Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 08:00 am ET

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Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Eagle Bulk Shipping Third Quarter 2019 Results Conference Call. [Operator Instructions].

I would now like to turn the call over to Gary Vogel Chief Executive Officer; and Frank De Costanzo Chief Financial Officer of Eagle Bulk Shipping. Mr. Vogel you may begin.

Executive
Gary Vogel

Thank you and good morning. I'd like to welcome everyone to Eagle Bulk's third quarter 2019 earnings call. To supplement our remarks today I encourage participants to access a slide presentation that is available on our website at eagleships.com. Please note that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance and are inherently subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Please refer to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties that may have a direct bearing on our operating results our performance and our financial condition. Our discussion today also includes certain non-GAAP financial measures including EBITDA adjusted EBITDA and TCE. Please refer to the appendix in the presentation and our earnings release filed with the Securities and Exchange Commission for more information concerning non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measures.

It's also worth noting that the Baltic Supramax Index or BSI that we will reference throughout the presentation today is basis to BSI-58 Index. Please now turn to slide three for the agenda for today's call. We will first provide you with a brief update overview on Eagle's business and our fleet scrubber initiative. After that Frank will provide a detailed review of our third quarter financials. We'll then wrap up the call with a brief review of the rate environment and industry fundamentals and this will be followed by Q&A. Please turn to slide five. Since the beginning of the third quarter Eagle's been very active on a number of strategic and financial fronts. As previously reported we relocated our European offices to Copenhagen continued to execute on our fleet scrubber installation program reached agreements to acquire 6 modern high-specification Ultramaxes for approximately $122 million and raised $148 million in debt which was comprised of $114 million convertible bond and a $34 million upsize to our term loan facility.

As of today we've taken delivery of 4 of the 6 vessels all of which are scrubber-fitted and expect to take delivery of the remaining 2 Ultramaxes this quarter. We also closed on the sales of the Kestrel a 15-year-old 50000 deadweight ton Supramax for $7.3 million. The vessel was sold basis drydock due saving the company approximately $1.3 million in total capex spend relating to the statutory maintenance as well as the requisite installation of a ballast water treatment system. Please turn to slide six for a review of our fleet makeup evolution. Inclusive of our recent sale and purchase transactions we now have acquired and sold a total of 34 vessels over the past 3.5 years divesting