UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2019

SAFE BULKERS, INC.
(Translation of registrant’s name into English)

Apt. D11, Les Acanthes 6, Avenue des Citronniers, MC98000 Monaco
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x           Form 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether the registrant by furnishing the information contained in the Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   o           No   x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):








EXHIBIT INDEX


1.  Press Release dated September 3, 2019: Safe Bulkers, Inc. Reports Second Quarter and Six Months 2019 Results.







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: September 4, 2019

 

SAFE BULKERS, INC.

  

  

 

By:

/s/ Konstantinos Adamopoulos

 

Name:

Konstantinos Adamopoulos

 

Title:

Chief Financial Officer








[f090419sb6k002.gif]


Safe Bulkers, Inc. Reports Second Quarter and Six Months 2019 Results


Monaco – September 3, 2019 -- 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 six months period ended June 30, 2019.

Summary of Second Quarter 2019 Results

 

Three-Months Period Ended

June 30,

(In millions except for per share data)

 

2018

2019

%

Net revenues

$

47.0

$

45.5

(3

)%

Net income

 

4.1

 

1.8

(56

)%

Adjusted net income1

 

4.8

 

1.7

(65

)%

EBITDA2

 

22.4

 

21.2

(5

)%

Adjusted EBITDA3

 

23.1

 

21.0

(9

)%

Earnings/(loss) per share basic and diluted4

$

0.01

 

$

(0.01

)

 

Adjusted earnings/(loss) per share basic and diluted4

$

0.02

 

$

(0.01

)

 

Average Daily results in U.S. Dollars

 

Time charter equivalent rate5

$

13,225

$

11,970

(9

)%

Daily vessel operating expenses6

 

4,809

 

4,615

(4

)%

Daily vessel operating expenses excluding dry-docking and pre-delivery expenses7

 

4,392

 

4,283

(2

)%

Daily general and administrative expenses8

 

1,280

 

1,366

7

%


Summary of Six-Months Ended June 30, 2019 Results

 

Six-Months Period Ended

June 30,

(In millions except for per share data)

 

2018

2019

%

Net revenues

$

90.5

$

93.8

4

%

Net income

 

10.1

 

7.2

(29

)%

Adjusted net income

 

10.5

 

7.3

(30

)%

EBITDA

 

45.9

 

45.8

%

Adjusted EBITDA

 

46.3

 

45.9

(1

)%

Earnings per share basic and diluted

$

0.04

 

$

0.01

 

 

Adjusted earnings per share basic and diluted

$

0.05

 

$

0.01

 

 

Average Daily results in U.S. Dollars

 

Time charter equivalent rate

$

12,605

 

12,126

(4

)%

Daily vessel operating expenses

 

4,473

 

4,385

(2

)%

Daily vessel operating expenses excluding dry-docking and pre-delivery expenses

 

4,239

 

4,217

(1

)%

Daily general and administrative expenses

 

1,232

 

1,370

11

%



1 Adjusted Net income is a non-GAAP measure. Adjusted Net income represents Net income before gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency. See Table 5.

2 EBITDA is a non-GAAP measure and represents Net income plus net interest expense, tax, depreciation and amortization. See Table 5.

3 Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency. See Table 5.

4 Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net Income and Adjusted Net income less preferred dividend and revaluation adjustment divided by the weighted average number of shares respectively. See Table 5.

5 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. See Table 6.

6 Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. See Table 6.

7 Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by ownership days for such period. See Table 6.

8 Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. See Table 6.


Management Commentary


Dr. Loukas Barmparis, President of the Company, said: “In the first half of 2019 the charter market was weak with the BDI9 averaging 895. Since then the BDI has risen to an average of 1,904 for the 3rd quarter to date and as a consequence we are now entering into charters at much higher rates. We are on track with our environmental investments and about 25% of our planned scrubber installations were commissioned.”


Chartering our fleet

Our vessels are used to transport bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes. We intend to employ our vessels on both period time charters and spot time charters, according to our assessment of market conditions, with some of the world’s largest consumers of marine drybulk transportation services. The vessels we deploy on period time charters provide us with relatively stable cash flow and high utilization rates, while the vessels we deploy in the spot market allow us to maintain our flexibility in low charter market conditions.

Our contracted employment profile is presented in Table 1. Detailed employment profile is presented in Table 2.


9 Baltic exchange Dry Index

Table 1: Contracted employment profile of fleet ownership days as of August 27, 2019


2019 (remaining)

48%

2019 (full year)

81%

2020

11%

2021

7%



Table 2: Detailed fleet and employment profile as of August 27, 2019


Vessel Name

DWT

Year Built

Country of construction

Daily Gross Charter Rate1

Charter Duration2

Panamax

Maria

76,000

2003

Japan

$11,950

July 2019

September 2019

Koulitsa

76,900

2003

Japan

$10,800

May 2019

January 2020

Paraskevi

74,300

2003

Japan

$14,000

September 2019

September 2019

Vassos

76,000

2004

Japan

$8,376

February 2019

October 2019

Katerina

76,000

2004

Japan

$12,500

August 2019

September 2019

Maritsa

76,000

2005

Japan

$10,325

March 2019

January 2020

Efrossini

75,000

2012

Japan

$14,280

August 2019

October 2019

Zoe

75,000

2013

Japan

$9,475

February 2019

October 2019

Kypros Land

77,100

2014

Japan

$17,750

August 2019

September 2019

Kypros Sea

77,100

2014

Japan

$13,850

May 2019

February 2020

Kypros Bravery

78,000

2015

Japan

$14,200

September 2018

September 2019

Kypros Sky

77,100

2015

Japan

$14,000

May 2019

February 2020

Kypros Loyalty

78,000

2015

Japan

$13,850

March 2019

February 2020

Kypros Spirit

78,000

2016

Japan

$17,208

June 2019

August 2019

Kamsarmax

Pedhoulas Merchant

82,300

2006

Japan

$11,350

March 2019

April 2020

Pedhoulas Trader

82,300

2006

Japan

$12,000

May 2019

March 2020

Pedhoulas Leader

82,300

2007

Japan

$9,694

February 2019

October 2019

Pedhoulas Commander

83,700

2008

Japan

$10,850

April 2019

June 2020

Pedhoulas Builder

81,600

2012

China

$12,650

July 2019

September 2019

Pedhoulas Fighter

81,600

2012

China

$15,900

September 2019

September 2019

Pedhoulas Farmer 3

81,600

2012

China

$15,250

August 2019

August 2019

Pedhoulas Cherry

82,000

2015

China

$16,800

August 2019

August 2019

Pedhoulas Rose 3

82,000

2017

China

$15,481

July 2019

September 2019

Pedhoulas Cedrus

81,800

2018

Japan

$15,400

August 2019

October 2019

Post-Panamax

Marina

87,000

2006

Japan

$12,793

July 2019

August 2019

Xenia

87,000

2006

Japan

$12,500

June 2018

October 2019

Sophia

87,000

2007

Japan

$13,950

August 2019

October 2019

Eleni

87,000

2008

Japan

$11,250

August 2019

August 2019

Martine

87,000

2009

Japan

$13,191

August 2019

October 2019

Andreas K

92,000

2009

South Korea

Dry-Docking

 

 

Panayiota K

92,000

2010

South Korea

$12,500

August 2019

September 2019

Agios Spyridonas

92,000

2010

South Korea

$14,950

August 2019

August 2019

Venus Heritage

95,800

2010

Japan

$14,500

June 2019

August 2019

Venus History

95,800

2011

Japan

$19,000

August 2019

August 2019

Venus Horizon

95,800

2012

Japan

$21,500

September 2019

October 2019

Troodos Sun

85,000

2016

Japan

$19,000

September 2019

September 2019

Troodos Air

85,000

2016

Japan

$12,805

May 2018

September 2019

Capesize

Mount Troodos

181,400

2009

Japan

  $18,000

July 2019

January 2020

Kanaris

178,100

2010

China

$26,5624

September 2011

June 2031

Pelopidas

176,000

2011

China

$38,000

January 2012

January 2022

Lake Despina

181,400

2014

Japan

$24,3765

January 2014

January 2024

Total dwt of existing fleet

3,777,000

 

Orderbook

TBN

85,000

1H 2020

Japan

 

 

 




1.

Charter rate is the recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rate represents the weighted average gross daily charter rate over the duration of the applicable charter period or series of charter periods, as applicable. In case a charter agreement provides for additional payments, namely ballast bonus to compensate for vessel repositioning, the gross daily charter rate presented has been adjusted to reflect estimated vessel repositioning expenses. In case of voyage charters the charter rate represents revenue recognized on a pro-rata basis over the duration of the voyage from load to discharge port less related voyage expenses.

2.

The start date represents either the actual start date or, in the case of a contracted charter that had not commenced as of August 27, 2019, 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.

3.

MV Pedhoulas Farmer and MV Pedhoulas Rose were sold and leased back, in 2015 and 2017, respectively, 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 favour of the Company after the second year of the bareboat charter, at annual intervals and predetermined purchase price.

4.

Charterer agreed to reimburse us for a fixed amount for the cost of the scrubber and BWTS to be installed on the vessel, which is recorded by increasing the recognised daily charter rate by $634 over the remaining tenor of the time charter party.

5.

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.



Liquidity


As of August 27, 2019, we had liquidity of $97.5 million consisting of $86.8 million in cash and bank time deposits and $10.7 million in restricted cash.


Leverage and repayment profile


As of June 30, 2019, our consolidated leverage10, representing total consolidated liabilities divided by total consolidated assets, was 59% compared to 56% as of December 31, 2018, mainly due to prevailing market conditions affecting vessels’ market values.  Repayment schedule is presented in Table 3.


10 Consolidated leverage is a non-GAAP measure and represents total consolidated liabilities divided by total consolidated assets. Total consolidated assets are based on the market value of all vessels (before scrubber installation), owned or leased on a finance lease taking into account their employment, and the book value of all other assets. This measure assists our management and investors by increasing the comparability of our leverage from period to period.


Table 3: Repayment Schedule as of June 30, 2019, on an annual basis

($ in millions)

 

2019

2020

2021

2022

2023

2024

2025

2026

2027

TOTAL

Repayment schedule

18.2

63.3

87.3

85.9

73.1

196.7

32.9

1.3

14.4

573.1



Order book


As of August 27, 2019, the remaining order book of the Company consisted of one Post-Panamax class vessel with scheduled delivery date in the first half of 2020.


Capital expenditure and financing requirements related to order book


As of August 27, 2019, the aggregate remaining capital expenditure in relation to the order book was $30.4 million, of which $7.0 million is payable within 2019 and $23.4 million is payable within 2020. The Company has the option to finance up to $13.2 million of the remaining capital expenditure related to the order book through the periodic issuance of the Company’s common stock.


Environmental Social Responsibility - Environmental investments


In the context of our Environmental Social Responsibility policies the Company is undertaking environmental investments mainly in scrubbers and ballast water treatment systems the progress of which is presented in Table 4. Our environmental investments as of June 30, 2019, were $20.5 million.


Table 4: Environmental investments schedule


 

Completed installations

Until August 31, 2019

Scheduled installations

September 1, 2019 – December 31, 2019

BWTS

15

8

Scrubbers

5*

14


Scrubbers

Q3 19

Q4 19

Q1 20

Scheduled installations

5

9

1

Expected down time in days**

175

315

35


* MV Martine, MV Venus Horizon, MV Venus History, MV Andreas K, MV Pedhoulas Cherry.

** Down time includes scheduled dry-docking or special surveys for 8 vessels to be performed concurrently with their scrubber installation.



Dividend Policy


The Company has not declared a dividend on the Company’s common stock for the second quarter of 2019. The Company had 101,271,137 shares of common stock issued and outstanding as of August 27, 2019.


The Company declared a cash dividend of $0.50 per share on each of its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C) and 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D) for the period from April 30, 2019 to July 29, 2019, which was paid on July 30, 2019 to the respective shareholders of record as of July 23, 2019.


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.

Conference Call


On Wednesday, September 4, 2019 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 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote Safe Bulkers to the operator.


A telephonic replay of the conference call will be available until September 10, 2019, by dialing 1 (866) 331-1332 (US Toll Free Dial In),  0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (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.

Management Discussion of Second Quarter 2019 Results


Net income for the second quarter of 2019 amounted to $1.8 million compared to $4.1 million during the same period in 2018, mainly due to the following factors:


Net revenues: Net revenues decreased by 3% to $45.5 million for the second quarter of 2019, compared to $47.0 million for the same period in 2018, mainly as a result of the decrease in charter rates due to the weak charter market in the first and second quarter. The Company operated 41.00 vessels on average during the second quarter of 2019, earning a Time Charter Equivalent (“TCE”) rate11, representing charter revenues net of commissions and voyage expenses divided by the number of available days, of $11,970, compared to 39.19 vessels and a TCE rate of $13,225 during the same period in 2018.


Vessel operating expenses: Although the average number of vessels increased to 41.00 for the second quarter of 2019, compared to 39.19 vessels for the same period in 2018,  the vessel operating expenses remained almost stable at $17.2 million for the second quarter of 2019 compared to $17.1 million for the same period in 2018, mainly due to a reduction by 9% in maintenance, general stores, and spares costs to $5.3 million for the second quarter of 2019, compared to $5.8 million for the same period in 2018. The decrease in maintenance, general stores and spares in the second quarter of 2019 was mainly due to the completion of one less dry-docking performed for a 15-year old vessel during this quarter compared to the same period in 2018 and the maintenance works performed concurrently to the dry docking. The Company expenses dry-docking and pre-delivery costs as incurred, which costs may vary from period to period.  Excluding dry-docking and pre-delivery costs of $1.2 and $1.5 million for the second quarter of 2019 and 2018, respectively, vessel operating expenses increased by 3% to $16.0 million for the second quarter of 2019, compared to $15.6 million for the same period in 2018. Dry-docking expense is related to the number of dry-dockings in each period and pre-delivery expenses to the number of vessel deliveries and second hand acquisitions in each period. Certain other shipping companies may defer and amortize dry-docking expense and many do not include dry-docking expenses within vessel operating expenses costs and present these separately.


Depreciation: Depreciation increased by 5% to $12.4 million for the second quarter of 2019, compared to $11.8 million for the same period in 2018, as a result of the increase in the average number of vessels in our fleet during the second quarter of 2019.


Interest expense: Interest expense increased to $7.0 million in the second quarter of 2019 compared to $6.5 million for the same period in 2018, as a result of the increased USD LIBOR12 affecting the weighted average interest rate of our loans and credit facilities and as a result of an increase in our weighted average indebtedness.


Voyage expenses: Voyage expenses increased to $2.1 million for the second quarter of 2019 compared to $1.8 million for the same period in 2018, as a result of increased vessel repositioning expenses.


Daily vessel operating expenses13: Daily vessel operating expenses, calculated by dividing the vessel operating expenses by the ownership days of the relevant period, decreased by 4% to $4,615 for the second quarter of 2019 compared to $4,809 for the same period in 2018. Daily vessel operating expenses excluding dry-docking and pre-delivery expenses decreased by 2% to $4,283 for the second quarter of 2019 compared to $4,392 for the same period in 2018.


Daily general and administrative expenses14: Daily general and administrative expenses, which include management fees payable to our Managers15, increased by 7% to $1,366 for the second quarter of 2019, compared to $1,280 for the same period in 2018, mainly due to increased management fees charged by our Managers.



11 See Table 3.

12 London interbank offered rate.

13 See Table 2.

14 See Table 2.

15 Safety Management Overseas S.A. and Safe Bulkers Management Limited, each of which is a related party that is referred to 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 INCOME (UNAUDITED)

(In thousands of U.S. Dollars except for share and per share data)

 

Three-Months Period Ended
June 30,

 

Six-Months Period Ended
June 30,

 

2018

 

2019

 

2018

 

2019

REVENUES:

 

 

 

 

 

 

 

Revenues

49,037

 

 

47,562

 

 

94,389

 

 

98,044

 

Commissions

(2,018

)

 

(2,047

)

 

(3,869

)

 

(4,244

)

Net revenues

47,019

 

 

45,515

 

 

90,520

 

 

93,800

 

EXPENSES:

 

 

 

 

 

 

 

Voyage expenses

(1,802

)

 

(2,110

)

 

(3,307

)

 

(5,083

)

Vessel operating expenses

(17,149

)

 

(17,220

)

 

(31,652

)

 

(32,543

)

Depreciation

(11,785

)

 

(12,426

)

 

(23,386

)

 

(24,706

)

General and administrative expenses

(4,564

)

 

(5,096

)

 

(8,721

)

 

(10,167

)

Early redelivery cost

(70

)

 

 

 

(70

)

 

 

Operating income

11,649

 

 

8,663

 

 

23,384

 

 

21,301

 

OTHER (EXPENSE) / INCOME:

 

 

 

 

 

 

 

Interest expense

(6,488

)

 

(6,979

)

 

(12,274

)

 

(14,008

)

Other finance cost

(414

)

 

(78

)

 

(546

)

 

(117

)

Interest income

218

 

 

399

 

 

432

 

 

821

 

(Loss)/gain on derivatives

(6

)

 

 

 

11

 

 

 

Foreign currency (loss)/gain

(618

)

 

157

 

 

(370

)

 

(82

)

Amortization and write-off of deferred finance charges

(227

)

 

(344

)

 

(569

)

 

(678

)

Net income

4,114

 

 

1,818

 

 

10,068

 

 

7,237

 

Less Preferred dividend

2,780

 

 

2,873

 

 

5,637

 

 

5,745

 

Less Mezzanine equity measurement adjustment

 

 

304

 

 

 

 

304

 

Net income/(loss) available to common shareholders

1,334

 

 

(1,359

)

 

4,431

 

 

1,188

 

Earnings/(loss)  per share basic and diluted

0.01

 

 

(0.01

)

 

0.04

 

 

0.01

 

Weighted average number of shares

101,549,872

 

 

101,262,808

 

 

101,545,325

 

 

101,412,749

 


 

 

Six-Months Period Ended
June 30,

 

 

2018

 

2019

 (In millions of U.S. Dollars)

 

 

 

 

CASH FLOW DATA

 

 

 

 

Net cash provided by operating activities

 

43.1

 

 

24.0

 

Net cash used in investing activities

 

(26.0

)

 

(0.4

)

Net cash used in financing activities

 

(23.3

)

 

(15.7

)

Net (decrease)/increase in cash and cash equivalents

 

(6.2

)

 

7.9

 








SAFE BULKERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands of U.S. Dollars)


 

 

December 31, 2018

 

June 30, 2019

ASSETS

 

 

 

 

Cash, time deposits, and restricted cash

 

82,084

 

 

79,540

 

Other current assets

 

19,178

 

 

24,949

 

Vessels, net

 

955,291

 

 

931,464

 

Advances for vessels

 

8,596

 

 

19,904

 

Restricted cash non-current

 

10,401

 

 

10,701

 

Other non-current assets

 

649

 

 

915

 

Total assets

 

1,076,199

 

 

1,067,473

 

LIABILITIES AND EQUITY

 

 

 

 

Current portion of long-term debt

 

36,185

 

 

45,586

 

Other current liabilities

 

18,421

 

 

16,720

 

Long-term debt, net of current portion

 

538,508

 

 

522,869

 

Other non-current liabilities

 

253

 

 

333

 

Mezzanine equity

 

16,998

 

 

17,302

 

Shareholders’ equity

 

465,834

 

 

464,663

 

Total liabilities and equity

 

1,076,199

 

 

1,067,473

 








TABLE 5

RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER SHARE


 

 

Three-Months Period Ended
June 30,

 

Six-Months Period Ended
June 30,

(In thousands of U.S. Dollars except for share and per share data)

 

2018

 

2019

 

2018

 

2019

Net Income - Adjusted Net Income

 

 

 

 

 

 

 

 

Net Income

 

4,114

 

 

1,818

 

 

10,068

 

 

7,237

 

Less Loss/(gain) on derivatives

 

6

 

 

 

 

(11

)

 

 

Plus Foreign currency loss/(gain)

 

618

 

 

(157

)

 

370

 

 

82

 

Plus Early redelivery cost

 

70

 

 

 

 

70

 

 

 

Adjusted Net income

 

4,808

 

 

1,661

 

 

10,497

 

 

7,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA - Adjusted EBITDA

 

 

 

 

 

 

 

 

Net income

 

4,114

 

 

1,818

 

 

10,068

 

 

7,237

 

Plus Net Interest expense

 

6,270

 

 

6,580

 

 

11,842

 

 

13,187

 

Plus Depreciation

 

11,785

 

 

12,426

 

 

23,386

 

 

24,706

 

Plus Amortization

 

227

 

 

344

 

 

569

 

 

678

 

EBITDA

 

22,396

 

 

21,168

 

 

45,865

 

 

45,808

 

Plus Early Redelivery cost

 

70

 

 

 

 

70

 

 

 

Less Loss/(gain) on derivatives

 

6

 

 

 

 

(11

)

 

 

Plus Foreign currency loss/(gain)

 

618

 

 

(157

)

 

370

 

 

82

 

ADJUSTED EBITDA

 

23,090

 

 

21,011

 

 

46,294

 

 

45,890

 

Earnings/(loss) per share

 

 

 

 

 

 

 

 

Net income

 

4,114

 

 

1,818

 

 

10,068

 

 

7, 237

 

Less Preferred dividend

 

2,780

 

 

2,873

 

 

5,637

 

 

5,745

 

Less Mezzanine equity measurement adjustment

 

 

 

304

 

 

 

 

304

 

Net income/(loss) available to common shareholders

 

1,334

 

 

(1,359

)

 

4,431

 

 

1,188

 

Weighted average number of shares

 

101,549,872

 

 

101,262,808

 

 

101,545,325

 

 

101,412,749

 

Earnings/(loss) per share

 

0.01

 

 

(0.01

)

 

0.04

 

 

0.01

 

Adjusted Earnings/(loss) per share

 

 

 

 

 

 

 

 

Adjusted Net Income

 

4,808

 

 

1,661

 

 

10,497

 

 

7,319

 

Less Preferred dividend

 

2,780

 

 

2,873

 

 

5,637

 

 

5,745

 

Less Mezzanine equity measurement adjustment

 

 

 

304

 

 

 

 

304

 

Adjusted Net income/(loss) available to common shareholders

 

2,028

 

 

(1,516

)

 

4,860

 

 

1,270

 

Weighted average number of shares

 

101,549,872

 

 

101,262,808

 

 

101,545,325

 

 

101,412,749

 

Adjusted Earnings/(loss) per share

 

0.02

 

 

(0.01

)

 

0.05

 

 

0.01

 





EBITDA, Adjusted EBITDA, Adjusted Net income and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP.

- EBITDA represents Net income before interest, income tax expense, depreciation and amortization.

- Adjusted EBITDA represents EBITDA before gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency.

- Adjusted Net income represents Net income before gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency.

- Adjusted earnings/(loss) per share represents Adjusted Net income less preferred and revaluation adjustment dividend divided by the weighted average number of shares.

EBITDA, Adjusted EBITDA, Adjusted Net income and Adjusted earnings/(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 income and Adjusted earnings/(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 gain/(loss) on derivatives, early redelivery cost 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 income generally eliminates the effects of gain/(loss) on derivatives, early redelivery cost 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 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 income 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 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 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 income and Adjusted earnings/(loss) per share should not be construed as an inference that our future results will be unaffected by the excluded items.








TABLE 6: FLEET DATA AND AVERAGE DAILY INDICATORS


 

Three-Months Period Ended
June 30,

 

Six-Months Period Ended
June 30,

 

2018

 

2019

 

2018

 

2019

FLEET DATA

 

 

 

 

 

 

 

Number of vessels at period’s end

40

 

 

41

 

 

40

 

 

41

 

Average age of fleet (in years)

7.81

 

 

8.83

 

 

7.81

 

 

8.83

 

Ownership days (1)

3,566

 

 

3,731

 

 

7,076

 

 

7,421

 

Available days (2)

3,419

 

 

3,626

 

 

6,919

 

 

7,316

 

Operating days (3)

3,381

 

 

3,516

 

 

6,805

 

 

7,158

 

Fleet utilization on ownership days (4)

94.8

%

 

94.2

%

 

96.2

%

 

96.5

%

Fleet utilization on available days (5)

98.9

%

 

97.0

%

 

98.4

%

 

97.8

%

Average number of vessels in the period (6)

39.19

 

 

41.00

 

 

39.09

 

 

41.00

 

AVERAGE DAILY RESULTS

 

 

 

 

 

 

 

Time charter equivalent rate (7)

$

13,225

 

 

$

11,970

 

 

$

12,605

 

 

$

12,126

 

Daily vessel operating expenses (8)

$

4,809

 

 

$

4,615

 

 

$

4,473

 

 

$

4,385

 

Daily vessel operating expenses excluding dry-docking and pre-delivery expenses (9)

$

4,392

 

 

$

4,283

 

 

$

4,221

 

 

$

4,217

 

Daily general and administrative expenses (10)

$

1,280

 

 

$

1,366

 

 

$

1,232

 

 

$

1,370

 

TIME CHARTER EQUIVALENT RATE RECONCILIATION

 

 

 

 

 

 

 

(In thousands of U.S. Dollars except for available days and Time charter equivalent rate)

 

 

 

 

 

 

 

Revenues

$

49,037

 

 

$

47,562

 

 

$

94,389

 

 

$

98,044

 

Less commissions

(2,018

)

 

(2,047

)

 

(3,869

)

 

(4,244

)

Less voyage expenses

(1,802

)

 

(2,110

)

 

(3,307

)

 

(5,083

)

Time charter equivalent revenue

$

45,217

 

 

$

43,405

 

 

$

87,213

 

 

$

88,717

 

Available days (2)

3,419

 

 

3,626

 

6,919

 

 

7,316

 

Time charter equivalent rate (7)

$

13,225

 

 

$

11,970

 

 

$

12,605

 

 

$

12,126

 


__________

(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 on ownership days is calculated by dividing the number of operating days by the number of ownership days for the relevant period, representing a shipping industry performance measure. This measure demonstrates the percentage of time in the relevant period our vessels generate revenue.

(5)

Fleet utilization on available days  is calculated by dividing the number of operating days by the number of available days during the same  period representing a shipping industry performance measure used to measure the ability of the Company to find suitable employment for its vessels and minimize the off- hire days for reasons other than  scheduled maintenance, repairs, dry-dockings, vessel upgrades and special or intermediate surveys.

(6)

Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.

(7)

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. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on period time charters and spot time charters with daily earnings generated by vessels on voyage charters, because charter rates for vessels on voyage charters are generally not expressed in per day amounts, while charter rates for vessels on period time charters and spot time charters generally are expressed in such amounts. We have only rarely employed our vessels on voyage charters and, as a result, generally our TCE rates approximate our time charter rates.

(8)

Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. Vessel operating expenses include crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance including dry-docking, statutory and classification expenses and other miscellaneous items.

(9)

Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by ownership days for such period. Dry-docking expenses include costs of shipyard, paints and agent expenses and pre-delivery expenses include initially supplied spare parts, stores, provisions and other miscellaneous items provided to a newbuild or second hand acquisition prior to their operation.

(10)

Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. Daily general and administrative expenses include daily management fees payable to our Managers and daily company administration expenses.







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 C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols “SB”, “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 1934, as amended, and in Section 21E of the Securities Act of 1933, 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.

For further information please contact:

Company Contact:

Dr. Loukas Barmparis

President

Safe Bulkers, Inc.

Tel.: +30 21 11888400

+357 25 887200

E-Mail:directors@safebulkers.com



Investor Relations / Media Contact:

Nicolas Bornozis, President

Capital Link, Inc.

230 Park Avenue, Suite 1536

New York, N.Y. 10169

Tel.: (212) 661-7566

Fax: (212) 661-7526

E-Mail:safebulkers@capitallink.com