Safe Bulkers, Inc. (the “Company”) (NYSE:SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three month period ended
March 31, 2018.
Summary of First Quarter 2018
Results
- Net revenues for the first quarter
of 2018 increased by 31% to $43.5 million from $33.3 million during
the same period in 2017.
- Net income for the first quarter of 2018 was $6.0 million as
compared to a net loss of $3.3 million, during the same period in
2017. Adjusted net income1 for the first quarter of 2018 was $5.7
million as compared to an Adjusted net loss of $3.4 million, during
the same period in 2017.
- EBITDA2 for the first quarter of 2018 increased by 53% to $23.5
million compared to $15.4 million during the same period in 2017.
Adjusted EBITDA3 for the first quarter of 2018 increased by 53% to
$23.2 million from $15.2 million during the same period in
2017.
- Earnings per share4 and Adjusted
earnings per share4 for the first quarter of 2018 were $0.03,
calculated on a weighted average number of 101,540,728 shares,
compared to a Loss per share and Adjusted loss per share of $0.07
during the same period in 2017, calculated on a weighted average
number of 99,284,181 shares.
___________1 Adjusted Net income/(loss) is a
non-GAAP measure. Adjusted Net income/(loss) represents Net
income/(loss), before loss on sale of assets, gain/(loss) on
derivatives and gain/(loss) on foreign currency. See Table 1.2
EBITDA is a non-GAAP measure and represents Net income/(loss) plus
net interest expense, tax, depreciation and amortization. See Table
1.3 Adjusted EBITDA is a non-GAAP measure and represents EBITDA
before loss on sale of assets, gain/(loss) on derivatives and
gain/(loss) on foreign currency. See Table 1.4 Earnings/(loss) per
share and Adjusted Earnings/(loss) per share represent Net
income/(loss) and Adjusted Net income/(loss) less preferred
dividend divided by the weighted average number of shares
respectively. See Table 1.
Redemption of Series B Preferred
Shares
On February 20, 2018, we completed the
previously announced redemption of 379,514 outstanding 8.00% Series
B Cumulative Redeemable Perpetual Preferred Shares (the “Series B
Preferred Shares“) at a redemption price of $25.00 per Series B
Preferred Share plus all accumulated and unpaid dividends. There
are currently no issued and outstanding Series B Preferred
Shares.
Fleet and Employment
Profile
As of May 24, 2018, our operational fleet
comprised of 39 drybulk vessels with an average age of 7.9 years
and an aggregate carrying capacity of 3.5 million dwt. Our fleet
consists of 14 Panamax class vessels, 9 Kamsarmax class vessels, 13
post- Panamax class vessels and 3 Capesize class vessels, all built
2003 onwards. Upon delivery of our last contracted drybulk newbuild
Kamsarmax class vessel, scheduled for delivery in June 2018, and
assuming no additional vessel acquisitions or disposals, our fleet
will comprise of 40 vessels, 11 of which will be eco-design
vessels, with an aggregate carrying capacity of 3.6 million
dwt.
Set out below is a table showing the Company’s
existing and newbuild vessels and their contracted employment as of
May 24, 2018:
|
|
|
|
|
|
Vessel Name |
DWT |
Year Built |
Country of construction |
Gross Charter Rate
[USD/day]1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
|
|
Koulitsa |
76,900 |
2003 |
Japan |
|
|
Paraskevi |
74,300 |
2003 |
Japan |
7,400 |
Apr 2017 – Jun 2018 |
Vassos |
76,000 |
2004 |
Japan |
13,350 |
Jan 2018 – Sept 2018 |
Katerina |
76,000 |
2004 |
Japan |
9,000 |
May 2018 - Apr 2019 |
Maritsa |
76,000 |
2005 |
Japan |
10,100 |
Sep 2017 – Dec 2018 |
Efrossini |
75,000 |
2012 |
Japan |
12,000 |
May 2018 – Jul 2018 |
Zoe |
75,000 |
2013 |
Japan |
8,200 |
Nov 2017 – Mar 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
13,000 |
Apr 2018 – Jun 2018 |
Kypros Sea |
77,100 |
2014 |
Japan |
11,250 |
Jul 2017 – Aug 2018 |
Kypros Bravery |
78,000 |
2015 |
Japan |
14,400 |
Apr 2018 – Aug 2018 |
Kypros Sky |
77,100 |
2015 |
Japan |
10,75014,000 |
May 2018 – May 2018Jun 2018 – Oct 2018 |
Kypros Loyalty |
78,000 |
2015 |
Japan |
12,850 |
Jan 2018 – Dec 2018 |
Kypros Spirit |
78,000 |
2016 |
Japan |
12,75014,000 |
Feb 2018 – May 2018May 2018 – Oct 2018 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
14,500 |
Apr 2018 – Mar 2019 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
11,600 |
Sep 2017 – Aug2018 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
13,250 |
Jan 2018 – May 2018 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
|
|
Pedhoulas Builder |
81,600 |
2012 |
China |
8,4009,900 |
Apr 2017 – Jun 2018Jun 2018 – Aug 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
14,850 |
Mar 2018– Jul 2018 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
12,600 |
Jan 2018 – Aug 2018 |
Pedhoulas Cherry 3 |
82,000 |
2015 |
China |
6,600 |
Apr 2017 – Oct 2018 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
10,000 |
Mar 2018 – May 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
12,75013,300 |
Apr 2018 – May 2018May 2018 – Jul 2018 |
Xenia |
87,000 |
2006 |
Japan |
10,00012,500 |
Feb 2017 – Jun 2018Jun 2018 – Nov 2019 |
Sophia |
87,000 |
2007 |
Japan |
7,250 |
Apr 2016 – Nov 2018 |
Eleni |
87,000 |
2008 |
Japan |
12,400 |
Apr 2018 – Jun 2018 |
Martine |
87,000 |
2009 |
Japan |
12,700 |
May 2018 – Jun 2018 |
Andreas K |
92,000 |
2009 |
South Korea |
14,250 |
Mar 2018 – Jun 2018 |
Panayiota K |
92,000 |
2010 |
South Korea |
13,000 |
May 2018 – Jun 2018 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
12,500 |
May 2018 – Jun 2018 |
Venus Heritage |
95,800 |
2010 |
Japan |
13,200 |
Nov 2017 – Mar 2019 |
Venus History |
95,800 |
2011 |
Japan |
14,750 |
Jan 2018 – Jan 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
13,950 |
Jan 2018 – Dec 2018 |
Troodos Sun |
85,000 |
2016 |
Japan |
15,950 |
Mar 2018 – Feb 2019 |
Troodos Air |
85,000 |
2016 |
Japan |
12,500 |
May 2018 – Sep 2019 |
Capesize |
Kanaris |
178,100 |
2010 |
China |
25,928 |
Sep 2011 – Jun 2031 |
Pelopidas |
176,000 |
2011 |
China |
38,000 |
Feb 2012 – Dec 2021 |
Lake Despina |
181,400 |
2014 |
Japan |
24,376 4 |
Jan 2014 – Jan 2024 |
Total dwt of existing fleet |
3,513,800 |
|
|
|
|
|
|
|
|
|
|
Hull Number |
DWT |
Expected delivery |
Country of construction |
Gross Charter Rate [USD/day] |
Charter Duration1 |
Kamsarmax |
Hull 1552 |
81,600 |
H1 2018 |
Japan |
15,500 |
Jun 2018 – May 2019 |
Total dwt of orderbook |
81,600 |
|
|
|
|
|
|
|
|
|
|
- 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 24, 2018, the scheduled start date. The
actual start date and redelivery date may differ from the
referenced scheduled start and redelivery dates depending on the
terms of the charter and market conditions and does not reflect the
options to extend the period time charter.
- Vessel sold and leased back on a
net daily bareboat charter rate of $6,500 for a period of 10 years,
with a purchase obligation at the end of the 10th year and purchase
options in favor of the Company after the second year of the
bareboat charter, at annual intervals and predetermined purchase
prices.
- A period time charter of ten years
at a gross daily charter rate of $23,100 for the first two and a
half years and of $24,810 for the remaining period. In January
2017, the period time charter was amended to reflect substitution
of the initial charterer with its subsidiary guaranteed by the
initial charterer and changes in payment terms; all other charter
terms remained unchanged. The charter agreement grants the
charterer an option to purchase the vessel at any time beginning at
the end of the seventh year of the charter, at a price of $39
million less a 1.00% commission, decreasing thereafter on a
pro-rated basis by $1.5 million per year. The Company holds a right
of first refusal to buy back the vessel in the event that the
charterer exercises its option to purchase the vessel and
subsequently offers to sell such vessel to a third party. The
charter agreement also grants the charterer the option to extend
the period time charter for an additional twelve months at a time
at a gross daily charter rate of $26,330, less 1.25% total
commissions, which option may be exercised by the charterer a
maximum of two times.
The contracted employment of fleet ownership
days as of May 24, 2018, was:
|
|
|
2018 (remaining) |
58 |
% |
2018 (full year) |
74 |
% |
2019 |
18 |
% |
2020 |
8 |
% |
|
|
|
Order book, capital expenditure
requirements and liquidity as of May 24, 2018
The remaining order book of the Company
consisted of one newbuild vessel, Hull No. 1552, with scheduled
delivery date in June 2018.
The aggregate remaining capital expenditure,
relating to the purchase consideration of the newbuild, amounted to
$21.6 million payable within 2018.
We have agreed to finance Hull No. 1552 by one
of our wholly-owned subsidiaries issuing $16.9 million of preferred
equity to an unaffiliated investor in 2018.
We had liquidity of $105.0 million consisting of
$69.4 million in cash and bank time deposits, $9.8 million in
restricted cash and $25.8 million net available under committed
loan facilities in addition to $16.9 million of preferred equity
and the capacity to borrow against one unencumbered vessel.
Refinancing of credit
facilities
As of May 24, 2018, the Company has agreed: i)
to finance the recently acquired second hand vessel, which was paid
from cash from operations, by increasing an existing credit
facility of $36.7 million secured by three vessels to $54.0 million
which will be secured by the four vessels after the increase; the
relevant tranche of the loan will have a 6 year term and ii) to
finance an unencumbered vessel and refinance another existing
facility of $23.5 million with a new 5 year term loan of $32.0
million. Both loan facilities contain financial covenants
consistent with the existing loan and credit facilities of the
Company.
Dividend Policy
The Board of Directors of the Company has not
declared a dividend to its common stock holders for the first
quarter of 2018. The Company had 101,545,460 shares of common stock
issued and outstanding as of May 24, 2018.
The Company declared in April a cash dividend of
$0.50 per share on its 8.00% Series C Cumulative Redeemable
Perpetual Preferred Shares (NYSE:SB.PR.C) and on its 8.00% Series D
Cumulative Redeemable Perpetual Preferred Shares (NYSE:SB.PR.D) for
the period from January 30, 2018 to April 29, 2018, which was paid
on April 30, 2018 to the respective shareholders of record as of
April 23, 2018.
The declaration and payment of dividends, if
any, will always be subject to the discretion of the Board of
Directors of the Company. The timing and amount of any dividends
declared will depend on, among other things: (i) the Company’s
earnings, financial condition and cash requirements and available
sources of liquidity; (ii) decisions in relation to the Company’s
growth and leverage strategies; (iii) provisions of Marshall
Islands and Liberian law governing the payment of dividends; (iv)
restrictive covenants in the Company’s existing and future debt
instruments; and (v) global economic and financial conditions.
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: “Our revenues continued to improve supporting gradual
increase in our profitability. We intend to continue to use our
cash from operations to further improve our capital structure and
deleverage in forthcoming quarters."
Conference Call
On Wednesday, May 30, 2018 at 8:30 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
(866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll
Free Dial In) or +44 (0)1452-542-301 (Standard International Dial
In). Please quote “Safe Bulkers” to the
operator.
A telephonic replay of the conference call will
be available until June 6, 2018 by dialing 1 (866) 247-4222 (US
Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44
(0)1452 550-000 (Standard International Dial In). Access Code:
1859591#
Slides and Audio Webcast
There will also be a live, and then archived,
webcast of the conference call, available through the Company’s
website (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
2018 Results
Net income for the first quarter of 2018 was
$6.0 million compared to a net loss of $3.3 million during the same
period in 2017, mainly due to the following factors:
Net revenues: Net revenues increased by 31% to
$43.5 million for the first quarter of 2018, compared to $33.3
million for the same period in 2017, mainly due to improved charter
rates and to a lesser extent an increase in the average number of
vessels. The Company operated 39.00 vessels on average during the
first quarter of 2018, earning a TCE6 rate of $11,999, compared to
37.82 vessels and a TCE6 rate of $9,417 during the same period in
2017.
Vessel operating expenses: Vessel operating
expenses, which include dry-docking cost and initial supplies
expenses, increased by 19% to $14.5 million for the first quarter
of 2018, compared to $12.2 million for the same period in 2017,
mainly as a result of: i) increased costs of maintenance, general
stores and spares of $3.5 million for the first quarter of 2018,
compared to $2.0 million for the same period in 2017, due to
increased purchase of spares relating to the scheduled drydocking
of three vessels in the second quarter of 2018 and ii) increased
average number of vessels by 3% to 39.00 vessels for the first
quarter of 2018, from 37.82 vessels for the same period in 2017 and
increased maintenance costs due to a second-hand delivery at the
end of 2017.
Depreciation: Depreciation decreased by 8% to
$11.6 million for the first quarter of 2018, compared to $12.6
million for the same period in 2017, as a result of the lower cost
basis of four of our vessels following the impairment recorded
during the fourth quarter of 2017, partly offset by the increase in
the average number of vessels operated by the Company during the
first quarter of 2018.
Interest expenses: Interest expense remained
almost stable to $5.8 million in the first quarter of 2018,
compared to $5.7 million for the same period in 2017.
Voyage expenses: Voyage expenses remained stable
at $1.5 million for the first quarter of 2018 compared to the same
period in 2017.
Daily vessel operating expenses5: Daily vessel
operating expenses, which are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period, increased by 15% to $4,132 for the first quarter of
2018 compared to $3,596 for the same period in 2017 as a result of
the increased purchase of spares relating to the scheduled
drydocking of three vessels in the second quarter of 2018 and
increased maintenance costs due to a second-hand delivery at the
end of 2017.
Daily general and administrative expenses5:
Daily general and administrative expenses, which include management
fees payable to our Managers7 increased by 2.4% to $1,184 for the
first quarter of 2018, compared to $1,156 for the same period in
2017.
___________5 See Table 2.6 Time charter
equivalent rates, or TCE rate, represents the Company’s charter
revenues less commissions and voyage expenses during a period
divided by the number of our available days during such period.7
Safety Management Overseas S.A. and Safe Bulkers Management
Limited, each a related party referred in this press release as
“our Manager” and collectively “our Managers".
|
Unaudited Interim Financial Information and
Other Data |
|
SAFE BULKERS, INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) |
(In thousands of U.S. Dollars except for share
and per share data) |
|
|
Three-Months Period Ended
March 31, |
|
2017 |
|
2018 |
REVENUES: |
|
|
|
|
|
Revenues |
34,663 |
|
|
45,352 |
|
Commissions |
(1,336 |
) |
|
(1,851 |
) |
Net revenues |
33,327 |
|
|
43,501 |
|
EXPENSES: |
|
|
Voyage
expenses |
(1,452 |
) |
|
(1,506 |
) |
Vessel
operating expenses |
(12,242 |
) |
|
(14,503 |
) |
Depreciation |
(12,640 |
) |
|
(11,601 |
) |
General
and administrative expenses |
(3,935 |
) |
|
(4,156 |
) |
Other
operating expense |
(475 |
) |
|
- |
|
Loss on
sale of assets |
(120 |
) |
|
- |
|
Operating income |
2,463 |
|
|
11,735 |
|
OTHER (EXPENSE)
/ INCOME: |
|
|
Interest
expense |
(5,701 |
) |
|
(5,786 |
) |
Other
finance costs |
(49 |
) |
|
(132 |
) |
Interest
income |
136 |
|
|
214 |
|
Gain on
derivatives |
101 |
|
|
17 |
|
Foreign
currency gain |
195 |
|
|
248 |
|
Amortization and write-off of deferred finance charges |
(399 |
) |
|
(342 |
) |
Net (loss)/ income |
(3,254 |
) |
|
5,954 |
|
Less
Preferred dividend |
3,493 |
|
|
2,858 |
|
Net
(loss)/ income available to common shareholders |
(6,747 |
) |
|
3,096 |
|
(Loss)/Income per share basic and
diluted |
(0.07 |
) |
|
0.03 |
|
Weighted average number of shares |
99,284,181 |
|
|
101,540,728 |
|
|
|
|
|
|
|
|
|
|
Three-Months Period Ended
March 31, |
|
|
2017 |
|
|
2018 |
(In million of
U.S. Dollars) |
|
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
10.2 |
|
|
|
$ |
20.1 |
|
Net cash used in
investing activities |
|
|
(6.4 |
) |
|
|
|
(2.3 |
) |
Net cash provided
by/(used in) financing activities |
|
|
15.4 |
|
|
|
|
(18.2 |
) |
Net increase/(decrease)
in cash and cash equivalents |
|
|
19.2 |
|
|
|
|
(0.4 |
) |
|
|
SAFE BULKERS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
(In thousands of U.S.
Dollars) |
|
|
December 31, 2017 |
|
March 31, 2018 |
ASSETS |
|
|
|
Cash,
restricted cash and time deposits |
60,016 |
|
61,265 |
Other
current assets |
19,070 |
|
17,004 |
Vessels,
net |
942,876 |
|
931,275 |
Advances
for vessels |
3,653 |
|
3,976 |
Restricted cash non-current |
8,651 |
|
8,651 |
Other
non-current assets |
831 |
|
826 |
Total assets |
1,035,097 |
|
1,022,997 |
LIABILITIES AND
EQUITY |
|
|
|
Other
current liabilities |
11,345 |
|
11,076 |
Current
portion of long-term debt, net |
25,588 |
|
48,046 |
Long-term
debt, net |
541,816 |
|
514,019 |
Shareholders’ equity |
456,348 |
|
449,856 |
Total liabilities and equity |
1,035,097 |
|
1,022,997 |
|
|
|
|
|
TABLE 1 |
RECONCILIATION OF ADJUSTED NET INCOME/(LOSS),
EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER
SHARE |
|
|
Three-Months Period Ended
March 31, |
(In thousands of U.S.
Dollars except for share and per share data) |
2017 |
|
2018 |
Net
(Loss)/Income – Adjusted Net (Loss)/Income |
|
|
Net (loss)/
income |
(3,254 |
) |
|
5,954 |
|
Plus Loss on sale of
assets |
120 |
|
|
- |
|
Less Gain on
derivatives |
(101 |
) |
|
(17 |
) |
Less Foreign currency
gain |
(195 |
) |
|
(248 |
) |
Adjusted Net
(loss)/income |
(3,430 |
) |
|
5,689 |
|
|
|
|
EBITDA -
Adjusted EBITDA |
|
|
Net
(loss)/income |
(3,254 |
) |
|
5,954 |
|
Plus Net Interest
expense |
5,565 |
|
|
5,572 |
|
Plus Depreciation |
12,640 |
|
|
11,601 |
|
Plus Amortization |
399 |
|
|
342 |
|
EBITDA |
15,350 |
|
|
23,469 |
|
Plus Loss on sale of
assets |
120 |
|
|
- |
|
Less Gain on
derivatives |
(101 |
) |
|
(17 |
) |
Less Foreign currency
gain |
(195 |
) |
|
(248 |
) |
ADJUSTED
EBITDA |
15,174 |
|
|
23,204 |
|
|
|
|
(Loss)/
Earnings per share |
|
|
Net
(loss)/income |
(3,254 |
) |
|
5,954 |
|
Less Preferred
dividend |
3,493 |
|
|
2,858 |
|
Net (loss)/income
available to common shareholders |
(6,747 |
) |
|
3,096 |
|
Weighted average number
of shares |
99,284,181 |
|
|
101,540,728 |
|
(Loss)/Earnings
per share |
(0.07 |
) |
|
0.03 |
|
|
|
|
Adjusted
(Loss)/Earnings per share |
|
|
Adjusted Net
(Loss)/Income |
(3,430 |
) |
|
5,689 |
|
Less Preferred
dividend |
3,493 |
|
|
2,858 |
|
Adjusted Net
(loss)/income available to common shareholders |
(6,923 |
) |
|
2,831 |
|
Weighted average number
of shares |
99,284,181 |
|
|
101,540,728 |
|
Adjusted
(Loss)/Earnings per share |
(0.07 |
) |
|
0.03 |
|
|
|
|
|
|
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP. - EBITDA represents Net
income/(loss) before interest, income tax expense, depreciation and
amortization. - Adjusted EBITDA represents EBITDA before loss on
sale of assets, gain/(loss) on derivatives, and gain/(loss) on
foreign currency. - Adjusted Net income/(loss) represents Net
income/(loss) before loss on sale of assets, gain/(loss) on
derivatives, and gain/(loss) on foreign currency. - Adjusted
earnings/(loss) per share represents Adjusted Net income/(loss)
less preferred dividend divided by the weighted average number of
shares.EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and
Adjusted earnings/(loss) per share are used as supplemental
financial measures by management and external users of financial
statements, such as investors, to assess our financial and
operating performance. The Company believes that these non-GAAP
financial measures assist our management and investors by
increasing the comparability of our performance from period to
period. The Company believes that including these supplemental
financial measures assists our management and investors in (i)
understanding and 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/(loss) and Adjusted earnings/(loss) per share
are useful in evaluating the Company’s operating performance from
period to period because the calculation of EBITDA generally
eliminates the effects of financings, income taxes and the
accounting effects of capital expenditures and acquisitions, the
calculation of Adjusted EBITDA generally further eliminates the
effects from loss on sale of assets, gain/(loss) on derivatives 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/(loss) generally eliminates the effects of loss on sale of
assets, gain/(loss) on derivatives 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/(loss) and Adjusted
earnings/(loss) per share have limitations as analytical tools, and
should not be considered in isolation, or as a substitute for
analysis of the Company’s results as reported under US GAAP.
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) should not be
considered as substitutes for net income and other operations data
prepared in accordance with US GAAP or as a measure of
profitability. While EBITDA and Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, are
frequently used as measures of operating results and performance,
they are not necessarily comparable to other similarly titled
captions of other companies due to differences in methods of
calculation. In evaluating Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted EBITDA, Adjusted Net income/(loss) and
Adjusted earnings/(loss) per share should not be construed as an
inference that our future results will be unaffected by the
excluded items.
|
|
|
TABLE 2: FLEET DATA AND AVERAGE DAILY
INDICATORS |
|
|
|
|
|
Three-Month Period Ended March 31, |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
Number of vessels at
period end |
|
|
38 |
|
|
|
39 |
|
Average age of fleet
(in years) |
|
|
6.75 |
|
|
|
7.76 |
|
Ownership days (1) |
|
|
3,404 |
|
|
|
3,510 |
|
Available days (2) |
|
|
3,385 |
|
|
|
3,500 |
|
Operating days (3) |
|
|
3,333 |
|
|
|
3,424 |
|
Fleet utilization
(4) |
|
|
97.9 |
% |
|
|
97.5 |
% |
Average number of
vessels in the period (5) |
|
|
37.82 |
|
|
|
39.00 |
|
|
|
|
|
|
AVERAGE DAILY
RESULTS |
|
|
|
|
Time charter equivalent
rate (6) |
|
$ |
9,417 |
|
|
$ |
11,999 |
|
Daily vessel operating
expenses (7) |
|
$ |
3,596 |
|
|
$ |
4,132 |
|
Daily general and
administrative expenses (8) |
|
$ |
1,156 |
|
|
$ |
1,184 |
|
|
|
|
|
|
|
|
|
|
___________
(1) |
|
Ownership days
represents the aggregate number of days in a period during which
each vessel in our fleet has been owned by us. |
(2) |
|
Available days
represents the total number of days in a period during which each
vessel in our fleet was in our possession, net of off-hire days
associated with scheduled maintenance, which includes major
repairs, drydockings, vessel upgrades or special or intermediate
surveys. |
(3) |
|
Operating days
represents the number of our available days in a period less the
aggregate number of days that our vessels are off-hire due to any
reason, excluding scheduled maintenance. |
(4) |
|
Fleet utilization is
calculated by dividing the number of our operating days during a
period by the number of our ownership days during that period. |
(5) |
|
Average number of
vessels in the period is calculated by dividing ownership days in
the period by the number of days in that period. |
(6) |
|
Time charter equivalent
rate, or TCE rate, represents our charter revenues less commissions
and voyage expenses during a period divided by the number of
available days during such period. |
(7) |
|
Daily vessel operating
expenses include the costs for crewing, insurance, lubricants,
spare parts, provisions, stores, repairs, maintenance, statutory
and classification expense, drydocking, intermediate and special
surveys and other miscellaneous items. Daily vessel operating
expenses are calculated by dividing vessel operating expenses for
the relevant period by ownership days for such period. |
(8) |
|
Daily general and
administrative expenses include daily management fees payable to
our Managers and daily company administration expenses. Daily
general and administrative expenses are calculated by dividing
general and administrative expenses for the relevant period by
ownership days for such period. |
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 1933, as amended, and
in Section 21E of the Securities Act of 1934, as amended)
concerning future events, the Company’s growth strategy and
measures to implement such strategy, including expected vessel
acquisitions and entering into further time charters. Words such as
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates” and variations of such words and similar expressions
are intended to identify forward-looking statements. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct. These
statements involve known and unknown risks and are based upon a
number of assumptions and estimates that are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, changes in the demand
for drybulk vessels, competitive factors in the market in which the
Company operates, risks associated with operations outside the
United States and other factors listed from time to time in the
Company’s filings with the Securities and Exchange Commission. The
Company expressly disclaims any obligations or undertaking to
release any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company’s
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
For further information please
contact:
Company Contact:Dr. Loukas
BarmparisPresident Safe Bulkers, Inc.Tel.: +30 211
1888400 +357 25 887
200E-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
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