EX-99 3 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 [Graphic Omitted] MARITRANS 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 (610) 595-8055 NEWS RELEASE FOR IMMEDIATE RELEASE MARITRANS REPORTS FIRST QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND TAMPA, FL - (April 29, 2003) - Maritrans Inc. (NYSE: TUG), a leading U.S. flag marine petroleum transport company, today announced its first quarter financial results, declared its quarterly dividend and announced its quarterly investor teleconference. Net income for the quarter ended March 31, 2003 was $3.2 million, or $0.37 diluted earnings per share, on revenues of $35.9 million. This compares with net income of $3.0 million, or $0.32 diluted earnings per share, on revenues of $31.3 million for the quarter ended March 31, 2002. On a Time Charter Equivalent (TCE) basis, a commonly used industry measure where direct voyage costs are deducted from revenue, TCE revenue increased 7 percent to $28.8 million for the quarter ended March 31, 2003, from $26.9 million in the comparable quarter in 2002. TCE revenue is a non-GAAP financial measure, and a reconciliation of TCE revenue to revenue calculated in accordance with GAAP is contained in the attached financial highlights. Maritrans also declared a quarterly dividend of $0.11 per share, payable on June 4, 2003, to shareholders of record on May 21, 2003. During the first quarter, the Company purchased 28,742 shares under its authorized share buyback program. Maritrans experienced high utilization in the first quarter of 2003. Customer demand for marine transportation in the Philadelphia refining area was particularly strong, which raised the volumes delivered in the period. Although the Venezuelan oil strike, refinery maintenance in the Gulf of Mexico region and imports from Europe held spot rates down in the first quarter, cold weather in the eastern United States and low distillate inventories continued to create demand for services throughout the Jones Act fleet. Changed requirements for octane enhancers in California have also increased demand for the transportation of additives and refined products from the Gulf of Mexico to the west coast. No vessels were out of service for rebuilding in the period, while the Maritrans 252 and her married tug were out of service for all of January 2002 completing their rebuild projects. The cost of fuel was significantly higher in the first quarter of 2003 compared to the first quarter of 2002, as a result of fuel price increases. MANAGEMENT'S COMMENTS Stephen A. Van Dyck, Chairman of Maritrans, commented, "We continue to look forward with optimism to the next several years. I am pleased with our -MORE- Maritrans Reports First Quarter Earnings and Declares Quarterly Dividend Page 2 April 29, 2003 first quarter results, and am confident that our team will continue to deliver for our customers and shareholders. When the barge Ocean States begins her double-hull rebuild this year, our program will pass its half-way mark for transforming our single-hull barges. We are also looking hard at our plans for the two single-hulled diesel tankers in our fleet, as we currently believe that we have an engineering solution for their conversion to OPA compliant double-hulled tankers in conjunction with their 2005 and 2006 OPA retirement dates." Philip J. Doherty, Chief Executive Officer of Maritrans, commented, "While we worked hard to deliver strong results in the first quarter, we will continue to keep our efforts focused as we move into our season of heavier maintenance and the related out-of-service time that this work entails." CONFERENCE CALL INFORMATION Maritrans management will host a conference call on Wednesday, April 30, 2003, at 2; 30 p.m. eastern time to discuss the Company's first quarter results. To access this call, please dial 1-800-547-9328. A replay of the call may be accessed by dialing 1-800-633-8284 and will be available from 4:30 pm eastern time on Wednesday, April 30, 2003, to 5:00 pm eastern time on Monday, May 5, 2003 and providing the reservation number 21140549. The conference call will also be webcast live on Maritrans' website, www.maritrans.com, and will be available on the website through Wednesday, May 7, 2003. ABOUT MARITRANS Maritrans Inc. is a U.S. based company with a 75-year commitment to building and operating petroleum transport vessels for the U.S. domestic trade. Maritrans owns and operates one of the largest fleets serving the U.S. coastwise trade. The Maritrans fleet currently consists of four oil tankers and eleven oceangoing married tug/barge units with an aggregate fleet capacity of approximately 3.6 million barrels. Nearly 60 percent of its capacity is double-hulled. Maritrans is headquartered in Tampa, Florida, and maintains an office in the Philadelphia area that supports the Company's Northeast crude oil lightering operations. The common stock of Maritrans Inc. is listed on the New York Stock Exchange under the symbol "TUG." SAFE HARBOR STATEMENT The information in this news release includes certain forward-looking statements. 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 that expressed in or implied by such forward-looking statements. These statements are based on assumptions the Company believes are reasonable, but a variety of factors could cause the Company's actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecast, estimated, anticipated, planned or budgeted. Such factors include, among others, changes in oil companies' decisions as to the type and origination point of the crude that it processes, changes in the amount of imported petroleum products, competition for marine transportation, domestic oil consumption, the continuation of federal law restricting United States point-to-point maritime shipping to U.S. vessels (the Jones Act), demand for petroleum products, future spot market rates, changes in interest rates, the effect of war or terrorists activities and the general financial, economic, environmental and regulatory conditions affecting the oil and marine transportation industry in general. -MORE- Maritrans Reports First Quarter Earnings and Declares Quarterly Dividend Page 3 April 29, 2003 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS (In Thousands, Except Per Share Amounts) Three Months Ended March 31, 2003 2002 -------- -------- Voyage Revenue $ 35,929 $ 31,323 Voyage Costs 7,085 4,381 Time Charter Equivalent 28,844 26,942 Operating Expense 11,795 11,251 Maintenance 4,330 3,824 G & A 2,165 1,935 Depreciation 5,111 4,621 Operating Income 5,443 5,311 Other Income 211 226 Interest Expense 608 806 Income Tax Provision 1,867 1,774 Net Income $ 3,179 $ 2,957 Diluted Earnings Per Share $ 0.37 $ 0.32 Diluted Shares Outstanding 8,516 9,184 Capital Expenditures $ 3,841 $ 4,634 Utilization of Calendar days 89.5% 82.8% CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION ($Thousands)
March 31, 2003 December 31, 2002 -------------- ----------------- Cash and cash equivalents $ 2,392 $ 239 Other current assets 26,189 26,577 Net vessels and equipment 175,591 176,861 Other assets 7,567 7,880 Total assets $ 211,739 $ 211,557 Total current liabilities $ 22,863 $ 18,999 Long-term debt 56,000 63,000 Deferred shipyard costs and other 11,970 10,739 Deferred income taxes 49,432 49,432 Stockholders' equity 71,474 69,387 Total liabilities and stockholders' equity $ 211,739 $ 211,557
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