Friday, July 27, 2012

Baltic Trading Limited - Earnings Estimate For 2012 Q2

For the quarter ended June 30th, 2012, we estimate that Baltic Trading Limited (NYSE: BALT) generated net loss of $3,200,000 or ($0.14) basic earnings per share. We estimate that the company’s net TCE revenues were $7,350,000 & the fleet average TCE was $9,000. We also estimate that EBITDA were $1,600,000.

As of June 30th, 2012, we estimate that the company had $101,250,000 in debt outstanding and a total book capitalization of $372,000,000. Its debt to capitalization ratio stood at 27.2%. We also estimate that the company had cash on hand of $5,000,000.

BALT has $33,750,000 available under its credit facility, and is able to borrow up to $23,500,000 of that amount for working capital purposes. The company’s credit facility matures in November 2017. Based on current debt outstanding, BALT does not have any scheduled debt repayments until November 2016, which gives it tremendous financial flexibility during these adverse freight market conditions.

The company has in the past declared variable quarterly cash 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 would not have the capacity to declare a cash distribution 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 cash distribution between $0.05-$0.15 per share.

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 2.7 years as of June 30th, 2012.

Based on yesterday’s closing price of $3.21 per share, we estimate that BALT has a market capitalization of $72,900,000 and an enterprise value of $169,150,000.