Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and year ended December 31, 2020.
Highlights of the Fourth Quarter Ended
December 31, 2020:
- Revenues, net: $4.4 million for the three months ended
December 31, 2020, as compared to $2.8 million for the three months
ended December 31, 2019, or a 57% period to period
increase;
- Net loss/income: Net loss of $0.8 million for the three
months ended December 31, 2020, as compared to net income of $0.5
million for the three months ended December 31, 2019;
- Loss/Earnings per common share: $0.01 loss per share
for the three months ended December 31, 2020, as compared to
earnings per share of $0.20 for the three months ended December 31,
2019;
- EBITDA(1): $0.3
million for the three months ended December 31, 2020, as compared
to $1.1 million for the three months ended December 31, 2019, or a
73% period to period decrease;
- Average fleet time charter equivalent
(“TCE”)(1) rate of $10,257 per
day for the three months ended December 31, 2020, as compared to
$10,789 for the three months ended December 31, 2019, or a 5%
period to period decrease;
- Cash and restricted cash of $9.4 million as of December
31, 2020, as compared to $5.1 million as of December 31, 2019, or a
84% period to period increase; and
- On October 9, 2020 and October 15, 2020, took
successful deliveries of the M/V Magic
Horizon and the M/V Magic
Nova,
respectively.
Earnings Highlights of the Year Ended
December 31, 2020:
- Revenues, net: $12.5 million for the year ended
December 31, 2020, as compared to $6.0 million for the year ended
December 31, 2019, or a 108% period to period
increase;
- Net loss/income: Net loss of $1.8 million for the year
ended December 31, 2020 which includes one off non-cash interest
expenses of $1.1 million, as compared to net income of $1.1 million
for the year ended December 31, 2019;
- Loss/Earnings per common share: $0.03 loss per share
for the year ended December 31, 2020, as compared to earnings per
share of $0.31 for the year ended December 31, 2019;
- EBITDA(1): $2.3
million for year ended December 31, 2020, as compared to $2.2
million for the year ended December 31, 2019, respectively, or a 5%
period to period increase; and
- Average fleet time charter equivalent
(“TCE”)(1) rate of $9,765 per day
for the year ended December 31, 2020, as compared to $10,471 for
the year ended December 31, 2019, or a 7% period to period
decrease;
(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.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer
and Chief Financial Officer of Castor commented:
“2020 was a very challenging year, with
significant disruptions in global trade flows, and in the working
environment which we are still experiencing as we strive to ensure
the timely and safe repatriation of our seafarers. Despite these
challenges, we progressed on our growth strategy and decisively
executed on our plans. This success is a testament to our
dedication and the strength of our business.
“In 2020 we doubled our fleet size, growing from
three vessels to six vessels by year’s end; this growth has
continued in 2021 with the addition, once all deliveries are
completed, of another eight vessels, increasing the size of
our fleet to fourteen vessels. Two of these vessels, our Aframax
LR2 tankers, mark our initial foray into the tanker market and
allow us to diversify across shipping sectors.
“Finally, the dry bulk shipping market is
steadily improving, and market participants expect a robust rate
environment throughout 2021, which, if it materializes, is expected
to drive our revenues higher.”
Earnings Commentary:
Fourth Quarter ended December 31, 2020
and 2019 Results
Time charter revenues, net of charterers’
commissions, for the three months ended December 31, 2020,
increased to $4.4 million from $2.8 million in the same period of
2019, or a 57% increase. This increase reflects (i) the operation
for a full quarter in 2020 of the M/V Magic Moon that was added to
our fleet on October 20, 2019 and (ii) increased ownership days in
the fourth quarter of 2020 following the deliveries of the M/V
Magic Rainbow on August 8, 2020, the M/V Magic Horizon on October
9, 2020 and the M/V Magic Nova on October 15, 2020. These additions
correspondingly increased our Available days (defined below) from
249 for the three months ended December 31, 2019 to 434 for the
three months ended December 31, 2020, thus generating incremental
revenues in the latter period. The daily TCE rate of our fleet for
the fourth quarter of 2020 stood at $10,257, as compared to a daily
TCE rate of $10,789 earned during the same period ended December
31, 2019, or an approximate 5% decrease, reflecting the lower
average charter hire rates earned by certain of our vessels in the
three months ended December 31, 2020 compared to those earned in
the same period of 2019, which we primarily attribute to the
adverse market conditions caused by the ongoing COVID-19
pandemic.
The increase in operating expenses by $1.8
million, from $1.3 million in the fourth quarter of 2019 to $3.1
million in the fourth quarter of 2020, as well as the increased
depreciation costs by $0.4 million, from $0.3 million in the fourth
quarter of 2019 to $0.7 million in the fourth quarter of 2020
reflect, as discussed above, the increase in our Ownership days
(defined below) from 257 in 2019 to 529 in 2020. Daily vessel
operating expenses for the period increased by $598, or 12%, to
$5,818 from $5,220 in the respective period of 2019. Contributing
to this increase were principally (i) the increased spares
maintenance costs incurred on the M/V Magic Sun, the M/V Magic
Rainbow and the M/V Magic Moon, as well as (ii) elevated crew costs
for the vast majority of our fleet resulting from difficulties and
delays in embarking and disembarking crew on our vessels amid the
ongoing COVID-19 pandemic.
Management fees in the fourth quarter of 2020
amounted to approximately $0.5 million, whereas, in the same period
of 2019 management fees totaled approximately $0.1 million. The
increase by $0.4 million, or 400%, in management fees reflects (i)
our incremental Ownership days for which our managers charge us
with a daily management fee, following the acquisitions discussed
above, (ii) the increase, effective September 1, 2020, in our daily
management fees for the technical management of our fleet from $500
to $600 per vessel and (iii) the $250 per day per vessel for the
provision of the relevant services by our commercial and
administration manager.
Daily company administration expenses were
$1,133 in the quarter ended December 31, 2020, compared to $651 in
the corresponding period of 2019, with the daily increase of $482,
or 74%, stemming from the flat fee we pay our commercial and
administration manager with effect from September 1, 2020.
During the fourth quarter of 2020, we incurred
net interest costs and finance costs mostly in connection with our
outstanding debt amounting to $261,709 and had average outstanding
indebtedness of $18.8 million. During the same period in 2019, we
had average outstanding indebtedness of $12.7 million, which
explains the lower interest and finance costs of $192,314 incurred
during that period.
EBITDA for the three months ended December 31,
2020 was $0.3 million compared to $1.1 million in the same period
of 2019, with the variation mainly attributable to the above
discussed increase in operating and company administration expenses
versus the compared period.
Recent Business and
Financial Developments
Commentary:
Update on COVID-19 Impact
The COVID-19 pandemic continues to cause
turbulence in the shipping industry, particularly in the tanker and
dry bulk sectors. Although the dry bulk charter market has shown
signs of recovery from the low rates seen in the first half of
2020, the tanker charter market remains depressed. We assess that
the tanker charter rates are likely to continue to be exposed to
volatility in the near term. We further believe that the ongoing
COVID-19 pandemic has caused an impact on our vessel revenues
earned during 2020, since, certain vessels in our fleet which came
up for charter renewal in 2020 were employed at comparably less
favorable charter rates than those achieved during 2019 and those
anticipated before the COVID-19 pandemic.
Further, containment measures and quarantine
restrictions adopted, and still mandated, by many countries
worldwide have caused significant impact on our ability to embark
and disembark crew members and on our seafarers themselves. As a
result, during 2020 and up to the date of this press release, we
have encountered certain instances of prolonged delays in embarking
and disembarking crew onto our ships associated with deviation time
for quarantine checks, waiting time in various ports where crew
changes were effected and positioning our vessels to countries in
which we can rotate crew in compliance with such measures. These
delays and deviations have resulted in increased operating expenses
for our vessels, as well as bunker fuel consumption increasing our
voyage expenses. The significant hurdles faced with crew
changes and repatriation of seafarers has further led to a growing
humanitarian crisis as well as significant concerns for the safety
of seafarers and shipping.
At this stage, we cannot fully assess the
overall impact that the ongoing COVID-19 pandemic will have on our
financial condition and results of operations and on the dry bulk
and tanker industries in general in the long run, as this is highly
dependent on the continuity of the pandemic and extent to which
containment measures will be sufficient to restore or sustain the
business and financial condition of companies in the shipping
industry.
Nasdaq Listing Standards Compliance
Update
On December 30, 2020, we announced that we
received a notification letter from the Nasdaq Stock Market
("Nasdaq") granting us an additional 180-day extension, or until
June 28, 2021, to regain compliance with Nasdaq’s minimum bid price
requirement (the “Second Compliance Period”). We can cure this
deficiency if the closing bid price of our common shares is $1.00
per share or higher for the requisite amount of time during the
Second Compliance Period. Nasdaq may exercise its discretion to
extend such requisite amount of time to better evaluate the
registrant’s ability to sustain long-term compliance with the
minimum bid price requirement. We are evaluating all our options to
regain compliance with the minimum bid price requirement within the
Second Compliance Period, including a reverse stock split. During
this time, our common shares will continue to be listed and traded
on the Nasdaq Capital Market.
2021 Equity Offerings
On December 30, 2020, we entered into agreements
with certain unaffiliated institutional investors pursuant to which
we offered 94,750,000 common shares and warrants to purchase
94,750,000 common shares (the “January 5 Warrants”) in a registered
direct offering which closed on January 5, 2021 (the “January 5
Offering”). In connection with the January 5 Offering, we received
gross proceeds of approximately $18.0 million. All the January 5
Warrants have been exercised, for which we have received total
gross proceeds of approximately $18.0 million.
On January 8, 2021, we entered into agreements
with certain unaffiliated institutional investors pursuant to which
we offered 137,000,000 common shares and warrants to purchase
137,000,000 common shares (the “January 12 Warrants”) in a
registered direct offering which closed on January 12, 2021 (the
“January 12 Offering”). In connection with the January 12 Offering,
we received gross proceeds of approximately $26.0 million. All the
January 12 Warrants have been exercised, for which we have received
total gross proceeds of approximately $26.0 million.
2021 Financing Transaction
On January 22, 2021, we, through two of our
ship-owning subsidiaries, entered into a $15.3 million senior
secured term loan facility with a reputable financial institution,
or the $15.3 Million Term Loan Facility, secured by the M/V Magic
Horizon and the M/V Magic Nova. The $15.3 Million Term Loan
Facility has a tenor of four years from the drawdown date and bears
interest at a margin plus LIBOR. The loan was drawn down in full on
January 27, 2021. We intend to use the net proceeds from the $15.3
Million Term Loan Facility for general corporate purposes including
funding our growth capital expenditures.
2021 Vessel Acquisitions
Since the beginning of this year and up to the
date of this earnings release, we have entered into a series of
vessel acquisition transactions from unaffiliated third-party
sellers. As of the date of this earnings release, we have completed
five of our eight previously announced vessel acquisitions, thereby
increasing the size of our fleet from 6 to 11 vessels, or by 83%,
since December 31, 2020. In connection with the aforementioned
acquisitions, we have paid an approximate aggregate amount of $83.6
million, whereas, we expect to pay a further approximate amount of
$38.5 million which we have funded or expect to fund using the net
proceeds from the January 5 Offering and the January 12 Offering
and our $15.3 Million Term Loan Facility, as further discussed
above. Details and delivery information of our recent vessel
acquisitions are as follows:
- On January 20, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2006
Japanese-built Capesize dry bulk carrier, or the M/V Magic Orion,
for a purchase price of $17.5 million. The M/V Magic Orion was
delivered to us on March 17, 2021.
- On January 28, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2010
Japanese-built Kamsarmax dry bulk carrier, or the M/V Magic Venus,
for a purchase price of $15.85 million. The M/V Magic Venus was
delivered to us on March 2, 2021.
- On February 2, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2009
Japanese-built Kamsarmax dry bulk carrier, or the M/V Magic Argo,
for a purchase price of $14.5 million. The M/V Magic Argo was
delivered to us on March 18, 2021.
- On February 5, 2021, we, through two of our wholly-owned
subsidiaries, entered into agreements to purchase two 2005
Korean-built Aframax LR2 tankers for an aggregate purchase price of
$27.2 million. The M/T Wonder Polaris and the M/T Wonder Sirius
were delivered to us on March 11, 2021 and March 22, 2021,
respectively.
- On February 18, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2010
Japanese-built Kamsarmax dry bulk carrier for a purchase price of
$14.8 million. The acquisition is expected to be consummated by
taking delivery of the vessel sometime in the beginning of the
second quarter of this year.
- On March 9, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2010
Korean-built Kamsarmax dry bulk carrier, for a purchase price of
$15.5 million. The acquisition is expected to be consummated by
taking delivery of the vessel within the second quarter of this
year.
- On March 11, 2021, we, through one of our wholly-owned
subsidiaries, entered into an agreement to purchase a 2011
Japanese-built Kamsarmax dry bulk carrier, for a purchase price of
$16.9 million. The acquisition is expected to be consummated by
taking delivery of the vessel sometime between the second and third
quarter of this year.
Thalassa Loan Agreement
On March 2, 2021, we agreed to extend the
maturity of the Thalassa Investment Co S.A. loan facility
originally dated August 30, 2019 for a period of six (6) months.
Other than the maturity date extension, all other terms of the
Thalassa loan facility remain unchanged.
Update on common shares issued and
outstanding
As of March 26, 2021, we had issued and
outstanding 707,157,936 common shares.
Liquidity / Financing / Cash Flow
Commentary:
As of December 31, 2020, total cash amounted to
$9.4 million, which included $0.5 million of minimum cash liquidity
required under our $11.0 million secured term loan financing
entered into in November 2019. The significant improvement on our
consolidated cash position as of December 31, 2020, by $4.3
million, or 84%, in relation to our cash position of December 31,
2019, was mainly the result of us concluding (i) an underwritten
public offering of common shares and warrants in June 2020 and (ii)
a registered direct offering of common shares with a concurrent
private placement of warrants in July 2020, both of which resulted
in net cash proceeds to us of $34.2 million, as well as our entry
into certain financing arrangements within the first quarter of
2020, as further discussed below. Between June 26, 2020 and
December 31, 2020, there were also subsequent exercises of
3,019,500 warrants from the underwritten public offering of June
2020 which resulted in the issuance of an equivalent number of
common shares and proceeds to the Company of approximately $1.1
million. We used the majority of the net proceeds from our 2020
equity and debt financings, to support our growth strategy by
acquiring and taking delivery within 2020 of three dry bulk
carriers (the M/V Magic Rainbow, the M/V Magic Horizon and the M/V
Magic Nova). Cash outflows in relation to these acquisitions within
2020 approximated the amount of $35.5 million.
Further, between January 1, 2021 and March 25,
2021, there were subsequent exercises pursuant to the June and July
2020 equity offerings of 112,445,560 warrants that resulted in the
issuance of 112,445,560 common shares and proceeds to us of
approximately $39.4 million.
Pursuant to the two registered direct offerings
concluded in January 2021 (as further discussed under 2021 Equity
Offerings above) of an aggregate of 231,750,000 common shares and
an equivalent number of warrants, we raised, during the period from
January 5, 2021 to March 25, 2021, from the issuance and sale of
these shares and the full exercise of the respective warrants,
approximately $88.1 million (the “2021 Equity Offerings”).
As of the date of this press release, we have
used the majority of the net proceeds from our 2021 Equity
Offerings to fund our 2021 vessel acquisitions that led to the
diversification and further growth of our fleet, as further
discussed under 2021 Vessel Acquisitions above. As of the date of
this press release, 2021, we have taken delivery of five of our
previously announced acquisitions. Mostly as a result of the above
discussed capital raising and vessel acquisition transactions, our
consolidated cash position (including restricted cash) as of March
26, 2021 approximated the amount of $66.4 million.
As of December 31, 2020, pursuant to the
entering within the first quarter of 2020 into one commercial
secured credit facility amounting to $4.5 million, our total debt
(including $5.0 million of related party debt whose original
maturity has been extended from March 2021 to September 2021),
gross of unamortized deferred loan fees, was $18.5 million of which
$7.2 million was repayable within one year, as compared to $16.0
million of debt as of December 31, 2019.
During the three months ended December 31, 2020,
net cash used in operating activities was $2.0 million as compared
to $1.3 million of cash provided from operating activities in the
corresponding period of 2019, which represents a decrease of $3.3
million. Net cash used in operating activities in the three-month
period ended December 31, 2020, consisted of net income after
non-cash items of $0.1 million and working capital outflow of $2.1
million, whereas, in the corresponding quarter of 2019, net cash
from operating activities consisted on net income after non-cash
items of $0.9 million and working capital inflow of $0.4 million.
The decrease in net cash used in/from operating activities in the
fourth quarter of 2020 versus the same period of 2019 is therefore
mainly the aggregate result of (i) decreased cash inflows on our
trade receivable accounts, and (ii) increased payments related to
dry-dockings undergone by our vessels during the period. As of
December 31, 2020, we reported a working capital surplus of $2.7
million (December 31, 2019: $3.2 million).
Fleet Employment Update (as of March 29,
2021)
Vessel Name |
Vessel Type |
DWT |
Year Built |
Country of Construction |
Daily Gross Charter Rate |
Estimated Redelivery Date (Earliest/ Latest) |
Magic P |
Panamax dry bulk carrier |
76,453 |
2004 |
Japan |
$12,750 |
August 2021 |
November 2021 |
Magic Sun |
Panamax dry bulk carrier |
75,311 |
2001 |
Korea |
$10,200 |
August 2021 |
October 2021 |
Magic Moon |
Panamax dry bulk carrier |
76,602 |
2005 |
Japan |
$10,500 |
July 2021 |
September 2021 |
Magic Rainbow |
Panamax dry bulk carrier |
73,593 |
2007 |
China |
$18,500 |
April 2021 |
April 2021 |
Magic Horizon |
Panamax dry bulk carrier |
76,619 |
2010 |
Japan |
$11,000 |
August 2021 |
December 2021 |
Magic Nova |
Panamax dry bulk carrier |
78,833 |
2010 |
Japan |
$10,400 |
April 2021 |
August 2021 |
Magic Venus |
Kamsarmax dry bulk carrier |
83,416 |
2010 |
Japan |
$18,500 |
August 2021 |
October 2021 |
Magic Orion |
Capesize dry bulk carrier |
180,200 |
2006 |
Japan |
$21,000 |
April 2021 |
April 2021 |
Magic Argo |
Kamsarmax dry bulk carrier |
82,338 |
2009 |
Japan |
$25,100 |
June 2021 |
June 2021 |
Wonder Polaris |
LR2 Aframax tanker |
115,341 |
2005 |
Korea |
$15,000 + profit sharing |
February 2022 |
February 2023 |
Wonder Sirius |
LR2 Aframax tanker |
115,340 |
2005 |
Korea |
$15,000 + profit sharing |
February 2022 |
February 2023 |
Financial Results Overview:
|
Three Months Ended |
|
Year Ended |
(expressed in U.S. dollars) |
|
December 31, 2020 (unaudited) |
|
December 31, 2019 (unaudited) |
|
|
December 31, 2020 (unaudited) |
|
December 31, 2019 (unaudited) |
Time charter revenues, net |
$ |
4,385,498 |
|
$ |
2,842,149 |
|
$ |
12,487,692 |
|
$ |
5,967,772 |
Net (loss) /
income |
$ |
(768,912 |
) |
$ |
527,348 |
|
$ |
(1,753,533 |
) |
|
1,088,149 |
Operating
(loss) / income |
$ |
(475,406 |
) |
$ |
720,795 |
|
$ |
452,029 |
|
$ |
1,283,263 |
EBITDA(1) |
$ |
276,579 |
|
$ |
1,064,666 |
|
$ |
2,327,671 |
|
$ |
2,175,894 |
(Loss)/earnings per common share (2) |
$ |
(0.01 |
) |
$ |
0.20 |
|
$ |
(0.03 |
) |
$ |
0.31 |
(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 and if
applicable in each period. On October 10, 2019, we reached an
agreement with our Series A preferred shareholders to Amend and
Restate the Statement of Designations of the Series A preferred
shares (the “Agreement”). The Agreement, amongst other amended
terms, prescribes 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 financial and
operational statistical data of our fleet for each of the three
months and year ended December 31, 2020 and 2019 that we believe
are useful in better analysing trends in our results of
operations:
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(expressed in U.S. dollars except for operational
data) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Ownership
days (1) |
|
529 |
|
|
257 |
|
|
1,405 |
|
|
556 |
|
Available
days (2) |
|
434 |
|
|
249 |
|
|
1,219 |
|
|
545 |
|
Daily TCE
rate (3) |
$ |
10,257 |
|
$ |
10,789 |
|
$ |
9,765 |
|
$ |
10,471 |
|
Fleet
Utilization (4) |
|
82 |
% |
|
97 |
% |
|
87 |
% |
|
98 |
% |
Daily vessel
operating expenses (5) |
$ |
5,818 |
|
$ |
5,220 |
|
$ |
5,301 |
|
$ |
5,041 |
|
Daily
company administration expenses (6) |
$ |
1,133 |
|
$ |
651 |
|
$ |
805 |
|
$ |
681 |
|
(1) Ownership days are the total number of calendar days in a
period during which we owned our vessels.(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 rate 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/ (Loss)
(In U.S.
dollars except for number of share data) |
|
Three Months Ended December 31, |
|
Year EndedDecember 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
REVENUES |
|
|
|
|
|
|
|
|
Time charter
revenues, net |
$ |
4,385,498 |
|
$ |
2,842,149 |
|
$ |
12,487,692 |
|
$ |
5,967,772 |
|
EXPENSES |
|
|
|
|
|
|
|
|
Voyage
income/(expenses) -including commissions from related parties |
|
66,178 |
|
|
(155,663 |
) |
|
(584,705 |
) |
|
(261,179 |
) |
Vessel
operating expenses |
|
(3,077,944 |
) |
|
(1,341,518 |
) |
|
(7,447,439 |
) |
|
(2,802,991 |
) |
General and
administrative expenses |
|
|
|
|
|
|
|
|
- Company administration expenses (including related
party) |
|
(599,393 |
) |
|
(167,229 |
) |
|
(1,130,953 |
) |
|
(378,777 |
) |
- Public registration costs |
|
— |
|
|
— |
|
|
— |
|
|
(132,091 |
) |
Management
fees -related parties |
|
(450,500 |
) |
|
(111,940 |
) |
|
(930,500 |
) |
|
(212,300 |
) |
Provision
for doubtful accounts |
|
(37,103 |
) |
|
— |
|
|
(37,103 |
) |
|
— |
|
Depreciation
and amortization |
|
(762,142 |
) |
|
(345,004 |
) |
|
(1,904,963 |
) |
|
(897,171 |
) |
Operating (loss) / income |
$ |
(475,406 |
) |
$ |
720,795 |
|
$ |
452,029 |
|
$ |
1,283,263 |
|
Interest and
finance costs, net (including related party interest costs) |
|
(261,709 |
) |
|
(192,314 |
) |
|
(2,154,601 |
) |
|
(190,574 |
) |
Other
expenses, net |
|
(10,157 |
) |
|
(1,133 |
) |
|
(29,321 |
) |
|
(4,540 |
) |
US source
income taxes |
|
(21,640 |
) |
|
— |
|
|
(21,640 |
) |
|
— |
|
Net (loss)/income |
$ |
(768,912 |
) |
$ |
527,348 |
|
$ |
(1,753,533 |
) |
$ |
1,088,149 |
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per common share (basic and
diluted) |
$ |
(0.01 |
) |
$ |
0.20 |
|
$ |
(0.03 |
) |
$ |
0.31
(1) |
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding, basic and
diluted: |
|
131,212,376 |
|
|
3,265,938 |
|
|
67,735,195 |
|
|
2,662,383 |
|
(1) Loss per common share, basic and diluted,
for the year ended December 31, 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 number of share data)
|
|
December 31, 2020
|
|
December 31, 2019
|
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and
cash equivalents |
$ |
8,926,903 |
$ |
4,558,939 |
Due from
related party |
|
1,559,132 |
|
759,386 |
Other
current assets |
|
3,078,119 |
|
902,572 |
Total current assets |
|
13,564,154 |
|
6,220,897 |
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
Vessels,
net |
|
58,045,628 |
|
23,700,029 |
Other
non-currents assets |
|
2,761,573 |
|
500,000 |
Total non-current assets, net |
|
60,807,201 |
|
24,200,029 |
Total assets |
|
74,371,355 |
|
30,420,926 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
— |
Current
portion of long-term debt, net – including related party |
|
7,102,037 |
|
1,522,895 |
Due to
related party |
|
1,941 |
|
— |
Trade
payables |
|
2,078,695 |
|
410,592 |
Accrued
liabilities |
|
1,613,109 |
|
556,248 |
Deferred
Revenue, net |
|
108,125 |
|
493,015 |
Total current liabilities |
|
10,903,907 |
|
2,982,750 |
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
Long-term
debt, net -including related party |
|
11,083,829 |
|
14,234,165 |
Total non-current liabilities |
|
11,083,829 |
|
14,234,165 |
Total Liabilities |
|
21,987,736 |
|
17,216,915 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Common
shares, $0.001 par value; 1,950,000,000 shares authorized;
131,212,376 and 3,318,112 shares, issued and outstanding as at
December 31, 2020 and 2019, respectively |
|
131,212 |
|
3,318 |
Series A
Preferred Shares- 480,000 shares issued and outstanding as at
December 31, 2020 and 2019 |
|
480 |
|
480 |
Series B
Preferred Shares- 12,000 shares issued and outstanding as at
December 31, 2020 and 2019 |
|
12 |
|
12 |
Additional
paid-in capital |
|
53,568,650 |
|
12,763,403 |
(Accumulated
Deficit)/Retained Earnings |
|
(1,316,735) |
|
436,798 |
Total shareholders’ equity |
|
52,383,619 |
|
13,204,011 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
74,371,355 |
$ |
30,420,926 |
CASH
FLOW DATA |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net cash
(used in)/provided by operating activities |
$ |
(2,032,553 |
) |
$ |
1,290,595 |
|
$ |
(2,343,809 |
) |
$ |
2,311,962 |
|
Net cash
used in investing activities |
|
(25,885,826 |
) |
|
(10,459,411 |
) |
|
(35,472,173 |
) |
|
(17,227,436 |
) |
Net cash
(used in)/provided by financing activities |
$ |
(792,658 |
) |
$ |
10,708,067 |
|
$ |
42,183,946 |
|
$ |
18,087,133 |
|
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 (time charter and/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 Ended December 31, |
|
Year Ended December 31, |
(In U.S. dollars, except for Available days) |
|
2020 |
|
2019 |
|
|
2020 |
|
|
2019 |
|
Time charter
revenues, net |
$ |
4,385,498 |
$ |
2,842,149 |
|
$ |
12,487,692 |
|
$ |
5,967,772 |
|
Voyage
income / (expenses) -including commissions from related
parties |
|
66,178 |
|
(155,663 |
) |
|
(584,705 |
) |
|
(261,179 |
) |
TCE revenues |
$ |
4,451,676 |
$ |
2,686,486 |
|
$ |
11,902,987 |
|
$ |
5,706,593 |
|
Available
days |
|
434 |
|
249 |
|
|
1,219 |
|
|
545 |
|
TCE rate |
$ |
10,257 |
$ |
10,789 |
|
$ |
9,765 |
|
$ |
10,471 |
|
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. EBITDA as
presented below may not be comparable to similarly titled measures
of other companies. The following table reconciles EBITDA to net
(loss)/income, the most directly comparable U.S. GAAP financial
measure, for the periods presented:
Reconciliation of Net (Loss)/Income to
EBITDA
|
|
Three-Months Ended December 31, |
|
Year Ended December 31, |
(In U.S. dollars) |
|
2020 |
|
|
2019 |
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
Net
(Loss) / Income |
$ |
(768,912 |
) |
$ |
527,348 |
$ |
(1,753,533 |
) |
$ |
1,088,149 |
Depreciation
and amortization |
|
762,142 |
|
|
345,004 |
|
1,904,963 |
|
|
897,171 |
Interest and
finance costs, net (including amortization of deferred financing
costs and beneficial conversion feature, as applicable) |
|
261,709 |
|
|
192,314 |
|
2,154,601 |
|
|
190,574 |
US source
income taxes |
|
21,640 |
|
|
— |
|
21,640 |
|
|
— |
EBITDA |
$ |
276,579 |
|
$ |
1,064,666 |
$ |
2,327,671 |
|
$ |
2,175,894 |
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 and tanker
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 and
tanker 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, 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 Panagiotidis Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital Link Email:
castormaritime@capitallink.com
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