NEWPORT,
R.I., March 15, 2023 /PRNewswire/ -- Pangaea
Logistics Solutions Ltd. ("Pangaea" or the "Company") (NASDAQ:
PANL), a global provider of comprehensive maritime logistics
solutions, announced today its results for the three months and
year ended December 31, 2022.
FOURTH QUARTER 2022 RESULTS
(As compared to
the Fourth Quarter 2021)
- Net income of $15.5 million, or
$0.34 per diluted share, remained
unchanged y/y.
-
- Adjusted net income attributable to Pangaea Logistics Solutions
Ltd. of $14.3 million, or
$0.32 per diluted share, a decline of
43% y/y.
- Adjusted EBITDA of $26.9 million,
a decrease of 29% y/y
- Operating cash flow of $32.9
million, an increase of 73% y/y
- Time Charter Equivalent ("TCE") rates earned by Pangaea of
$20,023 per day, a premium of 41%
over the prevailing market rate
- Cash and cash equivalents of $128.4
million, an increase of $72.2
million y/y
- Ratio of net debt to trailing twelve-month Adjusted EBITDA of
1.25x
FULL YEAR 2022 RESULTS
(As compared to the
year 2021)
- Net income attributable to Pangaea Logistics Solutions Ltd. of
$79.5 million, or $1.76 per diluted share, an increase of 17%
y/y
-
- Adjusted Net Income attributable to Pangaea Logistics Solutions
Ltd. of $82.1 million, or
$1.82 per diluted share, an increase
of 29% y/y
- Adjusted EBITDA of $140.9
million, an increase of 34% y/y
- Operating cash flow of $134.8
million, an increase of 118% y/y
- Time Charter Equivalent ("TCE") rates earned by Pangaea of
$24,434 per day, a premium of 22%
over the prevailing market rate
For the fourth quarter ended December 31,
2022, Pangaea reported non-GAAP adjusted net income of
$14.3 million, or $0.32 per diluted share, on total revenue of
$127.9 million. Fourth quarter TCE
rates declined 38.5% on a year-over-year basis, while total
shipping days, which include both voyage and time charter days,
declined 29.2% to 3,681 days, when compared to the year-ago
period.
The TCE earned was $20,023 per day
for the three months ended December 31,
2022, compared to an average of $32,563 per day for the same period in 2021.
During the fourth quarter 2022, the Company's average TCE rate
exceeded the benchmark average Baltic Panamax and Supramax indices
by approximately 41%, supported by Pangaea's long-term contracts of
affreightment ("COAs"), specialized fleet, and cargo-focused
strategy.
Total Adjusted EBITDA decreased by 29% to $26.9 million in the fourth quarter due to fewer
total shipping days and lower market rates, partially offset by the
benefit of more owned ship days from a larger owned fleet and a
decline in charter-hire expenses.
Adjusted EBITDA margin increased by 480 basis points to 21.0% in
the fourth quarter 2022, when compared to the year-ago period,
supported by sustained execution on the Company's chartered-in
strategy amid lower market rates.
As of December 31, 2022, the
Company had $128.4 million in
cash and equivalents. Total debt, including lease finance
obligations was $303.9 million
at year-end 2022. At the end of the fourth quarter 2022, the ratio
of net debt to trailing twelve-month adjusted EBITDA was 1.25x,
versus 2.43x in the prior-year period. During the three months
ended December 31, 2022, the Company
paid $4.4 million of cash dividends
and repaid $7.2 million of long-term
debt and other long-term liabilities.
Subsequent to the end of the fourth quarter, the Company entered
into an agreement to sell the m/v Bulk Newport for $9.2 million. The vessel was delivered to the
buyer on March 3, 2023.
As previously announced on Feb 15,
2023, the Company's Board of Directors declared a quarterly
cash dividend of $0.10 per common
share, to be paid on March 15, 2023,
to all shareholders of record as of March 1,
2023.
STRATEGIC UPDATE
Pangaea remains committed to developing a leading dry bulk
logistics and transportation services company of scale, providing
its customers with specialized shipping and supply chain and
logistics offerings in commodity and niche markets, which drive
premium returns measured in time charter equivalent per
day.
Leverage integrated shipping and logistics model.
In addition to operating the largest high ice class dry bulk fleet
of panamax and post-panamax vessels globally, Pangaea also performs
stevedoring services, together with port and terminal operations
capabilities. During the fourth quarter, the Company continued to
expand its logistics offering to new and existing customers;
including participation in various infrastructure projects in the
US Gulf and US East Coast; providing freight and stevedoring
services, handling cement, construction aggregate, and pig iron for
new and existing clients. In addition, we executed a specialized
project in our Sabine Pass, Texas
Terminal, providing heavy lift stevedoring services, handling
one of the world's largest capacity cranes.
Continue to drive strong fleet utilization. In the
fourth quarter Pangaea's twenty-five owned vessels were fully
utilized and supplemented with an average of fifteen chartered-in
vessels to support cargo and COA commitments. Utilizing its nimble
fleet approach, the Company reduced its exposure to the market by
redelivering chartered-in vessels and reducing its average
chartered-in fleet from 26 vessels in Q3 22 to 15 vessels in Q4
22.
Continue to upgrade fleet, while divesting older, non-core
assets. In January of 2023, the Company entered into an
agreement to sell the Bulk Newport, a 2003 Shin Kurushima Toyohashi
shipyard-built 52,587 dwt dry bulk vessel, for $9.2 million. With this sale, Pangaea now owns 24
ships, while continuing to operate a total fleet of approximately
40-60 vessels in worldwide trades. The sale of the Bulk Newport is
consistent with the Company's strategy of maintaining an average
fleet age of less than 10 years, amid tightening global emission
regulations. Looking ahead, the Company intends to
opportunistically manage its fleet with the purpose of maximizing
TCE rates, while continuing to support client requirements on an
on-demand basis.
MANAGEMENT COMMENTARY
"Our record full-year operating cash flow and
profitability demonstrate the durability of our vertically
integrated shipping-logistics model in a volatile shipping market
environment," stated Mark
Filanowski, Chief Executive Officer of Pangaea Logistics
Solutions. "During the first half of the year, we capitalized on a
strong demand and rate environment by fully utilizing our fleet,
including our four, new-build 1A Ice-Class Post-Panamax vessels,
together with the five vessels purchased in the prior
24-months. While market conditions deteriorated during the
latter half of 2022 and into the first quarter 2023, our long-term
transportation contracts and flexible, chartered-in fleet
positioned us to perform well in excess of lower spot market
levels."
"During the fourth quarter, our chartering strategy drove
positive arbitrage in a falling-rate market," continued Filanowski.
"While the TCE earned declined 38.5% on a year-over-year basis in
the fourth quarter, our average TCE rate exceeded the average
benchmark by 41% in the period. Our premium rate model, which
leverages the integrated benefits of specialty cargo carriage and
on-shore supply chain solutions, contributed to an Adjusted EBITDA
margin expansion in the fourth quarter, when compared to the
prior-year period. First quarter 2023 to-date, our TCE booked for
3,970 ship days is $15,065 per
day."
"Our cargo-centric business plan delivered significant value
creation for shareholders in 2022," noted Filanowski. "We generated
nearly $100 million in free cash
flow, positioning us to pursue a balanced, self-funded approach
toward organic and inorganic growth investments, together with a
robust and consistent dividend program. This year, our
capital allocation priorities will include fleet renewal and
careful expansion; widening our logistics platform,
particularly as it relates to complementary, immediately
accretive onshore opportunities; further debt reduction; and
continued support of our quarterly cash dividend which on an
annualized basis results in more than $18
million in distributions to shareholders."
"In 2023, we anticipate that a post-pandemic reopening in
China and stable economic activity
in the West should provide incremental support for global dry bulk
demand," continued Filanowski. "On the supply-side, global dry
bulk shipping capacity is constrained for the foreseeable
future, given the combined impact of low new-build activity and the
recent introduction of new, IMO-mandated emissions-reduction
regulations that will impact older, less efficient fleets and will
further restrict newbuilding orders. In recent years, we have
invested heavily in upgrading and refreshing our fleet with younger
vessels, ensuring we are well positioned to capitalize on the IMO
transition."
FOURTH QUARTER 2022 CONFERENCE CALL
The Company's management team will host a conference call to
discuss the Company's financial results on Thursday, March 16, 2023, at 8:30 a.m. ET. Accompanying presentation materials
will be available with the Company's Securities and Exchange
Commission Filing, and in the Investor Relations section of the
Company's website at https://www.pangaeals.com/investors/.
To participate in the live teleconference:
Domestic
Live:
1-800-225-9448
International Live:
1-203-518-9708
Conference
ID:
PANLQ422
To listen to a replay of the teleconference, which will be
available through March 23, 2023:
Domestic
Replay:
1-800-283-9429
International Replay: 1-402-220-0871
Pangaea Logistics
Solutions Ltd. Consolidated Statements of
Operations
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Voyage
revenue
|
$
117,339,854
|
|
$ 202,503,619
|
|
$
640,033,668
|
|
$
614,482,101
|
Charter
revenue
|
10,583,556
|
|
32,054,642
|
|
59,673,238
|
|
103,622,287
|
Total
revenue
|
127,923,410
|
|
234,558,261
|
|
699,706,906
|
|
718,104,388
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Voyage
expense
|
54,214,070
|
|
65,265,750
|
|
262,088,555
|
|
219,623,127
|
Charter hire
expense
|
28,156,765
|
|
114,992,408
|
|
222,332,197
|
|
334,952,823
|
Vessel operating
expenses
|
15,380,167
|
|
12,693,076
|
|
56,859,340
|
|
42,715,496
|
General and
administrative
|
3,907,905
|
|
4,289,733
|
|
20,103,346
|
|
18,966,488
|
Depreciation and
amortization
|
7,529,397
|
|
6,522,946
|
|
29,489,810
|
|
22,974,249
|
Loss on impairment of
vessels
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on
sale of vessels
|
—
|
|
—
|
|
318,032
|
|
—
|
Total
expenses
|
109,188,304
|
|
203,763,913
|
|
594,199,089
|
|
639,232,183
|
|
|
|
|
|
|
|
|
Income from
operations
|
18,735,106
|
|
30,794,348
|
|
105,507,817
|
|
78,872,205
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(3,649,940)
|
|
(3,334,804)
|
|
(14,772,164)
|
|
(10,329,397)
|
Income attributable to
Non-controlling interest recorded as long-term liability interest
expense
|
(755,563)
|
|
(409,254)
|
|
(6,717,414)
|
|
(1,184,741)
|
Unrealized (loss) gain
on derivative instruments
|
1,192,416
|
|
(9,784,274)
|
|
682,323
|
|
3,886,201
|
Other
income
|
290,025
|
|
327,693
|
|
807,142
|
|
1,129,436
|
Total other expense,
net
|
(2,923,062)
|
|
(13,200,639)
|
|
(20,000,113)
|
|
(6,498,501)
|
|
|
|
|
|
|
|
|
Net income
|
15,812,044
|
|
17,593,709
|
|
85,507,704
|
|
72,373,704
|
Income attributable to
noncontrolling interests
|
(309,443)
|
|
(2,443,553)
|
|
(6,016,291)
|
|
(5,146,871)
|
Net income
attributable to Pangaea Logistics Solutions Ltd.
|
$
15,502,601
|
|
$
15,150,156
|
|
$
79,491,413
|
|
$
67,226,833
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.35
|
|
$
0.34
|
|
$
1.79
|
|
$
1.53
|
Diluted
|
$
0.34
|
|
$
0.34
|
|
$
1.76
|
|
$
1.50
|
|
|
|
|
|
|
|
|
Weighted average shares
used to compute earnings per common share
|
|
|
|
|
|
|
|
Basic
|
44,435,664
|
|
44,004,980
|
|
44,398,987
|
|
43,997,311
|
Diluted
|
44,985,969
|
|
44,689,309
|
|
45,059,587
|
|
44,848,997
|
Pangaea Logistics
Solutions Ltd. Consolidated Balance Sheets
|
|
|
December 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
128,384,606
|
|
$
56,208,902
|
Restricted
cash
|
—
|
|
—
|
Accounts receivable
(net of allowance of $4,367,848 and $1,990,459 at December 31, 2022
and 2021, respectively)
|
36,755,149
|
|
54,259,265
|
Bunker
inventory
|
29,104,436
|
|
27,147,760
|
Advance hire, prepaid
expenses and other current assets
|
28,266,831
|
|
46,347,687
|
Total current
assets
|
222,511,022
|
|
183,963,614
|
|
|
|
|
Fixed assets,
net
|
476,524,752
|
|
471,912,810
|
Advances for vessel
purchases
|
—
|
|
1,990,000
|
Finance lease right of
use assets, net
|
43,921,569
|
|
45,195,759
|
Other Non-current
Assets
|
5,284,127
|
|
3,961,823
|
Total
assets
|
$
748,241,470
|
|
$ 707,024,006
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
$
38,554,131
|
|
$
49,154,439
|
Related party notes
payable
|
—
|
|
242,852
|
Deferred
revenue
|
20,883,958
|
|
32,205,312
|
Current portion of
long-term debt
|
15,782,530
|
|
15,443,115
|
Current portion of
finance lease liabilities
|
16,365,075
|
|
14,479,803
|
Dividends
payable
|
626,178
|
|
213,765
|
Total current
liabilities
|
92,211,872
|
|
111,739,286
|
|
|
|
|
Secured long-term debt,
net
|
98,819,739
|
|
105,836,797
|
Finance lease
liabilities
|
168,513,939
|
|
170,959,553
|
Long-term liabilities -
other
|
19,974,390
|
|
17,806,976
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized and no shares issued
or outstanding
|
—
|
|
—
|
Common stock, $0.0001
par value, 100,000,000 shares authorized, 45,898,395 and 45,617,840
shares issued and outstanding at December 31, 2022 and 2021,
respectively
|
4,590
|
|
4,562
|
Additional paid-in
capital
|
162,894,080
|
|
161,534,280
|
Retained
Earnings
|
151,327,392
|
|
85,663,375
|
Total Pangaea
Logistics Solutions Ltd. equity
|
314,226,062
|
|
247,202,217
|
Non-controlling
interests
|
54,495,468
|
|
53,479,177
|
Total stockholders'
equity
|
368,721,530
|
|
300,681,394
|
Total liabilities
and stockholders' equity
|
$
748,241,470
|
|
$ 707,024,006
|
Pangaea Logistics
Solutions Ltd. Consolidated Statements of Cash
Flows
|
|
|
Years ended December
31,
|
|
2022
|
|
2021
|
Operating
activities
|
|
|
|
Net income
|
$
85,507,704
|
|
$
72,373,704
|
Adjustments to
reconcile net income to net cash provided by operations:
|
|
|
|
Depreciation and
amortization expense
|
29,489,810
|
|
22,974,249
|
Amortization of
deferred financing costs
|
1,005,487
|
|
920,995
|
Amortization of
prepaid rent
|
122,343
|
|
115,256
|
Unrealized gain on
derivative instruments
|
(682,323)
|
|
(3,886,201)
|
Income from equity
method investee
|
(807,142)
|
|
(1,129,436)
|
Earnings attributable
to non-controlling interest recorded as interest expense
|
6,717,414
|
|
1,184,741
|
Provision for doubtful
accounts
|
2,377,389
|
|
1,559,378
|
Loss on impairment of
vessels
|
3,007,809
|
|
—
|
Loss on sales of
vessels
|
318,032
|
|
—
|
Drydocking
costs
|
(6,019,126)
|
|
(8,075,813)
|
Share-based
compensation
|
1,767,726
|
|
2,102,897
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
15,126,727
|
|
(26,666,490)
|
Bunker
inventory
|
(1,956,676)
|
|
(11,181,513)
|
Advance hire, prepaid
expenses and other current assets
|
19,086,893
|
|
(24,935,427)
|
Accounts payable,
accrued expenses and other current liabilities
|
(8,939,313)
|
|
16,983,215
|
Deferred
revenue
|
(11,321,354)
|
|
19,405,751
|
Net cash provided by
operating activities
|
134,801,400
|
|
61,745,306
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of vessels and
vessel improvements
|
(35,740,482)
|
|
(194,620,582)
|
Proceeds from sale of
vessels
|
8,400,000
|
|
—
|
Acquisition of
non-controlling interest
|
—
|
|
—
|
Advances for Vessel
Purchases / Investment in newbuildings in-process
|
—
|
|
(1,990,000)
|
Purchase of equipment
and internal use software
|
(653,452)
|
|
(42,963)
|
Contributions to
non-consolidated subsidiaries
|
(515,162)
|
|
(1,138,835)
|
Net cash used in
investing activities
|
(28,509,096)
|
|
(197,792,380)
|
|
|
|
|
Financing
activities
|
|
|
|
Proceeds from long-term
debt
|
8,500,000
|
|
79,150,000
|
Payments of financing
and issuance costs
|
(466,544)
|
|
(2,046,450)
|
Payments of long-term
debt
|
(15,443,115)
|
|
(61,960,469)
|
Proceeds from finance
leases
|
15,000,000
|
|
141,166,978
|
Payments on finance
lease obligation
|
(15,834,059)
|
|
(9,919,514)
|
Payments on other
long-term liability
|
(5,000,000)
|
|
(2,500,000)
|
Dividends paid to
non-controlling interests
|
(5,000,000)
|
|
(3,333,334)
|
Common stock accrued
dividends paid
|
(13,414,984)
|
|
(5,535,261)
|
Cash paid for incentive
compensation shares relinquished
|
(407,898)
|
|
(150,015)
|
Contributions from
non-controlling interests
|
—
|
|
9,182,423
|
Payments to
non-controlling interest recorded as long-term liability
|
(2,050,000)
|
|
(195,598)
|
Net cash (used in)
provided by financing activities
|
(34,116,600)
|
|
143,858,760
|
|
|
|
|
Net increase in cash
and cash equivalents
|
72,175,704
|
|
7,811,686
|
Cash and cash
equivalents at beginning of period
|
56,208,902
|
|
48,397,216
|
Cash and cash
equivalents at end of period
|
$
128,384,606
|
|
$
56,208,902
|
|
|
|
|
Supplemental cash
flow items:
|
|
|
|
Cash paid for
interest
|
$
14,906,972
|
|
$
9,088,684
|
Pangaea Logistics
Solutions Ltd. Reconciliation of Non-GAAP
Measures (unaudited)
|
|
|
For the three months
ended
|
|
For the twelve months
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
Net
Transportation and Service Revenue
|
|
|
|
|
|
|
|
Gross Profit
|
$
22,700,870
|
|
$
35,102,473
|
|
$
129,050,037
|
|
$
97,938,881
|
Add:
|
|
|
|
|
|
|
|
Vessel Depreciation and
amortization
|
7,471,538
|
|
6,504,554
|
|
29,376,777
|
|
22,874,061
|
Net transportation
and service revenue
|
$
30,172,408
|
|
$
41,607,027
|
|
$
158,426,814
|
|
$
120,812,942
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Net Income
|
$
15,812,044
|
|
$
17,593,709
|
|
$
85,507,704
|
|
$
72,373,704
|
Interest expense,
net
|
4,405,503
|
|
3,744,058
|
|
21,489,578
|
|
11,514,138
|
Depreciation and
amortization
|
7,529,397
|
|
6,522,946
|
|
29,489,810
|
|
22,974,249
|
EBITDA
|
27,746,944
|
|
27,860,713
|
|
136,487,092
|
|
106,862,091
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Loss on impairment of
vessels
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on sale of
vessels
|
—
|
|
—
|
|
318,032
|
|
—
|
Share-based
compensation
|
309,754
|
|
367,939
|
|
1,767,726
|
|
2,102,897
|
Unrealized (gain) loss
on derivative instruments, net
|
(1,192,416)
|
|
9,784,274
|
|
(682,323)
|
|
(3,886,201)
|
Adjusted
EBITDA
|
$
26,864,282
|
|
$
38,012,926
|
|
$
140,898,336
|
|
$
105,078,787
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
Net income
attributable to Pangaea Logistics Solutions Ltd.
|
$
15,502,601
|
|
$
15,150,156
|
|
$
79,491,413
|
|
$
67,226,833
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
44,435,664
|
|
44,004,980
|
|
44,398,987
|
|
43,997,311
|
Weighted average number
of common shares - diluted
|
44,985,969
|
|
44,689,309
|
|
45,059,587
|
|
44,848,997
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
$
0.35
|
|
$
0.34
|
|
$
1.79
|
|
$
1.53
|
Earnings per common
share - diluted
|
$
0.34
|
|
$
0.34
|
|
$
1.76
|
|
$
1.50
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
|
|
Net income
attributable to Pangaea Logistics Solutions Ltd.
|
$
15,502,601
|
|
$
15,150,156
|
|
$
79,491,413
|
|
$
67,226,833
|
Non-GAAP
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Loss on impairment of
vessels
|
—
|
|
—
|
|
3,007,809
|
|
—
|
Loss on sale of
vessels
|
—
|
|
—
|
|
318,032
|
|
—
|
Unrealized (gain) loss
on derivative instruments, net
|
1,192,416
|
|
(9,784,274)
|
|
682,323
|
|
3,886,201
|
Non-GAAP adjusted net
income attributable to Pangaea Logistics Solutions Ltd.
|
$
14,310,185
|
|
$
24,934,430
|
|
$
82,134,931
|
|
$
63,340,632
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
44,435,664
|
|
44,004,980
|
|
44,398,987
|
|
43,997,311
|
Weighted average number
of common shares - diluted
|
44,985,969
|
|
44,689,309
|
|
45,059,587
|
|
44,848,997
|
|
|
|
|
|
|
|
|
Adjusted EPS -
basic
|
$
0.32
|
|
$
0.57
|
|
$
1.85
|
|
$
1.44
|
Adjusted EPS -
diluted
|
$
0.32
|
|
$
0.56
|
|
$
1.82
|
|
$
1.41
|
INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used
herein, "GAAP" refers to accounting principles generally accepted
in the United States of
America. To supplement our consolidated financial statements
prepared and presented in accordance with GAAP, this earnings
release discusses non-GAAP financial measures, including
non-GAAP net revenue, non-GAAP adjusted EBITDA and non-GAAP
Adjusted EPS. These are considered non-GAAP financial measures as
defined in Rule 101 of Regulation G promulgated by the Securities
and Exchange Commission. Generally, a non-GAAP financial
measure is a numerical measure of a company's historical or future
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. The presentation of this non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP.
We use non-GAAP financial measures for internal financial and
operational decision making purposes and as a means to evaluate
period-to-period comparisons of the performance and results of
operations of our core business. Our management believes that
non-GAAP financial measures provide meaningful supplemental
information regarding the performance of our core business by
excluding charges that are not incurred in the normal course of
business. Non-GAAP financial measures also facilitate management's
internal planning and comparisons to our historical performance and
liquidity. We believe certain non-GAAP financial measures are
useful to investors as they allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision making and are used by our institutional
investors and the analyst community to help them analyze the
performance and operational results of our core business.
Gross Profit. Gross profit represents total revenue less
net transportation and service revenue and less vessel depreciation
and amortization.
Net transportation and service revenue. Net
transportation and service revenue represents total revenue less
the total direct costs of transportation and services, which
includes charter hire, voyage and vessel operating expenses. Net
transportation and service revenue is included because it is used
by management and certain investors to measure performance by
comparison to other logistic service providers. Net transportation
and service revenue is not an item recognized by the generally
accepted accounting principles in the
United States of America, or U.S. GAAP, and should not be
considered as an alternative to net income, operating income, or
any other indicator of a company's operating performance required
by U.S. GAAP. Pangaea's definition of net transportation and
service revenue used here may not be comparable to an operating
measure used by other companies.
Adjusted EBITDA and adjusted EPS. Adjusted EBITDA
represents net income (or loss), determined in accordance with U.S.
GAAP, excluding interest expense, income taxes, depreciation and
amortization, loss on sale and leaseback of vessels, share-based
compensation and other non-operating income and/or expense, if any.
Earnings per share represents net income divided by the weighted
average number of common shares outstanding. Adjusted earnings per
share represents net income attributable to Pangaea Logistics
Solutions Ltd. plus, when applicable, loss on sale of vessel, loss
on sale and leaseback of vessel, loss on impairment of vessel,
unrealized gains and losses on derivative instruments, and certain
non-recurring charges, divided by the weighted average number of
shares of common stock.
There are limitations related to the use of net revenue versus
income from operations, adjusted EBITDA versus income from
operations, and adjusted EPS versus EPS calculated in accordance
with GAAP. In particular, Pangaea's definition of adjusted
EBITDA used here are not comparable to EBITDA.
The table set forth above provides a reconciliation of the
non-GAAP financial measures presented to the most directly
comparable financial measures prepared in accordance with GAAP.
About Pangaea Logistics Solutions Ltd.
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides
logistics services to a broad base of industrial customers who
require the transportation of a wide variety of dry bulk cargoes,
including grains, pig iron, hot briquetted iron, bauxite, alumina,
cement clinker, dolomite, and limestone. The Company addresses the
transportation needs of its customers with a comprehensive set of
services and activities, including cargo loading, cargo discharge,
vessel chartering, and voyage planning. Learn more at
www.pangaeals.com.
Investor Relations Contacts
Gianni Del
Signore
|
|
Noel Ryan or Stefan
Neely
|
Chief Financial
Officer
|
|
|
401-846-7790
|
|
|
Investors@pangaeals.com
|
|
PANL@val-adv.com
|
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The Company disclaims any obligation to publicly update
or revise these statements whether as a result of new information,
future events or otherwise, except as required by law. Such
risks and uncertainties include, without limitation, the strength
of world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for dry bulk shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors, as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at www.sec.gov.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/pangaea-logistics-solutions-ltd-reports-record-financial-results-for-the-three-months-and-year-ended-december-31-2022-301773396.html
SOURCE Pangaea Logistics Solutions Ltd.