Castor Maritime Inc. (NASDAQ: CTRM) (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and nine months ended September 30, 2022.
Highlights of the Third Quarter Ended
September 30, 2022:
- Revenues, net: $70.6
million for the three months ended September 30, 2022, as compared
to $43.3 million for the three months ended September 30, 2021, or
a 63.0% increase;
- Net income: $37.1 million
for the three months ended September 30, 2022, as compared to $15.5
million for the three months ended September 30, 2021, or a 139.4%
increase;
- Earnings (basic) per common
share: $0.39 earnings per share for the three months ended
September 30, 2022, as compared to earnings per share of $0.16 for
the three months ended September 30, 2021;
-
EBITDA(1):
$45.9 million for the three months ended September 30, 2022, as
compared to $21.2 million for the three months ended September 30,
2021; and
- Cash and restricted cash of
$144.1 million as of September 30, 2022, as compared to $43.4
million as of December 31, 2021.
Earnings Highlights of the Nine Months
Ended September 30, 2022:
- Revenues, net: $192.8
million for the nine months ended September 30, 2022, as compared
to $72.0 million for the nine months ended September 30, 2021, or a
167.8% increase;
- Net income: $84.9 million
for the nine months ended September 30, 2022, as compared to net
income of $23.1 million for the nine months ended September 30,
2021, or a 267.5% increase;
- Earnings (basic) per common
share: $0.90 earnings per share for the nine months ended September
30, 2022, as compared to earnings per share of $0.29 for the nine
months ended September 30, 2021; and
-
EBITDA(1):
$109.8 million for the nine months ended September 30, 2022, as
compared to $33.8 million for the nine months ended September 30,
2021.
(1) 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:
“In the third quarter of 2022 we achieved record
net earnings of $37.1 million, as we continued to see an upturn in
our earnings and operating cash flow aided by the better
Aframax/LR2 and Handysize vessel earnings along with another robust
quarter in the dry cargo market. Our nine months earnings per share
was $0.90 compared to our common share closing price of $1.32 as of
yesterday, November 22, 2022. We continue to generate healthy cash
flows, with $77.3 million of cash generated from our operations in
the nine months ended September 30, 2022. Our balance sheet is
strong with a healthy liquidity position with our total cash
exceeding our total gross debt.
As announced on November 16, 2022, we intend to
dividend out to our shareholders our tanker business, comprising
our Aframax/LR2 and Handysize tanker segments through the
distribution (the “Spin-Off”) of all of the common shares of our
currently wholly owned subsidiary, Toro Corp. (“Toro”). We believe
the Spin-Off is an important strategic step that will establish
Toro as a ‘pure play’ tanker business at a time of increased focus
on energy supplies and as the tanker shipping market enjoys strong
supply demand fundamentals, as demonstrated in the third
quarter.
The Aframax/LR2 and Handysize tanker segments
further improved their performance with combined operating income
for the nine months of 2022 of $27.6 million (of which $19.4
million was generated in the third quarter of 2022), and the
combined book value of their assets was $147.7 million as of
September 30, 2022, while our dry bulk segment continued to be
robust with operating income for the nine months of 2022 of $67.7
million (of which $22.1 million was generated in the third quarter
of 2022), and the book value of its assets was $339.7 million as of
September 30, 2022.
Further, we are excited about the agreed
acquisitions by Castor of two container vessels with charters
attached at attractive levels, which we expect to complete during
the fourth quarter of 2022. We will continue to monitor the trends
in vessel valuations and seek attractive acquisition opportunities
to further pursue Castor’s growth trajectory.”
Earnings Commentary:
Third Quarter ended September 30, 2022,
and 2021 Results
Vessel revenues, net of charterers’ commissions,
for the three months ended September 30, 2022, increased to $70.6
million from $43.3 million in the same period of 2021. This
variation was mainly driven by (i) the increase in our Available
Days (defined below) from 2,189 in the three months ended September
30, 2021, to 2,519 in the three months ended September 30, 2022,
following the expansion our fleet, and (ii) the improved
Aframax/LR2 and Handysize tanker markets that increased such
vessels’ earnings as compared to those of the vessels we owned in
the same period of 2021.
The increase in voyage expenses, to $8.1 million
in the three months ended September 30, 2022, from $6.3 million in
the same period of 2021, is mainly associated with (i) increased
bunkers costs for our Aframax/LR2 tanker segment during the three
months ended September 30, 2022 following a significant increase in
our bunker fuel costs as compared to the three months ended
September 30, 2021, and (ii) increased brokerage commission
expenses, corresponding to the increase in vessel revenues
discussed above.
The increase in vessel operating expenses by
$2.0 million, from $13.1 million in the three months ended
September 30, 2021 to $15.1 million in the same period of 2022, as
well as the increase in vessels’ depreciation and amortization
costs by $1.9 million, from $4.8 million in the three months ended
September 30, 2021 to $6.7 million in the same period of 2022,
mainly reflect the increase in our Ownership Days following the
expansion of our fleet.
General and administrative expenses in the three
months ended September 30, 2022, amounted to $2.3 million, whereas,
in the same period of 2021 general and administrative expenses
totaled to $0.6 million. This increase stemmed from higher
corporate fees primarily due to the growth of our company and the
amendments of our management agreements with our head manager,
Castor Ships S.A. (“Castor Ships”), with effect from July 1, 2022
(further discussed below).
Management fees in the three months ended
September 30, 2022, amounted to $2.4 million, whereas in the same
period of 2021, management fees totaled $2.1 million. This increase
in management fees is mainly due to the increase in our Ownership
Days for which our managers charge us with a daily management fee
and the amendments to our management agreements with Castor
Ships.
During the three months ended September 30,
2022, we incurred net interest costs and finance costs amounting to
$1.7 million compared to $0.9 million during the same period in
2021. The increase is due to our higher weighted average interest
rate, as well as the increase in our weighted average indebtedness,
during the three months ended September 30, 2022, as compared with
the same period of 2021.
Recent
Financial Developments
Commentary:
Equity update
From January 1, 2022 to date, no issuances of
common shares have taken place. As of November 22, 2022, we had
issued and outstanding 94,610,088 common shares.
Liquidity/ Financing/ Cash flow
update
Our consolidated cash position (including our
restricted cash) as of September 30, 2022 increased by $100.7
million to $144.1 million, as compared with our cash position on
December 31, 2021. During the nine-month period ended September 30,
2022, our cash position improved mainly as a result of: (i) $77.3
million of net operating cash flows generated, (ii) $12.6 million
of net proceeds from the sale of M/T Wonder Arcturus to an
unaffiliated third-party buyer and (iii) net financing cash inflows
of $54.3 million following our entry into a secured loan facility
in January 2022. During the nine months ended September 30, 2022 we
used $23.7 million to fund the acquisition of the M/V Magic
Callisto and other capital expenditures relating to our fleet and
$0.1 million on other investing activities, whereas $19.7 million
were used for scheduled principal repayments on our debt.
As of September 30, 2022, our total debt, gross
of unamortized deferred loan fees, was $139.1 million of which
$29.6 million is repayable within one year, as compared to $103.8
million of gross total debt as of December 31, 2021.
Recent
Business Developments
Commentary:
Amendment of our Master Management
Agreement with Castor Ships
Effective July 1, 2022, we and each of our
vessel owning subsidiaries entered, by mutual consent, into an
amended and restated master management agreement with Castor Ships,
appointing Castor Ships as commercial and technical manager for our
vessels (the “Amended and Restated Master Management Agreement”).
The Amended and Restated Master Management Agreement along with new
ship management agreements signed between each vessel owning
subsidiary and Castor Ships (together, the “Amended Castor Ship
Management Agreements”) superseded in their entirety our previous
management agreements with Castor Ships.
In exchange for the services provided by Castor
Ships, which include services relating to the technical and
commercial management of our fleet, we and our vessel owning
subsidiaries pay Castor Ships (i) a flat quarterly management fee
in the amount of $0.75 million for the management and
administration of our business, and (ii) a daily ship management
fee of $925 per dry bulk vessel and $975 per tanker vessel, as
applicable. As was the case under our previous management
agreements with Castor Ships, we continue to pay Castor Ships a
commission of 1.25% on all gross income received from the operation
of their vessels, and of 1% on each consummated sale and purchase
transaction. The Company also reimburses Castor Ships for
extraordinary fees and costs, such as the costs of extraordinary
repairs, maintenance or structural changes to the Company’s
vessels.
Acquisition of two containership
vessels
On October 26, 2022, two of our wholly owned
subsidiaries each entered into two separate agreements to acquire a
2005 German-built 2,700 TEU containership vessel, from two separate
entities beneficially owned by family members of our Chairman,
Chief Executive Officer and Chief Financial Officer. The purchase
price for such vessels is $25.75 million and $25.00 million,
respectively. The terms of these transactions were negotiated and
approved by a special committee of our disinterested and
independent directors. The delivery of the vessels is expected to
take place by the end of 2022.
Approval of the tanker business
Spin-Off
On November 16, 2022, we announced that our
Board of Directors consisting of our independent disinterested
members, has decided, on the recommendation of a special committee
of the Board, to effect a Spin-Off of our tanker fleet comprising
one Aframax, five Aframax/LR2 and two Handysize tankers. In the
Spin-Off, Castor shareholders will receive two common shares of
Toro, a newly formed subsidiary that will act as the holding
company for the eight tanker vessels, for every five Castor common
shares held at the close of business on December 6, 2022. The
distribution of all issued and outstanding common shares of Toro to
holders of common shares of Castor, shall occur on or around
December 15, 2022. In connection with the Spin-Off, Toro will issue
to Castor, and Castor will retain, perpetual preferred shares
having a stated amount of $60,000,000 with a cumulative preferred
distribution accruing initially at a rate of 1.00% per annum.
Toro has filed a registration statement on Form
20-F pursuant to the Securities Exchange Act of 1934 with the
Securities and Exchange Commission, which includes a more detailed
description of the terms of the proposed Spin-Off. The Spin-Off
remains subject, among other things, to the registration statement
on Form 20-F being declared effective and the approval of the
listing of Toro’s common shares on the Nasdaq Capital Market. There
can be no assurance that the Spin-Off will occur or, if it does
occur, of its terms or timing. A copy of the registration statement
on Form 20-F is available at www.sec.gov. The information in the
filed registration statement on Form 20-F is not final and remains
subject to change.
Fleet Employment Status (as of November
22, 2022) During the three months ended September 30,
2022, we operated on average 28.2 vessels earning a Daily TCE Rate
of $24,818 as compared to an average 24.3 vessels earning a Daily
TCE Rate of $16,913 during the same period in 2021. Our current
employment profile is presented immediately below.
Dry Bulk Carriers |
Vessel Name |
Type |
DWT |
Year Built |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Magic Orion |
Capesize |
180,200 |
2006 |
Japan |
TC (1) period |
101% of BCI5TC (2) |
Jan-24 |
Apr-24 |
Magic Venus |
Kamsarmax |
83,416 |
2010 |
Japan |
TC period |
$25,000 (3) |
Apr-23 |
Jul-23 |
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
TC period |
97% of BPI5TC |
Sep-23 |
Dec-23 |
Magic Argo |
Kamsarmax |
82,338 |
2009 |
Japan |
TC period |
103% of BPI5TC |
Apr-23 |
Jul-23 |
Magic Perseus |
Kamsarmax |
82,158 |
2013 |
Japan |
TC period |
100% of BPI5TC |
Sep-23 |
Dec-23 |
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
TC period |
114% of BPI4TC (4) |
Sep-22 |
Mar-23 |
Magic Twilight |
Kamsarmax |
80,283 |
2010 |
Korea |
TC period |
$27,150(5) |
Jan-23 |
Apr-23 |
Magic Nebula |
Kamsarmax |
80,281 |
2010 |
Korea |
TC period |
93% of BPI5TC |
May-23 |
Aug -23 |
Magic Nova |
Panamax |
78,833 |
2010 |
Japan |
TC period |
101% of BPI4TC |
Sep-23 |
Dec-23 |
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
101% of BPI4TC |
Oct-23 |
Dec-23 |
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
TC period |
$18,700 (6) |
Aug-23 |
Nov-23 |
Magic Horizon |
Panamax |
76,619 |
2010 |
Japan |
TC period |
14,000 (7) |
Jun-23 |
Sep-23 |
Magic Moon |
Panamax |
76,602 |
2005 |
Japan |
TC period |
$19,000(8) |
Apr-23 |
Jul-23 |
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
96% of BPI74 |
Sep-23 |
Dec-23 |
Magic Sun |
Panamax |
75,311 |
2001 |
Korea |
TC trip |
$17,250 & $725,000 gross ballast bonus |
Dec-22 |
Dec-22 |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
TC period |
$18,000(9) |
Apr-23 |
Jul-23 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
$22,000(10) |
Apr-23 |
Jun-23 |
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
91% of BPI5TC |
Nov-22 |
Feb-23 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
14,000 (11) |
Jul-23 |
Oct-23 |
Magic Rainbow |
Panamax |
73,593 |
2007 |
China |
TC trip |
$15,500 &$500,000 gross ballast bonus |
Dec-22 |
Dec-22 |
Aframax / LR2 Tankers |
Vessel Name |
Type |
DWT |
Year Built |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Wonder Polaris |
Aframax / LR2 |
115,351 |
2005 |
Korea |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Sirius |
Aframax / LR2 |
115,341 |
2005 |
Korea |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Bellatrix |
Aframax / LR2 |
115,341 |
2006 |
Korea |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Musica |
Aframax / LR2 |
106,290 |
2004 |
Korea |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Avior |
Aframax / LR2 |
106,162 |
2004 |
Korea |
Tanker Pool (12) |
N/A |
N/A |
N/A |
Wonder Vega |
Aframax |
106,062 |
2005 |
Korea |
Tanker Pool (13) |
N/A |
N/A |
N/A |
Handysize Tankers |
Vessel Name |
Type |
DWT |
Year Built |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Wonder Mimosa |
Handysize |
36,718 |
2006 |
Korea |
Tanker Pool (14) |
N/A |
N/A |
N/A |
Wonder Formosa |
Handysize |
36,660 |
2006 |
Korea |
Tanker Pool (14) |
N/A |
N/A |
N/A |
(1) |
TC stands for time charter. |
(2) |
The benchmark vessel used in
the calculation of the average of the Baltic Capesize Index (“BCI”)
5TC routes (“BCI5TC”) is a non-scrubber fitted 180,000mt dwt vessel
(Capesize) with specific age, speed – consumption, and design
characteristics. |
(3) |
The vessel’s daily gross
charter rate is equal to 100% of the Baltic Panamax Index 5TC
routes (“BPI5TC”). In accordance with the prevailing charter party,
on April 28, 2022 the owners converted the index-linked rate to
fixed from May 1, 2022 until March 31, 2023, at a rate of $25,000
per day. Upon completion of this period, the rate will be converted
back to index-linked. The benchmark vessel used in the calculation
of the average of the BPI5TC routes is a non-scrubber fitted
82,000mt dwt vessel (Kamsarmax) with specific age, speed –
consumption, and design characteristics. |
(4) |
Upon completion of its current
charter, estimated on or around December 3, 2022, the vessel is
fixed on a TC period for a period of minimum 11 months to maximum
14 months at a daily gross charter rate equal to 98% of
BPI5TC. |
(5) |
The vessel’s daily gross
charter rate is equal to 93% of BPI5TC. In accordance with the
prevailing charter party, on May 18, 2022 the owners converted the
index-linked rate to fixed from June 1, 2022 until December 31,
2022, at a rate of $27,150 per day. Upon completion of this period,
the rate will be converted back to index-linked. |
(6) |
The vessel’s daily gross
charter rate is equal to 102% of BPI4TC. In accordance with the
prevailing charter party, on July 14, 2022 the owners converted the
index-linked rate to fixed from October 1, 2022 until December 31,
2022, at a rate of $18,700 per day. Upon completion of this period,
the rate will be converted back to index-linked. |
(7) |
The vessel’s daily gross
charter rate is equal to 103% of BPI4TC. In accordance with the
prevailing charter party, on October 18, 2022 the owners converted
the index-linked rate to fixed from November 1, 2022 until March
31, 2023, at a rate of $14,000 per day. Upon completion of this
period, the rate will be converted back to index-linked. |
(8) |
The vessel’s daily gross
charter rate is equal to 95% of BPI4TC. In accordance with the
prevailing charter party, on July 20, 2022 the owners converted the
index-linked rate to fixed from August 1, 2022 until December 31,
2022, at a rate of $19,000 per day. Upon completion of this period,
the rate will be converted back to index-linked. |
(9) |
The vessel’s daily gross
charter rate is equal to 87.5% of BPI5TC. In accordance with the
prevailing charter party, on July 15, 2022 the owners converted the
index-linked rate to fixed from October 1, 2022 until December 31,
2022, at a rate of $18,000 per day. Upon completion of this period,
the rate will be converted back to index-linked. |
(10) |
The vessel’s daily gross
charter rate is equal to 99% of BPI4TC. In accordance with the
prevailing charter party, on June 15, 2022 the owners converted the
index-linked rate to fixed from July 1, 2022 until March 31, 2023,
at a rate of $22,000 per day. Upon completion of this period, the
rate will be converted back to index-linked. |
(11) |
The vessel’s daily gross
charter rate is equal to 101% of BPI4TC. In accordance with the
prevailing charter party, on October 18, 2022 the owners converted
the index-linked rate to fixed from November 1, 2022 until March
31, 2023, at a rate of $14,000 per day. Upon completion of this
period, the rate will be converted back to index-linked. |
(12) |
The vessel is currently
participating in the V8 Plus Pool, a pool operating Aframax tankers
aged 15 years or more that is managed by V8 Plus Management Pte
Ltd., a company in which Petros Panagiotidis has a minority equity
interest. |
(13) |
The vessel is currently
participating in an unaffiliated tanker pool specializing in the
employment of Aframax tanker vessels. |
(14) |
The vessel is currently
participating in an unaffiliated tanker pool specializing in the
employment of Handysize tanker vessels. |
|
|
Financial Results Overview
(Consolidated):
Set forth below are selected financial data for
each of the three and nine months ended September 30, 2022 and
2021, respectively:
|
Three Months Ended |
|
|
Nine Months Ended |
(Expressed in U.S.
dollars) |
September 30,2022(unaudited) |
|
September 30,2021(unaudited) |
|
September 30,2022(unaudited) |
|
September 30,2021(unaudited) |
Vessel revenues, net |
$ |
70,641,593 |
|
$ |
43,276,286 |
|
$ |
192,780,572 |
|
$ |
72,038,922 |
Operating income |
$ |
39,170,675 |
|
$ |
16,442,780 |
|
$ |
90,835,872 |
|
$ |
24,972,472 |
Net income |
$ |
37,149,358 |
|
$ |
15,457,076 |
|
$ |
84,879,142 |
|
$ |
23,059,644 |
EBITDA(1) |
$ |
45,934,758 |
|
$ |
21,225,058 |
|
$ |
109,841,960 |
|
$ |
33,783,112 |
Earnings (basic) per common
share |
$ |
0.39 |
|
$ |
0.16 |
|
$ |
0.90 |
|
$ |
0.29 |
(1) |
EBITDA is not
a recognized measure under U.S. GAAP. Please refer to Appendix B of
this 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. |
Consolidated Fleet Selected Financial
and Operational Data:
Set forth below are selected financial and
operational data of our fleet for each of the three and nine months
ended September 30, 2022 and 2021, respectively, that we believe
are useful in analyzing trends in our results of operations:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
(Expressed in U.S.
dollars except for operational data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Ownership Days(1) (7) |
|
2,590 |
|
|
|
2,235 |
|
|
|
7,835 |
|
|
|
4,340 |
|
Available Days(2)(7) |
|
2,519 |
|
|
|
2,189 |
|
|
|
7,690 |
|
|
|
4,224 |
|
Operating Days(3) (7) |
|
2,514 |
|
|
|
2,144 |
|
|
|
7,634 |
|
|
|
4,143 |
|
Daily TCE Rate(4) |
$ |
24,818 |
|
|
$ |
16,913 |
|
|
$ |
21,405 |
|
|
$ |
15,351 |
|
Fleet Utilization(5) |
|
100 |
% |
|
|
98 |
% |
|
|
99 |
% |
|
|
98 |
% |
Daily vessel operating
expenses(6) |
$ |
5,843 |
|
|
$ |
5,872 |
|
|
$ |
5,980 |
|
|
$ |
5,620 |
|
(1) |
Ownership Days are the total number of calendar days in a period
during which we owned a vessel. |
(2) |
Available Days are the
Ownership Days in a period less the aggregate number of days our
vessels are off-hire due to scheduled repairs, dry-dockings or
special or intermediate surveys. |
(3) |
Operating Days are the
Available Days in a period after subtracting unscheduled 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 Ownership
Days, Available Days, Operating Days, Fleet Utilization may not be
comparable to those reported by other companies. |
|
|
APPENDIX A
CASTOR MARITIME
INC.Unaudited Condensed Consolidated Statements of
Comprehensive Income(Expressed in U.S.
Dollars—except for number of share data)
(In U.S. dollars except for
number of share data) |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues, net |
$ |
70,641,593 |
|
|
$ |
43,276,286 |
|
|
$ |
192,780,572 |
|
|
$ |
72,038,922 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses (including
commissions to related party) |
|
(8,125,287 |
) |
|
|
(6,252,793 |
) |
|
|
(28,179,695 |
) |
|
|
(7,194,386 |
) |
Vessel operating expenses |
|
(15,134,191 |
) |
|
|
(13,124,947 |
) |
|
|
(46,856,395 |
) |
|
|
(24,391,842 |
) |
General and administrative
expenses (including related party fees) |
|
(2,342,422 |
) |
|
|
(613,436 |
) |
|
|
(4,403,724 |
) |
|
|
(2,072,791 |
) |
Management fees -related
parties |
|
(2,433,250 |
) |
|
|
(2,065,500 |
) |
|
|
(6,894,900 |
) |
|
|
(4,590,000 |
) |
Depreciation and
amortization |
|
(6,658,399 |
) |
|
|
(4,776,830 |
) |
|
|
(18,832,617 |
) |
|
|
(8,817,431 |
) |
Gain on sale of vessel |
|
3,222,631 |
|
|
|
— |
|
|
|
3,222,631 |
|
|
|
— |
|
Operating income |
$ |
39,170,675 |
|
|
$ |
16,442,780 |
|
|
$ |
90,835,872 |
|
|
$ |
24,972,472 |
|
Interest and finance costs,
net (including related party interest costs)(1) |
|
(1,733,758 |
) |
|
|
(876,644 |
) |
|
|
(5,079,920 |
) |
|
|
(1,717,406 |
) |
Other income/(expenses),
net |
|
105,684 |
|
|
|
5,448 |
|
|
|
173,471 |
|
|
|
(6,791 |
) |
US source income taxes |
|
(393,243 |
) |
|
|
(114,508 |
) |
|
|
(1,050,281 |
) |
|
|
(188,631 |
) |
Net income |
$ |
37,149,358 |
|
|
$ |
15,457,076 |
|
|
$ |
84,879,142 |
|
|
$ |
23,059,644 |
|
Earnings per common
share (basic)(2) |
$ |
0.39 |
|
|
$ |
0.16 |
|
|
$ |
0.90 |
|
|
$ |
0.29 |
|
Earnings per common
share (diluted)(2) |
$ |
0.39 |
|
|
$ |
0.16 |
|
|
$ |
0.90 |
|
|
$ |
0.28 |
|
Weighted average number of
common shares outstanding, basic(2): |
|
94,610,088 |
|
|
|
93,971,142 |
|
|
|
94,610,088 |
|
|
|
80,322,071 |
|
Weighted average number of
common shares outstanding, diluted(2): |
|
94,610,088 |
|
|
|
93,971,142 |
|
|
|
94,610,088 |
|
|
|
82,201,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASTOR MARITIME INC.Unaudited Condensed
Consolidated Balance
Sheets(Expressed in U.S. Dollars—except for number
of share data)
|
|
September 30,2022 |
|
|
December 31,2021 |
ASSETS |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
$ |
133,894,707 |
|
$ |
37,173,736 |
Restricted cash |
|
2,173,538 |
|
|
2,382,732 |
Due from related parties |
|
10,045,668 |
|
|
— |
Other current assets |
|
23,839,790 |
|
|
15,443,620 |
Total current assets |
|
169,953,703 |
|
|
55,000,088 |
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
Vessels, net |
|
392,887,671 |
|
|
393,965,929 |
Advances for vessel
acquisition |
|
— |
|
|
2,368,165 |
Restricted cash |
|
8,045,000 |
|
|
3,830,000 |
Due from related party |
|
4,841,573 |
|
|
810,437 |
Other non-currents assets |
|
6,834,229 |
|
|
6,938,823 |
Total non-current
assets, net |
|
412,608,473 |
|
|
407,913,354 |
Total assets |
|
582,562,176 |
|
|
462,913,442 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current portion of long-term
debt, net |
|
28,866,224 |
|
|
16,091,723 |
Due to related parties |
|
— |
|
|
4,507,569 |
Other current liabilities |
|
17,437,575 |
|
|
13,430,104 |
Total current liabilities |
|
46,303,799 |
|
|
34,029,396 |
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
Long-term debt, net |
|
108,444,865 |
|
|
85,949,676 |
Total non-current
liabilities |
|
108,444,865 |
|
|
85,949,676 |
Total liabilities |
|
154,748,664 |
|
|
119,979,072 |
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
Common shares, $0.001 par
value; 1,950,000,000 shares authorized; 94,610,088 shares issued
and outstanding as at September 30, 2022 and December 31,
2021(2) |
|
94,610 |
|
|
94,610 |
Series B Preferred Shares-
12,000 shares issued and outstanding as at September 30, 2022 and
December 31, 2021 |
|
12 |
|
|
12 |
Additional paid-in
capital |
|
303,658,153 |
|
|
303,658,153 |
Retained Earnings |
|
124,060,737 |
|
|
39,181,595 |
Total shareholders’ equity |
|
427,813,512 |
|
|
342,934,370 |
Total liabilities and shareholders’ equity |
$ |
582,562,176 |
|
$ |
462,913,442 |
CASTOR MARITIME
INC.Unaudited Consolidated Statements of Cash
Flows
(Expressed in U.S.
Dollars) |
Nine Months Ended September 30, |
|
2022 |
|
2021 |
Cash flows provided by
Operating Activities: |
|
|
|
|
|
Net income |
$ |
84,879,142 |
|
|
$ |
23,059,644 |
|
Adjustments to
reconcile net income to net cash provided by Operating
activities: |
|
|
|
|
|
Depreciation and
amortization |
|
18,832,617 |
|
|
|
8,817,431 |
|
Amortization of deferred
finance charges |
|
643,769 |
|
|
|
259,264 |
|
Amortization of fair value of
acquired time charter |
|
— |
|
|
|
(1,024,486 |
) |
Gain on sale of vessel |
|
(3,222,631 |
) |
|
|
— |
|
Unrealized gains from equity
securities |
|
(39,756 |
) |
|
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
Accounts receivable trade,
net |
|
(2,988,192 |
) |
|
|
(3,788,637 |
) |
Inventories |
|
(3,643,324 |
) |
|
|
(3,447,491 |
) |
Due from/to related
parties |
|
(18,584,373 |
) |
|
|
1,497,353 |
|
Prepaid expenses and other
assets |
|
(840,806 |
) |
|
|
(2,463,591 |
) |
Other deferred charges |
|
(23,342 |
) |
|
|
(239,069 |
) |
Accounts payable |
|
4,210,292 |
|
|
|
3,774,595 |
|
Accrued liabilities |
|
2,662,324 |
|
|
|
786,065 |
|
Deferred revenue |
|
(1,866,226 |
) |
|
|
3,985,585 |
|
Dry-dock costs paid |
|
(2,749,705 |
) |
|
|
(2,695,383 |
) |
Net cash provided by
Operating Activities |
|
77,269,789 |
|
|
|
28,521,280 |
|
|
|
|
|
|
|
Cash flows used in
Investing Activities: |
|
|
|
|
|
Vessel acquisitions and other
vessel improvements |
|
(23,679,690 |
) |
|
|
(308,764,151 |
) |
Proceeds from vessel sale |
|
12,641,284 |
|
|
|
— |
|
Purchase of equity
securities |
|
(60,750 |
) |
|
|
— |
|
Advances for vessel
acquisition |
|
— |
|
|
|
(3,757,694 |
) |
Net cash used in
Investing Activities |
|
(11,099,156 |
) |
|
|
(312,521,845 |
) |
|
|
|
|
|
|
Cash flows provided by
Financing Activities: |
|
|
|
|
|
Gross proceeds from issuance
of common stock and warrants |
|
— |
|
|
|
265,307,807 |
|
Common stock issuance
expenses |
|
(65,797 |
) |
|
|
(12,381,108 |
) |
Proceeds from long-term
debt |
|
55,000,000 |
|
|
|
74,040,000 |
|
Repayment of long-term
debt |
|
(19,673,500 |
) |
|
|
(3,442,000 |
) |
Repayment of related party
debt |
|
— |
|
|
|
(5,000,000 |
) |
Payment of deferred financing
costs |
|
(704,559 |
) |
|
|
(1,573,499 |
) |
Net cash provided by
Financing Activities |
|
34,556,144 |
|
|
|
316,951,200 |
|
|
|
|
|
|
|
Net increase in cash,
cash equivalents, and restricted cash |
|
100,726,777 |
|
|
|
32,950,635 |
|
Cash, cash equivalents
and restricted cash at the beginning of the period |
|
43,386,468 |
|
|
|
9,426,903 |
|
Cash, cash equivalents
and restricted cash at the end of the period |
$ |
144,113,245 |
|
|
$ |
42,377,538 |
|
|
|
|
|
|
|
(1) |
Includes interest and finance costs and interest income, if
any. |
|
|
(2) |
All comparative numbers of share and earnings per share amounts
in these unaudited condensed financial statements have been
retroactively adjusted to reflect the Company’s one-for-ten reverse
stock split effected on May 28, 2021. |
|
|
APPENDIX B
Non-GAAP Financial
Information
Daily TCE Rate. The Daily Time
Charter Equivalent Rate (“Daily TCE Rate”) is a measure of the
average daily revenue performance of a vessel. We calculate Daily
TCE Rate by dividing total revenues (time charter and/or voyage
charter revenues, and/or pool revenues, net of charterers’
commissions), less voyage expenses, by the number of Available Days
during that period. Under a time charter, the charterer pays
substantially all the vessel voyage related expenses. However, we
may incur voyage related expenses when positioning or repositioning
vessels before or after the period of a time or other charter,
during periods of commercial waiting time or while off-hire during
dry docking or due to other unforeseen circumstances. Under voyage
charters, the majority of voyage expenses are generally borne by
us. The Daily TCE Rate is not a measure of financial performance
under U.S. GAAP (non-GAAP measure) and should not be considered as
an alternative to any measure of financial performance presented in
accordance with U.S. GAAP. However, the Daily TCE Rate is a
standard shipping industry performance measure used primarily to
compare period-to-period changes in a company’s performance and,
management believes that the Daily TCE Rate provides meaningful
information to our investors since it compares daily net earnings
generated by our vessels irrespective of the mix of charter types
(i.e., time charter, voyage charter or other) under which our
vessels are employed between the periods while it further assists
our management in making decisions regarding the deployment and use
of our vessels and in evaluating our financial performance. Our
calculation of the Daily TCE Rates may not be comparable to that
reported by other companies. The following table reconciles the
calculation of the Daily TCE Rate for our fleet to Vessel revenues,
net, for the periods presented (amounts in U.S. dollars, except for
Available Days):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In U.S. dollars, except for
Available Days) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Vessel revenues, net |
$ |
70,641,593 |
|
|
$ |
43,276,286 |
|
|
$ |
192,780,572 |
|
|
$ |
72,038,922 |
|
Voyage expenses -including
commissions from related party |
|
(8,125,287 |
) |
|
|
(6,252,793 |
) |
|
|
(28,179,695 |
) |
|
|
(7,194,386 |
) |
TCE revenues |
$ |
62,516,306 |
|
|
$ |
37,023,493 |
|
|
$ |
164,600,877 |
|
|
$ |
64,844,536 |
|
Available Days |
|
2,519 |
|
|
|
2,189 |
|
|
|
7,690 |
|
|
|
4,224 |
|
Daily TCE Rate |
$ |
24,818 |
|
|
$ |
16,913 |
|
|
$ |
21,405 |
|
|
$ |
15,351 |
|
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 operating
performance 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 income, the most directly comparable U.S. GAAP financial
measure, for the periods presented:
Reconciliation of EBITDA to Net Income
|
Three Months Ended September 30, |
|
Nine Months Ended September
30, |
(In U.S. dollars) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Net Income |
$ |
37,149,358 |
|
$ |
15,457,076 |
|
$ |
84,879,142 |
|
$ |
23,059,644 |
Depreciation and
amortization |
|
6,658,399 |
|
|
4,776,830 |
|
|
18,832,617 |
|
|
8,817,431 |
Interest and finance costs,
net (including related party interest costs)(1) |
|
1,733,758 |
|
|
876,644 |
|
|
5,079,920 |
|
|
1,717,406 |
US source income taxes |
|
393,243 |
|
|
114,508 |
|
|
1,050,281 |
|
|
188,631 |
EBITDA |
$ |
45,934,758 |
|
$ |
21,225,058 |
|
$ |
109,841,960 |
|
$ |
33,783,112 |
(1) Includes interest and finance costs and interest
income, if any.
Cautionary Statement Regarding
Forward-Looking Statements Matters discussed in this press
release may constitute forward-looking statements. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended (the “Securities Act”)
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts. We are including
this cautionary statement in connection with this safe harbor
legislation. The words “believe”, “anticipate”, “intend”,
“estimate”, “forecast”, “project”, “plan”, “potential”, “will”,
“may”, “should”, “expect”, “pending” and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management’s examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these forward-looking statements, including these
expectations, beliefs or projections. We undertake no obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise. In addition to these
important factors, other important factors that, in our view, could
cause actual results to differ materially from those discussed in
the forward‐looking statements include our business strategy,
shipping markets conditions and trends, the rapid growth of our
fleet, our relationships with our current and future service
providers and customers, our ability to borrow under existing or
future debt agreements or to refinance our debt on favorable terms
and our ability to comply with the covenants contained therein, our
continued ability to enter into time or voyage charters with
existing and new customers and to re-charter our vessels upon the
expiry of the existing charters, changes in our operating and
capitalized expenses, our ability to fund future capital
expenditures and investments in the acquisition and refurbishment
of our vessels, instances of off-hire, the effects of the proposed
Spin-Off, future sales of our securities in the public market and
our ability to maintain compliance with applicable listing
standards, volatility in our share price, potential conflicts of
interest involving members of our Board of Directors, senior
management and certain of our service providers that are related
parties, general domestic and international political conditions or
events (including “trade wars”, global public health threats and
major outbreaks of disease), changes in seaborne and other
transportation, changes in governmental rules and regulations or
actions taken by regulatory authorities, and the impact of adverse
weather and natural disasters. 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 PanagiotidisChief Executive Officer &
Chief Financial Officer Castor Maritime Inc. Email:
ir@castormaritime.com
Media Contact: Kevin Karlis Capital LinkEmail:
castormaritime@capitallink.com
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