Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended June 30, 2018
Company delivers earnings of $0.14 per share in the past three months and
$0.52 per share in the past twelve months
NEWPORT, RI - August 7, 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 June 30, 2018.
2nd Quarter 2018 Highlights
$13.7 million Adjusted EBITDA(1)
Net income attributable to Pangaea Logistics Solutions Ltd. of $5.8 million or $0.14 per share
Pangaea's average TCE rates increased 21% to $13,728 and the average premium over market rates was approximately $2,951
Cash, restricted cash and cash equivalents of $52.4 million
Results for the three months ended June 30, 2018 and 2017
For the second quarter of 2018, the Company reported net income of $5.8 million, compared to net loss of $4.7 million in the second quarter of 2017. The drybulk market fundamentals improved considerably in the second quarter as compared to the same period of 2017, which meant a dramatic improvement in net revenue(2) to $18.1 million for the three months ended June 30, 2018, compared with $10.6 million for the three months ended June 30, 2017. Charter hire and voyage expenses were lower, as a percentage of revenue, than in the comparable quarter.
“The pace of our shipping operations really picked up in the second quarter”, said Ed Coll, Pangaea’s Chief Executive Officer. “The average fleet employed in our business increased to about 47 ships during the quarter, and our overall time charter returns averaged $13,728 per day for the most recent quarter, a significant premium to market indexes. Our balance sheet improved as well, not only because of our profitable operations, but also because of our relationships with a range of financing sources who refinance maturing loans at favorable terms. Regarding cash flow, the sale/charterback transaction on the m/v Bulk Trident provided approximately $10 million in cash, and the planned sale/charterback of the m/v Bulk PODS, which was delivered on August 1, 2018, will return the cash purchase price of approximately $14 million. Collectively, these strong fundamentals position us to capitalize on the beginning of a good market cycle as we enter expansion mode.”
Coll also commented on the recent ten-year contract the Company has signed with Baffinland Iron Mines to carry high-ferrous iron ore from Baffin Island to Europe on its ice class ships. “This valuable relationship, started three years ago at the commencement of shipments of iron ore from Baffin Island, has proven to be an integral part of the Baffinland operation, and an anchor to our ice business in the summer months in the Arctic Circle. With continued development of the mining operations, we think there is room for both Baffinland and Pangaea to grow their businesses, and we look forward to working together for a long time, in mutually beneficial ways.”
(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 Tuesday, August 7, 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.