TOP Ships (TOPS) - 2021 Q4 - Annual Report

Financial Performance - Total revenues for 2021 were $56,367,000, a decrease of 6% compared to $60,222,000 in 2020[309] - Time charter equivalent revenues for 2021 were $55,050, down from $58,228 in 2020[309] - Total charter revenues decreased by $3.9 million, or 6%, from $60.2 million in 2020 to $56.4 million in 2021[324] - Net income improved by $31.4 million, from a net loss of $22.8 million in 2020 to a net income of $8.6 million in 2021[324] Fleet and Operations - Average daily time charter equivalent (TCE) increased to $22,020 in 2021, up 27% from $17,314 in 2020[307] - Fleet utilization for 2021 was 96.93%, down from 97.68% in 2020[307] - Total operating days for the fleet in 2021 were 2,500, a decrease from 3,363 in 2020[309] - The average number of vessels employed decreased from 9.5 in 2020 to 7.1 in 2021, impacting revenues and expenses[325] - Total number of vessels at the end of 2021 was 7, consistent with 2020[307] Expenses - Vessel operating expenses for 2021 were $6,070 per day, slightly up from $6,037 in 2020[307] - General and administrative expenses increased to $752,000 in 2021 from $555,000 in 2020[307] - Operating lease expenses increased significantly by $10.1 million, or 1,336%, due to new operating leases starting in late 2020[326] - Vessel operating expenses decreased by $5.3 million, or 25%, from $21.0 million in 2020 to $15.7 million in 2021[324] Debt and Financing - As of December 31, 2021, total indebtedness was $153.3 million, with cash commitments for fleet acquisition totaling $213.4 million[341] - Net cash provided by financing activities for the period ended December 31, 2021 was $43.6 million, consisting of $74.8 million from long-term debt proceeds, offset by $28.3 million in principal payments and $1.8 million in dividends[351] - Total indebtedness as of December 31, 2021 was $153.3 million, with $81.9 million related to Cargill and AVIC sale and leaseback facilities[547] - The company entered into a new credit facility with ABN Amro for $36.8 million on March 18, 2021, with a repayment structure of 24 quarterly installments[355] Cash Flow - Cash and cash equivalents decreased from $23.3 million in 2020 to $6.4 million in 2021[345] - Net cash provided by operating activities increased by $10.1 million, or 168%, to $16.1 million in 2021[346] Impairments and Charges - Vessels impairment charges increased by $1.2 million, or 100%, due to a write-down of a vessel held for sale[331] - The company recognized an impairment charge of $1.2 million for the M/T Nord Valiant, which was sold for $26.4 million[373] Compliance and Risk - The company was in compliance with all covenants related to bank loans and sale and leaseback agreements as of December 31, 2021[360] - A hypothetical one percentage point increase in the three-month U.S. dollar LIBOR would increase interest rate expense for 2022 by approximately $0.7 million[548] - Approximately 96.5% of the company's expenses were in U.S. dollars, with 3.1% in Euros and 0.4% in other currencies during 2021[549] - A 5% decrease in the exchange rate from $1.1419 to $1.0848 would result in an expense saving of approximately $0.09 million[551] - An inverse 5% change in the exchange rate would lead to an equivalent additional expense of $0.09 million[551] Future Outlook - Future performance is uncertain and depends on charter rates at the expiration of current vessel employments[305]