Good morning. My name is Jamie, and I will be your conference operator today. I would like to welcome everyone to the Pangaea Logistics Solutions Third Quarter 2025 Earnings Teleconference. This call is being recorded and will be available for replay starting at 11:00 a.m. Eastern Standard Time. You can access the recording by dialing 800-839-5492 for domestic calls or 402-220-2551 for international calls. It is now my pleasure to turn the floor over to Stefan Neely with Vallum Advisors.

Thank you, operator, and welcome to the Pangaea Logistics Solutions Third Quarter 2025 Results Conference Call. Leading the call with me today is CEO, Mark Filanowski; Chief Financial Officer, Gianni Del Signore; and COO, Mads Petersen. 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. With that, I would like to turn the call over to Mark.

Thank you, Stefan, and welcome to everyone on the call today. We achieved strong results in the third quarter, driven by an active Arctic trading period and progress on our strategic goals. The third quarter usually marks our highest activity level of the year due to Arctic operations, and this year was no different. We recorded TCE rates averaging 10% higher than the market rates for Panamax, Supramax, and Handysize vessels, bolstered by our niche ice class capabilities and long-term contracts. This achievement came during a strengthening dry bulk market. Following the integration of the 15 Handysize vessels acquired from SSI last year, our shipping days increased by 22% year-over-year, leading to adjusted EBITDA of $28.9 million, roughly a 20% increase compared to last year. This demonstrates the effectiveness of our integrated model and our scale as we continue to focus on cargo-centric strategies. Throughout the quarter, we expanded our integrated service platform, which combines specialized shipping with terminal, stevedoring, and port services. This development enhances our customer relationships and supports long-term growth. We launched operations at the Port of Pascagoula in Mississippi and the Port of Aransas in Texas. In the fourth quarter, we will start operations in Lake Charles, Louisiana. Although our expansion at the Port of Tampa, Florida is slightly delayed due to equipment delivery issues, we anticipate commencing operations early next year. We also continued our fleet renewal strategy. We sold our strategic endeavor and last month agreed to sell the 2005-built Bulk Freedom for $9.6 million. These moves align with our aim to enhance fleet efficiency and reduce emissions. As mentioned last quarter, we completed the acquisition of the remaining 49% interest in Seamar Management, our technical operations platform in Athens, which provides us with greater control over technical management and aligns our operational performance with our commercial strategy. Additionally, we secured financing for strategic spirit and strategic vision totaling $18 million, which improves our balance sheet flexibility and supports our growth and working capital needs. In terms of capital allocation, we remain disciplined and continue to prioritize investing in our fleet and organic growth opportunities, while also maintaining a strong balance sheet and returning capital to our investors. To date, we have repurchased around 600,000 shares for a total of approximately $3 million. We declared a quarterly dividend of $0.05, consistent with our previous two quarters. We closed the quarter with roughly $94 million in unrestricted cash, aided by strong operating cash flow. Our robust balance sheet enables us to pursue these priorities while navigating the current dry bulk landscape. Overall, the near-term dry bulk fundamentals look positive for our mix of minor bulks, with normal seasonal patterns expected as our Arctic activities taper off in the fourth quarter. The resumption of agricultural shipments from the U.S. to China should benefit the U.S. Gulf markets, which are crucial for us. Anticipated shipping demand for dry bulk movements from West Africa to China on larger vessels will also have positive effects on smaller vessels. Limited supply growth, combined with regulatory challenges, provides a favorable medium-term outlook, positioning our differentiated business model to deliver strong TCE returns throughout the cycle. Looking ahead to the fourth quarter of 2025, the broader dry bulk market remains strong. To date, we have booked 4,210 shipping days for the fourth quarter, generating a TCE of $17,107 per day. Before I hand the call to Gianni, I want to take a personal moment to announce that I will be retiring as CEO and stepping down from the Board effective January 1, 2026. Serving as CEO for the past four years has been a privilege, and working with our talented team has been rewarding. Together, we have transformed Pangaea into a unique cargo-focused logistics platform. We have tripled our fleet size and expanded our port and logistics operations to 10 marine terminals across the U.S. Gulf and Mid-Atlantic regions. Since the passing of our founder, Ed Coll, we have relentlessly pursued his vision and positioned Pangaea for sustainable long-term growth. Ed was a true supply chain innovator, always seeking solutions for his customers, and I believe he would be proud of what we've achieved and the strong foundation we've laid for the future. I have complete confidence that Mads Petersen, our current Chief Operating Officer, is the right leader to guide Pangaea into its next chapter. Mads brings over 20 years of experience in the dry bulk industry and has played a crucial role in shaping our strategy and operations, along with a 16-year tenure at Pangaea. His deep understanding of our business, his relationships with our employees and partners, and his commitment to our strategy will serve our customers and shareholders well. In closing, I want to thank our employees, customers, and shareholders for your trust and collaboration. It has been an honor to lead Pangaea, and I look forward to seeing the company continue to flourish under Mads' leadership. Now, I will turn the call over to Gianni to discuss our third quarter financial results.

Thank you, Mark, and welcome to those joining us on the call today. Our third quarter financial results were highlighted by sustained TCE premiums relative to the prevailing market, supported by our niche ice class fleet during the peak of the Arctic trade season. Third quarter TCE rates were $15,559 per day, a premium of approximately 10% over the average published market rates for Panamax, Supramax, and Handysize vessels in the period. Our adjusted EBITDA for the third quarter was $28.9 million, an increase of $4.9 million relative to the prior year period, and adjusted EBITDA margin increased from 15.7% to 17.1%, reflecting a 22% increase in shipping days with a 13% decrease in voyage expenses on a per-day basis. Our total charter hire expenses decreased by 7%, primarily due to a 13% decrease in charter-in days, somewhat offset by higher market rates. Our charter-in cost on a per-day basis was $15,387 in the third quarter of 2025, an increase of approximately 6% year-over-year. Through today, we've booked approximately 1,710 days at $16,537 per day for the fourth quarter of 2025. Vessel operating expenses increased by approximately 57% year-over-year, primarily due to the acquisition of the SSI fleet which increased total loan days by 61%. On a per-day basis, vessel operating expenses, net of technical management fees, were $5,634 per day. Total general and administrative expenses increased by 64% from $6 million to approximately $9.8 million. The increase was primarily due to the consolidation of our technical management operations, timing of recognition of incentive compensation year-over-year as well as growth related to the SSI fleet acquisition. In total, our reported GAAP net income for the third quarter was $12.2 million or $0.19 per diluted share. When excluding the impact of the unrealized losses from derivative instruments as well as other non-GAAP adjustments, our reported adjusted net income attributable to Pangaea during the quarter was $11.2 million or $0.17 per diluted share. Moving on to cash flows, total cash from operations was approximately flat year-over-year at $28.6 million, driven by strong operating performance and cash generated from working capital. At quarter end, we had approximately $94 million in unrestricted cash in total debt, including finance lease obligations of approximately $386 million. During the quarter, our overall interest expense was $5.6 million, an increase of $1.7 million due to new debt facilities entered into during the third quarter as well as the assumed debt and finance leases associated with the SSI acquisition. As Mark mentioned, during the third quarter, we completed financing of the strategic spirit for $9 million payable over 7 years at an interest rate of SOFR plus 1.95% and the strategic vision for $9 million payable over 5 years at an interest rate of SOFR plus 1.95%. The financings closed in July and September, respectively, and provided $18 million in cash that we intend to utilize for working capital and strategic investments. In addition, we continue to execute on our share repurchase program, buying back approximately 200,000 shares during the third quarter at an average price of $4.96 per share. Since quarter end, we've bought back an additional 200,000 shares, bringing our total to approximately 600,000 shares. Our buyback program complements our quarterly dividend policy reinforcing our focus on delivering shareholder returns through a disciplined and balanced approach to capital allocation. Going forward, we will maintain the same disciplined approach to capital allocation. Our priorities remain clear: preserve financial flexibility, deliver consistent returns to shareholders, and invest selectively in opportunities that strengthen our integrated shipping and logistics platform. This includes advancing our terminal and stevedoring operations and continuing our fleet renewal strategy with a focus on capital-efficient initiatives. With that, we will now open the line for questions.

We'll go first to Poe Fratt with AGP.

Mark, best wishes on your retirement.

It was Richard Nixon, who said, Paul, you're going to miss me. You won't have me to kick around anymore.

Well, I'm not sure he's been kicking you, but congratulations. Mads, even though you're not in the seat yet, could you highlight a couple of your priorities and any changes we might see? Maybe share your top three priorities going forward?

Thanks, Poe, great question. I mean, we are definitely not looking at anything revolutionary here. Mark and I and Gianni and Dan as well and the rest of the team here, we have worked on our strategy together. It is never a one-person project. So we just wanted to essentially maintain the same strategy, grow the platform the way it is now. So that is about the customers, growing the customer base, expanding our logistics and ports and terminals offering and then also, over time, of course, when the opportunities present themselves, we want to grow the number of ships in our fleet as well. So it's simply about execution for me. There will be, of course, tweaks along the way as there always are, but for sure, nothing revolutionary. So it's about running the company efficiently and then growing the platform as we go.

Great. Looking at your forward cover, it seems to be over 4,000 days at $17,000. What do you anticipate for the premium to the index in the fourth quarter? It compressed slightly in the third quarter, likely due to the Arctic trade, Fed rates, and an overall market improvement during that time. Should we expect the premium to increase in the fourth quarter? Typically, the third quarter is the peak for the year, but it appears the fourth quarter may exceed it this time. Could you discuss the rate environment for the fourth quarter?

Yes, I believe that the Arctic business will carry some effects into Q4 for us. Q3 has developed in a typical manner for us given the backdrop of a rising market. The ships are currently on voyages that must be completed before any repricing occurs. Additionally, we have some short-term cargo commitments that are margin contracts, which is unusual in a rising market. Q4 is not fully settled yet, and we haven't fixed all our exposure there. However, I do expect that over time, the premiums will likely move towards levels we usually see in our business during Q4.

Great. And then you sold another older Supra. Can you talk about your fleet renewal program in the context of asset values even for older assets are holding up pretty well? Is 2026 going to be as active as 2025 as far as fleet renewal on the sales side?

We'll have to see what opportunities present themselves. We have a pretty pragmatic approach to decisions around sales, right? Where we're looking at, as is the case for the Bulk Freedom when a ship is approaching 20 years old and the investments you have to make versus what we can replace that ship with. So we're always looking at that. I think in terms of fleet renewal, we're always assessing. I don't think we are necessarily deterred by the current market conditions in terms of values or the stock market really. So I still think that especially in the Ultramax segment, there are opportunities. It's all about finding the right ones. We're a little bit picky when it comes to the ships that we want to bring into the fleet, but we, for sure, long term don't want to have a shrinking fleet, that's for sure. So fleet renewal should keep us kind of at status quo. And then the question after that is whether expansion is in the cards.

We have no further questions at this time. I'd like to turn the floor back over to Mark Filanowski for any additional or closing comments.

Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at [email protected], and a member of our team will follow up with you. This concludes our call today. You may now disconnect.

Thank you. Once again, ladies and gentlemen, that will conclude today's event. Thank you for your participation. You may disconnect at this time and have a wonderful rest of your day.