Eagle Bulk Shipping Inc. (NYSE:EGLE) Q4 2022 Earnings Conference Call March 3, 2023 8:00 AM ET

Company Participants

Gary Vogel - Chief Executive Officer

Frank De Costanzo - Chief Financial Officer

Conference Call Participants

Omar Nokta - Jefferies

Ben Nolan - Stifel

Liam Burke - B Riley

Greg Lewis - BTIG

Operator

Good day and thank you for standing by. Welcome to the Eagle Bulk Shipping Fourth Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question and answer session. [Operator Instructions]

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today Gary Vogel, Chief Executive Officer. Please go ahead.

Gary Vogel

Thank you and good morning. I’d like to welcome everyone to Eagle Bulk’s fourth quarter 2022 earnings call. To supplement our remarks today, I would encourage participants to access the slide presentation that is available on our website at 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 risk and uncertainties.

You should not place undue reliance on these forward-looking statements. Please refer to our filings with the Securities and 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.

Our discussion today also includes certain non-GAAP financial measures, including adjusted net income, EBITDA, adjusted EBITDA and TCE. Please refer to the appendix in the presentation and our earnings release, filed with the Securities and Exchange Commission for more information concerning non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measures.

Please turn to slide six. We cemented a record annual profit in 2022 achieving net income of $248 million or $19.09 per share basic. These extraordinary results are reflective of the many actions we have taken over the past years, including our vessel sale and purchase strategy, encompassing 55 transactions, our segment leading focus on scrubbers, our differentiated active management approach to trading ships and our efforts to optimize the balance sheet.

For Q4, revenues and earnings came off versus the prior quarter as freight rates continued to weaken through the end of the year and cost came in higher due to expenses relating to recent vessel purchase activity, general inflationary pressures and certain year end non-cash impacts.