Paragon Shipping Inc · OTC:PRGNF
Paragon Shipping — Investor Presentation (December 2013)
23 slides from Paragon Shipping's investor presentation, December 2013
Slide 1: Investor Presentation
Investor Presentation December 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Acts. Forward-looking statements reflect management's current views with respect to future events and financial performance and may incl
Slide 3: Company Overview
Company Overview Paragon Shipping Inc. – NASDAQ GM: PRGN • Completed IPO in August 2007 • Paragon’s subsidiary, Box Ships Inc. (NYSE: TEU), successfully completed its IPO in April 2011 • Strong management with a meaningful stake. CEO owns 38.1% of the common stock of Paragon and 12.2% of Box Ships C
Slide 4: Recent Highlights
Recent Highlights Third Quarter Financial Performance: • Net Revenue: $13.4 m. • Adjusted EBITDA: $ 5.7 m. • Adjusted Net Loss: $ 0.4 m. Completed a $34.5 m. equity offering, the proceeds of which were used for fleet expansion and growth. On October 18, 2013, Box Ships proceeded with the full repaym
Slide 5: Eco-Designed Newbuildings
Eco-Designed Newbuildings 63,500 dwt each – 31% increase to dwt fleet size Reduction in fleet age from 7.8 to 6.7 years (1) on a fully-deployed basis Expected Fuel Consumption < 10% & Cargo Capacity >20% (1) Assumes the delivery of all the vessels that are currently under construction Visual Graph S
Slide 6: Financing Update
Financing Update M.V. adjusted leverage ratio of 46% (3) Newbuilding program: •$25.4 million remaining under Nordea Facility (Hulls no. 612 and 625) •Credit facility with CDB (1) •Intend to secure credit facility for the Ultramax newbuildings prior to delivery Leverage Ratio (2) Scheduled Loan Repay
Slide 7: Chartering Update
Chartering Update Spot exposure – significant upside potential Average age of Operating Fleet – 7.8 years vs 9.4 years World Average Rem ainder Y ear Built F leet A g e DW T / T EU 2014 2015 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Kind S eas 1999 14 72,493 Diam ond S eas 2001 12 74,274 P earl S eas
Slide 8: Chartering Performance
Chartering Performance Consistently beating market since 2009 USD Per Day (USD per day) 2009 2010 2011 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 PRGN TCE Rate 30,942 25,911 21,312 14,030 11,866 11,574 10,563 11,388 10,476 9,274 QTD Blended Avg. TC Routes 18,643 24,336 14,110 8,122 9,814 7,480 6,709 7,
Slide 9: Drybulk Market
Drybulk Market TC Rates: Significant improvement in rates starting in 3Q13 Asset Values: Sentiment is improving - vessel values increasing Average T/C Routes (USD Per Day) 5 Year Old Secondhand Prices (USD Million) 50,000 Capesize 50 Panamax 40,000 Supramax 40 Handysize 30,000 30 20,000 20 10,000 10
Slide 10: Demand Fundamentals
Demand Fundamentals Drybulk market growing by 5% CAGR in volumes through 2014 5,000 14% 12% Iron Ore 4,000 10% Million Tonnes Steam Coal 8% 3,000 Coking Coal 6% Grain 4% 2,000 Bauxite / Alumina 2% Phosrock 1,000 0% Minor Bulks -2% Growth 0 -4% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f
Slide 11: Supply Fundamentals
Supply Fundamentals Drybulk orderbook is contracting – currently stands at 20% of existing fleet Full year 2012: 99 million dwt delivered vs 34 million dwt scrapped (or 34%) 9M13: 48 million dwt delivered vs 17 million dwt scrapped (or 36%) Outstanding Orderbook by Vessel Type Global Fleet vs Orderb
Slide 12: Financial Performance – 3Q & 9 Months 2013
Financial Performance – 3Q & 9 Months 2013 Q3 2 0 1 3 Q3 2 0 1 2 9M 2013 9M 2012 Average No. of Vessels 13.0 12.0 12.9 10.9 Time Charter Equivalent rate $ 9,274 $ 11,574 $ 10,360 $ 12,418 Fleet Utilization 99.0% 99.5% 99.6% 99.5% Net Revenue $ 13.4 m $ 12.9 m $ 40.7 m $ 37.4 m EBITDA ($ 1.4 m) ($ 12
Slide 13: Operating Performance – 3Q13 vs 3Q12
Operating Performance – 3Q13 vs 3Q12 3 Q1 3 3 Q1 2 %Δ F leet Data Average num ber of vessels 1 3 .0 1 2 .0 8 .3 % C alendar days for fleet 1 ,1 9 6 1 ,1 0 4 8 .3 % Available days for fleet 1 ,1 9 6 1 ,1 0 4 8 .3 % Operating Days for fleet 1 ,1 8 4 1 ,0 9 8 7 .8 % F leet utiliz ation ex cluding DD da
Slide 14: Investment Summary
Investment Summary Drybulk Market • Market remains challenging, but a recovery has begun. • Increased scrapping and reduced orderbook will speed up recovery. • A gradual recovery is expected. Paragon Shipping Inc. • Fleet Growth: Six expected deliveries through 2015 (4 in 2014 and 2 in 2015). The Ul
Slide 15: Investor Relations / Media Contacts
Investor Relations /Media: Company: Allen & Caron Inc. Paragon Shipping Inc. Rudy Barrio (Investors) Robert Perri, CFA Tel: (212) 691-8087 Chief Financial Officer Email: r.barrio@allencaron.com 15 Karamanli Ave. Len Hall (Media) GR 166 73, Voula, Greece Tel: (949) 474-4300 Tel: +30 (210) 8914 600 Em
Slide 16: Appendices
Appendices Slide 16 Paragon Shipping Inc.
Slide 17: Statement of Operations - 3Q 2013 vs 3Q 2012
Statement of Operations - 3Q 2013 vs 3Q 2012 (US$ 000's) 3 Months Ended 3 Months Ended Sep. 30, 2013 Sep. 30, 2012 Revenue Charter revenue $14,112 $13,680 Commisssions (759) (751) Net Revenue 13,354 12,929 Expenses / (Income) Voyage expenses, net 2,373 221 Vessel operating expenses 5,159 5,205 Manag
Slide 18: Statement of Operations - 9M 2013 vs 9M 2012
Statement of Operations - 9M 2013 vs 9M 2012 (US$ 000's) 9 Months Ended 9 Months Ended Sep. 30, 2013 Sep. 30, 2012 Revenue Charter revenue $43,021 $39,537 Commisssions (2,336) (2,181) Net Revenue 40,685 37,356 Expenses / (Income) Voyage expenses, net 5,026 351 Vessel operating expenses 15,754 14,030
Slide 19: Statement of Operations Adjustments
Statement of Operations Adjustments 3 M on t hs E n ded 3 M on t hs E n ded 9 M on t hs E n ded 9 M on t hs E n ded Sep. 30, 2013 Sep. 30, 2012 Sep. 30, 2013 Sep. 30, 2012 Adjusted Net Loss Reconciliation (US$ 000's) Net Los s ( 7,499) ( 18,785) ( 10,993) ( 17,886) Loss on investment in affiliate 5,
Slide 20: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement (US$ 000's) September 30, December 31, 2013 2012 Cash and restricted cash (current and non-current) 54,246 27,687 Vessels, net 310,393 298,376 Advances for vessel acquisitions / under construction 27,946 49,593 Other fixed assets, net 523 498 Investment in equity
Slide 21: Operating Fleet & Newbuilding Program
Operating Fleet & Newbuilding Program Operating Fleet Newbuilding Program Expected Hull No. & Type DWT / TEU Country of Build Delivery Name & Type DWT Year Built Country of Build Drybulk Ultramax Panamax Fleet DY152 63,500 DWT China Q2 2014 Calm Seas 74,047 1999 Japan DY153 63,500 DWT China Q3 2014
Slide 22: Current Fleet Employment
Current Fleet Employment PARAGON FLEET EMPLOYMENT VESSEL CHARTERER GROSS HIRE DURATION T/C COMMENCED T/C EXPIRES PANAMAX FLEET Calm Seas Intermare Transport GmbH $ 11,800 19-24 Months Mar-12 Dec-13 / Mar-14 Deep Seas DS Norden A/S $ 11,000 About 45 Days Nov-13 Jan-14 Kind Seas Cargill International
Slide 23: Dry-dockings 2014 - 2015
Dry-dockings 2014 - 2015 Vessel Next DD Estimated Estimated (1) Type Quarter Budget Offhire Days (1) Calm Seas Panamax Q1 2014 $ 750,000 18 Deep Seas Panamax Q1 2014 $ 750,000 18 Pearl Seas Panamax Q1 2014 $ 750,000 18 Coral Seas Panamax Q2 2014 $ 750,000 18 Dream Seas Panamax Q2 2014 $ 750,000 18 G
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