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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_________________________

FORM 10-Q 
_________________________
 
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
_________________________

Quarter ended September 30, 2003
 
Commission File Number:
 
 
1-10231



MC SHIPPING INC. 
 
 
 
(Exact name of the registrant as specified in its charter)
 
 

LIBERIA
 
98-0101881
 

(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

_________________________  

Richmond House, 12 Par-la-ville Road, Hamilton HM CX. Bermuda
 
 
 
(Address of principal executive offices)
 

_________________________  

441-295-7933
(Registrant's telephone number, including area code)
 
_________________________  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 
YES
x
NO
o
 

_________________________  

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

Class

 
Shares outstanding at September 30, 2003

 
 
Common stock, par value $.01

 
8,279,828

 
   1  
 
 
MC SHIPPING INC. AND SUBSIDIARIES



I N D E X


 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
5
 
 
 
 
6
 
 
 
 
7
 
 
8
 
 
 
 
 
14
 
 
 
17
 
 
 
18
 
 
 
19
 
 
 
20

 
  2   
 
 
PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

ASSETS

 

SEPTEMBER 30

  

DECEMBER 31

  
 

2003

  

2002

  
   
 
 
CURRENT ASSETS
   
 
    
 
  
Cash and cash equivalents
   
16,543,107
 
$
14,061,451
 
Restricted cash
   
143,509
   
2,001,759
 
Hire receivables
   
68,616
   
8,560
 
Recoverable from insurers
   
856,728
   
946,447
 
Inventories
   
537,684
   
506,401
 
Receivables from affiliates
   
-
   
80,518
 
Prepaid expenses and other current assets
   
3,600,996
   
1,182,139
 
   
 
 
TOTAL CURRENT ASSETS
   
21,750,640
   
18,787,275
 
   
 
 
 
    
 
    
 
  
VESSELS, AT COST
   
109,303,246
   
134,303,246
 
Less – Accumulated depreciation
   
(45,987,815
)
 
(43,098,414
)
   
 
 
 
    
63,315,431
   
91,204,832
 
   
 
 
 
    
 
    
 
  
FURNITURE & EQUIPMENT, AT COST
   
26,310
   
33,955
 
Less – Accumulated depreciation
   
(22,169
)
 
(25,492
)
   
 
 
 
    
4,141
   
8,463
 
   
 
 
 
    
 
    
 
  
OTHER ASSETS
   
 
    
 
  
Drydocking costs (net of accumulated amortization of $1,679,912 at September 30, 2003 and $1,180,678 at December 31, 2002)
   
5,370,035
   
1,638,711
 
Debt issuance cost (net of accumulated amortization of $1,434,694 at September 30, 2003 and $1,446,864 at December 31, 2002)
   
540,830
   
989,956
 
   
 
 
TOTAL ASSETS
 
$
90,981,077
 
$
112,629,237
 
   
 
 

THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
 
 
  3   
 
 
MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

LIABILITIES AND SHAREHOLDERS' EQUITY

   

SEPTEMBER 30

  

DECEMBER 31

  
   
2003
  

2002

  
   
 
 
 
    
 
    
 
  
CURRENT LIABILITIES
   
 
    
 
  
Accounts payable
 
$
989,003
 
$
650,174
 
Hire received in advance
   
29,750
   
629,645
 
Accrued expenses
   
9,358,117
   
5,455,907
 
Accrued interest
   
316,443
   
1,675,313
 
Current portion of long term debt
   
4,179,553
   
12,968,616
 
   
 
 
 
    
 
    
 
  
TOTAL CURRENT LIABILITIES
   
14,872,866
   
21,379,655
 
   
 
 
 
    
 
    
 
  
LONG TERM DEBT
   
 
    
 
  
11.25% Senior Notes due 2008
   
27,640,000
   
34,640,000
 
Secured Loans
   
20,114,805
   
30,821,243
 
   
 
 
 
    
 
    
 
  
TOTAL LONG TERM DEBT
   
47,754,805
   
65,461,243
 
   
 
 
 
    
 
    
 
  
TOTAL LIABILITIES
   
62,627,681
   
86,840,898
 
   
 
 
 
    
 
    
 
  
SHAREHOLDERS’ EQUITY
   
 
    
 
  
Common stock, $.01 par value
   
 
    
 
  
20,000,000 shares authorized
   
 
    
 
  
8,501,558 shares issued
   
85,016
   
84,816
 
Additional paid-in capital
   
52,118,023
   
52,165,202
 
Less : Treasury stock, at cost (221,730 shares)
   
(891,806
)
 
(971,185
)
Accumulated deficit
   
(22,647,840
)
 
(24,996,251
)
Accumulated comprehensive income
   
(309,997
)
 
(494,243
)
   
 
 
 
    
 
    
 
  
 
    
28,353,396
   
25,788,339
 
   
 
 
 
    
 
    
 
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
90,981,077
 
$
112,629,237
 
   
 
 

THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
 
 
  4   
 
 
MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Quarters ended September 30, 2003 and September 30, 2002
(UNAUDITED)

   

SEPTEMBER 30

  

SEPTEMBER 30

  
   

2003

  

2002

  
 
 
 
 
    
 
    
 
  
CHARTERHIRE AND OTHER INCOME
 
$
7,911,048
 
$
11,036,997
 
 
    
 
    
 
  
COSTS AND EXPENSES
   
 
    
 
  
Commission on Charterhire
   
(210,544
)
 
(268,772
)
Vessel Operating Expenses
   
(4,899,586
)
 
(4,782,543
)
Amortisation of Drydocking Costs
   
(359,701
)
 
(139,795
)
Depreciation
   
(1,549,717
)
 
(2,640,025
)
General and Administrative Expenses
   
(253,775
)
 
(261,294
)
   
 
 
OPERATING INCOME
   
(637,725
)
 
2,944,567
 
 
    
 
    
 
  
OTHER INCOME/(EXPENSES)
   
 
    
 
  
Interest Expense
   
(1,096,591