Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
global shipping company specializing in the ownership of dry bulk
vessels, today announced its results for the three months ended
March 31, 2020.
Earnings Highlights of the Three Months
Ended March 31, 2020:
- Revenues, net: $2.7 million for the three months ended
March 31, 2020, as compared to $0.9 million for the three months
ended March 31, 2019, respectively;
- Net (loss)/income: Net loss of $259,868 for the three
months ended March 31, 2020, as compared to net income of $55,969
for the three months ended March 31, 2019,
respectively;
- Loss per share: $0.07 loss per share for the three
months ended March 31, 2020, as compared to a loss per share of
$0.10 for the three months ended March 31, 2019,
respectively;
- EBITDA: $0.9 million for the three months ended March
31, 2020, as compared to $0.2 million for the three months ended
March 31, 2019, respectively;
- Fleet time charter equivalent of $12,008 per day for
the three months ended March 31, 2020, as compared to $9,799 for
the three months ended March 31, 2019, respectively;
and
- Cash of $13.4 million as of March 31,
2020.
Earnings Commentary:
First Quarter ended March 31, 2020 and
2019 Results
Time charter revenues, net of charterers’
commissions, for the three months ended March 31, 2020, increased
to $2.7 million from $0.9 million in the same period of 2019, or a
200.0% increase. This increase reflects the addition of both the
Magic Sun and the Magic Moon to our fleet on September 5, 2019 and
October 20, 2019, respectively. These additions correspondingly
increased our Available Days from 90 in 2019 to 214 in 2020, thus
generating additional revenues in the latter period. The daily time
charter equivalent (“TCE”) of our fleet for the first quarter of
2020 stood at $12,008, as compared to a daily TCE of $9,799 earned
during the same period ended March 31, 2019, or a 22.5% increase,
reflecting primarily the higher daily net revenues earned by the
Magic Sun and the Magic Moon in the period compared to those
generated by the Magic P in the same period of 2019.
Since most of our revenues for the first
quarter derived from time charters entered into before the COVID-19
pandemic began to have a significant economic effect, our results
for the first quarter were partially insulated from the impact of
COVID-19. However, during the three months ended March 31, 2020, we
experienced delays due to COVID 19 disruptions at a Chinese
shipyard related to the scheduled dry docking repair of the Magic P
and repositioned the vessel for dry dock to South Korea, which
resulted in incremental off-hire time and resultant decreased
operating revenues for the subject vessel in relation to the
revenues earned during the same period of 2019.
Daily vessel operating expenses for the period
decreased by $129, or 2.5%, to $5,088 from $5,217 in the respective
period of 2019. Daily company administration expenses were $470 in
the quarter ended March 31, 2020, compared to $276 in the
corresponding period of 2019, with the daily increase of $194, or
70.3%, stemming from additional fees and costs incurred as a result
of the continued reporting obligations we incurred as an
SEC-registered company as well as other administrative requirements
related to being a publicly listed company on the NASDAQ Capital
Market, or the NASDAQ, since February 11, 2019. We incurred no
public registration costs in the first quarter of 2020, whereas,
during the same period of 2019, we incurred costs amounting to
$133,295. Public registration costs relate to the non-recurring
administrative costs we incurred in connection with registration
and listing of our common shares on the Norwegian OTC market on
December 21, 2018, and the listing of our common shares on the
NASDAQ on February 11, 2019. During the first quarter of 2020, we
incurred interest costs in connection with our outstanding
indebtedness amounting to $852,807, which also included the
non-cash recurring amortization expenses and the non-cash
accelerated amortization expenses related to deferred financing
costs and to a beneficial conversion feature recognized in
connection with our $5.0 Million Senior Unsecured Convertible
Debentures or our $5.0 Million Convertible Debentures, aggregating
to $519,739, as further discussed below. We had no outstanding
indebtedness in the corresponding period of 2019. EBITDA for the
three months ended March 31, 2020, was $0.9 million compared to
$0.2 million in the same period of 2019, with the increase mainly
attributable to the above discussed period-to-period increase in
our operating revenues.
Liquidity / Financing / Cash Flow
Coverage Commentary:
As of March 31, 2020, total cash amounted to
$13.4 million, which included $0.5 million of non legally
restricted cash required under a $11.0 million secured term loan
financing that we concluded on November 22, 2019. The overall
improvement on our consolidated cash position of March 31, 2020, by
approximately $8.4 million, in relation to our cash position of
December 31, 2019, was mainly the result of our entering into
certain financing arrangements within the first quarter of 2020,
further discussed below.
As of March 31, 2020, pursuant to the issuance
within the first quarter of 2020 of (i) one commercial secured
credit facility amounting to $4.5 million and (ii) the $5.0 Million
Convertible Debentures, our total debt (including related party
debt, gross of unamortized deferred loan fees) was $22.9 million,
of which $10.0 million was repayable within one year, as compared
to $16.0 million of debt having been incurred as of December 31,
2019. As of the date of this press release, following the
conversions under the $5.0 Million Convertible Debentures
subsequent to March 31, 2020, our short-term debt obligations have
been reduced by approximately $1.9 million, therefore amounting to
$8.1 million.
During the three months ended March 31, 2020, we
generated net cash from operating activities of $0.04 million as
compared to $0.8 million in the corresponding period of 2019, which
represents a decrease of $0.76 million, or 95.0%. This decrease is
largely associated with the negative effect of variations in
working capital. As of March 31, 2020, we reported working capital
surplus of $3.3 million (December 31, 2019: $3.2 million).
Recent Business and
Financial Developments
Commentary:
Update on Conversion of $5.0 Million
Convertible Debentures and Number of Shares Issued and
Outstanding
Pursuant to the issuances on January 27, 2020,
February 10, 2020 and February 19, 2020, to an institutional
investor (the “Investor”) of three convertible debentures
(each, a “Convertible Debenture”) in original principal amounts of
$2.0 million, $1.5 million and $1.5 million each, respectively, as
of the date of this press release, the Investor elected to convert
an aggregate $4.2 million of principal and interest of the $5.0
Million Convertible Debentures (which comprises of $4.1 million of
principal and $0.1 million of interest) for 6,540,930 common shares
(the “Conversion Shares”). As of the same date, the first and
second Convertible Debentures have been repaid in full whereas,
there remains an outstanding balance of $0.9 million under the
third Convertible Debenture. The Convertible Debenture originally
matures twelve months from its issuance date, unless earlier
converted at the Investor’s option, at any time after issuance,
into common shares of the Company.
Following issuance of the Conversion Shares, we
have 9,859,042 common shares issued and outstanding as of the date
of this press release.
Nasdaq Capital Market Minimum Bid Price
Notice
On April 14, 2020, we received written
notification from the Nasdaq Stock Market that we were not in
compliance with the minimum $1.00 per share bid price requirement
for continued listing on the Nasdaq Capital Market and were
initially provided with 180 calendar days, or until October 12,
2020, to regain compliance with the subject requirement. On April
20, 2020, the Nasdaq Stock Market informed us that due to the
COVID-19 crisis, temporary relief has been granted related to
minimum listing bid price requirements and the Company’s compliance
period will be suspended until June 30, 2020, thus extending the
period to regain compliance to December 28, 2020. We intend to
monitor the closing bid price of our common stock during the
compliance period and are considering our options to regain
compliance with the NASDAQ minimum bid price requirement.
This deficiency can be automatically cured, if the closing
bid price of our common stock is $1.00 per share or higher for at
least ten consecutive business days during the grace period.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer
and Chief Financial Officer of Castor commented:
"We are pleased with our Q1 2020 performance,
despite the headwinds experienced, especially during the end of the
quarter due to the novel COVID-19 virus. Our chartering
strategy has insulated us in the short term from a very weak spot
charter market and has allowed us to continue operating on a cash
flow positive basis. In addition, we have placed ourselves in
the fortunate position of having significant on balance sheet
liquidity, that provides a cushion to withstanding a potentially
prolonged weaker market while at the same time also allows us to
take advantage of any attractive growth opportunities presented to
us."
Fleet Employment (as of June 2,
2020)
Vessel Name |
DWT |
Year Built |
Country ofconstruction |
Daily GrossCharter Rate |
Redelivery Date(Earliest/ Latest) |
Charterer |
Magic P |
76,453 |
2004 |
Japan |
$7,000 |
June 2020 |
June 2020 |
Comerge |
Magic Sun (1) |
75,311 |
2001 |
Korea |
$4,500 |
June 2020 |
June 2020 |
Richland |
Magic Moon |
76,602 |
2005 |
Japan |
$13,000 |
June 2020 |
September 2020 |
United |
(1) |
Within the next 2-3 days, the Magic Sun is expected to commence a
new time charter trip with the same charterer with duration of
approximately 25 days at a daily gross hire rate of
$5,500. |
|
|
Financial Results Overview:
|
Three Months Ended |
(expressed in U.S.
dollars) |
|
March
31,2020(unaudited) |
|
|
March
31,2019(unaudited) |
Time charter revenues, net |
$ |
2,725,277 |
|
|
$ |
927,056 |
|
Net (Loss)/Income |
$ |
(259,868 |
) |
|
$ |
55,969 |
|
Operating income |
$ |
582,141 |
|
|
$ |
49,717 |
|
EBITDA(1) |
$ |
905,274 |
|
|
$ |
223,174 |
|
Loss per common share |
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
(1) |
EBITDA is not a recognized measure under U.S. GAAP. Please refer to
Appendix B of this press release for the definition and
reconciliation of this measure to the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP. |
|
|
Fleet selected
financial and operational data:
Set forth below are selected operational and
financial statistical data of our fleet for each of the three
months ended March 31, 2020 and 2019 that the Company believes are
useful in better analysing trends in its results of operations:
|
|
Three Months Ended March
31, |
(expressed in U.S. dollars except for operational
data) |
|
2020 |
|
|
|
2019 |
|
Ownership Days (1) |
|
273 |
|
|
|
90 |
|
Available Days (2) |
|
214 |
|
|
|
90 |
|
Daily Time Charter Equivalent
(TCE)(3) |
$ |
12,008 |
|
|
$ |
9,799 |
|
Fleet Utilization (4) |
|
78.4 |
% |
|
|
100 |
% |
Daily vessel operating
expenses (5) |
$ |
5,088 |
|
|
$ |
5,217 |
|
Daily company administration
expenses (6) |
$ |
470 |
|
|
$ |
276 |
|
(1) |
Ownership days are the total number of calendar days in a period
during which we owned our vessel(s). |
(2) |
Available days are the Ownership days after subtracting off-hire
days associated with major repairs, vessel upgrades and dry
dockings or special or intermediate surveys (which do not include
ballast voyage days for which compensation has been received, if
any) and major unscheduled repair and off-hire days. |
(3) |
Daily TCE is not a recognized measure under U.S. GAAP. Please refer
to Appendix B of this press release for the definition and
reconciliation of this measure to the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP. |
(4) |
Fleet utilization is calculated by dividing the Available days
(which include ballast voyage days for which compensation has been
received) during a period by the number of Ownership days during
that period. |
(5) |
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by the Ownership days
for such period. |
(6) |
Daily company administration expenses are calculated by dividing
company administration expenses during a period by the number of
Ownership days during that period. |
|
|
APPENDIX A
CASTOR MARITIME INC.
Unaudited Condensed Consolidated Statements of
Comprehensive Income
(In U.S. dollars except for
shares and per share data) |
|
Three Months Ended March
31, |
|
|
2020 |
|
|
|
2019 |
|
REVENUES |
|
|
|
|
|
Time charter revenues, net of
charterers’ commissions |
$ |
2,725,277 |
|
|
$ |
927,056 |
|
EXPENSES |
|
|
|
|
|
Voyage expenses (including
related party commissions) |
|
(155,507 |
) |
|
|
(45,143 |
) |
Vessel operating expenses |
|
(1,389,070 |
) |
|
|
(469,517 |
) |
General and administrative
expenses |
|
|
|
|
|
- Company administration expenses |
|
(128,383 |
) |
|
|
(24,838 |
) |
- Public registration costs |
|
— |
|
|
|
(133,295 |
) |
Management fees -related
party |
|
(136,500 |
) |
|
|
(28,800 |
) |
Depreciation and
amortization |
|
(333,676 |
) |
|
|
(175,746 |
) |
Operating income |
$ |
582,141 |
|
|
$ |
49,717 |
|
Interest and finance costs,
net (including related party interest costs) |
|
(831,466 |
) |
|
|
8,541 |
|
Other expenses |
|
(10,543 |
) |
|
|
(2,289 |
) |
Net (loss)/income |
$ |
(259,868 |
) |
|
$ |
55,969 |
|
|
|
|
|
|
|
Loss per common share
(1) (basic and diluted) |
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
Weighted average
number of shares outstanding, basic and diluted: |
|
|
|
|
|
Common shares |
|
3,831,031 |
|
|
|
2,400,000 |
|
(1) |
Loss per common share, basic and diluted, for the three months
ended March 31, 2019, is calculated after taking into account the
effect of accrued cumulative dividends on the Series A Preferred
Shares. Following an agreement reached on October 1, 2019 between
the Series A Preferred Holders and the Company, all dividend
payment obligations on the Series A Preferred Shares have been
waived during the period from July 1, 2019 until December 31,
2021. |
|
|
CASTOR MARITIME INC.
Consolidated Condensed Balance Sheets and Cash Flow Data
(unaudited)(Expressed in U.S. Dollars—except for
share data)
|
|
March 31, 2020
|
|
December
31,
2019 |
ASSETS |
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
12,915,701 |
$ |
4,558,939 |
Due from related party |
|
672,236 |
|
759,386 |
Other current assets |
|
1,192,554 |
|
902,572 |
Total current assets |
|
14,780,491 |
|
6,220,897 |
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
Vessels, net |
|
23,854,253 |
|
23,700,029 |
Other non-currents assets |
|
1,261,430 |
|
500,000 |
Total non-current
assets, net |
|
25,115,683 |
|
24,200,029 |
Total assets |
|
39,896,174 |
|
30,420,926 |
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’
EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt, net –including related party |
|
9,386,811 |
|
1,522,895 |
Trade payables |
|
1,022,547 |
|
410,592 |
Accrued liabilities |
|
903,774 |
|
556,248 |
Deferred Revenue |
|
211,477 |
|
493,015 |
Total current liabilities |
|
11,524,609 |
|
2,982,750 |
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
Long-term debt, net -including
related party |
|
12,662,043 |
|
14,234,165 |
Total non-current
liabilities |
|
12,662,043 |
|
14,234,165 |
Total Liabilities |
|
24,186,652 |
|
17,216,915 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 6,652,149 and 3,318,112
shares, issued and outstanding as at March 31, 2020 and December
31, 2019, respectively |
|
6,652 |
|
3,318 |
Series A Preferred Shares-
480,000 shares issued and outstanding as at March 31, 2020 and
December 31, 2019, respectively |
|
480 |
|
480 |
Series B Preferred Shares-
12,000 shares issued and outstanding as at March 31, 2020 and
December 31, 2019, respectively |
|
12 |
|
12 |
Additional paid-in
capital |
|
15,525,448 |
|
12,763,403 |
Retained Earnings |
|
176,930 |
|
436,798 |
Total shareholders’
equity |
|
15,709,522 |
|
13,204,011 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
39,896,174 |
$ |
30,420,926 |
|
|
|
|
|
|
CASH FLOW DATA |
|
Three Months Ended
March
31, |
|
|
2020 |
|
|
|
2019 |
Net cash provided by operating
activities |
$ |
37,197 |
|
|
$ |
751,378 |
Net cash used in investing
activities |
|
(347,922 |
) |
|
|
— |
Net cash provided by financing
activities |
$ |
8,667,487 |
|
|
$ |
— |
|
|
|
|
|
|
|
APPENDIX B
Non-GAAP Financial
Information
Daily Time Charter Equivalent (TCE)
Rate. TCE rate, is a measure of the average daily revenue
performance of a vessel. For time charters, the TCE rate is
calculated by dividing total revenues (either time charter or
voyage charter 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. The TCE rate is not a measure of
financial performance under U.S. GAAP (non-GAAP measure), and
should not be considered as an alternative to Time charter
revenues, net, the most directly comparable GAAP measure, or any
other measure of financial performance presented in accordance with
U.S. GAAP. However, TCE rate is a standard shipping industry
performance measure used primarily to compare period-to-period
changes in a company's performance and assists our management in
making decisions regarding the deployment and use of our vessels
and in evaluating their financial performance. Our calculation of
TCE rates may not be comparable to that reported by other
companies. The following table reflects the calculation of our TCE
rates for the periods presented (amounts in U.S. dollars, except
for Available Days):
|
|
Three Months EndedMarch
31, |
(In U.S. dollars, except for Available Days) |
|
2020 |
|
|
|
2019 |
|
Time charter revenues,
net |
$ |
2,725,277 |
|
|
$ |
927,056 |
|
Voyage Expenses (including
related party commissions) |
|
(155,507 |
) |
|
|
(45,143 |
) |
Time charter equivalent revenues |
$ |
2,569,770 |
|
|
$ |
881,913 |
|
Available Days |
|
214 |
|
|
|
90 |
|
Time charter equivalent (TCE) rate |
$ |
12,008 |
|
|
$ |
9,799 |
|
|
|
|
|
|
|
|
|
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, such as investors, to assess our operating
performance. We believe that EBITDA assists our management and
investors 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 U.S. GAAP, does not represent and should not be
considered as an alternative to net income, operating income, cash
flow from operating activities or any other measure of financial
performance presented in accordance with U.S. GAAP. Therefore,
EBITDA as presented below may not be comparable to similarly titled
measures of other companies. The following table reconciles EBITDA
to net income, the most directly comparable U.S. GAAP financial
measure, for the periods presented:
Reconciliation of Net Income to EBITDA
|
|
Three-Months
EndedMarch
31, |
(In U.S. dollars) |
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
Net
(Loss)/Income |
$ |
(259,868 |
) |
|
$ |
55,969 |
|
Depreciation and
amortization |
|
333,676 |
|
|
|
175,746 |
|
Interest and finance costs,
net (including amortization of deferred financing costs and
beneficial conversion feature) |
|
831,466 |
|
|
|
(8,541 |
) |
EBITDA |
$ |
905,274 |
|
|
$ |
223,174 |
|
|
|
|
|
|
|
|
|
Cautionary Statement Regarding
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
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. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is 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 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 the Company’s view, could cause
actual results to differ materially from those discussed in the
forward‐looking statements include general dry bulk shipping market
conditions, including fluctuations in charterhire rates and vessel
values, the strength of world economies the stability of Europe and
the Euro, fluctuations in interest rates and foreign exchange
rates, changes in demand in the dry bulk shipping industry,
including the market for our vessels, changes in our operating
expenses, including bunker prices, dry docking and insurance costs,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, the length and severity of the
COVID-19 outbreak, the impact of public health threats and
outbreaks of other highly communicable diseases, the impact of the
expected discontinuance of LIBOR after 2021 on interest rates of
our debt that reference LIBOR, the availability of financing and
refinancing and grow our business, vessel breakdowns and instances
of off‐hire, risks associated with vessel construction, potential
exposure or loss from investment in derivative instruments,
potential conflicts of interest involving our Chief Executive
Officer, his family and other members of our senior management, and
our ability to complete acquisition transactions as planned. Please
see our filings with the Securities and Exchange Commission for a
more complete discussion of these and other risks and
uncertainties. The information set forth herein speaks only as of
the date hereof, and the Company disclaims any intention or
obligation to update any forward‐looking statements as a result of
developments occurring after the date of this communication.
CONTACT DETAILS For further information please
contact:
Petros PanagiotidisCastor Maritime Inc. Email:
info@castormaritime.com
Media Contact: Kevin Karlis Capital LinkEmail:
castormaritime@capitallink.com
Castor Maritime (NASDAQ:CTRM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Castor Maritime (NASDAQ:CTRM)
Historical Stock Chart
From Apr 2023 to Apr 2024