ATHENS, Greece, March 14, 2022 (GLOBE NEWSWIRE) -- TOP Ships Inc. (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today its unaudited financial results for the year ended December 31, 2021.
For the year ended December 31, 2021, the Company reported:
- Total revenues of $56.4 million
- Net Income of $8.6 million
- Earnings per share of $0.14
- Adjusted EBITDA of $35.2 million*
- Total Assets of $330.8 million
Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:
"We are very happy to report record net income for the year ended December 31, 2021, which is the highest reported net income since 2008. Furthermore, we announce the conclusion of our newbuilding program following which, as of today, our fixed revenue backlog is about $361 million and our charter coverage is as per below table:"
| Year | Time Charter Coverage | ||
| 2022 | 100 | % | |
| 2023 | 100 | % | |
| 2024 | 76 | % | |
| 2025 | 17 | % | |
| 2026+ | 10 | % | |
Recent Developments
On February 28 we concluded the previously announced sale of the M/T Eco Los Angeles to an unaffiliated party and the related secured financing for the vessel was prepaid in full. The net proceeds after senior debt repayment were used to repay $9 million of funds drawn down under the unsecured credit facility entered into in January 2022 with Central Mare Inc, a company affiliated with our President, CEO and Director Evangelos J. Pistiolis, which is now terminated.
On March 4, 2022, we took delivery of the very high specification, scrubber fitted, 157,000 dwt newbuilding Suezmax tanker vessel M/T Eco Oceano Ca constructed at the Hyundai Samho shipyard in South Korea and consummated the previously announced sale and leaseback of the vessel with a major international financier for total gross proceeds of $48.2 million. The vessel has commenced its previously announced fifteen-year time charter employment.
As of the date of this earnings release, there are currently 4,763,000 Series F Preferred Shares issued and outstanding.
About TOP Ships Inc.
TOP Ships Inc. is an international ship-owning company.
For more information about TOP Ships Inc., visit its website: www.topships.org.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. 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, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
Contact:
Alexandros Tsirikos
Chief Financial Officer
TOP Ships Inc.
Tel: +30 210 812 8107
Email: atsirikos@topships.org
| TOP SHIPS INC. | |||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE | |||||||
| (LOSS)/INCOME FOR THE YEARS ENDED DECEMBER 31, 2019, 2020 and 2021 | |||||||
| (Expressed in thousands of U.S. Dollars - except share and per share data) | |||||||
| 2019 | 2020 | 2021 | |||||
| Revenues (including $1,311, $0 and $0 respectively, from related party) | 66,088 | 60,222 | 56,367 | ||||
| EXPENSES: | |||||||
| Voyage expenses (including $829, $761 and $705 respectively, to related party) | 3,038 | 1,994 | 1,317 | ||||
| Operating lease expense | 7,054 | 755 | 10,840 | ||||
| Vessel operating expenses (including $247, $60 and $17 respectively, to related party) | 22,786 | 21,024 | 15,679 | ||||
| Dry-docking costs | 399 | 356 | 361 | ||||
| Vessel depreciation | 12,392 | 13,174 | 7,670 | ||||
| Management fees-related parties | 2,443 | 5,627 | 2,596 | ||||
| General and administrative expenses (including $360, $360 and $360 respectively, to related party) | 1,730 | 1,932 | 1,943 | ||||
| Other operating loss | - | 4,800 | - | ||||
| Loss on sale of vessels | - | 12,355 | - | ||||
| Impairment on vessels | 12,310 | - | 1,160 | ||||
| Operating income/(loss) | 3,936 | (1,795 | ) | 14,801 | |||
| OTHER EXPENSES: | |||||||
| Interest and finance costs (including $948, $0 and $0 respectively, to related party) | (18,077 | ) | (20,956 | ) | (6,998 | ) | |
| Gain/(Loss) on derivative financial instruments | 1,601 | (814 | ) | 66 | |||
| Interest income | 133 | 34 | - | ||||
| Equity gain in unconsolidated joint ventures | 778 | 713 | 747 | ||||
| Impairment on unconsolidated joint ventures | (3,144 | ) | - | - | |||
| Total other expenses, net | (18,709 | ) | (21,023 | ) | (6,185 | ) | |
| Net (loss) / income | (14,773 | ) | (22,818 | ) | 8,616 | ||
| Less: Deemed dividend for beneficial conversion feature of Series E Shares | (9,339 | ) | (1,067 | ) | (900 | ) | |
| Less: Deemed dividend equivalents on Series E Shares related to redemption value | (4,227 | ) | (3,099 | ) | (437 | ) | |
| Less: Series E Shares Dividend | (2,650 | ) | (1,796 | ) | (1,883 | ) | |
| Net (loss) / income attributable to common shareholders | (30,989 | ) | (28,780 | ) | 5,396 | ||
| (Loss) / Earnings per common share, basic and diluted | (264.63 | ) | (1.22 | ) | 0.14 | ||
| Other comprehensive income | |||||||
| Effective portion of changes in fair value of interest swap contracts | (1,361 | ) | - | - | |||
| Total other comprehensive (loss) / gain | (32,350 | ) | (28,780 | ) | 5,396 | ||
| TOP SHIPS INC. | |||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||
| DECEMBER 31, 2020 AND 2021 | |||||
| (Expressed in thousands of U.S. Dollars - except share and per share data) | |||||
| December 31, | December 31, | ||||
| 2020 | 2021 | ||||
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | 19,328 | 2,370 | |||
| Trade accounts receivable | - | 76 | |||
| Prepayments and other | 904 | 581 | |||
| Inventories | 514 | 671 | |||
| Vessels held for sale | 24,340 | 71,636 | |||
| Total current assets | 45,086 | 75,334 | |||
| FIXED ASSETS: | |||||
| Advances for vessels under construction | 31,654 | 30,579 | |||
| Vessels, net | 136,292 | 156,585 | |||
| Right of use assets from operating leases | 45,222 | 37,279 | |||
| Other fixed assets, net | 548 | 534 | |||
| Total fixed assets | 213,716 | 224,977 | |||
| OTHER NON CURRENT ASSETS: | |||||
| Restricted cash | 4,000 | 4,000 | |||
| Investments in unconsolidated joint ventures | 28,230 | 24,477 | |||
| Deposit asset | 2,000 | 2,000 | |||
| Total non-current assets | 34,230 | 30,477 | |||
| Total assets | 293,032 | 330,788 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Current portion of long-term debt | 5,324 | 7,205 | |||
| Debt related to vessels held for sale | - | 53,202 | |||
| Due to related parties | 5,159 | 29,755 | |||
| Accounts payable | 2,544 | 2,308 | |||
| Accrued liabilities | 959 | 1,145 | |||
| Unearned revenue | 2,074 | 3,658 | |||
| Current portion of derivative financial instruments | 66 | - | |||
| Current portion of Operating lease liabilities | 9,288 | 9,815 | |||
| Total current liabilities | 25,414 | 107,088 | |||
| NON-CURRENT LIABILITIES: | |||||
| Non-current portion of long term debt | 99,295 | 90,163 | |||
| Non-current portion of Operating lease liabilities | 33,805 | 23,948 | |||
| Other non-current liabilities | 300 | 225 | |||
| Total non-current liabilities | 133,400 | 114,336 | |||
| COMMITMENTS AND CONTINGENCIES | - | - | |||
| Total liabilities | 158,814 | 221,424 | |||
| MEZZANINE EQUITY: | |||||
| Preferred stock; 11,264 and 13,452 Series E Shares issued and outstanding at December 31, 2020 and 2021 with $0.01 par value | 13,517 | 16,142 | |||
| Total mezzanine equity | 13,517 | 16,142 | |||
| STOCKHOLDERS’ EQUITY: | |||||
| Preferred stock, $0.01 par value; 20,000,000 shares authorized; of which 100,000 Series D Shares were outstanding at December 31, 2020 and 2021 | 1 | 1 | |||
| Common stock, $0.01 par value; 1,000,000,000 shares authorized; 39,831,972 shares issued and outstanding at December 31, 2020 and 2021 | 398 | 398 | |||
| Additional paid-in capital | 465,672 | 429,577 | |||
| Accumulated deficit | (345,370 | ) | (336,754 | ) | |
| Total stockholders’ equity | 120,701 | 93,222 | |||
| Total liabilities, mezzanine equity and stockholders’ equity | 293,032 | 330,788 | |||
*Non-US GAAP Measures
This report describes Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a “Non-US GAAP” measure). We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, other operating loss, operating lease expenses, vessel impairments, gains on sale of vessels and gains/losses on derivative financial instruments.
Adjusted EBITDA is a non-U.S. GAAP financial measure that is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-U.S. GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. This is achieved by excluding the potentially disparate effects between periods of interest, gain/loss on financial instruments, taxes, depreciation and amortization, other operating losses, operating lease expenses, gains on sale of vessels and vessel impairments, and which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods and other items that the Company believes are not indicative of the ongoing performance of its core operations.
This Non-U.S. GAAP measure should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our definition of Adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries. Adjusted EBITDA does not represent and should not be considered as an alternative to operating income or cash flow from operations, as determined by U.S. GAAP.
Reconciliation of Net (Loss) / Income to Adjusted EBITDA
| (Expressed in thousands of U.S. Dollars) | 2019 | 2020 | 2021 | ||||||
| Net (loss)/income | (14,773 | ) | (22,818 | ) | 8,616 | ||||
| Add: Operating lease expense | 7,054 | 755 | 10,840 | ||||||
| Add: Vessel depreciation | 12,392 | 13,174 | 7,670 | ||||||
| Add: Impairment on vessel | 12,310 | - | 1,160 | ||||||
| Add: Impairment on unconsolidated joint ventures | 3,144 | - | - | ||||||
| Add: Interest and finance costs | 18,077 | 20,956 | 6,998 | ||||||
| Add: Loss/(gain) on derivative financial instruments | (1,601 | ) | 814 | (66 | ) | ||||
| Add: Loss on sale of vessels | - | 12,355 | - | ||||||
| Add: Other operating loss (Time Charter Termination Fees) | - | 4,800 | - | ||||||
| Less: Interest income | (133 | ) | (34 | ) | - | ||||
| Adjusted EBITDA | 36,470 | 30,002 | 35,218 | ||||||
