Looks to me like in 2009 and 2010 they bought a bunch of boats and got bank loans to pay for them. Last year they bought some boats and didn't (couldn't?) get a loan:
| Net cash provided by operating activities | 58,296,117 | 94,339,830 | 90,524,861 | | Cash flows from investing activities: |
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| | Vessels and vessel improvements and Advances for vessel construction | (179,105,635) | (301,795,862) | (228,530,198) | | Purchase of other fixed assets | (356,631) | (255,713) | (94,065) | | Proceeds from sale of vessel | 22,511,226 | 21,055,784 | -- | | Investment | (955,093) | -- | -- | | Changes in restricted cash | 119,923 | -- | -- |
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| | Net cash used in investing activities | (157,786,210) | (280,995,791) | (228,624,263) | | Cash flows from financing activities |
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| | Issuance of common stock | -- | -- | 99,999,997 | | Equity issuance costs | -- | -- | (2,708,951) | | Bank borrowings | -- | 251,183,596 | 159,215,000 | | Repayment of debt | (21,875,735) | -- | (48,645,523) | | Changes in restricted cash | 19,000,000 | (6,014,285) | (2,000,000) | | Deferred financing costs | -- | -- | (4,515,623) | | Cash used to settle net share equity awards | (1,680,649) | (736,443) | (1,109,587) |
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| | Net cash provided by (used in) financing activities | (4,556,384) | 244,432,868 | 200,235,313 | | Net increase/(decrease) in Cash | (104,046,477) | 57,776,907 | 62,135,911 | | Cash at beginning of period | 129,121,680 | 71,344,773 | 9,208,862 |
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| | Cash at end of period | $25,075,203 | $129,121,680 | $71,344,773 |
Pretty good leverage - $1.8B worth of boats on a $100M market cap. The questions in my mind are whether the boats are being depreciated at an adequate rate, and how much is a boat worth should a charter get cancelled or the charterers start demanding a lower rate, while the banks keep expecting the boat payments to keep rolling in - you are familiar with that scenario, no?<g> |
