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 and six
months ended June 30, 2020.
Highlights of the Three Months Ended
June 30, 2020:
- Revenues, net: $2.6 million
for the three months ended June 30, 2020, as compared to $1.0
million for the three months ended June 30, 2019, or a 160% period
to period increase;
- Net (loss)/income: Net loss
of $144,600 for the three months ended June 30, 2020, as compared
to net income of $260,603 for the three months ended June 30,
2019;
- Loss per share: $0.01 loss
per share for the three months ended June 30, 2020, as compared to
a loss per share of $0.47 for the three months ended June 30,
2019;
- EBITDA(1): $1.0 million for
the three months ended June 30, 2020, as compared to $0.4 million
for the three months ended June 30, 2019, or a 150% period to
period increase;
- Average fleet time charter
equivalent (“TCE”)(1) of $9,090 per day for the three months ended
June 30, 2020, as compared to $10,339 for the three months ended
June 30, 2019, or a 12% period to period decrease;
- On June 26, 2020,
successfully concluded an underwritten public offering raising
gross proceeds of $20.7 million;
- Cash and restricted cash of
$31.3 million as of June 30, 2020, or a 514% increase since
December 31, 2019; and
- On June 30, 2020, announced
the acquisition of the M/V Magic Rainbow, a 2007 Chinese-built
Panamax dry bulk carrier for a purchase price of $7.85 million from
an unaffiliated third-party seller. The M/V Magic Rainbow was
delivered to us on August 8, 2020.
Earnings Highlights of the Six Months
Ended June 30, 2020:
- Revenues, net: $5.3 million
for the six months ended June 30, 2020, as compared to $1.9 million
for the six months ended June 30, 2019, or a 179% period to period
increase;
- Net (loss)/income: Net loss
of $404,468 for the six months ended June 30, 2020, as compared to
net income of $316,572 for the six months ended June 30,
2019;
- Loss per share: $0.05 loss
per share for the six months ended June 30, 2020, as compared to a
loss per share of $0.56 for the six months ended June 30,
2019;
- EBITDA(1): $1.9 million for
the six months ended June 30, 2020, as compared to $0.6 million for
the six months ended June 30, 2019, or a 217% period to period
increase; and
- Average fleet TCE(1) of
$10,372 per day for the six months ended June 30, 2020, as compared
to $10,071 for the six months ended June 30, 2019, or a 3% period
to period increase.
(1) EBITDA and TCE rates are not
recognized measures under United States generally accepted
accounting principles (“U.S. GAAP”). Please refer to Appendix B of
this press release for the definition and reconciliation of these
measures to the most directly comparable financial measure
calculated and presented in accordance with U.S. GAAP.
Recent Business/Financial
Highlights:
- On July 15, 2020, we
successfully concluded a registered direct offering of common
shares and a concurrent private placement of warrants to purchase
common shares (the “July Equity Offering”), resulting in gross
proceeds of $17.3 million; and
- On July 28, 2020, we
entered, though a wholly-owned subsidiary, into an agreement to
purchase a 2010 Japan-built Panamax dry bulk carrier (to be renamed
M/V Magic Horizon), for a purchase price of $12.75 million from an
unaffiliated third-party seller, which we expect to take delivery
of either at the end of the third quarter or the beginning of the
fourth quarter of 2020.
Earnings Commentary:
Second Quarter ended June 30, 2020 and
2019 Results
Time charter revenues, net of charterers’
commissions, for the three months ended June 30, 2020, increased to
$2.6 million from $1.0 million in the same period of 2019, or a
160.0% increase. This increase reflects the addition of both the
M/V Magic Sun and the M/V Magic Moon to our fleet on September 5,
2019 and October 20, 2019, respectively. These additions
correspondingly increased our Available Days from 91 in 2019 to 273
in 2020, thus generating incremental revenues in the latter period.
The daily TCE of our fleet for the second quarter of 2020 stood at
$9,090, as compared to a daily TCE of $10,339 earned during the
same period ended June 30, 2019, or a 12.1% decrease, reflecting
primarily the lower daily net revenues earned by the M/V Magic P
and the M/V Magic Sun in the three months ended June 30, 2020
compared to those generated by the M/V Magic P in the same period
of 2019 given their exposure (when faced with charter renewal) to a
charter market adversely affected by the COVID-19 pandemic.
The increase in operating expenses by $810,523,
from $404,743 in the second quarter of 2019 to $1,215,266 in the
second quarter of 2020 as well as the increase depreciation and
amortization costs by $190,737, from $169,959 in the second quarter
of 2019 to $360,696 in the second quarter of 2020 reflect, as
discussed above, the addition to our fleet of the M/V Magic Sun and
the M/V Magic Moon that correspondingly increased our Ownership
days from 91 in 2019 to 273 in 2020.
Management fees in the second quarter of 2020
amounted to $136,500, whereas, in the same period of 2019,
management fees totaled $29,120. The increase by $107,380, or
368.8%, in management fees is due to i) the addition to our fleet
of the M/V Magic Sun and the M/V Magic Moon that correspondingly
increased our Ownership days from 91 in 2019 to 273 in 2020 and ii)
a lesser extent, the increase in the management fee of the M/V
Magic P to $500 from $320 effective January 1, 2020, in order to be
aligned with that of the remaining fleet.
Daily company administration expenses were $400
in the quarter ended June 30, 2020, compared to $973 in the
corresponding period of 2019, with the daily decrease of $573, or
58.9%, stemming from the allocation of company administration
expenses to a larger pool of vessels in the second quarter of 2020
versus the corresponding quarter of 2019. During the second quarter
of 2020, we incurred interest costs in connection with our
outstanding debt amounting to $805,066, 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 an amount of $524,366, as further discussed below. We had no
outstanding indebtedness in the corresponding period of 2019.
EBITDA for the three months ended June 30, 2020
was $1.0 million compared to $0.4 million in the same period of
2019, with the increase mainly attributable to the above discussed
period-to-period increase in our operating revenues.
Recent Business and
Financial Developments
Commentary:
Impact of COVID-19
The COVID-19 pandemic has had and continues to
have a significant negative impact on the global economy and the
demand for shipping regionally as well as globally.
We believe the COVID-19 pandemic has resulted in
lower dry bulk rates since March 2020 than those that could have
been achieved in the absence of the virus, given the lower demand
for some of the cargoes that we and our peers carry. As a result of
this disruption, global economies have grounded to a halt which
consequently adversely affected the derived demand for shipping
transportation. As a result, two of our vessels which came up for
charter renewal in the first and second quarters of 2020 were
employed at comparably less favorable charter rates than those
achieved during 2019 and those expected before the COVID-19
pandemic. However, from June 2020 onwards, we have seen a rebound
in charter rates for the asset class we own and operate and we have
been able to recharter vessels that were open for renewal at
improved charter rates compared to those prevailing in the first
quarter of 2020 and up to May 2020.
Our crews are also adversely affected by the
COVID-19 pandemic. Due to quarantine restrictions placed on
embarking and disembarking crew members as well as additional
procedures required when using commercial aviation and other forms
of public transportation, our crews have had difficulty embarking
and disembarking on our ships. Although the restrictions have, in
certain cases, delayed crew embarking and disembarking on our
ships, they have not materially functionally affected our ability
to crew out our vessels. Despite the fact that our ability to crew
out our vessels may present operational risks that we cannot
predict, we continue to monitor the situation with utmost care for
the health and safety of our crew, while maximizing our efforts to
ensure uninterrupted operations for our customers.
Given the uncertain nature of the socioeconomic
and political circumstances arising from the COVID-19 pandemic, the
duration of any business disruptions as well as any related
financial impact cannot be further assessed at this point in time,
but could further affect, at a lesser or more significant extent,
our business, results of operations and financial condition.
Update on $5.0 Million Convertible
Debentures
As previously announced, on January 27, 2020,
February 10, 2020 and February 19, 2020, we issued three
convertible debentures (each, a “Convertible Debenture”) to an
institutional investor (the “Investor”) in original principal
amounts of $2.0 million, $1.5 million and $1.5 million each. As of
June 8, 2020, the Investor converted an aggregate $5.1 million of
principal and interest under the $5.0 Million Convertible
Debentures (which comprised of the full $5.0 million principal
amount and $0.1 million of interest) for 8,042,078 common shares
(the “Conversion Shares”). As a result, as of the date of this
press release, the $5.0 Million Convertible Debentures have been
settled in their entirety.
June Equity Offering
On June 23, 2020, we entered into an agreement
with Maxim Group LLC, or Maxim, acting as underwriter pursuant to
which we offered 59,110,000 units, each unit consisting of (i) one
common share or a pre-funded warrant to purchase one common share
at an exercise price equal to $0.01 per common share (a “Pre-Funded
Warrant”), and (ii) one Class A Warrant to purchase one common
share (a “Class A Warrant”), for $0.35 per unit (or $0.34 per unit
including a pre-funded warrant), or the June Equity Offering. The
June Equity Offering, which was completed on June 26, 2020,
resulted in the issuance of 59,082,686 common shares (the “June
Equity Offering Shares”) and 59,110,000 Class A Warrants with an
exercise price of $0.35 per common share. We raised gross and net
cash proceeds from this transaction of $20.7 million and $18.6
million, respectively. Between June 26, 2020 and September 8, 2020,
there were subsequent exercises of 3,019,500 Class A Warrants which
resulted in the issuance of an equivalent number of common shares
(the “Class A Warrant Shares”) and proceeds of approximately $1.1
million.
Acquisition of the M/V Magic
Rainbow
On June 30, 2020, we entered into an agreement
to acquire the M/V Magic Rainbow, a 2007 Chinese-built Panamax dry
bulk carrier, for a gross purchase price of $7.85 million from an
unaffiliated third-party seller. On August 8, 2020, we took
delivery of the M/V Magic Rainbow and, on August 12, 2020, the M/V
Magic Rainbow commenced employment under a period time charter with
an expected term of minimum three months and up to a maximum of
five months at a gross daily charter hire rate of $10,300.
July Equity Offering
On July 12, 2020, we entered into a securities
purchase agreement with certain unaffiliated institutional
investors for the issuance and sale of an aggregate of 57,750,000
of our common shares (the “July Equity Offering Shares”) in a
registered direct offering, while, in a concurrent private
placement we issued and sold warrants to purchase up to 57,750,000
of our common shares at an exercise price of $0.35 per common
share. The July Equity Offering was completed on July 15, 2020 and
resulted in gross proceeds of approximately $17.3 million. We
intend to use part of the net proceeds from the July Equity
Offering and the June Equity Offering discussed above to finance
the acquisitions of the M/V Magic Rainbow and the M/V Magic
Horizon, and any other potential vessel acquisitions as relevant
opportunities may arise. If we are unable to complete any vessel
acquisition apart from that of the M/V Magic Rainbow and the M/V
Magic Horizon, we plan to use the net proceeds of the July Equity
Offering and the June Equity Offering for capital expenditures,
working capital or for other general investment purposes, or a
combination thereof.
Following the issuance of the Conversion Shares,
the June Equity Offering Shares, the Class A Warrant Shares and the
July Equity Offering Shares, we have, as of the date of this press
release, 131,212,376 common shares issued and outstanding.
Acquisition of new Panamax vessel (to be
renamed M/V Magic Horizon)
On July 28, 2020, we entered into an agreement
to acquire a 2010 Japanese-built Panamax dry bulk carrier for a
gross purchase price of $12.75 million from an unaffiliated
third-party seller. The acquisition is expected to be consummated
by taking delivery of the vessel either at the end of the third
quarter or the beginning of the fourth quarter of 2020.
Following delivery of this vessel, the number of
the vessels in our fleet shall increase to five (5) Panamax dry
bulk carriers and the size of our fleet shall have been increased
by 500% since June 30, 2019.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer
and Chief Financial Officer of Castor commented:
"Despite the operational challenges the industry
is facing with respect to the COVID-19 pandemic, we are very
satisfied with our Q2 2020 performance, as we have been able to
more than double our revenues compared to the same quarter last
year, mainly attributed to our fleet growth. Amidst these
unprecedented times, we have been able to raise substantial capital
which we have partly utilised for the further expansion of our
fleet, remaining committed to our growth plan. In parallel, our
strong liquidity position provides us with a cushion to withstand a
potentially prolonged weaker market due to the COVID-19 pandemic
but also allows us to take advantage of further growth
opportunities."
Liquidity / Financing / Cash Flow
Commentary:
As of June 30, 2020, total cash amounted to
$31.3 million, which included $0.5 million of non-legally
restricted cash required under the $11.0 million secured term loan
financing that we concluded in November 2019. The significant
improvement of our consolidated cash position as of June 30, 2020,
by approximately $26.2 million, in relation to our cash position as
of December 31, 2019, was mainly the result of us concluding the
June Equity Offering which resulted in net cash proceeds of $18.6
million, as discussed above, as well as entering into certain
financing arrangements within the first quarter of 2020, as further
discussed below.
As of June 30, 2020, pursuant to the issuance
within the first quarter of 2020 of one commercial secured credit
facility amounting to $4.5 million, our total debt (including $5.0
million of related party debt which matures in March 2021, gross of
unamortized deferred loan fees) was $19.6 million of which $7.2
million was repayable within one year, as compared to $16.0 million
of debt having been incurred as of December 31, 2019. During the
first quarter of 2020, we also issued the $5.0 Million Convertible
Debentures, which, as of June 8, 2020, were all converted into our
common shares, and thus, did not require any cash outlay from
us.
During the three months ended June 30, 2020, we
used cash in operating activities in the amount of $0.4 million as
compared to $0.01 million used in the corresponding period of 2019,
which represents an increase in cash used in operating activities
of $0.4 million consisting of net income after noncash items of
$0.6 million and $0.4 million respectively plus a decrease in
working capital of $1.0 in the second quarter of 2020 versus a
decrease of $0.4 million of working capital in the corresponding
quarter of 2019. As of June 30, 2020, we reported a working capital
surplus of $24.4 million (December 31, 2019: $3.2 million).
Fleet Employment (as of September 11,
2020):
Vessel Name |
DWT |
Year Built |
Country ofconstruction |
Daily GrossCharterRate |
Estimated Redelivery Date(Earliest/ Latest) |
Magic P |
76,453 |
2004 |
Japan |
$9,000 |
December 2020 |
March 2021 |
Magic Sun |
75,311 |
2001 |
Korea |
$12,500 |
November 2020 |
December 2020 |
Magic Moon |
76,602 |
2005 |
Japan |
$9,000 |
September 2020 |
October 2020 |
Magic Rainbow |
73,593 |
2007 |
China |
10,300 |
November 2020 |
January 2021 |
|
|
|
|
|
|
|
Financial Results Overview:
|
Three Months Ended |
|
Six Months Ended |
(expressed in U.S.
dollars) |
|
June 30,
2020(unaudited) |
|
|
June 30,
2019(unaudited) |
|
|
June 30,
2020(unaudited) |
|
|
June 30,
2019(unaudited) |
Time charter revenues, net |
$ |
2,585,659 |
|
|
$ |
953,667 |
|
|
$ |
5,310,936 |
|
|
$ |
1,880,723 |
|
Net (Loss) / Income |
$ |
(144,600 |
) |
|
$ |
260,603 |
|
|
$ |
(404,468 |
) |
|
$ |
316,572 |
|
Operating income |
$ |
659,851 |
|
|
$ |
249,661 |
|
|
$ |
1,241,992 |
|
|
$ |
299,378 |
|
EBITDA (1) |
$ |
1,018,366 |
|
|
$ |
419,241 |
|
|
$ |
1,923,640 |
|
|
$ |
642,415 |
|
Loss per common share (2) |
$ |
(0.01 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.56 |
) |
(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.(2) Loss per common share, basic
and diluted, is calculated after taking into account the effect of
cumulative dividends on the Series A Preferred Shares, as
applicable in each period. On October 10, 2019, we reached an
agreement with our Series A Preferred holders to Amend and Restate
the Statement of Designations of the Series A Preferred Shares (the
“Agreement”). The Agreement, amongst other amended terms,
prescribed that dividends on the Series A Preferred Shares no
longer accumulate during the period from July 1, 2019 up to and
including December 31, 2021.
Fleet selected
financial and operational data:
Set forth below are selected operational and
financial statistical data of our fleet for each of the three and
six months ended June 30, 2020 and 2019 that we believe are useful
in better analysing trends in our results of operations:
|
|
Three Months EndedJune
30, |
|
Six Months
EndedJune
30, |
(expressed in U.S. dollars except for operational
data) |
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|
Ownership days (1) |
|
273 |
|
|
|
91 |
|
|
546 |
|
|
|
181 |
|
Available days (2) |
|
273 |
|
|
|
91 |
|
|
487 |
|
|
|
181 |
|
Daily TCE(3) |
$ |
9,090 |
|
|
$ |
10,339 |
|
$ |
10,372 |
|
|
$ |
10,071 |
|
Fleet Utilization (4) |
|
100.0 |
% |
|
|
100.0 |
% |
|
89.2 |
% |
|
|
100.0 |
% |
Daily vessel operating
expenses (5) |
$ |
4,452 |
|
|
$ |
4,448 |
|
$ |
4,770 |
|
|
$ |
4,830 |
|
Daily company administration
expenses (6) |
$ |
400 |
|
|
$ |
973 |
|
$ |
435 |
|
|
$ |
627 |
|
(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, dry dockings
or special or intermediate surveys and major unscheduled repair and
off-hire days. Available days include ballast voyage days for which
compensation has been received, if any. |
(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 EndedJune
30, |
|
|
Six Months
EndedJune
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Time charter revenues, net of
charterers’ commissions |
$ |
2,585,659 |
|
|
$ |
953,667 |
|
|
$ |
5,310,936 |
|
|
$ |
1,880,723 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses (including
related party commissions) |
|
(104,093 |
) |
|
|
(12,806 |
) |
|
|
(259,600 |
) |
|
|
(57,949 |
) |
Vessel operating expenses |
|
(1,215,266 |
) |
|
|
(404,743 |
) |
|
|
(2,604,336 |
) |
|
|
(874,260 |
) |
General and administrative
expenses |
|
|
|
|
|
|
|
|
|
|
|
- Company administration expenses |
|
(109,253 |
) |
|
|
(88,582 |
) |
|
|
(237,636 |
) |
|
|
(113,420 |
) |
- Public registration costs |
|
— |
|
|
|
1,204 |
|
|
|
— |
|
|
|
(132,091 |
) |
Management fees -related
party |
|
(136,500 |
) |
|
|
(29,120 |
) |
|
|
(273,000 |
) |
|
|
(57,920 |
) |
Depreciation and
amortization |
|
(360,696 |
) |
|
|
(169,959 |
) |
|
|
(694,372 |
) |
|
|
(345,705 |
) |
Operating income |
$ |
659,851 |
|
|
$ |
249,661 |
|
|
$ |
1,241,992 |
|
|
$ |
299,378 |
|
Interest and finance costs,
net (including related party interest costs) |
|
(802,270 |
) |
|
|
11,321 |
|
|
|
(1,633,736 |
) |
|
|
19,862 |
|
Other expenses |
|
(2,181 |
) |
|
|
(379 |
) |
|
|
(12,724 |
) |
|
|
(2,668 |
) |
Net (loss) / income |
$ |
(144,600 |
) |
|
$ |
260,603 |
|
|
$ |
(404,468 |
) |
|
$ |
316,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share
(1) (basic and diluted) |
$ |
(0.01 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.56 |
) |
Weighted average
number of Common shares outstanding, basic and
diluted: |
|
|
|
|
|
|
|
|
|
|
|
Common shares |
|
12,224,266 |
|
|
|
2,400,000 |
|
|
|
8,027,649 |
|
|
|
2,400,000 |
|
(1) Loss per common share, basic and
diluted, for the three and six months ended June 30, 2019, is
calculated after taking into account the effect of accrued
cumulative dividends on the Series A Preferred Shares. Following
our entry into the Agreement, 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)
|
|
June 30,
2020 |
|
|
|
December
31,
2019 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
30,754,641 |
|
|
$ |
4,558,939 |
|
Due from related party |
|
470,848 |
|
|
|
759,386 |
|
Other current assets |
|
1,548,253 |
|
|
|
902,572 |
|
Total current assets |
|
32,773,742 |
|
|
|
6,220,897 |
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
Vessels, net |
|
23,523,913 |
|
|
|
23,700,029 |
|
Other non-currents assets |
|
1,231,074 |
|
|
|
500,000 |
|
Total non-current
assets, net |
|
24,754,987 |
|
|
|
24,200,029 |
|
Total assets |
|
57,528,729 |
|
|
|
30,420,926 |
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Current portion of long-term
debt, net –including related party |
|
7,091,062 |
|
|
|
1,522,895 |
|
Trade payables |
|
373,604 |
|
|
|
410,592 |
|
Accrued liabilities |
|
934,087 |
|
|
|
556,248 |
|
Deferred Revenue |
|
— |
|
|
|
493,015 |
|
Total current liabilities |
|
8,398,753 |
|
|
|
2,982,750 |
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Long-term debt, net -including
related party |
|
12,137,158 |
|
|
|
14,234,165 |
|
Total non-current
liabilities |
|
12,137,158 |
|
|
|
14,234,165 |
|
Total Liabilities |
|
20,535,911 |
|
|
|
17,216,915 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 70,442,876 and 3,318,112
shares, issued and outstanding as at June 30, 2020 and December 31,
2019, respectively |
|
70,443 |
|
|
|
3,318 |
|
Series A Preferred Shares-
480,000 shares issued and outstanding as at June 30, 2020 and
December 31, 2019, respectively |
|
480 |
|
|
|
480 |
|
Series B Preferred Shares-
12,000 shares issued and outstanding as at June 30, 2020 and
December 31, 2019, respectively |
|
12 |
|
|
|
12 |
|
Additional paid-in
capital |
|
36,889,553 |
|
|
|
12,763,403 |
|
Retained Earnings |
|
32,330 |
|
|
|
436,798 |
|
Total shareholders’
equity |
|
36,992,818 |
|
|
|
13,204,011 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
57,528,729 |
|
|
$ |
30,420,926 |
|
|
|
|
|
|
|
CASH FLOW
DATA |
|
Three Months EndedJune
30, |
|
|
Six Months Ended
June
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net cash (used in) / provided
by operating activities |
$ |
(427,817 |
) |
|
$ |
(12,415 |
) |
|
$ |
(390,619 |
) |
|
$ |
738,963 |
|
Net cash used in investing
activities |
|
(40,713 |
) |
|
|
— |
|
|
|
(388,635 |
) |
|
|
— |
|
Net cash provided by / (used
in) financing activities |
$ |
18,307,470 |
|
|
$ |
(40,250 |
) |
|
$ |
26,974,956 |
|
|
$ |
(40,250 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX B
Non-GAAP Financial
Information
Daily 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, management believes that the TCE rate
provides meaningful information to our investors since it compares
daily net earnings generated by our vessels irrespective of the mix
of charter types (i.e., time charters trips, period time charters
and voyage charters) under which our vessels are employed between
the periods while it further assists our management in making
decisions regarding the deployment and use of our vessels and in
evaluating our 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 EndedJune
30, |
|
|
Six Months
EndedJune
30, |
(In U.S. dollars, except for Available Days) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Time charter revenues,
net |
$ |
2,585,659 |
|
|
$ |
953,667 |
|
|
$ |
5,310,936 |
|
|
$ |
1,880,723 |
|
Voyage Expenses (including
related party commissions) |
|
(104,093 |
) |
|
|
(12,806 |
) |
|
|
(259,600 |
) |
|
|
(57,949 |
) |
TCE revenues |
$ |
2,481,566 |
|
|
$ |
940,861 |
|
|
$ |
5,051,336 |
|
|
$ |
1,822,774 |
|
Available Days |
|
273 |
|
|
|
91 |
|
|
|
487 |
|
|
|
181 |
|
TCE rate |
$ |
9,090 |
|
|
$ |
10,339 |
|
|
$ |
10,372 |
|
|
$ |
10,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (Loss)/Income to
EBITDA
|
|
Three Months
EndedJune
30, |
|
|
Six Months
EndedJune
30, |
(In U.S. dollars) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) /
Income |
$ |
(144,600 |
) |
|
$ |
260,603 |
|
|
$ |
(404,468 |
) |
|
$ |
316,572 |
|
Depreciation and
amortization |
|
360,696 |
|
|
|
169,959 |
|
|
|
694,372 |
|
|
|
345,705 |
|
Interest and finance costs,
net (including amortization of deferred financing costs and
beneficial conversion feature) |
|
802,270 |
|
|
|
(11,321 |
) |
|
|
1,633,736 |
|
|
|
(19,862 |
) |
EBITDA |
$ |
1,018,366 |
|
|
$ |
419,241 |
|
|
$ |
1,923,640 |
|
|
$ |
642,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. We desire to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and 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 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 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 we disclaim 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
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