Thursday, April 26, 2012

Baltic Trading Limited - Earnings Estimate For 2012 Q1

For the quarter ended March 31st, 2012, we estimate that Baltic Trading Limited (NYSE: BALT) generated net loss of $4,700,000 or ($0.21) basic earnings per share. We estimate that the company’s net TCE revenues for the quarter were $6,100,000 & the fleet average TCE was $7,400. We also estimate that during the first quarter of 2012 BALT eked out a positive EBITDA of $100,000.

As of March 31st, 2012, we estimate that the company had $101,250,000 in debt outstanding and a total book capitalization of $376,000,000. Its debt to capitalization ratio stood at 26.9%. We also estimate that the company had cash on hand of $5,200,000. BALT also had $38,750,000 available under its credit facility, to finance future vessel acquisitions and for working capital purposes.

The company has in the past declared variable quarterly dividends based on cash available for distribution, but also after taking into account the company’s cash flow & liquidity and capital resources. Based on the company’s formula for cash available for distribution, BALT will not have the capacity to declare a dividend this quarter. Taking into account however that: (I) BALT has paid a consecutive dividend since its IPO in March 2010, and (II) BALT has previously declared dividends in excess of cash available for distribution, we expect BALT to declare a token dividend of $0.04 per share.

Based on yesterday’s closing price of $4.62 per share, we estimate that BALT has a market capitalization of $105,000,000 and an enterprise value of $199,000,000.

BALT operates a modern diversified fleet of 9 dry cargo vessels, consisting of 3 handy size vessels, 4 supramax size vessels and two cape size vessels, with a total DWT capacity of approximately 672,000 MT, and an average age of 2.4 years as of March 31st, 2012.