Slide 1: Third Quarter 2018 Earnings Conference Call Presentation
THIRD 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: Pangaea Logistics Solutions Ltd.
PANGAEA LOGISITICS SOLUTIONS LTD. Logistics services and integrated chartering solutions provide attractive returns 3
Slide 4: Pangaea Logistics Solutions Ltd.
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
BUSINESS HIGHLIGHTS Q3-2018 Results (1) •Adjusted EBITDA of $16.6 million Consistent •Net income of $8.3 million Performance •Income from operations of $12.1 million Fleet Working Fleet • 19 drybulk ships and one barge in owned and controlled fleet Operations •Operating 46 vessels on average during
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 – 21% premium over average market rates in Q3 – 2018 Rate Environment: The Baltic Dry Index average fo
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS • 8% increase in net revenue, reflecting improvement in market fundamentals • Increase in working capital and positive 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 Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Voyage revenue $ 81,813 $ 93,689 $ 233,979 $ 251,608 Charter revenue 13,532 13,334 37,162 31,294 95,345 107,023 271,141 282,90
Slide 9: Selected Balance Sheet & Cash Flow Data
SELECTED BALANCE SHEET & CASH FLOW DATA September 30, 2018 December 31, 2017 (in thousands) (unaudited) Current Assets Cash and cash equivalents $ 50,765 $ 34,532 Accounts receivable, net 26,826 21,089 Other current assets 34,965 27,389 Total current assets 112,557 83,010 Restricted Cash 2,500 4,000
Slide 10: Total Shipping Days
TOTAL SHIPPING DAYS 6,000 5,000 4,000 3,741 3,461 Days 3,000 3,193 2,645 2,537 2,914 2,366 1,904 2,000 1,000 1,468 1,564 1,575 1,620 1,638 1,288 1,288 1,428 - Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 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 $16,000 $14,000 30% 32% 21% 15% $2,440 $12,000 26% $3,187 $3,355 35% $1,605 $2,471 $10,000 16% $2,958 $1,367 $8,000 $6,000 $10,905 $11,395 $10,662 $10,373 $9,351 $4,000 $8,578 $8,375 $2,000 $- Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 Q3 - 2018 Pan
Slide 12: Financial Performance Q3-2016 through Q2-2018
FINANCIAL PERFORMANCE Q3-2016 THROUGH Q2-2018 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 - $- Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-16 Q1-17 Q2-17 Q
Slide 13: Adjusted Earnings per Common Share
ADJUSTED EARNINGS PER COMMON SHARE Adjusted EPS LTM total $0.56 per share Adjusted EPS* 0.25 0.20 0.15 0.10 0.05 - Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 *Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on sale and leaseback of ve