Dryships Inc. Reports Financial and Operating Results for the First Quarter Of 2018
Athens, Greece - May 8, 2018
DryShips Inc. (NASDAQ:DRYS) (“DryShips” or the “Company”), a diversified owner and operator of ocean going cargo vessels, today announced its unaudited financial and operating results for the quarter ended March 31, 2018.
First Quarter 2018 Financial Highlights
• For the first quarter of 2018, the Company reported a net income of $0.8 million, or $0.01 basic and diluted earnings per share.
• The Company reported Adjusted EBITDA of $12.9 million for the first quarter of 2018. (1) Updated Key Information as of May 7, 2018
• Cash and cash equivalents: approximately $107.1 million (or $1.06 per share)
• Book value of vessels: approximately $817.3 million (or $8.06 per share)
• Debt outstanding balance: approximately $296.8 million (or $2.93 per share)
• Number of Shares Outstanding: 101,458,263
$50.0 million Common Stock Repurchase Program
As of May 8, 2018, the Company has repurchased a total of 2,816,445 shares of its common stock for an aggregate amount of $11.3 million, including commissions, pursuant to its previously announced stock repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common stock until February 28, 2019. The current number of the Company’s outstanding common stock is 101,458,263.
Dividend for the quarter ended March 31, 2018
On May 7, 2018, the Company’s Board of Directors in accordance with its previously announced dividend policy, declared a quarterly cash dividend with respect to the quarter ended March 31, 2018. With respect to the quarter ended March 31, 2018, the Company’s Board of Directors declared a cash dividend of an aggregate $2.5 million payable on or about June 11, 2018 to common shareholders of record as of May 25, 2018. The dividend per share amount to be paid by the Company, based on the Company’s 101,458,263 common shares outstanding as of May 8, 2018, would be approximately 2.5 cents per share.
2018 Annual General Meeting of Shareholders
On May 7, 2018, the Company’s Board of Directors resolved that the Company’s 2018 Annual General Meeting of Shareholders (the “Annual Meeting”) will be held at the Company’s offices located at 109 Kifisias Avenue & Sina Street, GR 151 24, Marousi, Athens, Greece on Monday, July 16, 2018 at 4:00 p.m., local time. The Company’s Board of Directors fixed the close of business on Monday, June 4, 2018 as the record date for the determination of the shareholders entitled to receive notice and to vote at the Annual Meeting or any adjournments or postponements thereof. Formal notice of the Annual Meeting and the Company’s proxy statement are expected to be sent to shareholders on or before Monday, June 25, 2018.
New Finance Lease Arrangements
On May 4, 2018, the Company entered into finance lease arrangements with a major Chinese leasing company for the Company's three Newcastlemax drybulk vessels, Marini, Morandi and Bacon and two Kamsarmax drybulk vessels, Castellani and Nasaka, pursuant to five memoranda of agreement and bareboat charter agreements. The financing provide for the transfer of the five drybulk vessels to the buyer for 50% of the agreed aggregate purchase price of $164.0 million and as part of the agreements, the Company's whollyowned subsidiaries to bareboat charter each vessel back for a period of eight years (expiry in May 2026). Charterhire under the bareboat agreements is comprised of a fixed, quarterly repayment amount corresponding to a 15-year amortization profile plus a variable component calculated at LIBOR plus margin. The Company has purchase options to reacquire each vessel during each bareboat charter period, with the first of such options exercisable on the first anniversary of each vessel's delivery date. There is also a purchase obligation upon the expiration of each bareboat agreement for 46.67% of the financing amount. The Company is a guarantor under the bareboat agreements, which also include customary terms, conditions and financial covenants. The vessels are expected to be delivered and leased back to the Company during May 2018.
On April 27, 2018, the Company entered into a memorandum of agreement for the sale of its 2001 built Panamax vessel, the Maganari, to an unaffiliated buyer for total gross proceeds of $9.7 million. The vessel is scheduled for delivery to the buyer by end of May 2018.
Finance Lease Arrangement
On April 2, 2018, the Company entered into a finance lease arrangement with a major Chinese leasing company for the Company's Kamsarmax drybulk vessel, the Kelly, pursuant to a memorandum of agreement and a bareboat charter agreement. The financing provided for the transfer of the Kelly to the buyer for 50% of the agreed purchase price, which was calculated as the lower of (a) the vessel's net book value as of June 30, 2017 and (b) the vessel's fair value close to the delivery date, and as part of the agreement, the Company's wholly-owned subsidiary bareboat chartered the vessel back for a period of ten years (expiry in April 2028). Charterhire under the bareboat arrangement is comprised of a fixed, quarterly repayment amount corresponding to a 15-year amortization profile plus a variable component calculated at LIBOR plus margin. The Company has purchase options to re-acquire the vessel during the bareboat charter period, with the first of such options exercisable on the first anniversary from the vessel's delivery date. There is also a purchase obligation upon the expiration of the agreement for 33% of the financing amount. The Company is a guarantor under the bareboat charter, which also includes customary terms, conditions and financial covenants. On April 13, 2018, the vessel was delivered and leased back to the Company, and the Company also drew down the full financing amount of $13.1 million.
(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income/ (loss).
About DryShips Inc.
The Company is a diversified owner and operator of ocean going cargo vessels that operate worldwide. As of May 8, 2018, the Company operates a fleet of 35 vessels comprising of (i) 12 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; 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.
DryShips Inc. press release