NEW YORK, Nov. 4, 2009 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the third quarter of 2009.
Third quarter 2009 highlights included:
* Net Income, as adjusted for one-time, non-cash charge relating
to the amendment to the Company's credit facility, of
$3.9 million or $0.06 per share (based on a weighted average of
62.0 million shares). Net Income for the quarter without this
adjustment was $0.5 million or $0.01 per share.
* Net Revenues were $41.6 million;
* EBITDA, as adjusted for exceptional items under the terms of the
Company's credit agreement, was $25.0 million;
* Fleet utilization rate for the third quarter was 99.7%.
* Four vessels in the fleet were chartered on rates that are tied
to the Baltic Supramax Index ("BSI")
Subsequent to the close of the third quarter, Eagle Bulk successfully took delivery of the Bittern, a 58,000 dwt Supramax dry bulk vessel. The vessel immediately entered service into a previously contracted ten year time charter. The charter rate through December 2014 is $18,850 per day; thereafter the contract converts to a profit-sharing charter with a base rate of $18,000 per day. In aggregate, the Bittern is expected to contribute approximately $62 million in minimum contracted revenue.
Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "Eagle Bulk's third quarter performance highlights steady cash flow and continued solid operating performance, with a utilization rate of 99.7%. During the quarter, we opportunistically sought to balance our fixed-rate charters with four index-based charters that are performing well. Looking forward, charter coverage of 63% for 2010 will ensure revenue stability with upside potential, while newbuild deliveries increase EBITDA."
Mr. Zoullas continued, "Our fleet expanded with the delivery of the Bittern, a Supramax newbuilding, which commenced a long-term time charter. By the end of the first quarter 2010, Eagle Bulk's fleet expansion will accelerate as the Company takes delivery of seven vessels. Of these, two are open and five have charters in place, representing minimum contracted revenues of $259 million."
Results of Operations for the three month period ended September 30, 2009
For the third quarter of 2009, the Company reported net income of $512,261 or $0.01 per share, based on a weighted average of 61,986,752 diluted shares outstanding. In the comparable third quarter of 2008, the Company reported net income of $23,221,617 or $0.49 per share, based on a weighted average of 47,066,254 diluted shares outstanding. Net income declined due to lower charter rates on some of the Company's vessels.
All of the Company's revenues were earned from time charters. Gross time charter revenues in the quarter ended September 30, 2009 were $43,688,025 compared to $54,169,749 recorded in the comparable quarter in 2008. Gross revenues declined due to prevailing market conditions. Vessels with legacy time charters saw lower rates upon charter renewals. Third party brokerage commissions incurred on those gross revenues were $2,136,220 and $2,616,517, respectively. Net revenues during the quarter ended September 30, 2009, were $41,551,805 compared to $51,553,232 in the quarter ended September 30, 2008.
Total operating expenses were $30,428,069 in the quarter ended September 30, 2009 compared to $25,002,973 recorded in the third quarter of 2008. The increase was due to operation of a larger fleet, increases in vessel crew and insurance costs, general and administrative expenses, and vessel depreciation and dry-dock amortization expenses.
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased by 36% to $24,984,274 for the third quarter of 2009, from $38,858,408 for the third quarter of 2008. (Please see below for a reconciliation of EBITDA to net income).
Results of Operations for the nine month period ended September 30, 2009
For the nine months ended September 30, 2009, the Company reported net income of $31,096,577 or $0.58 per share, based on a weighted average of 53,831,913 diluted shares outstanding. In the comparable period of 2008, the Company reported net income of $52,473,557 or $1.11 per share, based on a weighted average of 47,062,811 diluted shares outstanding.
All of the Company's revenues were earned from time charters. Gross time charter revenues for the nine month period ended September 30, 2009 were $158,243,472, an increase of 20% from $131,951,183 recorded in the comparable period in 2008, primarily due to the operation of a larger fleet. Brokerage commissions incurred on those gross revenues were $7,692,663 and $6,488,735, respectively. Net revenues during the nine-month period ended September 30, 2009, increased 20% to $150,550,809 from $125,462,448 in the comparable period in 2008.
Total operating expenses were $95,611,450 in the nine month period ended September 30, 2009 compared to $65,129,826 recorded in the same period of 2008. The increase was due to operation of a larger fleet, increases in vessel crew and insurance costs, general and administrative expenses, and vessel depreciation expenses.
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, was $96,049,461 for the nine months ended September 30, 2009, compared to $94,208,782 for the same period in 2008. (Please see below for a reconciliation of EBITDA to net income).
Liquidity and Capital Resources
Net cash provided by operating activities during the nine month periods ended September 30, 2009 and 2008, was $80,594,642 and $81,593,271, respectively, primarily related to operation of a larger fleet and higher rates on legacy time charters, net of lower rates on charter renewals.
Net cash used in investing activities during the nine month period ended September 30, 2009, was $145,857,288, compared to $273,887,573 during the corresponding nine month period ended September 30, 2008. Investing activities primarily related to progress payments and related construction expenses for the newbuilding vessels.
Net cash provided by financing activities during the nine month period ended September 30, 2009, was $138,598,251, compared to net cash provided by financing activities of $72,374,980 during the corresponding period in 2008. Financing activities during the nine month period ended September 30, 2009 included receipt of $97,291,046 in net proceeds from the distribution of common shares of the Company, gross borrowings of $95,770,000 from the revolving credit facility, and loan repayments of $48,645,523 to lenders under the terms of the amended debt agreement which went into effect during third quarter.
As of September 30, 2009, the Company's cash balance was $82,544,467, compared to a cash balance of $9,208,862 at December 31, 2008. In addition, $12,500,000 in cash deposits are maintained with the Company's lender for loan compliance purposes and this amount is recorded in Restricted Cash in the financial statements as of September 30, 2009.
At September 30, 2009, the Company had outstanding debt of $836,725,880 which was borrowed under its revolving credit facility. These borrowings consisted of $416,233,690 for the 25 vessels in operation as of September 30, 2009, and $420,492,190 in progress payments and advances to fund the Company's 22 vessel newbuilding construction program. In August 2009, the Company successfully amended its revolving credit facility on terms that will provide the Company with enhanced financial flexibility. The non-amortizing revolving credit facility has been amended from $1.35 billion to $1.2 billion with maturity in July 2014, and the Company will use half the net proceeds from any equity issuance to repay debt and reduce the facility. The Company will continue to draw on the facility to fund its newbuilding commitments, and this agreement further supports the funding for the remainder of its newbuilding program. In connection with this amendment the Company recorded a one-time non-cash charge of $3,383,289 relating to the write-off of a portion of deferred finance costs associated with the reduction of the credit facility.
Disclosure of Non-GAAP Financial Measures
EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. The following table is a reconciliation of net income, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA:
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Three Months Ended Nine Months Ended
---------------------------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
---------------------------------------------------------------------
Net Income $512,261 $23,221,617 $31,096,577 $52,473,557
---------------------------------------------------------------------
Interest Expense 7,294,151 3,714,458 20,596,321 10,513,928
---------------------------------------------------------------------
Depreciation and
Amortization 11,094,238 8,991,877 32,328,402 23,718,898
---------------------------------------------------------------------
Amortization of
fair value below
contract value of
time charters
acquired (645,098) (264,053) (1,942,278) (264,053)
---------------------------------------------------------------------
EBITDA 18,255,552 35,663,899 82,079,022 86,442,330
---------------------------------------------------------------------
Adjustments for
Exceptional Items:
---------------------------------------------------------------------
Write-off of
Financing Fees 3,383,289 -- 3,383,289 --
---------------------------------------------------------------------
Non-cash
Compensation
Expense 3,345,433 3,194,509 10,587,150 7,766,452
---------------------------------------------------------------------
Credit Agreement
EBITDA $24,984,274 $38,858,408 $96,049,461 $94,208,782
-------------------==================================================
Summary Consolidated Financial and Other Data:
The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.
CONSOLIDATED STATEMENTS OF OPERATIONS:
--------------------------------------------------
Three Months Ended Nine Months Ended
--------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
--------- --------- --------- ---------
2009 2008 2009 2008
---- ---- ---- ----
Revenues, net of
Commissions $41,551,805 $51,553,232 $150,550,809 $125,462,448
Vessel Expenses 11,493,889 9,344,348 37,498,893 24,932,088
Depreciation and
Amortization 11,094,238 8,991,877 32,328,402 23,718,898
General and
Administrative
Expenses 7,839,942 6,666,748 25,784,155 16,478,840
------------------------ ------------------------
Total Operating
Expenses 30,428,069 25,002,973 95,611,450 65,129,826
------------------------ ------------------------
Operating Income 11,123,736 26,550,259 54,939,359 60,332,622
Interest Expense 7,294,151 3,714,458 20,596,321 10,513,928
Interest Income (65,965) (385,816) (136,828) (2,654,863)
Write-off of
Deferred Financing
Costs 3,383,289 -- 3,383,289 --
------------------------ ------------------------
Net Interest
Expense 10,611,475 3,328,642 23,842,782 7,859,065
------------------------ ------------------------
Net Income $512,261 $23,221,617 $31,096,577 $52,473,557
=========== =========== =========== ===========
Weighted Average
Shares
Outstanding :
Basic 61,976,794 46,770,486 53,808,348 46,762,092
Diluted 61,986,752 47,066,254 53,831,913 47,062,811
Per Share Amounts:
Basic Net Income $0.01 $ 0.50 $0.58 $ 1.12
Diluted Net Income $0.01 $ 0.49 $0.58 $ 1.11
Cash Dividends
Declared and Paid -- $ 0.50 -- $ 1.50
Fleet Operating
Data
----
Number of Vessels
in Operating fleet 25 21 25 21
Fleet Ownership
Days 2,300 1,866 6,713 5,160
Fleet Available
Days 2,271 1,862 6,657 5,117
Fleet Operating
Days 2,264 1,845 6,634 5,094
Fleet Utilization
Days 99.7% 99.1% 99.7% 99.6%
CONSOLIDATED BALANCE SHEETS:
September 30, December 31,
2009 2008
-------------- --------------
ASSETS: (Unaudited)
Current assets:
Cash and cash equivalents $ 82,544,467 $ 9,208,862
Accounts receivable 5,825,416 4,357,837
Prepaid expenses 5,348,972 3,297,801
-------------- --------------
Total current assets 93,718,855 16,864,500
-------------- --------------
Noncurrent assets:
Vessels and vessel improvements, at
cost, net of accumulated depreciation
of $114,516,274 and $84,113,047,
respectively 919,565,338 874,674,636
Advances for vessel construction 483,414,622 411,063,011
Other fixed assets, net of accumulated
amortization of $25,755 and $4,556,
respectively 283,895 219,245
Restricted cash 12,776,056 11,776,056
Deferred drydock costs 4,805,679 3,737,386
Deferred financing costs 22,012,037 24,270,060
Fair value above contract value of
time charters acquired 4,531,115 4,531,115
Fair value of derivative instruments 5,984,686 15,039,535
-------------- --------------
Total noncurrent assets 1,453,373,428 1,345,311,044
-------------- --------------
Total assets $1,547,092,283 $1,362,175,544
============== ==============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,402,289 $ 2,037,060
Accrued interest 7,717,705 7,523,057
Other accrued liabilities 10,473,346 3,021,975
Deferred revenue and fair value below
contract value of time charters
acquired 8,570,051 2,863,184
Unearned charter hire revenue 5,754,126 5,958,833
-------------- --------------
Total current liabilities 33,917,517 21,404,109
-------------- --------------
Noncurrent liabilities:
Long-term debt 836,725,880 789,601,403
Fair value below contract value of
time charters acquired 25,050,597 29,205,196
Fair value of derivative instruments 41,365,655 50,538,060
-------------- --------------
Total noncurrent liabilities 903,142,132 869,344,659
-------------- --------------
Total liabilities 937,059,649 890,748,768
-------------- --------------
Commitment and contingencies
Stockholders' equity:
Preferred stock, $.01 par value,
25,000,000 shares authorized, none
issued -- --
Common shares, $.01 par value,
100,000,000 shares authorized,
61,986,777 and 47,031,300 shares
issued and outstanding 619,868 470,313
Additional paid-in capital 721,483,816 614,241,646
Retained earnings (net of dividends
declared of $262,188,388) (76,690,081) (107,786,658)
Accumulated other comprehensive loss (35,380,969) (35,498,525)
-------------- --------------
Total stockholders' equity 610,032,634 471,426,776
-------------- --------------
Total liabilities and
stockholders' equity $1,547,092,283 $1,362,175,544
============== ==============
CONSOLIDATED STATEMENTS OF CASH FLOWS:
Nine Months Ended
September 30, September 30,
-------------- --------------
2009 2008
---- ----
Cash flows from operating activities:
Net income $ 31,096,577 $ 52,473,557
Adjustments to reconcile net income to
net cash provided by operating
activities: Items included in net
income not affecting cash flows:
Depreciation and amortization 30,424,426 21,816,618
Amortization of deferred drydocking
costs 1,903,976 1,902,280
Amortization of deferred financing
costs 881,728 185,508
Amortization of fair value below
contract value of time charter
acquired (1,942,278) (264,053)
Write-off of Deferred Financing Costs 3,383,289 --
Non-cash compensation expense 10,587,150 7,766,452
Changes in operating assets and
liabilities:
Accounts receivable (1,467,579) (489,213)
Prepaid expenses (2,051,171) (2,409,563)
Accounts payable (634,771) (3,288,849)
Accrued interest 644,354 573,342
Accrued expenses 7,025,387 1,056,589
Drydocking expenditures (2,546,285) (1,701,042)
Deferred revenue 3,494,546 --
Unearned charter hire revenue (204,707) 3,971,645
-------------- --------------
Net cash provided by operating
activities 80,594,642 81,593,271
Cash flows from investing activities:
Vessels and vessel improvements and
advances for vessel construction (145,771,439) (273,766,850)
Purchase of other assets (85,849) (120,723)
-------------- --------------
Net cash used in investing activities (145,857,288) (273,887,573)
Cash flows from financing activities:
Issuance of Common Stock 99,999,997 --
Proceeds from exercise of stock options -- 237,327
Equity issuance costs (2,708,951) --
Bank borrowings 95,770,000 144,724,967
Repayment of bank debt (48,645,523) --
Changes in restricted cash (1,000,000) (1,651,440)
Deferred financing costs (4,330,801) (786,811)
Cash used to settle net share equity
awards (486,471) --
Cash dividends -- (70,149,063)
-------------- --------------
Net cash provided by financing
activities 138,598,251 72,374,980
Net increase/(decrease) in cash 73,335,605 (119,919,322)
Cash at beginning of period 9,208,862 152,903,692
-------------- --------------
Cash at end of period $ 82,544,467 $ 32,984,370
============== ==============
Commercial and strategic management of the Company's fleet is carried out by a wholly-owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Marshall Islands limited liability company with offices in New York City. The technical management of the fleet is provided by unaffiliated third party technical managers. In the third quarter of 2009, the Company set up its own in-house vessel management company, in order to establish a vessel management bench-mark with its external technical managers.
The following table represents certain information about the Company's revenue earning charters on its operating fleet as of September 30, 2009:
----------------------------------------------------------------------
Daily Time
Year Charter Hire
Vessel Built Dwt Time Charter Expiration (1) Rate
------ ---- --- --------------------------- -------------
Cardinal
(2) 2004 55,362 September 2010 to November 2010 $16,250
Condor 2001 50,296 May 2010 to July 2010 $22,000
Falcon 2001 51,268 April 2010 to June 2010 $39,500
Griffon 1995 46,635 February 2010 to May 2010 $9,500
Harrier 2001 50,296 April 2010 to June 2010 $13,500
Hawk I 2001 50,296 May 2010 to August 2010 $13,000
Heron (3) 2001 52,827 January 2011 to May 2011 $26,375
Jaeger
(4) 2004 52,248 October 2009 to January 2010 $10,100
Kestrel I 2004 50,326 March 2010 to July 2010 $11,500
Kite (5) 1997 47,195 September 2009 to January 2010 $9,500
Merlin
(6) 2001 50,296 December 2010 to March 2011 $25,000
Osprey I 2002 50,206 October 2009 to December 2009 $25,000
Peregrine $8,500
(7) 2001 50,913 January 2010 $10,500 (with
Jan 2010 to Jan 2011/Mar 2011 Index share)
Sparrow
(8) 2000 48,225 February 2010 to May 2010 $10,000
Tern 2003 50,200 December 2009 to March 2010 $8,500
Shrike 2003 53,343 May 2010 to August 2010 $25,600
Skua (9) 2003 53,350 September 2010 to November 2010 Index
Kittiwake
(10) 2002 53,146 June 2010 to September 2010 Index
Goldeneye
(11) 2002 52,421 May 2010 to July 2010 Index
$24,750
Wren (12) 2008 53,349 February 2012 $18,000 (with
Feb 2012 to Dec 2018/Apr 2019 profit share)
Redwing
(13) 2007 53,411 August 2010 to October 2010 Index
Woodstar 2008 53,390 January 2014 $18,300
(14) Jan 2014 to Dec 2018/Apr 2019 $18,000 (with
profit share)
Crowned
Eagle 2008 55,940 September 2009 to December 2009 $16,000
Crested
Eagle
(15) 2009 55,989 December 2009 to March 2010 $10,500
Stellar
Eagle 2009 55,989 February 2010 to May 2010 $12,000
----------------------------------------------------------------------
(1) The date range provided represents the earliest and latest date
on which the charterer may redeliver the vessel to the Company
upon the termination of the charter. The time charter hire rates
presented are gross daily charter rates before brokerage
commissions, ranging from 1.25% to 6.25%, to third party ship
brokers.
(2) Upon conclusion of the previous charter in September 2009, the
CARDINAL commenced a new one year charter at $16,250 per day.
(3) The charterer of the HERON has an option to extend the charter
period by 11 to 13 months at a time charter rate of $27,375 per
day. The charterer has a second option for a further 11 to 13
months at a time charter rate of $28,375 per day.
(4) In December 2008, the JAEGER commenced a charter for one year at
an average daily rate of approximately $10,100 based on a
charter rate of $5,000 per day for the first 50 days and $11,000
per day for the balance of the year. Revenue recognition is
based on an average daily rate of $10,100.
(5) In March 2009, the charterer of the KITE paid in advance for the
duration of the charter an amount equal to the difference
between the prevailing daily charter rate of $21,000 and a new
rate of $9,500 per day. This amount has been recorded in
Deferred Revenue in the Company's financial statements and is
has being recognized into revenue ratably until September 2009.
(6) The daily rate for the MERLIN is $27,000 for the first year,
$25,000 for the second year and $23,000 for the third year.
Revenue recognition is based on an average daily rate of
$25,000.
(7) The charterer of the PEREGRINE has exercised the option to
extend the charter period by 11 to 13 months. The rate for the
option period is index based with a minimum daily time charter
rate of $10,500 and a profit share which is equal to 50% of the
difference between the base rate and the average of the trailing
Baltic Supramax Index for each 30 day hire period.
(8) In March 2009, the charterer of the SPARROW paid in advance for
the duration of the charter an amount equal to the difference
between the prevailing daily charter rate of $34,500 and a new
rate of $10,000 per day. This amount has been recorded in
Deferred Revenue in the Company's financial statements and is
being recognized into revenue ratably over the charter period
such that the daily charter rate remains effectively $34,500 per
day. The cash payment received by the Company has been adjusted
by a present value interest rate factor of 3%.
(9) Upon conclusion of the previous time charter in August 2009, the
SKUA commenced an index based one year charter with a minimum
rate of $8,500 per day. The index rate will be an average of the
trailing Baltic Supramax Index for each 15 day hire period. For
the first 45 days of the charter the index rate will be a
maximum of $19,000 per day.
(10) Upon conclusion of the previous time charter, in July 2009, the
KITTIWAKE performed a short term charter at $18,000 per day and
then entered into another short term time charter at $25,000 per
day. Subsequently, in October 2009, the KITTIWAKE will enter
into an index based charter for one year with a minimum rate of
$8,500 per day. The index rate will be an average of the
trailing Baltic Supramax Index for each 15 day hire period. For
the first 45 days of the charter the index rate will be a
maximum of $19,000 per day.
(11) Upon conclusion of the previous time charter, in September 2009,
the GOLDENEYE commenced an index based one year charter with a
minimum rate of $8,500 per day. The index rate will be an
average of the trailing Baltic Supramax Index for each 15 day
hire period. For the first 50 days of the charter the index rate
is $15,000 per day.
(12) The WREN has entered into a long-term charter. The charter rate
until February 2012 is $24,750 per day. Subsequently, the
charter until redelivery in December 2018 to April 2019 will be
profit share based. The base charter rate will be $18,000 with a
50% profit share for earned rates over $22,000 per day. Revenue
recognition for the base rate from commencement of the charter
is based on an average daily base rate of $20,306.
(13) Upon conclusion of the previous time charter in August 2009, the
REDWING commenced an index based one year charter with a minimum
rate of $8,500 per day. The index rate will be an average of the
trailing Baltic Supramax Index for each 15 day hire period. For
the first 45 days of the charter the index rate will be a
maximum of $19,000 per day.
(14) The WOODSTAR has entered into a long-term charter. The charter
rate until January 2014 is $18,300 per day. Subsequently, the
charter until redelivery in December 2018 to April 2019 will be
profit share based. The base charter rate will be $18,000 with a
50% profit share for earned rates over $22,000 per day. Revenue
recognition for the base rate from commencement of the charter
is based on an average daily base rate of $18,152.
(15) The charterer of the CRESTED EAGLE has an option to extend the
charter period by 11 to 13 months at a base time charter rate of
$11,500 plus 50% of the difference between the base rate and the
BSI time charter average (provided the BSI TC average is greater
than the base rate). The profit share to be calculated each
month is based on the trailing BSI TC average for the month.
The following table, as of September 30, 2009, represents certain information about the Company's newbuilding vessels being constructed and their employment upon delivery:
----------------------------------------------------------------------
Year Time Charter Daily
-------- ----------------- -------
Vessel Dwt Built - Employment Time Profit Share
--------- ------ -------- ----------------- ------- ------------
Expected Expiration (2) Charter
-------- ----------------- -------
Delivery Hire
-------- -------
(1) Rate (3)
-------- -------
Bittern 58,000 Oct 2009 Dec 2014 $18,850 --
(4) Dec 2014 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Canary 58,000 2009Q4 Jan 2015 $18,850 --
Jan 2015 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Thrasher 53,100 2009Q4 Feb 2016 $18,400 --
Feb 2016 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Crane 58,000 2010Q1 Feb 2015 $18,850 --
Feb 2015 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Avocet 53,100 2010Q1 Mar 2016 $18,400 --
Mar 2016 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Egret 58,000 2010Q1 Sep 2012 to 50% over
(5) Jan 2013 $17,650 $20,000
Golden
Eagle 56,000 2010Q1 Charter Free -- --
Imperial
Eagle 56,000 2010Q1 Charter Free -- --
Gannet 58,000 2010Q2 Oct 2012 to 50% over
(5) Feb 2013 $17,650 $20,000
Grebe(5) 58,000 2010Q2 Nov 2012 to 50% over
Mar 2013 $17,650 $20,000
Ibis (5) 58,000 2010Q2 Dec 2012 to 50% over
Apr 2013 $17,650 $20,000
Jay 58,000 2010Q2 Sep 2015 $18,500 50% over
$21,500
Sep 2015 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Kingfisher 58,000 2010Q3 Oct 2015 $18,500 50% over
$21,500
Oct 2015 to 50% over
Dec 2018/Apr 2019 $18,000 $22,000
Martin 58,000 2010Q3 Dec 2016 to
Dec 2017 $18,400 --
Thrush 53,100 2010Q4 Charter Free -- --
Nighthawk 58,000 2011Q1 Sep 2017 to
Sep 2018 $18,400 --
Oriole 58,000 2011Q3 Jan 2018 to
Jan 2019 $18,400 --
Owl 58,000 2011Q3 Feb 2018 to
Feb 2019 $18,400 --
Petrel 58,000 2011Q4 Jun 2014 to 50% over
(5) Oct 2014 $17,650 $20,000
Puffin 58,000 2011Q4 Jul 2014 to 50% over
(5) Nov 2014 $17,650 $20,000
Road
-runner 58,000 2011Q4 Aug 2014 to 50% over
(5) Dec 2014 $17,650 $20,000
Sandpiper 58,000 2011Q4 Sep 2014 to 50% over
(5) Jan 2015 $17,650 $20,000
CONVERTED
INTO
OPTIONS
-------
Snipe (7) 58,000 2012Q1 Charter Free -- --
Swift (7) 58,000 2012Q1 Charter Free -- --
Raptor
(7) 58,000 2012Q2 Charter Free -- --
Saker (7) 58,000 2012Q2 Charter Free -- --
Besra
(6,7) 58,000 2011Q4 Charter Free -- --
Cernicalo
(6,7) 58,000 2011Q1 Charter Free -- --
Fulmar
(6,7) 58,000 2011Q3 Charter Free -- --
Goshawk
(6,7) 58,000 2011Q4 Charter Free -- --
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(1) Vessel build and delivery dates are estimates based on guidance
received from shipyard.
(2) The date range represents the earliest and latest date on which
the charterer may redeliver the vessel to the Company upon the
termination of the charter.
(3) The time charter hire rate presented are gross daily charter
rates before brokerage commissions ranging from 1.25% to 6.25% to
third party ship brokers.
(4) The BITTERN was delivered in October 2009.
(5) The charterer has an option to extend the charter by 2 periods of
11 to 13 months each.
(6) Options for construction declared on December 27, 2007.
(7) Firm contracts converted to options in December 2008.
Glossary of Terms:
Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.
Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.
Operating days: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
Conference Call Information
As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET on Thursday, November 5th, 2009, to discuss these results.
To participate in the teleconference, investors and analysts are invited to call 800-573-4840 in the U.S., or 617-224-4326 outside of the U.S., and reference participant code 19856539. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.
A replay will be available following the call until November 12th, 2009. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 96143049.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping, Inc., headquartered in New York City, is a leading global owner of Supramax dry bulk vessels, which are dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons, or dwt, and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the U.S. Securities and Exchange Commission.
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