Safe Bulkers, Inc. Reports Second Quarter and First Half 2012 Results and Declares Quarterly Dividend

Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced yesterday its unaudited financial results for the three- and six-months periods ended June 30, 2012. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the second quarter of 2012.
Summary of Second Quarter 2012 Results
•    Net revenue for the second quarter of 2012 increased by 14% to $47.0 million from $41.2 million during the same period in 2011.
•    Net income for the second quarter of 2012 increased by 13% to $21.5 million from $19.1 million during the same period in 2011. Adjusted net income(1) for the second quarter of 2012 decreased by 7% to $23.7 million from $25.5 million, during the same period in 2011.
•    EBITDA(2) for the second quarter of 2012 increased by 24% to $31.6 million from $25.5 million during the same period in 2011. Adjusted EBITDA(1) for the second quarter of 2012 increased by 6% to $33.7 million from $31.9 million during the same period in 2011.
•    Earnings per share ("EPS") and Adjusted EPS(1) for the second quarter of 2012 was $0.28 and $0.31 respectively, calculated on a weighted average number of shares of 76,653,848, compared to $0.27 and $0.36, respectively, for the same period in 2011, calculated on a weighted average number of shares of 70,116,022.
•    The Company's Board of Directors declared a dividend of $0.15 per share for the second quarter of 2012.
Summary of Six Months Ended June 30, 2012 Results
•    Net revenue for the first six months of 2012 increased by 9.1% to $91.1 million from $83.5 million during the same period in 2011.
•    Net income for the first six months of 2012 decreased by 6.9% to $43.2 million from $46.4 million during the same period in 2011. Adjusted net income for the first six months of 2012 decreased by 12% to $46.5 million from $52.9 million during the same period in 2011.
•    EBITDA for the first six months of 2012 increased by 4% to $62.3 million from $59.9 million during the same period in 2011. Adjusted EBITDA for the first six months of 2012 decreased by 1% to $65.6 million from $66.4 million during the same period in 2011.
•    EPS and Adjusted EPS for the first six months of 2012 was $0.58 and 0.63, respectively, calculated on a weighted average number of shares of 74,261,399, compared to $0.68 and $0.78 for the same period in 2011, calculated on a weighted average number of shares of 68,010,508.
Fleet and Employment Profile
As of July 31, 2012, the Company's current fleet was comprised of 21 drybulk vessels with an average age of 4.2 years and the Company had contracted to acquire eight newbuild drybulk vessels with deliveries scheduled at various times through 2014.
In May 2012, we took delivery of the vessel Pedhoulas Builder, an 81,600 dwt newbuild Kamsarmax-class vessel.
Capital expenditure requirements and liquidity as of July 31, 2012
As of July 31, 2012, the remaining capital expenditure requirements for amounts due to shipyards or sellers of newbuilds, net of commissions, for the delivery of the Company's eight newbuilds amounted to $186.6 million, of which $48.2 million was scheduled to be paid in 2012, $59.6 million in 2013 and $78.8 million in 2014.
As of July 31, 2012, the Company had $11.3 million in cash and short-term time deposits, $5.4 million in long-term restricted cash, and estimated aggregate borrowing capacity of $224.1 million, consisting of $72.0 million in undrawn or committed loan facilities, $112.1 million available under existing revolving credit facilities and $40.0 million undrawn availability against the Company's $50.0 million floating rate note.
Additionally, the Company utilizes cash flow from operations generated by its contracted period time charters and has the option to borrow additional amounts secured by one or more of its seven debt-free newbuilds, upon their delivery to us.
Dividend Declaration
The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.15 per share payable on or about August 31, 2012 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on August 24, 2012.
The Company has 76,656,279 shares of common stock issued and outstanding as of August 6, 2012.
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: "Charter market conditions are challenging, while bank financing is generally scarce. Our revenues in the current depressed charter market have been supported by agreements entered into during earlier periods. In this environment, asset prices have dropped significantly offering acquisition opportunities attractive for companies like ours which have managed to avoid financial distress and comply with their debt covenants. Our management team cautiously monitors market conditions. We believe that having a young and modern fleet, which is expected to reach 29 vessels by 2014, will leave us well-positioned for the next shipping cycle.''
Source: Safe Bulkers Inc.