TOP Ships (US:TOPS)2024-03-29 18:12Financial Performance - Total revenues increased from $80,656,000 in 2022 to $82,949,000 in 2023, representing a growth of 2.8%[339] - Time charter equivalent (TCE) revenues rose from $79,008,000 in 2022 to $81,340,000 in 2023, an increase of 2.9%[339] - Average daily TCE rate improved from $27,310 in 2022 to $27,856 in 2023, reflecting a 2.0% increase[337] - Total operating days for the fleet increased from 2,893 in 2022 to 2,920 in 2023, indicating a growth of 0.9%[337] - Fleet utilization reached 100.00% in 2023, up from 99.72% in 2022, demonstrating improved operational efficiency[337] - EBITDA decreased from $46,554,000 in 2022 to $43,058,000 in 2023, a decline of 7.4%[340] - Net income fell significantly from $18,948,000 in 2022 to $6,066,000 in 2023, a decrease of 68.0%[345] - Operating income decreased by $3.9 million, or 12%, from $32.6 million in 2022 to $28.7 million in 2023[361] - Net income fell by $12.9 million, or 68%, from $18.9 million in 2022 to $6.1 million in 2023[361] Expenses and Costs - Vessel operating expenses slightly decreased from $6,397 per day in 2022 to $6,345 per day in 2023[337] - General and administrative expenses increased from $555,000 in 2022 to $2,293,000 in 2023, a rise of 313.0%[337] - General and administrative expenses surged by $5.1 million, or 314%, from $1.6 million in 2022 to $6.7 million in 2023, primarily due to $5.0 million in bonuses declared in 2023[363] - Interest and finance costs rose by $8.6 million, or 60%, from $14.4 million in 2022 to $23.0 million in 2023[365] Cash Flow and Liquidity - Cash and cash equivalents increased from $24.5 million in 2022 to $40.0 million in 2023[377] - Net cash provided by operating activities decreased by $4.5 million, or 13%, from $33.4 million in 2022 to $28.9 million in 2023[378] - Net cash used in financing activities was $16.0 million in 2023, compared to $127.4 million in 2022[383] - Net cash provided by investing activities in 2023 was $2.5 million, solely from returns on investments in unconsolidated joint ventures[381] - Total adjustments to reconcile net income to net cash provided by operating activities for 2023 amounted to $28.3 million, primarily due to $14.3 million in depreciation expenses[379] - The company expects a slight decrease in operating cash flow for 2024 compared to 2023 due to increased interest costs from loans with fluctuating rates[376] Debt and Financing - As of December 31, 2023, total indebtedness amounted to $246.2 million, with cash and cash equivalents of $40.0 million[372] - The company entered into an HSBC Bridge Loan for a maximum amount of $24.0 million, with a drawdown of $20.0 million for M/T Julius Caesar and $8.0 million for M/T Legio X Equestris[389] - The 3rd AVIC Sale and Leaseback (SLB) agreement was consummated for $41.0 million, with a bareboat charter for ten years at $0.18 million per month and a balloon payment of $19.0 million[390] - The Huarong SLB was completed for $41.0 million, with similar terms to the AVIC SLB, including a ten-year bareboat charter and a balloon payment of $19.0 million[391] - The company purchased M/Ts Julius Caesar and Legio X Equestris for $48.6 million and $49.3 million respectively, followed by New CMBFL SLBs totaling $125.0 million for financing[392] - Net cash used in financing activities for the year ended December 31, 2023 was $16.0 million, which included $76.4 million in principal payments and $26.3 million for Series F Preferred Shares redemptions[383] Market Conditions - The BDTI reached a high of 1,642 and a low of 713 in 2023, indicating high volatility in charter rates[397] - The ongoing war in Ukraine has created uncertainty in the tanker market, affecting ton-mile demand due to changes in cargo sources[398] - Inflation has moderately impacted vessel operating expenses, with expectations of rising insurance costs and crew expenses[401] - The company has not experienced material impacts from supply chain disruptions related to the conflicts in Ukraine and the Middle East, and does not anticipate future material effects[400] Asset Valuation and Impairment - The basic charter-free market values of owned operating vessels are estimated to be approximately 52.8% higher than their carrying value[367] - The company has not identified any impairment indicators for its vessels, as tanker values increased in both 2022 and 2023[411] - In both 2022 and 2023, tanker values increased, resulting in the charter-free market value of each vessel being higher than its carrying amount, indicating no impairment[411] Employment and Compensation - As of December 31, 2023, the company employed 178 sea-going employees, an increase from 170 in 2022[433] - The total compensation for senior management and directors in 2023 was $0.4 million, with a $5.0 million bonus granted to the CEO[422] - The company has no retirement plan for its officers or directors and did not issue stock options as part of compensation for the fiscal year ended December 31, 2023[422] - The Chief Executive Officer is entitled to a cash payment of €10 million in the event of a change of control[424] - The Chief Operating Officer is entitled to receive a cash payment equal to three years' annual base salary in the event of a change of control[425] - The Chief Financial Officer is entitled to receive a cash payment equal to three years' annual base salary in the event of a change of control[427] - The Chief Technical Officer is also entitled to receive a cash payment equal to three years' annual base salary in the event of a change of control[428] - The company has no direct employees, with executive officers and administrative staff provided through agreements with Central Mare[433] Governance - The Board of Directors is composed of two executive directors and three independent non-executive directors, with staggered terms[429]