Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended March 31, 2018
Net income triples in transitioning market
Announces ten year Arctic contract
NEWPORT, RI - May 10, 2018 - Pangaea Logistics Solutions Ltd. (“Pangaea” or the “Company”) (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended March 31, 2018.
1st Quarter 2018 Highlights
$12.1 million Adjusted EBITDA(1)
Net income attributable to Pangaea Logistics Solutions Ltd. of $4.3 million or $0.10 per share.
Net revenue(2) increased over 40% from the prior year, to $16.3 million
TCE rates up 39% to $13,849/day
Results for the three months ended March 31, 2018 and 2017
“During the first quarter of 2018, we continued a transition to a stronger shipping market, with cargo owners and traders shifting their sourcing and transportation requirements in response to higher shipping costs and potential impacts of tariff and sanction threats,” said Ed Coll, Chief Executive Officer of Pangaea Logistics Solutions Ltd. “This kind of disruption presents us with strong opportunities to bring meaningful growth to our business in the right places, not in simple volume movements. This market plays to our practice of responding to our customers' needs and providing them with the most effective and efficient logistics and cargo services. We are in the process of extending and expanding important contracts, cautiously investing in new assets, adding people and capabilities in important places, and re-enforcing our presence in growing markets.”
In highlighting the Company’s improved performance, Mr. Coll noted, “Our high ice class Panamax fleet is an important leg of our specialized logistics business, serving customers who cannot move valuable cargo without our help. This year we saw a robust ice season for our Copenhagen office and over the past three summers we have performed extensive transportation activity from Baffin Island, Canada, shipping iron ore from Arctic regions to Europe, starting each July. We are excited to announce a recently signed ten year contract to support our Baffin Island customer’s mining business, which will utilize our entire panamax ice fleet for at least 25% of available days during each year. We will also be providing non-owned, chartered-in tonnage as part of our overall logistics approach for this customer.”
For the first quarter of 2018, the Company reported net income of $4.3 million, compared to net income of $1.3 million in the first quarter of 2017. Drybulk market rates improved considerably in the first quarter as compared to the same period of 2017, which resulted in improved TCE rates and Adjusted EBITDA, which was $12.1 million for the three months ended March 31, 2018, compared with $7.9 million for the three months ended March 31, 2017.
The average TCE rate was $13,849 per day for the three months ended March 31, 2018, compared to $9,945 per day for the same period in 2017. Total revenue for the three months ended March 31, 2018 was $79.0 million, compared to $84.5 million for the same period in 2017, a 6% decrease. The total number of shipping days decreased 19% to 3,524 in the three months ended March 31, 2018, compared to 4,342 for the same period in 2017, largely due to the completion of the Charleston project. The revenue decrease is predominantly due to that decrease in total shipping days, and was offset by a large increase in TCE rates.
(1) Adjusted EBITDA is a non-GAAP measure and represents income or loss from operations before depreciation and amortization, loss on sale and leaseback of vessel and, when applicable, loss on impairment of vessels and certain non-recurring items. See Reconciliation of Income from Operations to Adjusted EBITDA.
(2) Net revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses.
The following information was filed by Pangaea Logistics Solutions Ltd. (PANL) on Thursday, May 10, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.