SOURCE: Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp.

November 16, 2010 16:05 ET

Seanergy Maritime Holdings Corp. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2010

ATHENS, GREECE--(Marketwire - November 16, 2010) - Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) (NASDAQ: SHIPW) announced today its operating results for the third quarter and nine months ended September 30, 2010.


Third Quarter 2010 Financial Highlights:

-- Net Revenues of $29.0 million

-- Adjusted EBITDA of $17.2 million

-- Operating Income of $8.2 million

-- Net Income of $2.9 million


Nine Months 2010 Financial Highlights:

-- Net Revenues of $69.9 million

-- Adjusted EBITDA of $40.9 million

-- Operating Income of $17.3 million

-- Net Income of $2.8 million


Dale Ploughman, the Company's Chief Executive Officer, stated: "The third quarter of 2010 was another important quarter in our development as we completed successfully the acquisition of the remaining 49% ownership interest in Maritime Capital Shipping Limited ('MCS'). In addition, on October 22, 2010 we completed the acquisition of the remaining 50% ownership interest in Bulk Energy Transport (Holdings) Limited ('BET') and, as a result, we now own 100% of MCS and BET and their fleets. These transactions increased the size of our wholly owned fleet to 20 vessels, and we believe these transactions significantly improved our income generating capabilities and simplified our balance sheet.

"Consistent with our strategy of seeking profitable long term employment for our vessels, during the third quarter we secured new time charters for four of our vessels. We believe that these new time charters are with highly reputable charterers at attractive charter hire rates. Three of these time charters have profit sharing arrangements. Our time charter coverage is among the highest in the industry, which we believe provides cash flow stability and protection against the volatile freight rate environment coupled with upside potential, as five of our vessels in total are under profit sharing arrangements that allow us to participate in market upswings.

"We continue to have discussions with our charterers about the vessels that are scheduled to be redelivered to us following the expiration of their contracts. Consistent with our strategy, we seek to re-employ these vessels at profitable rates.

"We believe that dry bulk fundamentals remain stable as we expect demand for core commodities, namely iron ore and coal, to remain strong from China and India. Industry sources project that over the next 10 years, China's GDP will continue growing at 7% per year on average, while over the next two years India's GDP is expected to grow at an annual rate of 9%. Industry sources further indicate that a catalyst for the dry bulk industry in the fourth quarter 2010 is expected to be China's inventory buildup of iron ore and coal ahead of winter.

"Although the risk of oversupply is still a factor in the dry bulk market, the rate of actual deliveries remains unclear. Industry sources remain skeptical concerning the ability of Greenfield shipyards that have never built vessels before, to deliver vessels ordered, while at the same time vessel deliveries in 2011 reflect orders that were contracted at prices significantly above current market levels. In addition, the capital needed to finance the completion of these newbuildings remains a concern for many companies. We expect to benefit from the fact that there have been fewer deliveries of smaller types of vessels, such as the Handysize, which constitute a significant portion of our fleet, as this should make this segment more attractive for the owners.

"Our focus on accretive growth will remain a primary goal as we continue seeking attractive investments that can enhance shareholder value for the longer term."

Christina Anagnostara, the Company's Chief Financial Officer, stated: "As of September 30, 2010, our total assets were $713.9 million and our total debt was $409.9 million. As of September 30, 2010, our cash reserves were $76.3 million, reflecting $26.3 million in cash generated from operations. We believe that our significant cash position and cash flow visibility enable us to meet remaining debt repayments and anticipated capital expenditures in 2010.

"The Company now operates and owns a fleet of 20 vessels with secured period employment of 98% for 2010, 78% for 2011, 38% for 2012 and 19% for 2013, which in our opinion provides us with financial visibility with upside potential."

Third Quarter 2010 Financial Results

Net Revenues for the third quarter of 2010 increased to $29.0 million from $22.4 million in the same quarter in 2009.

The Company operated a fleet of 20 vessels on average during the third quarter of 2010, earning a time charter equivalent ("TCE") rate of $16,153 as compared to an average of 8.7 vessels and TCE rate of $30,052 during the third quarter of 2009. The decreased TCE results from lower market imposed time charter rates earned by our vessels whose original charters expired during the third quarter of 2009.

For the three months ended September 30, 2010, our vessel operating expenses increased to $8.1 million from $3.9 million in the same quarter of 2009 due to the increase of our fleet.

EBITDA was $15.7 million for the third quarter of 2010 as compared to $21.6 million in the same quarter in 2009 due to lower income received during the period. Adjusted EBITDA, which excludes losses on interest rate swap agreements, was $17.2 million for the third quarter of 2010.

Operating income amounted to $8.2 million for the three months ended September 30, 2010, as compared to an operating income of $17.4 million for the same quarter in 2009 due to higher operating expenses and depreciation from the addition of vessels to our fleet.

Net Income was $2.9 million, or $0.03 per basic and diluted share for the three months ended September 30, 2010, as compared to Net Income of $14.0 million, or $0.57 per basic and $0.46 per diluted share, for the same quarter in 2009, based on weighted average common shares outstanding of 109,723,980 basic and diluted for 2010, 24,580,378, basic, and 30,386,931 diluted, for 2009.

The decrease in Net Income is primarily the result of a 46% decrease in TCE to $16,153 per day for the three months ended September 30, 2010 as compared to $30,052 per day in the prior period as well as a $1.5 million increase in interest expense from $2.1 million to $3.6 million in the respective period.

Nine Months 2010 Financial Results

Net Revenues for the nine months ended September 30, 2010 were $69.9 million as compared to $70.7 million in the same period in 2009. The decrease in revenues is mainly attributable to lower TCE rates earned by our vessels. The decreased TCE results from lower market imposed time charter rates earned by our vessels whose original charters expired during the third quarter of 2009.

The Company operated a fleet of 15.4 vessels on average during the first nine months of 2010, earning a TCE rate of $17,039 as compared to an average of 6.9 vessels and TCE rate of $42,127 during the same period of 2009. For the nine months ended September 30, 2010, our vessel operating expenses increased to $20.2 million from $9.8 million in the same period of 2009 due to the increase of our fleet.

EBITDA was $36.5 million for the first nine months of 2010 as compared to $59.2 million in the same period in 2009 due to lower income received during the period and loss on interest rate swap agreements. Adjusted EBITDA, which excludes loss on interest rate swap agreements, was $40.9 million for the first nine months of 2010.

Operating Income amounted to $17.4 million for the nine months ended September 30, 2010, as compared to an Operating Income of $39.6 million for the same period in 2009.

Net Income was $2.8 million, or $0.03 per basic and diluted share for the period ended September 30, 2010, as compared to Net Income of $33.3 million, or $1.44 per basic and $1.13 per diluted share, for the same period in 2009, based on weighted average common shares outstanding of 80,568,056 basic and diluted for 2010 and 23,109,073, and 29,420,518 basic and diluted for 2009 respectively.

The decrease in Net Income is primarily the result of a 60% decrease in TCE to $17,039 per day for the nine months ended September 30, 2010 as compared to $42,127 per day in the prior period, as well as a $3.8 million increase in interest expense from $5.3 million to $9.1 million in the respective period and losses of $4.3 million relating to interest rate swap agreements of our debt facilities as compared to $1.4 million in the prior period.

Fleet Employment

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

The M/V African Glory, a 1998 built and 24,252 dwt Handysize dry bulk carrier, entered into a two (2) year time charter agreement with a profit sharing arrangement to a charterer we believe to be first class. The vessel is chartered 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 owners and 25% for charterers to apply to any amount between the floor and the ceiling. For any amount in excess of the ceiling the profit sharing arrangement will be 50% for owners and 50% for charterers. The calculation of the rate is based on the adjusted Time Charter Average of the Baltic Supramax Index ("BSI"). The vessel commenced its new charter on November 11, 2010.

The M/V African Joy, a 1996 built and 26,482 dwt Handysize dry bulk carrier, entered into a time charter agreement for a period of eleven (11) to thirteen (13) months with a charterer we believe to be first class at a charter rate of $14,000 per day. The charterer has the option to extend the charter for another eleven (11) to thirteen (13) months at the same rate. The vessel commenced its charter on October 30, 2010.

The M/V Asian Grace, a 1999 built and 20,412 dwt Handysize dry bulk carrier, entered into a two (2) year time charter agreement with a profit sharing arrangement to a charterer we believe to be first class. The vessel is chartered 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 to apply to any amount between the floor and the ceiling, and for any amount in excess of the ceiling, the profit sharing arrangement will be 50% for the Company and 50% for the charterer. The calculation of the rate is based on the adjusted Time Charter Average of the BSI. The vessel commenced its new charter on September 15, 2010.

The M/V Hamburg Max, a 1994 built, 72,338 dwt Panamax vessel, was entered into a time charter agreement for a period of about twenty three (23) to about twenty five (25) months with a profit sharing arrangement to a charterer we believe to be first class. The vessel is chartered with 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 the Company. The calculation of the rate is based on the Time Charter Average of the Baltic Panamax Index ("BPI"). The vessel commenced its new charter on August 31, 2010.

Following these charter arrangements, the Company has secured 98% of its operating days for 2010, 78% for 2011, 38% for 2012 and 19% for 2013 under period employment.

Conference Call Details:

The Company's management team will host a conference call to discuss the financial results tomorrow, November 17, 2010 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 November 24, 2010. 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.

Fleet Profile as of November 16, 2010

                                                                  Charter
                  Vessel   Capacity   Year                         Expiry
Vessel Name       Class     (DWT)     Built    Charter Rate ($)   (latest)
                --------- --------- --------- ------------------ ----------
M/V Bremen
 Max (1)          Panamax    73,503      1993                n/a        n/a
                --------- --------- --------- ------------------ ----------
M/V Hamburg
 Max (2)          Panamax    72,338      1994             21,500  Oct. 2012
                --------- --------- --------- ------------------ ----------
M/V Davakis G.   Supramax    54,051      2008             21,000  Jan. 2011
                --------- --------- --------- ------------------ ----------
M/V Delos
 Ranger          Supramax    54,051      2008             20,000  Mar. 2011
                --------- --------- --------- ------------------ ----------
M/V African
 Zebra (3)       Handymax    38,623      1985              7,500  Sep. 2011
                --------- --------- --------- ------------------ ----------
M/V African
 Oryx (3)       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
                --------- --------- --------- ------------------ ----------
                                              Time Charter
                                              Average of
                                              BHSI increased by
M/V Fiesta      Handysize    29,519      1997 100.63% minus Opex  Nov. 2013
                --------- --------- --------- ------------------ ----------
                                              Time Charter
                                              Average of
M/V Pacific                                   BHSI increased by
 Fantasy        Handysize    29,538      1996 100.63% minus Opex  Jan. 2014
                --------- --------- --------- ------------------ ----------
                                              Time Charter
                                              Average of
M/V Pacific                                   BHSI increased by
 Fighter        Handysize    29,538      1998 100.63% minus Opex  Nov. 2013
                --------- --------- --------- ------------------ ----------
                                              Time Charter
                                              Average of
M/V Clipper                                   BHSI increased by
 Freeway        Handysize    29,538      1998 100.63% minus Opex  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    29,987      2007             25,000  Aug. 2012
                --------- --------- --------- ------------------ ----------
    Total                 1,292,544  13.0 yrs
                --------- --------- --------- ------------------ ----------

(1) The M/V Bremen Max is expected to be employed following the completion of its current drydocking due by end of November 2010.

(2) 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 the Company. The base used for the calculation of the rate is the Time Charter Average of the BPI.

(3) 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 BSI.

(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.

Fleet Data:

                                  Nine       Nine       Three      Three
                                  Months     Months     Months     Months
                                  Ended      Ended      Ended      Ended
                                September  September  September  September
                                30, 2010   30, 2009   30, 2010   30, 2009
                                ---------  ---------  ---------  ---------
          Fleet Data
                                ---------  ---------  ---------  ---------
Average number of vessels (1)        15.4        6.9       20.0        8.7
                                ---------  ---------  ---------  ---------
Ownership days (2)                  4,200      1,883      1,840        797
                                ---------  ---------  ---------  ---------
Available days (3)                  4,020      1,654      1,762        739
                                ---------  ---------  ---------  ---------
Operating days (4)                  3,998      1,646      1,751        735
                                ---------  ---------  ---------  ---------
Fleet utilization (5)                95.2%      87.4%      95.2%      92.2%
                                ---------  ---------  ---------  ---------
Fleet utilization excluding
 drydocking off hire days (6)        99.5%      99.5%      99.4%      99.5%
                                ---------  ---------  ---------  ---------
     Average Daily Results
                                ---------  ---------  ---------  ---------
TCE rate (7)                       17,039     42,127     16,153     30,052
                                ---------  ---------  ---------  ---------
Vessel operating expenses (8)       4,810      5,181      4,408      4,937
                                ---------  ---------  ---------  ---------
Management fee (9)                    457        572        374        580
                                ---------  ---------  ---------  ---------
Total vessel operating expenses
 (10)                               5,267      5,753      4,782      5,517
                                ---------  ---------  ---------  ---------

(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 nine months ended September 30, 2010, the Company incurred 180 off hire days for vessel scheduled drydocking. During the three months ended September 30, 2010, the Company incurred 78 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)

                                  Nine Months Ended    Three Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Net revenues from vessels          69,867     70,662     29,046     22,352

Voyage expenses                    (1,746)    (1,321)      (762)      (264)
                                ---------  ---------  ---------  ---------

Net operating revenues             68,121     69,341     28,284     22,088
                                =========  =========  =========  =========

Operating days                      3,998      1,646      1,751        735

Daily time charter equivalent
 rate                              17,039     42,127     16,153     30,052

(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)

                                  Nine Months Ended    Three Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Operating expenses                 20,200      9,756      8,110      3,935

Ownership days                      4,200      1,883      1,840        797

Daily vessel operating expenses     4,810      5,181      4,408      4,937

(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.

Recent Developments:

Acquisition of remaining 50% ownership interest in BET

On October 22, 2010, we completed the acquisition from Mineral Transport Holdings Inc. ("Mineral Transport") of the remaining 50% ownership interest in BET for a consideration of approximately $33.0 million, which was paid in the form of: (i) $7.0 million in cash paid to Mineral Transport from our cash reserves and (ii) 24,761,905 of our common shares, with an aggregate agreed value of $26.0 million, that were issued to the Restis affiliate shareholders as nominees of Mineral Transport. As a result of the acquisition of the 50% interest, we now have 100% ownership of BET. We now have a wholly-owned operating fleet of 20 dry bulk vessels, consisting of four Capesize, three Panamax, two Supramax, one Handymax and 10 Handysize dry bulk carriers that have a combined cargo-carrying capacity of approximately 1.3 million dwt and an average fleet age of 13.0 years.

Drydocking and Maintenance Schedule

The BET Intruder's scheduled drydocking commenced on August 26, 2010, and was completed on October 27, 2010. The total cost of the BET Intruder's drydocking is approximately $1.3 million.

The African Joy's scheduled drydocking commenced on October 2, 2010 and was completed on October 29, 2010. The total cost of the African Joy's drydocking is approximately $1.15 million.

The Clipper Grace's scheduled drydocking commenced on October 23, 2010 and was completed on November 4, 2010. The total cost of the Clipper Grace's drydocking is approximately $0.9 million.

The BET Fighter's scheduled drydocking commenced on September 3, 2010 and was completed on November 16, 2010. The total cost of the BET Fighter's drydocking is approximately $1.4 million.

The Bremen Max's scheduled drydocking commenced on September 28, 2010 and is expected to be completed on November 25, 2010. The total cost of the Bremen Max's drydocking is estimated to be approximately $0.8 million.

                Seanergy Maritime Holdings Corp.
         Reconciliation of Net Income to Adjusted EBITDA
       (All amounts expressed in thousands of U.S. Dollars)

                 Nine Months    Nine Months   Three Months   Three Months
                    Ended          Ended          Ended          Ended
                September 30,  September 30,  September 30,  September 30,
                    2010           2009           2010           2009
                -------------- -------------  -------------  -------------
Net income
 attributable
 to Seanergy
 Maritime
 Holdings                2,761        33,265          2,939         13,983
                -------------- -------------  -------------  -------------
Plus: Net
 income
 attributable
 to the
 noncontrolling
 interest                1,509           (67)             -            (67)
                -------------- -------------  -------------  -------------
Plus: Interest
 and finance
 costs, net
 (including
 interest
 income)                 8,730         4,882          3,599          2,006
                -------------- -------------  -------------  -------------
Plus: Income
 taxes                      16             -            (15)             -
                -------------- -------------  -------------  -------------
Plus:
 Depreciation
 and
 amortization           23,513        21,113          9,129          5,673
                -------------- -------------  -------------  -------------
EBITDA                  36,529        59,193         15,652         21,595
                -------------- -------------  -------------  -------------
Plus: Loss on
 interest rate
 swaps                   4,335         1,411          1,574          1,411
                -------------- -------------  -------------  -------------
Adjusted EBITDA         40,864        60,604         17,226         23,006
                -------------- -------------  -------------  -------------



                    Seanergy Maritime Holdings Corp.
      Reconciliation of Net Cash Provided by Operating Activities to
                           Adjusted EBITDA
        (All amounts expressed in thousands of U.S. Dollars)

                 Nine Months    Nine Months   Three Months   Three Months
                    Ended          Ended          Ended          Ended
                September 30,  September 30,  September 30,  September 30,
                    2010           2009           2010           2009
                -------------  -------------  -------------  -------------
Net cash flow
 provided by
 operating
 activities            26,297         36,445          9,908          1,945
                -------------  -------------  -------------  -------------
Changes in
 operating
 assets and
 liabilities            1,062          8,083            594          9,867
                -------------  -------------  -------------  -------------
Fair value of
 contracts                240             42             80             42
                -------------  -------------  -------------  -------------
Change in fair
 value of
 financial
 instruments             (773)          (967)         1,195           (967)
                -------------  -------------  -------------  -------------
Payments for
 dry-docking            1,507          4,437            587          2,192
                -------------  -------------  -------------  -------------
Amortization
 and write-off
 of deferred
 charges                 (550)          (542)          (296)          (303)
                -------------  -------------  -------------  -------------
Interest and
 finance costs,
 net (includes
 interest
 income)                8,730          4,882          3,599          2,006
                -------------  -------------  -------------  -------------
Gain from
 acquisition                -          6,813              -          6,813
                -------------  -------------  -------------  -------------
Income taxes               16              -            (15)             -
                -------------  -------------  -------------  -------------
EBITDA                 36,529         59,193         15,652         21,595
                -------------  -------------  -------------  -------------
Plus: Loss on
 interest rate
 swaps                  4,335          1,411          1,574          1,411
                -------------  -------------  -------------  -------------
Adjusted EBITDA        40,864         60,604         17,226         23,006
                -------------  -------------  -------------  -------------

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.

                     Seanergy Maritime Holdings Corp.
                  Condensed Consolidated Balance Sheets
            September 30, 2010 (unaudited) and December 31, 2009
             (In thousands of US Dollars, except for share data,
                        unless otherwise stated)

                                             September 30,
                                                 2010       December 31,
                                              (unaudited)       2009
                                             -------------- --------------
ASSETS
Current assets:
    Cash and cash equivalents                        65,826         63,607
    Restricted cash                                  10,442              -
    Accounts receivable trade, net                      819            495
    Due from related parties                            287            265
    Inventories                                       1,704          1,126
    Prepaid insurance expenses                          668            623
    Prepaid expenses and other current
     assets - related parties                            76             58
    Insurance claims                                    238          1,260
    Other current assets                                711             39
                                             -------------- --------------
      Total current assets                           80,771         67,473
                                             -------------- --------------
Fixed assets:
    Vessels, net                                    605,575        444,820
    Office equipment, net                                33             20
                                             -------------- --------------
      Total fixed assets                            605,608        444,840
                                             -------------- --------------
Other assets
    Goodwill                                         17,275         17,275
    Deferred charges                                 10,051          8,684
    Other non-current assets                            180            180
                                             -------------- --------------
  TOTAL ASSETS                                      713,885        538,452
                                             ============== ==============

LIABILITIES AND EQUITY
Current liabilities:
    Current portion of long-term debt                53,380         33,206
    Trade accounts and other payables                 2,558            990
    Due to underwriters                                   -             19
    Due to related party                              7,000              -
    Accrued expenses                                  3,808          1,719
    Accrued interest                                  1,094          1,508
    Financial instruments                             5,421          3,556
    Deferred revenue - related party                  1,035            894
    Deferred revenue                                  1,500            246
                                             -------------- --------------
      Total current liabilities                      75,796         42,138
                                             -------------- --------------
    Long-term debt, net of current portion          356,507        267,360
    Financial instruments, net of current
     portion                                          3,943          1,550
    Below market acquired time charters                 345            585
                                             -------------- --------------
      Total liabilities                             436,591        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 September 30, 2010 and
     December 31, 2009, respectively;
     84,962,075 and 33,255,170 shares,
     issued and outstanding as at September
     30, 2010 and December 31, 2009,
     respectively                                         8              3
    Additional paid-in capital                      279,271        213,232
    Accumulated deficit                              (1,985)        (4,746)
                                             -------------- --------------
      Total Seanergy shareholders' equity           277,294        208,489
                                             -------------- --------------
    Noncontrolling interest                               -         18,330
                                             -------------- --------------
      Total equity                                  277,294        226,819
                                             -------------- --------------
TOTAL LIABILITIES AND EQUITY                        713,885        538,452
                                             ============== ==============



                    Seanergy Maritime Holdings Corp.
          Unaudited Condensed Consolidated Statements of Income
       For the three and nine months ended September 30, 2010 and 2009
      (In thousands of US Dollars, except for share and per share data,
                        unless otherwise stated)

                           Three months ended         Nine months ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
Revenues:
  Vessel revenue -
   related party             11,538       21,103       35,606       70,651
  Vessel revenue             18,539        1,887       36,677        1,887
  Commissions - related
   party                       (401)        (618)      (1,227)      (1,856)
  Commissions                  (630)         (20)      (1,189)         (20)
                        -----------  -----------  -----------  -----------
  Vessel revenue, net        29,046       22,352       69,867       70,662

Expenses:
  Direct voyage expenses       (537)         (42)      (1,072)        (480)
  Vessel operating
   expenses                  (8,110)      (3,935)     (20,200)      (9,756)
  Voyage expenses -
   related party               (225)        (222)        (674)        (841)
  Management fees              (129)           -         (187)           -
  Management fees -
   related party               (560)        (462)      (1,731)      (1,078)
  General and
   administration
   expenses                  (1,999)      (1,280)      (4,621)      (4,088)
  General and
   administration
   expenses - related
   party                       (174)        (193)        (522)        (548)
  Amortization of
   deferred dry-docking
   costs                       (922)        (387)      (2,389)        (397)
  Depreciation               (8,207)      (5,286)     (21,124)     (20,716)
  Gain from acquisition           -        6,813            -        6,813
                        -----------  -----------  -----------  -----------

Operating income              8,183       17,358       17,347       39,571

Other income (expense),
 net:
  Interest and finance
   costs                     (3,636)      (2,040)      (9,048)      (4,859)
  Interest and finance
   costs - shareholders           -          (74)           -         (386)
  Interest income                37          108          318          363
  Loss on financial
   instruments               (1,574)      (1,411)      (4,335)      (1,411)
  Foreign currency
   exchange
   (loss)/gain, net             (86)         (25)           4          (80)
                        -----------  -----------  -----------  -----------
                             (5,259)      (3,442)     (13,061)      (6,373)
                        -----------  -----------  -----------  -----------
Net income before
 taxes                        2,924       13,916        4,286       33,198
                        -----------  -----------  -----------  -----------
  Income taxes                   15            -          (16)           -
                        -----------  -----------  -----------  -----------
Net income                    2,939       13,916        4,270       33,198
                        -----------  -----------  -----------  -----------
  Less: Net loss/
   (income)
   attributable to the
   noncontrolling
   interest                       -           67       (1,509)          67
                        -----------  -----------  -----------  -----------
Net income attributable
 to Seanergy Maritime
 Holdings Corp.
 Shareholders                 2,939       13,983        2,761       33,265
                        ===========  ===========  ===========  ===========

Net income per common
 share

  Basic                        0.03         0.57         0.03         1.44
                        ===========  ===========  ===========  ===========

  Diluted                      0.03         0.46         0.03         1.13
                        ===========  ===========  ===========  ===========

Weighted average common
 shares outstanding

  Basic                 109,723,980   24,580,378   80,568,056   23,109,073
                        ===========  ===========  ===========  ===========

  Diluted               109,723,980   30,386,931   80,568,056   29,420,518
                        ===========  ===========  ===========  ===========




                    Seanergy Maritime Holdings Corp.
         Unaudited Condensed Consolidated Statements of Equity
         For the nine months ended September 30, 2010 and 2009
          (In thousands of US Dollars, except for share data,
                       unless otherwise stated)

                                                 Total
              Common stock    Addi-             Seanergy
            ----------------  tional  (Accumu-   share-     Non-
              # of      Par  paid-in   lated    holders' controlling  Total
              Shares   Value capital  deficit)   equity   interest   equity
            ---------- ----- -------- --------  -------- ---------  -------

Balance,
 December
 31, 2008   22,361,227     2  166,361  (34,798)  131,565         -  131,565
            ---------- ----- -------- --------  -------- ---------  -------
Net income
 for the
 nine months
 ended
 September
 30, 2009            -     -        -   19,283    19,283         -   19,283
            ---------- ----- -------- --------  -------- ---------  -------
Balance,
 September
 30, 2009   22,361,227     2  166,361  (15,515)  150,848         -  150,848
            ---------- ----- -------- --------  -------- ---------  -------

                                                 Total
              Common stock    Addi-             Seanergy
            ----------------  tional  (Accumu-   share-     Non-
              # of      Par  paid-in   lated    holders' controlling  Total
              Shares   Value capital  deficit)   equity   interest   equity
            ---------- ----- -------- --------  -------- ---------  -------

            ---------- ----- -------- --------  -------- ---------  -------
Balance,
 December
 31, 2009   33,255,170     3  213,232   (4,746)  208,489    18,330  226,819
            ---------- ----- -------- --------  -------- ---------  -------
Issuance of
 common
 stock      26,945,000     3   28,523        -    28,526         -   28,526
Consolidation
 with
 subsidiaries
 acquired   24,761,905     2   37,516        -    37,518   (19,839)  17,679
Net income
 for the
 nine months
 ended
 September
 30, 2010            -     -        -    2,761     2,761     1,509    4,270
            ---------- ----- -------- --------  -------- ---------  -------
Balance,
 September
 30, 2010   84,962,075     8  279,271   (1,985)  277,294         -  277,294
            ---------- ----- -------- --------  -------- ---------  -------




                    Seanergy Maritime Holdings Corp.
       Unaudited Condensed Consolidated Statements of Cash Flows
         For the nine months ended September 30, 2010 and 2009
                     (In thousands of US Dollars)

                                                        Nine months ended
                                                          September 30,
                                                      --------------------
                                                        2010       2009
                                                      ---------  ---------
Cash flows from operating activities:
Net income                                                4,270     33,198
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation                                           21,124     20,716
  Amortization of deferred finance charges                  550        542
  Amortization of deferred dry-docking costs              2,389        397
  Payments for dry-docking                               (1,507)    (4,437)
  Change in fair value of financial instruments             773        967
  Amortization of acquired time charters                   (240)       (42)
  Gain on acquisition                                         -     (6,813)
  Changes in operating assets and liabilities:
  (Increase) decrease in -
    Due from related parties                                (22)    (3,098)
    Inventories                                            (315)     1,137
    Accounts receivable trade, net                         (313)       232
    Insurance claims                                      1,028          -
    Other current assets                                   (107)      (320)
    Prepaid expenses                                          -        (10)
    Prepaid insurance expenses                              138         48
    Prepaid expenses and other current assets -
     related parties                                        (18)     1,587
    Other non-current assets                                  -       (180)
    Trade accounts and other payables                       165     (3,912)
    Due to underwriters                                     (19)      (343)
    Accrued expenses                                     (1,184)      (958)
    Accrued charges on convertible note due to
     shareholders                                             -        670
    Premium amortization on convertible note due
     to shareholders                                          -       (379)
    Accrued interest                                       (918)       227
    Deferred revenue - related party                        233     (2,846)
    Deferred revenue                                        270         62
                                                      ---------  ---------
Net cash provided by operating activities                26,297     36,445
                                                      ---------  ---------
Cash flows from investing activities:
Additions to vessels                                          -         (6)
Additions to office furniture and equipment                 (31)       (15)
Acquisition of subsidiary, including cash acquired       17,923     36,374
Due to related party                                     (3,000)         -
                                                      ---------  ---------
Net cash provided by investing activities                14,892     36,353
                                                      ---------  ---------
Cash flows from financing activities:
Deemed distribution upon acquisition of MCS              (2,064)         -
Net proceeds from issuance of common stock               28,526          -
Repayment of long term debt                             (57,602)   (47,750)
Deferred finance charges                                   (841)         -
Noncontrolling interest contribution                          -     10,000
Increase in restricted cash                              (6,989)    (2,183)
                                                      ---------  ---------
Net cash (used in) financing activities                 (38,970)   (39,933)
                                                      ---------  ---------
Net increase in cash and cash equivalents                 2,219     32,865
Cash and cash equivalents at beginning of period         63,607     27,543
                                                      ---------  ---------
Cash and cash equivalents at end of period               65,826     60,408
                                                      =========  =========
SUPPLEMENTAL CASH FLOW INFORMATION
  Cash paid for interest                                  7,659      4,089
  Non cash investing activities due to related party      7,000          -
  Issuance of common shares at fair value for the
   acquisition of BET                                    30,952          -

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 1,292,544 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