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NYSSA Small Cap Innovators Conference
October 5, 2006
Forward Looking Statements"Safe Harbor" Statement
under the Private Securities Litigation Reform Act of 1995This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following:
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changes in demanda material decline or prolonged weakness in rates in the shipping marketchanges in rules and regulations applicable to the shipping industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countriesactions taken by regulatory authoritieschanges in trading patterns significantly impacting overall vessel tonnage requirementschanges in the typical seasonal variations in charter ratesincreases in costs including without limitation: changes in production of or demand for oil and petroleum products, generally or in particular regionscrew wages, insurance, provisions, repairs and maintenancechanges in general domestic and international political conditionschanges in the condition of the company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs)and other factors listed from time to time in the company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the period ended December 31, 2005, its Quarterly Reports on Form 10-Q for the period ended June 30, 2006 and its subsequent reports on Form 10-Q and Form 8-K
Management Presenters
Joseph E. Royce Chairman, President & CEO
Ferdinand V. Lepere Executive Vice President & CFO
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Providing Complete Transportation Solutions
Services We Provide:
Ocean TransportationOcean transport for breakbulk, bulk, RoRo, container and project cargo, frequent sailings, just-in-time shipping, Port Captain services(for optimal loading and discharging), multipurpose tweendeckers and bulk carriers.
Portside/Inland LogisticsTotal project coordination, door –to-door transportation services, port agency and stevedoring, warehousing, distribution, customs clearance and documentation.
Comprehensive Support ServicesTransportation planning and consultation, cargo management, inventory control, condition surveys, dispute resolution and insurance.
Solutions For Challenging CargoesHigh-value cargoes, time sensitive cargoes, odd shapes and sizes and heavy lifts.
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TBS: A Unique & Growing Shipping Franchise
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We provide complete transportation solutions to our customers globally
A mixture of tariff based liner, parcel, and bulk transportation services focusing on non-containerized cargoes
Long standing position in our core markets of Latin America and Asia
Regularly scheduled liner / parcel services in many of our markets
Focus on multipurpose tweendeckers and handysize/handymax bulk carriers
Moderate leverage
Prudent growth after careful research and testing of new market opportunities
Management team together for the last 20 years, 13 of which as TBS
Our business model differentiates us from traditional drybulk operators
Fleet Fundamentals
Retractable Tweendeck
ProjectCargo
SteelCoils
ConstructionEquipment
Pipes
Tractors
Generators
Paper
SteelPlates
WireRods
Bulldozers
NY001M2F_Corel\
boat_sand.cdr
Project CargoProject Cargo
Steel CoilsSteel CoilsBulkBulk
Smaller Fleet StrategySmaller Fleet StrategySmaller Fleet Strategy
Why our vessels work for us and our customers
Why our vessels work for us and our Why our vessels work for us and our customerscustomers
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• Fleet of 19 Multi-Purpose Tweendeckers (17,300 –
37,400 dwt) uniquely able to fulfill our mission
• Fleet of 12 Handysize/Handymax Bulk Carriers
(29,400 – 45,500 dwt) complements our Tweendeckers.
• Optimal cargo capacity for our markets
• Self-loading / self-discharging – 8 and 10 cbm grabs
• Accommodates multiple cargo types
• Retractable Tweendeck optimizes floor space and
cargo flexibility.
Our Trade Routes5 Trade Routes
TBS Pacific Service operates eastbound and westbound liner and parcel services from East Asia to the West or North coasts of South America.
TBS Latin America Service operates sailings between the East Coast and the North and West Coasts of South America.
TBS North America Service operates bulk cargo services between South America and North America.
TBS Ocean Carriers offers shipping solutions worldwide on a customer-by-customer basis including sailings from Brazil to the West Coast of Africa.
TBS Middle East Carriers offers bulk service within the Middle East region from ports inthe United Arab Emirates (UAE) to ports in Kuwait and Qatar.
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TBS Revenue Mix
Well-balanced customer and cargo baseWellWell--balanced customer and cargo basebalanced customer and cargo base
By CargoBy CargoBy Cargo By Customer SizeBy Customer SizeBy Customer SizeBy GeographyBy GeographyBy Geography
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2002 2003 2004 2005 6M2006
Steel Products ConcentratesFertilizers Bulk CargoAgricultural Products General CargoOther
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2002 2003 2004 2005 6M2006
5.0% and Greater
3.0% - 4.9%
1.0% - 2.9%Less than 1.0%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2002 2003 2004 2005 6M2006
Brazil Other Latin AmericaJapan USAKorea ChinaRest of World
Page 8Note: Revenue breakdowns apply to freight revenue only.($ millions)
Global Network & Focus on Customer Relationships
33 nationalities11 full-time port captainsFully staffed agencies and representative offices on 5 continents
33 nationalities11 full-time port captainsFully staffed agencies and representative offices on 5 continents
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Professional Worldwide Staff
New York
Dominican RepublicDominican RepublicDominican RepublicDominican RepublicDominican RepublicDominican RepublicDominican RepublicDominican RepublicDominican Republic
SeoulSeoulSeoulSeoulSeoulSeoulSeoulSeoulSeoul
LondonLondonLondonLondonLondonLondonLondonLondonLondon
GuayaquilGuayaquilGuayaquilGuayaquilGuayaquilGuayaquilGuayaquilGuayaquilGuayaquil
San JoseSan JoseSan JoseSan JoseSan JoseSan JoseSan JoseSan JoseSan Jose
TokyoTokyoTokyoTokyoTokyoTokyoTokyoTokyoTokyo
Mexico CityMexico CityMexico CityMexico CityMexico CityMexico CityMexico CityMexico CityMexico City
ShanghaiShanghaiShanghaiShanghaiShanghaiShanghaiShanghaiShanghaiShanghai HamiltonHamiltonHamiltonHamiltonHamiltonHamiltonHamiltonHamiltonHamilton
CaracasCaracasCaracasCaracasCaracasCaracasCaracasCaracasCaracasBogotaBogotaBogotaBogotaBogotaBogotaBogotaBogotaBogota
LimaLimaLimaLimaLimaLimaLimaLimaLima
QuitoQuitoQuitoQuitoQuitoQuitoQuitoQuitoQuito
La PazLa PazLa PazLa PazLa PazLa PazLa PazLa PazLa Paz
SantiagoSantiagoSantiagoSantiagoSantiagoSantiagoSantiagoSantiagoSantiago
HamburgHamburgHamburgHamburgHamburgHamburgHamburgHamburgHamburg
GuatemalaGuatemalaGuatemalaGuatemalaGuatemalaGuatemalaGuatemalaGuatemalaGuatemala
Buenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos Aires
Rio De JaneiroRio De JaneiroRio De JaneiroRio De JaneiroRio De JaneiroRio De JaneiroRio De JaneiroRio De JaneiroRio De Janeiro
LagosLagosLagosLagosLagosLagosLagosLagosLagos
Sao PauloSao PauloSao PauloSao PauloSao PauloSao PauloSao PauloSao PauloSao Paulo
Dubai•
Fleet Development
1063Chartered Vessels at period end
183132Controlled Vessels at period end
12-200412-20056-2006
On May 2, 2006, TBS took delivery of the M/V Aztec Maiden increasing our controlled fleet to 32 vesselsTBS sold the M/V Dakota Belle, a 1977 built multipurpose tweendecker which was delivered on September 27, 2006 TBS has agreed to buy two handysize bulk carriers with expected delivery in November 2006“Business first – fleet second” growth strategyFocus on multipurpose tweendeckers and handysize/handymax bulk carriers
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Our Growth & Business Development Philosophy
We develop long-term business relationships based on providing full service transportation solutions
Our long-term business growth strategy is to continue solidifying and expanding our franchise business while developing new growth opportunities
A business first – fleet second growth strategy: we expand our fleet in response to the growth in our business
New growth opportunities are identified and tested primarily with chartered vessels
Balanced revenue sources create a sustainable business model
Capital retention and low leverage provide financial flexibility
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Ferdinand V. LepereExecutive Vice President & CFO
Management Presenter
Six Months 2006 Operating & Financial Highlights
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7,617,42320,470,88728,088,310Weighted Average Common Shares
-56 %$1.11$0.49EPS diluted
-19 %39.932.4EBITDA (*1)
-54%30.013.7Net Income
+3%-7%
+1 %
90.131.2
0.1121.4
93.129.0
0.6122.7
Voyage RevenuesTime Charter RevenuesOther RevenuesTotal Revenues
Six Months 2006/2005
Six Months 2005
Six Months 2006
In million $ (except EPS & share numbers)
(*1) non-GAAP financial measure. A reconciliation of EBITDA to Net Income is provided on page 15.
Six Months 2006 Revenue MetricsVOYAGE REVENUES
TIME CHARTER REVENUES
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+41%+20 %
1,468,6131,452,098
2,063,7081,747,089
-Total tons of cargo shipped-Tons of cargo shipped excluding aggregates
-27%-17%
$ 61.36$ 61.97
$ 45.13$ 51.32
Freight Rates per ton (1)
-For all cargoes-Excluding Aggregates
+24%3,1523,897Freight Voyage Days
+22%1822Average number of vessels
Six Months 2006/2005
Six Months 2005
Six Months 2006
-29%$ 18,935$ 13,412Daily Charter-Out Hire Rate
+31%1,6492,162Time Charter Days
+33%912Average number of vessels
Six Mos. 2006/2005Six Mos. 2005Six Mos. 2006
(1) Weighted Average freight rates
Consolidated Balance Sheet Highlights
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37 %34%Net Debt/Total Capitalization
177.8191.8Shareholders’ Equity
24.723.2Capital Leases (including current portion)
105.788.5Total Debt (including current portion)
342.4328.9Total Assets
266.9273.5Vessels, net
27.211.7Cash and Equivalents
12/20056/2006In million $
EBITDA Reconciliation
20052006In million $
June 30,
$39.9
6.3
3.6
$30.0
$32.4EBITDA
13.3Depreciation
5.4Net interest expense
$13.7 Net Income
Six Months EndedEBITDA Reconciliation
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New Credit Facility
New $ 140 million credit facility led by Bank of America (July 31, 2006)
Refinance existing indebtedness – working capital – additional vessel acquisitions
$ 75 million self amortizing term loan with a 4 year term and $ 65 million revolving credit facility
Consolidation of indebtedness under one facility – better terms and more flexibility – ability to execute our growth strategy
Joseph E. RoyceChairman, President and CEO
Management Presenter
Why Invest in TBS?
Sustainable business model which differentiates us from traditional dry bulk operators. Strong and long established presence in our core markets of Latin America and Asia which creates barriers to entry and enables us to capture an increasing portion of the regional trade flows.A business development philosophy based on prudent growth only after careful research and testing of new market opportunities, coupled with a business first-fleet second growth strategy.Capital retention and low leverage provide financial flexibility for further growth.Fleet of 31 controlled vessels well positioned to benefit from any sustained increase in freight rates.The Managers of the business are substantial owners and their interest is aligned with that of the stockholders.Management team together for the last 20 years, 13 of which as TBS
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Contacts
Investor Relations/Media:
Nicolas BornozisCapital Link, Inc., New YorkTel. [email protected]
Company Contact:
Ferdinand V. LepereExecutive Vice President andChief Financial OfficerTBS International LimitedTel. [email protected]
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Visit our website at www.tbsship.com
