Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended September 30, 2022

NEWPORT, R.I., Nov. 9, 2022 /PRNewswire/ — Pangaea Logistics Solutions Ltd. (“Pangaea” or the “Company”) (NASDAQ: PANL), a world supplier of complete maritime logistics options, introduced at the moment its outcomes for the three months ended September 30, 2022.

THIRD QUARTER 2022 RESULTS 
(As in comparison with the Third Quarter 2021)

• Total income decreased 13% yr over yr to $184.5 million; voyage income decreased 7% yr over yr
• Net earnings attributable to Pangaea of $18.8 million, or $0.42 per diluted share, a decline of 30% y/y
  -Adjusted internet earnings attributable to Pangaea of $23.3 million, or $0.52 per diluted share, a rise of 8% y/y
• Adjusted EBITDA of $38.5 million, a rise of  14% y/y
• Operating money circulation of $32.6 million, a rise of 41% y/y
• Time Charter Equivalent (“TCE”) charges earned by Pangaea of $24,107 per day, a decline of 16% y/y
• Cash and money equivalents of $117.9 million, a rise of $68.8 million y/y
• Ratio of internet debt to trailing twelve-month Adjusted EBITDA of 1.2x

For the third quarter ended September 30, 2022, Pangaea reported non-GAAP adjusted internet earnings of $23.3 million, or $0.52 per diluted share, on whole income of $184.5 million. Third quarter TCE charges declined 16.2% on a year-over-year foundation, whereas whole delivery days, which embrace each voyage and time constitution days, declined 14.2% to 4,553 days, when in comparison with the year-ago interval. In a declining market, Pangaea’s versatile business plan turns defensive, with excessive price chartered in ships redelivered to be later changed by decrease market price tonnage to be utilized in the Company’s cargo trades.

The TCE earned was $24,107 per day for the three months ended September 30, 2022, in comparison with a mean of $28,770 per day for the similar interval in 2021. During the third quarter 2022, the Company’s common TCE charge exceeded the benchmark common Baltic Panamax and Supramax indices by roughly 41%, supported by Pangaea’s long-term contracts of affreightment (“COAs”), specialised fleet, and cargo-focused technique.

Total Adjusted EBITDA elevated 14% to $38.5 million in the third quarter on account of extra owned ship days from a bigger owned fleet and a decline in charter-hire bills, given decrease market charges, partially offset by fewer delivery days. Third quarter Adjusted EBITDA margin elevated to twenty.9%, when in comparison with the year-ago interval.

As of September 30, 2022, the Company had $117.9 million in money and equivalents. Total debt, together with lease finance obligations was $298 million. At the finish of the third quarter 2022, the ratio of internet debt to trailing twelve-month adjusted EBITDA was 1.2x. During the 9 months ended September 30, 2022, the Company repaid $12.2 million of long-term debt, $11.8 million of finance leases, $5.0 million of different long-term liabilities and paid $9.0 million of money dividends.

The Company’s Board of Directors declared a quarterly money dividend of $0.10 per widespread share, to be paid on December 15, 2022, to all shareholders of document as of December 1, 2022.

STRATEGIC UPDATE

Pangaea stays dedicated to growing a number one dry bulk logistics and transportation providers firm of scale, offering its prospects with specialised delivery and provide chain and logistics choices in commodity and area of interest markets, which drive premium returns. 

Leverage built-in delivery and logistics mannequin.  In addition to working the largest excessive ice class dry bulk fleet of panamax and post-panamax vessels globally, Pangaea additionally performs stevedoring providers, along with port and terminal operations capabilities. During the third quarter, the Company continued to increase its logistics providing to new and current prospects; collaborated with a number of third-party freight and logistics suppliers to move 140,000 tons of coal to an influence plant operator in the northeastern United States; offered stevedoring and terminal providers to an offshore cable set up vessel; discharged 13,000 tons of cement in super-sack baggage in Texas; offered lay berth and help providers for a wind farm commissioning service operations vessel (“CSOV”) at our berth at Brayton Point in Somerset, Massachusetts; and, was awarded a stevedoring license in the Port of Freeport, Texas.

Continue to drive robust fleet utilization.  In the third quarter, Pangaea’s ten ice class 1A panamax and post-panamax vessels have been totally deployed and buying and selling in the Arctic beneath ten-year contracts that make the most of roughly 35% of annual accessible days. This is the first yr of full operation of all 4 post-panamax ships the Company constructed particularly for this service, which have been delivered in 2021. 

Continue to improve fleet, whereas divesting of older, non-core property.  In August 2022, the Company acquired the Bulk Sachuest, a 2010 Hyundai Vinashin shipyard-built 56,000 dwt dry bulk vessel, in the second-hand market for $16.6 million. With this acquisition, Pangaea now owns 25 ships, whereas persevering with to function a complete fleet of roughly 55 vessels in worldwide trades. Looking forward, the Company intends to opportunistically handle its fleet with the objective of maximizing TCE charges, whereas persevering with to help shopper necessities on an on-demand foundation.

MANAGEMENT COMMENTARY

“Our diverse portfolio of stable, long-term transportation contracts, leading positions in higher-margin ice-class trade routes and improved fleet utilization culminated in a strong third quarter performance, one highlighted by significant year-over-year growth in operating cash flow and Adjusted EBITDA,” acknowledged Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions.  “During the third quarter, all ten of our modern, Ice Class 1A vessels were active within premium-rate ice trades, contributing to a reported TCE rate that was 41% above the broader market benchmark.  While most dry-bulk trades experienced typical levels of seasonal softness during the summer months, demand within our core Ice Class routes was solid, positioning us to deliver another consecutive quarter of profitability.” 

“During a period of broader rate volatility, we continue to manage market risk through a combination of strategic COAs, increased backhaul activity, integrated logistics capabilities and expansion of our owned fleet. In October, we took delivery of the newest addition to our owned fleet, the M/V Bulk Sachuest, a 55,618 dwt supramax,” continued Filanowski.  “Bulk Sachuest is currently in service and is expected to contribute positively to both operating cash flow and net income beginning in the fourth quarter of 2022.”

“With more than 90% of our long-term debt sitting at a blended fixed rate of less than 5.1%, we are well insulated from a rising interest rate environment,” famous Filanowski.  “We ended the third quarter with cash and equivalents of $118 million, an increase of nearly $62 million from the beginning of the year, while our ratio of net debt to trailing twelve-month adjusted EBITDA was 1.2x at end of the third quarter. Entering the fourth quarter, our business remains strong, and our strategy remains consistent, supported by stable cash flow generation across our niche shipping and logistics markets. We will continue to be opportunistic and are well positioned for any market scenario.”

THIRD QUARTER 2022 CONFERENCE CALL

The Company’s administration workforce will host a convention name to debate the Company’s monetary outcomes on Thursday, November 10, 2022 at 8:30 a.m., Eastern Time (ET). Accompanying presentation supplies might be accessible in the Investor Relations part of the Company’s web site at https://www.pangaeals.com/investors/. To take heed to a reside broadcast, go to the website no less than quarter-hour previous to the scheduled begin time as a way to register, obtain, and set up any vital audio software program.

To take part in the reside teleconference:

Domestic Live:     1-877-269-7751 
International Live:     1-201-389-0908

To take heed to a replay of the teleconference, which might be accessible by way of November 24, 2022:

Domestic Replay:     1-844-512-2921
International Replay:     1-412-317-6671
Conference ID:     13733405

INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used herein, “GAAP” refers to accounting ideas usually accepted in the United States of America. To complement our consolidated monetary statements ready and introduced in accordance with GAAP, this earnings launch discusses non-GAAP monetary measures, together with non-GAAP internet income and non-GAAP adjusted EBITDA. This is taken into account a non-GAAP monetary measure as outlined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP monetary measure is a numerical measure of an organization’s historic or future efficiency, monetary place, or money flows that both excludes or contains quantities that aren’t usually excluded or included in the most immediately comparable measure calculated and introduced in accordance with GAAP. The presentation of this non-GAAP monetary info is just not supposed to be thought of in isolation or as an alternative for, or superior to, the monetary info ready and introduced in accordance with GAAP.

We use non-GAAP monetary measures for inner monetary and operational resolution making functions and as a way to guage period-to-period comparisons of the efficiency and outcomes of operations of our core business. Our administration believes that non-GAAP monetary measures present significant supplemental info relating to the efficiency of our core business by excluding fees that aren’t incurred in the regular course of business. Non-GAAP monetary measures additionally facilitate administration’s inner planning and comparisons to our historic efficiency and liquidity. We consider sure non-GAAP monetary measures are helpful to buyers as they permit for higher transparency with respect to key metrics utilized by administration in its monetary and operational resolution making and are utilized by our institutional buyers and the analyst group to assist them analyze the efficiency and operational outcomes of our core business.

Gross Profit. Gross revenue represents whole income much less internet transportation and repair income and fewer vessel depreciation and amortization.

Net transportation and repair income. Net transportation and repair income represents whole income much less the whole direct prices of transportation and providers, which incorporates constitution rent, voyage and vessel working bills. Net transportation and repair income is included as a result of it’s utilized by administration and sure buyers to measure efficiency by comparability to different logistic service suppliers. Net transportation and repair income is just not an merchandise acknowledged by the usually accepted accounting ideas in the United States of America, or U.S. GAAP, and shouldn’t be thought of as an alternative choice to internet earnings, working earnings, or every other indicator of an organization’s working efficiency required by U.S. GAAP. Pangaea’s definition of internet transportation and repair income used right here will not be corresponding to an working measure utilized by different firms.

Adjusted EBITDA and adjusted EPS. Adjusted EBITDA represents internet earnings (or loss), decided in accordance with U.S. GAAP, excluding curiosity expense, earnings taxes, depreciation and amortization, loss on impairment, loss on sale and leaseback of vessels, share-based compensation and different non-operating earnings and/or expense, if any. Earnings per share represents internet earnings divided by the weighted common variety of widespread shares excellent. Adjusted earnings per share represents internet earnings attributable to Pangaea Logistics Solutions Ltd. plus, when relevant, loss on sale of vessel, loss on sale and leaseback of vessel, loss on impairment of vessel, unrealized positive factors and losses on spinoff devices, and sure non-recurring fees, divided by the weighted common variety of shares of widespread inventory.

There are limitations associated to the use of internet income versus earnings from operations, adjusted EBITDA versus earnings from operations, and adjusted EPS versus EPS calculated in accordance with GAAP. In explicit, Pangaea’s definition of adjusted EBITDA used right here will not be corresponding to EBITDA.

The desk set forth above supplies a reconciliation of the non-GAAP monetary measures introduced throughout the interval to the most immediately comparable monetary measures ready in accordance with GAAP.

About Pangaea Logistics Solutions Ltd.

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) supplies logistics providers to a broad base of commercial prospects who require the transportation of all kinds of dry bulk cargoes, together with grains, pig iron, sizzling briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation wants of its prospects with a complete set of providers and actions, together with cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn extra at www.pangaeals.com.

Investor Relations Contacts

Forward-Looking Statements

Certain statements on this press launch are “forward-looking statements” inside the that means of the Private Securities Litigation Act of 1995. These forward-looking statements are based mostly on our present expectations and beliefs and are topic to a variety of threat components and uncertainties that might trigger precise outcomes to vary materially from these described in the forward-looking statements. The Company disclaims any obligation to publicly replace or revise these statements whether or not on account of new info, future occasions or in any other case, besides as required by legislation. Such dangers and uncertainties embrace, with out limitation, the energy of world economies and currencies, normal market situations, together with fluctuations in constitution charges and vessel values, modifications in demand for dry bulk delivery capability, modifications in our working bills, together with bunker costs, dry-docking and insurance prices, the market for our vessels, availability of financing and refinancing, constitution counterparty efficiency, skill to acquire financing and adjust to covenants in such financing preparations, modifications in governmental guidelines and rules or actions taken by regulatory authorities, potential legal responsibility from pending or future litigation, normal home and worldwide political situations, potential disruption of delivery routes on account of accidents or political occasions, vessels breakdowns and situations of off-hires and different components, in addition to different dangers which were included in filings with the Securities and Exchange Commission, all of which can be found at www.sec.gov.

SOURCE Pangaea Logistics Solutions Ltd.