(RTTNews) - Tuesday, Greece-based Paragon Shipping, Inc. (PRGN: News ) posted a drop in profit for the third-quarter from a year-ago, due to reduction in time charter revenues and impairment losses. Earnings, however, came in ahead of Street expectations.

Paragon Shipping's third quarter profit decreased to $17.97 million from $18.89 million in the prior-year period. On a per share basis, net income decreased to $0.40 from $0.69 last year.

Excluding all non-cash items, adjusted net income was $15.1 million or $0.33 per share, compared to adjusted net income of $14.6 million or $0.54 per share in the year-earlier quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.30 for the quarter. Analysts' estimates typically exclude one-time items.

Time Charter Revenues declined to $40.10 million from $43.57 million in the year-ago period. Total revenue, net of voyage expenses were $38.05 million, down from $41.17 million reported last year. Paragon Shipping reduced its voyage expenses to $26,846 from $274,255 and spent less on commission, which decreased to $2.02 million from $2.12 million in the prior-year period.

Paragon Shipping operated 12 vessels, earning an average time charter equivalent rate or TCE rate of $34,687 per day, compared to an average of 11.6 vessels and TCE rate of $40,250 per day in the year-earlier quarter.
Total adjusted operating expenses, including vessel operating expenses, management fees, general and administrative expenses and drydocking costs, were $6.6 million or approximately $5,983 per day, down from total adjusted operating expenses of $8.9 million or approximately $8,365 per day in the year-ago period. Results for the quarter exclude a $0.4 million of share-based compensation for the period, while last-year quarter's results exclude a $0.1 million of share-based compensation.

The company reported an impairment loss of $654,570 for the quarter, compared to none in the year-earlier quarter. Paragon Shipping narrowed its unrealized losses from interest rate swaps to $160,208 from $1.08 million in the year-earlier period.

Pursuant to its time chartering strategy, Paragon Shipping mainly employs vessels under fixed rate charters for periods ranging from one to five years. Assuming all options exercised, the company has secured under such contracts 100%, 90% and 45% of its fleet capacity in the remainder of 2010, in 2011 and in 2012, respectively.

For the nine-month period, Paragon Shipping's profit declined to $53.0 million or $1.50 per share from $59.3 million or $2.19 per share a year ago. Excluding all non-cash items, adjusted net income was $46.4 million or $1.32 per share, compared to an adjusted net income of $42.2 million or $1.56 per share in the year-ago period. Time charter revenue declined slightly to $124.0 million from $125.0 million in the prior year period.

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