Safe Bulkers, Inc. (the “Company”) (NYSE:SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three and six months period
ended June 30, 2018.
Summary of Second Quarter 2018
Results
- Net revenues for the second quarter of 2018 increased by 34% to
$47.0 million from $35.0 million during the same period in
2017.
- Net income for the second quarter of 2018 was $4.1 million as
compared to a net loss of $1.6 million, during the same period in
2017. Adjusted net income1 for the second quarter of 2018 was $4.8
million as compared to adjusted net loss1 of $2.3 million, during
the same period in 2017.
- EBITDA2 for the second quarter of 2018 increased by 32% to
$22.4 million as compared to $17.0 million during the same period
in 2017. Adjusted EBITDA3 for the second quarter of 2018 increased
by 43% to $23.1 million from $16.2 million during the same period
in 2017.
- Earnings per share4 and Adjusted earnings per share4 for the
second quarter of 2018 were $0.01 and $0.02 respectively,
calculated on a weighted average number of 101,549,872 shares,
compared to a Loss per share4 of $0.07 and Adjusted loss per share4
of $0.07 during the same period in 2017, calculated on a weighted
average number of 101,363,578 shares.
Summary of Six Months Ended June 30,
2018 Results
- Net revenues for the six months of 2018 increased by 33% to
$90.5 million from $68.3 million during the same period in
2017.
- Net income for the six months of 2018 was $10.1 million as
compared to a net loss of $4.9 million, during the same period in
2017. Adjusted net income1 for the six months of 2018 was $10.5
million as compared to adjusted net loss1 of $5.3 million, during
the same period in 2017.
- EBITDA2 for the six months of 2018 increased by 42% to $45.9
million as compared to $32.3 million during the same period in
2017. Adjusted EBITDA3 for the six months of 2018 increased by 45%
to $46.3 million as compared to $31.9 million during the same
period in 2017.
- Earnings per share4 and Adjusted earnings per share4 for the
six months of 2018 were $0.04 and $0.05, respectively, calculated
on a weighted average number of 101,545,325 shares, as compared to
Loss per share4 and Adjusted Loss per share4 of $0.13 and $0.14,
respectively, during the same period in 2017, calculated on a
weighted average number of 100,329,624 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, early redelivery cost, other
operating expense 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, early
redelivery cost, other operating expense 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 and preferred deemed dividend divided
by the weighted average number of shares respectively. See Table
1.
Fleet and Employment
Profile
In June 2018, the Company took delivery of the
last contracted newbuild on our orderbook, the Pedhoulas Cedrus,
(ex-Hull No. 1552), a 81,800 dwt Japanese built Kamsarmax
class vessel. Upon delivery from the shipyard the vessel commenced
employment on a twelve month time charter contract at a gross daily
charter rate of $15,500. In connection therewith, our ship owning
subsidiary completed the previously announced issuance of $16.9
million of 2.95% cumulative redeemable perpetual preferred shares
to an unaffiliated investor, to partially finance the acquisition
of Pedhoulas Cedrus, which is presented as mezzanine equity.
As of July 20, 2018, our operational fleet
comprised of 40 drybulk vessels, 11 of which eco-design, with an
average age of 7.9 years and an aggregate carrying capacity of 3.6
million dwt. Our fleet consists of 14 Panamax class vessels, 10
Kamsarmax class vessels, 13 post- Panamax class vessels and 3
Capesize class vessels, all built from 2003 onwards.
Set out below is a table showing the Company’s
vessels and their contracted employment as of July 20, 2018:
|
|
|
|
|
|
Vessel Name |
DWT |
Year Built |
Country of construction |
Gross Charter Rate
[USD/day]1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
12,750 |
Jun 2018 – Aug 2018 |
Koulitsa |
76,900 |
2003 |
Japan |
13,250 |
Jun 2018 – Aug 2018 |
Paraskevi |
74,300 |
2003 |
Japan |
11,250 |
Jul 2018 – Aug 2018 |
Vassos |
76,000 |
2004 |
Japan |
13,500 |
Jul 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 |
10,850 |
Jul 2018 – Sept 2018 |
Zoe |
75,000 |
2013 |
Japan |
8,200 |
Nov 2017 – Mar 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
11,600 |
Jun 2018 – Aug 2018 |
Kypros Sea |
77,100 |
2014 |
Japan |
11,25013,900 |
Jul 2017 – Aug 2018 Aug 2018 – Feb 2019 |
Kypros Bravery |
78,000 |
2015 |
Japan |
14,400 |
Apr 2018 – Sep 2018 |
Kypros Sky |
77,100 |
2015 |
Japan |
14,000 |
May 2018 – Oct 2018 |
Kypros Loyalty |
78,000 |
2015 |
Japan |
12,850 |
Jan 2018 – Mar 2019 |
Kypros Spirit |
78,000 |
2016 |
Japan |
14,000 |
Jun 2018 – Oct 2018 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
14,500 |
Apr 2018 – Apr 2019 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
11,600 |
Sep 2017 – Oct 2018 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
11,600 |
Jul 2018 – Jul 2018 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
14,150 |
Jun 2018 – Jul 2019 |
Pedhoulas Builder |
81,600 |
2012 |
China |
9,900 |
Jun 2018 – Aug 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
13,000 |
Jul 2018 – Dec 2018 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
12,600 |
Jan 2018 – Aug 2018 |
Pedhoulas Cherry 3, 5 |
82,000 |
2015 |
China |
6,600 |
Apr 2017 – Oct 2018 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
10,000 |
Mar 2018 – May 2019 |
Pedhoulas Cedrus |
81,800 |
2018 |
Japan |
15,500 |
Jun 2018 – Jul 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
13,300 |
Jun 2018 – Jul 2018 |
Xenia |
87,000 |
2006 |
Japan |
12,500 |
Jun 2018 – Nov 2019 |
Sophia |
87,000 |
2007 |
Japan |
7,250 |
Apr 2016 – Nov 2018 |
Eleni |
87,000 |
2008 |
Japan |
12,750 |
Jul 2018 – Aug 2018 |
Martine |
87,000 |
2009 |
Japan |
12,800 |
Jul 2018 – Aug 2018 |
Andreas K |
92,000 |
2009 |
South Korea |
13,350 |
Jul 2018 – Aug 2018 |
Panayiota K |
92,000 |
2010 |
South Korea |
13,300 |
Jun 2018 – Aug 2018 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
13,500 |
Jul 2018 – Sept 2018 |
Venus Heritage |
95,800 |
2010 |
Japan |
13,200 |
Nov 2017 – Aug 2019 |
Venus History |
95,800 |
2011 |
Japan |
14,750 |
Jan 2018 – May 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
13,950 |
Jan 2018 – Feb 2019 |
Troodos Sun |
85,000 |
2016 |
Japan |
15,950 |
Mar 2018 – May 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 |
3,595,600 |
|
|
|
|
- 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 July
20, 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 Company has exercised the purchase option at a
predetermined price for this vessel. The transaction is expected to
consummate in August 2018.
The contracted employment of fleet ownership
days as of July 20, 2018 was:
|
|
|
2018 (remaining) |
65 |
% |
2018 (full year) |
84 |
% |
2019 |
24 |
% |
2020 |
8 |
% |
|
|
|
Liquidity as of July 20,
2018
We had liquidity of $91.5 million consisting of
$81.7 million in cash and bank time deposits, $9.8 million in
restricted cash and the capacity to borrow against one unencumbered
vessel.
Update on sale and leaseback
transactions
In May 2018, we exercised the option under a
sale and leaseback agreement to purchase one Kamsarmax class vessel
at a predetermined price of $22.7 million. The transaction is
scheduled to consummate in August 2018, and the Company is expected
to finance the acquisition of the vessel through cash on hand.
The sale and leaseback transaction was accounted
as a financing transaction and the sale proceeds from the sale and
leaseback transaction were recorded as debt. Following the exercise
of the purchase option, the outstanding debt obligation of this
vessel, amounting to $22.3 million as of June 30, 2018, has been
included in the current portion of the long term debt in our
financial statements. The related deferred finance costs will be
written off upon the consummation of the transaction.
This is the third purchase option the Company
has exercised out of five sale and lease back arrangements
previously entered into by the Company. Refinancing of
credit facilities as of July 20, 2018
The Company has agreed to amend an existing
credit facility of $160.5 million expiring in 2022, secured by 11
vessels, with a new credit facility of $142.0 million secured by 10
vessels, extending the tenor by two years, pushing back part of the
balloon payment to 2024, and reducing the principal installments
for the next 4 years by $63.3 million.
The Company has agreed to refinance an existing
credit facility of $28.0 million expiring in 2021, with a new
credit facility of $26.0 million, extending the tenor by one year,
pushing back the balloon payment to 2022, and reducing principal
installments for the next 3 years by $3.2 million.
These amended facilities will contain lower
margins and similar covenants compared to the existing facilities
of the Company.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the second quarter of 2018. The Company
had 101,554,284 shares of common stock issued and outstanding as of
July 20, 2018.
The Company declared in July 2018 a cash
dividend of $0.50 per share on each of its 8.00% Series C
Cumulative Redeemable Perpetual Preferred Shares (NYSE:SB.PR.C) and
8.00% Series D Cumulative Redeemable Perpetual Preferred Shares
(NYSE:SB.PR.D) for the period from April 30, 2018 to July 29, 2018
payable on July 30, 2018 to the respective shareholders of record
as of July 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: ‘‘In the second quarter of 2018, our Time Charter Equivalent
rate continued to increase as new charters have replaced older
expiring charters at higher rates. We continued to focus on
improving our capital structure and financing outflows by
refinancing one Kamsarmax vessel under an existing sale and
leaseback arrangement and by financing the delivery of our last
outstanding newbuild with preferred equity of the ship owning
subsidiary. We also agreed to refinance two loans with balloon
payments until after 2021, extending our debt profile and
increasing our financial flexibility.’’
Conference Call
On Thursday, July 26, 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 August 2, 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 (www.safebulkers.com). Participants in the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
Management Discussion of Second Quarter
2018 Results
Net income for the second quarter of 2018
increased to $4.1 million compared to net loss of $1.6 million
during the same period in 2017, mainly due to the following
factors:
Net revenues: Net revenues increased by 34% to
$47.0 million for the second quarter of 2018, compared to $35.0
million for the same period in 2017, mainly as a result of
improvement in charter rates and to a lesser extent an increase in
the average number of vessels. The Company operated 39.19 vessels
on average during the second quarter of 2018, earning a TCE5 rate
of $13,225, compared to 38.00 vessels and a TCE5 rate of $9,978
during the same period in 2017.
Vessel operating expenses: Vessel operating
expenses, which include dry-docking cost and initial supplies
expenses, increased by 27% to $17.1 million for the second quarter
of 2018 compared to $13.5 million for the same period in 2017,
mainly as a result of: i) increased costs of maintenance, general
stores, provisions and spares of $6.3 million for the second
quarter of 2018, compared to $3.5 million for the same period
in 2017, ii) increased average number of vessels by 3% to 39.19
vessels for the second quarter of 2018, compared to 38.00 vessels
for the same period in 2017 and iii) the cost of initial supplies
for our last newbuild vessel delivered to us in June 2018. The
increase of costs for maintenance, general stores, provisions and
spares in the second quarter of 2018 was mainly due to the
completion of two dry-dockings for 15-year old vessels, one
dry-docking for a 10-year old vessel and partial completion of one
dry-docking of a 5-year old vessel, compared to two dry-dockings
for 5-year old vessels and one dry-docking for a 10-year old vessel
in the second quarter of 2017.
Depreciation: Depreciation decreased by 8% to
$11.8 million for the second quarter of 2018, compared to $12.8
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
second quarter of 2018.
__________________
5 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.
Interest expense: Interest expense increased to
$6.5 million in the second quarter of 2018 compared to $5.9 million
for the same period in 2017, as a result of the increased USD
LIBOR6 affecting the weighted average interest rate of our loans
and credit facilities.
Voyage expenses: Voyage expenses increased to
$1.8 million for the second quarter of 2018 compared to $1.0
million for the same period in 2017, as a result of increased
vessel repositioning expenses caused by higher fuel prices.
Daily vessel operating expenses7: Daily vessel
operating expenses which are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period, increased by 24% to $4,809 for the second quarter of
2018 compared to $3,893 for the same period in 2017 due to increase
of vessel operating expenses discussed above.
Daily general and administrative expenses7:
Daily general and administrative expenses, which include management
fees payable to our Managers8, increased by 11% to $1,280 for the
second quarter of 2018, compared to $1,157 for the same period in
2017 mainly due to increased management fees charged by our
Managers.
__________________
6 London interbank offered rate.
7 See Table 2.
8 Safety Management Overseas S.A. and Safe Bulkers Management
Limited, each of which is a related party that is referred to in
this press release as “our Manager” and collectively “our
Managers’’.
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 June
30, |
Six-Months Period Ended June 30, |
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
36,431 |
|
|
49,037 |
|
|
71,094 |
|
|
94,389 |
|
Commissions |
(1,421 |
) |
|
(2,018 |
) |
|
(2,757 |
) |
|
(3,869 |
) |
Net revenues |
35,010 |
|
|
47,019 |
|
|
68,337 |
|
|
90,520 |
|
EXPENSES: |
|
|
|
|
Voyage
expenses |
(1,014 |
) |
|
(1,802 |
) |
|
(2,466 |
) |
|
(3,307 |
) |
Vessel
operating expenses |
(13,462 |
) |
|
(17,149 |
) |
|
(25,704 |
) |
|
(31,652 |
) |
Depreciation |
(12,831 |
) |
|
(11,785 |
) |
|
(25,471 |
) |
|
(23,386 |
) |
General
and administrative expenses |
(4,002 |
) |
|
(4,564 |
) |
|
(7,937 |
) |
|
(8,721 |
) |
Loss on
sale of assets |
- |
|
|
- |
|
|
(120 |
) |
|
- |
|
Other
operating expense |
- |
|
|
- |
|
|
(390 |
) |
|
- |
|
Early
redelivery cost |
- |
|
|
(70 |
) |
|
(85 |
) |
|
(70 |
) |
Operating income |
3,701 |
|
|
11,649 |
|
|
6,164 |
|
|
23,384 |
|
OTHER (EXPENSE)
/ INCOME: |
|
|
|
|
Interest
expense |
(5,893 |
) |
|
(6,488 |
) |
|
(11,594 |
) |
|
(12,274 |
) |
Other
finance costs |
(296 |
) |
|
(414 |
) |
|
(345 |
) |
|
(546 |
) |
Interest
income |
257 |
|
|
218 |
|
|
393 |
|
|
432 |
|
(Loss)/gain on derivatives |
(46 |
) |
|
(6 |
) |
|
55 |
|
|
11 |
|
Foreign
currency gain/(loss) |
789 |
|
|
(618 |
) |
|
984 |
|
|
(370 |
) |
Amortization and write-off of deferred finance charges |
(108 |
) |
|
(227 |
) |
|
(507 |
) |
|
(569 |
) |
Net (loss)/income |
(1,596 |
) |
|
4,114 |
|
|
(4,850 |
) |
|
10,068 |
|
Less
Preferred dividend |
2,942 |
|
|
2,780 |
|
|
6,435 |
|
|
5,637 |
|
Less
Preferred deemed dividend |
2,146 |
|
|
- |
|
|
2,146 |
|
|
- |
|
Net
(loss)/income available to common shareholders |
(6,684 |
) |
|
1,334 |
|
|
(13,431 |
) |
|
4,431 |
|
(Loss)/Earnings per share basic and diluted |
(0.07 |
) |
|
0.01 |
|
|
(0.13 |
) |
|
0.04 |
|
Weighted average number of shares |
101,363,578 |
|
|
101,549,872 |
|
|
100,329,624 |
|
|
101,545,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Period Ended June
30, |
|
|
2017 |
|
2018 |
(In millions of
U.S. Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
26.6 |
|
|
$ |
43.1 |
|
Net cash
used in investing activities |
|
|
(22.4 |
) |
|
|
(26.0 |
) |
Net cash
used in financing activities |
|
|
(14.7 |
) |
|
|
(23.3 |
) |
Net
decrease in cash and cash equivalents |
|
|
(10.5 |
) |
|
|
(6.2 |
) |
|
|
|
|
|
|
|
|
|
SAFE BULKERS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands of
U.S. Dollars)
|
|
|
|
|
December 31, 2017 |
|
June 30, 2018 |
ASSETS |
|
|
|
Cash,
restricted cash and time deposits |
60,016 |
|
65,098 |
Other
current assets |
19,070 |
|
16,342 |
Vessels,
net |
942,876 |
|
950,282 |
Advances
for vessels and vessel upgrades |
3,653 |
|
4,023 |
Restricted cash non-current |
8,651 |
|
8,001 |
Other
non-current assets |
831 |
|
907 |
Total assets |
1,035,097 |
|
1,044,653 |
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Other
current liabilities |
11,345 |
|
16,577 |
Current
portion of long-term debt, net |
25,588 |
|
71,239 |
Long-term
debt, net |
541,816 |
|
488,708 |
Mezzanine
equity |
- |
|
16,905 |
Shareholders’ equity |
456,348 |
|
451,224 |
Total liabilities and equity |
1,035,097 |
|
1,044,653 |
|
|
|
|
TABLE 1RECONCILIATION OF
ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS/(LOSS) PER SHARE
|
Three-Months Period Ended June
30, |
Six-Months Period Ended June
30, |
(In thousands of U.S.
Dollars except for share and per share data) |
2017 |
2018 |
2017 |
2018 |
Net
(Loss)/Income - Adjusted Net (Loss)/Income |
|
|
|
|
Net
(loss)/Income |
(1,596 |
) |
4,114 |
(4,850 |
) |
10,068 |
|
Plus Loss on sale of
assets |
- |
|
- |
120 |
|
- |
|
Plus Loss/(gain) on
derivatives |
46 |
|
6 |
(55 |
) |
(11 |
) |
Plus Foreign currency
(gain)/loss |
(789 |
) |
618 |
(984 |
) |
370 |
|
Early Redelivery
cost |
- |
|
70 |
85 |
|
70 |
|
Other Operating
expense |
- |
|
- |
390 |
|
- |
|
Adjusted Net
(loss)/income |
(2,339 |
) |
4,808 |
(5,294 |
) |
10,497 |
|
|
|
|
|
|
EBITDA -
Adjusted EBITDA |
|
|
|
|
Net
(loss)/income |
(1,596 |
) |
4,114 |
(4,850 |
) |
10,068 |
|
Plus Net Interest
expense |
5,636 |
|
6,270 |
11,201 |
|
11,842 |
|
Plus Depreciation |
12,831 |
|
11,785 |
25,471 |
|
23,386 |
|
Plus Amortization |
108 |
|
227 |
507 |
|
569 |
|
EBITDA |
16,979 |
|
22,396 |
32,329 |
|
45,865 |
|
Plus Loss on sale of
assets |
- |
|
- |
120 |
|
- |
|
Early Redelivery
cost |
- |
|
70 |
85 |
|
70 |
|
Other Operating
expense |
- |
|
- |
390 |
|
- |
|
Plus Loss/(gain) on
derivatives |
46 |
|
6 |
(55 |
) |
(11 |
) |
Plus Foreign currency
(gain)/loss |
(789 |
) |
618 |
(984 |
) |
370 |
|
ADJUSTED
EBITDA |
16,236 |
|
23,090 |
31,885 |
|
46,294 |
|
|
|
|
|
|
(Loss)/Earnings
per share |
|
|
|
|
Net
(loss)/income |
(1,596 |
) |
4,114 |
(4,850 |
) |
10,068 |
|
Less Preferred
dividend |
2,942 |
|
2,780 |
6,435 |
|
5,637 |
|
Less Preferred deemed
dividend |
2,146 |
|
- |
2,146 |
|
- |
|
Net (loss)/income
available to common shareholders |
(6,684 |
) |
1,334 |
(13,431 |
) |
4,431 |
|
Weighted average number
of shares |
101,363,578 |
|
101,549,872 |
100,329,624 |
|
101,545,325 |
|
(Loss)/Earnings
per share |
(0.07 |
) |
0.01 |
(0.13 |
) |
0.04 |
|
|
|
|
|
|
Adjusted
(Loss)/Earnings per share |
|
|
|
|
Adjusted Net
(loss)/Income |
(2,339 |
) |
4,808 |
(5,294 |
) |
10,497 |
|
Less Preferred
dividend |
2,942 |
|
2,780 |
6,435 |
|
5,637 |
|
Less Deemed
dividend |
2,146 |
|
- |
2,146 |
|
- |
|
Adjusted Net
(loss)/income available to common shareholders |
(7,427 |
) |
2,028 |
(13,875 |
) |
4,860 |
|
Weighted average number
of shares |
101,363,578 |
|
101,549,872 |
100,329,624 |
|
101,545,325 |
|
Adjusted
(Loss)/Earnings per share |
(0.07 |
) |
0.02 |
(0.14 |
) |
0.05 |
|
|
|
|
|
|
|
|
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP. - EBITDA represents Net
income/(loss) before interest, income tax expense, depreciation and
amortization. - Adjusted EBITDA represents EBITDA before loss on
sale of assets, gain/(loss) on derivatives, early redelivery cost,
other operating expense and gain/(loss) on foreign currency. -
Adjusted Net income/(loss) represents Net income/(loss) before loss
on sale of assets, gain/(loss) on derivatives, early redelivery
cost, other operating expense 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,
early redelivery cost, other operating expense 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, early redelivery cost, other
operating expense 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-Months Period Ended June 30, |
|
Six-Months Period Ended June 30, |
|
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
Number of vessels at
period’s end |
|
38 |
|
40 |
|
38 |
|
40 |
Average age of fleet
(in years) |
|
7.00 |
|
7.81 |
|
7.00 |
|
7.81 |
Ownership days (1) |
|
3,458 |
|
3,566 |
|
6,862 |
|
7,076 |
Available days (2) |
|
3,407 |
|
3,419 |
|
6,792 |
|
6,919 |
Operating days (3) |
|
3,370 |
|
3,381 |
|
6,703 |
|
6,805 |
Fleet utilization
(4) |
|
97.5% |
|
94.8% |
|
97.7% |
|
96.2% |
Average number of
vessels in the period (5) |
|
38.00 |
|
39.19 |
|
37.91 |
|
39,09 |
|
|
|
|
|
|
|
|
|
AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
|
Time charter equivalent
rate (6) |
|
$9,978 |
|
$13,225 |
|
$9,698 |
|
$12,605 |
Daily vessel operating
expenses (7) |
|
$3,893 |
|
$4,809 |
|
$3,746 |
|
$4,473 |
Daily general and
administrative expenses (8) |
|
$1,157 |
|
$1,280 |
|
$1,157 |
|
$1,232 |
|
|
|
|
|
|
|
|
|
_____________
(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 Manager 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 1934, as amended, and in Section 21E of the Securities Act
of 1933, as amended) concerning future events, the Company’s growth
strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters. Words such as “expects,” “intends,” “plans,” “believes,”
“anticipates,” “hopes,” “estimates” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of the Company. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, changes in
the demand for drybulk vessels, competitive factors in the market
in which the Company operates, risks associated with operations
outside the United States and other factors listed from time to
time in the Company’s filings with the Securities and Exchange
Commission. The Company expressly disclaims any obligations or
undertaking to release any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
For further information please
contact:
Company Contact:Dr. Loukas
BarmparisPresident Safe Bulkers, Inc.Tel.: +30 21 11888400
+357 25
887200E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail: safebulkers@capitallink.com
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