Box Ships Inc. , a global shipping company specializing in the seaborne transportation of containers, announced today its results for the quarter ended March 31, 2014.
Results of Operations
Three months ended March 31, 2014 compared to three months ended March 31, 2013.
During the first quarter of 2014, we operated an average of 9 vessels. Our Net Loss and Adjusted Net Income during the first quarter of 2014 was ($1.5) million and $0.3 million, respectively, resulting in basic loss per share of ($0.08) and basic adjusted loss per share of ($0.01). EBITDA and Adjusted EBITDA for the first quarter of 2014 was $4.1 million and $5.9 million, respectively.
During the first quarter of 2013, we operated an average of 9 vessels. Our Net Income and Adjusted Net Income during the first quarter of 2013 was $4.0 million and $6.1 million, respectively, resulting in basic earnings per share of $0.16 and basic adjusted earnings per share of $0.26. EBITDA and Adjusted EBITDA for the first quarter of 2013 was $9.9 million and $11.9 million, respectively.
Net revenues
Net revenues represent charter hire earned, net of commissions. During the first quarter of 2014 and 2013, our vessels operated a total of 753 and 793 days, respectively, out of a total of 810 calendar days in both periods. During the first quarter of 2014, we had a total of 15 unscheduled off-hire days, mainly related to 14 idle days of Box Queen, and 42 scheduled off-hire days related to the dry-dockings of MSC Emma and OOCL China. Currently, all vessels in our fleet are employed under fixed rate time charters, having an average weighted remaining charter duration of 11 months (weighted by aggregate contracted charter hire). The Company reported net revenues for the first quarter of 2014 of $14.2 million, decreased by 19.9% compared to $17.7 million in the first quarter of 2013, mainly due to the re-chartering of the Box Queen in January 2014 at a daily rate of $6,100, which is $21,900 per day less than its previous employment and the off-hire days related to the dry-dockings, discussed above. Our net revenues are also net of the amortization of above/below market time charters, which decreased our revenues and net income for the first quarter of 2014 and 2013 by $0.9 million and $1.3 million, respectively, or $0.04 and $0.06 per common share, respectively. Our average time charter equivalent rate, or TCE rate, for the first quarter of 2014 was $18,184 per vessel per day, which was 14.2% below our average TCE rate of $21,205 per vessel per day during the first quarter of 2013, due to the reasons outlined above. Our adjusted TCE rate was $19,434 per vessel per day in the first quarter of 2014, 14.9% lower than our adjusted TCE of $22,843 for the first quarter of 2013, for the same reasons outlined above. TCE rate is not a recognized measurement under GAAP. Please see the table at the back of this release for a reconciliation of TCE rates to time charter revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Voyage expenses
Voyage expenses for the first quarter of 2014 and 2013 amounted to $0.5 million and $0.9 million, respectively, and mainly relate to war risk insurance costs and bunkers consumed by our vessels travelling to and from the drydocks. Voyage expenses for the first quarter of 2014 include approximately $0.2 million, relating to war risk insurance costs and $0.2 million, relating to bunkers consumed by the MSC Emma and OOCL China travelling to and from the drydocks. Voyage expenses for the first quarter of 2013 include approximately $0.4 million, relating to war risk insurance costs and $0.4 million, relating to other crew costs reimbursable by the charterers.
Vessels operating expenses
Vessels operating expenses comprise crew wages and related costs, insurance and vessel registry costs, repairs and maintenance expenses (excluding dry-docking expenses), the cost of spares and consumable stores, regulatory fees, non-cash amortization of other intangible assets and other miscellaneous expenses. The amortization of other intangible assets for each of the first quarters of 2014 and 2013 amounted to $0.3 million. During the first quarter of 2014, vessels operating expenses including the amortization of other intangible assets amounted to $4.9 million, or $4.6 million on an adjusted basis to exclude the amortization of other intangible assets, compared to $4.6 million, or $4.3 million on an adjusted basis, during the first quarter of 2013, an increase mainly due to claimable expenses of approximately $0.4 million, relating to repairs and other costs incurred in connection with the MSC Emma. On average, our vessels’ operating expenses for the first quarter of 2014 increased to $6,067 per vessel per day, or $5,746 per vessel per day on an adjusted basis, compared to $5,641 per vessel per day, or $5,319 per vessel per day on an adjusted basis, in the first quarter of 2013, on a cash basis after adjusting for non-cash items, for the reason outlined above.
Management fees charged by a related party
Management fees charged by Allseas Marine S.A. (our “Manager” or “Allseas”) for each of the first quarters of 2014 and 2013 were $0.7 million, or $881 (€643.77) per vessel per day, and $840 (€634.88) per vessel per day, respectively. Management fees charged by a related party represent fees for management and technical services in accordance with our management agreements and are adjusted annually in accordance with the official Eurozone inflation rate. This fee is charged on a daily basis per vessel and is affected by the number of vessels in our fleet, the number of calendar days during the period, the official Eurozone inflation rate and the U.S. Dollar/Euro exchange rate at the beginning of each month.
About Box Ships Inc.:
Box Ships Inc. is an Athens, Greece-based international shipping company specializing in the transportation of containers. The Company’s current fleet consists of nine containerships with a total carrying capacity of 43,925 TEU and a TEU weighted average age of 9.3 years. The Company’s common shares and Series C Preferred Shares trade on the New York Stock Exchange under the symbols “TEU” and “TEUPRC”, respectively.
SOURCE Box Ships Inc.
