Back to GetFilings.com



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 March 31, 2005
  
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
 Ö 
NO
 
  

Indicate by a check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
 
 
YES
 
NO
Ö
  

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
  
 
March 31, 2005
  
Common stock,
    
par value $.01
8,776,657
  
 
1

MC SHIPPING INC. AND SUBSIDIARIES

 
I N D E X
 
   
Page
     
 
     
 
     
 
3
   
 
 
5
   
 
 
6
   
 
 
7
   
 
 
   
15
Item 3. Market Risk
18
   
 
19
   
 
   
 
PART II:
20
   
 
 
21
   
 
 
Certifications provided by the Chief Executive Officer and the Chief Financial Officer of the company pursuant to Section 302 of the Sarbanes-Oxley Act of 2003
22
   
 
Exhibits
  
24

2

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


ASSETS

   
MARCH 31
  
DECEMBER 31
  
   
2005
  
2004
  
   
(UNAUDITED)
      
CURRENT ASSETS
          
Cash
 
$
18,339,986
  
$
11,629,896
  
Hire receivables
   
8,370
    
4,835
  
Recoverable from insurers
    
60,884
    
55,529
  
Inventories
    
247,754
    
1,044,353
  
Receivables from affiliates
   
929,759
    
80,492
  
Prepaid expenses and other current assets
    
1,866,582
    
1,280,088
  
TOTAL CURRENT ASSETS
    
21,453,335
    
14,095,193
  
               
VESSELS, AT COST
   
72,185,544
    
109,303,246
  
Less accumulated depreciation
    
(26,479,721
)
  
(52,251,877
)
     
45,705,823
    
57,051,369
  
OTHER ASSETS
              
Down payments on acquisitions of vessels
    
8,297,725
    
-
  
Investments in Associated Companies
    
4,718,049
    
-
  
Furniture & Equipment (net of accumulated depreciation of $25,727 at March 31, 2005 and $30,645 at December 31, 2004)
    
4,663
    
-
  
Dry-docking costs (net of accumulated amortisation of $1,472,733 at March 31, 2005 and $3,439,685 at December 31, 2004)
    
1,831,568
    
3,829,590
  
Restricted Cash
    
-
    
5,000,000
  
Debt issuance costs (net of accumulated amortisation of $16,813 at March 31, 2005 and $10,323 at December 31, 2004)
    
224,549
    
340,916
  
TOTAL ASSETS
  
$
82,235,712
  
$
80,317,068
  

THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

3

MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS’ EQUITY

   
MARCH 31
  
DECEMBER 31
  
   
2005
  
2004
  
   
(UNAUDITED)
      
           
CURRENT LIABILITIES
          
Accounts payable
  
$
570,511
  
$
529,960
  
Hire received in advance
    
584,843
    
584,843
  
Accrued expenses
    
2,040,558
    
3,045,787
  
Accrued interest
    
221,056
    
319,923
  
Current portion of long term debt
    
5,000,000
    
7,500,000
  
               
TOTAL CURRENT LIABILITIES
    
8,416,968
    
11,980,513
  
               
LONG TERM DEBT
              
Secured Loans
    
23,750,000
    
37,500,000
  
               
TOTAL LIABILITIES
    
32,166,968
    
49,480,513
  
               
DEFERRED GAIN ON SALE OF VESSELS
    
16,788,717
    
-
  
               
SHAREHOLDERS’ EQUITY
              
           
 
Common stock, $.01 par value 20,000,000 shares authorised - 8,776,657 shares issued
    
87,767
    
87,660
  
Additional paid-in capital
    
51,288,307
    
51,280,010
  
Accumulated deficit
    
(18,745,962
)
  
(20,792,717
)
Accumulated other comprehensive income
    
649,915
    
261,602
  
     
       
     
33,280,027
    
30,836,555
  
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  
$
82,235,712
  
$
80,317,068
  

THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

4

MC SHIPPING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Quarters ended March 31, 2005 and March 31, 2004
(UNAUDITED)

   
MARCH 31
  
MARCH 31
  
   
2005
  
2004
  
           
CHARTERHIRE AND OTHER INCOME
  
$
6,238,486
  
$
7,895,776
  
               
COSTS AND EXPENSES
              
Commission on Charterhire
    
(153,856
)
  
(190,374
)
Vessel Operating Expenses
    
(2,723,867
)
  
(4,385,901
)
Amortisation of Dry-docking Costs
    
(220,668
)
  
(355,160
)
Depreciation
    
(1,178,276
)
  
(1,285,587
)
General and Administrative Expenses
    
(536,402
)
  
(332,228
)
OPERATING INCOME
    
1,425,417
    
1,346,526
  
               
OTHER INCOME/(EXPENSES)
              
Interest Expense
    
(354,349
)
  
(1,005,221
)
Interest Income
    
133,571