NEWPORT,
R.I., Aug. 9, 2023 /PRNewswire/ -- 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, 2023.
SECOND QUARTER 2023 RESULTS
(As compared to the
second quarter 2022)
- Net income attributable to Pangaea of $2.8 million, or $0.06 per diluted share
- Adjusted net income attributable to Pangaea of $4.6 million, or $0.10 per diluted share
- Operating cash flow of $2.0
million, a decrease of 95% y/y
- Adjusted EBITDA of $15.9 million,
a decrease of 64% y/y
- Time Charter Equivalent ("TCE") rates earned by Pangaea of
$15,558 per day, a decline of 43%
y/y
- Pangaea's TCE rates exceeded the average Baltic Panamax and
Supramax indices by approximately 49%
- Ratio of net debt to trailing twelve-month Adjusted EBITDA of
2.1x
- Completed the strategic acquisition of marine port terminal
operations, expanding logistics service offerings
- Expanded owned vessel fleet to 25 through the acquisition of
the 61,000 dwt Bulk Prudence
For the second quarter ended June 30, 2023, Pangaea
reported non-GAAP adjusted net income of $4.6 million, or $0.10 per diluted share, on total revenue of
$118.1 million. Second quarter TCE
rates declined 43% on a year-over-year basis, while total shipping
days, which include both voyage and time charter days, declined 14%
to 4,056 days, when compared to the year-ago period.
The TCE earned was $15,558 per day
for the three months ended June 30, 2023, compared to an
average of $27,139 per day for the
same period in 2022. During the second quarter 2023, the Company's
average TCE rate exceeded the benchmark average Baltic Panamax and
Supramax indices by approximately 49%, supported by Pangaea's
long-term contracts of affreightment ("COAs"), specialized fleet,
and cargo-focused strategy.
Total Adjusted EBITDA decreased 64% to $15.9 million in the second quarter, as demand
weakness negatively impacted market rates. Adjusted EBITDA margin
declined to 9.0% in the second quarter 2023, when compared to the
year-ago period, driven by lower market rates.
As of June 30, 2023, the Company had $84.3 million in cash and equivalents. Total
debt, including lease finance obligations was $283 million. At the end of the second quarter
2023, the Company's net debt to trailing twelve-month adjusted
EBITDA was at 2.1x. During the three months ended June 30,
2023, the Company repaid $3.3 million
of long-term debt, $4.1 million of
finance leases, and paid $4.5 million
of cash dividends.
As of August 8th the Company has
booked approximately 3,500 total shipping days generating a TCE of
$16,700 per day for the third
quarter.
The Company's Board of Directors declared a quarterly cash
dividend of $0.10 per common share,
to be paid on September 15, 2023, to
all shareholders of record as of September
1, 2023.
MANAGEMENT COMMENTARY
"During a period of softer dry bulk rates, our flexible
chartered-in strategy has positioned Pangaea to consistently
realize a premium TCE rate well above the benchmark indices,"
stated Mark Filanowski, Chief
Executive Officer of Pangaea Logistics Solutions. "While on a
year-to-date basis, excess global dry bulk shipping capacity has
resulted in lower overall market rates, our TCE rate exceeded the
broader market by almost 50% in the second quarter, further
highlighting the durability of our business model. In the
third quarter, we anticipate a sequential improvement in our
results as we enter peak demand season in the Arctic. At this time,
all of our Ice Class 1A vessels are fully booked through October,
positioning us to realize above-market rates as we enter the second
half of the year."
"Pangaea continues to maintain a disciplined capital allocation
strategy designed to drive long-term value creation for our
shareholders," continued Filanowski. "During the second quarter, we
completed the acquisition of the 61,000 dwt Bulk Prudence, which we
purchased with cash-on-hand. In addition, we closed on the
previously announced acquisition of port terminal operations in
Fort Lauderdale, Florida and
Baltimore, Maryland, positioning
us to further expand our on-shore capabilities as we develop an
integrated transportation and logistics platform of scale. Finally,
we continue to return capital to shareholders through a consistent
quarterly cash dividend, with more than $9
million having been paid to shareholders on a year-to-date
basis. Despite broader market softness, our premium rate
model positions us to support a our return of capital strategy, in
line with our holistic focus on total shareholder returns."
"Looking ahead, we remain optimistic about the fundamentals in
the dry bulk market with a historically low order book and a stable
demand outlook.," concluded Filanowski. "Entering the second
half of the year, usually our strongest season, we are well
positioned to drive improved utilization of our fleet and logistics
operations. At the same time, we will continue to evaluate
strategic investments in complementary assets that further enhance
our unique value proposition, drive margin expansion, and support
profitable growth for our shareholders."
STRATEGIC UPDATE
Pangaea remains committed to developing a leading dry bulk
logistics and transportation services company of scale, providing
its customers with specialized shipping and supply chain and
logistics offerings in commodity and niche markets, which drive
premium returns measured in time charter equivalent per
day.
Leverage integrated shipping and logistics model. In
addition to operating the largest high ice class dry bulk fleet of
Panamax and post-Panamax vessels globally, Pangaea also performs
stevedoring services, together with port and terminal operations
capabilities. In June 2023, Pangaea
closed on the acquisition of marine port terminal operations in
Port Everglades/Ft. Lauderdale,
Port of Palm Beach, Florida, and
Port of Baltimore, Maryland. With
this acquisition, Pangaea strategically expands its North American
terminal network to include the mid-Atlantic and southeastern
United States. The acquisition
provides Pangaea with additional dry bulk distribution capabilities
within growing commerce centers, while augmenting its integrated
ocean freight and shoreside solutions offering. The Company is
actively leveraging its expanding footprint to grow its onshore
relationships with new and existing customers.
Continue to drive strong fleet utilization. In the
second quarter, Pangaea's 25 owned vessels were fully utilized and
supplemented with an average of 20 chartered-in vessels to support
cargo and COA commitments. Utilizing its nimble fleet approach, the
Company reduced its exposure to the market by redelivering
chartered-in vessels and reducing its average chartered-in fleet
from 25 vessels on average during 2022 to 20 vessels in the second
quarter 2023. In light of continued softness in the market, the
Company was able to continue to meet customer demands by
maintaining its chartered-in fleet at 20 vessels.
Continue to drive fleet upgrades and renewals. In
June 2023, Pangaea completed the
acquisition of the 61,000 dwt Bulk Prudence in the second-hand
market for $26.6 million cash.
Looking ahead, the Company intends to opportunistically manage its
fleet with the purpose of maximizing TCE rates, while continuing to
support client requirements on an on-demand basis.
SECOND QUARTER 2023 CONFERENCE CALL
The Company's management team will host a conference call to
discuss the Company's financial results on Thursday, August 10, 2023 at 8:00 a.m., Eastern Time (ET). Accompanying
presentation materials will be available in the Investor Relations
section of the Company's website at
https://www.pangaeals.com/investors/. To listen to a live
broadcast, go to the site at least 15 minutes prior to the
scheduled start time in order to register, download, and install
any necessary audio software.
To participate in the live teleconference:
Domestic Live:
1-800-225-9448
International Live:
1-203-518-9708
Conference ID:
PANLQ223
To listen to a replay of the teleconference, which will be
available through August 17,
2023:
Domestic Replay:
1-800-934-5153
International Replay: 1-402-220-1182
Pangaea Logistics
Solutions Ltd.
Consolidated
Statements of Operations
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Voyage
revenue
|
$
110,465,557
|
|
$
173,189,073
|
|
$
218,415,680
|
|
$
349,525,824
|
Charter
revenue
|
7,090,440
|
|
22,354,883
|
|
12,839,392
|
|
37,780,535
|
Terminal &
Stevedore Revenue
|
519,657
|
|
—
|
|
519,657
|
|
—
|
Total
revenue
|
118,075,654
|
|
195,543,956
|
|
231,774,729
|
|
387,306,359
|
Expenses:
|
|
|
|
|
|
|
|
Voyage
expense
|
54,459,633
|
|
67,907,824
|
|
111,274,264
|
|
133,158,291
|
Charter hire
expense
|
29,125,662
|
|
65,713,016
|
|
51,716,502
|
|
143,424,623
|
Vessel operating
expense
|
13,210,851
|
|
12,929,700
|
|
26,817,666
|
|
26,117,533
|
Terminal
& Stevedore Expenses
|
374,582
|
|
—
|
|
374,582
|
|
—
|
General and
administrative
|
5,923,159
|
|
5,137,387
|
|
11,614,892
|
|
10,418,775
|
Depreciation and
amortization
|
7,126,995
|
|
7,293,433
|
|
14,453,855
|
|
14,594,852
|
Loss on impairment of
vessel
|
—
|
|
—
|
|
—
|
|
3,007,809
|
Loss on sale of
vessel
|
—
|
|
318,032
|
|
1,172,196
|
|
318,032
|
Total
expenses
|
110,220,882
|
|
159,299,392
|
|
217,423,957
|
|
331,039,915
|
|
|
|
|
|
|
|
|
Income from
operations
|
7,854,772
|
|
36,244,564
|
|
14,350,772
|
|
56,266,444
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(4,125,720)
|
|
(3,673,064)
|
|
(8,376,234)
|
|
(7,044,776)
|
Interest
income
|
1,042,564
|
|
38,332
|
|
2,092,410
|
|
38,871
|
Income attributable to
Non-controlling interest recorded as long-term liability interest
expense
|
(905,337)
|
|
(1,702,674)
|
|
(760,600)
|
|
(3,543,007)
|
Unrealized (loss) gain
on derivative instruments, net
|
(1,348,284)
|
|
(3,501,649)
|
|
(1,771,853)
|
|
3,998,665
|
Other
income
|
248,863
|
|
81,231
|
|
635,275
|
|
218,438
|
Total other (expense)
income, net
|
(5,087,914)
|
|
(8,757,824)
|
|
(8,181,002)
|
|
(6,331,809)
|
|
|
|
|
|
|
|
|
Net income
|
2,766,858
|
|
27,486,740
|
|
6,169,770
|
|
49,934,635
|
Loss (income)
attributable to non-controlling interests
|
77,682
|
|
(2,454,307)
|
|
149,037
|
|
(4,734,237)
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
$
2,844,540
|
|
$ 25,032,433
|
|
$
6,318,807
|
|
$ 45,200,398
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.06
|
|
$
0.56
|
|
$
0.14
|
|
$
1.02
|
Diluted
|
$
0.06
|
|
$
0.56
|
|
$
0.14
|
|
$
1.00
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
44,775,438
|
|
44,430,487
|
|
44,744,039
|
|
44,411,025
|
Diluted
|
45,127,972
|
|
45,070,533
|
|
45,122,019
|
|
45,129,077
|
Pangaea Logistics
Solutions Ltd.
Consolidated Balance
Sheets
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
(unaudited)
|
|
(audited)
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
84,295,860
|
|
$
128,384,606
|
Accounts receivable
(net of allowance of $5,497,118 and $4,367,848 at June 30,
2023 and December 31, 2022, respectively)
|
42,822,372
|
|
36,755,149
|
Bunker
inventory
|
27,452,209
|
|
29,104,436
|
Advance hire, prepaid
expenses and other current assets
|
32,359,905
|
|
28,266,831
|
Total current
assets
|
186,930,346
|
|
222,511,022
|
|
|
|
|
Fixed assets,
net
|
486,380,572
|
|
476,524,752
|
Finance lease right of
use assets, net
|
42,050,361
|
|
43,921,569
|
Goodwill
|
3,104,800
|
|
—
|
Other non-current
Assets
|
6,106,786
|
|
5,284,127
|
Total
assets
|
$
724,572,865
|
|
$
748,241,470
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
$
46,705,982
|
|
$
38,554,131
|
Deferred
revenue
|
14,500,065
|
|
20,883,958
|
Current portion of
secured long-term debt
|
32,259,599
|
|
15,782,530
|
Current portion of
finance lease liabilities
|
16,423,228
|
|
16,365,075
|
Dividend
payable
|
808,862
|
|
626,178
|
Total current
liabilities
|
110,697,736
|
|
92,211,872
|
|
|
|
|
Secured long-term debt,
net
|
73,441,002
|
|
98,819,739
|
Finance lease
liabilities, net
|
160,627,406
|
|
168,513,939
|
Long-term liabilities -
other
|
18,234,990
|
|
19,974,390
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized and no shares
issued
or outstanding
|
—
|
|
—
|
Common stock, $0.0001
par value, 100,000,000 shares authorized; 46,466,622
shares issued and outstanding at June 30, 2023; 45,898,395 shares
issued and
outstanding at December 31, 2022
|
4,648
|
|
4,590
|
Additional paid-in
capital
|
163,890,246
|
|
162,894,080
|
Retained
earnings
|
148,330,406
|
|
151,327,392
|
Total Pangaea
Logistics Solutions Ltd. equity
|
312,225,300
|
|
314,226,062
|
Non-controlling
interests
|
49,346,431
|
|
54,495,468
|
Total stockholders'
equity
|
361,571,731
|
|
368,721,530
|
Total liabilities
and stockholders' equity
|
$
724,572,865
|
|
$
748,241,470
|
Pangaea Logistics Solutions,
Ltd.
Consolidated Statements of Cash
Flows
|
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
Operating
activities
|
Unaudited
|
|
Unaudited
|
Net income
|
$
6,169,770
|
|
$
49,934,635
|
Adjustments to
reconcile net income to net cash provided by operations:
|
|
|
|
Depreciation and
amortization expense
|
14,453,855
|
|
14,594,852
|
Amortization of
deferred financing costs
|
471,582
|
|
499,703
|
Amortization of
prepaid rent
|
60,564
|
|
60,969
|
Unrealized loss (gain)
on derivative instruments
|
1,771,853
|
|
(3,998,665)
|
Income from equity
method investee
|
(635,275)
|
|
(218,438)
|
Earnings attributable
to non-controlling interest recorded as other long term
liability
|
760,600
|
|
3,543,007
|
Provision for doubtful
accounts
|
1,129,270
|
|
518,796
|
Loss on impairment of
vessel
|
—
|
|
3,007,809
|
Loss on sale of
vessel
|
1,172,196
|
|
318,032
|
Drydocking
costs
|
(3,361,280)
|
|
(4,858,510)
|
Share-based
compensation
|
1,123,507
|
|
1,138,785
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(7,196,493)
|
|
12,640,090
|
Bunker
inventory
|
1,652,227
|
|
(25,675,924)
|
Advance hire, prepaid
expenses and other current assets
|
(3,503,097)
|
|
12,286,477
|
Accounts payable,
accrued expenses and other current liabilities
|
5,894,024
|
|
13,292,238
|
Deferred
revenue
|
(6,383,893)
|
|
(7,858,791)
|
Net cash provided by
operating activities
|
13,579,410
|
|
69,225,065
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of vessels and
vessel improvements
|
(27,039,525)
|
|
(18,501,875)
|
Purchase of fixed
assets and equipment
|
—
|
|
(71,416)
|
Contributions to
non-consolidated subsidiaries
|
—
|
|
(18,505)
|
Proceeds from sale of
vessel
|
8,933,700
|
|
8,400,000
|
Acquisitions, net of
cash acquired
|
(7,200,000)
|
|
—
|
Dividends received from
equity method investments
|
1,627,500
|
|
—
|
Net cash used in
investing activities
|
(23,678,325)
|
|
(10,191,796)
|
|
|
|
|
Financing
activities
|
|
|
|
Payments of financing
fees and issuance costs
|
—
|
|
(331,317)
|
Payments of long-term
debt
|
(9,096,390)
|
|
(9,010,117)
|
Proceeds from finance
leases
|
—
|
|
15,000,000
|
Payments of finance
lease obligations
|
(8,133,049)
|
|
(7,808,388)
|
Dividends paid to
non-controlling interests
|
(5,000,000)
|
|
(5,000,000)
|
Accrued common stock
dividends paid
|
(9,133,109)
|
|
(5,629,329)
|
Cash paid for incentive
compensation shares relinquished
|
(127,283)
|
|
(287,630)
|
Payments to
non-controlling interest recorded as long-term liability
|
(2,500,000)
|
|
—
|
Net cash used in
financing activities
|
(33,989,831)
|
|
(13,066,781)
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents
|
(44,088,746)
|
|
45,966,488
|
Cash and cash
equivalents at beginning of period
|
128,384,606
|
|
56,208,902
|
Cash and cash
equivalents at end of period
|
$
84,295,860
|
|
$
102,175,390
|
Pangaea Logistics Solutions
Ltd.
Reconciliation of Non-GAAP
Measures
(unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net Transportation
and Service Revenue
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
$
13,805,410
|
|
$
41,699,983
|
|
$
27,192,817
|
|
$
70,011,060
|
Add:
|
|
|
|
|
|
|
|
|
Vessel Depreciation and
Amortization
|
|
7,099,516
|
|
7,293,433
|
|
14,398,898
|
|
14,594,852
|
Net transportation and
service revenue
|
|
$
20,904,926
|
|
$
48,993,416
|
|
$
41,591,715
|
|
$
84,605,912
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net Income
|
|
2,766,858
|
|
27,486,740
|
|
6,169,770
|
|
49,934,635
|
Interest expense,
net
|
|
3,083,156
|
|
3,634,732
|
|
6,283,824
|
|
7,005,905
|
Income attributable to
Non-controlling interest recorded as long-term liability interest
expense
|
|
905,337
|
|
1,702,674
|
|
760,600
|
|
3,543,007
|
Depreciation and
amortization
|
|
7,126,995
|
|
7,293,433
|
|
14,453,855
|
|
14,594,852
|
EBITDA
|
|
13,882,346
|
|
40,117,579
|
|
27,668,049
|
|
75,078,399
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
vessels
|
|
—
|
|
—
|
|
—
|
|
3,007,809
|
Loss on sale of
vessels
|
|
—
|
|
318,032
|
|
1,172,196
|
|
318,032
|
Share-based
compensation
|
|
267,073
|
|
310,979
|
|
1,123,507
|
|
1,138,785
|
Unrealized loss (gain)
on derivative instruments, net
|
|
1,348,284
|
|
3,501,649
|
|
1,771,853
|
|
(3,998,665)
|
Other non-recurring
items
|
|
425,702
|
|
—
|
|
425,702
|
|
—
|
Adjusted
EBITDA
|
|
$
15,923,405
|
|
$
44,248,239
|
|
$
32,161,307
|
|
$
75,544,360
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
2,844,540
|
|
$
25,032,433
|
|
$
6,318,807
|
|
$
45,200,398
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding - basic
|
|
44,775,438
|
|
44,430,487
|
|
44,744,039
|
|
44,411,025
|
Weighted average number
of common shares outstanding - diluted
|
|
45,127,972
|
|
45,070,533
|
|
45,122,019
|
|
45,129,077
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
$
0.06
|
|
$
0.56
|
|
$
0.14
|
|
$
1.02
|
Earnings per common
share - diluted
|
|
$
0.06
|
|
$
0.56
|
|
$
0.14
|
|
$
1.00
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
|
|
|
Net Income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
2,844,540
|
|
$
25,032,433
|
|
$
6,318,807
|
|
$
45,200,398
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Add: loss on
impairment of vessels
|
|
—
|
|
—
|
|
—
|
|
3,007,809
|
Loss on sale of
vessels
|
|
—
|
|
318,032
|
|
1,172,196
|
|
318,032
|
Unrealized loss (gain)
on derivative instruments
|
|
1,348,284
|
|
3,501,649
|
|
1,771,853
|
|
(3,998,665)
|
Other non-recurring
items
|
|
425,702
|
|
$
—
|
|
425,702
|
|
—
|
Non-GAAP adjusted net
income attributable to Pangaea Logistics Solutions Ltd.
|
|
$
4,618,526
|
|
$
28,852,114
|
|
$
9,688,558
|
|
$
44,527,574
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
|
44,775,438
|
|
44,430,487
|
|
44,744,039
|
|
44,411,025
|
Weighted average number
of common shares - diluted
|
|
45,127,972
|
|
45,070,533
|
|
45,122,019
|
|
45,129,077
|
|
|
|
|
|
|
|
|
|
Adjusted EPS -
basic
|
|
$
0.10
|
|
$
0.65
|
|
$
0.22
|
|
$
1.00
|
Adjusted EPS -
diluted
|
|
$
0.10
|
|
$
0.64
|
|
$
0.21
|
|
$
0.99
|
INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used
herein, "GAAP" refers to accounting principles generally accepted
in the United States of America.
To supplement our consolidated financial statements prepared and
presented in accordance with GAAP, this earnings release discusses
non-GAAP financial measures, including non-GAAP net revenue and
non-GAAP adjusted EBITDA. This is considered a non-GAAP financial
measure as defined in Rule 101 of Regulation G promulgated by the
Securities and Exchange Commission. Generally, a non-GAAP financial
measure is a numerical measure of a company's historical or future
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. The presentation of this non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP.
We use non-GAAP financial measures for internal financial and
operational decision making purposes and as a means to evaluate
period-to-period comparisons of the performance and results of
operations of our core business. Our management believes that
non-GAAP financial measures provide meaningful supplemental
information regarding the performance of our core business by
excluding charges that are not incurred in the normal course of
business. Non-GAAP financial measures also facilitate management's
internal planning and comparisons to our historical performance and
liquidity. We believe certain non-GAAP financial measures are
useful to investors as they allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision making and are used by our institutional
investors and the analyst community to help them analyze the
performance and operational results of our core business.
Gross Profit. Gross profit represents total revenue
less net transportation and service revenue and less vessel
depreciation and amortization.
Net transportation and service revenue. Net
transportation and service revenue represents total revenue less
the total direct costs of transportation and services, which
includes charter hire, voyage and vessel operating expenses and
terminal & stevedore expenses. Net transportation and service
revenue is included because it is used by management and certain
investors to measure performance by comparison to other logistic
service providers. Net transportation and service revenue is not an
item recognized by the generally accepted accounting principles in
the United States of America, or
U.S. GAAP, and should not be considered as an alternative to net
income, operating income, or any other indicator of a company's
operating performance required by U.S. GAAP. Pangaea's definition
of net transportation and service revenue used here may not be
comparable to an operating measure used by other
companies.
Adjusted EBITDA and adjusted EPS. Adjusted EBITDA
represents net income (or loss), determined in accordance with U.S.
GAAP, excluding interest expense, interest income, income taxes,
depreciation and amortization, loss on impairment, loss on sale and
leaseback of vessels, share-based compensation, other non-operating
income and/or expense and other non-recurring items, if any.
Earnings per share represents net income divided by the weighted
average number of common shares outstanding. Adjusted earnings per
share represents net income attributable to Pangaea Logistics
Solutions Ltd. plus, when applicable, loss on sale of vessel, loss
on sale and leaseback of vessel, loss on impairment of vessel,
unrealized gains and losses on derivative instruments, and certain
non-recurring charges, divided by the weighted average number of
shares of common stock.
There are limitations related to the use of net revenue versus
income from operations, adjusted EBITDA versus income from
operations, and adjusted EPS versus EPS calculated in accordance
with GAAP. In particular, Pangaea's definition of adjusted EBITDA
used here are not comparable to EBITDA.
The table set forth above provides a reconciliation of the
non-GAAP financial measures presented during the period to the most
directly comparable financial measures prepared in accordance with
GAAP.
About Pangaea Logistics Solutions Ltd.
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides
logistics services to a broad base of industrial customers who
require the transportation of a wide variety of dry bulk cargoes,
including grains, pig iron, hot briquetted iron, bauxite, alumina,
cement clinker, dolomite, and limestone. The Company addresses the
transportation needs of its customers with a comprehensive set of
services and activities, including cargo loading, cargo discharge,
vessel chartering, and voyage planning. Learn more at
www.pangaeals.com.
Investor Relations Contacts
Gianni Del
Signore
|
|
Stefan C.
Neely
|
Chief Financial
Officer
|
|
Vallum
Advisors
|
401-846-7790
|
|
|
Investors@pangaeals.com
|
|
PANL@val-adv.com
|
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The Company disclaims any obligation to publicly update
or revise these statements whether as a result of new information,
future events or otherwise, except as required by law. Such risks
and uncertainties include, without limitation, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for dry bulk shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors, as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at www.sec.gov.
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SOURCE Pangaea Logistics Solutions Ltd.