Financial Highlights of the First Quarter of 2023:
- Net Loss of
$4.9 million and loss per share (basic & diluted) of$0.64 - Adjusted net loss1 of
$3.7 million and adjusted loss per share1 of$0.48
Other Highlights and Developments:
- Quarterly cash dividend of
$0.075 per share for Q1 2023 - resulting in total cash dividends of$1.15 per share or$8.7 million declared sinceNovember 2022 - Agreements to acquire six vessels of total
$126 million , consisting of two Capesize and two Kamsarmax vessels, as well as two Panamax vessels through bareboat charter agreements with purchase options - New financing transaction of
$24.5 million
GLYFADA,
For the quarter ended
Cash and cash-equivalents as of
“Following the highly profitable sales of three of our tankers by the end of 2022, our average fleet size in Q1 2023 was reduced to less than 3 ships including our remaining tanker vessel which was drydocked for its special survey for most of the first quarter. Our profitable ship disposals affected our quarterly operating results, recording an average daily TCE of
“Within February and March, we took delivery of four dry bulk vessels, two Capesize, one Panamax and one Kamsarmax, with an additional Kamsarmax delivered in April and one more Panamax expected to be delivered in the third quarter of the year. In addition, our tanker has been operational since the beginning of Q2, following the completion of her special survey.
“In the second quarter to date, we have covered 71% of our ownership days at an average TCE of
“Looking forward, on a fully-delivered basis, we will operate a fleet of seven dry bulk vessels and one tanker vessel, with moderate levels of leverage and satisfactory levels of liquidity, allowing us to focus on further growth opportunities as well as shareholder rewards.
“In this context, we are pleased to announce another regular cash dividend distribution for the first quarter, bringing the total cash dividends that have been declared in the last six months to
_______________
1 Adjusted net loss per share, Adjusted net loss and negative Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted loss per share, Adjusted net loss, and negative Adjusted EBITDA to net income, the most directly comparable
2 Please refer to our detailed Second Quarter 2023 TCE Guidance and footnote 3 below.
Current Company Fleet:
Sector | Capacity (DWT) | Year Built | Yard | Employment Type | Minimum | Maximum | |
Gloriuship | Dry Bulk / Capesize | 171,314 | 2004 | Hyundai | T/C Index Linked(2) | Feb-24 | Jun-24 |
Goodship | Dry Bulk / Capesize | 177,536 | 2005 | Mitsui | T/C Index Linked(2) | Jun-23 | Dec-23 |
Tradership | Dry Bulk / Capesize | 176,925 | 2006 | Namura | T/C Index Linked(2) | Aug-24 | Jan-25 |
Chrisea(3) | Dry Bulk / Panamax | 78,173 | 2013 | T/C Index Linked(2) | Feb-24 | Jun-24 | |
Oasea | Dry Bulk / Kamsarmax | 82,217 | 2010 | Thuneishi | T/C Index Linked(2) | Mar-24 | Jul-24 |
Cretansea | Dry Bulk / Kamsarmax | 81,508 | 2009 | Universal | T/C Index Linked(2) | Apr-24 | Jul-24 |
Epanastasea | Tanker / LR2 | 109,647 | 2008 | Fixed Rate T/C(4) | Sep-23 | Nov-23 | |
Total/Average age | 877,320 | 15.2 years |
(1) The latest redelivery dates do not include any additional optional periods.
(2) “T/C” refers to a time charter agreement. Under these index-linked T/Cs, 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 FFA Rates for the selected period, and has done so for certain vessels as part of its freight hedging strategy, as described below under “Second Quarter 2023 TCE Guidance.”
(3) The vessel is technically and commercially operated by the Company on the basis of an 18-month bareboat charter-in contract with the owners of the vessel, including a purchase option at the end of the bareboat charter in favour of the Company.
(4) The daily charter hire is currently
Fleet to be delivered*:
Sector | Capacity (DWT) | Year Built | Yard | |
tbr Synthesea | Dry Bulk / Panamax | 78,020 | 2015 | Sasebo |
*The M/V Synthesea is expected to be delivered to the Company between July and
Fleet Data:
(Amounts in
Q1 2023 | |||
Ownership days(1) | 305 | ||
Operating days(2) | 245 | ||
Fleet utilization(3) | 80.3 | % | |
TCE rate(4) | $ | 10,294 | |
Daily Vessel Operating Expenses(5) | $ | 7,764 |
(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. 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 | |||
Vessel revenue, net | 2,821 | ||
Less: Voyage expenses | 299 | ||
Time charter equivalent revenues | 2,522 | ||
Operating days | 245 | ||
TCE rate | $ | 10,294 |
(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 of acquired vessels, 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 | |||
Vessel operating expenses | 3,111 | ||
Less: Pre-delivery expenses | 743 | ||
Vessel operating expenses before pre-delivery expenses | 2,368 | ||
Ownership days | 305 | ||
Daily Vessel Operating Expenses | $ | 7,764 |
Net Loss to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of
Q1 2023 | ||
Net loss | (4,887 | ) |
Add: Interest and finance costs, net | 970 | |
Add: Depreciation and amortization | 1,226 | |
EBITDA | (2,691 | ) |
Add: Stock based compensation | 1,218 | |
Adjusted EBITDA | (1,473 | ) |
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income, 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 this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA and Adjusted EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with
Net Loss and Adjusted Net Loss Reconciliation and calculation of Adjusted Loss Per Share
(In thousands of
Q1 2023 | ||
Net loss | (4,887 | ) |
Add: Stock based compensation | 1,218 | |
Adjusted net loss | (3,669 | ) |
Adjusted net loss – common stockholders, basic and diluted | (3,729 | ) |
Adjusted loss per common share, basic and diluted | (0.48 | ) |
Weighted average number of common shares outstanding, basic and diluted | 7,766,681 |
To derive Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we exclude certain 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 stock based compensation, 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 | ||
Interest and finance costs, net | (970 | ) |
Add: Amortization of deferred finance charges and other discounts | 174 | |
Cash interest and finance costs | (796 | ) |
Second Quarter 2023 TCE Guidance:
As of the date hereof, approximately 71% 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) | 182 | 16,115.45 |
TCE - fixed rate | 87 | 38,284.78 |
TCE – index-linked unhedged | 336 | 13,617.62 |
Total / Average | 605 | 17,922.61 |
_______________
3 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
Committed to its dividend strategy, the Company also declared a cash dividend of
Vessel transactions and commercial updates
Delivery of M/V Goodship and M/V Tradership
In
Delivery of M/V Oasea and M/V Cretansea
In
In
Bareboat Agreement for a Panamax bulk carrier – M/V Chrisea
In
Bareboat Agreement for a Panamax bulk carrier – M/V Synthesea
In
M/T Epanastasea Employment Update
From
In view of the continued strength of vessel values in the tanker market, the Company is actively considering selling the vessel and is currently in advanced discussions with prospective buyers.
Financing Updates
On each of
Update on Number of Common Shares Issued and Outstanding
As of
Conference Call:
The Company’s management will host a conference call to discuss the financial results today,
Audio Webcast:
There will be a live, and then archived, webcast of the conference call through the Company’s website. To listen to the archived audio file, visit our website, in the “Investors” section. Participants to the live webcast should register on the 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 and restricted cash | 20,001 | 69,932 | |||||
Vessels and right-of-use assets, net and advances for vessels’ acquisitions | 117,028 | 50,200 | |||||
Other assets | 5,332 | 5,523 | |||||
TOTAL ASSETS | 142,361 | 125,655 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Long-term debt, lease liability and other financial liabilities, net of deferred finance costs | 69,455 | 42,606 | |||||
Other liabilities | 10,963 | 18,481 | |||||
Stockholders’ equity | 61,943 | 64,568 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 142,361 | 125,655 | |||||
* Derived from the audited consolidated financial statements as of the period as of that date
Unaudited Condensed Consolidated Statements of Operations
(In thousands of
and per share data, unless otherwise stated)
Three months period ended | ||
Vessel revenue, net | 2,821 | |
Expenses: | ||
Voyage expenses | (299 | ) |
Vessel operating expenses | (3,111 | ) |
Management fees | (232 | ) |
General and administrative expenses | (1,819 | ) |
Depreciation and amortization | (1,226 | ) |
Operating loss | (3,866 | ) |
Other expenses: | ||
Interest and finance costs, net | (970 | ) |
Other, net | (51 | ) |
Total other expenses, net: | (1,021 | ) |
Net loss | (4,887 | ) |
Net loss attributable to common stockholders | (4,947 | ) |
Net loss per common share, basic and diluted | (0.64 | ) |
Weighted average number of common shares outstanding, basic and diluted | 7,766,681 | |
Unaudited Condensed Consolidated Cash Flow Data
(In thousands of
Three months ended | |||
Net cash used in operating activities | (4,060 | ) | |
Net cash used in investing activities | (52,135 | ) | |
Net cash provided by financing activities | 6,264 | ||
About
The Company is incorporated under the laws of the Republic of the
Please visit the Company’s website at: www.unitedmaritime.gr
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 may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. 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, shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; the impact of changes in regulatory requirements or actions taken by regulatory authorities on the Company's operating or financial results; the Company's financial condition and liquidity, including its ability to service its indebtedness or to pay dividends; competitive factors in the market in which the Company operates; increased operating costs associated with vessel aging; vessel damage; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; dependence on affiliates of the Company’s former parent and third-party managers to operate the Company’s business; availability of crew, number of off-hire days, classification survey requirements and insurance costs; changes in the Company’s relationships with contract counterparties; potential liability from future litigation and incidents involving the Company’s vessels; broader market impacts arising from war (or threatened war) or international hostilities, such as between
For further information please contact:
United Investor Relations
Tel: +30 213 0181 522
E-mail: ir@usea.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
Tel: (212) 661-7566
E-mail: usea@capitallink.com
Source:
2023 GlobeNewswire, Inc., source