Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2013 Results and Declares Quarterly Dividend on Common Stock
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 11/04/13 -- Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three- and nine-months period ended September 30, 2013. The Board of Directors of the Company also declared a quarterly dividend of $0.06 per share of common stock for the third quarter of 2013.
Net revenue for the third quarter of 2013 decreased by 10% to $41.9 million from $46.8 million during the same period in 2012.
Net income for the third quarter of 2013 decreased by 44% to $11.6 million from $20.7 million, during the same period in 2012. Adjusted net income(1) for the third quarter of 2013 decreased by 43% to $13.1 million from $22.8 million, during the same period in 2012.
EBITDA(2) for the third quarter of 2013 decreased by 25% to $23.4 million from $31.4 million during the same period in 2012. Adjusted EBITDA(1) for the third quarter of 2013 decreased by 26% to $24.8 million from $33.4 million during the same period in 2012.
Earnings per share ("EPS") and Adjusted EPS(1) for the third quarter of 2013 were $0.14 and $0.16 respectively, calculated on a weighted average number of shares of 76,684,316, compared to $0.27 and $0.30 in the third quarter 2012, calculated on a weighted average number of shares of 76,658,865.
The Board of Directors of the Company declared a dividend of $0.06 per share of common stock for the third quarter of 2013.
Net revenue for the first nine months of 2013 decreased by 8% to $127.5 million from $138.0 million during the same period in 2012.
Net income for the first nine months of 2013 decreased by 18% to $52.2 million from $63.9 million. Adjusted net income(1) for the first nine months of 2013 decreased by 36% to $44.1 million from $69.3 million, during the same period in 2012.
EBITDA(2) for the first nine months of 2013 decreased by 7% to $87.0 million from $93.7 million during the same period in 2012. Adjusted EBITDA(1) for the first nine months of 2013 decreased by 20% to $78.9 million from $99.1 million during the same period in 2012.
EPS and Adjusted EPS(1) for the first nine months of 2013 were $0.67 and $0.56, respectively, calculated on a weighted average number of shares of 76,679,082, compared to $0.85 and $0.92 in the first nine months of 2012, calculated on a weighted average number of shares of 75,066,388.
In July 2013, the Company took delivery of the Zoe, (Hull No. 814), a 75,000 dwt, Japanese, newbuild, Panamax class vessel, for a purchase price of $29.5 million.
In July 2013, the Company took delivery of the Xenia, a 2006 Japanese built 87,000 dwt, post- Panamax class vessel, for a purchase price of $19.5 million.
In September 2013, the Company entered into an agreement with a Japanese shipyard for the construction of an eco-design, 76,500 dwt, Panamax class vessel at a price of $28 million, scheduled to be delivered during the first half of 2015. Upon delivery from the shipyard the vessel is expected to be employed under a period time charter, for a total duration of ten years at a net daily charter rate of $15,800 for the first five years, and $15,000 for the second five years. The Company also holds the option, upon completion of the first five years of the time charter, to terminate the time charter and sell the vessel.
In October 2013, the Company entered into shipbuilding contracts with a Japanese shipyard, for the construction of two eco-design, 77,000 dwt, Panamax class vessels at a price of $30.0 million and $30.2 million. The first vessel is scheduled for delivery during the second half of 2015 and the second vessel is scheduled for delivery during the first half of 2016.
As of November 1, 2013, the Company's operational fleet was comprised of 28 drybulk vessels with an average age of 5.4 years and an aggregate carrying capacity of 2.5 million dwt. The fleet consists of eight Panamax class vessels, seven Kamsarmax class vessels, eleven post- Panamax class vessels and two Capesize class vessels, all built 2003 onwards.
As of November 1, 2013, the Company had contracted to acquire ten additional drybulk newbuild vessels, with deliveries scheduled at various dates through 2016. The orderbook consists of seven Panamax class vessels, two Post-Panamax class vessels and one Capesize class vessel.
Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of November 1, 2013:
1) For newbuilds, the dates shown reflect the expected delivery date.
2) Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable. Charter agreements may provide for additional payments, namely ballast bonus, to compensate for vessel repositioning.
3) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of November 1, 2013, scheduled start dates. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.
4) Following the early redelivery of the Maritsa, in January 2013 the Company received a cash compensation payment of $13.1 million, which will be amortized over the period of the new period time charter with the same charterer. The agreed gross daily charter rate is $8,000 for the period until January 2015.
5) A period time charter with at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium of 9.5%.
6) A period time charter with at a gross daily charter rate linked to the BPI plus a premium of 6.5%.
7) The charter agreement grants the charterer the option to extend the period time charter for an additional twelve months at a time, at a gross daily charter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times. The charter agreement also grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the period time charter period, at a price of $39 million less 1.00% commission, decreasing thereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel and subsequently offers to sell such vessel to a third party.
8) Change of Hull Number of vessels 2396 and 2397 to 1685 and 1686 respectively.
The contracted employment of fleet ownership days is:
2013 (remaining) .......................79%
2013 (full year) .........................96%
2014 .......................................37%
2015 .......................................15%
As of September 30, 2013, the Company had contracted to acquire eight newbuild vessels. The remaining capital expenditure requirements to shipyards or sellers, for the delivery of these eight newbuilds amounted to $220.2 million, of which $19.4 million is scheduled to be paid in 2013, $111.2 million is scheduled to be paid in 2014 and $89.6 million is scheduled to be paid in 2015.
As of September 30, 2013, the Company had liquidity of $218.9 million consisting of $21.2 million in cash and short-term time deposits, $9.0 million in short-term restricted cash, $3.9 million in long-term restricted cash, $65.8 million available under existing revolving credit facilities, $79.0 million under committed loan facilities for two existing and two newbuild vessels, and $40.0 million undrawn availability against a $50.0 million floating rate note held by the Company.
Additionally, the Company continues to utilize the surplus from its operations to fund its capital expenditure requirements and is able to borrow additional amounts secured by its debt-free newbuild vessels, upon the delivery of such vessels to the Company as and if required.
The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.06 per share payable on or about December 6, 2013 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 22, 2013.
The Company has 76,686,484 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) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company's existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or not be paid in the future.
Dr. Loukas Barmparis, President of the Company, said: "We have increased our dividend to reflect the improving climate in the charter market. We have substantial and increasing exposure in the spot market as many long duration period time charters contracted during the 2007-2008 period expire. We have also entered into additional contracts for the construction of eco-design newbuild vessels by Japanese shipyards aiming to renew and gradually expand our fleet at an early stage of the forthcoming shipping cycle."
On Tuesday, November 5, 2013 at 9:00 A.M. EST, 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 November 15, 2013 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 44% to $11.6 million for the third quarter of 2013 from $20.7 million for the third quarter of 2012, mainly due to the following factors:
Net revenues: Net revenues decreased by 10% to $41.9 million for the third quarter of 2013, compared to $46.8 million for the same period in 2012, mainly due to weak charter market conditions. The Company operated 27.43 vessels on average during the third quarter of 2013, earning a TCE(3) rate of $15,264, compared to 21.47 vessels and a TCE rate of $22,534 during the same period in 2012.
Vessel operating expenses: Vessel operating expenses increased by 29% to $10.7 million for the third quarter of 2013, compared to $8.3 million for the same period in 2012. The increase in operating expenses is mainly attributable to an increase in ownership days by 28% to 2,524 days for the third quarter of 2013 from 1,975 days for the same period in 2012.
Voyage expenses: Voyage expenses increased to $3.4 million for the third quarter of 2013, compared to $2.3 million for the same period in 2012, as a result of increase in ballast days for repositioning of vessels due to higher exposure to the spot charter market.
Depreciation: Depreciation increased to $9.6 million for the third quarter of 2013, compared to $8.3 million for the same period in 2012, as a result of the increase in the average number of vessels operated by the Company.
Loss on derivatives: Loss on derivatives decreased to $1.5 million in the third quarter of 2013, compared to a loss of $2.1 million for the same period in 2012, 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 3.0 years as of September 30, 2013. 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 to $2.1 million for the third quarter of 2013 compared to $2.3 million the same period in 2012.
Daily vessel operating expenses(4): Daily vessel operating expenses increased by 2% to $4,249 for the third quarter of 2013, compared to $4,185 for the same period in 2012. The increase is mainly attributable to an increase in spare parts and tonnage tax expenses.
Daily general and administrative expenses(4): Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs payable to third parties in relation to our operation as a public company, decreased by 12% to $1,071 for the third quarter of 2013, compared to $1,217 for the same period in 2012. The decrease is mainly attributable to a higher number of ownership days.
(1) Adjusted net income, Adjusted EPS and Adjusted EBITDA are non-GAAP measures and represent net income, EPS and EBITDA before early redelivery income, gain/(loss) on derivatives and foreign currency respectively. See Table 1.
(2) EBITDA is a non-GAAP measure and represents net income before interest expense, income tax expense, depreciation and amortization. See Table 1.
(3) Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
(4) See Table 2.
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS are not recognized measurements under US GAAP.
Adjusted Net Income represents net income before early redelivery income, gain/(loss) on derivatives and foreign currency.
Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.
EBITDA represents net income before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before early redelivery income, gain/(loss) on derivatives and foreign currency. 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 of 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, Adjusted Net Income available to common shareholders 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, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS 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.
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(1) Ownership days represent the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
(2) Available days represent the total number of days in a period during which each vessel in our fleet was in our possession net of off-hire days associated with scheduled maintenance, which includes major repairs, drydockings, vessel upgrades or special or intermediate surveys.
(3) Operating days represent the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, excluding scheduled maintenance.
(4) Fleet utilization is calculated by dividing the number of our operating days during a period by the number of our ownership days during that period.
(5) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(6) Time charter equivalent rates, or TCE rates, represent our charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
(7) Daily vessel operating expenses include the costs for crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance, statutory and classification expense, drydocking, intermediate and special surveys and other miscellaneous items. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.
(8) Daily general and administrative expenses include daily fixed and variable management fees payable to our Manager and daily costs in relation to our operation as a public company. Daily general and administrative expenses are calculated by dividing general and administrative expenses by ownership days for the relevant period.
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 and series B preferred stock are listed on the NYSE, where they trade under the symbols "SB" and "SB.PR.B", respectively. The Company's current fleet consists of 28 drybulk vessels, all built 2003 onwards, and the Company has contracted to acquire ten additional drybulk newbuild vessels to be delivered at various dates through 2016.
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.
For further information please contact:
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel.: +30 2 111 888 400
Fax: +30 2 111 878 500
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:
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Datum: 04.11.2013 - 15:02 Uhr
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