Pangaea Logistics Solutions Ltd. · NASDAQ:PANL
Pangaea Logistics Solutions — Q4 2018 Earnings Presentation
13 slides from Pangaea Logistics Solutions's earnings presentation, Mar 20, 2019
Slide 1: Fourth Quarter 2018 Earnings Conference Call Presentation
FOURTH 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 Q4-2018 Results
BUSINESS HIGHLIGHTS Q4-2018 Results (1) •Adjusted EBITDA of $12.2 million Consistent •Income from operations of $7.7 million •Net loss of $0.6 million reflects unrealized loss on Performance derivatives of $4.3 million Fleet Working Fleet •20 drybulk ships and one barge in owned and controlled fleet
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 – 24% premium over average market rates in Q4 – 2018 Rate Environment: The Baltic Dry Index average wa
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS • 14% increase in net revenue, reflecting improvement in market fundamentals • Significant increase 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 December 31, Year ended December 31, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Voyage revenue $ 85,774 $ 86,075 $ 319,753 $ 337,683 Charter revenue 16,055 16,111 53,217 47,405 101,829 102,186 372,970
Slide 9: Selected Balance Sheet & Cash Flow Data
SELECTED BALANCE SHEET & CASH FLOW DATA (in thousands) December 31, 2018 December 31, 2017 Current Assets Cash and cash equivalents $ 53,615 $ 34,532 Accounts receivable, net 28,482 21,089 Other current assets 31,410 27,389 Total current assets 113,506 83,010 Restricted cash 2,500 4,000 Fixed assets
Slide 10: Total Shipping Days
TOTAL SHIPPING DAYS Capital Efficiency: Leveraged owned fleet by chartering-in market vessels Flexibility: Short-term charters allow us to react quickly and take advantage of arbitrage opportunities 10
Slide 11: Pangaea TCE v. Average Market TCE
PANGAEA TCE v. AVERAGE MARKET TCE $16,000 24% 30% 32% 21% $14,000 21% 15% $2,801 26% $2,440 $12,000 $3,187 $3,355 35% $1,605 16% $2,471 $10,000 $2,958 $1,367 $8,000 $6,000 $11,395 $11,559 $10,905 $10,662 $10,373 $9,351 $4,000 $8,578 $8,375 $2,000 $- Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018
Slide 12: Financial Performance Q1-2017 through Q4-2018
FINANCIAL PERFORMANCE Q1-2017 THROUGH Q4-2018 ADJUSTED EBITDA(1) TCE (2) $16,000 18,000,000 16,000,000 $14,000 14,000,000 $12,000 12,000,000 $10,000 10,000,000 $8,000 8,000,000 $6,000 6,000,000 4,000,000 $4,000 2,000,000 $2,000 - $- Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-17 Q2-17 Q3-17 Q
Slide 13: Adjusted Earnings Per Common Share
ADJUSTED EARNINGS PER COMMON SHARE Adjusted EPS total of $0.81 since Q3 2017 Adjusted EPS (1) 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 - Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 (1) Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when appl
Pangaea Logistics Solutions — Q4 2018 Earnings Presentation on 6ix