Seanergy Maritime Holdings Corp. announced its operating results for the third quarter and nine month period ended September 30, 2009.
Third Quarter 2009 Financial Highlights:
-- Net Revenues of $22.4 million
-- EBITDA of $23.1 million for the three months ended September 30, 2009.
-- Net Income of $14 million, or $0.57 per basic share and $0.46 per diluted share, based on weighted average common shares outstanding of 24,580,378 basic, and 30,386,931 diluted
-- Fleet utilization of 92.2%
-- Following the acquisition of BET in August 2009, the company operates a fleet of 11 vessels with a total capacity of 1,043,296 dwt.
Nine Months 2009 Financial Highlights:
-- Net Revenues of $70.7 million.
-- EBITDA of $60.7 million for the nine months ended September 30, 2009.
-- Net Income of $33.3 million, or $1.44 per basic share and $1.13 per diluted share, based on weighted average common shares outstanding of 23,109,073 basic, and 29,420,518 diluted.
-- Fleet utilization of 87.4%.
Dale Ploughman, the company's Chief Executive Officer, stated: "Despite the continued market volatility, we are pleased to report strong results for the third quarter of 2009, our fourth consecutive profitable quarter since the completion of our business combination in August 2008. These results reflect our strong cash flow, the high fleet utilization and our operational efficiency on the cost side.
"In the third quarter of 2009, we doubled our controlled fleet with the acquisition of BET, which was achieved with minimal cash outlay and without sacrificing our strong balance sheet. In addition, we reinforced our capital structure with the conversion of the $28.25 million promissory note issued in our business combination into common stock, which enhances our ability to pursue additional accretive fleet expansion taking advantage of opportunities that may come up in today's market conditions.
"We expect the dry bulk market to continue to experience volatility for the remainder of 2009 and in 2010. Stimulus packages passed by major world economies helped revive global trade growth from its collapse at the beginning of 2009. Despite the challenges facing major world economies in the U.S. and Europe, which appear to be recovering at a slower pace, we believe that demand for dry bulk commodities from the developing markets, especially China and India, will continue as a result of domestic infrastructure development in those countries. The significant orderbook remains a concern, but in the first nine months of 2009 the slippage between scheduled and actual deliveries of newbuildings exceeded 35%. We believe that a continuation of this trend, coupled with increased scrapping, should have a positive impact on fleet supply, which, however, is difficult to quantify. Therefore, we expect freight rates to remain volatile, continuing to put pressure on asset values which, particularly in respect to the smaller units, are too high in relation to the freight market. With our experienced management, strong balance sheet, high liquidity and significant charter coverage of 76% for 2010, we believe that Seanergy is well positioned to take advantage of opportunities to expand its fleet, further enhancing shareholder value for the longer term."
Christina Anagnostara, the Company's Chief Financial Officer, stated: "Following the acquisition of BET, we operate a fleet with a total capacity of 1,043,296 dwt, which represents a 229% increase as compared to the previous quarter. The acquisition is immediately earnings accretive, improving our margins and cash flow, based on the charters currently in place for the vessels acquired. We have time charter agreements for nine of our 11 vessels, providing a stable base of revenue and cash flow. Under two of these charters, we have also negotiated to receive 50% of adjusted profits in addition to the fixed chartered rate, which provides the Company the ability to benefit from an improving future rate environment. We are pleased to deliver strong results with an average TCE rate of $42,127 for the nine months ended September 30, 2009. Our net income margin was approximately 45% of TCE and our free cash flow margin was approximately 65% of TCE.
"Our cash reserves were $64 million as of September 30, 2009, reflecting the $36.4 million in cash from operations we generated during the period. Our cash reserves enable us to meet scheduled debt repayments and capital expenditures. Our net debt to book capitalization stands at 52%, a moderate figure for our industry.
"To date we have completed the dry dockings of the African Zebra, Hamburg Max and BET Commander. We have no additional scheduled dry dockings this year."