TBS International Limited Reports Third Quarter and Nine Months 2009 Financial Results

HAMILTON, BERMUDA, Nov 09 (MARKET WIRE) --
TBS International Limited (NASDAQ: TBSI) announced today its financial
and operating results for the third quarter and nine months ended
September 30, 2009.

Third Quarter and Nine Months 2009 highlights:

Metric Q3 2009 Q3 2008 9M 2009 9M 2008
---------- ----------- ---------- -----------
Revenue (thousands) $ 74,332 $ 183,322 $ 217,726 $ 471,845
Net (Loss)
Income (thousands) $ (18,139) $ 59,143 $ (56,340) $ 157,162
EPS (basic and diluted) $ (0.61) $ 1.96 $ (1.89) $ 5.40
Weighted Average Number of
Shares (basic and diluted) 29,863,460 30,104,863 29,836,239 28,980,101
EBITDA (thousands) (1) $ 10,464 $ 83,895 $ 26,486 $ 221,001
Drydock Days 191 229 481 568

Freight Voyages
Average Daily Voyage TCE $ 12,296 $ 33,143 $ 11,726 $ 31,463
Freight Voyage Days 2,630 3,296 8,728 8,429
Tons of Cargo Shipped
(thousands) 2,098 2,628 6,694 6,960
Average Freight Rate for
All Cargoes $ 27.25 $ 61.40 $ 27.10 $ 55.78
Average Freight Rate
excluding Aggregates $ 46.81 $ 95.85 $ 43.75 $ 91.92
Bunker Cost/Voyage Day $ 4,990 $ 8,585 $ 4,553 $ 7,434

Time Charter out Voyages
Average Daily Time Charter
TCE $ 11,048 $ 32,206 $ 9,255 $ 30,876
Time Charter Days 1,384 577 3,411 2,384

(1) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
Reconciliations" following the financial statements included in this
press release for a reconciliation of EBITDA to Net (loss) income.

Third Quarter 2009 Results:

For the third quarter ended September 30, 2009, total revenues were $74.3
million, a decrease of 59.5% compared to the $183.3 million for the same
period in 2008. Net loss for the third quarter 2009 was $18.1 million, a
decrease of 130.6% compared to $59.1 million profit for the same period in
2008. Earnings per share on a basic and diluted basis were $(0.61) in the
third quarter of 2009, calculated based on 29,863,460 shares, compared to
$1.96 for the third quarter 2008, calculated based on 30,104,863 shares.

EBITDA, which is a non-GAAP measure, decreased by 87.5% to $10.5 million
for the quarter ended September 30, 2009 from $83.9 million in 2008.
Please see "Non-GAAP Reconciliations - EBITDA" following the financial
statements in this press release for a reconciliation of EBITDA to net
(loss) income.

Revenues:

Total revenues of $74.3 million for the third quarter 2009 include voyage
revenues of $57.2 million, time charter revenues of $16.0 million and
logistics and other revenues of $1.1 million.

An average of 44 vessels (excluding off-hire) were operated during the
third quarter 2009 compared to 42 vessels (excluding off-hire) during the
same period of 2008.

Voyage Revenues:

Voyage revenues in the third quarter 2009 were $57.2 million, a decrease
of $104.2 million or 64.6% from the $161.4 million during the same period
in 2008. The decrease is primarily due to a decrease of 55.6% in the
average freight rates for all cargoes combined with a decline of 20.2% in
the total cargo volume.

Total cargo volume (including aggregates) decreased 530,000 tons or 20.2%
to 2,098,000 tons for the third quarter 2009 from 2,628,000 tons for the
same period in 2008. Non-aggregate revenue tons carried decreased 398,000
tons for the third quarter due to decreases in non-aggregate bulk cargo.
Aggregate revenue tons carried decreased 132,000 tons for the three
months ended September 30, 2009 as compared to the same period in 2008.
Freight rates excluding aggregates decreased $49.04 per ton or 51.2% to
$46.81 per ton for the third quarter 2009 from $95.85 per ton during the
same period in 2008.

Average Daily Voyage Time Charter Equivalent, which is an industry
standard metric reflecting the daily net earnings of a voyage after
deducting all voyage expenses from voyage revenues, was $12,296 per day
in the third quarter 2009, a decrease of 62.9% from the $33,143 during
the same period in 2008 and an increase of 9.1% from the $11,268 per day
during the second quarter 2009.

Time Charter Revenues:

Time charter revenues decreased by $3.3 million or 17.1% to $16.0 million
for the third quarter 2009 from $19.3 million for the same period in 2008,
reflecting a decrease in the average charter hire rates offset by an
increase in the number of days that vessels were chartered out.

Average Daily Time Charter Equivalent, which is an industry standard
metric reflecting time charter-out revenues during the period reduced by
commissions, was $11,048 per day in the third quarter 2009, a decrease of
65.7% from the $32,206 during the same period of 2008. The key factor
driving the decrease in the average time charter equivalent rate per day
is the worldwide economic crisis.

Expenses:

Total operating expenses for the third quarter 2009 decreased by $31.9
million or 26.7% to $87.6 million from $119.5 million for the same period
in 2008.

Voyage expenses, which include fuel costs, commissions, port call charges
and stevedoring, declined by $27.4 million or 51.8% to $25.5 million for
the third quarter 2009. The decrease is due to a decline in fuel expenses
as a result of lower average fuel costs and lower fuel consumption;
decreased commission expense as a result of lower voyage revenues, as well
as port call expenses and stevedore and other cargo-related expenses.

Vessel expenses which consist of operating expenses relating to owned and
controlled vessels, such as crewing, stores, repairs and maintenance,
insurance and charter hire fees for vessels that are chartered-in,
decreased by $2.3 million or 7.5% to $28.5 million for the third quarter
2009 as compared to $30.8 million for the same period in 2008. Owned
vessel expenses decreased by $1.0 million due to a decrease in the
operating expense day rate. Average operating expense day rates decreased
principally due to a decrease of expenditures for repairs and maintenance.
During the nine months ended September 30, 2008 we acquired ten vessels.
Those vessels required repairs and maintenance at a higher level than
vessels in the existing fleet which caused the day rate to be higher.
Chartered-in vessel expenses decreased $0.7 million due to a decrease in
the chartered-in rate per day.

General and administrative expenses decreased by $5.0 million or 35.7% to
$9.1 million in the third quarter 2009 reflecting our cost reduction
efforts and due to a decrease in personnel expenses, related to the
elimination of our 2009 bonus accrual.

The operating expenses for the third quarter 2009 also include an expense
of $0.8 million related to TBS Logistics Incorporated, our cargo and
transport management subsidiary.

Results for the Nine Months ended September 30, 2009:

For the nine months ended September 30, 2009, total revenues were $217.7
million, a decrease of 53.9% compared to the $471.8 million for the same
period 2008. Net loss for the nine months 2009 was $56.3 million, a
decrease of 135.8% compared to $157.2 million profit for the same period
2008. Earnings per share on a basic and diluted basis were $(1.89) for the
nine months ended September 30, 2009, calculated based on 29,836,239
shares, compared to $5.40 for the same period of 2008, calculated based on
28,980,101 shares.

EBITDA, which is a non-GAAP measure, decreased by 88.0% to $26.5 million
for the nine months ended September 30, 2009 from $221.0 million in 2008.
Please see "Non-GAAP Reconciliations" following the financial statements
included in this press release for a reconciliation of EBITDA to net
(loss) income.

An average of 44 vessels (excluding off-hire) were operated during the
nine months 2009 compared to 40 vessels (excluding off-hire) during the
same period of 2008.

Total revenues of $217.7 million for the nine months 2009 include voyage
revenues of $181.4 million, time charter revenues of $34.3 million and
logistic and other revenues of $2.0 million.

Corporate Developments:

On October 19, 2009, TBS announced that its Board of Directors had
unanimously approved for the place of incorporation of the company to be
changed from Bermuda to Ireland. TBS shareholders will be asked to vote in
favor of this proposed move at a special meeting of shareholders to be
held on December 4, 2009.

If the conditions to the proposed transaction are satisfied, including
approval by TBS's shareholders and the Supreme Court of Bermuda, TBS
International plc, an Irish company ("TBS-Ireland"), will become TBS's
parent company. Current shareholders of TBS will become shareholders of
TBS-Ireland. TBS-Ireland will be registered with the U.S. Securities and
Exchange Commission ("SEC") and be subject to the same SEC reporting
requirements as TBS is today. TBS-Ireland's shares will trade on the
Nasdaq Global Select Market under the ticker symbol "TBSI," the same
symbol under which TBS shares are currently traded. TBS expects the move
to take effect shortly after shareholder approval.

Debt Reclassification:

Generally accepted accounting principles require that long-term loans be
classified as a current liability when either a covenant violation that
gives the lender the right to call the debt has occurred at the balance
sheet date, or such a covenant violation would have occurred absent a
waiver of those covenants, and in either case it is probable that the
covenant violation will not be cured within the next 12 months. At
September 30, 2009, although the Company was in compliance with all
modified additional covenants and the debt is not currently callable by
the lenders, the Company would have been in violation of the previously
effective minimum consolidated fixed charge coverage ratio and the maximum
consolidated leverage ratio. Based on current internal projections, which
assume limited improvement in our business, management anticipates that it
is probable that the original covenant requirements will not be met during
the next twelve months. Accordingly, long-term loans are classified as a
current liability in the Consolidated Balance Sheet at September 30,
2009. The Company is addressing the need to restructure its credit
facilities as follows. We are discussing with our banks modifications of
the financial covenants in our existing credit facilities which would
enable us to reclassify the long term portion of outstanding debt as such
on our consolidated balance sheet. We are exploring the feasibility of new
financings to repay some of our existing credit facilities. We have filed
and have in place a registration statement on Form S-3, which allows TBS
to issue registered securities and may provide TBS another liquidity
option.

Recent Fleet Developments:

On September 23, 2009, TBS took delivery of the M.V. Rockaway Belle, the
first in a series of six "Roymar Class" 34,000 dwt multipurpose
tweendecker newbuilding vessels that the Company has on order with China
Communications Construction Company/ Nantong Yahua Shipbuilding Co. Ltd
for a purchase price of $35.5 million each.

With the delivery of M/V Rockaway Belle, TBS's current fleet expanded to
48 vessels with an aggregate of 1.43 million dwt, consisting of 25
tweendeckers and 23 handymax/ handysize bulk carriers.

Fleet Expansion and Newbuilding Program:

The previously announced TBS Newbuilding Program to construct six Roymar
Class multipurpose vessels with retractable tweendecks is proceeding with
the delivery of the first, M/V "Rockaway Belle" on September 23, 2009. The
Company expects delivery of the remaining five vessels, with the next
three vessels in 2010 and two vessels in 2011.

TBS previously entered into a $150 million term loan credit agreement with
a syndicate of lenders led by The Royal Bank of Scotland to finance the
building and purchase of these six new multipurpose vessels. As of
September 30, 2009, the Company has made cumulative payments of $98.3
million to the Shipyard towards the purchase of the five remaining
newbuild vessels.

TBS 2009 Drydock Program and Vessel Upgrade Program:

For 2009, TBS plans to drydock 23 vessels for approximately 660 drydocking
days with steel renewal of about 2,224 metric tons at a total cost of
approximately $21.9 million. This estimate includes one vessel that
entered into drydock during the fourth quarter of 2008.

Our anticipated 2009 drydocking schedule is as follows:

-- During the three months ended March 31, 2009, TBS drydocked one vessel
that entered into drydock during the fourth quarter of 2008 and continued
its drydocking for 16 days in the first quarter 2009. Additionally, eight
vessels entered into drydock for 138 drydock days, requiring about 644
metric tons of steel.
-- During the second quarter 2009, five vessels that entered into drydock
during the first quarter continued their drydocking for 88 days and three
vessels entered drydocking for 48 days, requiring about 368 metric tons of
steel.
-- During the third quarter, three vessels that entered into drydock
during the second quarter of 2009 continued their docking for 55 days and
six vessels entered into drydocking for 136 days, requiring about 707
metric tons of steel.
-- We estimate for the fourth quarter 2009, five vessels requiring about
505 metric tons of steel and about 179 drydock days.

Conference call and webcast:

On Tuesday, November 10, 2009 at 10:00 a.m. EST, the company's management
will host a conference call to discuss the results.

Conference call details:

Participants should dial into the call 10 minutes before the scheduled
time using the following numbers: 1-888-713-4213 (from the US) or
1-617-213-4865 (International Dial In). Participant Passcode: 15507133.
Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PBCT9PARM.
Pre-registrants will be issued a PIN number to use when dialing into the
live call which will provide quick access to the conference by bypassing
the operator upon connection.

Webcast:

There will also be a live -- and then archived -- slides and audio webcast
of the conference call on the company's website www.tbsship.com, which can
be accessed by clicking on the webcast link. As soon as practicable, the
webcast and the corresponding slides will be archived and will also be
accessible on our website.

Replay:

A telephonic replay of the conference call will be available from 1:00
p.m. EST on Tuesday, November 10, 2009 until Tuesday, November 17, 2009 by
dialing 1-888-286-8010 (from the US) or 1-617-801-6888 (International Dial
In). Access Code: 58940943. A replay of the webcast will be available soon
after the completion of the call.

Consolidated Statements of Income
For the Third Quarter and Nine Months
Ended September 30, 2009 and 2008
(In thousands, except per share amounts and outstanding shares)

Three Months Ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------

Revenue
Voyage revenue $ 57,163 $ 161,397 $ 181,417 $ 388,253
Time charter revenue 15,972 19,308 34,311 77,292
Logistic revenue (1) 1,014 2,045 1,550 5,288
Other revenue 183 572 448 1,012
---------- ---------- ---------- ----------
Total Revenue 74,332 183,322 217,726 471,845
---------- ---------- ---------- ----------

Operating expenses
Voyage 25,505 52,882 81,818 126,731
Logistics (1) 754 1,726 1,175 4,417
Vessel 28,502 30,759 82,001 78,508
Depreciation and
amortization of vessels
and other fixed assets 23,747 19,980 70,069 49,988
General and
administrative 9,086 14,121 26,121 41,184

---------- ---------- ---------- ----------
Total operating expenses 87,594 119,468 261,184 300,828
---------- ---------- ---------- ----------

(Loss) income from
operations (13,262) 63,854 (43,458) 171,017

Other (expenses) and
income
Interest expense (4,863) (5,041) (12,840) (12,318)
Loss on extinguishment of
debt (2) - - - (2,318)
Interest and other income
(expense) (14) 330 (42) 781

---------- ---------- ---------- ----------
Total other (expenses) and
income, net (4,877) (4,711) (12,882) (13,855)
---------- ---------- ---------- ----------

Net (loss) income $ (18,139) $ 59,143 $ (56,340) $ 157,162
========== ========== ========== ==========

Earnings per share
Net (loss) income per
common share
Basic and Diluted $ (0.61) $ 1.96 $ (1.89) $ 5.40

Weighted average common
shares outstanding
Basic and Diluted 29,863,460 30,104,863 29,836,239 28,980,101

Operating Data for the Three and Nine Months Ended September 30, 2009
and 2008

Three Months Ended Nine Month Ended
September 30, September 30,
------------------- -----------------
2009 2008 2009 2008
--------- --------- -------- --------
Other Operating Data:
Controlled vessels (at end of period)
(3) 48 46 48 46
Chartered vessels (at end of period)
(4) - 1 - 1
Freight Voyage days (5) 2,630 3,296 8,728 8,429
Vessel days (6) 4,425 4,235 13,151 11,870
Tons of cargo shipped (7) 2,098 2,628 6,694 6,960
Revenue per ton (8) $ 27.25 $ 61.40 $ 27.10 $ 55.78
Tons of cargo shipped, excluding
aggregates (7) (9) 1,063 1,461 3,513 3,688
Revenue per ton, excluding
aggregates (8) (9) $ 46.81 $ 95.85 $ 43.75 $ 91.92
Chartered-out days 1,384 577 3,411 2,384
Chartered-out rate per day $ 11,540 $ 33,464 $ 10,059 $ 32,421
TCE per day-Freight Voyages (10) $ 12,296 $ 33,143 $ 11,726 $ 31,463
TCE per day-Time Charters-Out (11) $ 11,048 $ 32,206 $ 9,255 $ 30,876

(1) TBS Logistics represents revenue and related costs for cargo and
transportation management services as part of TBS' Five Star Service to
customers which began operations in the fourth quarter of 2007.

(2) In 2008 the loss on extinguishment of debt represents the write-off of
unamortized deferred finance costs in connection with the March 2008
refinancing of the Bank of America syndicated credit facility.

(3) Controlled vessels are vessels that are owned or chartered-in with an
option to purchase. As of September 30, 2009, two vessels in the
controlled fleet were chartered-in with an option to purchase.

(4) Represents vessels that were both chartered-in under short-term
charters (less than one year at the start of the charter) and chartered in
under long-term charters without an option to purchase.

(5) Represents the number of days controlled and time-chartered vessels
were operated by the Company performing freight voyages. Freight voyage
days exclude both off-hire days and time chartered out days.

(6) Represents the number of days that relate to vessel expense for
controlled and time-chartered vessels. Vessel expense relating to
controlled vessels is based on a 365-day year. Vessel expense relating to
chartered-in vessels is based on the actual number of days the vessel is
operated, excluding off-hire days.

(7) In thousands.

(8) Revenue tons is a measurement on which shipments are freighted.
Cargoes are rated as weight (based on metric tons) or measure (based on
cubic meters), whichever produces the higher revenue will be considered
the revenue ton.

(9) Aggregates represent high-volume, low-freighted cargo, which can
overstate the amount of tons that is carried on a regular basis and
accordingly reduces the revenue per ton. TBS believes that the exclusion
of aggregates better reflects their cargo shipping and revenue per ton
data for their principal services.

(10) Daily Time Charter Equivalent or "TCE" rates are defined as voyage
revenue less voyage expenses during the period divided by the number of
available freight voyage days during the period. Voyage expenses include:
fuel, port call, commissions, stevedore and other cargo related and
miscellaneous voyage expenses. No deduction is made for vessel or general
and administrative expenses. TCE includes the full amount of any probable
losses on voyages at the time such losses can be estimated. TCE is an
industry standard for measuring and analyzing fluctuations between
financial periods and as a method of equating TCE revenue generated from a
voyage charter to time charter revenue.

(11) Daily Time Charter Equivalent or "TCE" rates for vessels that are
time chartered out are defined as time charter revenue during the period
reduced principally by commissions divided by the number of available
time charter days during the period. Commission for vessels that are time
chartered out for the three months ended September 30, 2009 and September
30, 2008 were $0.7 million and $0.9 million, respectively. Commission for
the nine months ended September 30, 2009 and September 30, 2008 were $1.4
million and $3.7 million. For the nine months ended September 30, 2009,
time charter voyages include primarily fuel cost as well as other
miscellaneous voyage costs of $1.3 million. The fuel cost is related to
fuel price differentials caused by volatility in the fuel market and the
cost for ballasting vessels to time charter delivery ports. No deduction
is made for vessel or general and administrative expenses. TCE is an
industry standard for measuring and analyzing fluctuations between
financial periods and as a method of equating TCE revenue generated from
a voyage charter to time charter revenue.

Balance Sheet Data

Please find below TBS' selected balance sheet data:

September 30, December 31,
2009 2008
------------ -------------

Balance Sheet Data (In thousands):
Cash and cash equivalents $ 46,401 $ 131,150
Restricted Cash 12,675 -
Working capital (269,557) 104,311
Total assets 941,466 1,041,685
Total debt, including current portion 341,247 383,074
Total shareholders' equity 546,171 598,296

Non-GAAP Reconciliations

Please find below TBS' EBITDA reconciliation for the three and nine months
ended September 30, 2009 and 2008.

Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2009 2008 2009 2008
--------- ---------- --------- ----------

EBITDA Reconciliation (In
thousands):
Net (loss) Income $ (18,139) $ 59,143 $ (56,340) $ 157,162
Net interest expense 4,856 4,772 12,757 13,851
Depreciation and Amortization 23,747 19,980 70,069 49,988

--------- ---------- --------- ----------

EBITDA $ 10,464 $ 83,895 $ 26,486 $ 221,001
========= ========== ========= ==========

Forward-Looking Statements "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995

This press release 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:

-- TBS may not pursue its reincorporation from Bermuda to Ireland;
-- TBS may not be able to complete the reincorporation, which is
dependent on actions by certain third party government agencies, in the
time period anticipated, or at all;
-- the reincorporation might not achieve the anticipated benefits for
TBS;
-- changes in demand for the company's services, which are increasingly
difficult to predict due to the current economic downturn and the
widespread reduction of business activity generally;
-- a decline in rates in the shipping market will continue for a
prolonged period;
-- the effect of a decline in vessel valuations;
-- the company's ability to maintain financial ratios and satisfy
financial covenants in its credit facilities;
-- changes 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 countries;
-- actions taken by regulatory authorities;
-- changes in trading patterns significantly impacting overall vessel
tonnage requirements;
-- changes in the typical seasonal variations in charter rates;
-- increases in costs, including changes in production of or demand for
oil and petroleum products, crew wages, insurance, provisions, repairs and
maintenance, generally or in particular regions;
-- the risk that financial counterparties will default;
-- changes in general domestic and international political conditions;
-- changes in the condition of the company's vessels or applicable
maintenance or regulatory standards, which may affect, among other things,
its anticipated drydocking or maintenance and repair costs;
-- increases in the cost of the company's drydocking program or delays in
its anticipated drydocking schedule;
-- China Communications Construction Company Ltd./Nantong Yahua
Shipbuilding Group Co., Ltd.'s ability to complete and deliver the newbuild
vessels on the anticipated schedule and the ability of the parties to
satisfy the conditions in the shipbuilding agreements; 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, 2008 and its
subsequent reports on Form 10-Q and Form 8-K.

About TBS International Limited:

TBS is a fully-integrated transportation service company that offers
customers the TBS Five Star Service consisting of: ocean transportation,
operations, logistics, port services, and strategic planning. TBS offers
liner, parcel and bulk services, supported by a fleet of multipurpose
tweendeckers and handysize and handymax bulk carriers, including
specialized heavy-lift vessels and newbuild tonnage. TBS has developed its
business around key trade routes between Latin America and China, Japan
and South Korea, as well as select ports in North America, Africa, the
Caribbean and the Middle East.

Visit our website at www.tbsship.com

For more information, please contact:

Company Contact:
Ferdinand V. Lepere
Executive Vice President and Chief Financial Officer
TBS International Limited
Tel. 914-961-1000
InvestorRequest@tbsship.com

Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. New York
Tel. 212-661-7566
tbs@capitallink.com

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