First Quarter Net Income Increased 69%
First Quarter Net Time Charter Revenue Increased 36%
Declares First Quarter Dividend of $0.50
NEW YORK, May 6, 2008 (PRIME NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the first quarter of 2008.
Financial highlights for the First Quarter included:
* Income from vessel operations of $16.9 million or $0.36 per share, up 44% from $11.7 million or $0.31 per share in the first quarter of 2007. (Income from vessel operations is net income adjusted for non-cash compensation charges. Please see below for a reconciliation of income from vessel operations to net income). * Net Income of $14.3 million or $0.31 per share (based on a weighted average of 46,925,494 diluted shares outstanding for the quarter), up 69% from net income of $8.5 million or $0.23 per share (based on a weighted average of 37,480,914 diluted shares outstanding for the quarter) in the first quarter of 2007. * Gross time charter revenue increased by $9.1 million, or 31%, to $38.6 million for the first quarter of 2008, from $29.5 million for the first quarter of 2007. Net time charter revenue increased by $9.8 million, or 36%, to $36.7 million for the first quarter of 2008, from $26.9 million for the first quarter of 2007 * EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, increased by 27% to $27.5 million for the first quarter of 2008, from $21.8 million for the first quarter of 2007. Please see below for a reconciliation of EBITDA to net income. * Declared and paid a dividend of $0.50 per share, or $23.4 million, on March 18, 2008, based on the fourth quarter 2007 results.
Based on the first quarter results, the Company has declared a cash dividend of $0.50 per share payable on or about May 23, 2008, to shareholders of record as of May 20, 2008.
Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "We are very pleased with our solid results as the fleet continues to deliver superior performance and generate significant cash flows. This allows 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, shareholders have realized aggregate dividends of $5.60 per share.
"Looking forward, Eagle Bulk is poised to realize significant growth from our well-timed, $1.5 billion capital investment program in newbuilding vessels and opportunistic acquisitions. We will be taking delivery of the first of the 35 vessels this summer, to be followed by an accelerated vessel delivery calendar thereafter. And beginning this summer, we also have several on-the-water vessels of our operating fleet coming open for re-chartering to take advantage of the strong dry bulk market. These factors have positioned the Company to significantly increase cash flow and returns for our shareholders in the second half of 2008 and beyond."
Results of Operations for the three month periods ended March 31, 2008 and 2007
All of the Company's revenues were earned from Time Charters. Gross revenues in the first quarter of 2008 were $38,610,921, an increase of 31% from the $29,476,374 recorded in the comparable quarter in 2007, primarily due to a larger fleet size, as reflected by increased operating days, and an increase in daily time charter rates. Brokerage commissions incurred on revenues earned were $1,924,905 and $1,487,842 in the first quarters of 2008 and 2007, respectively. The first quarter of 2007 also reflected an amortization charge of net prepaid and deferred charter revenue of $1,080,000. Net revenues during the three months ended March 31, 2008, and 2007 were $36,686,016 and $26,908,532, respectively, an increase of 36%.
For the first quarter of 2008, total vessel expenses incurred amounted to $7,991,261. These expenses included $7,439,959 in vessel operating costs and $551,302 in technical management fees paid to the Company's third-party technical managers. For the corresponding quarter in 2007, total vessel expenses were $6,245,898 which included $5,836,461 in vessel operating costs and $409,437 in technical management fees.
General and administrative expenses which include onshore vessel administration related expenses such as payroll, non-cash compensation expenses, and overhead costs for the three-month periods ended March 31, 2008 and 2007 were $5,049,159 and $4,903,043, respectively.
EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, increased by 27% to $27,547,805 for the first quarter of 2008, from $21,769,767 for the comparable quarter in 2007. (Please see below for a reconciliation of EBITDA to net income)
In the first quarter of 2008, income from vessel operations, which is net income adjusted for non-cash compensation charges, was $16,861,513 or $0.36 per share, up 44% from $11,747,011 or $0.31 per share in the first quarter of 2007. (Please see below for a reconciliation of income from vessel operations to net income).
Net income for the first quarter of 2008 was $14,345,810, an increase of 69% from $8,487,788 in the comparable quarter in 2007. Earnings per share in the first quarter of 2008 were $0.31, based on a weighted average of 46,925,494 diluted shares outstanding. In the comparable quarter of 2007, earnings per share were $0.23, based on a weighted average of 37,480,914 diluted shares outstanding.
Liquidity and Capital Resources
Net cash provided by operating activities during the three month periods ended March 31, 2008 and 2007 was $26,454,362 and $18,801,874, respectively. The increase was primarily due to cash generated from the operation of the fleet for 1,638 days in the first quarter of 2008 compared to 1,407 days in the first quarter of 2007.
Net cash used in investing activities during the first quarter of 2008 was $13,399,474 compared to $37,251,697 during the corresponding quarter in 2007. Investing activities in this quarter related primarily to making progress payments and related construction costs for the newbuilding vessels. Investing activities in the first quarter of 2007 related primarily to making deposits toward acquiring second-hand vessels and the newbuilding vessels. The first quarter of 2007 also saw the Company receive proceeds from the sale of its oldest vessel.
Net cash used in financing activities during the first quarter of 2008 was $17,445,157, compared to net cash provided by financing activities of $115,169,544 during the first quarter of 2007. Financing activities in this quarter included borrowing $6,630,000 from the revolving credit facility to fund progress payments for the newbuilding vessels and paying $23,378,577 in dividends. Financing activities in the first quarter of 2007 mostly relate to receipt of $107,428,803 in net proceeds from the sale of common shares, net borrowings of $25,649,741 from the revolving credit facility, and payment of $18,309,000 in dividends.
The Company's cash balances at the end of the first quarters of 2008 and 2007 were $148,513,423 and $118,995,212, respectively. In addition, the Company maintains restricted cash of $9,000,000 with its lender for loan compliance purposes.
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.
Our revolving credit facility permits us to pay dividends in amounts up to our cumulative free cash flows which is our 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. Therefore, we believe that this non-GAAP measure is important for our investors as it reflects our 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
March 31,
2008 2007
----------- -----------
Net Income $14,345,810 $ 8,487,788
Interest Expense 3,350,253 3,152,125
Depreciation and Amortization 7,336,039 5,790,631
Amortization of Prepaid and
Deferred Revenue -- 1,080,000
----------- -----------
EBITDA 25,032,102 18,510,544
Adjustments for Exceptional Items:
Non-cash Compensation Expense(1) 2,515,703 3,259,223
----------- -----------
Credit Agreement EBITDA $27,547,805 $21,769,767
=========== ===========
(1) Stock based compensation related to stock options, restricted
stock units, and management's participation in profits interests
in the Company's former principal shareholder Eagle Ventures LLC.
Reconciliation of GAAP net income to Non-GAAP income from vessel operations:
Three Months Ended
March 31,
2008 2007
----------- -----------
Net Income $14,345,810 $ 8,487,788
Adjustments:
Non-cash Compensation Expense 2,515,703 3,259,223
----------- -----------
Income from Vessel Operations $16,861,513 $11,747,011
=========== ===========
Capital Expenditures and Drydocking
The Company's capital expenditures relate to the purchase of vessels and capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels. As of March 31, 2008, the fleet currently consists of 18 vessels which are currently operational and 35 newbuilding vessels which have been contracted for construction and will be delivered between mid-2008 and 2012.
In addition to acquisitions that may be undertaken in future periods, the Company's other 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. Management anticipates that vessels are to be drydocked every two and a half years and funding is to be met with cash from operations. 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. The Company did not drydock any vessel in the three months ended March 31, 2008. 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)
-------------- ---------------- ------------------
June 30, 2008 30 $1.00 million
September 30, 2008 60 $2.00 million
December 31, 2008 15 $0.50 million
March 31, 2009 15 $0.50 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 (unaudited) for the periods indicated below.
CONSOLIDATED STATEMENTS OF OPERATIONS:
Three Months Ended
March 31,
2008 2007
-----------------------------
Revenues, net of Commissions $ 36,686,016 $ 26,908,532
Vessel Expenses 7,991,261 6,245,898
Depreciation and Amortization 7,336,039 5,790,631
General and Administrative Expenses 5,049,159 4,903,043
Gain on Sale of Vessel -- (872,568)
-----------------------------
Total Operating Expenses 20,376,459 16,067,004
-----------------------------
Operating Income 16,309,557 10,841,528
Interest Expense 3,350,253 3,152,125
Interest Income (1,386,506) (798,385)
-----------------------------
Net Interest Expense 1,963,747 2,353,740
-----------------------------
Net Income $ 14,345,810 $ 8,487,788
=============================
Weighted Average Shares Outstanding :
Basic 46,752,538 37,450,578
Diluted 46,925,494 37,480,914
Per Share Amounts:
Basic Net Income $ 0.31 $ 0.23
Diluted Net Income $ 0.31 $ 0.23
Cash Dividends Declared and Paid $ 0.50 $ 0.51
Fleet Operating Data
Number of Vessels in operating fleet 18 16
Fleet Ownership Days 1,638 1,407
Fleet Available Days 1,638 1,395
Fleet Operating Days 1,633 1,387
Fleet Utilization Days 99.7% 99.4%
CONSOLIDATED BALANCE SHEETS:
March 31, 2008 Dec. 31, 2007
-------------- --------------
ASSETS: (Unaudited)
Current Assets:
Cash $ 148,513,423 $ 152,903,692
Accounts Receivable 3,279,383 3,392,461
Prepaid Expenses 1,299,813 1,158,113
-------------- --------------
Total Current Assets 153,092,619 157,454,266
Fixed Assets:
Vessels and Vessel Improvements,
at cost, net of Accumulated
Depreciation of $59,442,019 and
$52,733,604, respectively 598,659,588 605,244,861
Advances for Vessel Construction 358,542,727 344,854,962
Restricted Cash 9,276,056 9,124,616
Deferred Drydock Costs, net of
Accumulated Amortization of
$3,080,877 and $2,453,253,
respectively 3,356,233 3,918,006
Deferred Financing Costs 14,550,824 14,479,024
Other Assets 10,809,238 932,638
-------------- --------------
Total Assets $1,148,287,285 $1,136,008,373
============== ==============
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 2,145,264 $ 3,621,559
Accrued Interest 3,561,824 455,750
Other Accrued Liabilities 1,816,342 1,863,272
Unearned Charter Hire Revenue 5,028,551 4,322,024
--------------- ---------------
Total Current Liabilities 12,551,981 10,262,605
Long-term Debt 603,872,890 597,242,890
Other Liabilities 31,008,992 13,531,883
--------------- ---------------
Total Liabilities 647,433,863 621,037,378
Stockholders' Equity:
Preferred Stock, $.01 par value,
25,000,000 shares authorized, none
issued -- --
Common shares, $.01 par value,
100,000,000 shares authorized,
46,757,153 and 46,727,153 shares
issued and outstanding,
respectively 467,571 467,271
Additional Paid-In Capital 605,444,933 602,929,530
Retained Earnings (net of Dividends
declared of $191,904,059 and
$168,525,482 respectively) (84,859,328) (75,826,561)
Accumulated Other Comprehensive
(Loss) (20,199,754) (12,599,245)
--------------- ---------------
Total Stockholders' Equity 500,853,422 514,970,995
--------------- ---------------
Total Liabilities and
Stockholders' Equity $ 1,148,287,285 $ 1,136,008,373
=============== ===============
CONSOLIDATED STATEMENTS OF CASH FLOWS:
Three Months Ended
March 31, March 31,
2008 2007
------------- -------------
Cash Flows from Operating Activities:
Net Income $ 14,345,810 $ 8,487,788
Adjustments to Reconcile Net Income
to Net Cash provided by Operating
Activities:
Items included in net income not
affecting cash flows:
Depreciation 6,708,415 5,515,648
Amortization of Deferred Drydocking
Costs 627,624 274,983
Amortization of Deferred Financing
Costs 61,907 58,012
Amortization of Prepaid and Deferred
Charter Revenue -- 1,080,000
Non-cash Compensation Expense 2,515,703 3,259,223
Gain on Sale of Vessel -- (872,568)
Changes in Operating Assets and
Liabilities:
Accounts Receivable 113,078 (236,485)
Prepaid Expenses (141,700) 2,666
Accounts Payable (1,476,295) 496,342
Accrued Interest 3,106,074 81,792
Accrued Expenses (46,930) 194,636
Drydocking Expenditures (65,851) --
Unearned Charter Hire Revenue 706,527 459,837
------------- -------------
Net Cash Provided by Operating
Activities 26,454,362 18,801,874
Cash Flows from Investing Activities:
Advances for Vessel Acquisition and
Improvements (123,142) (23,475,897)
Advances for Vessel Construction (13,276,332) (25,787,282)
Proceeds from Sale of Vessel -- 12,011,482
------------- -------------
Net Cash Used in Investing
Activities (13,399,474) (37,251,697)
Cash Flows from Financing
Activities:
Issuance of Common Stock -- 110,171,870
Equity Issuance Costs -- (2,743,067)
Bank Borrowings 6,630,000 38,089,741
Repayment of Bank Debt -- (12,440,000)
Changes in Restricted Cash (151,440) 400,000
Deferred Financing Costs (545,140) --
Cash Dividends (23,378,577) (18,309,000)
------------- -------------
Net Cash (Used in)/Provided by
Financing Activities (17,445,157) 115,169,544
Net (Decrease)/Increase in Cash (4,390,269) 96,719,721
Cash at Beginning of Period 152,903,692 22,275,491
------------- -------------
Cash at End of Period $ 148,513,423 $ 118,995,212
============= =============
Supplemental Cash Flow Information:
Cash paid during the period for
Interest (including Capitalized
interest of $3,169,495 and $375,845
respectively) $ 5,891,487 $ 3,485,585
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 Company's revenue earning charters on its operating fleet as of March 31, 2008:
---------------------------------------------------------------------
Daily Time
Year Delivered to Time Charter Charter
Vessel Built Dwt Charterer Expiration (1) Hire Rate
------ ------- ------- ------------ ---------------- ----------
Cardinal 2004 55,408 June 21, May 2008 to $28,000
2007 August 2008
Condor 2001 50,296 March 19, May 2009 to $20,500
(2) 2007 August 2009
Falcon 2001 50,296 April 22, April 2008 to $20,950
(3) 2005 June 2008
Griffon 1995 46,635 March 18, March 2009 to $20,075
2007 June 2009
Harrier 2001 50,296 June 21, June 2009 to $24,000
(4) 2007 September 2009
Hawk I 2001 50,296 April 1, April 2009 to $22,000
2007 June 2009
Heron 2001 52,827 January 28, January 2011 to $26,375
(5) 2008 March 2011
Jaeger 2004 52,248 July 12, July 2008 to $27,500
(6) 2007 September 2008
Kestrel I 2004 50,326 July 1, April 2008 to $18,750
(7) 2006 June 2008
Kite 1997 47,195 August 11, September 2009 to $21,000
2007 January 2010
Merlin 2001 50,296 December 19, December 2010 to $25,000
(8) 2007 March 2011
Osprey I 2002 50,206 September 1, July 2008 to $21,000
(9) 2005 November 2008
Peregrine 2001 50,913 December 16, December 2008 to $20,500
2006 March 2009
Sparrow 2000 48,225 February 28, February 2010 to $34,500
(10) 2008 April 2010
Tern 2003 50,200 March 9, February 2009 to $20,500
(11) 2008 April 2009
Shrike 2003 53,343 April 24, April 2009 to $24,600
(12) 2007 August 2009
Skua 2003 53,350 June 20, May 2009 to $24,200
(13) 2007 August 2009
Kittiwake 2002 53,146 June 27, May 2008 to $30,400
(14) 2007 August 2008
---------------------------------------------------------------------
(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) The charterer of the CONDOR has exercised its option to extend
the charter period by 11 to 13 months at a time charter rate of
$22,000 per day.
(3) Upon conclusion of the current charter, the FALCON commences a
new time charter with a rate of $39,500 per day for 21 to 23
months. The charterer has an option to extend the charter period
by 11 to 13 months at a daily time charter rate of $41,000.
(4) The daily rate for the HARRIER is $27,000 for the first year and
$21,000 for the second year. Revenue recognition is based on an
average daily rate of $24,000.
(5) The previous time charter on the HERON at a daily rate of $24,000
ended on January 28, 2008. The vessel commenced a new time
charter with a rate of $26,375 per day for 36 to 39 months. The
charterer has an option for a further 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.
(6) The charter rate for the JAEGER may reset at the beginning of
each month based on the average time charter rate for the Baltic
Supramax Index, but in no case be greater than $27,500 per day or
less than $22,500 per day.
(7) The charterer of the KESTREL I has exercised its option to extend
the charter period by 11 to 13 months at a daily time charter
rate of $20,000 per day.
(8) The MERLIN is on a 36 to 39 month time charter at the following
daily rates: $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.
(9) The charterer of the OSPREY I has exercised its option to extend
the charter period by up to 11 to 13 months at a time charter
rate of $25,000 per day. The charterer has an additional option
to extend for a further 11 to 13 months at a time charter rate of
$25,000 per day.
(10) The SPARROW was previously on a 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. This charter
ended on February 28, 2008.
(11) The TERN previously was on a time charter at a daily rate of
$19,000. This charter ended in March 2008 and the charterer has
exercised its option to extend the charter period by 11 to 13
months at a time charter rate of $20,500 per day.
(12) The charterer of the SHRIKE has an option to extend the charter
period by 12 to 14 months at a daily time charter rate of
$25,600.
(13) The charterer of the SKUA has an option to extend the charter
period by 11 to 13 months at a daily time charter rate of
$25,200.
(14) The KITTIWAKE is employed on a time charter 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 be greater than $30,400 per day or less than
$24,400 per day.
As of March 31, 2008, the Company has contracted for 35 vessels to be constructed. The following table represents certain information about the Company's newbuilding vessels and their employment upon delivery:
---------------------------------------------------------------------
Year
Built - Time Charter Daily Time
Expected Employment Charter Profit
Vessel Dwt Delivery(1) Expiration(2) Hire Rate(3) Share
-------------- ------ ---------- ------------ ----------- -------
Wren 53,100 Aug 2008 Feb 2012 $24,750 --
Feb 2012 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Woodstar 53,100 Oct 2008 Jan 2014 $18,300 --
Jan 2014 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Crowned Eagle 56,000 Nov 2008 Charter Free -- --
Crested Eagle 56,000 Feb 2009 Charter Free -- --
Stellar Eagle 6,000 Apr 2009 Charter Free -- --
Thrush 53,100 Sep 2009 Charter Free -- --
Bittern 58,000 Sep 2009 Dec 2014 $18,850 --
Dec 2014 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Canary 58,000 Oct 2009 Jan 2015 $18,850 --
Jan 2015 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Thrasher 53,100 Nov 2009 Feb 2016 $18,400 --
Feb 2016 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Crane 58,000 Nov 2009 Feb 2015 $18,850 --
Feb 2015 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Avocet 53,100 Dec 2009 Mar 2016 $18,400 --
Mar 2016 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Egret (4) 58,000 Dec 2009 Sep 2012 to $17,650 50% over
Jan 2013 $20,000
Golden Eagle 56,000 Jan 2010 Charter Free -- --
Gannet (4) 58,000 Jan 2010 Oct 2012 to $17,650 50% over
Feb 2013 $20,000
Imperial Eagle 56,000 Feb 2010 Charter Free -- --
Grebe(4) 58,000 Feb 2010 Nov 2012 to $17,650 50% over
Mar 2013 $20,000
Ibis (4) 58,000 Mar 2010 Dec 2012 to $17,650 50% over
Apr 2013 $20,000
Jay 58,000 Apr 2010 Sep 2015 $18,500 50% over
$21,500
Sep 2015 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Kingfisher 58,000 May 2010 Oct 2015 $18,500 50% over
$21,500
Oct 2015 to
Dec 2018/ $18,000 50% over
Apr 2019 $22,000
Martin 58,000 Jun 2010 Dec 2016 to
Dec 2017 $18,400 --
Besra (5) 58,000 Oct 2010 Charter Free -- --
Cernicalo (5) 58,000 Jan 2011 Charter Free -- --
Nighthawk 58,000 Mar 2011 Sep 2017 to
Sep 2018 $18,400 --
Oriole 58,000 Jul 2011 Jan 2018 to
Jan 2019 $18,400 --
Fulmar (5) 58,000 Jul 2011 Charter Free -- --
Owl 58,000 Aug 2011 Feb 2018 to
Feb 2019 $18,400 --
Petrel (4) 58,000 Sep 2011 Jun 2014 to $17,650 50% over
Oct 2014 $20,000
Goshawk (5) 58,000 Sep 2011 Charter Free -- --
Puffin (4) 58,000 Oct 2011 Jul 2014 to $17,650 50% over
Nov 2014 $20,000
Roadrunner (4) 58,000 Nov 2011 Aug 2014 to $17,650 50% over
Dec 2014 $20,000
Sandpiper (4) 58,000 Dec 2011 Sep 2014 to $17,650 50% over
Jan 2015 $20,000
Snipe 58,000 Jan 2012 Charter Free -- --
Swift 58,000 Feb 2012 Charter Free -- --
Raptor 58,000 Mar 2012 Charter Free -- --
Saker 58,000 Apr 2012 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 rates presented are gross daily charter
rates before brokerage commissions, ranging from 2.25% to 6.25%,
to third party ship brokers.
(4) The charterer has an option to extend the charter by 2 periods
of 11 to 13 months each.
(5) Options for construction exercised on December 27, 2007.
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, May 7, 2008, to discuss these results.
To participate in the teleconference, investors and analysts are invited to call 866-356-3093 in the U.S., or 617-597-5381 outside of the U.S., and reference participant code 39649226. 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 12:00 a.m. ET on May 14th, 2008. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 26938903.
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