They didn't miss the the first quarter's number, they took a 9 cent impairment. Their Q1 number was $.43/share. And as long as the oil producing nation want to pump out more and more oil, the rates are not coming down any time soon. It was implied on the call that the Q 2 spot rates would remain close to $60K/day.
Following a great first quarter, we had to-date looked 71% of our stock base for the second quarter at $59,000 per day. As such about 43% of our spot calendar year is open for at $60,000 a day. And these we think are handsome numbers.
We will now go through the income statements. With TC revenues at 90 million, normalized EBITDA at some 70 million and net income excluding impairment of 40 million, it was a solid quarter. EPS was $0.34. This however, includes the impairment of the assets held for sale equaling $0.09 per share. As such the normalized EPS was $0.43.
Part of the business with some of their customers is on consignment, so they don't get the numbers from the partners until the partners do an inventory to see what they pulled. The partners will get them an estimate on what they think they are going to use sometime in Q4 and the actual numbers in early January. Consignment is great for suppliers as the OEM is committed to you, but you are not getting the PO until after the product has been consumed. It's the same issue every quarter.