-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H6C4b/eW+dH/fKq74m8vXa0cFP6zwjCyIJOHgZul2YVRFf22HmHz1dZZE7Fwz7R3 Hm5rCkygsyhOtmCn1YhOoQ== 0000950116-99-001545.txt : 19990816 0000950116-99-001545.hdr.sgml : 19990816 ACCESSION NUMBER: 0000950116-99-001545 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARITRANS INC /DE/ CENTRAL INDEX KEY: 0000810113 STANDARD INDUSTRIAL CLASSIFICATION: WATER TRANSPORTATION [4400] IRS NUMBER: 510343903 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09063 FILM NUMBER: 99687719 BUSINESS ADDRESS: STREET 1: ONE LOGAN SQUARE 26TH FLOOR CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2158641200 MAIL ADDRESS: STREET 1: ONE LOGAN SQUARE STREET 2: 26TH FL CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: MARITRANS PARTNERS L P DATE OF NAME CHANGE: 19920703 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities - --- Exchange Act of 1934 For the Quarterly Period ended June 30, 1999 ------------- or Transition Report Pursuant to Section 13 or 15(d) of the Securities - --- Exchange Act of 1934 For the Transition Period from to ------------ ------------ Commission File Number 1-9063 -------- MARITRANS INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 51-0343903 - -------------------------------- ------------------- (State or other jurisdiction of (Identification No. incorporation or organization) I.R.S. Employer) 1818 MARKET STREET, SUITE 3540 PHILADELPHIA, PENNSYLVANIA 19103 ---------------------------------------- (Address of principal executive offices) (Zip Code) (215) 864-1200 -------------------------------------------------- Registrant's telephone number, including area code Not Applicable ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. Yes X No ----- ---- Common Stock $.01 par value, 11,968,890 shares outstanding as of August 2, 1999 1 MARITRANS INC. INDEX
Page ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets - June 30, 1999 and December 31, 1998 3 Condensed Consolidated Statements of Income - Three months ended June 30, 1999 and 1998 4 Condensed Consolidated Statements of Income - Six months ended June 30, 1999 and 1998 5 Condensed Consolidated Statements of Cash Flows - Six months ended June 30, 1999 and 1998 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. OTHER INFORMATION Item 1. Legal Proceedings 15 Item 6. Exhibits and Reports on Form 8-K 16 SIGNATURES 17
2 PART I: FINANCIAL INFORMATION MARITRANS INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($000)
June 30, December 31, 1999 1998 --------- ------------ (Unaudited) (Note 1) ASSETS Current assets: Cash and cash equivalents $ 8,102 $ 1,214 Trade accounts receivables 13,990 18,030 Other accounts receivable 7,526 9,434 Inventories 4,432 4,656 Deferred income tax benefit 4,902 4,627 Prepaid expenses 3,836 3,479 -------- -------- Total current assets 42,788 41,440 Vessels, terminals and equipment 350,985 358,197 Less accumulated depreciation 159,468 151,506 -------- -------- Net vessels, terminals and equipment 191,517 206,691 Other 6,185 6,775 -------- -------- Total assets $240,490 $254,906 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Debt due within one year $ 7,700 $ 11,873 Trade accounts payable 1,841 1,856 Accrued interest 1,205 1,351 Accrued shipyard cost 8,061 7,413 Accrued wages and benefits 4,572 3,559 Other accrued liabilities 7,838 8,559 -------- -------- Total current liabilities 31,217 34,611 Long-term debt 69,900 83,400 Deferred shipyard costs 12,091 11,119 Other liabilities 5,475 5,107 Deferred income taxes 32,699 30,854 Stockholders' equity 89,108 89,815 -------- -------- Total liabilities and stockholders' equity $240,490 $254,906 ======== ========
See notes to financial statements. 3 MARITRANS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) ($000, except per share amounts)
April 1 to April 1 to June 30, 1999 June 30, 1998 ------------- ------------- Revenues $ 39,834 $ 38,137 Costs and expenses: Operation expense 21,999 21,426 Maintenance expense 7,433 6,036 General and administrative 2,493 2,295 Depreciation and amortization 5,129 4,868 -------- -------- Total operating expense 37,054 34,625 -------- -------- Operating income 2,780 3,512 Interest expense (1,614) (1,623) Other income, net 290 231 -------- -------- Income before income taxes 1,456 2,120 Income tax provision 556 795 -------- -------- Net income $ 900 $ 1,325 ======== ======== Basic and diluted earnings per share $ 0.08 $ 0.11 Dividends declared per share $ 0.10 $ 0.09
See notes to financial statements. 4 MARITRANS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) ($000, except per share amounts)
January 1 to January 1 to June 30, 1999 June 30, 1998 ------------- ------------- Revenues $ 78,232 $ 73,967 Costs and expenses: Operation expense 43,974 41,078 Maintenance expense 14,912 12,452 General and administrative 4,822 4,684 Depreciation and amortization 10,289 9,501 -------- -------- Total operating expense 73,997 67,715 -------- -------- Operating income 4,235 6,252 Interest expense (3,547) (3,518) Other income, net 4,142 538 -------- -------- Income before income taxes 4,830 3,272 Income tax provision 1,845 1,227 -------- -------- Net income $ 2,985 $ 2,045 ======== ======== Basic and diluted earnings per share $ 0.25 $ 0.17 Dividends declared per share $ 0.20 $ 0.18
See notes to financial statements. 5 MARITRANS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) ($000)
Six Months Ended June 30, 1999 1998 -------- -------- Cash flows from operating activities: Net income $ 2,985 $ 2,045 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 10,289 9,501 Deferred income tax provision 1,570 (1,334) Stock compensation 396 308 Changes in receivables, inventories, and prepaid expenses 5,815 (2,214) Changes in current liabilities, other than debt 779 (1,239) Non-current changes, net 1,735 794 (Gain) loss on sale of fixed assets (3,970) -- -------- -------- 16,614 5,816 -------- -------- Net cash provided by operating activities 19,599 7,861 Cash flows from investing activities: Proceeds from litigation settlement -- 1,025 Cash proceeds from sale of equipment 11,458 -- Purchase of vessels, terminals and equipment (2,408) (5,838) -------- -------- Net cash provided by (used in) investing activities 9,050 (4,813) -------- -------- Cash flows from financing activities: Payment of long-term debt (7,100) (15,823) Borrowings under revolving credit facility 14,908 10,000 Repayments of borrowing under revolving credit facilities (25,481) -- Purchase of treasury stock (1,658) -- Dividends declared and paid (2,430) (2,179) -------- -------- Net cash provided by (used in) financing activities (21,761) (8,002) -------- -------- Net increase (decrease) in cash and cash equivalents 6,888 (4,954) Cash and cash equivalents at beginning of period 1,214 13,312 -------- -------- Cash and cash equivalents at end of period $ 8,102 $ 8,358 ======== ========
See notes to financial statements 6 MARITRANS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1999 1. Basis of Presentation/Organization Maritrans Inc. owns Maritrans Operating Partners L.P. ("the Operating Partnership"), Maritrans General Partner Inc., Maritrans Tankers Inc., Maritrans Barge Co., Maritrans Holdings Inc. and other Maritrans entities (collectively, the "Company"). These subsidiaries, directly and indirectly, own and operate oil tankers, tugboats, and oceangoing petroleum tank barges principally used in the transportation of oil and related products, along the Gulf and Atlantic Coasts, and own and operate petroleum storage facilities on the Atlantic Coast. In the opinion of management, the accompanying condensed consolidated financial statements of Maritrans Inc., which are unaudited (except for the Condensed Consolidated Balance Sheet as of December 31, 1998, which is derived from audited financial statements), include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial statements of the consolidated entities. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Pursuant to the rules and regulations of the Securities and Exchange Commission, the unaudited condensed consolidated financial statements do not include all of the information and notes normally included with annual financial statements prepared in accordance with generally accepted accounting principles. These financial statements should be read in conjunction with the consolidated historical financial statements and notes thereto included in the Company's Form 10-K for the period ended December 31, 1998. 7 2. Earnings per Common Share The following data show the amounts used in computing basic and diluted earnings per share ("EPS"):
Three Months Ended Six Months Ended June 30, June 30, 1999 1998 1999 1998 ---- ---- ---- ---- (000's) (000's) Income available to common stockholders used in basic EPS $ 900 $ 1,325 $ 2,985 $ 2,045 Weighted average number of common shares used in basic EPS 11,788 12,105 11,902 12,075 Effect of dilutive securities: Stock options and restricted shares 132 244 125 250 Weighted number of common shares and dilutive potential common stock used in diluted EPS 11,920 12,349 12,027 12,325
3. Income Taxes The Company's effective tax rate differs from the federal statutory rate due primarily to state income taxes. 4. Gain on Sale of Assets In the first quarter of 1999, the Company sold five vessels that were no longer deemed core to the Company's operations. The vessels consisted of two tug and barge units that were working in Puerto Rico and a tugboat working in the Atlantic Coast. The gain on the sale of these assets, net of noncash adjustments, was $3.7 million and is included in other income. 5. Share Buyback Program On February 9, 1999, the Board of Directors authorized a share buyback program for the acquisition of up to 1 million shares of the Company's common stock. This amount represents approximately 8 percent of the 12.1 million shares outstanding at the beginning of the program. As of June 30, 1999, 281,900 shares have been repurchased under the plan and have been financed from internally generated funds. Maritrans intends to hold the majority of the shares as treasury stock, some of which may be used for employee compensation plans, acquisition currency, and/or other corporate purposes. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Three Month Comparison Revenue in the second quarter of 1999 increased over the second quarter of 1998. Although barrels of cargo transported decreased from 66.6 million to 65.9 million, vessel utilization increased. Overall vessel utilization, including changes in the fleet, as measured by revenue days divided by calendar days available, increased from 80.2 percent in the second quarter of 1998 to 83.4 percent in the second quarter of 1999. The majority of this increased utilization was a result of the Company's high level of contract business. Additionally, there were refinery disruptions which created temporary opportunties to more refined oil from the Gulf of Mexico to the West Coast. Revenues also increased due to the addition of a 260,000 barrel oil tanker to the fleet late in 1998. Total operating expenses increased in the second quarter of 1999 compared to the second quarter of 1998 due to the addition of the 260,000 barrel oil tanker to the Gulf of Mexico fleet discussed above. Additionally, crew costs increased as a result of training costs and as a result of vessels manned and utilized in 1999, which were out of service for maintenance in the corresponding period of 1998. Offsetting some of the increase in operating expense was the sale of two tug and barge units operating in Puerto Rico in the first quarter of 1999. In addition, in the second quarter of 1998, the Company chartered in outside oil transportation capacity to cover contract commitments due to a heavy maintenance schedule, which did not occur in the corresponding period of 1999. Operating income decreased as a result of the aforementioned changes in revenue and expenses. Net income for the second quarter of 1999 decreased compared to the second quarter of 1998 due to the aforementioned changes in revenue and expenses. 9 Six Month Comparison Revenue in the first six months of 1999 increased over the same period of 1998. Although barrels of cargo transported decreased from 128.6 million to 128.3 million, vessel utilization increased. Overall vessel utilization, including changes in the fleet, as measured by revenue days divided by calendar days available, increased from 80.7 percent in the first half of 1998 to 82.3 percent for the first half of 1999. The main factors of the revenue increase were the addition of a 260,000 barrel oil tanker to the fleet in the second half of 1998, a high level of contract business and a temporary increase in vessel demand due to refinery disruptions on the West Coast. These increases were offset by the reduction in revenue and in barrels transported because two units operating in Puerto Rico were sold in the first quarter of 1999. Utilization in the current year has been negatively affected by a shortage of qualified marine personnel. The Company has hired qualified personnel to fill the open positions, thereby lessening the impact of the shortage discussed in the first quarter of 1999. Total operating expenses increased in the first six months of 1999 compared to the first six months of 1998 due to the addition of a 260,000 barrel oil tanker to the Gulf of Mexico fleet, costs associated with the shortage of qualified seagoing personnel both from the third party chartered tugboats and training costs, and crew costs for vessels in the shipyard in 1998, which returned to service in 1999. These increases were offset by the sale of the two tug and barge units used in the Puerto Rico operations. Operating income decreased as a result of the aforementioned changes in revenue and expenses. Other income for the first quarter of 1999 includes a gain of $3.7 million, net of noncash adjustments, on the disposition of five vessels that were no longer deemed core to the Company's operations. The vessels consisted of two tug and barge units, which were working in Puerto Rico and a tugboat working in the Atlantic Coast. The total vessels sold represent less than 3% of the Company's cargo carrying capacity. Net income for the first six months of 1999 increased compared to the first six months of 1998 due to the gain on the sale of assets discussed above, offset by the aforementioned changes in revenue and expenses. Management expects conditions in the Company's main markets to continue to be very competitive as additional vessels are being introduced into the market by Maritrans' competitors. Additionally, the recent trend of mergers, acquisitions and consolidations among major oil companies that purchase both the Company's and its competitors services is likely to continue to exert downward pressure on market rates in general. Liquidity and Capital Resources For the six months ended June 30, 1999, funds provided by operating activities were sufficient to meet debt service obligations and loan agreement restrictions, to make capital acquisitions and improvements and to allow Maritrans to pay a dividend of $0.10 per common share in the current quarter. Dividend payments are expected to continue quarterly in 1999. The ratio of total debt to the sum of total debt and stockholders equity is .47 at June 30, 1999. 10 Management believes that in 1999 funds provided by operating activities, augmented by financing and investing transactions, will be sufficient to provide funds necessary for operations, anticipated capital expenditures, lease payments, dividend payments and required debt repayments. On February 9, 1999, the Board of Directors authorized a share buyback program for the acquisition of up to 1 million shares of the Company's common stock. This amount represents approximately 8 percent of the 12.1 million shares outstanding at the beginning of the program. As of June 30, 1999, 281,900 shares have been repurchased under the plan and have been financed from internally generated funds. Maritrans intends to hold the majority of the shares as treasury stock, some of which may be used for employee compensation plans, acquisition currency, and/or other corporate purposes. On July 30, 1999, the Company awarded a contract to rebuild a second large single hull barge, the OCEAN 244, to a double hull configuration. The project will begin early in the second quarter of 2000 and have a total cost of approximately $12 million. Prefabrication work will begin immediately, with interim payments being made to the shipyard contractor in the second half of 1999. The Company expects to finance this project from internally generated funds. In August 1999, the Company entered into an agreement to convert a tugboat charter agreement to a purchase agreement. The Company will expend approximately $2.5 million in the third quarter of 1999 and will continue payments of approximately $76 thousand per month, for sixty-five months to the former charterers under a note agreement with that party. Debt Obligations and Borrowing Facility At June 30, 1999, the Company had $77.6 million in total outstanding debt, secured by mortgages on most of the fixed assets of the Company. The current portion of this debt at June 30, 1999 was $7.7 million. The Company has a $10 million working capital facility, secured by its receivables and inventories. At June 30, 1999, there is no balance outstanding under this facility, although the Company utilizes this facility from time to time. The Company recently renewed this facility through June of 2000. In 1997, Maritrans entered into a multi-year revolving credit facility for amounts up to $33 million with Mellon Bank, N.A. This facility is collateralized by mortgages on tankers acquired in 1998 and 1997. At June 30, 1999, $22 million was outstanding under this facility. 11 Impact of Year 2000 Some of the Company's older computer programs and embedded computer components suffer from Year 2000 incompatibilities. If left unchanged, this may cause a system failure or miscalculations causing disruptions in operations, including, among other things, the inability to operate vessel systems, a temporary inability to process transactions, to send invoices, or to engage in normal similar business activities. Following is a brief description of the tasks incorporated in the Company's Year 2000 effort: Software Inventory: List all custom software components that may have a dependency on Year 2000. Software Assessment: Analyze each software component to determine if a Year 2000 dependency exists; if so then determine magnitude of impact and effort for remediation. Prioritize remediation efforts. Software Remediation: Implement corrections or develop alternative plans to work around the problem. Imbedded Systems Inventory: Develop a list of all devices which contain embedded computer chips, such as radars, the Global Positioning System, rudder controls, engine controls and truck rack monitors. Imbedded Systems Assessment: Work with the individual manufacturing companies to identify any problems with specific devices. Conduct independent tests to identify any possible problems. Imbedded Systems Remediation: Work with the manufacturing companies to implement replacement or work around plans. Collaborate with other companies that have the same dependencies to reduce cost and increase effectiveness. Service Provider Assessment: Verify that service providers are investigating their own Year 2000 problems and that the Company's interactions with them are Year 2000 compliant. Identify key service providers and conduct in-depth analyses to verify that service to Maritrans will not be impacted. Customer Assessment: Verify that customers are proceeding with their own Year 2000 efforts. Collaborate with the customers to ensure that both parties have a smooth transition into the new millennium. Contingency Planning: Identify and document contingency plans for core business processes. The Company completed an assessment of its business computing systems, commercial off-the-shelf systems, and embedded systems and has developed new software programs and replaced commercial systems to take advantage of newer technologies. As a result of this initiative, the Company believes its business operating systems, critical embedded systems, and commercial off-the-shelf systems are Year 2000 compliant. 12 For the Company's less critical commercial vessel systems' embedded components, the Company is working closely with the manufacturers to verify compliance and is proceeding with remediation efforts. The Company is collaborating with its key service providers and customers to ensure their Year 2000 efforts will identify and address common risks as well as developing contingency plans where necessary. The Company's major customers do not expect to incur major disruptions in the need for services due to any Year 2000 issues. While the Company has completed its major efforts in assessing its business partners, it will continue collaboration efforts to ensure a smooth transition into Year 2000. However, there can be no assurances that the companies with which the Company does business will achieve a Year 2000 conversion in a timely fashion, or that such failure to convert by another company will not have a material adverse effect on Maritrans. The Company's contingency planning effort has identified critical business processes and the Year 2000 dependencies that these processes may have. The Company has prioritized these processes and developed contingency plans to eliminate or manage any Year 2000 failures that may occur. These contingency plans consider the internal systems and facilities, customer and supplier readiness, and infrastructure concerns. The Company has completed a majority of its contingency planning efforts but plans on continuing its testing and fine-tuning of these plans up through the end of 1999. The Company believes that with the conversions to new software, the Year 2000 issue will not pose significant operational problems for its business computing systems. The Company believes that with its program of verifying vessel systems with manufacturers and replacing any non-compliant systems, the Year 2000 issue will not pose significant operational problems. Due to the fact that there is little standardization of equipment types aboard the vessels, the Company also believes that if such verifications are faulty or if replacements are not completed on time, these isolated problems will not have a material adverse affect on operations. Completion of the Company's Year 2000 efforts does not guarantee that Year 2000 will not have a material adverse effect on the Company. The Company believes that the most reasonably likely worst case Year 2000 scenario would be that some of the customers' supply chains would be disrupted. This would cause fewer barrels to be moved, interruption of normal distribution patterns, and/or inability to transfer product, possibly leaving the vessels empty and crippling the delivery system. In this event, the Company expects less than half of the fleet would be impacted with a maximum of 5-day delays for product loading. Vessels attempting to discharge would be rerouted to other ports or customers and thus it is believed, not incur significant delays. As part of the contingency planning efforts, the Company is addressing this specific issue internally and with customers to reduce the likelihood and impact of this scenario. 13 The total cost of the Company's Year 2000 remediation efforts is expected to be $0.6 million, with approximately $0.1 million to be incurred during the remainder of the project. This amount is being financed from internally generated funds. The costs of the project and the date on which the Company believes it will complete the Year 2000 conversions are based on management's best estimates. However, there can be no guarantees that these estimates will be achieved and actual results could differ materially from those anticipated. Specific factors that might cause material differences include, but are not limited to, the availability and cost of personnel trained in this area, the ability to upgrade all relevant operating systems, and similar uncertainties. Forward Looking Information In this report, the statements contained or incorporated by reference that are not historical facts or statements of current condition are forward-looking statements. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes", "expects", "forecasts", "will" or "anticipates", or the negative thereof or other variations thereon or comparable terminology, or by discussion of strategies or intentions. These forward-looking statements, such as statements regarding present or anticipated utilization, future revenues and customer relationships, capital expenditures, future financings and other statements regarding matters that are not historical facts, involve predictions. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Potential risks and uncertainties that could affect the Company's actual results, performance or achievements include, but are not limited to, the factors outlined in the Company's Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 1998 and general financial, economic, environmental and regulatory conditions affecting the oil and marine transportation industry in general. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements. Furthermore, the Company disclaims any obligation or intent to update any such factors or forward-looking statements to reflect future events or developments. 14 Part II: OTHER INFORMATION ITEM 1. Legal Proceedings In Maritrans Inc., et al v. United States, Maritrans sued the United States in 1996 alleging that the double hull requirement of the Oil Pollution Act of 1990 ("OPA") which requires retirement of Maritrans' fleet of single-hulled barges, is a "taking" under the fifth amendment to the U.S. Constitution. Maritrans is seeking in excess of $250 million in compensation for this taking. A trial was held in July 1997 on the preliminary issue of whether Maritrans had a cognizable property interest that could be subject to taking. In an Order dated October 29, 1997, the United States Court of Federal Claims held that, at the time Maritrans built or acquired its single-hulled tank barges, it could not have reasonably anticipated that double hulls would be required within the working lifetime of the vessels. This Order cleared the way for further proceedings which will determine whether OPA's double-hull requirements constitute a taking, and, if so, the amount of compensation to be paid to Maritrans. The written opinion of this Order was handed down on April 24, 1998. In May 1998, the United States filed a Motion for Reconsideration, which was denied by the Court some weeks later. Subsequently, also in May, the United States filed a further Motion for Summary Judgment. On March 11, 1999, the United States Court of Federal Claims ("the Court") dismissed Maritrans' suit in response to the Motion for Summary Judgment, deciding essentially that the Company's cause of action is not yet ripe for judicial determination because Maritrans' vessels have not yet been forced out of service by OPA's phase-out provisions. The Court determined that since the vessels are continuing to generate income, the Company has not suffered the degree of economic harm sufficient to constitute a Fifth Amendment taking. Maritrans, by Motion of March 22, 1999, asked the Court to reconsider its dismissal. On April 30, 1999, following a hearing, the Court did order the case reinstated on its trial docket as to a portion of the vessels within the Maritrans fleet. The parties have been engaged in efforts to agree upon trial scheduling. On July 20, 1999, the United States filed a motion asking that the Court certify various issues to the Court of Appeals for the Federal Circuit. On August 2, 1999, Maritrans filed a Motion with the Court in opposition to that filed by the United States. The Court's response to these Motions has not yet been received. 15 ITEM 6. Exhibits and Reports on Form 8-K (a) Exhibits No. 27 - Financial Data Schedule. (b) Reports on Form 8-K (1) No reports on Form 8-K were filed during the quarter ended June 30, 1999. 16 SIGNATURES 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 thereunto duly authorized. MARITRANS INC. (Registrant) By: /s/ H. William Brown Dated: August 13, 1999 ----------------------------------- H. William Brown Chief Financial Officer (Principal Financial Officer) By: /s/ Walter T. Bromfield Dated: August 13, 1999 ----------------------------------- Walter T. Bromfield Treasurer and Controller (Principal Accounting Officer) 17 EXHIBIT INDEX Exhibit Page Number - ------- ----------- 27 Financial Data Schedule -- 18 EX-27 2
5 6-MOS DEC-31-1999 JAN-01-1999 JUN-30-1999 8,102 0 15,496 1,506 4,432 42,788 350,985 159,468 240,490 31,217 69,900 0 0 132 88,976 240,490 0 78,232 0 73,997 0 0 3,547 4,830 1,845 2,985 0 0 0 2,985 .25 .25
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