M C Shipping (AMEX:MCX)
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From Jun 2019 to Jun 2024
MC Shipping Inc. (AMEX: MCX) reported net income of
$2,921,619 or $0.33 per share on gross revenues (excluding interest
income) of $9,796,898 for the quarter that ended on September 30,
2005, compared to net income of $359,482 or $0.04 per share on gross
revenue of $8,127,173 for the quarter ended September 30, 2004 (see
Appendix 1 for the three months financial summary).
The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $ 6.8 million and the ratio
of EBITDA to interest expense was approximately 5.4 for the quarter
that ended on September 30, 2005. In the corresponding quarter of
2004, EBITDA was approximately $ 2.9 million and the ratio of EBITDA
to interest expense was approximately 3.1.
Vessel operating expenses (inclusive of dry-dock amortization)
were $3,835,790 in the third quarter 2005 compared to $4,463,744 in
the third quarter 2004. As a percentage of revenue, vessel operating
expenses plus amortization of dry-docking costs decreased from 54.9%
in the third quarter of 2004 to 39.2% in the third quarter of 2005.
Commenting on the third quarter results, Tony Crawford, the CEO of
the Company, observed, "the Company's net results in the last quarter
were in line with our estimates but we did suffer an increase in
vessel operating expenses that mostly related to general rise in the
crew wages and the price of lube oils. Nevertheless, the consistent
quarter-on-quarter improvements keep steadily forming solid foundation
for further growth. The Company commenced the process of negotiating
new contracts for the vessels whose charters expire in the near term
and continues to be optimistic about its prospects."
On November 7, 2005, the Board of Directors of the Company
reviewed the management structure of the Company. Since V.Ships is no
longer a major shareholder of the Company, the Board decided it was
appropriate to terminate the service agreement with V.Investments
Limited, whereby Mr. Crawford was seconded by V.Ships to MC Shipping.
Furthermore, because of the Board's strong desire to grow the Company,
Mr. Crawford was asked to accept the position as full time Chief
Executive Officer of MC Shipping and should further select suitable
supporting officers and staff to ensure the Company develops in line
with the Board's requirements.
MC Shipping Inc. fully or partially owns and operates a fleet of
16 vessels that includes 10 liquefied petroleum gas (LPG) carriers
from 3,000 to 78,000 m3, 4 container vessels of 2,300 TEU capacity and
2 small multipurpose/general cargo ships.
This news release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. One can generally identify
these forward-looking statements because they contain "expect",
"believe", "anticipate", "estimate", "confident" and other words that
convey a similar meaning. One can also identify these statements as
statements that do not relate strictly to historical or current facts.
One should understand that it is not possible to predict or identify
all factors that could cause actual results to differ from the
Company's forward-looking statements. The Company expressly disclaims
any obligation 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 such
statement is based.
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Appendix 1
Three months financial summary for the period ended September 30th,
2005 and 2004 (US$):
3 months ended 3 months ended
30-Sep-2005 30-Sep-2004
-------------- --------------
Charterhire and Other Income $9,796,898 $8,127,173
Commission on Charterhire (121,415) (186,890)
Vessel Operating Expenses (3,659,226) (4,129,633)
Depreciation and dry-dock amortization (2,649,480) (1,619,125)
General and Administrative Expenses (469,745) (857,011)
-------------- --------------
Operating Income 2,897,032 1,334,514
Interest Expense (1,255,384) (965,152)
Interest Income 111,852 30,241
Recognized deferred gain on sale of
vessels 1,189,597 -
Equity in income of associated companies (21,478) -
Loss on Repurchases of Notes - (40,121)
-------------- --------------
Net Income $2,921,619 $359,482
============== ==============
Net Income per share $0.33 $0.04
Average Number of shares outstanding 8,913,658 8,736,197
Shareholders equity $37,856,608 $31,559,617
Reconciliation of EBITDA to Net Income
Net Income $2,921,619 $359,482
Plus: interest expense 1,255,384 965,152
Plus: depreciation and amortization 2,649,480 1,619,125
-------------- --------------
EBITDA $6,826,483 $2,943,759
============== ==============
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Appendix 2
Nine months financial summary for the period ended September 30th,
2005 and 2004 (US$):
9 months ended 9 months ended
30-Sep-2005 30-Sep-2004
--------------- ---------------
Charterhire and Other Income $25,664,119 $23,904,609
Net Income $7,830,373 $1,696,325
Net Income per share $0.89 $0.19
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