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Safe Bulkers, Inc. Reports Fourth Quarter and Twelve Months 2013 Results and Declares Quarterly Dividend on Common Stock

Safe Bulkers, Inc. Reports Fourth Quarter and Twelve Months 2013 Results and 
Declares Quarterly Dividend on Common Stock 
ATHENS, GREECE -- (Marketwired) -- 02/26/14 --  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 twelve-months period ended
December 31, 2013. The Board of Directors of the Company also
declared a quarterly dividend of $0.06 per share of common stock for
the fourth quarter of 2013. 
Summary of Fourth Quarter 2013 Results 


 
--  Net revenue for the fourth quarter of 2013 increased by 28% to $59.2
    million from $46.4 million during the same period in 2012.
--  Net income for the fourth quarter of 2013 decreased by 4% to $31.0
    million from $32.2 million, during the same period in 2012. Adjusted
    net income(1) for the fourth quarter of 2013 increased by 53% to $31.3
    million from $20.5 million, during the same period in 2012.
--  EBITDA(2) for the fourth quarter of 2013 decreased by 2% to $43.0
    million from $43.9 million during the same period in 2012. Adjusted
    EBITDA(1) for the fourth quarter of 2013 increased by 34% to $43.3
    million from $32.2 million during the same period in 2012.
--  Earnings per share ("EPS") and Adjusted EPS(1) for the fourth quarter
    of 2013 were $0.38 and $0.38 respectively, calculated on a weighted
    average number of shares of 79,916,260, compared to $0.42 and $0.27 in
    the fourth quarter of 2012, calculated on a weighted average number of
    shares of 76,665,956.
--  The Board of Directors of the Company declared a dividend of $0.06 per
    share for the fourth quarter of 2013.

  
Summary of Results for the Twelve-Month Period Ended December 31, 2013  


 
--  Net revenue for the twelve-month period ended December 31, 2013
    increased by 1% to $186.7 million from $184.3 million during the same
    period in 2012.
--  Net income for the twelve-month period ended December 31, 2013
    decreased by 13% to $83.3 million from $96.1 million. Adjusted net
    income(1) for the twelve-month period ended December 31, 2013
    decreased by 16% to $75.4 million from $89.8 million, during the same
    period in 2012.
--  EBITDA(2) for the twelve-month period ended December 31, 2013
    decreased by 5% to $130.0 million from $137.5 million during the same
    period in 2012. Adjusted EBITDA(1) for the twelve-month period ended
    December 31, 2013 decreased by 7% to $122.2 million from $131.2
    million during the same period in 2012.
--  EPS and Adjusted EPS(1) for the twelve-month period ended December 31,
    2013 were $1.05 and $0.95 respectively, calculated on a weighted
    average number of shares of 77,495,029, compared to $1.27 and $1.19
    for the same period in 2012, calculated on a weighted average number
    of shares of 75,468,465.

  
Fleet and Employment Profile 
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 respectively. 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.  
In December 2013, the Company agreed with the charterer of the Stalo
to terminate the period time charter contract ahead of the contracted
earliest redelivery date of January 31, 2015. At the time of
concluding the termination agreement, the Company had secured a
replacement time charter contract with the same charterer. In
connection with this agreement, in December 2013, the Company
received compensation of $8.3 million net of commissions. The cash
compensation received less accrued revenue of $0.3 million, has been
amortized over the term of the replacement time charter contract,
which ended in January 2014. 
In December 2013, the Company agreed with the charterer of the Eleni
to terminate the period time charter contract ahead of the contracted
earliest redelivery date of February 28, 2015. At the time of
concluding the termination agreement, the Company had secured a
replacement time charter contract with the same charterer. In
connection with this agreement, in December 2013, the Company
received compensation of $8.4 million net of commissions. The cash
compensation received plus deferred revenue of $3.0 million, has been
amortized over the term of the replacement time charter contract,
which ended in December 2013. 
In January 2014, the Company took delivery of the Lake Despina (Hull
No. 8126), a 181,400 dwt, Japanese newbuild Capesize class vessel.
Upon her delivery, the vessel entered into a 10-year time charter
contract.  
In January 2014, the Company took delivery of the Kypros Land (Hull
No. 1659), a 77,100 dwt, Japanese eco-design newbuild Panamax class
vessel. Upon her delivery, the vessel was employed in the spot
charter market. 
As of February 25, 2014, the Company's operational fleet was
comprised of 30 drybulk vessels with an average age of 5.4 years and
an aggregate carrying capacity of 2.8 million dwt. The fleet consists
of nine Panamax class vessels, seven Kamsarmax class vessels, eleven
post- Panamax class vessels and three Capesize class vessels, all
built 2003 onwards.  
As of February 25, 2014, the Company had contracted to acquire eight
additional drybulk newbuild vessels, with deliveries scheduled at
various dates through 2016. The orderbook consists of six Panamax
class vessels and two Post-Panamax class vessels.  
Set out below is a table showing the Company's existing and newbuild
vessels and their contracted employment as of February 24, 2014:  


 
-----------------------------------------------------------------
-----------
                         Year                  Charter                      
                         Built   Country of     Rate     Charter Duration   
  Vessel Name    DWT      (1)   construction (2)USD/day         (3)         
----------------------------------------------------------------------------
                                CURRENT FLEET                               
----------------------------------------------------------------------------
Panamax                                                                     
----------------------------------------------------------------------------
Maria           76,000   2003       Japan      12,750   Nov 2013 - Mar 2014 
----------------------------------------------------------------------------
Koulitsa        76,900   2003       Japan      13,000   Feb 2014 - May 2014 
----------------------------------------------------------------------------
Paraskevi       74,300   2003       Japan       8,650   Aug 2013 - Jul 2014 
----------------------------------------------------------------------------
                                             10,000 (8)                     
                                              BPI + 6%  Feb 2014 - Apr 2014 
Vassos          76,000   2004       Japan        (8)    Apr 2014 - Sep 2014 
----------------------------------------------------------------------------
Katerina        76,000   2004       Japan       9,750   Jan 2014 - Apr 2014 
----------------------------------------------------------------------------
Maritsa         76,000   2005       Japan    27,649 (4) Mar 2013 - Jan 2015 
----------------------------------------------------------------------------
Efrossini       75,000   2012     
  Japan      16,000   Jan 2014 - Mar 2014 
----------------------------------------------------------------------------
Zoe             75,000   2013       Japan      10,000   Nov 2013 - May 2014 
----------------------------------------------------------------------------
Kypros Land     77,100   2014       Japan      14,000   Jan 2014 - 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 - Mar 2014 
----------------------------------------------------------------------------
Post-Panamax                                                                
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Stalo           87,000   2006       Japan                                   
----------------------------------------------------------------------------
Marina          87,000   2006       Japan      12,500   Jan 2014 - Mar 2014 
----------------------------------------------------------------------------
Xenia           87,000   2006       Japan      14,000   Jan 2014 - Mar 2014 
----------------------------------------------------------------------------
                                             12,400 (9)                     
                                              BPI + 18% Dec 2013 - May 2014 
Sophia          87,000   2007       Japan        (9)    Jun 2014 - Aug 2014 
----------------------------------------------------------------------------
Eleni           87,000   2008       Japan      17,000   Jan 2014 - May 2014 
----------------------------------------------------------------------------
Martine         87,000   2009       Japan      14,500   Dec 2013 - Feb 2014 
----------------------------------------------------------------------------
Andreas K       92,000   2009    South Korea   13,500   Feb 2014 - Apr 2014 
----------------------------------------------------------------------------
Panayiota K     92,000   2010    South Korea   12,750   Sep 2013 - Apr 2014 
----------------------------------------------------------------------------
Venus Heritage  95,800   2010       Japan      13,950   Feb 2014 - Mar 2014 
----------------------------------------------------------------------------
Venus History   95,800   2011       Japan      17,350   Feb 2014 - Apr 2014 
----------------------------------------------------------------------------
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 
----------------------------------------------------------------------------
Lake Despina   181,400   2014       Japan    24,376 (7) Jan 2014 - Jan 2024 
============================================================================
Subtotal      2,786,600                                                     
============================================================================
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                         Year                  Charter                      
                         Built   Country of     Rate     Charter Duration   
  Vessel Name    DWT      (1)   construction (2)USD/day         (3)         
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                 NEW BUILDS                                 
----------------------------------------------------------------------------
Panamax                                                                     
----------------------------------------------------------------------------
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. 1689   76,500  1H 2015     Japan      15,400   May 2015 - May 2025 
----------------------------------------------------------------------------
Hull No. 827    77,000  2H 2015     Japan                                   
----------------------------------------------------------------------------
Hull No. 828    77,000  1H 2016     Japan                                   
----------------------------------------------------------------------------
Post-Panamax                                                                
----------------------------------------------------------------------------
Hull No. 1685   84,000  2H 2015     Japan                                   
----------------------------------------------------------------------------
Hull No. 1686   84,000  2H 2015     Japan                                   
----------------------------------------------------------------------------
Subtotal       629,100                                                      
============================================================================
Total         3,415,700                                                     
----------------------------------------------------------------------------
                                                                            
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 February 24, 2014,   
   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 is  
   being 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 at a gross daily charter rate linked to the Baltic 
   Panamax Index ("BPI") plus a premium of 9.5%.                            
6) A period time charter at a gross daily charter rate linked to the BPI    
   plus a premium of 6.5%.                                                  
7) 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. 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 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.                    
8) A period time charter at a gross daily charter rate of $10,000 for the   
   period until April 2014 followed by a gross daily charter rate linked to 
   the BPI plus a premium of 6%.                                            
9) A period time charter at a gross daily charter rate of $12,400 for the   
   period until May 2014 followed by a gross daily charter rate linked to   
   the BPI plus a premium of 18%.                                           

 
The contracted employment of fleet ownership days is: 
2014 (remaining) .........................36%
 2014 (full year)
...........................45%
 2015
.........................................14%
 2016
.........................................11% 
Arbitration award 
In January 2014, an arbitration award was issued in favor of the
Company by a London arbitration tribunal, in relation to the
cancelled Capesize class vessel with hull number J0131, which ordered
the related shipyard to refund to the Company the full amount of
advances paid of $31.8 million with interest calculated from the
receipt of the relevant instalments by the shipyard until the refund
of such instalments. The Company calculates the interest as of
December 31, 2013 to amount to $4.1 million. The Company served the
award to the relevant refund guarantor, which under the terms of the
relevant refund guarantees must refund such advances and interest
within 30 business days from the date of such service. The appeal
period of the award lapsed on or about February 24, 2014. The Company
remains confident about the recoverability of the advances and
interests and will continue pursuing vigorously the refund under the
award. However, the enforcement of awards and any additional legal
proceedings are inherently uncertain and the Company cannot provide
assurance that the award will be paid or refunded according to the
award terms. 
Capital expenditure requirements and liquidity  
As of December 31, 2013, the Company had contracted to acquire ten
newbuild vessels. The remaining capital expenditure requirements to
shipyards or sellers, for the delivery of these ten newbuilds
amounted to $254.9 million, of which $111.1 million was scheduled to
be paid in 2014, $122.7 million was scheduled to be paid in 2015 and
$21.1 million was scheduled to be paid in 2016.  
As of December 31, 2013, the Company had liquidity of $262.0 million
consisting of $64.7 million in cash and short-term time deposits,
$6.7 million in short-term restricted cash, $1.4 million in long-term
restricted cash, $86.2 million available under existing revolving
credit facilities, $63.0 million under committed loan facilities for
one 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 net cash flows
from its operations to fund its capital expenditure requirements and
expects to utilize the proceeds of the arbitration award upon
receipt. As of December 31, 2013 the Company had eight newbuild
vessels on order against which additional financing could be raised
upon their delivery, 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 March
17, 2014 to shareholders of record at the close of trading of the
Company's common stock on the New York Stock Exchange (the "NYSE") on
March 10, 2014. 
The Company has 83,439,515 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: "As many of our
long duration time charters expired, we have substantial and
increasing exposure to the spot market. We believe our ongoing
efforts to renew and gradually expand our fleet has positioned us
well this early stage of the forthcoming shipping cycle." 
Conference Call 
On Thursday, February 27, 2014 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
March 7, 2014 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 Fourth Quarter 2013 Results 
Net income decreased by 4% to $31.0 million for the fourth quarter of
2013 from $32.2 million for the fourth quarter of 2012, mainly due to
the following factors: 
Net revenues: Net revenues increased by 28% to $59.2 million for the
fourth quarter of 2013, compared to $46.4 million for the same period
in 2012, mainly due to the amortization of cash compensation in
relation to the agreements concluded with the charterers of the Stalo
and Eleni. The Company operated 28.00 vessels on average during the
fourth quarter of 2013, earning a TCE(3) rate of $22,550, compared to
23.60 vessels and a TCE rate of $20,845 during the same period in
2012. 
Vessel operating expenses: Vessel operating expenses increased by 11%
to $10.9 million for the fourth quarter of 2013, compared to $9.8
million for the same period in 2012. The increase in operating
expenses is mainly attributable to an increase in ownership days by
19% to 2,576 days for the fourt
h quarter of 2013 from 2,171 days for
the same period in 2012.  
Depreciation: Depreciation increased to $9.8 million for the fourth
quarter of 2013, compared to $8.8 million for the same period in
2012, as a result of the increase in the average number of vessels
operated by the Company. 
Early redelivery income: During the fourth quarter of 2013, the
Company recorded no early redelivery income, compared to $11.7
million, for the same period in 2012, which related to early
termination agreements for the period time charters of our vessels
Maria and Martine. 
Interest expense: Interest expense decreased to $2.1 million or 28%
in the fourth quarter of 2013 from $2.9 million for the same period
in 2012, as a result of the decrease in the average outstanding
amount of loans and credit facilities. 
Daily vessel operating expenses(4): Daily vessel operating expenses
decreased by 6% to $4,224 for the fourth quarter of 2013 compared to
$4,511 for the same period in 2012, mainly due to decrease of cost of
lubricants, spares, store and provisions. 
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 incurred in
relation to our operation as a public company, decreased by 5% to
$1,202 for the fourth quarter of 2013, compared to $1,263 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    Twelve-Months Period  
                               Ended December 31,      Ended December 31,   
                             ----------------------  ---------------------- 
                                2012        2013        2012        2013    
                             ----------  ----------  ----------  ---------- 
REVENUES:                                                                   
  Revenues                       47,191      60,816     187,557     191,520 
  Commissions                      (828)     (1,644)     (3,261)     (4,799)
  Net revenues                   46,363      59,172     184,296     186,721 
EXPENSES:                                                                   
  Voyage expenses                (1,379)     (1,535)     (7,286)    (10,207)
  Vessel operating expenses      (9,793)    (10,882)    (34,540)    (41,964)
  Depreciation                   (8,755)     (9,780)    (32,250)    (37,394)
  General and administrative                                                
   expenses                      (2,741)     (3,097)     (9,946)    (11,360)
  Early redelivery income        11,677           -      11,677       7,050 
  Operating income               35,372      33,878     111,951      92,846 
OTHER (EXPENSE) / INCOME:                                                   
  Interest expense               (2,885)     (2,110)     (9,072)     (9,086)
  Other finance costs              (243)       (354)     (1,268)     (1,032)
  Interest income                   288         246       1,122       1,008 
  Gain/(loss) on derivatives         65        (269)     (5,384)        813 
  Foreign currency loss             (15)        (38)         (3)        (40)
  Amortization and write-off                                                
   of deferred finance                                                      
   charges                         (359)       (334)     (1,226)     (1,252)
  Net income                     32,223      31,019      96,120      83,257 
  Less Preferred dividend             -         818           -       1,787 
  Net Income available to                                                   
   common shareholders           32,223      30,201      96,120      81,470 
  Earnings per share               0.42        0.38        1.27        1.05 
  Weighted average number of                                                
   shares                    76,665,956  79,916,260  75,468,465  77,495,029 
                                                                            
                                                                            
                                                                            
                             SAFE BULKERS, INC.                             
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)             
                       (In thousands of U.S. Dollars)                       
                                                                            
                                        December 31, 2012  December 31, 2013
                                        -----------------  -----------------
ASSETS                                                                      
  Cash, time deposits                             125,524             71,421
  Other current assets                             46,305             51,764
  Short-term investment                                 -             50,000
  Vessels, net                                    810,001            855,200
  Advances for vessel acquisition and                                       
   vessels under construction                      39,902             76,299
  Restricted cash non-current                       3,923              1,423
  Long-term investment                             50,000                  -
  Other non-current assets                          6,559              6,109
  Total assets                                  1,082,214          1,112,216
                                                                            
                                                                            
LIABILITIES AND EQUITY                                                      
  Current portion of long-term debt                19,199             35,185
  Other current liabilities                        28,294             22,119
  Long-term debt, net of current                                            
   portion                                        596,468            473,110
  Other non-current liabilities                    12,397              3,466
  Shareholders' equity                            425,856            578,336
  Total liabilities and equity                  1,082,214          1,112,216
                                                                            
                                                                            
                                                                            
                                  TABLE 1                                   
       RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA       
                              AND ADJUSTED EPS                              
                                                                            
                               Three-Months Period    Twelve-Months Period  
                                      Ended                  Ended          
                                   December 31,           December 31,      
                             ----------------------- ---------------------- 
(In thousands of U.S.                                                       
 Dollars except for share                                                   
 and per share data)            2012         2013       2012        2013    
                             ----------  ----------- ----------  ---------- 
Net Income - Adjusted Net                                                   
 Income                                                                     
Net Income                       32,223       31,019     96,120      83,257 
Less early redelivery income    (11,677)           -    (11,677)     (7,050)
Plus (gain)/loss on                                      
                   
 derivatives                        (65)         269      5,384        (813)
Plus foreign currency loss           15           38          3          40 
Adjusted Net Income              20,496       31,326     89,830      75,434 
                                                                            
EBITDA - Adjusted EBITDA                                                    
Net income                       32,223       31,019     96,120      83,257 
Plus net interest expense         2,597        1,864      7,950       8,078 
Plus depreciation                 8,755        9,780     32,250      37,394 
Plus amortization                   359          334      1,226       1,252 
EBITDA                           43,934       42,997    137,546     129,981 
Less early redelivery income    (11,677)           -    (11,677)     (7,050)
Plus (gain)/loss on                                                         
 derivatives                        (65)         269      5,384        (813)
Plus foreign currency loss           15           38          3          40 
ADJUSTED EBITDA                  32,207       43,304    131,256     122,158 
                                                                            
EPS - Adjusted EPS                                                          
Net Income                       32,223       31,019     96,120      83,257 
Less preferred dividend               -          818          -       1,787 
Net income available to                                                     
 common shareholders             32,223       30,201     96,120      81,470 
Weighted average number of                                                  
 common shares               76,665,956   79,916,260 75,468,465  77,495,029 
EPS                                0.42         0.38       1.27        1.05 
Adjusted Net Income              20,496       31,326     89,830      75,434 
Less preferred dividend               -          818          -       1,787 
Adjusted Net Income                                                         
 available to common                                                        
 shareholders                    20,496       30,508     89,830      73,647 
Adjusted EPS                       0.27         0.38       1.19        0.95 

 
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 Period  Twelve-Months Period 
                                        Ended                  Ended        
                                     December 31,          December 31,     
                                    2012       2013       2012       2013   
                                                                            
FLEET DATA                                                                  
Number of vessels at period end         24         28         24         28 
Average age of fleet (in years)       4.50       5.58       4.50       5.58 
Ownership days (1)                   2,171      2,576      7,716      9,713 
Available days (2)                   2,158      2,556      7,703      9,647 
Operating days (3)                   2,154      2,551      7,654      9,615 
Fleet utilization (4)                 99.2%      99.0%      99.2%      99.0%
Average number of vessels in the                                            
 period (5)                          23.60      28.00      21.08      26.61 
                                                                            
AVERAGE DAILY RESULTS                                                       
Time charter equivalent rate (6) $  20,845  $  22,550  $  22,979  $  18,297 
Daily vessel operating expenses                                             
 (7)                             $   4,511  $   4,224  $   4,476  $   4,320 
Daily general and administrative                                            
 expenses (8)                    $   1,263  $   1,202  $   1,289  $   1,170 
                                                                            
(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 p
eriod.                     
(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 30 drybulk vessels, all built 2003 onwards, and the
Company has contracted to acquire eight 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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