Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three and six months ended June 30, 2021.
Highlights of the Second Quarter Ended
June 30, 2021:
- Revenues, net: $21.8 million for the three months ended
June 30, 2021, as compared to $2.6 million for the three months
ended June 30, 2020;
- Net income/loss: Net income of $6.5 million for the
three months ended June 30, 2021, as compared to net loss of $0.1
million for the three months ended June 30, 2020;
- Earnings/Loss per common
share(1): $0.07 earnings per
share for the three months ended June 30, 2021, as compared to loss
per share of $0.12 for the three months ended June 30,
2020;
- EBITDA(2): $10.0
million for the three months ended June 30, 2021, as compared to
$1.0 million for the three months ended June 30,
2020;
- Cash and restricted cash of $42.7 million as of June
30, 2021, as compared to $9.4 million as of December 31,
2020;
- During the second quarter of 2021 and as of the date of
this press release, we have taken successful delivery of 12 vessels
consisting of 4 Kamsarmax and 2 Panamax dry bulk carriers as well
as 1 Aframax, 3 Aframax / LR2 and 2 MR1 tankers. We expect three
remaining acquisitions to conclude in the third 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;
- On June 14, 2021, we received written notice from the
Nasdaq Stock Market (“Nasdaq”) that the Company has regained
compliance with the Nasdaq's minimum bid price requirement for
continued listing on the Nasdaq Capital Market; and
- In June 2021, we entered into an at-the-market (“ATM”)
sales agreement for the offer and sale from time to time of our
common shares, having an aggregate offering amount of up to $300.0
million.
Earnings Highlights of the Six Months
Ended June 30, 2021:
- Revenues, net: $28.8 million for the six months ended
June 30, 2021, as compared to $5.3 million for the six months ended
June 30, 2020;
- Net income/loss: Net income of $7.6 million for the six
months ended June 30, 2021, as compared to net loss of $0.4 million
for the six months ended June 30, 2020;
- Earnings/Loss per common
share(1): $0.10 earnings per
share for the six months ended June 30, 2021, as compared to loss
per share of $0.50 for the six months ended June 30, 2020;
and
- EBITDA(2): $12.6
million for the six months ended June 30, 2021, as compared to $1.9
million for the six months ended June 30, 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:
“The first six months of 2021 was a
transformational period for our Company, as we were able to raise
$262.5 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.
Strong demand for dry bulk transportation
services has resulted in robust freight rates, with the upward
momentum expected to be sustained by the tight vessel supply and
historically low newbuilding orderbook. Following our timely
acquisitions, Castor is well positioned to take advantage of this
strong market with a dry bulk fleet consisting of 18 vessels, on a
fully delivered basis. At the same time, most of our newly acquired
tanker vessels are in either term or pool employment ensuring a
high utilization for that part of our fleet.”
Earnings Commentary:
Second Quarter ended June 30, 2021 and
2020 Results
Vessel revenues, net of charterers’ commissions,
for the three months ended June 30, 2021, increased to $21.8
million from $2.6 million in the same period of 2020. This increase
was largely driven by the increase in our Ownership days (defined
below) from 273 in the three months ended June 30, 2020 to 1,477 in
the three months ended June 30, 2021, following the acquisition and
delivery to our fleet of 20 vessels since June 30, 2020. The
increase in vessel revenues during the three months ended June 30,
2021 as compared with the same period of 2020 was further
underpinned by a stronger dry bulk shipping market resulting in
higher daily TCE earned on average for our fleet
The increase in operating expenses by $6.8
million, from $1.2 million in the second quarter of 2020 to $8.0
million in the second quarter of 2021, as well as the increase in
vessels’ depreciation costs by $2.5 million, from $0.3 million in
the second quarter of 2020 to $2.8 million in the second quarter of
2021, mainly reflect the increase in our Ownership days following
the expansion of our fleet.
Management fees in the second quarter of 2021
amounted to $1.8 million, whereas, in the same period of 2020
management fees totalled $0.1 million. This increase in management
fees is primarily due to the sizeable increase of our fleet,
resulting in a substantial increase in our 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 fee for the technical management of our fleet by
Pavimar S.A. was increased from $500 to $600 per vessel, and the
daily management fee 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
second quarter of 2021 amounted to $0.7 million, whereas, in the
same period of 2020 general and administrative expenses totalled
$0.1 million. This increase stemmed from incurred legal and other
corporate fees primarily related to the growth of our company and
the $0.3 million quarterly flat fee we pay Castor Ships S.A. with
effect from September 1, 2020.
During the second quarter of 2021, we incurred
net interest costs and finance costs amounting to $0.5 million
compared to $0.8 million during the same period in 2020.
Recent Business and
Financial Developments
Commentary:
Nasdaq Listing Standards Compliance
Update
On June 14, 2021, Nasdaq notified us that as a
result of the closing bid price of the Company’s common stock
having been at $1.00 per share or greater for at least ten
consecutive business days, from May 28, 2021 to June 11, 2021, the
Company has regained compliance with Nasdaq’s minimum bid price
requirement for continued listing on the Nasdaq Capital Market, and
the matter is now closed.
ATM common stock offering
program
On June 14, 2021, we entered into an equity
distribution agreement with Maxim Group LLC acting as a sales
agent, under which we may, from time to time, offer and sell shares
of our common stock through the ATM program having an aggregate
offering price of up to $300.0 million (the “ATM Program”). As of
June 30, 2021, we had raised net proceeds of $9.7 million by
issuing and selling 3,563,407 common shares under the ATM Program.
Between June 30, 2021 and August 4, 2021, no sales of common shares
have taken place. We intend to use the net proceeds from the sale
of our common stock under the ATM Program, for capital
expenditures, working capital, funding for vessel and other asset
or share acquisitions or for other general corporate purposes or a
combination thereof.
Financing Transactions
Update
On July 23, 2021, we, through four of our
ship-owning subsidiaries, entered into a $40.75 million senior
secured term loan facility with a European bank which is secured by
the M/V Magic Thunder, M/V Magic Nebula, M/V Magic
Eclipse and the M/V Magic Twilight. The $40.75 million
term loan facility has a tenor of five years and bears interest at
a margin plus LIBOR. The loan was drawn down in full on July
27, 2021.
Vessel Acquisitions Update
During the second quarter of 2021 and as of the
date of this earnings press release, we have taken delivery of 12
vessels, aggregating to 17 completed vessel acquisitions of the
total 20 vessel acquisitions we made since the beginning of this
year.
Details and delivery information of our
completed as well as in progress vessel acquisitions within the
second quarter of 2021 and as of the date of this press release are
as follows:
Completed acquisitions: |
Vessel Name |
Vessel Type |
DWT |
Year Built |
Country of Construction |
Purchase Price (in million) |
Delivery Date in 2021 |
Dry Bulk Carriers |
|
|
|
|
|
|
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 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
$18.48 |
7 June |
Tankers |
|
|
|
|
|
|
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 |
37,620 |
2006 |
Korea |
$7.25 |
31 May |
Wonder Arcturus |
Aframax/LR2 |
106,149 |
2002 |
Korea |
$10.00 |
31 May |
Wonder Musica |
Aframax/LR2 |
106,209 |
2004 |
Korea |
$12.00 |
15 June |
Wonder Formosa |
MR1 |
37,562 |
2006 |
Korea |
$8.00 |
22 June |
Vessels we have agreed to
acquire:
Vessel Type |
DWT |
Year Built |
Country of Construction |
Purchase Price (in million) |
Dry Bulk Carriers |
|
|
|
|
Kamsarmax |
82,158 |
2013 |
Japan |
$21.00 |
Panamax |
74,940 |
2013 |
Japan |
$19.06 |
Panamax |
76,822 |
2014 |
Korea |
$21.00 |
Update on common shares issued and
outstanding
As of August 4, 2021, we had issued and
outstanding 93,519,255 common shares.
Liquidity / Financing / Cash Flow
Commentary:
Our consolidated cash position as of June 30,
2021 increased by $33.3 million, to $42.7 million, in relation to
our cash position on December 31, 2020. That was mainly the result
of: (i) $7.2 million of positive operating cash flows during the
six months ended June 30, 2021, (ii) $157.0 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) 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 $32.5 million following our entry into two secured
loan facilities with two reputable European banks in January and
April of 2021, (v) $9.8 million of net cash proceeds pursuant to
common stock sales under the ATM Program, as offset by (vi) $1.6 of
scheduled principal repayments on our existing debt agreements.
During the six months ended June 30 2021, we
used $255.1 million of the net proceeds from our first half of 2021
equity and debt financings to fund our growth and other capital
expenditures.
Between July 1, 2021 and August 4, 2021, there
have been no subsequent warrant exercises under our currently
effective warrant schemes.
As of June 30, 2021, our total debt (including
$5.0 million of related party debt maturing in September 2021),
gross of unamortized deferred loan fees, was $50.2 million of which
$12.5 million was repayable within one year, as compared to $18.5
million of debt as of December 31, 2020.
Fleet Employment
Update (as of
August 4,
2021)
During the second quarter of 2021, we operated
on average 16.2 vessels earning a daily average TCE rate of $14,381
as compared to an average 3 vessels earning a daily average TCE
rate of $9,090 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 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 |
Time charter period |
$25,000 |
January 2022 |
March 2022 |
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 |
$39,500 |
September 2021 |
September 2021 |
Magic Argo |
Kamsarmax dry bulk carrier / Japan |
82,338 |
2009 |
Time charter trip |
$33,000 |
September 2021 |
September 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 |
Unfixed |
N/A |
N/A |
N/A |
Magic Vela |
Panamax dry bulk carrier / China |
75,003 |
2011 |
Time charter trip |
$25,500 |
August 2021 |
August 2021 |
Magic Nebula |
Kamsarmax dry bulk carrier / Korea |
80,281 |
2010 |
Time charter trip |
$25,500 + $550,000 Ballast Bonus |
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 |
Magic Eclipse |
Panamax dry bulk carrier / Japan |
74,940 |
2011 |
Time charter trip |
$26,500 |
September 2021 |
September 2021 |
Wonder Polaris |
Aframax/LR2 tanker / Korea |
115,341 |
2005 |
Time charter period |
$15,000 + profit sharing |
February 2022 |
February 2023 |
Wonder Sirius |
Aframax/LR2 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 (1) |
N/A |
N/A |
N/A |
Wonder Avior |
Aframax/LR2 tanker / Korea |
106,162 |
2004 |
Voyage |
$11,280 (2) |
28 August 2021 (3) |
N/A |
Wonder Mimosa |
MR1 tanker / Korea |
37,620 |
2006 |
Tanker Pool (4) |
N/A |
N/A |
N/A |
Wonder Arcturus |
Aframax/LR2 tanker / Korea |
106,149 |
2002 |
Voyage |
$5,500 (2) |
7 August 2021 (3) |
N/A |
Wonder Musica |
Aframax/LR2 tanker / Korea |
106,209 |
2004 |
Voyage |
$5,000 (2) |
9 August 2021 (3) |
N/A |
Wonder Formosa |
MR1 tanker /Korea |
37,562 |
2006 |
Tanker Pool (4) |
N/A |
N/A |
N/A |
(1) The vessel is currently participating in an unaffiliated
tanker pool specializing in the employment of Aframax tanker
vessels
(2) For vessels that are employed on the voyage/spot market, the
daily gross charter rate is considered as the TCE on the basis of
the expected completion date.
(3) Estimated completion date of the voyage.
(4) The vessel is currently participating in an unaffiliated
tanker pool specializing in the employment of Handysize tanker
vessels.
Financial Results Overview:
|
Three Months Ended |
|
Six Months Ended |
(expressed in U.S. dollars) |
|
June 30, 2021 (unaudited) |
|
|
June 30, 2020 (unaudited) |
|
|
June 30, 2021 (unaudited) |
|
|
June 30, 2020 (unaudited) |
Vessel revenues, net |
$ |
21,789,783 |
|
$ |
2,585,659 |
|
|
$ |
28,762,636 |
|
$ |
5,310,936 |
|
Operating
income |
$ |
7,038,253 |
|
$ |
659,851 |
|
|
$ |
8,529,692 |
|
|
1,241,992 |
|
Net income/
(loss) |
$ |
6,475,508 |
|
$ |
(144,600 |
) |
|
$ |
7,602,568 |
|
$ |
(404,468 |
) |
EBITDA(1) |
$ |
9,987,330 |
|
$ |
1,018,366 |
|
|
$ |
12,558,054 |
|
$ |
1,923,640 |
|
Earnings/(Loss) per common share |
$ |
0.07 |
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
$ |
(0.50 |
) |
(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 and six months
ended June 30, 2021 and 2020, respectively, that we believe are
useful in better analysing trends in our results of operations:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
(expressed in U.S. dollars except for operational
data) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Ownership days (1) (7) |
|
1,477 |
|
|
|
273 |
|
|
|
2,105 |
|
|
|
546 |
|
Available
days (2)(7) |
|
1,420 |
|
|
|
273 |
|
|
|
2,030 |
|
|
|
488 |
|
Operating
days (3) (7) |
|
1,380 |
|
|
|
273 |
|
|
|
1,978 |
|
|
|
488 |
|
Daily TCE
rate(4) |
$ |
14,381 |
|
|
$ |
9,090 |
|
|
$ |
13,705 |
|
|
$ |
10,351 |
|
Fleet
Utilization (5) |
|
97 |
% |
|
|
100 |
% |
|
|
97 |
% |
|
|
100 |
% |
Daily vessel
operating expenses (6) |
$ |
5,390 |
|
|
$ |
4,452 |
|
|
$ |
5,352 |
|
|
$ |
4,770 |
|
(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 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 that 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 June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues, net |
$ |
21,789,783 |
|
|
$ |
2,585,659 |
|
|
$ |
28,762,636 |
|
|
$ |
5,310,936 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses -including commissions to related party |
|
(1,368,565 |
) |
|
|
(104,093 |
) |
|
|
(941,593 |
) |
|
|
(259,600 |
) |
Vessel operating expenses |
|
(7,960,638 |
) |
|
|
(1,215,266 |
) |
|
|
(11,266,895 |
) |
|
|
(2,604,336 |
) |
General and administrative expenses (including related party
fees) |
|
(720,124 |
) |
|
|
(109,253 |
) |
|
|
(1,459,355 |
) |
|
|
(237,636 |
) |
Management fees -related parties |
|
(1,750,150 |
) |
|
|
(136,500 |
) |
|
|
(2,524,500 |
) |
|
|
(273,000 |
) |
Depreciation and amortization |
|
(2,952,053 |
) |
|
|
(360,696 |
) |
|
|
(4,040,601 |
) |
|
|
(694,372 |
) |
Operating income |
$ |
7,038,253 |
|
|
$ |
659,851 |
|
|
$ |
8,529,692 |
|
|
$ |
1,241,992 |
|
Interest and finance costs, net (including related party interest
costs) |
|
(485,646 |
) |
|
|
(802,270 |
) |
|
|
(840,762 |
) |
|
|
(1,633,736 |
) |
Other expenses, net |
|
(2,976 |
) |
|
|
(2,181 |
) |
|
|
(12,239 |
) |
|
|
(12,724 |
) |
US source income taxes |
|
(74,123 |
) |
|
|
— |
|
|
|
(74,123 |
) |
|
|
— |
|
Net income/(loss) |
$ |
6,475,508 |
|
|
$ |
(144,600 |
) |
|
$ |
7,602,568 |
|
|
$ |
(404,468 |
) |
Earnings/(loss) per common share (basic and
diluted) |
$ |
0.07 |
|
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
|
$ |
(0.50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding, basic |
|
88,933,581 |
|
|
|
1,222,427 |
|
|
|
73,384,422 |
|
|
|
802,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASTOR MARITIME INC.
Unaudited Condensed Consolidated Balance
Sheets (Expressed in U.S. Dollars—except for
number of share data)
|
|
June 30,
2021 |
|
|
December 31,
2020 |
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
40,032,095 |
|
$ |
8,926,903 |
Due from
related party |
|
1,831,311 |
|
|
1,559,132 |
Other
current assets |
|
8,614,300 |
|
|
3,078,119 |
Total current assets |
|
50,477,706 |
|
|
13,564,154 |
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
Vessels,
net |
|
300,516,947 |
|
|
58,045,628 |
Advances for
vessel acquisitions |
|
9,243,007 |
|
|
— |
Due from
related party |
|
1,104,394 |
|
|
— |
Other
non-currents assets |
|
5,650,447 |
|
|
2,761,573 |
Total non-current assets, net |
|
316,514,795 |
|
|
60,807,201 |
Total assets |
|
366,992,501 |
|
|
74,371,355 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current
portion of long-term debt, net – including related party |
|
12,153,410 |
|
|
7,102,037 |
Due to
related parties |
|
198,845 |
|
|
1,941 |
Trade
payables |
|
2,419,986 |
|
|
2,078,695 |
Accrued
liabilities |
|
3,616,175 |
|
|
1,613,109 |
Deferred
Revenue, net |
|
1,516,027 |
|
|
108,125 |
Total current liabilities |
|
19,904,443 |
|
|
10,903,907 |
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Long-term
debt, net |
|
37,120,639 |
|
|
11,083,829 |
Total non-current liabilities |
|
37,120,639 |
|
|
11,083,829 |
Total Liabilities |
|
57,025,082 |
|
|
21,987,736 |
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Common
shares, $0.001 par value; 1,950,000,000 shares authorized;
93,519,255 and 13,121,238 shares, issued and outstanding as at June
30, 2021 and December 31, 2020, respectively (1) |
|
93,519 |
|
|
13,121 |
Series A
Preferred Shares- 480,000 shares issued and outstanding as at June
30, 2021 and December 31, 2020 |
|
480 |
|
|
480 |
Series B
Preferred Shares- 12,000 shares issued and outstanding as at June
30, 2021 and December 31, 2020 |
|
12 |
|
|
12 |
Additional
paid-in capital |
|
303,587,575 |
|
|
53,686,741 |
Retained
Earnings/(Accumulated Deficit) |
|
6,285,833 |
|
|
(1,316,735) |
Total shareholders’ equity |
|
309,967,419 |
|
|
52,383,619 |
Total liabilities and shareholders’ equity |
$ |
366,992,501 |
|
$ |
74,371,355 |
CASTOR MARITIME INC.
Unaudited Consolidated Statements of Cash
Flows
(Expressed in U.S. Dollars—except for number of share
data) |
Six Months Ended June 30, |
|
|
2021 |
|
|
|
2020 |
Cash flows (used in)/provided by Operating
Activities: |
|
|
|
|
|
|
|
Net income/(loss) |
$ |
7,602,568 |
|
|
$ |
(404,468 |
) |
Adjustments to reconcile net income/(loss) to net cash
provided by/(used in) Operating activities: |
|
|
|
|
Vessels’
depreciation and amortization of deferred dry-docking costs |
|
4,040,601 |
|
|
|
694,372 |
|
Amortization
and write-off of deferred finance charges |
|
125,234 |
|
|
|
541,441 |
|
Amortization
of other deferred charges |
|
53,449 |
|
|
|
112,508 |
|
Deferred
revenue amortization |
|
(157,076 |
) |
|
|
(430,994 |
) |
Interest
settled in common stock |
|
— |
|
|
|
57,773 |
|
Amortization
and write-off of convertible notes beneficial conversion
feature |
|
— |
|
|
|
532,437 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts
receivable trade |
|
(1,496,824 |
) |
|
|
(705,003 |
) |
Inventories |
|
(2,836,214 |
) |
|
|
(47,380 |
) |
Due from/to
related parties |
|
(1,179,669 |
) |
|
|
288,538 |
|
Prepaid
expenses and other assets |
|
(901,228 |
) |
|
|
(260,596 |
) |
Dry-dock
costs paid |
|
(1,288,364 |
) |
|
|
(509,976 |
) |
Other
deferred charges |
|
(196,347 |
) |
|
|
— |
|
Accounts
payable |
|
515,337 |
|
|
|
(179,960 |
) |
Accrued
liabilities |
|
1,365,569 |
|
|
|
(17,290 |
) |
Deferred
revenue |
|
1,564,978 |
|
|
|
(62,021 |
) |
Net
Cash provided by/(used in) Operating Activities |
|
7,212,014 |
|
|
|
(390,619 |
) |
|
|
|
|
|
Cash
flows used in Investing Activities: |
|
|
|
|
Vessel
acquisitions and other vessel improvements |
|
(245,945,567 |
) |
|
|
(388,635 |
) |
Advances for
vessel acquisitions |
|
(9,178,452 |
) |
|
|
— |
|
Net
cash used in Investing Activities |
|
(255,124,019 |
) |
|
|
(388,635 |
) |
|
|
|
|
|
Cash
flows provided by Financing Activities: |
|
|
|
|
Gross
proceeds from issuance of common stock and warrants |
|
262,516,826 |
|
|
|
20,671,500 |
|
Common stock
issuance expenses |
|
(12,311,638 |
) |
|
|
(1,637,559 |
) |
Proceeds
from long-term debt |
|
33,290,000 |
|
|
|
9,500,000 |
|
Repayment of
long-term debt |
|
(1,571,000 |
) |
|
|
(950,000 |
) |
Payment of
deferred financing costs |
|
(756,051 |
) |
|
|
(608,985 |
) |
Net
cash provided by Financing Activities |
|
281,168,137 |
|
|
|
26,974,956 |
|
|
|
|
|
|
Net
increase in cash, cash equivalents, and restricted
cash |
|
33,256,132 |
|
|
|
26,195,702 |
|
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 |
$ |
42,683,035 |
|
|
$ |
31,254,641 |
|
|
|
|
|
|
All numbers of share and earnings per share
amounts in these unaudited interim 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. 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 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 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 June 30, |
|
|
Six Months Ended June 30, |
(In U.S. dollars, except for Available Days) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
Vessel revenues, net |
$ |
21,789,783 |
|
|
$ |
2,585,659 |
|
|
$ |
28,762,636 |
|
|
$ |
5,310,936 |
|
Voyage expenses -including commissions from related party |
|
(1,368,565 |
) |
|
|
(104,093 |
) |
|
|
(941,593 |
) |
|
|
(259,600 |
) |
TCE revenues |
$ |
20,421,218 |
|
|
$ |
2,481,566 |
|
|
$ |
27,821,043 |
|
|
$ |
5,051,336 |
|
Available Days |
|
1,420 |
|
|
|
273 |
|
|
|
2,030 |
|
|
|
488 |
|
TCE rate |
$ |
14,381 |
|
|
$ |
9,090 |
|
|
$ |
13,705 |
|
|
$ |
10,351 |
|
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 June 30, |
|
|
Six Months Ended June 30, |
(In U.S. dollars) |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss) |
$ |
6,475,508 |
|
$ |
(144,600 |
) |
|
$ |
7,602,568 |
|
$ |
(404,468 |
) |
Depreciation
and amortization |
|
2,952,053 |
|
|
360,696 |
|
|
|
4,040,601 |
|
|
694,372 |
|
Interest and
finance costs, net (including amortization of deferred financing
costs and beneficial conversion feature, as applicable) |
|
485,646 |
|
|
802,270 |
|
|
|
840,762 |
|
|
1,633,736 |
|
US source
income taxes |
|
74,123 |
|
|
— |
|
|
|
74,123 |
|
|
— |
|
EBITDA |
$ |
9,987,330 |
|
$ |
1,018,366 |
|
|
$ |
12,558,054 |
|
$ |
1,923,640 |
|
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 Chief Executive Officer
& Chief Financial Officer Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital Link Email:
castormaritime@capitallink.com
Castor Maritime (NASDAQ:CTRM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Castor Maritime (NASDAQ:CTRM)
Historical Stock Chart
From Apr 2023 to Apr 2024