Eagle Bulk Shipping Inc. Reports Third Quarter 2009 Results


NEW YORK, Nov. 4, 2009 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the third quarter of 2009.



 Third quarter 2009 highlights included:

 * Net Income, as adjusted for one-time, non-cash charge relating
   to the amendment to the Company's credit facility, of
   $3.9 million or $0.06 per share (based on a weighted average of
   62.0 million shares).  Net Income for the quarter without this
   adjustment was $0.5 million or $0.01 per share.
 * Net Revenues were $41.6 million;
 * EBITDA, as adjusted for exceptional items under the terms of the
   Company's credit agreement, was $25.0 million;
 * Fleet utilization rate for the third quarter was 99.7%.
 * Four vessels in the fleet were chartered on rates that are tied
   to the Baltic Supramax Index ("BSI")

Subsequent to the close of the third quarter, Eagle Bulk successfully took delivery of the Bittern, a 58,000 dwt Supramax dry bulk vessel. The vessel immediately entered service into a previously contracted ten year time charter. The charter rate through December 2014 is $18,850 per day; thereafter the contract converts to a profit-sharing charter with a base rate of $18,000 per day. In aggregate, the Bittern is expected to contribute approximately $62 million in minimum contracted revenue.

Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "Eagle Bulk's third quarter performance highlights steady cash flow and continued solid operating performance, with a utilization rate of 99.7%. During the quarter, we opportunistically sought to balance our fixed-rate charters with four index-based charters that are performing well. Looking forward, charter coverage of 63% for 2010 will ensure revenue stability with upside potential, while newbuild deliveries increase EBITDA."

Mr. Zoullas continued, "Our fleet expanded with the delivery of the Bittern, a Supramax newbuilding, which commenced a long-term time charter. By the end of the first quarter 2010, Eagle Bulk's fleet expansion will accelerate as the Company takes delivery of seven vessels. Of these, two are open and five have charters in place, representing minimum contracted revenues of $259 million."

Results of Operations for the three month period ended September 30, 2009

For the third quarter of 2009, the Company reported net income of $512,261 or $0.01 per share, based on a weighted average of 61,986,752 diluted shares outstanding. In the comparable third quarter of 2008, the Company reported net income of $23,221,617 or $0.49 per share, based on a weighted average of 47,066,254 diluted shares outstanding. Net income declined due to lower charter rates on some of the Company's vessels.

All of the Company's revenues were earned from time charters. Gross time charter revenues in the quarter ended September 30, 2009 were $43,688,025 compared to $54,169,749 recorded in the comparable quarter in 2008. Gross revenues declined due to prevailing market conditions. Vessels with legacy time charters saw lower rates upon charter renewals. Third party brokerage commissions incurred on those gross revenues were $2,136,220 and $2,616,517, respectively. Net revenues during the quarter ended September 30, 2009, were $41,551,805 compared to $51,553,232 in the quarter ended September 30, 2008.

Total operating expenses were $30,428,069 in the quarter ended September 30, 2009 compared to $25,002,973 recorded in the third 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 and dry-dock amortization expenses.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased by 36% to $24,984,274 for the third quarter of 2009, from $38,858,408 for the third quarter of 2008. (Please see below for a reconciliation of EBITDA to net income).

Results of Operations for the nine month period ended September 30, 2009

For the nine months ended September 30, 2009, the Company reported net income of $31,096,577 or $0.58 per share, based on a weighted average of 53,831,913 diluted shares outstanding. In the comparable period of 2008, the Company reported net income of $52,473,557 or $1.11 per share, based on a weighted average of 47,062,811 diluted shares outstanding.

All of the Company's revenues were earned from time charters. Gross time charter revenues for the nine month period ended September 30, 2009 were $158,243,472, an increase of 20% from $131,951,183 recorded in the comparable period in 2008, primarily due to the operation of a larger fleet. Brokerage commissions incurred on those gross revenues were $7,692,663 and $6,488,735, respectively. Net revenues during the nine-month period ended September 30, 2009, increased 20% to $150,550,809 from $125,462,448 in the comparable period in 2008.

Total operating expenses were $95,611,450 in the nine month period ended September 30, 2009 compared to $65,129,826 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, was $96,049,461 for the nine months ended September 30, 2009, compared to $94,208,782 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 nine month periods ended September 30, 2009 and 2008, was $80,594,642 and $81,593,271, respectively, primarily related to operation of a larger fleet and higher rates on legacy time charters, net of lower rates on charter renewals.

Net cash used in investing activities during the nine month period ended September 30, 2009, was $145,857,288, compared to $273,887,573 during the corresponding nine month period ended September 30, 2008. Investing activities primarily related to progress payments and related construction expenses for the newbuilding vessels.

Net cash provided by financing activities during the nine month period ended September 30, 2009, was $138,598,251, compared to net cash provided by financing activities of $72,374,980 during the corresponding period in 2008. Financing activities during the nine month period ended September 30, 2009 included receipt of $97,291,046 in net proceeds from the distribution of common shares of the Company, gross borrowings of $95,770,000 from the revolving credit facility, and loan repayments of $48,645,523 to lenders under the terms of the amended debt agreement which went into effect during third quarter.

As of September 30, 2009, the Company's cash balance was $82,544,467, 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 September 30, 2009.

At September 30, 2009, the Company had outstanding debt of $836,725,880 which was borrowed under its revolving credit facility. These borrowings consisted of $416,233,690 for the 25 vessels in operation as of September 30, 2009, and $420,492,190 in progress payments and advances to fund the Company's 22 vessel newbuilding construction program. In August 2009, the Company successfully amended its revolving credit facility on terms that will provide the Company with enhanced financial flexibility. 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. In connection with this amendment the Company recorded a one-time non-cash charge of $3,383,289 relating to the write-off of a portion of deferred finance costs associated with the reduction of the credit facility.

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        Nine Months Ended
 ---------------------------------------------------------------------
                      Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                           2009         2008         2009         2008
 ---------------------------------------------------------------------
 Net Income            $512,261  $23,221,617  $31,096,577  $52,473,557
 ---------------------------------------------------------------------
 Interest Expense     7,294,151    3,714,458   20,596,321   10,513,928
 ---------------------------------------------------------------------
 Depreciation and
  Amortization       11,094,238    8,991,877   32,328,402   23,718,898
 ---------------------------------------------------------------------
 Amortization of
  fair value below
  contract value of
  time charters
  acquired             (645,098)    (264,053)  (1,942,278)    (264,053)
 ---------------------------------------------------------------------
 EBITDA              18,255,552   35,663,899   82,079,022   86,442,330
 ---------------------------------------------------------------------
 Adjustments for
  Exceptional Items:
 ---------------------------------------------------------------------
 Write-off of
  Financing Fees      3,383,289           --    3,383,289           --
 ---------------------------------------------------------------------
 Non-cash
  Compensation
  Expense             3,345,433    3,194,509   10,587,150    7,766,452
 ---------------------------------------------------------------------
 Credit Agreement
  EBITDA            $24,984,274  $38,858,408  $96,049,461  $94,208,782
 -------------------==================================================

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         Nine Months Ended
                    --------------------------------------------------
                     Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                     ---------    ---------    ---------    ---------
                       2009         2008         2009         2008
                       ----         ----         ----         ----


 Revenues, net of
  Commissions       $41,551,805  $51,553,232 $150,550,809 $125,462,448

 Vessel Expenses     11,493,889    9,344,348   37,498,893   24,932,088
 Depreciation and
  Amortization       11,094,238    8,991,877   32,328,402   23,718,898

 General and
  Administrative
  Expenses            7,839,942    6,666,748   25,784,155   16,478,840
                    ------------------------  ------------------------

  Total Operating
   Expenses          30,428,069   25,002,973   95,611,450   65,129,826
                    ------------------------  ------------------------


 Operating Income    11,123,736   26,550,259   54,939,359   60,332,622

 Interest Expense     7,294,151    3,714,458   20,596,321   10,513,928
 Interest Income        (65,965)    (385,816)    (136,828)  (2,654,863)
 Write-off of
  Deferred Financing
  Costs               3,383,289           --    3,383,289           --
                    ------------------------  ------------------------

  Net Interest
   Expense           10,611,475    3,328,642   23,842,782    7,859,065
                    ------------------------  ------------------------


 Net Income            $512,261  $23,221,617  $31,096,577  $52,473,557
                    ===========  ===========  ===========  ===========


 Weighted Average
  Shares
  Outstanding :
 Basic               61,976,794   46,770,486   53,808,348   46,762,092
 Diluted             61,986,752   47,066,254   53,831,913   47,062,811

 Per Share Amounts:
 Basic Net Income         $0.01       $ 0.50        $0.58       $ 1.12
 Diluted Net Income       $0.01       $ 0.49        $0.58       $ 1.11
 Cash Dividends
  Declared and Paid          --       $ 0.50           --       $ 1.50


 Fleet Operating
  Data
  ----
 Number of Vessels
  in Operating fleet         25           21           25          21
 Fleet Ownership
  Days                    2,300        1,866        6,713       5,160
 Fleet Available
  Days                    2,271        1,862        6,657       5,117
 Fleet Operating
  Days                    2,264        1,845        6,634       5,094
 Fleet Utilization
  Days                    99.7%        99.1%        99.7%       99.6%


 CONSOLIDATED BALANCE SHEETS:
                                         September 30,   December 31,
                                             2009            2008
                                        --------------  --------------
  ASSETS:                                  (Unaudited)
   Current assets:
    Cash and cash equivalents           $   82,544,467  $    9,208,862
    Accounts receivable                      5,825,416       4,357,837
    Prepaid expenses                         5,348,972       3,297,801
                                        --------------  --------------
     Total current assets                   93,718,855      16,864,500
                                        --------------  --------------
  Noncurrent assets:
  Vessels and vessel improvements, at
   cost, net of accumulated depreciation
   of $114,516,274 and $84,113,047,
   respectively                            919,565,338     874,674,636
  Advances for vessel construction         483,414,622     411,063,011
  Other fixed assets, net of accumulated
   amortization of $25,755 and $4,556,
   respectively                                283,895         219,245
  Restricted cash                           12,776,056      11,776,056

  Deferred drydock costs                     4,805,679       3,737,386
  Deferred financing costs                  22,012,037      24,270,060
  Fair value above contract value of
   time charters acquired                    4,531,115       4,531,115
  Fair value of derivative instruments       5,984,686      15,039,535
                                        --------------  --------------
    Total noncurrent assets              1,453,373,428   1,345,311,044
                                        --------------  --------------
 Total assets                           $1,547,092,283  $1,362,175,544
                                        ==============  ==============
 LIABILITIES & STOCKHOLDERS' EQUITY
  Current liabilities:
  Accounts payable                      $    1,402,289  $    2,037,060
  Accrued interest                           7,717,705       7,523,057
  Other accrued liabilities                 10,473,346       3,021,975
  Deferred revenue and fair value below
   contract value of time charters
   acquired                                  8,570,051       2,863,184
  Unearned charter hire revenue              5,754,126       5,958,833
                                        --------------  --------------
    Total current liabilities               33,917,517      21,404,109
                                        --------------  --------------
  Noncurrent liabilities:
  Long-term debt                           836,725,880     789,601,403
  Fair value below contract value of
   time charters acquired                   25,050,597      29,205,196
  Fair value of derivative instruments      41,365,655      50,538,060
                                        --------------  --------------
    Total noncurrent liabilities           903,142,132     869,344,659
                                        --------------  --------------
  Total liabilities                        937,059,649     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,
   61,986,777 and 47,031,300 shares
   issued and outstanding                      619,868         470,313
  Additional paid-in capital               721,483,816     614,241,646
  Retained earnings (net of dividends
   declared of $262,188,388)               (76,690,081)   (107,786,658)
  Accumulated other comprehensive loss     (35,380,969)    (35,498,525)
                                        --------------  --------------
     Total stockholders' equity            610,032,634     471,426,776
                                        --------------  --------------
  Total liabilities and
   stockholders' equity                 $1,547,092,283  $1,362,175,544
                                        ==============  ==============

 CONSOLIDATED STATEMENTS OF CASH FLOWS:

                                              Nine Months Ended
                                         September 30,   September 30,
                                        --------------  --------------
                                             2009            2008
                                             ----            ----

 Cash flows from operating activities:
 Net income                             $   31,096,577  $   52,473,557
 Adjustments to reconcile net income to
  net cash provided by operating
  activities: Items included in net
  income not affecting cash flows:
 Depreciation and amortization              30,424,426      21,816,618
 Amortization of deferred drydocking
  costs                                      1,903,976       1,902,280
 Amortization of deferred financing
  costs                                        881,728         185,508
 Amortization of fair value below
  contract value of time charter
  acquired                                  (1,942,278)       (264,053)
 Write-off of Deferred Financing Costs       3,383,289              --
 Non-cash compensation expense              10,587,150       7,766,452
  Changes in operating assets and
   liabilities:
 Accounts receivable                        (1,467,579)       (489,213)
 Prepaid expenses                           (2,051,171)     (2,409,563)
 Accounts payable                             (634,771)     (3,288,849)
 Accrued interest                              644,354         573,342
 Accrued expenses                            7,025,387       1,056,589
 Drydocking expenditures                    (2,546,285)     (1,701,042)
 Deferred revenue                            3,494,546              --
 Unearned charter hire revenue                (204,707)      3,971,645
                                        --------------  --------------

  Net cash provided by operating
   activities                               80,594,642      81,593,271

   Cash flows from investing activities:
 Vessels and vessel improvements and
  advances for vessel construction        (145,771,439)   (273,766,850)
 Purchase of other assets                      (85,849)       (120,723)
                                        --------------  --------------

  Net cash used in investing activities   (145,857,288)   (273,887,573)

  Cash flows from financing activities:
 Issuance of Common Stock                   99,999,997              --
 Proceeds from exercise of stock options            --         237,327
 Equity issuance costs                      (2,708,951)             --
 Bank borrowings                            95,770,000     144,724,967
 Repayment of bank debt                    (48,645,523)             --
 Changes in restricted cash                 (1,000,000)     (1,651,440)
 Deferred financing costs                   (4,330,801)       (786,811)
 Cash used to settle net share equity
  awards                                      (486,471)             --
 Cash dividends                                     --     (70,149,063)
                                        --------------  --------------

  Net cash provided by financing
   activities                              138,598,251      72,374,980

 Net increase/(decrease) in cash            73,335,605    (119,919,322)
 Cash at beginning of period                 9,208,862     152,903,692
                                        --------------  --------------
  Cash at end of period                 $   82,544,467  $   32,984,370
                                        ==============  ==============

Commercial and strategic management of the Company's 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 technical management of the fleet is provided by unaffiliated third party technical managers. In the third quarter of 2009, the Company set up its own in-house vessel management company, in order to establish a vessel management bench-mark with its external technical managers.

The following table represents certain information about the Company's revenue earning charters on its operating fleet as of September 30, 2009:



 ----------------------------------------------------------------------
                                                          Daily Time
            Year                                         Charter Hire
 Vessel     Built  Dwt    Time Charter Expiration (1)        Rate
 ------     ----   ---    ---------------------------    -------------
 Cardinal
  (2)       2004  55,362  September 2010 to November 2010     $16,250
 Condor     2001  50,296  May 2010 to July 2010               $22,000
 Falcon     2001  51,268  April 2010 to June 2010             $39,500
 Griffon    1995  46,635  February 2010 to May 2010            $9,500
 Harrier    2001  50,296  April 2010 to June 2010             $13,500
 Hawk I     2001  50,296  May 2010 to August 2010             $13,000
 Heron (3)  2001  52,827  January 2011 to May 2011            $26,375
 Jaeger
  (4)       2004  52,248  October 2009 to January 2010        $10,100
 Kestrel I  2004  50,326  March 2010 to July 2010             $11,500
 Kite (5)   1997  47,195  September 2009 to January 2010       $9,500
 Merlin
  (6)       2001  50,296  December 2010 to March 2011         $25,000
 Osprey I   2002  50,206  October 2009 to December 2009       $25,000
                                
 Peregrine                                                    $8,500
  (7)       2001  50,913  January 2010                   $10,500 (with
                          Jan 2010 to Jan 2011/Mar 2011   Index share)
 Sparrow
  (8)       2000  48,225  February 2010 to May 2010           $10,000
 Tern       2003  50,200  December 2009 to March 2010          $8,500
 Shrike     2003  53,343  May 2010 to August 2010             $25,600
 Skua (9)   2003  53,350  September 2010 to November 2010      Index
 Kittiwake
  (10)      2002  53,146  June 2010 to September 2010          Index
 Goldeneye
  (11)      2002  52,421  May 2010 to July 2010                Index

                                                              $24,750
 Wren (12)  2008  53,349  February 2012                  $18,000 (with
                          Feb 2012 to Dec 2018/Apr 2019  profit share)
 Redwing
  (13)      2007  53,411  August 2010 to October 2010          Index

 Woodstar   2008  53,390  January 2014                        $18,300
   (14)                   Jan 2014 to Dec 2018/Apr 2019  $18,000 (with
                                                         profit share)
 Crowned
  Eagle     2008  55,940  September 2009 to December 2009     $16,000
 Crested
  Eagle
  (15)      2009  55,989  December 2009 to March 2010         $10,500
 Stellar
  Eagle     2009  55,989  February 2010 to May 2010           $12,000
----------------------------------------------------------------------

 (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)  Upon conclusion of the previous charter in September 2009, the
      CARDINAL commenced a new one year charter at $16,250 per day.

 (3)  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.

 (4)  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. Revenue recognition is
      based on an average daily rate of $10,100.

 (5)  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
      has being recognized into revenue ratably until September 2009.

 (6)  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.

 (7)  The charterer of the PEREGRINE has exercised the option to
      extend the charter period by 11 to 13 months. The rate for the
      option period is index based with a minimum daily time charter
      rate of $10,500 and a profit share which is equal to 50% of the
      difference between the base rate and the average of the trailing
      Baltic Supramax Index for each 30 day hire period.

 (8)  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%.

 (9)  Upon conclusion of the previous time charter in August 2009, the
      SKUA 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 45 days of the charter the index rate will be a
      maximum of $19,000 per day.

 (10) Upon conclusion of the previous time charter, in July 2009, the
      KITTIWAKE performed a short term charter at $18,000 per day and
      then entered into another short term time charter at $25,000 per
      day. Subsequently, in October 2009, 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.

 (11) Upon conclusion of the previous time charter, in September 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.

 (12) 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.

 (13) Upon conclusion of the previous time charter in August 2009, the
      REDWING 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 45 days of the charter the index rate will be a
      maximum of $19,000 per day.

 (14) 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.

 (15) 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 is based on the trailing BSI TC average for the month.

The following table, as of September 30, 2009, represents certain information about the Company's newbuilding vessels being constructed and their employment upon delivery:



----------------------------------------------------------------------
                      Year       Time Charter     Daily
                    --------  -----------------  -------
 Vessel      Dwt     Built -     Employment        Time   Profit Share
 ---------  ------  --------  -----------------  -------  ------------
                    Expected    Expiration (2)   Charter
                    --------  -----------------  -------
                    Delivery                      Hire
                    --------                     -------
                       (1)                       Rate (3)
                    --------                     -------
 Bittern    58,000  Oct 2009  Dec 2014           $18,850            --
  (4)                         Dec 2014 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Canary     58,000   2009Q4   Jan 2015           $18,850            --
                              Jan 2015 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Thrasher   53,100   2009Q4   Feb 2016           $18,400            --
                              Feb 2016 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Crane      58,000   2010Q1   Feb 2015           $18,850            --
                              Feb 2015 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Avocet     53,100   2010Q1   Mar 2016           $18,400            --
                              Mar 2016 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Egret      58,000   2010Q1   Sep 2012 to                     50% over
  (5)                         Jan 2013           $17,650       $20,000
 Golden
  Eagle     56,000   2010Q1   Charter Free            --            --
 Imperial
  Eagle     56,000   2010Q1   Charter Free            --            --
 Gannet     58,000   2010Q2   Oct 2012 to                     50% over
  (5)                         Feb 2013           $17,650       $20,000
 Grebe(5)   58,000   2010Q2   Nov 2012 to                     50% over
                              Mar 2013           $17,650       $20,000
 Ibis (5)   58,000   2010Q2   Dec 2012 to                     50% over
                              Apr 2013           $17,650       $20,000
 Jay        58,000   2010Q2   Sep 2015           $18,500      50% over
                                                               $21,500
                              Sep 2015 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000
 Kingfisher 58,000   2010Q3   Oct 2015           $18,500      50% over
                                                               $21,500
                              Oct 2015 to                     50% over
                              Dec 2018/Apr 2019  $18,000       $22,000

 Martin     58,000   2010Q3   Dec 2016 to
                              Dec 2017           $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     58,000   2011Q4   Jun 2014 to                     50% over
  (5)                         Oct 2014           $17,650       $20,000
 Puffin     58,000   2011Q4   Jul 2014 to                     50% over
  (5)                         Nov 2014           $17,650       $20,000
 Road
  -runner   58,000   2011Q4   Aug 2014 to                     50% over
  (5)                         Dec 2014           $17,650       $20,000
 Sandpiper  58,000   2011Q4   Sep 2014 to                     50% over
  (5)                         Jan 2015           $17,650       $20,000

 CONVERTED
  INTO
  OPTIONS
  -------
 Snipe (7)  58,000   2012Q1   Charter Free            --            --
 Swift (7)  58,000   2012Q1   Charter Free            --            --
 Raptor
  (7)       58,000   2012Q2   Charter Free            --            --
 Saker (7)  58,000   2012Q2   Charter Free            --            --
 Besra
  (6,7)     58,000   2011Q4   Charter Free            --            --
 Cernicalo
  (6,7)     58,000   2011Q1   Charter Free            --            --
 Fulmar
  (6,7)     58,000   2011Q3   Charter Free            --            --
 Goshawk
  (6,7)     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 BITTERN was delivered in October 2009.

 (5) The charterer has an option to extend the charter by 2 periods of
     11 to 13 months each.

 (6) Options for construction declared on December 27, 2007.

 (7) 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, November 5th, 2009, to discuss these results.

To participate in the teleconference, investors and analysts are invited to call 800-573-4840 in the U.S., or 617-224-4326 outside of the U.S., and reference participant code 19856539. 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 November 12th, 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 96143049.

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



            

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