Seanergy Maritime Holdings Corp. Reports Financial Results for the First Quarter Ended March 31, 2011
News Release
Seanergy Maritime Holdings Corp
May 19, 2011
SEANERGY MARITIME HOLDINGS CORP. REPORTS FINANCIAL RESULTS FOR
THE FIRST QUARTER ENDED MARCH 31, 2011
May 19, 2011 - Athens, Greece - Seanergy Maritime Holdings Corp. (the “Company”)
(NASDAQ: SHIP; SHIP.W) announced today its operating results for the first quarter ended
March 31, 2011.
Financial Highlights:
First Quarter 2011
? Net Revenues of $25.2 million
? EBITDA of $12.9 million
? Net Loss of $1.5 million
Management Discussion:
Dale Ploughman, the Company’s Chairman and Chief Executive Officer, stated:
“Against challenging conditions, with the BDI down 50% from Q1 2010, Seanergy’s strategy
of securing long term agreements with reputable charterers, as well as the fact that we have
been operating a larger fleet this year, effectively insulated our revenues from the
worsening market environment seen during the first quarter of the year. In accordance with
our strategy, we were able to secure long term employment for one of our Panamax vessels
at a higher rate than current market levels, which further enhances our cash flow visibility
over the next year. We believe that our strong period charter coverage for the next two
years can minimize the effect of short term freight rate volatility.
Furthermore, we expect that our current cash position might afford us the opportunity to
engage into accretive acquisitions as the continuing weak market conditions might translate
in lower asset purchase prices.
Over the first quarter of 2011 a number of factors contributed to a difficult operating
environment characterized by low freight rates and heightened uncertainty.
Unexpected events such as the recent storms in Australia and the natural disaster in Japan
have affected shipping activity while the seasonal decrease in trade attributable to the
Chinese New Year celebrations reduced demand and maintained the negative pressure on
freight rates. Furthermore, persistent fiscal worries in developed countries and the monetary
tightening taking place in most major Asian countries are generating increased economic
uncertainty.
Under these circumstances the large number of vessels entering service in 2011 has proved
difficult to absorb while the large outstanding orderbook is creating a supply overhang that
could prevent a sustained rebound in freight rates. It seems that the following months are
going to be characterized by volatile conditions, as there are a multitude of factors that can
affect the market, which are hard to predict. Looking beyond short term uncertainty
however, it is our belief that long term fundamentals in dry bulk shipping remain solid and
that Seanergy is well positioned to continue its growth.”
Christina Anagnostara, the Company’s Chief Financial Officer, stated: “During the
first quarter of 2011 the Company operated 20 fully owned vessels. We are pleased to
report a 38% increase in revenues for the first quarter of 2011 as compared to the same
quarter in 2010. We believe that the end of the first quarter of 2011 finds Seanergy in a
solid balance sheet position. Our cash balance and future contracted revenue stemming
from our charters puts us in a position that we believe will permit us to cover all capital
commitments for the coming year while allowing us to pursue further growth.
The loss experienced in the first quarter is a result of lower average time charter equivalent
(“TCE”) rates earned by our vessels and higher depreciation, amortization and financial
expenses as compared to the first quarter of 2010. The increased size of our fleet compared
to the same period last year nevertheless helped us increase revenues even amidst such
adverse market conditions.
As of the date of this press release, our vessels have secured period employment of 85% for
2011, 40% for 2012 and 19% for 2013.”
First Quarter 2011 Financial Results:
Net Revenues
Net Revenues for the first quarter of 2011 increased to $25.2 million from $18.2 million in
the same quarter in 2010. The increase in revenues, despite earning a lower average TCE
rate, reflects the increased size of our fleet, which resulted in additional operating days.
EBITDA, Operating Income
EBITDA was $12.9 million for the first quarter of 2011 as compared to $10.7 million in the
same quarter in 2010.
Operating income amounted to $2.4 million for the three months ended March 31, 2011, as
compared to an operating income of $5.2 million for the same quarter in 2010.
The EBITDA increase in the first quarter of 2011 was mainly a result of revenue growth,
which was adequate to offset the effects of higher operating expenses.
Please refer to the EBITDA reconciliation section contained in this press release.
Net Loss/Profit
For the first quarter of 2011, Net Loss amounted to $1.5 million or $0.014 per basic and
diluted share, as compared to Net Profit of $0.1 million, or $0.002 per basic and diluted
share, in the same quarter of 2010, based on weighted average common shares
outstanding of 109,723,980 basic and diluted for 2011; 49,347,837 basic and diluted for
2010.
The loss is primarily the result of a 20% decrease in TCE to $14,563 per day in the first
quarter of 2011 from $18,314 per day in the same quarter of 2010, which resulted in lower
operating income.
Operating Cash Flow
In the first quarter of 2011, Seanergy generated $2.6 million of cash from operations, as
opposed to $7.4 million in the first quarter of 2010. The decrease is mainly attributable to
lower net income earned in the current year as well as to the timing of vessels’ dry docking
payments.
Debt Repayment and capital expenditure requirements for 2011
Seanergy ended the first quarter of 2011 with $388.4 million of outstanding debt. This
reflects a reduction of $11.1 million during the quarter, owing to repayment of principal
installments.
Repayment of principal on our debt facilities is expected to reach $42.3 million over the
three last quarters of 2011. In terms of maintenance capital expenditure, we expect to
incur approximately $3.1 million in drydocking costs for the remainder of 2011.
Subsequent Events:
Financial Developments
With respect to our loan agreement with Citibank International Plc, we have requested a
retroactive waiver, and our lender has retroactively waived, pursuant to a fourth
supplemental agreement dated March 31, 2011, our minimum equity ratio requirement as of
December 31, 2010. The supplemental agreement also provides for the temporary reduction
of the minimum equity ratio requirement from 0.3:1.0 to 0.175:1.0 for the period from
December 31, 2010 through and including December 31, 2011 and an adjustment of the
applicable margin to 2% per annum for the period between January 1, 2011 and December
31, 2011.
As of March 31, 2011, the Company did not comply with the financial covenant relating to
the minimum quarterly cash balance requirement Seanergy is obliged to maintain under
the loan agreement with Marfin Egnatia Bank. The Company has requested a waiver and/or
amendments of certain financial and other covenants of the particular loan agreement. The
Company expects that the request will be granted, thus the presentation of the long term
debt in the attached consolidated financial statements assumes that the waiver will be
granted and accordingly all of the Company’s long term debt continues to be classified as
non-current as of March 31, 2011. In case the waiver is not granted, then the Marfin debt
will be required to be classified as current.
Drydocking and Maintenance Schedule
The M/V African Zebra’s scheduled drydocking commenced on January 4, 2011 and was
completed on February 28, 2011. The total estimated cost of the M/V African Zebra’s
drydocking is approximately $1.4 million.
The M/V Davakis G.’s scheduled drydocking commenced on March 18, 2011 and was
completed on April 2, 2011. The total estimated cost of the M/V Davakis G.’s drydocking is
approximately $0.5 million.
The M/V African Oryx’s drydocking commenced on May 14, 2011 and is expected to be
completed by end of May 2011. The total cost of the M/V African Oryx’s drydock is
estimated to be approximately $0.5 million.
Fleet Employment
As of today, the Company has secured under employment 85% of its operating days for
2011, 40% for 2012 and 19% for 2013.
Time Charter Employment
Pursuant to the charter party agreement dated February 18, 2011, the M/V Bremen Max
was chartered with Glencore Grain BV (Rotterdam) for a period of about eleven (11) to
about thirteen (13) months at a gross daily rate of $20,000. The rate includes a 1.25%
brokerage commission payable to each of Safbulk (PTY) LTD and Arrow Chartering and a
charterer’s commission of 3.75%. The vessel’s employment under the time charter
agreement commenced on February 23, 2011.
Subsequent Events:
Vessels under Spot Employment
Pursuant to the charter party agreement dated April 7, 2011, the M/V Davakis G. was
chartered with MUR Shipping Denmark A/S for a time charter trip at a gross daily rate of
$29,250. The rate includes a 1.25% brokerage commission payable to Safbulk (PTY) LTD
and a charterer’s commission of 3.75%. The vessel’s employment under the spot time
charter commenced on April 16, 2011.
Pursuant to the charter party agreement dated April 8, 2011, the M/V Delos Ranger was
chartered with A/C Mansel Ltd. for a time charter trip at a gross daily rate of $17,000. The
rate includes a 1.25% brokerage commission payable to each of Safbulk (PTY) LTD and
Arrow Chartering and a charterer’s commission of 3.75%. The vessel’s employment under
the spot time charter commenced on April 16, 2011.
Fleet Data:
Three Months Ended
March 31, 2011
Three Months Ended
March 31, 2010
Fleet Data
Average number of vessels (1) 20 11
Ownership days (2) 1,800 990
Available days (3) 1,724 984
Operating days (4) 1,678 981
Fleet utilization (5) 93.2% 99.1%
Fleet utilization excluding
drydocking off hire days (6)
97.3% 99.7%
Average Daily Results
TCE rate (7) $14,563 $18,314
Vessel operating expenses (8) $4,776 $4,661
Management fee (9) $424 $609
Total vessel operating
expenses (10)
$5,200 $5,270
(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 quarter ended March
31, 2011, the Company incurred 76 off hire days for vessel scheduled drydocking.
(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) Fleet utilization excluding drydocking 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 off hire 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, or dry
dockings or special or intermediate surveys.
(7) 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.
Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges
and other commissions.
(In thousands of US Dollars, except operating days and daily time charter equivalent rate)
Three Months Ended March 31,
2011 2010
Net revenues from vessels 25,236 18,209
Voyage expenses (800) (243)
Net operating revenues 24,436 17,966
Operating days 1,678 981
Daily time charter equivalent
rate
14,563 18,314
(8) Average daily vessel operating expenses, which include crew costs, provisions, deck and engine
stores, lubricating oil, insurance, maintenance and repairs, are calculated by dividing vessel
operating expenses by ownership days for the relevant time periods:
(In thousands of US Dollars, except ownership days and daily vessel operating expenses)
Three Months Ended March 31,
2011 2010
Operating expenses 8,597 4,614
Ownership days 1,800 990
Daily vessel operating
expenses
4,776 4,661
(9) Daily management fees are calculated by dividing total management fees by ownership days for
the relevant time period.
(10) Total vessel operating expenses (“TVOE”) is a measurement of total expenses associated
with operating the vessels. TVOE is the sum of vessel operating expenses and management
fees. Daily TVOE is calculated by dividing TVOE by fleet ownership days for the relevant time
period.
Fleet Profile and Employment:
Fleet Profile as of May 19, 2011
Vessel Name
Vessel
Class
Capacity Year
Built
Charter
Rate ($)
Charter Expiry
(DWT) (latest)
M/V Bremen Max Panamax 73,503 1993 20,000 Apr. 2012
M/V Hamburg Max (1) Panamax 72,338 1994 21,500 Oct. 2012
M/V Davakis G. Supramax 54,051 2008
Spot
positioning
May. 2011
M/V Delos Ranger Supramax 54,051 2008
Spot
positioning
Jun. 2011
M/V African Zebra (2) Handymax 38,623 1985 7,500 Sep. 2011
M/V African Oryx (2) Handysize 24,110 1997 7,000 Sep. 2011
M/V BET Commander Capesize 149,507 1991 24,000 Dec. 2011
M/V BET Fighter Capesize 173,149 1992 25,000 Sep. 2011
M/V BET Prince Capesize 163,554 1995 25,000 Jan. 2012
M/V BET Scouter Capesize 171,175 1995 26,000 Oct. 2011
M/V BET Intruder Panamax 69,235 1993 15,500 Sep. 2011
M/V Fiesta (3) Handysize 29,519 1997
Floating,
BHSI linked
Nov. 2013
M/V Pacific Fantasy (3) Handysize 29,538 1996
Floating,
BHSI linked
Jan. 2014
M/V Pacific Fighter (3) Handysize 29,538 1998
Floating,
BHSI linked
Nov. 2013
M/V Clipper Freeway (3) Handysize 29,538 1998
Floating,
BHSI linked
Feb. 2014
M/V African Joy (4) Handysize 26,482 1996 14,000 Nov. 2011
M/V African Glory (5) Handysize 24,252 1998 7,000 Nov. 2012
M/V Asian Grace (6) Handysize 20,412 1999 7,000 Sep. 2012
M/V Clipper Glory Handysize 30,570 2007 25,000 Aug. 2012
M/V Clipper Grace Handysize 30,548 2007 25,000 Aug. 2012
Total
1,293,693
(1) Represents profit sharing arrangement at a floor rate of $21,500 per day and a ceiling of
$25,500 per day, with a 50% profit sharing arrangement to apply to any amount in excess of
the ceiling. The spread between floor and ceiling will accrue 100% to Seanergy. The base used
for the calculation of the rate is the Time Charter Average of the Baltic Panamax Index.
(2) Represents floor charter rates excluding a 50% profit share distributed equally between the
Company and the charterer calculated on the adjusted Time Charter Average of the Baltic
Supramax Index (“BSI”).
(3) Time Charter Average of the Baltic Handysize Index increased by 100.63% minus Opex.
(4) The charterer has the option to extend the time charter agreement for an additional 11 to 13
months at the same rate.
(5) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $12,000
per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer
applicable between the $7,000 floor and $12,000 ceiling and, for any amount in excess of the
ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the
rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time
charter agreement with a profit sharing arrangement is an open ended contract with a 6 months
mutual notice following November 2012.
(6) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $11,000
per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer
applicable between the $7,000 floor and $11,000 ceiling and, for any amount in excess of the
ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the
rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time
charter agreement with a profit sharing arrangement is an open ended contract with a 6 months
mutual notice following September 2012.
EBITDA Reconciliation:
Three Months
Ended March 31,
2011
Three Months
Ended March 31,
2010
Net (loss) income attributable to Seanergy
Maritime Holdings
(1,526) 110
Plus: Net income attributable to the
noncontrolling interest
0 1,789
Plus: Interest and finance costs, net
(including interest income)
3,750 2,122
Plus: Income taxes 16 0
Plus: Depreciation and amortization 10,660 6,665
EBITDA 12,900 10,686
Plus: Loss on interest rate swaps 99 1,293
Adjusted EBITDA 12,999 11,979
Three Months
Ended March 31,
2011
Three Months
Ended March 31,
2010
Net cash flow provided by operating
activities
2,565 7,350
Changes in operating assets and liabilities 951 1,932
Fair value of contracts 76 80
Change in fair value of financial
instruments
2,378 (660)
Payments for dry-docking 3,339 0
Amortization and write-off of deferred
charges
(173) (138)
Amortization of stock based compensation (2) 0
Interest and finance costs, net (includes
interest income)
3,750 2,122
Income taxes 16 0
EBITDA 12,900 10,686
Plus: Loss on interest rate swaps 99 1,293
Adjusted EBITDA 12,999 11,979
EBITDA consists of earnings before interest and finance cost, taxes, depreciation and amortization.
Adjusted EBITDA consists of earnings before interest and finance cost, taxes, depreciation and
amortization and gain or losses on interest rate swaps. EBITDA and adjusted EBITDA are not
measurements of financial performance under accounting principles generally accepted in the United
States of America, and do not represent cash flow from operations. EBITDA and adjusted EBITDA are
presented solely as supplemental disclosures because management believes that they are common
measures of operating performance in the shipping industry.
Conference Call Details:
The Company’s management team will host a conference call to discuss the financial
results today, Thursday May 19, 2011 at 10:00 A.M. EDT.
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 May 26, 2011. 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 of the conference call over the Internet,
through the Company’s 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.
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
March 31, 2011 (unaudited) and December 31, 2010
(In thousands of US Dollars, except for share data, unless otherwise stated)
March 31,
2011
(unaudited)
December
31, 2010
ASSETS
Current assets:
Cash and cash equivalents 44,189 53,787
Restricted cash 11,450 10,385
Accounts receivable trade, net 815 999
Due from related parties 70 -
Inventories 1,569 1,459
Other current assets 1,803 1,829
Total current assets 59,896 68,459
Fixed assets:
Vessels, net 589,349 597,372
Office equipment, net 25 29
Total fixed assets 589,374 597,401
Other assets
Goodwill 17,275 17,275
Deferred charges 12,493 13,086
Other non-current assets 180 180
TOTAL ASSETS 679,218 696,401
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt 50,772 53,380
Trade accounts and other payables 1,679 2,340
Due to related parties 2,613 4,025
Accrued expenses 3,045 3,491
Accrued interest 1,209 1,009
Financial instruments 4,253 5,787
Below market acquired time charters 190 266
Deferred revenue – related party 1,041 1,041
Deferred revenue 1,664 1,452
Total current liabilities 66,466 72,791
Long-term debt, net of current portion 337,678 346,168
Financial instruments, net of current portion 1,933 2,777
Total liabilities 406,077 421,736
Commitments and contingencies - -
EQUITY
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none
issued - -
Common stock, $0.0001 par value; 500,000,000 authorized shares as at
March 31, 2011 and December 31, 2010; 109,773,980 and 109,723,980
shares issued and outstanding as at March 31, 2011 and December 31,
2010, respectively 11 11
Additional paid-in capital 279,270 279,268
Accumulated deficit (6,140 ) (4,614 )
Total equity 273,141 274,665
TOTAL LIABILITIES AND EQUITY 679,218 696,401
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Income
For the three months ended March 31, 2011 and 2010
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
Three months ended
March 31,
2011 2010
Revenues:
Vessel revenue - related party 10,380 13,118
Vessel revenue 15,660 5,724
Commissions - related party (386 ) (454 )
Commissions (418 ) (179 )
Vessel revenue, net 25,236
18,209
Expenses:
Direct voyage expenses (727 ) (5 )
Vessel operating expenses (8,597 ) (4,614 )
Voyage expenses - related party (73 ) (238 )
Management fees - related party (619 ) (603 )
Management fees (144 ) -
General and administration expenses (1,862 ) (736 )
General and administration expenses - related party (149 ) (182 )
Amortization of deferred dry-docking costs (2,633 ) (698 )
Depreciation (8,027 ) (5,967 )
Operating income 2,405 5,166
Other income (expense), net:
Interest and finance costs (3,766 ) (2,256 )
Interest income - money market funds 16 134
Loss on interest rate swaps (99 ) (1,293 )
Foreign currency exchange (losses) gain, net (66 ) 148
(3,915 ) (3,267 )
Net (loss) income before taxes (1,510 ) 1,899
Income taxes (16 ) -
Net (loss) income (1,526 ) 1,899
Less: Net income attributable to the noncontrolling interest - 1,789
Net (loss) income attributable to Seanergy Maritime Holdings Corp.
Shareholders
(1,526 ) 110
Net (loss) income per common share
Basic (0.014 ) 0.002
Diluted (0.014 ) 0.002
Weighted average common shares outstanding
Basic 109,723,980 49,347,837
Diluted 109,723,980 49,347,837
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Changes in Equity
For the three months ended March 31, 2011 and 2010
(In thousands of US Dollars, except for share data, unless otherwise stated)
Common stock
# of Shares Par Value
Additional
paid-in
capital
(Accumulated
deficit)
Total Seanergy
shareholders'
equity
Noncontrolling
interest
Total
equity
Balance, December 31, 2009 33,255,170 3 213,232 (4,746 ) 208,489 18,330 226,819
Issuance of common stock 26,945,000 3 28,987 - 28,990 - 28,990
Net income for the three months ended March 31, 2010 - - - 110 110 1,789 1,899
Balance, March 31, 2010 60,200,170 6 242,219 (4,636 ) 237,589 20,119 257,708
Common stock
# of Shares Par Value
Additional
paid-in
capital
(Accumulated
deficit)
Total Seanergy
shareholders'
equity
Noncontrolling
interest
Total
equity
Balance, December 31, 2010 109,723,980 11 279,268 (4,614 ) 274,665 - 274,665
Issuance of non-vested common stock 50,000 - - - - - -
Amortization of stock based compensation - - 2 - 2 - 2
Net loss for the three months ended March 31, 2011 - - - (1,526 ) (1,526 ) - (1,526 )
Balance, March 31, 2011 109,773,980 11 279,270 (6,140 ) 273,141 - 273,141
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Cash Flows
For the three months ended March 31, 2011 and 2010
(All amounts in footnotes in thousands of US Dollars, except for share and per share data)
Three months ended
March 31,
2011 2010
Cash flows from operating activities:
Net (loss) income (1,526 ) 1,899
Adjustments to reconcile net (loss) income to net cash provided by operating
activities:
Depreciation 8,027 5,967
Amortization of deferred finance charges 173 138
Amortization of deferred dry-docking costs 2,633 698
Payments for dry-docking (3,339 ) -
Change in fair value of financial instruments (2,378 ) 660
Amortization of acquired time charters (76 ) (80 )
Amortization of stock based compensation 2 -
Changes in operating assets and liabilities:
(Increase) decrease in operating assets
Due from related parties (70 ) (796 )
Inventories (110 ) 12
Accounts receivable trade, net 183 (188 )
Other current assets 26 (177 )
Other non-current assets - (46 )
Increase (decrease) in operating liabilities
Trade accounts and other payables (660 ) 643
Due to underwriters - (19 )
Accrued expenses 680 (661 )
Due to related parties (1,412 ) -
Accrued interest 200 (851 )
Deferred revenue – related party - 138
Deferred revenue 212 13
Net cash provided by operating activities 2,565 7,350
Cash flows from investing activities:
Additions to office furniture and equipment - (34 )
Net cash used in investing activities - (34 )
Cash flows from financing activities:
Net proceeds from issuance of common stock - 28,990
Repayments of long term debt (11,098 ) (10,500 )
Restricted cash retained (1,065 ) (3,564 )
Net cash (used in) provided by financing activities (12,163 ) 14,926
Net (decrease) increase in cash and cash equivalents (9,598 ) 22,242
Cash and cash equivalents at beginning of period 53,787 63,607
Cash and cash equivalents at end of period 44,189 85,849
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest 2,960 1,692
THE FIRST QUARTER ENDED MARCH 31, 2011
May 19, 2011 - Athens, Greece - Seanergy Maritime Holdings Corp. (the “Company”)
(NASDAQ: SHIP; SHIP.W) announced today its operating results for the first quarter ended
March 31, 2011.
Financial Highlights:
First Quarter 2011
? Net Revenues of $25.2 million
? EBITDA of $12.9 million
? Net Loss of $1.5 million
Management Discussion:
Dale Ploughman, the Company’s Chairman and Chief Executive Officer, stated:
“Against challenging conditions, with the BDI down 50% from Q1 2010, Seanergy’s strategy
of securing long term agreements with reputable charterers, as well as the fact that we have
been operating a larger fleet this year, effectively insulated our revenues from the
worsening market environment seen during the first quarter of the year. In accordance with
our strategy, we were able to secure long term employment for one of our Panamax vessels
at a higher rate than current market levels, which further enhances our cash flow visibility
over the next year. We believe that our strong period charter coverage for the next two
years can minimize the effect of short term freight rate volatility.
Furthermore, we expect that our current cash position might afford us the opportunity to
engage into accretive acquisitions as the continuing weak market conditions might translate
in lower asset purchase prices.
Over the first quarter of 2011 a number of factors contributed to a difficult operating
environment characterized by low freight rates and heightened uncertainty.
Unexpected events such as the recent storms in Australia and the natural disaster in Japan
have affected shipping activity while the seasonal decrease in trade attributable to the
Chinese New Year celebrations reduced demand and maintained the negative pressure on
freight rates. Furthermore, persistent fiscal worries in developed countries and the monetary
tightening taking place in most major Asian countries are generating increased economic
uncertainty.
Under these circumstances the large number of vessels entering service in 2011 has proved
difficult to absorb while the large outstanding orderbook is creating a supply overhang that
could prevent a sustained rebound in freight rates. It seems that the following months are
going to be characterized by volatile conditions, as there are a multitude of factors that can
affect the market, which are hard to predict. Looking beyond short term uncertainty
however, it is our belief that long term fundamentals in dry bulk shipping remain solid and
that Seanergy is well positioned to continue its growth.”
Christina Anagnostara, the Company’s Chief Financial Officer, stated: “During the
first quarter of 2011 the Company operated 20 fully owned vessels. We are pleased to
report a 38% increase in revenues for the first quarter of 2011 as compared to the same
quarter in 2010. We believe that the end of the first quarter of 2011 finds Seanergy in a
solid balance sheet position. Our cash balance and future contracted revenue stemming
from our charters puts us in a position that we believe will permit us to cover all capital
commitments for the coming year while allowing us to pursue further growth.
The loss experienced in the first quarter is a result of lower average time charter equivalent
(“TCE”) rates earned by our vessels and higher depreciation, amortization and financial
expenses as compared to the first quarter of 2010. The increased size of our fleet compared
to the same period last year nevertheless helped us increase revenues even amidst such
adverse market conditions.
As of the date of this press release, our vessels have secured period employment of 85% for
2011, 40% for 2012 and 19% for 2013.”
First Quarter 2011 Financial Results:
Net Revenues
Net Revenues for the first quarter of 2011 increased to $25.2 million from $18.2 million in
the same quarter in 2010. The increase in revenues, despite earning a lower average TCE
rate, reflects the increased size of our fleet, which resulted in additional operating days.
EBITDA, Operating Income
EBITDA was $12.9 million for the first quarter of 2011 as compared to $10.7 million in the
same quarter in 2010.
Operating income amounted to $2.4 million for the three months ended March 31, 2011, as
compared to an operating income of $5.2 million for the same quarter in 2010.
The EBITDA increase in the first quarter of 2011 was mainly a result of revenue growth,
which was adequate to offset the effects of higher operating expenses.
Please refer to the EBITDA reconciliation section contained in this press release.
Net Loss/Profit
For the first quarter of 2011, Net Loss amounted to $1.5 million or $0.014 per basic and
diluted share, as compared to Net Profit of $0.1 million, or $0.002 per basic and diluted
share, in the same quarter of 2010, based on weighted average common shares
outstanding of 109,723,980 basic and diluted for 2011; 49,347,837 basic and diluted for
2010.
The loss is primarily the result of a 20% decrease in TCE to $14,563 per day in the first
quarter of 2011 from $18,314 per day in the same quarter of 2010, which resulted in lower
operating income.
Operating Cash Flow
In the first quarter of 2011, Seanergy generated $2.6 million of cash from operations, as
opposed to $7.4 million in the first quarter of 2010. The decrease is mainly attributable to
lower net income earned in the current year as well as to the timing of vessels’ dry docking
payments.
Debt Repayment and capital expenditure requirements for 2011
Seanergy ended the first quarter of 2011 with $388.4 million of outstanding debt. This
reflects a reduction of $11.1 million during the quarter, owing to repayment of principal
installments.
Repayment of principal on our debt facilities is expected to reach $42.3 million over the
three last quarters of 2011. In terms of maintenance capital expenditure, we expect to
incur approximately $3.1 million in drydocking costs for the remainder of 2011.
Subsequent Events:
Financial Developments
With respect to our loan agreement with Citibank International Plc, we have requested a
retroactive waiver, and our lender has retroactively waived, pursuant to a fourth
supplemental agreement dated March 31, 2011, our minimum equity ratio requirement as of
December 31, 2010. The supplemental agreement also provides for the temporary reduction
of the minimum equity ratio requirement from 0.3:1.0 to 0.175:1.0 for the period from
December 31, 2010 through and including December 31, 2011 and an adjustment of the
applicable margin to 2% per annum for the period between January 1, 2011 and December
31, 2011.
As of March 31, 2011, the Company did not comply with the financial covenant relating to
the minimum quarterly cash balance requirement Seanergy is obliged to maintain under
the loan agreement with Marfin Egnatia Bank. The Company has requested a waiver and/or
amendments of certain financial and other covenants of the particular loan agreement. The
Company expects that the request will be granted, thus the presentation of the long term
debt in the attached consolidated financial statements assumes that the waiver will be
granted and accordingly all of the Company’s long term debt continues to be classified as
non-current as of March 31, 2011. In case the waiver is not granted, then the Marfin debt
will be required to be classified as current.
Drydocking and Maintenance Schedule
The M/V African Zebra’s scheduled drydocking commenced on January 4, 2011 and was
completed on February 28, 2011. The total estimated cost of the M/V African Zebra’s
drydocking is approximately $1.4 million.
The M/V Davakis G.’s scheduled drydocking commenced on March 18, 2011 and was
completed on April 2, 2011. The total estimated cost of the M/V Davakis G.’s drydocking is
approximately $0.5 million.
The M/V African Oryx’s drydocking commenced on May 14, 2011 and is expected to be
completed by end of May 2011. The total cost of the M/V African Oryx’s drydock is
estimated to be approximately $0.5 million.
Fleet Employment
As of today, the Company has secured under employment 85% of its operating days for
2011, 40% for 2012 and 19% for 2013.
Time Charter Employment
Pursuant to the charter party agreement dated February 18, 2011, the M/V Bremen Max
was chartered with Glencore Grain BV (Rotterdam) for a period of about eleven (11) to
about thirteen (13) months at a gross daily rate of $20,000. The rate includes a 1.25%
brokerage commission payable to each of Safbulk (PTY) LTD and Arrow Chartering and a
charterer’s commission of 3.75%. The vessel’s employment under the time charter
agreement commenced on February 23, 2011.
Subsequent Events:
Vessels under Spot Employment
Pursuant to the charter party agreement dated April 7, 2011, the M/V Davakis G. was
chartered with MUR Shipping Denmark A/S for a time charter trip at a gross daily rate of
$29,250. The rate includes a 1.25% brokerage commission payable to Safbulk (PTY) LTD
and a charterer’s commission of 3.75%. The vessel’s employment under the spot time
charter commenced on April 16, 2011.
Pursuant to the charter party agreement dated April 8, 2011, the M/V Delos Ranger was
chartered with A/C Mansel Ltd. for a time charter trip at a gross daily rate of $17,000. The
rate includes a 1.25% brokerage commission payable to each of Safbulk (PTY) LTD and
Arrow Chartering and a charterer’s commission of 3.75%. The vessel’s employment under
the spot time charter commenced on April 16, 2011.
Fleet Data:
Three Months Ended
March 31, 2011
Three Months Ended
March 31, 2010
Fleet Data
Average number of vessels (1) 20 11
Ownership days (2) 1,800 990
Available days (3) 1,724 984
Operating days (4) 1,678 981
Fleet utilization (5) 93.2% 99.1%
Fleet utilization excluding
drydocking off hire days (6)
97.3% 99.7%
Average Daily Results
TCE rate (7) $14,563 $18,314
Vessel operating expenses (8) $4,776 $4,661
Management fee (9) $424 $609
Total vessel operating
expenses (10)
$5,200 $5,270
(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 quarter ended March
31, 2011, the Company incurred 76 off hire days for vessel scheduled drydocking.
(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) Fleet utilization excluding drydocking 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 off hire 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, or dry
dockings or special or intermediate surveys.
(7) 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.
Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges
and other commissions.
(In thousands of US Dollars, except operating days and daily time charter equivalent rate)
Three Months Ended March 31,
2011 2010
Net revenues from vessels 25,236 18,209
Voyage expenses (800) (243)
Net operating revenues 24,436 17,966
Operating days 1,678 981
Daily time charter equivalent
rate
14,563 18,314
(8) Average daily vessel operating expenses, which include crew costs, provisions, deck and engine
stores, lubricating oil, insurance, maintenance and repairs, are calculated by dividing vessel
operating expenses by ownership days for the relevant time periods:
(In thousands of US Dollars, except ownership days and daily vessel operating expenses)
Three Months Ended March 31,
2011 2010
Operating expenses 8,597 4,614
Ownership days 1,800 990
Daily vessel operating
expenses
4,776 4,661
(9) Daily management fees are calculated by dividing total management fees by ownership days for
the relevant time period.
(10) Total vessel operating expenses (“TVOE”) is a measurement of total expenses associated
with operating the vessels. TVOE is the sum of vessel operating expenses and management
fees. Daily TVOE is calculated by dividing TVOE by fleet ownership days for the relevant time
period.
Fleet Profile and Employment:
Fleet Profile as of May 19, 2011
Vessel Name
Vessel
Class
Capacity Year
Built
Charter
Rate ($)
Charter Expiry
(DWT) (latest)
M/V Bremen Max Panamax 73,503 1993 20,000 Apr. 2012
M/V Hamburg Max (1) Panamax 72,338 1994 21,500 Oct. 2012
M/V Davakis G. Supramax 54,051 2008
Spot
positioning
May. 2011
M/V Delos Ranger Supramax 54,051 2008
Spot
positioning
Jun. 2011
M/V African Zebra (2) Handymax 38,623 1985 7,500 Sep. 2011
M/V African Oryx (2) Handysize 24,110 1997 7,000 Sep. 2011
M/V BET Commander Capesize 149,507 1991 24,000 Dec. 2011
M/V BET Fighter Capesize 173,149 1992 25,000 Sep. 2011
M/V BET Prince Capesize 163,554 1995 25,000 Jan. 2012
M/V BET Scouter Capesize 171,175 1995 26,000 Oct. 2011
M/V BET Intruder Panamax 69,235 1993 15,500 Sep. 2011
M/V Fiesta (3) Handysize 29,519 1997
Floating,
BHSI linked
Nov. 2013
M/V Pacific Fantasy (3) Handysize 29,538 1996
Floating,
BHSI linked
Jan. 2014
M/V Pacific Fighter (3) Handysize 29,538 1998
Floating,
BHSI linked
Nov. 2013
M/V Clipper Freeway (3) Handysize 29,538 1998
Floating,
BHSI linked
Feb. 2014
M/V African Joy (4) Handysize 26,482 1996 14,000 Nov. 2011
M/V African Glory (5) Handysize 24,252 1998 7,000 Nov. 2012
M/V Asian Grace (6) Handysize 20,412 1999 7,000 Sep. 2012
M/V Clipper Glory Handysize 30,570 2007 25,000 Aug. 2012
M/V Clipper Grace Handysize 30,548 2007 25,000 Aug. 2012
Total
1,293,693
(1) Represents profit sharing arrangement at a floor rate of $21,500 per day and a ceiling of
$25,500 per day, with a 50% profit sharing arrangement to apply to any amount in excess of
the ceiling. The spread between floor and ceiling will accrue 100% to Seanergy. The base used
for the calculation of the rate is the Time Charter Average of the Baltic Panamax Index.
(2) Represents floor charter rates excluding a 50% profit share distributed equally between the
Company and the charterer calculated on the adjusted Time Charter Average of the Baltic
Supramax Index (“BSI”).
(3) Time Charter Average of the Baltic Handysize Index increased by 100.63% minus Opex.
(4) The charterer has the option to extend the time charter agreement for an additional 11 to 13
months at the same rate.
(5) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $12,000
per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer
applicable between the $7,000 floor and $12,000 ceiling and, for any amount in excess of the
ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the
rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time
charter agreement with a profit sharing arrangement is an open ended contract with a 6 months
mutual notice following November 2012.
(6) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $11,000
per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer
applicable between the $7,000 floor and $11,000 ceiling and, for any amount in excess of the
ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the
rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time
charter agreement with a profit sharing arrangement is an open ended contract with a 6 months
mutual notice following September 2012.
EBITDA Reconciliation:
Three Months
Ended March 31,
2011
Three Months
Ended March 31,
2010
Net (loss) income attributable to Seanergy
Maritime Holdings
(1,526) 110
Plus: Net income attributable to the
noncontrolling interest
0 1,789
Plus: Interest and finance costs, net
(including interest income)
3,750 2,122
Plus: Income taxes 16 0
Plus: Depreciation and amortization 10,660 6,665
EBITDA 12,900 10,686
Plus: Loss on interest rate swaps 99 1,293
Adjusted EBITDA 12,999 11,979
Three Months
Ended March 31,
2011
Three Months
Ended March 31,
2010
Net cash flow provided by operating
activities
2,565 7,350
Changes in operating assets and liabilities 951 1,932
Fair value of contracts 76 80
Change in fair value of financial
instruments
2,378 (660)
Payments for dry-docking 3,339 0
Amortization and write-off of deferred
charges
(173) (138)
Amortization of stock based compensation (2) 0
Interest and finance costs, net (includes
interest income)
3,750 2,122
Income taxes 16 0
EBITDA 12,900 10,686
Plus: Loss on interest rate swaps 99 1,293
Adjusted EBITDA 12,999 11,979
EBITDA consists of earnings before interest and finance cost, taxes, depreciation and amortization.
Adjusted EBITDA consists of earnings before interest and finance cost, taxes, depreciation and
amortization and gain or losses on interest rate swaps. EBITDA and adjusted EBITDA are not
measurements of financial performance under accounting principles generally accepted in the United
States of America, and do not represent cash flow from operations. EBITDA and adjusted EBITDA are
presented solely as supplemental disclosures because management believes that they are common
measures of operating performance in the shipping industry.
Conference Call Details:
The Company’s management team will host a conference call to discuss the financial
results today, Thursday May 19, 2011 at 10:00 A.M. EDT.
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 May 26, 2011. 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 of the conference call over the Internet,
through the Company’s 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.
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
March 31, 2011 (unaudited) and December 31, 2010
(In thousands of US Dollars, except for share data, unless otherwise stated)
March 31,
2011
(unaudited)
December
31, 2010
ASSETS
Current assets:
Cash and cash equivalents 44,189 53,787
Restricted cash 11,450 10,385
Accounts receivable trade, net 815 999
Due from related parties 70 -
Inventories 1,569 1,459
Other current assets 1,803 1,829
Total current assets 59,896 68,459
Fixed assets:
Vessels, net 589,349 597,372
Office equipment, net 25 29
Total fixed assets 589,374 597,401
Other assets
Goodwill 17,275 17,275
Deferred charges 12,493 13,086
Other non-current assets 180 180
TOTAL ASSETS 679,218 696,401
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt 50,772 53,380
Trade accounts and other payables 1,679 2,340
Due to related parties 2,613 4,025
Accrued expenses 3,045 3,491
Accrued interest 1,209 1,009
Financial instruments 4,253 5,787
Below market acquired time charters 190 266
Deferred revenue – related party 1,041 1,041
Deferred revenue 1,664 1,452
Total current liabilities 66,466 72,791
Long-term debt, net of current portion 337,678 346,168
Financial instruments, net of current portion 1,933 2,777
Total liabilities 406,077 421,736
Commitments and contingencies - -
EQUITY
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none
issued - -
Common stock, $0.0001 par value; 500,000,000 authorized shares as at
March 31, 2011 and December 31, 2010; 109,773,980 and 109,723,980
shares issued and outstanding as at March 31, 2011 and December 31,
2010, respectively 11 11
Additional paid-in capital 279,270 279,268
Accumulated deficit (6,140 ) (4,614 )
Total equity 273,141 274,665
TOTAL LIABILITIES AND EQUITY 679,218 696,401
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Income
For the three months ended March 31, 2011 and 2010
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
Three months ended
March 31,
2011 2010
Revenues:
Vessel revenue - related party 10,380 13,118
Vessel revenue 15,660 5,724
Commissions - related party (386 ) (454 )
Commissions (418 ) (179 )
Vessel revenue, net 25,236
18,209
Expenses:
Direct voyage expenses (727 ) (5 )
Vessel operating expenses (8,597 ) (4,614 )
Voyage expenses - related party (73 ) (238 )
Management fees - related party (619 ) (603 )
Management fees (144 ) -
General and administration expenses (1,862 ) (736 )
General and administration expenses - related party (149 ) (182 )
Amortization of deferred dry-docking costs (2,633 ) (698 )
Depreciation (8,027 ) (5,967 )
Operating income 2,405 5,166
Other income (expense), net:
Interest and finance costs (3,766 ) (2,256 )
Interest income - money market funds 16 134
Loss on interest rate swaps (99 ) (1,293 )
Foreign currency exchange (losses) gain, net (66 ) 148
(3,915 ) (3,267 )
Net (loss) income before taxes (1,510 ) 1,899
Income taxes (16 ) -
Net (loss) income (1,526 ) 1,899
Less: Net income attributable to the noncontrolling interest - 1,789
Net (loss) income attributable to Seanergy Maritime Holdings Corp.
Shareholders
(1,526 ) 110
Net (loss) income per common share
Basic (0.014 ) 0.002
Diluted (0.014 ) 0.002
Weighted average common shares outstanding
Basic 109,723,980 49,347,837
Diluted 109,723,980 49,347,837
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Changes in Equity
For the three months ended March 31, 2011 and 2010
(In thousands of US Dollars, except for share data, unless otherwise stated)
Common stock
# of Shares Par Value
Additional
paid-in
capital
(Accumulated
deficit)
Total Seanergy
shareholders'
equity
Noncontrolling
interest
Total
equity
Balance, December 31, 2009 33,255,170 3 213,232 (4,746 ) 208,489 18,330 226,819
Issuance of common stock 26,945,000 3 28,987 - 28,990 - 28,990
Net income for the three months ended March 31, 2010 - - - 110 110 1,789 1,899
Balance, March 31, 2010 60,200,170 6 242,219 (4,636 ) 237,589 20,119 257,708
Common stock
# of Shares Par Value
Additional
paid-in
capital
(Accumulated
deficit)
Total Seanergy
shareholders'
equity
Noncontrolling
interest
Total
equity
Balance, December 31, 2010 109,723,980 11 279,268 (4,614 ) 274,665 - 274,665
Issuance of non-vested common stock 50,000 - - - - - -
Amortization of stock based compensation - - 2 - 2 - 2
Net loss for the three months ended March 31, 2011 - - - (1,526 ) (1,526 ) - (1,526 )
Balance, March 31, 2011 109,773,980 11 279,270 (6,140 ) 273,141 - 273,141
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Cash Flows
For the three months ended March 31, 2011 and 2010
(All amounts in footnotes in thousands of US Dollars, except for share and per share data)
Three months ended
March 31,
2011 2010
Cash flows from operating activities:
Net (loss) income (1,526 ) 1,899
Adjustments to reconcile net (loss) income to net cash provided by operating
activities:
Depreciation 8,027 5,967
Amortization of deferred finance charges 173 138
Amortization of deferred dry-docking costs 2,633 698
Payments for dry-docking (3,339 ) -
Change in fair value of financial instruments (2,378 ) 660
Amortization of acquired time charters (76 ) (80 )
Amortization of stock based compensation 2 -
Changes in operating assets and liabilities:
(Increase) decrease in operating assets
Due from related parties (70 ) (796 )
Inventories (110 ) 12
Accounts receivable trade, net 183 (188 )
Other current assets 26 (177 )
Other non-current assets - (46 )
Increase (decrease) in operating liabilities
Trade accounts and other payables (660 ) 643
Due to underwriters - (19 )
Accrued expenses 680 (661 )
Due to related parties (1,412 ) -
Accrued interest 200 (851 )
Deferred revenue – related party - 138
Deferred revenue 212 13
Net cash provided by operating activities 2,565 7,350
Cash flows from investing activities:
Additions to office furniture and equipment - (34 )
Net cash used in investing activities - (34 )
Cash flows from financing activities:
Net proceeds from issuance of common stock - 28,990
Repayments of long term debt (11,098 ) (10,500 )
Restricted cash retained (1,065 ) (3,564 )
Net cash (used in) provided by financing activities (12,163 ) 14,926
Net (decrease) increase in cash and cash equivalents (9,598 ) 22,242
Cash and cash equivalents at beginning of period 53,787 63,607
Cash and cash equivalents at end of period 44,189 85,849
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest 2,960 1,692