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 third quarter and the nine
months ended September 30, 2019.
Financial Highlights
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(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
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Third quarter 2019 |
Third quarter 2018 |
Nine months ended September 30, 2019 |
Nine months ended September 30, 2018 |
|
Voyage Revenues |
$248,444 |
$188,467 |
$572,726 |
|
$442,128 |
|
Net income/(loss) |
$5,815 |
$26,054 |
($39,700 |
) |
$46,682 |
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Net cash provided by operating activities |
$27,659 |
$48,086 |
$35,286 |
|
$109,173 |
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EBITDA (1) |
$60,535 |
$75,603 |
$118,023 |
|
$169,440 |
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Adjusted EBITDA (1) |
$72,199 |
$80,058 |
$149,360 |
|
$178,508 |
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Adjusted Net income / (loss) (2) |
$17,266 |
$30,546 |
($9,657 |
) |
$55,782 |
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Earnings / (loss) per share basic |
$0.06 |
$0.30 |
($0.43 |
) |
$0.65 |
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Adjusted earnings / (loss) per share basic (2) |
$0.18 |
$0.35 |
($0.10 |
) |
$0.78 |
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Average Number of Vessels |
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116.1 |
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98.2 |
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110.2 |
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81.4 |
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TCE Revenues (3) |
$131,329 |
$129,203 |
$328,210 |
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$301,166 |
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Daily Time Charter Equivalent Rate ("TCE") (3) |
$14,688 |
$14,549 |
$12,143 |
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$13,691 |
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Average daily OPEX per vessel (4) |
$3,719 |
$4,054 |
$3,917 |
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$4,066 |
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Average daily OPEX per vessel (excl. pre-delivery expenses)
(4) |
$3,693 |
$4,054 |
$3,876 |
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$4,018 |
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Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (5) |
$828 |
$918 |
$931 |
|
$1,018 |
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- 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 gain / (loss). In addition, we installed
scrubbers on certain of our vessels in the second and third
quarters of 2019. Some of these vessels were scheduled to undergo
their dry docking surveys due in 2020. In order to avoid any
further off hire days for these vessels in 2020, we decided to
complete the dry docking survey for these vessels concurrently with
the installation of scrubbers in the second and third quarters of
2019. As a result, in the second and third quarters of 2019, we
incurred fees and expenses associated with the dry docking of these
vessels, which would have otherwise been incurred in 2020. For
continuity and comparison purposes in the Adjusted EBITDA
calculation we include only the dry docking expenses for the
vessels which were due for their periodic dry dock during
2019.
- 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. In addition, as discussed above, for continuity and
comparison purposes in the Adjusted Net Income calculation we
include only the dry dock expenses for the vessels which were due
for their periodic dry dock during 2019.
- 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, as well as
for the definition of the respective measures.
- 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 returned to
profitability during the third quarter 2019, reporting TCE Revenues
of $131.3 million, Adjusted EBITDA of $72.2 million and a Net
Profit of $5.8 million. The average TCE increased to $14,688/ day
per vessel despite our fleet being affected by the repositioning to
the Pacific due to our scrubber installation program. Daily Opex
and Net Cash G&A expenses per vessel were reduced to $3,693/day
and $828/day respectively.
We continued making significant progress in
executing our scrubber retrofit program, having installed 88
towers, 50 of which are certified as of today. We are expecting to
complete the certification process for the vast majority of our
vessels by the end of the year aiming to realize commercial and
operational benefits from the scrubber investment.
On the basis of the above results and our
scrubber investment, we are pleased to announce a cash dividend for
the quarter of $0.05 per share. We are also establishing a
transparent dividend policy, under which the Company will
distribute dividends once our cash balance has reached set
thresholds. We believe the policy safeguards our strong balance
sheet, whilst creating value by returning cash to our
shareholders.”
Declaration of Dividend
- The Company’s Board of Directors
(the “Board”) declared a quarterly cash dividend of $0.05 per share
on November 20, 2019, payable on or about December 16, 2019, to all
shareholders of record as of December 2, 2019 (“Record Date”).
The ex-dividend date is expected to be November 29, 2019.
Dividend Policy
- On November 20, 2019, the Board
also established a future dividend policy pursuant to which the
Board intends to declare a dividend in each of February, May,
August and November in an amount equal to (a) SBLK’s Total Cash
Balance minus (b) the product of (i) the Minimum Cash Balance per
Vessel and (ii) the Number of Vessels.
- “Total Cash Balance” means (a) the
aggregate amount of cash on SBLK’s balance sheet as of the last day
of the quarter preceding the relevant dividend declaration date
minus (b) any proceeds received by SBLK and its subsidiaries from
vessel sales or securities offerings in the last 12 months that
have been earmarked for share repurchases, debt prepayment and
vessel acquisitions.
- “Minimum Cash Balance per Vessel”
means:
- $1.00 million for December 31, 2019;
- $1.15 million for March 31, 2020
- $1.30 million for June 30, 2020
- $1.45 million for September 30, 2020
- $1.60 million for December 31, 2020
- $1.75 million for March 31, 2021
- $1.90 million for June 30, 2021
- $2.10 million for September 30, 2021
- “Number of Vessels” means the total
number of vessels owned or leased on a bareboat basis by Star Bulk
and its subsidiaries as of the last day of the quarter preceding
the relevant dividend declaration date.
- Any future dividends remain subject
to approval of our Board each quarter, after its review of our
financial performance and will depend upon various factors,
including but not limited to the prevailing charter market
conditions, capital requirements, limitations under our credit
agreements and applicable provisions of Marshall Islands law. There
can be no assurance that our Board will declare any dividend in the
future.
Recent Developments
Fleet Update
- In October, 2019, we agreed to sell
the Star Cosmo, a 2005 built Supramax vessel and the Star Epsilon,
a 2001 built Supramax vessel. We expect to deliver both vessels to
their new owners by the end of November. The proceeds from these
sales, after prepayment of the debt related to the two vessels, are
expected to be approximately $6.0 million and we expect to incur a
non-cash loss of approximately $4.5 million in the fourth quarter
of 2019.
Scrubber Update
- During Q3 2019 we have completed the installation of 44
scrubber systems, bringing the total number of scrubbers installed
to 78, as of September 30, 2019.
- The Company continues to execute on its plan to install
scrubbers on 114 out of 116 vessels in its fleet, having installed
a total of 88 scrubbers as of November 20, 2019.
Financing Activities
- In October 2019 and November 2019, we drew down an aggregate
amount of $106.5 million under the CEXIM $106.5 million Facility,
which we entered into in September 2019. The proceeds were used to
refinance $101.5 million outstanding under the previous lease
agreements of the Katie K, the Debbie H, and the Star Ayesha.
- In September 2019, we entered into a committed term sheet with
a major European bank for an amount of up to $30.0 million in order
to finance working capital requirements, which remains subject to
execution of customary definitive documentation.
Scrubber Financing
Activities
- We incurred the following
indebtedness to finance our scrubber installation program:--
On August 12, 2019, we drew down $3.3 million under the Attradius
Facility.-- In September 2019, we drew down (i) $15.6 million
under the DNB $310.0 million Facility, (ii) $1.3 million under the
SEB Facility and (iii) $7.6 million under the lease agreements with
CMBL.
- Subsequent to September 30,
2019, we drew down (i) another $10.9 million under the DNB $310.0
million Facility, (ii) $1.4 million under the ING Facility and
(iii) a further $4.6 million under the lease agreements with
CMBL.
- Following these drawdowns, the
total drawn amount for scrubber financing is $79.1 million and the
remaining available scrubber-related financing under all of our
debt and lease agreements is $70.7 million.
Employment update
The below estimated daily TCE rates are provided
using the discharge-to-discharge method of accounting, while as per
US GAAP we recognize revenues in our books using the
load-to-discharge method of accounting. Both methods, recognize the
same total TCE revenues over the completion of a voyage, however
discharge-to-discharge method recognizes revenues over more days,
resulting in lower daily TCE rates. Under the load-to discharge
method of accounting, increased ballast days at the end of the
quarter will reduce the revenues that can be booked, following the
accounting cut-off, in the relevant quarter, resulting in reduced
daily TCE rates for the respective period.
As of today, we have fixed employment for approximately 68% of
the days in Q4 2019 at average TCE rates of $16,284 per day.
More specifically:
Capesize / Newcastlemax Vessels: approximately 63.7% of Q4 2019
days at $23,599 per day.
Post Panamax / Kamsarmax / Panamax Vessels: approximately 68.3%
of Q4 2019 days at $14,064 per day.
Ultramax / Supramax Vessels: approximately 72.6% of Q4 2019
days at $11,743 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.
Third Quarter 2019 and 2018
Results
Voyage revenues for the third quarter of 2019
increased to $248.4 million from $188.5 million in the third
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
$131.0 million for the third quarter of 2019, compared to $129.0
million for the third quarter of 2018. While the average number of
vessels in the third quarter of 2019 increased to 116.1 from 98.2
in the third quarter of 2018, the Available days for the third
quarter of 2019 were not increased proportionally due to the
installation of scrubbers and increased dry docking activity during
the third quarter of 2019. The TCE rate for the third quarter of
2019 was $14,688 compared to $14,549 for the third quarter of
2018.
For the third quarter of 2019, operating income
was $28.6 million, which includes depreciation of $32.2 million,
compared to operating income of $47.5 million for the third quarter
of 2018, which included depreciation of $28.8 million. Depreciation
increased during the third quarter of 2019 due to a higher average
number of vessels in our fleet as described above. Operating income
declined in the third quarter of 2019 as compared to the third
quarter of 2018, mainly because of higher depreciation expense as
well as the significantly higher dry docking expenses also affected
by our management’s decision to bring forward to 2019 all the 2020
dry docking services concurrently with the installation of
scrubbers in order to avoid any additional off hire days in 2020
due to dry docking.
For the third quarter of 2019, we had a net
income of $5.8 million, or $0.06 earnings per share, basic and
diluted, based on 94,188,543 weighted average basic shares and
94,276,144 weighted average diluted shares, respectively. Net
income for the third quarter of 2018 was $26.1 million, or $0.30
earnings per share, basic and diluted, based on 87,025,267 weighted
average basic shares and 87,430,711 weighted average diluted
shares, respectively.
Net income for the third 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 $0.4 million or $0.004 per share,
basic and diluted;
- Stock-based compensation expense of
$3.5 million, or $0.04 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees; and
- Net amortization of the fair value
of below and above market acquired time charters of $0.3 million,
or $0.003 per share, basic and diluted, associated with time
charters attached to vessels acquired. The respective net
amortization was recorded as an increase to voyage revenues.
In addition, as mentioned above, we installed
scrubbers on certain of our vessels in the third quarter of 2019.
Some of these vessels were due to undergo their scheduled dry
docking surveys in 2020. In order to avoid any additional off hire
days for these vessels in 2020 due to dry docking, we decided to
complete the dry docking survey for these vessels concurrently with
the installation of scrubbers in the third quarter of 2019. During
the third quarter of 2019, we incurred dry docking expenses of
$16.7 million, $8.5 million of which related to accelerated dry
dockings due in 2020. During the third quarter of 2019 20 of our
vessels completed their periodic dry docking surveys. Dry docking
expenses for the third quarter of 2018 were $2.6 million
corresponding to three of our vessels that underwent their periodic
dry docking surveys.
Net income for the third quarter of 2018,
included the following significant non-cash items, other than
depreciation expense:
- Stock-based compensation expense of
$2.7 million, or $0.03 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees;
- Unrealized loss on forward freight
agreements and bunker swaps of $1.3 million, or $0.01 per share,
basic and diluted;
- Loss on debt extinguishment $1.4
million, $0.02 per share, basic and diluted, recognized in
connection with the refinancing of certain of our debt
facilities;
- Unrealized gain on derivative
financial instruments of $0.7 million or $0.01 per share and
diluted; and
- Amortization of the fair value of
below market acquired time charters of $0.7 million, $0.01 per
share, basic and diluted, associated with the time charters
attached to two vessels acquired during this quarter. The
respective amortization was recorded as an increase to voyage
revenues.
Adjusted net income for the third quarter of
2019, which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $17.3
million, or $0.18 earnings per share, basic and diluted, compared
to adjusted net income of $30.5 million, or $0.35 earnings per
share, basic and diluted, for the third quarter of 2018.
Adjusted EBITDA for the third quarter of 2019,
which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $72.2
million, compared to $80.1 million for the third quarter of
2018.
For the third quarters of 2019 and 2018, vessel
operating expenses were $39.7 million and $36.6 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 116.1 from 98.2. Vessel operating
expenses for the third quarter of 2019 included pre-delivery and
pre-joining expenses of $0.3 million while no such expenses were
incurred during the third quarter of 2018. Excluding these
expenses, our average daily operating expenses per vessel for the
third quarter of 2019 and 2018, were $3,693 and $4,054,
respectively.
General and administrative expenses for the
third quarters of 2019 and 2018 were $9.7 million and $9.0 million,
respectively. Management fees for the third quarters of 2019 and
2018 were $4.6 million and $3.4 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 and 2019. Our average daily net cash general and
administrative expenses per vessel (including management fees) for
the third quarter of 2019 were reduced to $828 from $918 during the
third 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 third quarters
of 2019 and 2018 was $48.5 million and $27.1 million, respectively.
The increase is mainly due to the increase in charter-in days of
2,372 in the third quarter of 2019 compared to 1,511 in the third
quarter of 2018. In both quarters, the charter-in days are mainly
attributable to the activities of our subsidiary Star
Logistics.
For the third quarter of 2019, we incurred a net
loss on forward freight agreements and bunker swaps of $0.6
million, consisting of realized loss of $1.0 million and unrealized
gain of $0.4 million. For the third quarter of 2018, we incurred a
net loss on forward freight agreements and bunker swaps of $1.1
million, consisting of realized gain of $0.2 million and unrealized
loss of $1.3 million.
Interest and finance costs net of interest and
other income/ (loss) for the third quarters of 2019 and 2018 were
$22.5 million and $20.7 million, respectively. The increase is
primarily attributable to the increase in the weighted average
balance of our outstanding indebtedness of $1,572.5 million during
the third quarter of 2019 compared to $1,376.2 million for the same
period in 2018.
Nine months ended September 30, 2019 and 2018
Results
Voyage revenues for the nine months ended
September 30, 2019 increased to $572.7 million from $442.1 million
for the nine months ended September 30, 2018. Adjusted TCE Revenues
were $326.7 million for the nine months ended September 30, 2019,
compared to $300.9 million for the nine months ended September 30,
2018. Adjusted TCE Revenues were positively impacted by an increase
in the average number of vessels in our fleet to 110.2 in the nine
months ended September 30, 2019, up from 81.4 in the nine months
ended September 30, 2018. The TCE rate for the nine months ended
September 30, 2019 was $12,143 compared to $13,691 for the nine
months ended September 30, 2018, reflecting the weaker dry bulk
market environment in 2019 compared to the same period in 2018.
For the nine months ended September 30, 2019,
operating income was $27.5 million, which includes depreciation of
$92.0 million. Operating income of $98.0 million for the nine
months ended September 30, 2018 included depreciation of $72.0
million. Depreciation increased during the nine months ended
September 30, 2019 due to the higher average number of vessels in
our fleet as described above. Operating income declined in the nine
months ended September 30, 2019 as compared to the nine months
ended September 30, 2018, mainly because of higher depreciation
expense and higher operating expenses due to the higher average
number of vessels in our fleet as well as the significantly higher
dry docking expenses as discussed above partially offset by the
increase in Adjusted TCE Revenues as discussed above.
For the nine months ended September 30, 2019, we
had a net loss of $39.7 million, or $0.43 loss per share, basic and
diluted, based on 93,040,799 weighted average basic and diluted
shares. Net income for the nine months ended September 30, 2018 was
$46.7 million, or $0.65 earnings per share, basic and diluted,
based on 71,872,575 weighted average basic shares and 72,206,527
weighted average diluted shares, respectively.
Net loss for the nine months ended September 30,
2019, included the following significant non-cash items, other than
depreciation expense mentioned above:
- Unrealized loss on forward freight
agreements and bunker swaps of $0.6 million, or $0.01 per share,
basic and diluted;
- Stock-based compensation expense of
$6.4 million, or $0.07 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees;
- Impairment loss of $3.4 million, or
$0.04 per share, basic and diluted, recognized in connection with
the agreement to sell the vessels Star Anna and Star Gamma;
- Loss on sale of vessels of $0.8
million, or $0.01 per basic and diluted share in connection with
the vessels’ sales that took place during the period;
- Loss on bad debt of $1.3 million or
$0.01 per basic and diluted share associated with the write‐off of
disputed charterer balances; and
- Net amortization of the fair value
of below and above market acquired time charters of $1.5 million,
or $0.02 per share, basic and diluted, associated with time
charters attached to vessels acquired. The respective net
amortization was recorded as an increase to voyage revenues.
In addition, during the nine months ended
September 30, 2019, we incurred dry docking expenses of $45.4
million, $19.0 of which relating to accelerated dry dockings due in
2020. During the nine months ended September 30, 2019, 32 of our
vessels completed their periodic dry docking surveys. Dry docking
expenses for the nine months ended September 30, 2018, were $5.8
million corresponding to five of our vessels that underwent their
periodic dry docking surveys.
Net income for the nine months ended September
30, 2018, included the following significant non-cash items, other
than depreciation expense:
- Stock-based compensation expense of $7.7 million, or $0.11 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- Unrealized loss on forward freight agreements and bunker swaps
of $1.0 million, or $0.01 per share, basic and diluted;
- Loss on debt extinguishment of $1.5 million, or $0.02 per
share, basic and diluted, recognized in connection with the
refinance of certain of our debt facilities;
- Unrealized gain on derivative financial instruments of $0.7
million, or $0.01 per share, basic and diluted; and
- Amortization of the fair value of below market acquired time
charters of $0.7 million, or $0.01 per share, basic and diluted,
associated with time charters attached to two vessels acquired. The
respective amortization was recorded as an increase to voyage
revenues.
Adjusted net loss for the nine months ended
September 30, 2019, which excludes certain non-cash items and the
accelerated dry docking expenses that were due in 2020 discussed
above, was $9.7 million, or $0.10 loss per share, basic and
diluted, compared to adjusted net income of $55.8 million, or $0.78
earnings per share, basic, and $0.77 earnings per share, diluted
for the nine months ended September 30, 2018
Adjusted EBITDA for the nine months ended
September 30, 2019, which excludes certain non-cash items and the
accelerated dry docking expenses that were due in 2020 discussed
above, was $149.4 million, compared to $178.5 million for the nine
months ended September 30, 2018.
For the nine months ended September 30, 2019 and
2018, vessel operating expenses were $117.9 million and $90.3
million, respectively. This increase was primarily due to the
increase in the average number of vessels to 110.2 from 81.4.
Vessel operating expenses for the nine months ended September 30,
2019, included pre-delivery and pre-joining expenses of $1.2
million compared to $1.1 million in the same period in 2018.
Excluding these expenses, our average daily operating expenses per
vessel for the nine months ended September 30, 2019 and 2018, were
$3,876 and $4,018, respectively.
General and administrative expenses for the nine
months ended September 30, 2019 and 2018 were $26.8 million and
$26.7 million, respectively. Management fees for the nine months
ended September 30, 2019 and 2018 were $12.8 million and $7.3
million, respectively. The increase is attributable to the new
management agreements entered into in connection with the fleets we
acquired in the third quarters of 2018 and 2019. Our average
daily net cash general and administrative expenses per vessel
(including management fees) for the nine months ended September 30,
2019 were reduced to $931 from $1,018 during the nine months ended
September 30, 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 nine months
ended September 30, 2019 and of 2018 was $93.0 million and $67.9
million, respectively. The increase is due to charter-in days of
5,581 in the nine months ended September 30, 2019 compared to 3,596
in the same period in 2018. In both periods, the charter in days
are mainly attributable to the activities of our subsidiary Star
Logistics.
For the nine months ended September 30, 2019 we
incurred a net gain on forward freight agreements and bunker swaps
of $6.8 million, consisting of realized gain of $7.4 million and
unrealized loss of $0.6 million. For the nine months ended
September 30, 2018 we incurred a net gain on forward freight
agreements and bunker swaps of $0.9 million, consisting of
unrealized loss of $1.0 million and realized gain of $1.9
million.
Interest and finance costs net of interest and
other income/ (loss) for the nine months ended September 30, 2019
and 2018 were $65.2 million and $50.7 million, respectively. The
increase is primarily attributable to the increase in the weighted
average balance of our outstanding indebtedness of $1,503.5 million
during the nine months ended September 30, 2019, compared to
$1,162.8 million for the same period in 2018.
Liquidity and Capital ResourcesCash
Flows
Net cash provided by operating
activities for the nine months ended September 30, 2019 and 2018
was $35.3 million and $109.2 million, respectively.
The reduction was due to the weaker dry bulk
market in the nine months ended September 30, 2019 compared to the
same period in 2018, which resulted in a lower TCE rate of $12,143
compared to $13,691 for the nine months ended September 30, 2018.
Moreover, despite the increase in the average number of vessels in
our fleet, the decrease in TCE rates and the increased dry docking
activity resulting in $45.4 million expenses (including $19.0
million of expenses related to accelerated dry dockings
concurrently with certain of our scrubber installations), caused a
decrease of Adjusted EBITDA to $149.4 million for the nine months
ended September 30, 2019 from $178.5 million for the corresponding
period in 2018. This decrease in Adjusted EBITDA was combined with
(i) a net working capital outflow of $34.1 million during the nine
months ended September 30, 2019 compared to a net working capital
outflow of $16.5 million for the nine months ended September 30,
2018 and (ii) higher net interest expense due to an increase in the
average number of vessels in our fleet as well as due to incurrence
of debt for scrubbers’ financing for the nine months ended
September 30, 2019 compared to the corresponding period in
2018.
Net cash used in investing activities
for the nine months ended September 30, 2019 and 2018 was $253.4
million and $271.5 million,
respectively.
For the nine months ended September 30, 2019,
net cash used in investing activities mainly consisted of:
- $107.7 million paid in connection
with the acquisition of secondhand vessels and $95.8 million paid
in connection with three newbuilding vessels delivered during the
nine months ended September 30, 2019;
- $100.8 million paid for the
acquisition and installation of scrubber equipment and ballast
water management systems for certain of our vessels;
offset by:
- $44.2 million of proceeds from the
sale of five vessels concluded during the period; and
- $6.7 million of insurance
proceeds.
For the nine months ended September 30, 2018,
net cash used in investing activities mainly consisted of $273.0
million paid for advances and other capitalized expenses for our
newbuilding and newly acquired vessels delivered during the period,
offset partially by hull and machinery insurance proceeds of $1.5
million.
Net cash provided by financing
activities for the nine months ended September 30, 2019 and 2018
was $121.4 million and $127.0 million, respectively.
For the nine months ended September 30, 2019,
net cash provided by financing activities mainly consisted of:
- $620.4 million of proceeds from financing transactions
including financing from leases;
offset by:
- $468.6 million lease and debt obligations paid in aggregate in
connection with: (i) the regular amortization of outstanding vessel
financings and finance lease installments, and (ii) early repayment
due to the refinancing of certain of our facilities and the sale of
vessels;
- $20.5 million used mainly to repurchase our common shares under
our previously announced share repurchase program;
- $8.2 million of financing fees paid in connection with the new
financing agreements; and
- $1.7 million of prepayment fees paid in connection with early
repaid debt due to its refinancing.
For the nine months ended September 30, 2018,
net cash provided by financing activities mainly consisted of:
- $710.7 million of proceeds from financing transactions
including financing from leases
offset partially by:
- $576.7 million paid in aggregate in connection with: (i) the
regular amortization of outstanding vessel financings and capital
lease installments (ii) early repayment due to the refinancing of
certain of our facilities (iii) payments under our cash sweep
mechanism and (iv) full repayment of deferred debt amounts;
and
- $7.7 million of financing fees paid in connection with new debt
facilities.
Summary of Selected Data
|
|
|
|
|
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Average number of vessels (1) |
|
116.1 |
|
|
98.2 |
|
Number
of vessels (2) |
|
118 |
|
|
105 |
|
Average
age of operational fleet (in years) (3) |
|
8.2 |
|
|
7.8 |
|
Ownership days (4) |
|
10,685 |
|
|
9,039 |
|
Available days (5) |
|
8,919 |
|
|
8,865 |
|
Charter-in days (6) |
|
2,372 |
|
|
1,511 |
|
Daily
Time Charter Equivalent Rate (7) |
$14,688 |
|
$14,549 |
|
Average
daily OPEX per vessel (8) |
$3,719 |
|
$4,054 |
|
Average
daily OPEX per vessel (excl. pre-delivery expenses) |
$3,693 |
|
$4,054 |
|
Average
daily Net Cash G&A expenses per vessel (excluding one-time
expenses) (9) |
$828 |
|
$918 |
|
|
|
|
|
|
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
Average
number of vessels (1) |
|
110.2 |
|
|
81.4 |
|
Number
of vessels (2) |
|
118 |
|
|
105 |
|
Average
age of operational fleet (in years) (3) |
|
8.2 |
|
|
7.8 |
|
Ownership days (4) |
|
30,096 |
|
|
22,213 |
|
Available days (5) |
|
26,905 |
|
|
21,980 |
|
Charter-in days (6) |
|
5,581 |
|
|
3,596 |
|
Daily
Time Charter Equivalent Rate (7) |
$12,143 |
|
$13,691 |
|
Average
daily OPEX per vessel (8) |
$3,917 |
|
$4,066 |
|
Average
daily OPEX per vessel (excl. pre-delivery expenses) |
$3,876 |
|
$4,018 |
|
Average
daily Net Cash G&A expenses per vessel (excluding one-time
expenses) (9) |
$931 |
|
$1,018 |
|
|
|
|
|
|
(1) 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.(2) As of the last
day of the periods reported.(3) Average age of operational
fleet is calculated as of the end of each period.(4)
Ownership days are the total calendar days each vessel in the fleet
was owned by us for the relevant period, including vessels subject
to sale and leaseback transactions and finance
leases. (5) 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. (6) Charter-in days are the total days that we
charter-in third-party vessels.(7) 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, as well as adjusted for the impact of realized gain/(loss) on
forward freight agreements (“FFAs”) and bunker swaps) 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. Starting with the second quarter of 2019, we include
the realized gain/(loss) on FFAs and bunker swaps in the
calculation of the TCE Revenues. We believe the revised method will
better reflect the chartering result of our fleet and is more
comparable to the method used by our peers. The change has been
applied retrospectively for all periods presented herein. TCE
revenues, a non-GAAP measure, provides additional meaningful
information in conjunction with voyage revenues, the most directly
comparable GAAP measure, because it assists Company’s management in
making decisions regarding the deployment and use of its vessels
and because the Company believes that it provides useful
information to investors regarding the Company's financial
performance. 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. 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. (8) Average daily OPEX per vessel is
calculated by dividing vessel operating expenses by Ownership
days.(9) 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 Statement of
Operations
|
|
|
|
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars except for share and per share data) |
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Voyage revenues |
|
$ |
248,444 |
|
|
$ |
188,467 |
|
|
$ |
572,726 |
|
|
$ |
442,128 |
|
|
Total
revenues |
|
|
248,444 |
|
|
|
188,467 |
|
|
|
572,726 |
|
|
|
442,128 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
(67,575 |
) |
|
|
(32,382 |
) |
|
|
(158,904 |
) |
|
|
(74,968 |
) |
|
Charter-in hire expense |
|
|
(48,545 |
) |
|
|
(27,128 |
) |
|
|
(92,987 |
) |
|
|
(67,891 |
) |
|
Vessel operating
expenses |
|
|
(39,741 |
) |
|
|
(36,647 |
) |
|
|
(117,874 |
) |
|
|
(90,328 |
) |
|
Dry docking expenses |
|
|
(8,160 |
) |
|
|
(2,576 |
) |
|
|
(26,339 |
) |
|
|
(5,845 |
) |
|
Accelerated dry docking
expenses due in 2020 |
|
|
(8,522 |
) |
|
|
- |
|
|
|
(19,045 |
) |
|
|
- |
|
|
Depreciation |
|
|
(32,206 |
) |
|
|
(28,795 |
) |
|
|
(91,987 |
) |
|
|
(72,038 |
) |
|
Management fees |
|
|
(4,613 |
) |
|
|
(3,366 |
) |
|
|
(12,801 |
) |
|
|
(7,279 |
) |
|
Loss on bad debt |
|
|
- |
|
|
|
- |
|
|
|
(1,250 |
) |
|
|
- |
|
|
General and administrative
expenses |
|
|
(9,706 |
) |
|
|
(9,047 |
) |
|
|
(26,768 |
) |
|
|
(26,749 |
) |
|
Gain/(Loss) on forward freight
agreements and bunker swaps |
|
|
(587 |
) |
|
|
(1,058 |
) |
|
|
6,796 |
|
|
|
942 |
|
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
(3,411 |
) |
|
|
- |
|
|
Other operational loss |
|
|
(110 |
) |
|
|
- |
|
|
|
(110 |
) |
|
|
- |
|
|
Other operational gain |
|
|
15 |
|
|
|
(2 |
) |
|
|
186 |
|
|
|
39 |
|
|
Gain/(Loss) on sale of
vessels |
|
|
(70 |
) |
|
|
- |
|
|
|
(770 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss) |
|
|
28,624 |
|
|
|
47,466 |
|
|
|
27,462 |
|
|
|
98,011 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs |
|
|
(22,411 |
) |
|
|
(21,353 |
) |
|
|
(66,237 |
) |
|
|
(51,691 |
) |
|
Interest and other
income/(loss) |
|
|
(90 |
) |
|
|
636 |
|
|
|
1,006 |
|
|
|
1,030 |
|
|
Gain/(Loss) on derivative
financial instruments |
|
|
- |
|
|
|
708 |
|
|
|
- |
|
|
|
707 |
|
|
Loss on debt
extinguishment |
|
|
(330 |
) |
|
|
(1,449 |
) |
|
|
(1,949 |
) |
|
|
(1,470 |
) |
|
Total other expenses,
net |
|
|
(22,831 |
) |
|
|
(21,458 |
) |
|
|
(67,180 |
) |
|
|
(51,424 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before
equity in investee |
|
|
5,793 |
|
|
|
26,008 |
|
|
|
(39,718 |
) |
|
|
46,587 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in income/(loss) of
investee |
|
|
33 |
|
|
|
46 |
|
|
|
88 |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before
taxes |
|
$ |
5,826 |
|
|
$ |
26,054 |
|
|
$ |
(39,630 |
) |
|
$ |
46,682 |
|
|
|
|
|
|
|
|
|
|
|
|
US Source Income
taxes |
|
|
(11 |
) |
|
|
- |
|
|
|
(70 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
5,815 |
|
|
$ |
26,054 |
|
|
$ |
(39,700 |
) |
|
$ |
46,682 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share,
basic and diluted |
|
$ |
0.06 |
|
|
$ |
0.30 |
|
|
$ |
(0.43 |
) |
|
$ |
0.65 |
|
|
Weighted average number of
shares outstanding, basic |
|
|
94,188,543 |
|
|
|
87,025,267 |
|
|
|
93,040,799 |
|
|
|
71,872,575 |
|
|
Weighted average number of
shares outstanding, diluted |
|
|
94,276,144 |
|
|
|
87,430,711 |
|
|
|
93,040,799 |
|
|
|
72,206,527 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets
|
|
(Expressed in
thousands of U.S. dollars) |
|
|
|
ASSETS |
|
September 30, 2019 |
|
December 31, 2018 |
|
Cash and cash equivalents |
|
$ |
106,806 |
|
$ |
204,921 |
|
Vessel held for sale |
|
|
- |
|
|
5,949 |
|
Other current assets |
|
|
141,740 |
|
|
87,966 |
|
TOTAL CURRENT
ASSETS |
|
|
248,546 |
|
|
298,836 |
|
|
|
|
|
|
|
Advances for vessels under
construction and acquisition of vessels |
|
|
- |
|
|
59,900 |
|
Vessels and other fixed
assets, net |
|
|
2,954,831 |
|
|
2,656,108 |
|
Other non-current assets |
|
|
12,408 |
|
|
7,293 |
|
TOTAL
ASSETS |
|
$ |
3,215,785 |
|
$ |
3,022,137 |
|
|
|
|
|
|
|
Current portion of long-term
debt and finance lease commitments |
|
$ |
182,037 |
|
$ |
166,844 |
|
Other current liabilities |
|
|
96,134 |
|
|
55,873 |
|
TOTAL CURRENT
LIABILITIES |
|
|
278,171 |
|
|
222,717 |
|
|
|
|
|
|
|
Long-term debt and finance
lease commitments non-current(net of unamortized deferred finance
fees of $17,215 and $13,972, respectively) |
|
|
1,360,114 |
|
|
1,226,744 |
|
Senior Notes (net of
unamortized deferred finance fees of $1,283 and $1,590,
respectively) |
|
|
48,717 |
|
|
48,410 |
|
Other non-current
liabilities |
|
|
4,967 |
|
|
4,221 |
|
TOTAL
LIABILITIES |
|
$ |
1,691,969 |
|
$ |
1,502,092 |
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
1,523,816 |
|
|
1,520,045 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
$ |
3,215,785 |
|
$ |
3,022,137 |
|
|
|
|
|
|
|
Unaudited Cash Flow Data
(Expressed in
thousands of U.S. dollars) |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating activities |
|
$ |
35,286 |
|
|
$ |
109,173 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by / (used in) investing activities |
|
|
(253,400 |
) |
|
|
(271,546 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided
by / (used in) financing activities |
|
|
121,359 |
|
|
|
127,023 |
|
|
|
|
|
|
|
|
|
|
|
|
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 gain/(loss) 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. In addition, as mentioned above, together with our scrubber
installation program and in order to avoid any additional off hire
days in 2020 and be in a position to have no dry docking in 2020
and maximize our scrubber returns, we have decided to bring forward
to 2019 all the 2020 dry docking services. For continuity and
comparison purposes in the Adjusted EBITDA calculation we include
only the dry docking expenses for the vessels which were due for
their periodic dry dock during 2019.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars) |
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
Net cash provided by/(used in) operating activities |
|
$ |
27,659 |
|
|
$ |
48,086 |
|
|
$ |
35,286 |
|
|
$ |
109,173 |
|
|
Net decrease / (increase)
in current assets |
|
|
15,479 |
|
|
|
26,901 |
|
|
|
56,020 |
|
|
|
39,663 |
|
|
Net increase / (decrease) in
operating liabilities, excluding current portion of long term
debt |
|
|
(539 |
) |
|
|
(17,294 |
) |
|
|
(22,164 |
) |
|
|
(23,249 |
) |
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
(3,411 |
) |
|
|
- |
|
|
Loss on debt
extinguishment |
|
|
(330 |
) |
|
|
(1,449 |
) |
|
|
(1,949 |
) |
|
|
(1,470 |
) |
|
Stock – based
compensation |
|
|
(3,513 |
) |
|
|
(2,724 |
) |
|
|
(6,370 |
) |
|
|
(7,735 |
) |
|
Amortization of deferred
finance charges |
|
|
(1,448 |
) |
|
|
(789 |
) |
|
|
(4,023 |
) |
|
|
(2,156 |
) |
|
Unrealized and accrued
gain/(loss) on derivative financial instruments |
|
|
149 |
|
|
|
657 |
|
|
|
- |
|
|
|
1,230 |
|
|
Unrealized gain / (loss) on
forward freight agreements and bunker swaps |
|
|
408 |
|
|
|
(1,304 |
) |
|
|
(579 |
) |
|
|
(955 |
) |
|
Total other expenses, net |
|
|
22,831 |
|
|
|
21,458 |
|
|
|
67,180 |
|
|
|
51,424 |
|
|
Fair value hedge
adjustment |
|
|
- |
|
|
|
(82 |
) |
|
|
- |
|
|
|
1,323 |
|
|
Other non-current assets |
|
|
- |
|
|
|
1,972 |
|
|
|
- |
|
|
|
1,972 |
|
|
Gain/(Loss) on hull and
machinery claims |
|
|
(135 |
) |
|
|
125 |
|
|
|
(105 |
) |
|
|
125 |
|
|
Loss on bad debt |
|
|
- |
|
|
|
- |
|
|
|
(1,250 |
) |
|
|
- |
|
|
Income tax |
|
|
11 |
|
|
|
- |
|
|
|
70 |
|
|
|
- |
|
|
Gain/(Loss) on sale of
vessels |
|
|
(70 |
) |
|
|
- |
|
|
|
(770 |
) |
|
|
- |
|
|
Equity in income/(loss) of
investee |
|
|
33 |
|
|
|
46 |
|
|
|
88 |
|
|
|
95 |
|
|
EBITDA |
|
$ |
60,535 |
|
|
$ |
75,603 |
|
|
$ |
118,023 |
|
|
$ |
169,440 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (income)/loss of
investee |
|
|
(33 |
) |
|
|
(46 |
) |
|
|
(88 |
) |
|
|
(95 |
) |
|
Unrealized (gain)/loss on
forward freight agreements and bunker swaps |
|
|
(408 |
) |
|
|
1,304 |
|
|
|
579 |
|
|
|
955 |
|
|
(Gain)/Loss on sale of
vessels |
|
|
70 |
|
|
|
- |
|
|
|
770 |
|
|
|
- |
|
|
Accelerated dry docking
expenses due in 2020 |
|
|
8,522 |
|
|
|
- |
|
|
|
19,045 |
|
|
|
- |
|
|
Stock-based compensation |
|
|
3,513 |
|
|
|
2,724 |
|
|
|
6,370 |
|
|
|
7,735 |
|
|
Loss on bad debt |
|
|
- |
|
|
|
- |
|
|
|
1,250 |
|
|
|
- |
|
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
3,411 |
|
|
|
- |
|
|
Provision for onerous
contracts |
|
|
- |
|
|
|
473 |
|
|
|
- |
|
|
|
473 |
|
|
Adjusted
EBITDA |
|
$ |
72,199 |
|
|
$ |
80,058 |
|
|
$ |
149,360 |
|
|
$ |
178,508 |
|
|
|
|
|
|
|
|
|
|
|
|
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. Similarly with what was discussed above, for
continuity and comparison purposes we exclude from the Adjusted
Income/(loss) and Adjusted Earnings/(loss) per share the
accelerated dry docking expenses that were due in 2020. 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) |
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
Net income / (loss) |
|
$ |
5,815 |
|
|
$ |
26,054 |
|
|
$ |
(39,700 |
) |
|
$ |
46,682 |
|
|
Amortization of fair value of above/below market acquired time
charter agreements |
|
|
(328 |
) |
|
|
(704 |
) |
|
|
(1,514 |
) |
|
|
(704 |
) |
|
Loss on bad debt |
|
|
- |
|
|
|
- |
|
|
|
1,250 |
|
|
|
- |
|
|
Stock – based compensation |
|
|
3,513 |
|
|
|
2,724 |
|
|
|
6,370 |
|
|
|
7,735 |
|
|
Unrealized (gain) / loss on
forward freight agreements and bunker swaps |
|
|
(408 |
) |
|
|
1,304 |
|
|
|
579 |
|
|
|
955 |
|
|
Accelerate dry docking
expenses due in 2020 |
|
|
8,522 |
|
|
|
- |
|
|
|
19,045 |
|
|
|
- |
|
|
Unrealized (gain) / loss on
derivative financial instruments |
|
|
- |
|
|
|
(708 |
) |
|
|
- |
|
|
|
(734 |
) |
|
(Gain) / loss on sale of vessels |
|
|
70 |
|
|
|
- |
|
|
|
770 |
|
|
|
- |
|
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
3,411 |
|
|
|
- |
|
|
Provision for onerous contracts |
|
|
- |
|
|
|
473 |
|
|
|
- |
|
|
|
473 |
|
|
Loss on debt
extinguishment |
|
|
115 |
|
|
|
1,449 |
|
|
|
220 |
|
|
|
1,470 |
|
|
Equity in income/(loss) of investee |
|
|
(33 |
) |
|
|
(46 |
) |
|
|
(88 |
) |
|
|
(95 |
) |
|
Adjusted Net income /
(loss) |
|
$ |
17,266 |
|
|
$ |
30,546 |
|
|
$ |
(9,657 |
) |
|
$ |
55,782 |
|
|
Weighted average number of shares outstanding, basic |
|
|
94,188,543 |
|
|
|
87,025,267 |
|
|
|
93,040,799 |
|
|
|
71,872,575 |
|
|
Weighted average number of shares outstanding, diluted |
|
|
94,276,144 |
|
|
|
87,430,711 |
|
|
|
93,040,799 |
|
|
|
72,206,527 |
|
|
Adjusted Basic
Earnings / (Loss) Per Share |
|
$ |
0.18 |
|
|
$ |
0.35 |
|
|
$ |
(0.10 |
) |
|
$ |
0.78 |
|
|
Adjusted Diluted
Earnings / (Loss) Per Share |
|
$ |
0.18 |
|
|
$ |
0.35 |
|
|
$ |
(0.10 |
) |
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation
|
|
|
|
|
|
|
|
|
|
(In thousands of
U.S. Dollars, except for TCE rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
Voyage revenues |
|
$ |
248,444 |
|
|
$ |
188,467 |
|
|
$ |
572,726 |
|
|
$ |
442,128 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
(67,575 |
) |
|
|
(32,382 |
) |
|
|
(158,904 |
) |
|
|
(74,968 |
) |
|
Charter-in hire expense |
|
|
(48,545 |
) |
|
|
(27,128 |
) |
|
|
(92,987 |
) |
|
|
(67,891 |
) |
|
Realized gain/(loss) on
FFAs/bunker swaps |
|
|
(995 |
) |
|
|
246 |
|
|
|
7,375 |
|
|
|
1,897 |
|
|
Time Charter
equivalent revenues |
|
$ |
131,329 |
|
|
$ |
129,203 |
|
|
$ |
328,210 |
|
|
$ |
301,166 |
|
|
Provision for onerous
contracts |
|
|
- |
|
|
|
473 |
|
|
|
- |
|
|
|
473 |
|
|
Amortization of fair value of
below/above market acquired time charter agreements |
|
|
(328 |
) |
|
|
(704 |
) |
|
|
(1,514 |
) |
|
|
(704 |
) |
|
Adjusted Time Charter
equivalent revenues |
|
$ |
131,001 |
|
|
$ |
128,972 |
|
|
$ |
326,696 |
|
|
$ |
300,935 |
|
|
|
|
|
|
|
|
|
|
|
|
Available days |
|
|
8,919 |
|
|
|
8,865 |
|
|
|
26,905 |
|
|
|
21,980 |
|
|
Daily Time Charter
Equivalent Rate ("TCE") |
|
$ |
14,688 |
|
|
$ |
14,549 |
|
|
$ |
12,143 |
|
|
$ |
13,691 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily Net Cash G&A expenses per vessel
Reconciliation
|
|
|
|
|
|
|
|
|
|
(In thousands of
U.S. Dollars, except for daily rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2019 |
|
Third quarter 2018 |
|
Nine months ended September 30, 2019 |
|
Nine months ended September 30, 2018 |
|
General and administrative expenses |
|
$ |
9,706 |
|
|
$ |
9,047 |
|
|
$ |
26,768 |
|
|
$ |
26,749 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
Management fees |
|
|
4,613 |
|
|
|
3,366 |
|
|
|
12,801 |
|
|
|
7,279 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Stock – based
compensation |
|
|
(3,513 |
) |
|
|
(2,724 |
) |
|
|
(6,370 |
) |
|
|
(7,735 |
) |
|
One-time expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(29 |
) |
|
Net Cash G&As
expenses (excluding one-time expenses) |
|
$ |
10,806 |
|
|
$ |
9,689 |
|
|
$ |
33,199 |
|
|
$ |
26,264 |
|
|
|
|
|
|
|
|
|
|
|
|
Ownership days |
|
|
10,685 |
|
|
|
9,039 |
|
|
|
30,096 |
|
|
|
22,213 |
|
|
Charter-in days |
|
|
2,372 |
|
|
|
1,511 |
|
|
|
5,581 |
|
|
|
3,596 |
|
|
Average daily Net Cash
G&A expenses per vessel (excluding one-time
expenses) |
|
$ |
828 |
|
|
$ |
918 |
|
|
$ |
931 |
|
|
$ |
1,018 |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, November 21, 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 (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 "Star Bulk."
A telephonic replay of the conference call will
be available until Thursday, November 27, 2019 by dialing 1(866)
331‐1332 (US Toll Free Dial In), 0(808) 238‐0667 (UK Toll Free Dial
In) or +44 (0) 3333009785 (Standard International Dial In). Access
Code: 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”. Star Bulk owns a fleet of 118
vessels, with an aggregate capacity of 13.0 million dwt, consisting
of 17 Newcastlemax, 19 Capesize, 2 Mini Capesize, 7 Post Panamax,
35 Kamsarmax, 2 Panamax, 17 Ultramax and 19 Supramax vessels with
carrying capacities between 52,055 dwt and 209,537 dwt.
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 BornozisMarkella KaraCapital Link,
Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661‐7566E‐mail: starbulk@capitallink.com
www.capitallink.com
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