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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to         

Commission File Number 001-33393

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

Republic of the Marshall Islands

98-0439758

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

299 Park Avenue, 12th Floor, New York, New York 10171

(Address of principal executive offices) (Zip Code)

(646) 443-8550

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common stock, par value $0.01 per share

GNK

New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No

The number of shares outstanding of each of the issuer’s classes of common stock, as of May 8, 2024: Common stock, par value $0.01 per share — 42,751,752 shares.

Genco Shipping & Trading Limited

Page

PART I — FINANCIAL INFORMATION

Item 1.

Financial Statements (unaudited)

4

a)

Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023

4

b)

Condensed Consolidated Statements of Operations for the Three Months ended March 31, 2024 and 2023

5

c)

Condensed Consolidated Statements of Comprehensive Income for the Three Months ended March 31, 2024 and 2023

6

d)

Condensed Consolidated Statements of Equity for the Three Months ended March 31, 2024 and 2023

7

e)

Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2024 and 2023

8

f)

Notes to Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

44

Item 4.

Controls and Procedures

45

PART II —OTHER INFORMATION

Item 5.

Other Information

45

Item 6.

Exhibits

45

2

Website Information

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, filings with the U.S. Securities and Exchange Commission (the “SEC”), public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

3

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Genco Shipping & Trading Limited

Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023

(U.S. Dollars in thousands, except for share and per share data)

(Unaudited)

March 31, 

December 31, 

    

2024

    

2023

 

    

    

 

Assets

Current assets:

Cash and cash equivalents

$

48,364

$

46,542

Due from charterers, net of a reserve of $2,299 and $3,257, respectively

 

21,888

 

17,815

Prepaid expenses and other current assets

9,076

10,154

Inventories

30,638

26,749

Fair value of derivative instruments

572

Vessels held for sale

36,218

55,440

Total current assets

 

146,184

 

157,272

Noncurrent assets:

Vessels, net of accumulated depreciation of $308,626 and $296,452, respectively

 

934,572

 

945,114

Deferred drydock, net of accumulated amortization of $27,480 and $23,047 respectively

 

27,264

 

29,502

Fixed assets, net of accumulated depreciation and amortization of $8,134 and $8,063, respectively

 

7,211

 

7,071

Operating lease right-of-use assets

 

2,260

 

2,628

Restricted cash

 

315

 

315

Total noncurrent assets

 

971,622

 

984,630

Total assets

$

1,117,806

$

1,141,902

Liabilities and Equity

Current liabilities:

Accounts payable and accrued expenses

$

31,296

$

24,245

Deferred revenue

 

5,679

 

8,746

Current operating lease liabilities

2,325

2,295

Total current liabilities:

 

39,300

 

35,286

Noncurrent liabilities:

Long-term operating lease liabilities

1,208

1,801

Long-term debt, net of deferred financing costs of $9,332 and $9,831, respectively

160,668

190,169

Total noncurrent liabilities

 

161,876

 

191,970

Total liabilities

 

201,176

 

227,256

Commitments and contingencies (Note 14)

Equity:

Common stock, par value $0.01; 500,000,000 shares authorized; 42,751,752 and 42,546,959 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

427

425

Additional paid-in capital

1,536,987

1,553,421

Accumulated other comprehensive income

 

 

527

Accumulated deficit

 

(622,319)

 

(641,117)

Total Genco Shipping & Trading Limited shareholders’ equity

 

915,095

 

913,256

Noncontrolling interest

 

1,535

 

1,390

Total equity

 

916,630

 

914,646

Total liabilities and equity

$

1,117,806

$

1,141,902

See accompanying notes to Condensed Consolidated Financial Statements.

4

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

(Unaudited)

For the Three Months Ended

March 31, 

    

2024

    

2023

   

Revenues:

Voyage revenues

$

117,435

$

94,391

Total revenues

117,435

 

94,391

Operating expenses:

Voyage expenses

37,200

 

37,435

Vessel operating expenses

25,932

 

24,393

Charter hire expenses

3,510

3,664

General and administrative expenses (inclusive of nonvested stock amortization expense of $1,382 and $1,559, respectively)

7,664

 

7,750

Technical management expenses

1,031

762

Depreciation and amortization

17,223

 

15,944

Loss on sale of vessels

978

Other operating expense

1,804

Total operating expenses

95,342

 

89,948

Operating income

22,093

 

4,443

Other income (expense):

Other income (expense)

66

 

(324)

Interest income

824

 

770

Interest expense

(4,040)

(2,029)

Other expense, net

(3,150)

 

(1,583)

Net income

18,943

2,860

Less: Net income attributable to noncontrolling interest

145

 

226

Net income attributable to Genco Shipping & Trading Limited

$

18,798

$

2,634

Earnings per share-basic

$

0.44

$

0.06

Earnings per share-diluted

$

0.43

$

0.06

Weighted average common shares outstanding-basic

42,918,248

 

42,632,059

Weighted average common shares outstanding-diluted

43,606,580

 

43,097,362

See accompanying notes to Condensed Consolidated Financial Statements.

5

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2024 and 2023

(U.S. Dollars in Thousands)

(Unaudited)

For the Three Months Ended

March 31, 

    

2024

    

2023

 

Net income

$

18,943

 

$

2,860

Other comprehensive loss

(527)

(1,628)

Comprehensive income

18,416

1,232

Less: Comprehensive income attributable to noncontrolling interest

145

226

Comprehensive income attributable to Genco Shipping & Trading Limited

$

18,271

 

$

1,006

See accompanying notes to Condensed Consolidated Financial Statements.

6

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Equity

For the Three Months Ended March 31, 2024 and 2023

(U.S. Dollars in Thousands)

Genco

Shipping &

Accumulated

Trading

Additional

Other

Limited

Common

Paid-in

Comprehensive

Accumulated

Shareholders'

Noncontrolling

    

Stock

    

Capital

    

Income

    

Deficit

    

Equity

    

Interest

    

Total Equity

Balance — January 1, 2024

$

425

$

1,553,421

$

527

$

(641,117)

$

913,256

$

1,390

$

914,646

Net income

18,798

18,798

145

18,943

Other comprehensive loss

(527)

(527)

(527)

Issuance of shares due to vesting of RSUs and exercise of options

2

(2)

Cash dividends declared ($0.41 per share)

(17,814)

(17,814)

(17,814)

Nonvested stock amortization

1,382

1,382

1,382

Balance — March 31, 2024

$

427

$

1,536,987

$

$

(622,319)

$

915,095

$

1,535

$

916,630

Genco

Shipping &

Accumulated

Trading

Additional

Other

Limited

Common

Paid-in

Comprehensive

Accumulated

Shareholders'

Noncontrolling

    

Stock

    

Capital

    

Income

    

Deficit

    

Equity

    

Interest

    

Total Equity

Balance — January 1, 2023

$

423

$

1,588,777

$

6,480

$

(628,247)

$

967,433

$

876

$

968,309

Net income

2,634

2,634

226

2,860

Other comprehensive loss

(1,628)

(1,628)

(1,628)

Issuance of shares due to vesting of RSUs and exercise of options

2

(2)

Cash dividends declared ($0.50 per share)

(21,516)

(21,516)

(21,516)

Nonvested stock amortization

1,559

1,559

1,559

Balance — March 31, 2023

$

425

$

1,568,818

$

4,852

$

(625,613)

$

948,482

$

1,102

$

949,584

See accompanying notes to Condensed Consolidated Financial Statements.

7

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023

(U.S. Dollars in Thousands)

(Unaudited)

For the Three Months Ended

March 31, 

    

2024

    

2023

 

Cash flows from operating activities:

Net income

 

$

18,943

$

2,860

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

17,223

 

15,944

Amortization of deferred financing costs

499

 

418

Right-of-use asset amortization

368

360

Amortization of nonvested stock compensation expense

1,382

 

1,559

Loss on sale of vessels

978

 

Amortization of premium on derivatives

45

59

Insurance proceeds for protection and indemnity claims

117

34

Change in assets and liabilities:

(Increase) decrease in due from charterers

(4,073)

 

8,641

Decrease (increase) in prepaid expenses and other current assets

651

 

(2,263)

Increase in inventories

(3,889)

(3,428)

Increase (decrease) in accounts payable and accrued expenses

5,831

 

(97)

(Decrease) increase in deferred revenue

(3,067)

 

71

Decrease in operating lease liabilities

(563)

(480)

Deferred drydock costs incurred

(2,194)

 

(4,112)

Net cash provided by operating activities

32,251

 

19,566

Cash flows from investing activities:

Purchase of vessels and ballast water treatment systems, including deposits

(930)

 

(2,003)

Purchase of other fixed assets

(240)

 

(1,085)

Net proceeds from sale of vessels

18,505

Insurance proceeds for hull and machinery claims

159

235

Net cash provided by (used in) investing activities

17,494

 

(2,853)

Cash flows from financing activities:

Repayments on the $500 Million Revolver

(30,000)

Repayments on the $450 Million Credit Facility

(8,750)

Cash dividends paid

(17,885)

(21,666)

Payment of deferred financing costs

(38)

 

Net cash used in financing activities

(47,923)

 

(30,416)

Net increase (decrease) in cash, cash equivalents and restricted cash

1,822

 

(13,703)

Cash, cash equivalents and restricted cash at beginning of period

46,857

 

64,100

Cash, cash equivalents and restricted cash at end of period

 

$

48,679

$

50,397

See accompanying notes to Condensed Consolidated Financial Statements.

8

Genco Shipping & Trading Limited

(U.S. Dollars in Thousands, Except Per Share and Share Data)

Notes to Condensed Consolidated Financial Statements (unaudited)

1 – GENERAL INFORMATION

The accompanying Condensed Consolidated Financial Statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk vessels and operates in one business segment.

As of March 31, 2024, the Company’s fleet consisted of 45 drybulk vessels, including 18 Capesize drybulk vessels, 15 Ultramax drybulk vessels and twelve Supramax drybulk vessels, with an aggregate carrying capacity of approximately 4,828,000 dwt and an average age of approximately 11.8 years.

During September 2021, the Company and Synergy Marine Pte. Ltd. (“Synergy”), a third party, formed a joint venture, GS Shipmanagement Pte. Ltd. (“GSSM”). GSSM is owned 50% by the Company and 50% by Synergy as of March 31, 2024 and December 31, 2023, which provides ship management services to the Company’s vessels. As of March 31, 2024 and December 31, 2023, the cumulative investments GSSM received from the Company and Synergy totaled $50 and $50, respectively, which were used for expenditures directly related to the operations of GSSM.

Management has determined that GSSM qualifies as a variable interest entity, and, when aggregating the variable interest held by the Company and Synergy, the Company is the primary beneficiary as the Company has the ability to direct the activities that most significantly impact GSSM’s economic performance. Accordingly, the Company consolidates GSSM.  

2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and the rules and regulations of the SEC that apply to interim financial statements, including the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the disclosures and footnotes normally included in complete consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 27, 2024 (the “2023 10-K”). The accompanying Condensed Consolidated Financial Statements include the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2024.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include vessel valuations, impairment of vessels, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels, the fair value of time charters acquired, performance-based restricted stock units and the fair value of derivative instruments, if any. Actual results could differ from those estimates.

9

Cash, cash equivalents and restricted cash

The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Non-current restricted cash includes cash that is restricted pursuant to our lease agreement. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

March 31, 

December 31, 

    

2024

    

2023

 

Cash and cash equivalents

 

$

48,364

 

$

46,542

Restricted cash – current

Restricted cash – noncurrent

 

315

 

315

Cash, cash equivalents and restricted cash

 

$

48,679

 

$

46,857

Vessels held for sale

On November 14, 2023 the Company entered into an agreement to sell the Genco Commodus and the sale of the vessel was completed on February 7, 2024. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2023.

Additionally, on December 21, 2023 the Company entered into agreements to sell the Genco Claudius and Genco Maximus. On February 24, 2024, the Company terminated its agreements to sell the Genco Claudius and the Genco Maximus due to the buyers’ breach of the agreements’ terms. During the first quarter of 2024, the Company commenced arbitration with the buyers, seeking a declaration that it validly terminated the agreements due to the buyers’ breach, and to retain the deposits paid by the buyers in connection with the sales, totaling $3,650. During the second quarter of 2024, the Company and the buyers reached an agreement in principle to settle this matter and conclude the arbitration proceeding in exchange for the buyers releasing the deposits to the Company. On March 1, 2024, the Company entered into new agreements to sell the Genco Claudius and Genco Maximus to a separate unaffiliated third-party. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreements.

Bunker swap and forward fuel purchase agreements

From time to time, the Company may enter into fuel hedge agreements with the objective of reducing the risk of the effect of changing fuel prices. The Company has entered into bunker swap agreements and forward fuel purchase agreements. The Company’s bunker swap agreements and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains and losses are recorded in the Condensed Consolidated Statements of Operations. Derivatives are Level 2 instruments in the fair value hierarchy.

During the three months ended March 31, 2024 and 2023, the Company recorded $18 and $108 of realized gains in other income (expense), respectively. During the three months ended March 31, 2024 and 2023, the Company recorded $160 and ($42) of unrealized gains (losses) in other income (expense), respectively.

The total fair value of the bunker swap agreements and forward fuel purchase agreements in an asset position as of March 31, 2024 and December 31, 2023 is $161 and $1, respectively, and are recorded in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The total fair value of the bunker swap agreements and

10

forward fuel purchase agreements in a liability position as of March 31, 2024 and December 31, 2023 is $1 and $0, respectively, and are recorded in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets.

Voyage expense recognition

In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters and spot market-related time charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net gain (loss) of $80 and ($371) during the three months ended March 31, 2024 and 2023, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Loss on sale of vessels

During the three months ended March 31, 2024, the Company recorded a net loss of $978 related primarily to the sale of the Genco Commodus. During the three months ended March 31, 2023, the Company did not complete the sale of any vessels. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

Other operating expense

Other operating expense of $1,804 recorded during the three months ended March 31, 2024 consists of costs incremental to routine expenses that were incurred related to the Company’s 2024 annual meeting to be held on May 23, 2024.

3 – CASH FLOW INFORMATION

For the three months ended March 31, 2024, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $961 for the Purchase of vessels and ballast water treatment systems, including deposits, $678 for the Purchase of other fixed assets and $178 for the Net proceeds from sale of vessels. For the three months ended March 31, 2024, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $959 for Cash dividends payable.

For the three months ended March 31, 2023, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $766 for the Purchase of vessels and ballast water treatment systems, including deposits, and $553 for the Purchase of other fixed assets. For the three months ended March 31, 2023, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $906 for Cash dividends payable.

During the three months ended March 31, 2024 and 2023, cash paid for interest, net of amounts capitalized, was $4,001 and $3,331, respectively, which was offset by $588 and $1,827 received as result of the interest rate cap agreements, respectively.

During the three months ended March 31, 2024 and 2023, any cash paid for income taxes was insignificant.

11

All stock options exercised during the three months ended March 31, 2024 and 2023 were cashless. Refer to Note 13 — Stock-Based Compensation for further information.

On February 21, 2024, the Company granted 168,411 restricted stock units and 99,065 performance-based restricted stock units to certain individuals. The aggregate fair value of these restricted stock units and performance-based restricted stock units was $3,060 and $2,143, respectively.

On March 10, 2023, the Company granted 2,948 restricted stock units to an individual. The aggregate fair value of these restricted stock units was $50.

On February 21, 2023, the Company granted 68,758 restricted stock units to certain individuals. The aggregate fair value of these restricted stock units was $1,250.

Refer to Note 13 — Stock-Based Compensation for further information regarding the aforementioned grants.

Supplemental Condensed Consolidated Cash Flow information related to leases is as follows:

For the Three Months Ended

March 31, 

2024

2023

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

613

$

557

4 – VESSEL ACQUISITIONS AND DISPOSITIONS

Vessel Acquisitions

On October 10, 2023, the Company entered into an agreement to acquire a 2016-built 181,000 dwt Capesize vessel that was renamed the Genco Ranger for a purchase price of $43,100. Additionally, on November 14, 2023, the Company entered into an agreement to acquire a 2016-built 181,000 dwt Capesize vessel that was renamed the Genco Reliance for a purchase price of $43,000. The Genco Ranger and Genco Reliance were delivered on November 27, 2023 and November 21, 2023, respectively. The Company utilized a combination of cash on hand as well as a $65,000 draw down on the $450 Million Credit Facility (as defined in Note 7 below) to finance the purchases.

Vessel Dispositions

On November 14, 2023, the Company entered into an agreement to sell the Genco Commodus, a 2009-built Capesize vessel, to a third party for $19,500 less a 1.0% commission payable to a third party. The sale was completed on February 7, 2024.

Additionally, on December 21, 2023, the Company entered into agreements to sell the Genco Claudius, a 2010-built Capesize vessel, to a third party for $18,500 less a 1.0% commission payable to a third party and the Genco Maximus, a 2009-built Capesize vessel, to a third party for $18,000 less a 1.0% commission payable to a third party. On February 24, 2024, the Company terminated its agreements to sell the Genco Claudius and the Genco Maximus due to the buyers’ breach of the agreements’ terms. On March 1, 2024, the Company entered into new agreements to sell the Genco Claudius and Genco Maximus to a separate unaffiliated third-party for $24,200 less a 2.0% commission payable to a third party and $22,800 less a 2.0% commission payable to a third party, respectively. The sales of the Genco Claudius and Genco Maximus were completed on April 22, 2024 and April 2, 2024, respectively.

5 – EARNINGS PER SHARE

The computation of basic earnings per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings per share assumes the vesting of nonvested

12

stock awards and the exercise of stock options (refer to Note 13 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive.

The components of the denominator for the calculation of basic and diluted earnings per share are as follows:

For the Three Months Ended

March 31, 

    

2024

    

2023

 

Common shares outstanding, basic:

Weighted-average common shares outstanding, basic

42,918,248

 

42,632,059

Common shares outstanding, diluted:

Weighted-average common shares outstanding, basic

42,918,248

 

42,632,059

Dilutive effect of stock options

200,531

214,611

Dilutive effect of performance-based restricted stock units

162,735

Dilutive effect of restricted stock units

325,066

 

250,692

Weighted-average common shares outstanding, diluted

43,606,580

 

43,097,362

6 – RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2024 and 2023, the Company did not have any related party transactions.

7 – DEBT

Long-term debt, net consists of the following:

March 31, 

December 31, 

    

2024

    

2023

 

Principal amount

 

$

170,000

 

$

200,000

Less: Unamortized deferred financing costs

 

(9,332)

 

(9,831)

Less: Current portion

 

 

Long-term debt, net

 

$

160,668

 

$

190,169

$500 Million Revolver

On November 29, 2023, the Company entered into a fourth amendment to amend, extend and upsize its existing $450 Million Credit Facility (as defined below). The amended structure consists of a $500 million revolving credit facility, which can be utilized to support growth of our asset base as well as general corporate purposes (the “$500 Million Revolver”). The maturity date of the $500 Million Revolver is November 29, 2028.

As of March 31, 2024, there was $298,894 availability under the $500 Million Revolver. Total debt repayments of $30,000 were made during the three months ended March 31, 2024 under the $500 Million Revolver.

13

As of March 31, 2024, the Company was in compliance with all of the financial covenants under the $500 Million Revolver.

$450 Million Credit Facility

On August 3, 2021, the Company entered into the $450 Million Credit Facility, a five-year senior secured credit facility which was allocated between an up to $150,000 term loan facility and an up to $300,000 revolving credit facility which was used to refinance the Company’s two prior credit facilities.

On May 30, 2023, the Company entered into an amendment to the $450 Million Credit Facility to transition from the use of the London Inter-Bank Offered Rate (“LIBOR”) to calculate interest to the Secured Overnight Financing Rate (“SOFR”) effective June 30, 2023. Borrowings began bearing interest at SOFR plus the applicable margin effective June 30, 2023.

Total debt repayments of $8,750 were made during the three months ended March 31, 2023 under the $450 Million Credit Facility.

On November, 29, 2023, the Company entered into a fourth amendment to the $450 Million Credit Facility; refer to the “$500 Million Revolver” section above.

Interest rates

The following table sets forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the cost associated with unused commitment fees, if applicable. The effective interest rate below does not include the effect of any interest rate cap agreements. The following table also includes the range of interest rates on the de