GlobeNewswire Inc | Sep 9, 2021 08:30AM EDT

September 09, 2021

ATHENS, Greece, Sept. 09, 2021 (GLOBE NEWSWIRE) -- 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, 2021.

For the six monthsended June 30,2021, the Company reported:

-- Total revenues of $25.3 million -- Net Income of $1.7 million -- Adjusted EBITDA of $14.3 million* -- Total Assets of $353.1 million

Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said:

2021 has been another transformative year for the company. We completed the sale of all our non-scrubber fitted vessels and expanded our Crude Oil Tanker fleet with the delivery of two very high-specification Suezmax vessels, during the first half, and the addition of two very high specification VLCCs and one Suezmax newbuilding tanker, acquired recently, which are expected to be delivered during the first quarter of 2022 from Hyundai Heavy in South Korea, a world-class shipbuilder. All the vessels in our fleet, including our newbuildings, are and will be equipped with engines of modern design with improved Specific Fuel Oil Consumption (SFOC) and in compliance with the latest emission requirements, fitted with energy saving improvements in the hull, propellers, rudder as well as equipment that further reduces the fuel consumption and the emissions certified with an improved Energy Efficiency Design Index (Phase 2 compliance level as minimum). Furthermore, all of our vessels are fitted with ballast water treatment equipment and exhaust gas cleaning systems (scrubbers).

The two Suezmaxes that were delivered to our fleet in March and May 2021 were major contributors to our results for the first half of the year and we expect an even more significant contribution in the results of the second half of the year.

*Non-US GAAP Measures

This report describes Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), which is not a measure prepared in accordance with U.S. GAAP (i.e., a Non-US GAAP measure). We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, other operating loss, operating lease expenses, vessel impairments, gains on sale of vessels and gains/losses on derivative financial instruments.

Adjusted 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 of interest, gain/loss on financial instruments, taxes, depreciation and amortization, other operating losses, operating lease expenses, gains on sale of vessels and vessel impairments, and which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods and other items that the Company believes are not indicative of the ongoing performance of its core operations.

This Non-U.S. GAAP measure should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. In evaluating Adjusted EBITDA, 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. Our definition of Adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries. Adjusted EBITDA does not represent and should not be considered as an alternative to operating income or cash flow from operations, as determined by U.S. GAAP.

Reconciliation of Net (Loss) / Income to Adjusted EBITDA

Six months ended June 30,(Expressed in thousands of U.S. Dollars) 2020 2021 Net (Loss) / Income (2,868) 1,682 Add: Operating lease expenses - 5,378 Add: Vessel depreciation 7,172 3,339 Add: Impairment on vessels - 1,160 Add: Interest and finance costs 10,551 2,837 Add: Loss / (Gain) on financial instruments 849 (66) Add: Other operating loss 4,050 - Less: Gain on sale of vessels (5,291) - Less: Interest income (29) - Adjusted EBITDA 14,434 14,330

About TOP Ships Inc.

TOP Ships Inc. is an international ship-owning company.

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 (LOSS) /INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2021(Expressed in thousands of U.S. Dollars - except share and per share data) Six Months Ended June 30, June 30, 2020 2021REVENUES: Time charter revenues $ 32,594 $ 25,310 Total revenues 32,594 25,310 EXPENSES: Voyage expenses 1,209 608 Operating lease expenses - 5,378 Other vessel operating expenses 11,218 7,919 Vessel depreciation 7,172 3,339 Management fees-related parties 4,573 1,661 Dry-docking costs 356 26 Gain on sale of vessels (5,291 ) - Other operating loss 4,050 - Impairment on vessels - 1,160 General and administrative expenses 972 963 Operating income 8,335 4,256 OTHER INCOME (EXPENSES): Interest and finance costs (10,551 ) (2,837 ) (Loss)/ gain on derivative financial (849 ) 66 instruments Equity gains in unconsolidated joint 168 197 ventures Interest income 29 - Total other expenses, net (11,203 ) (2,574 ) Net (loss) / income and comprehensive (loss) / (2,868 ) 1,682 income Less: Deemed dividend for beneficial (1,067 ) - conversion feature of Series E Shares Less: Deemed dividend equivalents on Series (3,099 ) - E Shares related to redemption value Less: Dividends of Series E Shares (932 ) (915 ) Net (loss) / income and comprehensive (loss) / (7,966 ) 767 income attributable to common shareholders (Loss) / Earnings per common share, basic and (1.09 ) 0.02 diluted Weighted average common shares outstanding, basic 7,302,633 39,831,972 and diluted

TOP SHIPS INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND JUNE 30, 2021 (Expressed in thousands of U.S. Dollars - except share and per share data) December June 30, 31, 2020 2021ASSETS CURRENT ASSETS: Cash and cash equivalents 19,328 8,393 Trade accounts receivable - 57 Prepayments and other 904 653 Inventories 514 671 Vessels held for sale 24,340 25,887 Total current assets 45,086 35,661 FIXED ASSETS: Advances for vessels under construction 31,654 3,200 Vessels, net 136,292 232,552 Right of use assets from operating leases 45,222 41,280 Other fixed assets, net 548 539 Total fixed assets 213,716 277,571 OTHER NON CURRENT ASSETS: Restricted cash 4,000 4,000 Investments in unconsolidated joint ventures 28,230 25,426 Investments in affiliates - 8,425 Deposit asset 2,000 2,000 Total other non-current assets 34,230 39,851 Total assets 293,032 353,083 LIABILITIES AND STOCKHOLDERS? EQUITY CURRENT LIABILITIES: Current portion of long-term debt 5,324 10,061 Debt related to vessels held for sale - 19,314 Due to related parties 5,159 6,189 Accounts payable 2,544 2,535 Accrued liabilities 959 1,382 Unearned revenue 2,074 3,976 Current portion of derivative financial instruments 66 - Current portion of Operating lease liabilities 9,288 9,601 Total current liabilities 25,414 53,058 NON-CURRENT LIABILITIES: Non-current portion of long term debt 99,295 145,711 Non-current portion of Operating lease liabilities 33,805 28,864 Other non-current liabilities 300 275 Total non-current liabilities 133,400 174,850 COMMITMENTS AND CONTINGENCIES Total liabilities 158,814 227,908 MEZZANINE EQUITY: Preferred stock; 11,264 Series E Shares issued andoutstanding at December 31, 2020 and June 30, 2021 with 13,517 13,517 $0.01 par valueTotal mezzanine equity 13,517 13,517 STOCKHOLDERS? EQUITY: Preferred stock, $0.01 par value; 20,000,000 sharesauthorized; of which 100,000 Series D shares were 1 1 outstanding at December 31, 2020 and June 30, 2021Common stock, $0.01 par value; 1,000,000,000 sharesauthorized; 39,831,972 shares issued and outstanding at 398 398 December 31, 2020 and June 30, 2021Additional paid-in capital 465,672 454,947 Accumulated deficit (345,370 ) (343,688 )Total stockholders? equity 120,701 111,658 Total liabilities, mezzanine equity and stockholders? 293,032 353,083 equity