◾ |
Earnings per share (“EPS”) (basic & diluted): $0.02 and Adjusted EPS1 (basic & diluted): $0.04
|
◾ |
Net revenues: $29.7 million in Q1 2022, as compared to $20.4 million in Q1 2021, up 46%
|
◾ |
Net Income: $3.7 million in Q1 2022, as compared to Net Loss of $1.3 million in Q1 2021
|
◾ |
Adjusted Net Income1: $7.7 million in Q1 2022, as compared to Adjusted Net Income of $0.1 million in Q1 2021
|
◾ |
EBITDA1: $12.8 million in Q1 2022, as compared to $6.5 million in Q1 2021, up 97%
|
◾ |
Adjusted EBITDA1: $16.8 million in Q1 2022, as compared to $7.9 million in Q1 2021, up 113%
|
◾ |
Declares a quarterly dividend of $0.025 per share for Q1 2022
|
◾ |
Dividend payable on or about July 14, 2022 to all shareholders of record as of June 28, 2022
|
◾ |
Buyback of $10.0 million of the outstanding convertible note within Q1 2022; total buybacks of convertible notes, common shares and warrants of $26.7 million in Q4 2021-Q1 2022
|
◾ |
New refinancing facility of $21.3 million with a prominent Japanese lender with improved pricing and overall loan terms
|
◾ |
Continuous investment to upgrade the energy efficiency and environmental footprint of our fleet
|
Vessel Name
|
Vessel
Class
|
Capacity (DWT)
|
Year Built
|
Yard
|
Scrubber Fitted
|
Employment Type
|
FFA
conversion
option(18) |
Earliest
T/C
expiration
|
Patriotship
|
Capesize
|
181,709
|
2010
|
Imabari
|
Yes
|
T/C – fixed rate(1)
|
-
|
06/2022
|
Worldship
|
Capesize
|
181,415
|
2012
|
Koyo - Imabari
|
Yes
|
T/C – fixed rate(2)
|
-
|
09/2022
|
Hellasship
|
Capesize
|
181,325
|
2012
|
Imabari
|
-
|
T/C Index Linked(3)
|
-
|
12/2023
|
Fellowship
|
Capesize
|
179,701
|
2010
|
Daewoo
|
-
|
T/C Index Linked(4)
|
Yes
|
06/2024
|
Championship
|
Capesize
|
179,238
|
2011
|
Sungdong SB
|
Yes
|
T/C Index Linked(5)
|
Yes
|
11/2023
|
Partnership
|
Capesize
|
179,213
|
2012
|
Hyundai
|
Yes
|
T/C Index Linked(6)
|
Yes
|
10/2022
|
Knightship
|
Capesize
|
178,978
|
2010
|
Hyundai
|
Yes
|
T/C Index Linked(7)
|
-
|
05/2023
|
Lordship
|
Capesize
|
178,838
|
2010
|
Hyundai
|
Yes
|
T/C Index Linked(8)
|
Yes
|
05/2022
|
Goodship
|
Capesize
|
177,536
|
2005
|
Mitsui
|
-
|
T/C Index Linked(9)
|
Yes
|
08/2022
|
Friendship
|
Capesize
|
176,952
|
2009
|
Namura
|
-
|
T/C Index Linked(10)
|
-
|
12/2023
|
Tradership
|
Capesize
|
176,925
|
2006
|
Namura
|
-
|
T/C Index Linked(11)
|
Yes
|
05/2022
|
Flagship
|
Capesize
|
176,387
|
2013
|
Mitsui
|
-
|
T/C Index Linked(12)
|
Yes
|
05/2026
|
Gloriuship
|
Capesize
|
171,314
|
2004
|
Hyundai
|
-
|
T/C Index Linked(13)
|
Yes
|
12/2022
|
Geniuship
|
Capesize
|
170,057
|
2010
|
Sungdong SB
|
-
|
T/C Index Linked(14)
|
Yes
|
01/2023
|
Premiership
|
Capesize
|
170,024
|
2010
|
Sungdong SB
|
Yes
|
T/C Index Linked(15)
|
-
|
11/2022
|
Squireship
|
Capesize
|
170,018
|
2010
|
Sungdong SB
|
Yes
|
T/C Index Linked(16)
|
-
|
12/2022
|
Dukeship
|
Capesize
|
181,453
|
2010
|
Sasebo
|
-
|
T/C Index Linked(17)
|
Yes
|
12/2022
|
Total / Average age
|
3,011,083
|
12.3
|
(1) |
Chartered by a European cargo operator and delivered to the charterer on June 7, 2021 for a period of about 12 to about 18 months. The daily charter hire is fixed at $31,000.
|
(2) |
Chartered by a U.S. commodity trading company and delivered to the charterer on September 2, 2021 for a period of about 12 to about 16 months. The daily charter hire is fixed at $31,750.
|
(3) |
Chartered by NYK and delivered to the charterer on May 10, 2021 for an initial period of minimum 11 to maximum 15 months, which was further extended until minimum December 2023 to maximum March 2024. The daily charter hire is based on the
BCI.
|
(4) |
Chartered by Anglo American, a leading global mining company, and delivered to the charterer on June 18, 2021 for an initial period of minimum 12 to about 15 months, which was further extended for a period of minimum 20 to about 24 months
starting as of October 2022. The daily charter hire is based on the BCI.
|
(5) |
Chartered by Cargill and delivered to the charterer on November 7, 2018 for a period of employment of 60 months, with an additional period of about 16 to about 18 months. The daily charter hire is based on the BCI plus a net daily scrubber
premium of $1,740.
|
(6) |
Chartered by a major European utility and energy company and delivered to the charterer on September 11, 2019 for an initial period of minimum 33 to maximum 37 months with two optional periods of about 11 to maximum 13 months. The
time-charter (“T/C”) was extended until October 2022 with two optional periods of about 11 to maximum 13 months. The daily charter hire is based on the BCI.
|
(7) |
Chartered by Glencore and delivered to the charterer on May 15, 2020 for a period of about 36 to about 42 months with two optional periods of 11 to 13 months. The daily charter hire is based on the BCI.
|
(8) |
Chartered by a major European utility and energy company and delivered on August 4, 2019 for a period of minimum 33 to maximum 37 months with an optional period of about 11 to maximum 13 months. The daily charter hire is based on the BCI.
|
(9) |
Chartered by an international commodities trader and delivered to the charterer on November 12, 2021 for a period of about 9 to about 12 months. The daily charter hire is based on the BCI.
|
(10) |
Chartered by NYK and delivered to the charterer on July 29, 2021 for an initial period of minimum 17 to maximum 24 months, which was extended until minimum December 2023 / maximum March 2024. The daily charter hire is based on the BCI.
|
(11) |
Chartered by a major South Korean industrial company and delivered to the charterer on June 15, 2021 for a period of minimum 11 to maximum 15 months. The daily charter hire is based on the BCI.
|
(12) |
Chartered by Cargill. The vessel was delivered to the charterer on May 10, 2021 for a period of 60 months. The daily charter hire is based at a premium over the BCI minus $1,325 per day.
|
(13) |
Chartered by Pacbulk Shipping and delivered to the charterer on April 23, 2020 for a period of about 11 to about 15 months. In December 2021, the T/C was further extended until minimum December 16, 2022, up to
maximum April 15, 2023. The daily charter hire is based on the BCI.
|
(14) |
Chartered by NYK and delivered to the charterer on February 6, 2022 for a period of about 11 to about 15. The daily charter hire is based on the BCI.
|
(15) |
Chartered by Glencore and delivered to the charterer on November 29, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is
based on the BCI plus a net daily scrubber premium of $2,055.
|
(16) |
Chartered by Glencore and delivered to the charterer on December 19, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net
daily scrubber premium of $2,055.
|
(17) |
Chartered by NYK and delivered to the charterer on December 1, 2021 for a period of about 13 to about 18 months. The daily charter hire is based on the BCI.
|
(18) |
The Company has the option to convert the index-linked rate to a fixed one for a period ranging between 2 and 12 months, based on the prevailing Capesize FFA Rate for the selected period.
|
Q1 2022
|
Q1 2021
|
|||||||
Ownership days (1)
|
1,530
|
990
|
||||||
Operating days (2)
|
1,482
|
932
|
||||||
Fleet utilization (3)
|
96.9
|
%
|
94.1
|
%
|
||||
TCE rate (4)
|
$
|
19,357
|
$
|
16,219
|
||||
Daily Vessel Operating Expenses (5)
|
$
|
6,444
|
$
|
5,605
|
(1) |
Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the
amount of revenues and the amount of expenses that the Company recorded during a period.
|
(2) |
Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without
having finalized agreements for their next employment.
|
(3) |
Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.
|
(4) |
TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses,
canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the
most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of our vessels and because the Company believes that it provides useful information to
investors regarding our financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies. The following table reconciles the Company’s net revenues from vessels to the TCE rate.
|
Q1 2022
|
Q1 2021
|
|||||||
Net revenues from vessels
|
29,666
|
20,398
|
||||||
Less: Voyage expenses
|
979
|
5,282
|
||||||
Net operating revenues
|
28,687
|
15,116
|
||||||
Operating days
|
1,482
|
932
|
||||||
TCE rate
|
$
|
19,357
|
$
|
16,219
|
(5) |
Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses, excluding pre delivery
costs by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating
expenses to daily vessel operating expenses.
|
Q1 2022
|
Q1 2021
|
|||||||
Vessel operating expenses
|
9,912
|
5,549
|
||||||
Less: pre-delivery expenses
|
53
|
-
|
||||||
Vessel operating expenses
before pre-delivery expenses
|
9,859
|
5,549
|
||||||
Ownership days
|
1,530
|
990
|
||||||
Daily Vessel Operating Expenses
|
$
|
6,444
|
$
|
5,605
|
Q1 2022
|
Q1 2021
|
||||
Net income / (loss)
|
3,671
|
(1,321)
|
|||
Add: Net interest and finance cost
|
2,850
|
4,030
|
|||
Add: Depreciation and amortization
|
6,265
|
3,817
|
|||
EBITDA
|
12,786
|
6,526
|
|||
Add: Stock based compensation
|
2,679
|
1,403
|
|||
Add: Loss on extinguishment of debt
|
1,279
|
-
|
|||
Add: Loss on forward freight agreements, net
|
36
|
-
|
|||
Adjusted EBITDA
|
16,780
|
7,929
|
Q1 2022
|
Q1 2021
|
||||
Net income / (loss)
|
3,671
|
(1,321)
|
|||
Add: Stock based compensation
|
2,679
|
1,403
|
|||
Add: Loss on extinguishment of debt
|
1,279
|
-
|
|||
Add: Loss on forward freight agreements, net
|
36
|
-
|
|||
Adjusted net income
|
7,665
|
82
|
|||
Adjusted net income per common share, basic
|
0.04
|
0.00
|
|||
Weighted average number of common shares outstanding, basic
|
172,311,745
|
114,757,841
|
|||
Adjusted net income per common share, diluted
|
0.04
|
0.00
|
|||
Weighted average number of common shares outstanding, diluted
|
177,218,619
|
114,757,841
|
Q1 2022
|
Q1 2021
|
||||
Interest and finance costs, net
|
(2,850)
|
(4,030)
|
|||
Add: Amortization of deferred finance charges and other discounts
|
658
|
808
|
|||
Add: Amortization of convertible note beneficial conversion feature3
|
-
|
558
|
|||
Cash interest and finance costs
|
(2,192)
|
(2,664)
|
|
Operating Days
|
TCE
|
||||||
TCE - fixed rate (index-linked conversion)
|
184
|
$
|
25,242
|
|||||
TCE - fixed rate
|
180
|
$
|
29,385
|
|||||
TCE – index-linked unhedged
|
978
|
$
|
23,554
|
|||||
Total / Average
|
1,342
|
$
|
24,569
|
(i) |
$5 million of the note was retired on January 26, 2022; and
|
(ii) |
$5 million of the note was retired on March 10, 2022
|
March 31,
2022
|
December 31, 2021*
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents, restricted cash and term deposits
|
38,885
|
47,126
|
||||||
Vessels, net
|
420,639
|
426,062
|
||||||
Other assets
|
16,920
|
14,023
|
||||||
TOTAL ASSETS
|
476,444
|
487,211
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Long-term debt and other financial liabilities
|
211,793
|
215,174
|
||||||
Convertible notes
|
9,972
|
7,573
|
||||||
Other liabilities
|
23,718
|
19,988
|
||||||
Stockholders’ equity5
|
230,961
|
244,476
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
476,444
|
487,211
|
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Vessel revenue, net
|
29,666
|
20,398
|
||||||
Expenses:
|
||||||||
Voyage expenses
|
(979
|
)
|
(5,282
|
)
|
||||
Vessel operating expenses
|
(9,912
|
)
|
(5,549
|
)
|
||||
Management fees
|
(376
|
)
|
(281
|
)
|
||||
General and administrative expenses
|
(4,315
|
)
|
(2,730
|
)
|
||||
Depreciation and amortization
|
(6,265
|
)
|
(3,817
|
)
|
||||
Loss on forward freight agreements, net
|
(36
|
)
|
-
|
|||||
Operating income
|
7,783
|
2,739
|
||||||
Other (expenses) / income:
|
||||||||
Interest and finance costs5
|
(2,850
|
)
|
(4,030
|
)
|
||||
Loss on extinguishment of debt
|
(1,279
|
)
|
-
|
|||||
Other, net
|
17
|
(30
|
)
|
|||||
Total other expenses, net:
|
(4,112
|
)
|
(4,060
|
)
|
||||
Net income / (loss)
|
3,671
|
(1,321
|
)
|
|||||
Net income / (loss) per common share, basic
|
0.02
|
(0.01
|
)
|
|||||
Weighted average number of common shares outstanding, basic
|
172,311,745
|
114,757,841
|
||||||
Net income / (loss) per common share, diluted
|
0.02
|
(0.01
|
)
|
|||||
Weighted average number of common shares outstanding, diluted
|
177,218,619
|
114,757,841
|
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Net cash provided operating activities
|
7,549
|
1,564
|
||||||
Vessels acquisitions and improvements
|
(2,042
|
)
|
(20,886
|
)
|
||||
Term deposits
|
1,500
|
(1,000
|
)
|
|||||
Other fixed assets, net
|
(18
|
)
|
-
|
|||||
Net cash used in investing activities
|
(560
|
)
|
(21,886
|
)
|
||||
Proceeds from secured long-term debt
|
21,300
|
-
|
||||||
Repayments of long-term debt and other financial liabilities
|
(24,652
|
)
|
(38,833
|
)
|
||||
Repayments of convertible notes
|
(10,000
|
)
|
-
|
|||||
Payments of financing and stock issuance costs
|
(378
|
)
|
(63
|
)
|
||||
Proceeds from issuance of common stock and warrants, net of underwriters fees and commissions
|
-
|
92,617
|
||||||
Net cash (used in) / provided by financing activities
|
(13,730
|
)
|
53,721
|
|||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Cash paid during the period for interest
|
2,324
|
2,097
|
||||||
Noncash investing activities
|
||||||||
Vessels acquisitions and improvements
|
836
|
752
|
||||||
Noncash financing activities
|
||||||||
Dividends declared but not paid
|
8,916
|
-
|