Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended June 30, 2016

NEWPORT, R.I., Aug. 15, 2016

Second Quarter Highlights

• Net income attributable to Pangaea Logistics Solutions Ltd. was $0.1 million, compared to net income of $5.5 million in the second quarter of 2015
• Pro forma adjusted earnings per common share¹ of $0.004 for 2016 compared to pro forma adjusted earnings per common share of $0.15 in the second quarter of 2015
• Adjusted EBITDA² decreased to $4.3 million for 2016, compared with $10.3 million for the second quarter of 2015
• Cash flow from operations was $10.0 million for the six months ended June 30, 2016, compared with $12.8 million for the six months ended June 30, 2015
• At the end of the second quarter, Pangaea had $32.4 million in cash and cash equivalents
• General and administrative expenses decreased 25% to $2.9 million from $3.9 million in the second quarter of 2015.

Edward Coll, Chairman and Chief Executive Officer of Pangaea Logistics Solutions, commented, "This quarter saw us continue to use our unique business model, coupled with rigorous expense management, to remain profitable in the face of a very difficult shipping market. Despite the ongoing challenges presented by the declining growth in demand for the cargoes we carry, combined with too many ships on the water, we have maintained a healthy balance sheet and generated  positive cash flow from our operations.  This is a testament to both our strategy and our world class team."

Results for the Three Months Ended June 30, 2016 and 2015

For the three months ended June 30, 2016, the Company reported net income of $0.1 million, or $0.004 per common share compared to net income of $5.5 million, or $0.15 per common share for the same period of 2015.

Adjusted EBITDA was $4.3 million in the three months ended June 30, 2016 and $10.3 million for the three months ended June 30, 2015.  The change was primarily attributable to the continued weakness in the drybulk shipping market and to the reduction in the TCE rate attributable to the amended COA that employs three of the Company's vessels on a continuous basis. Pangaea's strategy of relying on COAs and minimizing risks associated with falling market rates by chartering vessels into our fleet only as necessary to perform under the COAs and firm contracts has continued to serve the Company well. This flexible fleet strategy reduces the risk of idle time in an environment with limited profitable fronthaul employment.

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¹ Earnings per share represents total earnings allocated to common stock divided by the weighted average number of common shares outstanding. Pro forma adjusted earnings per share represents adjusted total earnings allocated to common stock divided by the weighted average number of shares.  See Reconciliation of Adjusted EBITDA and Pro Forma Adjusted Earnings Per Share.