Pyxis Tankers Inc. Announces Financial Results for the Three Months and Twelve Months Ended December 31, 2015

Thursday, 3 March 2016, 08:00 HKT/SGT

Maroussi, Greece, Mar 3, 2016 - (ACN Newswire) - Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), an emerging growth pure play product tanker company, today announced results for the three and twelve months ended December 31, 2015.

Highlights:

- Achieved voyage revenues of $33.2 million for the twelve months ended December 31, 2015, which resulted in net income of $3.5 million, Adjusted EBITDA of $12.1 million (see "Non-GAAP Measures and Definitions" below) and fully diluted earnings per share of $0.19.

- The Pyxis Epsilon, a 50,295 dwt eco-designed IMO2/3 product tanker, was delivered to us in January, 2015 from SPP Shipbuilding, Korea.

- Our common shares began trading under the symbol "PXS" on November 2, 2015.

Valentios Valentis, our Chairman and CEO commented:

"We are pleased to report our unaudited financial results for fiscal year 2015, our first as a public company. Our solid earnings were primarily due to the addition of our second eco-efficient medium range (MR) tanker, the Pyxis Epsilon, which increased our revenues, and to our ability to secure higher charter rates for several of our other vessels. During 2015, the percentage of voyage revenues from time charters increased to 74%, which was in line with our strategy of securing visible cash flows while also retaining upside optionality to participate in strong spot markets. As of December 31, 2015, 45% of our fleet's available operating days were booked for 2016 having an average time charter duration of six months, exclusive of options.

We have a cost-competitive operating structure which is strategically and financially important to management and our shareholders. In the quarter ended December 31, 2015, daily operating expenses per vessel for our eco-modified and eco-efficient MR tankers were $6,229 and $5,771, respectively. These operating results combined with our daily ship management fees of $750 and general and administrative expenses of $1,083 per day (excluding non-cash stock compensation), generated total daily cash operational costs of $8,062 and $7,604 for our eco-mod and eco-efficient vessels, respectively, in the fourth quarter 2015.

Managing a stable financial condition is equally important to us. Consistent with our other bank facilities, we were able to access relatively low-cost, amortizing bank debt for the delivery of the Pyxis Epsilon. This helped us grow our fleet in a disciplined way and was a testament to the strength of our sector and our lending relationships. At December 31, 2015, we had total cash of $8.6 million and total funded debt of $83.1 million, or net debt of $74.5 million. At fiscal year ended 2015, our debt had a weighted-average interest rate of 2.78%.

The spot chartering environment has come-off the highs seen in the third quarter of 2015 due to milder winter weather in the northern hemisphere, which has negatively affected demand for refined products, and to recent capacity additions within the industry. However, we are encouraged about the demand for MR tankers, especially later this year when new build deliveries of MRs dissipate. Our mixed chartering strategy, quality operations and cost-conscious platform should enable us to continue to generate attractive shareholder returns. We will continue to pursue accretive acquisitions, recognizing the cost and availability of equity capital is currently challenging. We also may pursue a sale or other long-term strategy for our small tankers."

Results for the three months ended December 31, 2014 and 2015

For the three months ended December 31, 2015, we had net income of $0.6 million, or $0.03 basic and diluted earnings per share, compared to net loss of $16.8 million, or $0.92 basic and diluted losses per share for the same period in 2014. The loss during the three months ended December 31, 2014 was a result of a non-cash impairment charge of $16.9 million for the Pyxis Malou. For the three months ended December 31, 2015, our Adjusted EBITDA (see "Non-GAAP Measures and Definitions" below) was $3.0 million, an increase of $1.0 million from $2.0 million in the same period 2014.

Results for the years ended December 31, 2014 and 2015

For the year ended December 31, 2015, our net income was $3.5 million, or $0.19 basic and diluted earnings per share, compared to net loss of $19.2 million, or $1.05 basic and diluted losses per share, for the same period in 2014. For the year ended December 31, 2015, our Adjusted EBITDA was $12.1 million, an increase of $7.0 million from $5.1 million in 2014.

Management's Discussion and Analysis of Financial Results for the Three Months ended December 31, 2015 and 2014

(Amounts are presented in U.S. $ million rounded to the nearest million, except otherwise stated)

Voyage revenues: Voyage revenues of $8.4 million for the three months ended December 31, 2015 represented an increase of $1.2 million, or 16.7%, from $7.2 million over the comparable period in 2014. The increase reflected the time charter revenue contribution of the Pyxis Epsilon, which was delivered in January 2015, as well as a higher spot charter revenue for the Pyxis Malou and higher time charter rates concluded during 2015 primarily for the Pyxis Delta.

Voyage related costs and commissions: Voyage related costs and commissions of $1.3 million for the three months ended December 31, 2015, represented a decrease of $0.9 million, or 40.9%, from $2.2 million over the comparable period in 2014. This decrease was substantially a result of a lower portion of our fleet operating under spot charters.

Vessel operating expenses: Vessel operating expenses of $3.1 million for the three months ended December 31, 2015, increased by $0.5 million, or 19.2%, from $2.6 million over the comparable period in 2014. This increase was a result of the full year's operation of the Pyxis Epsilon in 2015.

General and administrative expenses: General and administrative expenses of $0.7 million for the three months ended December 31, 2015, increased by $0.6 million, from $0.1 million over the comparable period in 2014, mainly due to the administration fees payable under the Head Management Agreement of $0.4 million, stock compensation to certain of our officers of $0.1 million and other fees and expenses associated with our being a public company.

Management fees, related parties: Management fees to related parties of $0.2 million for the three months ended December 31, 2015, remained relatively stable compared to the three month period ended December 31, 2014.

Management fees, other: Management fees to others of $0.2 million for the three months ended December 31, 2015, remained relatively stable compared to the three month period ended December 31, 2014.

Amortization of special survey costs: Amortization of special survey costs remained relatively stable compared to the three month period ended December 31, 2014.

Depreciation: Depreciation of $1.5 million for the three months ended December 31, 2015, increased by $0.1 million, or 7.1%, from $1.4 million over the comparable period in 2014. The increase was primarily due to the addition of the Pyxis Epsilon to our fleet, partially offset by the write-down of the carrying value of the Pyxis Malou in December 2014.

Vessel impairment charge: Vessel impairment charge of $16.9 million was incurred in the last quarter of 2014, due to a write-down in the carrying value for the Pyxis Malou based on our year-end analysis, available market data and standard accounting procedures. No impairment charge was recognized in the comparable period of 2015.

Interest and finance costs, net: Interest and finance costs, net for the three months ended December 31, 2015, amounted to $0.7 million, compared to $0.4 million over the comparable period in 2014, an increase of $0.3 million. The increase is mainly attributed to the drawdown of the loan in January 2015 used to finance the remaining construction cost of the Pyxis Epsilon.

Management's Discussion and Analysis of Financial Results for the Years ended December 31, 2015 and 2014

Voyage revenues: Voyage revenues of $33.2 million for the year ended December 31, 2015, represented an increase of $5.4 million, or 19.4%, from $27.8 million over 2014. The increase reflected the time charter revenue contribution of the Pyxis Epsilon which was delivered in January 2015, higher spot charter revenue for the Pyxis Malou and higher time charter rates concluded during 2015 primarily for the Pyxis Delta.

Voyage related costs and commissions: Voyage related costs and commissions of $4.7 million for the year ended December 31, 2015, represented a decrease of $5.3 million, or 53.0%, from $10.0 million over 2014. This decrease was mainly a result of a lower portion of our fleet operating under spot charters.

Vessel operating expenses: Vessel operating expenses of $13.2 million for the year ended December 31, 2015, increased by $2.1 million, or 18.9%, from $11.1 million in the prior fiscal year. The increase is attributed to operating expenses incurred for the Pyxis Epsilon, which was delivered in January 2015.

General and administrative expenses: General and administrative expenses of $1.8 million for the year ended December 31, 2015 increased by $1.7 million, from $0.1 million in the prior fiscal year, mainly due to the administration fees payable under the Head Management Agreement of $1.2 million, stock compensation to certain of our officers of $0.1 million and other fees and expenses associated with us being a public company.

Management fees, related parties: Management fees to related parties of $0.6 million for the year ended December 31, 2015, remained relatively stable compared to the prior fiscal year.

Management fees, other: Management fees to others of $1.1 million for the year ended December 31, 2015, increased by $0.2 million, or 22.2%, from $0.9 million in the prior fiscal year. The increase is attributed to management fees for the Pyxis Epsilon, which was delivered in January 2015.

Amortization of special survey costs: Amortization of special survey costs of $0.2 million for the year ended December 31, 2015, remained relatively stable compared to the prior fiscal year.

Depreciation: Depreciation of $5.7 million for the year ended December 31, 2015 increased by $0.2 million, or 3.6%, from $5.5 million in 2014. The increase was primarily due to the addition of the Pyxis Epsilon to our fleet, partially offset by the write-down of the carrying value of the Pyxis Malou in December 2014.

Vessel impairment charge: Vessel impairment charge of $16.9 million was incurred in 2014, due to a write-down in the carrying value for the Pyxis Malou based on our year-end analysis, available market data and standard accounting procedures. No impairment charge was recognized in 2015.

Other income: Other income was nil during the year ended December 31, 2014, and increased slightly to $0.1 million during the year ended December 31, 2015.

Interest and finance costs, net: Interest and finance costs, net for the year ended December 31, 2015, amounted to $2.5 million, compared to $1.7 million in 2014, reflecting an increase of $0.8 million. The increase is mainly attributed to the drawdown of the loan in January 2015 used to finance the remaining construction cost of the Pyxis Epsilon.

Press release: http://bit.ly/1ORxUww

Conference Call and Webcast

We will host a conference call to discuss our results at 4:30 pm Eastern Time on March 2, 2016. Participants should dial into the call 10 minutes prior to the scheduled time using the following dial-in numbers:

U.S. Toll Free: +1 (877) 201-0168
U.S. Toll/International: +1 (647) 788-4901
Conference ID: 60199938

A telephonic replay of the conference call will be available until the close of business on March 9, 2016 by using the following dial-in information:

U.S. Toll Free: +1 (800) 585-8367
U.S. Toll/International: +1 (404) 537-3406
Conference ID: 60199938

A live webcast of the conference call will be available through our website (http://www.pyxistankers.com). Webcast participants of the live conference call should register on the website approximately 10 minutes prior to the start of the webcast. An archived version of the webcast will be available on the website within approximately two hours of the completion of the call.

About Pyxis Tankers Inc.

We own a modern fleet of six tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. We are focused on growing our fleet of medium range product tankers, which provide operational flexibility and enhanced earnings potential due to their "eco" features and modifications. We are well positioned to opportunistically expand and maximize our fleet due to strong customer relationships, competitive cost structure and experienced management team, whose interests are aligned with those of our shareholders.

Forward Looking Statements

This press release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management team, are inherently uncertain. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws.

Company:
Pyxis Tankers Inc.
59 K. Karamanli Street
Maroussi 15125 Greece
info@pyxistankers.com

Visit our website www.pyxistankers.com

Company Contacts:
Henry Williams
Chief Financial Officer
Tel: +30 (210) 638 0200 / +1 (516) 455-0106
Email: hwilliams@pyxistankers.com

Antonios C. Backos
Senior VP for Corporate Development & General Counsel
Tel: +30 (210) 638-0180
Email: abackos@pyxistankers.com

Source: Pyxis Tankers Inc.

Topic: Earnings
Source: Pyxis Tankers Inc.
Sectors: Daily Finance, Daily News
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