NEWPORT, R.I., May 9, 2024 /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 ended March 31, 2024. FIRST QUARTER 2024 RESULTS Net income attributable to Pangaea of $11.7 million, or $0.25 per diluted share Adjusted net income attributable to Pangaea of $6.6 million, or $0.14 per diluted share       Operating cash flow of $9.0 million Adjusted EBITDA of $19.9 million Time Charter Equivalent ("TCE") rates earned by Pangaea of $17,697 per day Pangaea's TCE rates exceeded the average Baltic Panamax and Supramax indices by 29% Ratio of net debt to trailing twelve-month Adjusted EBITDA of 2.0x Announced the acquisition of two 58,000 dwt bulk vessels for $56.6 million in May 2024 For the first quarter ended March 31, 2024, Pangaea reported non-GAAP adjusted net income of $6.6 million, or $0.14 per diluted share, on total revenue of $104.7 million. First quarter TCE rates increased 23% on a year-over-year basis, while total shipping days, which include both voyage and time charter days, declined 7% to 3,685 days, when compared to the year-ago period. The TCE earned was $17,697 per day for the three months ended March 31, 2024, compared to an average of $14,372 per day for the same period in 2023. During the  first quarter ended March 31, 2024, the Company's average TCE rate exceeded the benchmark average Baltic Panamax and Supramax indices by 29%, supported by Pangaea's long-term contracts of affreightment ("COAs"), specialized fleet, and cargo-focused strategy. Total Adjusted EBITDA increased by 23% to $19.9 million in the first quarter due to higher earned TCE rates and lower vessel operating expenses, which more than offset lower shipping days compared to the prior year period. Total Adjusted EBITDA margin was 19.0% during the first quarter of 2024, compared to 14.3% during the prior year period, driven by a 23% year-over-year increase in the earned TCE rates. The increase in earned TCE was driven by higher market rates and lower per-day voyage expenses, partially offset by an increase in charter hire expenses per chartered-in day. As of March 31, 2024, the Company had $95.9 million in cash and cash equivalents. Total debt, including lease finance obligations was $260.8 million. At the end of the first quarter of 2024, the ratio of net debt to trailing twelve-month adjusted EBITDA was 2.0x, versus 1.3x in the prior year period. During the three months ended March 31, 2024, the Company repaid $3.4 million of long-term debt, $3.7 million of finance leases, and paid $4.9 million of cash dividends. On May 7, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on June 13, 2024, to all shareholders of record as of May 30, 2024. MANAGEMENT COMMENTARY "Our flexible, cargo-focused business model continued to drive premium earned TCE rates during the first quarter, positioning us to achieve improved operating leverage and year-over-year growth in profitability," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions. "While the first quarter is generally a seasonally softer period for dry bulk activity, our first quarter results benefited from elevated long-haul voyage demand across our ice-class fleet, together with a solid base of premium long-term COAs. As market rates have increased in recent months, we've added to our cargo commitments to fully utilize our owned fleet and we have chartered-in more vessels, positioning us to optimize our TCE performance." "Global demand for dry bulk remains strong and the supply of vessels remains constrained, giving us confidence in both the near and longer-term outlooks for our business," continued Filanowski. "While the current geopolitical environment has resulted in an increase in ton-mile demand within certain shipping channels, we're seeing solid demand within our key bulk trades given rising infrastructure investment and project activity across North America. With a limited number of newbuild vessels coming into service over the coming years, dry bulk capacity is expected to become increasingly constrained.  We believe these capacity constraints should be supportive of structurally higher TCE rates in 2024 and beyond." "Amid the supportive backdrop for dry bulk demand, we remain committed to a returns-focused approach to capital allocation that supports long-term value creation," continued Filanowski. "In 2024, our capital deployment priorities are on the build-out of our on-shore logistics business, together continued investment in our fleet. To that end, we recently executed a long-term lease agreement in the Port of Tampa, Florida to handle dry bulk commodities that are complementary to those carried on our fleet vessels. This year, we will also continue to refresh and expand our owned fleet with newer, more efficient vessels that support the unique requirements of our customers, while continuing to opportunistically divest of older vessels, consistent with our long-term strategy." "Market conditions have remained strong into the second quarter. Through today we've booked over 2,890 shipping days at an average TCE rate of $16,300 per day," continued Filanowski. "We've built a durable model, one that consistently drives premium rates above broader market indices throughout the cycle, while delivering sustained profitability that supports a robust cash dividend. We look forward to continuing to scale our platform in the years ahead as we build market-leading positions across our core trades." 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, which 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 acquisition of marine port terminal operations in Port Everglades/Ft. Lauderdale, Port of Palm Beach, Florida, and Port of Baltimore, Maryland in June 2023, the company has been actively working to expand its onshore relationships with new and existing customers. During the first quarter, the Company began investing in the expansion of our logistics business in the Port of Tampa, Florida through strategic joint operations partnerships and a land lease commitment. The Company has already begun limited operations in Tampa through leased port space but intends to leverage the investment of its joint venture partnership to further grow the port and logistics business that it acquired last year. Continue to drive strong fleet utilization.  In the first quarter, Pangaea's 24 owned vessels were fully utilized and supplemented with an average of 17 chartered-in vessels to support cargo and COA commitments. Going forward, the Company will continue to opportunistically evaluate the composition of its fleet in order to meet the growing needs of new and existing customers. Continue to upgrade fleet, while divesting older, non-core assets.  In May 2024, the Company announced that it had entered into two memoranda agreements for the acquisition of two 2016 built 58,000 dwt dry bulk vessels for a combined purchase price of $56.6 million. The Company expects to take delivery of these vessels in the third quarter of 2024. Going forward, the Company intends to opportunistically manage its fleet with the purpose of maximizing TCE rates, while continuing to support client requirements on an on-demand basis. Going forward, the Company intends to opportunistically manage its fleet with the purpose of maximizing TCE rates, while continuing to support client requirements on an on-demand basis. FIRST QUARTER 2024 CONFERENCE CALL The Company's management team will host a conference call to discuss the Company's financial results on Friday, May 10, 2024 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: 1-888-632-3384  International Live:  1-785-424-1794 Conference ID: PANLQ124  To listen to a replay of the teleconference, which will be available through May 17, 2024: Domestic Replay: 1-877-856-8964 International Replay: 1-402-220-1608     Pangaea Logistics Solutions Ltd.Consolidated Statements of Operations(unaudited) Three Months Ended March 31, 2024 2023 Revenues: Voyage revenue $        87,290,563 $     107,950,123 Charter revenue 15,031,027 5,748,952 Terminal & Stevedore Revenue 2,426,963 — Total revenue 104,748,553 113,699,075 Expenses: Voyage expense 37,114,664 56,814,631 Charter hire expense 27,142,850 22,590,840 Vessel operating expense 12,669,257 13,606,815    Terminal & Stevedore Expenses 2,079,187 — General and administrative 7,278,003 5,691,733 Depreciation and amortization 7,436,473 7,326,860 Loss on sale of vessel — 1,172,196 Total expenses 93,720,434 107,203,075 Income  from operations 11,028,119 6,496,000 Other  income (expense): Interest expense (3,850,730) (4,250,514) Interest income 875,084 1,049,846 (Income) loss attributable to Non-controlling interest recorded as long-term liability interest expense (815,102) 144,736 Unrealized gain (loss) on derivative instruments, net 5,084,339 (423,569) Other income 343,924 386,413 Total other income (expense), net 1,637,515 (3,093,088)