Toro Corp. Reports Net Income of $1.0 Million for the Three Months Ended September 30, 2024 and $24.2 Million for the Nine months Ended September 30, 2024
Toro Corp (NASDAQ: TORO) reported financial results for Q3 2024, with total vessel revenues from continuing operations at $5.3 million, down 18.5% from Q3 2023. Net income was $1.0 million, a 97.2% decrease from $35.1 million in Q3 2023. For the nine months ended September 30, 2024, the company reported total vessel revenues of $17.2 million, up 14.7% year-over-year, and net income of $24.2 million. The company maintained a strong cash position of $192.1 million as of September 30, 2024, up from $155.6 million at the end of 2023. The company also sold M/T Wonder Sirius for $33.8 million, resulting in a $19.6 million capital gain.
Toro Corp (NASDAQ: TORO) ha riportato i risultati finanziari per il terzo trimestre del 2024, con ricavi totali da navi in attività continuativa pari a 5,3 milioni di dollari, in calo dell'18,5% rispetto al terzo trimestre del 2023. L'utile netto si è attestato a 1,0 milione di dollari, con una diminuzione del 97,2% rispetto ai 35,1 milioni di dollari del terzo trimestre del 2023. Nei nove mesi conclusi il 30 settembre 2024, l'azienda ha registrato ricavi totali da navi pari a 17,2 milioni di dollari, con un aumento del 14,7% rispetto all'anno precedente, e un utile netto di 24,2 milioni di dollari. L'azienda ha mantenuto una solida posizione di liquidità di 192,1 milioni di dollari al 30 settembre 2024, in crescita rispetto ai 155,6 milioni di dollari della fine del 2023. L'azienda ha inoltre venduto la M/T Wonder Sirius per 33,8 milioni di dollari, generando un guadagno in conto capitale di 19,6 milioni di dollari.
Toro Corp (NASDAQ: TORO) reportó resultados financieros para el tercer trimestre de 2024, con ingresos totales de los buques en operaciones continuas de 5.3 millones de dólares, una disminución del 18.5% en comparación con el tercer trimestre de 2023. Los ingresos netos fueron de 1.0 millones de dólares, con una disminución del 97.2% respecto a los 35.1 millones de dólares en el tercer trimestre de 2023. Para los nueve meses que terminaron el 30 de septiembre de 2024, la empresa reportó ingresos totales de 17.2 millones de dólares, un aumento del 14.7% interanual, y un ingreso neto de 24.2 millones de dólares. La empresa mantuvo una sólida posición de efectivo de 192.1 millones de dólares al 30 de septiembre de 2024, en comparación con los 155.6 millones de dólares al final de 2023. Además, la empresa vendió el M/T Wonder Sirius por 33.8 millones de dólares, resultando en una ganancia de capital de 19.6 millones de dólares.
토로 코퍼레이션 (NASDAQ: TORO)은 2024년 3분기 재무 결과를 발표했으며, 지속 운영에서 발생한 선박 수익 총액은 530만 달러로 2023년 3분기 대비 18.5% 감소했습니다. 순이익은 100만 달러로, 2023년 3분기의 3,510만 달러에서 97.2% 감소했습니다. 2024년 9월 30일로 종료된 9개월 동안, 회사는 총 1,720만 달러의 선박 수익을 보고했으며, 이는 전년 대비 14.7% 증가한 것이며, 순이익은 2,420만 달러입니다. 회사는 2024년 9월 30일 기준으로 1억 9,210만 달러의 강력한 현금 보유량을 유지하고 있으며, 이는 2023년 말의 1억 5,560만 달러에서 증가한 수치입니다. 또한 회사는 M/T Wonder Sirius를 3,380만 달러에 판매하여 1,960만 달러의 자본 이익을 얻었습니다.
Toro Corp (NASDAQ: TORO) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec des revenus totaux provenant des opérations continues s'élevant à 5,3 millions de dollars, soit une diminution de 18,5% par rapport au troisième trimestre 2023. Le revenu net s'est établi à 1,0 million de dollars, ce qui représente une baisse de 97,2% par rapport à 35,1 millions de dollars au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, l'entreprise a déclaré des revenus totaux de 17,2 millions de dollars, soit une augmentation de 14,7% par rapport à l'année précédente, et un revenu net de 24,2 millions de dollars. L'entreprise a maintenu une solide position de trésorerie de 192,1 millions de dollars au 30 septembre 2024, en hausse par rapport à 155,6 millions de dollars à la fin de 2023. L'entreprise a également vendu le M/T Wonder Sirius pour 33,8 millions de dollars, entraînant un gain en capital de 19,6 millions de dollars.
Toro Corp (NASDAQ: TORO) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit Gesamtumsätzen aus fortgeführten Tätigkeiten in Höhe von 5,3 Millionen Dollar, was einem Rückgang von 18,5% im Vergleich zum 3. Quartal 2023 entspricht. Der Nettogewinn betrug 1,0 Million Dollar, was einem Rückgang von 97,2% gegenüber 35,1 Millionen Dollar im 3. Quartal 2023 entspricht. Für die neun Monate bis zum 30. September 2024 meldete das Unternehmen Gesamteinnahmen von 17,2 Millionen Dollar, ein Anstieg von 14,7% im Jahresvergleich, und einen Nettogewinn von 24,2 Millionen Dollar. Das Unternehmen hielt zum 30. September 2024 eine starke Liquiditätsposition von 192,1 Millionen Dollar, ein Anstieg gegenüber 155,6 Millionen Dollar Ende 2023. Zudem verkaufte das Unternehmen M/T Wonder Sirius für 33,8 Millionen Dollar, was zu einem Kapitalgewinn von 19,6 Millionen Dollar führte.
- Strong cash position of $192.1 million, up from $155.6 million in December 2023
- Nine-month vessel revenues increased 14.7% to $17.2 million
- Capital gain of $19.6 million from vessel sale
- No outstanding debt
- Daily TCE Rate increased to $11,426 in Q3 2024 from $10,081 in Q3 2023
- Q3 vessel revenues decreased 18.5% to $5.3 million
- Q3 net income declined 97.2% to $1.0 million
- EBITDA from continuing operations decreased to -$0.1 million in Q3 2024 from $0.5 million in Q3 2023
- Operating loss widened to $2.0 million in Q3 2024 from $1.1 million in Q3 2023
Insights
The Q3 2024 results show mixed performance. While
Key positives include robust LPG carrier markets, improved Daily TCE rates at
The sale of M/T Wonder Sirius for
LIMASSOL, Cyprus, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Toro Corp. (NASDAQ: TORO), (“Toro”, or the “Company”), an international energy transportation services company, today announced its results for the three months and the nine months ended September 30, 2024.
Highlights of the Third Quarter Ended September 30, 2024:
- Total vessel revenues from continuing operations:
$5.3 million , as compared to$6.5 million for the three months ended September 30, 2023, or a18.5% decrease; - Net income from continuing operations:
$1.0 million , as compared to$0.2 million for the three months ended September 30, 2023, or a400.0% increase; - Net income:
$1.0 million , as compared to$35.1 million for the three months ended September 30, 2023, or a97.2% decrease; - Loss per common share, basic from continuing operations:
$(0.01) per share, as compared to$(0.05) per share for the three months ended September 30, 2023; - EBITDA(1) from continuing operations:
$(0.1) million , as compared to$0.5 million for the three months ended September 30, 2023; and - Cash and restricted cash of
$192.1 million as of September 30, 2024, as compared to$155.6 million as of December 31, 2023.
Highlights of the Nine months Ended September 30, 2024:
- Total vessel revenues from continuing operations:
$17.2 million , as compared to$15.0 million for the nine months ended September 30, 2023, or a14.7% increase; - Net income from continuing operations:
$4.5 million , as compared to$1.9 million for the nine months ended September 30, 2023, or a136.8% increase; - Net income:
$24.2 million , as compared to$112.4 million for the nine months ended September 30, 2023, or a78.5% decrease; - Loss per common share, basic from continuing operations:
$(0.03) per share, as compared to$(0.04) per share for the nine months ended September 30, 2023; - EBITDA(1) from continuing operations:
$1.7 million , as compared to$3.0 million for the nine months ended September 30, 2023; - Delivery of the M/T Wonder Sirius to its new owners on January 24, 2024, after entering into an agreement to sell the vessel on January 8, 2024 for
$33.8 million , resulting in a capital gain of$19.6 million ; and - Repurchased 644,556 common shares at an aggregate cost of
$3.7 million under the Company’s share repurchase program, which was approved on November 6, 2023 and expired on March 31, 2024.
(1) EBITDA is not a recognized measure under United States generally accepted accounting principles (“U.S. GAAP”). Please refer to Appendix B for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer of the Company, commented:
“During the third quarter of 2024, the markets for LPG carriers remained robust and we enjoyed positive cash flows.
We maintain a strong balance sheet with significant cash reserves and no outstanding debt and as we move forward, we continue to seek opportunities that will further drive our growth and strengthen our position in the market.”
Earnings Commentary:
Third quarter ended September 30, 2024, and 2023 Results
Total vessel revenues, net of charterers’ commissions, from continuing operations decreased to
Voyage expenses from continuing operations for our fleet decreased to
The decrease in Vessel operating expenses from continuing operations by
Depreciation expenses from continuing operations for our fleet amounted to
General and administrative expenses from continuing operations in the three months ended September 30, 2024, amounted to
Management fees from continuing operations decreased to
Interest and finance costs, net, from continuing operations amounted to
Recent Financial Developments Commentary:
Equity update
On October 15, 2024, the Company paid to Castor Maritime Inc. (“Castor”) a dividend amounting to
As of November 11, 2024, we had 19,093,853 common shares issued and outstanding.
Liquidity/ Financing/Cash flow update
Our consolidated cash position (including restricted cash from discontinued operations) increased by
Fleet Employment Status (as of November 11, 2024): During the three months ended September 30, 2024, we operated on average 5.0 vessels earning a Daily TCE Rate(1) of
(1) 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.
| Handysize Tankers | ||||||||
| Vessel Name | Type | DWT | Year Built | Country of Construction | Type of Employment | Gross Charter Rate | Estimated Redelivery Date | |
| Earliest | Latest | |||||||
| Wonder Mimosa | Handysize | 36,718 | 2006 | Korea | Tanker Pool(1) | N/A | N/A | N/A |
| LPG Carriers | ||||||||
| Type | DWT | Year Built | Country of Construction | Type of Employment | Gross Charter Rate | Estimated Redelivery Date | ||
| Earliest | Latest | |||||||
| Dream Terrax | LPG carrier 5,000 cbm | 4,743 | 2020 | Japan | Time Charter period(2) | Aug-25 | Aug-26 | |
| Dream Arrax | LPG carrier 5,000 cbm | 4,753 | 2015 | Japan | Time Charter period(3) | May-25 | May-26 | |
| Dream Syrax | LPG carrier 5,000 cbm | 5,158 | 2015 | Japan | Time Charter period(4) | Dec-25 | Jan-27 | |
| Dream Vermax | LPG carrier 5,000 cbm | 5,155 | 2015 | Japan | Time Charter period(5) | Mar-25 | Mar-26 | |
(1) The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels.
(2) The vessel has been fixed under a time charter period contract of twelve months at
(3) The vessel has been fixed under a time charter period contract of twelve months at
(4) The vessel has been fixed under a time charter period contract of twelve months at
(5) The vessel has been fixed under a time charter period contract of twelve months at
Financial Results (Continuing Operations) Overview:
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three and nine months ended September 30, 2024 and 2023, respectively:
| Three Months Ended | Nine months Ended | ||||||||||||||
| (Expressed in U.S. dollars) | September 30, 2024 (unaudited) | September 30, 2023 (unaudited) | September 30, 2024 (unaudited) | September 30, 2023 (unaudited) | |||||||||||
| Total vessel revenues | $ | 5,318,237 | $ | 6,502,491 | $ | 17,165,481 | $ | 15,007,524 | |||||||
| Operating (loss)/ income | $ | (2,049,487 | ) | $ | (1,050,119 | ) | $ | (3,823,674 | ) | $ | 444,119 | ||||
| Net income and comprehensive income | $ | 974,043 | $ | 216,416 | $ | 4,514,076 | $ | 1,883,930 | |||||||
| EBITDA(1) | $ | (119,508 | ) | $ | 542,961 | $ | 1,676,415 | $ | 3,008,768 | ||||||
| Loss per common share, basic and diluted | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||
(1) EBITDA is not recognized measure under U.S. GAAP. Please refer to Appendix B of this release for the definition and reconciliation of this measure 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 (Continuing Operations):
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three and nine months ended September 30, 2024 and 2023, respectively, that we believe are useful in analyzing trends in our results of operations.
| Three Months Ended September 30, | Nine months Ended September 30, | ||||||||||||||
| (Expressed in U.S. dollars except for operational data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Ownership Days(1)(7) | 460 | 500 | 1,370 | 915 | |||||||||||
| Available Days(2)(7) | 446 | 500 | 1,330 | 872 | |||||||||||
| Operating Days(3)(7) | 446 | 453 | 1,330 | 825 | |||||||||||
| Daily TCE Rate(4) | $ | 11,426 | $ | 10,081 | $ | 11,930 | $ | 15,066 | |||||||
| Fleet Utilization(5) | 100 | % | 91 | % | 100 | % | 95 | % | |||||||
| Daily vessel operating expenses(6) | $ | 4,964 | $ | 6,133 | $ | 4,993 | $ | 6,824 | |||||||
(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
TORO CORP.
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 September 30, | Nine months Ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUES | |||||||||||||||
| Time charter revenues | 3,877,383 | 605,850 | 10,394,268 | 605,850 | |||||||||||
| Voyage charter revenues | (350 | ) | 2,153,419 | 1,310,312 | 2,541,506 | ||||||||||
| Pool revenues | 1,441,204 | 3,743,222 | 5,460,901 | 11,860,168 | |||||||||||
| Total vessel revenues | $ | 5,318,237 | $ | 6,502,491 | $ | 17,165,481 | $ | 15,007,524 | |||||||
| EXPENSES | |||||||||||||||
| Voyage expenses (including commissions to related party) | (222,346 | ) | (1,462,097 | ) | (1,299,007 | ) | (1,869,622 | ) | |||||||
| Vessel operating expenses | (2,283,348 | ) | (3,066,655 | ) | (6,839,757 | ) | (6,243,724 | ) | |||||||
| General and administrative expenses (including related party fees) | (3,096,911 | ) | (1,235,585 | ) | (7,795,087 | ) | (3,070,945 | ) | |||||||
| Management fees - related parties | (492,660 | ) | (573,528 | ) | (1,438,150 | ) | (1,183,878 | ) | |||||||
| Depreciation and amortization | (1,272,459 | ) | (1,214,745 | ) | (3,591,785 | ) | (2,195,236 | ) | |||||||
| Provision for doubtful accounts | — | — | (25,369 | ) | — | ||||||||||
| Operating (loss)/income | $ | (2,049,487 | ) | $ | (1,050,119 | ) | $ | (3,823,674 | ) | $ | 444,119 | ||||
| Interest and finance costs, net(1) | 2,343,513 | 903,634 | 6,429,446 | 1,109,074 | |||||||||||
| Other income/(expenses), net(2) | 18,631 | (3,609 | ) | 5,526 | (12,531 | ) | |||||||||
| Dividend income from related party | 638,889 | 381,944 | 1,902,778 | 381,944 | |||||||||||
| Income taxes | 22,497 | (15,434 | ) | — | (38,676 | ) | |||||||||
| Net income and comprehensive income from continuing operations, net of taxes | $ | 974,043 | $ | 216,416 | $ | 4,514,076 | $ | 1,883,930 | |||||||
| Net income and comprehensive income from discontinued operations, net of taxes | $ | 1,306 | $ | 34,852,942 | $ | 19,715,401 | $ | 110,526,415 | |||||||
| Net income and comprehensive income | $ | 975,349 | $ | 35,069,358 | $ | 24,229,477 | $ | 112,410,345 | |||||||
| Dividend on Series A Preferred Shares | (357,778 | ) | (357,778 | ) | (1,065,556 | ) | (808,889 | ) | |||||||
| Deemed dividend on Series A Preferred Shares | (773,739 | ) | (745,637 | ) | (2,283,440 | ) | (1,676,671 | ) | |||||||
| Net (loss)/income attributable to common shareholders | $ | (156,168 | ) | $ | 33,965,943 | $ | 20,880,481 | $ | 109,924,785 | ||||||
| Loss per common share, basic and diluted, continuing operations | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||
| Earnings per common share, basic and diluted, discontinued operations | $ | 0.0001 | $ | 1.94 | $ | 1.14 | $ | 6.82 | |||||||
| (Loss)/Earnings per common share, basic and diluted, total | $ | (0.009 | ) | $ | 1.89 | $ | 1.11 | $ | 6.78 | ||||||
| Weighted average number of common shares outstanding, basic and diluted: | 17,112,114 | 17,961,009 | 17,314,461 | 16,203,797 | |||||||||||
(1) Includes interest and finance costs and interest income, if any.
(2) Includes aggregated amounts for foreign exchange gains/(losses), gain/(loss) on equity securities and other income, as applicable in each period.
TORO CORP.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in U.S. Dollars—except for number of share data)
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 192,116,731 | $ | 151,758,218 | |||
| Due from related parties | 773,088 | 1,018,883 | |||||
| Other current assets | 1,397,337 | 2,688,719 | |||||
| Current assets of discontinued operations | 952,316 | 9,669,748 | |||||
| Total current assets | 195,239,472 | 165,135,568 | |||||
| NON-CURRENT ASSETS: | |||||||
| Vessels, net | 73,847,099 | 77,025,694 | |||||
| Due from related parties | 1,590,501 | 1,590,501 | |||||
| Investment in related party | 50,569,444 | 50,541,667 | |||||
| Other non-currents assets | 4,198,465 | 536,469 | |||||
| Non-current assets of discontinued operations | — | 13,274,231 | |||||
| Total non-current assets | 130,205,509 | 142,968,562 | |||||
| Total assets | 325,444,981 | 308,104,130 | |||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Due to related parties | 330,555 | 315,000 | |||||
| Other current liabilities | 3,184,692 | 2,518,440 | |||||
| Current liabilities of discontinued operations | 1,786,819 | 5,025,584 | |||||
| Total current liabilities | 5,302,066 | 7,859,024 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Non-current liabilities of discontinued operations | — | 3,902,497 | |||||
| Total non-current liabilities | — | 3,902,497 | |||||
| Total liabilities | 5,302,066 | 11,761,521 | |||||
| MEZZANINE EQUITY: | |||||||
| 121,884,850 | 119,601,410 | ||||||
| Total mezzanine equity | 121,884,850 | 119,601,410 | |||||
| SHAREHOLDERS’ EQUITY: | |||||||
| Common shares, | 19,094 | 19,022 | |||||
| Preferred shares, | 40 | 40 | |||||
| Additional paid-in capital | 57,656,763 | 57,244,290 | |||||
| Treasury shares: 0 and 43,349 shares as of September 30, 2024 and December 31, 2023, respectively. | — | (223,840 | ) | ||||
| Retained Earnings | 140,582,168 | 119,701,687 | |||||
| Total shareholders’ equity | 198,258,065 | 176,741,199 | |||||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 325,444,981 | $ | 308,104,130 | |||
TORO CORP.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
| (Expressed in U.S. Dollars) | Nine months Ended September 30, | ||||||
| 2024 | 2023 | ||||||
| Cash Flows (used in)/provided by Operating Activitiesof continuing operations: | |||||||
| Net income | $ | 24,229,477 | $ | 112,410,345 | |||
| Less: Net income from discontinued operations, net of taxes | (19,715,401 | ) | (110,526,415 | ) | |||
| Net income from continuing operations, net of taxes | 4,514,076 | 1,883,930 | |||||
| Adjustments to reconcile net income fromcontinuing operations to net cash (used in)/provided by Operating activities: | |||||||
| Depreciation and amortization | 3,591,785 | 2,195,236 | |||||
| Provision for doubtful accounts | 25,369 | — | |||||
| Stock based compensation cost | 4,364,393 | 40,190 | |||||
| Unrealized loss on equity securities | 1,440 | — | |||||
| Realized loss on sale of equity securities | 2,369 | — | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable trade, net | 841,401 | (608,478 | ) | ||||
| Inventories | (34,616 | ) | (467,033 | ) | |||
| Due from/to related parties | 137,587 | 503,729 | |||||
| Prepaid expenses and other assets | 741,674 | (446,944 | ) | ||||
| Other deferred charges | - | (4,657 | ) | ||||
| Accounts payable | (555,563 | ) | 2,259,836 | ||||
| Accrued liabilities | 306,364 | 731,554 | |||||
| Deferred revenue | 674,000 | 310,000 | |||||
| Dry-dock costs paid | (1,101,199 | ) | (1,088,387 | ) | |||
| Net Cash provided by Operating Activities from continuing operations | 13,509,080 | 5,308,976 | |||||
| Cash flow (used in)/provided by Investing Activitiesof continuing operations: | |||||||
| Vessel acquisitions and other vessel improvements | (114,607 | ) | (72,149,308 | ) | |||
| Investment in related party | — | (50,000,000 | ) | ||||
| Purchase of equity securities | (3,073,093 | ) | — | ||||
| Proceeds from sale of equity securities | 249,338 | — | |||||
| Net cash used in Investing Activitiesfrom continuing operations | (2,938,362 | ) | (122,149,308 | ) | |||
| Cash flows (used in)/provided by Financing Activities of continuing operations: | |||||||
| Net increase in Former Parent Company Investment | — | 211,982 | |||||
| Issuance of Series B preferred shares | — | 40 | |||||
| Issuance of common shares pursuant to private placement | — | 18,647,236 | |||||
| Payment of Dividend on Series A Preferred Shares | (1,050,000 | ) | (501,667 | ) | |||
| Payment for repurchase of common shares | (3,728,008 | ) | — | ||||
| Payments related to Spin-Off | — | (2,694,646 | ) | ||||
| Net cash (used in)/provided by Financing Activities from continuing operations | (4,778,008 | ) | 15,662,945 | ||||
| Cash flows of discontinued operations: | |||||||
| Net cash provided by Operating Activities from discontinued operations | 3,530,126 | 44,443,955 | |||||
| Net cash provided by Investing Activities from discontinued operations | 32,488,070 | 125,389,588 | |||||
| Net cash used in Financing Activities from discontinued operations | (5,257,200 | ) | (7,656,400 | ) | |||
| Net cash provided by discontinued operations | 30,760,996 | 162,177,143 | |||||
| Net increase in cash, cash equivalents, and restricted cash | 36,553,706 | 60,999,756 | |||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 155,585,401 | 42,479,594 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 192,139,107 | $ | 103,479,350 | |||
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 (i.e., it is a 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 (e.g., time charter, voyage charter, pools 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 Handysize tanker and LPG carrier segments (continuing operations) to Total vessel revenues from continuing operations, the most directly comparable U.S. GAAP financial measure, for the periods presented (amounts in U.S. dollars, except for Available Days):
| Three Months Ended September 30, | Nine months Ended September 30, | ||||||||||||||
| (In U.S. dollars, except for Available Days) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total vessel revenues | $ | 5,318,237 | $ | 6,502,491 | $ | 17,165,481 | $ | 15,007,524 | |||||||
| Voyage expenses including commissions to related party | (222,346 | ) | (1,462,097 | ) | (1,299,007 | ) | (1,869,622 | ) | |||||||
| TCE revenues | $ | 5,095,891 | $ | 5,040,394 | $ | 15,866,474 | $ | 13,137,902 | |||||||
| Available Days | 446 | 500 | 1,330 | 872 | |||||||||||
| Daily TCE Rate | $ | 11,426 | $ | 10,081 | $ | 11,930 | $ | 15,066 | |||||||
EBITDA. EBITDA is not a measure of financial performance under U.S. GAAP, does 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. EBITDA is used as a supplemental financial measure by management and external users of financial statements to assess our operating performance. We believe that 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, 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 as a measure 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 as presented below may be different from and may not be comparable to similarly titled measures of other companies. The following table reconciles EBITDA to Net Income from continuing operations, the most directly comparable U.S. GAAP financial measure, for the periods presented:
Reconciliation of EBITDA to Net Income
| Three Months Ended September 30, | Nine months Ended September 30, | ||||||||||||||
| (In U.S. dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net Income from continuing operations, net of taxes | $ | 974,043 | $ | 216,416 | $ | 4,514,076 | $ | 1,883,930 | |||||||
| Depreciation and amortization | 1,272,459 | 1,214,745 | 3,591,785 | 2,195,236 | |||||||||||
| Interest and finance costs, net(1) | (2,343,513 | ) | (903,634 | ) | (6,429,446 | ) | (1,109,074 | ) | |||||||
| US source income taxes | (22,497 | ) | 15,434 | — | 38,676 | ||||||||||
| EBITDA | $ | (119,508 | ) | $ | 542,961 | $ | 1,676,415 | $ | 3,008,768 | ||||||
(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 with respect to our share repurchase program), 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 generally: the effects of our spin-off from Castor Maritime Inc., our business strategy, expected capital spending and other plans and objectives for future operations, including our ability to expand our business as a new entrant to the tanker and liquefied petroleum gas shipping industry, market conditions and trends, including volatility and cyclicality in charter rates (particularly for vessels employed in the spot voyage market or pools), factors affecting supply and demand for vessels, such as fluctuations in demand for and the price of the products we transport, fluctuating vessel values, changes in worldwide fleet capacity, opportunities for the profitable operations of vessels in the segments of the shipping industry in which we operate and global economic and financial conditions, including interest rates, inflation and the growth rates of world economies, our ability to realize the expected benefits of vessel acquisitions or sales and the effects of any change in our fleet’s size or composition, increased transactions costs and other adverse effects (such as lost profit) due to any failure to consummate any sale of our vessels, our future financial condition, operating results, future revenues and expenses, future liquidity and the adequacy of cash flows from our operations, our relationships with our current and future service providers and customers, including the ongoing performance of their obligations, dependence on their expertise, compliance with applicable laws, and any impacts on our reputation due to our association with them, the availability of debt or equity financing on acceptable terms and our ability to comply with the covenants contained in agreements relating thereto, in particular due to economic, financial or operational reasons, our continued ability to enter into time charters, voyage charters or pool arrangements with existing and new customers and pool operators and to re-charter our vessels upon the expiry of the existing charters or pool agreements, any failure by our contractual counterparties to meet their obligations, changes in our operating and capitalized expenses, including bunker prices, dry-docking, insurance costs, costs associated with regulatory compliance and costs associated with climate change, our ability to fund future capital expenditures and investments in the acquisition and refurbishment of our vessels (including the amount and nature thereof and the timing of completion thereof, the delivery and commencement of operations dates, expected downtime and lost revenue), instances of off-hire, fluctuations in interest rates and currencies, including the value of the U.S. dollar relative to other currencies, any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach, existing or future disputes, proceedings or litigation, future sales of our securities in the public market, our ability to maintain compliance with applicable listing standards or the delisting of our common shares, 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, such as political instability, events or conflicts (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, sanctions “trade wars” and potential governmental requisitioning of our vessels during a period of war or emergency, global public health threats and major outbreaks of disease, any material cybersecurity incident, changes in seaborne and other transportation, including due to the maritime incidents in and around the Red Sea, fluctuating demand for tanker and LPG carriers and/or disruption of shipping routes due to accidents, political events, international sanctions, international hostilities and instability, piracy, smuggling or acts of terrorism, changes in governmental rules and regulations or actions taken by regulatory authorities, including changes to environmental regulations applicable to the shipping industry and to vessel rules and regulations, as well as changes in inspection procedures and import and export controls, inadequacies in our insurance coverage, developments in tax laws, treaties or regulations or their interpretation in any country in which we operate and changes in our tax treatment or classification, the impact of climate change, adverse weather and natural disasters, accidents or the occurrence of other unexpected events, including in relation to the operational risks associated with transporting crude oil and/or refined petroleum products and any other factors described in our filings with the SEC.
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 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
Toro Corp.
Email: ir@torocorp.com
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