EX-99.1 2 d1183692_ex99-1.htm d1183692_ex99-1.htm
 
EXHIBIT 99.1
 
 
 
INDEX TO UNAUDITED PRO FORMA SUMMARY FINANCIAL DATA
 
   
Page
  
     
Unaudited Pro Forma Condensed Consolidated Statement of Income of Seanergy Maritime Holdings Corp. and subsidiaries for the period Ended December 31, 2010
    
2
  
Unaudited Conversion of MCS Consolidated Statement of Income from IFRS to U.S. GAAP for the period from January 1, 2010 to May 20, 2010
    
4
  
 
 
SEANERGY AND SUBSIDIARIES UNAUDITED PRO FORMA FINANCIAL STATEMENTS
 
Accounting Treatment
 
The accompanying unaudited pro forma condensed consolidated statement of income gives pro forma effect to (i) Seanergy's acquisition of a 51% ownership interest in MCS, which was completed on May 20, 2010, (ii) Seanergy's acquisition of the remaining 49% ownership interest in MCS, which was completed on September 15, 2010 and was retrospectively recorded as of May 20, 2010 and (iii) Seanergy's acquisition of the remaining 50% ownership interest in BET, which was completed on October 22, 2010 and was retrospectively recorded as of May 20, 2010. The MCS acquisition was accounted for under the common control method of accounting and, accordingly, the net assets acquired have been recorded at their historical costs.
 
Basis of Accounting — The condensed consolidated statement of income has been prepared in accordance with U.S. GAAP.
 
The unaudited pro forma summary financial information is for illustrative purposes only. You should not rely on the unaudited pro forma condensed statement of income for December 31, 2010 as being indicative of the historical financial position and results of income that would have been achieved had the business combination been consummated as of January 1, 2010.
 
The unaudited pro forma condensed statement of income for the year ended December 31, 2010 has been derived from (i) the audited (historical) statement of income of Seanergy and its subsidiaries for the year ended December 31, 2010; and (ii) the unaudited statement of income of MCS for the period from January 1, 2010 to May 20, 2010 converted to U.S. GAAP from IFRS. In addition, for MCS there are certain adjustments made to the pro forma statement of income to reflect the disposals of eight vessels for the period from January 1, 2010 to May 20, 2010 that were not part of the acquisition by Seanergy.
 
While the acquisition of MCS was accounted for as a transaction under common control at historical cost by Seanergy, MCS was purchased by a major shareholder on May 1, 2010 and that acquisition was recorded at fair value.  The pro forma adjustments primarily relate to the allocation of the purchase price, including adjusting assets and liabilities to fair value with related changes in depreciation, amortization, interest and finance costs, and elimination of non-controlling interest.
 

 
1
 
 
Seanergy Maritime Holdings Corp. and subsidiaries
Unaudited Pro Forma Consolidated Statement of Income
For the period ended December 31, 2010
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
 
   
Seanergy 2010 including MCS for the period from May 21, 2010 to December 31, 2010(G1)
  
MCS for the period from January 1, 2010 to May 20, 2010(G2)
  
Disposals of 8 vessels
    
Proforma including
fair value adjustments
    
 
    
Consolidated Proforma Balances 2010
  
           
Debit
          
Credit
          
Debit
          
Credit
                    
Revenues:
                                                                  
Vessel revenue-related party     44,175                                                                        44,175   
Vessel revenue, non-related party
     54,777       26,692       5,571       (G7 )                                             75,898  
Commissions - related party
     (1,546 )                                                                     (1,546 )
Commissions , non-related party
     (1,550 )     (844 )                     147       (G7 )                                 (2,247 )
Vessel revenue, net
     95,856       25,848       5,571               147               0             0                 116,280  
                                                                                         
Expenses:
                                                                                        
Direct voyage expenses
     (2,399 )     (50 )                                                                     (2,449 )
Vessel operating expenses
     (30,667 )     (4,657 )                     2,008       (G7 )                                     (33,316 )
Voyage expenses - related party
     (434 )                                                                             (434 )
Management fees
     (316 )     (360 )                                                                     (676 )
Management fees - related party
     (2,328 )                                                                             (2,328 )
General and administration expenses
     (7,606 )     (1,415 )                     73       (G7 )                                     (8,948 )
General and administration expenses -related party
     (697 )                                                                             (697 )
Depreciation
     (29,328 )     (5,409 )                     2,510       (G7 )     253       (G3 )                       (32,480 )
Amortization of deferred drydocking costs
     (3,657 )     (475 )                     158       (G7 )                     317       (G5 )         (3,657 )
Operating Income/(Loss)
     18,424       13,482       5,571               4,896               253               317                   31,295  
                                                                                             
Other expenses:
                                                                                            
Interest and finance costs
     (12,931 )     (2,437 )                     511       (G7 )     861       (G8 )     124       (G4 )         (15,594 )
Interest income
     358       3                                                                           361  
Loss on interest rate swaps
     (4,164 )     (1,222 )                                                                         (5,386 )
Income Tax
     (60 )                                                                                 (60 )
Foreign currency exchange gains  (losses), net
     14       (13 )                                                                         1  
Net Income/(Loss)
     1,641       9,813       5,571               5,407               1,114               441                   10,617  
Less: Net Loss Attributtable to the non-controlling interest
     (1,509 )                                                             1,509       (G6 )         -  
Net Income/(Loss) attributable to Seanergy
     132       9,813       5,571               5,407               1,114               1,950                   10,617  
 
Net Income per
        common share
                                                      
Basic   $         0.00                                              $ 0.10  
Diluted   $         0.00                                              $  0.10  
                                                       
Weighted average
        common shares
                                                      
Basic   87,916,947                                                107,048,062  
Diluted    87,916,947                                                107,048,062  
 
 
2
 

Explanation of adjustments
 
 
(G1):
Derived from the consolidated statement of income of Seanergy and subsidiaries for the period ended December 31, 2010.
 
 
(G2):
Derived from the MCS conversion from IFRS to US GAAP of the unaudited consolidated statement of operations for the period from January 1, 2010 to May 20, 2010.
 
 
(G3):
To adjust MCS depreciation expense based on the acquired value of the vessels as of the date of acquisition.
 
 
(G4):
To eliminate amortization of deferred financing costs due to purchase price adjustments.
 
 
(G5):
To eliminate amortization of dry-docking costs due to fair value adjustments.
 
 
(G6):
To eliminate 100% of non-controlling interest in BET.
 
 
(G7):
Reflects the operations of the eight disposed vessels during 2010 and prior to the acquisition.
 
 
(G8):
To adjust interest and finance costs for MCS, as if the increased margins on acquired loans were effective from January 1, 2010.
 


Basic:
  
December 31, 2010
  
Net income
  
$
10,617
  
         
Weighted average of common shares outstanding — basic
    
107,048,062
  
         
Net income per common share-basic
  
$
0.10
  
Diluted:
        
Net income
  
$
10,617
  
         
Weighted average common shares outstanding
    
107,048,062
  
Effect of dilutive common stock equivalents
    
–
  
 Ppro forma weighted average number of common shares outstanding — diluted
    
107,048,062
  
         
Net income per common share-diluted
  
$
0.10
  

Thus, as of December 31, 2010, securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS as mentioned above are:

Underwriters purchase options - common shares
    
1,000,000
  
Underwriters purchase options - warrants
    
1,000,000
  
Private warrants
    
17,155,584
  
Public warrants
    
22,968,000
  
Total
    
42,123,584
  

 
3
 
 
 

Maritime Capital Shipping Limited
Unaudited Consolidated Statement of Income
Conversion From IFRS to US GAAP
For the period January 1, 2010 to May 20, 2010
 
   
As Reported Under
  
Adjustments to Convert IFRS
to US GAAP
  
As Presented Under
  
   
IFRS
  
Debit
  
Credit
  
US GAAP
  
                   
Revenues from vessels
  
29,616
  
2,924
(B1)
-
  
26,692
  
Commissions
  
(650
)
194
(B1)
-
  
(844
)
Vessel Revenue, net
  
28,966
  
3,118
  
-
  
25,848
  
                   
Direct voyage expenses
      
60
(B4)
10
(B1)
(50
)
Vessel operating expenses
  
(8,114
)
11
(B2)
2,924
(B1)
(4,657
)
       
10
(B1)
194
(B1)
    
       
-
  
360
(B1)
    
Management fees
  
-
  
360
(B1)
-
  
(360
)
Administrative expenses
  
(1,528
)
-
  
40
(B3)
(1,415
)
           
60
(B4)
    
           
13
(B1)
    
Depreciation of assets
  
(5,409
)
-
      
(5,409
)
Amortization of deferred drydocking costs
  
(475
)
-
  
-
  
(475
)
Operating Income
  
13,440
          
13,482
  
                   
                   
Finance costs
  
(3,740
)
-
  
1,222
(B1)
(2,437
)
       
-
  
81
(B1)
    
Finance income
  
3
  
-
  
-
  
3
  
Interest rate swap interest
  
-
  
1,222
(B1)
-
  
(1,222
)
Other finance costs
  
81
  
81
(B1)
-
  
-
  
Foreign currency exchange losses
  
-
  
13
(B1)
    
(13
)
Net Income
  
9,784
  
4,875
  
4,904
  
9,813
  
                   
Income tax
 
237
  
237
(B5)
-
  
-
  
Net Income
  
10,021
  
5,112
  
4,904
  
9,813
  

Adjustments to Convert From IFRS to US GAAP (in thousands of U.S. dollars, unless otherwise noted):

(B1)
Reclassification to align with presentation of Seanergy's financial statements presentation.
(B2)
Represents additional operating expenses.
(B3)
To eliminate administrative expenses.
(B4)
To reclass administrative expenses.
(B5)
To eliminate tax expense related to eight vessels sold.
 
 
 

 
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