Safe Bulkers, Inc. (the “Company”) (NYSE:SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three and twelve months
period ended December 31, 2017.
Summary of Fourth Quarter 2017
Results
- Net revenues for the fourth quarter of 2017 increased by 34% to
$42.4 million from $31.7 million during the same period in
2016.
- Net loss for the fourth quarter of 2017 was $86.6 million as
compared to $4.6 million, during the same period in 2016. Adjusted
net income1 for the fourth quarter of 2017 was $5.5 million as
compared to Adjusted net loss of $4.1 million, during the same
period in 2016.
- EBITDA2 for the fourth quarter of 2017 amounted to loss of
$68.1 million as compared to earnings of $13.1 million during the
same period in 2016. Adjusted EBITDA3 for the fourth quarter of
2017 increased by 76% to $23.9 million from $13.6 million during
the same period in 2016.
- Loss per share4 and Adjusted earnings per share4 for the fourth
quarter of 2017 were $0.88 and $0.02 respectively, calculated on a
weighted average number of 101,531,352 shares, as compared to a
Loss per share of $0.09 and Adjusted loss per share of $0.09 during
the same period in 2016, calculated on a weighted average number of
87,364,672 shares.
Summary of Twelve Months Ended December
31, 2017 Results
- Net revenues for the twelve months of 2017 increased by 35% to
$148.0 million from $109.8 million during the same period in
2016.
- Net loss for the twelve months of 2017 was $84.7 million as
compared $56.0 million, during the same period in 2016. Adjusted
net loss for the twelve months of 2017 was $1.7 million as compared
to $36.2 million, during the same period in 2016.
- EBITDA for the twelve months of 2017 decreased to loss of $8.4
million as compared to earnings of $15.6 million during the same
period in 2016. Adjusted EBITDA for the twelve months of 2017
increased by 110% to $74.7 million as compared to $35.5 million
during the same period in 2016.
- Loss per share and Adjusted loss per share for the twelve
months of 2017 were $0.98 and $0.16, respectively, calculated on a
weighted average number of shares of 100,932,876, as compared to
loss per share of $0.83 and Adjusted loss per share of $0.59 during
the same period in 2016, calculated on a weighted average number of
shares of 84,526,411.
___________________________________1 Adjusted Net income/(loss)
is a non-GAAP measure. Adjusted Net income/(loss) represents Net
income/(loss) before loss on sale of assets, gain/(loss) on
derivatives, gain on debt extinguishment, early redelivery cost,
other operating income/(expense), impairment loss and gain/(loss)
on foreign currency. See Table 1.2 EBITDA is a non-GAAP measure and
represents Net income/(loss) plus net interest expense, tax,
depreciation and amortization. See Table 1.3 Adjusted EBITDA is a
non-GAAP measure and represents EBITDA before loss on sale of
assets, gain/(loss) on derivatives, gain on debt
extinguishment, other operating income/(expense), early
redelivery cost, impairment loss and gain/(loss) on foreign
currency. See Table 1.4 Earnings/(loss) per share and Adjusted
Earnings/(loss) per share represent Net income/(loss) and Adjusted
Net income/(loss) less preferred dividend and deemed dividend
divided by the weighted average number of shares respectively. See
Table 1.
Redemption of Series B Preferred
Shares
In January 2018, the Company announced the
redemption, on February 20, 2018, of all outstanding 8.00% Series B
Cumulative Redeemable Perpetual Preferred Shares (the “Series B
Preferred Shares“) at redemption price of $25.00 per Series B
Preferred Share plus all accumulated and unpaid dividends until the
redemption date, (redemption date excluded). There are currently
379,514 issued and outstanding Series B Preferred Shares.
Fleet and Employment
Profile
In December 2017, the Company took delivery of
Agios Spyridonas, a second-hand, 92,000 dwt, South Korean 2010
built, dry-bulk, Post-Panamax class vessel, sistership of our two
existing Post-Panamax class vessels, at an attractive price. The
acquisition was financed from cash on hand.
As of February 9, 2018, our operational fleet
comprised of 39 drybulk vessels with an average age of 7.6 years
and an aggregate carrying capacity of 3.5 million dwt. Our fleet
consists of 14 Panamax class vessels, 9 Kamsarmax class vessels, 13
post- Panamax class vessels and 3 Capesize class vessels, all built
2003 onwards. Upon delivery of our last contracted drybulk newbuild
Kamsarmax class vessel, scheduled for 2018, and assuming no
additional vessel acquisitions or disposals, our fleet will
comprise of 40 vessels, 11 of which will be eco-design vessels,
with an aggregate carrying capacity of 3.6 million dwt.
Set out below is a table showing the Company’s
existing and newbuild vessels and their contracted employment as of
February 9, 2018:
|
|
|
|
|
|
Vessel Name |
DWT |
Year Built |
Country of construction |
Gross Charter Rate
[USD/day]1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
11,900 |
Feb 2018- Mar 2018 |
Koulitsa |
76,900 |
2003 |
Japan |
9,000 |
Jan 2018 – Apr 2019 |
Paraskevi |
74,300 |
2003 |
Japan |
7,400 |
Apr 2017 – Jun 2018 |
Vassos |
76,000 |
2004 |
Japan |
13,350 |
Jan 2018 – May 2018 |
Katerina |
76,000 |
2004 |
Japan |
7,500 |
Apr 2017 – Jun 2018 |
Maritsa |
76,000 |
2005 |
Japan |
10,100 |
Sep 2017 – Dec 2018 |
Efrossini |
75,000 |
2012 |
Japan |
12,940 |
Jan 2018 – April 2018 |
Zoe |
75,000 |
2013 |
Japan |
8,200 |
Nov 2017 – Mar 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
14,000 |
Jan 2018 – Mar 2018 |
Kypros Sea |
77,100 |
2014 |
Japan |
11,250 |
Jul 2017 – May 2018 |
Kypros Bravery |
78,000 |
2015 |
Japan |
7,500 |
Sep 2016 – May 2018 |
Kypros Sky |
77,100 |
2015 |
Japan |
|
|
Kypros Loyalty |
78,000 |
2015 |
Japan |
12,850 |
Jan 2018 – Dec 2018 |
Kypros Spirit |
78,000 |
2016 |
Japan |
11,800 |
Dec 2017 – Feb 2018 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
13,850 |
Sep 2017 – Feb 2018 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
11,600 |
Sep 2017 – Jul 2018 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
13,250 |
Jan 2018 – Sep 2018 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
10,150 |
Jun 2017 – May 2018 |
Pedhoulas Builder |
81,600 |
2012 |
China |
8,4009,900 |
Apr 2017 – Jun 2018Jun 2018 – Aug 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
12,650 |
Dec 2017 – Mar 2018 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
12,600 |
Jan 2018 – Aug 2018 |
Pedhoulas Cherry 3 |
82,000 |
2015 |
China |
6,600 |
Apr 2017 – Oct 2018 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
8,50010,000 |
Jan 2017 – Mar 2018Mar 2018 – May 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
10,600 |
Jul 2017 – May 2018 |
Xenia |
87,000 |
2006 |
Japan |
10,00012,500 |
Feb 2017 – Jun 2018Jun 2018 – Nov 2019 |
Sophia |
87,000 |
2007 |
Japan |
7,250 |
Apr 2016 – Nov 2018 |
Eleni |
87,000 |
2008 |
Japan |
14,250 |
Jan 2018 – Feb 2018 |
Martine |
87,000 |
2009 |
Japan |
11,500 |
Aug 2017 – May 2018 |
Andreas K |
92,000 |
2009 |
South Korea |
13,000 |
Nov 2017 – Feb 2018 |
Panayiota K |
92,000 |
2010 |
South Korea |
11,250 |
Feb 2018 – Mar 2018 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
11,500 |
Jan 2018 – Mar 2018 |
Venus Heritage |
95,800 |
2010 |
Japan |
13,200 |
Nov 2017 – Mar 2019 |
Venus History |
95,800 |
2011 |
Japan |
14,750 |
Jan 2018 – Jan 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
13,950 |
Jan 2018 – Dec 2018 |
Troodos Sun |
85,000 |
2016 |
Japan |
15,950 |
Dec 2017 – Feb 2018 |
Troodos Air |
85,000 |
2016 |
Japan |
11,35012,500 |
Mar 2017 – May 2018May 2018 – Sep 2019 |
Capesize |
Kanaris |
178,100 |
2010 |
China |
25,928 |
Sep 2011 – Jun 2031 |
Pelopidas |
176,000 |
2011 |
China |
38,000 |
Feb 2012 – Dec 2021 |
Lake Despina |
181,400 |
2014 |
Japan |
24,376 4 |
Jan 2014 – Jan 2024 |
Total dwt of existing fleet |
3,513,800 |
|
|
|
|
|
|
|
|
|
|
Hull Number |
DWT |
Expected delivery |
Country of construction |
Gross Charter Rate [USD/day] |
Charter Duration1 |
Kamsarmax |
Hull 1552 |
81,600 |
H1 2018 |
Japan |
|
|
Total dwt of orderbook |
81,600 |
|
|
|
|
|
|
|
|
|
|
- Charter rate is the recognized gross daily charter rate. For
charter parties with variable rates among periods or consecutive
charter parties with the same charterer, the recognized gross daily
charter rate represents the weighted average gross daily charter
rate over the duration of the applicable charter period or series
of charter periods, as applicable. In case a charter agreement
provides for additional payments, namely ballast bonus to
compensate for vessel repositioning, the gross daily charter rate
presented has been adjusted to reflect estimated vessel
repositioning expenses. In case of voyage charters the charter
rate represents revenue recognized on a pro-rata basis over
the duration of the voyage from load to discharge port less related
voyage expenses.
- The start date represents either the actual start date or, in
the case of a contracted charter that had not commenced as of
February 9, 2018, the scheduled start date. The actual start
date and redelivery date may differ from the referenced scheduled
start and redelivery dates depending on the terms of the charter
and market conditions and does not reflect the options to extend
the period time charter.
- Vessel sold and leased back on a net daily bareboat charter
rate of $6,500 for a period of 10 years, with a purchase obligation
at the end of the 10th year and purchase options in favor of the
Company after the second year of the bareboat charter, at annual
intervals and predetermined purchase prices.
- A period time charter of ten years at a gross daily charter
rate of $23,100 for the first two and a half years and of $24,810
for the remaining period. In January 2017, the period time charter
was amended to reflect substitution of the initial charterer with
its subsidiary guaranteed by the initial charterer and changes in
payment terms; all other charter terms remained unchanged.
The charter agreement grants the charterer an option to purchase
the vessel at any time beginning at the end of the seventh year of
the charter, at a price of $39 million less a 1.00% commission,
decreasing thereafter on a pro-rated basis by $1.5 million per
year. The Company holds a right of first refusal to buy back
the vessel in the event that the charterer exercises its option to
purchase the vessel and subsequently offers to sell such vessel to
a third party. The charter agreement also grants the charterer the
option to extend the period time charter for an additional twelve
months at a time at a gross daily charter rate of $26,330, less
1.25% total commissions, which option may be exercised by the
charterer a maximum of two times.
The contracted employment of fleet ownership
days as of February 9, 2018, was:
2018 (remaining) |
53 |
% |
2018 (full year) |
58 |
% |
2019 |
16 |
% |
2020 |
8 |
% |
|
|
|
Order book, newbuilds capital expenditure requirements
and liquidity
As of December 31, 2017, the remaining order
book of the Company consisted of one newbuild vessel; our
wholly-owned subsidiary Pinewood Shipping Corporation has
contracted to acquire Hull No. 1552, with scheduled delivery date
in June 2018.
As of December 31, 2017, the aggregate remaining
capital expenditure, relating to the purchase consideration of
newbuilds, amounted to $27.6 million payable within 2018.
As of December 31, 2017, we had secured $16.9
million of preferred equity financing for Hull 1552 and had the
capacity to borrow against two unencumbered vessels.
As of December 31, 2017, we had liquidity of
$68.7 million consisting of $58.4 million in cash and bank time
deposits and $10.3 million in restricted cash.
As of February 9, 2018, the aggregate remaining
capital expenditure, relating to the purchase consideration of
newbuilds, amounted to $27.1 million payable within 2018.
As of February 9, 2018, we had liquidity of
$79.5 million consisting of $70.9 million in cash and bank time
deposits and $8.6 million in restricted cash, in addition to $16.9
million of financing arrangements, and the capacity to borrow
against two unencumbered vessels.
Dividend Policy
The Board of Directors of the Company has not
declared a dividend to its common stock holders for the fourth
quarter of 2017. The Company had 101,535,996 shares of common stock
issued and outstanding as of February 9, 2018.
The Company declared in January a cash dividend
of $0.50 per share on its 8.00% Series B Cumulative Redeemable
Perpetual Preferred Shares (NYSE:SB.PR.B), on its 8.00% Series C
Cumulative Redeemable Perpetual Preferred Shares (NYSE:SB.PR.C) and
on its 8.00% Series D Cumulative Redeemable Perpetual Preferred
Shares (NYSE:SB.PR.D) for the period from October 30, 2017 to
January 29, 2018 payable on January 30, 2018 to the respective
shareholders of record as of January 23, 2018.
The declaration and payment of dividends, if
any, will always be subject to the discretion of the Board of
Directors of the Company. The timing and amount of any dividends
declared will depend on, among other things: (i) the Company’s
earnings, financial condition and cash requirements and available
sources of liquidity; (ii) decisions in relation to the Company’s
growth and leverage strategies; (iii) provisions of Marshall
Islands and Liberian law governing the payment of dividends; (iv)
restrictive covenants in the Company’s existing and future debt
instruments; and (v) global economic and financial conditions.
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: "Safe Bulkers Inc., has become profitable on adjusted basis
for the first time after several quarters, and we believe has one
of the most competitive break-even points in the industry. We
continue to use our cash from operations to further improve our
capital structure, while in parallel we have invested in one second
hand vessel creating intrinsic value for our common
shareholders."
Conference Call
On Thursday, February 15, 2018 at 8:30 A.M.
Eastern Time, the Company’s management team will host a conference
call to discuss the Company’s financial results.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 1
(866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll
Free Dial In) or +44 (0)1452-542-301 (Standard International Dial
In). Please quote “Safe Bulkers” to the
operator.
A telephonic replay of the conference call will
be available until February 22, 2018 by dialing 1 (866) 247-4222
(US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or
+44 (0)1452 550-000 (Standard International Dial In). Access Code:
1859591#
Slides and Audio Webcast
There will also be a live, and then archived,
webcast of the conference call, available through the Company’s
website (safebulkers.com). Participants in the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Management Discussion of Fourth Quarter
2017 Results
Net loss for the fourth quarter of 2017 was
$86.6 million compared to net loss of $4.6 million during the same
period in 2016, mainly due to the following factors:
Net revenues: Net revenues increased by 34% to
$42.4 million for the fourth quarter of 2017, compared to $31.7
million for the same period in 2016, mainly due to an increase in
charter rates and to a lesser extent an increase in the average
number of vessels. The Company operated 38.04 vessels on average
during the fourth quarter of 2017, earning a TCE6 rate of $11,944,
compared to 37.00 vessels and a TCE rate of $8,936 during the same
period in 2016.
Vessel operating expenses: Vessel operating
expenses, which include dry-docking cost and initial supplies
expenses, increased by 9% to $13.7 million for the fourth quarter
of 2017, compared to $12.6 million for the same period in 2016, as
a result of: i) increased average number of vessels by 3% to 38.04
vessels for the fourth quarter of 2017, from 37.00 vessels
for the same period in 2016, ii) increased maintenance and
spare parts costs to $2.4 million for the fourth quarter of
2017, compared to $1.5 million for the same period in
2016.
Impairment loss: Consistent with prior
practices, we have reviewed all our vessels for impairment and four
of our vessels were found to be impaired. We have recorded
impairment charge of $91.3 million for the fourth quarter of 2017,
as a result of writing down these vessels to their estimated fair
market value. Impairment charge is a non-cash item.
Interest expenses: Interest expense increased to
$5.6 million in the fourth quarter of 2017, compared to $5.1
million for the same period in 2016, as a result of the increased
USD LIBOR8 affecting the weighted average interest rate of our
loans and credit facilities.
Voyage expenses: Voyage expenses decreased by
60% to $0.6 million for the fourth quarter of 2017 compared to $1.5
million for the same period in 2016, mainly due to decreased vessel
repositioning expenses as a result of improved market
conditions.
Daily vessel operating expenses5: Daily vessel
operating expenses, which are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period, increased by 5% to $3,914 for the fourth quarter of
2017 compared to $3,711 for the same period in 2016.
Daily general and administrative expenses5:
Daily general and administrative expenses, which include management
fees payable to our Managers7 increased by 8% to $1,175 for the
fourth quarter of 2017, compared to $1,083 for the same period in
2016.
___________________________________5 See Table 2.6 Time charter
equivalent rates, or TCE rate, represents the Company’s charter
revenues less commissions and voyage expenses during a period
divided by the number of our available days during such period.7
Safety Management Overseas S.A. and Safe Bulkers Management
Limited, each a related party referred in this press release as
“our Manager” and collectively “our Managers’’.8 London interbank
offered rate.
|
Unaudited Interim Financial Information and
Other Data |
|
SAFE BULKERS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) |
(In thousands of U.S. Dollars except for share
and per share data) |
|
|
|
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period Ended December
31, |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
32,944 |
|
|
44,101 |
|
|
113,959 |
|
|
154,040 |
|
Commissions |
(1,234 |
) |
|
(1,723 |
) |
|
(4,187 |
) |
|
(6,008 |
) |
Net revenues |
31,710 |
|
|
42,378 |
|
|
109,772 |
|
|
148,032 |
|
EXPENSES: |
|
|
|
|
Voyage
expenses |
(1,490 |
) |
|
(573 |
) |
|
(7,679 |
) |
|
(3,932 |
) |
Vessel
operating expenses |
(12,633 |
) |
|
(13,699 |
) |
|
(49,519 |
) |
|
(52,794 |
) |
Depreciation |
(12,686 |
) |
|
(12,981 |
) |
|
(49,485 |
) |
|
(51,424 |
) |
General
and administrative expenses |
(3,687 |
) |
|
(4,114 |
) |
|
(15,381 |
) |
|
(16,118 |
) |
Early
redelivery cost |
- |
|
|
(996 |
) |
|
- |
|
|
(1,263 |
) |
Other
operating (expense)/income |
(364 |
) |
|
- |
|
|
794 |
|
|
(390 |
) |
Loss on
sale of assets |
- |
|
|
- |
|
|
(2,750 |
) |
|
(120 |
) |
Impairment loss |
- |
|
|
(91,293 |
) |
|
(17,163 |
) |
|
(91,293 |
) |
Operating income/(loss) |
850 |
|
|
(81,278 |
) |
|
(31,411 |
) |
|
(69,302 |
) |
|
|
|
|
|
OTHER (EXPENSE)
/ INCOME: |
|
|
|
|
Interest
expense |
(5,111 |
) |
|
(5,558 |
) |
|
(19,576 |
) |
|
(23,224 |
) |
Other
finance costs |
(266 |
) |
|
(103 |
) |
|
(1,735 |
) |
|
(538 |
) |
Gain on
debt extinguishment |
- |
|
|
- |
|
|
- |
|
|
8,189 |
|
Interest
income |
130 |
|
|
193 |
|
|
515 |
|
|
799 |
|
Gain/(loss) on derivatives |
251 |
|
|
21 |
|
|
(620 |
) |
|
72 |
|
Foreign
currency (loss)/gain |
(376 |
) |
|
237 |
|
|
(76 |
) |
|
1,782 |
|
Amortization and write-off of deferred finance charges |
(115 |
) |
|
(72 |
) |
|
(3,063 |
) |
|
(2,457 |
) |
Net loss |
(4,637 |
) |
|
(86,560 |
) |
|
(55,966 |
) |
|
(84,679 |
) |
Less
Preferred dividend |
3,495 |
|
|
2,940 |
|
|
14,025 |
|
|
12,316 |
|
Less
Preferred deemed dividend |
- |
|
|
- |
|
|
- |
|
|
2,146 |
|
Net loss available to
common shareholders |
(8,132 |
) |
|
(89,500 |
) |
|
(69,991 |
) |
|
(99,141 |
) |
Loss per share basic and diluted |
(0.09 |
) |
|
(0.88 |
) |
|
(0.83 |
) |
|
(0.98 |
) |
Weighted
average number of shares |
87,364,672 |
|
|
101,531,352 |
|
|
84,526,411 |
|
|
100,932,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve-Months Period Ended
December 31, |
|
|
|
|
|
|
|
2016 |
|
2017 |
|
|
|
(In
million of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
|
|
$ |
13.5 |
|
|
$ |
49.2 |
|
|
|
|
Net cash provided by
/(used in) investing activities |
|
|
|
|
21.3 |
|
|
|
(38.2 |
) |
|
|
|
Net cash used in
financing activities |
|
|
|
|
(83.9 |
) |
|
|
(46.7 |
) |
|
|
|
Net decrease in cash
and cash equivalents |
|
|
|
|
(49.1 |
) |
|
|
(35.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAFE BULKERS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
(In thousands of U.S. Dollars) |
|
|
|
|
|
December 31, 2016 |
|
December 31, 2017 |
ASSETS |
|
|
|
Cash,
restricted cash and time deposits |
94,813 |
|
60,016 |
Other
current assets |
16,195 |
|
19,070 |
Vessels,
net |
1,038,719 |
|
942,876 |
Advances
for vessel acquisition, vessels under construction and major
improvements |
13,007 |
|
3,653 |
Restricted cash non-current |
10,002 |
|
8,651 |
Other
non-current assets |
1,017 |
|
831 |
Total assets |
1,173,753 |
|
1,035,097 |
LIABILITIES AND
EQUITY |
|
|
|
Other
current liabilities |
11,603 |
|
11,345 |
Current
portion of long-term debt, net |
12,177 |
|
25,588 |
Long-term
debt, net |
569,781 |
|
541,816 |
Other
non-current liabilities |
1,656 |
|
- |
Shareholders’ equity |
578,536 |
|
456,348 |
Total liabilities and equity |
1,173,753 |
|
1,035,097 |
|
|
|
|
|
TABLE 1 |
RECONCILIATION OF ADJUSTED NET INCOME/(LOSS),
EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER
SHARE |
|
|
|
|
Three-Months Period Ended
December 31, |
Twelve-Months Period Ended
December 31, |
(In thousands of U.S.
Dollars except for share and per share data) |
2016 |
2017 |
2016 |
2017 |
Net Loss –
Adjusted Net (Loss)/Income |
|
|
|
|
Net
loss |
(4,637 |
) |
(86,560 |
) |
(55,966 |
) |
(84,679 |
) |
Plus Loss on sale of
assets |
- |
|
- |
|
2,750 |
|
120 |
|
Plus (Gain)/loss on
derivatives |
(251 |
) |
(21 |
) |
620 |
|
(72 |
) |
Plus Early redelivery
cost |
- |
|
996 |
|
- |
|
1,263 |
|
Less Other operating
expense/(income) |
364 |
|
- |
|
(794 |
) |
390 |
|
Plus Impairment
loss |
- |
|
91,293 |
|
17,163 |
|
91,293 |
|
Less Gain on debt
extinguishment |
- |
|
- |
|
- |
|
(8,189 |
) |
Less Foreign currency
loss/(gain) |
376 |
|
(237 |
) |
76 |
|
(1,782 |
) |
Adjusted (Net
loss)/income |
(4,148 |
) |
5,471 |
|
(36,151 |
) |
(1,656 |
) |
|
|
|
|
|
EBITDA -
Adjusted EBITDA |
|
|
|
|
Net
loss |
(4,637 |
) |
(86,560 |
) |
(55,966 |
) |
(84,679 |
) |
Plus Net Interest
expense |
4,981 |
|
5,365 |
|
19,061 |
|
22,425 |
|
Plus Depreciation |
12,686 |
|
12,981 |
|
49,485 |
|
51,424 |
|
Plus Amortization |
115 |
|
72 |
|
3,063 |
|
2,457 |
|
EBITDA |
13,145 |
|
(68,142 |
) |
15,643 |
|
(8,373 |
) |
Plus Loss on sale of
assets |
- |
|
- |
|
2,750 |
|
120 |
|
Plus (Gain)/loss on
derivatives |
(251 |
) |
(21 |
) |
620 |
|
(72 |
) |
Plus Early redelivery
cost |
- |
|
996 |
|
- |
|
1,263 |
|
Less Other operating
expense/(income) |
364 |
|
- |
|
(794 |
) |
390 |
|
Plus Impairment
loss |
- |
|
91,293 |
|
17,163 |
|
91,293 |
|
Less Gain on debt
extinguishment |
- |
|
- |
|
- |
|
(8,189 |
) |
Less Foreign currency
loss/(gain) |
376 |
|
(237 |
) |
76 |
|
(1,782 |
) |
ADJUSTED
EBITDA |
13,634 |
|
23,889 |
|
35,458 |
|
74,650 |
|
|
|
|
|
|
Loss per
share |
|
|
|
|
Net
loss |
(4,637 |
) |
(86,560 |
) |
(55,966 |
) |
(84,679 |
) |
Less Preferred
dividend |
3,495 |
|
2,940 |
|
14,025 |
|
12,316 |
|
Less Preferred deemed
dividend |
- |
|
- |
|
- |
|
2,146 |
|
Net loss available to
common shareholders |
(8,132 |
) |
(89,500 |
) |
(69,991 |
) |
(99,141 |
) |
Weighted average number
of shares |
87,364,672 |
|
101,531,352 |
|
84,526,411 |
|
100,932,876 |
|
Loss per
share |
(0.09 |
) |
(0.88 |
) |
(0.83 |
) |
(0.98 |
) |
|
|
|
|
|
Adjusted
(Loss)/Earnings per share |
|
|
|
|
Adjusted Net
(Loss)/Income |
(4,148 |
) |
5,471 |
|
(36,151 |
) |
(1,656 |
) |
Less Preferred
dividend |
3,495 |
|
2,940 |
|
14,025 |
|
12,316 |
|
Less Deemed
dividend |
- |
|
- |
|
- |
|
2,146 |
|
Adjusted Net
(loss)/income available to common shareholders |
(7,643 |
) |
2,531 |
|
(50,176 |
) |
(16,118 |
) |
Weighted average number
of shares |
87,364,672 |
|
101,531,352 |
|
84,526,411 |
|
100,932,876 |
|
Adjusted
(Loss)/Earnings per share |
(0.09 |
) |
0.02 |
|
(0.59 |
) |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP. - EBITDA represents Net
income/(loss) before interest, income tax expense, depreciation and
amortization. - Adjusted EBITDA represents EBITDA before loss on
sale of assets, gain/(loss) on derivatives, gain on debt
extinguishment, other operating income/(expense), early redelivery
cost, impairment loss and gain/(loss) on foreign currency. -
Adjusted Net income/(loss) represents Net income/(loss) before loss
on sale of assets, gain/(loss) on derivatives, gain on debt
extinguishment, other operating income/(expense), early
redelivery cost, impairment loss and gain/(loss) on foreign
currency. - Adjusted earnings/(loss) per share represents Adjusted
Net income/(loss) less preferred dividend and preferred deemed
dividend divided by the weighted average number of shares.EBITDA,
Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share are used as supplemental financial
measures by management and external users of financial statements,
such as investors, to assess our financial and operating
performance. The Company believes that these non-GAAP financial
measures assist our management and investors by increasing the
comparability of our performance from period to period. The Company
believes that including these supplemental financial measures
assists our management and investors in (i) understanding and
analyzing the results of our operating and business performance,
(ii) selecting between investing in us and other investment
alternatives and (iii) monitoring our financial and operational
performance in assessing whether to continue investing in us. The
Company believes that EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are useful in
evaluating the Company’s operating performance from period to
period because the calculation of EBITDA generally eliminates the
effects of financings, income taxes and the accounting effects of
capital expenditures and acquisitions, the calculation of Adjusted
EBITDA generally further eliminates the effects from loss on sale
of assets, gain/(loss) on derivatives, gain on debt extinguishment,
other operating income/(expense), early redelivery cost, impairment
loss and gain/(loss) on foreign currency, items which may vary from
year to year and for different companies for reasons
unrelated to overall operating performance. Furthermore, the
calculation of Adjusted Net income/(loss) generally eliminates the
effects of loss on sale of assets, gain/(loss) on derivatives, gain
on debt extinguishment, other operating income/(expense), early
redelivery cost, impairment loss and gain/(loss) on foreign
currency, items which may vary from year to year and for different
companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share have limitations as analytical tools, and
should not be considered in isolation, or as a substitute for
analysis of the Company’s results as reported under US GAAP.
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) should
not be considered as substitutes for net income and other
operations data prepared in accordance with US GAAP or as a measure
of profitability. While EBITDA and Adjusted EBITDA Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, are
frequently used as measures of operating results and performance,
they are not necessarily comparable to other similarly titled
captions of other companies due to differences in methods of
calculation. In evaluating Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted EBITDA, Adjusted Net income/(loss)
and Adjusted earnings/(loss) per share should not be
construed as an inference that our future results will be
unaffected by the excluded items.
|
TABLE 2: FLEET DATA AND AVERAGE DAILY
INDICATORS |
|
|
|
|
|
|
|
Three-Month Period Ended December 31, |
|
Twelve-Month Period Ended December 31, |
|
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
Number of vessels at
period end |
|
37 |
|
|
39 |
|
|
37 |
|
|
39 |
|
Average age of fleet
(in years) |
|
6.68 |
|
|
7.51 |
|
|
6.68 |
|
|
7.51 |
|
Ownership days (1) |
|
3,404 |
|
|
3,500 |
|
|
13,390 |
|
|
13,858 |
|
Available days (2) |
|
3,382 |
|
|
3,500 |
|
|
13,329 |
|
|
13,788 |
|
Operating days (3) |
|
3,321 |
|
|
3,492 |
|
|
13,024 |
|
|
13,673 |
|
Fleet utilization
(4) |
|
97.6 |
% |
|
99.8 |
% |
|
97.3 |
% |
|
98.7 |
% |
Average number of
vessels in the period (5) |
|
37.00 |
|
|
38.04 |
|
|
36.58 |
|
|
37.97 |
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
|
Time charter equivalent
rate (6) |
|
$8,936 |
|
|
$11,944 |
|
|
$7,659 |
|
|
$10,451 |
|
Daily vessel operating
expenses (7) |
|
$3,711 |
|
|
$3,914 |
|
|
$3,698 |
|
|
$3,810 |
|
Daily general and
administrative expenses (8) |
|
$1,083 |
|
|
$1,175 |
|
|
$1,149 |
|
|
$1,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________(1) Ownership days represents the
aggregate number of days in a period during which each vessel in
our fleet has been owned by us.(2) Available days represents the
total number of days in a period during which each vessel in our
fleet was in our possession, net of off-hire days associated with
scheduled maintenance, which includes major repairs, drydockings,
vessel upgrades or special or intermediate surveys.(3) Operating
days represents the number of our available days in a period less
the aggregate number of days that our vessels are off-hire due to
any reason, excluding scheduled maintenance.(4) Fleet utilization
is calculated by dividing the number of our operating days during a
period by the number of our ownership days during that period.(5)
Average number of vessels in the period is calculated by dividing
ownership days in the period by the number of days in that
period.(6) Time charter equivalent rate, or TCE rate, represents
our charter revenues less commissions and voyage expenses during a
period divided by the number of available days during such
period.(7) Daily vessel operating expenses include the costs for
crewing, insurance, lubricants, spare parts, provisions, stores,
repairs, maintenance, statutory and classification expense,
drydocking, intermediate and special surveys and other
miscellaneous items. Daily vessel operating expenses are calculated
by dividing vessel operating expenses for the relevant period by
ownership days for such period.(8) Daily general and administrative
expenses include daily fixed management fees payable to our Manager
and daily costs in relation to our operation as a public company.
Daily general and administrative expenses are calculated by
dividing general and administrative expenses for the relevant
period by ownership days for such period.
About Safe Bulkers, Inc.
The Company is an international provider of
marine drybulk transportation services, transporting bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes for some of the world’s largest users of marine drybulk
transportation services. The Company’s common stock, series B
preferred stock, series C preferred stock and series D preferred
stock are listed on the NYSE, and trade under the symbols “SB”,
“SB.PR.B”, “SB.PR.C”, and “SB.PR.D”, respectively.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Exchange
Act of 1933, as amended, and in Section 21E of the Securities Act
of 1934, as amended) concerning future events, the Company’s growth
strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters. Words such as “expects,” “intends,” “plans,” “believes,”
“anticipates,” “hopes,” “estimates” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of the Company. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, changes in
the demand for drybulk vessels, competitive factors in the market
in which the Company operates, risks associated with operations
outside the United States and other factors listed from time to
time in the Company’s filings with the Securities and Exchange
Commission. The Company expressly disclaims any obligations or
undertaking to release any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
For further information please
contact:
Company Contact:Dr. Loukas
BarmparisPresident Safe Bulkers, Inc.Tel.: +30 211
1888400 +357 25 887
200E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail: safebulkers@capitallink.com
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