Seanergy Maritime Holdings Corp. Reports Financial Results for the Fourth Quarter and Twelve Months Ended December 31, 2015
ATHENS, GREECE -- (Marketwired) -- 03/15/16 -- Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) announced today its financial results for the fourth quarter and twelve months ended December 31, 2015.
For the three months ended December 31, 2015, the Company generated net revenues of $6.8 million. Total equity as of December 31, 2015 was $23.3 million.
Stamatis Tsantanis, the Company's Chairman & Chief Executive Officer, stated:
"I am pleased to announce that in the fourth quarter of 2015, we successfully completed the $185 million fleet acquisition that we signed in August of 2015. As a result, our fleet now consists of 6 Capesize and 2 Supramax vessels. In 2015, our cargo carrying capacity grew from zero to more than 1.1 million DWT."
"Seanergy's acquisition cost, which is among the lowest of our peers, coupled with our advantageous financing arrangements should provide significant upside potential for our investors. Looking forward, we firmly believe that current market conditions represent a unique opportunity to acquire quality tonnage at 30-year historical low prices. For that reason, we intend to pursue acquisition opportunities that we believe can further enhance value for our shareholders. We believe that Seanergy is the right platform in dry bulk listed space for further fleet expansion in order to capitalize on the recovery of the freight market and asset values."
Current Company Fleet
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Capacity (in
Vessel Name Vessel Class DWT) Year Built Yard
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Leadership Capesize 171,199 2001 Koyo - Imabari
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Geniuship Capesize 170,057 2010 Sungdong SB
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Gloriuship Capesize 171,314 2004 Hyundai HI
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Squireship Capesize 170,018 2010 Sungdong SB
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Championship Capesize 179,238 2011 Sungdong SB
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Premiership Capesize 170,024 2010 Sungdong SB
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Gladiatorship Supramax 56,819 2010 CSC Jinling Shipyard
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Guardianship Supramax 56,884 2011 CSC Jinling Shipyard
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Total / Average 1,145,553 7.3 Years
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Fleet Data:
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Q4 2015 Q4 2014 FY 2015 FY 2014
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Ownership days (1) 560 - 776 268
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Available days (2) 508 - 724 268
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Operating days (3) 409 - 598 142
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Fleet utilization (4) 73.0% N/A 77.1% 53.0%
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TCE rate (5) $5,034 N/A $6,232 $5,014
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Daily Vessel Operating Expenses (6) $5,011 N/A $5,428 $3,754
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(1) Ownership days are the total number of days in a period during which the
vessels in a fleet have been owned. 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) Available days are the number of ownership days less the aggregate
number of days that vessels are off-hire due to major repairs, dry
dockings or special or intermediate surveys. The shipping industry uses
available days to measure the number of ownership days in a period
during which vessels should be capable of generating revenues. During
the year ended December 31, 2015, the Company incurred 52 off-hire days
for vessel surveys.
(3) Operating days are the number of available days in a period less the
aggregate number of days that vessels are off-hire for any reason,
including off-hire days between successive voyages, as well as other
unforeseen circumstances. The shipping industry uses operating days to
measure the aggregate number of days in a period during which vessels
actually generate revenues. In the three months ended December 31, 2015,
the company incurred 99 off-hire days between voyages and zero off-hires
due to other unforeseen circumstances. In the twelve months ended
December 31, 2015, the company incurred 126 off-hire days between
voyages and zero off-hires due to other unforeseen circumstances.
(4) Fleet utilization is the percentage of time that our vessels were
generating revenue, and is determined by dividing operating days by
ownership days for the relevant period.
(5) TCE rate is defined as our net revenue less voyage expenses during a
period divided by the number of our operating days during the period.
Voyage expenses include port charges, bunker (fuel oil and diesel oil)
expenses, canal charges and other commissions. We include TCE rate, a
non-GAAP measure, as we believe it provides additional meaningful
information in conjunction with net revenues from vessels, the most
directly comparable US GAAP measure, because it assists our management
in making decisions regarding the deployment and use of our vessels and
in evaluating their financial performance. Our calculation of TCE rate
may not be comparable to that reported by other companies. The following
table reconciles our net revenues from vessels to TCE rate.
(In thousands of US Dollars, except operating days and TCE rate)
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Q4 2015 Q4 2014 FY 2015 FY 2014
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Net revenues from vessels 6,822 - 11,223 2,010
Less: Voyage expenses 4,763 - 7,496 1,298
Net operating revenues 2,059 - 3,727 712
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Operating days 409 N/A 598 142
TCE rate 5,034 N/A 6,232 5,014
(6) Vessel operating expenses include crew costs, provisions, deck and
engine stores, lubricants, insurance, maintenance and repairs. Vessel
operating expenses before pre-delivery expenses exclude one-time pre-
delivery and pre-joining expenses associated with initial crew manning
and supply of stores of Company's vessels upon delivery. Daily Vessel
Operating Expenses are calculated by dividing vessel operating expenses
before pre-delivery expenses by ownership days for the relevant time
periods. We include daily vessel operating expenses, a non-GAAP measure,
as we believe it provides additional meaningful information in
conjunction with vessel operating expenses, the most directly comparable
US GAAP measure, because it assists our management in making decisions
regarding the assessment of our vessels' operational performance. Our
calculation of daily vessel operating expenses may not be comparable to
that reported by other companies. The following table reconciles our
vessel operating expenses to daily vessel operating expenses.
(In thousands of US Dollars, except ownership days and Daily Vessel Operating Expenses)
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Q4 2015 Q4 2014 FY 2015 FY 2014
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Vessel operating expenses 3,722 - 5,639 1,006
Less: Pre-delivery expenses 916 - 1,427 -
Vessel operating expenses before pre-
delivery expenses 2,806 - 4,212 1,006
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Ownership days 560 N/A 776 268
Daily Vessel Operating Expenses 5,011 N/A 5,428 3,754
Subsequent Developments:
Amendments to the Revolving Convertible Promissory Note to the Sponsor
On January 27, 2016 and on March 7, 2016 the Company entered into a third and fourth amendment to the issued unsecured revolving convertible promissory note of September 7, 2015 as amended on December 1, 2015 and December 14, 2015. These amendments have increased the amount of the note to approximately $16.3 million (the "Applicable Limit") and have further modified the amount by which the Applicable Limit is reduced to $2.5 million on September 10, 2017 and each year on the anniversary of that date. As of today, the Company has drawn down the entire amount available under the note.
Reverse Stock Split and Nasdaq Compliance
On January 8, 2016 a 1-for-5 reverse split of the Company's common stock became effective and the common stock began trading on a split-adjusted basis on the NASDAQ Capital Market.
This reduced the number of outstanding shares of the Company's common stock from 97,612,971 shares to approximately 19,522,413 shares, after adjusting for fractional shares. On January 27, 2016, we received a letter from Nasdaq confirming that we had regained compliance with Nasdaq's minimum bid price requirement.
Additional information about the reverse stock split can be found in the Company's proxy statement furnished to the Securities and Exchange Commission on August 7, 2014, a copy of which is available at www.sec.gov.
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
December 31, 2015 and 2014
(In thousands of US Dollars)
2015 2014
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ASSETS
Cash and restricted cash 3,354 2,873
Vessels, net 199,840 -
Other assets 6,158 395
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TOTAL ASSETS 209,352 3,268
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LIABILITIES AND STOCKHOLDERS' EQUITY
Bank debt 177,505 -
Convertible promissory note 134 -
Due to related parties - 105
Other liabilities 8,429 487
Stockholders' equity 23,284 2,676
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 209,352 3,268
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Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Operations
For the three and twelve months ended December 31, 2015 and 2014
(In thousands of US Dollars, except for share and per share data, unless
otherwise stated)
Three months ended Twelve months ended
December 31, December 31,
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2015 2014 2015 2014
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Revenues:
Vessel revenue, net 6,822 - 11,223 2,010
Expenses:
Voyage expenses (4,763) - (7,496) (1,298)
Vessel operating expenses (3,722) - (5,639) (1,006)
Management fees (229) - (336) (122)
General and administrative
expenses (917) (999) (2,874) (3,296)
Depreciation and
amortization (1,561) (3) (1,903) (3)
Gain on restructuring - - - 85,563
Loss on bad debts (30) - (30) (38)
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Operating (loss) income (4,400) (1,002) (7,055) 81,810
Other income (expense):
Interest and finance
costs, net (1,433) (246) (1,859) (1,463)
Other, net (18) (8) (42) 1
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Total other expenses, net: (1,451) (254) (1,901) (1,462)
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Net (loss) income (5,851) (1,256) (8,956) 80,348
========== ========== ========== ==========
Net (loss) income per common
share, basic and diluted (0.31) (0.40) (0.83) 30.06
Weighted average number of
common shares outstanding,
basic and diluted 18,614,657 3,109,159 10,773,404 2,672,950
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an international provider of marine dry bulk shipping services through the ownership and operation of dry bulk vessels. The Company is registered in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong.
The Company currently owns a modern fleet of a total of eight dry bulk carriers, six Capesizes and two Supramaxes, with a combined cargo-carrying capacity of approximately 1,145,553 DWT and an average fleet age of about 7.3 years.
The Company's common stock trades on the Nasdaq Capital Market under the symbol "SHIP."
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy. Words such as "may," "should," "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company's ability to continue as a going concern; the Company's operating or financial results; the Company's liquidity, including its ability to pay amounts that it owes and obtain additional financing in the future to fund capital expenditures, acquisitions and other general corporate activities; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the SEC, including its most recent annual report on Form 20-F.. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For further information please contact: Investor Relations / Media Capital Link, Inc. Paul Lampoutis 230 Park Avenue Suite 1536 New York, NY 10169 Tel: (212) 661-7566 E-mail: [email protected]
Source: Seanergy Maritime Holdings Corp.