Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2013 Results and Declares Quarterly Dividend on Common Stock

Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2013 Results and 
Declares Quarterly Dividend on Common Stock 
ATHENS, GREECE -- (Marketwired) -- 11/04/13 --  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 nine-months period ended
September 30, 2013. The Board of Directors of the Company also
declared a quarterly dividend of $0.06 per share of common stock for
the third quarter of 2013. 
Summary of Third Quarter 2013 Results 


 
--  Net revenue for the third quarter of 2013 decreased by 10% to $41.9
    million from $46.8 million during the same period in 2012.
--  Net income for the third quarter of 2013 decreased by 44% to $11.6
    million from $20.7 million, during the same period in 2012. Adjusted
    net income(1) for the third quarter of 2013 decreased by 43% to $13.1
    million from $22.8 million, during the same period in 2012.
--  EBITDA(2) for the third quarter of 2013 decreased by 25% to $23.4
    million from $31.4 million during the same period in 2012. Adjusted
    EBITDA(1) for the third quarter of 2013 decreased by 26% to $24.8
    million from $33.4 million during the same period in 2012.
--  Earnings per share ("EPS") and Adjusted EPS(1) for the third quarter
    of 2013 were $0.14 and $0.16 respectively, calculated on a weighted
    average number of shares of 76,684,316, compared to $0.27 and $0.30 in
    the third quarter 2012, calculated on a weighted average number of
    shares of 76,658,865.
--  The Board of Directors of the Company declared a dividend of $0.06 per
    share of common stock for the third quarter of 2013.

  
Summary of Nine Months Ended September 30, 2013 Results 


 
--  Net revenue for the first nine months of 2013 decreased by 8% to
    $127.5 million from $138.0 million during the same period in 2012.
--  Net income for the first nine months of 2013 decreased by 18% to $52.2
    million from $63.9 million. Adjusted net income(1) for the first nine
    months of 2013 decreased by 36% to $44.1 million from $69.3 million,
    during the same period in 2012.
--  EBITDA(2) for the first nine months of 2013 decreased by 7% to $87.0
    million from $93.7 million during the same period in 2012. Adjusted
    EBITDA(1) for the first nine months of 2013 decreased by 20% to $78.9
    million from $99.1 million during the same period in 2012.
--  EPS and Adjusted EPS(1) for the first nine months of 2013 were $0.67
    and $0.56, respectively, calculated on a weighted average number of
    shares of 76,679,082, compared to $0.85 and $0.92 in the first nine
    months of 2012, calculated on a weighted average number of shares of
    75,066,388.

  
Fleet and Employment Profile 
In July 2013, the Company took delivery of the Zoe, (Hull No. 814), a
75,000 dwt, Japanese, newbuild, Panamax class vessel, for a purchase
price of $29.5 million. 
In July 2013, the Company took delivery of the Xenia, a 2006 Japanese
built 87,000 dwt, post- Panamax class vessel, for a purchase price of
$19.5 million. 
In September 2013, the Company entered into an agreement with a
Japanese shipyard for the construction of an eco-design, 76,500 dwt,
Panamax class vessel at a price of $28 million, scheduled to be
delivered during the first half of 2015. Upon delivery from the
shipyard the vessel is expected to be employed under a period time
charter, for a total duration of ten years at a net daily charter
rate of $15,800 for the first five years, and $15,000 for the second
five years. The Company also holds the option, upon completion of the
first five years of the time charter, to terminate the time charter
and sell the vessel.  
In October 2013, the Company entered into shipbuilding contracts with
a Japanese shipyard, for the construction of two eco-design, 77,000
dwt, Panamax class vessels at a price of $30.0 million and $30.2
million. The first vessel is scheduled for delivery during the second
half of 2015 and the second vessel is scheduled for delivery during
the first half of 2016. 
As of November 1, 2013, the Company's operational fleet was comprised
of 28 drybulk vessels with an average age of 5.4 years and an
aggregate carrying capacity of 2.5 million dwt. The fleet consists of
eight Panamax class vessels, seven Kamsarmax class vessels, eleven
post- Panamax class vessels and two Capesize class vessels, all built
2003 onwards. 
As of November 1, 2013, the Company had contracted to acquire ten
additional drybulk newbuild vessels, with deliveries scheduled at
various dates through 2016. The orderbook consists of seven Panamax
class vessels, two Post-Panamax class vessels and one Capesize class
vessel. 
Set out below is a table showing the Company's existing and newbuild
vessels and their contracted employment as of November 1, 2013: 


 
-----------------------------------------------------------------
-----------
                                  Country of   Charter                      
  Vessel Name    DWT      Year   construction Rate (2)  Charter Duration (3)
                       Built (1)               USD/day                      
----------------------------------------------------------------------------
                                CURRENT FLEET                               
----------------------------------------------------------------------------
Panamax                                                                     
----------------------------------------------------------------------------
Maria           76,000    2003       Japan     10,500   Aug 2013 - Nov 2013 
----------------------------------------------------------------------------
Koulitsa        76,900    2003       Japan     18,400   Oct 2013 - Dec 2013 
----------------------------------------------------------------------------
Paraskevi       74,300    2003       Japan      8,650   Aug 2013 - Jul 2014 
----------------------------------------------------------------------------
Vassos          76,000    2004       Japan                                  
----------------------------------------------------------------------------
Katerina        76,000    2004       Japan      9,500   May 2013 - Nov 2013 
----------------------------------------------------------------------------
Maritsa         76,000    2005       Japan   27,649 (4) Mar 2013 - Jan 2015 
----------------------------------------------------------------------------
Efrossini       75,000    2012       Japan     13,000   Nov 2013 - Dec 2013 
----------------------------------------------------------------------------
                                               15,000   Sep 2013 - Nov 2013 
Zoe             75,000    2013       Japan     10,000   Nov 2013 - Mar 2014 
----------------------------------------------------------------------------
Kamsarmax                                                                   
----------------------------------------------------------------------------
Pedhoulas                                    BPI + 9.5%                     
Merchant        82,300    2006       Japan       (5)    Jul 2013 - Jun 2015 
----------------------------------------------------------------------------
Pedhoulas                                    BPI + 6.5%                     
Trader          82,300    2006       Japan       (6)    Aug 2013 - Aug 2015 
----------------------------------------------------------------------------
Pedhoulas                                                                   
Leader          82,300    2007       Japan     13,250   Jun 2012 - May 2014 
----------------------------------------------------------------------------
Pedhoulas                                                                   
Commander       83,700    2008       Japan     10,750   Sep 2013 - Jul 2014 
----------------------------------------------------------------------------
Pedhoulas                                                                   
Builder         81,600    2012       China      8,450   Oct 2012 - Apr 2014 
----------------------------------------------------------------------------
Pedhoulas                                                                   
Fighter         81,600    2012       China     11,500   Sep 2013 - Jun 2014 
----------------------------------------------------------------------------
Pedhoulas                                                                   
Farmer          81,600    2012       China      8,000   Sep 2012 - Apr 2014 
----------------------------------------------------------------------------
Post-Panamax                                                                
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Stalo           87,000    2006       Japan     34,160   Mar 2010 - Feb 2015 
----------------------------------------------------------------------------
Marina          87,000    2006       Japan     41,557   Dec 2008 - Dec 2013 
----------------------------------------------------------------------------
Xenia           87,000    2006       Japan     13,000   Nov 2013 - Jan 2014 
----------------------------------------------------------------------------
Sophia          87,000    2007       Japan     19,750   Sep 2013 - Nov 2013 
----------------------------------------------------------------------------
Eleni           87,000    2008       Japan     41,738   Apr 2010 - Mar 2015 
----------------------------------------------------------------------------
Martine         87,000    2009       Japan     15,300   Sep 2013 - Nov 2013 
----------------------------------------------------------------------------
Andreas K       92,000    2009    South Korea  10,000   Dec 2012 - Feb 2014 
----------------------------------------------------------------------------
Panayiota K     92,000    2010    South Korea  12,750   Sep 2013 - Feb 2014 
----------------------------------------------------------------------------
Venus Heritage  95,800    2010       Japan     10,000   Jul 2013 - Dec 2013 
----------------------------------------------------------------------------
Venus History   95,800    2011       Japan     19,500   Jul 2013 - Nov 2013 
----------------------------------------------------------------------------
Venus Horizon   95,800    2012       Japan     13,000   Oct 2013 - Jul 2014 
----------------------------------------------------------------------------
Capesize                                                                    
----------------------------------------------------------------------------
Kanaris        178,100    2010       China     25,928   Sep 2011 - Jun 2031 
----------------------------------------------------------------------------
Pelopidas      176,000    2011       China     38,000   Feb 2012 - Dec 2021 
============================================================================
Subtotal      2,528,100                                                     
============================================================================
                                 NEW BUILDS                                 
----------------------------------------------------------------------------
Panamax                                                                     
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Hull No. 1659   76,600  1H 2014      Japan                                  
----------------------------------------------------------------------------
Hull No. 1660   76,600  1H 2014      Japan                                  
----------------------------------------------------------------------------
Hull No. 821    77,000  2H 2014      Japan                                  
----------------------------------------------------------------------------
Hull No. 822    77,000  1H 2015      Japan                                  
----------------------------------------------------------------------------
Hull No. TBN    76,500  1H 2015      Japan     15,400   Apr 2015 - Apr 2025 
----------------------------------------------------------------------------
Hull No. 827    77,000  2H 2015      Japan                                  
----------------------------------------------------------------------------
Hull No. 828    77,000  1H 2016      Japan                                  
----------------------------------------------------------------------------
Post-Panamax                                                                
----------------------------------------------------------------------------
Hull No. 1685                                                               
(8)             84,000  2H 2015      Japan                                  
----------------------------------------------------------------------------
Hull No. 1686                                                               
(8)             84,000  2H 2015      Japan                                  
----------------------------------------------------------------------------
Capesize                                                                    
----------------------------------------------------------------------------
Hull No. 8126  181,000  1H 2014      Japan   24,376 (7) Jan 2014 - Jan 2024 
============================================================================
Subtotal       886,700                                                      
============================================================================
Total         3,414,800                                                     
----------------------------------------------------------------------------

 
1) For newbuilds, the dates shown reflect the expected delivery date. 
2) Charter rate represents 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 rates represents the weighted average gross charter rate over
the duration of the applicable charter period or series of charter
periods, as applicable. Charter agreements may provide for additional
payments, namely ballast bonus, to compensate for vessel
repositioning. 
 3) The start dates listed reflect either actual
start dates or, in the case of contracted charters that had not
commenced as of November 1, 2013, scheduled start dates. Actual start
dates and redelivery dates may differ from the scheduled start and
redelivery dates depending on the terms of the charter and market
conditions. 
 4) Following the early redelivery of the Maritsa, in
January 2013 the Company received a cash compensation payment of
$13.1 million, which will be amortized over the period of the new
period time charter with the same charterer. The agreed gross daily
charter rate is $8,000 for the period until January 2015. 
 5) A
period time charter with at a gross daily charter rate linked to the
Baltic Panamax Index ("BPI") plus a premium of 9.5%. 
 6) A period
time charter with at a gross daily charter rate linked to the BPI
plus a premium of 6.5%. 
 7) The charter agreement 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. The charter agreement also
grants the charterer an option to purchase the vessel at any time
beginning at the end of the seventh year of the period time charter
period, at a price of $39 million less 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. 
 8) Change
of Hull Number of vessels 2396 and 2397 to 1685 and 1686
respectively.  
The contracted employment of fleet ownership days is: 
2013 (remaining) .......................79%
 2013 (full year)
.........................96%
 2014
.......................................37%
 2015
.......................................15%  
Capital expenditure requirements and liquidity 
As of September 30, 2013, the Company had contracted to acquire eight
newbuild vessels. The remaining capital expenditure requirements to
shipyards or sellers, for the delivery of these eight newbuilds
amounted to $220.2 million, of which $19.4 million is scheduled to be
paid in 2013, $111.2 million is scheduled to be paid in 2014 and
$89.6 million is scheduled to be paid in 2015.  
As of September 30, 2013, the Company had liquidity of $218.9 million
consisting of $21.2 million in cash and short-term time deposits,
$9.0 million in short-term restricted cash, $3.9 million in long-term
restricted cash, $65.8 million available under existing revolving
credit facilities, $79.0 million under committed loan facilities for
two existing and two newbuild vessels, and $40.0 million undrawn
availability against a $50.0 million floating rate note held by the
Company.  
Additionally, the Company continues to utilize the surplus from its
operations to fund its capital expenditure requirements and is able
to borrow additional amounts secured by its debt-free newbuild
vessels, upon the delivery of such vessels to the Company as and if
required.  
Dividend Declaration on the Common Stock 
The Board of Directors of the Company declared a cash dividend on the
Company's common stock of $0.06 per share payable on or about
December 6, 2013 to shareholders of record at the close of trading of
the Company's common stock on the New York Stock Exchange (the
"NYSE") on November 22, 2013. 
The Company has 76,686,484 shares of common stock issued and
outstanding as of today's date. 
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) the Company's earnings, financial
condition and cash requirements and available sources of liquidity,
(ii) decisions in relation to the Company's growth 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 financial conditions.
Accordingly, dividends might be reduced or not be paid in the future. 
Management Commentary 
Dr. Loukas Barmparis, President of the Company, said: "We have
increased our dividend to reflect the improving climate in the
charter market. We have substantial and increasing exposure in the
spot market as many long duration period time charters contracted
during the 2007-2008 period expire. We have also entered into
additional contracts for the construction of eco-design newbuild
vessels by Japanese shipyards aiming to renew and gradually expand
our fleet at an early stage of the forthcoming shipping cycle." 
Conference Call 
On Tuesday, November 5, 2013 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
November 15, 2013 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.  
Management Discussion of Third Quarter 2013 Results 
Net income decreased by 44% to $11.6 million for the third quarter of
2013 from $20.7 million for the third quarter of 2012, mainly due to
the following factors: 
Net revenues: Net revenues decreased by 10% to $41.9 million for the
third quarter of 2013, compared to $46.8 million for the same period
in 2012, mainly due to weak charter market conditions. The Company
operated 27.43 vessels on average during the third quarter of 2013,
earning a TCE(3) rate of $15,264, compared to 21.47 vessels and a TCE
rate of $22,534 during the same period in 2012. 
Vessel operating expenses: Vessel operating expenses increased by 29%
to $10.7 million for the third quarter of 2013, compared to $8.3
million for the same period in 2012. The increase in operating
expenses is mainly attributable to an increase in ownership days by
28% to 2,524 days for the third quarter of 2013 from 1,975 days for
the same period in 2012.  
Voyage expenses: Voyage expenses increased to $3.4 million for the
third quarter of 2013, compared to $2.3 million for the same period
in 2012, as a result of increase in ballast days for repositioning of
vessels due to higher exposure to the spot charter market. 
Depreciation: Depreciation increased to $9.6 million for the third
quarter of 2013, compared to $8.3 million for the same period in
2012, as a result of the increase in the average number of vessels
operated by the Company. 
Loss on derivatives: Loss on derivatives decreased to $1.5 million in
the third quarter of 2013, compared to a loss of $2.1 million for the
same period in 2012, as a result of the mark-to-market valuation of
the Company's interest rate swap transactions that we employ to
manage the risk and interest rate exposure of our loan and credit
facilities. These swaps economically hedge the interest rate exposure
of the Company's aggregate loans outstanding. The average remaining
period of our swap contracts is 3.0 years as of September 30, 2013.
The valuation of these interest rate swap transactions at the end of
each quarter is affected by the prevailing interest rates at that
time. 
Interest expense: Interest expense decreased to $2.1 million for the
third quarter of 2013 compared to $2.3 million the same period in
2012. 
Daily vessel operating expenses(4): Daily vessel operating expenses
increased by 2% to $4,249 for the third quarter of 2013, compared to
$4,185 for the same period in 2012. The increase is mainly
attributable to an increase in spare parts and tonnage tax expenses. 
Daily general and administrative expenses(4): Daily general and
administrative expenses, which include daily fixed and variable
management fees payable to our Manager and daily costs payable to
third parties in relation to our operation as a public company,
decreased by 12% to $1,071 for the third quarter of 2013, compared to
$1,217 for the same period in 2012. The decrease is mainly
attributable to a higher number of ownership days. 
(1) Adjusted net income, Adjusted EPS and Adjusted EBITDA are
non-GAAP measures and represent net income, EPS and EBITDA before
early redelivery income, gain/(loss) on derivatives and foreign
currency respectively. See Table 1.  
(2) EBITDA is a non-GAAP measure and represents net income before
interest expense, income tax expense, depreciation and amortization.
See Table 1. 
(3) Time charter equivalent rates, or TCE rates, represent the
Company's charter revenues less commissions and voyage expenses
during a period divided by the number of our available days during
the period. 
(4) See Table 2. 


 
                                                                            
                                                                            
           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  Nine-Months Period Ended 
                              September 30,              September 30,      
                        -------------------------  ------------------------ 
                            2012          2013         2012         2013    
                        -----------   -----------  -----------  ----------- 
REVENUES:                                                                   
  Revenues                   47,687        43,103      140,423      130,704 
  Commissions                  (842)       (1,223)      (2,433)      (3,155)
  Net revenues               46,845        41,880      137,990      127,549 
EXPENSES:                                                                   
  Voyage expenses            (2,340)       (3,383)      (5,907)      (8,673)
  Vessel operating                                                          
   expenses                  (8,266)      (10,724)     (24,746)     (31,081)
  Depreciation               (8,275)       (9,625)     (23,495)     (27,614)
  General and                                                               
   administrative                                                           
   expenses                  (2,404)       (2,703)      (7,205)      (8,263)
  Early redelivery                                                          
   income                         -             -            -        7,050 
  Operating income           25,560        15,445       76,637       58,968 
OTHER (EXPENSE) /                                                           
 INCOME:                                                                    
  Interest expense           (2,291)       (2,104)      (6,187)      (6,976)
  Other finance costs          (415)         (229)      (1,026)        (678)
  Interest income               281           249          777          763 
  (Loss)/Gain on                                                            
   derivatives               (2,081)       (1,454)      (5,449)       1,082 
  Foreign currency                                                          
   gain/(loss)                   12           (29)          12           (2)
  Amortization and                                                          
   write-off of                                                             
   deferred finance                                                         
   charges                     (323)         (283)        (867)        (918)
  Net income                 20,743        11,595       63,897       52,239 
  Less Preferred                                                            
   dividend                       -           818            -          969 
  Net income available                                                      
   to common                                                                
   shareholders              20,743        10,777       63,897       51,270 
  Earnings per share           0.27          0.14         0.85         0.67 
  Weighted average                                                          
   number of shares      76,658,865    76,684,316   75,066,388   76,679,082 
                                                                            
                                                                            
                                                                            
                             SAFE BULKERS, INC.                             
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)             
                       (In thousands of U.S. Dollars)                       
                                                                            
                                       December 31, 2012  September 30, 2013
                                      ------------------  ------------------
ASSETS                                                                      
  Cash, time deposits, and restricted                                       
   cash                                          125,524              30,167
  Other current assets                            46,305              50,350
  Vessels, net                                   810,001             864,979
  Advances for vessel acquisition and                                       
   vessels under construction                     39,902              50,410
  Restricted cash non-current                      3,923               3,923
  Long-term investment                            50,000              50,000
  Other non-current assets                         6,559               6,295
  Total assets                                 1,082,214           1,056,124
                                                                            
LIABILITIES AND EQUITY                                                      
  Current portion of long-term debt               19,199              34,848
  Other current liabilities                       28,294              23,260
  Long-term debt, net of current                                            
   portion                                       596,468             485,301
  Other non-current liabilities                   12,397               7,584
  Shareholders' equity                           425,856             505,131
  Total liabilities and equity                 1,082,214           1,056,124
                                                                            
                                                                            
                                                                            
                                  TABLE 1                                   
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED 
                                     EPS                                    
                                                                            
                            Three-Months                Nine-Months         
                     Period Ended September 30,  Period Ended September 30, 
                     --------------------------  -------------------------- 
(In thousands of U.S.                                                       
 Dollars except for                                     
                    
 share and per share                                                        
 data)                   2012          2013          2012          2013     
                     ------------  ------------  ------------  ------------ 
Net Income - Adjusted                                                       
 Net Income                                                                 
Net Income                 20,743        11,595        63,897        52,239 
Less Early redelivery                                                       
 income                         -             -             -        (7,050)
Plus Loss/(gain) on                                                         
 derivatives                2,081         1,454         5,449        (1,082)
Plus Foreign Currency                                                       
 (gain)/loss                  (12)           29           (12)            2 
Adjusted Net Income        22,812        13,078        69,334        44,109 
                                                                            
EBITDA - Adjusted                                                           
 EBITDA                                                                     
Net Income                 20,743        11,595        63,897        52,239 
Plus Net interest                                                           
 expense                    2,010         1,855         5,410         6,213 
Plus Depreciation           8,275         9,625        23,495        27,614 
Plus Amortization             323           283           867           918 
EBITDA                     31,351        23,358        93,669        86,984 
Less Early redelivery                                                       
 Income                         -             -             -        (7,050)
Plus Loss/(gain) on                                                         
 derivatives                2,081         1,454         5,449        (1,082)
Plus Foreign currency                                                       
 (gain)/loss                  (12)           29           (12)            2 
ADJUSTED EBITDA            33,420        24,841        99,106        78,854 
                                                                            
EPS - Adjusted EPS                                                          
Net Income                 20,743        11,595        63,897        52,239 
Less Preferred                                                              
 dividend                       -           818             -           969 
Net Income available                                                        
 to common                                                                  
 shareholders              20,743        10,777        63,897        51,270 
Weighted average                                                            
 number of shares      76,658,865    76,684,316    75,066,388    76,679,082 
EPS                          0.27          0.14          0.85          0.67 
Adjusted Net Income        22,812        13,078        69,334        44,109 
Less Preferred                                                              
 dividend                       -           818             -           969 
Adjusted Net Income                                                         
 available to common                                                        
 shareholders              22,812        12,260        69,334        43,140 
Adjusted EPS                 0.30          0.16          0.92          0.56 

 
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income
available to common shareholders and Adjusted EPS are not recognized
measurements under US GAAP. 
Adjusted Net Income represents net income before early redelivery
income, gain/(loss) on derivatives and foreign currency.  
Adjusted Net Income available to common shareholders represents
Adjusted Net Income less Preferred dividend. 
EBITDA represents net income before interest expense, income tax
expense, depreciation and amortization. Adjusted EBITDA represents
EBITDA before early redelivery income, gain/(loss) on derivatives and
foreign currency. EBITDA and Adjusted EBITDA assist the Company's
management and investors by increasing the comparability of the
Company's fundamental performance from period to period and against
the fundamental performance of other companies in the Company's
industry that provide EBITDA and Adjusted EBITDA information. The
Company believes that EBITDA and Adjusted EBITDA are useful in
evaluating the Company's operating performance compared to that of
other companies in the Company's industry because the calculation of
EBITDA generally eliminates the effects of financings, income taxes
and the accounting effects of capital expenditures and acquisitions
and the calculation of Adjusted EBITDA generally further eliminates
the effects of early redelivery income/(cost) and gain/(loss) on
derivatives and foreign currency, items which may vary for different
companies for reasons unrelated to overall operating performance. 
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income
available to common shareholders and Adjusted EPS 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 and 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, Adjusted EBITDA, Adjusted Net
Income, Adjusted Net Income available to common shareholders and
Adjusted EPS 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.  


 
                                                                            
              TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS              
                                                                            
                                                                            
                                           Three-Months       Nine-Months   
                                           Period Ended       Period Ended  
                                           September 30,     September 30,  
                                           2012     2013     2012     2013  
                                                                            
FLEET DATA                                                                  
Number of vessels at period's end              23       28       23       28
Average age of fleet (in years)              4.02     5.33     4.02     5.33
Ownership days (1)                          1,975    2,524    5,545    7,137
Available days (2)                          1,975    2,522    5,545    7,089
Operating days (3)                          1,960    2,507    5,501    7,065
Fleet utilization (4)                       99.2%    99.3%    99.2%    99.0%
Average number of vessels in the period                                     
 (5)                                        21.47    27.43    20.24    26.14
                                                                            
AVERAGE DAILY RESULTS                                                       
Time charter equivalent rate (6)          $22,534 $ 15,264  $23,820 $ 16,769
Daily vessel operating expenses (7)        $4,185  $ 4,249   $4,463  $ 4,355
Daily general and administrative expenses                                   
 (8)                                       $1,217  $ 1,071   $1,299   $1,158

 
_____________ 
(1) Ownership days represent the aggregate number of days in a period
during which each vessel in our fleet has been owned by us. 
 (2)
Available days represent 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 represent 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 is calculated by dividing the number of our
operating days during a period by the number of our ownership days
during that period. 
 (5) Average number of vessels in the period is
calculated by dividing ownership days in the period by the number of
days in that period. 
 (6) Time charter equivalent rates, or TCE
rates, represent our charter revenues less commissions and voyage
expenses during a period divided by the number of our available days
during the period. 
 (7) Daily vessel operating expenses include the
costs for crewing, insurance, lubricants, spare parts, provisions,
stores, repairs, maintenance, statutory and classification expense,
drydocking, intermediate and special surveys and other miscellaneous
items. Daily vessel operating expenses are calculated by dividing
vessel operating expenses by ownership days for the relevant period. 
(8) Daily general and administrative expenses include daily fixed
and variable management fees payable to our Manager and daily costs
in relation to our operation as a public company. Daily general and
administrative expenses are calculated by dividing general and
administrative expenses by ownership days for the relevant period.  
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 and series B preferred stock are listed on
the NYSE, where they trade under the symbols "SB" and "SB.PR.B",
respectively. The Company's current fleet consists of 28 drybulk
vessels, all built 2003 onwards, and the Company has contracted to
acquire ten additional drybulk newbuild vessels to be delivered at
various dates through 2016.  
Forward-Looking Statements  
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Exchange Act of 1933, as amended, and
in Section 21E of the Securities Act of 1934, 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.
Athens, Greece
Tel.: +30 2 111 888 400
Fax: +30 2 111 878 500
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 
 
 
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