Business
Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended March 31, 2023
NEWPORT, R.I., May 10, 2023 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (NASDAQ: PANL), a global provider of comprehensive
About this update from Pangaea Logistics Solutions Ltd.
[{"type":"text","content":"NEWPORT, R.I., May 10, 2023 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. (\"Pangaea\" or the \"Company\") (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended March 31, 2023.\n\n \n \n \n \n \n \n\n \nFIRST QUARTER 2023 RESULTS(As compared to the first Quarter 2022)\nNet income attributable to Pangaea of $3.5 million, or $0.08 per diluted shareAdjusted net income attributable to Pangaea of $5.1 million, or $0.11 per diluted shareOperating cash flow of $11.6 million, a decrease of 64% y/yAdjusted EBITDA of $16.2 million, a decrease of 48% y/yTime Charter Equivalent (\"TCE\") rates earned by Pangaea of $14,372 per day, a decline of 46% y/yPangaea's TCE rates exceeded the average Baltic Panamax and Supramax indices by approximately 48%Cash and cash equivalents of $129.1 million, an increase of $59.2 million y/yRatio of net debt to trailing twelve-month Adjusted EBITDA of 1.3xFor the first quarter ended March 31, 2023, Pangaea reported non-GAAP adjusted net income of $5.1 million, or $0.11 per diluted share, on total revenue of $113.7 million. First quarter TCE rates declined 46% on a year-over-year basis, while total shipping days, which include both voyage and time charter days, declined 17% to 3,958 days, when compared to the year-ago period.\nThe TCE earned was $14,372 per day for the three months ended March 31, 2023, compared to an average of $26,472 per day for the same period in 2022. During the first quarter 2023, the Company's average TCE rate exceeded the benchmark average Baltic Panamax and Supramax indices by approximately 48%, supported by Pangaea's long-term contracts of affreightment (\"COAs\"), specialized fleet, and cargo-focused strategy.\nTotal Adjusted EBITDA decreased 48% to $16.2 million in the first quarter, as seasonal demand weakness negatively impacted market rates. Adjusted EBITDA margin declined 204 basis points to 14.3% in the first quarter 2023, when compared to the year-ago period, driven by lower market rates. After bottoming in February 2023 at $6,200/day, market rates increased to over $13,000/day in April 2023, an increase of 110%. Pangaea currently anticipates a further strengthening in market rates during the second quarter of 2023, given a combination of improved seasonal demand, strengthening activity in Asi...