d1241704_8-k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2011


Eagle Bulk Shipping Inc.
(Exact name of registrant as specified in its charter)
Republic of the Marshall Islands
001-33831
98-0453513
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(IRS employer identification no.)
     
477 Madison Avenue
New York, New York
  
10022
(Address of principal executive offices)
  
(Zip Code)

(Registrant's telephone number, including area code): (212) 785-2500

 

 
 
(Former Name or Former Address, if Changed Since Last Report): None
 
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
    
 
[_]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[_]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[_]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[_]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


 
 
 

Item 2.02.                      Results of Operations and Financial Condition

On November 7, 2011 Eagle Bulk Shipping Inc. (the "Company") issued a press release (the "Press Release") relating to its financial results for the third quarter ended September 30, 2011.

In accordance with General Instruction B.2 to the Form 8-K, the information under this Item 2.02 and the Press Release, attached hereto as Exhibit 99.1, shall be deemed to be "furnished" to the Securities and Exchange Commission (the "SEC") and not be deemed to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section.



Item 9.01.                      Financial Statements and Exhibits

(d)           Exhibits

Exhibit Number
Description
99.1
Press Release dated November 7, 2011.
   

 

 
 
 


 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

 
 
EAGLE BULK SHIPPING INC.
 
(registrant)
   
Dated: November 9, 2011
By:
/s/ Alan S. Ginsberg
 
Name:
Alan S. Ginsberg
 
Title:
Chief Financial Officer


 

 
 
 

EXHIBIT INDEX

Exhibit No.
Description
99.1
Press Release dated November 7, 2011.



 
 
 
 
 
 Press Release    Exhibit 99.1
     
 
Eagle Bulk Shipping Inc. Reports Third Quarter 2011 Results

-- Completes Newbuilding Program-
 
NEW YORK, NY, November 7, 2011-- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) today announced its results for the third quarter ended September 30, 2011. 

For the Third Quarter:

 
·
Net reported loss of $5.9 million or $0.09 per share (based on a weighted average of 62,652,724 diluted shares outstanding for the quarter), compared to net income of $8.2 million, or $0.13 per share, for the comparable quarter in 2010.
 
·
Net revenues of $80.3 million, an increase of 10% compared to $72.8 million for the comparable quarter in 2010. Gross time charter and freight revenues increased 10% to $84.0 million, compared to only time charter revenues of $76.4 million for the comparable quarter in 2010.
 
·
EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $25,931,089 for the third quarter of 2011, compared with $41,129,782 for the third quarter of 2010.
 
·
Fleet utilization rate of 99.4%.
 
·
Took delivery of four newbuilding vessels, Owl, Petrel, Puffin, and Roadrunner.
 
·
Completed sale of Heron, 2001-built Supramax.

Subsequent Events:

 
·
Took delivery of the Sandpiper, the last vessel of our newbuilding program.

Sophocles N. Zoullas, Chairman and CEO, commented, "With the delivery of the Sandpiper, we have now successfully completed our newbuilding program. Eagle Bulk's fleet totals 45 vessels, with an average age of only 4.4 years, making it one of the largest and youngest Supramax fleets in the world.
 
"Going forward, the highly favorable operating characteristics of our fully-built Supramax fleet, together with strong commercial relationships in key global trading markets, should position our assets for relative outperformance in a challenging market." 

Results of Operations for the three-month period ended September 30, 2011 and 2010

For the third quarter of 2011, the Company reported a net loss of $5,872,211 or $0.09 per share, based on a weighted average of 62,652,724 diluted shares outstanding. In the comparable third quarter of 2010, the Company reported net income of $8,226,153 or $0.13 per share, based on a weighted average of 62,442,046 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross revenues in the quarter ended September 30, 2011 were $83,987,828, an increase of 10% from $76,410,067 recorded in the comparable quarter in 2010. The increase in gross revenues is attributable to voyage charter revenues in the quarter ended September 30, 2011 of $19,218,936, compared to $3,738,973 in the comparable quarter in 2010, and operation of a larger fleet offset by lower charter rates. Gross revenues recorded in the quarter ended September 30, 2011 and 2010, include an amount of $1,267,242 and $1,388,101, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the quarter ended September 30, 2011 and 2010 were $3,664,459 and $3,584,484, respectively. Net revenues during the quarter ended September 30, 2011, increased 10% to $80,323,369 from $72,825,583 in the comparable quarter in 2010.

 
 
 


Total operating expenses for the quarter ended September 30, 2011 were $72,507,439 compared with $51,248,337 recorded in the third quarter of 2010. The Company operated 44 vessels in the third quarter of 2011 compared with 38 vessels in the corresponding quarter in 2010. The increase in operating expenses was primarily due to increase in voyage expenses, charter hire expenses and operating a larger fleet size which includes increases in vessels crew cost, general and administrative expenses and vessel depreciation expense.
 
EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased to $25,931,089 for the third quarter of 2011, compared with $41,129,782 for the third quarter of 2010. (Please see below for a reconciliation of EBITDA to net income/loss).
 

Results of Operations for the nine-month period ended September 30, 2011 and 2010

For the nine months ended September 30, 2011, the Company reported net loss of $13,120,770 or $0.21 per share, based on a weighted average of 62,595,165 diluted shares outstanding. In the comparable period of 2010, the Company reported net income of $23,811,709 or $0.38 per share, based on a weighted average of 62,392,441 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross revenues for the nine-month period ended September 30, 2011 were $255,505,905, an increase of 26% from $202,834,935 recorded in the comparable period in 2010. The increase in gross revenues is attributable to voyage charter revenues in the nine-month period ended September 30, 2011 of $63,426,973, compared to $3,738,973 in the comparable nine-month period in 2010, and operation of a larger fleet offset by lower charter rates. Gross revenues recorded in the nine-month period ended September 30, 2011 and 2010, include an amount of $3,833,571 and $3,424,205, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the nine-month periods ended September 30, 2011 and 2010 were $12,084,373 and $10,152,787, respectively. Net revenues during the nine-month period ended September 30, 2011, increased 26% to $243,421,532 from $192,682,148 in the comparable period in 2010.

Total operating expenses were $220,906,297 in the nine-month period ended September 30, 2011 compared to $131,874,254 recorded in the same period of 2010. The increase in operating expenses was primarily due to increase in voyage expenses, charter hire expenses and operating a larger fleet size which includes increases in vessels crew cost, insurance cost, general and administrative expenses and vessel depreciation expense. General and administrative expenses include a $6,586,900 allowance for bad debts related to amounts receivable from Korea Lines Corporation who have filed for protective receivership and have received South Korea court approval for rehabilitation.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased by 32% to $78,863,461 for the nine months ended September 30, 2011 from $115,737,376 for the same period in 2010. (Please see below for a reconciliation of EBITDA to net income/loss).
 

Liquidity and Capital Resources

Net cash provided by operating activities during the nine-month periods ended September 30, 2011 and 2010, was $37,107,799 and $85,798,578, respectively. The decrease was primarily due to lower rates on charter renewals and increased operational costs.

Net cash used in investing activities during the nine-month period ended September 30, 2011, was $134,649,768, compared to $245,555,691 during the corresponding nine-month period ended September 30, 2010. Investing activities during the nine-month period ended September 30, 2011 and 2010 related primarily to making progress payments and incurring related vessel construction expenses for the newbuilding vessels, of which seven and twelve delivered during the first nine months of 2011 and 2010, respectively.

 
 
 


Net cash used in financing activities during the nine-month period ended September 30, 2011, was $4,305,717, compared to net cash provided by financing activities of $217,549,637 during the corresponding nine-month period ended September 30, 2010. Financing activities during the nine-month period ended September 30, 2010, primarily involved borrowings of $223,494,867 from our revolving credit facility.  
 
As of September 30, 2011, our cash balance was $27,273,994, compared to a cash balance of $129,121,680 at December 31, 2010. In addition, our Restricted cash balance include $276,056, for collateralizing letters of credit relating to our office leases and $1,645,804 which collateralize for our derivatives position as of September 30, 2011.

At September 30, 2011, the Company's debt consisted of $1,129,478,741 in net borrowings under the amended Revolving Credit Facility. These borrowings consisted of $1,120,115,801 for the 44 vessels currently in operation and $9,362,940 to fund the Company's newbuilding program.

On September 26, 2011, the Company entered into a Sixth Amendatory and Commercial Framework Implementation Agreement (the "Sixth Amendment") to its Third Amended and Restated Credit Agreement dated October 19, 2007.  The Commercial Framework Agreement expires on April 30, 2012.

Among other provisions, the Sixth Amendment suspends the Company's compliance with the Minimum Adjusted Net Worth covenant until April 30, 2012. It also suspends compliance with the Minimum Liquidity covenant until January 30, 2012; from January 31, 2012 until March 30, 2012, the Minimum Liquidity covenant is reduced to $500,000 multiplied by the number of vessels owned; and from March 31 until April 29, 2012 the Company is required to maintain cash and cash equivalents in the amount of $27,000,000 and thereafter in the amount of $36,000,000. Until April 30, 2012, the calculation of Minimum Liquidity covenant includes undrawn facility amounts as cash and cash equivalents. As of September 30, 2011 the undrawn amount is $21,875,735. The Sixth Amendment requires the Company to obtain the lenders' consent for additional vessel dispositions during the commercial framework period, and to make reasonable efforts to meet certain reporting requirements to the lenders.

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.

 
 
 


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
    
Nine Months Ended
  
   
September 30, 2011
    
September 30, 2010
    
September 30, 2011
    
September 30, 2010
  
Net Income (loss)
  
$
(5,872,211
 )   
$
8,226,153
    
$
(13,120,770
 )   
$
23,811,709
  
Interest Expense
    
12,390,455
      
13,432,885
      
35,399,362
      
37,217,625
  
Depreciation and Amortization
    
18,660,293
      
17,193,853
      
53,459,509
      
46,437,290
  
Amortization of fair value below contract value of time charter acquired
    
(1,267,242
)
    
(1,388,101
)
    
(3,833,571
)
    
(3,424,205
)
EBITDA
    
23,911,295
      
37,464,790
      
71,904,530
      
104,042,419
  
Adjustments for Exceptional Items:
                                
Non-cash Compensation Expense (1)
    
2,019,794
      
3,664,992
      
6,958,931
      
11,694,957
  
Credit Agreement EBITDA
  
$
25,931,089
    
$
41,129,782
    
$
78,863,461
    
$
115,737,376
  

(1)  Stock based compensation related to stock options and restricted stock units.

Capital Expenditures and Drydocking

Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels which are expected to enhance the revenue earning capabilities and safety of these vessels.

We may incur additional capital expenditures from time to time related to our acquired vessels. As of September 30, 2011, our fleet consists of 44 vessels which are currently operational and one newbuilding vessels which have been contracted for construction.

In addition to acquisitions that we may undertake 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. Although the Company has some flexibility regarding the timing of its dry docking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years. Funding of these requirements is anticipated to be met with cash from operations. We anticipate that this process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating days during that period.

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. One vessel was drydocked in the three months ended September 30, 2011. 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)
  
December 31, 2011
     22    
$0.55 million
  
March 31, 2012
     22    
$0.55 million
  
June 30, 2012
     44    
$1.10 million
  
September 30, 2012
     -       -  
 
(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.



 
 
 




Summary Consolidated Financial and Other Data:

The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.
 
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30, 2011
    
September 30, 2010
    
September 30, 2011
    
September 30, 2010
  
                         
                         
Revenues, net of commissions
   $ 80,323,369     $ 72,825,583     $ 243,421,532     $ 192,682,148  
                                 
Voyage expenses
     11,995,164       1,438,521       35,941,960       1,438,521  
Vessel expenses
     22,000,678       19,075,233       62,763,849       50,605,567  
Charter hire expenses
     11,058,796       2,837,980       38,013,289       2,837,980  
Depreciation and amortization
     18,660,293       17,193,853       53,459,509       46,437,290  
General and administrative expenses
     8,283,432       10,993,761       30,218,614       30,845,907  
Loss (gain) from sale of vessel
     509,076       (291,011 )     509,076       (291,011 )
    Total operating expenses
     72,507,439       51,248,337       220,906,297       131,874,254  
                                 
                                 
Operating income
     7,815,930       21,577,246       22,515,235       60,807,894  
                                 
Interest expense
     12,390,455       13,432,885       35,399,362       37,217,625  
Interest income
     (35,796 )     (81,792 )     (122,930 )     (221,440 )
Other expense
     1,333,482       —       359,573       —  
    Total other expense, net
     13,688,141       13,351,093       35,636,005       36,996,185  
                                 
Net income (loss)
   $ (5,872,211 )   $ 8,226,153     $ (13,120,770 )   $ 23,811,709  
                                 
Weighted average shares outstanding :
                                
Basic
     62,652,724       62,224,675       62,595,165       62,163,617  
Diluted
     62,652,724       62,442,046       62,595,165       62,392,441  
 
                                
Per share amounts:
                                
Basic net income (loss)
   $ (0.09 )   $ 0.13     $ (0.21 )   $ 0.38  

Fleet Operating Data

   
Three Months Ended
    
Nine Months Ended
  
   
September 30, 2011
    
September 30, 2010
    
September 30, 2011
    
September 30, 2010
  
Ownership Days
     3,938       3,510       11,168       9,462  
Chartered-in under operating lease Days
     582       140       2,240       140  
Available Days
     4,489       3,628       13,336       9,520  
Operating Days
     4,464       3,623       13,243       9,480  
Fleet Utilization
     99.4 %     99.9 %     99.3 %     99.6 %


 
 
 




CONSOLIDATED BALANCE SHEETS

   
September 30, 2011 (unaudited)
    
December 31, 2010
  
ASSETS:
            
Current assets:
            
Cash and cash equivalents
   $ 27,273,994     $ 129,121,680  
Accounts receivable
     22,482,466       14,366,495  
Prepaid expenses
     3,658,581       3,459,721  
Inventories
     8,277,696       3,190,052  
Fair value above contract value of time charters acquired
     573,428       594,611  
     Total current assets
     62,266,165       150,732,559  
Noncurrent assets:
                
Vessels and vessel improvements, at cost, net of accumulated
depreciation of $220,746,446 and $176,824,438, respectively 
     1,762,282,000       1,509,798,249  
Advances for vessel construction
     22,292,800       191,477,225  
Other fixed assets, net of accumulated amortization of $274,224 and  $153,375,
        respectively 
     642,287       420,204  
Restricted cash
     1,921,860       19,790,341  
Deferred drydock costs
     3,319,881       4,217,071  
Deferred financing costs
     12,928,468       16,458,496  
Fair value above contract value of time charters acquired
     3,182,070       3,608,812  
Other assets and accounts receivable, net of allowance
     4,160,020       70,001  
       Total noncurrent assets
     1,810,729,386       1,745,840,399  
                 
Total assets
   $ 1,872,995,551     $ 1,896,572,958  
                 
LIABILITIES & STOCKHOLDERS' EQUITY
                
Current liabilities:
                
Accounts payable
   $ 9,398,653     $ 6,089,273  
Accrued interest
     4,640,699       6,651,554  
Other accrued liabilities
     14,560,107       5,850,474  
Deferred revenue and fair value below contract value of time charters acquired
     6,009,310       5,705,326  
Unearned revenue
     5,857,686       6,091,332  
Fair value of derivative instruments
     505,647       127,758  
     Total current liabilities
     40,972,102       30,515,717  
Noncurrent liabilities:
                
Long-term debt
     1,129,478,741       1,151,354,476  
Deferred revenue and fair value below contract value of time charters acquired
     18,914,504       23,480,740  
Fair value of derivative instruments
     13,444,552       22,135,507  
       Total noncurrent liabilities
     1,161,837,797       1,196,970,723  
Total liabilities
     1,202,809,899       1,227,486,440  
Commitment and contingencies
                
Stockholders' equity:
                
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued
     —       —  
Common stock, $.01 par value, 100,000,000 shares authorized, 62,663,821 shares issued   and outstanding
     626,638       625,604  
Additional paid-in capital
     743,779,073       738,251,158  
Retained earnings (net of accumulated dividends declared of $262,118,388 as of
        September 30, 2011 and December 31, 2010, respectively)
     (60,775,507 )     (47,654,737 )
Accumulated other comprehensive loss
     (13,444,552 )     (22,135,507 )
     Total stockholders' equity
     670,185,652       669,086,518  
                 
Total liabilities and stockholders' equity
   $ 1,872,995,551     $ 1,896,572,958  

 

 
 
 


CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
   
Nine Months Ended
  
 
  
September 30, 2011
    
September 30, 2010
  
Cash flows from operating activities:
            
Net income (loss)
   $ (13,120,770 )   $ 23,811,709  
  Adjustments to reconcile net income to net cash provided by operating activities:
                
  Items included in net income not affecting cash flows:
                
Depreciation
     51,014,334       44,151,616  
Amortization of deferred drydocking costs
     2,445,175       2,285,674  
Amortization of deferred financing costs
     3,014,720       2,246,917  
Amortization of fair value below contract value of time charter acquired
     (3,833,571 )     (3,424,205 )
Loss (Gain) from sale of vessel
     509,076       (291,011 )
Unrealized gain from forward freight agreements, net
     377,889       —  
Allowance for accounts receivable
     6,586,900       —  
Non-cash compensation expense
     6,958,931       11,694,957  
Drydocking expenditures
     (2,074,115 )     (1,505,520 )
  Changes in operating assets and liabilities:
                
Accounts receivable
     (16,264,471 )     (4,028,033 )
Other assets
     (2,528,419 )     (60,582 )
Prepaid expenses
     (198,860 )     85,783  
Inventories
     (5,087,644 )     (884,234 )
Accounts payable
     3,309,380       612,861  
Accrued interest
     (2,495,987 )     (3,739,062 )
Accrued expenses
     8,709,633       11,630,204  
Deferred revenue
     19,244       (262,098 )
Unearned revenue
     (233,646 )     3,473,602  
  Net cash provided by operating activities
     37,107,799       85,798,578  
                 
  Cash flows from investing activities:
                
Vessels and vessel improvements and advances for vessel construction
     (155,686,543 )     (266,422,482 )
Purchase of other fixed assets
     (342,932 )     (188,993 )
Proceeds from sale of vessel
     22,511,226       21,055,784  
Changes in restricted cash
     (1,131,519 )     —  
  Net cash used in investing activities
     (134,649,768 )     (245,555,691 )
                 
  Cash flows from financing activities:
          
­­­­­
  
Bank borrowings
     —       223,494,867  
Repayment of bank debt
     (21,875,735 )     —  
Changes in restricted cash
     19,000,000       (5,500,000 )
Cash used to settle net share equity awards
     (1,429,982 )     (445,230 )
  Net cash (used in) provided by financing activities 
     (4,305,717 )     217,549,637  
                 
Net (decrease) increase in cash
     (101,847,686 )     57,792,524  
Cash at beginning of period
     129,121,680       71,344,773  
  Cash at end of period
   $ 27,273,994     $ 129,137,297  
 

 
 
 
 


The following table represents certain information about the Company's revenue earning charters on its operating fleet:



 
Vessel
Year Built
 
Dwt
 
Time Charter Expiration (1)
Daily Time
Charter Hire Rate
Avocet
2010
53,462
Dec 2018/Apr 2019
$17,000(2)
Bittern
2009
57,809
Dec 2018/Apr 2019
$17,000(2)
Canary
2009
57,809
Dec 2018/Apr 2019
$17,000(2)
Cardinal
2004
55,362
Dec 2012 to Feb 2013
Index(3)
Condor(4)
2001
50,296
Oct 2011
$14,500
Crane
2010
57,809
Dec 2018/Apr 2019
$17,000(2)
Crested Eagle
2009
55,989
Dec 2011 to Feb 2012
$13,300
Crowned Eagle
2008
55,940
Aug 2012 to Oct 2012
$14,000
Egret Bulker
2010
57,809
Oct 2012 to Feb 2013
$17,650(5)
Falcon
2001
50,296
Dec 2011 to Mar 2012
$14,000
Gannet Bulker
2010
57,809
Jan 2013 to July 2013
$17,650(5)
Golden Eagle
2010
55,989
Nov 2011 to Jan 2012
$15,750
Goldeneye(6)
2002
52,421
Nov 2011 to Dec 2011
$17,000
Grebe Bulker
2010
57,809
Feb 2013 to Jun 2013
$17,650(5)
Harrier(4)
2001
50,296
Oct 2011
$12,500
Hawk I
2001
50,296
Nov 2011 to Jan 2012
$13,500
Ibis Bulker
2010
57,775
Mar 2013 to Jul 2013
$17,650(5)
Imperial Eagle
2010
55,989
Nov 2012 to Feb 2013
Index(3)
Jaeger
2004
52,248
Nov 2012 to Jan 2013
Index(3)
Jay
2010
57,802
Dec 2018/Apr 2019
$17,000(2)
Kestrel I
2004
50,326
Aug 2012 to Oct 2012
Index
Kingfisher
2010
57,776
Dec 2018/Apr 2019
$17,000(2)
Kite
1997
47,195
Nov 2011
$12,000
Kittiwake
2002
53,146
Jan 2012 to Mar2012
$14,950
Martin
2010
57,809
Dec 2018/Apr 2019
$17,000(2)
Merlin(4)
2001
50,296
Oct 2011
Voyage
 Nighthawk
2011
57,809
Dec 2018/Apr 2019
$17,000(2)
 Oriole
2011
57,809
Dec 2018/Apr 2019
$17,000(2)
 Osprey I
2002
50,206
Dec 2011 to Mar 2012
$14,000
 Owl
2011
57,809
Dec 2018/Apr 2019
$17,000(2)

 
 
 


 
Vessel
Year Built
 
Dwt
 
Time Charter Expiration (1)
Daily Time
Charter Hire Rate
Petrel
2011
57,809
Jul 2014 to Nov 2014
$17,650(5)
Puffin
2011
57,809
May 2014 to Sep 2014
$17,650(5)
Peregrine
2001
50,913
Nov 2011 to Feb 2012
$12,650
Redwing(4)
2007
53,411
Oct 2011
$15,250
Roadrunner(7)
2011
57,809
Nov 2011
Voyage
Shrike
2003
53,343
Jan 2012 to Mar 2012
$14,500
Skua
2003
53,350
Dec 2011 to Feb 2012
$14,500
Sparrow
2000
48,225
Nov 2011 to Feb 2012
$13,500
Stellar Eagle(4)
2009
55,989
Oct 2011
$15,500
Tern
2003
50,200
Dec 2011
$14,000
Thrasher
2010
53,360
Dec 2018/Apr 2019
$17,000(2)
Thrush
2011
53,297
Jan 2012 to Apr 2012
$15,500
Woodstar
2008
53,390
Dec 2018/Apr 2019
$17,000(2)
Wren
2008
53,349
Dec 2018/Apr 2019
$17,000(2)

 
(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. The time charter hire rates presented are gross daily charter rates before brokerage commissions, ranging from 1.25% to 6.25%, to third party ship brokers.
 
(2)Up to December 2015 with 100% profit share between $17,000 to $21,000 and 50% profit share thereafter, from January 2016 to Dec 2018/Apr 2019 with 50% profit share above $17,000.
 
(3)Index, an average of the trailing Baltic Supramax Index.
 
(4)Upon conclusion of the previous time charter the vessel will commence a short term time charter for up to six months.
 
(5)    With a 50% profit share over $20,000 per day. The charterer has an option to extend the charter by 2 periods of 11 to 13 months each.
 
(6)Upon conclusion of the previous time charter the vessel will commence an index based for 11 to 14 months charter.
 
(7)Upon conclusion of the previous time charter the vessel will commence into a long-term time charter with expiration in October 2014 to December 2014 at a daily charter rate of $17,650 with a 50% profit share over $20,000 per day. The charterer has an option to extend the charter by 2 periods of 11 to 13 months each.

As of September 30, 2011, the following table represents certain information about the Company's newbuilding vessel being constructed and its expected employment upon delivery:

Vessel
  
Dwt
    
Year Built(1)
  
Time Charter Employment Expiration (2)
  
Daily Time Charter Hire Rate (3)
  
 
Profit Share
Sandpiper (4) 
     58,000       2011  
Jul 2014 to Nov 2014
   $ 17,650  
50% over $20,000
 
 
(1)Vessel was delivered on October 19, 2011.
 
(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 rate presented is the gross daily charter rate before brokerage commissions.
 
(4)The charterer has an option to extend the charter by two periods of 11 to 13 months each.

 
 
 


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.

Chartered-in under operating lease days: The Company defines chartered-in under operating lease days as the aggregate number of days in a period during which the Company chartered-in vessels.

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.

Fleet utilization:  The Company calculates fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at very high utilization rates.
 
Conference Call Information

As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast on Tuesday, November 8th, to discuss these results.

To participate in the teleconference, investors and analysts are invited to call 866-203-2528 in the U.S., or 617-213-8847 outside of the U.S., and reference participant code 56185303. 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 11:59 PM ET on November 15, 2011. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 98813289.

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.

 
 
 


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:
     Jonathan Morgan
     Perry Street Communications, New York
     Tel. +1 212-741-0014
 
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Source: Eagle Bulk Shipping Inc.