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For the quarter ended September 30, 2012, operating loss amounted to $306.8 million compared to $2.2 million for the quarter ended September 30, 2011. For the quarter ended September 30, 2012, net loss amounted to $308.7 million, or a loss of $57.15 per basic and diluted share, based on 5,400,827 shares, which is the weighted average number of shares, basic and diluted, giving effect to the 1 to 15 reverse stock split effective October 15, 2012 ("reverse split-adjusted basis"). Net loss for the quarter ended September 30, 2011 amounted to $3.0 million, or $0.59 loss per basic and diluted share, based on 5,118,131 shares, which is the weighted average numbers of basic and diluted shares on a reverse split-adjusted basis.

Net Income for the quarter ended September 30, 2012 includes the following non-cash items:

•Impairment loss of $303.2 million, or $56.14 per basic and diluted share, related to the total fleet of our eight Supramax vessels and to one of our Capesize vessels, Star Sigma.

•Amortization of fair value of above market acquired time charters of $1.6 million, or $0.30 per basic and diluted share, associated with time charters attached to vessels acquired in the third quarter of 2011, including vessels Star Big and Star Mega, which time charters are amortized over the remaining period of the time charter as a decrease to net revenue.

•Expenses of $0.1 million, or $0.013 per basic and diluted share, relating to the amortization of stock based compensation recognized in connection with the unvested restricted shares issued to directors and employees.

Excluding these non-cash items, net loss for the quarter ended September 30, 2012 would amount to $3.8 million, or $0.70 loss per basic and diluted share, based on 5,400,827 shares, which is the weighted average number of basic and diluted shares, on a reverse split-adjusted basis.

Net Income for the quarter ended September 30, 2011 includes the following non-cash items:

•Amortization of fair value of above market acquired time charters of $0.8 million, or $0.15 per basic and diluted share, associated with time charters attached to vessels acquired in the third quarter of 2011, including vessels Star Big and Star Mega, which time charters are amortized over the remaining period of the time charter as a decrease to net revenue.

•Expenses of $0.6 million, or $0.11 per basic and diluted share, relating to the amortization of stock based compensation recognized in connection with the restricted shares issued to directors and employees.

•An unrealized loss of $0.1 million, or $0.02 per basic and diluted share, associated with the mark-to-market valuation of all the Company's derivatives.

Excluding these non-cash items, net loss for the quarter ended September 30, 2011 would amount to $1.5 million, or $0.3 loss per basic and diluted share, based on 5,118,131 shares, which is the weighted average number of basic and diluted shares, on a reverse split-adjusted basis.

Adjusted EBITDA for the quarters ended September 30, 2012 and 2011 excluding the above items was $7.6 million and $11.9 million, respectively. A reconciliation of EBITDA and adjusted EBITDA to net cash provided by cash flows from operating activities is set forth below.

We owned and operated an average of 14.0 and 12.5 vessels during the quarters ended September 30, 2012 and 2011, respectively, which earned an average Time Charter Equivalent, or TCE, rate of $15,201 per day and $18,817 per day, respectively. We refer you to the information under the heading "Summary of Selected Data" later in this earnings release for information regarding our calculation of TCE rates.