Ahoy There!
Today we are having a look at some of the numbers from Eagle Bulk Shipping
Company (Nasdaq:EGLE) . The company still has not reported on its
earnings from the last quarter in 2011, and Boomer James thought they might be having trouble with
calculating the current market value of their fleet. He volunteers the following quick
analogy.
The last time Eagle reported on the fleet valuation they list vessels and vessel improvements, at cost, net of accumulated depreciation $1,762,282,000. If we calculate the value using today’s resale values we see a much different picture.
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r/s value
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implied
fleet value
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Vessels
avail for prompt resale
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3
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$27.5M
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$ 82.5M
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Vessels
avail under 5 yrs old
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25
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$22.5M
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$562.5M
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Vessels
avail under 10 yrs old
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8
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$16.5M
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$132.0M
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Vessels
avail under 15 yrs old
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8
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$12.5M
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$100.0M
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Approximate
fleet current market value
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$877.0M
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Listed
value in SEC filings
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$1,762.2M
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The big difference is fleet value being overstated by around 885 Million Dollars, a little more than twice what it is actually worth. Put an accurate number in the balance sheet and you see why they do not.
The folks at EGLE are not alone in hoping you do not make this observation.
Good Fortunes
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