Pangaea Logistics Solutions Ltd. Q1 FY2025 earnings call

• The firm's first quarter performance reflects disciplined execution of its cargo-focused model, with TCE rates 33% above the prevailing market due to long-term contracts.
• Adjusted net loss was ~$2 million, adjusted EBITDA was $14.8 million. Total shipping days increased 24.6% y-o-y.
• Completed 160 days of planned off-hire for vessel dry dockings, with only four dockings remaining for the rest of the year.
• Integrated SSI fleet is proceeding as planned, expecting operating efficiencies and cost savings. Vessel operating expenses decreased in areas like insurance.
• Target to implement at least $2.5 million annually in cost savings by year-end.
• Dry bulk sector faces volatility, but operations not directly impacted by proposed tariffs. Over 95% of tonnage is non-agricultural bulks.
• Second quarter demand steady, TCE $12,524 per day. Board authorized $15 million share repurchase and $0.05 dividend.
• Focus on capital allocation, with expansion in port and logistics operations in Tampa, Port Charles, Louisiana, and Port of Aransas, Texas.

For the first quarter of 2025, Pangaea reported an adjusted net loss of approximately $2 million and adjusted EBITDA of $14.8 million. Total shipping days rose 24.6% year-over-year, primarily driven by the addition of SSI handy fleet vessels. On a comparable basis, shipping days increased by 41%. Over 95% of its tonnage is tied to non-agricultural bulks across Atlantic, European and Caribbean trade routes. For the second quarter, 4,275 shipping days have been booked, generating a TCE of $12,524 per day.

• Second quarter booked 4,275 shipping days with TCE $12,524 per day.
• Board authorized $15 million share repurchase program and $0.05 dividend.
• Prudent capital allocation strategy focusing on balance sheet strength, shareholder returns, and fleet modernization.

• Dry bulk sector experiences elevated levels of volatility and uncertainty.
• Potential indirect effects of proposed tariffs and port fees on market dislocations, though no material impact expected on owned fleet based on geographic focus and operating model.

Q: Liam Burke asks about the dividend cut and share buyback strategy.

A: Mark discusses that the Board is evaluating different ways to return capital to shareholders, including share buybacks and dividends, and will take a quarter-by-quarter approach.

Q: Poe Fratt inquires about the share buyback details and dividend cut rationale.

A: Mark explains the Board's consideration of share buybacks and the shift in dividend, while Gianni mentions the booking of shipping days and chartered-in days details.

Q: Michael Matheson asks about the percentage of long-term contracts booked for Q2 and onward and debt paydown.

A: Gianni responds that contract cover on the owned fleet averages around 30% over the year, and the company has a consistent debt paydown plan with a meaningful balloon payment due in early 2027.