ATHENS, Greece, May 19, 2014 /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 three months ended March 31, 2014.
Financial Highlights
(Expressed in thousands of United States Dollars, except for vessel
data, TCE and share data)
|
Quarter
Ended
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
Average number of
vessels
|
12.7
|
13.9
|
Time charter
equivalent rate (TCE) (1)
|
11,388
|
8,557
|
Net
Revenue
|
13,453
|
13,429
|
EBITDA
(1)
|
2,551
|
(19,052)
|
Adjusted EBITDA
(1)
|
3,182
|
333
|
Net
Loss
|
(3,511)
|
(25,885)
|
Adjusted Net Loss
(1)
|
(2,880)
|
(6,500)
|
Loss per common
share basic and diluted
|
(0.32)
|
(1.24)
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.26)
|
(0.31)
|
|
(1)
|
Please see the table
at the end 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, Mr. Michael
Bodouroglou, Chairman and Chief Executive Officer of Paragon
Shipping, stated, "During the first quarter of 2014, we
accomplished many of our previously announced objectives. In line
with our growth strategy, we increased our operating fleet to 14
vessels by taking delivery of the M/V Proud Seas in January and
entered into an agreement to sell our 4,800 TEU containership to an
unrelated third party, which, after taking into consideration our
latest agreement with the shipyard to reduce the contract price of
the respective vessel by $770,000,
will result in a positive net cash inflow to the Company of
approximately $10.0 million. We also
increased our newbuilding program to seven drybulk vessels by
ordering three Eco-Design Kamsarmax vessels for delivery in 2015.
Regarding our loan and credit facilities, we improved our financial
flexibility by entering into two new loan agreements that
streamlined our debt amortization profile and removed restrictive
covenants that placed various restrictions on our ability to pay
dividends. Last but not least, the Board of Directors has
authorized an amount of up to $10.0
million to be used to buy back common shares in the open
market over the next twelve months in an effort to increase
shareholders' value."
Mr. Bodouroglou continued, "We continue to maintain full
exposure to the drybulk spot charter market that enables us to
capture any upside in rates as the drybulk market improves.
However, during the first quarter of 2014, the drybulk market
weakened, specifically for Panamax vessels, which, coupled with our
two scheduled drydockings, translated into an adjusted loss of
$6.5 million or $0.31 per share."
Mr. Bodouroglou concluded, "The Company is now positioned to
take advantage of what we expect to be an improving drybulk market
in the forthcoming years, which we expect will eventually enable
the Company to resume paying cash dividends to its
shareholders."
Newbuilding Program Update
In April 2014, the Company entered
into a memorandum of agreement for the sale of its 4,800 TEU
containership to an unrelated third party for a net amount of
$41.2 million. The sale of the vessel
and its transfer to the new owners is expected to be concluded by
the end of May, 2014. In May 2014,
the Company also agreed with the shipyard, subject to certain
closing conditions, to reduce the contract price of the respective
vessel by $770,000. Based on the
newbuilding contract, after taking into consideration the latest
reduction in the contract price, the total contractual cost of the
4,800 TEU containership newbuilding amounts to $54.2 million, of which an amount of $31.2 million is currently outstanding and
payable by the Company upon the delivery of the vessel from the
shipyard. The sale of the vessel will result in a positive net cash
inflow to the Company of approximately $10.0
million. In addition, the Company has mutually agreed with
China Development Bank to cancel the corresponding credit facility
for the vessel.
In March 2014, the Company signed
shipbuilding contracts for three Kamsarmax newbuilding drybulk
carriers. These Eco-Design Kamsarmax newbuildings have a carrying
capacity of 81,800 dwt each and will be built at Jiangsu
Yangzijiang Shipbuilding Co. Two of the newbuildings are scheduled
to be delivered in the second quarter of 2015 and one is scheduled
to be delivered in the fourth quarter of 2015. The total
consideration for these three newbuilding contracts is $91.7 million.
On January 7, 2014, the Company
took delivery of its fourth Handysize drybulk vessel; the M/V Proud
Seas. In January 2014, an amount of
$21.6 million was paid to the
shipyard representing the final installment of the respective
vessel, which was financed from the syndicated secured loan
facility led by Nordea Bank Finland Plc ("Nordea").
Financing Update
On May 6, 2014, the Company completed
the documentation for a senior secured loan facility with a
syndicate of major European banks led by Nordea in an amount of
$160.0 million, $40.0 million more than the previously announced
size. This new, upsized facility will be used for the refinancing
of six vessels of its operating fleet (the four Handysize vessels
M/V Prosperous Seas, M/V Precious Seas, M/V Priceless Seas and the
M/V Proud Seas, and the Panamax vessels M/V Coral Seas and M/V
Golden Seas), along with the financing of up to 60% of the market
value of the remaining two Ultramax newbuilding drybulk carriers,
the Hull numbers DY4050 and DY4052, and of two of its Kamsarmax
newbuilding drybulk carriers, the Hull numbers YZJ1144 and YZJ1145,
that are all expected to be delivered in the second quarter of
2015.
On April 4, 2014, the Company
completed the documentation for the previously announced loan
agreement with HSH Nordbank AG for a $47.0
million senior secured loan facility, for the refinancing of
the M/V Friendly Seas and the partial financing of the first two
Ultramax newbuilding drybulk carriers, the Hull numbers DY152 and
DY153.
Both of these new "covenant light" facilities improve our
balance sheet by reducing our overall leverage, leaving only one of
the recently ordered Kamsarmax newbuildings to be financed. At the
same time they increase our financial flexibility by having no
dividend restrictions and include no earnings maintenance related
covenants going forward.
Share Buyback Program
On May 12, 2014, the Company's Board of Directors authorized a
share buyback program of up to $10.0
million for a period of twelve months. The Company expects
to repurchase these shares in the open market, at times and prices
that are considered to be appropriate by the Company, but is not
obligated under the terms of the program to repurchase any
shares.
As of the date of this press release, the Company has not
purchased any shares.
First Quarter 2014 Financial Results
Gross charter revenue was $14.2
million for each of the first quarters of 2014 and 2013. The
Company reported a net loss of $25.9
million, or $1.24 per basic
and diluted share, for the first quarter of 2014, calculated based
on a weighted average number of basic and diluted shares
outstanding for the period of 20,560,102 and reflecting the impact
of the non-cash items discussed below. For the first quarter of
2013, the Company reported net loss of $3.5
million, or $0.32 per basic
and diluted share, calculated based on a weighted average number of
basic and diluted shares of 10,992,088.
Excluding all non-cash items described below, the adjusted net
loss for the first quarter of 2014 was $6.5
million, or $0.31 per basic
and diluted share, compared to adjusted net loss of $2.9 million, or $0.26 per basic and diluted share, for the first
quarter of 2013.
EBITDA for the first quarter of 2014 was negative $19.1 million, compared to positive $2.6 million for the first quarter of 2013.
EBITDA for the first quarter of 2014 was calculated by adding the
net loss of $25.9 million to net
interest expense, including interest expense from interest rate
swaps, and depreciation that in the aggregate amounted to
$6.8 million. Adjusted EBITDA,
excluding all non-cash items described below, was $0.3 million for the first quarter of 2014,
compared to $3.2 million for the
first quarter of 2013.
The Company operated an average of 13.9 vessels during the first
quarter of 2014, earning an average TCE rate of $8,557 per day, compared to an average of 12.7
vessels during the first quarter of 2013, earning an average TCE
rate of $11,388 per day.
Total adjusted operating expenses for the first quarter of 2014
equaled $9.7 million, or
approximately $7,717 per vessel per
day, which included vessel operating expenses, management fees,
general and administrative expenses and dry-docking costs, and
excluded share-based compensation for the period of $1.1 million. For the first quarter of 2013,
total adjusted operating expenses were $10.2
million, or approximately $8,916 per vessel per day, which included the
items mentioned above, and excluded share-based compensation of
$0.5 million.
As of March 31, 2014, the Company
owned approximately 13.6% of the outstanding common stock of Box
Ships Inc. (NYSE:TEU) ("Box Ships"), a former wholly-owned
subsidiary of the Company which successfully completed its initial
public offering in April 2011. The
investment in Box Ships is accounted for under the equity method
and is separately reflected on the Company's unaudited condensed
consolidated balance sheets. Based on the unaudited financial
statements reported by Box Ships on May 12,
2014, for the first quarter of 2014, the Company recorded a
loss of $0.3 million, representing
its share of Box Ships' net loss for the period, compared to
$0.6 million income for the first
quarter of 2013.
As of March 31, 2014, based on the
increased probability of selling the 4,800 TEU containership
newbuilding, the Company recorded a non-cash impairment loss of
$15.7 million, relating to the write
down to fair value of the contract price of the respective
vessel.
As of March 31, 2014, the
difference between the fair value and the book value of the
Company's investment in Box Ships was considered to be other than
temporary and therefore the investment was impaired and the Company
recorded a non-cash loss of $2.8
million.
First Quarter 2014 Non-cash Items
The Company's results for the three months ended March 31, 2014 included the following non-cash
items:
- Impairment loss of $15.7 million,
or $0.75 per basic and diluted
share.
- Loss on investment in affiliate of $2.8
million, or $0.14 per basic
and diluted share.
- An unrealized gain on interest rate swaps of $0.2 million, or $0.01 per basic and diluted share.
- Non-cash expenses of $1.1
million, or $0.05 per basic
and diluted share, relating to share based compensation to the
management company amounting to $0.9
million and to the amortization of the compensation cost
recognized for non-vested share awards issued to executive
officers, directors and employees amounting to $0.2 million.
In the aggregate, these non-cash items decreased the Company's
earnings by $19.4 million, which
represents a $0.93 decrease in
earnings per basic and diluted share, for the three months ended
March 31, 2014.
Cash Flows
For the three months ended March 31,
2014, the Company generated net cash from operating
activities of $1.2 million, compared
to $0.3 million for the three months
ended March 31, 2013. For the three
months ended March 31, 2014, net cash
used in investing activities was $63.2
million and net cash from financing activities was
$61.8 million. For the three months
ended March 31, 2013, net cash used
in investing activities was $0.6
million and net cash used in financing activities was
$3.7 million.
Conference Call and Webcast details
The Company's management team will host a conference call to
discuss its first quarter 2014 results on May 20, 2014 at 9:00 am
Eastern Time.
Participants should dial into the call ten minutes before the
scheduled time using the following numbers 1-877-300-8521
(USA) or +1-412-317-6026
(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 10045612.
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 Allen & Caron Investor
Relations at 212-691-8087.
About Paragon Shipping Inc.
Paragon Shipping Inc. 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 fourteen drybulk vessels with a total carrying
capacity of 853,699 dwt. In addition, Paragon Shipping's current
newbuilding program consists of two Ultramax drybulk carriers that
are scheduled to be delivered in 2014, as well as two Ultramax
drybulk carriers and three Kamsarmax drybulk carriers that are
scheduled to be delivered in 2015. 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.
Robert Perri, CFA
Chief Financial Officer
ir@paragonshipping.gr
Allen & Caron Inc.
Rudy Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
Len Hall (Media)
len@allencaron.com
(949) 474-4300
- 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
May 19, 2014.
Operating Drybulk
Fleet
|
Name
|
Type / No. of
Vessels
|
Dwt
|
Year
Built
|
Panamax
|
Dream
Seas
|
Panamax
|
75,151
|
2009
|
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
|
8
|
592,291
|
|
Supramax
|
|
|
|
Friendly
Seas
|
Supramax
|
58,779
|
2008
|
Sapphire
Seas
|
Supramax
|
53,702
|
2005
|
Total
Supramax
|
2
|
112,481
|
|
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
|
14
|
853,699
|
|
Drybulk Newbuildings
that we have agreed to acquire
|
Hull
no.
|
Type / No. of
Vessels
|
Dwt
|
Expected
Delivery
|
Ultramax
|
Hull no.
DY152
|
Ultramax
|
63,500
|
Q2 2014
|
Hull no.
DY153
|
Ultramax
|
63,500
|
Q3 2014
|
Hull no.
DY4050
|
Ultramax
|
63,500
|
Q2 2015
|
Hull no.
DY4052
|
Ultramax
|
63,500
|
Q2 2015
|
Total
Ultramax
|
4
|
254,000
|
|
Kamsarmax
|
Hull no.
YZJ1144
|
Kamsarmax
|
81,800
|
Q2 2015
|
Hull no.
YZJ1145
|
Kamsarmax
|
81,800
|
Q2 2015
|
Hull no.
YZJ1142
|
Kamsarmax
|
81,800
|
Q4 2015
|
Total
Kamsarmax
|
3
|
245,400
|
|
Grand
Total
|
7
|
499,400
|
|
Summary Fleet
Data
|
(Expressed in
United States Dollars where applicable)
|
|
|
Quarter
Ended
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
FLEET
DATA
|
Average number of
vessels (1)
|
12.7
|
13.9
|
Calendar days for
fleet (2)
|
1,142
|
1,254
|
Available days for
fleet (3)
|
1,125
|
1,211
|
Operating days for
fleet (4)
|
1,123
|
1,198
|
Fleet utilization
(5)
|
99.8%
|
98.9%
|
AVERAGE DAILY
RESULTS
|
Time charter
equivalent (6)
|
11,388
|
8,557
|
Vessel operating
expenses (7)
|
4,449
|
4,262
|
Dry-docking expenses
(8)
|
413
|
1,178
|
Management fees -
related party adjusted (9)
|
1,016
|
1,056
|
General and
administrative expenses adjusted (10)
|
3,038
|
1,221
|
Total vessel
operating expenses adjusted (11)
|
8,916
|
7,717
|
(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 dry-docking
expenses are calculated by dividing dry-docking expenses by fleet
calendar days for the relevant time period.
|
(9)
|
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.
|
(10)
|
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.
|
(11)
|
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, dry-docking 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
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
Charter
Revenue
|
14,225
|
14,237
|
Commissions
|
(772)
|
(808)
|
Voyage Expenses,
net
|
(664)
|
(3,178)
|
Net Revenue, net of
voyage expenses
|
12,789
|
10,251
|
Total operating
days
|
1,123
|
1,198
|
Time Charter
Equivalent
|
11,388
|
8,557
|
Condensed Cash
Flow Information (Unaudited)
|
(Expressed in
thousands of United States Dollars)
|
|
|
Quarter
Ended
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
Cash and Cash
Equivalents, beginning of period
|
17,677
|
31,302
|
Cash generated from /
(used in):
|
Operating
Activities
|
261
|
1,204
|
Investing
Activities
|
(620)
|
(63,240)
|
Financing
Activities
|
(3,721)
|
61,794
|
Net decrease in Cash
and Cash Equivalents
|
(4,080)
|
(242)
|
Cash and Cash
Equivalents, end of period
|
13,597
|
31,060
|
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
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
Net Loss
|
(3,511)
|
(25,885)
|
Plus Net interest
expense, including interest expense from interest rate
swaps
|
1,928
|
2,406
|
Plus
Depreciation
|
4,134
|
4,427
|
EBITDA
|
2,551
|
(19,052)
|
Adjusted EBITDA
Reconciliation
|
Net Loss
|
(3,511)
|
(25,885)
|
Impairment
loss
|
-
|
15,695
|
Loss on investment in
affiliate
|
391
|
2,754
|
Unrealized gain on
interest rate swaps
|
(238)
|
(177)
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
478
|
1,113
|
Adjusted Net
Loss
|
(2,880)
|
(6,500)
|
Plus Net interest
expense, including interest expense from swaps
|
1,928
|
2,406
|
Plus
Depreciation
|
4,134
|
4,427
|
Adjusted
EBITDA
|
3,182
|
333
|
(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
March 31,
2013
|
Quarter
Ended
March 31,
2014
|
Net Loss
|
(3,511)
|
(25,885)
|
Net Loss attributable
to non-vested share awards
|
(46)
|
(446)
|
Net Loss available to
common shareholders
|
(3,465)
|
(25,439)
|
Weighted average
number of common shares basic and diluted
|
10,992,088
|
20,560,102
|
Loss per common share
basic and diluted
|
(0.32)
|
(1.24)
|
Reconciliation of
Net Income / (Loss) to Adjusted Net Income / (Loss)
|
|
|
Net Loss
|
(3,511)
|
(25,885)
|
Impairment
loss
|
-
|
15,695
|
Loss on investment in
affiliate
|
391
|
2,754
|
Unrealized gain on
interest rate swaps
|
(238)
|
(177)
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
478
|
1,113
|
Adjusted Net Loss
(1)
|
(2,880)
|
(6,500)
|
Adjusted Net Loss
attributable to non-vested share awards
|
(37)
|
(112)
|
Adjusted Net Loss
available to common shareholders
|
(2,843)
|
(6,388)
|
Weighted average
number of common shares basic and diluted
|
10,992,088
|
20,560,102
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.26)
|
(0.31)
|
(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,
2013 and March 31, 2014
|
(Expressed in
thousands of United States Dollars)
|
|
|
December 31,
2013
|
|
March 31,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and restricted
cash (current and non-current)
|
|
41,312
|
|
42,245
|
Vessels,
net
|
|
306,136
|
|
327,675
|
Advances for vessels
under construction
|
|
45,209
|
|
66,855
|
Other fixed assets,
net
|
|
596
|
|
547
|
Investment in
affiliate
|
|
11,309
|
|
8,284
|
Other
assets
|
|
14,984
|
|
14,843
|
|
|
|
|
|
Total
Assets
|
|
419,546
|
|
460,449
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
180,115
|
|
201,961
|
Total other
liabilities
|
|
6,780
|
|
11,050
|
Total shareholders'
equity
|
|
232,651
|
|
247,438
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
419,546
|
|
460,449
|
|
|
Paragon Shipping
Inc.
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss
|
For the three
months ended March 31, 2013 and 2014
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2013
|
|
March 31,
2014
|
Revenue
|
|
|
|
|
Charter
revenue
|
|
14,225
|
|
14,237
|
Commissions
|
|
(772)
|
|
(808)
|
Net
Revenue
|
|
13,453
|
|
13,429
|
Expenses /
(Income)
|
|
|
|
|
Voyage expenses,
net
|
|
664
|
|
3,178
|
Vessels operating
expenses
|
|
5,081
|
|
5,345
|
Dry-docking
expenses
|
|
471
|
|
1,477
|
Management fees -
related party
|
|
1,496
|
|
2,204
|
Depreciation
|
|
4,134
|
|
4,427
|
General and
administrative expenses
|
|
3,611
|
|
1,765
|
Impairment
loss
|
|
-
|
|
15,695
|
Bad debt
provisions
|
|
17
|
|
-
|
Other
income
|
|
-
|
|
(40)
|
Operating
Loss
|
|
(2,021)
|
|
(20,622)
|
Other Income /
(Expenses)
|
|
|
|
|
Interest and finance
costs
|
|
(1,902)
|
|
(2,210)
|
Loss on derivatives,
net
|
|
(15)
|
|
(26)
|
Interest
income
|
|
226
|
|
7
|
Equity in net income
/ (loss) of affiliate
|
|
569
|
|
(276)
|
Loss on investment in
affiliate
|
|
(391)
|
|
(2,754)
|
Foreign currency gain
/ (loss)
|
|
23
|
|
(4)
|
Total Other Expenses,
net
|
|
(1,490)
|
|
(5,263)
|
Net
Loss
|
|
(3,511)
|
|
(25,885)
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
Unrealized gain /
(loss) on cash flow hedges
|
|
3
|
|
(12)
|
Transfer of realized
loss on cash flow hedges to "Interest and finance costs"
|
|
77
|
|
76
|
Equity in other
comprehensive income of affiliate
|
|
15
|
|
5
|
Unrealized gain /
(loss) on change in fair value of marketable securities
|
|
123
|
|
(251)
|
Total Other
Comprehensive Income / (Loss)
|
|
218
|
|
(182)
|
|
|
|
|
|
Comprehensive
Loss
|
|
(3,293)
|
|
(26,067)
|
|
|
|
|
|
Loss per Class A
common share, basic and diluted
|
|
($0.32)
|
|
($1.24)
|
Weighted average
number of Class A common shares, basic and diluted
|
|
10,992,088
|
|
20,560,102
|
SOURCE Paragon Shipping Inc.