Eagle Bulk returned to profit during second quarter

Vogel-Eagle-Bulk

Eagle Bulk, one of the world’s largest owner-operators in the Supramax / Ultramax segment, reported financial results for the three and six months ended June 30, 2018.

Highlights for the Quarter:

  • Generated net revenues of $74.9 million, representing an increase of $21.3 million or 40% compared to the same period in 2017.
    • TCE Revenue (1) for the quarter equated to $47.6 million, an increase of 41% year-on-year.
    • Achieved a TCE (1) of $11,453 for the quarter, an increase of 25% year-on-year.
  • Realized a net income of $3.5 million or $0.05 basic and diluted earnings per share, compared to a net loss of $5.9 million or $0.08 per share for the comparable quarter in 2017.
  • Generated operating cash flows of $24.8 million for the six months ended June 30, 2018.
  • Adjusted EBITDA(2) of $21.1 million, representing an increase of $11.8 million or 127% compared to the same period in 2017.
  • Signed a memorandum of agreement to acquire a 2014-built SDARI-64 Ultramax bulk carrier for $21.3 million. The vessel, which will be renamed M/V Hamburg Eagle, is scheduled to be delivered to the Company during the fourth quarter of 2018.
  • Looking ahead into the third quarter of 2018, attained a TCE of $10,808 with approximately 68% of the days fixed for the period thus far.

Gary Vogel, Eagle Bulk’s CEO, commented, “We are pleased that our active owner-operator strategy continues to drive improving results across all key performance metrics, including a $1,026 outperformance of the benchmark Baltic Supramax Index during the second quarter.  The results are a reflection not only of an improvement in the underlying drybulk market, but also of the proactive measures we have taken to enhance the balance sheet and optimize the fleet make-up.    The value of our differentiated business model and our team’s ability to execute has now been validated over six consecutive quarters.”

Fleet Operating Data

Three Months

Ended

Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Ownership Days 4,294 3,878 8,606 7,564
Chartered in Days 867 744 1,811 1,258
Available Days 5,020 4,515 10,182 8,649
Operating Days 4,992 4,498 10,105 8,603
Fleet Utilization (%) 99.4 % 99.6 % 99.2 % 99.5 %

Results of Operations for the three and six months ended June 30, 2018 and 2017

For the three months ended June 30, 2018, the Company reported net income of $3.5 million, or basic and diluted earnings of $0.05 per share. In the comparable quarter of 2017, the Company reported a net loss of $5.9 million, or basic and diluted loss of $0.08 per share.

For the six months ended June 30, 2018, the Company reported net income of $3.5 million, or basic and diluted earnings of $0.05 per share. In the comparable period of 2017, the Company reported a net loss of $17.0 million, or basic and diluted loss of $0.25 per share.

We adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09” or “ASC 606”) as of January 1, 2018 utilizing the modified retrospective method of transition. The impact of adoption of ASC 606 was not material to our reported financial position or the results of operations for the three and six months ended June 30, 2018.

Net time and voyage charter revenues

Net time and voyage charter revenues for the three months ended June 30, 2018 were $74.9 million compared with $53.6 million recorded in the comparable quarter in 2017. The increase in revenue was primarily attributable to the improving dry bulk market resulting in higher charter rates as well as an increase in available days due to an increase in our owned fleet and chartered in vessels.

Net time and voyage charter revenues for the six months ended June 30, 2018 and 2017 were $154.3 million and $99.5 million, respectively. The increase in revenue was primarily due to an increase in the owned fleet with the purchase of 11 Ultramax vessels partially offset by the sale of five vessels since second quarter of 2017, along with an increase in chartered in vessels as well as higher charter rates due to an improving dry bulk market.

Voyage expenses

Voyage expenses for the three months ended June 30, 2018 were $17.2 million compared to $13.4 million in the comparable quarter in 2017. The increase was mainly attributable to an increase in the fleet size, an increase in the number of voyage charters performed 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 six months ended June 30, 2018 and 2017 were $39.7 million and $26.7 million, respectively. The increase was primarily due to an increase in the fleet size as well as the number of voyage charters performed in the current period compared to the comparable period in the prior year. The increase in bunker prices year over year contributed to the increase in voyage expenses as well.

Vessel expenses

Vessel expenses for the three months ended June 30, 2018 were $20.6 million compared to $19.3 million in the comparable quarter in 2017. The increase in vessel expenses is attributable to the increase in the owned fleet after the acquisition of 11 Ultramax vessels during 2017 and 2018 which was partially offset by vessel sales in 2017 and 2018. The Company sold the vessel Redwing in the first quarter of 2017, the Sparrow in the second quarter of 2017, the Woodstar in the third quarter of 2017 and the Wren in the fourth quarter of 2017. The vessel Avocet was sold in the second quarter of 2018.  The ownership days for the three months ended June 30, 2018 and June 30, 2017 were 4,294 and 3,878, respectively.

Average daily vessel operating expenses for our fleet for the three months ended June 30, 2018 and June 30, 2017 were $4,792 and $4,979, respectively. The decrease in daily average vessel operating expenses is primarily due to savings in repairs expense incurred on vessels sold.

Vessel expenses for the six months ended June 30, 2018 and 2017 were $41.7 million and $37.3 million, respectively. The increase in vessel expenses is primarily attributable to an increase in the owned fleet after the acquisition of 11 Ultramax vessels during 2017 and 2018 which was partially offset by vessel sales.  The ownership days for the six months ended June 30, 2018 and 2017 were 8,606 and 7,564, respectively.

Average daily vessel operating expenses for our fleet for the six months ended June 30, 2018 and 2017 were $4,840 and $4,927, respectively.

Charter hire expenses

Charter hire expenses for the three months ended June 30, 2018 were $10.1 million compared to $6.4 million in the comparable quarter in 2017. The increase in charter hire expenses was principally due to an increase in the number of chartered in vessels on a short-term basis as we expand on our owner-operator platform as well as an increase in the average charter hire expense per day. The total chartered in days for the three months ended June 30, 2018 were 867 compared to 744 for the comparable quarter in the prior year.

Charter hire expenses for the six months ended June 30, 2018 and 2017 were $20.4 million and $10.3 million, respectively. The increase in charter hire expenses was primarily due to an increase in the number of chartered in vessels as well as an increase in the average charter hire expense per day due to improvement in the drybulk market. The total chartered in days for the six months ended June 30, 2018 and 2017 were 1,811 and 1,258, respectively.

Depreciation and amortization

Depreciation and amortization expense for the three months ended June 30, 2018 and 2017 was $9.3 million and $8.0 million, respectively. Total depreciation and amortization expense for the three months ended June 30, 2018 includes $8.0 million of vessel and other fixed asset depreciation and $1.3 million relating to the amortization of deferred drydocking costs. Comparable amounts for the three months ended June 30, 2017 were $7.0 million of vessel and other fixed asset depreciation and $1.0 million of amortization of deferred drydocking costs. The increase in depreciation was primarily due to the purchase of 10 Ultramax vessels during 2017 and one in January 2018 offset by the sale of two vessels during the second half of 2017, one vessel in the second quarter of 2018 and one vessel classified as held for sale since the first quarter of 2018. The amortization of drydock expense increased in the current quarter compared to the comparable quarter in the prior year primarily due to the completion of three drydockings in 2017 and six in the first half of 2018.

Depreciation and amortization expense for the six months ended June 30, 2018 and 2017 was $18.5 million and $15.5 million, respectively. Total depreciation and amortization expense for the six months ended June 30, 2018 includes $16.0 million of vessel and other fixed asset depreciation and $2.5 million relating to the amortization of deferred drydocking costs. Comparable amounts for the six months ended June 30, 2017 were $13.5 million of vessel and other fixed asset depreciation and $2.0 million of amortization of deferred drydocking costs. The increase in depreciation was primarily due to the purchase of 10 Ultramax vessels during 2017 and one in January 2018 offset by the sale of two vessels in the second half of 2017 and one vessel in the second quarter of 2018 and one vessel classified as held for sale since the first quarter of 2018. The amortization of drydock expense increased in the current period compared to the comparable period in the prior year primarily due to the completion of three drydockings in 2017 and six in the first half of the 2018.

General and administrative expenses

General and administrative expenses for the three months ended June 30, 2018 and 2017 were $8.9 million and $8.6 million, respectively. General and administrative expenses include stock-based compensation of $2.4 million and $2.5 million for 2018 and 2017, respectively. The increase in general and administrative expenses was mainly attributable to increases in compensation expense relating to incremental staff hired in connection with the increased fleet size under our owner-operator business model.

General and administrative expenses for the six months ended June 30, 2018 and 2017 were $18.8 million and $16.4 million, respectively. General and administrative expenses include stock-based compensation of $5.9 million and $4.6 million for 2018 and 2017, respectively. The increase is primarily attributable to higher stock-based compensation expense and compensation expense offset by savings in advisors’ fees.

Interest expense

Interest expense for the three months ended June 30, 2018 and 2017 was $6.4 million and $6.9 million, respectively. The decrease in interest expense is mainly due to the decrease in amortization of debt discount and debt issuance costs by $1.0 million resulting from the debt refinancing in December 2017 where the high interest bearing Second Lien Facility was repaid in full, offset by an increase in the interest expense of $0.9 million on the Ultraco Debt Facility, which was used for the acquisition of 10 Ultramax vessels.

Interest expense for the six months ended June 30, 2018  and 2017 was $12.6 million and $13.3 million, respectively. The decrease in interest expense is mainly due to the decrease in amortization of debt discount and debt issuance costs by $1.9 million resulting from the debt refinancing in December 2017 where the high interest bearing Second Lien Facility was repaid in full offset by increase in the interest expense of $1.7 million on the Ultraco Debt Facility and $0.4 million due to increase in the LIBOR rate year over year.

Liquidity and Capital Resources

Net cash provided by operating activities for the six months ended June 30, 2018 was $24.8 million, compared with net cash used in operating activities of $5.3 million in the comparable six month period in 2017. The cash flows from operating activities improved over the prior year primarily due to an increase in charter hire rates driven by improvement in the dry bulk market and positive working capital change as compared to the corresponding period in the prior year, partially offset by higher drydocking expenditures of $4.6 million in 2018 compared to $0.3 million in the comparable period in the prior year.

Net cash used in investing activities for the six months ended June 30, 2018 was $6.1 million, compared to $131.8 million in the comparable six month period in the prior year. The Company purchased one Ultramax vessel in the first quarter of 2018 for $21.3 million out of which the Company paid a deposit of $2.2 million as of December 31, 2017. The Company redeemed a short-term certificate of deposit amounting to $4.5 million during the first quarter of 2018. The Company sold the vessel Avocet in the second quarter of 2018 for net proceeds of $9.7 million. During the six months ended June 30, 2017, the Company purchased seven Ultramax vessels for $120.9 million and paid $20.9 million as an advance towards purchase of the additional three Ultramax vessels which were delivered in the third quarter of 2017.

Net cash provided by financing activities for the six months ended June 30, 2018 was $2.0 million compared with $129.2 million in the comparable six month period in 2017. The Company drew down $8.6 million under the Ultraco Debt Facility in connection with the purchase of one Ultramax vessel, offset by repayment of $5.0 million for the Revolving Loan under the New First Lien Facility. The Company paid $1.4 million of debt issuance costs on the three existing debt facilities and $0.3 million towards shares withheld for taxes due to vesting of restricted shares.

In the six months ended June 30, 2017, the Company received net proceeds of $96.0 million in a common stock private placement that closed on January 20, 2017. The Company received $40.0 million from the Ultraco Debt Facility and paid $1.5 million of other financing costs. Additionally, the Company repaid $5.3 million of its Term Loan under the First Lien Facility from the proceeds of the sale of the vessels Redwing and Sparrow.

As of June 30, 2018, our cash and cash equivalents balance was $76.9 million compared to a cash and cash equivalents balance of $56.3 million as of December 31, 2017.

As of June 30, 2018, the total availability in the revolving credit facilities under the Super Senior Facility and the New First Lien Facility was $20.0 million.

As of June 30, 2018, the Company’s debt consisted of $200.0 million in outstanding bonds, $60.0 million in term loan under the New First Lien Facility and $69.8 million under the Ultraco Debt Facility.

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 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 this 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 amortized to expense on a straight-line basis over the period through the date of the next scheduled drydocking for those vessels. In the six months ended June 30, 2018, six of our vessels completed drydock and two of our vessels are still in drydock as of June 30, 2018 and we incurred $4.6 million in drydocking related costs. In the six months ended June 30, 2017, one vessel was drydocked.

The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:

Quarter Ending Off-hire Days(1) Projected Costs(2)
September 30, 2018 57 $3.2 million
December 31, 2018
March 31, 2019 84 $2.8 million
June 30, 2019 25 $1.0 million

(1) Actual duration of drydocking will vary based on the 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 condensed consolidated financial and other data for the periods indicated below.

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Revenues, net $ 74,938,700 $ 53,631,224 $ 154,309,309 $ 99,486,281
Voyage expenses 17,204,964 13,379,664 39,719,556 26,733,011
Vessel expenses 20,577,116 19,308,802 41,655,773 37,264,321
Charter hire expenses 10,108,258 6,445,580 20,376,322 10,318,912
Depreciation and amortization 9,272,460 8,020,597 18,548,875 15,513,405
General and administrative expenses 8,895,505 8,589,979 18,809,469 16,368,800
Gain on sale of vessels (105,073 ) (1,805,785 ) (105,073 ) (1,897,899 )
Total operating expenses 65,953,230 53,938,837 139,004,922 104,300,550
Operating income/(loss) 8,985,470 (307,613 ) 15,304,387 (4,814,269 )
Interest expense 6,387,011 6,858,716 12,648,080 13,303,747
Interest income (111,952 ) (185,641 ) (207,228 ) (375,439 )
Other income (740,356 ) (1,092,222 ) (639,977 ) (785,663 )
Total other expense, net 5,534,703 5,580,853 11,800,875 12,142,645
Net income/(loss) $ 3,450,767 $ (5,888,466 ) $ 3,503,512 $ (16,956,914 )
Weighted average shares outstanding:
Basic 70,515,320 70,329,050 70,484,240 67,996,330
Diluted 72,086,980 70,329,050 71,560,775 67,996,330
Per share amounts:
Basic income/(loss) $ 0.05 $ (0.08 ) $ 0.05 $ (0.25 )
Diluted income/(loss) $ 0.05 $ (0.08 ) $ 0.05 $ (0.25 )

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2018 December 31, 2017
ASSETS:
Current assets:
Cash and cash equivalents $ 76,881,117 $ 56,251,044
Accounts receivable 13,072,691 17,246,540
Prepaid expenses 2,797,648 3,010,766
Short-term investment 4,500,000
Inventories 11,911,398 14,113,079
Vessel held for sale 10,354,855 9,316,095
Other current assets 2,540,427 785,027
Total current assets 117,558,136 105,222,551
Noncurrent assets:
Vessels and vessel improvements, at cost, net of accumulated depreciation of $113,539,571 and $99,910,416, respectively 686,424,065 690,236,419
Advance for vessel purchase 2,201,773
Other fixed assets, net of accumulated amortization of $432,225 and $343,799, respectively 580,020 617,343
Restricted cash 74,917 74,917
Deferred drydock costs, net 11,584,365 9,749,751
Deferred financing costs – Super Senior Facility 285,342 190,000
Other assets 55,815 57,181
Total noncurrent assets 699,004,524 703,127,384
Total assets $ 816,562,660 $ 808,349,935
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 8,123,778 $ 7,470,844
Accrued interest 1,733,278 1,790,315
Other accrued liabilities 7,602,898 11,810,366
Fair value of derivatives 461,993 73,170
Unearned charter hire revenue 4,901,453 5,678,673
Current portion of long-term debt 19,812,713 4,000,000
Total current liabilities 42,636,113 30,823,368
Noncurrent liabilities:
Norwegian Bond Debt, net of debt discount and debt issuance costs 186,381,482 189,950,329
New First Lien Facility, net of debt discount and debt issuance costs 52,353,586 63,758,185
Ultraco Debt Facility, net of debt discount and debt issuance costs 63,263,797 59,975,162
Other liabilities 216,924 177,846
Fair value below contract value of time charters acquired 2,159,062 2,500,012
Total noncurrent liabilities 304,374,851 316,361,534
Total liabilities 347,010,964 347,184,902
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none issued as of June 30, 2018 and December 31, 2017, respectively
Common stock, $0.01 par value, 700,000,000 shares authorized, 70,516,466 and 70,394,307 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively 705,165 703,944
Additional paid-in capital 893,294,942 887,625,902
Accumulated deficit (424,448,411 ) (427,164,813 )
Total stockholders’ equity 469,551,696 461,165,033
Total liabilities and stockholders’ equity $ 816,562,660 $ 808,349,935

CONDENSED CONSOLIDATED CASH FLOWS

Six Months Ended
June 30, 2018 June 30, 2017
Cash flows from operating activities:
Net income/(loss) $ 3,503,512 $ (16,956,914 )
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation 16,049,334 13,538,266
Amortization of deferred drydocking costs 2,499,541 1,975,139
Amortization of debt issuance costs 970,352 2,901,948
Amortization of fair value below contract value of time charter acquired (340,950 ) (375,833 )
Payment-in-kind interest on debt 4,977,219
Net unrealized gain on fair value of derivative instruments (234,988 ) (736,609 )
Stock-based compensation expense 5,920,510 4,648,751
Drydocking expenditures (4,632,000 ) (341,350 )
Gain on sale of vessels (105,073 ) (1,897,899 )
Fees paid on time charter termination (1,500,000 )
Changes in operating assets and liabilities:
Accounts receivable 4,173,849 (6,172,147 )
Other current and non-current assets (333,715 ) (1,125,809 )
Prepaid expenses 213,117 28,848
Inventories 2,201,681 (1,693,827 )
Accounts payable 652,934 705,907
Accrued interest (57,037 ) (15,217 )
Other accrued and other non-current liabilities (3,332,732 ) (3,593,657 )
Unearned revenue (2,360,838 ) 369,955
Net cash provided by/(used in) operating activities 24,787,497 (5,263,229 )
Cash flows from investing activities:
Purchase of vessels and vessel improvements (20,301,806 ) (121,331,815 )
Advance paid for purchase of vessel (20,863,466 )
Proceeds from redemption of Short-term investment 4,500,000
Proceeds from sale of vessels 9,719,013 10,586,500
Purchase of other fixed assets (50,933 ) (204,348 )
Net cash used in investing activities (6,133,726 ) (131,813,129 )
Cash flows from financing activities:
Repayment of term loan under First Lien Facility (5,293,250 )
Repayment of revolver loan under New First Lien Facility (5,000,000 )
Proceeds from Ultraco Debt Facility 8,600,000
Proceeds from the common stock private placement, net of issuance costs 96,030,003
Cash used to settle net share equity awards (255,114 )
Other financing costs (1,373,449 ) (575,000 )
Net cash provided by financing activities 1,976,302 129,243,753
Net increase/(decrease) in cash and cash equivalents and restricted cash 20,630,073 (7,832,605 )
Cash and cash equivalents and restricted cash at beginning of period 56,325,961 76,591,027
 Cash and cash equivalents and restricted cash at end of period $ 76,956,034 $ 68,758,422
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for interest $ 11,734,765 $ 5,338,742

ReconciliationofNet income/(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 Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Net income/(loss) $ 3,450,767 $ (5,888,466 ) $ 3,503,512 $ (16,956,914 )
Adjustments to reconcile net income/(loss) to EBITDA:
Interest expense 6,387,011 6,858,716 12,648,080 13,303,747
Interest Income (111,952 ) (185,641 ) (207,228 ) (375,439 )
Income taxes
EBIT 9,725,826 784,609 15,944,364 (4,028,606 )
Depreciation and amortization 9,272,460 8,020,597 18,548,875 15,513,405
EBITDA 18,998,286 8,805,206 34,493,239 11,484,799
Non-cash, one-time and other adjustments to EBITDA(1): 2,134,051 501,511 5,474,487 2,375,019
Adjusted EBITDA $ 21,132,337 $ 9,306,717 $ 39,967,726 $ 13,859,818

(1) One-time and other adjustments to EBITDA includes 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 realized gains 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. The Company calculates relative performance by comparing TCE against the Baltic Supramax Index (“BSI”) adjusted for commissions and fleet makeup. 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 Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Revenues, net $ 74,938,700 $ 53,631,224 $ 154,309,309 $ 99,486,281
Less:
Voyage expenses (17,204,964 ) (13,379,664 ) (39,719,556 ) (26,733,011 )
Charter hire expenses (10,108,258 ) (6,445,580 ) (20,376,322 ) (10,318,912 )
Reversal of one legacy time charter (404,343 ) 584,442 (490,830 ) 281,998
Realized gain on FFAs and bunker swaps 344,522 82,893 461,504 82,893
TCE revenue 47,565,657 34,473,315 94,184,105 62,799,249
Owned available days 4,153 3,771 8,371 7,391
TCE $ 11,453 $ 9,142 $ 11,251 $ 8,497

 

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