Pangaea Logistics Solutions Ltd. Reports Financial Results for the Three Months and Year Ended December 31, 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 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: 1-800-579-2543International Live: 1-785-424-1789Conference ID: PANLQ424 To listen to a replay of the teleconference, which will be available through March 21, 2024: Domestic Replay: 1-800-723-0532International 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-controllinginterest recorded as long-term liability interestexpense (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 LogisticsSolutions 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 computeearnings 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 PangaeaLogistics 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 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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Pangaea Logistics Solutions Ltd. Reports Financial Results for the Three Months and Year Ended December 31, 2024

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