Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq and
Oslo: SBLK), a global shipping company focusing on the
transportation of dry bulk cargoes, today announced its unaudited
financial and operating results for the first quarter ended March
31, 2019.
Financial Highlights
|
|
|
|
(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
|
|
|
First quarter 2019 |
First quarter 2018 |
|
Voyage Revenues |
$166,490 |
$121,057 |
|
Net income/(loss) |
($5,342) |
$9,900 |
|
Net cash provided by operating activities |
$12,408 |
$31,582 |
|
EBITDA (1) |
$46,424 |
$44,449 |
|
Adjusted EBITDA (1) |
$43,875 |
$46,422 |
|
Adjusted Net income / (loss) (2) |
($8,532) |
$11,859 |
|
Earnings / (loss) per share basic |
($0.06) |
$0.15 |
|
Adjusted earnings / (loss) per share basic (2) |
($0.09) |
$0.18 |
|
TCE Revenues (3) |
$98,967 |
$81,597 |
|
Daily Time Charter Equivalent Rate ("TCE") (3) |
$10,624 |
$12,586 |
|
Fleet utilization |
96.5% |
100.0% |
|
Average daily OPEX per vessel (4) |
$4,046 |
$4,052 |
|
Average daily OPEX per vessel (excl. pre-delivery expenses)
(4) |
$4,015 |
$3,991 |
|
Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (5) |
$971 |
$1,101 |
|
- EBITDA and Adjusted EBITDA are non-GAAP measures. Please see
the table at the end of this release for a reconciliation of EBITDA
and Adjusted EBITDA to Net Cash Provided by / (Used in) Operating
Activities, which is the most directly comparable financial measure
calculated and presented in accordance with generally accepted
accounting principles in the United States (“U.S. GAAP”). To derive
Adjusted EBITDA from EBITDA, we exclude non-cash gains /
(losses).
- Adjusted Net income / (loss) and Adjusted earnings / (loss) per
share basic and diluted are non-GAAP measures. Please see the table
at the end of this release for a reconciliation to Net income /
(loss), which is the most directly comparable financial measure
calculated and presented in accordance with U.S. GAAP.
- Daily Time Charter Equivalent Rate (“TCE”) and TCE Revenues are
non-GAAP measures. Please see the table at the end of this release
for a reconciliation to Voyage Revenues, which is the most directly
comparable financial measure calculated and presented in accordance
with U.S. GAAP.
- Average daily OPEX per vessel is calculated by dividing vessel
operating expenses by Ownership days.
- Average daily Net Cash G&A expenses per vessel is
calculated by (1) deducting the Management fee Income (if any),
from, and (2) adding the Management fee expense to, the
General and Administrative expenses (net of stock-based
compensation expense) and (3) then dividing the result by the
sum of Ownership days and Charter-in days. Please see the table at
the end of this release for a reconciliation to General and
administrative expenses, which is the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Petros Pappas, Chief Executive Officer
of Star Bulk, commented:
“Star Bulk announced today its first quarter
2019 financial results, reporting TCE Revenues of $99.0 million,
$43.9 million of Adjusted EBITDA and a Net Loss of $5.3 million
during a challenging and seasonally weak period of the year, which
included approximately 300 off-hire days for scrubber
installations. By the end of May 2019 we are on track to have 40
vessels scrubber fitted. We expect to have a fully scrubber
fitted fleet by January 2020. Because we expect 2020 to be a more
profitable year, we want to maximize the operating days in 2020 and
we thus bring forward to 2019 all our drydocks that would otherwise
be due in 2020. We expect to undergo 52 drydocks during this year
mostly concurrent with scrubber installations which, in combination
with 50 at sea installations, will reduce as much as possible our
off hire time during 2019.
"Our average TCE for the quarter, including
realized freight and bunker hedging, was $11,192 / day per vessel
with 96.5% fleet utilization, and average daily Opex and Net Cash
G&A expenses per vessel, at $4,015/day and $971/day
respectively. As of today, we have fixed a minimum of 76% of our Q2
2019 days at average TCE rates of $10,006 per day.
"We continue being busy on the financing front,
having drawn and agreed to refinance approximately $329 million of
debt since the beginning of the year, reducing our average margin
in these facilities by 217bps. Over the past nine months, we have
agreed to refinance approximately $1.04 billion creating savings of
about $10 million annually in interest expense, or $250 per vessel
day. We have also drawn $22.4 million of scrubber financing
with another $112.2 million in place to be drawn later in the
year.”
Recent Developments
FLEET UPDATE
- In April 2019, entities affiliated with E.R. Capital Holding
GmbH & Cie. KG (“E.R.” or “Sellers”) and ourselves
mutually waived our respective Put and Call Options relating to the
four (4) optional dry bulk vessels (the “Step 2 Vessels”) (the
“Step 2 Acquisition”), as previously disclosed in the press release
issued on August 29, 2018.
- On April 16, 2019, we took delivery of the Newcastlemax vessel
Katie K (ex- HN 1388), with carrying capacity of 206,839 deadweight
tons, built at Shanghai Waigaoqiao Shipbuilding Co., Ltd. (“SWS”).
The vessel is financed under a bareboat lease with CSSC (Hong Kong)
Shipping Company Limited (”CSSC”).
- On March 6, 2019 and March 8, 2019, we sold and delivered the
M/V Star Aurora, a 2000 built Capesize vessel, and M/V Star Kappa,
a 2001 built Supramax vessel, respectively, to their new
buyers.
DEBT FINANCING UPDATE
- On May 8, 2019, we entered into a loan agreement with Citibank
N.A., London Branch, the “Citibank $62.6 million Facility”. The
aggregate amount of $62.6 million drawn under the respective
facility, was used together with cash on hand to pay all the
outstanding amount under the lease agreements of M/V Star Virgo and
M/V Star Marisa. The Citibank $62.6 million Facility is secured by
a first priority mortgage on these two vessels and will mature in
May 2024.
- In May 2019, we finalized a loan agreement with CTBC Bank Co.,
Ltd, the “CTBC Facility”, for an amount of $35.0 million which will
be used to refinance the outstanding amount under the lease
agreement of M/V ABOY Karlie. The CTBC Facility will be secured by
first priority mortgage on the respective vessel and will mature in
May 2024.
- On March 29, 2019, we entered into an agreement to sell the
vessel Star Pisces and simultaneously entered into a bareboat
charter party contract with SK Shipholding S.A. to bareboat charter
the respective vessel for 7 years, with purchase obligation at the
expiration of the bareboat term. The amount of $19.1 million
provided under the respective sale and lease back agreement was
used to pay the outstanding amount of $11.7 million under the NIBC
facility.
- In April 2019, we drew down an amount of $11.7 million under
the Atradius Facility, which was used to finance the acquisition of
scrubber equipment. In May 2019, we drew down an amount of
$9.4 million and $1.4 million under the DNB $310.0 million Facility
and ING Facility respectively, for the same purpose. The undrawn
portion of scrubber related financing following these drawdowns
stands at $ 112.2 million.
UPDATED SHARE COUNT
During 2019, we repurchased 1,535,322 of our
common shares in open market transactions at an average price of
$7.45 for aggregate consideration of $11.4 million, pursuant to the
previously announced share repurchase program, all of which were
canceled and removed from our share capital until the date of this
release. Following the cancelation of the repurchased shares, we
have 91,750,000 common shares outstanding as of the date of this
release.
Employment update
As of today, we have fixed employment for approximately 76% of
the days in Q2 2019 at average TCE rates of $10,006 per day.
More specifically:
Capesize / Newcastlemax Vessels: approximately 69% of Q2 2019
days at $10,152 per day.
Post Panamax / Kamsarmax / Panamax Vessels: approximately 73% of
Q2 2019 days at $10,131 per day.
Ultramax / Supramax Vessels: approximately 89% of Q2 2019
days at $9,712 per day.
Amounts shown throughout the press release and variations in
period–on–period comparisons are derived from the actual numbers in
our books and records.
First Quarter 2019 and 2018
Results
Voyage revenues for the first quarter of 2019
increased to $166.5 million from $121.1 million in the first
quarter of 2018. Adjusted time charter equivalent revenues
(“Adjusted TCE Revenues”) (please see the table at the end of this
release for the calculation of the Adjusted TCE Revenues) were
$98.3 million for the first quarter of 2019, compared to $81.6
million for the first quarter of 2018. Adjusted TCE Revenues
primarily increased as a result of an increase in the average
number of vessels in our fleet to 107.3 in the first quarter of
2019, up from 72.0 in the first quarter of 2018. The TCE rate
though for the first quarter of 2019 was $10,624 compared to
$12,586 for the first quarter of 2018 reflecting the weaker dry
bulk market environment prevailing during the first quarter of 2019
compared to the same period in 2018.
For the first quarter of 2019, operating income
was $17.2 million, which includes depreciation of $29.8 million.
Operating income of $23.3 million for the first quarter of 2018
included depreciation of $21.2 million. Depreciation increased
during the first quarter of 2019 due to a higher average number of
vessels in our fleet as described above. Operating income declined
in the first quarter of 2019 as compared to the first quarter of
2018, because of higher depreciation expense, lower TCE rates as
well as the significantly higher dry-docking expense following our
management’s decision to bring forward to 2019 all the 2020
dry-docking services in order to install scrubbers and take
advantage of the low market environment.
For the first quarter of 2019 we had a net loss
of $5.3 million, or $0.06 loss per share, basic and diluted, based
on 93,080,589 weighted average basic and diluted shares. Net income
for the first quarter of 2018 was $9.9 million, or $0.15 earnings
per share, basic and diluted, based on 64,107,324 weighted average
basic shares and 64,303,356 weighted average diluted shares,
respectively.
Net loss for the first quarter of 2019, included
the following significant non-cash items, other than depreciation
expense mentioned above:
- Unrealized gain on forward freight agreements and bunker swaps
of $3.1 million or $0.03 per share, basic and diluted; and
- Amortization of the fair value of below market acquired time
charters of $0.6 million, or $0.01 per share, basic and diluted,
associated with time charters attached to two vessels acquired
during the third quarter of 2018. These below market time charters
are amortized over the duration of each respective time charter
agreement as an increase to voyage revenues.
Net income for the first quarter of 2018,
included the following significant non-cash items, other than
depreciation expense:
- Stock-based compensation expense of $1.1 million, or $0.02 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees; and
- Unrealized loss on forward freight agreements and bunker swaps
of $0.9 million, or $0.01 per share, basic and diluted.
Adjusted net loss for the first quarter of 2019,
was $8.5 million, or $0.09 loss per share, basic and diluted,
compared to adjusted net income of $11.9 million, or $0.18 earnings
per share, basic and diluted, for the first quarter of 2018. A
reconciliation of Net income/(loss) to Adjusted Net income/(loss)
and Adjusted earnings/(loss) per share basic and diluted is set
forth in the financial tables contained in this release.
Adjusted EBITDA for the first quarters of 2019
and 2018, was $43.9 million and $46.4 million, respectively. A
reconciliation of EBITDA and Adjusted EBITDA to net cash provided
by/(used in) operating activities is set forth in the financial
tables contained in this release.
For the first quarters of 2019 and 2018, vessel
operating expenses were $39.1 million and $26.3 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 107.3 from 72.0. Vessel operating
expenses for the first quarter of 2019 included pre-delivery and
pre-joining expenses of $0.3 million compared to $0.4 million in
the first quarter of 2018. Excluding these expenses, our average
daily operating expenses per vessel for the first quarter of 2019
and 2018, were $4,015 and $3,991, respectively.
During the first quarter of 2019, dry docking
expenses amounted to $9.7 million. During the respective period six
of our vessels underwent their periodic dry docking surveys,
resulting in expenses of $5.6 million and remaining $4.1 million
were incurred in connection with upcoming dry dockings. During the
first quarter of 2018, none of our vessels underwent their periodic
dry docking surveys, but we incurred expenses of $1.1 million in
connection with upcoming dry dockings.
General and administrative expenses for each of
the first quarters of 2019 and 2018 were $7.2 million and $7.3
million, respectively. Our average daily net cash general and
administrative expenses per vessel together with management fees
for the first quarter of 2019 were reduced to $971 from $1,101
during the first quarter of 2018 (please see the table at the end
of this release for the calculation of the Average daily Net Cash
G&A expenses per vessel).
Charter-in hire expense for the first quarters
of 2019 and 2018 was $22.6 million and $16.5 million, respectively.
The increase is due to charter-in days of 1,740 in the first
quarter of 2019 compared to 928 in the first quarter of 2018. In
both quarters, the charter in days are attributable to the
activities of our subsidiary Star Logistics.
Management fees for the first quarters of 2019
and 2018 were $4.1 million and $1.9 million, respectively. The
increase is attributable to the new management agreements entered
into in connection with the acquired fleets during the third
quarter of 2018.
For the first quarter of 2019 we incurred a gain
on forward freight agreements and bunker swaps of $8.3 million,
consisting of realized gain of $5.2 million and unrealized gain of
$3.1 million. For the first quarter of 2018 we incurred a loss on
forward freight agreements and bunker swaps of $0.8 million,
consisting of realized gain of $0.1 million and unrealized loss of
$0.9 million.
Interest and finance costs net of interest and
other income/ (loss) for the first quarters of 2019 and 2018 were
$21.8 million and $13.4 million, respectively. The increase is
primarily attributable to the increase in the weighted average
balance of our outstanding indebtedness of $1,462.1 million during
the first quarter of 2019 compared to $1,045.1 million for the same
period in 2018.
Liquidity and Capital ResourcesCash
FlowsNet cash provided by operating activities for
the first quarters of 2019 and 2018 was $12.4 million and $31.6
million, respectively.
The reduction was due to the weaker dry bulk
market environment prevailing during the first quarter of 2019
compared to the same period in 2018, which resulted in a relatively
lower TCE rate of $10,624 compared to $12,586 for the first quarter
of 2018. Despite the increase in the average number of vessels in
our fleet, the decrease in TCE rates as well as the increased
dry-docking activity during the first quarter of 2019, resulted in
a decrease of Adjusted EBITDA to $43.9 million for the first
quarter of 2019 from $46.4 million for the corresponding period in
2018. The respective decrease in Adjusted EBITDA was combined with
a (i) net working capital outflow of $11.0 million during the first
quarter of 2019 compared to a net working capital outflow of $1.8
million for the first quarter of 2018 and (ii) higher net interest
expense for the first quarter of 2019 compared to the corresponding
period in 2018.
Net cash used in investing activities
for the first quarters of 2019 and 2018 was $40.0 million and $71.3
million, respectively.
For the first quarter of 2019, net cash used in
investing activities mainly consisted of i) $32.3 million paid in
connection with our newbuilding and newly acquired vessels and
other capitalized expenses and ii) $31.0 million paid for the
acquisition and installation of scrubber equipment and ballast
water management systems for certain of our vessels, offset
partially by proceeds from the sale of three vessels of $20.4
million and insurance proceeds of $2.9 million.
For the first quarter 2018, net cash used in
investing activities mainly consisted of $71.3 million paid for
advances and other capitalized expenses for our newbuilding and
vessels delivered during the quarter.
Net cash used in financing activities
for the first quarter of 2019 was $26.0 million and net cash
provided by financing activities for the first quarter of 2018 was
$30.5 million.
For the first quarter of 2019, net cash provided
by financing activities mainly consisted of:
- $175.0 million of proceeds from financing including financing
from leases;
offset by:
- $194.1 million lease and debt obligations paid in aggregate in
connection with: (i) the regular amortization of outstanding vessel
financings and capital lease installments, and (ii) early repayment
due to the refinancing of certain of our lease agreements and the
sale of three of our vessels;
- $1.7 million used mainly to repurchase 195,605 of our common
shares in open market transactions;
- $4.4 million of financing fees paid in connection with the new
financing agreements; and
- $0.8 million of prepayment fees paid in connection with early
repaid debt.
For the first quarter of 2018, net cash provided
by financing activities consisted of:
- $70.0 million increase in lease obligations, relating to two
delivered newbuilding vessels, under bareboat charters;
offset partially by:
- $39.5 million paid in aggregate in connection with: (i) the
regular amortization of outstanding vessel financings and capital
lease installments and (ii) the excess cash for the quarter ended
December 31, 2017, which we paid to our lenders pursuant to the
cash sweep mechanism in our Supplemental Agreements, during the
first quarter 2018.
Summary of Selected Data
|
|
|
|
|
|
First quarter 2019 |
|
First quarter 2018 |
|
Average
number of vessels (1) |
107.3 |
|
72.0 |
|
Number
of vessels (2) |
106 |
|
73 |
|
Average
age of operational fleet (in years) (3) |
8.0 |
|
8.2 |
|
Ownership days (4) |
9,658 |
|
6,483 |
|
Available days (5) |
9,255 |
|
6,483 |
|
Charter-in days (6) |
1,740 |
|
928 |
|
Fleet
utilization (7) |
96.5% |
|
100.0% |
|
Daily
Time Charter Equivalent Rate (8) |
$10,624 |
|
$12,586 |
|
Average
daily OPEX per vessel (9) |
$4,046 |
|
$4,052 |
|
Average
daily OPEX per vessel (excl. pre-delivery expenses) |
$4,015 |
|
$3,991 |
|
Average
daily Net Cash G&A expenses per vessel (excluding one-time
expenses) (10) |
$971 |
|
$1,101 |
|
|
|
|
|
|
- Average number of vessels is the number of vessels that
constituted our owned fleet for the relevant period, as measured by
the sum of the number of days each operating vessel was a part of
our owned fleet during the period divided by the number of calendar
days in that period.
- As of the last day of the periods reported.
- Average age of operational fleet is calculated as of the end of
each period.
- Ownership days are the total calendar days each vessel in the
fleet was owned by us for the relevant period.
- Available days for the fleet are the Ownership days after
subtracting off-hire days for major repairs, dry docking or special
or intermediate surveys and scrubber installation.
- Charter-in days are the total days that we charter-in
third-party vessels.
- Fleet utilization is calculated by dividing (x) Available days
plus Charter-in days by (y) Ownership days plus charter-in days for
the relevant period.
- Represents the weighted average daily TCE rates of our
operating fleet (including owned fleet and fleet under charter-in
arrangements). TCE rate is a measure of the average daily net
revenue performance of our vessels. Our method of calculating TCE
rate is determined by dividing voyage revenues (net of voyage
expenses, charter-in hire expense, amortization of fair value of
above/below market acquired time charter agreements and provision
for onerous contracts, if any) by Available days for the relevant
time period. Available days do not include the Charter-in days as
per the relevant definitions provided above. Voyage expenses
primarily consist of port, canal and fuel costs that are unique to
a particular voyage, which would otherwise be paid by the charterer
under a time charter contract, as well as commissions. TCE rate is
a standard shipping industry performance measure used primarily to
compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e.,
voyage charters, time charters, bareboat charters and pool
arrangements) under which its vessels may be employed between the
periods. Our method of computing TCE may not necessarily be
comparable to TCE of other companies due to differences in methods
of calculation. The above reported TCE rates for the first quarter
of 2018 was calculated excluding Star Logistics. We have excluded
the revenues and expenses of Star Logistics because it was formed
in October 2017, and its revenues and expenses had not yet
normalized in that period, which obscure material trends of our TCE
rate. As a result, we believe it is more informative to our
investors to present the TCE rate excluding the revenues and
expenses of Star Logistics for that period. For the detailed
calculation please see the table at the end of this release with
the reconciliation of Voyage Revenues to TCE. We include TCE rate,
a non-GAAP measure, as it provides additional meaningful
information in conjunction with voyage revenues, the most directly
comparable GAAP measure, and it assists our management in making
decisions regarding the deployment and use of our operating vessels
and assists investors and our management in evaluating our
financial performance.
- Average daily OPEX per vessel is calculated by dividing vessel
operating expenses by Ownership days.
- Please see the table at the end of this release for the
reconciliation to General and administrative expenses, the most
directly comparable GAAP measure. We believe that Average daily Net
Cash G&A expenses per vessel is a useful measure for our
management and investors for period to period comparison with
respect to our financial performance since such measure eliminates
the effects of non-cash items which may vary from period to period,
are not part of our daily business and derive from reasons
unrelated to overall operating performance.
Unaudited Consolidated Statements of
Operations
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars except for share and per share data) |
|
First quarter 2019 |
|
|
First quarter 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
Voyage revenues |
|
$ |
166,490 |
|
|
$ |
121,057 |
|
|
Total
revenues |
|
|
166,490 |
|
|
|
121,057 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Voyage expenses |
|
|
(44,906 |
) |
|
|
(22,695 |
) |
|
Charter-in hire expense |
|
|
(22,617 |
) |
|
|
(16,470 |
) |
|
Vessel operating expenses |
|
|
(39,077 |
) |
|
|
(26,273 |
) |
|
Dry docking expenses |
|
|
(9,715 |
) |
|
|
(1,120 |
) |
|
Depreciation |
|
|
(29,825 |
) |
|
|
(21,168 |
) |
|
Management fees |
|
|
(4,089 |
) |
|
|
(1,930 |
) |
|
General and administrative
expenses |
|
|
(7,233 |
) |
|
|
(7,319 |
) |
|
Gain/(Loss) on forward freight
agreements and bunker swaps |
|
|
8,341 |
|
|
|
(812 |
) |
|
Other operational gain |
|
|
156 |
|
|
|
5 |
|
|
Gain/(Loss) on sale of
vessels |
|
|
(313 |
) |
|
|
- |
|
|
|
|
|
|
|
|
Operating
income/(loss) |
|
|
17,212 |
|
|
|
23,275 |
|
|
|
|
|
|
|
|
Interest and finance
costs |
|
|
(22,236 |
) |
|
|
(14,273 |
) |
|
Interest and other
income/(loss) |
|
|
477 |
|
|
|
893 |
|
|
Gain/(Loss) on derivative
financial instruments |
|
|
- |
|
|
|
(1 |
) |
|
Loss on debt
extinguishment |
|
|
(823 |
) |
|
|
- |
|
|
Total other expenses,
net |
|
|
(22,582 |
) |
|
|
(13,381 |
) |
|
|
|
|
|
|
|
Income/(Loss) before
equity in investee |
|
|
(5,370 |
) |
|
|
9,894 |
|
|
|
|
|
|
|
|
Equity in income/(loss) of
investee |
|
|
28 |
|
|
|
6 |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
(5,342 |
) |
|
$ |
9,900 |
|
|
|
|
|
|
|
|
Earnings/(loss) per share,
basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
0.15 |
|
|
Weighted average number of
shares outstanding, basic |
|
|
93,080,589 |
|
|
|
64,107,324 |
|
|
Weighted average number of
shares outstanding, diluted |
|
|
93,080,589 |
|
|
|
64,303,356 |
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets
|
|
(Expressed in
thousands of U.S. dollars) |
|
|
|
ASSETS |
|
March 31, 2019 |
|
December 31, 2018 |
|
Cash and cash equivalents |
|
$ |
155,322 |
|
$ |
204,921 |
|
Vessel held for sale |
|
|
- |
|
|
5,949 |
|
Other current assets |
|
|
98,199 |
|
|
87,966 |
|
TOTAL CURRENT
ASSETS |
|
|
253,521 |
|
|
298,836 |
|
|
|
|
|
|
|
Advances for vessels under
construction and acquisition of vessels |
|
|
61,621 |
|
|
59,900 |
|
Vessels and other fixed
assets, net |
|
|
2,689,016 |
|
|
2,656,108 |
|
Other non-current assets |
|
|
10,312 |
|
|
7,293 |
|
TOTAL
ASSETS |
|
$ |
3,014,470 |
|
$ |
3,022,137 |
|
|
|
|
|
|
|
Current portion of long-term
debt and finance lease commitments |
|
$ |
169,020 |
|
$ |
166,844 |
|
Other current liabilities |
|
|
63,137 |
|
|
55,873 |
|
TOTAL CURRENT
LIABILITIES |
|
|
232,157 |
|
|
222,717 |
|
|
|
|
|
|
|
Long-term debt and finance
lease commitments non-current(net of unamortized deferred finance
fees of $15,025 and $13,972, respectively) |
|
|
1,204,420 |
|
|
1,226,744 |
|
Senior Notes (net of
unamortized deferred finance fees of $1,489 and $1,590,
respectively) |
|
|
48,511 |
|
|
48,410 |
|
Other non-current
liabilities |
|
|
6,079 |
|
|
4,221 |
|
TOTAL
LIABILITIES |
|
$ |
1,491,167 |
|
$ |
1,502,092 |
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
1,523,303 |
|
|
1,520,045 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
$ |
3,014,470 |
|
$ |
3,022,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Cash Flow Data
(Expressed in thousands of U.S. dollars) |
|
First Quarter 2019 |
|
First Quarter 2018 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating activities |
|
$ |
12,408 |
|
|
$ |
31,582 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by / (used in) investing activities |
|
|
(40,034 |
) |
|
|
(71,266 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided
by / (used in) financing activities |
|
|
(26,017 |
) |
|
|
30,500 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
We include EBITDA herein since it is a basis
upon which we assess our liquidity position. It is also used by our
lenders as a measure of our compliance with certain loan covenants
and we believe that it presents useful information to investors
regarding our ability to service and/or incur indebtedness.
EBITDA does not represent and should not be
considered as an alternative to cash flow from operating activities
or net income, as determined by United States generally accepted
accounting principles, or U.S. GAAP, and our calculation of EBITDA
may not be comparable to that reported by other companies due to
differences in methods of calculation.
To derive Adjusted EBITDA from EBITDA, we
excluded non-cash gains/losses such as those related to sale of
vessels, stock-based compensation expense, the write-off of the
unamortized fair value of above/below market acquired time
charters, impairment losses, the write-off of claims receivable and
loss from bad debt, change in fair value of forward freight
agreements and bunker swaps, provision for onerous contracts, and
the equity in income/(loss) of investee, if any, which may vary
from period to period and for different companies and because these
items do not reflect operational cash inflows and outflows of our
fleet.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars) |
|
First quarter 2019 |
|
First quarter 2018 |
|
|
|
|
|
|
|
Net cash provided by/(used in) operating activities |
|
$ |
12,408 |
|
|
$ |
31,582 |
|
|
Net decrease / (increase)
in current assets |
|
|
15,346 |
|
|
|
8,778 |
|
|
Net increase / (decrease) in
operating liabilities, excluding current portion of long term
debt |
|
|
(4,428 |
) |
|
|
(7,031 |
) |
|
Loss on debt
extinguishment |
|
|
(823 |
) |
|
|
- |
|
|
Stock – based
compensation |
|
|
(251 |
) |
|
|
(1,062 |
) |
|
Amortization of deferred
finance charges |
|
|
(1,240 |
) |
|
|
(676 |
) |
|
Unrealized and accrued
gain/(loss) on derivative financial instruments |
|
|
- |
|
|
|
388 |
|
|
Unrealized gain / (loss) on
forward freight agreements and bunker swaps |
|
|
3,085 |
|
|
|
(917 |
) |
|
Total other expenses, net |
|
|
22,582 |
|
|
|
13,381 |
|
|
Gain on hull and machinery
claims |
|
|
30 |
|
|
|
- |
|
|
Gain/(Loss) on sale of
vessels |
|
|
(313 |
) |
|
|
- |
|
|
Equity in income/(loss) of
investee |
|
|
28 |
|
|
|
6 |
|
|
EBITDA |
|
$ |
46,424 |
|
|
$ |
44,449 |
|
|
|
|
|
|
|
|
Equity in (income)/loss of
investee |
|
|
(28 |
) |
|
|
(6 |
) |
|
Unrealized (gain)/loss on
forward freight agreements and bunker swaps |
|
|
(3,085 |
) |
|
|
917 |
|
|
(Gain)/Loss on sale of
vessels |
|
|
313 |
|
|
|
- |
|
|
Stock-based compensation |
|
|
251 |
|
|
|
1,062 |
|
|
Adjusted
EBITDA |
|
$ |
43,875 |
|
|
$ |
46,422 |
|
|
|
|
|
|
|
|
Net income/(Loss) and Adjusted Net
income/(Loss) Reconciliation and calculation of Adjusted
Earnings/(Loss) Per Share
To derive Adjusted Net Income and Adjusted
Earnings/(Loss) Per Share from Net Income, we excluded non-cash
items, as provided in the table below. We believe that Adjusted Net
Income and Adjusted Earnings/(Loss) Per Share assist our management
and investors by increasing the comparability of our performance
from period to period since each such measure eliminates the
effects of such non-cash items as gain/(loss) on sale of assets,
gain/(loss) on derivatives, impairment losses and other items which
may vary from year to year, for reasons unrelated to overall
operating performance. In addition we believe that the presentation
of the respective measure provides investors with supplemental data
relating to our results of operations; and therefore with a more
complete understanding of factors affecting our business than GAAP
measures alone. Our method of computing Adjusted Net Income and
Adjusted Earnings/ (Loss) Per Share may not necessarily be
comparable to other similarly titled captions of other companies
due to differences in methods of calculation. The following table
reconciles Net income / (loss) to Adjusted Net income / (loss):
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars except for share and per share data) |
|
First quarter 2019 |
|
First quarter 2018 |
|
|
|
|
|
|
|
Net income / (loss) |
|
$ |
(5,342 |
) |
|
$ |
9,900 |
|
|
Amortization of fair value of below market acquired time charter
agreements |
|
|
(641 |
) |
|
|
- |
|
|
Stock – based compensation |
|
|
251 |
|
|
|
1,062 |
|
|
Unrealized (gain) / loss on
forward freight agreements and bunker swaps |
|
|
(3,085 |
) |
|
|
917 |
|
|
Unrealized (gain) / loss on
derivative financial instruments |
|
|
- |
|
|
|
(14 |
) |
|
(Gain) / loss on sale of vessels |
|
|
313 |
|
|
|
- |
|
|
Equity in income/(loss) of investee |
|
|
(28 |
) |
|
|
(6 |
) |
|
Adjusted Net income /
(loss) |
|
$ |
(8,532 |
) |
|
$ |
11,859 |
|
|
Weighted average number of shares outstanding, basic |
|
|
93,080,589 |
|
|
|
64,107,324 |
|
|
Weighted average number of shares outstanding, diluted |
|
|
93,080,589 |
|
|
|
64,303,356 |
|
|
Adjusted Basic and
Diluted Earnings / (Loss) Per Share |
|
$ |
(0.09 |
) |
|
$ |
0.18 |
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation
|
|
|
|
|
|
(In thousands of
U.S. Dollars, except for TCE rates) |
|
|
|
|
|
|
|
|
|
|
First quarter2019 |
|
First quarter2018 |
|
|
|
|
|
|
|
Voyage revenues |
|
$ |
166,490 |
|
|
$ |
97,955 |
|
a) |
Less: |
|
|
|
|
|
Voyage expenses |
|
|
(44,906 |
) |
|
|
(16,358 |
) |
b) |
Charter-in hire expense |
|
|
(22,617 |
) |
|
|
- |
|
c) |
Time Charter
equivalent revenues |
|
$ |
98,967 |
|
|
$ |
81,597 |
|
|
Amortization of fair value of
below/above market acquired time charter agreements |
|
|
(641 |
) |
|
|
- |
|
|
Adjusted Time Charter
equivalent revenues |
|
$ |
98,326 |
|
|
$ |
81,597 |
|
|
|
|
|
|
|
|
Available days |
|
|
9,255 |
|
|
|
6,483 |
|
|
Daily Time Charter
Equivalent Rate ("TCE") |
|
$ |
10,624 |
|
|
$ |
12,586 |
|
|
|
|
|
|
|
|
- Voyage revenues used to calculate TCE rate for the first
quarter of 2018 consist of (1) reported voyage revenues of $121.1
million minus (2) voyage revenues of $23.1 million attributable to
Star Logistics.
- Voyage expenses used to calculate TCE rate for the first
quarter of 2018 consist of (1) reported voyage expenses of $22.7
million minus (2) voyage expenses of $6.3 million attributable to
Star Logistics.
- Reported Charter-in hire expense for the first quarter of 2018
of $16.5 million attributable to Star Logistics, was excluded from
the calculation of TCE rate.
Average daily Net Cash G&A expenses per vessel
Reconciliation
|
|
|
|
|
|
(In thousands of
U.S. Dollars, except for daily rates) |
|
|
|
|
|
|
|
|
|
|
|
First quarter2019 |
|
First quarter2018 |
|
|
|
|
|
|
|
General and administrative expenses |
|
$ |
7,233 |
|
|
$ |
7,319 |
|
|
Plus: |
|
|
|
|
|
Management fees |
|
|
4,089 |
|
|
|
1,930 |
|
|
Less: |
|
|
|
|
|
Stock – based
compensation |
|
|
(251 |
) |
|
|
(1,062 |
) |
|
One-time expenses |
|
|
- |
|
|
|
(30 |
) |
|
Net Cash G&As
expenses (excluding one-time expenses) |
|
$ |
11,071 |
|
|
$ |
8,157 |
|
|
|
|
|
|
|
|
Ownership days |
|
|
9,658 |
|
|
|
6,483 |
|
|
Charter-in days |
|
|
1,740 |
|
|
|
928 |
|
|
Average daily Net Cash
G&A expenses per vessel (excluding one-time
expenses) |
|
$ |
971 |
|
|
$ |
1,101 |
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, May 23, 2019 at 11:00
a.m., Eastern Time (ET).
Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1(877) 553-9962 (from the US), 0(808) 238-0069 (from the UK) or +
(44) (0) 2071 928 592 (Standard International Dial In). Please
quote "Star Bulk."
A replay of the conference call will be
available until Thursday, May 30, 2019. The United States replay
number is 1(866) 331-1332; from the UK 0(808) 238-0667; the
standard international replay number is (+44) (0) 3333 009 785 and
the access code required for the replay is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast
over the Internet through the Star Bulk website (www.starbulk.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About Star Bulk
Star Bulk is a global shipping company providing
worldwide seaborne transportation solutions in the dry bulk sector.
Star Bulk’s vessels transport major bulks, which include iron ore,
coal and grain, and minor bulks, which include bauxite, fertilizers
and steel products. Star Bulk was incorporated in the Marshall
Islands on December 13, 2006 and maintains executive offices in
Athens, Oslo, New York, Limassol and Geneva. Its common stock
trades on the Nasdaq Global Select Market and on the Oslo Stock
Exchange under the symbol “SBLK”. On a fully delivered basis, Star
Bulk will have a fleet of 109 vessels, with an aggregate capacity
of 12.45 million dwt, consisting of 17 Newcastlemax, 19 Capesize, 2
Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax
and 10 Supramax vessels with carrying capacities between 52,055 dwt
and 209,537 dwt. Where we refer to information on a “fully
delivered basis,” we are referring to such information after
giving effect to the delivery of two newbuilding vessels.
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect,” “pending” and similar
expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, examination by the Company’s management of historical
operating trends, data contained in its records and other data
available from third parties. Although the Company believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include general dry bulk shipping market
conditions, including fluctuations in charter rates and vessel
values; the strength of world economies; the stability of Europe
and the Euro; fluctuations in interest rates and foreign exchange
rates; changes in demand in the dry bulk shipping industry,
including the market for our vessels; changes in our operating
expenses, including bunker prices, dry docking and insurance costs;
changes in governmental rules and regulations or actions taken by
regulatory authorities; potential liability from pending or future
litigation; general domestic and international political
conditions; potential disruption of shipping routes due to
accidents or political events; the availability of financing and
refinancing; our ability to meet requirements for additional
capital and financing to complete our newbuilding program and grow
our business; the impact of the level of our indebtedness and the
restrictions in our debt agreements; vessel breakdowns and
instances of off‐hire; risks associated with vessel construction;
potential exposure or loss from investment in derivative
instruments; potential conflicts of interest involving our Chief
Executive Officer, his family and other members of our senior
management and our ability to complete acquisition transactions as
planned. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks
and uncertainties. The information set forth herein speaks only as
of the date hereof, and the Company disclaims any intention or
obligation to update any forward‐looking statements as a result of
developments occurring after the date of this communication.
Contacts
Company:Simos Spyrou, Christos
BeglerisCo ‐ Chief Financial Officers Star Bulk Carriers Corp.c/o
Star Bulk Management Inc.40 Ag. Konstantinou Av.Maroussi
15124Athens, GreeceEmail: info@starbulk.comwww.starbulk.com
Investor Relations / Financial Media:Nicolas
BornozisPresidentCapital Link, Inc.230 Park Avenue, Suite 1536New
York, NY 10169Tel. (212) 661‐7566E‐mail:
starbulk@capitallink.comwww.capitallink.com
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