ATHENS, Greece, March 31, 2015 /PRNewswire/ -- Paragon
Shipping Inc. (NASDAQ: PRGN) ("Paragon Shipping" or the "Company"),
a global shipping transportation company specializing in drybulk
cargoes, announced today its results for the fourth quarter and
year ended December 31, 2014.
Fourth Quarter 2014 Highlights & Recent
Developments
- Took delivery of two eco-design Ultramax newbuildings, the M/V
Gentle Seas and the M/V Peaceful Seas.
- Net revenue, net of voyage expenses, of $11.6 million in the fourth quarter of 2014.
- Reduced average daily adjusted total vessel operating expenses
by 8.2% year-over-year.
- Adjusted EBITDA of $0.4 million
in the fourth quarter of 2014.
- Adjusted net loss of $7.1
million, or $0.29 per common
share, in the fourth quarter of 2014.
Financial Highlights
(Expressed in thousands of
United States Dollars, except for vessel data, TCE and share
data)
|
Quarter
Ended
December 31,
2013
|
Quarter
Ended
December 31,
2014
|
Year
Ended
December 31,
2013
|
Year
Ended
December 31,
2014
|
|
Average number of
vessels
|
13.0
|
15.5
|
12.9
|
14.4
|
|
Time charter
equivalent rate (TCE) (1)
|
11,804
|
8,187
|
10,729
|
7,795
|
|
Net Revenue, net
of voyage expenses
|
13,929
|
11,642
|
49,588
|
40,019
|
|
EBITDA
(1)
|
556
|
(2,778)
|
7,873
|
(23,243)
|
|
Adjusted EBITDA
(1)
|
4,698
|
387
|
19,657
|
2,277
|
|
Net
Loss
|
(5,960)
|
(10,222)
|
(16,953)
|
(51,796)
|
|
Adjusted Net Loss
(1)
|
(1,335)
|
(7,057)
|
(4,686)
|
(24,765)
|
|
Loss per common
share basic and diluted
|
(0.34)
|
(0.41)
|
(1.31)
|
(2.18)
|
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.08)
|
(0.29)
|
(0.36)
|
(1.04)
|
|
|
(1)
|
Please see the table
at the back of this release for a reconciliation of TCE to Charter
Revenue, EBITDA and Adjusted EBITDA to Net Income / (Loss),
Adjusted Net Income / (Loss) to Net Income / (Loss) and Adjusted
Earnings / (Loss) per common share to Earnings / (Loss) per common
share, the most directly comparable financial measures calculated
and presented in accordance with generally accepted accounting
principles in the United States ("U.S. GAAP").
|
Management Commentary
Commenting on the results,
Michael Bodouroglou, Chairman, Chief Executive Officer and Interim
Chief Financial Officer of Paragon Shipping, stated, "During the
fourth quarter of 2014 charter rates remained at historically low
levels, a trend that has continued in 2015. Despite this
challenging market, for the fourth quarter of 2014, we reported net
revenues, net of voyage expenses of $11.6
million, which translates into an average daily time charter
equivalent, or TCE, rate of $8,187,
about 25% higher than the average daily TCE rate of $6,570 we reported for the third quarter of 2014,
with a utilization rate of 99.8%. For the fourth quarter of 2014,
we reported an adjusted EBITDA of $0.4
million and an adjusted net loss of $7.1 million, or 29
cents per common share."
Mr. Bodouroglou continued, "In 2014, we continued to execute on
our fleet growth strategy by increasing our fleet size to 16
vessels in four size classes. Our further fleet growth is secured
with our newbuilding program of five eco-design Ultramax and
Kamsarmax drybulk vessels with expected deliveries in 2015. The
Company has currently secured debt financing of up to $78.0 million, in the aggregate, for four of its
five newbuilding drybulk carriers. While expanding our fleet size,
our aim is to maintain a cost-effective structure. For the full
year 2014, our average adjusted total vessel operating expenses was
$7,244 per vessel per day, which
represents an 8.2% year-over-year reduction, as a result of the
Company's cost control efficiency and the economies of scale of
having a larger fleet."
Mr. Bodouroglou concluded, "In order to withstand the current
challenging conditions, our main focus is on improving the
Company's cash liquidity and cash flow breakeven levels. To do so,
we are currently exploring several alternatives to effectively
manage our working capital requirements and other commitments. We
are currently in advanced negotiations with several of our lenders
to improve our repayment profile and proactively cure any potential
covenant breaches in the event that the market continues to be weak
throughout the year. We remain committed to take all the necessary
steps to emerge stronger from this downturn."
Fourth Quarter 2014 Financial Results
Gross charter
revenue for the fourth quarter of 2014 was $16.4 million, compared to $16.5 million for the fourth quarter of 2013. The
Company reported a net loss of $10.2
million, or $0.41 per basic
and diluted share, for the fourth quarter of 2014, calculated based
on a weighted average number of basic and diluted shares
outstanding for the period of 24,223,745 and reflecting the impact
of the non-cash items discussed below. For the fourth quarter of
2013, the Company reported a net loss of $6.0 million, or $0.34 per basic and diluted share, calculated
based on a weighted average number of basic and diluted shares of
17,162,948.
Excluding all non-cash items described below, the adjusted net
loss for the fourth quarter of 2014 was $7.1
million, or $0.29 per basic
and diluted share, compared to adjusted net loss of $1.3 million, or $0.08 per basic and diluted share, for the fourth
quarter of 2013.
EBITDA for the fourth quarter of 2014 was negative $2.8 million, compared to positive $0.6 million for the fourth quarter of 2013.
EBITDA for the fourth quarter of 2014 was calculated by adding the
net loss of $10.2 million to net
interest expense, including interest expense from interest rate
swaps, and depreciation that in the aggregate amounted to
$7.4 million. Adjusted EBITDA,
excluding all non-cash items described below, was $0.4 million for the fourth quarter of 2014,
compared to $4.7 million for the
fourth quarter of 2013.
The Company operated an average of 15.5 vessels during the
fourth quarter of 2014, earning an average TCE rate of $8,187 per day, compared to an average of 13.0
vessels during the fourth quarter of 2013, earning an average TCE
rate of $11,804 per day.
Adjusted total vessel operating expenses, which included vessel
operating expenses, management fees, general and administrative
expenses and dry-docking costs, and excluded share-based
compensation, were $11.1 million for
the fourth quarter of 2014, compared to $9.9
million for the fourth quarter of 2013. On a daily basis,
adjusted total vessel operating expenses for the fourth quarter of
2014 were approximately $7,790 per
vessel per day, or 6.2% lower than the adjusted total vessel
operating expenses of $8,301 per
vessel per day for the fourth quarter of 2013.
As of December 31, 2014, the
Company owned approximately 11.0% of the outstanding common stock
of Box Ships Inc. (NYSE: TEU) ("Box Ships"), a former wholly-owned
subsidiary of the Company which completed its initial public
offering in April 2011. The
investment in Box Ships is accounted for under the equity method
and is separately reflected on the Company's unaudited condensed
consolidated balance sheets. For the fourth quarter of 2014, the
Company recorded a loss of $0.1
million, compared to $0.3
million income for the fourth quarter of 2013.
As of December 31, 2014, the
difference between the fair value and the book value of the
Company's investment in Box Ships was considered to be other than
temporary and therefore the investment was impaired and the Company
recorded a non-cash loss of $3.0
million.
Fourth Quarter 2014 Non-cash and One-off Items
The
Company's results for the three months ended December 31, 2014 included the following non-cash
items:
- Loss from marketable securities of $37,127, or less than $0.01 per basic and diluted share.
- Loss on investment in affiliate of $3.0
million, or $0.12 per basic
and diluted share.
- An unrealized gain on interest rate swaps of $0.1 million, or $0.01 per basic and diluted share.
- Non-cash expenses of $0.3
million, or $0.01 per basic
and diluted share, relating to the amortization of the compensation
cost recognized for non-vested share awards issued to executive
officers, directors and employees.
In the aggregate, these non-cash items decreased the Company's
earnings by $3.2 million, which
represents a $0.12 decrease in
earnings per basic and diluted share, for the three months ended
December 31, 2014.
Year ended December 31, 2014
Financial Results
Gross charter revenue for the year ended
December 31, 2014 was $58.1 million, compared to $59.5 million for the year ended December 31, 2013. The Company reported a net
loss of $51.8 million, or
$2.18 per basic and diluted share,
for the year ended December 31, 2014,
calculated based on a weighted average number of basic and diluted
shares outstanding for the period of 23,326,062 and reflecting the
impact of the non-cash items discussed below. For the year ended
December 31, 2013, the Company
reported a net loss of $17.0 million,
or $1.31 per basic and diluted share,
calculated based on a weighted average number of basic and diluted
shares of 12,639,128.
Excluding all non-cash items described below, the adjusted net
loss for the year ended December 31,
2014 was $24.8 million, or
$1.04 per basic and diluted share,
compared to adjusted net loss of $4.7
million, or $0.36 per basic
and diluted share, for the year ended December 31, 2013.
EBITDA for the year ended December 31,
2014 was negative $23.2
million, compared to positive $7.9
million for the year ended December
31, 2013. EBITDA for the year ended December 31, 2014 was calculated by adding the
net loss of $51.8 million to net
interest expense, including interest expense from interest rate
swaps, and depreciation that in the aggregate amounted to
$28.6 million. Adjusted EBITDA,
excluding all non-cash items described below, was $2.3 million for the year ended December 31, 2014, compared to $19.7 million for the year ended December 31, 2013.
The Company operated an average of 14.4 vessels during the year
ended December 31, 2014, earning an
average TCE rate of $7,795 per day,
compared to an average of 12.9 vessels during the year ended
December 31, 2013, earning an average
TCE rate of $10,729 per day.
Adjusted total vessel operating expenses, which included vessel
operating expenses, management fees, general and administrative
expenses and dry-docking costs, and excluded share-based
compensation, were $38.0 million for
the year ended December 31, 2014,
compared to $37.2 million for the
year ended December 31, 2013. On a
daily basis, adjusted total vessel operating expenses for the year
ended December 31, 2014 were
approximately $7,244 per vessel per
day, or 8.2% lower than the adjusted total vessel operating
expenses of $7,895 per vessel per day
for the year ended December 31, 2013,
as a result of the Company's cost control efficiency and the
economies of scale of having a larger fleet.
The impairment loss of $15.7
million for the year ended December
31, 2014, relates to the write down to fair value of the
contract price of the 4,800 TEU containership newbuilding, as a
result of the increased probability of selling the respective
vessel as of March 31, 2014.
The gain from the sale of assets of $0.4
million for the year ended December
31, 2014, relates to the gain on the sale of the 4,800 TEU
containership newbuilding that was concluded in May 2014.
For the year ended December 31,
2014, the Company recorded income of $0.5 million, compared to $1.7 million income for the year ended
December 31, 2013.
In the year ended December 31,
2014, the Company recorded a non-cash loss of $0.2 million relating to the dilution effect from
the Company's non-participation in the public offering by Box Ships
of 5,500,000 of Box Ships' common shares, which was completed on
April 15, 2014. In addition, as of
March 31, 2014, June 30, 2014 and December
31, 2014, the difference between the fair value and the book
value of the Company's investment in Box Ships was considered to be
other than temporary and therefore the investment was impaired and
the Company recorded an aggregate non-cash loss of $8.6 million. Both items are included in "Loss on
investment in affiliate" in the unaudited condensed consolidated
statements of comprehensive loss at the end of this release.
Year ended December 31, 2014
Non-cash and One-off Items
The Company's results for the
year ended December 31, 2014 included
the following non-cash items:
- Impairment loss of $15.7 million,
or $0.66 per basic and diluted
share.
- Gain from sale of assets of $0.4
million, or $0.02 per basic
and diluted share.
- Loss from marketable securities of $25,529, or less than $0.01 per basic and diluted share.
- Loss on investment in affiliate of $8.8
million, or $0.37 per basic
and diluted share.
- An unrealized gain on interest rate swaps of $0.5 million, or $0.02 per basic and diluted share.
- Non-cash expenses of $1.9
million, or $0.08 per basic
and diluted share, relating to share based compensation to the
management company amounting to $0.9
million and to the amortization of the compensation cost
recognized for non-vested share awards issued to executive
officers, directors and employees amounting to $1.0 million.
- Write off of financing expenses of $1.5
million, or $0.06 per basic
and diluted share.
In the aggregate, these non-cash items decreased the Company's
earnings by $27.0 million, which
represents a $1.14 decrease in
earnings per basic and diluted share, for the year ended
December 31, 2014.
Cash Flows
For the year ended December 31, 2014, the Company's net cash used in
operating activities was $6.2
million, compared to net cash generated from operating
activities of $4.6 million for the
year ended December 31, 2013. For the
year ended December 31, 2014, net
cash used in investing activities was $104.5
million and net cash from financing activities was
$86.5 million. For the year ended
December 31, 2013, net cash used in
investing activities was $6.4 million
and net cash from financing activities was $15.5 million.
Newbuilding Program Update
In October 2014, the Company took delivery of its
first two Ultramax drybulk carriers, the M/V Gentle Seas and the
M/V Peaceful Seas (Hull numbers DY152 and DY153), from Yangzhou
Dayang Shipbuilding Co. Ltd. in China. These vessels have a cargo carrying
capacity of approximately 63,350 dwt each. In October 2014, an aggregate amount of $35.7 million was paid to the shipyard
representing the final installment for these two vessels, which was
mainly financed from the loan facility with HSH Nordbank AG,
following a total drawdown of $34.4
million. Both vessels have already been deployed under
short-term time charters.
Currently, the Company's outstanding newbuilding program
consists of two Ultramax drybulk carriers (Hull numbers DY4050 and
DY4052) and three Kamsarmax drybulk carriers (Hull numbers YZJ1144,
YZJ1145 and YZJ1142) with expected deliveries in 2015. This
five-vessel newbuilding program has an aggregate cost of
$148.2 million, of which $101.7 million is currently outstanding. With the
$160.0 million syndicated secured
loan facility led by Nordea Bank Finland Plc, the Company has
currently secured debt financing of up to $78.0 million in the aggregate for all of its
outstanding Ultramax and two of its Kamsarmax newbuilding drybulk
carriers. For the remaining Kamsarmax newbuilding drybulk carrier
that is expected to be delivered in the fourth quarter of 2015, the
Company is currently in discussions to secure debt financing based
on similar terms.
Financing Update
As of December 31, 2014, the Company was in compliance
with the financial and security cover ratio covenants contained in
its debt agreements, with the exception of the security cover ratio
covenant contained in its loan agreement with Commerzbank AG. The
Company has entered into a preliminary agreement with Commerzbank
AG to amend certain terms of the loan, including, but not limited
to, changes in the repayment profile and the waiver of the security
cover ratio covenant through 2015, which is subject to formal
approvals by the Company and the lender.
The Company is currently in negotiations with several of its
other lenders to improve its repayment profile and proactively cure
any potential breaches in the event that the current market
conditions persist or worsen. Within this context, the Company has
agreed to certain arrangements with another two lenders, in
addition to the preliminary agreement with Commerzbank AG discussed
above. Although management believes that the lenders will continue
to support the Company, there can be no assurance that the outcome
of these negotiations will be successful.
Conference Call and Webcast details
The Company's
management team will host a conference call to discuss its fourth
quarter and year ended December 31,
2014 results on April 1, 2015,
at 9:00 am Eastern Time.
Participants should dial into the call ten minutes before the
scheduled time using the following numbers 1-888-348-8931
(USA) or +1-412-902-4248
(international) to access the call. A replay of the conference call
will be available for seven days and can be accessed by dialing
1-877-870-5176 (USA) or
+1-858-384-5517 (international) and using passcode 10061729.
Slides and audio webcast
There will also be a
simultaneous live webcast through the Company's website,
www.paragonship.com. Participants should register on the website
approximately ten minutes prior to the start of the webcast. If you
would like a copy of the release mailed or faxed, please contact
Allen & Caron Investor Relations at 212-691-8087.
About Paragon Shipping Inc.
Paragon Shipping is an
international shipping company incorporated under the laws of the
Republic of the Marshall Islands
with executive offices in Athens,
Greece, specializing in the transportation of drybulk
cargoes. Paragon Shipping's current fleet consists of sixteen
drybulk vessels with a total carrying capacity of 980,380 dwt. In
addition, Paragon Shipping's current newbuilding program consists
of two Ultramax drybulk carriers and three Kamsarmax drybulk
carriers that are scheduled to be delivered in 2015. The Company's
common shares and senior notes trade on NASDAQ under the symbols
"PRGN" and "PRGNL," respectively. For more information, visit:
www.paragonship.com. The information contained on Paragon
Shipping's website does not constitute part of this press
release.
Forward-Looking Statements
Certain statements in this
press release are "forward-looking statements" within the meaning
of the Private Securities Litigation Act of 1995. These
forward-looking statements are based on our current expectations
and beliefs and are subject to a number of risk factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Such risks
and uncertainties include, without limitation, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for drybulk shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors, as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at www.sec.gov.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
Allen & Caron Inc.
Rudy
Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
Len Hall (Media)
len@allencaron.com
(949) 474-4300
- Tables Follow -
Fleet List
Drybulk Fleet
The following tables represent our drybulk fleet and the drybulk
newbuilding vessels that we have agreed to acquire as of
March 31, 2015.
|
Operating Drybulk
Fleet
|
|
Name
|
Type / No. of
Vessels
|
Dwt
|
Year
Built
|
|
Panamax
|
|
Dream
Seas
|
Panamax
|
75,151
|
2009
|
|
Coral
Seas
|
Panamax
|
74,477
|
2006
|
|
Golden
Seas
|
Panamax
|
74,475
|
2006
|
|
Pearl
Seas
|
Panamax
|
74,483
|
2006
|
|
Diamond
Seas
|
Panamax
|
74,274
|
2001
|
|
Deep
Seas
|
Panamax
|
72,891
|
1999
|
|
Calm
Seas
|
Panamax
|
74,047
|
1999
|
|
Kind
Seas
|
Panamax
|
72,493
|
1999
|
|
Total
Panamax
|
8
|
592,291
|
|
|
Ultramax
|
|
|
|
|
Gentle
Seas
|
Ultramax
|
63,350
|
2014
|
|
Peaceful
Seas
|
Ultramax
|
63,331
|
2014
|
|
Total
Ultramax
|
2
|
126,681
|
|
|
Supramax
|
|
|
|
|
Friendly
Seas
|
Supramax
|
58,779
|
2008
|
|
Sapphire
Seas
|
Supramax
|
53,702
|
2005
|
|
Total
Supramax
|
2
|
112,481
|
|
|
Handysize
|
|
|
|
|
Prosperous
Seas
|
Handysize
|
37,293
|
2012
|
|
Precious
Seas
|
Handysize
|
37,205
|
2012
|
|
Priceless
Seas
|
Handysize
|
37,202
|
2013
|
|
Proud
Seas
|
Handysize
|
37,227
|
2014
|
|
Total
Handysize
|
4
|
148,927
|
|
|
Grand
Total
|
16
|
980,380
|
|
|
Drybulk Newbuildings
that we have agreed to acquire
|
|
Hull
no.
|
Type / No. of
Vessels
|
Dwt
|
Expected
Delivery
|
|
Ultramax
|
|
Hull no.
DY4050
|
Ultramax
|
63,500
|
Q3 2015
|
|
Hull no.
DY4052
|
Ultramax
|
63,500
|
Q3 2015
|
|
Total
Ultramax
|
2
|
127,000
|
|
|
Kamsarmax
|
|
Hull no.
YZJ1144
|
Kamsarmax
|
81,800
|
Q2 2015
|
|
Hull no.
YZJ1145
|
Kamsarmax
|
81,800
|
Q2 2015
|
|
Hull no.
YZJ1142
|
Kamsarmax
|
81,800
|
Q4 2015
|
|
Total
Kamsarmax
|
3
|
245,400
|
|
|
Grand
Total
|
5
|
372,400
|
|
|
Summary Fleet
Data
(Expressed in United States Dollars where
applicable)
|
|
|
Quarter
Ended
December 31,
2013
|
Quarter
Ended
December 31,
2014
|
Year Ended
December 31, 2013
|
Year Ended
December 31, 2014
|
|
FLEET
DATA
|
|
Average number of
vessels (1)
|
13.0
|
15.5
|
12.9
|
14.4
|
|
Calendar days for
fleet (2)
|
1,196
|
1,425
|
4,717
|
5,241
|
|
Available days for
fleet (3)
|
1,196
|
1,425
|
4,652
|
5,180
|
|
Operating days for
fleet (4)
|
1,180
|
1,422
|
4,622
|
5,134
|
|
Fleet utilization
(5)
|
98.7%
|
99.8%
|
99.4%
|
99.1%
|
|
AVERAGE DAILY
RESULTS
|
|
Time charter
equivalent (6)
|
11,804
|
8,187
|
10,729
|
7,795
|
|
Vessel operating
expenses (7)
|
4,185
|
4,427
|
4,401
|
4,325
|
|
Dry-docking expenses
(8)
|
-
|
-
|
360
|
418
|
|
Management fees -
related party adjusted (9)
|
1,049
|
969
|
1,023
|
1,028
|
|
General and
administrative expenses adjusted (10)
|
3,067
|
2,394
|
2,111
|
1,473
|
|
Total vessel
operating expenses adjusted (11)
|
8,301
|
7,790
|
7,895
|
7,244
|
|
|
|
(1)
|
Average number of
vessels is the number of vessels that constituted our fleet for the
relevant period, as measured by the sum of the number of calendar
days each vessel was a part of our fleet during the period divided
by the number of days in the period.
|
|
(2)
|
Calendar days for the
fleet are the total days the vessels were in our possession for the
relevant period.
|
|
(3)
|
Available days for
the fleet are the total calendar days for the relevant period less
any off-hire days associated with scheduled dry-dockings or special
or intermediate surveys.
|
|
(4)
|
Operating days for
the fleet are the total available days for the relevant period less
any off-hire days due to any reason, other than scheduled
dry-dockings or special or intermediate surveys, including
unforeseen circumstances. Any idle days relating to the days a
vessel remains unemployed are included in operating
days.
|
|
(5)
|
Fleet utilization is
the percentage of time that our vessels were able to generate
revenues and is determined by dividing operating days by fleet
available days for the relevant period.
|
|
(6)
|
Time charter
equivalent ("TCE") is a measure of the average daily revenue
performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is
determined by dividing Net Revenue generated from charters less
voyage expenses by operating days for the relevant time period.
Voyage expenses consist of all costs that are unique to a
particular voyage, primarily including port expenses, canal dues,
war risk insurances and fuel costs, net of gains or losses from the
sale of bunkers to charterers. TCE is a non-GAAP standard shipping
industry performance measure used primarily to compare
period-to-period changes in a shipping company's performance
despite changes in the mix of charter types (i.e., spot voyage
charters, time charters and bareboat charters) under which the
vessels may be employed between the periods.
|
|
(7)
|
Daily vessel
operating expenses, which includes crew costs, provisions, deck and
engine stores, lubricating oil, insurance, maintenance and repairs,
is calculated by dividing vessel operating expenses by fleet
calendar days for the relevant time period.
|
|
(8)
|
Daily dry-docking
expenses are calculated by dividing dry-docking expenses by fleet
calendar days for the relevant time period.
|
|
(9)
|
Daily management fees
- related party adjusted are calculated by dividing management fees
- related party, excluding share based compensation to the
management company, by fleet calendar days for the relevant time
period.
|
|
(10)
|
Daily general and
administrative expenses adjusted are calculated by dividing general
and administrative expenses, excluding non-cash expenses relating
to the amortization of the share based compensation cost for
non-vested share awards, by fleet calendar days for the relevant
time period.
|
|
(11)
|
Total vessel
operating expenses ("TVOE") is a measurement of our total expenses
associated with operating our vessels. TVOE is the sum of vessel
operating expenses, dry-docking expenses, management fees and
general and administrative expenses. Daily TVOE adjusted is
calculated by dividing TVOE, excluding non-cash expenses relating
to the amortization of the share based compensation cost for
non-vested share awards and share based compensation to the
management company, by fleet calendar days for the relevant time
period.
|
|
Time Charter
Equivalents Reconciliation
(Expressed in thousands of
United States Dollars where applicable, except for
TCE)
|
|
|
Quarter
Ended
December 31,
2013
|
Quarter
Ended
December 31,
2014
|
Year
Ended
December 31,
2013
|
Year
Ended
December 31,
2014
|
|
Charter
Revenue
|
16,509
|
16,432
|
59,531
|
58,138
|
|
Commissions
|
(938)
|
(966)
|
(3,274)
|
(3,374)
|
|
Voyage Expenses,
net
|
(1,642)
|
(3,824)
|
(6,669)
|
(14,745)
|
|
Net Revenue, net of
voyage expenses
|
13,929
|
11,642
|
49,588
|
40,019
|
|
Total operating
days
|
1,180
|
1,422
|
4,622
|
5,134
|
|
Time Charter
Equivalent
|
11,804
|
8,187
|
10,729
|
7,795
|
|
Condensed Cash
Flow Information (Unaudited)
(Expressed in thousands of
United States Dollars)
|
|
|
Year
Ended
December 31,
2013
|
Year
Ended
December 31,
2014
|
|
Cash and Cash
Equivalents, beginning of period
|
17,677
|
31,302
|
|
Cash generated from /
(used in):
|
|
Operating
Activities
|
4,564
|
(6,182)
|
|
Investing
Activities
|
(6,442)
|
(104,546)
|
|
Financing
Activities
|
15,503
|
86,457
|
|
Net increase /
(decrease) in Cash and Cash Equivalents
|
13,625
|
(24,271)
|
|
Cash and Cash
Equivalents, end of period
|
31,302
|
7,031
|
|
Reconciliation of
U.S. GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
EBITDA and
Adjusted EBITDA Reconciliation (1)
|
|
(Expressed in
thousands of United States Dollars)
|
|
|
Quarter
Ended
December 31,
2013
|
Quarter
Ended
December 31,
2014
|
Year Ended
December 31,
2013
|
Year Ended
December 31,
2014
|
|
Net Loss
|
(5,960)
|
(10,222)
|
(16,953)
|
(51,796)
|
|
Plus Net interest
expense, including interest expense from interest rate
swaps
|
2,213
|
2,533
|
7,839
|
10,196
|
|
Plus
Depreciation
|
4,303
|
4,911
|
16,987
|
18,357
|
|
EBITDA
|
556
|
(2,778)
|
7,873
|
(23,243)
|
|
Adjusted EBITDA
Reconciliation
|
|
Net Loss
|
(5,960)
|
(10,222)
|
(16,953)
|
(51,796)
|
|
Write off of
capitalized expenses from contract cancellation
|
233
|
-
|
233
|
-
|
|
Impairment
loss
|
-
|
-
|
-
|
15,695
|
|
Gain from sale of
assets
|
-
|
-
|
-
|
(403)
|
|
Loss from marketable
securities
|
959
|
37
|
1,911
|
26
|
|
Loss on investment in
affiliate
|
2,852
|
2,985
|
8,620
|
8,840
|
|
Unrealized gain on
interest rate swaps
|
(175)
|
(116)
|
(835)
|
(504)
|
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
273
|
259
|
1,855
|
1,866
|
|
Write off of
financing expenses
|
483
|
-
|
483
|
1,511
|
|
Adjusted Net
Loss
|
(1,335)
|
(7,057)
|
(4,686)
|
(24,765)
|
|
Plus Net interest
expense, net of write off of financing expenses, including interest
expense from swaps
|
1,730
|
2,533
|
7,356
|
8,685
|
|
Plus
Depreciation
|
4,303
|
4,911
|
16,987
|
18,357
|
|
Adjusted
EBITDA
|
4,698
|
387
|
19,657
|
2,277
|
|
|
|
(1)
|
The Company considers
EBITDA to represent Net Income / (Loss) plus net interest expense,
including interest expense from interest rate swaps, and
depreciation and amortization. The Company's management uses EBITDA
and Adjusted EBITDA as a performance measure. EBITDA and Adjusted
EBITDA are not items recognized by U.S. GAAP and should not be
considered as an alternative to Net Income / (Loss), Operating
Income / (Loss) or any other indicator of a Company's operating
performance required by U.S. GAAP. The Company's definition of
EBITDA and Adjusted EBITDA may not be the same as that used by
other companies in the shipping or other industries. The Company
believes that EBITDA is useful to investors because the shipping
industry is capital intensive and may involve significant financing
costs. The Company excluded non-cash items to derive the Adjusted
Net Income / (Loss) and the Adjusted EBITDA because the Company
believes that these adjustments provide additional information on
the fleet operational results.
|
|
Reconciliation of
U.S. GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
Adjusted Net
Income / (Loss) and Adjusted Earnings / (Loss) per common share
Reconciliation
(Expressed in thousands of United States
Dollars - except for shares and share data)
|
|
|
U.S. GAAP
Financial Information
|
Quarter
Ended
December 31,
2013
|
Quarter
Ended
December 31,
2014
|
Year
Ended
December 31,
2013
|
Year
Ended
December 31,
2014
|
|
Net Loss
|
(5,960)
|
(10,222)
|
(16,953)
|
(51,796)
|
|
Net Loss attributable
to non-vested share awards
|
(123)
|
(175)
|
(352)
|
(832)
|
|
Net Loss available to
common shareholders
|
(5,837)
|
(10,047)
|
(16,601)
|
(50,964)
|
|
Weighted average
number of common shares basic and diluted
|
17,162,948
|
24,223,745
|
12,639,128
|
23,326,062
|
|
Loss per common share
basic and diluted
|
(0.34)
|
(0.41)
|
(1.31)
|
(2.18)
|
|
Reconciliation of
Net Income / (Loss) to Adjusted Net Income / (Loss)
|
|
|
|
|
|
Net Loss
|
(5,960)
|
(10,222)
|
(16,953)
|
(51,796)
|
|
Write off of
capitalized expenses from contract cancellation
|
233
|
-
|
233
|
-
|
|
Impairment
loss
|
-
|
-
|
-
|
15,695
|
|
Gain from sale of
assets
|
-
|
-
|
-
|
(403)
|
|
Loss from marketable
securities
|
959
|
37
|
1,911
|
26
|
|
Loss on investment in
affiliate
|
2,852
|
2,985
|
8,620
|
8,840
|
|
Unrealized gain on
interest rate swaps
|
(175)
|
(116)
|
(835)
|
(504)
|
|
Non-cash expenses
from the amortization of share based compensation cost recognized
and share based compensation to the management company
|
273
|
259
|
1,855
|
1,866
|
|
Write off of
financing expenses
|
483
|
-
|
483
|
1,511
|
|
Adjusted Net Loss
(1)
|
(1,335)
|
(7,057)
|
(4,686)
|
(24,765)
|
|
Adjusted Net Loss
attributable to non-vested share awards
|
(27)
|
(121)
|
(98)
|
(398)
|
|
Adjusted Net Loss
available to common shareholders
|
(1,308)
|
(6,936)
|
(4,588)
|
(24,367)
|
|
Weighted average
number of common shares basic and diluted
|
17,162,948
|
24,223,745
|
12,639,128
|
23,326,062
|
|
Adjusted Loss per
common share basic and diluted (1)
|
(0.08)
|
(0.29)
|
(0.36)
|
(1.04)
|
|
|
|
(1)
|
Adjusted Net Income /
(Loss) and Adjusted Earnings / (Loss) per common share are not
items recognized by U.S. GAAP and should not be considered as
alternatives to Net Income / (Loss) and Earnings / (Loss) per
common share, respectively, or any other indicator of a Company's
operating performance required by U.S. GAAP. The Company excluded
non-cash items to derive at the Adjusted Net Income / (Loss) and
the Adjusted Earnings / (Loss) per common share basic and diluted
because the Company believes that these adjustments provide
additional information on the fleet operational results. The
Company's definition of Adjusted Net Income / (Loss) and Adjusted
Earnings / (Loss) per common share may not be the same as that used
by other companies in the shipping or other industries.
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
As of December 31,
2013 and December 31, 2014
|
|
(Expressed in
thousands of United States Dollars)
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and restricted
cash (current and non-current)
|
|
41,312
|
|
20,920
|
|
Vessels,
net
|
|
306,136
|
|
369,033
|
|
Advances for vessels
under construction
|
|
45,209
|
|
49,972
|
|
Other fixed assets,
net
|
|
596
|
|
923
|
|
Investment in
affiliate
|
|
11,309
|
|
2,956
|
|
Other
assets
|
|
14,984
|
|
17,162
|
|
|
|
|
|
|
Total
Assets
|
|
419,546
|
|
460,966
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
180,115
|
|
230,779
|
|
Total other
liabilities
|
|
6,780
|
|
7,786
|
|
Total shareholders'
equity
|
|
232,651
|
|
222,401
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
419,546
|
|
460,966
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss
|
|
For the three
months ended December 31, 2013 and 2014
|
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
Revenue
|
|
|
|
|
|
Charter
revenue
|
|
16,509
|
|
16,432
|
|
Commissions
|
|
(938)
|
|
(966)
|
|
Net
Revenue
|
|
15,571
|
|
15,466
|
|
Expenses /
(Income)
|
|
|
|
|
|
Voyage expenses,
net
|
|
1,642
|
|
3,824
|
|
Vessels operating
expenses
|
|
5,005
|
|
6,309
|
|
Management fees -
related party
|
|
1,254
|
|
1,380
|
|
Depreciation
|
|
4,303
|
|
4,911
|
|
General and
administrative expenses
|
|
3,940
|
|
3,671
|
|
Bad debt
provisions
|
|
(69)
|
|
131
|
|
Loss from contract
cancellation
|
|
569
|
|
-
|
|
Loss from marketable
securities, net
|
|
959
|
|
37
|
|
Other
income
|
|
(638)
|
|
-
|
|
Operating
Loss
|
|
(1,394)
|
|
(4,797)
|
|
Other Income /
(Expenses)
|
|
|
|
|
|
Interest and finance
costs
|
|
(2,022)
|
|
(2,301)
|
|
Loss on derivatives,
net
|
|
(41)
|
|
(120)
|
|
Interest
income
|
|
24
|
|
4
|
|
Equity in net income
/ (loss) of affiliate
|
|
342
|
|
(84)
|
|
Loss on investment in
affiliate
|
|
(2,852)
|
|
(2,985)
|
|
Foreign currency
(loss) / gain
|
|
(17)
|
|
61
|
|
Total Other Expenses,
net
|
|
(4,566)
|
|
(5,425)
|
|
Net
Loss
|
|
(5,960)
|
|
(10,222)
|
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
|
Unrealized loss on
cash flow hedges
|
|
(61)
|
|
-
|
|
Transfer of realized
loss on cash flow hedges to "Interest and finance costs"
|
|
79
|
|
-
|
|
Equity in other
comprehensive loss of affiliate
|
|
-
|
|
(1)
|
|
Unrealized loss on
change in fair value of marketable securities
|
|
(959)
|
|
(119)
|
|
Transfer of loss on
change in fair value of marketable securities to
"Loss from marketable securities, net"
|
|
959
|
|
37
|
|
Total Other
Comprehensive Income / (Loss)
|
|
18
|
|
(83)
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
(5,942)
|
|
(10,305)
|
|
|
|
|
|
|
Loss per Class A
common share, basic and diluted
|
|
($0.34)
|
|
($0.41)
|
|
Weighted average
number of Class A common shares, basic and diluted
|
|
17,162,948
|
|
24,223,745
|
|
Paragon Shipping
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss
|
|
For the years
ended December 31, 2013 and 2014
|
|
(Expressed in
thousands of United States Dollars - except for shares and share
data)
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
Revenue
|
|
|
|
|
|
Charter
revenue
|
|
59,531
|
|
58,138
|
|
Commissions
|
|
(3,274)
|
|
(3,374)
|
|
Net
Revenue
|
|
56,257
|
|
54,764
|
|
Expenses /
(Income)
|
|
|
|
|
|
Voyage expenses,
net
|
|
6,669
|
|
14,745
|
|
Vessels operating
expenses
|
|
20,759
|
|
22,666
|
|
Dry-docking
expenses
|
|
1,698
|
|
2,193
|
|
Management fees -
related party
|
|
5,874
|
|
6,266
|
|
Depreciation
|
|
16,987
|
|
18,357
|
|
General and
administrative expenses
|
|
10,764
|
|
8,708
|
|
Impairment
loss
|
|
-
|
|
15,695
|
|
Bad debt
provisions
|
|
-
|
|
131
|
|
Gain from sale of
assets
|
|
-
|
|
(403)
|
|
Gain from vessel
early redelivery
|
|
(2,268)
|
|
-
|
|
Loss from contract
cancellation
|
|
569
|
|
-
|
|
(Gain) / loss from
marketable securities, net
|
|
(1,202)
|
|
26
|
|
Other (income) /
expenses
|
|
(638)
|
|
211
|
|
Operating
Loss
|
|
(2,955)
|
|
(33,831)
|
|
Other Income /
(Expenses)
|
|
|
|
|
|
Interest and finance
costs
|
|
(7,440)
|
|
(9,324)
|
|
Loss on derivatives,
net
|
|
(95)
|
|
(388)
|
|
Interest
income
|
|
531
|
|
21
|
|
Equity in net income
of affiliate
|
|
1,652
|
|
471
|
|
Loss on investment in
affiliate
|
|
(8,620)
|
|
(8,840)
|
|
Foreign currency
(loss) / gain
|
|
(26)
|
|
95
|
|
Total Other Expenses,
net
|
|
(13,998)
|
|
(17,965)
|
|
Net
Loss
|
|
(16,953)
|
|
(51,796)
|
|
|
|
|
|
|
Other
Comprehensive Income / (Loss)
|
|
|
|
|
|
Unrealized gain on
cash flow hedges
|
|
131
|
|
131
|
|
Transfer of realized
loss on cash flow hedges to "Interest and finance costs"
|
|
312
|
|
99
|
|
Equity in other
comprehensive income of affiliate
|
|
77
|
|
16
|
|
Unrealized loss on
change in fair value of marketable securities
|
|
(2,064)
|
|
(163)
|
|
Transfer of loss on
change in fair value of marketable securities to
"(Gain) / loss from marketable securities, net"
|
|
1,911
|
|
26
|
|
Total Other
Comprehensive Income
|
|
367
|
|
109
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
(16,586)
|
|
(51,687)
|
|
|
|
|
|
|
Loss per Class A
common share, basic and diluted
|
|
($1.31)
|
|
($2.18)
|
|
Weighted average
number of Class A common shares, basic and diluted
|
|
12,639,128
|
|
23,326,062
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/paragon-shipping-inc-reports-fourth-quarter-and-year-ended-december-31-2014-results-300058751.html
SOURCE Paragon Shipping Inc.