Pangaea Logistics Solutions Ltd.

Good morning. My name is Raisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangea Logistics first quarter 2023 earnings teleconference. Today's call is being recorded and will be available for replay beginning at 11 a.m. Eastern Standard Time. The recording can be accessed by dialing 800-723-0528 or 402-220-2654. All lines are currently muted. And after the prepared remarks, there will be a live question and answer session. If you would like to ask a question during the Q&A segment, please press star one on your phone. If your question has been answered, you may remove yourself from the queue at any time by pressing star two. We do ask that you please pick up your handset for optimal sound quality. It is now my pleasure to turn the floor over to Noel Ryan with BALM Advisors.

Thank you, operator, and welcome. to the Pangea Logistics Solutions first quarter 2023 results conference call. Leading the call with me today is CEO Mark Filanowski, Chief Financial Officer Gianni Del Signore, and COO Mads Pedersen. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions. And with that, I would like to turn the call over to Mark.

Thank you, Noel, and welcome to those joining us on the call and webcast today. After the market closed yesterday, we issued a release detailing our first quarter results. During a seasonally slower period for the global dry bulk shipping market, where benchmark industry rates declined nearly 60% on a year-over-year basis, Pangea delivered an average TCE rate that was approximately 50% higher than our broader market indices, resulting in another consecutive quarter of profitability. Our TCE earned was $14,372 per day. for the three months ended March 31st, 2023, compared to an average of 26,472 per day for the same period in 2022. Our long-term COAs, specialized fleet, and cargo focus strategy helped us to perform better than index rates in a slow market environment. Just yesterday, Vessel Index published its report on outperformance. And we again are at the top of the five-year historical performance list of dry bulk public companies. Seasonal demand softness combined with extended holiday schedules in the East contributed to challenging market conditions in January and February. Since bottoming in February, market rates recovered materially as the market became more balanced, giving a combination of improved seasonal demand, increasing activity in Asia, and tightness in global shipping capacity. We've seen some easing of congestion with the lifting of COVID restrictions in China. The result was a reset of market rates during the first quarter as vessel capacity expanded in a seasonably weak period. Despite global recessionary concerns, we are not seeing any material deceleration in cargo demand. we are strategically focused on positioning our business to capitalize on the expected growth in global dry bulk volume and favorable rate dynamics over the coming years. During April, market rates averaged more than $13,000 per day, up from $6,200 per day in February. Meanwhile, vessel supply remains highly constrained, with lead times ranging from two to three years, which we expect will keep fleet growth low for the foreseeable future. Notably, asset values remain strong in this market as the demand for echo tonnage in the Ultramax segment has remained high. During the last 12 months, we've generated nearly $100 million in free cash flow, positioning us to reduce net leverage and return capital to shareholders while investing in high-return organic and inorganic growth opportunities. that align with our integrated shipping and logistics strategy. In April, we completed negotiations for the acquisition of a 61,000 deadweight ton dry bulk vessel in the second hand market for 26.6 million cash. Built in 2014, this vessel, to be renamed Bulk Prudence, is expected to be delivered to Pangea in June 2023. representing the 25th owned vessel in our fleet. The Bulk Prudence is our ninth vessel acquisition since 2021, highlighting our continued strategic focus on owning and operating a newer, more efficient fleet, well equipped to support client requirements on an on-demand basis. In May, we entered into definitive agreement to acquire Marine Port Terminal operations in Port Everglades, Fort Lauderdale, and Port of Palm Beach in Florida and in the Port of Baltimore, Maryland from host terminals and all cash transaction. With this acquisition, we will expand our North American terminal network to include the Mid-Atlantic and Southeastern United States while adding dry bulk distribution capabilities within growing commerce centers. Our cargo central strategy leverages our established competency within dry bulk shipping together with logistics requirements of our customers, allowing us to extend our service relationship beyond the ocean-going vessel. As before, Pangea remains committed to a consistent return of capital strategy. During the last two years, we've increased our quarterly cash dividend by more than 100% to 10 cents per share per quarter, representing a total payout of $18 million annually, which further positions us as a compelling yield-centric opportunity. Looking ahead, we continue to anticipate Pangea will generate strong cash flow this year, positioning us to further reward our shareholders, reduce debt outstanding, and invest in our commercial expansion. On a strategic level, we continue to focus on moving closer to our customer while managing an end-to-end supply chain solution that drives long-term margin expansion and profitable growth. As before, we remain an opportunistic acquirer of tuck-in assets that complement our integrated solutions offering. With that, I'll hand it over to Johnny.