Pangaea Logistics Solutions(PANL) - 2025 Q3 - Quarterly Results

Financial Performance - Pangaea reported non-GAAP adjusted net income of $11.2 million, or $0.17 per share, on total revenue of $168.7 million for Q3 2025, reflecting a 10.5% increase in revenue year-over-year [3]. - The company reported a GAAP net income of $12.2 million, or $0.19 per share, for the third quarter [9]. - For the nine months ended September 30, 2025, net income was $7,888,773, a decrease of 65.3% compared to $22,716,256 for the same period in 2024 [21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $59,276,451, a slight decrease of 1.2% from $60,005,756 in 2024 [23]. - The company reported a gross profit of $47,624,288 for the nine months ended September 30, 2025, compared to $52,075,557 in 2024, reflecting a decline of 8.5% [23]. - Basic net income per share for the nine months ended September 30, 2025, was $0.12, unchanged from the same period in 2024 [23]. Operational Metrics - Total Adjusted EBITDA increased by 20.3% to $28.9 million, with an Adjusted EBITDA margin of 17.1%, up from 15.7% in the prior year [5]. - The average Time Charter Equivalent (TCE) rate was $15,559 per day, which is 10% above the average Baltic Panamax, Supramax, and Handysize indices [4]. - Total shipping days increased by 22% to 5,872 days, primarily due to the acquisition of fifteen handy-sized vessels completed in late 2024 [3]. - Pangaea's fleet utilization remained strong, supported by robust demand across key Arctic trade routes, with an owned fleet of 40 vessels and an average of 24 chartered-in vessels [12]. Cash and Debt Position - The company had $94.0 million in unrestricted cash and cash equivalents, with total debt of $386.3 million as of September 30, 2025 [6]. - Cash and cash equivalents at the end of the period were $94,020,373, an increase of 8.0% from $86,805,470 at the beginning of the period [21]. - Total liabilities decreased to $466,585,306 as of September 30, 2025, down 2.5% from $478,141,746 at December 31, 2024 [19]. - The current portion of secured long-term debt remained stable at $16,696,990, compared to $16,576,195 at December 31, 2024 [19]. Strategic Initiatives - Pangaea is advancing strategic growth investments across terminal operations, with new activities underway at Aransas, Pascagoula, and Lake Charles, and operations at Tampa set to launch in early 2026 [11]. - The company completed the sale of the Strategic Endeavor for $7.7 million and has an agreement to sell the Bulk Freedom for $9.6 million, expected to generate a gain of approximately $2.7 million [8]. Non-GAAP Financial Measures - Pangaea Logistics Solutions Ltd. utilizes non-GAAP financial measures for internal decision-making and performance evaluation, providing transparency to investors [25]. - Adjusted EBITDA excludes interest, taxes, depreciation, and other non-recurring items, providing a clearer view of operational performance [28]. - Adjusted earnings per share (EPS) accounts for various losses and non-recurring charges, offering a more accurate measure of profitability [28]. - Limitations exist in comparing non-GAAP measures like adjusted EBITDA and adjusted EPS to GAAP measures, highlighting the need for careful analysis [29]. Market and Risk Factors - Forward-looking statements indicate potential risks, including fluctuations in charter rates, operating expenses, and regulatory changes [31]. - The company disclaims any obligation to update forward-looking statements, emphasizing the inherent uncertainties in the logistics and transportation sector [31]. Assets and Equity - Total current assets increased to $212,622,757 as of September 30, 2025, up 10.7% from $191,993,893 at December 31, 2024 [19]. - The company’s total assets were $932,145,629 as of September 30, 2025, a slight decrease from $936,457,081 at December 31, 2024 [19]. - The company’s total stockholders' equity decreased to $465,560,323 as of September 30, 2025, down from $474,664,335 at December 31, 2024 [19]. Revenue Recognition - Gross profit is calculated as total revenue minus net transportation and service revenue, as well as vessel depreciation and amortization [26]. - Net transportation and service revenue is defined as total revenue less direct costs, including charter hire and vessel operating expenses, and is not recognized under U.S. GAAP [27].