RAMS Aries Maritime Transport Limited - Common Shares (MM)

Commences New Period Charter for Container Vessel ATHENS, Greece, September 18 /PRNewswire-FirstCall/ -- Aries Maritime Transport Limited (NASDAQ:RAMS) today reported its financial results for the three and six months ended June 30, 2008. The following financial review discusses the results for the three months ended June 30, 2008 compared with the results for the three months ended June 30, 2007 as well as results for the six months ended June 30, 2008 compared with the results for the six months ended June 30, 2007. In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius, which resulted in a book profit totaling US$13.6 million during the second quarter of 2008. The results for these vessels are reported as discontinued operations. Second Quarter Results Revenues of US$19.3 million from continuing operations were recorded for the three months ended June 30, 2008, compared to revenues of US$21.3 million recorded for the three months ended June 30, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions, total revenues were US$18.1 million and US$19.4 million for the three month periods ended June 30, 2008 and June 30, 2007, respectively. The decrease in revenues is primarily attributable to the lower utilization during the three months ended June 30, 2008 compared to the three months ended June 30, 2007. Vessel operating days totaled 1,092 for both quarters. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Total actual revenue days for the three months ended June 30, 2008 were 1,038 and total actual revenue days for the three months ended June 30, 2007 were 1,065. The Company defines revenue days as the total days the vessels were not out of service. Net income from continuing operations was US$1.7 million, or US$0.06 basic and diluted earnings per share, for the three months ended June 30, 2008, compared to net income of US$5.4 million, or US$0.19 basic and diluted earnings per share, recorded for the three months ended June 30, 2007. Results for the three month period ended June 30, 2008, included an unrealized gain of US$3.6 million from the change in the fair value of derivatives. Results for the three month period ended June 30, 2007 include an unrealized gain of US$2.2 million from the aforementioned derivatives. Net income from continuing and discontinued operations for the three months ended June 30, 2008 was US$13.2 million, or US$0.46 basic and diluted earnings per share, compared to net income of US$4.2 million, or US$0.15 basic and diluted earnings per share, recorded for the three months ended June 30, 2007. Adjusted EBITDA for the three months ended June 30, 2008 was US$7.8 million compared to US$12.3 million for the three months ended June 30, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.) Jeff Parry, Chief Executive Officer, commented, "At the onset of the current third quarter, our new management team initiated a review of the Company and developed a comprehensive turnaround plan focused on improving future performance and enhancing shareholder value. Consistent with our period charter approach, we have secured new contracts at favorable rates for the Stena Compass, the Stena Compassion and the MSC Seine. We have also transferred the commercial management of our container vessels in-house as we work to further improve our operating platform. Management remains dedicated to positioning Aries for long-term success and realizing the inherent value in the Company." Six-Month Results Revenues of US$39.3 million were recorded for the six months ended June 30, 2008, compared to revenues of US$43.3 million recorded for the six months ended June 30, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions, total revenues were US$36.9 million and US$39.2 million for the six month periods ended June 30, 2008 and June 30, 2007, respectively. The decrease in revenues is primarily attributable to the lower utilization during the six months ended June 30, 2008 compared to the six months ended June 30, 2007. During the six months ended June 30, 2008 total vessel operating days were 2,184 compared to total vessel operating days of 2,172 for the six months ended June 30, 2007. Total actual revenue days for the six months ended June 30, 2008 were 2,098 and were 2,144 for the six months ended June 30, 2007. Net loss from continuing operations was US$3.4 million, or US$0.12 basic and diluted earnings per share, for the six months ended June 30, 2008, compared to net income of US$9.1 million, or US$0.32 basic and diluted earnings per share, recorded for the six months ended June 30, 2007. Results for the six month period ended June 30, 2007 included an unrealized gain of US$1.7 million from the change in the fair value of derivatives. Net income from continuing and discontinued operations for the six months ended June 30, 2008 was US$6.3 million, or US$0.22 basic and diluted earnings per share, compared to net income of US$4.8 million, or US$0.17 basic and diluted earnings per share, recorded for the six months ended June 30, 2007. Adjusted EBITDA for the six months ended June 30, 2008 was US$15.9 million compared to US$25.2 million for the six months ended June 30, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.) Fleet Report Aries currently operates a fleet of nine double-hull products tankers and three container ships. In June 2008, the Company completed the sale of the Arius, a 1986-built double-hull products tanker, as well as the Energy 1, a 1989-built container vessel, and its sister ship, the MSC Oslo, for a total net price of approximately US$60.8 million. These transactions resulted in a book profit to earnings totaling US$13.6 million during the second quarter of 2008. The Company used the proceeds to reduce outstanding borrowings under its fully revolving credit facility. Fleet Deployment Currently, nine of Aries' 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 0.1 to 2.2 years. On July 18, 2008, Aries announced it renewed the bareboat charters for the Stena Compass, a 2006-built double-hull products tanker, and its sister ship, the Stena Compassion, with Stena Group. The charters will be for 23 to 25 months at a gross rate of US$18,700 per day per vessel, less 2.5% in brokerage commissions. The charters also include a profit-sharing component for Aries equal to 30% of the actual time charter equivalent (TCE) rate achieved above US$26,000 per day per vessel. On September 15, 2008, Aries commenced a period charter with MSC, the second largest container shipping line in the world, for the CMA CGM Seine, a 1990-built container vessel now named the MSC Seine, following the completion of repairs. The period charter is for a period of 12 months at a net rate of US$14,918.5 per day. The following table details Aries' fleet deployment: Year Charterer/ Expiration Charterhire Vessels Size Built Subcharterer of Charter (net per day) Products Tankers Altius 73,400 dwt 2004 Deiulemar/Enel Through US$14,860 6/09 Fortius 73,400 dwt 2004 Deiulemar/Enel Through US$14,860 8/09 Nordanvind 38,701 dwt 2001 PDVSA Through US$19,988 11/08 Ostria 38,701 dwt 2000 Spot market - - High Land 41,450 dwt 1992 Spot market - - High Rider 41,502 dwt 1991 Spot market - - Stena Compass 72,750 dwt 2006 Stena Group Through Bareboat 8/10 charter rate of US$ 18,232.50 + 30% of profits above US$26,000 Stena 72,750 dwt 2006 Stena Group Through Bareboat Compassion 12/10 charter rate of US$ 18,232.50 + 30% of profits above US$26,000 Chinook 38,701 dwt 2001 Stena Group Through US$17,062 11/08 +50% of profits above US$17,500 Container Vessels Saronikos 2,917 TEU 1990 CMA CGM Through US$20,400 Bridge 5/10 MSC Seine 2,917 TEU 1990 MSC Through US$14,918.50 (formerly CMA 9/09 CGM Seine) Ocean Hope 1,799 TEU 1989 China Shipping Through US$13,300 Container 6/09 Lines Summary of Selected Data Three Months Ended June 30, June 30, 2008 2007 ADJUSTED EBITDA RECONCILIATION (1) (All amounts in US$000's unless otherwise stated) NET INCOME FROM CONTINUING OPERATIONS 1,704 5,410 PLUS : NET INTEREST EXPENSE 3,953 4,432 PLUS : DEPRECIATION AND AMORTIZATION 5,806 4,678 PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES (3,639) (2,181) PLUS: STOCK-BASED COMPENSATION 29 - ADJUSTED EBITDA 7,853 12,339 FLEET DATA NUMBER OF VESSELS 12 12 NUMBER OF VESSELS ON PERIOD CHARTER 10 11 WEIGHTED AVERAGE AGE OF FLEET 10.3 9.3 OPERATING DAYS (2) 1,092 1,092 REVENUE DAYS (3) 1,038 1,065 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (4) 18,163 20,001 TOTAL VESSEL OPERATING EXPENSES (5) 8,715 6,315 ADJUSTED EBITDA (6) 7,191 11,299 Six Months Ended June 30, June 30, 2008 2007 ADJUSTED EBITDA RECONCILIATION (1) (All amounts in US$000's unless otherwise stated) NET (LOSS) INCOME FROM CONTINUING OPERATIONS (3,389) 9,105 PLUS : NET INTEREST EXPENSE 7,552 8,819 PLUS : DEPRECIATION AND AMORTIZATION 11,312 9,048 PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES (32) (1,731) PLUS: STOCK-BASED COMPENSATION 494 - ADJUSTED EBITDA 15,937 25,241 FLEET DATA NUMBER OF VESSELS 12 12 NUMBER OF VESSELS ON PERIOD CHARTER 10 11 WEIGHTED AVERAGE AGE OF FLEET 10.3 9.3 OPERATING DAYS (2) 2,184 2,172 REVENUE DAYS (3) 2,098 2,144 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (4) 18,402 20,103 TOTAL VESSEL OPERATING EXPENSES (5) 9,076 5,689 ADJUSTED EBITDA (6) 7,297 11,621 (1) Aries considers Adjusted EBITDA to represent the aggregate of net income, net interest expense, depreciation, amortization, stock based compensation expense and change in the fair value of derivatives. The Company's management uses Adjusted EBITDA as a performance measure. The Company believes that Adjusted EBITDA is useful to investors because the shipping industry is capital intensive and may involve significant financing costs. Adjusted 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 Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. (2) Operating days are defined as the total days the vessels were in the Company's possession for the relevant period. (3) Revenue days are defined as the total days the vessels were not out of service. (4) Time Charter Equivalent rate (TCE is determined by dividing revenues from voyages (net of voyage expenses) by actual revenue days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is also adjusted as follows to reflect that the Stena Compass and the Stena Compassion were each employed on a bareboat charter: an assumed TCE of US$24,500 per day has been included in respect of a) the 91 operating days of the vessels for each of the three month periods ended June 30, 2008, March 31, 2008, June 30, 2007 and the 90 operating days of the vessels for the three month period ended March 31, 2007. (5) Total Vessel Operating Expenses are defined as the sum of the vessel operating expenses, amortization of dry-docking and special survey expense and management fees adjusted to exclude the following operating days with respect to the Stena Compass and the Stena Compassion, which were employed on bareboat charters: (6) Average Adjusted EBITDA per day is calculated by dividing the Adjusted EBITDA by the Operating days. Suspension of Quarterly Dividend On September 12, 2008, Aries announced it suspended payment of its quarterly dividend, effective immediately. The decision follows the new management's strategic review of the Company's business and reflects the Company's focus on improving its long-term strength and operational results. Aries will evaluate the Company's dividend policy on an ongoing basis. Conference Call Information Aries will hold a conference call on Thursday, September 18, 2008, at 10:00 a.m. Eastern Time to discuss results for the second quarter of 2008. To access the conference call, dial +1-877-723-9519 for domestic callers, or +1-719-325-4833 for international callers, and use the reservation number 6140534. Following the teleconference, a replay of the call may be accessed by dialing +1-888-203-1112 for domestic callers, or +1-719-457-0820 for international callers, and using the reservation number 6140534. The replay will be available through October 2, 2008. The conference call will also be webcast live on the Company's website, http://www.ariesmaritime.com/. A replay of the audio webcast will be available following the call through October 2, 2008. About Aries Maritime Transport Limited Aries Maritime Transport Limited is an international shipping company that owns and operates products tankers and container vessels. The Company's products tanker fleet consists of five MR tankers and four Panamax tankers, all of which are double-hulled. The Company also owns a fleet of three container vessels that range in capacity from 1,799 to 2,917 TEU. Nine of the Company's 12 vessels are secured on period charters. Charters for three of the Company's products tanker vessels currently have profit-sharing components. "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as "forward-looking statements." We caution that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. All statements in this document that are not statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, such matters as future operating or financial results; statements about planned, pending or recent acquisitions, business strategy, future dividend payments and expected capital spending or operating expenses, including drydocking and insurance costs; statements about trends in the container vessel and products tanker shipping markets, including charter rates and factors affecting supply and demand; our ability to obtain additional financing; expectations regarding the availability of vessel acquisitions; and anticipated developments with respect to pending litigation. 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, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Aries Maritime Transport Limited believes 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, Aries Maritime Transport Limited cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements contained in this press release. 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 changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for oil and oil products, the effect of changes in OPEC's petroleum production levels, worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in Aries Maritime Transport Limited's voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists and other factors discussed in Aries Maritime Transport Limited's filings with the U.S. Securities and Exchange Commission from time to time. When used in this document, the words "anticipate," "estimate," "project," "forecast," "plan," "potential," "may," "should," and "expect" reflect forward-looking statements. ARIES MARITIME TRANSPORT LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED JUNE 30, 2008 AND JUNE 30, 2007 (All amounts expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited) (Unaudited) Three month Three month period ended June period ended June 30, 2008 30, 2007 REVENUES: Revenue from voyages 19,300 21,345 EXPENSES: Commissions (230) (319) Voyage expenses (1,273) (781) Vessel operating expenses (6,437) (4,690) General and administrative expenses (1,847) (795) Depreciation (5,945) (5,965) Amortization of dry-docking and special survey expense (1,030) (656) Management fees (463) (401) (17,225) (13,607) Net operating income 2,075 7,738 OTHER INCOME (EXPENSES): Interest expense (4,028) (4,605) Interest received 75 174 Other expenses, net (57) (78) Change in fair value of derivatives 3,639 2,181 Total other expenses, net (371) (2,328) Net / Income from continuing operations 1,704 5,410 Net Income / (Loss) from discontinued operations (including US$13,569 gain on disposal of vessels) 11,448 (1,170) Net Income 13,152 4,240 Earnings per share: Basic and diluted from continuing operations 0.06 0.19 Basic and diluted from discontinued operations 0.40 (0.04) Basic and diluted 0.46 0.15 Weighted average number of shares: Basic and diluted 28,616,877 28,478,137 OTHER FINANCIAL DATA Three month Three month (All amounts in thousands of U.S. period ended period ended dollars) June 30, 2008 June 30, 2007 Net cash provided by operating activities 5,386 4,909 Net cash provided by / (used in) investing activities 60,484 (1,506) Net cash (used in) financing activities (65,501) (4,270) ARIES MARITIME TRANSPORT LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2008 AND JUNE 30, 2007 (All amounts expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited) (Unaudited) Six month period Six month period ended June 30, ended June 30, 2008 2007 REVENUES: Revenue from voyages 39,272 43,372 EXPENSES: Commissions (499) (608) Voyage expenses (2,277) (1,764) Vessel operating expenses (13,737) (9,035) General and administrative expenses (3,890) (1,635) Depreciation (11,890) (11,918) Amortization of dry-docking and special survey expense (1,783) (1,262) Management fees (999) (798) (35,075) (27,020) Net operating income 4,197 16,352 OTHER INCOME (EXPENSES): Interest expense (7,733) (9,153) Interest received 181 334 Other expenses, net (65) (159) Change in fair value of derivatives 32 1,731 Total other expenses, net (7,585) (7,247) Net (Loss) / Income from continuing operations (3,388) 9,105 Net Income / (Loss) from discontinued operations (including US$13,569 gain on disposal of vessels) 9,677 (4,332) Net Income 6,289 4,773 Earnings per share: Basic and diluted from continuing operations (0.12) 0.32 Basic and diluted from discontinued operations 0.34 (0.15) Basic and diluted 0.22 0.17 Weighted average number of shares: Basic and diluted 28,616,877 28,478,137 OTHER FINANCIAL DATA Six month Six month (All amounts in thousands of U.S. period ended period ended dollars) June 30, 2008 June 30, 2007 Net cash provided by operating activities 5,976 10,572 Net cash provided by / (used in) investing activities 50,958 (1,572) Net cash (used in) financing activities (65,185) (6,182) ARIES MARITIME TRANSPORT LIMITED CONSOLIDATED BALANCE SHEETS (All amounts expressed in thousands of U.S. Dollars) (Unaudited) June 30, December 31, 2008 2007 ASSETS Current assets Cash and cash equivalents 4,193 12,444 Restricted cash 7,040 39 Trade receivables, net 5,128 2,219 Other receivables 1,956 1,033 Inventories 1,481 1,969 Prepaid expenses 2,128 1,681 Due from managing agent 2,725 814 Total current assets 24,651 20,199 Vessels and other fixed assets, net 340,711 400,838 Deferred charges, net 2,473 2,906 Restricted cash 1,569 1,548 Total non-current assets 344,753 405,292 Total assets 369,404 425,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 223,710 284,800 Accounts payable, trade 9,482 8,423 Accrued liabilities 8,701 5,297 Deferred income 728 2,291 Derivative financial instruments 5,904 5,936 Deferred revenue 4,456 4,656 Due to related parties 1,169 594 Total current liabilities 254,150 311,997 Deferred revenue 4,213 6,375 Total liabilities 258,363 318,372 Stockholders' equity Preferred Stock, US$0.01 par value, 30 million shares authorized, none issued. Common Stock, US$0.01 par value, 100 million shares authorized, 28.6 million shares issued and outstanding at June 30, 2008 (December 31, 2007: 28.6 million) 286 286 Additional paid-in capital 113,199 115,566 Retained Earnings/Deficit (2,444) (8,733) Total stockholders' equity 111,041 107,119 Total liabilities and stockholders' equity 369,404 425,491 Company Contact: Ioannis Makris Chief Financial Officer Aries Maritime Transport Limited +30-210-8983787 Investor and Media Contact: Michael Cimini Vice President The IGB Group +1-212-477-8261 DATASOURCE: Aries Maritime Transport Ltd CONTACT: Company Contact: Ioannis Makris, Chief Financial Officer, Aries Maritime Transport Limited, +30-210-8983787; Investor and Media Contact: Michael Cimini, Vice President, The IGB Group, +1-212-477-8261

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