Globus Maritime Reports Financial Results for the Third Quarter & Nine Months Ended September 30, 2011
Athens, Greece, November 21, 2011
Globus Maritime Limited ("Globus," the “Company," “we,” or “our”), (NASDAQ: GLBS), a dry bulk shipping company, today reported its unaudited consolidated operating and financial results for the three-month and nine-month periods ended September 30, 2011.
• Revenue increased by 4.5% to $9.2 million;
• Net Revenue increased by 3.8% to $8.3 million;
• Adjusted EBITDA decreased by 8.9% to $5.1 million; adjusted EBITDA is a measure not in accordance with generally accepted accounting principles (“GAAP”). See a later section of this press release for a reconciliation of non-GAAP financial measures;
• Total comprehensive income decreased by 47.8% to $1.2 million;
• Basic earnings per share of $0.12, calculated on 10,039,794 weighted average number of shares compared to $0.32, calculated on 7,240,958 weighted average number of shares during the same period in 2010;
• Average Time Charter Equivalent per vessel per day rate (“TCE”) of $14,912 with an average 6.2 vessels, versus an average TCE of $18,234 with an average 5.0 vessels operating during the same period in 2010. A calculation of the TCE is provided in a later section of this press release;
• Fleet utilization was 95.9%; fleet utilization is further defined in a later section below.
Summary of Nine Months 2011 (“9M-11”) Results
• Revenue increased by 24.5% to $25.4 million;
• Net Revenue increased by 21.4% to $22.7 million;
• Adjusted EBITDA increased by 18.3% to $14.2 million;
• Total comprehensive income increased by 35.3% to $4.6 million;
• Basic earnings per share of $0.46, calculated on 10,039,724 weighted average number of shares compared to $0.47, calculated on 7,240,172 weighted average number of shares during the same period in 2010; ? Average TCE of $15,910 with an average 5.4 vessels operating, versus an average TCE of $19,316 with an average of 3.7 vessels operating during the same period in 2010;
• Fleet utilization was 98.1% versus 99.1% during the same period in 2010.
Dividend Declaration
On October 20, 2011, Globus’ Board of Directors declared a quarterly cash dividend of $0.16 per common share for the third quarter of 2011. This dividend was paid on or about November 9, 2011, to shareholders of record as of October 31, 2011, at which time the Company had 10,044,556 common shares outstanding.
The Company is continuing the policy of paying a variable quarterly dividend in excess of 50% of the net income of the previous quarter, subject to any reserves the board of directors may from time to time determine are required. The declaration and payment of dividends, if any, will always be subject to the discretion of the board of directors of the Company, and the amount of dividends paid in any period is not indicative of the amount that may be paid in the future. The timing and amount of any dividends declared will depend on, among other things: our earnings, financial condition and anticipated cash requirements and availability, additional acquisitions of vessels, restrictions in our debt arrangements, the provisions of Marshall Islands law affecting the payment of distributions to shareholders, required capital and drydocking expenditures, reserves established by our board of directors, increased or unanticipated expenses, a change in our dividend policy, additional borrowings or future issuances of securities and other factors, many of which will be beyond our control. We can give no assurance that dividends will be paid in the future.
Liquidity and Capital Resources as of September 30, 2011
In June 2011 we signed a new bank loan with DVB Bank SE for a secured term loan to finance our two recent acquisitions. One subsidiary drew $19.0 million upon the delivery of the “Moon Globe” in June, while another subsidiary drew $18.0 million upon the delivery of the “Sun Globe” in September 2011.
During the third quarter of 2011 we repaid the following principal amounts to our banks:
1) a regular installment of $0.5 million to Deutsche Schiffsbank;
2) a regular installment of $0.4 million to DVB Bank;
3) a voluntary prepayment of $14.5 million towards the revolving facility with Credit Suisse.
On September 30, 2011:
A) our cash and bank balances and bank deposits were $8.0 million;
B) our outstanding bank debt was $112.7 million while an amount up to $14.5 million remained undrawn and available under the Credit Suisse revolving facility;
C) we were in compliance with our loan covenants.
Net cash used in investing activities during the nine months of 2011 included the $30.3 million paid for the acquisition of the “Sun Globe” and the $31.4 million paid for the “Moon Globe.” In June 2011 Globus completed a follow-on offering of 2,750,000 common shares. The Company has 10,044,556 common shares issued and outstanding as of today. In July 2011 Globus paid the dividend for the second quarter 2011, amounting to $1.2 million, to shareholders on record on June 17, 2011.
Management Commentary
George Karageorgiou, President and Chief Executive Officer of Globus Maritime Limited, said: “We are happy to report profitable results for the three-month and nine-month periods ended September 30, 2011. We have declared and paid a cash dividend of $0.16 per share.
“The operating environment during the last few months continues to be adverse as the market is trying to absorb the new tonnage, mitigated by non-deliveries which continue to be around 34% of the order book, and scrapping that is accelerating. Despite the difficult market conditions, we have the ability to take advantage of accretive fleet expansion opportunities based on the strength of our balance sheet. Globus has established a track record of aggressive yet prudent fleet development in line with the market cycle.
“Thanks to the modern fleet, the efficient, in-house, cost effective technical and commercial management, the moderate leverage, and our experienced management team, we believe that Globus is insulated from much of the current market turbulence, allowing us to grow the Company.”
Elias Deftereos, Chief Financial Officer, added:
“At the end of September we were in compliance with all our loan covenants, while our Net Debt to Total Capitalization (Net Debt plus Total Equity) stood at 42.9%, a moderate figure for our industry. Today, our outstanding debt amounts to $112.7 million. Furthermore, unless we re-draw funds under the Credit Suisse revolving facility, our scheduled principal debt repayments for the remainder of 2011, 2012 and 2013 are $1.4, $5.4 and $13.4 million respectively.
“Our results for the third quarter 2011 reflect the weakness in the global marketplace for the transportation of dry bulk cargo. Despite this, we remain a profitable company, able to reward our shareholders with dividends. As we continue to expand the Company's future earnings power, we remain dedicated to maintaining an appropriate capital structure for the benefit of shareholders.” Fleet Development In September 2011 we took delivery of the Supramax “Sun Globe”, for a purchase price of $30.3 million.
Full report at: www.globusmaritime.gr
About Globus Maritime Limited
Globus is an integrated dry bulk shipping company that provides marine transportation services worldwide and presently owns, operates and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. Globus’ subsidiaries own and operate seven vessels with a total carrying capacity of 452,886 DWT and a weighted average age of 4.8 years as of September 30, 2011.
Globus Maritime Limited press release