Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three months period ended
March 31, 2019.
Summary of First Quarter 2019 Results |
|
Three-Months Period Ended March
31, |
(In millions except for per share data) |
|
2018 |
|
2019 |
% |
Net revenues |
$ |
43.5 |
$ |
48.3 |
11% |
Net income |
|
6.0 |
|
5.4 |
(10%) |
Adjusted net income1 |
|
5.7 |
|
5.7 |
- |
EBITDA2 |
|
23.5 |
|
24.6 |
5% |
Adjusted EBITDA3 |
|
23.2 |
|
24.9 |
7% |
Earnings per share basic and diluted4 |
$ |
0.03 |
$ |
0.03 |
|
Adjusted earnings per share basic and
diluted4 |
$ |
0.03 |
$ |
0.03 |
|
Average Daily results in U.S. Dollars |
|
|
|
|
|
|
Time charter equivalent rate5 |
|
11,999 |
12,280 |
2% |
Daily vessel operating expenses6 |
|
4,132 |
4,153 |
1% |
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses7 |
|
4,047 |
4,150 |
3% |
Daily general and administrative expenses8 |
|
1,184 |
1,374 |
16% |
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: ‘‘We started 2019 profitably despite the material
weakness of the charter market amid trade-war concerns, disruption
of trade patterns due to natural disasters and seasonality inherent
in the industry. We are on schedule in implementing our
environmental investments installing scrubbers in approximately
half of our fleet during 2019 in anticipation of the effectiveness
of the IMO sulphur cap regulations in 2020. We also remain
committed to installing ballast water treatment systems in each of
our vessels. Overall, we remain confident that our Company is
well positioned ahead of the uncertainties and opportunities
presented by the current operating environment.” Chartering
our fleet
Our vessels are used to transport bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes. We intend to employ our vessels on both period time
charters and spot time charters, according to our assessment of
market conditions, with some of the world’s largest consumers of
marine drybulk transportation services. The vessels we deploy on
period time charters provide us with relatively stable cash flow
and high utilization rates, while the vessels we deploy in the spot
market allow us to maintain our flexibility in low charter market
conditions.
Table 1: Contracted employment profile of
fleet ownership days as of May 23, 2019
|
2019 (remaining) |
43% |
|
|
2019 (full year) |
66% |
|
|
2020 |
9% |
|
|
2021 |
7% |
|
Table 2: Detailed fleet and employment
profile as of May 23, 2019
Vessel Name |
DWT |
Year Built |
Country of construction |
Daily Gross Charter Rate1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
$10,650 |
March 2019 |
July 2019 |
Koulitsa |
76,900 |
2003 |
Japan |
$10,800 |
May 2019 |
December 2019 |
Paraskevi |
74,300 |
2003 |
Japan |
|
|
|
Vassos |
76,000 |
2004 |
Japan |
$8,378 |
February 2019 |
October 2019 |
Katerina |
76,000 |
2004 |
Japan |
$9,700 |
May 2019 |
June 2019 |
Maritsa |
76,000 |
2005 |
Japan |
$10,325 |
March 2019 |
December 2019 |
Efrossini |
75,000 |
2012 |
Japan |
$10,000 |
May 2019 |
July 2019 |
Zoe |
75,000 |
2013 |
Japan |
$9,477 |
February 2019 |
November 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
$19,738 |
May 2019 |
July 2019 |
Kypros Sea |
77,100 |
2014 |
Japan |
$13,850 |
May 2019 |
December 2019 |
Kypros Bravery |
78,000 |
2015 |
Japan |
$14,200 |
September 2018 |
July 2019 |
Kypros Sky |
77,100 |
2015 |
Japan |
$14,000 |
May 2019 |
November 2019 |
Kypros Loyalty |
78,000 |
2015 |
Japan |
$13,850 |
March 2019 |
November 2019 |
Kypros Spirit |
78,000 |
2016 |
Japan |
$10,000 |
April 2019 |
May 2019 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
$11,350 |
March 2019 |
January 2020 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
$12,000 |
May 2019 |
March 2020 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
$9,696 |
February 2019 |
October 2019 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
$10,850 |
April 2019 |
June 2020 |
Pedhoulas Builder |
81,600 |
2012 |
China |
$9,000 |
May 2019 |
June 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
$14,240 |
May 2019 |
June 2019 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
$12,750 |
December 2018 |
June 2019 |
Pedhoulas Cherry |
82,000 |
2015 |
China |
$11,000 |
May 2019 |
June 2019 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
$10,000 |
April 2019 |
June 2019 |
Pedhoulas Cedrus |
81,800 |
2018 |
Japan |
$9,993 |
May 2019 |
July 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
$14,500 |
November 2018 |
June 2019 |
Xenia |
87,000 |
2006 |
Japan |
$12,500 |
June 2018 |
August 2019 |
Sophia |
87,000 |
2007 |
Japan |
$10,750 |
May 2019 |
June 2019 |
Eleni |
87,000 |
2008 |
Japan |
$14,950 |
January 2019 |
June 2019 |
Martine |
87,000 |
2009 |
Japan |
|
|
|
Andreas K |
92,000 |
2009 |
South Korea |
$6,500 |
April 2019 |
June 2019 |
Panayiota K |
92,000 |
2010 |
South Korea |
$13,750 |
August 2018 |
June 2019 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
$9,250$11,750 |
April 2019June 2019 |
May 2019June 2019 |
Venus Heritage |
95,800 |
2010 |
Japan |
$13,200 |
November 2017 |
June 2019 |
Venus History |
95,800 |
2011 |
Japan |
$11,000 |
May 2019 |
July 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
$14,500 |
January 2019 |
June 2019 |
Troodos Sun |
85,000 |
2016 |
Japan |
$14,000 |
April 2019 |
July 2019 |
Troodos Air |
85,000 |
2016 |
Japan |
$12,500 |
May 2018 |
September 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 May
23, 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.
- MV Pedhoulas Farmer and MV Pedhoulas Rose were sold and leased
back, in 2015 and 2017, respectively, 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 a fixed amount for 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.
Liquidity
As of May 23, 2019, we had liquidity of $95.4
million consisting of $85.0 million in cash and bank time deposits
and $10.4 million in restricted cash.
Leverage and repayment
profile
As of March 31, 2019, our consolidated
leverage9, representing total consolidated liabilities divided by
total consolidated assets, was 58%.
Table 3: Repayment Schedule as of March
31, 2019, on an annual basis($ in
millions)
|
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
TOTAL |
Repayment schedule |
26.1 |
62.9 |
81.5 |
83.1 |
72.3 |
193.8 |
32.9 |
1.3 |
14.4 |
568.3 |
Order book
As of May 23, 2019, the remaining order book of
the Company consisted of one Post-Panamax class vessel with
scheduled delivery date in the first half of 2020.
Capital expenditure and financing
requirements related to order book
As of May 23, 2019, the aggregate remaining
capital expenditure in relation to the order book was $30.4
million, of which $7.0 million is payable in 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 related to the
order book through the periodic issuance of the Company’s common
stock.
Environmental Social Responsibility
Our Managers are certified in accordance with
ISO 14001 and ISO 50001 related to environmental performance and
energy efficiency, respectively.
We have obtained environmental notation for 39
out of 41 of our vessels for the prevention of sea and air
pollution, and we are in the process of obtaining such class
notation for the remaining two vessels.
We adopted at an early stage the International
Convention for the Control and Management of Ships’ Ballast Water
and Sediments (the “BWM Convention”). We are also installing United
States Coast Guard (“USCG”) approved Ballast Water Treatment
Systems (“BWTS”) in all of our vessels.
Furthermore, we are preparing for the global
0.5% sulfur cap on marine fuels that will come into effect on
January 1, 2020 (the “IMO 2020”). In connection therewith, we
are installing exhaust gas cleaning devices (“Scrubbers”) in almost
half of our fleet, having decided to compete for such vessels on
the basis of the price differential between the compliant fuels and
the 3.5% sulfur content Heavy Fuel Oil. For our remaining fleet
that we have decided to compete on the basis of fuel consumption by
using compliant fuels, and we are progressing with preparation and
ship implementation plans for a smooth and timely transition to the
new fuels.
Table 4 shows the timing and progress of our
environmental investments.
Table 4: Environmental investments
schedule as of May 23, 2019
|
|
Completed installations |
Expected installations in 2019 |
|
|
BWTS |
15 |
12 |
|
|
Scrubbers |
Q2 19 |
Q3 19 |
Q4 19 |
Q1 20 |
|
|
Scheduled installations |
3 |
10 |
6 |
1 |
|
|
Expected down time in days* |
110 |
350 |
210 |
35 |
|
*Down time includes scheduled dry-docking or
special surveys for 12 vessels to be performed concurrently with
their scrubber installation.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the first quarter of 2019. The Company
had 101,253,267 shares of common stock issued and outstanding as of
May 23, 2019, following the cancellation during the first quarter
of 2019 of 1,790,270 treasury shares acquired through buy back
programs.
The Company declared 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 January 30, 2019 to April 29, 2019, which was
paid on April 30, 2019 to the respective shareholders of record as
of April 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.
Conference Call
On Tuesday, May 28, 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 June 7, 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 First Quarter
2019 Results
Net income for the first quarter of 2019
amounted to $5.4 million compared to $6.0 million during the same
period in 2018, mainly due to the following factors:
Net revenues: Net revenues increased by 11% to
$48.3 million for the first quarter of 2019, compared to $43.5
million for the same period in 2018, mainly as a result of an
increase in the average number of vessels. The Company operated
41.00 vessels on average during the first quarter of 2019, earning
a Time Charter Equivalent (“TCE”) rate10, representing charter
revenues net of commissions and voyage expenses divided by the
number of available days, of $12,280, compared to 39.00 vessels and
a TCE rate of $11,999 during the same period in 2018.
Vessel operating expenses: Vessel operating
expenses increased by 6% to $15.3 million for the first quarter of
2019 compared to $14.5 million for the same period in 2018, mainly
as a result of a: i) 5% increase in average number of vessels to
41.00 vessels for the first quarter of 2019, compared to 39.00
vessels for the same period in 2018, ii) 33% increase in lubricants
to $1.2 million for the first quarter of 2019, compared to $0.9
million for the same period in 2018 mainly as a result of the
increase in prices. The Company expenses dry-docking and
pre-delivery costs as incurred, which costs may vary from period to
period. Excluding dry-docking and pre-delivery costs of $0
and $0.3 million for the first quarter of 2019 and 2018,
respectively, vessel operating expenses increased by 8% to $15.3
million for the first quarter of 2019, compared to $14.2 million
for the same period in 2018. 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 increased by 6% to
$12.3 million for the first quarter of 2019, compared to $11.6
million for the same period in 2018, as a result of the increase in
the average number of vessels operated by the Company during the
first quarter of 2019.
Interest expense: Interest expense increased to
$7.0 million in the first quarter of 2019 compared to $5.8 million
for the same period in 2018, as a result of the increased USD
LIBOR11 affecting the weighted average interest rate of our loans
and credit facilities and as a result of an increase in our
weighted average indebtedness.
Voyage expenses: Voyage expenses increased to
$3.0 million for the first quarter of 2019 compared to $1.5 million
for the same period in 2018, as a result of increased vessel
repositioning expenses and increased fuel prices.
Daily vessel operating expense12: Daily vessel
operating expenses which are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period, increased by 1% to $4,153 for the first quarter of
2019 compared to $4,132 for the same period in 2018 due to increase
of vessel operating expenses discussed above. Daily vessel
operating expenses excluding dry-docking and pre-delivery expenses
increased by 3% to $4,150 for the first quarter of 2019 compared to
$4,047 for the same period in 2018.
Daily general and administrative expenses13:
Daily general and administrative expenses, which include management
fees payable to our Managers14, increased by 16% to $1,374 for the
first quarter of 2019, compared to $1,184 for the same period in
2018, mainly due to increased management fees charged by our
Managers.
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 Ended March 31, |
|
2018 |
|
2019 |
REVENUES: |
|
|
|
Revenues |
45,352 |
|
50,482 |
Commissions |
(1,851) |
|
(2,197) |
Net revenues |
43,501 |
|
48,285 |
EXPENSES: |
|
|
|
Voyage expenses |
(1,506) |
|
(2,973) |
Vessel operating expenses |
(14,503) |
|
(15,323) |
Depreciation |
(11,601) |
|
(12,280) |
General and administrative expenses |
(4,156) |
|
(5,071) |
Operating income |
11,735 |
|
12,638 |
OTHER (EXPENSE) /
INCOME: |
|
|
|
Interest expense |
(5,786) |
|
(7,029) |
Other finance cost |
(132) |
|
(39) |
Interest income |
214 |
|
422 |
Gain on derivatives |
17 |
|
— |
Foreign currency gain/(loss) |
248 |
|
(239) |
Amortization and write-off of deferred finance charges |
(342) |
|
(334) |
Net income |
5,954 |
|
5,419 |
Less Preferred dividend |
2,858 |
|
2,872 |
Net income available to common shareholders |
3,096 |
|
2,547 |
Earnings per share basic and diluted |
0.03 |
|
0.03 |
Weighted average number of shares |
101,540,728 |
|
101,564,355 |
|
|
|
|
|
|
|
|
|
Three-Months Period Ended March 31, |
|
2018 |
|
2019 |
(In millions of U.S.
Dollars) |
|
|
|
CASH FLOW
DATA |
|
|
|
Net cash provided by operating
activities |
20.1 |
|
9.8 |
Net cash used in investing
activities |
(2.3) |
|
(3.5) |
Net cash used in financing
activities |
(18.2) |
|
(17.3) |
Net decrease in cash and cash
equivalents |
(0.4) |
|
(11) |
|
|
|
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
December 31, 2018 |
|
March 31, 2019 |
ASSETS |
|
|
|
Cash, time deposits, and restricted cash |
82,084 |
|
72,519 |
Other current assets |
19,178 |
|
21,665 |
Vessels, net |
955,291 |
|
942,997 |
Advances for vessels |
8,596 |
|
10,731 |
Restricted cash non-current |
10,401 |
|
10,401 |
Other non-current assets |
649 |
|
693 |
Total assets |
1,076,199 |
|
1,059,006 |
LIABILITIES AND
EQUITY |
|
|
|
Current portion of long-term debt |
36,185 |
|
45,097 |
Other current liabilities |
18,421 |
|
12,353 |
Long-term debt, net of current portion |
538,508 |
|
518,369 |
Other non-current liabilities |
253 |
|
196 |
Mezzanine equity |
16,998 |
|
16,997 |
Shareholders’ equity |
465,834 |
|
465,994 |
Total liabilities and equity |
1,076,199 |
|
1,059,006 |
|
|
|
|
TABLE 5RECONCILIATION OF
ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS
PER SHARE
|
Three-Months Period Ended March 31, |
(In thousands of U.S. Dollars except for share and per share
data) |
2018 |
|
2019 |
Net Income - Adjusted
Net Income |
|
|
|
Net
Income |
5,954 |
|
5,419 |
Less Gain on derivatives |
(17) |
|
— |
Plus Foreign currency
(gain)/loss |
(248) |
|
239 |
Adjusted Net
income |
5,689 |
|
5,658 |
EBITDA - Adjusted
EBITDA |
|
|
|
Net
income |
5,954 |
|
5,419 |
Plus Net Interest expense |
5,572 |
|
6,607 |
Plus Depreciation |
11,601 |
|
12,280 |
Plus Amortization |
342 |
|
334 |
EBITDA |
23,469 |
|
24,640 |
Less Gain on derivatives |
(17) |
|
— |
Plus Foreign currency
(gain)/loss |
(248) |
|
239 |
ADJUSTED
EBITDA |
23,204 |
|
24,879 |
Earnings per
share |
|
|
|
Net
income |
5,954 |
|
5,419 |
Less Preferred dividend |
2,858 |
|
2,872 |
Net income available to common
shareholders |
3,096 |
|
2,547 |
Weighted average number of
shares |
101,540,728 |
|
101,564,355 |
Earnings per
share |
0.03 |
|
0.03 |
Adjusted Earnings per
share |
|
|
|
Adjusted Net
Income |
5,689 |
|
5,658 |
Less Preferred dividend |
2,858 |
|
2,872 |
Adjusted Net income available
to common shareholders |
2,831 |
|
2,786 |
Weighted average number of
shares |
101,540,728 |
|
101,564,355 |
Adjusted Earnings per
share |
0.03 |
|
0.03 |
|
|
|
|
EBITDA, Adjusted EBITDA, Adjusted Net income and
Adjusted earnings per share are not recognized measurements under
US GAAP.- EBITDA represents Net income 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 and gain/(loss) on foreign currency.-
Adjusted Net income represents Net income before loss on sale of
assets, gain/(loss) on derivatives, early redelivery cost and
gain/(loss) on foreign currency.- Adjusted earnings/(loss) per
share represents Adjusted Net income less preferred dividend
divided by the weighted average number of shares.EBITDA, Adjusted
EBITDA, Adjusted Net income and Adjusted earnings 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 and Adjusted earnings
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 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 generally eliminates the
effects of loss on sale of assets, gain/(loss) on derivatives,
early redelivery cost 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 and Adjusted earnings 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 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 and Adjusted earnings 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 and
Adjusted earnings 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 and Adjusted earnings per share should
not be construed as an inference that our future results will be
unaffected by the excluded items.
TABLE 6: FLEET DATA AND AVERAGE DAILY
INDICATORS
|
Three-Months Period Ended March 31, |
FLEET DATA |
2018 |
|
2019 |
Number of vessels at period’s
end |
39 |
|
41 |
Average age of fleet (in
years) |
7.76 |
|
8.58 |
Ownership days (1) |
3,510 |
|
3,690 |
Available days (2) |
3,500 |
|
3,690 |
Operating days (3) |
3,424 |
|
3,642 |
Fleet utilization (4) |
97.5% |
|
98.7% |
Average number of vessels in
the period (5) |
39.00 |
|
41.00 |
AVERAGE DAILY RESULTS |
|
|
|
Time charter equivalent rate (6) |
$ |
11,999 |
|
$ |
12,280 |
Daily vessel operating
expenses (7) |
$ |
4,132 |
|
$ |
4,153 |
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (8) |
$ |
4,047 |
|
$ |
4,150 |
Daily general and
administrative expenses (9) |
$ |
1,184 |
|
$ |
1,374 |
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
(In thousands except for
available days and Time charter equivalent rate) |
|
|
|
|
|
Revenues |
$ |
45,352 |
|
$ |
50,482 |
Less commissions |
|
(1,851) |
|
|
(2,197) |
Less voyage expenses |
|
(1,506) |
|
|
(2,973) |
Time charter equivalent
revenue |
$ |
41,995 |
|
$ |
45,312 |
Available days (2) |
3,500 |
|
3,690 |
Time charter equivalent rate
(6) |
$ |
11,999 |
|
$ |
12,280 |
|
|
|
|
|
|
- Ownership days represents the aggregate number of days in a
period during which each vessel in our fleet has been owned by
us.
- 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.
- 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.
- 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.
- Average number of vessels in the period is calculated by
dividing ownership days in the period by the number of days in that
period.
- 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.
- 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.
- 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. 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.
- 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) 661-7526E-Mail:safebulkers@capitallink.com
1 Adjusted Net income is a non-GAAP measure.
Adjusted Net income represents Net income before loss on sale of
assets, gain/(loss) on derivatives, early redelivery cost and
gain/(loss) on foreign currency. See Table 5.
2 EBITDA is a non-GAAP measure and represents
Net income plus net interest expense, tax, depreciation and
amortization. See Table 5.
3 Adjusted EBITDA is a non-GAAP measure and
represents EBITDA before loss on sale of assets, gain/(loss) on
derivatives, early redelivery cost and gain/(loss) on foreign
currency. See Table 5.
4 Earnings per share and Adjusted Earnings per
share represent Net Income and Adjusted Net income less preferred
dividend divided by the weighted average number of shares
respectively. See Table 5.
5 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. See Table 6.
6 Daily vessel operating expenses are calculated
by dividing vessel operating expenses for the relevant period by
ownership days for such period. See Table 6.
7 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.
See Table 6.
8 Daily general and administrative expenses are
calculated by dividing general and administrative expenses for the
relevant period by ownership days for such period. See Table 6.
9 Consolidated leverage is a non-GAAP measure and represents
total consolidated liabilities divided by total consolidated
assets. Total consolidated 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.
10 See Table 3.
11 London interbank offered rate.
12 See Table 2.
13 See Table 2.
14 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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