ATHENS, Greece, June 5 /PRNewswire-FirstCall/ -- TOP Ships Inc.
(NasdaqGS: TOPS) today announced its operating results for the
first quarter ended March 31, 2009. For the three months ended
March 31, 2009, the Company reported net income of $1,370,000, or
$0.05 per share basic and diluted compared with net loss of
$18,841,000, or $0.93 per share, for the first quarter of 2008. The
weighted average numbers of common shares used in the computations
were 27,522,092 and 20,295,240 for the first quarter of 2009 and
2008, respectively. For the three months ended March 31, 2009,
operating income was $2,357,000, compared with operating loss of
$2,434,000 for the first quarter of 2008. Revenues for the first
quarter of 2009 were $29,793,000, compared to $72,637,000 recorded
in the first quarter of 2008. Evangelos J. Pistiolis, President and
Chief Executive Officer of TOP Ships Inc., commented: We are happy
to report one more profitable quarter in a very challenging
economic environment. Some of the most important developments that
have taken place until today are the following: -- As of March 31,
2009, we were not in compliance with certain loan covenants under
our loan agreements. We have received or agreed to receive waivers
on covenant breaches until 31 March 2010 from four out of five
banks, representing approximately 85% of our total indebtedness. --
Specifically, we have received waivers from HSH Nordbank and Alpha
Bank on certain covenant breaches until 31 March 2010, representing
approximately 54.6% of our total indebtedness. -- We have agreed to
receive waivers, subject to completion of legal documentation, from
DVB and Emporiki Bank on covenant breaches until 31 March 2010,
representing 30.6% of our total indebtedness. -- We are currently
in discussions with RBS regarding waivers until 31 March 2010. --
We took delivery of five out of six of our newbuilding product
tankers. Our final newbuilding is scheduled to be delivered during
the second quarter of 2009. -- In April 2009, we agreed with the
owners of the M/T Relentless to terminate the bareboat charter.
Under this agreement, during the 3rd quarter of 2009 we will
redeliver the M/T Relentless to its owners and pay a termination
fee of $2.5m. The bareboat charter would have expired in 2012. --
Finally we are continuing our efforts to unwind the remaining
bareboat charter-in contracts in order to further reduce our
leasing expenditure." The following key indicators serve to
highlight changes in the financial performance of the Company's
vessels during the first quarters of 2008 and 2009: Tanker Fleet
Three Months Ended March 31, (In U.S. Dollars unless
---------------------------- otherwise stated) 2008 2009 Change
---- ---- ------ Total available ship days 1,698 727 -57.2% Total
operating days 1,345 636 -52.7% Utilization of vessels operating
SPOT or under TCs 79.2% 85.6% 8.0% TCE per ship per day under spot
voyage charter 47,462 - - TCE per ship per day under time charter
25,746 17,204 -33.2% Average revenues per day under Bareboat
charters - 13.990 - Drybulk Fleet Three Months Ended March 31, (In
U.S. Dollars unless ---------------------------- otherwise stated)
2008 2009 Change ---- ---- ------ Total available ship days 390 450
15.4% Total operating days 385 434 12.7% Utilization of vessels
operating SPOT or under TCs 98.5% 95.6% -3.0% TCE per ship per day
under spot Voyage charters - - - TCE per ship per day under time
charter 51,074 40,590 -20.5% Average revenues per day under
bareboat charters 51,567 49,489 -4.0% Fleet Report: As of March 31,
2009, the Company's fleet consisted of sixteen vessels, or 0.9
million dwt (including eleven owned and five vessels sold and
leased back for a period of five to seven years) as compared to
twenty three vessels, or 2.1 million dwt on March 31, 2008
(including twelve owned, one under capital lease and ten vessels
sold and leased back for a period of five to seven years). On
February, 2009, the Company took delivery of the vessels Miss
Marilena and Lichtenstein from SPP Plant & Shipbuilding Co.,
Ltd of the Republic of Korea. Miss Marilena and Lichtenstein are
the two out of six 50,000 dwt product / chemical tankers to be
delivered within the first and second quarter of 2009. Miss
Marilena and Lichtenstein entered into a bareboat time-charter
employment for a period of ten years at a daily rate of $14,400 and
$14,550, respectively. On March 19, 2009, the Company took delivery
of the vessels Ionian Wave and Tyrrhenian Wave from SPP Plant &
Shipbuilding Co., Ltd of the Republic of Korea. Ionian Wave and
Tyrrhenian Wave are the third and fourth out of six 50,000dwt
product / chemical tankers to be delivered within the first and
second quarter of 2009. Ionian Wave and Tyrrhenian Wave entered
into a bareboat time-charter employment for a period of seven years
at a daily rate of $14,300, with three successive one-year options
at a higher daily rate. On May 22, 2009, the Company took delivery
of the vessel Britto from SPP Plant & Shipbuilding Co., Ltd of
the Republic of Korea. Britto is the fifth out of six 50,000dwt
product / chemical tankers to be delivered within the first and
second quarter of 2009. Britto entered into a bareboat time-charter
employment for a period of ten years at a daily rate of $14,550.
Fleet Deployment: Tanker Vessels: During the first quarter of 2009,
seven of the Company's Handymax tankers operated under long-term
employment contracts that provide for a base rate and additional
profit sharing earning on average $17,204 per vessel per day on a
time charter equivalent (TCE) basis, including profit-sharing
allocated to the Company and four under bareboat charter earning on
average $13,990 per vessel per day. Drybulk Vessels: During the
first quarter of 2009, four of the Company's drybulk vessels
operated under time charter contracts earning on average $40,590
per vessel per day on a time charter equivalent (TCE) basis and one
under bareboat charter earning on average $49,489 per vessel
including the amortization of the fair value of acquired time
charter contracts of $26,077 per vessel per day. The following
table presents the Company's current fleet list and employment:
Year Daily Dwt Built Charter Type Expiry Base Rate 12 Handymax
Tankers Relentless(A) 47,084 1992 Time Charter Q2/2009 $14,000
Vanguard(B) 47,084 1992 Time Charter Q1/2010 $15,250 Spotless(B)
47,094 1991 Time Charter Q1/2010 $15,250 Doubtless(B) 47,076 1991
Time Charter Q1/2010 $15,250 Faithful(B) 45,720 1992 Time Charter
Q2/2010 $14,500 Dauntless(C) 46,168 1999 Time Charter Q1/2010
$16,250 Ioannis P(C). 46,346 2003 Time Charter Q4/2010 $18,000 Miss
Marilena(C) 50,000 2009 Bareboat Charter Q1-2/2019 $14,400
Lichtenstein(C) 50,000 2009 Bareboat Charter Q1-2/2019 $14,550
Ionian Wave(C) 50,000 2009 Bareboat Charter Q1-2/2016 $14,300
Thyrrhenian Wave(C) 50,000 2009 Bareboat Charter Q1-2/2016 $14,300
Britto(C) 50,000 2009 Bareboat Charter Q1-2/2019 $14,550 1
Newbuilding Product Tanker Hull S-1033 50,000 2009 Bareboat Charter
Q1-2/2019 $14,550 Total Tanker dwt 626,572 5 Drybulk Vessels
Cyclades(C) 75,681 2000 Time Charter Q2/2011 $54,250 Amalfi(C)
45,526 2000 Time Charter Q2/2009 $10,000 Voc Gallant(C) 51,200 2002
Bareboat Charter Q2/2012 $24,000 Pepito(C) 75,928 2001 Time Charter
Q2/2013 $41,000 Astrale(C) 75,933 2000 Time Charter Q2/2009 $12,000
Total Drybulk dwt 324,268 TOTAL DWT 950,840 Profit Sharing Above
Base Rate (2009) --------------- 12 Handymax Tankers Relentless(A)
50% thereafter Vanguard(B) 50% thereafter Spotless(B) 50%
thereafter Doubtless(B) 50% thereafter Faithful(B) 100% first $500
+ 50% thereafter Dauntless(C) 100% first $1,000 + 50% thereafter
Ioannis P(C). 100% first $1,000 + 50% thereafter Miss Marilena(C)
None Lichtenstein(C) None Ionian Wave(C) None Thyrrhenian Wave(C)
None Britto(C) None 1 Newbuilding Product Tanker Hull S-1033 None
Total Tanker dwt 5 Drybulk Vessels Cyclades(C) None Amalfi(C) None
Voc Gallant(C) None Pepito(C) None Astrale(C) None A. Vessel sold
and leased back in September 2005 for a period of 7 years. B.
Vessels sold and leased back in March 2006 for a period of 5 years.
C. Owned vessels. Liquidity and Capital Resources Since the
Company's formation, the sources of funds have been cash from
operations, long-term borrowings and equity provided by the
shareholders. The Company's principal use of funds has been capital
expenditures to establish and grow its fleet, maintain the quality
of its vessels, comply with international shipping standards and
environmental laws and regulations, fund working capital
requirements and make principal repayments on outstanding served
loan facilities. The Company expects to rely upon operating cash
flows, long-term borrowings and equity financings to implement its
future growth plan. As of March 31, 2009, the Company had total
indebtedness under senior secured credit facilities of $398.3
million (excluding unamortized financing fees of $4.3 million) with
its lenders, the Royal Bank of Scotland ("RBS"), HSH Nordbank
("HSH"), DVB Bank ("DVB"), Alpha Bank ("ALPHA") and Emporiki Bank
("EMPORIKI"), maturing from 2013 through 2019. The Company's
non-restricted cash as of March 31, 2009 was $13.3 million. Loan
Covenants and Discussions with Banks As at March 31, 2009, the
Company was not in compliance with certain of its loan covenants.
As of the date of this release, the Company had received certain
waivers on these covenant breaches until 31 March 2010 from HSH
Nordbank and Alpha Bank, representing approximately 54.6% of total
indebtedness as set forth below HSH Nordbank The Company has
entered into amendatory agreements with HSH Nordbank under its
Bulker Financing Facility, initial amount of $95m / outstanding as
of March 31, 2009 of $51.1m, and the Product Tanker Financing
Facility, initial amount of $121m / outstanding as of March 31,
2009 of $92.8m. These amendatory agreements mainly provide for: (1)
waiver regarding financial covenants through March 31, 2010, except
for adjusted net worth for which a waiver has not been received yet
(2) waiver for asset coverage covenants through March 31, 2010 (3)
an increased applicable margin; (4) an amendment fee; (5) cross
collateralisation of the two facilities. Alpha Bank The Company has
entered into amendatory agreements with Alpha Bank under its Bulker
Financing Facility, initial amount of $48m / outstanding as of
March 31, 2009 of $34.8m, and the Product Tanker Financing Facility
of $39m. These amendatory agreements mainly provide for: (1) a
waiver regarding financial and asset coverage covenants through
March 31, 2010; (2) an increased applicable margin; (3) cross
collateralisation of the two facilities. In addition, the Company
has agreed with DVB and Emporiki Bank to receive waivers until 31
March 2010, representing approximately 30.6% of total indebtedness.
The agreements are preliminary and are subject to execution of
definitive documents whereby certain terms of the existing
financing agreements, will be amended. Finally, the Company is
currently in discussions with RBS in order to receive waivers until
31 March 2010. The outcome of these discussions remains unknown.
Due to the fact that the Company has not yet reached definitive
agreements with all its banks with regards to covenant breaches, it
has in this release an unclassified balance sheet which does not
show a breakdown of its debt and swap facilities into current and
long term. If the Company receives waivers from all its lenders
then the debt and swap facilities would be classified as current
and long term portions based on when the installments fall due. If
the Company cannot obtain covenant waivers from all of its lenders,
all outstanding loan balances will be classified as current as a
result of cross default covenants attached to all loan agreements.
In addition, the Company may be in non-compliance with these or
other covenants, such as minimum liquidity, in future quarters to
the extent it has not received waivers for such non-compliance. If
the Company is not able to obtain covenant waivers or
modifications, for current covenant breaches or for covenant
breaches that may occur in future reporting periods, its lenders
may require the Company to post additional collateral, enhance its
equity and liquidity, increase its interest payments or pay down
its indebtedness to a level where it is in compliance with its loan
covenants, sell vessels, or they may accelerate its indebtedness,
which would impair its ability to continue to conduct its business.
In order to further enhance its liquidity, the Company may find it
necessary to sell vessels at a time when vessel prices are low, in
which case it will recognize losses and a reduction in its
earnings, which could affect its ability to raise additional
capital necessary for the Company to comply with its loan covenants
and/or the additional lender requirements described above.
Conference Call and Webcast Top Ships' management team will host a
conference call to review the results and discuss other corporate
news and its outlook on Friday, June 5, 2009, at 11:00 AM ET. Those
interested in listening to the live webcast may do so by going to
the Company's website at http://www.topships.org/, or by going to
http://www.investorcalendar.com/. The telephonic replay of the
conference call will be available by dialling 1-877-660-6853 (from
the US and Canada) or +1-201-612-7415 (from outside the US and
Canada) and by entering account number 286 and conference ID number
319023. An online archive will also be available immediately
following the call at the sites noted above. Both are available for
one week, through June 5, 2009. About TOP Ships Inc. TOP Ships
Inc., formerly known as TOP Tankers Inc., is an international
provider of worldwide seaborne crude oil and petroleum products and
drybulk transportation services. The Company operates a combined
tanker and drybulk fleet as follows: -- A fleet of twelve
double-hull handymax tankers, with a total carrying capacity of
approximately 0.6 million dwt, of which 76% are sister ships. Seven
of the Company's handymaxes are on time charter contracts with an
average term of ten months with all of the time charters including
profit sharing agreements above their base rates. Five of the
Company's handymax tankers are fixed on a bareboat charter basis
with an average term of eight and a half years. -- One newbuilding
product tanker, which is expected to be delivered in 2009. The
expected newbuilding has fixed rate bareboat employment agreement
for a period of ten years. -- A fleet of five drybulk vessels with
a total carrying capacity of approximately 0.3 million dwt, of
which 47% are sister ships. All of the Company's drybulk vessels
have fixed rate employment contracts for an average period of 23
months. Forward Looking Statement Certain statements and
information included in this release constitute "forward-looking
statements" within the meaning of the Federal Private Securities
Litigation Reform Act of 1995. 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 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 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," "will,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements. Important factors that, in our
view, could affect the matters discussed in these forward-looking
statements include, general market conditions, including
fluctuations in charter rates and vessel values, changes in the
demand for our vessels, offers that may be received from third
parties, potential liability from pending or future litigation,
general domestic and international political conditions, and other
factors. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks
and uncertainties. Contact: Michael Mason (investors) Alexandros
Tsirikos Allen & Caron Inc TOP Ships Inc. 212 691 8087 011 30
210 812 8180 TABLES FOLLOW TOP SHIPS INC. CONSOLIDATED CONDENSED
STATEMENTS OF INCOME (Expressed in thousands of U.S. Dollars -
except for share and per share data) Three Months Ended March 31,
2008 2009 (Unaudited) (Unaudited) REVENUES: Revenues $72,637
$29,793 EXPENSES: Voyage expenses 10,324 1,150 Charter hire expense
17,988 5,787 Amortization of deferred gain on sale and leaseback of
vessels (1,297) (808) Other vessel operating expenses 25,842 8,653
Dry-docking costs 4,049 1,263 Depreciation 10,510 6,340 General and
administrative expenses 7,705 5,060 Foreign currency (gains) /
losses, net 532 (9) Gain on sale of vessels (582) - Operating
income (loss) (2,434) 2,357 OTHER INCOME (EXPENSES): Interest and
finance costs (7,983) (2,271) Gain / (loss) on financial
instruments (8,822) 1,205 Interest income 430 189 Other, net (32)
(110) Total other expenses, net (16,407) (987) Net Income (loss)
$(18,841) $1,370 Earnings (loss) per share, basic and diluted
$(0.93) $0.05 Weighted average common shares outstanding, basic
20,295,240 27,522,092 Weighted average common shares outstanding,
diluted 20,295,240 27,522,092 TOP SHIPS INC. CONSOLIDATED CONDENSED
BALANCE SHEETS (Expressed in thousands of U.S. Dollars - except for
share and per share data) December 31, March 31, 2008 2009 ASSETS
(Unaudited) (Unaudited) CASH AND CASH EQUIVALENTS $46,242 $13,273
ADVANCES FOR VESSELS ACQUISITIONS / UNDER CONSTRUCTION 159,971
60,199 VESSELS, NET 414,515 605,432 RESTRICTED CASH 52,575 38,343
OTHER ASSETS 25,072 23,156 Total assets $698,375 $740,403
LIABILITIES AND STOCKHOLDERS' EQUITY FINANCIAL INSTRUMENTS 16,438
14,373 FAIR VALUE OF BELOW MARKET TIME CHARTER 3,911 1,565 BANK
DEBT 342,479 393,928 DEFERRED GAIN ON SALE AND LEASEBACK OF VESSELS
15,479 14,902 OTHER LIABILITIES 28,017 22,487 Total liabilities
406,324 447,255 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
292,051 293,148 Total liabilities and stockholders' equity $698,375
$740,403 TOP SHIPS INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS (Expressed in thousands of U.S. Dollars) Three Months Ended
March 31, 2008 2009 (Unaudited) (Unaudited) Cash Flows from (used
in) Operating Activities: Net income (loss) $(18,841) $1,370
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 12,087 6,696
Stock-based compensation expense 483 459 Change in fair value of
financial instruments 8,859 (2,065) Amortization of deferred gain
on sale and leaseback of vessels (1,297) (808) Amortization of fair
value below market time charter (6,099) (2,347) Loss on sale of
other fixed assets 25 93 Gain on sale of vessels (582) - Change in
operating assets and liabilities 13,634 1,006 Net Cash from (used
in) Operating Activities 8,269 4,404 Cash Flows from (used in)
Investing Activities: Principal payments received under capital
lease 3,700 - Principal payments paid under capital lease (928) -
Advances for vessels acquisitions / under construction (14,768)
(19,504) Vessel acquisitions and improvements (115,747) (77,735)
Insurance claims recoveries 125 151 Increase in restricted cash
(3,500) - Decrease in restricted cash - 14,232 Net proceeds from
sale of vessels 47,867 - Net proceeds from sale of other fixed
assets 49 197 Acquisition of other fixed assets (520) (295) Net
Cash from (used in) Investing Activities (83,722) (82,954) Cash
Flows from (used in) Financing Activities: Proceeds from long-term
debt 100,180 74,165 Payments of long-term debt (42,085) (22,799)
Financial instrument termination payments (5,000) Cancellation of
fractional shares (2) - Repurchase and cancellation of common stock
- (732) Payment of financing costs (277) (53) Net Cash from (used
in) Financing Activities 57,816 45,581 Net increase (decrease) in
cash and cash equivalents (17,637) (32,969) Cash and cash
equivalents at beginning of period 26,012 46,242 Cash and cash
equivalents at end of period $8,375 $13,273 SUPPLEMENTAL DISCLOSURE
OF NON-CASH INVESTING ACTIVITIES Fair value below market time
charter $12,647 $12,647 Amounts owed for capital expenditures
$2,469 $289 DATASOURCE: TOP Ships Inc. CONTACT: Michael Mason
(investors) of Allen & Caron Inc, +1-212-691-8087, , for TOP
Ships Inc.; or Alexandros Tsirikos of TOP Ships Inc., 011 30 210
812 8180, Web Site: http://www.topships.org/
Copyright