Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three months period ended
March 31, 2020.
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Financial
highlights |
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In million U.S. Dollars except per share data |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
Net Revenues |
45.7 |
|
53.2 |
|
50.7 |
|
45.5 |
|
48.3 |
|
Net (loss)/income |
(9.9 |
) |
3.6 |
|
5.2 |
|
1.8 |
|
5.4 |
|
Adjusted Net (loss)/ income 1 |
(10.2 |
) |
3.5 |
|
5.9 |
|
1.7 |
|
5.7 |
|
EBITDA |
9.7 |
|
23.1 |
|
24.5 |
|
21.2 |
|
24.6 |
|
Adjusted EBITDA 2 |
9.4 |
|
23.1 |
|
25.1 |
|
21.0 |
|
24.9 |
|
(Loss)/Earnings per share basic and diluted 3 |
(0.12 |
) |
0.01 |
|
0.02 |
|
(0.01 |
) |
0.03 |
|
Adjusted (loss)/earnings per share basic and diluted 3 |
(0.13 |
) |
0.01 |
|
0.03 |
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(0.01 |
) |
0.03 |
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Average
Daily results in U.S. Dollars |
|
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Time charter equivalent rate 4 |
9,089 |
|
13,707 |
|
13,311 |
|
11,970 |
|
12,280 |
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Daily vessel operating expenses 5 |
4,771 |
|
5,103 |
|
4,448 |
|
4,615 |
|
4,153 |
|
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses 6 |
4,285 |
|
4,540 |
|
4,053 |
|
4,283 |
|
4,150 |
|
Daily general and administrative expenses 7 |
1,371 |
|
1,414 |
|
1,363 |
|
1,366 |
|
1,374 |
|
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In million U.S.
Dollars |
|
|
|
|
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Total Cash 8 |
109.3 |
|
120.1 |
|
87.0 |
|
90.2 |
|
82.9 |
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Liquidity 9 |
145.7 |
|
178.0 |
|
87.0 |
|
90.2 |
|
82.9 |
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Total Debt 10 |
605.2 |
|
601.0 |
|
563.8 |
|
568.5 |
|
563.5 |
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Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: ''We thank our crews, as they had to stay on board during the
global lockdown and continue to perform their duties longer than
usual with dedication, expecting that crew changes will soon be
allowed. Our Company is well prepared for this outbreak, having
liquidity of $127.2 million as of May 29, 2020, lean operational
characteristics, smooth debt profile for the next two years,
ability to develop long period time charter contracts to provide
visibility of future cash flows and the responsiveness required in
such unique circumstances''.
Update on Covid-19, company's actions and
status
On March 11, 2020, the World Health Organization
declared the COVID-19 outbreak a pandemic. In response to the
outbreak, many countries, ports and organizations, including those
where we conduct a large part of our operations, have implemented
measures to combat the outbreak, such as quarantines and travel
restrictions. Such measures have and may continue to cause severe
trade disruptions and together with projections of contraction of
global growth in 2020 will adversely impact the dry bulk industry.
The extent to which COVID-19 will impact the Company’s future
results of operations and financial condition will depend on future
developments, which are highly uncertain and cannot be predicted,
including new information which may emerge concerning the severity
of the virus and the actions to contain or treat its impact and
political implications that could further impact world trade and
global growth among others. Accordingly, an estimate of the
long-term impact of the pandemic on the dry bulk industry, our
operations and financial performance cannot be made at this
time.
The Company has taken measures to protect its
seafarers' and shore employees' health and well-being, to keep its
vessels sailing servicing its charterers and to mitigate and
address the risks, effects and impact of COVID-19 on our operations
and financial performance, the current status of which is
summarized below.
The Company's and our Manager's officers have
conducted our business efficiently through remote access since
March 20, 2020. Shore operations have reopened since May 4, 2020.
Shore premises are sanitized regularly, have been supplied with
protective equipment and follow relevant recommendations provided
by public health authorities.
In relation to our seafarers onboard, our COVID-19
Management Plan and relevant circulars are being disseminated to
the vessels describing procedures, first response practices to
potential incidents, use of protective measures that are being
supplied on board, in order to minimize the risk of quarantine of
the vessel. Crew members have been instructed to have minimum or
zero contact with port personnel, crew shore leaves have been
suspended and ordinary scheduled superintendent and third party
visits have been postponed, excluding presence for dry dockings,
vessel deliveries and urgent circumstances.
In certain ports where we conduct a large part of
our operations vessels may have to undergo a quarantine period
before arriving or berthing. We did not have COVID-19 incidents on
board and all our vessels are in operation.
We have assured the normal supply of bunkers,
provisions and potable water at main ports under specific
procedures to avoid contact with port personnel. We are cooperating
closely with certain ports to provide stores and spares. Despite
the restructuring of the air freight network and the shortage of
staff and customs officials globally, spare parts for vessels are
being supplied, however slower and more costly than usual.
Crew changes have been suspended due to global
lockdown in ports and airports. The Company keeps close contact
with seafarers on board and their families on shore. Furthermore,
free internet access is offered on-board to relieve the stress of
seafarers due to the extended service. We have cooperated with flag
administrations and national Standards of Training, Certifications
and Watch keeping ('STCW') competent authorities to obtain crew
employment contract and certificates extensions so as to address
suspension of crew changes due to COVID-19, where applicable. A
detailed plan of crew changes has been developed and close
cooperation with manning agencies and ex-crew currently on shore
has been maintained, in order to increase crew availability and
meet replacement demand once crew changes resume.
Critical technical services are maintained and the
program of dry dockings, ballast water treatment systems and
scrubber installations continues, having concluded 6 dry dockings,
5 ballast water treatment systems and 4 scrubber installations.
Common stock issuance and repurchase
program of common and preferred shares
In April 2020, the Company issued to an
unaffiliated third party 2,951,699 shares of common stock to pay
$3.3 million as part of the delivery installment, of its
Post-Panamax class vessel on order, which was delivered on April
16, 2020.
The Company as part of the latest ongoing stock
repurchase program, has repurchased as of May 29, 2020, 3,346,406
shares of common stock all of which have been cancelled. As of
May 29, 2020, the Company had 102,400,276 shares of common
stock issued and outstanding.
Chartering our fleetOur vessels
are used to transport bulk cargoes, particularly coal, grain and
iron ore, along worldwide shipping routes. We intend to employ our
vessels on both period time charters and spot time charters,
according to our assessment of market conditions, with some of the
world’s largest consumers of marine drybulk transportation
services. The vessels we deploy on period time charters provide us
with visible and relatively stable cash flow, while the vessels we
deploy in the spot market allow us to maintain our flexibility in
low charter market conditions. The Company during the first quarter
of 2020 has opted to maintain the majority of its fleet in the spot
charter market. We operated 41.00 vessels on average during the
first quarter of 2020, earning a TCE rate11, representing charter
revenues net of commissions and voyage expenses divided by the
number of available days, of $9,089, compared to 41.00 vessels and
a TCE rate of $12,280 during the same period in 2019. Our
contracted employment profile is presented below in Table 1.
Table 1: Contracted employment profile of
fleet ownership days as of May 29, 2020
2020 (remaining) |
44 % |
2020 (full year) |
67 % |
2021 |
17 % |
2022 |
12 % |
Detailed employment profile is presented in Table
7. Scrubber benefit for scrubber fitted vessels is earned on the
basis of fuel consumption of heavy fuel oil and price differential
between heavy fuel oil and compliant fuel cost for the specific
voyage and is either incorporated as part of the daily charter hire
in Table 7, or in cases where it is based on actual consumption it
is not incorporated in the stated daily charter hire.
In May 2020, the Company entered into three period
time charters for non-scrubber fitted Panamax class vessels, for a
duration of 5-years each, with a forward delivery in the third
quarter of 2020 at a gross daily charter rate of $11,750 for the
first two years and a gross daily charter rate linked to the Baltic
Exchange Kamsarmax Index (“BPI-82 5TC”) times 97% minus $2,150, for
the remaining three years. In addition, the Company entered into a
period time charter for a non-scrubber fitted Post-Panamax class
vessel, for a duration of 11 to 13 months, with delivery date
within the second quarter of 2020 at a gross daily charter rate
linked to the BPI-82 5TC times 109%. The anticipated
aggregate gross revenue of the four period time charters based on
the BPI-82 5TC Forward Freight Agreement curve on May 26, 2020, is
approximately $54.7 million.
Vessel acquisition - Orderbook
In April 2020, the Company took delivery from an
unaffiliated seller of a Japanese built, 85,000 dwt, resale,
newbuild vessel named Troodos Oak. The Company does not have any
other newbuilds on order or capital expenditure requirements in
relation to orderbook.
Liquidity
As of March 31, 2020, we had liquidity of $145.7
million consisting of $92.6 million in cash and bank time deposits,
$16.7 million in restricted cash, $10.0 million available
under the unsecured revolving credit facility and $26.4 million
secured under a commitment from a bank for the post-delivery
financing of a newbuild Post-Panamax class vessel.
As of May 29, 2020, we had liquidity of $127.2
million consisting of $108.0 million in cash and bank time
deposits, $19.2 million in restricted cash, having taken delivery
and drawn down the financing of our newbuild.
Debt - Leverage
As of March 31, 2020, our consolidated debt before
deferred financing costs was $610.1 million and our consolidated
leverage12 was 63% versus 58% as of March 31, 2019.
Interest rate derivatives
In March 2020, the Company entered into five
pay-fixed, receive-variable interest rate derivative contracts
commencing March 2020 and maturing September 2024, at an average
fixed rate of 0.765% and for an aggregate notional amount of $60
million.
In May 2020, the Company entered into a further
pay-fixed, receive-variable interest rate derivative contract
commencing May 2020 and maturing May 2025, at a fixed rate of 0.40%
and for a notional amount of $10 million.
Financing - refinancing and debt
profile
Following the quarter-end the Company drew down an
aggregate of $36.4 million consisting of $10.0 million available
under the unsecured revolving credit facility and $26.4 million
loan facility for the MV Troodos Oak, and pushed back $39.1 million
of payments for certain of its loan and credit facilities scheduled
for 2020 and 2021 to 2022 and 2023, expanding the average tenor,
creating a reduced repayment schedule until 2021, maintaining the
same financial covenants, strengthening the balance sheet and
increasing its financial flexibility.
The loan repayment schedule of the Company as of
March 31, 2020 and on a pro-forma basis taking into account the
transactions described above, is presented below in Table 2.
Table 2: Loan repayment Schedule on an
annual basis( in USD millions)
|
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
Pro-forma basis |
44.1 |
72.4 |
113.6 |
120.0 |
171.8 |
66.8 |
16.2 |
41.6 |
646.5 |
March 31, 2020 |
51.3 |
95.7 |
93.1 |
78.5 |
185.4 |
65.1 |
14.4 |
26.6 |
610.1 |
Environmental Social Responsibility -
Environmental investments
In the context of our Environmental Social
Responsibility policies the Company is undertaking environmental
investments mainly in scrubbers and ballast water treatment
systems, the progress of which is presented below in Table 3. Our
environmental investments as of March 31, 2020, were $55.8
million.
Table 3: Environmental investments
schedule
|
Completed installations until May 29, 2020 |
Expected installations in Q2 2020 |
Expected installations in Q3 2020 |
BWTS |
25 |
4 |
4 |
Scrubbers |
18* |
1 |
1 |
* MV Martine, MV Venus Horizon, MV Venus History,
MV Andreas K, MV Pedhoulas Cherry, MV Eleni, MV Venus Heritage, MV
Pedhoulas Farmer, MV Panayiota K, MV Sophia, MV Marina, MV
Pedhoulas Rose, MVPedhoulas Fighter, MV Pedhoulas Builder, MV Agios
Spyridonas, MV Troodos Sun, MV Troodos Air, MV Mount Troodos.
The estimated down time in relation to Dry-dockings
and equipment retrofits is presented in Table 4.
Table 4: Estimated down time in relation
to Dry dockings and equipment retrofits.
|
Down time in Days ** |
|
Q2 2020 |
Q3 2020 |
Number of vessels |
4 |
4 |
Total down time |
140 |
90 |
** Down time includes scheduled dry-docking or
special surveys to be performed concurrently with scrubber and
ballast water system installation where applicable.
Bunker fuel contracts
The Company enters, from time to time, into bunker
fuel contracts, with the objective of reducing the risk arisingfrom
changes in the price differential between very low sulphur fuel oil
and high sulphur fuel oil.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the first quarter of 2020. The Company
had 102,400,276 shares of common stock issued and outstanding as of
May 29, 2020.
The Company declared a cash dividend of $0.50 per
share on each of its 8.00% Series C Cumulative Redeemable Perpetual
Preferred Shares (NYSE: SB.PR.C) and 8.00% Series D Cumulative
Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D) for the
period from January 30, 2020 to April 29, 2020, which was paid on
April 30, 2020 to the respective shareholders of record as of April
23, 2020.
A Company’s subsidiary declares a cash dividend on
a quarterly basis on each of such subsidiary’s 2.95% Series A
Cumulative Redeemable Perpetual Preferred Shares (‘Series A
shares’) to the respective shareholders of record, presented under
the caption “Mezzanine Equity” in the condensed consolidated
balance sheets. The aggregate cash dividend declared for the Series
A shares for the period from January 1, 2020 to March 31, 2020,
which was paid on March 31, 2020, was $0.1 million. The aggregate
cash dividend declared for the Series A shares for the period from
April 1, 2020 to June 30, 2020, payable on June 30, 2020, is $0.1
million.
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.
Conference Call
On Tuesday, June 9, 2020 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 (844)
824-7423 (US Toll Free Dial In), 0(800) 028-8438 (UK Toll Free Dial
In) or 1 (918) 922-6416 (International Dial In). Please provide
conference ID “1274637” to the operator.
A telephonic replay of the conference call will be
available until June 16, 2020, by dialing 1 (855) 859-2056 (US Toll
Free Dial In) or 1 (404) 537-3406 (US Standard Dial In). Access
Code: 1274637#
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 First Quarter
2020 Results
Net loss for the first quarter of 2020 amounted
to $9.9 million compared to net income of $5.4 million during the
same period in 2019, mainly due to the following factors:
Net revenues: Net revenues, despite the
additional revenues from our scrubber fitted vessels, decreased by
5% to $45.7 million for the first quarter of 2020, compared to
$48.3 million for the same period in 2019 mainly as a result of
trade disruptions related to the COVID-19 pandemic.
Vessel operating expenses: Vessel operating
expenses increased by 16% to $17.8 million for the first quarter of
2020 compared to $15.3 million for the same period in 2019, mainly
as a result of: i) dry docking expense of $1.8 million related to
two full and three partially completed dry dockings during the
first quarter of 2020, compared to none for the same period of 2019
and ii) spares of $2.5 million for the first quarter of 2020,
compared to $1.9 million for the same period in 2019 and iii)
repairs and maintenance of $2.7 million for the first quarter of
2020, compared to $0.8 million for the same period in 2019. The
Company expenses dry-docking and pre-delivery costs as incurred,
which costs may vary from period to period. Excluding
dry-docking and pre-delivery costs of $1.8 and $0.0 million for the
first quarter of 2020 and 2019, respectively, vessel operating
expenses increased by 4% to $16.0 million for the first quarter of
2020, compared to $15.3 million for the same period in 2019 due to
completed and forthcoming dry-dockings affecting costs of spares
and repairs and maintenance as above. Dry-docking expense is
related to the number of dry-dockings in each period and
pre-delivery expenses to the number of vessel deliveries and second
hand acquisitions in each period. Certain other shipping companies
may defer and amortize dry-docking expense and many do not include
dry-docking expenses within vessel operating expenses costs and
present these separately.
Depreciation: Depreciation increased by 7% to
$13.1 million for the first quarter of 2020, compared to $12.3
million for the same period in 2019, as a result of the
commencement of depreciation of environmental investmentsthat were
completed subsequent to the first quarter of 2019.
Interest expense: Interest expense decreased to
$6.4 million in the first quarter of 2020 compared to $7.0 million
for the same period in 2019, as a result of the decreased USD
LIBOR13 affecting the weighted average interest rate of our loans
and credit facilities.
Voyage expenses: Voyage expenses increased to
$13.2 million for the first quarter of 2020 compared to $3.0
million for the same period in 2019, as a result of increased
vessel repositioning expenses, higher loss on bunkers sales and
consumption costs for scrubber fitted vessels under charter
agreements which provide for variable consideration based on the
bunker consumption.
Daily vessel operating expenses 14: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, increased by
15% to $4,771 for the first quarter of 2020 compared to $4,153 for
the same period in 2019. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses increased by 3% to $4,285 for
the first quarter of 2020 compared to $4,150 for the same period in
2019.
Daily general and administrative expenses 14:
Daily general and administrative expenses, which include management
fees payable to our Managers15 and daily company administrations
expenses, remained stable at $1,371 for the first quarter of 2020,
compared to $1,374 for the same period in 2019.
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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) |
|
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|
Three-Months Period Ended March
31, |
|
2019 |
|
2020 |
REVENUES: |
|
|
|
Revenues |
50,482 |
|
|
47,586 |
|
Commissions |
(2,197 |
) |
|
(1,871 |
) |
Net revenues |
48,285 |
|
|
45,715 |
|
EXPENSES: |
|
|
|
Voyage expenses |
(2,973 |
) |
|
(13,203 |
) |
Vessel operating expenses |
(15,323 |
) |
|
(17,799 |
) |
Depreciation |
(12,280 |
) |
|
(13,107 |
) |
General and administrative expenses |
(5,071 |
) |
|
(5,115 |
) |
Operating income/(loss) |
12,638 |
|
|
(3,509 |
) |
OTHER (EXPENSE) / INCOME: |
|
|
|
|
|
|
Interest expense |
(7,029 |
) |
|
(6,424 |
) |
Other finance cost |
(39 |
) |
|
(153 |
) |
Interest income |
422 |
|
|
384 |
|
Gain on derivatives |
— |
|
|
47 |
|
Foreign currency (loss)/gain |
(239 |
) |
|
201 |
|
Amortization and write-off of deferred finance charges |
(334 |
) |
|
(495 |
) |
Net income/(loss) |
5,419 |
|
|
(9,949 |
) |
Less Preferred dividend |
2,872 |
|
|
2,872 |
|
Less Mezzanine equity measurement |
— |
|
|
82 |
|
Net income/(loss) available to common
shareholders |
$ |
2,547 |
|
|
(12,903 |
) |
Earnings/(loss) per share basic and
diluted |
0.03 |
|
|
(0.12 |
) |
Weighted average number of shares |
101,564,355 |
|
|
103,408,846 |
|
|
|
|
|
|
|
|
|
Three-Months Period Ended March
31, |
|
|
2019 |
|
2020 |
(In millions of U.S.
Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating activities |
|
9.8 |
|
|
2.6 |
|
Net cash used in investing
activities |
|
(3.5 |
) |
|
(6.3 |
) |
Net cash used in financing
activities |
|
(17.3 |
) |
|
(3.2 |
) |
Net decrease in cash and cash
equivalents |
|
(11.0 |
) |
|
(6.9 |
) |
|
|
|
|
|
|
|
SAFE BULKERS, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)(In
thousands of U.S. Dollars) |
|
|
|
|
|
|
|
December 31, 2019 |
|
March 31, 2020 |
ASSETS |
|
|
|
|
Cash, time deposits, and restricted cash |
|
106,378 |
|
|
92,614 |
|
Other current assets |
|
29,611 |
|
|
35,825 |
|
Vessels, net |
|
944,706 |
|
|
936,219 |
|
Advances for vessels |
|
19,294 |
|
|
23,005 |
|
Restricted cash non-current |
|
13,701 |
|
|
16,701 |
|
Other non-current assets |
|
953 |
|
|
1,058 |
|
Total assets |
|
1,114,643 |
|
|
1,105,422 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current portion of long-term debt |
|
64,054 |
|
|
74,242 |
|
Other current liabilities |
|
22,730 |
|
|
24,549 |
|
Long-term debt, net of current portion |
|
536,995 |
|
|
531,007 |
|
Other non-current liabilities |
|
922 |
|
|
2,400 |
|
Mezzanine equity |
|
17,200 |
|
|
17,155 |
|
Shareholders’ equity |
|
472,742 |
|
|
456,069 |
|
Total liabilities and equity |
|
1,114,643 |
|
|
1,105,422 |
|
TABLE 5 RECONCILIATION OF ADJUSTED NET
INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS)
PER SHARE |
|
|
|
|
|
Three-Months Period Ended March
31, |
(In
thousands of U.S. Dollars except for share and per share data) |
|
2019 |
|
2020 |
Net Income/(Loss) -
Adjusted Net Income/(Loss) |
|
|
|
|
Net Income/(Loss) |
|
5,419 |
|
(9,949 |
) |
Less Gain on derivatives |
|
— |
|
(47 |
) |
Plus
Foreign currency loss/(gain) |
|
239 |
|
(201 |
) |
Adjusted Net
income/(loss) |
|
5,658 |
|
(10,197 |
) |
EBITDA - Adjusted EBITDA |
|
|
|
|
Net income/(loss) |
|
5,419 |
|
(9,949 |
) |
Plus Net
Interest expense |
|
6,607 |
|
6,040 |
|
Plus
Depreciation |
|
12,280 |
|
13,107 |
|
Plus
Amortization |
|
334 |
|
495 |
|
EBITDA |
|
24,640 |
|
9,693 |
|
Less Gain on derivatives |
|
— |
|
(47 |
) |
Plus Foreign currency
loss/(gain) |
|
239 |
|
(201 |
) |
ADJUSTED EBITDA |
|
24,879 |
|
9,445 |
|
Earnings per share |
|
|
|
|
Net income/(loss) |
|
5,419 |
|
(9,949 |
) |
Less
Preferred dividend |
|
2,872 |
|
2,872 |
|
Less
Mezzanine equity measurement |
|
— |
|
82 |
|
Net
income/(loss) available to common shareholders |
|
2,547 |
|
(12,903 |
) |
Weighted
average number of shares |
|
101,564,355 |
|
103,408,846 |
|
Earnings/(loss) per share |
|
0.03 |
|
(0.12 |
) |
Adjusted
Earnings/(Loss) per share |
|
|
|
|
|
Adjusted Net
Income/(Loss) |
|
5,658 |
|
(10,197 |
) |
Less
Preferred dividend |
|
2,872 |
|
2,872 |
|
Less Mezzanine equity
measurement |
|
— |
|
82 |
|
Adjusted Net income/(loss)
available to common shareholders |
|
2,786 |
|
(13,151 |
) |
Weighted
average number of shares |
|
101,564,355 |
|
103,408,846 |
|
Adjusted
Earnings/(Loss) per share |
|
0.03 |
|
(0.13 |
) |
|
|
|
|
|
|
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, early redelivery cost and
gain/(loss) on foreign currency.
- Adjusted Net income/(loss) represents Net income/(loss) before
loss on sale of assets, gain/(loss) on derivatives, early
redelivery cost and gain/(loss) on foreign currency.
- Adjusted earnings/(loss) per share represents Adjusted Net
income/(loss) less preferred dividend and mezzanine equity
measurement 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,
early redelivery cost 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,
early redelivery cost 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 and Adjusted earnings 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/(loss) 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 6: FLEET DATA AND AVERAGE DAILY
INDICATORS |
|
|
|
Three-Months Period Ended March
31, |
|
2019 |
|
2020 |
FLEET DATA |
|
|
|
Number of vessels at period’s
end |
41 |
|
|
41 |
|
Average age of fleet (in
years) |
8.58 |
|
|
9.58 |
|
Ownership days (1) |
3,690 |
|
|
3,731 |
|
Available days (2) |
3,690 |
|
|
3,577 |
|
Average number of vessels in
the period (3) |
41.00 |
|
|
41.00 |
|
AVERAGE DAILY RESULTS |
|
|
|
Time charter equivalent rate (4) |
$ |
12,280 |
|
|
$ |
9,089 |
|
Daily vessel operating
expenses (5) |
$ |
4,153 |
|
|
$ |
4,771 |
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (6) |
$ |
4,150 |
|
|
$ |
4,285 |
|
Daily general and
administrative expenses (7) |
$ |
1,374 |
|
|
$ |
1,371 |
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
|
|
|
Revenues |
$ |
50,482 |
|
|
$ |
47,586 |
|
Less commissions |
(2,197 |
) |
|
(1,871 |
) |
Less voyage expenses |
(2,973 |
) |
|
(13,203 |
) |
Time charter equivalent
revenue |
$ |
45,312 |
|
|
$ |
32,512 |
|
Available days (2) |
3,690 |
|
|
3,577 |
|
Time charter equivalent rate
(4) |
$ |
12,280 |
|
|
$ |
9,089 |
|
_____________
(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) Average
number of vessels in the period is calculated by dividing ownership
days in the period by the number of days in that period. (4) 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. TCE
rate is a standard shipping industry performance measure used
primarily to compare daily earnings generated by vessels on period
time charters and spot time charters with daily earnings generated
by vessels on voyage charters, because charter rates for vessels on
voyage charters are generally not expressed in per day amounts,
while charter rates for vessels on period time charters and spot
time charters generally are expressed in such amounts. We have only
rarely employed our vessels on voyage charters and, as a result,
generally our TCE rates approximate our time charter rates. (5)
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period. Vessel operating expenses include crewing, insurance,
lubricants, spare parts, provisions, stores, repairs, maintenance
including dry-docking, statutory and classification expenses and
other miscellaneous items. (6) Daily vessel operating expenses
excluding dry-docking and pre-delivery expenses are calculated by
dividing vessel operating expenses excluding dry-docking and
pre-delivery expenses for the relevant period by ownership days for
such period. Dry-docking expenses include costs of shipyard, paints
and agent expenses and pre-delivery expenses include initially
supplied spare parts, stores, provisions and other miscellaneous
items provided to a newbuild or second hand acquisition prior to
their operation. (7) Daily general and administrative expenses are
calculated by dividing general and administrative expenses for the
relevant period by ownership days for such period. Daily general
and administrative expenses include daily management fees payable
to our Managers and daily company administration expenses.
Table 7: Detailed fleet and employment profile as of
May 29, 2020 |
Vessel
Name |
DWT |
Year Built |
Country of construction |
Daily Gross Charter Rate1 |
Charter Duration2 |
Panamax |
Maria |
76,000 |
2003 |
Japan |
$9,349 |
February 2020 |
December 2020 |
Koulitsa |
76,900 |
2003 |
Japan |
$5844 |
April 2020 |
July 2020 |
Paraskevi |
74,300 |
2003 |
Japan |
$9,118 |
April 2020 |
July 2020 |
Vassos |
76,000 |
2004 |
Japan |
$8,043 |
April 2020 |
July 2020 |
Katerina |
76,000 |
2004 |
Japan |
$8,094 |
March 2020 |
December 2020 |
Maritsa |
76,000 |
2005 |
Japan |
$9,464 |
February 2020 |
December 2020 |
Efrossini |
75,000 |
2012 |
Japan |
$7,916 |
May 2020 |
August 2020 |
Zoe 8 |
75,000 |
2013 |
Japan |
$6,141 |
April 2020 |
August 2020 |
Kypros Land 8 |
77,100 |
2014 |
Japan |
$7,818 |
May 2020 |
August 2020 |
Kypros Sea |
77,100 |
2014 |
Japan |
$8,862 |
April 2020 |
July 2020 |
Kypros Bravery11 |
78,000 |
2015 |
Japan |
$9,081 $11,750 BPI-82 5TC*97%-$2,150 |
February 2020 August 2020 August 2022 |
June 2020 August 2022 August 2025 |
Kypros Sky 6, 11 |
77,100 |
2015 |
Japan |
$8,836 $11,750 BPI-82 5TC*97%-$2,150 |
April 2020 August 2020 August 2022 |
July 2020 August 2022 August 2025 |
Kypros Loyalty11 |
78,000 |
2015 |
Japan |
$6,000 $11,750 BPI-82 5TC*97%-$2,150 |
May 2020 August 2020 August 2022 |
July 2020 August 2022 August 2025 |
Kypros Spirit 6 |
78,000 |
2016 |
Japan |
$12,000 |
May 2020 |
August 2020 |
Kamsarmax |
Pedhoulas Merchant |
82,300 |
2006 |
Japan |
$6,850 |
April 2020 |
June 2020 |
Pedhoulas Trader |
82,300 |
2006 |
Japan |
$7,431 |
March 2020 |
June 2020 |
Pedhoulas Leader |
82,300 |
2007 |
Japan |
$8,185 |
May 2020 |
August 2020 |
Pedhoulas Commander |
83,700 |
2008 |
Japan |
$9,950 |
June 2019 |
June 2021 |
Pedhoulas Builder10 |
81,600 |
2012 |
China |
$7,650 |
April 2020 |
July 2020 |
Pedhoulas Fighter10 |
81,600 |
2012 |
China |
$7,815 |
May 2020 |
August 2020 |
Pedhoulas Farmer 3, 10 |
81,600 |
2012 |
China |
$9,078 |
March 2020 |
June 2020 |
Pedhoulas Cherry10 |
82,000 |
2015 |
China |
$7,855 |
April 2020 |
August 2020 |
Pedhoulas Rose 3, 10 |
82,000 |
2017 |
China |
$11,885 |
March 2020 |
June 2020 |
Pedhoulas Cedrus |
81,800 |
2018 |
Japan |
$8,000 |
May 2020 |
August 2020 |
Post-Panamax |
Marina10 |
87,000 |
2006 |
Japan |
$9,456 |
April 2020 |
July 2020 |
Xenia |
87,000 |
2006 |
Japan |
$6,647 |
April 2020 |
July 2020 |
Sophia 10 |
87,000 |
2007 |
Japan |
$7,900 |
May 2020 |
June 2020 |
Eleni10 |
87,000 |
2008 |
Japan |
$11,500 |
May 2020 |
July 2020 |
Martine10 |
87,000 |
2009 |
Japan |
$6,309 |
April 2020 |
July 2020 |
Andreas K10 |
92,000 |
2009 |
South Korea |
$6,811 |
February 2020 |
June 2020 |
Panayiota K 7, 10 |
92,000 |
2010 |
South Korea |
$8,550 |
May 2020 |
July 2020 |
Agios Spyridonas 7, 10 |
92,000 |
2010 |
South Korea |
$9,466 |
May 2020 |
July 2020 |
Venus Heritage 8, 9 |
95,800 |
2010 |
Japan |
$9,100 |
April 2020 |
June 2020 |
Venus History 8, 10 |
95,800 |
2011 |
Japan |
$11,500 |
June 2020 |
July 2020 |
Venus Horizon10 |
95,800 |
2012 |
Japan |
$8,850 |
June 2020 |
July 2020 |
Troodos Sun 9 |
85,000 |
2016 |
Japan |
$10,500 |
May 2020 |
July 2020 |
Troodos Air10 |
85,000 |
2016 |
Japan |
$7,986 |
May 2020 |
July 2020 |
Troodos Oak 12 |
85,000 |
2020 |
Japan |
BPI -82 5TC * 109% |
June 2020 |
May 2021 |
Capesize |
Mount Troodos10 |
181,400 |
2009 |
Japan |
BCI+80% Scrubber Benefit |
April 2020 |
June 2021 |
Kanaris4 |
178,100 |
2010 |
China |
$26,562 |
September 2011 |
September 2031 |
Pelopidas |
176,000 |
2011 |
China |
$38,000 |
January 2012 |
January 2022 |
Lake Despina5 |
181,400 |
2014 |
Japan |
$24,376 |
January 2014 |
January 2024 |
Total dwt of existing fleet |
3,862,000 |
|
1. Quoted charter rates are the recognized
daily gross charter rates. 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 the case of a charter agreement that provides for
additional payments, namely ballast bonus to compensate for vessel
repositioning, the daily gross charter rate presented has been
adjusted to reflect estimated vessel repositioning expenses. Gross
charter rates are inclusive of commissions which reflect payments
made to third-party brokers or our charterers. In the 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.2. The start
dates listed reflect either the actual start dates or, in the case
of contracted charters that had not commenced as of May 29,
2020, the scheduled start dates. Actual start dates and redelivery
dates 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.3. MV Pedhoulas Farmer and MV Pedhoulas Rose
were sold and leased back, in 2015 and 2017, respectively, 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 favour of the Company after the second year of the
bareboat charter, at annual intervals and predetermined purchase
prices.4. Charterer agreed to reimburse us for a fixed amount
for part of the cost of the scrubber and BWTS to be installed on
the vessel, which is recorded by increasing the recognised daily
charter rate by $634 over the remaining tenor of the time charter
party.5. A period time charter of 10 years at a daily gross
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 an option to extend the period time charter for an
additional twelve months at a time at a daily gross charter rate of
$26,330, less 1.25% total commissions, which option may be
exercised by the charterer a maximum of two times.6. MV
Kypros Sky and MV Kypros Spirit were sold and leased back in
December 2019 on a bareboat charter basis for a period of eight
years, with purchase options in favor of the Company commencing
three years following the commencement of the bareboat charter
period and a purchase obligation at the end of the bareboat charter
period, all at predetermined purchase prices.7. MV
Panayiota K and MV Agios Spyridonas were sold and leased back in
January 2020 on a bareboat charter basis for a period of six years,
with purchase options in favor of the Company commencing three
years following the commencement of the bareboat charter period and
a purchase obligation at the end of the bareboat charter period,
all at predetermined purchase prices.8. MV Zoe, MV
Kypros Land, MV Venus Heritage and MV Venus History were sold and
leased back, in November 2019, on a bareboat charter rate, one for
a period of eight years and three for a period of seven and a half
years, with a purchase option in favor of the Company five years
and nine months following the commencement of the bareboat charter
period at a predetermined purchase price.9. Scrubber
benefit was agreed on the basis of fuel consumption of heavy fuel
oil and the price differential between the heavy fuel oil and the
compliant fuel cost for the voyage and is included on the daily
gross charter rate presented.10. Scrubber benefit was agreed on the
basis of fuel consumption of heavy fuel oil and the price
differential between the heavy fuel oil and the compliant fuel cost
for the voyage and is not included on the daily gross charter rate
presented.11. A period time charter of 5 years at a daily gross
charter rate of $11,750 for the first two years and a gross daily
charter rate linked to the BPI-82 5TC times 97% minus $2,150, for
the remaining period.12. A period time charter of 11 to 13 months
at a gross daily charter rate linked to the BPI-82 5TC times
109%.
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 C
preferred stock and series D preferred stock are listed on the
NYSE, and trade under the symbols “SB”, “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 1934, as amended, and in Section 21E of the Securities Act
of 1933, 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,
business disruptions due to natural disasters or other events, such
as the recent COVID-19 pandemic, 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
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25
887200E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail: safebulkers@capitallink.com
___________________________________________________1 Adjusted Net
(loss)/income is a non-GAAP measure. Adjusted Net (loss)/income
represents Net (loss)/income before gain/(loss) on derivatives,
early redelivery cost, loss on inventory valuation and gain/(loss)
on foreign currency. See Table 5.
2 EBITDA is a non-GAAP measure and represents Net
(loss)/income plus net interest expense, tax, depreciation and
amortization. See Table 5. Adjusted EBITDA is a non-GAAP measure
and represents EBITDA before gain/(loss) on derivatives, early
redelivery cost, loss on inventory valuation and, gain/(loss) on
foreign currency. See Table 5.
3 (Loss)/Earnings per share and Adjusted
(Loss)/Earnings per share represent Net (Loss)/income and Adjusted
Net (Loss)/income less preferred dividend and mezzanine equity
measurement divided by the weighted average number of shares
respectively. See Table 5.
4 Time charter equivalent rate, or TCE rate,
represents charter revenues less commissions and voyage expenses
divided by the number of available days. See Table 6.
5 Daily vessel operating expenses are calculated by
dividing vessel operating expenses for the relevant period by
ownership days for such period. See Table 6.
6 Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses are calculated by dividing
vessel operating expenses excluding dry-docking and
pre-deliveryexpenses for the relevant period by ownership days for
such period. See Table 6.
7 Daily general and administrative expenses are
calculated by dividing general and administrative expenses for the
relevant period by ownership days for such period. See Table 6.
8 Total Cash represents Cash and cash equivalents
plus Time deposits and Restricted cash.
9 Liquidity represents Total Cash plus contracted
undrawn borrowing capacity under revolving credit facilities and
secured commitments.
10 Total Debt represents Long-term debt plus
Current portion of long-term debt, net of deferred financing
costs.
11 Time charter equivalent rate, or TCE rate,
represents charter revenues less commissions and voyage expenses
divided by the number of available days. See Table 6
12 Consolidated leverage is a non-GAAP measure and
represents total consolidated liabilities divided by total
consolidated assets. Total consolidated assets are based on the
market value of all vessels (before scrubber installation), owned
or leased on a finance lease taking into account their employment,
and the book value of all other assets. This measure assists our
management and investors by increasing the comparability of our
leverage from period to period.
13 London interbank offered rate.
14 See Table 6.
15 Safety Management Overseas S.A. and Safe Bulkers
Management Limited, each of which is a related party that is
referred to in this press release as “our Manager” and collectively
“our Managers’’.
Grafico Azioni Safe Bulkers (NYSE:SB)
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