The Company also announced that its Board of Directors has declared a quarterly cash dividend of
Share and per share results included herein have been retroactively adjusted to reflect the one-for-ten reverse stock split of the Company’s common shares, which took effect on
Results for the Three and Nine Months Ended
For the third quarter of 2020, the Company’s GAAP net loss was
- a non-cash loss of approximately
$3.7 million and cash dividend income of$0.2 million , or$0.30 per diluted share, from the Company’s equity investment in Scorpio Tankers Inc.; and - a write-down of assets of approximately
$19.6 million , or$1.67 per diluted share, related to the classification of the SBI Rock as held for sale and the agreement to sell the SBI Sousta, both of which are Kamsarmax vessels.
For the same period in 2019, the Company’s GAAP net loss was
Total vessel revenues for the third quarter of 2020 were
For the third quarter of 2020, the Company’s adjusted net loss was
For the third quarter of 2019, the Company’s adjusted net loss was
For the first nine months of 2020, the Company’s GAAP net loss was
- a loss of approximately
$106.7 million and cash dividend income of$0.9 million , or$12.31 per diluted share, from the Company’s equity investment in Scorpio Tankers Inc.; - a write-down of assets of approximately
$36.6 million , or$4.14 per diluted share, related to the classification of the four vessels as held for sale (SBI Taurus, SBI Bolero, SBI Jaguar and SBI Rock) and the agreement to sell the SBI Sousta; and - a write-off of approximately
$0.4 million , or$0.04 per diluted share, of deferred financing costs on the credit facilities related to the SBI Taurus, SBI Bolero and SBI Jaguar.
For the first nine months of 2019, the Company’s GAAP net income was
Total vessel revenues for the first nine months of 2020 were
For the first nine months of 2020, the Company’s adjusted net loss was
For the first nine months of 2019, the Company’s adjusted net income was
TCE Revenue
TCE Revenue Earned during the Third Quarter of 2020 (see Non-GAAP Financial Measures)
- Our Kamsarmax fleet (which includes both scrubber fitted and non-scrubber fitted vessels) earned an average of
$10,142 revenue per day. - Our Ultramax fleet (which includes both scrubber fitted and non-scrubber fitted vessels) earned an average of
$8,930 revenue per day.
Voyages Fixed thus far for the Fourth Quarter of 2020, as of the date hereof
- Kamsarmax fleet (which includes both scrubber fitted and non-scrubber fitted vessels): approximately
$12,740 revenue per day on average for 42% of the days - Ultramax fleet (which includes both scrubber fitted and non-scrubber fitted vessels): approximately
$11,226 revenue per day on average for 45% of the days
Cash and Cash Equivalents
As of
Recent Significant Events
COVID-19
Since the beginning of the calendar year 2020, the ongoing outbreak of the novel coronavirus (COVID-19) that originated in
Quarterly Cash Dividend
In the third quarter of 2020, the Company’s Board of Directors declared and the Company paid a quarterly cash dividend of
On
Offshore Wind
Our transition continues, and our conviction towards offshore wind is validated constantly. We are witnessing an unprecedented alignment of scientific, political, and commercial forces, leading to accelerated plans around the world to develop wind energy. Shortly we expect to sign the contract for the construction of our first installation vessel, but other steps will follow. We are re-tooling our organization and our mission to deliver the service that our customers will require.
The Company entered into agreements to sell the following vessels to unaffiliated third parties (dollars in thousands).
Vessels for which the sales occurred during the third quarter.
Vessel | Vessel Type | Year Built | Sales Price | Credit Facility | Related Debt | Expected Delivery | ||||
SBI Rock (1)(2) | Kamsarmax | 2016 | $ | 18,030 | $ | 6,015 | Delivered | |||
SBI Sousta | Kamsarmax | 2016 | $ | 18,435 | $ | 12,684 | Q4 2020 | |||
Total Sales Price | $ | 36,465 |
As a result of the classification of the SBI Rock as held for sale and the agreement to sell the SBI Sousta, the Company wrote-down assets by approximately
Vessels for which the sales occurred from
Vessel | Vessel Type | Year Built | Sales Price | Credit Facility | Related Debt | Expected Delivery | ||||
SBI Conga (2) | Kamsarmax | 2015 | $ | 18,400 | $ | 12,009 | Q4 2020 | |||
SBI Phoenix (2) | Ultramax | 2017 | $ | 17,000 | $ | 12,313 | Q4 2020 | |||
SBI Samson (1)(2) | Ultramax | 2017 | $ | 17,000 | $ | 12,313 | Delivered | |||
SBI Hera | Ultramax | 2016 | $ | 18,460 | $ | 12,759 | Q4 2020 | |||
SBI Zeus | Ultramax | 2016 | $ | 18,500 | $ | 12,759 | Q4 2020 | |||
SBI Hyperion | Ultramax | 2016 | $ | 17,500 | $ | 12,313 | Q4 2020 | |||
Total Sales Price | $ | 106,860 |
- The sale of the SBI Rock and SBI Samson have been completed as of
October 26, 2020 . - Related debt has been repaid between
October 1, 2020 andOctober 26, 2020 .
As a result of the sales of the SBI Conga, SBI Phoenix, SBI Samson, SBI Hera, SBI Zeus and SBI Hyperion announced in
The Company also expects to write-off approximately
In addition, the available credit under the Company’s revolving line of credit has been permanently reduced by approximately
Debt and Liquidity
Amendment of Minimum Liquidity Covenant
The Company has agreed with its lenders and a finance lessor to permanently reduce the level of the minimum liquidity covenant under the relevant debt financings from the greater of: (i)
In consideration for the above amendment, the Company has made advance principal repayments of approximately
Payment Holiday on Certain Future Principal Repayments
The Company has agreed with its lenders to reduce future principal repayments of approximately
The advance principal payments made during the third quarter of 2020 related to the amendment of the minimum liquidity covenant and payment holidays by credit facility are as follows (dollars in thousands):
Amendment of Minimum Liquidity Covenant | Payment Holiday on Certain Future Principal Repayments | ||||
$ | 820 | $ | 1,093 | ||
555 | 1,111 | ||||
565 | 565 | ||||
3,479 | 6,958 | ||||
607 | 1,214 | ||||
1,650 | 3,950 | ||||
Total | $ | 7,676 | $ | 14,891 |
In addition, the Company agreed with a specific finance lessor to defer two quarterly installment payments (i.e. Q1 2021 and Q2 2021) to the subsequent eight quarters (in equal payments). As a result, the Company will not have to make certain quarterly installment payments on this lease financing totaling approximately
Debt Overview
The Company’s outstanding debt balances, gross of unamortized deferred financing costs as of
As of 2020 | As of 2020 | |||||||
Credit Facility | Amount Outstanding | |||||||
$ | 33,531 | $ | 33,531 | |||||
26,166 | 26,166 | |||||||
24,029 | 24,029 | |||||||
66,552 | 115,661 | |||||||
30,786 | 30,786 | |||||||
72,550 | 47,924 | |||||||
15,935 | 15,829 | |||||||
16,412 | 16,309 | |||||||
16,548 | 16,453 | |||||||
18,091 | 17,983 | |||||||
19,322 | 19,203 | |||||||
CMBFL Lease Financing | 104,963 | 104,963 | ||||||
40,383 | 40,035 | |||||||
AVIC Lease Financing | 104,330 | 103,184 | ||||||
61,197 | 60,719 | |||||||
Total | $ | 650,795 | $ | 672,775 |
(1) Debt outstanding as of
(2) Drew down
The Company’s projected quarterly debt repayments on its bank loans and lease financing arrangements through 2021 are as follows (dollars in thousands):
Principal on Bank Loans | Principal on Lease Financing Arrangements | Total | ||||||||||
Q4 2020 (1)(2) | $ | 51,880 | $ | 6,593 | $ | 58,473 | ||||||
Q1 2021 | 1,305 | 6,782 | 8,087 | |||||||||
Q2 2021 | 1,305 | 6,817 | 8,122 | |||||||||
Q3 2021 | 749 | 9,716 | 10,465 | |||||||||
Q4 2021 | 6,027 | 9,736 | 15,763 | |||||||||
Total | $ | 61,266 | $ | 39,644 | $ | 100,910 |
(1) Relates to payments expected to be made from
(2) Includes the repayment of approximately
IMO 2020
As of
Financial Results for the Three Months Ended
For the third quarter of 2020, the Company’s GAAP net loss was
EBITDA for the third quarters of 2020 and 2019 were a loss of
For the third quarter of 2020, the Company’s adjusted net loss was
For the third quarter of 2019, the Company’s adjusted net loss was
The Company’s vessel revenues for the third quarter of 2020 were
Total operating expenses for the third quarter of 2020 were
Ultramax Operations
Three Months Ended | ||||||||||||||
Dollars in thousands | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue: | ||||||||||||||
Vessel revenue | $ | 27,701 | $ | 41,257 | $ | (13,556 | ) | (33 | ) | |||||
Voyage expenses | 1,420 | 240 | 1,180 | 492 | ||||||||||
TCE Revenue | $ | 26,281 | $ | 41,017 | $ | (14,736 | ) | (36 | ) | |||||
Operating expenses: | ||||||||||||||
Vessel operating costs | 16,508 | 16,798 | (290 | ) | (2 | ) | ||||||||
Charterhire expense | 520 | 936 | (416 | ) | (44 | ) | ||||||||
Vessel depreciation | 9,369 | 9,000 | 369 | 4 | ||||||||||
General and administrative expense | 937 | 1,070 | (133 | ) | (12 | ) | ||||||||
Loss / write-down on assets held for sale | — | (194 | ) | 194 | NA | |||||||||
Total operating expenses | $ | 27,334 | $ | 27,610 | $ | (276 | ) | (1 | ) | |||||
Operating (loss) income | $ | (1,053 | ) | $ | 13,407 | $ | (14,460 | ) | (108 | ) |
Vessel revenue for the Company’s Ultramax Operations decreased to
TCE revenue (see Non-GAAP Financial Measures below) for the Company’s Ultramax Operations was
Three Months Ended | ||||||||||||||
Ultramax Operations: | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue (in thousands) | $ | 26,281 | $ | 41,017 | $ | (14,736 | ) | (36 | ) | |||||
TCE Revenue / Day | $ | 8,930 | $ | 11,824 | $ | (2,894 | ) | (24 | ) | |||||
Revenue Days | 2,943 | 3,469 | (526 | ) | (15 | ) |
The Company’s Ultramax Operations vessel operating costs were
Charterhire expense for the Company’s Ultramax Operations was approximately
Ultramax Operations depreciation increased from
General and administrative expense for the Company’s Ultramax Operations, which consists primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions, was approximately
During the third quarter of 2019, a partial reversal of the write-downs of the SBI Puma and SBI Cougar of approximately
Kamsarmax Operations
Three Months Ended | ||||||||||||||
Dollars in thousands | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue: | ||||||||||||||
Vessel revenue | $ | 18,989 | $ | 21,970 | $ | (2,981 | ) | (14 | ) | |||||
Voyage expenses | 277 | 261 | 16 | 6 | ||||||||||
TCE Revenue | $ | 18,712 | $ | 21,709 | $ | (2,997 | ) | (14 | ) | |||||
Operating expenses: | ||||||||||||||
Vessel operating costs | 7,979 | 8,398 | (419 | ) | (5 | ) | ||||||||
Charterhire expense | 5,854 | 6,552 | (698 | ) | (11 | ) | ||||||||
Vessel depreciation | 4,721 | 4,533 | 188 | 4 | ||||||||||
General and administrative expense | 457 | 482 | (25 | ) | (5 | ) | ||||||||
Loss / write-down on assets held for sale | 19,598 | — | 19,598 | NA | ||||||||||
Total operating expenses | $ | 38,609 | $ | 19,965 | $ | 18,644 | 93 | |||||||
Operating loss | $ | (19,897 | ) | $ | 1,744 | $ | (21,641 | ) | 1,241 |
Vessel revenue for the Company’s Kamsarmax Operations decreased to
TCE revenue (see Non-GAAP Financial Measures) for the Company’s Kamsarmax Operations was
Three Months Ended | ||||||||||||||
Kamsarmax Operations: | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue (in thousands) | $ | 18,712 | $ | 21,709 | $ | (2,997 | ) | (14 | ) | |||||
TCE Revenue / Day | $ | 10,142 | $ | 13,149 | $ | (3,007 | ) | (23 | ) | |||||
Revenue Days | 1,845 | 1,651 | 194 | 12 |
Kamsarmax Operations vessel operating costs were
Kamsarmax Operations charterhire expense was
Kamsarmax Operations depreciation was
General and administrative expense for the Company’s Kamsarmax Operations was
During the third quarter of 2020, the Company recorded a write down on assets held for sale of $19.6 million related to the classification of the SBI Rock as held for sale and the agreement to sell the SBI Sousta.
Corporate
Certain general and administrative expenses that the Company incurs, as well as all of its financial expenses and investment income or losses, are not attributable to a specific segment. Accordingly, these costs are not allocated to the Company’s segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were
The Company recorded a loss of approximately
Financial expenses, net of interest income decreased to
Financial Results for the Nine Months Ended
For the first nine months of 2020, the Company’s GAAP net loss was
EBITDA for the first nine months of 2020 and 2019 were a loss of
For the first nine months of 2020, the Company’s adjusted net loss was
For the first nine months of 2019, the Company’s adjusted net income was
The Company’s vessel revenues for the first nine months of 2020 were
Total operating expenses for the first nine months of 2020 were
Ultramax Operations
Nine Months Ended | ||||||||||||||
Dollars in thousands | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue: | ||||||||||||||
Vessel revenue | $ | 66,744 | $ | 103,234 | $ | (36,490 | ) | (35 | ) | |||||
Voyage expenses | 2,787 | 438 | 2,349 | 536 | ||||||||||
TCE Revenue | $ | 63,957 | $ | 102,796 | $ | (38,839 | ) | (38 | ) | |||||
Operating expenses: | ||||||||||||||
Vessel operating costs | 47,813 | 50,962 | (3,149 | ) | (6 | ) | ||||||||
Charterhire expense | 2,487 | 2,731 | (244 | ) | (9 | ) | ||||||||
Vessel depreciation | 25,499 | 27,108 | (1,609 | ) | (6 | ) | ||||||||
General and administrative expense | 2,993 | 3,131 | (138 | ) | (4 | ) | ||||||||
Loss / write-down on assets held for sale | 7,615 | 4,688 | 2,927 | 62 | ||||||||||
Total operating expenses | $ | 86,407 | $ | 88,620 | $ | (2,213 | ) | (2 | ) | |||||
Operating (loss) income | $ | (22,450 | ) | $ | 14,176 | $ | (36,626 | ) | (258 | ) |
Vessel revenue for the Company’s Ultramax Operations decreased to
TCE revenue (see Non-GAAP Financial Measures below) for the Company’s Ultramax Operations was
Nine Months Ended | ||||||||||||||
Ultramax Operations: | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue (in thousands) | $ | 63,957 | $ | 102,796 | $ | (38,839 | ) | (38 | ) | |||||
TCE Revenue / Day | $ | 7,604 | $ | 10,010 | $ | (2,406 | ) | (24 | ) | |||||
Revenue Days | 8,411 | 10,269 | (1,858 | ) | (18 | ) |
The Company’s Ultramax Operations vessel operating costs were
Charterhire expense for the Company’s Ultramax Operations was approximately
Ultramax Operations depreciation decreased from
General and administrative expense for the Company’s Ultramax Operations, which consists primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions, was approximately
During the first nine months of 2020, the Company recorded a write-down on assets held for sale of
Kamsarmax Operations
Nine Months Ended | ||||||||||||||
Dollars in thousands | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue: | ||||||||||||||
Vessel revenue | $ | 46,935 | $ | 61,081 | $ | (14,146 | ) | (23 | ) | |||||
Voyage expenses | 1,730 | 408 | 1,322 | 324 | ||||||||||
TCE Revenue | $ | 45,205 | $ | 60,673 | $ | (15,468 | ) | (25 | ) | |||||
Operating expenses: | ||||||||||||||
Vessel operating costs | 23,609 | 25,730 | (2,121 | ) | (8 | ) | ||||||||
Charterhire expense | 13,061 | 8,039 | 5,022 | 62 | ||||||||||
Vessel depreciation | 13,614 | 13,695 | (81 | ) | (1 | ) | ||||||||
General and administrative expense | 1,468 | 1,594 | (126 | ) | (8 | ) | ||||||||
Loss / write-down on assets held for sale | 28,992 | 7,353 | 21,639 | 294 | ||||||||||
Total operating expenses | $ | 80,744 | $ | 56,411 | $ | 24,333 | 43 | |||||||
Operating loss | $ | (35,539 | ) | $ | 4,262 | $ | (39,801 | ) | 934 |
Vessel revenue for the Company’s Kamsarmax Operations decreased to
TCE revenue (see Non-GAAP Financial Measures) for the Company’s Kamsarmax Operations was
Nine Months Ended | ||||||||||||||
Kamsarmax Operations: | 2020 | 2019 | Change | % Change | ||||||||||
TCE Revenue (in thousands) | $ | 45,205 | $ | 60,673 | $ | (15,468 | ) | (25 | ) | |||||
TCE Revenue / Day | $ | 8,640 | $ | 11,672 | $ | (3,032 | ) | (26 | ) | |||||
Revenue Days | 5,232 | 5,198 | 34 | 1 |
Kamsarmax Operations vessel operating costs were
Kamsarmax Operations charterhire expense was
Kamsarmax Operations depreciation was
General and administrative expense for the Company’s Kamsarmax Operations was
During the first nine months of 2020, the Company recorded a write down on assets held for sale of $29.0 million related to the classification of two vessels (SBI Bolero and SBI Rock) as held for sale and the agreement to sell the SBI Sousta at
Corporate
Certain general and administrative expenses the Company incurs, as well as all of its financial expenses and investment income or losses, are not attributable to a specific segment. Accordingly, these costs are not allocated to the Company’s segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were
The Company recorded a non-cash loss of approximately
Financial expenses, net of interest income decreased to
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Unaudited | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Vessel revenue | $ | 46,690 | $ | 63,227 | $ | 113,679 | $ | 164,315 | ||||||||
Operating expenses: | ||||||||||||||||
Voyage expenses | 1,697 | 501 | 4,517 | 846 | ||||||||||||
Vessel operating costs | 24,487 | 25,196 | 71,422 | 76,692 | ||||||||||||
Charterhire expense | 6,374 | 7,488 | 15,548 | 10,770 | ||||||||||||
Vessel depreciation | 14,090 | 13,533 | 39,113 | 40,803 | ||||||||||||
General and administrative expenses | 6,285 | 7,941 | 19,589 | 24,001 | ||||||||||||
Loss / write-down on assets sold or held for sale | 19,598 | (194 | ) | 36,607 | 12,041 | |||||||||||
Total operating expenses | 72,531 | 54,465 | 186,796 | 165,153 | ||||||||||||
Operating loss (income) | (25,841 | ) | 8,762 | (73,117 | ) | (838 | ) | |||||||||
Other income (expense): | ||||||||||||||||
Interest income | 18 | 553 | 190 | 1,227 | ||||||||||||
(Loss) income from equity investments | (3,534 | ) | 1,582 | (105,858 | ) | 70,227 | ||||||||||
Foreign exchange (loss) income | (113 | ) | 18 | (243 | ) | (33 | ) | |||||||||
Financial expense, net | (7,155 | ) | (12,843 | ) | (27,352 | ) | (41,013 | ) | ||||||||
Total other (expense) income | (10,784 | ) | (10,690 | ) | (133,263 | ) | 30,408 | |||||||||
Net loss | $ | (36,625 | ) | $ | (1,928 | ) | $ | (206,380 | ) | $ | 29,570 | |||||
(Loss) earnings per share: | ||||||||||||||||
Basic | $ | (3.12 | ) | $ | (0.28 | ) | $ | (23.34 | ) | $ | 4.36 | |||||
Diluted | $ | (3.12 | ) | $ | (0.28 | ) | $ | (23.34 | ) | $ | 4.25 | |||||
Basic weighted average number of common shares outstanding | 11,724 | 6,846 | 8,843 | 6,789 | ||||||||||||
Diluted weighted average number of common shares outstanding | 11,724 | 6,846 | 8,843 | 6,961 | ||||||||||||
Consolidated Balance Sheets
(Dollars in thousands)
Unaudited | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 40,220 | $ | 42,530 | ||||
Accounts receivable | 21,142 | 13,209 | ||||||
Prepaid expenses and other current assets | 7,147 | 9,547 | ||||||
Total current assets | 68,509 | 65,286 | ||||||
Non-current assets | ||||||||
Vessels, net | 1,277,383 | 1,271,993 | ||||||
Assets held for sale | 17,500 | 77,536 | ||||||
Equity investments | 23,857 | 173,298 | ||||||
Deferred financing costs, net | 2,410 | 2,982 | ||||||
Other assets | 39,056 | 74,464 | ||||||
Total non-current assets | 1,360,206 | 1,600,273 | ||||||
Total assets | $ | 1,428,715 | $ | 1,665,559 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Bank loans, net | $ | 4,809 | $ | 44,956 | ||||
Capital lease obligations | 35,940 | 29,159 | ||||||
Accounts payable and accrued expenses | 32,805 | 49,718 | ||||||
Total current liabilities | 73,554 | 123,833 | ||||||
Non-current liabilities | ||||||||
Bank loans, net | 244,545 | 332,613 | ||||||
Capital lease obligations | 356,693 | 321,646 | ||||||
Other liabilities | 135 | 12,500 | ||||||
Total non-current liabilities | 601,373 | 666,759 | ||||||
Total liabilities | 674,927 | 790,592 | ||||||
Shareholders’ equity | ||||||||
Preferred shares, | — | — | ||||||
Common shares, | 858 | 809 | ||||||
Paid-in capital | 1,802,296 | 1,717,144 | ||||||
Common shares held in treasury, at cost; 856,785 shares at | (56,720 | ) | (56,720 | ) | ||||
Accumulated deficit | (992,646 | ) | (786,266 | ) | ||||
Total shareholders’ equity | 753,788 | 874,967 | ||||||
Total liabilities and shareholders’ equity | $ | 1,428,715 | $ | 1,665,559 | ||||
Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)
Nine Months Ended | ||||||||
2020 | 2019 | |||||||
Operating activities | ||||||||
Net (loss) income | $ | (206,380 | ) | $ | 29,570 | |||
Adjustment to reconcile net (loss) income to net cash provided by | ||||||||
operating activities: | ||||||||
Restricted share amortization | 5,552 | 6,674 | ||||||
Vessel depreciation | 39,113 | 40,803 | ||||||
Amortization of deferred financing costs | 2,880 | 5,941 | ||||||
Write-off of deferred financing costs | 366 | 446 | ||||||
Loss / write-down on assets held for sale | 33,894 | 10,385 | ||||||
Net unrealized losses (gains) on investments | 106,730 | (68,606 | ) | |||||
Dividend income on equity investment | (872 | ) | (1,623 | ) | ||||
Drydocking expenditure | (16,606 | ) | (2,265 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Increase in accounts receivable | (7,933 | ) | (1,199 | ) | ||||
Decrease (increase) in prepaid expenses and other assets | 23,421 | (4,241 | ) | |||||
(Decrease) increase in accounts payable and accrued expenses | (27,817 | ) | 6,795 | |||||
Net cash (used in) provided by operating activities | (47,652 | ) | 22,680 | |||||
Investing activities | ||||||||
Equity investment | — | (1,500 | ) | |||||
Sale of equity investment | 42,711 | — | ||||||
Dividend income on equity investment | 872 | 1,623 | ||||||
Proceeds from sale of assets held for sale | 52,518 | 47,302 | ||||||
Scrubber payments | (42,495 | ) | (16,678 | ) | ||||
Net cash used in investing activities | 53,606 | 30,747 | ||||||
Financing activities | ||||||||
Proceeds from issuance of common stock | 82,254 | — | ||||||
Proceeds from issuance of long-term debt | 132,708 | 300,070 | ||||||
Repayments of long-term debt | (220,620 | ) | (332,052 | ) | ||||
Dividends paid | (2,606 | ) | (4,298 | ) | ||||
Debt issue costs paid | — | (4,508 | ) | |||||
Net cash provided by (used in) financing activities | (8,264 | ) | (40,788 | ) | ||||
(Decrease) increase in cash and cash equivalents | (2,310 | ) | 12,639 | |||||
Cash and cash equivalents, beginning of period | 42,530 | 67,495 | ||||||
Cash and cash equivalents, end of period | $ | 40,220 | $ | 80,134 | ||||
Other Operating Data (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Time charter equivalent revenue ($000’s) (1): | ||||||||||||||||
Vessel revenue | $ | 46,690 | $ | 63,227 | $ | 113,679 | $ | 164,315 | ||||||||
Voyage expenses | (1,697 | ) | (501 | ) | (4,517 | ) | (846 | ) | ||||||||
Time charter equivalent revenue | $ | 44,993 | $ | 62,726 | $ | 109,162 | $ | 163,469 | ||||||||
Time charter equivalent revenue attributable to: | ||||||||||||||||
Kamsarmax | $ | 18,712 | $ | 21,709 | $ | 45,205 | $ | 60,673 | ||||||||
Ultramax | 26,281 | 41,017 | 63,957 | 102,796 | ||||||||||||
$ | 44,993 | $ | 62,726 | $ | 109,162 | $ | 163,469 | |||||||||
Revenue days: | ||||||||||||||||
Kamsarmax | 1,845 | 1,651 | 5,232 | 5,198 | ||||||||||||
Ultramax | 2,943 | 3,469 | 8,411 | 10,269 | ||||||||||||
Combined | 4,788 | 5,120 | 13,643 | 15,467 | ||||||||||||
TCE per revenue day (1): | ||||||||||||||||
Kamsarmax | $ | 10,142 | $ | 13,149 | $ | 8,640 | $ | 11,672 | ||||||||
Ultramax | $ | 8,930 | $ | 11,824 | $ | 7,604 | $ | 10,010 | ||||||||
Combined | $ | 9,397 | $ | 12,251 | $ | 8,001 | $ | 10,569 |
(1) The Company defines Time Charter Equivalent (TCE) revenue as vessel revenues less voyage expenses. Such TCE revenue, divided by the number of the Company’s available days during the period, or revenue days, is TCE per revenue day, which is consistent with industry standards. TCE per revenue day is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts.
The Company reports TCE revenue, a non-GAAP financial measure, because (i) the Company believes it provides additional meaningful information in conjunction with vessel revenues and voyage expenses, the most directly comparable
Year Built | DWT | Vessel Type | Scrubber Installed ? | ||||||
SBI Samba | 2015 | 84,000 | Kamsarmax | Yes | |||||
SBI Rumba | 2015 | 84,000 | Kamsarmax | Yes | |||||
SBI Capoeira | 2015 | 82,000 | Kamsarmax | No | |||||
SBI Carioca | 2015 | 82,000 | Kamsarmax | Yes | |||||
SBI Conga | 2015 | 82,000 | Kamsarmax | No | |||||
SBI Sousta | 2016 | 82,000 | Kamsarmax | No | |||||
SBI Lambada | 2016 | 82,000 | Kamsarmax | No | |||||
SBI Reggae | 2016 | 82,000 | Kamsarmax | No | |||||
SBI Zumba | 2016 | 82,000 | Kamsarmax | Yes | |||||
SBI Macarena | 2016 | 82,000 | Kamsarmax | Yes | |||||
SBI Parapara | 2017 | 82,000 | Kamsarmax | Yes | |||||
SBI Mazurka | 2017 | 82,000 | Kamsarmax | Yes | |||||
SBI Swing | 2017 | 82,000 | Kamsarmax | Yes | |||||
SBI Jive | 2017 | 82,000 | Kamsarmax | Yes | |||||
SBI Lynx | 2018 | 82,000 | Kamsarmax | Yes | |||||
Total Kamsarmax | 1,234,000 | ||||||||
SBI Antares | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Athena | 2015 | 64,000 | Ultramax | Yes | |||||
SBI Bravo | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Leo | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Echo | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Lyra | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Tango | 2015 | 61,000 | Ultramax | No | |||||
SBI Maia | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Hydra | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Subaru | 2015 | 61,000 | Ultramax | Yes | |||||
SBI Pegasus | 2015 | 64,000 | Ultramax | No | |||||
SBI Ursa | 2015 | 61,000 | Ultramax | No | |||||
SBI Thalia | 2015 | 64,000 | Ultramax | No | |||||
SBI Cronos | 2015 | 61,000 | Ultramax | No | |||||
SBI Orion | 2015 | 64,000 | Ultramax | No | |||||
SBI Achilles | 2016 | 61,000 | Ultramax | No | |||||
SBI Hercules | 2016 | 64,000 | Ultramax | No | |||||
SBI Perseus | 2016 | 64,000 | Ultramax | No | |||||
SBI Hermes | 2016 | 61,000 | Ultramax | No | |||||
SBI Zeus | 2016 | 60,200 | Ultramax | No | |||||
SBI Hera | 2016 | 60,200 | Ultramax | No | |||||
SBI Hyperion | 2016 | 61,000 | Ultramax | No | |||||
SBI Tethys | 2016 | 61,000 | Ultramax | Yes | |||||
SBI Phoebe | 2016 | 64,000 | Ultramax | Yes | |||||
SBI Poseidon | 2016 | 60,200 | Ultramax | Yes | |||||
SBI Apollo | 2016 | 60,200 | Ultramax | Yes | |||||
SBI Phoenix | 2017 | 64,000 | Ultramax | No | |||||
SBI Gemini | 2015 | 64,000 | Ultramax | Yes | |||||
SBI Libra | 2017 | 64,000 | Ultramax | Yes | |||||
SBI Aries | 2015 | 64,000 | Ultramax | Yes | |||||
SBI Pisces | 2016 | 64,000 | Ultramax | No | |||||
SBI Virgo | 2017 | 64,000 | Ultramax | Yes | |||||
Total Ultramax | 1,987,800 | ||||||||
Total Owned or Finance Leased Vessels DWT | 3,221,800 |
Time chartered-in vessels
The Company currently time charters-in five Kamsarmax vessels. The terms of the contracts are summarized as follows:
Vessel Type | Year Built | DWT | Country of Build | Daily Base Rate | Earliest Expiry | |||||||||||
Kamsarmax | 2019 | 81,100 | Variable | (1 | ) | |||||||||||
Kamsarmax | 2019 | 81,100 | Variable | (2 | ) | |||||||||||
Kamsarmax | 2018 | 82,000 | $ | 12,500 | (3 | ) | ||||||||||
Kamsarmax | 2018 | 81,100 | Variable | (4 | ) | |||||||||||
Kamsarmax | 2015 | 81,100 | Variable | (5 | ) | |||||||||||
Total TC DWT | 406,400 |
(1) This vessel has been time chartered-in for 24 to 27 months at the Company’s option at 118% of the Baltic Exchange’s 74,000 DWT Panamax Index, or the BPI. The vessel was delivered to the Company in
(2) This vessel has been time chartered-in for 24 to 27 months at the Company’s option at 118% of the BPI. The vessel was delivered to the Company in
(3) This vessel has been time chartered-in for 24 months at
(4) This vessel has been time chartered-in for 24 to 27 months at the Company’s option at 118% of the BPI. The vessel was delivered to the Company in
(5) This vessel has been time chartered-in for 24 to 27 months at the Company’s option at 118% of the BPI. The vessel was delivered to the Company in
Conference Call on Results:
A conference call to discuss the Company’s results will be held at
There will also be a simultaneous live webcast over the internet, through the
Webcast URL: https://edge.media-server.com/mmc/p/6prhigw4
About
Non-GAAP Financial Measures
To supplement the Company’s financial information presented in accordance with accounting principles generally accepted in the
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net income (loss) and related per share amounts, as well as adjusted EBITDA and TCE Revenue are non-GAAP financial measures that the Company believes provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliations of EBITDA, adjusted net income (loss) and related per share amounts, and adjusted EBITDA. Please see “Other Operating Data” for a reconciliation of TCE revenue.
EBITDA (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||
Net (loss) income | $ | (36,625 | ) | (1,928 | ) | $ | (206,380 | ) | $ | 29,570 | ||||
Add Back: | ||||||||||||||
Net interest expense | 6,279 | 10,779 | 23,915 | 33,399 | ||||||||||
Depreciation and amortization (1) | 16,482 | 17,421 | 47,912 | 53,864 | ||||||||||
EBITDA | $ | (13,864 | ) | 26,272 | $ | (134,553 | ) | $ | 116,833 |
(1) Includes depreciation, amortization of deferred financing costs and restricted share amortization.
Adjusted net (loss) income (unaudited)
Three Months Ended | Three Months Ended | ||||||||||||||
In thousands, except per share data | 2020 | 2019 | |||||||||||||
Amount | Per share | Amount | Per share | ||||||||||||
Net loss | $ | (36,625 | ) | $ | (3.12 | ) | $ | (1,928 | ) | $ | (0.28 | ) | |||
Adjustments: | |||||||||||||||
Loss / write-down on assets | 19,598 | 1.67 | (194 | ) | (0.03 | ) | |||||||||
Total adjustments | $ | 19,598 | $ | 1.67 | $ | (194 | ) | $ | (0.03 | ) | |||||
Adjusted net loss | $ | (17,027 | ) | $ | (1.45 | ) | $ | (2,122 | ) | $ | (0.31 | ) |
Nine Months Ended | Nine Months Ended | |||||||||||||
In thousands, except per share data | 2020 | 2019 | ||||||||||||
Amount | Per share | Amount | Per share | |||||||||||
Net (loss) income | $ | (206,380 | ) | $ | (23.34 | ) | $ | 29,570 | $ | 4.25 | ||||
Adjustments: | ||||||||||||||
Loss / write-down on assets | 36,607 | 4.14 | 12,041 | 1.73 | ||||||||||
Write-off of deferred financing cost | 366 | 0.04 | 446 | 0.06 | ||||||||||
Total adjustments | $ | 36,973 | $ | 4.18 | $ | 12,487 | $ | 1.79 | ||||||
Adjusted net (loss) income | $ | (169,407 | ) | $ | (19.16 | ) | $ | 42,057 | $ | 6.04 |
Adjusted EBITDA (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||
Net (loss) income | $ | (36,625 | ) | $ | (1,928 | ) | $ | (206,380 | ) | $ | 29,570 | |||
Impact of adjustments | 19,598 | (194 | ) | 36,973 | 12,487 | |||||||||
Adjusted net (loss) income | (17,027 | ) | (2,122 | ) | (169,407 | ) | 42,057 | |||||||
Add Back: | ||||||||||||||
Net interest expense | 6,279 | 10,779 | 23,915 | 33,399 | ||||||||||
Depreciation and amortization (1) | 16,482 | 17,421 | 47,546 | 53,417 | ||||||||||
Adjusted EBITDA | $ | 5,734 | $ | 26,078 | $ | (97,946 | ) | $ | 128,873 |
(1) Includes depreciation, amortization of deferred financing costs and restricted share amortization.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, counterparty performance, ability to obtain financing and the availability of capital resources (including for capital expenditures) and comply with covenants in such financing arrangements, planned capital expenditures, our ability to successfully identify, consummate, integrate and realize the expected benefits from acquisitions and changes to our business strategy, fluctuations in the value of our investments, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the
Contact:Scorpio Bulkers Inc. +377-9798-5715 (Monaco ) +1-646-432-1675 (New York )
Source:
2020 GlobeNewswire, Inc., source