TOP Ships Announces a 412% Increase in Net Income for the Six Months Ended June 30
09/28/2022 - 08:57 AM
ATHENS, Greece, Sept. 28, 2022 (GLOBE NEWSWIRE) -- TOP Ships Inc. (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today its unaudited financial results for six months ended June 30, 2022.
For the six months ended June 30, 2022, the Company reported:
Total revenues of $38.8 million (53% increase from 1st half 2021) Net Income of $8.6 million (412% increase from 1st half 2021) Adjusted EBITDA of $26.9 million * (88% increase from 1st half 2021) Total Assets of $475.4 million (44% increase from December 31, 2021) Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:
“We are very happy to report a dramatic year-on-year increase in net income for the six months ended June 30, 2022, which represents our highest reported net income for a six month period since 2005. Furthermore, as of June 30, 2022, our fixed revenue backlog is about $278.5 million and our charter coverage is as per below table:
Year Time Charter Coverage 2022 (remainder) 100% 2023 100% 2024 76% 2025 17% 2026+ 10%
”
About TOP Ships Inc.
TOP Ships Inc. is an international ship-owning company.
For more information about TOP Ships Inc., visit its website: www.topships.org.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
Contact:
Alexandros Tsirikos Chief Financial Officer TOP Ships Inc. Tel: +30 210 812 8107 Email: atsirikos@topships.org
TOP SHIPS INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2022 (Expressed in thousands of U.S. Dollars - except share and per share data) Six Months Ended June 30, June 30, 2021 2022 REVENUES: Time charter revenues $ 25,310 $ 36,060 Time charter revenues from related parties - 2,786 Total revenues 25,310 38,846 EXPENSES: Voyage expenses 608 875 Operating lease expenses 5,378 5,378 Other vessel operating expenses 7,919 9,705 Vessel depreciation 3,339 6,114 Management fees-related parties 1,661 1,030 Dry-docking costs 26 - Gain on sale of vessels - (78 ) Impairment on vessels 1,160 - General and administrative expenses 963 691 Operating income 4,256 15,131 OTHER INCOME (EXPENSES): Interest and finance costs (2,837 ) (6,927 ) Gain on derivative financial instruments 66 - Equity gains in unconsolidated joint ventures 197 401 Total other expenses, net (2,574 ) (6,526 ) Net income and comprehensive income 1,682 8,605 Less: Deemed dividend equivalents on Series F Shares related to redemption value - (14,400 ) Less: Dividends of preferred shares (915 ) (7,322 ) Net income/(loss) and comprehensive income/(loss) attributable to common shareholders 767 (13,117 )
TOP SHIPS INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND JUNE 30, 2022 (Expressed in thousands of U.S. Dollars - except share and per share data) December 31, June 30, 2021 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents 2,370 14,267 Trade accounts receivable 76 293 Prepayments and other 581 1,061 Inventories 671 936 Vessels held for sale 71,636 - Total current assets 75,334 16,557 FIXED ASSETS: Advances for vessels under construction 30,579 - Vessels, net 156,585 396,234 Right of use assets from operating leases 37,279 33,058 Other fixed assets, net 534 530 Total fixed assets 224,977 429,822 OTHER NON CURRENT ASSETS: Restricted cash 4,000 4,000 Investments in unconsolidated joint ventures 24,477 23,027 Deposit asset 2,000 2,000 Total non-current assets 30,477 29,027 Total assets 330,788 475,406 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Current portion of long-term debt 7,205 14,949 Debt related to vessels held for sale 53,202 - Due to related parties 29,755 1,787 Accounts payable 2,308 2,338 Accrued liabilities 1,145 1,736 Unearned revenue 3,658 4,923 Current portion of Operating lease liabilities 9,815 9,213 Total current liabilities 107,088 34,946 NON-CURRENT LIABILITIES: Non-current portion of long term debt 90,163 229,509 Non-current portion of Operating lease liabilities 23,948 19,642 Other non-current liabilities 225 175 Total non-current liabilities 114,336 249,326 COMMITMENTS AND CONTINGENCIES - - Total liabilities 221,424 284,272 MEZZANINE EQUITY: Preferred stock, $0.01 par value; 20,000,000 shares authorized; 13,452 Series E Shares issued and outstanding at December 31, 2021 and 13,452 Series E Shares and 7,200,000 Series F Shares issued and outstanding at June 30, 2022 - 72 Preferred stock, Paid-in capital in excess of par 16,142 102,470 Total mezzanine equity 16,142 102,542 STOCKHOLDERS’ EQUITY: Preferred stock, $0.01 par value; 20,000,000 shares authorized; of which 100,000 Series D shares were outstanding at December 31, 2021 and June 30, 2022 1 1 Common stock, $0.01 par value; 1,000,000,000 shares authorized; 1,991,598 shares issued and outstanding at December 31, 2021 and 2,356,041 shares issued and outstanding at June 30, 2022 19 23 Additional paid-in capital 429,956 416,717 Accumulated deficit (336,754 ) (328,149 ) Total stockholders’ equity 93,222 88,592 Total liabilities, mezzanine equity and stockholders’ equity 330,788 475,406
*Non-US GAAP Measures
This report describes Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a “Non-US GAAP” measure). We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, other operating loss, operating lease expenses, vessel impairments, gains on sale of vessels and gains/losses on derivative financial instruments.
Adjusted EBITDA is a non-U.S. GAAP financial measure that is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-U.S. GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. This is achieved by excluding the potentially disparate effects between periods of interest, gain/loss on financial instruments, taxes, depreciation and amortization, other operating losses, operating lease expenses, gains on sale of vessels and vessel impairments, and which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods and other items that the Company believes are not indicative of the ongoing performance of its core operations.
This Non-U.S. GAAP measure should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our definition of Adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries. Adjusted EBITDA does not represent and should not be considered as an alternative to operating income or cash flow from operations, as determined by U.S. GAAP.
Reconciliation of Net (Loss) / Income to Adjusted EBITDA
Six months ended June 30, (Expressed in thousands of U.S. Dollars) 2021 2022 Net (Loss) / Income 1,682 8,605 Add: Operating lease expenses 5,378 5,378 Add: Vessel depreciation 3,339 6,114 Add: Impairment on vessels 1,160 - Add: Interest and finance costs 2,837 6,927 Add: Loss / (Gain) on financial instruments (66) - Less: Gain on sale of vessels - (78) Adjusted EBITDA 14,330 26,946