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TOP Ships Reports Fourth Quarter and Fiscal Year 2009 Financial Results |
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Friday, 12 March 2010 |
 TOP Ships Inc. yesterday announced its financial results for the fourth quarter and the fiscal year ended December 31, 2009. For the fourth quarter of 2009, the Company reported:
-- A net loss of $35.9 million or $1.20 per share. The results of the fourth quarter of 2009 include an impairment charge of $36.6 million relating to the write-down of the older two of the Company's tanker vessels to their fair market values. Excluding the impairment
charge, the net loss would have amounted to net income of $0.7 million, or $0.02 per share.
-- An operating loss of $31.7 million. Excluding the impairment charge
of $36.6 million operating loss would have amounted to operating income
of $4.9 million
-- Revenues of $24.4 million.
For the year ended December 31, 2009, the Company reported:
-- A net loss of $50.2 million, or $1.78 per share. Excluding net expenses of $12.2 million, relating to the termination of leases and the impairment charge of $36.6 million, the net loss would have amounted to $1.4 million, or $0.05 per share.
-- An operating loss of $34.2 million. Excluding net expenses of $12.2 million, relating to the termination of leases and the impairment charge of $36.6 million, the operating loss would have amounted to operating income of $14.6 million.
-- Revenues of $108.0 million.
Evangelos J. Pistiolis, President and Chief Executive Officer of TOP
Ships Inc., commented:
During 2009, we reached two very important milestones in the history of
our company under a very tough financial environment for the global
economy and the shipping industry:
-- We completed our newbuilding program by taking delivery of six
product tankers, from a well-established Korean yard, all of which we immediately chartered out at fixed rates for periods that range
between 7 and 10 years. These charters have been agreed on a bareboat basis, which not only reduces our long-term market risk relating to the vessels, but also eliminates our operational risk for that period.
-- We terminated the charters on the last five chartered-in vessels in
our fleet. These vessels were product tankers and their daily cost,
taking into account lease hire payments and operating expenses, was significantly higher than the market rates that have been prevailing
in the product tanker segment.
We took an impairment charge during the fourth quarter, on our two older
tankers in our fleet, due to the fact that their present time charters
expire during the current year, and we expect that future charters will
be at lower rates given the market conditions that have been prevailing
in the product tanker segment.
I would also like to bring to everyone's attention, the impeccable
utilization rates of the last quarter of 2009. We will do our best to
maintain these rates going forward.
Looking into the future, we believe that we offer a solid growth
platform due to the following characteristics:
-- We do not have any capital commitments.
-- We have a very young owned fleet made up of 13 vessels; eight
product tankers with an average age of 2.9 years and five dry bulk vessels
with an average age of 8.9 years.
-- We have a diverse charter portfolio with significant value. 84% of total ship days until the end of 2011 are under fixed employment and the gross revenue that we expect to receive from these charters
amounts to approximately $151 million. Looking further into the future, 75%
of our total ship days until the end of 2012 are under fixed employment and the gross revenue that we expect to receive from these charters amounts to approximately $199 million.
Outstanding Indebtedness
As of December 31, 2009, we had total indebtedness under senior secured
and unsecured credit facilities with our lenders of $404.3 million
(excluding unamortized deferred financing fees of $5.2 million) with
maturity dates from 2010 through 2019.
Loan Covenants and Discussions with Banks
As of the date of this release, we have received waivers and signed
amendments to our loan agreements with all five of our lending banks in
relation to certain loan covenant breaches that have occurred since
December 31, 2008. However, as of December 31, 2009, we were in breach
of additional covenants with all of our banks, which had not been
previously waived. These breaches relate to EBITDA, our overall cash
position (minimum liquidity covenants), adjusted net worth and the asset
value cover of our product tankers with certain banks.
As of the date of this release, we are in discussions with all banks to
receive waivers for these breaches. We expect that our lenders will not
demand payment of our loans before their maturity, provided that we pay
loan installments and accumulated or accrued interest as they fall due
under the existing credit facilities.
Due to these breaches the Company expects to classify all of its debt
and swap facilities as current in its audited annual financial
statements for the year ended December 31, 2009.
Source: Top Ships
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