Wednesday, February 29, 2012

Eagle Bulk Shipping Inc. - Earnings Estimate For 2011 Q4

For the quarter ended December 31st, 2011, we estimate that Eagle Bulk Shipping Inc. (NASDAQ: EGLE) generated basic loss per common share of ($0.05) on net loss of ($3,200,000).

We estimate that the company’s fleet of 45 owned-vessels generated net TCE Revenues of $59,900,000 for an average TCE of $14,600. We also estimate that EBITDA for the quarter was $26,900,000, and Adjusted EBITDA (for credit agreement purposes) was $28,900,000.

Our estimate is based on the following key assumptions: (I) It excludes the results of the company’s freight trading operations, (II) It excludes any new provision for bad debt with regards to Korea Line, or any write-down of vessel values, and (III) Two of the company’s vessels were dry-docked during the quarter, resulting in 22 total days off-hire.

As of December 31st, 2011, we estimate that book capitalization was $1.80 billion, including shareholders’ equity of $0.67 billion and total debt of $1.13. Based on the above its debt to total capitalization ratio was 62.8%.

According to our estimates, EGLE had approximately $23,000,000 cash on hand (including restricted cash), as of the end of the fourth quarter. EGLE also had access to an additional amount of $21,875,735 under its revolving credit facility. We must note that based on the amended credit agreement with its lenders, the company has to maintain a minimum liquidity of $500,000 per vessel or total of $22,500,000 (including any undrawn amount from its credit facility), from January 31st, 2012 until March 30th, 2012.

Eagle Bulk Shipping owns a modern diversified fleet of 45 SUPRAMAX dry cargo vessels with a total DWT capacity of approximately 2,450,000 MT, and an average age per vessel of 4.8 years as of December 31st, 2011. The company completed its new-building program during the fourth quarter and currently has no vessels on order.