|
Limassol, Cyprus, March 8, 2023 Castor Maritime Inc. (NASDAQ: CTRM) ("Castor" or the "Company"), a diversified global shipping company, today announced its results for the three months and year ended December 31, 2022. Highlights of the Fourth Quarter Ended December 31, 2022: • Total Vessel Revenues: $69.3 million for the three months ended December 31, 2022, as compared to $60.0 million for the three months ended December 31, 2021, or a 15.5% increase; • Net income: $33.7 million for the three months ended December 31, 2022, as compared to $29.2 million for the three months ended December 31, 2021, or a 15.4% increase; • Earnings (basic) per common share: $0.36 per share for the three months ended December 31, 2022, as compared to $0.18 per share for the three months ended December 31, 2021; • EBITDA(1): $42.9 million for the three months ended December 31, 2022, as compared to $36.1 million for the three months ended December 31, 2021; • Cash and restricted cash of $152.3 million as of December 31, 2022, as compared to $43.4 million as of December 31, 2021; and • The spin-off of our Aframax/LR2 and Handysize tanker segments to a new Nasdaq-listed company, Toro Corp. was completed on March 7, 2023. Earnings Highlights of the Year Ended December 31, 2022: • Total Vessel Revenues: $262.1 million for the year ended December 31, 2022, as compared to $132.0 million for the year ended December 31, 2021, or a 98.6% increase; • Net income: $118.6 million for the year ended December 31, 2022, as compared to net income of $52.3 million for the year ended December 31, 2021, or a 126.8% increase; • Earnings (basic) per common share: $1.25 per share for the year ended December 31, 2022, as compared to $0.48 per share for the year ended December 31, 2021; and • EBITDA(1): $152.8 million for the year ended December 31, 2022, as compared to $69.9 million for the year ended December 31, 2021 (1) EBITDA is not a recognized measure under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Management Commentary: Mr. Petros Panagiotidis, Chief Executive Officer of Castor commented: "2022 was a record year for the net earnings of Castor aided, mainly, by the higher Aframax/LR2 and Handysize vessel earnings following the timely acquisitions we made in the tanker sector during 2021. We enjoyed strong cash flows as our operating cash flow more than doubled in 2022 compared to 2021 to $123.8 million and our balance sheet is strong, positioning us to further pursue our growth strategy in 2023. The Aframax/LR2 and Handysize tanker segments further improved their performance with combined operating income for the twelve months of 2022 of $53.7 million (of which $26.1 million was generated in the fourth quarter of 2022), and the combined book value of these segments' assets was $157.5 million as of December 31, 2022, while our dry bulk segment continued to be robust with operating income for the twelve months of 2022 of $80.1 million (of which $12.4 million was generated in the fourth quarter of 2022), and the book value of its assets was $339.6 million as of December 31, 2022. On March 7, 2023, we completed the previously announced spin-off of our Aframax/LR2 and Handysize tanker segments through the distribution of all of the common shares of Toro Corp. ("Toro") to our shareholders of record as of February 22, 2023 (the "Spin-Off"). We believe the Spin-Off, which represents a substantial payment by Castor to its shareholders, is an important strategic step that will establish Toro as a "pure play" tanker business at a time of increased focus on energy supplies and as the tanker shipping market enjoys strong supply demand fundamentals, as demonstrated especially in the second half of 2022. Castor has retained 20 dry bulk and two container vessels, totaling a sizeable fleet of 22 vessels with an average age of 13.7 years enjoying a strong balance sheet. The dry bulk fundamentals remain healthy given the historically low order book and the improved outlook of the Chinese economy." Earnings Commentary: Fourth Quarter ended December 31, 2022, and 2021 Results Total vessel revenues for the three months ended December 31, 2022, increased to $69.3 million from $60.0 million in the same period of 2021. This variation was mainly driven by (i) the improved Aframax/LR2 and Handysize tanker charter rates and pool earnings that our vessels earned, and (ii) the increase in our Available Days (defined below) from 2,433 in the three months ended December 31, 2021, to 2,522 in the three months ended December 31, 2022, following the expansion of our fleet. The decrease in voyage expenses to $4.9 million in the three months ended December 31, 2022, from $5.8 million in the same period of 2021, is mainly associated with decreased port costs and bunkers consumption for our Aframax/LR2 tankers, attributable to their gradual entry during the fourth quarter of 2022 into the V8 Plus Pool, a pool of Aframax tankers aged fifteen (15) years or more. When our vessels operate in pools, we incur no third-party brokerage commissions and port costs are handled by our pool operators. The increase in vessel operating expenses by $1.3 million, from $14.8 million in the three months ended December 31, 2021 to $16.1 million in the same period of 2022, as well as the increase in vessels' depreciation and amortization costs by $1.5 million, from $5.5 million in the three months ended December 31, 2021 to $7.0 million in the same period of 2022, mainly reflect the increase in our Ownership Days following the expansion of our fleet. General and administrative expenses in the three months ended December 31, 2022, amounted to $2.6 million, whereas, in the same period of 2021 general and administrative expenses totaled to $1.2 million. This increase stemmed from higher corporate fees primarily due to the Toro Spin-Off and a higher fee paid to Castor Ships, our manager, following entry into an amended and restated master management agreement with Castor Ships with effect from July 1, 2022. Management fees in the three months ended December 31, 2022, amounted to $2.5 million, whereas in the same period of 2021, management fees totaled $2.2 million. This increase in management fees is mainly due to the increase in our Ownership Days for which our managers charge us a daily management fee, stemming from the expansion of our fleet and the aforementioned amendments to our management agreements with Castor Ships. During the three months ended December 31, 2022, we incurred net interest costs and finance costs amounting to $1.9 million compared to $1.1 million during the same period in 2021. The increase is due to our higher weighted average interest rate, as well as the increase in our weighted average indebtedness, during the three months ended December 31, 2022, as compared with the same period of 2021. Recent Financial Developments Commentary: Equity update From January 1, 2022 to date, no issuances of common shares have taken place. As of March 6, 2023, we had 94,610,088 common shares issued and outstanding. Liquidity/ Financing/ Cash flow update Our consolidated cash position (including our restricted cash) as of December 31, 2022 increased by $108.9 million to $152.3 million, as compared with our cash position on December 31, 2021. During the year ended December 31, 2022, our cash position improved mainly as a result of: (i) $123.8 million of net operating cash flows generated, (ii) $12.6 million of net proceeds from the sale of M/T Wonder Arcturus to an unaffiliated third-party buyer and (iii) net financing cash inflows of $76.5 million following our entry into two secured loan facilities in January 2022 and November 2022. During the year ended December 31, 2022 we used $76.4 million to fund the acquisitions of the M/V Magic Callisto, M/V Ariana A, M/V Gabriela A and other capital expenditures relating to our fleet, whereas $27.5 million were used for scheduled principal repayments on our debt. As of December 31, 2022, our total debt, gross of unamortized deferred loan fees, was $153.7 million of which $32.5 million is repayable within one year, as compared to $103.8 million of gross total debt as of December 31, 2021. Recent Business Developments Commentary: Completion of the tanker business Spin-Off On March 7, 2023, we completed our previously announced Spin-Off of our tanker fleet comprising one Aframax, five Aframax/LR2 and two Handysize tankers. In the Spin-Off distribution, Castor shareholders received one common share of Toro for every ten Castor common shares held at the close of business on February 22, 2023. Additional information about Toro and the Spin-Off transaction can be found in the Toro registration statement filed pursuant to the Securities Exchange Act of 1934 on Form 20-F, which is available at www.sec.gov. Full report About Castor Maritime Inc. Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of oceangoing cargo vessels. Castor owns a fleet of 22 vessels, with an aggregate capacity of 1.7 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 12 Panamax dry bulk vessels, as well as 2 2,700 TEU containership vessels. Castor Maritime press release 
|
