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Paragon Shipping Q1 gross charter down to $10.7 million

Staff writer |
Paragon Shipping announced its results for the first quarter ended March 31, 2015. Gross charter revenue was $10.7 million, compared to $14.2 million for Q1 2014.




The company reported a net loss of $8.9 million, or $0.36 per basic and diluted share, for the first quarter of 2015, calculated based on a weighted average number of basic and diluted shares outstanding for the period of 24,460,642 and reflecting the impact of the non-cash items discussed below.

For the first quarter of 2014, the company reported a net loss of $25.9 million, or $1.24 per basic and diluted share, calculated based on a weighted average number of basic and diluted shares of 20,560,102.

Excluding all non-cash items described below, the adjusted net loss for the first quarter of 2015 was $8.8 million, or $0.35 per basic and diluted share, compared to adjusted net loss of $6 million, or $0.29 per basic and diluted share, for the first quarter of 2014.

EBITDA for the first quarter of 2015 was negative $1.6 million, compared to negative $19.1 million for the first quarter of 2014. EBITDA for the first quarter of 2015 was calculated by adding the net loss of $8.9 million to net interest expense, including interest expense from interest rate swaps, and depreciation that in the aggregate amounted to $7.3 million.

Adjusted EBITDA, excluding all non-cash items, was negative $1.4 million for the first quarter of 2015, compared to positive $0.3 million for the first quarter of 2014.

The company operated an average of 16 vessels during the first quarter of 2015, earning an average TCE rate of $4,801 per day, compared to an average of 13.9 vessels during the first quarter of 2014, earning an average TCE rate of $8,557 per day.

Adjusted total vessel operating expenses, which included vessel operating expenses, management fees, general and administrative expenses and dry-docking costs, and excluded share-based compensation, were $8.5 million for the first quarter of 2015, compared to $9.7 million for the first quarter of 2014.

On a daily basis, adjusted total vessel operating expenses for the first quarter of 2015 were approximately $5,907 per vessel per day, or 23.5% lower than the adjusted total vessel operating expenses of $7,717 per vessel per day for the first quarter of 2014.

The reduction in the average daily adjusted total vessel operating expenses is the result of the company’s cost control efficiency and the economies of scale of having a larger fleet, as well as of a favorable impact of the Euro / U.S. dollar exchange rate fluctuations.

As of March 31, 2015, the company owned approximately 11.0% of the outstanding common stock of Box Ships Inc. (NYSE:TEU) (“Box Ships”), a former wholly-owned subsidiary of the company which completed its initial public offering in April 2011.

The investment in Box Ships is accounted for under the equity method and is separately reflected on the company’s unaudited condensed consolidated balance sheets. For the first quarter of 2015, the company recorded a gain of $0.2 million, compared to a loss of $0.3 million income for the first quarter of 2014.

In the second quarter of 2015, the company proceeded with the sale of the total 3,437,500 shares of Box Ships at an average sale price of $0.8542 per share. The proceeds from the sale of such shares amounted to $2.9 million.


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