Attached files
| file | filename |
|---|---|
| 8-K - Eagle Bulk Shipping Inc. | d1077759_8-k.htm |
| Press Release | Exhibit 99.1 |
Eagle
Bulk Shipping Inc. Reports Fourth Quarter and
Fiscal
Year 2009 Results
NEW YORK,
NY, March 2, 2010 -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) today announced its
results for the fourth quarter and fiscal year ended December 31,
2009.
Financial
highlights included:
For the
Fourth Quarter:
|
|
·
|
Net
Income of $2.19 million or $0.04 per share (based on a weighted average of
62,084,656 diluted shares outstanding for the quarter) on net revenues of
$42.0 million.
|
|
|
·
|
Gross
time charter revenues were $43.6 million. Gross revenues for the
comparable quarter in 2008 were $62.4
million.
|
|
|
·
|
EBITDA,
as adjusted for
exceptional items under the terms of the Company's credit agreement, was
$25.2 million for the fourth quarter of 2009. During the comparable
quarter in 2008 were $33.5 million.
|
|
|
·
|
Fleet
utilization rate for the fourth quarter was
99.6%.
|
|
|
·
|
Took
delivery of two newbuilding vessels, Bittern and Canary, which immediately
entered their respective time
charters.
|
For
Fiscal Year 2009:
|
|
·
|
Net
Income of $33.3 million, or $0.60 per share (based on a weighted average
of 55,923,308 diluted shares outstanding for the period) on net revenues
of $192.6 million. Net income for 2008 was $61.6 million or $1.31 per
share.
|
|
|
·
|
Gross
time charter revenue were $199.9 million in 2009, compared to $194.3
million for the 2008 fiscal year
|
|
|
·
|
EBITDA,
as adjusted for exceptional items under the terms of the Company's credit
agreement, was $121.2 million compared to $127.7 million in
2008.
|
|
|
·
|
Fleet
utilization rate for 2009 was
99.6%.
|
|
|
·
|
Took
delivery of four newbuilding vessels, Crested Eagle, Stellar Eagle,
Bittern and Canary, which immediately entered their respective time
charters.
|
Subsequent
to the end of the 2009 year, in January and February of 2010, the Company took
delivery of six newbuilding vessels, Crane, Avocet, Egret Bulker, Thrasher,
Golden Eagle, and Imperial Eagle. Four of these vessels entered into their
long-term time charters representing minimum aggregate contracted revenues of
$198 million, excluding profit sharing, while two vessels entered into one year
time charters linked to the Baltic Supramax Index.
Sophocles
N. Zoullas, Chairman and Chief Executive Officer, commented, "Eagle Bulk
maintained profitability and continuing operational excellence in 2009, despite
ongoing challenges in the global dry bulk market during the first half of the
year. As the market improved in the latter half of 2009, Eagle Bulk benefited
from our well-timed entry into Baltic Supramax Index-linked ("BSI")
charters. Additional highlights included the successful deliveries of
four newbuild vessels, as well as the favorable amendment to the Company's
credit facility that strengthened and added flexibility to the balance
sheet.
"These
developments have, in turn, allowed us to look forward in 2010 with a focus on
unlocking shareholder value. Already in 2010, we have taken delivery of 6
newbuilds with minimum aggregate contracted revenues of approximately $200
million, excluding profit sharing. For the balance of this year, we have
scheduled additional deliveries
of 7 newbuilds with minimum aggregate contracted revenues in excess of $200
million, excluding profit sharing.
"We are
also poised to benefit from direct participation in the spot market, as 28% of
our 2010 open days are unfixed while an additional 16% of days are tied to the
BSI. In aggregate, this 44% exposure to the spot market occurs
against the backdrop of improved industry fundamentals and recovering dry bulk
demand. With one of the industry's youngest, most versatile fleets,
cash flow stability and a strong operating platform, Eagle Bulk is
well-positioned to create value for its shareholders in the year
ahead."
Results
for the three months ended December 31, 2009 and 2008
For the
fourth quarter of 2009, the Company reported net income of $2,190,694 or $0.04
per share, based on a weighted average of 62,084,656 diluted shares
outstanding.
In the
comparable fourth quarter of 2008, the Company reported net income of $9,159,252
or $0.20 per share, based on a weighted average of 46,915,087 diluted shares
outstanding.
All of
the Company's revenues were earned from time charters. Gross revenues in the
quarter ended December 31, 2009 were $43,550,569, compared to $62,410,576
recorded in the comparable quarter in 2008. Net revenues during the quarter
ended December 31, 2009 were $42,024,017 compared to $59,962,501 in the quarter
ended December 31, 2008. Revenues in 2009 were impacted by lower time charter
rates due to prevailing market conditions. Net revenues recorded in the 2009
quarter include non-cash amortization of fair value below contract value of time
charters acquired of $701,542, compared to a non-cash charge of $535,487
recorded in the 2008 quarter which relates to the fair value below contract
value of time charters acquired. Brokerage commissions incurred on revenues
earned were $2,228,094 and $2,983,561 in the fourth quarters of 2009 and 2008,
respectively.
Total
operating expenses in the quarter ended December 31, 2009 were $31,592,816
compared to $43,539,354 recorded in the fourth quarter of 2008. The Company
operated 27 vessels in the fourth quarter of 2009 compared to 23 vessels in
2008. Despite the increase in fleet size and the corresponding increase in
vessel expenses and depreciation, total operating expenses in the fourth quarter
of 2009 was lower primarily due to lower general and administrative expenses
compared to the previous fourth quarter of 2008, which was also impacted by a
one time write-off relating to conversion of newbuilding contracts into
options.
EBITDA,
adjusted for exceptional items under the terms of the Company's credit
agreement, was $25,189,121 for the fourth quarter of 2009, compared to
$33,474,374 for the fourth quarter of 2008. (Please see below for a
reconciliation of EBITDA to net income).
Results
for the years ended December 31, 2009 and 2008
For the
year ended December 31, 2009, the Company reported net income of $33,287,271 or
$0.60 per share, based on a weighted average of 55,923,308 diluted shares
outstanding.
In the
comparable year ended December 31, 2008, the Company reported net income of
$61,632,809 or $1.31 per share, based on a weighted average of 46,888,788
diluted shares outstanding.
All of
the Company's revenues were earned from Time Charters. Gross revenues for the
year ended December 31, 2009 were $199,851,763, an increase of 3% from the
$194,253,142 recorded in 2008. Net revenues for the year ended December 31, 2009
were $192,574,826 compared to $185,424,949 for 2008, an increase of 4% primarily
due to the operation of a larger fleet in 2009, which, however, was offset by
lower time charter rates. Net revenues in 2009 include non-cash amortization of
the fair value below contract value of time charters acquired of $2,643,820,
compared to $799,540 recorded in 2008. Brokerage commissions incurred on
revenues earned were $9,920,757 and $9,627,733 in 2009 and 2008,
respectively.
Total
operating expenses in 2009 increased to $127,204,266 from $108,669,180 in 2008.
The increase in expenses is attributable to a larger fleet size in operation for
2009. Costs in 2009 were impacted by higher depreciation expenses and increases
in vessel crew costs, insurance costs, costs relating to anti-piracy measures,
and general increases in costs of stores and spares. Despite these increases in
vessel and depreciation expenses, general and administrative expenses were lower
in 2009 compared to 2008, even as the fleet grew in size.
EBITDA,
adjusted for exceptional items under the terms of the Company's credit
agreement, decreased by 5% to $121,238,582 in 2009, from $127,683,156 in 2008.
(Please see below for a reconciliation of EBITDA to net income).
Newbuilding
Program
The
Company had entered into vessel newbuilding contracts at shipyard in Japan and China. During 2009, four
vessels, Crested Eagle,
Stellar Eagle, Bittern and
Canary were constructed and delivered into the Company's fleet. During the
previous year, 2008, three vessels, Wren, Woodstar, and Crowned Eagle, were delivered into the
fleet. As of December 31, 2009, the Company's newbuilding program now consists
of 20 vessels to be built and delivered during 2010-11. As of December 31, 2009,
the Company has recorded advances of $464,173,887 towards the construction cost
of these 20 vessels. These costs include progress payments to the shipyards,
capitalized interest on debt drawn for the progress payments, insurance, legal,
and technical supervision costs. (Table below provides anticipated delivery
dates on the newbuilding fleet).
Liquidity
and Capital Resources
Net cash
provided by operating activities during the years ended December 31, 2009 and
2008 was $90,524,861 and $109,535,918, respectively.
Net cash used in investing activities
during 2009 and 2008, was $228,624,263 and $336,657,686, respectively. Investing
activities in 2009 related to advances for the newbuilding vessel construction
program. Investing activities during 2008 primarily reflected the purchase of
the GOLDENEYE and REDWING, which were delivered in the second and third quarter
of 2008, respectively, and advances for the newbuilding vessel construction
program.
Net cash
provided by financing activities during 2009 and 2008 was $200,235,313 and
$83,426,938, respectively. In 2009, the Company raised $100 million in equity
through its shelf equity program. Gross borrowings in 2009 were $159,215,000 and
the Company used part of the proceeds from the equity offering to repay
$48,645,523 of debt. In 2008, the Company borrowed $192,358,513 from its
revolving credit facility which was used to partly fund the REDWING and fund the
advances for the construction of newbuilding vessels. In 2008, the Company also
paid $93,592,906 in dividends.
As of
December 31, 2009, the cash balance was $71,344,773 compared to a cash balance
of $9,208,862 at December 31, 2008. In addition, $13,500,000 in cash deposits
are maintained with the Company's lender for loan compliance purposes and this
amount is recorded in Restricted Cash on the balance sheet as of December 31,
2009. Also recorded in Restricted Cash is an amount of $276,056 which is
collateralizing a letter of credit relating to the Company's office
lease.
At
December 31, 2009, the Company had outstanding debt of $900,170,880. In August
2009, the Company amended its credit facility which among other things reduced
the facility to $1.2 billion with a maturity in July 2014, amended the
applicable interest margin to 2.5% over LIBOR, and until the Company is in
compliance with the original covenants for two consecutive accounting periods,
amended the collateral covenants from market values to book values, reduced the
EBITDA to interest coverage ratio, and allocated half the net proceeds from any
equity issuance to repay debt and reduce the facility. The repayment of $48.6
million from the last equity offering reduced the facility to $1.151
billion.
Disclosure
of Non-GAAP Financial Measures
EBITDA
represents operating earnings before extraordinary items, depreciation and
amortization, interest expense, and income taxes, if any. EBITDA is included
because it is used by certain investors to measure a company's financial
performance. EBITDA is not an item recognized by GAAP and should not be
considered a substitute for net income, cash flow from operating activities and
other operations or cash flow statement data prepared in accordance with
accounting principles generally accepted in the United States or as a measure of
profitability or liquidity. EBITDA is presented to provide additional
information with respect to the Company's ability to satisfy its obligations
including debt service, capital expenditures, and working capital requirements.
While EBITDA is frequently used as a measure of operating results and the
ability to meet debt service requirements, the definition of EBITDA used here
may not be comparable to that used by other companies due to differences in
methods of calculation.
The
following table is a reconciliation of net income, as reflected in the
consolidated statements of operations, to the Credit Agreement EBITDA for the
three-month periods ended December 31, 2009 and 2008 and for the years ended
December 31, 2009 and 2008:
|
Three
Months ended December 31, 2009
|
Three
Months ended December 31, 2008
|
Year
ended December 31, 2009
|
Year
ended December 31, 2008
|
||||
|
Net
Income/(Loss)
|
$
2,190,694
|
$
9,159,252
|
$33,287,271
|
$61,632,809
|
|||
|
Interest
Expense
|
8,308,289
|
5,302,645
|
28,904,610
|
15,816,573
|
|||
|
Depreciation
and Amortization
|
12,000,856
|
10,229,942
|
44,329,258
|
33,948,840
|
|||
|
Amortization
of fair value (below) above market of time charter
acquired
|
(701,542)
|
(535,487)
|
(2,643,820)
|
(799,540)
|
|||
|
EBITDA
|
21,798,297
|
24,156,352
|
103,877,319
|
110,598,682
|
|||
|
Adjustments
for Exceptional Items:
|
|||||||
|
Write-off
of Advances for Vessel
Construction (1)
|
—
|
3,882,888
|
—
|
3,882,888
|
|||
|
Write-off
of Financing Fees (1)
|
—
|
2,089,701
|
3,383,289
|
2,089,701
|
|||
|
Non-cash
Compensation Expense (2)
|
3,390,824
|
3,345,433
|
13,977,974
|
11,111,885
|
|||
|
Credit
Agreement EBITDA
|
$
25,189,121
|
$
33,474,374
|
$121,238,582
|
$127,683,156
|
|
(1) One
time charge (see Notes to the financial
statements)
(2)
Stock based compensation related to stock options, restricted stock
units.
|
Capital
Expenditures and Drydocking
The
Company's capital expenditures relate to the purchase of vessels and capital
improvements to acquired vessels, which are expected to enhance the revenue
earning capabilities and safety of these vessels. In addition to the capital
expenditures on newbuilding vessels as described above, major capital
expenditures include funding the Company's maintenance program of regularly
scheduled drydocking necessary to preserve the quality of our vessels as well as
to comply with international shipping standards and environmental laws and
regulations. Although the Company has some flexibility regarding the timing of
its drydocking, the costs are relatively predictable. Management anticipates
that vessels are to be drydocked every two and a half years. Funding of these
requirements is anticipated to be met with cash from operations. The Company
anticipates that this process of recertification will require it to reposition
these vessels from a discharge port to shipyard facilities, which will reduce
available days and operating days during that period.
Drydocking
costs incurred are amortized to expense on a straight-line basis over the period
through the date the next drydocking for those vessels are scheduled to occur.
In 2009, eight vessels were drydocked and the Company incurred $4,477,244 in
drydocking related costs. In 2008, three vessels were drydocked at a cost of
$2,388,776.
The following table represents certain information about the estimated costs for
anticipated vessel drydockings in the next four quarters, along with the
anticipated off-hire days:
|
Quarter Ending
|
Off-hire Days(1)
|
Projected Costs(2)
|
|
March
31, 2010
|
44
|
$1.10
million
|
|
June
30, 2010
|
22
|
$0.55
million
|
|
September
30, 2010
|
66
|
$1.65
million
|
|
December
31, 2010
|
44
|
$1.10
million
|
|
(1)
Actual duration of drydocking will vary based on the condition of
the vessel, yard schedules and other factors.
(2)
Actual costs will vary based on various factors, including where
the drydockings are actually
performed.
|
||
Summary
Consolidated Financial and Other Data:
The
following table summarizes the Company's selected consolidated financial and
other data for the periods indicated below.
CONSOLIDATED
STATEMENTS OF OPERATIONS:
|
Year ended
December 31, 2009
|
Year ended
December 31, 2008
|
Three
Months ended
December 31, 2009
|
Three
Months ended
December 31, 2008
|
|||||
|
Revenues,
net of commissions
|
$192,574,826
|
$185,424,949
|
$42,024,017
|
$59,962,501
|
||||
|
Vessel
Expenses
|
50,161,091
|
36,270,382
|
12,662,198
|
11,338,294
|
||||
|
Depreciation
and Amortization
|
44,329,258
|
33,948,840
|
12,000,856
|
10,229,942
|
||||
|
General
and Administrative Expenses
|
32,713,917
|
34,567,070
|
6,929,762
|
18,088,230
|
||||
|
Gain
on Sale of Vessel
|
—
|
—
|
—
|
—
|
||||
|
Write-off
advances for vessel construction
|
—
|
3,882,888
|
—
|
3,882,888
|
||||
|
|
||||||||
|
Total
Operating Expenses
|
127,204,266
|
108,669,180
|
31,592,816
|
43,539,354
|
||||
|
Operating
Income
|
65,370,560
|
76,755,769
|
10,431,201
|
16,423,147
|
||||
|
Interest
Expense
|
28,904,610
|
15,816,573
|
8,308,289
|
5,302,645
|
||||
|
Interest
Income
|
(204,610
|
) |
(2,783,314
|
) |
(67,782
|
) |
(128,451
|
) |
|
Write-off
deferred financing costs
|
3,383,289
|
2,089,701
|
—
|
2,089,701
|
||||
|
Net
Interest Expense
|
32,083,289
|
15,122,960
|
8,240,507
|
7,263,895
|
||||
|
Net
Income
|
$33,287,271
|
$61,632,809
|
$2,190,694
|
$9,159,252
|
||||
|
Weighted
Average Shares Outstanding:
|
||||||||
|
Basic
|
55,897,946
|
46,800,550
|
62,066,463
|
46,915,087
|
||||
|
Diluted
|
55,923,308
|
46,888,788
|
62,084,656
|
46,915,087
|
||||
|
Per
Share Amounts:
|
||||||||
|
Basic
Net Income
|
$0.60
|
$1.32
|
$0.04
|
$0.20
|
||||
|
Diluted
Net Income 0.
|
$0.60
|
$1.31
|
$0.04
|
$0.20
|
||||
|
Cash
dividends declared and paid
|
—
|
$2.00
|
—
|
$0.50
|
|
Fleet
Operating Data
|
||||||||
|
Number
of Vessels in Operating fleet
|
27
|
23
|
27
|
23
|
||||
|
Fleet
Ownership Days
|
9,106
|
7,229
|
2,393
|
2,069
|
||||
|
Fleet
Available Days
|
8,999
|
7,172
|
2,342
|
2,055
|
||||
|
Fleet
Operating Days
|
8,966
|
7,139
|
2,332
|
2,045
|
||||
|
Fleet
Utilization Days
|
99.6%
|
99.5%
|
99.6%
|
99.5%
|
||||
CONSOLIDATED
BALANCE SHEETS:
|
December
31,
|
||||
|
2009
|
2008
|
|||
|
ASSETS:
|
||||
|
Current
assets:
|
||||
|
Cash
and cash equivalents
|
$71,344,773
|
$9,208,862
|
||
|
Accounts
receivable
|
7,443,450
|
4,357,837
|
||
|
Prepaid
expenses
|
4,989,446
|
3,297,801
|
||
|
Fair
value above contract value of time charters acquired
|
427,359
|
—
|
||
|
Total
current assets
|
84,205,028
|
16,864,500
|
||
|
Noncurrent
assets:
|
||||
|
Vessels
and vessel improvements, at cost, net of accumulated
depreciation
of $125,439,001 and $84,113,047, respectively
|
1,010,609,956
|
874,674,636
|
||
|
Advances
for vessel construction
|
464,173,887
|
411,063,011
|
||
|
Other
fixed assets, net of accumulated amortization of $59,519
and $4,556, respectively
|
258,347
|
219,245
|
||
|
Restricted
cash
|
13,776,056
|
11,776,056
|
||
|
Deferred
drydock costs
|
5,266,289
|
3,737,386
|
||
|
Deferred
financing costs
|
21,044,379
|
24,270,060
|
||
|
Fair
value above contract value of time charters acquired
|
4,103,756
|
4,531,115
|
||
|
Fair
value of derivative instruments
|
4,765,116
|
15,039,535
|
||
|
Total
noncurrent assets
|
1,523,997,786
|
1,345,311,044
|
||
|
Total
assets
|
$1,608,202,814
|
$1,362,175,544
|
||
|
LIABILITIES
& STOCKHOLDERS' EQUITY
|
||||
|
Current
liabilities:
|
||||
|
Accounts
payable
|
$2,289,333
|
$2,037,060
|
||
|
Accrued
interest
|
7,810,931
|
7,523,057
|
||
|
Other
accrued liabilities
|
3,827,718
|
3,021,975
|
||
|
Deferred
revenue and fair value below contract value of time charters
acquired
|
7,718,902
|
2,863,184
|
||
|
Unearned
charter hire revenue
|
4,858,133
|
5,958,833
|
||
|
Total
current liabilities
|
26,505,017
|
21,404,109
|
||
|
Noncurrent
liabilities:
|
||||
|
Long-term
debt
|
900,170,880
|
789,601,403
|
||
|
Deferred
revenue and Fair value below contract value of time charters
acquired
|
26,389,796
|
29,205,196
|
||
|
Fair
value of derivative instruments
|
35,408,049
|
50,538,060
|
||
|
Total
noncurrent liabilities
|
961,968,725
|
869,344,659
|
||
|
Total
liabilities
|
988,473,742
|
890,748,768
|
||
|
Commitment
and contingencies
|
||||
|
Stockholders'
equity:
|
||||
|
Preferred
stock, $.01 par value, 25,000,000 shares authorized, none
issued
|
—
|
—
|
||
|
Common
stock, $.01 par value, 100,000,000 shares authorized, 62,126,665 and
47,031,300 shares issued and outstanding, respectively
|
621,267
|
|
470,313
|
|
|
Additional
paid-in capital
|
724,250,125
|
614,241,646
|
||
|
Retained
earnings (net of dividends declared of $262,118,388 as of
December
31, 2009 and 2008, respectively)
|
(74,499,387
|
) |
(107,786,658
|
) |
|
Accumulated
other comprehensive loss
|
(30,642,933
|
) |
(35,498,525
|
) |
|
Total
stockholders' equity
|
619,729,072
|
471,426,776
|
||
|
Total
Liabilities and Stockholders' Equity
|
$1,608,202,814
|
$1,362,175,544
|
||
CONSOLIDATED
STATEMENTS OF CASH FLOWS:
|
Year
Ended December 31,
|
||||||
|
2009
|
2008
|
2007
|
||||
|
Cash
flows from operating activities
|
||||||
|
Net
income
|
$33,287,271
|
$61,632,809
|
$52,243,981
|
|||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||
|
Items
included in net income not affecting cash flows:
|
||||||
|
Depreciation
and amortization
|
41,380,917
|
31,379,443
|
24,791,502
|
|||
|
Amortization
of deferred drydocking costs
|
2,948,341
|
2,569,396
|
1,644,144
|
|||
|
Amortization
of deferred financing costs
|
1,373,998
|
244,837
|
242,357
|
|||
|
Write-off
of deferred financing costs
|
3,383,289
|
2,089,701
|
—
|
|||
|
Write-off
of advances for vessel construction
|
—
|
3,882,888
|
—
|
|||
|
Amortization
of fair value (below) above contract value of time charter acquired
|
(2,643,820
|
) |
(799,540
|
) |
3,740,000
|
|
|
Gain
on sale of vessel
|
—
|
—
|
(872,568
|
) | ||
|
Non-cash
compensation expense
|
13,977,974
|
11,111,885
|
4,256,777
|
|||
|
Changes in operating assets
and liabilities:
|
||||||
|
Accounts
receivable
|
(3,085,613)
|
(965,376
|
) |
(2,776,256)
|
||
|
Prepaid
expenses
|
(1,691,645)
|
(2,139,688
|
) |
(137,292)
|
||
|
Accounts
payable
|
252,273
|
(1,584,499
|
) |
1,971,400
|
||
|
Accrued
interest
|
1,429,939
|
1,707,326
|
(344,933
|
) | ||
|
Accrued
expenses
|
805,743
|
1,158,703
|
146,148
|
|||
|
Drydocking
expenditures
|
(4,477,244
|
) |
(2,388,776
|
) |
(3,624,851
|
) |
|
Deferred
revenue
|
4,684,138
|
—
|
—
|
|||
|
Unearned
charter hire revenue
|
(1,100,700
|
) |
1,636,809
|
1,608,964
|
||
|
Net
cash provided by operating activities
|
90,524,861
|
109,535,918
|
82,889,373
|
|||
|
Cash
flows from investing activities:
|
||||||
|
Vessels
and vessel improvements and Advances for vessel construction
|
(228,530,198
|
) |
(336,438,441
|
) |
(458,262,048
|
) |
|
Purchase
of other fixed assets
|
(94,065
|
) |
(219,245
|
) |
—
|
|
|
Proceeds
from sale of vessel
|
—
|
—
|
12,011,482
|
|||
|
Net
cash used in investing activities
|
(228,624,263
|
) |
(336,657,686
|
) |
(446,250,566
|
) |
|
Cash
flows from financing activities
|
||||||
|
Issuance
of common stock
|
99,999,997
|
237,328
|
239,848,264
|
|||
|
Equity
issuance costs
|
(2,708,951)
|
—
|
(5,642,117
|
) | ||
|
Bank
borrowings
|
159,215,000
|
192,358,513
|
369,708,070
|
|||
|
Repayment
of bank debt
|
(48,645,523
|
) |
—
|
(12,440,000
|
) | |
|
Changes
in restricted cash
|
(2,000,000
|
) |
(2,651,440
|
) |
(2,600,000
|
) |
|
Deferred
financing costs
|
(4,515,623
|
) |
(12,890,502
|
) |
(12,749,841
|
) |
|
Cash
used to settle net share equity awards
|
(1,109,587
|
) |
(34,055
|
) |
—
|
|
|
Cash
dividend
|
—
|
(93,592,906
|
) |
(82,134,982
|
) | |
|
Net
cash provided by financing activities
|
200,235,313
|
83,426,938
|
493,989,394
|
|||
|
Net
increase/(decrease) in Cash
|
62,135,911
|
(143,694,830
|
) |
130,628,201
|
||
|
Cash
at beginning of period
|
9,208,862
|
152,903,692
|
22,275,491
|
|||
|
Cash
at end of period
|
$71,344,773
|
$9,208,862
|
$152,903,692
|
|||
|
Supplemental
cash flow information:
|
||||||
|
Cash
paid during the period for Interest (including Capitalized interest of
$26,643,519, $20,385,190 and $8,775,957 in 2009, 2008 and 2007,
respectively and Commitment Fees)
|
$52,760,344
|
$33,942,541
|
$21,807,953
|
|||
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 our revenue earning
charters on our operating fleet as of December 31, 2009
|
Vessel
|
Year Built
|
Dwt
|
Time Charter Expiration (1)
|
Daily
Time
Charter Hire Rate
|
|
Bittern
(2)
|
2009
|
57,809
|
Jan
2015
Jan
2015 to Dec 2018/Apr 2019
|
$18,850
$18,000
(with profit
share)
|
|
Canary
(3)
|
2009
|
57,809
|
March
2015
Mar
2015 to Dec 2018/Apr 2019
|
$18,850
$18,000
(with profit
share)
|
|
Cardinal
(4)
|
2004
|
55,362
|
September
2010 to November 2010
|
$16,250
|
|
Condor
|
2001
|
50,296
|
Jul
2010 to Oct 2010
|
$22,000
|
|
Crested
Eagle (5)
|
2009
|
55,989
|
January
2011 to April 2011
|
$11,500
+ Index share
|
|
Crowned
Eagle (6)
|
2008
|
55,940
|
March
2010 to May 2010
|
$25,000
|
|
Falcon
|
2001
|
51,268
|
April
2010 to June 2010
|
$39,500
|
|
Goldeneye
(7)
|
2002
|
52,421
|
May
2010 to July 2010
|
Index
|
|
Griffon
|
1995
|
46,635
|
February
2010 to May 2010
|
$9,500
|
|
Harrier
|
2001
|
50,296
|
April
2010 to August 2010
|
$13,500
|
|
Hawk
I
|
2001
|
50,296
|
May
2010 to August 2010
|
$13,000
|
|
Heron
(8)
|
2001
|
52,827
|
January
2011 to May 2011
|
$26,375
|
|
Jaeger
(9)
|
2004
|
52,248
|
April
2010 to July 2010
|
$26,000
|
|
Kestrel
I
|
2004
|
50,326
|
March
2010 to July 2010
|
$11,500
|
|
Kite
(10)
|
1997
|
47,195
|
November
2010 to January 2011
|
$17,000
|
|
Kittiwake
(11)
|
2002
|
53,146
|
August
2010 to October 2010
|
Index
|
|
Merlin
(12)
|
2001
|
50,296
|
December
2010 to March 2011
|
$25,000
|
|
Osprey
I (13)
|
2002
|
50,206
|
March
2010 to May 2010
|
$18,000
|
|
Peregrine
(14)
|
2001
|
50,913
|
January
2010
Jan
2010 to Oct 2010/Mar 2011
|
$8,500
$10,500
+ Index share
|
|
Redwing
(15)
|
2007
|
53,411
|
August
2010 to October 2010
|
Index
|
|
Shrike
|
2003
|
53,343
|
May
2010 to August 2010
|
$25,600
|
|
Skua
(16)
|
2003
|
53,350
|
September
2010 to November 2010
|
Index
|
|
Sparrow
(17)
|
2000
|
48,225
|
February
2010 to May 2010
|
$10,000
|
|
Stellar
Eagle
|
2009
|
55,989
|
February
2010 to May 2010
|
$12,000
|
|
Tern
|
2003
|
50,200
|
December
2009 to March 2010
|
$8,500
|
|
Woodstar
(18)
|
2008
|
53,390
|
Mar
2010 to June2010/Aug 2010
January
2014
Jan
2014 to Dec 2018/Apr 2019
|
$23,500
$18,300
$18,000
(with profit
share)
|
|
Wren
(19)
|
2008
|
53,349
|
Dec
2011
Dec
2011 to Dec 2018/Apr 2019
|
$24,750
$18,000
(with profit
share)
|
|
(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
BITTERN has entered into a long-term charter. The charter rate until Jan
2015 is $18,850 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
$18,479.
|
|
(3)
|
The
CANARY has entered into a long-term charter. The charter rate until March
2015 is $18,850 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
$18,487.
|
|
(4)
|
Upon
conclusion of the previous charter in September 2009, the CARDINAL
commenced a new one year charter at $16,250 per day.
|
|
(5)
|
The
charterer of the CRESTED EAGLE has exercised an option to extend the
charter period by 11 to 13 months from February 2010 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.
|
|
(6)
|
Upon
completion of the previous charter in December 2009, the CROWNED EAGLE
commenced a charter for three to five months at $25,000 per
day.
|
|
(7)
|
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.
|
|
(8)
|
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.
|
|
(9)
|
Upon
completion of the previous charter in January 2010, the JAEGER commenced a
charter for three to five months at $26,000 per day.
|
|
(10)
|
Upon
completion of the previous charter in January 2010, the KITE commenced a
one year charter at $17,000 per day.
|
|
(11)
|
Upon
conclusion of the previous charter, the KITTIWAKE entered 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.
|
|
(12)
|
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.
|
|
(13)
|
Upon
completion of the previous charter in December 2009, the OSPREY I
commenced a charter for four to six months at $18,000 per
day.
|
|
(14)
|
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.
|
|
(15)
|
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.
|
|
(16)
|
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.
|
|
(17)
|
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%.
|
|
(18)
|
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.
|
|
(19)
|
The
WREN has entered into a long-term charter. The charter rate until Dec 2011
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.
|
The
following table, as of December 31, 2009, represents certain information about
the Company's newbuilding vessels being constructed and their employment upon
delivery:
|
Vessel
|
Dwt
|
Year Built –
Actual or
Expected Delivery (1)
|
Time Charter Employment
Expiration (2)
|
Daily Time Charter Hire Rate
(3)
|
Profit Share
|
|
Thrasher (4)
(5)
|
53,100
|
2010Q1
|
Apr
2016
|
$18,400
|
—
|
|
Apr
2016 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Crane (4)
(6)
|
58,000
|
2010Q1
|
Apr
2015
|
$18,850
|
—
|
|
Apr
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Avocet (4)
(7)
|
53,100
|
2010Q1
|
May
2016
|
$18,400
|
—
|
|
May
2016 to Dec 2018/May 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Egret Bulker (4)
|
58,000
|
2010Q1
|
Oct
2012 to Feb 2013
|
$17,650
|
50%
over $20,000
|
|
Golden Eagle (4)
|
56,000
|
2010Q1
|
Dec
2010 to Mar 2011
|
Index
|
—
|
|
Imperial Eagle (4)
|
56,000
|
2010Q1
|
Jan
2010 to Mar 2011
|
Index
|
—
|
|
Gannet Bulker (8)
|
58,000
|
2010Q2
|
Jan
2013 to May 2013
|
$17,650
|
50%
over $20,000
|
|
Grebe Bulker
(8)
|
58,000
|
2010Q2
|
Jan
2013 to May 2013
|
$17,650
|
50%
over $20,000
|
|
Ibis Bulker
(8)
|
58,000
|
2010Q2
|
Mar
2013 to Jul 2013
|
$17,650
|
50%
over $20,000
|
|
Jay
|
58,000
|
2010Q3
|
Dec
2015
|
$18,500
|
50%
over $21,500
|
|
Dec
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Kingfisher
|
58,000
|
2010Q3
|
Dec
2015
|
$18,500
|
50%
over $21,500
|
|
Dec
2015 to Dec 2018/Apr 2019
|
$18,000
|
50%
over $22,000
|
|||
|
Martin
|
58,000
|
2010Q3
|
Feb
2017 to Feb 2018
|
$18,400
|
—
|
|
Thrush
|
53,100
|
2010Q4
|
Charter
Free
|
—
|
—
|
|
Nighthawk
|
58,000
|
2011Q1
|
Sep
2017 to Sep 2018
|
$18,400
|
—
|
|
Oriole
|
58,000
|
2011Q3
|
Jan
2018 to Jan 2019
|
$18,400
|
—
|
|
Owl
|
58,000
|
2011Q3
|
Feb
2018 to Feb 2019
|
$18,400
|
—
|
|
Petrel (8)
|
58,000
|
2011Q4
|
Jun
2014 to Oct 2014
|
$17,650
|
50%
over $20,000
|
|
Puffin (8)
|
58,000
|
2011Q4
|
Jul
2014 to Nov 2014
|
$17,650
|
50%
over $20,000
|
|
Roadrunner (8)
|
58,000
|
2011Q4
|
Aug
2014 to Dec 2014
|
$17,650
|
50%
over $20,000
|
|
Sandpiper (8)
|
58,000
|
2011Q4
|
Sep
2014 to Jan 2015
|
$17,650
|
50%
over $20,000
|
|
CONVERTED INTO OPTIONS
|
|||||
|
Snipe (10)
|
58,000
|
2012Q1
|
Charter
Free
|
—
|
—
|
|
Swift (10)
|
58,000
|
2012Q1
|
Charter
Free
|
—
|
—
|
|
Raptor (10)
|
58,000
|
2012Q2
|
Charter
Free
|
—
|
—
|
|
Saker (10)
|
58,000
|
2012Q2
|
Charter
Free
|
—
|
—
|
|
Besra
(9,10)
|
58,000
|
2011Q4
|
Charter
Free
|
—
|
—
|
|
Cernicalo (9,10)
|
58,000
|
2011Q1
|
Charter
Free
|
—
|
—
|
|
Fulmar (9,10)
|
58,000
|
2011Q3
|
Charter
Free
|
—
|
—
|
|
Goshawk (9,10)
|
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
THRASHER, CRANE, AVOCET, EGRET BULKER, GOLDEN EAGLE and IMPERIAL EAGLE
delivered in the first quarter of 2010.
|
|
|
(5)
|
The
THRASHER has entered into a long-term charter. The charter rate until
April 2016 is $18,400 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
$18,272.
|
|
|
(6)
|
The
CRANE has entered into a long-term charter. The charter rate until April
2015 is $18,850 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
$18,489.
|
|
|
(7)
|
The
AVOCET has entered into a long-term charter. The charter rate until May
2016 is $18,400 per day. Subsequently, the charter until redelivery in
December 2018 to May 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
$18,274.
|
|
|
(8)
|
The
charterer has an option to extend the charter by 2 periods of 11 to 13
months each.
|
|
|
(9)
|
Options
for construction declared on December 27, 2007.
|
|
|
(10)
|
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 Wednesday, March
3, 2010, to discuss these results.
To
participate in the teleconference, investors and analysts are invited to call
866-831-6267 in the U.S.,
or 617-213-8857 outside of the U.S., and reference participant
code 63596371. A simultaneous webcast of the call, including a slide
presentation for interested investors and others, may be accessed by visiting
http://www.eagleships.com.
A replay
will be available following the call until 11:59 PM ET on March 10th, 2010. To
access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of
the U.S., and reference
passcode 29309520.
About
Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a
Marshall Islands corporation headquartered in New York. The Company is a leading
global owner of Supramax dry bulk vessels that range in size from 50,000 to
60,000 deadweight tons and transport a broad range of major and minor bulk
cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide
shipping routes.
Forward-Looking
Statements
Matters
discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of historical
facts.
The
forward-looking statements in this release are based upon various assumptions,
many of which are based, in turn, upon further assumptions, including without
limitation, management's examination of historical operating trends, data
contained in our records and other data available from third parties. Although
Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will
achieve or accomplish these expectations, beliefs or projections.
Important
factors that, in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including changes in
charter hire rates and vessel values, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled drydocking, changes in
our vessel operating expenses, including dry-docking and insurance costs, or
actions taken by regulatory authorities, potential liability from future
litigation, domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events or acts by
terrorists.
Risks and
uncertainties are further described in reports filed by Eagle Bulk Shipping Inc.
with the US Securities and Exchange Commission.
Visit our
website at www.eagleships.com
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
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Source:
Eagle Bulk Shipping Inc.