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TOP Ships Announces Record Net Income for the Year Ended December 31, 2021 and Other Corporate Developments

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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.

Positive
  • 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.
Negative
  • 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 $361 million and our charter coverage is as per below table:"

YearTime Charter Coverage
 
2022100% 
2023100% 
202476% 
202517% 
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 $9 million of funds drawn down under the unsecured credit facility entered into in January 2022 with Central Mare Inc, a company affiliated with our President, CEO and Director Evangelos J. Pistiolis, which is now terminated.

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 $48.2 million. The vessel has commenced its previously announced fifteen-year time charter employment.

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)   
  201920202021
 Revenues (including $1,311, $0 and $0 respectively, from related party)66,088 60,222 56,367 
     
EXPENSES:   
 Voyage expenses (including $829, $761 and $705 respectively, to related party)3,038 1,994 1,317 
 Operating lease expense7,054 755 10,840 
 Vessel operating expenses (including $247, $60 and $17 respectively, to related party)22,786 21,024 15,679 
 Dry-docking costs399 356 361 
 Vessel depreciation12,392 13,174 7,670 
 Management fees-related parties2,443 5,627 2,596 
 General and administrative expenses (including $360, $360 and $360 respectively, to related party)1,730 1,932 1,943 
 Other operating loss- 4,800 - 
 Loss on sale of vessels- 12,355 - 
 Impairment on vessels12,310 - 1,160 
 Operating income/(loss)3,936 (1,795)14,801 
     
OTHER EXPENSES:   
 Interest and finance costs (including $948, $0 and $0 respectively, to related party)(18,077)(20,956)(6,998)
 Gain/(Loss) on derivative financial instruments1,601 (814)66 
 Interest income133 34 - 
 Equity gain in unconsolidated joint ventures778 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 equivalents19,328  2,370 
Trade accounts receivable-  76 
Prepayments and other904  581 
Inventories514  671 
Vessels held for sale24,340  71,636 
Total current assets45,086  75,334 
    
FIXED ASSETS:    
    
Advances for vessels under construction31,654  30,579 
Vessels, net136,292  156,585 
Right of use assets from operating leases45,222  37,279 
Other fixed assets, net548  534 
Total fixed assets213,716  224,977 
    
OTHER NON CURRENT ASSETS:   
    
Restricted cash4,000  4,000 
Investments in unconsolidated joint ventures28,230  24,477 
Deposit asset2,000  2,000 
Total non-current assets34,230  30,477 
    
Total assets293,032  330,788 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
    
CURRENT LIABILITIES:   
    
Current portion of long-term debt5,324  7,205 
Debt related to vessels held for sale-  53,202 
Due to related parties5,159  29,755 
Accounts payable2,544  2,308 
Accrued liabilities959  1,145 
Unearned revenue2,074  3,658 
Current portion of derivative financial instruments66  - 
Current portion of Operating lease liabilities9,288  9,815 
Total current liabilities25,414  107,088 
    
NON-CURRENT LIABILITIES:   
    
Non-current portion of long term debt99,295  90,163 
Non-current portion of Operating lease liabilities33,805  23,948 
Other non-current liabilities300  225 
Total non-current liabilities133,400  114,336 
    
COMMITMENTS AND CONTINGENCIES-  - 
    
Total liabilities158,814  221,424 
    
MEZZANINE EQUITY:   
Preferred stock; 11,264 and 13,452 Series E Shares issued and outstanding at December 31, 2020 and 2021 with $0.01 par value13,517  16,142 
Total mezzanine equity13,517  16,142 
    
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, 2020 and 20211  1 
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 39,831,972 shares issued and outstanding at December 31, 2020 and 2021398  398 
Additional paid-in capital465,672  429,577 
Accumulated deficit(345,370) (336,754)
Total stockholders’ equity120,701  93,222 
    
Total liabilities, mezzanine equity and stockholders’ equity293,032  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?

TOP Ships reported total revenues of $56.4 million for the year ended December 31, 2021.

What is the net income of TOP Ships for 2021?

The net income for TOP Ships in 2021 was $8.6 million.

What is the earnings per share for TOP Ships in 2021?

Earnings per share for TOP Ships in 2021 were $0.14.

What is the fixed revenue backlog for TOP Ships?

TOP Ships has a fixed revenue backlog of about $361 million.

What percentage of charter coverage does TOP Ships have for 2025?

TOP Ships has a charter coverage of 17% for 2025.

TOP Ships Inc.

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