Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP)
(NASDAQ: SHIPW) announced today its operating results for the
second quarter and six month period ended June 30, 2009.
Six Months 2009 Financial Highlights:
-- Net Revenues of $48.3 million.
-- EBITDA of $37.6 million for the six months ended June 30, 2009. Please
refer to a subsequent section of the press release for a reconciliation of
EBITDA to net income.
-- Net Income of $19.3 million, or $0.86 per basic and $0.80 per diluted
share, based on weighted average common shares outstanding of 22,361,227,
basic, and 24,621,227 diluted.
-- Time Charter Equivalent, or TCE rate, of $51,982 per day.
-- The Company owns and operates a fleet of 6 vessels, with a fleet
utilization of 83.7%.
Second Quarter 2009 Financial Highlights:
-- Net Revenues of $22.1 million.
-- EBITDA of $16.3 million for the three months ended June 30, 2009.
Please refer to a subsequent section of the press release for a
reconciliation of EBITDA to net income.
-- Net Income of $7.2 million, or $0.32 per basic and $0.30 per diluted
share, based on weighted average common shares outstanding of 22,361,227,
basic, and 24,621,227 diluted.
-- Time Charter Equivalent, or TCE rate, of $52,292 per day.
-- Fleet utilization reached 75.3%.
Dale Ploughman, the Company's Chief Executive Officer, stated:
"Our operating results for the second quarter of 2009, although
below our expectations due to the extended drydocking period were
none the less satisfactory and supported by a time charter
equivalent rate of $52,292 per day. So far in 2009, we believe
Seanergy's management has met the challenge of delivering a strong
bottom line despite the fact that we operate in a highly volatile
environment. We also achieved our objective to grow our fleet
within our first year of operations.
"We strongly believe that our planned acquisition of a
controlling interest in Bulk Energy Transport will strengthen
Seanergy's position in the dry bulk sector and enhance shareholder
value. This deal is accretive to shareholder value and enables
Seanergy to expand its controlled fleet and revenue generation
capability, while maintaining a strong balance sheet.
"We believe that opportunities to acquire distressed assets will
continue to present themselves and Seanergy is well placed to take
advantage of them.
"We have entered into long term charter agreements for our handy
and our panamax vessels securing stable and visible cash flows with
the added incentive of sharing into the potential market upside
which can further enhance our revenues and profitability.
"Even though the dry bulk market has considerably improved since
the beginning of 2009, we believe we will continue experiencing a
volatile market for the remainder of 2009. On the demand side,
freight rates are recovering sooner than expected due to China's
strong demand for major core commodities iron ore and coal. On the
supply side, we experience newbuilding order cancellations and
delivery delays, which are expected to have a positive impact on
the demand supply balance.
"Although we remain cautiously optimistic on the outlook for
demand for dry bulk commodities, we continue to believe that the
long term prospects remain favorable as the world begins to recover
from the economic and credit crisis."
Christina Anagnostara, the Company's Chief Financial Officer,
stated: "In a challenging economic environment, Seanergy delivered
strong results for the six months ended June 30, 2009. As of today,
we enjoy healthy cash reserves of $50 million which enable us to
meet scheduled debt repayments and capital expenditures and afford
us the ability to grow our fleet, as indicated by our agreement to
acquire a controlling interest in Bulk Energy Transport
Holdings.
"The Hamburg Max and African Zebra completed their scheduled
drydockings on June 23, 2009 and July 20, 2009.
"With a time charter equivalent rate of $51,982 per day for the
six months ended June 30, 2009, our net income margin was
approximately 50% of TCE and our free cash flow margin was
approximately 73% of TCE."
Acquisition of Bulk Energy Transport (Holdings) Limited:
Seanergy Maritime Holdings Corp. announced on July 15, 2009 that
it had entered into an agreement with Constellation Bulk Energy
Holdings, Inc. to purchase a 50% ownership interest in Bulk Energy
Transport (Holdings) Limited ("BET") for nominal cash
consideration.
As a result of the acquisition, the size of the Company's
controlled fleet will increase to 11 dry bulk vessels with a carry
capacity of approximately 1,043,296 dwt and an average fleet age of
13 years comprising of four Capesize, three Panamax, two Supramax
and two Handysize dry bulk carriers.
The acquisition is subject to lenders' consent, and was expected
to close before the end of July 2009. However, on July 29, 2009 the
involved parties mutually agreed to extend the closing date to
August 31, 2009.
Conference Call Details:
The Company's management team will host a conference call to
discuss the financial results tomorrow, Friday, July 31, 2009 at
9:00 A.M. EDT.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1(866) 819-7111 (from
the US), 0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301
(from outside the US). Please quote "Seanergy."
A replay of the conference call will be available until August
8, 2009. The United States replay number is 1(866) 247-4222; from
the UK 0(800) 953-1533; the standard international replay number is
(+44) (0) 1452 550 000 and the access code required for the replay
is: 2094507#.
Slides and Audio Webcast:
There will also be a simultaneous live webcast over the
Internet, through the Seanergy website (www.seanergymaritime.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
Fleet Profile as of July 30, 2009 (excluding BET fleet)
Time
Charter
Vessel Capacity Year TC Rate Expiry
Vessel Name Class (DWT) Built Delivery Date ($) (latest)
---------- ------- ------ -------------- ---------- ----------
M/V Bremen
Max Panamax 73,503 1993 Sept. 11, 2008 15,500(*) Aug. 2010
---------- ------- ------ -------------- ---------- ----------
M/V Hamburg
Max Panamax 72,338 1994 Sept. 25, 2008 65,000(*) Aug. 2009
---------- ------- ------ -------------- ---------- ----------
M/V Davakis
G. Supramax 54,051 2008 Aug. 28, 2008 60,000 Sept. 2009
---------- ------- ------ -------------- ---------- ----------
M/V Delos
Ranger Supramax 54,051 2008 Aug. 28, 2008 60,000 Sept. 2009
---------- ------- ------ -------------- ---------- ----------
M/V African
Zebra Handysize 38,623 1985 Sept. 25, 2008 7,500 (**) Aug. 2011
---------- ------- ------ -------------- ---------- ----------
M/V African
Oryx Handysize 24,110 1997 Aug. 28, 2008 7,000 (**) Aug. 2011
---------- ------- ------ -------------- ---------- ----------
Total/
Average 316,676 11 yrs
---------- ------- ------ -------------- ---------- ----------
(*) the Company has extended its time charter contracts with the
current charterer SAMC in direct continuation for its two Panamax
vessels dry bulk carriers, at a rate of $15,500 per day, for a
period of about eleven (11) to (13) months. The m/v Bremen Max
charter commenced on July 27, 2009 and the m/v Hambourg Max charter
will commence on August 12, 2009.
(**) represents gross floor charter rates excluding a 50%
adjusted profit share to be distributed equally between owners and
charterers calculated on the average spot Time Charter Routes
quoted on the Baltic Supramax Index for a period of twenty two (22)
to twenty five (25) months.
Fleet Data:
We commenced our operating activity on August 28, 2008,
therefore comparative information for the first six months of 2008
and the three months ended June 30, 2008 is not available.
Six Months Three Months
Ended June 30, Ended June 30,
2009 2009
------------- -------------
Fleet Data:
Average Number of Vessels (1) 6.0 6.0
------------- -------------
Ownership days (2) 1,086 546
------------- -------------
Available days (3) 916 417
------------- -------------
Operating days (4) 909 411
------------- -------------
Fleet utilization (5) 83.7% 75.3%
------------- -------------
Average Daily Results:
------------- -------------
TCE rate (6) 51,982 52,292
------------- -------------
Vessel operating expenses (7) 5,360 5,513
------------- -------------
Management fee (8) 568 577
------------- -------------
Total vessel operating expenses (9) 5,928 6,090
------------- -------------
(1) Average number of vessels is the number of vessels that
constituted the Company's fleet for the relevant period, as
measured by the sum of the number of days each vessel was a part of
the Company's fleet during the relevant period divided by the
number of calendar days in the relevant period.
(2) Ownership days are the total number of days in a period
during which the vessels in a fleet have been owned. Ownership days
are an indicator of the size of the Company's fleet over a period
and affect both the amount of revenues and the amount of expenses
that the Company recorded during a period.
(3) Available days are the number of ownership days less the
aggregate number of days that vessels are off-hire due to major
repairs, dry dockings or special or intermediate surveys. The
shipping industry uses available days to measure the number of
ownership days in a period during which vessels should be capable
of generating revenues. During the six months ended June 30, 2009,
the Company incurred 170 off hire days for vessel scheduled
drydocking. During the three months ended June 30, 2009, the
Company incurred 129 off hire days for vessel scheduled
drydocking.
(4) Operating days are the number of available days in a period
less the aggregate number of days that vessels are off-hire due to
any reason, including unforeseen circumstances. The shipping
industry uses operating days to measure the aggregate number of
days in a period during which vessels actually generate
revenues.
(5) Fleet utilization is the percentage of time that our vessels
were generating revenue, and is determined by dividing operating
days by ownership days for the relevant period.
(6) Time charter equivalent or TCE rates are defined as our time
charter revenues less voyage expenses during a period divided by
the number of our operating days during the period, which is
consistent with industry standards. Voyage expenses include port
charges, bunker (fuel oil and diesel oil) expenses, canal charges
and commissions.
(In thousands of US Dollars, except daily time charter equivalent rate)
Six Months Ended Three Months Ended
June 30, 2009 June 30, 2009
--------------- ---------------
Net Revenues from vessels 48,309 22,067
Voyage expenses (1,057) (575)
Net Operating Revenues 47,252 21,492
=============== ===============
Operating Days 909 411
Daily Time charter equivalent rate 51,982 52,292
(7) Average daily vessel operating expenses, which include crew
costs, provisions, deck and engine stores, lubricating oil,
insurance, maintenance and repairs, are calculated by dividing
vessel operating expenses by ownership days for the relevant time
periods:
(In thousands of US Dollars, except daily vessel operating expenses)
Six Months Ended Three Months Ended
June 30, 2009 June 30, 2009
--------------- ---------------
Operating expenses 5,821 3,010
Ownership days 1,086 546
Daily vessel operating expenses 5,360 5,513
(8) Daily management fees are calculated by dividing total
management fees by ownership days for the relevant time period.
(9) Total vessel operating expenses or TVOE is a measurement of
total expenses associated with operating the vessels. TVOE is the
sum of vessel operating expenses and management fees. Daily TVOE is
calculated by dividing TVOE by fleet ownership days for the
relevant time period.
FINANCIAL DATA
(In thousands of US Dollars, except share and per share data)
Six Months Three Months
Ended Ended
June 30, June 30,
2009 2009
---------- ----------
Revenues:
Vessel revenue - related party 49,548 22,633
Commissions - related party (1,239) (566)
Vessel revenue - related party, net 48,309 22,067
Expenses:
Direct voyage expenses (438) (292)
Vessel operating expenses (5,821) (3,010)
Voyage expenses - related party (619) (283)
Management fees - related party (617) (315)
General and administration expenses (2,141) (1,283)
General and administration expenses - related party (1,021) (481)
Depreciation (15,430) (7,758)
Amortization of deferred drydocking costs (9) (9)
Operating (Income)/Loss 22,213 8,636
Other expenses:
Interest and finance costs (2,819) (1,355)
Interest and finance costs - shareholders (312) (173)
Interest income - money market funds 256 116
Foreign currency exchange gains (losses), net (55) (56)
Net Income 19,283 7,168
Net Income per common share
Basic 0.86 0.32
Diluted 0.80 0.30
Weighted average common shares outstanding
Basic 22,361,227 22,361,227
Diluted 24,621,227 24,621,227
Six Months Three Months
Ended Ended
June 30, June 30,
2009 2009
---------- ----------
Net cash from operating activities 34,500 14,285
Net cash used in investing activities (21) (1)
Net cash from/(used in) financing activities (15,000) (7,500)
Net increase in cash 19,479 6,784
Drydocking Schedule:
On February 24, 2009 the African Zebra commenced its scheduled
dry docking which was completed on July 20, 2009. The delay was due
to labor strikes in the repairing yard and other unforeseen events
in the repairing yard.
The Hamburg Max commenced its scheduled dry docking on May 17,
2009, which was completed on June 23, 2009.
Other Matters:
We are presently under active negotiations with our lender on an
extension to be granted on our market value to loan covenant
waiver, subject to the review of new charterparty agreements. Our
lender has indicated its willingness to extend this waiver, which
recently expired, until July 1, 2010.
We expect the extension of this waiver to be granted, thus the
presentation of our long term debt in the attached financial
statements assumes that the extension of this waiver will be
granted and accordingly, substantially all of our long-term debt
continues to be classified as non-current as of June 30, 2009.
To the extent that we are unable to obtain this waiver, any
long-term debt for which we have been unable to secure a market
value to loan covenant waiver will be required to be classified as
current, reflecting our lender's ability to call that debt at any
time at their option.
Background Information:
Seanergy Maritime Holdings Corp. commenced operations on August
28, 2008 following shareholder approval on August 26, 2008 for its
business combination including the acquisition of six drybulk
carriers from the Restis family. On August 28, 2008, the
shareholders of Seanergy Maritime Holdings Corp. also approved the
dissolution and liquidation of Seanergy Maritime Corp., which
became effective on January 27, 2009.
The consolidated financial statements included in this release
are for the six months ended June 30, 2009 and include the accounts
of Seanergy Maritime Holdings Corp. and its acquired wholly owned
subsidiaries, as well as Seanergy Maritime Corp., the Company's
predecessor. We commenced our operating activity on August 28,
2008, therefore comparative operating information for the first six
months of 2008 is not available.
Seanergy Maritime Corp. was incorporated in the Marshall Islands
on August 15, 2006, originally under the name Seanergy Maritime
Acquisition Corp., as a blank check company formed to acquire,
through a merger, capital stock exchange, asset acquisition or
other similar business combination, one or more businesses in the
maritime shipping industry or related industries.
Seanergy Maritime Holdings Corp.
Reconciliation of Net Income to EBITDA
(All amounts expressed in thousand U.S. Dollars)
Six Months Three Months
Ended Ended
June 30, June 30,
2009 2009
---------- ----------
Net income 19,283 7,167
----------- -----------
Interest and finance costs, net (including
interest income) 2,875 1,411
----------- -----------
Depreciation & amortization 15,439 7,767
----------- -----------
EBITDA 37,597 16,345
=========== ===========
Seanergy Maritime Holdings Corp.
Reconciliation of Net Cash provided by operating activities to EBITDA
(All amounts expressed in thousand U.S. Dollars)
Six Months Three Months
Ended Ended
June 30, June 30,
2009 2009
---------- ----------
Net cash flow provided by operating activities 34,500 14,284
---------- ----------
Changes in operating assets and liabilities (1,635) (1,408)
---------- ----------
Changes in Capital Expenditures (Drydocking) 2,245 2,231
---------- ----------
Amortization of Deferred Charges (388) (173)
---------- ----------
Interest and finance costs, net (includes interest
income) 2,875 1,411
---------- ----------
EBITDA 37,597 16,345
=========== ===========
EBITDA consists of earnings before interest and finance cost,
taxes and depreciation. EBITDA is not a measurement of financial
performance under accounting principles generally accepted in the
United States of America, and does not represent cash flow from
operations. EBITDA is presented solely as a supplemental disclosure
because management believes that it is a common measure of
operating performance in the shipping industry.
Seanergy Maritime Holdings Corp. and subsidiaries
Condensed Consolidated Balance Sheets
June 30, 2009 and December 31, 2008
(In thousands of US Dollars, except for share and per share data, unless
otherwise stated)
(Unaudited)
June 30, December 31,
2009 2008
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents 47,022 27,543
Advances (trade) to related party - 577
Inventories 696 872
Prepaid insurance expenses 185 574
Prepaid expenses and other current assets - related
parties 268 248
Other current assets 27 -
---------- ----------
Total current assets 48,198 29,814
---------- ----------
Fixed assets:
Vessels, net 330,202 345,622
Office equipment, net 20 9
---------- ----------
Total fixed assets 330,222 345,631
---------- ----------
Other assets
Deferred charges 4,605 2,757
---------- ----------
TOTAL ASSETS 383,025 378,202
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt 23,250 27,750
Trade accounts and other payables 465 674
Due to related parties 218 -
Due to underwriters 133 419
Accrued expenses 1,864 541
Accrued interest 112 166
Deferred revenue - related party 2,347 3,029
---------- ----------
Total current liabilities 28,389 32,579
---------- ----------
Long-term debt, net of current portion 174,095 184,595
Accrued charges on convertible promissory note due
to shareholders 983 420
Convertible promissory note due to shareholders 28,710 29,043
---------- ----------
Total liabilities 232,177 246,637
---------- ----------
Consolidated shareholders' equity
Preferred stock, $0.0001 par value; 1,000,000
shares authorized; none issued - -
Common stock, $ 0.0001 par value; 100,000,000 and
89,000,000 authorized shares as at June 30, 2009
and December 31, 2008, respectively; 22,361,227
shares, issued and outstanding as at June 30, 2009
and December 31, 2008, respectively 2 2
Additional paid-in capital 166,361 166,361
Accumulated deficit (15,515) (34,798)
---------- ----------
Total consolidated shareholders' equity 150,848 131,565
---------- ----------
Commitments and contingencies - -
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 383,025 378,202
========== ==========
Seanergy Maritime Holdings Corp. and subsidiaries
Condensed Consolidated Statements of Operations
For the six months ended June 30, 2009 and 2008
(In thousands of US Dollars, except for share and per share data, unless
otherwise stated)
(Unaudited)
Six months ended
June 30,
2009 2008
Revenues:
Vessel revenue - related party 49,548 -
Commissions - related party (1,239) -
---------- ----------
Vessel revenue - related party, net 48,309 -
---------- ----------
Expenses:
Direct voyage expenses (438) -
Vessel operating expenses (5,821)
Voyage expenses - related party (619) -
Management fees - related party (617) -
General and administration expenses (2,141) (597)
General and administration expenses - related
party (1,021) -
Amortization of deferred dry-docking costs (9)
Depreciation (15,430) -
---------- ----------
Operating income (loss) 22,213 (597)
Other income (expense), net:
Interest and finance costs (2,819) -
Interest and finance costs - shareholders (312) -
Interest income - money market funds 256 2,612
Foreign currency exchange gains (losses), net (55) -
---------- ----------
(2,930) 2,612
---------- ----------
Net income 19,283 2,015
========== ==========
Net income per common share
Basic 0.86 0.07
========== ==========
Diluted 0.80 0.05
========== ==========
Weighted average common shares outstanding
Basic 22,361,227 28,600,000
========== ==========
Diluted 24,621,227 40,867,846
========== ==========
Seanergy Maritime Holdings Corp. and subsidiaries
Condensed Consolidated Statements of Shareholders' Equity
For the six months ended June 30, 2009
(In thousands of US Dollars, except for share and per share data, unless
otherwise stated)
(Unaudited)
Common stock Total
--------------------- Additional share-
# of paid-in Accumulated holders'
Shares Par value capital deficit Equity
---------- ---------- ---------- --------- ----------
Balance December 31,
2008 22,361,227 2 166,361 (34,798) 131,565
Net income for the
six months ended
June 30, 2009 - - - 19,283 19,283
---------- ---------- ---------- --------- ----------
Balance June 30,
2009 22,361,227 2 166,361 (15,515) 150,848
========== ========== ========== ========= ==========
Seanergy Maritime Holdings Corp. and subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2009 and 2008
(In thousands of US Dollars, except for share and per share data, unless
otherwise stated)
(Unaudited)
Six months ended
June 30,
2009 2008
---------- ----------
Cash flows from operating activities:
Net income 19,283 2,015
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation 15,430 -
Deferred dry-docking costs (2,245)
Amortization of deferred finance charges and
dry-dock 397 -
Changes in operating assets and liabilities:
(Increase) decrease in -
Advances (trade) to related party 795 -
Inventories 176 -
Trade accounts and other receivables (27) -
Prepaid insurance expenses 389 -
Prepaid expenses and other current assets -
related parties (20) -
Prepaid expenses and other current assets - 52
Accrued expenses 1,323 -
Trade accounts and other payables (209) (212)
Due to underwriters (286) -
Accrued charges on convertible note due to
shareholders 411 -
Premium amortization on convertible note due to
shareholders (181) -
Accrued interest (54) -
Deferred revenue - related party (682) -
---------- ----------
Net cash provided by operating activities 34,500 1,855
---------- ----------
Cash flows from investing activities:
Increase in trust account from interest earned on
funds held in trust - (3,670)
Withdrawals from trust account - 4,501
Payment of acquisition costs - (321)
Additions to vessels (6)
Additions to office furniture and equipment (15) -
---------- ----------
Net cash provided by investing activities (21) 510
---------- ----------
Cash flows from financing activities:
Dividends paid - (3,173)
Repayment of long term debt (15,000) -
---------- ----------
Net cash used in financing activities (15,000) (3,173)
---------- ----------
Net increase (decrease) in cash 19,479 (808)
Cash and cash equivalents at beginning of period 27,543 2,211
---------- ----------
Cash and cash equivalents at end of period 47,022 1,403
========== ==========
Cash paid for:
Interest 2,501 -
========== ==========
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp., the successor to Seanergy
Maritime Corp., is a Marshall Islands corporation with its
executive offices in Athens, Greece. The Company is engaged in the
transportation of dry bulk cargoes through the ownership and
operation of dry bulk carriers. The Company purchased and took
delivery of six dry bulk carriers in the third and fourth quarters
of 2008 from companies associated with members of the Restis
family. Its current fleet is comprised of two Panamax, two Supramax
and two Handysize dry bulk carriers with a combined cargo-carrying
capacity of 316,676 dwt and an average fleet age of approximately
11 years.
The Company's common stock and warrants trade on the NASDAQ
Global Market under the symbols SHIP and SHIP.W, respectively.
Prior to October 15, 2008, the Company's common stock and warrants
traded on the NYSE Alternext US LLC (formally known as AMEX) under
the symbols SRG, SRG.W, respectively.
For further information please visit our website at
www.seanergymaritime.com
Forward-Looking Statements
This press release contains forward-looking statements (as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events and the Company's growth strategy and
measures to implement such strategy. Words such as "expects,"
"intends," "plans," "believes," "anticipates," "hopes,"
"estimates," and variations of such words and similar expressions
are intended to identify forward-looking statements. Although the
Company believes that such expectations will prove to have been
correct, these statements involve known and unknown risks and are
based upon a number of assumptions and estimates, which are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of the Company. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, competitive
factors in the market in which the Company operates; risks
associated with operations outside the United States; and other
factors listed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company's filings can be
obtained free of charge on the SEC's website at www.sec.gov. The
Company expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
For further information please contact: Seanergy Maritime
Holdings Corp. Dale Ploughman Chief Executive Officer Tel: +30 210
9638461 E-mail: ir@seanergymaritime.com Investor Relations / Media
Capital Link, Inc. Paul Lampoutis 230 Park Avenue Suite 1536 New
York, NY 10169 Tel. (212) 661-7566 E-mail:
seanergy@capitallink.com
Seanergy Maritime (NASDAQ:SHIPW)
Historical Stock Chart
From May 2024 to Jun 2024
Seanergy Maritime (NASDAQ:SHIPW)
Historical Stock Chart
From Jun 2023 to Jun 2024
