RAMS Aries Maritime Transport Limited - Common Shares (MM)

ATHENS, Greece, July 24 /PRNewswire-FirstCall/ -- Aries Maritime Transport Limited (NASDAQ:RAMS) today reported financial results for the three months ended March 31, 2008. First Quarter Results Total revenues for the three month period ended March 31, 2008 were $24.9 million compared to $25.6 million in the prior year period. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions, total revenues were $23.7 million and $23.4 million for the three month periods ended March 31, 2008 and 2007, respectively. During the three month period ended March 31, 2008, vessel operating days totaled 1,365, compared to total vessel operating days of 1,350 for the three month period ended March 31, 2007. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Actual revenue days during the three month period ended March 31, 2008 totaled 1,292, compared to 1,234 days for the three month period ended March 31, 2007.The Company defines revenue days as the total days the vessels were not out of service. Aries reported a net loss of $6.9 million, or $0.24 per basic and diluted common share, for the three month period ended March 31, 2008, compared to net income of $0.5 million, or $0.02 per basic and diluted common share, for the three month period ended March 31, 2007. Results for the three month period ended March 31, 2008 included an unrealized loss of $3.6 million from the change in the fair value of derivatives, which are interest rate swaps entered into to hedge the Company's exposure to U.S. interest rates on its debt. Results for the three month period ended March 31, 2007 included an unrealized loss of $0.4 million from the change in the fair value of derivatives. Adjusted EBITDA for the three month period ended March 31, 2008 was $8.7 million compared to $13.1 million for the three month period ended March 31, 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, "Since joining Aries Maritime as the new CEO earlier this month, we have initiated a complete review of the Company's business with the aim of improving future results. While this review is ongoing, our new management team remains committed to preserving the financial flexibility of the Company, improving the operating performance of our vessels, maintaining our period charter approach, and executing a disciplined strategy to reconfigure our fleet profile. By implementing a comprehensive turnaround plan to achieve these objectives, we expect to drive long-term value for our shareholders." 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 $60.8 million. These transactions are expected to contribute a book profit totaling approximately $16 million to earnings during the second quarter of 2008. The Company used the proceeds to reduce outstanding borrowings under its fully revolving credit facility. Fleet Deployment Currently, eight of Aries' 12 vessels are deployed on period charters with established international charterers and state-owned entities. The charters have remaining periods ranging from approximately 0.1 to 2.4 years. Our vessels Ostria, High Land and High Rider are currently operating in the spot market while we seek period employment. On or about August and November of 2008, the Chinook and Nordanvind will complete their current charters to Stena Group and PDVSA, respectively. 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 $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 $26,000 per day per vessel. The charters are scheduled to commence upon expiration of the vessels' current charters. The CMA CGM Seine, a 1990-built container vessel, was redelivered to the Company on July 20, 2008, following completion of its scheduled voyage and cargo operations. Aries and the charterer mutually agreed to the redelivery following damage to the main engine of the vessel, which will undergo repairs that are expected to be completed by the end of August 2008. Aries is evaluating options including new period charter opportunities as well as a possible sale of the vessel. The following table details Aries' fleet deployment: Year Charterer/ Expiration Charterhire Size Built Subcharterer of Charter (net per day) Vessels Products Tankers Altius 73,400 dwt 2004 Deiulemar/Enel Through 6/09 $14,860 Fortius 73,400 dwt 2004 Deiulemar/Enel Through 8/09 $14,860 Nordanvind 38,701 dwt 2001 PDVSA Through 11/08 $19,988 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 8/08 Bareboat charter rate of $18,700 + 30% index- linked profit sharing component above $24,500 Stena Group Through Bareboat 8/10 charter rate of $18,232.50 + 30% of profits above $26,000 Stena 72,750 dwt 2006 Stena Group Through Bareboat Compassion 12/08 charter rate of $18,700 + 30% index-linked profit sharing component above $24,500 Stena Group Through Bareboat 12/10 charter rate of $18,232.50 + 30% of profits above $26,000 Chinook 38,701 dwt 2001 Stena Group Through $17,062 + 8/08 50% of profits above $17,500 Container Vessels Saronikos Bridge 2,917 TEU 1990 CMA CGM Through $20,400 5/10 CMA CGM Seine 2,917 TEU 1990 - - - Ocean Hope 1,799 TEU 1989 China Shipping Through $13,300 Container 6/09 Lines Summary of Selected Data Three Months Three Months Ended Ended March 31,2008 March 31,2007 ADJUSTED EBITDA RECONCILIATION (1) (All amounts in US$000's unless otherwise stated) NET INCOME (6,863) 533 PLUS : NET INTEREST EXPENSE 4,454 5,457 PLUS : DEPRECIATION AND AMORTIZATION 7,066 6,642 PLUS: CHANGE IN FAIR VALUE OF DERIVATIVES 3,607 451 PLUS: STOCK-BASED COMPENSATION 466 ADJUSTED EBITDA 8,730 13,083 FLEET DATA NUMBER OF VESSELS 15 15 NUMBER OF VESSELS ON PERIOD CHARTER 13 14 WEIGHTED AVERAGE AGE OF FLEET 12 11 OPERATING DAYS (2) 1,365 1,350 AVERAGE DAILY RESULTS TIME CHARTER EQUIVALENT RATE (3) 17,798 20,123 TOTAL VESSEL OPERATING EXPENSES (4) 9,718 7,490 ADJUSTED EBITDA (5) 6,396 9,691 (1) Aries considers Adjusted EBITDA to represent the aggregate of net income, net interest expense, depreciation, amortization, change in the fair value of derivatives and stock-base compensation expense. 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) Adjusted to reflect that the Stena Compass and the Stena Compassion were each employed on a bareboat charter; an assumed TCE of $24,500 per day, reflecting assumed operating costs of $5,800 per day, has been included in respect of (a) the 91 operating days of the vessels during the three month period ended March 31, 2008 and (b) the 90 operating days of the vessels during the three month period ended March 31, 2007 (4) 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: (a) the 91 operating days of the vessels during the three month period ended March 31, 2008, and (b) the 90 operating days of the vessels during the three month period ended March 31, 2007. (5) Average Adjusted EBITDA per day is calculated by dividing the Adjusted EBITDA by the Operating days. First Quarter 2008 Dividend On May 13, 2008, Aries' Board of Directors declared a $0.10 per share dividend in respect of the three month period ended March 31, 2008. The dividend was paid on June 6, 2008 to shareholders of record on May 23, 2008. The Company also announced that the Board of Directors has determined to set Aries' dividend policy as a fixed quarterly dividend of $0.10 per share. This dividend policy remains subject to the discretion of the Board, market conditions, loan covenants compliance and the provisions of Bermuda law. Conference Call and Webcast Presentation Aries will hold a conference call and webcast presentation on Thursday, July 24, 2008, at 10:00 a.m. Eastern Time to discuss results for the first quarter of 2008. To access the conference call, dial (800)-533-7619 for domestic callers, or (785)-830-1923 for international callers, and use the reservation number 7642331. The conference call will also be broadcast live over the Internet and include a slide presentation. To access the live webcast and slide presentation, please go to the Company's website: http://www.ariesmaritime.com/. The Company intends to place a slide presentation for the first quarter of 2008 on its website prior to the conference call. Following the teleconference, a replay of the call may be accessed by dialing 888-203-1112 for domestic callers, or 719-457-0820 for international callers, and using the reservation number 7642331. The replay will be available through August 7, 2008. A replay of the webcast presentation will be available following the call through August 7, 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. Eight of the Company's 12 vessels have period charter coverage. Charters for three of the Company's products tanker fleet 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 (All amounts expressed in thousands of U.S. Dollars, except share and per share amounts) (Unaudited) (Unaudited) Three month Three month period ended period ended March 31, 2008 March 31, 2007 REVENUES: Revenue from voyages 24,879 25,574 EXPENSES: Commissions (446) (396) Voyage expenses (2,493) (1,390) Vessel operating expenses (9,698) (7,066) General and administrative expenses (2,118) (843) Depreciation (7,114) (7,646) Amortization of dry-docking and special survey expense (1,145) (1,187) Management fees (653) (510) (23,667) (19,038) Net operating income 1,212 6,536 OTHER INCOME (EXPENSES): Interest expense (4,568) (5,632) Interest received 114 175 Other income (expenses), net (14) (95) Change in fair value of derivatives (3,607) (451) Total other expenses, net (8,075) (6,003) NET INCOME (LOSS) (6,863) 533 Earnings (loss) per share: Basic and diluted $(0.24) $0.02 Weighted average number of shares: Basic and diluted 28,616,877 28,416,877 OTHER FINANCIAL DATA Three month Three month period (All amounts in thousands of period ended ended March 31, U.S. dollars) March 31, 2008 2007 Net cash provided by operating activities 877 5,663 Net cash used in investing activities - (66) Net cash used in financing activities (7) (1,912) ARIES MARITIME TRANSPORT LIMITED CONSOLIDATED BALANCE SHEETS (All amounts expressed in thousands of U.S. Dollars) (Unaudited) March 31, December 31, 2008 2007 ASSETS Current assets Cash and cash equivalents 13,314 12,444 Restricted cash 35 39 Trade receivables, net 4,321 2,219 Other receivables 166 1,033 Derivative financial instruments - - Inventories 2,147 1,969 Prepaid expenses 1,457 1,681 Due from managing agent 848 814 Due from related parties 1,168 - Vessels and other fixed assets, net- for sale 29,477 - Total current assets 52,933 20,199 Vessels and other fixed assets, net 362,794 400,838 Deferred charges, net 2,671 2,906 Restricted cash 1,560 1,548 Total non-current assets 367,025 405,292 Total assets 419,958 425,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 284,800 284,800 Accounts payable, trade 9,383 8,423 Accrued liabilities 4,388 5,297 Deferred income 1,284 2,291 Derivative financial instruments 9,542 5,936 Deferred revenue 4,541 4,656 Due to related parties - 594 Total current liabilities 313,938 311,997 Long-term debt, net of current portion - - Deferred revenue 5,297 6,375 Total liabilities 319,235 318,372 Commitments and contingencies Stockholders' equity Preferred Stock, $0.01 par value, 30 million shares authorized, none issued. Common Stock, $0.01 par value, 100 million shares authorized, 28.6 million shares issued and outstanding at December 31, 2007 286 286 Additional paid-in capital 107,300 115,566 Deficit (6,863) (8,733) Total stockholders' equity 100,723 107,119 Total liabilities and stockholders' equity 419,958 425,491 Investor and Media Contacts: Michael Cimini Vice President The IGB Group +1-212-477-8261 DATASOURCE: Aries Maritime Transport Ltd CONTACT: Investor and Media Contacts: Michael Cimini, Vice President, The IGB Group, +1-212-477-8261

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