Safe Bulkers, Inc. Reports Fourth Quarter and Full Year 2010 Results and Declares Quarterly Dividend
News Release
Safe Bulkers, Inc.
February 10, 2011
Athens, Greece – February 9, 2011 -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today its
unaudited financial results for the fourth quarter and the year ended December 31, 2010. The Company also declared a quarterly dividend of $0.15 per share for the fourth quarter of 2010.
Summary of Fourth Quarter 2010 Results
• Net revenue for the fourth quarter of 2010 increased by 13% to $41.3 million from $36.6 million during the same period in 2009.
• Net income for the fourth quarter of 2010 increased by 34% to $31.1 million from $23.2 million during the same period in 2009.
• EBITDA1 for the fourth quarter of 2010 increased by 33% to $37.9 million from $28.4 million during the same period in 2009.
• Earnings per share for the fourth quarter of 2010 of $0.47, calculated on a weighted average number of shares of 65,878,212, compared to $0.42 in the fourth quarter 2009,
calculated on a weighted average number of shares of 54,513,787.
• Declaration of a dividend of $0.15 per share for the fourth quarter of 2010.
Summary of Twelve Months Ended December 31, 2010 Results
• Net revenue for the twelve months ended December 31, 2010 decreased by 5% to $157.0 million from $164.6 million during the same period in 2009.
• Net income for the twelve months ended December 31, 2010 decreased by 34% to $109.6 million from $165.4 million during the same period in 2009.
• EBITDA for the twelve months ended December 31, 2010 decreased by 29% to $133.4 million from $187.6 million during the same period in 2009.
1 EBITDA represents net income plus interest expense, tax, depreciation and amortization. See "EBITDA Reconciliation".
2
• Earnings per share for the twelve months ended December 31, 2010 of $1.73, calculated on a weighted average number of shares of 63,300,466 compared to $3.03 in the twelve
months ended December 31, 2009, calculated on a weighted average number of shares of 54,510,587.
Fleet and Employment Profile
The Company’s operational fleet as of December 31, 2010, was comprised of 16 drybulk vessels with an average age of 3.80 years.
As of December 31, 2010, the Company has contracted for eight additional drybulk newbuild vessels with deliveries scheduled at various times through 2013. The newbuilds
consist of two Post-Panamax, three Kamsarmax, one Panamax and two Capesize vessels.
As of December 31, 2010, the remaining capital expenditure requirements for the delivery of the eight newbuilds, were $171.1 million for 2011, $70.4 million for 2012 and $22.2 for 2013. We anticipate satisfying these capital expenditure requirements from existing cash
and time deposits, operating cash surplus and existing undrawn loan commitments.
On January 11, 2011, we contracted to acquire a Japanese-built, drybulk, Panamax-class newbuild at approximately $41.8 million, consisting of payments of $18.9 million and JP¥ 1.9 billion, with an expected delivery date in the first quarter of 2012.
As of January 31, 2011, the company has 1 existing and 8 newbuild vessels unencumbered
and a $50 million long-term floating rate note facility against which additional loans can be drawn.
As of January 31, 2011, the contracted employment of the Company’s fleet was 78% of fleet ownership days for the remaining days of 2011, 59% for 2012 and 54% for 2013,
including vessels which are scheduled to be delivered to us in the future.
Dividend Declaration
The Company declared a cash dividend on its common stock of $0.15 per share payable on or about February 25, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the “NYSE”) on February 18,
2011.
The Company had 65,879,916 shares of common stock issued and outstanding as of today.
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) our earnings, financial condition and cash requirements and availability, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of
dividends, (iv) restrictive covenants in our existing and future debt instruments and (v)
global financial conditions. We can give no assurance that dividends will be paid in the future.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: “We are happy to announce today
our unaudited financial results for the quarter and year ended December 31, 2010. Our
revenues increased for the second consecutive quarter, supported by long term charters with
our clients. Our Board has maintained a stable dividend policy by paying out a low
percentage of free cash flows and declaring our eleventh consecutive quarterly dividend, of
$0.15 per share, since our initial public offering in 2008. Our selective fleet expansion at
attractive prices, funded to a large extent from operational surplus, will support our future
revenues as newbuilds enter our fleet. We remain committed to the solid growth of our
company, through flexible asset management and consistent chartering policy, for the
benefit of our shareholders.’’
Conference Call
On Thursday, February 10, 2011 at 9:00 A.M. EST, 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 February 18, 2011 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.
unaudited financial results for the fourth quarter and the year ended December 31, 2010. The Company also declared a quarterly dividend of $0.15 per share for the fourth quarter of 2010.
Summary of Fourth Quarter 2010 Results
• Net revenue for the fourth quarter of 2010 increased by 13% to $41.3 million from $36.6 million during the same period in 2009.
• Net income for the fourth quarter of 2010 increased by 34% to $31.1 million from $23.2 million during the same period in 2009.
• EBITDA1 for the fourth quarter of 2010 increased by 33% to $37.9 million from $28.4 million during the same period in 2009.
• Earnings per share for the fourth quarter of 2010 of $0.47, calculated on a weighted average number of shares of 65,878,212, compared to $0.42 in the fourth quarter 2009,
calculated on a weighted average number of shares of 54,513,787.
• Declaration of a dividend of $0.15 per share for the fourth quarter of 2010.
Summary of Twelve Months Ended December 31, 2010 Results
• Net revenue for the twelve months ended December 31, 2010 decreased by 5% to $157.0 million from $164.6 million during the same period in 2009.
• Net income for the twelve months ended December 31, 2010 decreased by 34% to $109.6 million from $165.4 million during the same period in 2009.
• EBITDA for the twelve months ended December 31, 2010 decreased by 29% to $133.4 million from $187.6 million during the same period in 2009.
1 EBITDA represents net income plus interest expense, tax, depreciation and amortization. See "EBITDA Reconciliation".
2
• Earnings per share for the twelve months ended December 31, 2010 of $1.73, calculated on a weighted average number of shares of 63,300,466 compared to $3.03 in the twelve
months ended December 31, 2009, calculated on a weighted average number of shares of 54,510,587.
Fleet and Employment Profile
The Company’s operational fleet as of December 31, 2010, was comprised of 16 drybulk vessels with an average age of 3.80 years.
As of December 31, 2010, the Company has contracted for eight additional drybulk newbuild vessels with deliveries scheduled at various times through 2013. The newbuilds
consist of two Post-Panamax, three Kamsarmax, one Panamax and two Capesize vessels.
As of December 31, 2010, the remaining capital expenditure requirements for the delivery of the eight newbuilds, were $171.1 million for 2011, $70.4 million for 2012 and $22.2 for 2013. We anticipate satisfying these capital expenditure requirements from existing cash
and time deposits, operating cash surplus and existing undrawn loan commitments.
On January 11, 2011, we contracted to acquire a Japanese-built, drybulk, Panamax-class newbuild at approximately $41.8 million, consisting of payments of $18.9 million and JP¥ 1.9 billion, with an expected delivery date in the first quarter of 2012.
As of January 31, 2011, the company has 1 existing and 8 newbuild vessels unencumbered
and a $50 million long-term floating rate note facility against which additional loans can be drawn.
As of January 31, 2011, the contracted employment of the Company’s fleet was 78% of fleet ownership days for the remaining days of 2011, 59% for 2012 and 54% for 2013,
including vessels which are scheduled to be delivered to us in the future.
Dividend Declaration
The Company declared a cash dividend on its common stock of $0.15 per share payable on or about February 25, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the “NYSE”) on February 18,
2011.
The Company had 65,879,916 shares of common stock issued and outstanding as of today.
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) our earnings, financial condition and cash requirements and availability, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of
dividends, (iv) restrictive covenants in our existing and future debt instruments and (v)
global financial conditions. We can give no assurance that dividends will be paid in the future.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: “We are happy to announce today
our unaudited financial results for the quarter and year ended December 31, 2010. Our
revenues increased for the second consecutive quarter, supported by long term charters with
our clients. Our Board has maintained a stable dividend policy by paying out a low
percentage of free cash flows and declaring our eleventh consecutive quarterly dividend, of
$0.15 per share, since our initial public offering in 2008. Our selective fleet expansion at
attractive prices, funded to a large extent from operational surplus, will support our future
revenues as newbuilds enter our fleet. We remain committed to the solid growth of our
company, through flexible asset management and consistent chartering policy, for the
benefit of our shareholders.’’
Conference Call
On Thursday, February 10, 2011 at 9:00 A.M. EST, 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 February 18, 2011 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.