ATHENS, GREECE--(Marketwired - Sep 14, 2017) - Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Highlights of 2Q 2017:
- Net Revenues: $18.4 million in 2Q 2017, up 125% compared to $8.2 million in 2Q 2016 and up 38% sequentially from 1Q
2017
- Commencement of the Capesize M/V Lordship's time charter agreement for 18-22 months period that could contribute
more than $10 million of gross revenue
- Delivery of the Capesize M/V Partnership and commencement of its time charter agreement for 12-18 months period
that could generate up to $8.8 million of gross revenue
Subsequent Highlights of 3Q 2017:
- Regained compliance with NASDAQ minimum bid price requirement
Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) announced today its financial results for the quarter and six
months ended June 30, 2017.
For the quarter ended June 30, 2017, the Company generated net revenues of $18.4 million, a 125% increase from the second
quarter of 2016. For the six month period ended June 30, 2017, net revenues were equal to $31.7 million, up 109% from the first
half of 2016. As of June 30, 2017, stockholders' equity was $24.3 million and cash and cash equivalents, including restricted
cash, was $9.2 million.
Stamatis Tsantanis, the Company's Chairman & Chief Executive Officer, stated:
"In the first half of the year, charter rates recovered significantly from the historical lows of 2016. As expected, our low
operating cost structure helped Seanergy achieve positive operating income in the second quarter of 2017 for the first time since
rebuilding our fleet in 2015. This is an important milestone demonstrating our Company's earnings potential during a positive
market trend. It should be noted that, although, during the first half of 2017 Capesize Baltic daily rates have risen by around
146%, compared to the first half of 2016, they have not yet reached mid-cycle levels relative to historical rates and, for that
reason, we are optimistic that rate improvements will continue. Our average Capesize time charter equivalent rate for the second
quarter of 2017 was $12,720 per day, up 139% as compared to $5,315 per day for the second quarter of 2016 and up 54% sequentially
from first quarter of 2017.1
"Furthermore, we are particularly pleased about expanding our fleet at a time of historical market weakness, as the indicative
market values of 5-year old secondhand Capesizes have risen by around 40% compared to the end of 2016. The successful execution
of our business plan puts us in an advantageous position to capitalize on the long term recovery we expect to see in the dry bulk
market.
"In the second quarter, we took delivery of the 2012 Korean built Capesize M/V Partnership, which commenced its 12-18 months'
time charter with a major European utilities company in June at a gross rate of $16,200 per day. Our modern fleet now consists of
nine Capesize vessels and two Supramax vessels with a combined cargo carrying capacity of 1.7 million dwt.
"In June 2017, we terminated our At-The-Market equity offering program as we remain committed to optimizing our financing
activities so as to best serve the interests of our shareholders. Over the past year we have utilized equity offering proceeds to
carry out three vessels' acquisitions and finance the prepayments for the early termination of a credit facility.
"The combined accretion in value we have created for our shareholders from these transactions is more than $29 million, which
is derived from the market value appreciation of the acquisitions and the expected gain due to the early termination and
refinancing of one of our facilities.
"Turning to market fundamentals, we expect a steady rise in freight rates and vessel values driven by the increased demand
from the end users of dry bulk commodities, and the increase in ton-miles resulting from the expansion of volumes along long-haul
trades at a time of a historical reduction in fleet growth.
"We believe Seanergy is well positioned to capitalize on favorable industry trends and we continue to actively pursue
additional vessel acquisitions.
"Lastly, we regained compliance with Nasdaq minimum bid price requirement without resorting in reverse stock splits or other
dilutive actions."
1 Time charter equivalent ("TCE") rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to
net revenues from vessels, the most directly comparable U.S. GAAP measure.
Company Fleet:
| Vessel Name |
Vessel Class |
Capacity
(in dwt) |
Year Built |
Yard |
| Championship |
Capesize |
179,238 |
2011 |
Sungdong |
| Partnership * |
Capesize |
179,213 |
2012 |
Hyundai |
| Knightship |
Capesize |
178,978 |
2010 |
Hyundai |
| Lordship ** |
Capesize |
178,838 |
2010 |
Hyundai |
| Gloriuship |
Capesize |
171,314 |
2004 |
Hyundai |
| Leadership |
Capesize |
171,199 |
2001 |
Koyo - Imabari |
| Geniuship |
Capesize |
170,057 |
2010 |
Sungdong |
| Premiership |
Capesize |
170,024 |
2010 |
Sungdong |
| Squireship |
Capesize |
170,018 |
2010 |
Sungdong |
| Guardianship |
Supramax |
56,884 |
2011 |
CSC Jinling |
| Gladiatorship |
Supramax |
56,819 |
2010 |
CSC Jinling |
| Total / Average |
|
1,682,582 |
8.4 years |
|
| |
|
|
|
|
* The M/V Partnership is chartered to a European utility company for a period of about twelve to about eighteen months at
a daily rate of $16,200. Employment under the agreement commenced in June 2017.
** The M/V Lordship is chartered to a major European charterer for a period of about eighteen to about twenty-two months.
The net daily charter hire is index-linked rate based on the 5 T/C route rate of Baltic Capesize Index. In addition, the charter
contract provides the option to Seanergy to convert at any time and for a period of minimum three to maximum twelve months the
index-linked rate into a fixed rate corresponding to the prevailing value of the respective Capesize FFA. Employment under the
agreement commenced in June 2017.
Fleet Data:
| |
Q2 2017 |
Q2 2016 |
6M 2017 |
6M 2016 |
| Ownership days (1) |
940 |
728 |
1,840 |
1,456 |
| Available days (2) |
940 |
637 |
1,827 |
1,354 |
| Operating days (3) |
828 |
590 |
1,530 |
1,208 |
| Fleet utilization (4) |
88.1% |
81.0% |
83.2% |
83.0% |
| Fleet utilization excluding drydocking & lay-up off hire days (5) |
88.1% |
92.6% |
83.7% |
89.2% |
| TCE rate (6) |
$11,668 |
$5,649 |
$9,846 |
$4,685 |
| Daily Vessel Operating Expenses (7) |
$4,585 |
$4,082 |
$4,605 |
$4,600 |
| |
|
|
| (1) |
|
Ownership days are the total number of calendar 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 the vessels are
off-hire due to drydockings, special and intermediate surveys, or days when the vessels are in lay-up. The shipping
industry uses available days to measure the number of ownership days in a period during which the vessels should be capable
of generating revenues. During the six months ended June 30, 2017, the Company incurred 13 off-hire days for one vessel
drydocking. |
| |
|
|
| (3) |
|
Operating days are the number of available days in a period less the aggregate number of days that the
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
the vessels actually generate revenues. In the quarter ended June 30, 2017, the Company incurred 112 off-hire days between
voyages. In the six months ended June 30, 2017, the Company incurred 295 off-hire days between voyages and 2 off-hire days
due to other unforeseen circumstances. |
| |
|
|
| (4) |
|
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. |
| |
|
|
| (5) |
|
Fleet utilization excluding drydocking & lay-up off-hire days is calculated by dividing the number of the
fleet's operating days during a period by the number of available days during that period. The shipping industry uses fleet
utilization excluding drydocking & lay-up days to measure a Company's efficiency in finding suitable employment for its
vessels and excluding the amount of days that its vessels are off-hire for reasons such as scheduled repairs, vessel
upgrades, drydockings, special or intermediate surveys and lay-ups. |
| |
|
|
| (6) |
|
Time Charter Equivalent (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 US 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. |
| |
|
|
(In thousands of US Dollars, except operating days and TCE rate)
| |
|
Q2 2017 |
|
Q2 2016 |
|
6M 2017 |
|
6M 2016 |
| Net revenues from vessels |
|
18,372 |
|
8,164 |
|
31,694 |
|
15,165 |
| Less: Voyage expenses |
|
8,711 |
|
4,831 |
|
16,629 |
|
9,505 |
| Net operating revenues |
|
9,661 |
|
3,333 |
|
15,065 |
|
5,660 |
| |
|
|
|
|
|
|
|
|
| Operating days |
|
828 |
|
590 |
|
1,530 |
|
1,208 |
| |
|
|
|
|
|
|
|
|
| TCE rate |
|
11,668 |
|
5,649 |
|
9,846 |
|
4,685 |
| |
|
|
| (7) |
|
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. 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. |
| |
|
|
(In thousands of US Dollars, except ownership days and Daily Vessel Operating Expenses)
| |
|
Q2 2017 |
|
Q2 2016 |
|
6M 2017 |
|
6M 2016 |
| Vessel operating expenses |
|
4,613 |
|
2,972 |
|
8,796 |
|
6,698 |
| Less: Pre-delivery expenses |
|
303 |
|
- |
|
322 |
|
- |
| Vessel operating expenses before pre-delivery expenses |
|
4,310 |
|
2,972 |
|
8,474 |
|
6,698 |
| Ownership days |
|
940 |
|
728 |
|
1,840 |
|
1,456 |
| Daily Vessel Operating Expenses |
|
4,585 |
|
4,082 |
|
4,605 |
|
4,600 |
| |
|
|
|
|
|
|
|
|
Second Quarter 2017 Developments:
Time Charter Agreement for M/V Lordship
On March 22, 2017, the Company extended the duration of the time charter contract of the M/V Lordship for a period of up to
twenty-two months with a major European charterer. The charter rate is based on the 5 route average of the Baltic Capesize Index
and the Company has the option, at any time, to convert the index linked rate into a fixed rate corresponding to the prevailing
value of the Capesize forward freight agreement, for a minimum duration of three months to a maximum duration of twelve
months.
The vessel commenced the extended period on June 28, 2017.
Termination of ATM Offering
On June 27, 2017, the Company and Maxim Group LLC mutually terminated the equity distribution agreement dated February 3, 2017
pursuant to which the Company had sold 2,782,136 common shares for an aggregate amount of $2.9 million of gross proceeds.
Time Charter Agreement for M/V Partnership
On May 26, 2017, the Company entered into a time charter contract for M/V Partnership for a period of about twelve to about
eighteen months with a major European energy and utility company at a gross rate of $16,200.
The vessel was delivered to the charterer and commenced her employment under the time charter agreement on June 13, 2017.
Loan Facility with Amsterdam Trade Bank N.V.
On May 24, 2017, the Company entered into an up to $18.0 million senior loan facility with Amsterdam Trade Bank N.V. to fund
part of the acquisition cost of M/V Partnership. As of the date of this press release, the Company has fully drawn down the
facility.
Loan Facility with Jelco
On May 24, 2017, the Company entered into an up to $16.2 million junior loan facility with Jelco to fund part of the
acquisition cost of M/V Partnership. As of the date of this press release, the Company has fully drawn down the facility.
Appointment of New Board Member
On May 4, 2017, the Board of Directors of the Company was expanded to five members and Ioannis (John) Kartsonas was appointed
as an independent member of the Board of Directors to serve as a Class C Director. Mr. Kartsonas has more than 18 years of
experience in finance and commodities trading.
Subsequent Developments:
Regained Compliance with Nasdaq Listing Requirements
During May, we received a notice from Nasdaq indicating that because the closing bid price of the Company's common stock from
April 5, 2017 to May 17, 2017, was below the minimum $1.00 per share bid price we were in breach of Nasdaq Listing Rule
5550(a)(2).
On September 5, 2017, Nasdaq has confirmed that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2)
concerning the minimum bid price of the Company's common stock and that this matter is considered closed.
Conference Call:
As previously announced, today, Thursday, September 14, 2017 at 9:00 a.m. Eastern Time, the Company's management will host a
conference call to present the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from
the US), 0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301 (from outside the US). Please quote "Seanergy".
A replay of the conference call will be available until Thursday, September 21, 2017. The United States replay number is
1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access
code required for the replay is: 2094507#.
Audio Webcast: There will also be a simultaneous live webcast over the Internet, through the Seanergy website (www.seanergymaritime.com). Participants to the live webcast should
register on the website approximately 10 minutes prior to the start of the webcast.
| |
| Seanergy Maritime Holdings Corp. |
| Unaudited Condensed Consolidated Balance Sheets |
| (In thousands of US Dollars) |
| |
| |
|
June 30, 2017 |
|
December 31, 2016 |
| ASSETS |
|
|
|
|
| |
Cash and restricted cash |
|
9,197 |
|
15,908 |
| |
Vessels, net |
|
259,979 |
|
232,109 |
| |
Other assets |
|
11,067 |
|
9,517 |
| TOTAL ASSETS |
|
280,243 |
|
257,534 |
| |
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| |
Bank debt |
|
220,624 |
|
208,798 |
| |
Convertible promissory note |
|
2,045 |
|
1,297 |
| |
Due to related parties |
|
22,080 |
|
5,878 |
| |
Other liabilities |
|
11,175 |
|
10,729 |
| |
Stockholders' equity |
|
24,319 |
|
30,832 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
280,243 |
|
257,534 |
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| Seanergy Maritime Holdings Corp. |
|
| Unaudited Condensed Consolidated Statements of Operations |
|
| (In thousands of US Dollars, except for share and per share data, unless otherwise
stated) |
|
| |
|
| |
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel revenue, net |
|
18,372 |
|
|
8,164 |
|
|
31,694 |
|
|
15,165 |
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Voyage expenses |
|
(8,711 |
) |
|
(4,831 |
) |
|
(16,629 |
) |
|
(9,505 |
) |
| |
Vessel operating expenses |
|
(4,613 |
) |
|
(2,972 |
) |
|
(8,796 |
) |
|
(6,698 |
) |
| |
Management fees |
|
(248 |
) |
|
(222 |
) |
|
(488 |
) |
|
(454 |
) |
| |
General and administrative expenses |
|
(1,230 |
) |
|
(701 |
) |
|
(2,269 |
) |
|
(1,540 |
) |
| |
Depreciation and amortization |
|
(2,759 |
) |
|
(2,216 |
) |
|
(5,382 |
) |
|
(4,436 |
) |
| Operating income / (loss) |
|
811 |
|
|
(2,778 |
) |
|
(1,870 |
) |
|
(7,468 |
) |
| Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest and finance costs |
|
(4,098 |
) |
|
(2,339 |
) |
|
(7,701 |
) |
|
(4,379 |
) |
| |
Other, net |
|
(18 |
) |
|
(15 |
) |
|
(19 |
) |
|
(12 |
) |
| Total other expenses, net: |
|
(4,116 |
) |
|
(2,354 |
) |
|
(7,720 |
) |
|
(4,391 |
) |
| Net loss |
|
(3,305 |
) |
|
(5,132 |
) |
|
(9,590 |
) |
|
(11,859 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per common share, basic and diluted |
|
(0.09 |
) |
|
(0.26 |
) |
|
(0.27 |
) |
|
(0.61 |
) |
| Weighted average number of common shares outstanding, basic and diluted |
|
36,133,155 |
|
|
19,370,412 |
|
|
35,217,339 |
|
|
19,370,412 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an international shipping company that provides marine dry bulk transportation services
through the ownership and operation of dry bulk vessels. The Company currently owns a modern fleet of eleven dry bulk carriers,
consisting of nine Capesizes and two Supramaxes, with a combined cargo-carrying capacity of approximately 1,682,582 dwt and an
average fleet age of about 8.4 years.
The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The
Company's common shares and class A warrants trade on the Nasdaq Capital Market under the symbols "SHIP" and "SHIPW",
respectively.
Please visit our company website at: www.seanergymaritime.com
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. 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, vessel values 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. Except to the extent required by
law, 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.