Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers”, or the
“Company”), today reported its results for the three months and
year ended December 31, 2017.
The Company also announced today that its Board
of Directors has declared a quarterly cash dividend of $0.02 per
share on the Company’s common stock.
Results for the Three Months and Year
Ended December 31, 2017 and 2016
For the three months ended December 31, 2017,
the Company’s GAAP net loss was $1.1 million, or $0.01 loss per
diluted share. For the same period in 2016, the Company’s
GAAP net loss was $20.6 million, or $0.29 loss per diluted
share. Total vessel revenues for the three months ended
December 31, 2017 were of $51.1 million, compared to $26.8 million
for the three months ended December 31, 2016. Earnings before
interest, taxes, depreciation and amortization (“EBITDA”) for the
fourth quarter of 2017 and 2016 were $22.9 million and $1.0
million, respectively (see Non-GAAP Financial Measures below).
For the year ended December 31, 2017, the
Company’s GAAP net loss was $59.7 million, or $0.83 loss per
diluted share compared to a GAAP net loss of $124.8 million,
or $2.22 loss per diluted share for the prior year.
EBITDA for the years ended December 31, 2017 and 2016 were $35.3
million and a loss of $45.7 million, respectively (see Non-GAAP
Financial Measures below).
For the year ended December 31, 2017, the
Company’s adjusted net loss was $41.6 million, or $0.57 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 year ended December
31, 2016, the Company’s adjusted net loss was $99.9 million,
or $1.78 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. Adjusted EBITDA for the years ended December 31, 2017 and
2016 were $53.5 million and a loss of $20.8 million, respectively
(see Non-GAAP Financial Measures below).
TCE Revenue
TCE Revenue Earned during the Fourth Quarter of
2017
- Our Kamsarmax fleet earned $12,605 per day
- Our Ultramax fleet earned $10,886 per day
Voyages Fixed thus far for the First Quarter of 2018
- Kamsarmax fleet: approximately $13,300 per day for 74% of the
days
- Ultramax fleet: approximately $9,800 per day for 63% of the
days
Cash and Cash Equivalents
As of February 2, 2018, the Company had
approximately $69.1 million in cash and cash equivalents.
Recent Significant Events
Vessel Acquisitions
The Company acquired nine Chinese built Ultramax dry bulk
vessels in two separate transactions for a total consideration of
$207.0 million, of which $186.7 million was paid in cash and $20.3
million was in the form of the Company’s common stock. Two of
the vessels were built in 2014, four were built in 2015, one was
built in 2016, and two were built in 2017. All nine vessels
were delivered to the Company as of December 31, 2017.
The Company also entered into an agreement to purchase one
Kamsarmax dry bulk vessel for $25.5 million, of which $18.8 million
remains unpaid at December 31, 2017. The Kamsarmax vessel is a
resale unit which is expected to be delivered from Jiangsu New
Yangzijiang Shipbuilding Co Ltd in China in the second
quarter of 2018.
Liquidity and Debt
Share Repurchase Program
The Company repurchased approximately 1.5 million shares of its
common stock under the Board of Directors authorized stock
repurchase program at a cost of approximately $11.0 million, or at
an average cost of $7.51 per share, which was funded from available
cash resources. As of February 2, 2018, approximately $39.0
million of the $50.0 million authorized remains available for the
repurchase of the Company’s common stock in open market or
privately negotiated transactions. The specific timing and
amounts of any repurchases will be in the sole discretion of
management and may vary based on market conditions and other
factors and the Company is not obligated under the terms of the
program to repurchase any of its common stock. The
authorization has no expiration date.
Senior Notes Repurchase Program
In December 2016, the Company’s Board of Directors authorized
the repurchase of up to $20.0 million of the Company's outstanding
7.5% Senior Notes due in 2019, or Senior Notes, in open market or
privately negotiated transactions. The specific timing and amounts
of the repurchases, which will be funded by available cash, will be
in the sole discretion of management and vary based on market
conditions and other factors. This authorization has no expiration
date. As of February 2, 2018, the entire $20.0 million remains
available.
Dividend
In the fourth quarter of 2017, the Company’s Board of Directors
declared and the Company paid a quarterly cash dividend of $0.02
per share totaling approximately $1.5 million.
Today, the Company’s Board of Directors declared a quarterly
cash dividend of $0.02 per share, payable on or about March 15,
2018, to all shareholders of record as of February 15, 2018. As of
February 2, 2018, 77,141,140 shares were outstanding.
$38.7 Million Credit Facility
On December 13, 2017, the Company entered into a senior secured
credit facility for up to $38.7 million (the “$38.7 Million Credit
Facility”), which was used to finance a portion of the purchase
price of three Ultramax vessels acquired in the fourth quarter of
2017. The facility has a maturity date of December 13, 2022 and
bears interest at LIBOR plus a margin of 2.85% per annum. This
facility is secured by, among other things, a first preferred
mortgage on the three Ultramax vessels and guaranteed by each
vessel owning subsidiary. The entire $38.7 million available under
the credit facility was drawn down, all of which remains currently
outstanding.
$85.5 Million Credit Facility
On December 5, 2017, the Company entered into a senior secured
credit facility for up to $85.5 million (the “$85.5 Million Credit
Facility”), which was used to finance a portion of the purchase
price of six Ultramax vessels acquired in the fourth quarter of
2017. The facility has a maturity date of February 15, 2023 and
bears interest at LIBOR plus a margin of 2.85% per annum. This
facility is secured by, among other things, a first preferred
mortgage on the six Ultramax vessels and guaranteed by each vessel
owning subsidiary. The entire $85.5 million available under the
credit facility was drawn down, all of which remains currently
outstanding.
$19.6 Million Lease Financing
On October 20, 2017, the Company entered into a financing
transaction in respect of one of its Kamsarmax vessels with
unaffiliated third parties involving the sale and leaseback of the
SBI Rumba (the “$19.6 Million Lease Financing”), a 2015 Japanese
built Kamsarmax vessel, for consideration of approximately $19.6
million. As part of the transaction, the Company will make
monthly payments of $164,250 under a nine and a half year bareboat
charter agreement with the buyers, that the Company could extend
for a further six months. The cost of the financing is
equivalent to an implied fixed interest rate of 4.23% for 10
years. The agreement also provides the Company with options to
repurchase the vessel beginning on the fifth anniversary of the
sale through the end of the agreement.
$409 Million Credit Facility
During the fourth quarter of 2017, the Company drew down the
$79.0 million available to it under the revolving line of credit
available under the $409 Million Credit Facility. As of
February 2, 2018, the Company is fully drawn on this facility.
Debt Overview
The Company’s outstanding debt balance, gross of
unamortized deferred financing costs as of December 31, 2017
and February 2, 2018, are as follows (dollars in
thousands).
|
|
As ofDecember 31, 2017 |
|
As ofFebruary 2, 2018 |
Credit Facility |
|
AmountOutstanding |
|
AmountOutstanding |
Senior Notes |
|
$ |
73,625 |
|
|
$ |
73,625 |
|
$409 Million Credit
Facility |
|
174,443 |
|
|
173,123 |
|
$330 Million Credit
Facility |
|
247,876 |
|
|
247,876 |
|
$42 Million Credit
Facility |
|
22,354 |
|
|
22,354 |
|
$67.5 Million Credit
Facility |
|
40,461 |
|
|
39,679 |
|
$12.5 Million Credit
Facility |
|
10,183 |
|
|
10,183 |
|
$27.3 Million Credit
Facility |
|
18,213 |
|
|
18,017 |
|
$85.5 Million Credit
Facility |
|
85,500 |
|
|
85,500 |
|
$38.7 Million Credit
Facility |
|
38,700 |
|
|
38,700 |
|
$19.6 Million Lease
Financing |
|
19,268 |
|
|
19,174 |
|
Total |
|
$ |
730,623 |
|
|
$ |
728,231 |
|
|
The Company’s projected quarterly debt
repayments on our bank loans and senior notes and bareboat charter
payments on our finance lease through 2019 are as follows (dollars
in thousands):
|
|
Principal onBank Loansand Senior
Notes |
|
FinanceLease |
|
Total |
Q1 2018
(1) |
|
$ |
10,843 |
|
|
$ |
329 |
|
|
$ |
11,172 |
|
Q2 2018 |
|
|
12,161 |
|
|
|
493 |
|
|
|
12,654 |
|
Q3 2018 |
|
|
11,729 |
|
|
|
493 |
|
|
|
12,222 |
|
Q4 2018 |
|
|
11,069 |
|
|
|
493 |
|
|
|
11,562 |
|
Q1 2019 |
|
|
10,791 |
|
|
|
493 |
|
|
|
11,284 |
|
Q2 2019 |
|
|
10,592 |
|
|
|
493 |
|
|
|
11,085 |
|
Q3 2019
(2) |
|
|
84,650 |
|
|
|
493 |
|
|
|
85,143 |
|
Q4 2019 |
|
|
12,554 |
|
|
|
493 |
|
|
|
13,047 |
|
Total |
|
$ |
164,389 |
|
|
$ |
3,780 |
|
|
$ |
168,169 |
|
(1) Relates to payments expected to be made from February 3,
2018 to March 31, 2018.(2) Includes $73.6 million repayment of
Senior Notes due at maturity.
Financial Results for the Three Months
Ended December 31, 2017 Compared to the Three Months Ended
December 31, 2016
For the fourth quarter of 2017, the Company’s
GAAP net loss was $1.1 million, or $0.01 loss per diluted
share. For the same period in 2016, the Company’s GAAP net
loss was $20.6 million, or $0.29 loss per diluted share.
Earnings before interest, taxes, depreciation and amortization for
the fourth quarters of 2017 and 2016 were $22.9 million and $1.0
million, respectively (see Non-GAAP Financial Measures).
Total vessel revenues for the fourth quarter of
2017 were of $51.1 million, an increase of $24.3 million from $26.8
million in the fourth quarter of 2016. Our TCE revenue (see
Non-GAAP Financial Measures) for the fourth quarter of 2017 was
$51.0 million, an increase of $24.2 million from the fourth quarter
of 2016. During the fourth quarter of 2017, a large percentage of
our fleet was positioned within the Atlantic basin allowing us to
capitalize on the strong coal and petroleum coke volumes to the
North Atlantic, while reducing the impact of the announced
restrictions on Chinese coal imports.
Total operating expenses for the fourth quarter
of 2017 were $43.2 million compared to $40.9 million in the fourth
quarter of 2016. In the fourth quarter of 2017, we took
delivery of nine Ultramax vessels, which contributed approximately
$2.0 million in operating expenses, consisting primarily of
takeover costs and other vessel operating expenses.
Ultramax Operations
|
Three Months Ended December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
30,266 |
|
|
$ |
16,020 |
|
|
$ |
14,246 |
|
|
89 |
|
Voyage
expenses |
47 |
|
|
(5 |
) |
|
52 |
|
|
1,040 |
|
TCE
Revenue |
$ |
30,219 |
|
|
$ |
16,025 |
|
|
$ |
14,194 |
|
|
89 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
14,082 |
|
|
12,030 |
|
|
2,052 |
|
|
17 |
|
Charterhire expense |
936 |
|
|
— |
|
|
936 |
|
|
— |
|
Vessel
depreciation |
7,819 |
|
|
6,765 |
|
|
1,054 |
|
|
16 |
|
General
and administrative expense |
881 |
|
|
795 |
|
|
86 |
|
|
11 |
|
Total operating expenses |
$ |
23,718 |
|
|
$ |
19,590 |
|
|
$ |
4,128 |
|
|
21 |
|
Operating
income (loss) |
$ |
6,501 |
|
|
$ |
(3,565 |
) |
|
$ |
10,066 |
|
|
282 |
|
Vessel revenue for our Ultramax Operations
increased to $30.3 million in the three months ended
December 31, 2017 from $16.0 million in the three months ended
December 31, 2016.
TCE revenue (see Non-GAAP Financial Measures)
for our Ultramax Operations was $30.2 million for the three months
ended December 31, 2017 and was associated with a day-weighted
average of 29 vessels owned and one time chartered-in vessel,
compared to $16.0 million for the three months ended December 31,
2016, which was associated with a day-weighted average of 26
vessels owned. TCE revenue per day was $10,886 and $7,238 for the
three months ended December 31, 2017 and 2016, respectively.
Our Ultramax fleet benefitted due to the fleet positional strategy
in place for the fourth quarter of 2017, which was weighted towards
the Atlantic. This enabled us to take advantage of the strong coal
and petroleum coke export volumes, while avoiding the downside risk
in the Pacific from coal import regulations instituted by Chinese
Authorities.
|
Three Months Ended December 31, |
|
|
|
|
Ultramax
Operations: |
2017 |
|
2016 |
|
Change |
|
% Change |
TCE Revenue |
$ |
30,219 |
|
|
$ |
16,025 |
|
|
$ |
14,194 |
|
|
89 |
|
TCE Revenue / Day |
$ |
10,886 |
|
|
$ |
7,238 |
|
|
$ |
3,648 |
|
|
50 |
|
Revenue Days |
2,776 |
|
|
2,214 |
|
|
562 |
|
|
25 |
|
Our Ultramax Operations vessel operating costs
were $14.1 million for the three months ended December 31, 2017,
including approximately $1.2 million of takeover costs (primarily
attributable to the nine vessels acquired in the period) and
contingency expenses and related to 29 vessels owned, on average
during the period. Vessel operating costs for the prior year
period were $12.0 million and related to 26 vessels owned, on
average during the period. Daily operating costs excluding other
non-operating expenses for the three months ended December 31,
2017 were $4,749.
Charterhire expense for our Ultramax Operations
was approximately $0.9 million for the three months ended
December 31, 2017, and relates to the vessel we have time
chartered-in at $10,125 per day since the end of the third quarter
of 2017.
Ultramax Operations depreciation increased to
$7.8 million in the three months ended December 31, 2017 from
$6.8 million in the prior year period reflecting the increase in
our weighted average vessels owned to 29 from 26.
General and administrative expense for our
Ultramax Operations was $0.9 million for the three months ended
December 31, 2017 and $0.8 million for the three months ended
December 31, 2016. The increase was due to an increase
in administrative service fees, reflecting the growth of our
fleet.
Kamsarmax Operations
|
Three Months Ended December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
20,861 |
|
|
$ |
10,826 |
|
|
$ |
10,035 |
|
|
93 |
|
Voyage
expenses |
50 |
|
|
36 |
|
|
14 |
|
|
39 |
|
TCE
Revenue |
$ |
20,811 |
|
|
$ |
10,790 |
|
|
$ |
10,021 |
|
|
93 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
8,719 |
|
|
7,006 |
|
|
1,713 |
|
|
24 |
|
Charterhire expense |
11 |
|
|
2,569 |
|
|
(2,558 |
) |
|
(100 |
) |
Vessel
depreciation |
5,021 |
|
|
3,821 |
|
|
1,200 |
|
|
31 |
|
General
and administrative expense |
324 |
|
|
451 |
|
|
(127 |
) |
|
(28 |
) |
Total operating expenses |
$ |
14,075 |
|
|
$ |
13,847 |
|
|
$ |
228 |
|
|
2 |
|
Operating
income (loss) |
$ |
6,736 |
|
|
$ |
(3,057 |
) |
|
$ |
9,793 |
|
|
320 |
|
Vessel revenue for our Kamsarmax Operations
increased to $20.9 million in the three months ended
December 31, 2017 from $10.8 million in the three months ended
December 31, 2016.
TCE revenue (see Non-GAAP Financial Measures)
for our Kamsarmax Operations was $20.8 million for the three months
ended December 31, 2017 and was associated with a day-weighted
average of 18 vessels owned, compared to $10.8 million for the
three months ended December 31, 2016, which was associated with a
day-weighted average of 15 vessels owned and two vessels time
chartered-in. TCE revenue per day was $12,605 and $7,401 for the
three months ended December 31, 2017 and 2016,
respectively. Our Kamsarmax vessels were able to benefit from
their positioning in the Atlantic basin at the beginning of the
fourth quarter of 2017 allowing us to take advantage of the strong
coal volumes to the North Atlantic.
|
Three Months Ended December 31, |
|
|
|
|
Kamsarmax
Operations: |
2017 |
|
2016 |
|
Change |
|
% Change |
TCE Revenue |
$ |
20,811 |
|
|
$ |
10,790 |
|
|
$ |
10,021 |
|
|
93 |
|
TCE Revenue / Day |
$ |
12,605 |
|
|
$ |
7,401 |
|
|
$ |
5,204 |
|
|
70 |
|
Revenue Days |
1,651 |
|
|
1,458 |
|
|
193 |
|
|
13 |
|
Kamsarmax Operations vessel operating costs were
$8.7 million for the three months ended December 31, 2017,
including approximately $0.5 million of takeover costs and
contingency expenses, related to 18 vessels owned, on average
during the period. Vessel operating costs for the prior year
period were $7.0 million and related to 15 vessels owned, on
average during the period. Daily operating costs excluding takeover
and other non-operating expenses for the three months ended
December 31, 2017 were $4,943.
In the three months ended December 31, 2017
no Kamsarmax vessels were time chartered-in. During the prior
year period, two Kamsarmax vessels were time chartered-in resulting
in charterhire expense of $2.6 million.
Kamsarmax Operations depreciation increased to
$5.0 million in the three months ended December 31, 2017 from
$3.8 million in the prior year period reflecting the increase in
our weighted average vessels owned to 18 from 15.
General and administrative expense for our
Kamsarmax Operations was $0.3 million and $0.5 million for the
three months ended December 31, 2017 and 2016. The
expense consists primarily of administrative services fees.
Corporate
Certain general and administrative expenses we
incur and all of our financial expenses are not attributable to a
specific segment. Accordingly, these costs are not allocated
to any of our segments. Corporate related expenses were $14.3
million in both the fourth quarters of 2017 and 2016. A
decrease in restricted stock amortization resulting from run-off of
prior year grants was offset by an increase in financial expenses
due to an increase in the LIBOR rate, higher levels of debt and the
cessation of the capitalization of interest.
Financial Results for the Year Ended
December 31, 2017 Compared to the Year Ended December 31,
2016
For 2017, the Company’s GAAP net loss was $59.7
million, or $0.83 loss per diluted share compared to a GAAP net
loss of $124.8 million, or $2.22 loss per diluted
share for the prior year. EBITDA for 2017 and 2016 were $35.3
million and a loss of $45.7 million, respectively (see Non-GAAP
Financial Measures below).
For 2017, the Company’s adjusted net loss was $41.6 million, or
$0.57 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 2016, the Company’s
adjusted net loss was $99.9 million,
or $1.78 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.
Total vessel revenues for 2017 were $162.2
million, an increase of $83.8 million from $78.4 million in 2016.
Our TCE revenue (see Non-GAAP Financial Measures) for 2017 was
$161.8 million, an increase of $83.3 million from 2016. The
increase in TCE revenue is attributable to rate increases
throughout the year, a sustained increased in demand across all
bulk sectors, regions and commodities, as well as a reduction in
tonnage supply. We also experienced an increase in revenue
days associated with the growth of our fleet.
Total operating expenses for 2017 were $187.8
million compared to $179.1 million in 2016, which included $17.7
million and $12.4 million, respectively, related to asset disposals
(as described above). The year over year increase is primarily due
to an $18.6 million increase in vessel operating costs resulting
from the increase in the size of our fleet.
Ultramax Operations
|
For the Year Ended December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
94,380 |
|
|
$ |
46,718 |
|
|
$ |
47,662 |
|
|
102 |
|
Voyage
expenses |
129 |
|
|
36 |
|
|
93 |
|
|
258 |
|
TCE
Revenue |
$ |
94,251 |
|
|
$ |
46,682 |
|
|
$ |
47,569 |
|
|
102 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
51,445 |
|
|
41,749 |
|
|
9,696 |
|
|
23 |
|
Charterhire expense |
975 |
|
|
5,033 |
|
|
(4,058 |
) |
|
(81 |
) |
Charterhire termination |
— |
|
|
7,500 |
|
|
(7,500 |
) |
|
(100 |
) |
Vessel
depreciation |
29,797 |
|
|
22,040 |
|
|
7,757 |
|
|
35 |
|
General
and administrative expense |
3,389 |
|
|
2,725 |
|
|
664 |
|
|
24 |
|
Loss /
write down on assets held for sale |
— |
|
|
(130 |
) |
|
130 |
|
|
(100 |
) |
Total operating expenses |
$ |
85,606 |
|
|
$ |
78,917 |
|
|
$ |
6,689 |
|
|
8 |
|
Operating
income (loss) |
$ |
8,645 |
|
|
$ |
(32,235 |
) |
|
$ |
40,880 |
|
|
127 |
|
Vessel revenue for our Ultramax Operations
increased to $94.4 million in 2017 from $46.7 million in 2016 due
to significant increases in both rates and revenue days, the latter
of which is associated with the growth of our fleet.
TCE revenue (see Non-GAAP Financial Measures)
for our Ultramax Operations was $94.3 million for 2017 and was
associated with a day-weighted average of 28 vessels owned,
compared to $46.7 million for the prior year, which was associated
with a day-weighted average of 22 vessels owned and one vessel time
chartered-in. TCE revenue per day was $9,159 and $5,896 for 2017
and 2016, respectively. Increased worldwide demand across all bulk
sectors, regions and commodities, as well as a reduction in supply
drove the increase in rates for both of our vessel types.
|
For the Year Ended December 31, |
|
|
|
|
Ultramax
Operations: |
2017 |
|
2016 |
|
Change |
|
% Change |
TCE Revenue |
$ |
94,251 |
|
|
$ |
46,682 |
|
|
$ |
47,569 |
|
|
102 |
|
TCE Revenue / Day |
$ |
9,159 |
|
|
$ |
5,896 |
|
|
$ |
3,263 |
|
|
55 |
|
Revenue Days |
10,291 |
|
|
7,917 |
|
|
2,374 |
|
|
30 |
|
Our Ultramax Operations vessel operating costs
were $51.4 million for 2017, including approximately $1.2 million
of takeover costs associated with new deliveries and $0.6 million
of other non-operating expenses and related to 28 vessels owned, on
average during the period. Vessel operating costs for the
prior year were $41.7 million and related to 22 vessels owned, on
average during the period. Daily operating costs excluding takeover
and other non-operating expenses for 2017 were $4,842.
Charterhire expense for our Ultramax Operations
decreased to $1.0 million in 2017 from $5.0 million in the prior
year. We did not time charter-in any Ultramax vessels until
the end of the third quarter of 2017, when we chartered-in one
Ultramax vessel at $10,125 per day. During 2016, we recorded a $7.5
million charge to terminate three time charter-in
contracts.
Ultramax Operations depreciation increased to
$29.8 million in 2017 from $22.0 million in the prior year
reflecting the increase in our day weighted average vessels owned
to 28 from 22.
General and administrative expense for our
Ultramax Operations was $3.4 million for 2017 and $2.7 million for
2016. The increase is due to an increase in administrative
services fees, reflecting the growth of our fleet.
During 2016, we recorded a reversal of
loss/write off of vessels and assets held for sale related to
Ultramax vessels held for sale at December 31, 2015, due to accrual
adjustments and other cost true ups.
Kamsarmax Operations
|
For the Year Ended December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
67,825 |
|
|
$ |
31,684 |
|
|
$ |
36,141 |
|
|
114 |
|
Voyage
expenses |
300 |
|
|
(81 |
) |
|
381 |
|
|
470 |
|
TCE
Revenue |
$ |
67,525 |
|
|
$ |
31,765 |
|
|
$ |
35,760 |
|
|
113 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
35,336 |
|
|
27,083 |
|
|
8,253 |
|
|
30 |
|
Charterhire expense |
4,417 |
|
|
12,323 |
|
|
(7,906 |
) |
|
(64 |
) |
Charterhire termination |
— |
|
|
2,500 |
|
|
(2,500 |
) |
|
(100 |
) |
Vessel
depreciation |
18,713 |
|
|
14,522 |
|
|
4,191 |
|
|
29 |
|
General
and administrative expense |
1,916 |
|
|
1,718 |
|
|
198 |
|
|
12 |
|
Loss /
write down on assets held for sale |
17,701 |
|
|
11,557 |
|
|
6,144 |
|
|
53 |
|
Total operating expenses |
$ |
78,083 |
|
|
$ |
69,703 |
|
|
$ |
8,380 |
|
|
12 |
|
Operating
loss |
$ |
(10,558 |
) |
|
$ |
(37,938 |
) |
|
$ |
27,380 |
|
|
72 |
|
Vessel revenue for our Kamsarmax Operations
increased to $67.8 million in 2017 from $31.7 million in 2016 due
to significant increases in both rates and revenue days.
TCE revenue (see Non-GAAP Financial Measures)
for our Kamsarmax Operations was $67.5 million for 2017 and was
associated with a day-weighted average of 18 vessels owned and one
vessel time chartered-in, compared to $31.8 million for the prior
year, which was associated with a day-weighted average of 14
vessels owned and two vessels time chartered-in. TCE revenue per
day was $10,051 and $5,639 for 2017 and 2016, respectively.
Increased worldwide demand across all bulk sectors, regions and
commodities, as well as a reduction in supply drove the increase in
rates for both of our vessel types.
|
For the Year Ended December 31, |
|
|
|
|
Kamsarmax
Operations: |
2017 |
|
2016 |
|
Change |
|
% Change |
TCE Revenue |
$ |
67,525 |
|
|
$ |
31,765 |
|
|
$ |
35,760 |
|
|
113 |
|
TCE Revenue / Day |
$ |
10,051 |
|
|
$ |
5,639 |
|
|
$ |
4,412 |
|
|
78 |
|
Revenue Days |
6,718 |
|
|
5,633 |
|
|
1,085 |
|
|
19 |
|
Kamsarmax Operations vessel operating costs were
$35.3 million for 2017, including approximately $1.4 million of
takeover costs associated with new deliveries and $1.0 million of
other non-operating expenses and related to 18 vessels owned, on
average during the period. Vessel operating costs for the
prior year were $27.1 million and related to 14 vessels owned, on
average during the period. Daily operating costs excluding takeover
and other non-operating expenses for 2017 were $5,028.
Charterhire expense for our Kamsarmax Operations
decreased to $4.4 million in 2017 from $12.3 million in the prior
year reflecting the reduction in the number of vessels time
chartered-in from four at the start of 2016 to none at the end of
2017. During 2016, we recorded a $2.5 million charge to terminate
one time charter-in contract.
Kamsarmax Operations depreciation increased to
$18.7 million in 2017 from $14.5 million in the prior year
reflecting the increase in our weighted average vessels owned to 18
from 14.
General and administrative expense for our
Kamsarmax Operations was $1.9 million and $1.7 million for 2017 and
2016, respectively. The increase is due to an increase in
administrative services fees, reflecting the growth of our
fleet.
During 2017, we recorded a write down on assets
held for sale related to the sale of two Kamsarmax vessels to
an unaffiliated third party and in 2016, we recorded a write down
of vessels and assets held for sale related to the cancellation of
a shipbuilding contract for a Kamsarmax vessel.
Corporate
Corporate general and administrative and
financial expenses increased from $53.3 million in 2016 to $57.9
million in 2017, as increases in financial expenses due to
increasing LIBOR rates, higher levels of debt and reduced
capitalization of interest outweighed decreases in restricted stock
amortization as prior year grants, with higher fair values than
current grants, vested and were fully expensed.
During 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 EndedDecember 31, |
|
Year Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
Vessel
revenue |
|
$ |
51,127 |
|
|
$ |
26,846 |
|
|
$ |
162,205 |
|
|
$ |
78,402 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Voyage
expenses |
|
97 |
|
|
31 |
|
|
429 |
|
|
(45 |
) |
Vessel
operating costs |
|
22,801 |
|
|
19,036 |
|
|
86,664 |
|
|
68,832 |
|
Charterhire expense |
|
947 |
|
|
2,569 |
|
|
5,392 |
|
|
17,356 |
|
Charterhire contract termination charge |
|
— |
|
|
— |
|
|
— |
|
|
10,000 |
|
Vessel
depreciation |
|
12,840 |
|
|
10,586 |
|
|
48,510 |
|
|
36,562 |
|
General
and administrative expenses |
|
6,551 |
|
|
8,715 |
|
|
29,081 |
|
|
33,995 |
|
Loss /
write down on assets held for sale |
|
— |
|
|
— |
|
|
17,701 |
|
|
12,433 |
|
Total operating
expenses |
|
43,236 |
|
|
40,937 |
|
|
187,777 |
|
|
179,133 |
|
Operating
loss |
|
7,891 |
|
|
(14,091 |
) |
|
(25,572 |
) |
|
(100,731 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
197 |
|
|
301 |
|
|
1,100 |
|
|
933 |
|
Foreign
exchange loss |
|
(15 |
) |
|
49 |
|
|
(292 |
) |
|
(116 |
) |
Financial
expense, net |
|
(9,141 |
) |
|
(6,816 |
) |
|
(34,962 |
) |
|
(24,921 |
) |
Total other
expense |
|
(8,959 |
) |
|
(6,466 |
) |
|
(34,154 |
) |
|
(24,104 |
) |
Net
loss |
|
$ |
(1,068 |
) |
|
$ |
(20,557 |
) |
|
$ |
(59,726 |
) |
|
$ |
(124,835 |
) |
|
|
|
|
|
|
|
|
|
Loss per common share -
basic and diluted |
|
$ |
(0.01 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.83 |
) |
|
$ |
(2.22 |
) |
Weighted-average shares
outstanding - basic and diluted |
|
71,702 |
|
|
71,672 |
|
|
71,794 |
|
|
56,174 |
|
Scorpio Bulkers Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(Dollars in thousands) |
|
|
|
Unaudited |
|
|
|
|
December 31, 2017 |
|
December 31, 2016 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
68,535 |
|
|
$ |
101,734 |
|
Accounts
receivable |
|
7,933 |
|
|
7,050 |
|
Prepaid
expenses and other current assets |
|
6,087 |
|
|
6,696 |
|
Total current
assets |
|
82,555 |
|
|
115,480 |
|
Non-current assets |
|
|
|
|
Vessels,
net |
|
1,534,782 |
|
|
1,234,081 |
|
Vessels
under construction |
|
6,710 |
|
|
180,000 |
|
Deferred
financing costs, net |
|
3,068 |
|
|
3,307 |
|
Other
assets |
|
16,295 |
|
|
14,289 |
|
Total
non-current assets |
|
1,560,855 |
|
|
1,431,677 |
|
Total
assets |
|
$ |
1,643,410 |
|
|
$ |
1,547,157 |
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Bank
loans, net |
|
$ |
46,993 |
|
|
$ |
13,480 |
|
Capital
lease obligation |
|
1,144 |
|
|
— |
|
Accounts
payable and accrued expenses |
|
10,453 |
|
|
11,070 |
|
Total current
liabilities |
|
58,590 |
|
|
24,550 |
|
Non-current
liabilities |
|
|
|
|
Bank
loans, net |
|
576,967 |
|
|
493,793 |
|
Capital
lease obligation |
|
17,747 |
|
|
— |
|
Senior
Notes, net |
|
72,726 |
|
|
72,199 |
|
Total non-current
liabilities |
|
667,440 |
|
|
565,992 |
|
Total liabilities |
|
726,030 |
|
|
590,542 |
|
Shareholders’
equity |
|
|
|
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no
sharesissued or outstanding |
|
— |
|
|
— |
|
Common stock, $0.01 par value per share; authorized
112,500,000shares; issued and outstanding 74,902,364 and 75,298,676
shares as ofDecember 31, 2017 and December 31, 2016,
respectively |
|
762 |
|
|
753 |
|
Paid-in
capital |
|
1,745,844 |
|
|
1,714,358 |
|
Common
stock held in treasury, at cost; 1,465,448 shares at December
31,2017 |
|
(11,004 |
) |
|
— |
|
Accumulated deficit |
|
(818,222 |
) |
|
(758,496 |
) |
Total shareholders’
equity |
|
917,380 |
|
|
956,615 |
|
Total
liabilities and shareholders’ equity |
|
$ |
1,643,410 |
|
|
$ |
1,547,157 |
|
Scorpio Bulkers Inc. and
Subsidiaries |
Statements of Cash Flows
(unaudited) |
(Amounts in thousands) |
|
|
|
For the Year Ended December 31, |
|
|
2017 |
|
2016 |
Operating
activities |
|
|
|
|
Net loss |
|
$ |
(59,726 |
) |
|
$ |
(124,835 |
) |
Adjustment to
reconcile net loss to net cash used by |
|
|
|
|
operating activities: |
|
|
|
|
Restricted stock amortization |
|
12,645 |
|
|
18,609 |
|
Vessel
depreciation |
|
48,510 |
|
|
36,562 |
|
Amortization of deferred financing costs |
|
6,085 |
|
|
4,137 |
|
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) increase in accounts receivable |
|
(882 |
) |
|
1,146 |
|
Decrease
(increase) in prepaid expenses and other assets |
|
(4,032 |
) |
|
3,617 |
|
Increase
(decrease) in accounts payable and accrued expenses |
|
41 |
|
|
(5,768 |
) |
Net cash
provided by (used in) operating activities |
|
19,582 |
|
|
(52,196 |
) |
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 |
|
(217,033 |
) |
|
(408,307 |
) |
Net cash used
in investing activities |
|
(172,693 |
) |
|
(235,376 |
) |
Financing
activities |
|
|
|
|
Proceeds
from issuance of common stock |
|
— |
|
|
128,112 |
|
Proceeds
from issuance of long-term debt |
|
287,554 |
|
|
247,243 |
|
Repayments of long-term debt |
|
(153,003 |
) |
|
(185,239 |
) |
Common
stock repurchased |
|
(11,004 |
) |
|
— |
|
Dividend
paid |
|
(1,509 |
) |
|
— |
|
Debt
issue costs paid |
|
(2,126 |
) |
|
(1,110 |
) |
Net cash used
in financing activities |
|
119,912 |
|
|
189,006 |
|
Decrease in cash and
cash equivalents |
|
(33,199 |
) |
|
(98,566 |
) |
Cash at cash
equivalents, beginning of period |
|
101,734 |
|
|
200,300 |
|
Cash and cash
equivalents, end of period |
|
$ |
68,535 |
|
|
$ |
101,734 |
|
Scorpio Bulkers Inc. and
Subsidiaries |
Other Operating Data (unaudited) |
|
|
|
Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Time charter equivalent
revenue ($000’s) (1): |
|
|
|
|
|
|
|
|
Vessel
revenue |
|
$ |
51,127 |
|
|
$ |
26,846 |
|
|
$ |
162,205 |
|
|
$ |
78,402 |
|
Voyage
expenses |
|
(97 |
) |
|
(31 |
) |
|
(429 |
) |
|
45 |
|
Time
charter equivalent revenue |
|
$ |
51,030 |
|
|
$ |
26,815 |
|
|
$ |
161,776 |
|
|
$ |
78,447 |
|
Time charter equivalent
revenue attributable to: |
|
|
|
|
|
|
|
|
Kamsarmax |
|
$ |
20,811 |
|
|
$ |
10,790 |
|
|
$ |
67,525 |
|
|
$ |
31,765 |
|
Ultramax |
|
30,219 |
|
|
16,025 |
|
|
94,251 |
|
|
46,682 |
|
|
|
$ |
51,030 |
|
|
$ |
26,815 |
|
|
$ |
161,776 |
|
|
$ |
78,447 |
|
Revenue days: |
|
|
|
|
|
|
|
|
Kamsarmax |
|
1,651 |
|
|
1,458 |
|
|
6,718 |
|
|
5,633 |
|
Ultramax |
|
2,776 |
|
|
2,214 |
|
|
10,291 |
|
|
7,917 |
|
Combined |
|
4,427 |
|
|
3,672 |
|
|
17,009 |
|
|
13,550 |
|
TCE per revenue day
(1): |
|
|
|
|
|
|
|
|
Kamsarmax |
|
$ |
12,605 |
|
|
$ |
7,401 |
|
|
$ |
10,051 |
|
|
$ |
5,639 |
|
Ultramax |
|
$ |
10,886 |
|
|
$ |
7,238 |
|
|
$ |
9,159 |
|
|
$ |
5,896 |
|
Combined |
|
$ |
11,527 |
|
|
$ |
7,303 |
|
|
$ |
9,511 |
|
|
$ |
5,789 |
|
(1) We define Time Charter Equivalent (TCE) revenue as vessel
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 vessel 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. See Non-GAAP Financial Measures.
Fleet List as of February 2,
2018
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 |
SBI Gemini |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Libra |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Puma |
|
2014 |
|
64,000 |
|
|
Ultramax |
SBI Jaguar |
|
2014 |
|
64,000 |
|
|
Ultramax |
SBI Cougar |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Aries |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Taurus |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Pisces |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Virgo |
|
2017 |
|
64,000 |
|
|
Ultramax |
Total Ultramax |
|
|
|
2,307,800 |
|
|
|
Total Owned or Finance Leased Vessels DWT |
|
3,787,800 |
|
|
|
Time chartered-in vessels
The Company currently time
charters-in one Ultramax vessel. The terms of the
contract are summarized as follows:
Vessel Type |
|
Year Built |
|
DWT |
|
Where Built |
|
Daily BaseRate |
|
Earliest Expiry |
Ultramax |
|
2017 |
|
62,100 |
|
|
Japan |
|
$ |
10,125 |
|
|
30-Sep-19 |
|
(1 |
) |
Total TC DWT |
|
|
|
62,100 |
|
|
|
|
|
|
|
|
|
(1) This vessel is 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 was delivered to the Company in September 2017.
Vessel Under Construction
Kamsarmax Vessel
Vessel Name |
|
Expected Delivery |
|
DWT |
|
Shipyard |
Hull 2215 - TBN SBI
Lynx |
|
Q2-18 |
|
82,000 |
|
|
Jiangsu Yangzijiang Shipbuilding Co. Ltd. |
Total Kamsarmax Newbuilding DWT |
|
82,000 |
|
|
|
|
Conference Call on Results:
A conference call to discuss the Company’s
results will be held today, Monday, February 5, 2018, at 11:00 AM
Eastern Standard Time / 5:00 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 7087839.
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:
https://edge.media-server.com/m6/p/95xtxviv
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of
dry bulk commodities. Scorpio Bulkers Inc. has an operating
fleet of 56 vessels consisting of 55 wholly-owned or finance leased
drybulk vessels (including 18 Kamsarmax vessels and 37 Ultramax
vessels), and one time chartered-in Ultramax vessel. In
addition, one Kamsarmax vessel which is being constructed at
Jiangsu New Yangzijiang Shipbuilding Co Ltd in China is expected to
be delivered to the Company in the second quarter of 2018. Upon
final delivery of the last vessel, the Company’s owned and finance
leased fleet is expected to have a total carrying capacity of
approximately 3.9 million dwt and all of our owned vessels
will have carrying capacities of greater than 60,000 dwt.
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.
Earnings before interest, taxes, depreciation
and amortization (“EBITDA”), adjusted net loss and related per
share amounts, as well as adjusted EBITDA and TCE Revenue 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. Please see below
for reconciliations of EBITDA, adjusted net loss and related per
share amounts, and adjusted EBITDA. Please see “Other
Operating Data” for a reconciliation of TCE revenue.
EBITDA (unaudited)
|
Three Months Ended December 31, |
|
For the Year Ended December 31, |
In thousands |
2017 |
|
2016 |
|
2017 |
|
2016 |
Net loss |
$ |
(1,068 |
) |
|
$ |
(20,557 |
) |
|
$ |
(59,726 |
) |
|
$ |
(124,835 |
) |
Add Back: |
|
|
|
|
|
|
|
Net
interest expense |
7,107 |
|
|
|
5,119 |
|
|
27,307 |
|
|
16,326 |
|
Depreciation and amortization (1) |
16,903 |
|
|
|
16,412 |
|
|
67,710 |
|
|
62,835 |
|
EBITDA |
$ |
22,942 |
|
|
$ |
974 |
|
|
$ |
35,291 |
|
|
$ |
(45,674 |
) |
(1) Includes depreciation, amortization of deferred financing
costs and restricted stock amortization.
Adjusted net loss (unaudited)
|
For the Year Ended December 31, |
In thousands, except
per share data |
2017 |
|
2016 |
|
Amount |
|
Per share |
|
Amount |
|
Per share |
Net loss |
$ |
(59,726 |
) |
|
$ |
(0.83 |
) |
|
$ |
(124,835 |
) |
|
$ |
(2.22 |
) |
Adjustments: |
|
|
|
|
|
|
|
Loss /
write down on assets held for sale |
17,701 |
|
|
0.25 |
|
|
12,433 |
|
|
0.22 |
|
Write
down of deferred financing cost |
470 |
|
|
0.01 |
|
|
2,456 |
|
|
0.05 |
|
Charterhire contract termination charge |
— |
|
|
— |
|
|
10,000 |
|
|
0.18 |
|
Total adjustments |
$ |
18,171 |
|
|
$ |
0.26 |
|
|
$ |
24,889 |
|
|
$ |
0.44 |
|
Adjusted net
loss |
$ |
(41,555 |
) |
|
$ |
(0.57 |
) |
|
$ |
(99,946 |
) |
|
$ |
(1.78 |
) |
|
Adjusted EBITDA (unaudited)
|
For the Year EndedDecember
31, |
In thousands |
2017 |
|
2016 |
Net loss |
$ |
(59,726 |
) |
|
$ |
(124,835 |
) |
Impact of
Adjustments |
18,171 |
|
|
24,889 |
|
Adjusted net
loss |
(41,555 |
) |
|
(99,946 |
) |
Add Back: |
|
|
|
Net
interest expense |
27,307 |
|
|
16,326 |
|
Depreciation and amortization (1) |
67,710 |
|
|
62,835 |
|
Adjusted
EBITDA |
$ |
53,462 |
|
|
$ |
(20,785 |
) |
(1) Includes depreciation, amortization of deferred financing
costs and restricted stock amortization.
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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