Safe Bulkers, Inc. Reports Fourth Quarter and Twelve Months 2016 Results
MONACO -- (Marketwired) -- 02/23/17 -- 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 twelve month period ended December 31, 2016.
Summary of Fourth Quarter 2016 Results
- Net revenues for the fourth quarter of 2016 increased by 6% to $31.7 million from $29.9 million during the same period in 2015.
- Net loss for the fourth quarter of 2016 was $4.6 million as compared to $29.9 million, during the same period in 2015. Adjusted net loss(1) for the fourth quarter of 2016 was $4.1 million as compared to adjusted net loss of $7.7 million, during the same period in 2015.
- EBITDA(2) for the fourth quarter of 2016 amounted to earnings of $13.1 million as compared to a loss of $13.1 million during the same period in 2015. Adjusted EBITDA(3) for the fourth quarter of 2016 increased by 49% to $13.6 million from $9.1 million during the same period in 2015.
- Loss per share(4) and adjusted loss per share(4) for the fourth quarter of 2016 were $0.09 and $0.09 respectively, calculated on a weighted average number of 87,364,672 shares, as compared to loss per share of $0.40 and adjusted loss per share of $0.13 during the same period in 2015, calculated on a weighted average number of 83,504,266 shares.
Summary of Twelve Months Ended December 31, 2016 Results
- Net revenues for the twelve months of 2016 decreased by 14% to $109.8 million as compared to $127.3 million during the same period in 2015.
- Net loss for the twelve months of 2016 was $56.0 million as compared to $47.9 million during the same period in 2015. Adjusted net loss for the twelve months of 2016 was $36.2 million as compared to adjusted net loss of $22.4 million, during the same period in 2015.
- EBITDA for the twelve months of 2016 increased by 16% to $15.6 million as compared to $13.5 million during the same period in 2015. Adjusted EBITDA for the twelve months of 2016 decreased by 9% to $35.5 million as compared to $39.1 million during the same period in 2015.
- Loss per share and adjusted loss per share for the twelve months of 2016 were $0.83 and $0.59, respectively, calculated on a weighted average number of 84,526,411 shares, as compared to loss per share(4) of $0.74 and adjusted loss per share of $0.44 during the same period in 2015, calculated on a weighted average number of 83,479,636 shares.
Additional offering
In December 2016, the Company concluded a public offering (the "Public Offering") of 15,640,000 shares of common stock, par value $0.001 per share, at a price of $1.10 per share, which included 2,040,000 shares of common stock sold pursuant to the full exercise of the underwriters' overallotment option. The aggregate gross proceeds to the Company from the Public Offering, including the sale of the overallotment shares, before the underwriting discount and other offering expenses, were approximately $17.2 million providing the Company with additional liquidity. An entity owned and controlled by our Chief Executive Officer and Chairman of our Board of Directors, Polys Hajioannou, purchased 2,727,272 shares of common stock in the Public Offering.
Fleet and Employment Profile
In January 2017, the Company took delivery of Pedhoulas Rose (Hull No. 1146), a 82,000 dwt, newbuild Kamsarmax class vessel. The delivery installment of $17.4 million was financed by a pre-agreed sale and leaseback arrangement of $24.8 million, which enhanced our liquidity. The sale and leaseback arrangement will be recorded as a financing transaction, and therefore, the vessel's book value will be recorded under fixed assets and will be depreciated over time, and the sale proceeds will be recorded as debt on the Company's balance sheet. The lease period is 10 years, based on a net daily bareboat charter rate of $6,500, with a purchase obligation on the Company at the end of the 10th year at a price of $14.5 million. The arrangement also includes purchase options in favor of the Company after the second year of the bareboat charter, at annual intervals and at predetermined purchase prices.
In January 2017, the Company took delivery of Hull No. 1551, a 81,600 dwt, newbuild Kamsarmax class vessel which was subsequently sold to our Chief Executive Officer and Chairman of our Board of Directors, Polys Hajioannou, pursuant to a previously disclosed agreement which had been evaluated and approved by a Special Committee of the Company's Board of Directors, which committee was wholly comprised of independent members of the Board and advised by independent counsel. The commission of 1% of the contract price payable to the related party management company with respect to the newbuild, has been waived in Company's favor.
As of February 17, 2017, our operational fleet comprised of 38 drybulk vessels with an average age of 6.6 years and an aggregate carrying capacity of 3,421,800 million dwt. The 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.
As of February 17, 2017, we had contracted to acquire our last drybulk newbuild Kamsarmax class vessel, scheduled for delivery in 2018, upon delivery of which and assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 39 vessels, 11 of which will be eco-design vessels, having an aggregate carrying capacity of 3.5 million dwt.
Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of February 17, 2017:
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Year Country of Charter Rate Charter
Vessel Name DWT Built(1) construction (2)USD/day Duration(3)
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Panamax
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Aug 2016 - Jan
Maria 76,000 2003 Japan 6,500 2018
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Jan 2017 - Apr
Koulitsa 76,900 2003 Japan 7,500(4) 2018
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5,600 Aug 2016- Mar 2017
Paraskevi 74,300 2003 Japan 7,400 Apr 2017- Jun 2018
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Jan 2017 - Mar
Vassos 76,000 2004 Japan 7,500(5) 2018
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Apr 2016 - Apr
BPI(6) + 6% 2017
Katerina 76,000 2004 Japan 7,500 Apr 2017 - Jun
2018
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Jul 2016 - Jul
Maritsa 76,000 2005 Japan 6,750 2017
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Feb 2017 - Aug
Efrossini 75,000 2012 Japan 8,500 2017
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Aug 2016 - Nov
Zoe 75,000 2013 Japan 6,200(7) 2017
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Feb 2017 - May
Kypros Land 77,100 2014 Japan 10,500 2017
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Dec 2016 - Jul
Kypros Sea 77,100 2014 Japan 9,000 2017
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Kypros Sep 2016 - Mar
Bravery 78,000 2015 Japan 7,500 2018
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Dec 2016 - Feb
Kypros Sky 77,100 2015 Japan 9,100 2018
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Kypros Jun 2016 - Sep
Loyalty 78,000 2015 Japan 6,250 2017
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Kypros Jan 2017 - Feb
Spirit 78,000 2016 Japan 6,000 2017
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Kamsarmax
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Pedhoulas Jun 2016 - Sep
Merchant 82,300 2006 Japan 6,000 2017
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Pedhoulas Jul 2016 - Sep
Trader 82,300 2006 Japan 6,200 2017
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Pedhoulas
Leader 82,300 2007 Japan 6,250 Dec 2015- Mar 2017
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Pedhoulas Jan 2016 - May
Commander 83,700 2008 Japan 6,250 2017
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Jan 2017 - Mar
Pedhoulas 7,550 2017
Builder (8) 81,600 2012 China 8,400(9) Apr 2017 - Apr
2018
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Pedhoulas Feb 2016 - Jun
Fighter(8) 81,600 2012 China 6,100 2017
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Pedhoulas Aug 2016 - Mar
Farmer(8) 81,600 2012 China 6,200 2017
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Feb 2017 - Mar
Pedhoulas 82,000 2015 China 2017
Cherry (8) 8,850 Mar 2017 - Oct
6,600 2018
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Pedhoulas Jan 2017 - Mar
Rose(8) 82,000 2015 China 8,500(10) 2018
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Post-Panamax
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Dec 2015 - Feb
Marina 87,000 2006 Japan 6,200 2017
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Xenia 87,000 2006 Japan
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Apr 2016 - Nov
Sophia 87,000 2007 Japan 7,250 2018
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Feb 2017 - Aug
Eleni 87,000 2008 Japan 9,750 2017
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Apr 2015 - Apr
Martine 87,000 2009 Japan BPI(6) + 10% 2017
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Jan 2017 - Feb
Andreas K 92,000 2009 South Korea 5,000 2017
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Dec 2016 - Mar
Panayiota K 92,000 2010 South Korea 9,250 2017
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Jan 2017 - Feb
Venus 10,800 2017
Heritage 95,800 2010 Japan 8,500 Mar 2017 - Oct
2017
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Jan 2017 - Feb
Venus 5,850 2017
History 95,800 2011 Japan 8,750 Feb 2017 - Oct
2017
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Venus Jan 2016 - Mar
Horizon 95,800 2012 Japan 5,500 2017
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Jan 2017 - Apr
Troodos Sun 85,000 2016 Japan 10,000 2017
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Jan 2017 - Feb
Troodos Air 85,000 2016 Japan 12,500 2017
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Capesize
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Sep 2011 - Jun
Kanaris 178,100 2010 China 25,928 2031
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Feb 2012 - Dec
Pelopidas 176,000 2011 China 38,000 2021
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Jan 2014 - Jan
Lake Despina 181,400 2014 Japan 24,376(11) 2024
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Total dwt of
existing 3,421,800
fleet
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Expected Country of Charter Rate Charter
Hull Number DWT delivery(1) construction (2)USD/day Duration(3)
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Kamsarmax
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Hull 1552 81,600 H1 2018 Japan
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Total dwt of
orderbook 81,600
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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. 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.
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 17, 2017,
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) The charter agreement grants the charterer the option to extend the
period time charter for an additional 10 to 14 months period at a gross
daily charter rate of $9,000.
5) The charter agreement grants the charterer the option to extend the
period time charter for an additional 10 to 14 months period at a gross
daily charter rate of $9,000.
6) A period time charter at a gross daily charter rate linked to the
Baltic Panamax Index ("BPI") plus a premium.
7) The charter agreement grants the charterer the option to extend the
period time charter for an additional 10 to 15 months period at a gross
daily charter rate of $8,200.
8) 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.
9) The charter agreement grants the charterer the option to extend the
period time charter for an additional 10 to 14 months period at a gross
daily charter rate of $9,900.
10) The charter agreement grants the charterer the option to extend the
period time charter for an additional 11 to 14 months period at a gross
daily charter rate of $10,000.
11) 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 paying terms; all
other period 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 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 17, 2017 was:
2017 (remaining) 59% 2017 (full year) 64% 2018 18% 2019 8%
Capital expenditure requirements and liquidity
As of December 31, 2016, the remaining order book of the Company, excluding the Hull No. 1551 which had been contracted to be sold upon delivery in January 2017, consisted of two newbuild vessels, Hull No. 1146 and Hull No. 1552, which were scheduled to be delivered in 2017 and 2018 respectively. Proceeds from the agreed sale of Hull No. 1551 fully covered the associated capital expenditure requirements for this vessel.
As of December 31, 2016, the aggregate remaining capital expenditure requirements of the two newbuilds amounted to $50.8 million, consisting of $28.4 million payable in 2017, and $22.4 million payable in 2018.
As of December 31, 2016, we have agreed to $41.7 million of financing in total in respect of the $50.8 million of remaining capital expenditure requirements, consisting of an additional borrowing capacity of $24.8 million available under a sale and leaseback financing arrangement for Hull No. 1146 and an agreement to issue $16.9 million of preferred equity to an unaffiliated investor in 2018 in respect of Hull No. 1552.
As of December 31, 2016, we had liquidity of $104.8 million consisting of $93.6 million in cash and bank time deposits and $11.2 million in restricted cash, in addition to $41.7 million of financing arrangements.
As of February 17, 2017, the remaining order book of the Company consisted of one newbuild vessel, the Hull No. 1552, which is scheduled to be delivered in 2018.
As of February 17, 2017, the aggregate remaining capital expenditure requirements amounted to $32.4 million, consisting of $5.1 million payable in 2017, and $27.3 million payable in 2018.
As of February 17, 2017, we have agreed to $16.9 million of financing in respect of the $32.4 million of remaining capital expenditure requirements, consisting of an agreement to issue $16.9 million of preferred equity to an unaffiliated investor in 2018 in respect of Hull No. 1552.
As of February 17, 2017, we had liquidity of $114.0 million consisting of $101.9 million in cash and bank time deposits and $12.1 million in restricted cash, in addition to $16.9 million of financing arrangements.
Dividend Policy
The Board of Directors of the Company has not declared a dividend on the Company's common stock for the fourth quarter of 2016. The Company has 99,277,715 shares of common stock issued and outstanding as of February 17, 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 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: "Although the chartering market improved in the last quarter of 2016 from historical lows, it still remains at unprofitable levels. In 2016, we achieved positive operating cash flows supported by our low average daily operating expenses(5) of $3,698 per vessel which were consistent with our cost reducing efforts throughout the year. We have also improved our liquidity position through an additional public offering of common stock with gross proceeds of $17.2 million in December 2016. At present, a significant part of our fleet is employed in the period time charter market at levels which provide visibility of our cash flows and support cash positive operations for 2017, while maintaining upside potential through 41% of open days for the remainder of 2017. Overall we believe that the Company is well-positioned to withstand continued turbulence that may occur in the chartering market, while remaining well-positioned to take advantage of improved market conditions if the shipping markets turn."
Conference Call
On Friday, February 24, 2017 at 8.00 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 March 3, 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#
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 2016 Results
Net loss for the fourth quarter of 2016 was $4.6 million compared to net loss of $29.9 million during the same period in 2015, mainly due to the following factors:
Net revenues: Net revenues increased by 6% to $31.7 million for the fourth quarter of 2016, compared to $29.9 million for the same period in 2015, mainly due to an increase in charter rates. The Company operated 37.00 vessels on average during the fourth quarter of 2016, earning a TCE(6) rate of $8,936, compared to 36.00 vessels and a TCE rate of $8,251 during the same period in 2015.
Vessel operating expenses: Vessel operating expenses decreased by 7% to $12.6 million for the fourth quarter of 2016, compared to $13.5 million for the same period in 2015, while the average number of vessels increased by 3% to 37.00 vessels, from 36.00 vessels respectively. The decrease in operating expenses is due to a decrease in spares, store and various other operating expenses. Vessel operating expenses for the fourth quarter of 2016 included the cost of two dry-dockings, one of which was completed and partially expensed in January 2017, compared to three during the fourth quarter of 2015.
Impairment loss: Impairment loss amounted to zero for the fourth quarter of 2016, compared to $22.8 million for the same period in 2015, as a result of an impairment loss of $12.9 million due to the 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.
Gain on derivatives: Gain on derivatives was $0.3 million in the fourth quarter of 2016, compared to a gain of $0.7 million for the same period in 2015, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that we employ to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge part of the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts was 1.2 years as of December 31, 2016. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
Voyage expenses: Voyage expenses decreased by 50% to $1.5 million for the fourth quarter of 2016 compared to $3.0 million for the same period in 2015, mainly due to a decrease in vessel repositioning expenses as a result of improved market conditions.
Daily vessel operating expenses(7): Daily vessel operating expenses reduced by 9% to $3,711 for the fourth quarter of 2016 compared to $4,072 for the same period in 2015. Daily vessel operating expenses for the fourth quarter of 2016 include the cost of two dry dockings, one of which was completed and partially expensed in January 2017, compared to three during the same period in 2015.
Daily general and administrative expenses(7): Daily general and administrative expenses, which include daily management fees payable to our Managers(8) and daily costs incurred in relation to our operation as a public company, were reduced by 13% to $1,083 for the fourth quarter of 2016, compared to $1,238 for the same period in 2015.
Interest expenses: Interest expense increased to $5.1 million in the fourth quarter of 2016 compared to $4.2 million for the same period in 2015, as a result of the increase in the weighted average interest rate of our loans and credit facilities.
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 Twelve-Months Period
Ended December 31, Ended December 31,
---------------------- ----------------------
2015 2016 2015 2016
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REVENUES:
Revenues 31,198 32,944 132,375 113,959
Commissions (1,254) (1,234) (5,058) (4,187)
Net revenues 29,944 31,710 127,317 109,772
EXPENSES:
Voyage expenses (3,004) (1,490) (17,856) (7,679)
Vessel operating expenses (13,485) (12,633) (55,469) (49,519)
Depreciation (12,175) (12,686) (47,133) (49,485)
General and administrative
expenses (4,101) (3,687) (14,617) (15,381)
Other operating (loss)/
income - (364) - 794
Loss on sale of asset - - - (2,750)
Loss from inventory
valuation (146) - (1,432) -
Impairment loss (22,826) - (22,826) (17,163)
Operating (loss)/income (25,793) 850 (32,016) (31,411)
OTHER (EXPENSE) / INCOME:
Interest expense (4,244) (5,111) (11,650) (19,576)
Other finance costs (205) (266) (242) (1,735)
Interest income 32 130 86 515
Gain/(loss) on derivatives 692 251 (1,676) (620)
Foreign currency
gain/(loss) 61 (376) 347 (76)
Amortization and write-off
of deferred finance
charges (445) (115) (2,793) (3,063)
Net loss (29,902) (4,637) (47,944) (55,966)
Less Preferred dividend 3,550 3,495 14,200 14,025
Net loss available to common
shareholders (33,452) (8,132) (62,144) (69,991)
Loss per share (0.40) (0.09) (0.74) (0.83)
Weighted average number of
shares 83,504,266 87,364,672 83,479,636 84,526,411
Twelve Months Period Ended
December 31,
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2015 2016
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(In millions of U.S. Dollars)
CASH FLOW DATA
Net cash provided by operating activities $ 25.5 $ 13.5
Net cash (used in)/provided by investing
activities (182.2) 21.3
Net cash provided by/(used in) financing
activities 180.1 (83.9)
Net increase/(decrease) in cash and cash
equivalents 23.4 (49.1)
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, December 31,
2015 2016
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ASSETS
Cash, restricted cash and time deposits 196,748 94,813
Other current assets 14,419 16,195
Assets held for sale 31,995 -
Vessels, net 988,161 1,038,719
Advances for vessel acquisition and vessels
under construction 68,356 13,007
Restricted cash non-current 7,837 10,002
Other non-current assets 2,115 1,017
Total assets 1,309,631 1,173,753
LIABILITIES AND EQUITY
Other current liabilities 11,535 11,603
Current portion of long-term debt 77,467 12,177
Liability directly associated with assets
held for sale 16,724 -
Long-term debt, net of current portion 569,399 569,781
Other non-current liabilities 360 1,656
Shareholders' equity 634,146 578,536
Total liabilities and equity 1,309,631 1,173,753
TABLE 1
RECONCILIATION OF ADJUSTED NET LOSS, EBITDA, ADJUSTED EBITDA
AND ADJUSTED LOSS PER SHARE
Three-Months Twelve-Months
Period Ended December Period Ended December
31, 31,
---------------------- ----------------------
(In thousands of U.S. 2015 2016 2015 2016
Dollars except for share
and per share data)
---------- ---------- ---------- ----------
Net Loss - Adjusted Net Loss
Net loss (29,902) (4,637) (47,944) (55,966)
Plus Loss on sale of assets - - - 2,750
Plus (Gain)/loss on
derivatives (692) (251) 1,676 620
Plus Loss from inventory
valuation 146 - 1,432 -
Less Other operating
loss/(income) - 364 - (794)
Plus Impairment loss 22,826 - 22,826 17,163
Less Foreign currency (61) 376 (347) 76
(gain)/loss
Adjusted Net loss (7,683) (4,148) (22,357) (36,151)
EBITDA - Adjusted EBITDA
Net loss (29,902) (4,637) (47,944) (55,966)
Plus Net Interest expense 4,212 4,981 11,564 19,061
Plus Depreciation 12,175 12,686 47,133 49,485
Plus Amortization 445 115 2,793 3,063
EBITDA (13,070) 13,145 13,546 15,643
Plus Loss on sale of assets - - - 2,750
Plus (Gain)/loss on
derivatives (692) (251) 1,676 620
Plus Loss from inventory
valuation 146 - 1,432 -
Less Other operating
loss/(income) - 364 - (794)
Plus Impairment loss 22,826 - 22,826 17,163
Less Foreign currency (61) 376 (347) 76
(gain)/loss
ADJUSTED EBITDA 9,149 13,634 39,133 35,458
Loss per share
Net loss (29,902) (4,637) (47,944) (55,966)
Less Preferred dividend 3,550 3,495 14,200 14,025
Net loss available to common (33,452) (8,132) (62,144) (69,991)
shareholders
Weighted average number of 83,504,266 87,364,672 83,479,636 84,526,411
shares
Loss per share (0.40 ) (0.09) (0.74) (0.83)
Adjusted Loss per share
Adjusted net loss (7,683) (4,148) (22,357) (36,151)
Less Preferred dividend 3,550 3,495 14,200 14,025
Adjusted net loss available (11,233) (7,643) (36,557) (50,176)
to common shareholders
Weighted average number of 83,504,266 87,364,672 83,479,636 84,526,411
shares
Adjusted Loss per share (0.13) (0.09) (0.44) (0.59)
EBITDA, Adjusted EBITDA, Adjusted Net loss, Adjusted Net loss available to
common shareholders and Adjusted loss per share are not recognized
measurements under US GAAP.
Adjusted Net loss represents Net loss before loss on sale of assets, loss
from inventory valuation, gain/(loss) on derivatives, impairment loss, other
operating income/(loss) and gain/(loss) on foreign currency. Adjusted Net
loss available to common shareholders represents Adjusted Net loss less
Preferred dividend.
EBITDA represents Net income/(loss) before interest, income tax expense,
depreciation and amortization. Adjusted EBITDA represents EBITDA before loss
on sale of assets, loss from inventory valuation, gain/(loss) on
derivatives, impairment loss, other operating income/(loss) and gain/(loss)
on foreign currency. EBITDA and Adjusted EBITDA are not recognized
measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's
management and investors by increasing the comparability of the Company's
fundamental performance from period to period and against the fundamental
performance of other companies in the Company's industry that provide EBITDA
and Adjusted EBITDA information. The Company believes that EBITDA and
Adjusted EBITDA are useful in evaluating the Company's operating performance
compared to that of other companies in the Company's industry because the
calculation of EBITDA generally eliminates the effects of financings, income
taxes and the accounting effects of capital expenditures and acquisitions
and the calculation of Adjusted EBITDA generally further eliminates the
effects from loss on sale of assets, loss from inventory valuation,
impairment loss, other operating income/(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,
2015 2016 2015 2016
FLEET DATA
Number of vessels at period end 36 37 36 37
Average age of fleet (in years) 6.17 6.68 6.17 6.68
Ownership days (1) 3,312 3,404 12,674 13,390
Available days (2) 3,265 3,382 12,482 13,329
Operating days (3) 3,136 3,321 12,242 13,024
Fleet utilization (4) 94.7% 97.6% 96.6% 97.3%
Average number of vessels in the
period (5) 36.00 37.00 34.72 36.58
AVERAGE DAILY RESULTS
Time charter equivalent rate (6) $ 8,251 $ 8,936 $ 8,770 $ 7,659
Daily vessel operating expenses
(7) $ 4,072 $ 3,711 $ 4,377 $ 3,698
Daily general and administrative
expenses (8) $ 1,238 $ 1,083 $ 1,153 $ 1,149
(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.
(1) Adjusted Net loss is a non-GAAP measure. Adjusted Net loss represents Net loss before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives, impairment loss, other operating income/(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, loss from inventory valuation, impairment loss, other operating income/ (loss) and gain/(loss) on foreign currency. See Table 1.
(4) Earnings/(loss) per share and Adjusted Earnings/(loss) per share are each non-GAAP measures and represent Net Income/(loss) and Adjusted Net income/(loss) less preferred dividend divided by the weighted average number of shares respectively. See Table 1.
(5) See Table 2.
(6) Time charter equivalent rates, or TCE rate, represents the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during such period.
(7) See Table 2.
(8) Safety Management Overseas S.A. and Safe Bulkers Management Limited, each a related party referred in this press release as "our Manager" and collectively "our Managers".
For further information please contact: Company Contact: Dr. Loukas Barmparis President Safe Bulkers, Inc. Tel.: +30 2 111 888 400 +357 25 887 200 E-Mail: [email protected] 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: [email protected]
Source: Safe Bulkers, Inc.