ATHENS, Greece, Aug. 17, 2015 /PRNewswire/ -- Box Ships Inc.
(NYSE: TEU) (the "Company"), a global shipping company specializing
in the seaborne transportation of containers, announced today its
results for the second quarter and six months ended June 30, 2015.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
Financial
Highlights
(Expressed in
thousands of U.S. Dollars, except per share data)
|
2014
|
2015
|
2014
|
2015
|
|
Time charter
revenues
|
$12,878
|
$11,600
|
$27,381
|
$23,169
|
|
Amortization of
above/below market time charters
|
1,501
|
966
|
2,442
|
2,249
|
|
Time charter
revenues, adjusted1
|
$14,379
|
$12,566
|
$29,823
|
$25,418
|
|
|
|
|
|
|
Net Income /
(Loss)
|
$675
|
($1,385)
|
($844)
|
($1,669)
|
|
Adjusted Net
Income2
|
$2,334
|
$0
|
$2,636
|
$1,542
|
|
|
|
|
|
|
EBITDA2
|
$6,228
|
$3,761
|
$10,350
|
$8,639
|
|
Adjusted
EBITDA2
|
$7,887
|
$5,146
|
$13,830
|
$11,850
|
|
|
|
|
|
|
Earnings / (Loss) per
common share (EPS), basic and diluted
|
$0.01
|
($0.06)
|
($0.07)
|
($0.09)
|
|
Adjusted Earnings /
(Loss) per common share, basic and diluted2
|
$0.06
|
($0.02)
|
$0.06
|
$0.02
|
|
|
|
1
|
Time charter
revenues, adjusted, is not a recognized measurement under generally
accepted accounting principles in the United States of America
("U.S. GAAP" or "GAAP"). We believe that the presentation of Time
charter revenues, adjusted is useful to investors because it
presents the charter revenues recognized in the relevant period
based on the contracted charter rates, excluding the amortization
of above/below market time charters attached to vessels acquired.
Please refer to the definition and reconciliation of this
measurement to the most directly comparable financial measure
calculated and presented in accordance with U.S. GAAP at the back
of this release.
|
|
|
|
2
|
EBITDA, Adjusted
EBITDA, Adjusted Net Income / (Loss) and Adjusted Earnings / (Loss)
per common share ("Adjusted EPS") are not recognized measurements
under GAAP. Please refer to the definitions and reconciliation of
these measurements to the most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP at
the back of this release.
|
Mr. Michael Bodouroglou,
Chairman, President, Chief Executive Officer and Interim Chief
Financial Officer of Box Ships Inc., commented:
"During the second quarter of 2015, we reported net loss of
$1.4 million mainly due to the
dry-dockings of Box Hong
Kong and Box China. Although these dry-dockings were
due later in 2015, we decided to undergo the dry-dockings
immediately after the redelivery of the vessels from their previous
charter, which has enabled us to successfully re-charter the
vessels to MSC for a period of twelve to sixteen months
uninterruptedly.
In addition, as previously announced, in June 2015 we extended the loan facility that is
secured by the vessels Box Hong
Kong and Box China, which reduces the vessels'
break-even levels and demonstrates the support of our lenders.
Finally, we fixed the Box Trader at a gross daily rate of
$12,400 on a short-term period and
extended the CMA CGM Kingfish for a period of five to eight
months at a gross daily rate of $15,500, increased by 46% and 63%, respectively,
compared to their previous charters, which illustrates the
continued market improvement."
Results of Operations
Three months ended June 30,
2015 compared to three months ended June 30, 2014
During the second quarter of 2015, we operated an average of 9
vessels. Our Net Loss during the second quarter of 2015 was
$1.4 million, whereas our Adjusted
Net Income during the quarter was nil, resulting in basic and
diluted loss per share of $0.06 and
basic and diluted adjusted loss per share of $0.02. EBITDA and Adjusted EBITDA for the second
quarter of 2015 were $3.8 million and
$5.1 million, respectively.
During the second quarter of 2014, we operated an average of 9
vessels. Our Net Income and Adjusted Net Income during the second
quarter of 2014 was $0.7 million and
$2.3 million, respectively, resulting
in basic and diluted earnings per share of $0.01 and basic and diluted adjusted earnings per
share of $0.06. EBITDA and Adjusted
EBITDA for the second quarter of 2014 was $6.2 million and $7.9
million, respectively.
Net revenues
Net revenues represent charter hire earned, net of commissions.
During the second quarter of 2015 and 2014, our vessels operated a
total of 740 and 819 days, respectively, out of a total of 819
calendar days in both periods. During the second quarter of 2015,
we had a total of 20 unscheduled off-hire days, mainly related to
19 idle days of Box Queen, and 59 scheduled off-hire days
related to the dry-dockings of Box Hong Kong and Box China. Currently, all vessels in our fleet
are employed under fixed rate time charters, having an average
weighted remaining charter duration of 6 months (weighted by
aggregate contracted charter hire). The Company reported net
revenues for the second quarter of 2015 of $11.2 million, a decrease of 10% compared to
$12.5 million in the second quarter
of 2014. The decrease is mainly due to the re-chartering of Box
Emma in March 2015 at a daily
rate of $13,500, compared to the
daily rate of $28,500 the vessel was
earning during the second quarter of 2014, the redelivery of Box
Hong Kong and Box
China from their charterer on
May 26, 2015 and June 6, 2015, respectively, the scheduled
off-hire days related to the dry-dockings of Box
Hong Kong and Box
China and the idle days of
Box Queen during the second quarter of 2015. The decrease in
revenues resulting from the lower rate and the increase in off-hire
days was partially offset by the higher re-chartering rates of
other vessels. More specifically, during the second quarter of
2015, the Box Voyager earned a daily rate of $10,600, compared to $7,350 per day that the vessel was earning during
the second quarter of 2014; the Box Trader earned a daily
rate of $8,500, compared to
$8,000 per day that the vessel was
earning during the second quarter of 2014; each of the CMA CGM
Kingfish and CMA CGM Marlin earned a daily rate of
$9,500, compared to $7,000 per day that each of these vessels was
earning during the second quarter of 2014; and the Box Queen
earned an average daily rate of approximately $13,115, compared to $6,100 per day that the vessel was earning during
the second quarter of 2014.
Our net revenues are also net of the amortization of above/below
market time charters, which decreased our revenues and net income
for the second quarter of 2015 and 2014 by $1.0 million and $1.5
million, respectively, or $0.03 and $0.05 per
common share, respectively. Our average time charter equivalent
rate, or TCE rate, for the second quarter of 2015 was $14,697 per vessel per day, which was 2% below
our average TCE rate of $15,010 per
vessel per day during the second quarter of 2014, mainly due to the
reasons outlined above. Our adjusted TCE rate was $16,002 per vessel per day in the second quarter
of 2015, 5% lower than our adjusted TCE of $16,843 for the second quarter of 2014. TCE rate
is not a recognized measurement under GAAP. Please see the table at
the back of this release for a reconciliation of TCE rates to time
charter revenues, the most directly comparable financial measure
calculated and presented in accordance with U.S. GAAP.
Voyage expenses
Voyage expenses for the second quarter of 2015 and 2014 amounted
to $0.3 million and $0.2 million, respectively. Voyage expenses for
the second quarter of 2015 primarily relate to bunkers consumed by
the Box Hong Kong and
Box China travelling
to and from the dry-dockings of $0.2
million and war risk insurance costs of $0.1 million, whereas voyage expenses for the
second quarter of 2014 related mainly to war risk insurance
costs.
Vessels operating expenses
Vessels operating expenses including the amortization of other
intangible assets for the second quarter of 2015 and 2014 amounted
to $4.0 million and $4.5 million, respectively, or $3.8 million and $4.2
million, respectively, on an adjusted basis to exclude the
amortization of other intangible assets. On average, our vessels'
operating expenses for the second quarter of 2015 amounted to
$4,938 per vessel per day, or
$4,683 per vessel per day on an
adjusted basis, compared to $5,444
per vessel per day, in the second quarter of 2014, or $5,123 per vessel per day on an adjusted basis.
The decrease is a result of continuing cost control efforts. The
amortization of other intangible assets for the second quarter of
2015 and 2014 amounted to $0.2
million and $0.3 million,
respectively.
Dry-docking expenses
During the second quarter of 2015, two of our vessels, the
Box Hong Kong and
the Box China, underwent
their dry-dockings, which resulted in 59 off-hire days and expenses
amounting to $1.3 million. There were
no dry-dockings in the second quarter of 2014.
Management fees charged by a related party
Management fees charged by Allseas Marine S.A. (our "Manager" or
"Allseas") for the second quarter of 2015 and 2014 were
$0.6 million and $0.7 million, or $718 (€648.93) per vessel per day, and
$886 (€646.99) per vessel per day,
respectively. Management fees charged by a related party represent
fees for management and technical services in accordance with our
management agreements and are adjusted annually in accordance with
the official Eurozone inflation rate. This fee is charged on a
daily basis per vessel and is affected by the number of vessels in
our fleet, the number of calendar days during the period, the
official Eurozone inflation rate and the U.S. Dollar/Euro exchange
rate at the beginning of each month.
Depreciation
Depreciation for our fleet for each of the second quarters of
2015 and 2014 was $3.8 million.
General and administrative expenses
General and administrative ("G&A") expenses for the second
quarter of 2015 and 2014 amounted to $1.1
million and $1.5 million, or
$1,353 and $1,870 per vessel per day, respectively. The
decrease in G&A expenses is mainly due to the decreased
share-based compensation, which amounted to $0.2 million for the second quarter of 2015
compared to $0.5 million in the same
period of 2014.
Interest and finance costs
Interest and finance costs amounted to $1.4 million and $1.8
million for the second quarter of 2015 and 2014,
respectively. This decrease in interest and finance costs is due to
the decrease in our average borrowings outstanding period over
period.
|
UNAUDITED
CONSOLIDATED CONDENSED CASH FLOW INFORMATION
|
|
(Expressed in
thousands of U.S. Dollars)
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2014
|
|
2015
|
|
Net cash from
Operating Activities
|
$
|
9,284
|
$
|
7,332
|
|
Net cash used in
Financing Activities
|
|
(1,884)
|
|
(7,412)
|
|
Net increase /
(decrease) in cash and cash equivalents
|
$
|
7,400
|
$
|
(80)
|
Net cash from Operating Activities
Net cash from Operating Activities for the six months ended
June 30, 2015 was $7.3 million. Our vessels generated positive cash
flows from revenues, net of commissions, of $23.3 million, while we paid $16.0 million for expenses, of which $2.6 million relates to the payment of interest
on our bank loans.
Net cash from Operating Activities for the six months ended
June 30, 2014 was $9.3 million. Our vessels generated positive cash
flows from revenues, net of commissions, of $29.8 million, while we paid $20.5 million for expenses, of which $3.1 million relates to the payment of interest
on our bank loans.
Net cash used in Financing Activities
Net cash used in Financing Activities for the six months ended
June 30, 2015, was $7.4 million. During the six months ended
June 30, 2015, we repaid $6.4 million of our debt and made cash payments
to our preferred shareholders of $1.0
million.
Net cash used in Financing Activities for the six months ended
June 30, 2014, was $1.9 million. On April 15,
2014, we completed the public offering and concurrent
private placement of 5,500,000 Units, each consisting of one common
share and one warrant to purchase 0.40 common shares (the "Units")
at a public offering price of $2.05
per unit, resulting in net proceeds of $10.6
million in the aggregate, net of underwriting discounts,
commissions and other offering costs of $0.7
million in the aggregate. During the six months ended
June 30, 2014, we repaid $11.4 million of our debt, paid financing costs
of $0.1 million and made cash
payments to our preferred shareholders of $1.0 million.
Liquidity:
As of June 30, 2015, our cash and
restricted cash (current and non-current) amounted to $14.5 million in aggregate, of which $8.0 million is considered restricted for minimum
liquidity purposes under our loan agreements. As of June 30, 2015, we had total outstanding
indebtedness of $128.6 million, of
which $12.1 million is scheduled to
be repaid in the forthcoming 12-month period, of which $3.2 million has been repaid as of the date of
this release. Furthermore, as of June 30,
2015, we were in compliance with the covenants contained in
our loan agreements, as amended to give effect to waivers that we
were granted during 2014 and 2015. As of June 30, 2015, had the waivers not been granted,
we would not have been in compliance with certain of our financial
covenants and security cover ratios contained in the loan
agreements. The waivers are due to expire on June 29, 2016, and in accordance with U.S. GAAP,
unless the waivers are extended for a period of more than one year
after the balance sheet date or the loans are refinanced prior to
the issuance of the consolidated financial statements, our total
debt will be required to be presented as current even though we
were in compliance as of June 30,
2015.
Finally, we have no borrowing capacity under our existing loan
facilities and no capital commitments. We anticipate that our
current financial resources, together with cash generated from
operations, will be sufficient to fund the operations of our
current fleet, including our working capital requirements, for the
next 12 months, assuming that the debt will not be accelerated by
our lenders.
Preferred Stock Payments:
On July 1, 2015, we made a cash
payment of $0.5 million with respect
to our Series C Preferred Shares, for the period from April 1, 2015 through June
30, 2015. As of June 30, 2015,
916,333 Series C Preferred Shares were outstanding.
Cash payments on our Series C Preferred Shares accrue
cumulatively at a rate of 9.00% per annum per $25.00 stated liquidation preference per Series C
Preferred Share and are payable, when, as and if declared by the
Board of Directors, on January 1,
April 1, July
1 and October 1 of each year.
Our ability to make cash payments will be subject, among other
things, to the restrictions in our loan agreements, the provisions
of Marshall Islands law and other
factors to be considered by our Board of Directors.
Chartering Update and Strategy:
In July 2015, the Box
Trader entered into a time charter with Zim Integrated Shipping
Services Ltd. ("ZIM") for a period of 50 to 115 days, which
commenced on August 3, 2015, at a
daily gross charter rate of $12,400.
In July 2015, the CMA CGM
Kingfish extended its time charter with CMA CGM for a
further period until January 2016 to
April 2016, which commenced on
August 15, 2015, at a daily gross
charter rate of $15,500.
Pursuant to our chartering strategy, we focus on short- to
medium-term time charters with staggered maturities, which provide
us with the benefit of stable cash flows from a diversified
portfolio of charterers, while preserving the flexibility to
capitalize on potentially rising rates when the current time
charters expire. We may also, under certain circumstances,
opportunistically employ our vessels on the spot market. Based on
the earliest redelivery dates, the Company has secured under time
charter contracts 76% and 18% of its fleet capacity for the
remainder of 2015 and 2016, respectively. For future updates on the
employment of our vessels, please visit the employment section of
our website at www.box-ships.com/fleet-employment.php. The
information contained on the Company's website does not constitute
part of this press release.
Fleet List:
The following table provides additional information about our
fleet as of August 17, 2015:
|
Vessel
|
Year
Built
|
TEU
|
Charterer
|
Daily Gross
Charter Rate (1)
|
Charter Expiration
(2)
|
Notes
|
|
Box
Voyager
|
2010
|
3,426
|
CNC
|
$10,600
|
March 2016
|
3, 11
|
|
Box
Trader
|
2010
|
3,426
|
ZIM
|
$12,400
|
September
2015
|
4
|
|
CMA CGM
Kingfish
|
2007
|
5,095
|
CMA CGM
|
$15,500
|
January
2016
|
5
|
|
CMA CGM
Marlin
|
2007
|
5,095
|
CMA CGM
|
$9,500
|
September
2015
|
6
|
|
Box
Queen
|
2006
|
4,546
|
CMA CGM
|
$13,300
|
October
2015
|
7
|
|
Maule
|
2010
|
6,589
|
Hapag
Lloyd
|
$38,000
|
April 2016
|
8, 11
|
|
Box
Emma
|
2004
|
5,060
|
CMA CGM
|
$13,500
|
February
2016
|
9, 11
|
|
Box Hong
Kong
|
1995
|
5,344
|
MSC
|
$13,000
|
June 2016
|
10
|
|
Box
China
|
1996
|
5,344
|
MSC
|
$13,000
|
July 2016
|
10
|
|
Total
|
|
43,925
|
|
|
|
|
|
Notes:
|
|
1)
|
Daily gross charter
rates do not reflect commissions payable by us to third party
chartering brokers and Seacommercial, totaling 6.5% for Box
Trader, 5% for Box Hong Kong and Box China, 4.75%
for Box Voyager, CMA CGM Kingfish, CMA CGM Marlin,
Box Emma and Box Queen, and 2.50% for Maule,
including, in each case, 1.25% to Seacommercial.
|
|
2)
|
Based on the earliest
redelivery date.
|
|
3)
|
The employment was
extended for a period of twelve months and commenced on March 31,
2015.
|
|
4)
|
The employment is for
a period of 50 to 115 days and commenced in August 2015.
|
|
5)
|
The employment was
extended for a period of five to eight months and commenced on
August 15, 2015. The daily gross charter rate shall be $1 until
August 20, 2015 and will be increased to $15,500 for the remaining
period.
|
|
6)
|
The vessel is
expected to be redelivered on or about September 21,
2015.
|
|
7)
|
The employment was
extended until October 2015 and commenced in June 2015.
|
|
8)
|
Effective April 10,
2015, all rights and obligations under the charter were novated to
Hapag Lloyd AG from CSAV. All other terms remain unchanged. The
charterer has the option to purchase the vessel upon expiration of
the charter, provided that the option is exercised at least six
months prior to the expiration of the term of the charter, for a
purchase price of $57.0 million, less a 0.5% purchase commission
payable to parties unaffiliated to us.
|
|
9)
|
The employment is for
a period of twelve months and commenced in March 2015.
|
|
10)
|
The employment is for
a period of twelve to sixteen months and commenced end of June 2015
/ beginning of July 2015.
|
|
11)
|
The charterer has the
option to increase or decrease the term of the charter by 30
days.
|
Conference Call and Webcast details:
The Company's management will host a conference call to discuss
its results for the second quarter of 2015, on August 18, 2015 at 9:00 am
ET.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: +1-888-348-2672
(USA) or +1-412-902-4232
(international).
A replay of the conference call will be available for seven days
and can be accessed by dialing +1-877-870-5176 (domestic) and
+1-858-384-5517 (international) and using passcode 10070833.
There will also be a simultaneous live webcast over the
Internet, through the Company's website (www.box-ships.com).
Participants in the live webcast should register on the website
approximately 15 minutes prior to the start of the webcast.
About Box Ships Inc.:
Box Ships Inc. is an Athens,
Greece-based international shipping company specializing in
the transportation of containers. The Company's current fleet
consists of nine containerships with a total carrying capacity of
43,925 TEU and a TEU weighted average age of 10.6 years. The
Company's common shares and Series C Preferred Shares trade on the
New York Stock Exchange under the symbols "TEU" and "TEUPRC",
respectively.
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements.
The forward-looking statements in this press release are based
upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections.
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
strength of world economies and currencies, general market
conditions, including fluctuations in charter rates and vessel
values, changes in demand for container shipping capacity, changes
in our operating expenses, including bunker prices, dry-docking and
insurance costs, the market for our vessels, availability of
financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other factors. Please see
our filings with the Securities and Exchange Commission for a more
complete discussion of these and other risks and uncertainties.
Contacts:
Box Ships Inc.
Tel. +30 (210)
8914600
E-mail: ir@box-ships.com
Investor Relations / Media
Allen
& Caron Inc.
Michael
Mason (Investors)
Tel. +1 (212)
691-8087
E-mail: michaelm@allencaron.com
Len Hall
(Media)
Tel. +1 (949)
474-4300
E-mail: len@allencaron.com
- Tables Follow –
|
SUMMARY FLEET
INFORMATION
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
FLEET
DATA
|
|
Average number of
vessels (1)
|
9.00
|
9.00
|
9.00
|
9.00
|
|
Calendar days for
fleet (2)
|
819
|
819
|
1,629
|
1,629
|
|
Less:
|
|
|
|
|
|
Scheduled
off-hire
|
-
|
59
|
42
|
59
|
|
Unscheduled
off-hire
|
-
|
20
|
15
|
53
|
|
Operating days for
fleet (3)
|
819
|
740
|
1,572
|
1,517
|
|
Fleet utilization
(4)
|
100.0%
|
90.4%
|
96.5%
|
93.1%
|
|
AVERAGE DAILY
RESULTS
(Expressed in
United States Dollars)
|
|
Time charter
equivalent (5)
|
$15,010
|
$14,697
|
$16,530
|
$14,193
|
|
|
|
|
|
|
Vessel operating
expenses (6)
|
$5,444
|
$4,938
|
$5,754
|
$4,988
|
|
Management fees
charged by a related party (7)
|
$886
|
$718
|
$884
|
$731
|
|
General and
administrative expenses (8)
|
$1,870
|
$1,353
|
$1,932
|
$1,359
|
|
Total vessel
operating expenses (9)
|
$8,200
|
$7,009
|
$8,570
|
$7,078
|
|
|
|
(1)
|
Average number of
vessels is the number of vessels that constituted our fleet for the
relevant period, as measured by the sum of the number of calendar
days each vessel was a part of our fleet during the period divided
by the number of calendar days in the period.
|
|
(2)
|
Calendar days are the
total days we possessed the vessels in our fleet for the relevant
period.
|
|
(3)
|
Operating days for
the fleet are the total calendar days the vessels were in our
possession for the relevant period after subtracting off-hire days
for scheduled dry-dockings or special or intermediate surveys and
unscheduled off-hire days associated with repairs and other
operational matters. Any idle days relating to the days a vessel
remains unemployed are included in unscheduled off-hire
days.
|
|
(4)
|
Fleet utilization is
the percentage of time that our vessels were able to generate
revenues and is determined by dividing operating days by fleet
calendar days for the relevant period.
|
|
(5)
|
Time charter
equivalent ("TCE"), is a measure of the average daily revenue
performance of a vessel on a per voyage basis. Our method of
calculating TCE is determined by dividing time charter revenues,
net of commissions and voyage expenses by operating days for the
relevant time period. Voyage expenses primarily consist of extra
war risk insurance, port, canal, fuel costs and other crew costs
reimbursable by the charterers that are unique to a particular
voyage and bunkers consumed during the periods that vessels are in
between employment. TCE is a non-GAAP standard shipping industry
performance measure used primarily to compare daily earnings
generated by vessels despite changes in the mix of charter types
(i.e., spot voyage charters, time charters and bareboat charters)
under which the vessels may be employed between the periods.
|
|
(6)
|
Daily vessel
operating expenses, which includes crew costs, provisions, deck and
engine stores, lubricating oil, insurance, other than extra war
risk insurance, maintenance, repairs and amortization of
intangibles, is calculated by dividing vessel operating expenses by
fleet calendar days for the relevant time period.
|
|
(7)
|
Daily management fees
are calculated by dividing management fees charged by a related
party by fleet calendar days for the relevant time
period.
|
|
(8)
|
Daily general and
administrative expenses are calculated by dividing general and
administrative expense by fleet calendar days for the relevant time
period.
|
|
(9)
|
Total vessel
operating expenses ("TVOE") are a measurement of our total
expenses, excluding dry-docking expenses, associated with operating
our vessels. TVOE is the sum of vessel operating expenses,
management fees and general and administrative expenses. Daily TVOE
is calculated by dividing TVOE by fleet calendar days for the
relevant time period.
|
Reconciliation of U.S. GAAP Financial Information to Non-GAAP
measures
|
Time Charter
Equivalent Reconciliation
(Expressed in thousands of U.S. Dollars, except
days and daily results)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
Time Charter
Revenues
|
$12,878
|
$11,600
|
$27,381
|
$23,169
|
|
Commissions
|
(350)
|
(377)
|
(663)
|
(697)
|
|
Voyage
Expenses
|
(234)
|
(347)
|
(732)
|
(941)
|
|
Total Revenue, net
of voyage expenses
|
$12,294
|
$10,876
|
$25,986
|
$21,531
|
|
Plus: Amortization of
above/below market time charters
|
1,501
|
966
|
2,442
|
2,249
|
|
Total Revenue, net
of voyage expenses, adjusted
|
$13,795
|
$11,842
|
$28,428
|
$23,780
|
|
Total operating
days
|
819
|
740
|
1,572
|
1,517
|
|
Time Charter
Equivalent
|
$15,010
|
$14,697
|
$16,530
|
$14,193
|
|
Time Charter
Equivalent, adjusted (10)
|
$16,843
|
$16,002
|
$18,084
|
$15,676
|
|
|
|
(10)
|
Time charter
equivalent, adjusted ("TCE adjusted"), is a non-GAAP measure and is
determined by dividing time charter revenues, net of commissions,
voyage expenses and amortization of above/below market time
charters attached to the vessels acquired, by operating days for
the relevant time period. Voyage expenses primarily consist of
extra war risk insurance, port, canal, fuel costs and other crew
costs reimbursable by the charterers that are unique to a
particular voyage. We believe that the presentation of TCE adjusted
is useful to investors because it presents the TCE earned in the
relevant period based on the contracted charter rates, excluding
the amortization of above/below market time charters attached to
the vessels acquired. The Company's definition of TCE adjusted may
not be the same as that used by other companies in the shipping or
other industries.
|
|
|
|
Total Vessel
Operating Expenses, adjusted
(Expressed in thousands of
U.S. Dollars)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
Total vessel
operating expenses
|
$6,717
|
$5,740
|
$13,961
|
$11,531
|
|
Less: Amortization of
other intangible assets
|
(263)
|
(209)
|
(524)
|
(521)
|
|
Less: Share-based
compensation
|
(548)
|
(171)
|
(1,167)
|
(333)
|
|
Total vessel
operating expenses, adjusted (11)
|
$5,906
|
$5,360
|
$12,270
|
$10,677
|
|
AVERAGE DAILY
RESULTS
(Expressed in
United States Dollars, except days)
|
|
Calendar days for
fleet
|
819
|
819
|
1,629
|
1,629
|
|
Vessel operating
expenses, adjusted (12)
|
$5,123
|
$4,683
|
$5,432
|
$4,668
|
|
Management fees
charged by a related party
|
$886
|
$718
|
$884
|
$731
|
|
General and
administrative expenses, adjusted (13)
|
$1,202
|
$1,144
|
$1,216
|
$1,155
|
|
Total vessel
operating expenses, adjusted (11)
|
$7,211
|
$6,545
|
$7,532
|
$6,554
|
|
|
|
(11)
|
Total vessel
operating expenses, adjusted ("TVOE adjusted'), is a non-GAAP
measure and is the sum of vessel operating expenses, management
fees and general and administrative expenses excluding non-cash
items in relation to the amortization of other intangible assets
and share-based compensation. Daily TVOE adjusted is calculated by
dividing TVOE adjusted by fleet calendar days for the relevant time
period. We believe that the presentation of TVOE adjusted and daily
TVOE adjusted are useful to investors because they provide
additional information on the fleet operational results. The
Company's definition of TVOE adjusted and daily TVOE adjusted may
not be the same as that used by other companies in the shipping or
other industries
|
|
(12)
|
Daily vessel
operating expenses, adjusted is calculated by dividing vessel
operating expenses excluding non-cash items relating to the
amortization of other intangible assets by fleet calendar days for
the relevant time period
|
|
(13)
|
Daily general and
administrative expenses are calculated by dividing general and
administrative expenses excluding non-cash items relating to the
share-based compensation by fleet calendar days for the relevant
time period
|
|
|
|
Net Income /
(Loss) / Adjusted Net Income / (Loss)
(1)
(Expressed in thousands of U.S. Dollars)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
Net Income /
(Loss)
|
$675
|
($1,385)
|
($844)
|
($1,669)
|
|
Plus: Amortization of
intangibles
|
1,764
|
1,175
|
2,966
|
2,770
|
|
Plus: Share-based
compensation
|
548
|
171
|
1,167
|
333
|
|
Less / Plus:
Unrealized (gain) / loss on derivatives
|
-
|
(18)
|
-
|
51
|
|
Less / Plus: Fair
value change of warrants
|
(653)
|
57
|
(653)
|
57
|
|
Adjusted Net
Income
|
$2,334
|
$0
|
$2,636
|
$1,542
|
|
|
|
|
|
|
EBITDA / Adjusted
EBITDA (1)
|
|
|
|
|
|
Net Income /
(Loss)
|
$675
|
($1,385)
|
($844)
|
($1,669)
|
|
Plus: Net Interest
expense
|
1,779
|
1,372
|
3,688
|
2,802
|
|
Plus:
Depreciation
|
3,774
|
3,774
|
7,506
|
7,506
|
|
EBITDA
|
$6,228
|
$3,761
|
$10,350
|
$8,639
|
|
Plus: Amortization of
intangibles
|
1,764
|
1,175
|
2,966
|
2,770
|
|
Plus: Share-based
compensation
|
548
|
171
|
1,167
|
333
|
|
Less / Plus:
Unrealized (gain) / loss on derivatives
|
-
|
(18)
|
-
|
51
|
|
Less / Plus: Fair
value change of warrants
|
(653)
|
57
|
(653)
|
57
|
|
Adjusted
EBITDA
|
$7,887
|
$5,146
|
$13,830
|
$11,850
|
|
|
Earnings / (Loss)
per Common Share
(Expressed in
thousands of U.S. Dollars, except share and per share
data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
Net Income /
(Loss)
|
$675
|
($1,385)
|
($844)
|
($1,669)
|
|
Less: Cash payments
to Series C Preferred Shares
|
(515)
|
(515)
|
(1,031)
|
(1,031)
|
|
Less: Net Income /
Loss attributable to non-vested share awards
|
(3)
|
37
|
41
|
49
|
|
Net Income /
(Loss) available to common shareholders
|
$157
|
($1,863)
|
($1,834)
|
($2,651)
|
|
|
|
|
|
|
Weighted average
number of common shares, basic and diluted
|
29,360,273
|
30,625,215
|
27,031,845
|
30,625,215
|
|
|
|
|
|
|
Earnings / (Loss)
per common share, basic and diluted
|
$0.01
|
($0.06)
|
($0.07)
|
($0.09)
|
|
|
Adjusted Earnings
/ (Loss) per Common Share (1)
(Expressed in thousands of U.S. Dollars, except
share and per share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2014
|
2015
|
2014
|
2015
|
|
Adjusted Net
Income
|
$2,334
|
$0
|
$2,636
|
$1,542
|
|
Less: Cash payments
to Series C Preferred Shares
|
(515)
|
(515)
|
(1,031)
|
(1,031)
|
|
Less: Adjusted Net
Income attributable to non-vested share awards
|
(36)
|
10
|
(35)
|
(9)
|
|
Adjusted Net
Income / (Loss) available to common shareholders
|
$1,783
|
($505)
|
$1,570
|
$502
|
|
|
|
|
|
|
Weighted average
number of common shares, basic and diluted
|
29,360,273
|
30,625,215
|
27,031,845
|
30,625,215
|
|
|
|
|
|
|
Adjusted Earnings
/ (Loss) per common share, basic and diluted
|
$0.06
|
($0.02)
|
$0.06
|
$0.02
|
|
|
|
(1)
|
The Company considers
EBITDA to represent net income plus net interest expense and
depreciation and amortization. The Company's management uses EBITDA
as a performance measure. The Company believes that EBITDA is
useful to investors because the shipping industry is capital
intensive and may involve significant financing costs. The Company
excluded non-cash items in relation to the amortization of
intangibles, share-based compensation and unrealized gain / loss on
derivatives to derive Adjusted EBITDA because the Company believes
it provides additional information on the fleet operational results
which may be useful to investors.
|
|
|
|
The Company excluded
non-cash items in relation to the amortization of intangibles,
share-based compensation and unrealized gain / loss on derivatives
from net income / (loss) to derive to Adjusted Net Income / (Loss)
and Adjusted EPS / (Loss) per share. The Company believes that
Adjusted Net Income / (Loss) and Adjusted EPS / (Loss) per share
provide additional information on the fleet operational results
which may be useful to investors.
|
|
|
|
EBITDA, Adjusted
EBITDA, Adjusted Net Income / (Loss) and Adjusted EPS / (Loss) per
share are items not recognized by U.S. GAAP and should not be
considered as an alternative to net income / (loss), operating
income / (loss), earnings / (loss) per share or any other indicator
of a Company's operating performance required by U.S. GAAP. The
Company's definition of EBITDA, Adjusted EBITDA, Adjusted Net
Income / (Loss) and Adjusted EPS / (Loss) per share may not be the
same as that used by other companies in the shipping or other
industries.
|
|
BOX SHIPS
INC.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME /
(LOSS)
|
|
(Expressed in
thousands of U.S. Dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Time charter revenues
(1)
|
$
|
12,878
|
$
|
11,600
|
$
|
27,381
|
$
|
23,169
|
|
Commissions
|
|
(350)
|
|
(377)
|
|
(663)
|
|
(697)
|
|
Net
Revenues
|
|
12,528
|
|
11,223
|
|
26,718
|
|
22,472
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
234
|
|
347
|
|
732
|
|
941
|
|
Vessels operating
expenses (2)
|
|
4,459
|
|
4,044
|
|
9,373
|
|
8,126
|
|
Dry-docking
expenses
|
|
-
|
|
1,334
|
|
2,314
|
|
1,334
|
|
Management fees
charged by a related party
|
|
726
|
|
588
|
|
1,440
|
|
1,191
|
|
Depreciation
|
|
3,774
|
|
3,774
|
|
7,506
|
|
7,506
|
|
General and
administrative expenses (3)
|
|
1,532
|
|
1,108
|
|
3,148
|
|
2,214
|
|
Total
Expenses
|
|
10,725
|
|
11,195
|
|
24,513
|
|
21,312
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,803
|
|
28
|
|
2,205
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME /
(EXPENSES):
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
(1,779)
|
|
(1,372)
|
|
(3,688)
|
|
(2,802)
|
|
Gain / (loss) on
derivatives
|
|
-
|
|
18
|
|
-
|
|
(51)
|
|
Fair value change of
warrants
|
|
653
|
|
(57)
|
|
653
|
|
(57)
|
|
Foreign currency
(loss) / gain, net
|
|
(2)
|
|
(2)
|
|
(14)
|
|
81
|
|
Total other
expenses, net
|
|
(1,128)
|
|
(1,413)
|
|
(3,049)
|
|
(2,829)
|
|
|
|
|
|
|
|
|
|
|
NET INCOME /
(LOSS)
|
$
|
675
|
$
|
(1,385)
|
$
|
(844)
|
$
|
(1,669)
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
|
|
|
|
|
(Loss) / gain on cash
flow hedges
|
|
(103)
|
|
8
|
|
(48)
|
|
(48)
|
|
Total Other
Comprehensive Income / (Loss)
|
|
(103)
|
|
8
|
|
(48)
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME / (LOSS)
|
$
|
572
|
$
|
(1,377)
|
$
|
(892)
|
$
|
(1,717)
|
|
|
|
|
|
|
|
|
|
|
Earnings / (loss)
per common share, basic and diluted
|
$
|
0.01
|
$
|
(0.06)
|
$
|
(0.07)
|
$
|
(0.09)
|
|
|
Footnotes:
|
|
|
|
(1)
|
includes amortization
of below and above market acquired time charters of $1,501 and $966
for the three months ended June 30, 2014 and 2015, respectively,
and $2,442 and $2,249 for the six months ended June 30, 2014 and
2015, respectively
|
|
|
|
(2)
|
includes amortization
of other intangible assets of $263 and $209 for the three months
ended June 30, 2014 and 2015, respectively, and $524 and $521 for
the six months ended June 30, 2014 and 2015,
respectively
|
|
|
|
(3)
|
includes share-based
compensation of $548 and $171 for the three months ended June 30,
2014 and 2015, respectively, and $1,167 and $333 for the six months
ended June 30, 2014 and 2015, respectively
|
|
BOX SHIPS
INC.
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Expressed in
thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
June
30,
2015
|
|
ASSETS
|
|
|
|
|
|
Cash and restricted
cash (current and non-current)
|
$
|
14,566
|
$
|
14,486
|
|
Other current
assets
|
|
7,455
|
|
9,240
|
|
Vessels and other
fixed assets, net and other non-current assets
|
|
375,828
|
|
365,316
|
|
|
|
|
|
|
Total
Assets
|
$
|
397,849
|
$
|
389,042
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Total debt
(1)
|
$
|
134,950
|
$
|
128,600
|
|
Total other
liabilities
|
|
6,219
|
|
6,178
|
|
Total stockholders'
equity
|
|
256,680
|
|
254,264
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
397,849
|
$
|
389,042
|
|
|
Footnotes:
|
|
|
|
(1)
|
Refer to Liquidity
section, above
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/box-ships-inc-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2015-300129381.html
SOURCE Box Ships Inc.