Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the
“Company”), a leading provider of marine transportation of dry bulk
commodities, today reported its results for the three and six
months ended June 30, 2017.
Results for the Three and Six Months
Ended June 30, 2017 and 2016
For the second quarter of 2017 the Company’s
GAAP net loss was $13.4 million, or $0.19 loss per diluted
share. For the same period in 2016 the Company’s GAAP net
loss was $24.7 million, or $0.48 loss per diluted share.
For the six months ended June 30, 2017, the
Company’s GAAP net loss was $48.0 million, or $0.67 loss per
diluted share compared to a GAAP net loss of $83.0 million,
or $2.05 loss per diluted share for the prior year
period.
For the six months ended June 30, 2017, the
Company’s adjusted net loss was $29.8 million, or $0.41 adjusted
loss per diluted share, which excludes the impact of a write down
of assets held for sale of $17.7 million and a write off of
deferred financing costs on the credit facility related to those
specific vessels of $0.5 million. For the six months
ended June 30, 2016, the Company’s adjusted net loss
was $58.1 million, or $1.43 adjusted loss per
diluted share, which excludes a loss/write off of vessels and
assets held for sale of $12.4 million, the write off of
deferred financing costs on credit facilities that will no longer
be used of $2.5 million and a charterhire contract
termination fee of $10.0 million (see Non-GAAP Financial Measures
below).
Cash and Cash Equivalents
As of July 21, 2017, the Company had
approximately $148.3 million in cash and cash equivalents.
TCE Revenue
TCE Revenue Earned during the Second Quarter of
2017
- Our Kamsarmax fleet earned $9,273 per day
- Our Ultramax fleet earned $8,360 per day
Voyages Fixed thus far for the Third Quarter of 2017
- Kamsarmax fleet: approximately $8,749 per day for 50% of the
days
- Ultramax fleet: approximately $9,005 per day for 56% of the
days
Recent Significant Events
Reinstatement of Debt Amortization and
Restoration of the Ability to Pay Dividends
During 2016, we entered into agreements with
certain of our lenders to, among other things; defer future
principal repayments under certain of our loan agreements. In
July 2017, we reached agreements in principal with such lenders
whereby principal repayments on our debt totaling $45.4 million
that were previously deferred would be reinstated to their original
form. Under these agreements in principal, we will be
required to make principal payments of approximately $7.3 million
in the third quarter of 2017 and quarterly principal payments
ranging from $1.0 million to $4.5 million per quarter from the
fourth quarter of 2017 through the fourth quarter of 2020.
All restrictions on the payment of dividends
that were put in place as part of prior loan amendments have been
removed from all of our credit facilities.
Completion of the Sale of Vessels
During the second quarter of 2017, we completed
the sale of SBI Cakewalk and SBI Charleston for $22.5 million
each. Net cash proceeds is approximately $24.2 million after
repaying the outstanding loan balance of $20.1 million under the
$39.6 Million Credit Facility.
Newbuilding Vessel Delivery
During the second quarter of 2017, the Company
took delivery of the following newbuilding vessel:
- SBI Jive, a Kamsarmax vessel, delivered from Hudong-Zhonghua
(Group) Co., Ltd.
All 46 vessels in our newbuilding program have been successfully
delivered, all contracted amounts have been paid in full and we
have no further obligations due to any shipyard.
Agreement to Time Charter-In One Ultramax
Vessel
During the second quarter of 2017, we entered into a time
charter-in agreement with an unrelated third party for one Ultramax
vessel. The agreement is for two years at
approximately $10,125 per day. We have the option
to extend the agreement for one year at
approximately $10,885 per day. The time charter is
expected to commence prior to the end of October 2017.
Debt and Liquidity Overview
The Company’s outstanding debt balance, gross of
unamortized deferred financing costs as of June 30, 2017 and
July 21, 2017 are as follows (dollars in thousands).
Credit Facility |
|
Amount Outstanding |
Senior Notes |
|
$ |
73,625 |
|
$409 Million Credit
Facility |
|
179,473 |
|
$330 Million Credit
Facility |
|
260,136 |
|
$42 Million Credit
Facility |
|
38,512 |
|
$67.5 Million Credit
Facility |
|
40,461 |
|
$12.5 Million Credit
Facility |
|
10,379 |
|
$27.3 Million Credit
Facility |
|
19,375 |
|
Total |
|
$ |
621,961 |
|
The Company’s projected quarterly debt
repayments through 2019, including the impact from the reinstated
principal repayments as noted above, is as follows (dollars in
thousands):
Q3 2017 |
(1 |
) |
$ |
13,433 |
|
Q4 2017 |
|
|
9,837 |
|
Q1 2018 |
|
|
9,289 |
|
Q2 2018 |
|
|
9,629 |
|
Q3 2018 |
|
|
9,197 |
|
Q4 2018 |
|
|
8,537 |
|
Q1 2019 |
|
|
8,259 |
|
Q2 2019 |
|
|
8,357 |
|
Q3 2019 |
(2 |
) |
|
82,415 |
|
Q4 2019 |
|
|
10,319 |
|
Total |
|
$ |
169,272 |
|
(1) Relates
to payments expected to be made from July 22, 2017 to September 30,
2017 |
(2)
Includes $73.6 million repayment of Senior Notes due at
maturity |
Financial Results for the Three Months Ended
June 30, 2017 Compared to the Three Months Ended June 30,
2016
The Company had a GAAP net loss of $13.4
million, or $0.19 loss per diluted share for the second quarter of
2017 compared with a GAAP net loss of $24.7 million, or $0.48 loss
per diluted share for the second quarter of 2016.
Time charter equivalent (TCE) revenue, a
Non-GAAP financial measure, is vessel revenues less voyage expenses
(including bunkers, port charges, broker fees and other
miscellaneous expenses that we are unable to recoup under time
charter and pool arrangements). TCE revenue is included herein
because it is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a shipping
company’s performance irrespective of changes in the mix of charter
types (i.e., spot charters, time charters, and pool charters), and
it provides useful information to investors and management.
TCE revenue was $37.6 million for the second
quarter of 2017 and is associated with a day weighted average of 47
vessels owned and one vessel time chartered-in compared to $17.4
million during the prior year quarter, which was associated with a
day weighted average of 34 vessels owned and three vessels time
chartered-in. TCE revenue per day was $8,733 and $5,303 for the
second quarter of 2017 and 2016, respectively. Increased
worldwide demand across all bulk sectors, regions and commodities,
as well as a reduction in supply caused rates to increase compared
to the prior year period. Overall TCE revenue increased
significantly versus the prior year period due to the increase in
rates combined with the increase in revenue days associated with
the growth of our fleet. While TCE rates continued the sequential
quarter on quarter growth, rates somewhat stabilized in the second
quarter of 2017 as demand for commodities slowed due to China
increasing domestic coal and iron ore production.
Vessel operating costs were $21.1 million
associated with 47 vessels owned, on average, during the
period. Vessel operating costs for the prior year quarter
were $15.6 million and related to 34 vessels owned, on average,
during the period. Sequentially, daily operating costs, excluding
take over and other non-operating costs, decreased to $4,858 in the
second quarter of 2017 from $5,019 in the first quarter of 2017, as
a result of our cost reduction efforts.
Charterhire expense decreased to $1.7 million in
the second quarter of 2017 from $3.6 million in the prior year
period, reflecting the reduction in the number of vessels time
chartered-in from three vessels to one vessel, on a day weighted
average, respectively. The existing time chartered-in vessel
is expected to be redelivered in August 2017. An additional
time charter-in is expected to commence no later than the end of
October 2017. The agreement is for two years at
approximately $10,125 per day with an option to extend
for one year at approximately $10,885 per day.
Depreciation increased to $12.0 million in the
second quarter of 2017 from $8.7 million in the prior year period,
reflecting the increase in our weighted average vessels owned to 47
from 34.
General and administrative expense decreased to
$7.6 million from $8.6 million in the prior year period due
primarily to decreases in restricted stock amortization caused by
the run off of awards granted at a higher fair value and a
reduction in legal fees, offset in part by an increase in
administrative fees reflecting the growth of our fleet.
Financial Results for the Six Months
Ended June 30, 2017 Compared to the Six Months Ended
June 30, 2016
The Company had a GAAP net loss of $48.0
million, or $0.67 loss per diluted share for the six months ended
June 30, 2017 compared with a GAAP net loss of $83.0 million,
or $2.05 loss per diluted share for the six months ended
June 30, 2016.
For the six months ended June 30, 2017, the
Company’s adjusted net loss was $29.8 million, or $0.41 adjusted
loss per diluted share, which excludes the impact of a write down
of assets held for sale of $17.7 million and a write off of
deferred financing costs on the credit facility related to those
specific vessels of $0.5 million. For the six months
ended June 30, 2016, the Company’s adjusted net loss
was $58.1 million, or $1.43 adjusted loss per
diluted share, which excludes a loss/write off of vessels and
assets held for sale of $12.4 million, the write off of
deferred financing costs on credit facilities that will no longer
be used of $2.5 million and a charterhire contract
termination fee of $10.0 million (see Non-GAAP Financial Measures
below).
TCE revenue was $72.2 million in the first half
of 2017 and is associated with a day weighted average of 47 vessels
owned and one vessel time chartered-in compared to $27.6 million
during the prior year period, which was associated with a day
weighted average of 33 vessels owned and five vessels time
chartered-in. TCE revenue per day was $8,673 and $4,396 for first
half of 2017 and 2016, respectively. TCE revenue increased
significantly versus the prior year due to the increase in rates,
attributable to increased worldwide demand across all bulk sectors,
regions and commodities, as well as a reduction in supply as fewer
vessels are now on order, combined with the increase in revenue
days associated with the growth of our fleet.
Vessel operating costs were $42.9 million and
included approximately $1.2 million of takeover costs associated
with new deliveries, and $1.3 million of non-operating expenses and
related to 47 vessels owned, on average, during the first half of
2017. Vessel operating costs for the prior year period were
$30.9 million and related to 33 vessels owned, on average. Daily
operating costs, excluding take over and other non-operating costs,
were $4,944 in the first half of 2017.
Charterhire expense decreased to $3.6 million
for the first half of 2017 from $12.2 million in the prior year
period, reflecting the reduction in the number of vessels time
chartered-in from five vessels to one vessel, on a day weighted
average, respectively. Included in the prior year figures is
a charterhire contract termination fee of $10.0 million incurred to
terminate four time charter-in agreements. The existing time
chartered-in vessel is expected to be redelivered in August
2017. An additional time charter-in is expected to commence
no later than the end of October 2017. The agreement is for two
years at approximately $10,125 per day with an option to
extend for one year at approximately $10,885 per day.
Depreciation increased to $23.6 million in the
first half of 2017 from $16.0 million in the prior year period,
reflecting the increase in our weighted average vessels owned to 47
from 33.
General and administrative expense decreased to
$15.3 million from $16.4 million in the prior year period due
primarily to decreases in restricted stock amortization, due to the
run off of awards granted at a higher fair value, offset by an
increase in administrative fees reflecting the growth of our
fleet.
During the first half of 2017, we recorded a
write down on assets held for sale of $17.1 million related to the
sale of two Kamsarmax vessels to an unaffiliated third party and
also recorded a $0.6 million adjustment related to vessels sold in
the prior year. During the first half of 2016, the Company
recorded a write down of vessels and assets held for sale of
$12.4 million of which $11.6 million related to the
cancellation of a shipbuilding contract for a Kamsarmax bulk
carrier and $0.8 million in additional expenses
related to vessels held for sale at December 31, 2015.
During the first halves of 2017 and 2016, we
wrote off $0.5 million and $2.5 million, respectively, of deferred
financing costs accumulated on credit facilities for which the
related vessels were sold or the commitments were otherwise
reduced.
Scorpio Bulkers Inc. and Subsidiaries |
Consolidated Statements of Operations |
(Amounts in thousands, except per share
data) |
|
|
|
|
|
Unaudited |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
Vessel
revenue |
|
$ |
37,742 |
|
|
$ |
17,374 |
|
|
$ |
72,470 |
|
|
$ |
27,618 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Voyage
expenses |
|
162 |
|
|
2 |
|
|
279 |
|
|
67 |
|
Vessel
operating costs |
|
21,066 |
|
|
15,628 |
|
|
42,867 |
|
|
30,943 |
|
Charterhire expense |
|
1,675 |
|
|
3,631 |
|
|
3,646 |
|
|
12,175 |
|
Charterhire contract termination charge |
|
— |
|
|
— |
|
|
— |
|
|
10,000 |
|
Vessel
depreciation |
|
12,017 |
|
|
8,718 |
|
|
23,599 |
|
|
16,011 |
|
General
and administrative expenses |
|
7,556 |
|
|
8,599 |
|
|
15,284 |
|
|
16,385 |
|
Loss /
write down on assets held for sale |
|
— |
|
|
— |
|
|
17,702 |
|
|
12,433 |
|
Total operating
expenses |
|
42,476 |
|
|
36,578 |
|
|
103,377 |
|
|
98,014 |
|
Operating
loss |
|
(4,734 |
) |
|
(19,204 |
) |
|
(30,907 |
) |
|
(70,396 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
353 |
|
|
187 |
|
|
615 |
|
|
280 |
|
Foreign
exchange loss |
|
(92 |
) |
|
(20 |
) |
|
(186 |
) |
|
(138 |
) |
Financial
expense, net |
|
(8,945 |
) |
|
(5,711 |
) |
|
(17,504 |
) |
|
(12,754 |
) |
Total other
expense |
|
(8,684 |
) |
|
(5,544 |
) |
|
(17,075 |
) |
|
(12,612 |
) |
Net
loss |
|
$ |
(13,418 |
) |
|
$ |
(24,748 |
) |
|
$ |
(47,982 |
) |
|
$ |
(83,008 |
) |
|
|
|
|
|
|
|
|
|
Loss per common share -
basic and diluted(1) |
|
$ |
(0.19 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.67 |
) |
|
$ |
(2.05 |
) |
Weighted-average shares
outstanding - basic and diluted(1) |
|
71,804 |
|
|
51,305 |
|
|
71,770 |
|
|
40,550 |
|
(1)
Diluted weighted average shares outstanding excludes the impact of
restricted shares for the three and six months ended June 30, 2017
and 2016, as the impact would be anti-dilutive since the Company is
in a net loss position. |
Scorpio Bulkers Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(Dollars in thousands) |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
149,322 |
|
|
$ |
101,734 |
|
Accounts
receivable |
|
8,088 |
|
|
7,050 |
|
Prepaid
expenses and other current assets |
|
5,805 |
|
|
6,696 |
|
Total current
assets |
|
163,215 |
|
|
115,480 |
|
Non-current assets |
|
|
|
|
Vessels,
net |
|
1,352,520 |
|
|
1,234,081 |
|
Vessels
under construction |
|
— |
|
|
180,000 |
|
Deferred
financing costs, net |
|
3,598 |
|
|
3,307 |
|
Other
assets |
|
12,817 |
|
|
14,289 |
|
Total
non-current assets |
|
1,368,935 |
|
|
1,431,677 |
|
Total
assets |
|
$ |
1,532,150 |
|
|
$ |
1,547,157 |
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Bank
loans, net |
|
$ |
23,775 |
|
|
$ |
13,480 |
|
Accounts
payable and accrued expenses |
|
9,708 |
|
|
11,070 |
|
Total current
liabilities |
|
33,483 |
|
|
24,550 |
|
Non-current
liabilities |
|
|
|
|
Bank
loans, net |
|
510,019 |
|
|
493,793 |
|
Senior
Notes, net |
|
72,460 |
|
|
72,199 |
|
Total non-current
liabilities |
|
582,479 |
|
|
565,992 |
|
Total liabilities |
|
615,962 |
|
|
590,542 |
|
Shareholders’
equity |
|
|
|
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no
shares issued or outstanding |
|
— |
|
|
— |
|
Common stock, $0.01 par value per share; authorized 112,500,000
shares; issued and outstanding 75,461,622 and 75,298,676 shares as
of June 30, 2017 and December 31, 2016, respectively |
|
753 |
|
|
753 |
|
Paid-in
capital |
|
1,721,913 |
|
|
1,714,358 |
|
Accumulated deficit |
|
(806,478 |
) |
|
(758,496 |
) |
Total shareholders’
equity |
|
916,188 |
|
|
956,615 |
|
Total
liabilities and shareholders’ equity |
|
$ |
1,532,150 |
|
|
$ |
1,547,157 |
|
Scorpio Bulkers Inc. and Subsidiaries |
Statements of Cash Flows (unaudited) |
(Amounts in thousands) |
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
2017 |
|
2016 |
Operating
activities |
|
|
|
|
Net loss |
|
$ |
(47,982 |
) |
|
$ |
(83,008 |
) |
Adjustment to
reconcile net loss to net cash used by |
|
|
|
|
operating activities: |
|
|
|
|
Restricted stock amortization |
|
7,473 |
|
|
9,168 |
|
Vessel
depreciation |
|
23,599 |
|
|
16,011 |
|
Amortization of deferred financing costs |
|
2,767 |
|
|
1,883 |
|
Write off
of deferred financing costs |
|
470 |
|
|
3,781 |
|
Loss /
write down on assets held for sale |
|
16,471 |
|
|
10,555 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
Decrease
in accounts receivable |
|
(1,038 |
) |
|
(58 |
) |
(Decrease) increase in prepaid expenses and other assets |
|
(272 |
) |
|
2,973 |
|
Decrease
in accounts payable and accrued expenses |
|
(702 |
) |
|
(6,904 |
) |
Net cash
provided by (used in) operating activities |
|
786 |
|
|
(45,599 |
) |
Investing
activities |
|
|
|
|
Proceeds
from sale of assets held for sale |
|
44,340 |
|
|
271,376 |
|
Payments
on assets held for sale |
|
— |
|
|
(98,445 |
) |
Payments
for vessels and vessels under construction |
|
(23,428 |
) |
|
(218,542 |
) |
Net cash
provided by (used in) investing activities |
|
20,912 |
|
|
(45,611 |
) |
Financing
activities |
|
|
|
|
Proceeds
from issuance of common stock |
|
— |
|
|
128,139 |
|
Proceeds
from issuance of long-term debt |
|
51,600 |
|
|
157,393 |
|
Repayments of long-term debt |
|
(25,710 |
) |
|
(152,064 |
) |
Debt
issue costs paid |
|
— |
|
|
(818 |
) |
Net cash
provided by financing activities |
|
25,890 |
|
|
132,650 |
|
Increase in cash and
cash equivalents |
|
47,588 |
|
|
41,440 |
|
Cash at cash
equivalents, beginning of period |
|
101,734 |
|
|
200,300 |
|
Cash and cash
equivalents, end of period |
|
$ |
149,322 |
|
|
$ |
241,740 |
|
Scorpio Bulkers Inc. and Subsidiaries |
Other Operating Data (unaudited) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Time charter equivalent
revenue ($000’s) (1): |
|
|
|
|
|
|
|
|
Vessel
revenue |
|
$ |
37,743 |
|
|
$ |
17,374 |
|
|
$ |
72,470 |
|
|
$ |
27,618 |
|
Voyage
expenses |
|
(163 |
) |
|
(2 |
) |
|
(279 |
) |
|
(67 |
) |
Time
charter equivalent revenue |
|
$ |
37,580 |
|
|
$ |
17,372 |
|
|
$ |
72,191 |
|
|
$ |
27,551 |
|
Time charter equivalent
revenue attributable to: |
|
|
|
|
|
|
|
|
Kamsarmax |
|
$ |
16,312 |
|
|
$ |
7,657 |
|
|
$ |
31,212 |
|
|
$ |
12,018 |
|
Ultramax |
|
21,268 |
|
|
9,715 |
|
|
40,979 |
|
|
15,533 |
|
|
|
$ |
37,580 |
|
|
$ |
17,372 |
|
|
$ |
72,191 |
|
|
$ |
27,551 |
|
Revenue days: |
|
|
|
|
|
|
|
|
Kamsarmax |
|
1,759 |
|
|
1,455 |
|
|
3,385 |
|
|
2,764 |
|
Ultramax |
|
2,544 |
|
|
1,821 |
|
|
4,939 |
|
|
3,503 |
|
Combined |
|
4,303 |
|
|
3,276 |
|
|
8,324 |
|
|
6,267 |
|
TCE per revenue day
(1): |
|
|
|
|
|
|
|
|
Kamsarmax |
|
$ |
9,273 |
|
|
$ |
5,263 |
|
|
$ |
9,221 |
|
|
$ |
4,348 |
|
Ultramax |
|
$ |
8,360 |
|
|
$ |
5,335 |
|
|
$ |
8,297 |
|
|
$ |
4,434 |
|
Combined |
|
$ |
8,733 |
|
|
$ |
5,303 |
|
|
$ |
8,673 |
|
|
$ |
4,396 |
|
(1) We
define Time Charter Equivalent (TCE) revenue as voyage revenues
less voyage expenses. Such TCE revenue, divided by the number
of our available days during the period, or revenue days, is TCE
per revenue day, which is consistent with industry standards.
TCE per revenue day is a common shipping industry performance
measure used primarily to compare daily earnings generated by
vessels on time charters with daily earnings generated by vessels
on voyage charters, because charter hire rates for vessels on
voyage charters are generally not expressed in per-day amounts
while charter hire rates for vessels on time charters generally are
expressed in such amounts. |
|
We
report TCE revenue, a non-GAAP financial measure, because
(i) we believe it provides additional meaningful information
in conjunction with voyage revenues and voyage expenses, the most
directly comparable U.S.-GAAP measure, (ii) it assists our
management in making decisions regarding the deployment and use of
our vessels and in evaluating their financial performance,
(iii) it is a standard shipping industry performance measure
used primarily to compare period-to-period changes in a shipping
company’s performance irrespective of changes in the mix of charter
types (i.e., spot charters, time charters and bareboat charters)
under which the vessels may be employed between the periods, and
(iv) we believe that it presents useful information to
investors. |
Fleet List as of July 21, 2017 |
|
|
|
|
|
|
|
Vessel Name |
|
Year Built |
|
DWT |
|
Vessel Type |
SBI Samba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Rumba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Capoeira |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Electra |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Carioca |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Conga |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Flamenco |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Bolero |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Sousta |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Rock |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Lambada |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Reggae |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Zumba |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Macarena |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Parapara |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Mazurka |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Swing |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Jive |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
Total Kamsarmax |
|
|
|
1,480,000 |
|
|
|
|
|
|
|
|
|
|
SBI Antares |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Athena |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Bravo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Leo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Echo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Lyra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Tango |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Maia |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Hydra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Subaru |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Pegasus |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Ursa |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Thalia |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Cronos |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Orion |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Achilles |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Hercules |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Perseus |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Hermes |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Zeus |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hera |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hyperion |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Tethys |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Phoebe |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Poseidon |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Apollo |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Samson |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Phoenix |
|
2017 |
|
64,000 |
|
|
Ultramax |
Total Ultramax |
|
|
|
1,731,800 |
|
|
|
Total Owned Vessels DWT |
|
|
|
3,211,800 |
|
|
|
Time chartered-in vessels
The Company currently has time
chartered-in one Kamsarmax dry bulk vessel and has agreed
to time charter-in one Ultramax dry bulk vessel. The terms of these
contracts are summarized as follows:
Vessel Type |
|
Year Built |
|
DWT |
|
Where Built |
|
Daily Base Rate |
|
Earliest Expiry |
Kamsarmax |
|
2012 |
|
82,000 |
|
|
South
Korea |
|
$ |
15,500 |
|
|
2-Aug-17 |
|
(1 |
) |
Ultramax |
|
2017 |
|
62,100 |
|
|
Japan |
|
$ |
10,125 |
|
|
30-Sep-19 |
|
(2 |
) |
Total TC DWT |
|
|
|
144,100 |
|
|
|
|
|
|
|
|
|
(1) This vessel has
been time chartered-in for 39 to 44 months at the Company’s option
at $15,500 per day. The Company has the option to extend this
time charter for one year at $16,300 per day. The vessel was
delivered on April 23, 2014. |
|
(2) This vessel has
been time chartered-in for 22 to 24 months at the Company’s option
at $10,125 per day. The Company has the option to extend this time
charter for one year at $10,885 per day. The vessel is scheduled to
be delivered in October 2017. |
Conference Call on Results:
A conference call to discuss the Company’s results will be held
today, Monday, July 24, 2017, at 9:00 AM Eastern Daylight Time /
3:00 PM Central European Time. Those wishing to listen to the
call should dial 1 (866) 219-5268 (U.S.) or 1 (703) 736-7424
(International) at least 10 minutes prior to the start of the call
to ensure connection. The conference participant passcode is
52360565.
There will also be a simultaneous live webcast
over the internet, through the Scorpio Bulkers Inc. website
www.scorpiobulkers.com. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.Webcast
URL: http://edge.media-server.com/m/p/7uhppvwg
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine
transportation of dry bulk commodities. Scorpio Bulkers Inc.
owns 46 vessels, consisting of 18 Kamsarmax vessels and 28 Ultramax
vessels. The Company also time charters-in one dry bulk Kamsarmax
vessel and has agreed to time charter-in one Ultramax vessel. The
owned fleet has a total carrying capacity of approximately 3.2
million deadweight tonnes. Additional information about the Company
is available on the Company’s website www.scorpiobulkers.com, which
is not a part of this press release.
Non-GAAP Financial Measures
To supplement our financial information
presented in accordance with accounting principles generally
accepted in the U.S., (“GAAP”), management uses certain “non-GAAP
financial measures” as such term is defined in Regulation G
promulgated by the SEC. Generally, a non-GAAP financial measure is
a numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with GAAP. Management
believes the presentation of these measures provides investors with
greater transparency and supplemental data relating to our
financial condition and results of operations, and therefore a more
complete understanding of factors affecting our business than GAAP
measures alone. In addition, management believes the
presentation of these matters is useful to investors for
period-to-period comparison of results as the items may reflect
certain unique and/or non-operating items such as asset sales,
write-offs, contract termination costs or items outside of
management’s control.
Adjusted net loss and related per share amounts
are non-GAAP performance measures that we believe provide investors
with a means of evaluating and understanding how the Company’s
management evaluates the Company’s operating performance.
These non-GAAP financial measures should not be considered in
isolation from, as substitutes for, nor superior to financial
measures prepared in accordance with GAAP.
Adjusted net loss (unadjusted)
In thousands, except per share data
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
Amount |
|
Per share |
|
Amount |
|
Per share |
Net loss |
$ |
(47,982 |
) |
|
$ |
(0.67 |
) |
|
$ |
(83,008 |
) |
|
$ |
(2.05 |
) |
Adjustments: |
|
|
|
|
|
|
|
Loss /
write down on assets held for sale |
17,702 |
|
|
0.25 |
|
|
12,433 |
|
|
0.31 |
|
Write
down of deferred financing cost |
470 |
|
|
0.01 |
|
|
2,456 |
|
|
0.06 |
|
Charterhire contract termination charge |
— |
|
|
— |
|
|
10,000 |
|
|
0.25 |
|
Total adjustments |
$ |
18,172 |
|
|
$ |
0.26 |
|
|
$ |
24,889 |
|
|
$ |
0.62 |
|
Adjusted net
loss |
$ |
(29,810 |
) |
|
$ |
(0.41 |
) |
|
$ |
(58,119 |
) |
|
$ |
(1.43 |
) |
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words “believe,” “anticipate,” “intend,” “estimate,” “forecast,”
“project,” “plan,” “potential,” “may,” “should,” “expect,”
“pending” and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management’s examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the failure of counterparties to fully perform
their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for dry bulk
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, changes in
governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires and other
factors. Please see our filings with the Securities and
Exchange Commission for a more complete discussion of these and
other risks and uncertainties.
Contact:
Scorpio Bulkers Inc.
+377-9798-5715 (Monaco)
+1-646-432-1675 (New York)
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