Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months ended March 31, 2021.
Highlights of the First Quarter Ended
March 31, 2021:
- Revenues, net: $7.0 million for the three months ended
March 31, 2021, as compared to $2.7 million for the three months
ended March 31, 2020, or a 159% period to period
increase;
- Net income/loss: Net income of $1.1 million for the
three months ended March 31, 2021, as compared to net loss of $0.3
million for the three months ended March 31, 2020, or a 467% period
to period increase;
- Earnings/Loss per common
share(1): $0.02 earnings per
share for the three months ended March 31, 2021, as compared to
loss per share of $0.68 for the three months ended March 31, 2020,
or a 103% period to period increase;
- EBITDA(2): $2.6
million for the three months ended March 31, 2021, as compared to
$0.9 million for the three months ended March 31, 2020, or a 189%
period to period increase;
- Cash and restricted cash of $64.2 million as of March
31, 2021, as compared to $9.4 million as of December 31, 2020, or a
583% period to period increase;
- Since the beginning of this year, Castor announced the
acquisition of 20 vessels across the dry bulk and tanker segments,
consisting of 1 Capesize, 7 Kamsarmax and 4 Panamax dry bulk
carriers as well as 1 Aframax, 5 Aframax/LR2 and 2 MR1 tankers. As
of June 2, 2021, we have taken successful delivery of 14 vessels
and expect 6 remaining acquisitions to conclude by the fourth
quarter of this year, subject to customary closing conditions. On a
fully delivered basis, Castor will own a diversified fleet of 26
vessels with an aggregate capacity of 2.2 million dwt, having more
than quadrupled its fleet size since December 31, 2020;
and
- Effected a one-for-ten (1-for-10) reverse stock split
of the Company's common shares on May 28,
2021(1).
(1) All share and per share amounts
disclosed throughout this press release and in the financial
information presented in Appendix B of this press release have been
retroactively updated to reflect the 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 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.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer
of Castor commented:
“The first five months of 2021 was a
transformational period for our Company, as we were able to raise
$252.5 million of equity and $33.3 million of debt and grow our
fleet from 6 vessels, at the end of 2020, to 26 vessels on a fully
delivered basis and once we complete all of our announced
acquisitions.
On a fully delivered basis, our fleet will
consist of 18 dry bulk carriers and 8 tankers, allowing us to
benefit from the ongoing strong demand for dry bulk transportation
services as evidenced by the recent charter fixtures of a number of
our dry cargo vessels, as well as from a potential future recovery
in the tanker market.”
Earnings Commentary:
First Quarter ended March 31, 2021 and
2020 Results
Time charter revenues, net of charterers’
commissions, for the three months ended March 31, 2021, increased
to $7.0 million from $2.7 million in the same period of 2020, or a
159% increase. This increase reflects (i) the additions to our
fleet in the third and fourth quarters of 2020 and in the first
quarter of 2021 of the M/V Rainbow, M/V Magic Horizon, M/V Magic
Nova, M/V Magic Venus, M/V Magic Orion, M/V Magic Argo, M/T Wonder
Polaris, and the M/T Wonder Sirius. These vessel acquisitions
correspondingly increased our Available days (defined below) from
214 in the three months ended March 31, 2020 to 596 in the three
months ended March 31, 2021, thus generating incremental revenues
in the latter period. During the latter part of the first quarter
of 2021 and as of the date of this earnings release, we have taken
advantage of the strong dry bulk market and fixed 9 of our vessels
at competitive charter rates ranging from approximately $18,500
gross per day to approximately $27,500 gross per day, including one
of our vessels fixed to a market linked index, versus an average
time charter equivalent (“TCE”) rate of $12,416 in the first
quarter of 2021. We expect our operating cash flows to benefit from
these improved charter rates in the upcoming quarter.
The increase in operating expenses by $1.9
million, from $1.4 million in the first quarter of 2020 to $3.3
million in the first quarter of 2021, as well as the increase in
depreciation costs by $0.6 million, from $0.3 million in the first
quarter of 2020 to $0.9 million in the first quarter of 2021,
reflect the increase in our Ownership days (defined below) from 273
in 2020 to 628 in 2021. Daily vessel operating expenses for the
period increased by $177, or 3.5%, to $5,265 from $5,088 in the
respective period of 2020. Contributing to this increase were
principally the elevated crew costs for the majority of our fleet
resulting from difficulties and delays in effecting crew changes on
our vessels due to travel restrictions imposed by governments amid
the ongoing COVID-19 pandemic and the incurrence of certain
customary costs on our newly delivered vessels.
Management fees in the first quarter of 2021
amounted to $774,350, whereas, in the same period of 2020
management fees totaled $136,500. This increase in management fees
is primarily due to the sizeable increase of our fleet, resulting
in a substantial increase in our incremental Ownership days for
which our managers charge us with a daily management fee, following
the acquisitions discussed above. Effective September 1, 2020, the
daily management fees for the technical management of our fleet by
Pavimar S.A., was increased from $500 to $600 per vessel and the
daily management fees for the commercial and administrative
management of our fleet by Castor Ships S.A. was set to $250 per
vessel.
General and administrative expenses in the first
quarter of 2021 amounted to $739,231, whereas, in the same period
of 2020 general and administrative expenses totaled $128,383. This
increase stemmed from the increase in legal and other corporate
fees resulting primarily from the growth of our company, and the
$0.3 million quarterly flat fee we pay our commercial and
administration manager, Castor Ships S.A., with effect from
September 1, 2020.
During the first quarter of 2021, we incurred
net interest costs and finance costs mostly in connection with our
outstanding debt amounting to $0.4 million and, as at the end of
the first quarter of 2021, we had outstanding indebtedness of $33.2
million. During the same period in 2020, we incurred net interest
costs and finance costs amounting to $0.8 million which also
included the non-cash recurring amortization expenses and the
non-cash accelerated amortization expenses related to deferred
financing costs and to a beneficial conversion feature recognized
in connection with our then outstanding $5.0 million senior
unsecured convertible debentures, aggregating to $0.5 million. As
at December 31, 2020, we had outstanding indebtedness of $18.5
million.
EBITDA for the three months ended March 31, 2021
was $2.6 million compared to $0.9 million in the same period of
2020, with the 189% increase mainly attributable to the above
discussed increase in operating revenues and decrease in net
interest and finance costs versus the compared period. For a
reconciliation of Net Income/(Loss) to EBITDA please see Appendix
B.
Recent Business and
Financial Developments
Commentary:
Nasdaq Listing Standards Compliance
Update
On December 30, 2020, we announced that we
received a notification letter from the Nasdaq Stock Market
("Nasdaq") granting us an additional 180-day extension, or until
June 28, 2021, to regain compliance with Nasdaq’s minimum bid price
requirement. On May 28, 2021, we effected a 1 for 10 reverse stock
split on our common stock for the purpose of regaining compliance
with the Nasdaq minimum bid price requirement.
Equity Offerings Update
On April 5, 2021, we entered into agreements
with certain unaffiliated institutional investors pursuant to which
we offered 19,230,770 common shares and warrants to purchase
19,230,770 common shares (the “April 7 Warrants”) in a registered
direct offering which closed on April 7, 2021 (the “April 7
Offering”). The aggregate purchase price for each common share and
April 7 Warrant was $6.5, on a post reverse stock split basis. In
connection with the April 7 Offering, we received gross proceeds of
approximately $125.0 million. As of the date of this press release,
all April 7 Warrants remained unexercised.
Financing Transactions
Update
On April 27, 2021, we, through two of our
ship-owning subsidiaries, entered into a $18.0 million senior
secured term loan facility with a European financial institution,
or the $18.0 Million Term Loan Facility, which is secured by the
M/T Wonder Polaris and the M/T Wonder Sirius. The $18.0 Million
Term Loan Facility has a tenor of four years from the drawdown date
and bears interest at a margin plus LIBOR. The loan was drawn down
in full on May 7, 2021. We intend to use the net proceeds from the
$18.0 Million Term Loan Facility for general corporate purposes
including funding our growth capital expenditures.
Vessel Acquisitions Update
Since the beginning of this year and up to the
date of this earnings release, we have agreed and announced the
acquisitions of 20 dry bulk and tanker vessels from unaffiliated
parties. As of the date of this earnings release, we have completed
14 of our 20 previously announced vessel acquisitions.
Details and delivery information of our
completed as well as in progress vessel acquisitions within 2021
are as follows:
Completed acquisitions: |
Dry bulk carriers |
|
|
|
|
|
|
Vessel Name |
Vessel Type |
DWT |
Year Built |
Country of Construction |
Purchase Price (in million) |
Delivery Date in 2021 |
Magic Orion |
Capesize |
180,200 |
2006 |
Japan |
$17.50 |
17 March |
Magic Venus |
Kamsarmax |
83,416 |
2010 |
Japan |
$15.85 |
2 March |
Magic Argo |
Kamsarmax |
82,338 |
2009 |
Japan |
$14.50 |
18 March |
Magic Twilight |
Kamsarmax |
80,283 |
2010 |
Korea |
$14.80 |
9 April |
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
$16.85 |
13 April |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
$14.50 |
12 May |
Magic Nebula |
Kamsarmax |
80,281 |
2010 |
Korea |
$15.45 |
20 May |
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
$23.50 |
23 May |
Tankers |
|
|
|
|
|
|
Wonder Polaris |
Aframax/LR2 |
115,341 |
2005 |
Korea |
$13.60 |
11 March |
Wonder Sirius |
Aframax/LR2 |
115,341 |
2005 |
Korea |
$13.60 |
22 March |
Wonder Vega |
Aframax |
106,062 |
2005 |
Korea |
$14.80 |
21 May |
Wonder Avior |
Aframax/LR2 |
106,162 |
2004 |
Korea |
$12.00 |
27 May |
Wonder Mimosa |
MR1 Tanker |
37,620 |
2006 |
Korea |
$7.25 |
31 May |
Wonder Arcturus |
Aframax/LR2 |
106,149 |
2002 |
Korea |
$10.00 |
31 May |
Vessels we have agreed to
acquire:
Dry bulk carriers |
|
|
|
|
Vessel Type |
DWT |
Year Built |
Country of Construction |
Purchase Price (in million) |
Panamax |
74,940 |
2011 |
Japan |
$18.48 |
Kamsarmax |
82,158 |
2013 |
Japan |
$21.00 |
Panamax |
74,940 |
2013 |
Japan |
$19.06 |
Panamax |
76,822 |
2014 |
Korea |
$21.00 |
Tankers |
|
|
|
|
MR1 Tanker |
37,562 |
2006 |
Korea |
$8.00 |
Aframax/LR2 |
106,290 |
2004 |
Korea |
$12.00 |
Update on common shares issued and
outstanding
As of June 2, 2021, we had issued and
outstanding 89,955,848 common shares, reflecting the 1 for 10
reverse stock split.
Liquidity / Financing / Cash Flow
Commentary:
As of March 31, 2021, total cash amounted to
$64.2 million, which included $1.9 million of restricted cash
required under our secured term loan facilities. The significant
improvement on our consolidated cash position as of March 31, 2021,
by $54.8 million, or 583%, in relation to our cash position of
December 31, 2020, was mainly the result of (i) the two registered
direct offerings of an aggregate 23.18 million common shares with a
concurrent private placement of an equivalent aggregate number of
warrants on January 5 and January 12, 2021, which resulted in
aggregate net cash proceeds to us of $84.8 million, (ii) subsequent
exercises of 11.25 million warrants pursuant to the June and July
2020 equity offerings, that resulted in the issuance of an equal
number of common shares and proceeds of approximately $39.4 million
and (iii) our entry into a $15.3 million term loan facility with a
reputable European financial institution in January 2021 (the “15.3
Million Term Loan Facility”). During the first quarter of 2021, we
used $84.2 million of the above discussed net proceeds from our
first quarter of 2021 equity and debt financings to fund our growth
capital expenditures.
Between April 1, 2021 and June 2, 2021, there
have been no subsequent warrant exercises under our currently
effective warrant schemes.
As of March 31, 2021, pursuant to the entering
within the first quarter of 2021 into the $15.3 Million Term Loan
Facility, our total debt (including $5.0 million of related party
debt), gross of unamortized deferred loan fees, was $33.2 million
of which $9.1 million was repayable within one year, as compared to
$18.5 million of debt as of December 31, 2020.
During the three months ended March 31, 2021,
net cash provided from operating activities was $0.4 million as
compared to $0.0 of cash provided from operating activities in the
corresponding period of 2020. Net cash from operating activities in
the three-month period ended March 31, 2021, consisted of net
income after non-cash items of $2.3 million and working capital
outflows of $1.8 million, whereas, in the corresponding quarter of
2020, net cash from operating activities consisted on net income
after non-cash items of $0.5 million and working capital outflows
of $0.5 million. The increase in net cash from operating activities
in the first quarter of 2021 versus the same period of 2020 is
therefore mainly the aggregate result of our improved operational
performance partly offset by period working capital cash outflows.
As of March 31, 2021, we reported a working capital surplus of
$55.6 million (December 31, 2020: $2.7 million).
Fleet Employment Update (as of June 2,
2021)
Vessel Name |
Type/ Country of
Construction |
DWT |
Year Built |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date (Earliest/ Latest) |
Magic P |
Panamax dry bulk carrier / Japan |
76,453 |
2004 |
Time charter period |
$12,750 |
August 2021 |
November 2021 |
Magic Sun |
Panamax dry bulk carrier / Korea |
75,311 |
2001 |
Time charter period |
$10,200 |
August 2021 |
October 2021 |
Magic Moon |
Panamax dry bulk carrier / Japan |
76,602 |
2005 |
Time charter period |
$10,500 |
July 2021 |
September 2021 |
Magic Rainbow |
Panamax dry bulk carrier / China |
73,593 |
2007 |
N/A |
N/A |
At scheduled Dry-dock |
Magic Horizon |
Panamax dry bulk carrier / Japan |
76,619 |
2010 |
Time charter period |
$11,000 |
August 2021 |
December 2021 |
Magic Nova |
Panamax dry bulk carrier / Japan |
78,833 |
2010 |
Time charter period |
$10,400 |
April 2021 |
August 2021 |
Magic Venus |
Kamsarmax dry bulk carrier / Japan |
83,416 |
2010 |
Time charter period |
$18,500 |
August 2021 |
October 2021 |
Magic Orion |
Capesize dry bulk carrier / Japan |
180,200 |
2006 |
Time charter trip |
$27,500 |
June 2021 |
June 2021 |
Magic Argo |
Kamsarmax dry bulk carrier / Japan |
82,338 |
2009 |
Time charter trip |
$25,100 |
June 2021 |
June 2021 |
Magic Twilight |
Kamsarmax dry bulk carrier / Korea |
80,283 |
2010 |
Time charter period |
$21,000 |
November 2021 |
January 2022 |
Magic Thunder |
Kamsarmax dry bulk carrier / Japan |
83,375 |
2011 |
Time charter trip |
$18,900 |
June 2021 |
July 2021 |
Magic Vela |
Panamax dry bulk carrier / China |
75,003 |
2011 |
Time charter trip |
$25,500 |
August 2021 |
September 2021 |
Magic Nebula |
Kamsarmax dry bulk carrier / Korea |
80,281 |
2010 |
Time charter trip |
$25,500 + $550,000 Ballast Bonus (1) |
August 2021 |
August 2021 |
Magic Starlight |
Kamsarmax dry bulk carrier / China |
81,048 |
2015 |
Time charter period |
114% of BPI Index |
September 2022 |
March 2023 |
Wonder Polaris |
LR2 Aframax tanker / Korea |
115,341 |
2005 |
Time charter period |
$15,000 + profit sharing |
February 2022 |
February 2023 |
Wonder Sirius |
LR2 Aframax tanker / Korea |
115,341 |
2005 |
Time charter period |
$15,000 + profit sharing |
February 2022 |
February 2023 |
Wonder Vega |
Aframax tanker / Korea |
106,062 |
2005 |
Tanker Pool (2) |
N/A |
N/A |
N/A |
Wonder Avior |
LR2 Aframax tanker / Korea |
106,162 |
2004 |
Unfixed |
N/A |
N/A |
N/A |
Wonder Mimosa |
MR1 Tanker / Korea |
37,620 |
2006 |
N/A |
N/A |
En route for scheduled Dry-dock |
Wonder Arcturus |
LR2 Aframax tanker / Korea |
106,149 |
2002 |
Voyage |
$5,000(3) |
15 June 2021 (4) |
N/A |
(1) The vessel is currently en route for delivery to charterers
on or around June 15, 2021. (2) The vessel is currently
participating in an unaffiliated tanker pool specializing in the
employment of Aframax tanker vessels. (3) For vessels that are
employed on the voyage market, the daily gross charter rate is
considered as the TCE on the basis of the expected completion date.
(4) Estimated completion date of the voyage.
Financial Results Overview:
|
|
Three Months Ended |
(expressed in U.S. dollars) |
|
March 31, 2021 (unaudited) |
|
March 31, 2020 (unaudited)) |
Time charter
revenues, net |
$ |
6,972,853 |
$ |
2,725,277 |
Operating
income |
$ |
1,491,439 |
$ |
582,141 |
Net income/
(loss) |
$ |
1,127,060 |
$ |
(259,868) |
EBITDA(1) |
$ |
2,570,724 |
$ |
905,274 |
Earnings/(Loss) per common share |
$ |
0.02 |
$ |
(0.68) |
(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 statistical data of our fleet for each of the three
months ended March 31, 2021 and 2020 that we believe are useful in
better analysing trends in our results of operations:
|
|
Three Months Ended March 31, |
(expressed in U.S. dollars except for operational
data) |
|
2021 |
|
|
2020 |
|
Ownership
days (1) |
|
628 |
|
|
273 |
|
Available
days (2) |
|
596 |
|
|
214 |
|
Daily TCE
rate (3) |
$ |
12,416 |
|
$ |
12,008 |
|
Fleet
Utilization (4) |
|
95% |
|
|
78% |
|
Daily vessel
operating expenses (5) |
$ |
5,265 |
|
$ |
5,088 |
|
(1) Ownership days are the total number of calendar days in a
period during which we owned our vessels. (2) Available days
are the Ownership days after subtracting off-hire days associated
with major scheduled repairs, vessel upgrades, dry dockings or
special or intermediate surveys and major unscheduled repair and
off-hire days. Available days include ballast voyage days for which
compensation has been received, if any. (3) 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.
(4) Fleet utilization is calculated by dividing the Available
days (which include ballast voyage days for which compensation has
been received) during a period by the number of Ownership days
during that period. (5) Daily vessel operating expenses are
calculated by dividing vessel operating expenses for the relevant
period by the Ownership days for such period.
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 March 31, |
|
|
2021 |
|
|
2020 |
|
REVENUES |
|
|
|
|
Time charter
revenues, net |
$ |
6,972,853 |
|
$ |
2,725,277 |
|
EXPENSES |
|
|
|
|
Voyage
income/(expenses) -including commissions to related parties |
|
426,972 |
|
|
(155,507) |
|
Vessel
operating expenses |
|
(3,306,257) |
|
|
(1,389,070) |
|
General and
administrative expenses (including related party fees) |
|
(739,231) |
|
|
(128,383) |
|
Management
fees -related parties |
|
(774,350) |
|
|
(136,500) |
|
Depreciation
and amortization |
|
(1,088,548) |
|
|
(333,676) |
|
Operating income |
$ |
1,491,439 |
|
$ |
582,141 |
|
Interest and
finance costs, net (including related party interest costs) |
|
(355,116) |
|
|
(831,466) |
|
Other
expenses, net |
|
(9,263) |
|
|
(10,543) |
|
Net income/(loss) |
$ |
1,127,060 |
|
$ |
(259,868) |
|
Earnings/(loss) per common share (basic)
(1) |
$ |
0.02 |
|
$ |
(0.68) |
|
|
|
|
|
|
Weighted
average number of common shares outstanding, basic (1): |
|
57,662,495 |
|
|
383,103 |
|
|
|
|
|
|
|
|
CASTOR MARITIME INC.
Consolidated Condensed Balance Sheets and
Cash Flow Data (unaudited) (Expressed in U.S.
Dollars—except for number of share data)
|
|
March 31, 2021
|
|
|
December 31,
2020 |
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
62,335,854 |
|
$ |
8,926,903 |
Due from
related party |
|
2,894,378 |
|
|
1,559,132 |
Other
current assets |
|
4,690,184 |
|
|
3,078,119 |
Total current assets |
|
69,920,416 |
|
|
13,564,154 |
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
Vessels,
net |
|
132,989,790 |
|
|
58,045,628 |
Advances for
vessel acquisitions |
|
8,751,773 |
|
|
— |
Other
non-currents assets |
|
3,929,542 |
|
|
2,761,573 |
Total non-current assets, net |
|
145,671,105 |
|
|
60,807,201 |
Total assets |
|
215,591,521 |
|
|
74,371,355 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current
portion of long-term debt, net – including related party |
|
8,878,624 |
|
|
7,102,037 |
Due to
related parties |
|
156,994 |
|
|
1,941 |
Trade
payables |
|
2,564,609 |
|
|
2,078,695 |
Accrued
liabilities |
|
2,092,322 |
|
|
1,613,109 |
Deferred
Revenue, net |
|
641,697 |
|
|
108,125 |
Total current liabilities |
|
14,334,246 |
|
|
10,903,907 |
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Long-term
debt, net |
|
23,733,839 |
|
|
11,083,829 |
Total non-current liabilities |
|
23,733,839 |
|
|
11,083,829 |
Total Liabilities |
|
38,068,085 |
|
|
21,987,736 |
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Common
shares, $0.001 par value; 1,950,000,000 shares authorized;
70,725,079 and 13,121,238 shares, issued and outstanding as at
March 31, 2021 and December 31, 2020, respectively (1) |
|
70,725 |
|
|
13,121 |
Series A
Preferred Shares- 480,000 shares issued and outstanding as at March
31, 2021 and December 31, 2020 |
|
480 |
|
|
480 |
Series B
Preferred Shares- 12,000 shares issued and outstanding as at March
31, 2021 and December 31, 2020 |
|
12 |
|
|
12 |
Additional
paid-in capital |
|
177,641,894 |
|
|
53,686,741 |
Accumulated
Deficit |
|
(189,675) |
|
|
(1,316,735) |
Total shareholders’ equity |
|
177,523,436 |
|
|
52,383,619 |
Total liabilities and shareholders’ equity |
$ |
215,591,521 |
|
$ |
74,371,355 |
(1) All numbers of share and earnings per
share amounts in these financial statements have been retroactively
adjusted to reflect the reverse stock split effected on May 28,
2021.
CASH
FLOW DATA |
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
Net cash
provided by operating activities |
$ |
438,557 |
|
$ |
37,197 |
Net cash
used in investing activities |
|
(84,198,693) |
|
|
(347,922) |
Net cash
provided by financing activities |
$ |
138,572,607 |
|
$ |
8,667,487 |
APPENDIX B
Non-GAAP Financial
Information
Daily TCE Rate. TCE rate, is a
measure of the average daily revenue performance of a vessel. The
TCE rate is calculated by dividing total revenues (time charter
and/or voyage charter 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 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, 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 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 charters
trips, period time charters 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 TCE rates may not be comparable to that reported by
other companies. The following table reflects the calculation of
our TCE rates for the periods presented (amounts in U.S. dollars,
except for Available days):
|
|
Three Months Ended March
31, |
(In U.S. dollars, except for Available days) |
|
2021 |
|
2020 |
|
Time charter
revenues, net |
$ |
6,972,853 |
$ |
2,725,277 |
|
Voyage
income / (expenses) -including commissions from related
parties |
|
426,972 |
|
(155,507) |
|
TCE revenues |
$ |
7,399,825 |
$ |
2,569,770 |
|
Available
days |
|
596 |
|
214 |
|
TCE rate |
$ |
12,416 |
$ |
12,008 |
|
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 March 31, |
(In U.S. dollars) |
|
2021 |
|
2020 |
|
|
|
|
|
|
Net
Income/(Loss) |
$ |
1,127,060 |
$ |
(259,868) |
|
Depreciation
and amortization |
|
1,088,548 |
|
333,676 |
|
Interest and
finance costs, net (including amortization of deferred financing
costs and beneficial conversion feature, as applicable) |
|
355,116 |
|
831,466 |
|
EBITDA |
$ |
2,570,724 |
$ |
905,274 |
|
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. We desire to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and 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 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 charterhire
rates and vessel values, the strength of world economies 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, 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, 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 Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital Link Email:
castormaritime@capitallink.com
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