Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2011 Results and Declares Quarterly Dividend
(firmenpresse) - ATHENS, GREECE -- (Marketwire) -- 10/17/11 -- Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three and nine month period ended September 30, 2011. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the thirdquarter of 2011.
Net revenue for the third quarter of 2011 increased by 4% to $42.5 million from $40.8 million during the same period in 2010.
Net income for the third quarter of 2011 decreased by 10% to $19.8 million from $22.0 million during the same period in 2010. Adjusted net income(1) for the third quarter of 2011 decreased slightly to $25.9 million from $26.1 million during the same period in 2010.
EBITDA(2) for the third quarter of 2011 decreased by 7% to $26.6 million from $28.6 million during the same period in 2010. Adjusted EBITDA(1) for the third quarter of 2011 increased slightly to $32.8 million from $32.7 million during the same period in 2010.
Earnings per share ("EPS") and Adjusted EPS(1) for the third quarter of 2011 of $0.28 and $0.37 respectively, calculated on a weighted average number of shares of 70,889,569, compared to $0.33 and $0.40 in the third quarter 2010, calculated on a weighted average number of shares of 65,874,601.
The Company's Board of Directors declared a dividend of $0.15 per share for the third quarter of 2011.
Net revenue for the first nine months of 2011 increased by 9% to $126.0 million from $115.7 million during the same period in 2010.
Net income for the first nine months of 2011 decreased by 16% to $66.2 million from $78.5 million during the same period in 2010. Adjusted net income(1) for the first nine months of 2011 increased by 3% to $78.8 million from $76.2 million during the same period in 2010.
EBITDA(2) for the first nine months of 2011 decreased by 9% to $86.6 million from $95.5 million during the same period in 2010. Adjusted EBITDA(1) for the first nine months of 2011 increased by 6% to $99.2 million from $93.2 million during the same period in 2010.
EPS and Adjusted EPS(1) for the first nine months of 2011 of $0.96 and $ 1.14, respectively, calculated on a weighted average number of shares of 68,980,741, compared to $1.26 and $1.22 in the first nine months of 2010, calculated on a weighted average number of shares of 62,431,775.
(1) Adjusted net income, Adjusted EPS and Adjusted EBITDA represent Net Income, EPS and EBITDA before gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency respectively. See Table 1.
(2) EBITDA represents net income plus interest expense, tax, depreciation and amortization. See Table 1.
On September 9, 2011, the Company took delivery of the MV Venus History, a Japanese-built, Post-Panamax class newbuild vessel.
As of October 15, 2011, the Company's operational fleet was comprised of 17 drybulk vessels with an average age of 4.3 years.
The Company has contracted to acquire 10 additional drybulk newbuild vessels with deliveries scheduled at various times through 2014. The newbuild vessels consist of 4 Panamax vessels with delivery dates 1 in the first half of 2012, 1 in the second half of 2013 and 2 in the first half of 2014; 3 Kamsarmax vessels with delivery dates in the first half of 2012; 1 Post-Panamax vessel with delivery date in the first half of 2012; and 2 Capesize vessels, 1 in the second half of 2011 and the other in the second half of 2012.
As of October 15, 2011, the contracted employment of fleet ownership days for the remainder of 2011 was 81%. For the full years 2011, 2012 and 2013, the contracted employment of fleet ownership days was 96%, 67% and 57%, respectively. Contracted employment includes vessels which are scheduled to be delivered to us in the future.
The remaining capital expenditure requirements net of commissions for the delivery of the 10 newbuilds amounted to $276.7 million, of which $48.3 million is scheduled to be paid in 2011, $148.0 million in 2012, $25.6 million in 2013 and $54.8 million in 2014. We anticipate satisfying these capital expenditure requirements from existing cash and time deposits, operating cash surplus and existing undrawn loan facilities.
The Company had $28.1 million in cash and short-term time deposits, $5.4 million in long-term restricted cash and $50.0 million in a long-term floating rate note, from which it may borrow up to 80% under certain conditions. Additionally, the Company had an aggregate of $180.0 million in undrawn loan and credit facilities and commitments for two existing vessels and three newbuild vessels and $48.4 million available from existing revolving reducing credit facilities.
Apart from the above loan and credit facilities and commitments, the Company will be able to borrow against seven debt-free newbuild vessels, on which additional financing may be contracted as and if required.
The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.15 per share payable on or about November 30, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on November 23, 2011.
The Company has 70,891,916 shares of common stock issued and outstanding as of today's date.
The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) our earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in our existing and future debt instruments and (v) global financial conditions. We can give no assurance that dividends will be paid in the future.
Dr. Loukas Barmparis, President of the Company, said: "We are pleased to announce that our Board of Directors has declared our fourteenth consecutive dividend since our IPO. We believe our financial position is supported by our charter coverage and fleet expansion. We believe our capital expenditure requirements are fully covered by our available liquidity while upon delivery of all our newbuilds, seven brand new vessels are expected to be debt-free. We continue to implement our newbuilding program and we may pursue further attractive vessel acquisition opportunities with new vessel designs currently under development by leading shipyards, complying with upcoming regulations and incorporating technology advancements providing for energy efficiency and environmental protection expanding and renewing our current fleet."
On Tuesday, October 18, 2011 at 9:00 A.M. EDT, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). to the operator.
A telephonic replay of the conference call will be available until October 28, 2011 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Net income decreased by 10% to $19.8 million for the third quarter of 2011 from $22.0 million for the third quarter of 2010, mainly due to the following factors:
Net revenues: Net revenues increased by 4% to $42.5 million for the third quarter of 2011 compared to $40.8 million for the same period in 2010, mainly due to an increased number of operating days partly offset by average lower charter rates. The Company operated 16.24 vessels on average during the third quarter of 2011, earning a time charter equivalent ("TCE") rate of $28,312, compared to 15.00 vessels and a TCE rate of $29,605 during the same period in 2010.
Vessel operating expenses: Vessel operating expenses increased by 12% to $6.6 million for the third quarter of 2011 compared to $5.9 million for the same period in 2010. The increase in operating expenses is mainly attributable to an increase in ownership days by 8% to 1,494 days for the third quarter of 2011 from 1,380 days for the same period in 2010. Daily vessel operating expenses increased by 3% to $4,426 for the third quarter of 2011 compared to $4,294 for the same period in 2010, mainly due to increase of crewing and insurance costs.
Depreciation: Depreciation increased to $5.8 million for the third quarter of 2011 compared to $5.2 million for the same period in 2010, as a result of the increase in the average number of vessels operated by the Company during the third quarter of 2011.
Loss on derivatives: Loss on derivatives increased to $6.2 million in the third quarter of 2011 compared to a loss of $3.9 million for the same period in 2010, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that we employ to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.7 years as of September 30, 2011. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
Interest expense: Interest expense decreased by 39% to $1.1 million in the third quarter of 2011 from $1.8 million for the same period in 2010, attributable to the declining US dollar interest rates and a decrease in the average outstanding indebtedness.
Other finance costs: Other finance costs increased to $0.7 million for the third quarter of 2011 compared to approximately zero for the same period in 2010, as a result of the increase in legal and commitment fees of new credit facilities during the third quarter of 2011.
_____________
EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency. EBITDA and adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and adjusted EBITDA information. The Company believes that EBITDA and adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of adjusted EBITDA generally further eliminates the effects from gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under US GAAP and should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and adjusted EBITDA are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Set out below is a table showing our existing vessels and their contracted employment.
The contracted charter coverage including newbuilds, based on the Company's best estimates as of October 15, 2011, is:
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services. The Company's common stock is listed on the NYSE, where it trades under the symbol "SB". The Company's current fleet consists of 17 drybulk vessels, all built post-2003, and the Company has contracted to acquire 10 additional drybulk newbuild vessels to be delivered at various times through 2014.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel.: +30 (210) 899-4980
Fax: +30 (210) 895-4159
E-Mail:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, N.Y. 10169
Tel.: (212) 661-7566
Fax: (212) 661-7526
E-Mail:
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 17.10.2011 - 14:05 Uhr
Sprache: Deutsch
News-ID 1046718
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
ATHENS, GREECE
Phone:
Kategorie:
Maritime
Anmerkungen:
Diese Pressemitteilung wurde bisher 159 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2011 Results and Declares Quarterly Dividend
"
steht unter der journalistisch-redaktionellen Verantwortung von
Safe Bulkers, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
