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-month
period ended December 31, 2011. The Company's Board of Directors
also declared a quarterly dividend of $0.15 per share for the
fourth quarter of 2011.
Summary of Fourth Quarter 2011 Results
- Net revenue for the fourth quarter of 2011 increased by 4% to
$42.9 million from $41.3 million during the same period in
2010.
- Net income for the fourth quarter of 2011 decreased by 24% to
$23.6 million from $31.1 million during the same period in 2010.
Adjusted net income(1) for the fourth quarter of 2011 decreased by
8% to $24.0 million from $26.0 million during the same period in
2010.
- EBITDA(2) for the fourth quarter of 2011 decreased by 16% to
$31.7 million from $37.9 million during the same period in 2010.
Adjusted EBITDA(1) for the fourth quarter of 2011 decreased by 2%
to $32.1 million from $32.7 million during the same period in
2010.
- Earnings per share ("EPS") and Adjusted EPS(1) for the fourth
quarter of 2011 of $0.33 and $0.34, respectively, calculated on a
weighted average number of shares of 70,894,420, compared to $0.47
and $0.39, respectively, in the fourth quarter 2010, calculated on
a weighted average number of shares of 65,878,212.
- The Company's Board of Directors declared a dividend of $0.15
per share for the fourth quarter of 2011.
Summary of Twelve-Months Period Ended December
31, 2011 Results
- Net revenue for the twelve-month period ended December 31, 2011
increased by 8% to $168.9 million from $157.0 million during the
same period in 2010.
- Net income for the twelve-month period ended December 31, 2011
decreased by 18% to $89.7 million from $109.6 million during the
same period in 2010. Adjusted net income for the twelve-month
period ended December 31, 2011 increased by 1% to $102.8 million
from $102.2 million during the same period in 2010.
- EBITDA for the twelve-month period ended December 31, 2011
decreased by 11% to $118.2 million from $133.4 million during the
same period in 2010. Adjusted EBITDA for the twelve-month period
ended December 31, 2011 increased by 4% to $131.3 million from
$125.9 million during the same period in 2010.
- EPS and Adjusted EPS for the twelve-month period ended December
31, 2011 of $1.29 and $1.48, respectively, calculated on a weighted
average number of shares of 69,463,093, compared to $1.73 and $1.61
respectively, during the same period in 2010, calculated on a
weighted average number of shares of 63,300,466.
(1) Adjusted net income, Adjusted EPS and Adjusted EBITDA
represent net income, EPS and EBITDA before gain/(loss) on sale of
assets, early redelivery income/(cost) and gain/(loss) on
derivatives and foreign currency respectively. See Table 1. (2)
EBITDA represents net income plus interest expense, tax,
depreciation and amortization. See Table 1.
Fleet and Employment Profile
On September 9, 2011, the Company took delivery of the MV Venus
History, a Japanese-built, Post-Panamax class newbuild vessel.
On November 24, 2011, the Company took delivery of the MV
Pelopidas, a Chinese-built, Capesize class newbuild vessel. MV
Pelopidas initiated a 10 year period time charter at $38,000 per
day, in January 2012.
As of February 14, 2012, the Company's operational fleet was
comprised of 18 drybulk vessels with an average age of 4.4
years.
The Company has contracted to acquire 10 additional drybulk
newbuild vessels with deliveries scheduled at various times through
2014. The newbuild vessels consist of five Panamax vessels; three
Kamsarmax vessels; one Post-Panamax vessel; and one Capesize
vessel.
As of February 14, 2012, the contracted employment of fleet
ownership days for the remainder of 2012 was 69%. For the full
years 2012, 2013 and 2014 the contracted employment of fleet
ownership days was 72%, 59% and 32%, respectively. Contracted
employment includes vessels which are scheduled to be delivered to
us in the future.
Capital expenditure requirements and liquidity
as of December 31, 2011
The remaining capital expenditure requirements net of
commissions for the delivery of the 10 newbuilds amounted to $259.7
million, of which 150.9 million is scheduled to be paid in 2012,
$38.2 million in 2013, and $70.6 million in 2014. We anticipate
satisfying these capital expenditure requirements from existing
cash and time deposits, borrowings against our long-term floating
rate note investment, cash surplus from operations and existing
undrawn loan and revolving credit facilities and commitments.
As of December 31, 2011, the Company had $28.1 million in cash
and short-term time deposits, $5.4 million in long-term restricted
cash and $50.0 million in a long-term floating rate note
investment, from which it may borrow up to 80% under certain
conditions. Additionally, the Company had an aggregate of $135.2
million in undrawn loan and credit facilities and loan commitments,
for two existing and two newbuild vessels and $43.7 million
available from existing revolving reducing credit facilities.
In February 2012, the Company accepted an offer letter from a
bank for a new revolving credit facility of up to $18.0 million
which will be utilized to finance the acquisition of one of the
remaining newbuild vessels.
Apart from the above loan and credit facilities and commitments,
the Company has the ability to borrow against the remaining seven
debt-free newbuild vessels upon their delivery, on which additional
financing may be contracted as and if required.
Dividend Declaration
The Company's Board of Directors declared a cash dividend on the
Company's common stock of $0.15 per share payable on or about
February 29, 2012 to shareholders of record at the close of trading
of the Company's common stock on the New York Stock Exchange (the
"NYSE") on February 24, 2012.
The Company has 70,896,924 shares of common stock issued and
outstanding as of today's date.
The Board of Directors of the Company is continuing a policy of
paying out a portion of the Company's free cash flow at a level it
considers prudent in light of the current economic and financial
environment. 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) our earnings, financial
condition and cash requirements and available sources of liquidity,
(ii) decisions in relation to our growth strategies, (iii)
provisions of Marshall Islands and Liberian law governing the
payment of dividends, (iv) restrictive covenants in our existing
and future debt instruments and (v) global financial conditions. We
might not pay dividends in the future.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "Our Board
of Directors has declared our fifteenth consecutive dividend since
our IPO. Our financial position is supported by our strong charter
coverage and fleet expansion. Our capital expenditure requirements
are fully covered by our liquidity and our contracted revenue,
while upon delivery of all our newbuilds seven vessels are expected
to be debt-free. We continue our newbuilding program and we may
pursue further attractive vessel acquisition opportunities
expanding or renewing our current fleet, with new vessel designs
currently under development by leading shipyards, complying with
upcoming regulations and incorporating technology advancements
providing for energy efficiency and environmental protection."
Conference Call
On Wednesday, February 15, 2012 at 8:30 A.M. EST, the Company's
management team will host a conference call to discuss the
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 24, 2012 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
(www.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 2011
Results
Net income decreased by 24% to $23.6 million for the fourth
quarter of 2011 from $31.1 million for the same period in 2010,
mainly due to the following factors:
Net revenues: Net revenues increased by 4% to $42.9 million for
the fourth quarter of 2011, compared to $41.3 million for the same
period in 2010, mainly due to an increased number of operating
days. The Company operated 17.41 vessels on average during the
fourth quarter of 2011, earning a TCE rate of $26,330, compared to
15.32 vessels and a TCE rate of $29,395 during the same period in
2010.
Vessel operating expenses: Vessel operating expenses increased
by 14% to $7.2 million for the fourth quarter of 2011, compared to
$6.3 million for the same period in 2010. The increase in operating
expenses is mainly attributable to an increase in ownership days by
14% to 1,602 days for the fourth quarter of 2011 from 1,409 days
for the same period in 2010. Daily vessel operating expenses
increased by 1% to $4,487 for the fourth quarter of 2011 compared
to $4,463 for the same period in 2010.
Depreciation: Depreciation increased to $6.6 million for the
fourth quarter of 2011, compared to $5.4 million for the same
period in 2010, as a result of the increase in the average number
of vessels owned by the Company during the fourth quarter of
2011.
Loss on derivatives: Loss on derivatives increased to $0.2
million in the fourth quarter of 2011, compared to a gain of $4.9
million for the same period in 2010, as a result of the
mark-to-market valuation of the Company's interest rate swap
transactions that we employ to manage the risk and interest rate
exposure of our loan and credit facilities. These swaps
economically hedge the interest rate exposure of the Company's
aggregate loans outstanding. The average remaining period of our
swap contracts is 2.8 years as of December 31, 2011. The valuation
of these interest rate swap transactions at the end of each quarter
is affected by the prevailing interest rates at that time.
Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands of U.S. Dollars except for share and per share data)
Three-Months Period Twelve-Months Period
Ended December 31, Ended December 31,
------------------------ ------------------------
2010 2011 2010 2011
----------- ----------- ----------- -----------
REVENUES:
Revenues 41,908 43,715 159,698 172,036
Commissions (621) (798) (2,678) (3,128)
Net revenues 41,287 42,917 157,020 168,908
EXPENSES:
Voyage expenses (134) (947) (610) (1,987)
Vessel operating
expenses (6,289) (7,188) (23,128) (26,066)
Depreciation (5,421) (6,571) (19,673) (23,637)
General and
administrative
expenses (2,011) (2,471) (7,018) (8,489)
Early redelivery
income - 106 132 207
Gain on sale of asset - - 15,199 -
Operating income 27,432 25,846 121,922 108,936
OTHER (EXPENSE) /
INCOME:
Interest expense (1,652) (1,510) (6,423) (5,250)
Other finance costs (147) (187) (331) (1,055)
Interest income 380 259 2,627 1,046
Gain/(Loss) on
derivatives 4,882 (175) (8,163) (12,491)
Foreign currency
gain/(loss) 287 (390) 281 (799)
Amortization and
write-off of deferred
finance charges (50) (290) (266) (653)
Net income 31,132 23,553 109,647 89,734
Earnings per share 0.47 0.33 1.73 1.29
Weighted average number
of shares 65,878,212 70,894,420 63,300,466 69,463,093
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, December 31,
2010 2011
-------------- --------------
ASSETS
Cash, time deposits 100,415 28,121
Other current assets 3,861 9,838
Vessels, net 541,244 655,356
Advances for vessel acquisition and vessels
under construction 99,014 122,307
Restricted cash non-current 5,423 5,423
Long-term investment 50,000 50,000
Other non-current assets 5,415 6,226
Total assets 805,372 877,271
LIABILITIES AND EQUITY
Current portion of long-term debt 27,674 18,486
Other current liabilities 25,309 33,187
Long-term debt, net of current portion 467,070 465,805
Other non-current liabilities 41,186 27,951
Shareholders' equity 244,133 331,842
Total liabilities and equity 805,372 877,271
Fleet Data 2011
Three-Months Twelve-Months
Period Ended Period Ended
December 31, December 31,
------------------ ------------------
2010 2011 2010 2011
-------- -------- -------- --------
FLEET DATA
Number of vessels at period's end 16.00 18.00 16.00 18.00
Average age of fleet (in years) 3.80 4.29 3.80 4.29
Ownership days (1) 1,409 1,602 5,326 5,992
Available days (2) 1,400 1,594 5,296 5,976
Operating days (3) 1,398 1,588 5,269 5,962
Fleet utilization (4) 99.2% 99.1% 98.9% 99.5%
Average number of vessels in the
period (5) 15.32 17.41 14.59 16.42
AVERAGE DAILY RESULTS
Time charter equivalent rate (6) $ 29,395 $ 26,330 $ 29,534 $ 27,932
Daily vessel operating expenses (7) $ 4,463 $ 4,487 $ 4,342 $ 4,350
(1) Ownership days represent the aggregate number of days in a period during
which each vessel in our fleet has been owned by us.
(2) Available days represent 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 represent 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 rates, or TCE rates, represent our charter
revenues less commissions and voyage expenses during a period divided by
the number of our available days during the 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 by ownership days for the relevant period.
TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA
AND ADJUSTED EPS
Three-Months Twelve-Months
Period Ended December 31, Period Ended December 31,
------------------------- -------------------------
(In thousands of U.S.
Dollars except for
share and per share
data) 2010 2011 2010 2011
------------ ----------- ------------ -----------
Net Income - Adjusted
Net Income
Net Income 31,132 23,553 109,647 89,734
Less Gain on Sale of
Assets - - (15,199) -
Less Early Redelivery
(Income)/cost - (106) 132 (207)
Plus (gain)/Loss on
Derivatives (4,882) 175 8,163 12,491
Plus Foreign Currency
(gain)/Loss (287) 390 (281) 799
Adjusted Net Income 25,963 24,012 102,198 102,817
EBITDA - Adjusted
EBITDA
Net Income 31,132 23,553 109,647 89,734
Plus Net Interest
Expense 1,272 1,251 3,796 4,204
Plus Depreciation 5,421 6,571 19,673 23,637
Plus Amortization 50 290 266 653
EBITDA 37,875 31,665 133,382 118,228
Less Gain on Sale of
Assets - - (15,199) -
Less Early Redelivery
(Income)/cost - (106) (132) (207)
Plus (gain)/Loss on
Derivatives (4,882) 175 8,163 12,491
Plus Foreign Currency
(gain)/Loss (287) 390 (281) 799
ADJUSTED EBITDA 32,706 32,124 125,933 131,311
EPS - Adjusted EPS
Net Income 31,132 23,553 109,647 89,734
Adjusted Net Income 25,963 24,012 102,198 102,817
Weighted average
number of shares 65,878,212 70,894,420 63,300,466 69,463,093
EPS 0.47 0.33 1.73 1.29
Adjusted EPS 0.39 0.34 1.61 1.48
EBITDA represents net income before interest, income tax
expense, depreciation and amortization. Adjusted EBITDA represents
EBITDA before gain/(loss) on sale of assets, early redelivery
income/(cost) and gain/(loss) on derivatives and foreign currency.
EBITDA and adjusted EBITDA are not recognized measurements under US
GAAP. EBITDA and adjusted EBITDA assist the Company's management
and investors by increasing the comparability of the Company's
fundamental performance from period to period and against the
fundamental performance of other companies in the Company's
industry that provide EBITDA and adjusted EBITDA information. The
Company believes that EBITDA and adjusted EBITDA are useful in
evaluating the Company's operating performance compared to that of
other companies in the Company's industry because the calculation
of EBITDA generally eliminates the effects of financings, income
taxes and the accounting effects of capital expenditures and
acquisitions and the calculation of adjusted EBITDA generally
further eliminates the effects from gain/(loss) on sale of assets,
early redelivery income/(cost) and gain/(loss) on derivatives and
foreign currency, items which may vary for different companies for
reasons unrelated to overall operating performance.
EBITDA, adjusted EBITDA, Adjusted Net Income and Adjusted EPS
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 and adjusted EBITDA
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 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.
Existing Fleet Employment Profile as of
February 14, 2012
Set out below is a table showing our existing vessels and their
contracted employment.
---------------------------------------------------------------------------
Charter Rate (a)
Vessel Name DWT Year Built USD/day Charter Duration (b)
---------------------------------------------------------------------------
Maria 76,000 2003 20,250 Apr 2011 - Apr 2014
---------------------------------------------------------------------------
Vassos 76,000 2004 29,000 Nov 2008 - Oct 2013
---------------------------------------------------------------------------
Katerina 76,000 2004 20,000 Feb 2011 - Feb 2014
---------------------------------------------------------------------------
Maritsa 76,000 2005 26,727 Apr 2011 - Mar 2015
---------------------------------------------------------------------------
Pedhoulas Merchant 82,300 2006 18,350 Aug 2011 - Aug 2013
---------------------------------------------------------------------------
20,000 Aug 2011 - Jul 2013
Pedhoulas Trader 82,300 2006 BPI + 6.5% (c) Aug 2013 - Jul 2015
---------------------------------------------------------------------------
Pedhoulas Leader 82,300 2007 18,500 Dec 2011 - Feb 2012
---------------------------------------------------------------------------
Stalo 87,000 2006 34,160 Mar 2010 - Feb 2015
---------------------------------------------------------------------------
Marina 87,000 2006 19,500 Dec 2011 - Dec 2013
---------------------------------------------------------------------------
Sophia 87,000 2007 34,720 Oct 2008 - Sep 2013
---------------------------------------------------------------------------
Eleni 87,000 2008 34,160 Apr 2010 - Mar 2015
---------------------------------------------------------------------------
Martine 87,000 2009 40,500 Feb 2009 - Feb 2014
---------------------------------------------------------------------------
Andreas K 92,000 2009 15,250 Nov 2011 - Mar 2012
---------------------------------------------------------------------------
Panayiota K 92,000 2010 15,250 Nov 2011 - Apr 2012
---------------------------------------------------------------------------
Venus Heritage 95,800 2010 13,500 Jan 2012 - Feb 2012
---------------------------------------------------------------------------
Venus History 95,800 2011 5,900 Jan 2012 - Mar 2012
---------------------------------------------------------------------------
Kanaris 178,100 2010 25,928 Sep 2011 - Jun 2031
---------------------------------------------------------------------------
Pelopidas 176,000 2012 38,000 Jan 2012 - Dec 2021
---------------------------------------------------------------------------
(a) Gross charter rate.
(b) Delivery / redelivery dates reflect the Company's best estimates. Actual
delivery / redelivery dates can differ in accordance with the terms of
the relevant charter contract.
(c) A time charter with a forward delivery date in August of 2013 for a
duration of 23 to 25 months, at a gross daily charter rate linked to the
Baltic Panamax Index ("BPI") plus a premium of 6.5%.
The contracted charter coverage including newbuilds, based on
the Company's best estimates as of February 14, 2012 is:
2012 (remaining) 69%
2012 (full year) 72%
2013 59%
2014 32%
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 is listed on the NYSE, where
it trades under the symbol "SB". The Company's current fleet
consists of 18 drybulk vessels, all built post-2003, and the
Company has contracted to acquire 10 additional drybulk newbuild
vessels to be delivered at various times through 2014.
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 Barmparis President Safe Bulkers, Inc.
Athens, Greece Tel.: +30 (210) 899-4980 Fax: +30 (210) 895-4159
E-Mail: directors@safebulkers.com Investor Relations / Media
Contact: Matthew Abenante Investor Relations Advisor Capital
Link, Inc. 230 Park Avenue, Suite 1536 New York, N.Y. 10169 Tel.:
(212) 661-7566 Fax: (212) 661-7526 E-Mail:
safebulkers@capitallink.com
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