SOURCE: Safe Bulkers, Inc.

Safe Bulkers, Inc.

July 30, 2015 17:30 ET

Safe Bulkers, Inc. Reports Second Quarter and First Six Months 2015 Results and Declares Quarterly Dividend on Common Stock

MONACO--(Marketwired - Jul 30, 2015) - 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 month period ended June 30, 2015. The Board of Directors of the Company also declared a quarterly dividend of $0.01 per share of common stock for the second quarter of 2015.

Summary of Second Quarter 2015 Results

  • Net revenue for the second quarter of 2015 decreased by 15% to $31.8 million from $37.2 million during the same period in 2014.
  • Net loss for the second quarter of 2015 was $4.4 million from net income of $2.1 million during the same period in 2014. Adjusted net loss1 for the second quarter of 2015 was $3.9 million from Adjusted net income of $3.2 million, during the same period in 2014.
  • EBITDA2 for the second quarter of 2015 decreased by 33% to $10.1 million from $15.1 million during the same period in 2014.Adjusted EBITDA3 for the second quarter of 2015 decreased by 34% to $10.7 million from $16.3 million during the same period in 2014.
  • Loss per share4and Adjusted loss per share4 for the second quarter of 2015 was $0.10 and $0.09 respectively, calculated on a weighted average number of 83,470,867shares, compared to earnings per share4 ("EPS") of $0.01 and Adjusted EPS4 $0.02 in the second quarter of 2014, calculated on a weighted average number of 83,444,365 shares.
  • The Board of Directors of the Company declared a dividend of $0.01 per share for the second quarter of 2015.

Summary of Six Months Ended June 30, 2015 Results

  • Net revenues for the six months of 2015 decreased by 19% to $63.9 million from $78.5 million during the same period in 2014.
  • Net loss for the six months of 2015 was $10.5 million from net income of $13.3 million during the same period in 2014. Adjusted net loss1 for the six months of 2015 was $8.4 million from Adjusted net income5 of $11.8 million during the same period in 2014.
  • EBITDA2 for the six months of 2015 decreased by 55% to $17.6 million from $38.9 million during the same period in 2014. Adjusted EBITDA3 for the six months of 2015 decreased by 47% to $19.7million from $37.4 million during the same period in 2014.
  • Loss per share4and Adjusted loss per share4 for the six months of 2015 was $0.21 and $0.19 respectively, calculated on a weighted average number of 83,466,487shares, compared to Earnings per share4 ("EPS") of $0.13 and Adjusted EPS4 $0.11 in the six months of 2014, calculated on a weighted average number of 83,442,759shares.

Fleet and Employment Profile

In June 2015, the Company took delivery of Kypros Loyalty (Hull No. 827), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.

In June 2015, the Company delayed the delivery of a newbuild vessel for 2019.

In July 2015, the Company took delivery of Pedhoulas Cherry (Hull No. 1148), a 82,000 dwt, Chinese eco-design newbuild Kamsarmax class vessel. Upon her delivery, the vessel was employed in the spot charter market.

As of July 27, 2015 the Company's operational fleet comprised of 36 drybulk vessels with an average age of 5.7 years and an aggregate carrying capacity of 3.3 million dwt. The fleet consists of 14 Panamax class vessels, 8 Kamsarmax class vessels, 11 Post-Panamax class vessels and 3 Capesize class vessels, all built from 2003 onwards.

As of July 27, 2015, the Company had contracted to acquire eight eco-design newbuild vessels, comprised of 2 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 1 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt.

Set out below is a table showing the contracted employment of the Company's vessels as of July 27, 2015:

                 
Vessel Name DWT Year Built(1)   Country of construction   Charter Rate (2)USD/day   Charter Duration(3)
Panamax
Maria 76,000 2003   Japan   7,464   Feb 2015 - Aug 2015
Koulitsa 76,900 2003   Japan   13,250   Jun 2014 - Aug 2015
Paraskevi 74,300 2003   Japan   7,400   Jul 2015 - May 2016
Vassos 76,000 2004   Japan   7,250   Jul 2015 - Aug 2015
Katerina 76,000 2004   Japan   BPI(4) + 6%   Apr 2015 - Apr 2016
Maritsa 76,000 2005   Japan   6,200   May 2015 - Oct 2015
Efrossini 75,000 2012   Japan   6,825   May 2015 - Sep 2015
Zoe 75,000 2013   Japan   6,950   Jun 2015 - Oct 2015
Kypros Land 77,100 2014   Japan   9,600   Jun 2015 - Sep 2015
Kypros Sea 77,100 2014   Japan   7,500   May 2015 - Aug 2015
Kypros Unity 78,000 2014   Japan   6,000   May 2015 - Jul 2015
Kypros Bravery 78,000 2015   Japan        
Kypros Sky 77,100 2015   Japan   15,400   Apr 2015 - Apr 2025
Kypros Loyalty 78,000 2015   Japan   7,450   Jun 2015 - Aug 2015
Kamsarmax
Pedhoulas Merchant 82,300 2006   Japan        
Pedhoulas Trader 82,300 2006   Japan   BPI(4) + 6.5%   Aug 2013 - Aug 2015
Pedhoulas Leader 82,300 2007   Japan   8,150   Jun 2015 - Oct 2015
Pedhoulas Commander 83,700 2008   Japan   8,800   Jun 2015 - Aug 2015
Pedhoulas Builder 81,600 2012   China   7,700
 8,625
  Mar 2015 - Aug 2015
Aug 2015 - Mar 2016
Pedhoulas Fighter 81,600 2012   China   7,000   May 2015 - Nov 2015
Pedhoulas Farmer 81,600 2012   China   11,000   Sep 2014 - Aug 2015
Pedhoulas Cherry 82,000 2015   China   7,875   Jul 2015 - Oct 2015
Post-Panamax
                 
Stalo 87,000 2006   Japan   9,650   Jun 2015 - Aug 2015
Marina 87,000 2006   Japan        
Xenia 87,000 2006   Japan   9,450   Jun 2015 - Oct 2015
Sophia 87,000 2007   Japan   10,500   Jun 2015 - Aug 2015
Eleni 87,000 2008   Japan   11,200   May 2015 - Aug 2015
Martine 87,000 2009   Japan   BPI(4) + 10%   Apr 2015 - Mar 2016
Andreas K 92,000 2009   South Korea   8,600   Jul 2015 - Sep 2015
Panayiota K 92,000 2010   South Korea   10,000   Jun 2015 - Aug 2015
Venus Heritage 95,800 2010   Japan   P1A(5) + 10%   Jun 2015 - Jan 2016
Venus History 95,800 2011   Japan   9,000   Jun 2015 - Aug 2015
Venus Horizon 95,800 2012   Japan   8,900   Jun 2015 - Aug 2015
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 3,256,800  
     
1) For existing vessels the year represents the year built.
2) Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable. Charter agreements may provide for additional payments, namely ballast bonus, to compensate for vessel repositioning.
3) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of July 27, 2015, scheduled start dates. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.
4) A period time charter at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium.
5) A period time charter at a gross daily charter rate linked to the Baltic Panamax Index for transatlantic round voyage ("P1A") plus a premium.
6) 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. 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 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 July 27, 2015 was:

     
2015 (remaining)   43%
2015 (full year)   74%
2016   13%
2017   10%
     

Capital expenditure requirements and liquidity

As of June 30, 2015, the Company had agreed to acquire nine newbuild vessels, with one to be delivered in 2015; three to be delivered in 2016, three to be delivered in 2017, one to be delivered in 2018 and one to be delivered in 2019. The remaining capital expenditure requirements to shipyards or sellers for the delivery of these nine newbuilds, before minor adjustments for shipyards' costs related to such delayed deliveries, amounted to $226.5 million, of which $50.5 million was scheduled to be paid in 2015, $63.3 million in 2016, $67.3 million in 2017,$23.7 million in 2018 and $21.7 million in 2019.

As of June 30, 2015, the Company had liquidity of $355.6 million consisting of $118.1 million in cash, $7.7 million in restricted cash, $57.8 million available under existing revolving credit facilities and $172.0 million under committed loan facilities for nine newbuild vessels.

Dividend Declaration on the Common Stock

The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.01 per share payable on or about August 28, 2015 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 18, 2015.

The Company has 83,475,555 shares of common stock issued and outstanding as of today's date.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company's existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or not be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "In this part of the shipping cycle our capital expenditure requirements are extended through 2019 and are fully covered. We maintain a strong balance sheet and remained focused on lean operations." 

Conference Call

On Friday, July 31, 2015at 10:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until August 7, 2015 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 (www.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 Second Quarter 2015 Results

Net loss was $4.4 million for the second quarter of 2015 compared to net income of $2.1 million for the second quarter of 2014, mainly due to the following factors:

Net revenues: Net revenues decreased by 15% to $31.8 million for the second quarter of 2015, compared to $37.2 million for the same period in 2014, mainly due to a decrease in charter rates. The Company operated 34.14 vessels on average during the second quarter of 2015, earning aTCE5 rate of $8,615, compared to 31.00 vessels and a TCE rate of $11,642 during the same period in 2014.

Vessel operating expenses: Vessel operating expenses remained stable at $12.6 million for the second quarter of 2015 compared to the same period in 2014, as a result of the net effect of increased crew expenses, mainly due to increased average number of vessels from 31.00 to 34.14 and decreased repairs, maintenance and drydocking costs, mainly due to decreased number of dry dockings from one during the second quarter of 2014 to noneduring the second quarter of 2015.

Depreciation: Depreciation increased to $11.6 million for the second quarter of 2015, compared to $10.8 million for the same period in 2014, as a result of the increase in the average number of vessels operated by the Company during the second quarter of 2015.

Loss from inventory valuation: Loss from inventory valuation amounted to $0.5 million for the second quarter of 2015, compared to zero for the same period in 2014, resulting from the valuation of the bunkers remaining on board our vessels, which was affected by the decline of the bunker market prices during the second quarter of 2015 compared to the same period in 2014.

Loss on derivatives: Loss on derivatives decreased by 82% to $0.2 million in the second quarter of 2015, compared to a loss of $1.1 million for the same period in 2014, 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. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.1 years as of June 30, 2015. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Voyage expenses: Voyage expenses increased by 11% to $5.1 million for the second quarter of 2015 compared to $4.6 million for the same period in 2014, mainly due to an increase in the vessels' repositioning expenses.

Daily vessel operating expenses6: Daily vessel operating expenses decreased by 9% to $4,048 for the second quarter of 2015 compared to $4,455 for the same period in 2014, mainly due to increased average number of operated vessels from 31.00 to 34.14 and consequently increased number of ownership days.

Daily general and administrative expenses6: Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager7 and daily costs incurred in relation to our operation as a public company, decreased by 12% to $1,087 for the second quarter of 2015, compared to $1,236 for the same period in 2014. The decrease is mainly attributable to a higher number of ownership days.

   
Unaudited Interim Financial Information and Other Data  
   
SAFE BULKERS, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/LOSS (UNAUDITED)  
(In thousands of U.S. Dollars except for share and per share data)  
   
    Three-Months Period Ended June 30,     Six-Months Period Ended June 30,  
    2014     2015     2014     2015  
REVENUES:                        
  Revenues   38,611     33,022     81,417     66,309  
  Commissions   (1,433 )   (1,180 )   (2,896 )   (2,413 )
  Net revenues   37,178     31,842     78,521     63,896  
EXPENSES:                        
  Voyage expenses   (4,638 )   (5,075 )   (8,993 )   (9,894 )
  Vessel operating expenses   (12,568 )   (12,576 )   (25,216 )   (26,925 )
  Depreciation   (10,766 )   (11,602 )   (21,033 )   (22,701 )
  General and administrative expenses   (3,487 )   (3,378 )   (6,491 )   (6,605 )
  Early redelivery cost   -     -     (532 )   -  
  Gain on asset purchase cancellation   -     -     3,633     -  
  Loss from inventory valuation   -     (465 )   -     (956 )
  Operating income/(loss)   5,719     (1,254 )   19,889     (3,185 )
                         
OTHER (EXPENSE) / INCOME:                        
  Interest expense   (2,228 )   (2,429 )   (4,393 )   (4,575 )
  Other finance costs   (200 )   (155 )   (418 )   (763 )
  Interest income   255     23     486     37  
  Loss on derivatives   (1,097 )   (202 )   (1,544 )   (1,358 )
  Foreign currency (loss)/gain   (59 )   79     (97 )   241  
  Amortization and write-off of deferred finance charges  
(318
)   (511 )   (619 )   (893 )
  Net income/(loss)   2,072     (4,449 )   13,304     (10,496 )
  Less preferred dividend   1,499     3,550     2,299     7,100  
Net income/(loss)available to common shareholders   573     (7,999 )   11,005     (17,596 )
  Earnings/(loss) per share   0.01     (0.10 )   0.13     (0.21 )
Weighted average number of shares   83,444,365     83,470,867     83,442,759     83,466,487  
                         
 
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
 
    December 31, 2014   June 30,2015
ASSETS        
  Cash and restricted cash   118,250   121,850
  Other current assets   17,642   21,066
  Vessels, net   960,423   1,026,221
  Advances for vessel acquisition and vessels under construction   74,243   64,082
  Restricted cash non-current   4,263   3,954
  Other non-current assets   7,508   7,095
  Total assets   1,182,329   1,244,268
         
LIABILITIES AND EQUITY        
  Current portion of long-term debt   17,121   27,467
  Other current liabilities   11,597   9,701
  Long-term debt, net of current portion   452,447   525,882
  Other non-current liabilities   1,065   1,157
  Shareholders' equity   700,099   680,061
  Total liabilities and equity   1,182,329   1,244,268
         
   
TABLE 1  
RECONCILIATION OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER SHARE  
   
    Three-Months
Period Ended June 30,
    Six-Months
Period Ended June 30,
 
(In thousands of U.S. Dollars except for share and per share data)   2014   2015     2014     2015  
Net Income/(loss) - Adjusted Net Income/(loss)                      
Net Income/(loss)   2,072   (4,449 )   13,304     (10,496 )
Less Gain on asset purchase cancellation   -   -     (3,633 )   -  
Less Early redelivery cost   -   -     532     -  
Plus Loss on derivatives   1,097   202     1,544     1,358  
Plus Loss from inventory valuation   -   465     -     956  
Plus Foreign currency loss/(gain)   59   (79 )   97     (241 )
Adjusted Net Income/(loss)   3,228   (3,861 )   11,844     (8,423 )
                       
EBITDA - Adjusted EBITDA                      
Net Income/(loss)   2,072   (4,449 )   13,304     (10,496 )
Plus Net Interest Expense   1,973   2,406     3,907     4,538  
Plus Depreciation   10,766   11,602     21,033     22,701  
Plus Amortization   318   511     619     893  
EBITDA   15,129   10,070     38,863     17,636  
Less Gain on asset purchase cancellation   -   -     (3,633 )   -  
Less Early redelivery cost   -   -     532     -  
Plus Loss on derivatives   1,097   202     1,544     1,358  
Plus Loss from inventory valuation   -   465     -     956  
Plus Foreign currency loss/(gain)   59   (79 )   97     (241 )
ADJUSTED EBITDA   16,285   10,658     37,403     19,709  
                       
Earnings/(loss) per share                      
Net Income/(loss)   2,072   (4,449 )   13,304     (10,496 )
Less preferred dividend   1,499   3,550     2,299     7,100  
Net income/(loss) available to common shareholders   573   (7,999 )   11,005     (17,596 )
Weighted average number of shares   83,444,365   83,470,867     83,442,759     83,466,487  
Earnings/(loss) per share   0.01   (0.10 )   0.13     (0.21 )
                       
Adjusted Earnings/(loss) per share                      
Adjusted Net Income/(loss)   3,228   (3,861 )   11,844     (8,423 )
Less preferred dividend   1,499   3,550     2,299     7,100  
Adjusted Net income/(loss) available to common shareholders   1,729   (7,411 )   9,545     (15,523 )
Weighted average number of shares   83,444,365   83,470,867     83,442,759     83,466,487  
Adjusted Earnings/(loss) per share   0.02   (0.09 )   0.11     (0.19 )
                       

EBITDA, Adjusted EBITDA, Adjusted Net Income/(loss), Adjusted Net Income/(loss) available to common shareholders and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP.

Adjusted Net Income/(loss) represents Net income/(loss) before gain on asset purchase cancellation, early redeliverycost, loss from inventory valuation, loss on derivatives and (loss)/gain on foreign currency.

Adjusted Net Income/(loss) available to common shareholders represents Adjusted Net Income/(loss) less preferred dividend.

EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain on asset purchase cancellation, early redelivery cost, loss from inventory valuation, loss on derivatives and (loss)/gainon foreign currency. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects from gain on asset purchase cancellation, early redelivery cost, loss from inventory valuation, loss on derivatives and (loss)/gainon foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.

EBITDA, Adjusted EBITDA, Adjusted Net Income/(loss), Adjusted Net Income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under US GAAP. EBITDA and Adjusted EBITDA should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.

   
TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS  
   
    Three-Months
Period Ended
June 30,
    Six-Months
Period Ended
June 30,
 
    2014     2015     2014     2015  
                                 
FLEET DATA                                
Number of vessels at period's end     31       35       31       35  
Average age of fleet (in years)     5.53       5.83       5.53       5.83  
Ownership days (1)     2,821       3,107       5,508       6,052  
Available days (2)     2,795       3,107       5,452       5,992  
Operating days (3)     2,775       3,092       5,431       5,958  
Fleet utilization (4)     98.4 %     99.5 %     98.6 %     98.4 %
Average number of vessels in the period (5)     31.00       34.14       30.43       33.44  
                                 
AVERAGE DAILY RESULTS                                
Time charter equivalent rate (6)   $ 11,642     $ 8,615     $ 12,753     $ 9,012  
Daily vessel operating expenses (7)   $ 4,455     $ 4,048     $ 4,578     $ 4,449  
Daily general and administrative expenses (8)   $ 1,236     $ 1,087     $ 1,178     $ 1,091  
                                 

_____________

(1) Ownership days represent the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
(2) Available daysrepresent 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.
(3) Operating days represent 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.
(4) 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.
(5) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(6) 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 the period.
(7) 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 by ownership days for the relevant period.
(8) 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 by ownership days for the relevant 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 Bpreferred stock, series Cpreferred 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. The Company's current fleet consists of 36 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire eight additional drybulk newbuild vessels to be delivered at various dates through 2019.

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.

1 Adjusted net income/(loss) is a non-GAAP measure. Adjusted net income/(loss) represents Net income/(loss) before gain on asset purchase cancellation, early redelivery cost, loss from inventory valuation, loss on derivatives and (loss)/gain 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.
3 Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain on asset purchase cancellation, early redelivery cost, loss from inventory valuation, loss on derivatives and (loss)/gain 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 divided by the weighted average number of shares respectively. See Table 1.
5 Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
6 See Table 2.
7 Safety Management Overseas S.A., referred to in this press release as our "Manager".

Contact Information

  • For further information please contact:

    Company Contact:
    Dr. Loukas Barmparis
    President
    Safe Bulkers, Inc.
    Athens, Greece
    Tel.: +30 2 111 888 400
    Fax: +30 2 111 878 500
    E-Mail: directors@safebulkers.com

    Investor Relations / Media Contact:
    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: safebulkers@capitallink.com