Shares of low-cost carrier Spirit Airlines plunged a staggering 47% on Tuesday after a federal judge ruled to block the proposed $3.8 billion acquisition by JetBlue Airways. The decision reignited antitrust concerns surrounding consolidation in the airline industry and delivered a major setback to the merger partners.
Judge Leo Sorokin of the U.S. District Court in Massachusetts sided with the Justice Department, which sued earlier this year to halt the deal between the two discount airlines. Regulators argued the merger would lead to higher fares, fewer choices, and reduced competition – particularly impacting budget-conscious leisure travelers.
In his ruling, Sorokin agreed the combination of JetBlue and Spirit would substantially reduce competition in major metropolitan areas and lead to dominant market power on hundreds of routes. Evidence also suggested the merger was likely to raise base fares above pre-merger levels, contradicting the airlines’ claims that the deal would actually lower costs for consumers.
The Justice Department applauded the decision, stating it protected the interests of millions of air travelers against the threat of increased prices and reduced options. The Biden administration has taken a tougher stance on antitrust issues across industries like tech and healthcare. Blocking this airline deal marked the first time in over 20 years regulators successfully halted a major U.S. carrier merger.
JetBlue and Spirit responded with disappointment, saying they disagree with the judge’s rationale and are evaluating their legal options. Previously, the carriers contended combining forces would fuel competition with larger legacy airlines and drive down airfares. But regulators argued JetBlue’s Northeast Alliance with American Airlines already gave the company substantial market power.
For Spirit, the failed acquisition is a crushing blow after months in limbo. The ultra-low cost airline initially agreed to merge with fellow discounter Frontier Airlines before JetBlue stepped in with a higher bid. Now, Spirit finds itself alone again after the about-face regulators delivered.
The collapsed deal and renewed antitrust scrutiny sent Spirit’s stock price into a nosedive. Shares cratered from Friday’s close of $19.66 to around $10.40 on Tuesday after the ruling. The 47% single-day wipeout vaporized over $1.4 billion in market value. Investors are surely questioning what’s next for the budget carrier without an imminent buyer or partner.
The blocked merger also casts uncertainty over ongoing consolidation in the travel and tourism sector. Many investors had bet on further airline combinations to drive efficiency and shareholder returns. With regulators now throwing up roadblocks, the appetite for large-scale airline deals could diminish. That may leave some carriers struggling to gain scale and keep pace with leading players like Delta and American.
Broader travel stocks also felt the tremor of the scuttled Spirit-JetBlue tie-up. Shares of Hawaiian Holdings, involved in a proposed merger with Alaska Air, fell nearly 2% Tuesday afternoon amid the uncertain regulatory environment. Cruise operators like Norwegian and Royal Caribbean slid as much as 5%, potentially signaling dampened outlooks for leisure sector combinations.
Potentially compounding Spirit’s challenges, competitor Frontier Airlines could come back to the table with a renewed merger proposal now that JetBlue is sidelined. Spirit already expended time and resources negotiating with Frontier last year. More uncertainty around consolidation could further destabilize the airline at a precarious moment.
Looking ahead, Spirit and JetBlue still have avenues to continue the legal fight. They could appeal the decision or take their arguments directly to regulators for another look. But after the Justice Department’s strong stance earlier in the case, the odds of overturning the ruling remain long.
For now, the blocked acquisition marks a setback in the wave of consolidation that has swept the U.S. airline industry over the past two decades. Major carriers will be wary of attempting large mergers and risking similar antitrust opposition. While the Biden administration succeeded in halting this particular deal, ongoing fragmentation may not solve the lack of competition in air travel markets across America.
The escalating crisis in the Red Sea is creating chaos in global supply chains and sending container shipping rates skyrocketing. Liners like Maersk have indefinitely suspended all Red Sea transits after a U.S. military strike killed Houthi rebels who attacked container ships. This geopolitical turmoil means sharply higher costs for cargo shippers and potential volatility for investors in container shipping stocks.
The extensive rerouting of container ships around Africa’s Cape of Good Hope is severely disrupting global supply chains. But for investors focused on rates, the diversions are fueling optimism about 2024 profits for liner companies.
Various spot rate indexes show Asia-Europe rates have more than doubled since early December, with some lanes even tripling. Rates for routes to the U.S. East Coast have jumped 65-86% amid the intensifying military action and indefinite Red Sea suspensions. This promises to keep rates elevated through the first quarter of 2024.
However, while spot rates spike, rerouting ships increases voyage lengths by weeks and fuel consumption by tons. Military action also raises insurance costs. And delayed arrivals mean lower cargo volumes per quarter. Investors must weigh the benefits of higher rates against the headwinds of higher costs and reduced volumes.
Zim’s stock price has been on a rollercoaster, plunging 18% in late December on hopes Red Sea transits would resume, then surging 23% in early January after the new suspensions were announced. This extreme volatility highlights the risks from geopolitical unpredictability.
With rates rising rapidly, heavily-shorted stocks like Zim could unleash violent short squeezes, forcing bearish speculators to cover positions at a loss. The jump in borrow fees for Zim shares signals the mounting risks for short sellers.
If Houthi attacks continue regardless of U.S. warnings, coalition airstrikes in Yemen become more probable. A major ground war would endanger oil supplies, increasing fuel costs for shipping companies. Investors need to assess escalation risks and potential fallout.
Despite the short-term chaos, long-term tailwinds like fleet capacity control, recovering demand, and infrastructure constraints still favor strong rates over the long run. Red Sea tensions don’t negate those structural positives.
The Red Sea emergency amplifies rate momentum but countervailing uncertainties persist. Investors should prepare for liner stock volatility, scrutinize rate indexes closely, and focus on carriers with cost discipline and contracted volumes. While geopolitical mayhem won’t disrupt long-term shipping tailwinds, it may bring choppy near-term waters for investors.
Eagle Bulk Shipping Inc. (“Eagle”) is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Eagle will get a 13% premium. Eagle shareholders will receive 2.6211 shares of Star Bulk for each share owned worth $52.29 per share based on Star Bulks Monday night close of $19.95. The implied price represents a 13% premium based on Monday night’s close and a 17% premium based on Friday’s close. The combined company will retain the Star Bulk name. Star Bulk management will take over most management positions including Chairman and CEO with certain Eagle management joining the team. The transaction is expected to close in the first half of 2024.
The combined company will be a leading dry bulk shipper. The combined market capitalization of $2.1 billion and fleet of 169 ships makes it one of the largest in the world. The fleet includes both small and large ships with 97% equipped with scrubbers and an average age of 11 years. The company is a low-cost operator, a position that should improve with an estimated $50 million in cost savings. Combined net debt of $1.4 billion represents a reasonable 37% of capitalization.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
HOUSTON, Nov. 28, 2023 (GLOBE NEWSWIRE) — Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, announced today the appointment of Edward Chipman (“Chip”) Earle as Executive Vice President, General Counsel, Chief Administrative Officer, Chief Compliance Officer and Corporate Secretary, effective November 27th. Mr. Earle will succeed Executive Vice President Peter R. Buchler, who is retiring from Orion after 15 years of service.
Mr. Earle joins Orion from Newpark Resources, Inc. (NYSE: NR), a service provider to the industrial and energy sectors, where he was Vice President – General Counsel, Chief Administrative Officer, Chief Compliance Officer, and Corporate Secretary. Prior to Newpark, Mr. Earle held executive leadership roles at Transocean (NYSE: RIG) and Bristow Group (NYSE: VTOL).
“We are excited to welcome Chip to our senior leadership team. With over 20 years in worldwide legal, compliance, and risk management, Chip brings valuable experience to Orion. We look forward to his leadership and guidance in these areas that are critical to the successful execution of our long-term strategy. I also want to thank Pete Buchler for his many years of dedicated service and wish him all the best in his well-earned retirement,” said Travis Boone, Chief Executive Officer of Orion Group Holdings, Inc.
Mr. Earle holds a Bachelor of Arts degree from Middlebury College. He received his Master Degree in Business Administration (MBA) with a focus in Energy Finance from the University of Texas McCombs School of Business and his Juris Doctor (JD) from the University of Texas School of Law.
About Orion Group Holdings Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. https://www.oriongroupholdingsinc.com.
Facing mounting criticism after production setbacks and labor unrest rattled investor confidence this year, automaker General Motors (GM) is opening the corporate coffers to initiate a massive $10 billion share repurchase program. The move aims to regain Wall Street’s trust by returning billions to shareholders.
Accelerating Buybacks to Prop Up GM Stock
GM shares have sputtered in 2023, down 14% year-to-date heading into Wednesday’s announcement. The stock dove nearly 5% in October when contract negotiations with the United Auto Workers (UAW) broke down into nationwide strikes, forcing GM to suspend guidance. With electric vehicle launches also lagging internal targets, GM hopes to stop the bleeding and inject positive sentiment through shareholder payouts.
The accelerated buyback comes after GM already spent $3.3 billion repurchasing shares so far this year. By expanding repurchases to $10 billion, GM moves aggressively to reduce outstanding shares and boost key per-share metrics like earnings-per-share.
How The $10 Billion GM Buyback Will Work
Rather than spacing out buybacks over several years, GM is frontloading the program to have maximum near-term impact. The company will immediately receive $6.8 billion worth of its shares from the banks underwriting the plan – Bank of America, Goldman Sachs, Barclays and Citibank.
These banks will then repurchase GM shares on the open market over the next six months. The final tally of shares bought back depends on GM’s average share price during that period. If shares remain around current levels in the $37 range, the full $10 billion could retire nearly 270 million shares – almost 20% of GM’s float.
Such large buybacks often drive share prices higher by soaking up excess supply. It also means per-share financial metrics like earnings, cash flow and dividends appear larger with fewer shares outstanding. For GM to hit the upper end of its newly reinstated earnings-per-share guidance range this year, solid buyback execution will be key.
GM Shareholders Get More Cash Too
In tandem with turbocharging buybacks, GM also announced a 33% dividend hike from 9 cents to 12 cents per share annually. Together, these moves signal a shareholder-friendly turn for the automaker after delays in its electric and autonomous programs led to executive departures.
Rather than flashy visionary promises, GM looks to deliver tangible returns now in the form of cold hard cash. These initiatives could take center stage heading into 2024 as leadership emphasizes financial consistency through a period of technological transition.
For income-focused investors and funds, juicier dividends make GM appear more attractive relative to other automakers and electric vehicle pure plays. Combined with reduced shares outstanding, GM’s 4.2% dividend yield will rise even higher, bringing in more potential shareholders.
Outlook Still Uncertain Beyond 2023
An open question is whether GM can sustain enhanced shareholder returns in the years ahead while simultaneously investing billions in next-generation manufacturing and technology. Many bears argue spreading cash so liberally now leaves GM vulnerable to economic shocks down the road.
But with UAW deals running into 2028 and strains from this year mostly wiped clean, GM can campaign on hitting its earnings guidance in 2024 and rewarding loyal shareholders along the way. Where GM goes from there, however, remains clouded in uncertainty.
HOUSTON, Nov. 27, 2023 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) (NASDAQ: GLDD), the largest provider of dredging services in the United States, today announced that its President and Chief Executive Officer Lasse Petterson and its Senior Vice President, Chief Financial Officer and Treasurer, Scott Kornblau, will present at NobleCon19 – Noble Capital Markets’ 19th Annual Emerging Growth Equity Conference at Florida Atlantic University, Executive Education Complex, in Boca Raton, Florida, on Monday, December 4, 2023 at 10:30 AM Eastern Standard Time. There will also be an opportunity to meet with management during a breakout session scheduled immediately following the presentation.
A high-definition video webcast of the presentation will be available the following day on the Company’s website www.gldd.com and as part of a complete catalog of presentations available at Noble Capital Markets’ Conference website: www.nobleconference.com and on Channelchek www.channelchek.com the investor portal created by Noble. The webcast will be archived on the company’s website, the NobleCon website, and on Channelchek.com for 90 days following the event.
The Company Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 133-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
About Noble Capital Markets, Inc.
Noble Capital Markets (“Noble”) is a research driven investment bank that has supported small & microcap companies since 1984. As a FINRA and SEC licensed broker dealer Noble provides institutional-quality equity research, merchant and investment banking, and order execution services. In 2005, Noble established NobleCon, an investor conference that has grown substantially over the last decade. Noble launched www.channelchek.com in 2018 – an investor community dedicated exclusively to public small and micro-cap companies and their industries. Channelchek is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 6,000 public emerging growth companies are listed on the site, with growing content including research, webcasts, podcasts, and balanced news.
Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release may constitute “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Exchange Commission (the “SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Great Lakes and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. These cautionary statements are being made pursuant to the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Great Lakes cautions investors that any forward-looking statements made by Great Lakes are not guarantees or indicative of future events.
Although Great Lakes believes that its plans, intentions and expectations reflected in this press release are reasonable, actual events could differ materially. The forward-looking statements contained in this press release are made only as of the date hereof and Great Lakes does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.
For further information contact: Tina Baginskis Director, Investor Relations 630-574-3024
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Seanergy 2023-3Q results were generally in line with expectations. Shipping rates declined as expected but were offset by better-than-expected available shipping days. Operating costs and bottom-line results were also near expectations.
The company has fixed additional rates for the upcoming quarter and realized rates should rise. The company has locked in 60% of expected shipping days at an average rate that is roughly 25% above the average realized rate for the most recent quarter. Available days will go up with a new charter-in.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
STAMFORD, Conn., Nov. 02, 2023 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (NYSE: EGLE) (“Eagle” or the “Company”), one of the world’s largest owner-operators within the midsize drybulk vessel segment, today reported financial results for the quarter ended September 30, 2023.
Quarter Highlights:
Generated Revenues, net of $82.6 million
Achieved TCE(1) of $11,482 based on TCE Revenue(1) of $54.1 million
Incurred a net loss of $5.2 million, or $0.55 per basic share
Adjusted net loss(1) of $2.9 million, or $0.31 per basic share(1)
Generated Adjusted EBITDA(1) of $15.6 million
Completed the sale of the Sankaty Eagle, a non-core, non-scrubber-fitted Supramax bulkcarrier
Declared a quarterly dividend of $0.10 per share for the third quarter of 2023
Dividend is payable on November 22, 2023 to shareholders of record at the close of business on November 14, 2023
1These are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release. An explanation of these measures and how they are calculated are also included below under the heading “Supplemental Information – Non-GAAP Financial Measures.”
Recent Developments:
Coverage position for the fourth quarter of 2023 is as follows:
68% of owned available days fixed at an average TCE of $15,655
Eagle’s CEO Gary Vogel commented, “Although our financial results for the third quarter are reflective of the headwinds faced by the broader industry, we were able to once again outperform the BSI (Baltic Supramax Index) by 14%, achieving a net TCE of $11,482. Specifically, market fundamentals remained challenging during the quarter, with the BSI averaging just over $10,000 for the period.
Freight rates bottomed as we moved through the quarter, with September benefiting from a strong rally as the index reached almost $15,000. The Atlantic market was the main driver for this recovery in rates, catalyzed by robust exports of soybeans and corn out of Brazil following this season’s record crop. Looking ahead to the fourth quarter, spot rates have come off from their recent highs, but remain supported with the BSI averaging approximately $13,700 quarter-to-date. Further, as of today, we have fixed approximately 68% of our owned available days, at a net TCE of $15,655.
During the quarter, we continued to focus on operational efficiencies and improvements. Our OPEX costs were down sequentially for the third quarter in a row and Eagle’s entire fleet is now leveraging SoFar Ocean’s advanced voyage optimization system achieving meaningful fuel and emissions reductions.
We remain positive about the medium-term prospects for the drybulk industry, particularly given strong supply side fundamentals, macroeconomic risks notwithstanding. With a fully modern fleet of 52, predominately scrubber-fitted vessels, and approximately $170 million in total liquidity, Eagle is well-positioned to continue to take advantage of opportunities for the benefit of our stakeholders.”
Fleet Operating Data
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Ownership Days
4,808
4,831
14,425
14,424
Owned Available Days
4,708
4,588
13,791
13,599
Fleet Development
Sankaty Eagle, a 2011-built Supramax (58k DWT)
Sold in second quarter of 2023 for $16.4 million and delivered to new owners in third quarter of 2023
Owned fleet totals 52 vessels (96% scrubber-fitted) with an average age of 10.0 years
Results of Operations for the three and nine months ended September 30, 2023 and 2022
For the three months ended September 30, 2023, the Company reported a net loss of $5.2 million, or basic and diluted net loss per share of $0.55. In the comparable quarter of 2022, the Company reported net income of $77.2 million, or basic and diluted net income per share of $5.94 and $4.77, respectively.
For the three months ended September 30, 2023, the Company reported an adjusted net loss of $2.9 million, which excludes net unrealized losses on FFAs and bunker swaps of $2.2 million, or basic and diluted adjusted net loss per share of $0.31. In the comparable quarter of 2022, the Company reported adjusted net income of $74.3 million, which excludes net unrealized gains on FFAs and bunker swaps of $7.1 million and a loss on debt extinguishment of $4.2 million, or basic and diluted adjusted net income per share of $5.72 and $4.58, respectively.
For the nine months ended September 30, 2023, the Company reported net income of $16.1 million, or basic and diluted net income per share of $1.38 and $1.36, respectively. For the nine months ended September 30, 2022, the Company reported net income of $224.7 million, or basic and diluted net income per share of $17.31 and $13.86, respectively.
For the nine months ended September 30, 2023, the Company reported adjusted net income of $17.2 million, which excludes net unrealized losses on FFAs and bunker swaps of $0.4 million and impairment of operating lease right-of-use assets of $0.7 million, or basic and diluted adjusted net income per share of $1.47 and $1.44, respectively. For the nine months ended September 30, 2022, the Company reported adjusted net income of $220.4 million, which excludes net unrealized gains on FFAs and bunker swaps of $8.5 million and a loss on debt extinguishment of $4.2 million, or basic and diluted adjusted net income per share of $16.97 and $13.59, respectively.
Revenues, net
Revenues, net for the three months ended September 30, 2023 were $82.6 million compared to $185.3 million for the comparable quarter of 2022. Revenues, net decreased $102.7 million primarily due to lower rates on both time and voyage charters, driven by a decline in the drybulk market.
Revenues, net for the nine months ended September 30, 2023 were $289.2 million compared to $568.4 million for the nine months ended September 30, 2022. Revenues, net decreased $279.2 million primarily due to lower rates on both time and voyage charters, driven by a decline in the drybulk market.
Voyage expenses
Voyage expenses for the three months ended September 30, 2023 were $23.8 million compared to $40.8 million for the comparable quarter of 2022. Voyage expenses decreased $17.0 million primarily due to a $15.0 million reduction in bunker consumption expenses primarily due to decreases in voyage charters and bunker prices and a $1.2 million decrease in broker commissions due to lower freight rates driven by a decline in the drybulk market.
Voyage expenses for the nine months ended September 30, 2023 were $82.7 million compared to $120.7 million for the nine months ended September 30, 2022. Voyage expenses decreased $38.0 million primarily due to a $25.4 million reduction in bunker consumption expenses due to decreases in voyage charters and bunker prices, a $9.1 million reduction in port expenses due to a decrease in voyage charters and a $3.5 million decrease in broker commissions due to lower freight rates driven by a decline in the drybulk market.
Vessel operating expenses
Vessel operating expenses for the three months ended September 30, 2023 were $28.8 million compared to $33.1 million for the comparable quarter of 2022. Vessel operating expenses decreased $4.3 million primarily due to a $2.6 million decrease in repair costs, a $0.8 million decrease in lube costs driven by lower purchase volume and a $0.5 million decrease in the cost of stores and spares driven by lower purchases.
Vessel operating expenses for the nine months ended September 30, 2023 were $91.1 million compared to $88.2 million for the nine months ended September 30, 2022. Vessel operating expenses increased $2.9 million primarily due to a $3.2 million increase in crewing costs driven by higher compensation and increased crew changes as a result of crewing manager transitions and a $1.4 million increase in costs driven by certain repairs and discretionary spending on upgrades to six vessels, including newly acquired ships, partially offset by a $1.3 million decrease in lube costs driven by lower purchase volume and a $0.4 million decrease in the cost of stores and spares driven by lower purchases.
Adjusted vessel operating expenses(2), which excludes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of the Company’s vessels and discretionary hull and hold upgrades for the three months ended September 30, 2023 were $28.5 million compared to $31.7 million for the comparable quarter in 2022. Adjusted vessel operating expenses decreased $3.2 million primarily due to a $1.5 million decrease in repair costs, a $0.8 million decrease in lube costs driven by lower purchase volume and a $0.5 million decrease in the cost of stores and spares driven by lower purchases. Average daily adjusted vessel operating expenses(1) (“Adjusted DVOE”) for the three months ended September 30, 2023 were $5,922 compared to $6,566 for the comparable quarter in 2022.
Adjusted vessel operating expenses(2), which excludes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of the Company’s vessels and discretionary hull and hold upgrades for the nine months ended September 30, 2023 were $87.5 million compared to $86.4 million for the nine months ended September 30, 2022. Adjusted vessel operating expenses increased $1.1 million primarily due to a $2.6 million increase in crewing costs driven by higher compensation, a $1.3 million increase in repair costs, partially offset by a $1.6 million decrease in lube costs driven by lower purchase volume and a $0.4 million decrease in the cost of stores and spares driven by lower purchases. Adjusted DVOE for the nine months ended September 30, 2023 were $6,068 compared to $5,991 for the nine months ended September 30, 2022.
2This is a non-GAAP financial measure. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading “Supplemental Information – Non-GAAP Financial Measures.”
Charter hire expenses
Charter hire expenses for the three months ended September 30, 2023 were $6.9 million compared to $19.8 million for the comparable quarter of 2022. Charter hire expenses decreased $12.9 million primarily due to decreases in both charter hire rates as a result of a decline in the drybulk market and chartered-in days.
Charter hire expenses for the nine months ended September 30, 2023 were $31.0 million compared to $63.8 million for the nine months ended September 30, 2022. Charter hire expenses decreased $32.8 million primarily due to decreases in both charter hire rates as a result of a decline in the drybulk market and chartered-in days.
Chartered-in days, which is the aggregate number of days in a period during which the Company chartered-in vessels, for the three months ended September 30, 2023 and 2022 were 589 and 1,000, respectively. Chartered-in days for the nine months ended September 30, 2023 and 2022 were 2,315 and 3,102, respectively.
Depreciation and amortization
Depreciation and amortization for the three months ended September 30, 2023 was $15.5 million compared to $15.4 million for the comparable quarter of 2022. Depreciation and amortization increased $0.1 million primarily due to a $0.8 million increase in depreciation from the net impact of vessels acquired and sold during the respective periods and a $0.1 million increase in deferred drydocking cost amortization due to higher drydocking expenditures, partially offset by $0.9 million decrease in depreciation due to a change in our estimated vessel scrap value from $300 per lwt to $400 per lwt, effective January 1, 2023.
Depreciation and amortization for the nine months ended September 30, 2023 was $45.0 million compared to $45.2 million for the nine months ended September 30, 2022. Depreciation and amortization decreased $0.2 million primarily due to a $2.9 million decrease in depreciation due to a change in our estimated vessel scrap value from $300 per lwt to $400 per lwt, effective January 1, 2023, partially offset by a $1.6 million increase in depreciation from the net impact of vessels acquired and sold during the respective periods, a $0.7 million increase in deferred drydocking cost amortization due to higher drydocking expenditures and a $0.3 million increase in depreciation from an increase in installed vessel improvements.
General and administrative expenses
General and administrative expenses for the three months ended September 30, 2023 were $10.7 million compared to $9.7 million for the comparable quarter of 2022. Excluding stock-based compensation expense of $1.7 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, general and administrative expenses for the three months ended September 30, 2023 were $9.0 million compared to $8.2 million for the comparable quarter of 2022. General and administrative expenses increased $1.0 million primarily due to a $0.6 million increase in professional fees and a $0.2 million increase in stock-based compensation expense.
General and administrative expenses for the nine months ended September 30, 2023 were $32.9 million compared to $29.6 million for the nine months ended September 30, 2022. Excluding stock-based compensation expense of $5.7 million and $4.5 million for the nine months ended September 30, 2023 and 2022, respectively, general and administrative expenses for the nine months ended September 30, 2023 were $27.2 million compared to $25.1 million for the nine months ended September 30, 2022. General and administrative expenses increased $3.3 million primarily due to a $1.1 million increase in stock-based compensation expense, a $1.1 million increase in employee-related costs and other small increases across professional fees, corporate travel and office expenses.
Other operating expense
Other operating expense for the three months ended September 30, 2023 and 2022 was $0.7 million and $2.5 million, respectively. Other operating expense for the three months ended September 30, 2023 was primarily comprised of costs related to a 2021 U.S. government investigation into an allegation that one of our vessels may have improperly disposed of ballast water that entered the engine room bilges during a repair. Other operating expense for the three months ended September 30, 2022 was primarily comprised of costs associated with a corporate transaction that did not materialize.
Other operating expense for each of the nine months ended September 30, 2023 and 2022 was $0.9 million and $2.6 million, respectively. Other operating expense for the nine months ended September 30, 2023 was primarily comprised of costs related to a 2021 U.S. government investigation into an allegation that one of our vessels may have improperly disposed of ballast water that entered the engine room bilges during a repair. Other operating expense for the nine months ended September 30, 2022 was primarily comprised of costs associated with a corporate transaction that did not materialize.
Gain on sale of vessels
For the three months ended September 30, 2023, the Company recorded a gain on the sale of the vessel Sankaty Eagle of $4.9 million. For the three months ended September 30, 2022, the Company recorded a gain on the sale of the vessel Cardinal of $9.3 million.
For the nine months ended September 30, 2023, the Company recorded a gain on the sale of the vessels Jaeger, Montauk Eagle, Newport Eagle and Sankaty Eagle of $19.7 million. For the nine months ended September 30, 2022, the Company recorded a gain on the sale of the vessel Cardinal of $9.3 million.
Interest expense
Interest expense for the three months ended September 30, 2023 and 2022 was $7.7 million and $4.2 million, respectively. Interest expense increased $3.5 million due to the impact of increased amounts outstanding under the Global Ultraco Debt Facility and higher interest rates.
Interest expense for the nine months ended September 30, 2023 and 2022 was $16.0 million and $13.0 million, respectively. Interest expense increased $3.0 million primarily due to the impact of increased amounts outstanding under the Global Ultraco Debt Facility and higher interest rates.
Interest income
Interest income for the three months ended September 30, 2023 and 2022 was $1.5 million and $0.9 million, respectively. Interest income increased primarily due to higher interest rates on the Company’s cash balances.
Interest income for the nine months ended September 30, 2023 and 2022 was $5.1 million and $1.1 million, respectively. Interest income increased primarily due to higher interest rates on the Company’s cash balances.
Realized and unrealized loss/(gain) on derivative instruments, net
Realized and unrealized loss/(gain) on derivative instruments, net for the three months ended September 30, 2023 was a loss of $0.1 million compared to a gain of $11.3 million for the comparable quarter of 2022. The $11.4 million decrease was due to market movements as well as lower FFA and bunker swap activity.
Realized and unrealized loss/(gain) on derivative instruments, net for the nine months ended September 30, 2023 was a gain of $2.3 million compared to a gain of $13.3 million for the nine months ended September 30, 2022. The $11.0 million decrease was due to market movements as well as lower FFA and bunker swap activity.
A summary of outstanding FFAs as of September 30, 2023 is as follows:
FFA Period
Average FFA Contract Price
Number of Days Hedged
Quarter ending December 31, 2023 – Buy Positions
$
14,196
(345
)
Quarter ending December 31, 2023 – Sell Positions
$
12,922
1,380
Liquidity and Capital Resources
Nine Months Ended
($ in thousands)
September 30, 2023
September 30, 2022
Net cash provided by operating activities
$
35,965
$
242,491
Net cash (used in)/provided by investing activities
(27,831
)
4,090
Net cash used in financing activities
(81,434
)
(135,198
)
Net (decrease)/increase in cash, cash equivalents and restricted cash
(73,300
)
111,383
Cash, cash equivalents and restricted cash at beginning of period
189,754
86,222
Cash, cash equivalents and restricted cash at end of period
$
116,454
$
197,605
Net cash provided by operating activities for the nine months ended September 30, 2023 was $36.0 million, compared to $242.5 million for the nine months ended September 30, 2022. The decrease is primarily due to a decrease in net income driven by lower freight rates.
Net cash used in investing activities for the nine months ended September 30, 2023 was $27.8 million, compared to net cash provided by investing activities of $4.1 million for the nine months ended September 30, 2022. During the nine months ended September 30, 2023, the Company paid (i) $81.8 million to purchase three vessels and other vessel improvements, (ii) $2.1 million to purchase BWTS and (iii) $0.7 million to purchase other fixed assets. These uses of cash were partially offset by $56.6 million in net proceeds from the sale of four vessels. During the nine months ended September 30, 2022, the Company received net proceeds of $14.9 million from the sale of one vessel and paid (i) $5.7 million to purchase BWTS, (ii) $4.1 million as an advance for the purchase of a vessel, (iii) $0.8 million to purchase vessel improvements and (iv) $0.3 million to purchase other fixed assets.
Net cash used in financing activities for the nine months ended September 30, 2023 was $81.4 million, compared to $135.2 million for the nine months ended September 30, 2022. During the nine months ended September 30, 2023, the Company (i) paid $222.7 million to repurchase Common Stock, inclusive of fees, (ii) repaid $37.4 million of term loan under the Global Ultraco Debt Facility, (iii) paid $15.8 million in dividends and (iv) paid $2.0 million for taxes related to net share settlement of equity awards. These uses of cash were partially offset by (i) $123.4 million of proceeds, net of debt issuance costs, from the Revolving Facility under the Global Ultraco Debt Facility and (ii) $73.1 million of proceeds, net of debt issuance costs, from the Term Facility under the Global Ultraco Debt Facility. During the nine months ended September 30, 2022, the Company (i) paid $81.6 million in dividends, (ii) repaid $37.4 million of term loan under the Global Ultraco Debt Facility, (iii) paid $14.2 million to repurchase $10.0 million in aggregate principal amount of Convertible Bond Debt, and (iv) paid $2.4 million for taxes related to net share settlement of equity awards.
As of September 30, 2023, cash and cash equivalents including noncurrent restricted cash was $116.5 million compared to $189.8 million as of December 31, 2022.
A summary of the Company’s debt as of September 30, 2023 and December 31, 2022 is as follows:
September 30, 2023
December 31, 2022
($ in thousands)
Principal Amount Outstanding
Debt Discounts and Debt Issuance Costs
Carrying Value
Principal Amount Outstanding
Debt Discounts and Debt Issuance Costs
Carrying Value
Convertible Bond Debt
$
104,119
$
(328
)
$
103,791
$
104,119
$
(620
)
$
103,499
Global Ultraco Debt Facility – Term Facility
275,400
(5,778
)
269,622
237,750
(6,767
)
230,983
Global Ultraco Debt Facility – Revolving Facility
125,000
(2,941
)
122,059
—
—
—
Total debt
504,519
(9,047
)
495,472
341,869
(7,387
)
334,482
Less: Current portion – Convertible Bond Debt
(104,119
)
328
(103,791
)
—
—
—
Less: Current portion – Global Ultraco Debt Facility
(49,800
)
—
(49,800
)
(49,800
)
—
(49,800
)
Total long-term debt
$
350,600
$
(8,719
)
$
341,881
$
292,069
$
(7,387
)
$
284,682
(1
)
As of September 30, 2023 and December 31, 2022, the undrawn revolving facility under the Global Ultraco Debt Facility was $55 million and $100 million, respectively.
As of September 30, 2023, the effective conversion price of the Convertible Bond Debt equals $31.70 per share of Common Stock. If the market value of the Company’s Common Stock remains above this price, we would expect the holders of the Convertible Bond Debt to elect conversion prior to maturity. Upon conversion of the remaining Convertible Bond Debt, the Company will pay or deliver, as the case may be, either cash, shares of Common Stock or a combination of cash and shares of Common Stock, at the Company’s election, to the holder (subject to shareholder approval requirements in accordance with the indenture that governs the Convertible Bond Debt).
The Company continuously evaluates potential transactions that it expects to be accretive to earnings, enhance shareholder value or are in the best interests of the Company, including without limitation, business combinations, the acquisition of vessels or related businesses, repayment or refinancing of existing debt, the issuance of new securities, share and debt repurchases or other transactions.
Capital Expenditures and Drydocking
Our capital expenditures primarily relate to the purchase of vessels as well as regularly scheduled drydocking and other vessel improvements, which are expected to enhance their revenue earning capabilities, efficiency and/or safety and to comply with international shipping standards and environmental laws and regulations. Certain vessel improvement costs and costs incurred in connection with drydocking are necessary to comply with international shipping standards and environmental laws and regulations, while others are discretionary in nature and evaluated on a business case-by-case basis.
During the fourth quarter of 2022, the Company entered into a memorandum of agreement to acquire a high-specification 2015-built Ultramax bulkcarrier for total consideration of $24.3 million. The vessel was delivered to the Company during the first quarter of 2023.
On January 30, 2023, the Company entered into a memorandum of agreement to acquire a high-specification 2020-built scrubber-fitted Ultramax bulkcarrier for total consideration of $30.1 million. The vessel was delivered to the Company during the second quarter of 2023.
On February 28, 2023, the Company entered into a memorandum of agreement to acquire a high-specification 2020-built scrubber-fitted Ultramax bulkcarrier for total consideration of $30.1 million. The vessel was delivered to the Company during the second quarter of 2023.
Although the Company has some flexibility regarding the timing of vessel drydockings, the timing of costs are relatively predictable. In accordance with statutory requirements, we expect vessels less than 15 years old to be drydocked every 60 months and vessels older than 15 years to be drydocked every 30 months. We intend to fund drydocking costs with cash from operations, cash on hand or with amounts available under the Global Ultraco Debt Facility. In addition, drydocking typically requires us to reposition vessels from a discharge port to shipyard facilities, which will reduce our owned available days and revenues during that period.
Drydocking costs incurred are deferred and amortized through depreciation and amortization on the condensed consolidated statements of operations on a straight-line basis over the period through the date the next drydocking is required to become due. During the nine months ended September 30, 2023, five of our vessels completed drydock and we incurred $10.6 million for drydocking costs. During the nine months ended September 30, 2022, eight of our vessels completed drydock and we incurred $18.5 million for drydocking costs.
Vessel improvements generally include systems and equipment intended to enhance a vessel’s efficiency and revenue earning capability. We intend to fund these costs through cash from operations, cash on hand or amounts available under the Global Ultraco Debt Facility.
The following table provides certain information about the estimated costs for anticipated vessel drydockings and improvements in the next four quarters, along with the anticipated off-hire days:
Projected Costs (1) ($ in millions)
Quarters Ending
Off-hire Days(2)
Drydocks
Vessel Improvements(3)
December 31, 2023
224
$
4.1
$
1.8
March 31, 2024
232
$
4.7
$
0.8
June 30, 2024
143
$
2.0
$
0.4
September 30, 2024
165
$
2.4
$
—
(1
)
We intend to fund these costs with cash from operations, cash on hand or with amounts available under the Global Ultraco Debt Facility.
(2
)
Actual duration of off-hire days will vary based on the age and condition of the vessel, yard schedules and other factors. Projected off-hire days includes an allowance for unforeseen events.
(3
)
Projected costs for vessel improvements are primarily comprised of costs for ballast water treatment systems (“BWTS”).
SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA
The following table summarizes the Company’s selected condensed consolidated financial statements and other data for the periods indicated below.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Revenues, net
$
82,606
$
185,313
$
289,210
$
568,406
Voyage expenses
23,791
40,792
82,737
120,710
Vessel operating expenses
28,822
33,091
91,077
88,213
Charter hire expenses
6,868
19,772
31,014
63,768
Depreciation and amortization
15,472
15,407
45,035
45,241
General and administrative expenses
10,652
9,666
32,871
29,611
Impairment of operating lease right-of-use assets
—
—
722
—
Other operating expense
677
2,469
860
2,643
Gain on sale of vessels
(4,855
)
(9,336
)
(19,731
)
(9,336
)
Total operating expenses, net
81,427
111,861
264,585
340,850
Operating income
1,179
73,452
24,625
227,556
Interest expense
7,714
4,236
16,005
13,021
Interest income
(1,488
)
(881
)
(5,139
)
(1,100
)
Realized and unrealized loss/(gain) on derivative instruments, net
104
(11,293
)
(2,318
)
(13,281
)
Loss on debt extinguishment
—
4,173
—
4,173
Total other expense/(income), net
6,330
(3,765
)
8,548
2,813
Net (loss)/income
$
(5,151
)
$
77,217
$
16,077
$
224,743
Weighted average shares outstanding:
Basic
9,313,051
12,993,450
11,686,433
12,985,329
Diluted
9,313,051
16,201,852
15,057,652
16,219,264
Per share amounts:
Basic net (loss)/income
$
(0.55
)
$
5.94
$
1.38
$
17.31
Diluted net (loss)/income
$
(0.55
)
$
4.77
$
1.36
$
13.86
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data and par values)
September 30, 2023
December 31, 2022
ASSETS:
Current assets:
Cash and cash equivalents
$
113,879
$
187,155
Accounts receivable, net of a reserve of $2,933 and $3,169, respectively
24,594
32,311
Prepaid expenses
5,832
4,531
Inventories
26,881
28,081
Collateral on derivatives
4,380
909
Fair value of derivative assets – current
8,653
8,479
Other current assets
652
558
Total current assets
184,871
262,024
Noncurrent assets:
Vessels and vessel improvements, at cost, net of accumulated depreciation of $289,819 and $261,725, respectively
914,108
891,877
Advances for vessel purchases
—
3,638
Advances for BWTS and other assets
1,984
2,722
Deferred drydock costs, net
37,756
42,849
Other fixed assets, net of accumulated depreciation of $1,324 and $1,623, respectively
952
310
Operating lease right-of-use assets
10,892
23,006
Restricted cash – noncurrent
2,575
2,599
Fair value of derivative assets – noncurrent
5,435
8,184
Total noncurrent assets
973,702
975,185
Total assets
$
1,158,573
$
1,237,209
LIABILITIES & STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
$
20,938
$
20,129
Accrued interest
2,092
3,061
Other accrued liabilities
19,198
24,097
Fair value of derivative liabilities – current
585
163
Current portion of operating lease liabilities
10,109
22,045
Unearned charter hire revenue
8,201
9,670
Current portion of long-term debt – Global Ultraco Debt Facility
49,800
49,800
Current portion of long-term debt – Convertible Bond Debt, net of debt discount and debt issuance costs
103,791
—
Total current liabilities
214,714
128,965
Noncurrent liabilities:
Long-term debt – Global Ultraco Debt Facility, net of debt discount and debt issuance costs
341,881
181,183
Convertible Bond Debt, net of debt discount and debt issuance costs
—
103,499
Fair value of derivative liabilities – noncurrent
444
—
Noncurrent portion of operating lease liabilities
2,766
3,173
Other noncurrent accrued liabilities
696
1,208
Total noncurrent liabilities
345,787
289,063
Total liabilities
560,501
418,028
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none issued as of September 30, 2023 and December 31, 2022
—
—
Common stock, $0.01 par value, 700,000,000 shares authorized, 9,319,177 and 13,003,702 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
93
130
Additional paid-in capital
746,898
966,058
Accumulated deficit
(162,418
)
(163,556
)
Accumulated other comprehensive income
13,499
16,549
Total stockholders’ equity
598,072
819,181
Total liabilities and stockholders’ equity
$
1,158,573
$
1,237,209
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Nine Months Ended
September 30, 2023
September 30, 2022
Cash flows from operating activities:
Net income
$
16,077
$
224,743
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
34,577
35,513
Noncash operating lease expense
17,890
21,083
Amortization of deferred drydocking costs
10,458
9,728
Amortization of debt discount and debt issuance costs
1,958
1,627
Loss on debt extinguishment
—
4,173
Impairment of operating lease right-of-use assets
722
—
Gain on sale of vessels
(19,731
)
(9,336
)
Unrealized loss/(gain) on derivative instruments, net
437
(8,517
)
Stock-based compensation expense
5,680
4,542
Drydocking expenditures
(10,562
)
(18,527
)
Changes in operating assets and liabilities:
Accounts payable
1,381
650
Accounts receivable
7,707
(5,098
)
Accrued interest
(969
)
(1,241
)
Inventories
1,199
(8,622
)
Operating lease liabilities current and noncurrent
(19,570
)
(21,076
)
Collateral on derivatives
(3,471
)
13,881
Fair value of derivatives, other current and noncurrent assets
(141
)
(183
)
Other accrued liabilities
(4,907
)
(2,332
)
Prepaid expenses
(1,301
)
(1,223
)
Unearned charter hire revenue
(1,469
)
2,706
Net cash provided by operating activities
35,965
242,491
Cash flows from investing activities:
Purchase of vessels and vessel improvements
(81,802
)
(781
)
Advances for vessel purchases
—
(4,125
)
Purchase of BWTS
(2,142
)
(5,695
)
Proceeds from hull and machinery insurance claims
174
—
Net proceeds from sale of vessels
56,609
14,944
Purchase of other fixed assets
(670
)
(253
)
Net cash (used in)/provided by investing activities
(27,831
)
4,090
Cash flows from financing activities:
Proceeds from Revolving Facility, net of debt issuance costs – Global Ultraco Debt Facility
123,361
—
Proceeds from Term Facility, net of debt issuance costs – Global Ultraco Debt Facility
73,125
—
Repayment of Term Facility – Global Ultraco Debt Facility
(37,350
)
(37,350
)
Repurchase of Common Stock and associated fees – related party
(222,688
)
—
Repurchase of Convertible Bond Debt
—
(14,188
)
Dividends paid
(15,790
)
(81,577
)
Debt issuance costs paid to lenders – Original Global Ultraco Debt Facility
—
(18
)
Cash paid for taxes related to net share settlement of equity awards
(1,989
)
(2,351
)
Other financing costs paid
(103
)
—
Cash received from exercise of stock options
—
85
Proceeds from equity offerings, net of issuance costs
—
201
Net cash used in financing activities
(81,434
)
(135,198
)
Net (decrease)/increase in cash, cash equivalents and restricted cash
(73,300
)
111,383
Cash, cash equivalents and restricted cash at beginning of period
189,754
86,222
Cash, cash equivalents and restricted cash at end of period
$
116,454
$
197,605
Cash paid for interest
$
22,064
$
12,861
Supplemental Information – Non-GAAP Financial Measures
This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission (“SEC”). We believe these measures provide important supplemental information to investors to use in evaluating ongoing operating results. We use these measures, together with accounting principles generally accepted in the United States (“GAAP” or “U.S. GAAP”) measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations, that when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide and provide a more complete understanding of factors and trends affecting our business. We strongly encourage you to review all of our financial statements and publicly-filed reports in their entirety and to not solely rely on any single non-GAAP financial measure.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.
Non-GAAP Financial Measures
Adjusted net (loss)/income and Basic and Diluted adjusted net (loss)/income per share
Adjusted net (loss)/income and Basic and Diluted adjusted net (loss)/income per share represent Net (loss)/income and Basic and Diluted net (loss)/income per share, respectively, as adjusted to exclude unrealized gains and losses on FFAs and bunker swaps, gains and losses on debt extinguishment, and impairment of operating lease right-of-use assets. The Company utilizes derivative instruments such as FFAs and bunker swaps to partially hedge against its underlying long physical position in ships (as represented by owned and third-party chartered-in vessels). As the Company does not apply hedge accounting to these derivative instruments, unrealized mark-to-market gains and losses on forward hedge positions impact current quarter results, causing timing mismatches in the Condensed Consolidated Statements of Operations. Additionally, we believe that gains and losses on debt extinguishment and impairment of operating lease right-of-use assets are not representative of our normal business operations. We believe that Adjusted net (loss)/income and Adjusted net (loss)/income per share are more useful to analysts and investors in comparing the results of operations and operational trends between periods and relative to other peer companies in our industry. Our Adjusted net (loss)/income should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. As noted above, our Adjusted net (loss)/income and Adjusted net (loss)/income per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted net (loss)/income or Adjusted net (loss)/income per share in the same manner.
The following table presents the reconciliation of our Net (loss)/income to Adjusted net (loss)/income:
Reconciliation of GAAP Net (loss)/income to Adjusted net (loss)/income (in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net (loss)/income
$
(5,151
)
$
77,217
$
16,077
$
224,743
Adjustments to reconcile net (loss)/income to adjusted net (loss)/income:
Unrealized loss/(gain) on FFAs and bunker swaps, net
2,222
(7,124
)
437
(8,517
)
Impairment of operating lease right-of-use assets
—
—
722
—
Loss on debt extinguishment
—
4,173
—
4,173
Adjusted net (loss)/income
$
(2,929
)
$
74,266
$
17,236
$
220,399
Weighted average shares outstanding:
Basic
9,313,051
12,993,450
11,686,433
12,985,329
Diluted (1)
9,313,051
16,201,852
15,057,652
16,219,264
Per share amounts:
Basic adjusted net (loss)/income
$
(0.31
)
$
5.72
$
1.47
$
16.97
Diluted adjusted net (loss)/income
$
(0.31
)
$
4.58
$
1.44
$
13.59
(1
)
Diluted weighted average shares outstanding for the three and nine months ended September 30, 2023 and 2022 includes dilutive potential common shares related to the Convertible Bond Debt based on the if-converted method and potential common shares related to stock awards and options based on the treasury stock method, unless to do so would have been anti-dilutive to Diluted adjusted net (loss)/income per share.
EBITDA and Adjusted EBITDA
We define EBITDA as Net (loss)/income under GAAP adjusted for interest, income taxes and depreciation and amortization.
Adjusted EBITDA is a non-GAAP financial measure that is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating performance as compared to that of other peer companies in our industry, without regard to financing methods, capital structure or historical costs basis. Our Adjusted EBITDA should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner. Adjusted EBITDA represents EBITDA adjusted to exclude certain non-cash, one-time and other items that the Company believes are not indicative of the ongoing performance of its core operations such as vessel impairment, gains and losses on sale of vessels, impairment of operating lease right-of-use assets, unrealized gains and losses on FFAs and bunker swaps, gains and losses on debt extinguishment and stock-based compensation expense.
The following table presents a reconciliation of our Net (loss)/income to EBITDA and Adjusted EBITDA:
Reconciliation of GAAP Net (loss)/income to EBITDA and Adjusted EBITDA (in thousands)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net (loss)/income
$
(5,151
)
$
77,217
$
16,077
$
224,743
Adjustments to reconcile net (loss)/income to EBITDA:
Interest expense
7,714
4,236
16,005
13,021
Interest income
(1,488
)
(881
)
(5,139
)
(1,100
)
Income taxes
—
—
—
—
EBIT
1,075
80,572
26,943
236,664
Depreciation and amortization
15,472
15,407
45,035
45,241
EBITDA
16,547
95,979
71,978
281,905
Non-cash, one-time and other adjustments to EBITDA(1)
(963
)
(10,838
)
(12,892
)
(9,138
)
Adjusted EBITDA
$
15,584
$
85,141
$
59,086
$
272,767
(1
)
One-time and other adjustments to EBITDA for the three and nine months ended September 30, 2023 and 2022 includes gains on sale of vessels, net unrealized losses/(gains) on FFAs and bunker swaps, impairment of operating lease right-of-use assets, loss on debt extinguishment and stock-based compensation expense.
TCE revenue and TCE
Time charter equivalent revenue (“TCE revenue”) and time charter equivalent (“TCE”) are non-GAAP financial measures that are commonly used in the shipping industry primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts. The Company defines TCE revenue as revenues, net less voyage expenses and charter hire expenses, adjusted for realized gains and losses on FFAs and bunker swaps and defines TCE as TCE revenue divided by the number of owned available days. Owned available days is the number of our ownership days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. TCE provides additional meaningful information in conjunction with Revenues, net, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their performance. Our TCE revenue and TCE should not be considered alternatives to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our TCE revenue and TCE may not be comparable to similarly titled measures of another company because all companies may not calculate TCE revenue and TCE in the same manner.
The following table presents the reconciliation of our Revenues, net to TCE:
Reconciliation of Revenues, net to TCE (in thousands, except for Owned available days and TCE)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Revenues, net
$
82,606
$
185,313
$
289,210
$
568,406
Less:
Voyage expenses
(23,791
)
(40,792
)
(82,737
)
(120,710
)
Charter hire expenses
(6,868
)
(19,772
)
(31,014
)
(63,768
)
Realized gain on FFAs and bunker swaps, net
2,118
4,169
2,755
4,764
TCE revenue
$
54,065
$
128,918
$
178,214
$
388,692
Owned available days
4,708
4,588
13,791
13,599
TCE
$
11,482
$
28,099
$
12,922
$
28,582
Adjusted vessel operating expenses and Adjusted DVOE
Adjusted vessel operating expenses and Adjusted DVOE are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements to assess our operating performance as compared to that of other peer companies in our industry. The Company defines Adjusted vessel operating expenses as vessel operating expenses presented in accordance with U.S. GAAP, adjusted to exclude one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of our vessels and discretionary spending associated with hull and hold upgrades and defines Adjusted DVOE as Adjusted vessel operating expenses divided by the number of ownership days. Ownership days is the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Adjusted vessel operating expenses and Adjusted DVOE provide additional meaningful information in conjunction with Vessel operating expenses, the most directly comparable GAAP measure. Our Adjusted vessel operating expenses and Adjusted DVOE should not be considered alternatives to net income/(loss), operating income/(loss), cash flows provided by/(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted vessel operating expenses and Adjusted DVOE may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted vessel operating expenses and Adjusted DVOE in the same manner.
The following table presents the reconciliation of our Vessel operating expenses to Adjusted vessel operating expenses and Adjusted DVOE:
Reconciliation of GAAP Vessel operating expenses to Adjusted vessel operating expenses and Adjusted DVOE (in thousands, except for Ownership days and Adjusted DVOE data)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Vessel operating expenses
$
28,822
$
33,091
$
91,077
$
88,213
Less:
Adjustments to vessel operating expenses(1):
(347
)
(1,371
)
(3,548
)
(1,796
)
Adjusted vessel operating expenses
$
28,475
$
31,720
$
87,529
$
86,417
Ownership days
4,808
4,831
14,425
14,424
Adjusted DVOE
$
5,922
$
6,566
$
6,068
$
5,991
(1
)
Adjustments to vessel operating expenses includes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of our vessels and discretionary spending associated with hull and hold upgrades.
Glossary of Terms
Chartered-in days: We define chartered-in days as the aggregate number of days in a period during which we charter-in vessels under operating leases. The Company charters-in vessels on a long-term and short-term basis.
Owned available days: We define owned available days as the number of ownership days less the aggregate number of days that our owned vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys and other reasons which prevent the vessel from performing under a charter party in a period. The shipping industry uses owned available days to measure the number of days in a period during which owned vessels should be capable of generating revenues.
Ownership days: We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.
Definitions of Capitalized Terms
Convertible Bond Debt: Convertible Bond Debt refers to 5.0% Convertible Senior Notes due 2024 issued by the Company on July 29, 2019 that will mature on August 1, 2024.
Global Ultraco Debt Facility: Global Ultraco Debt Facility refers to the senior secured credit facility entered into by Eagle Bulk Ultraco LLC (“Eagle Ultraco”), a wholly-owned subsidiary of the Company, along with certain of its vessel-owning subsidiaries as guarantors, with the lenders party thereto (the “Lenders”), Credit Agricole Corporate and Investment Bank (“Credit Agricole”) as security trustee, structurer, sustainability coordinator and facility agent. The Global Ultraco Debt Facility provides for an aggregate principal amount of $485.3 million, which consists of (i) a term loan facility in an aggregate principal amount of $300.3 million (the “Term Facility”) and (ii) a revolving credit facility in an aggregate principal amount of $185.0 million (the “Revolving Facility”). The Global Ultraco Debt Facility is secured by 52 of the Company’s vessels. As of September 30, 2023, $54.6 million remains undrawn under the Revolving Facility.
Conference Call Information
As previously announced, members of Eagle’s senior management team will host a teleconference and webcast at 8:00 a.m. ET on Friday, November 3, 2023, to discuss the third quarter results.
A live webcast of the call will be available on the Investor Relations page of the Company’s website at ir.eagleships.com. To access the call by phone, please register at https://register.vevent.com/register/BIee839edd63884046b37812fb660d9ebb and you will be provided with dial-in details. A replay of the webcast will be available on the Investor Relations page of the Company’s website.
About Eagle Bulk Shipping Inc.
The Company is a U.S.-based, fully integrated shipowner-operator, providing global transportation solutions to a diverse group of customers including miners, producers, traders and end users. Headquartered in Stamford, Connecticut, with offices in Singapore and Copenhagen, Eagle focuses exclusively on the versatile midsize drybulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world. The Company performs all management services in-house (strategic, commercial, operational, technical, and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.
Website Information
We intend to use our website, www.eagleships.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, filings with the SEC, public conference calls, and webcasts. To subscribe to our e-mail alert service, please click the “Investor Alerts” link in the Investor Relations section of our website and submit your email address. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.
Disclaimer: Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbor provided for under these sections. These statements may include words such as “believe,” “estimate,” “project,” “intend,” “expect,” “plan,” “anticipate,” and similar expressions in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements in this release reflect management’s current expectations and observations with respect to future events and financial performance. Where we express an expectation or belief as to future events or results, including future plans with respect to financial performance, the payment of dividends and/or repurchase of shares, or future actions of holders of the Convertible Bond Debt, including whether or not to elect to convert any portion of the Convertible Bond Debt prior to its maturity date, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. The principal factors that affect our financial position, results of operations and cash flows include market freight rates, which fluctuate based on various economic and market conditions, periods of charter hire, vessel operating expenses and voyage costs, which are incurred primarily in U.S. dollars, depreciation expenses, which are a function of the purchase price of our vessels and our vessels’ estimated useful lives and scrap value, general and administrative expenses, and financing costs related to our indebtedness. The accuracy of the Company’s assumptions, expectations, beliefs and projections depends on events or conditions that change over time and are thus susceptible to change based on actual experience, new developments and known and unknown risks. The Company gives no assurance that the forward-looking statements will prove to be correct, does not undertake any duty to update them and disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors which could include the following: (i) volatility of freight rates driven by changes in demand for seaborne transportation of drybulk commodities and in supply of drybulk shipping capacity; (ii) changes in drybulk carrier capacity driven by levels of newbuilding orders, scrapping rates or fleet utilization; (iii) changes in rules and regulations applicable to the drybulk industry, including, without limitation, regulations of the International Maritime Organization and the European Union (the “EU”), requirements of the Environmental Protection Agency and other governmental and quasi-governmental agencies; (iv) changes in U.S., United Kingdom, United Nations and EU economic sanctions and trade embargo laws and regulations as well as equivalent economic sanctions laws of other relevant jurisdictions; (v) actions taken by regulatory authorities including, without limitation, the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”); (vi) changes in the typical seasonal variations in drybulk freight rates; (vii) changes in national and international economic and political conditions including, without limitation, the current conflicts between Russia and Ukraine and Israel and Hamas, the current economic and political environment in China and the environment in historically high-risk geographic areas such as the South China Sea, the Indian Ocean, the Gulf of Guinea and the Gulf of Aden; (viii) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking costs); (ix) the duration and impact of the novel coronavirus (“COVID-19”) pandemic and measures implemented by governments of various countries in response to the COVID-19 pandemic; (x) volatility of the cost of fuel; (xi) volatility of costs of labor and materials needed to operate our business due to inflation; (xii) any legal proceedings which we may be involved from time to time; and (xiii) other factors listed from time to time in our filings with the Securities and Exchange Commission (the “SEC”).
We have based these statements on assumptions and analyses formed by applying our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. The Company’s future results may be impacted by adverse economic conditions, such as inflation, deflation, or lack of liquidity in the capital markets, that may negatively affect it or parties with whom it does business. Should one or more of the foregoing risks or uncertainties materialize in a way that negatively impacts the Company, or should the Company’s underlying assumptions prove incorrect, the Company’s actual results may vary materially from those anticipated in its forward-looking statements, and its business, financial condition and results of operations could be materially and adversely affected. Risks and uncertainties are further described in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 10, 2023, as updated by those risks described in Part II, Item 1A of our Quarterly Report on Form 10-Q for the three months ended June 30, 2023, filed with the SEC on August 4, 2023.
CONTACT
Company Contact: Constantine Tsoutsoplides Chief Financial Officer Eagle Bulk Shipping Inc. Tel. +1 203-276-8100 Email: investor@eagleships.com
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Lower shipping rates will push revenues down modestly. We have lowered our 2023-3Q revenue projections modestly to reflect a drop in shipping rates in the later half of the quarter. After a sharp decline in pricing in 2022, the dry bulk shipping market has shown signs of improving several times only to have pricing slip back down. Such was the case in the third quarter which began the period on a high note only to see pricing fall. Issues in China, the war in Ukraine, and general economic malaise are the causes cited most often for pricing weakness.
Lowering non-contracted shipping rates reduces our revenue projections, earnings projections largely unchanged. We have lowered our assumed shipping rate for non-contracted shipping days in the quarter to $16,500 from $17,000. In response, we have lowered our revenue estimate to $24.4 million from $24.8 million. Lower revenues, combined with an increase in stock-based compensation due to a higher SHIP stock price, were offset by the elimination of losses on the extinguishment of debt. The result is only a modest change to our EPS estimate which now calls for an adjusted EPS loss of $0.15 versus our previous estimate of $0.16 per share. We expect the company to report results on November 14th.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
HOUSTON, Oct. 31, 2023 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) today announced that it will release the financial results for its three and nine months ended September 30, 2023 on Tuesday, November 7, 2023 at 7:00 a.m. C.S.T. A conference call with the Company will be held the same day at 9:00 a.m. C.S.T.
Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.
The live call and replay can also be heard at https://edge.media-server.com/mmc/p/u2gfidfp or on the Company’s website, www.gldd.com, under Events on the Investor Relations page. A copy of the press release will be available on the Company’s website.
The Company Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 133-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
For further information contact: Tina Baginskis Director, Investor Relations 630-574-3024
Detroit automaker General Motors (GM) has reached a tentative labor agreement with the United Auto Workers (UAW) union, bringing an end to 6 weeks of strikes that idled tens of thousands of autoworkers across the United States.
The 4-year deal was announced Monday after marathon negotiating sessions over the weekend. It follows similar tentative agreements reached last week by the UAW with Ford Motor Co. and Fiat Chrysler Automobiles.
With contracts now in place with all Detroit Three automakers, the UAW can turn its focus to ratification votes. The agreements are expected to add hundreds of millions in new labor costs, but deliver significant gains to autoworkers who made concessions during the Great Recession to help stabilize the industry.
Key improvements include an accelerated path to top hourly wages of over $32, pay increases of 3-4% each year, cost of living adjustments, $11,000 ratification bonuses, and restored rights to strike over plant shutdowns. The deals also hold healthcare costs steady without increased worker premiums.
For the automakers, the additional labor expenses come as the industry already faces rising costs for technology investments in electric vehicles and autonomy. But the end of strikes brings relief after 6 extremely costly weeks of lost production.
Ford pegged the financial impact of the work stoppage at $1.3 billion. The company expects its new deal to increase per vehicle labor costs by $850-$900. GM lost about $2 billion according to estimates, over $1 billion of that in the United States.
The sacrifices by both sides reflect just how damaging an extended strike could have been. A 2-day strike last year cost GM an estimated $400 million alone. With U.S. auto sales plateauing, neither side could afford an extended plant shutdown.
For Wall Street, the end of uncertainty from the labor disputes will be welcomed. GM stock gained 0.75% Monday after details emerged, while Ford’s share price rose 1.2%. Investors see the short-term costs of the deals as outweighed by the benefits of resumed production and sales.
Moody’s auto analyst Bruce Clark said the deals are “credit negative but containable” for the automakers, allowing them to remain competitive. Labor peace also helps attract talent and productivity gains.
The question now is whether rank-and-file UAW members will ratify the tentative contracts. Ford and GM workers are expected to start voting within 2 weeks, once the agreements are finalized and presented to members.
UAW leaders face pressure to avoid the rejection they suffered in 2015, when Fiat Chrysler workers initially voted down a proposed deal. But the united front displayed by the UAW in pursuing coordinated strikes gives momentum.
With U.S. unemployment at historic lows, workers leveraged a tight labor market and the automakers’ need for labor stability into significant gains after years of minimal increases. For the UAW, it represents a big win and reprieve from scandal.
The new contracts set the stage for a productive new era of labor-management relations in the auto industry, vital to the American manufacturing sector. As the UAW’s most profitable bargaining partners, Detroit now aims to move beyond the strikes and shift focus to the future of transportation.
HOUSTON, Oct. 10, 2023 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) (NASDAQ: GLDD), the largest provider of dredging services in the United States, announced today the delivery of the Cape Hatteras and the Cape Canaveral, the two Damen 3013 Multi Cats built by Conrad Shipyard in Morgan City, LA.
Chris Gunsten, Great Lakes’ Senior Vice President of Project Services and Fleet Engineering, commented on the improvements the Cape Hatteras and Cape Canaveral will represent, “This is a milestone for our Company and the U.S. dredging industry. The Multi Cat brings step change safety improvements to Great Lakes’ dredge pipeline operations, which was a prime driver for the investment. Pipe handling and connection work can now take place securely on deck, which will greatly reduce the risk of man overboards. These vessels will also enhance and improve Great Lakes’ pipe and anchor operations. Further, the Multi Cats’ two crane and multiple winch and wire tugger arrangements will significantly reduce manual work and the risk of soft tissues injuries. These vessels support our strong safety culture and gives us the ability to dredge with enhanced operating efficiencies needed to maintain our shorelines and waterways.”
The two identical vessels measure approximately 99 feet in length and are each powered by three EPA Tier III Caterpillar C32 TTA engines capable of meeting speeds of 10.2 knots and will have maximum bollard pull of approximately 32 short tons. Equipped with two large winches and two deck cranes they are ideal dredge support vessels with the ability to perform a wide range of tasks including handling submerged and floating pipelines as well as anchor handling and logistics supply. Efficiency is also greatly enhanced by eliminating the need for assorted floating support equipment such as derrick barges, towboats and anchor barges.
The two vessels are the first Damen Multi Cats to be built in the U.S. and are fully compliant with the U.S. Coast Guard and U.S. Army Corps of Engineers stability criteria.
The Company Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 133-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release may constitute “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Exchange Commission (the “SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Great Lakes and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. These cautionary statements are being made pursuant to the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Great Lakes cautions investors that any forward-looking statements made by Great Lakes are not guarantees or indicative of future events.
Although Great Lakes believes that its plans, intentions and expectations reflected in this press release are reasonable, actual events could differ materially. The forward-looking statements contained in this press release are made only as of the date hereof and Great Lakes does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.
For further information contact: Tina Baginskis Director, Investor Relations 630-574-3024
STAMFORD, Conn., Sept. 28, 2023 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (NYSE: EGLE) (“Eagle Bulk”, “Eagle”, or the “Company”), one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced today that it will report its financial results for the third quarter ending September 30, 2023, after the close of stock market trading on November 2, 2023. Members of Eagle’s senior management team will host a call at 8:00 a.m. ET on Friday, November 3, 2023 in order to discuss company results and provide an update on market fundamentals.
A live webcast of the call will be available on the Investor Relations page of the Company’s website at ir.eagleships.com. To access the call by phone, please register at https://register.vevent.com/register/BIee839edd63884046b37812fb660d9ebb and you will be provided with dial-in details. A replay of the webcast will be available on the Investor Relations page of Eagle’s website.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a US-based, fully integrated shipowner-operator providing global transportation solutions to a diverse group of customers including miners, producers, traders, and end users. Headquartered in Stamford, Connecticut, with offices in Singapore and Copenhagen, Eagle focuses exclusively on the versatile midsize drybulk vessel segment and owns one of the largest fleets of Supramax / Ultramax vessels in the world. The Company performs all management services in-house (including strategic, commercial, operational, technical, and administrative) and employs an active-management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.
