Performance Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2019
May 10 2019 - 7:45AM
Performance Shipping Inc. (NASDAQ: DCIX), (the “Company”), a global
shipping company specializing in the ownership of containerships,
today reported a net loss of $0.2 million for the first quarter of
2019, compared to a net loss of $3.9 million for the same period of
2018.
Time charter revenues were $5.5 million for the
first quarter of 2019, compared to $8.0 million for the same period
of 2018. This decrease was primarily due to the decrease in size of
the Company’s fleet, and was partially offset by the increased time
charter rates achieved as a result of improved market
conditions.
As of May 9, 2019, the Company had 26,753,851
shares of common stock issued and outstanding. The Company has been
advised by the Nasdaq Stock Market LLC (“Nasdaq”) that its common
shares, which trade on the Nasdaq under the symbol “DCIX,” have
regained compliance with the minimum bid price requirements under
Nasdaq Listing Rule 5450(a)(1).
Fleet
Employment Profile (As of May 9, 2019) |
|
Performance Shipping
Inc.’s fleet is employed as follows: |
|
|
|
|
|
|
|
|
Vessel |
Gross Rate (USD Per Day) |
Com* |
Charterers |
Delivery Date to Charterers** |
Redelivery Date to Owners*** |
Notes |
BUILT TEU |
2 Panamax Container Vessels |
|
|
|
|
|
|
|
PAMINA |
$11,950 |
5.00 |
% |
Hyundai Merchant
Marine Co., Ltd. |
23-Aug-18 |
5-May-19 |
|
|
$8,800 |
5.00 |
% |
5-May-19 |
5-Sep-19 - 5-Nov-19 |
|
2005
5,042 |
|
|
|
|
|
|
DOMINGO |
$12,800 |
3.50 |
% |
CMA CGM |
3-Aug-18 |
3-Apr-19 |
|
|
$10,500 |
3.50 |
% |
3-Apr-19 |
3-Sep-19 - 3-Nov-19 |
1 |
2001
3,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Post - Panamax Container Vessels |
|
|
|
|
|
|
|
PUCON |
$18,000 |
3.75 |
% |
Orient Overseas
Container Line Ltd. |
21-Jun-18 |
26-Mar-19 |
|
|
$15,000 |
3.75 |
% |
26-Mar-19 |
26-May-19 - 26-Jun-19 |
|
2006
6,541 |
|
|
|
|
|
|
ROTTERDAM |
$18,200 |
3.75 |
% |
Wan Hai Lines (Singapore) Pte Ltd. |
12-Jul-18 |
12-May-19 - 15-Jul-19 |
2 |
2008
6,494 |
|
|
|
|
|
* Total commission
paid to third parties. |
** In case of
newly acquired vessel with time charter attached, this date refers
to the expected/actual date of delivery of the vessel to the
Company. |
*** Range of
redelivery dates, with the actual date of redelivery being at the
Charterers’ option, but subject to the terms, conditions, and
exceptions of the particular charterparty. |
1 Vessel off hire
from April 3, 2019 to April 5, 2019. |
2 Based on the
latest information. |
Summary of
Selected Financial & Other Data |
|
|
|
For the three months ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
(unaudited) |
|
(unaudited) |
STATEMENT
OF OPERATIONS DATA (in thousands of US Dollars): |
|
Time charter revenues |
$ |
5,469 |
|
$ |
7,991 |
|
|
Voyage expenses |
|
278 |
|
|
380 |
|
|
Vessel operating expenses |
|
2,647 |
|
|
5,625 |
|
|
Net loss |
|
(181 |
) |
|
(3,945 |
) |
FLEET
DATA |
|
Average number of vessels |
|
4.0 |
|
|
10.5 |
|
|
Number of vessels |
|
4.0 |
|
|
8.0 |
|
|
Ownership days |
|
360 |
|
|
948 |
|
|
Available days |
|
360 |
|
|
948 |
|
|
Operating days |
|
356 |
|
|
854 |
|
|
Fleet utilization |
|
98.9 |
% |
|
90.1 |
% |
AVERAGE
DAILY RESULTS |
|
Time charter equivalent (TCE)
rate (1) |
$ |
14,419 |
|
$ |
8,028 |
|
|
Daily vessel operating
expenses (2) |
$ |
7,353 |
|
$ |
5,934 |
|
_____________________
(1) |
Time charter equivalent rates, or TCE rates, are defined as our
time charter revenues, net, less voyage expenses during a period
divided by the number of our available days during the period,
which is consistent with industry standards. Voyage expenses
include port charges, bunker (fuel) expenses, canal charges and
commissions. TCE is a non-GAAP measure. TCE rate is a standard
shipping industry performance measure used primarily to compare
daily earnings generated by vessels on time charters with daily
earnings generated by vessels on voyage charters, because charter
hire rates for vessels on voyage charters are generally not
expressed in per day amounts while charter hire rates for vessels
on time charters are generally expressed in such amounts. |
|
|
(2) |
Daily
vessel operating expenses, which include crew wages and related
costs, the cost of insurance and vessel registry, expenses relating
to repairs and maintenance, the costs of spares and consumable
stores, lubricant costs, tonnage taxes, regulatory fees,
environmental costs, lay-up expenses and other miscellaneous
expenses, are calculated by dividing vessel operating expenses by
ownership days for the relevant period. |
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
containerships. The Company’s vessels are employed primarily on
time charters with leading liner companies carrying containerized
cargo along worldwide shipping routes.
Cautionary Statement Regarding
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
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.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "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
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 strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for containership capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
(See financial tables attached)
PERFORMANCE SHIPPING INC. |
FINANCIAL TABLES |
Expressed in thousands of U.S. Dollars, except for share and per
share data |
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
|
2019 |
|
2018 |
REVENUES: |
|
|
|
|
|
Time charter revenues |
$ |
5,469 |
|
$ |
7,991 |
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
Voyage expenses |
|
278 |
|
|
380 |
|
|
Vessel operating expenses |
|
2,647 |
|
|
5,625 |
|
|
Depreciation and amortization
of deferred charges |
|
866 |
|
|
1,825 |
|
|
General and administrative
expenses |
|
1,908 |
|
|
1,945 |
|
|
Gain on vessels' sale |
|
- |
|
|
(2,289 |
) |
|
Foreign currency losses |
|
5 |
|
|
8 |
|
|
Operating gain /
(loss) |
$ |
(235 |
) |
$ |
497 |
|
|
|
|
|
|
|
OTHER
INCOME / (EXPENSES): |
|
|
|
|
|
Interest and finance
costs |
|
- |
|
|
(4,457 |
) |
|
Interest income |
|
54 |
|
|
15 |
|
|
Total other income /
(expenses), net |
$ |
54 |
|
$ |
(4,442 |
) |
|
|
|
|
|
|
Net
loss |
$ |
(181 |
) |
$ |
(3,945 |
) |
|
|
|
|
|
|
Loss per
common share, basic and diluted |
$ |
(0.01 |
) |
$ |
(0.67 |
) |
|
|
|
|
|
|
Weighted
average number of common shares, basic and diluted |
|
18,423,674 |
|
|
5,927,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS |
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
Net
loss |
$ |
(181 |
) |
$ |
(3,945 |
) |
|
|
|
|
|
|
Comprehensive loss |
$ |
(181 |
) |
$ |
(3,945 |
) |
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
|
|
(Expressed in
thousands of US Dollars) |
|
|
|
|
|
March 31, 2019 |
|
December 31, 2018* |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
17,396 |
$ |
10,493 |
Vessels, net |
|
85,132 |
|
85,870 |
Other fixed assets, net |
|
989 |
|
998 |
Other assets |
|
2,942 |
|
2,725 |
|
Total assets |
$ |
106,459 |
$ |
100,086 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
$ |
2,706 |
$ |
4,510 |
Total stockholders' equity |
|
103,753 |
|
95,576 |
|
Total liabilities and stockholders' equity |
$ |
106,459 |
$ |
100,086 |
|
|
|
|
|
|
* The balance
sheet data as of December 31, 2018 has been derived from the
audited consolidated financial statements at that date. |
OTHER FINANCIAL
DATA |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
(unaudited) |
|
(unaudited) |
Net Cash provided by / (used in) Operating Activities |
$ |
8 |
$ |
(21 |
) |
Net Cash provided by Investing Activities |
|
443 |
|
30,606 |
|
Net Cash provided by / (used in) Financing Activities |
|
6,452 |
|
(31,950 |
) |
Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy Officer and Secretary
Telephone: + 30-216-600-2400
Email: izafirakis@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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