TOP Ships Q2 2010 Results

TOP Ships Inc. (NasdaqGS:TOPS) announced its financial results for the second quarter and first half of 2010. For the three months ended June 30, 2010, the Company reported:
- Net loss of $1.8 million or $0.06 per share.
- Operating income of $4.1 million.
- Revenues of $21.8 million.

For the six months ended June 30, 2010, the Company reported:
- Net loss of $0.9 million or $0.03 per share.
- Operating income of $9.5 million.
- Revenues of $44.9 million.

Evangelos J. Pistiolis, President and Chief Executive Officer of TOP Ships Inc., commented:
We are pleased to report a positive operating income for the second quarter and the first six months of 2010, which is a result of our committed charter portfolio. Net profit would have been marginally positive for the second quarter and $1.8 million for the first six months of 2010, respectively, before drydocking costs.

We are also pleased to report that we expect to complete an agreement with DVB Bank to restructure the bridge loan, which was due to be repaid on July 30, 2010. We expect that the agreement will involve a partial repayment and new maturity date. We believe that our relationship with DVB Bank remains excellent.

The visibility of our cash flows has been further enhanced following our entry into a 3-year time charter contract for the M/V Cyclades with a well-established charterer at a daily rate of $20,000. The charter will commence upon redelivery of the vessel from its present charterer.

Outstanding Indebtedness
As of June 30, 2010, we had total indebtedness under senior secured and unsecured credit facilities with our lenders of $383.9 million (excluding unamortized deferred financing fees of $4.1 million) with maturity dates from 2010 through 2019.

We expect to complete an agreement with DVB Bank in relation to restructuring the DVB bridge loan which was due to be repaid on July 30, 2010.

As of June 30, 2010, we had no non-restricted cash.

Loan Covenants and Discussions with Banks
As of June 30, 2010, we were in breach of loan covenants relating to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), overall cash position (minimum liquidity covenants), adjusted net worth, net asset value and asset cover with certain banks. As a result of these covenant breaches with certain banks, we have classified all of our debt and financial instruments as current. The amount of longterm debt and financial instruments that have been reclassified and presented together with current liabilities amounts to $333.7 million and $10.3 million, respectively.

We have been in discussions with all of our banks in relation to these covenant breaches as well as covenant breaches previously waived, for which waiver periods expired as of the end of the first quarter. We have obtained waivers from Emporiki Bank for all covenant breaches until June 30, 2011.