Attached as Exhibit 99.2 to this Report on Form 6-K
is a copy of the press release of the Company, dated August 9, 2021, which announces the Company’s financial results for the
three and six months 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 Months ended 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” below
2
“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 Loss
For
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 Loss
For
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 Sheets
As
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, 2020
|
|
|
June 30, 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 Flows
For
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
|
|
|
|
|
|
|
Vessel
|
|
Capacity
|
|
|
Year
|
|
|
Type of
|
|
|
Rate
|
|
|
Redelivery
|
|
|
Vessel Name
|
|
Shipyard
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Charter
rates are gross and do not reflect any commissions payable.
|
|
2)
|
“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
|