Castor Maritime Inc. Reports Net Income of $8.2 Million for the Three Months Ended June 30, 2023 and Net income of $19 Million for the Six Months Ended June 30, 2023
- Total vessel revenues from continuing operations decreased by 39.3% to $25.3 million for the three months ended June 30, 2023.
- Net income decreased by 70.5% to $8.2 million for the three months ended June 30, 2023.
- Cash and restricted cash decreased to $38.3 million as of June 30, 2023, compared to $109.9 million as of December 31, 2022.
- The spin-off of the Aframax/LR2 and Handysize tanker segments may impact the company's future financial performance.
- The decrease in total vessel revenues and net income could affect the company's stock price.
- The decrease in cash and restricted cash may limit the company's ability to pursue growth opportunities.
LIMASSOL, Cyprus, Aug. 08, 2023 (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 six months ended June 30, 2023.
Earnings Highlights of the Second Quarter Ended June 30, 2023:
- Total Vessel Revenues from continuing operations:
$25.3 million for the three months ended June 30, 2023, as compared to$41.7 million for the three months ended June 30, 2022, or a39.3% decrease; - Net income of
$8.2 million for the three months ended June 30, 2023, as compared to$27.8 million for the three months ended June 30, 2022, or a70.5% decrease; - Net income from continuing operations:
$8.2 million for the three months ended June 30, 2023, as compared to$22 million for the three months ended June 30, 2022, or a62.7% decrease; - Earnings (basic and diluted) per common share from continuing operations:
$0.09 per share for the three months ended June 30, 2023, as compared to$0.23 per share for the three months ended June 30, 2022; - EBITDA from continuing operations(1):
$16.1 million for the three months ended June 30, 2023, as compared to$27.9 million for the three months ended June 30, 2022; - Adjusted EBITDA from continuing operations(1):
$13.5 million for the three months ended June 30, 2023, as compared to$27.9 million for the three months ended June 30, 2022; - Cash and restricted cash of
$38.3 million as of June 30, 2023, as compared to$109.9 million as of December 31, 2022.
Highlights of the Six Months Ended June 30, 2023:
- Total Vessel Revenues from continuing operations:
$49.7 million for the six months ended June 30, 2023, as compared to$79.5 million for the six months ended June 30, 2022, or a37.5% decrease; - Net income of
$19 million for the six months ended June 30, 2023, as compared to$47.7 million for the six months ended June 30, 2022, or a60.2% decrease; - Net income from continuing operations:
$1.7 million for the six months ended June 30, 2023, as compared to$40.4 million for the six months ended June 30, 2022, or a95.8% decrease; - Earnings (basic and diluted) per common share from continuing operations:
$0.02 per share for the six months ended June 30, 2023, as compared to$0.43 per share for the six months ended June 30, 2022; - EBITDA from continuing operations(1):
$17.7 million for the six months ended June 30, 2023, as compared to$52.2 million for the six months ended June 30, 2022; - Adjusted EBITDA from continuing operations(1):
$22.8 million for the six months ended June 30, 2023, as compared to$52.2 million for the six months ended June 30, 2022; - The spin-off (the “Spin-Off”) of our Aframax/LR2 and Handysize tanker segments to a new Nasdaq listed company, Toro Corp., was completed on March 7, 2023; and
- Discontinued operations: 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 Second Quarter 2023:
Mr. Petros Panagiotidis, Chairman, Chief Executive Officer and Chief Financial Officer of Castor commented:
“In the second quarter of 2023 we continued to observe a softness in the dry cargo market compared to the second quarter a year ago, which affected our revenues and cash flows. We believe that the dry bulk fundamentals remain healthy given the historically low order book and the expected recovery for the Chinese economy.
We enjoy a strong balance sheet and we remain committed to our growth trajectory by seeking further opportunities in the shipping space.”
Earnings Commentary:
Second Quarter ended June 30, 2023, and 2022 Results
Total vessel revenues from continuing operations for the three months ended June 30, 2023, decreased to
The increase 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 June 30, 2023, amounted to
The increase in vessels’ depreciation and amortization costs by
General and administrative expenses from continuing operations in the three months ended June 30, 2023, amounted to
Gain on sale of vessel from continuing operations in the three months ended June 30, 2023, amounted to
During the three months ended June 30, 2023, we incurred net interest costs and finance costs from continuing operations amounting to
Other income / (expenses), net from continuing operations in the three months ended June 30, 2023, amounted to
Recent Financial Developments Commentary:
At-the-market (“ATM”) common stock offering program
On May 23, 2023, we entered into an equity distribution agreement, for an at-the-market offering, with Maxim Group LLC acting as a sales agent, under which we may sell an aggregate offering price of up to
New Series D Preferred shares
On August 7, 2023, we agreed to issue 50,000 Series D Preferred shares (“Pref D shares”) of
Investment in listed equity securities
On June 30, 2023, we filed a Schedule 13G, reporting that we hold 1,391,500 shares of common stock of Eagle Bulk Shipping Inc. (“Eagle”), representing
Liquidity/ Financing/ Cash flow update
Our consolidated cash position (including our restricted cash) from continuing operations as of June 30, 2023, decreased by
As of June 30, 2023, our total debt (including the debt related to assets held for sale) from continuing operations, gross of unamortized deferred loan fees, was
Recent Business Developments Commentary:
Sale of vessels
On April 18, 2023, the M/V Magic Rainbow was delivered to its new owners. The Company recorded during the second quarter of 2023 a net gain on the sale of the M/V Magic Rainbow of approximately
On June 2, 2023, we entered into an agreement with a third party for the sale of the M/V Magic Twilight, a 2010-built Kamsarmax, at a price of
Recent Other Developments Commentary:
Nasdaq Capital Market Minimum Bid Price Notice
On April 20, 2023, the Company received written notification from the Nasdaq Stock Market that it was not in compliance with the minimum
Fleet Employment Status (as of August 7, 2023) During the three months ended June 30, 2023, we operated on average 21.2 vessels earning a Daily TCE Rate(2) of
Our current employment profile is presented immediately below.
(2) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
| Dry Bulk Carriers | |||||||||
| Vessel Name | Type | Capacity (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 | Jan-24 | Apr-24 | ||
| Magic Venus | Kamsarmax | 83,416 | 2010 | Japan | TC period | Apr-24 | Jul-24 | ||
| Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | TC period | Sep-23 | Dec-23 | ||
| Magic Argo | Kamsarmax | 82,338 | 2009 | Japan | TC period | Apr-24 | Jul-24 | ||
| Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | TC period | Sep-23 | Dec-23 | ||
| Magic Starlight | Kamsarmax | 81,048 | 2015 | China | TC period | Nov-23 (12) | Feb-24 | ||
| Magic Nebula | Kamsarmax | 80,281 | 2010 | Korea | TC trip | Oct-23 | - | ||
| Magic Nova | Panamax | 78,833 | 2010 | Japan | TC period | Sep-23(10) | Dec-23 | ||
| Magic Mars | Panamax | 76,822 | 2014 | Korea | TC period | Oct-23(9) | Jan-24 | ||
| Magic Phoenix | Panamax | 76,636 | 2008 | Japan | TC period | Aug-23 | Nov-23 | ||
| Magic Horizon | Panamax | 76,619 | 2010 | Japan | TC period | Mar-24 | -(7) | ||
| Magic Moon | Panamax | 76,602 | 2005 | Japan | TC period | Apr-23 | Jul-23 (13) | ||
| Magic P | Panamax | 76,453 | 2004 | Japan | TC period | Oct-23(11) | Jan-24 | ||
| Magic Sun | Panamax | 75,311 | 2001 | Korea | TC trip | Oct-23 | - | ||
| 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 | Dec-23 | Mar-24 | ||
| 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 | Jan-24 | Mar-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.
(3) 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.
(4) The vessel’s daily gross charter rate is equal to
(5) 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.
(6) The vessel’s daily gross charter rate is equal to
(7) The earliest redelivery under the prevailing charter party is 8 months after delivery. Thereafter both Owners and Charterers have the option to terminate the charter by providing 3 months written notice to the other party.
(8) On July 19, 2023, the vessel was fixed under a trip time charter contract, with expected delivery on about 10/08/2023, with a rate of
(9) On October 2, 2023, the vessel will be delivered under a new charter with a daily gross charter rate equal to
(10) On September 19, 2023, the vessel will be delivered under a new charter with a daily gross charter rate equal to
(11) On October 12, 2023, the vessel will be delivered under a new charter with a daily gross charter rate equal to
(12) On November 3, 2023, the vessel will be delivered under a new charter with a daily gross charter rate equal to
(13) The vessel is still employed under its existing charter party. As of June 30, 2023, the vessel is classified as held for sale and is expected to be delivered to its new owners during the third quarter of 2023.
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 and six months ended June 30, 2023, and 2022, respectively:
| Three Months Ended | Six Months Ended | |||||||||
| (Expressed in U.S. dollars) | June 30, 2023 (unaudited) | June 30, 2022 (unaudited) | June 30, 2023 (unaudited) | June 30, 2022 (unaudited) | ||||||
| Total vessel revenues | $ | 25,278,111 | $ | 41,718,547 | $ | 49,747,081 | 79,529,412 | |||
| Operating income | $ | 7,632,559 | $ | 23,519,840 | $ | 10,778,134 | 43,489,330 | |||
| Net income, net of taxes | $ | 8,186,791 | $ | 21,975,782 | $ | 1,676,753 | 40,432,494 | |||
| EBITDA (1) | $ | 16,106,765 | $ | 27,930,009 | $ | 17,721,211 | 52,171,020 | |||
| Adjusted EBITDA(1) | $ | 13,518,604 | $ | 27,930,009 | $ | 22,828,638 | 52,171,020 | |||
| Earnings (basic and diluted) per common share | $ | 0.09 | $ | 0.23 | $ | 0.02 | 0.43 | |||
(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 and six months ended June 30, 2023, and 2022, respectively, that we believe are useful in analyzing trends in our results of operations.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| (Expressed in U.S. dollars except for operational data) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Ownership Days (1)(7) | 1,928 | 1,820 | 3,908 | 3,616 | |||||||||
| Available Days (2)(7) | 1,904 | 1,786 | 3,884 | 3,582 | |||||||||
| Operating Days (3)(7) | 1,890 | 1,757 | 3,869 | 3,538 | |||||||||
| Daily TCE Rate (4) | $ | 12,530 | $ | 23,137 | $ | 12,113 | $ | 21,816 | |||||
| Fleet Utilization (5) | 99 | % | 98 | % | 100 | % | 99 | % | |||||
| Daily vessel operating expenses (6) | $ | 5,399 | $ | 5,927 | $ | 5,547 | $ | 5,783 | |||||
(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 Interim 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 June 30, | Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| REVENUES | |||||||||||||
| Total vessel revenues | $ | 25,278,111 | $ | 41,718,547 | $ | 49,747,081 | $ | 79,529,412 | |||||
| EXPENSES | |||||||||||||
| Voyage expenses (including commissions to related party) | (1,421,455 | ) | (395,112 | ) | (2,698,540 | ) | (1,384,566 | ) | |||||
| Vessel operating expenses | (10,408,844 | ) | (10,787,035 | ) | (21,676,527 | ) | (20,914,440 | ) | |||||
| Management fees - related parties | (1,784,325 | ) | (1,547,000 | ) | (3,615,825 | ) | (3,077,000 | ) | |||||
| Depreciation and amortization | (5,489,084 | ) | (4,329,965 | ) | (11,301,547 | ) | (8,602,774 | ) | |||||
| General and administrative expenses (including related party fees) | (1,670,412 | ) | (1,139,595 | ) | (2,805,076 | ) | (2,061,302 | ) | |||||
| Gain on sale of vessel | 3,128,568 | — | 3,128,568 | — | |||||||||
| Operating income | $ | 7,632,559 | $ | 23,519,840 | $ | 10,778,134 | $ | 43,489,330 | |||||
| Interest and finance costs, net (including related party interest costs) (1) | (2,388,617 | ) | (1,534,781 | ) | (4,677,732 | ) | (2,959,190 | ) | |||||
| Other income / (expenses), net | 2,985,122 | 80,204 | (4,358,470 | ) | 78,916 | ||||||||
| Income taxes | (42,273 | ) | (89,481 | ) | (65,179 | ) | (176,562 | ) | |||||
| Net income and comprehensive income from continuing operations, net of taxes | $ | 8,186,791 | $ | 21,975,782 | $ | 1,676,753 | $ | 40,432,494 | |||||
| Net income and comprehensive income from discontinued operations, net of taxes | $ | — | 5,777,714 | $ | 17,339,332 | $ | 7,297,290 | ||||||
| Net income and comprehensive income | $ | 8,186,791 | 27,753,496 | $ | 19,016,085 | $ | 47,729,784 | ||||||
| Earnings per common share, basic and diluted, continuing operations | $ | 0.09 | $ | 0.23 | $ | 0.02 | $ | 0.43 | |||||
| Earnings per common share, basic and diluted, discontinued operations | $ | — | $ | 0.06 | $ | 0.18 | $ | 0.08 | |||||
| Earnings per common share, basic and diluted, total | $ | 0.09 | $ | 0.29 | $ | 0.20 | $ | 0.50 | |||||
| Weighted average number of common shares outstanding, basic and diluted: | 94,957,401 | 94,610,088 | 94,784,704 | 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)
| June 30, 2023 | December 31, 2022 | ||||
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | $ | 28,574,177 | $ | 100,593,557 | |
| Restricted cash | 2,445,360 | 1,684,269 | |||
| Due from related parties | 5,458,734 | 2,437,354 | |||
| Assets held for sale | 23,048,646 | — | |||
| Other current assets | 71,807,047 | 6,762,778 | |||
| Current assets of discontinued operations | — | 54,763,308 | |||
| Total current assets | 131,333,964 | 166,241,266 | |||
| NON-CURRENT ASSETS: | |||||
| Vessels, net | 302,550,388 | 343,408,466 | |||
| Restricted cash | 7,295,000 | 7,550,000 | |||
| Due from related parties | 3,044,495 | 3,514,098 | |||
| Investment in related party | 117,521,579 | — | |||
| Other non-currents assets | 6,568,582 | 9,491,322 | |||
| Non-Current assets of discontinued operations | — | 102,715,796 | |||
| Total non-current assets | 436,980,044 | 466,679,682 | |||
| Total assets | 568,314,008 | 632,920,948 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Current portion of long-term debt, net | 20,428,579 | 29,170,815 | |||
| Debt related to assets held for sale, net | 10,622,652 | — | |||
| Other current liabilities | 8,997,789 | 15,671,903 | |||
| Current liabilities of discontinued operations | — | 6,519,051 | |||
| Total current liabilities | 40,049,020 | 51,361,769 | |||
| NON-CURRENT LIABILITIES: | + | ||||
| Long-term debt, net | 85,013,187 | 109,600,947 | |||
| Non-Current liabilities of discontinued operations | — | 10,463,172 | |||
| Total non-current liabilities | 85,013,187 | 120,064,119 | |||
| Total liabilities | 125,062,207 | 171,425,888 | |||
| SHAREHOLDERS’ EQUITY | |||||
| Common shares, | 96,490 | 94,610 | |||
| Due from shareholders | (38,475 | ) | — | ||
| Series B Preferred Shares- 12,000 shares issued and outstanding as of June 30, 2023, and December 31, 2022 | 12 | 12 | |||
| Additional paid-in capital | 266,435,404 | 303,658,153 | |||
| Retained Earnings | 176,758,370 | 157,742,285 | |||
| Total shareholders’ equity | 443,251,801 | 461,495,060 | |||
| Total liabilities and shareholders’ equity | $ | 568,314,008 | $ | 632,920,948 | |
CASTOR MARITIME INC.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
| (Expressed in U.S. Dollars) | Six months Ended June 30, | |||||
| 2023 | 2022 | |||||
| Cash Flows provided by Operating Activities of continuing operations: | ||||||
| Net income | $ | 19,016,085 | $ | 47,729,784 | ||
| Less: Net income from discontinued operations, net of taxes | 17,339,332 | 7,297,290 | ||||
| Net income from continuing operations, net of taxes | 1,676,753 | 40,432,494 | ||||
| Adjustments to reconcile net income from continuing operations to net cash provided by Operating Activities: | ||||||
| Depreciation and amortization | 11,301,547 | 8,602,774 | ||||
| Amortization of deferred finance charges | 423,855 | 373,239 | ||||
| Amortization of fair value of acquired time charters | 1,429,137 | — | ||||
| Gain on sale of vessel | (3,128,568 | ) | — | |||
| Realized gain on sale of equity securities | (2,636 | ) | — | |||
| Unrealized loss on equity securities | 5,107,427 | — | ||||
| Dividend income on equity securities | (366,002 | ) | — | |||
| Dividend income from related party | (451,111 | ) | — | |||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable trade, net | 1,151,337 | 2,619,792 | ||||
| Inventories | (149,269 | ) | (617,996 | ) | ||
| Due from/to related parties | (2,524,174 | ) | (1,960,253 | ) | ||
| Prepaid expenses and other assets | 1,029,338 | 427,899 | ||||
| Other deferred charges | 51,138 | 165,899 | ||||
| Accounts payable | (3,819,388 | ) | 2,242,854 | |||
| Accrued liabilities | (793,036 | ) | 14,582 | |||
| Deferred revenue | (1,093,999 | ) | (792,983 | ) | ||
| Dry-dock costs paid | (1,296,552 | ) | (264,053 | ) | ||
| Net Cash provided by Operating Activities from continuing operations | 8,545,797 | 51,244,248 | ||||
| Cash flow (used in) Investing Activities of continuing operations: | ||||||
| Vessel acquisitions (including time charters acquired) and other vessel improvements | (204,763 | ) | (23,043,438 | ) | ||
| Purchase of equity securities | (72,211,450 | ) | — | |||
| Dividends received on equity securities | 366,002 | — | ||||
| Dividends received from related parties | 151,667 | — | ||||
| Proceeds from sale of equity securities | 258,999 | — | ||||
| Net proceeds from sale of vessel | 11,349,705 | — | ||||
| Net cash used in Investing Activities from continuing operations | (60,289,840 | ) | (23,043,438 | ) | ||
| Cash flows (used in)/ provided by Financing Activities of continuing operations: | ||||||
| Gross proceeds from Issuance of common shares | 785,804 | — | ||||
| Common shares issuance expenses | (65,716 | ) | (65,797 | ) | ||
| Proceeds from long-term debt | — | 55,000,000 | ||||
| Repayment of long-term debt | (23,131,200 | ) | (10,354,000 | ) | ||
| Payment of deferred financing costs | (25,178 | ) | (704,558 | ) | ||
| Proceeds received from Toro related to Spin-Off | 2,667,044 | — | ||||
| Net cash (used in)/ provided by Financing Activities from continuing operations | (19,769,246 | ) | 43,875,645 | |||
| Cash flows of discontinued operations: | ||||||
| Net cash provided by Operating Activities from discontinued operations | 20,409,041 | 1,580,903 | ||||
| Net cash used in Investing Activities from discontinued operations | (153,861 | ) | (62,383 | ) | ||
| Net cash used in Financing Activities from discontinued operations | (62,734,774 | ) | (1,700,000 | ) | ||
| Net cash used in from discontinued operations | (42,479,594 | ) | (181,480 | ) | ||
| Net (decrease)/increase in cash, cash equivalents, and restricted cash | (113,992,883 | ) | 71,894,975 | |||
| 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 | $ | 38,314,537 | $ | 115,281,443 | ||
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 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 June 30, | Six Months Ended June 30, | ||||||||||||
| (In U.S. dollars, except for Available Days) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Total vessel revenues | $ | 25,278,111 | $ | 41,718,547 | $ | 49,747,081 | $ | 79,529,412 | |||||
| Voyage expenses -including commissions from related party | (1,421,455 | ) | (395,112 | ) | (2,698,540 | ) | (1,384,566 | ) | |||||
| TCE revenues | $ | 23,856,656 | $ | 41,323,435 | $ | 47,048,541 | $ | 78,144,846 | |||||
| Available Days | 1,904 | 1,786 | 3,884 | 3,582 | |||||||||
| Daily TCE Rate | $ | 12,530 | $ | 23,137 | $ | 12,113 | $ | 21,816 | |||||
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. EBITDA and Adjusted EBITDA as presented below 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 June 30, | Six Months Ended June 30, | |||||||||
| (In U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||
| Net Income from continuing operations, net of taxes | $ | 8,186,791 | $ | 21,975,782 | $ | 1,676,753 | $ | 40,432,494 | ||
| Depreciation and amortization | 5,489,084 | 4,329,965 | 11,301,547 | 8,602,774 | ||||||
| Interest and finance costs, net (including related party interest costs) (1) | 2,388,617 | 1,534,781 | 4,677,732 | 2,959,190 | ||||||
| US source income taxes | 42,273 | 89,481 | 65,179 | 176,562 | ||||||
| EBITDA | $ | 16,106,765 | $ | 27,930,009 | $ | 17,721,211 | $ | 52,171,020 | ||
| Unrealized (gain) / loss on equity securities | (2,588,161 | ) | — | 5,107,427 | — | |||||
| Adjusted EBITDA | $ | 13,518,604 | $ | 27,930,009 | $ | 22,828,638 | $ | 52,171,020 | ||
(1) Includes interest and finance costs and interest income, if any.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. We are including this cautionary statement in connection with this safe harbor legislation. The words “believe”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these forward-looking statements, including these expectations, beliefs or projections. 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, 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, 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. 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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