Top Ships Announces Profit Of $5.8 Million And An EPS Of $0.13 For The 1st Half Of 2023

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Athens, Greece, — TOP Ships Inc. (the “Company”), an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced today its unaudited financial results for the six months ended June 30, 2023.

As of and for six months ended June 30, 2023, the Company reported:

  • Total revenues of $41.1 million
  • Net Income of $5.8 million
  • Earnings Per Share (“EPS”) of $0.13 and diluted EPS of $0.10
  • EBITDA* of $23.4 million
  • Total Assets of $446.2 million
  • Total Cash and Cash Equivalents including Restricted Cash of $13.6 million

Mr. Evangelos J. Pistiolis, the President, Chief Executive Officer and Director of the Company, remarked:

“We are delighted to announce yet another successful period, marking our fifth consecutive six-month period of generating net income. This achievement brings us closer to celebrating our third year of sustained profitability. After successfully completing our newbuilding program in 2022, we don’t have any capital commitments going forward. We now possess one of the most modern tanker fleets in the industry, with an average age of less than three years, consisting of state-of-the-art vessels equipped with the latest eco-friendly and fuel-efficient specifications and features. Due to our successful long-term time charter strategy, we are enjoying a substantial charter backlog and a positive income and cashflow generation, which we anticipate will extend into 2024. I would like to emphasise, that in my opinion, the current trading price of our common shares does not reflect all of these positive aspects of the Company.”

About TOP Ships Inc.

TOP Ships Inc. is an international owner and operator of modern, fuel efficient eco tanker vessels focusing on the transportation of crude oil, petroleum products (clean and dirty) and bulk liquid chemicals.

For more information about TOP Ships Inc., visit its website: www.topships.org.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

     
TOP SHIPS INC.    
      
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2023
(Expressed in thousands of U.S. Dollars – except share and per share data)  
   Six Months Ended
   June 30, June 30,
   2022  2023 
REVENUES:    
      
 Time charter revenues$36,060 $36,710 
 Time charter revenues from related parties 2,786  4,435 
 Total revenues 38,846  41,145 
      
EXPENSES:    
      
 Voyage expenses 875  804 
 Operating lease expenses 5,378  5,378 
 Other vessel operating expenses 9,705  9,624 
 Vessel depreciation 6,114  7,175 
 Management fees-related parties 1,030  1,092 
 Gain on sale of vessels (78)  
 General and administrative expenses 691  799 
      
 Operating income 15,131  16,273 
      
OTHER INCOME (EXPENSES):    
      
 Interest and finance costs (6,927) (10,528)
 Interest income   58 
 Equity gains/(losses) in unconsolidated joint ventures 401  (29)
      
 Total other expenses, net (6,526) (10,499)
      
Net income and comprehensive income 8,605  5,774 
      
Less: Deemed dividend equivalents on Series F Shares related to redemption value (14,400)  
Less: Dividends of preferred shares (7,322) (3,485)
      
Net (loss)/income and comprehensive income attributable to common shareholders (13,117) 2,289 
      
(Loss)/Earnings per common share, basic (6.15) 0.13 
(Loss)/Earnings per common share, diluted (6.15) 0.10 
     
Weighted average common shares outstanding, basic2,132,179  17,793,072 
Weighted average common shares outstanding, diluted2,132,179  33,079,436 
      
TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2022 AND JUNE 30, 2023
(Expressed in thousands of U.S. Dollars – except share and per share data)
 
 December 31, June 30,
 2022  2023 
ASSETS   
    
CURRENT ASSETS:   
    
Cash and cash equivalents20,544  9,629 
Trade accounts receivable8   
Prepayments and other1,314  1,626 
Inventories1,026  1,057 
Due from related parties  622 
Total current assets22,892  12,934 
    
FIXED ASSETS:   
    
Vessels, net389,059  381,884 
Right of use assets from operating leases28,708  24,093 
Other fixed assets, net505  505 
Total fixed assets418,272  406,482 
    
OTHER NON CURRENT ASSETS:   
    
Restricted cash4,000  4,000 
Investments in unconsolidated joint ventures22,173  20,804 
Deposit asset2,000  2,000 
Total non-current assets28,173  26,804 
    
Total assets469,337  446,220 
    
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY   
    
CURRENT LIABILITIES:   
    
Current portion of long-term debt12,344  34,874 
Due to related parties237   
Accounts payable1,953  1,759 
Accrued liabilities2,061  2,083 
Unearned revenue7,030  6,286 
Current portion of Operating lease liabilities8,610  8,795 
Vessel fair value participation liability  3,605 
Total current liabilities32,235  57,402 
    
NON-CURRENT LIABILITIES:   
    
Non-current portion of long-term debt221,370  192,309 
Non-current portion of Operating lease liabilities15,338  10,847 
Other non-current liabilities100  50 
Vessel fair value participation liability3,271   
Total non-current liabilities240,079  203,206 
    
COMMITMENTS AND CONTINGENCIES   
    
Total liabilities272,314  260,608 
    
MEZZANINE EQUITY:   
Preferred stock, $0.01 par value; 20,000,000 shares authorized; 13,452 Series E Shares issued and outstanding at December 31, 2022 and June 30, 2023 and 5,850,748 and 3,659,628 Series F Shares issued and outstanding at December 31, 2022 and June 30, 202359  37 
Preferred stock, Paid-in capital in excess of par86,292  60,021 
Total mezzanine equity86,351  60,058 
    
STOCKHOLDERS’ EQUITY:   
    
Preferred stock, $0.01 par value; 20,000,000 shares authorized; of which 100,000 Series D shares were outstanding at December 31, 2022 and June 30, 20231  1 
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 10,294,906 shares issued and outstanding at December 31, 2022 and 20,346,091 shares issued and outstanding at June 30, 2023103  203 
Additional paid-in capital428,374  437,382 
Accumulated deficit(317,806) (312,032)
Total stockholders’ equity110,672  125,554 
    
Total liabilities, mezzanine equity and stockholders’ equity469,337  446,220 
 
TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2023
(Expressed in thousands of U.S. Dollars)
 Six months ended June 30,
 2022  2023 
Net Cash provided by Operating Activities13,947  13,023 
    
Cash Flows from Investing Activities:   
Advances for vessels under construction(216,559)  
Net proceeds from sale of vessels72,060   
Returns of investments in unconsolidated joint ventures1,449  1,340 
Net Cash (used in)/provided by Investing Activities(143,050) 1,340 
    
Cash Flows from Financing Activities:   
Proceeds from debt156,201   
Principal payments of debt(6,906) (7,813)
Prepayment of debt(54,179)  
Proceeds from issuance of series F preferred stock47,630   
Proceeds from related party debt9,000   
Prepayment of related party debt(9,000)  
Proceeds from equity offerings, gross9,217  13,561 
Equity offerings costs(574) (1,260)
Dividends of Preferred shares(6,921) (3,485)
Payment of financing costs(3,468)  
Redemption of preferred shares  (26,293)
Proceeds from warrant exercises, net  12 
Net Cash provided by/(used in) Financing Activities141,000  (25,278)
    
Net increase/(decrease) in cash and cash equivalents and restricted cash11,897  (10,915)
    
Cash and cash equivalents and restricted cash at beginning of year6,370  24,544 
    
Cash and cash equivalents and restricted cash at end of the period18,267  13,629 
    
Cash breakdown   
Cash and cash equivalents14,267  9,629 
Restricted cash, non-current4,000  4,000 
    
SUPPLEMENTAL CASH FLOW INFORMATION   
Capital expenditures included in Accounts payable/ Accrued liabilities/ Due to related parties155   
Interest paid net of capitalized interest4,414  8,814 
Finance fees included in Accounts payable/Accrued liabilities/Due to related parties100  16 
Dividends of Preferred shares included in Due to Related Parties1,369   
Offering expenses included in liabilities141   
Deemed dividend equivalents on Series F Shares related to redemption value14,400   
Settlement of Due to related parties with the issuance of Series F Shares24,370   
Related party S&P commissions relating to Proceeds from vessel sales included in Due to related parties346   
      

*Non-US GAAP Measures

This report describes earnings before interest, taxes, depreciation and amortization (EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a “Non-U.S. GAAP” measure). We define EBITDA as earnings before interest, taxes, depreciation and amortization.

EBITDA is a non-U.S. GAAP financial measure that is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-U.S. GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. This is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength.

EBITDA is not a measure of financial performance under U.S. GAAP, does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. EBITDA as presented below may not be comparable to similarly titled measures of other companies. See below for a reconciliation of EBITDA to Net Income, the most directly comparable U.S. GAAP measure.

Reconciliation of Net Income to EBITDA

 Six months ended June 30,
(Expressed in thousands of U.S. Dollars)20222023
    
Net Income8,6055,774
    
 Add: Vessel depreciation6,1147,175
 Add: Interest and finance costs6,92710,528
 Less: Interest Income(58)
    
EBITDA21,64623,419