Second Quarter Revenue increases 42% year-on-year
Second Quarter EBITDA increases 22% year-on-year
NEW YORK, Aug. 5, 2009 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) today announced its results for the second quarter of 2009.
Second quarter 2009 highlights included:
* Net income was $13.3 million or $0.26 per share (based on a weighted average of 52.3 million shares), compared to net income of $14.9 million or $0.32 per share (based on a weighted average of 47.1 million shares) in the second quarter of 2008. * Net Revenues were $53.0 million, up 42% from $37.2 million in the second quarter of 2008. Gross time charter revenue increased by 43% to $55.9 million, from $39.2 in the second quarter of 2008. * EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, increased by 22% to $33.8 million, from $27.8 million in the second quarter of 2008. * Fleet utilization rate for the second quarter was 99.7%. * Successful completion of a $100 million offering of common stock. A portion of the proceeds will be used to repay debt. * Total cash and cash equivalents increases to $142 million.
Subsequent to the end of the second quarter, Eagle Bulk successfully amended its revolving credit facility on terms that will provide the Company with enhanced financial flexibility. Under this amendment, the collateral covenants which were based on vessel market values are now based on vessel book values. Collateral covenants will revert to vessel market values only when the drybulk market recovers, enabling provisions of the original facility to be met for two consecutive quarters. Among other amendments, the EBITDA to interest coverage ratio has been reduced to 1.2x until June 2011, then will be 1.3x until provisions of the original facility are met for two consecutive quarters. Interest will be borne at Libor plus a margin of 2.5%. The non-amortizing revolving credit facility has been amended from $1.35 billion to $1.2 billion with maturity in July 2014, and the Company will use half the net proceeds from any equity issuance to repay debt and reduce the facility. The Company will continue to draw on the facility to fund its newbuilding commitments, and this agreement further supports the funding for the remainder of its newbuilding program.
Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "We are pleased to report another quarter marked by steady cash flow and stellar operating performance. These achievements validate the Company's disciplined chartering strategy amid uncertainty in the dry bulk market, and significant charter cover for the balance of 2009 will ensure revenue stability going forward. Going forward, we also see the potential for upside from open capacity and indexed charters in a strengthening rate environment, as well as our on-plan fleet expansion program."
Mr. Zoullas continued, "Furthermore, our cash position at the close of the quarter of $142 million, in conjunction with the comprehensive credit facility amendment which we announced today, strengthens our balance sheet and will ensure we execute responsibly on our corporate growth initiatives."
Separately, the Company announced that it has entered into an agreement with Delphin Shipping LLC, a newly formed Marshall Islands limited liability company affiliated with Kelso & Co., a private equity firm, and Eagle Bulk's Chief Executive Officer Sophocles Zoullas, who has agreed to serve as Delphin's non-executive chairman. Delphin has been formed to take advantage of opportunities in the shipping sector, including drybulk and other sectors. Eagle Bulk will have the initial opportunity to acquire any dry bulk vessels being evaluated for purchase by Delphin and will have a right of first offer on the sale of any drybulk vessel by Delphin. The Company will provide commercial and technical supervisory management services for the dry bulk vessel investments of Delphin which will provide additional fee income and cost savings to the Company from the economies of scale generated by operating a large fleet of dry bulk vessels.
Results of Operations for the three month period ended June 30, 2009
For the second quarter of 2009, the Company reported net income of $13,347,535 or $0.26 per share, based on a weighted average of 52,295,221 diluted shares outstanding. In the comparable second quarter of 2008, the Company reported net income of $14,906,130 or $0.32 per share, based on a weighted average of 47,123,585 diluted shares outstanding.
All of the Company's revenues were earned from time charters. Gross time charter revenues in the quarter ended June 30, 2009 were $55,933,747, an increase of 43% from $39,170,513 recorded in the comparable quarter in 2008, primarily due to the operation of a larger fleet. Third party brokerage commissions incurred on those gross revenues were $2,912,409 and $1,947,313, respectively. Net revenues during the quarter ended June 30, 2009, increased 42% to $53,021,338 from $37,223,200 in the comparable quarter in 2008.
Total operating expenses were $32,918,240 in the quarter ended June 30, 2009 compared to $19,750,394 recorded in the second quarter of 2008. The increase was due to operation of a larger fleet, increases in vessel crew and insurance costs, general and administrative expenses, and vessel depreciation expenses.
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, increased by 22% to $33,804,619 for the second quarter of 2009, from $27,802,569 for the second quarter of 2008. (Please see below for a reconciliation of EBITDA to net income).
Results of Operations for the six month period ended June 30, 2009
For the six months ended June 30, 2009, the Company reported net income of $30,584,316 or $0.62 per share, based on a weighted average of 49,686,359 diluted shares outstanding. In the comparable period of 2008, the Company reported net income of $29,251,940 or $0.62 per share, based on a weighted average of 47,047,552 diluted shares outstanding.
All of the Company's revenues were earned from time charters. Gross time charter revenues for the six-month period ended June 30, 2009 were $114,555,447, an increase of 47% from $77,781,434 recorded in the comparable period in 2008, primarily due to the operation of a larger fleet. Brokerage commissions incurred on those gross revenues were $5,556,443 and $3,872,218, respectively. Net revenues during the six-month period ended June 30, 2009, increased 47% to $108,999,004 from $73,909,216 in the comparable period in 2008.
Total operating expenses were $65,183,381 in the six-months ended June 30, 2009 compared to $40,126,853 recorded in the same period of 2008. The increase was due to operation of a larger fleet, increases in vessel crew and insurance costs, general and administrative expenses, and vessel depreciation expenses.
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, increased by 28% to $71,065,186 for the six months ended June 30, 2009, from $55,350,374 for the same period in 2008. (Please see below for a reconciliation of EBITDA to net income).
Liquidity and Capital Resources
Net cash provided by operating activities during the six month periods ended June 30, 2009 and 2008, was $66,456,504 and $49,815,118, respectively, as the Company's fleet days increased to 4,413 days from 3,294 days.
Net cash used in investing activities during the six month period ended June 30, 2009, was $60,498,258, compared to $159,879,332 during the corresponding six month period ended June 30, 2008. Investing activities during the six month period ended June 30, 2009 related primarily to progress payments and related construction expenses for the newbuilding vessels.
Net cash provided by financing activities during the six month period ended June 30, 2009, was $114,092,565, compared to net cash provided by financing activities of $20,157,135 during the corresponding six month period ended June 30, 2008. During the six month period ended June 30, 2009, the Company received $97,291,046 in net proceeds from the sale of shares of common shares of the Company, and borrowed $19,505,000 from our revolving credit facility.
As of June 30, 2009, our cash balance was $129,259,673, compared to a cash balance of $9,208,862 at December 31, 2008. In addition, $12,500,000 in cash deposits are maintained with the Company's lender for loan compliance purposes and this amount is recorded in Restricted cash in the financial statements as of June 30, 2009.
At June 30, 2009, the Company had outstanding debt of $809,106,403 which was borrowed under its revolving credit facility. Under the third amendment, as discussed above, the Company, in the third quarter of 2009, will incur a fee of 0.25% of the revised facility amount and will record a charge of approximately $3.4 million relating to the write-off deferred financing fees.
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:
---------------------------------------------------------------------
Three Months Ended Six Months Ended
---------------------------------------------------------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
---------------------------------------------------------------------
Net Income $13,347,535 $14,906,130 $30,584,316 $29,251,940
---------------------------------------------------------------------
Interest Expense 6,815,853 3,449,217 13,302,170 6,799,470
---------------------------------------------------------------------
Depreciation and
Amortization 10,943,247 7,390,982 21,234,163 14,727,021
---------------------------------------------------------------------
Amortization of
fair value below
market of time
charters acquired (647,449) -- (1,297,180) --
---------------------------------------------------------------------
EBITDA 30,459,186 25,746,329 63,823,469 50,778,431
---------------------------------------------------------------------
Adjustments for
Exceptional
Items:
---------------------------------------------------------------------
Non-cash
Compensation
Expense 3,345,433 2,056,240 7,241,717 4,571,943
---------------------------------------------------------------------
Credit Agreement
EBITDA $33,804,619 $27,802,569 $71,065,186 $55,350,374
-------------------==================================================
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:
Three Months Ended
------------------
----------------------------
June 30, June 30,
2009 2008
------------ ------------
Revenues, net of Commissions $ 53,021,338 $ 37,223,200
Vessel Expenses 12,933,808 7,596,479
Depreciation and Amortization 10,943,247 7,390,982
General and Administrative Expenses 9,041,185 4,762,933
----------------------------
Total Operating Expenses 32,918,240 19,750,394
----------------------------
Operating Income 20,103,098 17,472,806
Interest Expense 6,815,853 3,449,217
Interest Income (60,290) (882,541)
----------------------------
Net Interest Expense 6,755,563 2,566,676
----------------------------
Net Income $ 13,347,535 $ 14,906,130
============ ============
Weighted Average Shares Outstanding :
Basic 52,252,714 46,763,160
Diluted 52,295,221 47,123,585
Per Share Amounts:
Basic Net Income $ 0.26 $ 0.32
Diluted Net Income $ 0.26 $ 0.32
Cash Dividends Declared and Paid -- $ 0.50
Fleet Operating Data
Number of Vessels in Operating fleet 25 20
Fleet Ownership Days 2,275 1,656
Fleet Available Days 2,249 1,617
Fleet Operating Days 2,242 1,616
Fleet Utilization Days 99.7% 99.9%
Six Months Ended
----------------
----------------------------
June 30, June 30,
2009 2008
------------ ------------
Revenues, net of Commissions $108,999,004 $ 73,909,216
Vessel Expenses 26,005,005 15,587,740
Depreciation and Amortization 21,234,163 14,727,021
General and Administrative Expenses 17,944,213 9,812,092
----------------------------
Total Operating Expenses 65,183,381 40,126,853
----------------------------
Operating Income 43,815,623 33,782,363
Interest Expense 13,302,170 6,799,470
Interest Income (70,863) (2,269,047)
----------------------------
Net Interest Expense 13,231,307 4,530,423
----------------------------
Net Income $ 30,584,316 $ 29,251,940
============ ============
Weighted Average Shares Outstanding :
Basic 49,656,431 46,757,849
Diluted 49,686,359 47,047,552
Per Share Amounts:
Basic Net Income $ 0.62 $ 0.63
Diluted Net Income $ 0.62 $ 0.62
Cash Dividends Declared and Paid -- $ 1.00
Fleet Operating Data
Number of Vessels in Operating fleet 25 20
Fleet Ownership Days 4,413 3,294
Fleet Available Days 4,386 3,255
Fleet Operating Days 4,370 3,249
Fleet Utilization Days 99.6% 99.8%
CONSOLIDATED BALANCE SHEETS:
June 30, 2009 December 31, 2008
----------------- -----------------
ASSETS: (Unaudited)
Current assets:
Cash and cash equivalents $ 129,259,673 $ 9,208,862
Accounts receivable 5,373,408 4,357,837
Prepaid expenses 3,509,698 3,297,801
Other assets 1,901,716 --
----------------- -----------------
Total current assets 140,044,495 16,864,500
----------------- -----------------
Noncurrent assets:
Vessels and vessel
improvements, at cost, net
of accumulated depreciation
of $104,123,826 and
$84,113,047, respectively 929,255,162 874,674,636
Advances for vessel
construction 397,350,804 411,063,011
Other assets, net of
accumulated amortization of
$13,689 and $4,556,
respectively 271,801 219,245
Restricted cash 12,776,056 11,776,056
Deferred drydock costs, net
of accumulated amortization
of $6,236,900 and $5,022,649,
respectively 3,851,375 3,737,386
Deferred financing costs 23,312,392 24,270,060
Fair value above contract
value of time charters
acquired 4,531,115 4,531,115
Fair value of derivative
instruments 5,973,180 15,039,535
----------------- -----------------
Total noncurrent assets 1,377,321,885 1,345,311,044
----------------- -----------------
Total assets $ 1,517,366,380 $ 1,362,175,544
================= =================
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 2,787,392 $ 2,037,060
Accrued interest 6,708,273 7,523,057
Other accrued liabilities 8,154,492 3,021,975
Deferred revenue and fair
value below contract value
of time charters acquired 10,773,151 2,863,184
Unearned charter hire revenue 5,678,084 5,958,833
----------------- -----------------
Total current liabilities 34,101,392 21,404,109
----------------- -----------------
Noncurrent liabilities:
Long-term debt 809,106,403 789,601,403
Fair value below contract
value of time charters
acquired 26,549,512 29,205,196
Fair value of derivative
instruments 40,605,203 50,538,060
----------------- -----------------
Total noncurrent liabilities 876,261,118 869,344,659
----------------- -----------------
Total liabilities 910,362,510 890,748,768
----------------- -----------------
Commitment and contingencies
Stockholders' equity:
Preferred stock, $.01 par
value, 25,000,000 shares
authorized, none issued -- --
Common shares, $.01 par value,
100,000,000 shares authorized,
61,968,034 and 47,031,300
shares issued and outstanding 619,680 470,313
Additional paid-in capital 718,218,555 614,241,646
Retained earnings (net of
dividends declared of
$262,188,388) (77,202,342) (107,786,658)
Accumulated other comprehensive
loss (34,632,023) (35,498,525)
----------------- -----------------
Total stockholders' equity 607,003,870 471,426,776
----------------- -----------------
Total liabilities and
stockholders' equity $ 1,517,366,380 $ 1,362,175,544
================= =================
CONSOLIDATED STATEMENTS OF CASH FLOWS:
Six Months Ended
June 30, 2009 June 30, 2008
----------------- -----------------
Cash flows from operating
activities:
Net income $ 30,584,316 $ 29,251,940
Adjustments to reconcile net
income to net cash provided
by operating activities:
Items included in net income
not affecting cash flows:
Depreciation and amortization 20,019,912 13,477,780
Amortization of deferred
drydocking costs 1,214,251 1,249,241
Amortization of deferred
financing costs 509,514 123,219
Amortization of fair value
below contract value of time
charter acquired (1,297,180) --
Non-cash compensation expense 7,241,717 4,571,943
Changes in operating assets
and liabilities:
Accounts receivable (1,015,571) (906,383)
Other assets (1,901,716) --
Prepaid expenses (211,897) (961,110)
Accounts payable 750,332 (1,847,186)
Accrued interest 487,835 3,752,504
Accrued expenses 4,990,685 983,705
Drydocking expenditures (1,186,408) (1,499,764)
Deferred revenue 6,551,463 --
Unearned charter hire revenue (280,749) 1,619,229
----------------- -----------------
Net cash provided by
operating activities 66,456,504 49,815,118
Cash flows from investing
activities:
Vessels and vessel improvements
and advances for vessel
construction (60,436,569) (159,809,658)
Purchase of other assets (61,689) (69,674)
----------------- -----------------
Net cash used in investing
activities (60,498,258) (159,879,332)
Cash flows from financing
activities:
Issuance of Common Stock 99,999,997 237,327
Equity issuance costs (2,708,951) --
Bank borrowings 19,505,000 68,451,753
Changes in restricted cash (1,000,000) (1,151,440)
Deferred financing costs (1,296,994) (616,685)
Cash used to settle net share
equity awards (406,487) --
Cash dividends -- (46,763,820)
----------------- -----------------
Net cash provided by financing
activities 114,092,565 20,157,135
Net increase/(decrease) in cash 120,050,811 (89,907,079)
Cash at beginning of period 9,208,862 152,903,692
----------------- -----------------
Cash at end of period $ 129,259,673 $ 62,996,613
================= =================
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 June 30, 2009:
---------------------------------------------------------------------
Year Daily Time
----- Charter
Vessel Built Dwt Time Charter Expiration (1) Hire Rate
------ ----- --- --------------------------- --------
Cardinal (2) 2004 55,362 July to September 2009 $12,000
Condor 2001 50,296 May to July 2010 $22,000
Falcon (3) 2001 51,268 April to June 2010 $39,500
Griffon (4) 1995 46,635 February 2010 to May 2010 $9,500
Harrier (5) 2001 50,296 April to June 2010 $13,500
Hawk I (6) 2001 50,296 May 2010 to August 2010 $13,000
Heron (7) 2001 52,827 January 2011 to May 2011 $26,375
Jaeger (8) 2004 52,248 October 2009 to January 2010 $10,100
Kestrel I (9) 2004 50,326 March 2010 to July 2010 $11,500
Kite (10) 1997 47,195 September 2009 to January 2010 $9,500
Merlin (11) 2001 50,296 December 2010 to March 2011 $25,000
Osprey I (12) 2002 50,206 October 2009 to December 2009 $25,000
Peregrine (13) 2001 50,913 December 2009 to March 2010 $8,500
Sparrow (14) 2000 48,225 February 2010 to May 2010 $10,000
Tern (15) 2003 50,200 December 2009 to March 2010 $8,500
Shrike 2003 53,343 May 2010 to Aug 2010 $25,600
Skua (16) 2003 53,350 July 2009 to August 2009 $17,500
September 2010 - November 2010 Index
Kittiwake (17) 2002 53,146 August 2009 Short Term
Kittiwake (17) 2002 53,146 June 2010 - September 2010 Index
Goldeneye (18) 2002 52,421 May 2010 to July 2010 Index
Wren (19) 2008 53,349 Feb 2012 $24,750
$18,000
(with
profit
Wren (19) 2008 53,349 Feb 2012 to Dec 2018/Apr 2019 share)
Redwing (20) 2007 53,411 August 2009 to September 2009 $50,000
Redwing (20) 2007 53,411 August 2010 - October 2010 Index
Woodstar (21) 2008 53,390 Jan 2014 $18,300
$18,000
(with
profit
Woodstar (21) 2008 53,390 Jan 2014 to Dec 2018/Apr 2019 share)
Crowned Eagle 2008 55,940 September 2009 - December 2009 $16,000
Crested
Eagle (22) 2009 55,989 December 2009 - March 2010 $10,500
Stellar Eagle 2009 55,989 February 2010 - May 2010 $12,000
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(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) The charter rate on the CARDINAL changed in June 2009 to $12,000
per day until September 2009.
(3) The charterer of the FALCON has an option to extend the charter
period by 11 to 13 months at a daily time charter rate of
$41,000.
(4) In March 2009, upon completion of the previous time charter, the
GRIFFON commenced a new short term charter at $10,500 per day.
Upon completion of this charter, the vessel will enter a new
charter for 11 to 13 months at a rate of $9,500 per day.
(5) In June 2009, upon completion of the previous time charter, the
HARRIER commenced a new charter at $13,500 per day.
(6) In June 2009, the HAWK concluded its short term charter at
$12,800 per day and commenced a new one year charter at $13,000
per day.
(7) 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.
(8) In December 2008, the JAEGER commenced a charter for one year at
an average daily rate of approximately $10,100 based on a charter
rate of $5,000 per day for the first 50 days and $11,000 per day
for the balance of the year.
(9) In April 2009, upon completion of the previous time charter, the
KESTREL commenced a new charter for 11 to 13 months at a rate of
$11,500 per day.
(10) In March 2009, the charterer of the KITE paid in advance for the
duration of the charter an amount equal to the difference between
the prevailing daily charter rate of $21,000 and a new rate of
$9,500 per day. This amount has been recorded in Deferred Revenue
in the Company's financial statements and is being recognized
into revenue ratably over the charter period such that the daily
charter rate remains effectively $21,000 per day. The cash
payment received by the Company has been adjusted by a present
value interest rate factor of 3%.
(11) The daily rate for the MERLIN is $27,000 for the first year,
$25,000 for the second year and $23,000 for the third year.
Revenue recognition is based on an average daily rate of $25,000.
(12) The charterer of the OSPREY has an option to extend the charter
period by 11 to 13 months at a time charter rate of $25,000 per
day.
(13) In January 2009, upon completion of the previous time charter,
the PEREGRINE commenced a new charter at $8,500 per day.
(14) In March 2009, the charterer of the SPARROW paid in advance for
the duration of the charter an amount equal to the difference
between the prevailing daily charter rate of $34,500 and a new
rate of $10,000 per day. This amount has been recorded in
Deferred Revenue in the Company's financial statements and is
being recognized into revenue ratably over the charter period
such that the daily charter rate remains effectively $34,500 per
day. The cash payment received by the Company has been adjusted
by a present value interest rate factor of 3%.
(15) In January 2009, upon completion of the previous time charter,
the TERN commenced a new charter at $8,500 per day.
(16) Upon conclusion of the previous time charter in May 2009, the
SKUA commenced a short term charter at $17,500 per day.
Subsequently, the SKUA will enter into an index based charter for
one year with a minimum rate of $8,500 per day. The index rate
will be an average of the trailing Baltic Supramax Index for each
15 day hire period. For the first 45 days of the charter the
index rate will be a maximum of $19,000 per day.
(17) Upon conclusion of the previous time charter, in July 2009, the
KITTIWAKE performed a short term charter at $18,000 per day.
Subsequently, the KITTIWAKE will enter into an index based
charter for one year with a minimum rate of $8,500 per day. The
index rate will be an average of the trailing Baltic Supramax
Index for each 15 day hire period. For the first 45 days of the
charter the index rate will be a maximum of $19,000 per day.
(18) Upon conclusion of the previous time charter, in June 2009, the
GOLDENEYE commenced an index based one year charter with a
minimum rate of $8,500 per day. The index rate will be an average
of the trailing Baltic Supramax Index for each 15 day hire
period. For the first 50 days of the charter the index rate is
$15,000 per day.
(19) The WREN has entered into a long-term charter. The charter rate
until February 2012 is $24,750 per day. Subsequently, the charter
until redelivery in December 2018 to April 2019 will be profit
share based. The base charter rate will be $18,000 with a 50%
profit share for earned rates over $22,000 per day. Revenue
recognition for the base rate from commencement of the charter is
based on an average daily base rate of $20,306.
(20) Upon conclusion of the current time charter, the REDWING will
commence an index based one year charter with a minimum rate of
$8,500 per day. The index rate will be an average of the trailing
Baltic Supramax Index for each 15 day hire period. For the first
45 days of the charter the index rate will be a maximum of
$19,000 per day.
(21) The WOODSTAR has entered into a long-term charter. The charter
rate until January 2014 is $18,300 per day. Subsequently, the
charter until redelivery in December 2018 to April 2019 will be
profit share based. The base charter rate will be $18,000 with a
50% profit share for earned rates over $22,000 per day. Revenue
recognition for the base rate from commencement of the charter is
based on an average daily base rate of $18,152.
(22) The charterer of the CRESTED EAGLE has an option to extend the
charter period by 11 to 13 months at a base time charter rate of
$11,500 plus 50% of the difference between the base rate and the
BSI time charter average (provided the BSI TC average is greater
than the base rate). The profit share to be calculated each month
based on the trailing BSI TC average for the month.
The following table, as of June 30, 2009, represents certain information about the Company's newbuilding vessels being constructed and their employment upon delivery:
---------------------------------------------------------------------
Year Daily
-------- -------
Built - Time
-------- -------
Expected Time Charter Charter
-------- -------------- -------
Delivery Employment Hire Profit
-------- -------------- ------- --------
Vessel Dwt (1) Expiration (2) Rate (3) Share
------ --- -------- -------------- ------- --------
Bittern 58,000 Sep 2009 Dec 2014 $18,850 --
Bittern 58,000 Sep 2009 Dec 2014 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Canary 58,000 Nov 2009 Jan 2015 $18,850 --
Canary 58,000 Nov 2009 Jan 2015 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Crane 58,000 Jan 2010 Feb 2015 $18,850 --
Crane 58,000 Jan 2010 Feb 2015 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Thrasher 53,100 Nov 2009 Feb 2016 $18,400 --
Thrasher 53,100 Nov 2009 Feb 2016 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Avocet 53,100 Jan 2010 Mar 2016 $18,400 --
Avocet 53,100 Jan 2010 Mar 2016 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Egret (4) 58,000 Jan 2010 Sep 2012 to 50% over
Jan 2013 $17,650 $20,000
Golden Eagle 56,000 Jan 2010 Charter Free -- --
Gannet (4) 58,000 Feb 2010 Oct 2012 to 50% over
Feb 2013 $17,650 $20,000
Grebe(4) 58,000 Mar 2010 Nov 2012 to 50% over
Mar 2013 $17,650 $20,000
Imperial Eagle 56,000 Feb 2010 Charter Free -- --
Ibis (4) 58,000 Apr 2010 Dec 2012 to 50% over
Apr 2013 $17,650 $20,000
50% over
Jay 58,000 May 2010 Sep 2015 $18,500 $21,500
Jay 58,000 May 2010 Sep 2015 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
50% over
Kingfisher 58,000 Jun 2010 Oct 2015 $18,500 $21,500
Kingfisher 58,000 Jun 2010 Oct 2015 to
Dec 2018/ 50% over
Apr 2019 $18,000 $22,000
Martin 58,000 Jul 2010 Dec 2016 to
Dec 2017 $18,400 --
Thrush 53,100 Nov 2010 Charter Free -- --
Nighthawk 58,000 Mar 2011 Sep 2017 to
Sep 2018 $18,400 --
Oriole 58,000 Jul 2011 Jan 2018 to
Jan 2019 $18,400 --
Owl 58,000 Aug 2011 Feb 2018 to
Feb 2019 $18,400 --
Petrel (4) 58,000 Sep 2011 Jun 2014 to 50% over
Oct 2014 $17,650 $20,000
Puffin (4) 58,000 Oct 2011 Jul 2014 to 50% over
Nov 2014 $17,650 $20,000
Roadrunner (4) 58,000 Nov 2011 Aug 2014 to 50% over
Dec 2014 $17,650 $20,000
Sandpiper (4) 58,000 Dec 2011 Sep 2014 to 50% over
Jan 2015 $17,650 $20,000
CONVERTED INTO
OPTIONS
--------------
Snipe (6) 58,000 Jan 2012 Charter Free -- --
Swift (6) 58,000 Feb 2012 Charter Free -- --
Raptor (6) 58,000 Mar 2012 Charter Free -- --
Saker (6) 58,000 Apr 2012 Charter Free -- --
Besra (5,6) 58,000 Oct 2011 Charter Free -- --
Cernicalo (5,6) 58,000 Jan 2011 Charter Free -- --
Fulmar (5,6) 58,000 Jul 2011 Charter Free -- --
Goshawk (5,6) 58,000 Sep 2011 Charter Free -- --
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(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.
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 Thursday, August 6, 2009, to discuss these results.
To participate in the teleconference, investors and analysts are invited to call 866-356-4441 in the U.S., or 617-597-5396 outside of the U.S., and reference participant code 49500536. 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 August 20, 2009. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 71738724.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping, Inc., headquartered in New York City, is a leading global owner of Supramax dry bulk vessels, which are dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons, or dwt, 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 U.S. Securities and Exchange Commission.
Visit our website at www.eagleships.com