The company missed the consensus estimates for net income; however, its revenues were in line with estimates.
Below are a few financial highlights:
- 4th quarter operating revenues of $14.5M compared to $20.8M same period a year ago
- 4th quarter net income of break even
- Revenue for the year was 57.5 million, compared to $66.7 million in the prior year
The fall off that the company experienced in the 4th quarter and year in general was due to lower charter rates which led to a weaker freight market compared to 2008. The company also experienced additional maintenance fees this year when they upgraded two of their oldest vessels. During the conference call the CEO estimated that about $600K was spent on upgrades to the two vessels.
The two oldest vessels were a hot topic during the questions section of the call. Some investors are wondering if they plan to hold these two for long term use or if they will try to sell them. Management responded by saying that the two vessels still make well above their expenses. The company anticipates that the extra expenses this quarter will result in longer-term economic benefits that will be reflected in future results.
Management seems to be optimistic about the future and will focus on their strategy of continuing to expand their fleet through accretive vessel acquisitions, the development of beneficial relationships with top-quality charterers, and the maintenance of a strong financial position to support future growth.
No comments:
Post a Comment