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, 2024.
Earnings Highlights of the First Quarter
Ended March 31, 2024:
- Total vessel revenues from
continuing operations: $20.4 million for the three months ended
March 31, 2024, as compared to $24.5 million for the three months
ended March 31, 2023, or a 16.7% decrease;
- Net income from continuing
operations of $22.3 million for the three months ended March 31,
2024, as compared to net loss from continuing operations of $(6.5)
million for the three months ended March 31, 2023, or a 443.1%
increase;
- Net income of $22.3 million
for the three months ended March 31, 2024, as compared to net
income of $10.8 million for the three months ended March 31, 2023,
or a 106.5% increase;
- Earnings / (loss) per
common share, basic from continuing operations: $2.23 per share for
the three months ended March 31, 2024, as compared to $(0.69) per
share for the three months ended March 31, 2023;
- EBITDA from continuing
operations(1): $26.8 million for
the three months ended March 31, 2024, as compared to $1.6 million
for the three months ended March 31, 2023;
- Adjusted EBITDA from
continuing operations(1): $16.9
million for the three months ended March 31, 2024, as compared to
$9.3 million for the three months ended March 31,
2023;
- Cash and restricted cash
from continuing operations of $165.2 million as of March 31, 2024,
as compared to $120.9 million as of December 31,
2023.
(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 income /
(loss), the most directly comparable financial measure calculated
and presented in accordance with U.S. GAAP.
Management Commentary First Quarter
2024:
Mr. Petros Panagiotidis, Chief Executive Officer
of Castor commented:
“In the first quarter of 2024 we observed a
recovery in the dry cargo market, which, along with a number of
vessel sales announced in earlier months, resulted in robust cash
flows for the quarter.
“In April, in order to provide greater clarity
as to our capital structure, we launched a tender offer for the
vast majority of our outstanding warrants. This follows a number of
private purchases that we completed in the fourth quarter in 2023
for the warrants subject of this tender offer, as well as other
warrants outstanding at the time.
“We enjoy a strong balance sheet and we remain
committed to our growth trajectory by seeking further opportunities
in the shipping space, including opportunities to modernize our
fleet.”
Earnings Commentary:
First Quarter ended March 31, 2024, and
2023 Results
Total vessel revenues from continuing operations
for the three months ended March 31, 2024, decreased to $20.4
million from $24.5 million in the same period of 2023. This
variation was mainly driven by the decrease in our Available Days
(defined below) from 1,980 days in the three months ended March 31,
2023, to 1,441 days in the three months ended March 31, 2024,
following the sale of three dry bulk vessels during the three
months ended March 31, 2024 and the sale of five dry bulk vessels
from the second to fourth quarters of 2023. This decrease in
Available Days was partially offset by an increase in prevailing
charter rates of our dry bulk vessels.
There was a decrease in voyage expenses from
continuing operations to $1.1 million in the three months ended
March 31, 2024, from $1.3 million in the same period of 2023, which
was mainly associated with a decrease in bunkers consumption.
Vessel operating expenses from continuing
operations decreased by $3.2 million to $8.1 million in the three
months ended March 31, 2024 from $11.3 million in the same period
of 2023, mainly reflecting the decrease in the Ownership Days of
our fleet to 1,441 days in the three months ended March 31, 2024,
from 1,980 days in the same period in 2023.
Management fees for continuing operations in the
three months ended March 31, 2024, amounted to $1.4 million,
whereas in the same period of 2023, management fees totaled $1.8
million. This decrease in management fees is due to the decrease in
the total number of Ownership Days for which our managers charge us
a daily management fee following the sales of the dry bulk vessels
mentioned above, partly offset by the management fee adjustment for
inflation under our Amended and Restated Master Management
Agreement, with effect from July 1, 2023.
The decrease in depreciation and amortization
costs by $1.9 million to $3.9 million in the three months ended
March 31, 2024, from $5.8 million in the same period of 2023,
mainly reflects the decrease in our Ownership Days following the
sale of three dry bulk vessels during the three months ended March
31, 2024 and the sale of five dry bulk vessels from the second to
fourth quarters of 2023.
General and administrative expenses from
continuing operations in the three months ended March 31, 2024,
amounted to $1.9 million, whereas, in the same period of 2023,
general and administrative expenses totaled $1.1 million. This
increase mainly stemmed from higher professional fees during the
period.
Gain on sale of vessels from continuing
operations in the three months ended March 31, 2024, amounted to
$7.9 million following the sales of: (i) M/V Magic Moon on January
16, 2024, (ii) M/V Magic Nova on March 11, 2024 and (iii) M/V Magic
Orion on March 22, 2024.
During the three months ended March 31, 2024, we
incurred net interest costs and finance costs from continuing
operations amounting to $0.6 million compared to $2.3 million
during the same period in 2023. The decrease is due to the drop in
our weighted average indebtedness, as well as an increase in
interest income we earned from our time and cash deposits, due to
increased interest rates, as partially offset by a higher weighted
average interest rate in our borrowings, as a result of the
increase in the variable benchmark rates during the three months
ended March 31, 2024, as compared with the same period of 2023.
Other income, net from continuing operations in
the three months ended March 31, 2024, amounted to $11.1 million,
which includes (i) an unrealized gain of $9.9 million from
revaluing our investments in listed equity securities at period end
market rates, (ii) dividend income on equity securities of $0.8
million and (iii) dividend income of $0.4 million from our
investment in 140,000 1.00% Series A Fixed Rate Cumulative
Perpetual Convertible Preferred Shares of Toro (the “Toro Series A
Preferred Shares”). Other expenses, net in the three months ended
March 31, 2023 amounted to $7.3 million and mainly included (i) an
unrealized loss of $7.7 million from revaluing our investments in
listed equity securities at period end market rates, (ii) dividend
income on equity securities of $0.3 million and (iii) dividend
income of $0.1 million from our investment in the Toro Series A
Preferred Shares.
Recent
Financial Developments
Commentary:
Warrants tender offer
On April 22, 2024, we commenced a tender offer
(the “Offer”) to purchase all of our outstanding Common Share
Purchase Warrants issued on April 7, 2021 (the “Warrants”) at a
price of $0.105 per Warrant, net to the seller in cash, without
interest. Payments made pursuant to the Offer will be rounded down
to the nearest whole cent. The purpose of the Offer is to reduce
the number of shares that would become outstanding upon the
exercise of the Warrants, thereby providing investors and potential
investors with greater clarity as to our capital structure. The
Offer will expire at the end of the day, 5:00 P.M., Eastern time,
on Friday, May 31, 2024, unless extended. The Warrants are
exercisable in the aggregate into 1,033,077 of our common shares,
par value $0.001 per share (the “warrant shares”), at an exercise
price per warrant share of $55.30. The number of warrant shares and
this exercise price reflect adjustments as a result of the 1-for-10
reverse stock split discussed above.
Liquidity/ Financing/Cash flow
update
Our consolidated cash position (including our
restricted cash) from continuing operations as of March 31, 2024,
increased by $44.3 million to $165.2 million, as compared to our
cash position on December 31, 2023, which amounted to $120.9
million. The increase was mainly the result of: (i) $11.3 million
of net operating cash flows received during the three months ended
March 31, 2024, (ii) $43.8 million inflow of net proceeds from the
sales of the M/V Magic Moon, M/V Magic Nova and M/V Magic Orion and
from advance deposits of $4.95 million received relating to the
sale of the M/V Magic Nebula, M/V Magic Venus and M/V Magic
Horizon, offset by $3.8 million of cash outflow from the purchase
of equity securities, (iii) $0.6 million of dividends paid on the
Series D Preferred Shares and (iv) $11.4 million for scheduled
principal repayments and early prepayments due to sale of vessels,
on our debt.
As of March 31, 2024, our total debt from
continuing operations, gross of unamortized deferred loan fees, was
$75.2 million, of which $26.6 million is repayable within one year,
as compared to $86.6 million of gross total debt as of December 31,
2023, a decline mainly due to prepayments in connection with vessel
dispositions.
Recent
Business Developments
Commentary:
Nasdaq Listing Standards Compliance
Update
On April 20, 2023, we received a notification
from the Nasdaq Stock Market (“Nasdaq”) that the Company was not in
compliance with the minimum $1.00 per share bid price requirement
for continued listing on the Nasdaq Capital Market and we were
provided with 180 calendar days to regain compliance with the
Nasdaq Capital Market minimum bid price requirement. On October 19,
2023, we announced that we received a notification letter on
October 18, 2023 from the Nasdaq granting us an additional 180-day
extension to April 15, 2024 to regain compliance with Nasdaq’s
minimum bid price requirement. On March 27, 2024, we effected a
1-for-10 reverse stock split of our common stock for the purpose of
regaining compliance with the Nasdaq minimum bid price requirement
pursuant to the authority granted to our board of directors by our
shareholders. As a result of the reverse stock split, the number of
outstanding shares was decreased to 9,662,354 common shares as of
March 27, 2024, while the par value of our common shares remained
unchanged at $0.001 per share. On April 11, 2024, we received
written confirmation from Nasdaq that we had regained compliance
with Nasdaq Listing Rule 5550(a)(2).
All share and per share amounts, as well as
warrant shares eligible for purchase under the Company’s effective
warrant schemes have been retroactively adjusted to reflect the
reverse stock split.
Vessel Sales
On November 10, 2023, we entered into an
agreement with an unaffiliated third party for the sale of the M/V
Magic Moon, a 2005-built Panamax, at a price of $11.8 million. The
vessel was delivered to its new owners on January 16, 2024. We
recognized during the first quarter of 2024 a net gain on the sale
of the M/V Magic Moon of approximately $2.4 million.
On December 7, 2023, we entered into an
agreement with an unaffiliated third party for the sale of the M/V
Magic Orion, a 2006-built Capesize, at a price of $17.4 million.
The vessel was delivered to its new owners on March 22, 2024. We
recognized during the first quarter of 2024 a net gain on the sale
of the M/V Magic Orion of approximately $1.4 million.
On December 21, 2023, we entered into an
agreement with an entity affiliated with a family member of our
Chairman, Chief Executive Officer and Chief Financial Officer for
the sale of the M/V Magic Venus, a 2010-built Kamsarmax, at a price
of $17.5 million. The terms of the transaction were negotiated and
approved by a special committee of our disinterested and
independent directors. The vessel was delivered to its new owners
on May 10, 2024. We expect to recognize during the second quarter
of 2024 a net gain of approximately $3.5 million, excluding any
transaction-related costs.
On January 19, 2024, we entered into an
agreement with an entity beneficially owned by a family member of
our Chairman, Chief Executive Officer and Chief Financial Officer
for the sale of the M/V Magic Horizon, a 2010-built Panamax, at a
price of $15.8 million. The terms of the transaction were
negotiated and approved by a special committee of our disinterested
and independent directors. The vessel is expected to be delivered
to its new owners during the second quarter of 2024. We expect to
recognize during the second quarter of 2024 a net gain of
approximately $4.6 million, excluding any transaction-related
costs.
On January 19, 2024, we entered into an
agreement with an entity beneficially owned by a family member of
our Chairman, Chief Executive Officer and Chief Financial Officer
for the sale of the M/V Magic Nova, a 2010-built Panamax, at a
price of $16.1 million. The terms of the transaction were
negotiated and approved by a special committee of our disinterested
and independent directors. The vessel was delivered to its new
owners on March 11, 2024. We recognized during the first quarter of
2024 a net gain of approximately $4.1 million.
On February 15, 2024, we entered into an
agreement with an entity affiliated with a family member of our
Chairman, Chief Executive Officer and Chief Financial Officer for
the sale of the M/V Magic Nebula, a 2010-built
Kamsarmax, at a price of $16.2 million. The terms of the
transaction were negotiated and approved by a special committee of
our disinterested and independent directors. The vessel was
delivered to its new owners on April 18, 2024. We expect to
recognize during the second quarter of 2024 a net gain of
approximately $2.5 million, excluding any transaction-related
costs.
On May 1, 2024, we entered into an agreement
with an unaffiliated third party for the sale of the M/V Magic
Vela, a 2011-built Panamax, at a price of $16.4 million. The vessel
is expected to be delivered to its new owners during the second
quarter of 2024. We expect to recognize during the second quarter
of 2024 a net gain of approximately $2.7 million, excluding any
transaction-related costs.
Fleet Employment Status (as of May 15,
2024)
During the three months ended March 31, 2024, we
operated on average 15.8 vessels earning a Daily TCE
Rate(2) of $13,411 as compared to an average of
22.0 vessels earning a Daily TCE Rate(2) of
$11,713 during the same period in 2023.
Our employment profile as of May 15, 2024 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 |
Capacity (dwt) |
Year Built |
Country of Construction |
Type of Employment(1) |
Daily Gross Charter Rate |
Estimated Redelivery Date |
|
Earliest |
Latest |
|
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
TC period |
$16,200 per day(3) |
Sep-24 |
-(11) |
|
Magic Perseus |
Kamsarmax |
82,158 |
2013 |
Japan |
TC period |
$16,300 per day(4) |
Sep-24 |
-(11) |
|
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
TC period |
$14,600 per day(5) |
Jun-24 |
-(12) |
|
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
$14,750 per day(6) |
May-24 |
-(12) |
|
Magic Horizon (2) |
Panamax |
76,619 |
2010 |
Japan |
TC period |
$17,450 per day (7) |
Mar-24 |
-(13) |
|
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
$15,150 per day(8) |
May-24 |
-(12) |
|
Magic Vela(2) |
Panamax |
75,003 |
2011 |
China |
TC period |
95% of BPI4TC (9) |
May-24 |
Aug-24 |
|
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
100% of BPI4TC |
May-24 |
Aug-24 |
|
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
$18,150 per day (10) |
Sep-24 |
-(11) |
|
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
101% BPI4TC |
Apr-24 |
Jul-24 |
|
|
|
Containerships |
|
Vessel Name |
Type |
Capacity (dwt) |
YearBuilt |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate ($/day) |
Estimated Redelivery Date |
|
Earliest |
Latest |
|
Ariana A |
Containership |
38,117 |
2005 |
Germany |
TC period |
$16,000 |
May-24 |
Jun-24(14) |
|
Gabriela A |
Containership |
38,121 |
2005 |
Germany |
TC period |
$17,000 |
Feb-25 |
May-25 |
|
(1) |
|
TC stands for time charter. |
| (2) |
|
We agreed to sell the M/V Magic Horizon and M/V Magic Vela on
January 19, 2024, and May 1, 2024, respectively. The vessels are
still employed under their existing charter parties and are each
expected to be delivered to their new owners during the second
quarter of 2024. |
| (3) |
|
The vessel’s daily gross charter rate is equal to 97% of
BPI5TC(15). In accordance with the prevailing charter party, on
January 19, 2024, we converted the index-linked rate to fixed from
April 1, 2024 until June 30, 2024 at a rate of $16,200 per day.
Thereafter, the rate will be converted back to index-linked. |
| (4) |
|
The vessel’s daily gross charter rate is equal to 100% of BPI5TC.
In accordance with the prevailing charter party, on January 17,
2024, we converted the index-linked rate to fixed from April 1,
2024, until June 30, 2024, at a rate of $16,300 per day.
Thereafter, 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 January 12, 2024,
we converted the index-linked rate to fixed from April 1, 2024
until June 30, 2024 at a rate of $14,600 per day. Thereafter, the
rate will be converted back to index-linked. |
| (6) |
|
The vessel’s daily gross charter rate is equal to 102% of BPI4TC.
In accordance with the prevailing charter party, on January 16,
2024, we converted the index-linked rate to fixed from April 1,
2024 until June 30, 2024 at a rate of $14,750 per day. Thereafter,
the rate will be converted back to index-linked. |
| (7) |
|
The vessel’s daily gross charter rate is equal to 103% of BPI4TC.
In accordance with the prevailing charter party, on February 27,
2024, we converted the index-linked rate to fixed from April 1,
2024 until June 30, 2024 at a rate of $17,450 per day. Thereafter,
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 February 6, 2024,
we converted the index-linked rate to fixed from April 1, 2024,
until September 30, 2024, at a rate of $15,150 per day. Upon
completion of these periods, the rate will be converted back to
index‑linked rate. |
| (9) |
|
The benchmark vessel used in the calculation of the average of the
Baltic Panamax Index 4TC routes (“BPI4TC”) is a non-scrubber fitted
74,000mt dwt vessel (Panamax) with specific age, speed –
consumption, and design characteristics. |
| (10) |
|
The vessel’s daily gross charter rate is equal to 100% of BPI4TC.
In accordance with the prevailing charter party, on March 1, 2024,
we converted the index-linked rate to fixed from April 1, 2024
until June 30, 2024 at a rate of $18,150 per day. Upon completion
of this period, the rate will be converted back to index‑linked
rate. |
| (11) |
|
The earliest redelivery under the prevailing charter party is 9
months after delivery. Thereafter, both we and the charterers have
the option to terminate the charter by providing 3 months written
notice to the other party. |
| (12) |
|
The earliest redelivery under the prevailing charter party is 7
months after delivery. Thereafter, both we and the charterers have
the option to terminate the charter by providing 3 months written
notice to the other party. |
| (13) |
|
The earliest redelivery under the prevailing charter party is 8
months after delivery. Thereafter, both we and the charterers have
the option to terminate the charter by providing 3 months written
notice to the other party. |
| (14) |
|
On April 9, 2024, it has been agreed that the employment of the
vessel will be extended with its current charterer from June 30,
2024, at a rate of $18,000 per day. Upon the commencement of the
extension period, the vessel’s new earliest redelivery will be June
30, 2025 and latest redelivery will be August 31, 2025. |
| (15) |
|
The benchmark vessel used in the calculation of the average of the
Baltic Panamax Index 5TC routes (“BPI5TC”) is a non-scrubber fitted
82,000mt dwt vessel (Kamsarmax) with specific age,
speed–consumption, and design characteristics. |
| |
|
|
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, 2024, and 2023,
respectively:
| |
Three Months Ended |
| (Expressed in U.S.
dollars) |
|
March 31, 2024 (unaudited) |
|
|
March 31, 2023 (unaudited) |
|
Total vessel revenues |
$ |
20,390,247 |
|
$ |
24,468,970 |
|
| Operating income |
$ |
11,887,666 |
|
$ |
3,145,575 |
|
| Net income / (loss), net of
taxes |
$ |
22,331,746 |
|
$ |
(6,510,038 |
) |
| EBITDA (1) |
$ |
26,808,535 |
|
$ |
1,614,446 |
|
| Adjusted EBITDA(1) |
$ |
16,880,280 |
|
$ |
9,310,034 |
|
| Earnings / (loss) per common
share, basic |
$ |
2.23 |
|
$ |
(0.69 |
) |
| Earnings / (loss) per common
share, diluted |
$ |
1.09 |
|
$ |
(0.69 |
) |
(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 income/(loss), 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, 2024, and 2023, 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) |
2024 |
|
2023 |
|
Ownership Days(1)(7) |
|
1,441 |
|
|
1,980 |
| Available Days(2)(7) |
|
1,441 |
|
|
1,980 |
| Operating Days(3)(7) |
|
1,419 |
|
|
1,980 |
| Daily TCE Rate(4) |
$ |
13,411 |
|
$ |
11,713 |
| Fleet Utilization(5) |
|
98% |
|
|
100% |
| Daily vessel operating
expenses(6) |
$ |
5,637 |
|
$ |
5,691 |
|
(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, |
| |
2024 |
|
2023 |
| REVENUES |
|
|
|
|
|
|
Total vessel revenues |
$ |
20,390,247 |
|
|
$ |
24,468,970 |
|
| |
|
|
|
|
|
| EXPENSES |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Voyage expenses (including
commissions to related party) |
|
(1,064,734 |
) |
|
|
(1,277,085 |
) |
| Vessel operating expenses |
|
(8,123,197 |
) |
|
|
(11,267,683 |
) |
| Management fees - related
parties |
|
(1,422,798 |
) |
|
|
(1,831,500 |
) |
| Depreciation and
amortization |
|
(3,855,832 |
) |
|
|
(5,812,463 |
) |
| General and administrative
expenses (including related party fees) |
|
(1,929,550 |
) |
|
|
(1,134,664 |
) |
| Gain on sale of vessels |
|
7,893,530 |
|
|
|
— |
|
|
Operating income |
$ |
11,887,666 |
|
|
$ |
3,145,575 |
|
| |
|
|
|
|
|
|
|
| Interest and finance costs,
net (1) |
|
(557,668 |
) |
|
|
(2,289,115 |
) |
| Other income / (expenses),
net |
|
11,065,037 |
|
|
|
(7,343,592 |
) |
| Income taxes |
|
(63,289 |
) |
|
|
(22,906 |
) |
|
Net income / (loss) and comprehensive income / (loss) from
continuing operations, net of taxes |
$ |
22,331,746 |
|
|
$ |
(6,510,038 |
) |
| Net income and
comprehensive income from discontinued
operations, net of taxes |
$ |
— |
|
|
$ |
17,339,332 |
|
|
Net income and comprehensive income |
$ |
22,331,746 |
|
|
$ |
10,829,294 |
|
| Dividend on Series D Preferred
Shares |
|
(631,944 |
) |
|
|
— |
|
| Deemed dividend on Series D
Preferred Shares |
|
(123,813 |
) |
|
|
— |
|
| Net income
attributable to common shareholders |
$ |
21,575,989 |
|
|
$ |
10,829,294 |
|
|
Earnings / (loss) per common share, basic, continuing
operations |
$ |
2.23 |
|
|
$ |
(0.69 |
) |
| Earnings / (loss) per
common share, diluted, continuing operations |
$ |
1.09 |
|
|
$ |
(0.69 |
) |
| Earnings per common
share, basic, discontinued
operations |
$ |
— |
|
|
$ |
1.83 |
|
| Earnings per common
share, diluted, discontinued
operations |
$ |
— |
|
|
$ |
1.83 |
|
| Earnings per common
share, basic, Total |
$ |
2.23 |
|
|
$ |
1.14 |
|
| Earnings per common
share, diluted, Total |
$ |
1.09 |
|
|
$ |
1.14 |
|
| Weighted average number of
common shares outstanding, basic |
|
9,662,354 |
|
|
|
9,460,976 |
|
| Weighted average number of
common shares outstanding, diluted |
|
20,564,123 |
|
|
|
9,460,976 |
|
(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 31,2024 |
|
December 31,2023 |
|
ASSETS |
|
|
|
|
|
|
|
| CURRENT
ASSETS: |
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
157,203,721 |
|
|
$ |
111,383,645 |
|
| Restricted cash |
|
2,830,759 |
|
|
|
2,327,502 |
|
| Due from related parties |
|
4,337,429 |
|
|
|
5,650,168 |
|
| Assets held for sale |
|
39,068,012 |
|
|
|
38,656,048 |
|
| Other current assets |
|
97,066,433 |
|
|
|
84,259,511 |
|
|
Total current assets |
|
300,506,354 |
|
|
|
242,276,874 |
|
| |
|
|
|
|
|
|
|
| NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
| Vessels, net |
|
189,713,003 |
|
|
|
229,536,996 |
|
| Restricted cash |
|
5,150,000 |
|
|
|
7,190,000 |
|
| Due from related parties |
|
3,599,018 |
|
|
|
4,504,340 |
|
| Investment in related
party |
|
117,541,024 |
|
|
|
117,537,135 |
|
| Other non-currents assets |
|
3,024,666 |
|
|
|
3,996,634 |
|
| Total non-current
assets |
|
319,027,711 |
|
|
|
362,765,105 |
|
|
Total assets |
|
619,534,065 |
|
|
|
605,041,979 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
| Current portion of long-term
debt, net |
|
14,541,683 |
|
|
|
17,679,295 |
|
| Debt related to assets held
for sale, net |
|
11,689,285 |
|
|
|
2,406,648 |
|
| Due to related parties,
current |
|
548,610 |
|
|
|
541,666 |
|
| Other current liabilities |
|
12,052,624 |
|
|
|
7,974,787 |
|
|
Total current liabilities |
|
38,832,202 |
|
|
|
28,602,396 |
|
| NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
| Long-term debt, net |
|
48,272,320 |
|
|
|
65,709,842 |
|
| Total non-current
liabilities |
|
48,272,320 |
|
|
|
65,709,842 |
|
|
Total liabilities |
|
87,104,522 |
|
|
|
94,312,238 |
|
| |
|
|
|
|
|
|
|
| MEZZANINE
EQUITY |
|
|
|
|
|
|
|
| 5.00% Series D fixed rate
cumulative perpetual convertible preferred shares: 50,000 shares
issued and outstanding as of December 31, 2023 and March 31, 2024,
respectively, aggregate liquidation preference of $50,000,000 as of
December 31, 2023 and March 31, 2024, respectively |
|
49,673,302 |
|
|
|
49,549,489 |
|
| Total mezzanine
equity |
|
49,673,302 |
|
|
|
49,549,489 |
|
| |
|
|
|
|
|
|
|
| SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
| Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 9,662,354 issued and
outstanding as of December 31, 2023 and March 31, 2024 |
|
9,662 |
|
|
|
9,662 |
|
| Series B Preferred Shares -
12,000 shares issued and outstanding as of December 31, 2023 and
March 31, 2024 |
|
12 |
|
|
|
12 |
|
| Additional paid-in
capital |
|
266,447,819 |
|
|
|
266,447,819 |
|
| Retained Earnings |
|
216,298,748 |
|
|
|
194,722,759 |
|
|
Total shareholders’ equity |
|
482,756,241 |
|
|
|
461,180,252 |
|
|
Total liabilities, mezzanine equity and shareholders’
equity |
$ |
619,534,065 |
|
|
$ |
605,041,979 |
|
CASTOR MARITIME
INC.Unaudited Consolidated Statements of Cash
Flows
| (Expressed in U.S.
Dollars) |
Three months EndedMarch 31, |
| |
|
2024 |
|
|
2023 |
| Cash Flows provided by
Operating Activities of continuing
operations: |
|
|
|
|
|
|
Net income |
$ |
22,331,746 |
|
|
$ |
10,829,294 |
|
| Less: Net income from
discontinued operations, net of taxes |
|
— |
|
|
|
17,339,332 |
|
| Net income / (loss) from
continuing operations, net of taxes |
|
22,331,746 |
|
|
|
(6,510,038 |
) |
| Adjustments to
reconcile net income / (loss) from continuing operations to net
cash provided by Operating Activities: |
|
|
|
|
|
| Depreciation and
amortization |
|
3,855,832 |
|
|
|
5,812,463 |
|
| Amortization of deferred
finance charges |
|
146,093 |
|
|
|
186,151 |
|
| Amortization of fair value of
acquired time charters |
|
265,173 |
|
|
|
1,026,959 |
|
| Gain on sale of vessels |
|
(7,893,530 |
) |
|
|
— |
|
| Straight line amortization of
hire |
|
(872,557 |
) |
|
|
— |
|
| Realized gain on sale of
equity securities |
|
— |
|
|
|
(2,636 |
) |
| Unrealized (gain)/ loss on
equity securities |
|
(9,787,434 |
) |
|
|
7,695,588 |
|
| Changes in operating
assets and liabilities: |
|
|
|
|
|
| Accounts receivable trade,
net |
|
1,165,592 |
|
|
|
(195,435 |
) |
| Inventories |
|
254,987 |
|
|
|
180,445 |
|
| Due from/to related
parties |
|
2,214,172 |
|
|
|
(753,948 |
) |
| Prepaid expenses and other
assets |
|
465,090 |
|
|
|
(124,161 |
) |
| Other deferred charges |
|
— |
|
|
|
51,138 |
|
| Accounts payable |
|
(1,065,765 |
) |
|
|
(3,595,122 |
) |
| Accrued liabilities |
|
347,392 |
|
|
|
(1,382,673 |
) |
| Deferred revenue |
|
(95,940 |
) |
|
|
(782,933 |
) |
| Dry-dock costs paid |
|
— |
|
|
|
(1,315,024 |
) |
| Net Cash provided by
Operating Activities from continuing operations |
|
11,330,851 |
|
|
|
290,774 |
|
| |
|
|
|
|
|
| Cash flow provided by
/ (used in) Investing Activities of continuing
operations: |
|
|
|
|
|
| Vessel acquisitions and other
vessel improvements |
|
(18,923 |
) |
|
|
(204,763 |
) |
| Purchase of equity
securities |
|
(3,757,725 |
) |
|
|
(31,742,081 |
) |
| Advance received for sale of
vessel |
|
4,950,000 |
|
|
|
— |
|
| Proceeds from sale of equity
securities |
|
— |
|
|
|
258,999 |
|
| Net proceeds from sale of
vessels |
|
43,842,720 |
|
|
|
— |
|
| Net cash provided by /
(used in) Investing Activities from continuing
operations |
|
45,016,072 |
|
|
|
(31,687,845 |
) |
| |
|
|
|
|
|
| Cash flows used in
Financing Activities of continuing operations: |
|
|
|
|
|
| Dividends paid on Series D
Preferred Shares |
|
(625,000 |
) |
|
|
— |
|
| Repayment of long-term
debt |
|
(11,438,590 |
) |
|
|
(8,444,500 |
) |
| Payment of deferred financing
costs |
|
— |
|
|
|
(25,178 |
) |
| Proceeds received from Toro
related to Spin-Off |
|
— |
|
|
|
2,570,503 |
|
| Net cash used in
Financing Activities from continuing operations |
|
(12,063,590 |
) |
|
|
(5,899,175 |
) |
| |
|
|
|
|
|
| Cash flows of
discontinued operations: |
|
|
|
|
|
| Net cash provided by Operating
Activities from discontinued operations |
|
— |
|
|
|
20,409,041 |
|
| Net cash used in Investing
Activities from discontinued operations |
|
— |
|
|
|
(153,861 |
) |
| Net cash used in Financing
Activities from discontinued operations |
|
— |
|
|
|
(62,734,774 |
) |
| Net cash (used in) /
provided by discontinued operations |
|
— |
|
|
|
(42,479,594 |
) |
| |
|
|
|
|
|
| Net
increase/(decrease) in cash, cash equivalents, and restricted
cash |
|
44,283,333 |
|
|
|
(79,775,840 |
) |
| Cash, cash equivalents
and restricted cash at the beginning of the period |
|
120,901,147 |
|
|
|
152,307,420 |
|
| Cash, cash equivalents
and restricted cash at the end of the period |
$ |
165,184,480 |
|
|
$ |
72,531,580 |
|
| |
|
|
|
|
|
|
|
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. 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 be different from and 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 EndedMarch 31, |
| (In U.S. dollars, except for
Available Days) |
2024 |
|
2023 |
|
Total vessel revenues |
$ |
20,390,247 |
|
|
$ |
24,468,970 |
|
| Voyage expenses - including
commissions to related party |
|
(1,064,734 |
) |
|
|
(1,277,085 |
) |
|
TCE revenues |
$ |
19,325,513 |
|
|
$ |
23,191,885 |
|
| Available Days |
|
1,441 |
|
|
|
1,980 |
|
|
Daily TCE Rate |
$ |
13,411 |
|
|
$ |
11,713 |
|
EBITDA and Adjusted EBITDA.
EBITDA and Adjusted EBITDA are not measures of financial
performance under U.S. GAAP, do 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. Adjusted EBITDA
represents EBITDA adjusted to exclude unrealized gain/loss on
equity securities, which the Company believes are not indicative of
the ongoing performance of its core operations. EBITDA and Adjusted
EBITDA are used as supplemental financial measure by management and
external users of financial statements to assess our operating
performance. We believe that EBITDA and Adjusted 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 for EBITDA, and
further excluding unrealized gains/ loss on securities for Adjusted
EBITDA, 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 and Adjusted EBITDA as measures 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. Our
basis of computing EBITDA and Adjusted EBITDA as presented below
may be different from and may not be comparable to similarly titled
measures of other companies.
The following table reconciles EBITDA and
Adjusted EBITDA to Net income / (loss) from continuing operations,
the most directly comparable U.S. GAAP financial measure, for the
periods presented:
| |
Three Months EndedMarch 31, |
| (In U.S. dollars) |
2024 |
|
2023 |
|
Net Income / (loss) from continuing operations, net of
taxes |
$ |
22,331,746 |
|
|
$ |
(6,510,038 |
) |
| Depreciation and
amortization |
|
3,855,832 |
|
|
|
5,812,463 |
|
| Interest and finance costs,
net (1) |
|
557,668 |
|
|
|
2,289,115 |
|
| US source income taxes |
|
63,289 |
|
|
|
22,906 |
|
|
EBITDA |
$ |
26,808,535 |
|
|
$ |
1,614,446 |
|
|
Unrealized (gain) / loss on equity securities |
|
(9,928,255 |
) |
|
|
7,695,588 |
|
|
Adjusted EBITDA |
$ |
16,880,280 |
|
|
$ |
9,310,034 |
|
(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 (including the expected deliveries of vessels by us
discussed herein), 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 current or
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 generally: the effects of
the spin-off of our tanker business, our business strategy,
expected capital spending and other plans and objectives for future
operations, dry bulk and containership market conditions and
trends, including volatility in charter rates (particularly for
vessels employed in short-term time charters or index linked period
time charters), factors affecting supply and demand, fluctuating
vessel values, opportunities for the profitable operations of dry
bulk and container vessels and the strength of world economies,
changes in the size and composition of our fleet, our ability to
realize the expected benefits from our past or future vessel
acquisitions, our ability to realize the expected benefits of
vessel acquisitions, increased transactions costs and other adverse
effects (such as lost profit) due to any failure to consummate any
sale of our vessels, our relationships with our current and future
service providers and customers, including the ongoing performance
of their obligations, dependence on their expertise, compliance
with applicable laws, and any impacts on our reputation due to our
association with them, 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, in
particular due to economic, financial or operational reasons, 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, including bunker prices, dry-docking,
insurance costs, costs associated with regulatory compliance, and
costs associated with climate change, our ability to fund future
capital expenditures and investments in the acquisition and
refurbishment of our vessels (including the amount and nature
thereof and the timing of completion thereof, the delivery and
commencement of operations dates, expected downtime and lost
revenue), instances of off-hire, due to vessel upgrades and
repairs, fluctuations in interest rates and currencies, including
the value of the U.S. dollar relative to other currencies, any
malfunction or disruption of information technology systems and
networks that our operations rely on or any impact of a possible
cybersecurity breach, existing or future disputes, proceedings or
litigation, future sales of our securities in the public market and
our ability to maintain compliance with applicable listing
standards, volatility in our share price, including due to high
volume transactions in our shares by retail investors, potential
conflicts of interest involving affiliated entities and/or 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 armed
conflicts such as the war in Ukraine and the conflict in the Middle
East, acts of piracy or maritime aggression, such as recent
maritime incidents involving vessels in and around the Red Sea,
sanctions, “trade wars”, global public health threats and major
outbreaks of disease, changes in seaborne and other transportation,
including due to the maritime incidents in and around the Red Sea,
fluctuating demand for dry bulk and container vessels and/or
disruption of shipping routes due to accidents, political events,
international sanctions, international hostilities and instability,
piracy or acts of terrorism, changes in governmental rules and
regulations or actions taken by regulatory authorities, including
changes to environmental regulations applicable to the shipping
industry, accidents, the impact of adverse weather and natural
disasters and any other factors described in our filings with the
SEC. 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, 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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