| Eagle Bulk Shipping Inc. Reports Fourth Quarter and Fiscal Year 2009 Results |
| NEW YORK, Mar 2, 2010 (GlobeNewswire via COMTEX) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the fourth quarter and fiscal year ended December 31, 2009.
Financial highlights included: For the Fourth Quarter:
-- Net Income of $2.19 million or $0.04 per share (based on a weighted
average of 62,084,656 diluted shares outstanding for the quarter) on net
revenues of $42.0 million.
-- Gross time charter revenues were $43.6 million. Gross revenues for the
comparable quarter in 2008 were $62.4 million.
-- EBITDA, as adjusted for exceptional items under the terms of the
Companys credit agreement, was $25.2 million for the fourth quarter of
2009. During the comparable quarter in 2008 were $33.5 million.
-- Fleet utilization rate for the fourth quarter was 99.6%.
-- Took delivery of two newbuilding vessels, Bittern and Canary, which
immediately entered their respective time charters.
For Fiscal Year 2009:
-- Net Income of $33.3 million, or $0.60 per share (based on a weighted
average of 55,923,308 diluted shares outstanding for the period) on net
revenues of $192.6 million. Net income for 2008 was $61.6 million or
$1.31 per share.
-- Gross time charter revenue were $199.9 million in 2009, compared to
$194.3 million for the 2008 fiscal year
-- EBITDA, as adjusted for exceptional items under the terms of the
Companys credit agreement, was $121.2 million compared to $127.7 million
in 2008.
-- Fleet utilization rate for 2009 was 99.6%.
-- Took delivery of four newbuilding vessels, Crested Eagle, Stellar Eagle,
Bittern and Canary, which immediately entered their respective time
charters.
Subsequent to the end of the 2009 year, in January and February of 2010, the Company took delivery of six newbuilding vessels, Crane, Avocet, Egret Bulker, Thrasher, Golden Eagle, and Imperial Eagle. Four of these vessels entered into their long-term time charters representing minimum aggregate contracted revenues of $198 million, excluding profit sharing, while two vessels entered into one year time charters linked to the Baltic Supramax Index. Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "Eagle Bulk maintained profitability and continuing operational excellence in 2009, despite ongoing challenges in the global dry bulk market during the first half of the year. As the market improved in the latter half of 2009, Eagle Bulk benefited from our well-timed entry into Baltic Supramax Index-linked ("BSI") charters. Additional highlights included the successful deliveries of four newbuild vessels, as well as the favorable amendment to the Companys credit facility that strengthened and added flexibility to the balance sheet. "These developments have, in turn, allowed us to look forward in 2010 with a focus on unlocking shareholder value. Already in 2010, we have taken delivery of 6 newbuilds with minimum aggregate contracted revenues of approximately $200 million, excluding profit sharing. For the balance of this year, we have scheduled additional deliveries of 7 newbuilds with minimum aggregate contracted revenues in excess of $200 million, excluding profit sharing. "We are also poised to benefit from direct participation in the spot market, as 28% of our 2010 open days are unfixed while an additional 16% of days are tied to the BSI. In aggregate, this 44% exposure to the spot market occurs against the backdrop of improved industry fundamentals and recovering dry bulk demand. With one of the industrys youngest, most versatile fleets, cash flow stability and a strong operating platform, Eagle Bulk is well-positioned to create value for its shareholders in the year ahead." Results for the three months ended December 31, 2009 and 2008 For the fourth quarter of 2009, the Company reported net income of $2,190,694 or $0.04 per share, based on a weighted average of 62,084,656 diluted shares outstanding. In the comparable fourth quarter of 2008, the Company reported net income of $9,159,252 or $0.20 per share, based on a weighted average of 46,915,087 diluted shares outstanding. All of the Companys revenues were earned from time charters. Gross revenues in the quarter ended December 31, 2009 were $43,550,569, compared to $62,410,576 recorded in the comparable quarter in 2008. Net revenues during the quarter ended December 31, 2009 were $42,024,017 compared to $59,962,501 in the quarter ended December 31, 2008. Revenues in 2009 were impacted by lower time charter rates due to prevailing market conditions. Net revenues recorded in the 2009 quarter include non-cash amortization of fair value below contract value of time charters acquired of $701,542, compared to a non-cash charge of $535,487 recorded in the 2008 quarter which relates to the fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned were $2,228,094 and $2,983,561 in the fourth quarters of 2009 and 2008, respectively. Total operating expenses in the quarter ended December 31, 2009 were $31,592,816 compared to $43,539,354 recorded in the fourth quarter of 2008. The Company operated 27 vessels in the fourth quarter of 2009 compared to 23 vessels in 2008. Despite the increase in fleet size and the corresponding increase in vessel expenses and depreciation, total operating expenses in the fourth quarter of 2009 was lower primarily due to lower general and administrative expenses compared to the previous fourth quarter of 2008, which was also impacted by a one time write-off relating to conversion of newbuilding contracts into options. EBITDA, adjusted for exceptional items under the terms of the Companys credit agreement, was $25,189,121 for the fourth quarter of 2009, compared to $33,474,374 for the fourth quarter of 2008. (Please see below for a reconciliation of EBITDA to net income). Results for the years ended December 31, 2009 and 2008 For the year ended December 31, 2009, the Company reported net income of $33,287,271 or $0.60 per share, based on a weighted average of 55,923,308 diluted shares outstanding. In the comparable year ended December 31, 2008, the Company reported net income of $61,632,809 or $1.31 per share, based on a weighted average of 46,888,788 diluted shares outstanding. All of the Companys revenues were earned from Time Charters. Gross revenues for the year ended December 31, 2009 were $199,851,763, an increase of 3% from the $194,253,142 recorded in 2008. Net revenues for the year ended December 31, 2009 were $192,574,826 compared to $185,424,949 for 2008, an increase of 4% primarily due to the operation of a larger fleet in 2009, which, however, was offset by lower time charter rates. Net revenues in 2009 include non-cash amortization of the fair value below contract value of time charters acquired of $2,643,820, compared to $799,540 recorded in 2008. Brokerage commissions incurred on revenues earned were $9,920,757 and $9,627,733 in 2009 and 2008, respectively. Total operating expenses in 2009 increased to $127,204,266 from $108,669,180 in 2008. The increase in expenses is attributable to a larger fleet size in operation for 2009. Costs in 2009 were impacted by higher depreciation expenses and increases in vessel crew costs, insurance costs, costs relating to anti-piracy measures, and general increases in costs of stores and spares. Despite these increases in vessel and depreciation expenses, general and administrative expenses were lower in 2009 compared to 2008, even as the fleet grew in size. EBITDA, adjusted for exceptional items under the terms of the Companys credit agreement, decreased by 5% to $121,238,582 in 2009, from $127,683,156 in 2008. (Please see below for a reconciliation of EBITDA to net income). Newbuilding Program The Company had entered into vessel newbuilding contracts at shipyard in Japan and China. During 2009, four vessels, Crested Eagle, Stellar Eagle, Bittern and Canary were constructed and delivered into the Companys fleet. During the previous year, 2008, three vessels, Wren, Woodstar, and Crowned Eagle, were delivered into the fleet. As of December 31, 2009, the Companys newbuilding program now consists of 20 vessels to be built and delivered during 2010-11. As of December 31, 2009, the Company has recorded advances of $464,173,887 towards the construction cost of these 20 vessels. These costs include progress payments to the shipyards, capitalized interest on debt drawn for the progress payments, insurance, legal, and technical supervision costs. (Table below provides anticipated delivery dates on the newbuilding fleet). Liquidity and Capital Resources Net cash provided by operating activities during the years ended December 31, 2009 and 2008 was $90,524,861 and $109,535,918, respectively. Net cash used in investing activities during 2009 and 2008, was $228,624,263 and $336,657,686, respectively. Investing activities in 2009 related to advances for the newbuilding vessel construction program. Investing activities during 2008 primarily reflected the purchase of the GOLDENEYE and REDWING, which were delivered in the second and third quarter of 2008, respectively, and advances for the newbuilding vessel construction program. Net cash provided by financing activities during 2009 and 2008 was $200,235,313 and $83,426,938, respectively. In 2009, the Company raised $100 million in equity through its shelf equity program. Gross borrowings in 2009 were $159,215,000 and the Company used part of the proceeds from the equity offering to repay $48,645,523 of debt. In 2008, the Company borrowed $192,358,513 from its revolving credit facility which was used to partly fund the REDWING and fund the advances for the construction of newbuilding vessels. In 2008, the Company also paid $93,592,906 in dividends. As of December 31, 2009, the cash balance was $71,344,773 compared to a cash balance of $9,208,862 at December 31, 2008. In addition, $13,500,000 in cash deposits are maintained with the Companys lender for loan compliance purposes and this amount is recorded in Restricted Cash on the balance sheet as of December 31, 2009. Also recorded in Restricted Cash is an amount of $276,056 which is collateralizing a letter of credit relating to the Companys office lease. At December 31, 2009, the Company had outstanding debt of $900,170,880. In August 2009, the Company amended its credit facility which among other things reduced the facility to $1.2 billion with a maturity in July 2014, amended the applicable interest margin to 2.5% over LIBOR, and until the Company is in compliance with the original covenants for two consecutive accounting periods, amended the collateral covenants from market values to book values, reduced the EBITDA to interest coverage ratio, and allocated half the net proceeds from any equity issuance to repay debt and reduce the facility. The repayment of $48.6 million from the last equity offering reduced the facility to $1.151 billion. 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 companys 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 Companys 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 for the three-month periods ended December 31, 2009 and 2008 and for the years ended December 31, 2009 and 2008:
Three Three
Months Months
ended ended Year ended Year ended
December December December 31, December 31,
31, 2009 31, 2008 2009 2008
----------- ----------- ------------ ------------
Net Income/(Loss) $2,190,694 $9,159,252 $33,287,271 $61,632,809
Interest Expense 8,308,289 5,302,645 28,904,610 15,816,573
Depreciation and Amortization 12,000,856 10,229,942 44,329,258 33,948,840
Amortization of fair value (below)
above market of time charter acquired (701,542) (535,487) (2,643,820) (799,540)
----------- ----------- ------------ ------------
EBITDA 21,798,297 24,156,352 103,877,319 110,598,682
Adjustments for Exceptional Items:
Write-off of Advances for Vessel
Construction (1) -- 3,882,888 -- 3,882,888
Write-off of Financing Fees (1) -- 2,089,701 3,383,289 2,089,701
Non-cash Compensation Expense (2) 3,390,824 3,345,433 13,977,974 11,111,885
----------- ----------- ------------ ------------
Credit Agreement EBITDA $25,189,121 $33,474,374 $121,238,582 $127,683,156
----------- ----------- ------------ ------------
(1) One time charge (see Notes to the financial statements)
(2) Stock based compensation related to stock options, restricted stock units.
Capital Expenditures and Drydocking The Companys capital expenditures relate to the purchase of vessels and capital improvements to acquired vessels, which are expected to enhance the revenue earning capabilities and safety of these vessels. In addition to the capital expenditures on newbuilding vessels as described above, major capital expenditures include funding the Companys 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. Although the Company has some flexibility regarding the timing of its drydocking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years. Funding of these requirements is anticipated to be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce available days and operating days during that period. 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. In 2009, eight vessels were drydocked and the Company incurred $4,477,244 in drydocking related costs. In 2008, three vessels were drydocked at a cost of $2,388,776. 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:
----------------------- -------- -------------
Off-hire Projected
Quarter Ending Days(1) Costs(2)
----------------------- -------- -------------
March 31, 2010 44 $1.10 million
June 30, 2010 22 $0.55 million
September 30, 2010 66 $1.65 million
December 31, 2010 44 $1.10 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 Companys selected consolidated financial and other data for the periods indicated below.
CONSOLIDATED STATEMENTS OF OPERATIONS:
Three Three
Months Months
Year ended Year ended ended ended
December 31, December 31, December December
31, 31,
2009 2008 2009 2008
------------ ------------ ----------- -----------
Revenues, net of
commissions $192,574,826 $185,424,949 $42,024,017 $59,962,501
Vessel Expenses 50,161,091 36,270,382 12,662,198 11,338,294
Depreciation and
Amortization 44,329,258 33,948,840 12,000,856 10,229,942
General and Administrative
Expenses 32,713,917 34,567,070 6,929,762 18,088,230
Gain on Sale of Vessel -- -- -- --
Write-off advances for
vessel construction -- 3,882,888 -- 3,882,888
------------ ------------ ----------- -----------
Total Operating Expenses 127,204,266 108,669,180 31,592,816 43,539,354
------------ ------------ ----------- -----------
Operating Income 65,370,560 76,755,769 10,431,201 16,423,147
Interest Expense 28,904,610 15,816,573 8,308,289 5,302,645
Interest Income (204,610) (2,783,314) (67,782) (128,451)
Write-off deferred
financing costs 3,383,289 2,089,701 -- 2,089,701
------------ ------------ ----------- -----------
Net Interest Expense 32,083,289 15,122,960 8,240,507 7,263,895
------------ ------------ ----------- -----------
Net Income $33,287,271 $61,632,809 $2,190,694 $9,159,252
============ ============ =========== ===========
Weighted Average Shares
Outstanding:
Basic 55,897,946 46,800,550 62,066,463 46,915,087
Diluted 55,923,308 46,888,788 62,084,656 46,915,087
Per Share Amounts:
Basic Net Income $0.60 $1.32 $0.04 $0.20
Diluted Net Income $0.60 $1.31 $0.04 $0.20
Cash dividends declared
and paid -- $2.00 -- $0.50
Fleet Operating Data
Number of Vessels in
Operating fleet 27 23 27 23
Fleet Ownership Days 9,106 7,229 2,393 2,069
Fleet Available Days 8,999 7,172 2,342 2,055
Fleet Operating Days 8,966 7,139 2,332 2,045
Fleet Utilization Days 99.6% 99.5% 99.6% 99.5%
CONSOLIDATED BALANCE SHEETS:
December 31,
--------------------------------
2009 2008
--------------- ---------------
ASSETS:
Current assets:
Cash and cash equivalents $71,344,773 $9,208,862
Accounts receivable 7,443,450 4,357,837
Prepaid expenses 4,989,446 3,297,801
Fair value above contract value
of time charters acquired 427,359 --
--------------- ---------------
Total current assets 84,205,028 16,864,500
--------------- ---------------
Noncurrent assets:
Vessels and vessel
improvements, at cost, net of
accumulated depreciation of
$125,439,001
and $84,113,047, respectively 1,010,609,956 874,674,636
Advances for vessel
construction 464,173,887 411,063,011
Other fixed assets, net of
accumulated amortization of
$59,519 and $4,556,
respectively 258,347 219,245
Restricted cash 13,776,056 11,776,056
Deferred drydock costs 5,266,289 3,737,386
Deferred financing costs 21,044,379 24,270,060
Fair value above contract value
of time charters acquired 4,103,756 4,531,115
Fair value of derivative
instruments 4,765,116 15,039,535
--------------- ---------------
Total noncurrent assets 1,523,997,786 1,345,311,044
--------------- ---------------
Total assets $1,608,202,814 $1,362,175,544
=============== ===============
LIABILITIES & STOCKHOLDERS
EQUITY
Current liabilities:
Accounts payable $2,289,333 $2,037,060
Accrued interest 7,810,931 7,523,057
Other accrued liabilities 3,827,718 3,021,975
Deferred revenue and fair value
below contract value of time
charters acquired 7,718,902 2,863,184
Unearned charter hire revenue 4,858,133 5,958,833
--------------- ---------------
Total current liabilities 26,505,017 21,404,109
--------------- ---------------
Noncurrent liabilities:
Long-term debt 900,170,880 789,601,403
Deferred revenue and Fair value
below contract value of time
charters acquired 26,389,796 29,205,196
Fair value of derivative
instruments 35,408,049 50,538,060
--------------- ---------------
Total noncurrent liabilities 961,968,725 869,344,659
--------------- ---------------
Total liabilities 988,473,742 890,748,768
--------------- ---------------
Commitment and contingencies
Stockholders equity:
Preferred stock, $.01 par
value, 25,000,000 shares
authorized, none issued -- --
Common stock, $.01 par value,
100,000,000 shares authorized,
62,126,665 and 47,031,300
shares issued and outstanding,
respectively 621,267 470,313
Additional paid-in capital 724,250,125 614,241,646
Retained earnings (net of
dividends declared of
$262,118,388 as of December
31, 2009 and 2008,
respectively) (74,499,387) (107,786,658)
Accumulated other comprehensive
loss (30,642,933) (35,498,525)
--------------- ---------------
Total stockholders equity 619,729,072 471,426,776
--------------- ---------------
Total Liabilities and
Stockholders Equity $1,608,202,814 $1,362,175,544
=============== ===============
CONSOLIDATED STATEMENTS OF CASH FLOWS:
Year Ended December 31,
-------------------------------------------
2009 2008 2007
------------- ------------- -------------
Cash flows from operating activities
Net income $33,287,271 $61,632,809 $52,243,981
Adjustments to reconcile net income to net cash
provided by operating activities:
Items included in net income not
affecting cash flows:
Depreciation and amortization 41,380,917 31,379,443 24,791,502
Amortization of deferred drydocking
costs 2,948,341 2,569,396 1,644,144
Amortization of deferred financing
costs 1,373,998 244,837 242,357
Write-off of deferred financing
costs 3,383,289 2,089,701 --
Write-off of advances for vessel
construction -- 3,882,888 --
Amortization of fair value (below)
above contract value of time
charter acquired (2,643,820) (799,540) 3,740,000
Gain on sale of vessel -- -- (872,568)
Non-cash compensation expense 13,977,974 11,111,885 4,256,777
Changes in operating assets and
liabilities:
Accounts receivable (3,085,613) (965,376) (2,776,256)
Prepaid expenses (1,691,645) (2,139,688) (137,292)
Accounts payable 252,273 (1,584,499) 1,971,400
Accrued interest 1,429,939 1,707,326 (344,933)
Accrued expenses 805,743 1,158,703 146,148
Drydocking expenditures (4,477,244) (2,388,776) (3,624,851)
Deferred revenue 4,684,138 -- --
Unearned charter hire revenue (1,100,700) 1,636,809 1,608,964
------------- ------------- -------------
Net cash provided by operating
activities 90,524,861 109,535,918 82,889,373
Cash flows from investing
activities:
Vessels and vessel improvements and
Advances for vessel construction (228,530,198) (336,438,441) (458,262,048)
Purchase of other fixed assets (94,065) (219,245) --
Proceeds from sale of vessel -- -- 12,011,482
------------- ------------- -------------
Net cash used in investing
activities (228,624,263) (336,657,686) (446,250,566)
Cash flows from financing
activities
Issuance of common stock 99,999,997 237,328 239,848,264
Equity issuance costs (2,708,951) -- (5,642,117)
Bank borrowings 159,215,000 192,358,513 369,708,070
Repayment of bank debt (48,645,523) -- (12,440,000)
Changes in restricted cash (2,000,000) (2,651,440) (2,600,000)
Deferred financing costs (4,515,623) (12,890,502) (12,749,841)
Cash used to settle net share equity
awards (1,109,587) (34,055) --
Cash dividend -- (93,592,906) (82,134,982)
------------- ------------- -------------
Net cash provided by financing
activities 200,235,313 83,426,938 493,989,394
Net increase/(decrease) in Cash 62,135,911 (143,694,830) 130,628,201
Cash at beginning of period 9,208,862 152,903,692 22,275,491
------------- ------------- -------------
Cash at end of period $71,344,773 $9,208,862 $152,903,692
============= ============= =============
Supplemental cash flow information:
Cash paid during the period for
Interest (including Capitalized
interest of $26,643,519,
$20,385,190 and $8,775,957 in 2009,
2008 and 2007, respectively and
Commitment Fees) $52,760,344 $33,942,541 $21,807,953
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 our revenue earning charters on our operating fleet as of December 31, 2009.
Daily Time
Year
Vessel Built Dwt Time Charter Expiration (1) Charter Hire Rate
------------------- ----- ------ ------------------------------ ---------------------
Bittern (2) 2009 57,809 Jan 2015 $18,850
Jan 2015 to Dec 2018/Apr 2019 $18,000 (with
profit share)
Canary (3) 2009 57,809 Mar 2015 $18,850
Mar 2015 to Dec 2018/Apr 2019 $18,000 (with
profit share)
September 2010 to November
Cardinal (4) 2004 55,362 2010 $16,250
Condor 2001 50,296 Jul 2010 to Oct 2010 $22,000
Crested Eagle (5) 2009 55,989 January 2011 to April 2011 $11,500 + Index share
Crowned Eagle (6) 2008 55,940 March 2010 to May 2010 $25,000
Falcon 2001 51,268 April 2010 to June 2010 $39,500
Goldeneye (7) 2002 52,421 May 2010 to July 2010 Index
Griffon 1995 46,635 February 2010 to May 2010 $9,500
Harrier 2001 50,296 April 2010 to August 2010 $13,500
Hawk I 2001 50,296 May 2010 to August 2010 $13,000
Heron (8) 2001 52,827 January 2011 to May 2011 $26,375
Jaeger (9) 2004 52,248 April 2010 to July 2010 $26,000
Kestrel I 2004 50,326 March 2010 to July 2010 $11,500
Kite (10) 1997 47,195 November 2010 to January 2011 $17,000
Kittiwake (11) 2002 53,146 August 2010 to October 2010 Index
Merlin (12) 2001 50,296 December 2010 to March 2011 $25,000
Osprey I (13) 2002 50,206 March 2010 to May 2010 $18,000
Peregrine (14) 2001 50,913 Jan 2010 $8,500
Jan 2010 to Oct 2010/Mar 2011 $10,500 + Index share
Redwing (15) 2007 53,411 August 2010 to October 2010 Index
Shrike 2003 53,343 May 2010 to August 2010 $25,600
September 2010 to November
Skua (16) 2003 53,350 2010 Index
Sparrow (17) 2000 48,225 February 2010 to May 2010 $10,000
Stellar Eagle 2009 55,989 February 2010 to May 2010 $12,000
Tern 2003 50,200 December 2009 to March 2010 $8,500
Mar 2010 to June 2010/Aug 2010 $23,500
Woodstar (18) 2008 53,390 Jan 2014 $18,300
Jan 2014 to Dec 2018/Apr 2019 $18,000 (with
profit share)
Wren (19) 2008 53,349 Dec 2011 $24,750
Dec 2011 to Dec 2018/Apr 2019 $18,000 (with
profit share)
------------------- ----- ------ ------------------------------ ---------------------
(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)The BITTERN has entered into a long-term charter. The charter rate until Jan 2015 is
$18,850 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 $18,479.
(3)The CANARY has entered into a long-term charter. The charter rate until March 2015 is
$18,850 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 $18,487.
(4)Upon conclusion of the previous charter in September 2009, the CARDINAL commenced a
new one year charter at $16,250 per day.
(5)The charterer of the CRESTED EAGLE has exercised an option to extend the charter
period by 11 to 13 months from February 2010 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.
(6)Upon completion of the previous charter in December 2009, the CROWNED EAGLE commenced
a charter for three to five months at $25,000 per day.
(7)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.
(8)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.
(9)Upon completion of the previous charter in January 2010, the JAEGER commenced a
charter for three to five months at $26,000 per day.
(10)Upon completion of the previous charter in January 2010, the KITE commenced a one
year charter at $17,000 per day.
(11)Upon conclusion of the previous charter, the KITTIWAKE entered 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.
(12)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.
(13)Upon completion of the previous charter in December 2009, the OSPREY I commenced a
charter for four to six months at $18,000 per day.
(14)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.
(15)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.
(16)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.
(17)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 Companys 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%.
(18)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.
(19)The WREN has entered into a long-term charter. The charter rate until Dec 2011 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.
The following table, as of December 31, 2009, represents certain information about the Companys newbuilding vessels being constructed and their employment upon delivery:
Year
Built
-- Daily
Actual Time
or Charter
Expected
Hire
Delivery Time Charter Rate Profit
Vessel Dwt (1) Employment Expiration (2) (3) Share
------------------- ------ -------- ------------------------- ------- -------
Thrasher (4) (5) 53,100 2010Q1 Apr 2016 $18,400 --
50%
Apr 2016 to Dec 2018/Apr over
2019 $18,000 $22,000
Crane (4) (6) 58,000 2010Q1 Apr 2015 $18,850 --
50%
Apr 2015 to Dec 2018/Apr over
2019 $18,000 $22,000
Avocet (4) (7) 53,100 2010Q1 May 2016 $18,400 --
50%
May 2016 to Dec 2018/May over
2019 $18,000 $22,000
50%
over
Egret Bulker (4) 58,000 2010Q1 Oct 2012 to Feb 2013 $17,650 $20,000
Golden Eagle (4) 56,000 2010Q1 Dec 2010 to Mar 2011 Index --
Imperial Eagle (4) 56,000 2010Q1 Jan 2010 to Mar 2011 Index --
50%
over
Gannet Bulker (8) 58,000 2010Q2 Jan 2013 to May 2013 $17,650 $20,000
50%
over
Grebe Bulker (8) 58,000 2010Q2 Jan 2013 to May 2013 $17,650 $20,000
50%
over
Ibis Bulker (8) 58,000 2010Q2 Mar 2013 to Jul 2013 $17,650 $20,000
50%
over
Jay 58,000 2010Q3 Dec 2015 $18,500 $21,500
50%
Dec 2015 to Dec 2018/Apr over
2019 $18,000 $22,000
50%
over
Kingfisher 58,000 2010Q3 Dec 2015 $18,500 $21,500
50%
Dec 2015 to Dec 2018/Apr over
2019 $18,000 $22,000
Martin 58,000 2010Q3 Feb 2017 to Feb 2018 $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 --
50%
over
Petrel (8) 58,000 2011Q4 Jun 2014 to Oct 2014 $17,650 $20,000
50%
over
Puffin (8) 58,000 2011Q4 Jul 2014 to Nov 2014 $17,650 $20,000
50%
over
Roadrunner (8) 58,000 2011Q4 Aug 2014 to Dec 2014 $17,650 $20,000
50%
over
Sandpiper (8) 58,000 2011Q4 Sep 2014 to Jan 2015 $17,650 $20,000
CONVERTED INTO
OPTIONS
-------------------
Snipe (10) 58,000 2012Q1 Charter Free -- --
Swift (10) 58,000 2012Q1 Charter Free -- --
Raptor (10) 58,000 2012Q2 Charter Free -- --
Saker (10) 58,000 2012Q2 Charter Free -- --
Besra (9,10) 58,000 2011Q4 Charter Free -- --
Cernicalo (9,10) 58,000 2011Q1 Charter Free -- --
Fulmar (9,10) 58,000 2011Q3 Charter Free -- --
Goshawk (9,10) 58,000 2011Q4 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 rate presented are gross daily charter rates before
brokerage commissions ranging from 1.25% to 6.25% to third party ship brokers.
(4)The THRASHER, CRANE, AVOCET, EGRET BULKER, GOLDEN EAGLE and IMPERIAL EAGLE
delivered in the first quarter of 2010.
(5)The THRASHER has entered into a long-term charter. The charter rate until April
2016 is $18,400 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 $18,272.
(6)The CRANE has entered into a long-term charter. The charter rate until April
2015 is $18,850 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 $18,489.
(7)The AVOCET has entered into a long-term charter. The charter rate until May
2016 is $18,400 per day. Subsequently, the charter until redelivery in December
2018 to May 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 $18,274.
(8)The charterer has an option to extend the charter by 2 periods of 11 to 13
months each.
(9)Options for construction declared on December 27, 2007.
(10)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 Bulks senior management team will host a teleconference and webcast at 8:30 a.m. ET on Wednesday, March 3, 2010, to discuss these results. To participate in the teleconference, investors and analysts are invited to call 866-831-6267 in the U.S., or 617-213-8857 outside of the U.S., and reference participant code 63596371. 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 11:59 PM ET on March 10th, 2010. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 29309520. 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, managements 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. Visit our website at www.eagleships.com This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: Eagle Bulk Shipping Inc. CONTACT: Eagle Bulk Shipping Inc. Company Contact: Alan Ginsberg, Chief Financial Officer +1 212-785-2500 Perry Street Communications, New York Investor Relations / Media: Jon Morgan +1 212-741-0014 |