TOP Ships Announces a 412% Increase in Net Income for the Six Months Ended June 30

Rhea-AI Summary

TOP Ships Inc. reported strong financial results for the six months ending June 30, 2022. Total revenues reached $38.8 million, marking a 53% increase from the first half of 2021. Net income surged by 412% to $8.6 million, the highest for a six-month period since 2005. Adjusted EBITDA climbed to $26.9 million, an 88% increase. The company's total assets increased by 44% to $475.4 million. Additionally, the fixed revenue backlog is approximately $278.5 million with 100% charter coverage for 2022 and 2023.

Positive

• Total revenues of $38.8 million, a 53% increase from H1 2021.
• Net income of $8.6 million, up 412% year-over-year.
• Adjusted EBITDA increased to $26.9 million, up 88% from H1 2021.
• Total assets rose to $475.4 million, a 44% increase since December 31, 2021.
• Fixed revenue backlog of approximately $278.5 million.

Negative

• None.

ATHENS, Greece, Sept. 28, 2022 (GLOBE NEWSWIRE) -- TOP Ships Inc. (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today its unaudited financial results for six months ended June 30, 2022.

For the six months ended June 30, 2022, the Company reported:

• Total revenues of $38.8 million (53% increase from 1^st half 2021)
• Net Income of $8.6 million (412% increase from 1^st half 2021)
• Adjusted EBITDA of $26.9 million* (88% increase from 1^st half 2021)
• Total Assets of $475.4 million (44% increase from December 31, 2021)

Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:

“We are very happy to report a dramatic year-on-year increase in net income for the six months ended June 30, 2022, which represents our highest reported net income for a six month period since 2005. Furthermore, as of June 30, 2022, our fixed revenue backlog is about $278.5 million and our charter coverage is as per below table:

Year	Time Charter Coverage
2022 (remainder)	100%
2023	100%
2024	76%
2025	17%
2026+	10%

”

About TOP Ships Inc.

TOP Ships Inc. is an international ship-owning company.

For more information about TOP Ships Inc., visit its website: www.topships.org.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. 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.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “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 expectations, beliefs or projections.

Contact:

Alexandros Tsirikos
Chief Financial Officer
TOP Ships Inc.
Tel: +30 210 812 8107
Email: atsirikos@topships.org

TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2022
(Expressed in thousands of U.S. Dollars - except share and per share data)
			Six Months Ended
			June 30,			June 30,
			2021			2022
REVENUES:
	Time charter revenues	$	25,310		$	36,060
	Time charter revenues from related parties		-			2,786
	Total revenues		25,310			38,846
EXPENSES:
	Voyage expenses		608			875
	Operating lease expenses		5,378			5,378
	Other vessel operating expenses		7,919			9,705
	Vessel depreciation		3,339			6,114
	Management fees-related parties		1,661			1,030
	Dry-docking costs		26			-
	Gain on sale of vessels		-			(78	)
	Impairment on vessels		1,160			-
	General and administrative expenses		963			691
	Operating income		4,256			15,131
OTHER INCOME (EXPENSES):
	Interest and finance costs		(2,837	)		(6,927	)
	Gain on derivative financial instruments		66			-
	Equity gains in unconsolidated joint ventures		197			401
	Total other expenses, net		(2,574	)		(6,526	)
Net income and comprehensive income			1,682			8,605
Less: Deemed dividend equivalents on Series F Shares related to redemption value			-			(14,400	)
Less: Dividends of preferred shares			(915	)		(7,322	)
Net income/(loss) and comprehensive income/(loss) attributable to common shareholders			767			(13,117	)

TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2021 AND JUNE 30, 2022
(Expressed in thousands of U.S. Dollars - except share and per share data)
	December 31,			June 30,
	2021			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	2,370			14,267
Trade accounts receivable	76			293
Prepayments and other	581			1,061
Inventories	671			936
Vessels held for sale	71,636			-
Total current assets	75,334			16,557
FIXED ASSETS:
Advances for vessels under construction	30,579			-
Vessels, net	156,585			396,234
Right of use assets from operating leases	37,279			33,058
Other fixed assets, net	534			530
Total fixed assets	224,977			429,822
OTHER NON CURRENT ASSETS:
Restricted cash	4,000			4,000
Investments in unconsolidated joint ventures	24,477			23,027
Deposit asset	2,000			2,000
Total non-current assets	30,477			29,027
Total assets	330,788			475,406
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	7,205			14,949
Debt related to vessels held for sale	53,202			-
Due to related parties	29,755			1,787
Accounts payable	2,308			2,338
Accrued liabilities	1,145			1,736
Unearned revenue	3,658			4,923
Current portion of Operating lease liabilities	9,815			9,213
Total current liabilities	107,088			34,946
NON-CURRENT LIABILITIES:
Non-current portion of long term debt	90,163			229,509
Non-current portion of Operating lease liabilities	23,948			19,642
Other non-current liabilities	225			175
Total non-current liabilities	114,336			249,326
COMMITMENTS AND CONTINGENCIES	-			-
Total liabilities	221,424			284,272
MEZZANINE EQUITY:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; 13,452 Series E Shares issued and outstanding at December 31, 2021 and 13,452 Series E Shares and 7,200,000 Series F Shares issued and outstanding at June 30, 2022	-			72
Preferred stock, Paid-in capital in excess of par	16,142			102,470
Total mezzanine equity	16,142			102,542
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; of which 100,000 Series D shares were outstanding at December 31, 2021 and June 30, 2022	1			1
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 1,991,598 shares issued and outstanding at December 31, 2021 and 2,356,041 shares issued and outstanding at June 30, 2022	19			23
Additional paid-in capital	429,956			416,717
Accumulated deficit	(336,754	)		(328,149	)
Total stockholders’ equity	93,222			88,592
Total liabilities, mezzanine equity and stockholders’ equity	330,788			475,406

*Non-US GAAP Measures

This report describes Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a “Non-US GAAP” measure). We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, other operating loss, operating lease expenses, vessel impairments, gains on sale of vessels and gains/losses on derivative financial instruments.

Adjusted EBITDA is a non-U.S. GAAP financial measure that is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-U.S. GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. This is achieved by excluding the potentially disparate effects between periods of interest, gain/loss on financial instruments, taxes, depreciation and amortization, other operating losses, operating lease expenses, gains on sale of vessels and vessel impairments, and which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods and other items that the Company believes are not indicative of the ongoing performance of its core operations.

This Non-U.S. GAAP measure should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our definition of Adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries. Adjusted EBITDA does not represent and should not be considered as an alternative to operating income or cash flow from operations, as determined by U.S. GAAP.

Reconciliation of Net (Loss) / Income to Adjusted EBITDA

		Six months ended June 30,
(Expressed in thousands of U.S. Dollars)		2021	2022
Net (Loss) / Income		1,682	8,605
	Add: Operating lease expenses	5,378	5,378
	Add: Vessel depreciation	3,339	6,114
	Add: Impairment on vessels	1,160	-
	Add: Interest and finance costs	2,837	6,927
	Add: Loss / (Gain) on financial instruments	(66)	-
	Less: Gain on sale of vessels	-	(78)
Adjusted EBITDA		14,330	26,946

FAQ

What were TOP Ships' revenues for the first half of 2022?

TOP Ships reported total revenues of $38.8 million for the first half of 2022.

How much did TOP Ships' net income increase in 2022?

Net income for TOP Ships increased by 412% to $8.6 million in the first half of 2022.

What is the adjusted EBITDA for TOP Ships in H1 2022?

The adjusted EBITDA for TOP Ships in the first half of 2022 was $26.9 million.

What is the fixed revenue backlog for TOP Ships?

TOP Ships has a fixed revenue backlog of approximately $278.5 million.

What is the charter coverage for TOP Ships in 2022 and 2023?

TOP Ships has 100% charter coverage for both 2022 and 2023.