Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and year ended December 31, 2021.
Highlights of the Fourth Quarter Ended
December 31, 2021:
- Revenues, net: $60.0 million for the three months ended
December 31, 2021, as compared to $4.4 million for the three months
ended December 31, 2020;
- Net income/loss: Net income of $29.2 million for the
three months ended December 31, 2021, as compared to net loss of
$0.8 million for the three months ended December 31,
2020;
- Earnings/Loss per common
share(1): $0.18 earnings per
share for the three months ended December 31, 2021, as compared to
loss per share of $0.06 for the three months ended December 31,
2020;
- EBITDA(2): $36.1
million for the three months ended December 31, 2021, as compared
to $0.3 million for the three months ended December 31,
2020;
- Cash and restricted cash of $43.4 million as of
December 31, 2021, as compared to $9.4 million as of December 31,
2020;
- On December 8, 2021, we redeemed all of the Series A
preferred shares at a cash redemption price of $30 per preferred
share as per the Company’s amended and restated statement of
designations; and
- During the fourth quarter of 2021 and as of the date of
this press release, we have taken successful delivery of three
vessels consisting of two Panamax dry bulk carriers and one Aframax
/LR2 tanker. As a result, Castor currently owns a diversified fleet
of 29 vessels with an aggregate capacity of 2.5 million dwt, having
more than quadrupled the number of the vessels it owns since
December 31, 2020.
Earnings Highlights of the Year Ended
December 31, 2021:
- Revenues, net: $132.0 million for the year ended
December 31, 2021, as compared to $12.5 million for the year ended
December 31, 2020;
- Net income/loss: Net income of $52.3 million for the
year ended December 31, 2021, as compared to net loss of $1.8
million for the year ended December 31, 2020;
- Earnings/Loss per common share
(1): $0.48 earnings per share for the year
ended December 31, 2021, as compared to loss per share of $0.26 for
the year ended December 31, 2020; and
- EBITDA(2): $69.9
million for the year ended December 31, 2021, as compared to $2.3
million for the year ended December 31, 2020.
(1) All share and per share amounts
disclosed throughout this press release and in the financial
information presented in Appendix B have been retroactively updated
to reflect the one-for-ten (1-for-10) reverse stock split effected
on May 28, 2021, unless otherwise indicated.
(2) EBITDA is not a recognized measure
under United States generally accepted accounting principles (“U.S.
GAAP”). Please refer to Appendix B for the definition and
reconciliation of this measure to the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer
of Castor commented:
"2021 was a transformational year for Castor. We
have grown exponentially ending the year with 29 vessels, on a
fully delivered basis, and we have enjoyed strong operating cash
flow especially in the second half of the year. We benefit from a
healthy liquidity position and low leverage and in January 2022 we
signed and drew down a new credit facility. We did not sell any
common shares under the ATM Program during the fourth quarter and
up to the date of this release. We will continue to seek attractive
acquisition opportunities to further pursue Castor’s growth
trajectory.”
Earnings Commentary:
Fourth Quarter ended December 31, 2021,
and 2020 Results
Vessel revenues, net of charterers’ commissions,
for the three months ended December 31, 2021, increased to $60.0
million from $4.4 million in the same period of 2020. This increase
was largely driven by the increase in our Available Days (defined
below) from 449 in the three months ended December 31, 2020, to
2,433 in the three months ended December 31, 2021, following the
acquisition and delivery to our fleet of 22 vessels since December
31, 2020. The increase in vessel revenues during the three months
ended December 31, 2021, as compared with the same period of 2020
was further underpinned by the healthy dry bulk shipping market
resulting in a Daily TCE Rate (1) (as defined below) for the
vessels of our fleet of more than double as compared to the same
period a year ago.
The increase in voyage expenses, from $0.1
million in the three months ended December 31, 2020, to $5.8
million in the same period of 2021, is mainly associated with (i)
increased port expenses and bunkers consumption expenses as a
result of having certain of our tanker vessels operating under
voyage charters in the fourth quarter of 2021, and (ii) increased
brokerage commission expenses, commensurate with the increase in
vessel revenues discussed above.
The increase in vessel operating expenses by
$11.7 million, from $3.1 million in the three months ended December
31, 2020 to $14.8 million in the same period of 2021, as well as
the increase in vessels’ depreciation and amortization costs by
$4.7 million, from $0.8 million in the three months ended December
31, 2020 to 5.5 million in the same period of 2021, mainly reflect
the increase in our Ownership Days following the expansion of our
fleet.
General and administrative expenses in the three
months ended December 31, 2021, amounted to $1.2 million, whereas,
in the same period of 2020 general and administrative expenses
totalled $0.6 million. This increase stemmed from higher corporate
fees primarily due to the growth of our company and our shareholder
base.
Management fees in the three months ended
December 31, 2021, amounted to $2.2 million, whereas, in the same
period of 2020 management fees totalled $0.5 million. This increase
in management fees is due to the substantial increase in our
Ownership Days for which our managers charge us with a daily
management fee, following the acquisitions discussed above.
During the three months ended December 31, 2021,
we incurred net interest costs and finance costs amounting to $1.1
million compared to $0.3 million during the same period in 2020.
The increase is mainly due to our higher level of weighted average
indebtedness during the three months ended December 31, 2021, as
compared with the same period of 2020.
(1) Daily TCE Rate is not a recognized measure
under U.S. GAAP. Please refer to Appendix B of this press release
for the definition and reconciliation of this measure to the most
directly comparable financial measure calculated and presented in
accordance with U.S. GAAP.
Recent Financial and
Business Developments Commentary:
Vessel acquisitions update
During the fourth quarter of 2021 and as of the
date of this earnings press release, we have taken delivery of
three vessels, aggregating to 23 completed vessel acquisitions
since the beginning of 2021.
Details and delivery information of our
completed acquisitions within the fourth quarter of 2021 and as of
the date of this press release are as follows:
|
Vessel Name |
Vessel Type |
DWT |
Year Built |
Country of Construction |
Purchase Price (in million) |
Delivery Date |
Dry Bulk Carriers |
|
|
|
|
|
|
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
$18.75 |
26 October 2021 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
$23.55 |
4 January 2022 |
Tankers |
|
|
|
|
|
|
Wonder Bellatrix |
Aframax/ LR2 |
115,341 |
2006 |
S. Korea |
$18.15 |
23 December 2021 |
Equity update
In connection with our ongoing at-the-market
common stock offering program (“ATM Program”), from June 15, 2021,
and as of December 31, 2021, we had raised net proceeds of $12.4
million by issuing and selling 4,654,240 common shares, after sales
commissions and other offering expenses paid of $0.5 million, at an
average price per share of $2.76.
From October 1, 2021 to date, no sales of common
shares have taken place under the ATM Program, and there have been
no subsequent warrant exercises under our currently effective
warrant schemes.
As of February 4, 2022, we had issued and
outstanding 94,610,088 common shares.
On December 8, 2021, pursuant to a decision
approved by our Board of Directors on November 8, 2021, we redeemed
all of the issued and outstanding Series A preferred shares. Based
on the amended and restated statement of designations of Castor
dated October 10, 2019, the holders of the Series A preferred
shares received a cash redemption of $30.00 per Series A Preferred
Share.
New Financings update
On November 24, 2021, we drew down, in two
tranches, our previously announced $23.15 million term loan
facility, through and secured by two of the Company’s dry bulk
vessel ship-owning subsidiaries, those owning the Magic Rainbow and
Magic Phoenix, and guaranteed by the Company. This facility has a
tenor of five years and bears interest at a margin over LIBOR per
annum.
Further, on January 12, 2022, we entered into a
$55.0 million senior secured term loan facility with a major
European bank, through and secured by five of the Company’s dry
bulk vessel ship-owning subsidiaries, those owning the Magic
Starlight, Magic Mars, Magic Pluto, Magic Perseus and the Magic
Vela, and guaranteed by the Company. This facility has a tenor of
five years from the drawdown date and bears interest at a margin
over adjusted SOFR per annum. The loan was drawn down in full on
January 13, 2022.
The Company has used and intends to use the net
proceeds from these facilities for general corporate purposes,
including supporting the Company’s growth plans.
Cash Flow update
Our consolidated cash position as of December
31, 2021, increased by $34.0 million, to $43.4 million, as compared
with our cash position on December 31, 2020. During the year ended
December 31, 2021, our cash position improved mainly as a result
of: (i) $60.8 million of net operating cash flows generated during
the year ended December 31, 2021, (ii) $156.9 million of net cash
proceeds pursuant to the three registered direct offerings of an
aggregate 42,405,770 common shares and the concurrent private
placement of an equivalent aggregate number of warrants on January
5, January 12 and April 7, 2021, (iii) net cash proceeds of
approximately $83.4 million resulting from subsequent exercises of
approximately 34.4 million warrants pursuant to the June 2020, July
2020 and the January 2021 equity offerings, that resulted in the
issuance of an equal number of common shares, (iv) net cash inflows
of approximately $95.3 million following our entry into four
secured loan facilities in January, April, July and November of
2021, and (v) $12.5 million of net cash proceeds pursuant to common
stock sales under our ATM Program. From these amounts, during the
year ended December 31, 2021, we used $348.6 million to fund the
growth and related capital expenditures of our fleet, whereas,
$14.4 million were used for the redemption of our Series A
Preferred Shares and $11.9 million were used for scheduled
principal repayments of our debt.
As of December 31, 2021, our total debt, gross
of unamortized deferred loan fees, was $103.8 million of which
$16.7 million is repayable within one year, as compared to $18.5
million of gross total debt as of December 31, 2020.
New employment agreements
On January 16, 2022, the Magic Twilight
commenced a time charter contract at a gross daily charter rate of
$16,500. The charter has a duration of about 60 days.
On January 26, 2022, the Magic Argo commenced a
time charter contract at a gross daily charter rate of $16,600. The
charter has a duration of about 60 days.
On January 28, 2022, the Magic Sun was fixed on
a time charter contract at a gross daily charter rate of $17,500
plus a one-time gross ballast bonus of $750,000. The charter is
expected to commence on or around February 27, 2022 and will have a
duration of about 60 days.
On February 1, 2022, the Magic Venus was fixed
on a time charter contract at a gross daily charter rate of $16,300
plus a one-time gross ballast bonus of $630,000. The charter is
expected to commence on or around February 15, 2022 and will have a
duration of about 40 days.
On February 3, 2022, the Magic Rainbow was fixed
on a time charter contract at a gross daily charter rate of
$16,000. The charter is expected to commence upon expiration of the
vessel’s current contract, on or around February 13, 2022 and will
have a duration of about 60 days.
On February 3, 2022, the Magic Vela was fixed on
a time charter contract at a gross daily charter rate of $16,000
plus a one-time gross ballast bonus of $550,000. The charter is
expected to commence on or around February 17, 2022 and will have a
duration of about 70 days.
On February 3, 2022, the Magic Nebula was fixed
on a time charter contract at a gross daily charter rate of
$23,500. The charter is expected to commence on or around February
28, 2022 and will have a duration of about 7 to about 9 months
(about means +/- 15 days) at the option of the Charterer.
Fleet Employment Status (as of February
4, 2022)
During the three months ended December 31, 2021,
we operated on average 26.8 vessels earning a Daily TCE Rate of
$22,299 as compared to an average 5.8 vessels earning a Daily TCE
Rate of $9,915 during the same period in 2020.
Our current employment profile is presented
below.
Vessel Name |
Type/ Country of Construction |
DWT |
Year Built |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Magic Orion |
Capesize dry bulk carrier / Japan |
180,200 |
2006 |
TC (1) period |
101% of BCI5TC (2) |
Oct-22 |
Jan-23 |
Magic Venus |
Kamsarmax dry bulk carrier / Japan |
83,416 |
2010 |
TC trip (3) |
$16,300 plus $630,000 Ballast Bonus |
Mar-23 |
Mar-23 |
Magic Thunder |
Kamsarmax dry bulk carrier / Japan |
83,375 |
2011 |
TC period |
100% of BPI5TC (4) |
Oct-22 |
Jan-23 |
Magic Argo |
Kamsarmax dry bulk carrier / Japan |
82,338 |
2009 |
TC trip |
$16,600 |
Mar-22 |
Mar-22 |
Magic Perseus |
Kamsarmax dry bulk carrier / Japan |
82,158 |
2013 |
TC period |
100% of BPI5TC |
Oct-22 |
Jan-23 |
Magic Starlight |
Kamsarmax dry bulk carrier / China |
81,048 |
2015 |
TC period |
$32,000 (5) |
Sep-22 |
Mar-23 |
Magic Twilight |
Kamsarmax dry bulk carrier / Korea |
80,283 |
2010 |
TC trip |
$16,500 |
Μar-22 |
Μar-22 |
Magic Nebula |
Kamsarmax dry bulk carrier / Korea |
80,281 |
2010 |
TC period |
$31,750 |
Feb-22 |
Μar -22 |
Magic Nova |
Panamax dry bulk carrier / Japan |
78,833 |
2010 |
TC period |
92% of BPI5TC |
Oct-22 |
Feb-23 |
Magic Mars |
Panamax dry bulk carrier / Korea |
76,822 |
2014 |
TC period |
$21,500 (6) |
Νοv-22 |
Feb-23 |
Magic Phoenix |
Panamax dry bulk carrier / Japan |
76,636 |
2008 |
TC period |
102% of BPI4TC (7) |
Sep-22 |
Dec-22 |
Magic Horizon |
Panamax dry bulk carrier / Japan |
76,619 |
2010 |
TC trip |
$20,100 |
Mar-22 |
Mar-22 |
Magic Moon |
Panamax dry bulk carrier / Japan |
76,602 |
2005 |
TC trip |
$17,500 |
Feb-22 |
Feb-22 |
Magic P |
Panamax dry bulk carrier / Japan |
76,453 |
2004 |
TC period |
$27,500 |
Apr-22 |
Jul-22 |
Magic Sun |
Panamax dry bulk carrier / Korea |
75,311 |
2001 |
TC trip (8) |
$17,500 plus $750,000 Ballast Bonus |
Apr-22 |
Apr-22 |
Magic Vela |
Panamax dry bulk carrier / China |
75,003 |
2011 |
TC trip (9) |
$16,000 plus $550,000 Ballast Bonus |
Apr-22 |
Apr-22 |
Magic Eclipse |
Panamax dry bulk carrier / Japan |
74,940 |
2011 |
TC period |
$28,500 |
Αpr-22 |
Jul-22 |
Magic Pluto |
Panamax dry bulk carrier / Japan |
74,940 |
2013 |
TC period |
91% of BPI5TC |
Nov-22 |
Feb-23 |
Magic Callisto |
Panamax dry bulk carrier / Japan |
74,930 |
2012 |
TC period |
101% of BPI4TC |
Oct-22 |
Jan-23 |
Magic Rainbow |
Panamax dry bulk carrier / China |
73,593 |
2007 |
TC period |
$25,000 |
Feb-22 |
Feb-22 |
Wonder Polaris |
Aframax / LR2 tanker / Korea |
115,351 |
2005 |
TC period |
$15,000 plus profit sharing |
Feb-22 |
Feb-22 |
Wonder Sirius |
Aframax / LR2 tanker / Korea |
115,341 |
2005 |
TC period |
$15,000 plus profit sharing |
Feb-22 |
May-22 |
Wonder Bellatrix |
Aframax / LR2 tanker / Korea |
115,341 |
2006 |
TC period |
$15,000 plus profit sharing |
Feb-22 |
Feb-22 |
Wonder Musica |
Aframax / LR2 tanker / Korea |
106,290 |
2004 |
Voyage |
$4,200 (10) |
3-Feb-22(11) |
N/A |
Wonder Avior |
Aframax / LR2 tanker / Korea |
106,162 |
2004 |
Unfixed |
N/A |
N/A |
N/A |
Wonder Arcturus |
Aframax / LR2 tanker / Korea |
106,149 |
2002 |
Voyage |
$14,000 (10) |
16-Feb-22(11) |
N/A |
Wonder Vega |
Aframax tanker / Korea |
106,062 |
2005 |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Mimosa |
Handysize tanker / Korea |
36,718 |
2006 |
Tanker Pool (13) |
N/A |
N/A |
N/A |
Wonder Formosa |
Handysize tanker / Korea |
36,660 |
2006 |
Tanker Pool (13) |
N/A |
N/A |
N/A |
(1) TC stands for time charter.
(2) The benchmark vessel used in the calculation of the average
of the Baltic Capesize Index 5TC routes is a non-scrubber fitted
180,000mt dwt vessel (Capesize) with specific age, speed -
consumption, and design characteristics.
(3) The charter is expected to commence on around
15/02/2022.
(4) The benchmark vessel used in the calculation of the average
of the Baltic Panamax Index 5TC routes is a non-scrubber fitted
82,500mt dwt vessel (Kamsarmax) with specific age, speed -
consumption, and design characteristics.
(5) The vessels’ daily gross charter rate is equal to 114% of
BPI4TC. In accordance with the prevailing charter party, on
19/10/2021 owners converted the index-linked rate to fixed from
01/01/2022 until 30/09/2022, at a rate of $32,000 per day. Upon
completion of said period, the rate will be converted back to index
linked.
(6) The vessels’ daily gross charter rate is equal to 91% of
BPI5TC. In accordance with the prevailing charter party, on
20/01/2022 owners converted the index-linked rate to fixed from
01/02/2022 until 30/09/2022, at a rate of $21,500 per day. Upon
completion of said period, the rate will be converted back to index
linked.
(7) The benchmark vessel used in the calculation of the average
of the Baltic Panamax Index 4TC routes is a non-scrubber fitted
74,000mt dwt vessel (Panamax) with specific age, speed -
consumption, and design characteristics.
(8) The charter is expected to commence on around
27/02/2022.
(9) The charter is expected to commence on around
17/02/2022.
(10) For vessels that are employed on the voyage/spot market,
the gross daily charter rate is considered as the Daily TCE Rate on
the basis of the expected completion date.
(11) Estimated completion date of the voyage.
(12) The vessel is currently participating in an
unaffiliated tanker pool specializing in the employment of Aframax
tanker vessels.
(13) The vessel is currently participating in an
unaffiliated tanker pool specializing in the employment of
Handysize tanker vessels.
Financial Results Overview:
|
Three Months Ended |
|
Year Ended |
(Expressed in U.S. dollars) |
|
December 31, 2021 (unaudited) |
|
December 31, 2020 (unaudited) |
|
|
December 31, 2021 (unaudited) |
|
December 31, 2020 (unaudited) |
Vessel revenues, net |
$ |
60,010,788 |
$ |
4,385,498 |
|
|
$ |
132,049,710 |
$ |
12,487,692 |
|
Operating income/ (loss) |
$ |
30,546,613 |
$ |
(475,406 |
) |
|
$ |
55,519,085 |
|
452,029 |
|
Net income/ (loss) |
$ |
29,210,843 |
$ |
(768,912 |
) |
|
$ |
52,270,487 |
$ |
(1,753,533 |
) |
EBITDA (1) |
$ |
36,127,417 |
$ |
276,579 |
|
|
$ |
69,910,529 |
$ |
2,327,671 |
|
Earnings/(Loss) per common share |
$ |
0.18 |
$ |
(0.06 |
) |
|
$ |
0.48 |
$ |
(0.26 |
) |
(1) EBITDA is not a recognized measure
under U.S. GAAP. Please refer to Appendix B of this press release
for the definition and reconciliation of this measure to the most
directly comparable financial measure calculated and presented in
accordance with U.S. GAAP.
Fleet selected financial and operational
data:
Set forth below are selected financial and
operational data of our fleet for each of the three months and year
ended December 31, 2021, and 2020, respectively, that we believe
are useful in analysing trends in our results of operations:
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Expressed in U.S. dollars except for operational
data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Ownership Days (1) (7) |
|
2,467 |
|
|
529 |
|
|
6,807 |
|
|
1,405 |
|
Available
Days (2)(7) |
|
2,433 |
|
|
449 |
|
|
6,657 |
|
|
1,267 |
|
Operating
Days (3) (7) |
|
2,419 |
|
|
442 |
|
|
6,562 |
|
|
1,259 |
|
Daily TCE
rate(4) |
$ |
22,299 |
|
$ |
9,915 |
|
$ |
17,891 |
|
$ |
9,395 |
|
Fleet
Utilization (5) |
|
99 |
% |
|
98 |
% |
|
99 |
% |
|
99 |
% |
Daily vessel
operating expenses (6) |
$ |
6,004 |
|
$ |
5,818 |
|
$ |
5,759 |
|
$ |
5,301 |
|
(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 off-hire and idle days.
(4) Daily TCE rate is not a recognized measure under U.S. GAAP.
Please refer to Appendix B of this press release for the definition
and reconciliation of this measure to 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 days (i.e., Ownership Days, Available
Days, Operating Days) may not be comparable to those reported by
other companies.
|
APPENDIX A CASTOR MARITIME INC.
Unaudited Condensed Consolidated Statements of
Comprehensive Income/ (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In U.S. dollars except for number of share data) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
REVENUES |
|
|
|
|
|
|
|
|
Vessel revenues, net |
$ |
60,010,788 |
|
$ |
4,385,498 |
|
$ |
132,049,710 |
|
$ |
12,487,692 |
|
EXPENSES |
|
|
|
|
|
|
|
|
Voyage expenses -including commissions to related party |
|
(5,756,397 |
) |
|
66,178 |
|
|
(12,950,783 |
) |
|
(584,705 |
) |
Vessel operating expenses |
|
(14,811,629 |
) |
|
(3,077,944 |
) |
|
(39,203,471 |
) |
|
(7,447,439 |
) |
General and administrative expenses (including related party
fees) |
|
(1,193,519 |
) |
|
(599,393 |
) |
|
(3,266,310 |
) |
|
(1,130,953 |
) |
Management fees -related parties |
|
(2,154,750 |
) |
|
(450,500 |
) |
|
(6,744,750 |
) |
|
(930,500 |
) |
Provision for doubtful accounts |
|
(2,483 |
) |
|
(37,103 |
) |
|
(2,483 |
) |
|
(37,103 |
) |
Depreciation and amortization |
|
(5,545,397 |
) |
|
(762,142 |
) |
|
(14,362,828 |
) |
|
(1,904,963 |
) |
Operating income/ (loss) |
$ |
30,546,613 |
|
$ |
(475,406 |
) |
$ |
55,519,085 |
|
$ |
452,029 |
|
Interest and finance costs, net (including related party interest
costs) (1) |
|
(1,062,469 |
) |
|
(261,709 |
) |
|
(2,779,875 |
) |
|
(2,154,601 |
) |
Other income, (expenses), net |
|
35,407 |
|
|
(10,157 |
) |
|
28,616 |
|
|
(29,321 |
) |
US source income taxes |
|
(308,708 |
) |
|
(21,640 |
) |
|
(497,339 |
) |
|
(21,640 |
) |
Net income/(loss) |
$ |
29,210,843 |
|
$ |
(768,912 |
) |
$ |
52,270,487 |
|
$ |
(1,753,533 |
) |
Less: Deemed dividend on Series A preferred shares
(2) |
|
(11,772,157 |
) |
|
— |
|
|
(11,772,157 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) to common shareholders |
|
17,438,686 |
|
|
(768,912 |
) |
|
40,498,330 |
|
|
(1,753,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per common share (basic) (3) |
$ |
0.18 |
|
$ |
(0.06 |
) |
$ |
0.48 |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per common share (diluted)
(3) |
$ |
0.18 |
|
$ |
(0.06 |
) |
$ |
0.47 |
|
$ |
(0.26 |
) |
Weighted average number of common shares outstanding, basic
(3): |
|
94,610,088 |
|
|
13,121,238 |
|
|
83,923,435 |
|
|
6,773,519 |
|
Weighted average number of common shares outstanding, diluted
(3): |
|
94,610,088 |
|
|
13,121,238 |
|
|
85,332,728 |
|
|
6,773,519 |
|
(1) Includes interest and finance costs and interest income, if
any.
(2) Represents the difference between the redemption value and
the carrying value of the Series A preferred shares.
|
CASTOR
MARITIME INC. Unaudited Condensed
Consolidated Balance Sheets
(Expressed in U.S. Dollars—except for number of share
data) |
|
|
|
|
|
|
|
December 31,
2021 |
|
December 31,
2020 |
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
37,173,736 |
$ |
8,926,903 |
Restricted cash |
|
2,382,732 |
|
— |
Due from related party |
|
— |
|
1,559,132 |
Other current assets |
|
15,443,620 |
|
3,078,119 |
Total current assets |
|
55,000,088 |
|
13,564,154 |
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
Vessels, net |
|
393,965,929 |
|
58,045,628 |
Advances for vessel acquisition |
|
2,368,165 |
|
— |
Restricted cash |
|
3,830,000 |
|
500,000 |
Due from related party |
|
810,437 |
|
— |
Other non-currents assets |
|
6,938,823 |
|
2,261,573 |
Total non-current assets, net |
|
407,913,354 |
|
60,807,201 |
Total assets |
|
462,913,442 |
|
74,371,355 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current portion of long-term debt, net – including related
party |
|
16,091,723 |
|
7,102,037 |
Due to related parties |
|
4,507,569 |
|
1,941 |
Other current liabilities |
|
13,430,104 |
|
3,799,929 |
Total current liabilities |
|
34,029,396 |
|
10,903,907 |
NON-CURRENT LIABILITIES: |
|
|
|
|
Long-term debt, net |
|
85,949,676 |
|
11,083,829 |
Total non-current liabilities |
|
85,949,676 |
|
11,083,829 |
Total liabilities |
|
119,979,072 |
|
21,987,736 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Common shares, $0.001 par value; 1,950,000,000 shares authorized;
94,610,088 and 13,121,238 shares, issued and outstanding as at
December 31, 2021 and 2020, respectively (3) |
|
94,610 |
|
13,121 |
Series A Preferred Shares- 0 shares issued and outstanding as at
December 31, 2021 and 480,000 shares issued and outstanding as at
December 31, 2020 |
|
— |
|
480 |
Series B Preferred Shares- 12,000 shares issued and outstanding as
at December 31, 2021 and 2020 |
|
12 |
|
12 |
Additional paid-in capital |
|
303,658,153 |
|
53,686,741 |
Retained Earnings/ (Accumulated Deficit) |
|
39,181,595 |
|
(1,316,735) |
Total shareholders’ equity |
|
342,934,370 |
|
52,383,619 |
Total liabilities and shareholders’ equity |
$ |
462,913,442 |
$ |
74,371,355 |
CASTOR MARITIME INC. Unaudited
Consolidated Statements of Cash Flows |
|
(Expressed in U.S. Dollars—except for number of share
data) |
|
Year Ended December 31, |
|
|
2021 |
|
|
2020 |
|
Cash
flows provided by/(used in) Operating Activities: |
|
|
|
|
Net
income/(loss) |
$ |
52,270,487 |
|
$ |
(1,753,533 |
) |
Adjustments to reconcile net income/(loss) to net cash
provided by/(used in) Operating activities: |
|
|
|
|
Depreciation
and amortization |
|
14,362,828 |
|
|
1,904,963 |
|
Amortization
and write-off of deferred finance charges |
|
414,629 |
|
|
599,087 |
|
Amortization
of other deferred charges |
|
— |
|
|
112,508 |
|
Deferred
revenue amortization |
|
— |
|
|
(430,994 |
) |
Amortization
of fair value of acquired time charter |
|
(1,940,000 |
) |
|
— |
|
Interest
settled in common stock |
|
— |
|
|
57,773 |
|
Amortization
and write-off of convertible notes beneficial conversion
feature |
|
— |
|
|
532,437 |
|
Provision
for doubtful accounts |
|
2,483 |
|
|
37,103 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts
receivable trade |
|
(6,924,622 |
) |
|
(1,122,836 |
) |
Inventories |
|
(3,722,061 |
) |
|
(571,284 |
) |
Due from/to
related parties |
|
5,254,323 |
|
|
(797,805 |
) |
Prepaid
expenses and other assets |
|
(3,406,066 |
) |
|
(885,828 |
) |
Dry-dock
costs paid |
|
(3,730,467 |
) |
|
(1,308,419 |
) |
Other
deferred charges |
|
(191,234 |
) |
|
26,494 |
|
Accounts
payable |
|
3,070,287 |
|
|
584,527 |
|
Accrued
liabilities |
|
1,495,032 |
|
|
625,894 |
|
Deferred
revenue |
|
3,819,708 |
|
|
46,104 |
|
Net
cash provided by/ (used in) Operating Activities |
|
60,775,327 |
|
|
(2,343,809 |
) |
|
|
|
|
|
Cash
flows used in Investing Activities: |
|
|
|
|
Vessel
acquisitions and other vessel improvements |
|
(346,273,252 |
) |
|
(35,472,173 |
) |
Advances for
vessel acquisition |
|
(2,367,455 |
) |
|
— |
|
Net
cash used in Investing Activities |
|
(348,640,707 |
) |
|
(35,472,173 |
) |
|
|
|
|
|
Cash
flows provided by Financing Activities: |
|
|
|
|
Gross
proceeds from issuance of common stock and warrants |
|
265,307,807 |
|
|
39,053,325 |
|
Common stock
issuance expenses |
|
(12,527,747 |
) |
|
(3,710,394 |
) |
Redemption
of series A preferred shares |
|
(14,400,000 |
) |
|
— |
|
Proceeds
from long-term debt |
|
97,190,000 |
|
|
9,500,000 |
|
Repayment of
related party debt |
|
(5,000,000 |
) |
|
— |
|
Repayment of
long-term debt |
|
(6,878,500 |
) |
|
(2,050,000 |
) |
Payment of
deferred financing costs |
|
(1,866,615 |
) |
|
(608,985 |
) |
Net
cash provided by Financing Activities |
|
321,824,945 |
|
|
42,183,946 |
|
|
|
|
|
|
Net
increase in cash, cash equivalents, and restricted
cash |
|
33,959,565 |
|
|
4,367,964 |
|
Cash, cash equivalents and restricted cash at the beginning
of the period |
|
9,426,903 |
|
|
5,058,939 |
|
Cash, cash equivalents and restricted cash at the end of
the period |
$ |
43,386,468 |
|
$ |
9,426,903 |
|
(3) All numbers of share and earnings per
share amounts in these unaudited condensed financial statements
have been retroactively adjusted to reflect the reverse stock split
effected on May 28, 2021.
APPENDIX B
Non-GAAP Financial
Information
Daily 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 calculated 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 charter, during
periods of commercial waiting time or while off-hire during dry
docking or due to other unforeseen circumstances. 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 Time charter revenues, net, the most directly comparable GAAP
measure, or any other measure of financial performance presented in
accordance with U.S. GAAP. However, 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 trips, time charter periods and voyage
charters) 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 reflects the calculation of our Daily TCE Rates for
the periods presented (amounts in U.S. dollars, except for
Available Days):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(In U.S. dollars, except for Available Days) |
|
2021 |
|
|
2020 |
|
2021 |
|
|
2020 |
|
Vessel revenues, net |
$ |
60,010,788 |
|
$ |
4,385,498 |
$ |
132,049,710 |
|
$ |
12,487,692 |
|
Voyage expenses -including commissions from related party |
|
(5,756,397 |
) |
|
66,178 |
|
(12,950,783 |
) |
|
(584,705 |
) |
TCE revenues |
$ |
54,254,391 |
|
$ |
4,451,676 |
$ |
119,098,927 |
|
$ |
11,902,987 |
|
Available Days |
|
2,433 |
|
|
449 |
|
6,657 |
|
|
1,267 |
|
Daily TCE Rate |
$ |
22,299 |
|
$ |
9,915 |
$ |
17,891 |
|
$ |
9,395 |
|
EBITDA. 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 performance
operating 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 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.
EBITDA as presented below may not be comparable to similarly titled
measures of other companies. The following table reconciles EBITDA
to net (loss)/income, the most directly comparable U.S. GAAP
financial measure, for the periods presented:
Reconciliation of Net Income/(Loss) to
EBITDA
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(In U.S. dollars) |
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss) |
$ |
29,210,843 |
$ |
(768,912 |
) |
$ |
52,270,487 |
$ |
(1,753,533 |
) |
Depreciation
and amortization |
|
5,545,397 |
|
762,142 |
|
|
14,362,828 |
|
1,904,963 |
|
Interest and
finance costs, net (including related party interest costs)
(1) |
|
1,062,469 |
|
261,709 |
|
|
2,779,875 |
|
2,154,601 |
|
US source
income taxes |
|
308,708 |
|
21,640 |
|
|
497,339 |
|
21,640 |
|
EBITDA |
$ |
36,127,417 |
$ |
276,579 |
|
$ |
69,910,529 |
$ |
2,327,671 |
|
(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. We undertake no obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise. 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 general dry bulk and tanker
shipping market conditions, including fluctuations in charter hire
rates and vessel values, the strength of world economies, our
future financial condition or results of operations and our future
revenues and expenses, 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, the stability
of Europe and the Euro, fluctuations in interest rates and foreign
exchange rates, changes in demand in the dry bulk and tanker
shipping industries, including the market for our vessels, changes
in our operating expenses, including bunker prices, dry docking and
insurance costs, our ability to fund future capital expenditures
and investments in the acquisition and refurbishment of our
vessels, our expectations regarding the availability of vessel
acquisitions and our ability to complete acquisition transactions
as planned, our ability to realize the expected benefits from our
vessel acquisitions, potential liability from pending or future
litigation and potential costs due to environmental damage and
vessel collisions, potential exposure or loss from investment in
derivative instruments (if any), changes in supply and demand in
the dry bulk and tanker shipping industry, including the market for
our vessels and the number of newbuildings under construction,
changes in seaborne and other transportation, 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,
our business strategy and other plans and objectives for future
operations, future sales of our securities in the public market,
the impact of adverse weather and natural disasters, impacts of
climate change and greenhouse gas restrictions, the length and
severity of the COVID-19 outbreak, the impact of public health
threats and outbreaks of other highly communicable diseases, the
impact of the expected discontinuance of LIBOR after 2021 on
interest rates of our debt that reference LIBOR, the availability
of financing and refinancing and grow our business, vessel
breakdowns and instances of off‐hire, potential exposure or loss
from investment in derivative instruments, potential conflicts of
interest involving our Chief Executive Officer, his family and
other members of our senior management, and our ability to complete
acquisition transactions as planned. Please see our filings with
the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties. 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.
CONTACT DETAILS For further
information please contact:
Petros Panagiotidis Chief Executive Officer
& Chief Financial Officer Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital Link Email:
castormaritime@capitallink.com
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