Third Quarter
2016 Results
November 2016
2
Safe Harbor
This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions.
These statements are based on Pangaea’s and managements’ current expectations or beliefs and are subject to
uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the
statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and
uncertainties affecting the operation of Pangaea’s business. These risks, uncertainties and contingencies include:
business conditions; weather and natural disasters; changing interpretations of GAAP; outcomes of government reviews;
inquiries and investigations and related litigation; continued compliance with government regulations; legislation or
regulatory environments; requirements or changes adversely affecting the business in which Pangaea is engaged;
fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of logistics
and shipping services; general economic conditions; geopolitical events and regulatory changes; and other factors set
forth in Pangaea’s filings with the Securities and Exchange Commission and the filings of its predecessors. The
information set forth herein should be read in light of such risks. Further, investors should keep in mind that certain of
Pangaea’s financial results are unaudited and do not conform to SEC Regulation S-X and as a result such information
may fluctuate materially depending on many factors. Accordingly, Pangaea’s financial results in any particular period
may not be indicative of future results. Pangaea is not under any obligation to, and expressly disclaims any obligation to,
update or alter its forward-looking statements, whether as a result of new information, future events, changes in
assumptions or otherwise.
3
Third Quarter 2016 Highlights
1 Adjusted EBITDA is a non-GAAP measure and represents income from operations before depreciation, amortization, loss on
impairment and non-recurring items, if applicable. See Reconciliation of Adjusted EBITDA and Adjusted Earnings Per Share.
• Net income attributable to Pangaea Logistics Solutions Ltd. was $6.1 million,
compared to net income of $3.0 million in the third quarter of 2015
• Earnings per common share of $0.17 for 2016 compared to earnings per
common share of $0.08 in the third quarter of 2015
• Adjusted EBITDA1 increased to $11.3 million for 2016, compared with $8.1
million for the third quarter of 2015
• Cash flow from operations was $18.3 million for the nine months ended
September 30, 2016, compared with $17.4 million for the nine months ended
September 30, 2015
• At the end of the third quarter, Pangaea had $28.2 million in cash and cash
equivalents
4
Financial Performance - Trailing Four Quarters
1) Adjusted EBITDA is a non-GAAP measure and represents operating earnings before interest expense, income taxes, depreciation and amortization, and other
non-operating income and/or expense, if any.
2) TCE is defined as total revenues less voyage expenses divided by the number of shipping days, which is consistent with industry standards. TCE rate is a common
shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels
on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels
on time charters generally are expressed in per-day amounts.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Q4-15 Q1-16 Q2-16 Q3-16
Adjusted EBITDA (1)
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Q4-15 Q1-16 Q2-16 Q3-16
TCE (2)
$(6,000,000)
$(4,000,000)
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
Q4-15 Q1-16 Q2-16 Q3-16
Net Income
5
• The Company’s unique ability to limit the impact of weak market rates on its
operations by dynamically adjusting its fleet size. This a function of its
flexible, cargo-focused business model, which uses a mix of owned and
chartered-in vessels.
• Reduction in cost of bunkers consumed on voyages. Bunker prices were on
average 19% lower in the second quarter of 2016 than in the second quarter
of 2015.
• General and administrative costs decreased 25% to $2.9 million from $3.9
million in 2015 as the Company continued its expense management
measures while weakness in the overall shipping market continues.
Drivers of Third Quarter 2016 Performance
6
Defensible Pillars of Profitability
• Execution specialization:
- Material cost savings & enhanced profit through granular operating knowledge & risk
sensitive approach
- Secured & defended by 200+ years of expertise & embedded relationships; key
managers average 20 years in the industry
• Backhaul specialization:
- Generating profit from a cost center
- Secured & defended by reputation, long-term contracts & repeat customers
- Minimal ballast time
• Ice-class specialization:
- Capturing profit from limited supply of tonnage & lower costs
- Secured & defended by expertise & ownership of specialized fleet
- Own & operate a significant portion of the world’s 1A ice-class dry tonnage
• Broader logistics solutions:
- Design & implement loading & discharge efficiencies in critical ports
- Expand markets & improve business terms for customers
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Selected Income Statement Data
2016 2015
(unaudited) (unaudited)
Revenues:
Voyage revenue 65,986,320$ 64,599,552$
Charter revenue 4,797,572 6,588,613
70,783,892 71,188,165
Expenses:
Voyage expense 29,166,651 30,392,418
Charter hire expense 19,655,327 20,601,908
Vessel operating expenses 7,483,507 8,462,370
General and administrative 3,179,287 3,595,398
Depreciation and amortization 3,532,171 3,195,437
(Gain) / Loss on sale of vessels 71,882
Total expenses 63,016,943 66,319,413
Income from operations 7,766,949 4,868,752
Total other expense, net (1,184,912) (2,087,978)
Net income 6,582,037 2,780,774
Income attributable to noncontrolling interests (517,701) 221,895
Net income attributable to Pangaea Logistics Solutions Ltd. 6,064,336$ 3,002,669$
Three months ended June 30,
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Selected Balance Sheet and Cash Flow Data
September 30, 2016 December 31, 2015
(unaudited)
Current Assets
Cash and cash equivalents 28,192,492$ 37,520,240$
Accounts receivable, net 14,811,060 19,617,943
Other current assets 20,990,962 12,173,223
Total current assets 63,994,514 69,311,406
Fixed assets, net 278,821,101 255,145,807
Investment in newbuildings in-process 11,818,000 42,505,783
Total assets 354,633,615$ 366,962,996$
Current liabilities
Accounts payable, accrued expenses and other current liabilities 19,703,744$ 22,156,202$
Related party debt 12,578,635 13,321,419
Current portion long-term debt 18,002,784 19,499,262
Other current liabilities 16,148,130 17,173,620
Total current liabilties 66,433,293 72,150,503
Secured long-term debt, net 112,027,117 129,496,153
Total Pangaea Logistics Solutions Ltd. equity 116,040,258 108,212,525
Non-controlling interests 60,132,947 57,103,815
Total stockholders' equity 176,173,205 165,316,340
Total liabilities and stockholders' equity 354,633,615$ 366,962,996$
Net cash provided by operating activities 9,985,074$ 12,810,782$
Net cash used in investing activities (432,432)$ (40,634,872)$
Net cash provided by financing activities (14,649,474)$ 32,161,158$