|
Limassol, Cyprus - August 8, 2024 Castor Maritime Inc. (NASDAQ: CTRM) ("Castor" or the "Company"), a diversified global shipping company, today announced its results for the three months and six months ended June 30, 2024. Earnings Highlights of the Second Quarter Ended June 30, 2024: • Total vessel revenues: $16.3 million for the three months ended June 30, 2024, as compared to $25.3 million for the three months ended June 30, 2023, or a 35.6% decrease; • Net income of $22.9 million for the three months ended June 30, 2024, as compared to net income of $8.2 million for the three months ended June 30, 2023, or a 179.3% increase; • Earnings per common share, basic: $2.29 per share for the three months ended June 30, 2024, as compared to $0.86 per share for the three months ended June 30, 2023; • EBITDA(1): $26.5 million for the three months ended June 30, 2024, as compared to $16.1 million for the three months ended June 30, 2023; • Adjusted EBITDA(1): $25.2 million for the three months ended June 30, 2024, as compared to $13.5 million for the three months ended June 30, 2023; and • Cash and restricted cash of $236.3 million as of June 30, 2024, as compared to $120.9 million as of December 31, 2023. Earnings Highlights of the Six Months Ended June 30, 2024: • Total Vessel Revenues from continuing operations: $36.7 million for the six months ended June 30, 2024, as compared to $49.7 million for the six months ended June 30, 2023, or a 26.2% decrease; • Net income from continuing operations: $45.2 million for the six months ended June 30, 2024, as compared to $1.7 million for the six months ended June 30, 2023, or a 2,558.8% increase; • Net income of $45.2 million for the six months ended June 30, 2024, as compared to $19 million for the six months ended June 30, 2022, or a 137.9% increase; • Earnings per common share, basic from continuing operations: $4.52 per share for the six months ended June 30, 2024, as compared to $0.18 per share for the six months ended June 30, 2023; • EBITDA from continuing operations(1): $53.3 million for the six months ended June 30, 2024, as compared to $17.7 million for the six months ended June 30, 2023; and • Adjusted EBITDA from continuing operations(1): $42.1 million for the six months ended June 30, 2024, as compared to $22.8 million for the six months ended June 30, 2023. (1) EBITDA and Adjusted EBITDA are not recognized measures under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition and reconciliation of these measures to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Management Commentary Second Quarter 2024: Mr. Petros Panagiotidis, Chief Executive Officer of Castor, commented: "In the second quarter of 2024, we enjoyed robust cash flows from operations and from the sale of a number of our dry cargo vessels. This allowed us to reduce our debt and strengthen our balance sheet further. In May, we completed our tender offer for the vast majority of our outstanding warrants, aiming to provide greater clarity in our capital structure. During the second quarter, we repaid a significant portion of our debt, reducing our finance costs further and utilizing part of our substantial liquidity. Importantly, we have recently announced our entry into the dry cargo Ultramax sector. We remain committed to our growth trajectory by seeking further opportunities in the shipping space, including opportunities to modernize our fleet." Earnings Commentary: Second Quarter ended June 30, 2024, and 2023, Results Total vessel revenues for the three months ended June 30, 2024, decreased to $16.3 million from $25.3 million in the same period of 2023. This variation was mainly driven by the decrease in our Available Days (defined below) from 1,904 days in the three months ended June 30, 2023, to 1,076 days in the three months ended June 30, 2024, following the sale of four dry bulk vessels during the three months ended June 30, 2024 and the sale of five dry bulk vessels from the second to the fourth quarters of 2023. This decrease in Available Days was partially offset by an increase in prevailing charter rates of our dry bulk vessels. There was a decrease in voyage expenses to $1.0 million in the three months ended June 30, 2024, from $1.4 million in the same period of 2023, which was mainly associated with a decrease in bunkers consumption. Vessel operating expenses decreased by $3.9 million to $6.5 million in the three months ended June 30, 2024 from $10.4 million in the same period of 2023, mainly reflecting the decrease in the Ownership Days of our fleet to 1,076 days in the three months ended June 30, 2024, from 1,928 days in the same period in 2023. Management fees in the three months ended June 30, 2024, amounted to $1.1 million, whereas in the same period of 2023, management fees totaled $1.8 million. This decrease in management fees is due to the decrease in the total number of Ownership Days for which our managers charge us a daily management fee following the sales of the dry bulk vessels mentioned above, partly offset by the management fee adjustment for inflation under our Amended and Restated Master Management Agreement, with effect from July 1, 2023. The decrease in depreciation and amortization costs by $2.0 million to $3.5 million in the three months ended June 30, 2024, from $5.5 million in the same period of 2023, mainly reflects the decrease in our Ownership Days following the sale of four dry bulk vessels during the three months ended June 30, 2024 and the sale of five dry bulk vessels from the second to fourth quarters of 2023. General and administrative expenses from continuing operations in the three months ended June 30, 2024, amounted to $1.5 million, whereas, in the same period of 2023, general and administrative expenses totaled $1.7 million. This decrease mainly stemmed from lower professional fees during the period. Gain on sale of vessels in the three months ended June 30, 2024, amounted to $11.4 million following the sales of the: (i) M/V Magic Nebula on April 18, 2024, (ii) M/V Magic Venus on May 10, 2024, (iii) M/V Magic Vela on May 23, 2024, and (iv) M/V Magic Horizon on May 28, 2024, while gain on sale of vessels for the three months ended June 30, 2023 amounted to $3.1 million following the sale of the M/V Magic Rainbow on April 18, 2023. During the three months ended June 30, 2024, we incurred net interest costs and finance costs from continuing operations amounting to $0.1 million compared to $2.4 million during the same period in 2023. The decrease is due to the drop in our weighted average indebtedness, as well as an increase in interest income we earned from our time and cash deposits, due to increased interest rates, as partially offset by a higher weighted average interest rate in our borrowings, as a result of the increase in the variable benchmark rates during the three months ended June 30, 2024, as compared with the same period of 2023. Other income, net in the three months ended June 30, 2024, amounted to $7.4 million, which includes (i) a gain of $5.1 million from our investments in listed equity securities, (ii) dividend income on equity securities of $2.0 million and (iii) dividend income of $0.4 million from our investment in 140,000 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares of Toro (the "Toro Series A Preferred Shares"). Other income, net in the three months ended June 30, 2023 amounted to $3.0 million and mainly included (i) the gain of $2.6 million from our investments in listed equity securities, (ii) dividend income on equity securities of $0.1 million and (iii) dividend income of $0.3 million from our investment in the Toro Series A Preferred Shares. Full report Castor Maritime press release 
|
