ATHENS, Greece, May 14, 2008 (PRIME NEWSWIRE) -- Paragon Shipping Inc. (Nasdaq:PRGN), a global shipping transportation company specializing in dry bulk cargoes, announced today its results for the three months ended March 31, 2008.
For the three months ended March 31, 2008, the Company reported net income of $15.8 million and earnings per share basic and diluted were $0.60 and $0.59, respectively, compared to net income of $5.8 million and $0.43 earnings per share basic and diluted for the three months ended March 31, 2007.
Excluding all non-cash items described below, adjusted earnings per share basic and diluted for the first quarter of 2008 were $0.54 and $0.53, respectively. This compares to adjusted earnings per share basic and diluted of $0.49 for the first quarter of 2007. Please refer to the table at the end of this press release for a reconciliation of GAAP earnings per share to non-GAAP adjusted earnings per share.
First Quarter 2008 Financial Results:
Time charter revenue for the first quarter of 2008 was $40.5 million compared to $13.5 million in the first quarter in 2007. The Company reported net income of $15.8 million, or $0.60 and $0.59 per basic and diluted share, respectively, in the first quarter of 2008, calculated on 26,272,702 weighted average number of shares, basic, and on 26,735,470 weighted average number of shares, diluted, outstanding for the period and reflecting the impact of the non-cash items discussed below. In the first quarter of 2007 net income was $5.8 million, or $0.43 per basic and diluted share, calculated on 11,497,656 and 11,504,486 weighted average number of shares basic and diluted, respectively.
EBITDA was $27.1 million for the first quarter of 2008, compared to $10.5 million for the first quarter of 2007. This was calculated by adding to net income of $15.8 million for the three months ended March 31, 2008, net interest expense and depreciation that in the aggregate amounted to $11.3 million for the three months ended March 31, 2008. Adjusted EBITDA excluding all non-cash items described below was $25.6 million for the first quarter of 2008, compared to $10.3 million for the first quarter of 2007. Please see the table at the end of this release for a reconciliation of net income to EBITDA.
The Company operated an average of 11 vessels during the first quarter of 2008, earning an average time charter equivalent rate of $39,098 per day, compared to an average of 5.82 vessels during the first quarter of 2007, earning an average time charter equivalent rate of $24,498 per day. Adjusted to exclude the effect of the amortization of below market acquired time charters, the time charter equivalent rate for the first quarter of 2008 was $31,481, compared to $23,914 for the first quarter of 2007. Total adjusted operating expenses in the first quarter of 2008 were $6.1 million, or approximately $6,112 per day, including vessel operating expenses, management fees, general and administrative expenses and drydocking costs, but excluding $0.1 million of share-based compensation. In the first quarter of 2007, total adjusted operating expenses were $2.6 million, or approximately $4,896 per day, including vessel operating expenses, management fees and general and administrative expenses, but excluding $0.1 million of share-based compensation.
The Company's results for the three months ended March 31, 2008 included the following non-cash items:
* Non-cash revenue of $7.5 million and depreciation expense of $0.7 million associated with below market time charters attached to vessels acquired, which are amortized over the remaining period of the time charter as increases to time charter revenue and depreciation expense. These non-cash items contributed an aggregate of $6.8 million to net income, or $0.26 to basic and diluted earnings per share, for the three months ended March 31, 2008. * An unrealized loss from interest rate swaps of $5.2 million, or ($0.19) per basic and diluted share, for the three months ended March 31, 2008. * Non-cash expenses of $0.1 million, or ($0.01) per basic and diluted share, relating to the amortization up to March 31, 2008, of the compensation cost recognized for a total of 111,500 restricted common shares issued to executive officers, directors and employees.
In the aggregate, these non-cash items contributed $1.5 million to net income, or $0.06 to earnings per basic and diluted share, for the three months ended March 31, 2008.
Dividend Declared
Based on the financial results for the first quarter of 2008, on May 13, 2008 the Company's Board of Directors declared a quarterly dividend of $0.4375 per share, payable on May 29, 2008 to shareholders of record as of May 26, 2008.
Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, "We are pleased to announce strong year over year growth in revenues, earnings and cash flows in the first quarter of 2008, reflecting the successful expansion of our operations. During the beginning of 2008, our markets remained robust and we continued to execute on our strategic plan of forward chartering our vessels, as evidenced by our recent announcements regarding the successful fixing of charters for four of the six vessels coming off charter this year at significantly higher average rates than they were receiving previously. In addition, we continue to fulfill our commitment to our shareholders, declaring our fifth consecutive quarterly dividend of $0.4375 per share."
Mr. Bodouroglou concluded, "We've had an excellent start to 2008. In the coming months we will continue to focus on locking in future revenues by fixing the remaining two ships we have targeted for this year. Supported by our excellent financial position, we will also seek new opportunities to expand our fleet and drive further revenue growth through the acquisition of additional modern vessels. We believe we are well positioned as we seek to grow our earnings and cash flow in 2008 and beyond, and look forward with confidence to a strong year."
Time Charter Coverage Update
Pursuant to its time chartering strategy, Paragon Shipping charters vessels for periods ranging from one to three years. Since the beginning of 2008 the Company has successfully fixed four of the six vessels coming off charter this year at an aggregate average rate increase of 25%. As a result, the Company has currently fixed 100% and 84% of its available fleet days in 2008 and 2009, respectively.
Cash Flows
For the three months ended March 31, 2008, the Company generated net cash from operating activities of $17.0 million compared to $7.8 million in the three months ended March 31, 2007. For the three months ended March 31, 2008 net cash from investing activities was $3.0 million and cash used in financing activities was $1.9 million. For the three months ended March 31, 2007 net cash used in investing activities was $58.9 million and cash from financing activities was $30.7 million.
Conference Call and Webcast:
The Company's management will host a conference call to discuss the results on Thursday, May 15, 2008 at 9:00 a.m. Eastern Time.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: + 1 866 288 9315 (from the U.S.), + 44 (0) 800 3769 250 (from the UK), or + 30 211 180 2000 (all other callers). The access code for the call is "909".
A telephonic replay of the conference call will be available for 90 days by dialing + 1 866 288 9317 (from the U.S.), + 44 (0) 800 901 2906 (from the UK) or + 30 210 94 60 929 (all other callers). The access code for the replay is "909#".
Slides and audio webcast:
There will also be a live webcast of the conference call and accompanying slide presentation on the Paragon Shipping Inc. website (www.paragonship.com). Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software. The webcast will be archived on this site for one year.
About Paragon Shipping Inc.
Paragon Shipping Inc. is an Athens, Greece-based international shipping company specializing in the transportation of drybulk cargoes. The Company's current fleet consists of eleven vessels with a total carrying capacity of 706,358 dwt. For further information, please visit the Company's website at www.paragonship.com.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Updated Fleet List:
The following table represents our fleet as of May 14, 2008.
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Name Type Dwt Year Built
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Panamax
-------
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Deep Seas Panamax 72,891 1999
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Calm Seas Panamax 74,047 1999
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Kind Seas Panamax 72,493 1999
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Pearl Seas Panamax 74,483 2006
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Diamond Seas Panamax 74,274 2001
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Coral Seas Panamax 74,477 2006
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Golden Seas Panamax 74,475 2006
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Total Panamax 7 517,140
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Handymax
--------
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Blue Seas Handymax 45,654 1995
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Clean Seas Handymax 46,640 1995
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Crystal Seas Handymax 43,222 1995
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Total Handymax 3 135,516
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Supramax
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Sapphire Seas Supramax 53,702 2005
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Total Supramax 1 53,702
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Grand Total 11 706,358
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Summary Fleet Data:
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First Quarter Ended First Quarter Ended
March 31, 2007 March 31, 2008
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FLEET DATA
---------------------------------------------------------------------
Average number of vessels (1) 5.82 11
---------------------------------------------------------------------
Available days for fleet (2) 524 989
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Calendar days for fleet (3) 524 1,001
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Fleet utilization (4) 100% 99%
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AVERAGE DAILY RESULTS
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Time charter equivalent (5) 24,498 39,098
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Time charter equivalent
Adjusted (5) 23,914 31,481
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Vessel operating expenses (6) 3,256 4,204
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Management fees (7) 675 764
---------------------------------------------------------------------
General and administrative
expenses (8) Adjusted 965 1,144
---------------------------------------------------------------------
Total vessel operating
expenses (9) Adjusted 4,896 6,112
---------------------------------------------------------------------
(1) 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 calendar days each vessel was a part of our
fleet during the period divided by the number of calendar days
in the period.
(2) Available days for the fleet are the total calendar days the
vessels were in our possession for the relevant period after
subtracting for off hire days with major repairs, drydocks or
special or intermediate surveys.
(3) Calendar days are the total days we possessed the vessels in our
fleet for the relevant period including off hire days associated
with major repairs, drydockings or special or intermediate
surveys.
(4) Fleet utilization is the percentage of time that our vessels were
available for revenue generating available days and is determined
by dividing available days by fleet calendar days for the
relevant period.
(5) Time charter equivalent or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method
of calculating TCE is consistent with industry standards and is
determined by dividing revenue generated from charters net of
voyage expenses by available days for the relevant time period.
Voyage expenses primarily consist of port, canal and fuel costs
that are unique to a particular voyage, as well as commissions.
TCE is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a shipping
company's performance despite changes in the mix of charter types
(i.e., spot voyage charters, time charters and bareboat charters)
under which the vessels may be employed between the periods.
For the time charter equivalent adjusted, other non-cash items
relating to the below market time charters attached to vessels
acquired which are amortized over the remaining period of the
time charter as an increase to time charter revenue have been
excluded. The Company excluded amortization of below market
acquired time charters because the Company believes that these
non-cash items do not reflect fairly the fleet operational
results.
(6) Daily vessel operating expenses, which includes crew costs,
provisions, deck and engine stores, lubricating oil, insurance,
maintenance, repairs and dry-docking expenses, is calculated by
dividing vessel operating expenses by fleet calendar days for the
relevant time period. Dry-docking expenses for the first quarter
of 2008 amounted to $112,522 or $112 per day.
(7) Daily management fees is calculated by dividing management fees
by fleet calendar days for the relevant time period.
(8) Daily general and administrative expenses is calculated by
dividing general and administrative expense by fleet calendar
days for the relevant time period. Non-cash expenses relating to
the amortization of the share based compensation cost for options
and restricted shares have been excluded.
(9) Total vessel operating expenses, or TVOE, is a measurement of our
total expenses associated with operating our vessels. TVOE is the
sum of vessel operating expenses, management fees and general and
administrative expenses. Daily TVOE is calculated by dividing
TVOE by fleet calendar days for the relevant time period. Non-
cash expenses relating to the amortization of the share based
compensation cost for options and restricted shares have been
excluded.
Time Charter Equivalents Reconciliation
(Expressed in United States Dollars)
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First Quarter Ended First Quarter Ended
March 31, 2007 March 31, 2008
---------------------------------------------------------------------
Time Charter Revenues 13,538,554 40,454,094
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Less Voyage Expenses 38,056 51,897
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Less Commission 663,549 1,733,853
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Total Revenue, net of
voyage expenses 12,836,949 38,668,344
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Total available days 524 989
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Time Charter Equivalent 24,498 39,098
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Time Charter Equivalent
Adjusted Reconciliation
---------------------------------------------------------------------
Time Charter Revenues 13,538,554 40,454,094
---------------------------------------------------------------------
Less Voyage Expenses 38,056 51,897
---------------------------------------------------------------------
Less Commission 663,549 1,733,853
---------------------------------------------------------------------
Total Revenue, net of
voyage expenses 12,836,949 38,668,344
---------------------------------------------------------------------
Less Amortization of Below
Market Acquired Time
Charters 306,000 7,533,493
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Total Revenue, net of
voyage expenses Adjusted 12,530,949 31,134,851
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Total available days 524 989
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Time Charter Equivalent
Adjusted 23,914 31,481
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PARAGON SHIPPING INC.
Condensed Statement of Cash Flows
(Expressed in United States Dollars)
---------------------------------------------------------------------
First Quarter Ended First Quarter Ended
March 31, 2007 March 31, 2008
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Cash and cash equivalents,
beginning of year 32,331,848 31,328,637
---------------------------------------------------------------------
Provided by (used in):
---------------------------------------------------------------------
Operating Activities 7,818,348 17,033,876
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Investing Activities (58,872,193) 3,000,000
---------------------------------------------------------------------
Financing Activities 30,704,030 (1,949,593)
---------------------------------------------------------------------
Net (decrease) / increase
in cash and cash
equivalents (20,349,815) 18,084,283
---------------------------------------------------------------------
Cash and cash equivalents,
end of period 11,982,033 49,412,920
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EBITDA Reconciliation (1)
(Expressed in United States Dollars)
---------------------------------------------------------------------
First Quarter Ended First Quarter Ended
March 31, 2007 March 31, 2008
---------------------------------------------------------------------
Net Income 5,814,526 15,764,840
---------------------------------------------------------------------
Plus Net Interest expense 1,564,403 3,528,592
---------------------------------------------------------------------
Plus Depreciation 3,129,196 7,848,566
---------------------------------------------------------------------
Plus Amortization -- --
---------------------------------------------------------------------
EBITDA 10,508,125 27,141,998
---------------------------------------------------------------------
Adjusted EBITDA Reconciliation
---------------------------------------------------------------------
Net Income 5,814,526 15,764,840
---------------------------------------------------------------------
Non-cash revenue and
depreciation due to below
market acquired time
charters (299,729) (6,845,232)
---------------------------------------------------------------------
Unrealized loss from
interest rate swap 88,571 5,182,783
---------------------------------------------------------------------
Non-cash expenses from the
amortization of
compensation cost
recognized for restricted
shares issued 42,183 134,416
---------------------------------------------------------------------
Adjusted Net Income 5,645,551 14,236,807
---------------------------------------------------------------------
Plus Net Interest expense 1,564,403 3,528,592
---------------------------------------------------------------------
Plus Depreciation 3,129,196 7,848,566
---------------------------------------------------------------------
Plus Amortization -- --
---------------------------------------------------------------------
Adjusted EBITDA 10,339,150 25,613,965
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(1) Paragon Shipping Inc. considers EBITDA to represent net income
plus net interest expense and depreciation and amortization. The
Company's management uses EBITDA as a performance measure. The
Company believes that EBITDA is useful to investors, because the
shipping industry is capital intensive and may involve
significant financing costs. EBITDA is not an item recognized by
GAAP 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 GAAP. The Company's definition
of EBITDA may not be the same as that used by other companies in
the shipping or other industries. The Company excluded non-cash
items to derive at the adjusted net income and the adjusted
EBITDA because the Company believes that the non-cash items do
not reflect fairly the fleet operational results.
Reconciliation of GAAP Financial Information to Non-GAAP Financial
Information
(Expressed in United States Dollars)
---------------------------------------------------------------------
GAAP Financial Information First Quarter Ended First Quarter Ended
March 31, 2007 March 31, 2008
---------------------------------------------------------------------
Net Income 5,814,526 15,764,840
---------------------------------------------------------------------
Income allocable to Class B
common shares 862,767 --
---------------------------------------------------------------------
Income available to Class A
common shares 4,951,759 15,764,840
----------------------------------------------------------------------
Weighted average number of
Class A common shares basic 11,497,656 26,272,702
---------------------------------------------------------------------
Weighted average number of
Class A common shares
diluted 11,504,486 26,735,470
---------------------------------------------------------------------
Earnings per Class A common
shares basic 0.43 0.60
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Earnings per Class A common
shares diluted 0.43 0.59
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Reconciliation of Net Income
to Adjusted Net Income
---------------------------------------------------------------------
Net Income 5,814,526 15,764,840
---------------------------------------------------------------------
Non-cash revenue and
depreciation due to below
market acquired time
charters (299,729) (6,845,232)
---------------------------------------------------------------------
Unrealized loss from
interest rate swap 88,571 5,182,783
---------------------------------------------------------------------
Non-cash expenses from the
amortization of compensation
cost recognized for
restricted shares issued 42,183 134,416
---------------------------------------------------------------------
Adjusted Net Income 5,645,551 14,236,807
---------------------------------------------------------------------
Weighted average number of
common shares basic 11,497,656 26,272,702
---------------------------------------------------------------------
Weighted average number of
common shares diluted 11,504,486 26,735,470
---------------------------------------------------------------------
Adjusted earnings per share
basic (1) 0.49 0.54
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Adjusted earnings per share
diluted (1) 0.49 0.53
---------------------------------------------------------------------
(1) Adjusted earnings per share is not an item recognized by GAAP and
should not be considered as an alternative to Earnings per share
or any other indicator of a Company's operating performance
required by GAAP. The Company excluded non-cash items to derive
at the adjusted net income and the adjusted earnings per share
basic and diluted because the Company believes that these non-
cash items do not reflect fairly the fleet operational results.
Paragon Shipping Inc.
Unaudited Consolidated Balance Sheets
As of December 31, 2007 and March 31, 2008
(Expressed in United States Dollars)
-------------------------------------------------------------------
December 31, March 31,
2007 2008
Assets
Current assets
Cash and cash equivalents 31,328,637 49,412,920
Trade receivables 354,154 215,189
Other receivables 287,546 534,284
Prepaid expenses 654,576 835
Due from management company -- 681,826
Inventories 801,373 782,968
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Total current assets 33,426,286 51,628,022
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Fixed assets
Vessels at cost 633,378,703 633,378,703
Less: accumulated depreciation (18,268,064) (26,116,630)
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Total fixed assets 615,110,639 607,262,073
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Other assets 1,584,950 1,515,399
Restricted cash 8,010,000 5,010,000
Other long term receivables 1,340,602 1,797,705
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Total Assets 659,472,477 667,213,199
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Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable 2,487,291 2,609,702
Accrued expenses 5,494,431 5,531,708
Due to management company 1,642,805 --
Deferred income 3,176,938 3,367,681
Current portion of long-term debt 9,000,000 9,000,000
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Total current liabilities 21,801,465 17,509,091
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Long-term debt 309,000,000 306,750,000
Other long-term payable 586,499 972,719
Interest rate swap 1,370,701 6,553,484
Below market acquired time charters 51,077,602 43,544,109
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Total long-term liabilities 362,034,802 357,820,312
-------------------------------------------------------------------
Total Liabilities 383,836,267 375,329,403
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Commitments and Contingencies
Shareholders' equity:
Preferred shares: $0.001 par value,
25,000,000 authorized, none issued,
none outstanding at December 31, 2007
and March 31, 2008
Class A Common Shares, $0.001 par
value; 120,000,000 authorized
25,744,983 issued and outstanding at
December 31, 2007 and 26,961,612
issued and outstanding at March 31,
2008 25,745 26,962
Class B Common shares, $0.001 par
value; 5,000,000 authorized, none
issued and outstanding at December
31, 2007 and March 31, 2008 -- --
Additional paid-in capital 304,408,972 316,463,461
Accumulated deficit (28,798,507) (24,606,627)
-------------------------------------------------------------------
Total shareholders' equity 275,636,210 291,883,796
-------------------------------------------------------------------
Total Liabilities and Shareholders'
Equity 659,472,477 667,213,199
-------------------------------------------------------------------
Paragon Shipping Inc.
Unaudited Consolidated Statement of Operations
For the three months ended March 31, 2007 and March 31, 2008
(Expressed in United States Dollars)
--------------------------------------------------------------------
Three Months Three Months
Ended Ended
March 31, March 31,
2007 2008
Revenue
Time charter revenue 13,538,554 40,454,094
Less: commissions 663,549 1,733,853
--------------------------------------------------------------------
Net Revenue 12,875,005 38,720,241
--------------------------------------------------------------------
Expenses
Voyage expenses 38,056 51,897
Vessels operating expenses 1,706,239 4,208,176
Management fees charged by a related party 353,467 764,764
Depreciation 3,129,196 7,848,566
General and administrative expenses
(including share based compensation of
$42,183 for the three months ended March
31, 2007 and $134,416 for the three months
ended March 31, 2008 548,094 1,279,271
--------------------------------------------------------------------
Operating Income 7,099,953 24,567,567
--------------------------------------------------------------------
Other Income (Expenses)
Interest and finance costs (1,716,186) (4,088,598)
Unrealized loss on interest rate swap (88,571) (5,182,783)
Interest income 151,783 560,006
Gain from the change in fair value of
warrants 368,322 --
Foreign currency losses (775) (91,352)
--------------------------------------------------------------------
Total Other Expenses, net (1,285,427) (8,802,727)
--------------------------------------------------------------------
Net Income 5,814,526 15,764,840
Income allocable to Class B common shares 862,767 --
--------------------------------------------------------------------
Income available to Class A common shares 4,951,759 15,764,840
====================================================================
Earnings per Class A common share, basic $ 0.43 $ 0.60
Earnings per Class A common share, diluted $ 0.43 $ 0.59
Earnings per Class B common share, basic
and diluted $ 0.00 --
Weighted average number of Class A Common
Shares, basic 11,497,656 26,272,702
Weighted average number of Class A Common
Shares, diluted 11,504,486 26,735,470
Weighted average number of Class B common
shares, basic and diluted 2,003,288 --
Paragon Shipping Inc.
Unaudited Consolidated Statement of Shareholders' Equity
For the three months period ended March 31, 2008
(Expressed in United States Dollars)
Class A Shares
--------------
Additional
Number of Par Paid-in Accumulated
Shares Value Capital deficit Total
---------------------------------------------------------------------
Balance,
January 1,
2008 25,744,983 25,745 304,408,972 (28,798,507) 275,636,210
Issuance of
Class A
Common Shares,
from the
exercise of
warrants and
options 1,191,629 1,192 11,920,098 11,921,290
Share based
compensation 134,416 134,416
Issuance of
restricted
Class A Common
Shares 26,000 26 (26) --
Cancellation of
restricted
Class A Common
Shares -1,000 -1 1 --
Dividends paid (11,572,960) (11,572,960)
Net Income 15,764,840 15,764,840
---------------------------------------------------------------------
Balance,
March 31,
2008 26,961,612 26,962 316,463,461 (24,606,627) 291,883,796
---------------------------------------------------------------------
Paragon Shipping Inc.
Unaudited Consolidated Statement of Cash Flows
For the three months ended March 31, 2007 and March 31, 2008
(Expressed in United States Dollars)
Three Months Three Months
Ended Ended
March 31, March 31,
2007 2008
Cash Flows from Operating Activities
Net Income 5,814,526 15,764,840
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation 3,129,196 7,848,566
Amortization of below market acquired
time charters (306,000) (7,533,493)
Amortization of financing costs 34,197 117,474
Share based compensation 42,183 134,416
Unrealized loss on interest rate swap 88,571 5,182,783
Gain from the change in fair value of
warrants (368,322) --
Changes in assets and liabilities
Decrease in trade receivables -- 138,965
Decrease/(increase) in other
receivables 810,201 (246,738)
Decrease in prepaid expenses -- 653,471
(Increase)/decrease in inventories (204,511) 18,405
Increase in due from management
company (1,240,681) (681,826)
Increase in other long term
receivables -- (457,103)
Increase in trade accounts payable 857,824 122,411
Decrease in accrued expenses (98,680) (2,962,723)
Decrease in due to management company (1,741,872) (1,642,805)
Increase in deferred income 1,001,716 190,743
Increase in other long-term payable -- 386,220
-------------------------------------------------------------------
Net cash from operating activities 7,818,348 17,033,876
-------------------------------------------------------------------
Cash flows from investing activities
Acquisition of vessels and capital
expenditures (55,862,193) --
Restricted cash (3,010,000) 3,000,000
-------------------------------------------------------------------
Net cash (used in) / from investing
activities (58,872,193) 3,000,000
-------------------------------------------------------------------
Cash flows from financing activities
Proceeds from long-term debt 30,812,500 --
Repayment of long-term debt (2,250,000)
Payment of financing costs (108,470) (47,923)
Proceeds from the issuance of Class A
common shares from the exercise of
warrants and options -- 11,921,290
Dividends paid -- (11,572,960)
-------------------------------------------------------------------
Net cash from / (used in) financing
activities 30,704,030 (1,949,593)
-------------------------------------------------------------------
Net (decrease) / increase in cash and
cash equivalents (20,349,815) 18,084,283
Cash and cash equivalents at the
beginning of the period 32,331,848 31,328,637
-------------------------------------------------------------------
Cash and cash equivalents at the end
of the period 11,982,033 49,412,920
-------------------------------------------------------------------
Supplemental disclosure of cash flow
information
Cash paid during the period for
interest 1,543,765 4,259,341