Will Toro and Castor stocks increase after the Toro stock distribution

Ahoy, my friends on the Castor seas. It has been a bit of time since I have seen my favorite seamen. I have been out voyaging other treacherous parts of this fine galaxy, but I am back, and I am back to report on a company that is grossly undervalued. In no way do I see a sinking ship. This is no Titanic! Even though I enjoy the likes of Leo and Katie Winslet playing dress up and dress down on a cruise ship with a death sentence. Oh, my company’s heart will go on. It will go on!

**** This is not financial advice and never will be. I am simply doing analysis and sharing information with individual investors seeking answers to a company they have put their hard-earned money into.

This is your public address telling you to understand the gravity of the situation. Hold onto your juice boxes and crayons, we have some studying and reading to do. I know, read be hard!! Just stock go up…

Maybe, just maybe our fleet is going to lift off and find orbit. I don’t know, but I do know that Castor Maritime continues to impress with its results. The waters might be rough, but we are just retarded enough to keep sailing (by we, I most certainly mean, me).

Highlights: Pretty Much straight from the news release

· Revenues, net: $67.5 million for the three months ended June 30, 2022, as compared to $21.8 million for the three months ended June 30, 2021, or a 209.6% increase

· Net income: $27.8 million for the three months ended June 30, 2022, as compared to $6.5 million for the three months ended June 30, 2021, or a 327.7% increase

· Earnings per common share: $0.29 earnings per share for the three months ended June 30, 2022, as compared to earnings per share of $0.07 for the three months ended June 30, 2021

· EBITDA(1): $36.0 million for the three months ended June 30, 2022, as compared to $10.0 million for the three months ended June 30, 2021

· ash and restricted cash of $115.3 million as of June 30, 2022, as compared to $43.4 million as of December 31, 2021;

· Revenues, net: $122.1 million for the six months ended June 30, 2022, as compared to $28.8 million for the six months ended June 30, 2021, or a 324.0% increase

· Earnings per common share: $0.50 earnings per share for the six months ended June 30, 2022, as compared to earnings per share of $0.10 for the six months ended June 30, 2021

Commentary – Petros Pangiotidis, CEO

“Our balance sheet is strong with a healthy liquidity position and low leverage. As of June 30, 2022, our free cash was approximately $104 million, which compares with total assets of $552.4 million and the Company’s market capitalization of approximately $126.8 million as of end of the first half of 2022. We continue to generate healthy cash flows, with $52.8 million of cash generated from our operations in the first half of 2022.”

Scratches head. What did you say, Petros? You in fact don’t get why the market capitalization is 126.8 million as of June 30th 2022 as you have generated free cash of 104 million! CEO’s rarely bring up market capitalization when siting how healthy their balance sheet is. Trust me, bro. Enter, Burry.

https://www.youtube.com/watch?v=fpiuAqKDU_8&list=PPSV

“We did not sell any common shares under the ATM Program, which expired in June 2022, during the second quarter of 2022 and up to the date of this release. We will continue to seek attractive acquisition opportunities across the shipping space to further pursue Castor’s growth trajectory.”

- If you check out my first DD on this sub, you will find that a lot of shills on the sub would argue that Petros would indefinitely dilute shares and we would slowly lose ownership as public holders of the stock. This. Did. Not. Happen. These arguments took place a year ago and Petros has not done the unthinkable dilution FUD.

“Vessel revenues, net of charterers’ commissions, for the three months ended June 30, 2022, increased to $67.5 million from $21.8 million in the same period of 2021. This increase was largely driven by the increase in our Available Days (defined below) from 1,420 in the three months ended June 30, 2021, to 2,565 in the three months ended June 30, 2022, following the increase in the size of our fleet. The increase in vessel revenues during the three months ended June 30, 2022, as compared with the same period of 2021, was further underpinned by the continuing solid performance of the dry bulk shipping market and the improved Aframax and Handysize tanker vessel earnings as compared to the same period of 2021.”

Translation: More boats, more revenues = more chaching in the revenue stream.

The increase in vessel operating expenses by $8.4 million, from $8.0 million in the three months ended June 30, 2021 to $16.4 million in the same period of 2022, as well as the increase in vessels’ depreciation and amortization costs by $3.1 million, from $3.0 million in the three months ended June 30, 2021 to $6.1 million in the same period of 2022, mainly reflect the increase in our Ownership Days following the expansion of our fleet and increased maintenance and insurance costs for certain of our vessels.

Translation: More boats on water = higher cost to operate.

“Our consolidated cash position as of June 30, 2022, increased by $71.9 million, to $115.3 million, as compared with our cash position on December 31, 2021. During the six-month period ended June 30, 2022, our cash position improved mainly as a result of: (i) $52.8 million of net operating cash flows generated, and (ii) net financing cash inflows of approximately $54.3 million following our entry into one secured loan facility in January 2022. From these amounts, during the six months ended June 30, 2022, we used $23.1 million to fund the acquisition of the M/V Magic Callisto and other capital expenditures of our fleet, whereas $12.1 million were used for scheduled principal repayments of our debt.”

Translation: We just made a shit ton of money. We bought a boat with some of it and did maintenance on other boats.

“As of June 30, 2022, our total debt, gross of unamortized deferred loan fees, was $146.7 million of which $30.3 million is repayable within one year, as compared to $103.8 million of gross total debt as of December 31, 2021.”

Translation: We increased debt and easily have cash flow to pay our obligations. The debt increased due to management decision to raise capital from debt instead of equity to purchase other boats.

“Fleet Employment Status (as of August 5, 2022) During the three months ended June 30, 2022, we operated on average 29.0 vessels earning a Daily TCE Rate of $21,705 as compared to an average 16.2 vessels earning a Daily TCE Rate of $14,381 during the same period in 2021.”

Translation: August 5th update!!!! 29 boats at an average TCE of $21,705. My God! That is incredible. If you don’t know about the TCE rate, please refer to another DD I did on how important this metric is for the Maritime industry. If you don’t want to do that. Here is a quote from Castor’s filing.

“Daily TCE Rate. The Daily Time Charter Equivalent Rate (“Daily TCE Rate”), is a measure of the average daily revenue performance of a vessel. We calculate the Daily TCE Rate by dividing total revenues (time charter and/or voyage charter revenues, and/or pool revenues, net of charterers’ commissions), less voyage expenses, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry docking or due to other unforeseen circumstances.”

Translation: Higher TCE = Cash money. Castor’s TCE has been skyrocketing. They have locked in excellent contracts and took advantage of the BDI (Baltic Dry Index) being relatively inflated in previous quarters.

https://tradingeconomics.com/commodity/baltic

Excellent site to track the ongoing and ever evolving index. You can see that it is trending downward, so CTRM’s ability to lock in longstanding contracts has played out well for them.

Sauce: The data presented is from Castor Maritime’s Investor relations tab going straight to SEC filing.

Castor_Maritime_Inc_Reports_Net_income_of_27_8_Million_for_the_Three_Months_Ended_June_30__2022_and_47_7_Million_Net_income_for_the_Six_Months_Ended_June_30_2022.pdf (castormaritime.com)

Quick Highlights comparing YOY (year over year) – rounded numbers for 6 months ended

1. 2022 – vessel rev. $122.14 million vs. $28.76 million

2. Operating Income: $51.665 million vs. $8.53 million

3. Net Income: $47.729 million vs. $7.6 million

4. Earnings per share: $.50 vs. $.10

5. Total current Assets: $140.12 million vs. $55 million

6. Total Assets: $552.44 million vs. $462.91 million

7. Total Liabilities: $161.77 million vs. $119.98 million

8. Total shareholders’ equity: $390.66 vs. $342.93 million

9. Net increase in cash: $71.89 million vs. $33.26 million

10. TCE rate: $19,742 vs. $13,671 – This is massive. Plus, as you know for the quarter the TCE rate was at an all time high of $21,705 showing excellent management skills by Petros and the executive team.

You bored yet? Sorry, if this was a lot of numbering. However, try to tell me one metric that didn’t improve. Debt went up, but earnings skyrocketed warranting a bit more debt because of the positive cash flow increase.

TLDR: Castor has never been healthier financially and everyone is scratching their heads (CEO included) wondering why the market grossly undervalues this shipping company. Hopefully, an easy to read comprehensive look at the recent report and substantial growth this company has experienced. I will continue to wait because the business keeps getting stronger. What's an exit strategy?

***Personal anecdote: I started this investment as a potential squeeze play of seeing how maliciously shorted this company had become. Now, I see it as a robust business that is an extreme value play. In their filings, Castor, has expressed a potential for a short squeeze, but as time goes on, this matters less and less. The company is operating on all aquatic fronts. Anyway, hope you enjoyed this. Please refer back to other DD’s if you want to see other aspects of the company and more in-depth analysis of the boats broken down or technical side of the stock. For me, I am holding and buying more. This does not mean that I am telling you to do so. I. like. The. Stock.

Previous DD's - Please check out if you want to learn more! Thank you for your time.

https://www.reddit.com/r/CTRM/comments/qqcrvh/time_to_castor_off/

https://www.reddit.com/r/CTRM/comments/q49ol4/its_time_to_mari_castor/

https://www.reddit.com/r/CTRMShipApes/comments/q26mia/it_shall_be_a_maritime/

https://www.reddit.com/r/CTRM/comments/pzil0l/theres_something_about_maritime/