Safe Bulkers, Inc. Reports Third Quarter and Nine Months 2017 Results

MONACO–(Marketwired – Oct 31, 2017) – 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 months period ended September 30, 2017.
Summary of Third Quarter 2017 Results

Net revenue for the third quarter of 2017 increased by 38% to $37.3 million from $27.1 million during the same period in 2016.

Net income for the third quarter of 2017 was $6.7 million as compared to net loss of $24.5 million, during the same period in 2016. Adjusted net loss1 for the third quarter of 2017 was $1.8 million as compared to $9.0 million, during the same period in 2016.

EBITDA2 for the third quarter of 2017 amounted to earnings of $27.4 million as compared to a loss of $6.2 million during the same period in 2016. Adjusted EBITDA3 for the third quarter of 2017 increased by 103% to $18.9 million from $9.3 million during the same period in 2016.

Earnings per share4 and Adjusted loss per share4 for the third quarter of 2017 were $0.04 and $0.05 respectively, calculated on a weighted average number of 101,521,234 shares, as compared to a Loss per share of $0.34 and Adjusted loss per share of $0.15 during the same period in 2016, calculated on a weighted average number of 83,601,283 shares.

Summary of Nine Months Ended September 30, 2017 Results

Net revenues for the nine months of 2017 increased by 35% to $105.7 million from $78.1 million during the same period in 2016.

Net income for the nine months of 2017 was $1.9 million as compared to a net loss of $51.3 million, during the same period in 2016. Adjusted net loss for the nine months of 2017 was $7.1 million as compared to $32.0 million, during the same period in 2016.

EBITDA for the nine months of 2017 increased to $59.8 million as compared to $2.5 million during the same period in 2016. Adjusted EBITDA for the nine months of 2017 increased by 133% to $50.8 million as compared to $21.8 million during the same period in 2016.

Loss per share4 and Adjusted loss per share for the nine months of 2017 were $0.10 and $0.19, respectively, calculated on a weighted average number of shares of 100,731,192, as compared to loss per share of $0.74 and Adjusted loss per share of $0.51 during the same period in 2016, calculated on a weighted average number of shares of 83,573,418.

1 Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, gain/(loss) on derivatives, gain on loan write off, early redelivery cost, other operating income, impairment 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, gain on debt extinguishment, other operating income, early redelivery cost, impairment loss and gain/(loss) on foreign currency. See Table 1.
4 Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net Income/(loss) and Adjusted Net income/(loss) less preferred dividend and deemed dividend divided by the weighted average number of shares respectively. See Table 1.
Fleet and Employment Profile
As of October 25, 2017, our operational fleet comprised of 38 drybulk vessels with an average age of 7.3 years and an aggregate carrying capacity of 3.4 million dwt. Our 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. Taking into account our last contracted drybulk newbuild Kamsarmax class vessel, scheduled for delivery in 2018, our fleet will comprise of 39 vessels, 11 of which will be eco-design vessels, with an aggregate carrying capacity of 3.5 million dwt, assuming no additional vessel acquisitions or disposals.
Set out below is a table showing the Company’s existing and newbuild vessels and their contracted employment as of October 25, 2017:

Vessel Name
DWT
Year Built
Country of construction
 
Gross Charter Rate [USD/day]
Charter Duration1

 Panamax

 Maria
76,000
2003
Japan
 
6,500
Aug 2016 – Feb 2018

 Koulitsa
76,900
2003
Japan
 
7,500
9,000
Jan 2017 – Jan 2018
Jan 2018 – Apr 2019

 Paraskevi
74,300
2003
Japan
 
7,400
Apr 2017 – Jun 2018

 Vassos
76,000
2004
Japan
 
7,500
Jan 2017 – Nov 2017

 Katerina
76,000
2004
Japan  
7,500
Apr 2017 – Jun 2018

 Maritsa
76,000
2005
Japan
 
10,100
Sep 2017 – Sep 2018

 Efrossini
75,000
2012
Japan
 
12,000
Aug 2017 – Nov 2017

 Zoe
75,000
2013
Japan
 
6,200
8,200
Aug 2016 – Nov 2017
Nov 2017 – Feb 2019

 Kypros Land
77,100
2014
Japan
 
12,300
Jul 2017 – Oct 2017

 Kypros Sea
77,100
2014
Japan
 
11,250
Jul 2017 – May 2018

 Kypros Bravery
78,000
2015
Japan
 
7,500
Sep 2016 – May 2018

 Kypros Sky
77,100
2015
Japan
 
9,100
Dec 2016 – Feb 2018

 Kypros Loyalty
78,000
2015
Japan
 
12,500
Sep 2017 – Nov 2017

 Kypros Spirit
78,000
2016
Japan
 
15,000
Oct 2017 – Nov 2017

Kamsarmax

 Pedhoulas Merchant
82,300
2006
Japan
  13,850
Sep 2017 – Feb 2018

 Pedhoulas Trader
82,300
2006
Japan
 
11,600
Sep 2017 – Aug 2018

 Pedhoulas Leader
82,300
2007
Japan
 
14,000
Oct 2017- Dec 2017

 Pedhoulas Commander
83,700
2008
Japan
 
10,150
June 2017 – May 2018

 Pedhoulas Builder
81,600
2012
China
 
8,400 3
Apr 2017 – Jun 2018

 Pedhoulas Fighter
81,600
2012
China
 
8,475
Jun 2017 – Jan 2018

 Pedhoulas Farmer2
81,600
2012
China
 
10,675
Mar 2017 – Dec 2017

 Pedhoulas Cherry 2
82,000
2015
China
 
6,600
Apr 2017 – Oct 2018

 Pedhoulas Rose2
82,000
2017
China
 
8,500
10,000
Jan 2017 – Mar 2018
Mar 2018 – May 2019

Post-Panamax

 Marina
87,000
2006
Japan
 
10,600
Jul 2017 – May 2018

 Xenia
87,000
2006
Japan
  10,000 4
Feb 2017 – Jun 2018

 Sophia
87,000
2007
Japan
 
7,250
Apr 2016 – Nov 2018

 Eleni
87,000
2008
Japan
 
15,250
Oct 2017 – Nov 2017

 Martine
87,000
2009
Japan
 
11,500
Aug 2017 – Feb 2018

 Andreas K
92,000
2009
South Korea
 
12,500
Oct 2017 – Nov 2017

 Panayiota K
92,000
2010
South Korea
 
13,500
Oct 2017 – Dec 2017

 Venus Heritage
95,800
2010
Japan
 
8,600
13,200
Feb 2017 – Nov 2017
Nov 2017 – Mar 2019

 Venus History
95,800
2011
Japan
 
8,850
Feb 2017 – Nov 2017

 Venus Horizon
95,800
2012
Japan
 
9,250
Jun 2017 – Jan 2018

 Troodos Sun
85,000
2016
Japan
 
14,750
Sep 2017 – Dec 2017

 Troodos Air
85,000
2016
Japan
 
11,350 5
Mar 2017 – Jul 2018

Capesize

 Kanaris
178,100
2010
China
 
25,928
Sep 2011 – Jun 2031

 Pelopidas
176,000
2011
China
 
38,000
Feb 2012 – Dec 2021

 Lake Despina
181,400
2014
Japan
 
24,376 6
Jan 2014 – Jan 2024

 Total dwt of existing fleet
3,421,800
 

Hull Number
DWT
Expected delivery
Country of construction
 
Gross Charter Rate  [USD/day]
Charter Duration1

 Kamsarmax
 
 
 
 
 
 

 Hull 1552
81,600
H1 2018
Japan
 
 
 

 Total dwt of orderbook
81,600
 
 
 
 
 

The start date represents either the actual start date or, in the case of a contracted charter that had not commenced as of October 25, 2017, the scheduled start date. The actual start date and redelivery date may differ from the referenced scheduled start and redelivery dates depending on the terms of the charter and market conditions and does not reflect the options to extend the period time charter.

Vessel sold and leased back on a net daily bareboat charter rate of $6,500 for a period of 10 years, with a purchase obligation at the end of the 10th year and purchase options in favor of the Company after the second year of the bareboat charter, at annual intervals and predetermined purchase prices.

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.

The charter agreement grants the charterer the option to extend the period time charter for an additional 12 to 16 months period at a gross daily charter rate of $12,500.

The charter agreement grants the charterer the option to extend the period time charter for an additional 12 to 16 months period at a gross daily charter rate of $12,500.

A period time charter of ten years at a gross daily charter rate of $23,100 for the first two and a half years and of $24,810 for the remaining period. In January 2017, the period time charter was amended to reflect substitution of the initial charterer with its subsidiary guaranteed by the initial charterer and changes in payment terms; all other charter terms remained unchanged. The charter agreement grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the charter, at a price of $39 million less a 1.00% commission, decreasing thereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel and subsequently offers to sell such vessel to a third party. The charter agreement also grants the charterer the option to extend the period time charter for an additional twelve months at a time at a gross daily charter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times.

The contracted employment of fleet ownership days as of October 25, 2017 was:

 
 

2017 (remaining)
84%

2017 (full year)
97%

2018
37%

2019
10%

 
 

Order book, capital expenditure requirements and liquidity as of October 25, 2017
The remaining order book consisted of one newbuild vessel; our wholly-owned subsidiary Pinewood Shipping Corporation has contracted to acquire Hull No. 1552 with scheduled delivery date in 2018 and has agreed to issue $16.9 million of preferred equity to an unaffiliated investor upon delivery.
The remaining capital expenditure requirements amounted to $27.8 million consisting of $0.5 million payable in 2017 and $27.3 million payable in 2018.
We had liquidity of $80.2 million, consisting of $69.9 million in cash and bank time deposits and $10.3 million in restricted cash.
In addition we have secured $16.9 million of preferred equity financing for Hull 1552 and have the capacity to borrow against one unencumbered vessel.
Update on the sale and leaseback transactions
In June 2017, we exercised options under the sale and leaseback agreements to purchase two Kamsarmax class vessels at an aggregate predetermined price of $43.8 million, terminating the relevant bareboat charters representing an annualized cash outflow of $4.7 million. The transaction consummated in September 2017 and the Company financed the acquisition of the vessels through cash on hand and new credit facilities.
The sale and leaseback transaction had been accounted as a financing transaction. The outstanding obligation of these two vessels amounted to $41.8 million as of the transaction date. Deferred finance costs of $1.4 million were written off upon the consummation of the transaction.
Refinancing of loan facilities
In September 2017, we successfully concluded the settlement of $74.9 million loans outstanding at a discount, with a new loan facility of $49.6 million and cash on hand of US$17.1 million, resulting in a net gain on debt extinguishment of $8.2 million.
Dividend Policy
The Board of Directors of the Company has not declared a dividend to its common stock holders for the third quarter of 2017. The Company had 101,526,708 shares of common stock issued and outstanding as of October 25, 2017.
The Company declared in October a cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.B), on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C) and on its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D) for the period from July 30, 2017 to October 29, 2017 payable on October 30, 2017 to the respective shareholders of record as of October 23, 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 and leverage strategies; (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends; (iv) restrictive covenants in the Company’s existing and future debt instruments; and (v) global economic and financial conditions.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: “Highlights of the third quarter include, improvement of our capital structure towards reducing finance costs and our break-even point, continuous reduction of adjusted losses per share in an improving charter market and for the first time after several quarters, earnings per share on unadjusted basis, taking into account the write off of $8.2 million of debt.” 
Conference Call
On November 1, 2017 at 8:30 A.M. Eastern Time, the Company’s management team will host a conference call to discuss the Company’s financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote “Safe Bulkers” to the operator.
A telephonic replay of the conference call will be available until November 10, 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 (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 Third Quarter 2017 Results
Net income for the third quarter of 2017 was $6.7 million compared to net loss of $24.5 million during the same period in 2016, mainly due to the following factors:
Net revenues: Net revenues increased by 38% to $37.3 million for the third quarter of 2017, compared to $27.1 million for the same period in 2016, mainly due to an increase in charter rates and to a lesser extent an increase in the average number of vessels. The Company operated 38.00 vessels on average during the third quarter of 2017, earning a TCE6 rate of $10,419, compared to 36.97 vessels and a TCE rate of $7,637 during the same period in 2016.
Vessel operating expenses: Vessel operating expenses, which include dry-docking cost and initial supplies expenses, increased by 9% to $13.4 million for the third quarter of 2017, compared to $12.3 million for the same period in 2016, as a result of the average number of vessels increasing by 3% to 38.00 vessels, from 36.97 vessels respectively and increased maintenance and spare parts costs partly offset by no dry-docking costs incurred for the third quarter of 2017, compared to one during the third quarter of 2016. 
Gain on debt extinguishment: In September 2017, the Company entered into a discount settlement agreement with the lenders to prepay and settle loans amounting to $74.9 million at a discount which resulted in a net gain of $8.2 million. The settlement was funded from a new loan facility of $49.6 million and cash on hand of US$17.1 million.
Interest expenses: Interest expense increased to $6.1 million in the third quarter of 2017, compared to $4.8 million for the same period in 2016, as a result of the increase in the weighted average loan outstanding and the increase in the weighted average interest rate of our loans and credit facilities.
Daily vessel operating expenses5: Daily vessel operating expenses, which are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period, increased by 6% to $3,830 for the third quarter of 2017 compared to $3,617 for the same period in 2016, due to increased maintenance and spare parts costs.
Daily general and administrative expenses5: Daily general and administrative expenses, which include management fees payable to our Managers7 decreased by 3% to $1,163 for the third quarter of 2017, compared to $1,196 for the same period in 2016.
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 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”.

 
 

Unaudited Interim Financial Information and Other Data
 

 
 

SAFE BULKERS, INC.
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 

(In thousands of U.S. Dollars except for share and per share data)
 

 
 

 
Three-Months Period Ended September 30,
 
 
Nine-Months Period Ended September 30,
 

 
2016
 
 
2017
 
 
2016
 
 
2017
 

REVENUES:
 
 
 
 
 
 
 
 
 
 
 

 
Revenues
28,198
 
 
38,845
 
 
81,015
 
 
109,939
 

 
Commissions
(1,076
)
 
(1,528
)
 
(2,953
)
 
(4,285
)

 
Net revenues
27,122
 
 
37,317
 
 
78,062
 
 
105,654
 

EXPENSES:
 
 
 
 
 
 
 
 
 
 
 

 
Voyage expenses
(1,218
)
 
(893
)
 
(6,189
)
 
(3,359
)

 
Vessel operating expenses
(12,303
)
 
(13,391
)
 
(36,886
)
 
(39,095
)

 
Depreciation
(12,673
)
 
(12,972
)
 
(36,799
)
 
(38,443
)

 
General and administrative expenses
(4,066
)
 
(4,067
)
 
(11,694
)  
(12,004
)

 
Early redelivery cost
-
 
 
(182
)
 
-
 
 
(267
)

 
Other operating income/(expense)
1,158
 
 
-
 
 
1,158
 
 
(390
)

 
Loss on sale of assets
-
 
 
-
 
 
(2,750
)
 
(120
)

 
Impairment loss
(17,163
)
 
-
 
 
(17,163
)
 
-
 

 
Operating (loss)/income
(19,143
)
 
5,812
 
 
(32,261
)
 
11,976
 

OTHER (EXPENSE) / INCOME:
 
 
 
 
 
 
 
 
 
 
 

 
Interest expense
(4,780
)
 
(6,072
)
 
(14,465
)
 
(17,666
)

 
Other finance costs
(222
)
 
(90
)
 
(1,469
)
 
(435
)

 
Gain on debt extinguishment
-
 
 
8,189
 
 
-
 
 
8,189
 

 
Interest income
97
 
 
213
 
 
385
 
 
606
 

 
Gain/(loss) on derivatives
357
   
(4
)
 
(871
)
 
51
 

 
Foreign currency gain
110
 
 
561
 
 
300
 
 
1,545
 

 
Amortization and write-off of deferred finance charges
(937
)
 
(1,878
)
 
(2,948
)
 
(2,385
)

 
Net (loss)/income
(24,518
)
 
6,731
 
 
(51,329
)
 
1,881
 

 
Less Preferred dividend
3,502
 
 
2,940
 
 
10,530
 
 
9,375
 

 
Less Preferred deemed dividend
-
 
 
-
 
 
-
 
 
2,146
 

Net (loss)/income available to common shareholders
(28,020
)
 
3,791
 
 
(61,859
)
 
(9,640
)

 
(Loss)/Earnings per share basic and diluted
(0.34
)
 
0.04
 
 
(0.74
)
 
(0.10
)

Weighted average number of shares
83,601,283
 
 
101,521,234
 
 
83,573,418
 
 
100,731,192
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
   
 
 
 

 
Nine Months Period Ended
September 30,
 

 
2016
 
 
2017
 

 
(In million of U.S. Dollars)
 
 
 
 
 

 
CASH FLOW DATA
 
 
 
 
 
 
 

 
Net cash provided by operating activities
$
6.8
 
 
$
35.4
 

 
Net cash provided by /(used in) investing activities
 
15.2
 
 
 
(19.0)
 

 
Net cash used in financing activities
 
(93.7
)
 
 
(42.0
)

 
Net decrease in cash and cash equivalents
 
(71.7
)
 
 
(25.6
)

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

SAFE BULKERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands of U.S. Dollars)

 

 
December 31, 2016
 
September 30, 2017

ASSETS
 
 
 

 
Cash, restricted cash and time deposits
94,813
 
67,823

 
Other current assets
16,195
 
15,872

 
Vessels, net
1,038,719
 
1,031,097

 
Advances for vessel acquisition and vessels under construction
13,007
 
3,585

 
Restricted cash non-current
10,002
 
7,401

 
Other non-current assets 1,017
 
811

 
Total assets
1,173,753
 
1,126,589

LIABILITIES AND EQUITY
 
 
 

 
Other current liabilities
11,603
 
11,732

 
Current portion of long-term debt, net
12,177
 
24,908

 
Long-term debt, net
569,781
 
544,104

 
Other non-current liabilities
1,656
 
-

 
Shareholders’ equity
578,536
 
545,845

 
Total liabilities and equity
1,173,753
 
1,126,589

 
 
 
 

 
 
 
 

 
 
 
 

TABLE 1
 

RECONCILIATION OF ADJUSTED NET LOSS, EBITDA, ADJUSTED EBITDA AND ADJUSTED LOSS PER SHARE
 

 
 

 
Three-Months
Period Ended September 30,
 
 
Nine-Months
Period Ended September 30,
 

(In thousands of U.S. Dollars except for share and per share data)
2016
 
 
2017
 
 
2016
 
 
2017
 

Net Loss – Adjusted Net Loss
 
 
 
 
 
 
 
 
 
 
 

Net (loss)/income
(24,518
)
 
6,731
 
 
(51,329
)
 
1,881
 

Plus Loss on sale of assets
-
 
 
-
 
 
2,750
 
 
120
 

Plus (Gain)/loss on derivatives
(357
)
 
4  
 
871
 
 
(51
)

Plus Early redelivery cost
-
 
 
182
 
 
-
 
 
267
 

Less Other operating (income)/expense
(1,158
)
 
-
 
 
(1,158
)
 
390
 

Plus Impairment loss
17,163
 
 
-
 
 
17,163
 
 
-
 

Less Gain on loan write off
-
 
 
(8,189
)
 
-
 
 
(8,189
)

Less Foreign currency gain
(110
)
 
(561
)
 
(300
)
 
(1,545
)

Adjusted Net loss
(8,980
)
 
(1,833
)
 
(32,003
)
 
(7,127
)

 
 
 
 
 
 
 
 
 
 
 
 

EBITDA – Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 

Net (loss)/income
(24,518
)
 
6,731
 
 
(51,329
)
 
1,881
 

Plus Net Interest expense
4,683
 
 
5,859
 
 
14,080
 
 
17,060
 

Plus Depreciation
12,673
   
12,972
 
 
36,799
 
 
38,443
 

Plus Amortization
937
 
 
1,878
 
 
2,948
 
 
2,385
 

EBITDA
(6,225
)
 
27,440
 
 
2,498
 
 
59,769
 

Plus Loss on sale of assets
-
 
 
-
 
 
2,750
 
 
120
 

Plus (Gain)/loss on derivatives
(357
)
 
4
 
 
871
 
 
(51
)

Plus Early redelivery cost
-
 
 
182
 
 
-
 
 
267
 

Less Other operating (income)/expense
(1,158
)
 
-
 
 
(1,158
)
 
390
 

Plus Impairment loss
17,163
 
 
-
 
 
17,163
 
 
-
 

Less Gain on loan write off
-
 
 
(8,189
)
 
-
 
 
(8,189
)

Less Foreign currency gain
(110
)
 
(561
)
 
(300
)
 
(1,545
)

ADJUSTED EBITDA
9,313
 
 
18,876
 
 
21,824
 
 
50,761
 

 
 
   
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

(Loss)/Earnings per share
 
 
 
 
 
 
 
 
 
 
 

Net (loss)/income
(24,518
)
 
6,731
 
 
(51,329
)
 
1,881
 

Less Preferred dividend
3,502
 
 
2,940
 
 
10,530
 
 
9,375
 

Less Preferred deemed dividend
-
 
 
-
 
 
-
 
 
2,146
 

Net (loss)/income available to common shareholders
(28,020
)
 
3,791
 
 
(61,859
)
 
(9,640
)

Weighted average number of shares
83,601,283
 
 
101,521,234
 
 
83,573,418
 
 
100,731,192
 

(Loss)/Earnings per share
(0.34
)
 
0.04
 
 
(0.74
)
 
(0.10
)

 
 
 
 
 
 
 
 
 
 
 
 

Adjusted Loss per share
 
 
 
 
 
 
 
 
 
 
 

Adjusted Net loss
(8,980
)
 
(1,833
)
 
(32,003
)
 
(7,127
)

Less Preferred dividend
3,502
 
 
2,940
 
 
10,530
 
 
9,375
 

Less Deemed dividend
-
 
 
-
 
 
-
 
 
2,146
 

Adjusted Net loss available to common shareholders
(12,482
)
 
(4,773
)
 
(42,533
)
 
(18,648
)

Weighted average number of shares
83,601,283
 
 
101,521,234
 
 
83,573,418
 
 
100,731,192
 

Adjusted Loss per share
(0.15
)
 
(0.05
)
 
(0.51
)
 
(0.19
)

EBITDA, Adjusted EBITDA, Adjusted Net loss and Adjusted loss per share are not recognized measurements under US GAAP.
– EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization.
– Adjusted EBITDA represents EBITDA before loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment, other operating income/(expense), early redelivery cost, impairment loss and gain/(loss) on foreign currency.
– Adjusted Net loss represents Net loss before loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment, other operating income/(expense), early redelivery cost, impairment loss and gain/(loss) on foreign currency.
– Adjusted Loss per share represents Adjusted Net loss less preferred dividend and preferred deemed dividend divided by the weighted average number of shares.
EBITDA, Adjusted EBITDA, Adjusted Net loss and Adjusted 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 loss and Adjusted loss per share are useful in evaluating the Company’s operating performance from period to period because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, the calculation of Adjusted EBITDA generally further eliminates the effects from loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment 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 loss generally eliminates the effects of loss on sale of assets, gain/(loss) on derivatives, gain on debt extinguishment and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted Earnings/(loss) per share have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under US GAAP. EBITDA, Adjusted EBITDA, Adjusted Net Loss should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA Adjusted Net income/(loss) and Adjusted Earnings/(loss) per share, are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. In evaluating Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted Earnings/(loss) per share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA, Adjusted Net Loss and Adjusted Loss per share should not be construed as an inference that our future results will be unaffected by the excluded items.

 

TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS

 

 
Three-Months
Period Ended
September 30,
 
Nine-Months
Period Ended
September 30,

 
2016
 
2017
 
2016
 
2017

 
 
 
 
 
 
 
 

FLEET DATA
 
 
 
 
 
 
 

Number of vessels at period end
37
 
38
 
37
 
38

Average age of fleet (in years)
6.43
 
7.25
 
6.43
 
7.25

Ownership days (1)
3,401
 
3,496
 
9,986
 
10,358

Available days (2)
3,392
 
3,496
 
9,947
 
10,288

Operating days (3)
3,329
 
3,478
 
9,703
 
10,181

Fleet utilization (4)
97.9%
 
99.5%
 
97.2%
 
98.3%

Average number of vessels in the period (5)
36.97
 
38.00
 
36.45
 
37.94

 
 
 
 
 
 
 
 

AVERAGE DAILY RESULTS
 
 
 
 
 
 
 

Time charter equivalent rate (6)
$7,637
 
$10,419
 
$7,226
 
$9,943

Daily vessel operating expenses (7)
$3,617
 
$3,830
 
$3,694
 
$3,774

Daily general and administrative expenses (8)
$1,196
 
$1,163
 
$1,171
 
$1,159

_____________

Ownership days represents the aggregate number of days in a period during which each vessel in our fleet has been owned by us.

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.

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.

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.

Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.

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.

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.
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.