NEW YORK, May 7, 2007 (PRIME NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE), a global marine transportation company specializing in the Supramax segment of the dry bulk shipping industry, today announced its results for the first quarter of 2007.
First quarter 2007 highlights included:
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* Net Income of $8.5 million or $0.23 per share, including a
non-cash, non-dilutive, compensation charge of $3.2 million.
Excluding the non-cash charge, net income was $11.7 million or
$0.31 per share (based on a weighted average of 37,480,914 diluted
shares outstanding for the quarter).
* Declared a dividend of $0.50 per share, based on the first
quarter results, which was paid on May 3, 2007 to shareholders of
record as of April 30, 2007.
* Gross time charter revenues of $29.5 million.
* EBITDA, as adjusted for exceptional items under the terms of the
Company's credit agreement, of $21.8 million. Please see below for
a reconciliation of EBITDA to net income.
* Declared and paid a dividend of $0.51 per share, based on the
fourth quarter 2006 results, on March 2, 2007.
* Agreed to acquire three Supramax vessels for an aggregate of
$138.7 million.
* Sold the SHIKRA, the oldest and smallest vessel in the fleet, for
a gain of $0.9 million
* Expanded newbuild program for 56,000 deadweight Supramax vessels
to 4 vessels
-- Committed an additional $66.4 million for 2 vessels in the
quarter with expected delivery in 2008 and 2009.
Subsequent Events:
------------------
* Signed letter of intent for a fifth 56,000 deadweight Supramax
newbuilding vessel with a contract price of approximately $33.6
million, and expected delivery in early 2009.
* The lender under the Company's revolving credit facility agreed
to provide an incremental commitment under that facility of up to
$250 million, in addition to its existing $500 million commitment.
Sophocles Zoullas, Chairman and Chief Executive Officer, commented, "The strong performance of our fleet continues to generate significant free cash flow, allowing our shareholders to participate in the strength of the drybulk market through our dividends. With this quarter's declared dividend of $0.50 per share, we have now declared and paid aggregate dividends of $3.63 per share in just seven quarters of operations."
Mr. Zoullas continued, "We continue to take advantage of a robust dry bulk market to capture today's drybulk values for extended periods. We continue to operate with what we believe is one of the lowest cash break-even points in the dry bulk sector, and our capital structure positions us well to continue to make opportunistic investments to grow the business as we develop the Supramax franchise.
"Consistent with these growth objectives, we significantly strengthened our fleet during the quarter with the acquisition of three Japanese-built Supramax vessels. We further affirmed our commitment to operating young high-build quality assets by signing a letter of intent with IHI Marine United, Inc., a pre-eminent Japanese shipyard, for a fifth 56,000 deadweight Supramax vessel which is expected to be delivered in early 2009."
Results for the three months ended March 31, 2007 and 2006
All of the Company's revenues were earned from time charters. Gross revenues in the first quarter of 2007 increased 13% to $29,476,374 from $26,048,116 in the comparable quarter in 2006. This increase was attributable to an increase in number of vessels in the fleet. After deductions for brokerage commissions of $1,487,842 and $1,080,000 in amortization of net prepaid charter revenue, net revenues for the first quarter of 2007 was $26,908,532. Net revenues for the corresponding quarter in 2006 were $23,790,052 after deductions for brokerage commissions of $1,321,064 and $937,000 in amortization of net prepaid and deferred charter revenues.
EBITDA, as defined by the Company's credit agreement, for the quarter increased 12% to $21,769,767 from $19,368,120 in the comparable quarter in 2006. Please see below for a reconciliation of EBITDA to net income.
Exclusive of non-cash compensation charges, the Company's adjusted net income for the quarter increased to $11,747,011 from $11,545,187 in the comparable quarter in 2006. Adjusted EPS for the 2007 quarter was $0.31 based on a weighted average of 37,480,914 diluted shares outstanding compared to $0.35 based on 33,150,106 diluted shares outstanding in the comparable quarter in 2006. For the first quarter of 2007, the Company's reported net income was $8,487,788 compared to $10,792,501 in the comparable quarter in 2006.
Based on the first quarter results, the Company declared a dividend of $0.50 per share to its shareholders of record as of April 30, 2007 and this cash dividend aggregating $20,856,910 was paid on May 3, 2007.
INVESTING ACTIVITIES
In the first quarter of 2007, the Company agreed to purchase three modern Supramax vessels, the SHRIKE, SKUA and KITTIWAKE, for a total contract price of $138,700,000. The Company has placed $23,440,000 in deposits for the three vessels and the balance of the purchase prices will be paid upon each vessel's delivery. The SHRIKE delivered on April 24, 2007. The Company is expected to take delivery of the SKUA and the KITTIWAKE in June 2007.
During the quarter, the Company sold the SHIKRA, a 1984-built Handymax vessel to an unrelated third party, basis drydocking and surveys due, for $12,525,000. The Company recorded a gain on the sale of $872,568.
In the first quarter of 2007, the Company expanded its newbuilding program. It entered into two additional newbuilding contracts for the construction of 56,000 deadweight ton vessels, to be named CROWNED EAGLE and CRESTED EAGLE, which are expected to be delivered in November 2008 and February 2009, respectively. The contract price for each vessel is approximately $33,200,000 after giving effect to currency hedges. The Company has placed deposits for the two newbuilding vessels which amount to an equivalent $25,265,936. As of March 31, 2007, the Company had placed deposits aggregating an equivalent $50,064,054 for 4 newbuilding vessels on order. The deposits for the newbuilding vessels have been funded through borrowings from its credit facility and the borrowing costs are capitalized. As of March 31, 2007, the Company had capitalized interest costs of $768,631 and legal, insurance and technical supervision fees of $181,275.
At March 31, 2007, the Company's debt consisted of $265,624,561 in borrowings under the Company's $500,000,000 revolving credit facility. The Company's credit facility matures in July 2016 and there are no principal repayment obligations until July 2012.
Subsequent to the end of the first quarter, on April 12, 2007, the Company signed a letter of intent to enter into a vessel newbuilding contract with a Japanese shipyard for the construction of its fifth 'Future-56' class 56,000 deadweight ton Supramax vessel expected to be delivered in April 2009. The contract price is approximately $33.6 million after giving effect to currency hedges which the Company has entered into.
CAPITAL MARKET TRANSACTIONS
On January 9, 2007, the Company's former principal shareholder, Eagle Ventures, sold 7,202,679 of the Company's common shares in a secondary sale. The Company did not receive any proceeds from this offering.
On March 6, 2007, the Company sold 5,400,000 of its common shares at a price to the public of $18.95 per share raising gross proceeds of $102,330,000. On March 20, 2007, the Company raised an additional $7,841,870 in gross proceeds from the underwriter's exercise of their over-allotment option for the purchase of 413,819 of the Company's common shares. The Company incurred fees and expenses of $3,181,989 relating to the secondary sale and sale of common shares.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities during the three month periods ended March 31, 2007 and 2006 was $18,801,874 and $15,749,648, respectively. The increase was primarily due to cash generated from the operation of the fleet for 1,407 operating days in the three month period ended March 31, 2007 compared to 1,170 operating days during the same period in 2006.
Net cash used in investing activities during the first quarter of 2007 was $37,251,697.
Net cash provided by financing activities during the first quarter of 2007 was $115,169,544. Net cash used by financing activities during the comparable quarter in 2006 was $18,897,030.
At March 31, 2007, the Company's cash balance was $118,995,212 compared to a cash balance of $21,379,146 at March 31, 2006. In addition, as of March 31, 2007, Restricted Cash of $6,000,000 is maintained with its lender for loan compliance purposes. Also included in Restricted Cash is an amount of $124,616 which is collateralizing a letter of credit for the Company's office lease.
At March 31, 2007, the Company had a remaining undrawn capacity of $234,375,439 available to borrow for future acquisitions of dry bulk vessels under its $500,000,000 revolving credit facility. The facility also provides it with the ability to borrow up to $15,000,000 for working capital purposes.
DIVIDENDS
On February 15, 2007 the Company declared a cash dividend for the fourth quarter of 2006 of $0.51 per share, based on 35,900,001 of its common shares outstanding. The aggregate amount of this cash dividend paid to shareholders on March 2, 2007 was $18,309,000.
Since inception to March 31, 2006, the Company has paid cash dividends to its shareholders of $3.13 per share or an aggregate amount of $104,699,500.
On April 18, 2007 the Company declared a cash dividend for the first quarter of 2007 of $0.50 per share based on 41,713,820 of its common shares outstanding. The aggregate amount of this cash dividend paid to shareholders on May 3, 2007 was $20,856,910.
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 Company's revolving credit facility permits it to pay dividends in amounts up to its earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. Therefore, the Company believes that this non-GAAP measure is important for its investors as it reflects its ability to pay dividends. 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
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March 31, 2007 March 31, 2006
-------------- --------------
Net Income $ 8,487,788 $10,792,501
Interest Expense 3,152,125 2,066,351
Depreciation and Amortization 5,790,631 4,819,582
Amortization of Prepaid and
Deferred Revenue 1,080,000 937,000
----------------------------
EBITDA 18,510,544 18,615,434
Adjustments for Exceptional Items:
Non-cash Compensation Expense 3,259,223 752,686
----------------------------
Credit Agreement EBITDA $21,769,767 $19,368,120
============================
DRYDOCKINGS
In addition to acquisitions that the Company may undertake in future periods, other major capital expenditures include funding the Company's maintenance program of regularly scheduled drydocking necessary to preserve the quality of its vessels as well as to comply with international shipping standards and environmental laws and regulations. Vessels are drydocked generally every two and a half years and costs incurred are amortized to expense on a straight-line basis. Drydocking a vessel involves repositioning the vessel from a discharge port to shipyard facilities which reduces the revenue generating days by the drydocking period. At the end of the first quarter of 2007, one of the Company's vessels commenced a regularly scheduled drydocking. 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:
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Quarter Ending Off-hire Days(1) Projected Costs(2)
-------------- ---------------- ------------------
June 30, 2007 15 $0.4 million
September 30, 2007 30 $0.8 million
December 31, 2007 30 $0.8 million
March 31, 2008 15 $0.4 million
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(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.
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SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA:
The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.
Three Months ended
Consolidated Statement of Operations March 31,
------------------------------------ -----------------------------
(Unaudited) 2007 2006
------------ ------------
Revenues, net of commissions $ 26,908,532 $ 23,790,052
Vessel Expenses 6,245,898 4,704,997
Depreciation and Amortization 5,790,631 4,819,582
General and Administrative Expenses 1,643,820 985,479
Non-cash Compensation Expense 3,259,223 752,686
Gain on Sale of Vessel (872,568) --
------------ ------------
Total Operating Expenses 16,067,004 11,262,744
------------ ------------
Operating Income 10,841,528 12,527,308
Interest Expense 3,152,125 2,066,351
Interest Income (798,385) (331,544)
------------ ------------
Net Interest Expense 2,353,740 1,734,807
------------ ------------
Net Income $ 8,487,788 $ 10,792,501
============ ============
Weighted Average Shares Outstanding:
Basic 37,450,578 33,150,000
Diluted 37,480,914 33,150,106
Per Share Amounts:
Basic Net Income $ 0.23 $ 0.33
Diluted Net Income $ 0.23 $ 0.33
Cash dividends declared and paid $ 0.51 $ 0.57
Fleet Operating Days
--------------------
Ownership Days 1,407 1,170
Available Days 1,395 1,126
Operating Days 1,387 1,116
Fleet Utilization 99.4% 99.1%
BALANCE SHEETS March 31, December 31,
-------------- 2007 2006
------------ ------------
ASSETS: (Unaudited)
Current Assets:
Cash $118,995,212 $ 22,275,491
Accounts Receivable 852,690 616,205
Prepaid Charter Revenue 2,660,000 3,740,000
Prepaid Expenses 1,018,155 1,020,821
------------ ------------
Total Current Assets 123,526,057 27,652,517
Advances for Vessel Acquisition 23,475,897 --
Vessels and Vessel Improvements, net 485,487,389 502,141,951
Advances for Vessel Construction 51,013,960 25,190,941
Restricted Cash 6,124,616 6,524,616
Deferred Drydock Costs, net of
Accumulated Amortization of $1,084,092 at
March 31, 2007, and $809,109 at December
31, 2006 1,662,316 1,937,299
Deferred Financing Costs, net of
Accumulated Amortization of $334,323 at
March 31, 2007 and $276,311 at December
31, 2006 2,313,090 2,406,839
Other Assets 1,763,161 2,936,804
------------ ------------
Total Assets $695,366,486 $568,790,967
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 2,585,423 $ 1,650,159
Accrued Interest 882,475 800,683
Other Accrued Liabilities 1,911,760 1,717,124
Unearned Charter Hire Revenue 3,172,897 2,713,060
------------ ------------
Total Current Liabilities 8,552,555 6,881,026
Long-term Debt 265,624,561 239,974,820
Other Liabilities 45,411 359,180
------------ ------------
Total Liabilities 274,222,527 247,215,026
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, 41,713,820 shares
issued and outstanding as of March 31,
2007 and 35,900,001 shares issued and
outstanding as of December 31, 2006,
respectively 417,138 359,000
Additional Paid-In Capital 474,765,843 364,574,877
Retained Earnings (net of cumulative
dividends declared of $104,699,500 at
March 31, 2007 and $86,390,500 at
December 31, 2006) (55,756,772) (45,935,560)
Accumulated Other Comprehensive Income 1,717,750 2,577,624
------------ ------------
Total Stockholders' Equity 421,143,959 321,575,941
------------ ------------
Total Liabilities and
Stockholders' Equity $695,366,486 $568,790,967
============ ============
Three Months ended
CONSOLIDATED STATEMENT OF CASH FLOWS March 31,
------------------------------------ ---------------------------
(UNAUDITED) 2007 2006
------------ ------------
Cash Flows from Operating Activities
Net Income $ 8,487,788 $ 10,792,501
Adjustments to Reconcile Net Income
to Net Cash provided by Operating
Activities:
Items included in net income not
affecting cash flows:
Depreciation 5,515,648 4,697,471
Amortization of Deferred Drydocking Costs 274,983 122,111
Amortization of Deferred Financing Costs 58,012 32,950
Amortization of Prepaid and Deferred
Charter Revenue 1,080,000 937,000
Non-cash Compensation Expense 3,259,223 752,686
Gain on Sale of Vessel (872,568) --
Changes in Operating Assets
and Liabilities:
Accounts Receivable (236,485) (51,145)
Prepaid Expenses 2,666 (1,269,690)
Accounts Payable 496,342 1,412,309
Accrued Interest 81,792 7,275
Accrued Expenses 194,636 (41,327)
Drydocking Expenditures -- (1,464,473)
Unearned Charter Hire Revenue 459,837 (178,020)
------------ ------------
Net Cash Provided by Operating Activities 18,801,874 15,749,648
Cash Flows from Investing Activities
Advances for Vessel Acquisition (23,475,897) --
Advances for Vessel Construction (25,787,282) --
Proceeds from Sale of Vessel 12,011,482 --
------------ ------------
Net Cash Used in Investing Activities (37,251,697) --
Cash Flows from Financing Activities
Issuance of Common Stock 110,171,870 --
Equity Issuance Costs (2,743,067) --
Bank Borrowings 38,089,741 --
Repayment of Bank Debt (12,440,000) --
Decrease/(Increase) in Restricted Cash 400,000 --
Deferred Financing Costs -- (1,530)
Cash Dividends (18,309,000) (18,895,500)
------------ ------------
Net Cash Provided by Financing Activities 115,169,544 (18,897,030)
Net (Decrease)/Increase in Cash 96,719,721 (3,147,382)
Cash at Beginning of Period 22,275,491 24,526,528
------------ ------------
Cash at End of Period $118,995,212 $ 21,379,146
============ ============
Supplemental Cash Flow Information:
Cash paid during the period for Interest
(including Capitalized interest of
$375,845 in 2007 and Commitment Fees) $ 3,485,585 $ 2,025,940
THE FLEET
At March 31, 2007, the Company owned and operated a fleet of 15 vessels. In addition, it has committed to acquire 3 more Supramax vessels which will be delivered to in the second quarter of 2007, and it has entered into contracts to construct four newbuilding vessels which are scheduled to be delivered from November 2008 through February 2010. With these acquisitions, the Company's total operating and newbuild fleet consists of 22 vessels. The combined carrying capacity of the 18 vessel on-the-water fleet is 915,399 deadweight tons with an average age of under 6 years. All of the Company's vessels are employed on time charters. The following table represents certain information about the Company's revenue earning charters, as of March 31, 2007, and charters for vessels committed for delivery:
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Time Daily Time
Year Charter Employment Charter
Vessel Built Dwt Expiration (1) Hire Rate
------ ----- ------ ----------------- ----------
SUPRAMAX:
Cardinal (2) 2004 55,408 March 2007
to June 2007 $26,500
Condor (3) 2001 50,296 May 2009
to August 2009 $20,500
Falcon 2001 50,296 February 2008
to June 2008 $20,950
Harrier (4) 2001 50,296 March 2007
to June 2007 $23,750
Hawk I (5) 2001 50,296 April 2007
to March 2009 $23,750
Heron (6) 2001 52,827 December 2007
to February 2008 $24,000
Jaeger (7) 2004 52,248 April 2007
to June 2007 $18,550
Kestrel I (8) 2004 50,326 December 2007
to April 2008 $18,550
Merlin (9) 2001 50,296 October 2007
to December 2007 $24,000
Osprey I (10) 2002 50,206 July 2008
to November 2008 $21,000
Peregrine 2001 50,913 December 2008
to February 2009 $20,500
Tern (11) 2003 50,200 December 2007
to April 2008 $19,000
NEW SUPRAMAX
ACQUISITIONS
Shrike (12) 2003 53,343 April 2009
to June 2009 $24,600
Skua (13) 2003 53,350 May 2009
to July 2009 $24,200
Kittiwake (14) 2002 53,146 May 2008
to July 2008 $30,400
HANDYMAX:
Sparrow (15) 2000 48,225 November 2006
to February 2007 $22,500
Kite (16) 1997 47,195 March 2007
to May 2007 $14,750
Griffon (17) 1995 46,635 March 2009
to May 2009 $20,075
NEWBUILDINGS
Crowned Eagle 2008 56,000 Expected to be
delivered in
November 2008 --
Crested Eagle 2009 56,000 Expected to be
delivered in
April 2009 --
Golden Eagle 2010 56,000 Expected to be
delivered in
January 2010 --
Imperial Eagle 2010 56,000 Expected to be
delivered in
February 2010 --
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(1) The date range provided represents the earliest and latest
date on which the charterer may redeliver the vessel to the
Company upon the termination of the charter.
(2) Upon completion of the current charter the CARDINAL will enter
a new time charter at $28,000 per day for 11 to 13 months.
(3) The charterer of the CONDOR has an option to extend the
charter period by 11 to 13 months at a time charter rate of
$22,000 per day.
(4) The charter for the HARRIER has been renewed at $24,000 per
day commencing in June 2007 for 24 to 27 months.
(5) The charter for the HAWK I has been renewed at $22,000 per day
commencing in April 2007 for 24 to 26 months.
(6) Upon completion of the current charter, the HERON commences a
new time charter with a rate of $26,375 per day for 36 to 39
months.
(7) Upon completion of the current charter, the JAEGER commences a
new time charter with a rate of $27,500 per day for 12 to 14
months. The charter rate may reset at the beginning of each month
based on the average time charter rate for the Baltic Supramax
Index, but in no case less than $22,500 per day.
(8) The charterer of the KESTREL I has an option to extend the
charter period by 11 to 13 months at a daily time charter rate of
$20,000 per day.
(9) Upon completion of the current charter, the MERLIN commences a
new time charter for 36 to 39 months. The charter rate is $27,000
per day for first year, $25,000 per day for the second year, and
$23,000 for the third year. For purposes of revenue recognition,
the charter is reflected on a straight-line basis at $25,000 per
day for 36 to 39 months in accordance with generally accepted
accounting principles in the United States.
(10) The charterer of the OSPREY I has an option to extend the
charter period by up to 26 months at a time charter rate of
$25,000 per day.
(11) The charterer of the TERN has an option to extend the charter
period by 11 to 13 months at a time charter rate of $20,500 per
day.
(12) The Company took delivery of the SHRIKE on April 24, 2007 and
the vessel was immediately delivered to the charterer at time
charter rate of $24,600 per day for 24 to 26 months. The
charterer has an option to extend the charter period by 12 to 14
months at a daily time charter rate of $25,600.
(13) The Company is expected to take delivery of the SKUA in June
2007 and the vessel will deliver to the charterer at time charter
rate of $24,200 per day for 23 to 25 months. The charterer has an
option to extend the charter period by 11 to 13 months at a daily
time charter rate of $25,200.
(14) The Company is expected to take delivery of the KITTIWAKE in
June 2007 and the vessel will deliver to the charterer at time
charter rate of $30,400 per day for 11 to 13 months. The charter
rate may reset at the beginning of each month based on the
average time charter rate for the Baltic Supramax Index, but in
no case less than $24,400 per day.
(15) Upon completion of the current charter in January 2007, the
SPARROW commenced a new time charter at a base rate of $24,000
per day for 11 to 13 months with a profit share of 30% of up to
the first $3,000 per day over the base rate.
(16) Upon conclusion of the current charter, the KITE commences a
new time charter at $21,000 per day for 26 to 29 months.
(17) Upon completion of the current charter in March 2007, the
GRIFFON commenced a new time charter at $20,075 per day for 24 to
26 months.
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.
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 and Webcast 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 Tuesday, May 8, 2007, to discuss the results.
To participate in the teleconference, investors and analysts are invited to call 866-356-3095 in the U.S., or 617-597-5391 outside of the U.S., and reference participant code 44501179. A simultaneous webcast may be accessed by visiting the Company's website at: www.eagleships.com
IMPORTANT: Investors participating in the teleconference are encouraged to access an accompanying slide presentation, which management will reference during the call. This presentation will be available at www.eagleships.com. A telephonic replay will be available following the call until 12:00 a.m. ET on May 15th, 2007. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 48096061.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is the largest U.S. based owner of Handymax dry bulk vessels. Handymax vessels range in size from 35,000 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