Globus Maritime Limited ("Globus," the “Company," “we,” or “our”)
(NASDAQ: GLBS), a dry bulk shipping company, today reported its
unaudited consolidated operating and financial results for the
quarter and year ended December 31, 2018.
- In 12M 2018, Total revenues
increased by about 25% compared to 12M 2017
Financial Highlights
|
|
Three months ended |
Year ended |
|
|
December 31, |
December 31, |
|
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
| Total
revenues |
4,361 |
|
3,952 |
|
17,354 |
|
13,883 |
|
| Adjusted
EBITDA (1) |
785 |
|
900 |
|
4,319 |
|
1,701 |
|
| Total
comprehensive loss |
(1,349 |
) |
(1,277 |
) |
(3,568 |
) |
(6,475 |
) |
| Basic
loss per share(2) |
(0.42 |
) |
(0.42 |
) |
(1.11 |
) |
(2.51 |
) |
| Time
charter equivalent rate (TCE)(3) |
9,088 |
|
8,122 |
|
9,213 |
|
6,993 |
|
| Average
operating expenses per vessel per day |
5,640 |
|
5,267 |
|
5,438 |
|
5,005 |
|
| Average
number of vessels |
5.0 |
|
5.0 |
|
5.0 |
|
5.0 |
|
(1) Adjusted EBITDA is a measure not in accordance with
generally accepted accounting principles (“GAAP”). See a later
section of this press release for a reconciliation of Adjusted
EBITDA to total comprehensive loss and net cash (used in)/
generated from operating activities, which are the most directly
comparable financial measures calculated and presented in
accordance with the GAAP measures.
(2) The weighted average number of shares for the year ended
December 31, 2018, was 3,200,927 compared to 2,574,995 shares for
the year ended December 31, 2017. The weighted average number of
shares for the three month period ended December 31, 2018 was
3,206,959 compared to 3,050,316 shares for the three month period
ended December 31, 2017. On October 15, 2018, we effected a
ten-for-one reverse stock split which reduced the number of
outstanding common shares from 32,065,077 to 3,206,495 shares
(adjustments were made based on fractional shares). Unless
otherwise noted, all historical share numbers and per share amounts
have been adjusted to give effect to this reverse stock split.
(3) Daily Time charter equivalent rate (TCE) is a measure not in
accordance with generally accepted accounting principles (“GAAP”).
See a later section of this press release for a reconciliation of
Daily TCE to Voyage revenues.
Current Fleet ProfileAs of the
date of this press release, Globus’ subsidiaries own and operate
five dry bulk carriers, consisting of four Supramax and one
Panamax.
|
Vessel |
Year Built |
Yard |
Type |
Month/Year Delivered |
DWT |
Flag |
|
Moon Globe |
2005 |
Hudong-Zhonghua |
Panamax |
June 2011 |
74,432 |
Marshall Is. |
|
Sun Globe |
2007 |
Tsuneishi Cebu |
Supramax |
Sept 2011 |
58,790 |
Malta |
|
River Globe |
2007 |
Yangzhou Dayang |
Supramax |
Dec 2007 |
53,627 |
Marshall Is. |
|
Sky Globe |
2009 |
Taizhou Kouan |
Supramax |
May 2010 |
56,855 |
Marshall Is. |
|
Star Globe |
2010 |
Taizhou Kouan |
Supramax |
May 2010 |
56,867 |
Marshall Is. |
| Weighted Average Age: 10.8 Years as of
December 31, 2018 |
|
300,571 |
|
Current Fleet Deployment
All our vessels are currently operating on short
term time charters (“on spot”).
Management Commentary
Athanasios Feidakis, President, Chief Executive
Officer and Chief Financial Officer of Globus Maritime Limited,
stated: “We are very pleased with our
overall performance during 2018. Our total revenues increased
by about 25% when compared to year 2017. At the same time our
comprehensive loss went down 45% in 2018 compared to 2017.
Additionally our 4th quarter 2018 had an increase in our total
revenues of 10% compared to the same quarter in 2017.
“In the second half of Q4 2018 the market
experienced a strong downward pressure; however we are getting some
optimistic signals for the future, mainly from the supply side of
the market. We hope the trade war problems will be resolved for the
benefit of the entire world economy and by extent for our industry.
The combination of the trade war, Brexit, Chinese New Year among
other factors repressed the demand which spilled over onto the
industry charter rates. However, the fundamentals have improved
slightly recently and with the Baltic Dry Index doing better we are
optimistic that the desperately needed rebound of the market isn’t
too far off. Fortunately, we were able to seize the opportunity and
secure some relatively good period charters for some of our vessels
before this downward trend started.
“Additionally we are pleased to report our
recent developments are as follows:
- In October 2018 and following our Reverse Split effect of
October 15, 2018 we have regained compliance with NASDAQ Stock
Exchange with the price of $1.00 per share minimum closing bid
price requirement for continued listing on the NASDAQ Capital
Market, pursuant to the NASDAQ marketplace rules.
- In November 2018, we entered into a credit facility for up to
$15 million with Firment Shipping Inc., a related party to us, for
the purpose of financing our general working capital needs.
- In December 2018, the Company entered into a Loan Agreement
with Macquarie International Bank Limited for an amount up to
US$13.5 million in order to refinance two of its vessels, m/v Moon
Globe and m/v Sun Globe.
- On Wednesday March 13, 2019, we announced that we entered into
a Securities Purchase Agreement with a private investor and issued
for gross proceeds of $5 million, a senior convertible note of
which details of the transaction can be easily found in the
contents of our press release herein.
Furthermore, we look at the above transactions
positively since they not only enhance our balance sheet, but they
also reinforce our previously stated intent to do everything
possible to maximize shareholder value and grow the Company by
pursuing opportunities for accretive acquisitions.”
Management Discussion and Analysis of the
Results of Operations
Fourth quarter of the year 2018 compared
to the fourth quarter of the year 2017
Total comprehensive loss for the fourth quarter
of the year 2018 amounted to $1,349 thousand or $0.42 basic loss
per share based on 3,206,959 weighted average number of shares,
compared to total comprehensive loss of $1,277 thousand for the
same period last year or $0.42 basic loss per share based on
3,050,316 weighted average number of shares.
The following table corresponds to the breakdown
of the factors that led to the increase of total comprehensive loss
during the fourth quarter of 2018 compared to the corresponding
quarter in 2017 (expressed in $000’s):
4th Quarter of 2018 vs 4th Quarter of
2017
|
|
Net loss for the 4th
quarter of 2017 |
(1,277 |
) |
|
|
|
Increase
in Voyage revenues |
409 |
|
|
|
|
Increase
in Voyage expenses |
(120 |
) |
|
|
|
Increase
in Vessels operating expenses |
(171 |
) |
|
|
|
Decrease
in Depreciation |
33 |
|
|
|
|
Increase
in Depreciation of dry docking costs |
(114 |
) |
|
|
|
Increase
in Total administrative expenses |
(214 |
) |
|
|
|
Increase
in Other expenses, net |
(18 |
) |
|
|
|
Decrease
in Interest income |
(3 |
) |
|
|
|
Decrease
in Interest expense and finance costs net, |
146 |
|
|
|
|
Increase
in Loss on derivative financial instruments |
(131 |
) |
|
|
|
Decrease
in Foreign exchange losses |
111 |
|
|
|
|
Net loss for the 4th
quarter of 2018 |
(1,349 |
) |
|
Voyage revenuesDuring the
three-month periods ended December 31, 2018 and 2017, our revenue
reached $4.4 million and $4 million respectively. The 10% increase
in Voyage revenues was mainly attributed to the increase in the
average time charter rates achieved by our vessels during the
fourth quarter of 2018 compared to the same period in 2017. Time
Charter Equivalent rate (TCE) for the fourth quarter of 2018
amounted to $9,088 per vessel per day against $8,122 per vessel per
day during the same period in 2017 corresponding to an increase of
12%.
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, reached $2.6 million and $2.4 million during the three
month period ended December 31, 2018 and 2017, respectively. The
breakdown of our operating expenses for the quarters ended December
31, 2018 and 2017 was as follows:
|
|
|
2018 |
|
2017 |
|
|
|
|
Crew
expenses |
47 |
% |
48 |
% |
|
|
|
Repairs
and spares |
28 |
% |
26 |
% |
|
|
|
Insurance |
6 |
% |
10 |
% |
|
|
|
Stores |
9 |
% |
10 |
% |
|
|
|
Lubricants |
6 |
% |
5 |
% |
|
|
|
Other |
4 |
% |
1 |
% |
|
Average daily operating expenses during the
three-month periods ended December 31, 2018 and 2017 were $5,640
per vessel per day and $5,267 per vessel per day respectively,
corresponding to an increase of 7%.
Total administrative
expensesTotal administrative expenses increased by $0.2
million or 67% to $0.5 million during the three month period ended
December 31, 2018 compared to $0.3 million during the same period
in 2017.
Loss on derivative financial
instrumentsIn November 2018, we entered into a credit
facility for up to $15 million with Firment Shipping Inc., a
related party to us, for the purpose of financing its general
working capital needs (which is further discussed in the
“Firment Shipping Credit Facility” section below
in this press release). Due to a conversion clause included in this
agreement the Company has recognized this agreement as a hybrid
agreement which includes an embedded derivative. This embedded
derivative was separated to the derivative component and the
non-derivative host. The derivative component is shown separately
from the non-derivative host at fair value. The changes in the fair
value of the derivative financial instrument are depicted in the
consolidated statement of comprehensive loss. As of December 31,
2018, the Company recognized a loss on this derivative financial
instrument amounting to approximately $131,000.
Year ended December 31, 2018 compared to
the year ended December 31, 2017
Total comprehensive loss for the year ended
December 31, 2018 amounted to $3.6 million or $1.11 basic loss per
share based on 3,200,927 weighted average number of shares,
compared to total comprehensive loss of $6.5 million for the same
period last year or $2.51 basic loss per share based on 3,050,316
weighted average number of shares.
The following table corresponds to the breakdown
of the factors that led to the decrease of total comprehensive loss
for the year ended December 31, 2018 compared to the total
comprehensive loss ended December 31, 2017 (expressed in
$000’s):
Year end of 2018 vs Year end of
2017
|
|
Net loss for the year 2017 |
(6,475 |
) |
|
|
|
Increase
in Voyage revenues |
3,502 |
|
|
|
|
Decrease
in Management fee income |
(31 |
) |
|
|
|
Decrease
in Voyage expenses |
164 |
|
|
|
|
Increase
in Vessels operating expenses |
(790 |
) |
|
|
|
Decrease
in Depreciation |
253 |
|
|
|
|
Increase
in Depreciation of dry docking costs |
(304 |
) |
|
|
|
Increase
in Total administrative expenses |
(146 |
) |
|
|
|
Decrease
in Other income, net |
(81 |
) |
|
|
|
Decrease
in interest income |
(3 |
) |
|
|
|
Decrease
in Interest expense and finance costs |
165 |
|
|
|
|
Increase
in Loss on derivative financial instruments |
(131 |
) |
|
|
|
Decrease
in Foreign exchange gains/(losses), net |
309 |
|
|
|
|
Net loss for the year 2018 |
(3,568 |
) |
|
Voyage revenuesDuring the years
ended December 31, 2018 and 2017, our Voyage revenue reached $17.4
million and $13.9 million respectively. The 25% increase in revenue
was mainly attributed to the increase in the average time charter
rates achieved by our vessels during the year ended December 31,
2018 compared to the same period in 2017. Time Charter Equivalent
rate (TCE) for the year 2018 amounted to $9,213 per vessel per day
against $6,993 per vessel per day during the year 2017
corresponding to an increase of 32%.
Voyage expenses Voyage expenses
reached $1.2 million during the year ended December 31, 2018,
compared to $1.4 million during the year 2017. Voyage expenses
include commissions on revenue, port and other voyage expenses and
bunker expenses. Bunker expenses mainly refer to the cost of
bunkers consumed during periods that our vessels are travelling
seeking employment. Voyage expenses for the year 2018 and 2017 are
analyzed as follows:
|
|
In
$000’s |
2018 |
2017 |
|
|
|
Commissions |
281 |
241 |
|
|
|
Bunkers
expenses |
716 |
968 |
|
|
|
Other
voyage expenses |
191 |
143 |
|
|
|
Total |
1,188 |
1,352 |
|
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, reached $9.9 million during the year ended December 31,
2018 compared to $9.1 million during the year 2017. The breakdown
of our operating expenses for the year ended December 31, 2018 and
2017, was as follows:
|
|
|
2018 |
|
2017 |
|
|
|
|
Crew
expenses |
48 |
% |
51 |
% |
|
|
|
Repairs
and spares |
28 |
% |
24 |
% |
|
|
|
Insurance |
6 |
% |
8 |
% |
|
|
|
Stores |
10 |
% |
9 |
% |
|
|
|
Lubricants |
5 |
% |
5 |
% |
|
|
|
Other |
3 |
% |
3 |
% |
|
Average daily operating expenses during the year
ended December 31, 2018 and 2017, were $5,438 per vessel per day
and $5,005 per vessel per day respectively, corresponding to an
increase of 9%.
DepreciationDepreciation
decreased by $0.3 million, or 6%, to $4.6 million in 2018, compared
to $4.9 million in 2017 due to the increase of the scrap rate from
$250/ton to $300/ton during the first quarter of 2018 due to the
increased scrap rates worldwide. This resulted to a reduced
depreciation expense of approximately
$178,000.
Interest expense and finance
costsInterest expense and finance costs reached $2.1
million during the year ended December 31, 2018, compared to $2.2
million during the year 2017. The weighted average interest rate on
our debt outstanding during the year ended December 31, 2018,
reached 4.97% compared to 3.8% during the year 2017. Our debt
outstanding for the year ended 2018 was $37.9 million compared to
$41.7 million for the year ended 2017. Interest expense and finance
costs for the year 2018 and 2017 are analyzed as follows:
|
|
In
$000’s |
2018 |
2017 |
|
|
|
Interest
payable on long-term borrowings |
2,004 |
1,778 |
|
|
|
Bank
charges |
29 |
34 |
|
|
|
Amortization of debt discount |
23 |
84 |
|
|
|
Other
finance expenses |
- |
325 |
|
|
|
Total |
2,056 |
2,221 |
|
Loss on derivative financial
instrumentsIn November 2018, we entered into a credit
facility for up to $15 million with Firment Shipping Inc., a
related party to us, for the purpose of financing its general
working capital needs (which is further discussed in the
“Firment Shipping Credit Facility” section below
in this press release). Due to a conversion clause included in this
agreement the Company has recognized this agreement as a hybrid
agreement which includes an embedded derivative. This embedded
derivative was separated to the derivative component and the
non-derivative host. The derivative component is shown separately
from the non-derivative host at fair value. The changes in the fair
value of the derivative financial instrument are depicted in the
consolidated statement of comprehensive loss. As of December 31,
2018, the Company recognized a loss on this derivative financial
instrument amounting to approximately $131,000.
Liquidity and capital
resourcesAs of December 31, 2018 and 2017, our cash and
bank balances and bank deposits were $0.1 million and $2.8 million
respectively.
Net cash provided by operating
activities for the year ended December 31, 2018 was $3.9
million compared to net cash used in operating activities of $0.6
million during the year 2017. The $3.3 million increase in our cash
from operations was mainly attributed to the $2.6 million increase
in our adjusted EBITDA from $1.7 million adjusted EBITDA during the
year 2017 to adjusted EBITDA of $4.3 million during the year under
consideration.
Net cash generated from/(used in)
financing activities during the three-month and
twelve-month periods ended December 31, 2018 and 2017 were as
follows:
|
|
Three months ended December
31, |
Year ended December 31, |
| In
$000’s |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
| Proceeds
from issuance of share capital |
- |
|
3,842 |
|
600 |
|
9,653 |
|
| Proceeds
from loans |
13,500 |
|
- |
|
13,500 |
|
- |
|
| Net
proceeds/(repayment) from shareholders loan Firment Shipping &
Silaner Credit Facilities |
2,200 |
|
(280 |
) |
2,200 |
|
280 |
|
|
Repayment of long term debt |
(15,704 |
) |
- |
|
(19,497 |
) |
(4,399 |
) |
|
Restricted cash |
(1,350 |
) |
- |
|
(1,140 |
) |
- |
|
| Payment
of financing costs |
(203 |
) |
- |
|
(203 |
) |
- |
|
| Interest
paid |
(433 |
) |
(495 |
) |
(1,895 |
) |
(3 ,309 |
) |
|
Net cash generated from/(used in) financing
activities |
(1,990 |
) |
3,067 |
|
(6,435 |
) |
2,225 |
|
As of December 31, 2018, we and our
vessel-owning subsidiaries had outstanding borrowings under our
Loan agreements of an aggregate of $37.9 million compared to $41.7
million as of December 31, 2017, gross of unamortized debt
discount.
Exercise of Warrants
In January 2018, an investor partially exercised
his warrant by purchasing 375,000 of the Company’s common shares
for aggregate gross proceeds to the Company of $600,000. For
guidance please refer to our last published Annual Report
discussing in detail the Company’s Share and Warrant Purchase
Agreement of February 8, 2017 (“February 2017 private
placement”).
As of September 30, 2018, in connection with the
February 2017 private placement, the February 2017 Warrants
outstanding were exercisable for an aggregate of 3,052,321 common
shares.
Gaining Compliance with NASDAQ Capital
Market
On May 4, 2018, we received written notification
from The Nasdaq Stock Market (“Nasdaq”) dated April 30, 2018,
indicating that because the closing bid price of its common stock
for the last 30 consecutive business days was below $1.00 per
share, the Company no longer met the minimum bid price continued
listing requirement for the Nasdaq Capital Market, as set forth in
Nasdaq Listing Rule 5450(a)(1). Pursuant to Nasdaq Listing Rules,
the applicable grace period to regain compliance is 180 days, or
until October 29, 2018.
On October 8, 2018 the Company determined to
effect a 1‐for-10 reverse stock split in order to regain
compliance with the Nasdaq Capital Market concerning the minimum
bid price requirement. On October 15, 2018 we had the
1‐for‐10 reverse stock split effect and on October 30 we received
notification from Nasdaq that it had regained compliance with the
minimum bid price, and the matter is now closed. We effected a
ten-for-one reverse stock split which reduced the number of
outstanding common shares from 32,065,077 to 3,206,495 shares
(adjustments were made based on fractional shares). As of December
31, 2018, our issued and outstanding capital stock consisted of
3,209,327 common shares.
Firment Shipping Credit
Facility
In November 2018, we entered into a credit
facility for up to $15 million with Firment Shipping Inc., a
related party to us, for the purpose of financing our general
working capital needs. The Firment Shipping Credit Facility is
unsecured and remains available until its final maturity date at
November 20, 2020. We have the right to drawdown any amount up to
$15 million or prepay any amount in multiples of $100,000. Any
prepaid amount can be re-borrowed in accordance with the terms of
the facility. Interest on drawn and outstanding amounts is charged
at 7% per annum and no commitment fee was charged on the amounts
remaining available and undrawn. Interest is payable the last day
of a period of three months after the Drawdown Date, after this
period in case of failure to pay any sum due a default interest of
2% per annum above the regular interest is charged. We have also
the right, in our sole option, to convert in whole or in part the
outstanding unpaid principal amount and accrued but unpaid interest
under this Agreement into Common stock. The Conversion price shall
equal the higher of (i) the average of the daily dollar
volume-weighted average sale price for the Common Stock on the
Principal Market on any Trading Day during the period beginning at
9.30 a.m. New York City time and ending at 4.00 p.m. over the
Pricing Period multiplied by 80%, where the “Pricing Period” equals
the ten consecutive Trading Days immediately preceding the date on
which the Conversion Notice was executed or (ii) $2.80.
As per this conversion clause the Company has
recognized this agreement as a hybrid agreement which includes an
embedded derivative. This embedded derivative was separated to the
derivative component and the non-derivative host. The derivative
component is shown separately from the non-derivative host in the
consolidated statement of financial position at fair value. The
changes in the fair value of the derivative financial instrument
are depicted in the consolidated statement of comprehensive loss.
As of December 31, 2018, the Company recognized a loss on this
derivative financial instrument amounting to approximately
$131,000.
Macquarie Loan Agreement
In December 2018, through our wholly owned
subsidiaries, Artful Shipholding S.A. (“Artful”) and Longevity
Maritime Limited (“Longevity”), we entered into the Macquarie Loan
Agreement for an amount up to $13.5 million with Macquarie Bank
International Limited and used funds borrowed thereunder to
refinance part of the repayment of the existing DVB Loan Agreement
for the m/v Moon Globe and m/v Sun Globe. Globus acts as guarantor
for this loan.
New Convertible Note
On March 13, 2019, the Company signed a
securities purchase agreement with a private investor and on March
13, 2019 issued, for gross proceeds of $5 million, a senior
convertible note (the “Convertible Note”) that is convertible into
shares of the Company’s common stock, par value $0.004 per share.
If not converted or redeemed beforehand pursuant to the terms of
the Convertible Note, the Convertible Note matures upon the
anniversary of its issue. We will use part of the proceeds from the
Convertible Note for general corporate purposes and working capital
including repayment of debt. The Convertible Note was issued in a
transaction exempt from registration under the Securities Act. As
of the date hereof, no conversion of the Convertible Note has
occurred.
The Convertible Note provides for interest to
accrue at 10% annually, which interest shall be paid on the first
anniversary of the Convertible Note’s issuance unless the
Convertible Note is converted or redeemed pursuant to its terms
beforehand. The interest may be paid in common shares of the
Company, if certain conditions described within the Convertible
Note are met.
CONSOLIDATED FINANCIAL & OPERATING
DATA
|
|
Three months ended |
Year ended |
|
|
December 31, |
December31, |
|
|
2018 |
2017 |
|
2018 |
2017 |
|
|
(in thousands of U.S. dollars, except per share data) |
(unaudited) |
(unaudited) |
|
Statement of comprehensive loss data: |
|
|
|
|
| Voyage
revenues |
4,361 |
|
3,952 |
|
17,354 |
|
13,852 |
|
|
Management fee income |
- |
|
- |
|
- |
|
31 |
|
|
Total Revenues |
4,361 |
|
3,952 |
|
17,354 |
|
13,883 |
|
|
|
|
|
|
|
| Voyage
expenses |
(462 |
) |
(342 |
) |
(1,188 |
) |
(1,352 |
) |
| Vessel
operating expenses |
(2,594 |
) |
(2,423 |
) |
(9,925 |
) |
(9,135 |
) |
|
Depreciation |
(1,161 |
) |
(1,195 |
) |
(4,601 |
) |
(4,854 |
) |
|
Depreciation of dry docking costs |
(394 |
) |
(280 |
) |
(1,166 |
) |
(862 |
) |
|
Administrative expenses |
(354 |
) |
(80 |
) |
(1,356 |
) |
(1,224 |
) |
|
Administrative expenses payable to related parties |
(130 |
) |
(189 |
) |
(528 |
) |
(514 |
) |
|
Share-based payments |
(10 |
) |
(12 |
) |
(40 |
) |
(40 |
) |
| Other
(expenses)/income, net |
(25 |
) |
(7 |
) |
2 |
|
83 |
|
|
Operating loss before financing activities |
(769 |
) |
(576 |
) |
(1,448 |
) |
(4,015 |
) |
| Interest
income |
- |
|
3 |
|
- |
|
3 |
|
| Interest
expense and finance costs |
(490 |
) |
(636 |
) |
(2,056 |
) |
(2,221 |
) |
| Loss on
derivative financial instruments |
(131 |
) |
- |
|
(131 |
) |
- |
|
| Foreign
exchange (losses)/gains, net |
41 |
|
(68 |
) |
67 |
|
(242 |
) |
|
Total finance costs, net |
(580 |
) |
(701 |
) |
(2,120 |
) |
(2,460 |
) |
|
Total comprehensive loss for the period |
(1,349 |
) |
(1,277 |
) |
(3,568 |
) |
(6,475 |
) |
|
|
|
|
|
|
|
Basic & diluted (loss)/earnings per share for the period |
(0.42 |
) |
(0.42 |
) |
(1.11 |
) |
(2.51 |
) |
|
Adjusted EBITDA (1) |
785 |
|
900 |
|
4,319 |
|
1,701 |
|
(1) Adjusted EBITDA represents net earnings
before interest and finance costs net, gains or losses from the
change in fair value of derivative financial instruments, foreign
exchange gains or losses, income taxes, depreciation, depreciation
of dry-docking costs, amortization of fair value of time charter
acquired, impairment and gains or losses on sale of vessels.
Adjusted EBITDA does not represent and should not be considered as
an alternative to total comprehensive income/(loss) or cash
generated from operations, as determined by IFRS, and our
calculation of Adjusted EBITDA may not be comparable to that
reported by other companies. Adjusted EBITDA is not a recognized
measurement under IFRS.
Adjusted EBITDA is included herein because it is
a basis upon which we assess our financial performance and because
we believe that it presents useful information to investors
regarding a company’s ability to service and/or incur indebtedness
and it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry.
Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation, or as a
substitute for analysis of our results as reported under IFRS. Some
of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect the interest expense or the
cash requirements necessary to service interest or principal
payments on our debt;
- Adjusted EBITDA does not reflect changes in or cash
requirements for our working capital needs; and
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, Adjusted EBITDA
should not be considered a measure of discretionary cash available
to us to invest in the growth of our business.
The following table sets forth a
reconciliation of Adjusted EBITDA to total comprehensive (loss) and
net cash (used in)/ generated from operating activities for the
periods presented:
|
|
Three months ended |
Year ended |
|
|
December
31, |
|
December 31, |
|
|
(Expressed in thousands of U.S. dollars) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
|
|
Total comprehensive (loss)/income for the
period |
(1,349 |
) |
(1,277 |
) |
(3,568 |
) |
(6,475 |
) |
| Interest
and finance costs, net |
490 |
|
633 |
|
2,056 |
|
2,218 |
|
| Foreign
exchange gains/(losses), net |
(42 |
) |
69 |
|
(67 |
) |
242 |
|
|
Depreciation |
1,161 |
|
1,195 |
|
4,601 |
|
4,854 |
|
|
Depreciation of dry docking costs |
394 |
|
280 |
|
1,166 |
|
862 |
|
| Loss on
derivative financial instruments |
131 |
|
- |
|
131 |
|
- |
|
| Adjusted
EBITDA |
785 |
|
900 |
|
4,319 |
|
1,701 |
|
|
Share-based payments |
10 |
|
- |
|
50 |
|
30 |
|
| Payment
of deferred dry docking costs |
(687 |
) |
273 |
|
(1,204 |
) |
(412 |
) |
| Net
(increase)/decrease in operating assets |
542 |
|
200 |
|
(134 |
) |
512 |
|
| Net
(decrease)/increase in operating liabilities |
682 |
|
(1,852 |
) |
829 |
|
(1,143 |
) |
|
Provision for staff retirement indemnities |
1 |
|
1 |
|
5 |
|
4 |
|
| Foreign
exchange gains net, not attributed to cash & cash
equivalents |
(124 |
) |
(15 |
) |
(14 |
) |
(61 |
) |
|
Net cash (used in)/ generated from operating
activities |
1,209 |
|
(493 |
) |
3,851 |
|
631 |
|
|
|
Three months ended |
Year ended |
|
|
December 31, |
December 31, |
|
(Expressed in thousands of U.S. dollars) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
(Unaudited) |
|
Statement of cash flow data: |
|
|
| Net cash
(used in)/generated from operating activities |
1,209 |
|
(493 |
) |
3,851 |
|
631 |
|
| Net cash
(used in)/generated from investing activities |
(69 |
) |
(36 |
) |
(126 |
) |
(263 |
) |
| Net cash
generated from/(used in) financing activities |
(1,990 |
) |
3,067 |
|
(6,435 |
) |
2,225 |
|
|
|
As of December 31, |
As of December 31, |
|
(Expressed in thousands of U.S. Dollars) |
2018 |
2017 |
|
|
(Unaudited) |
|
Consolidated condensed statement of financial
position: |
|
|
|
Vessels, net |
83,750 |
87,320 |
| Other
non-current assets |
130 |
53 |
|
Total non-current assets |
83,880 |
87,373 |
| Cash
and bank balances and bank deposits |
46 |
2,756 |
| Other
current assets |
2,748 |
1,474 |
|
Total current assets |
2,794 |
4,230 |
|
Total assets |
86,674 |
91,603 |
|
Total equity |
41,050 |
43,968 |
| Total
debt net of unamortized debt discount |
36,868 |
41,538 |
| Other
liabilities |
8,756 |
6,097 |
|
Total
liabilities |
45,624 |
47,635 |
|
Total equity and liabilities |
86,674 |
91,603 |
Consolidated statement of changes in
equity:
|
(Expressed in thousands of U.S. Dollars) |
Issued share |
Share |
(Accumulated |
Total |
|
|
Capital |
Premium |
Deficit) |
Equity |
|
As at December 31, 2017 |
13 |
139,684 |
(95,729 |
) |
43,968 |
|
| Loss
for the year |
- |
- |
(3,568 |
) |
(3,568 |
) |
|
Issuance of common stock due to exercise of warrants (1) |
- |
600 |
- |
|
600 |
|
|
Share-based payments |
- |
50 |
- |
|
50 |
|
|
As at December 31,
2018 |
13 |
140,334 |
(99,298 |
) |
41,050 |
|
(1) Pursuant to the February 2017 Share and
warrant purchase agreement discussed in our Annual Report, warrants
to buy 37,500 common shares were exercised during 2018.
|
|
Three months endedDecember 31, |
Year ended December 31, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Ownership days (1) |
460 |
|
460 |
|
1,825 |
|
1,825 |
|
|
|
Available days (2) |
429 |
|
445 |
|
1,755 |
|
1,787 |
|
|
|
Operating days (3) |
427 |
|
435 |
|
1,723 |
|
1,745 |
|
|
|
Fleet utilization (4) |
99.5 |
% |
97.8 |
% |
98.2 |
% |
97.6 |
% |
|
|
Average number of vessels (5) |
5.0 |
|
5.0 |
|
5.0 |
|
5.0 |
|
|
|
Daily time charter equivalent (TCE) rate (6) |
9,088 |
|
8,122 |
|
9,213 |
|
6,993 |
|
|
|
Daily operating expenses (7) |
5,640 |
|
5,267 |
|
5,438 |
|
5,005 |
|
|
Notes:
(1) Ownership days are the aggregate number of days in a period
during which each vessel in our fleet has been owned by us.
(2) Available days are the number of ownership days less the
aggregate number of days that our vessels are off-hire due to
scheduled repairs or repairs under guarantee, vessel upgrades or
special surveys.
(3) Operating days are the number of available days less the
aggregate number of days that the vessels are off-hire due to any
reason, including unforeseen circumstances but excluding days
during which vessels are seeking employment.
(4) We calculate fleet utilization by dividing the number of
operating days during a period by the number of available days
during the period.
(5) Average number of vessels is measured by the sum of the
number of days each vessel was part of our fleet during a relevant
period divided by the number of calendar days in such period.
(6) TCE rates are our voyage revenues less net revenues from our
bareboat charters less voyage expenses during a period divided by
the number of our available days during the period excluding
bareboat charter days, which is consistent with industry standards.
TCE is a measure not in accordance with GAAP.
(7) We calculate daily vessel operating expenses by dividing
vessel operating expenses by ownership days for the relevant time
period excluding bareboat charter days.
Voyage Revenues to Daily Time Charter
Equivalent (“TCE”) Reconciliation
|
|
|
|
|
|
|
|
Three months ended December 31, |
Year ended December
31, |
|
|
2018 |
2017 |
2018 |
2017 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
| Voyage
revenues |
4,361 |
3,952 |
17,354 |
13,852 |
| Less:
Voyage expenses |
462 |
342 |
1,188 |
1,352 |
| Net
revenue excluding bareboat charter revenue |
3,899 |
3,610 |
16,166 |
12,500 |
| Available
days net of bareboat charter days |
429 |
445 |
1,755 |
1,787 |
| Daily TCE
rate |
9,088 |
8,122 |
9,213 |
6,993 |
About Globus Maritime
LimitedGlobus is an integrated dry bulk shipping company
that provides marine transportation services worldwide and
presently owns, operates and manages a fleet of five dry bulk
vessels that transport iron ore, coal, grain, steel products,
cement, alumina and other dry bulk cargoes internationally. Globus’
subsidiaries own and operate five vessels with a total carrying
capacity of 300,571 Dwt and a weighted average age of 10.8 years as
of December 31, 2018.
Safe Harbor StatementThis
communication contains “forward-looking statements” as defined
under U.S. federal securities laws. Forward-looking statements
provide the Company’s current expectations or forecasts of future
events. Forward-looking statements include statements about the
Company’s expectations, beliefs, plans, objectives, intentions,
assumptions and other statements that are not historical facts or
that are not present facts or conditions. Words or phrases such as
“anticipate,” “believe,” “continue,” “estimate,” “expect,”
“intend,” “may,” “ongoing,” “plan,” “potential,” “predict,”
“project,” “will” or similar words or phrases, or the negatives of
those words or phrases, may identify forward-looking statements,
but the absence of these words does not necessarily mean that a
statement is not forward-looking. Forward-looking statements are
subject to known and unknown risks and uncertainties and are based
on potentially inaccurate assumptions that could cause actual
results to differ materially from those expected or implied by the
forward-looking statements. The Company’s actual results could
differ materially from those anticipated in forward-looking
statements for many reasons specifically as described in the
Company’s filings with the Securities and Exchange Commission.
Accordingly, you should not unduly rely on these forward-looking
statements, which speak only as of the date of this communication.
Globus undertakes no obligation to publicly revise any
forward-looking statement to reflect circumstances or events after
the date of this communication or to reflect the occurrence of
unanticipated events. You should, however, review the factors and
risks Globus describes in the reports it will file from time to
time with the Securities and Exchange Commission after the date of
this communication.
For further information please
contact:
| Globus Maritime
Limited |
+30 210 960 8300 |
| Athanasios Feidakis,
CEO |
a.g.feidakis@globusmaritime.gr |
| |
|
| Capital Link – New
YorkNicolas Bornozis |
+1 212 661
7566globus@capitallink.com |
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