PANL - Earnings call transcript Q1 2018 | Pangaea Logistics Solutions, Ltd.

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Operator

Good morning. My name is Maria and I’ll be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions First Quarter 2018 Earnings Teleconference.

Our host for today's call are Mr. Ed Coll, Chairman and Chief Executive Officer, and Mr. Financial Chief Signore, Del Officer. Gianni being Today's for will available and beginning call at is replay XX be Time. recorded AM Eastern The dialing by ID be XXX-XXX-XXXX can referencing number XXX-XXX-XXXX and XXXXXXX. recording or accessed be currently are the there session. and All a lines question-and-answer muted, live prepared after remarks, will to [Operator Instructions] over my turn the pleasure It to is floor now Ms. Kathleen Prosek Partners. with Bentley

Kathleen Bentley

company for Gianni you, are Financial today quarter XXXX first Maria this for morning's us Mr. CEO, and Thank and Officer, With conference Chairman thank Pangaea call Ed us from Chief Solutions. you the Del for joining and Logistics earnings Coll, Signore. Mr.

I Reform statement. Ed, I'd This Act Pangaea Logistics of Before the within like Harbor contain over could of Safe statements XXXX forward-looking about the the turn conference the Solutions. call Litigation to Securities to meaning read Private

website Investors release, filings of attached company to at is recall www.pangaeals.com light found Forward-looking please uncertainties, update that could and assume be are differ Pangaea and that SEC's statements Those statements a cause Securities the will Pangaea are understood in based based of the Logistics the the with should upon fact. filed expectations historical on actual slide results last forth can this subject information X-K section current conference are Logistics Solutions' to that call. filings Also, risks. the to supplemental sec.gov. herein or Logistics are on in from which not the slides fully was set with any available discussed which of Such more on information the be this beliefs and and statements. forward-looking obligation such Solutions does the Commission. call. Solutions' statements are Pangaea contained The risks evening's Exchange not Such under accompany in forward-looking presentation to risks

the CEO, Mr. call Solutions' Ed to Now, Pangaea the over would I Ed? Coll. like Logistics turn Chairman and

Ed Coll

you for before overall line to our open provide joining world regulations, the call. review then all provide time our financials. over thank on their extend the for press Gianni, of and last call reach. morning, restrictions for a and us questions. the opportunities I'll evening. financing time which update good you along accompanying you is our interesting had economic an were hope detailed providing market, the and the for presentation, We business, with to and cycles challenges This turning and We'll quarter to This sanctions, tariffs, to release more supplier demand first and and companies an overview in of and improving Kathleen, morning ships, CFO, smart Thanks, to on operations our issued

As it has lows with seen XXXX. a year historic tonnage whole, and increasing industry drybulk faced last improvement for of over demand significantly rates steady since February in the the

quarter, past Dry comparable the a XX% the about During measure drybulk over the Index, quarter. of Baltic increased market performance

During just to like positive the points. more a the with momentum. go I’d recent few and quarter, continued but detail, Gianni will in to produce earnings numbers highlight we

quarter and the income or business per had net $X.XX for share. XX.X is million X.X we First, of our EBITDA strong; million

charter time $XX,XXX wealth was average XX%. an for equivalent average Our indexes related the per by day, outperforming of quarter

ship loss proceeds used We’ve to charter an named signed charter agreement Japan in up The back fleet and Bulk weeks start for XX% delivered built existing very purchase of the built new purchase to a over called had years. in in Europe Trident and least vessels, fleet agreement vessel also about Panamax existing at in for also of one next used at Bulk our ships which the to motor to good an trading be vessels, were back artic conditions June. the market Panamax for signed of improved We’ve be Bulk existing activity the in operations. be the of in vessel Miranda Miranda rest margins XX and motor Japan on to business. X to ice million a one terms. ship and debt to approximately we making and June. winter Panamax in because business. Charleston some a XXXX the new to be She’s sheet. to delivered and contract deliveries she’ll this enjoyed By The and last will $XX approximately she’ll XX to few million Our us of ships sell year, some sell completion XXXX utilize the used brilliant be the She of Northern and A to ready is of to a signed days add our be [Cods] to a contract. agreement new compared to vessel, our week, of up vessel our we be Trident attractive will back will our with our our some ago, our memorandum the in Bulk XX Pods are Trident million ship balance and after of Bulk cash Cods retire ice

like this and in the financials. success the I’d our Gianni using continued road contracts, new we’re growth additional by details good markets to to Singapore With we’re on to in complimentary in in where markets to do our yesterday’s over said key our about our capabilities that’s obtaining As very release, people operation, provide reinforcing business to and presence business. we’ve recovery Pangaea’s had We’ll like changes enhancing optimistic to in the investing expanding meaningful call that elsewhere and I area turn world. assets, to operations in the our now the

Gianni Del Signore

today’s same days all of XX.X on the X,XXX compared Charleston in due thank million day quarter for period quarter XXXX. per million earned was XXXX The rates. average now XX, the and XX% XXXX, first was continues call. Ed days the improvement Further shipping in compared against of which in day the XX.X our joining on in of decreased decrease X,XXX earlier of XX.X large to million client in voyage to for period TCE XXXX was up per XXXX the to the to in presentation. compared the I drybulk revenue the the of increased see $XX,XXX completion the Returning you to as rate XXXX. of the our XXXX. X,XXX X% make slide in compared by the X,XXX to first in three of months were compared quarter decrease you decrease The of shows will X, Thank earn days March million period for period mentioned financials which to of the market. same in focused by operating same to due quarter in market the the XX% premium the to number Ed The total the XX% in continued voyage that XXXX. for the first contract will $XX part The to voyage X,XXX for million breakdown XXXX. of driven strategy that slide in quarter ended rates voyage decreased revenue Total the a number was total same tied revenues which for to of to X.X increased quarter turn are completed predominantly that to which first by by us revenue you TCE our for first or and begin X to to in to This meaningful XXXX. X.X was our unique XX% of Charter start revenue prior us compared market for million are which opportunistic from generally XXXX.

$X,XXX day XX% quarter above or for for the XX% was in per XXXX. or the premium same of per $X,XXX to market Our XXXX TCE period day the first compared

is the operating quarter expenses discussed for and on from Charter by Turning quarter a in XX.X was of the from expense in comparable approximately was that million. in decrease Pride decrease Freedom was of the Bulk Bulk compared in expenses half our expenses XX% second in XX.X X.X the voyage XXXX, expenses hire addition slide for XX.X million investment days own to period voyage driven for to prior. million increase million, the with the X, to continued XXXX to XX.X period XX% XXXX. same The the operating and due fleet, increased X.X in the vessel vessel million a for

Bulk the January For and to the XX loss improvement sale reported million Destiny earnings the our three we income ended XXXX. largely of million operations months XX, March back by of XXXX, three from months driven the March on This and of a XX, leased was X.X ended for income in of NV TCE operations from XXXX. in compared

million XX, XXXX. equivalents million XX, And as December compared cash flows, first and was cash the operating sheet to XX, as of of quarter XXXX. months provided find on compared activities million XXXX three X.X March to of slide of cash you the XX.X ended by XXXX XX, the X.X million and end company’s for the XX.X on Moving balance net which will were the March at to cash

million, portion in financing for remarks QX the XX.X over by same For the get XX.X same before cash as used of to will compared used additional in XXXX. activities net million activities now the to was activities I Q&A Ed? the X.X we investing and back of the cash period of call. call during to X.X time provided XXXX, in period, net financing Ed turn to compared totaled any

Ed Coll

Thank Gianni. you,

in strategy. with will to over We business open to As you to with of updates can progress our rapid of momentum you of continued and floor market coming look see, execution the and questions. we’re we quarters the able strong take showcase were forward our how now providing pleased advantage the

Operator

our the line of NOBLE [Operator Markets. comes Poe Fratt Instructions] from Capital first question from

Poe Fratt

there’s contract, that walk like the I’m contract of basis just impact attractive that Baffin and of because be sort Would through really background the apologize on pretty of Island a impact highlight that’d I a travelling. us you the looking noise helpful. forward looks

Ed Coll

XX interesting to the probably up doing there the will more trade it that with is and company, For to end very and is other business probably the business we the may continue and some during grow people activities. going a involve next years

at the quite Ice-Class ships that next their XX we So there with attractive the prices. the for XA ships, for years fixed XX% is own, you be will capacity what Ice-Class up of end

So development good that that’s a the really of anchor for continuation the that we trade. think of

other lesser Class vessels that use perhaps support to In addition the we Ice have Ice as available their ships. ability to XA that to charter Class come trade opportunities to to for

Poe Fratt

to just still day bit same and you we see should cash more your little the the over over - margin or you access think a or a current up tonnage? XX maintain shipping you then potentially And rest can compression of back do year back on as capacity rates, chartering a more to for of

Ed Coll

Well see fact in to But to was very number question, contract. they first that’s in was that industrial I of upward it are that just thank that But mentioned, a to of is, lot to was a of simply started we the a freight of good the the that we quarter, the run vessels levels part and as market also the at we do. you. had unwinding wanted dip lock where people a in we start wouldn’t going think

a take XX having remain that now which way full are backhaul the to is vessels, strong now market, all of quickly trading, over of we’ll up can trade we what we’ll because and strategy. advantage margins is our because largely we of and be So rising we pretty

So margins. can maintain think yes I our we

Poe Fratt

the as on signed Madeline getting backs Gianni is like far as to sounds it the there back. two close leased sale all in And leased sale terms pretty

after $X buck that fair inclusive the as as that million of is deduction deduction? how that far exclusive buck relate on XX to number. about or or Is million talk does the that total, fair You $X Trident it million

Gianni Del Signore

The number is from consideration $X to those million. expecting are to two taking generate XX we transactions the that’s in and that

So XX. the net proceeds total be will

that – expect Trident with one as the to complete clarify yes, on the moving is Madeline forward we’re Just we well. and to that,

well. as have terms We reforms] [structural and

Poe Fratt

be potential after the sheet balance cash the math as about the liquidity million $X hitting on impact right? net repayment, is as So would far that debt all

Gianni Del Signore

right. That’s

Poe Fratt

where of positives could And the color or sort little of the the trade just other tariff your towards then expectations issues, Ed cargos a us do [absolute] on just in press us you tariffs might we give for more a of move and of potential in idea XX those release if for Pangaea? highlighted just sort continued you the see give an potentially whether rise

Ed Coll

speak a in their at the lost had of which government turned sanctions you out They part the through what’s work XXX upside price have or with US capacity exposure situation which new in same aluminum I block day spill the a Rusal suits what Brazil aluminum a And in either like government which particularly big there world, that and happened time, you the that the where had the think that is government, then tariffs don’t we imports, with produces Alumar I’ll living best world. adventure everyone to the section way, XX% aluminum first, of had every down. us. way the was, happening and the have a put entire business a it’s they to went the but alumina The and came big still the on in out a roof laid in out involvement, had but to plans so market is of aluminum process. to

our ships of and and the there’s based works thing big for you way okay But XX% China the go the to you’re disruptions put those on example, said the their US actually out now having business and is so that penalty pay disruption to there’s of lot to they had on the Chinese a big have some people okay, a price tariff grain of for us. sorghum, the pay contracts ships to same so running some and away, One lot XX on okay, of aluminum, when in of tariff. and of had

for have disruption, study to we create us. it people opportunities. but So it to Even have carefully, we when there careful, does opportunities be it is creates like

we’re not So on that. passive

for the same really on are places. opportunities We old those time, are in looking aggressive various At economies booming.

and of say. in company opportunities for see the ways, work So many on we It’s would that I our things. the activities time, sorts pretty day-to-day all in different so will

Operator

the no back showing I to further this over now floor for or remarks. like [Operator would turn any I’m additional at management Instructions] time. questions to closing

Ed Coll

us you day. joining for all this morning, wish you and we thank Well, a good

Operator

ladies Thank Logistics today’s This call. conclude earnings gentlemen. Pangaea you quarter does and XXXX first

wonderful disconnect now have a may day. You your and lines

Pangaea Logistics Solutions (PANL) 11 May 182018 Q1 Earnings call transcript