Pangaea Logistics Solutions(PANL) - 2025 Q2 - Quarterly Results

Pangaea Logistics Solutions Q2 2025 Earnings Release Financial Highlights The company reported a non-GAAP adjusted net loss of $1.4 million on increased revenue, as a 51% rise in shipping days was offset by a 25% decline in TCE rates Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $156.7 million | $131.5 million | +19.2% | | Non-GAAP Adjusted Net Loss | ($1.4 million) | $4.6 million (Income) | - | | Adjusted EPS | ($0.02) | $0.10 | - | | Adjusted EBITDA | $15.3 million | $15.9 million | -4.1% | | TCE Rate per day | $12,108 | $16,223 | -25% | | Total Shipping Days | 6,222 | ~4,120 | +51% | - The company's TCE rate of $12,108 per day outperformed the average Baltic Panamax, Supramax, and Handysize indices by 17%, attributed to its long-term contracts (COAs) and specialized fleet[4] Balance Sheet and Capital Allocation (as of June 30, 2025) | Item | Amount | | :--- | :--- | | Cash and Cash Equivalents | $59.3 million | | Total Debt (incl. finance leases) | $379.7 million | | Finance Lease Repayments (Q2) | $7.1 million | | Long-Term Debt Repayments (Q2) | $4.1 million | | Dividends Paid (Q2) | $3.2 million | | Stock Repurchases (Q2) | $1.0 million | - Recent corporate activities include the sale of the vessel Strategic Endeavor for $7.7 million, the acquisition of the remaining 49% of Seamar Management for $2.7 million, and initiating financing for two other vessels[7] - The Board of Directors declared a quarterly cash dividend of $0.05 per common share[8] Management Commentary Management noted premium TCE returns despite market pressures, citing signs of Q3 stabilization and a focus on disciplined capital deployment and operational expansion - CEO Mark Filanowski stated that the company's focused execution and flexible business model allowed it to achieve premium TCE returns even as market rates were pressured[9] - Market uncertainty around tariffs and port fees is causing shippers to delay long-term commitments; however, seasonal demand in South America led to an uptick in market rates at the end of Q2[9] - Entering Q3, the company sees signs of stabilization and increased activity, particularly in its panamax and supramax segments, driven by the seasonal arctic trade, and has achieved an average TCE of $14,272 per day quarter-to-date[9] - The company is focused on disciplined capital deployment, highlighted by the repurchase of over 200,000 shares, financing two vessels, and the opportunistic sale of an older vessel[11] - Pangaea is expanding its land-based operations, with equipment installation beginning at its Redwing Terminal in Tampa and new terminal operations starting in Texas, Louisiana, and Mississippi[11] Strategic Update The company's strategy centers on developing its integrated dry bulk logistics services by leveraging its specialized fleet, expanding terminal operations, and renewing its assets - The company aims to be a leading dry bulk logistics company by providing specialized shipping and supply chain offerings in niche markets to drive premium TCE returns[12] - Pangaea is leveraging its integrated model, which combines the world's largest high ice class dry bulk fleet with stevedoring, port, and terminal operations[13] - In Q2, the owned fleet of 41 vessels was well utilized, supplemented by an average of 29 chartered-in vessels to meet cargo commitments[14] - The company continues its fleet renewal strategy by selectively investing in vessels and divesting older assets, such as the sale of the 2010-built Strategic Endeavor[15] Financial Statements The unaudited statements show a Q2 net loss, a stable asset base with lower cash, and positive operating cash flow offset by financing activities like debt repayment Consolidated Statements of Operations Higher revenue in Q2 2025 was outpaced by expense growth, leading to a 52% decrease in operating income and a net loss of $2.9 million Q2 Statement of Operations Summary (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $156.7 | $131.5 | | Total Expenses | $153.0 | $123.9 | | Income from Operations | $3.7 | $7.6 | | Total Other Expense, Net | ($6.6) | ($3.6) | | Net (Loss) Income | ($2.9) | $4.0 | | Net (Loss) Attributable to Pangaea | ($2.7) | $3.7 | | (Loss) Earnings Per Share (Diluted) | ($0.04) | $0.08 | Consolidated Balance Sheets As of June 30, 2025, total assets decreased slightly to $916.0 million, primarily due to a $27.6 million reduction in cash and cash equivalents Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59.3 | $86.8 | | Total current assets | $184.0 | $192.0 | | Total assets | $916.0 | $936.5 | | Total current liabilities | $126.0 | $109.1 | | Total liabilities | $456.9 | $461.8 | | Total stockholders' equity | $459.1 | $474.7 | Consolidated Statements of Cash Flows For the first half of 2025, the company generated $10.0 million in operating cash, which was offset by $35.2 million used in financing activities Six-Month Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10.0 | $18.0 | | Net cash used in investing activities | ($2.4) | ($9.1) | | Net cash used in financing activities | ($35.2) | ($29.9) | | Net change in cash and cash equivalents | ($27.6) | ($21.1) | Non-GAAP Financial Measures The company reported a slight decrease in Adjusted EBITDA to $15.3 million and a non-GAAP adjusted net loss of $1.4 million for Q2 2025 Reconciliation of Net (Loss) Income to Adjusted EBITDA (Q2) | Line Item (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income | ($2.9) | $4.0 | | Interest expense, net | $5.7 | $3.1 | | Depreciation and amortization | $10.6 | $7.5 | | EBITDA | $13.4 | $14.5 | | Non-GAAP Adjustments | $1.9 | $1.4 | | Adjusted EBITDA | $15.3 | $15.9 | Reconciliation to Non-GAAP Adjusted Net (Loss) Income (Q2) | Line Item (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to Pangaea | ($2.7) | $3.7 | | Add: Unrealized loss on derivative instruments | $1.3 | $0.9 | | Non-GAAP adjusted net (loss) income | ($1.4) | $4.6 | | Adjusted EPS - diluted | ($0.02) | $0.10 | - Management uses non-GAAP measures like Adjusted EBITDA and Adjusted EPS for internal decision-making and to evaluate period-to-period performance of the core business[27] Corporate Information This section provides details for the Q2 2025 earnings conference call, an overview of Pangaea's business, and the forward-looking statements disclaimer - The company will host a conference call to discuss financial results on Friday, August 8, at 8:00 a.m. ET[16] - Pangaea provides seaborne drybulk logistics and transportation services, including terminal and stevedoring operations, for a wide variety of industrial customers and cargoes[32] - The press release contains forward-looking statements that are subject to various risks and uncertainties, including fluctuations in charter rates, changes in demand, and general market conditions[33]