Top Ships Inc (TOPS) 2010 Q1 法說會逐字稿

Thank you for standing by, ladies and gentlemen, and welcome to the TOP SHIPS conference call on the first-quarter 2010 financial results. We have with us Mr. Evangelos Pistiolis, Chief Executive Officer and President and Mr. Alexandros Tsirikos, Chief Financial Officer of the Company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions). I must advise you that this conference is being recorded today, Friday, May 14, 2010.

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 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 that term is 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. We now pass the floor to one of your speakers today, Mr. Pistiolis.

Thank you. Good morning, ladies and gentlemen. We are happy to report (inaudible) in the first quarter, which is a result of the charters we signed in 2008 and our cost-cutting efforts since then.

In addition, during the first quarter, we fixed the M/T Dauntless on a two-year time charter at the base rate of 10,500 per day plus a 50/50 profit-sharing arrangement with a first-class charter. Following this picture, nearly 100% of our total remaining operating days for 2010 are under fixed employment. Looking further into the future, approximately 83% of total operating days of 2011 and 60% of total operating days of 2012 are under fixed employment. The total gross contracted revenue from all of our fixed-rate contracts amount to $345 million until the end of 2019.

I would now like to pass over the call to Alexandros to discuss the financials.

Thank you, Evangelos. Good morning, ladies and gentlemen. For the first quarter of 2010, we reported a net income of $0.9 million, or $0.03 per share. In the same period, our operating income was $5.5 million and our revenue was $23.1 million.

Outstanding indebtedness. As of March 31, we had total indebtedness under senior secured and unsecured credit facilities with our lenders of $392.7 million, excluding unamortized deferred financing fees of $4.8 million with maturity dates from 2010 through 2019. We are in discussions with DVB Bank America in relation to the bridge loan that we took in 2009 in order to finance the delivery installment of our six new building product tankers due to be paid on July 30, 2010.

As of March 31, 2010, we have had no nonrestricted cash. Loan covenants and discussions with banks. As of March 31, 2010, we were in breach of loan covenants with certain banks not previously waived. As a result of these covenant breaches with all of our banks, we classified all our debt and financial instruments as current.

The amount of long-term debt and financial instruments that have been reclassified and presented together with current liabilities amount to $339.8 million and $9.8 million, respectively. We have been in discussions with all of our banks in relation to these covenant breaches, as well as covenant breaches previously waived for which waiver periods expired as of the end of the first quarter. I would now like to turn it back to the operator for any questions.

(Operator Instructions). Adam Fleck, Morningstar.

Hey, good morning. A question about your new outsourced management contracts. I was wondering if you could provide some details, maybe go into the fixed-rate and what are the rates there and how long and any management fees that are associated with that.

Management fees? What do you mean by that?

Were there any management fees on top of the cost -- I guess I am just curious about the details of the new management contracts.

Oh, okay, yes. I think that the (inaudible) management, correct me if I am wrong, I think the [approved] management agreements will be found in the 20-F, is that correct?

That is correct and we will disclose the things we have agreed, our Board of Directors have agreed, but a final agreement has not yet been signed. So we have reached a base agreement, if you want, with Central Mare. But a final agreement has not yet been signed (multiple speakers).

And to answer your question, the full details, as Alexandros said, are not signed, but you will get them very, very soon. But it is just one more thing that I think we can save some money there. And it is a full arm's length with all the peers and the industry in general. And of course, you will have the opportunity to go through everything I think in the next couple of months or so when we put it into the 20-F, but it will be arm's length like I said.

Okay, fair enough. Continuing along --

And the savings -- sorry to interrupt -- and the savings for the Company would be in the millions from where we are today.

Great. I was going to ask about the operating costs in the quarter. It looks like they kind of picked up from the fourth quarter by about $800,000 or so. Obviously, a lot of this is going to depend on the details of that outsourced management, but I am just curious about what happened there. It looks like the vessel operating costs were more in line with the third quarter versus the fourth quarter. I was wondering if you can kind of speak to that.

I think that, Alexandros, has to do with the dry dock?

No actually, the dry dock is a separate line item. From the point of view -- from the point of -- we have had certain (inaudible). For example, we had the changeover in crewing. We had to pay some termination fees in one (inaudible) agency because we switched over to another agency. And there were some -- one, of course, that had to do with some spares used on our vessels and mainly it was as part of the maintenance of the vessel.

Okay, great. Thanks, guys.

(Operator Instructions). There are no further questions. I would now like to hand the call back.

Okay, thank you, ladies and gentlemen. I think this completes our call.

We can disconnect the calls, yes.

That concludes our conference for today. Thank you for participating. You may now disconnect.