Company Performance - Ardmore Shipping (ASC) closed at $17.69, with a slight increase of +0.11% from the previous trading session, outperforming the S&P 500 which gained 0.03% [1] - Over the past month, Ardmore Shipping's shares have decreased by 9.25%, underperforming the Transportation sector's gain of 3.7% and the S&P 500's gain of 1.54% [1] - The upcoming earnings report is anticipated to show an EPS of $0.80, reflecting a significant increase of 63.27% year-over-year, with revenue expected to reach $71.61 million, a 27.18% increase from the same quarter last year [1] Earnings Estimates - For the full year, Zacks Consensus Estimates project earnings of $3.47 per share and revenue of $297.37 million, indicating increases of +28.04% and +12.61% respectively from the previous year [2] - Recent changes in analyst estimates for Ardmore Shipping suggest a positive outlook for the company's business, as these revisions are correlated with stock price performance [2] Valuation and Ranking - Ardmore Shipping currently has a Zacks Rank of 3 (Hold), with no changes in the EPS estimate over the past month [3] - The company is trading at a Forward P/E ratio of 5.1, which is lower than the industry average Forward P/E of 6.92, indicating a valuation discount [3] - The Transportation - Shipping industry ranks in the bottom 44% of all industries, with a current Zacks Industry Rank of 142 [3]

Company Performance - Ardmore Shipping (ASC) closed at $16.98, reflecting a +0.89% change from the previous session, which is lower than the S&P 500's daily gain of 1.07% [1] - Over the past month, Ardmore Shipping's shares have depreciated by 13.52%, underperforming the Transportation sector's gain of 2.76% and the S&P 500's gain of 2.92% [1] - The upcoming earnings report is projected to show earnings of $0.80 per share, representing a year-over-year growth of 63.27%, with revenue expected to be $71.61 million, indicating a 27.18% increase compared to the same quarter last year [1] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $3.47 per share and revenue of $297.37 million, signifying shifts of +28.04% and +12.61% respectively from the last year [2] - Recent changes to analyst estimates reflect shifting dynamics in short-term business patterns, with upward revisions indicating analysts' positivity towards the company's operations [2] Valuation and Ranking - Ardmore Shipping currently has a Zacks Rank of 3 (Hold), with the consensus EPS projection remaining stagnant over the past 30 days [3] - The company is trading at a Forward P/E ratio of 4.86, which is a discount compared to the industry average Forward P/E of 6.6 [3] - The Transportation - Shipping industry has a Zacks Industry Rank of 92, placing it in the top 37% of all 250+ industries, indicating strong performance potential [3]

Group 1: Core Investment Thesis - Ardmore Shipping Corporation (ASC) operates in a fundamentally advantaged shipping market for refined petroleum products, leading to large operating margins [1] - High levels of cash generation enable ASC to pay a variable dividend and reinvest in the business to reduce breakeven costs [1] - Structural changes in the global refining industry suggest that current operating margins are sustainable for the long term, making ASC an attractive investment option [1] Group 2: Company Overview - ASC is a small-cap maritime company operating 26 tanker vessels, primarily clean petroleum product vessels built between 2013 and 2017 [2] - The company operates mainly in the spot market, which can lead to significant revenue and profitability fluctuations, but the current market is tight, resulting in excellent margins [2] Group 3: Market Dynamics - The global refining industry has experienced structural changes since the COVID pandemic, with significant refinery closures in developed nations and new refineries emerging in China, the Middle East, and Africa [3] - Geopolitical events have disrupted trade routes, necessitating longer shipping journeys and enhancing the market for shipping services [3][4] Group 4: Financial Performance - ASC's operating margin currently exceeds $20,000 per vessel, making it attractive for investors [5] - The company has reduced its cash breakeven rate by 17% since 2022, with a long-term goal of achieving a breakeven level below $11,500 per day [8][11] - ASC's balance sheet is strong, with a net positive cash position allowing for aggressive debt retirement [7] Group 5: Future Outlook - The company plans to outfit vessels with emission-reducing equipment, which may provide a cost advantage and secure higher rates in the future [13] - Despite potential oversupply concerns in the product tanker fleet, the order book for MR vessels remains healthy, with only 11% of total capacity contracted for construction [4] Group 6: Valuation and Competitive Position - ASC trades in line with larger peers but has a superior debt position, allowing for reinvestment or distribution of cash generated by the business [14] - The recent announcement of a $500 million mixed securities shelf introduces uncertainties that should be monitored [16]

Core Viewpoint - Brokerage recommendations, particularly for Ardmore Shipping (ASC), indicate a strong buy with an average brokerage recommendation (ABR) of 1.00, but reliance solely on these recommendations may not be advisable due to potential biases from brokerage firms [1][2]. Brokerage Recommendation Trends for ASC - Ardmore Shipping has an ABR of 1.00, with all six recommendations classified as Strong Buy, representing 100% of the recommendations [1]. - Studies suggest that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [2]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [2][3]. Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock price performance compared to ABR [3][5]. - Zacks Rank is displayed in whole numbers (1 to 5) and is distinct from ABR, which is calculated from brokerage recommendations and typically shown in decimals [4]. - The Zacks Rank is timely in reflecting changes in earnings estimates, while ABR may not always be up-to-date [6]. Investment Considerations for ASC - The Zacks Consensus Estimate for Ardmore Shipping remains unchanged at $3.47, indicating steady analyst views on the company's earnings prospects [7]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Ardmore Shipping, suggesting caution despite the strong buy ABR [7].

Company Overview - Ardmore Shipping Corporation is a publicly traded company specializing in transporting petroleum products and chemicals, operating a fleet of modern, eco-design vessels [2] - The fleet consists of 26 vessels, primarily medium-range (MR) tankers, with an average age of 9.8 years [2] - The company operates globally, utilizing a combination of time charters and spot market operations to optimize revenue [2] Financial Performance - For Q2-2024, Ardmore Shipping reported revenues of $121 million, a 33% increase year-over-year, driven by higher spot rates and the addition of two time-chartered vessels [5] - Net income for Q2-2024 was $63 million, reflecting a 156% year-over-year increase due to revenue growth and reduced operating expenses [5] - The stock price is currently $19.3, with a market capitalization of $808 million, having risen approximately 37% since the start of 2024 [3][4] Market Conditions - The oil product and chemical tanker markets are experiencing high demand and low availability, leading to historically high tanker rates [7][8] - Factors contributing to increased demand include shifts in trade routes due to geopolitical conflicts and ongoing trends in petrochemical expansion [7] - Limited tanker availability is a result of fewer orders in recent years and full shipyard capacities, maintaining high day rates for tankers [8] Strengths - Ardmore Shipping has a low cash breakeven rate of $12,650 per day, enhancing profitability and resilience [9] - The company maintains a cash-positive position with strong liquidity, having access to approximately $207 million under revolving credit facilities [9] - The relatively young fleet minimizes capital expenditure needs for renovations [9] Future Outlook - The company plans to install scrubbers on additional vessels to comply with ESG regulations, indicating a commitment to sustainability [10] - Overall, Ardmore Shipping is positioned favorably in the market with strong fundamentals, making it a compelling investment opportunity [11]

Core Insights - ZyVersa Therapeutics, Inc. is developing a novel drug, Inflammasome ASC Inhibitor IC 100, targeting extracellular ASC to mitigate chronic inflammatory conditions associated with amyloid A amyloidosis [2][3][5] - Recent research published in EMBO Molecular Medicine highlights the role of extracellular ASC in the aggregation and deposition of amyloid A fibrils, which are linked to various chronic inflammatory diseases [2][3] Company Overview - ZyVersa is a clinical stage specialty biopharmaceutical company focused on developing first-in-class drugs for inflammatory and renal diseases, with a significant market opportunity exceeding $100 billion [6][7] - The lead indication for IC 100 is obesity and its related metabolic complications, while another product, VAR 200, targets focal segmental glomerulosclerosis (FSGS) [7] Research Findings - The study indicates that ASC colocalizes with serum amyloid A (SAA) in human AA amyloidosis and that ASC specks accelerate SAA fibril formation [3][4] - In a Pycard knock-out mouse model lacking ASC, splenic amyloid load was significantly decreased, suggesting the importance of ASC in amyloid deposition [3] - Treatment with anti-ASCPYD antibodies resulted in reduced amyloid loads in wild-type mice with AA amyloidosis, supporting the therapeutic potential of targeting ASC [3][4] Product Mechanism - IC 100 is a humanized IgG4 monoclonal antibody designed to inhibit the inflammasome adaptor protein ASC, thereby reducing both the initiation and perpetuation of inflammatory responses [5] - The mechanism involves binding to ASC in various inflammasomes, blocking IL-1β activation, and attenuating the adaptive immune response [5]

Ardmore Shipping Corporation ARD MORE SHIPPING Ardmore Shipping Second Quarter 2024 2 Disclaimer This presentation contains certain statements that may be deemed to be "forward-looking statements" within the meaning of applicable U.S. federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Ardmore Shipping Corporation ("Ardmore" or the "Company") expects, projects, believes or anticipates will, or may occur in the future, are a ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $47.6 million or $1.13 per share for Q2 2024, reflecting strong market conditions [14][25] - The cash breakeven level has been reduced to $12,650 per day, with a potential pathway to further decrease it to below $11,500 per day [24][19] - The company declared a quarterly cash dividend of $0.38 per share, consistent with its policy of paying out one-third of adjusted earnings [16][19] Business Line Data and Key Metrics Changes - The Medium Range (MR) tankers earned $41,400 per day in Q2 2024 and $33,700 per day so far in Q3 2024, with 45% booked [15] - Chemical tankers earned $36,100 per day in Q2 2024 and $31,200 per day in Q3 2024, with 50% booked [15] Market Data and Key Metrics Changes - The company noted exceptionally strong rates during the seasonally slower summer period, driven by positive fundamentals and geopolitical impacts [14][16] - Global refinery runs have surpassed pre-COVID highs, with further growth forecasted into 2025, supporting demand for tankers [18][23] Company Strategy and Development Direction - The company will continue to focus on product and chemical tankers, emphasizing fleet modernization and capital allocation to enhance long-term shareholder value [10][12] - There is a commitment to integrating technology and machine learning into operations, both onboard and ashore, to improve efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market fundamentals, citing a significant supply gap and limited newbuilding deliveries against steady growth in oil demand [20][29] - The leadership transition is expected to maintain continuity in business philosophy and strategy, with a focus on innovation and organizational development [7][10][32] Other Important Information - The company has completed the majority of its drydocking and fleet enhancement program for the year, with capital expenditure payments forecasted at approximately $25 million for 2024 [26] - The implementation of FuelEU Maritime regulations is anticipated to create new trading opportunities due to increased market complexities [27] Q&A Session Summary Question: Market outlook and locking in duration at elevated rates - Management indicated that they are predominantly in the spot market due to strong potential, while also evaluating time charter opportunities as they arise [36] Question: Capital allocation strategy with a net cash position - The capital allocation policy remains unchanged, focusing on deleveraging, fleet efficiency investments, and maintaining substantial dividends [39] Question: Trends in asset values and returns in the MR segment - The company remains committed to capital allocation policies, focusing on upgrading existing fleet assets and identifying market opportunities [42][43] Question: Future growth and fleet size considerations - Management emphasized the importance of both maintaining fleet size and evolving the business, indicating a balanced approach to growth and reinvestment [45] Question: Preferred equity issuance and potential redemption - The sale of e1 Marine does not trigger any automatic actions regarding preferred equity, and there are no immediate plans for redemption [48]

Financial Performance - Ardmore Shipping reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, and up from $0.57 per share a year ago, indicating a significant year-over-year growth [1] - The company achieved revenues of $86.61 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 5.77% and up from $60.4 million in the same quarter last year [1] Earnings Surprises - The quarterly earnings surprise was 4.63%, and the company has surpassed consensus EPS estimates in all four of the last quarters [1] - In the previous quarter, Ardmore Shipping was expected to post earnings of $0.87 per share but delivered $0.92, resulting in a surprise of 5.75% [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $62.55 million, and for the current fiscal year, it is $3.33 on revenues of $282.4 million [4] - The estimate revisions trend for Ardmore Shipping is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [4] Industry Context - The Transportation - Shipping industry is currently in the top 30% of over 250 Zacks industries, indicating a strong industry outlook [5] - Another company in the same industry, Star Bulk Carriers, is expected to report quarterly earnings of $0.79 per share, reflecting a year-over-year increase of 68.1% [5][6]

Fleet and Operations - As of March 31, 2024, Ardmore Shipping Corporation operated a fleet of 26 vessels, including 20 Medium Range (MR) tankers and 6 Eco-Design chemical tankers[9]. - In April 2024, Ardmore delivered the 2010-built Ardmore Seafarer and acquired a 2017 Korean-built MR product tanker, the Ardmore Gibraltar[16]. - Ardmore's fleet expansion strategy includes exercising purchase options for the Ardmore Seawolf and Ardmore Seahawk, expected to close in June 2024[16]. - The company had 22 owned vessels and four chartered-in vessels in operation as of March 31, 2024, with an average fleet age of 9.8 years[81]. - The average number of operating vessels was 26.0 for the three months ended March 31, 2024, compared to 26.7 for the same period in 2023[24]. Financial Performance - Revenue for the three months ended March 31, 2024, was $106.3 million, a decrease of 10% from $118.2 million for the same period in 2023[24]. - Net income for the three months ended March 31, 2024, was $39.2 million, an 11% decrease from $44.1 million for the same period in 2023[24]. - Earnings per share (EPS) for basic shares was $0.93 in Q1 2024, compared to $1.06 in Q1 2023, reflecting a decrease of 12.3%[70]. - The company reported a decrease in comprehensive income to $39,237,000 in Q1 2024 from $43,367,000 in Q1 2023, a decline of 9.8%[72]. - Net cash provided by operating activities was $49.2 million for the three months ended March 31, 2024, down from $56.8 million in the prior year[42]. Expenses and Costs - Voyage expenses decreased by 16% to $30.5 million for the three months ended March 31, 2024, down from $36.6 million in the prior year[26]. - Interest expense and finance costs decreased to $2.5 million for the three months ended March 31, 2024, from $2.9 million in the same period in 2023[31]. - The company paid $8,674,000 in common share dividends in Q1 2024, down from $18,286,000 in Q1 2023, a reduction of 52.5%[78]. - For the three months ended March 31, 2024, net cash used in financing activities was $33.9 million, including $30.0 million in revolver repayments and $8.7 million in cash dividends[44]. Liquidity and Debt - The company had $285.3 million in liquidity available as of March 31, 2024, including cash and cash equivalents of $48.6 million[32]. - As of March 31, 2024, total current assets increased to $143.9 million from $126.8 million as of December 31, 2023[67]. - Total liabilities decreased to $99.1 million as of March 31, 2024, from $116.5 million as of December 31, 2023[67]. - As of March 31, 2024, total debt amounted to $23.1 million, a decrease of 50.7% from $46.8 million as of December 31, 2023[93]. - The Company maintains a minimum cash and cash equivalents requirement of $18.8 million as of March 31, 2024, based on its debt obligations[99]. Market and Economic Conditions - The ongoing Russia-Ukraine war has led to increased spot tanker rates due to disruptions in energy supply chains[18]. - Geopolitical tensions from the Israel-Hamas war have affected trading patterns and expenses in the shipping industry[18]. - The company emphasizes the importance of monitoring tanker markets to adapt chartering strategies based on changing conditions[12]. Environmental and Regulatory Compliance - Ardmore's Energy Transition Plan aims to capitalize on regulations related to energy efficiency and emissions reduction in the shipping industry[11]. - The number of vessels in drydock for 2024 is projected to be 4, with ongoing costs for compliance with environmental regulations expected to increase[47]. - As of March 31, 2024, the company had ballast water treatment systems on 20 owned vessels, with 2 installations in progress[49]. - As of March 31, 2024, the company had scrubber systems on 6 owned vessels, with 3 installations in progress[51]. Investments and Acquisitions - The Company recorded an investment of $10.4 million in equity investments, which includes $9.1 million in E1 and $1.3 million in e1 Marine LLC[89]. - The Company acquired a 2017 Korean-built MR product tanker, the Ardmore Gibraltar, for $42.0 million in April 2024[123]. - The Company sold the 2010-built Ardmore Seafarer for $27.1 million in a separate transaction[123]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.31 per common share for the quarter ended March 31, 2024, to be paid on June 14, 2024[15]. - The Company declared a cash dividend of $0.31 per common share for the quarter ended March 31, 2024, totaling approximately $12.8 million, to be paid on June 14, 2024[123].