EuroDry .(US:EDRY)2023-09-19 16:00Revenue Performance - Time charter revenue for the six months ended June 30, 2023, was $20.3 million, a significant decrease from $41.7 million in the same period of 2022[15]. - Voyage charter revenue for the six months ended June 30, 2023, was $2.6 million, contributing to a total voyage revenue of $22.9 million, down from $41.7 million in 2022[21]. - For the six months ended June 30, 2023, net revenue decreased to $21.7 million from $39.3 million for the same period in 2022, reflecting a decline of approximately 44.6%[41]. Operating Performance - Average Time Charter Equivalent (TCE) rate decreased to $11,393 per vessel per day in the first half of 2023, compared to $24,025 per day in the same period of 2022, representing a decline of 52.6%[20]. - Net cash provided by operating activities for the six months ended June 30, 2023, was $7.5 million, down from $21.3 million in the same period of 2022[15]. - Operating expenses increased to $24.5 million for the six months ended June 30, 2023, compared to $18.2 million for the same period in 2022, marking an increase of approximately 34.5%[53]. - The net loss for the six months ended June 30, 2023, was $2.7 million, a significant decrease from a net income of $21.1 million in the same period of 2022[32]. Expenses and Liabilities - Vessel operating expenses increased to $10.1 million in the first half of 2023, compared to $9.2 million in 2022, reflecting an 11.2% increase in daily operating expenses per vessel[24]. - General and administrative expenses rose to $1.6 million in the first half of 2023, up from $1.4 million in the same period of 2022, primarily due to increased costs associated with the stock incentive plan[26]. - Interest expense and other financing costs rose to $2.9 million for the six months ended June 30, 2023, compared to $1.4 million for the same period in 2022, reflecting an increase of approximately 107.1%[30]. - Total liabilities as of June 30, 2023, were $81.9 million, a decrease from $85.6 million as of December 31, 2022[16]. Cash Flow and Liquidity - Cash and cash equivalents at June 30, 2023, were $39.5 million, an increase of $2.4 million from $37.1 million at December 31, 2022[37]. - Net cash from operating activities was $7.5 million for the six months ended June 30, 2023, down from $21.3 million in the same period of 2022, a decrease of approximately 64.8%[40]. - Net cash flows used in investing activities were $0.1 million for the six months ended June 30, 2023, a significant decrease from $37.5 million for the same period in 2022[42]. Shareholder Equity and Stock Activity - The company’s total shareholders' equity as of June 30, 2023, was $110,684,139, down from $113,941,117 at the beginning of the year[55]. - The company repurchased and canceled 61,948 common shares, resulting in a reduction of common stock by $619 and additional paid-in capital by $1,048,435[55]. - The company repurchased 43,424 shares of common stock for a total amount of $0.62 million during July, August, and September 2023[101]. Future Commitments and Financing - Future gross minimum revenues under non-cancellable time charter agreements total $19.7 million, with $16.1 million due by June 30, 2024[83]. - The company has a loan repayment schedule with total repayments of $78.035 million due by June 30, 2027, including a balloon payment of $10.16 million[5]. - As of June 30, 2023, the company had seven outstanding loans with a combined balance of $78.0 million, maturing between 2024 and 2027[46]. Derivatives and Interest Rate Management - For the six months ended June 30, 2023, the total gain on derivatives was $2,565,250, compared to $1,475,799 for the same period in 2022, reflecting an increase of approximately 74%[100]. - As of June 30, 2023, the company had one open interest rate swap contract for a notional amount of $10 million to manage exposure to floating rate long-term bank loans[92]. - As of June 30, 2023, the fair value of current interest rate swap contracts was $222,239, and the long-term portion was $113,854[99]. Vessel and Asset Management - The total number of vessels operated averaged 10.0 in the first half of 2023, down from 10.17 in the same period of 2022, with a decrease in voyage days from 1,772.5 to 1,700.8[21]. - Vessel depreciation for the six months ended June 30, 2023, was $5,111,289, slightly lower than $5,325,634 in the same period of 2022[57]. - The net book value of vessels decreased to $143,990,176 as of June 30, 2023, from $149,022,023 at the beginning of the year[67]. - Cash paid for vessel acquisitions was $0 in the first half of 2023, compared to $36,968,387 in the same period of 2022, indicating a halt in capital expenditures for new vessels[57]. Management and Operational Challenges - The company’s management fees increased from $1,464,064 in 2022 to $1,541,355 in 2023, reflecting a rise in operational costs[70]. - The company’s cash flows from investing activities were significantly lower in 2023, with a net cash used of $96,271 compared to $37,454,422 in 2022, indicating a strategic shift in investment[57]. - The company’s M/V "Good Heart" was offhire for about 48 days due to a detention incident, resulting in a provision of $0.5 million for anticipated costs, impacting operating results[84].