PANL - Earnings call transcript Q2 2019 | Pangaea Logistics Solutions, Ltd.

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Operator

Good morning, my name is Stephanie and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions’ Second Quarter 2019 Earnings Teleconference.

Our host for today's call are Mr. Ed Coll, Chairman and Chief Executive Officer; and Mr. Gianni Del Signore, Chief Financial Officer.

recorded A.M. be being beginning for is XX:XX at call and available will replay Today's Time. Standard Eastern The recording accessed and can be referencing XXX-XXX-XXXX domestic ID international, or number XXXXXXX. by dialing XXX-XXX-XXXX

prepared currently and live are session. Instructions] [Operator will lines All question-and-answer after the be remarks, muted a there

Sean now to Mr. is Prosek Partners. floor over turn It with the Please my to pleasure Silva go ahead.

Sean Silva

earnings Solutions. thank you this quarter XXXX for for morning's Logistics Pangaea us and conference joining Stephanie, for you, Thank call second

Ed, to I like I turn over Before statement. call the read harbor would safe the to

This meaning conference Pangaea Litigation of within could Logistics contain Forward-Looking about of Reform Statements the XXXX Securities the Private Solutions. Act

Forward-looking based Solutions' are differ subject statements historical are upon on the which based to risks current statements. management and and expectations are cause to are Logistics results statements uncertainties, the beliefs actual not Pangaea from statements fact. Such could forward-looking forward-looking and the that of

in Securities should The Solutions' more Solutions are Logistics information filings any Pangaea does risks in not understood conference be set the with risks. information update this of assume call. light fully Pangaea Such contained the to such Logistics Commission. Exchange forth discussed obligation and in herein

under that sec.gov. be Filings was evening's at this will slide supplemental Those slides Company or is available X-K website call. which release, on SEC section can Also, presentation www.pangaeals.com filed Investors recall found please of the a to last the attached accompany that with the on

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

Edward Coll

an to more financials. market to the and quarter This morning, over for Gianni, turning of update and of second provide you call. us detailed to call our joining on all morning good the will operations before the a CFO, the of our and provide overview you Sean, Thanks, overall I thank

open press were review then accompanying you evening. the issued last time and We hope release questions. which line our had will for the We to presentation,

business the market model, hybrid during more margin quarter we maintained validate a second significant nimble over the our a environment. despite strong Our results macro challenging

lower XX%. still the while rates, industry-leading outperformed TCE by an market Our year-over-year

This end season, at provide quarter strongest of quarter the required is is of ice class as for summer seasonally but conditions. services that second the considering ice marks our clients with significant not also the our just which with beginning to the hand, specialized demanding fleet

improvements the While past seeing several challenging been we begun over weeks. market year, have has this the

profitable our our However, adherence first in market hope client to environment. business, us will focused cargo we keep any

class dividend, during year. to the this year-to-date backdrop new two build the quarter, of we renewal strong we ice vessels In advance some second and upon the we and purchase additional our two ordered our declared And post strategy. remain fleet have momentum first generated going with active, half Panamax to quarterly and that into paid expect ships

that million to quarter in results the view I I quarter, quarter. will we quarter of light the our million second XXXX. XXXX. for operations QX was revenue reiterate $X total during income recorded million compared of market was We now XXXX, the results million the of X.X X.X from compared will summarize million, X.X positively. to QX of compared Net during during XX.X of conditions XX.X for million quite during to income these

will a XX.X provide and payments was driven of recorded we detail our at repayments our installment initiatives. debt cash Gianni This Lastly, shortly. this the by million of all are levels positive to quarterly beginning XXXX. value new cash more on on vessels of of million, compared enhancing dividend which XX.X payment

to highlights Turning quarter. for other the

September will Nantong/K total we be naming XX,XXX bulk ship Bulk the in to During vessel the which the XXXX. the quarter, are to agreement our dry we bringing Pangaea The XX an purchase into fleet Friendship built own entered vessels. delivered ton to XXXX

The efforts the approach requirements fleet new XXXX. renew to sulfur low own purchase high fuel our and in tonnage quality advances we as with our efficient

during also Bulk XXst the the We delivery quarter Independence of took our vessel.

loading and We JV are at have redevelopment the project dry this bulk partners to also vessels. project world-class cargo our pleased (Ph) expect center recently during logistics shipments [breaking and the process bulk we port, into commerce our quarter, beyond the of progress exemplifies with by differentiated begun site the made XXXX. the of approach point] our transforming a second half first dry cargo This shipping

enter about summer optimistic season. we ice Looking business our ahead, the we are as

to improving, Our deployed specialized supplemented Ice where back in maintaining our fully Finland during can exposure a we The our we very first-class with differentiated valued dynamically fleet continue adjust advance strategy in the of while our fleet to chartered class tonnage clients. service and is will trade a market quarter. market providing fleet be the owned

after the questions. which for call forward We updating you we the year the progresses. turn open over call additional look strategy Gianni our detail will Gianni. will and to further to as on I our financials provide now to

Gianni Del Signore

Thank you, walk joining for us first highlights by financials. today's a operational call. our will you I Ed thank on followed and few all through

by first excited our to payment The shareholders. was dividend marked deliver second ever to our quarter were which we

we have on me our investors that of are in mention success form pleased of accumulating heard level prior you the cash flows multiple calls, dividend. been from As quarters share to a have we record in and have

we quarter on vessels paid (Ph) was we sheet balance installment down in and the Barance bulk Newport. pay on Nordic our debt [Nordic prudent the Another management, Botnia] final the capital July, final efficient the and the for installment theme

of fleet growth and is as vessels reflects health Company. brings and debt that So strong the our a a feel of total six of impressive today, which are we free,

meaningful On see we future quarter ice we accretive the cash class deposited to expanding our million into ice to in market we builds, opportunities. new during have We actively drive position we demands new deploying installment X.X have also and a where long-term and committed projects of on are business, are first growth niche and feel we leading growth. the which

the focused assets are investing and enhance We the expand platform our value. and shareholder on to developing in expertise

I during of compared XXXX, XXXX. million number compared the now second revenue were performed our The days that quarter total to of during will With financials. XX.X XXXX to XXXX by to XX.X the second quarter of decreased the XX% to second of for turn Total quarter shipping million, XXXX.

this from days decline are was carrying for which of compared revenues and revenues, to compared in decrease revenue Voyage from specifically Voyage clients to million, our generated XX.X The a total cargo represents XX.X XX% million. XXXX XXXX quarter. our stem

significantly as per market. the declining TCE broader than our during well to XXXX. With decreased TCE compared the quarter better faired second second said, quarter which day As for the to that XXXX rates, XX,XXX rates

average approximately of or prepay an overall we over premium XX%. As rates market maintained XXXX

by our and Driven long-term specialized focus COAs, cargo fleet.

position industry-leading year-over-year million various approach revenues market time opportunistic days. driven XX business million unique and XX% Charter and us year-over-year charter to market tied cycles. dynamic by Our which to is to maintain what are allows from decline rate X.X model in an decreased in

Total Voyage second XXXX X% components quarter XX.X compared days. X% approximate as significant of XX.X to expenses are Voyage by a during the which primarily were same XX decrease expenses million, million decreased million which in year-over-year follows. period in by decrease driven of was the the for

XX.X million, XX% to was which This paid expenses decreased number XXXX. compared by to decline in of decrease driven owners QX ship was a the Charter of to to XX.X million in increased third-party increase driven days. X.X by [XXX] Vessel fees XXXX. to management operating an grew by XX.X our which as own technical excluding (Ph) paid to XXXX compared million million in days to expenses, days chartered-in-days

repayments final equivalents Moving debt XX.X and sheet cash in and I our initiatives earlier. that the cash on to million of had balance cash reflect allocation Total capital flows. referenced

accretive and to shareholders. million into at selectively we value return levels well-positioned projects XX, reported XXXX. June we to XX.X deployed cash These to cash are our As compared as

shareholders we opportunities our initiatives, platform progress continuously to our growth in since As tremendous and you driving becoming have public are rewarding expansion position made our and financial reflects the expansion can we making a ability progress Company. while also strengthen our see,

I turn Q&A call. before get Ed to call of to that, we over will portion any With the remarks now Ed. the the additional for back

Edward Coll

you, Thank Gianni.

have As in to about further their coming to the results see business and our we platform, you the from you strong thank partnership, forward. optimistic commitment remain path forward we reasons for customers, shareholders and quarters. partners of and and We expansion updating continued our look can our

now questions. to floor the will open I

Operator

Our Fratt Capital instructions] Poe NOBLE Markets. first question with is from [Operator

Poe Fratt

happened over Good in for voyages days and flavor I slightly about like When could you flavor morning a on course quarter second tons Ed, drop a a good timing the while of the or of lower reduction and million just six get the sort the the of of quarter. morning slightly just number you quarter moved been shipping number cargo what it little wanted moved Gianni. to sort in put in looked customers, of had sort charter in the you first days of you of I look quarter? each the versus smaller that at

Edward Coll

would little I that things generally What when active as and feel we it see opportunistic, of you go doing know we them better less is, doing is be are when we do what we and chances the it's ahead to what a we then do.

are normal I what of doing. think of a the is this we cycle part

more market we So lower cargo to are the the reluctant books. becomes take when on

are bit come that we now probably could XX and fleet has the that think best vessels. tell I I is the about with, running think you a can quite So currently I explanation up grown I

related opportunistic. Thanks. market So it just is

Poe Fratt

more now. the you it right is you answering had and are timing Ed sort next question, So of for thank where I

fleet if if when a for Or just a so? sort at that you an days of there? and making the economic me As investor point, whether - are your power understand conceptually idea or there? there impact is that sort far for Is you charter us former equity as of economic of brighten year has versus should more color sort been could And just looking next the redeveloped. could you impact you be equity we could then your on, investment of look it But an are if give over you the Ed an little I give great. any just plant total you

Edward Coll

Sure.

the making we the space terminal been think guys it we I tremendous opportunity. equity some in a to depends investments on the long-term that develop that What with been out here and the improved, to be have be going has quite successful. fill doing property amount. really as is don't to know is will the I It

be It say If you the East space Coast. is now lack ask would year on U.S. the real that from of would like a I we opinion, a my all done.

on shipping thing So going I products to products activity the would to more do and is come think you start are bottom line our suspect the I us that are starting directly that interesting that to flow the terminal will can through see the vessels. for many things we in for from XXXX that of that

is it double have So going impact. to a

I going be is so that I and long And think contract will very and so the I forward. that as helpful said, there XX-years to up would think

to places every and think year what good other forward, that that that think on project we will will in we be working doing are other things. able count income we is also on some from I the for see are going several model and I we really

Poe Fratt

then of congratulations sort sort about Gianni the will of financing and on Great Friendship. if you that, financing talk could of structure potentially the how on that. you

Gianni Del Signore

and half delivery to to a just as and with operating in in market develop on the relationship that a the far make we banks have Japan. XX% of relationships September right, very as second point there, fortunate Bulk just good have both in our point, in been in access expect slowly And Actually call are historically we partner have been clear operators the we we the we Japan, that banks now, the that JV agreement. Friendship, owners developed to breaking financing, Sure. and of we with the previous always

at are that in look in and bulk - for we expect bulk done also is the similar to pods operating delivery deliveries to lease recently Japanese that we rule, expected with spirit close for the the structures September. So the have going time we to and

Poe Fratt

Great.

right. case of have capacity under plenty covered the You in

Gianni Del Signore

remarks, I are as that we earlier now have unencumbered. the in said six Yes prepared vessels

capacity have we as some there do So well.

Poe Fratt

are we going do if you going builds. potential to loan build Panamaxes. is new then And options a then are shift bring and down this these new to on Is two there that in you into partner additional the have build the there could you Panamax to two a road or

Edward Coll

in would are talk I probably the think certainly is on whatever so something so far that know always shifts at looking of, additional in and we as You it for as well. working good are we detail partners we is are we actively the say a but that are is doing, possibility, we the in moment, as something what middle is can't I

comfortable is really economics this is adding idea the the I behind retain helpful we long-term I and in and forward. think group is have for that contract think for that The us most capacity our against will leadership quite important with and very ice going be to the are we business what

Poe Fratt

Great deposit that is think paid that payment and XX%. next million you we then When you XX%. I in do. anticipate is Gianni the X.X do The

Gianni Del Signore

It is is and year launching away, - on so a year least about it half. at

Poe Fratt

fourth So of quarter like XXXX.

Gianni Del Signore

Yes, correct.

Poe Fratt

that Would be fair.

Gianni Del Signore

Yes.

Poe Fratt

payment last now right March and that would be XXXX. Okay and delivery upon the is

Gianni Del Signore

decision and build a season We [Technical want ice the to part that summer for in XXXX that ships of ready Difficulty]. was our big

Edward Coll

Thank you Poe.

Operator

to like are back no questions at management. turn over it There additional to time, I would this

Edward Coll

very good everyone your much all to I have thank would day. and for a support like

Operator

concludes conference. you. This Thank today's

You may disconnect. now

Pangaea Logistics Solutions (PANL) 13 Aug 192019 Q2 Earnings call transcript