Eagle Bulk Shipping Inc. Reports Record Results for the Third Quarter of 2021
Quarter highlights:
- Generated Revenues, net of
$183.4 million - Generated TCE Revenue (1) of
$127.1 million - Achieved TCE (1) of
$29,088 /day
- Generated TCE Revenue (1) of
- Realized record net income of
$78.3 million , or
$6.12 per basic share
- Adjusted net income(1) of
$72.1 million , or
$5.63 (1) per adjusted basic share
- Adjusted net income(1) of
- Generated Adjusted EBITDA(1) of
$91.0 million - Declared a quarterly dividend of
$2.00 per share for the third quarter of 2021. Payable on
November 24, 2021 to shareholders of record at the close of business on
November 15, 2021 - Took delivery of previously announced vessel acquisitions, the M/V Antwerp Eagle, M/V Newport Eagle and M/V Valencia Eagle
Recent Developments:
- Executed
$400.0 million comprehensive refinancing, lowering cost of debt and extending maturity duration- New facility consists of
$300.0 million term loan and
$100.0 million revolver facility out of which
$50.0 million was drawn on the date of closing
- New facility consists of
- Repaid the
$50.0 million revolver with the cash generated from operations bringing our revolver availability to
$100.0 million - Established new dividend policy and
$50.0 million share repurchase program - Looking ahead, fixed 75% of Q4 2021 available days at an average TCE of
$32,400 as of
November 4, 2021
Eagle’s CEO
Following our recently adopted dividend policy of paying quarterly cash dividends equal to a minimum of 30% of net income, our Board has authorized a quarterly dividend of
Looking ahead, our TCE performance continues to improve, and as of today, we have covered approximately 75% of our available days for the fourth quarter at a net TCE of
Fleet Operating Data
Three Months Ended | Nine Months Ended | ||||||||||
Ownership Days | 4,697 | 4,546 | 13,407 | 13,646 | |||||||
Chartered in Days | 563 | 535 | 1,718 | 1,664 | |||||||
Available Days | 4,931 | 4,940 | 14,403 | 14,818 | |||||||
Operating Days | 4,908 | 4,905 | 14,308 | 14,698 | |||||||
Fleet Utilization (%) | 99.5 | % | 99.3 | % | 99.3 | % | 99.2 | % |
Vessels acquired and delivered into the fleet in the third quarter of 2021
- Newport Eagle, a Supramax (58K DWT / 2011-built)
- Antwerp Eagle, an Ultramax (64K DWT / 2015-built)
Vessels acquired and delivered in the fourth quarter of 2021
-
Valencia Eagle , an Ultramax (64K DWT / 2015-built)
Vessels sold and delivered in the third quarter of 2021
- Tern, a Supramax (50K DWT / 2003-built)
Results of Operations for the three and nine months ended
For the three months ended
For the three months ended
For the nine months ended
For the nine months ended
Revenues, net
Revenues, net for the three months ended
Revenues, net for the nine months ended
Voyage expenses
Voyage expenses for the three months ended
Voyage expenses for the nine months ended
Vessel operating expenses
Vessel operating expenses for the three months ended
Average daily vessel operating expenses excluding one-time, non-recurring expenses related to vessel acquisitions and sales and termination charges relating to change in crewing manager on some of our vessels for the three months ended
Vessel operating expenses for the nine months ended
Average daily vessel operating expenses excluding one-time, non-recurring expenses related to vessel acquisitions and sales and termination charges relating to change in crewing manager on some of our vessels for the nine months ended
Charter hire expenses
Charter hire expenses for the three months ended
Charter hire expenses for the nine months ended
Depreciation and amortization
Depreciation and amortization expense for the three months ended
Depreciation and amortization expense for the nine months ended
General and administrative expenses
General and administrative expenses for the three months ended
General and administrative expenses for the nine months ended
Other operating expense
Other operating expense for the three and nine months ended
Interest expense
Interest expense for the three months ended
Interest expense for the nine months ended
Realized and unrealized loss/(gain) on derivative instruments, net
Realized and unrealized loss on derivative instruments, net for the three months ended
Realized and unrealized loss on derivative instruments, net for the nine months ended
Liquidity and Capital Resources
Nine months Ended | |||||||||
Net cash provided by/(used in) operating activities (1) | $ | 120,914,949 | $ | (2,346,990 | ) | ||||
Net cash used in investing activities (2) | (106,767,451 | ) | (17,529,527 | ) | |||||
Net cash provided by financing activities (3) | 22,648,099 | 46,027,292 | |||||||
Net increase in cash, cash equivalents and restricted cash | 36,795,597 | 26,150,775 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 88,848,771 | 59,130,285 | |||||||
Cash, cash equivalents and restricted cash at end of period | $ | 125,644,368 | $ | 85,281,060 |
(1) Net cash provided by operating activities for the nine months ended
(2) Net cash used in investing activities for the nine months ended
(3) Net cash provided by financing activities for the nine months ended
As of
As of
On
Capital Expenditures and Drydocking
Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels, which are expected to enhance the revenue earning capabilities and safety of the vessels.
In addition to acquisitions that we may undertake in future periods, the Company’s other major capital expenditures include funding the Company’s program of regularly scheduled drydocking necessary to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its drydocking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years for vessels older than 15 years and five years for vessels younger than 15 years. Funding of these requirements is anticipated to be met with cash from operations. We anticipate that this process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating 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. In the nine months ended
The following table represents 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) | |||||||||||
Quarter Ending | Off-hire Days(2) | BWTS | Drydocks | Vessel Upgrades(3) | |||||||
|
319 | $ | 3.3 | $ | 5.5 | $ | 1.2 | ||||
|
252 | 2.4 | 4.6 | 0.8 | |||||||
|
189 | 0.4 | 1.2 | 0.4 | |||||||
|
76 | — | 0.2 | — |
(1) Actual costs will vary based on various factors, including where the drydockings are actually performed. |
(2) Actual duration of off-hire days will vary based on the age and condition of the vessel, yard schedules and other factors. |
(3) Vessel upgrades represents capex 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 and other data for the periods indicated below.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Revenues, net | $ | 183,392,700 | $ | 68,182,301 | $ | 409,815,454 | $ | 199,952,404 | |||||||
Voyage expenses | 30,272,949 | 19,627,919 | 81,410,602 | 69,960,025 | |||||||||||
Vessel operating expenses | 28,125,682 | 21,748,531 | 73,323,785 | 65,680,913 | |||||||||||
Charter hire expenses | 10,723,737 | 5,060,503 | 25,373,501 | 15,820,809 | |||||||||||
Depreciation and amortization | 13,570,361 | 12,617,803 | 39,187,344 | 37,587,477 | |||||||||||
General and administrative expenses | 7,948,037 | 7,995,715 | 23,559,217 | 22,724,190 | |||||||||||
Other operating expense | 791,572 | — | 2,311,816 | — | |||||||||||
Operating lease impairment | — | — | — | 352,368 | |||||||||||
(Gain)/loss on sale of vessels | (3,962,093 | ) | 389,207 | (3,962,093 | ) | 389,207 | |||||||||
Total operating expenses | 87,470,245 | 67,439,678 | 241,204,172 | 212,514,989 | |||||||||||
Operating income/(loss) | 95,922,455 | 742,623 | 168,611,282 | (12,562,585 | ) | ||||||||||
Interest expense | 8,511,117 | 8,954,200 | 25,561,676 | 26,883,094 | |||||||||||
Interest income | (19,533 | ) | (23,644 | ) | (52,831 | ) | (236,633 | ) | |||||||
Loss on debt extinguishment | 99,033 | — | 99,033 | — | |||||||||||
Realized and unrealized loss/(gain) on derivative instruments, net | 8,990,568 | 2,971,353 | 45,587,799 | (4,030,674 | ) | ||||||||||
Total other expense, net | 17,581,185 | 11,901,909 | 71,195,677 | 22,615,787 | |||||||||||
Net income/(loss) | $ | 78,341,270 | $ | (11,159,286 | ) | $ | 97,415,605 | $ | (35,178,372 | ) | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 12,802,401 | 10,279,698 | 12,237,288 | 10,274,906 | |||||||||||
Diluted | 15,936,374 | 10,279,698 | 15,354,481 | 10,274,906 | |||||||||||
Per share amounts: | |||||||||||||||
Basic income/(loss) | $ | 6.12 | $ | (1.09 | ) | $ | 7.96 | $ | (3.42 | ) | |||||
Diluted income/(loss) | $ | 4.92 | $ | (1.09 | ) | $ | 6.34 | $ | (3.42 | ) | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 100,011,694 | $ | 69,927,594 | |||
Restricted cash – current | 25,557,674 | 18,846,177 | |||||
Accounts receivable, net of a reserve of |
24,243,815 | 13,843,480 | |||||
Prepaid expenses | 4,638,401 | 3,182,815 | |||||
Inventories | 17,091,901 | 11,624,833 | |||||
Collateral on derivatives | 31,369,664 | — | |||||
Other current assets | 1,689,972 | 839,881 | |||||
Total current assets | 204,603,121 | 118,264,780 | |||||
Noncurrent assets: | |||||||
Vessels and vessel improvements, at cost, net of accumulated depreciation of |
898,405,068 | 810,713,959 | |||||
Advance for vessel purchase | 2,200,000 | 3,250,000 | |||||
Operating lease right-of-use assets | 22,845,697 | 7,540,871 | |||||
Other fixed assets, net of accumulated depreciation of |
309,625 | 489,179 | |||||
Restricted cash – noncurrent | 75,000 | 75,000 | |||||
Deferred drydock costs, net | 28,343,436 | 24,153,776 | |||||
Advances for ballast water systems and other assets | 5,875,314 | 2,639,491 | |||||
Total noncurrent assets | 958,054,140 | 848,862,276 | |||||
Total assets | $ | 1,162,657,261 | $ | 967,127,056 | |||
LIABILITIES & STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 15,169,624 | $ | 10,589,970 | |||
Accrued interest | 7,075,532 | 4,690,135 | |||||
Other accrued liabilities | 14,660,495 | 11,747,064 | |||||
Fair value of derivatives – current | 24,381,090 | 481,791 | |||||
Current portion of operating lease liabilities | 21,094,309 | 7,615,371 | |||||
Unearned charter hire revenue | 17,045,647 | 8,072,295 | |||||
Holdco Revolving Credit Facility, net of debt issuance costs | 23,821,677 | — | |||||
Current portion of long-term debt | 42,666,521 | 39,244,297 | |||||
Total current liabilities | 165,914,895 | 82,440,923 | |||||
Noncurrent liabilities: | |||||||
Norwegian Bond Debt, net of debt discount and debt issuance costs | 166,351,589 | 169,290,230 | |||||
Super Senior Facility, net of debt issuance costs | — | 14,896,357 | |||||
New Ultraco Debt Facility, net of debt issuance costs | 121,182,097 | 132,083,949 | |||||
Convertible Bond Debt, net of debt discount and debt issuance costs | 99,813,315 | 96,660,485 | |||||
Fair value of derivatives – noncurrent | — | 650,607 | |||||
Noncurrent portion of operating lease liabilities | 1,744,619 | 686,422 | |||||
Total noncurrent liabilities | 389,091,620 | 414,268,050 | |||||
Total liabilities | 555,006,515 | 496,708,973 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, |
— | — | |||||
Common stock, |
128,640 | 116,618 | |||||
Additional paid-in capital | 982,652,311 | 943,571,685 | |||||
Accumulated deficit | (374,722,217 | ) | (472,137,822 | ) | |||
Accumulated other comprehensive loss | (407,988 | ) | (1,132,398 | ) | |||
Total stockholders’ equity | 607,650,746 | 470,418,083 | |||||
Total liabilities and stockholders’ equity | $ | 1,162,657,261 | $ | 967,127,056 | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended | |||||||
Cash flows from operating activities: | |||||||
Net income/(loss) | $ | 97,415,605 | $ | (35,178,372 | ) | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||
Depreciation | 32,951,082 | 32,085,266 | |||||
Amortization of operating lease right-of-use assets | 10,535,980 | 9,388,238 | |||||
Amortization of deferred drydocking costs | 6,236,262 | 5,502,211 | |||||
Amortization of debt discount and debt issuance costs | 5,442,978 | 4,654,871 | |||||
Loss on debt extinguishment | 99,033 | — | |||||
(Gain)/loss on sale of vessels | (3,962,093 | ) | 389,207 | ||||
Operating lease impairment | — | 352,368 | |||||
Net unrealized loss on fair value of derivatives | 24,193,472 | 2,677,003 | |||||
Stock-based compensation expense | 2,235,279 | 2,300,444 | |||||
Drydocking expenditures | (10,736,908 | ) | (10,830,172 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts payable | 4,638,944 | (4,135,537 | ) | ||||
Accounts receivable | (10,645,335 | ) | 2,956,653 | ||||
Accrued interest | 2,385,397 | 1,850,383 | |||||
Inventories | (5,467,068 | ) | 4,130,347 | ||||
Operating lease liabilities current and noncurrent | (11,303,671 | ) | (9,915,541 | ) | |||
Collateral on derivatives | (31,369,664 | ) | — | ||||
Other current and noncurrent assets | (1,149,973 | ) | (5,905,400 | ) | |||
Other accrued liabilities | 1,897,863 | (5,872,683 | ) | ||||
Prepaid expenses | (1,455,586 | ) | 1,906,748 | ||||
Unearned charter hire revenue | 8,973,352 | 1,296,976 | |||||
Net cash provided by/(used in) operating activities | 120,914,949 | (2,346,990 | ) | ||||
Cash flows from investing activities: | |||||||
Purchase of vessels and vessel improvements | (109,384,938 | ) | (605,660 | ) | |||
Advance for vessel purchase | (2,200,000 | ) | — | ||||
Purchase of scrubbers and ballast water systems | (4,557,463 | ) | (25,224,068 | ) | |||
Proceeds from hull and machinery insurance claims | 245,000 | 3,749,779 | |||||
Proceeds from sale of vessel | 9,159,077 | 4,594,081 | |||||
Purchase of other fixed assets | (29,127 | ) | (43,659 | ) | |||
Net cash used in investing activities | (106,767,451 | ) | (17,529,527 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from New Ultraco Debt Facility | 16,500,000 | 22,550,000 | |||||
Repayment of Norwegian Bond Debt | (4,000,000 | ) | (4,000,000 | ) | |||
Repayment of term loan under New Ultraco Debt Facility | (24,258,223 | ) | (20,923,319 | ) | |||
Repayment of revolver loan under New Ultraco Debt Facility | (55,000,000 | ) | (20,000,000 | ) | |||
Repayment of revolver loan under Super Senior Facility | (15,000,000 | ) | — | ||||
Proceeds from revolver loan under New Ultraco Debt Facility | 55,000,000 | 55,000,000 | |||||
Proceeds from revolver loan under Super Senior Facility | — | 15,000,000 | |||||
Proceeds from Holdco Revolving Credit Facility | 24,000,000 | — | |||||
Proceeds from issuance of shares under ATM Offering, net of commissions | 27,242,417 | — | |||||
Cash received from exercise of stock options | 55,578 | — | |||||
Cash used to settle net share equity awards | (985,686 | ) | (1,161,301 | ) | |||
Equity offerings issuance costs | (291,830 | ) | — | ||||
Debt issuance costs paid to lenders on New Ultraco Debt Facility | (328,241 | ) | (381,471 | ) | |||
Debt issuance costs paid to lenders of Holdco Revolving Credit Facility | (285,893 | ) | — | ||||
Cash used to settle fractional shares | — | (12,513 | ) | ||||
Cash paid to bondholder upon conversion of Convertible Bond Debt | (23 | ) | — | ||||
Other financing costs | — | (44,104 | ) | ||||
Net cash provided by financing activities | 22,648,099 | 46,027,292 | |||||
Net increase in Cash, cash equivalents and restricted cash | 36,795,597 | 26,150,775 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 88,848,771 | 59,130,285 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 125,644,368 | $ | 85,281,060 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid during the period for interest | $ | 17,462,440 | $ | 20,377,697 | |||
Accruals for vessel purchases and vessel improvements included in Other accrued liabilities | $ | 499,578 | $ | — | |||
Accruals for scrubbers and ballast water treatment systems included in Accounts payable and Other accrued liabilities | $ | 3,258,545 | $ | 5,915,948 | |||
Accrual for issuance costs for ATM Offering included in Other accrued liabilities | $ | 104,080 | $ | — | |||
Accruals for debt issuance costs included in Accounts payable and Other accrued liabilities | $ | 508,768 | $ | 200,000 | |||
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
Non-GAAP Financial Measures
(1) Adjusted net income/(loss) and Adjusted Basic and Diluted income/(loss) per share
Adjusted net income/(loss) and Adjusted Basic and Diluted income/(loss) per share represents Net income and Basic and Diluted income/(loss) per share, respectively, as adjusted to exclude non-cash unrealized losses/(gains) on derivatives and loss on debt extinguishment. The Company utilizes derivative instruments such as FFAs to partially hedge against its underlying long physical position in ships (as represented by owned and third-party chartered-in vessels). The Company does not apply hedge accounting, and, as such, the mark-to-market gains/(losses) on forward hedge positions impact current quarter results, causing timing mismatches in the Statement of Operations. Additionally, we believe that loss on debt extinguishment is not representative of our normal business operations. We believe that Adjusted net income/(loss) and Adjusted income/(loss) 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/(loss) should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) by 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/(loss) to Adjusted net income/(loss):
Reconciliation of GAAP Net income/(loss) to Adjusted Net income/(loss)
Three Months Ended | Nine Months Ended | |||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||
Net income/(loss) | $ | 78,341,270 | $ | (11,159,286 | ) | $ | 97,415,605 | $ | (35,178,372 | ) | ||||
Adjustments to reconcile net income/(loss) to Adjusted net income/(loss): | ||||||||||||||
Loss on debt extinguishment | 99,033 | — | 99,033 | — | ||||||||||
Unrealized (gain)/loss on derivatives | (6,347,446 | ) | 1,942,386 | 24,193,472 | 2,860,403 | |||||||||
Adjusted Net income/(loss) | $ | 72,092,857 | $ | (9,216,900 | ) | $ | 121,708,110 | $ | (32,317,969 | ) | ||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 12,802,401 | 10,279,698 | 12,237,288 | 10,274,906 | ||||||||||
Diluted (1) | 15,936,374 | 10,279,698 | 15,354,481 | 10,274,906 | ||||||||||
Per share amounts: | ||||||||||||||
Basic adjusted net income/(loss) | $ | 5.63 | $ | (0.90 | ) | $ | 9.95 | $ | (3.15 | ) | ||||
Diluted adjusted net income/(loss)(1) | $ | 4.52 | $ | (0.90 | ) | $ | 7.93 | $ | (3.15 | ) | ||||
(1) The number of shares used in the Diluted income per share and Diluted adjusted net income per share calculation for the three and nine months ended
(2) EBITDA and Adjusted EBITDA
We define EBITDA as net income under GAAP adjusted for interest, income taxes, depreciation and amortization.
Our Adjusted EBITDA should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Our Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner.
Adjusted EBITDA represents EBITDA adjusted to exclude the items which represent certain non-cash, one-time and other items such as vessel impairment, unrealized loss/(gains) on derivative instruments, operating lease impairment, (gain)/loss on sale of vessels, loss on debt extinguishment and stock-based compensation expense that the Company believes are not indicative of the ongoing performance of its core operations. The Adjusted EBITDA for prior periods has been retroactively adjusted to exclude non-cash unrealized gains and losses on derivative instruments. The following table presents a reconciliation of our net income/(loss) to EBITDA and Adjusted EBITDA.
Reconciliation of GAAP Net income/(loss) to EBITDA and Adjusted EBITDA
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net income/(loss) | $ | 78,341,270 | $ | (11,159,286 | ) | $ | 97,415,605 | $ | (35,178,372 | ) | |||||
Adjustments to reconcile net income/(loss) to EBITDA: | |||||||||||||||
Interest expense | 8,511,117 | 8,954,200 | 25,561,676 | 26,883,094 | |||||||||||
Interest income | (19,533 | ) | (23,644 | ) | (52,831 | ) | (236,633 | ) | |||||||
Income taxes | — | — | — | — | |||||||||||
EBIT | 86,832,854 | (2,228,730 | ) | 122,924,450 | (8,531,911 | ) | |||||||||
Depreciation and amortization | 13,570,361 | 12,617,803 | 39,187,344 | 37,587,477 | |||||||||||
EBITDA | 100,403,215 | 10,389,073 | 162,111,794 | 29,055,566 | |||||||||||
Non-cash, one-time and other adjustments to EBITDA(1) | (9,433,038 | ) | 3,072,613 | 22,565,691 | 5,902,422 | ||||||||||
Adjusted EBITDA | $ | 90,970,177 | $ | 13,461,686 | $ | 184,677,485 | $ | 34,957,988 |
(1) One-time and other adjustments to EBITDA for the three and nine months ended
TCE revenue and TCE
Time charter equivalent (“TCE”) is a non-GAAP financial measure that is 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 as shipping revenues less voyage expenses and charter hire expenses and realized gains/(losses) on FFAs and bunker swaps, divided by the number of owned available days. TCE provides additional meaningful information in conjunction with shipping revenues, 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 financial performance. The Company’s calculation of TCE may not be comparable to that reported by other companies. The Company calculates relative performance by comparing TCE against the Baltic Supramax Index (“BSI”) adjusted for commissions and fleet makeup. 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.
The following table presents the reconciliation of revenues, net to TCE:
Reconciliation of Revenues, net to TCE
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Revenues, net | $ | 183,392,700 | $ | 68,182,301 | $ | 409,815,454 | $ | 199,952,404 | |||||||
Less: | |||||||||||||||
Voyage expenses | (30,272,949 | ) | (19,627,919 | ) | (81,410,602 | ) | (69,960,025 | ) | |||||||
Charter hire expenses | (10,723,737 | ) | (5,060,503 | ) | (25,373,501 | ) | (15,820,809 | ) | |||||||
Reversal of one legacy time charter (1) | — | (88,080 | ) | (854,156 | ) | 332,676 | |||||||||
Realized (loss)/gain on FFAs and bunker swaps | (15,338,015 | ) | (1,028,967 | ) | (21,394,327 | ) | 6,891,076 | ||||||||
TCE revenue | $ | 127,057,999 | $ | 42,376,832 | $ | 280,782,868 | $ | 121,395,322 | |||||||
Owned available days | 4,368 | 4,405 | 12,685 | 13,154 | |||||||||||
TCE | $ | 29,088 | $ | 9,620 | $ | 22,135 | $ | 9,229 |
(1) The lease term of the legacy time charter concluded in the third quarter of 2021.
Glossary of Terms:
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 recorded during a period.
Chartered-in under operating lease days: We define chartered-in under operating lease days as the aggregate number of days in a period during which we chartered-in vessels. Periodically, the Company charters in vessels on a single trip basis.
Available days: We define available days as the number of our ownership days and chartered-in 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 and other reasons which prevent the vessel from performing under the relevant charter party such as surveys, medical events, stowaway disembarkation, etc. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.
Operating days: We define operating days as the number of available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
Fleet utilization: We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at high utilization rates.
Definitions of capitalized terms related to our Indebtedness
Norwegian Bond Debt: Norwegian Bond Debt refers to the Senior Secured Bonds issued by
The Company issued a ten day call notice to redeem the outstanding bonds under the Norwegian Bond Debt at a redemption price of 102.475% of the nominal amount of each bond. Pursuant to the bond terms, the Company paid
New Ultraco Debt Facility: New Ultraco Debt Facility refers to senior secured credit facility for
Convertible Bond Debt: Convertible Bond Debt refers to
Super Senior Facility: Super Senior Facility refers to the credit facility for
Holdco Revolving Credit Facility: Holdco Revolving Credit Facility refers to the senior secured revolving credit facility for
Conference Call Information
As previously announced, members of Eagle Bulk’s senior management team will host a teleconference and webcast at
To participate in the teleconference, investors and analysts are invited to call 1 844-282-4411 in the
A replay will be available following the call from
About
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, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. 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.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination of historical operating trends, data contained in our records and other data available from third parties. Although
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes as a result of COVID-19, including the availability and effectiveness of vaccines on a widespread basis and the impact of any mutations of the virus, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in vessel operating expenses, including drydocking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to perform their obligations under sales agreements, charter contracts, and other agreements on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by
CONTACT
Company Contact:
Chief Financial Officer
Tel. +1 203-276-8100
Email: mailto:[email protected]
Media:
Tel. +1 212-359-2228
Source: Eagle Bulk Shipping Inc.