NYSE$GNK

Genco Shipping & Trading Limited · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended March 31, 2021 and announced a new comprehensive value strategy.

Genco Shipping & Trading Limited reported a net income of $2.0 million for Q1 2021, with basic and diluted earnings per share of $0.05. The company also announced a new comprehensive value strategy focused on low financial leverage, quarterly dividends, and fleet growth. They have already reduced debt by $48.2 million and agreed to acquire a fuel-efficient Ultramax vessel.

  • Announced a new comprehensive value strategy focused on low financial leverage and returning capital to shareholders.
  • Paid down debt by $48.2 million during the first quarter of 2021.
  • Increased the regular quarterly cash dividend to $0.05 per share for the first quarter of 2021.
  • Recorded net income of $2.0 million for the first quarter of 2021.

Headline financials

Total Revenue

$87.6M

Previous: $98.3M-10.9%
EPS (adj)

$0.06

Previous: -$0.17+135.3%
Capital Expenditures

-$152K

Previous: -$1.04M+85.4%
Free Cash Flow

$1.83M

Previous: -$121M+101.5%
Net Income

$1.99M

Previous: -$120M+101.6%
Operating Income

$6.31M

Previous: -$113M+105.6%
Gross Profit

$68.5M

Previous: $76.5M-10.4%
Cash & Equivalents

$123M

Previous: $134M-8.3%
Total Assets

$1.18B

Previous: $1.38B-14.5%
Stock-Based Comp

$522K

Previous: $481K+8.5%

Revenue & EPS history

Genco · Revenue · Quarterly

$87.6M

Q1 2021-10.9%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Genco anticipates a positive outlook for the drybulk market due to a low orderbook and potential demand catalysts. The company plans to capitalize on the strong market by securing cash flows through time charters and opportunistically purchasing assets to increase its dividend.

Tailwinds

  • Continue to pay down debt through regularly scheduled quarterly repayments and prepayments from a combination of cash flow generation and cash on the balance sheet
  • Opportunistically grow the fleet on a low levered basis utilizing proceeds from previous vessel sales
  • Refinance credit facilities to increase flexibility, improve key terms and lower cash flow breakeven rates
  • Net loan-to-value ratio of 20% based on current market values
  • Cash balance of approximately $75 million, with cash above this level used to pay down debt

Headwinds

  • Declines or sustained weakness in demand in the drybulk shipping industry
  • Continuation of weakness or declines in drybulk shipping rates
  • Changes in the supply of or demand for drybulk products, generally or in particular regions
  • Increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management fee expenses
  • The duration and impact of the COVID-19 novel coronavirus epidemic, which may negatively affect general global and regional economic conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

51%

24 / 47 earnings

Positive

+8.8%

Q4 2023

Best reaction

-22.1%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%+6.1%-3.2%
Q4 2025+3.6%+4.8%-4.2%
Q3 2025+1.0%+3.9%+15.3%
Q1 2025+0.5%+8.2%+0.1%
Q4 2024+0.6%-2.9%-6.7%
Q3 2024+7.1%+8.6%-8.3%
Q2 2024-2.7%-1.3%-7.0%
Q1 2024+1.2%+2.3%-3.1%
Q4 2023+8.8%+8.6%+14.0%
Q3 2023+4.7%+4.7%+9.4%
Q2 2023-3.8%-1.4%-5.2%
Q1 2023-8.3%-1.8%-4.8%
Q4 2022+8.3%+6.7%-14.0%
Q3 2022+3.1%+9.6%-0.3%
Q2 2022-8.7%-9.3%-27.0%
Q1 2022+1.9%-9.6%+15.3%
Q4 2021+1.7%+1.7%+22.0%
Q3 2021+2.7%-0.9%-7.4%
Q2 2021+2.4%-3.6%+14.7%
Q1 2021-0.5%+0.4%-3.3%
Q4 2020+6.7%+3.3%+6.0%
Q3 2020-1.2%+7.0%+21.3%
Q2 2020+7.9%+11.9%-4.1%
Q1 2020-7.8%-7.6%+31.2%
Q4 2019-7.8%+2.0%-23.5%
Q3 2019+4.4%+7.0%-2.0%
Q2 2019-3.2%-8.7%+14.5%
Q1 2019-1.4%-4.8%-12.2%
Q4 2018+2.6%-6.4%-3.5%
Q3 2018-6.5%-8.0%-26.3%
Q2 2018-5.8%-10.5%-15.3%
Q1 2018+4.5%+5.6%+15.5%
Q4 2017+0.1%+4.2%+3.4%
Q3 2017-3.7%-1.3%-1.9%
Q2 2017+6.2%+15.5%+35.2%
Q1 2017+4.3%+0.4%-6.2%
Q4 2016+0.4%-4.7%+7.9%
Q3 2016-6.3%-5.3%+42.6%
Q2 2016-11.8%-12.2%-26.1%
Q1 2016-22.1%
Q4 2015-9.9%
Q3 2015+7.0%
Q2 2015-0.6%
Q1 2015-0.7%
Q4 2014-2.0%
Q3 2014+0.0%
Q2 2014-2.3%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2010
Q1 2011
Q4 2008
Q4 2010
Q3 2010
Q3 2009
Q2 2009
Q2 2010
Q4 2009

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