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Aries Maritime Transport Limited Announces Third Quarter 2008 Financial Results
- Press Release
- Source: Aries Maritime Transport Limited
- On Thursday November 20, 2008, 9:24 am EST
ATHENS, Greece, Nov. 20, 2008 (GLOBE NEWSWIRE) -- Aries Maritime Transport Limited (NasdaqGS:RAMS - News) today reported its financial results for the three and nine months ended September 30, 2008. The following financial review discusses the results for the three months ended September 30, 2008 compared with the results for the three months ended September 30, 2007 as well as results for the nine months ended September 30, 2008 compared with the results for the nine months ended September 30, 2007. In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius, which resulted in a book profit totaling $13.6 million during the second quarter of 2008. The results for these vessels are reported as discontinued operations.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| RAMS | 0.78 | -0.02 |
Third Quarter Results
Revenues of $22.9 million from continuing operations were recorded for the three months ended September 30, 2008, compared to revenues of $17.9 million recorded for the three months ended September 30, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $14.1 million and $15.7 million for the three month periods ended September 30, 2008 and September 30, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization during the three months ended September 30, 2008 compared to the three months ended September 30, 2007. Additionally, the Company employed three vessels in the spot market during the third quarter of 2008 compared to one vessel in the year-earlier period, which led to an increase in voyage expenses for the three month period ended September 30, 2008. Vessel operating days totalled 1,104 for both quarters. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Total actual revenue days for the three months ended September 30, 2008 were 984 and total actual revenue days for the three months ended September 30, 2007 were 1,008. The Company defines revenue days as the total days the vessels were not out of service.
Net loss from continuing operations was $4.7 million, or $0.17 basic and diluted loss per share, for the three months ended September 30, 2008, compared to a net loss of $5.1 million, or $0.18 basic and diluted loss per share, recorded for the three months ended September 30, 2007.
Results for the three month period ended September 30, 2008, included an unrealized loss of $0.8 million from the change in the fair value of derivatives. Results for the three month period ended September 30, 2007 include an unrealized loss of $3.3 million from the aforementioned derivatives.
Net loss from continuing and discontinued operations for the three months ended September 30, 2008 was $3.7 million, or $0.13 basic and diluted loss per share, compared to a net loss of $6.5 million, or $0.23 basic and diluted loss per share, recorded for the three months ended September 30, 2007.
Adjusted EBITDA for the three months ended September 30, 2008 was $2.1 million compared to $8.3 million for the three months ended September 30, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)
Jeff Parry, Chief Executive Officer, commented, ``During the third quarter, Aries continued to implement its period charter approach. Since the Company's new management team was appointed in July 2008, we have secured profitable period charters for five vessels, two of which have profit-sharing components. By strengthening our fixed revenue and cash flow streams during a challenging market environment, management remains committed to improving future performance and realizing the inherent value in the Company as we continue to execute our comprehensive turnaround plan.''
Nine-Month Results
Revenues of $62.2 million were recorded for the nine months ended September 30, 2008, compared to revenues of $61.3 million recorded for the nine months ended September 30, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $48.3 million and $52.6 million for the nine month periods ended September 30, 2008 and September 30, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization during the nine months ended September 30, 2008 compared to the nine months ended September 30, 2007. During the nine months ended September 30, 2008 total vessel operating days were 3,288 compared to total vessel operating days of 3,276 for the nine months ended September 30, 2007. Total actual revenue days for the nine months ended September 30, 2008 and September 30, 2007 were 3,082 and 3,152, respectively.
Net loss from continuing operations was $8.1 million, or $0.28 basic and diluted loss per share, for the nine months ended September 30, 2008, compared to net income of $4.0 million, or $0.14 basic and diluted earnings per share, recorded for the nine months ended September 30, 2007. Results for the nine month periods ended September 30, 2008 and September 30, 2007 included an unrealized loss of $0.8 million and $1.6 million, respectively, from the change in the fair value of derivatives.
Net income from continuing and discontinued operations for the nine months ended September 30, 2008 was $2.6 million, or $0.09 basic and diluted earnings per share, compared to a net loss of $1.7 million, or $0.06 basic and diluted loss per share, recorded for the nine months ended September 30, 2007.
Adjusted EBITDA for the nine months ended September 30, 2008 was $18.0 million compared to $33.6 million for the nine months ended September 30, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)
Fleet Report
Aries operates a fleet of nine double-hull products tankers and three container ships. Currently, 10 of the Company's 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 0.1 to 2.1 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
On October 2, 2008, Aries announced it secured a period charter for the High Land, a 1992-built products tanker, and the High Rider, a 1991-built products tanker, with IPG for 12 months at a net rate of $18,525 per day per vessel. The period charter for the High Land commenced on September 29, 2008 and the period charter for the High Rider commenced on October 7, 2008.
On September 15, 2008, Aries commenced a period charter with MSC, the second largest container shipping line in the world, for the CMA CGM Seine, a 1990-built container vessel now named the MSC Seine, following the completion of repairs. The period charter is for a period of 12 months at a net rate of $14,918.5 per day.
On July 18, 2008, Aries announced it renewed the bareboat charters for the Stena Compass, a 2006-built double-hull products tanker, and its sister ship, the Stena Compassion, with Stena Group. The charters will be for 23 to 25 months at a gross rate of $18,700 per day per vessel, less 2.5% in brokerage commissions. The charters also include a profit-sharing component for Aries equal to 30% of the actual time charter equivalent (TCE) rate achieved above $26,000 per day per vessel.
The following table details Aries' fleet deployment:
Year Charterer/ Expiration: Charterhire
---- ---------- ---------- -----------
Vessels Size Built Subcharterer of Charter (net per day)
------- ---- ----- ------------ ----------- -------------
Products
--------
Tankers
-------
Altius 73,400 dwt 2004 Deiulemar/ Through $14,860
Enel 6/09
Fortius 73,400 dwt 2004 Deiulemar/ Through $14,860
Enel 8/09
Nordanvind 38,701 dwt 2001 PDVSA Through $19,988
11/08
Ostria 38,701 dwt 2000 Spot market -- --
High Land 41,450 dwt 1992 IPG Through $18,525
9/09
High Rider 41,502 dwt 1991 IPG Through $18,525
10/09
Stena Compass 72,750 dwt 2006 Stena Group Through Bareboat
8/10 charter rate
of $18,232.50
+ 30% of
profits above
$26,000
Stena
Compassion 72,750 dwt 2006 Stena Group Through Bareboat
12/10 charter rate
of $18,232.50
+ 30% of
profits above
$26,000
Chinook 38,701 dwt 2001 Spot market -- --
Container
---------
Vessels
-------
Saronikos
Bridge 2,917 TEU 1990 CMA CGM Through $20,400
5/10
MSC Seine
(formerly
CMA CGM
Seine) 2,917 TEU 1990 MSC Through $14,918.50
9/09
Ocean Hope 1,799 TEU 1989 China Through $13,300
Shipping 6/09
Container
Lines
Summary of Selected Data
Three Months Ended Three Months Ended
September 30, 2008 September 30, 2007
ADJUSTED EBITDA
RECONCILIATION (From Continuing Operations) (1)
-------------------
(All amounts in US$000's
unless otherwise stated)
NET LOSS (4,736) (5,143)
PLUS : NET INTEREST EXPENSE 3,705 4,382
PLUS : DEPRECIATION AND
AMORTIZATION 1,949 5,106
PLUS: CHANGE IN FAIR VALUE
OF DERIVATIVES 793 3,336
PLUS: STOCK BASED
COMPENSATION 391 663
ADJUSTED EBITDA 2,102 8,344
FLEET DATA
NUMBER OF VESSELS 12 12
NUMBER OF VESSELS ON PERIOD
CHARTER 11 11
WEIGHTED AVERAGE AGE OF FLEET 10.6 9.6
OPERATING DAYS (2) 1,104 1,104
AVERAGE DAILY RESULTS
TIME CHARTER EQUIVALENT RATE
(3) 20,733 18,159
TOTAL VESSEL OPERATING
EXPENSES (4) 12,597 7,950
Nine Months Ended Nine Months Ended
September 30, 2008 September 30, 2007
ADJUSTED EBITDA
RECONCILIATION (From Continuing Operations) (1)
-------------------
(All amounts in US$000's
unless otherwise stated)
NET INCOME/ (LOSS) (8,125) 3,962
PLUS : NET INTEREST EXPENSE 11,257 13,201
PLUS : DEPRECIATION AND
AMORTIZATION 13,262 14,153
PLUS: CHANGE IN FAIR VALUE OF
DERIVATIVES 761 1,605
PLUS: STOCK BASED COMPENSATION 885 663
ADJUSTED EBITDA 18,040 33,584
FLEET DATA
NUMBER OF VESSELS 12 12
NUMBER OF VESSELS ON PERIOD
CHARTER 11 11
WEIGHTED AVERAGE AGE OF FLEET 10.6 9.6
OPERATING DAYS (2) 3,288 3,276
AVERAGE DAILY RESULTS
TIME CHARTER EQUIVALENT RATE (3) 19,146 19,481
TOTAL VESSEL OPERATING EXPENSES
(4) 10,259 6,743
(1) Aries considers Adjusted EBITDA to represent the aggregate of net
income / (loss), net interest expense, depreciation, amortization
(excluding the effect of the amortization of the deferred revenue due to
the assumption of charters associated with certain vessel acquisitions),
change in the fair value of derivatives and stock-based compensation
expense. The Company's management uses Adjusted EBITDA as a
performance measure. The Company believes that Adjusted EBITDA is
useful to investors, because the shipping industry is capital
intensive and may involve significant financing costs. Adjusted
EBITDA is not an item recognized by GAAP and should not be considered
as an alternative to net income, operating income or any other
indicator of a company's operating performance required by GAAP.
The Company's definition of Adjusted EBITDA may not be the same as
that used by other companies in the shipping or other industries.
(2) Operating days are defined as the total days the vessels were in
the Company's possession for the relevant period.
(3) Adjusted to reflect that the Stena Compass and the Stena
Compassion were each employed on a bareboat charter; an assumed TCE
of $24,500 per day, reflecting assumed operating costs of $5,800 per
day, has been included in respect of (a) the 91 operating days of the
vessels during the three month period ended March 31, 2008 and (b)
the 90 operating days of the vessels during the three month period
ended March 31, 2007
(4) Total vessel operating expenses are defined as the sum of the
vessel operating expenses, amortization of dry-docking and special
survey expense and management fees adjusted to exclude the following
operating days with respect to the Stena Compass and the Stena
Compassion, which were employed on bareboat charters:
(a) the 91 operating days of the vessels during the three month
period ended March 31, 2008, and (b) the 90 operating days of the
vessels during the three month period ended March 31, 2007.
Suspension of Quarterly Dividend
On September 12, 2008, Aries announced it suspended payment of its quarterly dividend, effective immediately. The decision follows the new management's strategic review of the Company's business and reflects the Company's focus on improving its long-term strength and operational results. Aries will evaluate the Company's dividend policy on an ongoing basis.
Conference Call Information
Aries will hold a conference call on Thursday, November 20, 2008, at 10:00 a.m. Eastern Time to discuss results for the third quarter of 2008. To access the conference call, dial (877) 879-6209 for domestic callers, or (719) 325-4805 for international callers, and use the reservation number 6939346. Following the teleconference, a replay of the call may be accessed by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and using the reservation number 6939346. The replay will be available through December 4, 2008. The conference call will also be webcast live on the Company's website, http://www.ariesmaritime.com. A replay of the audio webcast will be available following the call through December 4, 2008.
About Aries Maritime Transport Limited
Aries Maritime Transport Limited is an international shipping company that owns and operates products tankers and container vessels. The Company's products tanker fleet consists of five MR tankers and four Panamax tankers, all of which are double-hulled. The Company also owns a fleet of three container vessels that range in capacity from 1,799 to 2,917 TEU. Ten of the Company's 12 vessels are secured on period charters. Charters for two of the Company's products tanker vessels currently have profit-sharing components.
``Safe Harbor'' Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as ``forward-looking statements.'' We caution that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. All statements in this document that are not statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, such matters as future operating or financial results; statements about planned, pending or recent acquisitions, business strategy, future dividend payments and expected capital spending or operating expenses, including drydocking and insurance costs; statements about trends in the container vessel and products tanker shipping markets, including charter rates and factors affecting supply and demand; our ability to obtain additional financing; expectations regarding the availability of vessel acquisitions; and anticipated developments with respect to pending litigation. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Aries Maritime Transport Limited believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Aries Maritime Transport Limited cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements contained in this press release. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for oil and oil products, the effect of changes in OPEC's petroleum production levels, worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in Aries Maritime Transport Limited's voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists and other factors discussed in Aries Maritime Transport Limited's filings with the U.S. Securities and Exchange Commission from time to time. When used in this document, the words ``anticipate,'' ``estimate,'' ``project,'' ``forecast,'' ``plan,'' ``potential,'' ``may,'' ``should,'' and ``expect'' reflect forward-looking statements.
ARIES MARITIME TRANSPORT LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2008 AND SEPTEMBER 30,
2007
(All amounts expressed in thousands of U.S. Dollars, except share
and per share amounts)
---------------------------------------------------------------------
(Unaudited) (Unaudited)
Three month Three month
period ended period ended
September September
30, 2008 30, 2007
----------- -----------
REVENUES:
Revenue from voyages 22,902 17,947
EXPENSES:
Commissions (414) (222)
Voyage expenses (3,154) (487)
Vessel operating expenses (9,981) (6,294)
General and administrative expenses (2,003) (1,382)
Depreciation (6,011) (5,977)
Amortization of dry-docking and special
survey expense (1,124) (620)
Management fees (484) (400)
----------- -----------
(23,171) (15,382)
----------- -----------
Net operating income (269) 2,565
OTHER INCOME (EXPENSES):
Interest expense (3,755) (4,577)
Interest received 50 195
Other expenses, net 31 10
Change in fair value of derivatives (793) (3,336)
----------- -----------
Total other (expenses), net (4,467) (7,708)
----------- -----------
----------- -----------
Net (Loss) / Income from continuing
operations (4,736) (5,143)
----------- -----------
Net Income / (Loss) from discontinued
operations
(includes $13,569 gain on sale of vessels) 1,036 (1,318)
----------- -----------
NET INCOME/ (LOSS) (3,700) (6,461)
=========== ===========
Loss per share:
Basic and diluted (Net Loss from
Continuing Operations) (0.17) (0.18)
=========== ===========
Basic and diluted (Net Income / (Loss)
from Discontinued Operations 0.04 (0.05)
=========== ===========
Basic and diluted (Net Loss) (0.13) (0.23)
=========== ===========
Weighted average number of shares:
Basic 28,605,563 28,441,492
=========== ===========
Diluted 28,611,728 28,441,492
=========== ===========
Other Financial Data
(All amounts in thousands of U.S. dollars) Three month Three month
period ended period ended
September September
30, 2008 30, 2007
----------- -----------
Net cash provided by operating activities 2,171 4,121
Net cash provided by / (used in) investing
activities 8,093 (346)
Net cash (used in) financing activities (549) (5,353)
ARIES MARITIME TRANSPORT LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2008 AND SEPTEMBER 30, 2007
(All amounts expressed in thousands of U.S. Dollars, except share and
per share amounts)
---------------------------------------------------------------------
(Unaudited) (Unaudited)
Nine month Nine month
period ended period ended
September 30, 2008 September 30, 2007
------------------ ------------------
REVENUES:
Revenue from voyages 62,174 61,319
EXPENSES:
Commissions (912) (830)
Voyage expenses (5,431) (2,251)
Vessel operating expenses (23,719) (15,330)
General and administrative
expenses (5,893) (3,016)
Depreciation (17,901) (17,895)
Amortization of dry-docking
and special
survey expense (2,907) (1,882)
Management fees (1,483) (1,198)
------------------ ------------------
(58,246) (42,402)
------------------ ------------------
Net operating income 3,928 18,917
OTHER INCOME (EXPENSES):
Interest expense (11,488) (13,730)
Interest received 231 529
Other expenses, net (35) (149)
Change in fair value of
derivatives (761) (1,605)
------------------ ------------------
Total other expenses, net (12,053) (14,955)
------------------ ------------------
------------------ ------------------
Net (Loss) / Income from
continuing operations (8,125) 3,962
------------------ ------------------
Net Income / (Loss) from
discontinued operations
(includes $13,569 gain on
sale of vessels) 10,714 (5,649)
------------------ ------------------
NET INCOME/ (LOSS) 2,589 (1,687)
================== ==================
Earnings / (Loss) per share:
Basic and diluted (Net
Income / (Loss) from
Continuing Operations) (0.28) 0.14
================== ==================
Basic and diluted (Net
Income / (Loss) from
Discontinued Operations 0.37 (0.20)
================== ==================
Basic and diluted (Net
Income / (Loss)) 0.09 (0.06)
================== ==================
Weighted average number of
shares:
Basic 28,605,563 28,441,492
================== ==================
Diluted 28,611,728 28,441,492
================== ==================
Other Financial Data
(All amounts in thousands of
U.S. dollars) Nine month Nine month
period ended period ended
September 30, 2008 September 30, 2007
Net cash provided by operating
activities 3,215 14,693
Net cash provided by / (used in)
investing activities 59,051 (1,918)
Net cash (used in) financing
activities (65,734) (11,535)
ARIES MARITIME TRANSPORT LIMITED
CONSOLIDATED BALANCE SHEETS
(All amounts expressed in thousands of U.S. Dollars)
---------------------------------------------------------------------
(Unaudited)
September 30, December 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents 3,581 12,444
Restricted cash 7,568 39
Trade receivables, net 2,618 2,219
Other receivables 2,212 1,033
Inventories 1,513 1,969
Prepaid expenses 1,477 1,681
Due from managing agent 2,713 814
Due from related parties 648 --
------------------------------------
Total current assets 22,330 20,199
------------------------------------
Vessels and other fixed assets, net 333,512 400,838
Deferred charges, net 2,210 2,906
Restricted cash -- 1,548
------------------------------------
Total non-current assets 335,722 405,292
------------------------------------
Total assets 358,052 425,491
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt 223,710 284,800
Accounts payable, trade 6,419 8,423
Accrued liabilities 9,220 5,297
Deferred income 787 2,291
Derivative financial instruments 6,697 5,936
Deferred revenue 2,188 4,656
Due to related parties -- 594
------------------------------------
Total current liabilities 249,021 311,997
------------------------------------
Deferred revenue 1,296 6,375
------------------------------------
Total liabilities 250,317 318,372
------------------------------------
Stockholders' equity
Preferred Stock, $0.01 par value,
30 million shares authorized,
none issued. -- --
Common Stock, $0.01 par value,
100 million shares
authorized, 28.6 million shares
issued and outstanding at
September 30, 2008 (December 31,
2007: 28.5 million) 289 286
Additional paid-in capital 113,590 115,566
Accumulated Deficit (6,144) (8,733)
------------------------------------
Total stockholders' equity 107,735 107,119
------------------------------------
Total liabilities and
stockholders' equity 358,052 425,491
====================================
Contact:
Aries Maritime Transport Limited
Ioannis Makris, Chief Financial Officer
(011) 30 210 8983787
The IGB Group
Investor and Media Contact:
Michael Cimini
212-477-8261
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