In the news release, Pangaea Logistics Solutions Ltd. Reports
Financial Results for the Quarter Ended September 30, 2022, issued 09-Nov-2022 by Pangaea Logistics Solutions Ltd.
over PR Newswire, we are advised by the company that the Conference
ID, should read "13733450" rather than "13733405" as originally
issued inadvertently. The complete, corrected release follows:
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 global provider of comprehensive maritime logistics
solutions, announced today its results for the three months ended
September 30, 2022.
THIRD QUARTER 2022 RESULTS
(As compared to
the Third Quarter 2021)
- Total revenue decreased 13% year over year to $184.5 million; voyage revenue decreased 7% year
over year
- Net income attributable to Pangaea of $18.8 million, or $0.42 per diluted share, a decline of 30% y/y
-Adjusted net income attributable to Pangaea of $23.3 million, or $0.52 per diluted share, an increase of 8%
y/y
- Adjusted EBITDA of $38.5 million,
an increase of 14% y/y
- Operating cash flow of $32.6
million, an increase of 41% y/y
- Time Charter Equivalent ("TCE") rates earned by Pangaea of
$24,107 per day, a decline of 16%
y/y
- Cash and cash equivalents of $117.9
million, an increase of $68.8
million y/y
- Ratio of net debt to trailing twelve-month Adjusted EBITDA of
1.2x
For the third quarter ended September 30, 2022, Pangaea
reported non-GAAP adjusted net income of $23.3 million, or $0.52 per diluted share, on total revenue of
$184.5 million. Third quarter TCE
rates declined 16.2% on a year-over-year basis, while total
shipping days, which include both voyage and time charter days,
declined 14.2% to 4,553 days, when compared to the year-ago period.
In a declining market, Pangaea's flexible business plan turns
defensive, with high cost chartered in ships redelivered to be
later replaced by lower market cost 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, compared to an
average of $28,770 per day for the
same period in 2021. During the third quarter 2022, the Company's
average TCE rate exceeded the benchmark average Baltic Panamax and
Supramax indices by approximately 41%, supported by Pangaea's
long-term contracts of affreightment ("COAs"), specialized fleet,
and cargo-focused strategy.
Total Adjusted EBITDA increased 14% to $38.5 million in the third quarter due to more
owned ship days from a larger owned fleet and a decline in
charter-hire expenses, given lower market rates, partially offset
by fewer shipping days. Third quarter Adjusted EBITDA margin
increased to 20.9%, when compared to the year-ago period.
As of September 30, 2022, the Company had $117.9 million in cash and equivalents. Total
debt, including lease finance obligations was $298 million. At the end of the third quarter
2022, the ratio of net debt to trailing twelve-month adjusted
EBITDA was 1.2x. During the nine 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 other long-term liabilities and paid $9.0 million of cash dividends.
The Company's Board of Directors declared a quarterly cash
dividend of $0.10 per common share,
to be paid on December 15, 2022, to
all shareholders of record as of December 1,
2022.
STRATEGIC UPDATE
Pangaea remains committed to developing a leading dry bulk
logistics and transportation services company of scale, providing
its customers with specialized shipping and supply chain and
logistics offerings in commodity and niche markets, which drive
premium returns.
Leverage integrated shipping and logistics model.
In addition to operating the largest high ice class dry bulk
fleet of panamax and post-panamax vessels globally, Pangaea also
performs stevedoring services, together with port and terminal
operations capabilities. During the third quarter, the Company
continued to expand its logistics offering to new and existing
customers; collaborated with multiple third-party freight and
logistics providers to transport 140,000 tons of coal to a power
plant operator in the northeastern United
States; provided stevedoring and terminal services to an
offshore cable installation vessel; discharged 13,000 tons of
cement in super-sack bags in Texas; provided lay berth and support services
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 strong fleet utilization. In the
third quarter, Pangaea's ten ice class 1A panamax and post-panamax
vessels were fully deployed and trading in the Arctic under
ten-year contracts that utilize approximately 35% of annual
available days. This is the first year of full operation of all
four post-panamax ships the Company built specifically for this
service, which were delivered in 2021.
Continue to upgrade fleet, while divesting of older, non-core
assets. 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, while continuing to operate
a total fleet of approximately 55 vessels in worldwide trades.
Looking ahead, the Company intends to opportunistically manage its
fleet with the purpose of maximizing TCE rates, while continuing to
support client requirements on an on-demand basis.
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," stated
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," noted 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 management team will host a conference call to
discuss the Company's financial results on Thursday, November 10, 2022 at 8:30 a.m., Eastern Time (ET). Accompanying
presentation materials will be available in the Investor Relations
section of the Company's website at
https://www.pangaeals.com/investors/. To listen to a live
broadcast, go to the site at least 15 minutes prior to the
scheduled start time in order to register, download, and install
any necessary audio software.
To participate in the live teleconference:
Domestic Live: 1-877-269-7751
International Live: 1-201-389-0908
To listen to a replay of the teleconference, which will be
available through November 24,
2022:
Domestic Replay: 1-844-512-2921
International Replay: 1-412-317-6671
Conference ID: 13733450
Pangaea Logistics Solutions
Ltd.
Consolidated
Statements of Operations
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Voyage
revenue
|
$
173,167,990
|
|
$
186,352,802
|
|
$
522,693,814
|
|
$
411,978,482
|
Charter
revenue
|
11,309,147
|
|
26,676,433
|
|
49,089,682
|
|
71,567,645
|
Total
revenue
|
184,477,137
|
|
213,029,235
|
|
571,783,496
|
|
483,546,127
|
Expenses:
|
|
|
|
|
|
|
|
Voyage
expense
|
74,716,194
|
|
60,405,741
|
|
207,874,485
|
|
154,357,377
|
Charter hire
expense
|
50,750,809
|
|
103,721,059
|
|
194,175,432
|
|
219,960,415
|
Vessel operating
expense
|
15,361,640
|
|
11,753,951
|
|
41,479,173
|
|
30,022,420
|
General and
administrative
|
5,776,666
|
|
4,442,064
|
|
16,195,441
|
|
14,676,755
|
Depreciation and
amortization
|
7,365,561
|
|
7,163,479
|
|
21,960,413
|
|
16,451,303
|
Loss on impairment of
vessels
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on sale of
vessels
|
—
|
|
—
|
|
318,032
|
|
—
|
Total
expenses
|
153,970,870
|
|
187,486,294
|
|
485,010,785
|
|
435,468,270
|
|
|
|
|
|
|
|
|
Income from
operations
|
30,506,267
|
|
25,542,941
|
|
86,772,711
|
|
48,077,857
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(4,116,319)
|
|
(2,416,677)
|
|
(11,122,224)
|
|
(6,994,593)
|
Income attributable to
Non-controlling interest recorded as long-term liability interest
expense
|
(2,418,844)
|
|
(325,742)
|
|
(5,961,851)
|
|
(775,487)
|
Unrealized (loss) gain
on derivative instruments, net
|
(4,508,758)
|
|
5,344,327
|
|
(510,093)
|
|
13,670,475
|
Other
income
|
298,679
|
|
550,781
|
|
517,117
|
|
801,743
|
Total other (expense)
income, net
|
(10,745,242)
|
|
3,152,689
|
|
(17,077,051)
|
|
6,702,138
|
|
|
|
|
|
|
|
|
Net income
|
19,761,025
|
|
28,695,630
|
|
69,695,660
|
|
54,779,995
|
Income attributable to
non-controlling interests
|
(972,611)
|
|
(1,700,399)
|
|
(5,706,848)
|
|
(2,703,318)
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
$
18,788,414
|
|
$ 26,995,231
|
|
$
63,988,812
|
|
$
52,076,677
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.42
|
|
$
0.61
|
|
$
1.44
|
|
$
1.18
|
Diluted
|
$
0.42
|
|
$
0.60
|
|
$
1.43
|
|
$
1.16
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
44,415,575
|
|
44,004,980
|
|
44,386,628
|
|
43,994,726
|
Diluted
|
44,640,278
|
|
44,927,456
|
|
44,624,228
|
|
44,704,303
|
Pangaea Logistics Solutions
Ltd.
Consolidated
Balance Sheets
|
|
|
September 30,
2022
|
|
December 31,
2021
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
117,948,614
|
|
$
56,208,902
|
Accounts receivable
(net of allowance of $3,273,083 and $1,990,459 at September 30,
2022 and December 31, 2021, respectively)
|
42,343,295
|
|
54,259,265
|
Bunker
inventory
|
30,651,975
|
|
27,147,760
|
Advance hire, prepaid
expenses and other current assets
|
31,741,934
|
|
46,347,687
|
Total current
assets
|
222,685,818
|
|
183,963,614
|
|
|
|
|
Fixed assets,
net
|
465,137,127
|
|
471,912,810
|
Advances for vessel
purchases
|
1,710,000
|
|
1,990,000
|
Finance lease right of
use assets, net
|
44,880,530
|
|
45,195,759
|
Other non-current
Assets
|
4,497,445
|
|
3,961,823
|
Total
assets
|
$
738,910,920
|
|
$
707,024,006
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
$
44,491,725
|
|
$
49,154,439
|
Related party notes
payable
|
—
|
|
242,852
|
Deferred
revenue
|
17,233,861
|
|
32,205,312
|
Current portion of
secured long-term debt
|
12,916,094
|
|
15,443,115
|
Current portion of
finance lease liabilities
|
16,261,356
|
|
14,479,803
|
Dividend
payable
|
197,741
|
|
213,765
|
Total current
liabilities
|
91,100,777
|
|
111,739,286
|
|
|
|
|
Secured long-term debt,
net
|
96,447,396
|
|
105,836,797
|
Finance lease
liabilities, net
|
172,496,539
|
|
170,959,553
|
Long-term liabilities -
other
|
21,268,827
|
|
17,806,976
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized and no shares issued
or outstanding
|
—
|
|
—
|
Common stock, $0.0001
par value, 100,000,000 shares authorized; 45,922,692 shares issued
and outstanding at September 30, 2022; 45,617,840 shares issued and
outstanding at December 31, 2021
|
4,592
|
|
4,562
|
Additional paid-in
capital
|
162,704,593
|
|
161,534,280
|
Retained
earnings
|
140,702,171
|
|
85,663,375
|
Total Pangaea
Logistics Solutions Ltd. equity
|
303,411,356
|
|
247,202,217
|
Non-controlling
interests
|
54,186,025
|
|
53,479,177
|
Total stockholders'
equity
|
357,597,381
|
|
300,681,394
|
Total liabilities
and stockholders' equity
|
$
738,910,920
|
|
$
707,024,006
|
|
Pangaea Logistics
Solutions, Ltd.
Consolidated Statements of Cash Flows
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
Operating
activities
|
Unaudited
|
|
Unaudited
|
Net income
|
$
69,695,660
|
|
$
54,779,995
|
Adjustments to
reconcile net income to net cash provided by operations:
|
|
|
|
Depreciation and
amortization expense
|
21,960,413
|
|
16,451,303
|
Amortization of
deferred financing costs
|
764,897
|
|
676,109
|
Amortization of
prepaid rent
|
91,453
|
|
86,442
|
Unrealized loss (gain)
on derivative instruments
|
510,093
|
|
(13,670,475)
|
Income from equity
method investee
|
(517,117)
|
|
(801,743)
|
Earnings attributable
to non-controlling interest recorded as other long term
liability
|
5,961,851
|
|
775,487
|
Provision for doubtful
accounts
|
1,282,624
|
|
193,860
|
Loss on impairment of
vessels
|
3,007,809
|
|
—
|
Loss on sale of
vessel
|
318,032
|
|
—
|
Drydocking
costs
|
(5,972,024)
|
|
(7,616,318)
|
Share-based
compensation
|
1,457,972
|
|
1,734,958
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
10,633,346
|
|
(12,343,647)
|
Bunker
inventory
|
(3,504,215)
|
|
(8,915,026)
|
Advance hire, prepaid
expenses and other current assets
|
14,095,660
|
|
(19,146,819)
|
Accounts payable,
accrued expenses and other current liabilities
|
(2,946,749)
|
|
18,487,297
|
Deferred
revenue
|
(14,971,451)
|
|
11,985,858
|
Net cash provided by
operating activities
|
101,868,254
|
|
42,677,281
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of vessels and
vessel improvements
|
(18,370,977)
|
|
(159,710,150)
|
Advances for vessel
purchases
|
(1,710,000)
|
|
—
|
Write off (Purchase) of
fixed assets and equipment
|
187,638
|
|
(137,874)
|
Contribution to
non-consolidated subsidiaries
|
(18,505)
|
|
—
|
Proceeds from sale of
vessels
|
8,400,000
|
|
—
|
Net cash used in
investing activities
|
(11,511,844)
|
|
(159,848,024)
|
|
|
|
|
Financing
activities
|
|
|
|
Proceeds from long-term
debt
|
—
|
|
79,150,000
|
Payments of financing
fees and issuance costs
|
(331,317)
|
|
(1,992,346)
|
Payments of long-term
debt
|
(12,223,052)
|
|
(58,614,319)
|
Proceeds from finance
leases
|
15,000,000
|
|
109,125,739
|
Payments of finance
lease obligations
|
(11,808,661)
|
|
(6,482,397)
|
Payments of other
long-term liabilities
|
(5,000,000)
|
|
(2,500,000)
|
Dividends paid to
non-controlling interests
|
(5,000,000)
|
|
(3,333,334)
|
Accrued common stock
dividends paid
|
(8,966,039)
|
|
(3,992,500)
|
Cash paid for incentive
compensation shares relinquished
|
(287,629)
|
|
(129,190)
|
Contributions from
non-controlling interest recorded as long-term liability
|
—
|
|
6,901,911
|
Payments to
non-controlling interest recorded as long-term liability
|
—
|
|
(195,597)
|
Net cash (used in)
provided by financing activities
|
(28,616,698)
|
|
117,937,967
|
|
|
|
|
Net increase in cash
and cash equivalents
|
61,739,712
|
|
767,224
|
Cash and cash
equivalents at beginning of period
|
56,208,902
|
|
48,397,216
|
Cash and cash
equivalents at end of period
|
$
117,948,614
|
|
$
49,164,440
|
Pangaea Logistics Solutions
Ltd.
Reconciliation of
Non-GAAP Measures
(unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net Transportation
and Service Revenue
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
$
36,301,324
|
|
$ 30,003,396
|
|
$
106,349,167
|
|
$
62,836,408
|
Add:
|
|
|
|
|
|
|
|
|
Vessel Depreciation and
Amortization
|
|
7,347,170
|
|
7,145,088
|
|
21,905,239
|
|
16,369,507
|
Net transportation and
service revenue
|
|
$
43,648,494
|
|
$ 37,148,484
|
|
$
128,254,406
|
|
$
79,205,915
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net Income
|
|
19,761,025
|
|
28,695,630
|
|
69,695,660
|
|
54,779,995
|
Interest expense,
net
|
|
4,116,319
|
|
2,416,677
|
|
11,122,224
|
|
6,994,593
|
Income attributable to
Non-controlling interest recorded as long-term liability interest
expense
|
|
2,418,844
|
|
325,742
|
|
5,961,851
|
|
775,487
|
Depreciation and
amortization
|
|
7,365,561
|
|
7,163,479
|
|
21,960,413
|
|
16,451,303
|
EBITDA
|
|
33,661,749
|
|
38,601,528
|
|
108,740,148
|
|
79,001,378
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
vessels
|
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on sale of
vessels
|
|
—
|
|
—
|
|
318,032
|
|
—
|
Share-based
compensation
|
|
319,188
|
|
369,224
|
|
1,457,972
|
|
1,734,958
|
Unrealized loss (gain)
on derivative instruments, net
|
|
4,508,758
|
|
(5,344,327)
|
|
510,093
|
|
(13,670,475)
|
Adjusted
EBITDA
|
|
$
38,489,695
|
|
$ 33,626,425
|
|
$
114,034,054
|
|
$
67,065,861
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
|
Net income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
18,788,414
|
|
$ 26,995,231
|
|
$
63,988,812
|
|
$
52,076,677
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding - basic
|
|
44,415,575
|
|
44,004,980
|
|
44,386,628
|
|
43,994,726
|
Weighted average number
of common shares outstanding - diluted
|
|
44,640,278
|
|
44,927,456
|
|
44,624,228
|
|
44,704,303
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
$
0.42
|
|
$
0.61
|
|
$
1.44
|
|
$
1.18
|
Earnings per common
share - diluted
|
|
$
0.42
|
|
$
0.60
|
|
$
1.43
|
|
$
1.16
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
|
|
|
Net Income attributable
to Pangaea Logistics Solutions Ltd.
|
|
$
18,788,414
|
|
$ 26,995,231
|
|
$
63,988,812
|
|
$
52,076,677
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Add: loss on
impairment of vessels
|
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on sale of
vessels
|
|
—
|
|
—
|
|
318,032
|
|
—
|
Unrealized loss (gain)
on derivative instruments
|
|
4,508,758
|
|
(5,344,327)
|
|
510,093
|
|
(13,670,475)
|
Non-GAAP adjusted net
income attributable to Pangaea Logistics Solutions Ltd.
|
|
$
23,297,172
|
|
$ 21,650,904
|
|
$
67,824,746
|
|
$
38,406,202
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
|
44,415,575
|
|
44,004,980
|
|
44,386,628
|
|
43,994,726
|
Weighted average number
of common shares - diluted
|
|
44,640,278
|
|
44,927,456
|
|
44,624,228
|
|
44,704,303
|
|
|
|
|
|
|
|
|
|
Adjusted EPS -
basic
|
|
$
0.52
|
|
$
0.49
|
|
$
1.53
|
|
$
0.87
|
Adjusted EPS -
diluted
|
|
$
0.52
|
|
$
0.48
|
|
$
1.52
|
|
$
0.86
|
INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used
herein, "GAAP" refers to accounting principles generally accepted
in the United States of America.
To supplement our consolidated financial statements prepared and
presented in accordance with GAAP, this earnings release discusses
non-GAAP financial measures, including non-GAAP net revenue and
non-GAAP adjusted EBITDA. This is considered a non-GAAP financial
measure as defined in Rule 101 of Regulation G promulgated by the
Securities and Exchange Commission. Generally, a non-GAAP financial
measure is a numerical measure of a company's historical or future
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. The presentation of this non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP.
We use non-GAAP financial measures for internal financial and
operational decision making purposes and as a means to evaluate
period-to-period comparisons of the performance and results of
operations of our core business. Our management believes that
non-GAAP financial measures provide meaningful supplemental
information regarding the performance of our core business by
excluding charges that are not incurred in the normal course of
business. Non-GAAP financial measures also facilitate management's
internal planning and comparisons to our historical performance and
liquidity. We believe certain non-GAAP financial measures are
useful to investors as they allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision making and are used by our institutional
investors and the analyst community to help them analyze the
performance and operational results of our core business.
Gross Profit. Gross profit represents total revenue
less net transportation and service revenue and less vessel
depreciation and amortization.
Net transportation and service revenue. Net
transportation and service revenue represents total revenue less
the total direct costs of transportation and services, which
includes charter hire, voyage and vessel operating expenses. Net
transportation and service revenue is included because it is used
by management and certain investors to measure performance by
comparison to other logistic service providers. Net transportation
and service revenue is not an item recognized by the generally
accepted accounting principles in the
United States of America, or U.S. GAAP, and should not be
considered as an alternative to net income, operating income, or
any other indicator of a company's operating performance required
by U.S. GAAP. Pangaea's definition of net transportation and
service revenue used here may not be comparable to an operating
measure used by other companies.
Adjusted EBITDA and adjusted EPS. Adjusted EBITDA
represents net income (or loss), determined in accordance with U.S.
GAAP, excluding interest expense, income taxes, depreciation and
amortization, loss on impairment, loss on sale and leaseback of
vessels, share-based compensation and other non-operating income
and/or expense, if any. Earnings per share represents net income
divided by the weighted average number of common shares
outstanding. Adjusted earnings per share represents net income
attributable to Pangaea Logistics Solutions Ltd. plus, when
applicable, loss on sale of vessel, loss on sale and leaseback of
vessel, loss on impairment of vessel, unrealized gains and losses
on derivative instruments, and certain non-recurring charges,
divided by the weighted average number of shares of common
stock.
There are limitations related to the use of net revenue versus
income from operations, adjusted EBITDA versus income from
operations, and adjusted EPS versus EPS calculated in accordance
with GAAP. In particular, Pangaea's definition of adjusted EBITDA
used here are not comparable to EBITDA.
The table set forth above provides a reconciliation of the
non-GAAP financial measures presented during the period to the most
directly comparable financial measures prepared in accordance with
GAAP.
About Pangaea Logistics Solutions Ltd.
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides
logistics services to a broad base of industrial customers who
require the transportation of a wide variety of dry bulk cargoes,
including grains, pig iron, hot briquetted iron, bauxite, alumina,
cement clinker, dolomite, and limestone. The Company addresses the
transportation needs of its customers with a comprehensive set of
services and activities, including cargo loading, cargo discharge,
vessel chartering, and voyage planning. Learn more at
www.pangaeals.com.
Investor Relations Contacts
Gianni Del
Signore
|
|
Stefan C.
Neely
|
Chief Financial
Officer
|
|
Vallum
Advisors
|
401-846-7790
|
|
|
Investors@pangaeals.com
|
|
PANL@val-adv.com
|
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The Company disclaims any obligation to publicly update
or revise these statements whether as a result of new information,
future events or otherwise, except as required by law. Such risks
and uncertainties include, without limitation, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for dry bulk shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors, as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at www.sec.gov.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/pangaea-logistics-solutions-ltd-reports-financial-results-for-the-quarter-ended-september-30-2022-301673616.html
SOURCE Pangaea Logistics Solutions Ltd.