Eagle Bulk Shipping Inc. Reports Fourth Quarter and Full Year 2016 Results

"Looking ahead, we are confident that we have the team, the strategic approach and the resources that should, along with improving market conditions, - deliver improved top and bottom line performance."

Results of Operations for the three-month periods ended December 31, 2016 and 2015

For the three months ended December 31, 2016, the Company reported a net loss of $142.4 million, or $2.96 per share, based on a weighted average of 48,106,827 diluted shares outstanding. In the comparable quarter of 2015, the Company reported net loss of $79.7 million or $42.37 per share, based on a weighted average of 1,881,968 diluted shares outstanding. Earnings per share for the fourth quarter of 2015 was retrospectively adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016.

The net loss excluding vessel impairment, for the fourth quarter of 2016 was $19.5 million compared to $28.8 million for the fourth quarter of 2015. The $9.3 million improvement is mainly due to increased charter rates in the fourth quarter of 2016. 

Net revenues in the quarter ended December 31, 2016 were $41.8 million compared with $25.7 million recorded in the comparable quarter in 2015. The increase in revenue is primarily attributable to an increased number of freight voyages, higher charter rates in the fourth quarter of 2016 as well as increased available days due to chartered in vessels.

Voyage expenses for the quarter ended December 31, 2016 were $14.2 million compared with $10.3 million for the quarter ended December 31, 2015. Voyage expenses have primarily increased due to an increase in bunker prices as well as an increased number of freight voyages.

Vessel operating expenses for the quarter ended December 31, 2016 were $17.2 million, which represents a decrease of $6.0 million compared with $23.2 million for the quarter ended December 31, 2015. The lower vessel expenses are attributable to the efficiencies achieved through in-house technical management of vessels as well as sale of the MV Falcon, MV Harrier, MV Peregrine and MV Kittiwake during 2016 offset by the purchase of the MV Stamford Eagle in the fourth quarter of 2016.

The charter hire expenses for the quarter ended December 31, 2016 were $5.9 million compared to $0.4 million for the year ended December 31, 2015. The increase in charter hire expense in the fourth quarter of 2016 compared with the fourth quarter of 2015 was principally due to an increase in short term chartered in vessels. The total charter in days for the quarter ended December 31, 2016 were 749 compared to 109 for the quarter ended December 31, 2015.

Results of Operations for the years ended December 31, 2016 and 2015

For the year ended December 31, 2016 the Company reported a net loss of $223.5 million or $10.87 per share, based on a weighted average of 20,565,652 diluted shares outstanding. In the comparable period of 2015, the Company reported net loss of $148.3 million or $78.88 per share, based on a weighted average of 1,880,116 diluted shares outstanding. Earnings per share for 2015 was retrospectively adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016

Net revenues for the year ended December 31, 2016 were $124.5 million, which were 20% higher than net revenues for the year ended December 31, 2015, primarily due to the increase in the number of freight voyages performed and an increase in available days. The charter rates year-on-year have remained flat. The increase in available days was due to the charter-in of vessels and the delivery of the MV Stamford Eagle in the fourth quarter of 2016 offset by the sale of four vessels during 2016 and the sale of one vessel in 2015. Our fleet utilization increased from 97.6% during 2015 to 98.7% during 2016.

Voyage expenses for the year ended December 31, 2016 were $42.1 million compared with $23.8 million for the year ended December 31, 2015. Voyage expenses have primarily increased due to an increase in bunker prices as well as an increased number of freight voyages performed in the current year compared to the prior year.

Vessel operating expenses for the year ended December 31, 2016 were $74.0 million, which represents a decrease of $12.3 million compared with $86.3 million for the year ended December 31, 2015. The lower vessel expenses are attributable to the efficiencies achieved through in-house technical management of vessels as well as the sale of the MV Falcon, MV Harrier, MV Peregrine and MV Kittiwake during 2016, and the sale of the MV Kite during 2015 offset by the purchase of the MV Stamford Eagle in the fourth quarter of 2016.

The charter hire expenses for the year ended December 31, 2016 were $12.8 million compared to $4.1 million for the year ended December 31, 2015. The increase in charter hire expense in 2016 compared with 2015 was principally the result of the delivery of a 63,000 dwt new building vessel in May 2016 for a period of nine to fourteen months and a 61,000 dwt new building vessel that was delivered in July 2016 for a period of eleven to thirteen months. In addition, the Company chartered in vessels on a short-term basis as needed. The total charter in days for the year ended December 31, 2016 were 1,494 compared to 382 for the year ended December 31, 2015.

Depreciation and amortization expenses for the year ended December 31, 2016 were $38.9 million, which represents a decrease of $4.1 million compared with $43.0 million for the year ended December 31, 2015. The decrease was substantially due to the operation of a smaller fleet resulting from the sale of four vessels in 2016, impairment of six vessels in 2015 reducing the depreciation base and the sale of one vessel in 2015 offset by an increase in drydock amortization and the addition of the Stamford Eagle in the fourth quarter of 2016, the MV Stamford Eagle. Total depreciation and amortization expenses for the year ended December 31, 2016 includes $35.6 million of depreciation and $3.3 million of amortization of deferred drydocking costs. Total depreciation and amortization expense for the year ended December 31, 2015 includes $41.0 million of depreciation and $2.0 million of amortization of deferred drydocking costs.

General and administrative expenses for the years ended December 31, 2016 and 2015 were $22.9 million and $25.5 million, respectively. The decrease in General and administrative expenses in 2016 was primarily attributable to lower office lease expense, professional fees, non-cash compensation expenses and third party technical manager fees offset by lower third party management fees received due to the cancellation of the management agreement with Delphin Shipping LLC. General and administrative expenses include non-cash compensation charges of $2.2 million and $4.0 million, respectively, for the years ended December 31, 2016 and 2015

Liquidity and Capital Resources

Net cash used by operating activities during the year ended December 31, 2016 was $45.4 million, compared with net cash used by operating activities of $43.8 million during the year ended December 31, 2015.

Net cash used in investing activities during the year ended December 31, 2016 was $9.3 million, compared with net cash provided by investing activities of $10.3 million, during the corresponding year ended December 31, 2015. The $9.3 million cash in used by investing activities in 2016 is mainly attributable to the purchase of the MV Stamford Eagle and the purchase deposit for the Singapore Eagle offset by the sale of four vessels in 2016. The $10.3 million in cash provided by investing activities is comprised of the sale of the Korea Line Corporation investment and the sale of one vessel in 2015.

Net cash provided by financing activities during the year ended December 31, 2016 was $106.3 million compared with $18.5 million during the corresponding year ended December 31, 2015. The increase in cash from financing activities is due to net proceeds from the private common stock placement closed on August 10, 2016 of $85.7 million, $60.0 million received from our Second Lien Loan facility and $15.2 million from the revolver under the First Lien Facility offset by repayment of $21.3 million of our term loan and $30.2 million of our revolver each under the First Lien Facility. The Company also paid $3.1 million in deferred financing costs.

As of December 31, 2016, our cash balance was $76.5 million, compared to a cash balance of $24.9 million at December 31, 2015.

At December 31, 2016, the Company's debt consisted of $209.1 million in term loans, net of $4.7 million debt discount and debt issuance costs under the First Lien Facility and $67.3 million under the Second Lien Facility net of $15.7 million debt discount and debt issuance costs.

As of December 31, 2016, our total availability in the revolving credit facility under the First Lien Facility was $25.0 million.

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.

On September 30, 2016, the Company, through a newly formed subsidiary, Eagle Bulk Shipco LLC ("Eagle Shipco") signed a memorandum of agreement to acquire a 2016 NACKS-built Ultramax 61,000 dwt for $18.85 million. The Company took delivery of the vessel, the MV Stamford Eagle in the fourth quarter of 2016.             

On November 14, 2016, Eagle Shipco signed a memorandum of agreement to acquire a 2017 built 64,000 dwt SDARI-64 Ultramax dry bulk vessel constructed at Chengxi Shipyard Co., Ltd for $17.9 million. The Company paid a $1.9 million advance towards the purchase as of December 31, 2016. The Company took the delivery of the vessel Singapore Eagle in the first quarter of 2017.

In addition to acquisitions that we may undertake in future periods, the other major capital expenditures include funding the Company's program of regularly scheduled dry-docking 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. The Company anticipates that vessels are to be dry docked every five years for vessels younger than 15 years and every two and a half years for vessels older than 15 years. Accordingly, these expenses are deferred and amortized over that period until the next anticipated dry-docking. 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 dry-docking for those vessels.  Nine vessels completed dry-docking in the year ended December 31, 2016 and we incurred $3.7 million in dry-docking related costs. Nineteen vessels completed dry-docking in the year ended December 31, 2015 and we incurred $11.1 million in dry-docking related costs.

The following table represents certain information about the estimated costs for anticipated vessel dry dockings in the next four quarters, along with the anticipated off-hire days:

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					Year Ended
		December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Revenues, net of commissions	$	41,835,941		$	25,740,856		$	124,492,844		$	103,856,876
Voyage expenses		14,191,559			10,291,759			42,093,714			23,832,457
Vessel expenses		17,233,582			23,205,007			74,016,763			86,329,060
Charter hire expenses		5,866,255			428,021			12,845,468			4,125,766
Depreciation and amortization		9,979,264			10,261,067			38,884,322 Werbung Mehr Nachrichten zur Eagle Bulk Shipping Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:23 - ARIVA.DE Redaktion Munich Re-Aktie mit Kursverlusten (426,50 €) 02:00 - PR Newswire International Business Machines Corp - 1st Quarter Results 02:00 - PR Newswire Vesuvius Plc - Transaction in Own Shares SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59