Attached files
| file | filename |
|---|---|
| 8-K - Eagle Bulk Shipping Inc. | d1041932_8-k.htm |
| EX-99.2 - Eagle Bulk Shipping Inc. | d1041932_ex99-2.htm |
| Press Release | Exhibit 99.1 |
EagleBulk
Shipping Inc. Reports Third Quarter 2009 Results
NEW YORK,
NY, November 4, 2009 -- 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.
1
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
2
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
|
|||||||||||||||
|
September
30, 2009
|
September
30, 2008
|
September
30, 2009
|
September
30, 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.
3
CONSOLIDATED
STATEMENTS OF OPERATIONS:
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
|
September 30, 2009
|
September 30, 2008
|
September 30, 2009
|
September 30, 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 | % |
4
CONSOLIDATED
BALANCE SHEETS:
|
September 30, 2009
|
December 31, 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 | ||||
_______________________
5
CONSOLIDATED
STATEMENTS OF CASH FLOWS:
|
Nine
Months Ended
|
||||||||
|
September
30, 2009
|
September
30, 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 | ||||
6
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:
|
Vessel
|
Year Built
|
Dwt
|
Time Charter
Expiration (1)
|
Daily
Time
Charter Hire 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
(7)
|
2001 | 50,913 |
January
2010
Jan
2010 to Jan 2011/Mar 2011
|
$8,500
$10,500 (with
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
|
|
Wren
(12)
|
2008
|
53,349
|
February
2012
Feb
2012 to Dec 2018/Apr 2019
|
$24,750
$18,000
(with
profit
share)
|
|
Redwing
(13)
|
2007
|
53,411
|
August
2010 to October 2010
|
Index
|
|
Woodstar
(14)
|
2008
|
53,390
|
January
2014
Jan
2014 to Dec 2018/Apr 2019
|
$18,300
$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. |
7
|
|
(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.
|
8
The
following table, as of September 30, 2009, represents certain information about
the Company's newbuilding vessels being constructed and their employment upon
delivery:
|
Vessel
|
Dwt
|
Year Built - Expected Delivery (1)
|
Time
Charter Employment Expiration (2)
|
Daily Time Charter Hire
Rate (3) |
Profit Share
|
|
Bittern (4)
|
58,000
|
Oct
2009
|
Dec
2014
|
$18,850
|
—
|
|
Dec
2014 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Canary
|
58,000
|
2009Q4
|
Jan
2015
|
$18,850
|
—
|
|
Jan
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Thrasher
|
53,100
|
2009Q4
|
Feb
2016
|
$18,400
|
—
|
|
Feb
2016 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Crane
|
58,000
|
2010Q1
|
Feb
2015
|
$18,850
|
—
|
|
Feb
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Avocet
|
53,100
|
2010Q1
|
Mar
2016
|
$18,400
|
—
|
|
Mar
2016 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Egret (5)
|
58,000
|
2010Q1
|
Sep
2012 to Jan 2013
|
$17,650
|
50%
over $20,000
|
|
Golden Eagle
|
56,000
|
2010Q1
|
Charter
Free
|
—
|
—
|
|
Imperial Eagle
|
56,000
|
2010Q1
|
Charter
Free
|
—
|
—
|
|
Gannet (5)
|
58,000
|
2010Q2
|
Oct
2012 to Feb 2013
|
$17,650
|
50%
over $20,000
|
|
Grebe(5)
|
58,000
|
2010Q2
|
Nov
2012 to Mar 2013
|
$17,650
|
50%
over $20,000
|
|
Ibis
(5)
|
58,000
|
2010Q2
|
Dec
2012 to Apr 2013
|
$17,650
|
50%
over $20,000
|
|
Jay
|
58,000
|
2010Q2
|
Sep
2015
|
$18,500
|
50%
over $21,500
|
|
Sep
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Kingfisher
|
58,000
|
2010Q3
|
Oct
2015
|
$18,500
|
50%
over $21,500
|
|
Oct
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $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 (5)
|
58,000
|
2011Q4
|
Jun
2014 to Oct 2014
|
$17,650
|
50%
over $20,000
|
|
Puffin (5)
|
58,000
|
2011Q4
|
Jul
2014 to Nov 2014
|
$17,650
|
50%
over $20,000
|
|
Roadrunner (5)
|
58,000
|
2011Q4
|
Aug
2014 to Dec 2014
|
$17,650
|
50%
over $20,000
|
|
Sandpiper (5)
|
58,000
|
2011Q4
|
Sep
2014 to Jan 2015
|
$17,650
|
50%
over $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.
|
9
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.
EagleBulk 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.
10
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
Contact:
Company
Contact:
Alan
Ginsberg
Chief
Financial Officer
Eagle
Bulk Shipping Inc.
Tel. +1
212-785-2500
Investor
Relations / Media:
Jon
Morgan
Perry Street Communications,
New York
Tel. +1
212-741-0014
--------------------------------------------------------------------------------
Source:
Eagle Bulk Shipping Inc.
SK 25083
0001 1044259
11