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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2015
SEGMENT INFORMATION  
SEGMENT INFORMATION

 

3 - SEGMENT INFORMATION

 

The Company determines its operating segments based on the information utilized by the chief operating decision maker to assess performance and make decisions about allocating the Company’s resources.  Based on this information, the Company has two reportable operating segments, GS&T and Baltic Trading.  Both GS&T and Baltic Trading are engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.  GS&T and Baltic Trading seek to deploy their vessels on time charters, spot market-related time charters or in vessel pools trading in the spot market.  Segment results are evaluated based on net (loss) income.  The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s condensed consolidated financial statements.  As a result of the adoption of fresh-start reporting on the Effective Date, the cost basis for certain of Baltic Trading’s assets were revalued and are reflected in the Baltic Trading balances in the segment information reported below.

 

The following table presents a reconciliation of total voyage revenue from external (third party) customers for the Company’s two operating segments to total consolidated voyage revenue from external customers for the Company for the three and six months ended June 30, 2015 and 2014.

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

 

Successor

 

Predecessor

 

Successor

 

Predecessor

 

Voyage revenue from external customers

 

2015

 

2014

 

2015

 

2014

 

GS&T

 

$
26,959 

 

$
40,842 

 

$
53,656 

 

$
90,931 

 

Baltic Trading

 
6,813 

 
10,703 

 
13,725 

 
23,794 

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
33,772 

 
51,545 

 
67,381 

 
114,725 

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total consolidated voyage revenue from external customers

 

$
33,772 

 

$
51,545 

 

$
67,381 

 

$
114,725 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the three and six months ended June 30, 2015 and 2014. The intersegment revenue noted in the following table represents revenue earned by GS&T pursuant to the management agreement entered into with Baltic Trading, which includes commercial service fees, technical service fees and sale and purchase fees, if any.

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

 

Successor

 

Predecessor

 

Successor

 

Predecessor

 

Intersegment revenue

 

2015

 

2014

 

2015

 

2014

 

GS&T

 

$
1,671

 

$
1,022

 

$
3,051

 

$
2,067

 

Baltic Trading

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
1,671

 
1,022

 
3,051

 
2,067

 

Eliminating revenue

 
(1,671

)
(1,022

)
(3,051

)
(2,067

)

 

 

 

 

 

 

 

 

 

 

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total net loss for the Company’s two operating segments to total consolidated net loss for the three and six months ended June 30, 2015 and 2014. The eliminating net (income) loss noted in the following table consists of the elimination of intercompany transactions between GS&T and Baltic Trading, as well as dividends received by GS&T from Baltic Trading for its Class B shares of Baltic Trading, if applicable.

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

 

Successor

 

Predecessor

 

Successor

 

Predecessor

 

Net loss

 

2015

 

2014

 

2015

 

2014

 

GS&T

 

$
(38,870

)

$
(59,874

)

$
(71,898

)

$
(98,444

)

Baltic Trading

 
(13,088

)
(5,674

)
(58,899

)
(9,207

)

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
(51,958

)
(65,548

)
(130,797

)
(107,651

)

Eliminating net (income) loss

 
(6

)
9

 
269

 
145

 

 

 

 

 

 

 

 

 

 

 

Total consolidated net loss

 

$
(51,952

)

$
(65,557

)

$
(131,066

)

$
(107,796

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated assets as of June 30, 2015 and December 31, 2014. The eliminating assets noted in the following table consist of the elimination of intercompany transactions resulting from the capitalization of fees paid to GS&T by Baltic Trading as vessel assets, including related accumulated depreciation, as well as the outstanding receivable balance due to GS&T from Baltic Trading as of June 30, 2015 and December 31, 2014.

 

 

 

Successor

 

Successor

 

Total assets

 

June 30,
2015

 

December 31,
2014

 

GS&T

 

$
1,277,313

 

$
1,270,923

 

Baltic Trading

 
394,375

 
482,415

 

 

 

 

 

 

 

Total operating segments

 
1,671,688

 
1,753,338

 

Eliminating assets

 
(2,088

)
(425

)

 

 

 

 

 

 

Total consolidated assets

 

$
1,669,600

 

$
1,752,913