Eagle Bulk back in the black

Eagle-Bulk

Eagle Bulk, one of the world’s largest owner-operators within the Supramax/Ultramax segment, reported financial results for the three months and year ended December 31, 2018.

Highlights for the Quarter:

  • Generated net revenues of $86.7 million, representing an increase of 16% compared to fourth quarter 2017
    ◦         TCE revenues (1) for the quarter equated to $51.8 million, an increase of 15% year-on-year
    ◦         Achieved a TCE (2) of $12,142 for the quarter, an increase of 16% year-on-year
  • Generated net revenues of $310.1 million, representing an increase of 31% compared to prior year
    ◦         TCE revenues (1) for the year equated to $192.5 million, an increase of 34% year-on-year
    ◦         Achieved a TCE (2) of $11,471 for the year, an increase of 26% year-on-year
  • Realized a net income of $6.5 million or $0.09 per basic and diluted share, compared to a net loss of $16.6 million or $0.24 per basic and diluted share in the fourth quarter 2017
  • Adjusted EBITDA(3) of $23.5 million, representing an increase of 37% compared to fourth quarter 2017
  • Amended Shipco bond terms to allow for a maximum of $25.0 million in vessel sale proceeds to be used towards the installation of exhaust gas cleaning systems (“scrubbers”) on Shipco vessels
  • In January 2019, completed a $208.4 million debt refinancing, extending maturities to 2024, added approximately $65.0 million in incremental liquidity
  • Expanded fleet scrubber initiative, bringing the total number of vessels to be fitted to 37
  • Looking ahead into the first quarter of 2019, the Company has attained a TCE of $9,124 with approximately 90% of the available days fixed for the period thus far

Gary Vogel, Eagle Bulk’s CEO, commented, “I am very pleased to report that the fourth quarter represents the eighth consecutive quarter where we have outperformed the benchmark Baltic Supramax Index, or BSI.  For the full year 2018, our TCE outperformance reached almost $900 per vessel per day, delivering roughly $15.0 million in incremental value based on our fleet size.  We continue to execute on our fleet renewal program with the objective to optimize and modernize the fleet, and during the first quarter of 2019, we have acquired a 2015-built Ultramax and sold two 18 year-old vessels.  In addition, we executed a refinancing which has allowed us to continue to strengthen our balance sheet – generating roughly $65.0 million in incremental liquidity, while lowering our cost of debt and extending maturity.”

1 TCE revenue is a non-GAAP financial measure. See the reconciliation and table of net revenues to TCE later in this release for more information on non-GAAP measures.
2 TCE is a non-GAAP financial measure. See the reconciliation and the table of net revenues to TCE later in this release for more information on non-GAAP measures.
3 Adjusted EBITDA is a non-GAAP financial measure. See the reconciliation and table of net income/(loss) to EBITDA and Adjusted EBITDA later in this release for more information on non-GAAP financial measures.

Fleet Operating Data

Three Months Ended For the Years Ended
December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017
Ownership Days 4,303 4,383 17,213 16,293
Chartered-in Days 850 1,050 3,294 3,353
Available Days 5,077 5,374 20,083 19,245
Operating Days 5,041 5,334 19,921 19,140
Fleet Utilization 99.3 % 99.3 % 99.2 % 99.5 %

Fleet Development

Vessels delivered into the fleet

  • Hamburg Eagle, an Ultramax (64k DWT / 2014-built) for $21.3 million.

Vessels acquired

  • Cape Town Eagle, an Ultramax (64k DWT / 2015-built) for $20.4 million.

Vessels sold after year-end

  • Condor (50k DWT / 2001-built) and Merlin (50k DWT /2001-built) for $6.1 million and $6.5 million respectively, net of selling expenses and commissions; delivered to the buyers in the first quarter of 2019.

Results of Operations for the three months and years ended December 31, 2018 and 2017

For the three months ended December 31, 2018, the Company reported net income of $6.5 million, or $0.09 per basic and diluted share, compared to a net loss of $16.6 million, or $0.24 per basic and diluted share, in the same period for the prior year.

For the year ended December 31, 2018, the Company reported net income of $12.6 million, or $0.18 per basic and diluted share, compared to a net loss of $43.8 million, or $0.63 per basic and diluted share, for the year ended December 31, 2017.

Revenues, net

Revenues, net for the three months ended December 31, 2018 were $86.7 million compared with $74.6 million in the comparable quarter in 2017. The increase in revenue was primarily due to an increase in charter hire rates offset by a decrease in available days primarily due to lower chartered in days.

Revenues, net for the year ended December 31, 2018 were $310.1 million compared to $236.8 million for the year ended December 31, 2017. Revenues, net increased by 31% compared to the prior year ended December 31, 2017 primarily due to an increase in charter hire rates attributable to an improvement in the drybulk market and increase in available days. The increase in available days was due to the acquisition of 10 Ultramax vessels during 2017 and two Ultramax vessels during 2018 offset by the sale of two vessels in 2018. The chartered-in days for the year ended December 31, 2018 were 3,294 compared to 3,353 in the prior year.

Voyage expenses

Voyage expenses for the three months ended December 31, 2018 were $24.7 million compared to $18.2 million in the comparable quarter in 2017. The increase was mainly attributable to an increase in the number of freight voyages in the current quarter compared to the comparable quarter in the prior year as well as increased bunker prices year over year.

Voyage expenses for the years ended December 31, 2018 and 2017 were $79.6 million and $62.4 million, respectively. Voyage expenses have primarily increased due to an increase in bunker prices in the current year compared to the prior year.

Vessel expenses

Vessel expenses for the three months ended December 31, 2018 were $20.1 million compared to $21.2 million in the comparable quarter in 2017. The decrease in vessel expenses is attributable to lower ownership days and lower insurance costs. The ownership days for the three months ended December 31, 2018 and December 31, 2017 were 4,303 and 4,383, respectively.

Average daily vessel operating expenses for our fleet for the three months ended December 31, 2018 and December 31, 2017 were $4,674 and $4,844, respectively.

Vessel expenses for the years ended December 31, 2018 and 2017 were $81.3 million and $78.6 million, respectively. The increase in vessel expenses is attributable to the increase in the owned fleet due to the purchase of 10 Ultramax vessels in 2017 and two Ultramax vessels in 2018 offset by the sale of four vessels during 2017 and two vessels during 2018. The ownership days for the year ended December 31, 2018 were 17,213 compared to 16,293 for the prior year ended December 31, 2017.

Average daily vessel operating expenses for our fleet for the year ended December 31, 2018 were $4,725 compared to $4,825 for the year ended December 31, 2017.

Charter hire expenses

Charter hire expenses for the three months ended December 31, 2018 were $10.2 million compared to $11.3 million in the comparable quarter in 2017. The decrease in charter hire expense was due to a decrease in the number of chartered in days partially offset by higher charter hire rates. The total chartered in days for the three months ended December 31, 2018 were 850 compared to 1,050 for the comparable quarter in the prior year.

Charter hire expenses for the years ended December 31, 2018 and 2017 were $38.0 million and $31.3 million, respectively. The increase in charter hire expenses in 2018 compared with 2017 was mainly due to an increase in charter hire rates attributable to an improvement in the drybulk market. The chartered-in operating days for 2018 were 3,294 compared to 3,353 in 2017. The Company currently charters in three vessels on a long-term basis.

Depreciation and amortization

Depreciation and amortization expense for the three months ended December 31, 2018 and 2017 was $9.7 million and $9.2 million, respectively. Total depreciation and amortization expense for the three months ended December 31, 2018 includes $8.2 million of vessel and other fixed asset depreciation and $1.5 million relating to the amortization of deferred drydocking costs. Comparable amounts for the three months ended December 31, 2017 were $7.9 million of vessel and other fixed asset depreciation and $1.3 million of amortization of deferred drydocking costs. The increase in depreciation expense is attributable to the purchase of two vessels during the year.

Depreciation and amortization expense for the years ended December 31, 2018 and 2017 was $37.7 million and $33.7 million, respectively. Total depreciation and amortization expense for the year ended December 31, 2018 includes $32.4 million million of vessel and other fixed assets depreciation and $5.4 million million relating to the amortization of deferred drydocking costs. Comparable amounts for the year ended December 31, 2017 were $29.4 million million of vessel and other fixed asset depreciation and $4.3 million million of amortization of deferred drydocking costs. The increase in depreciation expense is primarily due to an increase in the owned fleet due to the combined acquisition of 12 vessels in 2017 and 2018 offset by the sale of four vessels in 2017 and two vessels in 2018. The increase in drydock amortization expense is primarily due to additional amortization on 11 vessels, which were drydocked during the year.

General and administrative expenses

General and administrative expenses for the three months ended December 31, 2018 and 2017 were $8.5 million and $8.1 million, respectively. General and administrative expenses include stock-based compensation of $1.2 million and $1.7 million for 2018 and 2017, respectively. The increase in general and administrative expenses was mainly attributable to higher payroll related expenses due to increased head count offset by a decrease in stock-based compensation expense and legal fees.

General and administrative expenses for the years ended December 31, 2018 and 2017 were $36.2 million and $33.1 million, respectively. General and administrative expenses include stock-based compensation of $9.2 million and $8.7 million for 2018 and 2017, respectively. The increase in general and administrative expenses in 2018 was primarily due to an increase in compensation expense due to increased head count and higher stock based compensation expense in the current year compared to the prior year. The higher general and administrative expenses are reflective of the expansion of our operating platform.

Interest expense

Interest expense for the three months ended December 31, 2018 and 2017 was $6.5 million and $8.2 million, respectively. The decrease in interest expense is primarily due to a change in our debt structure with lower interest rates than the payment-in-kind interest on the Second Lien Facility, which was repaid in full in December 2017.

Interest expense for the years ended December 31, 2018 and 2017 was $25.7 million and $29.4 million, respectively. The decrease in interest expense is primarily due to a change in our debt structure, which eliminated the payment-in-kind interest on our Second Lien Facility, which was repaid in full in December 2017 offset by an increase in outstanding debt under our Ultraco Debt Facility and increase in LIBOR rates year over year on our New First Lien Facility and Ultraco Debt Facility which are exposed to interest rate fluctuations.

Liquidity and Capital Resources

The following table presents the cash flow information for the years ended December 31, 2018 and 2017 (in thousands):

For the Years Ended
December 31, 2018 December 31, 2017
Net cash provided by/(used in) operating activities (1) $ 45,471 $ (10,037 )
Net cash used in investing activities (2) (31,014 ) (155,250 )
Net cash provided by financing activities (3) 7,381 145,022
Net increase/(decrease) in cash, cash equivalents and restricted cash 21,838 (20,265 )
Cash and cash equivalents including restricted cash, beginning of year 56,326 76,591
Cash and cash equivalents including restricted cash, end of year $ 78,164 $ 56,326

(1) The increase in cash flow provided by operations resulted from an increase in the charter hire rates achieved by the Company in the current year and the elimination of payment-in-kind interest due to a change in our debt structure which was offset by higher drydocking expenditures in the current year compared to prior year.

(2) The Company purchased two Ultramax vessels and paid an advance on one Ultramax vessel for $41.4 million and $2.0 million, respectively, offset by the proceeds from the sale of two vessels for $20.5 million. Additionally, the Company paid $12.3 million for the purchase and installation of scrubbers and ballast water treatment systems on our fleet.

(3) The Company borrowed $21.4 million under the Original Ultraco Debt Facility offset by repayments of the revolver credit facility under New First Lien Facility of $5.0 million and outstanding bonds of $4.0 million. Additionally, the Company paid $2.2 million of debt issuance costs for the existing debt facilities and $2.6 million for withholding taxes due to the vesting of restricted shares.

Capital Expenditures and Drydocking

Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels, which are expected to enhance the revenue earning capabilities and safety of these vessels.

In addition to acquisitions that we may undertake in future periods, the Company’s other major capital expenditures include funding the Company’s program of regularly scheduled drydocking and vessel improvements necessary to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its drydocking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years for vessels older than 15 years and five years for vessels younger than 15 years. Funding of these requirements is anticipated to be met with cash from operations. We anticipate that the process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating days during that period.

Drydocking costs incurred are deferred and depreciated on a straight-line basis over the period through the date of the next scheduled drydocking for those vessels. Vessel improvements are deferred and depreciated on a straight-line basis over the remaining useful life of the vessel. In 2018, 11 of our vessels were drydocked and we incurred $8.3 million in drydock related costs. In 2017, three of our vessels were drydocked and we incurred $2.6 million in drydocking related costs.

The following table represents certain information about the estimated costs for anticipated vessel drydockings, ballast water treatment systems (“BWTS”), and scrubber installations in the next four quarters, along with the anticipated off-hire days:

Projected Costs(2) (in millions)
Quarter Ending Off-hire Days(1) BWTS(3) Scrubbers Drydocks
March 31, 2019 87 $ 0.9 22.2 1.6
June 30, 2019 167 $ 2.5 15.4 1.8
September 30, 2019 192 $ 3.6 15.3 3.1
December 31, 2019 246 $ 2.8 13.7 5.1
(1) Actual duration of off-hire days will vary based on the age and condition of the vessel, yard schedules and other factors.
(2) Actual costs will vary based on various factors, including where the drydockings are actually performed.

 

SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA

The following table summarizes the Company’s selected consolidated financial and other data for the periods indicated below.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended For the Years Ended
December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017
Revenues, net $ 86,692,209 $ 74,587,441 $ 310,094,258 $ 236,784,625
Voyage expenses 24,720,609 18,155,542 79,566,452 62,351,252
Vessel expenses 20,111,526 21,232,800 81,336,260 78,607,244
Charter hire expenses 10,209,535 11,312,576 38,045,778 31,283,956
Depreciation and amortization 9,708,395 9,196,289 37,717,462 33,690,686
General and administrative expenses 8,464,401 8,136,572 36,156,660 33,126,310
(Gain)/loss on sale of vessels 5,608 (34,381 ) (335,160 ) (2,134,767 )
Total operating expenses 73,220,074 67,999,398 272,487,452 236,924,681
Operating income/(loss) 13,472,135 6,588,043 37,606,806 (140,056 )
Interest expense 6,520,625 8,236,248 25,743,531 29,376,994
Interest income (247,920 ) (132,690 ) (585,168 ) (651,069 )
Other (income)/expense 713,080 100,301 (126,241 ) (37,905 )
Loss on debt extinguishment 14,968,609 14,968,609
Total other expense, net 6,985,785 23,172,468 25,032,122 43,656,629
Net income/(loss) $ 6,486,350 $ (16,584,425 ) $ 12,574,684 $ (43,796,685 )
Weighted average shares outstanding:
Basic 71,034,069 70,368,623 70,665,212 69,182,302
Diluted 72,067,130 70,368,623 71,802,173 69,182,302
Per share amounts:
Basic net income/(loss) $ 0.09 $ (0.24 ) $ 0.18 $ (0.63 )
Diluted net income/(loss) $ 0.09 $ (0.24 ) $ 0.18 $ (0.63 )

CONSOLIDATED BALANCE SHEETS

December 31, 2018 December 31, 2017
ASSETS:
Current assets:
Cash and cash equivalents $ 67,209,753 $ 56,251,044
Accounts receivable, net of a reserve of $2,073,616 and $3,501,964, respectively 19,785,582 17,246,540
Prepaid expenses 4,635,879 3,010,766
Short-term investment 4,500,000
Inventories 16,137,785 14,113,079
Vessels held for sale 8,458,444 9,316,095
Other current assets 2,246,740 785,027
Total current assets 118,474,183 105,222,551
Noncurrent assets:
Vessels and vessel improvements, at cost, net of accumulated depreciation of $124,907,998 and $99,910,416, respectively 682,944,936 690,236,419
Advance for vessel purchase 2,040,000 2,201,773
Other fixed assets, net of accumulated depreciation of $547,452 and $343,799, respectively 692,803 617,343
Restricted cash 10,953,885 74,917
Deferred financing costs – Super Senior Facility 285,342 190,000
Deferred drydock costs, net 12,186,356 9,749,751
Other assets 18,631,655 57,181
Total noncurrent assets 727,734,977 703,127,384
Total assets $ 846,209,160 $ 808,349,935
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 14,161,169 $ 7,470,844
Accrued interest 1,735,631 1,790,315
Other accrued liabilities 10,064,017 11,810,366
Fair value of derivatives 929,313 73,170
Unearned charter hire revenue 6,926,839 5,678,673
Current portion of long-term debt 29,176,230 4,000,000
Total current liabilities 62,993,199 30,823,368
Noncurrent liabilities:
Norwegian Bond Debt, net of debt discount and debt issuance costs 182,469,155 189,950,329
New First Lien Facility, net of debt discount and debt issuance costs 48,189,307 63,758,185
Original Ultraco Debt Facility, net of debt discount and debt issuance costs 70,924,885 59,975,162
Other liabilities 208,651 177,846
Fair value below contract value of time charters acquired 1,818,114 2,500,012
Total noncurrent liabilities 303,610,112 316,361,534
Total liabilities 366,603,311 347,184,902
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued as of December 31, 2018 and 2017
Common stock, $.01 par value, 700,000,000 shares authorized, 71,055,400 and 70,394,307 shares issued and outstanding as of December 31, 2018 and 2017, respectively 710,555 703,944
Additional paid-in capital 894,272,533 887,625,902
Accumulated deficit (415,377,239 ) (427,164,813 )
Total stockholders’ equity 479,605,849 461,165,033
Total liabilities and stockholders’ equity $ 846,209,160 $ 808,349,935

CONSOLIDATED CASH FLOWS

For the Years Ended
December 31, 2018 December 31, 2017
Cash flows from operating activities:
Net income/(loss) $ 12,574,684 $ (43,796,685 )
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation 32,364,359 29,354,017
Amortization of deferred drydocking costs 5,353,102 4,336,669
Amortization of debt discount and debt issuance costs 1,913,651 5,927,984
Loss on debt extinguishment 14,968,609
Amortization of fair value below contract value of time charter acquired (681,898 ) (716,783 )
Payment-in-kind interest on Second Lien Facility 10,098,401
Cash paid towards Payment-in-kind interest on Second Lien Facility (17,426,244 )
(Gain)/loss on sale of vessels, net (335,160 ) (2,134,767 )
Net unrealized loss/(gain) on fair value of derivatives 315,748 (55,675 )
Fees paid on termination of time charter contract (1,500,000 )
Stock-based compensation expense 9,207,480 8,738,615
Drydocking expenditures (8,323,191 ) (2,579,111 )
Changes in operating assets and liabilities:
Accounts receivable (3,465,025 ) (12,156,832 )
Other current and non-current assets (207,234 ) (331,707 )
Prepaid expenses (1,625,113 ) 83,196
Inventories (2,024,706 ) (3,236,366 )
Accounts payable 993,557 335,688
Accrued interest (54,684 ) 1,761,443
Other accrued and non-current liabilities (1,125,638 ) (1,340,366 )
Unearned revenue 590,531 (367,359 )
Net cash provided by/(used in) operating activities 45,470,463 (10,037,273 )
Cash flows from investing activities:
Purchase of vessels and vessel improvements (41,404,328 ) (174,400,746 )
Advance for vessel purchase (2,040,000 ) (2,201,773 )
Advance paid for scrubbers, ballast water treatment systems and other assets (12,342,317 )
Proceeds/(purchase) of short-term investment 4,500,000 (4,500,000 )
Proceeds from sale of vessels 20,545,202 26,042,000
Purchase of other fixed assets (272,067 ) (189,120 )
Net cash used in investing activities (31,013,510 ) (155,249,639 )
Cash flows from financing activities:
Repayment of First Lien Facility (184,099,000 )
Repayment of Revolver Loan Facility under First Lien Facility (25,000,000 )
Repayment of Second Lien Facility (60,000,000 )
Proceeds from common stock placement, net of issuance costs 96,030,003
Proceeds from the Norwegian Bond Debt, net of discount 198,092,000
Repayment of outstanding bonds under Norwegian Bond Debt (4,000,000 )
Proceeds from the New First Lien Facility 65,000,000
Repayment of revolver under New First Lien Facility (5,000,000 )
Proceeds from Original Ultraco Debt Facility 21,400,000 61,200,000
Financing costs paid to lenders (2,025,514 )
Other financing costs (2,465,037 ) (3,886,104 )
Cash received from exercise of stock options 4,865
Cash used to settle net share equity awards (2,559,104 ) (289,539 )
Net cash provided by financing activities 7,380,724 145,021,846
Net increase/(decrease) in cash, cash equivalents and restricted cash 21,837,677 (20,265,066 )
Cash, cash equivalents and restricted cash at beginning of period 56,325,961 76,591,027
Cash, cash equivalents and restricted cash at end of period $ 78,163,638 $ 56,325,961

Reconciliation of Net Income/(Net Loss) to EBITDA and Adjusted EBITDA

In addition to the Company’s financial results reported in accordance with accounting principles generally accepted in the United States of America (“GAAP”) included in this press release, the Company has provided certain financial measures that are not calculated according to GAAP, including EBITDA and Adjusted EBITDA. We define EBITDA as net income /(loss) under GAAP attributable to the Company adjusted for interest, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure or historical costs basis. Our Adjusted EBITDA should not be considered an alternative to net income/(loss), operating income/(loss), cash flows provided by /(used in) operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner.  Adjusted EBITDA represents EBITDA adjusted to exclude the items which represent certain non-cash, one-time and other items such as vessel impairment, gain / loss on sale of vessels, restructuring expenses and stock-based compensation expenses that the Company believes are not indicative of the ongoing performance of its core operations. The following table presents a reconciliation of our net income/(loss) to EBITDA and Adjusted EBITDA.

Three Months Ended For the Years Ended
December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017
Net income/(loss) $ 6,486,350 $ (16,584,425 ) $ 12,574,684 $ (43,796,685 )
Adjustments to reconcile net loss to EBITDA:
Interest expense 6,520,625 8,236,248 25,743,531 29,376,994
Interest Income (247,920 ) (132,690 ) (585,168 ) (651,069 )
Income taxes
EBIT 12,759,055 (8,480,867 ) 37,733,047 (15,070,760 )
Depreciation and amortization 9,708,395 9,196,289 37,717,462 33,690,686
EBITDA 22,467,450 715,422 75,450,509 18,619,926
Non-cash, one-time and other adjustments to EBITDA(1): 1,022,047 16,503,408 8,190,420 20,855,674
Adjusted EBITDA $ 23,489,497 $ 17,218,830 $ 83,640,929 $ 39,475,600

(1) One-time and other adjustments to EBITDA includes; loss on debt extinguishment, vessel impairment, restructuring charges, stock-based compensation, (gain)/loss on sale of vessels and amortization of fair value below contract value of time charter acquired.

Reconciliation of net revenues to TCE

Time charter equivalent (“TCE”) is a non-GAAP financial measure that is commonly used in the shipping industry primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts. The Company defines TCE as shipping revenues less voyage expenses and charter hire expenses, adjusted for the impact of one legacy time charter and gains/(losses)on FFAs and bunker swaps, divided by the number of owned available days. TCE provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. The Company’s calculation of TCE may not be comparable to that reported by other companies. Owned available days is the number of our ownership days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Three Months Ended For the Years Ended
December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017
Revenues, net $ 86,692,209 $ 74,587,441 $ 310,094,258 $ 236,784,625
Less:
Voyage expenses (24,720,609 ) (18,155,542 ) (79,566,452 ) (62,351,252 )
Charter hire expenses (10,209,535 ) (11,312,576 ) (38,045,778 ) (31,283,956 )
Reversal of one legacy time charter (225,746 ) 426,037 (410,116 ) 1,036,738
Realized gain/(loss) on FFAs and bunker swaps (210,573 ) (348,908 ) 535,234 (17,770 )
TCE revenue $ 51,325,746 $ 45,196,452 $ 192,607,146 $ 144,168,385
Owned available days 4,227 4,324 16,790 15,891
TCE $ 12,142 $ 10,452 $ 11,471 $ 9,072

Glossary of Terms:

Ownership days: We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

Chartered-in under operating lease days: We define chartered-in under operating lease days as the aggregate number of days in a period during which we charter-in vessels. Periodically, the Company charters in vessels on a single trip basis.

Available days: We define available days, which the Company has recently updated and reflected in the table above in this press release to better reflect the way management views the business, as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Operating days: We define operating days as the number of available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

Fleet utilization: We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at high utilization rates.

Definitions of capitalized terms related to our Indebtedness

Original Ultraco Debt Facility: Original Ultraco Debt Facility refers to the credit facility for $82.6 million entered into by and among Eagle Bulk Ultraco LLC, a wholly-owned subsidiary of the Company (“Ultraco”), as borrower, certain wholly-owned vessel-owning subsidiaries of Ultraco, as guarantors, the lenders thereunder, the swap banks party thereto, ABN AMRO Capital USA LLC (“ ABN AMRO”), as facility agent and security trustee for the Ultraco Lenders, ABN AMRO, DVB Bank SE and Skandinaviska Enskilda Banken AB (publ), as mandated lead arrangers, and ABN AMRO, as arranger and bookrunner on June 28, 2017. The proceeds were used to finance the acquisition of nine Ultramax vessels during 2017 and one Ultramax vessel in the first quarter of 2018. The Original Ultraco Debt Facility was repaid in full in the first quarter of 2019 with proceeds from that certain senior secured credit facility (the “New Ultraco Debt Facility”), dated as of January 25, 2019, by and among Ultraco, the Company and certain of its indirectly vessel-owning subsidiaries, as guarantors, the lenders party thereto, the swap banks party thereto, ABN AMRO, Credit Agricole Corporate and Investment Bank, Skandinaviska Enskilda Banken AB (PUBL) and DNB Markets Inc., as mandated lead arrangers and bookrunners, and ABNAMRO, as arranger, security trustee and facility agent.

Norwegian Bond Debt: Norwegian Bond Debt refers to the Senior Secured Bonds issued by Eagle Bulk Shipco LLC, a wholly-owned subsidiary of the Company (“Shipco”), as borrower, certain wholly-owned vessel-owning subsidiaries of Shipco, as guarantors (“Shipco Vessels”), on November 28, 2017 for $200.0 million, pursuant to those certain Bond Terms, dated as of November 22, 2017, by and between Shipco, as issuer, and Nordic Trustee AS, a company existing under the laws of Norway (the “Bond Trustee”). The bonds are secured by 27 vessels. The proceeds were used to repay the outstanding debt under the First Lien Facility and the Second Lien Facility.

New First Lien Facility: New First Lien Facility refers to the credit facility for $65.0 million (term loan and revolver) entered into by and among Eagle Shipping LLC, a wholly-owned subsidiary of the Company (“Eagle Shipping”), as borrower, certain wholly-owned vessel-owning subsidiaries of Eagle Shipping, as guarantors, the lenders thereunder, the swap banks party thereto, ABN AMRO Capital USA LLC, as facility agent and security trustee for the Lenders, ABN AMRO Capital USA LLC, Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB (publ), as mandated lead arrangers, and ABN AMRO Capital USA LLC, as arranger and bookrunner on December 8, 2017. The proceeds were used to repay the outstanding debt under the First Lien Facility and the Second Lien Facility. The Company repaid the $5.0 million revolver loan in the first quarter of 2018. The outstanding debt under the New First Lien Facility was repaid in full in the first quarter of 2019 with proceeds under the New Ultraco Debt Facility.

First Lien Facility: First Lien Facility refers to an Amended and Restated First Lien Loan Agreement, dated as of March 30, 2016, made by, among others, Eagle Shipping, as borrower, the banks and financial institutions party thereto and ABN AMRO Capital USA LLC, as security trustee and facility agent. The debt was fully discharged on December 8, 2017.

Second Lien Facility: Second Lien Facility refers to Second Lien Credit Agreement, dated as of March 30, 2016, made by, among others, Eagle Shipping LLC, as borrower, the individuals and financial institutions party thereto and Wilmington Savings Fund Society, FSB as second lien agent for $60.0 million. The debt was fully discharged on December 8, 2017.

Super Senior Facility: Super Senior Facility refers to the $15.0 million revolver facility entered into by and among, Shipco, as borrower, and ABN AMRO Capital USA LLC, as original lender, mandated lead arranger and agent. The facility is currently undrawn and the $15.0 million is fully available for acquisition of vessels or working capital purposes.

 

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