Castor Maritime Inc. Reports Net Income of $25.0 Million for the Three Months Ended December 31, 2023 and Net Income of $38.6 Million for the Year Ended December 31, 2023
- Net income from continuing operations for the three months ended December 31, 2023, increased by 220.5% compared to the same period in 2022.
- The year ended December 31, 2023, showed a 35.1% decrease in total vessel revenues compared to the year ended December 31, 2022.
- The company has a strong balance sheet and is committed to seeking further opportunities in the shipping space.
- Total vessel revenues for the three months ended December 31, 2023, decreased by 15.7% compared to the same period in 2022.
- The year ended December 31, 2023, showed a 67.9% decrease in net income from continuing operations compared to the year ended December 31, 2022.
Insights
Castor Maritime Inc.'s Q4 2023 report indicates a substantial decrease in total vessel revenues by 15.7% compared to the same period in the previous year, primarily attributed to declining charter rates and a reduced number of Available Days due to the sale of vessels. The net income from continuing operations, however, shows an impressive 220.5% increase, which may be misleading at first glance as it does not align with the revenue trend. This discrepancy is largely due to non-operational income, specifically the unrealized gains from equity securities investments. Investors should approach this figure with caution as it represents a volatile component that can quickly reverse with market conditions.
The reported EBITDA and Adjusted EBITDA figures, while not in accordance with U.S. GAAP, provide a clearer picture of operational performance by excluding non-cash expenses and certain variable items. The decrease in these figures year-over-year is more indicative of the company's operational challenges. The spin-off of tanker segments and the subsequent classification of this business as discontinued operations is a strategic shift that could streamline operations, but stakeholders should monitor how the reduced diversification affects the company's risk profile.
From a liquidity standpoint, the increase in cash and restricted cash is a positive sign, alongside the reduction in total debt, which has decreased significantly due to vessel sales and prepayments. The company's financial maneuvers, including the ATM Program and the issuance of Series D Preferred Shares, suggest a proactive approach to financing and capital structure management. However, the dividend rate increase on Series D Preferred Shares after seven years introduces a potential future cash outflow that investors should factor into their long-term calculations.
Castor Maritime Inc.'s performance must be contextualized within the broader dry bulk shipping market. The decline in charter rates is reflective of the cyclicality in the shipping industry, influenced by factors such as global trade volumes, commodity demand and fleet supply dynamics. The company's decision to sell older vessels and potentially modernize its fleet is a strategic move that could improve operational efficiency and reduce costs in the long run, but it also temporarily reduces revenue-generating capacity.
The company's management has highlighted its commitment to growth despite the weaker market, which may involve risks but could also position Castor Maritime favorably if market conditions improve. The net gains on vessel sales suggest a strong secondary market for shipping assets, which could offer the company flexibility in managing its fleet composition. However, the net losses on certain vessel sales indicate potential challenges in asset valuation and the need to balance fleet optimization with financial impacts.
The non-compliance with Nasdaq's minimum bid price requirement is a concern that could affect investor sentiment and the company's ability to raise capital in the public markets. The consideration of a reverse stock split to address this issue is a common remedial strategy, but it may not be well-received by all shareholders and could have implications for the stock's liquidity and market perception.
Castor Maritime's engagement in various financial activities, such as the ATM Program, issuance of Series D Preferred Shares and warrant repurchases, requires careful legal consideration to ensure compliance with securities regulations. The equity distribution agreement and the ATM Program are indicative of the company's efforts to maintain liquidity without significantly diluting current shareholders. The structured issuance of Series D Preferred Shares to Toro, with its escalating dividend rate, represents a complex financial instrument that must be clearly communicated to investors to avoid any misunderstandings.
The transactions involving the sale of vessels to entities beneficially owned by a family member of the Chairman, CEO and CFO raise potential conflict of interest concerns that must be managed with transparency and adherence to governance best practices. The company's disclosures about these sales are critical for maintaining investor trust and avoiding legal scrutiny.
Finally, the company's ongoing compliance with Nasdaq's listing requirements, including the minimum bid price, is essential for its continued presence in the capital market. The contemplated reverse stock split is a legal strategy to address this issue, but it must be executed in accordance with shareholder approvals and regulatory guidelines.
LIMASSOL, Cyprus, Feb. 08, 2024 (GLOBE NEWSWIRE) -- 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, 2023.
Earnings Highlights of the Fourth Quarter Ended December 31, 2023:
- Total vessel revenues from continuing operations:
$26.4 million for the three months ended December 31, 2023, as compared to$31.3 million for the three months ended December 31, 2022, or a15.7% decrease; - Net income from continuing operations of
$25.0 million for the three months ended December 31, 2023, as compared to net income from continuing operations of$7.8 million for the three months ended December 31, 2022, or a220.5% increase; - Net income of
$25.0 million for the three months ended December 31, 2023, as compared to net income of$33.7 million for the three months ended December 31, 2022, or a25.8% decrease; - Earnings (basic) per common share from continuing operations:
$0.25 per share for the three months ended December 31, 2023, as compared to$0.08 per share for the three months ended December 31, 2022; - EBITDA from continuing operations(1):
$31.4 million for the three months ended December 31, 2023, as compared to$15.0 million for the three months ended December 31, 2022; - Adjusted EBITDA from continuing operations(1):
$12.8 million for the three months ended December 31, 2023, as compared to$15.0 million for the three months ended December 31, 2022; - Cash and restricted cash from continuing operations of
$120.9 million as of December 31, 2023, as compared to$109.9 million as of December 31, 2022.
(1) EBITDA and Adjusted EBITDA are not recognized measures under United States generally accepted accounting principles (“U.S. GAAP”). Please refer to Appendix B for the definition and reconciliation of these measures to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Highlights of the Year Ended December 31, 2023:
- Total vessel revenues from continuing operations:
$97.5 million for the year ended December 31, 2023, as compared to$150.2 million for the year ended December 31, 2022, or a35.1% decrease; - Net income from continuing operations of
$21.3 million for the year ended December 31, 2023, as compared to net income from continuing operations of$66.5 million for the year ended December 31, 2022, or a67.9% decrease; - Net income of
$38.6 million for the year ended December 31, 2023, as compared to$118.6 million for the year ended December 31, 2022, or a67.5% decrease; - Earnings (basic) per common share from continuing operations:
$0.21 per share for the year ended December 31, 2023, as compared to$0.70 per share for the year ended December 31, 2022; - EBITDA from continuing operations(1):
$51.6 million for the year ended December 31, 2023, as compared to$91.8 million for the year ended December 31, 2022; - Adjusted EBITDA from continuing operations(1):
$46.5 million for the year ended December 31, 2023, as compared to$91.8 million for the year ended December 31, 2022; - The spin-off (the “Spin-Off”) of our Aframax/LR2 and Handysize tanker segments to a new Nasdaq listed company, Toro Corp. (“Toro”), was completed on March 7, 2023; and
- Following the Spin-Off, the results of the tanker business are reported as discontinued operations for all periods presented.
(1) EBITDA and Adjusted EBITDA are not recognized measures under United States generally accepted accounting principles (“U.S. GAAP”). Please refer to Appendix B for the definition and reconciliation of these measures to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Management Commentary Fourth Quarter 2023:
Mr. Petros Panagiotidis, Chairman, Chief Executive Officer and Chief Financial Officer of Castor commented:
“In 2023 we once more generated positive operating cash flows despite a weaker dry cargo market compared to 2022. In the fourth quarter of 2023 we continued with the disposition of certain of our older dry cargo vessels in order to improve the profile of our fleet.
We enjoy a strong balance sheet and we remain committed to our growth trajectory by seeking further opportunities in the shipping space, including opportunities to modernize our fleet.”
Earnings Commentary:
Fourth Quarter ended December 31, 2023, and 2022 Results
Total vessel revenues from continuing operations for the three months ended December 31, 2023, decreased to
The decrease in voyage expenses from continuing operations to
The decrease in vessel operating expenses from continuing operations by
Management fees from continuing operations in the three months ended December 31, 2023, amounted to
The decrease in vessels’ depreciation and amortization costs by
General and administrative expenses from continuing operations in the three months ended December 31, 2023, amounted to
Net gain on sale of vessels from continuing operations in the three months ended December 31, 2023, amounted to
During the three months ended December 31, 2023, we incurred net interest costs and finance costs from continuing operations amounting to
Other income, net from continuing operations in the three months ended December 31, 2023, amounted to
Recent Financial Developments Commentary:
At-the-market (“ATM”) Common Shares offering program
On May 23, 2023, we entered into an equity distribution agreement, for an at-the-market offering of our common shares, par value
Issuance of Series D Preferred Shares
On August 7, 2023, we agreed to issue 50,000 Series D Preferred Shares, having a stated value of
The Series D Preferred Shares are convertible, in whole or in part, at Toro’s option to Common Shares from the first anniversary of the issue date of the Series D Preferred Shares at the lower of (i)
Warrant Repurchases
On October 6, 2023, we repurchased, in privately negotiated transactions with unaffiliated third-party warrantholders, 8,900,000 warrants issued on April 7, 2021 (the “April 7 Warrants”) and 67,864 warrants issued on July 15, 2020 (the “Private Placement Warrants”) for
Liquidity/ Financing/Cash flow update
Our consolidated cash position (including our restricted cash) from continuing operations as of December 31, 2023, increased by
As of December 31, 2023, our total debt from continuing operations, gross of unamortized deferred loan fees, was
Recent Business Developments Commentary:
On October 6, 2023, we entered into an agreement with an unaffiliated third party for the sale of the M/V Magic Sun, a 2001-built Panamax, at a price of
On October 16, 2023, we entered into an agreement with an unaffiliated third party for the sale of the M/V Magic Phoenix, a 2008-built Panamax, at a price of
On September 22, 2023, we entered into an agreement with an unaffiliated third party for the sale of the M/V Magic Argo, a 2009-built Kamsarmax, at price of
On November 10, 2023, we entered into an agreement with an unaffiliated third party for the sale of the M/V Magic Moon, a 2005-built Panamax, at a price of
On December 7, 2023, we entered into an agreement with an unaffiliated third party for the sale of the M/V Magic Orion, a 2006-built Capesize, at a price of
On December 21, 2023, we entered into an agreement with an entity beneficially owned by a family member of our Chairman, Chief Executive Officer and Chief Financial Officer for the sale of the M/V Magic Venus, a 2010-built Kamsarmax, at a price of
On January 19, 2024, we entered into an agreement with an entity beneficially owned by a family member of our Chairman, Chief Executive Officer and Chief Financial Officer for the sale of the M/V Magic Horizon, a 2010-built Panamax, at a price of
On January 19, 2024, the Company entered into an agreement with an entity beneficially owned by a family member of our Chairman, Chief Executive Officer and Chief Financial Officer for the sale of the M/V Magic Nova, a 2010-built Panamax, at a price of
Recent Other Developments Commentary:
Nasdaq Capital Market Minimum Bid Price Notice
On April 20, 2023, the Company received a notification from the Nasdaq that it was not in compliance with the minimum
Fleet Employment Status (as of February 7, 2024) During the three months ended December 31, 2023, we operated on average 18.9 vessels earning a Daily TCE Rate(2) of
Our employment profile as of February 7, 2024 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 | Capacity (dwt) | Year Built | Country of Construction | Type of Employment(1) | Daily Gross Charter Rate | Estimated Redelivery Date | |||
| Earliest | Latest | |||||||||
| Magic Orion (3) | Capesize | 180,200 | 2006 | Japan | TC period | Jan-24(2) | Apr-24 | |||
| Magic Venus (3) | Kamsarmax | 83,416 | 2010 | Japan | TC period | Apr-24 | Jul-24 | |||
| Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | TC period | Sep-24 | -(13) | |||
| Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | TC period | Sep-24 | -(13) | |||
| Magic Starlight | Kamsarmax | 81,048 | 2015 | China | TC period | Jun-24 | -(14) | |||
| Magic Nebula | Kamsarmax | 80,281 | 2010 | Korea | TC trip | Apr-24 | May-24 | |||
| Magic Nova (3) | Panamax | 78,833 | 2010 | Japan | TC period | Apr-24 | -(14) | |||
| Magic Mars | Panamax | 76,822 | 2014 | Korea | TC period | May-24 | -(14) | |||
| Magic Horizon (3) | Panamax | 76,619 | 2010 | Japan | TC period | Mar-24 | -(15) | |||
| Magic P | Panamax | 76,453 | 2004 | Japan | TC period | May-24 | -(14) | |||
| Magic Vela | Panamax | 75,003 | 2011 | China | TC period | May-24 | Aug-24 | |||
| Magic Eclipse | Panamax | 74,940 | 2011 | Japan | TC period | Mar-24 | Jun-24 | |||
| Magic Pluto | Panamax | 74,940 | 2013 | Japan | TC period | Sep-24 | -(13) | |||
| Magic Callisto | Panamax | 74,930 | 2012 | Japan | TC period | Apr-24 | Jul-24 | |||
| Containerships | ||||||||||
| Vessel Name | Type | Capacity (dwt) | Year Built | Country of Construction | Type of Employment | Daily Gross Charter Rate ($/day) | Estimated Redelivery Date | |||
| Earliest | Latest | |||||||||
| Ariana A | Containership | 38,117 | 2005 | Germany | TC period | May-24 | Jun-24 | |||
| Gabriela A | Containership | 38,121 | 2005 | Germany | TC period | 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 5TC routes (“BCI5TC”) is a non-scrubber fitted 180,000mt dwt vessel (Capesize) with specific age, speed – consumption, and design characteristics. Based on the terms of charter, the estimated earliest redelivery date for the M/V Magic Orion was January 2024.
(3) We agreed to sell the M/V Magic Orion, M/V Magic Venus, M/V Magic Nova and M/V Magic Horizon on December 7, 2023, December 21, 2023, January 19, 2024, and January 19, 2024, respectively. The vessels are still employed under their existing charter parties and are each expected to be delivered to their new owners during the first quarter of 2024.
(4) The vessel’s daily gross charter rate is equal to
(5) The vessel’s daily gross charter rate is equal to
(6) The vessel’s daily gross charter rate is equal to
(7) The vessel’s daily gross charter rate is equal to
(8) The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 4TC routes (“BPI4TC”) is a non-scrubber fitted 74,000mt dwt vessel (Panamax) with specific age, speed – consumption, and design characteristics.
(9) The vessel’s daily gross charter rate is equal to
(10) The vessel’s daily gross charter rate is equal to
(11) The vessel’s daily gross charter rate is equal to
(12) The vessel’s daily gross charter rate is equal to
(13) The earliest redelivery under the prevailing charter party is 9 months after delivery. Thereafter, both we and the charterers have the option to terminate the charter by providing 3 months written notice to the other party.
(14) The earliest redelivery under the prevailing charter party is 7 months after delivery. Thereafter, both we and the charterers have the option to terminate the charter by providing 3 months written notice to the other party.
(15) The earliest redelivery under the prevailing charter party is 8 months after delivery. Thereafter, both we and the charterers have the option to terminate the charter by providing 3 months written notice to the other party.
(16) The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 5TC routes (“BPI5TC”) is a non-scrubber fitted 82,000mt dwt vessel (Kamsarmax) with specific age, speed–consumption, and design characteristics.
Financial Results Overview of Continuing Operations:
Set forth below are selected financial data of our dry bulk and containerships fleets (continuing operations) for each of the three months and year ended December 31, 2023, and 2022, respectively:
| Three Months Ended | Year Ended | |||||||
| (Expressed in U.S. dollars) | December 31, 2023 (unaudited) | December 31, 2022 (unaudited) | December 31, 2023 (unaudited) | December 31, 2022 (unaudited) | ||||
| Total vessel revenues | $ | 26,363,527 | $ | 31,296,037 | $ | 97,515,511 | $ | 150,216,130 |
| Operating income | $ | 7,442,258 | $ | 9,846,891 | $ | 22,007,914 | $ | 73,093,725 |
| Net income, net of taxes | $ | 25,013,724 | $ | 7,843,890 | $ | 21,303,156 | $ | 66,540,925 |
| EBITDA (1) | $ | 31,375,113 | $ | 14,972,000 | $ | 51,607,538 | $ | 91,790,822 |
| Adjusted EBITDA(1) | $ | 12,770,758 | $ | 14,972,000 | $ | 46,473,525 | $ | 91,790,822 |
| Earnings (basic) per common share | $ | 0.25 | $ | 0.08 | $ | 0.21 | $ | 0.70 |
| Earnings (diluted) per common share | $ | 0.11 | $ | 0.08 | $ | 0.10 | $ | 0.70 |
(1) EBITDA and Adjusted EBITDA are not recognized measures under U.S. GAAP. Please refer to Appendix B of this release for the definition and reconciliation of these measures 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 dry bulk and containership fleets (continuing operations) for each of the three months and year ended December 31, 2023, and 2022, respectively, that we believe are useful in analyzing trends in our results of operations.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||
| (Expressed in U.S. dollars except for operational data) | 2023 | 2022 | 2023 | 2022 | |||||
| Ownership Days(1)(7) | 1,740 | 1,911 | 7,507 | 7,367 | |||||
| Available Days(2)(7) | 1,740 | 1,824 | 7,483 | 7,175 | |||||
| Operating Days(3)(7) | 1,716 | 1,821 | 7,433 | 7,125 | |||||
| Daily TCE Rate(4) | $ | 14,530 | $ | 16,295 | $ | 12,356 | $ | 20,417 | |
| Fleet Utilization(5) | |||||||||
| Daily vessel operating expenses(6) | $ | 5,802 | $ | 5,394 | $ | 5,583 | $ | 5,601 | |
(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 Ended December 31, | Year Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| REVENUES | |||||||||||||
| Total vessel revenues | $ | 26,363,527 | $ | 31,296,037 | $ | 97,515,511 | $ | 150,216,130 | |||||
| EXPENSES | |||||||||||||
| Voyage expenses (including commissions to related party) | (1,081,795 | ) | (1,573,556 | ) | (5,052,228 | ) | (3,721,277 | ) | |||||
| Vessel operating expenses | (10,095,623 | ) | (10,308,607 | ) | (41,913,628 | ) | (41,259,554 | ) | |||||
| Management fees - related parties | (1,718,598 | ) | (1,783,400 | ) | (7,167,397 | ) | (6,562,400 | ) | |||||
| Depreciation and amortization | (4,851,439 | ) | (5,143,370 | ) | (22,076,831 | ) | (18,535,237 | ) | |||||
| General and administrative expenses (including related party fees) | (1,279,218 | ) | (2,640,213 | ) | (5,681,371 | ) | (7,043,937 | ) | |||||
| Net gain on sale of vessels | 105,404 | — | 6,383,858 | — | |||||||||
| Operating income | $ | 7,442,258 | $ | 9,846,891 | $ | 22,007,914 | $ | 73,093,725 | |||||
| Interest and finance costs, net (1) | (1,431,062 | ) | (1,848,545 | ) | (8,049,757 | ) | (6,325,991 | ) | |||||
| Other income / (expenses), net | 19,081,416 | (18,261 | ) | 7,522,793 | 161,860 | ||||||||
| Income taxes | (78,888 | ) | (136,195 | ) | (177,794 | ) | (388,669 | ) | |||||
| Net income and comprehensive income from continuing operations, net of taxes | $ | 25,013,724 | $ | 7,843,890 | $ | 21,303,156 | $ | 66,540,925 | |||||
| Net income and comprehensive income from discontinued operations, net of taxes | $ | — | 25,837,658 | $ | 17,339,332 | $ | 52,019,765 | ||||||
| Net income and comprehensive income | $ | 25,013,724 | 33,681,548 | $ | 38,642,488 | $ | 118,560,690 | ||||||
| Dividend on Series D Preferred Shares | (638,889 | ) | — | (1,020,833 | ) | — | |||||||
| Deemed dividend on Series D Preferred Shares | (123,273 | ) | — | (196,296 | ) | — | |||||||
| Deemed dividend on warrants repurchase | (444,885 | ) | — | (444,885 | ) | — | |||||||
| Net income attributable to common shareholders | $ | 23,806,677 | 33,681,548 | $ | 36,980,474 | 118,560,690 | |||||||
| Earnings per common share, basic, continuing operations | $ | 0.25 | $ | 0.08 | $ | 0.21 | $ | 0.70 | |||||
| Earnings per common share, diluted, continuing operations | $ | 0.11 | $ | 0.08 | $ | 0.10 | $ | 0.70 | |||||
| Earnings per common share, basic, discontinued operations | $ | — | $ | 0.27 | $ | 0.18 | $ | 0.55 | |||||
| Earnings per common share, diluted, discontinued operations | $ | — | $ | 0.27 | $ | 0.08 | $ | 0.55 | |||||
| Earnings per common share, basic, Total | $ | 0.25 | $ | 0.36 | $ | 0.39 | $ | 1.25 | |||||
| Earnings per common share, diluted, Total | $ | 0.11 | $ | 0.36 | $ | 0.17 | $ | 1.25 | |||||
| Weighted average number of common shares outstanding, basic | 96,623,876 | 94,610,088 | 95,710,781 | 94,610,088 | |||||||||
| Weighted average number of common shares outstanding, diluted | 226,956,120 | 94,610,088 | 219,530,247 | 94,610,088 | |||||||||
(1) Includes interest and finance costs and interest income, if any.
CASTOR MARITIME INC.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in U.S. Dollars—except for number of share data)
| December 31, 2023 | December 31, 2022 | |||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ | 111,383,645 | $ | 100,593,557 |
| Restricted cash | 2,327,502 | 1,684,269 | ||
| Due from related parties | 5,650,168 | 2,664,976 | ||
| Assets held for sale | 38,656,048 | — | ||
| Other current assets | 84,259,511 | 6,762,778 | ||
| Current assets of discontinued operations | — | 54,763,308 | ||
| Total current assets | 242,276,874 | 166,468,888 | ||
| NON-CURRENT ASSETS: | ||||
| Vessels, net | 229,536,996 | 343,408,466 | ||
| Restricted cash | 7,190,000 | 7,550,000 | ||
| Due from related parties | 4,504,340 | 3,514,098 | ||
| Investment in related party | 117,537,135 | — | ||
| Other non-currents assets | 3,996,634 | 9,491,322 | ||
| Non-Current assets of discontinued operations | — | 102,715,796 | ||
| Total non-current assets | 362,765,105 | 466,679,682 | ||
| Total assets | 605,041,979 | 633,148,570 | ||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Current portion of long-term debt, net | 17,679,295 | 29,170,815 | ||
| Debt related to assets held for sale, net | 2,406,648 | — | ||
| Due to related parties, current | 541,666 | 227,622 | ||
| Other current liabilities | 7,974,787 | 15,671,903 | ||
| Current liabilities of discontinued operations | — | 6,519,051 | ||
| Total current liabilities | 28,602,396 | 51,589,391 | ||
| NON-CURRENT LIABILITIES: | ||||
| Long-term debt, net | 65,709,842 | 109,600,947 | ||
| Non-Current liabilities of discontinued operations | — | 10,463,172 | ||
| Total non-current liabilities | 65,709,842 | 120,064,119 | ||
| Total liabilities | 94,312,238 | 171,653,510 | ||
| MEZZANINE EQUITY | ||||
| 49,549,489 | — | |||
| Total mezzanine equity | 49,549,489 | — | ||
| SHAREHOLDERS’ EQUITY | ||||
| Common shares, | 96,624 | 94,610 | ||
| Series B Preferred Shares- 12,000 shares issued and outstanding as of December 31, 2023, and December 31, 2022 | 12 | 12 | ||
| Additional paid-in capital | 266,360,857 | 303,658,153 | ||
| Retained Earnings | 194,722,759 | 157,742,285 | ||
| Total shareholders’ equity | 461,180,252 | 461,495,060 | ||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 605,041,979 | $ | 633,148,570 |
CASTOR MARITIME INC.
Unaudited Consolidated Statements of Cash Flows
| (Expressed in U.S. Dollars) | Year Ended December 31, | |||||
| 2023 | 2022 | |||||
| Cash Flows provided by Operating Activities of continuing operations: | ||||||
| Net income | $ | 38,642,488 | $ | 118,560,690 | ||
| Less: Net income from discontinued operations, net of taxes | 17,339,332 | 52,019,765 | ||||
| Net income from continuing operations, net of taxes | 21,303,156 | 66,540,925 | ||||
| Adjustments to reconcile net income from continuing operations to net cash provided by Operating Activities: | ||||||
| Depreciation and amortization | 22,076,831 | 18,535,237 | ||||
| Amortization of deferred finance charges | 888,523 | 730,513 | ||||
| Amortization of fair value of acquired time charters | 2,242,333 | 409,538 | ||||
| Net gain on sale of vessels | (6,383,858 | ) | — | |||
| Realized gain on sale of equity securities | (2,636 | ) | (27,450 | ) | ||
| Unrealized gains on equity securities | (5,134,013 | ) | — | |||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable trade, net | (208,487 | ) | 1,415,828 | |||
| Inventories | 539,742 | (640,665 | ) | |||
| Due from/to related parties | (4,518,056 | ) | 7,573,712 | |||
| Prepaid expenses and other assets | (86,333 | ) | 247,377 | |||
| Other deferred charges | 51,138 | 114,761 | ||||
| Accounts payable | (3,260,521 | ) | 3,344,840 | |||
| Accrued liabilities | (1,894,102 | ) | 1,407,618 | |||
| Deferred revenue | (1,034,987 | ) | (796,014 | ) | ||
| Dry-dock costs paid | (2,395,365 | ) | (3,180,671 | ) | ||
| Net Cash provided by Operating Activities from continuing operations | 22,183,365 | 95,675,549 | ||||
| Cash flow used in Investing Activities of continuing operations: | ||||||
| Vessel acquisitions and other vessel improvements | (623,283 | ) | (75,553,224 | ) | ||
| Purchase of equity securities | (72,211,450 | ) | (60,750 | ) | ||
| Proceeds from sale of equity securities | 258,999 | 88,200 | ||||
| Net proceeds from sale of vessels | 63,607,430 | — | ||||
| Net cash used in Investing Activities from continuing operations | (8,968,304 | ) | (75,525,774 | ) | ||
| Cash flows (used in) / provided by Financing Activities of continuing operations: | ||||||
| Gross proceeds from issuance of common shares | 881,827 | — | ||||
| Common shares issuance expenses | (260,936 | ) | (65,797 | ) | ||
| Repurchase of warrants | (941,626 | ) | — | |||
| Proceeds from Series D Preferred Shares, net of costs | 49,853,193 | — | ||||
| Dividends paid on Series D Preferred Shares | (479,167 | ) | — | |||
| Proceeds from long-term debt | — | 77,500,000 | ||||
| Repayment of long-term debt | (53,864,500 | ) | (24,493,000 | ) | ||
| Payment of deferred financing costs | (25,178 | ) | (986,209 | ) | ||
| Proceeds received from Toro related to Spin-Off | 2,694,647 | — | ||||
| Net cash (used in) / provided by Financing Activities from continuing operations | (2,141,740 | ) | 51,954,994 | |||
| Cash flows of discontinued operations: | ||||||
| Net cash provided by Operating Activities from discontinued operations | 20,409,041 | 28,077,502 | ||||
| Net cash (used in) / provided by Investing Activities from discontinued operations | (153,861 | ) | 11,788,681 | |||
| Net cash used in Financing Activities from discontinued operations | (62,734,774 | ) | (3,050,000 | ) | ||
| Net cash (used in) / provided by discontinued operations | (42,479,594 | ) | 36,816,183 | |||
| Net (decrease)/increase in cash, cash equivalents, and restricted cash | (31,406,273 | ) | 108,920,952 | |||
| Cash, cash equivalents and restricted cash at the beginning of the period | 152,307,420 | 43,386,468 | ||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 120,901,147 | $ | 152,307,420 | ||
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. 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. We calculate Daily TCE Rate by dividing total revenues (time charter and/or voyage charter revenues, and/or pool revenues, net of charterers’ commissions), less voyage expenses, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time or other charter, during periods of commercial waiting time or while off-hire during dry-docking or due to other unforeseen circumstances. Under voyage charters, the majority of voyage expenses are generally borne by us whereas for vessels in a pool, such expenses are borne by the pool operator. The Daily TCE Rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance and management believes that the Daily TCE Rate provides meaningful information to our investors since it compares daily net earnings generated by our vessels irrespective of the mix of charter types (i.e., time charter, voyage charter, or other) under which our vessels are employed between the periods while it further assists our management in making decisions regarding the deployment and use of our vessels and in evaluating our financial performance. Our calculation of the Daily TCE Rates may be different from and may not be comparable to that reported by other companies.
The following table reconciles the calculation of the Daily TCE Rate for our dry bulk and containership fleet (continuing operations) to Total vessel revenues (from continuing operations) 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) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Total vessel revenues | $ | 26,363,527 | $ | 31,296,037 | $ | 97,515,511 | $ | 150,216,130 | |||||
| Voyage expenses - including commissions to related party | (1,081,795 | ) | (1,573,556 | ) | (5,052,228 | ) | (3,721,277 | ) | |||||
| TCE revenues | $ | 25,281,732 | $ | 29,722,481 | $ | 92,463,283 | $ | 146,494,853 | |||||
| Available Days | 1,740 | 1,824 | 7,483 | 7,175 | |||||||||
| Daily TCE Rate | $ | 14,530 | $ | 16,295 | $ | 12,356 | $ | 20,417 | |||||
EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. GAAP, do 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. 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. Adjusted EBITDA represents EBITDA adjusted to exclude unrealized gain/loss on equity securities, which the Company believes are not indicative of the ongoing performance of its core operations. EBITDA and Adjusted EBITDA are used as supplemental financial measure by management and external users of financial statements to assess our operating performance. We believe that EBITDA and Adjusted 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 for EBITDA, and further excluding unrealized gains/ loss on securities for Adjusted EBITDA, 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 and Adjusted EBITDA as measures 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. Our basis of computing EBITDA and Adjusted EBITDA as presented below may be different from and may not be comparable to similarly titled measures of other companies.
The following table reconciles EBITDA and Adjusted EBITDA to Net income from continuing operations, the most directly comparable U.S. GAAP financial measure, for the periods presented:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
| (In U.S. dollars) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Net Income from continuing operations, net of taxes | $ | 25,013,724 | $ | 7,843,890 | $ | 21,303,156 | $ | 66,540,925 | |||||
| Depreciation and amortization | 4,851,439 | 5,143,370 | 22,076,831 | 18,535,237 | |||||||||
| Interest and finance costs, net (1) | 1,431,062 | 1,848,545 | 8,049,757 | 6,325,991 | |||||||||
| US source income taxes | 78,888 | 136,195 | 177,794 | 388,669 | |||||||||
| EBITDA | $ | 31,375,113 | $ | 14,972,000 | $ | 51,607,538 | $ | 91,790,822 | |||||
| Unrealized gain on equity securities | (18,604,355 | ) | - | (5,134,013 | ) | - | |||||||
| Adjusted EBITDA | $ | 12,770,758 | $ | 14,972,000 | $ | 46,473,525 | $ | 91,790,822 | |||||
(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 (including the expected deliveries of vessels by us discussed herein), 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 current or 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. 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 the effects of the spin-off of our tanker business, our business strategy, shipping markets conditions and trends, changes in the size and composition of our fleet, our ability to realize the expected benefits of vessel acquisitions, increased transactions costs and other adverse effects (such as lost profit) due to any failure to consummate any sale of our vessels, 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, 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 armed conflicts such as the war in Ukraine and the conflict in the Middle East, acts of piracy or maritime aggression, such as recent maritime incidents involving vessels in and around the Red Sea, “trade wars”, global public health threats and major outbreaks of disease), changes in seaborne and other transportation (including as a result of the maritime incidents in and around the Red Sea), changes in governmental rules and regulations or actions taken by regulatory authorities, accidents and the impact of adverse weather and natural disasters. 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, except to the extent required by applicable law. New factors emerge from time to time, and it is not possible for us to predict all or any of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these foregoing and other risks and uncertainties. These factors and the other risk factors described in this press release are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
CONTACT DETAILS
For further information please contact:
Petros Panagiotidis
Chief Executive Officer & Chief Financial Officer
Castor Maritime Inc.
Email: ir@castormaritime.com
Media Contact:
Kevin Karlis
Capital Link
Email: castormaritime@capitallink.com
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