Safe Bulkers, Inc. Reports Fourth Quarter and Twelve Months 2015Results
Wednesday, February 10, 2016 5:00:34 PM ET Safe Bulkers, Inc. (the "Company") (SB ), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three and twelve month period
ended December 31, 2015.
Summary of Fourth Quarter 2015 Results
-- Net revenue for the fourth quarter of 2015 decreased by 24% to $29.9
million from $39.1 million during the same period in 2014.
-- Net loss for the fourth quarter of 2015 was $29.9 million as compared
to $0.1 million, during the same period in 2014. Adjusted net loss(1)
for the fourth quarter of 2015 was $7.7 million as compared to
Adjusted net income(1) of $4.7 million, during the same period in
2014.
-- EBITDA(2) for the fourth quarter of 2015 decreased to $13.1 million
loss as compared to earnings of $13.4 million during the same period
in 2014. Adjusted EBITDA(3) for the fourth quarter of 2015 decreased
by 50% to $9.1 million from $18.3 million during the same period in
2014.
-- Loss per share(4) and Adjusted loss per share(4) for the fourth
quarter of 2015 were $0.40 and $0.13, respectively, calculated on a
weighted average number of shares of 83,504,266, as compared to a Loss
per share of $0.04 and Adjusted earnings per share of $0.01 during the
same period in 2014, calculated on a weighted average number of shares
of 83,454,102.
Summary of Twelve Months Ended December 31, 2015 Results
-- Net revenues for the twelve months of 2015 decreased by 17% to $127.3
million as compared to $154.1 million during the same period in 2014.
-- Net loss for the twelve months of 2015 was $47.9 million from net
income of $14.6 million during the same period in 2014. Adjusted net
loss for the twelve months of 2015 was $22.4 million as compared to
Adjusted net income of $17.5 million, during the same period in 2014.
-- EBITDA for the twelve months of 2015 decreased by 80% to $13.5 million
as compared to $66.7 million during the same period in 2014. Adjusted
EBITDA for the twelve months of 2015 decreased by 44% to $39.1 million
as compared to $69.6 million during the same period in 2014.
-- Loss per share and Adjusted Loss per share for the twelve months of
2015 were $0.74 and $0.44, respectively, calculated on a weighted
average number of shares of 83,479,636, as compared to Earnings per
share(4) ("EPS") of $0.06 and Adjusted EPS(4) of $0.10 during the same
period in 2014, calculated on a weighted average number of shares of
83,446,970.
(1) Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net
income/(loss) represents Net income/(loss) before gain on asset
purchase cancellation, early redelivery cost, loss from inventory
valuation, impairment loss, 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
gain on asset purchase cancellation, early redelivery cost,
gain/(loss) on derivatives, loss from inventory valuation, 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 divided by the weighted average number of shares
respectively. See Table 1.
Fleet and Employment Profile
Vessel Deliveries: In January 2016, the Company took delivery of
Troodos Sun (Hull No. 1686), a 85,000 dwt, Japanese eco-design
newbuild Post-Panamax class vessel. Upon her delivery, the vessel was
employed in the spot charter market.
Vessel Sales: In February 2016, subsidiaries of the Company entered
into agreements for the sale of the Stalo, an 87,000 dwt Post-Panamax
vessel built in 2006, and the Kypros Unity, a 78,000 dwt Panamax
vessel built in 2014, to entities controlled by Mr. Hajioannou, our
Chairman and Chief Executive Officer. In addition, another company
controlled by Mr. Hajioannou assumed the obligations of one of the
Company’s subsidiaries under a shipbuilding contract for Hull No.
1718, a 84,000 dwt, Japanese eco-design newbuild Post-Panamax
scheduled for delivery in the first half of 2019. Another company
controlled by Mr. Hajioannou is currently in negotiations to assume
the Company’s obligations under a shipbuilding contract for Hull No.
1552, a 81,600 dwt, Japanese eco-design newbuild Kamsarmax scheduled
for delivery in the first half of 2018.
These transactions were negotiated and approved by a Special
Committee of the Company’s Board of Directors, composed of the
Board’s independent members and advised by independent counsel. The
Special Committee was formed and authorized by the Board of Directors
of the Company to evaluate and negotiate the transactions when Mr.
Hajioannou’s proposal with respect to these proposed transactions was
received. The Special Committee obtained two appraisals from
independent third party brokers for each of the two vessels and for
each of the two newbuildings, and negotiated the terms of the sales
of the vessels and the contract novations.
The sale price for the Stalo was $9.0 million in cash, which
represents the higher of the two appraisals for that vessel, and the
price for the Kypros Unity was $20.0 million in cash, which likewise
represented the higher of the two appraisals for that vessel that the
Special Committee had obtained. Both vessels are operating in the
spot market and expect to be delivered to the buyer in March 2016.
The subsidiary of the Company that owns the Kypros Unity has an
outstanding loan balance of $16.7 million, net of deferred finance
charges, which is secured by the vessel and which will be repaid
prior to its delivery to the buyer. The remaining capital expenditure
requirements of the Company under the shipbuilding contract for Hull
No. 1718 were $28.4 million compared to $26.5 million, the higher of
its two appraisals obtained for such newbuild. The sale commissions
of 1% of the contract prices payable to the related party management
company(5) on the three transactions have been waived.
The remaining capital expenditure requirements of the Company under
the shipbuilding contract for Hull No. 1552 are $28.5 million.
The sale of the Stalo and of the Kypros Unity and the novation of
Hull No. 1718 will result in: (i) a $28.4 million reduction in the
Company’s capital expenditure obligations; (ii) a reduction in the
Company’s existing indebtedness of $16.7 million, net of deferred
finance charges; and (iii) an improvement of $12.3 million in the
Company’s liquidity. An aggregate non-cash impairment loss of $22.8
million was recorded as of December 31, 2015, with respect to the
sale of the Stalo and of the Kypros Unity; the novation of Hull No.
1718 and the novation under negotiation of Hull No. 1552.
(5) 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".
Current Fleet: As of February 5, 2016, the Company’s operational
fleet comprised of 37 drybulk vessels two of which have been agreed
to be sold, with an average age of 6.1 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 February 5, 2016, the Company had contracted to acquire six
eco-design newbuild vessels. The newbuild vessels comprising two
Japanese Panamax class vessels, one Japanese Post-Panamax class
vessel, two Japanese Kamsarmax class vessels (one of which is under
negotiations to be novated) and one Chinese Kamsarmax class vessel.
Upon delivery of all of these newbuilds, assuming the successful
conclusion of the novation under negotiation and assuming we do not
acquire any additional vessels or dispose of any of our vessels, our
fleet will comprise of 40 vessels, 13 of which will be eco-design
vessels, having an aggregate carrying capacity of 3.6 million dwt.
As of February 5, 2016, 16 out of 37 drybulk vessels of the Company
were employed under period time charters of more than three months
outstanding charter duration. The table below shows the contracted
employment of the Company’s vessels as of February 5, 2016:
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Charter
Vessel Name DWT Year Country of Rate(2) Charter
Built(1) construction USD/day Duration(3)
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Panamax
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Aug 2015 -
Maria 76,000 2003 Japan 8,250 Jun 2016
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Sep 2015 -
Koulitsa 76,900 2003 Japan 7,650 Feb 2016
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Jul 2015 -
Paraskevi 74,300 2003 Japan 7,400 May 2016
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Jan 2016 -
Vassos 76,000 2004 Japan 4,674 May 2016
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Apr 2015 -
Katerina 76,000 2004 Japan BPI(4) + 6% Feb 2017
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Dec 2015 -
Maritsa 76,000 2005 Japan 5,350 Apr 2016
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Dec 2015 -
Efrossini 75,000 2012 Japan 6,200 Aug 2016
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Jan 2016 -
Zoe 75,000 2013 Japan 5,100 Apr 2016
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Oct 2015 -
Kypros Land 77,100 2014 Japan 8,000 Mar 2016
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Dec 2015 -
Kypros Sea 77,100 2014 Japan 6,050 Aug 2016
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Jan 2016 -
Kypros Unity(7) 78,000 2014 Japan 4,500 Mar 2016
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Jan 2016 -
Kypros Bravery 78,000 2015 Japan 6,250 May 2016
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Dec 2015 -
Kypros Sky 77,100 2015 Japan 6,000 Mar 2016
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Kypros Loyalty 78,000 2015 Japan
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Kamsarmax
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Pedhoulas Nov 2015 -
Merchant 82,300 2006 Japan 5,500 May 2016
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Nov 2015 -
Pedhoulas Trader 82,300 2006 Japan 5,700 Mar 2016
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Dec 2015 -
Pedhoulas Leader 82,300 2007 Japan 6,250 Dec 2016
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Pedhoulas Jan 2016 -
Commander 83,700 2008 Japan 6,250 Nov 2016
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Pedhoulas Aug 2015 -
Builder(6) 81,600 2012 China 8,500 Mar 2016
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May 2015 -
Pedhoulas Feb 2016
Fighter(6) 81,600 2012 China 7,000 Mar 2016 -
6,100 Dec 2016
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Pedhoulas Feb 2016 -
Farmer(6) 81,600 2012 China 4,000 Mar 2016
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Pedhoulas Jul 2015 -
Cherry(6) 82,000 2015 China 7,875 Feb 2016
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Post-Panamax
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Feb 2016 -
Stalo(7) 87,000 2006 Japan 6,000 Mar 2016
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Dec 2015 -
Marina 87,000 2006 Japan 6,200 Oct 2016
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Dec 2015 -
Xenia 87,000 2006 Japan 5,340 May 2016
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Dec 2015 -
Sophia 87,000 2007 Japan 5,000 Mar 2016
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Aug 2015 -
8,200 Feb 2016
Eleni 87,000 2008 Japan 7,250 Apr 2016 -
Oct 2018
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Apr 2015 -
Martine 87,000 2009 Japan BPI(4) + 10% Jan 2017
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Feb 2016 -
Andreas K 92,000 2009 South Korea 6,000 Apr 2016
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Feb 2016 -
Panayiota K 92,000 2010 South Korea 3,500 Mar 2016
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Nov 2015 -
Venus Heritage 95,800 2010 Japan 8,000 Feb 2016
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Dec 2015 -
Venus History 95,800 2011 Japan 4,812 Apr 2016
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Jan 2016 -
Venus Horizon 95,800 2012 Japan 5,500 Dec 2016
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Troodos Sun 85,000 2016 Japan
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Capesize
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Sep 2011 -
Kanaris 178,100 2010 China 25,928 Jun 2031
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Feb 2012 -
Pelopidas 176,000 2011 China 38,000 Dec 2021
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Jan 2014 -
Lake Despina 181,400 2014 Japan 24,376(5) Jan 2024
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Total dwt of
existing fleet 3,341,800
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Charter
Hull Number DWT Expected Country of Rate(2) Charter
delivery(1) construction USD/day Duration(3)
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Panamax
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Hull 828 77,000 H1 2016 Japan
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Hull 835 77,000 H1 2017 Japan
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Kamsarmax
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Hull 1146 82,000 H1 2016 China
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Hull 1551 81,600 H1 2017 Japan
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Hull 1552(8) 81,600 H1 2018 Japan
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Post-Panamax
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Hull 1685 84,000 H1 2016 Japan
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Hull 1718(9) 84,000 Japan
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Total dwt of
orderbook 567,200
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1) For existing vessels, the year represents the year built. For newbuilds,
the dates shown reflect the expected delivery date.
2) Charter rate is the 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 rate
represents the weighted average gross daily 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 date listed represent either the actual start date or, in the case
of a contracted charter that had not commenced as of February 5, 2016,
the scheduled start date. The actual start date and redelivery date may
differ from the scheduled start and redelivery dates depending on the
terms of the charter and market conditions.
4) A period time charter at a gross daily charter rate linked to the Baltic
Panamax Index ("BPI") plus a premium.
5) A period time charter of ten years at a gross daily charter rate of
$23,100 for the first two and a half years and of $24,810 for the
remaining period. The charter agreement grants the charterer an option
to purchase the vessel at any time beginning at the end of the seventh
year of the charter, 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. The charter
agreement also 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.
6) Vessel sold and leased back on a net daily bareboat charter rate of
$6,500, for a period of 10 years, with a purchase obligation at the end
of the 10th year and purchase options in favor of the Company after the
second year of the bareboat charter, at annual intervals and
predetermined purchase prices.
7) In February 2016, following evaluation, negotiation and approval by a
Special Committee of the Board of Directors of the Company comprised of
the independent directors, two subsidiaries of the Company entered into
agreements to sell two vessels, the Kypros Unity, a 78,000 dwt, Panamax
vessel built in 2014, and the Stalo, a 87,000 dwt Post-Panamax vessel
built in 2006, to entities controlled by Mr. Hajioannou, the Company’s
Chairman and Chief Executive Officer.
8) Following evaluation, negotiation and approval by a Special Committee of
the Board of Directors of the Company comprised of the independent
directors, a subsidiary of the Company is in negotiations to novate the
shipbuilding contract for Hull No.1552 to an entity controlled by Mr.
Hajioannou, the Company’s Chairman and Chief Executive Officer.
9) On February 2016, following evaluation, negotiation and approval by a
Special Committee of the Board of Directors of the Company comprised of
the independent directors, a subsidiary of the Company entered into an
agreement to novate the newbuilding contract for Hull No.1718 to an
entity controlled by Mr. Hajioannou, the Company’s Chairman and Chief
Executive Officer, pursuant to which the Company subsidiary will no
longer have any obligations under the shipbuilding contract.
The contracted employment of fleet ownership days as of February 5,
2016 was:
2016 (remaining) 42%
2016 (full year) 47%
2017 11%
2018 9%
Capital expenditure requirements and liquidity
As of December 31, 2015, the Company had agreed to acquire eight
newbuild vessels, with four to be delivered in 2016, two to be
delivered in 2017, one to be delivered in 2018 and one to be
delivered in 2019. The remaining capital expenditure requirements to
shipyards or sellers (before minor adjustments for shipyards’ costs
related to certain delayed deliveries), for the eight vessels
amounted to an aggregate of $179.7 million, of which $78.4 million is
due in 2016, $55.9 million is due in 2017, $20.3 million is due in
2018 and $25.1 million is due in 2019. The effect of the novations of
Hulls 1718 and 1552, will be a reduction of capital expenditure
requirements by an aggregate of $57.6 million ($56.9 million to
sellers and $0.7 million acquisition commission to our Manager(5)),
of which $11.6 million was due in 2017, $20.6 million was due in 2018
and of $25.4 million was due in 2019.
As of February 5, 2015, the Company had agreed to acquire six
newbuild vessels, with three to be delivered in 2016, two to be
delivered in 2017, and one to be delivered in 2018, (which is under
negotiations to be novated as described above). The remaining capital
expenditure requirements to shipyards or sellers before minor
adjustments for shipyards’ costs related to certain delayed
deliveries, for the six vessels amounted to $135.6 million, of which
$62.7 million is due in 2016, $52.6 million in 2017 and $20.3 million
is due in 2018. The effect of the novation of Hull 1552, will be a
reduction of capital expenditure requirements of $28.8 million ($28.5
million to sellers and $0.3 million acquisition commission to our
Manager(5)), of which $8.2 million is due in 2017 and $20.6 million
is due in 2018.
As of December 31, 2015, the Company had liquidity of $362.3 million
consisting of $132.2 million in cash and bank time deposits, $72.3
million in restricted cash and $157.8 million available under
committed loan facilities and financing transactions for eight
newbuild vessels. Liquidity as of December 31, 2015, does not include
any proceeds from the sale of assets classified as "Assets held for
sale" as of December 31, 2015, as the transactions are expected to
take place in March 2016.
As of February 5, 2016, the Company had liquidity of $255.7 million
consisting of $114.0 million in cash and bank time deposits, $19.9
million in restricted cash and $121.8 million available under
committed loan facilities and financing transactions for six newbuild
vessels and one existing vessel. Liquidity as of February 5, 2016,
does not include any proceeds from the sale of assets classified as
"Assets held for sale" as of December 31, 2015, as the transactions
are expected to take place in March 2016.
(5) 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".
Refinancing of credit facilities
As of February 5, 2016, the Company has refinanced or accepted term
sheets, to amend credit and loan agreements, in an aggregate amount
of $260.9 million, which include debt with DNB (UK) Limited, Royal
Bank of Scotland plc and Danish Ship Finance, resulting in the
extension of the tenor of these facilities, the reduction of the
annual principal installments for the next five years, extending the
balloon repayment dates to 2021 and onwards, in compliance with our
financial covenants.
The old and the new aggregate repayment schedules for these
facilities are presented in the table below:
Repayment Schedule on an annual basis
($ in millions)
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2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
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Old Schedule 11.1 11.1 34.3 62.1 133.2 6.0 6.0 6.0 3.0 272.8
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New Schedule 5.0 6.5 14.0 24.8 29.0 72.2 109.4 0.0 0.0 260.9
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Dividend Policy
The Board of Directors of the Company has not declared a dividend for
the fourth quarter of 2015. The Company has 83,522,338 shares of
common stock issued and outstanding as of February 5, 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.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "We continue to
execute on our strategy of further increasing our liquidity and
enhancing our financial flexibility to address the historically low
charter market conditions. The sale and novation transactions with
Mr. Hajioannou announced today will materially reduce our capital
expenditure obligations in the near term and our existing
indebtedness and significantly improve our liquidity position. These
transactions, together with our continued cost reduction initiatives
that led us to daily operating expenses for the fourth quarter,
including three dry-dockings, of $4,072 and the recently announced
refinancing of credit facilities that pushed back balloon payments to
2021 and onwards, create value for our Stockholders, while we
maintain sufficient liquidity and financial flexibility to weather
this challenging portion of the marine dry bulk shipping cycle and
take advantage of the future recovery."
Conference Call
On Thursday, February 11, 2016 at 9:00 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). Please quote "Safe
Bulkers" to the operator.
A telephonic replay of the conference call will be available until
February 18, 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#
Slides and Audio Webcast
There will also be a live, and then archived, webcast of the
conference call, available through the Company’s website
(www.safebulkers.com). Participants in the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Management Discussion of Fourth Quarter 2015 Results
Statement of Income
Net loss for the fourth quarter of 2015 was $29.9 million compared to
net loss of $0.1 million, during the same period in 2014, mainly due
to the following factors:
Net revenues: Net revenues decreased by 24% to $29.9 million for the
fourth quarter of 2015, compared to $39.1 million for the same period
in 2014, mainly due to a decrease in charter rates. The Company
operated 36.00 vessels on average during the fourth quarter of 2015,
earning a TCE(6) rate of $8,251, compared to 32.00 vessels and a TCE
rate of $11,849 during the same period in 2014.
Vessel operating expenses: Vessel operating expenses increased by 9%
to $13.5 million for the fourth quarter of 2015, compared to $12.4
million for the same period in 2014. The increase in operating
expenses is less than the increase in ownership days by 13% to 3,312
days for the fourth quarter of 2015 from 2,944 days for the same
period in 2014.
Impairment loss: Impairment loss amounted to $22.8 million for the
fourth quarter of 2015, compared to zero for the same period in 2014,
as a result of an impairment loss of $12.9 million due to
classification as Assets held for sale of the vessels Kypros Unity
and Stalo, and of the write-off of the advances paid in the amount of
$9.9 million following the agreed novation agreement and the novation
agreement under negotiation, of the shipbuilding contracts of Hull
1718 and Hull 1552, respectively.
Depreciation: Depreciation increased to $12.2 million for the fourth
quarter of 2015, compared to $11.2 million for the same period in
2014, as a result of the increase in the average number of vessels
operated by the Company during the fourth quarter of 2015.
Gain/(loss) on derivatives: Gain on derivatives was $0.7 million in
the fourth quarter of 2015, compared to a loss of $0.9 million for
the same period in 2014, 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 2.0 years as of December
31, 2015. 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 by 32% to $3.0 million for
the fourth quarter of 2015 compared to $4.4 million for the same
period in 2014, mainly due to a decrease in vessel repositioning
expenses due to lower fuel prices.
Daily vessel operating expenses(7): Daily vessel operating expenses
reduced by 4% to $4,072 for the fourth quarter of 2015 compared to
$4,226 for the same period in 2014. Daily vessel operating expenses
include the cost of three dry dockings completed during the fourth
quarter of 2015 compared to only one during the same period in 2014.
Daily general and administrative expenses(7): Daily general and
administrative expenses, which include daily fixed and variable
management fees payable to our Managers(5) and daily costs incurred
in relation to our operation as a public company, were $1,238 for the
fourth quarter of 2015, compared to $1,179 for the same period in
2014.
Interest expenses: Interest expense increased to $4.2 million for the
fourth quarter of 2015 compared to $1.9 million for the same period
in 2014, as a result of the accounting treatment of the four-vessel
sale and leaseback transactions concluded in September 2015, as well
as the increase in the average outstanding amount of loans and credit
facilities and in the weighted average interest rate of such loans
and credit facilities.
(6) Time charter equivalent rate, or TCE rate, represents the
Company’s charter revenues less commissions and voyage expenses
during a period divided by the number of available days during such
period.
(7) See Table 2.
Balance sheet
Assets held for sale: We have classified the assets and liabilities
directly associated with the vessels classified as Assets held for
sale (the Stalo and the Kypros Unity) and presented them on the
balance sheet separately under current assets in the amount of $31.9
million, which represents the net book value of the two vessels as of
December 31, 2015, and $16.7 million under current liabilities, which
represent the outstanding balance of the loan facility of the Kypros
Unity as of December 31, 2015, net of deferred finance charges,
respectively.
Current portion of long term debt: Current portion of long-term debt,
as of December 31, 2015, of $77.5 million net of deferred finance
charges of $2.7 million, includes the outstanding balance of two loan
facilities in the aggregate amount of $50.6 million, for which the
Company had given notice of prepayment to the respective lender prior
to December 31, 2015. The Company repaid in full both loan facilities
in January 2016, utilizing restricted cash. The remaining current
portion of long-term debt was $29.6 million, as of December 31, 2015.
Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands of U.S. Dollars except for share and per share data)
Three-Months Period Twelve-Months Period
Ended December 31, Ended December 31,
---------------------- ----------------------
2014 2015 2014 2015
---------- ---------- ---------- ----------
REVENUES:
Revenues 40,593 31,198 159,900 132,375
Commissions (1,536) (1,254) (5,806) (5,058)
Net revenues 39,057 29,944 154,094 127,317
EXPENSES:
Voyage expenses (4,376) (3,004) (19,429) (17,856)
Vessel operating expenses (12,442) (13,485) (50,634) (55,469)
Depreciation (11,152) (12,175) (43,084) (47,133)
General and administrative
expenses (3,472) (4,101) (13,331) (14,617)
Early redelivery cost - - (532) -
Gain on asset purchase
cancellation - - 3,633 -
Loss from inventory
valuation (4,001) (146) (4,001) (1,432)
Impairment loss - (22,826) - (22,826)
Operating income/(loss) 3,614 (25,793) 26,716 (32,016)
OTHER (EXPENSE) / INCOME:
Interest expense (1,925) (4,244) (8,335) (11,650)
Other finance costs (504) (205) (1,132) (242)
Interest income 63 32 821 86
(Loss)/gain on derivatives (932) 692 (1,977) (1,676)
Foreign currency gain 86 61 13 347
Amortization and write-off
of deferred finance
charges (550) (445) (1,472) (2,793)
Net (loss)/income (148) (29,902) 14,634 (47,944)
Less Preferred dividend 3,550 3,550 9,390 14,200
Net (loss)/income
available to common
shareholders (3,698) (33,452) 5,244 (62,144)
(Loss)/earnings per share (0.04) (0.40) 0.06 (0.74)
Weighted average number of
shares 83,454,102 83,504,266 83,446,970 83,479,636
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, December 31,
2014 2015
------------ ------------
ASSETS
Cash, restricted cash and time deposits 118,250 196,748
Other current assets 17,642 14,419
Assets held for sale - 31,995
Vessels, net 960,423 988,161
Advances for vessel acquisition and vessels
under construction 74,243 68,356
Restricted cash non-current 4,263 7,837
Other non-current assets 1,609 2,115
Total assets 1,176,430 1,309,631
LIABILITIES AND EQUITY
Other current liabilities 11,597 11,535
Current portion of long-term debt 15,733 77,467
Liability directly associated with assets held
for sale - 16,724
Long-term debt, net of current portion 447,936 569,399
Other non-current liabilities 1,065 360
Shareholders’ equity 700,099 634,146
Total liabilities and equity 1,176,430 1,309,631
TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND
ADJUSTED EARNINGS/(LOSS) PER SHARE
Three-Months Twelve-Months
Period Ended December Period Ended December
31, 31,
---------------------- ----------------------
(In thousands of U.S.
Dollars except for share
and per share data) 2014 2015 2014 2015
---------- ---------- ---------- ----------
Net (loss)/income - Adjusted
Net income/(loss)
Net (loss)/income (148) (29,902) 14,634 (47,944)
Less Gain on asset purchase
cancellation - - (3,633) -
Plus Early redelivery cost - - 532 -
Plus Loss/(gain) on
derivatives 932 (692) 1,977 1,676
Plus Loss from inventory
valuation 4,001 146 4,001 1,432
Plus Impairment loss - 22,826 - 22,826
Plus Foreign currency gain (86) (61) (13) (347)
Adjusted Net income/(loss) 4,699 (7,683) 17,498 (22,357)
EBITDA - Adjusted EBITDA
Net (loss)/income (148) (29,902) 14,634 (47,944)
Plus Net Interest expense 1,862 4,212 7,514 11,564
Plus Depreciation 11,152 12,175 43,084 47,133
Plus Amortization 550 445 1,472 2,793
EBITDA 13,416 (13,070) 66,704 13,546
Less Gain on asset purchase
cancellation - - (3,633) -
Plus Early redelivery cost - - 532 -
Plus Loss/(gain) on
derivatives 932 (692) 1,977 1,676
Plus Loss from inventory
valuation 4,001 146 4,001 1,432
Plus Impairment loss - 22,826 - 22,826
Plus Foreign currency gain (86) (61) (13) (347)
ADJUSTED EBITDA 18,263 9,149 69,568 39,133
(Loss)/earnings per share
Net (loss)/income (148) (29,902) 14,634 (47,944)
Less Preferred dividend 3,550 3,550 9,390 14,200
Net (loss)/income available
to common shareholders (3,698) (33,452) 5,244 (62,144)
Weighted average number of
shares 83,454,102 83,504,266 83,446,970 83,479,636
(Loss)/earnings per share (0.04) (0.40) 0.06 (0.74)
Adjusted Earnings/(loss) per
share
Adjusted Net income/(loss) 4,699 (7,683) 17,498 (22,357)
Less Preferred dividend 3,550 3,550 9,390 14,200
Adjusted Net income/(loss)
available to common
shareholders 1,149 (11,233) 8,108 (36,557)
Weighted average number of
shares 83,454,102 83,504,266 83,446,970 83,479,636
Adjusted Earnings/(loss) per
share 0.01 (0.13) 0.10 (0.44)
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 gain
on asset purchase cancellation, early redelivery cost, loss from
inventory valuation, impairment loss, 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 gain on asset purchase cancellation, early redelivery
cost, loss from inventory valuation, impairment loss, 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 gain on asset
purchase cancellation, early redelivery cost, loss from inventory
valuation, impairment loss, 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.
TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS
Three-Months Twelve-Months
Period Ended Period Ended
December 31, December 31,
2014 2015 2014 2015
FLEET DATA
Number of vessels at period’s end 32 36 32 36
Average age of fleet (in years) 5.85 6.17 5.85 6.17
Ownership days (1) 2,944 3,312 11,309 12,674
Available days (2) 2,927 3,265 11,216 12,482
Operating days (3) 2,914 3,136 11,174 12,242
Fleet utilization (4) 99.0% 94.7% 98.8% 96.6%
Average number of vessels in the
period (5) 32.00 36.00 30.98 34.72
AVERAGE DAILY RESULTS
Time charter equivalent rate (6) $ 11,849 $ 8,251 $ 12,007 $ 8,770
Daily vessel operating expenses (7) $ 4,226 $ 4,072 $ 4,477 $ 4,377
Daily general and administrative
expenses (8) $ 1,179 $ 1,238 $ 1,179 $ 1,153
(1) Ownership days represents the aggregate number of days in a period
during which each vessel in our fleet has been owned by us.
(2) Available days represents 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 represents 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 rate, or TCE rate, represents our charter
revenues less commissions and voyage expenses during a period divided by
the number of available days during such 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 for the relevant period by ownership days for such 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 for the relevant period by ownership days for
such period.
About Safe Bulkers, Inc.
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.
Forward-Looking Statements
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:
Company Contact:
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel.: +30 2 111 888 400
Fax: +30 2 111 878 500
E-Mail: directors@safebulkers.com
Investor Relations / Media Contact:
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: safebulkers@capitallink.com
SOURCE: Safe Bulkers, Inc.
