TOP Ships (TOPS) - 2023 Q2 - Quarterly Report

Financial Performance - Revenues for the six months ended June 30, 2023, increased by $2.3 million, or 6$41.145 million compared to $38.846 million in the same period of 2022[22]. - Operating income rose by$1.142 million, or 8%, to $16.273 million for the six months ended June 30, 2023, compared to$15.131 million in 2022[22]. - Net income decreased by $2.831 million, or 33$5.774 million for the six months ended June 30, 2023, down from $8.605 million in 2022[22]. - EBITDA for the six months ended June 30, 2023, was$23.419 million, an increase of $1.773 million, or 8.2$21.646 million in 2022[31]. - The company’s net (loss)/income attributable to common shareholders for the six months ended June 30, 2023, was $2.3 million, a recovery from a loss of$13.1 million in the same period of 2022[50]. - The Company reported a net income of $5,774,000 for the six months ended June 30, 2023, compared to$8,605,000 for the same period in 2022, reflecting a decrease of approximately 33.5%[96]. - Basic earnings per share for the six months ended June 30, 2023, was $0.13, a recovery from a loss of$6.15 per share in the same period of 2022[96]. Costs and Expenses - Interest and finance costs increased by $3.601 million, or 52$10.528 million for the six months ended June 30, 2023, compared to $6.927 million in 2022[22]. - Vessel depreciation increased by$1.061 million, or 17%, to $7.175 million for the six months ended June 30, 2023, from$6.114 million in 2022[22]. - Interest paid, net of capitalized interest, increased to $8,814,000 in 2023 from$4,414,000 in 2022, reflecting a rise of 99.5%[52]. - The company reported a decrease in dividends of preferred shares to $3,485,000 in 2023 from$6,921,000 in 2022, a reduction of 49.7%[52]. Cash Flow and Working Capital - Net cash used in financing activities for the six months ended June 30, 2023, was $25.3 million, which included$26.3 million in redemptions of preferred shares and $7.8 million in scheduled repayments of long-term debt[44]. - The company expects a decrease in operating cash flow for the remainder of 2023 compared to the same period in 2022 due to increased interest costs from loans with fluctuating rates[39]. - As of June 30, 2023, total current liabilities increased to$57.4 million from $32.2 million as of December 31, 2022, reflecting a significant rise in financial obligations[48]. - The company reported a working capital deficit of$44.5 million, primarily due to the outstanding balance of the Cargill facility maturing in Q1 2024, which includes $21.8 million in current long-term debt[38]. - The company expects to finance its working capital deficit through cash on hand, operational cash flow, and refinancing efforts[67]. - As of June 30, 2023, the company reported a working capital deficit of$44,468 and cash and cash equivalents of $13,629[65]. Debt and Financing - As of June 30, 2023, total indebtedness amounted to$232.8 million, with cash and cash equivalents at $13.6 million, of which$4.0 million is restricted cash[36][38]. - The company has a total long-term debt of $232,811 as of June 30, 2023, down from$240,625 as of December 31, 2022[78]. - The Cargill facility, which matures in the first quarter of 2024, has an outstanding balance of $24,161[78]. - The company has received a termsheet from a major Chinese leasing company for refinancing the Cargill facility, which is expected to alleviate the working capital deficit[33][38]. - The Company is exploring a refinancing option for the Cargill facility through a sale and leaseback agreement, which will not bear any commitment fees[107]. Shareholder Equity - Total stockholders' equity increased to$125,554,000 as of June 30, 2023, up from $88,592,000 as of June 30, 2022, indicating a growth of 41.7$1.35 per unit, raising net proceeds of $12,747,000 after fees[89]. - The Company had a total of 20,346,091 common shares outstanding as of June 30, 2023, an increase from 2,356,041 shares a year earlier[51]. - The Company did not pay any dividends to common stockholders in the six months ended June 30, 2022, and 2023[95]. Operational Developments - The company entered into an agreement to extend time charter parties for vessels M/T Eco West Coast and M/T Eco Malibu for a minimum of 30 months at a daily rate of$32,850[32]. - Future minimum time-charter receipts for the company's vessels are projected to total $276,697 through 2027 and beyond[75]. - The bareboat chartered-in vessels generated revenue of$8,688 for the six months ended June 30, 2023[73]. - The average remaining lease term on chartered-in contracts is 29.2 months[72]. - The company declared dividends of $1,001 and$2,484 for Series E and Series F shares respectively for the six months ended June 30, 2023[71]. - The company was in compliance with all debt covenants as of June 30, 2023[83]. Market and Economic Conditions - The company has not identified any apparent consequences from the ongoing geopolitical tensions affecting its business as of June 30, 2023[61].