Maroussi, Greece, November 14,
2022 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS) (the
“Company” or “Pyxis Tankers”), an international pure play product
tanker company, today announced its unaudited results for the three
and nine month periods ended September 30, 2022.
Summary
For the three months ended September 30, 2022,
our Revenues, net were $17.0 million. For the same period, our time
charter equivalent (“TCE”) revenues were $12.0 million,
representing an increase of approximately $8.5 million or 248% over
the comparable period in 2021. Our net income attributable to
common shareholders for the three months ended September 30, 2022
was $5.1 million, representing an increase of $8.8 million from a
net loss of $3.7 million in the comparable period of 2021. For the
third quarter of 2022, the net income per share was $0.48 basic and
$0.42 diluted compared to net loss $0.39 (basic and diluted) for
the same period in 2021. Our Adjusted EBITDA for the three months
ended September 30, 2022 was $8.0 million, which represented an
increase of $9.2 million over the third quarter of 2021. Please see
“Non-GAAP Measures and Definitions” below.
Valentios Valentis, our Chairman and CEO
commented:
“We are pleased to report the continuation of
strong financial results for our third fiscal quarter in 2022 with
Revenue, net of $17 million and Net Income of $5.3 million.
Expanding mobility in many parts of the world has resulted in
solid demand for transportation fuels. Low inventories of
many petroleum products combined with the war in the Ukraine has
led to further market dislocation, including arbitrage
opportunities, shifting trade patterns and ton-mile expansion of
seaborne cargoes that continued to support robust chartering
activity for product tankers and allowed us to effectively capture
the strong market.
We continue to employ our five Eco- MR’s under a
mixed chartering strategy of short-term time charters and spot
voyages. During the three months ended September 30, 2022, our
daily TCE rate almost grew by a factor of four to $29,062 compared
to the same period in 2021. As of November 10th, 82% of the
available days in Q4, 2022 for our MR’s were booked at an estimated
average TCE of $36,800 per vessel, including three vessels
contracted under short-term time charters at an average rate of
$32,600 and two MR’s employed in the spot market at an average rate
of $47,700.
We expect charter rates to stay elevated due to
seasonal demand which should be amplified by the impact of the EU
ban on Russian refined products effective early February, 2023 as
well as the Chinese government authorization for its refineries to
export approximately 120 million barrels of diesel, gasoline and
jet fuel starting this month. A leading research analyst recently
estimated that EU embargo could result in an incremental 8% growth
in vessel demand. The additional Chinese exports can be viewed in
context of the magnitude of the 180 Mb aggregate release from the
Strategic Petroleum Reserve by the US government starting May of
this year. Our positive outlook is further supported by longer-term
supply/demand sector fundamentals, such as, the historically low
order book for MR’s. We expect MR tanker supply to grow about 2%
net in 2023. However, we do have concerns about the potential
negative impacts of rising global inflation, higher interest rates,
possible global recession and, of course, the ongoing war.
Given the recent high asset value environment,
it continues to be very challenging to develop opportunities for
fleet expansion, especially for the purchase of modern
eco-efficient MR’s. In view of this, we maintain our disciplined
approach to capital allocation until more attractive situations
materialize which may further enable us to maximize shareholder
value. In the meantime, we expect to continue to use free cash flow
to enhance our balance sheet liquidity and reduce leverage.”
Results for the three months ended September 30, 2021
and 2022
For the three months ended September 30, 2022,
we reported Revenues, net of $17.0 million, or 143% higher than
$7.0 million in the comparable 2021 period. Our net income
attributable to common shareholders was $5.1 million, or $0.48
basic and $0.42 diluted net income per share, compared to a net
loss of $3.7 million, or $0.39 basic and diluted loss per share,
for the same period in 2021. The weighted average number of basic
share count had increased by 1.0 million shares from 9.6 million
common shares in the third quarter of 2021 to approximately 10.6
million common shares in the same period of 2022. The average MR
daily TCE rate during the third quarter of 2022 was $29,062 or 297%
higher than the $7,326 MR daily TCE rate for the same period in
2021, due to improved market conditions. The revenue mix for the
third quarter of 2022, was 35% from short-term time charters and
65% from spot market employment. Our Adjusted EBITDA increased by
$9.2 million to $8.0 million for the three months ended September
30, 2022.
Results for the nine months ended September 30, 2021 and
2022
For the nine months ended September 30, 2022, we
reported Revenues, net, of $40.0 million, an increase of $22.7
million, or 132%, from $17.2 million in the comparable period of
2021 primarily due to higher spot charter rates. The revenue mix
for the nine months of 2022, was 29% from short-term time charters
and 71% from spot market employment, resulting in an overall MR
daily TCE rate for our fleet of $23,079.
Our net income attributable to common
shareholders for the nine months ended September 30, 2022, was $6.0
million, or $0.57 basic and $0.53 diluted net income per share,
compared to a net loss of $7.3 million, or a loss of $0.83 per
share (basic and diluted) for the same period in 2021. Higher MR
daily TCE rate of $23,079 and lower MR fleet utilization of 86.4%
for our MR’s during the nine months ended September 30, 2022, were
compared to a MR daily TCE rate of $10,729 and MR fleet utilization
of 95.3%, respectively, during the same period in 2021. Operating
expenses and vessel management fees were comparatively higher in
2022 as a result of the vessel additions of the “Pyxis Karteria”
and “Pyxis Lamda” during the second half of 2021, partly offset by
the sales of the two small tankers during the first quarter of
2022. Our Adjusted EBITDA of $14.5 million represented an increase
of $14.7 million from an Adjusted EBITDA loss of $0.1 million for
the same nine month period in 2021.
|
|
Three months ended September
30, |
|
Nine months ended
September 30, |
(Amounts in thousands of U.S. dollars, except for
daily TCE rates) |
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
MR Revenues, net 1 |
$ |
4,808 |
$ |
16,998 |
$ |
11,914 |
$ |
39,371 |
MR Voyage related costs and commissions 1 |
|
(2,500) |
|
(5,024) |
|
(2,752) |
|
(12,437) |
MR Time charter equivalent revenues 1, 2 |
$ |
2,308 |
$ |
11,974 |
$ |
9,162 |
$ |
26,934 |
|
|
|
|
|
|
|
|
|
MR Total operating days 1 |
|
315 |
|
412 |
|
854 |
|
1,167 |
|
|
|
|
|
|
|
|
|
MR Daily time charter equivalent rate 1, 2 |
|
$7,326 |
|
$29,062 |
|
$10,729 |
|
$23,079 |
1 Our non-core small tankers, “Northsea Alpha”
and “Northsea Beta”, which were sold on January 28, 2022 and March
1, 2022 respectively, have been excluded in the above table. Both
vessels were under spot employment for approximately 7 and 36 days,
respectively, in 2022 as of the delivery date to their buyer. For
the nine months ended September 30, 2022, “Revenues, net”
attributable to these vessels was $595 thousands and “Voyage
related costs and commissions” was $386 thousands.2 Subject to
rounding; please see “Non-GAAP Measures and Definitions” below.
Management’s Discussion and Analysis of Financial
Results for the Three Months ended September 30, 2021
and 2022
(Amounts are presented in million U.S. dollars, rounded to the
nearest one hundred thousand, except as otherwise noted)
Amounts relating to variations in
period–on–period comparisons shown in this section are derived from
the unaudited interim consolidated financials presented below.
Revenues, net: Revenues, net of $17.0 million
for the three months ended September 30, 2022, represented an
increase of $10.0 million, or 143%, from $7.0 million in the
comparable period of 2021 as a result of significantly higher
charter rates and higher spot employment for our MR’s. In the third
quarter of 2022, our MR daily TCE rate for our fleet was $29,062, a
$21,736 per day increase from the same period in 2021 as a result
of the improvement in charter rates, partly offset by a $1.5
million increase in the voyage related costs and commissions
discussed below.
Voyage related costs and commissions: Voyage
related costs and commissions of $5.0 million in the third quarter
of 2022, represented an increase of $1.5 million, or 40.6%, from
$3.6 million in the same period of 2021, primarily as a result of
increased spot employment for our MR’s and substantially higher
average bunker fuel costs. Under spot charters, all voyage expenses
are typically borne by us rather than the charterer and an increase
in spot employment results in increased voyage related costs and
commissions.
Vessel operating expenses: Vessel operating
expenses of $3.1 million for the three months ended September 30,
2022, represented a decrease of $0.6 million, or 15.2%, compared to
the same period in 2021, which was mainly attributed to more
normalized operating costs of the Pyxis Karteria which was acquired
in the third quarter of 2021 and the sales of “Northsea Alpha” and
“Northsea Beta” which occurred during the first quarter of 2022.
Fleet ownership days for the three months ended September 30, 2022
was 460 days, compared to 537 days for the same period in 2021.
General and administrative expenses: General and
administrative expenses for the quarter ended September 30, 2022
were $0.6 million, compared to $0.7 million in the comparable
period in 2021, represented a decrease of $0.1 million 2021,
primarily attributed to higher legal fees in the prior period.
Management fees: For the three months ended
September 30, 2022, management fees charged from our ship manager,
Pyxis Maritime Corp. (“Maritime”), an entity affiliated with our
Chairman and Chief Executive Officer, Mr.
Valentis, and to International Tanker Management
Ltd. (“ITM”), our fleet’s technical manager, remained relatively
flat at $0.4 million from the comparable period in 2021.
Amortization of special survey costs:
Amortization of special survey costs of $0.1 million for the
quarter ended September 30, 2022, remained relatively
flat compared to the same period in 2021.
Depreciation: Depreciation of $1.5 million for
the quarter ended September 30, 2022, increased by $0.2 million or
15.3% compared to $1.3 million in the same period of 2021. The
increase was attributed to the acquisition of vessels
“Pyxis Karteria” and “Pyxis Lamda” during the second half of
2021 partly offset by the ceasing of depreciation for vessels
“Northsea Alpha” and “Northsea Beta” which were classified as held
for sale at the end of 2021 and were sold during the first quarter
of 2022.
Gain from financial derivative instruments:
During the three months ended September 30, 2022, we recorded a
gain from financial derivative instruments of $0.2 million related
to the valuation of the interest rate cap purchased in
July 2021, for the amount of $9.6 million at a cap rate of 2%
with a termination date of July 8, 2025.
Interest and finance costs, net: Interest and
finance costs, net, for the quarter ended September 30, 2022, were
$1.2 million, compared to $0.7 million in the comparable
period in 2021, an increase of $0.5 million, or 62.3%. This
increase was primarily attributable to higher debt balances
accompanying the acquisition of vessels “Pyxis Karteria” and
“Pyxis Lamda” and higher LIBOR rates paid on all the floating rate
bank debt.
Management’s Discussion and Analysis of Financial
Results for the Nine Months ended September 30, 2021
and 2022
(Amounts are presented in million U.S. dollars, rounded to the
nearest one hundred thousand, except as otherwise noted)
Amounts relating to variations in
period–on–period comparisons shown in this section are derived from
the unaudited interim consolidated financials presented below.
Revenues, net: Revenues, net of $40.0 million
for the nine months ended September 30, 2022, represented an
increase of $22.7 million, or 132%, from $17.2 million in the
comparable period of 2021 as a result of significantly higher spot
market rates and greater spot employment for our MR’s, including a
535-day increase in spot operating days, from 161 days during the
same period in 2021. The increase in Revenues, net was partially
offset by a decrease of 8.9% in fleet utilization from 95.3% in the
same period of 2021 to 86.4% for the nine months ended September
30, 2022. In the nine months of 2022, our MR daily TCE rate for our
fleet was $23,079, a $12,350 per day increase from the same 2021
period as a result of higher charter rates, partly offset by a $7.4
million increase in the voyage related costs and commissions
discussed below.
Voyage related costs and commissions: Voyage
related costs and commissions of $12.8 million for the nine months
ended September 30, 2022, represented an increase of $7.4 million,
or 139%, from $5.4 million in the same period in 2021. For the nine
months ended September 30, 2022, our MR’s were on spot charters for
696 days in total, compared to 161 days for the respective period
in 2021. This higher spot chartering activity for our MR’s
contributed higher voyage costs which are typically borne by us
rather than the charterer, thus an increase in spot employment
results in increased voyage related costs and commissions.
Vessel operating expenses: Vessel operating
expenses of $9.4 million for the nine months ended September 30,
2022, represented a $0.4 million or 4.8% increase compared to $9.0
million for the same period in 2021. This increase mainly
attributed to the addition of the “Pyxis Karteria” and “Pyxis
Lamda” to our fleet in the second half of 2021, partially offset by
the sales of “Northsea Alpha” and “Northsea Beta” which occurred
during the first quarter, 2022.
General and administrative expenses: General and
administrative expenses of $1.9 million for the nine months ended
September 30, 2022, remained flat compared to the same period in
2021.
Management fees: For the nine months ended
September 30, 2022, management fees payable to Maritime and ITM of
$1.3 million in the aggregate, represented an increase of $0.2
million compared to the nine months ended September 30, 2021, as a
result of the vessel additions in our fleet and the increase in the
daily management fees paid to Maritime which increases annually in
line with the inflation rate in Greece.
Amortization of special survey costs:
Amortization of special survey costs of $0.3 million for the nine
months ended September 30, 2022, remained flat compared to the same
period in 2021.
Depreciation: Depreciation of $4.6 million for
the nine months ended September 30, 2022, increased by $1.0 million
or 29.3% compared to $3.5 million in the comparable period of 2021.
The increase was attributed to the acquisition of vessels
“Pyxis Karteria” and “Pyxis Lamda” after the second half of
2021 partly offset by the ceasing of depreciation for vessels
“Northsea Alpha” and “Northsea Beta” which were classified as held
for sale at the end of 2021 and were sold during the first quarter
of 2022.
Loss from the sale of vessels, net: During the
nine months ended September 30, 2022, we recorded a transaction
loss from the sale of the “Northsea Alpha” and “Northsea Beta” of
$0.5 million related to the reposition costs for the delivery of
the vessels to their buyer on January 28, 2022 and March 1, 2022,
respectively. No such expense was recorded for the comparable
period in 2021.
Loss from debt extinguishment: During the nine
months ended September 30, 2022, we recorded a loss from debt
extinguishment of approximately $34 thousand reflecting the
write-off of the remaining unamortized balance of deferred
financing costs, which were associated with the repayment of the
“Northsea Alpha” and “Northsea Beta” loans during the first quarter
of 2022. For the nine months ended September 30, 2021 we recorded a
loss from debt extinguishment of $0.5 million primarily reflecting
a prepayment fee and the write-off of the remaining unamortized
balance of deferred financing costs, both of which were associated
with the loan on the “Pyxis Epsilon” that was refinanced at the end
of the first quarter in 2021.
Gain from financial derivative instruments:
During the nine months ended September 30, 2022, we recorded a gain
from financial derivative instruments amounted to $0.5 million
related to the valuation of the $9.6 million interest rate cap
purchased in July 2021.
Interest and finance costs, net: Interest and
finance costs, net, was $3.0 million for the nine months ended
September 30, 2022, compared to $2.5 million in the comparable
period in 2021. This increase was primarily attributable to higher
average outstanding debt balances in 2022 accompanying the
acquisition of vessels “Pyxis Karteria” and “Pyxis Lamda” and
higher LIBOR rates paid on all the floating rate bank debt.
Unaudited Interim Consolidated Statements of
Comprehensive Income/Loss
For the three months ended September 30, 2021 and 2022(Expressed
in thousands of U.S. dollars, except for share and per share
data)
|
|
|
Three months ended September
30, |
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
Revenues,
net |
|
|
$
7,009 |
|
$
16,998 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage related costs and
commissions |
|
|
(3,570) |
|
(5,021) |
Vessel operating expenses |
|
|
(3,648) |
|
(3,095) |
General and administrative
expenses |
|
|
(673) |
|
(574) |
Management fees, related
parties |
|
|
(179) |
|
(154) |
Management fees, other |
|
|
(227) |
|
(200) |
Amortization of special survey
costs |
|
|
(103) |
|
(91) |
Depreciation |
|
|
(1,334) |
|
(1,538) |
Bad debt provisions |
|
|
— |
|
50 |
Allowance for credit
losses |
|
|
— |
|
(45) |
Operating income /
(loss) |
|
|
(2,725) |
|
6,330 |
|
|
|
|
|
|
Other
expenses: |
|
|
|
|
|
Gain/(Loss) from financial
derivative instrument |
|
|
(18) |
|
191 |
Interest and finance costs,
net |
|
|
(735) |
|
(1,193) |
Total other expenses,
net |
|
|
(753) |
|
(1,002) |
|
|
|
|
|
|
Net income /
(loss) |
|
|
$
(3,478) |
|
$
5,328 |
|
|
|
|
|
|
Dividend Series A Convertible
Preferred Stock |
|
|
(228) |
|
(218) |
|
|
|
|
|
|
Net income / (loss)
attributable to common shareholders |
|
|
$
(3,706) |
|
$
5,110 |
|
|
|
|
|
|
Income / (loss) per common
share, basic |
|
|
$
(0.39) |
|
$
0.48 |
Income / (loss) per common
share, diluted |
|
|
$
(0.39) |
|
$
0.42 |
|
|
|
|
|
|
Weighted average number of
common shares, basic |
|
|
9,579,214 |
|
10,613,424 |
Weighted average number of
common shares, diluted |
|
|
9,579,214 |
|
12,641,229 |
Unaudited Interim Consolidated Statements of
Comprehensive Income/Loss
For the nine months ended September 30, 2021 and 2022(Expressed
in thousands of U.S. dollars, except for share and per share
data)
|
|
|
|
|
Nine months ended
September 30, |
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
Revenues,
net |
|
|
|
$ |
17,237 |
$ |
39,966 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Voyage related costs and
commissions |
|
|
|
|
(5,374) |
|
(12,823) |
Vessel operating expenses |
|
|
|
|
(8,990) |
|
(9,419) |
General and administrative
expenses |
|
|
|
|
(1,899) |
|
(1,886) |
Management fees, related
parties |
|
|
|
|
(479) |
|
(548) |
Management fees, other |
|
|
|
|
(614) |
|
(716) |
Amortization of special survey
costs |
|
|
|
|
(306) |
|
(266) |
Depreciation |
|
|
|
|
(3,528) |
|
(4,562) |
Allowance for credit
losses |
|
|
|
|
(9) |
|
(49) |
Loss from the sale of vessels,
net |
|
|
|
|
— |
|
(466) |
Operating
income /
(loss) |
|
|
|
|
(3,962) |
|
9,231 |
|
|
|
|
|
|
|
|
Other expenses,
net: |
|
|
|
|
|
|
|
Loss from debt
extinguishment |
|
|
|
|
(458) |
|
(34) |
Gain/(Loss) from financial
derivative instruments |
|
|
|
|
(18) |
|
511 |
Interest and finance costs,
net |
|
|
|
|
(2,485) |
|
(3,022) |
Total other expenses,
net |
|
|
|
|
(2,961) |
|
(2,545) |
|
|
|
|
|
|
|
|
Net
income /
(loss) |
|
|
|
$ |
(6,923) |
$ |
6,686 |
|
|
|
|
|
|
|
|
Dividend Series A Convertible
Preferred Stock |
|
|
|
|
(381) |
|
(667) |
|
|
|
|
|
|
|
|
Net income / (loss)
attributable to common shareholders |
|
|
|
$ |
(7,304) |
$ |
6,019 |
|
|
|
|
|
|
|
|
Income / (loss) per common
share, basic |
|
|
|
$ |
(0.83) |
$ |
0.57 |
Income / (loss) per common share, diluted |
|
|
|
$ |
(0.83) |
$ |
0.53 |
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic |
|
|
|
|
8,752,328 |
|
10,613,424 |
Weighted average number of common shares, diluted |
|
|
|
|
8,752,328 |
|
12,641,229 |
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
As of December 31, 2021 and September 30, 2022
(unaudited)(Expressed in thousands of U.S. dollars, except for
share and per share data)
|
|
|
|
|
December 31, |
|
September 30, |
Consolidated Balance
Sheets |
|
|
|
|
2021 |
|
2022 (unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
6,180 |
$ |
4,250 |
Restricted cash, current portion |
|
|
|
|
944 |
|
350
|
Inventories |
|
|
|
|
1,567 |
|
2,819 |
Trade accounts receivable, net |
|
|
|
|
1,716 |
|
9,035 |
Vessels held-for-sale |
|
|
|
|
8,509 |
|
— |
Prepayments and other current assets |
|
|
|
|
186 |
|
315 |
Insurance claim receivable |
|
|
|
|
— |
|
1,894 |
Total current assets |
|
|
|
|
19,102 |
|
18,663 |
|
|
|
|
|
|
|
|
FIXED ASSETS, NET: |
|
|
|
|
|
|
|
Vessels, net |
|
|
|
|
119,724 |
|
115,717 |
Total fixed assets,
net |
|
|
|
|
119,724 |
|
115,717 |
|
|
|
|
|
|
|
|
OTHER NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
Restricted cash, net of current
portion |
|
|
|
|
2,750 |
|
2,250 |
Financial derivative instrument |
|
|
|
|
74 |
|
585 |
Deferred dry dock and special survey
costs, net |
|
|
|
|
912 |
|
835 |
Total other non-current
assets |
|
|
|
|
3,736 |
|
3,670 |
Total assets |
|
|
|
$ |
142,562 |
$ |
138,050 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Current portion of long-term debt, net of
deferred financing costs |
|
|
|
$ |
11,695 |
$ |
5,823 |
Trade accounts payable |
|
|
|
|
3,084 |
|
3,486 |
Due to related parties |
|
|
|
|
6,962 |
|
5,564 |
Hire collected in advance |
|
|
|
|
— |
|
918 |
Accrued and other liabilities |
|
|
|
|
1,089 |
|
867 |
Total current
liabilities |
|
|
|
|
22,830 |
|
16,658 |
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Long-term debt, net of current portion and
deferred financing costs |
|
|
|
|
64,880 |
|
60,508 |
Promissory note |
|
|
|
|
6,000 |
|
6,000 |
Total non-current
liabilities |
|
|
|
|
70,880 |
|
66,508 |
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
— |
|
— |
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
Preferred stock ($0.001 par value;
50,000,000 shares authorized; of which 1,000,000 authorized Series
A Convertible Preferred Shares; 449,673 Series A Convertible
Preferred Shares issued and outstanding as at December 31,
2021 and September 30, 2022) |
|
|
|
|
— |
|
— |
Common stock ($0.001 par value;
450,000,000 shares authorized; 10,613,424 shares issued and
outstanding as at December 31, 2021 and September 30, 2022,
respectively) |
|
|
|
|
42 |
|
42 |
Additional paid-in capital |
|
|
|
|
111,840 |
|
111,840 |
Accumulated deficit |
|
|
|
|
(63,030) |
|
(56,998) |
Total stockholders'
equity |
|
|
|
|
48,852 |
|
54,884 |
Total liabilities and
stockholders' equity |
|
|
|
$ |
142,562 |
$ |
138,050 |
Unaudited Interim Consolidated Statements of Cash
Flows
For the nine months ended September 30, 2021 and 2022(Expressed
in thousands of U.S. dollars)
|
|
|
|
|
Nine months ended
September 30, |
|
|
|
|
|
2021 |
|
2022 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income / (loss) |
|
|
|
$ |
(6,923) |
$ |
6,686 |
Adjustments to reconcile net loss to net cash provided by
operating activities: |
|
|
|
|
Depreciation |
|
|
|
|
3,528 |
|
4,562 |
Amortization and write-off of
special survey costs |
|
|
|
|
306 |
|
266 |
Allowance for credit
losses |
|
|
|
|
— |
|
49 |
Amortization and write-off of
financing costs |
|
|
|
|
171 |
|
229 |
Loss from debt
extinguishment |
|
|
|
|
458 |
|
34 |
Gain/Loss from financial
derivative instruments |
|
|
|
|
18 |
|
(511) |
Issuance of common stock under
the promissory note |
|
|
|
|
55 |
|
— |
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Inventories |
|
|
|
|
(385) |
|
(1,252) |
Due to related parties |
|
|
|
|
2,428 |
|
1,596 |
Trade accounts receivable,
net |
|
|
|
|
(1,282) |
|
(7,368) |
Prepayments and other
assets |
|
|
|
|
(127) |
|
(129) |
Insurance claim
receivable |
|
|
|
|
— |
|
(1,894) |
Special survey cost |
|
|
|
|
— |
|
(442) |
Trade accounts payable |
|
|
|
|
(933) |
|
655 |
Hire collected in advance |
|
|
|
|
(726) |
|
918 |
Accrued and other
liabilities |
|
|
|
|
(11) |
|
(222) |
Net cash provided by /
(used in) operating activities |
|
|
|
$ |
(3,423) |
$ |
3,177 |
|
|
|
|
|
|
|
|
Cash flow from
investing activities: |
|
|
|
|
|
|
|
Proceeds from the sale of
vessel, net |
|
|
|
|
— |
|
8,509 |
Payments for vessel
acquisition |
|
|
|
|
(20,000) |
|
(2,995) |
Ballast water treatment system
installation |
|
|
|
|
(155) |
|
(555) |
Vessel additions |
|
|
|
|
(3) |
|
— |
Net cash provided by /
(used in) investing activities |
|
|
|
$ |
(20,158) |
$ |
4,959 |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from long-term
debt |
|
|
|
|
30,500 |
|
— |
Repayment of long-term
debt |
|
|
|
|
(27,150) |
|
(10,505) |
Gross proceeds from issuance
of common stock |
|
|
|
|
25,000 |
|
— |
Common stock offering
costs |
|
|
|
|
(1,860) |
|
— |
Gross proceeds from the
issuance of Series A Convertible Preferred units |
|
|
|
|
6,170 |
|
— |
Preferred shares offering
costs |
|
|
|
|
(512) |
|
— |
Proceeds from exercise of
warrants into common shares |
|
|
|
|
202 |
|
— |
Repayment of promissory
note |
|
|
|
|
(1,000) |
|
— |
Financial derivative
instrument |
|
|
|
|
(74) |
|
— |
Payment of financing
costs |
|
|
|
|
(625) |
|
(1) |
Preferred stock dividends
paid |
|
|
|
|
(318) |
|
(654) |
Net cash (used in) /
provided by financing activities |
|
|
|
$ |
30,333 |
$ |
(11,160) |
|
|
|
|
|
|
|
|
Net (decrease) / increase in
cash and cash equivalents and restricted cash |
|
|
|
|
6,752 |
|
(3,024) |
Cash and cash
equivalents and restricted cash at the beginning of the period |
|
|
|
4,037 |
|
9,874 |
Cash and
cash equivalents and restricted cash at the end of the
period |
|
$ |
10,789 |
$ |
6,850 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
|
Cash paid for interest |
|
|
|
$ |
2,298 |
$ |
2,773 |
Unpaid portion of vessel additions |
|
|
|
|
28 |
|
— |
Non-cash financing
activities-issuance of common stock under the promissory note |
|
|
|
1,055 |
|
— |
Unpaid portion for common stock offering costs
and financing cost |
|
|
|
|
153 |
|
— |
Unpaid portion of financing
costs |
|
|
|
|
40 |
|
— |
Liquidity, Debt and Capital
Structure
Pursuant to our loan agreements, as of September
30, 2022, we were required to maintain a minimum liquidity of $2.25
million. Total cash and cash equivalents, including the minimum
liquidity amount and the retention account of $0.35 million for one
of our loans, aggregated $6.85 million as of September 30,
2022.
Total funded debt (in thousands of U.S.
dollars), net of deferred financing costs:
|
|
|
|
|
|
December 31, |
|
September 30, |
|
|
|
|
|
|
2021 |
|
2022 (unaudited) |
Funded debt, net of deferred financing costs |
|
|
|
|
$ |
76,575 |
$ |
66,331 |
Promissory Note - related party |
|
|
|
|
|
6,000 |
|
6,000 |
Total funded debt |
|
|
|
|
$ |
82,575 |
$ |
72,331 |
Our weighted average interest rates on our total
funded debt for the three and nine month periods ended September
30, 2022 were 5.9% and 4.8%, respectively.
Following the Company’s Annual Shareholder
Meeting of May 11, 2022, the board of directors of the Company
approved the implementation of a reverse-split of our Common Shares
at the ratio of one share for four existing Common Shares,
effective May 13, 2022 (the “Reverse Stock Split”). After the
Reverse Stock Split, we had 10,613,424 Common Shares (the “Common
Shares”) outstanding and trading continued on the Nasdaq Capital
Markets under its existing symbol, “PXS”. The Reverse Stock Split
was undertaken with the objective of meeting the minimum $1.00 per
share requirement for maintaining the listing of the Common Shares
on the Nasdaq Capital Markets. Furthermore, following the Reverse
Stock Split, (a) the Conversion Price, as defined in the
Certification of Designation of the Company’s 7.75% Series A
Cumulative Convertible Preferred Shares (NASDAQ Cap Mkts: PXSAP),
was adjusted from $1.40 to $5.60 and (b) the Exercise Price, as
defined in the Company’s Warrants to purchase Common Shares (NASDAQ
Cap Mkts: PXSAW), was adjusted from $1.40 to $5.60. All the share
and per share information for all periods presented has been
adjusted to reflect the one for four Reverse Stock Split.
On September 30, 2022, we had a total of
10,613,424 Common Shares issued and outstanding of which Mr.
Valentis beneficially owned 54.0%.
Non-GAAP Measures and Definitions
Earnings before interest, taxes, depreciation
and amortization (“EBITDA”) represents the sum of net income /
(loss), interest and finance costs, depreciation and amortization
and, if any, income taxes during a period. Adjusted EBITDA
represents EBITDA before certain non-operating or non-recurring
charges, such as vessel impairment charges, gain or loss from debt
extinguishment, gain or loss on sale of vessel and gain or loss
from financial derivative instruments. EBITDA and Adjusted EBITDA
are not recognized measurements under U.S. GAAP.
EBITDA and Adjusted EBITDA are presented in this
press release as we believe that they provide investors with means
of evaluating and understanding how our management evaluates
operating performance. These non-GAAP measures have limitations as
analytical tools, and should not be considered in isolation from,
as a substitute for, or superior to financial measures prepared in
accordance with U.S. GAAP. EBITDA and Adjusted EBITDA do not
reflect:
- our cash expenditures, or future requirements for capital
expenditures or contractual commitments;
- changes in, or cash requirements for, our working capital
needs; and
- cash requirements necessary to service interest and
principal payments on our funded debt.
In addition, these non-GAAP measures do not have
standardized meanings and are therefore unlikely to be comparable
to similar measures presented by other companies. The following
table reconciles net income, as reflected in the Unaudited Interim
Consolidated Statements of Comprehensive Income/(Loss) to EBITDA
and Adjusted EBITDA:
|
|
Three months ended September
30, |
|
Nine months ended
September 30, |
(Amounts
in thousands of U.S. dollars) |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
Reconciliation of Net loss to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) |
$ |
(3,478) |
$ |
5,328 |
$ |
(6,923) |
$ |
6,686 |
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,334 |
|
1,538 |
|
3,528 |
|
4,562 |
|
|
|
|
|
|
|
|
|
Amortization of special survey costs |
|
103 |
|
91 |
|
306 |
|
266 |
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
735 |
|
1,193 |
|
2,485 |
|
3,022 |
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
(1,306) |
$ |
8,150 |
$ |
(604) |
$ |
14,536 |
|
|
|
|
|
|
|
|
|
Loss from debt extinguishment |
|
— |
|
— |
|
458 |
|
34 |
|
|
|
|
|
|
|
|
|
(Gain)/loss from financial derivative
instrument |
18 |
|
(191) |
|
18 |
|
(511) |
|
|
|
|
|
|
|
|
|
Loss from the sale of vessels, net |
|
— |
|
— |
|
— |
|
466 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(1,288) |
$ |
7,959 |
$ |
(128) |
$ |
14,525 |
Daily TCE is a shipping industry performance
measure of the average daily revenue performance of a vessel on a
per voyage basis. Daily TCE is not calculated in accordance with
U.S. GAAP. We utilize daily TCE because we believe it is a
meaningful measure to compare period-to-period changes in our
performance despite changes in the mix of charter types (i.e. spot
charters, time charters and bareboat charters) under which our
vessels may be employed between the periods. Our management also
utilizes daily TCE to assist them in making decisions regarding the
employment of the vessels. We calculate daily TCE by dividing
Revenues, net after deducting Voyage related costs and commissions,
by Operating days for the relevant period. Voyage related costs and
commissions primarily consist of brokerage commissions, port, canal
and fuel costs that are unique to a particular voyage, which would
otherwise be paid by the charterer under a time charter
contract.
Vessel operating expenses (“Opex”) per day are
our vessel operating expenses for a vessel, which primarily consist
of crew wages and related costs, insurance, lube oils,
communications, spares and consumables, tonnage taxes as well as
repairs and maintenance, divided by the Ownership days in the
applicable
period.
We calculate fleet utilization by dividing the number of Operating
days during a period by the number of Available days during the
same period. We use fleet utilization to measure our efficiency in
finding suitable employment for our vessels and minimizing the
amount of days that our vessels are off-hire for reasons other than
scheduled repairs or repairs under guarantee, vessel upgrades,
special surveys and intermediate dry-dockings or vessel
positioning. Ownership days are the total number of days in a
period during which we owned each of the vessels in our fleet.
Available days are the number of ownership days in a period, less
the aggregate number of days that our vessels were off-hire due to
scheduled repairs or repairs under guarantee, vessel upgrades or
special surveys and intermediate dry-dockings and the aggregate
number of days that we spent positioning our vessels during the
respective period for such repairs, upgrades and surveys. Operating
days are the number of available days in a period, less the
aggregate number of days that our vessels were off-hire or out of
service due to any reason, including technical breakdowns and
unforeseen circumstances.
EBITDA, Adjusted EBITDA and daily TCE are not
recognized measures under U.S. GAAP and should not be regarded as
substitutes for Revenues, net and Net income. Our presentation of
EBITDA, Adjusted EBITDA and daily TCE does not imply, and should
not be construed as an inference, that our future results will be
unaffected by unusual or non-recurring items and should not be
considered in isolation or as a substitute for a measure of
performance prepared in accordance with U.S. GAAP.
Recent Daily Fleet Data:
(Amounts
in U.S. dollars per day) |
|
Three months endedSeptember
30, |
|
Nine months ended
September 30, |
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
Eco-Efficient MR2: (2022: 4
vessels) |
|
|
|
|
|
|
|
|
(2021:
3 vessels) |
Daily TCE : |
6,982 |
|
27,050 |
|
10,892 |
|
20,539 |
|
Opex per day: |
7,869 |
|
6,890 |
|
7,086 |
|
6,624 |
|
Utilization % : |
90.8% |
|
91.3% |
|
95.5% |
|
86.8% |
Eco-Modified MR2: (1
vessel) |
|
|
|
|
|
|
|
|
|
Daily TCE : |
8,372 |
|
37,958 |
|
10,353 |
|
33,372 |
|
Opex per day: |
7,017 |
|
6,294 |
|
6,762 |
|
7,408 |
|
Utilization % : |
84.4% |
|
82.6% |
|
94.9% |
|
84.6% |
Fleet:
(2022: 5 vessels) * |
|
|
|
|
|
|
|
|
(2021:
4 vessels) * |
Daily TCE : |
7,326 |
|
29,062 |
|
10,729 |
|
23,079 |
|
Opex per day: |
7,647 |
|
6,771 |
|
6,987 |
|
6,781 |
|
Utilization % : |
89.2% |
|
89.6% |
|
95.3% |
|
86.4% |
As of September 30, 2022 our fleet consisted of
four eco-efficient MR2 tankers, “Pyxis Lamda”, “Pyxis Theta”,
“Pyxis Karteria” and “Pyxis Epsilon”, and one eco-modified MR2,
“Pyxis Malou”. During 2021 and 2022, the vessels in our fleet were
employed under time and spot charters.
* a) On December 20, 2021, we took
delivery from a related party the “Pyxis Lamda”, a 50,145 dwt
medium range product tanker built in 2017 at SPP Shipbuilding in
South Korea. After her first special survey,
the “Pyxis Lamda” launched commercial employment in
early January, 2022. For 2021, the vessel contributed nil Available
days, and, consequently, voyage and related costs of $10 have been
excluded from the above data.
b) “Pyxis Karteria” was acquired on July
15, 2021 and commenced commercial activities at that time.
c) Our two small tankers “Northsea Alpha” and
“Northsea Beta” were sold on January 28, and March 1, 2022,
respectively. Both vessels had been under spot employment for
approximately 7 and 36 days, respectively, in 2022 as of the
delivery date to their buyer. The small tankers have been excluded
in the table calculations for the nine months ended September30,
2022 and the comparative period.
d) In February, 2022, the Pyxis Epsilon
experienced a brief grounding at port which resulted in minor
damages to the vessel. The vessel was off-hire for 43 days
including shipyard repairs and returned to commercial employment at
the end of March, 2022.
Conference Call and Webcast
Today, Monday, November 14, 2022, at 4:30 p.m.
Eastern Time, the Company’s management will host a conference call
to discuss the results.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: +1
877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and
Standard International Dial In). Please quote "Pyxis Tankers” to
the operator and/or conference ID 13734223. Click here for
additional International Toll-Free access numbers.
Alternatively, participants can register for the
call using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option.
A webcast of the conference call will be
available through our website (http://www.pyxistankers.com) under
our Events Presentations page. A telephonic replay of the
conference and accompanying slides will be available following the
completion of the call and will remain available until Monday,
November 21, 2022.
Webcast participants of the live conference call
should register on the website approximately 10 minutes prior to
the start of the webcast and can also access it through the
following link:
https://events.q4inc.com/attendee/124064640
About Pyxis Tankers Inc.
We own a modern fleet of five tankers engaged in
seaborne transportation of refined petroleum products and other
bulk liquids. We are focused on prudently growing our fleet of
medium range product tankers, which provide operational flexibility
and enhanced earnings potential due to their "eco" features and
modifications. We are positioned to opportunistically expand and
maximize our fleet due to competitive cost structure, strong
customer relationships and an experienced management team whose
interests are aligned with those of its shareholders. For more
information, visit: http://www.pyxistankers.com. The information
discussed contained in, or that can be accessed through, Pyxis
Tankers Inc.’s website, including the conference call and Webcast
information, is not incorporated into, and does not constitute part
of this report.
Pyxis Tankers Fleet (as of November 10,
2022)
Vessel Name |
Shipyard |
Vessel type |
Carrying Capacity (dwt) |
Year Built |
Type of charter |
Charter(1) Rate (per day) |
Anticipated Earliest Redelivery Date |
|
|
|
|
|
|
|
|
|
|
|
|
Pyxis Lamda (2) |
SPP / S. Korea |
MR |
50,145 |
2017 |
Time |
$ 40,000 |
Apr
2023 |
|
Pyxis Epsilon (3) |
SPP / S. Korea |
MR |
50,295 |
2015 |
Time |
$ 30,000 |
Sep
2023 |
|
Pyxis Theta |
SPP / S. Korea |
MR |
51,795 |
2013 |
Spot |
n/a |
n/a |
|
Pyxis Karteria (4) |
Hyundai / S. Korea |
MR |
46,652 |
2013 |
Time |
$ 30,000 |
Jan
2023 |
|
Pyxis Malou |
SPP / S. Korea |
MR |
50,667 |
2009 |
Spot |
n/a |
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
249,554 |
|
|
|
|
|
- Charter rates are gross in U.S. $ and do not reflect any
commissions payable.
- “Pyxis Lamda” is fixed on a time charter for 6 months, +/- 15
days at $40,000 per day.
- “Pyxis Epsilon” is fixed on a time charter for 12 months, +/-
30 days at $30,000 per day.
- “Pyxis Karteria” is fixed on a time charter for min 4, max 6
months at $30,000 per day.
Forward Looking Statements
This press release contains forward-looking
statements and forward-looking information within the meaning of
the Private Securities Litigation Reform Act of 1995 applicable
securities laws. The words “expected'', “estimated”, “scheduled”,
“could”, “should”, “anticipated”, “long-term”, “opportunities”,
“potential”, “continue”, “likely”, “may”, “will”, “positioned”,
“possible”, “believe”, “expand” and variations of these terms and
similar expressions, or the negative of these terms or similar
expressions, are intended to identify forward-looking information
or statements. But the absence of such words does not mean that a
statement is not forward-looking. All statements that are not
statements of either historical or current facts, including among
other things, our expected financial performance, expectations or
objectives regarding future and market charter rate expectations
and, in particular, the effects of COVID-19 or any variant thereof,
or the war in the Ukraine, on our financial condition and
operations and the product tanker industry in general, are
forward-looking statements. Forward-looking information is based on
the opinions, expectations and estimates of management of Pyxis
Tankers Inc. (“we”, “our” or “Pyxis”) at the date the information
is made, and is based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking information. Although we believe
that the expectations and assumptions on which such forward-looking
statements and information are based are reasonable, those are not
guarantees of our future performance and you should not place undue
reliance on the forward-looking statements and information because
we cannot give any assurance that they will prove to be correct.
Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties and actual results and future events could
differ materially from those anticipated or implied in such
information. Factors that might cause or contribute to such
discrepancy include, but are not limited to, the risk factors
described in our Annual Report on Form 20-F for the year ended
December 31, 2021 and our other filings with the Securities and
Exchange Commission. The forward-looking statements and information
contained in this presentation are made as of the date hereof. We
do not undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, except in accordance
with U.S. federal securities laws and other applicable securities
laws.
Company
Pyxis Tankers Inc.59 K. Karamanli StreetMaroussi 15125
Greeceinfo@pyxistankers.com
Visit our website at www.pyxistankers.com
Company Contact
Henry WilliamsChief Financial OfficerTel: +30 (210) 638 0200 /
+1 (516) 455-0106Email: hwilliams@pyxistankers.com
Source: Pyxis Tankers Inc.
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