Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced its unaudited financial results for the quarter ended March 31, 2012. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the first quarter of 2012. Summary of First Quarter 2012 Results • Net revenue for the first quarter of 2012 increased by 4% to $44.1 million from $42.3 million during the same period in 2011.
• Net income for the first quarter of 2012 decreased by 21% to $21.6 million from $27.3 million, during the same period in 2011. Adjusted net income(1) for the first quarter of 2012 decreased by 16% to $22.9 million from $27.4 million, during the same period in 2011.
• EBITDA(2) for the first quarter of 2012 decreased by 11% to $30.7 million from $34.4 million during the same period in 2011. Adjusted EBITDA(1) for the first quarter of 2012 decreased by 7% to $31.9 million from $34.5 million during the same period in 2011.
• Earnings per share ("EPS") and Adjusted EPS(1) for the first quarter of 2012 of $0.30 and $0.32 respectively, calculated on a weighted average number of shares of 71,868,950, compared to $0.41 and $0.42 in the first quarter 2011, calculated on a weighted average number of shares of 65,881,600.
• The Company's Board of Directors declared a dividend of $0.15 per share for the first quarter of 2012.
Fleet and Employment Profile
As of May 4, 2012, the Company's operational fleet was comprised of 20 drybulk vessels with an average age of 4.2 years and the Company had contracted to acquire nine newbuild drybulk vessels with deliveries scheduled at various times through 2014.
Capital Expenditure Requirements and Liquidity
As of May 4, 2012, the remaining capital expenditure requirements to shipyards or sellers, net of commissions for the delivery of the nine newbuilds, amounted to $236.8 million, of which $98.4 million is scheduled to be paid in 2012, $59.6 million in 2013 and $78.8 million in 2014.
As of May 4, 2012, the Company had $59.1 million in cash and short term time deposits, $5.4 million in long term restricted cash, and estimated aggregate borrowing capacity of $179.6 million, consisting of $38.0 million available in undrawn or committed loan facilities, $101.6 million available under existing revolving credit facilities and $40.0 million undrawn availability against our $50.0 million floating rate note.
Additionally, the Company has the operational cash flow supported by our contracted period time charters and the possibility to borrow additional amounts secured by one or more of the seven debt-free newbuild vessels, upon their delivery to us.
Dividend Declaration
The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.15 per share payable on or about May 31, 2012 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on May 23, 2012.
The Company has 76,651,416 shares of common stock issued and outstanding as of May 8, 2012.
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 available sources of liquidity, (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. Dividends might not be paid in the future.
Additional Offering
During March 2012, the Company consummated an underwritten public equity offering of 5,750,000 shares of common stock, which was priced at $6.50 per share to the public.
The total net proceeds to the Company from the offering, after deducting the underwriting discount and estimated offering expenses, were $35.3 million.
The Company plans to use the net proceeds of this offering for vessel acquisitions, capital expenditures and other general corporate purposes, which may include repayment of indebtedness.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "Our Board of Directors has declared our sixteenth consecutive dividend since our IPO, continuing our policy to pay out a portion of the Company's free cash flow, while we reserve remaining free cash flow to finance our future development. Our financial position is supported by our charter coverage. In addition to our existing newbuild program, we may continue to expand or renew our current fleet by taking advantage of attractive vessel acquisition opportunities. Our newbuild strategy focuses on vessels with new, energy-efficient designs by leading shipyards that will comply with upcoming regulations and incorporate the latest technological and environmental advancements."
Source: Safe Bulkers Inc.