Maroussi, Greece, August 9, 2021 – Pyxis Tankers
Inc. (NASDAQ Cap Mkts: PXS) (the “Company” or “Pyxis Tankers”), an
international pure play product tanker company, today announced its
unaudited results for the three and six month periods ended June
30, 2021.
Summary
For the three months ended June 30, 2021, our
Revenues, net were $5.0 million. For the same period, our time
charter equivalent (“TCE”) revenues were $4.1 million, represented
a decrease of approximately $0.4 million or 8.8% over the
comparable period in 2020. Our net loss attributable to common
shareholders for the three months ended June 30, 2021 was $1.5
million, representing an increase of $0.3 million from the
comparable period of 2020. For the second quarter of 2021, the loss
per share (basic and diluted) was $0.04 compared to $0.06 for the
same period in 2020. Our Adjusted EBITDA was $0.4 million, which
represented a decrease of $0.8 million over the comparable period
in 2020. Please see “Non-GAAP Measures and Definitions” below.
Valentios Valentis, our Chairman and CEO
commented:
“The chartering environment for product tankers
in the second quarter of 2021 continued to be depressed, especially
the spot market in the Eastern hemisphere. The period market,
albeit more stable than the spot market, did encounter a decline in
activity during the quarter to levels below the prior 10 year
averages. The employment strategy for our Medium Range
tankers (“MRs”) of shorter-term, staggered time charters has
benefited the Company in a tough market. In the second quarter of
2021, the average TCE for our MR’s was approximately $12,700/day
which unfortunately was about $2,165 per day lower than the same
period in 2020. As of August 4, 2021, we had booked 47% of
available days for the third quarter of 2021 at an average TCE rate
of approximately $10,920 for our MRs.
Greater demand for refined petroleum products,
especially from OECD economies emerging from COVID-19 lockdowns,
have helped reduce global inventories to levels consistent with the
prior 5-year averages. Going forward higher refinery utilization
and increasing transportation activities are positive signs.
However, we have seen a movement of a fair number of long-range
tankers switching from the severely depressed dirty/crude trades
into clean products, thus adding capacity and hurting charter
rates. We expect this migration to be temporary as global oil
demand is forecasted by the IEA to increase by 4.6 million
barrels/day in the second half of 2021 and a further 3 million
barrels in 2022. Also, OPEC+ is scheduled in increase crude
production by 2 Mb/d starting this month. Nevertheless, we expect
the product tanker sector to continue to experience challenging
conditions until later this year with the impact of new variants of
COVID-19 and the path towards effective distribution of
vaccinations creating further uncertainty to the global
recovery.
Overall, we maintain a positive outlook about
the long-term prospects of the product tanker sector. Improving
global GDP growth and expanding personal and commercial mobility
should increase demand for seaborne transportation of a broad range
of petroleum products. The IMF just re-affirmed its global growth
forecast of 6% this year with a higher increase in 2022 to 4.9%. In
the meantime, the supply picture looks better due to the aging
global fleet, continued low ordering of new tankers and a
substantial increase in vessel demolition. For example, a leading
industry source stated that 22 MR2 tankers had been scrapped in
first half of 2021 and with 99 vessels at 20 years of age or more
as of June 30, 2021, the record pace may continue.
During this challenging period, we have
maintained our focus on the efficiencies of our operating platform,
as fleet-wide daily operating expenses were approximately $5,900
per vessel for the first half of 2021. We have continued to
strengthen our balance sheet and enhance our financial position for
upside opportunities. Recent equity offerings and bank loans have
resulted in lower leverage, better liquidity, interest rate
savings, longer debt maturities and capital for selective growth.
In July, we expanded our fleet with the acquisition of a 2013 built
eco-efficient MR which has been named the “Pyxis Karteria”. The
follow-on offering of additional Series A Convertible Preferred
Stock during July 2021 should provide us further flexibility and
capability to enhance shareholder value.”
Results for the three months ended June 30, 2020 and
2021
For the three months ended June 30, 2021, we
reported a net loss of $1.5 million, or $0.04 basic and diluted
loss per share, compared to a net loss of $1.2 million, or $0.06
basic and diluted loss per share, for the comparable period in
2020. The weighted average share count had increased by 15.9
million shares from the second quarter, 2020 to approximately 37.4
million common shares in the second quarter of 2021. The daily TCE
of $10,905 during the second quarter of 2021 was 7.3% lower than
the relevant period in 2020. The decrease was mainly due to lower
revenues, net of $0.5 million during the three months ended June
30, 2021 from $5.5 million in the same period of 2020. The decrease
was mostly attributed to lower charter rates for our MRs and lower
fleet utilization. Vessel operating expenses increased by $0.3
million or 13.4% for the three months ended June 30, 2021 compared
to the second quarter of 2020. However, lower interest and finance
costs of approximately $0.6 million, primarily as a result of the
refinancing of the previous $24 million loan facility secured by
the “Pyxis Epsilon” (the “Eighthone Loan”) with a $17 million loan
at a substantial lower interest rate, mitigated the loss for the
three months ended June 30, 2021. Our Adjusted EBITDA of $0.4
million, represented a decrease of $0.8 million from $1.1 million
for the same period in 2020.
Results for the six months ended June 30, 2020 and
2021
For the six months ended June 30, 2021, we
reported a net loss of $3.6 million, or $0.11 basic and diluted
loss per share, compared to a loss of $2.4 million, with the same
loss per share for the comparable period in 2020. The weighted
average share count had increased by 11.9 million shares to
approximately 33.3 million common shares for the most recent six
month period. Lower daily TCE of $10,885 and lower
utilization of 85.5% during the six-month period ended June 30,
2021 were the primary factors that contributed to an operating loss
of $1.2 million during the first half of 2021. For the comparable
period in 2020, the daily TCE was $11,844 and utilization was
89.3%, respectively, with operating income of $0.1 million. In
2021, lower revenues, net of $1.9 million or 15.6%, compared to
2020 were partially offset by a decrease of $0.8 million in voyage
related costs and commissions and an aggregate decrease of
approximately $0.8 million in management fees and interest and
finance costs, net. These differences were counterbalanced by
increased vessel operating expenses, general and administrative
expenses and amortization of special survey costs aggregating $0.3
million. These additional costs, along with the recognition of a
$0.5 million loss from debt extinguishment associated with the
Eighthone Loan refinancing and dividend payments of approximately
$0.2 million for the Series A Convertible Preferred Stock, resulted
in a $1.2 million increased net loss for the six months ended June
30, 2021.
Our Adjusted EBITDA of $1.2 million represented
a decrease of $1.2 million from $2.4 million for the same six month
period in 2020.
|
Three Months ended June 30, |
|
Six
Monthsended June 30, |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
(Thousands of U.S. dollars, except for daily TCE rates) |
Revenues, net |
5,489 |
|
4,986 |
|
12,124 |
|
10,228 |
Voyage related costs and
commissions |
(947) |
|
(843) |
|
(2,629) |
|
(1,804) |
Time charter equivalent revenues 1 |
4,542 |
|
4,143 |
|
9,495 |
|
8,424 |
|
|
|
|
|
|
|
|
Total operating days 2 |
386 |
|
380 |
|
802 |
|
774 |
|
|
|
|
|
|
|
|
Daily time charter equivalent rate 1,
2 |
11,766 |
|
10,905 |
|
11,844 |
|
10,885 |
1 Subject to rounding; please see “Non-GAAP
Measures and Definitions” below2 “Pyxis Delta” was sold on January
13, 2020, and has been excluded from the calculation for the six
months ended June 30, 2020 (the vessel had been under TC employment
for approximately 2 days in January 2020 when it was redelivered
from charterers in order to be sold).
Management’s Discussion and Analysis of
Financial Results for the Three Months ended June 30, 2020 and
2021 (Amounts are presented in million U.S. dollars,
rounded to the nearest one hundred thousand, except as otherwise
noted)
Revenues, net: Revenues, net of $5.0 million for
the three months ended June 30, 2021, represented a decrease of
$0.5 million, or 9.2%, from $5.5 million in the comparable period
in 2020, substantially a result of lower charter rates for our MRs
and decrease in utilization level in the second quarter of
2021.
Voyage related costs and commissions: Voyage
related costs and commissions of $0.8 million for the three months
ended June 30, 2021 decreased by $0.1 million over the comparable
period in 2020 as a result of slightly lower spot charter activity.
Under spot charters, all voyage expenses are typically borne by us
rather than the charterer and a decrease in spot chartering results
in a decrease in voyage related costs and commissions.
Vessel operating expenses: Vessel operating
expenses of $2.8 million for the three months ended June 30, 2021,
represented an increase of $0.3 million, or 13.4%, from $2.5
million in the comparable period in 2020. This increase was due
primarily to timing differences of certain vessel costs.
General and administrative expenses: General and
administrative expenses of $0.6 million for the three months ended
June 30, 2021, remained relatively stable from the comparable
period in 2020.
Management fees: For the three months ended June
30, 2021, management fees paid to our ship manager, Pyxis Maritime
Corp. (“Maritime”), an entity affiliated with our Chairman and
Chief Executive Officer, Mr. Valentis, and to
International Tanker Management Ltd. (“ITM”), our fleet’s technical
manager, in the aggregate of $0.3 million remained flat as compared
to the 2020 period.
Amortization of special survey costs:
Amortization of special survey costs of $0.1 million for the three
months ended June 30, 2021, represented an increase of less than
$0.1 million over the same period in 2020. This increase was
primarily due to three vessel drydockings that were completed in
the second half of 2020.
Depreciation: Depreciation of $1.1 million for
the three months ended June 30, 2021, remained flat compared to the
same period in 2020.
Interest and finance costs, net: Interest and
finance costs, net, of $0.6 million for the three months ended June
30, 2021, represented a decrease of $0.6 million, or 49.2%, from
$1.2 million in the comparable period in 2020. This decrease was
primarily attributable to the refinancing of the Eighthone Loan,
which has helped to reduce our overall debt outstanding and average
interest rate, as well as lower LIBOR rates paid on floating rate
bank debt compared to the same period in 2020.
Management’s Discussion and Analysis of
Financial Results for the Six Months ended June 30, 2020 and
2021 (Amounts are presented in million U.S. dollars,
rounded to the nearest one hundred thousand, except as otherwise
noted)
Revenues, net: Revenues, net of $10.2 million
for the six months ended June 30, 2021, represented a decrease of
$1.9 million, or 15.6%, from $12.1 million in the comparable period
in 2020. The decrease in revenues, net during the six-month period
ended June 30, 2021 was mostly attributed to the lower charter
rates for our MRs compared to the first half of 2020 and lower
fleet utilization.
Voyage related costs and commissions: Voyage
related costs and commissions of $1.8 million for the six months
ended June 30, 2021, represented a decrease of $0.8 million, or
31.4%, from $2.6 million in the comparable period in 2020. For the
six months ended June 30, 2021, our MRs were on spot charters for 4
days in total, compared to 29 days for the respective period in
2020. This lower spot chartering activity for our MRs contribute
primarily to the less voyage costs as under spot charters, all
voyage expenses are typically borne by us rather than the
charterer. Furthermore, the decrease in revenues, net during the
six-months ended June 30, 2021, resulted in reduced charter
commissions compared to the same period in 2020, contributing
further to the decrease in voyage related costs and commissions.
Vessel operating expenses: Vessel operating expenses of $5.3
million for the six months ended June 30, 2021, represented a
slight $0.1 million increase compared to the six months ended June
30, 2020.
General and administrative expenses: General and
administrative expenses of $1.2 million for the six months ended
June 30, 2021, represented a slight increase of $0.1 million, or
10.2%, from the comparable period in 2020, due to timing of certain
incurred costs.
Management fees: For the six months ended June
30, 2021, management fees payable to Maritime and ITM of $0.7
million in the aggregate, represented a decrease of less than $0.1
million compared to the six months ended June 30, 2020, as a result
of the sale of Pyxis Delta that was completed in January 2020.
Amortization of special survey costs:
Amortization of special survey costs of $0.2 million for the six
months ended June 30, 2021, represented an increase of $0.1
million, compared to the same period in 2020 due to three vessel
drydockings that were completed in the second half of 2020.
Depreciation: Depreciation of $2.2 million for
the six months ended June 30, 2021, remained flat compared to the
same period in 2020.
Interest and finance costs, net: Interest and
finance costs, net, of $1.8 million for the six months ended June
30, 2021, represented a decrease of $0.8 million, or 30.4%, from
$2.5 million in the comparable period in 2020. The decrease was
primarily attributable to the refinancing of the Eighthone Loan,
which reduced our overall debt outstanding and average interest
rate, as well as lower LIBOR rates paid on floating rate bank debt
compared to the same period in 2020. This reduction to interest and
finance costs is partially off-set from the loss from debt
extinguishment of $0.5 million which primarily reflected a
prepayment fee and the write-off of remaining unamortized balance
of deferred financing costs, both of which were associated with the
aforementioned loan refinancing.
Unaudited Interim Consolidated
Statements of Comprehensive LossFor the three months ended
June 30, 2020 and 2021(Expressed in thousands of U.S. dollars,
except for share and per share data)
|
|
|
Three months ended |
|
|
|
June 30, 2020 |
|
June 30, 2021 |
|
|
|
|
|
|
Revenues,
net |
|
|
$
5,489 |
|
$
4,986 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage related
costs and commissions |
|
|
(947) |
|
(843) |
Vessel operating
expenses |
|
|
(2,500) |
|
(2,834) |
General and
administrative expenses |
|
|
(549) |
|
(584) |
Management fees,
related parties |
|
|
(151) |
|
(151) |
Management fees,
other |
|
|
(194) |
|
(193) |
Amortization of
special survey costs |
|
|
(48) |
|
(102) |
Depreciation |
|
|
(1,094) |
|
(1,103) |
Allowance for
credit losses |
|
|
— |
|
(9) |
Operating
income / (loss) |
|
|
6 |
|
(833) |
|
|
|
|
|
|
Other
income / (expenses): |
|
|
|
|
|
Loss from
financial derivative instrument |
|
|
(1) |
|
— |
Interest and
finance costs, net |
|
|
(1,198) |
|
(609) |
Total
other expenses, net |
|
|
(1,199) |
|
(609) |
|
|
|
|
|
|
Net
loss |
|
|
$
(1,193) |
|
$
(1,442) |
|
|
|
|
|
|
Dividends Series A
Convertible Preferred Stock |
|
|
— |
|
(68) |
|
|
|
|
|
|
Net loss
attributable to common shareholders |
|
|
$
(1,193) |
|
$
(1,510) |
|
|
|
|
|
|
Loss per common
share, basic and diluted |
|
|
$
(0.06) |
|
$
(0.04) |
|
|
|
|
|
|
Weighted average
number of common shares, basic and diluted |
|
|
21,490,666 |
|
37,393,648 |
Unaudited Interim Consolidated Statements of
Comprehensive LossFor the six months ended June 30, 2020
and 2021(Expressed in thousands of U.S. dollars, except for share
and per share data)
|
|
|
Six months ended |
|
|
|
June 30, 2020 |
|
June 30, 2021 |
|
|
|
|
|
|
Revenues,
net |
|
|
$
12,124 |
|
$
10,228 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage related costs and
commissions |
|
|
(2,629) |
|
(1,804) |
Vessel operating expenses |
|
|
(5,228) |
|
(5,342) |
General and administrative
expenses |
|
|
(1,113) |
|
(1,226) |
Management fees, related
parties |
|
|
(332) |
|
(300) |
Management fees, other |
|
|
(432) |
|
(387) |
Amortization of special survey
costs |
|
|
(97) |
|
(203) |
Depreciation |
|
|
(2,189) |
|
(2,194) |
Allowance for credit
losses |
|
|
— |
|
(9) |
Gain from the sale of vessel,
net |
|
|
7 |
|
— |
Operating income /
(loss) |
|
|
111 |
|
(1,237) |
|
|
|
|
|
|
Other income /
(expenses): |
|
|
|
|
|
Loss from debt
extinguishment |
|
|
— |
|
(458) |
Gain from financial derivative
instrument |
|
|
2 |
|
— |
Interest and finance costs,
net |
|
|
(2,516) |
|
(1,750) |
Total other expenses,
net |
|
|
(2,514) |
|
(2,208) |
|
|
|
|
|
|
Net loss |
|
|
$
(2,403) |
|
$
(3,445) |
|
|
|
|
|
|
Dividends Series A Convertible
Preferred Stock |
|
|
— |
|
(153) |
|
|
|
|
|
|
Net loss attributable
to common shareholders |
|
|
$
(2,403) |
|
$
(3,598) |
|
|
|
|
|
|
Loss per common share, basic
and diluted |
|
|
$
(0.11) |
|
$
(0.11) |
|
|
|
|
|
|
Weighted average number of
common shares, basic and diluted |
|
|
21,455,291 |
|
33,328,132 |
Consolidated Balance SheetsAs of December 31,
2020 and June 30, 2021 (unaudited)(Expressed in thousands of U.S.
dollars, except for share and per share data)
|
|
|
December 31, |
|
June 30, |
|
|
|
2020 |
|
2021 (unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
|
$
1,620 |
|
$
10,199 |
Inventories |
|
|
681 |
|
1,488 |
Trade accounts receivable |
|
|
672 |
|
512 |
Less: Allowance for credit losses |
|
|
(9) |
|
(9) |
Trade accounts receivable,
net |
|
|
663 |
|
503 |
Due from related parties |
|
|
2,308 |
|
598 |
Prepayments and other current
assets |
|
|
133 |
|
172 |
Total current
assets |
|
|
5,405 |
|
12,960 |
|
|
|
|
|
|
FIXED ASSETS,
NET: |
|
|
|
|
|
Vessels, net |
|
|
83,774 |
|
81,580 |
Prepayments for vessel
acquisition |
|
|
— |
|
3,008 |
Total fixed assets,
net |
|
|
83,774 |
|
84,588 |
|
|
|
|
|
|
OTHER NON-CURRENT
ASSETS: |
|
|
|
|
|
Restricted cash |
|
|
2,417 |
|
2,450 |
Deferred charges, net |
|
|
1,594 |
|
1,391 |
Total other
non-current assets |
|
|
4,011 |
|
3,841 |
Total
assets |
|
|
$
93,190 |
|
$
101,389 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current portion of long-term
debt, net of deferred financing costs |
|
|
$
3,255 |
|
$
4,488 |
Trade accounts payable |
|
|
3,642 |
|
2,252 |
Hire collected in advance |
|
|
726 |
|
— |
Accrued and other
liabilities |
|
|
677 |
|
950 |
Total current
liabilities |
|
|
8,300 |
|
7,690 |
|
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
Long-term debt, net of current
portion and deferred financing costs |
|
|
50,331 |
|
40,279 |
Promissory note |
|
|
5,000 |
|
3,000 |
Total non-current
liabilities |
|
|
55,331 |
|
43,279 |
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
— |
|
— |
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
Preferred stock ($0.001 par
value; 50,000,000 shares authorized: of which 1,000,000 authorized
Series A Convertible Preferred Shares; 181,475 and 141,186 Series A
Convertible Preferred Shares issued and outstanding as at December
31, 2020 and June 30, 2021) |
|
|
— |
|
— |
Common stock ($0.001 par
value; 450,000,000 shares authorized: 21,962,881 and 38,316,854
shares issued and outstanding as at December 31, 2020 and
June 30, 2021, respectively) |
|
|
22 |
|
38 |
Additional paid-in
capital |
|
|
79,692 |
|
104,133 |
Accumulated deficit |
|
|
(50,155) |
|
(53,751) |
Total stockholders'
equity |
|
|
29,559 |
|
50,420 |
Total liabilities and
stockholders' equity |
|
|
$
93,190 |
|
$
101,389 |
Unaudited Consolidated Statements of Cash
FlowsFor the six months ended June 30, 2020 and
2021(Expressed in thousands of U.S. dollars)
|
|
|
Six months ended |
|
|
|
June 30, 2020 |
|
June 30, 2021 |
Cash
flows from operating activities: |
|
|
|
|
|
Net loss |
|
|
(2,403) |
|
(3,445) |
Adjustments to reconcile net loss to net cash provided by
operating activities: |
|
|
|
|
Depreciation |
|
|
2,189 |
|
2,194 |
Amortization
of special survey costs. |
|
|
97 |
|
203 |
Allowance for
credit losses |
|
|
— |
|
9 |
Amortization
of financing costs |
|
|
153 |
|
111 |
Loss from debt
extinguishment |
|
|
— |
|
458 |
Gain from
financial derivative instrument |
|
|
(2) |
|
— |
Gain on sale
of vessel, net |
|
|
(7) |
|
— |
Issuance of
common stock under the promissory note |
|
|
56 |
|
55 |
Changes in assets and liabilities: |
|
|
|
|
|
Inventories |
|
|
(1) |
|
(807) |
Trade accounts
receivable, net |
|
|
780 |
|
151 |
Due from
related parties |
|
|
(5,563) |
|
1,710 |
Prepayments
and other assets |
|
|
96 |
|
(39) |
Special survey
cost |
|
|
(155) |
|
— |
Trade accounts
payable |
|
|
(1,088) |
|
(1,322) |
Hire collected
in advance |
|
|
(1,388) |
|
(726) |
Accrued and
other liabilities |
|
|
120 |
|
322 |
Net
cash used in operating activities |
|
|
(7,116) |
|
(1,126) |
|
|
|
|
|
|
Cash
flow from investing activities: |
|
|
|
|
|
Proceeds from
the sale of vessel, net |
|
|
13,197 |
|
— |
Ballast water
treatment system installation |
|
|
(56) |
|
(153) |
Prepayments
for vessel acquisition |
|
|
— |
|
(3,008) |
Net
cash provided by / (used in) investing activities |
|
|
13,141 |
|
(3,161) |
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
Proceeds from
long-term debt |
|
|
— |
|
17,000 |
Repayment of
long-term debt |
|
|
(7,256) |
|
(25,990) |
Gross proceeds
from issuance of common stock |
|
|
— |
|
25,000 |
Common stock
offering costs |
|
|
(34) |
|
(1,774) |
Proceeds from
conversion of warrants into common shares |
|
|
— |
|
202 |
Repayment of
promissory note |
|
|
— |
|
(1,000) |
Payment of
financing costs |
|
|
— |
|
(388) |
Preferred
stock dividends paid |
|
|
— |
|
(151) |
Net
cash provided by / (used in) financing activities |
|
|
(7,290) |
|
12,899 |
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents and restricted
cash |
|
|
(1,265) |
|
8,612 |
Cash and cash
equivalents and restricted cash at the beginning of the period |
|
|
5,176 |
|
4,037 |
Cash
and cash equivalents and restricted cash at the end of the
period |
|
|
$
3,911 |
|
$
12,649 |
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION: |
|
|
|
|
|
Cash paid for
interest |
|
|
2,198 |
|
1,781 |
Non-cash
financing activities-issuance of common stock under the promissory
note |
|
|
112 |
|
1,112 |
Unpaid portion
of common stock offering costs and financing costs |
|
|
— |
|
131 |
Liquidity, Debt and Capital Structure
Pursuant to our loan agreements, as of June 30,
2021, we were required to maintain minimum liquidity of $2.45
million. Total cash and cash equivalents, including restricted
cash, aggregated to $12.6 million as of June 30, 2021.
Total funded debt (in thousands of U.S.
dollars), net of deferred financing costs:
|
|
As of December |
|
As of June |
|
|
31, 2020 |
|
30, 2021 |
Funded debt, net
of deferred financing costs |
$ |
53,586 |
$ |
44,767 |
Promissory Note -
related party |
|
5,000 |
|
3,000 |
Total
funded debt |
$ |
58,586 |
$ |
47,767 |
Our weighted average interest rates on our total
funded debt for the three and six month periods ended June 30, 2021
were 4.6% and 5.9%, respectively.
Upon repayment of the previous loan facility of
the Pyxis Epsilon, the maturity date for the Amended & Restated
Promissory Note became March 30, 2022. Given the Company improved
cash position, on June 17, 2021, the existing Amended and
Restated Promissory Note was amended on the following basis: a)
repayment of $1 million in principal plus accrued interest, b)
conversion of $1 million of principal into 1,091,062 restricted
common shares of the Company computed on the volume weighted
average closing share price for the 10 day period commencing one
day after its public distribution of first quarter, 2021, financial
results press release (i.e. the period from June 3 to June 16, 2021
at $0.9165) and c) remaining balance of $3 million in
principal will be due on April 1, 2023, and interest shall accrue
at an annual rate of 7.5%, payable quarterly in cash.
On July 15, 2021, we took delivery of the Pyxis
Karteria, a medium range product tanker of 46,652 dwt built in 2013
at Hyundai Mipo shipyard in South Korea. The purchase was funded by
a combination of cash and a $13.5 million bank loan that is secured
by the vessel and amortizes over seven years.
On July 16, 2021, we announced the closing of
underwritten follow-on public offering (the “Offering”) of 308,487
shares of 7.75% Series A Cumulative Convertible Preferred Shares
(the “Preferred Shares” and each a “Preferred Share”) which trade
on the Nasdaq Capital Market under the symbol “PXSAP,” at a
purchase price of $20.00 per Preferred Share. The Company received
gross proceeds of approximately $6.17 million from the Offering,
prior to deducting underwriting discounts and estimated offering
expenses. The Company intends to use the net proceeds from the
Offering of $5.56 million for general corporate purposes, including
working capital and potential vessel acquisitions. Each Preferred
Share is convertible into the Company’s common shares at a
conversion price of $1.40 per common share, or 17.86 common shares,
at any time at the option of the holder, subject to certain
customary adjustments. If the trading price of Pyxis Tankers’
common stock equals or exceeds $2.38 per share for at least 20 days
in any 30 consecutive trading day period ending 5 days prior to
notice, the Company can call for mandatory conversion of the
Preferred Shares. Dividends on the Preferred Stock shall be
cumulative and paid monthly in arrears starting August 20, 2021, to
the extent declared by the board of directors of the Company.
The Preferred Shares will not be redeemable until after October 13,
2023, except upon change of control.
Monthly Series A Preferred Stock Dividend:
During the months of January through July 2021, we paid cash
dividends of $0.1615 per Series A Preferred Share, which aggregated
$0.15 million for the six month period ended June 30, 2021.
Update on Shares Issued and Outstanding: As of
August 4, 2021, we had 38,316,854 issued and outstanding common
shares, 449,673 Series A Preferred Shares and 1,590,540 warrants,
with exercise prices of $1.40 per common share (exclusive of
non-tradeable underwriter’s 444,571 common stock purchase warrants,
which have a weighted average exercise price of $2.16 per common
share, and 4,683 Series A Preferred Stock purchase warrants, which
have a weighted average exercise price of $24.97 per Series A
Preferred share). As of that date, Mr. Valentis beneficially owned
18,688,919 or approximately 48.8% of our outstanding shares.
Non-GAAP Measures and Definitions
Earnings before interest, taxes, depreciation
and amortization (“EBITDA”) represents the sum of net income /
(loss), interest and finance costs, depreciation and amortization
and, if any, income taxes during a period. Adjusted EBITDA
represents EBITDA before certain non-operating or non-recurring
charges, such as vessel impairment charges, gain from debt
extinguishment and stock compensation. EBITDA and Adjusted EBITDA
are not recognized measurements under U.S. GAAP.
EBITDA and Adjusted EBITDA are presented in this
press release as we believe that they provide investors with means
of evaluating and understanding how our management evaluates
operating performance. These non-GAAP measures have limitations as
analytical tools, and should not be considered in isolation from,
as a substitute for, or superior to financial measures prepared in
accordance with U.S. GAAP. EBITDA and Adjusted EBITDA do not
reflect:
- our cash expenditures, or future requirements for capital
expenditures or contractual commitments;
- changes in, or cash requirements for, our working capital
needs; and
- cash requirements necessary to service interest and
principal payments on our funded debt.
In addition, these non-GAAP measures do not have
standardized meanings and are therefore unlikely to be comparable
to similar measures presented by other companies. The following
table reconciles net loss, as reflected in the Unaudited
Consolidated Statements of Comprehensive Loss to EBITDA and
Adjusted EBITDA:
|
|
Three Months Ended |
|
Six Months Ended |
(In
thousands of U.S. dollars) |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
Reconciliation of Net loss to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(1,193) |
$ |
(1,442) |
$ |
(2,403) |
$ |
(3,445) |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,094 |
|
1,103 |
|
2,189 |
|
2,194 |
|
|
|
|
|
|
|
|
|
|
|
Amortization of special survey costs |
|
48 |
|
102 |
|
97 |
|
203 |
|
|
|
|
|
|
|
|
|
|
|
Interest
and finance costs, net |
|
1,198 |
|
609 |
|
2,516 |
|
1,750 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
1,147 |
$ |
372 |
$ |
2,399 |
$ |
702 |
|
|
|
|
|
|
|
|
|
|
|
Loss from
debt extinguishment |
|
— |
|
— |
|
— |
|
458 |
|
|
|
|
|
|
|
|
|
|
|
Loss /
(Gain) from financial derivative instrument |
|
1 |
|
— |
|
(2) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Gain from
the sale of vessel, net |
|
— |
|
— |
|
(7) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
1,148 |
$ |
372 |
$ |
2,390 |
$ |
1,160 |
|
|
|
|
|
|
|
|
|
|
|
|
Daily TCE is a shipping industry performance
measure of the average daily revenue performance of a vessel on a
per voyage basis. Daily TCE is not calculated in accordance with
U.S. GAAP. We utilize daily TCE because we believe it is a
meaningful measure to compare period-to-period changes in our
performance despite changes in the mix of charter types (i.e. spot
charters, time charters and bareboat charters) under which our
vessels may be employed between the periods. Our management also
utilizes daily TCE to assist them in making decisions regarding
employment of the vessels. We calculate daily TCE by dividing
Revenues, net after deducting Voyage related costs and commissions,
by operating days for the relevant period. Voyage related costs and
commissions primarily consist of brokerage commissions, port, canal
and fuel costs that are unique to a particular voyage, which would
otherwise be paid by the charterer under a time charter
contract.
Vessel operating expenses (“Opex”) per day are
our vessel operating expenses for a vessel, which primarily consist
of crew wages and related costs, insurance, lube oils,
communications, spares and consumables, tonnage taxes as well as
repairs and maintenance, divided by the ownership days in the
applicable period.
We calculate utilization (“Utilization”) by
dividing the number of operating days during a period by the number
of available days during the same period. We use fleet utilization
to measure our efficiency in finding suitable employment for our
vessels and minimizing the amount of days that our vessels are
off-hire for reasons other than scheduled repairs or repairs under
guarantee, vessel upgrades, special surveys and intermediate
dry-dockings or vessel positioning. Ownership days are the total
number of days in a period during which we owned each of the
vessels in our fleet. Available days are the number of ownership
days in a period, less the aggregate number of days that our
vessels were off-hire due to scheduled repairs or repairs under
guarantee, vessel upgrades or special surveys and intermediate
dry-dockings and the aggregate number of days that we spent
positioning our vessels during the respective period for such
repairs, upgrades and surveys. Operating days are the number of
available days in a period, less the aggregate number of days that
our vessels were off-hire or out of service due to any reason,
including technical breakdowns and unforeseen circumstances.
EBITDA, Adjusted EBITDA and daily TCE are not
recognized measures under U.S. GAAP and should not be regarded as
substitutes for Revenues, net and Net income. Our presentation of
EBITDA, Adjusted EBITDA and daily TCE does not imply, and should
not be construed as an inference, that our future results will be
unaffected by unusual or non-recurring items and should not be
considered in isolation or as a substitute for a measure of
performance prepared in accordance with U.S. GAAP.
Recent Daily Fleet Data: |
|
|
|
|
|
|
|
|
(Amounts in U.S.$) |
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, 2020* |
|
June 30, 2021 |
|
June 30, 2020* |
|
June 30, 2021 |
Eco-Efficient MR2: (2 of our vessels) |
|
|
|
|
|
|
|
|
|
TCE |
|
14,410 |
|
13,280 |
|
15,060 |
|
13,481 |
|
Opex |
|
6,017 |
|
6,697 |
|
5,966 |
|
6,511 |
|
Utilization
% |
|
98.8% |
|
97.8% |
|
98.0% |
|
98.9% |
Eco-Modified MR2: (1 of our
vessels) |
|
|
|
|
|
|
|
|
|
TCE |
|
15,697 |
|
11,555 |
|
15,286 |
|
11,207 |
|
Opex |
|
5,493 |
|
6,604 |
|
6,078 |
|
6,632 |
|
Utilization
% |
|
100.0% |
|
100.0% |
|
100.0% |
|
100.0% |
Small Tankers: (2 of our vessels) |
|
|
|
|
|
|
|
|
|
TCE |
|
5,451 |
|
6,564 |
|
5,533 |
|
6,681 |
|
Opex |
|
4,946 |
|
5,557 |
|
4,954 |
|
4,917 |
|
Utilization
% |
|
69.8% |
|
61.0% |
|
75.5% |
|
64.9% |
Fleet: (5 vessels) * |
|
|
|
|
|
|
|
|
|
TCE |
|
11,766 |
|
10,905 |
|
11,844 |
|
10,885 |
|
Opex |
|
5,484 |
|
6,222 |
|
5,584 |
|
5,903 |
|
Utilization
% |
|
87.1% |
|
83.5% |
|
89.3% |
|
85.5% |
* “Pyxis Delta”, a standard MR, was sold on
January 13, 2020, and has been excluded from the calculations for
the three and six months ended June 30, 2020 (the vessel had been
under TC employment for approximately 2 days in January when it was
re-delivered from charterers in order to be sold).
Conference Call and Webcast
We will host a conference call to discuss our
results at 8:30 a.m., Eastern Time, on Monday, August 9, 2021.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 1
(877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll
Free Dial In) or +44 (0) 2071 928592 (Standard International Dial
In). Please quote "Pyxis Tankers".
A telephonic replay of the conference and
accompanying slides will be available following the completion of
the call and will remain available until Monday, August 16, 2021.
To listen to the archived audio file, visit our website
http://www.pyxistankers.com and click on Events& Presentations
under our Investor Relations page.
A live webcast of the conference call will be
available through our website (http://www.pyxistankers.com) under
our Events & Presentations page.
Webcast participants of the live conference call
should register on the website approximately 10 minutes prior to
the start of the webcast and can also access it through the
following link:
https://event.on24.com/wcc/r/3338967/AB5D981D9F585292A2B6B90A1ABE8551
An archived version of the webcast will be
available on the website within approximately two hours of the
completion of the call.
The information discussed on the conference
call, or that can be accessed through, Pyxis Tankers Inc.’s website
is not incorporated into, and does not constitute part of this
report.
About Pyxis Tankers Inc.
We own a modern fleet of six tankers, including
the recent delivery of the Pyxis Karteria, engaged in seaborne
transportation of refined petroleum products and other bulk
liquids. We are focused on growing our fleet of medium range
product tankers, which provide operational flexibility and enhanced
earnings potential due to their “eco” features and modifications.
Pyxis Tankers is positioned to opportunistically expand and
maximize the value of its fleet due to competitive cost structure,
strong customer relationships and an experienced management team,
whose interests are aligned with those of its shareholders. For
more information, visit: http://www.pyxistankers.com. The
information discussed contained in, or that can be accessed
through, Pyxis Tankers Inc.’s website, is not incorporated into,
and does not constitute part of this report.
Pyxis Tankers Fleet (as of August 4, 2021)
|
|
|
Carrying |
|
|
Charter |
Earliest |
|
|
|
Capacity |
Year |
Type of |
Rate |
Redelivery |
Vessel Name |
Shipyard |
Vessel Type |
(dwt) |
Built |
Charter |
per day (1) |
Date |
Pyxis Epsilon |
SPP / S. Korea |
MR |
50,295 |
2015 |
Spot |
n/a |
n/a |
Pyxis Theta 2 |
SPP / S. Korea |
MR |
51,795 |
2013 |
Time |
$13,250 |
December 2021 |
Pyxis Malou |
SPP / S. Korea |
MR |
50,667 |
2009 |
Spot |
n/a |
n/a |
Pyxis Karteria |
Hyundai Mipo/ S. Korea |
MR |
46,652 |
2013 |
Time |
$10,800 |
August 2021 |
Northsea Alpha |
Kejin / China |
Small Tanker |
8,615 |
2010 |
Spot |
n/a |
n/a |
Northsea Beta |
Kejin / China |
Small Tanker |
8,647 |
2010 |
Spot |
n/a |
n/a |
|
|
|
216,671 |
|
|
|
|
- Charter rates are gross and do not reflect any commissions
payable.
- “Pyxis Theta” is contracted with a charterer’s option to extend
the charter at $15,000 per day for an additional six months,
plus/minus 15 days
Forward Looking Statements
This press release contains forward-looking
statements and forward-looking information within the meaning of
the Private Securities Litigation Reform Act of 1995 applicable
securities laws. The words “expected'', “estimated”, “scheduled”,
“could”, “should”, “anticipated”, “long-term”, “opportunities”,
“potential”, “continue”, “likely”, “may”, “will”, “positioned”,
“possible”, “believe”, “expand” and variations of these terms and
similar expressions, or the negative of these terms or similar
expressions, are intended to identify forward-looking information
or statements. But the absence of such words does not mean that a
statement is not forward-looking. All statements that are not
statements of either historical or current facts, including among
other things, our expected financial performance, expectations or
objectives regarding future and market charter rate expectations
and, in particular, the effects of COVID-19 on our financial
condition and operations and the product tanker industry in
general, are forward-looking statements. Forward-looking
information is based on the opinions, expectations and estimates of
management of Pyxis Tankers Inc. (“we”, “our” or “Pyxis”) at the
date the information is made, and is based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking information.
Although we believe that the expectations and assumptions on which
such forward-looking statements and information are based are
reasonable, those are not guarantees of our future performance and
you should not place undue reliance on the forward-looking
statements and information because we cannot give any assurance
that they will prove to be correct. Since forward-looking
statements and information address future events and conditions, by
their very nature they involve inherent risks and uncertainties and
actual results and future events could differ materially from those
anticipated or implied in such information. Factors that might
cause or contribute to such discrepancy include, but are not
limited to, the risk factors described in our Annual Report on Form
20-F for the year ended December 31, 2020 and our other filings
with the Securities and Exchange Commission (the “SEC”). The
forward-looking statements and information contained in this
presentation are made as of the date hereof. We do not undertake
any obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, except in accordance with U.S. federal
securities laws and other applicable securities laws.
Company
Pyxis Tankers Inc.59 K. Karamanli StreetMaroussi 15125
Greeceinfo@pyxistankers.com
Visit our website at www.pyxistankers.com
Company Contact
Henry WilliamsChief Financial OfficerTel: +30 (210) 638 0200 /
+1 (516) 455-0106Email: hwilliams@pyxistankers.com
Source: Pyxis Tankers Inc.
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