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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
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. 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

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1. Ownership days represents the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
2. 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.
3. 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.
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 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.
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 for the relevant period by ownership days for such 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 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.