Highlights of the Third Quarter of 2022:
- Net revenues:
$34.0 million in Q3 2022, as compared to$48.2 million in Q3 2021 - Net Income:
$7.1 million in Q3 2022, as compared to$20.1 million in Q3 2021 - Adjusted Net Income1:
$7.6 million in Q3 2022, as compared to$22.8 million in Q3 2021 - EBITDA1:
$18.6 million in Q3 2022, as compared to$30.1 million in Q3 2021 - Adjusted EBITDA1:
$19.0 million in Q3 2022, as compared to$32.2 million in Q3 2021 - Earnings per share (“EPS”) (basic & diluted):
$0.04 - Adjusted EPS1 (basic & diluted):
$0.04
Highlights of the Nine Months ended
- Net revenues:
$96.5 million in 9M 2022, as compared to$96.4 million in 9M 2021 - Net Income:
$16.7 million in 9M 2022, as compared to$20.7 million in 9M 2021 - Adjusted Net Income1:
$22.4 million in 9M 2022, as compared to$25.4 million in 9M 2021 - EBITDA1:
$47.5 million in 9M 2022, as compared to$47.4 million in 9M 2021 - Adjusted EBITDA1:
$53.1 million in 9M 2022, as compared to$51.4 million in 9M 2021 - Earnings per share (“EPS”) (basic & diluted):
$0.10 and$0.09 respectively - Adjusted EPS1 (basic & diluted):
$0.13
Other Developments:
- Quarterly dividend of
$0.025 per share for Q3 2022 - total cash dividends of$0.125 per share in 2022 to date - Dividends represent 25% yield based on our closing price on
November 29, 2022 - Total buybacks of convertible notes, warrants and shares of
$26.7 million completed since Q4 2021 - New financing and refinancing transactions totaling
$108.3 million within 2022 with improved pricing and overall loan terms - no remaining loan maturities until Q4 2023
For the quarter ended
For the nine-month period ended
Cash, cash-equivalents and restricted cash, as of
________________________
1 Adjusted EPS, Adjusted Net Income, EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted EPS, Adjusted Net Income, EBITDA and Adjusted EBITDA to net income, the most directly comparable
2 TCE rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable
“We are pleased to report another profitable quarter for Seanergy, despite the challenging macroeconomic and market conditions. Our Board of Directors has approved a cash dividend of
“Regarding our financial performance in the third quarter, we have achieved TCE Revenues of
“Concerning our commercial developments, four of our vessels secured new time charter (“T/C”) employment or extended their existing agreements since our last update. The time charters are index-linked and all of them were concluded at premiums over the BCI. In addition, we managed to improve the scrubber profit sharing scheme for the scrubber-fitted vessels that were due for renewal. Within the next two quarters several of our scrubber-fitted vessels will start earning a considerably higher share of the scrubber premium, further strengthening our operational revenues.
“On the ESG and energy efficiency front, during the quarter we continued the installation of energy saving devices on an additional vessel. Similar to the rest of our fleet, these improvements will ensure the marketability of this vessel well into the future by keeping pace with the high environmental demands of first-class charterers. We have also continued the biofuel trials with two major clients and are in process of evaluating similar prospects with more of our close charterers.
“On the financing front, we continue our balance sheet optimization initiatives, having concluded
“With dry bulk fleet growth at the lowest levels on record, we remain confident in the long-term prospects of the market and are constantly evaluating our options with respect to returning capital to shareholders and accretive vessel acquisitions.”
Company Fleet:
Capacity (DWT) | Year Built | Yard | Scrubber Fitted | Employment Type | FFA conversion option(1) | Minimum expiration | Maximum expiration(2) | Charterer | |
Fellowship | 179,701 | 2010 | Daewoo | - | T/C Index Linked | Yes | 06/2024 | 10/2024 | Anglo American |
Worldship | 181,415 | 2012 | Koyo – Imabari | Yes | T/C Index Linked | Yes | 10/2023 | 01/2024 | |
Championship | 179,238 | 2011 | Sungdong SB | Yes | T/C Index Linked | Yes | 11/2023 | 11/2023 | |
Flagship | 176,387 | 2013 | Mitsui | - | T/C Index Linked | Yes | 05/2026 | 05/2026 | |
Patriotship | 181,709 | 2010 | Imabari | Yes | T/C Index Linked | Yes | 11/2023 | 05/2024 | Glencore |
Knightship | 178,978 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 05/2023 | 11/2023 | Glencore |
Premiership | 170,024 | 2010 | Sungdong SB | Yes | T/C Index Linked | Yes | 11/2022 | 05/2023 | Glencore |
Squireship | 170,018 | 2010 | Sungdong SB | Yes | T/C Index Linked | - | 12/2022 | 06/2023 | Glencore |
Dukeship | 181,453 | 2010 | Sasebo | - | T/C Index Linked | Yes | 01/2023 | 06/2023 | NYK |
Hellasship | 181,325 | 2012 | Imabari | - | T/C Index Linked | Yes | 12/2023 | 04/2024 | NYK |
Honorship | 180,242 | 2010 | Imabari | - | T/C Index Linked | Yes | 02/2024 | 06/2024 | NYK |
Geniuship | 170,057 | 2010 | Sungdong SB | - | T/C Index Linked | Yes | 01/2023 | 05/2023 | NYK |
Friendship | 176,952 | 2009 | Namura | - | T/C Index Linked | Yes | 12/2023 | 03/2024 | NYK |
Goodship | 177,536 | 2005 | Mitsui | - | T/C Index Linked | Yes | 06/2023 | 12/2023 | Olam |
Tradership | 176,925 | 2006 | Namura | - | T/C Index Linked | Yes | 06/2023 | 10/2023 | Oldendorff |
Partnership | 179,213 | 2012 | Hyundai | Yes | T/C Index Linked | Yes | 10/2022 | 11/2023 | Uniper |
Lordship | 178,838 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 08/2023 | 10/2023 | Uniper |
Total / Average age | 3,020,012 | 12.5 | - | - | - | - | - | - | - |
(1) The Company has the option to convert the index-linked rate to a fixed one for a period ranging between 1 and 12 months, based on the prevailing Capesize FFA Rate for the selected period.
(2) The latest redelivery date does not include any additional optional period.
Fleet Data:
(
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | |||||
Ownership days (1) | 1,569 | 1,477 | 4,650 | 3,632 | ||||
Operating days (2) | 1,557 | 1,439 | 4,380 | 3,494 | ||||
Fleet utilization (3) | 99.2% | 97.4% | 94.2% | 96.2% | ||||
TCE rate (4) | 20,614 | 20,996 | ||||||
Daily Vessel Operating Expenses (5) | 7,593 | 6,875 |
(1) Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.
(2) Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without having finalized agreements for their next employment.
(3) Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.
(4) TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable
(In thousands of
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | ||
Vessel revenue, net | 32,963 | 48,179 | 95,476 | 96,409 | |
Less: Voyage expenses | 867 | 3,910 | 3,513 | 14,477 | |
Time charter equivalent revenues | 32,096 | 44,269 | 91,963 | 81,932 | |
Operating days | 1,557 | 1,439 | 4,380 | 3,494 | |
TCE rate | 20,996 |
(5) Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses, excluding pre delivery costs, by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.
(In thousands of
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | ||
Vessel operating expenses | 12,201 | 10,042 | 32,642 | 24,470 | |
Less: Pre-delivery expenses | 287 | 1,379 | 671 | 3,381 | |
Vessel operating expenses before pre-delivery expenses | 11,914 | 8,663 | 31,971 | 21,089 | |
Ownership days | 1,569 | 1,477 | 4,650 | 3,632 | |
Daily Vessel Operating Expenses |
Net Income to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | |
Net income | 7,140 | 20,064 | 16,746 | 20,704 |
Add: Net interest and finance cost | 3,933 | 4,560 | 9,946 | 12,867 |
Add: Depreciation and amortization | 7,497 | 5,490 | 20,796 | 13,827 |
Add: Taxes | - | - | (28) | - |
EBITDA | 18,570 | 30,114 | 47,460 | 47,398 |
Add: Stock based compensation | 2,920 | 2,773 | 6,762 | 4,704 |
Add: Loss on extinguishment of debt | - | - | 1,285 | - |
Add: Loss on forward freight agreements, net | 335 | - | 407 | - |
Less: Gain on sale of vessel | - | 716 | - | 716 |
Less: Gain on spin-off | 2,800 | - | 2,800 | - |
Adjusted EBITDA | 19,025 | 32,171 | 53,114 | 51,386 |
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under
EBITDA and adjusted EBITDA are presented as we believe that these measures are useful to investors as a widely used means of evaluating operating profitability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. EBITDA and adjusted EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with
Adjusted Net income Reconciliation and calculation of Adjusted Net Income Per Share
(In thousands of
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | |
Net income | 7,140 | 20,064 | 16,746 | 20,704 |
Add: Stock based compensation | 2,920 | 2,773 | 6,762 | 4,704 |
Add: Loss on extinguishment of debt | - | - | 1,285 | - |
Add: Loss on forward freight agreements, net | 335 | - | 407 | - |
Less: Gain on spin-off | 2,800 | - | 2,800 | - |
Adjusted net income | 7,595 | 22,837 | 22,400 | 25,408 |
Adjusted net income per common share, basic | 0.04 | 0.14 | 0.13 | 0.17 |
Adjusted net income per common share, diluted | 0.04 | 0.11 | 0.13 | 0.14 |
Weighted average number of common shares outstanding, basic | 175,706,704 | 166,710,006 | 173,539,018 | 147,403,541 |
Weighted average number of common shares outstanding, diluted | 179,089,861 | 205,974,543 | 178,425,181 | 186,370,709 |
To derive Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we exclude non-cash items, as provided in the table above. We believe that Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as gain/(loss) on extinguishment of debt and other items which may vary from year to year, for reasons unrelated to overall operating performance. In addition, we believe that the presentation of the respective measure provides investors with supplemental data relating to our results of operations, and therefore, with a more complete understanding of factors affecting our business than with GAAP measures alone. Our method of computing Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:
(In thousands of
Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | |
Interest and finance costs, net | (3,933) | (4,560) | (9,946) | (12,867) |
Add: Amortization of deferred finance charges and other discounts | 641 | 816 | 1,916 | 2,692 |
Add: Amortization of convertible note beneficial conversion feature | - | 772 | - | 2,010 |
Cash interest and finance costs | (3,292) | (2,972) | (8,030) | (8,165) |
Fourth Quarter 2022 TCE Guidance:
As of the date hereof, approximately 72% of the Company fleet’s expected operating days in the fourth quarter of 2022 have been fixed at an estimated TCE of approximately
Operating Days | TCE | |
TCE - fixed rate (index-linked conversion) | 92 | 29,414 |
TCE - fixed rate | 49 | 29,183 |
TCE – index-linked unhedged | 1,403 | 14,989 |
Total / Average | 1,544 | 16,302 |
________________________
3 This guidance is based on certain assumptions and there can be no assurance that these TCE estimates, or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of the quarter for an index-linked
Third Quarter and Recent Developments:
Dividend Distribution for Q2 2022 and Declaration of Q3 2022 Dividend
On
Continuing its quarterly dividend payments, the Company also declared a cash dividend of
Redemption of the United Maritime Corporation (“United Maritime”) 6.5% Series C Cumulative Convertible Perpetual Preferred Shares
On
On
Announcement of the tender offer for the purchase of the Class E Common Share Purchase Warrants
On
Update on Stock Purchases by the CEO
In the third quarter to date, the Company’s Chairman and Chief Executive Officer, Mr.
Commercial Updates
M/V Patriotship
In
M/V Worldship
In
M/V Lordship
In
M/V Goodship
In
Financing Updates
Danish Ship Finance A/S
On
Conference Call:
The Company’s management will host a conference call to discuss financial results on
Slides and Audio Webcast:
There will be a live, and then archived, webcast of the conference call and accompanying slides available through the Company’s website. To listen to the archived audio file, visit our website, following Webcast & Presentations. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast, following this link.
Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.
Unaudited Condensed Consolidated Balance Sheets
(In thousands of
2022 | 2021* | |||||
ASSETS | ||||||
Cash and cash equivalents, restricted cash and term deposits | 25,567 | 47,126 | ||||
Vessels, net | 436,105 | 426,062 | ||||
Other assets | 27,576 | 14,023 | ||||
TOTAL ASSETS | 489,248 | 487,211 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt and other financial liabilities | 233,006 | 215,174 | ||||
Convertible notes | 10,533 | 7,573 | ||||
Other liabilities | 20,256 | 19,988 | ||||
Stockholders’ equity4 | 225,453 | 244,476 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 489,248 | 487,211 |
* Derived from the audited consolidated financial statements as of the period as of that date
________________________
4 On
Unaudited Condensed Consolidated Statements of Operations
(In thousands of
Three months ended | Nine months ended | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Vessel revenue, net | 32,963 | 48,179 | 95,476 | 96,409 | |||||
Fees from related parties | 1,017 | - | 1,017 | - | |||||
Revenue, net | 33,980 | 48,179 | 96,493 | 96,409 | |||||
Expenses: | |||||||||
Voyage expenses | (867 | ) | (3,910 | ) | (3,513 | ) | (14,477 | ) | |
Vessel operating expenses | (12,201 | ) | (10,042 | ) | (32,642 | ) | (24,470 | ) | |
Management fees | (324 | ) | (400 | ) | (1,077 | ) | (1,029 | ) | |
General and administrative expenses | (4,524 | ) | (4,419 | ) | (13,044 | ) | (9,715 | ) | |
Depreciation and amortization | (7,497 | ) | (5,490 | ) | (20,796 | ) | (13,827 | ) | |
Loss on forward freight agreements, net | (335 | ) | - | (407 | ) | - | |||
Gain on sale of vessel | - | 716 | - | 716 | |||||
Operating income | 8,232 | 24,634 | 25,014 | 33,607 | |||||
Other income / (expenses): | |||||||||
Interest and finance costs, net1 | (3,933 | ) | (4,560 | ) | (9,946 | ) | (12,867 | ) | |
Loss on extinguishment of debt | - | - | (1,285 | ) | - | ||||
Gain on spin-off | 2,800 | - | 2,800 | - | |||||
Other, net | 41 | (10 | ) | 163 | (36 | ) | |||
Total other expenses, net: | (1,092 | ) | (4,570 | ) | (8,268 | ) | (12,903 | ) | |
Net income | 7,140 | 20,064 | 16,746 | 20,704 | |||||
Net income per common share, basic | 0.04 | 0.12 | 0.10 | 0.14 | |||||
Net income per common share, diluted | 0.04 | 0.10 | 0.09 | 0.13 | |||||
Weighted average number of common shares outstanding, basic | 175,706,704 | 166,710,006 | 173,539,018 | 147,403,541 | |||||
Weighted average number of common shares outstanding, diluted | 179,089,861 | 205,974,543 | 178,425,181 | 186,370,709 |
Unaudited Condensed Consolidated Cash Flow Data
(In thousands of
Nine months ended | |||||
2022 | 2021 | ||||
Net cash provided by operating activities | 29,040 | 42,665 | |||
Vessels acquisitions and improvements | (38,565 | ) | (161,041 | ) | |
Investments | (10,139 | ) | - | ||
Term deposits | 1,500 | 600 | |||
Other fixed assets, net | (99 | ) | (65 | ||
Net cash used in investing activities | (47,303 | ) | (160,506 | ) | |
Proceeds from long-term debt and other financial liabilities | 80,300 | 148,470 | |||
Repayments of long-term debt and other financial liabilities | (57,769 | ) | (110,452 | ) | |
Repayments of convertible notes | (10,000 | ) | - | ||
Payments of financing and stock issuance costs | (1,022 | ) | (2,178 | ) | |
Dividends paid | (13,376 | ) | - | ||
Proceeds from issuance of common stock and warrants, net of underwriters fees and commissions | 70 | 98,232 | |||
Net cash (used in) / provided by financing activities | (1,797 | ) | 134,072 | ||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||
Cash paid during the period for interest | 8,283 | 8,064 | |||
Noncash investing activities | |||||
Vessels acquisitions and improvements | 2,765 | - | |||
Noncash financing activities | |||||
Dividends declared but not paid | 4,548 | - | |||
Units issued for repayment of subordinated long term-debt | - | 3,000 | |||
Repayment of subordinated long term-debt by issuance of units | - | (3,000 | ) |
About
The Company is incorporated in the
Please visit our company website at: www.seanergymaritime.com.
Certain Information Regarding the Tender Offer
The information in this press release describing the Company’s proposed tender offer is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Seanergy’s securities in the tender offer. The tender offer will be made only pursuant to the Offer to Purchase and the related materials that Seanergy will distribute to its warrantholders, as they may be amended or supplemented. Warrantholders should read such Offer to Purchase and related materials carefully and in their entirety because they contain important information, including the various terms and conditions of the tender offer. Warrantholders of Seanergy may obtain a free copy of the Tender Offer Statement on Schedule TO, the Offer to Purchase and other documents that Seanergy will file with the
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company's operating or financial results; the Company's liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
Source:
2022 GlobeNewswire, Inc., source