Seanergy Maritime Holdings Corp. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2010
By Seanergy Maritime Holdings Corp, PRNEMonday, November 15, 2010
ATHENS, Greece, November 16, 2010 - Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ:
SHIP; SHIP.W) announced today its operating results for the third quarter and
nine months ended September 30, 2010.
Third Quarter 2010 Financial Highlights:
- Net Revenues of $29.0 million
- Adjusted EBITDA of $17.2 million
- Operating Income of $8.2 million
- Net Income of $2.9 million
Nine Months 2010 Financial Highlights:
- Net Revenues of $69.9 million
- Adjusted EBITDA of $40.9 million
- Operating Income of $17.3 million
- Net Income of $2.8 million
Dale Ploughman, the Company's Chief Executive Officer, stated:
"The third quarter of 2010 was another important quarter in our development
as we completed successfully the acquisition of the remaining 49% ownership
interest in Maritime Capital Shipping Limited ("MCS"). In addition, on
October 22, 2010 we completed the acquisition of the remaining 50% ownership
interest in Bulk Energy Transport (Holdings) Limited ("BET") and, as a
result, we now own 100% of MCS and BET and their fleets. These transactions
increased the size of our wholly owned fleet to 20 vessels, and we believe
these transactions significantly improved our income generating capabilities
and simplified our balance sheet.
Consistent with our strategy of seeking profitable long term
employment for our vessels, during the third quarter we secured new time
charters for four of our vessels. We believe that these new time charters are
with highly reputable charterers at attractive charter hire rates. Three of
these time charters have profit sharing arrangements. Our time charter
coverage is among the highest in the industry, which we believe provides cash
flow stability and protection against the volatile freight rate environment
coupled with upside potential, as five of our vessels in total are under
profit sharing arrangements that allow us to participate in market upswings.
We continue to have discussions with our charterers about the
vessels that are scheduled to be redelivered to us following the expiration
of their contracts. Consistent with our strategy, we seek to re-employ these
vessels at profitable rates.
We believe that dry bulk fundamentals remain stable as we
expect demand for core commodities, namely iron ore and coal, to remain
strong from China and India. Industry sources project that over the next 10
years, China's GDP will continue growing at 7% per year on average, while
over the next two years India's GDP is expected to grow at an annual rate of
9%. Industry sources further indicate that a catalyst for the dry bulk
industry in the fourth quarter 2010 is expected to be China's inventory
buildup of iron ore and coal ahead of winter.
Although the risk of oversupply is still a factor in the dry
bulk market, the rate of actual deliveries remains unclear. Industry sources
remain skeptical concerning the ability of Greenfield shipyards that have
never built vessels before, to deliver vessels ordered, while at the same
time vessel deliveries in 2011 reflect orders that were contracted at prices
significantly above current market levels. In addition, the capital needed to
finance the completion of these newbuildings remains a concern for many
companies. We expect to benefit from the fact that there have been fewer
deliveries of smaller types of vessels, such as the Handysize, which
constitute a significant portion of our fleet, as this should make this
segment more attractive for the owners.
Our focus on accretive growth will remain a primary goal as we
continue seeking attractive investments that can enhance shareholder value
for the longer term."
Christina Anagnostara, the Company's Chief Financial Officer,
stated: "As of September 30, 2010, our total assets were $713.9 million and
our total debt was $409.9 million. As of September 30, 2010, our cash
reserves were $76.3 million, reflecting $26.3 million in cash generated from
operations. We believe that our significant cash position and cash flow
visibility enable us to meet remaining debt repayments and anticipated
capital expenditures in 2010.
The Company now operates and owns a fleet of 20 vessels with
secured period employment of 98% for 2010, 78% for 2011, 38% for 2012 and 19%
for 2013, which in our opinion provides us with financial visibility with
upside potential."
Third Quarter 2010 Financial Results
Net Revenues for the third quarter of 2010
increased to $29.0 million from $22.4 million in the same quarter in 2009.
The Company operated a fleet of 20 vessels
on average during the third quarter of 2010, earning a time charter
equivalent ("TCE") rate of $16,153 as compared to an average of 8.7 vessels
and TCE rate of $30,052 during the third quarter of 2009. The decreased TCE
results from lower market imposed time charter rates earned by our vessels
whose original charters expired during the third quarter of 2009.
For the three months ended September 30,
2010, our vessel operating expenses increased to $8.1 million from $3.9
million in the same quarter of 2009 due to the increase of our fleet.
EBITDA was $15.7 million for the third
quarter of 2010 as compared to $21.6 million in the same quarter in 2009 due
to lower income received during the period. Adjusted EBITDA, which excludes
losses on interest rate swap agreements, was $17.2 million for the third
quarter of 2010.
Operating income amounted to $8.2 million
for the three months ended September 30, 2010, as compared to an operating
income of $17.4 million for the same quarter in 2009 due to higher operating
expenses and depreciation from the addition of vessels to our fleet.
Net Income was $2.9 million, or $0.03 per basic and diluted
share for the three months ended September 30, 2010, as compared to Net
Income of $14.0 million, or $0.57 per basic and $0.46 per diluted share, for
the same quarter in 2009, based on weighted average common shares outstanding
of 109,723,980 basic and diluted for 2010, 24,580,378, basic, and 30,386,931
diluted, for 2009.
The decrease in Net Income is primarily the result of a 46%
decrease in TCE to $16,153 per day for the three months ended September 30,
2010 as compared to $30,052 per day in the prior period as well as a $1.5
million increase in interest expense from $2.1 million to $3.6 million in the
respective period.
Nine Months 2010 Financial Results
Net Revenues for the nine months ended
September 30, 2010 were $69.9 million as compared to $70.7 million in the
same period in 2009. The decrease in revenues is mainly attributable to lower
TCE rates earned by our vessels. The decreased TCE results from lower market
imposed time charter rates earned by our vessels whose original charters
expired during the third quarter of 2009.
The Company operated a fleet of 15.4
vessels on average during the first nine months of 2010, earning a TCE rate
of $17,039 as compared to an average of 6.9 vessels and TCE rate of $42,127
during the same period of 2009. For the nine months ended September 30, 2010,
our vessel operating expenses increased to $20.2 million from $9.8 million in
the same period of 2009 due to the increase of our fleet.
EBITDA was $36.5 million for the first nine
months of 2010 as compared to $59.2 million in the same period in 2009 due to
lower income received during the period and loss on interest rate swap
agreements. Adjusted EBITDA, which excludes loss on interest rate swap
agreements, was $40.9 million for the first nine months of 2010.
Operating Income amounted to $17.4 million
for the nine months ended September 30, 2010, as compared to an Operating
Income of $39.6 million for the same period in 2009.
Net Income was $2.8 million, or $0.03 per basic and diluted
share for the period ended September 30, 2010, as compared to Net Income of
$33.3 million, or $1.44 per basic and $1.13 per diluted share, for the same
period in 2009, based on weighted average common shares outstanding of
80,568,056 basic and diluted for 2010 and 23,109,073, and 29,420,518 basic
and diluted for 2009 respectively.
The decrease in Net Income is primarily the result of a 60%
decrease in TCE to $17,039 per day for the nine months ended September 30,
2010 as compared to $42,127 per day in the prior period, as well as a $3.8
million increase in interest expense from $5.3 million to $9.1 million in the
respective period and losses of $4.3 million relating to interest rate swap
agreements of our debt facilities as compared to $1.4 million in the prior
period.
Fleet Employment
During the third quarter 2010, we secured time charters for
four of our vessels as follows:
The M/V African Glory, a 1998 built and 24,252 dwt Handysize dry bulk
carrier, entered into a two (2) year time charter agreement with a profit
sharing arrangement to a charterer we believe to be first class. The vessel
is chartered at a floor rate of $7,000 per day and a ceiling of $12,000 per
day, with a profit sharing arrangement of 75% for owners and 25% for
charterers to apply to any amount between the floor and the ceiling. For any
amount in excess of the ceiling the profit sharing arrangement will be 50%
for owners and 50% for charterers. The calculation of the rate is based on
the adjusted Time Charter Average of the Baltic Supramax Index ("BSI"). The
vessel commenced its new charter on November 11, 2010.
The M/V African Joy, a 1996 built and 26,482 dwt Handysize dry bulk
carrier, entered into a time charter agreement for a period of eleven (11) to
thirteen (13) months with a charterer we believe to be first class at a
charter rate of $14,000 per day. The charterer has the option to extend the
charter for another eleven (11) to thirteen (13) months at the same rate. The
vessel commenced its charter on October 30, 2010.
The M/V Asian Grace, a 1999 built and 20,412 dwt Handysize dry bulk
carrier, entered into a two (2) year time charter agreement with a profit
sharing arrangement to a charterer we believe to be first class. The vessel
is chartered at a floor rate of $7,000 per day and a ceiling of $11,000 per
day, with a profit sharing arrangement of 75% for the Company and 25% for the
charterer to apply to any amount between the floor and the ceiling, and for
any amount in excess of the ceiling, the profit sharing arrangement will be
50% for the Company and 50% for the charterer. The calculation of the rate is
based on the adjusted Time Charter Average of the BSI. The vessel commenced
its new charter on September 15, 2010.
The M/V Hamburg Max, a 1994 built, 72,338 dwt Panamax vessel, was entered
into a time charter agreement for a period of about twenty three (23) to
about twenty five (25) months with a profit sharing arrangement to a
charterer we believe to be first class. The vessel is chartered with a floor
rate of $21,500 per day and a ceiling of $25,500 per day, with a 50% profit
sharing arrangement to apply to any amount in excess of the ceiling. The
spread between floor and ceiling will accrue 100% to the Company. The
calculation of the rate is based on the Time Charter Average of the Baltic
Panamax Index ("BPI"). The vessel commenced its new charter on August 31,
2010.
Following these charter arrangements, the Company has secured 98% of its
operating days for 2010, 78% for 2011, 38% for 2012 and 19% for 2013 under
period employment.
Conference Call Details:
The Company's management team will host a conference call to
discuss the financial results tomorrow, November 17, 2010 at 10:00 A.M. EST.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1(866) 819-7111 (from the US),
0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301 (from outside the
US). Please quote "Seanergy".
A replay of the conference call will be available until
November 24, 2010. The United States replay number is 1(866) 247-4222; from
the UK 0(800) 953-1533; the standard international replay number is
(+44) (0) 1452 550 000 and the access code required for the replay is:
2094507#.
Slides and Audio Webcast:
There will also be a simultaneous live webcast of the
conference call over the Internet, through the Company's website
(www.seanergymaritime.com). Participants desiring to view the live
webcast should register on the website approximately 10 minutes prior to the
start of the webcast.
Fleet Profile as of November 16, 2010
Vessel Name Vessel Capacity Year Charter Rate Charter
Class (DWT) Built ($) Expiry
(latest)
M/V Bremen Max (1) Panamax 73,503 1993 n/a n/a
M/V Hamburg Max (2) Panamax 72,338 1994 21,500 Oct. 2012
M/V Davakis G. Supramax 54,051 2008 21,000 Jan. 2011
M/V Delos Ranger Supramax 54,051 2008 20,000 Mar. 2011
M/V African Zebra (3)Handymax 38,623 1985 7,500 Sep. 2011
M/V African Oryx (3) Handysize 24,110 1997 7,000 Sep. 2011
M/V BET Commander Capesize 149,507 1991 24,000 Dec. 2011
M/V BET Fighter Capesize 173,149 1992 25,000 Sep. 2011
M/V BET Prince Capesize 163,554 1995 25,000 Jan. 2012
M/V BET Scouter Capesize 171,175 1995 26,000 Oct. 2011
M/V BET Intruder Panamax 69,235 1993 15,500 Sep. 2011
M/V Fiesta Handysize 29,519 1997 Time Charter Nov. 2013
Average of
BHSI increased
by 100.63%
minus Opex
M/V Pacific Fantasy Handysize 29,538 1996 Time Charter Jan. 2014
Average of
BHSI increased
by 100.63%
minus Opex
M/V Pacific Fighter Handysize 29,538 1998 Time Charter Nov. 2013
Average of
BHSI increased
by 100.63%
minus Opex
M/V Clipper Freeway Handysize 29,538 1998 Time Charter Feb. 2014
Average of
BHSI increased
by 100.63%
minus Opex
M/V African Joy (4) Handysize 26,482 1996 14,000 Nov. 2011
M/V African Glory (5)Handysize 24,252 1998 7,000 Nov. 2012
M/V Asian Grace (6) Handysize 20,412 1999 7,000 Sep. 2012
M/V Clipper Glory Handysize 29,982 2007 25,000 Aug. 2012
M/V Clipper Grace Handysize 29,987 2007 25,000 Aug. 2012
Total 1,292,544 13.0 yrs
(1) The M/V Bremen Max is expected to be employed following
the completion of its current drydocking due by end of November 2010.
(2) Represents profit sharing arrangement at a floor rate of
$21,500 per day and a ceiling of $25,500 per day, with a 50% profit sharing
arrangement to apply to any amount in excess of the ceiling. The spread
between floor and ceiling will accrue 100% to the Company. The base used for
the calculation of the rate is the Time Charter Average of the BPI.
(3) Represents floor charter rates excluding a 50% profit
share distributed equally between the Company and the charterer calculated on
the adjusted Time Charter Average of the BSI.
(4) The charterer has the option to extend the time charter
agreement for an additional 11 to 13 months at the same rate.
(5) Represents profit sharing arrangement at a floor rate of
$7,000 per day and a ceiling of $12,000 per day, with a profit sharing
arrangement of 75% for the Company and 25% for the charterer applicable
between the $7,000 floor and $12,000 ceiling and, for any amount in excess of
the ceiling, profit sharing of 50% for the Company and 50% for the charterer.
The calculation of the rate will be based on the adjusted Time Charter
Average of the BSI. The two (2) year time charter agreement with a profit
sharing arrangement is an open ended contract with a 6 months mutual notice
following November 2012.
(6) Represents profit sharing arrangement at a floor rate of
$7,000 per day and a ceiling of $11,000 per day, with a profit sharing
arrangement of 75% for the Company and 25% for the charterer applicable
between the $7,000 floor and $11,000 ceiling and, for any amount in excess of
the ceiling, profit sharing of 50% for the Company and 50% for the charterer.
The calculation of the rate will be based on the adjusted Time Charter
Average of the BSI. The two (2) year time charter agreement with a profit
sharing arrangement is an open ended contract with a 6 months mutual notice
following September 2012.
Fleet Data:
Nine Nine Three Three
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2010 30, 2009 30, 2010 30, 2009
Fleet Data
Average number of vessels (1) 15.4 6.9 20.0 8.7
Ownership days (2) 4,200 1,883 1,840 797
Available days (3) 4,020 1,654 1,762 739
Operating days (4) 3,998 1,646 1,751 735
Fleet utilization (5) 95.2% 87.4% 95.2% 92.2%
Fleet utilization excluding
drydocking off hire days (6) 99.5% 99.5% 99.4% 99.5%
Average Daily Results
TCE rate (7) 17,039 42,127 16,153 30,052
Vessel operating expenses (8) 4,810 5,181 4,408 4,937
Management fee (9) 457 572 374 580
Total vessel
operating expenses (10) 5,267 5,753 4,782 5,517
(1) Average number of vessels is the number of vessels that
constituted the Company's fleet for the relevant period, as measured by the
sum of the number of days each vessel was a part of the Company's fleet
during the relevant period divided by the number of calendar days in the
relevant period.
(2) Ownership days are the total number of days in a period
during which the vessels in a fleet have been owned. 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.
(3) Available days are the number of ownership days less the
aggregate number of days that vessels are off-hire due to major repairs, dry
dockings or special or intermediate surveys. The shipping industry uses
available days to measure the number of ownership days in a period during
which vessels should be capable of generating revenues. During the nine
months ended September 30, 2010, the Company incurred 180 off hire days for
vessel scheduled drydocking. During the three months ended September 30,
2010, the Company incurred 78 off hire days for vessel scheduled drydocking.
(4) Operating days are the number of available days in a
period less the aggregate number of days that vessels are off-hire due to any
reason, including unforeseen circumstances. The shipping industry uses
operating days to measure the aggregate number of days in a period during
which vessels actually generate revenues.
(5) Fleet utilization is the percentage of time that our
vessels were generating revenue, and is determined by dividing operating days
by ownership days for the relevant period.
(6) Fleet utilization excluding drydocking off hire days is
calculated by dividing the number of the fleet's operating days during a
period by the number of available days during that period. The shipping
industry uses fleet utilization excluding drydocking off hire days to measure
a Company's efficiency in finding suitable employment for its vessels and
excluding the amount of days that its vessels are off-hire for reasons such
as scheduled repairs, vessel upgrades, or dry dockings or special or
intermediate surveys.
(7) TCE rates are defined as our net revenues less voyage
expenses during a period divided by the number of our operating days during
the period, which is consistent with industry standards. Voyage expenses
include port charges, bunker (fuel oil and diesel oil) expenses, canal
charges and other commissions.
(In thousands of US Dollars, except operating days and daily time charter
equivalent rate)
Nine Months Ended Three Months Ended
September 30, September 30,
2010 2009 2010 2009
Net revenues from 69,867 70,662 29,046 22,352
vessels
Voyage expenses (1,746) (1,321) (762) (264)
Net operating 68,121 69,341 28,284 22,088
revenues
Operating days 3,998 1,646 1,751 735
Daily time charter
equivalent rate 17,039 42,127 16,153 30,052
(8) Average daily vessel operating expenses, which include
crew costs, provisions, deck and engine stores, lubricating oil, insurance,
maintenance and repairs, are calculated by dividing vessel operating expenses
by ownership days for the relevant time periods:
(In thousands of US Dollars, except ownership days and daily vessel
operating expenses)
Nine Months Ended Three Months Ended
September 30, September 30,
2010 2009 2010 2009
Operating expenses 20,200 9,756 8,110 3,935
Ownership days 4,200 1,883 1,840 797
Daily vessel 4,810 5,181 4,408 4,937
operating expenses
(9) Daily management fees are calculated by dividing total
management fees by ownership days for the relevant time period.
(10) Total vessel operating expenses ("TVOE") is a measurement
of total expenses associated with operating the vessels. TVOE is the sum of
vessel operating expenses and management fees. Daily TVOE is calculated by
dividing TVOE by fleet ownership days for the relevant time period.
Recent Developments:
Acquisition of remaining 50% ownership interest in BET
On October 22, 2010, we completed the acquisition from Mineral
Transport Holdings Inc. ("Mineral Transport") of the remaining 50% ownership
interest in BET for a consideration of approximately $33.0 million, which was
paid in the form of: (i) $7.0 million in cash paid to Mineral Transport from
our cash reserves and (ii) 24,761,905 of our common shares, with an aggregate
agreed value of $26.0 million, that were issued to the Restis affiliate
shareholders as nominees of Mineral Transport. As a result of the acquisition
of the 50% interest, we now have 100% ownership of BET. We now have a
wholly-owned operating fleet of 20 dry bulk vessels, consisting of four
Capesize, three Panamax, two Supramax, one Handymax and 10 Handysize dry bulk
carriers that have a combined cargo-carrying capacity of approximately 1.3
million dwt and an average fleet age of 13.0 years.
Drydocking and Maintenance Schedule
The BET Intruder's scheduled drydocking commenced on August
26, 2010, and was completed on October 27, 2010. The total cost of the BET
Intruder's drydocking is approximately $1.3 million.
The African Joy's scheduled drydocking commenced on October 2,
2010 and was completed on October 29, 2010. The total cost of the African
Joy's drydocking is approximately $1.15 million.
The Clipper Grace's scheduled drydocking commenced on October
23, 2010 and was completed on November 4, 2010. The total cost of the Clipper
Grace's drydocking is approximately $0.9 million.
The BET Fighter's scheduled drydocking commenced on September
3, 2010 and was completed on November 16, 2010. The total cost of the BET
Fighter's drydocking is approximately $1.4 million.
The Bremen Max's scheduled drydocking commenced on September
28, 2010 and is expected to be completed on November 25, 2010. The total cost
of the Bremen Max's drydocking is estimated to be approximately $0.8 million.
Seanergy Maritime Holdings Corp.
Reconciliation of Net Income to Adjusted EBITDA
(All amounts expressed in thousands of U.S. Dollars)
Nine Nine Three Three
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2010 30, 2009 30, 2010 30, 2009
Net income attributable 2,761 33,265 2,939 13,983
to Seanergy Maritime
Holdings
Plus: Net income 1,509 (67) - (67)
attributable to the
noncontrolling interest
Plus: Interest and 8,730 4,882 3,599 2,006
finance costs, net
(including interest
income)
Plus: Income taxes 16 - (15) -
Plus: Depreciation and 23,513 21,113 9,129 5,673
amortization
EBITDA 36,529 59,193 15,652 21,595
Plus: Loss on interest 4,335 1,411 1,574 1,411
rate swaps
Adjusted EBITDA 40,864 60,604 17,226 23,006
Seanergy Maritime Holdings Corp.
Reconciliation of Net Cash Provided by Operating Activities to
Adjusted EBITDA
(All amounts expressed in thousands of U.S. Dollars)
Nine Nine Three Three
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2010 30, 2009 30, 2010 30, 2009
Net cash flow provided by 26,297 36,445 9,908 1,945
operating activities
Changes in operating assets 1,062 8,083 594 9,867
and liabilities
Fair value of contracts 240 42 80 42
Change in fair value of (773) (967) 1,195 (967)
financial instruments
Payments for dry-docking 1,507 4,437 587 2,192
Amortization and write-off of (550) (542) (296) (303)
deferred charges
Interest and finance costs, 8,730 4,882 3,599 2,006
net (includes interest
income)
Gain from acquisition - 6,813 - 6,813
Income taxes 16 - (15) -
EBITDA 36,529 59,193 15,652 21,595
Plus: Loss on interest rate 4,335 1,411 1,574 1,411
swaps
Adjusted EBITDA 40,864 60,604 17,226 23,006
EBITDA consists of earnings before interest and finance cost,
taxes, depreciation and amortization. Adjusted EBITDA consists of earnings
before interest and finance cost, taxes, depreciation and amortization and
gain or losses on interest rate swaps. EBITDA and adjusted EBITDA are not
measurements of financial performance under accounting principles generally
accepted in the United States of America, and do not represent cash flow from
operations. EBITDA and adjusted EBITDA are presented solely as supplemental
disclosures because management believes that they are common measures of
operating performance in the shipping industry.
September
30, 2010 December
(unaudited) 31, 2009
ASSETS
Current assets:
Cash and cash equivalents 65,826 63,607
Restricted cash 10,442 -
Accounts receivable trade, net 819 495
Due from related parties 287 265
Inventories 1,704 1,126
Prepaid insurance expenses 668 623
Prepaid expenses and other current assets
- related parties 76 58
Insurance claims 238 1,260
Other current assets 711 39
Total current assets 80,771 67,473
Fixed assets:
Vessels, net 605,575 444,820
Office equipment, net 33 20
Total fixed assets 605,608 444,840
Other assets
Goodwill 17,275 17,275
Deferred charges 10,051 8,684
Other non-current assets 180 180
TOTAL ASSETS 713,885 538,452
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt 53,380 33,206
Trade accounts and other payables 2,558 990
Due to underwriters - 19
Due to related party 7,000 -
Accrued expenses 3,808 1,719
Accrued interest 1,094 1,508
Financial instruments 5,421 3,556
Deferred revenue - related party 1,035 894
Deferred revenue 1,500 246
Total current liabilities 75,796 42,138
Long-term debt, net of current portion 356,507 267,360
Financial instruments, net of current
portion 3,943 1,550
Below market acquired time charters 345 585
Total liabilities 436,591 311,633
Commitments and contingencies -
EQUITY
Seanergy shareholders' equity
Preferred stock, $0.0001 par value;
1,000,000 shares authorized; none issued - -
Common stock, $0.0001 par value;
500,000,000 and 200,000,000 authorized
shares as at September 30, 2010 and
December 31, 2009, respectively;
84,962,075 and 33,255,170 shares, issued
and outstanding as at September 30, 2010
and December 31, 2009, respectively 8 3
Additional paid-in capital 279,271 213,232
Accumulated deficit (1,985) (4,746)
Total Seanergy shareholders' equity 277,294 208,489
Noncontrolling interest - 18,330
Total equity 277,294 226,819
TOTAL LIABILITIES AND EQUITY 713,885 538,452
Three months ended Nine months ended
September 30, September 30,
2010 2009 2010 2009
Revenues:
Vessel revenue
- related
party 11,538 21,103 35,606 70,651
Vessel revenue 18,539 1,887 36,677 1,887
Commissions -
related party (401) (618) (1,227) (1,856)
Commissions (630) (20) (1,189) (20)
Vessel 29,046 22,352 69,867 70,662
revenue, net
Expenses:
Direct voyage
expenses (537) (42) (1,072) (480)
Vessel
operating
expenses (8,110) 3,935) (20,200) (9,756)
Voyage
expenses -
related party (225) (222) (674) (841)
Management
fees (129) - (187) -
Management
fees - related
party (560) (462) (1,731) (1,078)
General and
administration
expenses (1,999) (1,280) (4,621) (4,088)
General and
administration
expenses -
related party (174) (193) (522) (548)
Amortization
of deferred
dry-docking
costs (922) (387) (2,389) (397)
Depreciation (8,207) (5,286) (21,124) (20,716)
Gain from
acquisition - 6,813 - 6,813
Operating
income 8,183 17,358 17,347 39,571
Other income
(expense),
net:
Interest and
finance costs (3,636) (2,040) (9,048) (4,859)
Interest and
finance costs
- shareholders - (74) - (386)
Interest
income 37 108 318 363
Loss on
financial
instruments (1,574) (1,411) (4,335) (1,411)
Foreign
currency
exchange
(loss)/gain,
net (86) (25) 4 (80)
(5,259) (3,442) (13,061) (6,373)
Net income
before taxes 2,924 13,916 4,286 33,198
Income taxes 15 - (16) -
Net income 2,939 13,916 4,270 33,198
Less: Net
loss/ (income)
attributable
to the
noncontrolling
interest - 67 (1,509) 67
Net income
attributable
to Seanergy
Maritime
Holdings Corp.
Shareholders 2,939 13,983 2,761 33,265
Net income per
common share
Basic 0.03 0.57 0.03 1.44
Diluted 0.03 0.46 0.03 1.13
Weighted
average common
shares
outstanding
Basic 109,723,980 24,580,378 80,568,056 23,109,073
Diluted 109,723,980 30,386,931 80,568,056 29,420,518
Total
Common stock Addit- Seanergy Non-
ional (Accum- share- cont-
# of Par paid-in ulated holders' rolling Total
Shares Value capital deficit) equity interest equity
Balance,
December 31,
2008 22,361,227 2 166,361 (34,798) 131,565 - 131,565
Net income
for the nine
months ended
September 30,
2009 - - - 19,283 19,283 - 19,283
Balance,
September 30,
2009 22,361,227 2 166,361 (15,515) 150,848 - 150,848
Total
Common stock Addit- Seanergy Non-
ional (Accum- share- cont-
# of Par paid-in ulated holders' rolling Total
Shares Value capital deficit) equity interest equity
Balance,
December 31,
2009 33,255,170 3 213,232 (4,746) 208,489 18,330 226,819
Issuance of
common stock 26,945,000 3 28,523 - 28,526 - 28,526
Consolidation
with
subsidiaries
acquired 24,761,905 2 37,516 - 37,518 (19,839) 17,679
Net income
for the nine
months ended
September 30,
2010 - - - 2,761 2,761 1,509 4,270
Balance,
September 30,
2010 84,962,075 8 279,271 (1,985) 277,294 - 277,294
Nine months ended
September 30,
2010 2009
Cash flows from operating activities:
Net income 4,270 33,198
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 21,124 20,716
Amortization of deferred finance charges 550 542
Amortization of deferred dry-docking costs 2,389 397
Payments for dry-docking (1,507) (4,437)
Change in fair value of financial
instruments 773 967
Amortization of acquired time charters (240) (42)
Gain on acquisition - (6,813)
Changes in operating assets and
liabilities:
(Increase) decrease in -
Due from related parties (22) (3,098)
Inventories (315) 1,137
Accounts receivable trade, net (313) 232
Insurance claims 1,028 -
Other current assets (107) (320)
Prepaid expenses - (10)
Prepaid insurance expenses 138 48
Prepaid expenses and other current assets
- related parties (18) 1,587
Other non-current assets - (180)
Trade accounts and other payables 165 (3,912)
Due to underwriters (19) (343)
Accrued expenses (1,184) (958)
Accrued charges on convertible note due to
shareholders - 670
Premium amortization on convertible note
due to shareholders - (379)
Accrued interest (918) 227
Deferred revenue - related party 233 (2,846)
Deferred revenue 270 62
Net cash provided by operating activities 26,297 36,445
Cash flows from investing activities:
Additions to vessels - (6)
Additions to office furniture and
equipment (31) (15)
Acquisition of subsidiary, including cash
acquired 17,923 36,374
Due to related party (3,000) -
Net cash provided by investing activities 14,892 36,353
Cash flows from financing activities:
Deemed distribution upon acquisition of
MCS (2,064) -
Net proceeds from issuance of common stock 28,526 -
Repayment of long term debt (57,602) (47,750)
Deferred finance charges (841) -
Noncontrolling interest contribution - 10,000
Increase in restricted cash (6,989) (2,183)
Net cash (used in) financing activities (38,970) (39,933)
Net increase in cash and cash equivalents 2,219 32,865
Cash and cash equivalents at beginning of
period 63,607 27,543
Cash and cash equivalents at end of period 65,826 60,408
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest 7,659 4,089
Non cash investing activities due to
related party 7,000 -
Issuance of common shares at fair value
for the acquisition of BET 30,952 -
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp., the successor to Seanergy
Maritime Corp., is a Marshall Islands corporation with its executive offices
in Athens, Greece. The Company is engaged in the transportation of dry bulk
cargoes through the ownership and operation of dry bulk carriers.
The Company's initial fleet comprised two Panamax, two
Supramax, one Handymax and one Handysize dry bulk carriers that Seanergy
purchased and took delivery of in the third quarter of 2008 from companies
associated with members of the Restis family. In August 2009, the Company
acquired a controlling interest in BET, which owns four Capesize and one
Panamax dry bulk carriers. In May 2010, the Company acquired a controlling
interest in MCS, which owns nine Handysize dry bulk carriers. In September
2010, the Company completed the acquisition of the remaining 49% in MCS, and
in October 2010 the Company completed the acquisition of the remaining 50% in
BET.
Following the MCS and BET acquisitions, the Company has a
wholly-owned operating fleet of 20 drybulk carriers (four Capesize, three
Panamax, two Supramax, one Handymax and ten Handysize vessels) with a total
carrying capacity of approximately 1,292,544 dwt and an average fleet age of
13 years.
The Company's common stock and warrants trade on the NASDAQ
Global Market under the symbols "SHIP" and "SHIP.W", respectively.
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 and the Company's growth strategy and measures to implement such
strategy. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and similar
expressions are intended to identify forward-looking statements. Although the
Company believes that such expectations will prove to have been correct,
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 scope and timing of
Securities and Exchange Commission ("SEC") and other regulatory agency
review, competitive factors in the market in which the Company operates;
risks associated with operations outside the United States; and other factors
listed from time to time in the Company's filings with the SEC. The Company's
filings can be obtained free of charge on the SEC's website at www.sec.gov.
The Company expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with respect
thereto or any change in events, conditions or circumstances on which any
statement is based.
For further information please contact:
Seanergy Maritime Holdings Corp.
Dale Ploughman - Chief Executive Officer
Christina Anagnostara - Chief Financial Officer
Tel: +30-210-9638461
E-mail: ir@seanergymaritime.com
Investor Relations / Media
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: +1(212)661-7566
E-mail: seanergy@capitallink.com
For further information please contact: Seanergy Maritime Holdings Corp., Dale Ploughman - Chief Executive Officer, Christina Anagnostara - Chief Financial Officer, Tel: +30-210-9638461, E-mail: ir at seanergymaritime.com; Investor Relations / Media, Capital Link, Inc., Paul Lampoutis, 230 Park Avenue Suite 1536, New York, NY 10169, Tel: +1(212)661-7566, E-mail: seanergy at capitallink.com
Tags: Athens, greece, November 16, Seanergy Maritime Holdings Corp
