Castor Maritime Inc. (NASDAQ: CTRM) (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months ended March 31, 2023.
Highlights of the First Quarter Ended
March 31, 2023:
- Total Vessel Revenues from
continuing operations: $24.5 million for the three months ended
March 31, 2023, as compared to $37.8 million for the three months
ended March 31, 2022, or a 35.2% decrease;
- Net income of $10.8 million
for the three months ended March 31, 2023, as compared to $20.0
million for the three months ended March 31, 2022, or a 46%
decrease;
- Net (loss) / income from
continuing operations: $(6.5) million for the three months ended
March 31, 2023, as compared to $18.5 million for the three months
ended March 31, 2022, or a 135% decrease;
- (Loss) / Earnings (basic
and diluted) per common share from continuing operations: $(0.07)
per share for the three months ended March 31, 2023, as compared to
$0.20 per share for the three months ended March 31,
2022;
- EBITDA from continuing
operations(1): $1.6 million for
the three months ended March 31, 2023, as compared to $24.2 million
for the three months ended March 31, 2022;
- Adjusted EBITDA from
continuing operations(1): $9.3
million for the three months ended March 31, 2023, as compared to
$24.2 million for the three months ended March 31,
2022;
- Cash and restricted cash of
$72.5 million as of March 31, 2023, as compared to $109.9 million
as of December 31, 2022; and
- The spin-off (the
“Spin-Off”) of our Aframax/LR2 and Handysize tanker segments to a
new Nasdaq-listed company, Toro Corp. (“Toro”) was completed on
March 7, 2023;
- Discontinued Operations:
Following the Spin-Off, the results of the tanker business are
reported as discontinued operations for all periods
presented.
(1) EBITDA and Adjusted EBITDA are not
recognized measures under United States generally accepted
accounting principles (“U.S. GAAP”). Please refer to Appendix B for
the definition and reconciliation of these measures to Net
(loss)/income, the most directly comparable financial measure
calculated and presented in accordance with U.S. GAAP.
Management Commentary First Quarter
2023:
Mr. Petros Panagiotidis, Chairman, Chief
Executive Officer and Chief Financial Officer of Castor
commented:
“In the first quarter of 2023 we completed the
previously announced spin-off of our Aframax/LR2 and Handysize
tanker segments through the distribution of all of the common
shares of Toro Corp. to our shareholders of record as of February
22, 2023. We believe this spin-off represented a substantial
payment by Castor to its shareholders.
The weakness in the dry cargo market during the
first quarter affected our revenues and cash flows, however this
can be explained mostly by seasonal factors. We believe that the
dry bulk fundamentals remain healthy given the historically low
order book and the improved outlook for the Chinese economy.
During this quarter we agreed to sell two of our
older dry vessels at significant capital gains, which we expect to
recognize in the subsequent reporting periods.”
Earnings Commentary:
First Quarter ended March 31, 2023, and
2022 Results
Total vessel revenues from continuing operations
for the three months ended March 31, 2023, decreased to $24.5
million from $37.8 million in the same period of 2022. This
variation was mainly driven by the decrease in prevailing charter
rates of dry bulk vessels. The decrease has been partly offset by
the increase in our Available Days (defined below) from 1,796 days
in the three months ended March 31, 2022, to 1,980 days in the
three months ended March 31, 2023, following the acquisition of two
containerships that were delivered to the Company in November 2022,
both of which are employed under fixed rate time charter
contracts.
The increase in voyage expenses from continuing
operations to $1.3 million in the three months ended March 31,
2023, from $1.0 million in the same period of 2022, is mainly
associated with the decrease of gain on bunkers partly offset by:
(i) decreased bunkers consumption and (ii) decreased brokerage
commission expenses, corresponding to the decrease in vessel
revenues discussed above.
The increase in vessel operating expenses from
continuing operations by $1.2 million, to $11.3 million in the
three months ended March 31, 2023, from $10.1 million in the same
period of 2022, as well as the increase in vessels’ depreciation
and amortization costs by $1.5 million, to $5.8 million in the
three months ended March 31, 2023, from $4.3 million in the same
period of 2022, mainly reflect the increase in our Ownership Days
following the acquisition of the two containerships.
General and administrative expenses from
continuing operations in the three months ended March 31, 2023,
amounted to $1.1 million, whereas, in the same period of 2022
general and administrative expenses totaled $0.9 million. This
increase stemmed from a higher fee paid to Castor Ships, our
manager, following entry into an amended and restated master
management agreement with Castor Ships with effect from July 1,
2022.
Management fees from continuing operations in
the three months ended March 31, 2023, amounted to $1.8 million,
whereas in the same period of 2022, management fees totaled $1.5
million. This increase in management fees is mainly due to the
increase in our Ownership Days for which our managers charge us a
daily management fee, stemming from the expansion of our fleet with
the acquisition of two containerships and to the aforementioned
amendments to our management agreements with Castor Ships.
During the three months ended March 31, 2023, we
incurred net interest costs and finance costs from continuing
operations amounting to $2.3 million compared to $1.4 million
during the same period in 2022. The increase is due to our higher
weighted average interest rate as a result of the increase in the
variable benchmark rates during the three months ended March 31,
2023, as compared with the same period of 2022, partly offset by an
increase in interest we earned from time deposits due to increased
interest rates. Moreover, our weighted average indebtedness
increased from $133.2 million in the three months ended March 31,
2022, to $134.8 million in the three months ended March 31,
2023.
Other expenses, net from continuing operations
in the three months ended March 31, 2023, amounted to $7.3 million,
which mainly includes the unrealized loss of $7.7 million from
revaluing our investments in listed equity securities at period end
market rates. We did not hold any investment in equity securities
during the three months period ended March 31, 2022.
Recent
Financial Developments
Commentary:
Equity update
From January 1, 2023, to date, no issuances of
common shares have taken place. As of May 22, 2023, we had
94,610,088 common shares issued and outstanding.
Liquidity/ Financing/ Cash flow
update
Our consolidated cash position (including our
restricted cash) from continuing operations as of March 31, 2023
decreased by $37.3 million to $72.5 million, as compared to our
cash position on December 31, 2022 amounted to $109.8 million.
During the period ended March 31, 2023, our cash position decreased
mainly as a result of: (i) $22,942 of net operating cash flows
used, (ii) $31.5 million of net expenditures from the purchase and
sale of equity securities, offset by dividends received amounted to
$0.3 million and (iii) $8.4 million for scheduled principal
repayments on our debt. During the period ended March 31, 2023, we
received $2.6 million cash reimbursement from Toro related to the
Spin-Off expenses incurred by us on Toro’s behalf during 2022 and
up to the completion of the Spin-Off and we used $0.2 million for
other capital expenditures relating to our fleet.
As of March 31, 2023, our total debt (including
the debt related to assets held for sale) from continuing
operations, gross of unamortized deferred loan fees, was $132.0
million of which $34.7 million is repayable within one year, as
compared to $140.5 million of gross total debt as of December 31,
2022.
Recent
Business Developments
Commentary:
Completion of the tanker business
Spin-Off
On March 7, 2023, we completed the previously
announced Spin-Off of our tanker fleet comprising one Aframax, five
Aframax/LR2 and two Handysize tankers. In the Spin-Off
distribution, Castor shareholders received one common share of Toro
for every ten Castor common shares held at the close of business on
February 22, 2023. As part of the Spin-Off, among other things,
Castor received 140,000 Series A fixed rate cumulative perpetual
convertible preferred shares of Toro, having a stated amount of
$1,000 and a par value of $0.001 per share.
Additional information about Toro and the
Spin-Off transaction can be found in Amendment No. 4 to the Toro
registration statement with respect to the Spin-Off filed on Form
20-F on February 2, 2023, which is available at www.sec.gov.
Sale of vessels
On March 13, 2023, we entered into an agreement
with a third party for the sale of the M/V Magic Rainbow, a
2007-built Panamax, at a price of $12.6 million. On April 18, 2023,
the M/V Magic Rainbow was delivered to its new owners. The Company
expects to record during the second quarter of 2023 a net gain on
the sale of the M/V Magic Rainbow of approximately $3.8 million,
excluding any transaction related costs.
On March 23, 2023, we entered into an agreement
with a third party for the sale of the M/V Magic Moon, a 2005-built
Panamax, at a price of $13.95 million. The conclusion of the sale
agreement is subject to the execution of definitive documentation
customary for this type of transaction. The vessel is expected to
be delivered to its new owner during the third quarter of 2023. The
Company expects to record during the third quarter of 2023 a net
gain on the sale of the M/V Magic Moon of approximately $4.6
million, excluding any transaction related costs.
Nasdaq Capital Market Minimum Bid Price
Notice
On April 20, 2023, the Company received written
notification from the Nasdaq Stock Market that it was not in
compliance with the minimum $1.00 per share bid price requirement
for continued listing on the Nasdaq Capital Market and was provided
with 180 calendar days, or until October 17, 2023, to regain
compliance with this requirement. The Company intends to monitor
the closing bid price of its common stock during the compliance
period and is considering its options to regain compliance with the
Nasdaq Capital Market minimum bid price requirement. The Company
can cure this deficiency if the closing bid price of its common
stock is $1.00 per share or higher for at least ten consecutive
business days during the grace period. In the event the Company
does not regain compliance within the grace period and meets all
other listing standards and requirements, the Company may be
eligible for an additional 180-day grace period. The Company
intends to cure the deficiency within the prescribed grace periods.
During this time, the Company's common stock will continue to be
listed and trade on the Nasdaq Capital Market. The Company's
business operations are not affected by the receipt of the
notification.
Fleet Employment Status (as of May 22,
2023) During the three months ended March 31, 2023, we
operated on average 22.0 vessels earning a Daily TCE
Rate(2) of $11,713 as compared to an average of
20.0 vessels earning a Daily TCE Rate(2) of
$20,502 during the same period in 2022.
Our current employment profile is presented immediately
below.
(2) Daily TCE Rate is not a recognized measure under U.S. GAAP.
Please refer to Appendix B for the definition and reconciliation of
this measure to Total vessel revenues, the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Dry Bulk Carriers |
Vessel Name |
Type |
DWT |
YearBuilt |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Magic Orion |
Capesize |
180,200 |
2006 |
Japan |
TC(1)period |
101% of BCI5TC(2) |
Jan-24 |
Apr-24 |
Magic Venus |
Kamsarmax |
83,416 |
2010 |
Japan |
TC period |
$18,000(3) |
Apr-24 |
Jul-24 |
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
TC period |
$14,000(4) |
Sep-23 |
Dec-23 |
Magic Argo |
Kamsarmax |
82,338 |
2009 |
Japan |
TC period |
103% of BPI5TC |
Apr-24 |
Jul-24 |
Magic Perseus |
Kamsarmax |
82,158 |
2013 |
Japan |
TC period |
100% of BPI5TC |
Sep-23 |
Dec-23 |
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
TC period |
$18,000(5) |
Nov-23 |
Feb-24 |
Magic Twilight |
Kamsarmax |
80,283 |
2010 |
Korea |
TC trip |
$13,000 |
Jun-23 |
Jun-23 |
Magic Nebula |
Kamsarmax |
80,281 |
2010 |
Korea |
TC period |
93% of BPI5TC |
May-23 |
Aug -23 |
Magic Nova |
Panamax |
78,833 |
2010 |
Japan |
TC period |
101% of BPI4TC(6) |
Sep-23 |
Dec-23 |
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
102% of BPI4TC |
Oct-23 |
Jan-24 |
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
TC period |
102% BPI4TC |
Aug-23 |
Nov-23 |
Magic Horizon |
Panamax |
76,619 |
2010 |
Japan |
TC period |
$15,300(7) |
Jun-23 |
Oct-23 |
Magic Moon |
Panamax |
76,602 |
2005 |
Japan |
TC period |
95% of BPI4TC |
Apr-23 |
Jul-23 |
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
$13,100(8) |
Oct-23 |
Jan-24 |
Magic Sun |
Panamax |
75,311 |
2001 |
Korea |
TC trip |
$9,000 |
May-23 |
May-23 |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
TC period |
87.5% of BPI5TC(9) |
Apr-23 |
Jul-23 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
100% BPI4TC |
Mar-24 |
Jun-24 |
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
100% of BPI4TC |
Dec-23 |
Mar-24 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
$15,000(10) |
Mar-24 |
Jun-24 |
|
Containerships |
Vessel Name |
Type |
DWT |
YearBuilt |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Ariana A |
Containership |
38,117 |
2005 |
Germany |
TC period |
$20,200 |
Jan-24 |
Mar-24 |
Gabriela A |
Containership |
38,121 |
2005 |
Germany |
TC period |
$26,350 |
Feb-24 |
May-24 |
(1) TC stands for time charter.(2) The benchmark
vessel used in the calculation of the average of the Baltic
Capesize Index (“BCI”) 5TC routes (“BCI5TC”) is a non-scrubber
fitted 180,000mt dwt vessel (Capesize) with specific age, speed –
consumption, and design characteristics. (3) The vessel’s daily
gross charter rate is equal to 100% of the Baltic Panamax Index 5TC
routes (“BPI5TC”). In accordance with the prevailing charter party,
, on March 29, 2023, the owners converted the index-linked rate to
fixed from April 1, 2023 to June 30, 2023 at a rate of $18,000 per
day. Upon completion of this period, the rate will be converted
back to index‑linked. The benchmark vessel used in the calculation
of the average of the BPI5TC routes is a non-scrubber fitted
82,000mt dwt vessel (Kamsarmax) with specific age, speed –
consumption, and design characteristics.(4) The vessel’s daily
gross charter rate is equal to 97% of BPI5TC. In accordance with
the prevailing charter party, on January 1, 2023 the owners
converted the index-linked rate to fixed from February 1, 2023
until June 30, 2023, at a rate of $14,000 per day. Upon completion
of this period, the rate will be converted back to index‑linked.(5)
The vessel’s daily gross charter rate is equal to 98% of BPI5TC. In
accordance with the prevailing charter party, on April 5, 2023 the
owners converted the index-linked rate to fixed from April 7, 2023
until September 30, 2023, at a rate of $18,000 per day. Upon
completion of this period, the rate will be converted back to
index‑linked.(6) The benchmark vessel used in the calculation of
the average of the BPI4TC routes is a non-scrubber fitted 74,000mt
dwt vessel (Panamax) with specific age, speed – consumption, and
design characteristics.(7) The vessel’s daily gross charter rate is
equal to 103% of BPI4TC. In accordance with the prevailing charter
party, on February 27, 2023, the owners converted the index-linked
rate to fixed from April 1, 2023 to June 30, 2023 at a rate of
$15,300 per day. Upon completion of this period, the rate will be
converted back to index‑linked.(8) The vessel’s daily gross charter
rate is equal to 96% of BPI4TC. In accordance with the prevailing
charter party, on January 16, 2023 the owners converted the
index-linked rate to fixed from February 1, 2023 until September
30, 2023, at a rate of $13,100 per day. Upon completion of this
period, the rate will be converted back to index‑linked.(9) After
redelivery from the current charter, estimated to take place
between April and July 2023 in accordance with the prevailing
charterparty terms, the vessel has been fixed for a period of
minimum 12 to maximum 15 months, at a daily gross charter rate
equal to 95% of BPI4TC.(10) The vessel’s daily gross charter rate
is equal to 101% of BPI4TC. In accordance with the prevailing
charter party, on February 27, 2023, the owners converted the
index-linked rate to fixed from April 1, 2023 to June 30, 2023 at a
rate of $15,000 per day. Upon completion of this period, the rate
will be converted back to index‑linked.
Financial Results Overview of Continuing
Operations:
Set forth below are selected financial data of
our dry bulk and containerships fleets (continuing operations) for
each of the three months ended March 31, 2023 and 2022,
respectively:
|
Three Months Ended |
(Expressed in U.S.
dollars) |
|
March 31, 2023(unaudited) |
|
March 31, 2022(unaudited) |
Total vessel revenues |
$ |
24,468,970 |
|
$ |
37,810,865 |
|
Operating income |
$ |
3,145,575 |
|
$ |
19,969,490 |
|
Net (loss)/income, net of
taxes |
$ |
(6,510,038 |
) |
$ |
18,456,712 |
|
EBITDA(1) |
$ |
1,614,446 |
|
$ |
24,241,011 |
|
Adjusted EBITDA(1) |
$ |
9,310,034 |
|
$ |
24,241,011 |
|
(Loss)/Earnings (basic) per
common share |
$ |
(0.07 |
) |
$ |
0.20 |
|
(1) EBITDA and Adjusted EBITDA are not
recognized measures under U.S. GAAP. Please refer to Appendix B of
this release for the definition and reconciliation of these
measures to Net (loss)/income, the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Consolidated Fleet Selected Financial
and Operational Data:
Set forth below are selected financial and
operational data of our dry bulk and containership fleets
(continuing operations) for each of the three months ended March
31, 2023 and 2022, respectively, that we believe are useful in
analyzing trends in our results of operations.
|
|
Three Months EndedMarch 31, |
(Expressed in U.S. dollars except for operational
data) |
|
2023 |
|
|
2022 |
|
Ownership Days (1)(7) |
|
1,980 |
|
|
1,796 |
|
Available Days (2)(7) |
|
1,980 |
|
|
1,796 |
|
Operating Days (3)(7) |
|
1,980 |
|
|
1,781 |
|
Daily TCE Rate (4) |
$ |
11,713 |
|
$ |
20,502 |
|
Fleet Utilization (5) |
|
100% |
|
|
99% |
|
Daily vessel operating
expenses (6) |
$ |
5,691 |
|
$ |
5,639 |
|
(1) Ownership Days are the total number of calendar days in a
period during which we owned a vessel. (2) Available Days are the
Ownership Days in a period less the aggregate number of days our
vessels are off-hire due to scheduled repairs, dry-dockings or
special or intermediate surveys.(3) Operating Days are the
Available Days in a period after subtracting unscheduled off-hire
and idle days.(4) Daily TCE Rate is not a recognized measure under
U.S. GAAP. Please refer to Appendix B for the definition and
reconciliation of this measure to Total vessel revenues, the most
directly comparable financial measure calculated and presented in
accordance with U.S. GAAP.(5) Fleet Utilization is calculated by
dividing the Operating Days during a period by the number of
Available Days during that period.(6) Daily vessel operating
expenses are calculated by dividing vessel operating expenses for
the relevant period by the Ownership Days for such period.(7) Our
definitions of Ownership Days, Available Days, Operating Days,
Fleet Utilization may not be comparable to those reported by other
companies.
APPENDIX A
CASTOR MARITIME
INC.Unaudited Condensed Consolidated Statements of
Comprehensive Income(Expressed in U.S.
Dollars—except for number of share data)
(In U.S. dollars except for
number of share data) |
|
Three Months EndedMarch 31, |
|
|
2023 |
|
2022 |
REVENUES |
|
|
|
|
Total vessel revenues |
$ |
24,468,970 |
|
$ |
37,810,865 |
|
EXPENSES |
|
|
|
|
Voyage expenses (including
commissions to related party) |
|
(1,277,085 |
) |
|
(989,454 |
) |
Vessel operating expenses |
|
(11,267,683 |
) |
|
(10,127,405 |
) |
General and administrative
expenses (including related party fees) |
|
(1,134,664 |
) |
|
(921,707 |
) |
Management fees - related
parties |
|
(1,831,500 |
) |
|
(1,530,000 |
) |
Depreciation and
amortization |
|
(5,812,463 |
) |
|
(4,272,809 |
) |
Operating income |
$ |
3,145,575 |
|
$ |
19,969,490 |
|
Interest and finance costs,
net (including related party interest costs)(1) |
|
(2,289,115 |
) |
|
(1,424,409 |
) |
Other expenses, net |
|
(7,343,592 |
) |
|
(1,288 |
) |
Income taxes |
|
(22,906 |
) |
|
(87,081 |
) |
Net (loss)/income and comprehensive (loss)/income from
continuing operations, net of taxes |
$ |
(6,510,038 |
) |
$ |
18,456,712 |
|
Net income and
comprehensive income fromdiscontinued operations,
net of taxes |
$ |
17,339,332 |
|
|
1,519,576 |
|
Net income and comprehensive income |
$ |
10,829,294 |
|
|
19,976,288 |
|
(Loss)/ Earnings per
common share, basic and diluted,continuing
operations |
$ |
(0.07 |
) |
$ |
0.20 |
|
Earnings per common
share, basic and diluted,discontinued
operations |
$ |
0.18 |
|
$ |
0.02 |
|
Earnings per common
share, basic and diluted,total |
$ |
0.11 |
|
$ |
0.21 |
|
Weighted average number of
common shares outstanding, basic and diluted: |
|
94,610,088 |
|
|
94,610,088 |
|
(1) Includes interest and finance costs and interest
income, if any.
CASTOR MARITIME INC.Unaudited Condensed
Consolidated Balance
Sheets(Expressed in U.S. Dollars—except for number
of share data)
|
|
March 31,2023 |
|
December 31,2022 |
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
63,091,223 |
|
$ |
100,593,557 |
|
Restricted cash |
|
1,935,357 |
|
|
1,684,269 |
|
Due from related parties |
|
3,533,737 |
|
|
2,437,354 |
|
Assets held for sale |
|
18,369,707 |
|
|
— |
|
Other current assets |
|
30,902,652 |
|
|
6,762,778 |
|
Current assets of discontinued
operations |
|
— |
|
|
54,763,308 |
|
Total current assets |
|
117,832,676 |
|
|
166,241,266 |
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
Vessels, net |
|
321,094,715 |
|
|
343,408,466 |
|
Restricted cash |
|
7,505,000 |
|
|
7,550,000 |
|
Due from related parties |
|
3,198,586 |
|
|
3,514,098 |
|
Investment in related
party |
|
117,319,357 |
|
|
— |
|
Other non-currents assets |
|
6,371,670 |
|
|
9,491,322 |
|
Non-Current assets of
discontinued operations |
|
— |
|
|
102,715,796 |
|
Total non-current
assets |
|
455,489,328 |
|
|
466,679,682 |
|
Total assets |
|
573,322,004 |
|
|
632,920,948 |
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Current portion of long-term
debt, net |
|
24,144,747 |
|
|
29,170,815 |
|
Debt related to assets held
for sale, net |
|
9,904,156 |
|
|
— |
|
Other current liabilities |
|
8,403,669 |
|
|
15,671,903 |
|
Current liabilities of
discontinued operations |
|
— |
|
|
6,519,051 |
|
Total current liabilities |
|
42,452,572 |
|
|
51,361,769 |
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
Long-term debt, net |
|
96,464,510 |
|
|
109,600,947 |
|
Non-Current liabilities of
discontinued operations |
|
— |
|
|
10,463,172 |
|
Total non-current
liabilities |
|
96,464,510 |
|
|
120,064,119 |
|
Total liabilities |
|
138,917,082 |
|
|
171,425,888 |
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 94,610,088 shares issued
and outstanding as of March 31, 2023 and December 31, 2022 |
|
94,610 |
|
|
94,610 |
|
Series B Preferred Shares-
12,000 shares issued and outstanding as of March 31, 2023 and
December 31, 2022 |
|
12 |
|
|
12 |
|
Additional paid-in
capital |
|
265,738,721 |
|
|
303,658,153 |
|
Retained Earnings |
|
168,571,579 |
|
|
157,742,285 |
|
Total shareholders’ equity |
|
434,404,922 |
|
|
461,495,060 |
|
Total liabilities and shareholders’ equity |
$ |
573,322,004 |
|
$ |
632,920,948 |
|
|
|
|
|
|
|
|
CASTOR MARITIME
INC.Unaudited Consolidated Statements of Cash
Flows
(Expressed in U.S.
Dollars) |
Three months Ended March 31, |
|
|
2023 |
|
2022 |
Cash Flows (used in)/
provided by Operating Activities ofcontinuing
operations: |
|
|
|
|
Net income |
$ |
10,829,294 |
|
$ |
19,976,288 |
|
Net income from discontinued
operations, net of taxes |
|
17,339,332 |
|
|
1,519,576 |
|
Net (loss)/ income from
continuing operations, net of taxes |
|
(6,510,038 |
) |
|
18,456,712 |
|
Adjustments to
reconcile net (loss)/ income from continuing operations to net cash
(used in)/ provided by Operating Activities: |
|
|
|
|
Depreciation and
amortization |
|
5,812,463 |
|
|
4,272,809 |
|
Amortization of deferred
finance charges |
|
186,151 |
|
|
185,994 |
|
Amortization of fair value of
acquired time charters |
|
1,026,959 |
|
|
— |
|
Realized gain on sale of
equity securities |
|
(2,636 |
) |
|
— |
|
Unrealized loss on equity
securities |
|
7,695,588 |
|
|
— |
|
Dividend income on equity
securities |
|
(313,716 |
) |
|
— |
|
Dividend income from related
party |
|
(97,222 |
) |
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
Accounts receivable trade,
net |
|
(195,435 |
) |
|
316,042 |
|
Inventories |
|
180,445 |
|
|
(1,935,431 |
) |
Due from/to related
parties |
|
(656,726 |
) |
|
(3,795,006 |
) |
Prepaid expenses and other
assets |
|
(124,161 |
) |
|
(232,941 |
) |
Other deferred charges |
|
51,138 |
|
|
(122,806 |
) |
Accounts payable |
|
(3,595,122 |
) |
|
1,108,178 |
|
Accrued liabilities |
|
(1,382,673 |
) |
|
332,041 |
|
Deferred revenue |
|
(782,933 |
) |
|
(949,362 |
) |
Dry-dock costs paid |
|
(1,315,024 |
) |
|
(537,430 |
) |
Net Cash (used
in)/provided by Operating Activities from continuing
operations |
|
(22,942 |
) |
|
17,098,800 |
|
|
|
|
|
|
Cash flow (used
in)/provided by Investing Activities of continuing
operations: |
|
|
|
|
Vessel acquisitions (including
time charters acquired) and other vessel improvements |
|
(204,763 |
) |
|
(22,400,364 |
) |
Purchase of equity
securities |
|
(31,742,081 |
) |
|
— |
|
Dividends received on equity
securities |
|
313,716 |
|
|
— |
|
Proceeds from sale of equity
securities |
|
258,999 |
|
|
— |
|
Net cash used in
Investing Activities from continuing operations |
|
(31,374,129 |
) |
|
(22,400,364 |
) |
|
|
|
|
|
Cash flows (used in)/
provided by Financing Activities of continuing
operations: |
|
|
|
|
Common stock issuance
expenses |
|
— |
|
|
(65,797 |
) |
Proceeds from long-term
debt |
|
— |
|
|
55,000,000 |
|
Repayment of long-term
debt |
|
(8,444,500 |
) |
|
(3,409,500 |
) |
Payment of deferred financing
costs |
|
(25,178 |
) |
|
(700,578 |
) |
Proceeds received from Toro
related to Spin-Off |
|
2,570,503 |
|
|
— |
|
Net cash (used in)/
provided by Financing Activities from continuing
operations |
|
(5,899,175 |
) |
|
50,824,125 |
|
|
|
|
|
|
Cash flows of
discontinued operations: |
|
|
|
|
Net cash provided by /(used in)
Operating Activities from discontinued operations |
|
20,409,041 |
|
|
(4,035,029 |
) |
Net cash used in Investing
Activities from discontinued operations |
|
(153,861 |
) |
|
(62,383 |
) |
Net cash used in Financing
Activities from discontinued operations |
|
(62,734,774 |
) |
|
(850,000 |
) |
Net cash used in from
discontinued operations |
|
(42,479,594 |
) |
|
(4,947,412 |
) |
|
|
|
|
|
Net
(decrease)/increase in cash, cash equivalents, and restricted
cash |
|
(79,775,840 |
) |
|
40,575,149 |
|
Cash, cash equivalents
and restricted cash at the beginning of the period |
|
152,307,420 |
|
|
43,386,468 |
|
Cash, cash equivalents
and restricted cash at the end of the period |
$ |
72,531,580 |
|
$ |
83,961,617 |
|
|
|
|
|
|
|
|
APPENDIX B
Non-GAAP Financial
Information
Daily Time Charter (“TCE”)
Rate. The Daily Time Charter Equivalent Rate (“Daily TCE
Rate”) is a measure of the average daily revenue performance of a
vessel. The Daily TCE Rate is not a measure of financial
performance under U.S. GAAP (non-GAAP measure) and should not be
considered as an alternative to any measure of financial
performance presented in accordance with U.S. GAAP. We calculate
Daily TCE Rate by dividing total revenues (time charter and/or
voyage charter revenues, and/or pool revenues, net of charterers’
commissions), less voyage expenses, by the number of Available Days
during that period. Under a time charter, the charterer pays
substantially all the vessel voyage related expenses. However, we
may incur voyage related expenses when positioning or repositioning
vessels before or after the period of a time or other charter,
during periods of commercial waiting time or while off-hire during
dry-docking or due to other unforeseen circumstances. Under voyage
charters, the majority of voyage expenses are generally borne by us
whereas for vessels in a pool, such expenses are borne by the pool
operator. The Daily TCE Rate is a standard shipping industry
performance measure used primarily to compare period-to-period
changes in a company’s performance and, management believes that
the Daily TCE Rate provides meaningful information to our investors
since it compares daily net earnings generated by our vessels
irrespective of the mix of charter types (i.e., time charter,
voyage charter, or other) under which our vessels are employed
between the periods while it further assists our management in
making decisions regarding the deployment and use of our vessels
and in evaluating our financial performance. Our calculation of the
Daily TCE Rates may not be comparable to that reported by other
companies. The following table reconciles the calculation of the
Daily TCE Rate for our dry bulk and containership fleet (continuing
operations) to Total vessel revenues (from continuing operations)
for the periods presented (amounts in U.S. dollars, except for
Available Days):
|
Three Months Ended March 31, |
(In U.S. dollars, except for
Available Days) |
|
2023 |
|
2022 |
Total vessel revenues |
$ |
24,468,970 |
|
$ |
37,810,865 |
|
Voyage expenses -including
commissions from related party |
|
(1,277,085 |
) |
|
(989,454 |
) |
TCE revenues |
$ |
23,191,885 |
|
$ |
36,821,411 |
|
Available Days |
|
1,980 |
|
|
1,796 |
|
Daily TCE Rate |
$ |
11,713 |
|
$ |
20,502 |
|
|
|
|
|
|
|
|
EBITDA. EBITDA is not a measure
of financial performance under U.S. GAAP, does not represent and
should not be considered as an alternative to net income, operating
income, cash flow from operating activities or any other measure of
financial performance presented in accordance with U.S. GAAP. We
define EBITDA as earnings before interest and finance costs (if
any), net of interest income, taxes (when incurred), depreciation
and amortization of deferred dry-docking costs. EBITDA is used as a
supplemental financial measure by management and external users of
financial statements to assess our operating performance. We
believe that EBITDA assists our management by providing useful
information that increases the comparability of our operating
performance from period to period and against the operating
performance of other companies in our industry that provide EBITDA
information. This increased comparability is achieved by excluding
the potentially disparate effects between periods or companies of
interest, other financial items, depreciation and amortization and
taxes, which items are affected by various and possibly changing
financing methods, capital structure and historical cost basis and
which items may significantly affect net income between periods. We
believe that including EBITDA as a measure of operating performance
benefits investors in (a) selecting between investing in us and
other investment alternatives and (b) monitoring our ongoing
financial and operational strength. EBITDA as presented below may
not be comparable to similarly titled measures of other companies.
Adjusted EBITDA represents EBITDA adjusted to exclude unrealized
loss on equity securities, which the Company believes are not
indicative of the ongoing performance of its core operations.
The following table reconciles EBITDA and
Adjusted EBITDA to Net (loss) / income from continuing operations,
the most directly comparable U.S. GAAP financial measure, for the
periods presented:
|
|
Three Months Ended March 31, |
(In U.S. dollars) |
|
2023 |
|
2022 |
Net (Loss) / Income from continuing operations, net of
taxes |
$ |
(6,510,038 |
) |
$ |
18,456,712 |
|
Depreciation and
amortization |
|
5,812,463 |
|
|
4,272,809 |
|
Interest and finance costs,
net (including related party interest costs)(1) |
|
2,289,115 |
|
|
1,424,409 |
|
US source income taxes |
|
22,906 |
|
|
87,081 |
|
EBITDA |
$ |
1,614,446 |
|
$ |
24,241,011 |
|
Unrealized loss on equity securities |
|
7,695,588 |
|
|
— |
|
Adjusted EBITDA |
$ |
9,310,034 |
|
$ |
24,241,011 |
|
(1) Includes interest and finance costs and interest income, if
any.
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may
constitute forward-looking statements. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended (the “Securities Act”)
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts. We are including
this cautionary statement in connection with this safe harbor
legislation. The words “believe”, “anticipate”, “intend”,
“estimate”, “forecast”, “project”, “plan”, “potential”, “will”,
“may”, “should”, “expect”, “pending” and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management’s examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these forward-looking statements, including these
expectations, beliefs or projections. In addition to these
important factors, other important factors that, in our view, could
cause actual results to differ materially from those discussed in
the forward‐looking statements include the effects of the spin-off
of our tanker business, our business strategy, shipping markets
conditions and trends, the rapid growth of our fleet, our
relationships with our current and future service providers and
customers, our ability to borrow under existing or future debt
agreements or to refinance our debt on favorable terms and our
ability to comply with the covenants contained therein, our
continued ability to enter into time or voyage charters with
existing and new customers and to re-charter our vessels upon the
expiry of the existing charters, changes in our operating and
capitalized expenses, our ability to fund future capital
expenditures and investments in the acquisition and refurbishment
of our vessels, instances of off-hire, future sales of our
securities in the public market and our ability to maintain
compliance with applicable listing standards, volatility in our
share price, potential conflicts of interest involving members of
our board of directors, senior management and certain of our
service providers that are related parties, general domestic and
international political conditions or events (including “trade
wars”, global public health threats and major outbreaks of
disease), changes in seaborne and other transportation, changes in
governmental rules and regulations or actions taken by regulatory
authorities, and the impact of adverse weather and natural
disasters. The information set forth herein speaks only as of the
date hereof, and we disclaim any intention or obligation to update
any forward looking statements as a result of developments
occurring after the date of this communication, except to the
extent required by applicable law. New factors emerge from time to
time, and it is not possible for us to predict all or any of these
factors. Further, we cannot assess the impact of each such factor
on our business or the extent to which any factor, or combination
of factors, may cause actual results to be materially different
from those contained in any forward-looking statement. Please see
our filings with the Securities and Exchange Commission for a more
complete discussion of these foregoing and other risks and
uncertainties. These factors and the other risk factors described
in this press release are not necessarily all of the important
factors that could cause actual results or developments to differ
materially from those expressed in any of our forward-looking
statements. Given these uncertainties, prospective investors are
cautioned not to place undue reliance on such forward-looking
statements.
CONTACT DETAILS For further
information please contact:
Petros PanagiotidisChief Executive Officer &
Chief Financial Officer Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital LinkEmail:
castormaritime@capitallink.com
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