Pangaea Logistics Solutions Ltd. · NASDAQ:PANL
Pangaea Logistics Solutions — Q2 2018 Earnings Presentation
13 slides from Pangaea Logistics Solutions's earnings presentation, Aug 7, 2018
Slide 1: Second Quarter 2018 Earnings Conference Call Presentation
SECOND QUARTER 2018 EARNINGS CONFERENCE CALL PRESENTATION 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea’s and manage
Slide 3: Logistics services and integrated chartering solutions provide attractive returns
PANGAEA LOGISITICS SOLUTIONS LTD. Logistics services and integrated chartering solutions provide attractive returns 3
Slide 4: Pangaea concentrates on cargo movements
PANGAEA LOGISITICS SOLUTIONS LTD. Pangaea concentrates on cargo movements to: • Identify movements that require our expertise in logistics and operations • Capitalize on movements where we can utilize our specialized fleet • Reduce ballast legs and other costs • Assist customers in unique or difficu
Slide 5: Business Highlights Q2-2018 Results
BUSINESS HIGHLIGHTS Q2-2018 Results (1) •Adjusted EBITDA of $13.7 million Consistent •Net income of $5.8 million improvement •Income from operations of $8.4 million Fleet •2006 built Panamax delivered on August 1, 2018 Working Fleet •21 drybulk ships and one barge in owned and controlled fleet Opera
Slide 6: Drivers of Performance
DRIVERS OF PERFORMANCE Customer Focus: Long-term, fixed contract employment and recurring business with new and longstanding customers Targeted Business: Specialty tonnage provides superior returns – 27% premium over average market rates in Q2 – 2018 Rate Environment: The Baltic Dry Index average fo
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS • 71% increase in net revenue, reflecting improvement in market fundamentals • Dramatic increases in working capital and operating cash flows • Strategic use of equity in owned vessels to raise cash for investment in high quality ships 7
Slide 8: Selected Income Statement Data
SELECTED INCOME STATEMENT DATA (in thousands) Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Voyage revenue $ 81,848 $ 80,231 $ 152,167 $ 157,919 Charter revenue 14,976 11,193 23,630 17,959 96,823 91,424 175,796 175
Slide 9: Selected Balance Sheet & Cash Flow Data
SELECTED BALANCE SHEET & CASH FLOW DATA (in thousands) June 30, 2018 December 31, 2017 Current Assets (unaudited) Cash and cash equivalents $ 48,920 $ 34,532 Accounts receivable, net 18,383 21,089 Other current assets 32,553 27,389 Total current assets 99,855 83,010 Restricted cash 3,500 4,000 Fixed
Slide 10: Total Shipping Days
TOTAL SHIPPING DAYS 6,000 5,000 4,000 3,741 3,461 3,000 3,193 2,645 Days 2,914 2,683 2,366 1,904 2,000 1,000 1,564 1,575 1,620 1,638 1,288 1,288 1,428 1,468 - Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Owned Days Charter-in Days Capital Efficiency: Leveraged owned fleet by chartering-in market
Slide 11: Pangaea TCE v. Average Market TCE
PANGAEA TCE v. AVERAGE MARKET TCE Premium over Market Market Average* $16,000 $14,000 25% 27% 10% 22% $2,772 $2,951 $12,000 30% $1,180 $2,107 $10,000 $2,632 $8,000 $6,000 $11,330 $11,077 $10,777 $9,715 $4,000 $8,701 $2,000 $- Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 Pangaea TCE $11,333 $11,
Slide 12: Financial Performance Q3-2016 through Q2-2018
FINANCIAL PERFORMANCE Q3-2016 THROUGH Q2-2018 1) Adjusted EBITDA is a non-GAAP measure and represents income or loss from operations before depreciation and amortization, loss on sale and leaseback of vessels, and when applicable, loss on impairment of vessels and certain non-recurring items. 2) TCE
Slide 13: Adjusted Earnings per Common Share
ADJUSTED EARNINGS PER COMMON SHARE Adjusted EPS LTM total $0.54 per share Adjusted EPS* 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 *Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on
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