To supplement our financial information presented in accordance with the United States generally accepted accounting principles ("U.S. GAAP"), we may use certain "non-GAAP financial measures" as such term is defined in Regulation G promulgated by the SEC. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in, or excluded from, the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We believe non-GAAP financial measures provide investors with greater transparency and supplemental data relating to our financial condition and results of operations and, therefore, a more complete understanding of our business and financial performance than the comparable U.S. GAAP measures alone. However, non-GAAP financial measures should only be used in addition to, and not as substitutes for, the financial results presented in accordance with U.S. GAAP. Although we believe the following definitions and calculation methods are consistent with industry standards, our non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies.

Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA"). EBITDA is a financial measure we calculate by deducting interest and finance costs, interest income, taxes, depreciation and amortization, from net income. EBITDA assists our management by carving out the effects that non-operating expenses and non-cash items have on our financial results. We believe this also enhances the comparability of our operating performance between periods and against companies that may have varying capital structures, other depreciation and amortization policies, or that may be subject to different tax regulations. The following table reconciles EBITDA to the most directly comparable U.S. GAAP financial measure:

 
                                               Nine-month period ended 
                                                         September 30, 
                                           --------------------------- 
                                               2024           2023 
(in thousands of U.S. dollars)              (unaudited)    (unaudited) 
Net income                                $         562  $         752 
Plus: Depreciation expense                          547            508 
Plus: Amortization of deferred 
 drydocking costs                                   380            267 
Plus: Interest and finance costs                     61              2 
Less: Interest income                              (58)           (45) 
EBITDA                                    $       1,492  $       1,484 
                                           ------------   ------------ 
 
 

Time Charter Equivalent ("TCE"). TCE is a measure of revenue generated over a period that accounts for the effect of the different charter types under which our vessels may be employed. TCE is calculated by deducting voyage expenses from revenue and making any other adjustments that may be required to approximate the revenue that would have been generated, had the vessels been employed under time charters. TCE is typically expressed on a daily basis ("Daily TCE") by dividing it by Operating Days, to eliminate the effect of changes in fleet composition between periods. The following table reconciles TCE and Daily TCE to the most directly comparable U.S. GAAP financial measure:

 
                                               Nine-month period ended 
                                                         September 30, 
                                           --------------------------- 
(in thousands of U.S. dollars, except 
fleet operational data and daily               2024           2023 
figures)                                    (unaudited)    (unaudited) 
Revenue, net                              $       3,582  $       3,248 
Less: Voyage expenses                             (257)          (119) 
                                           ------------   ------------ 
TCE                                       $       3,325  $       3,129 
Divided by: Operating Days                        250.8          273.0 
                                           ------------   ------------ 
Daily TCE                                 $      13,258  $      11,462 
                                           ------------   ------------ 
 
 

Daily Vessel Operating Expenses ("Daily OPEX"). Daily OPEX, is a measure of the vessel operating expenses incurred over a period divided by Ownership Days, to eliminate the effect of changes in fleet composition between periods. The following table reconciles Daily OPEX to vessel operating expenses:

 
                                               Nine-month period ended 
                                                         September 30, 
                                           --------------------------- 
(in thousands of U.S. dollars, except 
fleet operational data and daily               2024           2023 
figures)                                    (unaudited)    (unaudited) 
Vessel operating expenses                 $       1,427  $       1,402 
Divided by: Ownership Days                        281.8          273.0 
                                           ------------   ------------ 
Daily OPEX                                $       5,064  $       5,136 
                                           ------------   ------------ 
 
 

Other Definitions and Methodologies

This press release refers to the terms and methodologies described below. Although we believe the following definitions and calculation methods are consistent with industry standards, these measures may not be directly comparable to similarly titled measures of other companies.

Ownership Days. Ownership Days are the total days we owned our vessels during the relevant period. We use this to measure the size of our fleet over a period.

Available Days. Available Days are the Ownership Days, less any days during which our vessels were unable to be used for their intended purpose as a result of scheduled maintenance, upgrades, modifications, drydockings, special or intermediate surveys, or due to change of ownership logistics, including positioning for and repositioning from such events. We use this to measure the number of days in a period during which our vessels should be capable of generating revenues.

Operating Days. Operating Days are the Available Days, less any days during which our vessels were unable to be used for their intended purpose as a result of unforeseen events and circumstances. We use this to measure the number of days in a period during which our vessels actually generated revenues.

Vessel Utilization. Vessel Utilization is the ratio of Operating Days to Available Days.

Average Number of Vessels. Average Number of Vessels is the ratio of Ownership Days to calendar days in a period.

Minimum contracted revenue. The amount of minimum contracted revenue is estimated by reference to the contracted period and hire rate, net of charterers' commissions but before reduction for brokerage commissions and assuming no unforeseen off-hire days. For index-linked contracts, minimum contracted revenue is estimated by reference to the average of the relevant index during the 15 days preceding the calculation date.

(1) EBITDA is a non-GAAP financial measure. For the definitions of non-GAAP financial measures and their reconciliation to the most directly comparable financial measures calculated and presented in accordance with the United States generally accepted accounting principles, please refer to "Exhibit I--Non-GAAP Financial Measures Definitions and Reconciliation to GAAP."

(2) EBITDA, Daily TCE, and Daily OPEX, are non-GAAP financial measures. For the definitions of non-GAAP financial measures and their reconciliation to the most directly comparable financial measures calculated and presented in accordance with the United States generally accepted accounting principles, please refer to "Exhibit I--Non-GAAP Financial Measures Definitions and Reconciliation to GAAP."

(3) For the definitions of fleet operational measures please refer to "Exhibit I--Other Definitions and Methodologies."

(4) For the contracted revenue calculation methodology please refer to "Exhibit I--Other Definitions and Methodologies."

(5) Balance sheet data derives from the audited consolidated financial statements as of that date

(END) Dow Jones Newswires

November 11, 2024 08:00 ET (13:00 GMT)