BOX SHIPS INC 
By ATHENS, Greece, May 19, 2014 /PRNewswire/ -- Paragon Shipping Inc. (NASDAQ: PRGN) ("Paragon Shipping" or the "Company"), a global shipping transportation company specializing in drybulk cargoes, announced today its results for the three months ended March 31, 2014.
Financial Highlights
(Expressed in thousands of United States Dollars, except for vessel data, TCE and share data)
Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
-------------- --------------
Average number of vessels 12.7 13.9
------------------------- ---- ----
Time charter equivalent
rate (TCE) (1) 11,388 8,557
----------------------- ------ -----
Net Revenue 13,453 13,429
----------- ------ ------
EBITDA (1) 2,551 (19,052)
--------- ----- -------
Adjusted EBITDA (1) 3,182 333
------------------ ----- ---
Net Loss (3,511) (25,885)
-------- ------ -------
Adjusted Net Loss (1) (2,880) (6,500)
-------------------- ------ ------
Loss per common share
basic and diluted (0.32) (1.24)
--------------------- ----- -----
Adjusted Loss per common
share basic and diluted
(1) (0.26) (0.31)
------------------------ ----- -----
(1) Please see the table at the
end of this release for a
reconciliation of TCE to
Charter Revenue, EBITDA
and Adjusted EBITDA to Net
Income /(Loss), Adjusted
Net Income /(Loss) to Net
Income /(Loss) and
Adjusted Earnings /(Loss)
per common share to
Earnings /(Loss) per
common share, the most
directly comparable
financial measures
calculated and presented
in accordance with
generally accepted
accounting principles in
the United States ("U.S.
GAAP").
Management Commentary
Commenting on the results, Mr. Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, "During the first quarter of 2014, we accomplished many of our previously announced objectives. In line with our growth strategy, we increased our operating fleet to 14 vessels by taking delivery of the M/V Proud Seas in January and entered into an agreement to sell our 4,800 TEU containership to an unrelated third party, which, after taking into consideration our latest agreement with the shipyard to reduce the contract price of the respective vessel by $770,000, will result in a positive net cash inflow to the Company of approximately $10.0 million. We also increased our newbuilding program to seven drybulk vessels by ordering three Eco-Design Kamsarmax vessels for delivery in 2015. Regarding our loan and credit facilities, we improved our financial flexibility by entering into two new loan agreements that streamlined our debt amortization profile and removed restrictive covenants that placed various restrictions on our ability to pay dividends. Last but not least, the Board of Directors has authorized an amount of up to $10.0 million to be used to buy back common shares in the open market over the next twelve months in an effort to increase shareholders' value."
Mr. Bodouroglou continued, "We continue to maintain full exposure to the drybulk spot charter market that enables us to capture any upside in rates as the drybulk market improves. However, during the first quarter of 2014, the drybulk market weakened, specifically for Panamax vessels, which, coupled with our two scheduled drydockings, translated into an adjusted loss of $6.5 million or $0.31 per share."
Mr. Bodouroglou concluded, "The Company is now positioned to take advantage of what we expect to be an improving drybulk market in the forthcoming years, which we expect will eventually enable the Company to resume paying cash dividends to its shareholders."
Newbuilding Program Update
In April 2014, the Company entered into a memorandum of agreement for the sale of its 4,800 TEU containership to an unrelated third party for a net amount of $41.2 million. The sale of the vessel and its transfer to the new owners is expected to be concluded by the end of May, 2014. In May 2014, the Company also agreed with the shipyard, subject to certain closing conditions, to reduce the contract price of the respective vessel by $770,000. Based on the newbuilding contract, after taking into consideration the latest reduction in the contract price, the total contractual cost of the 4,800 TEU containership newbuilding amounts to $54.2 million, of which an amount of $31.2 million is currently outstanding and payable by the Company upon the delivery of the vessel from the shipyard. The sale of the vessel will result in a positive net cash inflow to the Company of approximately $10.0 million. In addition, the Company has mutually agreed with China Development Bank to cancel the corresponding credit facility for the vessel.
In March 2014, the Company signed shipbuilding contracts for three Kamsarmax newbuilding drybulk carriers. These Eco-Design Kamsarmax newbuildings have a carrying capacity of 81,800 dwt each and will be built at Jiangsu Yangzijiang Shipbuilding Co. Two of the newbuildings are scheduled to be delivered in the second quarter of 2015 and one is scheduled to be delivered in the fourth quarter of 2015. The total consideration for these three newbuilding contracts is $91.7 million.
On January 7, 2014, the Company took delivery of its fourth Handysize drybulk vessel; the M/V Proud Seas. In January 2014, an amount of $21.6 million was paid to the shipyard representing the final installment of the respective vessel, which was financed from the syndicated secured loan facility led by Nordea Bank Finland Plc ("Nordea").
Financing Update
On May 6, 2014, the Company completed the documentation for a senior secured loan facility with a syndicate of major European banks led by Nordea in an amount of $160.0 million, $40.0 million more than the previously announced size. This new, upsized facility will be used for the refinancing of six vessels of its operating fleet (the four Handysize vessels M/V Prosperous Seas, M/V Precious Seas, M/V Priceless Seas and the M/V Proud Seas, and the Panamax vessels M/V Coral Seas and M/V Golden Seas), along with the financing of up to 60% of the market value of the remaining two Ultramax newbuilding drybulk carriers, the Hull numbers DY4050 and DY4052, and of two of its Kamsarmax newbuilding drybulk carriers, the Hull numbers YZJ1144 and YZJ1145, that are all expected to be delivered in the second quarter of 2015.
On April 4, 2014, the Company completed the documentation for the previously announced loan agreement with HSH Nordbank AG for a $47.0 million senior secured loan facility, for the refinancing of the M/V Friendly Seas and the partial financing of the first two Ultramax newbuilding drybulk carriers, the Hull numbers DY152 and DY153.
Both of these new "covenant light" facilities improve our balance sheet by reducing our overall leverage, leaving only one of the recently ordered Kamsarmax newbuildings to be financed. At the same time they increase our financial flexibility by having no dividend restrictions and include no earnings maintenance related covenants going forward.
Share Buyback Program
On May 12, 2014, the Company's Board of Directors authorized a share buyback program of up to $10.0 million for a period of twelve months. The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares.
As of the date of this press release, the Company has not purchased any shares.
First Quarter 2014 Financial Results
Gross charter revenue was $14.2 million for each of the first quarters of 2014 and 2013. The Company reported a net loss of $25.9 million, or $1.24 per basic and diluted share, for the first quarter of 2014, calculated based on a weighted average number of basic and diluted shares outstanding for the period of 20,560,102 and reflecting the impact of the non-cash items discussed below. For the first quarter of 2013, the Company reported net loss of $3.5 million, or $0.32 per basic and diluted share, calculated based on a weighted average number of basic and diluted shares of 10,992,088.
Excluding all non-cash items described below, the adjusted net loss for the first quarter of 2014 was $6.5 million, or $0.31 per basic and diluted share, compared to adjusted net loss of $2.9 million, or $0.26 per basic and diluted share, for the first quarter of 2013.
EBITDA for the first quarter of 2014 was negative $19.1 million, compared to positive $2.6 million for the first quarter of 2013. EBITDA for the first quarter of 2014 was calculated by adding the net loss of $25.9 million to net interest expense, including interest expense from interest rate swaps, and depreciation that in the aggregate amounted to $6.8 million. Adjusted EBITDA, excluding all non-cash items described below, was $0.3 million for the first quarter of 2014, compared to $3.2 million for the first quarter of 2013.
The Company operated an average of 13.9 vessels during the first quarter of 2014, earning an average TCE rate of $8,557 per day, compared to an average of 12.7 vessels during the first quarter of 2013, earning an average TCE rate of $11,388 per day.
Total adjusted operating expenses for the first quarter of 2014 equaled $9.7 million, or approximately $7,717 per vessel per day, which included vessel operating expenses, management fees, general and administrative expenses and dry-docking costs, and excluded share-based compensation for the period of $1.1 million. For the first quarter of 2013, total adjusted operating expenses were $10.2 million, or approximately $8,916 per vessel per day, which included the items mentioned above, and excluded share-based compensation of $0.5 million.
As of March 31, 2014, the Company owned approximately 13.6% of the outstanding common stock of Box Ships Inc. (NYSE:TEU) ("Box Ships"), a former wholly-owned subsidiary of the Company which successfully completed its initial public offering in April 2011. The investment in Box Ships is accounted for under the equity method and is separately reflected on the Company's unaudited condensed consolidated balance sheets. Based on the unaudited financial statements reported by Box Ships on May 12, 2014, for the first quarter of 2014, the Company recorded a loss of $0.3 million, representing its share of Box Ships' net loss for the period, compared to $0.6 million income for the first quarter of 2013.
As of March 31, 2014, based on the increased probability of selling the 4,800 TEU containership newbuilding, the Company recorded a non-cash impairment loss of $15.7 million, relating to the write down to fair value of the contract price of the respective vessel.
As of March 31, 2014, the difference between the fair value and the book value of the Company's investment in Box Ships was considered to be other than temporary and therefore the investment was impaired and the Company recorded a non-cash loss of $2.8 million.
First Quarter 2014 Non-cash Items
The Company's results for the three months ended March 31, 2014 included the following non-cash items:
-- Impairment loss of $15.7 million, or $0.75 per basic and diluted share.
-- Loss on investment in affiliate of $2.8 million, or $0.14 per basic and
diluted share.
-- An unrealized gain on interest rate swaps of $0.2 million, or $0.01 per
basic and diluted share.
-- Non-cash expenses of $1.1 million, or $0.05 per basic and diluted share,
relating to share based compensation to the management company amounting
to $0.9 million and to the amortization of the compensation cost
recognized for non-vested share awards issued to executive officers,
directors and employees amounting to $0.2 million.
In the aggregate, these non-cash items decreased the Company's earnings by $19.4 million, which represents a $0.93 decrease in earnings per basic and diluted share, for the three months ended March 31, 2014.
Cash Flows
For the three months ended March 31, 2014, the Company generated net cash from operating activities of $1.2 million, compared to $0.3 million for the three months ended March 31, 2013. For the three months ended March 31, 2014, net cash used in investing activities was $63.2 million and net cash from financing activities was $61.8 million. For the three months ended March 31, 2013, net cash used in investing activities was $0.6 million and net cash used in financing activities was $3.7 million.
Conference Call and Webcast details
The Company's management team will host a conference call to discuss its first quarter 2014 results on May 20, 2014 at 9:00 am Eastern Time.
Participants should dial into the call ten minutes before the scheduled time using the following numbers 1-877-300-8521 (USA) or +1-412-317-6026 (international) to access the call. A replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA) or +1-858-384-5517 (international) and using passcode 10045612.
Slides and audio webcast
There will also be a simultaneous live webcast through the Company's website, www.paragonship.com. Participants should register on the website approximately ten minutes prior to the start of the webcast. If you would like a copy of the release mailed or faxed, please contact Allen & Caron Investor Relations at 212-691-8087.
About Paragon Shipping Inc.
Paragon Shipping Inc. is an international shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. Paragon Shipping's current fleet consists of fourteen drybulk vessels with a total carrying capacity of 853,699 dwt. In addition, Paragon Shipping's current newbuilding program consists of two Ultramax drybulk carriers that are scheduled to be delivered in 2014, as well as two Ultramax drybulk carriers and three Kamsarmax drybulk carriers that are scheduled to be delivered in 2015. For more information, visit: www.paragonship.com. The information contained on Paragon Shipping's website does not constitute part of this press release.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for drybulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov.
Contacts:
Paragon Shipping Inc.
Robert Perri, CFA
Chief Financial Officer
ir@paragonshipping.gr
Allen & Caron Inc.
Rudy Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
Len Hall (Media)
len@allencaron.com
(949) 474-4300
- Tables Follow -
Fleet List
Drybulk Fleet
The following tables represent our drybulk fleet and the drybulk newbuilding vessels that we have agreed to acquire as of May 19, 2014.
Operating Drybulk Fleet
Name Type /No. of
Vessels Dwt Year Built
---- ------------ --- ----------
Panamax
-------
Dream Seas Panamax 75,151 2009
---------- ------- ------ ----
Coral Seas Panamax 74,477 2006
---------- ------- ------ ----
Golden Seas Panamax 74,475 2006
----------- ------- ------ ----
Pearl Seas Panamax 74,483 2006
---------- ------- ------ ----
Diamond Seas Panamax 74,274 2001
------------ ------- ------ ----
Deep Seas Panamax 72,891 1999
--------- ------- ------ ----
Calm Seas Panamax 74,047 1999
--------- ------- ------ ----
Kind Seas Panamax 72,493 1999
--------- ------- ------ ----
Total Panamax 8 592,291
------------- --- -------
Supramax
--------
Friendly Seas Supramax 58,779 2008
------------- -------- ------ ----
Sapphire Seas Supramax 53,702 2005
------------- -------- ------ ----
Total Supramax 2 112,481
-------------- --- -------
Handysize
---------
Prosperous Seas Handysize 37,293 2012
--------------- --------- ------ ----
Precious Seas Handysize 37,205 2012
------------- --------- ------ ----
Priceless Seas Handysize 37,202 2013
-------------- --------- ------ ----
Proud Seas Handysize 37,227 2014
---------- --------- ------ ----
Total Handysize 4 148,927
--------------- --- -------
Grand Total 14 853,699
----------- --- -------
Drybulk Newbuildings that we have agreed to acquire
Hull no. Type / No. of Vessels Dwt Expected Delivery
-------- --------------------- --- -----------------
Ultramax
--------
Hull no. DY152 Ultramax 63,500 Q2 2014
-------------- -------- ------ -------
Hull no. DY153 Ultramax 63,500 Q3 2014
-------------- -------- ------ -------
Hull no.
DY4050 Ultramax 63,500 Q2 2015
-------- -------- ------ -------
Hull no.
DY4052 Ultramax 63,500 Q2 2015
-------- -------- ------ -------
Total Ultramax 4 254,000
-------------- --- -------
Kamsarmax
---------
Hull no.
YZJ1144 Kamsarmax 81,800 Q2 2015
-------- --------- ------ -------
Hull no.
YZJ1145 Kamsarmax 81,800 Q2 2015
-------- --------- ------ -------
Hull no.
YZJ1142 Kamsarmax 81,800 Q4 2015
-------- --------- ------ -------
Total
Kamsarmax 3 245,400
---------- --- -------
Grand Total 7 499,400
----------- --- -------
Summary Fleet Data
(Expressed in United States Dollars where applicable)
Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
-------------- --------------
FLEET DATA
----------
Average number of vessels
(1) 12.7 13.9
------------------------- ---- ----
Calendar days for fleet (2) 1,142 1,254
--------------------------- ----- -----
Available days for fleet
(3) 1,125 1,211
------------------------ ----- -----
Operating days for fleet
(4) 1,123 1,198
------------------------ ----- -----
Fleet utilization (5) 99.8% 98.9%
-------------------- ---- ----
AVERAGE DAILY RESULTS
---------------------
Time charter equivalent (6) 11,388 8,557
--------------------------- ------ -----
Vessel operating expenses
(7) 4,449 4,262
------------------------- ----- -----
Dry-docking expenses (8) 413 1,178
----------------------- --- -----
Management fees -related
party adjusted (9) 1,016 1,056
------------------------ ----- -----
General and administrative
expenses adjusted (10) 3,038 1,221
-------------------------- ----- -----
Total vessel operating
expenses adjusted (11) 8,916 7,717
----------------------- ----- -----
(1) Average number of vessels is
the number of vessels that
constituted our fleet for the
relevant period, as measured
by the sum of the number of
calendar days each vessel was
a part of our fleet during
the period divided by the
number of days in the period.
(2) Calendar days for the fleet
are the total days the
vessels were in our
possession for the relevant
period.
(3) Available days for the fleet
are the total calendar days
for the relevant period less
any off-hire days associated
with scheduled dry-dockings
or special or intermediate
surveys.
(4) Operating days for the fleet
are the total available days
for the relevant period less
any off-hire days due to any
reason, other than scheduled
dry-dockings or special or
intermediate surveys,
including unforeseen
circumstances. Any idle days
relating to the days a vessel
remains unemployed are
included in operating days.
(5) Fleet utilization is the
percentage of time that our
vessels were able to generate
revenues and is determined by
dividing operating days by
fleet available days for the
relevant period.
(6) Time charter equivalent
("TCE") is a measure of the
average daily revenue
performance of a vessel on a
per voyage basis. Our method
of calculating TCE is
consistent with industry
standards and is determined
by dividing Net Revenue
generated from charters less
voyage expenses by operating
days for the relevant time
period. Voyage expenses
consist of all costs that are
unique to a particular
voyage, primarily including
port expenses, canal dues,
war risk insurances and fuel
costs, net of gains or losses
from the sale of bunkers to
charterers. TCE is a non-
GAAP standard shipping
industry performance measure
used primarily to compare
period-to-period changes in
a shipping company's
performance despite changes
in the mix of charter types
(i.e., spot voyage charters,
time charters and bareboat
charters) under which the
vessels may be employed
between the periods.
(7) Daily vessel operating
expenses, which includes crew
costs, provisions, deck and
engine stores, lubricating
oil, insurance, maintenance
and repairs, is calculated by
dividing vessel operating
expenses by fleet calendar
days for the relevant time
period.
(8) Daily dry-docking expenses
are calculated by dividing
dry-docking expenses by
fleet calendar days for the
relevant time period.
(9) Daily management fees -
related party adjusted are
calculated by dividing
management fees -related
party, excluding share based
compensation to the
management company, by fleet
calendar days for the
relevant time period.
(10) Daily general and
administrative expenses
adjusted are calculated by
dividing general and
administrative expenses,
excluding non-cash expenses
relating to the amortization
of the share based
compensation cost for non-
vested share awards, by fleet
calendar days for the
relevant time period.
(11) Total vessel operating
expenses ("TVOE") is a
measurement of our total
expenses associated with
operating our vessels. TVOE
is the sum of vessel
operating expenses, dry-
docking expenses, management
fees and general and
administrative expenses.
Daily TVOE adjusted is
calculated by dividing TVOE,
excluding non-cash expenses
relating to the amortization
of the share based
compensation cost for non-
vested share awards and share
based compensation to the
management company, by fleet
calendar days for the
relevant time period.
Time Charter Equivalents Reconciliation
(Expressed in thousands of United States Dollars where
applicable, except for TCE)
Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
-------------- --------------
Charter Revenue 14,225 14,237
--------------- ------ ------
Commissions (772) (808)
----------- ---- ----
Voyage Expenses, net (664) (3,178)
-------------------- ---- ------
Net Revenue, net of
voyage expenses 12,789 10,251
------------------- ------ ------
Total operating days 1,123 1,198
-------------------- ----- -----
Time Charter Equivalent 11,388 8,557
----------------------- ------ -----
Condensed Cash Flow Information (Unaudited)
(Expressed in thousands of United States Dollars)
Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
-------------- --------------
Cash and Cash Equivalents,
beginning of period 17,677 31,302
-------------------------- ------ ------
Cash generated from / (used in):
--------------------------------
Operating Activities 261 1,204
-------------------- --- -----
Investing Activities (620) (63,240)
-------------------- ---- -------
Financing Activities (3,721) 61,794
-------------------- ------ ------
Net decrease in Cash and
Cash Equivalents (4,080) (242)
------------------------ ------ ----
Cash and Cash Equivalents,
end of period 13,597 31,060
-------------------------- ------ ------
Reconciliation of U.S. GAAP Financial Information to Non-GAAP
Financial Information
EBITDA and Adjusted EBITDA Reconciliation (1)
(Expressed in thousands of United States Dollars)
Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
-------------- --------------
Net Loss (3,511) (25,885)
-------- ------ -------
Plus Net interest expense,
including interest expense
from interest rate swaps 1,928 2,406
--------------------------- ----- -----
Plus Depreciation 4,134 4,427
----------------- ----- -----
EBITDA 2,551 (19,052)
------ ----- -------
Adjusted EBITDA Reconciliation
------------------------------
Net Loss (3,511) (25,885)
-------- ------ -------
Impairment loss - 15,695
--------------- --- ------
Loss on investment in
affiliate 391 2,754
--------------------- --- -----
Unrealized gain on interest
rate swaps (238) (177)
--------------------------- ---- ----
Non-cash expenses from the
amortization of share based
compensation cost
recognized and share based
compensation to the
management company 478 1,113
---------------------------- --- -----
Adjusted Net Loss (2,880) (6,500)
----------------- ------ ------
Plus Net interest expense,
including interest expense
from swaps 1,928 2,406
--------------------------- ----- -----
Plus Depreciation 4,134 4,427
----------------- ----- -----
Adjusted EBITDA 3,182 333
--------------- ----- ---
(1) The Company considers EBITDA
to represent Net Income /
(Loss) plus net interest
expense, including interest
expense from interest rate
swaps, and depreciation and
amortization. The Company's
management uses EBITDA and
Adjusted EBITDA as a
performance measure. EBITDA
and Adjusted EBITDA are not
items recognized by U.S.
GAAP and should not be
considered as an
alternative to Net Income /
(Loss), Operating Income /
(Loss) or any other
indicator of a Company's
operating performance
required by U.S. GAAP. The
Company's definition of
EBITDA and Adjusted EBITDA
may not be the same as that
used by other companies in
the shipping or other
industries. The Company
believes that EBITDA is
useful to investors because
the shipping industry is
capital intensive and may
involve significant
financing costs. The
Company excluded non-cash
items to derive the
Adjusted Net Income /
(Loss) and the Adjusted
EBITDA because the Company
believes that these
adjustments provide
additional information on
the fleet operational
results.
Reconciliation of U.S. GAAP Financial Information to Non-GAAP
Financial Information
Adjusted Net Income /(Loss) and Adjusted Earnings /(Loss) per
common share Reconciliation
(Expressed in thousands of United States Dollars -except for
shares and share data)
U.S.
GAAP
Financial
Information Quarter Ended Quarter Ended
March 31, 2013 March 31, 2014
--- -------------- --------------
Net Loss (3,511) (25,885)
-------- ------ -------
Net Loss
attributable
to non-
vested
share
awards (46) (446)
------------- --- ----
Net Loss
available
to
common
shareholders (3,465) (25,439)
------------- ------ -------
Weighted
average
number
of
common
shares
basic
and
diluted 10,992,088 20,560,102
-------- ---------- ----------
Loss per
common
share
basic
and
diluted (0.32) (1.24)
-------- ----- -----
Reconciliation of Net Income /(Loss)
to Adjusted Net Income /(Loss)
------------------------------------
Net Loss (3,511) (25,885)
-------- ------ -------
Impairment
loss - 15,695
---------- --- ------
Loss on
investment
in
affiliate 391 2,754
----------- --- -----
Unrealized
gain on
interest
rate
swaps (238) (177)
---------- ---- ----
Non-
cash recognized
expenses and
from share
the based
amortization compensation
of to the
share management
based company
compensation
cost 478 1,113
------------- --- -----
Adjusted
Net Loss
(1) (2,880) (6,500)
--------- ------ ------
Adjusted
Net Loss
attributable
to non-
vested
share
awards (37) (112)
------------- --- ----
Adjusted
Net Loss
available
to
common
shareholders (2,843) (6,388)
------------- ------ ------
Weighted
average
number
of
common
shares
basic
and
diluted 10,992,088 20,560,102
-------- ---------- ----------
Adjusted
Loss per
common
share
basic
and
diluted
(1) (0.26) (0.31)
--------- ----- -----
(1) Adjusted Net Income /
(Loss) and Adjusted
Earnings /(Loss) per
common share are not items
recognized by U.S. GAAP
and should not be
considered as alternatives
to Net Income /(Loss) and
Earnings /(Loss) per
common share,
respectively, or any other
indicator of a Company's
operating performance
required by U.S. GAAP. The
Company excluded non-cash
items to derive at the
Adjusted Net Income /
(Loss) and the Adjusted
Earnings /(Loss) per
common share basic and
diluted because the
Company believes that
these adjustments provide
additional information on
the fleet operational
results. The Company's
definition of Adjusted Net
Income /(Loss) and
Adjusted Earnings /(Loss)
per common share may not
be the same as that used
by other companies in the
shipping or other
industries.
Paragon Shipping Inc.
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2013 and March 31, 2014
(Expressed in thousands of United States Dollars)
------------------------------------------------
December 31, 2013 March 31, 2014
Assets
Cash and restricted cash
(current and non-current) 41,312 42,245
Vessels, net 306,136 327,675
Advances for vessels under
construction 45,209 66,855
Other fixed assets, net 596 547
Investment in affiliate 11,309 8,284
Other assets 14,984 14,843
Total Assets 419,546 460,449
------------ ------- -------
Liabilities and Shareholders'
Equity
Total debt 180,115 201,961
Total other liabilities 6,780 11,050
Total shareholders' equity 232,651 247,438
Total Liabilities and
Shareholders' Equity 419,546 460,449
--------------------- ------- -------
Paragon Shipping Inc.
Unaudited Condensed Consolidated Statements of Comprehensive
Loss
For the three months ended March 31, 2013 and 2014
(Expressed in thousands of United States Dollars -except for
shares and share data)
------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2013 March 31, 2014
Revenue
Charter
revenue 14,225 14,237
Commissions (772) (808)
Net
Revenue 13,453 13,429
-------- ------ ------
Expenses
/
(Income)
Voyage
expenses,
net 664 3,178
Vessels
operating
expenses 5,081 5,345
Dry-
docking
expenses 471 1,477
Management
fees -
related
party 1,496 2,204
Depreciation 4,134 4,427
General
and
administrative
expenses 3,611 1,765
Impairment
loss - 15,695
Bad
debt
provisions 17 -
Other
income - (40)
Operating
Loss (2,021) (20,622)
--------- ------ -------
Other
Income
/
(Expenses)
Interest
and
finance
costs (1,902) (2,210)
Loss on
derivatives,
net (15) (26)
Interest
income 226 7
Equity
in net
income
/
(loss)
of
affiliate 569 (276)
Loss on
investment
in
affiliate (391) (2,754)
Foreign
currency
gain /
(loss) 23 (4)
Total
Other
Expenses,
net (1,490) (5,263)
---------- ------ ------
Net
Loss (3,511) (25,885)
Other
Comprehensive
Income
/
(Loss)
Unrealized
gain /
(loss)
on
cash
flow
hedges 3 (12)
Transfer
of finance
realized costs"
loss
on
cash
flow
hedges
to
"Interest
and 77 76
Equity
in
other
comprehensive
income
of
affiliate 15 5
Unrealized
gain /
(loss)
on
change
in
fair
value
of
marketable
securities 123 (251)
---------- --- ----
Total
Other
Comprehensive
Income
/
(Loss) 218 (182)
Comprehensive
Loss (3,293) (26,067)
Loss
per
Class
A
common
share,
basic
and
diluted ($0.32) ($1.24)
Weighted
average
number
of
Class
A
common
shares,
basic
and
diluted 10,992,088 20,560,102
SOURCE Paragon Shipping Inc.
