Friday, July 29, 2011

Eagle Bulk Shipping Inc. - Earnings Estimate For 2011 Q2

For the quarter ended June 30th, 2011, we estimate that Eagle Bulk Shipping Inc. (NASDAQ: EGLE) generated basic earnings per common share of $0.04 on net income of $2,200,000.

We estimate that the company’s fleet of 41 owned-vessels generated net TCE Revenues of approximately $58,700,000 for an average TCE of $16,100. We also estimate that EBITDA for the quarter was $29,200,000, and Adjusted EBITDA (for credit agreement purposes) was $31,400,000.

Our estimate is based on the following key assumptions: (I) It excludes the results of the company’s freight trading operations, (II) The new-building vessel M/V ORIOLE was delivered during the second quarter as scheduled, and (III) Two of the company’s vessels were dry-docked during the quarter, resulting in 22 total days off-hire.

As of June 30th, 2011, we estimate that book capitalization was $1.82 billion, including shareholders’ equity of $0.67 billion and total debt of $1.15 billion. We also estimate that its debt to total capitalization ratio was 63.1%.

As of June 30th, 2011, Eagle Bulk Shipping owned a modern diversified fleet of 41 SUPRAMAX dry cargo vessels with a total DWT capacity of approximately 2,215,000 MT, and an average age per vessel of 4.9 years. It also had on order 5 new building vessels, scheduled for delivery during 2011, with a total DWT capacity of approximately 290,000 MT. With the delivery of M/V ORIOLE, its remaining capital expenditures were approximately $73 million.

We estimate that, following the delivery of M/V ORIOLE, EGLE had approximately $63 million of unrestricted cash on hand as of the end of the second quarter. The company intends to finance its capital expenditures with cash on hand and cash generated from operations.