Pangaea Logistics Solutions Ltd. Reports Financial Results for the Three Months and Year Ended December 31, 2024

Rhea-AI Summary

Pangaea Logistics Solutions (NASDAQ: PANL) reported its Q4 and full-year 2024 financial results. In Q4, the company achieved net income of $8.4 million ($0.18 per share) and Adjusted EBITDA of $23.2 million, with operating cash flow of $19.3 million.

Key Q4 metrics include TCE rates of $15,942 per day, exceeding industry benchmarks by 48%. Total shipping days increased 17% to 4,800 days, though TCE rates decreased 10% year-over-year. The company completed acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc.

For full-year 2024, Pangaea reported:

• Net income of $28.9 million ($0.63 per share)
• Operating cash flow of $65.7 million
• Adjusted EBITDA of $83.0 million
• TCE rates of $16,485 per day, beating market indices by 24%

As of December 31, 2024, the company held $86.8 million in cash and total debt of $401.8 million. The company paid $18.7 million in dividends during 2024.

Positive

• 18% year-over-year increase in Q4 Adjusted EBITDA to $23.2 million
• 17% increase in shipping days to 4,800 in Q4 2024
• Strategic acquisition of 15 handy-size vessels expanding fleet capabilities
• TCE rates exceeded market benchmarks by 48% in Q4
• Strong cash position of $86.8 million as of December 31, 2024
• Consistent dividend payments totaling $18.7 million in 2024

Negative

• 10% year-over-year decrease in Q4 TCE rates
• Total debt increased to $401.8 million due to vessel acquisition
• Adjusted EBITDA margin declined to 15.6% in 2024 from 16.0% in 2023
• Q1 2025 TCE rates declining to $11,412 per day

Insights

Financial Analyst

Pangaea Logistics Solutions reported solid Q4 2024 results with $7.6 million in adjusted net income ($0.16 per share) and $23.2 million in Adjusted EBITDA, representing 18% year-over-year growth despite industry headwinds. The company's Q4 Adjusted EBITDA margin improved to 16.4% from 14.9% in Q4 2023, demonstrating operational efficiency gains.

The company's differentiated business model continues to deliver premium rates, with TCE rates of $15,942 per day in Q4, outperforming industry benchmarks by an impressive 48%. This outperformance stems from Pangaea's specialized ice-class fleet, long-term contracts of affreightment, and cargo-focused strategy – creating defensible competitive advantages in a volatile market.

The transformative acquisition of fifteen handy-size vessels from Strategic Shipping significantly expands Pangaea's owned fleet from 26 to 41 vessels, enhancing its operational scale while supporting the company's strategic expansion into terminal services and stevedoring operations. With $86.8 million in cash and $401.8 million in total debt, the company maintains adequate liquidity while investing in growth initiatives.

Management's commentary about "pronounced softness" in the dry bulk market and Q1 2025 TCE rates of $11,412 signals continuing market challenges. However, Pangaea's consistent ability to generate premium rates (24% above market benchmarks for full-year 2024) provides a cushion against broader market weakness, while its logistics integration strategy offers diversification beyond pure shipping economics.

Maritime Logistics Expert

Pangaea's vertical integration strategy is bearing fruit as evidenced by their expanding marine logistics footprint. The strategic acquisition of fifteen handy-size vessels isn't merely fleet expansion – it represents a calculated move to enhance the company's port and terminal operations capabilities. Smaller vessels provide flexibility to service secondary ports with draft limitations, precisely where Pangaea is establishing new terminal operations in Texas and Louisiana.

The company's ice-class specialization creates a competitive moat that consistently delivers premium rates. Their 48% outperformance versus Baltic indices in Q4 demonstrates the value of niche market leadership and specialized assets in commodity shipping. While the broader dry bulk market faces rate pressure, Pangaea's specialized capabilities and contractual coverage provide relative insulation.

Operationally, the increase in shipping days by 17% to 4,800 in Q4 reflects strong fleet utilization and commercial management. Their operating model of leveraging owned vessels (fully utilized) supplemented by chartered tonnage (26 additional vessels) provides operational flexibility while maximizing returns on owned assets – a balanced approach that optimizes capital efficiency.

With their expanded fleet of 62 vessels (41 owned plus chartered), Pangaea now has sufficient scale to efficiently service their contract base while opportunistically pursuing spot cargo opportunities. This positions them to weather market volatility while maintaining their established pattern of TCE outperformance. The planned terminal expansion in Tampa (targeted for H2 2025) further enhances their integrated logistics capabilities, creating additional revenue streams less correlated to shipping rate cycles.

NEWPORT, R.I., March 13, 2025 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months and year ended December 31, 2024.

FOURTH QUARTER 2024 RESULTS

• Net income attributable to Pangaea Logistics Solutions Ltd. of $8.4 million, or $0.18 per diluted share
• Adjusted net income attributable to Pangaea Logistics Solutions Ltd. of $7.6 million, or $0.16 per diluted share
• Operating cash flow of $19.3 million
• Adjusted EBITDA of $23.2 million
• Time Charter Equivalent ("TCE") rates earned by Pangaea of $15,942 per day
• Pangaea's TCE rates exceeded the average Baltic Panamax and Supramax indices by 48%
• Completed previously announced acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. ("SSI")

FULL YEAR 2024 RESULTS

• Net income attributable to Pangaea Logistics Solutions Ltd. of $28.9 million, or $0.63 per diluted share
• Adjusted Net Income attributable to Pangaea Logistics Solutions Ltd. of $29.9 million, or $0.65 per diluted share
• Operating cash flow of $65.7 million
• Adjusted EBITDA of $83.0 million
• Time Charter Equivalent ("TCE") rates earned by Pangaea of $16,485 per day
• Pangaea's TCE rates exceeded the average Baltic Panamax and Supramax indices by 24%

For the three months ended December 31, 2024, Pangaea reported non-GAAP adjusted net income of $7.6 million, or $0.16 per diluted share, on total revenue of $147.2 million. Fourth quarter TCE rates decreased 10% on a year-over-year basis, while total shipping days, which include both voyage and time charter days, increased 17% to 4,800 days, when compared to the year-ago period.

The TCE earned was $15,942 per day for the three months ended December 31, 2024, compared to an average of $17,685 per day for the same period in 2023. During the fourth quarter ended December 31, 2024, the Company's average TCE rate exceeded the benchmark average Baltic Panamax and Supramax indices by 48%, supported by Pangaea's long-term contracts of affreightment ("COAs"), specialized fleet, and cargo-focused strategy.

Total Adjusted EBITDA grew by 18% year-over-year to $23.2 million in the fourth quarter of 2024. The Adjusted EBITDA margin improved to 16.4%, up from 14.9% in the same period of the prior year. The increase was primarily driven by a 17% rise in shipping days, partially offset by the impact of lower market rates when compared to the prior year period.

For the full year ended December 31, 2024, Pangaea reported non-GAAP adjusted net income of $29.9 million or $0.65 per diluted share, on total revenues of $536.5 million. Adjusted EBITDA was $83.0 million for the full year 2024, reflecting an adjusted EBITDA margin of 15.6%, compared to 16.0% for the full year 2023. Full year TCE rates increased 4.0% on a year-over-year basis in 2024, while total shipping days increased 4.2% to 17,407 when compared to 2023. The Company's average TCE rate during 2024 exceeded the benchmark average Baltic Panamax and Supramax indices by approximately 24%, supported by Pangaea's specialized fleet of ice-class vessels, long-term COAs, and cargo-focused strategies.

As of December 31, 2024, the Company had $86.8 million in cash and cash equivalents. Total debt, including financing obligations and finance lease liabilities, was $401.8 million, reflecting the acquisition of fifteen handy-size dry bulk vessels from SSI on December 30, 2024. Under the terms of the transaction, the Company issued approximately 18.06 million shares of its common stock to SSI and assumed $100 million of vessel related financing agreements. During the fourth quarter, the Company also purchased the remaining 50% equity ownership of its consolidated subsidiary, Nordic Bulk Partners LLC, for $19.0 million in cash.

The Company paid $18.7 million in total cash dividends during the full-year 2024, including $4.8 million in the fourth quarter, consistent with its strategic focus on a consistent and sustainable return of capital program.

MANAGEMENT COMMENTARY 

"Our fourth quarter performance was a strong finish to a transformational year for Pangaea, one in which our strong base of long-term contracts and premium-rate model supported a greater than 18% year-over-year increase in Adjusted EBITDA, despite pronounced softness in the broader dry bulk market," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions. "Our differentiated cargo-focused strategy and leading market share across global ice-class trades has enabled us to drive continued TCE rate out performance versus the broader market, culminating in significant growth in fourth quarter profitability."

"During the fourth quarter, we successfully completed our previously announced merger with Strategic Shipping's (SSI) fleet of fifteen handy-sized dry bulk vessels," continued Filanowski. "This complementary transaction will allow us to expand our business into the handy-sized segment of the market, while also leveraging these smaller vessels to grow our stevedoring and terminal services offerings. With an owned fleet of 41 vessels, supplemented by our short term chartered-in fleet, we're in a strong position to materially expand our logistics and terminal services across a broader footprint of high-traffic ports, consistent with our strategic focus.  To that end, in 2024, we opened new terminal servicing operations in both Texas and Louisiana, while expanding our scope of services in Tampa, Florida."

"Entering 2025, slowing global demand growth and recent policy actions have contributed to uncertainty within the dry-bulk market," continued Filanowski. "While this uncertainty may have an inflationary impact on TCE rates, it also has the potential to lead to disruptions in the global flow of goods, leading us to remain agile across our trade networks.  First quarter 2025 to-date, we've performed 4,982 shipping days, while generating a TCE rate of $11,412 per day."

"With the added scale afforded by the SSI transaction, Pangaea is uniquely positioned to drive a combination of expanded commercial growth, improved economies of scale and above-market TCE rate realization in the year ahead, while continuing to prioritize selective investments in our fleet, expanded logistics operations in strategic ports, and our stable cash dividend," concluded Filanowski.

STRATEGIC UPDATE

Pangaea remains committed to developing a leading dry bulk logistics and transportation services company of scale, providing its customers with specialized shipping and supply chain and logistics offerings in commodity and niche markets that drive premium returns measured in time charter equivalent per day.

Leverage integrated shipping and logistics model. In addition to operating the largest high ice class dry bulk fleet of Panamax and post-Panamax vessels globally, Pangaea also performs stevedoring services, together with port and terminal operations capabilities. Following the completion of the SSI acquisition, the Company is focused on leveraging its handy sized vessels to complement and expand its terminal services and stevedoring operations. The Company continues to make progress in expanding its terminal operations in the Port of Tampa, which is on track to be complete in the second half of 2025.

Continue to drive strong fleet utilization.  In the fourth quarter, Pangaea's 26 owned vessels were fully utilized and supplemented with an average of 26 chartered-in vessels to support cargo and COA commitments. With the completion of the SSI fleet merger at the end of the fourth quarter, the Company's owned fleet grew to 41 vessels. Pangaea's expanded operating fleet of 62 vessels enables the Company to dynamically meet the evolving needs of its customers while maximizing its owned fleet utilization.

Continue to upgrade fleet, while divesting older, non-core assets. The Company's recent fleet merger with SSI maintains  the average age of the fleet to 10 years and further improves the Company's ability to maximize TCE rates through optimal asset utilization. Going forward, the Company will continue to selectively invest in its fleet with the purpose of maximizing TCE rates, meeting evolving regulatory requirements and supporting client cargo needs on an on-demand basis.

FOURTH QUARTER 2024 CONFERENCE CALL

The Company's management team will host a conference call to review the Company's financial results, discuss recent events and conduct a question-and-answer session on Friday, March 14, 2025 at 8:00 a.m., Eastern Time (ET). Accompanying presentation materials will be available in the Investor Relations section of the Company's website at https://www.pangaeals.com/investors/.

To participate in the live teleconference:

Domestic Live:           1-800-579-2543
International Live:      1-785-424-1789
Conference ID:            PANLQ424

To listen to a replay of the teleconference, which will be available through March 21, 2024:

Domestic Replay:        1-800-723-0532
International Replay:   1-402-220-2655

 

Pangaea Logistics Solutions Ltd. Consolidated Statements of Operations
	Three months ended December 31,				Twelve months ended December 31,
	2024		2023		2024		2023
	(unaudited)		(unaudited)
Revenues:
Voyage revenue	$     137,600,720		$     122,280,728		$      494,106,763		$      468,580,914
Charter revenue	6,588,091		7,078,975		30,326,291		23,715,895
Terminal & stevedore revenue	2,985,966		2,517,214		12,103,192		6,971,025
Total revenue	147,174,777		131,876,917		536,536,246		499,267,834
Expenses:
Voyage expense	67,673,501		57,085,198		237,478,669		227,434,670
Charter hire expense	34,424,625		33,850,149		130,763,801		111,033,537
Vessel operating expenses	14,253,734		14,713,363		55,543,547		55,783,562
Terminal & stevedore expenses	1,974,466		1,916,707		9,299,425		5,809,025
General and administrative	6,276,913		5,665,924		24,626,469		22,780,937
Depreciation and amortization	7,766,490		7,524,045		30,375,721		30,070,395
Loss on sale of vessels	—		566,315		—		1,738,511
Total expenses	132,369,729		121,321,701		488,087,632		454,650,637
Income from operations	14,805,048		10,555,216		48,448,614		44,617,197
Other (expense) income:
Interest expense	(4,707,570)		(4,300,627)		(17,073,184)		(17,025,547)
Interest income	588,268		704,220		3,022,593		3,572,134
Loss (income) attributable to Non-controlling interest recorded as long-term liability interest expense	(2,682,192)		565,648		(3,103,018)		(462,150)
Unrealized gain (loss) on derivative instruments	851,346		(5,685,406)		(953,042)		(2,925,347)
Other income	198,337		338,849		1,427,530		761,485
Total other expense, net	(5,751,811)		(8,377,316)		(16,679,121)		(16,079,425)
Net income	9,053,237		2,177,900		31,769,493		28,537,772
Income attributable to noncontrolling interests	(617,845)		(1,041,698)		(2,866,110)		(2,214,472)
Net income  attributable to Pangaea Logistics Solutions Ltd.	$         8,435,392		$         1,136,202		$        28,903,383		$        26,323,300
Earnings per common share:
Basic	$                   0.18		$                   0.03		$                    0.64		$                    0.59
Diluted	$                   0.18		$                   0.03		$                    0.63		$                    0.58
Weighted average shares used to compute earnings per common share
Basic	45,792,112		44,815,282		45,391,855		44,773,899
Diluted	46,527,775		45,392,225		46,046,044		45,475,453

 

Pangaea Logistics Solutions Ltd. Consolidated Balance Sheets
	December 31, 2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents	$       86,805,470		$       99,037,866
Accounts receivable (net of allowance of $5,492,901 and $5,657,837 at December 31, 2024 and 2023, respectively)	42,370,830		47,891,501
Inventories	32,848,241		16,556,266
Advance hire, prepaid expenses and other current assets	29,969,352		28,340,246
Total current assets	191,993,893		191,825,879
Fixed assets, at cost, net of accumulated depreciation of $151,951,990 and $127,015,253, at December 31, 2024 and 2023, respectively	707,826,328		474,265,171
Finance lease right of use assets, at cost, net of accumulated depreciation of $10,697,881 and $10,539,384 at December 31, 2024 and 2023, respectively	28,771,531		30,393,823
Goodwill	3,104,800		3,104,800
Other Non-current Assets	4,760,529		5,590,295
Total assets	$     936,457,081		$     705,179,968
Liabilities and stockholders' equity
Current liabilities
Accounts payable, accrued expenses and other current liabilities	$       46,581,567		$       34,346,202
Related party payable	1,181,015		1,490,060
Deferred revenue	15,447,488		15,629,886
Current portion of long-term debt	16,576,195		30,751,726
Current portion of financing obligations	25,267,105		18,980,512
Current portion of finance lease liabilities	2,843,750		2,989,612
Dividends payable	1,210,991		1,146,321
Total current liabilities	109,108,111		105,334,319
Secured long-term debt, net	112,720,545		68,446,309
Financing Obligations, net	229,529,792		130,037,711
Finance lease liabilities, net	10,434,298		13,229,156
Long-term liabilities - other	—		17,936,540
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or outstanding	—		—
Common stock, $0.0001 par value, 100,000,000 shares authorized, 64,961,433 and 46,466,622 shares issued and outstanding at December 31, 2024 and 2023, respectively	6,498		4,648
Additional paid-in capital	258,659,972		164,854,546
Retained Earnings	169,155,149		159,026,799
Total Pangaea Logistics Solutions Ltd. equity	427,821,619		323,885,993
Non-controlling interests	46,842,716		46,309,940
Total stockholders' equity	474,664,335		370,195,933
Total liabilities and stockholders' equity	$     936,457,081		$     705,179,968

 

Pangaea Logistics Solutions Ltd. Consolidated Statements of Cash Flows
	Years ended December 31,
	2024		2024
Operating activities
Net income	$          31,769,493		$          28,537,772
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization expense	30,375,721		30,070,395
Amortization of deferred financing costs	1,033,735		946,593
Amortization of prepaid rent	121,865		121,532
Unrealized loss on derivative instruments	953,042		2,925,347
Income from equity method investee	(1,709,593)		(684,470)
Earnings attributable to non-controlling interest recorded as interest expense	3,103,018		462,150
Provision for doubtful accounts	1,835,064		2,938,879
Loss on sales of vessels	—		1,738,511
Drydocking costs	(6,202,093)		(4,154,283)
Share-based compensation	2,788,190		2,087,807
Change in operating assets and liabilities:
Accounts receivable	3,685,607		(14,075,231)
Inventories	(11,030,458)		12,548,170
Advance hire, prepaid expenses and other current assets	(2,688,870)		(342,776)
Accounts payable, accrued expenses, other current liabilities and related party payable	11,839,070		(4,079,047)
Deferred revenue	(182,398)		(5,254,072)
Net cash provided by operating activities	65,691,393		53,787,277
Investing activities
Purchase of vessels and vessel improvements	(69,264,985)		(27,264,044)
Proceeds from sale of vessels	—		17,271,489
Acquisitions, net of cash acquired	—		(7,200,000)
Purchase of equipment and internal use software	(167,481)		—
Contributions to non-consolidated subsidiaries	(171,699)		(427,270)
Dividends received from equity method investments	1,910,000		1,637,500
Net cash used in  investing activities	(67,694,165)		(15,982,325)
Financing activities
Proceeds from long-term debt	64,150,000		—
Payments of financing and issuance costs	(2,043,785)		—
Payments of long-term debt	(33,082,460)		(15,782,528)
Proceeds from financing obligations	25,000,000		—
Payments on financing obligations	(19,180,510)		(11,295,522)
Payments of finance leases	(2,989,613)		(8,942,609)
Dividends paid to non-controlling interests	(2,333,334)		(10,400,000)
Common stock accrued dividends paid	(18,710,364)		(18,103,750)
Cash paid for incentive compensation shares relinquished	—		(127,283)
Payments to non-controlling interest recorded as long-term liability	(21,039,558)		(2,500,000)
Net cash used in financing activities	(10,229,624)		(67,151,692)
Net (decrease) increase in cash and cash equivalents	(12,232,396)		(29,346,740)
Cash and cash equivalents at beginning of period	99,037,866		128,384,606
Cash and cash equivalents at end of period	$          86,805,470		$          99,037,866
Supplemental cash flow items:
Cash paid for interest	$          17,983,252		$          18,850,078
Acquisition of Strategic Shipping Inc. through issuance of 18,059,342 shares of common stock, with a value of $91,019,086, as non-cash consideration.	$          91,019,086		$                        —
Fair value of loans and lease liabilities (ASC 842) assumed	$        100,049,292		$                        —

 

Pangaea Logistics Solutions Ltd. Reconciliation of Non-GAAP Measures (unaudited)
	For the three months ended				For the twelve months ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Net Transportation and Service Revenue
Gross Profit	$   21,156,847		$   16,877,815		$    73,184,997		$   69,246,559
Add:
Transportation and service depreciation and amortization	7,691,604		7,433,685		30,265,807		29,960,481
Net transportation and service revenue	$   28,848,451		$   24,311,500		$ 103,450,804		$   99,207,040
Adjusted EBITDA
Net Income	$     9,053,237		$     2,177,900		$    31,769,493		$   28,537,772
Interest expense, net	4,119,302		3,596,407		14,050,591		13,453,413
Income (loss) attributable to Non-controlling interest recorded as long-term liability interest expense	2,682,192		(565,648)		3,103,018		462,150
Depreciation and amortization	7,766,490		7,524,045		30,375,721		30,070,395
EBITDA	23,621,221		12,732,704		79,298,823		72,523,730
Non-GAAP Adjustments:
Loss on sale of vessels	—		566,315		—		1,738,511
Share-based compensation	475,005		694,293		2,788,190		2,087,807
Unrealized (gain) loss on derivative instruments, net	(851,346)		5,685,406		953,042		2,925,347
Other non-recurring items	—		3,195		—		448,373
Adjusted EBITDA	$   23,244,880		$   19,681,913		$    83,040,055		$   79,723,768
Earnings Per Common Share
Net income attributable to Pangaea Logistics Solutions Ltd.	$     8,435,392		$     1,136,202		$    28,903,383		$   26,323,300
Weighted average number of common shares - basic	45,792,112		44,815,282		45,391,855		44,773,899
Weighted average number of common shares - diluted	46,527,775		45,392,225		46,046,044		45,475,453
Earnings per common share - basic	$               0.18		$               0.03		$                0.64		$               0.59
Earnings per common share - diluted	$               0.18		$               0.03		$                0.63		$               0.58
Adjusted EPS
Net income  attributable to Pangaea Logistics Solutions Ltd.	$     8,435,392		$     1,136,202		$    28,903,383		$   26,323,300
Non-GAAP
Add:
Loss on sale of vessels	—		566,315		—		1,738,511
Unrealized (gain) loss on derivative instruments, net	(851,346)		5,685,406		953,042		2,925,347
Other non-recurring items	—		3,195		—		448,373
Non-GAAP adjusted net income attributable to Pangaea Logistics Solutions Ltd.	$     7,584,046		$     7,391,118		$    29,856,425		$   31,435,531
Weighted average number of common shares - basic	45,792,112		44,815,282		45,391,855		44,773,899
Weighted average number of common shares - diluted	46,527,775		45,392,225		46,046,044		45,475,453
Adjusted EPS - basic	$               0.17		$               0.16		$                0.66		$               0.70
Adjusted EPS - diluted	$               0.16		$               0.16		$                0.65		$               0.69

INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.  To supplement our consolidated financial statements prepared and presented in accordance with GAAP, this earnings release discusses non-GAAP financial measures, including non-GAAP  net revenue, non-GAAP adjusted EBITDA and non-GAAP Adjusted EPS. These are considered non-GAAP financial measures as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission.  Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use non-GAAP financial measures for internal financial and operational decision making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core business.  Our management believes that non-GAAP financial measures provide meaningful supplemental information regarding the performance of our core business by excluding charges that are not incurred in the normal course of business. Non-GAAP financial measures also facilitate management's internal planning and comparisons to our historical performance and liquidity.  We believe certain non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and are used by our institutional investors and the analyst community to help them analyze the performance and operational results of our core business.

Gross Profit. Gross profit represents total revenue less net transportation and service revenue and less vessel depreciation and amortization.

Net transportation and service revenue. Net transportation and service revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses. Net transportation and service revenue is included because it is used by management and certain investors to measure performance by comparison to other logistic service providers. Net transportation and service revenue is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company's operating performance required by U.S. GAAP. Pangaea's definition of net transportation and service revenue used here may not be comparable to an operating measure used by other companies.

Adjusted EBITDA and adjusted EPS. Adjusted EBITDA represents net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, income taxes, depreciation and amortization, loss on sale and leaseback of vessels, share-based compensation and other non-operating income and/or expense, if any. Earnings per share represents net income divided by the weighted average number of common shares outstanding. Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on sale of vessel, loss on sale and leaseback of vessel, loss on impairment of vessel, unrealized gains and losses on derivative instruments, and certain non-recurring charges, divided by the weighted average number of shares of common stock.

There are limitations related to the use of net revenue versus income from operations, adjusted EBITDA versus income from operations, and adjusted EPS versus EPS calculated in accordance with GAAP.  In particular, Pangaea's definition of adjusted EBITDA used here are not comparable to EBITDA.

The table set forth above provides a reconciliation of the non-GAAP financial measures presented to the most directly comparable financial measures prepared in accordance with GAAP.

About Pangaea Logistics Solutions Ltd.

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) and its subsidiaries (collectively, "Pangaea" or the "Company") provides seaborne drybulk logistics and transportation services as well as terminal and stevedoring services. Pangaea utilizes its logistics expertise to service a broad base of industrial customers who require the transportation of a wide variety of drybulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company addresses the logistics needs of its customers by undertaking a comprehensive set of services and activities, including cargo loading, cargo discharge, port and terminal operations, vessel chartering, voyage planning, and vessel technical management. Learn more at www.pangaeals.com.

Investor Relations Contacts

Gianni Del Signore		Noel Ryan or Stefan Neely
Chief Financial Officer
401-846-7790
Investors@pangaeals.com		PANL@val-adv.com

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise, except as required by law.  Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. 

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SOURCE Pangaea Logistics Solutions LTD

FAQ

What was Pangaea Logistics Solutions' (PANL) Q4 2024 earnings per share?

PANL reported Q4 2024 earnings of $0.18 per diluted share, with adjusted earnings of $0.16 per share.

How many vessels did PANL acquire from Strategic Shipping Inc. in Q4 2024?

PANL acquired fifteen handy-size dry bulk vessels from Strategic Shipping Inc., expanding their owned fleet to 41 vessels.

What was PANL's Time Charter Equivalent (TCE) rate performance in Q4 2024?

PANL achieved TCE rates of $15,942 per day in Q4 2024, exceeding the Baltic Panamax and Supramax indices by 48%.

How much did PANL pay in dividends during 2024?

PANL paid $18.7 million in total cash dividends during 2024, including $4.8 million in Q4.

What is PANL's current fleet size after the Strategic Shipping acquisition?

PANL now operates 62 vessels total, including 41 owned vessels following the Strategic Shipping acquisition.