NEWPORT, RI, Aug. 8, 2024 /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, 2024.
SECOND QUARTER 2024 RESULTS
- Net income attributable to Pangaea of $3.7 million, or $0.08 per diluted share
- Adjusted net income attributable to Pangaea of $4.6 million, or $0.10 per diluted
share
- Operating cash flow of $9.0
million
- Adjusted EBITDA of $15.9
million
- Time Charter Equivalent ("TCE") rates earned by Pangaea of
$16,223 per day
- Pangaea's TCE rates exceeded the average Baltic Panamax and
Supramax indices by 7%
- Ratio of net debt to trailing twelve-month Adjusted EBITDA of
2.1x
- Expanded owned vessel fleet to 26 with the acquisitions of the
Bulk Brenton and Bulk Patience in third quarter
For the three months ended June 30,
2024, Pangaea reported non-GAAP adjusted net income of
$4.6 million, or $0.10 per diluted share, on total revenue of
$131.5 million. Second quarter TCE
rates increased 4% on a year-over-year basis, while total shipping
days, which include both voyage and time charter days, increased 2%
to 4,117 days, when compared to the year-ago period.
The TCE earned was $16,223 per day
for the three months ended June 30, 2024, compared to an
average of $15,558 per day for the
same period in 2023. During the second quarter ended June 30,
2024, the Company's average TCE rate exceeded the benchmark average
Baltic Panamax and Supramax indices by 7%, supported by Pangaea's
long-term contracts of affreightment ("COAs"), specialized fleet,
and cargo-focused strategy.
Total Adjusted EBITDA was $15.9
million in the second quarter and unchanged compared to the
prior year period. Total Adjusted EBITDA margin was 12.1% during
the second quarter of 2024, compared to 13.5% during the prior year
period. Second quarter Adjusted EBITDA performance relative to the
prior year period reflects the increase in market rates, which were
offset by higher charter hire and vessel operating expenses per
day.
As of June 30, 2024, the Company
had $77.9 million in cash and cash
equivalents. Total debt, including lease finance obligations was
$252.6 million. At the end of the
second quarter 2024, the ratio of net debt to trailing twelve-month
adjusted EBITDA was 2.1x, which was flat compared to the prior year
period. During the three months ended June
30, 2024, the Company repaid $3.6
million of finance leases, $4.6
million of long-term debt in conjunction with a refinancing,
and paid $4.5 million in cash
dividends.
On August 8, 2024, the Company's
Board of Directors declared a quarterly cash dividend of
$0.10 per common share, payable on
September 16, 2024, to all
shareholders of record as of September 2,
2024.
MANAGEMENT COMMENTARY
"Our second quarter results reflect consistent execution amid a
stable dry-bulk market, which enabled us to deliver continued
premium TCE returns," stated Mark
Filanowski, Chief Executive Officer of Pangaea Logistics
Solutions. "Our fleet remained well utilized during the second
quarter as we executed long-term contracts within our key Atlantic
trade routes. As we enter the peak demand period for our
specialized ice-class fleet operating in the Canadian Arctic
region, the stable market environment and our expanded fleet of
owned vessels positions us for strong performance in the second
half of the year."
"The global dry bulk market has proven to be resilient in the
face of recent global trade disruptions, which has resulted in a
more normal price environment compared to a year-ago," continued
Filanowski. "Within our key trade regions, economic activity
continues to support demand for our key bulk trades. Second hand
vessel values have increased substantially as dry bulk newbuilding
orders show continued weakness. Increased newbuilding prices,
higher interest rates, and uncertainty of the impact of emissions
regulations, have limited orders for new vessels. Going forward, we
expect the limited number of newbuild vessels entering the market
will provide a systemic catalyst for higher market rates going in
to 2025, as dry bulk capacity will become further constrained."
"Given the attractive macro backdrop for dry bulk economics, we
have been very focused on our capital deployment priorities,"
continued Filanowski. "During the quarter, we entered into an
agreement to acquire the Bulk Brenton and Bulk Patience, which will
enter our fleet during the third quarter. At the same time, we
refinanced two of our owned ships with new lenders and repaid over
$8 million in debt, which further
improves the flexibility of our balance sheet."
"Looking ahead, the third quarter represents a seasonally strong
period for demand in our niche Arctic trades and we expect that our
fleet of ice class vessels will be fully utilized during the third
quarter. Through today we've booked 3,298 shipping days at an
average TCE rate of $17,978 per day"
continued Filanowski. "Entering our period of peak demand, we will
remain focused on maximizing fleet utilization in order to deliver
premium asset returns, invest in profitable growth and deliver
consistent shareholder returns."
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. Since acquiring marine port terminal operations in
Port Everglades/Ft. Lauderdale,
Port of Palm Beach, Florida, and
Port of Baltimore, Maryland a year
ago, the Company has opportunistically deployed capital to support
continued organic growth of this business. During the second
quarter, the port and logistics business continued to build
momentum, delivering strong margins and profitability. Earlier in
the year, the Company launched an expansion of its terminal
operations in the Port of Tampa,
which is on track to be complete in the second half of 2025.
Continue to drive strong fleet utilization. In the
second quarter, Pangaea's 24 owned vessels were fully utilized and
supplemented with an average of 22 chartered-in vessels to support
cargo and COA commitments. During the quarter, the Company
announced the acquisition of two new vessels, which will expand the
owned vessel fleet to 26. These vessels will further position the
Company to maximize the utilization of its fleet and serve the
evolving needs of its customers.
Continue to upgrade fleet, while divesting older, non-core
assets. During the quarter, the Company entered into an
agreement to acquire the Bulk Brenton and Bulk Patience for a
combined purchase price of $56.6
million. These two 2016 built vessels represent an upgrade
to the composition of our fleet by increasing our environmentally
compliant fleet tonnage and improving our ability to meet customer
demand. Going forward, the Company intends to opportunistically
manage its fleet with the purpose of maximizing TCE rates, meeting
evolving regulatory requirements and supporting client cargo needs
on an on-demand basis.
SECOND QUARTER 2024 CONFERENCE CALL
The Company's management team will host a conference call to
discuss the Company's financial results on Friday, August 9, 2024 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 participate in the live teleconference:
|
|
Domestic
Live:
|
1-800-267-6316
|
International
Live:
|
1-203-518-9783
|
Conference ID:
|
PANLQ224
|
|
|
To listen to a replay of the teleconference, which will be
available through August 16,
2024:
Domestic
Replay:
|
1-800-938-2376
|
International
Replay:
|
1-402-220-1129
|
Pangaea Logistics
Solutions Ltd.
|
Consolidated
Statements of Operations
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
|
|
|
|
Voyage
revenue
|
$
124,095,728
|
|
$ 110,465,557
|
|
$
211,386,291
|
|
$
218,415,680
|
Charter
revenue
|
3,846,797
|
|
7,090,440
|
|
18,877,824
|
|
12,839,392
|
Terminal &
Stevedore Revenue
|
3,555,327
|
|
519,657
|
|
5,982,290
|
|
519,657
|
Total
revenue
|
131,497,852
|
|
118,075,654
|
|
236,246,405
|
|
231,774,729
|
Expenses:
|
|
|
|
|
|
|
|
Voyage
expense
|
61,150,855
|
|
54,459,633
|
|
98,265,519
|
|
111,274,264
|
Charter hire
expense
|
32,685,075
|
|
29,125,662
|
|
59,827,925
|
|
51,716,502
|
Vessel operating
expense
|
14,735,927
|
|
13,210,851
|
|
27,405,184
|
|
26,817,666
|
Terminal
& Stevedore Expenses
|
2,828,398
|
|
374,582
|
|
4,907,585
|
|
374,582
|
General and
administrative
|
5,029,696
|
|
5,923,159
|
|
12,307,699
|
|
11,614,892
|
Depreciation and
amortization
|
7,453,675
|
|
7,126,995
|
|
14,890,148
|
|
14,453,855
|
Loss on sale of
vessel
|
—
|
|
—
|
|
—
|
|
1,172,196
|
Total
expenses
|
123,883,626
|
|
110,220,882
|
|
217,604,060
|
|
217,423,957
|
|
|
|
|
|
|
|
|
Income from
operations
|
7,614,226
|
|
7,854,772
|
|
18,642,345
|
|
14,350,772
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(3,812,783)
|
|
(4,125,720)
|
|
(7,663,513)
|
|
(8,376,234)
|
Interest
income
|
665,362
|
|
1,042,564
|
|
1,540,446
|
|
2,092,410
|
Loss (Income)
attributable to Non-controlling interest
recorded as long-term liability interest expense
|
119,950
|
|
(905,337)
|
|
(695,152)
|
|
(760,600)
|
Unrealized (loss) gain
on derivative instruments, net
|
(927,503)
|
|
(1,348,284)
|
|
4,156,836
|
|
(1,771,853)
|
Other
income
|
334,248
|
|
248,863
|
|
678,172
|
|
635,275
|
Total other expense,
net
|
(3,620,726)
|
|
(5,087,914)
|
|
(1,983,211)
|
|
(8,181,002)
|
|
|
|
|
|
|
|
|
Net income
|
3,993,500
|
|
2,766,858
|
|
16,659,134
|
|
6,169,770
|
(Income) loss
attributable to non-controlling interests
|
(310,725)
|
|
77,682
|
|
(1,302,183)
|
|
149,037
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
$
3,682,775
|
|
$
2,844,540
|
|
$
15,356,951
|
|
$
6,318,807
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.08
|
|
$
0.06
|
|
$
0.34
|
|
$
0.14
|
Diluted
|
$
0.08
|
|
$
0.06
|
|
$
0.33
|
|
$
0.14
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
45,276,791
|
|
44,775,438
|
|
45,245,655
|
|
44,744,039
|
Diluted
|
46,028,902
|
|
45,127,972
|
|
45,922,272
|
|
45,122,019
|
Pangaea Logistics
Solutions Ltd.
|
Consolidated Balance
Sheets
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
(unaudited)
|
|
(audited)
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
77,946,955
|
|
$
99,037,866
|
Accounts receivable
(net of allowance of $6,494,900 and $5,657,837 at
June 30, 2024 and December 31, 2023,
respectively)
|
41,332,293
|
|
47,891,501
|
Inventories
|
28,889,890
|
|
16,556,266
|
Advance hire, prepaid
expenses and other current assets
|
33,182,103
|
|
28,340,246
|
Total current
assets
|
181,351,241
|
|
191,825,879
|
|
|
|
|
Fixed assets,
net
|
464,347,780
|
|
474,265,171
|
Advances for vessel
purchases
|
8,500,000
|
|
—
|
Finance lease right of
use assets, net
|
29,630,660
|
|
30,393,823
|
Goodwill
|
3,104,800
|
|
3,104,800
|
Other non-current
Assets
|
5,986,121
|
|
5,590,295
|
Total
assets
|
$
692,920,602
|
|
$
705,179,968
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
$
39,257,972
|
|
$
35,836,262
|
Deferred
revenue
|
10,064,097
|
|
15,629,886
|
Current portion of
secured long-term debt
|
12,049,931
|
|
30,751,726
|
Current portion of
finance lease liabilities
|
21,480,421
|
|
21,970,124
|
Dividend
payable
|
1,116,964
|
|
1,146,321
|
Total current
liabilities
|
83,969,385
|
|
105,334,319
|
|
|
|
|
Secured long-term debt,
net
|
78,474,348
|
|
68,446,309
|
Finance lease
liabilities, net
|
137,035,935
|
|
143,266,867
|
Long-term liabilities -
other
|
16,631,692
|
|
17,936,540
|
|
|
|
|
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;
46,902,091 shares issued and outstanding at June 30, 2024;
46,466,622
shares issued and outstanding at December 31, 2023
|
4,692
|
|
4,648
|
Additional paid-in
capital
|
166,521,852
|
|
164,854,546
|
Retained
earnings
|
165,003,909
|
|
159,026,799
|
Total Pangaea
Logistics Solutions Ltd. equity
|
331,530,453
|
|
323,885,993
|
Non-controlling
interests
|
45,278,789
|
|
46,309,940
|
Total stockholders'
equity
|
376,809,242
|
|
370,195,933
|
Total liabilities
and stockholders' equity
|
$
692,920,602
|
|
$
705,179,968
|
Pangaea Logistics
Solutions, Ltd.
|
Consolidated
Statements of Cash Flows
|
(unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
Operating
activities
|
|
|
|
Net income
|
$
16,659,134
|
|
$
6,169,770
|
Adjustments to
reconcile net income to net cash provided by operations:
|
|
|
|
Depreciation and
amortization expense
|
14,890,148
|
|
14,453,855
|
Amortization of
deferred financing costs
|
399,259
|
|
471,582
|
Amortization of
prepaid rent
|
60,933
|
|
60,564
|
Unrealized (gain) loss
on derivative instruments
|
(4,156,836)
|
|
1,771,853
|
Income from equity
method investee
|
(678,172)
|
|
(635,275)
|
Earnings attributable
to non-controlling interest recorded as other long term
liability
|
695,152
|
|
760,600
|
Provision for
doubtful accounts
|
837,063
|
|
1,129,270
|
Loss on impairment of
vessel
|
—
|
|
—
|
Loss on sale of
vessel
|
—
|
|
1,172,196
|
Drydocking
costs
|
(3,154,809)
|
|
(3,361,280)
|
Share-based
compensation
|
1,667,350
|
|
1,123,507
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
5,722,145
|
|
(7,196,493)
|
Inventories
|
(12,333,624)
|
|
1,652,227
|
Advance hire, prepaid
expenses and other current assets
|
(2,426,074)
|
|
(3,503,097)
|
Accounts payable,
accrued expenses and other current liabilities
|
5,339,639
|
|
5,894,024
|
Deferred
revenue
|
(5,565,789)
|
|
(6,383,893)
|
Net cash provided by
operating activities
|
17,955,519
|
|
13,579,410
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of vessels and
vessel improvements
|
(498,982)
|
|
(27,039,525)
|
Advances for vessel
purchases
|
(8,500,000)
|
|
—
|
Purchase of fixed
assets and equipment
|
(140,018)
|
|
—
|
Proceeds from sale of
vessel
|
—
|
|
8,933,700
|
Acquisitions, net of
cash acquired
|
—
|
|
(7,200,000)
|
Dividends received from
equity method investments
|
—
|
|
1,627,500
|
Net cash used in
investing activities
|
(9,139,000)
|
|
(23,678,325)
|
|
|
|
|
Financing
activities
|
|
|
|
Proceeds from long-term
debt
|
17,600,000
|
|
—
|
Payments of financing
fees and issuance costs
|
(866,801)
|
|
—
|
Payments of long-term
debt
|
(25,573,461)
|
|
(9,096,390)
|
Payments of finance
lease obligations
|
(7,324,636)
|
|
(8,133,049)
|
Dividends paid to
non-controlling interests
|
(2,333,334)
|
|
(5,000,000)
|
Cash dividends
paid
|
(9,409,198)
|
|
(9,133,109)
|
Cash paid for incentive
compensation shares relinquished
|
—
|
|
(127,283)
|
Payments to
non-controlling interest recorded as long-term liability
|
(2,000,000)
|
|
(2,500,000)
|
Net cash used in
financing activities
|
(29,907,430)
|
|
(33,989,831)
|
|
|
|
|
Net change in cash and
cash equivalents
|
(21,090,911)
|
|
(44,088,746)
|
Cash and cash
equivalents at beginning of period
|
99,037,866
|
|
128,384,606
|
Cash and cash
equivalents at end of period
|
$
77,946,955
|
|
$
84,295,860
|
Pangaea Logistics
Solutions Ltd.
|
Reconciliation of
Non-GAAP Measures
|
(unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net Transportation
and Service Revenue
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
$
12,671,400
|
|
$
13,805,410
|
|
$
31,005,001
|
|
$
27,192,817
|
Add:
|
|
|
|
|
|
|
|
|
Vessel Depreciation and
Amortization
|
|
7,426,197
|
|
7,099,516
|
|
14,835,191
|
|
14,398,898
|
Net transportation and
service revenue
|
|
$
20,097,597
|
|
$ 20,904,926
|
|
$
45,840,192
|
|
$
41,591,715
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net Income
|
|
3,993,500
|
|
2,766,858
|
|
16,659,134
|
|
6,169,770
|
Interest expense,
net
|
|
3,147,421
|
|
3,083,156
|
|
6,123,067
|
|
6,283,824
|
Income (loss)
attributable to Non-controlling interest recorded as
long-term liability interest expense
|
|
(119,950)
|
|
905,337
|
|
695,152
|
|
760,600
|
Depreciation and
amortization
|
|
7,453,675
|
|
7,126,995
|
|
14,890,148
|
|
14,453,855
|
EBITDA
|
|
14,474,646
|
|
13,882,346
|
|
38,367,501
|
|
27,668,049
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on sale of
vessels
|
|
—
|
|
—
|
|
—
|
|
1,172,196
|
Share-based
compensation
|
|
528,673
|
|
267,073
|
|
1,667,350
|
|
1,123,507
|
Unrealized (gain) loss
on derivative instruments, net
|
|
927,503
|
|
1,348,284
|
|
(4,156,836)
|
|
1,771,853
|
Other non-recurring
items
|
|
—
|
|
425,702
|
|
—
|
|
425,702
|
Adjusted
EBITDA
|
|
$
15,930,822
|
|
$ 15,923,405
|
|
$
35,878,015
|
|
$
32,161,307
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
3,682,775
|
|
$
2,844,540
|
|
$
15,356,951
|
|
$ 6,318,807
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding - basic
|
|
45,276,791
|
|
44,775,438
|
|
45,245,655
|
|
44,744,039
|
Weighted average number
of common shares outstanding - diluted
|
|
46,028,902
|
|
45,127,972
|
|
45,922,272
|
|
45,122,019
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
$
0.08
|
|
$
0.06
|
|
$
0.34
|
|
$
0.14
|
Earnings per common
share - diluted
|
|
$
0.08
|
|
$
0.06
|
|
$
0.33
|
|
$
0.14
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
|
|
|
Net Income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
3,682,775
|
|
$
2,844,540
|
|
$
15,356,951
|
|
$ 6,318,807
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Loss on sale of
vessels
|
|
—
|
|
—
|
|
—
|
|
1,172,196
|
Unrealized loss
(gain) on derivative instruments
|
|
927,503
|
|
1,348,284
|
|
(4,156,836)
|
|
1,771,853
|
Other non-recurring
items
|
|
—
|
|
$
425,702
|
|
—
|
|
425,702
|
Non-GAAP adjusted net
income attributable to Pangaea Logistics
Solutions Ltd.
|
|
$
4,610,278
|
|
$
4,618,526
|
|
$
11,200,115
|
|
$ 9,688,558
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
|
45,276,791
|
|
44,775,438
|
|
45,245,655
|
|
44,744,039
|
Weighted average number
of common shares - diluted
|
|
46,028,902
|
|
45,127,972
|
|
45,922,272
|
|
45,122,019
|
|
|
|
|
|
|
|
|
|
Adjusted EPS -
basic
|
|
$
0.10
|
|
$
0.10
|
|
$
0.25
|
|
$
0.22
|
Adjusted EPS -
diluted
|
|
$
0.10
|
|
$
0.10
|
|
$
0.24
|
|
$
0.21
|
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) and its
subsidiaries (collectively, "Pangaea" or the "Company") provides
seaborne drybulk logistics and transportation services as well as
terminal and stevedoring services. Pangaea utilizes its logistics
expertise to service a broad base of industrial customers who
require the transportation of a wide variety of drybulk cargoes,
including grains, coal, iron ore, pig iron, hot briquetted iron,
bauxite, alumina, cement clinker, dolomite and limestone. The
Company addresses the logistics needs of its customers by
undertaking a comprehensive set of services and activities,
including cargo loading, cargo discharge, port and terminal
operations, vessel chartering, voyage planning, and vessel
technical management. 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