Castor Maritime Inc. (NASDAQ: CTRM) (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and year ended December 31, 2022.
Highlights of the Fourth Quarter Ended
December 31, 2022:
- Total Vessel Revenues:
$69.3 million for the three months ended December 31, 2022, as
compared to $60.0 million for the three months ended December 31,
2021, or a 15.5% increase;
- Net income: $33.7 million
for the three months ended December 31, 2022, as compared to $29.2
million for the three months ended December 31, 2021, or a 15.4%
increase;
- Earnings (basic) per common
share: $0.36 per share for the three months ended December 31,
2022, as compared to $0.18 per share for the three months ended
December 31, 2021;
-
EBITDA(1): $42.9 million
for the three months ended December 31, 2022, as compared to $36.1
million for the three months ended December 31, 2021;
- Cash and restricted cash of
$152.3 million as of December 31, 2022, as compared to $43.4
million as of December 31, 2021; and
- The spin-off
of our Aframax/LR2 and Handysize tanker segments to a new
Nasdaq-listed company, Toro Corp. was completed on March 7,
2023.
Earnings Highlights of the Year Ended
December 31, 2022:
- Total Vessel Revenues:
$262.1 million for the year ended December 31, 2022, as compared to
$132.0 million for the year ended December 31, 2021, or a 98.6%
increase;
- Net income: $118.6 million
for the year ended December 31, 2022, as compared to net income of
$52.3 million for the year ended December 31, 2021, or a 126.8%
increase;
- Earnings (basic) per common
share: $1.25 per share for the year ended December 31, 2022, as
compared to $0.48 per share for the year ended December 31, 2021;
and
-
EBITDA(1): $152.8 million
for the year ended December 31, 2022, as compared to $69.9 million
for the year ended December 31, 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 Net income, 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:
“2022 was a record year for the net earnings of
Castor aided, mainly, by the higher Aframax/LR2 and Handysize
vessel earnings following the timely acquisitions we made in the
tanker sector during 2021. We enjoyed strong cash flows as our
operating cash flow more than doubled in 2022 compared to 2021 to
$123.8 million and our balance sheet is strong, positioning us to
further pursue our growth strategy in 2023.
The Aframax/LR2 and Handysize tanker segments
further improved their performance with combined operating income
for the twelve months of 2022 of $53.7 million (of which $26.1
million was generated in the fourth quarter of 2022), and the
combined book value of these segments’ assets was $157.5 million as
of December 31, 2022, while our dry bulk segment continued to be
robust with operating income for the twelve months of 2022 of $80.1
million (of which $12.4 million was generated in the fourth quarter
of 2022), and the book value of its assets was $339.6 million as of
December 31, 2022.
On March 7, 2023, we completed the previously
announced spin-off of our Aframax/LR2 and Handysize tanker segments
through the distribution of all of the common shares of Toro Corp.
(“Toro”) to our shareholders of record as of February 22, 2023 (the
“Spin-Off”). We believe the Spin-Off, which represents a
substantial payment by Castor to its shareholders, 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 especially in the second half of 2022.
Castor has retained 20 dry bulk and two
container vessels, totaling a sizeable fleet of 22 vessels with an
average age of 13.7 years enjoying a strong balance sheet. The dry
bulk fundamentals remain healthy given the historically low order
book and the improved outlook of the Chinese economy.”
Earnings Commentary:
Fourth Quarter ended December 31, 2022,
and 2021 Results
Total vessel revenues for the three months ended
December 31, 2022, increased to $69.3 million from $60.0 million in
the same period of 2021. This variation was mainly driven by (i)
the improved Aframax/LR2 and Handysize tanker charter rates and
pool earnings that our vessels earned, and (ii) the increase in our
Available Days (defined below) from 2,433 in the three months ended
December 31, 2021, to 2,522 in the three months ended December 31,
2022, following the expansion of our fleet.
The decrease in voyage expenses to $4.9 million
in the three months ended December 31, 2022, from $5.8 million in
the same period of 2021, is mainly associated with decreased port
costs and bunkers consumption for our Aframax/LR2 tankers,
attributable to their gradual entry during the fourth quarter of
2022 into the V8 Plus Pool, a pool of Aframax tankers aged fifteen
(15) years or more. When our vessels operate in pools, we incur no
third-party brokerage commissions and port costs are handled by our
pool operators.
The increase in vessel operating expenses by
$1.3 million, from $14.8 million in the three months ended December
31, 2021 to $16.1 million in the same period of 2022, as well as
the increase in vessels’ depreciation and amortization costs by
$1.5 million, from $5.5 million in the three months ended December
31, 2021 to $7.0 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 December 31, 2022, amounted to $2.6 million, whereas,
in the same period of 2021 general and administrative expenses
totaled to $1.2 million. This increase stemmed from higher
corporate fees primarily due to the Toro Spin-Off and a higher fee
paid to Castor Ships, our manager, following entry into an amended
and restated master management agreement with Castor Ships with
effect from July 1, 2022.
Management fees in the three months ended
December 31, 2022, amounted to $2.5 million, whereas in the same
period of 2021, management fees totaled $2.2 million. This increase
in management fees is mainly due to the increase in our Ownership
Days for which our managers charge us a daily management fee,
stemming from the expansion of our fleet and the aforementioned
amendments to our management agreements with Castor Ships.
During the three months ended December 31, 2022,
we incurred net interest costs and finance costs amounting to $1.9
million compared to $1.1 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 December 31, 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 March 6, 2023, we had
94,610,088 common shares issued and outstanding.
Liquidity/ Financing/ Cash flow
update
Our consolidated cash position (including our
restricted cash) as of December 31, 2022 increased by $108.9
million to $152.3 million, as compared with our cash position on
December 31, 2021. During the year ended December 31, 2022, our
cash position improved mainly as a result of: (i) $123.8 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 $76.5
million following our entry into two secured loan facilities in
January 2022 and November 2022. During the year ended December 31,
2022 we used $76.4 million to fund the acquisitions of the M/V
Magic Callisto, M/V Ariana A, M/V Gabriela A and other capital
expenditures relating to our fleet, whereas $27.5 million were used
for scheduled principal repayments on our debt.
As of December 31, 2022, our total debt, gross
of unamortized deferred loan fees, was $153.7 million of which
$32.5 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:
Completion of the tanker business
Spin-Off
On March 7, 2023, we completed our previously
announced Spin-Off of our tanker fleet comprising one Aframax, five
Aframax/LR2 and two Handysize tankers. In the Spin-Off
distribution, Castor shareholders received one common share of Toro
for every ten Castor common shares held at the close of business on
February 22, 2023. Additional information about Toro and the
Spin-Off transaction can be found in the Toro registration
statement filed pursuant to the Securities Exchange Act of 1934 on
Form 20-F, which is available at www.sec.gov.
Fleet Employment Status (as of March 6,
2023) During the three months ended December 31, 2022, we
operated on average 28.8 vessels earning a Daily TCE
Rate(2) of $25,559 as compared to an average of
26.8 vessels earning a Daily TCE Rate(2) of
$22,299 during the same period in 2021. Our current employment
profile is presented immediately below.
(2) Daily TCE Rate is not a recognized measure
under U.S. GAAP. Please refer to Appendix B for the definition and
reconciliation of this measure to Total vessel revenues, the most
directly comparable financial measure calculated and presented in
accordance with U.S. GAAP.
Dry Bulk Carriers |
Vessel Name |
Type |
DWT |
YearBuilt |
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-24 |
Jul-24 |
Magic Thunder |
Kamsarmax |
83,375 |
2011 |
Japan |
TC period |
$14,000(4) |
Sep-23 |
Dec-23 |
Magic Argo |
Kamsarmax |
82,338 |
2009 |
Japan |
TC period |
103% of BPI5TC |
Apr-24 |
Jul-24 |
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 |
98% of BPI5TC |
Nov-23 |
Feb-24 |
Magic Twilight |
Kamsarmax |
80,283 |
2010 |
Korea |
TC trip |
$4,300 + $100,000 ballast bonus |
Mar-23 |
Mar-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(5) |
Sep-23 |
Dec-23 |
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
102% of BPI74 |
Oct-23 |
Jan-24 |
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
TC period |
102% BPI4TC |
Aug-23 |
Nov-23 |
Magic Horizon |
Panamax |
76,619 |
2010 |
Japan |
TC period |
$14,000(6) |
Jun-23 |
Sep-23 |
Magic Moon |
Panamax |
76,602 |
2005 |
Japan |
TC period |
95% of BPI4TC |
Apr-23 |
Jul-23 |
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
$13,100(7) |
Oct-23 |
Jan-24 |
Magic Sun |
Panamax |
75,311 |
2001 |
Korea |
TC trip |
$9,000 |
Apr-23 |
Apr-23 |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
TC period |
87.5% of BPI5TC(8) |
Apr-23 |
Jul-23 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
$22,000(9) |
Apr-24 |
Jun-24 |
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
100% of BPI4TC |
Dec-23 |
Mar-24 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
$14,000(10) |
Jul-23 |
Oct-23 |
Magic Rainbow |
Panamax |
73,593 |
2007 |
China |
Unfixed |
N/A |
N/A |
N/A |
|
Containerships |
Vessel Name |
Type |
DWT |
YearBuilt |
Country of Construction |
Type of Employment |
Daily Gross Charter Rate |
Estimated Redelivery Date |
Earliest |
Latest |
Ariana A |
Containership |
38,117 |
2005 |
Germany |
TC period |
$23,250 |
Apr-23 |
Jul-23 |
Gabriela A |
Containership |
38,121 |
2005 |
Germany |
TC period |
$26,350 |
Feb-24 |
May-24 |
(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) The vessel’s daily
gross charter rate is equal to 97% of BPI5TC. In accordance with
the prevailing charter party, on January 1, 2023 the owners
converted the index-linked rate to fixed from February 1, 2023
until June 30, 2023, at a rate of $14,000 per day. Upon completion
of this period, the rate will be converted back to index-linked.
(5) The benchmark vessel used in the calculation of the average of
the BPI4TC routes is a non-scrubber fitted 74,000mt dwt vessel
(Panamax) with specific age, speed – consumption, and design
characteristics.(6) 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 and, further, on February 27, 2023, converted the
index-linked rate to fixed from April 1, 2023 to June 30, 2023 at a
rate of $15,300 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 96% of BPI4TC. In accordance with the
prevailing charter party, on January 16, 2023 the owners converted
the index-linked rate to fixed from February 1, 2023 until
September 30, 2023, at a rate of $13,100 per day. Upon completion
of this period, the rate will be converted back to index-linked.(8)
After redelivery from the current charter, estimated to take place
between April and July 2023 in accordance with the prevailing
charterparty terms, the vessel has been fixed for a period of
minimum 12 to maximum 15 months, at a daily gross charter rate
equal to 95% of BPI4TC.(9) 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.(10) 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 and, further, on February
27, 2023, converted the index-linked rate to fixed from April 1,
2023 to June 30, 2023 at a rate of $15,000 per day. Upon completion
of this period, the rate will be converted back to
index-linked.
Financial Results Overview (Consolidated):
Set forth below are selected financial data for
each of the three months and year ended December 31, 2022 and 2021,
respectively:
|
Three Months Ended |
|
|
Year Ended |
(Expressed in U.S.
dollars) |
|
December 31, 2022(unaudited) |
|
December 31, 2021(unaudited) |
|
|
December 31, 2022(unaudited) |
|
December 31, 2021(unaudited) |
Total vessel revenues |
$ |
69,321,426 |
|
$ |
60,010,788 |
|
|
$ |
262,101,998 |
|
$ |
132,049,710 |
|
Operating income |
$ |
35,943,941 |
|
$ |
30,546,613 |
|
|
$ |
126,779,813 |
|
$ |
55,519,085 |
|
Net income |
$ |
33,681,548 |
|
$ |
29,210,843 |
|
|
$ |
118,560,690 |
|
$ |
52,270,487 |
|
EBITDA(1) |
$ |
42,923,244 |
|
$ |
36,127,417 |
|
|
$ |
152,765,204 |
|
$ |
69,910,529 |
|
Earnings (basic) per common
share |
$ |
0.36 |
|
$ |
0.18 |
|
|
$ |
1.25 |
|
$ |
0.48 |
|
(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 Net income, 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 months and year
ended December 31, 2022 and 2021, respectively, that we believe are
useful in analyzing trends in our results of operations. For pro
forma financial information reflecting the performance of our
business after giving effect to the Spin-Off, see our Current
Report on Form 6-K filed on March 8, 2023, which is available at
www.sec.gov.
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
(Expressed in U.S. dollars except for operational
data) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Ownership Days (1)(7) |
|
2,647 |
|
2,467 |
|
|
10,482 |
|
6,807 |
Available Days (2)(7) |
|
2,522 |
|
2,433 |
|
|
10,212 |
|
6,657 |
Operating Days (3)(7) |
|
2,519 |
|
2,419 |
|
|
10,153 |
|
6,562 |
Daily TCE Rate (4) |
$ |
25,559 |
$ |
22,299 |
|
$ |
22,431 |
$ |
17,891 |
Fleet Utilization (5) |
|
100% |
|
99% |
|
|
99% |
|
99% |
Daily vessel operating
expenses (6) |
$ |
6,087 |
$ |
6,004 |
|
$ |
6,007 |
$ |
5,759 |
(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 for the definition and
reconciliation of this measure to Total vessel revenues, 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 EndedDecember
31, |
|
|
Year EndedDecember 31, |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
REVENUES |
|
|
|
|
|
|
|
|
|
Total vessel revenues |
$ |
69,321,426 |
|
$ |
60,010,788 |
|
|
$ |
262,101,998 |
|
$ |
132,049,710 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
Voyage expenses (including
commissions to related party) |
|
(4,860,995 |
) |
|
(5,756,397 |
) |
|
|
(33,040,690 |
) |
|
(12,950,783 |
) |
Vessel operating expenses |
|
(16,111,449 |
) |
|
(14,811,629 |
) |
|
|
(62,967,844 |
) |
|
(39,203,471 |
) |
General and administrative
expenses (including related party fees) |
|
(2,640,213 |
) |
|
(1,193,519 |
) |
|
|
(7,043,937 |
) |
|
(3,266,310 |
) |
Management fees - related
parties |
|
(2,501,000 |
) |
|
(2,154,750 |
) |
|
|
(9,395,900 |
) |
|
(6,744,750 |
) |
Depreciation and
amortization |
|
(6,997,096 |
) |
|
(5,545,397 |
) |
|
|
(25,829,713 |
) |
|
(14,362,828 |
) |
Provision for doubtful
accounts |
|
(266,732 |
) |
|
(2,483 |
) |
|
|
(266,732 |
) |
|
(2,483 |
) |
Gain on sale of vessel |
|
— |
|
|
— |
|
|
|
3,222,631 |
|
|
— |
|
Operating income |
$ |
35,943,941 |
|
$ |
30,546,613 |
|
|
$ |
126,779,813 |
|
$ |
55,519,085 |
|
Interest and finance costs,
net (including related party interest costs)(1) |
|
(1,946,031 |
) |
|
(1,062,469 |
) |
|
|
(7,025,951 |
) |
|
(2,779,875 |
) |
Other (expenses)/income,
net |
|
(17,793 |
) |
|
35,407 |
|
|
|
155,678 |
|
|
28,616 |
|
Income taxes |
|
(298,569 |
) |
|
(308,708 |
) |
|
|
(1,348,850 |
) |
|
(497,339 |
) |
Net income |
$ |
33,681,548 |
|
$ |
29,210,843 |
|
|
$ |
118,560,690 |
|
$ |
52,270,487 |
|
Less: Deemed dividend
on Series A preferred shares |
|
— |
|
|
(11,772,157 |
) |
|
|
— |
|
|
(11,772,157 |
) |
Net income attributable to common
shareholders |
|
33,681,548 |
|
|
17,438,686 |
|
|
|
118,560,690 |
|
|
40,498,330 |
|
Earnings per common
share (basic)(2) |
$ |
0.36 |
|
$ |
0.18 |
|
|
$ |
1.25 |
|
$ |
0.48 |
|
Earnings per common
share (diluted)(2) |
$ |
0.36 |
|
$ |
0.18 |
|
|
$ |
1.25 |
|
$ |
0.47 |
|
Weighted average number of
common shares outstanding, basic(2): |
|
94,610,088 |
|
|
94,610,088 |
|
|
|
94,610,088 |
|
|
83,923,435 |
|
Weighted average number of
common shares outstanding, diluted(2): |
|
94,610,088 |
|
|
94,610,088 |
|
|
|
94,610,088 |
|
|
85,332,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASTOR MARITIME INC.Unaudited Condensed
Consolidated Balance
Sheets(Expressed in U.S. Dollars—except for number
of share data)
|
|
December 31,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
142,373,151 |
|
$ |
37,173,736 |
|
Restricted cash |
|
1,684,269 |
|
|
2,382,732 |
|
Due from related parties |
|
2,995,682 |
|
|
— |
|
Other current assets |
|
19,188,164 |
|
|
15,443,620 |
|
Total current assets |
|
166,241,266 |
|
|
55,000,088 |
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
Vessels, net |
|
435,894,644 |
|
|
393,965,929 |
|
Advances for vessel
acquisition |
|
— |
|
|
2,368,165 |
|
Restricted cash |
|
8,250,000 |
|
|
3,830,000 |
|
Due from related parties |
|
5,222,572 |
|
|
810,437 |
|
Other non-currents assets |
|
17,312,466 |
|
|
6,938,823 |
|
Total non-current
assets |
|
466,679,682 |
|
|
407,913,354 |
|
Total assets |
|
632,920,948 |
|
|
462,913,442 |
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Current portion of long-term
debt, net |
|
31,777,117 |
|
|
16,091,723 |
|
Due to related parties |
|
— |
|
|
4,507,569 |
|
Other current liabilities |
|
19,584,652 |
|
|
13,430,104 |
|
Total current liabilities |
|
51,361,769 |
|
|
34,029,396 |
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
Long-term debt, net |
|
120,064,119 |
|
|
85,949,676 |
|
Total non-current
liabilities |
|
120,064,119 |
|
|
85,949,676 |
|
Total liabilities |
|
171,425,888 |
|
|
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 December 31, 2022 and 2021(2) |
|
94,610 |
|
|
94,610 |
|
Series B Preferred Shares-
12,000 shares issued and outstanding as at December 31, 2022 and
2021 |
|
12 |
|
|
12 |
|
Additional paid-in
capital |
|
303,658,153 |
|
|
303,658,153 |
|
Retained Earnings |
|
157,742,285 |
|
|
39,181,595 |
|
Total shareholders’ equity |
|
461,495,060 |
|
|
342,934,370 |
|
Total liabilities and shareholders’ equity |
$ |
632,920,948 |
|
$ |
462,913,442 |
|
|
|
|
|
|
|
|
CASTOR MARITIME
INC.Unaudited Consolidated Statements of Cash
Flows
(Expressed in U.S.
Dollars) |
Year Ended December 31, |
|
|
2022 |
|
2021 |
Cash flows provided by
Operating Activities: |
|
|
|
|
Net income |
$ |
118,560,690 |
|
$ |
52,270,487 |
|
Adjustments to
reconcile net income to net cash provided by Operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
25,829,713 |
|
|
14,362,828 |
|
Amortization of deferred
finance charges |
|
850,244 |
|
|
414,629 |
|
Amortization of fair value of
acquired time charters |
|
409,538 |
|
|
(1,940,000 |
) |
Gain on sale of vessel |
|
(3,222,631 |
) |
|
— |
|
Provision for doubtful
accounts |
|
266,732 |
|
|
2,483 |
|
Gain on sale of equity
securities |
|
(27,450 |
) |
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
Accounts receivable trade,
net |
|
(5,365,359 |
) |
|
(6,924,622 |
) |
Inventories |
|
1,603,621 |
|
|
(3,722,061 |
) |
Due from/to related
parties |
|
(11,915,386 |
) |
|
5,254,323 |
|
Prepaid expenses and other
assets |
|
(4,515,365 |
) |
|
(3,406,066 |
) |
Other deferred charges |
|
140,096 |
|
|
(191,234 |
) |
Accounts payable |
|
4,649,549 |
|
|
3,070,287 |
|
Accrued liabilities |
|
2,920,210 |
|
|
1,495,032 |
|
Deferred revenue |
|
(1,343,953 |
) |
|
3,819,708 |
|
Dry-dock costs paid |
|
(5,087,197 |
) |
|
(3,730,467 |
) |
Net cash provided by
Operating Activities |
|
123,753,052 |
|
|
60,775,327 |
|
|
|
|
|
|
Cash flows used in
Investing Activities: |
|
|
|
|
Vessel acquisitions (including
time charters acquired) and other vessel improvements |
|
(76,405,829 |
) |
|
(346,273,252 |
) |
Proceeds from vessel sale |
|
12,641,284 |
|
|
— |
|
Purchase of equity
securities |
|
(60,750 |
) |
|
— |
|
Sale of equity securities |
|
88,200 |
|
|
— |
|
Advances for vessel
acquisition |
|
— |
|
|
(2,367,455 |
) |
Net cash used in
Investing Activities |
|
(63,737,095 |
) |
|
(348,640,707 |
) |
|
|
|
|
|
Cash flows provided by
Financing Activities: |
|
|
|
|
Gross proceeds from issuance
of common stock and warrants |
|
— |
|
|
265,307,807 |
|
Common stock issuance
expenses |
|
(65,797 |
) |
|
(12,527,747 |
) |
Redemption of series A
preferred shares |
|
— |
|
|
(14,400,000 |
) |
Proceeds from long-term
debt |
|
77,500,000 |
|
|
97,190,000 |
|
Repayment of long-term
debt |
|
(27,543,000 |
) |
|
(6,878,500 |
) |
Repayment of related party
debt |
|
— |
|
|
(5,000,000 |
) |
Payment of deferred financing
costs |
|
(986,208 |
) |
|
(1,866,615 |
) |
Net cash provided by
Financing Activities |
|
48,904,995 |
|
|
321,824,945 |
|
|
|
|
|
|
Net increase in cash,
cash equivalents, and restricted cash |
|
108,920,952 |
|
|
33,959,565 |
|
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 |
$ |
152,307,420 |
|
$ |
43,386,468 |
|
(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 Time Charter (“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 vessel
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, whereas for vessels in a
pool, such expenses are handled by the pool operator. 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 employment (i.e., time charter,
voyage charter, pool agreement 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 Total vessel
revenues for the periods presented (amounts in U.S. dollars, except
for Available Days):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(In U.S. dollars, except for
Available Days) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Total vessel revenues |
$ |
69,321,426 |
|
$ |
60,010,788 |
|
|
$ |
262,101,998 |
|
$ |
132,049,710 |
|
Voyage expenses -including
commissions from related party |
|
(4,860,995 |
) |
|
(5,756,397 |
) |
|
|
(33,040,690 |
) |
|
(12,950,783 |
) |
TCE revenues |
$ |
64,460,431 |
|
$ |
54,254,391 |
|
|
$ |
229,061,308 |
|
$ |
119,098,927 |
|
Available Days |
|
2,522 |
|
|
2,433 |
|
|
|
10,212 |
|
|
6,657 |
|
Daily TCE Rate |
$ |
25,559 |
|
$ |
22,299 |
|
|
$ |
22,431 |
|
$ |
17,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
|
Year EndedDecember 31, |
(In U.S. dollars) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Net Income |
$ |
33,681,548 |
|
$ |
29,210,843 |
|
|
$ |
118,560,690 |
|
$ |
52,270,487 |
|
Depreciation and
amortization |
|
6,997,096 |
|
|
5,545,397 |
|
|
|
25,829,713 |
|
|
14,362,828 |
|
Interest and finance costs,
net (including related party interest costs)(1) |
|
1,946,031 |
|
|
1,062,469 |
|
|
|
7,025,951 |
|
|
2,779,875 |
|
US source income taxes |
|
298,569 |
|
|
308,708 |
|
|
|
1,348,850 |
|
|
497,339 |
|
EBITDA |
$ |
42,923,244 |
|
$ |
36,127,417 |
|
|
$ |
152,765,204 |
|
$ |
69,910,529 |
|
(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 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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