DryShips Inc. Reports Financial and Operating Results for the First
Quarter 2014
ATHENS, GREECE--(Marketwired - May 22, 2014) - DryShips Inc.
(NASDAQ: DRYS), or DryShips or the Company, an international
provider of marine transportation services for drybulk and
petroleum cargoes, and through its majority owned subsidiary, Ocean
Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling
services, today announced its unaudited financial and operating
results for the first quarter ended March 31, 2014.
First Quarter 2014
Financial Highlights
- For the first quarter of 2014, the Company reported a net loss
of $34.6 million, or $0.08 basic and diluted loss per share.
Included in the first quarter of 2014 results are:
- Non-cash write-offs and redemption costs associated with the
full refinancing of Ocean Rig's $500.0 million 9.5% senior
unsecured notes due 2016, totaling $32.6 million or $0.08 per
share. Excluding the above items, the Company would have reported a
net loss of $15.2 million, or $0.04 per share. (1)
- The Company reported Adjusted EBITDA of $201.2 million for the
first quarter of 2014, as compared to $112.0 million for the first
quarter of 2013. (2)
Recent
Highlights
- On May 8, 2014, Ocean Rig announced that its Board of Directors
declared a quarterly cash dividend with respect to the quarter
ended March 31, 2014 of $0.19 per common share, to shareholders of
record as of May 20, 2014 and payable on or about May 30,
2014.
- On April 30, 2014, the Company reached an agreement with the
lender under its two Senior Secured Credit Facilities. Under the
terms of these agreements, among other things, the lender has
agreed to waive and amend certain financial covenants until
maturity and the Company has agreed to provide a pledge over
approximately 3,800,000 Ocean Rig shares owned by DryShips until
December 31, 2014. These agreements are subject to definitive
documentation which is expected to be completed by the end of the
second quarter of 2014.
- On April 8, 2014, Ocean Rig signed a contract to construct two
7th generation new integrated design drillships at Samsung Heavy
Industries Co. Ltd, ("Samsung"). The drillships are scheduled to be
delivered to Ocean Rig in February 2017 and June 2017,
respectively. Each drillship's total cost is estimated to be
approximately $685.0 million, with favorable payment terms. The
drillships will be capable to drill in water depths of 12,000ft and
possess a number of new advanced design and technical features
which include, among others, capacity for dual 7-ram blow out
preventers ("BOP's"); increased storage and hoisting capacity;
larger deck space and living quarters; and are based on a new fuel
efficient and superior motion stability hull design.
- On April 8, 2014, Ocean Rig deferred the expected delivery of
its ultra deepwater drillship, the Ocean Rig Santorini,
from late-2015 to mid-2016.
- In connection with the previously announced Letter of Award,
Ocean Rig was awarded from Total E&P Angola, a 6 year contract
for drilling operations offshore Angola for its ultra deepwater
drillship Ocean Rig Skyros. The contract, which
remains subject to signing of final documentation, is expected to
commence in the third quarter of 2015 and has an estimated backlog
of $1.3 billion.
- On March 26, 2014, Ocean Rig closed an offering of 7.25% senior
notes due 2019 in the amount of $500.0 million (the "7.25% Notes
Offering"). Ocean Rig used the proceeds from the 7.25% Notes
Offering, together with cash on hand, to repurchase and redeem the
9.5% senior unsecured notes due 2016 (the "Senior Unsecured Notes")
of which $500.0 million in aggregate principal amount was
outstanding prior to closing of the 7.25% Notes Offering.
- On March 24, 2014, Ocean Rig took delivery of its ultra
deepwater drillship, the Ocean Rig Athena and drew down
the available amount of $450.0 million under its $1.35 billion
syndicated secured term loan facility. The drillship is expected to
commence drilling operations in late June 2014 under the three year
contract with ConocoPhillips.
- On March 18, 2014 the Company concluded a Memorandum of
Agreement with an unaffiliated third party for the acquisition of
one second hand Capesize vessel, Raiatea (ex. Conches),
for a purchase price of $53.0 million. The vessel was delivered on
April 24, 2014.
- On March 2, 2014, the Ocean Rig Skyros commenced a
five well or a minimum of a 275 day contract for drilling offshore
West Africa with Total E&P Angola.
- On December 31, 2013, the Company resumed sales under its
previously announced $200 million program of at the market
issuances of its common shares through Evercore Group L.L.C. as its
sales agent. During the first quarter of 2014, 22,209,844
common shares were issued and sold at an average share price of
$4.14 per share pursuant to the at-the-market offering, resulting
in net proceeds to the Company of $90.0 million, after deducting
commissions.
(1) The net result is adjusted for the minority interests of
40.62% not owned by DryShips Inc. common stockholders. (2) Adjusted
EBITDA is a non-GAAP measure; please see later in this press
release for reconciliation to net income.
George Economou, Chairman and Chief Executive Officer of the
Company, commented:
"While charter rates for larger drybulk carriers under-performed
during the first quarter of 2014, forward charter rates and asset
prices are holding up resiliently, underscoring the bullish market
sentiment. The charter rates earned by our tankers during the first
quarter of 2014 were above cash breakeven levels, and contributed
to our free cash balances. Following a period of oversupply the
recent volatility in the tanker and drybulk sectors is a clear sign
of a more balanced supply and demand. We continue to expect a
sustainable recovery in charter rates during the second half of
2014 and beyond.
As of the end of the first quarter, DryShips has about 2,723
spot days remaining in 2014 and 3,613 spot days in 2015 for its
crude oil tanker fleet and about 7,023 spot days remaining in 2014
and 12,208 spot days in 2015 for its drybulk fleet. DryShips
is therefore uniquely positioned to take full advantage of the
expected market recovery.
We believe our operations are fully funded through 2014 and,
while our at-the-market equity offering is still ongoing, we have
shown that we utilize the program in a disciplined manner. In the
coming months, we expect to conclude various financial initiatives
to fund the maturity of our convertible notes which we expect to
take place in December of this year.
Turning to the offshore side, Ocean Rig continues to execute on
its business plan. Ocean Rig's modern fleet, strong balance sheet
and solid contract backlog of $5.0 billion, provides it with the
foundation to implement its previously announced value creation
initiatives as evidenced by the recent dividend announcement which
has a direct benefit on DryShips."
Financial Review: 2014
First Quarter
The Company recorded a net loss of $34.6 million, or $0.08 basic
and diluted loss per share, for the three-month period ended March
31, 2014 as compared to a net loss of $116.6 million, or $0.30
basic and diluted loss per share, for the three-month period ended
March 31, 2013. Adjusted EBITDA(1) was $201.2 million for the first
quarter of 2014, as compared to $112.0 million for the same period
in 2013.
For the drybulk carrier segment, net voyage revenues (voyage
revenues minus voyage expenses) amounted to $45.3 million for the
three-month period ended March 31, 2014, as compared to $36.9
million for the three-month period ended March 31, 2013. For the
tanker segment, net voyage revenues amounted to $22.3 million for
the three-month period ended March 31, 2014, as compared to $10.8
million for the same period in 2013. For the offshore drilling
segment, revenues from drilling contracts increased by $114.4
million to $360.8 million for the three-month period ended March
31, 2014, as compared to $246.4 million for the same period in
2013.
Total vessels', drilling rigs' and drillships' operating
expenses and total depreciation and amortization increased to
$179.6 million and to $107.3 million, respectively, for the
three-month period ended March 31, 2014, from $144.9 million and
$82.7 million, respectively, for the three-month period ended March
31, 2013. Total general and administrative expenses increased to
$49.1 million in the first quarter of 2014, from $36.2 million
during the same period in 2013.
Interest and finance costs, net of interest income, amounted to
$114.3 million for the three-month period ended March 31, 2014,
compared to $56.9 million for the three-month period ended March
31, 2013.
The Time Charter Equivalent(2), or TCE, rate for our drybulk
fleet was $13,564 per day per vessel in the three month period
ended March 31, 2014, as compared to $11,396 per day per vessel in
the corresponding period of 2013. The Time Charter Equivalent,
or TCE, rate for our tanker fleet was $24,781 per day per vessel in
the three month period ended March 31, 2014 which is a significant
improvement compared to the $12,792 per day per vessel TCE rate in
the corresponding period of 2013.
(1) Adjusted EBITDA is a non-GAAP measure; please see later in
this press release for reconciliation to net income. (2) Time
Charter Equivalent is a non-GAAP measure; please see later in this
press release for definition.
Fleet List
The table below describes our fleet profile and drilling
contract backlog as of May 15, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
|
|
|
|
Gross rate |
|
Redelivery |
|
|
|
|
Built |
|
DWT |
|
Type |
|
Per day |
|
Earliest |
|
Latest |
Drybulk fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capesize: |
|
|
|
|
|
|
|
|
|
|
|
|
Rangiroa |
|
2013 |
|
206,000 |
|
Capesize |
|
$23,000 |
|
Apr-18 |
|
Nov-23 |
Negonego |
|
2013 |
|
206,000 |
|
Capesize |
|
$21,500 |
|
Mar-20 |
|
Feb-28 |
Fakarava |
|
2012 |
|
206,000 |
|
Capesize |
|
$25,000 |
|
Sept-15 |
|
Sept-20 |
Raiatea (ex. Conches) |
|
2011 |
|
179,078 |
|
Capesize |
|
$26,000 |
|
May-14 |
|
Jan-15 |
Mystic |
|
2008 |
|
170,040 |
|
Capesize |
|
$52,310 |
|
Aug-18 |
|
Dec-18 |
Robusto |
|
2006 |
|
173,949 |
|
Capesize |
|
$26,000 |
|
Aug-14 |
|
Apr-18 |
Cohiba |
|
2006 |
|
174,234 |
|
Capesize |
|
$26,250 |
|
Oct-14 |
|
Jun-19 |
Montecristo |
|
2005 |
|
180,263 |
|
Capesize |
|
$23,500 |
|
May-14 |
|
Feb-19 |
Flecha |
|
2004 |
|
170,012 |
|
Capesize |
|
$55,000 |
|
Jul-18 |
|
Nov-18 |
Manasota |
|
2004 |
|
171,061 |
|
Capesize |
|
$30,000 |
|
Jan-18 |
|
Aug-18 |
Partagas |
|
2004 |
|
173,880 |
|
Capesize |
|
$11,500 |
|
Jun-14 |
|
Oct-14 |
Alameda |
|
2001 |
|
170,662 |
|
Capesize |
|
$27,500 |
|
Nov-15 |
|
Jan-16 |
Capri |
|
2001 |
|
172,579 |
|
Capesize |
|
$20,000 |
|
Jan-16 |
|
May-16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax: |
|
|
|
|
|
|
|
|
|
|
|
|
Raraka |
|
2012 |
|
76,037 |
|
Panamax |
|
$7,500 |
|
Jan-15 |
|
Mar-15 |
Woolloomooloo |
|
2012 |
|
76,064 |
|
Panamax |
|
$7,500 |
|
Dec-14 |
|
Feb-15 |
Amalfi |
|
2009 |
|
75,206 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Rapallo |
|
2009 |
|
75,123 |
|
Panamax |
|
T/C
Index linked |
|
Jul-16 |
|
Sep-16 |
Catalina |
|
2005 |
|
74,432 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Majorca |
|
2005 |
|
74,477 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Ligari |
|
2004 |
|
75,583 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Saldanha |
|
2004 |
|
75,707 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Sorrento |
|
2004 |
|
76,633 |
|
Panamax |
|
$24,500 |
|
Aug-21 |
|
Dec-21 |
Mendocino |
|
2002 |
|
76,623 |
|
Panamax |
|
T/C
Index linked |
|
Sep-16 |
|
Nov-16 |
Bargara |
|
2002 |
|
74,832 |
|
Panamax |
|
T/C
Index linked |
|
Sep-16 |
|
Nov-16 |
Oregon |
|
2002 |
|
74,204 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Ecola |
|
2001 |
|
73,931 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Samatan |
|
2001 |
|
74,823 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Sonoma |
|
2001 |
|
74,786 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Capitola |
|
2001 |
|
74,816 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Levanto |
|
2001 |
|
73,925 |
|
Panamax |
|
T/C
Index linked |
|
Aug-16 |
|
Oct-16 |
Maganari |
|
2001 |
|
75,941 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Coronado |
|
2000 |
|
75,706 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Marbella |
|
2000 |
|
72,561 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Redondo |
|
2000 |
|
74,716 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Topeka |
|
2000 |
|
74,716 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Ocean
Crystal |
|
1999 |
|
73,688 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
Helena |
|
1999 |
|
73,744 |
|
Panamax |
|
Spot |
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supramax: |
|
|
|
|
|
|
|
|
|
|
|
|
Byron |
|
2003 |
|
51,118 |
|
Supramax |
|
Spot |
|
N/A |
|
N/A |
Galveston |
|
2002 |
|
51,201 |
|
Supramax |
|
Spot |
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Built/or Scheduled Delivery |
|
DWT |
|
Type |
|
Gross rate Per day |
|
Redelivery Earliest |
|
Latest |
Newbuildings |
|
|
|
|
|
|
|
|
|
|
|
|
Panamax: |
|
|
|
|
|
|
|
|
|
|
|
|
Newbuilding Ice -class Panamax 1 |
|
2014 |
|
75,900 |
|
Panamax |
|
N/A |
|
N/A |
|
N/A |
Newbuilding Ice -class Panamax 2 |
|
2014 |
|
75,900 |
|
Panamax |
|
N/A |
|
N/A |
|
N/A |
Newbuilding Ice -class Panamax 3 |
|
2014 |
|
75,900 |
|
Panamax |
|
N/A |
|
N/A |
|
N/A |
Newbuilding Ice -class Panamax 4 |
|
2014 |
|
75,900 |
|
Panamax |
|
N/A |
|
N/A |
|
N/A |
Tanker fleet |
|
|
|
|
|
|
|
|
|
|
|
|
Suezmax: |
|
|
|
|
|
|
|
|
|
|
|
|
Bordeira |
|
2013 |
|
158,300 |
|
Suezmax |
|
Spot |
|
N/A |
|
N/A |
Petalidi |
|
2012 |
|
158,300 |
|
Suezmax |
|
Spot |
|
N/A |
|
N/A |
Lipari |
|
2012 |
|
158,300 |
|
Suezmax |
|
Spot |
|
N/A |
|
N/A |
Vilamoura |
|
2011 |
|
158,300 |
|
Suezmax |
|
Spot |
|
N/A |
|
N/A |
Aframax: |
|
|
|
|
|
|
|
|
|
|
|
|
Alicante |
|
2013 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
Mareta |
|
2013 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
Calida |
|
2012 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
Saga |
|
2011 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
Daytona |
|
2011 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
Belmar |
|
2011 |
|
115,200 |
|
Aframax |
|
Spot |
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Rigs/Drillships:
Unit |
|
Year built/ or Scheduled Delivery |
|
Redelivery |
|
Operating area |
|
Backlog ($m) |
|
|
|
|
|
|
|
|
|
Leiv Eiriksson |
|
2001 |
|
Q2 - 16 |
|
Norway |
|
$382 |
Eirik
Raude |
|
2002 |
|
Q4 -
14 |
|
Sierra Leone, Ivory Coast |
|
$116 |
Ocean
Rig Corcovado |
|
2011 |
|
Q2 -
15 |
|
Brazil |
|
$168 |
Ocean
Rig Olympia |
|
2011 |
|
Q3 -
15 |
|
Gabon, Angola |
|
$271 |
Ocean
Rig Poseidon |
|
2011 |
|
Q2 -
16 |
|
Angola |
|
$528 |
Ocean
Rig Mykonos |
|
2011 |
|
Q1 -
15 |
|
Brazil |
|
$142 |
Ocean
Rig Mylos |
|
2013 |
|
Q4 -
16 |
|
Brazil |
|
$579 |
Ocean
Rig Skyros |
|
2013 |
|
Q1 -
15 |
|
Angola |
|
$116 |
|
|
|
|
Q3 -
21 |
|
Angola |
|
$1,264(1) |
Ocean
Rig Athena |
|
2014 |
|
Q2 -
17 |
|
Angola |
|
$758 |
Newbuildings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Rig Apollo (Expected delivery Jan. 2015) |
|
2015 |
|
Q1 -
18 |
|
Congo |
|
$670 |
Ocean
Rig Santorin i (Expected delivery Jun. 2016) |
|
2016 |
|
N/A |
|
N/A |
|
N/A |
Ocean
Rig TBN#1 (Expected delivery Feb. 2017) |
|
2017 |
|
N/A |
|
N/A |
|
N/A |
Ocean
Rig TBN#2 (Expected delivery Jun. 2017) |
|
2017 |
|
N/A |
|
N/A |
|
N/A |
Total |
|
|
|
|
|
|
|
$5.0 billion |
|
|
|
|
|
|
|
|
|
(1) Contract remains subject to signing of final
documentation.
Drybulk Carrier and
Tanker Segment Summary Operating Data (unaudited)
(Dollars in thousands, except average daily
results)
|
|
Drybulk |
Three Months Ended March 31, |
|
2013 |
2014 |
Average number of vessels(1) |
36.0 |
38.0 |
Total
voyage days for vessels(2) |
3,240 |
3,338 |
Total
calendar days for vessels(3) |
3,240 |
3,420 |
Fleet
utilization(4) |
100.0% |
97.6% |
Time
charter equivalent(5) |
$11,396 |
$13,564 |
Vessel operating expenses (daily)(6) |
$5,051 |
$6,325 |
|
|
|
Tanker |
Three Months Ended March 31, |
|
2013 |
2014 |
Average number of vessels(1) |
9.4 |
10.0 |
Total
voyage days for vessels(2) |
848 |
900 |
Total
calendar days for vessels(3) |
848 |
900 |
Fleet
utilization(4) |
100.0% |
100.0% |
Time
charter equivalent(5) |
$12,792 |
$24,781 |
Vessel operating expenses (daily)(6) |
$9,134 |
$7,144 |
|
|
|
(1) Average number of vessels is the number of vessels that
constituted our fleet for the relevant period, as measured by the
sum of the number of days each vessel was a part of our fleet
during the period divided by the number of calendar days in that
period. (2) Total voyage days for fleet are the total days the
vessels were in our possession for the relevant period net of
dry-docking days. (3) Calendar days are the total number of days
the vessels were in our possession for the relevant period
including dry-docking days. (4) Fleet utilization is the percentage
of time that our vessels were available for revenue generating
voyage days, and is determined by dividing voyage days by fleet
calendar days for the relevant period. (5) Time charter equivalent,
or TCE, is a measure of the average daily revenue performance of a
vessel on a per voyage basis. Our method of calculating TCE is
consistent with industry standards and is determined by dividing
voyage revenues (net of voyage expenses) by voyage days for the
relevant time period. Voyage expenses primarily consist of port,
canal and fuel costs that are unique to a particular voyage and are
paid by the charterer under a time charter contract, as well as
commissions. TCE revenues, a non-U.S. GAAP measure, provides
additional meaningful information in conjunction with revenues from
our vessels, the most directly comparable U.S. GAAP measure,
because it assists our management in making decisions regarding the
deployment and use of its vessels and in evaluating their financial
performance. TCE is also a standard shipping industry performance
measure used primarily to compare period-to-period changes in a
shipping company's performance despite changes in the mix of
charter types (i.e., spot charters, time charters and bareboat
charters) under which the vessels may be employed between the
periods. Please see below for a reconciliation of TCE rates to
voyage revenues. (6) Daily vessel operating expenses, which
includes crew costs, provisions, deck and engine stores,
lubricating oil, insurance, maintenance and repairs is calculated
by dividing vessel operating expenses by fleet calendar days for
the relevant time period.
(In thousands of
U.S. dollars, except for TCE rate, which is expressed in Dollars,
and voyage days)
|
|
|
Drybulk |
Three Months Ended March 31, |
|
|
2013 |
|
|
2014 |
|
Voyage revenues |
$ |
45,482 |
|
|
$ |
53,408 |
|
Voyage expenses |
|
(8,558 |
) |
|
|
(8,132 |
) |
Time
charter equivalent revenues |
$ |
36,924 |
|
|
$ |
45,276 |
|
Total
voyage days for fleet |
|
3,240 |
|
|
|
3,338 |
|
Time
charter equivalent TCE |
$ |
11,396 |
|
|
$ |
13,564 |
|
|
|
|
|
|
|
|
|
Tanker |
Three Months Ended March 31, |
|
|
2013 |
|
|
2014 |
|
Voyage revenues |
$ |
27,787 |
|
|
$ |
43,314 |
|
Voyage expenses |
|
(16,939 |
) |
|
|
(21,011 |
) |
Time
charter equivalent revenues |
$ |
10,848 |
|
|
$ |
22,303 |
|
Total
voyage days for fleet |
|
848 |
|
|
|
900 |
|
Time
charter equivalent TCE |
$ |
12,792 |
|
|
$ |
24,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DryShips Inc. |
|
|
|
Financial
Statements |
|
Unaudited
Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
(Expressed in Thousands of U.S. Dollars except for share and per
share data) |
Three Months Ended March 31, |
|
|
2013 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
Voyage revenues |
$ |
73,269 |
|
|
$ |
96,722 |
|
Drilling revenues, net |
|
246,444 |
|
|
|
360,764 |
|
|
|
319,713 |
|
|
|
457,486 |
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
|
25,497 |
|
|
|
29,143 |
|
Vessel operating expenses |
|
24,110 |
|
|
|
28,063 |
|
Drilling rigs and drillships operating expenses |
|
120,759 |
|
|
|
151,515 |
|
Depreciation and amortization |
|
82,660 |
|
|
|
107,277 |
|
Vessel impairments and other, net |
|
75,340 |
|
|
|
- |
|
General and administrative expenses |
|
36,247 |
|
|
|
49,091 |
|
Legal
settlements and other, net |
|
(15 |
) |
|
|
1,604 |
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
(44,885 |
) |
|
|
90,793 |
|
|
|
|
|
|
|
|
|
OTHER
INCOME / (EXPENSES): |
|
|
|
|
|
|
|
Interest and finance costs, net of interest income |
|
(56,862 |
) |
|
|
(114,251 |
) |
Gain/
(Loss) on interest rate swaps |
|
396 |
|
|
|
(2,775 |
) |
Other, net |
|
678 |
|
|
|
(104 |
) |
Income taxes |
|
(14,164 |
) |
|
|
(8,791 |
) |
Total
other expenses, net |
|
(69,952 |
) |
|
|
(125,921 |
) |
|
|
|
|
|
|
|
|
Net
loss |
|
(114,837 |
) |
|
|
(35,128 |
) |
|
|
|
|
|
|
|
|
Net
(income)/ loss attributable to Non controlling interests |
|
(1,798 |
) |
|
|
577 |
|
|
|
|
|
|
|
|
|
Net
loss attributable to Dryships Inc. |
$ |
(116,635 |
) |
|
$ |
(34,551 |
) |
|
|
|
|
|
|
|
|
Loss
per common share, basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.08 |
) |
Weighted average number of shares, basic and diluted |
|
382,657,244 |
|
|
|
409,609,554 |
|
|
|
|
|
|
|
|
|
|
|
DryShips Inc. |
Unaudited Condensed Consolidated
Balance Sheets |
|
(Expressed in Thousands of U.S. Dollars) |
December 31, 2013 |
|
March 31, 2014 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash,
cash equivalents and restricted cash (current and non-current) |
$ |
739,312 |
|
$ |
887,616 |
|
Other
current assets |
|
494,887 |
|
|
597,559 |
|
Advances for vessels and drillships under construction and related
costs |
|
679,008 |
|
|
352,575 |
|
Vessels, net |
|
2,249,087 |
|
|
2,218,886 |
|
Drilling rigs, drillships, machinery and equipment, net |
|
5,828,231 |
|
|
6,515,413 |
|
Other
non-current assets |
|
133,167 |
|
|
141,366 |
|
Total
assets |
|
10,123,692 |
|
|
10,713,415 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt |
|
5,568,003 |
|
|
5,976,270 |
|
Total
other liabilities |
|
723,991 |
|
|
848,549 |
|
Total
stockholders' equity |
|
3,831,698 |
|
|
3,888,596 |
|
Total
liabilities and stockholders' equity |
$ |
10,123,692 |
|
$ |
10,713,415 |
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation
Adjusted EBITDA represents earnings before interest, taxes,
depreciation and amortization, vessel impairments, dry-dockings and
class survey costs and gains or losses on interest rate swaps.
Adjusted EBITDA does not represent and should not be considered as
an alternative to net income or cash flow from operations, as
determined by United States generally accepted accounting
principles, or U.S. GAAP, and our calculation of adjusted EBITDA
may not be comparable to that reported by other companies. Adjusted
EBITDA is included herein because it is a basis upon which the
Company measures its operations. Adjusted EBITDA is also used by
our lenders as a measure of our compliance with certain covenants
contained in our loan agreements and because the Company believes
that it presents useful information to investors regarding a
company's ability to service and/or incur indebtedness.
The following table reconciles net loss to Adjusted EBITDA:
|
|
|
|
|
|
(Dollars in thousands) |
Three Months Ended March 31, 2013 |
|
|
Three Months Ended March 31, 2014 |
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(116,635 |
) |
|
$ |
(34,551 |
) |
|
|
|
|
|
|
|
|
Add:
Net interest expense |
|
56,862 |
|
|
|
114,251 |
|
Add:
Depreciation and amortization |
|
82,660 |
|
|
|
107,277 |
|
Add:
Impairment losses and other |
|
75,340 |
|
|
|
- |
|
Add:
Dry-dockings and class survey costs |
|
- |
|
|
|
2,659 |
|
Add:
Income taxes |
|
14,164 |
|
|
|
8,791 |
|
Add:
Gain/(loss) on interest rate swaps |
|
(396 |
) |
|
|
2,775 |
|
Adjusted EBITDA |
$ |
111,995 |
|
|
$ |
201,202 |
|
|
|
|
|
|
|
|
|
Conference Call and Webcast: May 23, 2014
As announced, the Company's management team will host a
conference call on Friday, May 23, 2014 at 9:00 a.m. Eastern
Daylight Time to discuss the Company's financial results.
Conference Call Details
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1(866) 819-7111 (from
the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301
(from outside the US). Please quote "DryShips."
A replay of the conference call will be available until May 30,
2014. The United States replay number is 1(866) 247- 4222; from the
UK 0(800) 953-1533; the standard international replay number is
(+44) (0) 1452 55 00 00 and the access code required for the replay
is: 2133051#.
A replay of the conference call will also be available on the
Company's website at www.dryships.com under the Investor Relations
section.
Slides and Audio Webcast
There will also be a simultaneous live webcast over the
Internet, through the DryShips Inc. website (www.dryships.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About DryShips Inc.
DryShips Inc. is an owner of drybulk carriers and tankers that
operate worldwide. Through its majority owned subsidiary, Ocean Rig
UDW Inc., DryShips owns and operates 13 offshore ultra deepwater
drilling units, comprising of 2 ultra deepwater semisubmersible
drilling rigs and 11 ultra deepwater drillships, 1 of which is
scheduled to be delivered to Ocean Rig during 2015, 1 of which is
scheduled to be delivered to Ocean Rig during 2016 and 2 of which
are scheduled to be delivered during 2017. DryShips owns a
fleet of 43 drybulk carriers (including newbuildings), comprising
13 Capesize, 28 Panamax and 2 Supramax with a combined deadweight
tonnage of approximately 4.6 million tons, and 10 tankers,
comprising 4 Suezmax and 6 Aframax, with a combined deadweight
tonnage of over 1.3 million tons.
DryShips' common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The Private Securities Litigation Reform Act of
1995 provides safe harbor protections for forward-looking
statements in order to encourage companies to provide prospective
information about their business. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with such safe harbor legislation.
Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical
facts.
The forward-looking statements in this release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, management's examination
of historical operating trends, data contained in our records and
other data available from third parties. Although we believe that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results
to differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies,
general market conditions, including changes in charterhire and
drilling dayrates and drybulk vessel, drilling rig and drillship
values, failure of a seller to deliver one or more drilling rigs,
drillships or drybulk vessels, failure of a buyer to accept
delivery of a drilling rig, drillship, or vessel, inability to
procure acquisition financing, default by one or more charterers of
our ships, changes in demand for drybulk commodities or oil,
changes in demand that may affect attitudes of time charterers and
customer drilling programs, scheduled and unscheduled drydockings
and upgrades, changes in our operating expenses, including bunker
prices, drydocking and insurance costs, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, domestic and
international political conditions, potential disruption of
shipping routes due to accidents and political events or acts by
terrorists.
Risks and uncertainties are further described in reports filed
by DryShips Inc. with the U.S. Securities and Exchange
Commission.
Investor Relations / Media: Nicolas Bornozis Capital Link, Inc.
(New York) Tel. 212-661-7566 E-mail: dryships@capitallink.com
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