Eagle Bulk Shipping Inc. (EGLE) saw its loss narrow to $19.36 million, or $0.52 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $20.38 million, or $10.83 a share.
Revenue during the quarter grew 22.87 percent to $35.79 million from $29.13 million in the previous year period. Operating margin for the quarter stood at negative 32.76 percent as compared to a negative 58.39 percent for the previous year period.
Operating loss for the quarter was $11.72 million, compared with an operating loss of $17.01 million in the previous year period.
Gary Vogel, Eagle Bulk’s CEO, commented, "Amid tentative signs of a recovery in charter rates, Eagle Bulk’s third quarter results reflect continued progress in building out our Owner-Operator model. This is evident across several key metrics, including a notable increase in voyage business and chartered-in days both of which contributed to a net revenue increase despite operating four fewer vessels compared to the same period a year ago. At the same time, we achieved tangible cost savings through the continued development of our in-house technical management. We also continued to develop our organization by adding top-tier management in key positions, highlighted by the addition of Frank De Costanzo as Chief Financial Officer."
Operating cash flow remains negative
Eagle Bulk Shipping Inc. has spent $40.09 million cash to meet operating activities during the nine month period as against cash outgo of $29.81 million in the last year period.
Cash flow from investing activities was $12.41 million for the nine month period, up 28.99 percent or $2.79 million, when compared with the last year period.
Cash flow from financing activities was $101.35 million for the nine month period, up 1,744.23 percent or $95.86 million, when compared with the last year period.
Cash and cash equivalents stood at $98.57 million as on Sep. 30, 2016, up 289.86 percent or $73.29 million from $25.28 million on Sep. 30, 2015.
Working capital increases sharply
Eagle Bulk Shipping Inc. has recorded an increase in the working capital over the last year. It stood at $91.79 million as at Sep. 30, 2016, up 979.29 percent or $83.29 million from $8.50 million on Sep. 30, 2015. Current ratio was at 4.99 as on Sep. 30, 2016, up from 1.23 on Sep. 30, 2015.
Days sales outstanding went down to 23 days for the quarter compared with 36 days for the same period last year.
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