Pangaea Logistics Solutions(PANL) - 2024 Q3 - Quarterly Results

Financial Performance - Net income attributable to Pangaea for Q3 2024 was $5.1 million, or $0.11 per diluted share, with total revenue of $153.1 million, representing a year-over-year increase of 12.9%[2][15] - Adjusted EBITDA decreased by 14.2% to $23.9 million in Q3 2024, with an adjusted EBITDA margin of 15.6%, down from 20.6% in the prior year period[4][15] - Net income for the nine months ended September 30, 2024, was $22.72 million, a decrease of 13.8% compared to $26.36 million for the same period in 2023[19] - Gross profit for the three months ended September 30, 2024, was $21,084,541, a decrease of 16.5% from $25,240,555 in the same period of 2023[20] - Net transportation and service revenue for the nine months ended September 30, 2024, was $74,602,353, compared to $74,895,540 for the same period in 2023, reflecting a slight decrease of 0.4%[20] - Adjusted EBITDA for the three months ended September 30, 2024, was $23,917,160, down from $27,880,548 in the same period of 2023, representing a decline of 14.1%[20] - Net income attributable to Pangaea Logistics Solutions Ltd. for the three months ended September 30, 2024, was $5,111,040, a significant decrease of 73.0% from $18,868,291 in the same period of 2023[20] - Earnings per common share - diluted for the three months ended September 30, 2024, was $0.11, down from $0.42 in the same period of 2023, a decline of 73.8%[20] - Non-GAAP adjusted net income attributable to Pangaea for the three months ended September 30, 2024, was $11,072,264, compared to $14,355,855 in the same period of 2023, a decrease of 22.9%[20] Fleet and Operations - Time Charter Equivalent (TCE) rates earned by Pangaea were $16,324 per day, a 4% increase year-over-year, exceeding the average Baltic Panamax and Supramax indices by 19%[2][3] - The company expanded its owned vessel fleet to 26 with the acquisition of Bulk Brenton and Bulk Patience during Q3 2024[2][12] - Pangaea entered into a definitive agreement to merge 15 dry bulk handy-size vessels with M. T. Maritime, expected to close by year-end 2024, increasing the owned fleet size by over 60%[7][10] - Pangaea's total shipping days increased by 4% to 4,805 days compared to the same period last year[2] Financial Position - As of September 30, 2024, Pangaea had $93.1 million in cash and cash equivalents, with total debt of $292.8 million, maintaining a net debt to trailing twelve-month adjusted EBITDA ratio of 2.5x[5][15] - Total assets increased to $749.17 million as of September 30, 2024, up from $705.18 million at December 31, 2023, representing a growth of approximately 6.24%[17] - Cash and cash equivalents decreased to $93.12 million from $99.04 million, reflecting a decline of about 5.9%[19] - Total stockholders' equity rose to $378.81 million, up from $370.20 million, indicating an increase of approximately 2.2%[18] - Total current assets reached $196.24 million, up from $191.83 million, marking an increase of about 2.3%[17] Investment and Cash Flow - Net cash provided by operating activities was $46.41 million, an increase of 55.1% compared to $29.88 million in the same period last year[19] - The company incurred $57.53 million in purchases of vessels and vessel improvements, significantly higher than $27.22 million in the previous year[19] - Proceeds from long-term debt amounted to $64.15 million, with no proceeds reported in the same period last year[19] - The company reported a net cash used in investing activities of $57.35 million, compared to $25.02 million in the prior year, indicating a significant increase in investment outflows[19] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.10 per common share, payable on December 13, 2024[6] - Retained earnings increased to $165.42 million from $159.03 million, reflecting a growth of approximately 4.3%[18] Strategic Focus and Risks - The company is focused on expanding logistics operations at new and existing ports, with ongoing terminal operations expansion in the Port of Tampa expected to complete in the second half of 2025[11][12] - Pangaea's asset-lite, cargo-centric model aims to provide superior durability and cost efficiency, emphasizing profitable growth amid fluctuations in global dry bulk capacity and demand[8][10] - Pangaea Logistics Solutions Ltd. continues to focus on enhancing its logistics services and expanding its market presence in the dry bulk transportation sector[27] - The company anticipates potential risks including fluctuations in charter rates and vessel values, which may impact future performance[29] Derivative Instruments - The company reported an unrealized loss on derivative instruments of $5,961,224 for the three months ended September 30, 2024, compared to a gain of $(4,531,912) in the same period of 2023[20]