d898236_6-k.htm
FORM 6-K


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of July 2008

Commission File Number

TOP SHIPS INC.
(Translation of registrant’s name into English)

1 VAS. SOFIAS & MEG.
ALEXANDROU STREET
151 24, MAROUSSI
ATHENS, GREECE
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [ X ]     Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)7: ___

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes [   ]   No [ X ]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ________.


 
 
 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this report on Form 6-K as Exhibit 1 are the unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations presenting the financial position of the Company as of December 31, 2007 and for the year ended December 31, 2007 on a pro forma basis as if the sale of five Suezmax vessels had occurred on December 31, 2007, in the case of the pro forma condensed consolidated balance sheet, and January 1, 2007, in the case of the pro forma condensed consolidated statement of operations.

 
 
 

          
EXHIBIT 1

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations presents our financial position as of December 31, 2007 and for the year ended December 31, 2007 on a pro forma basis as if the sale of five Suezmax tankers (“the transaction”), described below had occurred on December 31, 2007, in the case of the pro forma condensed consolidated balance sheet, and January 1, 2007, in the case of the pro forma condensed consolidated statement of operations. The historical financial information has been adjusted to give effect to pro forma events that are directly attributable to this transaction.

Certain adjustments are based on currently available information and estimates and assumptions; therefore, the actual adjustments may differ from the pro forma adjustments. However, management believes that the assumptions used provide a reasonable basis for presenting the transaction described below and that the pro forma adjustments give appropriate effect to the assumptions and are properly applied in the unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations.

The unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations are provided for informational purposes only and do not purport to represent what our financial position would actually have been had the transaction incurred on December 31, 2007 or January 1, 2007, nor do they purport to project our financial position at any future date.

This information should be read together with our consolidated financial statements and the notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s 20-F filed with the SEC on May 21, 2008.

Sale of five Suezmax tankers:

On June 26, 2008, the Company announced that it has entered into an agreement to sell five double-hull Suezmax tankers built between 1992 and 1996 for an aggregate sale price of $240 million. The five vessels are Endless, Limitless, Stormless, Ellen P and Edgeless. The vessels are expected to be delivered to their new owners between June 2008 and August 2008. The Company intends to use the net proceeds of the sales to pursue other acquisitions and general corporate purposes.


 
 
 


TOP SHIPS INC.
                        
                         
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
                    
(Expressed in thousands of U.S. Dollars - except for share and per share data)
                    
                         
                         
 
 
         
December 31,
2007
          
December 31,
2007
  
               
Pro forma
        
ASSETS
  
Note
    
As reported
    
Adjustments
    
Pro forma
  
                         
CASH AND CASH EQUIVALENTS
    
1
     $ 26,012     $ 77,589     $ 103,601  
OTHER CURRENT ASSETS
             29,881               29,881  
VESSEL HELD FOR SALE
             46,268               46,268  
                                 
TOTAL CURRENT ASSETS
             102,161               179,750  
                                 
ADVANCES FOR VESSELS ACQUISITIONS / UNDER CONSTRUCTION
             66,026               66,026  
VESSELS, NET AND OTHER FIXED ASSETS
    
1
       559,602       (225,362 )     334,240  
                                 
TOTAL FIXED ASSETS
             625,628               400,266  
                                 
LONG-TERM RECEIVABLES
             22,628               22,628  
RESTRICTED CASH
             26,500               26,500  
                                 
      Total assets
           $ 776,917     $ (147,773 )   $ 629,144  
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                
                                 
CURRENT PORTION OF LONG-TERM DEBT
    
1
     $ 107,488     $ (21,601 )   $ 85,887  
OTHER CURRENT LIABILITIES
    
1
       45,802       (253 )     45,549  
                                 
TOTAL CURRENT LIABILITIES
             153,290               131,436  
                                 
FAIR VALUE OF BELOW MARKET TIME CHARTER
             29,199               29,199  
FINANCIAL INSTRUMENTS, NET OF CURRENT PORTION
    
1
       10,683       (526 )     10,157  
LONG-TERM DEBT, NET OF CURRENT PORTION
    
1
       331,396       (136,185 )     195,211  
DEFERRED GAIN ON SALE AND LEASEBACK OF VESSELS
             40,941               40,941  
                                 
COMMITMENTS AND CONTINGENCIES
                                
                                 
STOCKHOLDERS' EQUITY
    
1
       211,408       10,792       222,200  
                                 
      Total liabilities and stockholders' equity
           $ 776,917     $ (147,773 )   $ 629,144  




 
 
 


TOP SHIPS INC.
                        
                         
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
        
(Expressed in thousands of U.S. Dollars - except for share and per share data)
              
                         
                         
                         
         
For the year ended December 31,
  
         
2007
    
Pro forma
    
2007
  
   
Note
    
As reported
    
Adjustments
    
Proforma
  
                         
REVENUES:
                        
                         
Revenues
    
2
     $ 252,259     $ (85,040 )   $ 167,219  
                                 
EXPENSES:
                                
                                 
Voyage expenses
    
2
       59,414       (23,198 )     36,216  
Charter hire expense
    
2
       94,118       (7,082 )     87,036  
Amortization of deferred gain on sale and leaseback of vessels
    
2
       (15,610 )     1,406       (14,204 )
Other vessel operating expenses
    
2
       67,914       (13,682 )     54,232  
Dry-docking costs
    
2
       25,094       (1,631 )     23,463  
Depreciation
    
2
       27,408       (16,104 )     11,304  
General and administrative expenses
    
2
       24,824       (118 )     24,706  
Foreign currency (gains) / losses, net
    
2
       176       (51 )     125  
Gain on sale of vessel
    
3
       (1,961 )     -       (1,961 )
                                 
     Operating loss
             (29,118 )     (24,580 )     (53,698 )
                                 
OTHER INCOME (EXPENSES):
                                
                                 
Interest and finance costs
    
4
       (18,318 )     10,414       (7,904 )
Fair value change of financial instruments
    
4
       (4,904 )     1,052       (3,852 )
Interest income
             3,248       -       3,248  
Other, net
             16       -       16  
                                 
     Total other expenses, net
             (19,958 )     11,466       (8,492 )
                                 
Net Loss
           $ (49,076 )   $ (13,114 )   $ (62,190 )
                                 
Loss per share, basic and diluted
           $ (4.09 )   $ (1.09 )   $ (5.19 )
                                 
Weighted average common shares outstanding, basic
             11,986,857       11,986,857       11,986,857  
                                 
Weighted average common shares outstanding, diluted
             11,986,857       11,986,857       11,986,857  

Notes to Adjustments to Pro Forma Condensed Consolidated Financial Statements (expressed in thousands of U.S. Dollars)

(1) 
Reflects the sale of five Suezmax tankers having net book value of $225,362 at December 31, 2007, for an aggregate price of $237,600, net of brokerage commissions, resulting in a gain of $12,238 if the transaction had occurred on December 31, 2007. The net proceeds after the repayment of loans associated with those vessels of $159,232 and the early termination of an interest rate swap with a fair value of $779 at December 31, 2007 totalled $77,589. Concurrently with the sale and the debt repayments the unamortized finance fees of $1,446 were written-off. The net gain from the sale of vessels and write-off of the unamortized finance fees was recorded as an increase to retained earnings of $10,792. The accounts affected by the sale of the five Suezmax tankers are presented below:

Account
  
Debit
    
Credit
  
Cash and cash equivalents
     77,589        
Current portion of long-term debt
     21,601        
Long-term debt, net of current portion
     137,631        
Current portion of financial instruments
     253        
Financial Instruments, net of current portion
     526        
Interest and finance costs
     1,446        
Vessels, net
             225,362  
Gain on sale of vessels
             12,238  
Long-term debt (financing fees write-off)
             1,446  

(2)
Reflects the revenues and expenses generated by the five Suezmax tankers during the year ended December 31, 2007.

(3)
We expect to realize a gain on sale of approximately $21,500 when the vessels are sold late June 2008 and in the third quarter of 2008.  However, we have not estimated the gain on sale as of January 1, 2007 because the gain is non-recurring and therefore is not included in the pro forma financial statements.

(4)
Reflects the interest expense associated with the loans of the five vessels of $9,821, the related amortization of finance fees of $511, other financial costs of $82 and the change in the fair value of the related interest rate swap of $1,052 for the year ended December 31, 2007.

 
 
 
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


TOP SHIPS INC.
(registrant)



                                                                  
 
       
 
Dated:  July 3, 2008        
By:  /s/ Evangelos J. Pistiolis
       Evangelos J. Pistiolis 
       Chief Executive Officer







SK 23116 0001 898236