ATHENS, Greece, June 2, 2009 (GLOBE NEWSWIRE) -- Aries Maritime Transport Limited (Nasdaq:RAMS) today reported its unaudited financial results for the three months ended March 31, 2009. The following financial review discusses the results for the three months ended March 31, 2009, compared with the results for the three months ended March 31, 2008.(1)
First Quarter Results
Total revenues from continuing operations of $16.8 million were recorded for the three months ended March 31, 2009, compared to total revenues of $20 million recorded for the three months ended March 31, 2008. For the three month periods ended March 31, 2009 and March 31, 2008, the Company reported revenues of $13.9 million and $17.5 million, respectively, excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as direct expenses including commissions and voyage expenses. The decrease in revenues is primarily attributable to 90 out-of-service days related to the Nordanvind as well as lower charter rates achieved for the MSC Seine and the Chinook during the three months ended March 31, 2009, compared to the three months ended March 31, 2008. Vessel operating days for the three months ended March 31, 2009 were 1,080, compared to operating days of 1,092 for the three months ended March 31, 2008. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Total revenue days for the three months ended March 31, 2009, were 976 and total revenue days for the three months ended March 31, 2008, were 1,060. The Company defines revenue days as the total days the vessels were not off hire or out of service.
Net loss from continuing operations was $4.2 million or $0.15 basic and diluted loss per share, for the three months ended March 31, 2009, compared to a net loss of $5.1 million, or $0.18 basic and diluted loss per share, recorded for the three months ended March 31, 2008. The results for the first quarter of 2009 include a $0.1 million non-cash loss from the change in the fair value of derivatives. The results for the same period of 2008 include a $3.6 million non-cash loss from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the three months ended March 31, 2009, was $4.2 million, or $0.15 basic and diluted loss per share, compared to a net loss of $6.9 million, or $0.24 basic and diluted loss per share, recorded for the three months ended March 31, 2008.
Adjusted EBITDA for the three months ended March 31, 2009, was $4.8 million compared to $8.1 million for the three months ended March 31, 2008. (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, "Our results for the first quarter reflect previously announced out-of-service time for the Nordanvind and reduced charter rates as anticipated for certain vessels, partially offset by lower general and administrative expenses. During this challenging global economic environment, management remains committed to strengthening the Company's ship operations as we continue to implement our turnaround plan. By taking proactive measures aimed at reducing costs and increasing the utilization of our fleet, while exploring strategic growth opportunities, we intend to enhance our future performance and drive shareholder value over the long term."
Fleet Report
Aries operates a fleet of nine double-hull products tankers and three container ships. Currently, eight of the Company's 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 1 month to 1.6 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
On April 14, 2009, the Ocean Hope was redelivered to the Company following the completion of the vessel's scheduled period charter. The Ocean Hope was subsequently laid up with reduced crew at substantially reduced operating expenses as management continues to evaluate options related to the 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 2004 Deiulemar/ Through $14,860 dwt Enel 6/09 Fortius 73,400 2004 Deiulemar/ Through $14,860 dwt Enel 8/09 Nordanvind 38,701 2001 Spot -- -- dwt market Ostria 38,701 2000 Spot -- -- dwt market High Land 41,450 1992 IPG Through $14,822.50 dwt 9/09 High Rider 41,502 1991 IPG Through $15,015 dwt 10/09 Stena Compass 72,750 2006 Stena Through Bareboat dwt Group 8/10 charter rate of $18,232.50 + 30% of profits above $26,000 Stena 72,750 2006 Stena Through Bareboat Compassion dwt Group 12/10 charter rate of $18,232.50 + 30% of profits above $26,000 Chinook 38,701 2001 Spot -- -- dwt market Container --------- Vessels ------- Saronikos 2,917 1990 CMA CGM Through $20,400 Bridge TEU 5/10 MSC Seine 2,917 1990 MSC Through $14,725 TEU 9/09 Ocean Hope 1,799 1989 -- -- -- TEU Summary of Selected Data Three Months Ended Three Months Ended March 31, 2009 March 31, 2008 ADJUSTED EBITDA RECONCILIATION (1) ------------------- (All amounts in US$000's unless otherwise stated) NET LOSS (4,213) (5,093) PLUS : NET INTEREST EXPENSE 3,523 3,599 PLUS : DEPRECIATION AND AMORTIZATION 5,192 5,506 PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES 106 3,607 PLUS: STOCK BASED COMPENSATION 146 466 ADJUSTED EBITDA 4,754 8,085 FLEET DATA NUMBER OF VESSELS 12 12 AVERAGE NUMBER OF VESSELS ON PERIOD CHARTER 9 11 WEIGHTED AVERAGE AGE OF FLEET 11 10 OPERATING DAYS (2) 1,080 1,092 REVENUE DAYS (3) 976 1,060 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (4) 15,829 18,637 TOTAL VESSEL OPERATING EXPENSES (5) 9,907 9,438 (1) Aries considers Adjusted EBITDA to represent the aggregate of net income/(loss) from continuing operations, net interest expense, depreciation, amortization (excluding the effect of the amortization of the deferred revenue due to the assumption of charters associated with certain vessels acquisitions), change in the fair value of derivatives, stock-based compensation expense and impairment loss. 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/loss, operating income/loss 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) Revenue days are defined as the total days the vessels were not off hire or out of service. (4) Adjusted to reflect that the Stena Compass and the Stena Compassion were each employed on a bareboat charter as follows: 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 90 operating days of the vessels during the three month period ended March 31, 2009, and (b) the 91 operating days of the vessels during the three month period ended March 31, 2008. (5) Total vessel operating expenses are defined as the sum of the vessel operating expenses, amortization of drydocking 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) 90 operating days of the vessels during the three month period ended March 31, 2009, and (b) 91 operating days of the vessels during the three month period ended March 31, 2008.
Conference Call Information
Aries will hold a conference call on Tuesday, June 2, 2009, at 10:00 a.m. Eastern Time to discuss results for the first quarter of 2009. To access the conference call, dial (888) 935-4577 for domestic callers, or (212) 444-0413 for international callers, and use the reservation number 1914867. Following the teleconference, a replay of the call may be accessed by dialing (866) 883-4489 for domestic callers, or (718) 354-1112 for international callers, and using the reservation number 1914867. The replay will be available through June 16, 2009. 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 June 16, 2009.
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. Eight 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 MARCH 31, 2009 AND MARCH 31, 2008 (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 March 31, 2009 March 31, 2008 ----------------------------------- OPERATING REVENUES 16,751 19,972 EXPENSES: Commissions (463) (268) Voyage expenses (1,883) (1,004) Vessel operating expenses (7,462) (7,300) General & administrative expenses (1,368) (2,044) Depreciation (4,687) (5,945) Amortization of dry-docking and special survey expense (1,050) (753) Management fees (404) (536) ----------------------------------- (17,317) (17,850) ----------------------------------- Net operating (loss)/income (566) 2,122 OTHER INCOME/(EXPENSES), NET: Interest & finance expense, net (3,526) (3,705) Interest income 3 106 Other expenses, net (18) (9) Change in fair value of derivatives (106) (3,607) ----------------------------------- Total other expenses, net (3,647) (7,215) ----------------------------------- Net loss from continuing operations (4,213) (5,093) ----------------------------------- Net loss from discontinued operations (33) (1,770) ----------------------------------- Net loss (4,246) (6,863) ----------------------------------- Loss per share: Basic and diluted Continuing operations ($0.15) ($0.18) ----------------------------------- Discontinued operations -- ($0.06) ----------------------------------- Total ($0.15) ($0.24) ----------------------------------- Weighted average number of shares: Basic and diluted 28,721,877 28,616,877 ----------------------------------- Three month Three month (All amounts in thousands period ended period ended of U.S. dollars) March 31, 2009 March 31, 2008 Net cash (used in)/provided by operating activities (1,505) 877 Net cash used in investing activities (42) -- Net cash (used in)/provided by financing activities 820 (7) ARIES MARITIME TRANSPORT LIMITED CONSOLIDATED BALANCE SHEETS (All amounts expressed in thousands of U.S. Dollars except share amounts) --------------------------------------------------------------------- (Unaudited) (Audited) March 31, December 31, ----------------------------- 2009 2008 ----------------------------- ASSETS Current assets Cash and cash equivalents 3,282 4,009 Restricted cash 7,690 8,510 Trade receivables, net 2,084 2,533 Other receivables 1,701 2,289 Inventories 1,394 1,224 Prepaid expenses 685 967 Due from managing agent 399 160 Due from related parties 37 49 ----------------------------- Total current assets 17,272 19,741 ----------------------------- Vessels and other fixed assets, net 290,768 296,463 Deferred charges, net 1,386 1,573 ----------------------------- Total non-current assets 292,154 298,036 ----------------------------- Total assets 309,426 317,777 ============================= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 223,710 223,710 Accounts payable, trade 3,706 3,601 Accrued liabilities 5,116 7,776 Deferred income 537 1,807 Derivative financial instruments 12,557 12,451 Deferred charter revenue 2,102 2,144 Due to related parties 13 -- ----------------------------- Total current liabilities 247,741 251,489 ----------------------------- Deferred charter revenue 269 772 ----------------------------- Total liabilities 248,010 252,261 ----------------------------- Stockholders' equity Preferred Stock, $0.01 par value, 30 million shares authorized, none issued. Common Stock, $0.01 par value, 100 million shares authorized, 29 million shares issued and outstanding at March 31, 2009 (2008: 29 million shares) 290 290 Additional paid-in capital 113,933 113,787 Deficit (52,807) (48,561) ----------------------------- Total stockholders' equity 61,416 65,516 ----------------------------- Total liabilities and stockholders' equity 309,426 317,777 ============================= (1) In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius, which resulted in a gain on sale of $13.6 million during the second quarter of 2008. The results for these vessels and related gain on disposal are reported as discontinued operations.