Three months
INCOME STATEMENT DATA ended
(dollars in thousands, except earnings per share data) June 30, 2007
-------------
Voyage revenue 1,814
Imputed deferred revenue (1) 316
-------------
Total revenue 2,130
Voyage expenses (89)
Direct vessel operating expenses (645)
Total general and administrative expenses (cash and
non-cash) * (1,069)
Depreciation (690)
Operating Loss (363)
Interest expense and finance costs (62)
Interest income 1,308
Net Income 883
Common earnings per share $ 0.21
Common and Subordinated earnings per share $ 0.14
Weighted average Common shares outstanding
(thousands) (2) 4,245
Weighted average Common and Subordinated shares
outstanding (thousands) (2) 6,267
*Includes non-cash amortization of compensation
related to restricted management stock 518
-------------
(1) Imputed deferred revenue – arises from the difference between the net
present value of the time charter which is incorporated in the purchase
contract of a vessel and the net present value of a market rate charter
for the same vessel and same charter period determined at the date of
delivery. We amortize this difference to revenue on a straight line
basis during the remaining life of the charter.
(2) Weighted average shares – for six month period calculated from
beginning of the year assuming issuance of Common and restricted stock
on April 30, 2007.
BALANCE SHEET DATA, at end of period As of
(dollars in thousands) June 30,
2007
------------
Cash 70,198
Current assets including cash 71,906
Total Assets 315,439
Current portion of imputed deferred revenue 4,710
Current portion of long-term debt 3,605
Total current liabilities 10,437
Total long-term imputed deferred revenue, including
current portion 13,334
Total long-term debt, including current option 81,275
Stockholders' equity 218,708
Common shares outstanding at end of period 12,394
Common and Subordinated shares outstanding at end of
period 14,457
------------
Three months
STATEMENT OF CASH FLOWS DATA ended
(dollars in thousands) June 30, 2007
------------
Net cash provided by operating activities 2,368
Net cash used in investing activities (229,707)
Net cash provided by financing activities 297,039
Cash Flow 69,700
------------
Three months
OTHER FINANCIAL DATA ended
(dollars in thousands) June 30, 2007
------------
EBITDA (1) 529
Weighted average long-term debt (2) 2,331
FLEET DATA
Total number of vessels at end of period 4
Average number of vessels for period (3) 0.21
Total calendar days for fleet (4) 75
Total voyage days for fleet (5) 71
Fleet utilization (6) 94.7%
AVERAGE DAILY RESULTS
(NOT in thousands)
Time Charter equivalent, TCE (7) 24,296
Direct vessel operating expenses per vessel (8) 8,600
General and administrative, cash cost (9) 7,347
Total vessel operating expenses (10) 15,947
EBITDA (11) 7,053
------------
Net voyage revenue reconciliation
Total revenue 2,130
- Imputed deferred revenue (316)
- Voyage Expenses (89)
------------
Net voyage revenue 1,725
EBITDA reconciliation
Net Income 883
+ Net interest expense and other income (1,246)
+ Depreciation and amortization,includes
amortization of compensation of restricted
management stock 1,208
- Imputed deferred revenue (316)
------------
EBITDA 529
(1) EBITDA - represents net income plus net interest expense and other
income, plus depreciation and amortization minus imputed deferred
revenue. EBITDA is used by analysts in the shipping industry as a
common performance measure to compare results across peers. Management
of the Company uses EBITDA as a performance measure in its internal
financial statements and it is presented for review at our board
meetings. EBITDA is not an item recognized by GAAP. The definition
of EBITDA used here may not be comparable to that used by other
companies.
(2) Weighted average long term debt - is the measurement of debt as of
the close of each business day for the period divided by the number of
calendar days in that period.
(3) Average number of vessels - is the number of vessels that constituted
our fleet for the relevant period as measured by the sum of the number
of whole days each vessel was a part of our fleet during the period
divided by the number of calendar days in that period.
(4) Ownership days - are the total whole calendar days that a vessel was
in our possession for the relevant period including off hire days.
(5) Voyage days - are the total whole days a vessel was in our possession
for the relevant period net of off hire days.
(6) Fleet utilization - is the percentage of time that our vessels were
available for revenue generating operations and is determined by
dividing voyage days by ownership days for the relevant period.
(7) Time charter equivalent, or TCE - is a measure of the average daily
revenue performance of a vessel on a per voyage basis. We believe
that our method of calculating TCE is consistent with industry
standards and is determined by dividing net voyage revenue (see
reconciliation of net voyage revenue above) by voyage days.
(8) Direct vessel operating expenses - is calculated by dividing vessel
operating expenses which includes crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance and repairs
and technical manager administrative costs by calendar days for the
relevant period.
(9) General and administrative costs - is calculated by dividing general
and administrative costs net of compensation of non-cash amortization
of restricted management stock by the calendar days for the relevant
period.
(10) Total vessel operating expenses - is the sum of direct vessel
operating expenses and general and administrative costs described
above in notes 8 and 9.
(11) Daily EBITDA - is total EBITDA divided by calendar days.
Fleet Profile and Employment
As of June 30, 2007, OceanFreight's fleet consisted of 4 vessels: 3 Panamax
and 1 Capesize bulker. Subsequent to June 30, 2007 the Company took
delivery of an additional Panamax. The Company expects to take delivery of
three additional vessels (see the table below.) The Company's full fleet
of eight vessels will have an average age of 12.0 years as of June 30, 2007
calculated on a dwt weighted average and a total carrying capacity of
approximately 667,063 dwt.
Vessel Vessel Acquired (1) Year DWT LWT
Type Build
------ ------- ------------ ----- ------ ------
Trenton Panamax June 5, 2007 1995 75,264 11,620
Austin Panamax June 7, 2007 1995 75,229 11,620
Pierre Panamax June 7, 2007 1996 70,316 9,106
Juneau Capesize June 30, 2007 1990 149,495 18,468
Lansing (2) Panamax July 5, 2007 1996 73,040 10,788
Helena Panamax July 2007 (3) 1999 73,744 9,502
Topeka Panamax August 2007 (3) 2000 74,710 12,627
To Be Named Panamax November 2007 (3) 1995 75,265 11,585
(1) First whole day of ownership
(2) Acquired subsequent to June 30, 2007
(3) Projected
During the three month period ended June 30, 2007, the Company secured a
two year time charter for its only unchartered vessel at the time of the
IPO, the M/V "Juneau," a 1990 built Capesize drybulk carrier with a
carrying capacity of approximately 149,500 dwt. The time charter will
commence in August 2007 after the completion of the vessels drydocking at a
rate of $46,800 per day for two years which is $4,050 per day above the
rate of $42,750 assumed by the Company at the time of its IPO, or a total
of approximately $2.9 million for the life of the charter.
All of the Company's vessels are currently operating or have been
contracted to operate upon delivery under long term period charters with
reputable charterers.
For the remainder of 2007, 100% of the Company's net ownership days are
covered by time charters, with approximately 94% for 2008 and 73% for 2009.
Vessel Vessel Begin Expiration Time Charter
Type Charter (1) Date (2) Rate (3)
------- ------- ------------ ---------------- ---------
Trenton Panamax June 6, 2007 April 2, 2010 (4) 24,700
Austin Panamax June 8, 2007 April 4, 2010 (4) 24,700
Pierre Panamax June 8, 2007 June 3, 2010 (4) 22,425
Juneau Capesize August 2007 (5) August-09 46,800
Lansing (6) Panamax July 6, 2007 May-09 23,100
Helena (7) Panamax July 2007 (8) July-08 28,125
Topeka (7) Panamax August 2007 (8) October-10 21,656
To Be Named (7) Panamax November 2007 (8) November-09 28,000
(1) First whole day of charter
(2) Approximate expiration of charter
(3) Net of commissions and imputed deferred revenue
(4) Date used for calculation of imputed deferred revenue
(5) The vessel is currently undergoing a special survey estimated to cost
$2.5 million which it is expected to conclude August 2007 after which
it will commence its charter
(6) Acquired subsequent to June 30, 2007
(7) Not yet acquired
(8) Projected
Dividend
The Company's policy is to pay a quarterly dividend of $0.5125 per share to
holders of its common shares subject to declaration at the discretion of
the Board of Directors.
The Board of Directors of OceanFreight has declared a dividend of $0.39 per
share, payable on or about August 15, 2007 to all shareholders of record as
of August 6, 2007. This partial dividend is in line with the Company's
expectations stated at the time if its IPO for the 62 day period from the
closing of the IPO on April 30, 2007 through June 30, 2007.
Conference Call details:
A conference call has been scheduled with management for July 26, 2007 to
discuss the Company's results for the second quarter. Participants should
dial into the call 10 minutes before the scheduled time using the following
numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free
Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please
quote "OceanFreight"
In case of any problems with the above numbers, please dial 1 866 223 0615
(US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452
586 513 (Standard International Dial In). Quote "OceanFreight"
A telephonic replay of the conference call will be available until August
2, 2007 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK
Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In).
Access Code: 7445162#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference
call, available through OceanFreight's website (www.oceanfreightinc.com).
Participants for the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About OceanFreight Inc.
OceanFreight Inc. was incorporated on September 11, 2006 under the laws of
the Republic of the Marshall Islands. The Company was formed to acquire an
initial fleet of seven secondhand drybulk carriers and has subsequently
entered into an agreement to acquire an eighth secondhand drybulk carrier.
The Company maintains its headquarters in Athens, Greece, and will also
maintain an office in New York.
On April 30, 2007, OceanFreight closed its initial public offering of
12,394,079 common shares, including common shares issued pursuant to the
underwriters' over-allotment option and restricted shares issued to
management at a price of $19.00 per share. The Company's total outstanding
equity also includes 2,063,158 subordinated shares.
OceanFreight's common shares trade on the NASDAQ Global Market under the
symbol "OCNF."
Visit our website at www.oceanfreightinc.com
OCEANFREIGHT INC.
CONSOLIDATED BALANCE SHEET
June 30, 2007
(Expressed in Thousands of US Dollars)
ASSETS
CURRENT ASSETS:
Cash and cash equivalent $ 70,198
Receivables 365
Inventories 823
Prepayments and other 520
-----------
Total current assets 71,906
FIXED ASSETS:
Advances for vessels purchase 56,415
Vessels' net book value 186,252
===========
Total fixed assets 242,667
===========
NON-CURRENT ASSETS 866
===========
Total Assets $ 315,439
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities 1,690
Unearned revenue 432
Short-term imputed deferred revenue 4,710
Current portion of long-term debt 3,605
-----------
Total current liabilities 10,437
Long-term imputed deferred revenue 8,624
Long-term debt, net of current portion 77,670
-----------
Total non-current liabilities 86,294
===========
Total liabilities 96,731
-----------
COMMITMENTS AND CONTINGENCIES
-----------
STOCKHOLDERS' EQUITY 218,708
-----------
===========
Total liabilities and stockholders' equity $ 315,439
===========
OCEANFREIGHT INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in Thousands of US Dollars - except per share data)
Three Months
--------------
Ended June 30,
--------------
2007
--------------
REVENUE
Voyage revenue $ 1,814
Imputed deferred revenue 316
==============
Total revenue 2,130
EXPENSES:
Voyage expenses (89)
Vessel operating expenses (645)
General and administrative expenses (1,069)
Depreciation (690)
--------------
Total expenses (2,493)
==============
Operating income/ (loss) (363)
--------------
OTHER INCOME (EXPENSES):
Interest expense and finance costs (62)
Interest income 1,308
--------------
Total other income (expenses), net 1,246
--------------
==============
Net income/ (loss) $ 883
==============
==============
Earnings per share, common and subordinated $ 0.14
==============
==============
Weighted number of shares, common and subordinated 6,267,120
==============
OCEANFREIGHT INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2007
(Expressed in Thousands of US Dollars)
Cash Flows from Operating Activities:
Net income $ 808
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 690
Amortization of loan fees 1
Amortization of imputed deferred revenue (316)
Compensation of management restricted stock 518
Executive management services and rent 97
(Increase) decrease in:
Receivables (365)
Inventories (823)
Prepaid insurance and other (79)
Increase (decrease) in:
Accounts payable 150
Accrued liabilities 1,372
Unearned revenue 315
--------------
Net Cash provided by Operating Activities 2,368
--------------
Cash Flows from Investing Activities
Advances for vessels acquisitions (56,415)
Vessels acquisitions and/or improvements (173,292)
==============
Net cash used in Investing Activities (229,707)
--------------
Cash Flows from Financing Activities
Proceeds from public offering, net of related issuance
costs 216,796
Proceeds from long-term debt 81,275
Financing costs (1,032)
==============
Net cash provided by Financing Activities 297,039
--------------
Net increase in cash and cash equivalents 69,700
Cash and cash equivalents at beginning of period 499
==============
Cash and cash equivalents at end of period $ 70,198
==============
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future events
or performance, and underlying assumptions and other statements, which are
other than statements of historical facts.
The forward-looking statements in this 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 OceanFreight Inc. 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, OceanFreight
Inc. cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections.
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 to us or delay in taking delivery of one or
more vessels, default by one or more charterers of our vessels, changes in
demand that may affect attitudes of time charterers, scheduled and
unscheduled drydocking, changes in OceanFreight Inc.'s operating expenses,
length and number of off-hire periods and dependence on third-party
managers, drydocking 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.
Risks and uncertainties are further discussed in documents filed by
OceanFreight Inc. with the U.S. Securities and Exchange Commission.
Contact Information: CONTACT: James Christodoulou Chief Financial Officer OceanFreight Inc. (212) 488-5052 James@OceanFreightInc.com Investor Relations / Financial Media: Capital Link - New York