Eagle Bulk Shipping Inc. Reports Second Quarter 2012 Results

NEW YORK, Aug. 8, 2012 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the second quarter ended June 30, 2012.

For the Second Quarter:
  • Net reported loss of $23.1 million or $1.46 per share (based on a weighted average of 15,880,392 diluted shares outstanding for the quarter), compared to net loss of $1.4 million, or $0.09 per share, for the comparable quarter in 2011.
  • Net revenues of $48.5 million, compared to $76.4 million for the comparable quarter in 2011. Gross time charter and freight revenues of $50.5 million, compared to $81.1 million for the comparable quarter in 2011.
  • EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $10.0 million for the second quarter of 2012, compared with $28.8 million for the second quarter of 2011.
  • Fleet utilization rate of 99.5%.
  • All references to common stock and per share data have been retrospectively adjusted to reflect a 1 for 4 reverse stock split on May 22, 2012.
  • On June 20, 2012, the Company entered into a Fourth Amended and Restated Credit Agreement to its credit facility agreement.

Sophocles N. Zoullas, Chairman and CEO, commented, "Eagle Bulk's second quarter results reflect ongoing instability and weakness in the dry bulk market, with the Baltic Index declining approximately 40% this year alone. Our successfully amended credit agreement represents an important achievement in this environment, as we aligned our balance sheet with the realities of the current market without compromising our competitiveness when the market does recover.

"Going forward, we will continue pursuit of a strategy that maximizes revenue upside through a flexible, opportunistic chartering strategy, a diversified cargo mix that stabilizes earnings, and operational excellence and efficiency."

Amended Credit Agreement

On June 20, 2012, the Company entered into a Fourth Amended and Restated Credit Agreement ("Fourth Amended") to its existing credit facility, dated as of October 19, 2007. Highlights of the agreement include the following:
  • Permanently waives any purported defaults or events of defaults.
  • $1,129,478,741 presently outstanding under the existing revolver will convert into a term loan, with a maturity set to December 31, 2015. Subject to certain conditions, the amendment provides an option to the Company to extend the maturity date an additional 18 months to June 30, 2017.
  • Eagle Bulk will have access to a liquidity facility in the aggregate amount of $20,000,000.
  • The amendment requires no fixed repayments of principal until maturity, and is subject to a quarterly sweep of cash in excess of $20,000,000.
  • All amounts presently outstanding under the existing credit agreement will bear interest at LIBOR plus a cash margin of 3.50% and a payment-in-kind ("PIK") margin of 2.50%. This aggregate margin can be reduced if Company leverage is lowered.
  • Replaces all existing financial covenants and substitutes them with covenants that phase-in over the next three years.
  • Permits within certain parameters for the purchase or sale of vessels and management of third party vessels.
  • Company issued 3,148,584 warrants convertible on a cashless basis into shares of the Company's common stock, par value $0.01 (the "Warrant Shares"), at a strike price of $0.01 per share of common stock. One-third of the warrants are exercisable immediately, the next third of the warrants are exercisable when the price of the Company's common stock reaches $10.00 per share and the last third of the warrants are exercisable when the price of the Company's common stock reaches $12.00 per share. Unexercised warrants will expire on June 20, 2022.

Additional detail about the amendment can be found in the Company's 8-K Disclosure Statement, a copy of which was filed with the Securities and Exchange Commission on June 20, 2012, and is available at www.sec.gov.

Results of Operations for the three-month period ended June 30, 2012 and 2011

For the second quarter of 2012, the Company reported a net loss of $23,106,239 or $1.46 per share, based on a weighted average of 15,880,392 diluted shares outstanding. In the comparable second quarter of 2011, the Company reported net loss of $1,438,278 or $0.09 per share, based on a weighted average of 15,642,830 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross time and voyage charter revenues in the quarter ended June 30, 2012 were $50,537,281, compared with $81,135,090 recorded in the comparable quarter in 2011. The decrease in gross revenues is attributable primarily to lower charter rates and a decrease in voyage charter revenues in the quarter ended June 30, 2012. Gross revenues recorded in the quarter ended June 30, 2012 and 2011, include an amount of $1,205,276 and $1,271,810, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the quarter ended June 30, 2012 and 2011 were $2,000,048 and $4,729,702, respectively. Net revenues during the quarter ended June 30, 2012 and 2011, were $48,537,233 and $76,405,388, respectively.

Total operating expenses for the quarter ended June 30, 2012 were $59,605,359 compared with $66,123,996 recorded in the second quarter of 2011. The Company operated 45 vessels in the second quarter of 2012 compared with 41 vessels in the corresponding quarter in 2011. The decrease in operating expenses was primarily due to a reduction in chartered-in days and lower voyage expenses offset by the increase in operating a larger fleet size which includes increases in vessels crew cost, insurances and vessel depreciation expense. The increase in General and Administrative expenses is primarily attributable to the increase in allowance for bad debts.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased by 65% to $9,969,683 for the second quarter of 2012, compared with $28,804,803 for the second quarter of 2011. (Please see below for a reconciliation of EBITDA to net loss).

Results of Operations for the six-month period ended June 30, 2012 and 2011

For the six months ended June 30, 2012, the Company reported net loss of $40,539,768 or $2.56 per share, based on a weighted average of 15,815,594 diluted shares outstanding. In the comparable period of 2011, the Company reported net loss of $7,248,559 or $0.46 per share, based on a weighted average of 15,641,477 diluted shares outstanding.

The Company's revenues were earned from time and voyage charters. Gross revenues for the six-month period ended June 30, 2012 were $105,360,411, compared with $171,518,078 recorded in the comparable period in 2011. The decrease in gross revenues is attributable to lower time charter rates and a decrease in voyage revenues in the period, offset marginally by operating a larger fleet. Gross revenues recorded in the six-month period ended June 30, 2012 and 2011, include an amount of $2,434,040 and $2,566,329, respectively, relating to the non-cash amortization of fair value below contract value of time charters acquired. Brokerage commissions incurred on revenues earned in the six-month periods ended June 30, 2012 and 2011 were $4,206,778 and $8,419,914, respectively. Net revenues during the six-month period ended June 30, 2012, decreased 38% to $101,153,633 from $163,098,163 in the comparable period in 2011.

Total operating expenses were $119,723,715 in the six-month period ended June 30, 2012 compared to $148,398,858 recorded in the same period of 2011. The decrease in operating expenses was primarily due to a reduction in chartered-in days and lower voyage expenses offset by the increase in operating a larger fleet size which includes increases in vessels crew cost, insurances and vessel depreciation expense. The decrease in General and Administrative expenses is primarily attributable to lower allowance for bad debts being booked in the six-month period ended June 30, 2012 compared with 2011.

EBITDA, adjusted for exceptional items under the terms of the Company's credit agreement, decreased by 55% to $23,783,682 for the six months ended June 30, 2012 from $52,932,372 for the same period in 2011. (Please see below for a reconciliation of EBITDA to net loss).

Liquidity and Capital Resources

Net cash used in operating activities during the six-month period ended June 30, 2012, was $1,463,360, compared with net cash provided by operating activities of $26,445,490 during the corresponding six-month period ended June 30, 2011. The decrease was primarily due to lower rates on charter renewals and from the operation of a larger fleet offset by a reduction in charter hire expenses and related voyages expenses.

Net cash provided by investing activities during the six-month period ended 2012, was $309,866, compared with net cash used in investing activities of $101,725,929 during the corresponding six-month period ended June 30, 2011. Investing activities during the six-month period ended June 30, 2011, related primarily to making progress payments and incurring related vessel construction expenses for the newbuilding vessels.

Net cash used in financing activities during the six-month period ended June 30, 2012 and 2011 was $6,773,199 and $2,710,177, respectively. The increase was primarily due to additional expenses incurred related to the amendment and restatement of the Company's credit agreement.

As of June 30, 2012, our cash balance was $17,148,510, compared to a cash balance of $25,075,203 at December 31, 2011. Also recorded in Restricted Cash is an amount of $291,891, of which $276,056 collateralizes letters of credit relating to our office leases.

Debt consists of the following:
  June 30, 2012 December 31, 2011
Credit Facility   —   $ 1,129,478,741
Term loan 1,129,478,741
Payment-in-kind loan 707,688
Less: Current portion (32,094,006)
Long-term debt   $ 1,130,186,429  $ 1,097,384,735

Disclosure of Non-GAAP Financial Measures

EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is not an item recognized by U.S. GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

Our term loan agreement require us to comply with financial covenants based on debt and interest ratio with extraordinary or exceptional items, interest, taxes, non-cash compensation, depreciation and amortization (Credit Agreement EBITDA). Therefore, we believe that this non-U.S. GAAP measure is important for our investors as it reflects our ability to meet our covenants. The following table is a reconciliation of net loss, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA:

         
  Three Months Ended Six Months Ended
  June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
Net loss  $ (23,106,239)  $ (1,438,278)  $ (40,539,768)  $ (7,248,559)
Interest Expense 12,053,342 11,672,428 23,014,252 23,008,907
Depreciation and Amortization 19,427,957 17,640,372 38,861,314 34,799,216
Amortization of fair value below contract value of time charter acquired (1,205,276) (1,271,810) (2,434,040) (2,566,329)
EBITDA 7,169,784 26,602,712 18,901,758 47,993,235
Adjustments for Exceptional Items:        
Non-cash Compensation Expense (1) 2,799,899 2,202,091 4,881,924 4,939,137
Credit Agreement EBITDA  $ 9,969,683  $ 28,804,803  $ 23,783,682  $ 52,932,372
         
(1) Stock based compensation related to stock options and restricted stock units.
         

Capital Expenditures and Drydocking

Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels which are expected to enhance the revenue earning capabilities and safety of these vessels.

In addition to acquisitions that we may undertake in future periods, the Company's other major capital expenditures include funding the Company's maintenance program of regularly scheduled drydocking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its dry docking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years. Funding of these requirements is anticipated to be met with cash from operations. We anticipate that this process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating days during that period.

Drydocking costs incurred are amortized to expense on a straight-line basis over the period through the date the next drydocking for those vessels are scheduled to occur. One vessel was drydocked in the three months ended June 30, 2012. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:
Quarter Ending Off-hire Days(1) Projected Costs(2)
September 30, 2012 -- --
December 31, 2012 -- --
March 31, 2013 22 $0.60 million
June 30, 2013 22 $0.60 million
     
(1) Actual duration of drydocking will vary based on the condition of the vessel, yard schedules and other factors.
(2) Actual costs will vary based on various factors, including where the drydockings are actually performed.

Summary Consolidated Financial and Other Data:

The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.

         
CONSOLIDATED STATEMENT OF OPERATIONS
     
  Three Months Ended Six Months Ended
  June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
         
Revenues, net of commissions  $48,537,233 $76,405,388 $101,153,633 $163,098,163
         
Voyage expenses  6,888,920 8,125,284 13,890,624 23,946,796
Vessel expenses  23,869,262 21,289,772 46,311,324 40,763,171
Charter hire expenses  11,029,811 606,573 26,954,493
Depreciation and amortization  19,427,957 17,640,372 38,861,314 34,799,216
General and administrative expenses  9,419,220 8,038,757 20,053,880 21,935,182
 Total operating expenses  59,605,359 66,123,996 119,723,715 148,398,858
         
         
Operating income (loss)  (11,068,126) 10,281,392 (18,570,082) 14,699,305
         
Interest expense  12,053,342 11,672,428 23,014,252 23,008,907
Interest income  (8,153) (29,464) (16,191) (87,134)
Other (Income) expense  (7,076) 76,706 (1,028,375) (973,909)
 Total other expense, net  12,038,113 11,719,670 21,969,686 21,947,864
         
Net loss  $(23,106,239) $(1,438,278) $(40,539,768) $(7,248,559)
         
Weighted average shares outstanding* :        
Basic  15,880,392 15,642,830 15,815,594 15,641,477
Diluted  15,880,392 15,642,830 15,815,594 15,641,477
         
Per share amounts:
Basic net loss  $(1.46) $(0.09) $(2.56) $(0.46)
Diluted net loss  $(1.46) $(0.09) $(2.56) $(0.46)
         
*Adjusted to give effect to the 1 for 4 reverse stock split that became effective on May 22, 2012.
Fleet Operating Data        
         
  Three Months Ended Six Months Ended 
  June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
         
Ownership Days 4,095 3,682 8,190 7,230
Chartered-in under operating lease Days -- 629 32 1,658
Available Days 4,081 4,290 8,175 8,847
Operating Days 4,062 4,268 8,103 8,779
Fleet Utilization 99.5% 99.5% 99.1% 99.2%
     
CONSOLIDATED BALANCE SHEETS
     
   June 30, 2012 (unaudited) December 31, 2011
ASSETS:    
Current assets:    
Cash and cash equivalents  $17,148,510 $25,075,203
Accounts receivable, net  10,250,226 13,960,777
Prepaid expenses  5,048,180 3,969,905
Inventories  12,581,899 11,083,331
Investment  227,354 988,196
Fair value above contract value of time charters acquired  557,881 567,315
Fair value of derivative instruments  246,110
 Total current assets  45,814,050 55,890,837
Noncurrent assets:    
Vessels and vessel improvements, at cost, net of accumulated depreciation of $276,929,765 and $239,568,767, respectively  1,752,078,568 1,789,381,046
Other fixed assets, net of accumulated amortization of $420,668 and $324,691, respectively  519,683 605,519
Restricted cash  291,891 670,418
Deferred drydock costs  3,067,188 3,303,363
Deferred financing costs  28,321,603 11,766,779
Fair value above contract value of time charters acquired  2,766,769 3,041,496
Other assets  2,292,075 2,597,270
 Total noncurrent assets  1,789,337,777 1,811,365,891
Total assets $1,835,151,827 $1,867,256,728
     
LIABILITIES & STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $6,629,148 $10,642,831
Accrued interest  3,067,461 2,815,665
Other accrued liabilities  17,652,035 11,822,582
Current portion of long-term debt  32,094,006
Deferred revenue and fair value below contract value of time charters acquired  4,637,875 5,966,698
Unearned charter hire revenue  4,086,738 5,779,928
 Total current liabilities  36,073,257 69,121,710
Noncurrent liabilities:    
Long-term debt  1,130,186,429 1,097,384,735
Deferred revenue and fair value below contract value of time charters acquired  15,386,221 17,088,464
Fair value of derivative instruments  6,223,622 9,486,116
 Total noncurrent liabilities  1,151,796,272 1,123,959,315
Total liabilities 1,187,869,529 1,193,081,025
Commitment and contingencies    
Stockholders' equity:    
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued 
Common stock, $.01 par value, 100,000,000 shares authorized, 15,771,496 shares issued and outstanding*   157,715  157,508
Additional paid‑in capital*  757,090,198 745,945,694
 Retained earnings (net of dividends declared of $262,118,388 as of June 30, 2012 and December 31, 2011, respectively)  (103,014,254) (62,474,486)
Accumulated other comprehensive loss  (6,951,361) (9,453,013)
 Total stockholders' equity  647,282,298 674,175,703
Total liabilities and stockholders' equity $1,835,151,827 $1,867,256,728
     
*Adjusted to give effect to the 1 for 4 reverse stock split that became effective on May 22, 2012.
     
CONSOLIDATED STATEMENTS OF CASH FLOWS
     
  Six Months Ended
  June 30, 2012 June 30, 2011
Cash flows from operating activities:    
Net loss  $(40,539,768) $(7,248,559)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Items included in net loss not affecting cash flows:    
Depreciation  37,456,975 33,055,698
Amortization of deferred drydocking costs  1,404,339 1,743,518
Amortization of deferred financing costs  2,332,293 1,918,410
Amortization of fair value below contract value of time charter acquired  (2,434,040) (2,566,329)
Payment-in-kind interest on debt  707,688
Unrealized gain from forward freight agreements, net  246,110 308,578
Allowance for accounts receivable  5,339,080 6,586,900
Non‑cash compensation expense  4,881,924 4,939,137
Drydocking expenditures  (1,168,164) (1,284,121)
Changes in operating assets and liabilities:    
Accounts receivable  (1,628,529) (11,473,011)
Other assets  305,195 (635,571)
Prepaid expenses  (1,078,275) 931,577
Inventories  (1,498,568) (5,339,055)
Accounts payable  (4,013,683) 2,373,987
Accrued interest  251,796 (2,339,449)
Accrued expenses  (21,678) 4,433,934
Deferred revenue  (312,865) 138,722
Unearned revenue  (1,693,190) 901,124
Net cash (used in) provided by operating activities (1,463,360) 26,445,490
     
 Cash flows from investing activities:    
Vessels and vessel improvements and advances for vessel construction  (58,520) (100,369,716)
Purchase of other fixed assets  (10,141) (198,732)
Changes in restricted cash  378,527 (1,157,481)
Net cash provided by (used in) investing activities 309,866 (101,725,929)
     
Cash flows from financing activities:    
Changes in restricted cash  (1,500,000)
Deferred financing costs  (6,773,199)
Cash used to settle net share equity awards (1,210,177)
Net cash used in financing activities (6,773,199) (2,710,177)
     
Net decrease in cash  (7,926,693) (77,990,616)
Cash at beginning of period  25,075,203 129,121,680
Cash at end of period $17,148,510 $51,131,064
     

The following table represents certain information about our revenue earning charters on our operating fleet as of June 30, 2012:
         
Vessel Year Built Dwt Charter Expiration (1) Daily Charter Hire Rate
         
Avocet (2) 2010 53,462 Jul 2012 Voyage(3)
         
Bittern (2) 2009 57,809 Jul 2012  $11,990(3) 
         
Canary (2) 2009 57,809 Aug 2012 to Nov 2012 $12,000  
         
Cardinal 2004 55,362 Nov 2012 to Feb 2013 Index(4)
         
Condor 2001 50,296  Jul 2012  $7,000(3) 
         
Crane (2) 2010 57,809  Jul 2012  $7,000(3) 
         
Crested Eagle 2009 55,989 Aug 2012 to Oct 2012   $12,000(3) 
         
Crowned Eagle 2008 55,940 Aug 2012 to Oct 2012  $14,000
         
Egret Bulker 2010 57,809 Oct 2012 to Feb 2013 $17,650(5) (with 50%
        profit share over $20,000)
         
Falcon 2001 50,296 Aug 2012  $10,550(3) 
         
Gannet Bulker 2010 57,809 Jan 2013 to May 2013 $17,650(5) (with 50%
        profit share over $20,000)
         
Golden Eagle 2010 55,989 Jul 2012  $7,500
         
Goldeneye 2002 52,421 Oct 2012 to Jan 2013 Index(4)
         
Grebe Bulker 2010 57,809 Feb 2013 to Jun 2013 $17,650(5) (with 50%
        profit share over $20,000)
         
Harrier 2001 50,296 Jul 2012   $6,500(3) 
         
Hawk I 2001 50,296 Jul 2012  Spot(3)
         
Ibis Bulker 2010 57,775 Mar 2013 to Jul 2013 $17,650(5) (with 50%
        profit share over $20,000)
         
Imperial Eagle 2010 55,989 Nov 2012 to Feb 2013 Index(4)
         
Jaeger 2004 52,248 Nov 2012 to Jan 2013 Index(4)
         
Jay(2) 2010 57,802 Jul 2012  $6,750(3) 
         
Kestrel I 2004 50,326 Jul 2012 to Aug 2012  Index(4)
         
 Kingfisher (2) 2010 57,776 Aug 2012 to Nov 2012 $12,500
         
Kite 1997 47,195 Aug 2012 to Nov 2012 $7,250
         
Kittiwake 2002 53,146 Jul 2012 Spot(3)
         
Martin(2) 2010 57,809 Jul 2012  $10,500(3)
         
Merlin 2001 50,296 Jul 2012 to Aug 2012 Voyage(3)
         
Nighthawk(2) 2011 57,809 Aug 2012  $10,000(3)
         
Oriole(2) 2011 57,809 Aug 2012 $12,250(3)
         
Osprey I 2002 50,206 Jul 2012 to Aug 2012  $10,000(3)
         
Owl(2) 2011 50,809 Jul 2012 Voyage(3)
         
Peregrine 2001 50,913 Jul 2012  $7,000(3)
         
Petrel Bulker 2011 57,809 May 2014 to Sep 2014 $17,650(5) (with 50%
        profit share over $20,000)
         
Puffin Bulker 2011 57,809 May 2014 to Sep 2014 $17,650(5) (with 50%
        profit share over $20,000)
         
Redwing 2007 53,411 Aug 2012  $5,000(3)
         
Roadrunner Bulker 2011 57,809 Aug 2014 to Dec 2014 $17,650(5) (with 50%
        profit share over $20,000)
         
Sandpiper Bulker 2011 57,809 Aug 2014 to Dec 2014 $17,650(5) (with 50%
        profit share over $20,000)
         
Shrike 2003 53,343 Dec 2012 to Mar 2013  $11,300(3)
         
Skua 2003 53,350 Aug 2012  $10,500(3)
         
Sparrow 2000 48,225 Jul 2012  $10,000(3)
         
Stellar Eagle 2009 55,989 Mar 2013 to Jun 2013 Index(4)
         
Tern 2003 50,200 Jul 2012 to Oct 2012  $10,000(3)
         
Thrasher (2) 2010 53,360 Jul 2012 to Aug 2012  $10,000(3)
         
Thrush 2011 53,297 Jul 2012 $7,000(3)
         
 Woodstar (2) 2008 53,390 Jul 2012  $8,000(3)
         
Wren (2) 2008 53,349 Jul 2012  $7,000(3)
         
(1) The date range provided represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter. The time charter hire rates presented are gross daily charter rates before brokerage commissions, ranging from 0.625% to 6.25%, to third party ship brokers.
(2) The charter rate does not include any shortfall between the vessels' actual daily earnings and the $17,000 per day for which KLC is responsible. Revenue from KLC will be recognized when collectability is assured. In addition, through December 2015, we are entitled to100% of the profits on earnings between $17,000 to $21,000 per day and a 50% profit share on earnings above $17,000 per day from January 2016 to December 2018. 
(3) Upon conclusion of the previous charter, the vessel will commence a short-term charter for up to six months.
(4) Index, an average of the trailing Baltic Supramax Index.
(5) The charterer has an option to extend the charter by two periods of 11 to 13 months each.

Glossary of Terms:

Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.

Chartered-in under operating lease days: The Company defines chartered-in under operating lease days as the aggregate number of days in a period during which the Company chartered-in vessels.

Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Operating days: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

Fleet utilization : The Company calculates fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at very high utilization rates.

Conference Call Information

As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET on Thursday, August 9th to discuss the results.

To participate in the teleconference, investors and analysts are invited to call 800-706-7748 in the U.S., or 617-614-3473 outside of the U.S., and reference participant code 94659453. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.

A replay will be available following the call until 11:59 PM ET on August 16, 2012. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 55295308.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is a leading global owner of Supramax dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities and Exchange Commission.

Visit our website at www.eagleships.com
CONTACT: Company Contact:         Adir Katzav         Chief Financial Officer         Eagle Bulk Shipping Inc.         Tel. +1 212-785-2500                  Investor Relations / Media:         Jonathan Morgan         Perry Street Communications, New York         Tel. +1 212-741-0014

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX