Financial Data and Key Metrics Changes - The company reported a net income of $500,000 with an adjusted net loss of $7,800,000 or $0.07 adjusted loss per share for Q1 2025 [4] - Adjusted EBITDA for the quarter was $49,000,000 [4] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000 [5] - The average net debt per vessel decreased from $11,600,000 to $5,400,000 since 2021, a reduction of over 50% [7] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217 [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - Total dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025 [22] - Chinese dry bulk imports contracted by 8.3% year on year during Q1 2025, driven by elevated inventories and rising domestic production [25] - The average steaming speed of the fleet reached a new record low of 10.8 knots in February due to soft freight rates and environmental regulations [21] Company Strategy and Development Direction - The company continues to prioritize returns to shareholders, having taken actions totaling $2,600,000,000 in dividends, share buybacks, and debt repayments since 2021 [6] - The integration of the Eagle Bulk transaction has resulted in almost $40,000,000 in cumulative cost synergies [11] - The company plans to invest in energy-saving technologies and upgrade its fleet to comply with IMO carbon reduction regulations [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations [34] - The geopolitical landscape and macroeconomic factors are seen as potential positives, while challenges include reduced coal imports from China and uncertainties in global trade [40][44] - The company anticipates a moderate year with potential upward movement if geopolitical tensions ease [46] Other Important Information - The company has completed the integration process of the Eagle Bulk transaction across all departments [5] - The expected drydock expense schedule for the remainder of 2025 is estimated at $47,000,000 for 38 vessels [13] Q&A Session Summary Question: Market outlook and asset values - Management noted that while rates are stable, asset values are holding up well, and the market may see gradual progress in the coming quarters [36][38] Question: Timing for asset sales and cash inflow - The company confirmed that proceeds from announced vessel sales will be received in the second and early third quarters of 2025, totaling approximately $38,500,000 [51] Question: Use of sales proceeds - The priority for the use of sales proceeds will be share buybacks as long as shares trade at a significant discount to NAV [52] Question: Demolition rates and future outlook - Management indicated that environmental regulations could lead to increased scrapping of older vessels, but the immediate effect will be on operational speeds and drydock delays [60][62] Question: Buyers' intentions for older ships - The company explained that as long as vessels are not making a loss, they are not scrapped, and buyers may have different return expectations [58]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net income of $500,000 with an adjusted net loss of $7,800,000, equating to an adjusted loss per share of $0.07. Adjusted EBITDA was $49,000,000 for the quarter [4][5] - The company repurchased 1,300,000 shares for a total consideration of $19,600,000 and declared a dividend of $0.05 per share [4][5] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000, resulting in pro forma liquidity of almost $500,000,000 [5][6] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217, leading to a TCE less OpEx and cash G&A of approximately $6,220 per day per vessel [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - The dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025, with the IMF revising its global economic growth forecast to 2.8% [22][24] - Total dry bulk volumes were up year on year in Q1, supported by strong bauxite and minor bulk shipments, while iron ore, coal, and grains volumes combined declined by 3.5% year on year [24][25] Company Strategy and Development Direction - The company continues to focus on capital allocation to strengthen its position, having taken actions totaling $2,600,000,000 in dividends, share buybacks, and debt repayments since 2021 [6] - The company is investing in energy-saving technologies and fleet upgrades to comply with IMO carbon reduction regulations, with 42 installations completed and another 21 planned for 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations as potential positives [33] - The geopolitical landscape and macroeconomic factors were highlighted as influencing market conditions, with potential reconstruction efforts in conflict areas seen as a positive catalyst for trade [40][41] Other Important Information - The company has completed the integration of the Eagle Bulk transaction, achieving almost $40,000,000 in cumulative cost synergies since its completion [10][11] - The average age of the fleet is 11.9 years, with plans to dispose of non-eco vessels to improve overall fleet efficiency [15] Q&A Session Summary Question: Market outlook and asset values - Management acknowledged the current holding pattern in dry bulk rates and asset values, indicating that something must give in the future [36][37] Question: Timing for asset sales and cash inflow - The company confirmed that proceeds from announced vessel sales will be fully received in the second and early third quarters of 2025 [52] Question: Use of sales proceeds - The priority for the use of sales proceeds will be on share buybacks as long as shares trade at a meaningful discount to NAV [53] Question: Future demolition rates - Management indicated that environmental regulations could lead to increased demolition rates in the future, particularly for older, less efficient vessels [62]