EX-99.1 2 file2.htm PRESS RELEASE DATED MAY 6, 2008

 

Press Release

Exhibit 99.1

Eagle Bulk Shipping Inc. Reports First Quarter 2008 Results

— First Quarter Net Income Increased 69% —

— First Quarter Net Time Charter Revenue Increased 36% —

— Declares First Quarter Dividend of $0.50 —

NEW YORK, NY, May 6, 2008 -- Eagle Bulk Shipping Inc. (NasdaqGS: EGLE) today announced its results for the first quarter of 2008.

Financial highlights for the First Quarter included:

 

•

Income from vessel operations of $16.9 million or $0.36 per share, up 44% from $11.7 million or $0.31 per share in the first quarter of 2007. (Income from vessel operations is net income adjusted for non-cash compensation charges. Please see below for a reconciliation of income from vessel operations to net income).

 

•

Net Income of $14.3 million or $0.31 per share (based on a weighted average of 46,925,494 diluted shares outstanding for the quarter), up 69% from net income of $8.5 million or $0.23 per share (based on a weighted average of 37,480,914 diluted shares outstanding for the quarter) in the first quarter of 2007.

 

•

Gross time charter revenue increased by $9.1 million, or 31%, to $38.6 million for the first quarter of 2008, from $29.5 million for the first quarter of 2007. Net time charter revenue increased by $9.8 million, or 36%, to $36.7 million for the first quarter of 2008, from $26.9 million for the first quarter of 2007.

 

•

EBITDA, as adjusted for exceptional items under the terms of the Company’s credit agreement, increased by 27% to $27.5 million for the first quarter of 2008, from $21.8 million for the first quarter of 2007. Please see below for a reconciliation of EBITDA to net income.

 

•

Declared and paid a dividend of $0.50 per share, or $23.4 million, on March 18, 2008, based on the fourth quarter 2007 results.

Based on the first quarter results, the Company has declared a cash dividend of $0.50 per share payable on or about May 23, 2008, to shareholders of record as of May 20, 2008.

Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, “We are very pleased with our solid results as the fleet continues to deliver superior performance and generate significant cash flows. This allows our shareholders to participate in the strength of the drybulk market through our dividends. With this quarter’s declared dividend of $0.50 per share, shareholders have realized aggregate dividends of $5.60 per share.

“Looking forward, Eagle Bulk is poised to realize significant growth from our well-timed, $1.5 billion capital investment program in newbuilding vessels and opportunistic acquisitions. We will be taking delivery of the first of the 35 vessels this summer, to be followed by an accelerated vessel delivery calendar thereafter. And beginning this summer, we also have several on-the-water vessels of our operating fleet coming open for re-chartering to take advantage of the strong dry bulk market. These factors have positioned the Company to significantly increase cash flow and returns for our shareholders in the second half of 2008 and beyond.”

 

 

1

 


Results of Operations for the three month periods ended March 31, 2008 and 2007

All of the Company’s revenues were earned from Time Charters. Gross revenues in the first quarter of 2008 were $38,610,921, an increase of 31% from the $29,476,374 recorded in the comparable quarter in 2007, primarily due to a larger fleet size, as reflected by increased operating days, and an increase in daily time charter rates. Brokerage commissions incurred on revenues earned were $1,924,905 and $1,487,842 in the first quarters of 2008 and 2007, respectively. The first quarter of 2007 also reflected an amortization charge of net prepaid and deferred charter revenue of $1,080,000. Net revenues during the three months ended March 31, 2008, and 2007 were $36,686,016 and $26,908,532, respectively, an increase of 36%.

For the first quarter of 2008, total vessel expenses incurred amounted to $7,991,261. These expenses included $7,439,959 in vessel operating costs and $551,302 in technical management fees paid to the Company’s third-party technical managers. For the corresponding quarter in 2007, total vessel expenses were $6,245,898 which included $5,836,461 in vessel operating costs and $409,437 in technical management fees.

General and administrative expenses which include onshore vessel administration related expenses such as payroll, non-cash compensation expenses, and overhead costs for the three-month periods ended March 31, 2008 and 2007 were $5,049,159 and $4,903,043, respectively.

EBITDA, as adjusted for exceptional items under the terms of the Company’s credit agreement, increased by 27% to $27,547,805 for the first quarter of 2008, from $21,769,767 for the comparable quarter in 2007. (Please see below for a reconciliation of EBITDA to net income).

In the first quarter of 2008, income from vessel operations, which is net income adjusted for non-cash compensation charges, was $16,861,513 or $0.36 per share, up 44% from $11,747,011 or $0.31 per share in the first quarter of 2007. (Please see below for a reconciliation of income from vessel operations to net income).

Net income for the first quarter of 2008 was $14,345,810, an increase of 69% from $8,487,788 in the comparable quarter in 2007. Earnings per share in the first quarter of 2008 were $0.31, based on a weighted average of 46,925,494 diluted shares outstanding. In the comparable quarter of 2007, earnings per share were $0.23, based on a weighted average of 37,480,914 diluted shares outstanding.

Liquidity and Capital Resources

Net cash provided by operating activities during the three month periods ended March 31, 2008 and 2007 was $26,454,362 and $18,801,874, respectively. The increase was primarily due to cash generated from the operation of the fleet for 1,638 days in the first quarter of 2008 compared to 1,407 days in the first quarter of 2007.

Net cash used in investing activities during the first quarter of 2008 was $13,399,474 compared to $37,251,697 during the corresponding quarter in 2007. Investing activities in this quarter related primarily to making progress payments and related construction costs for the newbuilding vessels. Investing activities in the first quarter of 2007 related primarily to making deposits toward acquiring second-hand vessels and the newbuilding vessels. The first quarter of 2007 also saw the Company receive proceeds from the sale of its oldest vessel.

Net cash used in financing activities during the first quarter of 2008 was $17,445,157, compared to net cash provided by financing activities of $115,169,544 during the first quarter of 2007. Financing activities in this quarter included borrowing $6,630,000 from the revolving credit facility to fund progress

 

 

2

 


payments for the newbuilding vessels and paying $23,378,577 in dividends. Financing activities in the first quarter of 2007 mostly relate to receipt of $107,428,803 in net proceeds from the sale of common shares, net borrowings of $25,649,741 from the revolving credit facility, and payment of $18,309,000 in dividends.

The Company’s cash balances at the end of the first quarters of 2008 and 2007 were $148,513,423 and $118,995,212, respectively. In addition, the Company maintains restricted cash of $9,000,000 with its lender for loan compliance purposes.

Disclosure of Non-GAAP Financial Measures

EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company’s financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company’s ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

Our revolving credit facility permits us to pay dividends in amounts up to our cumulative free cash flows which is our earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking. Therefore, we believe that this non-GAAP measure is important for our investors as it reflects our ability to pay dividends. The following table is a reconciliation of net income, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA:

 

 

 

Three Months Ended

 

 

 

March 31, 2008

 

March 31, 2007

 

Net Income

 

$

14,345,810

 

$

8,487,788

 

Interest Expense

 

 

3,350,253

 

 

3,152,125

 

Depreciation and Amortization

 

 

7,336,039

 

 

5,790,631

 

Amortization of Prepaid and Deferred Revenue

 

 

—

 

 

1,080,000

 

EBITDA

 

 

25,032,102

 

 

18,510,544

 

Adjustments for Exceptional Items:

 

 

 

 

 

 

 

Non-cash Compensation Expense (1)

 

 

2,515,703

 

 

3,259,223

 

Credit Agreement EBITDA

 

$

27,547,805

 

$

21,769,767

 

(1)

Stock based compensation related to stock options, restricted stock units, and management’s participation in profits interests in the Company’s former principal shareholder Eagle Ventures LLC.

 

 

3

 


Reconciliation of GAAP net income to Non-GAAP income from vessel operations:

 

 

 

Three Months Ended

 

 

 

March 31, 2008

 

March 31, 2007

 

Net Income

 

$

14,345,810

 

$

8,487,788

 

Adjustments:

 

 

 

 

 

 

 

Non-cash Compensation Expense

 

 

2,515,703

 

 

3,259,223

 

Income from Vessel Operations

 

$

16,861,513

 

$

11,747,011

 

Capital Expenditures and Drydocking

The Company’s capital expenditures relate to the purchase of vessels and capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels. As of March 31, 2008, the fleet currently consists of 18 vessels which are currently operational and 35 newbuilding vessels which have been contracted for construction and will be delivered between mid-2008 and 2012.

In addition to acquisitions that may be undertaken in future periods, the Company’s other major capital expenditures include funding the Company’s maintenance program of regularly scheduled drydocking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Management anticipates that vessels are to be drydocked every two and a half years and funding is to be met with cash from operations. Drydocking costs incurred are amortized to expense on a straight-line basis over the period through the date the next drydocking for those vessels are scheduled to occur. The Company did not drydock any vessel in the three months ended March 31, 2008. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:

 

 

Quarter Ending

 

Off-hire Days(1)

 

Projected Costs(2)
 

June 30, 2008

 

30

 

$1.00 million
 

September 30, 2008

 

60

 

$2.00 million
 

December 31, 2008

 

15

 

$0.50 million
 

March 31, 2009

 

15

 

$0.50 million

(1)

Actual duration of drydocking will vary based on the condition of the vessel, yard schedules and other factors.

(2)

Actual costs will vary based on various factors, including where the drydockings are actually performed.

 

 

4

 


Summary Consolidated Financial and Other Data:

The following table summarizes the Company’s selected consolidated financial and other data (unaudited) for the periods indicated below.

CONSOLIDATED STATEMENTS OF OPERATIONS:

 

 

 

Three Months Ended

 

 

 

March 31, 2008

 

March 31, 2007

 

Revenues, net of Commissions

 

$

36,686,016

 

$

26,908,532

 

Vessel Expenses

 

 

7,991,261

 

 

6,245,898

 

Depreciation and Amortization

 

 

7,336,039

 

 

5,790,631

 

General and Administrative Expenses

 

 

5,049,159

 

 

4,903,043

 

Gain on Sale of Vessel

 

 

—

 

 

(872,568

)

Total Operating Expenses

 

 

20,376,459

 

 

16,067,004

 

Operating Income

 

 

16,309,557

 

 

10,841,528

 

Interest Expense

 

 

3,350,253

 

 

3,152,125

 

Interest Income

 

 

(1,386,506

)

 

(798,385

)

Net Interest Expense

 

 

1,963,747

 

 

2,353,740

 

Net Income

 

$

14,345,810

 

$

8,487,788

 

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

Basic

 

 

46,752,538

 

 

37,450,578

 

Diluted

 

 

46,925,494

 

 

37,480,914

 

Per Share Amounts:

 

 

 

 

 

 

 

Basic Net Income

 

$

0.31

 

$

0.23

 

Diluted Net Income

 

$

0.31

 

$

0.23

 

Cash Dividends Declared and Paid

 

$

0.50

 

$

0.51

 

Fleet Operating Data

 

 

 

 

 

 

 

Number of Vessels in operating fleet

 

 

18

 

 

16

 

Fleet Ownership Days

 

 

1,638

 

 

1,407

 

Fleet Available Days

 

 

1,638

 

 

1,395

 

Fleet Operating Days

 

 

1,633

 

 

1,387

 

Fleet Utilization Days

 

 

99.7

%

 

99.4

%

 

 

5

 


 

CONSOLIDATED BALANCE SHEETS:

 

 

 

March 31, 2008

 

December 31, 2007

 

 

 

(Unaudited)

 

 

 

ASSETS:

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash

 

$

148,513,423

 

$

152,903,692

 

Accounts Receivable

 

 

3,279,383

 

 

3,392,461

 

Prepaid Expenses

 

 

1,299,813

 

 

1,158,113

 

Total Current Assets

 

 

153,092,619

 

 

157,454,266

 

Fixed Assets:

 

 

 

 

 

 

 

Vessels and Vessel Improvements, at cost, net of Accumulated
Depreciation of $59,442,019 and $52,733,604, respectively

 

 

598,659,588

 

 

605,244,861

 

Advances for Vessel Construction

 

 

358,542,727

 

 

344,854,962

 

Restricted Cash

 

 

9,276,056

 

 

9,124,616

 

Deferred Drydock Costs, net of Accumulated Amortization of $3,080,877 and $2,453,253, respectively

 

 

3,356,233

 

 

3,918,006

 

Deferred Financing Costs

 

 

14,550,824

 

 

14,479,024

 

Other Assets

 

 

10,809,238

 

 

932,638

 

Total Assets

 

$

1,148,287,285

 

$

1,136,008,373

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts Payable

 

$

2,145,264

 

$

3,621,559

 

Accrued Interest

 

 

3,561,824

 

 

455,750

 

Other Accrued Liabilities

 

 

1,816,342

 

 

1,863,272

 

Unearned Charter Hire Revenue

 

 

5,028,551

 

 

4,322,024

 

Total Current Liabilities

 

 

12,551,981

 

 

10,262,605

 

Long-term Debt

 

 

603,872,890

 

 

597,242,890

 

Other Liabilities

 

 

31,008,992

 

 

13,531,883

 

Total Liabilities

 

 

647,433,863

 

 

621,037,378

 

Stockholders’ Equity:

 

 

 

 

 

 

 

Preferred Stock, $.01 par value, 25,000,000 shares authorized, none issued

 

 

—

 

 

—

 

Common shares, $.01 par value, 100,000,000 shares authorized, 46,757,153 and 46,727,153 shares issued and outstanding, respectively

 

 

467,571

 

 


467,271

 

Additional Paid-In Capital

 

 

605,444,933

 

 

602,929,530

 

Retained Earnings (net of Dividends declared of $191,904,059 and $168,525,482 respectively)

 

 

(84,859,328

)

 


(75,826,561

)

Accumulated Other Comprehensive(Loss)

 

 

(20,199,754

)

 

(12,599,245

)

Total Stockholders’ Equity

 

 

500,853,422

 

 

514,970,995

 

Total Liabilities and Stockholders’ Equity

 

$

1,148,287,285

 

$

1,136,008,373

 

 

 

6

 


CONSOLIDATED STATEMENTS OF CASH FLOWS:

 

 

 

Three Months Ended

 

 

 

March 31, 2008

 

March 31, 2007

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net Income

 

$

14,345,810

 

$

8,487,788

 

Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities:
Items included in net income not affecting cash flows:

 

 

 

 

 

 

 

Depreciation

 

 

6,708,415

 

 

5,515,648

 

Amortization of Deferred Drydocking Costs

 

 

627,624

 

 

274,983

 

Amortization of Deferred Financing Costs

 

 

61,907

 

 

58,012

 

Amortization of Prepaid and Deferred Charter Revenue

 

 

—

 

 

1,080,000

 

Non-cash Compensation Expense

 

 

2,515,703

 

 

3,259,223

 

Gain on Sale of Vessel

 

 

—

 

 

(872,568

)

Changes in Operating Assets and Liabilities:

 

 

 

 

 

 

 

Accounts Receivable

 

 

113,078

 

 

(236,485

)

Prepaid Expenses

 

 

(141,700

)

 

2,666

 

Accounts Payable

 

 

(1,476,295

)

 

496,342

 

Accrued Interest

 

 

3,106,074

 

 

81,792

 

Accrued Expenses

 

 

(46,930

)

 

194,636

 

Drydocking Expenditures

 

 

(65,851

)

 

—

 

Unearned Charter Hire Revenue

 

 

706,527

 

 

459,837

 

Net Cash Provided by Operating Activities

 

 

26,454,362

 

 

18,801,874

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Advances for Vessel Acquisition and Improvements

 

 

(123,142

)

 

(23,475,897

)

Advances for Vessel Construction

 

 

(13,276,332

)

 

(25,787,282

)

Proceeds from Sale of Vessel

 

 

—

 

 

12,011,482

 

Net Cash Used in Investing Activities

 

 

(13,399,474

)

 

(37,251,697

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Issuance of Common Stock

 

 

—

 

 

110,171,870

 

Equity Issuance Costs

 

 

—

 

 

(2,743,067

)

Bank Borrowings

 

 

6,630,000

 

 

38,089,741

 

Repayment of Bank Debt

 

 

—

 

 

(12,440,000

)

Changes in Restricted Cash

 

 

(151,440

)

 

400,000

 

Deferred Financing Costs

 

 

(545,140

)

 

—

 

Cash Dividends

 

 

(23,378,577

)

 

(18,309,000

)

Net Cash (Used in)/Provided by Financing Activities

 

 

(17,445,157

)

 

115,169,544

 

Net (Decrease)/Increase in Cash

 

 

(4,390,269

)

 

96,719,721

 

Cash at Beginning of Period

 

 

152,903,692

 

 

22,275,491

 

Cash at End of Period

 

$

148,513,423

 

$

118,995,212

 

Supplemental Cash Flow Information:

 

 

 

 

 

 

 

Cash paid during the period for Interest (including Capitalized interest of $3,169,495 and $375,845 respectively)

 

$

5,891,487

 

$

3,485,585

 

 

 

7

 


Commercial and strategic management of the fleet is carried out by a wholly-owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Marshall Islands limited liability company with offices in New York City.

The following table represents certain information about the Company’s revenue earning charters on its operating fleet as of March 31, 2008:

 

Vessel

 

Year
Built

 

Dwt

 

Delivered to
Charterer

 

Time Charter Expiration (1)

 

Daily Time
Charter Hire Rate

 

Cardinal

 

2004

 

55,408

 

June 21, 2007

 

May 2008 to August 2008

 

$28,000

 

Condor (2)

 

2001

 

50,296

 

March 19, 2007

 

May 2009 to August 2009

 

$20,500

 

Falcon (3)

 

2001

 

50,296

 

April 22, 2005

 

April 2008 to June 2008

 

$20,950

 

Griffon

 

1995

 

46,635

 

March 18, 2007

 

March 2009 to June 2009

 

$20,075

 

Harrier (4)

 

2001

 

50,296

 

June 21, 2007

 

June 2009 to September 2009

 

$24,000

 

Hawk I

 

2001

 

50,296

 

April 1, 2007

 

April 2009 to June 2009

 

$22,000

 

Heron (5)

 

2001

 

52,827

 

January 28, 2008

 

January 2011 to March 2011

 

$26,375

 

Jaeger (6)

 

2004

 

52,248

 

July 12, 2007

 

July 2008 to September 2008

 

$27,500

 

Kestrel I (7)

 

2004

 

50,326

 

July 1, 2006

 

April 2008 to June 2008

 

$18,750

 

Kite

 

1997

 

47,195

 

August 11, 2007

 

September 2009 to January 2010

 

$21,000

 

Merlin(8)

 

2001

 

50,296

 

December 19, 2007

 

December 2010 to March 2011

 

$25,000

 

Osprey I (9)

 

2002

 

50,206

 

September 1, 2005

 

July 2008 to November 2008

 

$21,000

 

Peregrine

 

2001

 

50,913

 

December 16, 2006

 

December 2008 to March 2009

 

$20,500

 

Sparrow (10)

 

2000

 

48,225

 

February 28, 2008

 

February 2010 to April 2010

 

$34,500

 

Tern (11)

 

2003

 

50,200

 

March 9, 2008

 

February 2009 to April 2009

 

$20,500

 

Shrike (12)

 

2003

 

53,343

 

April 24, 2007

 

April 2009 to August 2009

 

$24,600

 

Skua (13)

 

2003

 

53,350

 

June 20, 2007

 

May 2009 to August 2009

 

$24,200

 

Kittiwake (14)

 

2002

 

53,146

 

June 27, 2007

 

May 2008 to August 2008

 

$30,400

 

(1)

The date range provided represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter.

(2)

The charterer of the CONDOR has exercised its option to extend the charter period by 11 to 13 months at a time charter rate of $22,000 per day.

 

 

8

 


(3)

Upon conclusion of the current charter, the FALCON commences a new time charter with a rate of $39,500 per day for 21 to 23 months. The charterer has an option to extend the charter period by 11 to 13 months at a daily time charter rate of $41,000.

(4)

The daily rate for the HARRIER is $27,000 for the first year and $21,000 for the second year. Revenue recognition is based on an average daily rate of $24,000.

(5)

The previous time charter on the HERON at a daily rate of $24,000 ended on January 28, 2008. The vessel commenced a new time charter with a rate of $26,375 per day for 36 to 39 months. The charterer has an option for a further 11 to 13 months at a time charter rate of $27,375 per day. The charterer has a second option for a further 11 to 13 months at a time charter rate of $28,375 per day.

(6)

The charter rate for the JAEGER may reset at the beginning of each month based on the average time charter rate for the Baltic Supramax Index, but in no case be greater than $27,500 per day or less than $22,500 per day.

(7)

The charterer of the KESTREL I has exercised its option to extend the charter period by 11 to 13 months at a daily time charter rate of $20,000 per day.

(8)

The MERLIN is on a 36 to 39 month time charter at the following daily rates: $27,000 for the first year, $25,000 for the second year and $23,000 for the third year. Revenue recognition is based on an average daily rate of $25,000.

(9)

The charterer of the OSPREY I has exercised its option to extend the charter period by up to 11 to 13 months at a time charter rate of $25,000 per day. The charterer has an additional option to extend for a further 11 to 13 months at a time charter rate of $25,000 per day.

(10)

The SPARROW was previously on a time charter at a base rate of $24,000 per day for 11 to 13 months with a profit share of 30% of up to the first $3,000 per day over the base rate. This charter ended on February 28, 2008.

(11)

The TERN previously was on a time charter at a daily rate of $19,000. This charter ended in March 2008 and the charterer has exercised its option to extend the charter period by 11 to 13 months at a time charter rate of $20,500 per day.

(12)

The charterer of the SHRIKE has an option to extend the charter period by 12 to 14 months at a daily time charter rate of $25,600.

(13)

The charterer of the SKUA has an option to extend the charter period by 11 to 13 months at a daily time charter rate of $25,200.

(14)

The KITTIWAKE is employed on a time charter for 11 to 13 months. The charter rate may reset at the beginning of each month based on the average time charter rate for the Baltic Supramax Index, but in no case be greater than $30,400 per day or less than $24,400 per day.

 

 

 

9

 


As of March 31, 2008, the Company has contracted for 35 vessels to be constructed. The following table represents certain information about the Company’s newbuilding vessels and their employment upon delivery:

Vessel

 

Dwt

 

Year
Built -
Expected
Delivery (1)

 

Time Charter
Employment
Expiration (2)

 

Daily
Time
Charter
Hire Rate (3)

 

Profit
Share

 

Wren 

 

53,100

 

Aug 2008

 

Feb 2012
Feb 2012 to Dec 2018/Apr 2019

 

$24,750
$18,000

 

—
50% over $22,000

 

Woodstar 

 

53,100

 

Oct 2008

 

Jan 2014
Jan 2014 to Dec 2018/Apr 2019

 

$18,300
$18,000

 

—
50% over $22,000

 

Crowned Eagle

 

56,000

 

Nov 2008

 

Charter Free

 

—

 

—

 

Crested Eagle

 

56,000

 

Feb 2009

 

Charter Free

 

—

 

—

 

Stellar Eagle

 

  6,000

 

Apr 2009

 

Charter Free

 

—

 

—

 

Thrush 

 

53,100

 

Sep 2009

 

Charter Free

 

—

 

—

 

Bittern

 

58,000

 

Sep 2009

 

Dec 2014 
Dec 2014 to Dec 2018/Apr 2019

 

$18,850
$18,000

 

—
50% over $22,000

 

Canary 

 

58,000

 

Oct 2009

 

Jan 2015
Jan 2015 to Dec 2018/Apr 2019

 

$18,850
$18,000

 

—
50% over $22,000

 

Thrasher 

 

53,100

 

Nov 2009

 

Feb 2016
Feb 2016 to Dec 2018/Apr 2019

 

$18,400
$18,000

 

—
50% over $22,000

 

Crane

 

58,000

 

Nov 2009

 

Feb 2015
Feb 2015 to Dec 2018/Apr 2019

 

$18,850
$18,000

 

—
50% over $22,000

 

Avocet 

 

53,100

 

Dec 2009

 

Mar 2016
Mar 2016 to Dec 2018/Apr 2019

 

$18,400
$18,000

 

—
50% over $22,000

 

Egret (4)

 

58,000

 

Dec 2009

 

Sep 2012 to Jan 2013

 

$17,650

 

50% over $20,000

 

Golden Eagle

 

56,000

 

Jan 2010

 

Charter Free

 

—

 

—

 

Gannet (4)

 

58,000

 

Jan 2010

 

Oct 2012 to Feb 2013

 

$17,650

 

50% over $20,000

 

Imperial Eagle

 

56,000

 

Feb 2010

 

Charter Free

 

—

 

—

 

Grebe(4)

 

58,000

 

Feb 2010

 

Nov 2012 to Mar 2013

 

$17,650

 

50% over $20,000

 

Ibis (4)

 

58,000

 

Mar 2010

 

Dec 2012 to Apr 2013

 

$17,650

 

50% over $20,000

 

Jay

 

58,000

 

Apr 2010

 

Sep 2015
Sep 2015 to Dec 2018/Apr 2019

 

$18,500
$18,000

 

50% over $21,500
50% over $22,000

 

Kingfisher

 

58,000

 

May 2010

 

Oct 2015
Oct 2015 to Dec 2018/Apr 2019

 

$18,500
$18,000

 

50% over $21,500
50% over $22,000

 

Martin

 

58,000

 

Jun 2010

 

Dec 2016 to Dec 2017

 

$18,400

 

—

 

Besra (5)

 

58,000

 

Oct 2010

 

Charter Free

 

—

 

—

 

Cernicalo (5)

 

58,000

 

Jan 2011

 

Charter Free

 

—

 

—

 

Nighthawk 

 

58,000

 

Mar 2011

 

Sep 2017 to Sep 2018

 

$18,400

 

—

 

Oriole

 

58,000

 

Jul 2011

 

Jan 2018 to Jan 2019

 

$18,400

 

—

 

Fulmar (5)

 

58,000

 

Jul 2011

 

Charter Free

 

—

 

—

 

Owl 

 

58,000

 

Aug 2011

 

Feb 2018 to Feb 2019

 

$18,400

 

—

 

Petrel (4)

 

58,000

 

Sep 2011

 

Jun 2014 to Oct 2014

 

$17,650

 

50% over $20,000

 

Goshawk (5)

 

58,000

 

Sep 2011

 

Charter Free

 

—

 

—

 

Puffin (4)

 

58,000

 

Oct 2011

 

Jul 2014 to Nov 2014

 

$17,650

 

50% over $20,000

 

Roadrunner (4)

 

58,000

 

Nov 2011

 

Aug 2014 to Dec 2014

 

$17,650

 

50% over $20,000

 

Sandpiper (4)

 

58,000

 

Dec 2011

 

Sep 2014 to Jan 2015

 

$17,650

 

50% over $20,000

 

Snipe

 

58,000

 

Jan 2012

 

Charter Free

 

—

 

—

 

Swift

 

58,000

 

Feb 2012

 

Charter Free

 

—

 

—

 

Raptor

 

58,000

 

Mar 2012

 

Charter Free

 

—

 

—

 

Saker

 

58,000

 

Apr 2012

 

Charter Free

 

—

 

—

 

(1)

Vessel build and delivery dates are estimates based on guidance received from shipyard.

(2)

The date range represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter.

(3)

The time charter hire rates presented are gross daily charter rates before brokerage commissions, ranging from 2.25% to 6.25%, to third party ship brokers.

(4)

The charterer has an option to extend the charter by 2 periods of 11 to 13 months each.

(5)

Options for construction exercised on December 27, 2007.

 

 

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Glossary of Terms:

Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.

Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Operating days: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

Conference Call Information

As previously announced, members of Eagle Bulk’s senior management team will host a teleconference and webcast at 8:30 a.m. ET on Wednesday, May 7, 2008, to discuss these results.

To participate in the teleconference, investors and analysts are invited to call 866-356-3093 in the U.S., or 617-597-5381 outside of the U.S., and reference participant code 39649226. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.

A replay will be available following the call until 12:00 a.m. ET on May 14th, 2008. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 26938903.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is a leading global owner of Supramax dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

 

 

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Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities and Exchange Commission.

Visit our website at www.eagleships.com

 

Contact:

Company Contact:

Alan Ginsberg

Chief Financial Officer

Eagle Bulk Shipping Inc.

Tel. +1 212-785-2500

 

Investor Relations / Media:

Jon Morgan

Perry Street Communications, New York

Tel. +1 212-741-0014

Source: Eagle Bulk Shipping Inc.

 

 

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