Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Q3 2024 Earnings Call Transcript November 13, 2024 8:00 AM ET
Company Participants
Stefan Neely - IR, Vallum Advisors
Mark Filanowski - CEO
Gianni Del Signore - CFO
Mads Petersen - COO
Conference Call Participants
Liam Burke - B. Riley
Poe Fratt - AGP
Climent Molins - Value Investor’s
Operator
Good morning. My name is Shelby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions Third Quarter 2024 Earnings Teleconference. Today's call is being recorded and will be available for replay beginning at 11:00 a.m. Eastern Standard Time. The recording can be accessed by dialing (800) 839-9374 or (402) 220-6087. All lines are currently mutes, and after the prepared remarks, there will be a live question-and-answer session. [Operator Instructions] It is now my pleasure to turn the floor over to Stefan Neely with Vallum Advisors.
Stefan Neely
Thank you, operator, and welcome to the Pangaea Logistics Solutions third quarter 2024 results conference call. Leading the call with me today is CEO, Mark Filanowski; Chief Financial Officer, Gianni Del Signore; and COO, Mads Petersen.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions.
With that, I would like to turn the call over to Mark.
Mark Filanowski
Thank you, Stefan, and welcome to those joining us on the call today. After the market closed yesterday, we issued a release detailing our third quarter 2024 results. During the third quarter, we continued to advance our value creation strategy through a combination of targeted fleet expansion, strong operational execution and accretive inorganic growth, all while continuing to deliver consistently strong financial results amid a seasonal peak in Arctic dry bulk demand.
As we announced in September, we've entered into a definitive agreement to merge 15 handysize dry bulk vessels owned by M.T. Maritime into our dry bulk fleet, which will number 41 ships after the transaction. This strategic acquisition is accretive to both our net asset value and also to our adjusted EBITDA. Once complete, we expect that the MTM transaction will add materially to our annualized adjusted EBITDA. We look forward to having the MTM transaction closed by year-end, subject to the approval of our shareholders, positioning Pangaea to deliver an expanded portfolio of services across a growing customer base in the year ahead. And two weeks ago, we acquired the remaining 50% interest in our post-panamax ice class 1A vessels from a joint venture partner, solidifying our position in our ice class niche. In addition to these two transactions, during the quarter ended September 30, we took delivery of 2 58,000 deadweight ton sister ships built in 2016, which expanded our own fleet of vessels to 26 ships. We also continued to make progress on the expansion of our terminal and stevedore operations in the Port of Tampa. With the added scale provided by these transactions, we expect to materially increase both our shipping days and logistics operations at both new and existing ports of operation over the coming year, consistent with integrated shipping and logistics model.