Bulk Shipping Inc. (NYSE) During the period that ended the third quarter in 2023, EGLE recorded revenue amounting to $82.6 million and loss after taxation valued at $5.2 million or $0.55 per basic share. The company had TCE for $11,482 during this period and sold the Sankaty Eagle vessel. The firm paid out a dividend of $0.10 per share during Q3. It gave a glance at their modern fleet, good finances and optimism for the dry bulb business. The company also calculates other non-GAAP metrics such as adjusted net (loss) income, earnings before interest, taxes depreciation and amortisation (EBITDA), time charter equivalent revenue and adjusted vessel operating expenses to support investor evaluation.
Quarter Highlights
- Relevancy and net of generating revenues of $82.6 million.
- TCE Revenue of $54.1 million, equating to a TCE of $11,482.
- Had a net loss of $5.2 million; earnings per basic share was $-0.55.
- Net adjusted loss of $2.9m or 31 cents/basic share.
- Adjusted EBITDA (generated) at $ 15.6 mil.
- Sankaty Eagle- a scrubber-fitted non-core Supramax bulk carrier was fully sold.
- A quarterly dividend of $0.10 per share has been declared for the third quarter of 2023.
Recent Developments
- Fourth-quoted coverage position for 2023’s last quarter stands at approximately 68% of owned working days average TCE = $15.655.
- The market fundamentals continued to be tough during the period, as the average of the Baltic Supramax Index hovered around the $10,000 mark.
- Freight rates hit the lowest point in the quarter and rallied strongly in September reaching as high as US$ 15k.
- Pursue operational efficiencies such as cuts in OPEX, utilizing voyage optimizers among others on fuel and emission savings.
- The dry bulk industry faces a rosy medium-term future outlook.
Fleet Operating Data
- Ownership Days: 4,808 for the quarter.
- Owned Available Days: 4,708 for the quarter.
- In line with this, the owned fleet consists of 52 vessels with scrubbing installed in most (96%) and average age of 10.0 years.
Nine-Month Financial Data through Sept. 30, 2023
- Net loss amounted to $5.2 million for the quarter ending on September 30th, 2023, while it recorded net income of $77.2 million during the corresponding quarter in the year 2022.
- Net loss adjusted to $2.9 million for the three months ended September 2023.
- This was a decrease in revenues, net, especially for reduced per-day charges on both time and voyage charters.
- Financial Data for Nine Months Ended September 30, 2023
Understanding Non-GAAP Financial Metrics
This document discusses several non-GAAP financial metrics framed by the SEC. These metrics provide additional information needed in assessments of our ongoing operational performance, providing us with a different perspective on our financial health. These measures are used in conjunction with the generally accepted accounting principles in the United States (GAAP) for internal management assessments and period-to-period comparisons. However, non-GAAP financial measures should not be applied solely to gauge our performance. Those projections are most informative in conjunction with results presented according to GAAP for a complete understanding of factors and trends affecting our business. We strongly recommend that in evaluating all our financial statements and publicly-filed reports, one should not rely only on any single non-GAAP financial measure.
What is Non-Standardization?
When using non-GAAP financial measures, it can be hard to compare with other companies. They are not the same, even if they have similar names. This makes comparing tricky.
Adjusted Net (Loss)/Income and Diluted Per-Share Variant
Adjusted net ( the corresponding, per share figures represent the net ( the basic/diluted net (loss)/income per share respectively after taking into account certain adjustments. These adjustments include gains/losses on FFAs and bunker swaps gains/losses on debt extinguishment and impairment of operating lease right-of-use assets. By making these adjustments we aim to provide an understanding of our performance. This allows for comparison of our results across periods and with other companies in our industry. However, it is important to note that these adjusted figures should not be considered as a substitute, for GAAP measures.
Understanding EBITDA and Adjusted EBITDA
EBITDA is the Net (loss)/income with adjustments for interest, income taxes, and depreciation/amortization based on GAAP. When we mention Adjusted EBITDA, we are talking about additional exclusions for certain non-cash items, one-time occurrences, and anything not reflecting the central operations such as vessel impairment and stock-based compensation. It assists in assessing operational performance, but it’s not an alternative to GAAP measures.
Decoding TCE Revenue and TCE
The terms TCE revenue and TCE are non-GAAP measures that we use to compare earnings from different vessels. We calculate TCE Revenue by adjusting revenues for voyage expenses and charter hire charges. By dividing TCE Revenue with the total number of owned available days, we get TCE. It aids in evaluating vessel deployment and performance. However, these are additional measures and not replacements for GAAP results.
Adjusted Vessel Operating Expenses and Adjusted DVOE
These metrics assist in evaluating our operational performance but should not replace GAAP measures. Comparability with other companies may vary.
Glossary of Terms
- Chartered-in days: Days when we charter in vessels.
- Owned available days: Days our owned vessels are available for revenue generation.
- Ownership days: Total days our fleet is owned by us.
Definitions of Capitalized Term
- Convertible Bond Debt: 5.0% Convertible Senior Notes due 2024.
- Global Ultraco Debt Facility: A senior secured credit facility secured by 52 vessels.
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Source: EAGLE BULK
