Press Release: C3is Inc. reports third quarter and nine months 2024 financial and operating results

Dow Jones11-18

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income/(loss) before gain/(loss) on warrants and share based compensation. EBITDA represents net income/(loss) before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income/(loss) before interest and finance costs, interest income, depreciation, gain/(loss) on warrants and share based compensation.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

 
 
(Expressed in 
United States 
Dollars, 
except number   Third Quarter Ended September      Nine-Month Period Ended 
of shares)                  30th,                      September 30th, 
--------------  ------------------------------  ------------------------------ 
                     2023            2024            2023            2024 
Net 
Income/(Loss) 
- Adjusted Net 
Income 
-------------- 
Net 
 income/(loss)       3,331,044       5,074,563       3,719,169     (2,895,769) 
(Less)/Plus 
 (gain)/loss 
 on warrants                --     (4,825,723)              --      10,350,813 
Plus share 
 based 
 compensation               --          78,149              --         204,629 
Adjusted Net 
 Income              3,331,044         326,989       3,719,169       7,659,673 
 
Net 
Income/(Loss) 
- EBITDA 
-------------- 
Net 
 income/(loss)       3,331,044       5,074,563       3,719,169     (2,895,769) 
Plus interest 
 and finance 
 costs                 620,282         443,387         621,011       2,143,810 
Less interest 
 income                     --       (176,333)              --       (818,900) 
Plus 
 depreciation        1,382,297       1,625,471       2,722,425       4,552,180 
EBITDA               5,333,623       6,967,088       7,062,605       2,981,321 
 
Net 
Income/(Loss) 
- Adjusted 
EBITDA 
-------------- 
Net 
 income/(loss)       3,331,044       5,074,563       3,719,169     (2,895,769) 
(Less)/Plus 
 (gain)/loss 
 on warrants                --     (4,825,723)              --      10,350,813 
Plus share 
 based 
 compensation               --          78,149              --         204,629 
Plus interest 
 and finance 
 costs                 620,282         443,387         621,011       2,143,810 
Less interest 
 income                     --       (176,333)              --       (818,900) 
Plus 
 depreciation        1,382,297       1,625,471       2,722,425       4,552,180 
Adjusted 
 EBITDA              5,333,623       2,219,514       7,062,605      13,536,763 
 
EPS 
-------------- 
Numerator 
-------------- 
Net 
 income/(loss)       3,331,044       5,074,563       3,719,169     (2,895,769) 
Less: 
 Cumulative 
 dividends on 
 preferred 
 shares              (191,667)       (191,667)       (212,500)       (570,833) 
Less: 
Undistributed 
earnings 
allocate to 
non-vested 
shares                      --        (41,432)              --              -- 
Less: Down 
 round deemed 
 dividend on 
 Series A 
 Perpetual 
 Convertible 
 Preferred 
 Shares                     --              --              --     (2,862,000) 
Net 
 income/(loss) 
 attributable 
 to common 
 shareholders, 
 basic               3,139,377       4,841,464       3,506,669     (6,328,602) 
Denominator 
-------------- 
Weighted 
 average 
 number of 
 shares                 73,012       6,974,686          45,706       3,955,613 
EPS - Basic              43.00            0.69           76.72          (1.60) 
Adjusted EPS 
-------------- 
Numerator 
-------------- 
Adjusted net 
 income              3,331,044         326,989       3,719,169       7,659,673 
Less: 
 Cumulative 
 dividends on 
 preferred 
 shares              (191,667)       (191,667)       (212,500)       (570,833) 
Less: 
 Undistributed 
 earnings 
 allocated to 
 non-vested 
 shares                     --         (1,148)              --        (26,884) 
Less: Down 
 round deemed 
 dividend on 
 Series A 
 Perpetual 
 Convertible 
 Preferred 
 Shares                     --              --              --     (2,862,000) 
Adjusted net 
 income 
 attributable 
 to common 
 shareholders, 
 basic               3,139,377         134,174       3,506,669       4,199,956 
 
Denominator 
-------------- 
Weighted 
 average 
 number of 
 shares                 73,012       6,974,686          45,706       3,955,613 
Adjusted EPS, 
 Basic                   43.00            0.02           76.72            1.06 
 
 

Reconciliation of TCE:

Time Charter Equivalent rate or "TCE" rate is determined by dividing voyage revenue net of voyage expenses by voyage days for the relevant time period. TCE is a non-GAAP measure which provides additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure to Time charter equivalent revenues assisting the Company's management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters or time charters, but not bareboat charters) under which the vessels may be employed between the periods. TCE assists our investors to assess our financial performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

 
 
 
  (Expressed in U.S. Dollars 
 except for available days and 
 Time charter equivalent rate)      Q3 2023    Q3 2024     9M 2023     9M 2024 
-------------------------------  ----------  ---------  ----------  ---------- 
Voyage revenues                  10,107,108  9,265,750  14,962,205  32,884,955 
Voyage expenses                   2,796,633  4,450,905   3,255,260  10,426,879 
Time charter equivalent 
 revenues                         7,310,475  4,814,845  11,706,945  22,458,076 
Total voyage days for fleet             262        368         624         962 
Time charter equivalent rate         27,903     13,084      18,761      23,345 
 
 

C3is Inc.

Unaudited Condensed Consolidated Statements of Operations

(Expressed in United States Dollars, except for number of shares)

 
                               Q3 2023     Q3 2024     9M 2023       9M 2024 
 -------------------------  ----------  ----------  ----------  ------------ 
 
Revenues 
 Revenues                   10,107,108   9,265,750  14,962,205    32,884,955 
 -------------------------  ----------  ----------  ----------  ------------ 
Total revenues              10,107,108   9,265,750  14,962,205    32,884,955 
--------------------------  ----------  ----------  ----------  ------------ 
 
Expenses 
 Voyage expenses             2,685,556   4,342,258   3,085,246    10,022,393 
 Voyage expenses -- 
  related party                111,077     108,647     170,014       404,486 
 Vessels' operating 
  expenses                   1,441,088   2,198,105   3,281,260     5,928,676 
 Vessels' operating 
  expenses -- related 
  party                         21,750      37,500      51,750       104,667 
 Drydocking costs               10,238          --     184,387            -- 
 Management fees -- 
  related party                115,280     161,920     274,560       425,040 
 General and 
  administrative expenses      283,037     267,267     822,523     2,150,779 
 General and 
  administrative expenses 
  -- related party             107,716     128,868      33,497       354,313 
 Depreciation                1,382,297   1,625,471   2,722,425     4,552,180 
Total expenses               6,158,039   8,870,036  10,625,662    23,942,534 
--------------------------  ----------  ----------  ----------  ------------ 
 
Income from operations       3,949,069     395,714   4,336,543     8,942,421 
--------------------------  ----------  ----------  ----------  ------------ 
 
Other (expenses)/income 
 Interest and finance 
  costs                          (562)     (2,638)     (1,291)      (11,230) 
 Interest and finance 
  costs -- related party     (619,720)   (440,749)   (619,720)   (2,132,580) 
 Interest income                    --     176,333          --       818,900 
 Foreign exchange 
  gain/(loss)                    2,257     120,180       3,637     (162,467) 
 Gain/(loss) on warrants            --   4,825,723          --  (10,350,813) 
 -------------------------  ----------  ----------  ----------  ------------ 
Other (expenses)/income, 
 net                         (618,025)   4,678,849   (617,374)  (11,838,190) 
--------------------------  ----------  ----------  ----------  ------------ 
 
 
Net income/(loss)            3,331,044   5,074,563   3,719,169   (2,895,769) 
--------------------------  ----------  ----------  ----------  ------------ 
 
Earnings/(Loss) per share (ii) 
 - Basic                         43.00        0.69       76.72        (1.60) 
 - Diluted                       15.43        0.01       19.72        (1.60) 
 
Weighted average number of shares 
 - Basic                        73,012   6,974,686      45,706     3,955,613 
 - Diluted                     215,869  19,078,149     188,563     3,955,613 
 
 

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November 18, 2024 09:10 ET (14:10 GMT)

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