ATHENS, Greece, Sept. 1, 2015 /PRNewswire/ -- Paragon
Shipping Inc. (NASDAQ: PRGN) ("Paragon Shipping" or the "Company"),
a global shipping transportation company specializing in drybulk
cargoes, announced today its results for the second quarter and six
months ended June 30, 2015.
Second Quarter 2015 Highlights & Recent
Developments
- Net revenue, net of voyage expenses, of $7.9 million in the second quarter of 2015.
- Reduced average daily adjusted total vessel operating expenses
by 11.1% year-over-year.
- Adjusted EBITDA of negative $0.6
million in the second quarter of 2015.
- Adjusted net loss of $8.1
million, or $0.32 per common
share, in the second quarter of 2015.
- Sale of four vessels of the operating fleet to support the
Company's liquidity and ensure its sustainability through
2016.
Financial Highlights
(Expressed in thousands of United States Dollars, except for vessel
data, TCE and share data)
|
Quarter Ended
June 30, 2014
|
Quarter Ended
June 30, 2015
|
Six Months
Ended
June 30, 2014
|
Six Months
Ended
June 30, 2015
|
|
Average number of
vessels
|
14.0
|
16.0
|
14.0
|
16.0
|
|
Time charter
equivalent rate (TCE) (1)
|
7,870
|
5,494
|
8,208
|
5,148
|
|
Net Revenue, net
of voyage expenses
|
9,743
|
7,857
|
19,994
|
14,688
|
|
EBITDA
(1)
|
(2,158)
|
(65,465)
|
(21,210)
|
(67,086)
|
|
Adjusted EBITDA
(1)
|
882
|
(625)
|
1,215
|
(2,070)
|
|
Net
Loss
|
(9,652)
|
(72,906)
|
(35,537)
|
(81,838)
|
|
Adjusted Net Loss
(1)
|
(5,584)
|
(8,066)
|
(11,601)
|
(16,822)
|
|
Loss per common
share basic and diluted
|
(0.39)
|
(2.93)
|
(1.56)
|
(3.29)
|
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.23)
|
(0.32)
|
(0.51)
|
(0.68)
|
|
|
|
(1)
|
Please see the table
at the back of this release for a reconciliation of TCE to Charter
Revenue, EBITDA and Adjusted EBITDA to Net Income / (Loss),
Adjusted Net Income / (Loss) to Net Income / (Loss) and Adjusted
Earnings / (Loss) per common share to Earnings / (Loss) per common
share, the most directly comparable financial measures calculated
and presented in accordance with generally accepted accounting
principles in the United States ("U.S. GAAP").
|
Management Commentary
Commenting on the results, Michael Bodouroglou, Chairman, Chief
Executive Officer and Interim Chief Financial Officer of Paragon
Shipping, stated: "Although the market has recently started to show
signs of a mild recovery, during the second quarter of 2015,
charter rates continued to fluctuate close to historically low
levels. For the quarter, this translated into an adjusted net loss
of $8.1 million, or $0.32 per share. In 2015 year to date, our focus
remained on maintaining our efficiency in our operating and cost
control performance. As a result, for the six months ended
June 30, 2015, we reported a fleet
utilization of 99.1% and an average daily adjusted total vessel
operating expenses of $5,746, or
11.1% lower year-over-year."
Mr. Bodouroglou continued, "Considering the adverse market
conditions, a special committee, formed by the Company's
independent directors, decided that it was in the Company's and its
shareholders best interest to sell four vessels, namely the M/V
Dream Seas, the M/V Gentle Seas, the M/V Peaceful Seas and the M/V
Friendly Seas, so as to improve its liquidity. Following such sale
that was concluded in July 2015,
there has been an immediate cash inflow into the Company of more
than $6.0 million representing the
net proceeds from the sale after the extinguishment of all existing
indebtedness of these four vessels. Also, going forward, it is
estimated that there should be additional cash flow savings from
this sale given the debt service requirements of these vessels. In
addition, in the second quarter of 2015, we sold our share in Box
Ships Inc. and in Korea Line Corporation. The total proceeds from
the sale of these shares amounted to $3.9
million in the aggregate."
Mr. Bodouroglou concluded, "We remain confident that the market
will recover from the prolonged downturn that it is currently
facing. Nonetheless, we have taken great strides to ensure the
Company's sustainability even if current conditions persist
throughout 2016."
Second Quarter 2015 Financial Results
Gross charter revenue for the second quarter of 2015 was
$9.9 million, compared to
$14.7 million for the second quarter
of 2014. The Company reported a net loss of $72.9 million, or $2.93 per basic and diluted share, for the second
quarter of 2015, calculated based on a weighted average number of
basic and diluted shares outstanding for the period of 24,460,642
and reflecting the impact of the non-cash items discussed below.
For the second quarter of 2014, the Company reported a net loss of
$9.7 million, or $0.39 per basic and diluted share, calculated
based on a weighted average number of basic and diluted shares of
24,281,164.
Excluding all non-cash items described below, the adjusted net
loss for the second quarter of 2015 was $8.1
million, or $0.32 per basic
and diluted share, compared to adjusted net loss of $5.6 million, or $0.23 per basic and diluted share, for the second
quarter of 2014.
Adjusted EBITDA, excluding all non-cash items described below,
was negative $0.6 million for the
second quarter of 2015, compared to positive $0.9 million for the second quarter of 2014.
The Company operated an average of 16.0 vessels during the
second quarter of 2015, earning an average TCE rate of $5,494 per day, compared to an average of 14.0
vessels during the second quarter of 2014, earning an average TCE
rate of $7,870 per day.
Adjusted total vessel operating expenses, which included vessel
operating expenses, management fees and general and administrative
expenses, and excluded share-based compensation, were $8.4 million for the second quarter of 2015,
compared to $8.1 million for the
second quarter of 2014. On a daily basis, adjusted total vessel
operating expenses for the second quarter of 2015 were
approximately $5,781 per vessel per
day, or 9.5% lower than the adjusted total vessel operating
expenses of $6,388 per vessel per day
for the second quarter of 2014. The reduction in the average daily
adjusted total vessel operating expenses is the result of the
Company's cost control efficiency and the economies of scale of
having a larger fleet, as well as of a favorable impact of the Euro
/ U.S. dollar exchange rate fluctuations.
The loss related to assets held for sale of $47.6 million for the three months ended
June 30, 2015, mainly relates to the
write down to fair value of the M/V Dream Seas, the M/V Gentle
Seas, the M/V Peaceful Seas and the M/V Friendly Seas, following
their classification as assets held for sale as of June 30, 2015.
Based on the Company's cash flow projections, it is probable
that cash on hand and cash provided by operating activities will
not be sufficient to cover the capital expenditures relating to the
Company's newbuilding contracts that become due in the twelve-month
period ending June 30, 2016. Thus, as
of June 30, 2015, the Company
assessed as probable the potential sale of the five newbuilding
contracts. As a result of this increased probability, the Company
recorded an impairment loss of $16.8
million for the three months ended June 30, 2015, which relates to the write down to
fair value of the contract price of the five newbuilding drybulk
carriers.
In the second quarter of 2015, the Company proceeded with the
sale of the total 3,437,500 shares of Box Ships Inc. (NYSE:TEU)
("Box Ships") at an average sale price of $0.8542 per share, which resulted in a loss on
investment in affiliates of $0.2
million for the three months ended June 30, 2015. The proceeds from the sale of such
shares amounted to $2.9 million.
Furthermore, in the second quarter of 2015, the Company
proceeded with the sale of the total 44,550 shares of Korea Line
Corporation ("KLC") at an average sale price of $21.68 per share. The total cash received from
the sale of these shares amounted to $1.0
million, net of commissions. A loss from marketable
securities, net, of $0.1 million was
recorded for the three months ended June 30,
2015.
Second Quarter 2015 Non-cash and One-off Items
The
Company's results for the three months ended June 30, 2015 included the following non-cash
items:
- Loss related to assets held for sale of $47.6 million, or $1.91 per basic and diluted share.
- Impairment loss of $16.8 million,
or $0.67 per basic and diluted
share.
- Loss from marketable securities of $0.1
million or $0.01 per basic and
diluted share.
- Loss on investment in affiliate of $0.2
million or $0.01 per basic and
diluted share.
- Unrealized gain on interest rate swaps of $0.1 million, or less than $0.01 per basic and diluted share.
- Non-cash expenses of $0.3
million, or $0.01 per basic
and diluted share, relating to the amortization of the compensation
cost recognized for non-vested share awards issued to executive
officers, directors and employees.
In the aggregate, these non-cash items decreased the Company's
earnings by $64.8 million, which
represents a $2.61 decrease in
earnings per basic and diluted share, for the three months ended
June 30, 2015.
Six Months ended June 30,
2015 Financial Results
Gross charter revenue for the six months ended June 30, 2015 was $20.6
million, compared to $28.9
million for the six months ended June
30, 2014. The Company reported a net loss of $81.8 million, or $3.29 per basic and diluted share, for the six
months ended June 30, 2015,
calculated based on a weighted average number of basic and diluted
shares outstanding for the period of 24,460,642 and reflecting the
impact of the non-cash items discussed below. For the six months
ended June 30, 2014, the Company
reported a net loss of $35.5 million,
or $1.56 per basic and diluted share,
calculated based on a weighted average number of basic and diluted
shares of 22,414,824.
Excluding all non-cash items described below, the adjusted net
loss for the six months ended June 30,
2015 was $16.8 million, or
$0.68 per basic and diluted share,
compared to adjusted net loss of $11.6
million, or $0.51 per basic
and diluted share, for the six months ended June 30, 2014.
Adjusted EBITDA, excluding all non-cash items described below,
was negative $2.1 million for the six
months ended June 30, 2015, compared
to positive $1.2 million for the six
months ended June 30, 2014.
The Company operated an average of 16.0 vessels during the six
months ended June 30, 2015, earning
an average TCE rate of $5,148 per
day, compared to an average of 14.0 vessels during the six months
ended June 30, 2014, earning an
average TCE rate of $8,208 per
day.
Adjusted total vessel operating expenses, which included vessel
operating expenses, management fees and general and administrative
expenses, and excluded share-based compensation, were $16.6 million for the six months ended
June 30, 2015, compared to
$16.3 million for the six months
ended June 30, 2014. On a daily
basis, adjusted total vessel operating expenses for the six months
ended June 30, 2015 were
approximately $5,746 per vessel per
day, or 11.1% lower than the adjusted total vessel operating
expenses of $6,463 per vessel per day
for the six months ended June 30,
2014. The reduction in the average daily adjusted total
vessel operating expenses is the result of the Company's cost
control efficiency and the economies of scale of having a larger
fleet, as well as of a favorable impact of the Euro / U.S. dollar
exchange rate fluctuations.
The loss related to assets held for sale of $47.6 million for the six months ended
June 30, 2015, mainly relates to the
write down to fair value of the M/V Dream Seas, the M/V Gentle
Seas, the M/V Peaceful Seas and the M/V Friendly Seas, following
their classification as assets held for sale as of June 30, 2015.
Based on the Company's cash flow projections, it is probable
that cash on hand and cash provided by operating activities will
not be sufficient to cover the capital expenditures relating to the
Company's newbuilding contracts that become due in the twelve-month
period ending June 30, 2016. Thus, as
of June 30, 2015, the Company
assessed as probable the potential sale of the five newbuilding
contracts. As a result of this increased probability, the Company
recorded an impairment loss of $16.8
million for the six months ended June
30, 2015, which relates to the write down to fair value of
the contract price of the five newbuilding drybulk carriers.
In the second quarter of 2015, the Company proceeded with the
sale of the total 3,437,500 shares of Box Ships Inc. (NYSE:TEU)
("Box Ships") at an average sale price of $0.8542 per share, which resulted in a loss on
investment in affiliates of $0.2
million for the six months ended June
30, 2015. The proceeds from the sale of such shares amounted
to $2.9 million.
Furthermore, in the second quarter of 2015, the Company
proceeded with the sale of the total 44,550 shares of Korea Line
Corporation ("KLC") at an average sale price of $21.68 per share. The total cash received from
the sale of these shares amounted to $1.0
million, net of commissions. A loss from marketable
securities, net, of $0.1 million was
recorded for the six months ended June 30,
2015.
Six Months ended June 30, 2015
Non-cash and One-off Items
The Company's results for the six months ended June 30, 2015 included the following non-cash
items:
- Loss related to assets held for sale of $47.6 million, or $1.91 per basic and diluted share.
- Impairment loss of $16.8 million,
or $0.67 per basic and diluted
share.
- Loss from marketable securities of $0.1
million or $0.01 per basic and
diluted share.
- Loss on investment in affiliate of $0.2
million or $0.01 per basic and
diluted share.
- Unrealized gain on interest rate swaps of $0.2 million, or less than $0.01 per basic and diluted share.
- Non-cash expenses of $0.5
million, or $0.02 per basic
and diluted share, relating to the amortization of the compensation
cost recognized for non-vested share awards issued to executive
officers, directors and employees.
In the aggregate, these non-cash items decreased the Company's
earnings by $65.0 million, which
represents a $2.61 decrease in
earnings per basic and diluted share, for the six months ended
June 30, 2015.
Cash Flows
For the six months ended June 30,
2015, the Company's net cash used in operating activities
was $2.7 million, compared to
$0.3 million for the six months ended
June 30, 2014. For the six months
ended June 30, 2015, net cash from
investing activities was $11.4
million and net cash used in financing activities was
$11.5 million. For the six months
ended June 30, 2014, net cash used in
investing activities was $63.9
million and net cash from financing activities was
$55.2 million.
Fleet Developments
On June 25, 2015, a special committee
consisting of the Company's five independent directors ("Special
Committee") was assigned to investigate the potential block sale of
four vessels of the Company's operating fleet, the M/V Dream Seas,
the M/V Gentle Seas, the M/V Peaceful Seas and the M/V Friendly
Seas, for the purpose of improving the Company's liquidity. The
Special Committee determined it to be in the best interest of the
Company and its shareholders to sell the vessel-owning subsidiaries
of these vessels to an entity controlled by Mr. Michael Bodouroglou, the Company's Chairman,
President, Chief Executive Officer and Interim Chief Financial
Officer. In July 2015, the Special
Committee and Mr. Bodouroglou agreed to an aggregate sale price of
$63.2 million for the sale of all of
the issued and registered shares of the respective vessel-owning
subsidiaries. The Special Committee determined that the purchase
price represented fair market value for the assets to be sold,
based on vessel valuations received from independent shipbrokers.
The sale and transfer of the respective vessel-owning subsidiaries
were concluded on July 27, 2015.
Financing Update
On July 31, 2015, the Company entered
into a loan supplemental agreement and agreed, subject to certain
conditions included therein, to amended terms with the syndicate
led by Nordea Bank Finland Plc, including the deferral of one and a
portion of two of its scheduled quarterly installments due in the
third quarter of 2015 through the first quarter of 2016. The
deferred amounts will be settled along with the balloon
installment. The Company also agreed to cancel the available
borrowing capacity of up to $78.0
million with respect to the undrawn portion of the facility
for the partial financing of its outstanding newbuilding contracts.
In addition, effective from April 1,
2015 until March 31, 2016, the
syndicate agreed to either waive the application or amend the
definition of the financial and security cover ratio covenants
contained in the respective facility.
On July 27, 2015, following the
sale of all of the issued and registered shares of the
vessel-owning subsidiaries of the M/V Dream Seas, M/V Gentle Seas,
M/V Peaceful Seas and M/V Friendly Seas to an entity controlled by
Mr. Michael Bodouroglou as discussed
above, the Company proceeded with the extinguishment of the then
outstanding indebtedness with HSBC Bank Plc and HSH Nordbank AG,
amounting to $56.4 million in the
aggregate.
Newbuilding Contracts Update
Currently, the Company's outstanding newbuilding contracts consist
of two Ultramax drybulk carriers, with expected deliveries between
the third and fourth quarter of 2015, and three Kamsarmax drybulk
carriers with expected deliveries in the first quarter of 2016. The
aggregate cost of the newbuilding contracts is $148.2 million, of which $101.7 million is currently outstanding.
Based on the Company's cash flow projections, cash on hand and
cash provided by operating activities will not be sufficient to
cover the capital expenditures relating to the Company's
newbuilding contracts that become due in the twelve-month period
ending June 30, 2016. Thus, as of
June 30, 2015, the Company assessed
as probable the potential sale of the five newbuilding contracts.
As a result of this increased probability, an impairment loss of
$16.8 million was recorded in the
second quarter of 2015.
Conference Call and Webcast details
The Company's management team will host a conference call to
discuss its results for the second quarter and six months ended
June 30, 2015 on September 2, 2015, at 9:00
am Eastern Time.
Participants should dial into the call ten minutes before the
scheduled time using the following numbers 1-888-348-8931
(USA) or +1-412-902-4248
(international) to access the call. A replay of the conference call
will be available for seven days and can be accessed by dialing
1-877-870-5176 (USA) or
+1-858-384-5517 (international) and using passcode 10070880.
Slides and audio webcast
There will also be a simultaneous live webcast through the
Company's website, www.paragonship.com. Participants should
register on the website approximately ten minutes prior to the
start of the webcast. If you would like a copy of the release
mailed or faxed, please contact DresnerAllenCaron Investor
Relations at 212-691-8087.
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company incorporated
under the laws of the Republic of the Marshall Islands with executive offices in
Athens, Greece, specializing in
the transportation of drybulk cargoes. Paragon Shipping's current
fleet consists of twelve drybulk vessels with a total carrying
capacity of 719,769 dwt. In addition, Paragon Shipping's current
newbuilding contracts consist of two Ultramax and three Kamsarmax
drybulk carriers that are scheduled to be delivered from the third
quarter of 2015 through the first quarter of 2016. The Company's
common shares and senior notes trade on NASDAQ under the symbols
"PRGN" and "PRGNL," respectively. For more information, visit:
www.paragonship.com. The information contained on Paragon
Shipping's website does not constitute part of this press
release.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. Such risks and uncertainties include, without
limitation, the strength of world economies and currencies, general
market conditions, including fluctuations in charter rates and
vessel values, changes in demand for drybulk 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, as well as
other risks that have been included in filings with the Securities
and Exchange Commission, all of which are available at
www.sec.gov.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
- Tables Follow -
Fleet List
Drybulk Fleet
The following tables represent our drybulk fleet and the drybulk
newbuilding vessels that we have agreed to acquire as of
September 1, 2015.
|
Operating Drybulk
Fleet
|
|
Name
|
Type / No. of
Vessels
|
Dwt
|
Year
Built
|
|
Panamax
|
|
Coral
Seas
|
Panamax
|
74,477
|
2006
|
|
Golden
Seas
|
Panamax
|
74,475
|
2006
|
|
Pearl
Seas
|
Panamax
|
74,483
|
2006
|
|
Diamond
Seas
|
Panamax
|
74,274
|
2001
|
|
Deep
Seas
|
Panamax
|
72,891
|
1999
|
|
Calm
Seas
|
Panamax
|
74,047
|
1999
|
|
Kind
Seas
|
Panamax
|
72,493
|
1999
|
|
Total
Panamax
|
7
|
517,140
|
|
|
Supramax
|
|
|
|
|
Sapphire
Seas
|
Supramax
|
53,702
|
2005
|
|
Total
Supramax
|
1
|
53,702
|
|
|
Handysize
|
|
|
|
|
Prosperous
Seas
|
Handysize
|
37,293
|
2012
|
|
Precious
Seas
|
Handysize
|
37,205
|
2012
|
|
Priceless
Seas
|
Handysize
|
37,202
|
2013
|
|
Proud
Seas
|
Handysize
|
37,227
|
2014
|
|
Total
Handysize
|
4
|
148,927
|
|
|
Grand
Total
|
12
|
719,769
|
|
|
|
|
Drybulk Newbuildings
that we have agreed to acquire
|
|
Hull
no.
|
Type / No. of
Vessels
|
Dwt
|
Expected
Delivery
|
|
Ultramax
|
|
Hull no.
DY4050
|
Ultramax
|
63,500
|
Q3 2015
|
|
Hull no.
DY4052
|
Ultramax
|
63,500
|
Q4 2015
|
|
Total
Ultramax
|
2
|
127,000
|
|
|
Kamsarmax
|
|
Hull no.
YZJ1144
|
Kamsarmax
|
81,800
|
Q1 2016
|
|
Hull no.
YZJ1145
|
Kamsarmax
|
81,800
|
Q1 2016
|
|
Hull no.
YZJ1142
|
Kamsarmax
|
81,800
|
Q1 2016
|
|
Total
Kamsarmax
|
3
|
245,400
|
|
|
Grand
Total
|
5
|
372,400
|
|
|
Summary Fleet
Data
|
|
(Expressed in
United States Dollars where applicable)
|
|
|
Quarter Ended
June 30, 2014
|
Quarter Ended
June 30, 2015
|
Six Months Ended
June 30, 2014
|
Six Months Ended
June 30, 2015
|
|
FLEET
DATA
|
|
Average number of
vessels (1)
|
14.0
|
16.0
|
14.0
|
16.0
|
|
Calendar days for
fleet (2)
|
1,274
|
1,456
|
2,528
|
2,896
|
|
Available days for
fleet (3)
|
1,256
|
1,450
|
2,467
|
2,878
|
|
Operating days for
fleet (4)
|
1,238
|
1,430
|
2,436
|
2,853
|
|
Fleet utilization
(5)
|
98.6%
|
98.6%
|
98.7%
|
99.1%
|
|
AVERAGE DAILY
RESULTS
|
|
Time charter
equivalent (6)
|
7,870
|
5,494
|
8,208
|
5,148
|
|
Vessel operating
expenses (7)
|
4,211
|
4,064
|
4,236
|
4,015
|
|
Management fees -
related party adjusted (8)
|
1,060
|
867
|
1,058
|
880
|
|
General and
administrative expenses adjusted (9)
|
1,117
|
850
|
1,169
|
851
|
|
Total vessel
operating expenses adjusted (10)
|
6,388
|
5,781
|
6,463
|
5,746
|
|
|
|
(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 days in the period.
|
|
(2)
|
Calendar days for the
fleet are the total days the vessels were in our possession for the
relevant period.
|
|
(3)
|
Available days for
the fleet are the total calendar days for the relevant period less
any off-hire days associated with scheduled dry-dockings or special
or intermediate surveys.
|
|
(4)
|
Operating days for
the fleet are the total available days for the relevant period less
any off-hire days due to any reason, other than scheduled
dry-dockings or special or intermediate surveys, including
unforeseen circumstances. Any idle days relating to the days a
vessel remains unemployed are included in operating
days.
|
|
(5)
|
Fleet utilization is
the percentage of time that our vessels were able to generate
revenues and is determined by dividing operating days by fleet
available days for the relevant period.
|
|
(6)
|
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 consistent with industry standards and is
determined by dividing Net Revenue generated from charters less
voyage expenses by operating days for the relevant time period.
Voyage expenses consist of all costs that are unique to a
particular voyage, primarily including port expenses, canal dues,
war risk insurances and fuel costs, net of gains or losses from the
sale of bunkers to charterers. TCE is a non-GAAP standard shipping
industry performance measure used primarily to compare
period-to-period changes in a shipping company's performance
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.
|
|
(7)
|
Daily vessel
operating expenses, which includes crew costs, provisions, deck and
engine stores, lubricating oil, insurance, maintenance and repairs,
is calculated by dividing vessel operating expenses by fleet
calendar days for the relevant time period.
|
|
(8)
|
Daily management fees
- related party adjusted are calculated by dividing management fees
- related party, excluding share based compensation to the
management company, by fleet calendar days for the relevant time
period.
|
|
(9)
|
Daily general and
administrative expenses adjusted are calculated by dividing general
and administrative expenses, excluding non-cash expenses relating
to the amortization of the share based compensation cost for
non-vested share awards, by fleet calendar days for the relevant
time period.
|
|
(10)
|
Total vessel
operating expenses ("TVOE") is a measurement of our total expenses
associated with operating our vessels. TVOE is the sum of vessel
operating expenses, management fees and general and administrative
expenses. Daily TVOE adjusted is calculated by dividing TVOE,
excluding non-cash expenses relating to the amortization of the
share based compensation cost for non-vested share awards and share
based compensation to the management company, by fleet calendar
days for the relevant time period.
|
|
Time Charter
Equivalents Reconciliation
|
|
(Expressed in
thousands of United States Dollars where applicable, except for
TCE)
|
|
|
Quarter Ended
June 30, 2014
|
Quarter Ended
June 30, 2015
|
Six Months
Ended
June 30, 2014
|
Six Months
Ended
June 30, 2015
|
|
Charter
Revenue
|
14,666
|
9,945
|
28,903
|
20,630
|
|
Commissions
|
(842)
|
(599)
|
(1,650)
|
(1,250)
|
|
Voyage Expenses,
net
|
(4,081)
|
(1,489)
|
(7,259)
|
(4,692)
|
|
Net Revenue, net of
voyage expenses
|
9,743
|
7,857
|
19,994
|
14,688
|
|
Total operating
days
|
1,238
|
1,430
|
2,436
|
2,853
|
|
Time Charter
Equivalent
|
7,870
|
5,494
|
8,208
|
5,148
|
|
Condensed Cash
Flow Information (Unaudited)
|
|
(Expressed in
thousands of United States Dollars)
|
|
|
Six Months Ended
June 30,
2014
|
Six Months Ended
June 30, 2015
|
|
Cash generated from /
(used in):
|
|
Operating
Activities
|
(341)
|
(2,670)
|
|
Investing
Activities
|
(63,927)
|
11,382
|
|
Financing
Activities
|
55,169
|
(11,526)
|
|
Reconciliation of
U.S. GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
EBITDA and
Adjusted EBITDA Reconciliation (1)
|
|
(Expressed in
thousands of United States Dollars)
|
|
|
Quarter Ended
June 30, 2014
|
Quarter Ended
June 30, 2015
|
Six Months
Ended
June 30, 2014
|
Six Months
Ended
June 30, 2015
|
|
Net Loss
|
(9,652)
|
(72,906)
|
(35,537)
|
(81,838)
|
|
Plus Net interest
expense, including interest expense from interest rate
swaps
|
3,009
|
2,457
|
5,415
|
4,841
|
|
Plus
Depreciation
|
4,485
|
4,984
|
8,912
|
9,911
|
|
EBITDA
|
(2,158)
|
(65,465)
|
(21,210)
|
(67,086)
|
|
Adjusted EBITDA
Reconciliation
|
|
Net Loss
|
(9,652)
|
(72,906)
|
(35,537)
|
(81,838)
|
|
Loss related to
assets held for sale
|
-
|
47,640
|
-
|
47,640
|
|
Impairment
loss
|
-
|
16,754
|
15,695
|
16,754
|
|
Gain from sale of
assets
|
(403)
|
-
|
(403)
|
-
|
|
(Gain) / loss from
marketable securities
|
(12)
|
134
|
(12)
|
134
|
|
Loss on investment in
affiliate
|
3,101
|
207
|
5,855
|
207
|
|
Unrealized loss /
(gain) on interest rate swaps
|
108
|
(150)
|
(69)
|
(210)
|
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
246
|
255
|
1,359
|
491
|
|
Write off of
financing expenses
|
1,028
|
-
|
1,511
|
-
|
|
Adjusted Net
Loss
|
(5,584)
|
(8,066)
|
(11,601)
|
(16,822)
|
|
Plus Net interest
expense, net of write off of financing expenses, including interest
expense from swaps
|
1,981
|
2,457
|
3,904
|
4,841
|
|
Plus
Depreciation
|
4,485
|
4,984
|
8,912
|
9,911
|
|
Adjusted
EBITDA
|
882
|
(625)
|
1,215
|
(2,070)
|
|
|
|
(1)
|
The Company considers
EBITDA to represent Net Income / (Loss) plus net interest expense,
including interest expense from interest rate swaps, and
depreciation and amortization. The Company's management uses EBITDA
and Adjusted EBITDA as a performance measure. EBITDA and Adjusted
EBITDA are not items recognized by U.S. GAAP and should not be
considered as an alternative to Net Income / (Loss), Operating
Income / (Loss) or any other indicator of a Company's operating
performance required by U.S. GAAP. The Company's definition of
EBITDA and Adjusted EBITDA may not be the same as that used by
other companies in the shipping or other industries. 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 to derive the Adjusted
Net Income / (Loss) and the Adjusted EBITDA because the Company
believes that these adjustments provide additional information on
the fleet operational results.
|
|
Reconciliation of
U.S. GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
Adjusted Net
Income / (Loss) and Adjusted Earnings / (Loss) per common share
Reconciliation
|
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
U.S. GAAP
Financial Information
|
Quarter Ended
June 30, 2014
|
Quarter Ended
June 30, 2015
|
Six Months
Ended
June 30, 2014
|
Six Months
Ended
June 30, 2015
|
|
Net Loss
|
(9,652)
|
(72,906)
|
(35,537)
|
(81,838)
|
|
Net Loss attributable
to non-vested share awards
|
(133)
|
(1,313)
|
(571)
|
(1,363)
|
|
Net Loss available to
common shareholders
|
(9,519)
|
(71,593)
|
(34,966)
|
(80,475)
|
|
Weighted average
number of common shares basic and diluted
|
24,281,164
|
24,460,642
|
22,414,824
|
24,460,642
|
|
Loss per common share
basic and diluted
|
(0.39)
|
(2.93)
|
(1.56)
|
(3.29)
|
|
Reconciliation of
Net Income / (Loss) to Adjusted Net Income / (Loss)
|
|
|
|
|
|
Net Loss
|
(9,652)
|
(72,906)
|
(35,537)
|
(81,838)
|
|
Loss related to
assets held for sale
|
-
|
47,640
|
-
|
47,640
|
|
Impairment
loss
|
-
|
16,754
|
15,695
|
16,754
|
|
Gain from sale of
assets
|
(403)
|
-
|
(403)
|
-
|
|
(Gain) / loss from
marketable securities
|
(12)
|
134
|
(12)
|
134
|
|
Loss on investment in
affiliate
|
3,101
|
207
|
5,855
|
207
|
|
Unrealized loss /
(gain) on interest rate swaps
|
108
|
(150)
|
(69)
|
(210)
|
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
246
|
255
|
1,359
|
491
|
|
Write off of
financing expenses
|
1,028
|
-
|
1,511
|
-
|
|
Adjusted Net Loss
(1)
|
(5,584)
|
(8,066)
|
(11,601)
|
(16,822)
|
|
Adjusted Net Loss
attributable to non-vested share awards
|
(77)
|
(145)
|
(186)
|
(280)
|
|
Adjusted Net Loss
available to common shareholders
|
(5,507)
|
(7,921)
|
(11,415)
|
(16,542)
|
|
Weighted average
number of common shares basic and diluted
|
24,281,164
|
24,460,642
|
22,414,824
|
24,460,642
|
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.23)
|
(0.32)
|
(0.51)
|
(0.68)
|
|
|
|
(1)
|
Adjusted Net Income /
(Loss) and Adjusted Earnings / (Loss) per common share are not
items recognized by U.S. GAAP and should not be considered as
alternatives to Net Income / (Loss) and Earnings / (Loss) per
common share, respectively, or any other indicator of a Company's
operating performance required by U.S. GAAP. The Company excluded
non-cash items to derive at the Adjusted Net Income / (Loss) and
the Adjusted Earnings / (Loss) per common share basic and diluted
because the Company believes that these adjustments provide
additional information on the fleet operational results. The
Company's definition of Adjusted Net Income / (Loss) and Adjusted
Earnings / (Loss) per common share may not be the same as that used
by other companies in the shipping or other industries.
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
As of December 31,
2014 and June 30, 2015
|
|
(Expressed in
thousands of United States Dollars)
|
|
|
|
December 31,
2014
|
|
June 30,
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and restricted
cash (current and non-current)
|
|
20,920
|
|
8,227
|
|
Assets held for
sale
|
|
-
|
|
62,568
|
|
Vessels,
net
|
|
369,033
|
|
249,395
|
|
Advances for vessels
under construction
|
|
49,972
|
|
35,299
|
|
Other fixed assets,
net
|
|
923
|
|
795
|
|
Investment in
affiliate
|
|
2,956
|
|
-
|
|
Other
assets
|
|
12,800
|
|
9,026
|
|
|
|
|
|
|
Total
Assets
|
|
456,604
|
|
365,310
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
associated with assets held for sale
|
|
-
|
|
58,998
|
|
Long-term debt, net
of deferred financing costs (including current portion)
|
|
226,418
|
|
156,787
|
|
Other
liabilities
|
|
7,786
|
|
8,321
|
|
Total shareholders'
equity
|
|
222,400
|
|
141,204
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
456,604
|
|
365,310
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss
|
|
For the three
months ended June 30, 2014 and 2015
|
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June 30,
2014
|
|
June 30,
2015
|
|
Revenue
|
|
|
|
|
|
Charter
revenue
|
|
14,666
|
|
9,945
|
|
Commissions
|
|
(842)
|
|
(599)
|
|
Net
Revenue
|
|
13,824
|
|
9,346
|
|
Expenses /
(Income)
|
|
|
|
|
|
Voyage expenses,
net
|
|
4,081
|
|
1,489
|
|
Vessels operating
expenses
|
|
5,365
|
|
5,918
|
|
Dry-docking
expenses
|
|
716
|
|
68
|
|
Management fees -
related party
|
|
1,350
|
|
1,263
|
|
Depreciation
|
|
4,485
|
|
4,984
|
|
General and
administrative expenses
|
|
1,669
|
|
1,492
|
|
Loss related to
assets held for sale
|
|
-
|
|
47,640
|
|
Impairment
loss
|
|
-
|
|
16,754
|
|
Bad debt
provisions
|
|
15
|
|
(11)
|
|
Gain from sale of
assets
|
|
(403)
|
|
-
|
|
(Gain) / loss from
marketable securities, net
|
|
(12)
|
|
134
|
|
Operating
Loss
|
|
(3,442)
|
|
(70,385)
|
|
Other Income /
(Expenses)
|
|
|
|
|
|
Interest and finance
costs
|
|
(2,812)
|
|
(2,265)
|
|
Loss on derivatives,
net
|
|
(310)
|
|
(43)
|
|
Interest
income
|
|
5
|
|
1
|
|
Equity in net income
/ (loss) of affiliate
|
|
18
|
|
(1)
|
|
Loss on investment in
affiliate
|
|
(3,101)
|
|
(207)
|
|
Foreign currency
loss
|
|
(10)
|
|
(6)
|
|
Total Other Expenses,
net
|
|
(6,210)
|
|
(2,521)
|
|
Net
Loss
|
|
(9,652)
|
|
(72,906)
|
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
|
Unrealized gain on
cash flow hedges
|
|
144
|
|
-
|
|
Transfer of realized
loss on cash flow hedges to "Interest and finance costs"
|
|
22
|
|
-
|
|
Equity in other
comprehensive (loss) / income of affiliate
|
|
(10)
|
|
6
|
|
Transfer of equity in
other comprehensive loss of affiliate to
"Loss on investment in affiliate"
|
|
-
|
|
14
|
|
Unrealized gain on
change in fair value of marketable securities
|
|
183
|
|
47
|
|
Transfer of (gain) /
loss on change in fair value of marketable securities to
"(Gain) / loss from marketable securities, net"
|
|
(12)
|
|
134
|
|
Total Other
Comprehensive Income
|
|
327
|
|
201
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
(9,325)
|
|
(72,705)
|
|
|
|
|
|
|
Loss per Class A
common share, basic and diluted
|
|
($0.39)
|
|
($2.93)
|
|
Weighted average
number of Class A common shares, basic and diluted
|
|
24,281,164
|
|
24,460,642
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss
|
|
For the six months
ended June 30, 2014 and 2015
|
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2014
|
|
June 30,
2015
|
|
Revenue
|
|
|
|
|
|
Charter
revenue
|
|
28,903
|
|
20,630
|
|
Commissions
|
|
(1,650)
|
|
(1,250)
|
|
Net
Revenue
|
|
27,253
|
|
19,380
|
|
Expenses /
(Income)
|
|
|
|
|
|
Voyage expenses,
net
|
|
7,259
|
|
4,692
|
|
Vessels operating
expenses
|
|
10,710
|
|
11,628
|
|
Dry-docking
expenses
|
|
2,193
|
|
351
|
|
Management fees -
related party
|
|
3,554
|
|
2,549
|
|
Depreciation
|
|
8,912
|
|
9,911
|
|
General and
administrative expenses
|
|
3,434
|
|
2,956
|
|
Loss related to
assets held for sale
|
|
-
|
|
47,640
|
|
Impairment
loss
|
|
15,695
|
|
16,754
|
|
Bad debt
provisions
|
|
15
|
|
16
|
|
Gain from sale of
assets
|
|
(403)
|
|
-
|
|
(Gain) / loss from
marketable securities, net
|
|
(12)
|
|
134
|
|
Other
income
|
|
(40)
|
|
-
|
|
Operating
Loss
|
|
(24,064)
|
|
(77,251)
|
|
Other Income /
(Expenses)
|
|
|
|
|
|
Interest and finance
costs
|
|
(5,022)
|
|
(4,435)
|
|
Loss on derivatives,
net
|
|
(336)
|
|
(199)
|
|
Interest
income
|
|
12
|
|
3
|
|
Equity in net (loss)
/ income of affiliate
|
|
(258)
|
|
173
|
|
Loss on investment in
affiliate
|
|
(5,855)
|
|
(207)
|
|
Foreign currency
(loss) / gain
|
|
(14)
|
|
78
|
|
Total Other Expenses,
net
|
|
(11,473)
|
|
(4,587)
|
|
Net
Loss
|
|
(35,537)
|
|
(81,838)
|
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
|
Unrealized gain on
cash flow hedges
|
|
131
|
|
-
|
|
Transfer of realized
loss on cash flow hedges to "Interest and finance costs"
|
|
99
|
|
-
|
|
Equity in other
comprehensive loss of affiliate
|
|
(5)
|
|
-
|
|
Transfer of equity in
other comprehensive loss of affiliate to
"Loss on investment in affiliate"
|
|
-
|
|
14
|
|
Unrealized (loss) /
gain on change in fair value of marketable securities
|
|
(69)
|
|
3
|
|
Transfer of (gain) /
loss on change in fair value of marketable securities to
"(Gain) / loss from marketable securities, net"
|
|
(12)
|
|
134
|
|
Total Other
Comprehensive Income
|
|
144
|
|
151
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
(35,393)
|
|
(81,687)
|
|
|
|
|
|
|
Loss per Class A
common share, basic and diluted
|
|
($1.56)
|
|
($3.29)
|
|
Weighted average
number of Class A common shares, basic and diluted
|
|
22,414,824
|
|
24,460,642
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/paragon-shipping-inc-reports-second-quarter-and-six-months-ended-june-30-2015-results-300136314.html
SOURCE Paragon Shipping Inc.
