ATHENS, GREECE--(Marketwired - Nov 21, 2017) - DryShips Inc. (
Updated Key Information as of November 20, 2017
- Cash and cash equivalents: approximately $25.9 million (or $0.25 per share)
- Book value of vessels, including advances: approximately $786.5 million (or $7.54 per share)
- Debt outstanding balance: approximately $185.5 million (or $1.78 per share)
- Number of Shares Outstanding: 104,274,708
Recent Developments
- Credit Facility with Sierra Investments Inc.
Following the closing of the previously announced, $100.0 million private placement and $100.0 million rights offering, on October 25, 2017, the Company's credit facility with Sierra Investments Inc., an entity affiliated with Mr. George Economou, the Company's Chairman and Chief Executive Officer, with an outstanding balance of approximately $73.8 million, was refinanced with a new loan facility secured by assets, and which has a loan to value ratio of 50%, a tenor of 5 years, no amortization and a margin of LIBOR plus 4.5%. No arrangement fees or otherwise were charged in connection with the refinancing.
- Appointment of new director
Mr. George Kokkodis was appointed to the Board of the Company as of November 21, 2017. From 2009 to January 2015, Mr. Kokkodis has been an Independent Business Introducer and Independent Client Advisor of financial investments at BNP Paribas (Suisse) SA, where he was a Senior Private Banker from 2003 to 2009 and the Head of the Greek Private Banking Desk at BNP Paribas London from 1999 to 2003. From 1998 to 1999, Mr. Kokkodis served as Vice President of Private Banking at Merrill Lynch International Bank, London UK and, from 1996 to 1998 held the same position at Merrill Lynch Bank Suisse S.A. Prior to that, Mr. Kokkodis was Vice President of Private Banking at Bankers Trust International PLC, London UK from 1993 to 1996. Mr. Kokkodis holds a Bachelor of Science in Aeronautical Engineering from the Imperial College of Science and Technology and a Master of Science in Aeronautical Engineering from the University of Glasgow. Mr. Kokkodis was a member of the board of directors of MIG Real Estate from April 2011 to September 2015. Mr. Kokkodis was a member of the board of directors of Ocean Rig UDW Inc. from September 2015 to November 2017.
Following the appointment of Mr. Kokkodis, the Company's Board of Directors is now comprised of six directors, four of whom are considered independent under the NASDAQ rules.
Fleet List
The table below describes the Company's fleet as of November 20, 2017, including vessels the Company has agreed to acquire:
| Year | Gross rate | Redelivery | ||||||||
| Built | DWT | Per day | Earliest | Latest | ||||||
| Drybulk fleet | ||||||||||
| Panamax: | ||||||||||
| Bargara | 2002 | 74,832 | Spot | N/A | N/A | |||||
| Capitola | 2001 | 74,816 | Spot | N/A | N/A | |||||
| Catalina | 2005 | 74,432 | Spot | N/A | N/A | |||||
| Ecola | 2001 | 73,391 | Spot | N/A | N/A | |||||
| Levanto | 2001 | 73,925 | Spot | N/A | N/A | |||||
| Ligari | 2004 | 75,583 | Spot | N/A | N/A | |||||
| Maganari | 2001 | 75,941 | Spot | N/A | N/A | |||||
| Majorca | 2005 | 74,477 | Spot | N/A | N/A | |||||
| Marbella | 2000 | 72,561 | Spot | N/A | N/A | |||||
| Mendocino | 2002 | 76,623 | Spot | N/A | N/A | |||||
| Rapallo | 2009 | 75,123 | Spot | N/A | N/A | |||||
| Raraka | 2012 | 76,037 | Spot | N/A | N/A | |||||
| Redondo | 2000 | 74,716 | Spot | N/A | N/A | |||||
| Newcastlemax: | ||||||||||
| Bacon | 2013 | 205,170 | T/C Index Linked | Aug-18 | Jan-19 | |||||
| Judd | 2015 | 205,796 | $9,350 | Dec-17 | Apr-18 | |||||
| Marini | 2014 | 205,854 | $19,400 | Feb-18 | May-18 | |||||
| Morandi | 2013 | 205,854 | T/C Index Linked | Feb-18 | May-18 | |||||
| Kamsarmax: | ||||||||||
| Castellani | 2014 | 82,129 | Spot | N/A | N/A | |||||
| Kelly | 2017 | 81,300 | Spot | N/A | N/A | |||||
| Matisse | 2014 | 81,128 | Spot | N/A | N/A | |||||
| Nasaka | 2014 | 81,918 | Spot | N/A | N/A | |||||
| Valadon | 2014 | 81,198 | Spot | N/A | N/A | |||||
| Tanker fleet | ||||||||||
| Very Large Crude Carrier: | ||||||||||
| Shiraga | 2011 | 320,105 | Spot | N/A | N/A | |||||
| Suezmax: | ||||||||||
| Samsara | 2017 | 159,855 | $18,000 Base rate plus profit share |
Mar.-22 | May-25 | |||||
| Aframax: | ||||||||||
| Balla | 2017 | 113,293 | Spot | N/A | N/A | |||||
| Stamos | 2012 | 115,666 | Spot | N/A | N/A | |||||
| Gas Carrier fleet | ||||||||||
| Very Large Gas Carriers: | ||||||||||
| Anderida | 2017 | 51,850 | $30,000 | Jun.-22 | Jun.-25 | |||||
| Aisling | 2017 | 51,850 | $30,000 | Sep.-22 | Sep.-25 | |||||
| Mont Fort | 2017 | 51,850 | $28,833 | Nov.-27 | Nov.-27 | |||||
| Mont Gele (1) | 2018 | 51,850 | $28,833 | Jan.-28 | Jan.-28 | |||||
| (1) Expected to be delivered in January 2018. | ||||||||||
| Offshore Supply fleet | ||||||||||
| Platform Supply Vessels: | ||||||||||
| Crescendo | 2012 | 1,457 | Laid up | N/A | N/A | |||||
| Colorado | 2012 | 1,430 | Laid up | N/A | N/A | |||||
| Oil Spill Recovery Vessels: | ||||||||||
| Indigo | 2013 | 1,401 | Laid up | N/A | N/A | |||||
| Jacaranda | 2012 | 1,360 | Laid up | N/A | N/A | |||||
| Emblem | 2012 | 1,363 | Laid up | N/A | N/A | |||||
| Jubilee | 2012 | 1,317 | Laid up | N/A | N/A | |||||
| Drybulk Carrier, Tanker and Gas Carrier Segments Summary Operating Data (unaudited) | ||||||||
| (Dollars in thousands, except average daily results) | ||||||||
| Drybulk | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2016 | 2017 | 2016 | 2017 | |||||
| Average number of vessels(1) | 19.7 | 21.8 | 20.9 | 16.8 | ||||
| Total voyage days for vessels(2) | 1,353 | 2,002 | 5,183 | 4,582 | ||||
| Total calendar days for vessels(3) | 1,809 | 2,002 | 5,722 | 4,582 | ||||
| Fleet utilization(4) | 74.8% | 100.0% | 90.6% | 100.0% | ||||
| Time charter equivalent(5) | $3,442 | $8,557 | $3,238 | $7,323 | ||||
| Vessel operating expenses (daily)(6) | $4,926 | $6,085 | $4,839 | $5,917 | ||||
| Tanker | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2016 | 2017 | 2016 | 2017 | |||||
| Average number of vessels(1) | - | 4.0 | - | 2.0 | ||||
| Total voyage days for vessels(2) | - | 368 | - | 543 | ||||
| Total calendar days for vessels(3) | - | 368 | - | 543 | ||||
| Fleet utilization(4) | - | 100.0% | - | 100.0% | ||||
| Time charter equivalent(5) | - | $10,932 | - | $10,650 | ||||
| Vessel operating expenses (daily)(6) | - | $7,763 | - | $11,013 | ||||
| Gas Carrier | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2016 | 2017 | 2016 | 2017 | |||||
| Average number of vessels(1) | - | 1.2 | - | 0.4 | ||||
| Total voyage days for vessels(2) | - | 111 | - | 114 | ||||
| Total calendar days for vessels(3) | - | 111 | - | 114 | ||||
| Fleet utilization(4) | - | 100.0% | - | 100.0% | ||||
| Time charter equivalent(5) | - | $28,216 | - | $27,860 | ||||
| Vessel operating expenses (daily)(6) | - | $15,678 | - | $22,447 | ||||
(1) Average number of vessels is the number of vessels that constituted the Company's fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company's fleet during the period divided by the number of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were in the Company's possession for the relevant period net of dry-docking and laid-up days.
(3) Calendar days are the total number of days the vessels were in the Company's possession for the relevant period including dry-docking days and laid-up days.
(4) Fleet utilization is the percentage of time that the Company's vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. The Company's method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) 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 and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from the Company's vessels, the most directly comparable U.S. GAAP measure, because it assists the Company's management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also 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. Please see below for a reconciliation of TCE rates to voyage revenues.
(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, is calculated by dividing vessel operating expenses by fleet calendar days net of laid-up days for the relevant time period.
| Drybulk Carrier, Tanker and Gas Carrier Segments Summary Operating Data (unaudited) - continued | ||||||||||||||||
| (In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days) | ||||||||||||||||
| Drybulk | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2017 | 2016 | 2017 | |||||||||||||
| Voyage revenues | $ | 6,809 | $ | 19,203 | $ | 22,032 | $ | 39,916 | ||||||||
| Voyage expenses | (2,152 | ) | (2,072 | ) | (5,251 | ) | (6,364 | ) | ||||||||
| Time charter equivalent revenues | $ | 4,657 | $ | 17,131 | $ | 16,781 | $ | 33,552 | ||||||||
| Total voyage days for fleet | 1,353 | 2,002 | 5,183 | 4,582 | ||||||||||||
| Time charter equivalent (TCE) | $ | 3,442 | $ | 8,557 | $ | 3,238 | $ | 7,323 | ||||||||
| Tanker | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | |||||||||||
| Voyage revenues | $ | - | $ | 7,466 | $ | - | $ | 11,072 | ||||||
| Voyage expenses | - | (3,443 | ) | - | (5,289 | ) | ||||||||
| Time charter equivalent revenues | $ | - | $ | 4,023 | $ | - | $ | 5,783 | ||||||
| Total voyage days for fleet | - | 368 | - | 543 | ||||||||||
| Time charter equivalent (TCE) | $ | - | $ | 10,932 | $ | - | $ | 10,650 | ||||||
| Gas Carrier | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | |||||||||||
| Voyage revenues | $ | - | $ | 3,266 | $ | - | $ | 3,316 | ||||||
| Voyage expenses | - | (134 | ) | - | (140 | ) | ||||||||
| Time charter equivalent revenues | $ | - | $ | 3,132 | $ | - | $ | 3,176 | ||||||
| Total voyage days for fleet | - | 111 | - | 114 | ||||||||||
| Time charter equivalent (TCE) | $ | - | $ | 28,216 | $ | - | $ | 27,860 | ||||||
| DryShips Inc. | ||||||||||||||||
| Financial Statements | ||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Expressed in Thousands of U.S. Dollars except for share and per share data) | Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
| 2016 | 2017 | 2016 | 2017 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Voyage revenues | $ | 12,086 | $ | 29,934 | $ | 42,284 | $ | 58,123 | ||||||||
| 12,086 | 29,934 | 42,284 | 58,123 | |||||||||||||
| EXPENSES: | ||||||||||||||||
| Voyage expenses | 2,366 | 5,767 | 6,364 | 12,396 | ||||||||||||
| Vessel operating expenses | 9,041 | 17,141 | 36,554 | 40,375 | ||||||||||||
| Depreciation | 872 | 5,530 | 2,595 | 8,632 | ||||||||||||
| Vessels impairment, loss on sales and other | (4,109 | ) | - | 41,836 | 300 | |||||||||||
| General and administrative expenses | 7,352 | 7,843 | 25,375 | 23,638 | ||||||||||||
| Other, net | 279 | 241 | (482 | ) | 681 | |||||||||||
| Operating loss | (3,715 | ) | (6,588 | ) | (69,958 | ) | (27,899 | ) | ||||||||
| OTHER INCOME / (EXPENSES): | ||||||||||||||||
| Interest and finance costs, net of interest income | (1,705 | ) | (3,604 | ) | (7,051 | ) | (8,313 | ) | ||||||||
| Loss on private placement | - | (7,600 | ) | - | (7,600 | ) | ||||||||||
| Other, net | 173 | (190 | ) | (2,707 | ) | (521 | ) | |||||||||
| Total other expenses, net | (1,532 | ) | (11,394 | ) | (9,758 | ) | (16,434 | ) | ||||||||
| Net loss | (5,247 | ) | (17,982 | ) | (79,716 | ) | (44,333 | ) | ||||||||
| Equity in losses of Ocean Rig | - | - | (41,454 | ) | - | |||||||||||
| Net loss attributable to DryShips Inc. | $ | (5,247 | ) | $ | (17,982 | ) | $ | (121,170 | ) | $ | (44,333 | ) | ||||
| Net loss attributable to DryShips Inc. common stockholders | (5,795 | ) | (15,177 | ) | (121,774 | ) | (41,528 | ) | ||||||||
| Loss per common share, basic and diluted (1) | $ | (60,364.58 | ) | $ | (0.42 | ) | $ | (1,739,628.57 | ) | $ | (3.36 | ) | ||||
| Weighted average number of shares, basic and diluted (1) | 96 | 36,186,606 | 70 | 12,356,150 | ||||||||||||
| (1) Share and per share data for 2016 give effect to a cumulative 1-for-7,840 reverse stock split between January 23, 2017 and July 21, 2017. |
| DryShips Inc. | |||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||
| (Expressed in Thousands of U.S. Dollars) | December 31, 2016 | September 30, 2017 | |||||
| ASSETS | |||||||
| Cash, cash equivalents, including restricted cash (current and non-current) | $ | 76,774 | $ | 52,676 | |||
| Other current and non-current assets | 21,406 | 80,227 | |||||
| Advances for vessels under construction | - | 47,758 | |||||
| Vessels, net | 95,550 | 682,223 | |||||
| Total assets | 193,730 | 862,884 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Total debt | 133,428 | 240,630 | |||||
| Total other liabilities | 10,528 | 14,785 | |||||
| Total stockholders' equity | 49,774 | 607,469 | |||||
| Total liabilities and stockholders' equity | $ | 193,730 | $ | 862,884 | |||
Adjusted EBITDA Reconciliation
Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel and investment impairments and certain other non-cash items as described below and gains or losses on interest rate swaps. Adjusted 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 the Company's calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by the Company's lenders as a credit metric and the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.
| The following table reconciles net loss to Adjusted EBITDA: | ||||||||||||||||
| (Dollars in thousands) | Three Months Ended September 30, 2016 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | ||||||||||||
| Net loss attributable to DryShips Inc. | $ | (5,247 | ) | $ | (17,982 | ) | $ | (121,170 | ) | $ | (44,333 | ) | ||||
| Add: Net interest expense | 1,705 | 3,604 | 7,051 | 8,313 | ||||||||||||
| Add: Depreciation | 872 | 5,530 | 2,595 | 8,632 | ||||||||||||
| Add: Dry-dockings and class survey costs | 14 | - | 181 | - | ||||||||||||
| Add: Impairments losses on sales and other | (4,109 | ) | - | 41,836 | 300 | |||||||||||
| Add: Loss on private placement | - | 7,600 | - | 7,600 | ||||||||||||
| Add: Income taxes | 2 | 61 | 21 | 81 | ||||||||||||
| Add: Gain on interest rate swaps | (1,112 | ) | - | (403 | ) | - | ||||||||||
| Add: Equity in losses of affiliate | - | - | 41,454 | - | ||||||||||||
| Adjusted EBITDA | $ | (7,875 | ) | $ | (1,187 | ) | $ | (28,435 | ) | $ | (19,407 | ) | ||||
About DryShips Inc.
The Company is a diversified owner of ocean going cargo vessels that operate worldwide. The Company owns a fleet of 36 vessels comprising of (i) 13 Panamax drybulk vessels; (ii) 4 Newcastlemax drybulk vessels; (iii) 5 Kamsarmax drybulk vessels; (iv) 1 Very Large Crude Carrier; (v) 2 Aframax tankers; (vi) 1 Suezmax tanker; (vii) 4 Very Large Gas Carriers, 1 of which is expected to be delivered in January 2018; and (viii) 6 offshore support vessels, including 2 platform supply and 4 oil spill recovery vessels.
DryShips' common stock is listed on the NASDAQ Capital Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com
Forward-Looking Statement
Matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with such safe harbor legislation.
Forward-looking statements reflect the Company's current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company 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 the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the factors related to the strength of world economies and currencies, general market conditions, including changes in charter rates, utilization of vessels and vessel values, failure of a seller or shipyard to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, the Company's inability to procure acquisition financing, default by one or more charterers of the Company's ships, changes in demand for drybulk or LPG commodities, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydockings, changes in the Company's voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations, changes in the Company's relationships with the lenders under its debt agreements, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by DryShips Inc. with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F, as amended.
Contact Information:
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: dryships@capitallink.com