B+H Ocean Carriers, Ltd. Announces $202 Million Refinancing and Unaudited Results for the Six Month and Second Quarterly Periods Ended June 30, 2006.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- B+H Ocean Carriers B+H Ocean Carriers (OSE: BHOC, AMEX: BHO) is an international shipping company that operates seven bulk ships, seven product tankers and two chemical tankers. Based in Hamilton, Bermuda it also has offices in Oslo, Singapore, Bristol and New York. Ltd. (AMEX AMEX See: American Stock Exchange : BHO BHO Browser Helper Object BHO Bundeshaushaltsordnung BHO Barack Hussein Obama BHO Bhopal, India (airport code) BHO British History Online BHO Banjo Hangout (website) BHO Battle Handover ) today announced that it had concluded a $202 million credit facility with Nordea Nordea is a financial services group operating in Northern Europe, based in Stockholm. It is the result of the successive mergers and acquisitions of the Swedish, Finnish, Danish and Norwegian banks of Nordbanken, Merita Bank, Unibank and Kreditkassen (Christiania Bank) that took Bank Norge ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and , DvB Bank, HSH HSH abbr. Her (or His) Serene Highness Nordbank and Bank of Scotland Bank of Scotland plc is a commercial and clearing bank, based in Edinburgh, Scotland. With a history dating to the 17th century, it is the oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to . The first drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: is expected within August 2006 and will be used principally to repay existing shipmortgage indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . The facility includes $27 million for a payment to be made in January January: see month. on a ship already owned by the Company, and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $50 million for further acquisitions. The Company reported unaudited net income of $13.7 million or $1.93 per share basic and $1.87 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , for the six months ended June June: see month. 30, 2006, compared to unaudited net income of $8.5 million, or $1.88 per share basic and $1.78 diluted, for the six months ended June 30, 2005. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the six months ended June 30, 2006 was $23.9 million as compared to $16.0 million for the comparable period of 2005. Basic earnings per share calculations are based on weighted average shares outstanding of 7,082,781 and 4,523,317 respectively, for the six months ended June 30, 2006 and 2005. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of calculations are based on weighted average shares outstanding of 7,304,323 and 4,784,193 respectively, for the six months ended June 30, 2006 and 2005. The increase in the weighted average number of shares outstanding is due to the issuance of 3,243,243 shares in the Company's $60 million Equity Offering in May 2005. The Company reported unaudited net income of $4.8 million or $0.67 per share basic and $0.65 per share diluted, for the three months ended June 30, 2006, compared to unaudited net income of $6.5 million, or $1.25 per share basic and $1.19 diluted, for the three months ended June 30, 2005. EBITDA for the three months ended June 30, 2006 was $10.6 million as compared to $11.1 million for the comparable period of 2005. The decline in EBITDA is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to three vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. being offhire for scheduled drydockings and a general increase in vessel VESSEL, mar. law. A ship, brig, sloop or other craft used in navigation. 1 Boul. Paty, tit. 1, p. 100. See sup. 2. By an act of congress, approved July 29, 1850, it is provided that any person, not being an owner, who shall on the high seas, willfully, with. operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , as discussed below. Basic earnings per share calculations are based on weighted average shares outstanding of 7,072,107 and 5,191,888 respectively, for the three months ended June 30, 2006 and 2005. Diluted earnings per share calculations are based on weighted average shares outstanding of 7,293,538 and 5,428,346 respectively, for the three months ended June 30, 2006 and 2005. The increase in the weighted average number of shares outstanding is due to the issuance of 3,243,243 shares in the Company's $60 million Equity Offering in May 2005. The following is a discussion of our financial condition and results of operations for the six month and quarterly periods ended June 30, 2006 and 2005. Six Months ended June 30, 2006 (unaudited) versus June 30, 2005 (unaudited) Revenues Revenues increased $12.1 million in the six months ended June 30, 2006 over the comparable period in 2005 and time-charter equivalent ("TCE TCE trichloroethylene. TCE Environment A volatile chlorinated hydrocarbon that boils at 88ºC and is highly soluble–1000 ppm in water, with various industrial uses Toxicity Peripheral neuropathy, carcinogenic. ") revenue increased $10.1 million or 34.3% for the six months ended June 30, 2006 over the six months ended June 30, 2005. TCE revenue represents gross revenue less voyage VOYAGE, marine law. The passage of a ship upon the seas, from one port to another, or to several ports. 2. Every voyage must have a terminus a quo and a terminus ad quem. related expenses. This measure is used to compare time-charter and voyage revenues. The increases in revenue and TCE are due to the increase in the number of vessels in the fleet. The Company, through wholly-owned subsidiaries, acquired one combination carrier and one Panamax product tanker in the third quarter of 2005 and one combination carrier in the first quarter of 2006. The Company sold one MR product tanker in the third quarter of 2005. In addition, the three combination carriers acquired in the first quarter of 2005 were owned for 347 days in the six months ended June 30, 2005 versus 543 days in the six months ended June 30, 2006. Other revenue includes $0.9 million earned in respect of the combination carrier acquired in 2006, in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. time-charter revenue, from the January 15, 2006 effective date of the purchase until the closing date and $0.2 million representing settlement proceeds from the Company's claim against Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh for lost time-charter revenue. Voyage expenses Voyage expenses increased $1.9 million in the six month period ended June 30, 2006 as compared the same period of 2005. This increase is due to the fact that there were 242 voyage days in the six months ended June 30, 2006 and only 155 voyage days in the same period of 2005. Voyage expenses include port, canal and fuel charges for which the shipowner Ship´own`er n. 1. Owner of a ship or ships. Noun 1. shipowner - someone who owns a ship or a share in a ship is responsible on a voyage charter but not when a vessel is on either a time or bareboat charter A bareboat charter is an arrangement for the hiring of a boat, whereby no crew or provisions are included as party of the agreement; instead, the people who rent the boat from the owner are responsible for taking care of such things. . In addition, voyage expenses include brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions on time-charters and other commercial overhead. Vessel operating expenses Vessel operating expenses increased $3.4 million from the six month period ended June 30, 2005 to the same period of 2006. The increase is due to the increase in the number of vessels comprising the fleet, as noted above, including those purchased during the first half of 2005 which were owned for the full six month period in 2006. Vessel depreciation Vessel depreciation increased $2.3 million for the six month period ended June 30, 2006 as compared to the comparable period of 2005. This increase is due to the increase in the number of vessels and to the higher cost of the vessels as compared to the MR fleet. General and administrative expenses Management fees increased by $0.2 million, or 42%, to $0.5 million for the six month period ended June 31, 2006 as compared to $0.3 million for the prior period. The increase is due to the increase in the number of vessels and therefore the number of months during which fees were incurred. Consulting, professional and other expenses increased $0.6 million or 39%. A portion of the increase is attributable to an increase in consulting fees and the balance is attributable to costs for director and officers insurance, legal fees, administrative fees, travel and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most . Interest expense and interest income The $2.5 million (118%) increase in interest expense for the six months ended June 30, 2006, as compared to the same period in 2005, is due to the increase in debt for the acquisition of two vessels in the third and fourth quarters of 2005 and the acquisition of a combination carrier in 2006. The outstanding debt increased $49.2 million from June 30, 2005 to June 30, 2006. In addition, the average daily interest rate for the six months ended June 30, 2006 was 4.84% versus an average daily rate of 2.87% for the six month period ended June 30, 2005. The increase in interest income of $0.9 million is also due to the increase in interest rates. In addition, the average cash balance for the first six months of 2006 was $54.5 million as compared to the average cash balance for the same period of 2005 of $28.5 million. Equity in income of Nordan OBO OBO Or Best Offer (used in for sale ads) OBO On Behalf Of OBO Oboe (music scores) OBO Observation (UK) OBO One By One (animal rescue) II Equity in income of Nordan OBO II of $0.8 million represents income from the Company's 50% interest in an entity which is the disponent owner of a 1992-built 75,000 DWT DWT abbr. 1. deadweight tonnage 2. deadweight tons combination carrier through a bareboat charter party. Gain on fair value of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. The Company entered into two interest rate swaps during 2005 which are required to be marked to market through the statement of income. The net increase in the value of these swaps from December December: see month. 31, 2005 to June 30, 2006 was $1.4 million. Quarter Ended June 30, 2006 (unaudited) versus June 30, 2005 (unaudited) Revenues Revenues from voyage and time charters increased $4.3 million or 23% from the three month period ending June 30, 2005 and time-charter equivalent ("TCE") revenue increased $1.7 million or 9.8% from the second quarter of 2005 to the same period of 2006. TCE revenue represents gross revenue less voyage related expenses. This measure is used to compare time-charter and voyage revenues. The increases in revenue and TCE are predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. due to the vessel acquisitions made in 2005 and 2006. The Company, through wholly-owned subsidiaries, acquired one combination carrier and one Panamax product tanker in the third quarter of 2005, one combination carrier and a 50% interest in another combination carrier during the first quarter of 2006 and one Panamax product tanker at the end of June 2006. One MR product tanker was sold in the third quarter of 2005. In addition, the Company had 72 days of offhire in the second quarter related to two special surveys and the conversion of one MR tanker to a double hulled A double hull is a ship hull design and construction method where the bottom and sides of the ship have two complete layers of watertight hull surface: one outer layer forming the normal hull of the ship, and a second inner hull which is somewhat further into the ship, perhaps a vessel. This offhire reduced the Company's TCE by approximately $1.3 million. As a result of these transactions and activity, there was a net increase in revenue earning days of approximately 11%. Other revenue of $0.2 million represents settlement of the Company's claim against Enron for lost time-charter revenue. Voyage expenses Voyage expenses for the quarter ended June 30, 2006 increased $2.6 million or 215% from the quarter ended June 30, 2005. The increase is due to the fact that there were 219 voyage days in the three month period ended June 30, 2006, whereas there were no voyage days during the three month period ended June 30, 2005. Voyage expenses include port, canal and fuel charges for which the ship owner is responsible on a voyage charter but not when a vessel is on either a time or bareboat charter. In addition, voyage expenses include brokerage commissions on time-charters and other commercial overhead. Vessel operating Expenses Vessel operating expenses for the quarter ended June 30, 2006 increased $2.5 million or 42% as compared to the comparable period in 2005. This increase is the result of the increase in number of vessels comprising the Company's fleet, as described above. However, the vessels continue to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. operating expenses during offhire periods. Additionally, the vessels acquired since the second quarter of 2005 are on average larger and more complex and therefore more expensive to operate than the former fleet. Vessel depreciation Vessel depreciation for the quarter ended June 30, 2006 increased $0.9 million over the quarter ended June 30, 2005. This increase is due to the acquisitions made, as discussed above. Consulting and professional fees and other expenses Consulting and professional fees and other expenses increased $0.2 million from the three months ended June 30, 2005 to the three months ended June 30, 2006. Approximately $0.1 million of the increase relates to consulting fees and the balance is dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. amongst several categories including legal fees, administrative fees, directors and officers insurance and public relations. Interest expense and interest income The $1.1 million (72%) increase in interest expense for the quarter ended June 30, 2006, as compared to the same period in 2005, is due to the increase in debt for the acquisition of two vessels in the third and fourth quarters of 2005 and the acquisition of a combination carrier in 2006. The outstanding debt increased $49.2 million from June 30, 2005 to June 30, 2006. In addition, the average daily interest rate for the three months ended June 30, 2006 was 5.07% versus an average daily rate of 3.11% for the three month period ended June 30, 2005. The increase in interest income of $0.4 million is also due to the increase in interest rates. Equity in income of Nordan OBO II Equity in income of Nordan OBO II of $0.3 million represents income from the Company's 50% interest in an entity which is the disponent owner of a 1992-built 75,000 DWT combination carrier through a bareboat charter party. Gain on fair value of interest rate swaps The Company entered into two interest rate swaps during 2005 which are required to be marked to market through the statement of income. The net increase in the value of these swaps from December 31, 2005 to March 31, 2006 was $0.9 million and the net increase in the value of these swaps from March 31, 2006 to June 30, 2006 was $0.5 million. Liquidity and Capital Resources Cash at June 30, 2006, amounted to $39.9 million, a decrease of $20.9 million as compared to December 31, 2005. The decrease in the cash balance is attributable to outflows for investing activities of $29.2 million and outflows for financing activities of $14.5 million. This was offset by cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $22.8 million. The outflow for investing activities is attributable to the purchase and investment in vessels of $17.2 million and the net investment in Nordan OBO II of $12.1 million. This was offset by an increase in the fair value of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $0.2 million. The outflow for financing activities is primarily attributable to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $12.3 million, the purchase of treasury stock of $2.1 million and payments for common stock issuance costs of $0.1 million. The Company intends to continue its vessel acquisition program to expand its presence in its two current sectors of the tanker market: combination carriers capable of transporting both wet and dry bulk cargoes That which is generally shipped in volume where the transportation conveyance is the only external container; such as liquids, ore, or grain. , and product carriers; however, there can be no assurance that the Company will be able to purchase any of such vessels on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms or at all. The Company's fleet currently consists of six medium range product tankers, six combination carriers and a 50% interest in another and two panamax product carriers. Twelve of the vessels are currently fixed on long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. time charters, which varied in original length of between one and five years. One of the remaining three vessels is presently being converted to a double-hull MR tanker, another is undergoing a special survey and the third is being operated in the spot market at this time. We provide EBITDA (earnings before interest expense, taxes, depreciation and amortization) information as a guide to the operating performance of the Company. EBITDA, which is not a term recognized under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , is calculated as net income plus interest expense, income taxes (benefit), depreciation and amortization, and an adjustment for book value gains and losses on the sale of vessels. Included in the depreciation and amortization for the purpose of calculating EBITDA is depreciation of vessels, including capital improvements and amortization of mortgage fees. EBITDA, as calculated by the Company, may not be comparable to calculations of similarly titled items reported by other companies. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain statements contained in this press release, including, without limitation, statements containing the words "believes," "anticipates," "expects," "intends," and words of similar import, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases, regarding the Company's financial and business prospects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, but are not limited to, those set forth in the Company's Annual Report and filings with the Securities and Exchange Committee. Given these uncertainties, undue reliance should not be placed on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any of the forward-looking statements contained or incorporation by reference The method of making one document of any kind become a part of another separate document by alluding to the former in the latter and declaring that the former shall be taken and considered as a part of the latter the same as if it were completely set out therein. herein to reflect future events or developments. For further information, including previous announcements, access the Company's website: www.bhocean.com.
B+H Ocean Carriers Ltd.
Unaudited Consolidated Balance Sheets
----------------------------------------------------------------------
Unaudited Audited Unaudited
ASSETS June 30, 2006 December 31, June 30, 2005
2005
------------- ------------- -------------
CURRENT ASSETS:
Cash and cash
equivalents $ 39,953,172 $ 60,827,651 $ 62,970,459
Marketable securities 353,518 567,566 207,941
Trade accounts
receivable, less
allowance for doubtful
accounts of $229,000 at
June 30, 2006 and
December 31, 2005 and
$137,000 at June 30,
2005 1,686,898 2,258,572 500,108
Cash on deposit for
vessel acquisition - - 3,325,000
Inventories 2,449,443 855,086 453,920
Prepaid expenses and
other current assets 1,326,567 1,210,915 1,159,963
------------ ------------ ------------
Total current assets 45,769,598 65,719,790 68,617,391
------------ ------------ ------------
Vessels, at cost:
Vessels 301,998,582 249,067,385 206,923,330
Less - Accumulated
depreciation (42,432,792) (34,900,653) (36,818,471)
------------ ------------ ------------
259,565,790 214,166,732 170,104,859
------------ ------------ ------------
Investment in Nordan OBO
II Ltd 12,182,945 - -
Other assets 1,435,272 1,536,764 1,362,785
Fair value of derivative
asset 1,442,499 - -
Total assets $320,396,104 $281,423,286 $240,085,035
------------ ------------ ------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,739,908 $ 4,025,919 $ 3,635,941
Accrued liabilities 6,152,147 1,747,909 1,911,898
Accrued interest 436,690 454,620 468,935
Current portion of
mortgage payable 31,691,000 32,602,000 29,650,000
Deferred income 3,541,726 2,727,416 3,033,811
Other liabilities 158,058 59,836 312,470
------------ ------------ ------------
Total current
liabilities 46,719,529 41,617,700 39,013,055
Deferred income - long
term charters 3,629,000 2,688,000 -
Unsecured debt 36,105,622 - -
Long term debt 102,325,360 117,063,472 91,315,472
Commitments and
contingencies - - -
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01
par value; 20,000,000
shares authorized; no
shares issued and
outstanding - - -
Common stock, $0.01 par
value; 30,000,000
shares authorized;
7,557,268 shares
issued, 7,087,785,
7081,920 and 3,908,847
shares outstanding as
of March 31, 2006,
December 31, 2005 and
March 31, 2005,
respectively 75,572 75,572 75,572
Paid-in capital 93,962,034 94,042,310 94,336,805
Retained earnings 43,596,864 29,905,939 18,308,057
Treasury stock (6,017,877) (3,969,707) (2,963,926)
------------ ------------ ------------
Total shareholders'
equity 131,616,593 120,054,114 109,756,508
------------ ------------ ------------
Total liabilities and
shareholders' equity $320,396,104 $281,423,286 $240,085,035
------------ ------------ ------------
B+H Ocean Carriers Ltd.
Unaudited Consolidated Statements of Income
----------------------------------------------------------------------
For the For the For the For the
six six three three
months months months months
ended ended ended ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues:
Voyage, time and
bareboat charter
revenues $45,055,406 $32,956,689 $23,427,676 $19,114,679
Other revenue 1,081,596 16,474 $ 194,921 -
----------- ----------- ----------- -----------
Total revenues 46,137,002 32,973,163 23,622,597 19,114,679
Operating
expenses:
Voyage expenses 5,416,617 3,435,928 3,752,995 1,191,931
Vessel operating
expenses,
drydocking and
survey costs 15,337,398 11,959,297 8,602,127 6,069,116
Vessel
depreciation 7,532,139 5,209,961 3,940,427 3,022,206
Amortization of
deferred charges 164,215 101,051 82,306 68,164
General and
administrative:
Management fees
to related
party 533,482 374,488 270,741 199,010
Consulting and
professional
fees, and
other expenses 2,044,744 1,466,825 973,576 795,759
----------- ----------- ----------- -----------
Total operating
expenses 31,028,595 22,547,550 17,622,172 11,346,186
----------- ----------- ----------- -----------
Income from vessel
operations 15,108,407 10,425,613 6,000,425 7,768,493
----------- ----------- ----------- -----------
Other income
(expense):
Equity in income
of Nordan OBO II 753,302 - 321,492 -
Interest expense (4,695,244) (2,157,334) (2,572,083) (1,493,349)
Interest income 1,091,344 222,813 585,639 200,272
Gain on trading
marketable
securities (9,383) 9,671 (134,959) 6,943
Gain on fair value
of interest rate
swap 1,442,499 - 559,470 -
----------- ----------- ----------- -----------
Total other
expenses, net (1,417,482) (1,924,850) (1,240,441) (1,286,134)
----------- ----------- ----------- -----------
Net income $13,690,925 $ 8,500,763 $ 4,759,984 $ 6,482,359
----------- ----------- ----------- -----------
Basic earnings per
common share $ 1.93 $ 1.88 $ 0.67 $ 1.25
----------- ----------- ----------- -----------
Diluted earnings
per common share $ 1.87 $ 1.78 $ 0.65 $ 1.19
----------- ----------- ----------- -----------
Weighted average
number of common
shares
outstanding:
Basic 7,082,781 4,523,317 7,066,317 5,191,888
----------- ----------- ----------- -----------
Diluted 7,304,323 4,784,193 7,287,748 5,428,346
----------- ----------- ----------- -----------
B+H Ocean Carriers Ltd.
Unaudited Consolidated Statements of Cash Flows
----------------------------------------------------------------------
For the six For the six
months ended months ended
June 30, 2006 June 30, 2005
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $13,690,925 $8,500,763
Adjustments to reconcile net income to
net cash provided by operating
activities:
Vessel depreciation 7,532,139 5,209,961
Amortization of deferred charges 164,215 101,051
Loss (gain) on fair value of
marketable securities 9,383 (9,671)
Gain on fair value of interest rate
swaps (1,442,499) -
Changes in assets and liabilities:
Decrease in trade accounts
receivable 571,674 5,045,397
(Increase) decrease in inventories (1,594,357) 316,461
Increase in prepaid expenses and
other assets (115,652) (393,136)
Increase (decrease) in accounts
payable 713,989 (1,695,087)
Increase (decrease) in accrued
liabilities 4,404,238 (386,926)
(Decrease) increase in accrued
interest (17,930) 201,093
Increase in deferred income 1,755,310 1,734,397
Increase in other liabilities 98,222 236,384
Payments for special surveys (2,974,409) (2,017,837)
------------- -------------
Total adjustments 9,104,323 8,342,087
------------- -------------
Net cash provided by operating activities 22,795,248 16,842,850
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase and investment in vessels (17,194,165) (110,200,000)
Investment in Nordan OBO II (13,932,945)
Dividend received from Nordan OBO II 1,750,000 -
Cash on deposit for vessel
acquisition - (3,325,000)
Increase in marketable securities 204,664 -
------------- -------------
Net cash used in investing activities (29,172,446) (113,525,000)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for debt issuance costs (65,345) (1,002,521)
Mortgage proceeds - 102,000,000
Purchase of treasury stock (2,073,836)
Issuance of treasury shares 75,410 61,540
Issuance of common stock, net of
issuance costs (130,020) 56,830,568
Payments of long-term debt (12,303,490) (10,300,000)
------------- -------------
Net cash provided by financing activities (14,497,281) 147,589,587
------------- -------------
Net decrease in cash and cash equivalents (20,874,479) 50,907,437
Cash and cash equivalents, beginning of
period 60,827,651 12,063,022
------------- -------------
Cash and cash equivalents, end of period $39,953,172 $62,970,459
------------- -------------
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