SOURCE: Seanergy Maritime Holdings Corp.

SEANERGY MARITIME HOLDINGS CORP.

February 17, 2011 08:05 ET

Seanergy Maritime Holdings Corp. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2010

ATHENS, GREECE--(Marketwire - February 17, 2011) - Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) (NASDAQ: SHIPW) announced today its operating results for the fourth quarter and year ended December 31, 2010.

Financial Highlights:

Fourth Quarter 2010

--  Net Revenues of $25.9 million

--  EBITDA of $10.7 million

--  Net Loss of $2.6 million

Year Ended 2010

--  Net Revenues of $95.9 million

--  EBITDA of $47.3 million

--  Net Income of $1.6 million (before noncontrolling interest)

Management Discussion:

Dale Ploughman, the Company's Chairman and Chief Executive Officer, stated: "We are pleased with the annual and quarterly results that we are reporting. The fourth quarter of 2010 saw the successful implementation of our plan to grow Seanergy's fleet as we completed the acquisition of the remaining 50% ownership interest in Bulk Energy Transport (Holdings) Limited ("BET") in October 2010. This year therefore set an important milestone for our company, as the consolidation of our ownership interests in BET and Maritime Capital Shipping Limited ("MCS") more than tripled our wholly owned fleet from an initial base of six vessels with a carrying capacity of 316,676 deadweight tons to a total of 20 vessels with a carrying capacity of 1,293,105 deadweight tons.

It is of particular importance that we have achieved the above by acquiring assets at favorable prices, as we paid approximately $95 million in 2010, of which only $43 million was in the form of cash and the remainder was in the form of shares. This way, we believe that we managed to increase our earnings potential while maintaining a strong balance sheet and we therefore believe we remain well positioned to invest in further opportunities to acquire vessels that we believe will be accretive to our earnings. Furthermore, gaining exposure to all segments of the dry bulk industry has, in our view, enhanced the operational flexibility of our fleet.

We have significant time charter coverage with reputable charterers, which we believe provides cash flow stability and a degree of protection against the volatile freight rate environment, coupled with upside potential, as five of our vessels in total operate under profit sharing arrangements that allow us to participate in market upswings.

The fourth quarter of 2010 was characterized by freight market deterioration that continued into the new year, as the extended flooding in Australia led to disruption in coal trade that we previously viewed as providing support to freight rates up until that time, especially for larger vessel segments. As the situation unfolds in Australia, we believe it is possible that short term disruptions will subside and that freight rates may revert to normality.

We believe that long term dry bulk fundamentals remain solid as world industrial production is poised to continue growing due to growth witnessed in emerging markets. According to the International Monetary Fund, growth in emerging markets is expected to continue at the same pace and estimates for US GDP growth were revised upwards on the back of improved consumer demand.

The major downside risk for dry bulk shipping remains the issue of vessel oversupply. Vessels scheduled for 2011 delivery represent about 25% of the current dry bulk fleet, yet much of that comes from 2010 deliveries that were pushed back due to lack of sufficient funding available to ship owners. In 2010 slippage amounted to about 40% of the orderbook and we believe that the trend is poised to continue as financing for new vessels is increasingly hard to attain for all but the most solid companies in the sector. Furthermore, the vast majority of the order book represents orders contracted before 2009, at prices considerably higher than current market levels therefore making them poor investments considering current conditions. In addition, scrapping activity in the first month of 2011 has been much higher than the comparable period in 2010, according to industry sources. High prices paid for scrap sales (around $500 / LDT in 2011) combined with the recent fall in freight rates have contributed to this trend and are expected to further increase demolitions, especially as Bangladeshi yards start coming online later in the year."

Christina Anagnostara, the Company's Chief Financial Officer, stated: "We believe that 2010 was a good year for Seanergy, as we increased our owned fleet to 20 vessels and our total assets from $538.5 million at the end of 2009 to $696.4 million at the end of 2010. As of December 31, 2010, our cash reserves were $64.2 million, reflecting $31.5 million in cash generated from operations.

In the fourth quarter of 2010, our company operated a fleet of 20 vessels earning a time charter equivalent ("TCE") rate of $15,277 as compared to an average of 11 vessels and TCE rate of $17,331 during the fourth quarter of 2009. The decreased TCE results from lower market imposed time charter rates earned by our vessels, whose original charter agreements expired during 2009.

Furthermore, we have accelerated the drydocking for three vessels initially scheduled for 2011 to the third and fourth quarters of 2010. As a result of the timing of these inspections, Seanergy incurred more off-hire days than expected during the fourth quarter of 2010, resulting in lower revenues and higher operating expenses than anticipated.

Our vessels have secured period employment of 79% for 2011, 38% for 2012 and 19% for 2013.

For the year ended 2010, our company operated a fleet of 16.6 vessels on average, earning a TCE rate of $16,532 as compared to an average of 7.9 vessels and TCE rate of $32,909 during 2009. In 2010, our daily vessel operating expenses decreased to $5,077 from $5,603 in 2009, and daily general and administrative expenses decreased to $1,375 in 2010 from $2,304 in 2009."

Fourth Quarter 2010 Financial Results:

Net Revenues

Net Revenues for the fourth quarter of 2010 increased to $25.9 million from $17.3 million in the same quarter in 2009. The increase in revenues, despite earning a lower average TCE rate, reflects the increased size of our fleet, which resulted in additional operating days.

EBITDA, Operating Income

EBITDA was $10.7 million for the fourth quarter of 2010 as compared to $7.4 million in the same quarter in 2009.

Operating income amounted to $1.1 million for the three months ended December 31, 2010, as compared to an operating income of $0.8 million for the same quarter in 2009.

The rise in EBITDA and operating income in the fourth quarter was mainly a result of revenue growth, which was adequate to offset the effects of higher operating expenditures and depreciation expense.

Please refer to the EBITDA reconciliation section, contained in this press release.

Net Loss

For the fourth quarter of 2010, Net Loss amounted to $2.6 million, or $0.02 per basic and diluted share, as compared to Net Loss of $3.2 million, or $0.10 per basic and diluted share, in the same quarter of 2009, based on weighted average common shares outstanding of 109,723,980 basic and diluted for 2010; 33,255,170 basic and diluted for 2009.

The loss is primarily the result of a 12% decrease in TCE to $15,277 per day in the fourth quarter of 2010 from $17,331 per day in the same quarter of 2009, as well as an increase in net interest expense to $3.8 million from $2.3 million.

Year Ended 2010 Financial Results:

Net Revenues

Net Revenues for the year ended December 31, 2010 were $95.9 million as compared to $87.9 million in the same period in 2009. Our vessels earned a lower average TCE rate during 2010, yet this was counteracted by the increase in the number of operating days associated with the growth in the size of our fleet.

EBITDA, Operating Income

EBITDA for the twelve months ending December 31, 2010 was $47.3 million as compared to $66.6 million in the previous year.

Operating Income amounted to $18.4 million for the year ended December 31, 2010, as compared to operating income of $40.4 million for the same period in 2009. The decrease in operating income came as a result of increased operating and voyage expenses, as well as increased depreciation and dry docking expenses associated with operating a larger fleet. For 2010, operating expenses increased to $30.7 million, from $16.2 million in the previous year.

Net Income

Net Income for 2010 amounted to $1.6 million before non controlling interest. Net Income attributable to Seanergy was $0.1 million, or $0.00 per basic and diluted share for the period ended December 31, 2010, as compared to Net Income of $30.0 million, or $1.16 per basic and $1.00 per diluted share, for the same period in 2009, based on weighted average common shares outstanding of 87,916,947 basic and diluted for 2010 and 25,882,967 and 30,529,281 basic and diluted for 2009, respectively.

The decrease in net income is the result of lower operating income earned in 2010, combined with higher interest expenses and losses on interest rate swaps. In particular, net interest and finance costs increased to $12.6 million in 2010, from $7.2 million in 2009 due to additional interest expense charges relating to MCS loan facilities. Losses on swap agreements for 2010 rose to $4.2 million from $1.6 million in 2009.

Operating Cash Flow and Cash Flow from Investments

In 2010, Seanergy generated $31.5 million of cash from operations, as opposed to $43.2 million in 2009. The decrease is mainly attributable to lower net income earned in the current year.

Investment cash inflows for 2010 amounted to $7.9 million, as compared to $36.4 million in 2009. Positive cash flows reflect the cash acquired as part of the MCS and BET transactions in 2010 and 2009.

Debt Repayment and capital expenditure requirements for 2011

Seanergy ended 2010 with $399.5 million of outstanding debt, as compared to $300.6 million at the end of 2009. The increase is associated with additional debt assumed through the acquisition of the MCS fleet.

Repayment of principal on our debt facilities is expected to reach $53.4 million over the course of 2011. In terms of maintenance capital expenditure, we expect to incur about $4.1 million in drydocking costs for the year ending 2011.

Fleet Data:

                                                 Three Months  Three Months
                        Year Ended   Year Ended      Ended        Ended
                        December 31, December 31, December 31, December 31,
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
Fleet Data
                        -----------  -----------  -----------  -----------
Average number of
 vessels (1)                   16.6          7.9         20.0         11.0
                        -----------  -----------  -----------  -----------
Ownership days (2)            6,040        2,895        1,840        1,012
                        -----------  -----------  -----------  -----------
Available days (3)            5,662        2,638        1,642          983
                        -----------  -----------  -----------  -----------
Operating days (4)            5,627        2,614        1,630          969
                        -----------  -----------  -----------  -----------
Fleet utilization (5)          93.2%        90.3%        88.6%        95.8%
                        -----------  -----------  -----------  -----------
Fleet utilization
 excluding drydocking
 off hire days (6)             99.4%        99.1%        99.3%        98.6%
                        -----------  -----------  -----------  -----------
Average Daily Results
                        -----------  -----------  -----------  -----------
TCE rate (7)            $    16,532  $    32,909  $    15,277  $    17,331
                        -----------  -----------  -----------  -----------
Vessel operating
 expenses (8)           $     5,077  $     5,603  $     5,689  $     6,389
                        -----------  -----------  -----------  -----------
Management fee (9)      $       438  $       592  $       394  $       628
                        -----------  -----------  -----------  -----------
Total vessel operating
 expenses (10)          $     5,515  $     6,195  $     6,083  $     7,017
                        -----------  -----------  -----------  -----------

(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 year ended December 31, 2010, the Company incurred 378 off hire days for vessel scheduled drydocking. During the three months ended December 31, 2010, the Company incurred 198 off hire days for vessel scheduled drydocking.

(4) Operating days are the number of available days in a period less the aggregate number of days that vessels are off-hire due to 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
                        Year Ended December 31,         December 31,
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
Net revenues from
 vessels                     95,856       87,897       25,861       17,289

Voyage expenses              (2,833)      (1,872)        (959)        (495)
                        -----------  -----------  -----------  -----------

Net operating revenues       93,023       86,025       24,902       16,794
                        ===========  ===========  ===========  ===========

Operating days                5,627        2,614        1,630          969

Daily time charter
 equivalent rate             16,532       32,909       15,277       17,331

(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
                         Year Ended December 31,        December 31,
                        ------------------------- -------------------------
                            2010         2009         2010         2009
                        ------------ ------------ ------------ ------------
Operating expenses            30,667       16,222       10,467        6,466

Ownership days                 6,040        2,895        1,840        1,012

Daily vessel operating
 expenses                      5,077        5,603        5,689        6,389

(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.

Fleet Profile and Employment:

Fleet Profile as of February 17, 2011
                                                                   Charter
Vessel Name             Vessel   Capacity  Year                    Expiry
                         Class     (DWT)   Built Charter Rate ($)  (latest)
                       --------- --------- ----- ---------------- ---------
M/V Bremen Max           Panamax    73,503  1993 spot positioning Feb. 2011
                       --------- --------- ----- ---------------- ---------
M/V Hamburg Max (1)      Panamax    72,338  1994           21,500 Oct. 2012
                       --------- --------- ----- ---------------- ---------
M/V Davakis G.          Supramax    54,051  2008 spot positioning Feb. 2011
                       --------- --------- ----- ---------------- ---------
M/V Delos Ranger        Supramax    54,051  2008 spot positioning Feb. 2011
                       --------- --------- ----- ---------------- ---------
M/V African Zebra (2)   Handymax    38,623  1985            7,500 Sep. 2011
                       --------- --------- ----- ---------------- ---------
M/V African Oryx (2)   Handysize    24,110  1997            7,000 Sep. 2011
                       --------- --------- ----- ---------------- ---------
M/V BET Commander       Capesize   149,507  1991           24,000 Dec. 2011
                       --------- --------- ----- ---------------- ---------
M/V BET Fighter         Capesize   173,149  1992           25,000 Sep. 2011
                       --------- --------- ----- ---------------- ---------
M/V BET Prince          Capesize   163,554  1995           25,000 Jan. 2012
                       --------- --------- ----- ---------------- ---------
M/V BET Scouter         Capesize   171,175  1995           26,000 Oct. 2011
                       --------- --------- ----- ---------------- ---------
M/V BET Intruder         Panamax    69,235  1993           15,500 Sep. 2011
                       --------- --------- ----- ---------------- ---------
                                                  Floating, BHSI
M/V Fiesta (3)         Handysize    29,519  1997           linked Nov. 2013
                       --------- --------- ----- ---------------- ---------
M/V Pacific Fantasy                               Floating, BHSI
 (3)                   Handysize    29,538  1996           linked Jan. 2014
                       --------- --------- ----- ---------------- ---------
M/V Pacific Fighter                               Floating, BHSI
 (3)                   Handysize    29,538  1998           linked Nov. 2013
                       --------- --------- ----- ---------------- ---------
M/V Clipper Freeway                               Floating, BHSI
 (3)                   Handysize    29,538  1998           linked Feb. 2014
                       --------- --------- ----- ---------------- ---------
M/V African Joy (4)    Handysize    26,482  1996           14,000 Nov. 2011
                       --------- --------- ----- ---------------- ---------
M/V African Glory (5)  Handysize    24,252  1998            7,000 Nov. 2012
                       --------- --------- ----- ---------------- ---------
M/V Asian Grace (6)    Handysize    20,412  1999            7,000 Sep. 2012
                       --------- --------- ----- ---------------- ---------
M/V Clipper Glory      Handysize    29,982  2007           25,000 Aug. 2012
                       --------- --------- ----- ---------------- ---------
M/V Clipper Grace      Handysize    30,548  2007           25,000 Aug. 2012
                       --------- --------- ----- ---------------- ---------
Total                            1,293,105
                       --------- --------- ----- ---------------- ---------

(1) Represents profit sharing arrangement at a floor rate of $21,500 per day and a ceiling of $25,500 per day, with a 50% profit sharing arrangement to apply to any amount in excess of the ceiling. The spread between floor and ceiling will accrue 100% to Seanergy. The base used for the calculation of the rate is the Time Charter Average of the Baltic Panamax Index.

(2) Represents floor charter rates excluding a 50% profit share distributed equally between the Company and the charterer calculated on the adjusted Time Charter Average of the Baltic Supramax Index ("BSI").

(3) Time Charter Average of the Baltic Handysize Index increased by 100.63% minus Opex.

(4) The charterer has the option to extend the time charter agreement for an additional 11 to 13 months at the same rate.

(5) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $12,000 per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer applicable between the $7,000 floor and $12,000 ceiling and, for any amount in excess of the ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time charter agreement with a profit sharing arrangement is an open ended contract with a 6 months mutual notice following November 2012.

(6) Represents profit sharing arrangement at a floor rate of $7,000 per day and a ceiling of $11,000 per day, with a profit sharing arrangement of 75% for the Company and 25% for the charterer applicable between the $7,000 floor and $11,000 ceiling and, for any amount in excess of the ceiling, profit sharing of 50% for the Company and 50% for the charterer. The calculation of the rate will be based on the adjusted Time Charter Average of the BSI. The two (2) year time charter agreement with a profit sharing arrangement is an open ended contract with a 6 months mutual notice following September 2012.

During the fourth quarter 2010, we secured time charters for three of our vessels as follows:

Following the completion of its drydocking, the M/V Bremen Max, a 1993 built and 73,503 dwt Panamax dry bulk carrier, entered into a time charter trip from Zhousan to the Mediterranean with a charterer we believe to be first class at a gross charter rate of $10,000 per day. The vessel commenced its charter on December 1, 2010.

The M/V Davakis G, a 2008 built and 54,051 dwt Supramax dry bulk carrier, entered into a time charter agreement with a charterer we believe to be first class, at a charter rate of $10,000 per day. The vessel commenced its charter on December 6, 2010.

The M/V Delos Ranger, a 2008 built and 54,051 dwt Supramax dry bulk carrier, entered into a time charter trip from Taiwan to Nigeria with a charterer we believe to be first class at a charter rate of $8,000 per day. The vessel commenced its charter on January 7, 2011.

Following these charter arrangements, the Company has secured 79% of its operating days for 2011, 38% for 2012 and 19% for 2013 under period employment.

EBITDA Reconciliation:
                     Seanergy Maritime Holdings Corp.
              Reconciliation of Net Income to Adjusted EBITDA
           (All amounts expressed in thousands of U.S. Dollars)
                                                Three Months  Three Months
                     Year Ended    Year Ended      Ended         Ended
                    December 31,  December 31,  December 31,  December 31,
                        2010          2009          2010          2009
                    ------------- ------------- ------------  ------------
Net income
 attributable to
 Seanergy Maritime
 Holdings                     132        30,052       (2,629)       (3,213)
                    ------------- ------------- ------------  ------------
Plus: Net income
 attributable to
 the noncontrolling
 interest                   1,509         1,517            0         1,584
                    ------------- ------------- ------------  ------------
Plus: Interest and
 finance costs, net
 (including
 interest income)          12,573         7,186        3,843         2,304
                    ------------- ------------- ------------  ------------
Plus: Income taxes             60             0           44             0
                    ------------- ------------- ------------  ------------
Plus: Depreciation
 and amortization          32,985        27,857        9,472         6,745
                    ------------- ------------- ------------  ------------
EBITDA                     47,259        66,612       10,730         7,420
                    ------------- ------------- ------------  ------------
Plus: Loss (Gain)
 on interest rate
 swaps                      4,164         1,575         (171)          164
                    ------------- ------------- ------------  ------------
Adjusted EBITDA            51,423        68,187       10,559         7,584
                    ------------- ------------- ------------  ------------


                     Seanergy Maritime Holdings Corp.
  Reconciliation of Net Cash Provided by Operating Activities to Adjusted
                                  EBITDA
           (All amounts expressed in thousands of U.S. Dollars)
                                                Three Months  Three Months
                     Year Ended    Year Ended      Ended         Ended
                    December 31,  December 31,  December 31,  December 31,
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------
Net cash flow
 provided by
 operating
 activities               31,537        43,208         5,240         6,763
                    ------------  ------------  ------------  ------------
Changes in
 operating assets
 and liabilities          (2,038)        3,046        (3,100)       (3,721)
                    ------------  ------------  ------------  ------------
Fair value of
 contracts                   319           125            79            84
                    ------------  ------------  ------------  ------------
Change in fair
 value of financial
 instruments                  27          (189)          800           778
                    ------------  ------------  ------------  ------------
Payments for
 dry-docking               5,519         7,119         4,012         1,367
                    ------------  ------------  ------------  ------------
Amortization and
 write-off of
 deferred charges           (738)         (696)         (188)         (155)
                    ------------  ------------  ------------  ------------
Interest and
 finance costs, net
 (includes interest
 income)                  12,573         7,186         3,843         2,304
                    ------------  ------------  ------------  ------------
Gain from
 acquisition of
 subsidiary                    0         6,813             0             0
                    ------------  ------------  ------------  ------------
Income taxes                  60             0            44             0
                    ------------  ------------  ------------  ------------
EBITDA                    47,259        66,612        10,730         7,420
                    ------------  ------------  ------------  ------------
Plus: Loss (Gain)
 on interest rate
 swaps                     4,164         1,575          (171)          164
                    ------------  ------------  ------------  ------------
Adjusted EBITDA           51,423        68,187        10,559         7,584
                    ------------  ------------  ------------  ------------

EBITDA consists of earnings before interest and finance cost, taxes, depreciation and amortization. Adjusted EBITDA consists of earnings before interest and finance cost, taxes, depreciation and amortization and gain or losses on interest rate swaps. EBITDA and adjusted EBITDA are not measurements of financial performance under accounting principles generally accepted in the United States of America, and do not represent cash flow from operations. EBITDA and adjusted EBITDA are presented solely as supplemental disclosures because management believes that they are common measures of operating performance in the shipping industry.

Subsequent Events:

Drydocking and Maintenance Schedule

The M/V African Zebra's scheduled drydocking commenced on January 4, 2011 and is expected to be completed by the end of February 2011 at a cost of approximately $1.0 million.

Equity Incentive Plan

On January 12, 2011, the Board adopted the Seanergy Maritime Holdings Corp. 2011 Equity Incentive Plan ("the Plan"). A total of 8,750,000 shares of our common stock are issuable under the Plan, which is administered by the Compensation Committee of the Board of Directors. Under the Plan, our officers, key employees and directors may be granted incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, and unrestricted stock at the discretion of our Compensation Committee. All share-based payments, including grants of employee stock options to employees, are recognized as an expense in the financial statements and such costs are measured at the fair value of the award. As of December 31, 2010, 2009 and 2008, Seanergy did not have any share-based payments.

Financial Undertakings

The Company is required to maintain semiannually a minimum equity ratio requirement of 0.30:1.00 under the Citibank facility agreement relating to BET. As of December 31, 2010, the Company did not meet this minimum equity ratio requirement. The Company has requested, and the lender has indicated its willingness to provide, a reduction to the minimum equity ratio requirement from 0.30:1.00 to 0.175:1.00 until January 3, 2012. The Company expects the request to be granted, thus the presentation of the long-term debt in the attached consolidated financial statements assumes that the reduction of the minimum equity ratio requirement will be granted, and accordingly, all of the Company's long-term debt continues to be classified as non-current as of December 31, 2010. To the extent that the Company is unable to obtain this reduction, any long-term debt for which the Company has been unable to receive a reduction on the minimum equity ratio requirement, will be required to be classified as current, reflecting the lender's ability to call the debt at any time at its option.

Conference Call Details:

The Company's management team will host a conference call to discuss the financial results today, Thursday, February 17, 2011 at 10:00 A.M. EST. 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 February 24, 2011. 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#.

Slides and Audio Webcast:

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

                     Seanergy Maritime Holdings Corp.
                       Consolidated Balance Sheets
                        December 31, 2010 and 2009
   (In thousands of US Dollars, except for share data, unless otherwise
                                 stated)

                                                      2010
                                                   (Unaudited)    2009
                                                   ----------- -----------
ASSETS
Current assets:
    Cash and cash equivalents                           53,787      63,607
    Restricted cash                                     10,385           -
    Accounts receivable trade, net                         999         495
    Due from related parties                                 -         265
    Inventories                                          1,459       1,126
    Other current assets                                 1,829       1,980
                                                   ----------- -----------
      Total current assets                              68,459      67,473
                                                   ----------- -----------
Fixed assets
    Vessels, net                                       597,372     444,820
    Office equipment, net                                   29          20
                                                   ----------- -----------
      Total fixed assets                               597,401     444,840
                                                   ----------- -----------
Other assets
    Goodwill                                            17,275      17,275
    Deferred charges                                    13,086       8,684
    Other non-current assets                               180         180
                                                   ----------- -----------
  TOTAL ASSETS                                         696,401     538,452
                                                   =========== ===========

LIABILITIES AND EQUITY
Current liabilities:
    Current portion of long-term debt                   53,380      33,206
    Trade accounts and other payables                    2,340         990
    Due to underwriters                                      -          19
    Due to related parties                               4,025           -
    Accrued expenses                                     3,491       1,719
    Accrued interest                                     1,009       1,508
    Financial instruments                                5,787       3,556
    Below market acquired time charters                    266           -
    Deferred revenue - related party                     1,041         894
    Deferred revenue                                     1,452         246
                                                   ----------- -----------
      Total current liabilities                         72,791      42,138
                                                   ----------- -----------
Long-term debt, net of current portion                 346,168     267,360
Financial instruments, net of current portion            2,777       1,550
Below market acquired time charters                          -         585
                                                   ----------- -----------
      Total liabilities                                421,736     311,633
                                                   ----------- -----------

Commitments and contingencies                                -           -

EQUITY
    Seanergy shareholders' equity
    Preferred stock, $0.0001 par value; 1,000,000
     shares authorized; none issued                          -           -
    Common stock, $0.0001 par value; 500,000,000
     and 200,000,000 authorized shares as at
     December 31, 2010 and 2009, respectively;
     109,723,980 and 33,255,170 shares issued and
     outstanding as at December 31, 2010 and 2009,
     respectively                                           11           3
    Additional paid-in capital                         279,268     213,232
    Accumulated deficit                                 (4,614)     (4,746)
                                                   ----------- -----------
      Total Seanergy shareholders' equity              274,665     208,489
                                                   ----------- -----------
    Noncontrolling interest                                  -      18,330
                                                   ----------- -----------
      Total equity                                     274,665     226,819
                                                   ----------- -----------
TOTAL LIABILITIES AND EQUITY                           696,401     538,452
                                                   =========== ===========








                      Seanergy Maritime Holdings Corp.
                      Consolidated Statements of Income
       For the three months and year end December 31, 2010 and 2009
  (In thousands of US Dollars, except for share and per share data, unless
                             otherwise stated)

                           Three months Ended            Year Ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2010        2009         2010
                        (Unaudited)  (Unaudited)  (Unaudited)      2009
                        -----------  -----------  -----------  -----------
Revenues:
  Vessel revenue -
   related party              8,569       13,791       44,175       83,903
  Vessel revenue             18,100        4,023       54,777        6,340
  Commissions - related
   party                       (319)        (100)      (1,546)      (2,226)
  Commissions                  (489)        (425)      (1,550)        (120)
                        -----------  -----------  -----------  -----------
  Vessel revenue, net        25,861       17,289       95,856       87,897

Expenses:
  Direct voyage expenses     (1,199)        (273)      (2,399)        (753)
  Vessel operating
   expenses                 (10,467)      (6,466)     (30,667)     (16,222)
  Voyage expenses -
   related party                240         (222)        (434)      (1,119)
  Management fees -
   related party               (597)        (636)      (2,328)      (1,715)
  Management fees              (129)           -         (316)           -
  General and
   administration
   expenses                  (2,985)      (1,949)      (7,606)      (5,928)
  General and
   administration
   expenses - related
   party                       (175)        (195)        (697)        (742)
  Amortization of
   deferred dry-docking
   costs                     (1,268)        (648)      (3,657)      (1,045)
  Depreciation               (8,204)      (6,097)     (29,328)     (26,812)
  Gain from acquisition
   of subsidiary                  -            -            -        6,813
                        -----------  -----------  -----------  -----------

Operating income              1,077          803       18,424       40,374

Other income (expense),
 net:
  Interest and finance
   costs                     (3,883)      (2,370)     (12,931)      (7,230)
  Interest and finance
   costs - shareholders           -            -            -         (386)
  Interest income                40           66          358          430
  Gain (loss) on
   financial
   instruments                  171         (164)      (4,164)      (1,575)
  Foreign currency
   exchange gain
   (loss), net                   10           36           14          (44)
                        -----------  -----------  -----------  -----------
                             (3,662)      (2,432)     (16,723)      (8,805)
                        -----------  -----------  -----------  -----------
Net (loss) income
 before taxes                (2,585)      (1,629)       1,701       31,569
                        -----------  -----------  -----------  -----------
  Income taxes                  (44)           -          (60)           -
                        -----------  -----------  -----------  -----------
Net (loss) income            (2,629)      (1,629)       1,641       31,569
                        -----------  -----------  -----------  -----------

  Less: Net (income)
   attributable to the
   noncontrolling
   interest                       -       (1,584)      (1,509)      (1,517)
                        -----------  -----------  -----------  -----------
Net (loss) income
 attributable to
 Seanergy Maritime
 Holdings Corp.
 Shareholders                (2,629)      (3,213)         132       30,052
                        ===========  ===========  ===========  ===========

Net (loss) income per
 common share
  Basic                       (0.02)       (0.10)        0.00         1.16
                        ===========  ===========  ===========  ===========
  Diluted                     (0.02)       (0.10)        0.00         1.00
                        ===========  ===========  ===========  ===========

Weighted average common
 shares outstanding
  Basic                 109,723,980   33,255,170   87,916,947   25,882,967
                        ===========  ===========  ===========  ===========
  Diluted               109,723,980   33,255,170   87,916,947   30,529,281
                        ===========  ===========  ===========  ===========








                      Seanergy Maritime Holdings Corp.
               Consolidated Statements of Changes in Equity
           For the years ended December 31, 2010, 2009 and 2008
   (In thousands of US Dollars, except for share data, unless otherwise
                                  stated)


                                                                Retained
                             Common stock          Additional   earnings/
                        ------------------------    paid-in   (Accumulated
                        # of Shares   Par Value     capital      deficit)
                        -----------  -----------  ------------ -----------

Balance, December 31,
 2007                    28,600,000            3       146,925       1,441
                        -----------  -----------  ------------ -----------
Net (loss) for the year
 ended December 31,
 2008                             -            -             -     (31,985)
Dividends paid                    -            -             -      (4,254)
Reclassification of
 common stock no longer
 subject to redemption   (6,370,773)           -        17,144           -
Reversal of underwriter
 fees forfeited to
 redeeming shareholders           -            -         1,433           -
Liquidation and
 dissolution common
 stock exchange                   -           (1)            1           -
Warrants exercised          132,000            -           858           -
                        -----------  -----------  ------------ -----------
Balance, December 31,
 2008                    22,361,227            2       166,361     (34,798)
                        -----------  -----------  ------------ -----------
Issuance of common
 stock to convert
 promissory note          6,585,868            1        29,596           -
Issuance of common
 stock due to earn-out    4,308,075            -        17,275           -
Gain from acquisition             -            -             -           -
Noncontrolling interest
 contribution                     -            -             -           -
Net income for the year
 ended December 31,
 2009                             -            -             -      30,052
                        -----------  -----------  ------------ -----------
Balance, December 31,
 2009                    33,255,170            3       213,232      (4,746)
                        -----------  -----------  ------------ -----------
Issuance of common
 stock                   26,945,000            3        28,523           -
Consolidation with
 subsidiaries acquired   49,523,810            5        37,513           -
Net income for the year
 ended December 31,
 2010                             -            -             -         132
                        -----------  -----------  ------------ -----------
Balance, December 31,
 2010 (Unaudited)       109,723,980           11       279,268      (4,614)
                        ===========  ===========  ============ ===========


                          Total
                         Seanergy        Non-
                       shareholders'  controlling    Total
                          equity       interest      Equity
                        -----------  -----------  -----------

Balance, December 31,
 2007                       148,369            -      148,369
                        -----------  -----------  -----------
Net (loss) for the year
 ended December 31,
 2008                       (31,985)           -      (31,985)
Dividends paid               (4,254)           -       (4,254)
Reclassification of
 common stock no longer
 subject to redemption       17,144            -       17,144
Reversal of underwriter
 fees forfeited to
 redeeming shareholders       1,433            -        1,433
Liquidation and
 dissolution common
 stock exchange                   -            -            -
Warrants exercised              858            -          858
                        -----------  -----------  -----------
Balance, December 31,
 2008                       131,565            -      131,565
                        -----------  -----------  -----------
Issuance of common
 stock to convert
 promissory note             29,597            -       29,597
Issuance of common
 stock due to earn-out       17,275            -       17,275
Gain from acquisition             -        6,813        6,813
Noncontrolling interest
 contribution                     -       10,000       10,000
Net income for the year
 ended December 31,
 2009                        30,052        1,517       31,569
                        -----------  -----------  -----------
Balance, December 31,
 2009                       208,489       18,330      226,819
                        -----------  -----------  -----------
Issuance of common
 stock                       28,526            -       28,526
Consolidation with
 subsidiaries acquired       37,518      (19,839)      17,679
Net income for the year
 ended December 31,
 2010                           132        1,509        1,641
                        -----------  -----------  -----------
Balance, December 31,
 2010 (Unaudited)           274,665            -      274,665
                        ===========  ===========  ===========








                      SEANERGY MARITIME HOLDINGS CORP.
                   Consolidated Statements of Cash Flows
            For the years ended December 31, 2010, 2009 and 2008
(All amounts in footnotes in thousands of US Dollars, except for share and
                              per share data)

                                        2010
                                     (Unaudited)      2009         2008
                                     -----------  -----------  -----------
Cash flows from operating
 activities:
Net income (loss)                          1,641       31,569      (31,985)
Adjustments to reconcile net income
 to net cash provided by operating
 activities:
  Impairment of goodwill                       -            -       44,795
  Impairment of vessels                        -            -        4,530
  Depreciation                            29,328       26,812        9,929
  Amortization of deferred finance
   charges                                   738          696          224
  Amortization of deferred
   dry-docking costs                       3,657        1,045            -
  Payments for dry-docking                (5,519)      (7,119)           -
  Change in fair value of financial
   instruments                               (27)         189            -
  Amortization of acquired time
   charters                                 (319)        (125)           -
  Gain on acquisition                          -       (6,813)           -
  Changes in operating assets and
   liabilities:
    (Increase) decrease in operating
     assets
    Due from related parties                 265        1,760         (577)
    Inventories                              (70)       1,222         (872)
    Accounts receivable trade, net          (493)        (263)           -
    Other current assets                     904         (191)        (743)
    Other non-current assets                   -         (180)           -
    Increase (decrease) in
     operating liabilities
    Trade accounts and other
     payables                                 37       (3,299)          86
    Due to underwriters                      (19)        (400)      (3,555)
    Accrued expenses                      (2,071)        (885)         541
    Accrued charges on convertible
     note due to shareholders                  -          670          132
    Due to related parties                 4,025            -            -
    Premium amortization on
     convertible note due to
     shareholders                              -         (379)           -
    Accrued interest                      (1,002)       1,176          166
    Deferred revenue - related party         148       (2,523)       3,029
    Deferred revenue                         314          246            -
                                     -----------  -----------  -----------
Net cash provided by operating
 activities                               31,537       43,208       25,700
                                     -----------  -----------  -----------
Cash flows from investing
 activities:
Acquisition of business, including
 of cash acquired                         17,913       36,374     (375,833)
Funds placed in trust account from
 offerings                                     -            -      232,923
Additions to vessels                           -            -            -
Additions to office furniture and
 equipment                                   (28)         (21)          (9)
Acquisition of noncontrolling
 interest                                (10,000)           -            -
                                     -----------  -----------  -----------
Net cash provided by (used in)
 investing activities                      7,885       36,353     (142,919)
                                     -----------  -----------  ----------- 
Cash flows from financing
 activities:
Redemption of common shares                    -            -      (63,705)
Proceeds from warrants exercised               -            -          858
Proceeds from long term debt and
 revolving facility                            -            -      219,845
Deemed distribution upon acquisition
 of MCS                                   (2,054)           -            -
Net proceeds from issuance of common
 stock                                    28,526            -            -
Repayments of long term debt             (67,941)     (54,878)      (7,500)
Dividends paid                                 -            -       (4,254)
Deferred finance charges                    (841)           -       (2,693)
Noncontrolling interest contribution           -       10,000            -
Restricted cash (retained) released       (6,932)       1,381            -
                                     -----------  -----------  -----------
Net cash (used in) provided by
 financing activities                    (49,242)     (43,497)     142,551
                                     -----------  -----------  -----------
Net (decrease) increase in cash and
 cash equivalents                         (9,820)      36,064       25,332
Cash and cash equivalents at
 beginning of period                      63,607       27,543        2,211
                                     -----------  -----------  -----------
Cash and cash equivalents at end of
 period                                   53,787       63,607       27,543
                                     ===========  ===========  ===========
SUPPLEMENTAL CASH FLOW INFORMATION
  Cash paid for interest                  11,070        6,447        3,402
Non cash investing and financing
 activities
  Issuance of common shares at fair
   value for the acquisition of BET       30,952            -            -
  Issuance of common shares at fair
   value for the acquisition of MCS       26,743            -            -
  Deemed distribution to controlling
   shareholder                               (10)           -            -

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp., the successor to Seanergy Maritime 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.

The Company's initial fleet comprised two Panamax, two Supramax, one Handymax and one Handysize dry bulk carriers that Seanergy purchased and took delivery of in the third quarter of 2008 from companies associated with members of the Restis family. In August 2009, the Company acquired a controlling interest in BET, which owns four Capesize and one Panamax dry bulk carriers. In May 2010, the Company acquired a controlling interest in MCS, which owns nine Handysize dry bulk carriers. In September 2010, the Company completed the acquisition of the remaining 49% in MCS, and in October 2010 the Company completed the acquisition of the remaining 50% in BET.

Following the MCS and BET acquisitions, the Company has a wholly-owned operating fleet of 20 drybulk carriers (four Capesize, three Panamax, two Supramax, one Handymax and ten Handysize vessels) with a total carrying capacity of approximately 1,293,105 dwt and an average fleet age of 13 years.

The Company's common stock and warrants trade on the NASDAQ Global Market under the symbols "SHIP" and "SHIP.W", respectively.

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.

Contact Information


  • For further information please contact:

    Seanergy Maritime Holdings Corp.

    Dale Ploughman
    Chief Executive Officer
    Christina Anagnostara
    Chief Financial Officer
    Tel: +30 210 9638461
    E-mail: ir@seanergymaritime.com

    Investor Relations / Media
    Capital Link, Inc.
    Paul Lampoutis
    230 Park Avenue Suite 1536
    New York, NY 10169
    Tel: (212) 661-7566
    E-mail: seanergy@capitallink.com