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 nine months
period ended September 30, 2018.
Summary of Third Quarter 2018
Results
- Net revenues for the third quarter of 2018 increased by 34% to
$50.1 million from $37.3 million during the same period in
2017.
- Net income for the third quarter of 2018 increased by 21% to
$8.1 million from $6.7 million, during the same period in 2017.
Adjusted net income1 for the third quarter of 2018 was $8.2 million
as compared to adjusted net loss of $1.8 million, during the same
period in 2017.
- EBITDA2 for the third quarter of 2018 was $27.5 million as
compared to $27.4 million during the same period in 2017. Adjusted
EBITDA3 for the third quarter of 2018 increased by 47% to $27.7
million from $18.9 million during the same period in 2017.
- Earnings per share and Adjusted earnings per share4 for the
third quarter of 2018 were $0.05 and $0.05 respectively, calculated
on a weighted average number of 101,559,492 shares, compared to
Earnings per share of $0.04 and Adjusted loss per share of $0.05
during the same period in 2017, calculated on a weighted average
number of 101,521,234 shares.
Summary of Nine-Months Ended September
30, 2018 Results
- Net revenues for the nine months of 2018 increased by 33% to
$140.6 million from $105.7 million during the same period in
2017.
- Net income for the nine months of 2018 increased to $18.1
million from $1.9 million, during the same period in 2017. Adjusted
net income for the nine months of 2018 was $18.7 million as
compared to adjusted net loss of $7.1 million, during the same
period in 2017.
- EBITDA for the nine months of 2018 increased by 23% to $73.4
million as compared to $59.8 million during the same period in
2017. Adjusted EBITDA for the nine months of 2018 increased by 45%
to $73.9 million as compared to $50.8 million during the same
period in 2017.
- Earnings per share and Adjusted earnings per share for the nine
months of 2018 were $0.09 and $0.10, respectively, calculated on a
weighted average number of 101,550,099 shares, as compared to Loss
per share and Adjusted Loss per share of $0.10 and $0.19
respectively, during the same period in 2017, calculated on a
weighted average number of 100,731,192 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 Adjusted
Earnings/(loss) per share is a non-GAAP measure and represents
Adjusted Net income/(loss) less preferred dividend and preferred
deemed dividend divided by the weighted average number of shares.
See Table 1.
Fleet and Employment
Profile
In August 2018, the Company acquired a second
hand, Japanese, 181,400 dwt, Capesize class dry-bulk vessel the
Mount Troodos, built in 2009, at what we consider an attractive
price. The acquisition was financed from cash on hand and
subsequent to quarter end with a new loan facility (see section
‘Update on credit facilities’). Following delivery the vessel was
placed into dry docking upon completion of which in early October,
the vessel commenced spot employment at a gross daily charter rate
of $18,000.
As of October 31, 2018, our operational
fleet comprised of 41 drybulk vessels, 11 of which eco-design, with
an average age of 8.2 years and an aggregate carrying capacity of
3.8 million dwt. Our fleet consists of 14 Panamax class vessels, 10
Kamsarmax class vessels, 13 post- Panamax class vessels and 4
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 October 31,
2018:
Vessel Name |
DWT |
Year Built |
Country of construction |
Gross Charter Rate [USD/day]1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
$13,000 |
August 2018 |
December 2018 |
Koulitsa |
76,900 |
2003 |
Japan |
$15,250 |
September 2018 |
December 2018 |
Paraskevi |
74,300 |
2003 |
Japan |
$13,000 |
August 2018 |
November 2018 |
Vassos |
76,000 |
2004 |
Japan |
$13,550 |
October 2018 |
February 2019 |
Katerina |
76,000 |
2004 |
Japan |
$9,000 |
May 2018 |
April 2019 |
Maritsa |
76,000 |
2005 |
Japan |
$10,100 |
September 2017 |
November 2018 |
Efrossini |
75,000 |
2012 |
Japan |
|
|
|
Zoe |
75,000 |
2013 |
Japan |
$8,200 |
November 2017 |
February 2019 |
Kypros Land |
77,100 |
2014 |
Japan |
$14,850 |
October 2018 |
November 2018 |
Kypros Sea |
77,100 |
2014 |
Japan |
$13,900 |
August 2018 |
February 2019 |
Kypros Bravery |
78,000 |
2015 |
Japan |
$14,200 |
September 2018 |
May 2019 |
Kypros Sky |
77,100 |
2015 |
Japan |
$16,550 |
October 2018 |
January 2019 |
Kypros Loyalty |
78,000 |
2015 |
Japan |
$12,850 |
January 2018 |
March 2019 |
Kypros Spirit |
78,000 |
2016 |
Japan |
$14,000 |
June 2018 |
November 2018 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
$14,500 |
April 2018 |
May 2019 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
$14,125 |
September 2018 |
January 2019 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
$12,500 |
August 2018 |
November 2018 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
$14,150 |
June 2018 |
July 2019 |
Pedhoulas Builder |
81,600 |
2012 |
China |
$9,900 |
June 2018 |
August 2019 |
Pedhoulas Fighter |
81,600 |
2012 |
China |
$13,000 |
July 2018 |
January 2019 |
Pedhoulas Farmer 3 |
81,600 |
2012 |
China |
$15,300 |
September 2018 |
December 2018 |
Pedhoulas Cherry |
82,000 |
2015 |
China |
$15,250 |
November 2018 |
January 2019 |
Pedhoulas Rose 3 |
82,000 |
2017 |
China |
$10,000 |
March 2018 |
May 2019 |
Pedhoulas Cedrus |
81,800 |
2018 |
Japan |
$15,500 |
June 2018 |
July 2019 |
Post-Panamax |
Marina |
87,000 |
2006 |
Japan |
$15,000$14,500 |
October 2018November 2018 |
November 2018July 2019 |
Xenia |
87,000 |
2006 |
Japan |
$12,500 |
June 2018 |
November 2019 |
Sophia |
87,000 |
2007 |
Japan |
$7,250 |
April 2016 |
November 2018 |
Eleni |
87,000 |
2008 |
Japan |
$15,833$14,950 |
October 2018December 2018 |
November 2018June 2019 |
Martine |
87,000 |
2009 |
Japan |
$16,900 |
October 2018 |
November 2018 |
Andreas K |
92,000 |
2009 |
South Korea |
$13,400 |
September 2018 |
November 2018 |
Panayiota K |
92,000 |
2010 |
South Korea |
$13,750 |
August 2018 |
May 2019 |
Agios Spyridonas |
92,000 |
2010 |
South Korea |
$13,150 |
September 2018 |
December 2018 |
Venus Heritage |
95,800 |
2010 |
Japan |
$13,200 |
November 2017 |
August 2019 |
Venus History |
95,800 |
2011 |
Japan |
$14,750 |
January 2018 |
June 2019 |
Venus Horizon |
95,800 |
2012 |
Japan |
$13,950 |
January 2018 |
March 2019 |
Troodos Sun |
85,000 |
2016 |
Japan |
$15,950 |
March 2018 |
June 2019 |
Troodos Air |
85,000 |
2016 |
Japan |
$12,500 |
May 2018 |
September 2019 |
Capesize |
Mount Troodos |
181,400 |
2009 |
Japan |
$18,000 |
October 2018 |
November 2018 |
Kanaris |
178,100 |
2010 |
China |
$25,928 |
September 2011 |
June 2031 |
Pelopidas |
176,000 |
2011 |
China |
$38,000 |
January 2012 |
January 2022 |
Lake Despina |
181,400 |
2014 |
Japan |
$24,376⁴ |
January 2014 |
January 2024 |
Total dwt of existing fleet |
3,777,000 |
|
1. 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. 2. The
start date represents either the actual start date or, in the case
of a contracted charter that had not commenced as of
October 31, 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.3. 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.4. 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. 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 October 31, 2018 was:
2018 (remaining) |
79 |
% |
2018 (full year) |
96 |
% |
2019 |
28 |
% |
2020 |
7 |
% |
Liquidity
As of October 31, 2018, we had liquidity of
$64.0 million consisting of $55.4 million in cash and bank time
deposits, $8.6 million in restricted cash. In addition, as of
today, we have $36.3 million of incremental borrowing capacity
under offer letters which are subject to completion of loan
documentation.
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
consummated in August 2018, and the Company financed the
acquisition of the vessel through cash on hand. Following the
exercise of the purchase option, related deferred finance costs of
$0.5 million were written off. This was the third purchase option
the Company has exercised out of five sale and lease back
arrangements previously entered into by the Company.
Update on Dry-docking schedule, Ballast Water Treatment
System and Scrubbers installation
As of September 30, 2018, the Company has
installed Ballast Water Treatment System (“BWTS”) in four vessels.
We expect to install BWTS in four additional vessels during their
scheduled dry-dockings within the 4th quarter 2018. The aggregate
down time of these dry-dockings is expected to be approximately 90
days out of expected 3,772 ownership days this quarter.
We have scheduled to install BWTS in one vessel
within the first quarter of 2019 and BWTS and Scrubbers in four
vessels during the second quarter of 2019, concurrently with
scheduled dry-dockings. The anticipated aggregate down time is
approximately 20 days for the 1st quarter 2019 and 140 days for the
second quarter 2019. All contracted BWTS are International Maritime
Organization (“IMO”) and United States Coast Guard (“USCG “)
compliant.
Update on credit facilities
In October 2018, the Company signed an amendment
to an existing loan facility of $32.0 million initially intended
for two vessels, upsizing it to a total of $52.4 million expiring
in 2023: i) substituting one vessel by the recently acquired
Capesize class vessel and ii) refinancing the existing facility for
two other vessels. As a result the new facility will be secured by
four vessels, and the balloon payments for the refinanced two
vessels will be pushed back by one year from 2022 to 2023.
In addition, subsequent to September 30, 2018,
the Company has accepted offer letters, which are subject to
completion of loan documentation, to refinance certain loan and
credit facilities as described below:
The Company agreed to amend an existing loan
facility of $90.7 million expiring in 2021 secured by 6 vessels by
extending the tenor by 3 years, and pushing back balloon payments
to 2024.
The Company agreed to amend and expand existing
loan facilities of $71.3 million expiring in 2022 secured by 5
vessels to a total of $101.3 million secured by 6 vessels,
extending the tenor of the initial facilities by two years, and
pushing back balloon payments to 2024.
The Company agreed to refinance an amount of
$47.8 million being part of an existing loan facility expiring in
2022 secured by 4 vessels by extending the tenor by 2 years and
pushing back balloon payments to 2024.
The Company agreed to refinance a $50.6 million
loan facility secured by 4 vessels, downsizing it to $40.0 million
secured by three vessels and extending the tenor by three years and
pushing back balloon payments to 2025. Two of the encumbered
vessels under the original agreement were released and refinanced
by the loan facility of $52.4 million and one unencumbered vessel
was added.
As a result of the above actions, we pushed back
$132.4 million balloon payments scheduled in 2021 and 2022 to 2023
and 2025, expanding the average tenor, creating a smoother
repayment schedule for the following 5 years, reducing the average
margin and maintaining the same covenants of our debt, while as of
September 30, 2018, our consolidated leverage6, representing total
consolidated liabilities divided by total consolidated assets, was
55%.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the third quarter of 2018. The Company
had 101,564,700 shares of common stock issued and outstanding as of
October 31, 2018.
The Company declared in October 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 July 30, 2018 to October 29,
2018 payable on October 30, 2018 to the respective shareholders of
record as of October 22, 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 last quarter, we worked extensively in refinancing a
large part of our debt maturing in 2021 and 2022 and smoothening
the debt profile for the following 5 years, in reducing our
break-even point by buying back one more vessel under a sale and
lease back agreement, in expanding our fleet by one cape size
vessel and in progressing environmental investments including
scrubbers and ballast water treatment systems. Our investment in
scrubbers for half of our fleet is designed so that we will be
aligned timely with the IMO 2020 SOx emissions regulation, being in
the forefront of technological developments and offering to our
charterers reliable solutions from first class manufacturers ahead
of the competition”.
6 Consolidated leverage is a non-GAAP measure and represents
total consolidated liabilities divided by total consolidated
assets. Total consolidated assets are based on the market value of
all vessels (before BWTS and scrubber installation), owned or
leased on a finance lease taking into account their employment, and
the book value of all other assets.
Conference Call
On Thursday, November 8, 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
(877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll
Free Dial In) or +44 (0) 2071 928592 (Standard International Dial
In). Please quote “Safe Bulkers” to the operator.
A telephonic replay of the conference call will
be available until November 15, 2018, by dialing 1(866) 331-1332
(US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or
+44 (0) 3333 009785 (Standard International Dial In). Access Code:
1859591#
Slides and Audio Webcast
There will also be a live, and then archived,
webcast of the conference call, available through the Company’s
website (www.safebulkers.com). Participants in the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
Management Discussion of Third Quarter
2018 Results
Net income for the third quarter of 2018
increased to $8.1 million compared to net income of $6.7 million
during the same period in 2017, mainly due to the following
factors:
Net revenues: Net revenues increased by 34% to
$50.1 million for the third quarter of 2018, compared to $37.3
million for the same period in 2017, mainly as a result of
improvement in charter rates and to a lesser extent to an increase
in the average number of vessels. The Company operated 40.43
vessels on average during the third quarter of 2018, earning a Time
Charter Equivalent (“TCE”) rate, representing charter revenues net
of commissions and voyage expenses divided by the number of
available days, of $13,265, compared to 38.00 vessels and a TCE
rate of $10,419 during the same period in 2017.
Vessel operating expenses: Vessel operating
expenses increased by 15% to $15.4 million for the third quarter of
2018 compared to $13.4 million for the same period in 2017, mainly
as a result of: i) 6% increase in average number
of vessels to 40.43 vessels for the third quarter of 2018, compared
to 38.00 vessels for the same period in 2017, ii) dry docking
expense related to two dry-dockings of $0.3 million for the third
quarter of 2018, compared to zero for the same period in 2017 ,
iii) pre-delivery expenses related to the Mount Troodos
acquisition of $0.2 million for the third quarter of 2018, compared
to zero for the same period in 2017 and iv) increased
maintenance, general stores, and spares.
The Company expenses dry-docking and
pre-delivery costs as incurred, which costs may vary from period to
period. Vessel operating expenses excluding vessel dry-docking and
pre-delivery costs increased by 11% to $14.9 million for the third
quarter of 2018, compared to $13.4 million for the same period in
2017. Dry-docking expense is related to the number of dry-dockings
in each period and pre-delivery to the number of vessel deliveries
and second hand acquisitions in each period. Certain other shipping
companies may defer and amortize dry-docking expense.
Depreciation: Depreciation decreased by 6% to
$12.2 million for the third quarter of 2018, compared to $13.0
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
third quarter of 2018.
Other finance income/(cost): Other finance cost
decreased to $0.1 million for the third quarter of 2018, compared
to other finance income $8.1 million for the same period in 2017.
Other finance income in the third quarter of 2017 was as a result
of a discount settlement agreement entered into by the Company with
a lender which resulted in a net gain on debt extinguishment of
$8.2 million, recognized in September 2017.
Interest expense: Interest expense increased to
$6.8 million in the third quarter of 2018 compared to $6.1 million
for the same period in 2017, as a result of the increased USD
LIBOR7 affecting the weighted average interest rate of our loans
and credit facilities, despite the decrease in our average
indebtedness.
Voyage expenses: Voyage expenses increased to
$1.6 million for the third quarter of 2018 compared to $0.9 million
for the same period in 2017, mainly as a result of increased vessel
repositioning expenses in relation to dry-docking.
Daily vessel operating expenses8: Daily vessel
operating expenses increased by 8% to $4,151 for the third quarter
of 2018 compared to $3,830 for the same period in 2017 due to the
increase of vessel operating expenses discussed above. Daily vessel
operating expenses excluding dry-docking and pre-delivery expenses
increased by 5% to $4,022 for the third quarter of 2018 compared to
$3,830 for the same period in 2017.
Daily general and administrative expenses8:
Daily general and administrative expenses, which include management
fees payable to our Managers9, increased by 23% to $1,425 for the
third quarter of 2018, compared to $1,163 for the same period in
2017 mainly due to increased management fees charged by our
Managers.
7 London interbank offered rate.8 See Table 2.9
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
September 30, |
|
Nine-Months Period Ended
September 30, |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
REVENUES: |
|
|
|
|
|
|
|
Revenues |
38,845 |
|
|
52,212 |
|
|
109,939 |
|
|
146,602 |
|
Commissions |
(1,528 |
) |
|
(2,114 |
) |
|
(4,285 |
) |
|
(5,984 |
) |
Net revenues |
37,317 |
|
|
50,098 |
|
|
105,654 |
|
|
140,618 |
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
(893 |
) |
|
(1,613 |
) |
|
(3,359 |
) |
|
(4,920 |
) |
Vessel operating expenses |
(13,391 |
) |
|
(15,442 |
) |
|
(39,095 |
) |
|
(47,094 |
) |
Depreciation |
(12,972 |
) |
|
(12,164 |
) |
|
(38,443 |
) |
|
(35,549 |
) |
General and administrative expenses |
(4,067 |
) |
|
(5,300 |
) |
|
(12,004 |
) |
|
(14,021 |
) |
Loss on sale of assets |
— |
|
|
— |
|
|
(120 |
) |
|
— |
|
Other operating expense |
— |
|
|
— |
|
|
(390 |
) |
|
— |
|
Early redelivery cost |
(182 |
) |
|
(35 |
) |
|
(267 |
) |
|
(105 |
) |
Operating income |
5,812 |
|
|
15,544 |
|
|
11,976 |
|
|
38,929 |
|
OTHER (EXPENSE) / INCOME: |
|
|
|
|
|
|
|
Interest expense |
(6,072 |
) |
|
(6,759 |
) |
|
(17,666 |
) |
|
(19,033 |
) |
Other finance income/(costs) |
8,099 |
|
|
(90 |
) |
|
7,754 |
|
|
(636 |
) |
Interest income |
213 |
|
|
261 |
|
|
606 |
|
|
693 |
|
(Loss)/gain on derivatives |
(4 |
) |
|
8 |
|
|
51 |
|
|
18 |
|
Foreign
currency gain/(loss) |
561 |
|
|
(87 |
) |
|
1,545 |
|
|
(457 |
) |
Amortization and write-off of deferred finance charges |
(1,878 |
) |
|
(798 |
) |
|
(2,385 |
) |
|
(1,367 |
) |
Net income |
6,731 |
|
|
8,079 |
|
|
1,881 |
|
|
18,147 |
|
Less
Preferred dividend |
2,940 |
|
|
2,874 |
|
|
9,375 |
|
|
8,511 |
|
Less
Preferred deemed dividend |
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Net
income/(loss) available to common shareholders |
3,791 |
|
|
5,205 |
|
|
(9,640 |
) |
|
9,636 |
|
Earnings/(Loss) per share basic and diluted |
0.04 |
|
|
0.05 |
|
|
(0.10 |
) |
|
0.09 |
|
Weighted average number of shares |
101,521,234 |
|
|
101,559,492 |
|
|
100,731,192 |
|
|
101,550,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Months Period Ended
September 30, |
|
|
2017 |
|
2018 |
(In millions of U.S. Dollars) |
|
|
|
|
CASH FLOW DATA |
|
|
|
|
Net cash provided by operating activities |
|
35.4 |
|
|
58.8 |
|
Net cash used in investing activities |
|
(21.1 |
) |
|
(33.3 |
) |
Net cash used in financing activities |
|
(42.0 |
) |
|
(35.0 |
) |
Net decrease in cash and cash equivalents |
|
(27.7 |
) |
|
(9.5 |
) |
|
|
|
|
|
|
|
|
SAFE BULKERS,
INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(In thousands of U.S.
Dollars) |
|
|
|
December 31,
2017 |
|
September 30,
2018 |
ASSETS |
|
|
|
|
Cash,
time deposits, and restricted cash |
|
60,016 |
|
|
41,934 |
|
Other
current assets |
|
19,070 |
|
|
17,444 |
|
Vessels,
net |
|
942,876 |
|
|
965,665 |
|
Advances
for vessels under construction and vessels upgrades |
|
3,653 |
|
|
5,026 |
|
Restricted cash non-current |
|
8,651 |
|
|
8,251 |
|
Other non-current assets |
|
831 |
|
|
807 |
|
Total assets |
|
1,035,097 |
|
|
1,039,127 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current
portion of long-term debt |
|
25,588 |
|
|
65,304 |
|
Other
current liabilities |
|
11,345 |
|
|
13,654 |
|
Long-term
debt, net of current portion |
|
541,816 |
|
|
486,711 |
|
Mezzanine
equity |
|
— |
|
|
16,998 |
|
Shareholders’ equity |
|
456,348 |
|
|
456,460 |
|
Total liabilities and equity |
|
1,035,097 |
|
|
1,039,127 |
|
|
|
|
|
|
|
|
TABLE 1 |
RECONCILIATION OF
ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS/(LOSS) PER SHARE |
|
|
|
Three-Months Period Ended
September 30, |
|
Nine-Months Period Ended
September 30, |
(In thousands of U.S. Dollars except for share and per share
data) |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
Net Income - Adjusted Net (Loss)/Income |
|
|
|
|
|
|
|
|
Net Income |
|
6,731 |
|
|
8,079 |
|
|
1,881 |
|
|
18,147 |
|
Plus Loss on sale of assets |
|
— |
|
|
— |
|
|
120 |
|
|
— |
|
Plus Early redelivery cost |
|
182 |
|
|
35 |
|
|
267 |
|
|
105 |
|
Plus Other operating expense |
|
— |
|
|
— |
|
|
390 |
|
|
— |
|
Plus Loss/(gain) on derivatives |
|
4 |
|
|
(8 |
) |
|
(51 |
) |
|
(18 |
) |
Plus Foreign currency (gain)/loss |
|
(561 |
) |
|
87 |
|
|
(1,545 |
) |
|
457 |
|
Less Gain on debt extinguishment |
|
(8,189 |
) |
|
— |
|
|
(8,189 |
) |
|
— |
|
Adjusted Net (loss)/income |
|
(1,833 |
) |
|
8,193 |
|
|
(7,127 |
) |
|
18,691 |
|
EBITDA - Adjusted EBITDA |
|
|
|
|
|
|
|
|
Net Income |
|
6,731 |
|
|
8,079 |
|
|
1,881 |
|
|
18,147 |
|
Plus Net Interest expense |
|
5,859 |
|
|
6,498 |
|
|
17,060 |
|
|
18,340 |
|
Plus Depreciation |
|
12,972 |
|
|
12,164 |
|
|
38,443 |
|
|
35,549 |
|
Plus Amortization |
|
1,878 |
|
|
798 |
|
|
2,385 |
|
|
1,367 |
|
EBITDA |
|
27,440 |
|
|
27,539 |
|
|
59,769 |
|
|
73,403 |
|
Plus Loss on sale of assets |
|
— |
|
|
— |
|
|
120 |
|
|
— |
|
Plus Early redelivery cost |
|
182 |
|
|
35 |
|
|
267 |
|
|
105 |
|
Plus Other operating expense |
|
— |
|
|
— |
|
|
390 |
|
|
— |
|
Plus Loss/(gain) on derivatives |
|
4 |
|
|
(8 |
) |
|
(51 |
) |
|
(18 |
) |
Plus Foreign currency (gain)/loss |
|
(561 |
) |
|
87 |
|
|
(1,545 |
) |
|
457 |
|
Less Gain on debt extinguishment |
|
(8,189 |
) |
|
— |
|
|
(8,189 |
) |
|
— |
|
ADJUSTED EBITDA |
|
18,876 |
|
|
27,653 |
|
|
50,761 |
|
|
73,947 |
|
Earnings/(Loss) per
share |
|
|
|
|
|
|
|
|
Net Income |
|
6,731 |
|
|
8,079 |
|
|
1,881 |
|
|
18,147 |
|
Less Preferred dividend |
|
2,940 |
|
|
2,874 |
|
|
9,375 |
|
|
8,511 |
|
Less Preferred deemed dividend |
|
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Net income/(loss) available to common shareholders |
|
3,791 |
|
|
5,205 |
|
|
(9,640 |
) |
|
9,636 |
|
Weighted average number of shares |
|
101,521,234 |
|
|
101,559,492 |
|
|
100,731,192 |
|
|
101,550,099 |
|
Earnings/(Loss) per share |
|
0.04 |
|
|
0.05 |
|
|
(0.10 |
) |
|
0.09 |
|
Adjusted (Loss)/Earnings per share |
|
|
|
|
|
|
|
|
Adjusted Net (Loss)/Income |
|
(1,833 |
) |
|
8,193 |
|
|
(7,127 |
) |
|
18,691 |
|
Less Preferred dividend |
|
2,940 |
|
|
2,874 |
|
|
9,375 |
|
|
8,511 |
|
Less Preferred deemed dividend |
|
— |
|
|
— |
|
|
2,146 |
|
|
— |
|
Adjusted Net (loss)/income available to common shareholders |
|
(4,773 |
) |
|
5,319 |
|
|
(18,648 |
) |
|
10,180 |
|
Weighted average number of shares |
|
101,521,234 |
|
|
101,559,492 |
|
|
100,731,192 |
|
|
101,550,099 |
|
Adjusted (Loss)/Earnings per share |
|
(0.05 |
) |
|
0.05 |
|
|
(0.19 |
) |
|
0.10 |
|
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 September 30, |
|
Nine-Months Period
Ended September 30, |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at period’s end |
38 |
|
|
41 |
|
|
38 |
|
|
41 |
|
Average age of fleet (in years) |
7.25 |
|
|
8.08 |
|
|
7.25 |
|
|
8.08 |
|
Ownership days (1) |
3,496 |
|
|
3,720 |
|
|
10,358 |
|
|
10,796 |
|
Available days (2) |
3,496 |
|
|
3,655 |
|
|
10,288 |
|
|
10,574 |
|
Operating days (3) |
3,478 |
|
|
3,628 |
|
|
10,181 |
|
|
10,433 |
|
Fleet utilization (4) |
99.5 |
% |
|
97.5 |
% |
|
98.3 |
% |
|
96.6 |
% |
Average number of vessels in the period (5) |
38.00 |
|
|
40.43 |
|
|
37.94 |
|
|
39.55 |
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
|
|
Time charter equivalent rate (6) |
$ |
10,419 |
|
|
$ |
13,265 |
|
|
$ |
9,943 |
|
|
$ |
12,833 |
|
Daily vessel operating expenses (7) |
$ |
3,830 |
|
|
$ |
4,151 |
|
|
$ |
3,774 |
|
|
$ |
4,362 |
|
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses (8) |
$ |
3,830 |
|
|
$ |
4,022 |
|
|
$ |
3,679 |
|
|
$ |
4,152 |
|
Daily general and administrative expenses (9) |
$ |
1,163 |
|
|
$ |
1,425 |
|
|
$ |
1,159 |
|
|
$ |
1,299 |
|
_____________
(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 are calculated by dividing vessel operating
expenses for the relevant period by ownership days for such period.
Vessel operating expenses include crewing, insurance, lubricants,
spare parts, provisions, stores, repairs, maintenance including
dry-docking, statutory and classification expenses and other
miscellaneous items.(8) Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses are calculated by dividing
vessel operating expenses excluding dry-docking and pre-delivery
expenses for the relevant period by ownership days for such period.
Dry-docking expenses include costs of shipyard, paints and agent
expenses and pre-delivery expenses include initially supplied spare
parts, stores, provisions and other miscellaneous items provided to
a newbuild or second hand acquisition prior to their operation.(9)
Daily general and administrative expenses are calculated by
dividing general and administrative expenses for the relevant
period by ownership days for such period. Daily general and
administrative expenses include daily management fees payable to
our Manager and daily company administration expenses.
About Safe Bulkers, Inc.
The Company is an international provider of
marine drybulk transportation services, transporting bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes for some of the world’s largest users of marine drybulk
transportation services. The Company’s common stock, series C
preferred stock and series D preferred stock are listed on the
NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”,
respectively.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Exchange
Act of 1934, as amended, and in Section 21E of the Securities Act
of 1933, as amended) concerning future events, the Company’s growth
strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters. Words such as “expects,” “intends,” “plans,” “believes,”
“anticipates,” “hopes,” “estimates” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of the Company. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, changes in
the demand for drybulk vessels, competitive factors in the market
in which the Company operates, risks associated with operations
outside the United States and other factors listed from time to
time in the Company’s filings with the Securities and Exchange
Commission. The Company expressly disclaims any obligations or
undertaking to release any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
For further information please
contact:
Company Contact:Dr. Loukas
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25
887200E-Mail:directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail:safebulkers@capitallink.com
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