-- The Company reported net income of $31.57 million for the second
quarter of 2008 compared to net income of $0.58 million for the second
quarter of 2007.
-- Voyage and time charter revenues were $ 59.23 million for the second
quarter of 2008. This figure includes revenues of $17.05 million
attributable to the amortization of the fair value of below/above market
acquired time charters.
-- Earnings per share, basic and diluted for the second quarter of 2008
were $0.62 and $0.56, respectively. These figures are based on a weighted
average of 50,963,213 shares outstanding, basic and on a weighted average
of 56,047,237 shares outstanding, diluted in the second quarter of 2008.
First Half 2008
-- The Company reported net income of $48.29 million for the first half
of 2008 compared to net income of $0.85 million for the first half of 2007.
-- Voyage and time charter revenues were $ 100.92 million for the first
half of 2008. This figure includes revenues of $34.92 million attributable
to the amortization of the fair value of below/above market acquired time
charters.
-- Earnings per share, basic and diluted for the six months ended June
30, 2008 were $1.01 and $0.91, respectively. These figures are based on a
weighted average of 47,855,865 shares outstanding, basic and on a weighted
average of 52,798,013 shares outstanding, diluted in the first half of
2008.
We commenced operations during the fourth quarter of 2007 (December 3,
2007). Included in this release are our Unaudited Interim consolidated
condensed financial statements which include comparisons between the first
half of 2008 and 2007. During the period from the Company's inception (May
13, 2005) to the date it commenced operations (December 3, 2007), the
Company was a development stage enterprise.
The Unaudited Interim consolidated condensed Income Statements, Balance
Sheets, and Cash Flow Statements presented herein, include the accounts of
Star Bulk Carriers Corp. and its wholly owned subsidiaries and of its
predecessor Star Maritime Acquisition Corp. ("Star Maritime").
Star Maritime was organized under the laws of the State of Delaware on
May 13, 2005 as a blank check company formed to acquire, through a merger,
capital stock exchange, asset acquisition or similar business combination,
one or more assets or target businesses in the shipping industry.
On November 27, 2007, Star Maritime obtained shareholder approval for the
acquisition of the initial fleet of eight drybulk carriers and for
effecting the Redomiciliation Merger whereby Star Maritime merged with and
into Star Bulk with Star Bulk as the surviving entity. The Redomiciliation
Merger was completed on November 30, 2007 as a result of which each
outstanding share of Star Maritime common stock was converted into the
right to receive one share of Star Bulk common stock and each outstanding
warrant of Star Maritime was assumed by Star Bulk with the same terms and
restrictions except that each became exercisable for common stock of Star
Bulk. Star Bulk's common stock and warrants are listed on the Nasdaq Global
Market under the symbols "SBLK" and "SBLKW" respectively.
First Quarter 2008 Results; Adjustment of Net Income and Earnings Per Share
for First Quarter 2008:
In connection with the acquisition of the vessels in the initial fleet, the
Company agreed to issue to TMT Co. Ltd. a total of 1,606,962 additional
shares of common stock in two equal tranches of 803,481 shares 10 days
after the filing of the Company's Form 20-F in 2008 and 2009 respectively.
The company intended to report the issuance of these shares in either the
second or third quarter 2008 whenever the issuance of the first tranche
would take place. The Company has now concluded that proper treatment US
GAAP, is to deem the additional shares as having been issued for reporting
purposes upon the completion of delivery of all vessels in the initial
fleet, which occurred in March 2008. Accordingly, the Company has restated
its first quarter earnings. Net income and earnings per share for the first
quarter of 2008 were reported as $17.8 million and $0.40 respectively.
Instead, net income for the first quarter is now adjusted from previously
reported $17.8 million to $16.7 million and earnings per share for the same
period are adjusted from previously reported $0.40 to $0.37 per share. The
resulting change to the first quarter of 2008 also includes an increase in
previously reported vessel cost and additional paid-in capital adjustment
of $18.9 million. No change in the Company's dividend policy will be made
as a result of this restatement.
Akis Tsirigakis, President and CEO of Star Bulk commented: "We are pleased
to report our third consecutive profitable quarter since we commenced
operations in December 2007. During the second quarter 2008 we acquired two
additional vessels, bringing our acquisition total to five vessels since we
completed the Redomiciliation Merger. Out of these five vessels we have
already taken delivery of four and expect to take delivery of the fifth
vessel in September 2008. Also, during the second quarter we agreed to sell
our oldest vessel, Star Iota, which once delivered will lower our average
age of our fleet to 8.9 years. Following the completion of this sale and
purchase activity we will have a fleet of twelve vessels with a cargo
capacity of over one million in dwt. Furthermore, our strong balance sheet
which is approximately 27% of our debt to fleet value provides us with the
ability to look for further fleet growth.
We also declared a dividend of $0.35 per share, our third consecutive
quarterly dividend since our inception. I would like to mention that our
time charter coverage protects our dividend payment from any market
volatility. The dividend represents approximately 57% of our expected 2008
free cash flow and I would also like to mention that we are not a full
payout company. As having one of the highest dividend yields in the sector
we believe it is important to focus on opportunities for further fleet
expansion thereby creating long term shareholder value."
Fleet Employment Profile (As of August 12, 2008)
Currently Star Bulk's fleet is employed as follows:
Time
Year Charter
Vessel Name Type DWT Built Time Charter Expiry (1) Rate (2)
---------------- -------- --------- ----- ----------------------- --------
CAPESIZE FLEET
Star Alpha Capesize 175,075 1992 Jul 5 - Oct 5, 2009 $ 47,500
Star Beta Capesize 174,691 1993 Feb 12 - May 2, 2010 $106,500
Mar 1 - Mar 31, 2009 $100,000
Star Sigma Capesize 184,400 1991 Mar 2010 $ 69,000
Mar 2011 $ 63,000
Mar - Aug 2012 $ 57,000
SUPRAMAX FLEET
Jan 4 - Feb 14, 2009 $ 28,500
Star Gamma Supramax 53,098 2002 Feb 2010 $ 45,000
Feb 2011 $ 38,000
Jan - Mar 2012 $ 31,000
Star Delta Supramax 52,434 2000 Feb 7 - May 7, 2009 $ 25,800
Dec 15, '08 -
Star Epsilon Supramax 52,402 2001 Mar 15, '09 $ 25,550
Feb 2014 - May 2014 $ 32,400
Star Zeta Supramax 52,994 2003 Apr 2011 - Jul 2011 $ 42,500
Star Theta Supramax 52,425 2003 April 2 - Jun 16, 2009 $ 32,500
Star Kappa Supramax 52,055 2001 Aug 24 - Nov 23, 2010 $ 47,800
Star Omicron Supramax 53,489 2005 Feb - May 2011 $ 43,000
Mar 2009 $ 55,900
Star Cosmo (3) Supramax 52,247 2005 Mar 2010 $ 41,900
Mar 2011 $ 27,900
VESSELS ACQUIRED - NOT YET DELIVERED
Jul 2009 $112,600
Star Ypsilon (4) Capesize 150,940 1991 Jul 2010 $ 93,300
Jul 2011 $ 74,100
VESSELS HELD FOR SALE
Star Iota (5) Panamax 78,585 1983 Mar 7 - Apr 17, 2009 $ 18,000
Grand Total 13 1,184,835
(1) The date range presented represents the earliest and latest expiration
dates allowed under the respective charter party. Charterers have the right
to add off-hire days, if any, which occurred during the charter period.
(2) Represents the gross daily rate.
(3) Star Cosmo delivered to Star Bulk on July 1, 2008.
(4) Star Ypsilon is expected to be delivered to Star Bulk in September
2008.
(5) Star Iota is expected to be delivered to its buyers in September 2008.
We commenced operations during the fourth quarter of 2007 (December 3,
2007) and therefore we are unable to present a meaningful comparison of our
first half and/or second quarter of 2008 and 2007 results.
Second Quarter 2008 Results
For the quarter ended June 30, 2008, Voyage Revenues amounted to $59.23
million and Operating Income amounted to $33.20 million. Net Income for
the second quarter of 2008 was $31.57 million representing $0.62 earnings
per share calculated on 50,963,213 weighted average number of shares, basic
and $0.56 earnings per share calculated on 56,047,237 weighted average
number of shares, diluted.
The above Net Income figure includes:
-- Vessel impairment loss of $0.59 million, or $0.01 per basic and
diluted share, in connection with the sale of the vessel Star Iota.
-- Amortization of fair value of below/above market acquired time
charters of $17.05 million, or $0.33 and $0.30 per basic and diluted share,
respectively, associated with time charters attached to vessels acquired,
which are amortized over the remaining period of the time charter as
increases to net revenue and depreciation expense.
-- Expenses of $0.79 million, or $0.02 and $0.01 per basic and diluted
share, respectively, relating to the amortization for the Stock-based
compensation recognized for a total 315,000 restricted common shares issued
to directors.
Excluding all the above items for the quarter ended June 30, 2008, adjusted
Net Income was $15.73 million representing $0.31 earnings per share
calculated on 50,963,213 weighted average number of shares, basic and $0.28
earnings per share calculated on 56,047,237 weighted average number of
shares, diluted. Therefore, the effect of the above items on earnings per
share would be $0.31 and $0.28 per basic and diluted share, respectively.
EBITDA for the second quarter of 2008 was $45.36 million. Adjusted EBITDA
for the same period excluding all the above items was $29.69 million.
Please see later in this release for a reconciliation of EBITDA and
adjusted EBITDA to net cash provided by cash flows from operating
activities.
An average of 10.6 vessels were owned and operated during the second
quarter of 2008, earning an average Time Charter Equivalent, or TCE rate of
$65,097 per day. Adjusted to exclude the effect of the amortization of
below/above market acquired time charters the time charter equivalent rate
for the second quarter of 2008 was $46,068. Please see later in this
release for further information regarding our calculation of TCE rate.
First Half 2008 Results
For the first half year ended June 30, 2008, Voyage Revenues amounted to
$100.92 million and Operating Income amounted to $50.89 million. Net
Income for the first half of 2008 was $48.29 million representing $1.01
earnings per share calculated on 47,855,865 weighted average number of
shares, basic and $0.91 earnings per share calculated on 52,798,013
weighted average number of shares, diluted.
The above Net Income figure includes:
-- Vessel impairment loss of $4.64 million, or $0.10 and $0.09 per basic
and diluted share, in connection with the sale of the vessel Star Iota.
-- Amortization of fair value of below/above market acquired time
charters of $34.92 million, or $0.73 and $0.66 per basic and diluted share,
respectively, associated with time charters attached to vessels acquired,
which are amortized over the remaining period of the time charter as
increases to net revenue and depreciation expense.
-- Expenses of $2.22 million, or $0.05 and $0.04 per basic and diluted
share, respectively, relating to the amortization for the stock-based
compensation recognized for a total 315,000 restricted common shares issued
to directors.
Excluding all the above items for the half year ended June 30, 2008,
adjusted Net Income was $20.24 million representing $0.42 earnings per
share calculated on 47,855,865 weighted average number of shares, basic and
$0.38 earnings per share calculated on 52,798,013 weighted average number
of shares, diluted. Therefore, the effect of the above items on earnings
per share would be $0.59 and $0.53 per basic and diluted share,
respectively.
EBITDA for the first half of 2008 was $71.90 million. Adjusted EBITDA for
the same period excluding all the above items was $43.85 million. Please
see later in this release for a reconciliation of EBITDA and adjusted
EBITDA to net cash provided by cash flows from operating activities.
An average of 9.4 vessels were owned and operated during the second quarter
of 2008, earning an average Time Charter Equivalent, or TCE rate of $64,378
per day. Adjusted to exclude the effect of the amortization of below/above
market acquired time charters the time charter equivalent rate for the
second quarter of 2008 was $41,747. Please see later in this release for
further information regarding our calculation of TCE rate.
Dry-docking related expenses
During the first quarter of 2008, we elected to change our method of
accounting for dry-docking costs from the deferral method, under which
costs associated with dry-docking a ship are deferred and charged to
expense over the period until a ship's next scheduled dry-docking, to the
direct expense method, under which we will expense all dry-docking costs as
incurred. We view this as a preferable method since it eliminates the
subjectivity and significant amount of time that is needed to determine
which costs related to dry-docking activities should be deferred and
amortized over a future period.
During the second quarter and first half of 2008 dry-docking costs amounted
$3.60 million and $6.40 million, respectively.
Fleet Developments
Vessel delivery
On July 1, 2008, the Company took delivery of the Supramax dry bulk carrier
vessel Star Cosmo.
Financing activities
On July 1, 2008, the Company concluded a loan agreement of up to $35
million with Piraeus Bank A.E. in order to partly finance the acquisition
cost of vessel Star Cosmo. The full amount of the loan was drawn down, on
same date. The loan bears interest at Libor plus a margin and will be
repaid in twenty-four quarterly installments through July 2014.
Summary of Selected Data
(TCE rate in Dollars in thousands)
Three months Six months
Ended Ended
June 30, 2008 June 30, 2008
-------------- --------------
Average number of vessels (1) 10.6 9.4
Number of vessels 11 11
Average age of operational fleet (in years)
(2) 10.4 10.4
Ownership days (3) 965 1,702
Available days (4) 911 1,573
Voyage days for fleet (5) 896 1,543
Fleet Utilization (6) 93% 91%
Time charter equivalent rate (7) 65,097 64,378
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number
of calendar days in that period.
(2) Average age of operational fleet is calculated as at June 30, 2008.
(3) Ownership days are the total calendar days each vessel in the fleet was
owned by Star Bulk for the relevant period.
(4) Available days for the fleet are the total calendar days the vessels
were in possession for the relevant period after subtracting for off-hire
days with major repairs dry-docking or special or intermediate surveys or
transfer of ownership.
(5) Voyage days are the total days the vessels were in our possession for
the relevant period after subtracting all off-hire days incurred for any
reason (including off-hire for dry-docking, major repairs, special or
intermediate surveys).
(6) Fleet utilization is calculated by dividing voyage days by ownership
days for the relevant period and takes into account the dry-docking
periods.
(7) Time charter equivalent rate, or TCE rate, is a measure of the average
daily revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE rate is determined by dividing voyage revenues (net of
voyage expenses) or time charter equivalent revenue or TCE revenue by
voyage days for the relevant time period. Voyage expenses primarily consist
of port, canal and fuel costs that are unique to a particular voyage, which
would otherwise be paid by the charterer under a time charter contract, as
well as commissions. TCE rate is a standard shipping industry performance
measure used primarily to compare period-to-period changes in a shipping
company's performance despite changes in the mix of charter types (i.e.,
spot charters, time charters and bareboat charters) under which the vessels
may be employed between the periods.
During the six months ended June 30, 2008, our fleet utilization was
significantly affected by the dry-docking of the three vessels, Star Beta,
Star Iota and Star Theta, which resulted in 130 off-hire days. If days
associated with these dry-dockings were excluded from the above table,
fleet utilization would amount to approximately 99% and 98% for second
quarter and first half 2008, respectively.
TCE rate and adjusted TCE rate
Star Bulk Carriers Corp. included TCE revenues, a non-GAAP measure, as it
provides additional meaningful information in conjunction with voyage
revenues, the most directly comparable GAAP measure, because it assists
Company management in making decisions regarding the deployment and use of
its vessels and in evaluating their financial performance. TCE rate is
also included herein because it is a standard shipping industry performance
measure used primarily to compare period-to-period changes in a shipping
company's performance despite changes in the mix of charter types (i.e.,
spot charters, time charters and bareboat charters) under which the vessels
may be employed between the periods and because the Company believes that
it presents useful information to investors.
The Company excluded amortization of fair value of above/below market
acquired time charter agreements, to derive the adjusted TCE rate.
The following table reflects the calculation of our TCE rates and adjusted
TCE rates as reflected in the unaudited interim consolidated condensed
income statements for the three and six month periods ended June 30, 2008:
Three months Six months
(Dollars in thousands) Ended Ended
June 30, 2008 June 30, 2008
-------------- --------------
Voyage revenues 59,226 100,921
Voyage expenses (899) (1,585)
Time Charter equivalent revenues 58,327 99,336
Total voyage days for fleet 896 1,543
-------------- --------------
Time charter equivalent (TCE) rate 65,097 64,378
============== ==============
Voyage revenues 59,226 100,921
Less:
Amortization of fair value of above/below
market acquired time charter agreements (17,050) (34,920)
Voyage expenses (899) (1,585)
Adjusted Time Charter equivalent revenues 41,277 64,416
Total voyage days for fleet 896 1,543
-------------- --------------
Adjusted Time charter equivalent (TCE) rate 46,068 41,747
============== ==============
Dividend Payments
On July 29, 2008, the Company declared dividend of $0.35 per share payable
on or about August 18, 2008, to the stockholders of record as of August 8,
2008.
EBITDA and adjusted EBITDA Reconciliation
Star Bulk Carriers Corp. considers EBITDA to represent net income before
interest, taxes, depreciation and amortization. EBITDA does not represent
and should not be considered as an alternative to net income or cash flow
from operations, as determined by United States generally accepted
accounting principles, or U.S. GAAP, and our calculation of EBITDA may not
be comparable to that reported by other companies. EBITDA is included
herein because it is a basis upon which the Company assesses its liquidity
position; it is used by our lenders as a measure of our compliance with
certain loan covenants; and because the Company believes that it presents
useful information to investors regarding the Company's ability to service
and/or incur indebtedness.
The Company excluded amortization expense associated with above/below
market acquired time charter associated with time charters attached to
vessels acquired, the vessel impairment loss and expenses relating to the
amortization of Stock-based compensation recognized to derive the adjusted
EBITDA rate.
The following table reconciles net cash provided by operating activities to
EBITDA and adjusted EBITDA:
(Dollars in thousands) Three months Six months
Ended Ended
June 30, 2008 June 30, 2008
-------------- --------------
Net cash provided by operating activities 30,776 47,594
Net increase (decrease) in current assets 183 1,882
Net decrease in current liabilities,
excluding current portion of long term
debt (2,816) (8,038)
Amortization of fair value of above/below
market acquired time charter agreements 17,050 34,920
Amortization of deferred Finance fees (64) (81)
Vessel impairment loss (588) (4,642)
Equity Incentive plan compensation expenses (789) (2,222)
Other non-cash (16) (74)
Net Interest expense 1,624 2,563
-------------- --------------
EBITDA 45,360 71,902
============== ==============
Less:
Amortization of fair value of above/below
market acquired time charter agreements (17,050) (34,920)
Plus:
Stock-based compensation 789 2,222
Vessel impairment loss 588 4,642
-------------- --------------
Adjusted EBITDA 29,687 43,846
============== ==============
Financial Statements
The Unaudited Interim Consolidated Condensed Income Statements, Balance
Sheets, and Cash Flow Statements include the accounts of Star Bulk Carriers
Corp. and its wholly owned subsidiaries and of its predecessor Star
Maritime Acquisition Corp.
Income Statements
The following are Star Bulk Carriers Corp.'s Unaudited Interim Consolidated
Condensed Income Statements for the three and the six month periods ended
June 30, 2007 and 2008:
(Expressed in thousands of U.S. dollars except for share and per share
data)
3-month 6-month 3-month 6-month
period period period period
ended June ended June ended June ended June
30, 2007 30, 2007 30, 2008 30, 2008
---------- ---------- ---------- ----------
Unaudited Unaudited Unaudited Unaudited
REVENUES:
Voyage revenues - - 59,226 100,921
---------- ---------- ---------- ----------
Voyage expenses - - 899 1,585
Vessel operating expenses - - 5,781 10,333
Drydocking expenses - - 3,598 6,392
Depreciation 1 1 12,166 21,046
Management fees - - 340 590
Vessel impairment loss - - 588 4,642
General and administrative
expenses 608 1,456 2,657 5,444
---------- ---------- ---------- ----------
Operating (loss) income (609) (1,457) 33,197 50,889
---------- ---------- ---------- ----------
Interest and finance costs - - (1,904) (3,242)
Interest income 1,188 2,311 280 679
Other - - (4) (33)
---------- ---------- ---------- ----------
Total other income
(expenses), net 1,188 2,311 (1,628) (2,596)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income 579 854 31,569 48,293
========== ========== ========== ==========
Earnings per share, basic 0.02 0.03 0.62 1.01
========== ========== ========== ==========
Earnings per share, diluted 0.02 0.03 0.56 0.91
========== ========== ========== ==========
Weighted average number of
shares outstanding, basic 29,026,924 29,026,924 50,963,213 47,855,865
========== ========== ========== ==========
Weighted average number of
shares outstanding,
diluted 29,026,924 29,026,924 56,047,237 52,798,013
========== ========== ========== ==========
Balance Sheet
The following are Star Bulk Carriers Corp.'s unaudited Consolidated
Condensed Balance Sheets as at December 31, 2007 and June 30, 2008:
(Expressed in thousands of U.S. dollars except for share and per share
data)
December 31, June 30,
2007 2008
------------- -------------
(unaudited) (unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 18,985 38,043
Trade accounts receivable, net - 40
Inventories 598 804
Prepaid expenses and other receivables 299 830
Due from managers - 1,045
Vessel held-for-sale - 15,562
------------- -------------
Total Current Assets 19,882 56,324
------------- -------------
FIXED ASSETS
Advances for vessels to be acquired 118,242 15,611
Vessels and other fixed assets, net 262,946 704,459
------------- -------------
Total Fixed Assets 381,188 720,070
------------- -------------
OTHER NON-CURRENT ASSETS
Deferred finance charges 600 1,029
Due from managers 120 180
Fair value of above market acquired time
charter agreements 1,952 1,585
Restricted cash - 11,010
------------- -------------
TOTAL ASSETS 403,742 790,198
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short term loan - 22,000
Accounts payable 168 1,636
Due to related party 480 1,262
Due to managers - 168
Accrued liabilities 1,493 3,136
Deferred revenue 916 4,293
------------- -------------
Total Current Liabilities 3,057 32,495
------------- -------------
NON-CURRENT LIABILITIES
Long term debt - 183,000
Fair value of below market acquired time
charter agreements 25,307 65,264
Other non-current liabilities - 74
------------- -------------
Total Non-current Liabilities 25,307 248,338
------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock; $0.01 par value, authorized
25,000,000 shares; none issued or outstanding
at December 31, 2007 and June 30, 2008 - -
Common Stock, $0.01 par value, 100,000,000
shares authorized; 42,516,433 and 54,532,989
shares issued and outstanding at December 31,
2007 and June 30, 2008, respectively 425 545
Additional paid in capital 368,454 477,472
Retained earnings 6,499 31,348
------------- -------------
Total Stockholders' Equity 375,378 509,365
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 403,742 790,198
============= =============
Cash flow Statements
The following are Star Bulk Carriers Corp.'s Unaudited Interim Consolidated
Condensed Cash Flow Statements for the six month periods ended June 30,
2007 and 2008:
(Expressed in thousands of U.S. dollars)
Six months Ended
June 30,
------------------
2007 2008
(unaudited)(unaudited)
Cash Flows from Operating Activities:
Net income 854 48,293
Adjustments to reconcile net income to net cash
provided by/(used in) operating activities:
Depreciation 1 21,046
Amortization of fair value of above market acquired
time charter agreements - 367
Amortization of fair value of below market acquired
time charter agreements - (35,286)
Amortization of deferred finance charges - 81
Vessel impairment loss - 4,642
Stock-based compensation - 2,222
Other non cash charges - 74
Changes in operating assets and liabilities:
(Increase)/Decrease in:
Value of trust account (3,169) -
Trade accounts receivable - (40)
Inventories - (206)
Prepaid expenses and other receivables 27 (531)
Due from managers - (1,105)
Increase/(Decrease) in:
Accounts payable (129) 1,468
Due to related party - 782
Accrued liabilities - 2,295
Due to managers - 168
Income taxes payable (207) -
Deferred interest 1,129 -
Deferred revenue - 3,377
-------- --------
Net cash provided by/(used in) Operating Activities (1,494) 47,647
-------- --------
Cash Flows from Investing Activities:
Advances for vessels to be acquired - (15,611)
Additions to vessel cost and office equipment (4) (270,385)
Increase in restricted cash - (11,010)
-------- --------
Net cash used in Investing Activities (4) (297,006)
-------- --------
Cash Flows from Financing Activities:
Proceeds from bank loan - 213,500
Bank loan repayment - (8,500)
Proceeds from exercise of warrants - 94,029
Repurchase of shares and warrants - (6,059)
Financing costs paid - (1,110)
Cash dividend - (23,443)
-------- --------
Net cash provided by Financing Activities - 268,417
-------- --------
Net increase/(decrease) in cash and cash equivalents (1,498) 19,058
Cash and cash equivalents at beginning of period 2,118 18,985
-------- --------
Cash and cash equivalents at end of period 620 38,043
======== ========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest payments - 2,548
Non-cash items:
Issue of common stock at fair value for delivery of
vessels - 18,946
Fair value of below market acquired time charter
agreements - 75,244
Other Developments
Star Bulk also announced today that a TMT Co. Ltd., an indirect shareholder
of Star Bulk through its nominee (F5 Capital), has alleged that it has
suffered unspecified damages arising from an alleged breach by Star Bulk of
a purported obligation under the Master Agreement dated as of January 12,
2007 (the "Master Agreement") to maintain a registration statement in
effect so as to permit TMT to sell its Star Bulk shares freely on the open
market. Among other things, TMT demanded that Star Bulk repurchase
approximately 3.8 million shares (the "Shares") from TMT at a share price
of $14.04 per share, which was the closing price of Star Bulk shares on
Nasdaq on June 2, 2008.
Star Bulk denied that it has any such obligation under the Master Agreement
and has been discussing the matter with TMT.
Star Bulk denies liability and would vigorously contest any claims that
might be brought by TMT.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1(866) 819-7111 (from the US), 0(800)
953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US).
Please quote "StarBulk."
A replay of the conference call will be available until August 20, 2008.
The United States replay number is 1(866) 247-4222; from the UK 0(800)
953-1533; the standard international replay number (+44) (0) 1452 55 00 00
and the access code required for the replay is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast over the Internet, through
the Star Bulk website (www.starbulk.com). Participants to the live webcast
should register on the website approximately 10 minutes prior to the start
of the webcast.
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne
transportation solutions in the dry bulk sector. Star Bulk's vessels
transport major bulks, which include iron ore, coal and grain and minor
bulks such as bauxite, fertilizers and steel products. Star Bulk was
incorporated in the Marshall Islands on December 13, 2006 and is
headquartered in Athens, Greece. Its common stock and warrants trade on the
NASDAQ Global Market under the symbols "SBLK" and "SBLKW" respectively.
Currently, Star Bulk has an operating fleet of twelve dry bulk carriers,
plus definitive agreements to acquire one Capesize dry bulk carrier and
sell its Panamax dry bulk carrier. The total fleet consists of four
Capesize, one Panamax and eight Supramax dry bulk vessels with an average
age of approximately 10 years and a combined cargo carrying capacity of
1,184,835 deadweight tons.
Forward-Looking Statements
The information in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
statements regarding: (1) the delivery and operation of assets of Star
Bulk; (2) Star Bulk's future operating or financial results; (3) future,
pending or recent acquisitions, business strategy, areas of possible
expansion, and expected capital spending or operating expenses; (4) drybulk
market trends, including charter rates and factors affecting vessel supply
and demand; and (5) other statements identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," "should,"
"may," or words of similar meaning.
Such forward-looking statements are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including without
limitation, Star Bulk's examination of historical operating trends, data
contained in their records and other data available from third parties.
Although Star Bulk believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to
predict and are beyond its control, Star Bulk cannot assure you that Star
Bulk will achieve or accomplish these expectations, beliefs or projections.
Important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure of a
seller to deliver one or more vessels, the strength of world economies and
currencies, general market conditions, including changes in charterhire
rates and vessel values, changes in demand that may affect attitudes of
time charterers to scheduled and unscheduled drydocking, changes in Star
Bulk's operating expenses, including bunker prices, dry-docking and
insurance costs, or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents and political events or acts by terrorists. Additional factors
that could cause Star Bulk's results to differ materially from those
described in the forward-looking statements can be found in Star Bulk's
Registration Statement on Form F-1/F-4 and reports on Form 6-K filed with
the Securities and Exchange Commission (the "SEC") and available at the
SEC's Internet site (http://www.sec.gov). The information set forth herein
speaks only as of the date hereof, and Star Bulk disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Contact Information: Company: George Syllantavos CFO Star Bulk Carriers Corp. 7 Fragoklisias Str. Maroussi 15125 Athens, Greece www.starbulk.com E-mail: ir@starbulk.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com www.capitallink.com