◾ |
Gross revenues: $50 million in Q3 2021, as compared to $20.4 million in Q3 2020, up 146%
|
◾ |
Net Income: $20.1 million in Q3 2021, as compared to $3.6 million in Q3 2020, up 459%
|
◾ |
◾ |
Adjusted EBITDA1: $32.2 million in Q3 2021, as compared to $7.8 million in Q3 2020, up 312%
|
◾ |
Gross revenues: $100 million in 9M 2021, as compared to $43.5 million in 9M 2020, up 130%
|
◾ |
Net Income: $20.7 million in 9M 2021, as compared to a net loss of $16 million in 9M 2020
|
◾ |
EBITDA1: $47.4 million in 9M 2021, as compared to $11.6 million in 9M 2020, up 307%
|
◾ |
Adjusted EBITDA1: $51.4 million in 9M 2021, as compared to $7.3 million in 9M 2020, up 602%
|
◾ |
Acquisition of 7 modern Japanese Capesizes and sale of our oldest vessel in 2021 to date, representing total investment of $193.2 million and fleet increase of 55%
|
◾ |
Ten new time-charter employment agreements with world-renowned charterers
|
◾ |
100% of the fleet employed under time-charters (“T/Cs”), 88% of which at index-linked rates
|
◾ |
Financing and refinancing transactions of $134.2 million
|
Operating Days
|
TCE
|
||||||||
552
|
$
|
31,273
|
|||||||
TCE - fixed rate
|
184
|
$
|
29,761
|
||||||
TCE - index linked unhedged
|
778
|
$
|
39,281
|
||||||
Total / Average
|
1,514
|
$
|
35,205
|
Vessel Name
|
Vessel
Class
|
Capacity
(DWT)
|
Year Built
|
Yard
|
Scrubber
Fitted
|
Employment Type
|
FFA
conversion
option(19)
|
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)
|
-
|
04/2022
|
Fellowship
|
Capesize
|
179,701
|
2010
|
Daewoo
|
-
|
T/C Index Linked(4)
|
Yes
|
06/2022
|
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
|
06/2022
|
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)
|
-
|
12/2022
|
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
|
01/2022
|
Geniuship
|
Capesize
|
170,057
|
2010
|
Sungdong SB
|
-
|
T/C Index Linked(14)
|
Yes
|
02/2022
|
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(17)
|
Capesize
|
181,453
|
2010
|
Japanese yard
|
-
|
T/C Index Linked(18)
|
Yes
|
12/2022
|
Total / Average age
|
3,011,083
|
11.7
|
(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 Line and delivered to the charterer on May 10, 2021 for a period of minimum 11 to maximum 15 months. The daily charter hire is based on the BCI.
|
(4) |
Chartered by Anglo American, a leading global mining company, and delivered to the charterer in June 2021 for a period of minimum 12 to about 15 months from the delivery date. 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 24 to about 27 months at the charterer’s option. 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 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.
|
(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
plus a net daily scrubber premium of $3,735 until May 2021.
|
(9) |
Chartered by an International commodities trader and will be delivered to the charterer by November 10, 2021 for a period of about 9 to about 12 months. The daily charter hire is based on the BCI.
|
(10) |
Chartered by NYK Line and was delivered to the charterer on July 29, 2021 for a period of minimum 17 to maximum 24 months. The daily charter hire is based on the BCI.
|
(11) |
Chartered by a major South Korean industrial company and was delivered to the charterer on June 15, 2021 for a period employment of minimum 11 to about 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 initially for a period of about 4 to about 7 months, then for a further time charter period of about 10 to about 14 months. Upon
expiration of the previous T/C period, in June 2021, the vessel commenced the second extension period up to minimum January 1, 2022 to maximum April 30, 2022. The daily charter hire is based on the BCI.
|
(14) |
Chartered by Pacbulk Shipping and delivered to the charterer on March 22, 2021 for a period of about 11 to about 14 months from the delivery date. 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) |
Expected delivery within November 2021.
|
(18) |
Chartered by NYK Line and will be delivered to the charterer upon its delivery to the Company for a period of about 13 to about 18 months. The daily charter hire is based on the BCI.
|
(19) |
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.
|
Q3 2021
|
Q3 2020
|
9M 2021
|
9M 2020
|
||||||||||||||
Ownership days (1)
|
1,477
|
975
|
3,632
|
2,795
|
|||||||||||||
Operating days (2)
|
1,439
|
973
|
3,494
|
2,737
|
|||||||||||||
Fleet utilization (3)
|
97.4
|
%
|
99.8
|
%
|
96.2
|
%
|
97.9
|
%
|
|||||||||
TCE rate (4)
|
$
|
30,764
|
$
|
16,219
|
$
|
23,449
|
$
|
10,267
|
|||||||||
Daily Vessel Operating Expenses (5)
|
$
|
5,865
|
$
|
5,984
|
$
|
5,806
|
$
|
5,573
|
(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 the Company’s vessels and in evaluating their 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.
|
Q3 2021
|
Q3 2020
|
9M 2021
|
9M 2020
|
|||||||||||||
Net revenues from vessels
|
48,179
|
19,651
|
96,409
|
42,032
|
||||||||||||
Less: Voyage expenses
|
3,910
|
3,870
|
14,477
|
13,930
|
||||||||||||
Net operating revenues
|
44,269
|
15,781
|
81,932
|
28,102
|
||||||||||||
Operating days
|
1,439
|
973
|
3,494
|
2,737
|
||||||||||||
TCE rate
|
$
|
30,764
|
$
|
16,219
|
$
|
23,449
|
$
|
10,267
|
(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 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.
|
Q3 2021
|
Q3 2020
|
9M 2021
|
9M 2020
|
|||||||||||||
Vessel operating expenses
|
10,042
|
6,399
|
24,470
|
16,141
|
||||||||||||
Less: Pre-delivery expenses
|
1,379
|
565
|
3,381
|
565
|
||||||||||||
Vessel operating expenses before pre-delivery expenses
|
8,663
|
5,834
|
21,089
|
15,576
|
||||||||||||
Ownership days
|
1,477
|
975
|
3,632
|
2,795
|
||||||||||||
Daily Vessel Operating Expenses
|
$
|
5,865
|
$
|
5,984
|
$
|
5,806
|
$
|
5,573
|
Q3 2021
|
Q3 2020
|
9M 2021
|
9M 2020
|
||||||||||||||
Net income/(loss)
|
20,064
|
3,592
|
20,704
|
(16,037
|
)
|
||||||||||||
Add: Net interest and finance cost
|
4,560
|
5,296
|
12,867
|
16,540
|
|||||||||||||
Add: Depreciation and amortization
|
5,490
|
3,835
|
13,827
|
11,143
|
|||||||||||||
EBITDA
|
30,114
|
12,723
|
47,398
|
11,646
|
|||||||||||||
Add: stock based compensation
|
2,773
|
236
|
4,704
|
825
|
|||||||||||||
Less: Gain on sale of vessel
|
(716
|
)
|
-
|
(716
|
)
|
-
|
|||||||||||
Less: Gain on debt refinancing
|
-
|
(5,150
|
)
|
-
|
(5,150
|
)
|
|||||||||||
Adjusted EBITDA
|
32,171
|
7,809
|
51,386
|
7,321
|
Q3 2021
|
Q3 2020
|
9M 2021
|
9M 2020
|
||||||||||||||
Interest and finance costs, net
|
(4,560
|
)
|
(5,296
|
)
|
(12,867
|
)
|
(16,540
|
)
|
|||||||||
Add: Amortization of deferred finance charges
|
739
|
189
|
2,441
|
538
|
|||||||||||||
Add: Amortization of convertible note beneficial conversion feature
|
772
|
1,457
|
2,010
|
3,873
|
|||||||||||||
Add: Amortization of other deferred charges (shares issued to third party)
|
77
|
129
|
251
|
430
|
|||||||||||||
Cash interest and finance costs
|
(2,972
|
)
|
(3,521
|
)
|
(8,165
|
)
|
(11,699
|
)
|
September 30,
2021
|
December 31,
2020*
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents, restricted cash, term deposits and short-term receivable from vessel sale proceeds
|
52,560
|
23,651
|
||||||
Vessels, net
|
396,792
|
256,737
|
||||||
Other assets
|
15,705
|
14,857
|
||||||
TOTAL ASSETS
|
465,057
|
295,245
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Long-term debt and other financial liabilities
|
204,639
|
169,762
|
||||||
Convertible notes
|
17,235
|
14,516
|
||||||
Other liabilities
|
20,932
|
15,273
|
||||||
Stockholders’ equity
|
222,251
|
95,694
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
465,057
|
295,245
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues:
|
||||||||||||||||
Vessel revenues
|
50,020
|
20,352
|
100,043
|
43,500
|
||||||||||||
Commissions
|
(1,841
|
)
|
(701
|
)
|
(3,634
|
)
|
(1,468
|
)
|
||||||||
Vessel revenue, net
|
48,179
|
19,651
|
96,409
|
42,032
|
||||||||||||
Expenses:
|
||||||||||||||||
Voyage expenses
|
(3,910
|
)
|
(3,870
|
)
|
(14,477
|
)
|
(13,930
|
)
|
||||||||
Vessel operating expenses
|
(10,042
|
)
|
(6,399
|
)
|
(24,470
|
)
|
(16,141
|
)
|
||||||||
Management fees
|
(400
|
)
|
(270
|
)
|
(1,029
|
)
|
(773
|
)
|
||||||||
General and administrative expenses
|
(4,419
|
)
|
(1,537
|
)
|
(9,715
|
)
|
(4,682
|
)
|
||||||||
Depreciation and amortization
|
(5,490
|
)
|
(3,835
|
)
|
(13,827
|
)
|
(11,143
|
)
|
||||||||
Gain on sale of vessel
|
716
|
-
|
716
|
-
|
||||||||||||
Operating income/(loss)
|
24,634
|
3,740
|
33,607
|
(4,637
|
)
|
|||||||||||
Other expenses:
|
||||||||||||||||
Interest and finance costs, net
|
(4,560
|
)
|
(5,296
|
)
|
(12,867
|
)
|
(16,540
|
)
|
||||||||
Gain on debt refinancing
|
-
|
5,150
|
-
|
5,150
|
||||||||||||
Other, net
|
(10
|
)
|
(2
|
)
|
(36
|
)
|
(10
|
)
|
||||||||
Total other expenses, net:
|
(4,570
|
)
|
(148
|
)
|
(12,903
|
)
|
(11,400
|
)
|
||||||||
Net income/(loss)
|
20,064
|
3,592
|
20,704
|
(16,037
|
)
|
|||||||||||
Net income/(loss) per common share, basic
|
0.12
|
0.08
|
0.14
|
(0.57
|
)
|
|||||||||||
Weighted average number of common shares outstanding, basic
|
166,710,006
|
46,144,608
|
147,403,541
|
28,118,984
|
||||||||||||
Net income/(loss) per common share, diluted
|
0.10
|
0.04
|
0.13
|
(0.57
|
)
|
|||||||||||
Weighted average number of common shares outstanding, diluted
|
205,974,543
|
89,041,036
|
186,370,709
|
28,118,984
|