Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

Seanergy Maritime Holdings Corp. Reports Financial Results for the First Quarter Ended March 31, 2014

ATHENS, GREECE -- (Marketwired) -- 07/03/14 -- Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) announced today its financial results for the first quarter ended March 31, 2014.

Financial Highlights:

  • EBITDA of $84.7 million
  • Net income of $83.5 million
  • Net revenues of $2.0 million
  • Indebtedness of $NIL
  • Total shareholder's equity of $2.6 million

Management Discussion:

Stamatis Tsantanis, the Company's Chairman & Chief Executive Officer, stated:
"In the first quarter of 2014, we successfully completed a significant financial overhaul of our Company, which resulted in the elimination of all our outstanding indebtedness. Since the beginning of this rigorous restructuring process in 2012, we extinguished approximately $346 million of secured liabilities and all of the Company's guarantees were fully released. This effort was achieved without entering into any court protection, without any dilution of the Company's shareholders and without any interruption of the listing status of the Company's common shares on the Nasdaq Stock Market.

"Additionally, in June 2014, as part of the Company's balance sheet strengthening efforts, certain of our major shareholders have contributed the amount of $1.1 million in return for newly issued common shares of Seanergy. We consider this positive development as a strong vote of confidence in our Company and its prospects.

"Furthermore, as previously announced, we have entered into a strategic agreement with companies controlled by our major shareholders, whereby four modern Capesize vessels will be contributed in the Company in exchange for newly issued common shares. Pursuant to this agreement, the transaction is expected to close in the third quarter of this year.

"After the Company's debt restructuring and cash contribution, and upon the contribution of the Capesize vessels, we believe that Seanergy's strengthened balance sheet will ensure the long-term compliance with the Nasdaq listing standards and will provide a significant source of capital for the expansion of our Company.

"Looking forward, we believe that most market participants are optimistic about a dry bulk shipping recovery materializing from the fourth quarter of 2014 onwards. We are optimistic that our Company's positioning, subject to the finalization of the vessels' contribution, will allow us to capitalize on a rising spot rate environment and will facilitate further growth."

First Quarter 2014 Financial Results:

Net Revenues
Net revenues in the first quarter of 2014 were equal to $2.0 million, compared to $5.6 million in the same quarter in 2013, a reduction of 64%. The decrease in net revenues reflects the operation of a smaller fleet, as an average of 3.0 vessels were owned in the first quarter of 2014, compared to 9.3 vessels in the corresponding quarter of 2013.

EBITDA and Net Income
EBITDA was $84.7 million for the first quarter of 2014, as compared to EBITDA of $3.8 million for the first quarter of 2013.

For the first quarter of 2014, net income amounted to $83.5 million, or $6.98 earnings per basic and diluted share, compared to a net income of $1.1 million, or $0.09 earnings per basic and diluted share, in the same quarter of 2013, based on weighted average common shares outstanding of 11,959,161 and 11,959,271 basic and diluted for 2014 and 11,958,063 and 11,959,282 basic and diluted for 2013, respectively.

The significant increase in EBITDA and in net income quarter-on-quarter, is largely attributable to the gain of $85.5 million that was realized on the sale of the Company's last four vessels in the first quarter of 2014.

Recent Developments:

Cash Contribution by Major Shareholders
On June 24, 2014, certain of the Company's existing major shareholders agreed to contribute the amount of $1.134 million in exchange for 1,890,000 common shares, which were issued on June 27, 2014. The purchasers also received customary registration rights in respect of the shares issued in the transaction. The transaction was approved by an independent committee of the Company's Board of Directors, which obtained a fairness opinion from an independent financial firm for this transaction.

Compliance with Nasdaq Continued Listing Requirements
On May 6, 2014, the Company announced that the Nasdaq Hearings Panel confirmed it has regained compliance with the continued listing requirements of the Nasdaq Capital Market.

In a prior decision dated January 9, 2014, the Nasdaq Hearings Panel had granted the Company's request for continued listing through April 28, 2014, subject to certain conditions, including that the Company would regain compliance with the minimum shareholders' equity requirement. As of May 1, 2014, the Nasdaq Hearings Panel closed this matter, since the Company regained compliance with the minimum shareholders' equity requirement and all other requirements for continued listing on the Nasdaq Capital Market.

Strategic Agreement for the Contribution of Four Capesize Vessels
On April 29, 2014, the Company announced that certain of the Company's major shareholders will contribute four Capesize vessels. The transaction was approved by an independent committee of the Company's Board of Directors, which obtained a fairness opinion from an independent financial firm for this transaction. The closing of the transaction, which is subject to standard closing conditions and lenders' consents, was initially expected to take place prior to June 30, 2014. The closing date has been extended pursuant to the terms of the relevant share purchase agreement, and is now expected to occur prior to September 30, 2014.

Following the completion of the transaction, the Company will have a modern fleet of four Capesize dry bulk carriers with a combined cargo-carrying capacity of approximately 682,723 dwt and an average fleet age of about 7.5 years. Upon delivery, the vessels are expected to be employed in the spot market or under index-linked charter agreements and consequently the Company is expected to start earning revenue immediately upon completion of the transaction.

Fleet Data:

----------------------------------------------------------------------------
                                     Three Months Ended  Three Months Ended
                                       March 31, 2014      March 31, 2013
----------------------------------------------------------------------------
Fleet Data
----------------------------------------------------------------------------
Average number of vessels (1)                        3.0                 9.3
----------------------------------------------------------------------------
Ownership days (2)                                   268                 836
----------------------------------------------------------------------------
Available days (3)                                   268                 836
----------------------------------------------------------------------------
Operating days (4)                                   142                 704
----------------------------------------------------------------------------
Fleet utilization (5)                              53.0%               84.2%
----------------------------------------------------------------------------
Fleet utilization excluding
drydocking off-hire days (6)                       53.0%               84.2%
----------------------------------------------------------------------------
Average Daily Results
----------------------------------------------------------------------------
TCE rate (7)                                       5,296               6,004
----------------------------------------------------------------------------
Vessel operating expenses (8)                      2,634               4,146
----------------------------------------------------------------------------
Management fee (9)                                   455                 344
----------------------------------------------------------------------------
Total vessel operating expenses (10)               3,089               4,490
----------------------------------------------------------------------------

(1)   Average number of vessels is the number of vessels that constituted
      the Company's fleet for the relevant period, as measured by the sum of
      the number of days each vessel was a part of the Company's fleet
      during the relevant period divided by the number of calendar days in
      the relevant period.

(2)   Ownership days are the total number of days in a period during which
      the vessels in a fleet have been owned. Ownership days are an
      indicator of the size of the Company's fleet over a period and affect
      both the amount of revenues and the amount of expenses that the
      Company recorded during a period.

(3)   Available days are the number of ownership days less the aggregate
      number of days that vessels are off-hire due to major repairs, dry
      dockings or special or intermediate surveys. The shipping industry
      uses available days to measure the number of ownership days in a
      period during which vessels should be capable of generating revenues.
      During the quarters ended March 31, 2014 and 2013, the Company did not
      incur any off-hire days for vessel scheduled dry docking.

(4)   Operating days are the number of available days in a period less the
      aggregate number of days that vessels are off-hire for any reason,
      including unforeseen circumstances. The shipping industry uses
      operating days to measure the aggregate number of days in a period
      during which vessels actually generate revenues.

(5)   Fleet utilization is the percentage of time that our vessels were
      generating revenue, and is determined by dividing operating days by
      ownership days for the relevant period.

(6)   Fleet utilization excluding drydocking off-hire days is calculated by
      dividing the number of the fleet's operating days during a period by
      the number of available days during that period. The shipping industry
      uses fleet utilization excluding drydocking off-hire days to measure a
      Company's efficiency in finding suitable employment for its vessels
      and excluding the amount of days that its vessels are off-hire for
      reasons such as scheduled repairs, vessel upgrades, or dry dockings or
      special or intermediate surveys.

(7)   TCE rates are defined as our net revenues less voyage expenses during
      a period divided by the number of our operating days during the
      period, which is consistent with industry standards. Voyage expenses
      include port charges, bunker (fuel oil and diesel oil) expenses, canal
      charges and other commissions.

(In thousands of US Dollars, except operating days and daily time charter equivalent rate)

                                      Three Months Ended March 31,
                                      ----------------------------
                                          2014            2013
                                      ------------    ------------
Net revenues from vessels                 2,010           5,645
Voyage expenses                           1,258           1,418

Net operating revenues                     752            4,227
                                      ============    ============

Operating days                             142             704

Daily time charter equivalent rate        5,296           6,004

(8)   Average daily vessel operating expenses, which include crew costs,
      provisions, deck and engine stores, lubricating oil, insurance,
      maintenance and repairs, are calculated by dividing vessel operating
      expenses by ownership days for the relevant time periods:

(In thousands of US Dollars, except ownership days and daily vessel operating expenses)

                                         Three Months Ended March 31,
                                        ------------------------------
                                             2014             2013
                                        ------------------------------
Operating expenses                           706             3,466
Ownership days                               268              836

Daily vessel operating expenses             2,634            4,146

 (9)  Daily management fees are calculated by dividing total management fees
      by ownership days for the relevant time period.

 (10) Total Vessel Operating Expenses ("TVOE") is a measurement of total
      expenses associated with operating the vessels. TVOE is the sum of
      vessel operating expenses and management fees. Daily TVOE is
      calculated by dividing TVOE by fleet ownership days for the relevant
      time period.

EBITDA Reconciliation:

(In thousands of US Dollars)

----------------------------------------------------------------------------
                                                  Three Months  Three Months
                                                   Ended March   Ended March
                                                    31, 2014      31, 2013
----------------------------------------------------------------------------
Net Income                                           83,505         1,065
----------------------------------------------------------------------------
Plus: Interest and finance costs, net (including
 interest income)                                     1,204         2,162
----------------------------------------------------------------------------
Plus: Income taxes                                      0            34
----------------------------------------------------------------------------
Plus: Depreciation and amortization                     0            581
----------------------------------------------------------------------------
EBITDA                                               84,709         3,842
----------------------------------------------------------------------------

EBITDA consists of earnings before net interest and finance cost, taxes, depreciation and amortization. EBITDA is not measurement of financial performance under accounting principles generally accepted in the United States of America, or U.S. GAAP and does not represent cash flow from operations. EBITDA is presented solely as supplemental disclosure because management believes that it is common measure of operating performance in the shipping industry.

Conference Call and Webcast: July 3, 2014
As announced, the Company's management team will host a conference call today, July 3, 2014, at 09:00 a.m. ET to present the Company's financial results.

Conference Call details
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301 (from outside the US). Please quote "Seanergy."

A replay of the conference call will be available until Thursday, July 10, 2014. The United States replay number is 1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access code required for the replay is: 2094507#.

Audio Webcast
There will also be a simultaneous live webcast of the conference call over the Internet, through the Seanergy website (www.seanergymaritime.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.


                      Seanergy Maritime Holdings Corp.
              Unaudited Condensed Consolidated Balance Sheets
                    March 31, 2014 and December 31, 2013
                        (In thousands of US Dollars)

                                                    March 31,     Dec 31,
                                                       2014         2013
                                                   -----------  -----------
ASSETS
  Cash and restricted cash                               1,530        3,075
  Vessels, net                                               -       60,141
  Other assets                                           1,744        3,134
                                                   -----------  -----------
TOTAL ASSETS                                             3,274       66,350
                                                   ===========  ===========

LIABILITIES AND EQUITY
  Total debt                                                 -      134,911
  Due to related parties                                   150        9,049
  Accrued interest                                           -        9,480
  Total other liabilities                                  495        3,605
  Total shareholder's equity                             2,629      (90,695)
                                                   -----------  -----------
TOTAL LIABILITIES AND EQUITY                             3,274       66,350
                                                   ===========  ===========



                      Seanergy Maritime Holdings Corp.
           Unaudited Condensed Consolidated Statements of Income
             For the three months ended March 31, 2014 and 2013
  (In thousands of US Dollars, except for share and per share data, unless
                              otherwise stated)

                                                     Three months ended
                                                          March 31,
                                                  -------------------------
                                                      2014          2013
                                                  -----------   -----------
Revenues:
  Vessel revenue, net                                   2,010         5,645

Expenses:
  Direct voyage expenses                               (1,258)       (1,418)
  Vessel operating expenses                              (706)       (3,466)
  Management fees                                        (122)         (288)
  General and administrative expenses                    (664)       (1,336)
  Depreciation and amortization                             -          (581)
  Loss on sale of vessels and asset impairment
   charges                                                  -          (862)
  Gain on restructuring                                85,447             -
  Gain on disposal of subsidiaries                          -         5,538
                                                  -----------   -----------
Operating income                                       84,707         3,232
Other income (expense):
  Interest and finance costs                           (1,207)       (2,166)
  Loss from financial instruments                           -            (2)
  Other, net                                                5             1
                                                  -----------   -----------
Total other expenses, net:                             (1,202)       (2,167)
                                                  -----------   -----------
Net income                                             83,505         1,065
                                                  ===========   ===========

Net income per common share, basic and diluted           6.98          0.09
Weighted average number of common shares
 outstanding, basic                                11,959,161    11,958,063
Weighted average number of common shares
 outstanding, diluted                              11,959,271    11,959,282

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is a Marshall Islands corporation with its executive offices in Athens, Greece. The Company is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers.

Currently, the Company does not own any operating vessels. Upon completion of the vessels' contribution transaction previously announced, subject to certain closing conditions, the Company's fleet will consist of 4 Capesize dry bulk carriers with a combined cargo-carrying capacity of approximately 682,723 dwt and an average fleet age of 7.5 years.

The Company's common stock trades on the Nasdaq Capital Market under the symbol "SHIP".

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that such expectations will prove to have been correct, these statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the scope and timing of Securities and Exchange Commission ("SEC") and other regulatory agency review, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the SEC. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...