TOP Ships Announces Record Net Income for the Year Ended December 31, 2021 and Other Corporate Developments
TOP Ships reported unaudited financial results for 2021, revealing total revenues of $56.4 million and net income of $8.6 million, achieving the highest net income since 2008. The earnings per share stood at $0.14 and adjusted EBITDA was $35.2 million. The company also announced the conclusion of its newbuilding program, resulting in a fixed revenue backlog of approximately $361 million. Recent developments include the sale of the M/T Eco Los Angeles and the acquisition of the M/T Eco Oceano Ca, now in a fifteen-year time charter.
- Record net income of $8.6 million, highest since 2008.
- Total revenues reached $56.4 million.
- Fixed revenue backlog of approximately $361 million.
- Delivery of a newbuilding vessel, M/T Eco Oceano Ca, with a long-term charter.
- Only 17% charter coverage for 2025.
ATHENS, Greece, March 14, 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 the year ended December 31, 2021.
For the year ended December 31, 2021, the Company reported:
- Total revenues of
$56.4 million - Net Income of
$8.6 million - Earnings per share of
$0.14 - Adjusted EBITDA of
$35.2 million * - Total Assets of
$330.8 million
Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:
"We are very happy to report record net income for the year ended December 31, 2021, which is the highest reported net income since 2008. Furthermore, we announce the conclusion of our newbuilding program following which, as of today, our fixed revenue backlog is about
Year | Time Charter Coverage | ||
2022 | 100 | % | |
2023 | 100 | % | |
2024 | 76 | % | |
2025 | 17 | % | |
2026+ | 10 | % |
Recent Developments
On February 28 we concluded the previously announced sale of the M/T Eco Los Angeles to an unaffiliated party and the related secured financing for the vessel was prepaid in full. The net proceeds after senior debt repayment were used to repay
On March 4, 2022, we took delivery of the very high specification, scrubber fitted, 157,000 dwt newbuilding Suezmax tanker vessel M/T Eco Oceano Ca constructed at the Hyundai Samho shipyard in South Korea and consummated the previously announced sale and leaseback of the vessel with a major international financier for total gross proceeds of
As of the date of this earnings release, there are currently 4,763,000 Series F Preferred Shares issued and outstanding.
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 CONSOLIDATED STATEMENTS OF COMPREHENSIVE | |||||||
(LOSS)/INCOME FOR THE YEARS ENDED DECEMBER 31, 2019, 2020 and 2021 | |||||||
(Expressed in thousands of U.S. Dollars - except share and per share data) | |||||||
2019 | 2020 | 2021 | |||||
Revenues (including | 66,088 | 60,222 | 56,367 | ||||
EXPENSES: | |||||||
Voyage expenses (including | 3,038 | 1,994 | 1,317 | ||||
Operating lease expense | 7,054 | 755 | 10,840 | ||||
Vessel operating expenses (including | 22,786 | 21,024 | 15,679 | ||||
Dry-docking costs | 399 | 356 | 361 | ||||
Vessel depreciation | 12,392 | 13,174 | 7,670 | ||||
Management fees-related parties | 2,443 | 5,627 | 2,596 | ||||
General and administrative expenses (including | 1,730 | 1,932 | 1,943 | ||||
Other operating loss | - | 4,800 | - | ||||
Loss on sale of vessels | - | 12,355 | - | ||||
Impairment on vessels | 12,310 | - | 1,160 | ||||
Operating income/(loss) | 3,936 | (1,795 | ) | 14,801 | |||
OTHER EXPENSES: | |||||||
Interest and finance costs (including | (18,077 | ) | (20,956 | ) | (6,998 | ) | |
Gain/(Loss) on derivative financial instruments | 1,601 | (814 | ) | 66 | |||
Interest income | 133 | 34 | - | ||||
Equity gain in unconsolidated joint ventures | 778 | 713 | 747 | ||||
Impairment on unconsolidated joint ventures | (3,144 | ) | - | - | |||
Total other expenses, net | (18,709 | ) | (21,023 | ) | (6,185 | ) | |
Net (loss) / income | (14,773 | ) | (22,818 | ) | 8,616 | ||
Less: Deemed dividend for beneficial conversion feature of Series E Shares | (9,339 | ) | (1,067 | ) | (900 | ) | |
Less: Deemed dividend equivalents on Series E Shares related to redemption value | (4,227 | ) | (3,099 | ) | (437 | ) | |
Less: Series E Shares Dividend | (2,650 | ) | (1,796 | ) | (1,883 | ) | |
Net (loss) / income attributable to common shareholders | (30,989 | ) | (28,780 | ) | 5,396 | ||
(Loss) / Earnings per common share, basic and diluted | (264.63 | ) | (1.22 | ) | 0.14 | ||
Other comprehensive income | |||||||
Effective portion of changes in fair value of interest swap contracts | (1,361 | ) | - | - | |||
Total other comprehensive (loss) / gain | (32,350 | ) | (28,780 | ) | 5,396 | ||
TOP SHIPS INC. | |||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||
DECEMBER 31, 2020 AND 2021 | |||||
(Expressed in thousands of U.S. Dollars - except share and per share data) | |||||
December 31, | December 31, | ||||
2020 | 2021 | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 19,328 | 2,370 | |||
Trade accounts receivable | - | 76 | |||
Prepayments and other | 904 | 581 | |||
Inventories | 514 | 671 | |||
Vessels held for sale | 24,340 | 71,636 | |||
Total current assets | 45,086 | 75,334 | |||
FIXED ASSETS: | |||||
Advances for vessels under construction | 31,654 | 30,579 | |||
Vessels, net | 136,292 | 156,585 | |||
Right of use assets from operating leases | 45,222 | 37,279 | |||
Other fixed assets, net | 548 | 534 | |||
Total fixed assets | 213,716 | 224,977 | |||
OTHER NON CURRENT ASSETS: | |||||
Restricted cash | 4,000 | 4,000 | |||
Investments in unconsolidated joint ventures | 28,230 | 24,477 | |||
Deposit asset | 2,000 | 2,000 | |||
Total non-current assets | 34,230 | 30,477 | |||
Total assets | 293,032 | 330,788 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
CURRENT LIABILITIES: | |||||
Current portion of long-term debt | 5,324 | 7,205 | |||
Debt related to vessels held for sale | - | 53,202 | |||
Due to related parties | 5,159 | 29,755 | |||
Accounts payable | 2,544 | 2,308 | |||
Accrued liabilities | 959 | 1,145 | |||
Unearned revenue | 2,074 | 3,658 | |||
Current portion of derivative financial instruments | 66 | - | |||
Current portion of Operating lease liabilities | 9,288 | 9,815 | |||
Total current liabilities | 25,414 | 107,088 | |||
NON-CURRENT LIABILITIES: | |||||
Non-current portion of long term debt | 99,295 | 90,163 | |||
Non-current portion of Operating lease liabilities | 33,805 | 23,948 | |||
Other non-current liabilities | 300 | 225 | |||
Total non-current liabilities | 133,400 | 114,336 | |||
COMMITMENTS AND CONTINGENCIES | - | - | |||
Total liabilities | 158,814 | 221,424 | |||
MEZZANINE EQUITY: | |||||
Preferred stock; 11,264 and 13,452 Series E Shares issued and outstanding at December 31, 2020 and 2021 with | 13,517 | 16,142 | |||
Total mezzanine equity | 13,517 | 16,142 | |||
STOCKHOLDERS’ EQUITY: | |||||
Preferred stock, | 1 | 1 | |||
Common stock, | 398 | 398 | |||
Additional paid-in capital | 465,672 | 429,577 | |||
Accumulated deficit | (345,370 | ) | (336,754 | ) | |
Total stockholders’ equity | 120,701 | 93,222 | |||
Total liabilities, mezzanine equity and stockholders’ equity | 293,032 | 330,788 | |||
*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
(Expressed in thousands of U.S. Dollars) | 2019 | 2020 | 2021 | ||||||
Net (loss)/income | (14,773 | ) | (22,818 | ) | 8,616 | ||||
Add: Operating lease expense | 7,054 | 755 | 10,840 | ||||||
Add: Vessel depreciation | 12,392 | 13,174 | 7,670 | ||||||
Add: Impairment on vessel | 12,310 | - | 1,160 | ||||||
Add: Impairment on unconsolidated joint ventures | 3,144 | - | - | ||||||
Add: Interest and finance costs | 18,077 | 20,956 | 6,998 | ||||||
Add: Loss/(gain) on derivative financial instruments | (1,601 | ) | 814 | (66 | ) | ||||
Add: Loss on sale of vessels | - | 12,355 | - | ||||||
Add: Other operating loss (Time Charter Termination Fees) | - | 4,800 | - | ||||||
Less: Interest income | (133 | ) | (34 | ) | - | ||||
Adjusted EBITDA | 36,470 | 30,002 | 35,218 | ||||||
FAQ
What were the total revenues for TOP Ships in 2021?
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