Paragon Shipping Inc · OTC:PRGNF
Paragon Shipping — Q1 2010 Earnings Presentation
25 slides from Paragon Shipping's earnings presentation, May 2010
Slide 1: Paragon Shipping Inc. Earnings Conference Call
Paragon Shipping Inc. EARNINGS CONFERENCE CALL
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: Agenda
Agenda 1Q10 Financial Highlights Company Update Industry Overview Financial Overview & Investment Summary Slide 3
Slide 4: Q1 2010 Financial Highlights
Q110 Financial Highlights 1 st Quarter 2010 2009 Time Charter Revenues $31.4m $41.6m Net Income $9.2m $19.2m Adjusted Net Income $8.1m $14.7m EBITDA $19.6m $31.8m EBITDA Adjusted $17.8m $26.7m EPS $ 0.18 $ 0.71 EPS Adjusted $ 0.16 $ 0.54 No. of Vessels 11.2 12.0 Average Daily TCE Rate Adjusted $ 26,
Slide 5: Company Update
Company Update Slide 5 ines Paragon Shipping Inc. ass!
Slide 6: Modern & Versatile Fleet - Including Newbuildings
Modern & Versatile Fleet - Including Newbuildings Average age of Paragon’s current fleet - 7.5 years Including newbuildings, 16 vessels of total 1,033,034 Dwt World 8.3 years Kamsarmax Newbuildings – Delivery in 2012 World 12.4 years Panamax 6.8 years World 5.2 years Supramax 3.6 years World 17.2
Slide 7: Chartering Update
Chartering Update Resilience to changing market conditions 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 C lean Seas C rystal Seas Golden Seas Deep Seas Kind Seas C oral Seas C alm Seas Sapphire Seas Dream Seas ( 1) Diam ond Seas Pearl Seas F riendly Seas F ix ed Days Open Day
Slide 8: Superior Chartering Performance
Time Charter Rates Superior Chartering Performance 40,000 Estimation 30,000 US$ Per Day 20,000 10,000 0 1Q09 2Q09 3Q09 4Q09 FY10 FY11 Paragon Average Daily TC Rate Panamax 3 Year Timecharter Rate FFA Rates are used for the estimation of Spot Revenue for the years 2010 and 2011 Source: Clarkson’s Re
Slide 9: Cash Generation and Leverage
Cash Generation and Leverage $73 million of debt repayments in 2010-11 $35 million of free cash flow to be generated in 2010-11 Estimated access to liquidity of $200 million Estimated Free Cash Flow Projections Leverage Ratios 2010E 2011E Market Capitalization $ 250 m EBITDA $ 74 m $ 57 m Total D
Slide 10: Dream Seas
Dream Seas Technical Specifications Charter Recap Builder: Hudong Zhonghua Shipbuilding Group, Shanghai Charterer: Intermare Transport GMBH Deadweight: About 75,151 mts on about 4.217m draft Gross Hire per day: $ 20,000 Commissions: 6.25% Main Dimensions: Net Hire per day: $ 18,750 LOA: 225.00 M Per
Slide 11: Newbuildings
Newbuildings Type Vessel Name DWT LOA Draft Country of Build Delivery Date Hull no. 619 Kamsarmax 82,000 229.0 m 14.5 m China Q2 2012 Hull no. 622 Kamsarmax 82,000 229.0 m 14.5 m China Q3 2012 Hull no. 604 Handysize 37,200 189.9 m 10.5 m China Q4 2011 Hull no. 605 Handysize 37,200 189.9 m 10.5 m Chi
Slide 12: Industry Overview
Industry Overview Slide 12 Paragon Shipping Inc. uy
Slide 13: Seaborne Trade Update
Seaborne Trade Update Steel Production – Millions of Tons Hot Rolled Steel Price vs. Iron Ore Imports Iron Ore Imports – Millions of Tons Chinese Iron Ore Stocks – Millions of Tons Source: Clarkson Research Slide 13
Slide 14: Orderbook & Deliveries
Orderbook & Deliveries 2009 & 2010 120 Order Book 2010 100 Actual Deliveries 2010 80 Scheduled till Mar 2010 – 7% 60 of World Fleet as of Dec 09 Million dwt 40 Delivered till Mar 2010 – 4% of World Fleet as of Dec 09 20 0 Source: RS Platou, Lloyds List, SSY Research Slide 14
Slide 15: Financial Overview
Financial Overview Slide 15 Paragon Shipping Inc. uy
Slide 16: Income Statement Q1 2010
Income Statement Q110 Adjustments Adjusted US$ 000's 3 Months Ended 3 Months Ended 3 Months Ended Mar. 31, 2010 Mar. 31, 2010 Mar. 31, 2010 Revenue Time charter revenue $31,406 $(2,898) $28,509 Non-cash recurring Less: Commisssions 1,738 1,738 Net Revenue 29,668 (2,898) 26,770 Expenses Voyage expens
Slide 17: Operating Performance Q1 2010
Operating Performance Q110 1st Quarter Ended Mar. 31, 2010 Fleet Data Average number of vessels 11.2 Available days for fleet 990 Calendar days for fleet 1,004 Fleet ultilization 99% Average Daily Results Time Charter Equivalent - Adjusted 26,955 % of TCE Vessel operating expenses 4,675 17.34% Dry-d
Slide 18: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement (US$ 000's) March 31, December 31, (US$ 000's) 3 Months Ended 3 Months Ended 2010 2009 Mar. 31, 2010 Mar. 31, 2009 Cash 130,725 133,960 Net income 9,159 19,185 Current assets, excluding cash 36,590 56,089 Non-cash revenue, write-off Fixed assets, net 596,787 604,7
Slide 19: Drydockings 2010 - 2011
Drydockings 2010 - 2011 Vessel Next DD Estimated Estimated Type Quarter Budget (1) Offhire Days (1) Clean Seas Handymax 2Q10 $ 750,000 25 Sapphire Seas Supramax 2Q10 $ 750,000 25 Diamond Seas Panamax 2Q10 $ 850,000 25 Crystal Seas Handymax 4Q10 $ 750,000 25 Total 2010 $ 3,100,000 100 Friendly Seas S
Slide 20: Sustainability
Sustainability 100% of revenue days covered in 2010 $73m debt repayment from cash flow thru 2011 Current fleet to produce $35m of free cash flow thru 2011 Moderately leveraged balance sheet Capacity to add a further $200 million of assets Continue to pay quarterly dividend Slide 20
Slide 21: Thank you
Paragon Shipping Inc. Thank you
Slide 22: Appendices
Appendices ass! Slide 22 ines Paragon Shipping Inc.
Slide 23: Fleet List
Fleet List Vessel Name Type DWT Year Built Country of Build Date Acquired Calm Seas Panamax 74,047 1999 Japan December 2006 Deep Seas Panamax 72,891 1999 Korea December 2006 Kind Seas Panamax 72,493 1999 Japan December 2006 Clean Seas Handymax 46,640 1995 Japan January 2007 Crystal Seas Handymax 43,
Slide 24: Current Fleet Employment
Current Fleet Employment PARAGON FLEET EMPLOYMENT VESSEL CHARTERER GROSS HIRE DURATION DELIVERY REDELIVERY PANAMAX FLEET Calm Seas Intermare Transport $ 15,775 23-26 Months Apr-10 Mar-12 / Jun-12 Deep Seas Morgan Stanley $ 15,000 24-28 Months Sep-09 Sep-11 / Dec-11 Kind Seas Deiulemar Shipping $ 45,
Slide 25: Non-Cash Items 2010
Non-Cash Items 2010 Non-Cash Revenue Q1 2010 Q2 2010 Q3 2010 Q4 2010 2,897,745 2,375,059 - - Additional Depreciation Charge Q1 2010 Q2 2010 Q3 2010 Q4 2010 680,598 688,261 695,825 695,825 Slide 25