StockSelector.com
  Research, Select, & Monitor Saturday, September 22, 2018 5:53:10 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Safe Bulkers, Inc.$2.74($.01)(.36%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Safe Bulkers, Inc. Reports Fourth Quarter and Twelve Months 2017 Results
   Wednesday, February 14, 2018 4:05:29 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 months period ended December 31, 2017.

Summary of Fourth Quarter 2017 Results

-- Net revenues for the fourth quarter of 2017 increased by 34% to $42.4 million from $31.7 million during the same period in 2016.

-- Net loss for the fourth quarter of 2017 was $86.6 million as compared to $4.6 million, during the same period in 2016. Adjusted net income for the fourth quarter of 2017 was $5.5 million as compared to Adjusted net loss of $4.1 million, during the same period in 2016.

-- EBITDA for the fourth quarter of 2017 amounted to loss of $68.1 million as compared to earnings of $13.1 million during the same period in 2016. Adjusted EBITDA for the fourth quarter of 2017 increased by 76% to $23.9 million from $13.6 million during the same period in 2016.

-- Loss per share and Adjusted earnings per sharefor the fourth quarter of 2017 were $0.88 and $0.02 respectively, calculated on a weighted average number of 101,531,352 shares, as compared to a Loss per share of $0.09 and Adjusted loss per share of $0.09 during the same period in 2016, calculated on a weighted average number of 87,364,672 shares.

Summary of Twelve Months Ended December 31, 2017 Results

-- Net revenues for the twelve months of 2017 increased by 35% to $148.0 million from $109.8 million during the same period in 2016.

-- Net loss for the twelve months of 2017 was $84.7 million as compared $56.0 million, during the same period in 2016. Adjusted net loss for the twelve months of 2017 was $1.7 million as compared to $36.2 million, during the same period in 2016.

-- EBITDA for the twelve months of 2017 decreased to loss of $8.4 million as compared to earnings of $15.6 million during the same period in 2016. Adjusted EBITDA for the twelve months of 2017 increased by 110% to $74.7 million as compared to $35.5 million during the same period in 2016.

-- Loss per share and Adjusted loss per share for the twelve months of 2017 were $0.98 and $0.16, respectively, calculated on a weighted average number of shares of 100,932,876, as compared to loss per share of $0.83 and Adjusted loss per share of $0.59 during the same period in 2016, calculated on a weighted average number of shares of 84,526,411.

___________________________________

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 debt extinguishment, early redelivery cost, other operating income/(expense), impairment loss and gain/(loss) on foreign currency. See Table 1.

EBITDA is a non-GAAP measure and represents Net income/(loss) plus net interest expense, tax, depreciation and amortization. See Table 1.

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/(expense), early redelivery cost, impairment loss and gain/(loss) on foreign currency. See Table 1.

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.

Redemption of Series B Preferred Shares

In January 2018, the Company announced the redemption, on February 20, 2018, of all outstanding 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (the "Series B Preferred Shares") at redemption price of $25.00 per Series B Preferred Share plus all accumulated and unpaid dividends until the redemption date, (redemption date excluded). There are currently 379,514 issued and outstanding Series B Preferred Shares.

Fleet and Employment Profile

In December 2017, the Company took delivery of Agios Spyridonas, a second-hand, 92,000 dwt, South Korean 2010 built, dry-bulk, Post-Panamax class vessel, sistership of our two existing Post-Panamax class vessels, at an attractive price. The acquisition was financed from cash on hand.

As of February 9, 2018, our operational fleet comprised of 39 drybulk vessels with an average age of 7.6 years and an aggregate carrying capacity of 3.5 million dwt. Our fleet consists of 14 Panamax class vessels, 9 Kamsarmax class vessels, 13 post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. Upon delivery of our last contracted drybulk newbuild Kamsarmax class vessel, scheduled for 2018, and assuming no additional vessel acquisitions or disposals, our fleet will comprise of 40 vessels, 11 of which will be eco-design vessels, with an aggregate carrying capacity of 3.6 million dwt.

Set out below is a table showing the Company’s existing and newbuild vessels and their contracted employment as of February 9, 2018:

Vessel Name                 DWT       Year Built Country of   Gross Charter   Charter Duration
                                                 construction Rate  [USD/day]
Panamax
Maria                       76,000    2003       Japan        11,900          Feb 2018- Mar 2018
Koulitsa                    76,900    2003       Japan        9,000           Jan 2018 - Apr 2019
Paraskevi                   74,300    2003       Japan        7,400           Apr 2017 - Jun 2018
Vassos                      76,000    2004       Japan        13,350          Jan 2018 - May 2018
Katerina                    76,000    2004       Japan        7,500           Apr 2017 - Jun 2018
Maritsa                     76,000    2005       Japan        10,100          Sep 2017 - Dec 2018
Efrossini                   75,000    2012       Japan        12,940          Jan 2018  - April 2018
Zoe                         75,000    2013       Japan        8,200           Nov 2017 - Mar 2019
Kypros Land                 77,100    2014       Japan        14,000          Jan 2018 - Mar 2018
Kypros Sea                  77,100    2014       Japan        11,250          Jul 2017 - May 2018
Kypros Bravery              78,000    2015       Japan        7,500           Sep 2016 - May 2018
Kypros Sky                  77,100    2015       Japan
Kypros Loyalty              78,000    2015       Japan        12,850          Jan 2018 - Dec 2018
Kypros Spirit               78,000    2016       Japan        11,800          Dec 2017 - Feb 2018
Kamsarmax
Pedhoulas Merchant          82,300    2006       Japan        13,850          Sep 2017 - Feb 2018
Pedhoulas Trader            82,300    2006       Japan        11,600          Sep 2017 - Jul 2018
Pedhoulas Leader            82,300    2007       Japan        13,250          Jan 2018 - Sep 2018
Pedhoulas Commander         83,700    2008       Japan        10,150          Jun 2017 - May 2018
Pedhoulas Builder           81,600    2012       China        8,400           Apr 2017 - Jun 2018
                                                              9,900           Jun 2018 - Aug 2019
Pedhoulas Fighter           81,600    2012       China        12,650          Dec 2017 - Mar 2018
Pedhoulas Farmer            81,600    2012       China        12,600          Jan 2018 - Aug 2018
Pedhoulas Cherry            82,000    2015       China        6,600           Apr 2017 - Oct 2018
Pedhoulas Rose              82,000    2017       China        8,500           Jan 2017 - Mar 2018
                                                              10,000          Mar 2018 - May 2019
Post-Panamax
Marina                      87,000    2006       Japan        10,600          Jul 2017 - May 2018
Xenia                       87,000    2006       Japan        10,000          Feb 2017 - Jun 2018
                                                              12,500          Jun 2018 - Nov 2019
Sophia                      87,000    2007       Japan        7,250           Apr 2016 - Nov 2018
Eleni                       87,000    2008       Japan        14,250          Jan 2018  - Feb 2018
Martine                     87,000    2009       Japan        11,500          Aug 2017 - May 2018
Andreas K                   92,000    2009       South Korea  13,000          Nov 2017 - Feb 2018
Panayiota K                 92,000    2010       South Korea  11,250          Feb 2018 - Mar 2018
Agios Spyridonas            92,000    2010       South Korea  11,500          Jan 2018 - Mar 2018
Venus Heritage              95,800    2010       Japan        13,200          Nov 2017 - Mar 2019
Venus History               95,800    2011       Japan        14,750          Jan 2018 - Jan 2019
Venus Horizon               95,800    2012       Japan        13,950          Jan 2018 - Dec 2018
Troodos Sun                 85,000    2016       Japan        15,950          Dec 2017 - Feb 2018
Troodos Air                 85,000    2016       Japan        11,350          Mar 2017 - May 2018
                                                              12,500          May 2018 - Sep 2019
Capesize
Kanaris                     178,100   2010       China        25,928          Sep 2011 - Jun 2031
Pelopidas                   176,000   2011       China        38,000          Feb 2012 - Dec 2021
Lake Despina                181,400   2014       Japan        24,376          Jan 2014 - Jan 2024
Total dwt of existing fleet 3,513,800
Hull Number            DWT    Expected Country of   Gross Charter   Charter Duration
                              delivery construction Rate  [USD/day]
Kamsarmax
Hull 1552              81,600 H1 2018  Japan
Total dwt of orderbook 81,600

-- 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. In case a charter agreement provides for additional payments, namely ballast bonus to compensate for vessel repositioning, the gross daily charter rate presented has been adjusted to reflect estimated vessel repositioning expenses. In case of voyage charters the charter rate represents revenue recognized on a pro-rata basis over the duration of the voyage from load to discharge port less related voyage expenses.

-- The start date represents either the actual start date or, in the case of a contracted charter that had not commenced as of February 9, 2018, the scheduled start date. The actual start date and redelivery date may differ from the referenced scheduled start and redelivery dates depending on the terms of the charter and market conditions and does not reflect the options to extend the period time charter.

-- 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.

-- 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. In January 2017, the period time charter was amended to reflect substitution of the initial charterer with its subsidiary guaranteed by the initial charterer and changes in payment terms; all other charter terms remained unchanged. 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 a 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.

The contracted employment of fleet ownership days as of February 9, 2018, was:

2018 (remaining) 53 %
2018 (full year) 58 %
2019             16 %
2020             8  %

Order book, newbuilds capital expenditure requirements and liquidity

As of December 31, 2017, the remaining order book of the Company consisted of one newbuild vessel; our wholly-owned subsidiary Pinewood Shipping Corporation has contracted to acquire Hull No. 1552, with scheduled delivery date in June 2018.

As of December 31, 2017, the aggregate remaining capital expenditure, relating to the purchase consideration of newbuilds, amounted to $27.6 million payable within 2018.

As of December 31, 2017, we had secured $16.9 million of preferred equity financing for Hull 1552 and had the capacity to borrow against two unencumbered vessels.

As of December 31, 2017, we had liquidity of $68.7 million consisting of $58.4 million in cash and bank time deposits and $10.3 million in restricted cash.

As of February 9, 2018, the aggregate remaining capital expenditure, relating to the purchase consideration of newbuilds, amounted to $27.1 million payable within 2018.

As of February 9, 2018, we had liquidity of $79.5 million consisting of $70.9 million in cash and bank time deposits and $8.6 million in restricted cash, in addition to $16.9 million of financing arrangements, and the capacity to borrow against two unencumbered vessels.

Dividend Policy

The Board of Directors of the Company has not declared a dividend to its common stock holders for the fourth quarter of 2017. The Company had 101,535,996 shares of common stock issued and outstanding as of February 9, 2018.

The Company declared in January a cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (SB.PR.B ), on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (SB.PR.C ) and on its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (SB.PR.D ) for the period from October 30, 2017 to January 29, 2018 payable on January 30, 2018 to the respective shareholders of record as of January 23, 2018.

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.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "Safe Bulkers Inc., has become profitable on adjusted basis for the first time after several quarters, and we believe has one of the most competitive break-even points in the industry. We continue to use our cash from operations to further improve our capital structure, while in parallel we have invested in one second hand vessel creating intrinsic value for our common shareholders."

Conference Call

On Thursday, February 15, 2018 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). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until February 22, 2018 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 (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 2017 Results

Net loss for the fourth quarter of 2017 was $86.6 million compared to net loss of $4.6 million during the same period in 2016, mainly due to the following factors:

Net revenues: Net revenues increased by 34% to $42.4 million for the fourth quarter of 2017, compared to $31.7 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 38.04 vessels on average during the fourth quarter of 2017, earning a TCE rate of $11,944, compared to 37.00 vessels and a TCE rate of $8,936 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 $13.7 million for the fourth quarter of 2017, compared to $12.6 million for the same period in 2016, as a result of: i) increased average number of vessels by 3% to 38.04 vessels for the fourth quarter of 2017, from 37.00 vessels for the same period in 2016, ii) increased maintenance and spare parts costs to $2.4 million for the fourth quarter of 2017, compared to $1.5 million for the same period in 2016.

Impairment loss: Consistent with prior practices, we have reviewed all our vessels for impairment and four of our vessels were found to be impaired. We have recorded impairment charge of $91.3 million for the fourth quarter of 2017, as a result of writing down these vessels to their estimated fair market value. Impairment charge is a non-cash item.

Interest expenses: Interest expense increased to $5.6 million in the fourth quarter of 2017, compared to $5.1 million for the same period in 2016, as a result of the increased USD LIBOR affecting the weighted average interest rate of our loans and credit facilities.

Voyage expenses: Voyage expenses decreased by 60% to $0.6 million for the fourth quarter of 2017 compared to $1.5 million for the same period in 2016, mainly due to decreased vessel repositioning expenses as a result of improved market conditions.

Daily vessel operating expenses: Daily vessel operating expenses, which are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period, increased by 5% to $3,914 for the fourth quarter of 2017 compared to $3,711 for the same period in 2016.

Daily general and administrative expenses: Daily general and administrative expenses, which include management fees payable to our Managers increased by 8% to $1,175 for the fourth quarter of 2017, compared to $1,083 for the same period in 2016.

___________________________________ 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’’.

8 London interbank offered rate.

Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands of U.S. Dollars except for share and per share data)
                                                       Three-Months Period Ended          Twelve-Months Period Ended
                                                       December 31,                       December 31,
                                                       2016             2017              2016              2017
REVENUES:
Revenues                                               32,944           44,101            113,959           154,040
Commissions                                            (1,234     )     (1,723      )     (4,187      )     (6,008      )
Net revenues                                           31,710           42,378            109,772           148,032
EXPENSES:
Voyage expenses                                        (1,490     )     (573        )     (7,679      )     (3,932      )
Vessel operating expenses                              (12,633    )     (13,699     )     (49,519     )     (52,794     )
Depreciation                                           (12,686    )     (12,981     )     (49,485     )     (51,424     )
General and administrative expenses                    (3,687     )     (4,114      )     (15,381     )     (16,118     )
Early redelivery cost                                  -                (996        )     -                 (1,263      )
Other operating (expense)/income                       (364       )     -                 794               (390        )
Loss on sale of assets                                 -                -                 (2,750      )     (120        )
Impairment loss                                        -                (91,293     )     (17,163     )     (91,293     )
Operating income/(loss)                                850              (81,278     )     (31,411     )     (69,302     )
OTHER (EXPENSE) / INCOME:
Interest expense                                       (5,111     )     (5,558      )     (19,576     )     (23,224     )
Other finance costs                                    (266       )     (103        )     (1,735      )     (538        )
Gain on debt extinguishment                            -                -                 -                 8,189
Interest income                                        130              193               515               799
Gain/(loss) on derivatives                             251              21                (620        )     72
Foreign currency (loss)/gain                           (376       )     237               (76         )     1,782
Amortization and write-off of deferred finance charges (115       )     (72         )     (3,063      )     (2,457      )
Net loss                                               (4,637     )     (86,560     )     (55,966     )     (84,679     )
Less Preferred dividend                                3,495            2,940             14,025            12,316
Less Preferred deemed dividend                         -                -                 -                 2,146
Net loss available to common shareholders              (8,132     )     (89,500     )     (69,991     )     (99,141     )
Loss per share basic and diluted                       (0.09      )     (0.88       )     (0.83       )     (0.98       )
Weighted average number of shares                      87,364,672       101,531,352       84,526,411        100,932,876
                                                                        Twelve-Months Period
                                                                        Ended
                                                                        December 31,
                                                                        2016              2017
(In million of U.S. Dollars)
CASH FLOW DATA
Net cash provided by operating activities                               $     13.5        $     49.2
Net cash provided by /(used in) investing activities                          21.3              (38.2 )
Net cash used in financing activities                                         (83.9 )           (46.7 )
Net decrease in cash and cash equivalents                                     (49.1 )           (35.7 )
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
                                                                                   December  31, 2016  December 31, 2017
ASSETS
Cash, restricted cash and time deposits                                            94,813              60,016
Other current assets                                                               16,195              19,070
Vessels, net                                                                       1,038,719           942,876
Advances for vessel acquisition, vessels under construction and major improvements 13,007              3,653
Restricted cash non-current                                                        10,002              8,651
Other non-current assets                                                           1,017               831
Total assets                                                                       1,173,753           1,035,097
LIABILITIES AND EQUITY
Other current liabilities                                                          11,603              11,345
Current portion of long-term debt, net                                             12,177              25,588
Long-term debt, net                                                                569,781             541,816
Other non-current liabilities                                                      1,656               -
Shareholders’ equity                                                               578,536             456,348
Total liabilities and equity                                                       1,173,753           1,035,097
TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER SHARE
                                                                   Three-Months                  Twelve-Months
                                                                   Period Ended December 31,     Period Ended December 31,
(In thousands of U.S. Dollars except for share and per share data) 2016           2017           2016           2017
Net Loss - Adjusted Net (Loss)/Income
Net loss                                                           (4,637       ) (86,560      ) (55,966      ) (84,679      )
Plus Loss on sale of assets                                        -              -              2,750          120
Plus (Gain)/loss on derivatives                                    (251         ) (21          ) 620            (72          )
Plus Early redelivery cost                                         -              996            -              1,263
Less Other operating expense/(income)                              364            -              (794         ) 390
Plus Impairment loss                                               -              91,293         17,163         91,293
Less Gain on debt extinguishment                                   -              -              -              (8,189       )
Less Foreign currency loss/(gain)                                  376            (237         ) 76             (1,782       )
Adjusted (Net loss)/income                                         (4,148       ) 5,471          (36,151      ) (1,656       )
EBITDA - Adjusted EBITDA
Net loss                                                           (4,637       ) (86,560      ) (55,966      ) (84,679      )
Plus Net Interest expense                                          4,981          5,365          19,061         22,425
Plus Depreciation                                                  12,686         12,981         49,485         51,424
Plus Amortization                                                  115            72             3,063          2,457
EBITDA                                                             13,145         (68,142      ) 15,643         (8,373       )
Plus Loss on sale of assets                                        -              -              2,750          120
Plus (Gain)/loss on derivatives                                    (251         ) (21          ) 620            (72          )
Plus Early redelivery cost                                         -              996            -              1,263
Less Other operating expense/(income)                              364            -              (794         ) 390
Plus Impairment loss                                               -              91,293         17,163         91,293
Less Gain on debt extinguishment                                   -              -              -              (8,189       )
Less Foreign currency loss/(gain)                                  376            (237         ) 76             (1,782       )
ADJUSTED EBITDA                                                    13,634         23,889         35,458         74,650
Loss  per share
Net loss                                                           (4,637       ) (86,560      ) (55,966      ) (84,679      )
Less Preferred dividend                                            3,495          2,940          14,025         12,316
Less Preferred deemed dividend                                     -              -              -              2,146
Net loss available to common shareholders                          (8,132       ) (89,500      ) (69,991      ) (99,141      )
Weighted average number of shares                                  87,364,672     101,531,352    84,526,411     100,932,876
Loss per share                                                     (0.09        ) (0.88        ) (0.83        ) (0.98        )
Adjusted (Loss)/Earnings per share
Adjusted Net (Loss)/Income                                         (4,148       ) 5,471          (36,151      ) (1,656       )
Less Preferred dividend                                            3,495          2,940          14,025         12,316
Less Deemed dividend                                               -              -              -              2,146
Adjusted Net (loss)/income available to common shareholders        (7,643       ) 2,531          (50,176      ) (16,118      )
Weighted average number of shares                                  87,364,672     101,531,352    84,526,411     100,932,876
Adjusted (Loss)/Earnings per share                                 (0.09        ) 0.02           (0.59        ) (0.16        )

EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(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 income/(loss) represents Net income/(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 earnings/(loss) per share represents Adjusted Net income/(loss) less preferred dividend and preferred deemed dividend divided by the weighted average number of shares.

EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(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 income/(loss) and Adjusted earnings/(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, other operating income/(expense), early redelivery cost, impairment loss 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 income/(loss) generally eliminates the effects of 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, 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 income/(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 income/(loss) and Adjusted earnings/(loss) per share should not be construed as an inference that our future results will be unaffected by the excluded items.

TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS
                                               Three-Month              Twelve-Month
                                               Period Ended             Period Ended
                                               December 31,             December 31,
                                               2016        2017         2016        2017
FLEET DATA
Number of vessels at period end                37          39           37          39
Average age of fleet (in years)                6.68        7.51         6.68        7.51
Ownership days (1)                             3,404       3,500        13,390      13,858
Available days (2)                             3,382       3,500        13,329      13,788
Operating days (3)                             3,321       3,492        13,024      13,673
Fleet utilization (4)                          97.6   %    99.8    %    97.3   %    98.7    %
Average number of vessels in the period (5)    37.00       38.04        36.58       37.97
AVERAGE DAILY RESULTS
Time charter equivalent rate (6)               $8,936      $11,944      $7,659      $10,451
Daily vessel operating expenses (7)            $3,711      $3,914       $3,698      $3,810
Daily general and administrative expenses (8)  $1,083      $1,175       $1,149      $1,163

___________

(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 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.

Tel.: +30 211 1888400

+357 25 887 200

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

https://resource.globenewswire.com/Resource/Download/8e21edb4-c875-475e-abd5-10f55f69335b?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzcxMjUyMDE=" alt="" width="1" height="1"/>



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.