Eagle Bulk Shipping Inc. (NYSE:EGLE) Q3 2022 Results Conference Call November 4, 2022 8:00 AM ET

Company Participants

Gary Vogel - Chief Executive Officer

Frank De Costanzo - Chief Financial Officer

Conference Call Participants

Omar Nokta - Jefferies

Benjamin Nolan - Stifel

Liam Burke - B. Riley Financial

Poe Fratt - Alliance Global Partners

Climent Molins - Value Investor's Edge

Operator

Good day and thank you for standing by. Welcome to the Eagle Bulk’s Third Quarter 2022 Earnings Conference 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 Gary Vogel. Please go ahead.

Gary Vogel

Thank you, and good morning. I would like to welcome everyone to Eagle Bulk’s third 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 risks 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 now turn to Slide 6. Notwithstanding macro headwinds and heightened uncertainty surrounding geopolitical elements, Eagle was able to post another strong quarterly result, achieving Q3 net income of $77.2 million or $5.94 per share basis. Adjusting for non-cash mark-to-market gains on derivative hedges and other non-cash items net income came in at $74.3 million or $5.72 per share.

Based on this result and consistent with our stated capital allocation strategy, Eagle’s Board of Directors declared a cash dividend of $1.80 per share, equating to 30% of earnings. This is our 5th consecutive quarterly dividend bringing total shareholder distributions to $10.05 per share, since we adopted our capital allocation strategy just 13-months ago.