United Maritime (USEA) - 2022 Q3 - Quarterly Report

Financial Results and Operational Highlights United Maritime reported initial Q3 2022 financial results, outlining strategic fleet transactions and positive Q4 guidance Commencement Period Financial Highlights United Maritime reported initial Q3 2022 financial results, generating $7.9 million net revenues, $2.9 million EBITDA, and a $23,639 daily TCE rate | Metric | Amount (USD) | | :--- | :--- | | Net Revenues | $7.9 million | | EBITDA | $2.9 million | | Net Income | $1.0 million | | Daily TCE Rate | $23,639 | | Cash and cash-equivalents (Sep 30, 2022) | $21.2 million | | Shareholders' equity (Sep 30, 2022) | $44.3 million | | Long-term debt net of deferred charges (Sep 30, 2022) | $76.3 million | CEO Statement and Strategic Overview CEO highlighted successful spin-off, accretive tanker acquisitions, and significant Aframax sales gain, focusing on profitable operations and shareholder returns - Successful spin-off from Seanergy Maritime and Nasdaq trading commencement in July 2022[3] - Completed highly accretive acquisition of two Aframax and two LR2 tankers, with exceptional timing due to subsequent upsurge in tanker spot rates and vessel values[3] - Agreed to sell two Aframax tankers, securing an approximate gain of $19 million (over 50% of purchase price) within two months, expected in Q4 results[5] - Repurchased approximately 3.3 million shares through two buyback programs at an average price of $1.81, reducing shares outstanding by ~24%, and initiated a third $3.0 million buyback program[8] - Decided to redeem 6.5% Series C Preferred Shares to increase net income per share for common shareholders and eliminate dilution risk[8] - Debt consists only of fixed-rate loans, providing protection against rising interest rates, and cash reserves are strong at over $3.00 per share ($4.80 pro forma)[9] Q4 Guidance and Outlook For Q4 2022, approximately 88% of the fleet's expected ownership days are fixed at an estimated TCE of $33,200 per day, including a conversion of an index-linked charter to fixed for the Gloriuship, with a $19 million gain from Aframax sales also expected | Metric | Q4 2022 Guidance | | :--- | :--- | | Fleet ownership days fixed | ~88% | | Estimated TCE rate | ~$33,200 per day | - The $19 million approximate gain from the sale of two Aframax vessels is expected to be recognized in Q4[6] - Time charter agreement for one LR2 tanker at a daily rate of $43,500 for Q1 2023[6] Fleet Overview and Performance This section details the company's current and held-for-sale fleet, along with key operational metrics for the reporting period Current Company Fleet As of the reporting date, the company's current fleet consists of one Capesize dry bulk vessel (Gloriuship) and two LR2 tankers (Minoansea, Epanastasea), with a total capacity of 389,778 DWT and an average age of 15.9 years | Vessel Name | Sector | Capacity (DWT) | Year Built | Employment Type | Minimum T/C Expiration | Maximum T/C Expiration | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gloriuship | Dry Bulk / Capesize | 171,314 | 2004 | T/C Index Linked | Dec-22 | Apr-23 | | Minoansea | Tankers / LR2 | 108,817 | 2008 | Spot | N/A | N/A | | Epanastasea | Tankers / LR2 | 109,647 | 2008 | Fixed Rate T/C | Mar-23 | Apr-23 | | Total/Average age | | 389,778 | 15.9 | | | | - The Epanastasea's daily charter hire is currently $26,500, increasing to $43,500 from December 17, 2022, until expiration[12] Held for Sale Fleet The company held two Aframax tankers (Parosea and Bluesea) for sale, with a total capacity of 227,106 DWT and an average age of 16.6 years, with deliveries expected in November 2022 | Vessel Name | Sector | Capacity (DWT) | Year Built | Yard | | :--- | :--- | :--- | :--- | :--- | | Parosea | Tankers / Aframax | 113,553 | 2006 | Samsung | | Bluesea | Tankers / Aframax | 113,553 | 2006 | Samsung | | Total/Average age | | 227,106 | 16.6 | | - M/T Parosea delivered to new owners on November 8, 2022; M/T Bluesea expected within November 2022[12] Fleet Data and Operational Metrics For the period from July 6 to September 30, 2022, the fleet had 248 ownership days, 244 operating days, and a fleet utilization of 98.4%, with a TCE rate of $23,639 and daily vessel operating expenses of $7,573 | Metric | From July 6, 2022 to September 30, 2022 | | :--- | :--- | | Ownership days | 248 | | Operating days | 244 | | Fleet utilization | 98.4% | | TCE rate | $23,639 | | Daily Vessel Operating Expenses | $7,573 | - TCE rate is a non-GAAP measure, calculated as net revenue less voyage expenses divided by operating days[15] - Fleet utilization is the percentage of time vessels generate revenue, calculated as operating days divided by ownership days[15] Non-GAAP Financial Reconciliations This section provides reconciliations for non-GAAP financial measures, specifically EBITDA and cash interest and finance costs Net Income to EBITDA Reconciliation EBITDA for the period from July 6 to September 30, 2022, was $2,922 thousand, reconciled from net income attributable to common shareholders by adding back interest and finance costs, depreciation and amortization, and dividends on Series C preferred shares | Metric (in thousands of U.S. Dollars) | From July 6, 2022 to September 30, 2022 | | :--- | :--- | | Net income attributable to common shareholders | 889 | | Add: Interest and finance costs, net | 948 | | Add: Depreciation and amortization | 946 | | Add: Dividends on series C preferred shares | 139 | | EBITDA | 2,922 | - EBITDA is a non-GAAP measure used to evaluate operating profitability and should not be considered in isolation from U.S. GAAP measures[17] Interest and Finance Costs Reconciliation Cash interest and finance costs for the period from July 6 to September 30, 2022, were $(820) thousand, derived by adding amortization of deferred finance charges and other discounts to net interest and finance costs | Metric (in thousands of U.S. Dollars) | From July 6, 2022 to September 30, 2022 | | :--- | :--- | | Interest and finance costs, net | (948) | | Add: Amortization of deferred finance charges and other discounts | 128 | | Cash interest and finance costs | (820) | Third Quarter and Recent Developments This section covers recent corporate actions including share buybacks, preferred share redemption, vessel transactions, financing updates, and common shares outstanding Share Buybacks In September and October 2022, the Company completed two share buyback plans, repurchasing approximately 3.3 million common shares for $6.0 million at an average price of $1.81 per share, and authorized an additional $3.0 million buyback program until March 31, 2023 | Metric | Details | | :--- | :--- | | Shares repurchased (Sep-Oct 2022) | ~3.3 million common shares | | Average repurchase price | $1.