NEW YORK, May 6, 2010 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the first quarter ended March 31, 2010.
Financial highlights included:
For the First Quarter:
- Net Income of $4.6 million or $0.07 per share (based on a weighted average of 62,282,017 diluted shares outstanding for the quarter) on net revenues of $54.2 million.
- Gross time charter revenues were $57.4 million, compared to $58.6 million in the first quarter of 2009.
- Net Revenues were $54.2 million, compared to $56 million in the first quarter of 2009.
- EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $32.9 million for the first quarter of 2010. During the comparable quarter in 2009, EBITDA was $37.3 million.
- Fleet utilization rate for the first quarter was 99.0%.
- Took delivery of six newbuilding vessels, Crane, Avocet, Egret Bulker, Thrasher, Golden Eagle, and Imperial Eagle, which immediately entered their respective time charters.
Subsequent to the end of the first quarter, Eagle Bulk has taken delivery of two new vessels, the Gannet Bulker and the Grebe Bulker, bringing the on-the-water fleet to 35 vessels. Both vessels have entered into their respective long-term charters.
Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "Eagle Bulk delivered another quarter of operational excellence while taking delivery of six newbuilds. We capitalized on a strong drybulk market by opportunistically placing two of the vessels on Baltic Supramax Index-linked ("BSI") charters, while the other four newbuildings entered into their respective long term charters. This balanced approach will continue throughout the year, as 58% of our revenue is fixed, 18% is indexed to the BSI, and 24% is open to charter in a favorable rate environment."
Results for the three months ended March 31, 2010 and 2009
For the first quarter of 2010, the Company reported net income of $4,573,634 or $0.07 per share, based on a weighted average of 62,282,017 diluted shares outstanding.
In the comparable first quarter of 2009, the Company reported net income of $17,236,781 or $0.37 per share, based on a weighted average of 47,031,300 diluted shares outstanding.
All of the Company's revenues were earned from time charters. Gross revenues in the quarter ended March 31, 2010 were $57,362,935, compared to $58,621,700 recorded in the comparable quarter in 2009. Net revenues during the quarter ended March 31, 2010 declined 3% to $54,243,725 from $55,977,666 in the quarter ended March 31, 2009. Net revenues recorded in the 2010 quarter include non-cash amortization of fair value below contract value of time charters acquired of $864,628, compared to $649,731 recorded in the 2009 quarter. Brokerage commissions incurred on revenues earned were $3,119,210 and $2,644,034 in the first quarters of 2010 and 2009, respectively.
Total operating expenses in the quarter ended March 31, 2010 were $38,556,526 compared to $32,265,141 recorded in the first quarter of 2009. The Company operated 33 vessels in the first quarter of 2010 compared to 25 vessels in 2009. Costs in the quarter ended March 31, 2010 were attributed by operating larger fleet.
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, was $32,938,490 for the first quarter of 2010, compared to $37,260,567 for the first quarter of 2009. (Please see below for a reconciliation of EBITDA to net income).
Newbuilding Program
The Company had entered into vessel newbuilding contracts at shipyards in Japan and China. During the first quarter of 2010, six vessels, Crane, Egret Bulker, Golden Eagle, Thrasher, Avocet, and Imperial Eagle were delivered into the Company's fleet. Since the inception of the program to March 31, 2010, the Company has taken delivery of 13 vessels, and has 14 vessels to be constructed and delivered during 2010-11. As of March 31, 2010, the Company has recorded advances of $302,583,979 towards the construction cost of these 14 vessels. These costs include progress payments to the shipyards, capitalized interest on debt drawn for the progress payments, insurance, legal, and technical supervision costs. (Table below provides anticipated delivery dates on the newbuilding fleet).
Liquidity and Capital Resources
Net cash provided by operating activities during the three month periods ended March 31, 2010 and 2009, was $30,920,496 and $43,024,179, respectively. The decrease was primarily due to lower rates on charter renewals offset by operation of a larger fleet.
Net cash used in investing activities during the three month period ended March 31, 2010, was $117,084,424, compared to $44,271,329 during the corresponding three month period ended March 31, 2009. Investing activities during the three month period ended March 31, 2010 related primarily to making progress payments and incurring related vessel construction expenses for the newbuilding vessels.
Net cash provided by financing activities during the three month period ended March 31, 2010, was $98,972,546, compared to net cash provided by financing activities of $10,935,046 during the corresponding three month period ended March 31, 2009. Financing activities during the three month period ended March 31, 2010, primarily involved borrowings of $101,972,546 from our revolving credit facility. Financing activities during the three month period ended March 31, 2009, primarily involved borrowings of $12,875,000.
As of March 31, 2010, our cash balance was $84,153,391, compared to a cash balance of $71,344,773 at December 31, 2009. In addition, $16,500,000 in cash deposits are maintained with our lender for loan compliance purposes and this amount is recorded in Restricted cash in our financial statements as of March 31, 2010. Also recorded in Restricted Cash is an amount of $276,056, which is collateralizing letters of credit relating to our office leases.
At March 31, 2010, the Company's debt consisted of $1,002,143,426 in net borrowings under the amended Revolving Credit Facility. These borrowings consisted of $730,443,547 for the 33 vessels currently in operation and $271,699,879 to fund the Company's newbuilding program.
Disclosure of Non-GAAP Financial Measures
EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
The following table is a reconciliation of net income, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA for the three-month periods ended March 31, 2010 and 2009:
|
Three Months ended March 31, 2010 |
Three Months ended March 31, 2009 |
|
| Net Income | $4,573,634 | $17,236,781 |
| Interest Expense | 11,176,987 | 6,486,317 |
| Depreciation and Amortization | 13,706,370 | 10,290,916 |
| Amortization of fair value (below) above market of time charter acquired | (864,628) | (649,731) |
| EBITDA | 28,592,363 | 33,364,283 |
| Adjustments for Exceptional Items: | ||
| Non-cash Compensation Expense (1) | 4,346,127 | 3,896,284 |
| Credit Agreement EBITDA | $32,938,490 | $37,260,567 |
| (1) Stock based compensation related to stock options, restricted stock units. | ||
The Company's capital expenditures relate to the purchase of vessels and capital improvements to acquired vessels, which are expected to enhance the revenue earning capabilities and safety of these vessels. In addition to the capital expenditures on newbuilding vessels as described above, major capital expenditures include funding the Company's maintenance program of regularly scheduled drydocking necessary to preserve the quality of our vessels as well as 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. Funding of these requirements is anticipated to be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce available days and operating days during that period.
Drydocking costs incurred are amortized to expense on a straight-line basis over the period through the date the next drydocking for those vessels are scheduled to occur. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:
| Quarter Ending | Off-hire Days(1) | Projected Costs(2) |
| June 30, 2010 | 66 | $1.65 million |
| September 30, 2010 | 66 | $1.65 million |
| December 31, 2010 | 44 | $1.10 million |
| March 31, 2011 | 44 | $1.10 million |
| (1) Actual duration of drydocking will vary based on the condition of the vessel, yard schedules and other factors. | ||
| (2) Actual costs will vary based on various factors, including where the drydockings are actually performed. | ||
Summary Consolidated Financial and Other Data:
The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (UNAUDITED) | ||
| Three Months Ended | ||
| March 31, 2010 | March 31, 2009 | |
| Revenues, net of commissions | $54,243,725 | $55,977,666 |
| Vessel expenses | 15,362,733 | 13,071,197 |
| Depreciation and amortization | 13,706,370 | 10,290,916 |
| General and administrative expenses | 9,487,423 | 8,903,028 |
| Total operating expenses | 38,556,526 | 32,265,141 |
| Operating income | 15,687,199 | 23,712,525 |
| Interest expense | 11,176,987 | 6,486,317 |
| Interest income | (63,422) | (10,573) |
| Net interest expense | 11,113,565 | 6,475,744 |
| Net income | $4,573,634 | $17,236,781 |
| Weighted average shares outstanding : | ||
| Basic | 62,126,665 | 47,031,300 |
| Diluted | 62,282,017 | 47,031,300 |
| Per share amounts: | ||
| Basic net income | $0.07 | $0.37 |
| Diluted net income | $0.07 | $0.37 |
| Cash dividends declared and paid | — | — |
| Fleet Operating Data: | ||
| Number of Vessels in Operating fleet | 33 | 25 |
| Fleet Ownership Days | 2,826 | 2,138 |
| Fleet Available Days | 2,804 | 2,137 |
| Fleet Operating Days | 2,776 | 2,128 |
| Fleet Utilization | 99.0% | 99.6% |
| CONSOLIDATED BALANCE SHEETS | ||
| March 31, 2010 (unaudited) | December 31, 2009 | |
| ASSETS: | ||
| Current assets: | ||
| Cash and cash equivalents | $84,153,391 | $71,344,773 |
| Accounts receivable | 8,842,296 | 7,443,450 |
| Prepaid expenses | 3,240,664 | 4,989,446 |
| Fair value above contract value of time charters acquired | 550,213 | 427,359 |
| Total current assets | 96,786,564 | 84,205,028 |
| Noncurrent assets: | ||
| Vessels and vessel improvements, at cost, net of accumulated depreciation of $138,461,809 and $125,439,001, respectively | 1,274,757,629 | 1,010,609,956 |
| Advances for vessel construction | 302,583,979 | 464,173,887 |
| Other fixed assets, net of accumulated amortization of $76,049 and $59,519, respectively | 254,713 | 258,347 |
| Restricted cash | 16,776,056 | 13,776,056 |
| Deferred drydock costs | 5,281,565 | 5,266,289 |
| Deferred financing costs | 19,912,857 | 21,044,379 |
| Fair value above contract value of time charters acquired | 3,938,242 | 4,103,756 |
| Fair value of derivative instruments | — | 4,765,116 |
| Total noncurrent assets | 1,623,505,041 | 1,523,997,786 |
| Total assets | $1,720,291,605 | $1,608,202,814 |
| LIABILITIES & STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $5,582,920 | $2,289,333 |
| Accrued interest | 7,824,844 | 7,810,931 |
| Other accrued liabilities | 6,440,541 | 3,827,718 |
| Deferred revenue and fair value below contract value of time charters acquired | 6,385,258 | 7,718,902 |
| Unearned charter hire revenue | 6,821,703 | 4,858,133 |
| Total current liabilities | 33,055,266 | 26,505,017 |
| Noncurrent liabilities: | ||
| Long-term debt | 1,002,143,426 | 900,170,880 |
| Deferred revenue and fair value below contract value of time charters acquired | 25,801,147 | 26,389,796 |
| Fair value of derivative instruments | 33,026,330 | 35,408,049 |
| Total noncurrent liabilities | 1,060,970,903 | 961,968,725 |
| Total liabilities | 1,094,026,169 | 988,473,742 |
| Commitment and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued | — | — |
| Common stock, $.01 par value, 100,000,000 shares authorized, 62,126,665 shares issued and outstanding | 621,267 | 621,267 |
| Additional paid‑in capital | 728,596,252 | 724,250,125 |
| Retained earnings (net of dividends declared of $262,118,388 as of March 31, 2010 and December 31, 2009, respectively) | (69,925,753) | (74,499,387) |
| Accumulated other comprehensive loss | (33,026,330) | (30,642,933) |
| Total stockholders' equity | 626,265,436 | 619,729,072 |
| Total liabilities and stockholders' equity | $1,720,291,605 | $1,608,202,814 |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| Three Months Ended | ||
| March 31, 2010 | March 31, 2009 | |
| Cash flows from operating activities: | ||
| Net income | $4,573,634 | $17,236,781 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Items included in net income not affecting cash flows: | ||
| Depreciation | 13,039,338 | 9,694,910 |
| Amortization of deferred drydocking costs | 667,032 | 596,006 |
| Amortization of deferred financing costs | 584,717 | 240,057 |
| Amortization of fair value below contract value of time charter acquired | (864,628) | (649,731) |
| Non‑cash compensation expense | 4,346,127 | 3,896,284 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (1,398,846) | (884,324) |
| Other assets | — | (3,549,732) |
| Prepaid expenses | 1,748,782 | (79,954) |
| Accounts payable | 3,293,587 | 1,386,575 |
| Accrued interest | 2,051,673 | 350,812 |
| Accrued expenses | 2,612,823 | 1,822,404 |
| Drydocking expenditures | (682,308) | (86,694) |
| Deferred revenue | (1,015,005) | 13,312,978 |
| Unearned charter hire revenue | 1,963,570 | (262,193) |
| Net cash provided by operating activities | 30,920,496 | 43,024,179 |
| Cash flows from investing activities: | ||
| Vessels and vessel improvements and advances for vessel construction | (117,071,528) | (44,271,329) |
| Purchase of other fixed assets | (12,896) | — |
| Net cash used in investing activities | (117,084,424) | (44,271,329) |
| Cash flows from financing activities: | ||
| Bank borrowings | 101,972,546 | 12,875,000 |
| Changes in restricted cash | (3,000,000) | (1,000,000) |
| Deferred financing costs | — | (939,954) |
| Net cash provided by financing activities | 98,972,546 | 10,935,046 |
| Net increase in cash | 12,808,618 | 9,687,896 |
| Cash at beginning of period | 71,344,773 | 9,208,862 |
| Cash at end of period | $84,153,391 | $18,896,758 |
Commercial and strategic management of the fleet is carried out by a wholly‑owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Marshall Islands limited liability company with offices in New York City.
The following table represents certain information about the Company's revenue earning charters on its operating fleet as of March 31, 2010.
| Vessel |
Year Built |
Dwt | Time Charter Expiration (1) |
Daily Time Charter Hire Rate |
| Avocet (3) | 2010 | 53,462 | May 2016 | $18,400 |
| May 2016 to Dec 2018/May 2019 | $18,000 (with 50% | |||
| profit share over $22,000) | ||||
| $18,850 | ||||
| Bittern (4) | 2009 | 57,809 | Jan 2015 | $18,000 (with 50% |
| Jan 2015 to Dec 2018/Apr 2019 | profit share over $22,000) | |||
| $18,850 | ||||
| Canary (5) | 2009 | 57,809 | March 2015 | $18,000 (with 50% |
| Mar 2015 to Dec 2018/Apr 2019 | profit share over $22,000) | |||
| Cardinal | 2004 | 55,362 | Sep 2010 to November 2010 | $16,250 |
| Condor | 2001 | 50,296 | Jul 2010 to Oct 2010 | $22,000 |
| Crane (6) | 2010 | 57,809 | Apr 2015 | $18,850 |
| Apr 2015 to Dec 2018/Apr 2019 | $18,000 (with 50% | |||
| profit share over $22,000) | ||||
| Crested Eagle (2,7) | 2009 | 55,989 | January 2011 to April 2011 | $11,500 (with 50% Index share over $11,500) |
| Crowned Eagle | 2008 | 55,940 | March 2010 to May 2010 | $25,000 |
| Egret Bulker(8) | 2010 | 57,809 | Oct 2012 to Feb 2013 | $17,650 (with 50% |
| profit share over $20,000) | ||||
| Falcon(9) | 2001 | 51,268 | April 2010 to Jun 2010 | $39,500 |
| Golden Eagle (2,10) | 2010 | 55,989 | Dec 2010 to Mar 2011 | Index |
| Goldeneye (2) | 2002 | 52,421 | May 2010 to July 2010 | Index (with minimum $8,500) |
| Griffon (11) | 1995 | 46,635 | February 2010 to May 2010 | $14,375 |
| Harrier | 2001 | 50,296 | April 2010 to August 2010 | $13,500 |
| Hawk I | 2001 | 50,296 | May 2010 to August 2010 | $13,000 |
| Heron (12) | 2001 | 52,827 | January 2011 to May 2011 | $26,375 |
| Imperial Eagle (2,13) | 2010 | 55,989 | Jan 2011 to Mar 2011 | Index |
| Jaeger (14) | 2004 | 52,248 | April 2010 to July 2010 | $26,000 |
| Kestrel I | 2004 | 50,326 | March 2010 to July 2010 | $11,500 |
| Kite | 1997 | 47,195 | November 2010 to January 2011 | $17,000 |
| Kittiwake (2) | 2002 | 53,146 | August 2010 to October 2010 | Index (with minimum $8,500) |
| Merlin (15) | 2001 | 50,296 | December 2010 to March 2011 | $23,000 |
| Osprey I (16) | 2002 | 50,206 | March 2010 to May 2010 | $18,000 |
| Peregrine (2) | 2001 | 50,913 | January 2010 | $8,500 |
| Jan 2010 to Jan 2011/Mar 2011 | $10,500 (with 50% Index share over $10,500) | |||
| Redwing (2) | 2007 | 53,411 | August 2010 to October 2010 | Index (with minimum $8,500) |
| Shrike | 2003 | 53,343 | May 2010 to August 2010 | $25,600 |
| Skua (2) | 2003 | 53,350 | Sep 2010 to November 2010 | Index (with minimum $8,500) |
| Sparrow (17) | 2000 | 48,225 | February 2010 to May 2010 | $10,000 |
| Stellar Eagle | 2009 | 55,989 | February 2010 to May 2010 | $12,000 |
| Tern | 2003 | 50,200 | Mar 2010 to June 2010/Aug 2010 | $23,500 |
| $18,400 | ||||
| Thrasher (18) | 2010 | 53,360 | Apr 2016 | $18,000 (with 50% |
| Apr 2016 to Dec 2018/Apr 2019 | profit share over $22,000) | |||
| $18,300 | ||||
| Woodstar (19) | 2008 | 53,390 | January 2014 | $18,000 (with 50% |
| Jan 2014 to Dec 2018/Apr 2019 | profit share over $22,000) | |||
| $24,750 | ||||
| Wren (20) | 2008 | 53,349 | Dec 2011 | $18,000 (with 50% |
| Dec 2011 to Dec 2018/Apr 2019 | profit share over $22,000) | |||
| (1) The date range provided represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter. The time charter hire rates presented are gross daily charter rates before brokerage commissions, ranging from 1.25% to 6.25%, to third party ship brokers. | ||||
| (2) Index, an average of the trailing Baltic Supramax Index. | ||||
| (3) Revenue recognition for the AVOCET is based on an average daily base rate of $18,281. | ||||
| (4) Revenue recognition for the BITTERN is based on an average daily base rate of $18,485. | ||||
| (5) Revenue recognition for the CANARY is based on an average daily base rate of $18,493. | ||||
| (6) Revenue recognition for the CRANE is based on an average daily base rate of $18,497. | ||||
| (7) The charterer of the CRESTED EAGLE has exercised an option to extend the charter period by 11 to 13 months from February 2010. | ||||
| (8) The EGRET BULKER has entered into a charter for 33 to 37 months. The charter rate is $17,650 per day with a 50% profit share for earned rates over $20,000 per day. The charterer has an option to extend the charter by 2 periods of 11 to 13 months each. | ||||
| (9) Upon completion of the previous charter in April 2010, the FALCON commenced a charter for four to six months at $25,000 per day. | ||||
| (10) The GOLDEN EAGLE commenced an index based charter for 11 to 13 months. The index rate will be an average of the trailing Baltic Supramax Index for each 15 day hire period. | ||||
| (11) The charter rate of the GRIFFON has been changed to $14,375 as a result of an arbitration settlement reached in March 2010. | ||||
| (12) The charterer of the HERON has an option to extend the charter period by 11 to 13 months at a time charter rate of $27,375 per day. The charterer has a second option for a further 11 to 13 months at a time charter rate of $28,375 per day. | ||||
| (13) The IMPERIAL EAGLE commenced an index based charter for 11 to 13 months. The index rate will be an average of the trailing Baltic Supramax Index for each 15 day hire period. | ||||
| (14) Upon completion of the previous charter in January 2010, the JAEGER commenced a charter for three to five months at $26,000 per day. | ||||
| (15) Revenue recognition for the MERLIN is based on an average daily rate of $25,000. | ||||
| (16) Upon completion of the previous charter in April 2010, the OSPREY I commenced a charter for four to six months at $25,250 per day. | ||||
| (17) Upon completion of the previous time charter in April 2010 the SPARROW commenced a charter for four to six months at $24,000 per day. | ||||
| (18) Revenue recognition for the THRASHER is based on an average daily base rate of $18,280. | ||||
| (19) Revenue recognition for the WOODSTAR is based on an average daily base rate of $18,154. | ||||
| (20) Revenue recognition for the WREN is based on an average daily base rate of $20,245. | ||||
The following table, as of March 31, 2010, represents certain information about the Company's newbuilding vessels being constructed and their expected employment upon delivery:
| Vessel | Dwt | Year Built – Actual or Expected Delivery (1) | Time Charter Employment Expiration (2) | Daily Time Charter Hire Rate (3) | Profit Share |
| Gannet Bulker (4,7) | 58,000 | 2010Q2 | Jan 2013 to May 2013 | $17,650 | 50% over $20,000 |
| Grebe Bulker (4,7) | 58,000 | 2010Q2 | Jan 2013 to May 2013 | $17,650 | 50% over $20,000 |
| Ibis Bulker (4) | 58,000 | 2010Q2 | Mar 2013 to Jul 2013 | $17,650 | 50% over $20,000 |
| Jay | 58,000 | 2010Q3 | Dec-15 | $18,500 | 50% over $21,500 |
| Dec 2015 to Dec 2018/Apr 2019 | $18,000 | 50% over $22,000 | |||
| Kingfisher | 58,000 | 2010Q3 | Dec-15 | $18,500 | 50% over $21,500 |
| Dec 2015 to Dec 2018/Apr 2019 | $18,000 | 50% over $22,000 | |||
| Martin | 58,000 | 2010Q3 | Feb 2017 to Feb 2018 | $18,400 | — |
| Thrush | 53,100 | 2010Q4 | Charter Free | — | — |
| Nighthawk | 58,000 | 2011Q1 | Sep 2017 to Sep 2018 | $18,400 | — |
| Oriole | 58,000 | 2011Q3 | Jan 2018 to Jan 2019 | $18,400 | — |
| Owl | 58,000 | 2011Q3 | Feb 2018 to Feb 2019 | $18,400 | — |
| Petrel (4) | 58,000 | 2011Q4 | Jun 2014 to Oct 2014 | $17,650 | 50% over $20,000 |
| Puffin (4) | 58,000 | 2011Q4 | Jul 2014 to Nov 2014 | $17,650 | 50% over $20,000 |
| Roadrunner (4) | 58,000 | 2011Q4 | Aug 2014 to Dec 2014 | $17,650 | 50% over $20,000 |
| Sandpiper (4) | 58,000 | 2011Q4 | Sep 2014 to Jan 2015 | $17,650 | 50% over $20,000 |
| CONVERTED INTO OPTIONS | |||||
| Snipe (6) | 58,000 | 2012Q1 | Charter Free | — | — |
| Swift (6) | 58,000 | 2012Q1 | Charter Free | — | — |
| Raptor (6) | 58,000 | 2012Q2 | Charter Free | — | — |
| Saker (6) | 58,000 | 2012Q2 | Charter Free | — | — |
| Besra (5,6) | 58,000 | 2011Q4 | Charter Free | — | — |
| Cernicalo (5,6) | 58,000 | 2011Q1 | Charter Free | — | — |
| Fulmar (5,6) | 58,000 | 2011Q3 | Charter Free | — | — |
| Goshawk (5,6) | 58,000 | 2011Q4 | Charter Free | — | — |
| (1) Vessel build and delivery dates are estimates based on guidance received from shipyard. | |||||
| (2) The date range represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter. | |||||
| (3) The time charter hire rate presented are gross daily charter rates before brokerage commissions ranging from 1.25% to 6.25% to third party ship brokers. | |||||
| (4) The charterer has an option to extend the charter by 2 periods of 11 to 13 months each. | |||||
| (5) Options for construction declared on December 27, 2007. | |||||
| (6) Firm contracts converted to options in December 2008. | |||||
| (7) The GANNET BULKER and GREBE BULKER were delivered during the second quarter of 2010. | |||||
Glossary of Terms:
Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.
Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. 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: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the 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.
Conference Call Information
As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET on Friday, May 7, 2010, to discuss these results.
To participate in the teleconference, investors and analysts are invited to call 800-265-0241 in the U.S., or 617-847-8704 outside of the U.S., and reference participant code 91021982. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.
A replay will be available following the call until 11:59 PM ET on May 14, 2010. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 12955927.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is a leading global owner of Supramax dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our 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.
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, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
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 in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, 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 Eagle Bulk Shipping Inc. with the US Securities and Exchange Commission.
Visit our website at www.eagleships.com