ATHENS, Greece, Aug. 27, 2009 (GLOBE NEWSWIRE) -- Aries Maritime Transport Limited (Nasdaq:RAMS) today reported its interim financial results for the three and six months ended June 30, 2009. The following financial review discusses the results for the three and six months ended June 30, 2009, compared with the results for the three and six months ended June 30, 2008. On June 29, 2009, Aries completed the sale of the Ocean Hope, a 1989-built container vessel, to an unrelated third party for a net price of $2.3 million. This transaction resulted in a loss on sale totalling $5.6 million, which was recorded in the second quarter of 2009. Proceeds from the sale of the Ocean Hope were used to repay debt under the Company's fully revolving credit facility. The results for this vessel are reported as discontinued operations.(1)
(1) In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius. The sale of these three vessels resulted in a gain on sale of $13.6 million which was recorded in the second quarter of 2008. The results for these vessels and related gain on sale are reported as discontinued operations.
Second Quarter Results
Total revenues from continuing operations of $15.4 million were recorded for the three months ended June 30, 2009, compared to total revenues of $18.0 million recorded for the three months ended June 30, 2008. For the three month periods ended June 30, 2009 and June 30, 2008, the Company reported revenues of $13.0 million and $15.4 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 lower charter rates achieved for the MR tankers, as well as out-of-service days related to the Nordanvind. The decrease was partially offset by an increase in the utilization for the Saronikos Bridge. Vessel operating days for the three months ended June 30, 2009 and 2008 were 1,001. 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 June 30, 2009, were 883 and total revenue days for the three months ended June 30, 2008, were 947. 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 $2.6 million or $0.10 basic and diluted loss per share, for the three months ended June 30, 2009, compared to net income of $1.8 million, or $0.06 basic and diluted income per share, recorded for the three months ended June 30, 2008. The results for the second quarter of 2009 include a $1.2 million non-cash gain from the change in the fair value of derivatives. The results for the same period of 2008 include a $3.6 million non-cash gain from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the three months ended June 30, 2009, was $8.2 million, or $0.29 basic and diluted loss per share, compared to net income of $13.2 million, or $0.46 basic and diluted income per share, recorded for the three months ended June 30, 2008.
Adjusted EBITDA for the three months ended June 30, 2009, was $4.5 million compared to $7.4 million for the three months ended June 30, 2008. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net loss/ income.)
Jeff Parry, Chief Executive Officer, commented, "Our results for the second 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 continues to take proactive measures to improve the Company's financial position and maximize shareholder value. Specifically, we sold the Ocean Hope, the oldest vessel in our fleet, for a net price of $2.3 million. We also entered into a non-binding letter of intent with Grandunion, Inc., which contemplates, among other things, the acquisition of three Capesize drybulk carriers with an approximate net asset value of $36.0 million in exchange for 15,977,778 newly issued shares of the Company, and a change of control of the Company's Board of Directors. As we maintain our focus on negotiating the definitive agreements with Grandunion, management remains committed to strengthening Aries' ship operations and enhancing the Company's future performance."
Six-Month Results
Total revenues of $30.9 million from continuing operations were recorded for the six months ended June 30, 2009, compared to total revenue of $36.7 million recorded for the six months ended June 30, 2008. For the six month periods ended June 30, 2009 and June 30, 2008, the Company reported revenues of $25.8 million and $31.7 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 lower charter rates achieved for the fleet as well as out-of-service days related to the Nordanvind. The decrease was partially offset by an increase in the utilization for the Saronikos Bridge. Vessel operating days for the six months ended June 30, 2009 were 1,991 and for the six months ended June 30, 2008 were 2,002. 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 six months ended June 30, 2009, were 1,771 and total revenue days for the six months ended June 30, 2008, were 1,916. 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 $7.0 million or $0.25 basic and diluted loss per share, for the six months ended June 30, 2009, compared to a net loss of $3.3 million, or $0.12 basic and diluted loss per share, recorded for the six months ended June 30, 2008. The results for the second quarter of 2009 include a $1.1 million non-cash gain from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the six months ended June 30, 2009, was $12.5 million, or $0.45 basic and diluted loss per share, compared to net income of $6.3 million, or $0.22 basic and diluted income per share, recorded for the six months ended June 30, 2008.
Adjusted EBITDA for the six months ended June 30, 2009, was $8.7 million compared to $14.9 million for the six months ended June 30, 2008. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net loss.)
Fleet Report
Aries operates a fleet of nine double-hull products tankers and two container ships. Currently, four of the Company's 11 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from several weeks to 1.3 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
In June 2009, Aries completed the sale of the Ocean Hope, a 1989-built container vessel, to an unrelated third party for a net price of $2.3 million. This transaction resulted in a loss on sale totalling $5.6 million recorded in the second quarter of 2009. Proceeds from the sale of the Ocean Hope were used to repay debt under the Company's fully revolving credit facility.
The High Land and High Rider entered the spot market following early redelivery of these vessels on July 4, 2009 and July 7, 2009, respectively, based on the terms of their charter agreements.
The period charters for the Altius and Fortius expired in June 2009 and August 2009, respectively.
The Company received notice of redelivery for the MSC Seine in accordance with the terms of its charter. The vessel is expected to be redelivered in September 2009.
The following table details Aries' fleet deployment as of August 27, 2009:
Year Charterer/ Expiration Charterhire
---- ---------- ---------- -----------
Vessels Size Built Subcharterer of Charter (net per day)
------- ---- ----- ------------ ----------- -------------
Products
--------
Tankers
-------
Altius 73,400 dwt 2004 Spot market -- --
Fortius 73,400 dwt 2004 Spot market -- --
Nordanvind 38,701 dwt 2001 Spot market -- --
Ostria 38,701 dwt 2000 Spot market -- --
High Land 41,450 dwt 1992 Spot market -- --
High Rider 41,502 dwt 1991 Spot market -- --
Stena 72,750 dwt 2006 Stena Group Through Bareboat
Compass 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 6/10
MSC Seine 2,917 TEU 1990 MSC Through $14,725
9/09
Summary of Selected Data
Three Months Three Months
Ended Ended
June 30, 2009 June 30, 2008
ADJUSTED EBITDA RECONCILIATION (1)
----------------------------------
(All amounts in US$000's unless otherwise
stated)
NET (LOSS)/ INCOME (2,639) 1,811
PLUS: NET INTEREST EXPENSE 3,483 3,929
PLUS: DEPRECIATION AND AMORTIZATION 4,799 5,253
PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES (1,244) (3,639)
PLUS: STOCK BASED COMPENSATION 148 29
ADJUSTED EBITDA 4,547 7,383
FLEET DATA
NUMBER OF VESSELS 11 11
NUMBER OF VESSELS ON PERIOD CHARTER 8 9
WEIGHTED AVERAGE AGE OF FLEET 10.5 9.5
OPERATING DAYS(2) 1,001 1,001
REVENUE DAYS(3) 883 947
AVERAGE DAILY RESULTS
TIME CHARTER EQUIVALENT RATE(4) 16,603 18,633
TOTAL VESSEL OPERATING EXPENSES(5) 9,589 8,723
Six Months Six Months
Ended Ended
June 30, 2009 June 30, 2008
ADJUSTED EBITDA RECONCILIATION(1)
---------------------------------
(All amounts in US$000's unless otherwise
stated)
NET LOSS (7,033) (3,309)
PLUS: NET INTEREST EXPENSE 6,987 7,499
PLUS: DEPRECIATION AND AMORTIZATION 9,628 10,210
PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES (1,138) (32)
PLUS: STOCK BASED COMPENSATION 294 494
ADJUSTED EBITDA 8,738 14,862
FLEET DATA
NUMBER OF VESSELS 11 11
NUMBER OF VESSELS ON PERIOD CHARTER 8 9
WEIGHTED AVERAGE AGE OF FLEET 10.5 9.5
OPERATING DAYS(2) 1,991 2,002
REVENUE DAYS(3) 1,771 1,916
AVERAGE DAILY RESULTS
TIME CHARTER EQUIVALENT RATE(4) 16,341 18,901
TOTAL VESSEL OPERATING EXPENSES(5) 9,922 9,216
(1) Aries considers Adjusted EBITDA to represent the aggregate of net
income / (loss) from continuing operations, net of 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; 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 91 operating days of the vessels during the three month
period ended June 30, 2009, and 2008, respectively.
(b) the 181 and 182 operating days of the vessels during the six
month period ended June 30, 2009 and 2008, respectively.
(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) the 91 operating days of the vessels during the three month
period ended June 30, 2009, and 2008, respectively.
(b) the 181 and 182 operating days of the vessels during the six
month period ended June 30, 2009 and 2008, respectively.
Conference Call Information
Aries will hold a conference call on Thursday, August 27, 2009, at 10:00 a.m. Eastern Time to discuss results for the second quarter of 2009. To access the conference call, dial (888) 935-4577 for domestic callers, or (718) 354-1388 for international callers, and use the reservation number 6056482. Following the teleconference, a replay of the call may be accessed by dialing (866) 932-5017 for domestic callers, or (347) 366-9565 for international callers, and using the reservation number 6056482. The replay will be available through September 10, 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 September 10, 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 two container vessels in capacity of 2,917 TEU each. Four of the Company's 11 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, inability to complete definitive agreements with Grandunion Inc., 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
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2009 AND JUNE 30, 2008
(All amounts expressed in thousands of U.S. Dollars, except
share and per share amounts)
---------------------------------------------------------------------
(Unaudited) (Unaudited)
Three Three
month month
period period
ended ended
June 30, June 30,
2009 2008
----------------------
OPERATING REVENUES 15,438 18,029
EXPENSES:
Commissions (407) (174)
Voyage expenses (1,426) (1,265)
Vessel operating expenses (6,611) (5,734)
General & administrative expenses (1,766) (1,847)
Depreciation (4,389) (5,450)
Amortization of dry-docking and special survey
expense (950) (972)
Management fees (294) (438)
----------------------
(15,843) (15,880)
----------------------
Net operating (loss) / income (405) 2,149
OTHER INCOME/(EXPENSES), NET:
Interest & finance expense, net (3,487) (4,003)
Interest income 4 74
Other income/ (expenses), net 5 (48)
Change in fair value of derivatives 1,244 3,639
----------------------
Total other expenses, net (2,234) (338)
----------------------
Net (loss)/ income from continuing operations (2,639) 1,811
----------------------
Net (loss)/ income from discontinued operations
(includes $5,584 loss on disposal of vessel in
2009, and $13,569 gain on disposal of vessels
in 2008) (5,578) 11,341
----------------------
Net (loss)/ income (8,217) 13,152
----------------------
(Loss)/ income per share:
Basic and diluted
Continuing operations ($0.10) $0.06
----------------------
Discontinued operations ($0.19) $0.40
----------------------
Total ($0.29) $ 0.46
----------------------
Weighted average number of shares:
Basic and diluted 28,721,877 28,616,877
----------------------
Three Three
month month
period period
ended ended
June 30, June 30,
2009 2008
(All amounts in thousands of U.S. dollars)
Net cash provided by operating activities (217) 2,320
Net cash provided by investing activities 2,258 59,554
Net cash used in financing activities (2,200) (70,995)
ARIES MARITIME TRANSPORT LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009 AND JUNE 30, 2008
(All amounts expressed in thousands of U.S. Dollars, except share
and per share amounts)
---------------------------------------------------------------------
(Unaudited) (Unaudited)
Six month Six month
period period
ended ended
June 30, June 30,
2009 2008
----------------------
OPERATING REVENUES 30,941 36,734
EXPENSES:
Commissions (808) (365)
Voyage expenses (3,292) (2,266)
Vessel operating expenses (13,513) (12,487)
General & administrative expenses (3,122) (3,889)
Depreciation (8,729) (10,900)
Amortization of dry-docking and special survey
expense (1,985) (1,671)
Management fees (666) (938)
----------------------
(32,115) (32,516)
----------------------
Net operating (loss) / income (1,174) 4,218
OTHER INCOME/( EXPENSES), NET:
Interest & finance expense, net (6,994) (7,676)
Interest income 7 177
Other expenses, net (10) (60)
Change in fair value of derivatives 1,138 32
----------------------
Total other expenses, net (5,859) (7,527)
----------------------
Net loss from continuing operations (7,033) (3,309)
----------------------
Net (loss)/ income from discontinued
operations (includes $5,584 loss on disposal
of vessel in 2009, and $13,569 gain on
disposal of vessels in 2008) (5,430) 9,598
----------------------
Net (loss)/ income (12,463) 6,289
----------------------
(Loss)/ income per share:
Basic and diluted
Continuing operations ($0.24) ($0.12)
----------------------
Discontinued operations ($0.19) $0.34
----------------------
Total ($0.43) $0.22
----------------------
Weighted average number of shares:
Basic and diluted 28,721,877 28,616,877
----------------------
Six month Six month
period period
ended ended
June 30, June 30,
2009 2008
(All amounts in thousands of U.S. dollars)
Net cash (used in) / provided by operating
activities (1,722) 3,198
Net cash provided by investing activities 2,216 59,554
Net cash used in financing activities (1,380) (71,003)
ARIES MARITIME TRANSPORT LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts expressed in thousands of U.S. Dollars except
share amounts)
----------------------------------------------------------------------
(Unaudited)
As of (Audited)
June 30, Dec. 31,
----------------------
2009 2008
----------------------
ASSETS
Current assets
Cash and cash equivalents 3,123 4,009
Restricted cash 10,209 8,510
Trade receivables, net 2,069 2,533
Other receivables 2,406 2,289
Inventories 1,215 1,224
Prepaid expenses 633 967
Due from managing agent 1,131 160
Due from related parties -- 49
----------------------
Total current assets 20,786 19,741
----------------------
Vessels and other fixed assets, net 277,616 296,463
Deferred charges, net 1,196 1,573
----------------------
Total non-current assets 278,812 298,036
----------------------
Total assets 299,598 317,777
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt 223,710 223,710
Accounts payable, trade 4,080 3,601
Accrued liabilities 5,037 7,776
Deferred income 257 1,807
Derivative financial instruments 11,313 12,451
Deferred charter revenue 1,831 2,144
Due to related parties 23 --
----------------------
Total current liabilities 246,251 251,489
----------------------
Deferred charter revenue -- 772
----------------------
Total liabilities 246,251 252,261
----------------------
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 June 30, 2009
(2008: 29 million shares) 290 290
Additional paid-in capital 114,081 113,787
Deficit (61,024) (48,561)
----------------------
Total stockholders' equity 53,347 65,516
----------------------
Total liabilities and stockholders' equity 299,598 317,777
======================