TOPS TOP Ships Inc

TOP Ships Inc. (the “Company”), an international owner and operator of modern, fuel efficient "ECO" tanker vessels, announced today its unaudited financial results for the six months ended June 30, 2023.

As of and for six months ended June 30, 2023, the Company reported:

• Total revenues of $41.1 million
• Net Income of $5.8 million
• Earnings Per Share (“EPS”) of $0.13 and diluted EPS of $0.10
• EBITDA* of $23.4 million
• Total Assets of $446.2 million
• Total Cash and Cash Equivalents including Restricted Cash of $13.6 million

Mr. Evangelos J. Pistiolis, the President, Chief Executive Officer and Director of the Company, remarked:

“We are delighted to announce yet another successful period, marking our fifth consecutive six-month period of generating net income. This achievement brings us closer to celebrating our third year of sustained profitability. After successfully completing our newbuilding program in 2022, we don’t have any capital commitments going forward. We now possess one of the most modern tanker fleets in the industry, with an average age of less than three years, consisting of state-of-the-art vessels equipped with the latest eco-friendly and fuel-efficient specifications and features. Due to our successful long-term time charter strategy, we are enjoying a substantial charter backlog and a positive income and cashflow generation, which we anticipate will extend into 2024. I would like to emphasise, that in my opinion, the current trading price of our common shares does not reflect all of these positive aspects of the Company.”

About TOP Ships Inc.

TOP Ships Inc. is an international owner and operator of modern, fuel efficient eco tanker vessels focusing on the transportation of crude oil, petroleum products (clean and dirty) and bulk liquid chemicals.

For more information about TOP Ships Inc., visit its website: www.topships.org.

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,” “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.

Contact:

Alexandros TsirikosChief Financial OfficerTOP Ships Inc.Tel: +30 210 812 8107Email: atsirikos@topships.org

TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2023
(Expressed in thousands of U.S. Dollars - except share and per share data)
			Six Months Ended
			June 30,			June 30,
			2022			2023
REVENUES:
	Time charter revenues	$	36,060		$	36,710
	Time charter revenues from related parties		2,786			4,435
	Total revenues		38,846			41,145
EXPENSES:
	Voyage expenses		875			804
	Operating lease expenses		5,378			5,378
	Other vessel operating expenses		9,705			9,624
	Vessel depreciation		6,114			7,175
	Management fees-related parties		1,030			1,092
	Gain on sale of vessels		(78	)		-
	General and administrative expenses		691			799
	Operating income		15,131			16,273
OTHER INCOME (EXPENSES):
	Interest and finance costs		(6,927	)		(10,528	)
	Interest income		-			58
	Equity gains/(losses) in unconsolidated joint ventures		401			(29	)
	Total other expenses, net		(6,526	)		(10,499	)
Net income and comprehensive income			8,605			5,774
Less: Deemed dividend equivalents on Series F Shares related to redemption value			(14,400	)		-
Less: Dividends of preferred shares			(7,322	)		(3,485	)
Net (loss)/income and comprehensive income attributable to common shareholders			(13,117	)		2,289
(Loss)/Earnings per common share, basic			(6.15	)		0.13
(Loss)/Earnings per common share, diluted			(6.15	)		0.10
Weighted average common shares outstanding, basic			2,132,179			17,793,072
Weighted average common shares outstanding, diluted			2,132,179			33,079,436

TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2022 AND JUNE 30, 2023
(Expressed in thousands of U.S. Dollars - except share and per share data)
	December 31,			June 30,
	2022			2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	20,544			9,629
Trade accounts receivable	8			-
Prepayments and other	1,314			1,626
Inventories	1,026			1,057
Due from related parties	-			622
Total current assets	22,892			12,934
FIXED ASSETS:
Vessels, net	389,059			381,884
Right of use assets from operating leases	28,708			24,093
Other fixed assets, net	505			505
Total fixed assets	418,272			406,482
OTHER NON CURRENT ASSETS:
Restricted cash	4,000			4,000
Investments in unconsolidated joint ventures	22,173			20,804
Deposit asset	2,000			2,000
Total non-current assets	28,173			26,804
Total assets	469,337			446,220
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	12,344			34,874
Due to related parties	237			-
Accounts payable	1,953			1,759
Accrued liabilities	2,061			2,083
Unearned revenue	7,030			6,286
Current portion of Operating lease liabilities	8,610			8,795
Vessel fair value participation liability	-			3,605
Total current liabilities	32,235			57,402
NON-CURRENT LIABILITIES:
Non-current portion of long-term debt	221,370			192,309
Non-current portion of Operating lease liabilities	15,338			10,847
Other non-current liabilities	100			50
Vessel fair value participation liability	3,271			-
Total non-current liabilities	240,079			203,206
COMMITMENTS AND CONTINGENCIES
Total liabilities	272,314			260,608
MEZZANINE EQUITY:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; 13,452 Series E Shares issued and outstanding at December 31, 2022 and June 30, 2023 and 5,850,748 and 3,659,628 Series F Shares issued and outstanding at December 31, 2022 and June 30, 2023	59			37
Preferred stock, Paid-in capital in excess of par	86,292			60,021
Total mezzanine equity	86,351			60,058
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; of which 100,000 Series D shares were outstanding at December 31, 2022 and June 30, 2023	1			1
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 10,294,906 shares issued and outstanding at December 31, 2022 and 20,346,091 shares issued and outstanding at June 30, 2023	103			203
Additional paid-in capital	428,374			437,382
Accumulated deficit	(317,806	)		(312,032	)
Total stockholders’ equity	110,672			125,554
Total liabilities, mezzanine equity and stockholders’ equity	469,337			446,220

TOP SHIPS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2023
(Expressed in thousands of U.S. Dollars)
	Six months ended June 30,
	2022			2023
Net Cash provided by Operating Activities	13,947			13,023
Cash Flows from Investing Activities:
Advances for vessels under construction	(216,559	)		-
Net proceeds from sale of vessels	72,060			-
Returns of investments in unconsolidated joint ventures	1,449			1,340
Net Cash (used in)/provided by Investing Activities	(143,050	)		1,340
Cash Flows from Financing Activities:
Proceeds from debt	156,201			-
Principal payments of debt	(6,906	)		(7,813	)
Prepayment of debt	(54,179	)		-
Proceeds from issuance of series F preferred stock	47,630			-
Proceeds from related party debt	9,000			-
Prepayment of related party debt	(9,000	)		-
Proceeds from equity offerings, gross	9,217			13,561
Equity offerings costs	(574	)		(1,260	)
Dividends of Preferred shares	(6,921	)		(3,485	)
Payment of financing costs	(3,468	)		-
Redemption of preferred shares	-			(26,293	)
Proceeds from warrant exercises, net	-			12
Net Cash provided by/(used in) Financing Activities	141,000			(25,278	)
Net increase/(decrease) in cash and cash equivalents and restricted cash	11,897			(10,915	)
Cash and cash equivalents and restricted cash at beginning of year	6,370			24,544
Cash and cash equivalents and restricted cash at end of the period	18,267			13,629
Cash breakdown
Cash and cash equivalents	14,267			9,629
Restricted cash, non-current	4,000			4,000
SUPPLEMENTAL CASH FLOW INFORMATION
Capital expenditures included in Accounts payable/ Accrued liabilities/ Due to related parties	155			-
Interest paid net of capitalized interest	4,414			8,814
Finance fees included in Accounts payable/Accrued liabilities/Due to related parties	100			16
Dividends of Preferred shares included in Due to Related Parties	1,369			-
Offering expenses included in liabilities	141			-
Deemed dividend equivalents on Series F Shares related to redemption value	14,400			-
Settlement of Due to related parties with the issuance of Series F Shares	24,370			-
Related party S&P commissions relating to Proceeds from vessel sales included in Due to related parties	346			-

*Non-US GAAP Measures

This report describes earnings before interest, taxes, depreciation and amortization (EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a “Non-U.S. GAAP” measure). We define EBITDA as earnings before interest, taxes, depreciation and amortization.

EBITDA is a non-U.S. GAAP financial measure that is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that this non-U.S. GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period. This is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength.

EBITDA is not a measure of financial performance under U.S. GAAP, does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. EBITDA as presented below may not be comparable to similarly titled measures of other companies. See below for a reconciliation of EBITDA to Net Income, the most directly comparable U.S. GAAP measure.

Reconciliation of Net Income to EBITDA

		Six months ended June 30,
(Expressed in thousands of U.S. Dollars)		2022	2023
Net Income		8,605	5,774
	Add: Vessel depreciation	6,114	7,175
	Add: Interest and finance costs	6,927	10,528
	Less: Interest Income	-	(58)
EBITDA		21,646	23,419