Financial Data and Key Metrics Changes - In Q3 2023, the company reported a net profit of $8.9 million or $0.91 per share on revenue of $11.7 million, with a daily time charter equivalent rate of $16,200 [25][34] - Net revenue for the nine-month period was $24.5 million, with an adjusted EBITDA of $13.8 million, including an $11.8 million gain from the sale of the last tanker [11][4] - The company has paid out $1.30 per share in cash dividends during 2023, representing approximately 63% of the current trading price [5][41] Business Line Data and Key Metrics Changes - The company completed the delivery of all previously acquired dry bulk vessels, resulting in a fleet consisting of three Capesizes, two Kamsarmaxes, and three Panamax vessels [26] - The average daily charter rate for the fourth quarter is expected to improve slightly to $14,500 per day, with approximately 87% of operating days fixed at an estimated rate of $14,400 per day [32] Market Data and Key Metrics Changes - The dry bulk market in 2023 has not performed as anticipated, with historically low congestion levels despite strong demand for seaborne transportation of iron ore, coal, and bauxite [9] - Looking ahead, demand growth is expected to surpass fleet growth over the next two years, suggesting a strong market environment [10] Company Strategy and Development Direction - The company remains committed to its shareholder rewards program through dividends and share buybacks, having repurchased 3.5 million common shares at an average price of $1.87 since Q3 2022 [16][18] - The company has not engaged in any public equity offerings since its IPO in July 2022, financing its investments through cash on hand and debt [27][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong market outlook for the sector, positioning the company to take advantage of rising market cycles driven by strong demand for raw materials [18][10] - The company noted that it will continue seeking growth through accretive transactions without resorting to dilutive capital raising [44] Other Important Information - The company has entered into a $30 million refinancing for its Capesize vessels, expecting to complete this transaction soon [15] - The cash position increased to $14.3 million during Q3, with a book value of the fleet raised to $155.5 million [36] Q&A Session Summary Question: Is there a share repurchase authorization in place? - Management confirmed that they are bound by the liquidity of the stock and are currently limited in the amount of shares they can repurchase [19][43] Question: What is the average diluted shares outstanding? - The average diluted shares are around 9.4 million, significantly below the current trading levels [21] Question: Will the company continue to seek acquisitions? - Management indicated that they will continue to seek growth on an accretive basis and are open to more bareboat deals [44]
United Maritime (USEA) - 2023 Q3 - Earnings Call Transcript