Safe Bulkers, Inc. Reports Second Quarter and Six Months 2016 Results
(firmenpresse) - MONACO -- (Marketwired) -- 07/28/16 -- 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 six months period ended June 30, 2016.
Net revenue for the second quarter of 2016 decreased by 18% to $26.2 million from $31.8 million during the same period in 2015.
Net loss for the second quarter of 2016 was $9.0 million as compared to $4.4 million, during the same period in 2015. Adjusted net loss(1) for the second quarter of 2016 was $8.7 million as compared to $3.9 million, during the same period in 2015.
EBITDA(2) for the second quarter of 2016 decreased by 17% to $8.4 million as compared to $10.1 million during the same period in 2015. Adjusted EBITDA(3) for the second quarter of 2016 decreased by 18% to $8.8 million from $10.7 million during the same period in 2015.
Loss per share(4) and Adjusted loss per share(4) for the second quarter of 2016 were $0.15 and $0.15 respectively, calculated on a weighted average number of 83,571,957 shares, as compared to a Loss per share of $0.10 and Adjusted loss per share of $0.09 during the same period in 2015, calculated on a weighted average number of 83,470,867 shares.
Net revenues for the six months of 2016 decreased by 20% to $50.9 million from $63.9 million during the same period in 2015.
Net loss for the six months of 2016 was $26.8 million as compared to $10.5 million, during the same period in 2015. Adjusted net loss(1) for the six months of 2016 was $23.0 million as compared to $8.4 million, during the same period in 2015.
EBITDA(2) for the six months of 2016 decreased by 51% to $8.7 million as compared to $17.6 million during the same period in 2015. Adjusted EBITDA(3) for the six months of 2016 decreased by 37% to $12.5 million as compared to $19.7 million during the same period in 2015.
Loss per share(4) and Adjusted loss per share(4) for the six months of 2016 were $0.40 and $0.36, respectively, calculated on a weighted average number of shares of 83,557,124, as compared to Loss per share(4) of $0.21 and Adjusted Loss per share(4) of $0.19 during the same period in 2015, calculated on a weighted average number of shares of 83,466,487.
In July 2016, the Company took delivery of Kypros Spirit (Hull No. 828), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.
As of July 25, 2016, the Company''s operational fleet comprised of 37 drybulk vessels with an average age of 6.24 years and an aggregate carrying capacity of 3.3 million dwt. The fleet consists of 14 Panamax class vessels, 8 Kamsarmax class vessels, 12 Post-Panamax class vessels and 3 Capesize class vessels, all built from 2003 onwards.
As of July 25, 2016, the Company had contracted to acquire 4 eco-design newbuild vessels, comprised of one Japanese Panamax class vessel, two Japanese Kamsarmax class vessels and one Chinese Kamsarmax class vessel. Upon delivery of all newbuilds and assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 41 vessels, 14 of which will be eco-design vessels, having an aggregate carrying capacity of 3.7 million dwt.
The table below shows the contracted employment of the Company''s vessels as of July 25, 2016:
The contracted employment of fleet ownership days as of July 25, 2016 was:
As of July 25, 2016, the Company had agreed to acquire four newbuild vessels, with three to be delivered in 2017, and one to be delivered in 2018. The remaining capital expenditure requirements to shipyards or sellers before minor adjustments for shipyards'' costs relating to certain delayed deliveries for the four vessels amounted to $97.5 million, of which $7.1 million is due in 2016, $68.6 million is due in 2017 and $21.8 million is due in 2018.
As of July 25, 2016, the Company had liquidity of $169.7 million consisting of $95.7 million in cash and bank time deposits, $17.2 million in restricted cash and $56.8 million available under committed loan facilities and financing transactions.
As of July 25, 2016, the Company has refinanced or accepted term sheets, to amend certain financial covenants and terms of its credit, term and loan agreements, in an aggregate amount of $471.9 million, representing 100% of our debt, excluding sale and lease back financing arrangements and debt from State institutions, resulting in the deferral of an aggregate of $35.2 million of annual principal instalments that were due until 2018 after 2019.
The old and the new aggregate repayment schedules for these facilities are presented in the table below:
The Board of Directors of the Company has not declared a dividend for the second quarter of 2016. The Company had 83,477,862 shares of common stock issued and outstanding as of July 25, 2016.
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 economic and financial conditions.
Dr. Loukas Barmparis, President of the Company, said: "We have concluded refinancing agreements of $471.9 million of our debt with all our lenders excluding sale and lease back and debt from State institutions and deferring an aggregate of $35.2 million of principal annual installments after 2019, preserving our liquidity. Our daily vessel operating expenses,(5) including dry docking cost and initial supplies expenses were $3,814 for the second quarter of 2016 in line with our continued cost reduction initiatives. Our Time Charter Equivalent rate for the second quarter of 2016, of $7,675 per day is higher than the aggregate of our daily vessel operating expenses and our daily general and administrative expenses(5) which totaled $4,929, adding to our liquidity."
On Friday, July 29, 2016 at 8:30 A.M. Eastern Time, the Company''s management team will host a conference call to discuss the Company''s 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 August 5, 2016 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 loss for the second quarter of 2016 was $9.0 million compared to net loss of $4.4 million during the same period in 2015, mainly due to the following factors:
Net revenues: Net revenues decreased by 18% to $26.2 million for the second quarter of 2016, compared to $31.8 million for the same period in 2015, mainly due to a decrease in charter rates. The Company operated 36.00 vessels on average during the second quarter of 2016, earning a TCE(6) rate of $7,675, compared to 34.14 vessels and a TCE rate of $8,615 during the same period in 2015.
Vessel operating expenses: Vessel operating expenses, which include dry-docking cost and initial supplies expenses, decreased by 1% to $12.5 million for the second quarter of 2016 compared to $12.6 million for the same period in 2015, while the average number of vessels increased by 5% to 36.00 vessels, from 34.14 vessels respectively. The decrease in operating expenses is due to a decrease in spares, store and various other operating expenses. Vessel operating expenses for the second quarter of 2016 included the cost of one dry-docking, compared to zero during second quarter of 2015.
Depreciation: Depreciation increased to $12.3 million for the second quarter of 2016, compared to $11.6 million for the same period in 2015, as a result of the increase in the average number of vessels operated by the Company during the second quarter of 2016.
Loss on derivatives: Loss on derivatives was $0.3 million in the second quarter of 2016, compared to a loss of $0.2 million for the same period in 2015, 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 part of the interest rate exposure of the Company''s aggregate loans outstanding. The average remaining period of our swap contracts was 1.5 years as of June 30, 2016. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
Voyage expenses: Voyage expenses decreased to $1.2 million for the second quarter of 2016 compared to $5.1 million for the same period in 2015, mainly due to a decrease in vessel repositioning expenses affected by lower fuel prices.
Interest expenses: Interest expense increased to $4.9 million in the second quarter of 2016 compared to $2.4 million for the same period in 2015, mainly as a result of the four-vessel sale and leaseback transactions concluded in September 2015, which led to the increase in the average outstanding amount of loans and credit facilities and to the weighted average interest rate of such loans and credit facilities.
Daily vessel operating expenses(7): Daily vessel operating expenses which include dry-docking cost and initial supplies expenses, were reduced by 6% to $3,814 for the second quarter of 2016 compared to $4,048 for the same period in 2015 as a result of reduced vessel operating expenses due to continued cost reduction initiatives.
Daily general and administrative expenses(7): Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Managers(8) and daily costs incurred in relation to our operation as a public company, were $1,115 for the second quarter of 2016, compared to $1,087 for the same period in 2015.
(1) Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency. See Table 1.
(2) EBITDA is a non-GAAP measure and represents Net income/(loss) plus net interest expense, tax, depreciation and amortization. See Table 1.
(3) Adjusted EBITDA is a non-GAAP measure and represents EBITDA before loss on sale of assets, gain/( loss) on derivatives, loss from inventory valuation and gain/(loss) on foreign currency. See Table 1.
(4) Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net income/(loss) and Adjusted Net income/(loss) less preferred dividend divided by the weighted average number of shares respectively. See Table 1.
(5) See Table 2
(6) Time charter equivalent rates, or TCE rate, represents the Company''s charter revenues less commissions and voyage expenses during a period divided by the number of our available days during such period.
(7) See Table 2.
(8) Safety Management Overseas S.A. and Safe Bulkers Management Limited, each a related party referred in this press release as "our Manager" and collectively "our Managers".
EBITDA, Adjusted EBITDA, Adjusted Net Income/(loss), Adjusted Net income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share are not recognized measurements under US GAAP.
Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency. Adjusted Net income/(loss) available to common shareholders represents Adjusted Net income/(loss) less Preferred dividend.
EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on 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 loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss), Adjusted Net income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share 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. EBITDA and Adjusted EBITDA 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.
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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, series B preferred stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D", respectively.
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 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: 28.07.2016 - 14:05 Uhr
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