OceanFreight Inc.’s Summary Financial Results and Key Indicators
Three months
INCOME STATEMENT DATA ended
(dollars in thousands, except earnings per share data) September 30,
2007
===============
Voyage revenue 13,742
Imputed deferred revenue (1) 2,088
---------------
Total revenue 15,830
Voyage expenses (763)
Direct vessel operating expenses * (4,302)
Total general and administrative expenses (cash and
non-cash) ** (1,125)
Survey and drydocking costs (1,685)
Depreciation (5,647)
---------------
Operating Income 2,308
Interest income 573
Interest expense and finance costs (1,894)
Other income, net (13)
---------------
Net Income 974
===============
Common earnings per share $ 0.14
Common ad Subordinated earnings per share $ 0.11
Weighted average Common shares outstanding
(thousands) (2) 6,992
Weighted average Common and Subordinated shares
outstanding (thousands) (2) 9,028
* Includes costs incurred in connection with
drydocking which for accounting purposes
are classified as vessel operating expenses 995
** Includes non-cash amortization of compensation
related to restricted management stock 177
===============
(1) Imputed deferred revenue (IDR) - arises from the difference between
the net present value of the time charter which is incorporated in
the purchase contract of a vessel and the net present value of a
market rate charter for the same vessel and same charter period
determined at the date of delivery. We amortize this difference to
revenue on a straight line basis during the remaining life of the
charter. The table below shows the vessel, charter dates and
duration, total IDR and daily depreciation of IDR for the relevant
vessels.
Total
First Full Day Last Full Day of Charter
Vessel of Charter Charter Days
============== ================== =======
Austin June 7, 2007 April 4, 2010 1,034
-------------- ------------------ -------
Pierre June 7, 2007 June 3, 2010 1,094
-------------- ------------------ -------
Topeka August 3, 2007 September 29, 2010 1,155
-------------- ------------------ -------
Trenton June 5, 2007 April 2, 2010 1,034
============== ================== =======
Total
Imputed Daily Amortization
Deferred Amortization of Cumulative Unamortized
Vessel Revenue IDR of IDR for Quarter Amortization Balance
============ ============ ============ ============ ===========
Austin $ 3,700,000 $ 3,578 $ 329,207 $ 415,087 $ 3,284,913
------------ ------------ ------------ ------------ -----------
Pierre $ 6,250,000 $ 5,713 $ 525,594 $ 662,706 $ 5,587,294
------------ ------------ ------------ ------------ -----------
Topeka $ 17,696,087 $ 15,321 $ 903,956 $ 903,956 $16,792,131
------------ ------------ ------------ ------------ -----------
Trenton $ 3,700,000 $ 3,578 $ 329,207 $ 422,244 $ 3,277,756
============ ============ ============ ============ ===========
============ ============ ============ ============ ===========
TOTAL $ 31,346,087 $ 28,191 $ 2,087,964 $ 2,403,992 $28,942,095
============ ============ ============ ============ ===========
(2) Weighted average shares - for nine month period calculated from
beginning of the year assuming issuance of Common stock, including
restricted stock, on April 30, 2007.
BALANCE SHEET DATA, at end of period As of
(dollars in thousands) September 30, 2007
==================
Cash 17,668
Current assets including cash 19,245
Total Assets 367,183
Current portion of imputed deferred revenue 10,318
Current portion of long-term debt -
Total current liabilities 16,014
Total long term imputed deferred revenue, including
current portion 28,942
Total long-term debt, including current option 118,000
Stockholders' equity 214,545
Common shares outstanding at end of period 12,394
Common and Subordinated shares outstanding at
end of period 14,457
==================
==================
STATEMENT OF CASH FLOWS DATA Three months ended
(dollars in thousands) September 30, 2007
==================
Net cash provided by operating activities 8,296
Net cash used in investing activities (91,716)
Net cash provided by financing activities 30,890
==================
Cash Flow (52,530)
==================
==================
OTHER FINANCIAL DATA Three months ended
(dollars in thousands) September 30, 2007
==================
EBITDA (1) 6,044
Weighted average long-term debt (2) 106
FLEET DATA
Total number of vessels at end of period 7
Average number of vessels for period (3) 6.3
Total ownership days for fleet (4) 578
Total voyage days for fleet (5) 511
Fleet utilization (6) 88.4%
AVERAGE DAILY RESULTS
(NOT in thousands)
Time Charter equivalent, TCE (7) 25,399
Direct vessel operating expenses per vessel (8) 5,721
General and administrative, cash cost (9) 1,640
Total vessel operating expenses (10) 7,362
EBITDA (11) 10,457
==================
Net voyage revenue reconciliation
Total revenue 15,830
- Imputed deferred revenue (2,088)
- Voyage Expenses (763)
==================
Net voyage revenue 12,979
EBITDA reconciliation
Net Income 974
+ Net interest expense and other income 1,334
+ Depreciation and amortization, includes
amortization of compensation of restricted
management stock 5,824
- Imputed deferred revenue (2,088)
==================
EBITDA 6,044
(1) EBITDA - represents net income plus net interest expense and other
income, plus depreciation and amortization minus imputed deferred
revenue. EBITDA is used by analysts in the shipping industry as a
common performance measure to compare results across peers. Management
of the Company uses EBITDA as a performance measure in its internal
financial statements and it is presented for review at our board
meetings. EBITDA is not an item recognized by GAAP. The definition
of EBITDA used here may not be comparable to that used by other
companies.
(2) Weighted average long term debt - is the measurement of debt as of the
close of each business day for the period divided by the number of
calendar days in that period.
(3) Average number of vessels - is the number of vessels that constituted
our fleet for the relevant period as measured by the sum of the number
of whole days each vessel was a part of our fleet during the period
divided by the number of calendar days in that period.
(4) Ownership days - are the total whole calendar days that a vessel
was in our possession for the relevant period including off hire days.
(5) Voyage days - are the total whole days a vessel was in our possession
for the relevant period net of off hire days.
(6) Fleet utilization - is the percentage of time that our vessels were
available for revenue generating operations and is determined by
dividing voyage days by ownership days for the relevant period.
(7) Time charter equivalent, or TCE - is a measure of the average daily
revenue performance of a vessel on a per voyage basis. We believe
that our method of calculating TCE is consistent with industry
standards and is determined by dividing net voyage revenue
(see reconciliation of net voyage revenue above) by voyage days
(8) Direct vessel operating expenses - is calculated by dividing vessel
operating expenses which includes crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance and repairs
and technical manager administrative costs by calendar days for the
relevant period. For this purpose we have excluded expenses incurred
during the course of a drydocking which for accounting purposes are
not classified as survey costs.
(9) General and administrative costs - is calculated by dividing general
and administrative costs net of compensation of non-cash amortization
of restricted management stock by the calendar days for the relevant
period.
(10)Total vessel operating expenses - is the sum of direct vessel
operating expenses and general and administrative costs described
above in notes 8 and 9.
Fleet Profile and Employment
As of September 30, 2007, OceanFreight's fleet consisted of 7 vessels: 6
Panamax and 1 Capesize bulker. The Company has also entered into MOAs to
acquire two additional Panamax dry bulk vessels: the Richmond and the
Augusta with delivery expected in November 2007 and January 2008,
respectively. The Company's full fleet of nine vessels will have an
average age of 11.7 years as of September 30, 2007 calculated on a dwt
weighted average and a total carrying capacity of approximately 736,000
dwt.
Vessel Year
Vessel Type Acquired(1) Built DWT LWT
======== =========== ====== ======= ======
January 1,
Augusta Panamax 2008 (2) 1996 69,053 9,808
-------- ----------- ------ ------- ------
June 7,
Austin Panamax 2007 1995 75,229 11,620
-------- ----------- ------ ------- ------
July 30,
Helena Panamax 2007 1999 73,744 9,502
-------- ----------- ------ ------- ------
July 5,
Lansing Panamax 2007 1996 73,040 10,788
-------- ----------- ------ ------- ------
June 7,
Pierre Panamax 2007 1996 70,316 9,106
-------- ----------- ------ ------- ------
December 1,
Richmond Panamax 2007 (2) 1995 75,265 11,585
-------- ----------- ------ ------- ------
August 3,
Topeka Panamax 2007 2000 74,710 12,627
-------- ----------- ------ ------- ------
June 5,
Trenton Panamax 2007 1995 75,229 11,620
-------- ----------- ------ ------- ------
June 30,
Juneau Capesize 2007 1990 149,495 18,468
======== =========== ====== ======= ======
(1) First whole day of ownership
(2) Projected
All of the Company's vessels are currently operating or have been
contracted to operate upon delivery under long term period charters with
established charterers.
For the remainder of 2007, 100% of the Company's net ownership days are
covered by time charters, with approximately 95% for 2008 and 68% for 2009.
Vessel Time Charter
Vessel Type Begin Charter (1) Expiration Date (2) Rate (3)
======== =================== =================== =============
Augusta(4) Panamax January 1, 2008 (5) December 31, 2008 57,500
Austin Panamax June 7, 2007 (6) April 4, 2010 (6) 24,700
Helena Panamax July 30, 2007 August 31, 2008 28,125
Lansing Panamax July 5, 2007 May 30, 2009 23,100
Pierre Panamax June 7, 2007 (6) June 3, 2010 (6) 22,425
Richmond(4) Panamax December 1, 2007 (5) November 30, 2009 28,000
Topeka Panamax August 3, 2007 (6) September 29, 2010 (6) 21,656
Trenton Panamax June 5, 2007 (6) April 2, 2010 (6) 24,700
Juneau Capesize September 5, 2007 October 4, 2009 46,800
======== =================== =================== =============
(1) First whole day of charter
(2) Approximate expiration of charter
(3) Net of commissions and imputed deferred revenue
(4) Not yet acquired
(5) Projected
(6) Date used for calculation of imputed deferred revenue
Dividend
The Company's policy is to pay a quarterly dividend of 51 1/4 cents per
share to holders of its common shares subject to declaration at the
discretion of the Board of Directors.
The Board of Directors of OceanFreight, has declared a dividend of 51 1/4
cents per share, payable on or about November 15, 2007, to all shareholders
of record as of November 5, 2007.
Conference Call details:
A conference call has been scheduled with management for 8 am New York time
on October 25, 2007, to discuss the Company's results for the third
quarter. Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 866 819 7111 (US Toll Free
Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301
(Standard International Dial In). Please quote "OceanFreight."
In case of any problems with the above numbers, please dial 1 866 223 0615
(US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452
586 513 (Standard International Dial In). Quote "OceanFreight."
A telephonic replay of the conference call will be available until November
1, 2007 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK
Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In).
Access Code: 7445162#
Slides and Audio webcast:
There will also be a live, and then archived, webcast of the conference
call, available through OceanFreight's website (www.oceanfreightinc.com).
Participants for the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About OceanFreight Inc.
OceanFreight Inc. was incorporated in 2006 to acquire high quality
second-hand tonnage and deploy them on medium to long term charters. The
Company began operations with the delivery of its first vessel in June 2007
and currently owns and operates a fleet of 7 vessels, consisting of 1
Capesize and 6 Panamax bulk carriers with a total carrying capacity of
approximately 592,000 dwt. The Company has also entered into agreements to
acquire 2 additional Panamax bulk carriers with delivery expected in
November 2007 and January 2008. Once these acquisitions are completed,
OceanFreight's fleet of 9 vessels will have a dwt weighted average age of
approximately 11.7 years as measured on September 30, 2007, and a total
carrying capacity of approximately 736,000 dwt.
The Company's shares are listed on the NASDAQ Global Select Market and
trades under the symbol "OCNF."
Visit our website at www.oceanfreightinc.com
OceanFreight Inc.
Consolidated Unaudited Statement of Income
For the three-month period ended September 30, 2007
(Expressed in thousands of U.S. Dollars - except for share and per share
data)
REVENUES:
Voyage revenue 13,742
Imputed deferred revenue 2,088
EXPENSES:
Voyage expenses 763
Vessels' operating expenses 4,302
General and administrative expenses 1,125
Survey and dry-docking costs 1,685
Depreciation 5,647
=========
Operating income 2,308
OTHER INCOME (EXPENSES):
Interest income 573
Interest and finance costs (1,894)
Other, net (13)
---------
Total other income (expenses), net (1,334)
=========
=========
NET INCOME 974
=========
Earnings per common share, basic 0.14
Earnings per common share, diluted 0.14
Earnings per subordinated share, basic -
Earnings per subordinated share, diluted -
Weighted number of common shares, basic 6,991,532
Weighted average number of common shares, diluted 6,991,532
Weighted average number of subordinated shares, basic 2,035,628
Weighted average number of subordinated shares, diluted 2,035,628
OceanFreight Inc.
Consolidated Balance Sheets
September 30, 2007 (Unaudited)
(Expressed in thousands of U.S. Dollars)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 17,668
Receivables 30
Inventories 522
Prepayments and other 1,025
=========
Total current assets 19,245
FIXED ASSETS, NET:
Advances for vessels acquisitions 10,860
Vessels, net 335,887
Other, net 11
=========
Total fixed assets, net 346,758
OTHER NON CURRENT ASSETS:
Deferred financing fees, net 1,156
Other 24
---------
TOTAL ASSETS 367,183
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 2,777
Due to related parties 32
Accrued liabilities 1,990
Unearned revenue 897
Current portion of imputed deferred revenue 10,318
Current portion of long-term debt -
=========
Total current liabilities 16,014
Long term imputed deferred revenue, net of current portion 18,624
Long term debt, net of current portion 118,000
---------
TOTAL LIABILITIES 152,638
=========
STOCKHOLDERS' EQUITY:
Preferred shares, par value $0.01; 5,000,000 shares
authorized, none issued -
Common Shares, par value $0.01; 95,000,000 shares authorized,
nil and 12,394,079 shares issued and outstanding at
December 31, 2006 and September 30, 2007 respectively 124
Subordinated Shares, par value $0.01; 10,000,000 shares
authorized, 2,000,000 and 2,063,158 shares issued and
outstanding at December 31, 2006 and September 30, 2007,
respectively 21
Additional paid-in capital 218,036
Accumulated deficit (3,636)
=========
TOTAL STOCKHOLDERS' EQUITY 214,545
=========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 367,183
=========
OceanFreight Inc.
Consolidated Statements of Cash Flows (unaudited)
For the three month period ended September 30, 2007
(Expressed in thousands of U.S. Dollars)
Cash Flows from Operating Activities:
Net income/ (loss) 974
Adjustments to reconcile Net Income to net cash provided
Operating Activities
Depreciation 5,647
Amortization of financing costs 47
Amortization of imputed deferred revenue (2,088)
Amortization of stock based compensation 177
Changes in operating assets and liabilities:
Receivables 323
Inventories 296
Prepayments and other (674)
Accounts payable 1,590
Due to related parties (31)
Accrued liabilities 1,562
Unearned revenue 473
=========
Net Cash provided by Operating Activities 8,296
Cash Flows from Investing Activities:
Additions to vessel cost (91,716)
=========
Net cash used in Investing Activities (91,716)
Cash Flows from Financing Activities:
Proceeds from long term debt 36,725
Cash dividends (5,638)
Payments of financing costs (197)
=========
Net cash provided by Financing Activities 30,890
Net increase in cash and cash equivalents (52,530)
Cash and cash equivalents at beginning of period 70,198
=========
Cash and cash equivalents at end of period 17,668
=========
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future events
or performance, and underlying assumptions and other statements, which are
other than statements of historical facts.
The forward-looking statements in this 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 OceanFreight Inc. 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, OceanFreight
Inc. cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections.
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 to us or delay in taking delivery of one or
more vessels, default by one or more charterers of our vessels, changes in
demand that may affect attitudes of time charterers, scheduled and
unscheduled drydocking, changes in OceanFreight Inc.'s operating expenses,
length and number of off-hire periods and dependence on third-party
managers, 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.
Risks and uncertainties are further discussed in documents filed by
OceanFreight Inc. with the U.S. Securities and Exchange Commission.
Contact Information: Company Contact: James Christodoulou Chief Financial Officer Tel. (212) 488-5052 E-mail: James@OceanFreightInc.com Financial Media: Capital Link - New York