Republic of the Marshall Islands
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001-34648
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98-0637837
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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299 Park Avenue
12th Floor
New York, NY
(Address of Principal Executive Offices)
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10171
(Zip Code)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01. Regulation FD Disclosure
On April 21, 2014, Genco Shipping & Trading Limited (“Genco”), the owner of 6,356,471 shares of the Company’s Class B stock (representing an 11.05% ownership interest in the Company and 65.08% of the aggregate voting power of the Company’s outstanding shares of voting stock), and certain of its direct and indirect subsidiaries filed petitions for chapter 11 in the United States Bankruptcy Court for the Southern District of New York. The Conflicts Committee of the Company’s Board of Directors, which is comprised of independent directors, has been monitoring developments relating to the Genco bankruptcy proceedings and evaluating the Company’s rights arising therefrom, including, without limitation, the Company’s termination and other rights under the Management Agreement between the Company and Genco, in order to take or recommend such action as it deems appropriate.
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Press Release dated May 7, 2014. |
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BALTIC TRADING LIMITED
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DATE: May 7, 2014
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/s/ John C. Wobensmith
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John C. Wobensmith
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President and Chief Financial Officer
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Exhibit No. | Description |
99.1 | Press Release dated May 7, 2014. |
· | Declared a $0.01 per share dividend payable on or about May 27, 2014 to all shareholders of record as of May 20, 2014 based on Q1 2014 results; |
· | Recorded a net loss of $3.5 million, or $0.06 basic and diluted net loss per share for the first quarter; and |
· | Exercised our option to acquire two additional Ultramax newbuildings, to be named the Baltic Scorpion and the Baltic Mantis, for an aggregate purchase price of $56.0 million. |
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Q2 2014
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Q3-Q4 2014
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Estimated Costs (1)
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$2.7 million
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-
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Estimated Offhire Days (2)
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60
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-
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Three Months Ended
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|||||||
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March 31, 2014
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March 31, 2013
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||||||
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(Dollars in thousands, except share and per share data)
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|||||||
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(unaudited)
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|||||||
INCOME STATEMENT DATA:
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||||||||
Revenues
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$
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13,091
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$
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5,986
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||||
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||||||||
Operating expenses:
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||||||||
Voyage expenses
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420
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582
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||||||
Voyage expenses to parent
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168
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73
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||||||
Vessel operating expenses
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6,551
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3,864
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General, administrative and technical management fees
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1,972
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1,291
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Management fees to parent
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878
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608
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Depreciation and amortization
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5,103
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3,643
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||||||
Total operating expenses
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15,092
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10,061
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||||||
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Operating loss
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(2,001
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)
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(4,075
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)
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||||
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||||||||
Other (expense) income:
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||||||||
Other (expense) income
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(20
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)
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7
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|||||
Interest income
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10
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1
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||||||
Interest expense
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(1,510
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)
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(1,016
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)
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Other expense, net
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(1,520
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)
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(1,008
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)
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||||||||
Loss before income taxes
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(3,521
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)
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(5,083
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)
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Income tax expense
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(12
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)
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-
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|||||
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||||||||
Net loss
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$
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(3,533
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)
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$
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(5,083
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)
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||||||||
Net loss per share - basic
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$
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(0.06
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)
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$
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(0.23
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)
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||||||||
Net loss per share - diluted
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$
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(0.06
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)
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$
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(0.23
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)
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||||||||
Shares used in per share calculation - basic
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56,165,944
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22,357,844
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||||||
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||||||||
Shares used in per share calculation - diluted
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56,165,944
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22,357,844
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||||||
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March 31, 2014
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December 31, 2013
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||||||
BALANCE SHEET DATA:
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(unaudited)
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|||||||
Cash
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$
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39,461
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$
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58,193
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Current assets
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49,704
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66,690
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Total assets
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553,564
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557,367
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Current liabilities
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10,194
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8,639
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Total long-term debt (including current portion)
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166,813
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167,875
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Shareholders' equity
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380,807
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385,103
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||||||
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Three Months Ended
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|||||||
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March 31, 2014
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March 31, 2013
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||||||
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(unaudited)
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|||||||
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||||||||
Net cash provided by (used in) operating activities
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$
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1,422
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$
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(2,096
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)
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Net cash used in investing activities
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(17,173
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)
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-
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|||||
Net cash used in financing activities
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(2,981
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)
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(230
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)
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Three Months Ended
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|||||||
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March 31, 2014
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March 31, 2013
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FLEET DATA:
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(unaudited)
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|||||||
Total number of vessels at end of period
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13
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9
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||||||
Average number of vessels (1)
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13.0
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9.0
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Total ownership days for fleet (2)
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1,170
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810
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||||||
Total available days for fleet (3)
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1,114
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798
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Total operating days for fleet (4)
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1,108
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797
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Fleet utilization (5)
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99.5
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%
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100.0
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%
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AVERAGE DAILY RESULTS:
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Time charter equivalent (6)
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$
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11,229
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$
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6,685
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Daily vessel operating expenses per vessel (7)
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5,599
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4,771
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||||||
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Three Months Ended
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|||||||
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March 31, 2014
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March 31, 2013
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(Dollars in thousands)
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|||||||
EBITDA Reconciliation:
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(unaudited)
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|||||||
Net loss
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$
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(3,533
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)
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$
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(5,083
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)
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+ Net interest expense
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1,500
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1,015
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+ Depreciation and amortization
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5,103
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3,643
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+ Income tax expense
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12
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-
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||||||
EBITDA(8)
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$
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3,082
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$
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(425
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)
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Vessel
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Year
Built
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Charterer
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Charter Expiration(1)
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Employment Structure
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Expected
Delivery(2)
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Capesize Vessels
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Baltic Bear
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2010
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Swissmarine Services S.A.
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February 2015
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101.5% of BCI (3)
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Baltic Wolf
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2010
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Cargill International S.A.
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July 2014
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100% of BCI (4)
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Baltic Tiger
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2011
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Swissmarine Services S.A
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October 2014
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102.75% of BCI (5)
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Baltic Lion
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2012
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Cargill International S.A.
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November 2014
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102.75% of BCI (6)
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Ultramax Vessels
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Baltic Hornet
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2014
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TBD
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TBD
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TBD
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Q3 2014
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Baltic Wasp
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2014
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TBD
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TBD
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TBD
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Q4 2014
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Baltic Scorpion
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2015
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TBD
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TBD
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TBD
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Q2 2015
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Baltic Mantis
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2015
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TBD
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TBD
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TBD
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Q3 2015
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Supramax Vessels
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Baltic Leopard
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2009
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Daiichi Chuo Kisen Kaisha
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May 2014
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$9,700 (7)
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Baltic Panther
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2009
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Bulkhandling Handymax A/S
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August 2014
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Spot Pool (8)
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Baltic Jaguar
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2009
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Resource Marine Pte. Ltd. (part of the Macquarie group of companies)
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June 2014
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95% of BSI (9)
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Baltic Cougar
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2009
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Bulkhandling Handymax A/S
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August 2014
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Spot Pool (8)
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Handysize Vessels
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Baltic Wind
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2009
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Agriculture & Energy Carriers Ltd.
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June 2014
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$10,550 (10)
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Baltic Cove
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2010
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Trammo Bulk Carriers
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January 2015
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106% of BHSI (11)
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Baltic Breeze
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2010
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Cargill International S.A.
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July 2014
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115% of BHSI (12)
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Baltic Fox
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2010
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Clipper Logger Pool
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September 2015
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Spot Pool (13)
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Baltic Hare
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2009
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Clipper Logger Pool
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September 2015
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Spot Pool (13)
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(1) | The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. |
(2) | The dates for the vessels being delivered in the future are estimates based on guidance received from the sellers. |
(3) | We have agreed to an extension with Swissmarine Services S.A. on a spot market-related time charter based on 101.5% of the average of the daily rates of the Baltic Capesize Index (BCI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited (“Genco”). The minimum and maximum expiration dates of the time charter are February 1, 2015 and April 15, 2015, respectively. |
(4) | We have reached an agreement with Cargill International S.A. on a spot market-related time charter based on 100% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 5.00% brokerage commission, which includes the 1.25% commission payable to Genco. The duration of the spot market-related time charter is 21.5 to 26.5 months. |
(5) | We have reached an agreement with Swissmarine Services S.A. on a spot market-related time charter for 10.5 to 13.5 months based on 102.75% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on November 29, 2013. |
(6) | We have reached an agreement with Cargill International S.A. on a spot market-related time charter for 10.5 to 13.5 months based on 102.75% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on December 29, 2013. |
(8) | We have reached an agreement to enter these vessels into the Bulkhandling Handymax A/S Pool, a vessel pool trading in the spot market of which Torvald Klaveness acts as the pool manager. Baltic Trading can withdraw a vessel with three months’ notice. |
(9) | We have reached an agreement with Resource Marine Pte. Ltd. on a spot market-related time charter for a minimum of 20.5 months to a maximum end date of July 11, 2014 based on 95% of the average of the daily rates of the Baltic Supramax Index (BSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. |
(10) | We have reached an agreement with Agriculture & Energy Carriers Ltd. on a time charter for 2 to 4.5 months at a rate of $10,550 per day. Hire is paid every 15 days in advance net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on March 19, 2014. |
(11) | We have reached an agreement with Trammo Bulk Carriers on a spot market-related time charter for 10.5 months to a maximum expiration date of April 1, 2015 based on 106% of the average of the daily rates of the Baltic Handysize Index (BHSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on February 15, 2014. |
(12) | The rate for the spot market-related time charter is based on 115% of the average of the daily rates of the BHSI, as reflected in daily reports. Hire is paid every 15 days in advance net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. |
(13) | We have reached an agreement to enter these vessels into the Clipper Logger Pool, a vessel pool trading in the spot market of which Clipper Group acts as the pool manager. The vessels will remain in the pool for a minimum period of two years. |
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