Friday, May 4, 2012

Eagle Bulk Shipping Inc. - Earnings Estimate For 2012 Q1

For the quarter ended March 31st, 2012, we estimate that Eagle Bulk Shipping Inc. (NASDAQ: EGLE) generated basic loss per common share of ($0.29) on net loss of ($18,500,000).

We estimate that the company’s fleet of 45 owned-vessels generated net TCE Revenues of $42,100,000 for an average TCE of $10,400. We also estimate that EBITDA for the quarter was $11,000,000, and Adjusted EBITDA (for credit agreement purposes) was $13,100,000.

Our estimate is based on the following key assumptions: (I) It excludes the results of the company’s freight trading operations, (II) the company’s vessels that traded in the spot market earned an average gross TCE of $9,200 during the quarter, and (III) Two of the company’s vessels were dry-docked during the quarter, resulting in 30 days off-hire.
As of March 31st, 2012, we estimate that book capitalization was $1.79 billion, including shareholders’ equity of $0.66 billion and total debt of $1.13. Based on the above its debt to total capitalization ratio was 63.2%. As of the end of the quarter the company had an undrawn amount of $21.9 million under its credit facility.
According to our estimates, EGLE had approximately $28,000,000 cash on hand (including restricted cash), as of the end of the first quarter. We must note that based on the latest amendment of the credit agreement with its lenders, the company has to maintain minimum liquidity (cash & cash equivalents plus any undrawn amount under the credit facility) of $36,000,000 as of May 31st, 2012.

In addition, beginning on June 1st, 2012, EGLE has to maintain a minimum cash balance of $32,094,006, representing the first payment due under its credit facility.

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 5.0 years as of March 31st, 2012. The company completed its new-building program during the fourth quarter of last year and currently has no vessels on order.