8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 31, 2006

Maritrans Inc.

(Exact Name of Registrant Specified in Charter)

Delaware	1-9063	51-0343903
(State or Other	(Commission File	(I.R.S. Employer
Jurisdiction of	Number)	Identification No.)
Incorporation)

Two Harbour Place
302 Knights Run Avenue
Tampa, Florida	33602
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (813) 209-0600

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
Exhibit Index
Press Release, dated October 31, 2006

Item 2.02 Results of Operations and Financial Condition.

On October 31, 2006, Maritrans Inc. issued a press release reporting its third quarter 2006 financial results. The press release is being furnished with this Current Report on Form 8-K as Exhibit 99.1 and is hereby incorporated herein by reference. This report (including the exhibit) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any filing made by the Registrant pursuant to the Securities Act of 1933, as amended, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

Use of Non-GAAP Financial Information

To supplement its financial statements prepared in accordance with GAAP, the Company’s management uses the financial measure of Time Charter Equivalent (“TCE”), a commonly used industry measure where direct cots are deducted from revenue. Maritrans enters into various types of charters, some of which involve the customer paying substantially all voyage costs, while other types of charters involve Maritrans paying some or substantially all of the voyage costs. The Company has presented TCE in the press release to enhance an investor’s overall understanding of the way management analyzes the Company’s financial performance. Specifically, the Company’s management used the presentation of TCE revenue to allow for a more meaningful comparison of the Company’s financial condition and results of operations because TCE revenue essentially nets the voyage costs and voyage revenue to yield a measure that is comparable between periods regardless of the types of contracts utilized. These voyage costs are included in the “Operations expense” line item in the Unaudited Condensed Consolidated Financial Highlights. TCE revenue is a non-GAAP financial measure and a reconciliation of TCE revenue to revenue, the most directly comparable GAAP measure, is included in the press release. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

- 2 -

Item 9.01 Financial Statements and Exhibits.

          (c) Exhibits.

99.1 Press Release, dated October 31, 2006, issued by Maritrans Inc.

- 3 -

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MARITRANS INC.
By:	/s/ Walter T. Bromfield
	Walter T. Bromfield
	Chief Financial Officer

Dated: November 1, 2006

- 4 -

Exhibit Index

Exhibit
99.1	Press Release, dated October 31, 2006, issued by Maritrans Inc.

EX-99.1

Exhibit 99.1

NEWS RELEASE

Two Harbour Place
302 Knights Run Avenue
Tampa, FL 33602
813-209-0600
800-922-4596

FOR FURTHER INFORMATION CONTACT:
WALTER T. BROMFIELD (813) 209-0602
JUDITH M. CORTINA (813) 209-0647

MARITRANS REPORTS THIRD QUARTER 2006 EARNINGS

     TAMPA, FL – October 31, 2006 – Maritrans Inc. (NYSE: TUG), a leading U.S. flag marine petroleum transport company, today announced its third quarter financial results.

     Net income for the quarter ended September 30, 2006 was $4.0 million, or $0.33 diluted earnings per share, on revenues of $49.2 million. This compares with net income of $6.4 million, or $0.74 diluted earnings per share, on revenues of $44.9 million for the quarter ended September 30, 2005. For the third quarter ended September 30, 2006, net income included the reversal of an income tax reserve of $1.3 million, or $0.11 diluted earnings per share. In the prior year, net income for the quarter ended September 30, 2005 included a reversal of an income tax reserve of $1.2 million, or $0.14 diluted earnings per share. As of April 1, 2006, the Company changed its method of accounting for planned major maintenance activities from the accrual method to the deferral method. An appendix is included at the end of this release that details the effect of the accounting change on Maritrans’ results from January 1, 2004 and each period thereafter.

     Operating income for the quarter ended September 30, 2006, was $3.6 million compared to $8.7 million for the quarter ended September 30, 2005. Operating expenses increased to $45.6 million in the third quarter of 2006 from $36.2 million for the third quarter of 2005 primarily due to charter hire costs related to the charters of the vessels SEABROOK and SEA SWIFT, which charters did not exist in 2005. Additionally, the Company’s vessel insurance expenses increased $1.3 million compared to the same period of 2005 due to additional premiums for open policy periods from 2004 through 2006 due to a general call on all policyholders by the Company’s mutual insurance club. During the third quarter, rates in the U.S. Jones Act spot market increased compared to the second quarter of 2006, as a result of fewer vessels available in the market and higher refinery output. During the third quarter of 2006 the Company delivered 23 million barrels of crude oil to lightering customers compared to 21 million barrels delivered during the second quarter of 2006, which was primarily a result of increased production from a Delaware River refinery that was undergoing maintenance during the second quarter of 2006.

     On a Time Charter Equivalent (“TCE”) basis, a commonly used industry measure where direct voyage costs are deducted from voyage revenue, TCE revenue was $35.0 million for the quarter ended September 30, 2006 compared to $34.8 million for the quarter ended September 30, 2005, an increase of $0.2 million, or 0.6%. TCE revenue is a non-GAAP financial measure and a reconciliation of TCE revenue to revenue calculated in accordance with GAAP is attached hereto.

     During the third quarter of 2006, the Company experienced lower overall utilization than in the third quarter of 2005. Utilization for the third quarter of 2006 was 77.2% compared to 83.8% in the third quarter of 2005. In the quarter ended

September 30, 2006, the Company experienced 203 days of out of service time for capital projects, including barge rebuilding, and vessel maintenance. This compares to out of service time for maintenance and capital projects, including barge rebuilding, of 123 days in the third quarter of 2005. The Company expects to have at least 92 days out of service time during the fourth quarter of 2006 for capital projects, including barge rebuilding. In the quarter ended September 30, 2006, the Company did not experience any days out of service due to weather related events. In the quarter ended September 30, 2005, the Company experienced four significant storms that resulted in approximately 49 days of out of service time. In the quarter ended September 30, 2006, the Company did not experience any idle days in its spot fleet, compared to 17 days in the comparable period in 2005. In the quarter ended September 30, 2006, the Company experienced 63 idle days for the ALLEGIANCE and PERSEVERANCE while awaiting orders for grain voyages. The Company had no vessels in grain service in the comparable period in 2005.

PENDING TRANSACTION WITH OVERSEAS SHIPHOLDING GROUP INC.

     On September 25, 2006, the Company and Overseas Shipholding Group Inc., or OSG, announced that OSG had entered into a definitive agreement pursuant to which OSG will acquire all of the outstanding stock of Maritrans Inc. for $37.50 per share. The transaction is valued at approximately $455 million based on approximately 12 million shares outstanding and the assumption of net debt outstanding as of June 30, 2006. The transaction, which is expected to close by year-end 2006, is subject to approval by a majority of Maritrans’ stockholders and other customary closing conditions, including regulatory approvals. On October 17, 2006, the Federal Trade Commission, on behalf of itself and the Antitrust Division of the Department of Justice, granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Acts of 1976 with respect to the proposed acquisition. The special meeting of Maritrans’ stockholders to consider the proposed transaction has been scheduled for November 28, 2006. Stockholders of record at the close of business on October 20, 2006 will be entitled to vote at the meeting.

FLEET AND MARKET REPORT

     Maritrans operates a fleet of oil tankers and oceangoing married tug/barge units. In the third quarter of 2006, the Company operated its fleet at approximately 35% spot and 65% contract and intends to maintain similar spot market exposure in the fourth quarter of 2006.

     In September, the ALLEGIANCE entered into a charter to transport grain from Portland, Oregon to Kenya. The vessel is scheduled to complete this voyage in mid-December. The current grain cargo is the vessel’s fourth charter since being removed from petroleum transportation service in December 2005 in accordance with the Oil Pollution Act of 1990 (“OPA”). In July 2006, the Company’s tanker PERSEVERANCE reached its mandatory oil retirement date. In September 2006, the PERSEVERANCE entered into a charter to transport grain from Corpus Christi, Texas to Djibouti and Georgia. The vessel is scheduled to complete this voyage in November. The Company expects to incur approximately 15 days of idle time on each of these tankers in the fourth quarter of 2006.

FLEET REBUlLDING AND CONSTRUCTION PROGRAM

     Since 1998, Maritrans has been actively engaged in a double-hull rebuilding program aimed at ensuring that the Company’s Jones Act fleet is compliant with the Oil Pollution Act of 1990. Maritrans’ patented barge rebuilding process enables the Company to convert its vessels for significantly less cost than building new vessels.

     During 2006, the Company has continued to successfully implement its rebuilding program. The rebuild of the

Company’s seventh barge, the M 210, commenced on January 26, 2006. The M 210 rebuild is expected to have a total cost of approximately $30 million. The rebuild of the Company’s eighth barge, the OCEAN 211, is expected to commence following the return to service of the M 210. The OCEAN 211’s rebuild is also expected to have a total cost of approximately $30 million. The rebuilds of the M 210 and OCEAN 211 will also include the insertions of mid-bodies that will increase each of their respective capacities by approximately 38,000 barrels, or 17%. The rebuilds of the M 210 and the OCEAN 211 are expected to be completed early in 2007 and in the late summer of 2007, respectively. Upon completion of their double-hulling, and reflecting their larger carrying capacities, the M 210 and OCEAN 211 will be renamed the M 242 and M 243, respectively.

     The Company has three 350,000 barrel articulated tug-barge units under construction, with deliveries scheduled for the fourth quarter of 2007, the second quarter of 2008 and the fourth quarter of 2008, respectively. The cost of each ATB is expected to be approximately $77.5 million. The Company also has two 8,000-horsepower tugboats under construction. One tugboat is expected to be delivered in the fourth quarter of 2008 with the second delivered in the first quarter of 2009. The cost of each tugboat is expected to be approximately $16 million.

ABOUT MARITRANS

     Maritrans Inc. is a U.S.-based company with a 78-year commitment to building and operating petroleum transport vessels for the U.S. domestic trade. Maritrans employs a fleet of 11 tug/barge units and 5 tankers. Two of these tankers were redeployed to the transportation of non-petroleum cargo. Approximately 75 percent of our oil carrying fleet capacity is double-hulled. Our current oil carrying fleet capacity aggregates approximately 3.4 million barrels, 79 percent of which is barge capacity. Maritrans is headquartered in Tampa, Florida, and maintains an office in the Philadelphia area.

SAFE HARBOR STATEMENT

     Certain statements in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including statements made with respect to present or anticipated utilization, future revenues and customer relationships, capital expenditures, future financings, and other statements regarding matters that are not historical facts, and involve predictions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, growth, performance, earnings per share or achievements to be materially different from any future results, levels of activity, growth, performance, earnings per share or achievements expressed in or implied by such forward-looking statements. In some cases you can identify forward-looking statements by terminology such as ‘‘may,’’ ‘‘seem,’’ ‘‘should,’’ ‘‘believe,’’ ‘‘future,’’ ‘‘potential,’’ ‘‘estimate,’’ ‘‘offer,’’ ‘‘opportunity,’’ ‘‘quality,’’ ‘‘growth,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘plan,’’ ‘‘focus,’’ ‘‘through,’’ ‘‘strategy,’’ ‘‘provide,’’ ‘‘meet,’’ ‘‘allow,’’ ‘‘represent,’’ ‘‘commitment,’’ ‘‘create,’’ ‘‘implement,’’ ‘‘result,’’ ‘‘seek,’’ ‘‘increase,’’ ‘‘establish,’’ ‘‘work,’’ ‘‘perform,’’ ‘‘make,’’ ‘‘continue,’’ ‘‘can,’’ ‘‘will,’’ ‘‘include,’’ or the negative of such terms or comparable terminology. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on our current plans or assessments that are believed to be reasonable as of the date of this prospectus supplement. The forward-looking statements are subject to a number of risks and uncertainties and include the following: satisfaction of conditions to closing of the proposed merger with OSG, demand for, or level of consumption of, oil and petroleum products; future spot market charter rates; ability to attract and retain experienced, qualified and skilled crewmembers; competition that could affect our market share and revenues; risks inherent in marine transportation; the cost and availability of insurance coverage; delays or cost overruns in the building of new vessels, the double-hulling of our remaining single hulled vessels and scheduled shipyard maintenance; decrease in demand for lightering services; environmental and regulatory conditions; reliance on a

limited number of customers for revenue; the continuation of federal law restricting United States point-to-point maritime shipping to US vessels (the Jones Act); asbestos-related lawsuits; fluctuating fuel prices; high fixed costs; capital expenditures required to operate and maintain a vessel may increase due to government regulations; reliance on unionized labor; federal laws covering our employees that may subject us to job-related claims; and significant fluctuations of our stock price. Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this news release completely and with the understanding that our actual future results may be materially different from what the Company expects. These forward-looking statements represent our estimates and assumptions only as of the date of this news release. Except for our ongoing obligations to disclose material information under the federal securities laws, the Company is not obligated to update these forward-looking statements, even though our situation may change in the future. The Company qualifies all of its forward-looking statements by these cautionary statements.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ Thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Revenue	$	49,161	$	44,930	$	140,448	$	134,800
Voyage Costs		14,210		10,095		36,219		30,691
Time Charter Equivalent	$	34,951	$	34,835	$	104,229	$	104,109

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
($ Thousands, Except Per Share Amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenue	$	49,161		$	44,930		$	140,448		$	134,800
Operations expense
Operations expense		14,210			10,095			36,219			30,691
Charter hire		3,087			—			8,624			—
Voyage costs		15,765			13,138			44,289			39,827
Maintenance expense		2,072			1,804			5,894			4,623
General and administrative expense		2,231			2,208			6,823			10,017
Depreciation and amortization expense		8,209			8,963			25,267			27,179
Gain on sale of assets		—			—			(2,868	)		(647	)
Operating Income		3,587			8,722			16,200			23,110
Other Income		738			173			2,316			4,432
Interest Expense		(43	)		(838	)		(425	)		(2,259	)
Pre-tax income		4,282			8,057			18,091			25,283
Income Tax Provision		272			1,654			5,122			7,941
Net Income	$	4,010		$	6,403		$	12,969		$	17,342
Diluted Earnings Per Share	$	0.33		$	0.74		$	1.08		$	2.03
Diluted Shares Outstanding		12,068			8,596			12,049			8,562
Capital Expenditures	$	11,843		$	25,824		$	38,407		$	39,828
Utilization of Calendar days		77.2	%		83.8	%		78.0	%		82.5	%
Barrels carried (in millions)		41.6			42.5			126.0			132.1
Available days		1,253			1,250			3,869			3,642

NOTE: All periods presented are conformed to the new major maintenance accounting treatment. See also Appendix I.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
($ Thousands)

	September 30, 2006		December 31, 2005
Cash and cash equivalents	$	42,782	$	58,794
Other current assets		35,603		29,522
Net vessels and equipment		255,562		233,641
Other assets		22,972		24,479
Total assets	$	356,919	$	346,436
Current portion of debt	$	4,144	$	3,973
Total other current liabilities		25,556		21,311
Long-term debt		52,271		55,400
Deferred other liabilities		8,552		9,435
Deferred income taxes		43,481		42,321
Stockholders’ equity		222,915		213,996
Total liabilities and stockholders’ equity	$	356,919	$	346,436

NOTE: All periods presented are conformed to the new major maintenance accounting treatment. See also Appendix I.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION
($ Thousands)

	Nine Months Ended September 30,
	2006			2005
Cash flows from operating activities:
Net income	$	12,969		$	17,342
Depreciation and amortization		25,267			27,179
Other		(13,073	)		(6,797	)
Total adjustments to net income		12,194			20,382
Net cash provided by operating activities		25,163			37,724
Net cash used in investing activities		(34,407	)		(39,181	)
Net cash used in financing activities		(6,768	)		(4,079	)
Net increase in cash and cash equivalents		(16,012	)		(5,536	)
Cash and cash equivalents at beginning of period		58,794			6,347
Cash and cash equivalents at end of period	$	42,782		$	811

NOTE: All periods presented are conformed to the new major maintenance accounting treatment. See also Appendix I.

				Barge or Tanker
	Capacity in		Double-	Initial Construction/
Barges/Tugs	Barrels(1)		Hull	Rebuild Date
M 400/Constitution		410,000	Yes		1981	Originally built with double-hull
M 300/Liberty		263,000	Yes		1979	Originally built with double-hull
M 254/Intrepid		250,000	Yes		2002	Double-hull rebuild
M 252/Navigator		250,000	Yes		2002	Double-hull rebuild
M 244/Seafarer		240,000	Yes		2000	Double-hull rebuild
M 215/Sea Swift (5)		214,000	No		1975	Decision to rebuild has not yet been made(2)
Ocean 211/Freedom		212,000	No		2007	Scheduled double-hull delivery(3)
M 210/Columbia		213,000	No		2006	Scheduled double-hull delivery(3)
M 214/Honour		208,000	Yes		2004	Double-hull rebuild(4)
M 209/Enterprise		206,000	Yes		2005	Double-hull rebuild(4)
M 192/Independence		172,000	Yes		1998	Double-hull rebuild
Total oil carrying capacity		2,638,000
Oil Tankers
Integrity		270,000	Yes		1975	Originally built with double-hull
Diligence		270,000	Yes		1977	Originally built with double-hull
Seabrook (6)		224,000	No		1983
Total oil carrying capacity		764,000
Other
Allegiance		251,000	No		1980	Redeployed in transport of grain
Perseverance		251,000	No		1981	Prepared to transport grain
		502,000
Total capacity		3,904,000

(1)	Represents 98% capacity, which is the effective carrying capacity of a tank vessel.
(2)	If rebuilt, the Company anticipates that a 30,000 barrel mid-body would be inserted.
(3)	Vessels are being rebuilt with 38,000 barrel mid-body insertions.
(4)	Completion of the double-hull rebuild included a 30,000 barrel mid-body insertion.
(5)	Sea Swift chartered in from Crowley Maritime Corporation.
(6)	Chartered in from Seabrook Carriers Inc.

APPENDIX I

ACCOUNTING CHANGE FOR PLANNED MAJOR MAINTENANCE ACTIVITIES

As of April 1, 2006, the Company changed its method of accounting for planned major maintenance activities from the accrual method to the deferral method. Previously, the Company made provisions for the cost of upcoming major periodic overhauls of vessels and equipment in advance of performing the related maintenance and repairs. The costs expected to be paid in the upcoming year were included in accrued shipyard costs as a current liability with the remainder classified as a long-term liability. Under the deferral method, costs actually incurred are amortized on a straight-line basis over the period beginning at the completion of the maintenance event and ending at the commencement of the next scheduled regulatory drydocking. Management believes the deferral method is the preferable method for accounting for planned major maintenance activities because (i) it better matches the expenses incurred with the revenues generated, (ii) the deferral method improves comparability with the Company’s industry since the majority of the Company’s competitors use this method and (iii) the deferral method best fits the Company’s business circumstances because the Company has a small fleet of vessels, the expenditures for planned major maintenance activities are not continuous and the expenditures are not consistent across periods due to the timing of regulatory drydockings.

The Company recorded this change in accounting principle in accordance with SFAS No. 154, Accounting Changes and Error Corrections, which provides guidance on the accounting for and the reporting of accounting changes, including changes in accounting principles. SFAS 154 is effective for accounting changes made in fiscal years beginning after December 15, 2005. This statement requires retrospective application of accounting changes which is defined as the application of a different accounting principle to prior accounting periods as if that principle had always been used.

Pursuant to SFAS No. 154, the Company is required to apply the new accounting principle to all prior periods that the Company will report upon in the Annual Report on Form 10-K for the year ended December 31, 2006. Therefore, this accounting principle was retrospectively applied to the period of January 1, 2004 and to each period thereafter. The cumulative effect of the retrospective change to this accounting principle as of January 1, 2004 was a $17.9 million increase in total assets, a $2.7 million decrease in total liabilities and a $20.6 million increase in retained earnings.

The following presents the effect of the retrospective application of this change in accounting principle on the Company’s income statement and balance sheet as of and for the respective periods.

				Effect of			Three Months
	Three Months Ended			Change in			Ended September
	September 30, 2006			Accounting			30, 2006
	Pre Adoption			Principle			as Reported
Revenues	$	49,161					$	49,161
Costs and expenses:
Operation expense		33,062						33,062
Maintenance expense		5,457			(3,385	)		2,072
General and administrative		2,231						2,231
Depreciation and amortization		5,154			3,055			8,209
Total operating expenses		45,904			(330	)		45,574
Operating income		3,257			330			3,587
Interest expense		(43	)					(43	)
Interest income		680						680
Other income, net		58						58
Income before income taxes		3,952			330			4,282
Income tax provision		153			119			272
Net income	$	3,799		$	211		$	4,010
Basic earnings per share	$	0.32		$	0.02		$	0.34
Diluted earnings per share	$	0.31		$	0.02		$	0.33

				Effect of			Three Months
	Three Months Ended			Change in			Ended June 30,
	June 30, 2006			Accounting			2006
	Pre Adoption			Principle			as Reported
Revenues	$	43,903					$	43,903
Costs and expenses:
Operation expense		27,094						27,094
Maintenance expense		4,931			(3,282	)		1,649
General and administrative		2,287						2,287
Depreciation and amortization		4,958			3,098			8,056
Total operating expenses		39,270			(184	)		39,086
Operating income		4,633			184			4,817
Interest expense		(108	)					(108	)
Interest income		761						761
Other income, net		63						63
Income before income taxes		5,349			184			5,533
Income tax provision		1,862			66			1,928
Net income	$	3,487		$	118		$	3,605
Basic earnings per share	$	0.29		$	0.01		$	0.30
Diluted earnings per share	$	0.29		$	0.01		$	0.30

				Effect of			Three Months
	Three Months Ended			Change in			Ended March 31,
	March 31, 2006			Accounting			2006
	as Reported			Principle			as Adjusted
Revenues	$	47,384					$	47,384
Costs and expenses:
Operation expense		28,976						28,976
Maintenance expense		5,277			(3,103	)		2,174
General and administrative		2,305						2,305
Depreciation and amortization		5,244			3,759			9,003
Gain on involuntary conversion of assets		(2,868	)					(2,868	)
Total operating expenses		38,934			656			39,590
Operating income		8,450			(656	)		7,794
Interest expense		(273	)					(273	)
Interest income		678						678
Other income, net		76						76
Income before income taxes		8,931			(656	)		8,275
Income tax provision		3,157			(236	)		2,921
Net income	$	5,774		$	(420	)	$	5,354
Basic earnings per share	$	0.49		$	(0.04	)	$	0.45
Diluted earnings per share	$	0.48		$	(0.03	)	$	0.45

				Effect of			Nine Months
	Nine Months Ended			Change in			Ended September
	September 30, 2006			Accounting			30, 2006
	Pre Adoption			Principle			as Reported
Revenues	$	140,448					$	140,448
Costs and expenses:
Operation expense		89,132						89,132
Maintenance expense		15,664			(9,770	)		5,894
General and administrative		6,823						6,823
Depreciation and amortization		15,355			9,912			25,267
Gain on involuntary conversion of assets		(2,868	)		—			(2,868	)
Total operating expenses		124,106			142			124,248
Operating income		16,342			(142	)		16,200
Interest expense		(425	)					(425	)
Interest income		2,119						2,119
Other income, net		197						197
Income before income taxes		18,233			(142	)		18,091
Income tax provision		5,173			(51	)		5,122
Net income	$	13,060		$	(91	)	$	12,969
Basic earnings per share	$	1.10		$	(0.01	)	$	1.09
Diluted earnings per share	$	1.09		$	(0.01	)	$	1.08

				Effect of			Three Months
	Three Months Ended			Change in			Ended September
	September 30, 2005			Accounting			30, 2005
	as Reported			Principle			as Adjusted
Revenues	$	44,930					$	44,930
Costs and expenses:
Operation expense		23,233						23,233
Maintenance expense		5,221			(3,417	)		1,804
General and administrative		2,208						2,208
Depreciation and amortization		5,947			3,016			8,963
Total operating expenses		36,609			(401	)		36,208
Operating income		8,321			401			8,722
Interest expense		(838	)					(838	)
Interest income		114						114
Other income, net		59						59
Income before income taxes		7,656			401			8,057
Income tax provision		1,510			144			1,654
Net income	$	6,146		$	257		$	6,403
Basic earnings per share	$	0.73		$	0.03		$	0.76
Diluted earnings per share	$	0.71		$	0.03		$	0.74

	Nine Months
	Ended			Effect of			Nine Months
	September 30,			Change in			Ended September
	2005			Accounting			30, 2005
	as Reported			Principle			as Adjusted
Revenues	$	134,800					$	134,800
Costs and expenses:
Operation expense		70,518						70,518
Maintenance expense		15,312			(10,689	)		4,623
General and administrative		10,017						10,017
Depreciation and amortization		17,162			10,017			27,179
Gain on sale of assets		(647	)					(647	)
Total operating expenses		112,362			(672	)		111,690
Operating income		22,438			672			23,110
Interest expense		(2,259	)					(2,259	)
Interest income		281						281
Other income, net		4,151						4,151
Income before income taxes		24,611			672			25,283
Income tax provision		7,699			242			7,941
Net income	$	16,912		$	430		$	17,342
Basic earnings per share	$	2.02		$	0.05		$	2.07
Diluted earnings per share	$	1.98		$	0.05		$	2.03

			Effect of
			Change in			September 30,
	September 30, 2006		Accounting			2006
	Pre Adoption		Principle			as Reported
ASSETS
Current assets	$	84,387	$	(6,002	)	$	78,385
Vessels and equipment, net		255,562					255,562
Deferred costs, net		—		19,913			19,913
Goodwill		2,863					2,863
Other		1,372		(1,176	)		196
Total assets	$	344,184	$	12,735		$	356,919
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	34,812	$	(5,112	)	$	29,700
Non-current liabilities		105,264		(960	)		104,304
Stockholders’ equity		204,108		18,807			222,915
Total liabilities and stockholders’ equity	$	344,184	$	12,735		$	356,919

			Effect of
			Change in
	December 31, 2005		Accounting			December 31 2005
	as Reported		Principle			as Adjusted
ASSETS
Current assets	$	94,474	$	(6,158	)	$	88,316
Vessels and equipment, net		233,572		69			233,641
Deferred costs, net		—		21,405			21,405
Goodwill		2,863					2,863
Other		1,094		(883	)		211
Total assets	$	332,003	$	14,433		$	346,436
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	31,867	$	(6,583	)	$	25,284
Non-current liabilities		106,153		1,003			107,156
Stockholders’ equity		193,983		20,013			213,996
Total liabilities and stockholders’ equity	$	332,003	$	14,433		$	346,436

	Nine Months
	Ended			Effect of
	September 30,			Change in			Nine Months Ended
	2006			Accounting			September 30, 2006
	Pre Adoption			Principle			as Reported
Cash flows from operating activities:
Net income	$	13,060		$	(91	)	$	12,969
Total adjustments to net income		12,172			22			12,194
Net cash provided by operating activities		25,232			(69	)		25,163
Cash flows from investing activities:
Net cash used in investing activities		(34,476	)		69			(34,407	)
Cash flows from financing activities:
Net cash used in financing activities		(6,768	)		—			(6,768	)
Net increase in cash and cash equivalents		(16,012	)					(16,012	)
Cash and cash equivalents at beginning of period		58,794			—			58,794
Cash and cash equivalents at end of period	$	42,782		$	—		$	42,782

	Nine Months
	Ended			Effect of
	September 30,			Change in			Nine Months Ended
	2005			Accounting			September 30, 2005
	as Reported			Principle			as Adjusted
Cash flows from operating activities:
Net income	$	16,912		$	430		$	17,342
Total adjustments to net income		20,812			(430	)		20,382
Net cash provided by operating activities		37,724			—			37,724
Cash flows from investing activities:
Net cash used in investing activities		(39,181	)					(13,357	)
Cash flows from financing activities:
Net cash used in financing activities		(4,079	)		—			(3,694	)
Net increase in cash and cash equivalents		(5,536	)					(5,536	)
Cash and cash equivalents at beginning of period		6,347			—			6,347
Cash and cash equivalents at end of period	$	811		$	—		$	811

	Twelve Months						Twelve Months
	Ended December			Effect of Change			Ended December 31,
	31, 2005			in Accounting			2005
	as Reported			Principle			as Adjusted
Revenues	$	180,710					$	180,710
Costs and expenses:
Operation expense		98,701						98,701
Maintenance expense		20,320			(14,075	)		6,245
General and administrative		12,478						12,478
Depreciation and amortization		23,201			12,711			35,912
Gain on sale of assets		(628	)					(628	)
Total operating expenses		154,072			(1,364	)		152,708
Operating income		26,638			1,364			28,002
Interest expense		(2,846	)					(2,846	)
Interest income		393						393
Other income, net		4,203						4,203
Income before income taxes		28,388			1,364			29,752
Income tax provision		8,509			491			9,000
Net income	$	19,879		$	873		$	20,752
Basic earnings per share	$	2.33		$	0.10		$	2.43
Diluted earnings per share	$	2.28		$	0.10		$	2.38

	Twelve Months			Effect of			Twelve Months
	Ended December			Change in			Ended December
	31, 2005			Accounting			31, 2005
	as Reported			Principle			as Adjusted
Cash flows from operating activities:
Net income	$	19,879		$	873		$	20,752
Total adjustments to net income		19,731			(804	)		18,927
Net cash provided by operating activities		39,610			69			39,679
Cash flows from investing activities:
Net cash used in investing activities		(64,222	)		(69	)		(64,291	)
Cash flows from financing activities:
Net cash provided by financing activities		77,059			—			77,059
Net increase in cash and cash equivalents		52,447						52,447
Cash and cash equivalents at beginning of year		6,347			—			6,347
Cash and cash equivalents at end of year	$	58,794		$	—		$	58,794

				Effect of
	Twelve Months Ended			Change in			Twelve Months Ended
	December 31, 2004			Accounting			December 31, 2004
	as Reported			Principle			as Adjusted
Revenues	$	149,718					$	149,718
Costs and expenses:
Operation expense		80,517						80,517
Maintenance expense		20,761			(13,073	)		7,688
General and administrative		11,709						11,709
Depreciation and amortization		22,193			15,582			37,775
Total operating expenses		135,180			2,509			137,689
Operating income		14,538			(2,509	)		12,029
Interest expense		(2,318	)					(2,318	)
Interest income		254						254
Other income, net		333						333
Income before income taxes		12,807			(2,509	)		10,298
Income tax provision		2,975			(903	)		2,072
Net income	$	9,832		$	1,606	)	$	8,226
Basic earnings per share	$	1.20		$	(0.20	)	$	1.00
Diluted earnings per share	$	1.16		$	(0.19	)	$	0.97

	Twelve Months			Effect of			Twelve Months
	Ended December			Change in			Ended December
	31, 2004			Accounting			31, 2004
	as Reported			Principle			as Adjusted
Cash flows from operating activities:
Net income	$	9,832		$	(1,606	)	$	8,226
Total adjustments to net income		18,578			1,606			20,184
Net cash provided by operating activities		28,410			—			28,410
Cash flows from investing activities:
Net cash used in investing activities		(25,111	)					(25,111	)
Cash flows from financing activities:
Net cash provided by in financing activities		(566	)		—			(566	)
Net increase in cash and cash equivalents		2,733						2,733
Cash and cash equivalents at beginning of year		3,614			—			3,614
Cash and cash equivalents at end of year	$	6,347		$	—		$	6,347