Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the
“Company”) today reported its results for the three months ended
March 31, 2017.
Results for the Three Months Ended
March 31, 2017 and 2016
For the first quarter of 2017 the Company’s GAAP
net loss was $34.6 million, or $0.48 loss per diluted share.
For the same period in 2016 the Company’s GAAP net loss was $58.3
million, or $1.96 loss per diluted share.
For the first quarter of 2017, the Company’s
adjusted net loss was $16.4 million or $0.23 adjusted loss per
diluted share, which excludes a write down of assets held for sale
of $17.7 million, and a write off of deferred financing costs on
the credit facility related to those specific vessels of $0.5
million. For the first quarter of 2016, the Company’s
adjusted net loss was $33.4 million or $1.12 adjusted loss per
diluted share, which excludes a write down of assets held for sale
of $12.4 million, the write off of deferred financing costs of $2.5
million and a charterhire contract termination fee of $10.0 million
(see Non-GAAP Financial Measures below).
Cash and Cash Equivalents
As of April 19, 2017, the Company had
approximately $135.3 million in cash and cash equivalents.
TCE Revenue
TCE Revenue Earned during the First Quarter of
2017
- Our Kamsarmax fleet earned $9,164 per day
- Our Ultramax fleet earned $8,230 per day
Voyages Fixed thus far in the Second Quarter of 2017
- Kamsarmax fleet: approximately $9,914 per day for 59% of the
days
- Ultramax fleet: approximately $8,852 per day for 57% of the
days
Recent Significant Events
Agreement for the Sale of Vessels
During the first quarter of 2017, we entered
into agreements with an unaffiliated third party to sell the SBI
Charleston and SBI Cakewalk, two 2014 built Kamsarmax vessels, for
approximately $22.5 million each.
As such, as of March 31, 2017, we classified
these vessels as held for sale, recorded a loss of $17.1 million
and wrote off $0.5 million of deferred financing costs. We also
classified the related debt of approximately $20.1 million as a
current liability. Net cash proceeds after paying off the
related debt, as well as the termination fees and commissions, is
approximately $24.2 million.
The sales are expected to be completed in the
second quarter of 2017.
Newbuilding Vessels Deliveries
During the first quarter of 2017, the Company
took delivery of the following newbuilding vessels:
- SBI Samson, an Ultramax vessel, delivered from Chengxi Shipyard
Co. Ltd.
- SBI Parapara, a Kamsarmax vessel, delivered from
Hudong-Zhonghua (Group) Co., Ltd.
- SBI Swing, a Kamsarmax vessel, delivered from Hudong-Zhonghua
(Group) Co., Ltd.
- SBI Phoenix, an Ultramax vessel, delivered from Chengxi
Shipyard Co. Ltd.
- SBI Mazurka, a Kamsarmax vessel, delivered from Hudong-Zhonghua
(Group) Co., Ltd.
Since April 1, 2017, the Company took delivery
of the final vessel in our newbuilding program:
- SBI Jive, a Kamsarmax vessel, delivered from Hudong-Zhonghua
(Group) Co., Ltd.
All 48 vessels in our newbuilding program have successfully been
delivered. As of March 31, 2017, all contracted amounts have
been paid in full and we have no further obligations due to any
shipyard.
Debt and Liquidity Overview
We made the following drawdowns, gross of any
simultaneous prepayments from our credit facilities during the
first quarter of 2017:
|
Credit Facility |
|
Drawdown Amount ($ thousands) |
|
Collateral |
1
|
$330 Million Credit
Facility |
|
$ |
12,000 |
|
|
SBI
Phoenix |
2
|
$330 Million Credit
Facility |
|
13,200 |
|
|
SBI
Swing |
3
|
$409 Million Credit
Facility |
|
13,200 |
|
|
SBI
Mazurka |
4
|
$330 Million Credit
Facility |
|
13,200 |
|
|
SBI
Jive |
The Company’s outstanding debt balance, gross of
unamortized deferred financing costs as of March 31, 2017 and
April 19, 2017 are as follows (dollars in thousands). The
Company expects to pay off the $39.6 Million Credit Facility in
full upon the completion of the sale of the two Kamsarmax
vessels.
|
Credit Facility |
|
Amount Outstanding |
|
|
Senior Notes |
|
$ |
73,625 |
|
|
|
$39.6 Million Credit
Facility |
|
20,144 |
|
|
|
$409 Million Credit
Facility |
|
179,473 |
|
|
|
$330 Million Credit
Facility |
|
263,122 |
|
|
|
$42 Million Credit
Facility |
|
38,512 |
|
|
|
$67.5 Million Credit
Facility |
|
40,461 |
|
|
|
$12.5 Million Credit
Facility |
|
10,379 |
|
|
|
$27.3 Million Credit
Facility |
|
19,375 |
|
|
|
Total |
|
$ |
645,091 |
|
|
The Company’s projected quarterly debt
repayments through 2019, including the repayment of debt on the two
Kamsarmaxes that we agreed to sell, is as follows (dollars in
thousands):
|
Q2 2017 |
(1 |
)
|
$ |
23,130 |
|
|
|
Q3 2017 |
|
6,130 |
|
|
|
Q4 2017 |
|
6,130 |
|
|
|
Q1 2018 |
|
6,130 |
|
|
|
Q2 2018 |
|
6,130 |
|
|
|
Q3 2018 |
|
6,130 |
|
|
|
Q4 2018 |
|
6,326 |
|
|
|
Q1 2019 |
|
6,326 |
|
|
|
Q2 2019 |
|
6,326 |
|
|
|
Q3 2019 |
(2 |
) |
79,951 |
|
|
|
Q4 2019 |
|
6,326 |
|
|
|
Total |
|
159,035 |
|
|
(1) |
Relates to payments
expected to be made from April 19, 2017 to June 30, 2017, including
$20.1 million in repayment of debt on the two Kamsarmaxes that we
agreed to sell. |
(2) |
Includes $73.6 million
repayment of Senior Notes due at maturity |
Financial Results for the Three Months Ended
March 31, 2017 Compared to the Three Months Ended
March 31, 2016
The Company had a GAAP net loss of $34.6
million, or $0.48 loss per diluted share for the first quarter of
2017 compared with a GAAP net loss of $58.3 million, or $1.96 loss
per diluted share for the first quarter of 2016.
Excluding a write down of assets held for sale
of $17.7 million and the write off of deferred financing costs on
the credit facility related to the vessels held for sale of $0.5
million, adjusted net loss for the first quarter of 2017 was $16.4
million or $0.23 adjusted loss per diluted share. Similarly,
excluding a write down of assets held for sale of $12.4 million,
the write off of deferred financing costs of $2.5 million and a
charterhire contract termination fee of $10.0 million, adjusted net
loss for the first quarter of 2016 was $33.4 million or $1.12
adjusted loss per diluted share (see Non-GAAP Financial Measures
below).
Time charter equivalent (TCE) revenue, a
Non-GAAP financial measure, is vessel revenues less voyage expenses
(including bunkers, port charges, broker fees and other
miscellaneous expenses that we are unable to recoup under time
charter and pool arrangements). TCE revenue is included herein
because it is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a shipping
company’s performance irrespective of changes in the mix of charter
types (i.e., spot charters, time charters, and pool charters), and
it provides useful information to investors and management.
TCE revenue was $34.6 million for the first
quarter of 2017 and is associated with a day weighted average of 47
vessels owned and one vessel time chartered-in compared to $10.2
million during the prior year quarter, which was associated with a
day weighted average of 31 vessels owned and seven vessels time
chartered-in. TCE revenue per day was $8,608 and $3,404 for the
first quarter of 2017 and 2016, respectively. TCE rates
continued the sequential quarter on quarter growth experienced
since recovering from the all-time lows experienced in the first
quarter of 2016. The increase in rates is attributable to
increased worldwide demand across all bulk sectors, regions and
commodities, as well as a diminishing supply side as fewer vessels
are now on order. Overall TCE revenue increased significantly
versus the prior year period due to the increase in rates combined
with the increase in revenue days associated with the growth of our
fleet.
Vessel operating costs were $21.8 million and
included approximately $1.1 million of takeover costs associated
with new deliveries, and $0.9 million of non-operating expenses and
related to 47 vessels owned, on average, during the period.
Takeover costs will be eliminated upon the delivery of the final
vessel in the second quarter of 2017. Vessel operating costs
for the prior year quarter were $15.3 million and related to 31
vessels owned, on average, during the period. Sequentially, daily
operating costs, excluding take over and other non-operating costs,
remained relatively flat at $5,019 in the first quarter of 2017
versus $5,037 in the fourth quarter of 2016. We expect that the per
day cost will decrease due to certain measures undertaken to
increase awareness and responsibility.
Charterhire expense decreased to $2.0 million in
the first quarter of 2017 from $8.5 million in the prior year
period, reflecting the reduction in the number of vessels time
chartered-in from seven vessels to one vessel, on a day weighted
average, respectively. We also recorded a charterhire
contract termination fee of $10.0 million to terminate four time
charter-in agreements during the first quarter of 2016. The
remaining time chartered-in vessel is expected to be redelivered in
July 2017.
Depreciation increased to $11.6 million in the
first quarter of 2017 from $7.3 million in the prior year period,
reflecting the increase in our weighted average vessels owned to 47
from 31.
General and administrative expense decreased
slightly to $7.7 million from $7.8 million in the prior year period
as decreases in restricted stock amortization, due to the run off
of awards granted at a higher fair value, were offset by an
increase in commercial management fees, primarily reflecting the
growth of our fleet.
During the first quarter of 2017, we recorded a
write down on assets held for sale of $17.1 million related to the
sale of two Kamsarmax vessels to an unaffiliated third party and
also recorded a $0.6 million adjustment related to vessels
previously sold. During the first quarter of 2016, the
Company recorded a write down of vessels and assets held for
sale of $12.4 million of which $11.6
million related to the cancellation of a shipbuilding contract
for a Kamsarmax bulk
carrier and $0.8 million in additional expenses
related to vessels held for sale at December 31, 2015.
During the first quarters of 2017 and 2016, we
wrote off $0.5 million and $2.5 million, respectively, of deferred
financing costs accumulated on credit facilities for which the
related vessels were sold or the commitments were otherwise
reduced.
Scorpio Bulkers Inc. and
Subsidiaries |
Consolidated Statements of
Operations |
(Amounts in thousands, except per share
data) |
|
|
|
Unaudited |
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
2016 |
|
Revenue: |
|
|
|
|
|
Vessel
revenue |
|
$ |
34,728 |
|
|
$ |
10,244 |
|
|
Operating
expenses: |
|
|
|
|
|
Voyage
expenses |
|
117 |
|
|
65 |
|
|
Vessel
operating costs |
|
21,801 |
|
|
15,315 |
|
|
Charterhire expense |
|
1,971 |
|
|
8,544 |
|
|
Charterhire contract termination charge |
|
— |
|
|
10,000 |
|
|
Vessel
depreciation |
|
11,582 |
|
|
7,292 |
|
|
General
and administrative expenses |
|
7,728 |
|
|
7,787 |
|
|
Loss /
write down on assets held for sale |
|
17,702 |
|
|
12,433 |
|
|
Total operating
expenses |
|
60,901 |
|
|
61,436 |
|
|
Operating
loss |
|
(26,173 |
) |
|
(51,192 |
) |
|
Other income
(expense): |
|
|
|
|
|
Interest
income |
|
262 |
|
|
93 |
|
|
Foreign
exchange gain (loss) |
|
(94 |
) |
|
(118 |
) |
|
Financial
expense, net |
|
(8,559 |
) |
|
(7,043 |
) |
|
Total other
expense |
|
(8,391 |
) |
|
(7,068 |
) |
|
Net
loss |
|
$ |
(34,564 |
) |
|
$ |
(58,260 |
) |
|
|
|
|
|
|
|
Loss per common share -
basic and diluted(1) |
|
$ |
(0.48 |
) |
|
$ |
(1.96 |
) |
|
Weighted-average shares
outstanding - basic and diluted(1) |
|
71,735 |
|
|
29,794 |
|
|
(1) |
|
Diluted weighted
average shares outstanding excludes the impact of restricted shares
for the three months ended March 31, 2017 and 2016, as the impact
would be anti-dilutive since the Company is in a net loss
position. |
Scorpio Bulkers Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(Dollars in thousands) |
|
|
|
Unaudited |
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
126,598 |
|
|
$ |
101,734 |
|
Accounts
receivable |
|
5,714 |
|
|
7,050 |
|
Prepaid
expenses and other current assets |
|
5,449 |
|
|
6,696 |
|
Assets
held for sale |
|
44,340 |
|
|
— |
|
Total current
assets |
|
182,101 |
|
|
115,480 |
|
Non-current assets |
|
|
|
|
Vessels,
net |
|
1,336,262 |
|
|
1,234,081 |
|
Vessels
under construction |
|
27,251 |
|
|
180,000 |
|
Deferred
financing costs, net |
|
3,857 |
|
|
3,307 |
|
Other
assets |
|
13,598 |
|
|
14,289 |
|
Total
non-current assets |
|
1,380,968 |
|
|
1,431,677 |
|
Total
assets |
|
$ |
1,563,069 |
|
|
$ |
1,547,157 |
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Bank
loans, net |
|
$ |
40,832 |
|
|
$ |
13,480 |
|
Accounts
payable and accrued expenses |
|
8,855 |
|
|
11,070 |
|
Total current
liabilities |
|
49,687 |
|
|
24,550 |
|
Non-current
liabilities |
|
|
|
|
Bank
loans, net |
|
515,076 |
|
|
493,793 |
|
Senior
Notes, net |
|
72,329 |
|
|
72,199 |
|
Total non-current
liabilities |
|
587,405 |
|
|
565,992 |
|
Total liabilities |
|
637,092 |
|
|
590,542 |
|
Shareholders’
equity |
|
|
|
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no
shares issued or outstanding |
|
— |
|
|
— |
|
Common stock, $0.01 par value per share; authorized 112,500,000
shares; issued and outstanding 75,309,486 and 75,298,676 shares as
of March 31, 2017 and December 31, 2016, respectively |
|
753 |
|
|
753 |
|
Paid-in
capital |
|
1,718,284 |
|
|
1,714,358 |
|
Accumulated deficit |
|
(793,060 |
) |
|
(758,496 |
) |
Total shareholders’
equity |
|
925,977 |
|
|
956,615 |
|
Total
liabilities and shareholders’ equity |
|
$ |
1,563,069 |
|
|
$ |
1,547,157 |
|
Scorpio Bulkers Inc. and
Subsidiaries |
Statements of Cash Flows
(unaudited) |
(Amounts in thousands) |
|
|
|
For the Three Months Ended March
31, |
|
|
2017 |
|
2016 |
Operating
activities |
|
|
|
|
Net loss |
|
$ |
(34,564 |
) |
|
$ |
(58,260 |
) |
Adjustment to
reconcile net loss to net cash used by operating
activities: |
|
|
|
|
Restricted stock amortization |
|
3,862 |
|
|
4,514 |
|
Vessel
depreciation |
|
11,582 |
|
|
7,292 |
|
Amortization of deferred financing costs |
|
1,360 |
|
|
834 |
|
Write off
of deferred financing costs |
|
470 |
|
|
2,456 |
|
Loss /
write down on assets held for sale |
|
16,471 |
|
|
10,555 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
Increase
(decrease) in accounts receivable |
|
1,337 |
|
|
(2,599 |
) |
(Decrease) increase in prepaid expenses and other current
assets |
|
(697 |
) |
|
4,500 |
|
(Decrease) increase in accounts payable and accrued expenses |
|
(1,556 |
) |
|
3,185 |
|
Net cash used
in operating activities |
|
(1,735 |
) |
|
(27,523 |
) |
Investing
activities |
|
|
|
|
Proceeds
from sale of assets held for sale |
|
— |
|
|
269,376 |
|
Payments
on assets held for sale |
|
— |
|
|
(98,445 |
) |
Payments
for vessels and vessels under construction |
|
(22,421 |
) |
|
(148,365 |
) |
Net cash used
in investing activities |
|
(22,421 |
) |
|
22,566 |
|
Financing
activities |
|
|
|
|
Proceeds
from issuance of common stock |
|
— |
|
|
60,703 |
|
Proceeds
from issuance of long-term debt |
|
51,600 |
|
|
106,843 |
|
Repayments of long-term debt |
|
(2,580 |
) |
|
(130,885 |
) |
Debt
issue costs paid |
|
— |
|
|
(1,819 |
) |
Net cash
provided by financing activities |
|
49,020 |
|
|
34,842 |
|
Increase in cash and
cash equivalents |
|
24,864 |
|
|
29,885 |
|
Cash at cash
equivalents, beginning of period |
|
101,734 |
|
|
200,300 |
|
Cash and cash
equivalents, end of period |
|
$ |
126,598 |
|
|
$ |
230,185 |
|
Scorpio Bulkers Inc. and
Subsidiaries |
Other Operating Data (unaudited) |
|
|
|
Three Months Ended March 31, 2017 |
|
Three Months Ended March 31, 2016 |
|
Time charter equivalent
revenue ($000’s) (1): |
|
|
|
|
|
Vessel
revenue |
|
$ |
34,728 |
|
|
$ |
10,244 |
|
|
Voyage
expenses |
|
(117 |
) |
|
(65 |
) |
|
Time
charter equivalent revenue |
|
$ |
34,611 |
|
|
$ |
10,179 |
|
|
Time charter equivalent
revenue attributable to: |
|
|
|
|
|
Kamsarmax |
|
$ |
14,900 |
|
|
$ |
4,360 |
|
|
Ultramax |
|
19,711 |
|
|
5,819 |
|
|
|
|
$ |
34,611 |
|
|
$ |
10,179 |
|
|
Revenue days: |
|
|
|
|
|
Kamsarmax |
|
1,626 |
|
|
1,309 |
|
|
Ultramax |
|
2,395 |
|
|
1,681 |
|
|
Combined |
|
4,021 |
|
|
2,990 |
|
|
TCE per revenue day
(1): |
|
|
|
|
|
Kamsarmax |
|
$ |
9,164 |
|
|
$ |
3,331 |
|
|
Ultramax |
|
$ |
8,230 |
|
|
$ |
3,462 |
|
|
Combined |
|
$ |
8,608 |
|
|
$ |
3,404 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
We define Time Charter
Equivalent (TCE) revenue as voyage revenues less voyage
expenses. Such TCE revenue, divided by the number of our
available days during the period, or revenue days, is TCE per
revenue day, which is consistent with industry standards. TCE
per revenue day is a common shipping industry performance measure
used primarily to compare daily earnings generated by vessels on
time charters with daily earnings generated by vessels on voyage
charters, because charter hire rates for vessels on voyage charters
are generally not expressed in per-day amounts while charter hire
rates for vessels on time charters generally are expressed in such
amounts.We report TCE revenue, a non-GAAP financial measure,
because (i) we believe it provides additional meaningful
information in conjunction with voyage revenues and voyage
expenses, the most directly comparable U.S.-GAAP measure,
(ii) it assists our management in making decisions regarding
the deployment and use of our vessels and in evaluating their
financial performance, (iii) it is a standard shipping
industry performance measure used primarily to compare
period-to-period changes in a shipping company’s performance
irrespective of 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, and (iv) we
believe that it presents useful information to investors. |
Fleet List as of April 19,
2017 |
|
Owned
vessels delivered from shipyards |
|
Vessel Name |
|
Year Built |
|
DWT |
|
Vessel Type |
SBI Cakewalk (1) |
|
2014 |
|
82,000 |
|
|
Kamsarmax |
SBI Charleston (1) |
|
2014 |
|
82,000 |
|
|
Kamsarmax |
SBI Samba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Rumba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Capoeira |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Electra |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Carioca |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Conga |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Flamenco |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Bolero |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Sousta |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Rock |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Lambada |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Reggae |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Zumba |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Macarena |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Parapara |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Mazurka |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Swing |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Jive |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
Total Kamsarmax |
|
|
|
1,644,000 |
|
|
|
|
|
|
|
|
|
|
SBI Antares |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Athena |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Bravo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Leo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Echo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Lyra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Tango |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Maia |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Hydra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Subaru |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Pegasus |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Ursa |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Thalia |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Cronos |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Orion |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Achilles |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Hercules |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Perseus |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Hermes |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Zeus |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hera |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hyperion |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Tethys |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Phoebe |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Poseidon |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Apollo |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Samson |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Phoenix |
|
2017 |
|
64,000 |
|
|
Ultramax |
Total Ultramax |
|
|
|
1,731,800 |
|
|
|
Total Owned Vessels DWT |
|
|
|
3,375,800 |
|
|
|
|
(1) |
Classified as
held for sale. |
Time chartered-in vessel
The Company currently has time
chartered-in one dry bulk vessel. The terms of the
contract is summarized as follows:
Vessel Type |
|
Year Built |
|
DWT |
|
Where Built |
|
Daily Base Rate |
|
Earliest Expiry |
Kamsarmax |
|
2012 |
|
82,000 |
|
|
South
Korea |
|
$ |
15,500 |
|
|
30-Jul-17 |
|
(1 |
) |
Total TC DWT |
|
|
|
82,000 |
|
|
|
|
|
|
|
|
|
|
(1) |
|
This vessel has been
time chartered-in for 39 to 44 months at the Company’s option at
$15,500 per day. The Company has the option to extend this
time charter for one year at $16,300 per day. The vessel was
delivered on April 23, 2014. |
Conference Call Details:
Thursday, April 20, 2017 at 9:00 AM Eastern Daylight Time /
3:00 PM Central European Time.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 1
(866) 219-5268 (U.S.) or 1 (703) 736-7424 (International). The
conference participant passcode is 7616205. The information
provided on the teleconference is only accurate at the time of the
conference call, and the Company will take no responsibility for
providing updated information.
Slides and Audio Webcast:
There will also be a simultaneous live webcast
over the internet, through the Scorpio Bulkers Inc. website
www.scorpiobulkers.com. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.Webcast
URL: http://edge.media-server.com/m/p/fevw4kr2
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine
transportation of dry bulk commodities. Upon completion of the
above mentioned sales, Scorpio Bulkers Inc. will own 46 vessels,
consisting of 18 Kamsarmax vessels and 28 Ultramax vessels. The
Company also time charters-in one dry bulk Kamsarmax vessel. The
owned fleet will have a total carrying capacity of approximately
3.2 million deadweight tonnes. Additional information about the
Company is available on the Company’s website
www.scorpiobulkers.com, which is not a part of this press
release.
Non-GAAP Financial Measures (unaudited)
This press release describes adjusted net loss
and related per share amounts, which is not a measure prepared in
accordance with GAAP. We believe the non-GAAP financial
measure presented in this press release provides investors with a
means of evaluating and understanding how the Company’s management
evaluates the Company’s operating performance. These non-GAAP
financial measures should not be considered in isolation from, as
substitutes for, nor superior to financial measures prepared in
accordance with GAAP.
Adjusted net loss
In thousands, except per share data
|
For the Three Months Ended March
31, |
|
2017 |
|
2016 |
|
Amount |
|
Per share |
|
Amount |
|
Per share |
Net loss |
$ |
(34,564 |
) |
|
$ |
(0.48 |
) |
|
$ |
(58,260 |
) |
|
$ |
(1.96 |
) |
Adjustments: |
|
|
|
|
|
|
|
Loss /
write down on assets held for sale |
17,702 |
|
|
0.25 |
|
|
12,433 |
|
|
0.42 |
|
Write
down of deferred financing cost |
470 |
|
|
0.01 |
|
|
2,456 |
|
|
0.08 |
|
Charterhire contract termination charge |
— |
|
|
— |
|
|
10,000 |
|
|
0.34 |
|
Total adjustments |
18,172 |
|
|
0.25 |
|
|
14,889 |
|
|
0.50 |
|
Adjusted net
loss |
$ |
(16,392 |
) |
|
$ |
(0.23 |
) |
|
$ |
(33,371 |
) |
|
$ |
(1.12 |
) |
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,” “intend,” “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, our 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 we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the failure of counterparties to fully perform
their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for dry bulk
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, 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.
Contact:
Scorpio Bulkers Inc.
+377-9798-5715 (Monaco)
+1-646-432-1675 (New York)
Scorpio Bulkers (NYSE:SALT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Scorpio Bulkers (NYSE:SALT)
Historical Stock Chart
From Apr 2023 to Apr 2024