Pyxis Tankers Inc. Announces Financial Results
for the Three Months Ended March 31, 2017
Maroussi, Greece, May 18, 2017 - Pyxis Tankers
Inc. (NASDAQ Cap Mkts: PXS), an emerging growth pure play product
tanker company, today announced unaudited results for the three
months ended March 31, 2017.
Summary
- For the three months ended March 31, 2017, our time charter
equivalent revenues were $4.7 million, which resulted in a net loss
of $1.7 million, or a loss per share (basic and diluted) of $0.09,
and our EBITDA (see "Non-GAAP Measures and Definitions" below) was
$0.4 million.
- We reached preliminary agreement to extend the maturity of
approximately one-third of the outstanding principal of our debt
until September 2022.
Valentios Valentis, our Chairman and CEO
commented:
"Our results for the first quarter of 2017
reflected a continuation of a challenging chartering environment.
Spot and period charter rates were volatile during the quarter but
improved slightly overall, especially for modern eco-efficient
tankers. Modest demand growth reduced high inventories of refined
products in storage and improved voyage activity. However, we
expect chartering activity to continue to be choppy for most of
2017, but believe in a longer term improvement starting in late
2017 due to attractive market fundamentals, such as, significantly
lower scheduled deliveries of new build medium range tankers
("MRs") combined with projected solid growth in consumption and
export-oriented refinery cargoes. Consequently, we intend to
continue to maintain our mixed chartering strategy. As of May 15,
2017, we had two vessels on time charter and the balance of our
fleet on spot charters, which positions us to take advantage of
improving rates when they occur.
"Overall, we continue to be pleased with our
disciplined, cost-effective operating structure. For example, in
the first quarter of 2017, we saw a fleet-wide improvement in our
daily vessel operating expenses as compared to the same period in
2016.
"As of March 31, 2017, our net debt stood at
$68.4 million, and the weighted average interest rate was
approximately 3.5% during the first quarter of 2017. In May 2017,
one of our lenders agreed, subject to execution of customary
documentation, to extend the maturity of the loans with respect to
two of our vessels, which represents approximately $25.0 million of
our outstanding debt, for an additional four years to September
2022. Once this amendment is in place, the first scheduled balloon
payment with respect to our bank debt will be due in the second
quarter of 2020, which enhances our financial flexibility.
"As part of our strategic plan, Pyxis Tankers
continues to focus on acquisition opportunities. The long-term
economics are attractive for the acquisition of a quality
second-hand MR2 with current vessel prices substantially below
10-year averages."
Results for the three months ended March 31, 2016 and
2017
For the three months ended March 31, 2017, we
reported a net loss of $1.7 million, or $0.09 basic and diluted
loss per share, compared to a net income of $1.1 million, or $0.06
basic and diluted earnings per share, for the same period in 2016.
For the first quarter of 2017, our EBITDA was $0.4 million, a
decrease of $2.9 million from $3.3 million for the same period in
2016. The decrease in net income was primarily due to a $2.9
million decrease in time charter equivalent revenues.
|
Three Months ended March 31, |
|
2016 |
|
2017 |
|
(Thousands of U.S. dollars, except for daily TCE
rates) |
Voyage revenues |
8,448 |
|
7,715 |
Voyage related costs
and commissions |
(805) |
|
(3,006) |
Time charter equivalent
revenues* |
7,643 |
|
4,709 |
|
|
|
|
Total operating
days |
533 |
|
480 |
|
|
|
|
Daily time charter
equivalent rate* |
14,339 |
|
9,810 |
* Subject to rounding; please see "Non-GAAP
Measures and Definitions" below.
Management's Discussion and Analysis of
Financial Results for the Three Months ended March 31, 2016 and
2017 (Amounts are presented in million U.S. dollars, rounded to
the nearest one hundred thousand, except as otherwise noted)
Voyage revenues: Voyage revenues of $7.7 million
for the three months ended March 31, 2017 represented a decrease of
$0.7 million, or 8.7%, from $8.4 million in the comparable period
in 2016. The decrease during the first quarter of 2017 was
attributed to lower time charter equivalent rates as well as to a
decrease in total operating days.
Voyage related costs and commissions: Voyage
related costs and commissions of $3.0 million for the three months
ended March 31, 2017 represented an increase of $2.2 million, or
273.4%, from $0.8 million in the comparable period in 2016. The
increase was primarily attributed to greater spot charter activity
which incurs voyage costs.
Vessel operating expenses: Vessel operating
expenses of $3.0 million for the three months ended March 31, 2017
represented a decrease of $0.3 million, or 10.2%, from $3.3 million
in the comparable period in 2016. The decrease was primarily
attributed to our cost efficiencies from the two eco-efficient MR
vessels.
General and administrative expenses: General and
administrative expenses of $0.8 million for the three months ended
March 31, 2017 increased by $0.1 million, or 16.5%, from $0.7
million in the comparable period in 2016, mainly due to an increase
in other professional services.
Management fees, related parties: Management
fees to our ship manager, Pyxis Maritime Corp., of $0.2 million for
the three months ended March 31, 2017 remained relatively stable
compared to the three-month period ended March 31, 2016.
Management fees, other: Management fees mainly
payable to International Tanker Management Ltd., our fleet's
technical manager, of $0.2 million for the three months ended March
31, 2017 remained relatively stable compared to the three-month
period ended March 31, 2016, which included the services of North
Sea Tankers BV, the former commercial manager of Northsea Alpha and
Northsea Beta.
Amortization of special survey costs:
Amortization of special survey costs was less than $0.1 million for
both three-month periods ended March 31, 2017 and 2016.
Depreciation: Depreciation of $1.4 million for
the three months ended March 31, 2017 remained stable compared to
the three-month period ended March 31, 2016.
Bad debt provisions: Bad debt provisions of $0.2
million for the three months ended March 31, 2017 represented an
increase in doubtful account for trade receivables.
Interest and finance costs, net: Interest and
finance costs, net, for the three months ended March 31, 2017
amounted to $0.7 million and remained relatively stable compared to
the three-month period ended March 31, 2016.
Unaudited Consolidated Statements of Comprehensive Income /
(Loss)
For the three months ended March 31, 2016 and 2017
(Expressed in thousands of U.S. dollars, except for share and
per share data)
|
Three Months Ended |
|
Three Months Ended |
|
March 31, 2016 |
|
March 31, 2017 |
|
|
|
|
Voyage
revenues |
8,448 |
|
7,715 |
|
|
|
|
Expenses: |
|
|
|
Voyage related costs
and commissions |
(805) |
|
(3,006) |
Vessel operating
expenses |
(3,303) |
|
(2,965) |
General and
administrative expenses |
(660) |
|
(769) |
Management fees,
related parties |
(145) |
|
(175) |
Management fees,
other |
(262) |
|
(232) |
Amortization of special
survey costs |
(62) |
|
(18) |
Depreciation |
(1,435) |
|
(1,373) |
Bad debt
provisions |
- |
|
(181) |
Operating income / (loss) |
1,776 |
|
(1,004) |
|
|
|
|
Other
expenses: |
|
|
|
Interest
and finance costs, net |
(701) |
|
(699) |
Total
other expenses, net |
(701) |
|
(699) |
|
|
|
|
Net
income / (loss) |
1,075 |
|
(1,703) |
|
|
|
|
Earnings / (loss)
per common share, basic and diluted |
$
0.06 |
|
($0.09) |
|
|
|
|
Weighted average
number of common shares, basic and diluted |
18,277,893 |
|
18,277,893 |
Consolidated Balance Sheets
As of December 31, 2016 and March 31, 2017 (unaudited)
(Expressed in thousands of U.S. dollars, except for share and
per share data)
|
December 31, 2016 |
March 31, 2017 |
ASSETS |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
Cash and cash
equivalents |
783 |
465 |
Restricted cash,
current portion |
143 |
142 |
Inventories |
1,173 |
1,063 |
Trade receivables,
net |
1,681 |
2,968 |
Prepayments and other
assets |
404 |
402 |
Total current assets |
4,184 |
5,040 |
|
|
|
FIXED ASSETS,
NET: |
|
|
Vessels, net |
121,341 |
119,968 |
Total fixed assets, net |
121,341 |
119,968 |
|
|
|
OTHER NON-CURRENT
ASSETS: |
|
|
Restricted cash, net of
current portion |
4,857 |
4,858 |
Deferred charges,
net |
358 |
340 |
Total other non-current assets |
5,215 |
5,198 |
Total
assets |
130,740 |
130,206 |
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
Current portion of
long-term debt, net of deferred financing costs, current |
6,813 |
6,717 |
Accounts payable |
3,115 |
3,115 |
Due to related
parties |
1,953 |
5,024 |
Hire collected in
advance |
415 |
446 |
Accrued and other
liabilities |
574 |
724 |
Total current liabilities |
12,870 |
16,026 |
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
Long-term debt, net of
current portion and deferred financing costs, non-current |
66,617 |
64,630 |
Promissory note |
2,500 |
2,500 |
Total non-current liabilities |
69,117 |
67,130 |
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
STOCKHOLDERS'
EQUITY: |
|
|
Preferred stock ($0.001
par value; 50,000,000 shares authorized; none issued) |
- |
- |
Common stock ($0.001
par value; 450,000,000 shares authorized; |
|
|
18,277,893 shares
issued and outstanding at |
|
|
each of December 31,
2016 and March 31, 2017) |
18 |
18 |
Additional paid-in
capital |
70,123 |
70,123 |
Accumulated
deficit |
(21,388) |
(23,091) |
Total stockholders' equity |
48,753 |
47,050 |
Total
liabilities and stockholders' equity |
130,740 |
130,206 |
Unaudited Consolidated Statements of Cash Flow
For the three months ended March 31, 2016 and 2017
(Expressed in thousands of U.S. dollars)
|
Three Months Ended |
Three Months Ended |
|
March 31, 2016 |
March 31, 2017 |
|
|
|
Cash flows from
operating activities: |
|
|
Net income /
(loss) |
1,075 |
(1,703) |
Adjustments to
reconcile net income / (loss) to net cash provided by operating
activities: |
|
|
Depreciation |
1,435 |
1,373 |
Amortization of special
survey costs |
62 |
18 |
Amortization of
financing costs |
43 |
38 |
Bad debt
provisions |
- |
181 |
Changes in assets
and liabilities: |
|
|
Inventories |
34 |
110 |
Trade receivables,
net |
(17) |
(1,468) |
Due from related
parties |
(10) |
- |
Prepayments and other
assets |
147 |
2 |
Accounts payable |
(445) |
- |
Due to related
parties |
(121) |
3,071 |
Hire collected in
advance |
(1,139) |
31 |
Accrued
and other liabilities |
(86) |
150 |
Net
cash provided by operating activities |
978 |
1,803 |
|
|
|
Cash flow from
investing activities: |
|
|
Net cash provided by investing activities |
- |
- |
|
|
|
Cash flows from
financing activities: |
|
|
Repayment of long-term
debt |
(2,121) |
(2,121) |
Net cash used in financing activities |
(2,121) |
(2,121) |
|
|
|
Net decrease in cash
and cash equivalents |
(1,143) |
(318) |
|
|
|
Cash and cash
equivalents at the beginning of the period |
4,122 |
783 |
|
|
|
Cash and cash equivalents at the end of the period |
2,979 |
465 |
Liquidity and Debt
Pursuant to our loan agreements, as of March 31,
2017, we were required to maintain minimum liquidity of $5.0
million. Total cash and cash equivalents, including restricted
cash, aggregated to $5.5 million as of March 31, 2017.
Total debt (in thousands of U.S. dollars), net
of deferred financing costs:
|
|
As
at December |
|
As
at March |
|
|
31, 2016 |
|
31, 2017 |
Bank debt |
$ |
73,430 |
$ |
71,347 |
Promissory Note -
related party |
|
2,500 |
|
2,500 |
Total |
$ |
75,930 |
$ |
73,847 |
Our weighted average interest rate on our total
debt for the three months ended March 31, 2016 and 2017 was 3.17%
and 3.53%, respectively. The increase in the weighted average
interest rate resulted from higher LIBOR rates.
As noted above, in May 2017, the lender of the
Pyxis Delta and the Pyxis Theta, subject to execution of customary
documentation, agreed to extend the maturity of its respective
loans from September 2018 to September 2022 under the same
amortization schedule and applicable margin. As of September 2018,
the aggregate outstanding balance of these loans is scheduled to be
$20.8 million, which will be subsequently repaid in 16 equal
quarterly installments of $0.65 million each, plus a balloon
payment of $10.4 million payable together with the last quarterly
installment.
Non-GAAP Measures and Definitions
Earnings before interest, taxes, depreciation
and amortization ("EBITDA") represents the sum of net income /
(loss), interest and finance costs, depreciation and amortization
and, if any, income taxes during a period. EBITDA is not a
recognized measurement under U.S. GAAP.
EBITDA is presented in this press release as we
believe that it provides investors with a means of evaluating and
understanding how our management evaluates operating performance.
This non-GAAP measure should not be considered in isolation from,
as a substitute for, or superior to financial measures prepared in
accordance with U.S. GAAP. In addition, this non-GAAP measure does
not have standardized meaning, and is therefore unlikely to be
comparable to similar measures presented by other companies.
|
|
Three Months Ended |
(In thousands of U.S. dollars) |
|
March 31, 2016 |
|
March 31, 2017 |
Reconciliation of Net
income / (loss) to EBITDA |
|
|
|
|
|
|
|
|
|
Net income /
(loss) |
$ |
1,075 |
$ |
(1,703) |
|
|
|
|
|
Depreciation |
|
1,435 |
|
1,373 |
|
|
|
|
|
Amortization of special
survey costs |
|
62 |
|
18 |
|
|
|
|
|
Interest and finance
costs, net |
|
701 |
|
699 |
|
|
|
|
|
EBITDA |
$ |
3,273 |
$ |
387 |
Daily time charter equivalent ("TCE") is a
shipping industry performance measure of the average daily revenue
performance of a vessel on a per voyage basis. TCE is not
calculated in accordance with U.S. GAAP. We utilize TCE because we
believe it is a meaningful measure to compare period-to-period
changes in our performance despite changes in the mix of charter
types (i.e., spot charters, time charters and bareboat charters)
under which our vessels may be employed between the periods. Our
management also utilizes TCE to assist them in making decisions
regarding employment of the vessels. We calculate TCE by dividing
voyage revenues after deducting voyage related costs and
commissions by operating days for the relevant period. Voyage
related costs and commissions primarily consist of brokerage
commissions, port, canal and fuel costs that are unique to a
particular voyage, which would otherwise be paid by the charterer
under a time charter contract.
Vessel operating expenses ("Opex") per day are
our vessel operating expenses for a vessel, which primarily consist
of crew wages and related costs, insurance, lube oils,
communications, spares and consumables, tonnage taxes as well as
repairs and maintenance, divided by the ownership days in the
applicable period.
We calculate fleet utilization by dividing the
number of operating days during a period by the number of available
days during the same period. We use fleet utilization to measure
our efficiency in finding suitable employment for our vessels and
minimizing the amount of days that our vessels are off-hire for
reasons other than scheduled repairs or repairs under guarantee,
vessel upgrades, special surveys and intermediate dry-dockings or
vessel positioning. Ownership days are the total number of days in
a period during which we owned each of the vessels in our fleet.
Available days are the number of ownership days in a period, less
the aggregate number of days that our vessels were off-hire due to
scheduled repairs or repairs under guarantee, vessel upgrades or
special surveys and intermediate dry-dockings and the aggregate
number of days that we spent positioning our vessels during the
respective period for such repairs, upgrades and surveys. Operating
days are the number of available days in a period, less the
aggregate number of days that our vessels were off-hire or out of
service due to any reason, including technical breakdowns and
unforeseen circumstances.
Recent Daily Fleet
Data: |
|
|
|
|
|
(Amounts in U.S.$) |
|
|
Three Months Ended March 31, |
|
|
|
2016 |
|
2017 |
Eco-Efficient MR2:
(2 of our vessels) |
|
|
|
|
|
|
TCE |
|
15,698 |
|
14,043 |
|
Opex |
|
6,334 |
|
5,622 |
|
Utilization % |
|
99.5% |
|
84.4% |
Eco-Modified MR2: (1 of
our vessels) |
|
|
|
|
|
|
TCE |
|
17,653 |
|
11,050 |
|
Opex |
|
6,553 |
|
6,347 |
|
Utilization % |
|
100.0% |
|
97.8% |
Standard MR2: (1 of
our vessels) |
|
|
|
|
|
|
TCE |
|
18,730 |
|
10,119 |
|
Opex |
|
6,445 |
|
5,931 |
|
Utilization % |
|
100.0% |
|
96.7% |
Small Tankers: (2 of
our vessels) |
|
|
|
|
|
|
TCE |
|
8,768 |
|
4,717 |
|
Opex |
|
5,318 |
|
4,711 |
|
Utilization % |
|
93.4% |
|
85.0% |
Fleet: (6
vessels) |
|
|
|
|
|
|
TCE |
|
14,339 |
|
9,810 |
|
Opex |
|
6,050 |
|
5,491 |
|
Utilization % |
|
97.6% |
|
88.9% |
When we refer to total daily operational costs
as applied to our eco-modified and eco-efficient tankers, we define
that as the sum of (1) daily Opex per vessel, (2) total general and
administrative expenses in the period per day per vessel, and (3)
the technical and commercial management fees in the period per day
per vessel. We believe total daily operational costs for such
vessels can provide a more complete picture of financial results
for comparative purposes.
Conference Call and Webcast
We will host a conference call to discuss our
results at 4:30 p.m., Eastern Time, on May 18, 2017. Participants
should dial into the call 10 minutes prior to the scheduled time
using the following dial-in numbers:
U.S.
Toll Free: |
|
·
+1 (877) 201-0168 |
U.S.
Toll/International: |
|
·
+1 (647) 788-4901 |
Conference ID: |
|
·
9099172 |
A live webcast of the conference call will be
available through our website (http://www.pyxistankers.com).
Webcast participants of the live conference call should register on
the website approximately 10 minutes prior to the start of the
webcast. An archived version of the webcast will be available on
the website within approximately two hours of the completion of the
call.
About Pyxis Tankers Inc.
We own a modern fleet of six tankers engaged in
seaborne transportation of refined petroleum products and other
bulk liquids. We are focused on growing our fleet of medium range
product tankers, which provide operational flexibility and enhanced
earnings potential due to their "eco" features and modifications.
We are well positioned to opportunistically expand and maximize our
fleet due to competitive cost structure, strong customer
relationships, and an experienced management team, whose interests
are aligned with those of our shareholders.
Pyxis Tankers Fleet (as of May 15, 2017)
|
|
|
Carrying |
|
|
Charter |
|
Anticipated |
|
|
|
Capacity |
Year |
Type of |
Rate |
|
Redelivery |
Vessel Name |
Shipyard |
Vessel Type |
(dwt) |
Built |
Charter |
(per day) (1) |
|
Date |
Pyxis Epsilon |
SPP / S. Korea |
MR |
50,295 |
2015 |
Time |
$13,350 |
|
Dec.
2017 |
Pyxis Theta |
SPP / S. Korea |
MR |
51,795 |
2013 |
Spot |
n/a |
|
n/a |
Pyxis Malou |
SPP / S. Korea |
MR |
50,667 |
2009 |
Spot |
n/a |
|
n/a |
Pyxis Delta |
Hyundai / S. Korea |
MR |
46,616 |
2006 |
Time |
$13,125 |
|
Sep.
2017 |
Northsea Alpha |
Kejin / China |
Small Tanker |
8,615 |
2010 |
Spot |
n/a |
|
n/a |
Northsea Beta |
Kejin / China |
Small Tanker |
8,647 |
2010 |
Spot |
n/a |
|
n/a |
|
|
|
216,635 |
|
|
|
|
|
- This table shows gross rates and does not reflect any
commissions payable.
We have no drydockings scheduled until the
second half of 2018.
Forward Looking Statements
This press release includes "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These statements include statements about our plans,
strategies, financial performance, prospects or future events and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"schedule, " "project, " "intend," "plan," "anticipate," "believe,"
"estimate," "potential," "outlook," "continue," "likely," "will,"
"would" and variations of these terms and similar expressions, or
the negative of these terms or similar expressions. Such
forward-looking statements are necessarily based upon estimates and
assumptions that, while considered reasonable by us and our
management team, are inherently uncertain. A more complete
description of these risks and uncertainties can be found in our
filings with the U.S. Securities and Exchange Commission, including
under the caption "Risk Factors" in our Annual Report on Form 20-F
for the fiscal year ended December 31, 2016. We caution you not to
place undue reliance on any forward-looking statements, which are
made as of the date of this press release. We undertake no
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements, except to the extent required
by applicable laws.
Company
Pyxis Tankers Inc.
59 K. Karamanli Street
Maroussi 15125 Greece
info@pyxistankers.com
Visit our website at www.pyxistankers.com
Company Contacts
Henry Williams
Chief Financial Officer
Tel: +30 (210) 638 0200 / +1 (516) 455-0106
Email: hwilliams@pyxistankers.com
Antonios C. Backos
Senior VP for Corporate Development & General Counsel
Tel: +30 (210) 638-0180
Email: abackos@pyxistankers.com
Source: Pyxis Tankers Inc.
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