Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2014 Results and Declares Quarterly Dividend on Common Stock
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 11/05/14 -- Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three- and nine- month period ended September 30, 2014. The Board of Directors of the Company also declared a quarterly dividend of $0.04 per share of the common stock for the third quarter of 2014.
Net revenues for the third quarter of 2014 decreased by 13% to $36.5 million from $41.9 million during the same period in 2013.
Net income for the third quarter of 2014 decreased by 87% to $1.5 million from $11.6 million, during the same period in 2013. Adjusted net income(1) for the third quarter of 2014 decreased by 92% to $1.0 million from $13.1 million, during the same period in 2013.
EBITDA(2) for the third quarter of 2014 decreased by 38% to $14.4 million from $23.4 million during the same period in 2013. Adjusted EBITDA(3) for the third quarter of 2014 decreased by 44% to $13.9 million from $24.8 million during the same period in 2013.
Loss per share(4) and Adjusted loss per share(4) for the third quarter of 2014 of $0.02 and $0.03 respectively, calculated on a weighted average number of 83,448,120 shares, compared to Earnings per share(4) and Adjusted earnings per share(4) of $0.14 and $0.16 respectively, in the third quarter 2013, calculated on a weighted average number of 76,684,316 shares.
The Board of Directors of Company declared a dividend of $0.04 per share for the third quarter of 2014.
Net revenues for the first nine months of 2014 decreased by 10% to $115.0 million from $127.5 million during the same period in 2013.
Net income for the first nine months of 2014 decreased by 72% to $14.8 million from $52.2 million. Adjusted net income for the first nine months of 2014 decreased by 71% to $12.8 million from $44.1 million, during the same period in 2013.
EBITDA for the first nine months of 2014 decreased by 39% to $53.3 million from $87.0 million during the same period in 2013. Adjusted EBITDA for the first nine months of 2014 decreased by 35% to $51.3 million from $78.9 million during the same period in 2013.
Earnings per share and Adjusted earnings per share for the first nine months of 2014 of $0.11 and $0.08, respectively, calculated on a weighted average number of shares of 83,444,566, compared to $0.67 and $0.56 in the first nine months of 2013, calculated on a weighted average number of shares of 76,679,082.
In September 2014, the Company took delivery of the Kypros Unity (Hull No. 821), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.
As of November 3, 2014, the Company's operational fleet comprised of 32 drybulk vessels with an average age of 5.7 years and an aggregate carrying capacity of 2.9 million dwt. The fleet consists of 11 Panamax class vessels, 7 Kamsarmax class vessels, 11 Post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. As of November 3, 2014, the Company had contracted to acquire 12 new eco-design newbuild vessels, comprised of 5 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 2 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be new eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt and average age of 6.1 years.
Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of November 3, 2014:
Set out below is a table showing the Company's newbuild vessels and their contracted employment as of November 3, 2014:
The contracted employment of fleet ownership days as of November 3, 2014 was:
As of September 30, 2014, the Company had agreed to acquire 12 newbuild vessels, with 6 to be delivered in 2015; 5 to be delivered in 2016; and 1 to be delivered in 2017. The remaining capital expenditure requirements to shipyards or sellers for the delivery of these 12 newbuilds amounted to $325.6 million, of which $11.9 million was scheduled to be paid in the last three months of 2014, $162.1 million in 2015, $130.7 million in 2016 and $20.9 million in 2017.
As of September 30, 2014, the Company had liquidity of $523.0 million consisting of $77.0 million in cash and short-term time deposits, $2.7 million in long-term restricted cash, a $50.0 million floating rate note which matured in October 2014, $103.3 million available under existing revolving credit facilities and $290.0 million under committed loan facilities for four existing and eleven newbuild vessels. Additionally, the Company had one unencumbered newbuild vessel on order against which additional financing could be raised upon its delivery.
The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.04 per share payable on or about December 5, 2014 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on November 21, 2014.
The Company has 83,450,266 shares of common stock issued and outstanding as of today's date.
The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. 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 financial conditions. Accordingly, dividends might be reduced or not be paid in the future.
Dr. Loukas Barmparis, President of the Company, said: "We have experienced substantially weak charter market conditions, which are creating aversion for newbuild orders; a part of equation for a sustainable market recovery. In this volatile environment our company maintains strong liquidity and lean operations resulting to a low break-even point, while our capital expenditure requirements are fully funded."
On Thursday, November 6, 2014 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). to the operator.
A telephonic replay of the conference call will be available until November 13, 2014 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Net income decreased by 87% to $1.5 million for the third quarter of 2014 from $11.6 million for the third quarter of 2013, mainly due to the following factors:
Net revenues: Net revenues decreased by 13% to $36.5 million for the third quarter of 2014, compared to $41.9 million for the same period in 2013, mainly due to a decrease in charter rates. The Company operated 31.05 vessels on average during the third quarter of 2014, earning a TCE(5) rate of $10,736, compared to 27.43 vessels and a TCE rate of $15,264 during the same period in 2013.
Voyage expenses: Voyage expenses increased by 79% to $6.1 million for the third quarter of 2014 compared to $3.4 million for the same period in 2013, mainly due to an increase in the vessels' repositioning expenses.
Vessel operating expenses: Vessel operating expenses increased by 21% to $13.0 million for the third quarter of 2014, compared to $10.7 million for the same period in 2013. The increase in operating expenses is mainly attributable to an increase in ownership days by 13% to 2,857 days for the third quarter of 2014 from 2,524 days for the same period in 2013 and due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.
Depreciation: Depreciation increased to $10.9 million for the third quarter of 2014, compared to $9.6 million for the same period in 2013, as a result of the increase in the average number of vessels operated by the Company during the third quarter of 2014.
Interest expense: Interest expense decreased to $2.0 million, or by 5%, in the second quarter of 2014 from $2.1 million for the same period in 2013, as a result of the decrease in the average outstanding amount of loans and credit facilities and in the weighted average interest rate of such loans and credit facilities.
Gain/(loss) on derivatives: Gain on derivatives amounted to $0.5 million in the third quarter of 2014, compared to a loss of $1.5 million for the same period in 2013, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that are employed to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.1 years as of September 30, 2014. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
Daily vessel operating expenses(6): Daily vessel operating expenses increased by 7% at $4,542 for the third quarter of 2014 compared to $4,249 for the same period in 2013, mainly due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.
Daily general and administrative expenses(6): Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs incurred in relation to our operation as a public company, increased by 10% to $1,179 for the third quarter of 2014, compared to $1,071 for the same period in 2013. The increase is mainly attributable to the increase of the daily flat management fee from $700 per day to $800 per day, effective from May 29, 2014.
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share are not recognized measurements under US GAAP.
Adjusted Net Income represents net income before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively.
Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.
EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects from gain/(loss) on asset purchase cancellation, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net Income, 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.
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, series C and series D preferred stock are listed on the NYSE, where they trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D" respectively. The Company's current fleet consists of 32 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire 12 additional drybulk newbuild vessels to be delivered at various dates through 2017.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel.: +30 2 111 888 400
Fax: +30 2 111 878 500
E-Mail:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, N.Y. 10169
Tel.: (212) 661-7566
Fax: (212) 661-7526
E-Mail:
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Datum: 05.11.2014 - 21:02 Uhr
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News-ID 350070
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