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, 2018.
Summary of Fourth Quarter 2018
Results
- Net revenues for the fourth quarter of 2018 increased by 24% to
$52.6 million from $42.4 million during the same period in
2017.
- Net income for the fourth quarter of 2018 was $9.5 million as
compared to a net loss of $86.6 million, during the same period in
2017. Adjusted net income1 for the fourth quarter of 2018 was $9.8
million as compared to $5.5 million, during the same period in
2017.
- EBITDA2 for the fourth quarter of 2018 was $28.9 million as
compared to a loss of $68.1 million during the same period in 2017.
Adjusted EBITDA3 for the fourth quarter of 2018 increased by 22% to
$29.1 million from $23.9 million during the same period in
2017.
- Earnings per share4 and Adjusted earnings per share4 for the
fourth quarter of 2018 were $0.07 and $0.07 respectively,
calculated on a weighted average number of 102,100,829 shares,
compared to a Loss per share4 of $0.88 and Adjusted earnings per
share of $0.02 during the same period in 2017, calculated on a
weighted average number of 101,531,352 shares.
Summary of Twelve-Months Ended December
31, 2018 Results
- Net revenues for the twelve months of 2018 increased by 31% to
$193.2 million from $148.0 million during the same period in
2017.
- Net income for the twelve months of 2018 was $27.7 million as
compared to a net loss of $84.7 million, during the same period in
2017. Adjusted net income for the twelve months of 2018 was $28.4
million as compared to Adjusted net loss of $1.7 million, during
the same period in 2017.
- EBITDA for the twelve months of 2018 amounted to $102.3 million
as compared to loss of $8.4 million during the same period in 2017.
Adjusted EBITDA for the twelve months of 2018 increased by 38% to
$103.1 million as compared to $74.7 million during the same period
in 2017.
- Earnings per share and Adjusted earnings per share for the
twelve months of 2018 were $0.16 and $0.17, respectively,
calculated on a weighted average number of 101,604,339 shares, as
compared to Loss per share and Adjusted loss per share of $0.98 and
$0.16 respectively, during the same period in 2017, calculated on a
weighted average number of 100,932,876 shares.
Common Stock Repurchase
Program
As of February 14, 2019, the Company had
purchased and cancelled 1,677,194 shares of the Company’s common
stock pursuant to previously announced repurchase program, which
has been terminated.
Fleet and Employment
Profile
In November 2018, the Company entered into a
Memorandum of Agreement with an unaffiliated seller to acquire a
Japanese built, dry-bulk, Post-Panamax class, resale, newbuild
vessel, expected to be delivered within the first half of 2020. The
Company has the option to finance up to 50% of the purchase price
of the vessel through the periodic issuance of the Company’s common
stock to the seller. In November 2018, the Company exercised its
option and issued 1,441,048 shares of common stock of the Company
to the seller, to finance the first instalment of the purchase
price of the vessel. Any such common stock issued by the Company is
subject to a restriction on transfer for a period of six months
from the date of such issuance.
As of February 14, 2019, our operational
fleet comprised of 41 drybulk vessels, 11 of which are eco-design,
having an average age of 8.5 years and an aggregate carrying
capacity of 3.8 million dwt. Our fleet consists of 14 Panamax class
vessels, 10 Kamsarmax class vessels, 13 post- Panamax class vessels
and 4 Capesize class vessels, all built from 2003 onwards.
Set out below is a table showing the Company’s
vessels and their contracted employment as of February 14,
2019:
Vessel Name |
DWT |
Year Built |
Country of construction |
Gross Charter Rate [USD/day]1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
$4,750 |
February 2019 |
February 2019 |
Koulitsa |
76,900 |
2003 |
Japan |
$12,500 |
January 2019 |
May 2019 |
Paraskevi |
74,300 |
2003 |
Japan |
$12,750 |
December 2018 |
April 2019 |
Vassos |
76,000 |
2004 |
Japan |
$7,935 |
February 2019 |
July 2019 |
Katerina |
76,000 |
2004 |
Japan |
$9,000 |
May 2018 |
March 2019 |
Maritsa |
76,000 |
2005 |
Japan |
$4,034 |
January 2019 |
March 2019 |
Efrossini |
75,000 |
2012 |
Japan |
$8,750 |
February 2019 |
April 2019 |
Zoe |
75,000 |
2013 |
Japan |
$8,200$9,100 |
November 2017February 2019 |
February 2019July 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
$5,873 |
February 2019 |
March 2019 |
Kypros Sea |
77,100 |
2014 |
Japan |
$13,900$13,850 |
August 2018April 2019 |
April 2019December 2019 |
Kypros Bravery |
78,000 |
2015 |
Japan |
$14,200 |
September 2018 |
May 2019 |
Kypros Sky |
77,100 |
2015 |
Japan |
|
|
|
Kypros Loyalty |
78,000 |
2015 |
Japan |
$12,850$13,850 |
January 2018March 2019 |
March 2019November 2019 |
Kypros Spirit |
78,000 |
2016 |
Japan |
$10,536 |
February 2019 |
April 2019 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
$14,500 |
April 2018 |
April 2019 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
$9,400 |
February 2019 |
April 2019 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
$9,083 |
February 2019 |
June 2019 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
$14,150 |
June 2018 |
April 2019 |
Pedhoulas Builder |
81,600 |
2012 |
China |
$9,900 |
June 2018 |
August 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
$13,000 |
July 2018 |
March 2019 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
$12,750 |
December 2018 |
April 2019 |
Pedhoulas Cherry |
82,000 |
2015 |
China |
$15,250 |
October 2018 |
February 2019 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
$10,000 |
March 2018 |
May 2019 |
Pedhoulas Cedrus |
81,800 |
2018 |
Japan |
$15,500 |
June 2018 |
April 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
$14,500 |
November 2018 |
June 2019 |
Xenia |
87,000 |
2006 |
Japan |
$12,500 |
June 2018 |
June 2019 |
Sophia |
87,000 |
2007 |
Japan |
$14,400 |
November 2018 |
April 2019 |
Eleni |
87,000 |
2008 |
Japan |
$14,950 |
January 2019 |
June 2019 |
Martine |
87,000 |
2009 |
Japan |
$6,054 |
February 2019 |
March 2019 |
Andreas K |
92,000 |
2009 |
South Korea |
$3,137 |
February 2019 |
March 2019 |
Panayiota K |
92,000 |
2010 |
South Korea |
$13,750 |
August 2018 |
May 2019 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
$13,950 |
January 2019 |
February 2019 |
Venus Heritage |
95,800 |
2010 |
Japan |
$13,200 |
November 2017 |
March 2019 |
Venus History |
95,800 |
2011 |
Japan |
$14,750 |
January 2018 |
April 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
$14,500 |
January 2019 |
May 2019 |
Troodos Sun |
85,000 |
2016 |
Japan |
$15,950 |
March 2018 |
February 2019 |
Troodos Air |
85,000 |
2016 |
Japan |
$12,500 |
May 2018 |
April 2019 |
Capesize |
Mount Troodos |
181,400 |
2009 |
Japan |
BCI+3.5%4 |
November 2018 |
September 2019 |
Kanaris |
178,100 |
2010 |
China |
$26,5625 |
September 2011 |
June 2031 |
Pelopidas |
176,000 |
2011 |
China |
$38,000 |
January 2012 |
January 2022 |
Lake Despina |
181,400 |
2014 |
Japan |
$24,3766 |
January 2014 |
January 2024 |
Total dwt of existing fleet |
3,777,000 |
|
Orderbook |
TBN |
85,000 |
1H 2020 |
Japan |
|
|
|
- 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 14, 2019, 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 favour of the
Company after the second year of the bareboat charter, at annual
intervals and predetermined purchase price.
- A period time charter at a gross daily charter rate linked to
the Baltic Capesize Index (“BCI”) plus a premium.
- Charterer agreed to reimburse us for part of the cost of the
scrubber and BWTS to be installed on the vessel, which is recorded
by increasing the recognised daily charter rate by $634 over the
remaining tenor of the time charter party.
- 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 14, 2019 was:
2019 (remaining) |
33% |
2019 (full year) |
41% |
2020 |
7% |
2021 |
7% |
Order book, newbuilds capital
expenditure requirements and liquidity
As of December 31, 2018, the remaining order
book of the Company consisted of one Post-Panamax class vessel with
scheduled delivery date in the first half of 2020 and aggregate
remaining capital expenditure of $30.4 million of which $7.0
million is payable within 2019 and $23.4 million is payable within
2020. The Company has the option to finance up to $13.2 million of
the remaining capital expenditure of the vessel through the
periodic issuance of the Company’s common stock to the seller.
As of December 31, 2018, we had liquidity of
$92.5 million consisting of $81.8 million in cash and bank time
deposits, $10.7 million in restricted cash.
As of February 14, 2019, we had liquidity
of $94.4 million consisting of $84.0 million in cash and bank time
deposits and $10.4 million in restricted cash, while orderbook and
capital expenditure requirements remained unchanged since year end
2018.
Leverage
As of December 31, 2018, our consolidated
leverage5, representing total consolidated liabilities divided by
total consolidated market adjusted assets, was 56% versus 60% as of
December 31, 2017.
The debt repayment schedule as of February 14,
2019, following the conclusion of all formal arrangements in
connection to the previously announced refinancings, is presented
in Table 1:
Table 1: Repayment Schedule on an annual
basis($ in millions)
|
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
TOTAL |
Repayment schedule as of February 14, 2019 |
35.5 |
62.9 |
81.5 |
83.1 |
72.3 |
193.8 |
32.9 |
1.3 |
14.4 |
577.7 |
|
|
|
|
|
|
|
|
|
|
|
Update on Dry-docking schedule, Ballast Water Treatment
System and Scrubbers installation
As of February 14, 2019, the Company has
installed Ballast Water Treatment System (“BWTS”) in eight vessels.
During 2019, we expect to install BWTS in 12 vessels concurrently
with their dry-docking or scrubber installation.
As of February 14, 2019, the Company has
completed the detailed engineering study for scrubber installation
for five vessels and is in the final stage of completion, within
the first quarter of 2019, of the study for another eight vessels.
During 2019, we expect to install scrubbers in 19 vessels, the
majority concurrently with their dry-docking, targeting to install
four in the second quarter, nine in the third quarter and six in
the fourth quarter of 2019.
During 2020, we expect to install an additional
scrubber on one of our Capes chartered under a long period time
charter at the request of the charterer, the cost of which will be
reimbursed by the charterer.
The anticipated aggregate down time per quarter
is approximately zero days, 191 days, 315 days and 210 days for the
first, second, third and fourth quarter of 2019 respectively.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the fourth quarter of 2018. The Company
had 102,564,901 shares of common stock issued and outstanding as of
February 14, 2019, having cancelled 1,790,270 treasury shares
acquired through buy back programs.
The Company declared in January 2019 a cash
dividend of $0.50 per share on each of its 8.00% Series C
Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C)
and 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares
(NYSE: SB.PR.D) for the period from October 30, 2018 to January 29,
2019, which was paid on January 30, 2019 to the respective
shareholders of record as of January 23, 2019.
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: ‘‘We closed 2018 profitably, having refinanced a large
portion of our debt, targeting smooth debt profile for the next
five years and gradual deleverage. We acquired one second-hand
vessel and one resale newbuild for 2020 and bought back one vessel
under sale and lease back agreement. We implement BWTS investments.
In view of IMO 2020 sulphur cap regulation we are installing
scrubbers in about half of our fleet during 2019, while we have
selected to compete on the basis of vessels’ fuel consumption for
the remaining part of our fleet. Since the beginning of 2019 the
charter market has shown material weakness amid trade-war concerns,
disruption of trade patterns and seasonality. Overall we remain
confident that our Company is well positioned ahead of
uncertainties and opportunities that the present environment will
offer.”
Conference Call
On Tuesday, February 19, 2019 at 9:00 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
(877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll
Free Dial In) or +44 (0) 2071 928592 (Standard International Dial
In). Please quote “Safe Bulkers” to the
operator.
A telephonic replay of the conference call will
be available until February 28, 2019, by dialing 1(866) 331-1332
(US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or
+44 (0) 3333 009785 (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
2018 Results
Net income for the fourth quarter of 2018
amounted to $9.5 million compared to net loss of $86.6 million
during the same period in 2017, mainly due to the following
factors:
Net revenues: Net revenues increased by 24% to
$52.6 million for the fourth quarter of 2018, compared to $42.4
million for the same period in 2017, mainly as a result of
improvement in charter rates and to a lesser extent an increase in
the average number of vessels. The Company operated 41.00 vessels
on average during the fourth quarter of 2018, earning a Time
Charter Equivalent (“TCE”) rate6, representing charter revenues net
of commissions and voyage expenses divided by the number of
available days, of $13,875, compared to 38.04 vessels and a TCE
rate of $11,944 during the same period in 2017.
Vessel operating expenses: Vessel operating
expenses increased by 20% to $16.4 million for the fourth quarter
of 2018 compared to $13.7 million for the same period in 2017,
mainly as a result of: i) 8% increase in average number of
vessels to 41.00 vessels for the fourth quarter of 2018, compared
to 38.04 vessels for the same period in 2017, ii) expense of $0.9
million related to three dry-dockings fully completed and one
dry-docking partially completed during the fourth quarter of 2018,
compared to zero for the same period in 2017, iii) pre-delivery
expenses of $0.05 million for the fourth quarter of 2018, compared
to $0.1 million for the same period in 2017 and iv) increased
maintenance, general stores, and spares. The Company expenses
dry-docking and pre-delivery costs as incurred, which costs may
vary from period to period. Vessel operating expenses excluding
vessel dry-docking and pre-delivery costs increased by 14% to $15.5
million for the fourth quarter of 2018, compared to $13.6 million
for the same period in 2017. Dry-docking expense is related to the
number of dry-dockings in each period and pre-delivery expenses to
the number of vessel deliveries and second hand acquisitions in
each period. Certain other shipping companies may defer and
amortize dry-docking expense and many do not include dry-docking
expenses within vessel operating expenses costs and present
these separately.
Depreciation: Depreciation decreased by 4% to
$12.5 million for the fourth quarter of 2018, compared to $13.0
million for the same period in 2017, as a result of the lower cost
basis of four of our vessels following the impairment recorded on
December 31, 2017, partly offset by the increase in the vessel
ownership days during the fourth quarter of 2018.
Interest expense: Interest expense increased to
$6.7 million in the fourth quarter of 2018 compared to $5.6 million
for the same period in 2017, as a result of the increased USD
LIBOR7 affecting the weighted average interest rate of our loans
and credit facilities, notwithstanding the decrease in our weighted
average indebtedness.
Voyage expenses: Voyage expenses increased to
$1.5 million for the fourth quarter of 2018 compared to $0.6
million for the same period in 2017, as a result of increased
vessel repositioning expenses caused by higher fuel prices.
Impairment loss: Consistent with prior periods,
for the fourth quarter of 2018 we reviewed all our vessels for
impairment and none were found to be impaired. We had recorded an
impairment charge of $91.3 million for the fourth quarter of 2017,
as a result of writing down four of our vessels to their estimated
fair market value. Impairment charge is a non-cash item.
Daily vessel operating expense8: Daily vessel
operating expenses which are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period, increased by 11% to $4,353 for the fourth quarter of
2018 compared to $3,914 for the same period in 2017 due to the
increase of vessel operating expenses discussed above. Daily vessel
operating expenses excluding dry-docking and pre-delivery expenses
increased by 6% to $4,109 for the fourth quarter of 2018 compared
to $3,887 for the same period in 2017.
Daily general and administrative expenses8:
Daily general and administrative expenses, which include management
fees payable to our Managers9, increased by 18% to $1,384 for the
fourth quarter of 2018, compared to $1,175 for the same period in
2017, mainly due to increased management fees charged by our
Managers.
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, |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
REVENUES: |
|
|
|
|
|
|
|
Revenues |
44,101 |
|
|
54,946 |
|
|
154,040 |
|
|
201,548 |
|
Commissions |
(1,723 |
) |
|
(2,373 |
) |
|
(6,008 |
) |
|
(8,357 |
) |
Net revenues |
42,378 |
|
|
52,573 |
|
|
148,032 |
|
|
193,191 |
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage
expenses |
(573 |
) |
|
(1,458 |
) |
|
(3,932 |
) |
|
(6,378 |
) |
Vessel
operating expenses |
(13,699 |
) |
|
(16,418 |
) |
|
(52,794 |
) |
|
(63,512 |
) |
Depreciation |
(12,981 |
) |
|
(12,518 |
) |
|
(51,424 |
) |
|
(48,067 |
) |
General
and administrative expenses |
(4,114 |
) |
|
(5,221 |
) |
|
(16,118 |
) |
|
(19,242 |
) |
Loss on
sale of assets |
— |
|
|
— |
|
|
(120 |
) |
|
— |
|
Other
operating expense |
— |
|
|
— |
|
|
(390 |
) |
|
— |
|
Early
redelivery cost |
(996 |
) |
|
— |
|
|
(1,263 |
) |
|
(105 |
) |
Impairment loss |
(91,293 |
) |
|
— |
|
|
(91,293 |
) |
|
|
Operating (loss)/income |
(81,278 |
) |
|
16,958 |
|
|
(69,302 |
) |
|
55,887 |
|
OTHER (EXPENSE)
/ INCOME: |
|
|
|
|
|
|
|
Interest
expense |
(5,558 |
) |
|
(6,680 |
) |
|
(23,224 |
) |
|
(25,713 |
) |
Other finance (cost)/income |
(103 |
) |
|
(338 |
) |
|
7,651 |
|
|
(973 |
) |
Interest
income |
193 |
|
|
236 |
|
|
799 |
|
|
929 |
|
Gain on
derivatives |
21 |
|
|
— |
|
|
72 |
|
|
18 |
|
Foreign
currency gain/(loss) |
237 |
|
|
(213 |
) |
|
1,782 |
|
|
(670 |
) |
Amortization and write-off of deferred finance charges |
(72 |
) |
|
(426 |
) |
|
(2,457 |
) |
|
(1,794 |
) |
Net (loss)/income |
(86,560 |
) |
|
9,537 |
|
|
(84,679 |
) |
|
27,684 |
|
Less
Preferred dividend |
2,940 |
|
|
2,873 |
|
|
12,316 |
|
|
11,384 |
|
Less
Preferred deemed dividend |
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Net
(loss)/income available to common shareholders |
(89,500 |
) |
|
6,664 |
|
|
(99,141 |
) |
|
16,300 |
|
(Loss)/Earnings per share basic and
diluted |
(0.88 |
) |
|
0.07 |
|
|
(0.98 |
) |
|
0.16 |
|
Weighted average number of shares |
101,531,352 |
|
|
102,100,829 |
|
|
100,932,876 |
|
|
101,604,339 |
|
|
|
Twelve-Months Period Ended December
31, |
|
|
2017 |
|
2018 |
(In
millions of U.S. Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by
operating activities |
|
50.1 |
|
|
85.4 |
|
Net cash used in
investing activities |
|
(39.6 |
) |
|
(63.7 |
) |
Net cash used in
financing activities |
|
(47.0 |
) |
|
(15.6 |
) |
Net (decrease)/increase
in cash and cash equivalents and restricted cash |
|
(36.5 |
) |
|
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
|
December 31, 2017 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
Cash,
time deposits, and restricted cash |
|
60,016 |
|
|
82,084 |
|
Other
current assets |
|
19,070 |
|
|
19,178 |
|
Vessels,
net |
|
942,876 |
|
|
955,291 |
|
Advances
for vessels |
|
3,653 |
|
|
8,596 |
|
Restricted cash non-current |
|
8,651 |
|
|
10,401 |
|
Other
non-current assets |
|
831 |
|
|
649 |
|
Total assets |
|
1,035,097 |
|
|
1,076,199 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
portion of long-term debt |
|
25,588 |
|
|
36,185 |
|
Other
current liabilities |
|
11,345 |
|
|
18,421 |
|
Long-term
debt, net of current portion |
|
541,816 |
|
|
538,508 |
|
Other
non-current liabilities |
|
— |
|
|
253 |
|
Mezzanine
equity |
|
— |
|
|
16,998 |
|
Shareholders’ equity |
|
456,348 |
|
|
465,834 |
|
Total liabilities and equity |
|
1,035,097 |
|
|
1,076,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2RECONCILIATION 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) |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
Net (Loss)/Income - Adjusted Net
Income/(Loss) |
|
|
|
|
|
|
|
|
Net
(Loss)/Income |
|
(86,560 |
) |
|
9,537 |
|
|
(84,679 |
) |
|
27,684 |
|
Plus Loss on sale of
assets |
|
— |
|
|
— |
|
|
120 |
|
|
— |
|
Less Gain on
derivatives |
|
(21 |
) |
|
— |
|
|
(72 |
) |
|
(18 |
) |
Plus Foreign currency
(gain)/loss |
|
(237 |
) |
|
213 |
|
|
(1,782 |
) |
|
670 |
|
Plus Early redelivery
cost |
|
996 |
|
|
— |
|
|
1,263 |
|
|
105 |
|
Plus Other operating
expense |
|
— |
|
|
— |
|
|
390 |
|
|
— |
|
Plus Impairment loss |
|
91,293 |
|
|
— |
|
|
91,293 |
|
|
— |
|
Less Gain on debt
extinguishment |
|
— |
|
|
— |
|
|
(8,189 |
) |
|
— |
|
Adjusted Net income/(loss) |
|
5,471 |
|
|
9,750 |
|
|
(1,656 |
) |
|
28,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA - Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net
(loss)/income |
|
(86,560 |
) |
|
9,537 |
|
|
(84,679 |
) |
|
27,684 |
|
Plus Net Interest
expense |
|
5,365 |
|
|
6,444 |
|
|
22,425 |
|
|
24,784 |
|
Plus Depreciation |
|
12,981 |
|
|
12,518 |
|
|
51,424 |
|
|
48,067 |
|
Plus Amortization |
|
72 |
|
|
426 |
|
|
2,457 |
|
|
1,794 |
|
EBITDA |
|
(68,142 |
) |
|
28,925 |
|
|
(8,373 |
) |
|
102,329 |
|
Plus Loss on sale of
assets |
|
— |
|
|
— |
|
|
120 |
|
|
— |
|
Plus Early redelivery cost |
|
996 |
|
|
— |
|
|
1,263 |
|
|
105 |
|
Plus Other Operating expense |
|
— |
|
|
— |
|
|
390 |
|
|
— |
|
Less Gain on derivatives |
|
(21 |
) |
|
— |
|
|
(72 |
) |
|
(18 |
) |
Plus Foreign currency (gain)/loss |
|
(237 |
) |
|
213 |
|
|
(1,782 |
) |
|
670 |
|
Plus Impairment loss |
|
91,293 |
|
|
— |
|
|
91,293 |
|
|
— |
|
Less Gain on debt extinguishment |
|
— |
|
|
— |
|
|
(8,189 |
) |
|
— |
|
ADJUSTED
EBITDA |
|
23,889 |
|
|
29,138 |
|
|
74,650 |
|
|
103,086 |
|
(Loss)/Earnings
per share |
|
|
|
|
|
|
|
|
Net
(Loss)/income |
|
(86,560 |
) |
|
9,537 |
|
|
(84,679 |
) |
|
27,684 |
|
Less Preferred
dividend |
|
2,940 |
|
|
2,873 |
|
|
12,316 |
|
|
11,384 |
|
Less Preferred deemed
dividend |
|
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Net (Loss)/income
available to common shareholders |
|
(89,500 |
) |
|
6,664 |
|
|
(99,141 |
) |
|
16,300 |
|
Weighted average number of
shares |
|
101,531,352 |
|
|
102,100,829 |
|
|
100,932,876 |
|
|
101,604,339 |
|
(Loss)/Earnings
per share |
|
(0.88 |
) |
|
0.07 |
|
|
(0.98 |
) |
|
0.16 |
|
Adjusted Earnings/(Loss) per share |
|
|
|
|
|
|
|
|
Adjusted Net
Income/(Loss) |
|
5,471 |
|
|
9,750 |
|
|
(1,656 |
) |
|
28,441 |
|
Less Preferred
dividend |
|
2,940 |
|
|
2,873 |
|
|
12,316 |
|
|
11,384 |
|
Less Deemed dividend |
|
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Adjusted Net income/(loss)
available to common shareholders |
|
2,531 |
|
|
6,877 |
|
|
(16,118 |
) |
|
17,057 |
|
Weighted average number of
shares |
|
101,531,352 |
|
|
102,100,829 |
|
|
100,932,876 |
|
|
101,604,339 |
|
Adjusted Earnings/(Loss) per share |
|
0.02 |
|
|
0.07 |
|
|
(0.16 |
) |
|
0.17 |
|
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, early redelivery cost,
other operating expense, gain/(loss) on foreign currency,
impairment loss and gain on debt extinguishment.- Adjusted Net
income/(loss) represents Net income/(loss) before loss on sale of
assets, gain/(loss) on derivatives, early redelivery cost, other
operating expense, gain/(loss) on foreign currency,
impairment loss and gain on debt extinguishment.- Adjusted
earnings/(loss) per share represents Adjusted Net income/(loss)
less preferred 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 analysing 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,
early redelivery cost, other operating expense, gain/(loss) on
foreign currency impairment loss and gain on debt extinguishment,
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, early redelivery cost, other operating
expense, gain/(loss) on foreign currency, impairment loss and
gain on debt extinguishment, 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 3: FLEET DATA AND AVERAGE DAILY
INDICATORS
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period Ended December
31, |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at
period’s end |
39 |
|
|
41 |
|
|
39 |
|
|
41 |
|
Average age of fleet
(in years) |
7.51 |
|
|
8.33 |
|
|
7.51 |
|
|
8.33 |
|
Ownership days (1) |
3,500 |
|
|
3,772 |
|
|
13,858 |
|
|
14,568 |
|
Available days (2) |
3,500 |
|
|
3,684 |
|
|
13,788 |
|
|
14,258 |
|
Operating days (3) |
3,492 |
|
|
3,642 |
|
|
13,673 |
|
|
14,075 |
|
Fleet utilization
(4) |
99.8 |
% |
|
96.6 |
% |
|
98.7 |
% |
|
96.6 |
% |
Average number of
vessels in the period (5) |
38.04 |
|
|
41.00 |
|
|
37.97 |
|
|
39.91 |
|
AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
Time charter equivalent
rate (6) |
$ |
11,944 |
|
|
$ |
13,875 |
|
|
$ |
10,451 |
|
|
$ |
13,102 |
|
Daily vessel operating
expenses (7) |
|
3,914 |
|
|
|
4,353 |
|
|
|
3,810 |
|
|
|
4,360 |
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (8) |
|
3,887 |
|
|
|
4,109 |
|
|
|
3,731 |
|
|
|
4,141 |
|
Daily general and
administrative expenses (9) |
|
1,175 |
|
|
|
1,384 |
|
|
|
1,163 |
|
|
|
1,321 |
|
TIME
CHARTER EQUIVALENT RATE RECONCILIATION |
Revenues |
$ 44,101 |
|
|
$54,946 |
|
|
$154,040 |
|
|
$201,548 |
|
Less commissions |
(1,723) |
|
|
(2,373) |
|
|
(6,008) |
|
|
(8,357) |
|
Less voyage
expenses |
(573) |
|
|
(1,458) |
|
|
(3,932) |
|
|
(6,378) |
|
Time charter equivalent
revenue |
$ 41,805 |
|
|
$ 51,115 |
|
|
$ 144,100 |
|
|
$ 186,813 |
|
Available days (2) |
3,500 |
|
|
3,684 |
|
|
13,788 |
|
|
14,258 |
|
Time charter equivalent
rate (6) |
$ 11,944 |
|
|
$ 13,875 |
|
|
$ 10,451 |
|
|
$ 13,102 |
|
______
(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. TCE rate is a standard
shipping industry performance measure used primarily to compare
daily earnings generated by vessels on period time charters and
spot time charters with daily earnings generated by vessels on
voyage charters, because charter rates for vessels on voyage
charters are generally not expressed in per day amounts, while
charter rates for vessels on period time charters and spot time
charters generally are expressed in such amounts. We have only
rarely employed our vessels on voyage charters and, as a result,
generally our TCE rates approximate our time charter rates. (7)
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period. Vessel operating expenses include crewing, insurance,
lubricants, spare parts, provisions, stores, repairs, maintenance
including dry-docking, statutory and classification expenses and
other miscellaneous items.(8) Daily vessel operating expenses
excluding dry-docking and pre-delivery expenses are calculated by
dividing vessel operating expenses excluding dry-docking and
pre-delivery expenses for the relevant period by ownership days for
such period. This measure assists our management and investors by
increasing the comparability of our performance from period to
period. Dry-docking expenses include costs of shipyard, paints and
agent expenses and pre-delivery expenses include initially supplied
spare parts, stores, provisions and other miscellaneous items
provided to a newbuild or second hand acquisition prior to their
operation.(9) Daily general and administrative expenses are
calculated by dividing general and administrative expenses for the
relevant period by ownership days for such period. Daily general
and administrative expenses include daily management fees payable
to our Managers and daily company administration expenses.
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 C
preferred stock and series D preferred stock are listed on the
NYSE, and trade under the symbols “SB”, “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 1934, as amended, and in Section 21E of the Securities Act
of 1933, 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
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25
887200E-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) 661-7526
E-Mail:safebulkers@capitallink.com
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, early redelivery cost, other
operating expense,gain/(loss) on foreign currency, impairment loss
and gain on debt extinguishment. See Table 2.
2 EBITDA is a non-GAAP measure and represents Net income/(loss)
plus net interest expense, tax, depreciation and amortization. See
Table 2.
3 Adjusted EBITDA is a non-GAAP measure and represents EBITDA
before loss on sale of assets, gain/(loss) on derivatives, early
redelivery cost, other operating expense,gain/(loss) on foreign
currency, impairment loss and gain on debt extinguishment. See
Table 2.
4 Earnings/(loss) per share and Adjusted Earnings/(loss) per
share represent Net Income/(loss) and Adjusted Net income/(loss)
less preferred dividend and preferred deemed dividend divided
by the weighted average number of shares respectively. See Table
2.
5Consolidated leverage is a non-GAAP measure and
represents total consolidated liabilities divided by total
consolidated market adjusted assets. Total consolidated market
adjusted assets are based on the market value of all vessels
(before scrubber installation), owned or leased on a finance lease
taking into account their employment, and the book value of all
other assets. This measure assists our management and investors by
increasing the comparability of our leverage from period to
period.
6 See Table 3.
7 London interbank offered rate.
8 See Table 3.
9 Safety Management Overseas S.A. and Safe Bulkers Management
Limited, each of which is a related party that is referred to in
this press release as “our Manager” and collectively “our
Managers’’.
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