Eagle Bulk Shipping Inc. Reports Fourth Quarter and Fiscal Year 2012 Results

Apr 01, 2013, 17:00 ET from Eagle Bulk Shipping Inc.

NEW YORK, April 1, 2013 /PRNewswire/ -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) today announced its results for the fourth quarter and fiscal year ended December 31, 2012. 

For the Fourth Quarter:

  • Net reported loss of $32.4 million or $1.92 per share (based on a weighted average of 16,849,175 diluted shares outstanding for the quarter), compared to net loss of $1.7 million, or $0.11 per share, for the comparable quarter of 2011.
  • Net revenues of $42.8 million, compared to $70.0 million for the comparable quarter in 2011. Gross time charter and freight revenues of $44.6 million, compared to $71.7 million for the comparable quarter of 2011.
  • EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $9.7 million for the fourth quarter of 2012, compared to $30.0 million for the fourth quarter of 2011.
  • Fleet utilization rate of 99.4%.

For the Fiscal Year 2012:

  • Net reported loss of $102.8 million or $6.30 per share (based on a weighted average of 16,328,132 diluted shares outstanding for the year), compared to net loss of $14.8 million, or $0.95 per share, for the comparable year of 2011.
  • Net revenues of $190.8 million, compared to $313.4 million for the comparable year of 2011. Gross time charter and freight revenues of $198.8 million, compared to $327.2 million for the comparable year of 2011.
  • EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $46.0 million for the year of 2012, compared to $108.9 million for the year of 2011.
  • Fleet utilization rate of 99.3%.

Sophocles N. Zoullas, Chairman and CEO, commented, "Amid ongoing challenges in the dry bulk market, Eagle Bulk continues to execute an opportunistic, short-term chartering strategy.  This approach maximizes revenue upside while ensuring Eagle Bulk is well-positioned when the market improves.  At the same time, management has successfully reduced costs while maintaining operational excellence across the board."

Subsequent Event

On January 3, 2013, a comprehensive termination agreement between the Company and KLC became effective, pursuant to which we agreed to accept $63.7 million on an installment note and 1,224,094 common shares of KLC stock as compensation for the early termination of the 13 charters with KLC. Under the termination agreement, a payment of approximately $10.0 million of the cash settlement was paid in the first quarter of 2013, and the balance of $53.7 million is to be paid in cash installments through 2021, with the majority of the payments to be paid in the last five years. The KLC stock certificates were issued on February 7, 2013 and are now being secured at the Korean Securities Depository until August 7, 2013, the date on which we would have been able to take possession of the share certificates. On March 28, 2013, the Korean court approved an amendment to KLC rehabilitation plan after receiving a favorable vote from the concerned parties. The amendment reduced our long term receivable from KLC to $5.5 million to be paid in cash installments through 2021; discounted our existing shares by a 1 to 15 ratio; and converted the remainder of the long term receivable to shares that bring our holding of KLC shares after the amendment to approximately 5%.

Results of Operations for the three-month period ended December 31, 2012 and 2011

For the fourth quarter of 2012, the Company reported a net loss of $32,423,775 or $1.92 per share, based on a weighted average of 16,849,175 diluted shares outstanding. In the comparable fourth quarter of 2011, the Company reported net loss of $1,698,979 or $0.11 per share, based on a weighted average of 15,675,180 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross time and voyage charter revenues in the quarter ended December 31, 2012 were $44,572,372 compared to $71,704,158 recorded in the comparable quarter in 2011. The decrease in gross revenues is attributable primarily to lower charter rates and a decrease in voyage charter revenues in the quarter ended December 31, 2012. Gross revenues recorded in the quarter ended December 31, 2012 and 2011, include an amount of $1,196,202 and $1,254,697, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the quarter ended December 31, 2012 and 2011 were $1,769,417 and $1,693,259, respectively. Net revenues during the quarter ended December 31, 2012 and 2011, were $42,802,955 and $70,010,899, respectively.

Total operating expenses for the quarter ended December 31, 2012 were $53,587,700 compared with $60,857,843 recorded in the fourth quarter of 2011. The Company operated 45 vessels in the fourth quarter of 2012 and 2011. The decrease in operating expenses was primarily due to a reduction in chartered-in days, and lower voyage expenses offset by the increase in vessels crew cost, insurances and vessel depreciation expense. The decrease in General and Administrative expenses is primarily attributable to a reduction in professional consultants' fees and a reduction in compensation expense compared to 2011.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, was $9,727,017 for the fourth quarter of 2012, compared with $29,989,681 for the fourth quarter of 2011. (Please see below for a reconciliation of EBITDA to net loss).

Results of Operations for the twelve-month period ended December 31, 2012 and 2011

For the twelve months ended December 31, 2012, the Company reported net loss of $102,800,903 or $6.30 per share, based on a weighted average of 16,328,132 diluted shares outstanding. In the comparable period of 2011, the Company reported net loss of $14,819,749 or $0.95 per share, based on a weighted average of 15,655,443 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross revenues for the twelve-month period ended December 31, 2012 were $198,828,140 compared to $327,210,063 recorded in the comparable period of 2011. The decrease in gross revenues is attributable to lower time charter rates and a decrease in voyage revenues in the year, offset marginally by operating a larger fleet. Gross revenues recorded in the twelve-month period ended December 31, 2012 and 2011, include an amount of $4,770,214 and $5,088,268, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the twelve-month periods ended December 31, 2012 and 2011 were $8,016,881 and $13,777,632, respectively. Net revenues during the twelve-month period ended December 31, 2012, decreased to $190,811,259 from $313,432,431 in the comparable period of 2011.

Total operating expenses were $228,029,512 in the twelve-month period ended December 31, 2012 compared to $281,764,140 recorded in the same period of 2011. The decrease in operating expenses was primarily due to a reduction in chartered-in days and lower voyage expenses offset by the increase in operating a larger fleet size which includes increases in vessels crew cost, insurances and vessel depreciation expense.  The decrease in General and Administrative expenses is primarily attributable to a reduction in professional consultants' fees and a reduction in compensation expense compared to 2011.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, was $46,034,385 for the twelve months ended December 31, 2012 compared with $108,853,142 for the same period of 2011. (Please see below for a reconciliation of EBITDA to net loss).

Liquidity and Capital Resources

Net cash provided by operating activities during the years ended December 31, 2012 and 2011 was $4,777,961 and $58,296,117, respectively. The change in 2012 from 2011 was primarily due to lower charter rates on time charter renewals and from operating the fleet for 16,389 days in 2012, and 17,514 days in 2011.

Net cash provided by investing activities during 2012 was $294,414, compared with net cash used in of $157,786,210 in 2011. Investing activities in 2011 reflected the purchase of the last eight newly constructed vessels, the Thrush, Nighthawk, Oriole, Owl, Petrel bulker, Puffin bulker, Roadrunner bulker and Sandpiper bulker, respectively. In July 2011, the Company sold, the Heron, for proceeds of $22,511,226, after brokerage commissions payable to a third party. In November 2011, Korea Line Corporation issued stock to Eagle Bulk at a fair value of $955,093, as part of our settlement with KLC.

Net cash used in financing activities in 2012 was $12,027,610, compared to net cash used of $4,556,384 in 2011. On June 20, 2012 the Company entered into a Fourth Amended and Restated Credit Agreement and incurred $11,788,295 of cash charges related to this amendment. In 2011, the Company repaid $21,875,735 toward our facility, and as part of our sixth amendatory and commercial framework agreement with our lenders we reduced our restricted cash by $19,000,000.

As of December 31, 2012, our cash balance was $18,119,968 compared to a cash balance of $25,075,203 at December 31, 2011. In addition, our Restricted cash balance includes $276,056, for collateralizing letters of credit relating to our office leases as of December 31, 2012. As of December 31, 2011, our Restricted cash balance included $276,056, for collateralizing letters of credit relating to our office leases and $394,362 which collateralized our derivatives positions.

At December 31, 2012, the Company's debt consisted of $1,129,478,741 in term loans and $15,387,468 paid-in-kind loans.

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 U.S. 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 herein may not be comparable to that used by other companies due to differences in methods of calculation.

Our term loan agreement require us to comply with financial covenants based on debt and interest ratio with extraordinary or exceptional items, interest, taxes, non-cash compensation, depreciation and amortization (Credit Agreement EBITDA). Therefore, we believe that this non-U.S. GAAP measure is important for our investors as it reflects our ability to meet our covenants. The following table is a reconciliation of net loss, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA: 

Three Months Ended

Twelve Months Ended

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

Net loss

$

(32,423,775)

$

(1,698,979)

$

(102,800,903)

$

(14,819,749)

Interest Expense

21,647,858

11,370,603

66,643,296

46,769,965

Depreciation and Amortization

19,338,072

19,624,596

77,588,428

73,084,105

Amortization of fair value below contract value of time charter acquired

(1,196,202)

(1,254,697)

(4,770,214)

(5,088,268)

EBITDA

7,365,953

28,041,523

36,660,607

99,946,053

Adjustments for Exceptional Items:

Non-cash Compensation Expense (1)

2,361,064

1,948,158

9,373,778

8,907,089

Credit Agreement EBITDA

$

9,727,017

$

29,989,681

$

46,034,385

$

108,853,142

(1)

Stock based compensation related to stock options, restricted stock units.

Capital Expenditures and Drydocking

Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels which are expected to enhance the revenue earning capabilities and safety of these vessels.

In addition to acquisitions that we may undertake in future periods, the Company's other major capital expenditures include funding the Company's program of regularly scheduled drydocking necessary to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its dry docking, 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. We anticipate that this process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating days during that period.

Drydocking costs incurred are deferred and amortized to expense on a straight-line basis over the period through the date of the next scheduled drydocking for those vessels. In 2012 three of our vessels were drydocked and we incurred $1,094,325 in drydocking related costs. In 2011, four of our vessels were drydocked and we incurred $2,809,406 in drydocking related costs. In 2010, five of our vessels were drydocked and we incurred $2,827,534 in drydocking related costs. 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)

March 31, 2013

22

$0.60 million

June 30, 2013

44

$1.20 million

September 30, 2013

22

$0.60 million

December 31, 2013

44

$1.20 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 for the periods indicated below.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended, December 31,

(Unaudited)

Twelve Months Ended, December 31,

2012

2011

2012

2011

Revenues, net of commissions

$42,802,955

$70,010,899

$190,811,259

$313,432,431

Voyage expenses

5,739,734

8,403,814

26,110,591

44,345,774

Vessel expenses

22,995,951

22,285,822

90,551,655

85,049,671

Charter hire expenses

-

3,202,586

1,713,417

41,215,875

Depreciation and amortization

19,338,072

19,624,596

77,588,428

73,084,105

General and administrative expenses

5,513,943

7,341,025

32,065,421

37,559,639

Loss from sale of vessel

-

-

509,076

    Total operating expenses

53,587,700

60,857,843

228,029,512

281,764,140

Operating (loss) income

(10,784,745)

9,153,056

(37,218,253)

31,668,291

Interest expense

21,647,858

11,370,603

66,643,296

46,769,965

Interest income

(8,828)

(7,077)

(32,271)

(130,007)

Other Income

-

(511,491)

(1,028,375)

(151,918)

    Total other expense, net

21,639,030

10,852,035

65,582,650

46,488,040

Net loss

$(32,423,775)

$(1,698,979)

$(102,800,903)

$(14,819,749)

Weighted average shares outstanding*:

Basic

16,849,175

15,675,180

16,328,132

15,655,443

Diluted

16,849,175

15,675,180

16,328,132

15,655,443

 

Per share amounts:

Basic net loss

$(1.92)

$(0.11)

$(6.30)

$(0.95)

Diluted net loss

$(1.92)

$(0.11)

$(6.30)

$(0.95)

* Adjusted to give effect to the 1 for 4 reverse stock split that became effective on May 22, 2012.

 

Fleet Operating Data

Three Months Ended

Twelve Months Ended

December 31,

2012

December 31,

2011

December 31,

2012

December 31,

2011

Ownership Days

4,140

4,122

16,470

15,290

Chartered-in under operating lease Days

-

182

90

2,421

Total

4,140

4,304

16,560

17,711

Available Days

4,140

4,283

16,512

17,619

Operating Days

4,114

4,272

16,389

17,514

Fleet Utilization

99.4%

99.7%

99.3%

99.4%

 

CONSOLIDATED BALANCE SHEETS

 December 31, 2012

December 31, 2011

ASSETS:

Current assets:

Cash and cash equivalents

$18,119,968

$      25,075,203

Accounts receivable, net

9,303,958

13,960,777

Prepaid expenses

3,544,810

3,969,905

Inventories

12,083,125

11,083,331

Investment

197,509

988,196

Fair value above contract value of time charters acquired

549,965

567,315

Fair value of derivative instruments

246,110

          Total current assets

43,799,335

55,890,837

Noncurrent assets:

Vessels and vessel improvements, at cost, net of accumulated

  depreciation of $314,700,681 and $239,568,767, respectively

 

1,714,307,653

 

1,789,381,046

Other fixed assets, net of accumulated amortization of $515,896 and  $324,691, respectively

447,716

605,519

Restricted cash

276,056

670,418

Deferred drydock costs

2,132,379

3,303,363

Deferred financing costs

25,095,469

11,766,779

Fair value above contract value of time charters acquired

2,491,530

3,041,496

Other assets

594,012

2,597,270

         Total noncurrent assets

1,745,344,815

1,811,365,891

Total assets

$1,789,144,150

$1,867,256,728

LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$10,235,007

$10,642,831

Accrued interest

2,430,751

2,815,665

Other accrued liabilities

14,330,141

11,822,582

Current portion of long-term debt

32,094,006

Deferred revenue and fair value below contract value of time charters acquired

3,237,694

5,966,698

Unearned charter hire revenue

3,755,166

5,779,928

         Total current liabilities

33,988,759

69,121,710

Noncurrent liabilities:

Long-term debt

1,129,478,741

1,097,384,735

Payment-in-kind loans

15,387,468

Deferred revenue and fair value below contract value of time charters acquired

13,850,772

17,088,464

Fair value of derivative instruments

2,243,833

9,486,116

         Total noncurrent liabilities

1,160,960,814

1,123,959,315

Total liabilities

1,194,949,573

1,193,081,025

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, 16,638,092 and 15,750,796* shares issued  and outstanding, respectively

 

166,378

 

157,508

Additional paid‑in capital

762,313,030

745,945,694

Retained earnings (net of dividends declared of $262,118,388 as of December 31, 2012 and December 31, 2011, respectively)

(165,275,389)

(62,474,486)

Accumulated other comprehensive loss

(3,009,442)

(9,453,013)

         Total stockholders' equity

594,194,577

674,175,703

Total liabilities and stockholders' equity

$1,789,144,150

$1,867,256,728

* Adjusted to give effect to the 1 for 4 reverse stock split that became effective on May 22, 2012.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

2012

2011

2010

Cash flows from operating activities:

Net income (loss)

$

(102,800,903)

$

(14,819,749)

$

26,844,650

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Items included in net income not affecting cash flows:

Depreciation and amortization

75,323,119

69,887,121

59,503,895

Amortization of deferred drydocking costs

2,265,309

3,196,984

3,441,583

Amortization of deferred financing costs

6,542,727

4,172,604

3,202,455

Amortization of fair value (below) above contract value of time charter acquired

(4,770,214)

(5,088,268)

(4,754,407)

Loss (gain) on sale of vessel

509,076

(291,011)

Payment-in-kind interest on loans

15,387,468

Unrealized (gain) loss on derivatives, net

246,110

(373,868)

127,758

Allowance for accounts receivable

5,351,609

1,811,320

Non-cash compensation expense

9,373,778

8,907,089

14,741,813

Drydocking expenditures

(1,094,325)

(2,809,406)

(2,827,534)

Changes in operating assets and liabilities:

Accounts receivable

(694,790)

(1,405,602)

(6,923,045)

Other assets

2,003,258

(2,527,269)

(70,001)

Prepaid expenses

425,095

(510,184)

1,529,725

Inventories

(999,794)

(7,893,279)

(3,190,052)

Accounts payable

(407,824)

4,553,558

3,799,940)

Accrued interest

(384,914)

(4,526,690)

(4,211,361)

Accrued expenses

1,666,181

5,972,108

2,022,756

Deferred revenue

(629,167)

(448,024)

159,467

Unearned charter hire revenue

(2,024,762)

(311,404)

1,233,199

Net cash provided by operating activities

4,777,961

58,296,117

94,339,830

Cash flows from investing activities:

Vessels and vessel improvements and Advances for vessel construction

(58,521)

(179,105,635)

(301,795,862)

Purchase of other fixed assets

(33,402)

(356,631)

(255,713)

Proceeds from sale of vessel

22,511,226

21,055,784

Investment

(8,025)

(955,093)

Changes in restricted cash

394,362

119,923

Net cash provided by (used in) investing activities

294,414

(157,786,210)

(280,995,791)

Cash flows from financing activities:

Bank borrowings

251,183,596

Repayment of debt

(21,875,735)

Changes in restricted cash

19,000,000

(6,014,285)

Deferred financing costs

(11,788,295)

Cash used to settle net share equity awards

(239,315)

(1,680,649)

(736,443)

Net cash provided by (used in) financing activities

(12,027,610)

(4,556,384)

244,432,868

Net increase/(decrease) in Cash

(6,955,235)

(104,046,477)

57,776,907

Cash at beginning of period

25,075,203

129,121,680

71,344,773

Cash at end of period

$

18,119,968

$

25,075,203

$

129,121,680

Supplemental cash flow information:

Cash paid during the period for Interest (including capitalized interest and commitment fees of  $209,883, $3,200,486 and $13,725,858 in 2012, 2011 and 2010, respectively)

$

45,098,012

$

48,498,289

$

57,480,100

 

The following table represents certain information about our revenue earning charters on our operating fleet as of December 31, 2012:

 

Vessel

Year

Built

 

Dwt

 

Charter Expiration (1)

Daily

Charter Hire Rate

Avocet

2010

53,462

Jan 2013

Voyage(2)

Bittern

2009

57,809

Jan 2013

$10,000(2)

Canary

2009

57,809

Jan 2013

$13,000(2)

Cardinal

2004

55,362

Jan 2013

$9,750 (2)

Condor

2001

50,296

Jan 2013

Voyage

Crane

2010

57,809

Jan 2013

$8,000

Crested Eagle

2009

55,989

Feb 2013 to May 2013

$11,000

Crowned Eagle

2008

55,940

Spot(2)

Egret Bulker

2010

57,809

Jan 2013

$13,000(2)

Falcon

2001

50,296

Jan 2013

$8,000(2)

Gannet Bulker

2010

57,809

Jan 2013

$17,650 (with 50%

profit share over $20,000)

Golden Eagle

2010

55,989

Jan 2013 to Feb 2013

$7,250

Goldeneye

2002

52,421

Feb 2013 to May 2013

Index(3)

Grebe Bulker

2010

57,809

Feb 2013 to Jun 2013

$17,650 (with 50%

profit share over $20,000)

Harrier

2001

50,296

Jan 2013

$7,250(2)

Hawk I

2001

50,296

Jan 2013

$6,500(2)

Ibis Bulker

2010

57,775

Mar 2013 to Jul 2013

$17,650 (with 50%

profit share over $20,000)

Imperial Eagle

2010

55,989

Jan 2013 to Feb 2013

$8,250

Jaeger

2004

52,248

Spot

Jay(2)

2010

57,802

Jan 2013

Voyage

Kestrel I

2004

50,326

Mar 2013 to May 2013

$9,500

Kingfisher

2010

57,776

Jan 2013 to Mar 2013

$8,900

Kite

1997

47,195

Spot(2)

Kittiwake

2002

53,146

Jan 2013

$10,500(2)

Martin

2010

57,809

Jan 2013

$8,000

Merlin

2001

50,296

Jan 2013

$8,500(2)

Nighthawk

2011

57,809

Feb 2013

Voyage(2)

Oriole

2011

57,809

Jan 2013

$10,250(2)

Osprey I

2002

50,206

Apr 2013 to Aug 2013

$8,000(2)

Owl

2011

57,809

Spot(2)

Peregrine

2001

50,913

Jun 2013 to Sep 2013

$8,250(2)

Petrel Bulker

2011

57,809

Jul 2014-Nov 2014

$17,650(4) (with 50%

profit share over $20,000)

Puffin Bulker

2011

57,809

May 2014-Sep 2014

$17,650(4) (with 50%

profit share over $20,000)

Redwing

2007

53,411

Jan 2013

$7,500(2)

Roadrunner Bulker

2011

57,809

Aug 2014-Dec 2014

$17,650(4) (with 50%

profit share over $20,000)

Sandpiper Bulker

2011

57,809

Jul 2014-Nov 2014

$17,650(4) (with 50%

profit share over $20,000)

Shrike

2003

53,343

Jan 2013

$11,300(2)

Skua

2003

53,350

Jan 2013

$10,000(2)

Sparrow

2000

48,225

Mar 2013 to May 2013

$7,500(2)

Stellar Eagle

2009

55,989

Mar 2013 to Jun 2013

Index(3)

Tern

2003

50,200

Jan 2013

$8,000(2)

Thrasher

2010

53,360

Spot(2)

Thrush

2011

53,297

Jan 2013

$12,300(2)

Woodstar

2008

53,390

Jan 2013

Voyage

Wren

2008

53,349

Jan 2013

$6,250(2)

(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 0.625% to 5.00%, to third party ship brokers.

(2) Upon conclusion of the previous charter the vessel will commence a short term charter for up to six months.

(3) Index, an average of the trailing Baltic Supramax Index.

(4) The charterer has an option to extend the charter by 2 periods of 11 to 13 months each.

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.

Chartered-in under operating lease days: The Company defines chartered-in under operating lease days as the aggregate number of days in a period during which the Company chartered-in vessels.

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.

Fleet utilization:  The Company calculates fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at very high utilization rates.

Conference Call Information

Members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET on Tuesday, April 2nd to discuss the results.

To participate in the teleconference, investors and analysts are invited to call 877-703-6102 in the U.S., or 857-244-7301 outside of the U.S., and reference participant code 91106673. 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 April 9th, 2013. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 36113886.

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

 

SOURCE Eagle Bulk Shipping Inc.



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