Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2012

News Release Seanergy Maritime Holdings Corp September 24, 2012

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September, 20 2012 - Athens, Greece - Seanergy Maritime Holdings Corp.
(the
“Company”) (NASDAQ: SHIP) announced today its operating results
for the second quarter
and six months ended June 30, 2012.
Financial Highlights:
Second Quarter 2012
 Net Revenues of $18.1 million.
 Adjusted EBITDA of $5.4 million, which excludes non-cash losses of
$13.2 million
incurred on the sale of a vessel and $11.8 million impairment
losses of a vessel.
 Adjusted Net Loss of $3.3 million, which excludes non-cash losses
of $13.2 million
incurred on the sale of a vessel and $11.8 million impairment
losses of a vessel.
Six Months 2012
 Net Revenues of $35.6 million.
 Adjusted EBITDA of $10.3 million, which excludes non-cash losses of
$15.6 million
incurred on the sale of two vessels and $11.8 million impairment
losses of a vessel.
 Adjusted Net Loss of $7.4 million, which excludes non-cash losses
of $15.6 million
incurred on the sale of two vessels and $11.8 million impairment
losses of a vessel.
For more information we refer you to the EBITDA and adjusted
EBITDA reconciliation section
contained in this press release.
Management Discussion:
Dale Ploughman, the Company’s Chairman and Chief Executive
Officer, stated:
“Over the second quarter and first half of the year, Seanergy’s
financial results were
affected by the prevailing market weakness, as more vessels were
employed under both
short term contracts and index linked agreements in the current
year as compared to 2011.
So far in 2012, Seanergy has sold three of its oldest vessels for
a total gross consideration
of about $25.3 million. The proceeds have been used to repay debt
outstanding under the
Marfin facility and Citibank syndicate facility. We expect this to
reduce our interest and
finance expenses and the cash outflows associated with future dry
docking surveys, as well
as the average daily operating expenses incurred by our fleet.
2
During the first half of 2012 the dry bulk market was particularly
unfavorable. Compared to
last year, rates for all vessel classes fell across the board and
the BDI averaged 31% lower
than in the same period of 2011. Market weakness caused by the
oversupply of vessel
tonnage was largely expected, while the economic uncertainty
surrounding the
developments, or rather, the lack thereof in the Eurozone crisis
was the unexpected factor
preventing a meaningful and sustained rise in charter rates over
the second quarter of
2012, by dampening expectations about future growth in dry bulk
demand.
Looking forward, we believe a drop in demand growth is likely to
be prevented, as central
banks have openly expressed their intention to support economic
growth by easing
monetary conditions and we expect that most governments would also
have an interest to
take proactive measures if economic conditions start to
deteriorate. Moreover, China,
whether through the government or private sector, is generally
expected to continue
approving major investments in steel-intensive projects that are
likely to support demand
for more iron ore imports. Lastly, demand for the transportation
of thermal coal remains
strong and the shifting dynamics of world trade in many bulk
commodities point to increases
in ton-mile demand.
The orderbook for dry bulk deliveries continues to shrink as the
year progresses, and it is
expected that the difficulty in obtaining finance, along with the
bad market conditions will
result in continued weakness in new-building ordering for the rest
of this year.”
Christina Anagnostara, the Company’s Chief Financial Officer,
stated: “Over the
second quarter of 2012 Seanergy’s revenue fell by 35% when
compared to the same
quarter of 2011. For the six month period ended June 30, 2012 the
corresponding decline in
revenues was 33%. Furthermore, Seanergy reported a net loss of
$28.4 million for the
second quarter of 2012, compared to a profit of $0.6 million in
the second quarter of 2011.
The financial result for second quarter of 2012 includes $13.2
million of non-cash losses
stemming from the sale of the BET Scouter in June, as well as an
$11.8 million non-cash
loss from the impairment of BET Fighter. Excluding these, net
losses would have amounted
to $3.3 million. The deterioration in performance during the
second quarter of 2012 was
mainly a result of a 43% decrease in the average Time Charter
Equivalent (“TCE”) rate
earned by our vessels, from $15,404 to $8,763, as earnings of
vessels employed under
floating rate contracts and on short term charter parties
reflected the weak spot market
conditions. It is also worth noting that the sales of the African
Zebra and the BET Scouter in
2012 have resulted in a reduction in the average number of vessels
owned during the
second quarter to 18.8 from 20 in the second quarter of 2011.
In terms of our effort to limit expenses so as to improve our
operating performance,
quarterly daily average vessel operating expenses were reduced by
11%, while daily general
and administrative expenses per vessel have been reduced by 62%,
compared to the second
quarter of 2011.
As of June 30, 2012 our outstanding debt was $296.2 million and
our cash reserves
amounted to $17.7 million.
As a result of prolonged challenging market conditions, the
Company is no longer in
compliance with some financial covenants. The Company has entered
into discussions with
its lenders to develop a realistic financial plan that will
improve liquidity and operating
flexibility while maintaining a sustainable capital structure. The
Company has appointed
Houlihan Lokey and Axia Ventures Group as its financial advisors
to assist with this process.”
3
Second Quarter 2012 Financial Results:
Net Revenues
Net Revenues in the second quarter of 2012 decreased to $18.1
million from $27.8 million in
the same quarter in 2011, a reduction of 35%. Reduced net revenue
was a result of the
pronounced dry-bulk market weakness, as the average of the BDI
over 2Q 2012 fell by 26%
compared to the already low levels seen in the second quarter of
2011. Furthermore,
Seanergy completed the sale of the African Zebra in the first
quarter of 2012, as well as the
sale of the BET Scouter in June 2012. This resulted in less
operating days for our fleet
during the quarter, as an average of 18.8 vessels were owned,
compared to 20 in the
corresponding quarter of 2011.
EBITDA, Adjusted EBITDA
Excluding $13.2 million of non-cash losses resulting from the BET
Scouter sale and $11.8
million of non-cash loss from the impairment of BET Fighter,
adjusted EBITDA was $5.4
million for the second quarter of 2012, as compared to $13.6
million in 2011. Including the
aforementioned non-cash items, we recorded negative EBITDA of
$19.6 million for the
quarter ended June 30, 2012.
For more information we refer you to the EBITDA and adjusted
EBITDA reconciliation section
contained in this press release.
Net Loss
For the second quarter of 2012, Net Loss amounted to $28.4 million
or $2.37 loss per basic
and diluted share, as compared to a Net Profit of $0.65 million or
$0.09 profit per basic
and diluted share in the same quarter of 2011, based on weighted
average common shares
outstanding of 11,957,064 basic and diluted for 2012; 7,314,930
basic and diluted for
2011, on a reverse split adjusted
basis.
Debt Repayment and capital expenditure requirements for
2012
Seanergy ended the second quarter of 2012 with $296.2 million of
outstanding debt. This
reflects the repayment of $50.2 million of debt principal during
the six month period ended
June 30, 2012.
Assuming no changes, scheduled repayment of debt principal is
expected to reach $14.2
million over the next two quarters of 2012. In terms of
maintenance capital expenditure,
we expect to incur approximately $0.5 million in drydocking costs
for the remainder of
2012.
Six Months Ended June 30, 2012 Financial
Results:
Net Revenues
Net Revenues for the first half of 2012 decreased to $35.6 million
from $53 million in the
same period in 2011. The decrease in revenue is due to the reduced
size of our fleet, which
resulted in 5% less operating days and the market-induced weakness
in the daily rates
earned by our vessels.
EBITDA, Operating Income
Excluding non-cash losses resulting from the African Zebra and BET
Scouter sales, as well as
the non-cash impairment loss of BET Fighter, adjusted EBITDA was
$10.3 million for the first
half of 2012, as compared to $26.5 million in 2011. Including
non-cash losses of $27.3
4
million, we recorded negative EBITDA of $17.1 million for the six
month period ended June
30, 2012.
Operating loss amounted to $27.8 million for the six months ended
June 30, 2012, as
compared to an operating income of $7.1 million for the same
period in 2011.
As mentioned above, the decreases in EBITDA and Operating Income
compared to the first
half of 2011 were a result of lower revenue due to the smaller
size of the fleet and the
weakness in the shipping market, as reflected by a 31% reduction
in the BDI from the same
period of 2011.
Please refer to the EBITDA reconciliation section contained in
this press release.
Net Loss
For the first six months of 2012, Net Loss was $34.7 million or
$2.92 loss per basic and
diluted share, as compared to a Net Loss of $0.88 million, or
$0.12 loss per basic and
diluted share, in the same period of 2011, based on weighted
average common shares
outstanding of 11,880,499 basic and diluted for 2012; 7,314,930
basic and diluted for
2011 on a reverse split-adjusted basis.
Second Quarter Developments:
Receipt of NASDAQ notice
Seanergy received a written notification by NASDAQ, dated June 29,
2012 indicating that
because the market value of publicly held shares of the Company’s
common stock for 30
consecutive business days from May 16, 2012 through June 28, 2012
was below the
minimum listing requirement of $5 million for the continued
listing on the NASDAQ Global
Market, the company is not in compliance with NASDAQ listing rule
5450 (b)(1)(c). The
applicable grace period to regain compliance is 180 days from the
receipt of the notice. The
company intends to monitor the market value of the publicly held
shares of the Company’s
common stock through December 26, 2012 and is considering its
options for regaining
compliance with the requirement.
Fleet Employment
The M/V Clipper Glory, a 30,570 dwt Handysize dry bulk carrier
built in 2007, has entered
into a time charter, for a period of about eleven to about
thirteen months. The gross
charter rate under the new agreement is $7,000 per day for the
initial 60 days of the term
and following this period the gross rate is linked to the adjusted
Time Charter Average of
the Baltic Handysize Index. The charter commenced at the end of
June 2012.
As of the date of this release, the Company has secured employment
for 84% of its
ownership days for 2012 and 32% for 2013.
Impairment of vessel
The Company entered into a memorandum of agreement (MOA) in June
2012 for the sale of
the vessel BET Fighter. The vessel had an additional ten years of
estimated useful life prior
to the sale. The reduction in BET Fighter’s estimated useful life
resulted in an impairment
loss of $11.8 million.
Sale of the BET Scouter
On June 12, 2012 Seanergy sold the BET Scouter, a 172,173 DWT
capesize vessel built in
1995. Gross proceeds amounted to $12.1 million and were used to
repay debt outstanding
under the Citibank syndicate facility. The sale resulted in a book
loss of $13.2 million.
5
Drydocking and Maintenance
The scheduled survey for the Hamburg Max took place from May 11,
2012 to June 4, 2012
at a cost of approximately $0.5 million.
Subsequent Developments:
The Appointment of New Chief Executive
Officer
Effective as of October 1, 2012, Stamatis Tsantanis will succeed
Dale Ploughman as the
Chief Executive Officer of the Company. Mr. Tsantanis has also
been appointed to the
Board of Directors. Mr. Ploughman will continue to serve as the
Chairman of the Board and
as a Director of the Company.
Stamatis Tsantanis brings more than 14 years of experience in
shipping and finance and
held senior management positions in prominent shipping companies.
He served as Group
Chief Financial Officer of Target Marine S.A. from September 2008,
responsible for its
corporate and financial strategy. Mr. Tsantanis previously served
as the Chief Financial
Officer and as a Director of TOP Ships Inc. from its initial
public offering and listing on
Nasdaq in 2004 until September 2008. Prior to that, he was an
investment banker at Alpha
Finance, a member of the Alpha Bank Group, with active role in a
number of shipping
corporate finance transactions. Mr. Tsantanis holds a Masters
degree in Shipping Trade and
Finance from the City University Business School in London, and a
Bachelors degree in
Shipping Economics from the University of
Piraeus.
2012 Annual General Meeting
The Company announced on September 6th, 2012 the results of its
annual meeting of its
shareholders held on Wednesday, September 5, 2012 at the Company's
executive offices. At
the meeting the following proposals were approved and adopted: (1)
the election of Mr.
George Tsimpis and Mr. Dimitris Anagnostopoulos, as Class C
Directors to serve until the
2015 Annual Meeting of Shareholders and 2) the appointment of
Ernst & Young (Hellas)
Certified Auditors Accountants S.A. as the Company's Independent
Registered Public
Accounting Firm for the Fiscal Year ending December 31, 2012 were
approved and adopted.
Dry-docking Surveys
The scheduled survey of the Asian Grace commenced on August 22,
2012 and was
completed on September 14, 2012. The total cost will be
approximately $0.6 million.
Financial Developments
As of June 30, 2012 the Company’s subsidiary, Maritime Capital
Shipping Limited (“MCS”),
did not comply with the covenant relating to the market value of
the fleet (Security Value
to Security Requirement covenant) under the DVB facility. The
Company is in discussions
with the bank to request waiver for the breach or amendment of the
facility. The Company
expects that the waiver/amendment will be granted by the bank,
thus the presentation of
the DVB long term debt in the attached unaudited condensed
consolidated financial
statements assumes that the waiver will be granted and accordingly
the Company’s long
term debt continues to be classified as non-current as of June 30,
2012. If the waiver is
not granted, then the full amount drawn under the facility will be
classified as current,
reflecting the lenders’ ability to call the debt at any time at
their option.
The Company continues to classify the Citibank syndicate long term
debt as non-current as
of June 30, 2012. If the Company is not in compliance with the
minimum Liquidity Funds
requirement, minimum Equity Ratio and/or Security Value to
Security Requirement
6
covenants after January 1, 2013, and the Company has not extended
the existing waiver,
the Citibank syndicate will be re-classified as a current
liability in full.
Together with the Company’s appointed advisors, we have engaged in
a constructive
dialogue with our lenders aimed at developing and implementing a
realistic plan for
improving the Company's liquidity and operating flexibility. This
plan is focused on
developing a capital structure that allows us to manage today's
difficult market conditions
and prosper in the long term
The Company is seeking waivers from its lenders related to various
restrictive covenants,
amendment of debt profile and maturities and an agreement that
they will forbear from
exercising remedies under their respective debt arrangements.
Although the Company is optimistic that it will reach an agreement
with its lenders on the
short-term waivers of defaults and on the terms of the
restructuring of the Company's
indebtedness, no assurances can be provided that these agreements
will be concluded, in
which case the Lenders could exercise their
remedies.
Sale of the BET Fighter
On July 16, 2012 Seanergy sold the BET Fighter, a 173,149 DWT
Capesize vessel built in
1992. Gross proceeds amounted to $9.1 million and were used to
repay debt. No gain or
loss resulted from the sale.
7
Fleet Data:
Three Months
Ended June 30,
2012
Three Months
Ended June 30,
2011
Six Months
Ended June 30,
2012
Six Months
Ended June 30,
2011
Fleet Data
Average number of
vessels (1) 18.8 20.0 19.1 20.0
Ownership days (2) 1,711 1,820 3,481 3,620
Available days (3) 1,685 1,792 3,442 3,516
Operating days (4) 1,614 1,741 3,240 3,419
Fleet utilization (5) 94.3% 95.7% 93.1% 94.4%
Fleet utilization excluding
drydocking off-hire days
(6)
95.8% 97.2% 94.1% 97.2%
Average Daily Results
TCE rate (7) $8,763 $15,404 $9,156 $14,991
Vessel operating
expenses (8) $4,065 $4,557 $4,389 $4,666
Management fee (9) $336 $446 $336 $435
Total vessel operating
expenses (10) $4,401 $5,003 $4,725
$5,101
(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 June
30, 2012, the Company incurred 26 off-hire days for vessel
scheduled drydocking. During the
six month period ended June 30, 2012, the Company incurred 39
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 for 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.
8
(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 June 30, Six Months Ended June 30,
2012 2011 2012 2011
Net revenues from vessels 18,142 27,759 35,556 52,995
Voyage expenses 3,998 940 5,890 1,740
Net operating revenues 14,144 26,819 29,666 51,255
Operating days 1,614 1,741 3,240 3,419
Daily time charter equivalent
rate 8,763 15,404 9,156 14,991
(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 June 30, Six Months Ended June 30,
2012 2011 2012 2011
Operating expenses 6,956 8,294 15,277 16,891
Ownership days 1,711 1,820 3,481 3,620
Daily vessel operating
expenses 4,065 4,557 4,389 4,666
(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.
9
Fleet Profile and Employment:
Fleet Profile as of September 20, 2012
Vessel Name Vessel
Class
Capacity Year
Built
Charter
Rate ($)
Charter Expiry
(DWT) (latest)
M/V Bremen Max Panamax 73,503 1993 Spot
positioning
Oct. 2012
M/V Hamburg Max Panamax 73,498 1994 Spot
positioning
Oct. 2012
M/V Davakis G. Supramax 54,051 2008 Spot
positioning Oct. 2012
M/V Delos Ranger Supramax 54,057 2008 Spot
positioning Oct. 2012
M/V African Oryx (1) Handysize 24,112 1997 7,000 Jun. 2013
M/V BET Commander Capesize 149,507 1991 Spot
positioning Oct. 2012
M/V BET Prince (2) Capesize 163,554 1995 Floating, BCI
linked Dec. 2012
M/V BET Intruder Panamax 69,235 1993 Spot
Positioning -
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 Jan. 2014
M/V African Joy (4) Handysize 26,482 1996 Floating,
BHSI linked Feb. 2013
M/V African Glory (5) Handysize 24,252 1998 7,000 May. 2013
M/V Asian Grace (6) Handysize 20,412 1999 7,000 Mar. 2013
M/V Clipper Glory Handysize 30,570 2007 BHSI linked
(7) Jul. 2013
M/V Clipper Grace Handysize 30,548 2007 Spot
positioning Oct. 2012
Total 911,914
(1) Represents floor charter rate 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”).
(2) Daily rate based on adjusted Time Charter Average of the Baltic
Capesize Index. Seanergy has
the option of converting the floating rate into a fixed rate at
any time during the charter, after
mutual agreement with the charterers.
(3) Charter rate is based on Time Charter Average of the Baltic
Handysize Index increased by
100.63% minus operating expenses for the
vessel.
10
(4) Charter rate is based on the adjusted time charter average of the
Baltic Handysize Index.
(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 may be
terminated by either party with 6
months’ 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 may be
terminated by either party with 6
months’ notice following September 2012.
(7) $7,000 for the first 60 days of employment. A daily rate linked to
the adjusted BHSI for the rest
of the employment period.
11
EBITDA Reconciliation:
Three Months
Ended June 30,
2012
Three Months
Ended June
30, 2011
Six Months
Ended June 30,
2012
Six Months
Ended June
30, 2011
Net income / (loss) (28,354) 648 (34,722) (878)
Plus: Interest and finance
costs, net (including interest
income)
3,334 3,348 6,701 7,098
Plus: Income taxes 24 28 29 44
Plus: Depreciation and
amortization 5,398 9,535 10,941 20,195
EBITDA (19,598) 13,559 (17,051) 26,459
Plus: Loss on sale of vessels 13,222 - 15,555 -
Plus: Impairment loss for
vessel 11,785 - 11,785 -
Adjusted EBITDA 5,409 13,559 10,289
26,459
Three Months
Ended June 30,
2012
Three Months
Ended June
30, 2011
Six Months
Ended June 30,
2012
Six Months
Ended June
30, 2011
Net cash flow provided by
operating activities 5,967 4,910 4,342 7,475
Loss on sale of vessels (13,222) - (15,555) -
Impairment of vessels (11,785) - (11,785) -
Changes in operating assets
and liabilities (4,410) 4,479 (3,285) 5,430
Fair value of contracts - 75 - 151
Change in fair value of
financial instruments 263 (299) 1,768 2,079
Amortization of stock-based
compensation (3) (4) (7) (6)
Payments for dry-docking 337 1,523 988 4,862
Amortization and write-off of
deferred charges (103) (501) (247) (674)
Interest and finance costs,
net (includes interest income) 3,334 3,348 6,701 7,098
Income taxes 24 28 29 44
EBITDA (19,598) 13,559 (17,051) 26,459
Plus: Loss on sale of vessels 13,222 - 15,555 -
Plus: Impairment loss for
vessel 11,785 - 11,785 -
Adjusted EBITDA 5,409 13,559 10,289
26,459
(In thousands of US Dollars)
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, losses on sale of assets and
impairment
losses.
EBITDA,
Adjusted EBITDA and Adjusted Net Profit 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
12
supplemental disclosures because management believes that they are
common measures of
operating performance and they are useful to investors, securities
analysts as well as other
interested parties in the assessment of operating performance and
liquidity position of
different companies in the shipping industry. The definition of
EBITDA, Adjusted EBITDA and
Adjusted Net Profit used here may not be comparable to that used
by other companies in
shipping industry due to difference in methods of
calculation.
13
Conference Call and Webcast: September 20,
2012
As announced, the Company’s management team will host a conference
call today,
September 20, 2012, at 9:00 a.m. EDT to discuss the Company’s
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 September
27, 2012. 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 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.
Condensed Consolidated Balance Sheets
June 30, 2012 (unaudited) and December 31,
2011
(In thousands of US Dollars, except for share data, unless
otherwise stated)
14
June 30, 2012
(unaudited)
December 31,
2011
ASSETS
Current assets:
Cash and cash equivalents 7,723 17,734
Restricted cash 9,932 19,560
Accounts receivable trade, net 3,261 1,764
Due from related parties 1,948 405
Inventories 2,316 2,512
Other current assets 1,161 1,457
Total current assets 26,341
43,432
Fixed assets:
Vessels, net 330,436 381,129
Office equipment, net 9 15
Total fixed assets 330,445
381,144
Other assets
Goodwill 4,365 4,365
Deferred charges 4,751 7,358
Other non-current assets 136 177
TOTAL ASSETS 366,038
436,476
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt 37,513 45,817
Trade accounts and other payables 5,600 2,595
Due to related parties 4,596 1,097
Accrued expenses 2,570 2,428
Accrued interest 1,872 1,936
Financial instruments 2,594 4,092
Deferred revenue – related party - 142
Deferred revenue 380 590
Total current liabilities 55,125 58,697
Long-term debt, net of current portion 258,705 300,586
Financial instruments, net of current portion -
270
Total liabilities 313,830
359,553
Commitments and contingencies -
-
EQUITY
Seanergy shareholders’ equity
Preferred stock, $0.0001 par value; 25,000,000 shares authorized;
none
issued - -
Common stock, $0.0001 par value; 500,000,000 authorized shares as
at
June 30, 2012 and December 31, 2011; 11,959,282 and 7,317,662
shares issued and outstanding as at June 30, 2012 and December
31,
2011, respectively 1 1
Additional paid-in capital 289,299 279,292
Accumulated deficit (237,092) (202,370)
Total equity 52,208
76,923
TOTAL LIABILITIES AND EQUITY 366,038
436,476
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Income
For the three and six months ended June 30, 2012 and
2011
(In thousands of US Dollars, except for share and per share data,
unless otherwise stated)
15
Three months ended
June 30,
Six months ended
June 30,
2012 2011 2012 2011
Revenues:
Vessel revenue - related party 2,405 10,366 5,364 20,746
Vessel revenue 16,246 18,270 31,261 33,930
Commissions - related party (90) (365) (199) (751)
Commissions (419) (512) (870) (930)
Vessel revenue, net 18,142 27,759 35,556
52,995
Expenses:
Direct voyage expenses (3,838) (764) (5,568) (1,491)
Vessel operating expenses (6,956) (8,294) (15,277) (16,891)
Voyage expenses - related party (160) (176) (322) (249)
Management fees - related party (430) (144) (880) (1,287)
Management fees (145) (668) (291) (288)
General and administration expenses (1,135) (3,304) (2,581)
(5,166)
General and administration expenses - related party (100) (154)
(202) (303)
Amortization of deferred dry-docking costs (1,146) (1,420) (2,310)
(4,053)
Depreciation (4,252) (8,115) (8,631) (16,142)
Loss on sale of vessels (13,222) - (15,555) -
Impairment loss for vessels (11,785) - (11,785)
-
Operating (loss) income (25,027) 4,720
(27,846) 7,125
Other income (expense), net:
Interest and finance costs (3,349) (3,363) (6,736) (7,129)
Interest income 15 15 35 31
Loss on financial instruments (22) (651) (162) (750)
Foreign currency exchange gain (loss), net 53 (45) 16 (111)
(3,303) (4,044) (6,847) (7,959)
Net (loss) income before taxes (28,330) 676 (34,693)
(834)
Income taxes (24) (28) (29) (44)
Net (loss) income (28,354) 648 (34,722)
(878)
Net (loss) income per common share
Basic (2.37) 0.09 (2.92) (0.12)
Diluted (2.37) 0.09 (2.92) (0.12)
Weighted average common shares
outstanding
Basic 11,957,064 7,314,930 11,880,499 7,314,930
Diluted 11,957,064 7,314,930 11,880,499
7,314,930
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Changes in
Equity
For the six months ended June 30, 2012 and
2011
(In thousands of US Dollars, except for share data, unless
otherwise stated)
16
Common stock
# of Shares Par Value
Additional paid-in
capital Accumulated deficit Total equity
Balance, December 31, 2010 7,314,931 1 279,278 (4,614 )
274,665
Issuance of non-vested shares 3,333 - - - -
Amortization of stock based compensation - - 6 - 6
Net loss for the six months ended June 30, 2011 - - - (878)
(878)
Balance, June 30, 2011 7,318,264 1 279,284 (5,492) 273,793
Common stock
# of Shares Par Value
Additional paid-in
capital Accumulated deficit Total equity
Balance, December 31, 2011 7,317,662 1 279,292 (202,370)
76,923
Issuance of common stock 4,641,620 - 10,000 - 10,000
Amortization of stock based compensation - - 7 - 7
Net loss for the six months ended June 30, 2012 - - - (34,722)
(34,722)
Balance, June 30, 2012 11,959,282 1 289,299 (237,092)
52,208
Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2012 and 2011
(All amounts in footnotes in thousands of US Dollars, except for
share and per share data)
17
Six months ended June 30,
2012 2011
Cash flows from operating activities:
Net loss (34,722) (878)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation 8,631 16,142
Amortization and write-off of deferred finance charges 247 674
Amortization of deferred dry-docking costs 2,310 4,053
Payments for dry-docking (988) (4,862)
Change in fair value of financial instruments (1,768) (2,079)
Amortization of acquired time charters - (151)
Amortization of stock based compensation 7 6
Net loss on sale of vessels 15,555 -
Impairment loss for vessels 11,785 -
Changes in operating assets and liabilities:
(Increase) decrease in operating assets
Due from related parties (1,543) (1,261)
Inventories (276) 89
Accounts receivable trade, net (1,497) (700)
Other current assets 296 489
Other non-current assets 41 -
Increase (decrease) in operating
liabilities
Trade accounts and other payables 3,005 (228)
Accrued expenses 176 498
Due to related parties 3,499 (4,025)
Accrued interest (64) 645
Deferred revenue – related party (142) (1,027)
Deferred revenue (210) 90
Net cash provided by operating activities 4,342
7,475
Cash flows from investing activities:
Proceeds from sale of vessels 16,204 -
Net cash provided by investing activities 16,204
-
Cash flows from financing activities:
Proceeds from issuance of common stock 10,000 -
Repayments of long term debt (50,185) (26,389)
Restricted cash released 9,628 70
Deferred finance charges - (144)
Net cash used in financing activities (30,557)
(26,463)
Net decrease in cash and cash equivalents (10,011)
(18,988)
Cash and cash equivalents at beginning of period
17,734 53,787
Cash and cash equivalents at end of period 7,723
34,799
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest 6,210 5,427
18
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a Marshall Islands corporation
with its
executive offices in Athens, Greece. The Company is engaged in the
transportation
of dry bulk cargoes through the ownership and operation of dry
bulk carriers.
The Company’s current fleet consists of 17 dry-bulk carriers (two
Capesize, three
Panamax, two Supramax, and ten Handysize vessels) with a total
carrying
capacity of approximately 911,914 dwt and an average fleet age of
13.6 years.
The Company's common stock trades on the NASDAQ Global 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
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates,” and
variations of such words and similar expressions are intended to
identify forwardlooking
statements. Although the Company believes that such expectations
will
prove to have been correct, 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 scope and
timing of Securities and Exchange Commission (“SEC”) and other
regulatory
agency review, competitive factors in the market in which the
Company operates;
risks associated with operations outside the United States; and
other factors listed
from time to time in the Company’s filings with the SEC. 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:
Seanergy Maritime Holdings Corp.
Christina Anagnostara - Chief Financial Officer
Tel: +30 213 0181507
19
E-mail: ir@seanergymaritime.com
Investor Relations / Media
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com</DIV></BODY></HTML>