Maroussi, Greece, November 15, 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 nine month
periods ended September 30, 2021.
Summary
For the three months ended September 30, 2021,
our Revenues, net were $7.0 million. For the same period, our time
charter equivalent (“TCE”) revenues were $3.4 million, represented
a decrease of approximately $0.9 million or 21.3% over the
comparable period in 2020. Our net loss attributable to common
shareholders for the three months ended September 30, 2021 was $3.7
million, represented an increase of $1.8 million from the prior
period. For the third quarter of 2021, the loss per share (basic
and diluted) was $0.10 compared with a loss per share of $0.09 for
the same period in 2020. Our negative adjusted EBITDA for the three
months ended September 30, 2021 was $1.3 million, represented a
decrease of $1.9 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 third quarter of 2021 continued to be depressed, primarily
due to a poor spot market. The period market, albeit more stable
than the spot market, also encountered a further decline in
activity. In the third quarter of 2021, the average TCE for our
medium range tankers (“MRs”) was $7,326 which was dramatically
lower than the TCE achieved the same period in 2020. Market
conditions have since improved, and as of November 12, 2021, we had
booked 49% of available days for the fourth quarter of 2021 at an
average TCE rate of approximately $ 10,900 for our MRs. One bright
spot for us during the third quarter of 2021 was the improved
performance of our smaller tankers which achieved higher
utilization and lower operating expenses.
Greater demand for refined petroleum products,
especially from Organization for Economic Co-operation and
Development (“OECD”) economies recovering from COVID-19, have
helped reduce global inventories to levels at or below 5-year
averages. According to the IEA, in September oil inventories within
the OECD fell to their lowest level since 2015. Overall, global oil
demand is forecasted to increase by 5.5 million barrels/day in 2021
and a further 3.3 million barrels in 2022 to 99.6 mb/d, slightly
above pre-COVID-19 levels. Additionally, refined products tanker
ton-mile demand could be bolstered by geographic dislocations
taking place in the global refinery industry as new capacity is
being added in the Middle East and Asia, while refinery capacity is
being reduced or constrained in the US, Europe and Australia.
Continued high refinery utilization and improving transportation
activities are positive signs for tanker rates. For example, global
gasoline demand is now 2% below pre-COVID levels, compared to being
down more than 10% at the start of the year. Further relaxation of
international travel restrictions should help air travel and lead
to greater consumption of jet fuel, an important cargo for our
industry.
While we maintain a positive outlook about the
long-term prospects of the product tanker sector and the expanding
global economic recovery, we are guarded about the impact of
potential new COVID variants. Improving global GDP growth and
expanding personal and commercial mobility should increase demand
for seaborne transportation of a broad range of petroleum products.
The International Monetary Fund (“IMF”) recently updated its global
growth forecast to 5.9% this year and maintained a further 4.9%
increase for 2022. According to a leading research firm, seaborne
trade of oil products should rise 7.1% this year and a further 5.1%
to 1,022 million tons, just shy of 2019 levels. The vessel supply
picture continues to look positive due to the aging global fleet,
continued low ordering of new tankers and a substantial increase in
vessel demolition. At the end of October, 2021, the orderbook for
MRs was 6% of the global fleet, equaling the number of vessels 20
years of age or older. The combination of high construction prices
of over $40 million for a new MR with deliveries into 2024 and
various uncertainties surrounding environmental regulations have
discouraged ordering of new MRs. Vessel demolitions are on a record
pace as 32 MRs were scrapped in the first nine months of the
year.
Based on our optimistic view of the tanker
market, we have decided to further expand our fleet. In July 2021
we acquired a 2013 built eco-efficient MR which we named the “Pyxis
Karteria” and on November 15, 2021, we signed a Memorandum of
Agreement to acquire from an affiliated company, the “Pyxis Lamda”,
a 2017-built 50,296 dwt. eco-efficient MR that was constructed at
SPP Shipbuilding Co. Ltd. (“SPP”) in South Korea, for $32 million.
The Company’s audit committee, consisting of independent and
disinterested members of the Company’s board of directors, have
negotiated and approved this acquisition, which is expected to
close in December 2021. The consideration for this transaction will
consists of cash on hand, the issuance by the Company of $3 million
under an amended unsecured promissory note due 2024 and $3 million
in common shares; the non-cash component representing approximately
19% of the purchase price. The remaining portion of the
consideration of this purchase will be funded by borrowings under a
new $29 million loan from one of our existing lenders, which will
also refinance an outstanding loan on the Pyxis Malou, our 2009
built tanker. This 5-year bank loan will bear interest at Libor +
3.15%, have principal amortization of $625,000 per quarter, and be
secured by both vessels. This loan is subject to execution of
definitive loan documentation and standard closing conditions.
We believe that these acquisitions (including
the acquisition of Pyxis Karteria earlier this year) of quality
modern tonnage will set us on a path towards future growth and
optimally position the Company to participate in the expected
recovery of our sector.”
Results for the three months ended September 30, 2020
and 2021
For the three months ended September 30, 2021,
we reported a net loss attributable to common shareholders of $3.7
million, or $0.10 basic loss per share, compared to a net loss
attributable to common shareholders of $1.9 million, or $0.09 basic
loss per share, for the same period in 2020. The weighted average
share count had increased by 16.8 million shares from the third
quarter of 2020 to approximately 38.3 million common shares in the
third quarter of 2021. The daily TCE of $6,988 during the third
quarter of 2021 was 40.7% lower than the comparable period in 2020.
This decrease was mainly attributed to higher voyage related costs
and commissions, of $2.9 million during the three months ended
September 30, 2021 compared to $0.7 million in the same period of
2020. This increase was mostly attributed to higher spot employment
for our MRs at depressed charter rates and higher average bunker
fuel costs. Vessel operating expenses increased by $0.9 million, or
30.4%, for the three months ended September 30, 2021 compared to
the third quarter of 2020. However, lower interest and finance
costs of approximately $0.5 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 lower interest rate, mitigated the loss for the three months
ended September 30, 2021. Our negative adjusted EBITDA of $1.3
million, represented a decrease of $1.9 million from $0.6 million
for the same period in 2020.
Results for the nine months ended September 30, 2020 and
2021
For the nine months ended September 30, 2021, we
reported a net loss attributable to common shareholders of $7.3
million, or $0.21 basic loss per share, compared to a net loss
attributable to common shareholders of $4.3 million, or $0.20 basic
loss per share for the same period in 2020. The weighted average
share count increased by 13.5 million shares to approximately 35.0
million common shares for the most recent nine-month period. Lower
daily TCE of $9,370 during the nine-month period ended September
30, 2021, resulting from poor spot chartering conditions and
substantially higher bunker costs, were the primary factors that
contributed to an operating loss of $4.0 million during the recent
period. For the comparable period in 2020, the daily TCE was
$11,825 with operating loss of $0.5 million. In 2021, revenues, net
of $17.2 million were relatively stable compared to the same period
in 2020. The new vessel ‘Pyxis Karteria’, contributed 73 additional
operating days during the nine months ended September 30, 2021. The
increase of $2.0 million in voyage related costs and commissions
was partially offset by a decrease of approximately $1.3 million in
interest and finance costs, net. Increased vessel operating
expenses, general and administrative expenses, depreciation and
amortization of special survey costs aggregating $1.5 million
negatively impacted results for the most recent period. These
additional costs, along with the recognition of a $0.5 million loss
from debt extinguishment associated with the Eighthone Loan
refinancing and dividends declared or accrued of approximately $0.4
million for the Series A Convertible Preferred Stock, resulted in a
$3.0 million increased net loss attributable to common shareholders
for the nine months ended September 30, 2021 compared to the prior
period.
Our negative adjusted EBITDA of $0.1 million
represented a decrease of $3.1 million from $3.0 million for the
same nine-month period in 2020.
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
(Thousands
of U.S. dollars, except for daily TCE rates) |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
|
|
|
|
|
|
|
|
Revenues, net |
$ |
5,075 |
$ |
7,009 |
$ |
17,199 |
$ |
17,237 |
Voyage related costs and commissions |
|
(704) |
|
(3,570) |
|
(3,333) |
|
(5,374) |
Time charter equivalent revenues 1 |
$ |
4,371 |
$ |
3,439 |
$ |
13,866 |
$ |
11,863 |
|
|
|
|
|
|
|
|
|
Total operating days 2, 3 |
|
371 |
|
492 |
|
1,173 |
|
1,266 |
|
|
|
|
|
|
|
|
|
Daily time charter equivalent rate 1, 2, 3 |
|
11,783 |
|
6,988 |
|
11,825 |
|
9,370 |
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 nine
months ended September 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).3 Pyxis Karteria,
acquired during the third quarter of 2021 (July 15, 2021).
Management’s Discussion and Analysis of
Financial Results for the three months ended September 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 $7.0 million for
the three months ended September 30, 2021, represented an increase
of $1.9 million, or 38.1%, from $5.1 million in the comparable
period of 2020, primarily as a result of increased spot activity
for our MR tankers at reduced TCE rates counterbalanced by the
increased operating days due to our acquisition of Pyxis Karteria
in July, 2021, and increased employment in the two smaller
tankers.
Voyage related costs and commissions: Voyage
related costs and commissions of $3.6 million for the three months
ended September 30, 2021 increased by $2.9 million or 410%, from
$0.7 million over the comparable period in 2020, primarily as a
result of increased spot employment for our MRs and substantially
higher average bunker fuel costs. Under spot charters, all
voyage expenses are typically borne by us rather than the charterer
and an increase in spot chartering results in an increase in voyage
related costs and commissions.
Vessel operating expenses: Vessel operating
expenses of $3.6 million for the three months ended September 30,
2021, represented an increase of $0.9 million, or 30.5%, from $2.8
million in the comparable period in 2020. This increase was
primarily due to the secondhand vessel acquired in 2021 third
quarter, Pyxis Karteria, as well as higher crewing costs for the
fleet due to COVID-19-related measures.
General and administrative expenses: General and
administrative expenses of $0.7 million for the three months ended
September 30, 2021, remained relatively flat from the comparable
period in 2020.
Management fees: For the three months ended
September 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 $0.4 million represented an increase
of less than $0.1, attributable to the additional vessel, compared
to the 2020 period.
Amortization of special survey costs:
Amortization of special survey costs of $0.1 million for the three
months ended September 30, 2021, remained relatively stable
compared to the same period in 2020.
Depreciation: Depreciation of $1.3 million for
the three months ended September 30, 2021, increased by $0.2
million compared to the same period in 2020, due to the inclusion
of the newly acquired vessel.
Interest and finance costs, net: Interest and
finance costs, net, of $0.7 million for the three months ended
September 30, 2021, represented a decrease of $0.5 million, or
41.9%, from $1.3 million in the comparable period in 2020. This
decrease was primarily attributable to the refinancing of the
Eighthone Loan, which has helped to reduce the outstanding debt in
Eighthone and the overall average interest rate, as well as lower
LIBOR rates paid on floating rate bank debt, compared to the same
period in 2020, partial offset by interest costs on new Tenthone
loan, which was incurred when the Pyxis Karteria was acquired in
July 2021.
Management’s Discussion and Analysis of
Financial Results for the nine months ended September 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 $17.2 million
for the nine months ended September 30, 2021, remained flat
compared with the same period of 2020, as a result of increased
spot activity for our MR tankers at reduced TCE rates
counterbalanced by the increased operating days due to the Pyxis
Karteria acquisition in July, 2021, and increased employment in the
two smaller tankers.
Voyage related costs and commissions: Voyage
related costs and commissions of $5.4 million for the nine-month
period ended September 30, 2021, represented an increase of $2.1
million, or 61.2%, compared to $3.3 million for the same period in
2020. This increase was primarily a result of a 122 days increase
in spot employment for our MRs from 39 days during the nine months
ended September 2020 to 161 days during the comparable period in
2021, as well as substantially higher average bunker fuel costs per
metric ton. Under spot charters, all voyage expenses are typically
borne by us rather than the charterer and an increase in spot
chartering results in increased voyage related costs and
commissions.
Vessel operating expenses: Vessel operating
expenses of $9.0 million for the nine months ended September 30,
2021, represented an increase of $1.0 million, or 12.0%, compared
to the same period in 2020, mainly attributed to the addition of
newly acquired vessel, Pyxis Karteria, as well as higher crewing
costs due to COVID-19-related measures.
General and administrative expenses: General and
administrative expenses of $1.9 million for the nine-month period
ended September 30, 2021 were $0.1 million higher than the same
period in 2020, primarily attributed to higher professional
fees.
Management fees: Management fees paid to
Maritime and to ITM were $1.1 million in aggregate for both the
nine-month periods ended September 30, 2021 and 2020.
Amortization of special survey costs:
Amortization of special survey costs of $0.3 million for the period
ended on September 30, 2021, increased $0.1 million due to three
vessel drydockings completed in the second half of 2020.
Depreciation: Depreciation of $3.5 million for
the nine months ended September 30, 2021, increased $0.2 million or
6.8% primarily due to the addition to the fleet of the Pyxis
Karteria which was acquired on July 15, 2021.
Loss from debt extinguishment: For the nine
months ended September 30, 2021, we recorded a loss from debt
extinguishment of $0.5 million primarily reflecting a prepayment
fee and the write-off of remaining unamortized balance of deferred
financing costs, both of which are associated with the loan on the
Pyxis Epsilon that was refinanced at the end of first quarter of
2021. No such loss was recorded for the comparable period in
2020.
Interest and finance costs, net: Interest and
finance costs, net, for the nine months ended September 30, 2021,
of $2.5 million, represented a decrease of $1.3 million or 34.3%
from the compared period in 2020. The decrease was primarily
attributable to lower finance cost derived from the refinancing on
March 30, 2021 of the Eighthone Corp loan. Additionally, lower
outstanding balance of the Eighthone Corp loan and lower LIBOR
rates paid on floating rate bank debt, compared to the same period
in 2020, helped reduce interest expense.
Unaudited Interim Consolidated
Statements of Comprehensive LossFor the three months ended
September 30, 2020 and 2021(Expressed in thousands of U.S. dollars,
except for share and per share data)
|
|
|
Three months ended September 30, |
|
|
|
2020 |
|
2021 |
|
|
|
|
|
|
Revenues,
net |
|
|
$
5,075 |
|
$
7,009 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage related costs and
commissions |
|
|
(704) |
|
(3,570) |
Vessel operating expenses |
|
|
(2,796) |
|
(3,648) |
General and administrative
expenses |
|
|
(655) |
|
(673) |
Management fees, related
parties |
|
|
(152) |
|
(179) |
Management fees, other |
|
|
(194) |
|
(227) |
Amortization of special survey
costs |
|
|
(66) |
|
(103) |
Depreciation |
|
|
(1,113) |
|
(1,334) |
Operating
loss |
|
|
(605) |
|
(2,725) |
|
|
|
|
|
|
Other
expenses: |
|
|
|
|
|
Loss from financial derivative
instrument |
|
|
(2) |
|
(18) |
Interest and finance costs,
net |
|
|
(1,266) |
|
(735) |
Total other expenses,
net |
|
|
(1,268) |
|
(753) |
|
|
|
|
|
|
Net loss |
|
|
$
(1,873) |
|
$
(3,478) |
|
|
|
|
|
|
Dividend Series A Convertible
Preferred Stock |
|
|
— |
|
(228) |
|
|
|
|
|
|
Net loss attributable
to common shareholders |
|
|
$
(1,873) |
|
$
(3,706) |
|
|
|
|
|
|
Loss per common share,
basic |
|
|
$
(0.09) |
|
$
(0.10) |
|
|
|
|
|
|
Weighted average number of
common shares, basic |
|
|
21,560,656 |
|
38,316,854 |
Unaudited Interim Consolidated Statements of
Comprehensive LossFor the nine months ended September 30,
2020 and 2021(Expressed in thousands of U.S. dollars, except for
share and per share data)
|
|
|
Nine months ended September 30, |
Unaudited Consolidated Statements of Comprehensive
Loss |
|
|
2020 |
|
2021 |
|
|
|
|
|
|
Revenues,
net |
|
$ |
17,199 |
$ |
17,237 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage related costs and
commissions |
|
|
(3,333) |
|
(5,374) |
Vessel operating expenses |
|
|
(8,024) |
|
(8,990) |
General and administrative
expenses |
|
|
(1,768) |
|
(1,899) |
Management fees, related
parties |
|
|
(484) |
|
(479) |
Management fees, other |
|
|
(626) |
|
(614) |
Amortization of special survey
costs |
|
|
(163) |
|
(306) |
Depreciation |
|
|
(3,302) |
|
(3,528) |
Allowance for credit
losses |
|
|
— |
|
(9) |
Gain from the sale of vessel,
net |
|
|
7 |
|
— |
Operating
loss |
|
|
(494) |
|
(3,962) |
|
|
|
|
|
|
Other
expenses: |
|
|
|
|
|
Loss from debt
extinguishment |
|
|
— |
|
(458) |
Loss from financial derivative
instrument |
|
|
— |
|
(18) |
Interest and finance costs,
net |
|
|
(3,782) |
|
(2,485) |
Total other expenses,
net |
|
|
(3,782) |
|
(2,961) |
|
|
|
|
|
|
Net loss |
|
$ |
(4,276) |
$ |
(6,923) |
|
|
|
|
|
|
Dividend Series A Convertible
Preferred Stock |
|
|
— |
|
(381) |
|
|
|
|
|
|
Net loss attributable
to common shareholders |
|
$ |
(4,276) |
$ |
(7,304) |
|
|
|
|
|
|
Loss per common share,
basic |
|
$ |
(0.20) |
$ |
(0.21) |
|
|
|
|
|
|
Weighted average
number of common shares, basic |
|
|
21,490,669 |
|
35,009,313 |
Consolidated Balance SheetsAs of December 31,
2020 and September 30, 2021 (unaudited)(Expressed in thousands of
U.S. dollars, except for share and per share data)
|
|
|
December 31, |
|
September 30, |
|
|
|
2020 |
|
2021 (unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,620 |
$ |
7,742 |
Restricted cash, current portion |
|
|
— |
|
347 |
Inventories |
|
|
681 |
|
1,066 |
Trade accounts receivable |
|
|
672 |
|
1,954 |
Less: Allowance for credit losses |
|
|
(9) |
|
(9) |
Trade accounts receivable, net |
|
|
663 |
|
1,945 |
Due from related parties |
|
|
2,308 |
|
— |
Prepayments and other current assets |
|
|
133 |
|
260 |
Total current assets |
|
|
5,405 |
|
11,360 |
|
|
|
|
|
|
FIXED ASSETS, NET: |
|
|
|
|
|
Vessels, net |
|
|
83,774 |
|
100,277 |
Total fixed assets, net |
|
|
83,774 |
|
100,277 |
|
|
|
|
|
|
OTHER NON-CURRENT ASSETS: |
|
|
|
|
|
Restricted cash, net of current portion |
|
|
2,417 |
|
2,700 |
Financial derivative instrument |
|
|
— |
|
56 |
Deferred dry dock and special survey costs, net |
|
|
1,594 |
|
1,288 |
Total other non-current assets |
|
|
4,011 |
|
4,044 |
Total assets |
|
$ |
93,190 |
$ |
115,681 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current portion of long-term debt, net of deferred financing
costs |
|
$ |
3,255 |
$ |
5,872 |
Trade accounts payable |
|
|
3,642 |
|
2,697 |
Due to related parties |
|
|
— |
|
120 |
Hire collected in advance |
|
|
726 |
|
— |
Accrued and other liabilities |
|
|
677 |
|
724 |
Total current liabilities |
|
|
8,300 |
|
9,413 |
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Long-term debt, net of current portion and deferred financing
costs |
|
|
50,331 |
|
51,028 |
Promissory note |
|
|
5,000 |
|
3,000 |
Total non-current liabilities |
|
|
55,331 |
|
54,028 |
|
|
|
|
|
|
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 449,673 Series A Convertible
Preferred Shares issued and outstanding as at December 31, 2020 and
September 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 September 30, 2021, respectively) |
|
|
22 |
|
38 |
Additional paid-in capital |
|
|
79,692 |
|
109,672 |
Accumulated deficit |
|
|
(50,155) |
|
(57,470) |
Total stockholders' equity |
|
|
29,559 |
|
52,240 |
Total liabilities and stockholders'
equity |
|
$ |
93,190 |
$ |
115,681 |
Unaudited Interim Consolidated
Statements of Cash Flows For the nine months ended
September 30, 2020 and 2021(Expressed in thousands of U.S.
Dollars)
|
|
|
Nine months ended September 30, |
|
|
|
2020 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(4,276) |
$ |
(6,923) |
Adjustments to reconcile net loss to net cash provided by
operating activities: |
|
|
|
|
Depreciation |
|
|
3,302 |
|
3,528 |
Amortization of special survey
costs. |
|
|
163 |
|
306 |
Amortization of financing
costs |
|
|
265 |
|
171 |
Loss from debt
extinguishment |
|
|
— |
|
458 |
Loss from financial derivative
instrument |
|
|
— |
|
18 |
Gain on sale of vessel,
net |
|
|
(7) |
|
— |
Issuance of common stock under
the promissory note |
|
|
112 |
|
55 |
Changes in assets and
liabilities: |
|
|
|
|
|
Inventories |
|
|
67 |
|
(385) |
Due from/to related
parties |
|
|
(8,066) |
|
2,428 |
Trade accounts receivable,
net |
|
|
990 |
|
(1,282) |
Prepayments and other
assets |
|
|
295 |
|
(127) |
Special survey cost |
|
|
(446) |
|
— |
Trade accounts payable |
|
|
(1,549) |
|
(933) |
Hire collected in advance |
|
|
(1,022) |
|
(726) |
Accrued and other
liabilities |
|
|
75 |
|
(11) |
Net cash used in
operating activities |
|
$ |
(10,097) |
$ |
(3,423) |
|
|
|
|
|
|
Cash flow from
investing activities: |
|
|
|
|
|
Proceeds from the sale of
vessel, net |
|
|
13,197 |
|
— |
Vessel acquisition |
|
|
— |
|
(20,000) |
Vessel additions |
|
|
(13) |
|
(3) |
Ballast water treatment system
installation |
|
|
(391) |
|
(155) |
Net cash provided by /
(used in) investing activities |
|
$ |
12,793 |
$ |
(20,158) |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Proceeds from long-term
debt |
|
|
15,250 |
|
30,500 |
Repayment of long-term
debt |
|
|
(19,079) |
|
(27,150) |
Gross proceeds from issuance
of common stock |
|
|
— |
|
25,000 |
Common stock offering
costs |
|
|
(34) |
|
(1,860) |
Gross proceeds from issuance
of preferred shares |
|
|
— |
|
6,170 |
Preferred shares offering
costs |
|
|
(19) |
|
(512) |
Proceeds from exercise of
warrants into common shares |
|
|
— |
|
202 |
Repayment of promissory
note |
|
|
— |
|
(1,000) |
Financial derivative
instrument |
|
|
— |
|
(74) |
Payment of financing
costs |
|
|
(182) |
|
(625) |
Preferred stock dividends
paid |
|
|
— |
|
(318) |
Net cash provided by /
(used in) financing activities |
|
$ |
(4,064) |
$ |
30,333 |
|
|
|
|
|
|
Net increase/ (decrease) in
cash and cash equivalents and restricted cash |
|
|
(1,368) |
|
6,752 |
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 |
|
$ |
3,808 |
$ |
10,789 |
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
Cash paid for interest |
|
|
3,435 |
|
2,298 |
Non-cash financing
activities – issuance of common stock under the promissory
note |
169 |
|
1,055 |
Unpaid portion for common stock offering costs
and issuance of preferred shares |
|
6 |
|
153 |
Unpaid portion of financing costs |
|
118 |
|
40 |
Unpaid portion of vessel additions |
|
11 |
|
28 |
Liquidity, Debt and Capital Structure
Pursuant to our loan agreements, as of September
30, 2021, we were required to maintain minimum liquidity of $3.05
million. Total cash and cash equivalents, including restricted
cash, aggregated to $10.8 million as of September 30, 2021.
Total funded debt (in thousands of U.S.
dollars), net of deferred financing costs:
|
|
|
|
|
|
December 31, 2020 |
|
September 30, 2021 |
Funded debt, net of deferred financing
costs |
|
|
|
|
$ |
53,586 |
$ |
56,900 |
Promissory Note - related party |
|
|
|
|
|
5,000 |
|
3,000 |
Total funded debt |
|
|
|
|
$ |
58,586 |
$ |
59,900 |
Our weighted average interest rates on our total
funded debt for the three and nine-month periods ended September
30, 2021 were 4.3% and 5.3%, respectively.
Upon repayment of the previous loan facility of
the Pyxis Epsilon, the maturity date for the Amended & Restated
Promissory Note with Maritime Investors, an affiliated entity with
our Chairman and Chief Executive Officer, 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 the 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 to be due on April 1, 2023, with interest
accruing at an annual rate of 7.5% (since June 17, 2021), payable
quarterly in cash. The amendment was approved by the Company’s
audit committee.
On July 15, 2021, we took delivery of the Pyxis
Karteria, a 2013 built 46,652 dwt MR that was constructed at
Hyundai Mipo Dockyard (“HMD”). 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 an
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 Markets 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 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 October 2021, we paid cash
dividends of $0.1615 per Series A Preferred Share, which aggregated
$0.32 million for the nine month period ended September 30,
2021.
Update on Shares Issued and Outstanding: As of
November 12, 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
444,571 non-tradeable underwriter warrants that may be exercised
for our common shares, which have a weighted average exercise price
of $2.16 per common share, and 4,683 warrants that may be exercised
for our Series A Preferred Shares, 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 September 30, |
|
Nine months ended September 30, |
(In thousands of U.S. dollars) |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
Reconciliation of Net loss to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,873) |
$ |
(3,478) |
$ |
(4,276) |
$ |
(6,923) |
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,113 |
|
1,334 |
|
3,302 |
|
3,528 |
|
|
|
|
|
|
|
|
|
Amortization of special survey costs |
|
66 |
|
103 |
|
163 |
|
306 |
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
1,266 |
|
735 |
|
3,782 |
|
2,485 |
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
572 |
$ |
(1,306) |
$ |
2,971 |
$ |
(604) |
|
|
|
|
|
|
|
|
|
Loss from debt extinguishment |
|
— |
|
— |
|
— |
|
458 |
|
|
|
|
|
|
|
|
|
Loss / (Gain) from financial derivative instrument |
|
2 |
|
18 |
|
— |
|
18 |
|
|
|
|
|
|
|
|
|
Gain from the sale of vessel, net |
|
— |
|
— |
|
(7) |
|
— |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
574 |
$ |
(1,288) |
$ |
2,964 |
$ |
(128) |
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. Dollars per day) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2020 |
|
2021 |
|
2020 |
|
2021 |
Eco-Efficient MR2: (2021: 3 of our
vessels)* |
|
|
|
|
|
|
|
|
|
(2020: 2 of our vessels) |
TCE : |
|
14,313 |
|
6,982 |
|
14,816 |
|
10,892 |
|
Opex : |
|
6,261 |
|
7,869 |
|
6,065 |
|
7,086 |
|
Utilization % : |
|
99.4% |
|
90.8% |
|
98.5% |
|
95.5% |
Eco-Modified MR2: (1 of our vessels) |
|
|
|
|
|
|
|
|
|
|
TCE : |
|
15,019 |
|
8,372 |
|
15,196 |
|
10,353 |
|
Opex : |
|
6,565 |
|
7,017 |
|
6,242 |
|
6,762 |
|
Utilization % : |
|
100.0% |
|
84.4% |
|
100.0% |
|
94.9% |
Small Tankers: (2 of our vessels) |
|
|
|
|
|
|
|
|
|
|
TCE : |
|
5,352 |
|
6,386 |
|
5,481 |
|
6,554 |
|
Opex : |
|
5,425 |
|
5,160 |
|
5,112 |
|
4,999 |
|
Utilization % : |
|
60.9% |
|
96.2% |
|
70.6% |
|
75.5% |
Fleet: (2021: 6 vessels) * |
|
|
|
|
|
|
|
|
|
(2020: 5 vessels) ** |
TCE : |
|
11,783 |
|
6,988 |
|
11,825 |
|
9,370 |
|
Opex : |
|
5,987 |
|
6,795 |
|
5,719 |
|
6,234 |
|
Utilization % : |
|
83.6% |
|
91.6% |
|
87.4% |
|
87.8% |
* Pyxis Karteria, acquired during the third quarter of 2021
(July 15, 2021).
** Pyxis Delta, a standard MR, was sold on January 13, 2020, and
has been excluded from the calculations for the nine months ended
September 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).
2021 Annual Meeting of
Shareholders
At the Company’s 2021 Annual Meeting of
Shareholders held on November 11, 2021, Mr. Valentis, a Class 1
Director, was re-elected for the term ending in 2024.
Conference Call and Webcast
We will host a conference call to discuss our
results at 4:30 p.m., Eastern Time, on Monday, November 15,
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, November 22, 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/3408962/EFD0986947C0D9A3C7AB12C007432101An
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 November 12,
2021)
Vessel Name |
Shipyard |
Vessel type |
Carrying Capacity
(dwt) |
Year Built |
Type of charter |
Charter(1)Rate (per
day) |
Anticipated Redelivery 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 |
Dec
2021 |
Pyxis Karteria |
HMD / S. Korea |
MR |
46,652 |
2013 |
Time |
13,500 |
Nov
2021 |
Pyxis Malou |
SPP / S. Korea |
MR |
50,667 |
2009 |
Spot |
n/a |
n/a |
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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