Castor Maritime Inc. (NASDAQ: CTRM) (“Castor” or the “Company”), a
diversified global shipping company, today announced its results
for the three months and six months ended June 30, 2022.
Highlights of the Second Quarter Ended
June 30, 2022:
- Revenues, net: $67.5
million for the three months ended June 30, 2022, as compared to
$21.8 million for the three months ended June 30, 2021, or a 209.6%
increase;
- Net income: $27.8 million
for the three months ended June 30, 2022, as compared to $6.5
million for the three months ended June 30, 2021, or a 327.7%
increase;
- Earnings per common share:
$0.29 earnings per share for the three months ended June 30, 2022,
as compared to earnings per share of $0.07 for the three months
ended June 30, 2021;
-
EBITDA(1):
$36.0 million for the three months ended June 30, 2022, as compared
to $10.0 million for the three months ended June 30,
2021;
- Cash and restricted cash of
$115.3 million as of June 30, 2022, as compared to $43.4 million as
of December 31, 2021; and
- Delivery of the
M/T Wonder Arcturus to its new owners on
July 15, 2022, after entering into an agreement to sell the vessel
on May 9, 2022 for $13.15 million, resulting in an expected capital
gain of $3.7 million before expenses in the third quarter of
2022.
Earnings Highlights of the Six Months
Ended June 30, 2022:
- Revenues, net: $122.1
million for the six months ended June 30, 2022, as compared to
$28.8 million for the six months ended June 30, 2021, or a 324.0%
increase;
- Net income: Net income of
$47.7 million for the six months ended June 30, 2022, as compared
to net income of $7.6 million for the six months ended June 30,
2021, or a 527.6% increase;
- Earnings per common share:
$0.50 earnings per share for the six months ended June 30, 2022, as
compared to earnings per share of $0.10 for the six months ended
June 30, 2021; and
-
EBITDA(1):
$63.9 million for the six months ended June 30, 2022, as compared
to $12.6 million for the six months ended June 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 second quarter of 2022, we enjoyed the
improvement of the Aframax and Handysize tanker segments earnings
along with another robust quarter in the dry cargo market, with the
result of Castor reporting a record net income of approximately $28
million. Our balance sheet is strong with a healthy liquidity
position and low leverage. As of June 30, 2022, our free cash was
approximately $104 million, which compares with total assets of
$552.4 million and the Company’s market capitalization of
approximately $126.8 million as of end of the first half of 2022.
We continue to generate healthy cash flows, with $52.8 million of
cash generated from our operations in the first half of 2022.
We did not sell any common shares under the ATM
Program, which expired in June 2022, during the second quarter of
2022 and up to the date of this release. We will continue to seek
attractive acquisition opportunities across the shipping space to
further pursue Castor’s growth trajectory.”
Earnings Commentary:
Second Quarter ended June 30, 2022, and
2021 Results
Vessel revenues, net of charterers’ commissions,
for the three months ended June 30, 2022, increased to $67.5
million from $21.8 million in the same period of 2021. This
increase was largely driven by the increase in our Available Days
(defined below) from 1,420 in the three months ended June 30, 2021,
to 2,565 in the three months ended June 30, 2022, following the
increase in the size of our fleet. The increase in vessel revenues
during the three months ended June 30, 2022, as compared with the
same period of 2021, was further underpinned by the continuing
solid performance of the dry bulk shipping market and the improved
Aframax and Handysize tanker vessel earnings as compared to the
same period of 2021.
The increase in voyage expenses, to $11.8
million in the three months ended June 30, 2022, from $1.4 million
in the same period of 2021, is mainly associated with the expansion
of our tanker fleet. The expansion of our tanker fleet resulted in:
(i) increased bunkers consumption and port expenses during the
three months ended June 30, 2022, as our larger tanker fleet
operated mostly under voyage charters (under which we bear such
expenses) during the three months ended June 30, 2022, compared to
the three months ended June 30, 2021 when our tankers were
primarily employed under time charter contracts (under which case
such expenses are borne by our charterers), and (ii) increased
brokerage commission expenses, corresponding to the increase in
vessel revenues discussed above.
The increase in vessel operating expenses by
$8.4 million, from $8.0 million in the three months ended June 30,
2021 to $16.4 million in the same period of 2022, as well as the
increase in vessels’ depreciation and amortization costs by $3.1
million, from $3.0 million in the three months ended June 30, 2021
to $6.1 million in the same period of 2022, mainly reflect the
increase in our Ownership Days following the expansion of our fleet
and increased maintenance and insurance costs for certain of our
vessels.
General and administrative expenses in the three
months ended June 30, 2022, amounted to $1.1 million, whereas, in
the same period of 2021 general and administrative expenses totaled
$0.7 million. This increase stemmed from higher corporate fees
primarily due to the growth of our company.
Management fees in the three months ended June
30, 2022, amounted to $2.2 million, whereas, in the same period of
2021 management fees totaled $1.8 million. This increase in
management fees is due to the substantial increase in our Ownership
Days for which our managers charge us with a daily management fee,
following the acquisitions discussed above.
During the three months ended June 30, 2022, we
incurred net interest costs and finance costs amounting to $1.7
million compared to $0.5 million during the same period in 2021.
The increase is due to our higher level of weighted average
indebtedness during the three months ended June 30, 2022, as
compared with the same period of 2021.
Recent Financial and
Business Developments Commentary:
Equity update
On June 15, 2022, the amended and restated
equity distribution agreement with the agent under our
at-the-market common stock offering program (“ATM Program”)
expired. From January 1, 2022 to date, no sales of common shares
took place under the ATM Program and there have been no warrant
exercises under our outstanding warrant schemes. As of August 5,
2022, we had issued and outstanding 94,610,088 common shares.
Liquidity/ Financing/ Cash flow
update
Our consolidated cash position as of June 30,
2022, increased by $71.9 million, to $115.3 million, as compared
with our cash position on December 31, 2021. During the six-month
period ended June 30, 2022, our cash position improved mainly as a
result of: (i) $52.8 million of net operating cash flows generated,
and (ii) net financing cash inflows of approximately $54.3 million
following our entry into one secured loan facility in January 2022.
From these amounts, during the six months ended June 30, 2022, we
used $23.1 million to fund the acquisition of the M/V Magic
Callisto and other capital expenditures of our fleet, whereas $12.1
million were used for scheduled principal repayments of our
debt.
As of June 30, 2022, our total debt, gross of
unamortized deferred loan fees, was $146.7 million of which $30.3
million is repayable within one year, as compared to $103.8 million
of gross total debt as of December 31, 2021.
Completion of sale of the
M/T Wonder Arcturus
On July 15, 2022, we completed the previously
announced sale of the M/T Wonder Arcturus by delivering the vessel
to its new owners. The Company expects to record during the third
quarter of 2022 a gain on the sale of the subject vessel of
approximately $3.7 million, excluding any transaction related
costs.
Fleet Employment Status (as of August 5,
2022) During the three months ended June 30, 2022, we
operated on average 29.0 vessels earning a Daily TCE Rate of
$21,705 as compared to an average 16.2 vessels earning a Daily TCE
Rate of $14,381 during the same period in 2021. Our current
employment profile is presented 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 |
100% 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 |
$27,350(4) |
Sep-23 |
Dec-23 |
Magic Starlight |
Kamsarmax |
81,048 |
2015 |
China |
TC period |
$32,000 (5) |
Sep-22 |
Mar-23 |
Magic Twilight |
Kamsarmax |
80,283 |
2010 |
Korea |
TC period |
$27,150(6) |
Jan-23 |
Apr-23 |
Magic Nebula |
Kamsarmax |
80,281 |
2010 |
Korea |
TC period |
$23,500 |
Sep-22 |
Nov -22 |
Magic Nova |
Panamax |
78,833 |
2010 |
Japan |
TC period |
$25,300 (7) |
Oct-22 |
Feb-23 |
Magic Mars |
Panamax |
76,822 |
2014 |
Korea |
TC period |
$21,500 (8) |
Νοv-22 |
Feb-23 |
Magic Phoenix |
Panamax |
76,636 |
2008 |
Japan |
TC period |
$28,100 (9) |
Aug-23 |
Nov-23 |
Magic Horizon |
Panamax |
76,619 |
2010 |
Japan |
TC period |
103% of BPI4TC |
Jun-23 |
Sep-23 |
Magic Moon |
Panamax |
76,602 |
2005 |
Japan |
TC period |
$19,000(10) |
Apr-23 |
Jul-23 |
Magic P |
Panamax |
76,453 |
2004 |
Japan |
TC period |
$25,000 |
Sep-22 |
Oct-22 |
Magic Sun |
Panamax |
75,311 |
2001 |
Korea |
TC trip |
$23,000 |
Aug-22 |
Aug-22 |
Magic Vela |
Panamax |
75,003 |
2011 |
China |
TC period |
$26,700(11) |
Apr-23 |
Jul-23 |
Magic Eclipse |
Panamax |
74,940 |
2011 |
Japan |
TC period |
$22,000(12) |
Mar-23 |
Jun-23 |
Magic Pluto |
Panamax |
74,940 |
2013 |
Japan |
TC period |
$24,000 (13) |
Nov-22 |
Feb-23 |
Magic Callisto |
Panamax |
74,930 |
2012 |
Japan |
TC period |
$27,000 (14) |
Jul-23 |
Oct-23 |
Magic Rainbow |
Panamax |
73,593 |
2007 |
China |
TC trip |
$16,000 |
Aug-22 |
Aug-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 |
Voyage |
$49,500 (15) |
8-Aug (16) |
N/A |
Wonder Sirius |
Aframax / LR2 |
115,341 |
2005 |
Korea |
TC period |
$22,000 |
Aug-22 |
Sep-22 |
Wonder Bellatrix |
Aframax / LR2 |
115,341 |
2006 |
Korea |
Voyage |
$26,500(15) |
10-Aug-22 (16) |
N/A |
Wonder Musica |
Aframax / LR2 |
106,290 |
2004 |
Korea |
Unfixed |
N/A |
N/A |
N/A |
Wonder Avior |
Aframax / LR2 |
106,162 |
2004 |
Korea |
TC period |
$35,000 |
Sep-22 |
Oct-22 |
Wonder Vega |
Aframax |
106,062 |
2005 |
Korea |
Tanker Pool (17) |
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 (18) |
N/A |
N/A |
N/A |
Wonder Formosa |
Handysize |
36,660 |
2006 |
Korea |
Tanker Pool (18) |
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 180,000mt dwt vessel (Capesize) with
specific age, speed – consumption, and design characteristics. |
(4) |
The vessel’s daily gross charter rate is equal to 100% of BPI5TC.
In accordance with the prevailing charter party, on June 17, 2022
the owners converted the index-linked rate to fixed from July 1,
2022 until September 30, 2022, at a rate of $27,350 per day. Upon
completion of this period, the rate will be converted back to
index-linked. |
(5) |
The vessel’s daily gross charter rate is equal to 114% of the
Baltic Panamax Index 4TC routes (“BPI4TC”). In accordance with the
prevailing charter party, on October 16, 2021 the owners converted
the index-linked rate to fixed from January 1, 2022 until September
30, 2022, at a rate of $32,000 per day. Upon completion of said
period, the rate will be converted back to index-linked. 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 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. |
(7) |
The vessel’s daily gross charter rate is equal to 92% of BPI5TC. In
accordance with the prevailing charter party, on February 17, 2022
the owners converted the index-linked rate to fixed from March 1,
2022 until September 30, 2022, at a rate of $25,300 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 91% of BPI5TC. In
accordance with the prevailing charter party, on January 20, 2022
the owners converted the index-linked rate to fixed from February
1, 2022 until September 30, 2022, at a rate of $21,500 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 102% of BPI4TC.
In accordance with the prevailing charter party, on March 3, 2022
the owners converted the index-linked rate to fixed from April 1,
2022 until September 30, 2022, at a rate of $28,100 per day, and 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 these periods, the rate will be
converted back to index-linked. |
(10) |
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. |
(11) |
The vessel’s daily gross charter rate is equal to 87.5% of BPI5TC.
In accordance with the prevailing charter party, on May 5, 2022 the
owners converted the index-linked rate to fixed from June 1, 2022
until September 30, 2022, at a rate of $26,700 per day, and 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. |
(12) |
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 3, 2023, at a rate of $22,000 per day. Upon completion
of this period, the rate will be converted back to
index-linked. |
(13) |
The vessel’s daily gross charter rate is equal to 91% of BPI5TC. In
accordance with the prevailing charter party, on February 8, 2022
the owners converted the index-linked rate to fixed from March 1,
2022 until September 30, 2022, at a rate of $24,000 per day. Upon
completion of this period, the rate will be converted back to
index-linked. |
(14) |
The vessel’s daily gross charter rate is equal to 101% of BPI4TC.
In accordance with the prevailing charter party, on February 22,
2022 the owners converted the index-linked rate to fixed from March
1, 2022 until September 30, 2022, at a rate of $27,000 per day.
Upon completion of this period, the rate will be converted back to
index-linked |
(15) |
For vessels that are employed on the voyage/spot market, the gross
daily charter rate is considered as the Daily TCE Rate on the basis
of the expected completion date. |
(16) |
Estimated completion date of voyage. |
(17) |
The vessel is currently participating in an unaffiliated tanker
pool specializing in the employment of Aframax tanker vessels. |
(18) |
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 six months ended June 30, 2022 and 2021,
respectively:
|
Three Months Ended |
|
|
Six Months Ended |
(Expressed in U.S. dollars) |
|
June 30, 2022(unaudited) |
|
June 30, 2021(unaudited) |
|
|
June 30, 2022(unaudited) |
|
June 30, 2021(unaudited) |
Vessel revenues, net |
$ |
67,497,666 |
$ |
21,789,783 |
|
$ |
122,138,979 |
$ |
28,762,636 |
Operating income |
$ |
29,840,786 |
$ |
7,038,253 |
|
$ |
51,665,197 |
$ |
8,529,692 |
Net income |
$ |
27,753,496 |
$ |
6,475,508 |
|
$ |
47,729,784 |
$ |
7,602,568 |
EBITDA (1) |
$ |
36,002,251 |
$ |
9,987,330 |
|
$ |
63,907,202 |
$ |
12,558,054 |
Earnings per common share |
$ |
0.29 |
$ |
0.07 |
|
$ |
0.50 |
$ |
0.10 |
(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 six months
ended June 30, 2022 and 2021, respectively, that we believe are
useful in analyzing trends in our results of operations:
(Expressed in U.S. dollars except for operational
data) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Ownership Days (1) (7) |
|
2,639 |
|
|
1,477 |
|
|
|
5,245 |
|
|
2,105 |
|
Available Days (2)(7) |
|
2,565 |
|
|
1,420 |
|
|
|
5,171 |
|
|
2,035 |
|
Operating Days (3) (7) |
|
2,536 |
|
|
1,397 |
|
|
|
5,120 |
|
|
2,000 |
|
Daily TCE rate (4) |
$ |
21,705 |
|
$ |
14,381 |
|
|
$ |
19,742 |
|
$ |
13,671 |
|
Fleet Utilization (5) |
|
99% |
|
|
98% |
|
|
|
99% |
|
|
98% |
|
Daily vessel operating
expenses (6) |
$ |
6,199 |
|
$ |
5,390 |
|
|
$ |
6,048 |
|
$ |
5,352 |
|
(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
(In U.S. dollars except for
number of share data) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
REVENUES |
|
|
|
|
|
|
|
|
|
Vessel revenues, net |
$ |
67,497,666 |
|
$ |
21,789,783 |
|
|
$ |
122,138,979 |
|
$ |
28,762,636 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
Voyage expenses -including
commissions to related party |
|
(11,823,637 |
) |
|
(1,368,565 |
) |
|
|
(20,054,408 |
) |
|
(941,593 |
) |
Vessel operating expenses |
|
(16,358,086 |
) |
|
(7,960,638 |
) |
|
|
(31,722,204 |
) |
|
(11,266,895 |
) |
General and administrative
expenses (including related party fees) |
|
(1,139,595 |
) |
|
(720,124 |
) |
|
|
(2,061,302 |
) |
|
(1,459,355 |
) |
Management fees -related
parties |
|
(2,243,150 |
) |
|
(1,750,150 |
) |
|
|
(4,461,650 |
) |
|
(2,524,500 |
) |
Depreciation and
amortization |
|
(6,092,412 |
) |
|
(2,952,053 |
) |
|
|
(12,174,218 |
) |
|
(4,040,601 |
) |
Operating income |
$ |
29,840,786 |
|
$ |
7,038,253 |
|
|
$ |
51,665,197 |
|
$ |
8,529,692 |
|
Interest and finance costs,
net (including related party interest costs) (1) |
|
(1,738,147 |
) |
|
(485,646 |
) |
|
|
(3,346,162 |
) |
|
(840,762 |
) |
Other (expenses)/income,
net |
|
69,053 |
|
|
(2,976 |
) |
|
|
67,787 |
|
|
(12,239 |
) |
US source income taxes |
|
(418,196 |
) |
|
(74,123 |
) |
|
|
(657,038 |
) |
|
(74,123 |
) |
Net income |
$ |
27,753,496 |
|
$ |
6,475,508 |
|
|
$ |
47,729,784 |
|
$ |
7,602,568 |
|
Earnings per common
share (basic and diluted) (2) |
$ |
0.29 |
|
$ |
0.07 |
|
|
$ |
0.50 |
|
$ |
0.10 |
|
Weighted average number of
common shares outstanding, basic (2): |
|
94,610,088 |
|
|
88,933,581 |
|
|
|
94,610,088 |
|
|
73,384,422 |
|
Weighted average number of
common shares outstanding, diluted (2): |
|
94,610,088 |
|
|
88,951,636 |
|
|
|
94,610,088 |
|
|
76,203,009 |
|
CASTOR MARITIME INC.Unaudited Condensed
Consolidated Balance
Sheets(Expressed in U.S. Dollars—except for number
of share data)
|
|
June 30,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
104,387,715 |
$ |
37,173,736 |
Restricted cash |
|
3,053,728 |
|
2,382,732 |
Vessel held for sale |
|
9,418,653 |
|
— |
Other current assets |
|
23,258,309 |
|
15,443,620 |
Total current assets |
|
140,118,405 |
|
55,000,088 |
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
Vessels, net |
|
397,241,121 |
|
393,965,929 |
Advances for vessel
acquisition |
|
— |
|
2,368,165 |
Restricted cash |
|
7,840,000 |
|
3,830,000 |
Due from related party |
|
— |
|
810,437 |
Other non-currents assets |
|
7,237,497 |
|
6,938,823 |
Total non-current
assets, net |
|
412,318,618 |
|
407,913,354 |
Total assets |
|
552,437,023 |
|
462,913,442 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt, net |
|
29,500,335 |
|
16,091,723 |
Due to related parties |
|
1,214,548 |
|
4,507,569 |
Other current liabilities |
|
15,835,352 |
|
13,430,104 |
Total current liabilities |
|
46,550,235 |
|
34,029,396 |
NON-CURRENT
LIABILITIES: |
|
|
|
|
Long-term debt, net |
|
115,222,634 |
|
85,949,676 |
Total non-current
liabilities |
|
115,222,634 |
|
85,949,676 |
Total liabilities |
|
161,772,869 |
|
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 June 30, 2022 and December 31, 2021 (2) |
|
94,610 |
|
94,610 |
Series B Preferred Shares-
12,000 shares issued and outstanding as at June 30, 2022 and
December 31, 2021 |
|
12 |
|
12 |
Additional paid-in
capital |
|
303,658,153 |
|
303,658,153 |
Retained Earnings |
|
86,911,379 |
|
39,181,595 |
Total shareholders’ equity |
|
390,664,154 |
|
342,934,370 |
Total liabilities and shareholders’ equity |
$ |
552,437,023 |
$ |
462,913,442 |
CASTOR MARITIME
INC.Unaudited Consolidated Statements of Cash
Flows
(Expressed in U.S.
Dollars—except for number of share data) |
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
Cash flows provided by
Operating Activities: |
|
|
|
|
Net income |
$ |
47,729,784 |
|
$ |
7,602,568 |
|
Adjustments to
reconcile net income to net cash provided by Operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
12,174,218 |
|
|
4,040,601 |
|
Amortization of deferred
finance charges |
|
436,148 |
|
|
125,234 |
|
Amortization of other deferred
charges |
|
— |
|
|
53,449 |
|
Deferred revenue
amortization |
|
— |
|
|
(157,076 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
Accounts receivable trade,
net |
|
(2,796,675 |
) |
|
(1,496,824 |
) |
Inventories |
|
(3,542,440 |
) |
|
(2,836,214 |
) |
Due from/to related
parties |
|
(2,482,584 |
) |
|
(1,179,669 |
) |
Prepaid expenses and other
assets |
|
(836,191 |
) |
|
(901,228 |
) |
Other deferred charges |
|
127,010 |
|
|
(196,347 |
) |
Accounts payable |
|
3,755,428 |
|
|
515,337 |
|
Accrued liabilities |
|
1,028,491 |
|
|
1,365,569 |
|
Deferred revenue |
|
(1,335,331 |
) |
|
1,564,978 |
|
Dry-dock costs paid |
|
(1,432,706 |
) |
|
(1,288,364 |
) |
Net cash provided by
Operating Activities |
|
52,825,152 |
|
|
7,212,014 |
|
|
|
|
|
|
Cash flows used in
Investing Activities: |
|
|
|
|
Vessel acquisitions and other
vessel improvements |
|
(23,105,822 |
) |
|
(245,945,567 |
) |
Advances for vessel
acquisition |
|
— |
|
|
(9,178,452 |
) |
Net cash used in
Investing Activities |
|
(23,105,822 |
) |
|
(255,124,019 |
) |
|
|
|
|
|
Cash flows provided by
Financing Activities: |
|
|
|
|
Gross proceeds from issuance
of common stock and warrants |
|
— |
|
|
262,516,826 |
|
Common stock issuance
expenses |
|
(65,797 |
) |
|
(12,311,638 |
) |
Proceeds from long-term
debt |
|
55,000,000 |
|
|
33,290,000 |
|
Repayment of long-term
debt |
|
(12,054,000 |
) |
|
(1,571,000 |
) |
Payment of deferred financing
costs |
|
(704,558 |
) |
|
(756,051 |
) |
Net cash provided by
Financing Activities |
|
42,175,645 |
|
|
281,168,137 |
|
|
|
|
|
|
Net increase in cash,
cash equivalents, and restricted cash |
|
71,894,975 |
|
|
33,256,132 |
|
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 |
$ |
115,281,443 |
|
$ |
42,683,035 |
|
(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 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 the
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 charter, during
periods of commercial waiting time or while off-hire during dry
docking or due to other unforeseen circumstances. We may also incur
voyage related expenses when our vessels are engaged in voyage
charters, in which case the majority of voyage expenses are 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 other 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 charters, voyage charters 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
method of 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 EndedJune 30, |
|
Six Months EndedJune 30, |
(In U.S. dollars, except for Available Days) |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Vessel revenues, net |
$ |
67,497,666 |
|
$ |
21,789,783 |
|
|
$ |
122,138,979 |
|
$ |
28,762,636 |
|
Voyage expenses -including
commissions from related party |
|
(11,823,637 |
) |
|
(1,368,565 |
) |
|
|
(20,054,408 |
) |
|
(941,593 |
) |
TCE revenues |
$ |
55,674,029 |
|
$ |
20,421,218 |
|
|
$ |
102,084,571 |
|
$ |
27,821,043 |
|
Available Days |
|
2,565 |
|
|
1,420 |
|
|
|
5,171 |
|
|
2,035 |
|
Daily TCE Rate |
$ |
21,705 |
|
$ |
14,381 |
|
|
$ |
19,742 |
|
$ |
13,671 |
|
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 EndedJune 30, |
|
|
Six Months EndedJune 30, |
(In U.S. dollars) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Net
Income |
$ |
27,753,496 |
$ |
6,475,508 |
|
$ |
47,729,784 |
$ |
7,602,568 |
Depreciation and
amortization |
|
6,092,412 |
|
2,952,053 |
|
|
12,174,218 |
|
4,040,601 |
Interest and finance costs,
net (including related party interest costs) (1) |
|
1,738,147 |
|
485,646 |
|
|
3,346,162 |
|
840,762 |
US source income taxes |
|
418,196 |
|
74,123 |
|
|
657,038 |
|
74,123 |
EBITDA |
$ |
36,002,251 |
$ |
9,987,330 |
|
$ |
63,907,202 |
$ |
12,558,054 |
(1) |
Includes interest and finance costs and interest income, if
any. |
Cautionary Statement Regarding
Forward-Looking StatementsMatters 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, dry
bulk and tanker market 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 (including limitations
improved by COVID-19 and/or due to vessel upgrades and repairs),
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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