Paragon Shipping Inc · OTC:PRGNF
Paragon Shipping — Jefferies & Company 5th Annual Shipping, Logistics & Offshore Services Conference 2009
26 slides from Paragon Shipping's conference presentation, Sep 9, 2009
Slide 1: Paragon Shipping Inc. Jefferies 5th Annual Shipping, Logistics & Offshore Services Conference
Paragon Shipping Inc. Jefferies & Company Inc. 5 th Annual Shipping, Logistics & Offshore Services Conference September 2009
Slide 2: Forward Looking Statements
Nasdaq: PRGN Slide 2 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 per
Slide 3: 2Q09 & 1H09 - Highlights
Nasdaq: PRGN Slide 3 2Q09 & 1H09 - Highlights Best quarterly operating performance ü
Slide 4: Delivering on Strategic Objectives
Nasdaq: PRGN Slide 4 Delivering on Strategic Objectives Fleet Growth Modern Versatile Fleet Visible Cash Flows Dividend Pay-out Efficient Operating Structure Appropriate Leverage Focused Chartering
Slide 5: Modern Versatile Fleet
Nasdaq: PRGN Slide 5 Modern Versatile Fleet Average fleet age under 8 years compared to industry average of 14 World World World ü
Slide 6: Modern Versatile Fleet
Nasdaq: PRGN Slide 6 Modern Versatile Fleet Significant cargo and trade route versatility Ø
Slide 7: Efficient Operating Structure
Nasdaq: PRGN Slide 7 TVOE in 1H09 was 23% below our Peer Group Total Vessel Operating Expense (TVOE) 1H09 Efficient Operating Structure Utilization Rate (1) Peer group includes Diana Shipping, Genco and Eagle Bulk. ü
Slide 8: Focused Chartering
Nasdaq: PRGN Slide 8 Focused Chartering Only 8% spot days in 2010 $323 million of gross revenue from fixed charters 1) Committed for sale Q409 2) Assumes all extensions options are exercised. ü ü
Slide 9: Focused Chartering
Nasdaq: PRGN Slide 9 Focused Chartering 1) Committed for sale Q409 2) Assumes all extensions options are exercised. Additional 4,340 days fixed since November 2008 ü
Slide 10: Visible Cash Flows
Nasdaq: PRGN Slide 10 Visible Cash Flows Average Daily Fleet-wide TCE Rate vs 3 Yr Panamax TC Rate FFA Rates are used for the estimation of Spot Revenue for the years 2010 and 2011 Source: Clarkson’s Research Estimation ü
Slide 11: Fleet Growth & Dividends
Nasdaq: PRGN Slide 11 Fleet Growth & Dividends Six times fleet growth since inception Growth coupled with continuous dividends Average Number of Vessels Annualized Dividend Yield ü ü
Slide 12: Growth Potential
Nasdaq: PRGN Slide 12 Growth Potential Access to substantial liquidity now for future growth 1. Free cash excludes restricted cash Sufficient liquidity to double fleet size Present Position ü
Slide 13: Appropriate Leverage
Nasdaq: PRGN Slide 13 Appropriate Leverage Estimated Free Cash Flow Projections Leverage Ratios $123 million of debt repayments thru 2011 $56 million of free cash flow to be generated thru 2011 1. Estimates are based on existing fixed charters as well as current FFA rates for unfixed days for each y
Slide 14: Building liquidity to further expand the fleet
Nasdaq: PRGN Slide 14 Building liquidity to further expand the fleet 48 million shares outstanding after completion #2 CEO Controlled Equity Offering #1 Controlled Equity Offering Number of shares sold = 10m Average net sale price = $4.26 per share Cash proceeds = $42.6m #2 Controlled Equity Offerin
Slide 15: Investment Summary
Nasdaq: PRGN Modern Versatile Fleet Efficient Operating Structure Focused Chartering Visible Cash Flows Fleet Growth Dividend Pay-Out Appropriate Leverage 8 year fleet vs. 14 years industry average Lowest vessel operating expenses Revenue days secured 99%, 92%, 72% in 2009, 2010 and 2011. 6 new or r
Slide 16: Thank you
Thank you
Slide 17: Appendices
Nasdaq: PRGN Slide 17 Appendices
Slide 18: Fleet Technical Details
Nasdaq: PRGN Slide 18 Fleet Technical Details 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 Blue Seas Handymax 45,654 1995 Japan Dece
Slide 19: Current Fleet Employment
Nasdaq: PRGN Slide 19 Current Fleet Employment 1) Owner’s option. Appendix II
Slide 20: Income Statement 2Q09
Nasdaq: PRGN Slide 20 Income Statement 2Q09 Non-cash recurring Non-cash recurring Non-cash Non-cash Non-cash recurring Appendix III
Slide 21: Income Statement 1H09
Nasdaq: PRGN Slide 21 Income Statement 1H09 Non-cash recurring Non-cash recurring Non-cash Non-cash Non-cash recurring Appendix IV
Slide 22: Operating Performance 1H09
Nasdaq: PRGN Slide 22 Operating Performance 1H09 Appendix V
Slide 23: Balance Sheet and Cash Flow Statement
Nasdaq: PRGN Slide 23 Balance Sheet and Cash Flow Statement Appendix VI
Slide 24: Non-Cash Items 2008 - 2009
Nasdaq: PRGN Slide 24 Non-Cash Items 2008 - 2009 Non-Cash Revenue Additional Depreciation Charge Appendix VII Ø Ø
Slide 25: Drydockings 2009 - 2010
Nasdaq: PRGN Slide 25 Drydockings 2009 - 2010 (1) The costs reflected are estimates based on drydocking our vessels in China. We estimate that each drydock will result in 25 days off-hire. Actual costs may vary on various factors, including where the drydockings are performed. We expect to fund thes
Slide 26: Cost Control
Nasdaq: PRGN Cost Control Source: Moore Stephens Operating costs are still rising Daily Operating Costs - Drybulk Carrier Operating Cost Indices Slide 26 Over 50% of costs are “fixed” } Appendix IX Ø