Ardmore Shipping Corp 6-K, filed Aug 1, 2023

Ardmore Shipping Corp (ASC)

6-K 2023-08-01 For: 2023-06-30

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Added on April 10, 2026

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Ardmore Shipping Corp filed this 6-K on August 1, 2023.

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	ARDMORE SHIPPING CORPORATION

Date: August 1, 2023	By:	/s/ Bart B. Kelleher
		Bart B. Kelleher
		Chief Financial Officer


	Three Months Ended
In thousands of U.S. Dollars	June 30, 2023		June 30, 2022		Variance		Variance (%)
Revenue, net	$	91,927		107,125		(15,198)	(14%)

Voyage expenses		(31,532)		(41,178)		9,646	23%
Vessel operating expenses		(15,258)		(15,943)		685	4%
Time charter-in
Operating expense component		(2,249)		(1,238)		(1,011)	(82%)
Vessel lease expense component		(2,070)		(1,140)		(930)	(82%)
Depreciation		(6,814)		(6,982)		168	2%
Amortization of deferred drydock expenditures		(895)		(959)		64	7%
General and administrative expenses
Corporate		(4,760)		(4,291)		(469)	(11%)
Commercial and chartering		(1,052)		(1,053)		1	0%
Unrealized gain on derivatives		-		296		(296)	(100%)
Interest expense and finance costs		(2,825)		(4,816)		1,991	41%
Loss on extinguishment		-		(78)		78	100%
Interest income		606		20		586	2930%
Net Income before taxes		25,078		29,763		(4,685)	16%
Income tax		(240)		(9)		(231)	(2,567%)
(Loss) from equity method investments		(331)		(67)		(264)	(394%)
Net Income	$	24,507		29,687		(5,180)	17%
Preferred dividend		(848)		(838)		(10)	(1%)
Net Income attributable to common stockholders	$	23,659		28,849		(5,190)	18%


	Six Months Ended
In thousands of U.S Dollars	June 30, 2023		June 30, 2022		Variance		Variance (%)
Revenue, net	$	210,160		170,493		39,667	23%

Voyage expenses		(68,095)		(68,253)		158	0%
Vessel operating expenses		(30,195)		(32,530)		2,335	7%
Time charter-in
Operating expense component		(5,114)		(2,344)		(2,770)	(118%)
Vessel lease expense component		(4,706)		(2,156)		(2,550)	(118%)
Depreciation		(13,756)		(14,772)		1,016	7%
Amortization of deferred drydock expenditures		(1,902)		(2,156)		254	12%
General and administrative expenses
Corporate		(9,820)		(8,759)		(1,061)	(12%)
Commercial and chartering		(2,224)		(1,944)		(280)	(14%)
Loss on vessels sold		—		(6,917)		6,917	100%
Unrealized (losses) / gains on derivatives		(31)		900		(931)	(103%)
Interest expense and finance costs		(5,689)		(8,954)		3,265	36%
Loss on extinguishment		—		(78)		78	100%
Interest income		845		30		815	2717%
Income before taxes		69,473		22,560		46,913	208%
Income tax		(297)		(43)		(254)	(591%)
(Loss) / profit from equity method investments		(580)		169		(749)	443%
Net Income	$	68,596		22,686		45,910	202%
Preferred dividend		(1,686)		(1,686)		0	0%
Net Income attributable to common stockholders	$	66,910		21,000		45,910	219%


CASH FLOW DATA	Six Months Ended
In thousands of U.S. Dollars	June 30, 2023		June 30, 2022
Net cash provided by operating activities	$	98,899		8,873
Net cash (used in) / provided by investing activities	$	(12,174)		13,252
Net cash (used in) financing activities	$	(86,320)		(32,188)


	For the Years Ending December 31,
	2023⁽¹⁾	2024	2025	2026
Number of vessels in drydock (excluding in-water surveys)	7	4	7	2

		Page
Unaudited Interim Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022		F-2
Unaudited Interim Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and June 30, 2022		F-3
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2023 and June 30, 2022		F-4
Unaudited Interim Condensed Consolidated Statements of Changes in Redeemable Preferred Stock and Stockholders’ Equity for the Three and Six Months Ended June 30, 2023 and June 30, 2022		F-5
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and June 30, 2022		F-6
Notes to the Unaudited Interim Condensed Consolidated Financial Statements		F-7


	As of
In thousands of U.S. Dollars, except as indicated	June 30, 2023	December 31, 2022
ASSETS
Current assets
Cash and cash equivalents	50,974	50,569
Receivables, net of allowance for bad debts of $2.0 million (2022: $2.2 million)	63,060	79,843
Prepaid expenses and other assets	4,450	4,521
Advances and deposits	2,145	2,160
Inventories	14,219	15,718
Current portion of derivative assets	201	4,927
Total current assets	135,049	157,738

Non-current assets
Investments and other assets, net	11,484	11,219
Vessels and vessel equipment, net	520,751	531,378
Deferred drydock expenditures, net	4,650	4,716
Advances for ballast water treatment and scrubber systems	13,028	5,530
Deferred finance fees, net	3,273	2,717
Operating lease, right-of-use asset	7,914	10,561
Total non-current assets	561,100	566,121

TOTAL ASSETS	696,149	723,859

LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
Current liabilities
Accounts payable	6,456	8,814
Accrued expenses and other liabilities	15,721	20,890
Deferred revenue	—	1,220
Accrued interest on debt and finance leases	937	863
Current portion of long-term debt	6,579	12,927
Current portion of finance lease obligations	1,946	1,857
Current portion of operating lease obligations	6,975	6,358
Total current liabilities	38,614	52,929

Non-current liabilities
Non-current portion of long-term debt	72,348	115,869
Non-current portion of finance lease obligations	42,654	43,643
Non-current portion of operating lease obligations	710	3,969
Other non-current liabilities	1,007	1,007
Total non-current liabilities	116,719	164,488

TOTAL LIABILITIES	155,333	217,417

Redeemable Preferred Stock
Cumulative Series A 8.5% redeemable preferred stock	37,043	37,043
Total redeemable preferred stock	37,043	37,043

Stockholders' equity
Common stock	433	426
Additional paid in capital	469,583	468,006
Accumulated other comprehensive income	46	1,468
Treasury stock	(15,636)	(15,636)
Retained earnings	49,347	15,135
Total stockholders' equity	503,773	469,399

Total redeemable preferred stock and stockholders’ equity	540,816	506,442

TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY	696,149	723,859


	Three Months Ended		Six Months Ended
In thousands of U.S. Dollars except share data	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Revenue, net	91,927	107,125	210,160	170,493

Voyage expenses	(31,532)	(41,178)	(68,095)	(68,253)
Vessel operating expenses	(15,258)	(15,943)	(30,195)	(32,530)
Time charter-in
Operating expense component	(2,249)	(1,238)	(5,114)	(2,344)
Vessel lease expense component	(2,070)	(1,140)	(4,706)	(2,156)
Depreciation	(6,814)	(6,982)	(13,756)	(14,772)
Amortization of deferred drydock expenditures	(895)	(959)	(1,902)	(2,156)
General and administrative expenses
Corporate	(4,760)	(4,291)	(9,820)	(8,759)
Commercial and chartering	(1,052)	(1,053)	(2,224)	(1,944)
Loss on vessels sold	—	—	—	(6,917)
Unrealized gains / (losses) on derivatives	—	296	(31)	900
Interest expense and finance costs	(2,825)	(4,816)	(5,689)	(8,954)
Loss on extinguishment	—	(78)	—	(78)
Interest income	606	20	845	30

Net Income before taxes	25,078	29,763	69,473	22,560

Income tax	(240)	(9)	(297)	(43)
(Loss) / profit from equity method investments	(331)	(67)	(580)	169
Net Income	24,507	29,687	68,596	22,686

Preferred dividend	(848)	(838)	(1,686)	(1,686)

Net Income attributable to common stockholders	23,659	28,849	66,910	21,000

Earnings per share, basic	0.57	0.82	1.63	0.60
Weighted average number of shares outstanding, basic	41,192,894	35,071,435	40,959,113	34,752,045
Earnings per share, diluted	0.57	0.81	1.60	0.60
Weighted average number of shares outstanding, diluted	41,706,251	35,574,082	41,692,820	34,830,153


						Accumulated
	Redeemable Preferred				Additional	other		Accumulated
	Stock		Common Stock		paid in	comprehensive	Treasury	deficit / retained
In thousands of U.S. Dollars	Shares	Amount	Shares	Amount	capital	income / (loss)	stock	earnings	TOTAL
Balance as of April 1, 2022	40	37,043	34,574	366	426,671	4,048	(15,636)	(127,770)	287,679
Issue of common stock	—	—	96	1	(1)	—	—	—	—
Share-based compensation	—	—	—	—	675	—	—	—	675
Changes in unrealized losses on cash flow hedges	—	—	—	—	—	1,205	—	—	1,205
Net proceeds from equity offering	—	—	2,437	24	17,706	—	—	—	17,730
Preferred dividend	—	—	—	—	—	—	—	(838)	(838)
Net income	—	—	—	—	—	—	—	29,687	29,687
Balance as of June 30, 2022	40	37,043	37,107	391	445,051	5,253	(15,636)	(98,920)	336,139

Balance as of April 1, 2023	41	37,043	40,999	430	468,731	745	(15,636)	40,101	494,370
Issue of common stock	—	—	297	3	(3)	—	—	—	—
Share-based compensation	—	—	—	—	856	—	—	—	856
Changes in unrealized gain on cash flow hedges	—	—	—	—	—	(698)	—	—	(698)
Preferred dividend	—	—	—	—	—	—	—	(848)	(848)
Dividend payment	—	—	—	—	—	—	—	(14,414)	(14,414)
Net income	—	—	—	—	—	—	—	24,507	24,507
Balance as of June 30, 2023	41	37,043	41,296	433	469,583	46	(15,636)	49,347	503,773


Derivatives designated as hedging instruments (in thousands of U.S. Dollars)	Balance Sheet location	June 30, 2023		December 31, 2022
Interest rate swap	Current portion of derivative assets	$	46	1,468
Interest rate swap	Non - current portion of derivative assets	$	—	—


Derivatives not designated as hedging instruments (in thousands of U.S. Dollars)	Balance Sheet location	June 30, 2023		December 31, 2022
Interest rate swap	Current portion of derivative assets	$	154	3,459
Interest rate swap	Non - current portion of derivative assets	$	—	—


Model Inputs
														Weighted
										Risk-free				Average Fair
	SARs	SARs	Exercise		Vesting	Grant		Dividend		rate of		Expected		Value @		Average Expected	Valuation
Grant Date	Awarded	Remaining	Price		Period	Price		Yield		Return		Volatility		grant date		Exercise Life	Method
15‑Jan‑16	205,519	16,849	$	9.20	3 yrs	$	9.20	6.63	%	1.79	%	58.09	%	$	2.20	4.0 – 5.0 yrs	Monte Carlo
04‑Mar‑20	549,020	—	$	5.25	3 yrs	$	5.25	0	%	0.73	%	46.42	%	$	2.04	4.5 yrs	Black-Scholes
04‑Mar‑21	610,691	176,360	$	4.28	3 yrs	$	4.28	0	%	0.66	%	55.39	%	$	1.93	4.5 yrs	Black-Scholes



		Weighted average
	No. of SARs	exercise price
Balance as of January 1, 2023	528,844	$	4.74
SARs exercised during the six months ended June 30, 2023	(335,635)	$	(5.18)
Balance as of June 30, 2023 (none of which are exercisable or convertible)	193,209	$	4.71


Grant Date	RSUs Awarded	Service Period	Grant Price
04-Mar-20	94,105	3 years	$	5.25
04-Mar-21	302,923	3 years	$	4.28
30-Mar-22	593,671	3 years	$	4.54
07-Jun-22	60,415	1 year	$	8.07
01-Sep-22	106,724	3 years	$	9.35
14-Sep-22	13,070	3 years	$	10.00
02-Mar-23	130,843	3 years	$	20.57
14-Jun-23	38,240	1 year	$	12.16


		Weighted average
		fair value at grant
	No. of RSUs	date
Balance as of January 1, 2023	908,209	$	5.31
RSUs granted during the six months ended June 30, 2023	182,153	$	18.05
RSUs vested during the six months ended June 30, 2023	(402,323)	$	(5.76)
Balance as of June 30, 2023 (none of which are vested)	688,039	$	8.42


	As of
In thousands of U.S. Dollars	June 30, 2023	December 31, 2022
Nordea/SEB Revolving Facility	—	22,500
ABN/CACIB Joint Bank Facility	49,229	104,927
ABN/CACIB Revolving Facility	27,229	—
ABN AMRO Revolving Facility	3,399	3,184
Total debt	79,857	130,611
Deferred finance fees	(930)	(1,815)
Net total debt	78,927	128,796
Current portion of long-term debt	6,713	13,429
Current portion of deferred finance fees	(134)	(502)
Total current portion of long-term debt	6,579	12,927
Non-current portion of long-term debt	72,348	115,869


		As of
In thousands of U.S. Dollars		June 30, 2023
2023⁽¹⁾		3,357
2024		6,713
2025		10,112
2026		6,713
2027		52,962
		79,857


		As of
In thousands of U.S. Dollars		June 30, 2023
2023⁽¹⁾		2,870
2024		5,710
2025		5,694
2026		5,486
2027 - 2030		37,347
Finance lease obligations		57,107
Amounts representing interest and deferred finance fees		(12,509)
Finance lease obligations, net of interest and deferred finance fees		44,598


Period		TOTAL
2023⁽¹⁾	$	170
2024		57
	$	227