Toro Corp. Reports Net Income of $1.0 Million for the Three Months Ended September 30, 2024 and $24.2 Million for the Nine months Ended September 30, 2024
LIMASSOL, Cyprus, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Toro Corp. (NASDAQ:TORO), ("Toro", or the "Company"), an international energy transportation services company, today announced its results for the three months and the nine months ended September 30, 2024.
Highlights of the Third Quarter Ended September 30, 2024:
Total vessel revenues from continuing operations: $5.3 million, as compared to $6.5 million for the three months ended September 30, 2023, or a 18.5% decrease;
Net income from continuing operations: $1.0 million, as compared to $0.2 million for the three months ended September 30, 2023, or a 400.0% increase;
Net income: $1.0 million, as compared to $35.1 million for the three months ended September 30, 2023, or a 97.2% decrease;
Loss per common share, basic from continuing operations: $(0.01) per share, as compared to $(0.05) per share for the three months ended September 30, 2023;
EBITDA(1) from continuing operations: $(0.1) million, as compared to $0.5 million for the three months ended September 30, 2023; and
Cash and restricted cash of $192.1 million as of September 30, 2024, as compared to $155.6 million as of December 31, 2023.
Highlights of the Nine months Ended September 30, 2024:
Total vessel revenues from continuing operations: $17.2 million, as compared to $15.0 million for the nine months ended September 30, 2023, or a 14.7% increase;
Net income from continuing operations: $4.5 million, as compared to $1.9 million for the nine months ended September 30, 2023, or a 136.8% increase;
Net income: $24.2 million, as compared to $112.4 million for the nine months ended September 30, 2023, or a 78.5% decrease;
Loss per common share, basic from continuing operations: $(0.03) per share, as compared to $(0.04) per share for the nine months ended September 30, 2023;
EBITDA(1) from continuing operations: $1.7 million, as compared to $3.0 million for the nine months ended September 30, 2023;
Delivery of the M/T Wonder Sirius to its new owners on January 24, 2024, after entering into an agreement to sell the vessel on January 8, 2024 for $33.8 million, resulting in a capital gain of $19.6 million; and
Repurchased 644,556 common shares at an aggregate cost of $3.7 million under the Company's share repurchase program, which was approved on November 6, 2023 and expired on March 31, 2024.
(1) EBITDA is not a recognized measure under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Management Commentary:
Mr. Petros Panagiotidis, Chief Executive Officer of the Company, commented:
"During the third quarter of 2024, the markets for LPG carriers remained robust and we enjoyed positive cash flows.
We maintain a strong balance sheet with significant cash reserves and no outstanding debt and as we move forward, we continue to seek opportunities that will further drive our growth and strengthen our position in the market."
Earnings Commentary:
Third quarter ended September 30, 2024, and 2023 Results
Total vessel revenues, net of charterers' commissions, from continuing operations decreased to $5.3 million in the three months ended September 30, 2024, from $6.5 million in the same period in 2023. This decrease of $1.2 million was mainly associated with the decrease in the Available Days of our fleet to 446 days in the three months ended September 30, 2024 from 500 days in the same period in 2023 due to changes in the composition of our fleet. During the three months ended September 30, 2024, our fleet earned on average a Daily TCE Rate of $11,426, compared to an average Daily TCE Rate of $10,081 earned during the same period in 2023. This increase was mainly due to the employment of our LPG fleet in time charters in the three months ended September 30, 2024 with a Daily TCE Rate of $10,091, as compared in the same period in 2023, when our LPG vessels earned a Daily TCE Rate of $4,253 which were employed in voyage charters. Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Voyage expenses from continuing operations for our fleet decreased to $0.2 million in the three months ended September 30, 2024, from $1.5 million in the same period in 2023. This decrease of $1.3 million was mainly associated with decreased bunkers consumption costs of $1.0 million in the three months ended September 30, 2024, as compared to the same period in 2023.
The decrease in Vessel operating expenses from continuing operations by $0.8 million to $2.3 million in the three months ended September 30, 2024, from $3.1 million in the same period in 2023, mainly reflects the decrease (i) in the Daily vessel operating expenses of the vessels in our fleet to $4,964 in the three months ended September 30, 2024 from $6,133 in the same period in 2023, mainly due to the change in the mix of our fleet following the addition of the LPG vessels which incur lower Daily vessel operating expenses than the Handysize tanker vessels due to their size and (ii) in the Ownership Days of our fleet to 460 days in the three months ended September 30, 2024 from 500 days in the same period in 2023 due to the decrease of the average number of operating vessels to 5.0 vessels in the three months ended September 30, 2024 from 5.4 vessels in the same period of 2023.
Depreciation expenses from continuing operations for our fleet amounted to $1.1 million in the three months ended September 30, 2024 and in the same period in 2023. Dry-dock and special survey amortization charges from continuing operations amounted to $0.2 million for the three months ended September 30, 2024, compared to a charge of $0.1 million in the three months ended September 30, 2023. This increase in dry-dock amortization charges is related to the amortization of the M/T Wonder Mimosa, which initiated and completed its scheduled dry-dock and special survey in the second and third quarters of 2024, respectively.
General and administrative expenses from continuing operations in the three months ended September 30, 2024, amounted to $3.1 million, whereas, in the same period of 2023, general and administrative expenses totaled $1.2 million. This increase is mainly associated with the stock based compensation cost for non-vested shares granted under our Equity Incentive Plan amounting to $1.7 million in the three months ended September 30, 2024, as compared to $0.04 million in the same period in 2023.
Management fees from continuing operations decreased to $0.5 million in the three months ended September 30, 2024, from $0.6 million in the same period in 2023 as a result of the decrease in the Ownership Days of our fleet, partly offset by increases in management fees effected from July 1, 2023 and from July 1, 2024, respectively, under the terms of the amended and restated master management agreement between the Company, the Company's shipowning subsidiaries and Castor Ships S.A., effective from July 1, 2022.
Interest and finance costs, net, from continuing operations amounted to $(2.3) million in the three months ended September 30, 2024, whereas, in the same period of 2023, interest and finance costs, net amounted to $(0.9) million. This variation is mainly due to higher cash balances compared to the same period of 2023 and the substantial increase in interest income for the three months ended September 30, 2024 on our available cash that we earned from our time and cash deposits, due to increased interest rates.
Recent Financial Developments Commentary:
Equity update
On October 15, 2024, the Company paid to Castor Maritime Inc. ("Castor") a dividend amounting to $0.3 million on its 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares (the "Series A Preferred Shares") for the period from July 15, 2024 to October 14, 2024.
As of November 11, 2024, we had 19,093,853 common shares issued and outstanding.
Liquidity/ Financing/Cash flow update
Our consolidated cash position (including restricted cash from discontinued operations) increased by $36.5 million, from $155.6 million as of December 31, 2023, to $192.1 million as of September 30, 2024. During the nine months ended September 30, 2024, our cash position increased mainly as a result of (i) $13.5 million of net operating cash flows provided from continuing operations, (ii) $2.9 million of net investing cash flows used from continuing operations, mainly reflecting the purchase of equity securities amounting to $3.1 million, partially offset by $0.2 million of proceeds from sale of equity securities, (iii) $4.8 million of net financing cash flows used from continuing operations, including $3.7 million for the payment for repurchase of common shares and $1.1 million for the payment of dividends to Castor on our Series A Preferred Shares for the period from October 15, 2023 to July 14, 2024 and (iv) $30.7 million of net cash provided from discontinued operations.
Fleet Employment Status (as of November 11, 2024): During the three months ended September 30, 2024, we operated on average 5.0 vessels earning a Daily TCE Rate(1) of $11,426 as compared to an average of 5.4 vessels earning a Daily TCE Rate(1) of $10,081 during the same period in 2023. Our employment profile as of November 11, 2024 is presented immediately below.
(1) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Handysize Tankers
Vessel Name
Type
DWT
Year Built
Country of Construction
Type of Employment
Gross Charter Rate
Estimated Redelivery Date
Earliest
Latest
Wonder Mimosa
Handysize
36,718
2006
Korea
Tanker Pool(1)
N/A
N/A
N/A
LPG Carriers
Type
DWT
Year Built
Country of Construction
Type of Employment
Gross Charter Rate
Estimated Redelivery Date
Earliest
Latest
Dream Terrax
LPG carrier 5,000 cbm
4,743
2020
Japan
Time Charter period(2)
$338,000 per month
Aug-25
Aug-26
Dream Arrax
LPG carrier 5,000 cbm
4,753
2015
Japan
Time Charter period(3)
$323,000 per month
May-25
May-26
Dream Syrax
LPG carrier 5,000 cbm
5,158
2015
Japan
Time Charter period(4)
$323,000 per month
Dec-25
Jan-27
Dream Vermax
LPG carrier 5,000 cbm
5,155
2015
Japan
Time Charter period(5)
$318,000 per month
Mar-25
Mar-26
(1) The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels.(2) The vessel has been fixed under a time charter period contract of twelve months at $338,000 per month plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate between 2.5% and 9% to be mutually agreed between us and the charterers.(3) The vessel has been fixed under a time charter period contract of twelve months at $323,000 per month plus twelve months at $335,000 per month at the charterer's option.(4) The vessel has been fixed under a time charter period contract of twelve months at $323,000 per month. On October 9, 2024, we and the charterers agreed that from May 18, 2025 until January 1, 2026 (plus or minus seven days), the rate will be increased to $337,000 per month, plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate between 2% and 6% to be mutually agreed between us and the charterers.(5) The vessel has been fixed under a time charter period contract of twelve months at $318,000 per month plus twelve months at the charterer's option at a rate to be mutually agreed between us and the charterers.
Financial Results (Continuing Operations) Overview:
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three and nine months ended September 30, 2024 and 2023, respectively:
Three Months Ended
Nine months Ended
(Expressed in U.S. dollars)
September 30, 2024(unaudited)
September 30, 2023(unaudited)
September 30, 2024(unaudited)
September 30, 2023(unaudited)
Total vessel revenues
$
5,318,237
$
6,502,491
$
17,165,481
$
15,007,524
Operating (loss)/ income
$
(2,049,487
)
$
(1,050,119
)
$
(3,823,674
)
$
444,119
Net income and comprehensive income
$
974,043
$
216,416
$
4,514,076
$
1,883,930
EBITDA(1)
$
(119,508
)
$
542,961
$
1,676,415
$
3,008,768
Loss per common share, basic and diluted
$
(0.01
)
$
(0.05
)
$
(0.03
)
$
(0.04
)
(1) EBITDA is not recognized measure under U.S. GAAP. Please refer to Appendix B of this release for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Consolidated Fleet Selected Financial and Operational Data (Continuing Operations):
Set forth below are selected financial and operational data of our Handysize tanker and LPG carrier segments for each of the three and nine months ended September 30, 2024 and 2023, respectively, that we believe are useful in analyzing trends in our results of operations.
Three Months EndedSeptember 30,
Nine months EndedSeptember 30,
(Expressed in U.S. dollars except for operational data)
2024
2023
2024
2023
Ownership Days(1)(7)
460
500
1,370
915
Available Days(2)(7)
446
500
1,330
872
Operating Days(3)(7)
446
453
1,330
825
Daily TCE Rate(4)
$
11,426
$
10,081
$
11,930
$
15,066
Fleet Utilization(5)
100
%
91
%
100
%
95
%
Daily vessel operating expenses(6)
$
4,964
$
6,133
$
4,993
$
6,824
(1) Ownership Days are the total number of calendar days in a period during which we owned a vessel. (2) Available Days are the Ownership Days in a period less the aggregate number of days our vessels are off-hire due to scheduled repairs, dry-dockings or special or intermediate surveys.(3) Operating Days are the Available Days in a period after subtracting unscheduled off-hire and idle days.(4) Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.(5) Fleet Utilization is calculated by dividing the Operating Days during a period by the number of Available Days during that period.(6) Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the Ownership Days for such period.(7) Our definitions of Ownership Days, Available Days, Operating Days, Fleet Utilization may not be comparable to those reported by other companies.
APPENDIX A
TORO CORP.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income
(Expressed in U.S. Dollars—except for number of share data)
(In U.S. dollars except for number of share data)
Three Months Ended September 30,
Nine months Ended September 30,
2024
2023
2024
2023
REVENUES
Time charter revenues
3,877,383
605,850
10,394,268
605,850
Voyage charter revenues
(350
)
2,153,419
1,310,312
2,541,506
Pool revenues
1,441,204
3,743,222
5,460,901
11,860,168
Total vessel revenues
$
5,318,237
$
6,502,491
$
17,165,481
$
15,007,524
EXPENSES
