Toro, an international energy transportation services company, 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 Ended September 30, | Nine months Ended September 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 | |||||||||||||||
| Voyage expenses (including commissions to related party) | (222,346 | ) | (1,462,097 | ) | (1,299,007 | ) | (1,869,622 | ) | |||||||
| Vessel operating expenses | (2,283,348 | ) | (3,066,655 | ) | (6,839,757 | ) | (6,243,724 | ) | |||||||
| General and administrative expenses (including related party fees) | (3,096,911 | ) | (1,235,585 | ) | (7,795,087 | ) | (3,070,945 | ) | |||||||
| Management fees – related parties | (492,660 | ) | (573,528 | ) | (1,438,150 | ) | (1,183,878 | ) | |||||||
| Depreciation and amortization | (1,272,459 | ) | (1,214,745 | ) | (3,591,785 | ) | (2,195,236 | ) | |||||||
| Provision for doubtful accounts | — | — | (25,369 | ) | — | ||||||||||
| Operating (loss)/income | $ | (2,049,487 | ) | $ | (1,050,119 | ) | $ | (3,823,674 | ) | $ | 444,119 | ||||
| Interest and finance costs, net(1) | 2,343,513 | 903,634 | 6,429,446 | 1,109,074 | |||||||||||
| Other income/(expenses), net(2) | 18,631 | (3,609 | ) | 5,526 | (12,531 | ) | |||||||||
| Dividend income from related party | 638,889 | 381,944 | 1,902,778 | 381,944 | |||||||||||
| Income taxes | 22,497 | (15,434 | ) | — | (38,676 | ) | |||||||||
| Net income and comprehensive income from continuing operations, net of taxes | $ | 974,043 | $ | 216,416 | $ | 4,514,076 | $ | 1,883,930 | |||||||
| Net income and comprehensive income from discontinued operations, net of taxes | $ | 1,306 | $ | 34,852,942 | $ | 19,715,401 | $ | 110,526,415 | |||||||
| Net income and comprehensive income | $ | 975,349 | $ | 35,069,358 | $ | 24,229,477 | $ | 112,410,345 | |||||||
| Dividend on Series A Preferred Shares | (357,778 | ) | (357,778 | ) | (1,065,556 | ) | (808,889 | ) | |||||||
| Deemed dividend on Series A Preferred Shares | (773,739 | ) | (745,637 | ) | (2,283,440 | ) | (1,676,671 | ) | |||||||
| Net (loss)/income attributable to common shareholders | $ | (156,168 | ) | $ | 33,965,943 | $ | 20,880,481 | $ | 109,924,785 | ||||||
| Loss per common share, basic and diluted, continuing operations | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||
| Earnings per common share, basic and diluted, discontinued operations | $ | 0.0001 | $ | 1.94 | $ | 1.14 | $ | 6.82 | |||||||
| (Loss)/Earnings per common share, basic and diluted, total | $ | (0.009 | ) | $ | 1.89 | $ | 1.11 | $ | 6.78 | ||||||
| Weighted average number of common shares outstanding, basic and diluted: | 17,112,114 | 17,961,009 | 17,314,461 | 16,203,797 | |||||||||||
(1) Includes interest and finance costs and interest income, if any.
(2) Includes aggregated amounts for foreign exchange gains/(losses), gain/(loss) on equity securities and other income, as applicable in each period.
TORO CORP.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in U.S. Dollars—except for number of share data)
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 192,116,731 | $ | 151,758,218 | |||
| Due from related parties | 773,088 | 1,018,883 | |||||
| Other current assets | 1,397,337 | 2,688,719 | |||||
| Current assets of discontinued operations | 952,316 | 9,669,748 | |||||
| Total current assets | 195,239,472 | 165,135,568 | |||||
| NON-CURRENT ASSETS: | |||||||
| Vessels, net | 73,847,099 | 77,025,694 | |||||
| Due from related parties | 1,590,501 | 1,590,501 | |||||
| Investment in related party | 50,569,444 | 50,541,667 | |||||
| Other non-currents assets | 4,198,465 | 536,469 | |||||
| Non-current assets of discontinued operations | — | 13,274,231 | |||||
| Total non-current assets | 130,205,509 | 142,968,562 | |||||
| Total assets | 325,444,981 | 308,104,130 | |||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Due to related parties | 330,555 | 315,000 | |||||
| Other current liabilities | 3,184,692 | 2,518,440 | |||||
| Current liabilities of discontinued operations | 1,786,819 | 5,025,584 | |||||
| Total current liabilities | 5,302,066 | 7,859,024 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Non-current liabilities of discontinued operations | — | 3,902,497 | |||||
| Total non-current liabilities | — | 3,902,497 | |||||
| Total liabilities | 5,302,066 | 11,761,521 | |||||
| MEZZANINE EQUITY: | |||||||
| 1.00% Series A fixed rate cumulative perpetual convertible preferred shares: 140,000 shares issued and outstanding as of September 30, 2024, and December 31, 2023, respectively, aggregate liquidation preference of $140,000,000 as of September 30, 2024 and December 31, 2023, respectively. | 121,884,850 | 119,601,410 | |||||
| Total mezzanine equity | 121,884,850 | 119,601,410 | |||||
| SHAREHOLDERS’ EQUITY: | |||||||
| Common shares, $0.001 par value: 3,900,000,000 shares authorized; 19,093,853 and 19,021,758 shares issued; 19,093,853 and 18,978,409 shares (net of treasury shares) outstanding as of September 30, 2024 and December 31, 2023, respectively. | 19,094 | 19,022 | |||||
| Preferred shares, $0.001 par value: 100,000,000 shares authorized; Series B preferred shares: 40,000 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. | 40 | 40 | |||||
| Additional paid-in capital | 57,656,763 | 57,244,290 | |||||
| Treasury shares: 0 and 43,349 shares as of September 30, 2024 and December 31, 2023, respectively. | — | (223,840 | ) | ||||
| Retained Earnings | 140,582,168 | 119,701,687 | |||||
| Total shareholders’ equity | 198,258,065 | 176,741,199 | |||||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 325,444,981 | $ | 308,104,130 | |||
TORO CORP.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
| (Expressed in U.S. Dollars) | Nine months Ended September 30, | ||||||
| 2024 | 2023 | ||||||
| Cash Flows (used in)/provided by Operating Activitiesof continuing operations: | |||||||
| Net income | $ | 24,229,477 | $ | 112,410,345 | |||
| Less: Net income from discontinued operations, net of taxes | (19,715,401 | ) | (110,526,415 | ) | |||
| Net income from continuing operations, net of taxes | 4,514,076 | 1,883,930 | |||||
| Adjustments to reconcile net income fromcontinuing operations to net cash (used in)/provided by Operating activities: | |||||||
| Depreciation and amortization | 3,591,785 | 2,195,236 | |||||
| Provision for doubtful accounts | 25,369 | — | |||||
| Stock based compensation cost | 4,364,393 | 40,190 | |||||
| Unrealized loss on equity securities | 1,440 | — | |||||
| Realized loss on sale of equity securities | 2,369 | — | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable trade, net | 841,401 | (608,478 | ) | ||||
| Inventories | (34,616 | ) | (467,033 | ) | |||
| Due from/to related parties | 137,587 | 503,729 | |||||
| Prepaid expenses and other assets | 741,674 | (446,944 | ) | ||||
| Other deferred charges | – | (4,657 | ) | ||||
| Accounts payable | (555,563 | ) | 2,259,836 | ||||
| Accrued liabilities | 306,364 | 731,554 | |||||
| Deferred revenue | 674,000 | 310,000 | |||||
| Dry-dock costs paid | (1,101,199 | ) | (1,088,387 | ) | |||
| Net Cash provided by Operating Activities from continuing operations | 13,509,080 | 5,308,976 | |||||
| Cash flow (used in)/provided by Investing Activitiesof continuing operations: | |||||||
| Vessel acquisitions and other vessel improvements | (114,607 | ) | (72,149,308 | ) | |||
| Investment in related party | — | (50,000,000 | ) | ||||
| Purchase of equity securities | (3,073,093 | ) | — | ||||
| Proceeds from sale of equity securities | 249,338 | — | |||||
| Net cash used in Investing Activitiesfrom continuing operations | (2,938,362 | ) | (122,149,308 | ) | |||
| Cash flows (used in)/provided by Financing Activities of continuing operations: | |||||||
| Net increase in Former Parent Company Investment | — | 211,982 | |||||
| Issuance of Series B preferred shares | — | 40 | |||||
| Issuance of common shares pursuant to private placement | — | 18,647,236 | |||||
| Payment of Dividend on Series A Preferred Shares | (1,050,000 | ) | (501,667 | ) | |||
| Payment for repurchase of common shares | (3,728,008 | ) | — | ||||
| Payments related to Spin-Off | — | (2,694,646 | ) | ||||
| Net cash (used in)/provided by Financing Activities from continuing operations | (4,778,008 | ) | 15,662,945 | ||||
| Cash flows of discontinued operations: | |||||||
| Net cash provided by Operating Activities from discontinued operations | 3,530,126 | 44,443,955 | |||||
| Net cash provided by Investing Activities from discontinued operations | 32,488,070 | 125,389,588 | |||||
| Net cash used in Financing Activities from discontinued operations | (5,257,200 | ) | (7,656,400 | ) | |||
| Net cash provided by discontinued operations | 30,760,996 | 162,177,143 | |||||
| Net increase in cash, cash equivalents, and restricted cash | 36,553,706 | 60,999,756 | |||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 155,585,401 | 42,479,594 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 192,139,107 | $ | 103,479,350 | |||
APPENDIX B
Non-GAAP Financial Information
Daily Time Charter (“TCE”) Rate. The Daily Time Charter Equivalent Rate (“Daily TCE Rate”), is a measure of the average daily revenue performance of a vessel. The Daily TCE Rate is not a measure of financial performance under U.S. GAAP (i.e., it is a non-GAAP measure) and should not be considered as an alternative to any measure of financial performance presented in accordance with U.S. GAAP. We calculate Daily TCE Rate by dividing total revenues (time charter and/or voyage charter revenues, and/or pool revenues, net of charterers’ commissions), less voyage expenses, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time or other charter, during periods of commercial waiting time or while off-hire during dry-docking or due to other unforeseen circumstances. Under voyage charters, the majority of voyage expenses are generally borne by us whereas for vessels in a pool, such expenses are borne by the pool operator. The Daily TCE Rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance and, management believes that the Daily TCE Rate provides meaningful information to our investors since it compares daily net earnings generated by our vessels irrespective of the mix of charter types (e.g., time charter, voyage charter, pools or other) under which our vessels are employed between the periods while it further assists our management in making decisions regarding the deployment and use of our vessels and in evaluating our financial performance. Our calculation of the Daily TCE Rates may be different from and may not be comparable to that reported by other companies.
The following table reconciles the calculation of the Daily TCE Rate for our Handysize tanker and LPG carrier segments (continuing operations) to Total vessel revenues from continuing operations, the most directly comparable U.S. GAAP financial measure, for the periods presented (amounts in U.S. dollars, except for Available Days):
| Three Months Ended September 30, | Nine months Ended September 30, | ||||||||||||||
| (In U.S. dollars, except for Available Days) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total vessel revenues | $ | 5,318,237 | $ | 6,502,491 | $ | 17,165,481 | $ | 15,007,524 | |||||||
| Voyage expenses including commissions to related party | (222,346 | ) | (1,462,097 | ) | (1,299,007 | ) | (1,869,622 | ) | |||||||
| TCE revenues | $ | 5,095,891 | $ | 5,040,394 | $ | 15,866,474 | $ | 13,137,902 | |||||||
| Available Days | 446 | 500 | 1,330 | 872 | |||||||||||
| Daily TCE Rate | $ | 11,426 | $ | 10,081 | $ | 11,930 | $ | 15,066 | |||||||
EBITDA. EBITDA is not a measure of financial performance under U.S. GAAP, does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. We define EBITDA as earnings before interest and finance costs (if any), net of interest income, taxes (when incurred), depreciation and amortization of deferred dry-docking costs. EBITDA is used as a supplemental financial measure by management and external users of financial statements to assess our operating performance. We believe that EBITDA assists our management by providing useful information that increases the comparability of our operating performance from period to period and against the operating performance of other companies in our industry that provide EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength. EBITDA as presented below may be different from and may not be comparable to similarly titled measures of other companies. The following table reconciles EBITDA to Net Income from continuing operations, the most directly comparable U.S. GAAP financial measure, for the periods presented:
Reconciliation of EBITDA to Net Income
| Three Months Ended September 30, | Nine months Ended September 30, | ||||||||||||||
| (In U.S. dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net Income from continuing operations, net of taxes | $ | 974,043 | $ | 216,416 | $ | 4,514,076 | $ | 1,883,930 | |||||||
| Depreciation and amortization | 1,272,459 | 1,214,745 | 3,591,785 | 2,195,236 | |||||||||||
| Interest and finance costs, net(1) | (2,343,513 | ) | (903,634 | ) | (6,429,446 | ) | (1,109,074 | ) | |||||||
| US source income taxes | (22,497 | ) | 15,434 | — | 38,676 | ||||||||||
| EBITDA | $ | (119,508 | ) | $ | 542,961 | $ | 1,676,415 | $ | 3,008,768 | ||||||
(1) Includes interest and finance costs and interest income, if any.