MONACO — (Marketwired) — 04/28/15 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months ended March 31, 2015 and 2014.
Results for the three months ended March 31, 2015
For the three months ended March 31, 2015, the Company’s adjusted net loss was $16.8 million (see Non-GAAP Measures section below), or $0.10 basic and diluted loss per share, which excludes (i) a write down on assets held for sale of $31.8 million and (ii) the $3.5 million write off of a portion of the deferred financing costs of a credit facility, or $0.20 loss per share (see Non-GAAP Measures section below). For the three months ended March 31, 2015, the Company had a net loss of $52.1 million, or $0.30 basic and diluted loss per share. This loss includes the write down on assets held for sale of $31.8 million, a write off of $3.5 million of a portion of deferred financing costs accumulated on a credit facility for which the commitment was reduced pursuant to the removal from the facility of certain vessels that have been classified as held for sale, and the noncash amortization of stock-based compensation of $6.1 million.
For the three months ended March 31, 2014, the Company had a net loss of $10.7 million, or $0.08 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $5.1 million.
Explanation of Components of Financial Results for the First Quarter of 2015 and 2014
For the three months ended March 31, 2015 and 2014, the Company recorded a net loss of $52.1 million and $10.7 million, respectively.
Time charter equivalent, or TCE revenue, a Non-GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.
TCE revenue was $12.3 million for the three months ended March 31, 2015, associated with 20 vessels time chartered-in and eight vessel owned compared to TCE revenue of $2.4 million during the three months ended March 31, 2014, associated with 12 vessels time chartered-in. TCE revenue per day was $6,652 and $5,715 for the three months ended March 31, 2015 and 2014, respectively (see the breakdown of daily TCE averages below). The increase in TCE revenue during the three months ended March 31, 2015 compared to the prior year period is primarily attributable to the increase in the number of revenue days, which increased to 1,845 days during the three months ended March 31, 2015 compared to 423 days during the prior year period.
Vessel operating costs for the three months ended March 31, 2015 were $2.8 million related to three Kamsarmax vessels, four Ultramax vessels and one Capesize vessel that we owned during the three months ended March 31, 2015. The Company did not own any vessels for the three months ended March 31, 2014 and, accordingly, did not have any vessel operating costs during that period.
Charterhire expense was $16.0 million and $6.7 million for the three months ended March 31, 2015 and 2014, respectively, relating to the time chartered-in vessels including those described below. Such increase during the three months ended March 31, 2015 compared to the prior year period relates to a greater number of vessels time chartered-in during the current year period. See the Company’s Fleet List below for the terms of these agreements.
Depreciation for the three months ended March 31, 2015 was $1.6 million and relates to three Kamsarmax vessels, four Ultramax vessels and one Capesize vessel that we owned during the three months ended March 31, 2015. The Company did not own any vessels for the three months ended March 31, 2014 and, accordingly, did not incur any depreciation during that period.
General and administrative expense was $8.5 million for the three months ended March 31, 2015. Such amount included $6.1 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance. General and administrative expense was $6.9 million for the three months ended March 31, 2014, which includes $5.1 million of restricted stock amortization.
During the three months ended March 31, 2015 the Company recorded a loss of $31.8 million primarily associated with writing down four contracts to construct vessels that the Company has classified as held for sale during the three months ended March 31, 2015. These four contracts to construct vessels include one Kamsarmax construction contract and three contracts for construction of LR1 product tankers (see recent significant events, below).
During the three months ended March 31, 2015, the Company recorded a $3.5 million loss associated with writing off a portion of deferred financing costs accumulated on a credit facility for which the commitment was reduced pursuant to the removal from the facility of certain vessels that have been classified as held for sale.
Recent Significant Events
Agreements to Modify Existing Shipbuilding Contracts for Three Capesize Vessels
On March 4, 2015, the Company reached agreement with a shipyard in South Korea to modify existing newbuilding contracts for three Capesize vessels. The three contracts, two for vessels scheduled for delivery during the first quarter of 2016 and one for a vessel scheduled for delivery during the second quarter of 2016, will now provide for the construction of three LR1 product tankers, two of which will be scheduled for delivery during the second quarter of 2017 and one during the third quarter of 2017. The LR1 contracts were subsequently re-classified on the balance sheet as assets held for sale following the completion of customary documentation. The Company has no plans for any further contract conversions.
Agreements to Sell Vessels
On April 21, 2015, the Company announced that it has entered into agreements to sell three Capesize newbuilding dry bulk vessels, a Kamsarmax newbuilding dry bulk vessel and the three LR1 newbuilding product tankers described above for approximately $290 million in aggregate. The Capesize vessels are currently being constructed in Romania, and have expected delivery dates between the fourth quarter of 2015 and the second quarter of 2016. The Kamsarmax vessel is currently being constructed in China and has an expected delivery date in the first quarter of 2016.
On April 27, 2015, the Company announced that it has entered into agreements to sell two Capesize newbuilding dry bulk vessels and an Ultramax newbuilding dry bulk vessel for approximately $111 million in aggregate. The Capesize vessels are currently being constructed in China and South Korea, and have expected delivery dates between the third quarter of 2015 and the second quarter of 2016. The Ultramax vessel is currently being constructed in China and has an expected delivery date in the first quarter of 2016.
The three LR1 newbuilding product tankers and the Kamsarmax newbuilding vessel were classified as held for sale during the three months ended March 31, 2015 for which the Company recorded a write down on assets held for sale of $30.7 million, reflective of these sales. The loss on disposal of the five Capesize newbuilding vessels and one Ultramax newbuilding vessel is expected to be approximately $73 million, in aggregate, which will be recorded during the second quarter of 2015.
$409 Million Credit Facility
On December 30, 2014, the Company closed a $408.976 million senior secured credit facility arranged by two leading European financial institutions to finance a portion of the purchase price of 20 vessels (six Ultramax, nine Kamsarmax, and five Capesize vessels) with expected deliveries in 2015 and 2016. The facility has a final maturity of six years from the date of signing. Pursuant to the sale of three of the Capesize vessels contracts described above, and the addition of one Ultramax vessel to the facility, the facility is expected to be reduced by approximately $60 million to $73 million and will be used to finance a portion of the purchase price of 18 vessels (seven Ultramax, nine Kamsarmax and two Capesize vessels).
$240.3 Million Credit Facility
On January 15, 2015, the Company closed a previously announced $411.264 million senior secured credit facility with a group of financial institutions, which was subsequently reduced on March 26, 2015 by $171 million to $240.264 million due to the removal from financing under this facility of five Capesize newbuilding vessels that we have agreed to convert into product tankers. The proceeds of this facility are expected to finance a portion of the purchase price of seven Capesize vessels under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd. The facility matures in six years, and in certain circumstances up to 12 years, from the delivery of each financed vessel. Pursuant to the sale of one Capesize vessel contract described above, the facility is expected to be reduced by approximately $34 million and the facility will used to finance a portion of the purchase price of six Capesize vessels under construction.
$42 Million Credit Facility
On January 30, 2015, the Company closed a previously announced $42 million credit facility with a leading European financial institution to finance a portion of the purchase price of two Kamsarmax vessels (of which one Kamsarmax vessel was delivered in January 2015 to the Company from Imabari Shipbuilding Co. Ltd., Japan and one Kamsarmax vessel is under construction at Imabari Shipbuilding Co. Ltd., Japan). The facility may be drawn in two tranches, each of which has a final maturity of six years from the date of the respective vessel delivery from the yard.
$26 Million Credit Facility
On February 27, 2015, the Company closed a senior secured credit facility of $26 million with ABN AMRO Bank N.V., The Netherlands. The facility has been used to finance a portion of the purchase price of one Capesize vessel, which was delivered to the Company in Q1 2015. The facility shall mature at the earlier of (a) the date falling six months after the drawdown date; and (b) the date ten business days after the date on which the Chinese Ministry of Finance has approved insurance coverage to be provided by the China Export & Credit Insurance Corporation (“Sinosure”) in respect of the $230.3 Million Credit Facility discussed below and drawings can be made under such facility. The terms and conditions of the facility, including covenants, are similar to those in the Company’s existing credit facilities and customary for financings of this type.
$19.8 Million Credit Facility
On March 2, 2015, the Company closed a senior secured credit facility of up to $19.8 million. The facility was arranged by ABN AMRO Bank N.V., The Netherlands, with insurance cover provided from Sinosure. The facility was to be used to finance a portion of the purchase price of one Kamsarmax vessel currently under construction at Tsuneishi Group Zhoushan Shipyard, China for delivery in Q1 2016. This Kamsarmax was classified as held for sale as of March 31, 2015, and was sold during April 2015. Accordingly, this facility was terminated on April 20, 2015.
$230.3 Million Credit Facility
On March 2, 2015, the Company received a commitment from ABN AMRO Bank N.V. and The Export-Import Bank of China, for a loan facility of up to $230.3 million. This commitment finalizes a previously announced memorandum of understanding for a $234.9 million credit facility. This facility was arranged by ABN AMRO Bank N.V., The Netherlands, with insurance cover to be provided from Sinosure. This facility will be used to finance a portion of the purchase price of seven Capesize vessels (of which one vessel has been delivered and six vessels are currently under construction at Shanghai Waigaoqiao Shipbuilding Co., Ltd, China) for delivery between Q1 2015 and Q2 2016. The terms and conditions of this facility, including covenants, will be similar to those in the Company’s existing credit facilities and customary for financings of this type. The credit facility is pending approval from the Chinese Ministry of Finance on the insurance coverage to be provided by Sinosure, which is expected to be granted during July 2015. Pursuant to the sale of one Capesize vessel contract described above, the facility is expected to be reduced by approximately $33 million and the facility will used to finance a portion of the purchase price of six Capesize vessels under construction (of which one vessel has been delivered and five vessels are currently under construction).
Update on Fleet Financing
Including the credit facilities described above (but excluding the $26 Million Credit Facility), the Company has now either signed credit facility agreements for or received commitments for 62 of the vessels in its fleet, excluding the vessels which the Company intends to sell. In addition, the Company is in discussions with a few leading European financial institutions to finance a portion of the cost of our remaining four unfinanced dry bulk vessels. The terms and conditions of these facilities, for which commitments are expected during the first half of 2015, are consistent with those of the Company’s existing credit commitments. The closing of any resultant credit facilities would remain subject to credit approval and customary conditions precedent, including negotiation and execution of definitive documentation.
Newbuilding Vessels Deliveries
Through April 24, 2015 the Company has taken delivery of the following Newbuilding vessels during 2015:
- SBI Bravo, an Ultramax vessel, was delivered from Nantong COSCO KHI Ship Engineering Co., Ltd.
- SBI Athena, an Ultramax vessel, was delivered from Chengxi Shipyard Co., Ltd.
- SBI Samba, a Kamsarmax vessel, was delivered from Imabari Shipbuilding Co. Ltd.
- SBI Antares, an Ultramax vessel, was delivered from Nantong COSCO KHI Ship Engineering Co., Ltd.
- SBI Puro, a Capesize vessel, was delivered from Shanghai Waigaoqiao Shipbuilding Co., Ltd. The Company has agreed to time charter-out the SBI Puro to a major European charterer for 10-13 months at $13,800 per day.
- SBI Leo, an Ultramax vessel, was delivered from Dalian COSCO KHI Ship Engineering Co. Ltd.
Current Liquidity
As of April 24, 2015, the Company had $133.5 million in cash and cash equivalents.
Debt
We made the following drawdowns from our credit facilities during the three months ended March 31, 2015:
Drawdown amount
Credit facility ($ thousands) Collateral
---------------------------------------- ---------------- ---------------
1 $408.976 Million Credit Facility $ 14,988 SBI Athena
2 $330 Million Credit Facility 15,000 SBI Bravo
3 $330 Million Credit Facility 15,000 SBI Leo
4 $330 Million Credit Facility 15,000 SBI Antares
5 $42 Million Credit Facility 20,400 SBI Samba
6 $26 Million Credit Facility 26,000 SBI Puro
As of April 24, 2015, the Company’s outstanding debt balance, and amount available to be drawn, as adjusted to reflect the sales of vessels under construction described above, is as follows:
March 31,
2015 As of April 24, 2015
------------ -------------------------
Amount Amount Amount
outstanding outstanding available
------------ ------------ ------------
Senior Notes $ 73,625$ 73,625 $ -
$39.6 Million Credit Facility 32,725 32,725 -
$408.976 Million Credit Facility (1) 14,988 14,988 333,739
$330 Million Credit Facility (3) 45,000 45,000 270,000
$42 Million Credit Facility (2) 20,308 20,308 21,000
$19.8 Million Credit Facility (4) - - -
$67.5 Million Credit Facility - - 67,500
$240.3 Million Credit Facility (5) - - 206,124
$230.3 Million Credit Facility (6) - - 197,025
$26 Million Credit Facility (7) 26,000 26,000 -
------------ ------------ ------------
Total $ 212,646$ 212,646 1,095,388
============ ============
Repayment of $26 Million Senior
Secured Credit Facility (26,000)
------------
Total available $ 1,069,388
============
(1) As described above in this press release, this credit facility is
expected to be reduced by approximately $60 million to $73 million due
to the sale of three Capesize vessels that was to collateralize it,
and the addition of one Ultramax vessel to the facility. The amount
available disclosed in the table above reflects the $60 million
reduction only.
(2) As described above in this press release.
(3) One of the Ultramax vessels that was to collateralize this facility
has been sold, as described above, and the credit facility is expected
to be reduced by approximately $15 million.
(4) As described above in this press release, this credit facility was
terminated on April 20, 2015.
(5) As described above in this press release, this credit facility is
expected to be reduced by approximately $34 million pursuant to the
sale of one of the Capesize vessels that was to collateralize it.
(6) As described above in this press release, this credit facility is
expected to be reduced by approximately $33 million pursuant to the
sale of one of the Capesize vessels that was to collateralize it. In
addition, the credit facility is pending approval from the Chinese
Ministry of Finance on the insurance coverage to be provided by
Sinosure, which is expected to be granted during July 2015.
(7) As described above in this press release, this is a credit facility
which matures the earlier of (a) six months after the drawdown date or
(b) ten business days after the date of which the $230.3 Million
Credit Facility has been closed and can be drawn down. This financing
is short-term in nature and must be repaid to draw down on the $230.3
Million Credit Facility.
Newbuilding Program
Our Newbuilding Program consists of contracts for the construction of 63 dry bulk vessels, comprised of 28 Ultramax newbuildings, 21 Kamsarmax newbuilding and 14 Capesize newbuildings. Of this total, through March 31, 2015, we have taken delivery of one Capesize vessel, three Kamsarmax vessels and four Ultramax vessels. The aggregate construction price for the remaining 55 drybulk vessels is $1,962.1 million. Of this amount, $1,322.4 million remains unpaid as of April 24, 2015, and is scheduled to be paid in installments through the delivery dates of each vessel. The estimated future payment dates and amounts are as follows (1):
Q2 2015 $ 182.6 million(2)
Q3 2015 419.3
Q4 2015 160.4
Q1 2016 288.5
Q2 2016 211.6
Q3 2016 60.0
----------------
$ 1,322.4 million
================
(1) These are estimates only and are subject to change as construction
progresses.
(2) Relates to payments expected to be made from April 24, 2015 to June
30, 2015.
Vessels Under Construction To Be Sold
We also have contracts for 17 vessels which we intend to sell, consisting of five Capesize vessels under construction, two Kamsarmax vessels under construction, one Ultramax vessel under construction, six LR2 product tankers under construction (which were previously Capesize vessels under construction) and three LR1 product tankers under construction (which were previously Capesize vessels under construction). Through April 24, 2015, we have paid $309.9 million under these contracts, including payments made on the nine Capesize vessels under construction prior to their modification. These 17 contracts, including the nine contracts for product tankers, have an aggregate construction price of $862.4 million of which $570.8 million has not been paid as of April 24, 2015. Until these contracts are sold, the remaining installment payments under the terms of these contracts are estimated to be payable as follows (1):
Q2 2015 $ 5.6 million(2)
Q3 2015 92.7
Q4 2015 52.1
Q1 2016 160.2
Q2 2016 52.8
Q3 2016 75.7
Q4 2016 38.4
Q1 2017 27.4
Q2 2017 44.4
Q3 2017 21.5
----------------
$ 570.8 million
================
(1) These are estimates only and are subject to change as construction
progresses.
(2) Relates to payments expected to be made from April 24, 2015 to June
30, 2015.
Conference Call Details:
Tuesday, April 28, 2015 at 10:00 AM Eastern Daylight Time and 4:00 PM Central European Summer Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-(888)-206-4913 (U.S.) or 1 (913)-312-0640 (International). The conference participant passcode is 1608708. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.
Slides and Audio Webcast:
There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Webcast URL:http://www.visualwebcaster.com/event.asp?id=102221
Scorpio Bulkers Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollars in Thousands, Except Per Share Data)
Three Months Three Months
Ended Ended
March 31, 2015 March 31, 2014
-------------- --------------
Revenue:
Vessel revenue $ 12,270$ 5,467
-------------- --------------
Operating expenses:
Voyage expenses - 3,048
Vessel operating cost 2,846 -
Charterhire expense 16,023 6,679
Vessel depreciation 1,567 -
General and administrative expenses 8,481 6,897
Write down on assets held for sale 31,752 -
-------------- --------------
Total operating expenses 60,669 16,624
-------------- --------------
Operating loss (48,399) (11,157)
-------------- --------------
Other income (expense):
Interest income 68 524
Foreign exchange gain (loss) 69 (23)
Financial expense net (3,803) -
-------------- --------------
Total other income (3,666) 501
-------------- --------------
Net loss $ (52,065)$ (10,656)
============== ==============
Loss per common share- basic and diluted (1) $ (0.30)$ (0.08)
Weighted-average shares outstanding- basic
and diluted (1) 173,454,180 132,610,911
(1) Diluted weighted-average shares outstanding, which would include the
impact of restricted shares, for the three months ended March 31, 2015
and 2014, would be anti-dilutive since the Company is in a net loss
position. As such, there is no difference between basic and diluted
earnings per share for these periods.
Scorpio Bulkers Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in Thousands, Except Per Share Data)
December 31,
March 31, 2015 2014
-------------- --------------
Current assets
Cash and cash equivalents $ 146,962$ 272,673
Due from charterers 7,011 11,096
Due from related parties 31,277 31,277
Prepaid expenses and other current assets 2,716 3,872
Asset held for sale 99,765 43,781
-------------- --------------
Total current assets 287,731 362,699
-------------- --------------
Non-current assets
Vessels, net 273,927 66,633
Vessels under construction 776,245 866,844
Deferred financing costs, net 4,965 3,181
Other assets 34,346 24,848
-------------- --------------
Total non-current assets 1,089,483 961,506
-------------- --------------
Total assets $ 1,377,214$ 1,324,205
============== ==============
Liabilities and shareholders' equity
Current liabilities
Bank loans $ 35,428$ 3,300
Accounts payable and accrued expenses 10,254 17,042
Total current liabilities 45,682 20,342
-------------- --------------
Non-current liabilities
Bank loans 103,593 30,250
Senior Notes 73,625 73,625
-------------- --------------
Total non-current liabilities 177,218 103,875
-------------- --------------
Total liabilities 222,900 124,217
-------------- --------------
Shareholders' equity
Common stock, $0.01 par value per share;
authorized 450,000,000 shares; issued and
outstanding 180,470,939 and 180,299,695
shares as of March 31, 2015 and December
31, 2014, respectively 1,805 1,803
Paid-in capital 1,327,446 1,321,057
Accumulated deficit (174,937) (122,872)
-------------- --------------
Total shareholders' equity 1,154,314 1,199,988
-------------- --------------
Total liabilities and shareholders' equity $ 1,377,214$ 1,324,205
============== ==============
Scorpio Bulkers Inc. and Subsidiaries
Statements of Cash Flows (unaudited)
(Dollars in Thousands)
For the three For the three
months ended months ended
March 31, March 31,
2015 2014
------------- -------------
Operating activities
Net loss $ (52,065)$ (10,656)
Adjustment to reconcile net loss to net cash
used by operating activities:
Restricted stock amortization 6,064 5,079
Depreciation 1,567 -
Amortization of deferred financing costs 228 -
Write off of deferred financing cost 3,530 -
Write down on assets held for sale 31,752 -
Changes in operating assets and liabilities:
Increase (decrease) in amounts due from
charterers 1,433 (11,874)
(Increase) decrease in prepaid expenses and
other current assets 1,156 (2,026)
(Decrease) increase in accounts payable and
accrued expenses (4,169) 3,608
------------- -------------
Net cash used in operating activities (10,504) (15,869)
------------- -------------
Investing activities
Payments on assets held for sale (19,756) -
Payments for vessels and vessels under
construction (188,343) (231,514)
------------- -------------
Net cash used in investing activities (208,099) (231,514)
------------- -------------
Financing activities
Proceeds from issuance of common stock (239) 42,513
Proceeds from issuance of debt 106,388 (1,013)
Repayments of long term debt (917) -
Debt issue costs paid (12,340) -
------------- -------------
Net cash provided by financing activities 92,892 41,500
------------- -------------
Decrease in cash and cash equivalents (125,711) (205,883)
Cash at cash equivalents, beginning of period 272,673 733,896
------------- -------------
Cash and cash equivalents, end of period $ 146,962$ 528,013
============= =============
Scorpio Bulkers Inc. and Subsidiaries
Other Operating Data (unaudited)
(Dollars in Thousands, Except Per Day Data)
For the three For the three
months ended months ended
March 31, March 31,
2015 2014
------------- -------------
Time Charter Equivalent Revenue (1):
Vessel revenue $ 12,270$ 5,467
Voyage expenses - 3,048
------------- -------------
Time charter equivalent revenue $ 12,270$ 2,419
============= =============
Time charter equivalent revenue attributable to:
Capesize $ 679 $ -
Kamsarmax 7,128 2,233
Ultramax 4,463 186
------------- -------------
$ 12,270$ 2,419
============= =============
Revenue days (1):
Capesize 54 -
Kamsarmax 1,140 408
Ultramax 651 15
------------- -------------
Combined 1,845 423
============= =============
TCE per revenue day (1):
Capesize $ 12,676 $ -
Kamsarmax $ 6,252$ 5,469
Ultramax $ 6,855$ 12,400
Combined $ 6,652$ 5,715
(1) We define Time Charter Equivalent (TCE) revenue as voyage revenues
less voyage expenses. Such TCE revenue, divided by the number of our
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.
Fleet List as of April 24, 2015
Newbuilding Program
Owned vessels
Vessel Name Year Built DWT Vessel Type
----------------------------------------- ---------- ---------- ------------
SBI Puro 2015 180,000 Capesize
----------
Total Capesize 180,000
SBI Cakewalk 2014 82,000 Kamsarmax
SBI Charleston 2014 82,000 Kamsarmax
SBI Samba 2015 84,000 Kamsarmax
----------
Total Kamsarmax 248,000
SBI Antares 2015 61,000 Ultramax
SBI Athena 2015 64,000 Ultramax
SBI Bravo 2015 61,000 Ultramax
SBI Leo 2015 61,000 Ultramax
----------
Total Ultramax 247,000
----------
Total Owned Vessels DWT 675,000
==========
Vessels under construction
Capesize Vessels
Expected
Vessel Name Delivery (1) DWT Shipyard
------------------------------------ ------------ ---------- ------------
1 Hull H1310 - TBN SBI Valrico Q3-15 180,000 Waigaoqiao
2 Hull H1311 - TBN SBI Maduro Q3-15 180,000 Waigaoqiao
3 Hull H1365 - TBN SBI Corona Q1-16 180,000 Waigaoqiao
4 Hull H1366 - TBN SBI Diadema Q1-16 180,000 Waigaoqiao
5 Hull H1367 - TBN SBI Estupendo Q2-16 180,000 Waigaoqiao
6 Hull S1205 - TBN SBI Camacho Q2-15 180,000 Sungdong
7 Hull S1206 - TBN SBI Montesino Q3-15 180,000 Sungdong
8 Hull S1211 - TBN SBI Magnum Q3-15 180,000 Sungdong
9 Hull S1212 - TBN SBI Montecristo Q3-15 180,000 Sungdong
10 Hull S1213 - TBN SBI Aroma Q3-15 180,000 Sungdong
11 Hull S1214 - TBN SBI Cohiba Q4-15 180,000 Sungdong
12 Hull HN1058 - TBN SBI Behike Q4-15 180,000 Daehan
13 Hull HN1059 - TBN SBI Monterrey Q4-15 180,000 Daehan
----------
Capesize NB DWT 2,340,000
----------
Kamsarmax Vessels
Expected
Vessel Name Delivery(1) DWT Shipyard
------------------------------------ ------------ ---------- ------------
1 Hull S1681 - TBN SBI Rumba Q3-15 84,000 Imabari
2 Hull 1090 - TBN SBI Electra Q3-15 82,000 Yangzijiang
3 Hull 1091 - TBN SBI Flamenco Q3-15 82,000 Yangzijiang
4 Hull 1092 - TBN SBI Rock Q4-15 82,000 Yangzijiang
5 Hull 1093 - TBN SBI Twist Q1-16 82,000 Yangzijiang
6 Hull S1228 - TBN SBI Capoeira Q2-15 82,000 Hudong
7 Hull S1722A - TBN SBI Conga Q2-15 82,000 Hudong
8 Hull S1723A - TBN SBI Bolero Q3-15 82,000 Hudong
9 Hull S1229 - TBN SBI Carioca Q2-15 82,000 Hudong
10 Hull S1724A - TBN SBI Sousta Q3-15 82,000 Hudong
11 Hull S1725A - TBN SBI Reggae Q4-15 82,000 Hudong
12 Hull S1726A - TBN SBI Zumba Q1-16 82,000 Hudong
13 Hull S1231 - TBN SBI Macarena Q1-16 82,000 Hudong
14 Hull S1735A - TBN SBI Parapara Q2-16 82,000 Hudong
15 Hull S1736A - TBN SBI Mazurka Q2-16 82,000 Hudong
16 Hull S1230 - TBN SBI Lambada Q3-15 82,000 Hudong
17 Hull S1232 - TBN SBI Swing Q2-16 82,000 Hudong
18 Hull S1233 - TBN SBI Jive Q3-16 82,000 Hudong
----------
Kamsarmax NB DWT 1,478,000
----------
Ultramax Vessels
Expected
Vessel Name Delivery(1) DWT Shipyard
------------------------------------ ------------ ---------- ------------
1 Hull 1907 - TBN SBI Hera Q2-16 60,200 Mitsui
2 Hull 1906 - TBN SBI Zeus Q2-16 60,200 Mitsui
3 Hull 1911 - TBN SBI Poseidon Q2-16 60,200 Mitsui
4 Hull 1912 - TBN SBI Apollo Q2-16 60,200 Mitsui
5 Hull S870 - TBN SBI Echo Q2-15 61,000 Imabari
6 Hull S871 - TBN SBI Tango Q3-15 61,000 Imabari
7 Hull S-A098 - TBN SBI Achilles Q4-15 61,000 Imabari
8 Hull S-A089 - TBN SBI Cronos Q4-15 61,000 Imabari
9 Hull S-A090 - TBN SBI Hermes Q1-16 61,000 Imabari
10 Hull NE182 - TBN SBI Maia Q3-15 61,000 Nacks
11 Hull NE183 - TBN SBI Hydra Q3-15 61,000 Nacks
12 Hull NE194 - TBN SBI Hyperion Q2-16 61,000 Nacks
13 Hull NE195 - TBN SBI Tethys Q2-16 61,000 Nacks
14 Hull DE019 - TBN SBI Lyra Q2-15 61,000 Dacks
15 Hull DE020 - TBN SBI Subaru Q2-15 61,000 Dacks
16 Hull DE021 - TBN SBI Ursa Q3-15 61,000 Dacks
17 Hull CX0651 - TBN SBI Pegasus Q3-15 64,000 Chengxi
18 Hull CX0652 - TBN SBI Orion Q4-15 64,000 Chengxi
19 Hull CX0612 - TBN SBI Thalia Q4-15 64,000 Chengxi
20 Hull CX0653 - TBN SBI Hercules Q1-16 64,000 Chengxi
21 Hull CX0627 - TBN SBI Perseus Q1-16 64,000 Chengxi
22 Hull CX0655 - TBN SBI Samson Q2-16 64,000 Chengxi
23 Hull CX0613 - TBN SBI Phoebe Q3-16 64,000 Chengxi
24 Hull CX0656 - TBN SBI Phoenix Q3-16 64,000 Chengxi
----------
Ultramax NB DWT 1,484,800
----------
Total Newbuild DWT 5,302,800
==========
Vessel Under Construction – To Be Sold
Expected
Vessel Name Delivery(1) DWT Shipyard
------------------------------------ ------------ ---------- ------------
1 Hull S3120 - TBN SBI Parejo Q3-16 115,000 Sungdong
2 Hull S3121 - TBN SBI Tuscamina Q3-16 115,000 Sungdong
3 Hull H5023 - TBN SBI Panatela Q4-16 112,000 Daewoo
4 Hull H5024 - TBN SBI Robusto Q1-17 112,000 Daewoo
5 Hull H.5003 - TBN SBI Macanudo Q1-16 115,000 Daehan
6 Hull H.5004 - TBN SBI Cuaba Q2-16 115,000 Daehan
----------
Total LR2 NB DWT 684,000
----------
1 Hull S3122 - TBN SBI Lonsdale Q2-17 74,500 Sungdong
2 Hull S3123 - TBN SBI Partagas Q2-17 74,500 Sungdong
3 Hull S3124 - TBN SBI Toro Q3-17 74,500 Sungdong
----------
Total LR1 NB DWT 223,500
----------
Total Product Tankers NB DWT 907,500
----------
1 Hull H1059 - TBN SBI Churchill Q4-15 180,000 Daewoo
2 Hull H1060 - TBN SBI Perfecto Q1-16 180,000 Daewoo
3 Hull H1061 - TBN SBI Presidente Q2-16 180,000 Daewoo
4 Hull H1364 - TBN SBI Belicoso Q3-15 180,000 Waigaoqiao
5 Hull S1215 - TBN SBI Habano Q1-16 180,000 Sungdong
----------
Total Capesize NB DWT 900,000
----------
1 Hull SS164 - TBN SBI Salsa Q3-15 81,600 Tsuneishi
2 Hull SS179 - TBN SBI Merengue Q1-16 81,600 Tsuneishi
----------
Total Kamsarmax NB DWT 163,200
----------
1 Hull CX0654 - TBN SBI Kratos Q1-16 64,000 Chengxi
----------
Total Ultramax NB DWT 64,000
----------
17 Total Vessels Held for Sale DWT 2,034,700
==========
As used in this earnings release “Dacks” refers to Dalian COSCO KHI Ship Engineering Co. Ltd., “Daehan” refers to Daehan Shipbuilding Co., Ltd., “Daewoo” refers to Daewoo Mangalia Heavy Industries S.A.,”Chengxi” refers to Chengxi Shipyard Co., Ltd., “Hudong” refers to Hudong-Zhonghua Shipbuilding (Group) Co., Inc., “Imabari” refers to Imabari Shipbuilding Co. Ltd., “Mitsui” refers to Mitsui Engineering & Shipbuilding Co. Ltd., “Nacks” refers to Nantong COSCO KHI Ship Engineering Co., Ltd., “Sungdong” refers to Sungdong Shipbuilding & Marine Engineering Co., Ltd., “Tsuneishi” refers to Tsuneishi Group (Zhoushan) Shipbuilding Inc., “Waigaoqiao” refers to Shanghai Waigaoqiao Shipbuilding Co., Ltd., and “Yangzijiang” refers to Jiangsu Yangzijiang Shipbuilding Co. Ltd.
(1) Expected delivery date relates to quarter during which each vessel is
currently expected to be delivered from the shipyard.
Time chartered-in vessels
The Company has time chartered-in 13 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:
Year Earliest
Vessel Type Built DWT Where Built Daily Base Rate Expiry
----------------- ----- -------- ----------- --------------- ----------
Post-Panamax 2012 98,700 China $13,000 15-Oct-16 (1)
Post-Panamax 2009 93,000 China See Note (2) 9-May-15 (2)
Post-Panamax 2011 93,000 China $9,500 11-Aug-15 (3)
Kamsarmax 2014 82,500 South Korea $12,000 23-Jul-15 (4)
Kamsarmax 2012 82,000 South Korea $15,500 23-Jul-17 (5)
Kamsarmax 2011 81,500 South Korea $15,000 15-Jan-16 (6)
Panamax 2004 77,500 China $14,000 3-Jan-17 (7)
Panamax 2014 76,000 China See Note (8) 19-Jun-15 (8)
Ultramax 2010 61,000 Japan $14,200 1-Apr-17 (9)
Supramax 2010 58,000 China $14,250 12-Dec-15 (10)
Supramax 2008 58,000 China $12,250 13-Jun-16 (11)
Supramax 2015 55,000 Japan $14,000 27-Jan-18 (12)
Handymax 2002 48,500 Japan $12,000 31-Jan-17 (13)
--------
Total TC DWT 964,700
========
(1) This vessel has been time chartered-in for 21 to 25 months at the
Company's option at $13,000 per day. The Company has the option to
extend this time charter for one year at $14,000 per day. This vessel
was delivered February 22, 2015.
(2) This vessel has been time chartered-in for ten to 14 months at the
Company's option at a rate of 90% of the Baltic Panamax 4TC Index. The
Company has the option to extend this time charter for an additional
ten to 14 months at the same rate of hire. The vessel was delivered on
July 9, 2014.
(3) This vessel has been time chartered-in for 11 to 13 months at the
Company's option at $9,500 per day. The Company has the option to
extend this time charter for one year at $11,500 per day. The vessel
was delivered on September 11, 2014.
(4) This vessel has been time chartered-in for 11 to 14 months at the
Company's option at $12,000 per day. The Company has the option to
extend this time charter for one year. The vessel was delivered on
August 22, 2014.
(5) This vessel has been time chartered-in for 39 to 44 months at the
Company's option at $15,500 per day. The Company has the option to
extend this time charter for one year at $16,300 per day. The vessel
was delivered on April 23, 2014.
(6) This vessel has been time chartered-in for 23 to 28 months at the
Company's option at $15,000 per day. The Company has the option to
extend the charter for an additional 11 to 13 months at $16,000 per
day. This vessel was delivered on February 15, 2014.
(7) This vessel has been time chartered-in for 32 to 38 months at the
Company's option at $14,000 per day. The vessel was delivered on May
3, 2014.
(8) This vessel has been time chartered-in for 10 to 13 months at
Company's option at $5,000 per day for the first 40 days and $10,000
thereafter, per day. The Company has the option to extend the charter
for an additional year. The vessel was delivered on August 10, 2014.
(9) This vessel has been time chartered-in for three years at $14,200 per
day. The Company has options to extend the charter for up to three
consecutive one year periods at $15,200 per day, $16,200 per day and
$17,200 per day, respectively. This vessel was delivered on April 13,
2014.
(10) This vessel has been time chartered-in for 20 to 24 months at the
Company's option at $14,250 per day. The Company has the option to
extend the charter for an additional ten to 12 months at $14,850 per
day. This vessel was delivered on April 12, 2014.
(11) This vessel has been time chartered-in for 21 to 25 months at the
Company's option at $12,250 per day. The Company has the option to
extend this time charter for one year at $13,000 per day. The vessel
was delivered on September 13, 2014.
(12) This vessel has been time chartered-in for three years at $14,000 per
day. The Company has options to extend the charter for up to two
consecutive one year periods at $15,000 per day and $16,000 per day,
respectively. This vessel was delivered January 27, 2015.
(13) This vessel has been time chartered-in for 34 to 37 months at the
Company's option at $12,000 per day. The Company has options to extend
the charter for up to three consecutive one year periods at $12,750
per day, $13,600 per day and $14,800 per day, respectively. This
vessel was delivered on March 31, 2014.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently owns eight vessels, consisting of one Capesize, three Kamsarmax vessels and four Ultramax vessels. The Company also time charters-in 13 dry bulk vessels (one Handymax, one Ultramax, three Supramax, two Panamax, three Kamsarmax and three Post-Panamax vessels) and, after giving effect to the recent sale of the 11 newbuilding contracts described above, has contracted for 56 dry bulk vessels consisting of 24 Ultramax, 19 Kamsarmax (including one vessel held for sale), and 13 Capesize vessels, from shipyards in Japan, South Korea, and China. The Company has also contracted for six LR2 product tankers that are currently classified as held for sale, from shipyards in South Korea and Romania. Upon final delivery of all of the vessels the owned fleet is expected to have a total carrying capacity of approximately 6.0 million deadweight tonnes. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.
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.
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, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, 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 Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Non-GAAP Measures
This press release describes adjusted net income, which is not a measure prepared in accordance with GAAP. The Non-GAAP measure presented in this press release as we believe that it provides investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These Non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with GAAP.
Adjusted net loss (dollars in thousands, except per share data)
For the three months ended March 31,
2015 2014
------------------- --------------------
Amount per share Amount per share
--------- --------- --------- ---------
Net loss $ 52,065$ 0.30$ (10,656)$ 0.08
Adjustments:
Write down of assets held for
sale 31,752 0.18 - -
Write off of deferred financing
cost 3,530 0.02 - -
--------- --------- --------- ---------
Total adjustments 35,282 0.20 - -
--------- --------- --------- ---------
Adjusted net loss $ 16,783$ 0.10$ (10,656)$ 0.08
========= ========= ========= =========
Contact: Scorpio Bulkers Inc. +377-9798-5715 (Monaco) +1-646-432-1675 (New York)
Source: Scorpio Bulkers Inc.
