LIMASSOL, Cyprus, May 10, 2024 (GLOBE NEWSWIRE) -- Toro Corp. (NASDAQ:TORO), ("Toro", or the "Company"), an international energy transportation services company, today announced its results for the three months ended March 31, 2024. Highlights of the First quarter Ended March 31, 2024: Total vessel revenues: $7.0 million, as compared to $31.2 million for the three months ended March 31, 2023, or a 77.6% decrease; Net income: $22.1 million, as compared to $22.0 million for the three months ended March 31, 2023, or a 0.5% increase; Earnings per common share, basic: $1.11 per share, as compared to $2.29 per share for the three months ended March 31, 2023; EBITDA(1): $21.4 million, as compared to $24.1 million for the three months ended March 31, 2023; Cash and restricted cash of $186.4 million as of March 31, 2024, as compared to $155.6 million as of December 31, 2023; Delivery of the M/T Wonder Sirius to its new owners on January 24, 2024, after entering into an agreement to sell the vessel on January 8, 2024 for $33.8 million, resulting in a capital gain of $19.6 million; and Repurchased an additional 644,556 common shares at an aggregate cost of $3.7 million under the Company's share repurchase program, which was approved on November 6, 2023 and expired on March 31, 2024. (1) EBITDA is not a recognized measure under United States generally accepted accounting principles ("U.S. GAAP"). Please refer to Appendix B for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Management Commentary: Mr. Petros Panagiotidis, Chief Executive Officer of the Company, commented: "During the first quarter of 2024 we mostly operated an LPG carrier fleet, having successfully completed the sale of a substantial number of our tanker vessels at significant capital gains over the past twelve months. "We also completed our share repurchase program on March 31, 2024, having bought back an additional 644,556 common shares during the first quarter of 2024. This brought the total number of shares repurchased under the program to 867,156 common shares. "We enjoy a strong balance sheet with significant cash balances and currently without any debt following the repayment in January 2024 of our only outstanding loan facility. Looking ahead, we continue to seek opportunities to enhance our growth." Earnings Commentary: First quarter ended March 31, 2024, and 2023 Results Total vessel revenues, net of charterers' commissions, decreased to $7.0 million in the three months ended March 31, 2024, from $31.2 million in the same period in 2023. This decrease of $24.2 million was mainly associated with the reduction in the Available Days of the Aframax/LR2 vessels in our fleet to 24 days in the three months ended March 31, 2024, from 540 days in the same period in 2023, due to the sale of five of our six Aframax/LR2 vessels in 2023 and of the M/T Wonder Sirius on January 24, 2024, and (ii) decrease of the Daily TCE Rate to $13,593 in the three months ended March 31, 2024, from $ 45,252 in the same period in 2023, mainly due to the change in the mix of our fleet following the addition of the LPG vessels which earn a lower Daily TCE Rate than the Handysize and Aframax/LR2 tanker vessels due to their size and the trade they operate in. Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Voyage expenses for our fleet amounted to $0.5 million in the three months ended March 31, 2024, unchanged versus the same period in 2023. The decrease in Vessel operating expenses by $2.5 million to $2.6 million in the three months ended March 31, 2024, from $5.1 million in the same period in 2023, mainly reflects the decrease (i) in the daily vessel operating expenses of the vessels in our fleet to $5,340 in the three months ended March 31, 2024 from $7,106 in the same period in 2023, mainly due to the change in the mix of our fleet following the addition of the LPG vessels which incur lower daily vessel operating expenses than the Handysize and Aframax/LR2 tanker vessels due to their size and (ii) in the Ownership Days of our fleet to 479 days in the three months ended March 31, 2024 from 720 days in the same period in 2023 due to the decrease of the average number of operating vessels to 5.3 vessels in the three months ended March 31, 2024 from 8.0 vessels in the same period of 2023. Depreciation expenses for our fleet decreased to $1.1 million in the three months ended March 31, 2024, from $1.6 million in the same period in 2023 as a result of the decrease in the Ownership Days of our fleet. Dry-dock and special survey amortization charges amounted to $0.1 million for the three months ended March 31, 2024, compared to a charge of $0.5 million in the three months ended March 31, 2023. This decrease in dry-dock amortization charges primarily resulted from the decrease in dry-dock amortization days from 289 days in the three months ended March 31, 2023 to 99 dry-dock amortization days in the three months ended March 31, 2024. General and administrative expenses in the three months ended March 31, 2024, amounted to $2.3 million, whereas, in the same period of 2023, general and administrative expenses totaled $1.0 million. This increase is mainly associated with the stock based compensation cost for non-vested shares granted under our Equity Incentive Plan amounting to $1.2 million. For the period from January 1 through March 7, 2023, the date upon which we completed the spin-off of our former tanker vessel business (the "Spin-Off"), general and administrative expenses reflect the expense allocations made to the Company by Castor Maritime Inc. ("Castor") based on the proportion of the number of Ownership Days of our fleet vessels to the total Ownership Days of Castor's full fleet. Management fees decreased to $0.5 million in the three months ended March 31, 2024, from $0.7 million in the same period in 2023 as a result of the decrease in the Ownership Days of our fleet, partly offset by the increased management fees with effect from July 1, 2023, from $975 per vessel per day to $1,039 per vessel per day, which were adjusted under the terms of the amended and restated master management agreement between the Company, the Company's shipowning subsidiaries and Castor Ships S.A., effective from July 1, 2022. Interest and finance costs, net, amounted to $(2.0) million in the three months ended March 31, 2024, whereas, in the same period of 2023, interest and finance costs, net amounted to $(0.1) million. This variation is mainly due to higher cash balances compared to the same period of 2023 and the increase in interest income for the three months ended March 31, 2024 on our available cash, which more than offsets the increase in the weighted average interest rate charged on our long-term debt, consisting of the $18.0 million senior secured credit facility that was repaid in January 2024, from 7.8% in the three months ended March 31, 2023 to 8.6% in the same period of 2024. Recent Financial Developments Commentary: Equity update On April 15, 2024, the Company paid to Castor a dividend amounting to $0.3 million on its 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares (the "Series A Preferred Shares") for the period from January 15, 2024 to April 14, 2024. Under the Company's $5.0 million share repurchase program which expired on March 31, 2024, during the period from April 1, 2024 to May 9, 2024, the Company cancelled the remaining 644,556 treasury shares which were outstanding as of March 31, 2024. As of May 9, 2024, we had 18,333,853 common shares issued and outstanding. Liquidity/ Financing/ Cash flow update Our consolidated cash position (including our restricted cash) increased by $30.8 million, from $155.6 million as of December 31, 2023, to $186.4 million as of March 31, 2024. During the three months ended March 31, 2024, our cash position increased mainly as a result of (i) $7.7 million of net operating cash flows provided, (ii) $32.4 million of net investing cash flows provided, including $32.5 million of net proceeds from the sale of the M/T Wonder Sirius, partially offset by payment of vessel improvements and (iii) $9.3 million of net financing cash flows used, including $5.3 million for the early repayment on our debt due to sale of the M/T Wonder Sirius, $3.7 million for the payment for repurchase of common shares and $0.3 million for the payment of dividends to Castor on our Series A Preferred Shares for the period from October 15, 2023 to January 14, 2024. Recent Business Developments Commentary: On January 8, 2024, we entered into an agreement with an unaffiliated third party for the sale of the M/T Wonder Sirius at a price of $33.8 million. The vessel was delivered to its new owner on January 24, 2024. In connection with this sale, the Company recognized a gain of $19.6 million during the first quarter of 2024. We used part of the proceeds of the sale of the M/T Wonder Sirius to fully repay the remaining outstanding balance of $5.3 million under our only outstanding loan facility, the $18.0 million senior secured credit facility under which the M/T Wonder Sirius served as security. As a result, we have no outstanding indebtedness under any facility as of May 9, 2024. Fleet Employment Status (as of May 9, 2024): During the three months ended March 31, 2024, we operated on average 5.3 vessels earning a Daily TCE Rate(1) of $13,593 as compared to an average of 8.0 vessels earning a Daily TCE Rate(1) of $45,252 during the same period in 2023. Our employment profile as of May 9, 2024 is presented immediately below. (1)    Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Handysize Tankers Vessel Name Type DWT YearBuilt Country of Construction Type of Employment Gross Charter Rate Estimated Redelivery Date Earliest Latest Wonder Mimosa Handysize 36,718 2006 Korea Tanker Pool(1) N/A N/A N/A LPG Carriers   Type DWT YearBuilt Country of Construction Type of Employment Gross Charter Rate Estimated Redelivery Date Earliest Latest Dream Terrax LPG carrier 5,000 cbm 4,743 2020 Japan Time Charter period(2) $310,000 per month Aug-24 Aug-25 Dream Arrax LPG carrier 5,000 cbm 4,753 2015 Japan Time Charter period(3) $323,000 per month May-25 May-26 Dream Syrax LPG carrier 5,000 cbm 5,158 2015 Japan Time Charter period(4) $308,500 per month May-24 May-24 Dream Vermax LPG carrier 5,000 cbm 5,155 2015 Japan Time Charter period(5) $318,000 per month Mar-25 Mar-26 (1)    The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels.(2)    The vessel has been fixed under a time charter period contract of twelve months at $310,000 per month plus twelve months at $320,000 per month at the charterer's option.(3)    The vessel has been fixed under a time charter period contract of twelve months at $323,000 per month plus twelve months at $335,000 per month at the charterer's option.(4)    Immediately after redelivery from the current charter, estimated to take place on May 20, 2024, in accordance with the prevailing charter party terms, the vessel will be fixed under a time charter period contract of twelve months at a gross charter rate equal to $323,000 per month plus twelve months at the charterer's option. The rate for the optional period will be increased at a rate between 2% and 6% to be mutually agreed between us and the charterers.(5)    The vessel has been fixed under a time charter period contract of twelve months at $318,000 per month plus twelve months at the charterer's option at a rate to be mutually agreed by us and the charterers. Financial Results Overview: Set forth below are selected financial and operational data of our fleet for each of the three months ended March 31, 2024 and 2023, respectively:   Three Months Ended (Expressed in U.S. dollars)   March 31, 2024(unaudited)     March 31, 2023(unaudited) Total vessel revenues $ 7,005,829   $ 31,154,154 Operating income $ 19,540,185   $ 22,044,658 Net income and comprehensive income $ 22,127,359   $ 21,959,213 EBITDA(1) $ 21,364,829   $ 24,090,304 Earnings per common share, basic $ 1.11   $ 2.29 Earnings per common share, diluted $ 0.51   $ 0.35 (1)    EBITDA is not recognized measure under U.S. GAAP. Please refer to Appendix B of this release for the definition and reconciliation of this measure to Net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Consolidated Fleet Selected Financial and Operational Data: Set forth below are selected financial and operational data of our fleet for each of the three months ended March 31, 2024 and 2023, respectively, that we believe are useful in analyzing trends in our results of operations.   Three Months EndedMarch 31, (Expressed in U.S. dollars except for operational data)   2024     2023 Ownership Days(1)(7)   479     720 Available Days(2)(7)   479     677 Operating Days(3)(7)   467     673 Daily TCE Rate(4) $ 13,593   $ 45,252 Fleet Utilization(5)   98%     99% Daily vessel operating expenses(6) $ 5,340   $ 7,106 (1)    Ownership Days are the total number of calendar days in a period during which we owned a vessel. (2)    Available Days are the Ownership Days in a period less the aggregate number of days our vessels are off-hire due to scheduled repairs, dry-dockings or special or intermediate surveys.(3)    Operating Days are the Available Days in a period after subtracting unscheduled off-hire and idle days.(4)    Daily TCE Rate is not a recognized measure under U.S. GAAP. Please refer to Appendix B for the definition and reconciliation of this measure to Total vessel revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.(5)    Fleet Utilization is calculated by dividing the Operating Days during a period by the number of Available Days during that period.(6)    Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the Ownership Days for such period.(7)    Our definitions of Ownership Days, Available Days, Operating Days, Fleet Utilization may not be comparable to those reported by other companies. APPENDIX A TORO CORP.Unaudited Interim Condensed Consolidated Statements of Comprehensive Income(Expressed in U.S. Dollars—except for number of share data) (In U.S. dollars except for number of share data)   Three Months EndedMarch 31,     2024       2023   REVENUES           Time charter revenues   3,179,490       1,906,250   Voyage charter revenues   762,148       7,930   Pool revenues