Eagle Bulk Shipping Inc. Reports Results for the First Quarter of 2023
Quarter Highlights:
- Generated Revenues, net of
$105.2 million - Achieved TCE(1) of
$12,917 /day based on TCE Revenue(1) of$59.2 million
- Achieved TCE(1) of
- Realized net income of
$3.2 million , or$0.25 per basic share- Adjusted net income(1) of
$3.4 million , or$0.26 per basic share(1)
- Adjusted net income(1) of
- Generated Adjusted EBITDA(1) of
$18.7 million - Executed agreements to acquire two high-specification 2020-built scrubber-fitted Ultramax bulkcarriers for
$60.2 million , or$30.1 million each- Vessels are to be renamed Halifax Eagle and Vancouver Eagle and are expected to be delivered during the second quarter
- Declared a quarterly dividend of
$0.10 per share for the first quarter of 2023- Dividend is payable on
May 25, 2023 to shareholders of record at the close of business onMay 17, 2023
- Dividend is payable on
Recent Developments:
- Executed agreements to sell three 2011-built non-core, non-scrubber-fitted Supramax bulkcarriers (Montauk Eagle, Newport Eagle and Sankaty Eagle) for
$49.8 million , or$16.6 million each- Sale of the Newport Eagle closed on
May 3, 2023 , while the remaining two transactions are expected to close during the second quarter
- Sale of the Newport Eagle closed on
- Coverage position for the second quarter of 2023 is as follows:
- 65% of owned available days fixed at an average TCE of
$16,030
- 65% of owned available days fixed at an average TCE of
Eagle's CEO
On the vessel sale and purchase front, we continue to act opportunistically to create value for our stakeholders. Following our recent accretive acquisitions of four modern high-specification Ultramaxes, we have taken advantage of a recent increase in both S&P liquidity and ship values to sell three non-core, non-scrubber-fitted Supramax vessels, which were purchased opportunistically just two years ago. Based on our calculations, we generated a levered IRR of 70% on this S&P transaction, inclusive of cash generated.
Looking forward, we remain positive about the medium-term prospects for the drybulk industry, particularly given strong supply side fundamentals. With a fully modern fleet of 52, predominately scrubber-fitted vessels, and
1 These are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release. An explanation of these measures and how they are calculated are also included below under the heading “Supplemental Information - Non-GAAP Financial Measures.”
Fleet Operating Data
| Three Months Ended | ||||
| Ownership Days | 4,811 | 4,770 | ||
| Owned Available Days | 4,581 | 4,437 | ||
- Gibraltar Eagle, a 2015-built Ultramax (64k DWT), acquired in the fourth quarter of 2022 for total consideration of
$24.3 million , was delivered to the Company in the first quarter of 2023 - Halifax Eagle, a 2020-built, scrubber-fitted Ultramax (64k DWT), acquired in the first quarter of 2023 for total consideration of
$30 .1 million, is expected to be delivered to the Company in the second quarter of 2023 - Vancouver Eagle, a 2020-built, scrubber-fitted Ultramax (64k DWT), acquired in the first quarter of 2023 for total consideration of
$30 .1 million, is expected to be delivered to the Company in the second quarter of 2023 - Jaeger, a 2004-built Supramax (52k DWT), sold in the first quarter of 2023 for total consideration of
$9.0 million , was delivered to the buyer in the first quarter of 2023 - Montauk Eagle, Newport Eagle and Sankaty Eagle, each a 2011-built Supramax (58k DWT), sold in the second quarter of 2023 for total consideration of
$49.8 million - Newport Eagle was delivered to the buyer in the second quarter of 2023 and the two remaining vessels are expected to be delivered to the buyer in the second quarter of 2023
- Pro forma owned fleet totals 52 vessels with an average age of 9.8 years
Results of Operations for the three months ended
For the three months ended
For the three months ended
Revenues, net
Revenues, net for the three months ended
Voyage expenses
Voyage expenses for the three months ended
Vessel operating expenses
Vessel operating expenses for the three months ended
Adjusted vessel operating expenses(1), which excludes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of the Company’s vessels and discretionary hull and hold upgrades for the three months ended
Charter hire expenses
Charter hire expenses for the three months ended
Chartered-in days, which is the aggregate number of days in a period during which the Company chartered-in vessels, for the three months ended
Depreciation and amortization
Depreciation and amortization for the three months ended
General and administrative expenses
General and administrative expenses for the three months ended
Other operating expense
Other operating expense for the three months ended
Gain on sale of vessel
For the three months ended
Interest expense
Interest expense for the three months ended
Interest income
Interest income for the three months ended
Realized and unrealized loss on derivative instruments, net
Realized and unrealized loss on derivative instruments, net for the three months ended
A summary of outstanding FFAs as of
| FFA Period | Average FFA Contract Price |
Number of Days Hedged |
||||
| Quarter ending |
$ | 14,297 | (240 | ) | ||
| Quarter ending |
$ | 15,007 | 630 | |||
| Quarter ending |
$ | 14,297 | (240 | ) | ||
| Quarter ending |
$ | 15,007 | 630 | |||
| Quarter ending |
$ | 13,915 | (195 | ) | ||
| Quarter ending |
$ | 15,007 | 630 | |||
Liquidity and Capital Resources
| Three Months Ended | ||||||||
| ($ in thousands) | ||||||||
| Net cash provided by operating activities | $ | 7,411 | $ | 42,254 | ||||
| Net cash used in investing activities | (18,583 | ) | (3,937 | ) | ||||
| Net cash used in financing activities | (22,727 | ) | (40,862 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (33,899 | ) | (2,545 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 189,754 | 86,222 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 155,855 | $ | 83,677 | ||||
Net cash provided by operating activities for the three months ended
Net cash used in investing activities for the three months ended March 31, 2023 was
Net cash used in financing activities for the three months ended
As of
A summary of the Company’s debt as of
| ($ in thousands) | Principal Amount Outstanding |
Debt Discounts and Debt Issuance Costs |
Carrying Value |
Principal Amount Outstanding |
Debt Discounts and Debt Issuance Costs |
Carrying Value |
||||||||||||||||||
| Convertible Bond Debt | $ | 104,119 | $ | (524 | ) | $ | 103,595 | $ | 104,119 | $ | (620 | ) | $ | 103,499 | ||||||||||
| Global Ultraco Debt Facility | 225,300 | (6,346 | ) | 218,954 | 237,750 | (6,767 | ) | 230,983 | ||||||||||||||||
| Revolver loan under Global Ultraco Debt Facility (1) | — | — | — | — | — | — | ||||||||||||||||||
| Total debt | 329,419 | (6,870 | ) | 322,549 | 341,869 | (7,387 | ) | 334,482 | ||||||||||||||||
| Less: Current portion - Global Ultraco Debt Facility | (49,800 | ) | — | (49,800 | ) | (49,800 | ) | — | (49,800 | ) | ||||||||||||||
| Total long-term debt | $ | 279,619 | $ | (6,870 | ) | $ | 272,749 | $ | 292,069 | $ | (7,387 | ) | $ | 284,682 | ||||||||||
| (1 | ) | As of |
The Company continuously evaluates potential transactions that it expects to be accretive to earnings, enhance shareholder value or are in the best interests of the Company, including without limitation, business combinations, the acquisition of vessels or related businesses, repayment or refinancing of existing debt, the issuance of new securities, share and debt repurchases or other transactions.
Capital Expenditures and Drydocking
Capital expenditures relate to the purchase of vessels and capital improvements to our vessels, which are expected to enhance their revenue earning capabilities, efficiency and/or safety and to comply with relevant regulations.
On
On
In addition to acquisitions that may be pursued in future periods, the Company’s other major capital expenditures include funding the Company’s program of regularly scheduled drydocking and vessel improvements necessary to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its drydockings, the costs are relatively predictable. In accordance with statutory requirements, management anticipates that vessels are to be drydocked every five years for vessels less than 15 years and every two and a half years for vessels older than 15 years. Funding of drydocking costs is anticipated to be satisfied with cash from operations. Generally, drydocking requires us to reposition vessels from a discharge port to shipyard facilities, which will reduce our owned available days during that period.
Drydocking costs incurred are deferred and amortized to expense on a straight-line basis over the period through the date of the next scheduled drydocking for those vessels. During the three months ended
The following table provides certain information about the estimated costs for anticipated vessel drydockings, BWTS and vessel upgrades in the next four quarters, along with the anticipated off-hire days:
| Projected Costs (1) ($ in millions) | |||||||||||
| Quarters Ending | Off-hire Days(2) | BWTS | Drydocks | Vessel Upgrades(3) | |||||||
| 293 | $ | 1.8 | $ | 6.5 | $ | 0.8 | |||||
| 170 | $ | 1.2 | $ | 1.8 | $ | — | |||||
| 249 | $ | 0.8 | $ | 4.6 | $ | 0.4 | |||||
| 123 | $ | — | $ | 4.6 | $ | 0.4 | |||||
| (1 | ) | We intend to fund these costs with cash on hand. |
| (2 | ) | Actual duration of off-hire days will vary based on the age and condition of the vessel, yard schedules and other factors. Projected off-hire days include an additional allowance for unforeseen events. |
| (3 | ) | Vessel upgrades represents capital expenditures relating to items such as high-spec low friction hull paint which improves fuel efficiency and reduces fuel costs, |
SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA
The following table summarizes the Company’s selected condensed consolidated financial statements and other data for the periods indicated below.
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share data) |
||||||||
| Three Months Ended | ||||||||
| Revenues, net | $ | 105,198 | $ | 184,398 | ||||
| Voyage expenses | 33,475 | 43,627 | ||||||
| Vessel operating expenses | 31,257 | 27,915 | ||||||
| Charter hire expenses | 12,420 | 22,711 | ||||||
| Depreciation and amortization | 14,732 | 14,580 | ||||||
| General and administrative expenses | 10,950 | 10,054 | ||||||
| Other operating expense | 90 | 133 | ||||||
| Gain on sale of vessel | (3,318 | ) | — | |||||
| Total operating expenses, net | 99,606 | 119,020 | ||||||
| Operating income | 5,592 | 65,378 | ||||||
| Interest expense | 3,857 | 4,447 | ||||||
| Interest income | (1,836 | ) | (45 | ) | ||||
| Realized and unrealized loss on derivative instruments, net | 369 | 7,903 | ||||||
| Total other expense, net | 2,390 | 12,305 | ||||||
| Net income | $ | 3,202 | $ | 53,073 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 13,053,117 | 12,974,125 | ||||||
| Diluted | 13,148,244 | 16,254,898 | ||||||
| Per share amounts: | ||||||||
| Basic net income | $ | 0.25 | $ | 4.09 | ||||
| Diluted net income | $ | 0.24 | $ | 3.27 | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data and par values) |
||||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 153,237 | $ | 187,155 | ||||
| Accounts receivable, net of a reserve of |
29,719 | 32,311 | ||||||
| Prepaid expenses | 6,507 | 4,531 | ||||||
| Inventories | 22,913 | 28,081 | ||||||
| Collateral on derivatives | 3,482 | 909 | ||||||
| Fair value of derivative assets – current | 7,734 | 8,479 | ||||||
| Other current assets | 671 | 558 | ||||||
| Total current assets | 224,263 | 262,024 | ||||||
| Noncurrent assets: | ||||||||
| Vessels and vessel improvements, at cost, net of accumulated depreciation of |
900,659 | 891,877 | ||||||
| Advances for vessel purchases | 6,020 | 3,638 | ||||||
| Advances for BWTS and other assets | 2,507 | 2,722 | ||||||
| Deferred drydock costs, net | 43,268 | 42,849 | ||||||
| Other fixed assets, net of accumulated depreciation of |
295 | 310 | ||||||
| Operating lease right-of-use assets | 24,129 | 23,006 | ||||||
| Restricted cash – noncurrent | 2,618 | 2,599 | ||||||
| Fair value of derivative assets – noncurrent | 6,022 | 8,184 | ||||||
| Total noncurrent assets | 985,518 | 975,185 | ||||||
| Total assets | $ | 1,209,781 | $ | 1,237,209 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 19,290 | $ | 20,129 | ||||
| Accrued interest | 1,726 | 3,061 | ||||||
| Other accrued liabilities | 19,566 | 24,097 | ||||||
| Fair value of derivative liabilities – current | 345 | 163 | ||||||
| Current portion of operating lease liabilities | 21,778 | 22,045 | ||||||
| Unearned charter hire revenue | 8,492 | 9,670 | ||||||
| Current portion of long-term debt | 49,800 | 49,800 | ||||||
| Total current liabilities | 120,997 | 128,965 | ||||||
| Noncurrent liabilities: | ||||||||
| Long-term debt – Global Ultraco Debt Facility, net of debt discount and debt issuance costs | 169,154 | 181,183 | ||||||
| Convertible Bond Debt, net of debt discount and debt issuance costs | 103,595 | 103,499 | ||||||
| Noncurrent portion of operating lease liabilities | 3,583 | 3,173 | ||||||
| Other noncurrent accrued liabilities | 743 | 1,208 | ||||||
| Total noncurrent liabilities | 277,075 | 289,063 | ||||||
| Total liabilities | 398,072 | 418,028 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, |
— | — | ||||||
| Common stock, |
131 | 130 | ||||||
| Additional paid-in capital | 966,261 | 966,058 | ||||||
| Accumulated deficit | (168,373 | ) | (163,556 | ) | ||||
| Accumulated other comprehensive income | 13,690 | 16,549 | ||||||
| Total stockholders' equity | 811,709 | 819,181 | ||||||
| Total liabilities and stockholders' equity | $ | 1,209,781 | $ | 1,237,209 | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) |
||||||||
| Three Months Ended | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 3,202 | $ | 53,073 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 11,191 | 11,697 | ||||||
| Amortization of operating lease right-of-use assets | 6,326 | 5,706 | ||||||
| Amortization of deferred drydocking costs | 3,541 | 2,883 | ||||||
| Amortization of debt discount and debt issuance costs | 518 | 562 | ||||||
| Gain on sale of vessel | (3,318 | ) | — | |||||
| Unrealized loss on derivative instruments, net | 236 | 11,450 | ||||||
| Stock-based compensation expense | 1,855 | 1,487 | ||||||
| Drydocking expenditures | (3,661 | ) | (10,774 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts payable | (833 | ) | 3,010 | |||||
| Accounts receivable | 2,416 | (12,462 | ) | |||||
| Accrued interest | (1,335 | ) | (1,445 | ) | ||||
| Inventories | 5,168 | (10,120 | ) | |||||
| Operating lease liabilities current and noncurrent | (7,306 | ) | (5,706 | ) | ||||
| Collateral on derivatives | (2,573 | ) | (6,226 | ) | ||||
| Fair value of derivatives, other current and noncurrent assets | (133 | ) | (252 | ) | ||||
| Other accrued liabilities | (4,728 | ) | 628 | |||||
| Prepaid expenses | (1,976 | ) | (1,916 | ) | ||||
| Unearned charter hire revenue | (1,179 | ) | 659 | |||||
| Net cash provided by operating activities | 7,411 | 42,254 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of vessels and vessel improvements | (20,881 | ) | (283 | ) | ||||
| Advances for vessel purchases | (6,020 | ) | — | |||||
| Purchase of ballast water treatment systems | (210 | ) | (3,494 | ) | ||||
| Proceeds from hull and machinery insurance claims | 174 | — | ||||||
| Net proceeds from sale of vessel | 8,380 | — | ||||||
| Purchase of other fixed assets | (26 | ) | (160 | ) | ||||
| Net cash used in investing activities | (18,583 | ) | (3,937 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayment of long-term debt – Global Ultraco Debt Facility | (12,450 | ) | (12,450 | ) | ||||
| Dividends paid | (8,626 | ) | (26,818 | ) | ||||
| Cash paid for taxes related to net share settlement of equity awards | (1,651 | ) | (1,862 | ) | ||||
| Cash received from exercise of stock options | — | 85 | ||||||
| Proceeds from equity offerings, net of issuance costs | — | 201 | ||||||
| Financing costs paid to lenders | — | (18 | ) | |||||
| Net cash used in financing activities | (22,727 | ) | (40,862 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (33,899 | ) | (2,545 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 189,754 | 86,222 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 155,855 | $ | 83,677 | ||||
| Cash paid for interest | $ | 6,936 | $ | 4,791 | ||||
Supplemental Information - Non-GAAP Financial Measures
This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.
Non-GAAP Financial Measures
Adjusted net income and Basic and Diluted adjusted net income per share
Adjusted net income and Basic and Diluted adjusted net income per share represent Net income and Basic and Diluted net income per share, respectively, as adjusted to exclude unrealized gains and losses on FFAs and bunker swaps, gains and losses on debt extinguishment, and impairment of operating lease right-of-use assets. The Company utilizes derivative instruments such as FFAs and bunker swaps to partially hedge against its underlying long physical position in ships (as represented by owned and third-party chartered-in vessels). As the Company does not apply hedge accounting to these derivative instruments, unrealized mark-to-market gains and losses on forward hedge positions impact current quarter results, causing timing mismatches in the Condensed Consolidated Statements of Operations. Additionally, we believe that gains and losses on debt extinguishment and impairment of operating lease right-of-use assets are not representative of our normal business operations. We believe that Adjusted net income and Adjusted net income per share are more useful to analysts and investors in comparing the results of operations and operational trends between periods and relative to other peer companies in our industry. Our Adjusted net income should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with
The following table presents the reconciliation of our Net income to Adjusted net income:
| Reconciliation of GAAP Net income to Adjusted net income (in thousands, except share and per share data) |
||||||
| Three Months Ended | ||||||
| Net income | $ | 3,202 | $ | 53,073 | ||
| Adjustments to reconcile net income to adjusted net income: | ||||||
| Unrealized loss on FFAs and bunker swaps | 236 | 11,450 | ||||
| Adjusted net income | $ | 3,438 | $ | 64,523 | ||
| Weighted average shares outstanding: | ||||||
| Basic | 13,053,117 | 12,974,125 | ||||
| Diluted (1) | 13,148,244 | 16,254,898 | ||||
| Per share amounts: | ||||||
| Basic adjusted net income | $ | 0.26 | $ | 4.97 | ||
| Diluted adjusted net income | $ | 0.26 | $ | 3.97 | ||
| (1 | ) | Diluted weighted average shares outstanding for the three months ended |
EBITDA and Adjusted EBITDA
We define EBITDA as Net income under GAAP adjusted for interest, income taxes and depreciation and amortization.
Adjusted EBITDA is a non-GAAP financial measure that is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating performance as compared to that of other peer companies in our industry, without regard to financing methods, capital structure or historical costs basis. Our Adjusted EBITDA should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with
The following table presents a reconciliation of our Net income to EBITDA and Adjusted EBITDA:
| Reconciliation of GAAP Net income to EBITDA and Adjusted EBITDA (in thousands) |
||||||||
| Three Months Ended | ||||||||
| Net income | $ | 3,202 | $ | 53,073 | ||||
| Adjustments to reconcile net income to EBITDA: | ||||||||
| Interest expense | 3,857 | 4,447 | ||||||
| Interest income | (1,836 | ) | (45 | ) | ||||
| Income taxes | — | — | ||||||
| EBIT | 5,223 | 57,475 | ||||||
| Depreciation and amortization | 14,732 | 14,580 | ||||||
| EBITDA | 19,955 | 72,055 | ||||||
| Non-cash, one-time and other adjustments to EBITDA(1) | (1,227 | ) | 12,937 | |||||
| Adjusted EBITDA | $ | 18,728 | $ | 84,992 | ||||
| (1 | ) | One-time and other adjustments to EBITDA for the three months ended |
TCE revenue and TCE
Time charter equivalent revenue (“TCE revenue”) and time charter equivalent (“TCE”) are non-GAAP financial measures that are commonly used in the shipping industry primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts. The Company defines TCE revenue as revenues, net less voyage expenses and charter hire expenses, adjusted for realized gains and losses on FFAs and bunker swaps and defines TCE as TCE revenue divided by the number of owned available days. Owned available days is the number of our ownership days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. TCE provides additional meaningful information in conjunction with Revenues, net, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their performance. Our TCE revenue and TCE should not be considered alternatives to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with
The following table presents the reconciliation of our Revenues, net to TCE:
| Reconciliation of Revenues, net to TCE (in thousands, except for Owned available days and TCE data) |
||||||||
| Three Months Ended | ||||||||
| Revenues, net | $ | 105,198 | $ | 184,398 | ||||
| Less: | ||||||||
| Voyage expenses | (33,475 | ) | (43,627 | ) | ||||
| Charter hire expenses | (12,420 | ) | (22,711 | ) | ||||
| Realized (loss)/gain on FFAs and bunker swaps | (133 | ) | 3,547 | |||||
| TCE revenue | $ | 59,170 | $ | 121,607 | ||||
| Owned available days | 4,581 | 4,437 | ||||||
| TCE | $ | 12,917 | $ | 27,407 | ||||
Adjusted vessel operating expenses and Adjusted DVOE
Adjusted vessel operating expenses and Adjusted DVOE are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements to assess our operating performance as compared to that of other peer companies in our industry. The Company defines Adjusted vessel operating expenses as vessel operating expenses presented in accordance with
The following table presents the reconciliation of our Vessel operating expenses to Adjusted vessel operating expenses and Adjusted DVOE:
| Reconciliation of GAAP Vessel operating expenses to Adjusted vessel operating expenses and Adjusted DVOE (in thousands, except for Ownership days and Adjusted DVOE data) |
||||||||
| Three Months Ended | ||||||||
| Vessel operating expenses | $ | 31,257 | $ | 27,915 | ||||
| Less: | ||||||||
| Adjustments to vessel operating expenses(1): | (467 | ) | (148 | ) | ||||
| Adjusted vessel operating expenses | $ | 30,790 | $ | 27,767 | ||||
| Ownership days | 4,811 | 4,770 | ||||||
| Adjusted DVOE | $ | 6,400 | $ | 5,821 | ||||
| (1 | ) | Adjustments to vessel operating expenses includes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of our vessels and discretionary hull and hold upgrades. |
Glossary of Terms
Chartered-in days: We define chartered-in days as the aggregate number of days in a period during which we charter-in vessels under operating leases. The Company charters-in vessels on a long-term and short-term basis.
Owned available days: We define owned available days as the number of ownership days less the aggregate number of days that our owned vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys and other reasons which prevent the vessel from performing under a charter party in a period. The shipping industry uses owned available days to measure the number of days in a period during which owned vessels should be capable of generating revenues.
Ownership days: We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.
Definitions of Capitalized Terms
Convertible Bond Debt: Convertible Bond Debt refers to 5.0% Convertible Senior Notes due 2024 issued by the Company on
Global Ultraco Debt Facility: Global Ultraco Debt Facility refers to the senior secured credit facility entered into by
Conference Call Information
As previously announced, members of Eagle’s senior management team will host a teleconference and webcast at
A live webcast of the call will be available on the Investor Relations page of the Company's website at ir.eagleships.com. To access the call by phone, please register at https://register.vevent.com/register/BIb921e64613044e4a955192365d96e71f and you will be provided with dial-in details. A replay of the webcast will be available on the Investor Relations page of the Company's website.
About
The Company is a
Website Information
We intend to use our website, www.eagleships.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, filings with the
Disclaimer: Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbor provided for under these sections. These statements may include words such as “believe,” “estimate,” “project,” “intend,” “expect,” “plan,” “anticipate,” and similar expressions in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements in this release reflect management’s current expectations and observations with respect to future events and financial performance. Where we express an expectation or belief as to future events or results, including future plans with respect to financial performance, the payment of dividends and/or repurchase of shares, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. The principal factors that affect our financial position, results of operations and cash flows include market freight rates, which fluctuate based on various economic and market conditions, periods of charter hire, vessel operating expenses and voyage costs, which are incurred primarily in
We have based these statements on assumptions and analyses formed by applying our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. The Company’s future results may be impacted by adverse economic conditions, such as inflation, deflation, or lack of liquidity in the capital markets, that may negatively affect it or parties with whom it does business. Should one or more of the foregoing risks or uncertainties materialize in a way that negatively impacts the Company, or should the Company’s underlying assumptions prove incorrect, the Company’s actual results may vary materially from those anticipated in its forward-looking statements, and its business, financial condition and results of operations could be materially and adversely affected. Risks and uncertainties are further described in our Annual Report on Form 10-K for the year ended
CONTACT
Company Contact:
Chief Financial Officer
Tel. +1 203-276-8100
Email: investor@eagleships.com
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Source: Eagle Bulk Shipping Inc.
Source: Eagle Bulk Shipping Inc.