ATHENS, Greece, June 2, 2009 (GLOBE NEWSWIRE) -- Aries Maritime Transport Limited (Nasdaq:RAMS) today reported its unaudited financial results for the three months ended March 31, 2009. The following financial review discusses the results for the three months ended March 31, 2009, compared with the results for the three months ended March 31, 2008.(1)
First Quarter Results
Total revenues from continuing operations of $16.8 million were recorded for the three months ended March 31, 2009, compared to total revenues of $20 million recorded for the three months ended March 31, 2008. For the three month periods ended March 31, 2009 and March 31, 2008, the Company reported revenues of $13.9 million and $17.5 million, respectively, excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as direct expenses including commissions and voyage expenses. The decrease in revenues is primarily attributable to 90 out-of-service days related to the Nordanvind as well as lower charter rates achieved for the MSC Seine and the Chinook during the three months ended March 31, 2009, compared to the three months ended March 31, 2008. Vessel operating days for the three months ended March 31, 2009 were 1,080, compared to operating days of 1,092 for the three months ended March 31, 2008. 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 March 31, 2009, were 976 and total revenue days for the three months ended March 31, 2008, were 1,060. 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 $4.2 million or $0.15 basic and diluted loss per share, for the three months ended March 31, 2009, compared to a net loss of $5.1 million, or $0.18 basic and diluted loss per share, recorded for the three months ended March 31, 2008. The results for the first quarter of 2009 include a $0.1 million non-cash loss from the change in the fair value of derivatives. The results for the same period of 2008 include a $3.6 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 March 31, 2009, was $4.2 million, or $0.15 basic and diluted loss per share, compared to a net loss of $6.9 million, or $0.24 basic and diluted loss per share, recorded for the three months ended March 31, 2008.
Adjusted EBITDA for the three months ended March 31, 2009, was $4.8 million compared to $8.1 million for the three months ended March 31, 2008. (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, "Our results for the first quarter reflect previously announced out-of-service time for the Nordanvind and reduced charter rates as anticipated for certain vessels, partially offset by lower general and administrative expenses. During this challenging global economic environment, management remains committed to strengthening the Company's ship operations as we continue to implement our turnaround plan. By taking proactive measures aimed at reducing costs and increasing the utilization of our fleet, while exploring strategic growth opportunities, we intend to enhance our future performance and drive shareholder value over the long term."
Fleet Report
Aries operates a fleet of nine double-hull products tankers and three container ships. Currently, eight of the Company's 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 1 month to 1.6 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
On April 14, 2009, the Ocean Hope was redelivered to the Company following the completion of the vessel's scheduled period charter. The Ocean Hope was subsequently laid up with reduced crew at substantially reduced operating expenses as management continues to evaluate options related to the vessel.
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 2004 Deiulemar/ Through $14,860
dwt Enel 6/09
Fortius 73,400 2004 Deiulemar/ Through $14,860
dwt Enel 8/09
Nordanvind 38,701 2001 Spot -- --
dwt market
Ostria 38,701 2000 Spot -- --
dwt market
High Land 41,450 1992 IPG Through $14,822.50
dwt 9/09
High Rider 41,502 1991 IPG Through $15,015
dwt 10/09
Stena Compass 72,750 2006 Stena Through Bareboat
dwt Group 8/10 charter rate
of $18,232.50
+ 30% of
profits above
$26,000
Stena 72,750 2006 Stena Through Bareboat
Compassion dwt Group 12/10 charter rate
of $18,232.50
+ 30% of
profits above
$26,000
Chinook 38,701 2001 Spot -- --
dwt market
Container
---------
Vessels
-------
Saronikos 2,917 1990 CMA CGM Through $20,400
Bridge TEU 5/10
MSC Seine 2,917 1990 MSC Through $14,725
TEU 9/09
Ocean Hope 1,799 1989 -- -- --
TEU
Summary of Selected Data
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
ADJUSTED EBITDA
RECONCILIATION (1)
-------------------
(All amounts in US$000's
unless otherwise stated)
NET LOSS (4,213) (5,093)
PLUS : NET INTEREST EXPENSE 3,523 3,599
PLUS : DEPRECIATION AND
AMORTIZATION 5,192 5,506
PLUS: CHANGE IN FAIR VALUE OF
DERIVATIVES 106 3,607
PLUS: STOCK BASED
COMPENSATION 146 466
ADJUSTED EBITDA 4,754 8,085
FLEET DATA
NUMBER OF VESSELS 12 12
AVERAGE NUMBER OF VESSELS ON
PERIOD CHARTER 9 11
WEIGHTED AVERAGE AGE OF FLEET 11 10
OPERATING DAYS (2) 1,080 1,092
REVENUE DAYS (3) 976 1,060
AVERAGE DAILY RESULTS
TIME CHARTER EQUIVALENT
RATE (4) 15,829 18,637
TOTAL VESSEL OPERATING
EXPENSES (5) 9,907 9,438
(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/loss, operating income/loss 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) Revenue days are defined as the total days the vessels were not
off hire or out of service.
(4) Adjusted to reflect that the Stena Compass and the Stena
Compassion were each employed on a bareboat charter as follows:
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 90 operating days of the vessels during the
three month period ended March 31, 2009, and
(b) the 91 operating days of the vessels during the
three month period ended March 31, 2008.
(5) Total vessel operating expenses are defined as the sum of the
vessel operating expenses, amortization of drydocking 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) 90 operating days of the vessels during the three
month period ended March 31, 2009, and
(b) 91 operating days of the vessels during the three
month period ended March 31, 2008.
Conference Call Information
Aries will hold a conference call on Tuesday, June 2, 2009, at 10:00 a.m. Eastern Time to discuss results for the first quarter of 2009. To access the conference call, dial (888) 935-4577 for domestic callers, or (212) 444-0413 for international callers, and use the reservation number 1914867. 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 1914867. The replay will be available through June 16, 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 June 16, 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. Eight 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 MARCH 31, 2009 AND MARCH 31, 2008
(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
March 31, 2009 March 31, 2008
-----------------------------------
OPERATING REVENUES 16,751 19,972
EXPENSES:
Commissions (463) (268)
Voyage expenses (1,883) (1,004)
Vessel operating expenses (7,462) (7,300)
General & administrative expenses (1,368) (2,044)
Depreciation (4,687) (5,945)
Amortization of dry-docking and
special survey expense (1,050) (753)
Management fees (404) (536)
-----------------------------------
(17,317) (17,850)
-----------------------------------
Net operating (loss)/income (566) 2,122
OTHER INCOME/(EXPENSES), NET:
Interest & finance expense, net (3,526) (3,705)
Interest income 3 106
Other expenses, net (18) (9)
Change in fair value of
derivatives (106) (3,607)
-----------------------------------
Total other expenses, net (3,647) (7,215)
-----------------------------------
Net loss from continuing
operations (4,213) (5,093)
-----------------------------------
Net loss from discontinued
operations (33) (1,770)
-----------------------------------
Net loss (4,246) (6,863)
-----------------------------------
Loss per share:
Basic and diluted
Continuing operations ($0.15) ($0.18)
-----------------------------------
Discontinued operations -- ($0.06)
-----------------------------------
Total ($0.15) ($0.24)
-----------------------------------
Weighted average number of
shares:
Basic and diluted 28,721,877 28,616,877
-----------------------------------
Three month Three month
(All amounts in thousands period ended period ended
of U.S. dollars) March 31, 2009 March 31, 2008
Net cash (used in)/provided
by operating activities (1,505) 877
Net cash used in investing
activities (42) --
Net cash (used in)/provided
by financing activities 820 (7)
ARIES MARITIME TRANSPORT LIMITED
CONSOLIDATED BALANCE SHEETS
(All amounts expressed in thousands of U.S. Dollars except share
amounts)
---------------------------------------------------------------------
(Unaudited) (Audited)
March 31, December 31,
-----------------------------
2009 2008
-----------------------------
ASSETS
Current assets
Cash and cash equivalents 3,282 4,009
Restricted cash 7,690 8,510
Trade receivables, net 2,084 2,533
Other receivables 1,701 2,289
Inventories 1,394 1,224
Prepaid expenses 685 967
Due from managing agent 399 160
Due from related parties 37 49
-----------------------------
Total current assets 17,272 19,741
-----------------------------
Vessels and other fixed assets, net 290,768 296,463
Deferred charges, net 1,386 1,573
-----------------------------
Total non-current assets 292,154 298,036
-----------------------------
Total assets 309,426 317,777
=============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt 223,710 223,710
Accounts payable, trade 3,706 3,601
Accrued liabilities 5,116 7,776
Deferred income 537 1,807
Derivative financial instruments 12,557 12,451
Deferred charter revenue 2,102 2,144
Due to related parties 13 --
-----------------------------
Total current liabilities 247,741 251,489
-----------------------------
Deferred charter revenue 269 772
-----------------------------
Total liabilities 248,010 252,261
-----------------------------
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 March 31, 2009
(2008: 29 million shares) 290 290
Additional paid-in capital 113,933 113,787
Deficit (52,807) (48,561)
-----------------------------
Total stockholders' equity 61,416 65,516
-----------------------------
Total liabilities and
stockholders' equity 309,426 317,777
=============================
(1) 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.