Orion Group Holdings, Inc. Reports Fourth Quarter and Full Year 2021 Results

Research, News, and Market Data on Orion Group Holdings

 

HOUSTON–(BUSINESS WIRE)–Mar. 2, 2022– 
Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported a net loss of 
$8.8 million (
$0.29 diluted loss per share) for the fourth quarter ended 
December 31, 2021. Fourth quarter highlights are discussed below. For full year results please refer to the financial statements starting on page 7.

Fourth Quarter 2021 Highlights

• Operating loss was 
  $8.2 million for the fourth quarter of 2021 compared to operating income of 
  $5.1 million for the fourth quarter of 2020.

• Net loss was 
  $8.8 million (
  $0.29 diluted loss per share) for the fourth quarter of 2021 compared to net income of 
  $3.7 million (
  $0.12 diluted earnings per share) for the fourth quarter of 2020.

• The fourth quarter 2021 net loss included 
  $1.9 million (
  $0.06 loss per diluted share) of non-recurring items and 
  $1.6 million (
  $0.06 loss per diluted share) of tax expense associated with the movement of certain valuation allowances. Fourth quarter 2021 adjusted net loss was 
  $5.3 million (
  $0.17 diluted loss per share). (Please see page 9 of this release for a reconciliation of adjusted net income).

• EBITDA, adjusted to exclude the impact of the aforementioned non-recurring items, was 0.8 million in the fourth quarter of 2021, which compares to adjusted EBITDA of 
  $12.6 million for the fourth quarter of 2020. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure).

• Backlog at the end of the fourth quarter was 
  $590.0 million on a fourth quarter book-to-bill of 1.11x.

“Our fourth quarter reflects the lag effects from the COVID-19 pandemic, which reduced the volume of work in our marine business and pressured project margins in our concrete business,” stated  Mark Stauffer, Orion’s Chief Executive Officer. “Additionally, the Omicron variant of the COVID-19 virus impacted our operations during the latter part of the quarter.

Marine segment revenues began recovering during the quarter but were still down significantly year over year. Concrete project margins, primarily in our 
Houston market, remained under pressure as we emerge from the pandemic.”

Mr. Stauffer continued, “That said, we ended the year with backlog up sequentially and up significantly year over year. Fueled by recent awards, the amount of work we won during 2021 was up 27% over the prior year, allowing us to enter 2022 with confidence that revenues will grow, leading to better capacity utilization, overhead absorption, and improved results. We closed the fourth quarter with year-ending backlog of 
$590.0 million, up 34% from the end of 2020. Within that backlog figure, approximately 75% is due to burn in FY’22. Overall bidding activity remains robust, with the amount of quoted work outstanding at year end up 63% year over year. The recently passed 
Infrastructure Investment and Jobs Act will provide a long-term tailwind, both directly in the form of funds earmarked for work in our markets, and indirectly as market capacity utilization increases as it is deployed on projects funded through the Act.

We’ve worked through a period with significant challenges to the economy and our business. During this period our team has been focused and disciplined on responsibly bidding and executing work. We are well positioned to take advantage of the improving market dynamics and tailwinds in our market drivers.”

Consolidated Results for Fourth Quarter 2021 Compared to Fourth Quarter 2020

• Contract revenues were 
  $162.3 million, down 4.6% as compared to 
  $170.2 million. The decrease was primarily driven by the timing and mix of several large marine projects that had driven activity in the prior year, which were not replicated or replaced in the current year quarter. This decrease was partially offset by increased production volumes in our concrete segment due to an increase in activity during 2021, including on several larger jobs in the current year period as compared to the prior year period.

• Gross profit was 
  $6.6 million, as compared to 
  $21.7 million. Gross profit margin was 4.1%, as compared to 12.8%. The decrease in gross profit dollars and percentage was primarily driven by the decreased activity and volumes in the marine segment which negatively impacted revenue and contributed to an under recovery of indirect costs primarily related to decreased labor and equipment utilization. Decreased project performance in the concrete segment was driven by inefficiencies in executing work from pressured bid margins and COVID-19 related impacts.

• Selling, General, and Administrative expenses were 
  $16.1 million, as compared to 
  $17.4 million. As a percentage of total contract revenues, SG&A expenses decreased from 10.2% to 9.9%. The decrease in SG&A dollars was driven primarily by a decrease in bonus expense as compared to the prior year period.

• Operating loss was 
  $8.2 million as compared to operating income of 
  $5.1 million in the prior year period.

• EBITDA was 
  $(1.9) million, representing a (1.1)% EBITDA margin, as compared to EBITDA of 
  $11.7 million, or a 6.9% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the fourth quarter of 2021 was 
  $0.8 million, representing a 0.5% EBITDA margin. (Please see page 10 of this release for an explanation of EBITDA, Adjusted EBITDA and a reconciliation to the nearest GAAP measure).

Backlog

Backlog of work under contract as of 
December 31, 2021, was 
$590.0 million, which compares with backlog under contract as of 
December 31, 2020, of 
$439.5 million. The fourth quarter 2021 ending backlog was comprised of 
$376.9 million for the marine segment, and 
$213.1 million for the concrete segment. At the end of the fourth quarter 2021, the Company had approximately 
$2.6 billion worth of bids outstanding, including approximately 
$138 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the fourth quarter of 2021, of which approximately 
$24 million pertains to the marine segment and approximately 
$114 million to the concrete segment.

“During the fourth quarter, we bid on approximately 
$1.6 billion of work and were successful on approximately 
$180 million of these bids,” continued  Mr. Stauffer. “This resulted in a 1.11 times book-to-bill ratio and a win rate of 11.0%. In the marine segment, we bid on approximately 
$807 million during the fourth quarter 2021 and were successful on approximately 
$70 million, representing a win rate of 8.7% and a book-to-bill ratio of 0.96 times. In the concrete segment we bid on approximately 
$825 million of work and were awarded approximately 
$110 million, representing a win rate of 13.3% and a book-to-bill ratio of 1.23 times.”

Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress but are not yet complete. The Company cannot guarantee that the revenue implied by its backlog will be realized, or, if realized, will result in earnings. Backlog can fluctuate from period to period due to the timing and execution of contracts. Given the typical duration of the Company’s projects, which generally range from three to nine months, the Company’s backlog at any point in time usually represents only a portion of the revenue it expects to realize during a twelve-month period.

Credit Facility

Subsequent to the end of the quarter, the Company amended its Credit Agreement effective for the quarter ending 
December 31, 2021. The goal of this amendment was to provide the Company with a waiver and greater flexibility as it provides for suspension of the leverage ratio and fixed charge coverage ratio for the quarter ending 
December 31, 2021, before reverting back to a leverage ratio not to exceed 3.0 times beginning in the third quarter of 2022, and reverting back to a fixed charge coverage ratio of a minimum of 1.25 times beginning the fourth quarter of 2022. Additionally, the amendment reduces the revolver to 
$42.5 million and provides for paydowns on the revolver by the amount of any cash balances exceeding 
$10 million until delivery of the third quarter 2022 compliance certificate. Capacity created by any such paydowns remains available to the Company. The amendment includes minimum EBITDA requirements for the first and second quarters of 2022. The new fees associated with the amendment are approximately 
$0.4 million and will be amortized over the remaining term of the facility. The Company is pleased with the continued support from its lenders and looks forward to maintaining its excellent relationship with its bank group.

Conference Call Details

Orion Group Holdings will host a conference call to discuss results for the fourth quarter 2021 at 
10:00 a.m. Eastern Time/
9:00 a.m. Central Time on 
Thursday, March 3, 2022. To listen to a live webcast of the conference call, or access the replay, visit the Calendar of Events page of the Investor Relations section of the website at www.oriongroupholdingsinc.com. To participate in the call, please dial (201) 493-6739 and ask for the Orion Group Holdings Conference Call.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental 
United States, 
Alaska, 
Canada and the 
Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in 
Houston, Texas with regional offices throughout its operating areas.

Non-GAAP Financial Measures

This press release includes the financial measures “adjusted net income,” “adjusted earnings per share,” “EBITDA,” “Adjusted EBITDA” and “Adjusted EBITDA margin.” These measurements are “non-GAAP financial measures” under rules of the 
Securities and Exchange Commission, including Regulation G. The non-GAAP financial information may be determined or calculated differently by other companies. By reporting such non-GAAP financial information, the Company does not intend to give such information greater prominence than comparable GAAP financial information. Investors are urged to consider these non-GAAP measures in addition to and not in substitute for measures prepared in accordance with GAAP.

Adjusted net income and adjusted earnings per share are not an alternative to net income or earnings per share. Adjusted net income and adjusted earnings per share exclude certain items that management believes impairs a meaningful comparison of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because management uses adjusted net income available to common stockholders to evaluate the company’s operational trends and performance relative to other companies. Generally, items excluded, are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

Orion Group Holdings defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that management believes impairs a meaningful comparison of operating results. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for the period by contract revenues for the period. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA margin is operating margin, which represents operating income divided by contract revenues. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are used internally to evaluate current operating expense, operating efficiency, and operating profitability on a variable cost basis, by excluding the depreciation and amortization expenses, primarily related to capital expenditures and acquisitions, and net interest and tax expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information regarding the Company’s ability to meet future debt service and working capital requirements while providing an overall evaluation of the Company’s financial condition. In addition, EBITDA is used internally for incentive compensation purposes. The Company includes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to provide transparency to investors as they are commonly used by investors and others in assessing performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have certain limitations as analytical tools and should not be used as a substitute for operating margin, net income, cash flows, or other data prepared in accordance with generally accepted accounting principles in 
the United States, or as a measure of the Company’s profitability or liquidity.

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘seeks’, ‘approximately’, ‘intends’, ‘plans’, ‘estimates’, or ‘anticipates’, or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start date, anticipated revenues, and contract options which may or may not be awarded in the future. Forward looking statements involve risks, including those associated with the Company’s fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, the effects of the ongoing COVID-19 pandemic, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company’s plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.

Please refer to the Company’s Annual Report on Form 10-K, filed on 
March 2, 2021, which is available on its website at www.oriongroupholdingsinc.com or at the 
SEC’s website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Operations (In Thousands, Except Share and Per Share Information) (Unaudited)
		Three months ended								Twelve months ended
		December 31,								December 31,
		2021				2020				2021				2020
Contract revenues			162,269				170,176				601,360				709,942
Costs of contract revenues			155,636				148,476				560,393				625,239
Gross profit			6,633				21,700				40,967				84,703
Selling, general and administrative expenses			16,103				17,440				60,181				65,091
Amortization of intangible assets			380				518				1,521				2,070
Gain on disposal of assets, net			(1,655	)			(1,310	)			(11,418	)			(9,044	)
Operating (loss) income			(8,195	)			5,052				(9,317	)			26,586
Other (expense) income:
Other income			40				96				199				347
Interest income			63				32				136				183
Interest expense			(570	)			(1,198	)			(5,076	)			(4,920	)
Other expense, net			(467	)			(1,070	)			(4,741	)			(4,390	)
(Loss) income before income taxes			(8,662	)			3,982				(14,058	)			22,196
Income tax expense			161				316				502				1,976
Net (loss) income		$	(8,823	)		$	3,666			$	(14,560	)		$	20,220
Basic (loss) earnings per share		$	(0.29	)		$	0.12			$	(0.47	)		$	0.67
Diluted (loss) earnings per share		$	(0.29	)		$	0.12			$	(0.47	)		$	0.67
Shares used to compute (loss) income per share:
Basic			30,930,000				30,426,454				30,763,527				30,122,362
Diluted			30,930,000				30,427,940				30,763,527				30,122,362

Orion Group Holdings, Inc. and Subsidiaries Selected Results of Operations (In Thousands, Except Share and Per Share Information) (Unaudited)
		Three months ended December 31,
		2021							2020
		Amount				Percent			Amount				Percent
		(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector		$	42,720			58.5		%	$	58,669			60.1		%
Private sector			30,368			41.5		%		38,955			39.9		%
Marine segment total		$	73,088			100.0		%	$	97,624			100.0		%
Concrete segment
Public sector		$	1,365			1.5		%	$	4,995			6.9		%
Private sector			87,816			98.5		%		67,557			93.1		%
Concrete segment total		$	89,181			100.0		%	$	72,552			100.0		%
Total		$	162,269						$	170,176
Operating (loss) income
Marine segment		$	(729	)		(1.0	)	%	$	8,231			8.4		%
Concrete segment			(7,466	)		(8.4	)	%		(3,179	)		(4.4	)	%
Total		$	(8,195	)					$	5,052
		Twelve months ended December 31,
		2021							2020
		Amount				Percent			Amount				Percent
		(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector		$	164,636			62.4		%	$	240,353			61.9		%
Private sector			99,279			37.6		%		147,820			38.1		%
Marine segment total		$	263,915			100.0		%	$	388,173			100.0		%
Concrete segment
Public sector		$	14,945			4.4		%	$	41,853			13.0		%
Private sector			322,500			95.6		%		279,916			87.0		%
Concrete segment total		$	337,445			100.0		%	$	321,769			100.0		%
Total		$	601,360						$	709,942
Operating income (loss)
Marine segment		$	5,760			2.2		%	$	29,815			7.7		%
Concrete segment			(15,077	)		(4.5	)	%		(3,229	)		(1.0	)	%
Total		$	(9,317	)					$	26,586

Orion Group Holdings, Inc. and Subsidiaries Reconciliation of Adjusted Net Income (Loss) (In thousands except per share information) (Unaudited)
		Three months ended								Twelve months ended
		December 31,								December 31,
		2021				2020				2021				2020
Net (loss) income		$	(8,823	)		$	3,666			$	(14,560	)		$	20,220
One-time charges and the tax effects:
ERP implementation			2,103				692				4,925				1,488
ISG initiative			—				—				—				369
Severance			96				55				96				175
Costs related to debt extinguishment			—				—				2,062				—
Insurance recovery on disposal, net			—				—				—				(2,859	)
Recovery on disputed receivable			—				—				—				(898	)
Net loss (gain) on  Tampa property sale			234				—				(6,435	)			—
Tax rate of 23% applied to one-time charges (1)			(560	)			(172	)			(149	)			397
Total one-time charges and the tax effects			1,873				575				499				(1,328	)
Federal and state tax valuation allowances			1,635				(722	)			3,294				(4,584	)
Adjusted net income		$	(5,315	)		$	3,519			$	(10,767	)		$	14,308
Adjusted EPS		$	(0.17	)		$	0.12			$	(0.35	)		$	0.47

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(1)

Items are taxed discretely using the Company’s blended tax rate.

Orion Group Holdings, Inc. and Subsidiaries Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (In Thousands, Except Margin Data) (Unaudited)
		Three months ended							Year ended
		December 31,							December 31,
		2021				2020			2021				2020
Net (loss) income		$	(8,823	)		$	3,666		$	(14,560	)		$	20,220
Income tax expense			161				316			502				1,976
Interest expense, net			507				1,166			4,940				4,737
Depreciation and amortization			6,290				6,555			25,430				27,217
EBITDA (1)			(1,865	)			11,703			16,312				54,150
Stock-based compensation			247				111			2,401				1,998
ERP implementation			2,103				692			4,925				1,488
ISG initiative			—				—			—				369
Severance			96				55			96				175
Insurance recovery on disposal, net			—				—			—				(2,859	)
Recovery on disputed receivable			—				—			—				(898	)
Net loss (gain) on  Tampa property sale			234				—			(6,435	)			—
Adjusted EBITDA (2)		$	815			$	12,561		$	17,299			$	54,423
Operating income margin			(5.1	)	%		3.0	%		(1.4	)	%		3.8		%
Impact of depreciation and amortization			3.9		%		3.9	%		4.2		%		3.8		%
Impact of stock-based compensation			0.2		%		0.1	%		0.4		%		0.3		%
Impact of ERP implementation			1.3		%		0.4	%		0.8		%		0.2		%
Impact of ISG initiative			—		%		—	%		—		%		0.1		%
Impact of severance			0.1		%		—	%		—		%		—		%
Impact of insurance recovery on disposal, net			—		%		—	%		—		%		(0.4	)	%
Impact of recovery on disputed receivable			—		%		—	%		—		%		(0.1	)	%
Impact of net loss (gain) on  Tampa property sale			0.1		%		—	%		(1.1	)	%		—		%
Adjusted EBITDA margin (2)			0.5		%		7.4	%		2.9		%		7.7		%

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(1)		EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.
(2)		Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for stock-based compensation, ERP implementation, the ISG initiative, severance, insurance recovery on disposal, net, recovery on a disputed receivable and the net loss (gain) on the  Tampa property sale. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

Orion Group Holdings, Inc. and Subsidiaries Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment (In Thousands, Except Margin Data) (Unaudited)
		Marine								Concrete
		Three months ended								Three months ended
		December 31,								December 31,
		2021				2020				2021				2020
Operating (loss) income (1)			(729	)			8,231				(7,466	)			(3,179	)
Other income (expense), net			40				98				—				(1	)
Depreciation and amortization			4,375				4,306				1,915				2,248
EBITDA (2)			3,686				12,635				(5,551	)			(932	)
Stock-based compensation			227				74				20				37
ERP implementation			935				378				1,168				314
Severance			80				55				16				—
Net loss on  Tampa property sale			234				—				—				—
Adjusted EBITDA (3)		$	5,162			$	13,142			$	(4,347	)		$	(581	)
Operating income margin			(1.0	)	%		8.4		%		(8.3	)	%		(4.4	)	%
Impact of other income (expense), net			0.1		%		0.1		%		—		%		—		%
Impact of depreciation and amortization			6.0		%		4.4		%		2.1		%		3.1		%
Impact of stock-based compensation			0.3		%		0.1		%		—		%		0.1		%
Impact of ERP implementation			1.3		%		0.4		%		1.3		%		0.4		%
Impact of severance			0.1		%		0.1		%		—		%		—		%
Impact of net loss on  Tampa property sale			0.3		%		—		%		—		%		—		%
Adjusted EBITDA margin (3)			7.1		%		13.5		%		(4.9	)	%		(0.8	)	%
		Marine								Concrete
		Year ended								Year ended
		December 31,								December 31,
		2021				2020				2021				2020
Operating income (loss) (1)			5,760				29,815				(15,077	)			(3,229	)
Other income (expense), net			199				346				—				2
Depreciation and amortization			17,287				18,369				8,143				8,847
EBITDA (2)			23,246				48,530				(6,934	)			5,620
Stock-based compensation			2,306				1,841				95				157
ERP implementation			2,161				795				2,764				693
ISG initiative			—				190				—				179
Severance			80				81				16				94
Insurance recovery on disposal, net			—				(2,859	)			—				—
Recovery on disputed receivable			—				(898	)			—				—
Net gain on  Tampa property sale			(6,435	)			—				—				—
Adjusted EBITDA (3)		$	21,358			$	47,680			$	(4,059	)		$	6,743
Operating income margin			2.2		%		7.7		%		(4.5	)	%		(1.0	)	%
Impact of other income (expense), net			—		%		0.1		%		—		%		—		%
Impact of depreciation and amortization			6.6		%		4.7		%		2.4		%		2.7		%
Impact of stock-based compensation			0.9		%		0.5		%		0.1		%		0.1		%
Impact of ERP implementation			0.8		%		0.2		%		0.8		%		0.2		%
Impact of ISG initiative			—		%		—		%		—		%		0.1		%
Impact of severance			—		%		—		%		—		%		—		%
Impact of insurance recovery on disposal, net			—		%		(0.7	)	%		—		%		—		%
Impact of recovery on disputed receivable			—		%		(0.2	)	%		—		%		—		%
Impact of net gain on  Tampa property sale			(2.4	)	%		—		%		—		%		—		%
Adjusted EBITDA margin (3)			8.1		%		12.3		%		(1.2	)	%		2.1		%

---

(1)		In connection with the preparation of the financial statements for the quarter ended  December 31, 2021, the Company has identified and corrected certain immaterial errors in segment reporting for all periods presented. Specifically, certain corporate overhead costs previously recorded to the marine segment as part of operating income (loss) and allocated from the marine segment to the concrete segment below operating income in the other income (expense) line have been allocated from the marine segment to the concrete segment as part of the determination of operating income for each segment.
(2)		EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.
(3)		Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for stock-based compensation, ERP implementation, the ISG initiative, severance, insurance recovery on disposal, net, recovery on a disputed receivable and the net loss (gain) on the  Tampa property sale. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Cash Flows Summarized (In Thousands) (Unaudited)
		Three months ended								Year ended
		December 31,								December 31,
		2021				2020				2021				2020
Net (loss) income		$	(8,823	)		$	3,666			$	(14,560	)		$	20,220
Adjustments to remove non-cash and non-operating items			5,988				7,005				22,726				26,338
Cash flow from net income after adjusting for non-cash and non-operating items			(2,835	)			10,671				8,166				46,558
Change in operating assets and liabilities (working capital)			(1,336	)			(3,015	)			(8,097	)			(526	)
Cash flows (used in) provided by operating activities		$	(4,171	)		$	7,656			$	69			$	46,032
Cash flows (used in) provided by investing activities		$	(3,860	)		$	(932	)		$	10,629			$	(3,129	)
Cash flows provided by (used in) financing activities		$	19,431			$	(7,867	)		$	6			$	(42,400	)
Capital expenditures (included in investing activities above)		$	(5,381	)		$	(5,250	)		$	(16,975	)		$	(14,694	)

Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Cash Flows (In Thousands) (Unaudited)
		Year ended December 31,
		2021				2020
Cash flows from operating activities
Net (loss) income		$	(14,560	)		$	20,220
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization			22,608				23,893
Amortization of ROU operating leases			5,102				5,874
Amortization of ROU finance leases			2,822				3,324
Write-off of debt issuance costs upon debt modification			790				—
Amortization of deferred debt issuance costs			430				763
Deferred income taxes			(9	)			17
Stock-based compensation			2,401				1,998
Gain on disposal of assets, net			(11,418	)			(6,185	)
Gain on involuntary disposition of assets, net			—				(2,859	)
Allowance for credit losses			—				(487	)
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable			4,703				23,587
Income tax receivable			14				543
Inventory			371				148
Prepaid expenses and other			143				(1,070	)
Contract assets			3,742				9,118
Accounts payable			589				(22,015	)
Accrued liabilities			(6,544	)			11,092
Operating lease liabilities			(4,940	)			(5,399	)
Income tax payable			(38	)			(884	)
Contract liabilities			(6,137	)			(15,646	)
Net cash provided by operating activities			69				46,032
Cash flows from investing activities:
Proceeds from sale of property and equipment			27,164				5,944
Purchase of property and equipment			(16,975	)			(14,694	)
Contributions to CSV life insurance			—				(99	)
Insurance claim proceeds related to property and equipment			440				5,720
Net cash provided by (used in) investing activities			10,629				(3,129	)
Cash flows from financing activities:
Borrowings from Credit Facility			53,000				10,000
Payments made on borrowings from Credit Facility			(49,120	)			(48,204	)
Loan costs from Credit Facility			—				(389	)
Payments of finance lease liabilities			(3,035	)			(3,619	)
Purchase of vested stock-based awards			(949	)			(188	)
Exercise of stock options			110				—
Net cash provided by (used in) financing activities			6				(42,400	)
Net change in cash, cash equivalents and restricted cash			10,704				503
Cash, cash equivalents and restricted cash at beginning of period			1,589				1,086
Cash, cash equivalents and restricted cash at end of period		$	12,293			$	1,589

Orion Group Holdings, Inc. and Subsidiaries Condensed Balance Sheets (In Thousands, Except Share and Per Share Information)
		December 31,				December 31,
		2021				2020
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	12,293				1,589
Accounts receivable:
Trade, net of allowance for credit losses of  $323 and  $411, respectively			88,173				96,369
Retainage			41,379				36,485
Income taxes receivable			405				419
Other current			17,585				59,492
Inventory			1,428				1,548
Contract assets			28,529				32,271
Prepaid expenses and other			8,142				7,229
Total current assets			197,934				235,402
Property and equipment, net of depreciation			106,654				125,497
Operating lease right-of-use assets, net of amortization			14,686				18,874
Financing lease right-of-use assets, net of amortization			14,561				12,858
Inventory, non-current			5,418				6,455
Intangible assets, net of amortization			8,556				10,077
Deferred income tax asset			41				70
Other non-current			3,900				4,956
Total assets		$	351,750			$	414,189
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt, net of issuance costs		$	39,141			$	4,344
Accounts payable:
Trade			48,217				48,252
Retainage			923				716
Accrued liabilities			38,594				84,637
Income taxes payable			601				639
Contract liabilities			26,998				33,135
Current portion of operating lease liabilities			3,857				4,989
Current portion of financing lease liabilities			3,406				3,901
Total current liabilities			161,737				180,613
Long-term debt, net of debt issuance costs			259				29,523
Operating lease liabilities			11,637				14,537
Financing lease liabilities			10,908				8,376
Other long-term liabilities			18,942				19,837
Deferred income tax liability			169				207
Interest rate swap liability			—				1,602
Total liabilities			203,652				254,695
Stockholders’ equity:
Preferred stock —  $0.01 par value, 10,000,000 authorized, none issued			—				—
Common stock —  $0.01 par value, 50,000,000 authorized, 31,712,457 and 31,171,804 issued; 31,001,226 and 30,460,573 outstanding at  December 31, 2021 and  December 31, 2020, respectively			317				312
Treasury stock, 711,231 shares, at cost, as of  December 31, 2021 and  December 31, 2020, respectively			(6,540	)			(6,540	)
Accumulated other comprehensive loss			—				(1,602	)
Additional paid-in capital			185,881				184,324
Retained loss			(31,560	)			(17,000	)
Total stockholders’ equity			148,098				159,494
Total liabilities and stockholders’ equity		$	351,750			$	414,189

 

Orion Group Holdings Inc.
Francis Okoniewski, VP Investor Relations
(346) 616-4138
www.oriongroupholdingsinc.com

-OR-

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.
Jeremy Hellman, CFA (804) 595-2083

Source: 
Orion Group Holdings, Inc.

Seanergy Maritime Sets Date for the Fourth Quarter and Twelve Months Ended December 31, 2021 Financial Results, Conference Call and Webcast

Research, News, and Market Data on Seanergy Maritime

 

Earnings Release: Thursday, March 10^th, 2022, Before Market Open in New York
Webcast: Thursday, March 10^th, 2022, at 11:30 a.m. Eastern Time

GLYFADA, Greece, March 03, 2022 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) announced today that it will release its financial results for the fourth quarter and twelve months ended December 31^st, 2021 before the market opens in New York on Thursday, March 10^th, 2022. The same day, Thursday, March 10^th, 2022, at 11:30 a.m. Eastern Time, the Company’s management will host a conference call to present the financial results.

Audio Webcast and Earnings Presentation:

There will also be a live, and then archived, webcast of the conference call and accompanying earnings presentation available through the Company’s website. To access the earnings presentation and listen to the archived audio file, visit our website, following Webcast & Earnings Presentation. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast, following this link.

Conference Call Details:
Participants have the option to dial into the call 10 minutes before the scheduled time using the following numbers: +1 (877) 870 9135 (US Toll Free Dial In), +44 (0) 800 2796619 (UK Toll Free Dial In) or +44 (0) 2071 928338 (Standard International Dial In). Confirmation Code: 9389462.

A telephonic replay of the conference call will be available until March 17^th, 2022, by dialing 1 (866) 331- 1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333009785 (Standard International Dial In). Confirmation Code: 9389462.

About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

Seanergy Announces New Refinancing Facility of $21.3 million with a Prominent Japanese Lender

Research, News, and Market Data on Seanergy Maritime

 

GLYFADA, Greece, March 02, 2022 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) reported today that it has entered into a definitive agreement with a reputable Japanese lender to refinance the loan facilities secured by the 2012-built Capesize M/V Partnership (the “Vessel”) through a sale and leaseback structure.

Pursuant to the terms of the new facility, the Vessel will be sold and chartered back on a bareboat basis for an eight-year period starting at the time of the closing, which is anticipated promptly, within March 2022.

The financing amount is $21.3 million and the applicable interest rate is SOFR + 2.90% per annum. The new interest rate is approximately 210 bps lower as compared to the blended rate of the existing senior and junior loan facilities secured currently by the Vessel. Moreover, $4.3 million of additional liquidity will be released to the Company through the refinancing.

The facility will amortize through quarterly instalments averaging at approximately $590,000. Following the second anniversary of the bareboat charter, the Company has continuous options to repurchase the Vessel. At the end of the 8-year bareboat period, Seanergy has an option to repurchase the Vessel for $2.39 million, which the Company expects to exercise.

Following the consummation of the refinancing, the Company will have no further junior debt outstanding.

Fearnley Securities AS have acted as the Company’s exclusive financial advisor for this financing offering valuable support in the origination, structuring and execution of the transaction.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“I am pleased to announce another successful refinancing for our Company, consistent with our commitment to optimize the capital structure and further reduce our financing expense. The transaction marks an important milestone for our Company, since, following consummation, there will be no legacy junior debt outstanding.

“The transaction has another strategic element for Seanergy, as we have initiated a valuable relationship with a prominent lender in the Japanese market. In the last 12 months, we have strengthened our footing in the Asian ship-financing market through similar transactions in China, Taiwan and Japan.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

Seanergy Announces New Refinancing Facility of $21.3 million with a Prominent Japanese Lender

Research, News, and Market Data on Seanergy Maritime

 

GLYFADA, Greece, March 02, 2022 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) reported today that it has entered into a definitive agreement with a reputable Japanese lender to refinance the loan facilities secured by the 2012-built Capesize M/V Partnership (the “Vessel”) through a sale and leaseback structure.

Pursuant to the terms of the new facility, the Vessel will be sold and chartered back on a bareboat basis for an eight-year period starting at the time of the closing, which is anticipated promptly, within March 2022.

The financing amount is $21.3 million and the applicable interest rate is SOFR + 2.90% per annum. The new interest rate is approximately 210 bps lower as compared to the blended rate of the existing senior and junior loan facilities secured currently by the Vessel. Moreover, $4.3 million of additional liquidity will be released to the Company through the refinancing.

The facility will amortize through quarterly instalments averaging at approximately $590,000. Following the second anniversary of the bareboat charter, the Company has continuous options to repurchase the Vessel. At the end of the 8-year bareboat period, Seanergy has an option to repurchase the Vessel for $2.39 million, which the Company expects to exercise.

Following the consummation of the refinancing, the Company will have no further junior debt outstanding.

Fearnley Securities AS have acted as the Company’s exclusive financial advisor for this financing offering valuable support in the origination, structuring and execution of the transaction.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“I am pleased to announce another successful refinancing for our Company, consistent with our commitment to optimize the capital structure and further reduce our financing expense. The transaction marks an important milestone for our Company, since, following consummation, there will be no legacy junior debt outstanding.

“The transaction has another strategic element for Seanergy, as we have initiated a valuable relationship with a prominent lender in the Japanese market. In the last 12 months, we have strengthened our footing in the Asian ship-financing market through similar transactions in China, Taiwan and Japan.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

Friday, February 25, 2022

Genco Shipping (GNK)
Results Slightly Short of Estimates But Positive Outlook Intact

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Robust 4Q2021 Results and Dividend Slightly Short of Estimates Due to Higher Costs. Reported EBITDA of $102.3 million was short of our EBITDA estimate of $109.2 million due to lower TCE rates and higher operating expenses. TCE rates of $35.2k/day were $800 below our estimate of $36.0k/day. Based on total ownership days and versus our estimates, operating costs of $5,766k/day were $666 higher and G&A expenses of $1,755/day were $417 higher. As a result, the 4Q2021 dividend of $0.67/share was below our estimate of $0.80/share.


Fine tuning 2022 EBITDA and dividend estimates.  Forward cover of 87% of 4Q2021 days booked at ~$24.2k/day creates a solid base and the quarter should be solid even though the BCI and BSI weakened over the past quarter before rebounding ahead of Chinese New Year. Our 2022 EBITDA estimate increases to $261.5 million from $249.4 million based on TCE rates of $24.5k/day, but our 2022 dividend estimate …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, February 24, 2022

Euroseas (ESEA)
Another Positive Data Point

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Time charter on Aegean Express feeder ahead of expectations. Consistent with comments from the recent earnings call, a 36-39 month time charter on the 1,439 TEU Aegean Express Feeder was secured at at an average TCE rate of $41.0k/day. The time charter should generate total revenue of $47.0 million and EBITDA of $36.0 million over the first 36 months, or EBITDA of close to $1.0 million per month beginning in early April.


Forward 2022 cover of close to 100% at average TCE rates of $31.0k/day creates high visibility.  Recent fixtures pushed 2022 forward cover to almost 100%, and there is only one remaining opportunity this year to move TCE rates closer to market rates. Forward cover represents a solid base for our 2022 EBITDA estimate of $123.6 million, or well above our adjusted 2021 EBITDA of $56.8 million …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Genco Shipping & Trading Limited Announces Fourth Quarter Financial Results

Research, News, and Market Data on Genco Shipping & Trading

 

Value Strategy Implemented; Declares Dividend of $0.67 per share for Fourth Quarter 2021

Reports Highest Quarterly Earnings Per Share Since 2008

NEW YORK, Feb. 24, 2022 (GLOBE NEWSWIRE) — Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months and twelve months ended December 31, 2021.

The following financial review discusses the results for the three months and twelve months ended December 31, 2021 and December 31, 2020.

Fourth Quarter 2021 and Year-to-Date Highlights

• Implemented its comprehensive value strategy, reducing its cash flow breakeven rate, paving the way for compelling dividends
• Declared a $0.67 per share dividend for the fourth quarter of 2021, marking the first dividend under Genco’s comprehensive value strategy
  • Represents a ~350% increase from the last quarter’s dividend and the Company’s tenth consecutive quarterly payout
  • Payable on or about March 17, 2022 to all shareholders of record as of March 10, 2022
  • Q4 2021 dividend represents an annualized yield of 14% on Genco’s closing share price as of February 23, 2022
  • We have now declared cumulative dividends totaling $1.725 per share over the last ten quarters, or approximately 9% of the Genco’s closing share price as of February 23, 2022
• Took delivery of the Genco Mary and the Genco Laddey, two high quality, fuel-efficient Ultramax vessels built in 2022 at Dalian Cosco KHI Ship Engineering Co. Ltd. (DACKS)
  • These two deliveries complete the acquisitions of six Ultramax vessels Genco agreed to acquire from April to July 2021
• Repaid $203.2 million of debt during 2021, or 45% of the beginning year debt balance, meeting our year-end target of $246 million of debt outstanding, representing a net loan-to-value of 16%¹
• Recorded net income of $90.9 million for the fourth quarter of 2021
  • Basic and diluted earnings per share of $2.16 and $2.13, respectively
  • Adjusted net income¹ of $85.0 million or basic and diluted earnings per share of $2.02 and $1.99, respectively, which excludes a $5.8 million gain on sale of vessels
  • Represents our highest quarterly earnings per share result since 2008
• Voyage revenues totaled $183.3 million and net revenue² (voyage revenues minus voyage expenses and charter hire expenses) totaled $132.7 million during Q4 2021
  • Our average daily fleet-wide time charter equivalent, or TCE², for Q4 2021 was $35,200, marking our highest quarterly TCE since 2008
  • For 2021, our average daily fleet-wide TCE² was $24,402, representing our highest annual TCE since 2010
  • We estimate our TCE to date for Q1 2022 to be $24,215 for 87% of our owned fleet available days, based on both period and current spot fixtures
• Recorded Adjusted EBITDA of $102.2 million during Q4 2021, which is greater than our Adjusted EBITDA for all of 2020²
  • Genco’s 2021 Adjusted EBITDA was $252.9 million, greater than 2019 and 2020 combined and double the 2018 level
• Maintained a strong liquidity position with $120.5 million of cash as of December 31, 2021, after $203.2 million of debt repayments as well as $108.7 million paid for vessels acquired in the year
• Transitioned the technical management of nearly all of our vessels to our joint venture with the Synergy Group, GS Shipmanagement, with remaining vessels expected to transition in Q1 2022
  

John C. Wobensmith, Chief Executive Officer, commented, “2021 proved to be truly transformational for Genco, as we implemented our comprehensive value strategy, creating a unique drybulk vehicle with an attractive risk-reward profile for the benefit of shareholders. Following the announcement of this strategy in April 2021, we spent the balance of the year executing on the blueprint we laid out, focused on growth and financial deleveraging, to position Genco to pay meaningful and sustainable dividends throughout the drybulk cycle. Consistent with our disciplined capital allocation approach, we paid down $203 million of debt in 2021, or 45% of our beginning of the year balance, while taking steps to grow the fleet through the acquisition of six high quality, fuel efficient Ultramax vessels. The combination of these important efforts resulted in a substantial reduction of our cash flow breakeven rate, which we believe will benefit Genco in both the short and long term and enhance our dividend paying ability.”

Mr. Wobensmith, continued, “We are pleased to conclude 2021 with our best quarter in well over a decade, culminating in more than $100 million of EBITDA and a $0.67 per share dividend for the fourth quarter, representing our first dividend under our value strategy. Looking ahead to the first quarter of 2022, we have the majority of our available days booked at over $24,200 per day. This includes earnings generated through our opportunistic container fixtures, which have been generating premium rates above the typical drybulk backhaul route, while further insulating the Company from the softer January rate environment and providing premium positions upon redelivery. Going forward, despite a near-term seasonal decline in freight rates in early 2022, we continue to have a positive outlook on the drybulk market due to the favorable supply and demand balance underpinned by the historically low newbuilding orderbook. Genco remains well positioned to capitalize on these favorable market dynamics utilizing its best-in-class commercial operating platform together with its barbell approach to fleet composition which creates exposure to all drybulk commodities and upside potential. 2021 was a momentous year for the Company, across the board, and we look forward to continue to build on our success in 2022 and beyond.”

¹ Based on estimates from VesselsValue.com and pro forma for delivery of our two Ultramax vessels delivered in January 2022.
² We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Please see Summary Consolidated Financial and Other Data below for a further reconciliation.

Comprehensive Value Strategy Implementation in 2021

Genco’s comprehensive value strategy is centered on three key pillars:

• Paying sizeable quarterly cash dividends to shareholders
• Low financial leverage, and
• Opportunistically growing the Company’s asset base
  

We believe this strategy is a key differentiator for the Company and will drive shareholder value over the long-term creating a compelling risk-reward balance.

Drawing on one of the strongest balance sheets in the industry, Genco utilized a phased in approach to further reduce its debt, grow its fleet and refinance its credit facilities in order to lower its cash flow breakeven levels positioning the Company to pay a sizeable quarterly dividend across diverse market environments. At the same time, we also maintain significant flexibility to grow the fleet through accretive vessel acquisitions. The fourth quarter of 2021 marks the first dividend under the Company’s new corporate strategy and will be payable in March 2022.

Since announcement in April 2021, Genco has implemented this strategy through the following measures:

• Deleveraging: paid down $203.2 million of debt during 2021, or approximately 45% of our beginning of the year debt balance
• Refinancing: closed on a new global credit facility to increase flexibility, improve key terms and lower cash flow breakeven rates
• Revolver: our $450 million credit facility has a substantial revolver in place with $184.8 million of availability as of December 31, 2021
• Growth: acquired six modern, fuel efficient Ultramaxes
• Securing revenue: opportunistically fixed various period time charterers to secure cash flows and de-risk recent acquisitions as shown in the following table:

Our debt outstanding as of December 31, 2021 was $246 million following voluntary debt repayments totaling $59 million in the fourth quarter of 2021. Importantly, following these repayments, we have no mandatory debt amortization payments until 2026. Regardless of this favorable mandatory amortization schedule, we plan to continue to voluntarily pay down our debt with the medium-term objective of reducing our net debt to zero and a longer-term goal of zero debt. Specifically, as previously announced, Genco paid down an additional $8.75 million of debt during the first quarter of 2022.

Dividend policy

For the fourth quarter of 2021, Genco declared a cash dividend of $0.67 per share. This represents a ~350% increase from the $0.15 per share paid during the previous quarter and marks the first quarterly dividend under our new comprehensive value strategy.

As part of Genco’s value strategy, the Board of Directors adopted a new quarterly dividend policy for dividends payable commencing in the first quarter of 2022 in respect to the Company’s financial results for the fourth quarter of 2021.  Under the new quarterly dividend policy, the amount available for quarterly dividends is to be calculated based on the following formula, which includes the Q4 2021 dividend calculation and estimated amounts for calculation of the dividend for the first quarter of 2022: 

For purposes of the foregoing calculation, operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses and charter hire expenses), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management fees, and interest expense other than non-cash deferred financing costs).  During the fourth quarter of 2021, we paid down $59.00 million of debt on a voluntary basis. Drydocking, ballast water treatment system and energy saving device costs related to three vessels that drydocked during the fourth quarter. Furthermore, our reserve for Q4 2021 was $10.75 million as previously announced in advance. Anticipated uses for the reserve include, but are not limited to, vessel acquisitions, debt repayments, and general corporate purposes. In order to set aside funds for these purposes, we plan to set the reserve on a quarterly basis for the subsequent quarter and is anticipated to be based on future quarterly debt repayments and interest expense. The quarterly reserve for the first quarter of 2022 is expected to be $10.75 million. The reserve was determined based on $8.75 million for voluntary debt repayments anticipated to be made in Q2 2022 as well as estimated cash interest expense on our debt and remains subject to our Board of Directors’ discretion. The quarterly debt repayment and reserve will be reassessed on a quarterly basis in advance by the Board of Directors and management. Estimated expenses, debt repayments, and capital expenditures for Q1 2022 are estimates presented for illustrative purposes. The amounts shown will vary based on actual results. Maintaining a quarterly reserve as well as optionality for the uses of the reserve are important factors of our corporate strategy that are intended to allow Genco to retain liquidity to take advantage of a variety of market conditions.

The Board expects to reassess the payment of dividends as appropriate from time to time. The quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with law and contractual obligations and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facilities) and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.

Genco’s active commercial operating platform and fleet deployment strategy

Overall, we utilize a portfolio approach towards revenue generation through a combination of short-term, spot market employment as well as opportunistically booking longer term coverage. Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet. Our barbell approach towards fleet composition enables Genco to gain exposure to both the major and minor bulk commodities with a fleet whose cargoes carried align with global commodity trade flows. This approach continues to serve us well given the upside potential in major bulk rates together with the relative stability of minor bulk rates.

Based on current fixtures to date, our estimated TCE to date for the first quarter of 2022 on a load-to-discharge basis is presented below. Our estimated Q1 TCE based on current fixtures, while lower than Q4 2021, highlights our proactive approach of booking coverage ahead of the seasonally softer first quarter market. In 2021, we selectively booked period time charter coverage for approximately one to two years on four Capesize and four Ultramax vessels. We view these fixtures as part of our portfolio approach to fixture activity and prudent to take advantage of in the firm freight rate environment.

Given our eight vessels fixed on one to two year period time charters, we have provided a TCE breakout of the period time charters as well as the spot trading fixtures in the first quarter to date. Actual rates for the first quarter will vary based upon future fixtures.

Fleet Update

The Company took delivery of the remaining two 2022-built, high specification, fuel efficient Ultramax vessels it agreed to acquire in May 2021, namely the Genco Mary and the Genco Laddey. Both of these vessels were delivered to Genco on January 6, 2022.

As for vessel divestitures, we completed the sale of the Genco Provence on November 2, 2021, for gross proceeds of $13.25 million. With this sale, we have now divested the oldest vessel in our fleet and in the process have avoided drydocking capex costs scheduled for 2022 of approximately $0.8 million.

Financial Review: 2021 Fourth Quarter

The Company recorded net income for the fourth quarter of 2021 of $90.9 million, or $2.16 and $2.13 basic and diluted earnings per share, respectively. Comparatively, for the three months ended December 31, 2020, the Company recorded a net loss of $65.9 million, or $1.57 basic and diluted net loss per share.

The Company’s revenues increased to $183.3 million for the three months ended December 31, 2021, as compared to $95.5 million recorded for the three months ended December 31, 2020, primarily due to higher rates achieved by both our major and minor bulk vessels, as well as our third-party time chartered-in vessels. The average daily time charter equivalent, or TCE, rates obtained by the Company’s fleet was $35,200 per day for the three months ended December 31, 2021 as compared to $13,167 per day for the three months ended December 31, 2020. During the fourth quarter of 2021, the drybulk market remained firm as Capesize rates reached a peak of $86,953 on October 7, 2021. While freight rates retreated from these high levels, the earnings environment remained robust for the quarter led by strong global commodity demand together with low net fleet growth and continued fleet-wide inefficiencies. During the first quarter of 2022, the drybulk freight market seasonally declined primarily due to weather related issues in Brazil limiting cargo availability, the timing of newbuilding vessel deliveries as well as the timing of the Lunar New Year and the Beijing Olympics.

Voyage expenses were $36.6 million for the three months ended December 31, 2021 compared to $33.4 million during the prior year period. This increase was primarily due to higher bunker expenses, partially offset by the operation of fewer vessels. Vessel operating expenses increased to $22.5 million for the three months ended December 31, 2021 from $21.1 million for the three months ended December 31, 2020, due to higher crew expenses as a result of COVID-19 related expenses and disruptions. General and administrative expenses increased to $6.8 million for the fourth quarter of 2021 compared to $4.9 million for the fourth quarter of 2020, primarily due to higher personnel related expenses as well as higher legal and professional fees. Depreciation and amortization expenses decreased to $14.8 million for the three months ended December 31, 2021 from $15.5 million for the three months ended December 31, 2020, primarily due to a decrease in depreciation for certain vessels in our fleet that were impaired during 2020.

Daily vessel operating expenses, or DVOE, amounted to $5,766 per vessel per day for the fourth quarter of 2021 compared to $4,726 per vessel per day for the fourth quarter of 2020. This increase is primarily attributable to higher crew expenses as a result of COVID-19 related expenses and disruptions, which amounted to $770 per vessel per day, as well as higher lubricant-related expenses. COVID related expenses were higher than anticipated during the quarter as a result of a global escalation of cases and the timing of our crew changes. We believe daily vessel operating expenses are best measured for comparative purposes over a 12 month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers, our DVOE budget for the first quarter of 2022 is $5,825 per vessel per day on a fleet-wide basis including an estimate for COVID-19 related expenses. The potential impacts of COVID-19 are beyond our control and are difficult to predict due to uncertainties surrounding the pandemic.

Apostolos Zafolias, Chief Financial Officer, commented, “During 2021, our unrelenting focus was on improving the strength of our balance sheet, taking steps to further reduce our leverage and breakeven levels and enhancing our earnings power and dividend potential. We are pleased to have achieved important objectives for the year, underpinning our value strategy, as highlighted by our closing of a new, attractive $450 million credit facility, our $203 million reduction of debt and our opportunistic vessel purchases. We enter the year with a cash flow breakeven among the lowest in the industry and significant financial flexibility including a sizeable cash position. Maintaining balance sheet strength while optimizing the risk-reward balance for our shareholders remains a priority for Genco as we continue to execute our value strategy.”

Financial Review: Twelve Months 2021

The Company recorded net income of $182.0 million or $4.33 and $4.27 basic and diluted net earnings per share for the twelve months ended December 31, 2021, respectively. This compares to a net loss of $225.6 million or $5.38 basic and diluted net loss per share for the twelve months ended December 31, 2020. Net income for the twelve months ended December 31, 2021 includes a $4.9 million gain on sale of vessels as well as a $4.4 million loss on debt extinguishment. Net loss for the twelve months ended December 31, 2020 includes $208.9 million in non-cash vessel impairment charges and a $1.9 million loss on sale of vessels. Revenues increased to $547.1 million for the twelve months ended December 31, 2021 compared to $355.6 million for the twelve months ended December 31, 2020, primarily due to higher rates achieved by our fleet as well as our third-party time chartered-on vessels, which was partially offset by the operation of fewer vessels in our fleet. Voyage expenses decreased to $146.2 million for the twelve months ended December 31, 2021 from $157.0 million for the same period in 2020. TCE rates obtained by the Company increased to $24,402 per day for the twelve months ended December 31, 2021 from $10,221 per day for the twelve months ended December 31, 2020. Total operating expenses for the twelve months ended December 31, 2021 and 2020 were $346.0 million and $558.9 million, respectively. General and administrative expenses for the twelve months ended December 31, 2021 increased to $24.5 million as compared to $21.3 million in the same period of 2020, primarily due to higher personnel related expenses, as well as higher legal and professional fees. DVOE was $5,409 in 2021 versus $4,612 in 2020. The increase in daily vessel operating expense was predominantly due to higher crew expenses as a result of COVID-19 related expenses and disruptions. EBITDA for the twelve months ended December 31, 2021 amounted to $253.4 million compared to $(139.0) million during the prior period. During the twelve months of 2021 and 2020, EBITDA included non-cash impairment charges, gains and losses on sale of vessels as well as a loss on debt extinguishment as mentioned above. Excluding these items, our adjusted EBITDA would have amounted to $252.9 million and $71.8 million, for the respective periods.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities for the years ended December 31, 2021 and 2020 was $231.1 million and $36.9 million, respectively.  This increase in cash provided by operating activities was primarily due to higher rates achieved by our major and minor bulk vessels, changes in working capital, as well as a decrease in drydocking related expenditures and interest expense.

Net cash used in investing activities during the year ended December 31, 2021 was $67.6 million as compared to $37.4 million net cash provided by investing activities during the year ended December 31, 2020.  This fluctuation was primarily due to the purchase of four Ultramax vessels which delivered during the third quarter of 2021, as well as deposits made for the two Ultramax vessels that were delivered during January 2022. Additionally, there was a decrease in the net proceeds from the sale of vessels.  These fluctuations were partially offset by a decrease in scrubber related expenses and purchase of other fixed assets during 2021 as compared to 2020.

Net cash used in financing activities during the years ended December 31, 2021 and 2020 was $222.7 million and $56.9 million, respectively.  The increase was primarily due to the refinancing of the $495 Million Credit Facility and the $133 Million Credit Facility with the $450 Million Credit Facility on August 31, 2021. During 2021, the increase in total net cash used in financing activities related to our credit facilities was $156.6 million as compared to 2020. Additionally, there was a $5.6 million increase in deferred financing costs paid in relation to the $450 Million Credit Facility during 2021. Lastly, there was a $3.6 million increase in the payment of dividends during 2021 as compared to 2020.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. As of February 24, 2022, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,635,000 dwt and an average age of 10.0 years.

In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions. We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for 2022 to be:

(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.

(2) Estimated costs associated with the installation of ballast water treatment systems is expected to be funded with cash on hand.

(3) Estimated costs associated with the installation of fuel efficiency upgrades are expected to be funded with cash on hand.

(4) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q1 2022 consists of 36 days for one Capesize, 42 days for three Ultramaxes and 21 days for one Supramax. Estimated offhire days for 2022 relate to 15 vessels drydocking during the year.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below.

1) EBITDA represents net income (loss) attributable to Genco Shipping & Trading Limited plus net interest expense, taxes, and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in consolidating internal financial statements and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing. EBITDA presents investors with a measure in addition to net income to evaluate our performance prior to these costs. EBITDA is not an item recognized by U.S. GAAP (i.e. non-GAAP measure) and should not be considered as an alternative to net income, operating income or any other indicator of a company’s operating performance required by U.S. GAAP. EBITDA is not a measure of liquidity or cash flows as shown in our consolidated statement of cash flows. The definition of EBITDA used here may not be comparable to that used by other companies.
2) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period.
3) We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.
4) We define chartered-in days as the aggregate number of days in a period during which we chartered-in third-party vessels.
5) We define available days as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to familiarization upon acquisition, repairs or repairs under guarantee, vessel upgrades or special surveys. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues.
6) We define available days for the owned fleet as available days less chartered-in days.
7) We define operating days as the number of our total available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
8) We calculate fleet utilization as the number of our operating days during a period divided by the number of ownership days plus chartered-in days less drydocking days.
9) We define TCE rates as our voyage revenues less voyage expenses and charter hire expenses, divided by the number of the available days of our owned fleet during the period. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Our estimated TCE for the first quarter of 2022 is based on fixtures booked to date. Actual results may vary based on the actual duration of voyages and other factors. Accordingly, we are unable to provide, without unreasonable efforts, a reconciliation of estimated TCE for the first quarter to the most comparable financial measures presented in accordance with GAAP.

10) We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. We provide a full-service logistics solution to our customers utilizing our in-house commercial operating platform, as we transport key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes. Our wholly owned high quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk) enabling us to carry a wide range of cargoes. We make capital expenditures from time to time in connection with vessel acquisitions. As of February 24, 2022, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,635,000 dwt and an average age of 10.0 years.

The following table reflects Genco’s fleet list as of February 24, 2022: 

 Conference Call Announcement

Genco Shipping & Trading Limited will hold a conference call on Thursday, February 24, 2022 at 8:30 a.m. Eastern Time to discuss its 2021 fourth quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the conference call, dial (646) 828-8193 or (888) 220-8451 and enter passcode 9610869. A replay of the conference call can also be accessed for two weeks by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 9610869. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

Website Information

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please click the “Receive E-mail Alerts” link in the Investor Relations section of our website and submit your email address. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance.  These forward-looking statements are based on our management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii)  weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management fee expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete maintenance, repairs, and installation of equipment to comply with applicable regulations on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the relative cost and availability of low sulfur and high sulfur fuel, worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020 and our ability to realize the economic benefits or recover the cost of the scrubbers we have installed.; (xix) our financial results for the year ending December 31, 2021 and other factors relating to determination of the tax treatment of dividends we have declared; (xx) the financial results we achieve for each quarter that apply to the formula under our new dividend policy, including without limitation the actual amounts earned by our vessels and the amounts of various expenses we incur, as a significant decrease in such earnings or a significant increase in such expenses may affect our ability to carry out our new value strategy; (xxi) the exercise of the discretion of our Board regarding the declaration of dividends, including without limitation the amount that our Board determines to set aside for reserves under our dividend policy; (xxii) the duration and impact of the COVID-19 novel coronavirus epidemic, which may negatively affect general global and regional economic conditions; our ability to charter our vessels at all and the rates at which are able to do so; our ability to call on or depart from ports on a timely basis or at all; our ability to crew, maintain, and repair our vessels, including without limitation the impact diversion of our vessels to perform crew rotations may have on our revenues, expenses, and ability to consummate vessel sales, expense and disruption to our operations that may arise from the inability to rotate crews on schedule, and delay and added expense we may incur in rotating crews in the current environment; our ability to staff and maintain our headquarters and administrative operations; sources of cash and liquidity; our ability to sell vessels in the secondary market, including without limitation the compliance of purchasers and us with the terms of vessel sale contracts, and the prices at which vessels are sold; and other factors relevant to our business described from time to time in our filings with the Securities and Exchange Commission; and (xxiv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent reports on Form 8-K and Form 10-Q. Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Apostolos Zafolias
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8550

Source: Genco Shipping & Trading Limited