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Eagle Bulk Shipping Inc EGLE
Q3 2011 Earnings Call Transcript

Transcript Call Date 11/08/2011

Operator: Good day, ladies and gentlemen, and welcome to the Third Quarter 2011 Eagle Bulk Shipping Incorporated Earnings Conference Call. My name is Ann and I will be your coordinator for today's call. As a reminder, this conference is being recorded for replay purposes. At this time, all participants are in listen-only mode. We will be facilitating a question-and-answer session following the presentation.

I would now like to turn the presentation over to Mr. Sophocles Zoullas, Chairman and CEO. Please proceed, sir.

Sophocles N. Zoullas - Chairman and CEO: Thank you, and good morning. I would like to welcome everyone to Eagle Bulk Shipping's third quarter 2011 earnings call. To supplement our remarks today, I encourage participants to access a slide presentation that is available on our website at www.eagleships.com.

Please note that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance and are inherently subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. We refer all of you to our filings with the Securities & Exchange Commission for a more detailed discussion of the risks and uncertainties that may have a direct bearing on our operating results, our performance and our financial condition.

Please note on Slide 3, the agenda for today's call will be as follows; I will first brief you on our third quarter 2011 results and highlights, proceed with an update on the Company, and lastly, present our current views on the market. Alan will then give an overview of our financials before we open the call to questions.

Please turn to Slide 5, for review of our third quarter 2011 results and highlights. Peak supply growth continued to outpace demand leading to a lackluster rate environment which in turn negatively impacted earnings for the period. Eagle Bulk generated a net loss of $5.9 million or $0.09 per share basic and diluted.

Revenues, net of charter commissions totaled $80.3 million for the quarter representing an increase of 10.3% year-on-year. This increase is primarily attributed to operating a larger fleet as compared to the same period last year.

EBITDA for the third quarter 2011 amounted to $25.9 million and fleet utilization which is calculated as the number of operating days divided by the number of available days came in at an impressive 99.4%.

On the strategic front, we took delivery of our final three newbuild Supramax’s since our last earnings call in August. Marking the end to our successful newbuilding program set out just a few years ago.

All three of the vessels, we took delivery of the Puffin, the Roadrunner and the Sandpiper are fixed on three year charters at an above market rate of $17,650 per day plus profit share. The total minimum contracted revenue is projected at $58 million.

Please turn to Slide 7, where we depict our historical and projected fleet capacity. Since 2005, we have grown the fleet to 45 vessels, representing an impressive, cumulative annual growth rate of 26%.

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