Edgar Filing: GENCO SHIPPING & TRADING LTD

kl05009.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2009

[ ]	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 000-51442

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

Republic of the Marshall Islands (State or other jurisdiction of incorporation or organization)		98-043-9758 (I.R.S. Employer Identification No.)

299 Park Avenue, 20th Floor, New York, New York 10171 (Address of principal executive offices) (Zip Code)

(646) 443-8550 (Registrant’s telephone number, including area code)

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 filing requirements for the past 90 days.

Yes ý No r

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes r No r

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer r

Non-accelerated filer  (Do not check if a smaller reporting company) Smaller reporting company 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes r No ý

The number of shares outstanding of each of the issuer’s classes of common stock, as of May 11, 2009:

Common stock, $0.01 per share 31,709,548 shares.

Genco Shipping & Trading Limited

Form 10-Q for the three months ended March 31, 2009 and 2008

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

Consolidated Balance Sheets -

March 31, 2009 and December 31, 2008

Consolidated Statements of Operations -

For the three months ended March 31, 2009 and 2008

Consolidated Statements of Shareholders’ Equity and Comprehensive Income -

For the three months ended March 31, 2009 and 2008

Consolidated Statements of Cash Flows -

For the three months ended March 31, 2009 and 2008

Notes to Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Item 2.

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 5.

Other Information

Item 6.

Exhibits

Genco Shipping & Trading Limited

Consolidated Balance Sheets as of March 31, 2009

and December 31, 2008

(U.S. Dollars in thousands, except for share data)

	March 31, 2009			December 31, 2008
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	175,785		$	124,956
Due from charterers, net of a reserve of $124 and $244, respectively		1,147			2,297
Prepaid expenses and other current assets		16,907			13,495
Total current assets		193,839			140,748

Noncurrent assets:
Vessels, net of accumulated depreciation of $160,296 and $140,388, respectively		1,706,724			1,726,273
Deposits on vessels		91,016			90,555
Deferred drydock, net of accumulated depreciation of $2,881 and $2,868, respectively		8,849			8,972
Other assets, net of accumulated amortization of $1,778 and $1,548, respectively		8,295			4,974
Fixed assets, net of accumulated depreciation and amortization of $1,222 and $1,140, respectively		1,833			1,712
Fair value of derivative instruments		294			—
Investments		23,035			16,772
Total noncurrent assets		1,840,046			1,849,258

Total assets	$	2,033,885		$	1,990,006

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	18,322		$	17,345
Deferred revenue		8,808			10,356
Fair value of derivative instruments		1,922			2,491
Total current liabilities		29,052			30,192

Noncurrent liabilities:
Deferred revenue		2,427			2,298
Deferred rent credit		701			706
Fair market value of time charters acquired		18,878			23,586
Fair value of derivative instruments		60,032			63,446
Long-term debt		1,173,300			1,173,300
Total noncurrent liabilities		1,255,338			1,263,336

Total liabilities		1,284,390			1,293,528

Commitments and contingencies

Shareholders’ equity:
Common stock, par value $0.01; 100,000,000 shares authorized; issued and outstanding 31,709,548 and 31,709,548 shares at March 31, 2009 and December 31, 2008, respectively		317			317
Paid-in capital		719,211			717,979
Accumulated other comprehensive deficit		(55,470	)		(66,014	)
Retained earnings		85,437			44,196
Total shareholders’ equity		749,495			696,478

Total liabilities and shareholders’ equity	$	2,033,885		$	1,990,006
See accompanying notes to consolidated financial statements.

Genco Shipping & Trading Limited

Consolidated Statements of Operations for the Three Months Ended March 31, 2009 and 2008

(U.S. Dollars in Thousands, Except for Earnings per Share and Share Data)

(Unaudited)

	For the Three Months Ended March 31,
	2009			2008

Revenues	$	96,650		$	91,669

Operating expenses:
Voyage expenses		1,579			744
Vessel operating expenses		14,202			10,919
General and administrative expenses		3,893			4,411
Management fees		879			672
Depreciation and amortization		20,949			15,864
Gain on sale of vessel		—			(26,227	)

Total operating expenses		41,502			6,383

Operating income		55,148			85,286

Other (expense) income:
Other income (expense)		18			(64	)
Interest income		23			552
Interest expense		(13,948	)		(11,787	)

Other expense		(13,907	)		(11,299	)

Net income	$	41,241		$	73,987

Earnings per share-basic	$	1.32		$	2.57
Earnings per share-diluted	$	1.32		$	2.56
Weighted average common shares outstanding-basic		31,260,482			28,733,928
Weighted average common shares outstanding-diluted		31,351,390			28,914,350
Dividends declared per share	$	—		$	0.85

Genco Shipping & Trading Limited

Consolidated Statement of Shareholders’ Equity and Comprehensive Income (Unaudited)

For the Three Months Ended March 31, 2009

(U.S. Dollars in Thousands Except for Per Share and Share Data)

	Common Stock		Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Deficit			Comprehensive Income		Total
Balance – January 1, 2009		$317		$717,979		$44,196		($66,014	)				$696,478

Net income						41,241					$41,241		41,241

Unrealized gain on investments								5,544			5,544		5,544

Unrealized gain on currency translation on investments, net								719			719		719

Unrealized derivative gain on cash flow hedges								4,281			4,281		4,281

Comprehensive income											$51,785

Nonvested stock amortization				1,232									1,232

Balance – March 31, 2009		$317		$719,211		$85,437		($55,470	)				$749,495

See accompanying notes to consolidated financial statements.

Genco Shipping & Trading Limited

Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2009 and 2008

(U.S. Dollars in Thousands)

(Unaudited)

	For the Three Months Ended March 31,
	2009			2008
Cash flows from operating activities:
Net income	$	41,241		$	73,987
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,949			15,864
Amortization of deferred financing costs		230			191
Amortization of fair market value of time charterers acquired		(4,708	)		(6,849	)
Realized losses on forward currency contracts		-			11,473
Unrealized loss (gain) on derivative instruments		4			(45	)
Unrealized gain on hedged investment		-			(9,668	)
Unrealized gain on forward currency contracts		-			(1,678	)
Amortization of nonvested stock compensation expense		1,232			1,588
Gain on sale of vessels		-			(26,227	)
Change in assets and liabilities:
Decrease (increase) in due from charterers		1,150			(353	)
Increase in prepaid expenses and other current assets		(3,236	)		(1,808	)
Increase (decrease) in accounts payable and accrued expenses		885			(804	)
(Decrease) increase in deferred revenue		(1,419	)		551
Decrease in deferred rent credit		(5	)		(5	)
Deferred drydock costs incurred		(837	)		(506	)

Net cash provided by operating activities		55,486			55,711

Cash flows from investing activities:
Purchase of vessels		(473	)		(153,276	)
Deposits on vessels		(695	)		(463	)
Purchase of investments		-			(10,250	)
Payments on forward currency contracts, net		-			(11,428	)
Proceeds from sale of vessels		-			43,080
Purchase of other fixed assets		(45	)		(14	)

Net cash used in investing activities		(1,213	)		(132,351	)

Cash flows from financing activities:
Proceeds from 2007 Credit Facility		-			151,500
Repayments on the 2007 Credit Facility		-			(73,000	)
Cash dividends paid		-			(24,717	)
Payment of deferred financing costs		(3,444	)		(344	)

Net cash (used in) provided by financing activities		(3,444	)		53,439

Net increase (decrease) in cash and cash equivalents		50,829			(23,201	)

Cash and cash equivalents at beginning of period		124,956			71,496

Cash and cash equivalents at end of period	$	175,785		$	48,295

See accompanying notes to consolidated financial statements.

Genco Shipping & Trading Limited

(U.S. Dollars in Thousands Except Per Share and Share Data)

Notes to Consolidated Financial Statements for the Three Months Ended March 31, 2009 and 2008 (unaudited)

1 - GENERAL INFORMATION

The accompanying consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its wholly owned subsidiaries (collectively, the “Company,” “we” or “us”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T was incorporated on September 27, 2004 under the laws of the Marshall Islands and is the sole owner of all of the outstanding shares of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; and the ship-owning subsidiaries as set forth below.


Below is the list of the Company’s wholly owned ship-owning subsidiaries as of March 31, 2009:


Wholly Owned Subsidiaries	Vessels Acquired	Dwt	Date Delivered	Year Built

Genco Reliance Limited............................	Genco Reliance	29,952	12/6/04	1999
Genco Vigour Limited...............................	Genco Vigour	73,941	12/15/04	1999
Genco Explorer Limited............................	Genco Explorer	29,952	12/17/04	1999
Genco Carrier Limited...............................	Genco Carrier	47,180	12/28/04	1998
Genco Sugar Limited................................	Genco Sugar	29,952	12/30/04	1998
Genco Pioneer Limited.............................	Genco Pioneer	29,952	1/4/05	1999
Genco Progress Limited..........................	Genco Progress	29,952	1/12/05	1999
Genco Wisdom Limited...........................	Genco Wisdom	47,180	1/13/05	1997
Genco Success Limited...........................	Genco Success	47,186	1/31/05	1997
Genco Beauty Limited.............................	Genco Beauty	73,941	2/7/05	1999
Genco Knight Limited.............................	Genco Knight	73,941	2/16/05	1999
Genco Leader Limited.............................	Genco Leader	73,941	2/16/05	1999
Genco Marine Limited............................	Genco Marine	45,222	3/29/05	1996
Genco Prosperity Limited......................	Genco Prosperity	47,180	4/4/05	1997
Genco Trader Limited............................	Genco Trader (1)	69,338	6/7/05	1990
Genco Muse Limited …………………	Genco Muse	48,913	10/14/05	2001
Genco Acheron Limited ……………..	Genco Acheron	72,495	11/7/06	1999
Genco Surprise Limited ……………..	Genco Surprise	72,495	11/17/06	1998
Genco Augustus Limited …………….	Genco Augustus	180,151	8/17/07	2007
Genco Tiberius Limited ……………..	Genco Tiberius	175,874	8/28/07	2007
Genco London Limited ………………	Genco London	177,833	9/28/07	2007
Genco Titus Limited …………….......	Genco Titus	177,729	11/15/07	2007
Genco Challenger Limited ………….	Genco Challenger	28,428	12/14/07	2003
Genco Charger Limited ……………..	Genco Charger	28,398	12/14/07	2005
Genco Warrior Limited …………….	Genco Warrior	55,435	12/17/07	2005
Genco Predator Limited …………….	Genco Predator	55,407	12/20/07	2005
Genco Hunter Limited ………………	Genco Hunter	58,729	12/20/07	2007
Genco Champion Limited …………..	Genco Champion	28,445	1/2/08	2006
Genco Constantine Limited …………	Genco Constantine	180,183	2/21/08	2008
Genco Raptor LLC…………………..	Genco Raptor	76,499	6/23/08	2007
Genco Cavalier LLC…………………	Genco Cavalier	53,617	7/17/08	2007
Genco Thunder LLC…………………	Genco Thunder	76,499	9/25/05	2007
Genco Hadrian Limited ……………..	Genco Hadrian	169,694	12/29/08	2008
Genco Commodus Limited …………	Genco Commodus	170,500	Q2 2009 (2)	2009 (3)
Genco Maximus Limited ……………	Genco Maximus	170,500	Q3 2009 (2)	2009 (3)
Genco Claudius Limited …………….	Genco Claudius	170,500	Q3 2009 (2)	2009 (3)

(1) Vessel was sold on 2/26/08.

(2) Dates for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.

(3) Built dates for vessels delivering in the future are estimates based on guidance received from the sellers and respective shipyards.

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which include the accounts of Genco Shipping & Trading Limited and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulation of the Securities and Exchange Commission (the “SEC”). In the opinion of management of the Company, all adjustments necessary for a fair presentation of financial position and operating results have been included in the statements. Interim results are not necessarily indicative of results for a full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Annual Report on our Form 10-K for the year ended December 31, 2008 (the “2008 10-K”).

Deferred revenue

Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues. As of March 31, 2009 and December 31, 2008, the Company had a reserve of $1,261 and $1,350, respectively, related to these estimated customer claims.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers and cash and cash equivalents. With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requiring letters of credit, guarantees or collateral. The Company earned 100% of its revenues from nineteen and fourteen customers for the three months ended March 31, 2009 and 2008, respectively. Management does not believe significant risk exists in connection with the Company’s concentrations of credit at March 31, 2009 and December 31, 2008.

For the three months ended March 31, 2009, there are two customers that individually accounted for more than 10% of revenue, Cargill International S.A. and Pacific Basin Chartering Ltd., which represented 29.50% and 15.36% of revenue, respectively. For the three months ended March 31, 2008, there were two customers that individually accounted for more than 10% of revenue, Cargill International S.A. and Pacific Basin Chartering Ltd., which represented 27.57% and 17.04% of revenue, respectively.

The Company maintains all of its cash with one financial institution. None of the Company's cash balances are covered by insurance in the event of default by this financial institution.

Derivative financial instruments

Interest rate risk management

The Company is exposed to interest rate risk due to the fluctuations in variable interest rates. The Company’s objective is to manage the impact of interest rate changes on its earnings and cash flow in relation to borrowings primarily for the purpose of acquiring drybulk vessels. These borrowings are subject to a variable borrowing rate. The Company uses pay-fixed receive-variable interest rate swaps to manage future interest costs and the risk associated with changing interest rate obligations. These swaps are designated as cash flow hedges of future variable rate interest payments and are tested for effectiveness on a quarterly basis.

The differential to be paid or received for any swap agreement designated as a cash flow hedge is recognized as an adjustment to interest expense as incurred. Additionally, the changes in value for the portion of the swaps that are effectively hedging future interest payments are reflected as a component of other comprehensive deficit (“OCI”).

For the portion of the forward interest rate swaps that are not effectively hedged, the change in the value and the rate differential to be paid or received is recognized as income or (expense) from derivative instruments and is listed as a component of other (expense) income until such time the Company has obligations against which the swap is designated and is an effective hedge.

New accounting pronouncements

In February 2008, the FASB issued FASB Staff Position (“FSP”) 157-2, which delays the effective date of SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157), to fiscal years beginning after November 15, 2008 and interim periods with those fiscal years for all nonfinancial assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually) until January 1, 2009 for calendar year end entities. The Company has already adopted this Statement except as it applies to nonfinancial assets and liabilities as noted in FSP 157-2. The adoption of FSP 157-2 did not have a material impact on the Company’s consolidated financial statements.

In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations” (“SFAS No. 141R”). SFAS No. 141R will significantly change the accounting for business combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value, with limited exceptions. SFAS No. 141R also includes a substantial number of new disclosure requirements and applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company adopted SFAS No. 141R effective January 1, 2009. As the provisions of SFAS No. 141R are applied prospectively, the impact to the Company cannot be determined until any such transactions occur.

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB statement 133” (“SFAS No. 161”). The new standard is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, results of operations and cash flows. The new standard also improves transparency about how and why a company uses derivative instruments and how derivative instruments and related hedged items are accounted for under SFAS No. 133. It is effective for financial statements issued for fiscal years and interim periods which began November 15, 2008, with early application encouraged. The Company adopted the provisions of SFAS No. 161 effective January 1, 2009. See Note 8 – Long-Term Debt for the Company’s disclosures about its derivative instruments and hedging activities.

3 - CASH FLOW INFORMATION

The Company currently has eleven interest rate swaps, and these swaps are described and discussed in Note 8 – Long-Term Debt. The fair value of ten of the swaps is in a liability position of $61,954, and one of the swaps is in an asset position of $294 as of March 31, 2009. At December 31, 2008, nine swaps were in a liability position of $65,937.

For the three months ended March 31, 2009, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in accounts payable and accrued expenses as of March 31, 2009 consisting of $359 for the purchase of vessels, $279 associated with deposits on vessels and $157 for the purchase of other fixed assets. For the three months ended March 31, 2009, the Company also had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in accounts payable and accrued expenses consisting of $107 associated with deferred financing costs. Additionally, for the three months ended March 31, 2009, the Company had items in prepaid expenses and other current assets consisting of $176 which reduced the deposits on vessels. For the three months ended March 31, 2008, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in accounts payable and accrued expenses as of March 31, 2008 consisting of $1,258 for the purchase of vessels, $596 associated with deposits on vessels, $23 for the purchase of other fixed assets, and $51 for the purchase of investments. For the three months ended March 31, 2008, the Company also had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items in accounts payable and accrued expenses as of March 31, 2008 consisting of $98 associated with deferred financing costs.

During the three months ended March 31, 2009 and 2008, the cash paid for interest, net of amounts capitalized, was $12,639 and $14,000, respectively.

On January 10, 2008, the Board of Directors approved a grant of 100,000 shares of nonvested common stock to Peter Georgiopoulos, Chairman of the Board. The fair value of such nonvested stock was $4,191 on the grant date and was recorded in equity. Additionally, on February 13, 2008, the Company made grants of nonvested common stock under the Plan in the amount of 12,500 shares to directors of the Company. The fair value of such nonvested stock was $689 on the grant dates and was recorded in equity.

4 - VESSEL ACQUISITIONS AND DISPOSITIONS

Below market time charters acquired were amortized as a net increase to revenue in the amounts of $4,708 and $6,849, respectively, for the three months ended March 31, 2009 and March 31, 2008.

Capitalized interest expense associated with newbuilding contracts for the three months ended March 31, 2009 and 2008 was $458 and $758, respectively.

5 –INVESTMENTS

The Company holds an investment in the capital stock of Jinhui Shipping and Transportation Limited (“Jinhui”). Jinhui is a drybulk shipping owner and operator focused on the Supramax segment of drybulk shipping. This investment is designated as Available For Sale (“AFS”) and is reported at fair value, with unrealized gains and losses recorded in shareholders’ equity as a component of OCI. At March 31, 2009 and December 31, 2008, the Company held 16,335,100 shares of Jinhui capital stock, respectively, which is recorded at its fair value of $23,035 and $16,772, respectively based on the closing price on March 31, 2009 and December 31, 2008 of 9.50 NOK and 7.14 NOK, respectively. Effective on August 16, 2007, the Company elected to utilize hedge accounting for forward contracts hedging the currency risk associated with the Norwegian Kroner cost basis in the Jinhui stock. The hedge was limited to the lower of the cost basis or the market value at time of the designation. The unrealized appreciation in the stock and the currency translation gain above the cost basis are recorded as a component of OCI. Realized gains and losses on the sale of these securities will be reflected in the consolidated statement of operations in other (expense) income once sold. Time value of the forward contracts are excluded from effectiveness testing and recognized in income. For the three months ended March 31, 2008, an immaterial amount was recognized in other income or (expense) associated with excluded time value and ineffectiveness. For the three months ended March 31, 2009, no hedges were utilized.

The unrealized currency translation gain for the Jinhui capital stock remains a component of OCI since this investment is designated as an AFS security. For the three months ended March 31, 2008, the hedged portion of the currency translation (loss)/gain has been reclassed to the income statement as a component of other (expense) income. Refer to Note 9 – Accumulated Other Comprehensive Deficit for a breakdown of the components of accumulated OCI.

During the fourth quarter of 2008, the Company reviewed the investment in Jinhui for indicators of other-than-temporary impairment in accordance with FSP 115-1. Based on this review, the Company deemed the investment in Jinhui to be other-than-temporarily impaired as of December 31, 2008 due to the severity of the decline in its market value versus our cost basis. As a result, during the fourth quarter of 2008, the Company recorded a $103,892 impairment charge. As a result of the other-than-temporary impairment, the new cost basis of this investment is 7.14 NOK per share, the value of the investment at December 31, 2008. The Company reviews the investment in Jinhui for impairment on a quarterly basis. There were no other-than-temporary impairments recognized for the quarters ended March 31, 2009 and March 31, 2008.

At March 31, 2009 and December 31, 2008, the Company did not have a short-term forward currency contract to hedge the Company’s exposure to the Norwegian Kroner related to the cost basis of Jinhui stock as described above. The Company has elected to discontinue the forward currency contract and hedge due to the underlying market value of Jinhui in October 2008. As such, there was no short-term asset (liability) associated with the forward currency contract at March 31, 2009 and December 31, 2008. The gain (loss) associated with these short-term forward currency contracts during the three months ended March 31, 2008 is included as a component of other income (expense) and is offset by a reclassification from OCI for the hedged portion of the currency gain (loss) on investment.

The following table sets forth the net loss, realized and unrealized, related to the forward currency contracts and to the hedged translation on the cost basis of the Jinhui stock. These are included as a component of other income (expense).

	Three months ended March 31,
	2009	2008
Net loss, realized and unrealized	$ —	($64)

6 - EARNINGS PER COMMON SHARE

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the year. The computation of diluted earnings per share assumes the vesting of nonvested stock awards (see Note 18 – Nonvested Stock Awards), for which the assumed proceeds upon grant are deemed to be the amount of compensation cost attributable to future services and not yet recognized using the treasury stock method, to the extent dilutive.

The components of the denominator for the calculation of basic earnings per share and diluted earnings per share are as follows:

	Three Months Ended March 31,
	2009		2008

Common shares outstanding, basic:
Weighted average common shares outstanding, basic		31,260,482		28,733,928

Common shares outstanding, diluted:
Weighted average common shares outstanding, basic		31,260,482		28,733,928

Weighted average restricted stock awards		90,908		180,422

Weighted average common shares outstanding, diluted		31,351,390		28,914,350

7 - RELATED PARTY TRANSACTIONS

The following are related party transactions not disclosed elsewhere in these financial statements:

The Company makes an employee performing internal audit services available to General Maritime Corporation (“GMC”), where the Company’s Chairman, Peter C. Georgiopoulos, also serves as Chairman of the Board. For the three months ended March 31, 2009 and 2008, the Company invoiced $35 and $37, respectively, to GMC for the time associated with such internal audit services. Additionally, during the three months ended March 31, 2009 and 2008, the Company incurred travel and other related expenditures totaling $65 and $94, respectively, reimbursable to GMC or its service provider. At March 31, 2009 the amount due to GMC from the Company is $31, and at December 31, 2008, the amount due to the Company from GMC is $62.

During the three months ended March 31, 2009 and 2008, the Company incurred legal services aggregating $5 and $19, respectively, from Constantine Georgiopoulos, father of Peter C. Georgiopoulos, Chairman of the Board. At March 31, 2009 and December 31, 2008, $5 and $1, respectively, was outstanding to Constantine Georgiopoulos.

8 - LONG-TERM DEBT

Long-term debt consists of the following:

	March 31, 2009		December 31, 2008

Outstanding total debt	$	1,173,300	$	1,173,300
Less: Current portion		—		—

Long-term debt	$	1,173,300	$	1,173,300

2007 Credit Facility

On July 20, 2007, the Company entered into a credit facility with DnB Nor Bank ASA (the “2007 Credit Facility”) for the purpose of acquiring the nine new Capesize vessels and refinancing the Company’s existing 2005 Credit Facility and Short-Term Line. DnB Nor Bank ASA is also Mandated Lead Arranger, Bookrunner, and Administrative Agent. The Company has used borrowings under the 2007 Credit Facility to repay amounts outstanding under the Company’s previous credit facilities, which have been terminated. The maximum amount that may be borrowed under the 2007 Credit Facility at March 31, 2009 is $1,364,500. As of March 31, 2009, $191,200 remains available to fund future vessel acquisitions. The Company may borrow up to $50,000 of the $191,200 for working capital purposes.

On January 26, 2009, the Company entered into an amendment to the 2007 Credit Facility (the “2009 Amendment”) which implemented the following modifications to the terms of the 2007 Credit Facility:

Compliance with the existing collateral maintenance financial covenant was waived effective for the year ended December 31, 2008 and until the Company can represent that it is in compliance with all of its financial covenants and is otherwise able to pay a dividend and purchase or redeem shares of common stock under the terms of the Credit Facility in effect before the 2009 Amendment. The Company’s cash dividends and share repurchases were suspended until the Company can represent that it is in a position to again satisfy the collateral maintenance covenant.

·	The total amount of the 2007 Credit Facility is subject to quarterly reductions of $12,500 beginning March 31, 2009 through March 31, 2012 and $48,195 of the total facility amount

thereafter until the maturity date. A final payment of $250,600 will be due on the maturity date.

·	The Applicable Margin to be added to the London Interbank Offered Rate to calculate the rate at which the Company’s borrowings bear interest is 2.00% per annum.

·	The commitment commission payable to each lender is 0.70% per annum of the daily average unutilized commitment of such lender.

The significant covenants in the 2007 Credit Facility have been disclosed in the 2008 10-K. As of March 31, 2009, the Company believes it is in compliance with all of the financial covenants under its 2007 Credit Facility, as amended.

At March 31, 2009, there were no letters of credit issued under the 2007 Credit Facility.

The following table sets forth the repayment of the outstanding debt of $1,173,300 at March 31, 2009 under the 2007 Credit Facility, as amended:


Period Ending December 31,	Total

2009 (April 1, 2009 – December 31, 2009)	$ -
2010	-
2011	-
2012	55,190
2013	192,780
Thereafter	925,330

Total long-term debt	$ 1,173,300

Interest rates

The following tables sets forth the effective interest rate associated with the interest expense for the 2007 Credit Facility, as amended, including the rate differential between the pay fixed receive variable rate on the swaps that were in effect, combined, and the cost associated with unused commitment fees. Additionally, it includes the range of interest rates on the debt, excluding the unused commitment fees:

	Three months ended March 31,
Effective interest rate associated with:	2009	2008
2007 Credit Facility, as amended	5.06%	5.24%
Debt, excluding unused commitment fees (range)	1.23% to 5.56%	3.41% to 6.10%

Interest rate swap agreements

The Company has entered into eleven interest rate swap agreements with DnB NOR Bank to manage interest costs and the risk associated with changing interest rates related to our 2007 Credit Facility. The total notional principal amount of the swaps at March 31, 2009 is $831,233 and the swaps have specified rates and durations.

The following table summarizes the interest rate swaps designated as cash flow hedges that are in place as of March 31, 2009 and December 31, 2008:

Interest Rate Swap Detail				March 31, 2009	December 31, 2008
Trade Date	Fixed Rate	Start Date of Swap	End date of Swap	Notional Amount Outstanding	Notional Amount Outstanding
9/6/05	4.485%	9/14/05	7/29/15	$106,233	$106,233
3/29/06	5.25%	1/2/07	1/1/14	50,000	50,000
3/24/06	5.075%	1/2/08	1/2/13	50,000	50,000
9/7/07	4.56%	10/1/07	12/31/09	75,000	75,000
7/31/07	5.115%	11/30/07	11/30/11	100,000	100,000
8/9/07	5.07%	1/2/08	1/3/12	100,000	100,000
8/16/07	4.985%	3/31/08	3/31/12	50,000	50,000
8/16/07	5.04%	3/31/08	3/31/12	100,000	100,000
1/22/08	2.89%	2/1/08	2/1/11	50,000	50,000
1/9/09	2.05%	1/22/09	1/22/14	100,000	—
2/11/09	2.45%	2/23/09	2/23/14	50,000	—

				$831,233	$681,233

The following table summarizes the derivative asset and liability balances at March 31, 2009:

	Asset Derivatives		Liability Derivatives
As of March 31	2009		2009

	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments under Statement 133
Interest rate contracts	Other Current Assets	$ —	Other Current Liabilities	$ 1,922
Interest rate contracts	Other Non-Current Assets	294	Other Non-Current Liabilities	60,032

Total derivatives designated as hedging instruments under Statement 133		$ 294		$ 61,954

Total Derivatives		$ 294		$ 61,954

The following tables present the impact of derivative instruments and their location within the unaudited Consolidated Statement of Operations:

The Effect of Derivative Instruments on the Consolidated Statement of Operations
For the Period Ended March 31, 2009

Derivatives in Statement 133 Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion)	Location of Gain or (Loss) Reclassified from Accumulated OCI into income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into income (Effective Portion)	Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
	2009		2009		2009

Interest rate contracts	($1,332)	Interest Expense	($5,613)	Other Income (Expense)	($4)

The liability associated with the swaps at December 31, 2008 was $65,937, which was presented as the fair value of derivatives on the balance sheet. Hedge ineffectiveness associated with the interest rate swaps resulted in other income (expense) of $63 for the three months ended March 31, 2008.

At March 31, 2009, ($25,220) of OCI is expected to be reclassified into interest expense over the next 12 months associated with interest rate derivatives.

The Company is required to provide collateral in the form of vessel assets to support the interest rate swap agreements. Each of the Company’s thirty-two vessels serves as collateral in the aggregate amount of $100,000.

9 – ACCUMULATED OTHER COMPREHENSIVE DEFICIT

The components of accumulated other comprehensive deficit included in the accompanying consolidated balance sheets consist of net unrealized gain (loss) on cash flow hedges, net unrealized gain (loss) from investments, and cumulative translation adjustments on the investment in Jinhui stock as of March 31, 2009 and December 31, 2008.

	Accumulated OCI			Unrealized Gain (loss) on Cash Flow Hedges			Unrealized Gain on Investments		Currency Translation Gain on Investments
OCI – January 1, 2009		($ 66,014	)		($ 66,014	)		$ —		$ —
Unrealized gain on investments		5,544						5,544
Translation gain on investments		719								719
Unrealized gain on cash flow hedges		4,281			4,281
OCI – March 31, 2009		($ 55,470	)		($ 61,733	)		$5,544		$719

10 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair values of the Company’s financial instruments are as follows:

	March 31, 2009		December 31, 2008
Cash and cash equivalents		$ 175,785		$ 124,956
Investments		23,035		16,772
Floating rate debt		1,173,300		1,173,300
Derivative instruments – asset position		294		—
Derivative instruments – liability position		61,954		65,937

The fair value of the investments is based on quoted market rates. The fair value of the revolving credit facility is estimated based on current rates offered to the Company for similar debt of the same remaining maturities. Additionally, the Company considers its creditworthiness in determining the fair value of the revolving credit facility. The carrying value approximates the fair market value for the floating rate loans. The fair value of the interest rate swaps is the estimated amount the Company would receive to terminate the swap agreements at the reporting date, taking into account current interest rates and the creditworthiness of both the swap counterparty and the Company.

SFAS No. 157 applies to all assets and liabilities that are being measured and reported on a fair value basis. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following table summarizes the valuation of our investments and financial instruments by the above SFAS No. 157 pricing levels as of the valuation dates listed:

	March 31, 2009
	Total		Quoted market prices in active markets (Level 1)		Significant Other Observable Inputs (Level 2)
Investments	$	23,035	$	23,035
Derivative instruments – asset position		294				294
Derivative instruments – liability position		61,954				61,954

The Company holds an investment in the capital stock of Jinhui, which is classified as a long-term investment. The stock of Jinhui is publicly traded on the Oslo Stock Exchange and is considered a Level 1 item.

The Company’s interest rate derivative instruments are pay-fixed, receive-variable interest rate swaps based on LIBOR. The Company has elected to use the income approach to value the derivatives, using observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount assuming that participants are motivated, but not compelled to transact. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts on LIBOR for the first two years) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient for fair value measurements. Refer to Note 8 – Long-Term Debt for further information regarding the Company’s interest rate swap agreements. SFAS No. 157 states that the fair value measurement of an asset or liability must reflect the nonperformance risk of the entity and the counterparty. Therefore, the impact of the counterparty’s creditworthiness when in an asset position and the Company’s creditworthiness when in a liability position has also been factored into the fair value measurement of the derivative instruments in an asset or liability position and did not have a material impact on the fair value of these derivative instruments. As of March 31, 2009, both the counterparty and the Company are expected to continue to perform under the contractual terms of the instruments.

11 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

	March 31, 2009		December 31, 2008
Lubricant inventory and other stores		$4,084		$3,772
Prepaid items		4,169		2,581
Insurance Receivable		3,249		2,345
Interest receivable on deposits for vessels to be acquired		3,723		3,547
Other		1,682		1,250
Total		$16,907		$13,495

12 – OTHER ASSETS, NET

Other assets consist of deferred financing costs which include fees, commissions and legal expenses associated with securing loan facilities. These costs are amortized over the life of the related debt, which is included in interest expense. The Company has unamortized deferred financing costs of $8,295 and $4,974, respectively, at March 31, 2009 and December 31, 2008 associated with the 2007 Credit Facility. Accumulated amortization of deferred financing costs as of March 31, 2009 and December 31, 2008 was $1,778 and $1,548, respectively. Amortization expense for deferred financing costs for the three months ended March 31, 2009 and 2008 was $230 and $191, respectively.

13 - FIXED ASSETS

Fixed assets consist of the following:

	March 31, 2009		December 31, 2008
Fixed assets:
Vessel equipment		$1,161		$958
Leasehold improvements		1,146		1,146
Furniture and fixtures		347		347
Computer equipment		401		401
Total cost		3,055		2,852
Less: accumulated depreciation and amortization		1,222		1,140
Total		$1,833		$1,712

14 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	March 31, 2009		December 31, 2008
Accounts payable		$2,865		$4,371
Accrued general and administrative expenses		8,211		5,937
Accrued vessel operating expenses		7,246		7,037

Total		$18,322		$17,345

15 - REVENUE FROM TIME CHARTERS

Total revenue earned on time charters, including revenue earned in vessel pools, for the three months ended March 31, 2009 and 2008 was $96,650 and $91,669, respectively. Included in revenues for the three months ended March 31, 2009 and 2008 was $0 and $4,991 of profit sharing revenue, respectively. Future minimum time charter revenue, based on vessels committed to noncancelable time charter contracts as of April 21, 2009 is expected to be $225,746 for the remaining three quarters of 2009, $211,803 during 2010, $92,241 during 2011 and $35,563 during 2012, assuming 20 days of off-hire due to any scheduled drydocking and no additional off-hire time is incurred. Future minimum revenue excludes the future acquisitions of the remaining three Capesize vessels, which are to be delivered to Genco in the future, since estimated delivery dates are not firm. Additionally, future minimum revenue excludes revenue earned for the three vessels in pools, namely the Genco Thunder, Genco Predator and Genco Leader, as pool rates cannot be estimated.

16 - LEASE PAYMENTS

In September 2005, the Company entered into a 15-year lease for office space in New York, New York for which there was a free rental period from September 1, 2005 to July 31, 2006. The monthly straight-line rental expense from September 1, 2005 to August 31, 2020 is $39. As a result of the straight-line rent calculation generated by the free rent period and the tenant work credit, the Company has a deferred rent credit at March 31, 2009 and December 31, 2008 of $701 and $706, respectively. Rent expense for the three months ended March 31, 2009 and 2008, was $117 for each respective period.

Future minimum rental payments on the above lease for the next five years and thereafter are as follows: $364 for the remainder of 2009, $496 for 2010, $518 for 2011 through 2013 and a total of $3,614 for the remaining term of the lease.

17 - SAVINGS PLAN

In August 2005, the Company established a 401(k) plan which is available to full-time employees who meet the plan’s eligibility requirements. This 401(k) plan is a defined contribution plan, which permits employees to make contributions up to maximum percentage and dollar limits allowable by IRS Code Sections 401(k), 402(g), 404 and 415 with the Company matching up to the first six percent of each employee’s salary on a dollar-for-dollar basis. The matching contribution vests immediately. For three months ended March 31, 2009 and 2008, the Company’s matching contribution to the Plan was $53 and $61, respectively.

18 - NONVESTED STOCK AWARDS

On July 12, 2005, the Company’s board of directors approved the Genco Shipping and Trading Limited 2005 Equity Incentive Plan (the “Plan”). Under this plan, the Company’s board of directors, the compensation committee, or another designated committee of the board of directors may grant a variety of stock-based incentive awards to employees, directors and consultants whom the compensation committee (or other committee or the board of directors) believes are key to the Company’s success. Awards may consist of incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, nonvested stock, unrestricted stock

and performance shares. The aggregate number of shares of common stock available for award under the Plan is 2,000,000 shares.

Grants of nonvested common stock to executives and employees vest ratably on each of the four anniversaries of the determined vesting date, which are typically held during May. Grants of nonvested common stock to directors vest the earlier of the first anniversary of the grant date or the date of the next annual shareholders’ meeting.

The following table presents a summary of the Company’s nonvested stock awards for the three months ending March 31, 2009:

	Number of Shares		Weighted Average Grant Date Price
Outstanding at January 1, 2009		449,066		$ 27.96
Granted		—		—
Vested		—		—
Forfeited		—		—

Outstanding at March 31, 2009		449,066		$ 27.96

For the three months ended March 31, 2009 and March 31, 2008, the Company recognized nonvested stock amortization expense, which is included in general and administrative expenses, as follows:

	Three months ended March 31,
	2009		2008
General and administrative expenses		$ 1,232		$ 1,588

The fair value of nonvested stock at the grant date is equal to the closing stock price on that date. The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of March 31, 2009, unrecognized compensation cost related to nonvested stock will be recognized over a weighted average period of 4.90 years.

19 – STOCK REPURCHASE PROGRAM

On February 13, 2008, our board of directors approved a share repurchase program for up to a total of $50,000 of the Company's common stock. Share repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company's discretion and without notice. Repurchases will be subject to restrictions under the 2007 Credit Facility. The 2007 Credit Facility was amended as of February 13, 2008 to permit the share repurchase program and provide that the dollar amount of shares repurchased is counted toward the maximum dollar amount of dividends that may be paid in any fiscal quarter. Subsequently, on January 26, 2009, the Company entered into the 2009 Amendment which amended the 2007 Credit Facility to require the Company to suspend all share repurchases until the Company can represent that it is in a position to again satisfy the collateral maintenance covenant. Refer to Note 8 – Long-Term Debt.

Through March 31, 2009, the Company repurchased and retired 278,300 shares of its common stock for $11,500. An additional 3,130 shares of common stock were repurchased from employees for $41 during 2008 pursuant to the Company’s Equity Incentive Plan rather than the share repurchase program.

20 - LEGAL PROCEEDINGS

From time to time the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. During January 2009, the Genco Cavalier, a 2007-built Supramax vessel, was on charter to Samsun Logix Corporation, which has filed for the equivalent of bankruptcy protection in South Korea, otherwise referred to as a rehabilitation application. Charter hire for the Genco Cavalier has been received up until January 30, 2009. The Third Bankruptcy Division of the Seoul Central District Court (the “Bankruptcy Court”) accepted the rehabilitation application on March 6, 2009. The contract with Samsun was repudiated as a result of the non-payment of hire and the Genco Cavalier is currently on hire with a new charterer. We will continue to pursue all legal options available to the Company under the Bankruptcy Court.

With the exception of the legal proceeding related to the Genco Cavalier as noted above, the Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the Company, its financial condition, results of operations or cash flows.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (ix) the amount of offhire time needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) our acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company’s agreements to acquire a total of three drybulk vessels; (xii) the results of the investigation into the incident involving the collision of the Genco Hunter , the possible cause of and liability for such incident, and the scope of insurance coverage available to Genco for such incident; (xiii) the Company’s ability to collect amounts due from and the outcome of its pending arbitration against Samsun Logix Corporation with respect to the terminated charter for the Genco Cavalier; (xiv) the Company’s ability to collect on any damage claim for the recent collision involving the Genco Cavalier and other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent reports on Form 8-K and Form 10-Q. Our ability to pay dividends in any period will depend upon factors including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

The following management’s discussion and analysis should be read in conjunction with our historical consolidated financial statements and the related notes included in this Form 10-Q.

General

We are a Marshall Islands company incorporated in September 2004 to transport iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels. As of March 31, 2009, our fleet consisted of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize drybulk carriers, with an aggregate carrying capacity of approximately 2,396,500 dwt, and the average age of our fleet was approximately 6.7 years, as compared to the average age for the world fleet of approximately 15.0 years for the drybulk shipping segments in which we compete. The Company seeks to time charter vessels in our fleet to reputable charterers, including Lauritzen Bulkers A/S, Cargill International S.A., NYK Bulkship Europe, Pacific Basin Chartering Ltd., STX Panocean (UK) Co. Ltd., COSCO Bulk Carriers Co., Ltd., and Hyundai Merchant Marine Co. Ltd. Twenty-nine of the 32 vessels in our fleet are presently engaged under time charter contracts that expire (assuming the option periods in the time charters are not exercised) between May 2009 and October 2012.

See pages 8-9 for a table of all vessels currently in our fleet or expected to be delivered to us.

We intend to continue to grow our fleet through timely and selective acquisitions of vessels in a manner that is accretive to our cash flow. In connection with the acquisitions made in 2007 and 2008 and our growth strategy, we negotiated the 2007 Credit Facility that we have used to acquire vessels.

Our management team and our other employees are responsible for the commercial and strategic management of our fleet. Commercial management includes the negotiation of charters for vessels, managing the mix of various types of charters, such as time charters and voyage charters, and monitoring the performance of our vessels under their charters. Strategic management includes locating, purchasing, financing and selling vessels. We currently contract with two independent technical managers, to provide technical management of our fleet at a lower cost than we believe would be possible in-house. Technical management involves the day-to-day management of vessels, including performing routine maintenance, attending to vessel operations and arranging for crews and supplies. Members of our New York City-based management team oversee the activities of our independent technical managers.

During January 2009, the Genco Cavalier, a 2007-built Supramax vessel, was on charter to Samsun Logix Corporation, which has filed for the equivalent of bankruptcy protection in South Korea, otherwise referred to as a rehabilitation application. Charter hire for the Genco Cavalier has been received up until January 30, 2009. The Third Bankruptcy Division of the Seoul Central District Court (the “Bankruptcy Court”) accepted the rehabilitation application on March 6, 2009. The contract with Samsun was repudiated as a result of the non-payment of hire and the Genco Cavalier is currently on hire with a new charterer. We will continue to pursue all legal options available to the Company under the Bankruptcy Court.

Factors Affecting Our Results of Operations

We believe that the following table reflects important measures for analyzing trends in our results of operations. The table reflects our ownership days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the three months ended March 31, 2009.

	For the three months ended March 31,				Increase
	2009		2008		(Decrease)			% Change
Fleet Data:
Ownership days (1)
Capesize		540.0		404.0		136.0			33.7	%
Panamax		720.0		602.6		117.4			19.5	%
Supramax		360.0		273.0		87.0			31.9	%
Handymax		540.0		546.0		(6.0	)		(1.1	%)
Handysize		720.0		726.4		(6.4	)		(0.9	%)

Total		2,880.0		2,552.0		328.0			12.9	%

Available days (2)
Capesize		540.0		403.9		136.1			33.7	%
Panamax		720.0		599.4		120.6			20.1	%
Supramax		360.0		273.0		87.0			31.9	%
Handymax		523.4		546.0		(22.6	)		(4.1	%)
Handysize		720.0		711.1		8.9			1.3	%
Total		2,863.4		2,533.4		330.0			13.0	%

Operating days (3)
Capesize		540.0		403.9		136.1			33.7	%
Panamax		695.5		595.5		100.0			16.8	%
Supramax		344.2		272.9		71.3			26.1	%
Handymax		518.4		546.0		(27.6	)		(5.1	%)
Handysize		718.2		709.4		8.8			1.2	%


Total	2,816.3		2,527.7		288.6		11.4	%

Fleet utilization (4)
Capesize	100.0	%	100.0	%	0.0	%	0.0	%
Panamax	96.6	%	99.3	%	(2.7	%)	(2.7	%)
Supramax	95.6	%	99.9	%	(4.3	%)	(4.3	%)
Handymax	99.0	%	100.0	%	(1.0	%)	(1.0	%)
Handysize	99.8	%	99.8	%	0.0	%	0.0	%
Fleet average	98.4	%	99.8	%	(1.4	%)	(1.4	%)

	For the three months ended March 31,				Increase
	2009		2008		(Decrease)			% Change
	(U.S. dollars)
Average Daily Results:
Time Charter Equivalent (5)
Capesize		$58,238		$69,806		($11,568	)		(16.6	%)
Panamax		29,784		30,921		(1,137	)		(3.7	%)
Supramax		30,654		51,863		(21,209	)		(40.9	%)
Handymax		31,968		29,027		2,941			10.1	%
Handysize		20,016		19,956		60			0.3	%

Fleet average		33,203		35,891		(2,688	)		(7.5	%)

Daily vessel operating expenses (6)
Capesize		$5,179		$4,914		265			5.4	%
Panamax		5,531		4,562		969			21.2	%
Supramax		4,908		4,176		732			17.5	%
Handymax		4,720		4,147		573			13.8	%
Handysize		4,316		3,827		489			12.8	%

Fleet average		4,931		4,278		653			15.3	%

Definitions

In order to understand our discussion of our results of operations, it is important to understand the meaning of the following terms used in our analysis and the factors that influence our results of operations.

(1) Ownership days. We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

(2) Available days. We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues.

(3) Operating days. We define operating days as the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

(4) Fleet utilization. We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the number of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning.

(5) TCE rates. We define TCE rates as net voyage revenue (voyage revenues less voyage expenses) divided by the number of our available days during the period, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts.

	For the three months ended March 31,
	2009		2008

Voyage revenues		$ 96,650		$ 91,669
Voyage expenses		1,579		744
Net voyage revenue		$ 95,071		$ 90,925

(6) Daily vessel operating expenses. We define daily vessel operating expenses as vessel operating expense divided by ownership days for the period. Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses.

Operating Data


	For the three months ended March 31,
			Increase
	2009	2008	(Decrease)	% Change
	(U.S. dollars in thousands, except for per share amounts)

Revenues	$96,650	$91,669	$4,981	5.4%
Operating Expenses:
Voyage expenses	1,579	744	835	112.2%
Vessel operating expenses	14,202	10,919	3,283	30.1%
General and administrative expenses	3,893	4,411	(518)	(11.7%)
Management fees	879	672	207	30.8%
Depreciation and amortization	20,949	15,864	5,085	32.1%
Gain on sale of vessel	-	(26,227)	26,227	(100.0%)
Total operating expenses	41,502	6,383	35,119	550.2%

Operating income	55,148	85,286	(30,138)	(35.3%)
Other (expense) income	(13,907)	(11,299)	(2,608)	23.1%
Net income	$41,241	$73,987	($32,746)	(44.3%)

Earnings per share - Basic	$1.32