Castor Maritime Inc. (NASDAQ: CTRM) (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and six months ended June 30, 2023.
Earnings Highlights of the Second
Quarter Ended June 30, 2023:
- Total Vessel Revenues from
continuing operations: $25.3 million for the three months ended
June 30, 2023, as compared to $41.7 million for the three months
ended June 30, 2022, or a 39.3% decrease;
- Net income of $8.2 million
for the three months ended June 30, 2023, as compared to $27.8
million for the three months ended June 30, 2022, or a 70.5%
decrease;
- Net income from continuing
operations: $8.2 million for the three months ended June 30, 2023,
as compared to $22 million for the three months ended June 30,
2022, or a 62.7% decrease;
- Earnings (basic and
diluted) per common share from continuing operations: $0.09 per
share for the three months ended June 30, 2023, as compared to
$0.23 per share for the three months ended June 30,
2022;
- EBITDA from continuing
operations(1): $16.1 million for
the three months ended June 30, 2023, as compared to $27.9 million
for the three months ended June 30, 2022;
- Adjusted EBITDA from
continuing operations(1): $13.5
million for the three months ended June 30, 2023, as compared to
$27.9 million for the three months ended June 30,
2022;
- Cash and restricted cash of
$38.3 million as of June 30, 2023, as compared to $109.9 million as
of December 31, 2022.
Highlights of the Six Months Ended June
30, 2023:
- Total Vessel Revenues from
continuing operations: $49.7 million for the six months ended June
30, 2023, as compared to $79.5 million for the six months ended
June 30, 2022, or a 37.5% decrease;
- Net income of $19 million
for the six months ended June 30, 2023, as compared to $47.7
million for the six months ended June 30, 2022, or a 60.2%
decrease;
- Net income from continuing
operations: $1.7 million for the six months ended June 30, 2023, as
compared to $40.4 million for the six months ended June 30, 2022,
or a 95.8% decrease;
- Earnings (basic and
diluted) per common share from continuing operations: $0.02 per
share for the six months ended June 30, 2023, as compared to $0.43
per share for the six months ended June 30, 2022;
- EBITDA from continuing
operations(1): $17.7 million for
the six months ended June 30, 2023, as compared to $52.2 million
for the six months ended June 30, 2022;
- Adjusted EBITDA from
continuing operations(1): $22.8
million for the six months ended June 30, 2023, as compared to
$52.2 million for the six months ended June 30, 2022;
- The spin-off (the
“Spin-Off”) of our Aframax/LR2 and Handysize tanker segments to a
new Nasdaq listed company, Toro Corp., was completed on March 7,
2023; and
- Discontinued operations:
Following the Spin-Off, the results of the tanker business are
reported as discontinued operations for all periods
presented.
(1) EBITDA and Adjusted EBITDA are not
recognized measures under United States generally accepted
accounting principles (“U.S. GAAP”). Please refer to Appendix B for
the definition and reconciliation of these measures to Net income,
the most directly comparable financial measure calculated and
presented in accordance with U.S. GAAP.
Management Commentary Second Quarter
2023:
Mr. Petros Panagiotidis, Chairman, Chief
Executive Officer and Chief Financial Officer of Castor
commented:
“In the second quarter of 2023 we continued to
observe a softness in the dry cargo market compared to the second
quarter a year ago, which affected our revenues and cash flows. We
believe that the dry bulk fundamentals remain healthy given the
historically low order book and the expected recovery for the
Chinese economy.
We enjoy a strong balance sheet and we remain
committed to our growth trajectory by seeking further opportunities
in the shipping space.”
Earnings Commentary:
Second Quarter ended June 30, 2023, and
2022 Results
Total vessel revenues from continuing operations
for the three months ended June 30, 2023, decreased to $25.3
million from $41.7 million in the same period of 2022. This
variation was mainly driven by the decrease in prevailing charter
rates of dry bulk vessels. The decrease has been partly offset by
the increase in our Available Days (defined below) from 1,786 days
in the three months ended June 30, 2022, to 1,904 days in the three
months ended June 30, 2023, following the acquisition of two
containerships that were delivered to the Company in November 2022,
both of which are employed under fixed rate time charter
contracts.
The increase in voyage expenses from continuing
operations to $1.4 million in the three months ended June 30, 2023,
from $0.4 million in the same period of 2022, is mainly associated
with the decrease of gain on bunkers by $1.7 million partly offset
by: (i) decreased bunkers consumption and (ii) decreased brokerage
commission expenses, corresponding to the decrease in vessel
revenues discussed above.
The decrease in vessel operating expenses from
continuing operations by $0.4 million, to $10.4 million in the
three months ended June 30, 2023, from $10.8 million in the same
period of 2022, mainly reflects the decrease in repairs, spares and
maintenance costs for a number of our dry bulk vessels.
Management fees from continuing operations in
the three months ended June 30, 2023, amounted to $1.8 million,
whereas in the same period of 2022, management fees totaled $1.5
million. This increase in management fees is mainly due to the
increase in our Ownership Days for which our managers charge us a
daily management fee, stemming from the expansion of our fleet with
the acquisition of the two containerships and the amendments to our
management agreements with Castor Ships noted below.
The increase in vessels’ depreciation and
amortization costs by $1.2 million, to $5.5 million in the three
months ended June 30, 2023, from $4.3 million in the same period of
2022, mainly reflect the increase in our Ownership Days following
the acquisition of the two containerships.
General and administrative expenses from
continuing operations in the three months ended June 30, 2023,
amounted to $1.7 million, whereas, in the same period of 2022
general and administrative expenses totaled $1.1 million. This
increase stemmed from a higher fee paid to Castor Ships, our
manager, following entry into an amended and restated master
management agreement with Castor Ships with effect from July 1,
2022.
Gain on sale of vessel from continuing
operations in the three months ended June 30, 2023, amounted to
$3.1 million following the sale of M/V Magic Rainbow on April 18,
2023.
During the three months ended June 30, 2023, we
incurred net interest costs and finance costs from continuing
operations amounting to $2.4 million compared to $1.5 million
during the same period in 2022. The increase is due to our higher
weighted average interest rate as a result of the increase in the
variable benchmark rates during the three months ended June 30,
2023, as compared with the same period of 2022, partly offset by an
increase in interest we earned from time deposits due to increased
interest rates.
Other income / (expenses), net from continuing
operations in the three months ended June 30, 2023, amounted to
$3.0 million, which mainly includes the unrealized gain of $2.6
million from revaluing our investments in listed equity securities
(investment in Eagle Bulk Shipping Inc.) at period end market
rates. We did not hold any investment in equity securities during
the three months period ended June 30, 2022.
Recent
Financial Developments
Commentary:
At-the-market (“ATM”) common stock
offering program
On May 23, 2023, we entered into an equity
distribution agreement, for an at-the-market offering, with Maxim
Group LLC acting as a sales agent, under which we may sell an
aggregate offering price of up to $30.0 million (the “ATM
Program”). No warrants, derivatives, or other share classes were
associated with this transaction. As of June 30, 2023, we had
received gross proceeds of $0.8 million under the ATM Program by
issuing 1,879,888 common shares. The net proceeds under the ATM
Program, after deducting sales commissions and other transaction
fees and expenses (advisory and legal fees), amounted to $0.7
million. As of August 7, 2023, we had 96,623,876 common shares
issued and outstanding.
New Series D Preferred
shares
On August 7, 2023, we agreed to issue 50,000
Series D Preferred shares (“Pref D shares”) of $1,000 each to Toro
Corp (“Toro”) for a total consideration of $50 million in cash. The
distribution rate of the Pref D shares is 5%, paid quarterly, and
they are convertible to common shares of Castor from the first
anniversary of the issue date at the lower of (i) $0.70 and (ii)
the 5 day value weighted average price immediately preceding the
conversion, subject to a minimum conversion price. The distribution
rate is set to increase by a factor of 1.3 times per annum from
year 7 with a maximum rate of 20%. This transaction and its terms
were approved by the independent members of the board of directors
of each of Castor and Toro at the recommendation of their
respective independent committees who negotiated the
transaction.
Investment in listed equity
securities
On June 30, 2023, we filed a Schedule 13G,
reporting that we hold 1,391,500 shares of common stock of Eagle
Bulk Shipping Inc. (“Eagle”), representing 14.99% of the issued and
outstanding shares of common stock of Eagle as of June 23,
2023.
Liquidity/ Financing/ Cash flow
update
Our consolidated cash position (including our
restricted cash) from continuing operations as of June 30, 2023,
decreased by $71.5 million to $38.3 million, as compared to our
cash position on December 31, 2022, which amounted to $109.9
million. The decrease was mainly the result of: (i) $8.5 million of
net operating cash flows received during the six months ended June
30, 2023, (ii) $72 million of net cash outflow from the purchase
and sale of equity securities, offset by dividends received of $0.4
million, (iii) $11.4 million of net proceeds from the sale of M/V
Magic Rainbow to an unaffiliated third-party buyer, offset by $0.2
million used for other capital expenditures relating to our fleet,
(iv) $0.2 million of dividend received from our investment in Toro,
(v) $23.1 million for scheduled principal repayments and early
prepayments due to sale of vessel, on our debt, (vi) $2.7 million
cash reimbursement from Toro related to the Spin-Off expenses
incurred by us on Toro’s behalf during 2022 and up to the
completion of the Spin-Off and (vii) $0.7 million of net proceeds
under the ATM Program.
As of June 30, 2023, our total debt (including
the debt related to assets held for sale) from continuing
operations, gross of unamortized deferred loan fees, was $117.3
million of which $31.7 million is repayable within one year, as
compared to $140.5 million of gross total debt as of December 31,
2022.
Recent
Business Developments
Commentary:
Sale of vessels
On April 18, 2023, the M/V Magic Rainbow was
delivered to its new owners. The Company recorded during the second
quarter of 2023 a net gain on the sale of the M/V Magic Rainbow of
approximately $3.1 million.
On June 2, 2023, we entered into an agreement
with a third party for the sale of the M/V Magic Twilight, a
2010-built Kamsarmax, at a price of $17.5 million. On July 20,
2023, the M/V Magic Twilight was delivered to its new third party
owners. The Company expects to record during the third quarter of
2023 a net gain on the sale of the M/V Magic Twilight of
approximately $4.0 million, excluding any transaction related
costs.
Recent Other
Developments Commentary:
Nasdaq Capital Market Minimum Bid Price
Notice
On April 20, 2023, the Company received written
notification from the Nasdaq Stock Market that it was not in
compliance with the minimum $1.00 per share bid price requirement
for continued listing on the Nasdaq Capital Market and was provided
with 180 calendar days, or until October 17, 2023, to regain
compliance with this requirement. The Company intends to monitor
the closing bid price of its common stock during the compliance
period and is considering its options to regain compliance with the
Nasdaq Capital Market minimum bid price requirement. The Company
can cure this deficiency if the closing bid price of its common
stock is $1.00 per share or higher for at least ten consecutive
business days during the grace period. In the event the Company
does not regain compliance within the grace period and meets all
other listing standards and requirements, the Company may be
eligible for an additional 180-day grace period. The Company
intends to cure the deficiency within the prescribed grace periods.
During this time, the Company’s common stock will continue to be
listed and trade on the Nasdaq Capital Market. The Company’s
business operations are not affected by the receipt of the
notification.
Fleet Employment Status (as of August 7,
2023) During the three months ended June 30, 2023, we
operated on average 21.2 vessels earning a Daily TCE
Rate(2) of $12,530 as compared to an average of
20.0 vessels earning a Daily TCE Rate(2) of
$23,137 during the same period in 2022.
Our current employment profile is presented immediately
below.
(2) Daily TCE Rate is not a recognized measure under U.S. GAAP.
Please refer to Appendix B for the definition and reconciliation of
this measure to Total vessel revenues, the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Dry Bulk Carriers |
Vessel Name |
Type |
Capacity(dwt) |
YearBuilt |
Country ofConstruction |
Type ofEmployment |
Daily Gross CharterRate |
Estimated Redelivery Date |
Earliest |
Latest |
Magic Orion |
Capesize |
180,200 |
2006 |
Japan |
TC (1) period |
101% of BCI5TC (2) |
Jan-24 |
Apr-24 |
Magic Venus |
Kamsarmax |
83,416 |
2010 |
Japan |
TC period |
100% of BPI5TC(3) |
Apr-24 |
Jul-24 |
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
TC period |
97% of BPI5TC |
Sep-23 |
Dec-23 |
Magic Argo |
Kamsarmax |
82,338 |
2009 |
Japan |
TC period |
103% of BPI5TC |
Apr-24 |
Jul-24 |
Magic Perseus |
Kamsarmax |
82,158 |
2013 |
Japan |
TC period |
100% of BPI5TC |
Sep-23 |
Dec-23 |
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
TC period |
$18,000 per day (4) |
Nov-23 (12) |
Feb-24 |
Magic Nebula |
Kamsarmax |
80,281 |
2010 |
Korea |
TC trip |
$9,350 per day |
Oct-23 |
- |
Magic Nova |
Panamax |
78,833 |
2010 |
Japan |
TC period |
101% of BPI4TC (5) |
Sep-23(10) |
Dec-23 |
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
102% of BPI4TC |
Oct-23(9) |
Jan-24 |
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
TC period |
102% of BPI4TC |
Aug-23 |
Nov-23 |
Magic Horizon |
Panamax |
76,619 |
2010 |
Japan |
TC period |
103% of BPI4TC |
Mar-24 |
-(7) |
Magic Moon |
Panamax |
76,602 |
2005 |
Japan |
TC period |
95% of BPI4TC |
Apr-23 |
Jul-23 (13) |
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
$13,100 per day (6) |
Oct-23(11) |
Jan-24 |
Magic Sun |
Panamax |
75,311 |
2001 |
Korea |
TC trip |
$13,000 per day (8) |
Oct-23 |
- |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
TC period |
95% of BPI4TC |
May-24 |
Aug-24 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
100% of BPI4TC |
Mar-24 |
Jun-24 |
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
100% of BPI4TC |
Dec-23 |
Mar-24 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
101% of BPI4TC |
Apr-24 |
Jul-24 |
|
Containerships |
Vessel Name |
Type |
Capacity (dwt) |
Year Built |
Country ofConstruction |
Type ofEmployment |
Daily Gross CharterRate ($/day) |
Estimated Redelivery Date |
Earliest |
Latest |
Ariana A |
Containership |
38,117 |
2005 |
Germany |
TC period |
$20,200 |
Jan-24 |
Mar-24 |
Gabriela A |
Containership |
38,121 |
2005 |
Germany |
TC period |
$26,350 |
Feb-24 |
May-24 |
(1) TC stands for time
charter.(2) The benchmark vessel used in the
calculation of the average of the Baltic Capesize Index 5TC routes
(“BCI5TC”) is a non-scrubber fitted 180,000mt dwt vessel (Capesize)
with specific age, speed – consumption, and design characteristics.
(3) The benchmark vessel used in the calculation of the
average of the Baltic Panamax Index 5TC routes (“BPI5TC”) is a
non-scrubber fitted 82,000mt dwt vessel (Kamsarmax) with specific
age, speed–consumption, and design characteristics.(4)
The vessel’s daily gross charter rate is equal to 98% of
BPI5TC. In accordance with the prevailing charter party, on April
5, 2023, the owners converted the index-linked rate to fixed from
April 7, 2023, until September 30, 2023, at a rate of $18,000 per
day. Upon completion of this period, the rate will be converted
back to index‑linked.(5) The benchmark vessel used in
the calculation of the average of the Baltic Panamax Index 4TC
routes (“BPI4TC”) is a non-scrubber fitted 74,000mt dwt vessel
(Panamax) with specific age, speed – consumption, and design
characteristics. (6) The vessel’s daily gross charter
rate is equal to 96% of BPI4TC. In accordance with the prevailing
charter party, on January 16, 2023, the owners converted the
index-linked rate to fixed from February 1, 2023, until September
30, 2023, at a rate of $13,100 per day. Upon completion of this
period, the rate will be converted back to index‑linked.(7)
The earliest redelivery under the prevailing charter party is
8 months after delivery. Thereafter both Owners and Charterers have
the option to terminate the charter by providing 3 months written
notice to the other party.(8) On July 19, 2023, the
vessel was fixed under a trip time charter contract, with expected
delivery on about 10/08/2023, with a rate of $13,000 / Day plus
$300,000 as a one-off Gross Ballast Bonus, and estimated duration
of around 65 days, in accordance with the governing charter
party.(9) On October 2, 2023, the vessel will be
delivered under a new charter with a daily gross charter rate equal
to 102% BPI4TC for a minimum period of 7 months after delivery.
Thereafter, in accordance with the prevailing charter party, both
Owners and Charterers have the option to terminate the charter by
providing 3 months written notice to the other party.(10)
On September 19, 2023, the vessel will be delivered under a
new charter with a daily gross charter rate equal to 101% BPI4TC
for a minimum period of 7 months after delivery. Thereafter, in
accordance with the prevailing charter party, both Owners and
Charterers have the option to terminate the charter by providing 3
months written notice to the other party.(11) On
October 12, 2023, the vessel will be delivered under a new charter
with a daily gross charter rate equal to 96% BPI4TC for a minimum
period of 7 months after delivery. Thereafter, in accordance with
the prevailing charter party, both Owners and Charterers have the
option to terminate the charter by providing 3 months written
notice to the other party.(12) On November 3, 2023, the
vessel will be delivered under a new charter with a daily gross
charter rate equal to 98% BPI5TC for a minimum period of 7 months
after delivery. Thereafter, in accordance with the prevailing
charter party, both Owners and Charterers have the option to
terminate the charter by providing 3 months written notice to the
other party.(13) The vessel is still employed under its
existing charter party. As of June 30, 2023, the vessel is
classified as held for sale and is expected to be delivered to its
new owners during the third quarter of 2023.
Financial Results Overview of Continuing
Operations:
Set forth below are selected financial data of
our dry bulk and containerships fleets (continuing operations) for
each of the three and six months ended June 30, 2023, and 2022,
respectively:
|
Three Months Ended |
|
Six Months Ended |
(Expressed in U.S. dollars) |
|
June 30,2023(unaudited) |
|
June 30,2022(unaudited) |
|
June 30,2023(unaudited) |
June 30,2022(unaudited) |
Total vessel revenues |
$ |
25,278,111 |
$ |
41,718,547 |
$ |
49,747,081 |
79,529,412 |
Operating income |
$ |
7,632,559 |
$ |
23,519,840 |
$ |
10,778,134 |
43,489,330 |
Net income, net of taxes |
$ |
8,186,791 |
$ |
21,975,782 |
$ |
1,676,753 |
40,432,494 |
EBITDA (1) |
$ |
16,106,765 |
$ |
27,930,009 |
$ |
17,721,211 |
52,171,020 |
Adjusted EBITDA(1) |
$ |
13,518,604 |
$ |
27,930,009 |
$ |
22,828,638 |
52,171,020 |
Earnings (basic and diluted)
per common share |
$ |
0.09 |
$ |
0.23 |
$ |
0.02 |
0.43 |
|
|
|
|
|
|
|
|
(1) EBITDA and Adjusted EBITDA
are not recognized measures under U.S. GAAP. Please refer to
Appendix B of this release for the definition and reconciliation of
these measures to Net income, the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Consolidated Fleet Selected Financial
and Operational Data:
Set forth below are selected financial and
operational data of our dry bulk and containership fleets
(continuing operations) for each of the three and six months ended
June 30, 2023, and 2022, respectively, that we believe are useful
in analyzing trends in our results of operations.
|
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
(Expressed in U.S. dollars except for operational
data) |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Ownership Days (1)(7) |
|
1,928 |
|
|
1,820 |
|
|
|
3,908 |
|
|
3,616 |
|
Available Days (2)(7) |
|
1,904 |
|
|
1,786 |
|
|
|
3,884 |
|
|
3,582 |
|
Operating Days (3)(7) |
|
1,890 |
|
|
1,757 |
|
|
|
3,869 |
|
|
3,538 |
|
Daily TCE Rate (4) |
$ |
12,530 |
|
$ |
23,137 |
|
|
$ |
12,113 |
|
$ |
21,816 |
|
Fleet Utilization (5) |
|
99 |
% |
|
98 |
% |
|
|
100 |
% |
|
99 |
% |
Daily vessel operating
expenses (6) |
$ |
5,399 |
|
$ |
5,927 |
|
|
$ |
5,547 |
|
$ |
5,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ownership Days are the total number of
calendar days in a period during which we owned a vessel.
(2) Available Days are the Ownership Days in a
period less the aggregate number of days our vessels are off-hire
due to scheduled repairs, dry-dockings or special or intermediate
surveys.
(3) Operating Days are the
Available Days in a period after subtracting unscheduled off-hire
and idle days.
(4) Daily TCE Rate is not a
recognized measure under U.S. GAAP. Please refer to Appendix B for
the definition and reconciliation of this measure to Total vessel
revenues, the most directly comparable financial measure calculated
and presented in accordance with U.S. GAAP.
(5) Fleet Utilization is
calculated by dividing the Operating Days during a period by the
number of Available Days during that period.
(6) Daily vessel operating
expenses are calculated by dividing vessel operating expenses for
the relevant period by the Ownership Days for such period.
(7) Our definitions of
Ownership Days, Available Days, Operating Days, Fleet Utilization
may not be comparable to those reported by other companies.
APPENDIX A
CASTOR MARITIME
INC.Unaudited Interim Condensed Consolidated
Statements of Comprehensive Income(Expressed in
U.S. Dollars—except for number of share data)
(In U.S. dollars except for
number of share data) |
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
REVENUES |
|
|
|
|
|
|
|
|
|
Total vessel revenues |
$ |
25,278,111 |
|
$ |
41,718,547 |
|
|
$ |
49,747,081 |
|
$ |
79,529,412 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
Voyage expenses (including
commissions to related party) |
|
(1,421,455 |
) |
|
(395,112 |
) |
|
|
(2,698,540 |
) |
|
(1,384,566 |
) |
Vessel operating expenses |
|
(10,408,844 |
) |
|
(10,787,035 |
) |
|
|
(21,676,527 |
) |
|
(20,914,440 |
) |
Management fees - related parties |
|
(1,784,325 |
) |
|
(1,547,000 |
) |
|
|
(3,615,825 |
) |
|
(3,077,000 |
) |
Depreciation and amortization |
|
(5,489,084 |
) |
|
(4,329,965 |
) |
|
|
(11,301,547 |
) |
|
(8,602,774 |
) |
General and administrative
expenses (including related party fees) |
|
(1,670,412 |
) |
|
(1,139,595 |
) |
|
|
(2,805,076 |
) |
|
(2,061,302 |
) |
Gain on sale of vessel |
|
3,128,568 |
|
|
— |
|
|
|
3,128,568 |
|
|
— |
|
Operating income |
$ |
7,632,559 |
|
$ |
23,519,840 |
|
|
$ |
10,778,134 |
|
$ |
43,489,330 |
|
Interest and finance costs,
net (including related party interest costs) (1) |
|
(2,388,617 |
) |
|
(1,534,781 |
) |
|
|
(4,677,732 |
) |
|
(2,959,190 |
) |
Other income / (expenses),
net |
|
2,985,122 |
|
|
80,204 |
|
|
|
(4,358,470 |
) |
|
78,916 |
|
Income taxes |
|
(42,273 |
) |
|
(89,481 |
) |
|
|
(65,179 |
) |
|
(176,562 |
) |
Net income and comprehensive income fromcontinuing
operations, net of taxes |
$ |
8,186,791 |
|
$ |
21,975,782 |
|
|
$ |
1,676,753 |
|
$ |
40,432,494 |
|
Net income and
comprehensive income fromdiscontinued operations,
net of taxes |
$ |
— |
|
|
5,777,714 |
|
|
$ |
17,339,332 |
|
$ |
7,297,290 |
|
Net income and comprehensive income |
$ |
8,186,791 |
|
|
27,753,496 |
|
|
$ |
19,016,085 |
|
$ |
47,729,784 |
|
Earnings per common
share, basic and diluted,continuing
operations |
$ |
0.09 |
|
$ |
0.23 |
|
|
$ |
0.02 |
|
$ |
0.43 |
|
Earnings per common
share, basic and diluted,discontinued
operations |
$ |
— |
|
$ |
0.06 |
|
|
$ |
0.18 |
|
$ |
0.08 |
|
Earnings per common
share, basic and diluted,total |
$ |
0.09 |
|
$ |
0.29 |
|
|
$ |
0.20 |
|
$ |
0.50 |
|
Weighted average number of
common shares outstanding, basic and diluted: |
|
94,957,401 |
|
|
94,610,088 |
|
|
|
94,784,704 |
|
|
94,610,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes interest and finance costs and interest
income, if any.
CASTOR MARITIME INC.Unaudited Condensed
Consolidated Balance
Sheets(Expressed in U.S. Dollars—except for number
of share data)
|
|
June 30,2023 |
|
December 31,2022 |
ASSETS |
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
28,574,177 |
|
$ |
100,593,557 |
Restricted cash |
|
2,445,360 |
|
|
1,684,269 |
Due from related parties |
|
5,458,734 |
|
|
2,437,354 |
Assets held for sale |
|
23,048,646 |
|
|
— |
Other current assets |
|
71,807,047 |
|
|
6,762,778 |
Current assets of discontinued
operations |
|
— |
|
|
54,763,308 |
Total current assets |
|
131,333,964 |
|
|
166,241,266 |
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
Vessels, net |
|
302,550,388 |
|
|
343,408,466 |
Restricted cash |
|
7,295,000 |
|
|
7,550,000 |
Due from related parties |
|
3,044,495 |
|
|
3,514,098 |
Investment in related
party |
|
117,521,579 |
|
|
— |
Other non-currents assets |
|
6,568,582 |
|
|
9,491,322 |
Non-Current assets of
discontinued operations |
|
— |
|
|
102,715,796 |
Total non-current
assets |
|
436,980,044 |
|
|
466,679,682 |
Total assets |
|
568,314,008 |
|
|
632,920,948 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt, net |
|
20,428,579 |
|
|
29,170,815 |
Debt related to assets held
for sale, net |
|
10,622,652 |
|
|
— |
Other current liabilities |
|
8,997,789 |
|
|
15,671,903 |
Current liabilities of
discontinued operations |
|
— |
|
|
6,519,051 |
Total current liabilities |
|
40,049,020 |
|
|
51,361,769 |
NON-CURRENT
LIABILITIES: |
|
|
|
+ |
Long-term debt, net |
|
85,013,187 |
|
|
109,600,947 |
|
|
|
|
|
|
Non-Current liabilities of
discontinued operations |
|
— |
|
|
10,463,172 |
Total non-current
liabilities |
|
85,013,187 |
|
|
120,064,119 |
Total liabilities |
|
125,062,207 |
|
|
171,425,888 |
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 94,610,088 and 96,489,976
issued and outstanding as of December 31, 2022, and June 30, 2023,
respectively |
|
96,490 |
|
|
94,610 |
Due from shareholders |
|
(38,475 |
) |
|
— |
Series B Preferred Shares-
12,000 shares issued and outstanding as of June 30, 2023, and
December 31, 2022 |
|
12 |
|
|
12 |
Additional paid-in
capital |
|
266,435,404 |
|
|
303,658,153 |
Retained Earnings |
|
176,758,370 |
|
|
157,742,285 |
Total shareholders’ equity |
|
443,251,801 |
|
|
461,495,060 |
Total liabilities and shareholders’ equity |
$ |
568,314,008 |
|
$ |
632,920,948 |
|
|
|
|
|
|
CASTOR MARITIME
INC.Unaudited Interim Condensed Consolidated
Statements of Cash Flows
(Expressed in U.S.
Dollars) |
Six months EndedJune 30, |
|
|
2023 |
|
2022 |
Cash Flows provided by
Operating Activities ofcontinuing
operations: |
|
|
|
|
Net income |
$ |
19,016,085 |
|
$ |
47,729,784 |
|
Less:
Net income from discontinued operations, net of taxes |
|
17,339,332 |
|
|
7,297,290 |
|
Net
income from continuing operations, net of taxes |
|
1,676,753 |
|
|
40,432,494 |
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by Operating Activities: |
|
|
|
|
Depreciation and
amortization |
|
11,301,547 |
|
|
8,602,774 |
|
Amortization of deferred
finance charges |
|
423,855 |
|
|
373,239 |
|
Amortization of fair value of
acquired time charters |
|
1,429,137 |
|
|
— |
|
Gain on sale of vessel |
|
(3,128,568 |
) |
|
— |
|
Realized gain on sale of
equity securities |
|
(2,636 |
) |
|
— |
|
Unrealized loss on equity
securities |
|
5,107,427 |
|
|
— |
|
Dividend income on equity
securities |
|
(366,002 |
) |
|
— |
|
Dividend income from related
party |
|
(451,111 |
) |
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
Accounts receivable trade,
net |
|
1,151,337 |
|
|
2,619,792 |
|
Inventories |
|
(149,269 |
) |
|
(617,996 |
) |
Due from/to related
parties |
|
(2,524,174 |
) |
|
(1,960,253 |
) |
Prepaid expenses and other
assets |
|
1,029,338 |
|
|
427,899 |
|
Other deferred charges |
|
51,138 |
|
|
165,899 |
|
Accounts payable |
|
(3,819,388 |
) |
|
2,242,854 |
|
Accrued liabilities |
|
(793,036 |
) |
|
14,582 |
|
Deferred revenue |
|
(1,093,999 |
) |
|
(792,983 |
) |
Dry-dock costs paid |
|
(1,296,552 |
) |
|
(264,053 |
) |
Net Cash provided by
Operating Activities from continuing operations |
|
8,545,797 |
|
|
51,244,248 |
|
|
|
|
|
|
Cash flow (used in)
Investing Activities of continuing operations: |
|
|
|
|
Vessel acquisitions (including
time charters acquired) and other vessel improvements |
|
(204,763 |
) |
|
(23,043,438 |
) |
Purchase of equity
securities |
|
(72,211,450 |
) |
|
— |
|
Dividends received on equity
securities |
|
366,002 |
|
|
— |
|
Dividends received from
related parties |
|
151,667 |
|
|
— |
|
Proceeds from sale of equity
securities |
|
258,999 |
|
|
— |
|
Net proceeds from sale of
vessel |
|
11,349,705 |
|
|
— |
|
Net cash used in
Investing Activities from continuing operations |
|
(60,289,840 |
) |
|
(23,043,438 |
) |
|
|
|
|
|
Cash flows (used in)/
provided by Financing Activities of continuing
operations: |
|
|
|
|
Gross proceeds from Issuance
of common shares |
|
785,804 |
|
|
— |
|
Common shares issuance
expenses |
|
(65,716 |
) |
|
(65,797 |
) |
Proceeds from long-term
debt |
|
— |
|
|
55,000,000 |
|
Repayment of long-term
debt |
|
(23,131,200 |
) |
|
(10,354,000 |
) |
Payment of deferred financing
costs |
|
(25,178 |
) |
|
(704,558 |
) |
Proceeds received from Toro
related to Spin-Off |
|
2,667,044 |
|
|
— |
|
Net cash (used in)/
provided by Financing Activities from continuing
operations |
|
(19,769,246 |
) |
|
43,875,645 |
|
|
|
|
|
|
Cash flows of discontinued operations: |
|
|
|
|
Net cash
provided by Operating Activities from discontinued operations |
|
20,409,041 |
|
|
1,580,903 |
|
Net cash
used in Investing Activities from discontinued operations |
|
(153,861 |
) |
|
(62,383 |
) |
Net cash
used in Financing Activities from discontinued operations |
|
(62,734,774 |
) |
|
(1,700,000 |
) |
Net cash used in from discontinued operations |
|
(42,479,594 |
) |
|
(181,480 |
) |
|
|
|
|
|
Net
(decrease)/increase in cash, cash equivalents, and restricted
cash |
|
(113,992,883 |
) |
|
71,894,975 |
|
Cash, cash equivalents
and restricted cash at the beginning of the period |
|
152,307,420 |
|
|
43,386,468 |
|
Cash, cash equivalents
and restricted cash at the end of the period |
$ |
38,314,537 |
|
$ |
115,281,443 |
|
|
|
|
|
|
|
|
APPENDIX B
Non-GAAP Financial
Information
Daily Time Charter (“TCE”)
Rate. The Daily Time Charter Equivalent Rate (“Daily TCE
Rate”) is a measure of the average daily revenue performance of a
vessel. The Daily TCE Rate is not a measure of financial
performance under U.S. GAAP (non-GAAP measure) and should not be
considered as an alternative to any measure of financial
performance presented in accordance with U.S. GAAP. We calculate
Daily TCE Rate by dividing total revenues (time charter and/or
voyage charter revenues, and/or pool revenues, net of charterers’
commissions), less voyage expenses, by the number of Available Days
during that period. Under a time charter, the charterer pays
substantially all the vessel voyage related expenses. However, we
may incur voyage related expenses when positioning or repositioning
vessels before or after the period of a time or other charter,
during periods of commercial waiting time or while off-hire during
dry-docking or due to other unforeseen circumstances. Under voyage
charters, the majority of voyage expenses are generally borne by us
whereas for vessels in a pool, such expenses are borne by the pool
operator. The Daily TCE Rate is a standard shipping industry
performance measure used primarily to compare period-to-period
changes in a company’s performance and, management believes that
the Daily TCE Rate provides meaningful information to our investors
since it compares daily net earnings generated by our vessels
irrespective of the mix of charter types (i.e., time charter,
voyage charter, or other) under which our vessels are employed
between the periods while it further assists our management in
making decisions regarding the deployment and use of our vessels
and in evaluating our financial performance. Our calculation of the
Daily TCE Rates may not be comparable to that reported by other
companies.
The following table reconciles the calculation
of the Daily TCE Rate for our dry bulk and containership fleet
(continuing operations) to Total vessel revenues (from continuing
operations) for the periods presented (amounts in U.S. dollars,
except for Available Days):
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(In U.S. dollars, except for
Available Days) |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Total vessel revenues |
$ |
25,278,111 |
|
$ |
41,718,547 |
|
|
$ |
49,747,081 |
|
$ |
79,529,412 |
|
Voyage expenses -including
commissions from related party |
|
(1,421,455 |
) |
|
(395,112 |
) |
|
|
(2,698,540 |
) |
|
(1,384,566 |
) |
TCE revenues |
$ |
23,856,656 |
|
$ |
41,323,435 |
|
|
$ |
47,048,541 |
|
$ |
78,144,846 |
|
Available Days |
|
1,904 |
|
|
1,786 |
|
|
|
3,884 |
|
|
3,582 |
|
Daily TCE Rate |
$ |
12,530 |
|
$ |
23,137 |
|
|
$ |
12,113 |
|
$ |
21,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA. EBITDA and Adjusted
EBITDA are not measures of financial performance under U.S. GAAP,
do not represent and should not be considered as an alternative to
net income, operating income, cash flow from operating activities
or any other measure of financial performance presented in
accordance with U.S. GAAP. We define EBITDA as earnings before
interest and finance costs (if any), net of interest income, taxes
(when incurred), depreciation and amortization of deferred
dry-docking costs. Adjusted EBITDA represents EBITDA adjusted to
exclude unrealized gain/loss on equity securities, which the
Company believes are not indicative of the ongoing performance of
its core operations. EBITDA and Adjusted EBITDA are used as
supplemental financial measure by management and external users of
financial statements to assess our operating performance. We
believe that EBITDA and Adjusted EBITDA assists our management by
providing useful information that increases the comparability of
our operating performance from period to period and against the
operating performance of other companies in our industry that
provide EBITDA information. This increased comparability is
achieved by excluding the potentially disparate effects between
periods or companies of interest, other financial items,
depreciation and amortization and taxes for EBITDA, and further
excluding unrealized gains/ loss on securities for Adjusted EBITDA,
which items are affected by various and possibly changing financing
methods, capital structure and historical cost basis and which
items may significantly affect net income between periods. We
believe that including EBITDA and Adjusted EBITDA as measures of
operating performance benefits investors in (a) selecting between
investing in us and other investment alternatives and (b)
monitoring our ongoing financial and operational strength. EBITDA
and Adjusted EBITDA as presented below may not be comparable to
similarly titled measures of other companies.
The following table reconciles EBITDA and
Adjusted EBITDA to Net income from continuing operations, the most
directly comparable U.S. GAAP financial measure, for the periods
presented:
|
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
(In U.S. dollars) |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Net Income from continuing operations, net of
taxes |
$ |
8,186,791 |
|
$ |
21,975,782 |
|
$ |
1,676,753 |
$ |
40,432,494 |
Depreciation and
amortization |
|
5,489,084 |
|
|
4,329,965 |
|
|
11,301,547 |
|
8,602,774 |
Interest and finance costs,
net (including related party interest costs) (1) |
|
2,388,617 |
|
|
1,534,781 |
|
|
4,677,732 |
|
2,959,190 |
US source income taxes |
|
42,273 |
|
|
89,481 |
|
|
65,179 |
|
176,562 |
EBITDA |
$ |
16,106,765 |
|
$ |
27,930,009 |
|
$ |
17,721,211 |
$ |
52,171,020 |
Unrealized (gain) / loss on equity securities |
|
(2,588,161 |
) |
|
— |
|
|
5,107,427 |
|
— |
Adjusted EBITDA |
$ |
13,518,604 |
|
$ |
27,930,009 |
|
$ |
22,828,638 |
$ |
52,171,020 |
(1) Includes interest and finance costs and
interest income, if any.
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may
constitute forward-looking statements. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended (the “Securities Act”)
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts. We are including
this cautionary statement in connection with this safe harbor
legislation. The words “believe”, “anticipate”, “intend”,
“estimate”, “forecast”, “project”, “plan”, “potential”, “will”,
“may”, “should”, “expect”, “pending” and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management’s examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these forward-looking statements, including these
expectations, beliefs or projections. In addition to these
important factors, other important factors that, in our view, could
cause actual results to differ materially from those discussed in
the forward‐looking statements include the effects of the spin-off
of our tanker business, our business strategy, shipping markets
conditions and trends, the rapid growth of our fleet, our
relationships with our current and future service providers and
customers, our ability to borrow under existing or future debt
agreements or to refinance our debt on favorable terms and our
ability to comply with the covenants contained therein, our
continued ability to enter into time or voyage charters with
existing and new customers and to re-charter our vessels upon the
expiry of the existing charters, changes in our operating and
capitalized expenses, our ability to fund future capital
expenditures and investments in the acquisition and refurbishment
of our vessels, instances of off-hire, future sales of our
securities in the public market and our ability to maintain
compliance with applicable listing standards, volatility in our
share price, potential conflicts of interest involving members of
our board of directors, senior management and certain of our
service providers that are related parties, general domestic and
international political conditions or events (including “trade
wars”, global public health threats and major outbreaks of
disease), changes in seaborne and other transportation, changes in
governmental rules and regulations or actions taken by regulatory
authorities, and the impact of adverse weather and natural
disasters. The information set forth herein speaks only as of the
date hereof, and we disclaim any intention or obligation to update
any forward looking statements as a result of developments
occurring after the date of this communication, except to the
extent required by applicable law. New factors emerge from time to
time, and it is not possible for us to predict all or any of these
factors. Further, we cannot assess the impact of each such factor
on our business or the extent to which any factor, or combination
of factors, may cause actual results to be materially different
from those contained in any forward-looking statement. Please see
our filings with the Securities and Exchange Commission for a more
complete discussion of these foregoing and other risks and
uncertainties. These factors and the other risk factors described
in this press release are not necessarily all of the important
factors that could cause actual results or developments to differ
materially from those expressed in any of our forward-looking
statements. Given these uncertainties, prospective investors are
cautioned not to place undue reliance on such forward-looking
statements.
CONTACT DETAILS For further
information please contact:
Petros PanagiotidisChief Executive Officer &
Chief Financial Officer Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital LinkEmail:
castormaritime@capitallink.com
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