Star Bulk Carriers Corp. Reports Financial Results for the First
Quarter Ended March 31, 2014
ATHENS, GREECE--(Marketwired - May 29, 2014) - Star Bulk
Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), a
global shipping company focusing on the transportation of dry bulk
cargoes, today announced its unaudited financial and operating
results for the first quarter ended March 31, 2014.
Financial
Highlights
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
3 months ended March 31, 2014 |
|
|
3 months ended March 31, 2013 |
Total Revenues |
|
$ |
20,179 |
|
|
$ |
18,439 |
EBITDA (1) |
|
$ |
5,175 |
|
|
$ |
7,122 |
Adjusted EBITDA (1) |
|
$ |
7,796 |
|
|
$ |
8,734 |
Net (loss) / income |
|
$ |
(878 |
) |
|
$ |
1,158 |
Adjusted Net income |
|
$ |
1,743 |
|
|
$ |
2,770 |
(Loss) / earnings per share basic and diluted |
|
$ |
(0.03 |
) |
|
$ |
0.21 |
Adjusted earnings per share basic and diluted |
|
$ |
0.06 |
|
|
$ |
0.51 |
Average Number of Vessels |
|
|
15.8 |
|
|
|
14.0 |
Time Charter Equivalent Rate (TCE) |
|
$ |
14,343 |
|
|
$ |
14,316 |
Average daily OPEX per vessel |
|
$ |
5,629 |
|
|
$ |
5,531 |
Average daily Net Cash G&A expenses per vessel (2) |
|
$ |
1,473 |
|
|
$ |
1,500 |
|
|
|
|
|
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|
|
(1) |
See the table at the back of this
release for a reconciliation of EBITDA and Adjusted EBITDA to Net
Cash Provided by Operating Activities, which is the most directly
comparable financial measure calculated and presented in accordance
with generally accepted accounting principles in the United States
("U.S. GAAP"). |
|
|
(2) |
Average daily Net Cash G&A expenses
per vessel is calculated by deducting Management fee Income from
General and administrative expenses (net of stock based
compensation expense) and then dividing with ownership
days. |
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|
Spyros Capralos, President and CEO of Star Bulk, commented:
"Despite the seasonally weak market in the first quarter of
2014, Star Bulk has reported an Adjusted Net Income of $1.7
million, while it continued the implementation of its fleet
expansion and operational optimization strategy. Within the first
quarter of 2014, we have taken delivery of 2 modern Post Panamax
vessels Star Vega and Star Sirius, chartered out for the next 2.5
years at above market rates, bringing our owned fleet to 17 vessels
currently in the water and 28 on a fully deployed basis.
We have also enhanced our internal commercial management
capabilities through the acquisition of a strategic minority stake
in Interchart Shipping. The substantial renewal and expansion of
our fleet, along with the continuous streamlining of our technical
and commercial operations, will allow us to capture the maximum
benefits from the shaping dry bulk market recovery.
We view the current freight market softness as short-lived
as it is mostly due to the temporary lack of Brazilian iron ore
exports and nickel ore, bauxite and grain trade disruptions. On the
other hand, the supply and demand fundamentals of dry bulk shipping
remain solid in our opinion. Chinese iron imports continue their
stellar growth pattern, as larger volumes of high quality and low
cost iron ore are becoming available for exports both in Pacific
and in the Atlantic market.
Finally, we are still of the opinion that the supply demand
balance for the dry bulk sector over the next two years looks
favourable."
Simos Spyrou, Chief Financial Officer of Star Bulk, commented:
"In the first quarter of 2014, we generated $1.7 million of
adjusted net income, or $0.06 per basic and diluted share, while
our total Adjusted Revenues net of Voyage Expenses, increased by
8%, as our 2 newly acquired Post Panamax vessels were delivered to
us during this quarter.
"On the costs' side, our operating expenses were
negatively impacted by an amount of $0.4 million related to
pre-delivery expenses for the 4 vessels we have taken delivery of
during the fourth quarter of 2013 and the first quarter of 2014. If
this amount was excluded, our average daily operating expenses per
vessel for the quarter amounted to $5,342 versus $5,531 during the
first quarter of 2013, that is a 3% year-over-year decrease.
Furthermore, even though the average number of our employees has
increased by 35% year-over-year, our average daily cash general and
administrative expenses per vessel, net of management fee income,
have been reduced to $1,473 versus $1,500 during the first quarter
of 2013.
"On the financing side, during the first quarter of
2014, we have drawn down a total of $74.0 million of new debt
related to the loan facilities for the acquisition of Star
Challenger, Star Fighter, Star Sirius and Star Vega. Furthermore,
we have been active in managing our floating interest rate exposure
by entering into a swap agreement with HSH Nordbank in order to
hedge forward for four years, at competitive terms, 50% of the
outstanding balance of the new $35.0 million loan facility,
starting from September 30, 2014. Coupled with a similar agreement
we have under the Credit Agricole facility, this will mitigate the
effect of any sharp adverse movements in interest rates in the
future, in light of the anticipated tightening of U.S. monetary
policy in 2015.
"Today, our total cash amounts to $57.8 million,
while our current debt is $255.1 million, implying a net debt
position of $197.3 million. During 2014, up to now, we have paid a
total of $9.2 million for scheduled principal debt repayments,
while we have a total of $13.2 million remaining for the rest of
the year.
"Regarding our capital expenditures, we have paid
$79.8 million in the form of advances for our 11 newbuilding
vessels, while we do not have any CAPEX requirements for the
remaining of 2014 and thus retain great flexibility in managing our
cash flows and overall liquidity. Assuming 60% debt financing upon
the delivery of our newbuilding vessels, our remaining equity CAPEX
stands at $77.2 and $15.7 million for 2015 and 2016
respectively."
Owned Fleet Profile (As
of May 29, 2014)
Vessel Name |
|
Type |
|
DWT |
|
Year Built |
Star Aurora |
|
Capesize |
|
171,199 |
|
2000 |
Star Big |
|
Capesize |
|
168,404 |
|
1996 |
Star Borealis |
|
Capesize |
|
179,678 |
|
2011 |
Star Mega |
|
Capesize |
|
170,631 |
|
1994 |
Star Polaris |
|
Capesize |
|
179,600 |
|
2011 |
Star Sirius |
|
Post panamax |
|
98,681 |
|
2011 |
Star Vega |
|
Post panamax |
|
98,681 |
|
2011 |
Star Challenger |
|
Ultramax |
|
61,462 |
|
2012 |
Star Fighter |
|
Ultramax |
|
61,455 |
|
2013 |
Star Cosmo |
|
Supramax |
|
52,247 |
|
2005 |
Star Delta |
|
Supramax |
|
52,434 |
|
2000 |
Star Epsilon |
|
Supramax |
|
52,402 |
|
2001 |
Star Gamma |
|
Supramax |
|
53,098 |
|
2002 |
Star Kappa |
|
Supramax |
|
52,055 |
|
2001 |
Star Omicron |
|
Supramax |
|
53,489 |
|
2005 |
Star Theta |
|
Supramax |
|
52,425 |
|
2003 |
Star Zeta |
|
Supramax |
|
52,994 |
|
2003 |
Total |
|
17 |
|
1,610,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuildings |
|
|
|
|
|
|
Vessel Name |
|
Type |
|
DWT |
|
Expected Delivery Date |
Hull 1372 |
|
Newcastlemax |
|
208,000 |
|
November 2015 |
Hull 1342 |
|
Newcastlemax |
|
208,000 |
|
January 2016 |
Hull 1371 |
|
Newcastlemax |
|
208,000 |
|
February 2016 |
Hull NE 198 |
|
Newcastlemax |
|
209,000 |
|
March 2016 |
Hull 1343 |
|
Newcastlemax |
|
208,000 |
|
April 2016 |
Hull 1338 |
|
Capesize |
|
180,000 |
|
October 2015 |
Hull 1339 |
|
Capesize |
|
180,000 |
|
January 2016 |
Hull 5040 |
|
Ultramax |
|
60,000 |
|
June 2015 |
Hull 5043 |
|
Ultramax |
|
60,000 |
|
September 2015 |
Hull NE 196 |
|
Ultramax |
|
61,000 |
|
October 2015 |
Hull NE 197 |
|
Ultramax |
|
61,000 |
|
November 2015 |
Total |
|
11 |
|
1,643,000 |
|
|
|
|
|
|
|
|
|
Total Owned Vessels |
|
28 |
|
3,253,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Party Vessels
Under Management (As of May 29, 2014)
Drybulk Vessels |
|
|
|
|
|
|
Vessel Name |
|
Type |
|
DWT |
|
Year Built |
Big Bang |
|
Capesize |
|
174,109 |
|
2007 |
Big Fish |
|
Capesize |
|
177,662 |
|
2004 |
Kymopolia |
|
Capesize |
|
176,990 |
|
2006 |
Obelix |
|
Capesize |
|
181,433 |
|
2011 |
Pantagruel |
|
Capesize |
|
180,181 |
|
2004 |
Amami |
|
Post panamax |
|
98,681 |
|
2011 |
Madredeus |
|
Post panamax |
|
98,681 |
|
2011 |
Mercurial Virgo |
|
Kamsarmax |
|
81,545 |
|
2011 |
Pendulum |
|
Kamsarmax |
|
82,619 |
|
2006 |
Marto |
|
Panamax |
|
74,470 |
|
2001 |
Renascentia |
|
Panamax |
|
74,732 |
|
1999 |
Maiden Voyage |
|
Supramax |
|
58,722 |
|
2012 |
Serenity I |
|
Supramax |
|
53,688 |
|
2006 |
Strange Attractor |
|
Supramax |
|
55,742 |
|
2006 |
|
|
|
|
|
|
|
Total |
|
14 |
|
1,569,255 |
|
|
|
|
|
|
|
|
|
Recent
Developments
- On April 1, 2014 we issued 22,598 shares of our common stock
pursuant to our agreement on February 25, 2014 to acquire 33% of
the total outstanding common stock of Interchart Shipping Inc,
("Interchart"), a Liberian company that acts as a chartering broker
to our fleet. As of the date of this press release, the number of
outstanding common shares of Star Bulk is 29,082,269.
- On April 28, 2014, we entered into two interest rate swap
agreements to fix forward 50% of our floating interest rate
liabilities regarding the $35.0 million bilateral term loan
facility with HSH Nordbank AG for the vessels Star Challenger and
Star Fighter, starting from September 30, 2014. Under the terms of
the swap agreements we will be paying on a quarterly basis a fixed
rate of 1.765% per annum, while we will be receiving a variable
amount equal to the 3 months U.S. LIBOR rate, both based upon the
notional amount of the swaps outstanding at each settlement
date.
First Quarter 2014 and
2013 Results (*)
For the first quarter of 2014, total voyage revenues amounted to
$19.4 million compared to $18.2 million for the first quarter of
2013. This 6% increase is mainly attributed to the higher average
number of vessels from 14 vessels in the first quarter of 2013 to
15.8 vessels in the first quarter of 2014. Management fee income
during the first quarter of 2014 increased to $0.8 million compared
to $0.2 million during the first quarter of 2013, due to the
increase in the average number of third party vessels under
management to 11.8 vessels in the first quarter of 2014 from 3.1
vessels in the first quarter of 2013.
For the first quarter of 2014, operating income amounted to $0.6
million compared to operating income of $3.0 million for the first
quarter of 2013. Net loss for the first quarter of 2014, amounted
to $0.9 million or $0.03 loss per basic and diluted share,
calculated on 28,849,559 shares, which was the weighted average
number of basic and diluted shares. Net income for the first
quarter of 2013 amounted to $1.2 million, or $0.21 earnings per
basic and diluted share, based on 5,406,306 and 5,406,373 weighted
average number of shares, respectively.
Net loss for the first quarter of 2014 includes the following
non-cash items:
- Amortization of fair value of above market acquired time
charters of $1.6 million, or $0.05 per basic and diluted share,
associated with time charters attached to vessels acquired in the
third quarter of 2011, namely Star Big and Star
Mega, and which are amortized over their remaining period as a
decrease to voyage revenues.
- Expenses of $0.9 million, or $0.03 per basic and diluted share,
relating to the amortization of stock based compensation recognized
in connection with the shares issued to directors and
employees.
- Unrealized loss of $0.2 million, or $0.01 per basic and diluted
share, in connection with the mark to market valuation of the
Company's derivatives.
Excluding these non-cash items, net income for the first quarter
of 2014 would amount to $1.7 million, or $0.06 earnings per basic
and diluted share.
Net income for the first quarter of 2013 includes the following
non-cash items:
- Amortization of fair value of above market acquired time
charters of $1.6 million, or $0.29 per basic and diluted share,
associated with time charters attached to vessels acquired in the
third quarter of 2011, namely Star Big and Star
Mega, which time charters are amortized over the remaining
period of the time charter as a decrease to voyage revenues.
- Expenses of $0.05 million, or $0.01 per basic and diluted
share, relating to the amortization of stock based compensation
recognized in connection with the shares issued to directors and
employees.
Excluding these non-cash items, net income for the first quarter
of 2013 would amount to $2.8 million, or $0.51 earnings per basic
and diluted share, based on 5,406,306 and 5,406,373 weighted
average number of shares, basic and diluted, respectively.
Adjusted EBITDA for the first quarter of 2014 and 2013,
excluding the above items, was $7.8 million and $8.7 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 15.8 and 14.0 vessels during
the first quarter of 2014 and 2013 respectively, which earned an
average Time Charter Equivalent, or TCE, rate of $14,343 per day
and $14,316 per day respectively. We refer you to the information
under the heading "Summary of Selected Data" below in this earnings
release for information regarding our calculation of TCE rates.
For the first quarter of 2014, voyage expenses amounted to $2.4
million compared to $2.6 million for the first quarter of 2013.
For the first quarter of 2014 and 2013, vessel operating
expenses totalled $8.0 million and $7.0 million respectively. The
increase in operating expenses is mainly due to higher average
number of vessels from 14 vessels in the first quarter of 2013 to
15.8 vessels in the first quarter of 2014. In addition, the vessel
operating expenses of the first quarter of 2014 include an amount
of $0.4 million related to one time, pre-delivery and pre-joining
expenses incurred in connection with the delivery of the Star
Challenger, Star Fighter, Star Sirius and Star Vega. Excluding this
amount, vessel operating expenses for the first quarter of 2014
would amount to $7.6 million. Excluding this amount, our average
daily operating expenses per vessel for the first quarter of 2014
were $5,342 versus $5,531 during the first quarter of 2013,
representing a 3% reduction.
Dry-docking expenses for the first quarter of 2014 and 2013
amounted to $0.7 million and $0.3 million respectively. During the
first quarter of 2014, one of our Supramax vessels, Star Epsilon,
underwent its periodic dry-docking survey, in mid-March 2014. The
amount of $0.5 million included in the first quarter of 2014,
refers to the allocated portion of dry-docking cost for this
vessel, which is estimated to reach approximately $1.0 million in
total. During the first quarter of 2013, none of our vessels
underwent dry-docking survey.
Depreciation expense increased to $4.7 million for the first
quarter of 2014, compared to $4.2 million for the first quarter of
2013. The increase was due to higher average number of vessels,
from 14.0 vessels in the first quarter of 2013, to 15.8 vessels in
the first quarter of 2014.
General and administrative expenses, during the first quarter of
2014 increased to $3.8 million, compared to $2.1 million during the
first quarter of 2013. This increase was due to higher stock based
compensation expense by $0.9 million in the first quarter of 2014
compared to the same period in 2013. In addition, the average
number of employees increased by 35% during the first quarter of
2014 compared to the same period in 2013, due to the increase in
the average number of third party vessels under management from 3.1
vessels in the first quarter of 2013 to 11.8 vessels in the first
quarter of 2014 and due to the increase in the average number of
owned vessels from 14.0 vessels in the first quarter of 2013 to
15.8 vessels in the first quarter of 2014. This translates into
$1,473 average daily net cash G&A expenses per vessel in the
first quarter of 2014, versus $1,500 average daily net cash G&A
expenses per vessel in the first quarter of 2013.
Other operational gain amounting to $0.2 million during the
first quarter of 2014 represents a gain derived from a hull and
machinery claim. Other operational gain amounted to $0.9 million
during the first quarter of 2013 and mainly consisted of
non-recurring revenue of $0.5 million, which represented the
payment of installments due to us under settlement agreements for
two commercial claims and a gain of $0.4 million regarding a hull
and machinery claim.
For the first quarter of 2014, other operational loss amounted
to $0.1 million. In September 2010, we signed an agreement to sell
a 45% interest in the future proceeds related to the settlement of
certain commercial claims. As a result, in connection to the
settlement amount of $0.5 million described in other operational
gain above, during the first quarter of 2013, we incurred an
expense of $0.2 million, which is included under other operational
loss.
In June 2013, we entered into an interest rate swap agreements
to fix forward our floating interest rate liabilities for the $70.0
million bilateral term loan facility with Credit Agricole CIB, for
the vessels Star Polaris and Star Borealis. The
non-cash loss from the mark to market valuation of this swap
agreement for the first quarter of 2014 amounted to $0.2 million
and is included under loss on derivative financial instruments.
During the first quarter of 2013 we had not entered into any
derivative agreement and therefore no loss on derivative financial
instruments was recorded.
For the first quarter of 2014, interest and finance costs
decreased by $0.5 million to $1.4 million, compared to $1.9 million
for the first quarter of 2013. The decrease is mainly attributable
to interest capitalized from general debt during the first quarter
of 2014, amounting to $0.6 million, in relation with advances paid
for our eleven newbuildings.
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|
(*) |
Amounts relating to variations in
period-on-period comparisons shown in this section are
derived from the actual numbers in our books and records |
|
|
Liquidity and Capital
Resources
Cash Flows Net
cash provided by operating activities for the first quarter of 2014
and 2013, was $1.5 million and $9.0 million, respectively. TCE rate
for the first quarter of 2014 and 2013 was $14,343 and $14,316,
respectively. Although the TCE rate remained almost at the same
level, the decrease in net cash provided by operating activities
for the first quarter of 2014 of $7.5 million was a result of the
following a) recorded net loss amounting to $0.9 million for the
first quarter of 2014 compared to net income of $1.2 million for
the first quarter of 2013 and b) negative movement in working
capital of $5.0 million during the first quarter of 2014 compared
to positive movement of $2.3 million during the first quarter of
2013, offset by the increase of $1.7 million in total revenues
during the first quarter of 2014. Both voyage revenues and
management fee income increased, due to higher average number of
owned vessels and higher average number of third party vessels
under our management, respectively, in first quarter of 2014
compared to first quarter of 2013.
Net cash used in investing activities for the first quarter of
2014 was $76.7 million. Net cash provided by investing activities
for the first quarter 2013 was $9.1 million. For the first quarter
of 2014, net cash used in investing activities consisted of $73.0
million paid for advances for our eleven newbuilding vessels,
acquisitions of second hand vessels and other fixed assets and a
net increase of $4.1 million in restricted cash, offset by
insurance proceeds amounting to $0.3 million. For the first quarter
of 2013, net cash provided by investing activities consisted of
$1.8 million representing the 20% advance received based on the
agreement signed in March 2013 to sell the vessel Star
Sigma, which was delivered to its purchaser on April 10, 2013,
a decrease of $6.5 million in restricted cash and insurance
proceeds amounting to $1.2 offset by additions to vessels cost and
other fixed assets amounting to $0.4 million.
Net cash provided by financing activities for the first quarter
of 2014 was $68.6 million. Net cash used in financing activities
for the first quarter of 2013 was $12.7 million. For the first
quarter of 2014, net cash provided by financing activities
consisted of loan proceeds amounting to $74.0 million, financing
fees paid amounting to $0.9 million and loan installment payments
amounting to $4.5 million. For the first quarter of 2013, net cash
used in financing activities represents loan installment
payments.
Summary of Selected
Data
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|
|
|
|
|
|
(TCE rates expressed in U.S. dollars) |
|
|
|
|
|
|
|
|
3 months ended |
|
|
3 months ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
Average number of vessels (1) |
|
|
15.8 |
|
|
|
14.0 |
|
Number of vessels (2) |
|
|
17 |
|
|
|
14 |
|
Average age of operational fleet (in years) (3) |
|
|
9.0 |
|
|
|
11.1 |
|
Ownership days (4) |
|
|
1,422 |
|
|
|
1,260 |
|
Available days (5) |
|
|
1,403 |
|
|
|
1,260 |
|
Voyage days for fleet (6) |
|
|
1,290 |
|
|
|
1,201 |
|
Fleet utilization (7) |
|
|
91.9 |
% |
|
|
95.3 |
% |
Average daily TCE rate (8) |
|
$ |
14,343 |
|
|
$ |
14,316 |
|
Average daily OPEX per vessel (9) |
|
$ |
5,629 |
|
|
$ |
5,531 |
|
Average daily Net Cash G&A expenses per vessel (10) |
|
$ |
1,473 |
|
|
$ |
1,500 |
|
|
|
(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) |
As of the last day of the periods
reported. |
|
|
(3) |
Average age of operational fleet is
calculated as at March 31, 2014 and 2013, respectively. |
(4) |
Ownership days are the total calendar
days each vessel in the fleet was owned by the Company for
the relevant period. |
(5) |
Available days for the fleet are the
ownership days after subtracting for off-hire days with major
repairs, dry-docking or special or intermediate surveys. |
(6) |
Voyage days are the total days the
vessels were in our possession for the relevant period after
subtracting all off-hire days incurred for any reason (including
off-hire for dry-docking, major repairs, special or intermediate
surveys). |
(7) |
Fleet utilization is calculated by
dividing voyage days by available days for the relevant
period. |
(8) |
Represents the weighted average daily
TCE rates, of our entire fleet. TCE rate is a measure of the
average daily revenue performance of a vessel on a per voyage
basis. Our method of calculating TCE rate is determined by dividing
voyage revenues (net of voyage expenses and amortization of fair
value of above/below market acquired time charter agreements) 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, which would otherwise be paid by the charterer
under a time charter contract, as well as commissions. TCE rate is
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. We included TCE
revenues, a non- GAAP measure, as it provides additional meaningful
information in conjunction with voyage revenues, the most directly
comparable GAAP measure, because it assists our management in
making decisions regarding the deployment and use of its vessels
and in evaluating their financial performance. |
(9) |
Average daily OPEX per vessel is
calculated by dividing Vessel operating expenses by ownership
days. |
(10) |
Average daily Net Cash G&A expenses
per vessel is calculated by deducting Management Fee Income from
General and administrative expenses (net of stock based
compensation expense) and then dividing with ownership
days. |
|
|
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|
|
Unaudited Consolidated
Condensed Statement of Operations
(Expressed in thousands of U.S. dollars except for share and
per share data) |
|
3 months ended March 31, 2014 |
|
|
3 months ended March 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
Voyage Revenues |
|
19,381 |
|
|
18,230 |
|
Management Fee Income |
|
798 |
|
|
209 |
|
Total revenues |
|
20,179 |
|
|
18,439 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
Voyage expenses |
|
(2,445 |
) |
|
(2,603 |
) |
Vessel operating expenses |
|
(8,005 |
) |
|
(6,969 |
) |
Dry-docking expenses |
|
(690 |
) |
|
(272 |
) |
Depreciation |
|
(4,679 |
) |
|
(4,153 |
) |
General and administrative expenses |
|
(3,790 |
) |
|
(2,145 |
) |
Other operational gain |
|
169 |
|
|
897 |
|
Other operational loss |
|
(90 |
) |
|
(225 |
) |
|
|
|
|
|
|
|
Operating income |
|
649 |
|
|
2,969 |
|
|
|
|
|
|
|
|
Interest and finance costs |
|
(1,363 |
) |
|
(1,875 |
) |
Interest and other income / (expenses) |
|
(11 |
) |
|
64 |
|
Loss on derivative financial instruments |
|
(158 |
) |
|
- |
|
Total other expenses, net |
|
(1,532 |
) |
|
(1,811 |
) |
|
|
|
|
|
|
|
(Loss) / income before equity in income of investee |
|
|
|
|
|
|
Equity in income of investee |
|
5 |
|
|
- |
|
|
|
|
|
|
|
|
Net (loss) / income |
|
(878 |
) |
|
1,158 |
|
|
|
|
|
|
|
|
(Loss) / earnings per share, basic |
|
(0.03 |
) |
|
0.21 |
|
(Loss) / earnings per share, diluted |
|
(0.03 |
) |
|
0.21 |
|
Weighted average number of shares outstanding, basic |
|
28,849,559 |
|
|
5,406,306 |
|
Weighted average number of shares outstanding, diluted |
|
28,849,559 |
|
|
5,406,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated
Condensed Balance Sheets
(Expressed in thousands of U.S. dollars) |
|
ASSETS |
|
March 31, 2014 |
|
December 31, 2013 |
Cash and restricted cash * |
|
40,134 |
|
46,160 |
Other current assets |
|
14,357 |
|
8,269 |
TOTAL CURRENT ASSETS |
|
54,491 |
|
54,429 |
|
|
|
|
|
Advances for vessels under construction and acquisition of vessels
and other assets |
|
80,605 |
|
67,932 |
Vessels and other fixed assets, net |
|
382,295 |
|
326,674 |
Long-term investment |
|
527 |
|
- |
Restricted cash * |
|
13,370 |
|
9,870 |
Fair value of above market acquired time charter |
|
6,412 |
|
7,978 |
Other non-current assets |
|
1,901 |
|
1,205 |
TOTAL ASSETS |
|
539,601 |
|
468,088 |
|
|
|
|
|
Current portion of long-term debt |
|
26,999 |
|
18,286 |
Other current liabilities |
|
13,258 |
|
11,448 |
TOTAL CURRENT LIABILITIES |
|
40,257 |
|
29,734 |
|
|
|
|
|
Long-term debt |
|
232,877 |
|
172,048 |
Other non-current liabilities |
|
342 |
|
200 |
TOTAL LIABILITIES |
|
273,476 |
|
201,982 |
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
266,125 |
|
266,106 |
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
539,601 |
|
468,088 |
|
|
|
|
|
* |
As of March 31, 2014, we had $53,504
thousand in cash which included $37,686 thousand free cash and
$15,818 thousand restricted cash. Restricted cash consisted of
$7,318 thousand deposited in pledged accounts and $8,500 thousand
free minimum liquidity required by our loan agreements. |
|
|
|
|
|
|
Unaudited Cash Flow
Data
|
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars) |
|
3 months ended March 31, 2014 |
|
|
3 months ended March 31, 2013 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
1,502 |
|
|
8,977 |
|
|
|
|
|
|
|
|
Net cash (used in)/provided by investing activities |
|
(76,741 |
) |
|
9,123 |
|
|
|
|
|
|
|
|
Net cash provided by/(used in) financing activities |
|
68,627 |
|
|
(12,738 |
) |
|
|
|
|
|
|
|
EBITDA and adjusted
EBITDA Reconciliation
We consider EBITDA to represent net income before interest,
income taxes, depreciation and amortization. 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 EBITDA may not be comparable to that reported by
other companies. EBITDA is included herein because it is a basis
upon which we assess our liquidity position, it is used by our
lenders as a measure of our compliance with certain loan covenants
and because we believe that it presents useful information to
investors regarding our ability to service and/or incur
indebtedness.
We excluded amortization of the fair value of above market
acquired time charters associated with time charters attached to
vessels acquired, non-cash loss related to sale of vessel, change
in fair value of derivatives and stock-based compensation expense
recognized during the period, to derive adjusted EBITDA. We
excluded the above non-cash items to derive adjusted EBITDA,
because we believe that these non-cash items do not reflect the
operational cash inflows and outflows of our fleet.
The following table reconciles net cash provided by operating
activities to EBITDA and adjusted EBITDA:
|
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars) |
|
3 months ended March 31, 2014 |
|
|
3 months ended March 31, 2013 |
|
Net cash provided by operating activities |
|
1,502 |
|
|
8,977 |
|
Net decrease / (increase) in current assets |
|
6,237 |
|
|
(5,142 |
) |
Net (decrease) / increase in operating liabilities, excluding
current portion of long term debt |
|
(1,283 |
) |
|
2,845 |
|
Amortization of fair value of above market acquired time charter
agreements |
|
(1,566 |
) |
|
(1,566 |
) |
Other non-cash charges |
|
(75 |
) |
|
(8 |
) |
Amortization of deferred finance charges |
|
(128 |
) |
|
(146 |
) |
Stock - based compensation |
|
(897 |
) |
|
(46 |
) |
Change in fair value of derivatives |
|
(158 |
) |
|
- |
|
Total other expenses, net |
|
1,374 |
|
|
1,811 |
|
Gain from Hull & Machinery claim |
|
169 |
|
|
397 |
|
EBITDA |
|
5,175 |
|
|
7,122 |
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of fair value of above market acquired time charter
agreements |
|
1,566 |
|
|
1,566 |
|
Stock-based compensation |
|
897 |
|
|
46 |
|
Change in fair value of derivatives |
|
158 |
|
|
- |
|
Adjusted EBITDA |
|
7,796 |
|
|
8,734 |
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call to discuss our
financial results today, May 29th at 11 a.m., Eastern Time
(ET).
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 "Star Bulk."
A replay of the conference call will be available until June 5,
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 550 000 and the access code required for the replay
is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast over the
Internet, through the Star Bulk website (www.starbulk.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About Star Bulk
Star Bulk is a global shipping company providing worldwide
seaborne transportation solutions in the dry bulk sector. Star
Bulk's vessels transport major bulks, which include iron ore, coal
and grain and minor bulks which include bauxite, fertilizers and
steel products. Star Bulk was incorporated in the Marshall Islands
on December 13, 2006 and maintains executive offices in Athens,
Greece. Its common stock trades on the Nasdaq Global Select Market
under the symbol "SBLK". Star Bulk has an operating fleet of
seventeen dry bulk carriers, consisting of five Capesize, two Post
Panamax, two Ultramax and eight Supramax dry bulk vessels with a
combined cargo carrying capacity of 1,610,935 deadweight tons and
an average age of approximately 9.0 years. In addition, Star Bulk
provides vessel management services to fourteen third party dry
bulk vessels, including five Capesize, two Post Panamax, two
Kamsarmax, two Panamax and three Supramax vessels with a combined
cargo carrying capacity of 1,569,255 deadweight tons. We have also
entered into agreements for the construction of eleven fuel
efficient dry bulk vessels, consisting of five Newcastlemax
vessels, two Capesize vessels and four Ultramax vessels, with a
combined cargo carrying capacity of 1,643,000 deadweight tons. All
of the newbuilding vessels are expected to be delivered during 2015
and early 2016.
Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. 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.
Forward-looking statements 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 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 this
safe harbor legislation. The words "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements.
The forward-looking statements in this press release are based
upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, examination by
the Company's management of historical operating trends, data
contained in its records and other data available from third
parties. Although the Company believes 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 the Company's
control, the Company cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors
that, in the Company's 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 fluctuations in charter rates and
vessel values, changes in demand for dry bulk shipping capacity,
changes in the Company's operating expenses, including bunker
prices, drydocking and insurance costs, the market for the
Company's vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion
of these and other risks and uncertainties. The information set
forth herein speaks only as of the date hereof, and the Company
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
Contacts: Company: Simos Spyrou CFO Star Bulk Carriers Corp. c/o
Star Bulk Management Inc. 40 Ag. Konstantinou Av. Maroussi 15124
Athens, Greece www.starbulk.com Investor Relations / Financial
Media: Nicolas Bornozis President Capital Link, Inc. 230 Park
Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail:
starbulk@capitallink.com www.capitallink.com
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