Safe Bulkers, Inc. Reports Second Quarter and First Half 2011 Results and Declares Quarterly Dividend
(firmenpresse) - ATHENS, GREECE -- (Marketwire) -- 07/21/11 -- 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 six months periods ended June 30, 2011. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the second quarter of 2011.
Net revenue for the second quarter of 2011 increased by 1% to $41.2 million from $40.6 million during the same period in 2010.
Net income for the second quarter of 2011 decreased by 22% to $19.1 million from $24.4 million during the same period in 2010. Adjusted net income(1) for the second quarter of 2011 decreased by 7% to $25.5 million from $27.4 million during the same period in 2010.
EBITDA(2) for the second quarter of 2011 decreased by 14% to $25.5 million from $29.8 million during the same period in 2010. Adjusted EBITDA(1) for the second quarter of 2011 decreased by 3% to $31.9 million from $32.9 million during the same period in 2010.
Earnings per share ("EPS") for the second quarter of 2011 of $0.27, calculated based on a weighted average number of shares of 70,116,022, compared to $0.37 in the second quarter of 2010, calculated based on a weighted average number of shares of 65,870,573. Adjusted EPS(1) for the second quarter of 2011 of $0.36, calculated based on a weighted average number of shares of 70,116,022, compared to $0.42 in the second quarter of 2010, calculated based on a weighted average number of shares of 65,870,573.
The Company's Board of Directors declared a dividend of $0.15 per share for the second quarter of 2011.
Net revenue for the first half of 2011 increased by 11% to $83.5 million from $74.9 million during the same period in 2010.
Net income for the first half of 2011 decreased by 18% to $46.4 million from $56.5 million during the same period in 2010. Adjusted net income for the first half of 2011 increased by 6% to $52.9 million from $50.1 million during the same period in 2010.
EBITDA for the first half of 2011 decreased by 10% to $59.9 million from $66.9 million during the same period in 2010. Adjusted EBITDA for the first half of 2011 increased by 10% to $66.4 million from $60.5 million during the same period in 2010.
EPS for the first half of 2011 of $0.68, calculated based on a weighted average number of shares of 68,010,508, compared to $0.93 in the first half of 2010, calculated based on a weighted average number of shares of 60,681,831. Adjusted EPS for the first half of 2011 of $0.78, calculated based on a weighted average number of shares of 68,010,508, compared to $0.83 in the first half of 2010, calculated based on a weighted average number of shares of 60,681,831.
(1) Please see "Reconciliation of Adjusted Net Income, EPS and EBITDA" on page 9.
(2) EBITDA represents net income plus interest expense, tax, depreciation and amortization. Please see "Reconciliation of Adjusted Net Income, EPS and EBITDA" on page 9.
The Company's operational fleet was comprised of 16 drybulk vessels with an average age of 4.4 years.
The Company has contracted to acquire 11 additional drybulk newbuild vessels with deliveries scheduled at various times through 2014. The newbuild vessels consist of four Panamax, three Kamsarmax, two Post-Panamax and two Capesize vessels.
The contracted employment of fleet ownership days for the remainder of 2011 was 77%. For the full years 2011, 2012 and 2013 the contracted employment of fleet ownership days was 89%, 59% and 53% respectively. Contracted employment includes vessels which are scheduled to be delivered to us in the future.
The remaining capital expenditure requirements net of commissions for the delivery of our 11 newbuilds amounted to $304.5 million, of which $140.3 million is scheduled to be paid in 2011, $83.9 million in 2012, $34.2 million in 2013 and $46.1 million in 2014. We anticipate satisfying these capital expenditure requirements from existing cash and time deposits, operating cash surplus and existing undrawn loan facilities.
The Company had $25.9 million in cash and short-term time deposits, $5.4 million in long-term restricted cash and $50.0 million in a long-term floating rate note, from which it may borrow up to 80% under certain conditions.
The Company had $199.2 million in undrawn loan and credit facilities, for two existing and three newbuild vessels and $55.1 million available under existing revolving reducing credit facilities. Apart from the above contracted loan and credit facilities, the Company remains with eight debt-free newbuilds, on which additional financing may be contracted as and if required.
On April 15, 2011 the Company completed an underwritten public equity offering of 5,000,000 shares of common stock priced at $8.40 per share to the public. The net proceeds from the offering after deducting the underwriting discount and offering expenses were $39.6 million.
The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.15 per share payable on or about August 31, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on August 24, 2011. The Company has 70,887,221 shares of common stock issued and outstanding as of today.
Dr. Loukas Barmparis, President of the Company, said: "Our Board of Directors has declared our thirteenth consecutive dividend since our IPO. Our financial position is supported by our contracted revenue, low pay-out ratio and fleet expansion. Our recently completed equity offering further strengthens our balance sheet, while our additional contracted loans and credit facilities are expected to expand our financial flexibility. We have an ongoing newbuilding program and we may pursue further attractive vessel acquisition opportunities to expand and renew our fleet with higher efficiency vessels as new designs are introduced. We are committed to develop our Company through flexible asset and financial management and consistent chartering policy."
On Friday, July 22, 2011 at 9:00 A.M. EDT, 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 July 29, 2011 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 22% to $19.1 million for the second quarter of 2011 from $24.4 million for the second quarter of 2010, mainly due to the following factors:
Net revenues: Net revenues increased by 1% to $41.2 million for the second quarter of 2011 compared to $40.6 million for the same period in 2010, as a net effect of the increased number of operating days and the decreased time charter equivalent rate(3) ("TCE rate"). The Company operated 16 vessels on average during the second quarter of 2011, earning a TCE rate of $27,921, compared to 14.9 vessels and a TCE rate of $29,706 during the same period in 2010.
Vessel operating expenses: Vessel operating expenses increased by 10% to $6.5 million for the second quarter of 2011 compared to $5.9 million for the same period in 2010. The increase in operating expenses is mainly attributable to an increase in ownership days by 7% to 1,456 days for the second quarter of 2011 from 1,359 days for the same period in 2010. Daily vessel operating expenses increased by 3% to $4,479 for the second quarter of 2011 compared to $4,362 for the same period in 2010, mainly due to the performance of one dry docking during the second quarter of 2011 compared to none during the same period of 2010.
Depreciation: Depreciation increased by 10% to $5.6 million for the second quarter of 2011 compared to $5.1 million for the same period in 2010 as a result of the increase in the average number of vessels operated by the Company during the second quarter of 2011.
Early redelivery income: During the second quarter of 2010, we recorded $1.8 million of early redelivery income, compared to zero for the same period in 2011. Early redelivery income recorded in the second quarter of 2010 was related to the early termination agreements for the period time charters of our vessels Pedhoulas Merchant and Pedhoulas Leader.
Interest income: Interest income decreased to $0.2 million in the second quarter of 2011 from $1.3 million for the same period in 2010, attributable to lower average cash held and lower interest rates earned in the respective periods.
Loss on derivatives: Loss on derivatives increased by 25% to $6.1 million in the second quarter of 2011 compared to a loss of $4.9 million for the same period in 2010, 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 and increased swap notional amounts. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.7 years as of June 30, 2011. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
(3) Time charter equivalent rates, or TCE rates, represent our charter revenues less commissions and voyage expenses during a period divided by the number of our available days during such period.
EBITDA represents net income before interest, income tax expense, depreciation and amortization. The Company's management uses EBITDA as a performance measure. The Company believes that EBITDA is useful to investors because the shipping industry is capital intensive and may involve significant financing costs and EBITDA assists in the comparability of the Company's fundamental performance from period to period. The Company's definition of EBITDA may not be the same as that used by other companies in the shipping or other industries. The Company excluded gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency to derive adjusted net income, adjusted EPS and the adjusted EBITDA because the Company believes that these adjustments provide additional information on the fleet operational results.
Adjusted net income, Adjusted earnings per share, EBITDA and Adjusted EBITDA are not items recognized by GAAP and should not be considered as alternatives to Net income, earnings per share, operating income, or any other indicator of a Company's operating performance required by GAAP.
Set out below is a table showing our existing vessels and their contracted employment.
The contracted charter coverage including newbuilds, based on the Company's best estimates as of July 20, 2011 is as follows:
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 is listed on the NYSE, where it trades under the symbol "SB". The Company's current fleet consists of 16 drybulk vessels, all built post-2003, and the Company has contracted to acquire 11 additional drybulk newbuild vessels to be delivered at various times through 2014.
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 (210) 899-4980
Fax: +30 (210) 895-4159
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: 21.07.2011 - 20:05 Uhr
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News-ID 36885
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