Toro Corp. Reports Net Income of $1.1 Million for the Three Months Ended June 30, 2024 and $23.3 Million for the Six Months Ended June 30, 2024
Toro Corp. (NASDAQ: TORO) reported a net income of $1.1 million for Q2 2024, a sharp decrease from $55.4 million in Q2 2023. For the first half of 2024, net income was $23.3 million, down from $77.3 million in the same period last year. Total vessel revenues also saw a significant drop, falling 77.9% YoY to $5.5 million in Q2 2024, and 77.7% YoY to $12.5 million for the six months ended June 30, 2024. The company attributed these declines to exiting the Aframax/LR2 segment and lower Daily TCE Rates for LPG vessels. Despite lower revenues, cash and restricted cash increased to $189.2 million from $155.6 million as of December 31, 2023. The company also repurchased 644,556 common shares for $3.7 million. Toro's fleet currently consists of 5.1 vessels operating at a Daily TCE Rate of $11,345. Management emphasized strong operating cash flows and a robust market for LPG carriers.
Toro Corp. (NASDAQ: TORO) ha riportato un reddito netto di 1.1 milioni di dollari per il secondo trimestre del 2024, segnando un netto calo rispetto ai 55.4 milioni di dollari nel secondo trimestre del 2023. Per il primo semestre del 2024, il reddito netto è stato di 23.3 milioni di dollari, in diminuzione dai 77.3 milioni della stessa periodo dell'anno scorso. Anche i ricavi totali delle navi hanno subito un significativo declino, scendendo del 77.9% su base annua a 5.5 milioni di dollari nel secondo trimestre del 2024, e del 77.7% su base annua a 12.5 milioni di dollari per i sei mesi terminati il 30 giugno 2024. L'azienda ha attribuito questi cali all'uscita dal segmento Aframax/LR2 e ai tassi giornalieri TCE più bassi per le navi LPG. Nonostante la diminuzione dei ricavi, la cassa e la cassa vincolata sono aumentate a 189.2 milioni di dollari rispetto ai 155.6 milioni di dollari al 31 dicembre 2023. L'azienda ha anche riacquistato 644.556 azioni ordinarie per 3.7 milioni di dollari. La flotta di Toro attualmente consiste di 5.1 navi operative a un tasso giornaliero TCE di 11.345 dollari. La direzione ha sottolineato forti flussi di cassa operativi e un robusto mercato per i traghetti LPG.
Toro Corp. (NASDAQ: TORO) reportó un ingreso neto de $1.1 millones para el segundo trimestre de 2024, una fuerte disminución respecto a $55.4 millones en el segundo trimestre de 2023. Para la primera mitad de 2024, el ingreso neto fue de $23.3 millones, en comparación con $77.3 millones en el mismo período del año pasado. Los ingresos totales de los buques también experimentaron una caída significativa, bajando un 77.9% interanual a $5.5 millones en el segundo trimestre de 2024, y un 77.7% interanual a $12.5 millones para los seis meses que terminaron el 30 de junio de 2024. La empresa atribuyó estas caídas a la salida del segmento Aframax/LR2 y a las tarifas diarias TCE más bajas para los buques de LPG. A pesar de la disminución en los ingresos, la caja y la caja restringida aumentaron a $189.2 millones desde $155.6 millones al 31 de diciembre de 2023. La empresa también recompró 644,556 acciones comunes por $3.7 millones. La flota de Toro actualmente consiste en 5.1 buques operando a una tarifa diaria TCE de $11,345. La dirección enfatizó fuertes flujos de efectivo operativos y un mercado robusto para transportistas de LPG.
토로코퍼레이션 (NASDAQ: TORO)는 2024년 2분기 순이익이 110만 달러로, 2023년 2분기의 5,540만 달러에서 심각하게 감소했다고 보고했습니다. 2024년 상반기 동안 순이익은 2330만 달러로, 지난해 같은 기간의 7730만 달러에서 감소했습니다. 총 선박 수익도 큰 폭으로 감소하여 2024년 2분기에는 550만 달러로 전년 대비 77.9% 감소했으며, 2024년 6월 30일 마감된 6개월 동안에는 1250만 달러로 전년 대비 77.7% 감소했습니다. 회사는 이러한 감소를 아프라막/LR2 부문에서의 탈퇴와 LPG 선박에 대한 일일 TCE 요금 하락으로 설명했습니다. 수익 감소에도 불구하고 현금 및 제한된 현금은 2023년 12월 31일 기준 1억 8920만 달러로 증가했으며, 1억 5560만 달러에서 증가했습니다. 또한 회사는 37만 달러에 644,556주의 보통주를 재매입했습니다. 토로의 함선은 현재 5.1척으로, 일일 TCE 요금은 11,345달러입니다. 경영진은 강력한 운영 현금 흐름과 LPG 운반선에 대한 튼튼한 시장을 강조했습니다.
Toro Corp. (NASDAQ: TORO) a annoncé un revenu net de 1,1 million de dollars pour le deuxième trimestre 2024, soit une forte baisse par rapport à 55,4 millions de dollars pour le deuxième trimestre 2023. Pour le premier semestre 2024, le revenu net était de 23,3 millions de dollars, en baisse par rapport à 77,3 millions de dollars au cours de la même période l'année précédente. Les revenus totaux des navires ont également connu une diminution significative, chutant de 77,9 % en glissement annuel à 5,5 millions de dollars au deuxième trimestre 2024, et de 77,7 % en glissement annuel à 12,5 millions de dollars pour les six mois se terminant le 30 juin 2024. La société a attribué ces baisses à son retrait du segment Aframax/LR2 et à des tarifs TCE quotidiens plus bas pour les navires LPG. Malgré la baisse des revenus, la trésorerie et la trésorerie restreinte ont augmenté à 189,2 millions de dollars par rapport à 155,6 millions de dollars au 31 décembre 2023. La société a également racheté 644 556 actions ordinaires pour 3,7 millions de dollars. La flotte de Toro se compose actuellement de 5,1 navires opérant à un tarif TCE quotidien de 11 345 dollars. La direction a souligné de forts flux de trésorerie d'exploitation et un marché solide pour les transporteurs LPG.
Toro Corp. (NASDAQ: TORO) berichtete für das zweite Quartal 2024 einen netto Gewinn von 1,1 Millionen Dollar, was einen drastischen Rückgang von 55,4 Millionen Dollar im zweiten Quartal 2023 darstellt. Für das erste Halbjahr 2024 betrug der netto Gewinn 23,3 Millionen Dollar, gegenüber 77,3 Millionen Dollar im gleichen Zeitraum des Vorjahres. Auch die Gesamteinnahmen der Schiffe verzeichneten einen erheblichen Rückgang und fielen im zweiten Quartal 2024 um 77,9 % im Jahresvergleich auf 5,5 Millionen Dollar und um 77,7 % im Jahresvergleich auf 12,5 Millionen Dollar für die sechs Monate bis zum 30. Juni 2024. Das Unternehmen führte diese Rückgänge auf den Ausstieg aus dem Aframax/LR2-Segment und niedrigere tägliche TCE-Sätze für LPG-Schiffe zurück. Trotz der niedrigeren Einnahmen stiegen Bargeld und eingeschränktes Bargeld auf 189,2 Millionen Dollar von 155,6 Millionen Dollar zum 31. Dezember 2023. Das Unternehmen erwarb auch 644.556 Stammaktien für 3,7 Millionen Dollar zurück. Die Flotte von Toro besteht derzeit aus 5,1 Schiffen, die zu einem täglichen TCE-Satz von 11.345 Dollar betrieben werden. Das Management hob die starken operativen Cashflows und einen robusten Markt für LPG-Transporteure hervor.
- Cash and restricted cash increased to $189.2 million from $155.6 million as of December 31, 2023.
- Net income decreased by 98% YoY to $1.1 million in Q2 2024.
- Total vessel revenues decreased by 77.9% YoY to $5.5 million in Q2 2024.
- EBITDA fell to $0.2 million from $56.8 million in Q2 2023.
- Earnings per common share dropped to $0.001 from $3.34 in Q2 2023.
- Daily TCE Rate decreased to $11,345 from $31,841 in Q2 2023.
- General and administrative expenses increased to $2.4 million from $0.9 million in Q2 2023.
- Interest and finance costs rose to $(2.1) million from $(0.4) million in Q2 2023.
LIMASSOL, Cyprus, Aug. 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 six months ended June 30, 2024.
Highlights of the Second Quarter Ended June 30, 2024:
- Total vessel revenues:
$5.5 million , as compared to$24.9 million for the three months ended June 30, 2023, or a77.9% decrease; - Net income:
$1.1 million , as compared to$55.4 million for the three months ended June 30, 2023, or a98.0% decrease; - Earnings per common share, basic:
$0.00 1 per share, as compared to$3.34 per share for the three months ended June 30, 2023; - EBITDA(1):
$0.2 million , as compared to$56.8 million for the three months ended June 30, 2023; and - Cash and restricted cash of
$189.2 million as of June 30, 2024, as compared to$155.6 million as of December 31, 2023.
Highlights of the Six Months Ended June 30, 2024:
- Total vessel revenues:
$12.5 million , as compared to$56.0 million for the six months ended June 30, 2023, or a77.7% decrease; - Net income:
$23.3 million , as compared to$77.3 million for the six months ended June 30, 2023, or a69.9% decrease; - Earnings per common share, basic:
$1.12 per share, as compared to$5.13 per share for the six months ended June 30, 2023; - EBITDA(1):
$21.6 million , as compared to$80.9 million for the six months ended June 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 second quarter of 2024 we continued to enjoy substantial operating cash flows from our fleet which consists mostly of LPG carrier vessels.
“The markets for both product tankers and LPG carriers remain robust, while we maintain a strong balance sheet with significant cash reserves and no outstanding debt. As we move forward, we continue to seek opportunities that will further drive our growth and strengthen our position in the market.”
Earnings Commentary:
Second quarter ended June 30, 2024, and 2023 Results
Total vessel revenues, net of charterers’ commissions, decreased to
Voyage expenses for our fleet decreased to
The decrease in Vessel operating expenses by
Depreciation expenses for our fleet decreased to
General and administrative expenses in the three months ended June 30, 2024, amounted to
Management fees decreased to
Interest and finance costs, net, amounted to
Recent Financial Developments Commentary:
Equity update
On July 15, 2024, the Company paid to Castor Maritime Inc. (“Castor”) a dividend amounting to
As of August 9, 2024, we had 19,093,853 common shares issued and outstanding.
Liquidity/Financing/Cash flow update
Our consolidated cash position (including our restricted cash) increased by
Fleet Employment Status (as of August 9, 2024): During the three months ended June 30, 2024, we operated on average 5.1 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) | May-25 | May-26 | |
| 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 Overview:
Set forth below are selected financial and operational data of our fleet for each of the three and six months ended June 30, 2024 and 2023, respectively:
| Three Months Ended | Six Months Ended | |||||||||||
| (Expressed in U.S. dollars) | June 30, 2024 (unaudited) | June 30, 2023 (unaudited) | June 30, 2024 (unaudited) | June 30, 2023 (unaudited) | ||||||||
| Total vessel revenues | $ | 5,472,595 | $ | 24,858,529 | $ | 12,478,424 | $ | 56,012,683 | ||||
| Operating (loss)/ income | $ | (1,560,681 | ) | $ | 55,066,352 | $ | 17,979,504 | $ | 77,111,010 | |||
| Net income and comprehensive income | $ | 1,126,769 | $ | 55,381,774 | $ | 23,254,128 | $ | 77,340,987 | ||||
| EBITDA(1) | $ | 221,213 | $ | 56,785,038 | $ | 21,586,042 | $ | 80,875,342 | ||||
| Earnings per common share, basic | $ | 0.001 | $ | 3.34 | $ | 1.12 | $ | 5.13 | ||||
| Earnings per common share, diluted | $ | 0.001 | $ | 0.94 | $ | 0.50 | $ | 1.30 | ||||
(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:
Set forth below are selected financial and operational data of our fleet for each of the three and six months ended June 30, 2024 and 2023, 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) | 2024 | 2023 | 2024 | 2023 | |||||||
| Ownership Days(1)(7) | 455 | 769 | 934 | 1,489 | |||||||
| Available Days(2)(7) | 429 | 758 | 908 | 1,435 | |||||||
| Operating Days(3)(7) | 429 | 746 | 896 | 1,419 | |||||||
| Daily TCE Rate(4) | $ | 11,345 | $ | 31,841 | $ | 12,531 | $ | 38,168 | |||
| Fleet Utilization(5) | |||||||||||
| Daily vessel operating expenses(6) | $ | 5,168 | $ | 7,898 | $ | 5,256 | $ | 7,515 | |||
(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 June 30, | Six Months Ended June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUES | |||||||||||||||
| Time charter revenues | 3,338,750 | 3,613,038 | 6,518,240 | 5,519,288 | |||||||||||
| Voyage charter revenues | 548,514 | 381,189 | 1,310,662 | 389,119 | |||||||||||
| Pool revenues | 1,585,331 | 20,864,302 | 4,649,522 | 50,104,276 | |||||||||||
| Total vessel revenues | $ | 5,472,595 | $ | 24,858,529 | $ | 12,478,424 | $ | 56,012,683 | |||||||
| EXPENSES | |||||||||||||||
| Voyage expenses (including commissions to related party) | (605,412 | ) | (723,319 | ) | (1,100,402 | ) | (1,242,116 | ) | |||||||
| Vessel operating expenses | (2,351,501 | ) | (6,073,774 | ) | (4,909,348 | ) | (11,190,295 | ) | |||||||
| General and administrative expenses (including related party fees) | (2,440,602 | ) | (858,322 | ) | (4,698,176 | ) | (1,841,586 | ) | |||||||
| Management fees - related parties | (472,745 | ) | (955,500 | ) | (970,426 | ) | (1,657,500 | ) | |||||||
| Depreciation and amortization | (1,163,016 | ) | (1,730,038 | ) | (2,354,631 | ) | (3,785,684 | ) | |||||||
| (Provision)/recovery of provision for doubtful accounts | — | — | (25,369 | ) | 266,732 | ||||||||||
| Gain on sale of vessels | — | 40,548,776 | 19,559,432 | 40,548,776 | |||||||||||
| Operating (loss)/income | $ | (1,560,681 | ) | $ | 55,066,352 | $ | 17,979,504 | $ | 77,111,010 | ||||||
| Interest and finance costs, net(1) | 2,068,572 | 424,198 | 4,045,214 | 541,954 | |||||||||||
| Other expenses, net(2) | (13,067 | ) | (11,352 | ) | (11,982 | ) | (21,352 | ) | |||||||
| Dividend income from related party | 631,945 | — | 1,263,889 | — | |||||||||||
| Income taxes | — | (97,424 | ) | (22,497 | ) | (290,625 | ) | ||||||||
| Net income and comprehensive income, net of taxes | $ | 1,126,769 | $ | 55,381,774 | $ | 23,254,128 | $ | 77,340,987 | |||||||
| Dividend on Series A Preferred Shares | (353,889 | ) | (353,889 | ) | (707,778 | ) | (451,111 | ) | |||||||
| Deemed dividend on Series A Preferred Shares | (758,322 | ) | (730,779 | ) | (1,509,700 | ) | (931,034 | ) | |||||||
| Net income attributable to common shareholders | $ | 14,558 | $ | 54,297,106 | $ | 21,036,650 | $ | 75,958,842 | |||||||
| Earnings per common share, basic | $ | 0.001 | $ | 3.34 | $ | 1.12 | $ | 5.13 | |||||||
| Earnings per common share, diluted | $ | 0.001 | $ | 0.94 | $ | 0.50 | $ | 1.30 | |||||||
| Weighted average number of common shares outstanding, basic: | 17,094,130 | 16,279,690 | 17,416,746 | 14,810,147 | |||||||||||
| Weighted average number of common shares outstanding, diluted: | 17,094,130 | 59,025,087 | 45,141,763 | 59,492,793 | |||||||||||
(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)
| June 30, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 189,190,680 | $ | 155,235,401 | ||
| Due from related parties | 1,651,486 | 3,923,315 | ||||
| Other current assets | 1,940,516 | 5,976,852 | ||||
| Total current assets | 192,782,682 | 165,135,568 | ||||
| NON-CURRENT ASSETS: | ||||||
| Vessels, net | 74,885,936 | 88,708,051 | ||||
| Restricted cash | — | 350,000 | ||||
| Due from related parties | 1,590,501 | 1,590,501 | ||||
| Investment in related party | 50,555,556 | 50,541,667 | ||||
| Other non-currents assets | 3,593,510 | 1,778,343 | ||||
| Total non-current assets | 130,625,503 | 142,968,562 | ||||
| Total assets | 323,408,185 | 308,104,130 | ||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Current portion of long-term debt, net | — | 1,311,289 | ||||
| Due to related parties | 322,778 | 315,000 | ||||
| Other current liabilities | 5,306,937 | 6,232,735 | ||||
| Total current liabilities | 5,629,715 | 7,859,024 | ||||
| NON-CURRENT LIABILITIES: | ||||||
| Long-term debt, net | — | 3,902,497 | ||||
| Total non-current liabilities | — | 3,902,497 | ||||
| Total liabilities | 5,629,715 | 11,761,521 | ||||
| MEZZANINE EQUITY: | ||||||
| 121,111,110 | 119,601,410 | |||||
| Total mezzanine equity | 121,111,110 | 119,601,410 | ||||
| SHAREHOLDERS’ EQUITY: | ||||||
| Common shares, | 19,094 | 19,022 | ||||
| Preferred shares, | 40 | 40 | ||||
| Additional paid-in capital | 55,909,889 | 57,244,290 | ||||
| Treasury shares: 0 and 43,349 shares as of June 30, 2024 and December 31, 2023, respectively. | — | (223,840 | ) | |||
| Retained Earnings | 140,738,337 | 119,701,687 | ||||
| Total shareholders’ equity | 196,667,360 | 176,741,199 | ||||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 323,408,185 | $ | 308,104,130 | ||
TORO CORP.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
| (Expressed in U.S. Dollars) | Six Months Ended June 30, | ||||||
| 2024 | 2023 | ||||||
| Cash Flows (used in)/provided by Operating Activities: | |||||||
| Net income | $ | 23,254,128 | $ | 77,340,987 | |||
| Adjustments to reconcile net income to net cash (used in)/provided by Operating activities: | |||||||
| Depreciation and amortization | 2,354,631 | 3,785,684 | |||||
| Amortization of deferred finance charges | 43,414 | 115,074 | |||||
| Gain on sale of vessels | (19,559,432 | ) | (40,548,776 | ) | |||
| Provision for doubtful accounts | 25,369 | — | |||||
| Stock based compensation cost | 2,617,519 | — | |||||
| Unrealized loss on equity securities | 20,144 | — | |||||
| Realized loss on sale of equity securities | 770 | — | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable trade, net | 3,445,393 | 5,817,705 | |||||
| Inventories | 46,731 | (66,884 | ) | ||||
| Due from/to related parties | 2,258,262 | (4,035,130 | ) | ||||
| Prepaid expenses and other assets | 965,288 | 3,144,511 | |||||
| Accounts payable | (946,287 | ) | 3,039,191 | ||||
| Accrued liabilities | (466,174 | ) | 751,189 | ||||
| Deferred revenue | 549,643 | 440,425 | |||||
| Dry-dock costs paid | (769,513 | ) | (1,447,121 | ) | |||
| Net Cash provided by Operating Activities | 13,839,886 | 48,336,855 | |||||
| Cash flow (used in)/provided by Investing Activities: | |||||||
| Vessel acquisitions and other vessel improvements | (34,660 | ) | (37,778,507 | ) | |||
| Advances for vessel acquisition | — | (3,390,000 | ) | ||||
| Net proceeds from sale of vessel | 32,490,120 | 69,102,804 | |||||
| Purchase of equity securities | (3,073,093 | ) | — | ||||
| Proceeds from sale of equity securities | 68,234 | — | |||||
| Net cash provided by Investing Activities | 29,450,601 | 27,934,297 | |||||
| Cash flows (used in)/provided by Financing Activities: | |||||||
| Net increase in Former Parent Company Investment | — | 211,982 | |||||
| Issuance of Series B preferred shares | — | 40 | |||||
| Issuance of common shares pursuant to private placement | — | 19,415,001 | |||||
| Payment of Dividend on Series A Preferred Shares | (700,000 | ) | (151,667 | ) | |||
| Repayment of long-term debt | (5,257,200 | ) | (7,320,000 | ) | |||
| Payment for repurchase of common shares | (3,728,008 | ) | — | ||||
| Payments related to Spin-Off | — | (2,667,044 | ) | ||||
| Net cash (used in)/provided by Financing Activities | (9,685,208 | ) | 9,488,312 | ||||
| Net increase in cash, cash equivalents, and restricted cash | 33,605,279 | 85,759,464 | |||||
| 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 | $ | 189,190,680 | $ | 128,239,058 | |||
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 fleet to Total vessel revenues, 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| (In U.S. dollars, except for Available Days) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total vessel revenues | $ | 5,472,595 | $ | 24,858,529 | $ | 12,478,424 | $ | 56,012,683 | |||||||
| Voyage expenses - including commissions to related party | (605,412 | ) | (723,319 | ) | (1,100,402 | ) | (1,242,116 | ) | |||||||
| TCE revenues | $ | 4,867,183 | $ | 24,135,210 | $ | 11,378,022 | $ | 54,770,567 | |||||||
| Available Days | 429 | 758 | 908 | 1,435 | |||||||||||
| Daily TCE Rate | $ | 11,345 | $ | 31,841 | $ | 12,531 | $ | 38,168 | |||||||
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, the most directly comparable U.S. GAAP financial measure, for the periods presented:
Reconciliation of EBITDA to Net Income
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In U.S. dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net Income | $ | 1,126,769 | $ | 55,381,774 | $ | 23,254,128 | $ | 77,340,987 | |||||||
| Depreciation and amortization | 1,163,016 | 1,730,038 | 2,354,631 | 3,785,684 | |||||||||||
| Interest and finance costs, net(1) | (2,068,572 | ) | (424,198 | ) | (4,045,214 | ) | (541,954 | ) | |||||||
| US source income taxes | — | 97,424 | 22,497 | 290,625 | |||||||||||
| EBITDA | $ | 221,213 | $ | 56,785,038 | $ | 21,586,042 | $ | 80,875,342 | |||||||
(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 the Spin-Off, 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
FAQ
What was Toro Corp.'s net income for Q2 2024?
How much did Toro Corp.'s total vessel revenues decrease in Q2 2024?
What was the Daily TCE Rate for Toro Corp.'s fleet in Q2 2024?
How much has Toro Corp.'s cash and restricted cash increased as of June 30, 2024?
What actions did Toro Corp. take under its share repurchase program?
