Eagle Bulk Shipping Inc. Reports Third Quarter 2013 Results

NEW YORK, Nov. 13, 2013 /PRNewswire/ -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) today announced its results for the third quarter ended September 30, 2013. 

For the Third Quarter:

  • Net reported loss of $37.6 million or $2.22 per share (based on a weighted average of 16,986,395 diluted shares outstanding for the quarter), compared with net loss of $29.8 million, or $1.77 per share, for the comparable quarter of 2012.
  • Net revenues of $39.0 million, compared to $46.9 million for the comparable quarter in 2012. Gross time charter and freight revenues of $40.7 million, compared with $48.9 million for the comparable quarter of 2012.
  • EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $3.0 million for the third quarter of 2013, compared with $12.5 million for the third quarter of 2012.
  • Fleet utilization rate of 99.7%.

Sophocles N. Zoullas, Chairman and CEO, commented, "During the third quarter the dry bulk market remained in a cyclical trough characterized by steady demand offset by excess tonnage capacity.  While we see signs that this imbalance is improving over time, Eagle Bulk's focus remains unchanged: operational excellence, a flexible and revenue-maximizing chartering strategy and a diversified cargo mix that promotes stability through a range of market conditions."

Results of Operations for the three-month period ended September 30, 2013 and 2012

For the third quarter of 2013, the Company reported net loss of $37,630,051 or $2.22 per share, based on a weighted average of 16,986,395 diluted shares outstanding. In the comparable third quarter of 2012, the Company reported net loss of $29,837,360 or $1.77 per share, based on a weighted average of 16,821,024 diluted shares outstanding.

Gross time and voyage charter revenues in the quarter ended September 30, 2013 were $40,694,731 compared with $48,895,357 recorded in the comparable quarter in 2012. The decrease in revenue is attributable to lower time charter rates earned by the fleet. Gross revenues recorded in the quarter ended September 30, 2013 and 2012 include an amount of $0 and $1,139,972, respectively, relating to the non-cash amortization of fair value below contract value time charters acquired. Brokerage commissions incurred on revenues earned in the quarter ended September 30, 2013 and 2012 were $1,716,313 and $2,040,686, respectively. Net revenues during the quarter ended September 30, 2013 and 2012 were $38,978,418 and $46,854,671, respectively.

Total operating expenses for the quarter ended September 30, 2013 were $48,235,359 compared with $54,718,097 recorded in the third quarter of 2012. The Company operated 45 vessels in both third quarters of 2013 and 2012. The decrease in operating expenses resulted partly from the gain realized on time charter termination of $3,564,771 and partly from lower professional fee costs and compensation costs resulting in lower general and administrative expenses. In addition, there was a reduction in charter hire expenses as none were incurred during the three-month period ended September 30, 2013.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, was $3,028,674 for the third quarter of 2013, compared with $12,523,686 for the third quarter of 2012. (Please see below for a reconciliation of EBITDA to loss).

Other

The KLC stock held by the Company is designated as Available for sale and is reported at fair value, with unrealized gains and losses recorded in shareholders' equity as a component of accumulated other comprehensive income. On September 30, 2013, the fair value of the KLC stock held by the Company was $22.1 million. The change in the fair value of our KLC investment was considered as other than temporary, and therefore the Company recorded a non-cash loss of $7.3 million in Other expense in the third quarter of 2013.

Results of Operations for the nine-month period ended September 30, 2013 and 2012

For the nine months ended September 30, 2013, the Company reported net loss of $39,294,848 or $2.32 per share, based on a weighted average of 16,973,813 diluted shares outstanding. In the comparable period of 2012, the Company reported net loss of $70,377,128 or $4.36 per share, based on a weighted average of 16,153,184 diluted shares outstanding.

Gross time and voyage charter revenues in the nine-month period ended September 30, 2013 were $160,156,275 compared with $154,255,768 recorded in the comparable period in 2012. The increase in revenue is attributable to the settlement agreement with KLC, pursuant to which the Company recognized revenue of approximately $32.8 million, offset by lower time charter rates earned by the fleet. Gross revenues recorded in the period ended September 30, 2013 and 2012, include an amount of $10,280,559 and $3,574,012, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired of which $10,106,247 relates to the KLC settlement agreement in the quarter ended March 31, 2013. Brokerage commissions incurred on revenues earned in the period ended September 30, 2013 and 2012 were $4,715,359 and $6,247,464, respectively. Net revenues during the period ended September 30, 2013 and 2012, were $155,440,916 and $148,008,304, respectively.

Total operating expenses were $122,236,686 in the nine-month period ended September 30, 2013 compared to $174,441,812 recorded in the same period of 2012. The Company operated 45 vessels in both nine-month periods of 2013 and 2012. The decrease in operating expenses resulted primarily from a gain realized from the settlement agreement with KLC of $32,526,047. The decrease in general and administrative expenses resulted primarily from a reduction in allowance for accounts receivable, professional fee costs and compensation expenses. The decrease in vessel expenses in the nine-month period is attributable to efficiencies achieved through performing in-house technical management by transferring nine additional vessels from one of our unaffiliated third party managers. In addition, there was a reduction in charter hire expenses as none were incurred during the nine-month period ended September 30, 2013.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, increased to $74,173,569 for the nine months ended September 30, 2013 from $36,307,368 for the same period in 2012. (Please see below for a reconciliation of EBITDA to net loss).

Liquidity and Capital Resources

Net cash used in operating activities during the nine-month period ended September 30, 2013 was $342,990, compared with net cash provided by operating activities of $2,644,520 during the corresponding nine-month period ended September 30, 2012. The decrease was primarily due to lower rates on charter renewals offset by reductions in general and administrative expenses.

Net cash provided by investing activities during the nine-month period ended September 30, 2013, was $2,275,326, compared with $287,344 during the corresponding nine-month period ended September 30, 2012. The increase was primarily due to proceeds from sale of investment.

Net cash used in financing activities during the nine-month period ended September 30, 2013 and 2012 was $126,535 and $9,447,930, respectively.  The financing activity during the nine-month period ended September 30, 2012, related primarily to the additional expenses incurred related to the amendment and restatement of the Company's credit agreement.

As of September 30, 2013, our cash balance was $19,925,769, compared to a cash balance of $18,119,968 at December 31, 2012.  As of September 30, 2013, our Restricted Cash balance relating to our office lease was $66,243.

At September 30, 2013, the Company's debt consisted of $1,129,478,741 in term loans and $37,112,217 paid-in-kind loans compared with the Company's debt at December 31, 2012, which consisted of $1,129,478,741 in term loans and $15,387,468 paid-in-kind loans.

We anticipate that our current financial resources, together with cash generated from operations will be sufficient to fund the operations of our fleet, including our working capital, throughout 2013. The general decline in the dry bulk carrier charter market has resulted in lower charter rates for vessels in the dry bulk market. However, if the current charter hire rates do not improve significantly for the remainder of 2013 and in the first quarter of 2014, the Company will not be in compliance with the maximum leverage ratio and the minimum interest coverage ratio covenants under the Fourth Amended and Restated Credit Facility at or after March 31, 2014; and, if charter hire rates deteriorate  from current levels or if we are unable to achieve our cost cutting measures or if we realize additional losses on our Korea Lines Corporation available for sale investment, the Company will not be in compliance with the maximum leverage ratio covenant in the fourth quarter of 2013. Although there is no assurance that we will be successful in doing so, we are evaluating asset sales, equity and debt financing alternatives that could raise incremental cash.

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 requires 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

Nine Months Ended


September 30,

2013

September 30,

2012

September 30,

2013

September 30,

2012

Net Loss

 

$

 

(37,630,051)

$

(29,837,360)

 

$

 

(39,294,848)

 

$

(70,377,128)

Interest Expense


20,729,626


21,981,186


61,957,771


44,995,438

Depreciation and Amortization


19,366,495


19,389,042


57,463,027


58,250,356

Amortization of fair value (below)

above market of time charter acquired


 

 

-


(1,139,972)


 

 

(10,280,559)


(3,574,012)

EBITDA


2,466,070


10,392,896


69,845,391


29,294,654

Adjustments for Exceptional Items









Non-cash Compensation Expense (1)


 

562,604


2,130,790


 

4,328,178


7,012,714

Credit Agreement EBITDA

$

3,028,674

$

$12,523,686

$

74,173,569

$

36,307,368

          (1) Stock based compensation related to stock options and 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 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. 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 amortized to expense on a straight-line basis over the period through the date of the next scheduled drydock. Two vessels drydocked in the three months ended September 30, 2013. 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)

December 31, 2013

22

$0.60 million

March 31, 2014

66

$1.80 million

June 30, 2014

66

$1.80 million

September 30, 2014

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

(UNAUDITED)



 

Three Months Ended

 

Nine Months Ended


September 30,

2013

September 30,

2012

September 30,

2013

September 30,

2012






Revenues, net of commissions

$38,978,418

$46,854,671

$155,440,916

$148,008,304






Voyage expenses

7,683,180

6,480,233

23,288,739

20,370,857

Vessel expenses

21,804,188

21,246,653

63,132,366

67,557,977

Charter hire expenses

-

1,104,571

-

1,711,144

Depreciation and amortization

19,366,495

19,389,042

57,463,027

58,250,356

General and administrative expenses

2,946,267

6,497,598

10,878,601

26,551,478

Gain on time charter agreement

   termination

 

(3,564,771)

 

 

(32,526,047)

 






    Total operating expenses

48,235,359

54,718,097

122,236,686

174,441,812











Operating income (loss)

(9,256,941)

(7,863,426)

33,204,230

(26,433,508)






Interest expense

20,729,626

21,981,186

61,957,771

44,995,438

Interest income

(3,321)

(7,252)

(71,775)

(23,443)






Other (Income) expense

7,646,805

-

10,613,082

(1,028,375)

    Total other expense, net

28,373,110

21,973,934

72,499,078

43,943,620






Net loss

$(37,630,051)

$(29,837,360)

$(39,294,848)

$(70,377,128)






 

Weighted average shares outstanding:










Basic

16,986,395

16,821,024

16,973,813

16,153,184

Diluted

16,986,395

16,821,024

16,973,813

16,153,184

 

Per share amounts:










Basic net loss

$(2.22)

$(1.77)

$(2.32)

$(4.36)

Diluted net loss

$(2.22)

$(1.77)

$(2.32)

$(4.36)











 

     Fleet Data



Three Months Ended

Nine Months Ended


September 30,

2013

September 30,

2012

September 30,

2013

September 30,

2012

Ownership Days

4,140

4,140

12,285

12,330

Chartered-in under operating lease Days

-

58

-

90

Available Days

4,109

4,198

12,193

12,372

Operating Days

4,096

4,172

12,133

12,275

Fleet Utilization

99.7%

99.4%

99.5%

99.2%

 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



September 30,

2013


December 31,

2012

ASSETS:




Current assets:




Cash and cash equivalents

$19,925,769


$18,119,968

Accounts receivable, net

11,144,155


9,303,958

Prepaid expenses

3,328,383


3,544,810

Inventories

12,111,008


12,083,125

Investment

22,110,249


197,509

Other assets and Fair value above contract value of time charters acquired

3,864,251


549,965

          Total current assets

72,483,815


43,799,335

Noncurrent assets:




Vessels and vessel improvements, at cost, net of accumulated

  depreciation of $370,705,330  and $314,700,681, respectively

1,658,395,104


 

1,714,307,653

Other fixed assets, net of accumulated amortization of $640,374 and  $515,896, respectively

364,868


447,716

Restricted cash

66,243


276,056

Deferred drydock costs

3,177,196


2,132,379

Deferred financing costs

18,840,341


25,095,469

Fair value above contract value of time charters acquired

-


2,491,530

Other assets

861,988


594,012

         Total noncurrent assets

1,681,705,740


1,745,344,815





Total assets

$1,754,189,555


$1,789,144,150





LIABILITIES & STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$10,937,962


$10,235,007

Accrued interest

268,430


2,430,751

Other accrued liabilities

9,849,461


14,330,141

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

-


3,237,694

Unearned charter hire revenue

4,383,930


3,755,166

Fair value of derivative instruments

-


2,243,833





         Total current liabilities

25,439,783


36,232,592

Noncurrent liabilities:




Long-term debt

1,129,478,741


1,129,478,741

Payment-in-kind loans

37,112,217


15,387,468

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

-


13,850,772





         Total noncurrent liabilities

1,166,590,958


1,158,716,981

Total liabilities

1,192,030,741


1,194,949,573

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, 16,658,417 and 16,638,092  shares

issued    

          and outstanding, respectively

166,581


 

166,378

Additional paid‑in capital

766,562,470


762,313,030

Retained earnings (net of historical dividends declared of $262,118,388)

(204,570,237)


(165,275,389)

Accumulated other comprehensive loss

-


(3,009,442)

         Total stockholders' equity

562,158,814


594,194,577

Total liabilities and stockholders' equity

$1,754,189,555


$1,789,144,150

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



Nine Months Ended


September 30,

2013


September 30,

2012

Cash flows from operating activities:




Net loss

$(39,294,848)


$(70,377,128)

Adjustments to reconcile net loss to net cash (used in) provided by operating

   activities:




Items included in net loss not affecting cash flows:




Depreciation

56,129,127


56,388,161

Amortization of deferred drydocking costs

1,333,900


1,862,195

Amortization of deferred financing costs

6,271,128


4,428,572

Amortization of fair value below contract value of time charter acquired

(10,280,559)


(3,574,012)

Payment-in-kind interest on debt

21,724,749


8,101,953

Unrealized gain from forward freight agreements, net

-


246,110

Investment

(4,925,952)


-

Realized loss from investment

10,613,082


-

Gain on time charter agreement termination

(29,033,503)


-

Allowance for accounts receivable

-


5,351,609

Non‑cash compensation expense

4,328,178


7,012,714

Drydocking expenditures

(2,378,717)


(1,085,541)

Changes in operating assets and liabilities:




Accounts receivable

(1,840,197)


(5,185,340)

Other assets

(4,132,227)


2,089,633

Prepaid expenses

216,427


708,671

Inventories

(27,883)


269,672

Accounts payable

702,955


(1,169,678)

Accrued interest

(2,162,321)


(861,935)

Accrued expenses

(4,448,680)


505,953

Deferred revenue

(3,766,413)


(471,017)

Unearned revenue

628,764


(1,596,072)





Net cash provided by (used in) operating activities

(342,990)


2,644,520

  Cash flows from investing activities:




Proceeds from sale of investment

2,199,243


-

Vessels improvements

(92,100)


(58,521)

Purchase of other fixed assets

(41,630)


(48,497)

Changes in restricted cash

209,813


394,362





Net cash provided by investing activities

2,275,326


287,344





Cash flows from financing activities:




Deferred financing costs

(48,000)


(9,382,792)

Cash used to settle net share equity awards

(78,535)


(65,138)





Net cash used in financing activities

(126,535)


(9,447,930)





Net increase / (decrease) in cash

1,805,801


(6,516,066)

Cash at beginning of period

18,119,968


25,075,203





Cash at end of period

$19,925,769


$18,559,137






 

We have employed all of our vessels in our operating fleet on time and voyage charters. The following table represents certain information about our revenue earning charters with respect to our operating fleet as of September 30, 2013:

Vessel


Year

Built



Dwt


Charter Expiration (1)



Daily Charter Hire Rate












Avocet


2010



53,462


Oct 2013


$

8,000(2)












Bittern


2009



57,809


Nov 2013 to Jan 2014


$

8,250












Canary


2009



57,809


Nov 2013 to Dec 2013


$

10,250












Cardinal


2004



55,362


Nov 2013



Voyage(2)












Condor


2001



50,296


Oct 2013


$

9,000(2)












Crane


2010



57,809


Nov 2013



Voyage (2)












Crested Eagle


2009



55,989


Nov 2013


$

7,000












Crowned Eagle


2008



55,940


Nov 2013 to Dec 2013


$

9,450












Egret Bulker 


2010



57,809


Nov 2013


$

8,750












Falcon


2001



50,296


Oct 2013


$

8,500(2)












Gannet Bulker


2010



57,809


Dec 2013 to Feb 2014


$

8,500












Golden Eagle


2010



55,989


Nov 2013 to Dec 2013


$

9,250












Goldeneye


2002



52,421


Oct 2013



Voyage (2)












Grebe Bulker


2010



57,809


Oct 2013


$

6,000(2)












Harrier


2001



50,296


Nov 2013


$

10,750(2)












Hawk I


2001



50,296


Oct 2013


$

10,000(2)












Ibis Bulker


2010



57,775


Oct 2013


$

7,750(2)












Imperial Eagle


2010



55,989


Jul 2014 to Nov 2014



Index












Jaeger


2004



52,248


Nov 2013


$

13,750(2)












Jay


2010



57,802


Nov 2013


$

8,000












Kestrel I


2004



50,326


Oct 2013


$

9,850(2)












    Kingfisher


2010



57,776


Nov 2013 to Dec 2013


$

8,800












Kite


1997



47,195


Nov 2013


$

7,500












Kittiwake


2002



53,146


Oct 2013


$

6,500(2)












Martin


2010



57,809


Oct 2013



Voyage (5)












Merlin


2001



50,296


Oct 2013


$

9,600(2)












Nighthawk


2011



57,809


Oct 2013


$

9,000(2)












Oriole


2011



57,809


Dec 2013 to Feb 2014


$

10,000












Osprey I


2002



50,206


Dec 2013


$

10,000












Owl


2011



57,809


Oct 2013


$

10,500(2)












Peregrine


2001



50,913


Nov 2013



 Voyage (2)












Petrel Bulker

 


2011

 



57,809

 


May 2014 to Sep 2014

 



$17,650(4) (with 50%

profit share over $20,000)












Puffin Bulker

 


2011

 



57,809

 


May 2014 to Sep 2014

 



$17,650(4) (with 50%

profit share over $20,000)












Redwing


2007



53,411


Nov 2013


$

6,000












Roadrunner

Bulker 


2011

 



57,809

 


Aug 2014 to Dec 2014

 



$17,650(4) (with 50%

profit share over $20,000)












Sandpiper

Bulker 


2011

 



57,809

 


Aug 2014 to Dec 2014

 



$17,650(4) (with 50%

profit share over $20,000)












Shrike


2003



53,343


Oct 2013


$

7,850(2)












Skua


2003



53,350


Dec 2013


$

8,500












Sparrow


2000



48,225


Oct 2013


$

12,000(2)












Stellar Eagle


2009



55,989


Jan 2014 to Feb 2014



Index(3)












Tern


2003



50,200


Drydocking



— (6)












Thrasher


2010



53,360


Oct 2013


$

8,300(2)












Thrush


2011



53,297


Oct 2013


$

7,000(2)












     Woodstar


2008



53,390


Oct 2013


$

5,000(2)












Wren


2008



53,349


Nov 2013


$

6,000






(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 or a spot voyage.


(3)

Index, an average of the trailing Baltic Supramax Index.


(4)

The charterer has an option to extend the charter by two periods of 11 to 13 months each.


(5)

Upon conclusion of previous charter, the vessel will be entered into Navig8 Bulk Pool for 10 to 14 months.


(6)

Upon conclusion of the drydocking the vessel will commence a short term charter for up to six months.

 

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 Thursday, November 14th 2013, to discuss the results.

To participate in the teleconference, investors and analysts are invited to call 866-515-2913 in the U.S., or 617-399-5127 outside of the U.S., and reference participant code 34484228. 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 November 21st, 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 43092392.

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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