Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended March 31, 2021 - PRNewswire

NEWPORT, R.I., May 11, 2021 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended March 31, 2021.


1st Quarter Highlights



  • Net income attributable to Pangaea Logistics Solutions Ltd. was $5.9 million for three months ended March 31, 2021 as compared to $6.8 million of net loss for the same period of 2020.
  • Non-GAAP adjusted net income attributable to Pangaea Logistics Solutions Ltd. of $3.8 million as compared to adjusted net loss of $4.0 million for the three months ended March 31, 2020.


Diluted net income per share was $0.13 for three months ended March 31, 2021 as compared to loss per share of $0.16 for the same period of 2020.
Pangaea's TCE rates were $16,524 for the three months ended March 31, 2021 and $10,508 for the three months ended March 31, 2020.
Adjusted EBITDA of $11.7 million for the three months ended March 31, 2021, as compared to $2.9 million for the same period of 2020.
At the end of the quarter, Pangaea had $42.0 million in cash and cash equivalents.

Subsequent Business Update



  • On May 10, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.035 per common share, to be paid on June 15, 2021, to all shareholders of record as of June 1, 2021.

  • On May 11, 2021, the Company signed a memorandum of agreement to acquire a 2013 Tsuneishi-built 58,000 dwt dry bulk vessel for $17.8 million.


Ed Coll, Chief Executive Officer of Pangaea Logistics Solutions, commented:


"The start of 2021 was a welcomed surprise, as we've seen freight rates rise to multi year highs in a quarter that is usually a weak one for the dry bulk market. Our first quarter results improved considerably year over year, as our average TCE earned of $16,524 increased approximately 57% compared to the first quarter of 2020 and we generated net income of $5.8 million and EPS of $0.13 for the first quarter of 2021."


Mr. Coll added, "We continue to take steps to position the company to capitalize on a recovering dry bulk market while executing on our cargo focused chartering strategy and expanding our operating leverage. We deployed our capital to acquire modern fuel efficient vessels reducing the average age of our fleet. Within the quarter we announced the acquisition of two second hand vessels, the MV Bulk Courageous and MV Bulk Promise. Today, we are pleased to announce the acquisition of a 2013 Tsuneishi built Supramax which will bring our owned fleet to 25 vessels following the delivery and completion of our Ice class newbuildings, starting later this month."


Mr. Coll concluded, "We hope the worst of the COVID-19 pandemic is behind us. We continue to watch for localized disruptions around the globe and thank our employees across our offices and especially our crew aboard vessels for their continued hard work and dedication. Collectively, we are encouraged by the outlook of the dry bulk market.  Newbuilding orders remain low, demand is  improving following the Covid-19 lockdowns globally, and the positive momentum of the first quarter has so far continued into the second quarter.  We will continue to be opportunistic in expanding our platform in ways that add value for our customers and, in turn, to enhance shareholder value. Our increased dividend distribution demonstrates our confidence in our business and our desire to return some of our profits to our shareholders."


Results for the three months ended March 31, 2021 and 2020


Total revenue was $125.0 million for the three months ended March 31, 2021, compared with $95.9 million for the three months ended March 31, 2020. The 30% increase in revenues was mainly attributed to the increase in the average TCE rates achieved by our vessels during the first quarter of 2021 compared to the same period in 2020.


Time Charter Equivalent rate (TCE) was $16,524 per day for the three months ended March 31, 2021, compared to an average of $10,508 per day for the same period in 2020. The achieved premium over the average market TCE rate was $263 per day or 2% for the three months ended March 31, 2021 compared to 78% in the same period in 2020. The total number of shipping days remained relatively consistent with a  2% increase to 4,668 days in the three months ended March 31, 2021, compared to 4,576 for the same period in 2020.


Liquidity and Cash Flows


Cash, restricted cash and cash equivalents were $42.0 million as of March 31, 2021, compared with $48.4 million on December 31, 2020.


At March 31, 2021 and December 31, 2020, the Company had working capital of $49.7 million and $2.2 million, respectively. Net cash provided by operating activities during the three months ended March 31, 2021 was $4.9 million compared to net cash used in operating activities of $6.8 million for the three months ended March 31, 2020.


Net cash used in investing activities during the three months ended March 31, 2021 was $5.5 million compared to net cash provided by investing activities of $7.5 million for the same period in 2020. During the three months ended March 31, 2021, the Company had made deposits of $5.2 million for two vessel acquisitions as compared to the Company receiving $8.4 million in proceeds from the sale of two vessels in the same period of 2020.


Net cash used in financing activities during the three months ended March 31, 2021 was $5.9 million and $11.2 million for the same period of 2020. During the three months ended March 31, 2021 and 2020, net cash used to repay long-term debt was $3.0 million and $3.3 million, respectively, net cash used to repay finance lease was $1.7 million and $7.4 million, respectively and the Company made cash dividend payments of $0.9 million and $0.5 million, respectively.


Subsequent Events


On April 26, 2021, NBHC entered into a new Senior Secured Term Loan Facility with two new lenders. The agreement advanced $53.0 million in respect of the m/v Nordic Oshima, m/v Nordic Olympic, m/v Nordic Odin and m/v Nordic Oasis. The agreement requires repayment of the advance in 23 equal quarterly principal installments of $1,180,000 beginning on June 15, 2021 and a balloon payment of $25,860,000 due in March 2027. Interest on this advance is fixed at 3.375% effective May 5, 2021. The Loan is secured by a first lien on m/v Nordic Bulk Oshima, m/v Nordic Bulk Odin, m/v Nordic Bulk Olympic and m/v Nordic Bulk Oasis. The Company used a portion of the proceeds of the loan to repay the outstanding balance of $50.0 million for the Nordic Oshima, Nordic Odin, Nordic Olympic and Nordic Oasis loan facilities which was set to mature on October 1, 2021.


On April 8, 2021 the Company took delivery m/v Bulk Courageous, a 2013 Imabari-built 61,000 dwt dry bulk vessel.


Conference Call Details


The Company's management team will host a conference call to discuss the Company's financial results on May 12, 2021 at 8:00 a.m., Eastern Time (ET). To access the conference call, please dial (888) 895-3561 (domestic) or (904) 685-6494 (international) approximately ten minutes before the scheduled start time and reference ID#7074367.


A supplemental slide presentation will accompany this quarter's conference call and can be found attached to the Current Report on Form 8-K that the Company filed concurrently with this press release. This document will be available at http://www.pangaeals.com/company-filings or at sec.gov.


A recording of the call will also be available for two weeks and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international) and referencing ID#7074367.










































































































































































































































































Pangaea Logistics Solutions Ltd.
Consolidated Statements of Operations
(unaudited)


 




Three Months Ended March 31,




2021




2020



Revenues:






Voyage revenue



$



108,230,303





$



86,523,891




Charter revenue



16,742,224





9,356,046




Total revenue



124,972,527





95,879,937




Expenses:






Voyage expense



47,838,857





47,795,912




Charter hire expense



53,635,342





32,325,447




Vessel operating expense



8,495,503





9,933,862




General and administrative



4,204,898





3,993,243




Depreciation and amortization



4,419,094





4,242,251




Gain on sale of vessels







(77,990)




Total expenses



118,593,694





98,212,725








Income (loss) from operations



6,378,833





(2,332,788)








Other (expense) income:






Interest expense, net



(2,227,471)





(2,116,320)




Unrealized gain (loss) on derivative instruments, net



2,022,372





(2,917,094)




Other income



333,458





596,556




Total other income (expense), net



128,359





(4,436,858)








Net income (loss)



6,507,192





(6,769,646)




Income attributable to non-controlling interests



(653,021)





(25,729)




Net income (loss) attributable to Pangaea Logistics Solutions Ltd.



$



5,854,171





$



(6,795,375)








Earnings (loss) per common share:






Basic



$



0.13





$



(0.16)




Diluted



$



0.13





$



(0.16)








Weighted average shares used to compute earnings per common share:






Basic



43,971,352





43,341,005




Diluted



44,549,286





43,341,005






















































































































































































































































































Pangaea Logistics Solutions Ltd.
Consolidated Balance Sheets


 




March 31, 2021




December 31, 2020




(unaudited)





Assets






Current assets






Cash and cash equivalents



$



42,018,873





$



46,897,216




Restricted cash







1,500,000




Accounts receivable (net of allowance of $1,570,824 and $1,896,038 at March 31, 2021 and December 31, 2020, respectively)



29,253,904





29,152,153




Bunker inventory



15,627,975





15,966,247




Advance hire, prepaid expenses and other current assets



23,738,629





19,515,945




Total current assets



110,639,381





113,031,561








Fixed assets, net



278,565,731





276,741,751




Investment in newbuildings in-process



15,390,635





15,390,635




Finance lease right of use assets, net



45,571,435





45,240,198




Total assets



$



450,167,182





$



450,404,145








Liabilities and stockholders' equity






Current liabilities






Accounts payable, accrued expenses and other current liabilities



$



29,302,643





$



32,400,288




Related party debt



242,852





242,852




Deferred revenue



13,652,258





12,799,561




Current portion of secured long-term debt



10,632,079





57,382,674




Current portion of finance lease liabilities



7,004,038





6,978,192




Dividend payable



98,864





1,005,763




Total current liabilities



60,932,734





110,809,330








Secured long-term debt, net



88,306,718





44,507,708




Finance lease liabilities, net



48,764,697





50,520,294




Long-term liabilities - other



10,406,074





10,135,408








Commitments and contingencies










Stockholders' equity:






Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or outstanding










Common stock, $0.0001 par value, 100,000,000 shares authorized; 45,572,236 shares issued and outstanding at March 31, 2021; 45,447,751 shares issued and outstanding at December 31, 2020



4,557





4,545




Additional paid-in capital