Form 20-F ☒
|
Form 40-F ☐
|
TORO CORP.
|
||
Dated: August 9, 2023
|
||
By:
|
/s/ Petros Panagiotidis
|
|
Petros Panagiotidis
|
||
Chairman and Chief Executive Officer
|
◾ |
Total vessel revenues: $24.9 million, as compared to $25.8 million for the three months ended June 30, 2022, or a 3.5% decrease;
|
◾ |
Net income: $55.4 million, as compared to $5.4 million for the three months ended June 30, 2022, or a 925.9% increase;
|
◾ |
Earnings (basic) per common share: $3.34 per share, as compared to $0.57 per share for the three months ended June 30, 2022;
|
◾ |
EBITDA(1): $56.8 million, as compared to $7.7 million for the three months ended June 30, 2022;
|
◾ |
Cash and restricted cash of $128.2 million as of June 30, 2023, as compared to $42.5 million as of December 31, 2022;
|
◾ |
Delivery of the M/T Wonder Bellatrix to its new owners on June 22, 2023, after entering into an
agreement to sell the vessel on May 12, 2023 for $37.0 million, resulting in a net capital gain of $19.3 million;
|
◾ |
Delivery of the M/T Wonder Polaris to its new owners on June 26, 2023, after entering into an agreement
to sell the vessel on May 18, 2023 for $34.5 million, resulting in a net capital gain of $21.3 million;
|
◾ |
Acquisition of the LPG Dream Terrax on May 26, 2023, after entering into an agreement to purchase the
vessel on April 26, 2023 for $19.9 million;
|
|
◾ |
Acquisition of the LPG Dream Arrax on June 14, 2023, after entering into an agreement to purchase the
vessel on April 26, 2023 for $17.0 million; and
|
◾ |
On April 17, 2023, the Company entered into a subscription agreement (the “Subscription Agreement”) with Pani Corp., pursuant to which Toro issued and sold, and Pani Corp. purchased, 8,500,000 common shares for
gross proceeds of $19,465,000. As of June 30, 2023, the Company had 17,961,009 common shares issued and outstanding.
|
◾ |
Total vessel revenues: $56.0 million, as compared to $42.6 million for the six months ended June 30, 2022, or a 31.5% increase;
|
◾ |
Net income: $77.3 million, as compared to $6.7 million for the six months ended June 30, 2022, or a 1,053.7% increase;
|
◾ |
Earnings (basic) per common share: $5.13 per share, as compared to $0.70 per share for the six months ended June 30, 2022;
|
◾ |
EBITDA(1): $80.9 million, as compared to $11.1 million for the six months ended June 30, 2022; and
|
◾ |
Our spin-off (the “Spin-Off”) by Castor Maritime Inc. (“Castor”) was completed on March 7, 2023 and our shares commenced trading on the Nasdaq Capital Market on the same date.
|
Aframax / LR2 Tankers
|
||||||||
Vessel Name
|
Type
|
DWT
|
Year
Built
|
Country of
Construction
|
Type of
Employment
|
Gross Charter
Rate |
Estimated Redelivery Date
|
|
Earliest
|
Latest
|
|||||||
Wonder Sirius
|
Aframax / LR2
|
115,341
|
2005
|
Korea
|
TC(1) period
|
$40,000 per day
|
Nov-23
|
Jun-24
|
Wonder Vega
|
Aframax
|
106,062
|
2005
|
Korea
|
Tanker Pool(2)
|
N/A
|
N/A
|
N/A
|
Handysize Tankers
|
||||||||
Vessel Name
|
Type
|
DWT
|
Year
Built
|
Country of
Construction
|
Type of
Employment |
Gross Charter
Rate
|
Estimated Redelivery Date
|
|
Earliest
|
Latest
|
|||||||
Wonder Mimosa
|
Handysize
|
36,718
|
2006
|
Korea
|
Tanker Pool(3)
|
N/A
|
N/A
|
N/A
|
Wonder Formosa
|
Handysize
|
36,660
|
2006
|
Korea
|
Tanker Pool(3)
|
N/A
|
N/A
|
N/A
|
LPG Carriers
|
||||||||
Vessel Name
|
Type
|
DWT
|
Year
Built
|
Country of
Construction
|
Type of
Employment
|
Gross Charter
Rate
|
Estimated
Redelivery
Date
|
|
Earliest
|
Latest
|
|||||||
Dream Terrax
|
LPG carrier 5,000 cbm
|
4,743
|
2020
|
Japan
|
TC(1),(4) period
|
$310,000 per month
|
Aug-24
|
Aug-25
|
Dream Arrax
|
LPG carrier 5,000 cbm
|
4,753
|
2015
|
Japan
|
Voyage
|
$235,000 lump sum
|
11-Aug-23(5)
|
N/A
|
Dream Syrax
|
LPG carrier 5,000 cbm
|
5,158
|
2015
|
Japan
|
TC(1) period
|
$308,500 per month
|
Feb-24
|
Feb-24
|
Dream Vermax
|
LPG carrier 5,000 cbm
|
5,155
|
2015
|
Japan
|
TC(1) period
|
$314,950 per month
|
Mar-24
|
Mar-25
|
(1) |
TC stands for time charter.
|
(2) |
The vessel is currently participating in the V8 Plus Pool, a pool operating Aframax tankers aged 15 years or more that is managed by V8 Plus Management Pte. Ltd., a company in which our Chairman and Chief Executive Officer, Petros
Panagiotidis has a minority equity interest.
|
(3) |
The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels.
|
(4) |
The vessel has been fixed under a TC period contract of twelve months at $310,000 per month plus twelve months at $320,000 per month in Charterer’s option, with estimated delivery on about August 13, 2023.
|
(5) |
Estimated completion date of voyage.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(Expressed in U.S. dollars)
|
June 30,
2023
(unaudited)
|
June 30,
2022
(unaudited)
|
June 30,
2023
(unaudited)
|
June 30,
2022
(unaudited)
|
||||||||||||
Total vessel revenues
|
$
|
24,858,529
|
$
|
25,779,119
|
$
|
56,012,683
|
$
|
42,609,567
|
||||||||
Operating income
|
$
|
55,066,352
|
$
|
5,967,234
|
$
|
77,111,010
|
$
|
7,535,711
|
||||||||
Net income and comprehensive income
|
$
|
55,381,774
|
$
|
5,424,002
|
$
|
77,340,987
|
$
|
6,657,133
|
||||||||
EBITDA (1)
|
$
|
56,785,038
|
$
|
7,718,530
|
$
|
80,875,342
|
$
|
11,096,026
|
||||||||
Earnings (basic) per common share
|
$
|
3.34
|
$
|
0.57
|
$
|
5.13
|
$
|
0.70
|
||||||||
Earnings (diluted) per common share
|
$
|
0.92
|
$
|
0.10
|
$
|
1.28
|
$
|
0.12
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(Expressed in U.S. dollars except for operational data)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Ownership Days (1)(7)
|
769
|
819
|
1,489
|
1,629
|
||||||||||||
Available Days (2)(7)
|
758
|
779
|
1,435
|
1,589
|
||||||||||||
Operating Days (3)(7)
|
746
|
779
|
1,419
|
1,582
|
||||||||||||
Daily TCE Rate (4)
|
$
|
31,841
|
$
|
18,422
|
38,168
|
$
|
15,066
|
|||||||||
Fleet Utilization (5)
|
98
|
%
|
100
|
%
|
99
|
%
|
100
|
%
|
||||||||
Daily vessel operating expenses (6)
|
$
|
7,898
|
$
|
6,802
|
7,515
|
$
|
6,635
|
(1) |
Ownership Days are the total number of calendar days in a period during which we owned a vessel.
|
(2) |
Available Days are the Ownership Days in a period less the aggregate number of days our vessels are off-hire due to scheduled repairs, dry-dockings or special or intermediate surveys.
|
(3) |
Operating Days are the Available Days in a period after subtracting unscheduled off-hire and idle days.
|
(4) |
Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial
measure calculated and presented in accordance with U.S. GAAP.
|
(5) |
Fleet Utilization is calculated by dividing the Operating Days during a period by the number of Available Days during that period.
|
(6) |
Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the Ownership Days for such period.
|
(7) |
Our definitions of Ownership Days, Available Days, Operating Days, Fleet Utilization may not be comparable to those reported by other companies.
|
(In U.S. dollars except for number of share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
REVENUES
|
||||||||||||||||
Time charter revenues
|
3,613,038
|
1,849,970
|
5,519,288
|
4,836,315
|
||||||||||||
Voyage charter revenues
|
381,189
|
18,857,411
|
389,119
|
29,592,279
|
||||||||||||
Pool revenues
|
20,864,302
|
5,071,738
|
50,104,276
|
8,180,973
|
||||||||||||
Total vessel revenues
|
$
|
24,858,529
|
$
|
25,779,119
|
$
|
56,012,683
|
$
|
42,609,567
|
||||||||
EXPENSES
|
||||||||||||||||
Voyage expenses (including commissions to related party)
|
(723,319
|
)
|
(11,428,525
|
)
|
(1,242,116
|
)
|
(18,669,842
|
)
|
||||||||
Vessel operating expenses
|
(6,073,774
|
)
|
(5,571,051
|
)
|
(11,190,295
|
)
|
(10,807,764
|
)
|
||||||||
General and administrative expenses (including related party fees)
|
(858,322
|
)
|
(353,712
|
)
|
(1,841,586
|
)
|
(640,156
|
)
|
||||||||
Management fees - related parties
|
(955,500
|
)
|
(696,150
|
)
|
(1,657,500
|
)
|
(1,384,650
|
)
|
||||||||
Depreciation and amortization
|
(1,730,038
|
)
|
(1,762,447
|
)
|
(3,785,684
|
)
|
(3,571,444
|
)
|
||||||||
Recovery of provision for doubtful accounts
|
—
|
—
|
266,732
|
—
|
||||||||||||
Gain on sale of vessels
|
40,548,776
|
—
|
40,548,776
|
—
|
||||||||||||
Operating income
|
$
|
55,066,352
|
$
|
5,967,234
|
$
|
77,111,010
|
$
|
7,535,711
|
||||||||
Interest and finance costs, net (including related party interest costs) (1)
|
424,198
|
(203,366
|
)
|
541,954
|
(386,973
|
)
|
||||||||||
Other expenses, net
|
(11,352
|
)
|
(11,151
|
)
|
(21,352
|
)
|
(11,129
|
)
|
||||||||
Income taxes
|
(97,424
|
)
|
(328,715
|
)
|
(290,625
|
)
|
(480,476
|
)
|
||||||||
Net income and comprehensive income, net of taxes
|
$
|
55,381,774
|
$
|
5,424,002
|
$
|
77,340,987
|
$
|
6,657,133
|
||||||||
Dividend on Series A Preferred Shares
|
(353,889
|
)
|
—
|
(451,111
|
)
|
—
|
||||||||||
Deemed dividend on Series A Preferred Shares
|
(730,779
|
)
|
—
|
(931,034
|
)
|
—
|
||||||||||
Net income attributable to common shareholders
|
$
|
54,297,106
|
5,424,002
|
$
|
75,958,842
|
6,657,133
|
||||||||||
Earnings per common share, basic
|
$
|
3.34
|
$
|
0.57
|
$
|
5.13
|
$
|
0.70
|
||||||||
Earnings per common share, diluted
|
0.92
|
0.10
|
1.28
|
0.12
|
||||||||||||
Weighted average number of common shares outstanding, basic:
|
16,279,690
|
9,461,009
|
14,810,147
|
9,461,009
|
||||||||||||
Weighted average number of common shares outstanding, diluted:
|
59,025,087
|
52,206,406
|
59,492,793
|
54,143,655
|
|
June 30,
2023
|
December 31,
2022
|
||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
127,889,058
|
$
|
41,779,594
|
||||
Due from related parties
|
4,848,344
|
558,327
|
||||||
Other current assets
|
29,837,796
|
12,425,386
|
||||||
Total current assets
|
162,575,198
|
54,763,307
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Vessels, net
|
77,783,068
|
92,486,178
|
||||||
Advances for vessel acquisition
|
3,390,000
|
—
|
||||||
Restricted cash
|
350,000
|
700,000
|
||||||
Due from related parties
|
1,126,542
|
1,708,474
|
||||||
Other non-currents assets
|
2,873,525
|
7,821,144
|
||||||
Total non-current assets
|
85,523,135
|
102,715,796
|
||||||
Total assets
|
248,098,333
|
157,479,103
|
||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of long-term debt, net
|
1,304,917
|
2,606,302
|
||||||
Other current liabilities
|
8,697,415
|
3,912,749
|
||||||
Total current liabilities
|
10,002,332
|
6,519,051
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long-term debt, net
|
4,559,632
|
10,463,172
|
||||||
Total non-current liabilities
|
4,559,632
|
10,463,172
|
||||||
Total liabilities
|
14,561,964
|
16,982,223
|
||||||
MEZZANINE EQUITY:
|
||||||||
1.00% Series A fixed rate cumulative perpetual convertible preferred shares: 0 and 140,000 shares issued and outstanding as of December 31, 2022, and June 30, 2023, respectively, aggregate
liquidation preference of $0 and $140,000,000 as of December 31, 2022 and June 30, 2023, respectively.
|
118,103,169
|
—
|
||||||
Total mezzanine equity
|
118,103,169
|
—
|
||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
Former Net Parent Company investment
|
—
|
140,496,912
|
||||||
Common shares, $0.001 par value; 1,000 and 3,900,000,000 shares authorized; 1,000 and 17,961,009 shares issued; 1,000 and 17,961,009 shares outstanding as of December 31, 2022, and June 30,
2023 respectively.
|
17,961
|
—
|
||||||
Preferred shares, $0.001 par value: 0 and 100,000,000 shares authorized; Series B preferred shares: 0 and 40,000 shares issued and outstanding as of December 31,2022 and June 30, 2023
respectively.
|
40
|
—
|
||||||
Additional paid-in capital
|
56,795,721
|
—
|
||||||
(Accumulated deficit)/ Retained Earnings
|
58,619,478
|
(32
|
)
|
|||||
Total shareholders’ equity
|
115,433,200
|
140,496,880
|
||||||
Total liabilities, mezzanine equity and shareholders’ equity
|
$
|
248,098,333
|
$
|
157,479,103
|
(Expressed in U.S. Dollars)
|
Six Months Ended
June 30,
|
|||||||
2023
|
2022
|
|||||||
Cash Flows (used in)/provided by Operating Activities :
|
||||||||
Net income
|
$
|
77,340,987
|
$
|
6,657,133
|
||||
Adjustments to reconcile net income to net cash (used in)/provided by Operating activities :
|
||||||||
Depreciation and amortization
|
3,785,684
|
3,571,444
|
||||||
Amortization of deferred finance charges
|
115,074
|
62,909
|
||||||
Gain on sale of vessels
|
(40,548,776
|
)
|
—
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable trade, net
|
5,817,705
|
(5,416,468
|
)
|
|||||
Inventories
|
(66,884
|
)
|
(2,924,444
|
)
|
||||
Due from/to related parties
|
(4,035,130
|
)
|
2,111,830
|
|||||
Prepaid expenses and other assets
|
3,144,511
|
(1,264,091
|
)
|
|||||
Other deferred charges
|
—
|
(38,889
|
)
|
|||||
Accounts payable
|
3,039,191
|
1,727,697
|
||||||
Accrued liabilities
|
751,189
|
550,692
|
||||||
Deferred revenue
|
440,425
|
(542,347
|
)
|
|||||
Dry-dock costs paid
|
(1,447,121
|
)
|
(503,755
|
)
|
||||
Net Cash provided by Operating Activities
|
48,336,855
|
3,991,711
|
||||||
Cash flow (used in)/provided by Investing Activities:
|
||||||||
Vessel acquisitions and other vessel improvements
|
(37,778,507
|
)
|
(479,188
|
)
|
||||
Advances for vessel acquisition
|
(3,390,000
|
)
|
—
|
|||||
Net Proceeds from sale of vessel
|
69,102,804
|
—
|
||||||
Net cash provided by/ (used in) Investing Activities
|
27,934,297
|
(479,188
|
)
|
|||||
Cash flows (used in)/provided by Financing Activities:
|
||||||||
Net increase/ (decrease) in Former Parent Company Investment
|
211,982
|
(1,994,004
|
)
|
|||||
Issuance of Series B preferred shares
|
40
|
—
|
||||||
Issuance of common shares pursuant to private placement
|
19,415,001
|
|||||||
Payment of Dividend Preferred Shares A
|
(151,667
|
)
|
||||||
Repayment of long-term debt
|
(7,320,000
|
)
|
(1,700,000
|
)
|
||||
Payments related to Spin-Off
|
(2,667,044
|
)
|
—
|
|||||
Net cash provided by/ (used in) Financing Activities
|
9,488,312
|
(3,694,004
|
)
|
|||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash
|
85,759,464
|
(181,481
|
)
|
|||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
42,479,594
|
5,663,411
|
||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
128,239,058
|
$
|
5,481,930
|
(1) |
Includes interest and finance costs and interest income, if any.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In U.S. dollars, except for Available Days)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Total vessel revenues
|
$
|
24,858,529
|
$
|
25,779,119
|
$
|
56,012,683
|
$
|
42,609,567
|
||||||||
Voyage expenses -including commissions from related party
|
(723,319
|
)
|
(11,428,525
|
)
|
(1,242,116
|
)
|
(18,669,842
|
)
|
||||||||
TCE revenues
|
$
|
24,135,210
|
$
|
14,350,594
|
$
|
54,770,567
|
$
|
23,939,725
|
||||||||
Available Days
|
758
|
779
|
1,435
|
1,589
|
||||||||||||
Daily TCE Rate
|
$
|
31,841
|
$
|
18,422
|
$
|
38,168
|
$
|
15,066
|
Three Months Ended
June 30,
|
Six Months Ended
June 30, |
|||||||||||||||
(In U.S. dollars)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net Income
|
$
|
55,381,774
|
$
|
5,424,002
|
$
|
77,340,987
|
$
|
6,657,133
|
||||||||
Depreciation and amortization
|
1,730,038
|
1,762,447
|
3,785,684
|
3,571,444
|
||||||||||||
Interest and finance costs, net (1)
|
(424,198
|
)
|
203,366
|
(541,954
|
)
|
386,973
|
||||||||||
US source income taxes
|
97,424
|
328,715
|
290,625
|
480,476
|
||||||||||||
EBITDA
|
$
|
56,785,038
|
$
|
7,718,530
|
$
|
80,875,342
|
$
|
11,096,026
|
(1) |
Includes interest and finance costs and interest income, if any.
|