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• EBITDA2 was $28.4 million in the fourth quarter of 2009, an increase of 56% from $18.2 million in the fourth quarter of 2008, mainly due to higher net income. • A dividend of $0.15 per share was declared for the fourth quarter of 2009. See “Dividend Declaration” below. Summary of Full Year 2009 Results • Net revenue for the year ended December 31, 2009 decreased by 18% to $164.6 million from $200.8 million for the year ended December 31, 2008. The Company operated 13.20 vessels on average during the year ended December 31, 2009, earning a TCE rate of $34,208, compared to an average of 11.13 vessels and a TCE rate of $49,626 during the year ended December 31, 2008. The decrease in the TCE rate is mainly a result of lower period time charter rates earned during the year ended December 31, 2009, including lower period time charter rates associated with vessels subject to early redelivery which entered into new charter contracts with lower rates compared to those previously contracted. • Net income was $165.4 million, or earnings per share of $3.03, for the year ended December 31, 2009 compared to $119.2 million, or earnings per share of $2.19, for the year ended December 31, 2008. The increase in net income of $46.2 million reflects mainly: (i) net revenue of $164.6 million compared to $200.8 million, (ii) early redelivery income of $75.0 million compared to early redelivery cost of $0.6 million, (iii) loss on asset cancellations of $20.7 million compared to none, (iv) loss on derivatives of $4.4 million compared to $19.5 million, (v) foreign currency gain of $0.8 million compared to foreign currency loss of $9.5 million and (vi) interest expense of $10.3 million compared to $16.4 million, for the years ended December 31, 2009 and 2008, respectively. • EBITDA was $187.6 million for the year ended December 31, 2009, an increase of 29% from $144.9 million for the year ended December 31, 2008. Dividend Declaration The Company declared a cash dividend on its common stock of $0.15 per share payable on or about February 26, 2010 to shareholders of record at the close of trading of the Company’s common stock on the New York Stock Exchange (“NYSE”) on February 19, 2010. The Company had 54,514,643 shares of common stock 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) our ability to obtain debt and equity financing on acceptable terms as contemplated by our growth strategy, (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. Fleet and Employment Profile • The Company’s operational fleet comprised of 13 drybulk vessels with an average age of 3.64 years as of January 31, 2010. The Company has also contracted for six additional drybulk newbuild vessels with deliveries scheduled through 2012. • As of January 31, 2010, the contracted employment of the Company’s fleet under period time charters was as follows: 86% of fleet ownership days for the remaining days of 2010, 59% for 2011 and 51% for 2012. This includes all vessels which will be delivered to us through 2012. • On January 7, 2010, the Company sold and delivered to third party buyers its oldest Panamax-class drybulk vessel, Efrossini, built in 2003, and received sale proceeds of $33.0 million, all of which was applied to retire the $34.5 million debt outstanding associated with the vessel. Management Commentary Polys Hajioannou, Chairman of the Board of Directors and Chief Executive Officer of the Company said: “In what we believe was one of the worst years in the global economy, we managed to considerably increase the annual earnings per share to $3.03, strengthen our balance sheet and maintain our dividend of $0.15 per share for the quarter ended December 31, 2009. In parallel we continue to maintain a high charter coverage ratio and continue to implement our strategy of selective fleet expansion.” Management Discussion of Fourth Quarter 2009 Results Net income increased by 95% to $23.2 million for the fourth quarter of 2009 from $11.9 million for the fourth quarter of 2008. This increase is attributable to the following factors: Net revenues: Net revenues were $36.6 million for the fourth quarter of 2009, a 21% decrease compared to $46.6 million for the fourth quarter of 2008. The decrease in revenues resulted mainly from lower charter rates earned during the fourth quarter of 2009. Vessel operating expenses: Vessel operating expenses increased by 4% to $5.2 million for the fourth quarter of 2009, compared to $5.0 million for the same period in 2008, mainly due to an increase in ownership days. Daily vessel operating expenses decreased by 14% to $4,053 for the fourth quarter 2009, compared to $4,722 for the fourth quarter of 2008. The decrease in daily operating expenses is mainly attributed to a decrease in repairs and maintenance, including drydocking costs, general stores and insurance costs. Interest expense: Interest expense decreased to $1.5 million in the fourth quarter of 2009 from $4.0 million for the same period in 2008, notwithstanding the increase in weighted average indebtedness. The decrease in interest expense is attributable to a lower weighted average annual interest rate of 1.263% p.a. in the fourth quarter of 2009, as compared to 3.749% p.a. in the fourth quarter of 2008. The weighted average of loans outstanding during the fourth quarter of 2009 amounted to $472.1 million, compared to $450.2 million during the fourth quarter of 2008. Loss on derivatives: Loss on derivatives decreased to $1.2 million for the fourth quarter of 2009, compared to a loss of $21.0 million for the same period in 2008, as a result of the mark-to-market valuation of the Company’s interest rate swap transactions, which were transacted to manage the risk and interest rate exposure of our loan and credit facilities. At the end of 2009, the aggregate notional amount of interest rate swap transactions outstanding was $452.5 million, compared to $445.2 million at the end of 2008. These swaps economically hedged the interest rate exposure of approximately 96% of the Company’s aggregate loans outstanding as of December 31, 2009. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time. Cash, time deposits, restricted cash and investments: As of December 31, 2009, we had $82.7 million in cash, short-term time deposits and short-term restricted cash, $4.8 million in long-term restricted cash and $50.0 million in a long-term floating rate note. About Safe Bulkers, Inc. The Company’s subsidiaries provide 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 such services. The Company’s common stock is listed on the NYSE where it trades under the symbol “SB”. The Company’s subsidiaries currently own 13 drybulk vessels, all built post-2003, and have contracted to acquire six additional drybulk newbuild vessels to be delivered at various times through 2012. _______________________ (1) Refer to the definition of “TCE” in Note 6 of the Fleet Data Table. (2) EBITDA represents net income plus net interest expense, income tax, depreciation and amortization. See “EBITDA Reconciliation”. Safe Bulkers, Inc. |
Safe Bulkers, Inc. Reports Fourth Quarter and Full Year 2009 Results and Declares
Quarterly Dividend of $0.15 per Share