ATHENS, Greece, March 24, 2009 (GLOBE NEWSWIRE) -- Aries Maritime Transport Limited (Nasdaq:RAMS) today reported its unaudited financial results for the three and twelve months ended December 31, 2008. The following financial review discusses the results for the three months ended December 31, 2008, compared with the results for the three months ended December 31, 2007 as well as results for the twelve months ended December 31, 2008, compared with the results for the twelve months ended December 31, 2007. In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius, which resulted in a gain on sale of $13.6 million during the second quarter of 2008. The results for these vessels and related gain on disposal are reported as discontinued operations.
Fourth Quarter Results
Revenues of $19.2 million from continuing operations were recorded for the three months ended December 31, 2008, compared to revenues of $19.8 million recorded for the three months ended December 31, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $16.5 million and $18.3 million for the three month periods ended December 31, 2008 and December 31, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization for the Saronikos Bridge and the Nordanvind as well as lower charter rates for the MSC Seine and the Chinook during the three months ended December 31, 2008, compared to the three months ended December 31, 2007. Vessel operating days totalled 1,104 for both quarters. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Total revenue days for the three months ended December 31, 2008, were 1,018 and total revenue days for the three months ended December 31, 2007, were 1,007. The Company defines revenue days as the total days the vessels were not off hire or out of service.
Net loss from continuing operations was $40.5 million or $1.41 basic and diluted loss per share, for the three months ended December 31, 2008, compared to a net loss of $5.8 million, or $0.21 basic and diluted loss per share, recorded for the three months ended December 31, 2007. The results for the fourth quarter of 2008 include a $30.1 million non-cash impairment charge on the value of the Company's three container vessels as well as a $5.8 million non-cash loss from the change in the fair value of derivatives. The results for the same period of 2007 include a $2.5 million non-cash loss from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the three months ended December 31, 2008, was $42 million, or $1.46 basic and diluted loss per share, compared to a net loss of $7.0 million, or $0.25 basic and diluted loss per share, recorded for the three months ended December 31, 2007.
Adjusted EBITDA for the three months ended December 31, 2008, was $6.5 million compared to $7.2 million for the three months ended December 31, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)
Jeff Parry, Chief Executive Officer, commented, "During the fourth quarter and year-to-date, Aries' new management team continued to take proactive measures aimed at improving the Company's financial performance. Specifically, our wholly owned technical management subsidiary, AMT Management, has become a fully licensed ship manager. In accomplishing this important goal, we have strengthened our ability to maintain a cost efficient operating structure and increase the utilization of our diversified fleet. We also continued to implement our period charter approach through new contracts for two double-hull products tankers. Based on our progress to date, the Company posted an increase in Adjusted EBITDA to $6.5 million for the fourth quarter of 2008 from $2.1 million for the third quarter of 2008. Management remains dedicated to improving the Company's ship operations as we continue to execute our comprehensive turnaround plan. Going forward, we will maintain our focus on positioning Aries for long-term success and enhancing shareholder value."
Twelve-Month Results
Revenues of $81.3 million from continuing operations were recorded for the twelve months ended December 31, 2008, compared to revenues of $81.1 million recorded for the twelve months ended December 31, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $64.8 million and $70.9 million for the twelve month periods ended December 31, 2008, and December 31, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization as well as lower charter rates for certain vessels in the Company's fleet during the twelve months ended December 31, 2008, compared to the twelve months ended December 31, 2007. During the twelve months ended December 31, 2008, total vessel operating days were 4,392 compared to total vessel operating days of 4,380 for the twelve months ended December 31, 2007. Total revenue days for the twelve months ended December 31, 2008, and December 31, 2007, were 4,100 and 4,159, respectively.
Net loss from continuing operations was $48.7 million or $1.70 basic and diluted loss per share, for the twelve months ended December 31, 2008, compared to net loss of $1.9 million, or $0.07 basic and diluted loss per share, recorded for the twelve months ended December 31, 2007. The results for the twelve months ended December 31, 2008, include a $30.1 million non-cash impairment charge on the value of the Company's three container vessels and a $6.5 million non-cash loss from the change in the fair value of derivatives. Results for the twelve months ended December 31, 2007 include a $4.1 million non-cash loss from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the twelve months ended December 31, 2008, was $39.4 million, or $1.38 basic and diluted loss per share, compared to a net loss of $8.7 million, or $0.31 basic and diluted loss per share, recorded for the twelve months ended December 31, 2007.
Adjusted EBITDA for the twelve months ended December 31, 2008 was $24.6 million compared to $40.8 million for the twelve months ended December 31, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)
Fleet Report
Aries operates a fleet of nine double-hull products tankers and three container ships. Currently, nine of the Company's 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 0.1 to 1.75 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
On October 2, 2008, Aries announced it secured a period charter for the High Land, a 1992-built products tanker, and the High Rider, a 1991-built products tanker, with IPG for 12 months. The net rate for both vessels has been renegotiated to $14,822.50 per day for the High Land and $15,015 per day for the High Rider pending certain oil major approvals.
The following table details Aries' fleet deployment: Year Charterer/ Expiration Charterhire Vessels Size Built Subcharterer of Charter (net per day) ------- ---- ----- ------------ ---------- ------------- Products -------- Tankers ------- Altius 73,400 dwt 2004 Deiulemar/Enel Through $14,860 6/09 Fortius 73,400 dwt 2004 Deiulemar/Enel Through $14,860 8/09 Nordanvind 38,701 dwt 2001 Spot market -- -- Ostria 38,701 dwt 2000 Spot market -- -- High Land 41,450 dwt 1992 IPG Through $14,822.50 9/09 High Rider 41,502 dwt 1991 IPG Through $15,015 10/09 Stena Compass 72,750 dwt 2006 Stena Group Through Bareboat 8/10 charter rate of $18,232.50 + 30% of profits above $26,000 Stena 72,750 dwt 2006 Stena Group Through Bareboat Compassion 12/10 charter rate of $18,232.50 + 30% of profits above $26,000 Chinook 38,701 dwt 2001 Spot market -- -- Container --------- Vessels ------- Saronikos 2,917 TEU 1990 CMA CGM Through $20,400 Bridge 5/10 MSC Seine 2,917 TEU 1990 MSC Through $14,918.50 (formerly 9/09 CMA CGM Seine) Ocean Hope 1,799 TEU 1989 China Shipping Through $13,300 Container Lines 4/09 Summary of Selected Data ------------------ ------------------ Three Months Ended Three Months Ended ------------------ ------------------ December 31, 2008 December 31, 2007 ------------------ ------------------ ADJUSTED EBITDA RECONCILIATION (1) ------------------------------ (All amounts in US$000's unless otherwise stated) NET INCOME (40,543) (5,823) PLUS : NET INTEREST EXPENSE 4,516 3,633 PLUS : DEPRECIATION AND AMORTIZATION 6,533 6,345 PLUS : IMPAIRMENT CHARGE 30,075 -- PLUS : CHANGE IN FAIR VALUE OF DERIVATIVES 5,754 2,455 PLUS : STOCK BASED COMPENSATION 199 569 ADJUSTED EBITDA 6,534 7,179 FLEET DATA NUMBER OF VESSELS 12 12 AVERAGE NUMBER OF VESSELS ON PERIOD CHARTER 11 11 WEIGHTED AVERAGE AGE OF FLEET 10.8 9.8 OPERATING DAYS (2) 1,104 1,104 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (3) 17,809 19,604 TOTAL VESSEL OPERATING EXPENSES (4) 9,876 10,774 ------------------- ------------------- Twelve Months Ended Twelve Months Ended ------------------- ------------------- December 31, 2008 December 31, 2007 ------------------- ------------------- ADJUSTED EBITDA RECONCILIATION (1) ------------------------------ (All amounts in US$000's unless otherwise stated) NET INCOME (48,668) (1,861) PLUS : NET INTEREST EXPENSE 15,773 16,834 PLUS : DEPRECIATION AND AMORTIZATION 19,795 20,499 PLUS : IMPAIRMENT CHARGE 30,075 -- PLUS : CHANGE IN FAIR VALUE OF DERIVATIVES 6,515 4,060 PLUS : STOCK BASED COMPENSATION 1,084 1,232 ADJUSTED EBITDA 24,574 40,764 FLEET DATA NUMBER OF VESSELS 12 12 AVERAGE NUMBER OF VESSELS ON PERIOD CHARTER 10.3 11 WEIGHTED AVERAGE AGE OF FLEET 10.8 9.8 OPERATING DAYS (2) 4,392 4,380 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (3) 18,814 19,511 TOTAL VESSEL OPERATING EXPENSES (4) 10,163 7,759 (1) Aries considers Adjusted EBITDA to represent the aggregate of net income / (loss) from continuing operations, net interest expense, depreciation, amortization (excluding the effect of the amortization of the deferred revenue due to the assumption of charters associated with certain vessels acquisitions), change in the fair value of derivatives, stock-based compensation expense and impairment loss. The Company's management uses Adjusted EBITDA as a performance measure. The Company believes that Adjusted EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. Adjusted EBITDA is not an item recognized by GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a company's operating performance required by GAAP. The Company's definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. (2) Operating days are defined as the total days the vessels were in the Company's possession for the relevant period. (3) Adjusted to reflect that the Stena Compass and the Stena Compassion were each employed on a bareboat charter; an assumed TCE of $24,500 per day,reflecting assumed operating costs of $5,800 per day, has been included in respect of (a) the 92 operating days of the vessels during the three month period ended December 31, 2008, and 2007,respectively, and (b) the 366 and 365 operating days of the vessels during the twelve month period ended December 31, 2008, and 2007,respectively. (4) Total vessel operating expenses are defined as the sum of the vessel operating expenses, amortization of dry-docking and special survey expense and management fees adjusted to exclude the following operating days with respect to the Stena Compass and the Stena Compassion, which were employed on bareboat charters: (a) 92 operating days of the vessels during the twelve month period ended December 31, 2008,and 2007 (b) 366 and 365 operating days of the vessels during the twelve month period ended December 31, 2008, and 2007, respectively.
Conference Call Information
Aries will hold a conference call on Tuesday, March 24, 2009, at 10:00 a.m. Eastern Time to discuss results for the fourth quarter of 2008. To access the conference call, dial (888) 935-4575 for domestic callers, or (718) 354-1387 for international callers, and use the reservation number 3914367. Following the teleconference, a replay of the call may be accessed by dialing (866) 883-4489 for domestic callers, or (718) 354-1112 for international callers, and using the reservation number 3914367. The replay will be available through April 7, 2009. The conference call will also be webcast live on the Company's website, http://www.ariesmaritime.com. A replay of the audio webcast will be available following the call through April 7, 2009.
About Aries Maritime Transport Limited
Aries Maritime Transport Limited is an international shipping company that owns and operates products tankers and container vessels. The Company's products tanker fleet consists of five MR tankers and four Panamax tankers, all of which are double-hulled. The Company also owns a fleet of three container vessels that range in capacity from 1,799 to 2,917 TEU. Nine of the Company's 12 vessels are secured on period charters. Charters for two of the Company's products tanker vessels currently have profit-sharing components.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as ''forward-looking statements.'' We caution that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. All statements in this document that are not statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, such matters as future operating or financial results; statements about planned, pending or recent acquisitions, business strategy, future dividend payments and expected capital spending or operating expenses, including drydocking and insurance costs; statements about trends in the container vessel and products tanker shipping markets, including charter rates and factors affecting supply and demand; our ability to obtain additional financing; expectations regarding the availability of vessel acquisitions; and anticipated developments with respect to pending litigation. 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, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Aries Maritime Transport Limited believes 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, Aries Maritime Transport Limited cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements contained in this press release. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for oil and oil products, the effect of changes in OPEC's petroleum production levels, worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in Aries Maritime Transport Limited's voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists and other factors discussed in Aries Maritime Transport Limited's filings with the U.S. Securities and Exchange Commission from time to time. When used in this document, the words "anticipate," "estimate," "project," "forecast," "plan," "potential," "may," "should," and "expect" reflect forward-looking statements.
ARIES MARITIME TRANSPORT LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED DECEMBER 31, 2008 AND DECEMBER 31, 2007 (All amounts expressed in thousands of U.S. Dollars, except share and per share amounts) -------------------------------------------------------------------- (Unaudited) (Unaudited) Three month Three month period ended period ended December 31, 2008 December 31,2007 ------------------------------------ REVENUES: Revenue from voyages 19,157 19,761 EXPENSES: Commissions (495) (219) Voyage expenses (1,600) (868) Vessel operating expenses (7,619) (8,666) General & administrative expenses (1,985) (2,502) Depreciation (6,011) (5,988) Impairment Charge (30,075) -- Amortization of dry-docking and special survey expense (1,090) (744) Management fees (377) (502) ------------------------------------ (49,252) (19,489) ------------------------------------ Net operating (loss) / income (30,095) 272 OTHER INCOME/( EXPENSES), NET: Interest expense (4,533) (3,797) Interest income 17 164 Other expenses, net (178) (7) Change in fair value of derivatives (5,754) (2,455) ------------------------------------ Total other income/ (expenses), net (10,448) (6,095) ------------------------------------ Net loss from continuing operations (40,543) (5,823) ------------------------------------ Net loss from discontinued operations (1,480) (1,223) ------------------------------------ Net loss (42,023) (7,046) ------------------------------------ Loss per share: Basic and diluted Continuing operations ($ 1.41) ($ 0.21) ------------------------------------ Discontinued operations ($ 0.05) ($ 0.04) ------------------------------------ Total ($ 1.46) ($ 0.25) ------------------------------------ Weighted average number of shares: Basic and diluted 28,721,605 28,478,850 ------------------------------------ (All amounts in thousands of Three month Three month U.S. dollars) period ended period ended December 31, 2008 December 31, 2007 Net cash (used in) / provided by operating activities 1,381 2,888 Net cash provided by / (used in) investing activities (10) (90) Net cash (used in) financing activities (943) (3,206) ARIES MARITIME TRANSPORT LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE TWELVE MONTH PERIOD ENDED DECEMBER 31, 2008 AND DECEMBER 31, 2007 (All amounts expressed in thousands of U.S. Dollars, except share and per share amounts) -------------------------------------------------------------------- (Unaudited) (Unaudited) Twelve month Twelve month period ended period ended December 31, 2008 December 31, 2007 ------------------------------------ REVENUES: Revenue from voyages 81,331 81,080 EXPENSES: Commissions (1,407) (1,049) Voyage expenses (7,031) (3,119) Vessel operating expenses (31,338) (23,996) General & administrative expenses (7,878) (5,518) Depreciation (23,912) (23,883) Impairment Charge (30,075) -- Amortization of dry-docking and special survey expense (3,997) (2,626) Management fees (1,860) (1,700) ------------------------------------ (107,498) (61,891) ------------------------------------ Net operating (loss) / income (26,167) 19,189 OTHER INCOME/( EXPENSES), NET: Interest expense (16,021) (17,527) Interest income 248 693 Other expenses, net (213) (156) Change in fair value of derivatives (6,515) (4,060) ------------------------------------ Total other income/ (expenses), net (22,501) (21,050) ------------------------------------ Net loss from continuing operations (48,668) (1,861) ------------------------------------ Net income / (loss) from discontinued operations (including gain on sale of vessels $13,569 for December 31, 2008) 9,234 (6,872) ------------------------------------ ------------------------------------ Net loss (39,434) (8,733) ------------------------------------ Earnings/ (loss) per share: Basic and diluted Continuing operations ($ 1.70) ($ 0.07) ------------------------------------ Discontinued operations $ 0.32 ($ 0.24) ------------------------------------ ------------------------------------ Total ($ 1.38) ($ 0.31) ------------------------------------ Weighted average number of shares: Basic and diluted 28,634,186 28,478,850 ------------------------------------ Twelve month Twelve month (All amounts in thousands period ended period ended of U.S. dollars) December 31, 2008 December 31, 2007 Net cash provided by operating activities 2,901 17,581 Net cash provided by / (used in) investing activities 61,083 (2,008) Net cash (used in) financing activities (72,419) (14,741) ARIES MARITIME TRANSPORT LIMITED CONSOLIDATED BALANCE SHEETS (All amounts expressed in thousands of U.S. Dollars) -------------------------------------------------------------------- (Unaudited) (Audited) December 31, December 31, ------------------------------------ 2008 2007 ------------------------------------ ASSETS Current assets Cash and cash equivalents 4,009 12,444 Restricted cash 8,510 39 Trade receivables, net 2,533 2,219 Other receivables 2,289 1,033 Inventories 1,224 1,969 Prepaid expenses 967 1,681 Due from managing agent 160 814 Due from related parties 49 -- ------------------------------------ Total current assets 19,741 20,199 ------------------------------------ Vessels and other fixed assets, net 296,463 400,838 Deferred charges, net 1,573 2,906 Restricted cash -- 1,548 ------------------------------------ Total non-current assets 298,036 405,292 ------------------------------------ Total assets 317,777 425,491 ==================================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 223,710 284,800 Accounts payable, trade 3,444 8,423 Accrued liabilities 7,539 5,297 Deferred income 1,807 2,291 Derivative financial instruments 12,451 5,936 Deferred revenue 2,144 4,656 Due to related parties -- 594 ------------------------------------ Total current liabilities 251,095 311,997 ------------------------------------ Deferred revenue 772 6,375 ------------------------------------ Total liabilities 251,867 318,372 ------------------------------------ Stockholders' equity Preferred Stock, $0.01 par value, 30 million shares authorized, none issued. Common Stock, $0.01 par value, 100 million shares authorized, 29 million shares issued and outstanding at December 31, 2008 (2007: 28.6 million shares) 290 286 Additional paid-in capital 113,787 115,566 Deficit (48,167) (8,733) ------------------------------------ Total stockholders' equity 65,910 107,119 ------------------------------------ Total liabilities and stockholders' equity 317,777 425,491 ====================================