Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers”, or the
“Company”), today reported its results for the three months ended
March 31, 2018.
The Company also announced today that its Board
of Directors has declared a quarterly cash dividend of $0.02 per
share on the Company’s common stock.
Results for the Three Months Ended
March 31, 2018 and 2017
For the first quarter of 2018, the Company’s
GAAP net loss was $5.8 million, or $0.08 loss per diluted
share. For the same period in 2017, the Company’s GAAP net
loss was $34.6 million, or $0.48 loss per diluted share.
Total vessel revenues for the first quarter of 2018 were $54.3
million, compared to $34.7 million for the same period in 2017.
Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) for the first quarter of 2018 and 2017 were $20.4
million and a loss of $10.8 million, respectively (see Non-GAAP
Financial Measures below).
While the first quarter of 2018 included no
non-GAAP adjustments to net income, the Company’s first quarter
2017 net income included a loss/write off of vessels and assets
held for sale of $17.7 million and the write off of deferred
financing costs on the credit facility related to those specific
vessels of $0.5 million. Excluding these items, the
Company’s first quarter 2017 adjusted net loss was $16.4
million, or $0.22 adjusted loss per diluted share.
Adjusted EBITDA for the first quarter ended March 31, 2017 was a
loss of $6.9 million (see Non-GAAP Financial Measures below).
TCE Revenue
TCE Revenue Earned during the First Quarter of
2018
- Our Kamsarmax fleet earned $12,881 per day
- Our Ultramax fleet earned $9,757 per day
Voyages Fixed thus far for the Second Quarter of 2018
- Kamsarmax fleet: approximately $13,250 per day for 56% of the
days
- Ultramax fleet: approximately $11,925 per day for 48% of the
days
Cash and Cash Equivalents
As of April 20, 2018, the Company had
approximately $55.0 million in cash and cash equivalents.
Recent Significant Events
Share Repurchase Program
During the first quarter of 2018, the Company
repurchased approximately 1.2 million shares of its common stock
under the Board of Directors authorized stock repurchase program at
a cost of approximately $8.6 million, or at an average cost of
$7.39 per share, which was funded from available cash
resources. As of April 20, 2018, approximately $30.4 million
of the $50.0 million authorized remains available for the
repurchase of the Company’s common stock in open market or
privately negotiated transactions. The specific timing and
amounts of any repurchases will be in the sole discretion of
management and may vary based on market conditions and other
factors and the Company is not obligated under the terms of the
program to repurchase any of its common stock. The
authorization has no expiration date.
Dividend
In the first quarter of 2018, the Company’s
Board of Directors declared and the Company paid a quarterly cash
dividend of $0.02 per share totaling approximately $1.5
million.
On April 20, 2018, the Company’s Board of
Directors declared a quarterly cash dividend of $0.02 per share,
payable on or about May 31, 2018, to all shareholders of record as
of May 15, 2018. As of April 20, 2018, 75,971,175 shares were
outstanding.
Debt
$12.8 Million Credit
Facility
On April 3, 2018, the Company received a
commitment for a loan facility of up to $12.75 million from a
leading European financial institution to finance the Company’s
Kamsarmax bulk carrier to be delivered from Jiangsu New Yangzijiang
Shipbuilding Co Ltd in China in the third quarter of 2018. The loan
facility will have a final maturity date of June 15, 2023 and bears
interest at LIBOR plus a margin of 2.40% per annum. The terms and
conditions will be similar to those set forth in the Company's
existing credit facilities. The loan facility is subject to
customary conditions precedent and the execution of definitive
documentation.
$19.0 Million Lease Financing
On April 17, 2018, the Company entered into a
financing transaction in respect of one of its Ultramax vessels
with an unaffiliated third party involving the sale and leaseback
of the SBI Tango, a 2015 Japanese built Ultramax vessel, for
consideration of approximately $19.0 million. As part of
the transaction, the Company will make payments of $5,400 per
day under a five-year bareboat charter agreement with the
buyer. If converted to floating interest rates, based on the
expected weighted average life of the transaction, the equivalent
cost of financing at the then prevailing swap rates would be LIBOR
+ 1.73%.
The transaction also provides the Company with
options to repurchase the vessel beginning on the third anniversary
of the sale until the end of the bareboat charter agreement. This
transaction, which shall be treated as a financial lease for
accounting purposes, increases the Company’s liquidity by
approximately $10.3 million after repayment of the vessel’s
existing loan.
Debt Overview
The Company’s outstanding debt balance, gross of
unamortized deferred financing costs as of March 31, 2018 and
April 20, 2018, are as follows (dollars in thousands):
|
|
As of March 31, 2018 |
|
As of April 20, 2018 |
Credit Facility |
|
Amount Outstanding |
|
Amount Outstanding |
|
Amount Committed |
Senior Notes |
|
$ |
73,625 |
|
|
$ |
73,625 |
|
|
$ |
— |
|
$409 Million Credit
Facility |
|
171,549 |
|
|
171,549 |
|
|
— |
|
$330 Million Credit
Facility |
|
241,746 |
|
|
241,746 |
|
|
— |
|
$42 Million Credit
Facility * |
|
22,354 |
|
|
22,354 |
|
|
— |
|
$67.5 Million Credit
Facility |
|
39,459 |
|
|
39,247 |
|
|
— |
|
$12.5 Million Credit
Facility |
|
9,988 |
|
|
9,988 |
|
|
— |
|
$27.3 Million Credit
Facility |
|
17,825 |
|
|
17,825 |
|
|
— |
|
$85.5 Million Credit
Facility |
|
83,868 |
|
|
83,868 |
|
|
— |
|
$38.7 Million Credit
Facility |
|
37,800 |
|
|
37,800 |
|
|
|
$19.6 Million Lease
Financing |
|
18,978 |
|
|
18,978 |
|
|
— |
|
$12.8 Million Credit
Facility ** |
|
— |
|
|
— |
|
|
12,750 |
|
$19.0 Million Lease
Financing |
|
— |
|
|
— |
|
|
19,000 |
|
Total |
|
$ |
717,192 |
|
|
$ |
716,980 |
|
|
$ |
31,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* $8.2 million to be repaid upon the drawdown of the
$19.0 Million Lease Financing |
** Reflects the maximum loan amount available on undrawn
vessel. |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s projected quarterly debt
repayments on our bank loans and senior notes and bareboat charter
payments on our finance leases through 2019 are as follows (dollars
in thousands):
|
|
Principal on Bank Loans and Senior
Notes |
|
Finance Lease |
|
Total |
Q2 2018
(1) |
|
$20,196 |
|
|
$821 |
|
|
$21,017 |
|
Q3
2018 |
|
|
11,729 |
|
|
|
986 |
|
|
|
12,715 |
|
Q4
2018 |
|
|
11,494 |
|
|
|
986 |
|
|
|
12,480 |
|
Q1
2019 |
|
|
10,791 |
|
|
|
986 |
|
|
|
11,777 |
|
Q2
2019 |
|
|
10,833 |
|
|
|
986 |
|
|
|
11,819 |
|
Q3 2019
(2) |
|
|
84,466 |
|
|
|
986 |
|
|
|
85,452 |
|
Q4
2019 |
|
|
12,795 |
|
|
|
986 |
|
|
|
13,781 |
|
Total |
|
$162,304 |
|
|
$6,737 |
|
|
$169,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Relates to payments expected to be made from April 21, 2018 to June
30, 2018 and includes $8.2 million to be repaid upon the drawdown
of the $19.0 Million Lease Financing. |
(2)
Includes $73.6 million repayment of Senior Notes due at
maturity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results for the Three Months
Ended March 31, 2018 Compared to the Three Months Ended March
31, 2017
For the first quarter of 2018, the Company’s
GAAP net loss was $5.8 million, or $0.08 loss per diluted
share. For the same period in 2017, the Company’s GAAP net
loss was $34.6 million, or $0.48 loss per diluted share.
Earnings before interest, taxes, depreciation and amortization for
the first quarters of 2018 and 2017 were $20.4 million and a loss
of $10.8 million, respectively (see Non-GAAP Financial Measures).
Excluding the loss/write off of vessels and assets held for sale
of $17.7 million and the write off of deferred financing costs
on the credit facility related to those specific vessels
of $0.5 million, the Company’s adjusted net loss for the
first quarter of 2017 was $16.4 million,
or $0.22 adjusted loss per diluted share (see Non-GAAP
Financial Measures below). There were no such non-GAAP adjustments
to the Company’s first quarter 2018 net income.
Total vessel revenues for the first quarter of
2018 were $54.3 million, an increase of $19.6 million from $34.7
million in the first quarter of 2017. Our TCE revenue (see Non-GAAP
Financial Measures) for the first quarter of 2018 was $54.1
million, an increase of $19.4 million from the first quarter of
2017. First quarter 2018 revenues were driven by high levels
of demand for coal and grains for the better part of the
quarter.
Total operating expenses for the first quarter
of 2018 were $49.8 million compared to $60.9 million in the first
quarter of 2017. The quarter over quarter decrease relates to
the loss/write off of vessels and assets held for sale
of $17.7 million recorded in the first quarter of 2017, offset
in part by increases in vessel operating costs and depreciation
resulting from the increase in the size of our fleet.
Ultramax Operations
|
Three Months Ended March 31, |
|
|
|
|
Dollars in
thousands |
2018 |
|
2017 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
33,330 |
|
|
$ |
19,760 |
|
|
$ |
13,570 |
|
|
69 |
|
Voyage
expenses |
128 |
|
|
49 |
|
|
79 |
|
|
161 |
|
TCE
Revenue |
$ |
33,202 |
|
|
$ |
19,711 |
|
|
$ |
13,491 |
|
|
68 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
17,236 |
|
|
12,145 |
|
|
5,091 |
|
|
42 |
|
Charterhire expense |
915 |
|
|
10 |
|
|
905 |
|
|
NA |
|
Vessel
depreciation |
9,190 |
|
|
7,023 |
|
|
2,167 |
|
|
31 |
|
General
and administrative expense |
1,073 |
|
|
839 |
|
|
234 |
|
|
28 |
|
Total operating expenses |
$ |
28,414 |
|
|
$ |
20,017 |
|
|
$ |
8,397 |
|
|
42 |
|
Operating
income (loss) |
$ |
4,788 |
|
|
$ |
(306 |
) |
|
$ |
5,094 |
|
|
1,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel revenue for our Ultramax Operations
increased to $33.3 million for the first quarter of 2018 from $19.8
million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures)
for our Ultramax Operations was $33.2 million for the first quarter
of 2018 and was associated with a day-weighted average of 37
vessels owned and one time chartered-in vessel, compared to $19.7
million for the prior year period, which was associated with a
day-weighted average of 28 vessels owned. TCE revenue per day was
$9,757 and $8,230 for the three months ended March 31, 2018
and 2017, respectively. The market in the first quarter was
comparatively strong to previous year’s with two major factors
keeping levels buoyant. A strong Atlantic U.S. Gulf market in the
fourth quarter of 2017 was sustained well into February 2018 due to
strong coal exports and residual grain movement coupled with strong
Pacific coal imports from Indonesia to China at the beginning of
March 2018.
Dollars in
thousands |
Three Months Ended March 31, |
|
|
|
|
Ultramax
Operations: |
2018 |
|
2017 |
|
Change |
|
% Change |
TCE Revenue |
$ |
33,202 |
|
|
$ |
19,711 |
|
|
$ |
13,491 |
|
|
68 |
|
TCE Revenue / Day |
$ |
9,757 |
|
|
$ |
8,230 |
|
|
$ |
1,527 |
|
|
19 |
|
Revenue Days |
3,403 |
|
|
2,395 |
|
|
1,008 |
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Our Ultramax Operations vessel operating costs
were $17.2 million for the first quarter of 2018, including
approximately $0.9 million of takeover costs and contingency
expenses and related to 37 vessels owned, on average during the
period. Vessel operating costs for the prior year period were
$12.1 million and related to 28 vessels owned, on average during
the period. Daily operating costs excluding other non-operating
expenses for the first quarters of 2018 and 2017 were $4,909 and
$4,929, respectively. Sequentially, daily operating costs
increased from $4,749 in the fourth quarter of 2017 due in large
part to seasonality.
Charterhire expense for our Ultramax Operations
was approximately $0.9 million for the first quarter of 2018, and
relates to the vessel we have time chartered-in at $10,125 per
day.
Ultramax Operations depreciation increased to
$9.2 million in the first quarter of 2018 from $7.0 million in the
prior year period reflecting the increase in our weighted average
vessels owned to 37 from 28.
General and administrative expense for our
Ultramax Operations was $1.1 million for the first quarter of 2018
and $0.8 million in the prior year period. General and
administrative expenses consist primarily of administrative service
fees, which are incurred on a per vessel per day basis, and bank
charges, which are incurred based on the number of
transactions. The increase versus the prior year period
reflects the growth of our fleet.
Kamsarmax Operations
|
Three Months Ended March 31, |
|
|
|
|
Dollars in
thousands |
2018 |
|
2017 |
|
Change |
|
% Change |
TCE
Revenue: |
|
|
|
|
|
|
|
Vessel
revenue |
$ |
20,923 |
|
|
$ |
14,968 |
|
|
$ |
5,955 |
|
|
40 |
|
Voyage
expenses |
68 |
|
|
68 |
|
|
— |
|
|
— |
|
TCE
Revenue |
$ |
20,855 |
|
|
$ |
14,900 |
|
|
$ |
5,955 |
|
|
40 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Vessel
operating costs |
8,571 |
|
|
9,661 |
|
|
(1,090 |
) |
|
(11 |
) |
Charterhire expense |
90 |
|
|
1,961 |
|
|
(1,871 |
) |
|
(95 |
) |
Vessel
depreciation |
4,678 |
|
|
4,559 |
|
|
119 |
|
|
3 |
|
General
and administrative expense |
507 |
|
|
536 |
|
|
(29 |
) |
|
(5 |
) |
Loss /
write down on assets held for sale |
— |
|
|
17,131 |
|
|
(17,131 |
) |
|
(100 |
) |
Total operating expenses |
$ |
13,846 |
|
|
$ |
33,848 |
|
|
$ |
(20,002 |
) |
|
(59 |
) |
Operating
income (loss) |
$ |
7,009 |
|
|
$ |
(18,948 |
) |
|
$ |
25,957 |
|
|
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel revenue for our Kamsarmax Operations
increased to $20.9 million in the first quarter of 2018 from $15.0
million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures)
for our Kamsarmax Operations was $20.9 million for the first
quarter of 2018 and was associated with a day-weighted average of
18 vessels owned, compared to $14.9 million for prior year period,
which was associated with a day-weighted average of 19 vessels
owned and one vessel time chartered-in. TCE revenue per day was
$12,881 and $9,164 for the first quarters of 2018 and 2017,
respectively. The Kamsarmax market in the first quarter of 2018 was
the best it has experienced in recent history. Initially mineral
driven; in the Atlantic with significant exports from the East
Coast of the U.S. and Colombia into Europe and India, in the
Pacific due to strong Chinese pre-Chinese New Year imports, as well
as Indian coal imports from Indonesia and Australia. After the
Chinese New Year, activity started to slow down but expectations of
a strong second quarter of 2018, driven by grain expectations, kept
curves in contango and allowed owners to achieve premium rates for
longer employments.
Dollars in
thousands |
Three Months Ended March 31, |
|
|
|
|
Kamsarmax
Operations: |
2018 |
|
2017 |
|
Change |
|
% Change |
TCE Revenue |
$ |
20,855 |
|
|
$ |
14,900 |
|
|
$ |
5,955 |
|
|
40 |
|
TCE Revenue / Day |
$ |
12,881 |
|
|
$ |
9,164 |
|
|
$ |
3,717 |
|
|
41 |
|
Revenue Days |
1,619 |
|
|
1,626 |
|
|
(7 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kamsarmax Operations vessel operating costs were
$8.6 million for the first quarter of 2018, including approximately
$0.2 million of contingency expenses, related to 18 vessels owned,
on average during the period. Vessel operating costs for the prior
year period were $9.7 million and related to 19 vessels owned, on
average during the period. Daily operating costs excluding takeover
and other non-operating expenses for the first quarters of 2018 and
2017 were $5,172 and $5,207, respectively. Sequentially, daily
operating costs increased from $4,943 in the fourth quarter of 2017
due in large part to seasonality.
While we do not time charter-in any Kamsarmax
vessels, we have a profit and loss sharing agreement with a third
party and during the first quarter of 2018, our share of the loss
on that vessel was $0.1 million. During the prior year period, two
Kamsarmax vessels were time chartered-in resulting in charterhire
expense of $2.0 million.
Kamsarmax Operations depreciation remained
relatively flat at $4.7 million in the first quarter 2018 compared
to $4.6 million in the prior year period. Our weighted
average vessels owned was 18 and 19, in the first quarter of 2018
and 2017, respectively.
General and administrative expense for our
Kamsarmax Operations was $0.5 million for both the first quarters
of 2018 and 2017. The expense consists primarily of
administrative services fees, which are incurred on a per vessel
per day basis, and bank charges, which are incurred based on the
number of transactions.
During the first quarter of 2017, we recorded a write down on
assets held for sale of $17.1 million related to the sale
of two Kamsarmax vessels to an unaffiliated third party.
Corporate
Certain general and administrative expenses we
incur and all of our financial expenses are not attributable to a
specific segment. Accordingly, these costs are not allocated
to any of our segments. These general and administrative expenses,
including compensation, audit, legal and other professional fees,
as well as the costs of being a public company, such as director
fees, were $7.3 million and $6.4 million in the first quarters of
2018 and 2017, respectively.
Financial expenses increased to $10.2 million in
the first quarter of 2018 from $8.4 million in the prior year
period due to an increase in the LIBOR rate and higher levels of
debt. During the first quarter of 2017, we wrote off $0.5
million of deferred financing costs accumulated on credit
facilities for which the related vessels were sold.
Scorpio Bulkers Inc. and Subsidiaries |
Consolidated Statements of Operations |
(Amounts in thousands, except per share
data) |
|
|
|
Unaudited |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
Vessel
revenue |
|
$ |
54,253 |
|
|
$ |
34,728 |
|
Operating
expenses: |
|
|
|
|
Voyage
expenses |
|
196 |
|
|
117 |
|
Vessel
operating costs |
|
25,806 |
|
|
21,801 |
|
Charterhire expense |
|
1,005 |
|
|
1,971 |
|
Vessel
depreciation |
|
13,868 |
|
|
11,582 |
|
General
and administrative expenses |
|
8,910 |
|
|
7,728 |
|
Loss /
write down on assets held for sale |
|
— |
|
|
17,702 |
|
Total operating
expenses |
|
49,785 |
|
|
60,901 |
|
Operating
income (loss) |
|
4,468 |
|
|
(26,173 |
) |
Other income
(expense): |
|
|
|
|
Interest
income |
|
214 |
|
|
262 |
|
Foreign
exchange loss |
|
(87 |
) |
|
(94 |
) |
Financial
expense, net |
|
(10,367 |
) |
|
(8,559 |
) |
Total other
expense |
|
(10,240 |
) |
|
(8,391 |
) |
Net
loss |
|
$ |
(5,772 |
) |
|
$ |
(34,564 |
) |
|
|
|
|
|
Loss per common share -
basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.48 |
) |
Weighted-average shares
outstanding - basic and diluted |
|
72,702 |
|
|
71,735 |
|
|
|
|
|
|
|
|
Scorpio Bulkers Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(Dollars in thousands) |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
March 31, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
52,788 |
|
|
$ |
68,535 |
|
Accounts
receivable |
|
9,282 |
|
|
7,933 |
|
Prepaid
expenses and other current assets |
|
6,922 |
|
|
6,087 |
|
Total current
assets |
|
68,992 |
|
|
82,555 |
|
Non-current assets |
|
|
|
|
Vessels,
net |
|
1,521,073 |
|
|
1,534,782 |
|
Vessels
under construction |
|
9,717 |
|
|
6,710 |
|
Deferred
financing costs, net |
|
2,811 |
|
|
3,068 |
|
Other
assets |
|
16,095 |
|
|
16,295 |
|
Total
non-current assets |
|
1,549,696 |
|
|
1,560,855 |
|
Total
assets |
|
$ |
1,618,688 |
|
|
$ |
1,643,410 |
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Bank
loans, net |
|
$ |
44,707 |
|
|
$ |
46,993 |
|
Capital
lease obligation |
|
1,156 |
|
|
1,144 |
|
Accounts
payable and accrued expenses |
|
11,858 |
|
|
10,453 |
|
Total current
liabilities |
|
57,721 |
|
|
58,590 |
|
Non-current
liabilities |
|
|
|
|
Bank
loans, net |
|
567,119 |
|
|
576,967 |
|
Capital
lease obligation |
|
17,447 |
|
|
17,747 |
|
Senior
Notes, net |
|
72,856 |
|
|
72,726 |
|
Total non-current
liabilities |
|
657,422 |
|
|
667,440 |
|
Total liabilities |
|
715,143 |
|
|
726,030 |
|
Shareholders’
equity |
|
|
|
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no
shares issued or outstanding |
|
— |
|
|
— |
|
Common stock, $0.01 par value per share; authorized 112,500,000
shares; issued and outstanding 75,971,175 and 74,902,364 shares as
of March 31, 2018 and December 31, 2017, respectively |
|
785 |
|
|
762 |
|
Paid-in
capital |
|
1,746,403 |
|
|
1,745,844 |
|
Common
stock held in treasury, at cost; 2,635,413 and 1,465,448 shares at
March 31, 2018 and December 31, 2017, respectively |
|
(19,649 |
) |
|
(11,004 |
) |
Accumulated deficit |
|
(823,994 |
) |
|
(818,222 |
) |
Total shareholders’
equity |
|
903,545 |
|
|
917,380 |
|
Total
liabilities and shareholders’ equity |
|
$ |
1,618,688 |
|
|
$ |
1,643,410 |
|
|
|
|
|
|
|
|
|
|
Scorpio Bulkers Inc. and
Subsidiaries |
Statements of Cash Flows (unaudited) |
(Amounts in thousands) |
|
|
|
|
|
For the Three Months Ended March
31, |
|
|
2018 |
|
2017 |
Operating
activities |
|
|
|
|
Net loss |
|
$ |
(5,772 |
) |
|
$ |
(34,564 |
) |
Adjustment to
reconcile net loss to net cash used by |
|
|
|
|
operating activities: |
|
|
|
|
Restricted stock amortization |
|
2,125 |
|
|
3,862 |
|
Vessel
depreciation |
|
13,868 |
|
|
11,582 |
|
Amortization of deferred financing costs |
|
1,482 |
|
|
1,360 |
|
Write off
of deferred financing costs |
|
— |
|
|
470 |
|
Loss /
write down on assets held for sale |
|
— |
|
|
16,471 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
(Decrease) increase in accounts receivable |
|
(1,349 |
) |
|
1,337 |
|
Increase
in prepaid expenses and other assets |
|
(635 |
) |
|
(697 |
) |
Increase
(decrease) in accounts payable and accrued expenses |
|
1,405 |
|
|
(1,556 |
) |
Net cash
provided by (used in) operating activities |
|
11,124 |
|
|
(1,735 |
) |
Investing
activities |
|
|
|
|
Payments
for vessels and vessels under construction |
|
(3,166 |
) |
|
(22,421 |
) |
Net cash used
in investing activities |
|
(3,166 |
) |
|
(22,421 |
) |
Financing
activities |
|
|
|
|
Proceeds
from issuance of long-term debt |
|
— |
|
|
51,600 |
|
Repayments of long-term debt |
|
(13,431 |
) |
|
(2,580 |
) |
Common
stock repurchased |
|
(8,645 |
) |
|
— |
|
Dividend
paid |
|
(1,542 |
) |
|
— |
|
Debt
issue costs paid |
|
(87 |
) |
|
— |
|
Net cash (used
in) provided by financing activities |
|
(23,705 |
) |
|
49,020 |
|
(Decrease) increase in
cash and cash equivalents |
|
(15,747 |
) |
|
24,864 |
|
Cash at cash
equivalents, beginning of period |
|
68,535 |
|
|
101,734 |
|
Cash and cash
equivalents, end of period |
|
$ |
52,788 |
|
|
$ |
126,598 |
|
|
|
|
|
|
|
|
|
|
Scorpio Bulkers Inc. and
Subsidiaries |
Other Operating Data (unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Time
charter equivalent revenue ($000’s) (1): |
|
|
|
|
Vessel
revenue |
|
$ |
54,253 |
|
|
$ |
34,728 |
|
Voyage
expenses |
|
(196 |
) |
|
(117 |
) |
Time
charter equivalent revenue |
|
$ |
54,057 |
|
|
$ |
34,611 |
|
Time
charter equivalent revenue attributable to: |
|
|
|
|
Kamsarmax |
|
$ |
20,855 |
|
|
$ |
14,900 |
|
Ultramax |
|
33,202 |
|
|
19,711 |
|
|
|
$ |
54,057 |
|
|
$ |
34,611 |
|
Revenue
days: |
|
|
|
|
Kamsarmax |
|
1,619 |
|
|
1,626 |
|
Ultramax |
|
3,403 |
|
|
2,395 |
|
Combined |
|
5,022 |
|
|
4,021 |
|
TCE per
revenue day (1): |
|
|
|
|
Kamsarmax |
|
$ |
12,881 |
|
|
$ |
9,164 |
|
Ultramax |
|
$ |
9,757 |
|
|
$ |
8,230 |
|
Combined |
|
$ |
10,764 |
|
|
$ |
8,608 |
|
|
|
|
|
|
|
|
|
|
(1) We
define Time Charter Equivalent (TCE) revenue as vessel revenues
less voyage expenses. Such TCE revenue, divided by the number
of our available days during the period, or revenue days, is TCE
per revenue day, which is consistent with industry standards.
TCE per revenue day is a common shipping industry performance
measure used primarily to compare daily earnings generated by
vessels on time charters with daily earnings generated by vessels
on voyage charters, because charter hire rates for vessels on
voyage charters are generally not expressed in per-day amounts
while charter hire rates for vessels on time charters generally are
expressed in such amounts. |
|
|
|
|
|
|
|
|
|
We report
TCE revenue, a non-GAAP financial measure, because (i) we
believe it provides additional meaningful information in
conjunction with vessel revenues and voyage expenses, the most
directly comparable U.S.-GAAP measure, (ii) it assists our
management in making decisions regarding the deployment and use of
our vessels and in evaluating their financial performance,
(iii) it is a standard shipping industry performance measure
used primarily to compare period-to-period changes in a shipping
company’s performance irrespective of changes in the mix of charter
types (i.e., spot charters, time charters and bareboat charters)
under which the vessels may be employed between the periods, and
(iv) we believe that it presents useful information to
investors. See Non-GAAP Financial Measures. |
|
|
|
|
|
|
|
|
|
Fleet List as of April 20,
2018
Vessel Name |
|
Year Built |
|
DWT |
|
Vessel Type |
SBI Samba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Rumba |
|
2015 |
|
84,000 |
|
|
Kamsarmax |
SBI Capoeira |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Electra |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Carioca |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Conga |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Flamenco |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Bolero |
|
2015 |
|
82,000 |
|
|
Kamsarmax |
SBI Sousta |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Rock |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Lambada |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Reggae |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Zumba |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Macarena |
|
2016 |
|
82,000 |
|
|
Kamsarmax |
SBI Parapara |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Mazurka |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Swing |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
SBI Jive |
|
2017 |
|
82,000 |
|
|
Kamsarmax |
Total Kamsarmax |
|
|
|
1,480,000 |
|
|
|
|
|
|
|
|
|
|
SBI Antares |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Athena |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Bravo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Leo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Echo |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Lyra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Tango |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Maia |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Hydra |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Subaru |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Pegasus |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Ursa |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Thalia |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Cronos |
|
2015 |
|
61,000 |
|
|
Ultramax |
SBI Orion |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Achilles |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Hercules |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Perseus |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Hermes |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Zeus |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hera |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Hyperion |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Tethys |
|
2016 |
|
61,000 |
|
|
Ultramax |
SBI Phoebe |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Poseidon |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Apollo |
|
2016 |
|
60,200 |
|
|
Ultramax |
SBI Samson |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Phoenix |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Gemini |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Libra |
|
2017 |
|
64,000 |
|
|
Ultramax |
SBI Puma |
|
2014 |
|
64,000 |
|
|
Ultramax |
SBI Jaguar |
|
2014 |
|
64,000 |
|
|
Ultramax |
SBI Cougar |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Aries |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Taurus |
|
2015 |
|
64,000 |
|
|
Ultramax |
SBI Pisces |
|
2016 |
|
64,000 |
|
|
Ultramax |
SBI Virgo |
|
2017 |
|
64,000 |
|
|
Ultramax |
Total Ultramax |
|
|
|
2,307,800 |
|
|
|
Total Owned or Finance Leased Vessels DWT |
|
3,787,800 |
|
|
|
Time chartered-in vessels
The Company currently time
charters-in one Ultramax vessel. The terms of the
contract are summarized as follows:
Vessel Type |
|
Year Built |
|
DWT |
|
Country of Build |
|
Daily Base Rate |
|
Earliest Expiry |
Ultramax |
|
2017 |
|
62,100 |
|
|
Japan |
|
$ |
10,125 |
|
|
30-Sep-19 |
|
(1 |
) |
Total TC DWT |
|
|
|
62,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This
vessel is time chartered-in for 22 to 24 months at the Company’s
option at $10,125 per day. The Company has the option to extend
this time charter for one year at $10,885 per day. The vessel was
delivered to the Company in September 2017. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Under Construction
Kamsarmax Vessel
Vessel Name |
|
Expected Delivery |
|
DWT |
|
Shipyard |
Hull 2215 - TBN SBI
Lynx |
|
Q3-18 |
|
82,000 |
|
|
Jiangsu Yangzijiang Shipbuilding Co. Ltd. |
Total Kamsarmax Newbuilding DWT |
|
82,000 |
|
|
|
|
|
|
|
|
|
Conference Call on Results:
A conference call to discuss the Company’s
results will be held today, Monday, April 23, 2018, at 11:00 AM
Eastern Daylight Time / 5:00 PM Central European Summer Time.
Those wishing to listen to the call should dial 1 (866) 219-5268
(U.S.) or 1 (703) 736-7424 (International) at least 10 minutes
prior to the start of the call to ensure connection. The conference
participant passcode is 2560928.
There will also be a simultaneous live webcast
over the internet, through the Scorpio Bulkers Inc. website
www.scorpiobulkers.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.Webcast URL:
https://edge.media-server.com/m6/p/28u2nckc
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine
transportation of dry bulk commodities. Scorpio Bulkers Inc.
has an operating fleet of 56 vessels consisting of 55 wholly-owned
or finance leased drybulk vessels (including 18 Kamsarmax vessels
and 37 Ultramax vessels), and one
time chartered-in Ultramax vessel. In addition, one
Kamsarmax vessel which is being constructed at Jiangsu New
Yangzijiang Shipbuilding Co Ltd in China is expected to be
delivered to the Company in the third quarter of 2018. Upon final
delivery of the last vessel, the Company’s owned and finance leased
fleet is expected to have a total carrying capacity of
approximately 3.9 million dwt and all of the Company’s owned
vessels will have carrying capacities of greater than 60,000 dwt.
Additional information about the Company is available on the
Company’s website www.scorpiobulkers.com, which is not a part of
this press release.
Non-GAAP Financial Measures
To supplement our financial information
presented in accordance with accounting principles generally
accepted in the U.S., (“GAAP”), management uses certain “non-GAAP
financial measures” as such term is defined in Regulation G
promulgated by the SEC. Generally, a non-GAAP financial measure is
a numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with GAAP. Management
believes the presentation of these measures provides investors with
greater transparency and supplemental data relating to our
financial condition and results of operations, and therefore a more
complete understanding of factors affecting our business than GAAP
measures alone. In addition, management believes the
presentation of these matters is useful to investors for
period-to-period comparison of results as the items may reflect
certain unique and/or non-operating items such as asset sales,
write-offs, contract termination costs or items outside of
management’s control.
Earnings before interest, taxes, depreciation
and amortization (“EBITDA”), adjusted net loss and related per
share amounts, as well as adjusted EBITDA and TCE Revenue are
non-GAAP performance measures that we believe provide investors
with a means of evaluating and understanding how the Company’s
management evaluates the Company’s operating performance.
These non-GAAP financial measures should not be considered in
isolation from, as substitutes for, nor superior to financial
measures prepared in accordance with GAAP. Please see below
for reconciliations of EBITDA, adjusted net loss and related per
share amounts, and adjusted EBITDA. Please see “Other
Operating Data” for a reconciliation of TCE revenue.
EBITDA (unaudited)
|
For the Three Months Ended March
31, |
In
thousands |
2018 |
|
2017 |
Net
loss |
$ |
(5,772 |
) |
|
(34,564 |
) |
Add
Back: |
|
|
|
Net
interest expense |
8,671 |
|
|
6,467 |
|
Depreciation and amortization (1) |
17,475 |
|
|
17,275 |
|
EBITDA |
$ |
20,374 |
|
|
(10,822 |
) |
|
|
|
|
|
|
|
(1) Includes depreciation, amortization of deferred financing
costs and restricted stock amortization. |
|
|
|
|
|
|
|
Adjusted net loss (unaudited)
|
For the Three Months Ended March 31, |
In
thousands, except per share data |
2017 |
|
Amount |
|
Per share |
Net
loss |
$ |
(34,564 |
) |
|
$ |
(0.48 |
) |
Adjustments: |
|
|
|
Loss /
write down on assets held for sale |
17,702 |
|
|
0.25 |
|
Write
down of deferred financing cost |
470 |
|
|
0.01 |
|
Total
adjustments |
$ |
18,172 |
|
|
$ |
0.26 |
|
Adjusted net loss |
$ |
(16,392 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
Adjusted EBITDA (unaudited)
|
|
|
For the Three Months Ended March 31, |
|
In
thousands |
|
2017 |
Net
loss |
|
$ |
(34,564 |
) |
Impact of
Adjustments |
|
18,172 |
|
Adjusted net loss |
|
(16,392 |
) |
Add
Back: |
|
|
Net
interest expense |
|
6,467 |
|
Depreciation and amortization (1) |
|
16,805 |
|
Adjusted EBITDA |
|
$ |
6,880 |
|
|
|
|
|
|
(1)
Includes depreciation, amortization of deferred financing costs and
restricted stock amortization. |
|
|
|
|
|
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,” “intend,” “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, our management’s examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe 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 our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the failure of counterparties to fully perform
their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for dry bulk
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, 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,
vessels breakdowns and instances of off-hires and other
factors. Please see our filings with the Securities and
Exchange Commission for a more complete discussion of these and
other risks and uncertainties.
Contact:
Scorpio Bulkers Inc.
+377-9798-5715 (Monaco)
+1-646-432-1675 (New York)
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