Safe Bulkers, Inc. Reports Third Quarter and Nine Months 2017 Results
(firmenpresse) - MONACO -- (Marketwired) -- 10/31/17 -- 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, 2017.
Net revenue for the third quarter of 2017 increased by 38% to $37.3 million from $27.1 million during the same period in 2016.
Net income for the third quarter of 2017 was $6.7 million as compared to net loss of $24.5 million, during the same period in 2016. Adjusted net loss(1) for the third quarter of 2017 was $1.8 million as compared to $9.0 million, during the same period in 2016.
EBITDA(2) for the third quarter of 2017 amounted to earnings of $27.4 million as compared to a loss of $6.2 million during the same period in 2016. Adjusted EBITDA(3) for the third quarter of 2017 increased by 103% to $18.9 million from $9.3 million during the same period in 2016.
Earnings per share(4) and Adjusted loss per share(4) for the third quarter of 2017 were $0.04 and $0.05 respectively, calculated on a weighted average number of 101,521,234 shares, as compared to a Loss per share of $0.34 and Adjusted loss per share of $0.15 during the same period in 2016, calculated on a weighted average number of 83,601,283 shares.
Net revenues for the nine months of 2017 increased by 35% to $105.7 million from $78.1 million during the same period in 2016.
Net income for the nine months of 2017 was $1.9 million as compared to a net loss of $51.3 million, during the same period in 2016. Adjusted net loss for the nine months of 2017 was $7.1 million as compared to $32.0 million, during the same period in 2016.
EBITDA for the nine months of 2017 increased to $59.8 million as compared to $2.5 million during the same period in 2016. Adjusted EBITDA for the nine months of 2017 increased by 133% to $50.8 million as compared to $21.8 million during the same period in 2016.
Loss per share(4) and Adjusted loss per share for the nine months of 2017 were $0.10 and $0.19, respectively, calculated on a weighted average number of shares of 100,731,192, as compared to loss per share of $0.74 and Adjusted loss per share of $0.51 during the same period in 2016, calculated on a weighted average number of shares of 83,573,418.
(1) Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, gain/(loss) on derivatives, gain on loan write off, early redelivery cost, other operating income, impairment loss 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, gain on debt extinguishment, other operating income, early redelivery cost, impairment loss 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 and deemed dividend divided by the weighted average number of shares respectively. See Table 1.
As of October 25, 2017, our operational fleet comprised of 38 drybulk vessels with an average age of 7.3 years and an aggregate carrying capacity of 3.4 million dwt. Our fleet consists of 14 Panamax class vessels, nine Kamsarmax class vessels, 12 post-Panamax class vessels and three Capesize class vessels, all built 2003 onwards. Taking into account our last contracted drybulk newbuild Kamsarmax class vessel, scheduled for delivery in 2018, our fleet will comprise of 39 vessels, 11 of which will be eco-design vessels, with an aggregate carrying capacity of 3.5 million dwt, assuming no additional vessel acquisitions or disposals.
Set out below is a table showing the Company''s existing and newbuild vessels and their contracted employment as of October 25, 2017:
The contracted employment of fleet ownership days as of October 25, 2017 was:
The remaining order book consisted of one newbuild vessel; our wholly-owned subsidiary Pinewood Shipping Corporation has contracted to acquire Hull No. 1552 with scheduled delivery date in 2018 and has agreed to issue $16.9 million of preferred equity to an unaffiliated investor upon delivery.
The remaining capital expenditure requirements amounted to $27.8 million consisting of $0.5 million payable in 2017 and $27.3 million payable in 2018.
We had liquidity of $80.2 million, consisting of $69.9 million in cash and bank time deposits and $10.3 million in restricted cash.
In addition we have secured $16.9 million of preferred equity financing for Hull 1552 and have the capacity to borrow against one unencumbered vessel.
In June 2017, we exercised options under the sale and leaseback agreements to purchase two Kamsarmax class vessels at an aggregate predetermined price of $43.8 million, terminating the relevant bareboat charters representing an annualized cash outflow of $4.7 million. The transaction consummated in September 2017 and the Company financed the acquisition of the vessels through cash on hand and new credit facilities.
The sale and leaseback transaction had been accounted as a financing transaction. The outstanding obligation of these two vessels amounted to $41.8 million as of the transaction date. Deferred finance costs of $1.4 million were written off upon the consummation of the transaction.
In September 2017, we successfully concluded the settlement of $74.9 million loans outstanding at a discount, with a new loan facility of $49.6 million and cash on hand of US$17.1 million, resulting in a net gain on debt extinguishment of $8.2 million.
The Board of Directors of the Company has not declared a dividend to its common stock holders for the third quarter of 2017. The Company had 101,526,708 shares of common stock issued and outstanding as of October 25, 2017.
The Company declared in October a cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.B), on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C) and on its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D) for the period from July 30, 2017 to October 29, 2017 payable on October 30, 2017 to the respective shareholders of record as of October 23, 2017.
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 and leverage 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: "Highlights of the third quarter include, improvement of our capital structure towards reducing finance costs and our break-even point, continuous reduction of adjusted losses per share in an improving charter market and for the first time after several quarters, earnings per share on unadjusted basis, taking into account the write off of $8.2 million of debt."
On November 1, 2017 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 November 10, 2017 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 for the third quarter of 2017 was $6.7 million compared to net loss of $24.5 million during the same period in 2016, mainly due to the following factors:
Net revenues: Net revenues increased by 38% to $37.3 million for the third quarter of 2017, compared to $27.1 million for the same period in 2016, mainly due to an increase in charter rates and to a lesser extent an increase in the average number of vessels. The Company operated 38.00 vessels on average during the third quarter of 2017, earning a TCE(6) rate of $10,419, compared to 36.97 vessels and a TCE rate of $7,637 during the same period in 2016.
Vessel operating expenses: Vessel operating expenses, which include dry-docking cost and initial supplies expenses, increased by 9% to $13.4 million for the third quarter of 2017, compared to $12.3 million for the same period in 2016, as a result of the average number of vessels increasing by 3% to 38.00 vessels, from 36.97 vessels respectively and increased maintenance and spare parts costs partly offset by no dry-docking costs incurred for the third quarter of 2017, compared to one during the third quarter of 2016.
Gain on debt extinguishment: In September 2017, the Company entered into a discount settlement agreement with the lenders to prepay and settle loans amounting to $74.9 million at a discount which resulted in a net gain of $8.2 million. The settlement was funded from a new loan facility of $49.6 million and cash on hand of US$17.1 million.
Interest expenses: Interest expense increased to $6.1 million in the third quarter of 2017, compared to $4.8 million for the same period in 2016, as a result of the increase in the weighted average loan outstanding and the increase in the weighted average interest rate of our loans and credit facilities.
Daily vessel operating expenses(5): Daily vessel operating expenses, which are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period, increased by 6% to $3,830 for the third quarter of 2017 compared to $3,617 for the same period in 2016, due to increased maintenance and spare parts costs.
Daily general and administrative expenses(5): Daily general and administrative expenses, which include management fees payable to our Managers(7) decreased by 3% to $1,163 for the third quarter of 2017, compared to $1,196 for the same period in 2016.
(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) 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 loss and Adjusted loss per share are not recognized measurements under US GAAP.
- EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization.
- Adjusted EBITDA represents EBITDA before loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment, other operating income/(expense), early redelivery cost, impairment loss and gain/(loss) on foreign currency.
- Adjusted Net loss represents Net loss before loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment, other operating income/(expense), early redelivery cost, impairment loss and gain/(loss) on foreign currency.
- Adjusted Loss per share represents Adjusted Net loss less preferred dividend and preferred deemed dividend divided by the weighted average number of shares.
EBITDA, Adjusted EBITDA, Adjusted Net loss and Adjusted loss per share are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Company believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Company believes that including these supplemental financial measures assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our financial and operational performance in assessing whether to continue investing in us. The Company believes that EBITDA, Adjusted EBITDA, Adjusted Net loss and Adjusted loss per share are useful in evaluating the Company''s operating performance from period to period because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, the calculation of Adjusted EBITDA generally further eliminates the effects from loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. Furthermore, the calculation of Adjusted Net loss generally eliminates the effects of loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) 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, Adjusted EBITDA, Adjusted Net Loss 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 Adjusted Net income/(loss) and Adjusted Earnings/(loss) per share, 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. In evaluating Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted Earnings/(loss) per share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA, Adjusted Net Loss and Adjusted Loss per share should not be construed as an inference that our future results will be unaffected by the excluded items.
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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.
Tel.: +30 2 111 888 400
+357 25 887 200
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: 31.10.2017 - 15:05 Uhr
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