LIMASSOL,
Highlights of the First Quarter Ended
- Revenues, net:
$54.6 million for the three months endedMarch 31, 2022 , as compared to$7.0 million for the three months endedMarch 31, 2021 ; - Net income:
$20.0 million for the three months endedMarch 31, 2022 , as compared to$1.1 million for the three months endedMarch 31, 2021 ; - Earnings per common share(1):
$0.21 earnings per share for the three months endedMarch 31, 2022 , as compared to earnings per share of$0.02 for the three months endedMarch 31, 2021 ; - EBITDA(2):
$27.9 million for the three months endedMarch 31, 2022 , as compared to$2.6 million for the three months endedMarch 31, 2021 ; and - Cash and restricted cash of
$84.0 million as ofMarch 31, 2022 , as compared to$43.4 million as ofDecember 31, 2021 .
(1) All comparative share and per share amounts disclosed throughout this press release and in the financial information presented in Appendix B have been retroactively updated to reflect the one-for-ten (1-for-10) reverse stock split effected on
(2) EBITDA is not a recognized measure under
Management Commentary:
Mr.
“In the first quarter of 2022 we enjoyed for the first time the full contribution to quarterly earnings of all the vessels acquired during 2021. In addition, we benefited from a robust dry bulk market as well as from the recovery in the charter rates of our Aframax/LR2 vessels, resulting in our best quarter to date, with Net income of
We did not sell any common shares under the ATM Program during the first quarter and up to the date of this release, at the same time, we resized our ATM Program from
Earnings Commentary:
First Quarter ended
Vessel revenues, net of charterers’ commissions, for the three months ended
The increase in voyage expenses, from a net gain of
The increase in vessel operating expenses by
General and administrative expenses in the three months ended
Management fees in the three months ended
During the three months ended
Recent Financial and Business Developments Commentary:
Equity update
In connection with our ongoing at-the-market common stock offering program (“ATM Program”), on
From
Cash Flow update
Our consolidated cash position as of
As of
Sale of the M/T Wonder Arcturus
On
New employment agreements
On
On
On
(1) The benchmark vessel used in the calculation of the average of the Baltic Panamax Index (“BPI”) 5TC routes is a non-scrubber fitted 82,500mt dwt vessel (Kamsarmax) with specific age, speed - consumption, and design characteristics.
Fleet Employment Status (as of
During the three months ended
Dry Bulk Carriers | |||||||||
Type | DWT | Year Built | Country of Construction | Type of Employment | Daily Gross | Estimated Redelivery Date | |||
Earliest | Latest | ||||||||
Capesize | 180,200 | 2006 | TC (1) period | 101% of BCI5TC (2) | Oct-22 | Jan-23 | |||
Kamsarmax | 83,416 | 2010 | TC period | 100% of BPI5TC | Apr-23 | Jul-23 | |||
Kamsarmax | 83,375 | 2011 | TC period | 100% of BPI5TC | Oct-22 | Jan-23 | |||
Kamsarmax | 82,338 | 2009 | TC period | 103% of BPI5TC | Apr-23 | Jul-23 | |||
Magic Perseus | Kamsarmax | 82,158 | 2013 | TC period | 100% of BPI5TC | Oct-22 | Jan-23 | ||
Magic Starlight | Kamsarmax | 81,048 | 2015 | TC period | Sep-22 | Mar-23 | |||
Magic Twilight | Kamsarmax | 80,283 | 2010 | TC period | Jan-23 | Apr-23 | |||
Magic Nebula | Kamsarmax | 80,281 | 2010 | TC period | Sep-22 | Nov -22 | |||
Panamax | 78,833 | 2010 | TC period | Oct-22 | Feb-23 | ||||
Panamax | 76,822 | 2014 | TC period | Νοv-22 | Feb-23 | ||||
Panamax | 76,636 | 2008 | TC period | Sep-22 | Dec-22 | ||||
Magic Horizon | Panamax | 76,619 | 2010 | TC trip | Jun-22 | Jun-22 | |||
Panamax | 76,602 | 2005 | TC trip | May-22 | May-22 | ||||
Magic P | Panamax | 76,453 | 2004 | TC period | Sep-22 | Oct-22 | |||
Panamax | 75,311 | 2001 | Unfixed | N/A | N/A | N/A | |||
Panamax | 75,003 | 2011 | TC period | 87.5% of BPI5TC | Apr-23 | Jul-23 | |||
Panamax | 74,940 | 2011 | TC period | Αpr-22 | Jul-22 | ||||
Magic Pluto | Panamax | 74,940 | 2013 | TC period | Nov-22 | Feb-23 | |||
Magic Callisto | Panamax | 74,930 | 2012 | TC period | Oct-22 | Jan-23 | |||
Panamax | 73,593 | 2007 | TC trip | Jun-22 | Jun-22 | ||||
Aframax / LR2 Tankers | |||||||||
Type | DWT | Year Built | Country of Construction | Type of Employment | Daily Gross | Estimated Redelivery Date | |||
Earliest | Latest | ||||||||
Wonder Polaris | Aframax / LR2 | 115,351 | 2005 | Voyage | N/A | ||||
Wonder Sirius | Aframax / LR2 | 115,341 | 2005 | Voyage | N/A | ||||
Wonder | Aframax / LR2 | 115,341 | 2006 | Unfixed | N/A | N/A | N/A | ||
Wonder Musica | Aframax / LR2 | 106,290 | 2004 | Voyage | N/A | ||||
Wonder Avior | Aframax / LR2 | 106,162 | 2004 | Voyage | N/A | ||||
Wonder Arcturus | Aframax / LR2 | 106,149 | 2002 | Voyage | N/A | ||||
Wonder Vega | Aframax | 106,062 | 2005 | N/A | N/A | N/A | |||
Handysize Tankers | |||||||||
Type | DWT | Year Built | Country of Construction | Type of Employment | Daily Gross | Estimated Redelivery Date | |||
Earliest | Latest | ||||||||
Wonder Mimosa | Handysize | 36,718 | 2006 | N/A | N/A | N/A | |||
Wonder Formosa | Handysize | 36,660 | 2006 | N/A | N/A | N/A |
(1) | TC stands for time charter. |
(2) | The benchmark vessel used in the calculation of the average of the Baltic Capesize Index (“BCI”) 5TC routes (“BCI5TC”) is a non-scrubber fitted 180,000mt dwt vessel (Capesize) with specific age, speed - consumption, and design characteristics. |
(3) | The vessels’ daily gross charter rate is equal to 114% of the Baltic Panamax Index 4TC routes (“BPI4TC”). In accordance with the prevailing charter party, on |
(4) | The vessels’ daily gross charter rate is equal to 92% of BPI5TC. In accordance with the prevailing charter party, on |
(5) | The vessels’ daily gross charter rate is equal to 91% of BPI5TC. In accordance with the prevailing charter party, on |
(6) | The vessels’ daily gross charter rate is equal to 102% of BPI4TC. In accordance with the prevailing charter party, on |
(7) | Upon completion of current fixture, the vessel is fixed in direct continuation for a time charter period of minimum 12 months up to maximum 15 months, at a gross charter rate equal to 103% of BPI4TC. |
(8) | The vessels’ daily gross charter rate is equal to 91% of BPI5TC. In accordance with the prevailing charter party, on |
(9) | The vessels’ daily gross charter rate is equal to 101% of BPI4TC. In accordance with the prevailing charter party, on |
(10) | For vessels that are employed on the voyage/spot market, the gross daily charter rate is considered as the Daily TCE Rate on the basis of the expected completion date. |
(11) | Estimated completion date of the voyage. |
(12) | The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Aframax tanker vessels. |
(13) | The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels. |
Financial Results Overview (consolidated):
Set forth below are selected financial data for each of the three months ended
Three Months Ended | |||||
(Expressed in | 2022 (unaudited) | 2021 (unaudited) | |||
Vessel revenues, net | $ | 54,641,313 | $ | 6,972,853 | |
Operating income | $ | 21,824,411 | $ | 1,491,439 | |
Net income | $ | 19,976,288 | $ | 1,127,060 | |
EBITDA (1) | $ | 27,904,951 | $ | 2,570,724 | |
Earnings per common share | $ | 0.21 | $ | 0.02 |
(1) EBITDA is not a recognized measure under
Consolidated fleet selected financial and operational data:
Set forth below are selected financial and operational data of our fleet for each of the three months ended
Three Months Ended | |||||||
(Expressed in | 2022 | 2021 | |||||
Ownership Days (1) (7) | 2,606 | 628 | |||||
Available Days (2)(7) | 2,606 | 615 | |||||
Operating Days (3) (7) | 2,584 | 603 | |||||
Daily TCE rate(4) | $ | 17,809 | $ | 12,032 | |||
Fleet Utilization (5) | 99% | 98% | |||||
Daily vessel operating expenses (6) | $ | 5,896 | $ | 5,265 |
(1) | Ownership Days are the total number of calendar days in a period during which we owned a vessel. |
(2) | Available Days are the Ownership Days in a period less the aggregate number of days our vessels are off-hire due to scheduled repairs, dry-dockings or special or intermediate surveys. |
(3) | Operating Days are the Available Days in a period after subtracting off-hire and idle days. |
(4) | Daily TCE rate is not a recognized measure under |
(5) | Fleet Utilization is calculated by dividing the Operating Days during a period by the number of Available Days during that period. |
(6) | Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the Ownership Days for such period. |
(7) | Our definitions of days (i.e., Ownership Days, Available Days, Operating Days) may not be comparable to those reported by other companies. |
APPENDIX A
Unaudited Condensed Consolidated Statements of Comprehensive Income
(In | Three Months Ended | ||||||
2022 | 2021 | ||||||
REVENUES | |||||||
Vessel revenues, net | $ | 54,641,313 | $ | 6,972,853 | |||
EXPENSES | |||||||
Voyage expenses -including commissions to related party | (8,230,771 | ) | 426,972 | ||||
Vessel operating expenses | (15,364,118 | ) | (3,306,257 | ) | |||
General and administrative expenses (including related party fees) | (921,707 | ) | (739,231 | ) | |||
Management fees -related parties | (2,218,500 | ) | (774,350 | ) | |||
Depreciation and amortization | (6,081,806 | ) | (1,088,548 | ) | |||
Operating income | $ | 21,824,411 | $ | 1,491,439 | |||
Interest and finance costs, net (including related party interest costs) (1) | (1,608,015 | ) | (355,116 | ) | |||
Other expenses, net | (1,266 | ) | (9,263 | ) | |||
US source income taxes | (238,842 | ) | — | ||||
Net income | $ | 19,976,288 | $ | 1,127,060 | |||
Earnings per common share (basic and diluted) (2) | $ | 0.21 | $ | 0.02 | |||
Weighted average number of common shares outstanding, basic (2): | 94,610,088 | 57,662,495 | |||||
Weighted average number of common shares outstanding, diluted (2): | 94,610,088 | 63,281,613 |
Unaudited Condensed Consolidated Balance Sheets
(Expressed in
2022 | 2021 | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ | 73,347,813 | $ | 37,173,736 | |
Restricted cash | 2,903,805 | 2,382,732 | |||
Due from related party | 850,958 | — | |||
Other current assets | 26,359,849 | 15,443,620 | |||
Total current assets | 103,462,425 | 55,000,088 | |||
NON-CURRENT ASSETS: | |||||
Vessels, net | 411,961,978 | 393,965,929 | |||
Advances for vessel acquisition | — | 2,368,165 | |||
Restricted cash | 7,710,000 | 3,830,000 | |||
Due from related party | — | 810,437 | |||
Other non-currents assets | 5,764,220 | 6,938,823 | |||
Total non-current assets, net | 425,436,198 | 407,913,354 | |||
Total assets | 528,898,623 | 462,913,442 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
CURRENT LIABILITIES: | |||||
Current portion of long-term debt, net | 29,853,634 | 16,091,723 | |||
Due to related parties | 426,941 | 4,507,569 | |||
Other current liabilities | 13,261,426 | 13,430,104 | |||
Total current liabilities | 43,542,001 | 34,029,396 | |||
NON-CURRENT LIABILITIES: | |||||
Long-term debt, net | 122,445,964 | 85,949,676 | |||
Total non-current liabilities | 122,445,964 | 85,949,676 | |||
Total liabilities | 165,987,965 | 119,979,072 | |||
SHAREHOLDERS’ EQUITY | |||||
Common shares, | 94,610 | 94,610 | |||
Series B Preferred Shares- 12,000 shares issued and outstanding as at | 12 | 12 | |||
Additional paid-in capital | 303,658,153 | 303,658,153 | |||
Retained Earnings | 59,157,883 | 39,181,595 | |||
Total shareholders’ equity | 362,910,658 | 342,934,370 | |||
Total liabilities and shareholders’ equity | $ | 528,898,623 | $ | 462,913,442 |
Unaudited Consolidated Statements of Cash Flows
(Expressed in | Three Months Ended | ||||||
2022 | 2021 | ||||||
Cash flows provided by Operating Activities: | |||||||
Net income | $ | 19,976,288 | $ | 1,127,060 | |||
Adjustments to reconcile net income to net cash provided by Operating activities: | |||||||
Depreciation and amortization | 6,081,806 | 1,088,548 | |||||
Amortization of deferred finance charges | 218,277 | 47,603 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable trade, net | (4,567,826 | ) | (264,402 | ) | |||
Inventories | (4,183,723 | ) | (62,006 | ) | |||
Due from/to related parties | (4,121,149 | ) | (1,589,006 | ) | |||
Prepaid expenses and other assets | (1,230,788 | ) | (718,165 | ) | |||
Dry-dock costs paid | (537,430 | ) | (1,045,204 | ) | |||
Other deferred charges | (183,893 | ) | — | ||||
Accounts payable | 2,364,526 | 1,156,948 | |||||
Accrued liabilities | 744,984 | 163,609 | |||||
Deferred revenue | (1,497,300 | ) | 533,572 | ||||
Net cash provided by Operating Activities | 13,063,772 | 438,557 | |||||
Cash flows used in Investing Activities: | |||||||
Vessel acquisitions and other vessel improvements | (22,462,747 | ) | (75,598,034 | ) | |||
Advances for vessel acquisition | — | (8,600,659 | ) | ||||
Net cash used in Investing Activities | (22,462,747 | ) | (84,198,693 | ) | |||
Cash flows provided by Financing Activities: | |||||||
Gross proceeds from issuance of common stock and warrants | — | 127,453,446 | |||||
Common stock issuance expenses | (65,797 | ) | (3,313,039 | ) | |||
Proceeds from long-term debt | 55,000,000 | 15,290,000 | |||||
Repayment of long-term debt | (4,259,500 | ) | (550,000 | ) | |||
Payment of deferred financing costs | (700,578 | ) | (307,800 | ) | |||
Net cash provided by Financing Activities | 49,974,125 | 138,572,607 | |||||
Net increase in cash, cash equivalents, and restricted cash | 40,575,150 | 54,812,471 | |||||
Cash, cash equivalents and restricted cash at the beginning of the period | 43,386,468 | 9,426,903 | |||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 83,961,618 | $ | 64,239,374 |
(1) | Includes interest and finance costs and interest income, if any. |
(2) | All numbers of share and earnings per share amounts in these unaudited condensed financial statements have been retroactively adjusted to reflect the reverse stock split effected on |
APPENDIX B
Non-GAAP Financial Information
Daily TCE Rate. The Daily Time Charter Equivalent Rate (“Daily TCE Rate”), is a measure of the average daily revenue performance of a vessel. The Daily TCE Rate is calculated by dividing total revenues (time charter and/or voyage charter revenues, and/or pool revenues, net of charterers’ commissions), less voyage expenses, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry docking or due to other unforeseen circumstances. We may also incur voyage related expenses when our vessels are engaged in voyage charters, in which case the majority of voyage expenses are borne by us. The Daily TCE Rate is not a measure of financial performance under
Three Months Ended | |||||||
(In | 2022 | 2021 | |||||
Vessel revenues, net | $ | 54,641,313 | $ | 6,972,853 | |||
Voyage expenses -including commissions from related party | (8,230,771 | ) | 426,972 | ||||
TCE revenues | $ | 46,410,542 | $ | 7,399,825 | |||
Available Days | 2,606 | 615 | |||||
Daily TCE Rate | $ | 17,809 | $ | 12,032 |
EBITDA. We define EBITDA as earnings before interest and finance costs (if any), net of interest income, taxes (when incurred), depreciation and amortization of deferred dry-docking costs. EBITDA is used as a supplemental financial measure by management and external users of financial statements to assess our operating performance. We believe that EBITDA assists our management by providing useful information that increases the comparability of our performance operating from period to period and against the operating performance of other companies in our industry that provide EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength. EBITDA is not a measure of financial performance under
Reconciliation of EBITDA to Net Income
Three Months Ended | |||||
(In | 2022 | 2021 | |||
Net Income | $ | 19,976,288 | $ | 1,127,060 | |
Depreciation and amortization | 6,081,806 | 1,088,548 | |||
Interest and finance costs, net (including related party interest costs) (1) | 1,608,015 | 355,116 | |||
US source income taxes | 238,842 | — | |||
EBITDA | $ | 27,904,951 | $ | 2,570,724 |
(1) Includes interest and finance costs and interest income, if any.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. We are including this cautionary statement in connection with this safe harbor legislation. The words “believe”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these forward-looking statements, including these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward‐looking statements include our business strategy, dry bulk and tanker market conditions and trends, the rapid growth of our fleet, our relationships with our current and future service providers and customers, our ability to borrow under existing or future debt agreements or to refinance our debt on favorable terms and our ability to comply with the covenants contained therein, our continued ability to enter into time or voyage charters with existing and new customers and to re-charter our vessels upon the expiry of the existing charters, changes in our operating and capitalized expenses, our ability to fund future capital expenditures and investments in the acquisition and refurbishment of our vessels, instances of off-hire (including limitations improved by COVID-19 and/or due to vessel upgrades and repairs), future sales of our securities in the public market and our ability to maintain compliance with applicable listing standards, volatility in our share price, potential conflicts of interest involving members of our Board of Directors, senior management and certain of our service providers that are related parties, general domestic and international political conditions or events (including “trade wars”, global public health threats and major outbreaks of disease), changes in seaborne and other transportation, changes in governmental rules and regulations or actions taken by regulatory authorities, and the impact of adverse weather and natural disasters. Please see our filings with the
CONTACT DETAILS
For further information please contact:
Chief Executive Officer & Chief Financial Officer
Email: ir@castormaritime.com
Media Contact:
Capital Link
Email: castormaritime@capitallink.com
Source:
2022 GlobeNewswire, Inc., source