Pangaea Logistics Solutions(US:PANL)2025-03-13 21:07Financial Performance - For Q4 2024, Pangaea reported non-GAAP adjusted net income of $7.6 million, or $0.16 per diluted share, on total revenue of $147.2 million, reflecting a 10.5% increase in revenue year-over-year [4]. - Adjusted EBITDA for Q4 2024 grew by 18% year-over-year to $23.2 million, with an adjusted EBITDA margin of 16.4%, up from 14.9% in the same period last year [6]. - For the full year 2024, Pangaea reported non-GAAP adjusted net income of $29.9 million, or $0.65 per diluted share, on total revenues of $536.5 million, marking a 7.5% increase in revenue compared to 2023 [7]. - Net income for 2024 was $31.77 million, up from $28.54 million in 2023, reflecting a year-over-year increase of 7.8% [23]. - Adjusted EBITDA for 2024 was $83.04 million, compared to $79.72 million in 2023, indicating a growth of 4.3% [25]. - The company reported a gross profit of $73.18 million for 2024, up from $69.25 million in 2023, a rise of 5.6% [25]. - Earnings per common share (diluted) increased to $0.63 in 2024 from $0.58 in 2023, a growth of 8.6% [25]. Revenue and Shipping Metrics - The average Time Charter Equivalent (TCE) rate earned was $15,942 per day, a decrease of 10% compared to $17,685 per day in Q4 2023, while total shipping days increased by 17% to 4,800 days [5]. - The company's total shipping days for 2024 increased by 4.2% to 17,407 days, while full-year TCE rates increased by 4.0% year-over-year [7]. Cash and Debt Management - As of December 31, 2024, Pangaea had $86.8 million in cash and cash equivalents, with total debt of $401.8 million, primarily due to the acquisition of fifteen handy-size dry bulk vessels [8]. - Cash and cash equivalents decreased to $86.81 million in 2024 from $99.04 million in 2023, a decline of 12.2% [23]. - Total current liabilities rose to $109.11 million in 2024, compared to $105.33 million in 2023, an increase of 3.4% [21]. - The company paid $18.7 million in total cash dividends during the full year 2024, including $4.8 million in Q4, aligning with its sustainable return of capital strategy [9]. Investments and Acquisitions - Pangaea completed the acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (SSI), enhancing its fleet to 41 owned vessels and expanding its market presence [11]. - The company invested $69.26 million in the purchase of vessels and vessel improvements in 2024, compared to $27.26 million in 2023, an increase of 154.5% [23]. Operational Developments - The company opened new terminal servicing operations in Texas and Louisiana in 2024, and expanded services in Tampa, Florida, to enhance logistics capabilities [11]. - Pangaea's operational strategies include comprehensive services such as cargo loading, port operations, and vessel management [32]. Financial Metrics and Non-GAAP Measures - Pangaea Logistics Solutions Ltd. utilizes non-GAAP financial measures such as non-GAAP net revenue, adjusted EBITDA, and adjusted EPS for internal decision-making and performance evaluation [26]. - The company defines net transportation and service revenue as total revenue minus direct costs, which is not recognized under U.S. GAAP [29]. - Adjusted EBITDA excludes interest expense, income taxes, depreciation, and other non-operating items, providing a clearer view of operational performance [30]. - Pangaea's adjusted earnings per share accounts for non-recurring charges and losses related to vessel sales and impairments [30]. - The company emphasizes the importance of non-GAAP measures for transparency and comparison with historical performance [27]. Market Outlook and Risks - Pangaea anticipates that the slowing global demand growth may impact TCE rates but aims to leverage its expanded scale for commercial growth and improved economies of scale in 2025 [11]. - The company faces risks including fluctuations in charter rates, operating expenses, and changes in demand for dry bulk shipping capacity [33]. - The company is subject to various uncertainties that could impact future performance, including economic conditions and regulatory changes [33]. Asset and Equity Growth - Total assets increased to $936.46 million in 2024 from $705.18 million in 2023, representing a growth of 32.7% [21]. - Total stockholders' equity increased to $474.66 million in 2024 from $370.20 million in 2023, a growth of 28.2% [21]. - The company recorded a net cash provided by operating activities of $65.69 million in 2024, compared to $53.79 million in 2023, an increase of 22.1% [23].