ATHENS, GREECE, Nov. 5, 2009 (Marketwire) --
ATHENS, GREECE -- (Marketwire) -- 11/05/09 -- Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) (NASDAQ: SHIP.W) announced today its operating results for the third quarter and nine month period ended September 30, 2009.
Third Quarter 2009 Financial Highlights:
-- Net Revenues of $22.4 million.
-- EBITDA of $23.1 million for the three months ended September 30, 2009.
Please refer to a subsequent section of the press release for a
reconciliation of EBITDA to net income.
-- Net Income of $14 million, or $0.57 per basic share and $0.46 per
diluted share, based on weighted average common shares outstanding of
24,580,378 basic, and 30,386,931 diluted.
-- Fleet utilization of 92.2%.
Following the acquisition of BET in August 2009, the Company operates a
fleet of 11 vessels with a total capacity of 1,043,296 dwt.
Nine Months 2009 Financial Highlights:
-- Net Revenues of $70.7 million.
-- EBITDA of $60.7 million for the nine months ended September 30, 2009.
Please refer to a subsequent section of this press release for a
reconciliation of EBITDA to net income.
-- Net Income of $33.3 million, or $1.44 per basic share and $1.13 per
diluted share, based on weighted average common shares outstanding of
23,109,073 basic, and 29,420,518 diluted.
-- Fleet utilization of 87.4%.
Dale Ploughman, the Company's Chief Executive Officer, stated: "Despite the continued market volatility, we are pleased to report strong results for the third quarter of 2009, our fourth consecutive profitable quarter since the completion of our business combination in August 2008. These results reflect our strong cash flow, the high fleet utilization and our operational efficiency on the cost side.
"In the third quarter of 2009, we doubled our controlled fleet with the acquisition of BET, which was achieved with minimal cash outlay and without sacrificing our strong balance sheet. In addition, we reinforced our capital structure with the conversion of the $28.25 million promissory note issued in our business combination into common stock, which enhances our ability to pursue additional accretive fleet expansion taking advantage of opportunities that may come up in today's market conditions.
"We expect the dry bulk market to continue to experience volatility for the remainder of 2009 and in 2010. Stimulus packages passed by major world economies helped revive global trade growth from its collapse at the beginning of 2009. Despite the challenges facing major world economies in the U.S. and Europe, which appear to be recovering at a slower pace, we believe that demand for dry bulk commodities from the developing markets, especially China and India, will continue as a result of domestic infrastructure development in those countries. The significant orderbook remains a concern, but in the first nine months of 2009 the slippage between scheduled and actual deliveries of newbuildings exceeded 35%. We believe that a continuation of this trend, coupled with increased scrapping, should have a positive impact on fleet supply, which, however, is difficult to quantify. Therefore, we expect freight rates to remain volatile, continuing to put pressure on asset values which, particularly in respect to the smaller units, are too high in relation to the freight market. With our experienced management, strong balance sheet, high liquidity and significant charter coverage of 76% for 2010, we believe that Seanergy is well positioned to take advantage of opportunities to expand its fleet, further enhancing shareholder value for the longer term."
Christina Anagnostara, the Company's Chief Financial Officer, stated: "Following the acquisition of BET, we operate a fleet with a total capacity of 1,043,296 dwt, which represents a 229% increase as compared to the previous quarter. The acquisition is immediately earnings accretive, improving our margins and cash flow, based on the charters currently in place for the vessels acquired. We have time charter agreements for nine of our 11 vessels, providing a stable base of revenue and cash flow. Under two of these charters, we have also negotiated to receive 50% of adjusted profits in addition to the fixed chartered rate, which provides the Company the ability to benefit from an improving future rate environment. We are pleased to deliver strong results with an average TCE rate of $42,127 for the nine months ended September 30, 2009. Our net income margin was approximately 45% of TCE and our free cash flow margin was approximately 65% of TCE.
"Our cash reserves were $64 million as of September 30, 2009, reflecting the $36.4 million in cash from operations we generated during the period. Our cash reserves enable us to meet scheduled debt repayments and capital expenditures. Our net debt to book capitalization stands at 52%, a moderate figure for our industry.
"To date we have completed the dry dockings of the African Zebra, Hamburg Max and BET Commander. We have no additional scheduled dry dockings this year."
Conference Call Details:
The Company's management team will host a conference call to discuss the financial results tomorrow, Friday, November 6, 2009 at 9:00 A.M. EST.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301 (from outside the US). Please quote "Seanergy."
A replay of the conference call will be available until November 13, 2009. The United States replay number is 1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access code required for the replay is: 2094507#.
Slides and Audio Webcast:
There will also be a simultaneous live webcast over the Internet, through the Seanergy website (www.seanergymaritime.com). Participants desiring to view the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Fleet Profile as of November 5, 2009
Time
Charter
Vessel Capacity Expiry
Vessel Name Class (DWT) Year Built TC Rate($) (latest)
---------- ---------- ---------- ---------- ----------
M/V Bremen Max Panamax 73,503 1993 15,500 Aug. 2010
---------- ---------- ---------- ---------- ----------
M/V Hamburg Max Panamax 72,338 1994 15,500 Sept. 2010
---------- ---------- ---------- ---------- ----------
M/V Davakis G. Supramax 54,051 2008 Spot Spot
---------- ---------- ---------- ---------- ----------
M/V Delos Ranger Supramax 54,051 2008 Spot Spot
---------- ---------- ---------- ---------- ----------
M/V African Zebra (1) Handysize 38,623 1985 7,500 Aug. 2011
---------- ---------- ---------- ---------- ----------
M/V African Oryx (1) Handysize 24,110 1997 7,000 Aug. 2011
---------- ---------- ---------- ---------- ----------
M/V BET Commander Capesize 149,507 1991 24,000 Dec. 2011
---------- ---------- ---------- ---------- ----------
M/V BET Fighter Capesize 173,149 1992 25,000 Sept. 2011
---------- ---------- ---------- ---------- ----------
M/V BET Prince (2) Capesize 163,554 1995 23,000 Nov. 2009
---------- ---------- ---------- ---------- ----------
M/V BET Scouter Capesize 171,175 1995 26,000 Oct. 2011
---------- ---------- ---------- ---------- ----------
M/V BET Intruder Panamax 69,235 1993 15,500 Sept. 2011
---------- ---------- ---------- ---------- ----------
Total/Average 1,043,296 14 yrs
(1) Represents gross floor charter rates excluding a 50% adjusted profit share distributed equally between owners and charterers calculated on the average Time Charter Rates quoted for all routes on the Baltic Supramax Index for a period of twenty two (22) to twenty five (25) months.
(2) Under time charter with South African Marine Corporation S.A commencing upon the expiration of the existing time charter at a daily charter rate of $25,000, through January 2012.
Fleet Data:
We commenced operations on August 28, 2008; therefore, comparative information for the first nine months of 2008 and the three months ended September 30, 2008 is not available.
Nine Months Three Months
Ended Ended
September 30, September 30,
2009 2009
------------- -------------
Fleet Data:
------------- -------------
Average number of vessels (1) 6.9 8.7
------------- -------------
Ownership days (2) 1,883 797
------------- -------------
Available days (3) 1,654 739
------------- -------------
Operating days (4) 1,646 735
------------- -------------
Fleet utilization (5) 87.4% 92.2%
------------- -------------
Average Daily Results:
------------- -------------
TCE rate (6) 42,127 30,052
------------- -------------
Vessel operating expenses (7) 5,181 4,937
------------- -------------
Management fee (8) 572 580
------------- -------------
Total vessel operating expenses (9) 5,753 5,517
------------- -------------
(1) Average number of vessels is the number of vessels that constituted the Company's fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company's fleet during the relevant period divided by the number of calendar days in the relevant period.
(2) 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.
(3) 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 nine months ended September 30, 2009, the Company incurred 229 off hire days for vessel scheduled dry docking. During the three months ended September 30, 2009, the Company incurred 58 off hire days for vessel scheduled dry docking.
(4) Operating days are the number of available days in a period less the aggregate number of days that vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
(5) 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.
(6) Time charter equivalent or TCE rates are defined as our net revenues less voyage expenses during a period divided by the number of our operating days during the period, which is consistent with industry standards.
