Stock Review Report: Pangaea Logistics Solutions, Ltd. (NASDAQ-PANL)

On 23 May Thursday, Pangaea Logistics Solutions, Ltd. (NASDAQ-PANL) has shown upward/downward move of -0.84% and ended the last trade at $3.5400. The trading volume was recorded to 44,997 shares as compared to average traded volume of 29,564 shares.

Pangaea Logistics Solutions Ltd. (PANL) recently stated its results for the three months and year ended December 31, 2018.

2018 Highlights:

  • Net income attributable to Pangaea Logistics Solutions Ltd. of $17.8Mas contrast to $7.8M for the year ended December 31, 2017.
  • Earnings per share of $0.42and adjusted EPS (3) of $0.53 for 2018 contrast to $0.20and adjusted EPS of $0.38 for 2017.
  • Income from operations of $36.1M, up from $16.0Mfor 2017.
  • Cash flow from operations of $40.1M, contrast to $29.2Mfor the previous year.
  • Pangaea’s TCE rates raised 20% to $14,019in 2018 from $11,649 in 2017.
  • Adjusted EBITDA of $54.6Mfor the year ended December 31, 2018 versus $40.9M for the same period in 2017.
  • At December 31, 2018, Pangaea had $56.1Min cash, restricted cash and cash equivalents.

4th Quarter 2018 Highlights:

  • Income from operations raised 15% to $7.7M, up from $6.7Min the same period of 2017.
  • Pangaea’s TCE rates raised 15% to $14,360per day for the three months ended December 31, 2018 contrast to $12,510 for the three months ended December 31, 2017.
  • Adjusted EBITDA of $12.2Mfor the fourth quarter of 2018 versus $10.7M for the same period in 2017.
  • Net revenue was $16.4Min the three months ended December 31, 2018 as contrast to $14.4M in the comparable period.

Results for the three months and year ended December 31, 2018:

For the year ended December 31, 2018, the Company stated net income of $17.8Mor $0.42 per ordinary share contrast to net income of $7.8M, or $0.20 per ordinary share for the previous year.  Income from operations was up 125% for the year ended December 31, 2018, to $36.1M from $16.0M for the year ended December 31, 2017.

The Baltic Dry Index (“BDI”), a measure of dry bulk market performance, averaged 1,345 for 2018, up from an average of 1,137 for 2017. The Company’s average TCE rates raised 20% in 2018 over the average for 2017, and exceeded the published market rates by an average of 25% over the two year period.

The fourth quarter saw TCE rate raises contrast to both the comparable period of 2017 and the three months ended September 30, 2018.  Net income for the quarter ending December 31, 2018 was $(0.6)M or $(0.01) per share and adjusted EPS(3) of $0.09per share.  This was largely driven by an unrealized loss resulting from marking open derivative instruments to market totaling $4.3M for the three months ended December 31, 2018 following a dramatic decline at the end of the quarter before recovering during the first quarter of 2019.  The Company monitors the market volatility associated with bunker prices and its impact on the operating income of long-term contracts; and seeks to reduce the risk of such volatility through a hedging program.

The P/E ratio was recorded at 8.53.The volatility in the previous week has experienced by 3.66% and observed of 5.02% in the previous month.57.80% ownership is held by institutional investors while insiders hold ownership of 3.00%. Quick ratio for most recent quarter was 1.40 while current ratio for time period was 1.40.

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