Highlights | ||||
(in million USD, except EPS) | Q1 2023 | Q1 2022 | ||
Net Revenues | ||||
Net (loss) / income | ( | |||
Adjusted net (loss) / income1 | ( | |||
EBITDA1 | ||||
Adjusted EBITDA1 | ||||
(Loss) / earnings per Share Basic1,2 | ( | |||
(Loss) / earnings per Share Diluted1,2 | ( | |||
Adjusted (loss) / earnings per share Basic1,2 | ( | |||
Adjusted (loss) / earnings per share Diluted1,2 | ( |
Other Highlights and Developments:
- Quarterly cash dividend of
$0.025 per share for Q1 2023 - resulting in total cash dividends of$1.30 per share or$23.4 million declared sinceMarch 2022 , in addition to the spin-off and distribution of shares of United Maritime Corporation inJuly 2022 - New financing and refinancing transactions of
$53.8 million on improved terms adding approx.$15.0 million of extra liquidity - Elimination of 92% of the original
$38.7 million convertible note, following the$8.0 million repayment in Q1 2023 $0.85 million open market common shares purchases by Seanergy’s management- Repurchased 47% of the outstanding Class
E Warrants through a tender offer
For the quarter ended
Cash and cash-equivalents and restricted cash, as of
________________
1 Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA to net income, the most directly comparable
2 All references to number of shares, share prices, warrant prices and “per share” figures in this document are adjusted to reflect the one-for-ten reverse stock split effected on
3 TCE rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable
“In the first quarter of 2023, the Capesize market went through a period of seasonal weakness, with rates averaging a mere
“With regards to our commercial performance for the first quarter, our daily TCE of approximately
“Furthermore, our balance sheet position remains strong, with a loan to value ratio below 50% as of the end of the quarter, which allows us to remain consistent with our strategy regardless of short-term market volatility. To this end, in the first quarter we have delivered the two older ships of our fleet to United Maritime Corporation (“United”) for a sizeable gain, while in April we completed three refinancings which led to the release of approximately
“Looking towards the rest of the year, the increased seaborne iron ore supply from major miners along with the reduction of iron ore inventories in
“Seanergy is well positioned to benefit from the positive trend in the Capesize market. We are focused on seeking opportunities to modernize our fleet and improve our carbon footprint, while maintaining our focus on shareholder returns, as evidenced by the high levels of shareholder rewards, through securities buybacks the United spin-off and shares distribution and cash dividends, attained over the past two years.”
________________
4 Please refer to our detailed Second Quarter 2023 TCE Guidance and footnote 5 below.
Company Fleet:
Capacity (DWT) | Year Built | Yard | Scrubber Fitted | Employment Type | FFA conversion option(1) | Minimum expiration | Maximum expiration(2) | Charterer | |
Fellowship | 179,701 | 2010 | Daewoo | - | T/C Index Linked | Yes | 06/2024 | 11/2024 | Anglo American |
Worldship | 181,415 | 2012 | Koyo – Imabari | Yes | T/C Index Linked | Yes | 09/2023 | 01/2024 | |
Championship | 179,238 | 2011 | Sungdong SB | Yes | T/C Index Linked | Yes | 04/2025 | 10/2025 | |
Flagship | 176,387 | 2013 | Mitsui | - | T/C Index Linked | Yes | 05/2026 | 07/2026 | |
Patriotship | 181,709 | 2010 | Imabari | Yes | T/C Index Linked | Yes | 11/2023 | 06/2024 | Glencore |
Knightship | 178,978 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 10/2024 | 12/2024 | Glencore |
Premiership | 170,024 | 2010 | Sungdong SB | Yes | T/C Index Linked | Yes | 04/2024 | 06/2024 | Glencore |
Squireship | 170,018 | 2010 | Sungdong SB | Yes | T/C Index Linked | Yes | 05/2024 | 07/2024 | Glencore |
Dukeship | 181,453 | 2010 | Sasebo | - | T/C Index Linked | Yes | 04/2024 | 09/2024 | NYK |
Hellasship | 181,325 | 2012 | Imabari | - | T/C Index Linked | Yes | 12/2023 | 03/2024 | NYK |
Honorship | 180,242 | 2010 | Imabari | - | T/C Index Linked | Yes | 02/2024 | 07/2024 | NYK |
Geniuship | 170,057 | 2010 | Sungdong SB | - | T/C Index Linked | Yes | 04/2024 | 08/2024 | NYK |
Friendship | 176,952 | 2009 | Namura | - | T/C Index Linked | Yes | 12/2023 | 03/2024 | NYK |
Paroship | 181,415 | 2012 | Koyo -Imabari | Yes | T/C Index Linked | Yes | 10/2023 | 12/2023 | Oldendorff |
Partnership | 179,213 | 2012 | Hyundai | Yes | T/C Index Linked | Yes | 08/2023 | 11/2023 | Uniper |
Lordship | 178,838 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 07/2023 | 10/2023 | Uniper |
Total / Average age | 2,846,965 | 12.3 | - | - | - | - | - | - | - |
(1) The Company has the option to convert the index-linked rate to fixed for periods ranging between 1 and 12 months, based on the prevailing Capesize FFA Rate for the selected period.
(2) The latest redelivery date does not include any additional optional period.
Fleet Data:
(
Q1 2023 | Q1 2022 | |||||
Ownership days (1) | 1,539 | 1,530 | ||||
Operating days (2) | 1,520 | 1,482 | ||||
Fleet utilization (3) | 98.8% | 96.9% | ||||
TCE rate (4) | ||||||
Daily Vessel Operating Expenses (5) |
(1) Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.
(2) Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Available days are the number of ownership days less the aggregate number of days that our vessels are off-hire due to major repairs, dry-dockings, lay-up or special or intermediate surveys. Operating days include the days that our vessels are in ballast voyages without having finalized agreements for their next employment.
(3) Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.
(4) TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable
(In thousands of
Q1 2023 | Q1 2022 | |||
Vessel revenue, net | 17,384 | 29,666 | ||
Less: Voyage expenses | 657 | 979 | ||
Time charter equivalent revenues | 16,727 | 28,687 | ||
Operating days | 1,520 | 1,482 | ||
TCE rate | $ | 11,005 | $ | 19,357 |
(5) Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses, excluding pre delivery costs, by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.
(In thousands of
Q1 2023 | Q1 2022 | |||
Vessel operating expenses | 10,913 | 9,912 | ||
Less: Pre-delivery expenses | 260 | 53 | ||
Vessel operating expenses before pre-delivery expenses | 10,653 | 9,859 | ||
Ownership days | 1,539 | 1,530 | ||
Daily Vessel Operating Expenses | $ | 6,922 | $ | 6,444 |
Net income / (loss) to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of
Q1 2023 | Q1 2022 | ||
Net (loss) / income | (4,185 | ) | 3,671 |
Net interest and finance cost | 5,261 | 2,850 | |
Depreciation and amortization | 7,077 | 6,265 | |
EBITDA | 8,153 | 12,786 | |
Stock based compensation | 3,680 | 2,679 | |
Loss on extinguishment of debt | 110 | 1,279 | |
Loss on forward freight agreements, net | 50 | 36 | |
Gain on sale of vessel | (8,094 | ) | - |
Adjusted EBITDA | 3,899 | 16,780 |
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under
EBITDA and adjusted EBITDA are presented as we believe that these measures are useful to investors as a widely used means of evaluating operating profitability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. EBITDA and adjusted EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with
Adjusted Net income / (loss) Reconciliation and calculation of Adjusted Earnings / (loss) Per Share
(In thousands of
Q1 2023 | Q1 2022 | ||
Net (loss) / income | (4,185 | ) | 3,671 |
Stock based compensation | 3,680 | 2,679 | |
Loss on extinguishment of debt | 110 | 1,279 | |
Loss on forward freight agreements, net | 50 | 36 | |
Adjusted net (loss) / income | (345 | ) | 7,665 |
Adjusted (loss) / earnings per common share, basic | (0.02 | ) | 0.44 |
Adjusted (loss) / earnings per common share, diluted | (0.02 | ) | 0.43 |
Weighted average number of common shares outstanding, basic | 17,929,142 | 17,231,175 | |
Weighted average number of common shares outstanding, diluted | 17,929,142 | 17,721,863 |
To derive Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we exclude non-cash items, as provided in the table above. We believe that Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as gain/(loss) on extinguishment of debt and other items which may vary from year to year, for reasons unrelated to overall operating performance. In addition, we believe that the presentation of the respective measure provides investors with supplemental data relating to our results of operations, and therefore, with a more complete understanding of factors affecting our business than with GAAP measures alone. Our method of computing Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:
(In thousands of
Q1 2023 | Q1 2022 | |||
Interest and finance costs, net | (5,261 | ) | (2,850 | ) |
Add: Amortization of deferred finance charges and other discounts | 959 | 576 | ||
Add: Amortization of other deferred charges (shares issued to third party) | 64 | 82 | ||
Cash interest and finance costs | (4,238 | ) | (2,192 | ) |
Second Quarter 2023 TCE Guidance:
As of the date hereof, approximately 75% of the Company fleet’s expected operating days in the second quarter of 2023 have been fixed at an estimated TCE of approximately
Operating Days | TCE | |
TCE - fixed rate (index-linked conversion) | 455 | 21,079 |
TCE - fixed rate | 0 | N/A |
TCE – index-linked | 1,001 | 17,866 |
Total / Average | 1,456 | 18,870 |
________________
5 This guidance is based on certain assumptions and there can be no assurance that these TCE estimates, or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of the quarter for an index-linked
First Quarter and Recent Developments:
Dividend Distribution for Q4 2022 and Declaration of Q1 2023 Dividend
On
The Company also declared a cash dividend of
Buyback of Convertible Note
On
Stock Purchases by the CEO & CFO
Seanergy’s Chairman and Chief Executive Officer,
Completion of the tender offer for the purchase of the Class E Common Share Purchase Warrants
On
Vessel Transactions and Commercial Updates
M/V Championship new time-charter agreement
On
M/V Knightship time-charter extension
On
M/V Geniuship time-charter extension
On
Profitable sale of M/V Goodship and M/V Tradership and delivery to their new owners
On
Financing Updates
M/V Lordship sale & leaseback agreement
On
M/V Championship sustainability linked loan facility
On
M/V Knightship sale & leaseback agreement
On
Prepayment of Aegean Baltic Bank Loan Facility
In connection with the sales of the M/V Goodship and M/V Tradership, the Company prepaid on
Conference Call:
The Company’s management will host a conference call to discuss financial results on
Audio Webcast:
There will be a live, and then archived, webcast of the conference call available through the Company’s website. To listen to the archived audio file, visit our website, following the Webcast & Presentations section under our Investor Relations page. Participants to the live webcast should register on the Seanergy website approximately 10 minutes prior to the start of the webcast, following this link.
Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.
Unaudited Condensed Consolidated Balance Sheets (In thousands of | ||||||
2023 | 2022* | |||||
ASSETS | ||||||
Cash and cash equivalents, restricted cash and term deposits | 20,511 | 32,477 | ||||
Vessels, net and Vessels held for sale | 428,205 | 462,385 | ||||
Other assets | 17,697 | 18,738 | ||||
TOTAL ASSETS | 466,413 | 513,600 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt and other financial liabilities | 222,922 | 244,866 | ||||
Convertible notes | 2,910 | 10,833 | ||||
Other liabilities | 20,726 | 36,202 | ||||
Stockholders’ equity | 219,855 | 221,699 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 466,413 | 513,600 |
* Derived from the audited consolidated financial statements as of that date
Unaudited Condensed Consolidated Statements of Operations (In thousands of | |||||
Three months ended | |||||
2023 | 2022 | ||||
Vessel revenue, net | 17,384 | 29,666 | |||
Fees from related parties | 642 | - | |||
Revenue, net | 18,026 | 29,666 | |||
Expenses: | |||||
Voyage expenses | (657 | ) | (979 | ) | |
Vessel operating expenses | (10,913 | ) | (9,912 | ) | |
Management fees | (229 | ) | (376 | ) | |
General and administrative expenses | (5,905 | ) | (4,315 | ) | |
Depreciation and amortization | (7,077 | ) | (6,265 | ) | |
Loss on forward freight agreements, net | (50 | ) | (36 | ) | |
Gain on sale of vessel | 8,094 | - | |||
Operating income | 1,289 | 7,783 | |||
Other income / (expenses): | |||||
Interest and finance costs, net | (5,261 | ) | (2,850 | ) | |
Loss on extinguishment of debt | (110 | ) | (1,279 | ) | |
Other, net | (103 | ) | 17 | ||
Total other expenses, net: | (5,474 | ) | (4,112 | ) | |
Net (loss) / income | (4,185 | ) | 3,671 | ||
Net (loss) / income per common share, basic | (0.23 | ) | 0.21 | ||
Net (loss) / income per common share, diluted | (0.23 | ) | 0.21 | ||
Weighted average number of common shares outstanding, basic | 17,929,142 | 17,231,175 | |||
Weighted average number of common shares outstanding, diluted | 17,929,142 | 17,721,863 | |||
Unaudited Condensed Consolidated Cash Flow Data (In thousands of | ||||||
2023 | 2022 | |||||
Net cash (used in) / provided by operating activities | (264 | ) | 7,549 | |||
Vessels acquisitions and improvements | - | (2,042 | ) | |||
Proceeds from sale of assets | 23,910 | - | ||||
Term deposits | - | 1,500 | ||||
Other fixed assets, net | (47 | ) | (18 | ) | ||
Net cash provided by / (used in) investing activities | 23,863 | (560 | ) | |||
Proceeds from long-term debt and other financial liabilities | - | 21,300 | ||||
Repayments of long-term debt and other financial liabilities | (22,994 | ) | (24,652 | ) | ||
Repayments of convertible notes | (8,000 | ) | (10,000 | ) | ||
Payments for fractional shares of reverse stock split | (23 | ) | - | |||
Payments of financing and stock issuance costs | - | (378 | ) | |||
Dividends paid | (4,548 | ) | - | |||
Net cash used in financing activities | (35,565 | ) | (13,730 | ) | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Cash paid during the period for interest | 4,422 | 2,324 | ||||
Noncash investing activities | ||||||
Vessels acquisitions and improvements | - | 836 | ||||
Noncash financing activities | ||||||
Dividends declared but not paid | 500 | 8,916 | ||||
About
The Company is incorporated in the
Please visit our company website at: www.seanergymaritime.com.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company's operating or financial results; the Company's liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
Source:
2023 GlobeNewswire, Inc., source