Top Ships Inc (TOPS) 2009 Q3 法說會逐字稿

Thank you for standing by ladies and gentlemen, and welcome to the TOP Ships Conference Call on the Third Quarter and Nine Months 2009 Financial Results. We have with us Mr. Evangelos Pistiolis, Chief Executive Officer and President and Alexandros Tsirikos, Chief Financial Officer of the Company.

At this time, all participants are in a listen-only mode and I must advice you that this conference is being recorded today, Tuesday, November 10, 2009.

Before we begin, let me draw your attention to the fact that during the conference call, we might make certain forward-looking statements about the Company's future expectations, including future revenues and earnings. Those statements and other statements -- all other statements here today, other than historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as such, defined in the Private Litigation Reform Act of 1995.

Such forward-looking statements involve risks and uncertainties and are subject to change at any time and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequently occurring events or circumstances.

The audit committee have reviewed and recommended to the Board the acceptance of the accounts for the second quarter and first half 2009 as presented and the Board of Directors has approved the accounts as presented.

We now pass the floor to one of your speakers today, Mr. Pistiolis. Please go ahead and thank you, sir.

Thank you, Jenny. Good morning, ladies and gentlemen.

We are happy to report a profitable quarter despite the current dire market conditions. Our third quarter 2009 financial results include non-recurring charges of $1,386,000 relating to the termination of leases, one-off cash and accelerated stock-based compensation of retiring board members.

Excluding these expenses, net income for the third quarter of 2009 would have been $1,715,000 or $0.06 per share.

During the third quarter of 2009, we achieved average time-charter equivalent rates of $26,777 for the vessels that we operated under time charters and approximately $22,700 for the vessels that we operated under bareboat charters. Given our fixed contracts, we expect similar rates to be achieved during the fourth quarter of 2009.

As of September 30, 2009, we were in breach of our loan covenants and we are currently in discussions with all our banks to receive waivers for these breaches and extend existing waivers that were scheduled to expire in 2010 and 2011.

Now let's pass the call to Alexandros to discuss the financials.

Thank you, Evangelos. Good morning, ladies and gentlemen. For the three quarter of 2009, we reported a net income of $329,000 or $0.01 per share, compared with net income of $41,640,000 or $1.44 per share for the third quarter of 2008.

Third quarter operating income was $6,672,000 for 2009 compared with operating income of $49,127,000 for the corresponding period in 2008. Revenues for the third quarter of 2009 were $25,153,000 compared to $71,094,000 recorded in the third quarter of 2008.

For the nine months ended September 30, 2009, the Company reported a net loss of $14,251,000 or $0.52 per share, compared with a net income of $17,210,000 or $0.69 per share for the nine months ended September 30, 2008.

For the same period in 2009, operating loss was $2,473,000 compared to an operating income of $53,771,000 for the nine months ended September 30, 2008.

Our revenues for the nine months ended September 30, 2009 were $83,582,000 compared to $220,418,000 recorded in the nine months ended September 30, 2008.

Outstanding Indebtedness; as of September 30, 2009, we had total indebtedness under senior secured and unsecured credit facilities with our lenders of $407 million with maturity dates from 2010 through 2019.

Loan covenants and discussions with banks; as mentioned by our CEO, as of September 30, we were in breach of covenants with all of our banks, which have not been previously waived. These breaches relate to EBITDA; our overall cash position, specifically minimum liquidity covenants; adjusted net worth; and the asset value cover of our product tankers with certain banks. We expect that our lenders will not demand payment of our loans before their maturity, provided that we pay loan installments and accumulated or accrued interest as they fall due under the existing credit facilities.

I'd like now to pass it back to Jenny for any questions that there might be. Thank you.

Thank you very much indeed sir. We will now begin the question and answer session. (Operator Instructions). At this point, gentlemen, there appears to be no questions, please continue. (Operator Instructions).

No sir, there are no questions at the moment. May I pass the floor back to you for closing remarks?

Jenny, that completes the Q&A session for the day. Thank you, ladies and gentlemen for participating in this call. We look forward to talking to you again and sharing our continuing progress on our next quarterly conference call. Thank you and have a good day.

Thank you very much indeed to both of our speakers today. That does conclude the conference. Thank you for participating, you may now all disconnect.