Eagle Bulk Shipping Inc. (NYSE:EGLE) Q3 2023 Earnings Conference Call November 3, 2023 8:00 AM ET

Company Participants

Gary Vogel - CEO

Costa Tsoutsoplides - CFO

Conference Call Participants

Liam Burke - B. Riley Financial

Benjamin Nolan - Stifel

Gregory Lewis - BTIG

Omar Nokta - Jefferies

Operator

Good day and thank you for standing by. Welcome to Eagle Bulk Shipping Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there’ll 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 would like to welcome everyone to Eagle Bulk’s third quarter 2023 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 TCE, TCE revenues, adjusted net income, EBITDA, and adjusted EBITDA. 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 6. The industry experienced a challenging market during Q3, with the BSI averaging just over 10,000 for the period, the weakest third quarter in three years. Our financial results for the quarter are reflective of the underlying freight environment that impacted our results as we generated a net loss of $5.1 million or $0.55 per share. We continue to execute on our strategy to monetize non-core older vessels. Specifically, we closed on the sale of the SANKATY EAGLE, a mid-aged, non-scrubber fitted Supramax. This was the third and last vessel in the End Block [ph] transaction we previously disclosed. The sale of the three ships generated a total of 35 million in profit for us, implying a levered IRR of 70% based on just a two-year investment period.