Top Ships Inc (TOPS) 2011 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 2011 financial results. We have with us Mr. Alexandros Tsirikos, CFO 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, on the 19th of May, 2011.

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 heard today, other than historical facts, are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities 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 your speaker today, Mr. Tsirikos. Please go ahead, sir.

Thank you. Good morning, ladies and gentlemen. For the first quarter of 2011, the Company reported a net loss of $2.3 million, or $0.07 per share. Our operating income stood at $1.3 million and revenues were $22.4 million. Our CEO, Evangelos Pistiolis commented, our first-quarter results were hit by the drydocking of one of our best revenue-generating vessels, the motor vessel Pepito, and lower-than-expected results from our two product tankers operating in the spot market. Product tanker charter hire rates have shown signs of improvement in the latter part of the first quarter, and up until today, our two spot vessels have been producing better results than the first quarter.

Finally, we have decided that we will effect a reverse stock split and we are currently considering the optimal reverse split ratio.

Loan covenants and discussions with banks. As of March 31, 2011, we were in breach of loan covenants with certain banks. As a result of these covenant breaches and cross-default provisions in our other debt documents, we have again classified all our debt and financial instruments as current.

As of the date of this release, we are in discussions with these banks to amend covenants or receive waivers for these breaches. 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.

Passive foreign investment company status. The Company confirms that it will be treated as a passive foreign investment company status for 2010. As a result, US shareholders of the Company's shares may be subject to adverse US federal income tax consequences upon the disposition of the shares or the receipt of certain distributions from the Company.

These consequences may be ameliorated if a US taxable shareholder makes a timely qualified electing fund, or QEF, election, or a mark-to-market election. We have already posted all necessary information on our website, www.topships.org, to allow US shareholders to make and maintain a QEF election.

It should be noted that as a result of the Company being treated as a PFIC in 2010, any dividends paid by the Company in 2010 or '11 will not be eligible to be treated as a qualified investment dividend income, which is eligible for preferential income tax rate in the hands of noncorporate US shareholders through 2012.

Shareholders are strongly encouraged to consult their tax advisers regarding making a timely QEF election or mark-to-market election and the consequences of the Company being treated as a PFIC in their specific tax situation.

I would now like to pass it back to the operator for any questions.

(Operator Instructions). We have no questions at this time. (Operator Instructions). There are no questions.

Okay. I would like to thank you very much for joining us in this earnings call and you may hang up. Thank you very much.

That does conclude our conference for today. Thank you for participating. You may all disconnect.