Core Viewpoint - Pangaea Logistics Solutions Ltd. reported a non-GAAP adjusted net loss of $1.4 million for Q2 2025, with total revenue of $156.7 million, reflecting challenges in the maritime logistics sector due to decreased TCE rates and increased shipping days [3][4][5]. Financial Performance - The company experienced a non-GAAP adjusted net loss of $1.4 million, or $0.02 per share, compared to a net income of $3.7 million in the same period of 2024 [3][12]. - Total revenue for the second quarter of 2025 was $156.7 million, up from $131.5 million in Q2 2024 [3][16]. - Adjusted EBITDA decreased by 4.1% to $15.3 million, with an adjusted EBITDA margin of 9.8%, down from 12.1% in the prior year [5][12]. Shipping Operations - The average TCE rate earned was $12,108 per day, a decrease from $16,223 per day in Q2 2024, but exceeded benchmark averages by 17% [4][12]. - Total shipping days increased by 51% to 6,222 days, primarily due to the acquisition of fifteen handy-sized vessels [3][5]. Debt and Cash Position - As of June 30, 2025, the company had $59.3 million in cash and cash equivalents, with total debt of $379.7 million [6][12]. - The company repaid $7.1 million in finance leases and $4.1 million in long-term debt during the quarter [6][12]. Strategic Developments - Pangaea sold the Strategic Endeavor for $7.7 million and purchased the remaining 49% equity ownership of Seamar Management for $2.7 million [7][12]. - The company is focused on disciplined capital deployment, including share repurchases and financing for new vessels [9][10]. Market Outlook - The CEO noted a dynamic global trade environment with signs of stabilization and increased activity in the panamax and supramax segments as the company enters the peak arctic trade season [9][10]. - The company is expanding its terminal operations, with new operations planned in multiple ports [9][11].

Company Overview - Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) is a global provider of comprehensive maritime logistics solutions, catering to a diverse range of industrial customers requiring transportation of various dry bulk cargoes such as grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone [3]. Financial Results Announcement - The company will release its second quarter 2025 financial results after the market closes on August 7, 2025, followed by a conference call on August 8, 2025, at 8:00 a.m. ET to discuss the results and conduct a Q&A session [1]. Conference Call Details - The conference call will include presentation materials available on the company's SEC filing and Investor Relations section of its website [2]. - Domestic participants can join the live teleconference at 1-833-316-1983, while international participants can call 1-785-838-9310, using Conference ID: PANLQ225 [2]. - A replay of the teleconference will be available until August 15, 2025, with domestic and international replay numbers provided [2].

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular strategy for finding undervalued stocks that offer profit potential [2] Company Analysis: Pangaea Logistics Solutions (PANL) - Pangaea Logistics Solutions (PANL) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is a strong value stock [3] - PANL's price-to-book (P/B) ratio is 0.69, significantly lower than the industry average of 1.29, suggesting it may be undervalued [4] - The company's P/S ratio stands at 0.56, compared to the industry's average of 1.31, reinforcing the notion of undervaluation [5] - Overall, PANL's strong value metrics and positive earnings outlook position it as an impressive value stock currently [6]

Core Insights - Pangaea Logistics Solutions, Ltd. operates a fleet of dry bulk vessels focusing on specialized trade routes with less competition, particularly in ice-class operations in the Atlantic and Caribbean [1] Company Overview - Pangaea Logistics Solutions is a U.S.-based shipping company that emphasizes harder-to-access trade routes [1] Market Focus - The company targets specialized shipping routes that are less competitive, which may provide unique investment opportunities [1]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of approximately $2 million for Q1 2025, compared to a net income of $11.7 million in the same period last year [16][17] - Adjusted EBITDA for Q1 2025 was $14.8 million, a decrease of approximately $5.2 million year-over-year [14][17] - Total cash from operations decreased by $13.2 million year-over-year, resulting in net cash used in operations of $4.3 million [17] - The company ended the quarter with $63.9 million in cash and total debt of approximately $390 million [17] Business Line Data and Key Metrics Changes - Total shipping days rose 24.6% year-over-year, primarily driven by the addition of SSI handy fleet vessels [6][14] - On a comparable basis, shipping days increased by 41%, highlighting the contribution of the acquisition to operational scale [7] - TCE rates for Q1 2025 were $11,390 per day, a premium of approximately 33% over average market rates [14] Market Data and Key Metrics Changes - Average market pricing declined 37% compared to the prior year period, impacting overall performance [6][14] - The dry bulk sector continues to experience elevated levels of volatility and uncertainty, with the company closely monitoring potential indirect effects from proposed tariffs [9][10] Company Strategy and Development Direction - The company is focused on a disciplined capital allocation strategy, prioritizing balance sheet strength while delivering long-term value through shareholder returns [11][12] - A new share repurchase program of up to $15 million has been authorized, alongside a declaration of a 5¢ dividend [11] - The company is investing in its port and logistics business, with expansions at the Port of Tampa and new operations in Port Charles and Port of Aransas [12] Management's Comments on Operating Environment and Future Outlook - Management noted that demand trends have remained steady across key routes, although pricing reflects global macro and trade policy uncertainties [10] - The company does not expect material impact from proposed port fees due to its geographic focus and operating model [10] - Management emphasized the importance of flexibility and adaptability in the current environment [61] Other Important Information - Vessel operating expenses decreased in areas like insurance due to a larger footprint, with a goal to implement cost savings of at least $2.5 million annually [9] - The company has made substantial progress integrating the SSI fleet into its operating platform, expecting to unlock further operating efficiencies [8] Q&A Session Summary Question: Dividend strategy and buyback plans - Management explained the modification of the dividend to 5¢ per quarter and the introduction of a buyback program, indicating a preference for reinvestment in the business while evaluating shareholder returns [22][30] Question: Integration savings from the SSI fleet - Management indicated that the cost reduction program includes both integration savings and ongoing operational reviews, with some easy targets identified for cost decreases [26][27] Question: Long-term contract cover and shipping days - Management confirmed that approximately 30% of the fleet is typically covered by long-term contracts, with 4,275 shipping days booked for Q2 at a TCE of $12,524 per day [48][56] Question: Future debt repayments and capital allocation - Management stated that debt repayments will continue at a consistent rate, with a focus on maintaining balance sheet flexibility while also considering dividends and buybacks [50]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported an adjusted net loss of approximately $2 million and adjusted EBITDA of $14.8 million, with average market pricing declining by 37% compared to the prior year period [5][12] - Total shipping days increased by 24.6% year over year, primarily due to the addition of SSI handy fleet vessels, with a comparable basis showing a 41% increase [5][6] - The reported GAAP net loss attributable to the company was approximately $2 million, or a loss of $0.03 per diluted share, compared to net income of $11.7 million, or $0.25 per diluted share in the first quarter of last year [12][13] Business Line Data and Key Metrics Changes - TCE rates for Q1 2025 were $11,390 per day, a premium of approximately 33% over average published market rates for Panamax, Supramax, and Handysize vessels [11] - Vessel operating expenses increased by approximately 75% year over year, primarily due to the acquisition of the SSI fleet, which increased total owned days by 61% [12] Market Data and Key Metrics Changes - The dry bulk sector continues to experience elevated levels of volatility and uncertainty, with the company closely monitoring potential indirect effects from proposed tariffs [7][8] - Over 95% of the company's tonnage is tied to nonagricultural bulks, insulating it from some demand and policy volatility faced by other dry bulk operators [8] Company Strategy and Development Direction - The company is focused on prudent capital allocation, with a new share repurchase program authorized for up to $15 million and a declared dividend of $0.05 [9] - Strategic fleet transactions will be evaluated to support long-term efficiency and preserve a competitive age profile, while investments in port and logistics business are ongoing [10] Management's Comments on Operating Environment and Future Outlook - Management noted that demand trends have remained steady across key routes, although pricing reflects global macro and trade policy uncertainties [8] - The company aims to implement cost savings of at least $2.5 million annually by year-end through operational synergies and cost reductions [7][20] Other Important Information - The company completed 160 days of planned off-hire for vessel drydocking during the quarter, optimizing fleet availability for stronger demand periods [6] - Total cash from operations decreased by $13.2 million year over year, leading to net cash used in operations of $4.3 million [13] Q&A Session Summary Question: Dividend strategy and buyback plans - Management discussed the modification of the cash return strategy, emphasizing the importance of reinvesting in the business while also considering share buybacks due to recent share price movements [16][17] Question: Clarification on dividend cut - Management explained that the decision to reduce the dividend was influenced by a new thought process on the board regarding share buybacks and the need for a prudent approach to capital returns [22][23] Question: Long-term contract cover - Management indicated that the average contract cover for the owned fleet is around 30%, with significant cover expected to kick in during the summer ice season in Q3 [35][40] Question: Debt repayment strategy - Management confirmed that debt repayments will continue at a consistent rate, with no significant changes expected until a balloon payment in early 2027 [37]

1Q25 Earnings Call Presentation Safe Harbor 1Q25 Earnings Call Presentation This presentation may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea's and managements' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those ...

Pangaea Logistics (PANL) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this maritime logistics company would post a loss of $0.06 per share when it actually produced earnings of $0.16, delivering a surprise of 366.67%.Over the last four quarters, ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show total revenue increased to **$122.8 million**, but higher operating expenses led to a **net loss of $2.2 million**, reversing the prior year's net income [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Q1 2025 saw a **net loss of $2.0 million** attributable to Pangaea, a significant downturn from Q1 2024's net income, driven by increased operating expenses despite 17% revenue growth Q1 2025 vs Q1 2024 Statement of Operations Highlights | Metric | Q1 2025 (unaudited) | Q1 2024 (unaudited) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $122.8M | $104.7M | +17.2% | | **Total Expenses** | $119.9M | $93.7M | +27.9% | | **Income from Operations** | $2.9M | $11.0M | -73.5% | | **Net (Loss) Income** | ($2.2M) | $12.7M | -117.4% | | **Net (Loss) Income Attributable to Pangaea** | ($2.0M) | $11.7M | -117.0% | | **Diluted (Loss) Earnings Per Share** | ($0.03) | $0.25 | -112.0% | Balance Sheet Summary | Metric | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $63.9M | $86.8M | | **Total current assets** | $175.9M | $192.0M | | **Total assets** | $918.0M | $936.5M | | **Total current liabilities** | $109.0M | $109.1M | | **Total stockholders' equity** | $467.2M | $474.7M | Q1 2025 vs Q1 2024 Cash Flow Summary | Metric | Q1 2025 (unaudited) | Q1 2024 (unaudited) | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | ($4.4M) | $9.0M | | **Net cash used in investing activities** | ($0.5M) | ($0.2M) | | **Net cash used in financing activities** | ($18.0M) | ($12.0M) | | **Net change in cash and cash equivalents** | ($22.9M) | ($3.2M) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail operations, accounting policies, and financial position, including a **41-vessel fleet**, **$386.7 million in debt**, covenant compliance, and a **$0.05 per share dividend** declared post-quarter - As of March 31, 2025, the company's owned fleet comprises **41 drybulk vessels** (including those from the December 2024 Strategic Shipping merger) and one barge. This includes vessels held through its two-thirds ownership in Nordic Bulk Holding Company Ltd. (NBHC)[21](index=21&type=chunk)[22](index=22&type=chunk)[47](index=47&type=chunk) - The company was in compliance with all financial covenants for its debt and financing obligations as of March 31, 2025[53](index=53&type=chunk)[56](index=56&type=chunk) - On May 8, 2025, the Board of Directors declared a quarterly cash dividend of **$0.05 per share** and authorized a new share repurchase program for up to **$15.0 million** of the company's common stock[84](index=84&type=chunk)[85](index=85&type=chunk) - The company's accounts receivable balance includes a concentration of credit risk, with one significant customer comprising **29%** of the total as of March 31, 2025[26](index=26&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 2025 net loss to challenging market conditions, including a **39% lower BDI**, despite **17% revenue growth** driven by fleet expansion, offset by surging operating expenses [Industry Overview and Key Metrics](index=32&type=section&id=Industry%20Overview%20and%20Key%20Metrics) Q1 2025 saw dry bulk industry headwinds with a **39% BDI decrease**, yet the company's **$11,390 TCE rate** outperformed market averages by **33%** due to strategic contracts and fleet expansion Market Index Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 Average | Q1 2024 Average | Change | | :--- | :--- | :--- | :--- | | **Baltic Dry Index (BDI)** | 1,118 | 1,824 | -39% | | **Panamax, Supramax, Handysize Rates** | $8,548 | $13,671 | -37% | - The company's achieved TCE rate for Q1 2025 was **$11,390**, a **36% decrease** from **$17,697** in Q1 2024, but it outperformed the average market rates by approximately **33%**[107](index=107&type=chunk) - Operating results were significantly impacted by a fleet expansion at the end of 2024, which added **15 vessels** and increased owned shipping days by **1,275** in Q1 2025 compared to Q1 2024[105](index=105&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased **17% to $122.8 million** due to higher shipping days, but operating expenses, particularly voyage and vessel operating costs, surged significantly, while charter hire expenses decreased Revenue Breakdown (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Voyage Revenues** | $109.7M | $87.3M | +26% | | **Charter Revenues** | $10.0M | $15.0M | -34% | | **Terminal & Stevedore** | $3.1M | $2.4M | +30% | | **Total Revenue** | **$122.8M** | **$104.7M** | **+17%** | Key Expense Breakdown (Q1 2025 vs Q1 2024) | Expense Type | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Voyage Expenses** | $60.3M | $37.1M | +62% | | **Charter Hire Expenses** | $17.6M | $27.1M | -35% | | **Vessel Operating Expenses** | $22.2M | $12.7M | +75% | - The increase in voyage revenue was driven by a **48% increase** in voyage days (**4,196 vs 2,830**), resulting from the fleet expansion[110](index=110&type=chunk) - The decrease in charter hire expense was driven by a **37% decline** in average market rates for chartered-in vessels, despite a **14% increase** in chartered-in days[116](index=116&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital decreased to **$66.9 million** as of March 31, 2025, with Q1 2025 experiencing a **$4.4 million net cash outflow** from operations and increased financing activities, including **$6.4 million** in drydocking costs Working Capital | Date | Working Capital | | :--- | :--- | | **March 31, 2025** | $66.9 million | | **December 31, 2024** | $82.9 million | Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Activities** | ($4.4) | $9.0 | | **Investing Activities** | ($0.5) | ($0.2) | | **Financing Activities** | ($18.0) | ($12.0) | - Capitalized drydocking costs were a major capital expenditure, totaling approximately **$6.4 million** in Q1 2025, compared to **$1.3 million** in Q1 2024[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures about Market Risks](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) No significant changes to the company's market risk profile were reported since December 31, 2024, with further details available in the Annual Report on Form 10-K - There have been no significant changes to the company's market risk profile since December 31, 2024[133](index=133&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective as of March 31, 2025, due to a material weakness in internal control over financial reporting related to ASC 606 revenue recognition, with remediation efforts underway - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a previously identified material weakness in internal control over financial reporting[134](index=134&type=chunk) - The material weakness relates to the design and documentation of controls over the review and application of the revenue recognition policy under ASC 606[134](index=134&type=chunk) - Remediation actions were implemented in Q1 2025, including enhanced review procedures for revenue recognition, but the material weakness is not yet considered fully remediated[135](index=135&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal disputes, primarily cargo claims, which are not expected to materially impact financial position or results - The company is subject to various legal disputes, mainly cargo claims, which are considered part of the ordinary course of business[137](index=137&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported, with comprehensive details available in the Annual Report on Form 10-K for December 31, 2024 - The report refers to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive discussion of potential risks[138](index=138&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None [Defaults upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No other information required for disclosure under this item was reported - None [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including CEO and CFO certifications under the Sarbanes-Oxley Act and XBRL instance documents - Exhibits filed with the report include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act[143](index=143&type=chunk)

Financial Performance - Pangaea reported a non-GAAP adjusted net loss of $2.2 million, or $0.03 per share, on total revenue of $122.8 million for the first quarter of 2025[3]. - For the three months ended March 31, 2025, the net loss was $2,198,674 compared to a net income of $12,665,634 in the same period of 2024[25]. - Gross profit decreased to $10,228,418 in Q1 2025 from $18,333,600 in Q1 2024, reflecting a significant decline in profitability[27]. - Net transportation and service revenue fell to $20,124,431 in Q1 2025, down from $25,742,595 in Q1 2024, indicating a decrease of approximately 21.8% year-over-year[27]. - Adjusted EBITDA for Q1 2025 was $14,774,444, compared to $19,947,193 in Q1 2024, representing a decline of about 26%[27]. - The company reported a basic net loss per share of $0.03 for Q1 2025, compared to earnings of $0.26 per share in Q1 2024[27]. Cash and Debt Position - The company had $63.9 million in cash and cash equivalents and total debt of $390.8 million as of March 31, 2025[6]. - Cash and cash equivalents at the end of Q1 2025 were $63,948,677, down from $95,873,255 at the end of Q1 2024, reflecting a decrease of approximately 33.3%[25]. - Net cash used in operating activities was $(4,355,819) in Q1 2025, compared to $8,999,281 provided in Q1 2024, indicating a significant cash outflow[25]. - The company incurred $6,732,470 in cash dividends paid during Q1 2025, an increase from $4,874,127 in Q1 2024[25]. - Payments of long-term debt increased to $4,129,304 in Q1 2025 from $3,356,824 in Q1 2024, reflecting a rise of approximately 23%[25]. - The company experienced a net change in cash and cash equivalents of $(22,856,793) in Q1 2025, compared to $(3,164,611) in Q1 2024, indicating a worsening liquidity position[25]. Operational Metrics - Time Charter Equivalent (TCE) rates decreased by 36% year-over-year to $11,390 per day, compared to $17,697 per day in the same period of 2024[4]. - Total Adjusted EBITDA decreased by 24.2% to $14.8 million, with an Adjusted EBITDA margin of 12.0%, down from 18.6% in the prior year[5]. - The company executed 4,275 shipping days at an average TCE of $12,524 per day for the second quarter, indicating continued strength in its commercial platform[11]. - Pangaea's owned fleet of 41 vessels was well utilized on average, despite 160 days of off-hire due to dry dockings, supplemented by an average of 19 chartered-in vessels[15]. Strategic Initiatives - Pangaea's Board of Directors authorized a new share repurchase program of up to $15 million, representing 5.6% of the company's market capitalization[7]. - A quarterly cash dividend of $0.05 per common share was declared, to be paid on June 16, 2025[8]. - Pangaea is focused on integrating the acquired Handysize fleet to unlock operational efficiencies and expand its terminal services at the Port of Tampa, with completion expected in the second half of 2025[14]. - The company plans to selectively invest in its fleet to maximize TCE rates and meet evolving regulatory requirements[16].