MONACO — (Marketwired) — 03/04/14 — Scorpio Bulkers Inc. (NYSE: SALT) (OSLO-OTC: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months ended December 31, 2013 and for the period from March 20, 2013 (date of inception) to December 31, 2013.
Results for the three months ended December 31, 2013
For the three months ended December 31, 2013, the Company had a net loss of $3.6 million, or $0.04 basic and diluted loss per share.
For the three months ended December 31, 2013, the Company had no vessels in operation. As such, the Company had no revenues, voyage expenses or vessel related expenses. General and administrative expense was $4.8 million for the three months ended December 31, 2013, most of which relates to amortization of stock-based compensation and salaries of New York and Monaco based personnel, including officers. Amortization of stock-based compensation was $3.4 million for the three months ended December 31, 2013.
Results for the Period from March 20, 2013 (date of inception) to December 31, 2013
For the period from March 20, 2013 (date of inception) to December 31, 2013, the Company had a net loss of $6.3 million, or $0.16 basic and diluted loss per share.
For the period from March 20, 2013 (date of inception) to December 31, 2013, the Company had no vessels in operation. As such, the Company had no revenues, voyage expenses or vessel related expenses. General and administrative expense was $5.5 million for the period from March 20, 2013 (date of inception) to December 31, 2013, the majority of which relates to amortization of stock-based compensation and salaries of New York and Monaco based personnel, including officers. Amortization of stock-based compensation was $3.4 million for the period from March 20, 2013 (date of inception) to December 31, 2013.
Emanuele Lauro, Chairman of the Board and Chief Executive Officer, commented, “We have seen improvements in dry bulk rates over the past year, particularly in the fourth quarter of 2013. We believe rates will increase over the next few years, and our fleet of 74 newbuilding dry bulk vessels are poised to be delivered into favorable rate environments. Also, in anticipation of an increase in rates, we have time chartered-in ten modern dry bulk vessels at favorable rates.”
Recent Significant Events
Underwriters Exercise Option to Purchase Additional Shares
In January 2014, the underwriters in the Company’s initial public offering, which closed on December 17, 2013, exercised in full their option to purchase an additional 4,695,000 common shares at the public offering price of $9.75 per share. The sale of these common shares resulted in net proceeds to the Company of approximately $42.6 million, after deducting underwriters’ discounts and commissions.
Newbuilding vessel orders
In January 2014, the Company announced that it had entered into agreements for the purchase of 20 Capesize dry bulk vessels and two Kamsarmax dry bulk vessels. The total purchase price for these 22 vessels is approximately $1,171 million and the deliveries of the vessels are expected to occur between the first quarter of 2015 and the third quarter of 2016.
Time chartered-in vessels
In February 2014, the Company announced that that it has agreed to time charter-in ten dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:
Time Chartered-In vessels
Year
Vessel Type Built DWT Where Built Daily Base Rate Earliest Expiry
Post-Panamax 2010 93,000 China $13,250 28-Oct-14 (1)
Kamsarmax 2012 81,500 South Korea $14,500 31-Dec-14 (2)
Kamsarmax 2011 81,500 South Korea $15,000 31-Jan-16 (3)
Kamsarmax 2012 81,000 South Korea $15,000 28-Feb-15 (4)
Kamsarmax 2012 79,500 China $14,000 1-Jan-15 (5)
Panamax 2014 77,000 Japan $16,000 31-Mar-15 (6)
Panamax 2009 76,500 Japan $15,900 23-Jun-14 (7)
Ultramax 2010 61,000 Japan $14,200 1-Apr-17 (8)
Supramax 2010 58,000 China $14,250 31-Dec-16 (9)
Supramax 2015 55,000 Japan $14,000 30-Jun-18 (10)
------------ ----- ------- ------------ --------------- ---------------
Total TC DWT 744,000
(1) This vessel has been time chartered-in for eight to ten months at
Company's option at $13,250 per day. The vessel was delivered on February
23, 2014.
(2) This vessel has been time chartered-in for ten to twelve months at
Company's option at $14,500 per day. The vessel was delivered on February 7,
2014.
(3) 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.
(4) This vessel has been time chartered-in for twelve to fourteen months at
Company's option at $15,000 per day. The vessel was delivered on February
10, 2014.
(5) This vessel has been time-chartered in for 11 to 14 month at the
Company's option at $14,000 per day. The Company has the option to extend
the charter for an additional 11 to 14 months at $14,750 per day. This
vessel was delivered on February 23, 2014.
(6) This vessel has been time chartered-in for twelve to thirteen months at
Company's option at $16,000 per day. The vessel is expected to be delivered
by the end of March 2014.
(7) This vessel has been time chartered-in for five to seven months at
Company's option at $15,900 per day. The vessel was delivered on January 23,
2014.
(8) 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 is expected to be delivered during April
2014.
(9) This vessel has been time-chartered in for 20 to 24 month at the
Company's option at $14,250 per day. The Company has the option to extend
the charter for an additional 10 to 12 months at $14,850 per day. This
vessel is expected to be delivered during the second quarter of 2014.
(10) 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 is expected to be delivered during the first half of 2015.
Completion of Exchange Offer
On February 12, 2014, the Company completed its offer to exchange an aggregate of 96,065,411 unregistered common shares issued in equity private placements between July and October 2013 for an equivalent number of registered common shares. Pursuant to the exchange offer, holders of 95,766,779 unregistered common shares tendered such shares in exchange for registered common shares representing participation of 99.7%. The Company expects to terminate the Oslo OTC listing of its common shares during the second quarter of 2014.
$67.5 million Loan Facility
On February 25, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility (the Facility) of up to $67.5 million. The Facility will be used to finance up to 60% of the purchase price upon delivery of two Ultramax and two Kamsarmax vessels currently under construction. The Facility has a final maturity of seven years from the date of delivery of each vessel. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.
Conference Call
The Company will have a conference call on March 4, 2014 at 11:00 AM Eastern Standard Time and 5:00 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888) 259-8724 (U.S.) or 1(913) 312-1477 (International). The conference participant passcode is 5083888. 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.
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=98293
Current Liquidity
As of March 3, 2014, the Company had $668 million in cash and cash equivalents.
Newbuilding Program
The aggregate purchase price of our 74 vessels contracted to be constructed is approximately $2,765.5 million. As of March 3, 2014, we have paid a total of $476.4 million in installment payments due under our shipbuilding contracts for our Initial Fleet. The remaining $2,289.1 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 28 Ultramax newbuildings, 23 Kamsarmax newbuildings and 23 Capesize newbuildings. The estimated future payment dates and amounts including the newbuilding contracts signed in 2014 are as follows*:
Installments by Quarter
Q1 2014 $ 175.7 million **
Q2 2014 118.5 million
Q3 2014 50.5 million
Q4 2014 34.1 million
Q1 2015 179.6 million
Q2 2015 139.2 million
Q3 2015 471.1 million
Q4 2015 339.5 million
Q1 2016 315.3 million
Q2 2016 343.4 million
Q3 2016 122.2 million
-----------
Total $ 2,289.1 million
===========
* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from March 4, 2014 to March 31, 2014.
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Consolidated Statement of Operations
(Dollars in Thousands, Except Per Share Data)
(unaudited)
Period from
March 20,
Three months 2013 (date of
ended inception) to
December 31, December 31,
2013 2013
Revenue:
Vessel revenue $ - $ -
------------- -------------
Operating expenses:
Voyage expenses - -
Vessel operating expenses - -
Depreciation and amortization - -
General and administrative expenses 4,829 5,505
------------- -------------
Total operating expenses 4,829 5,505
------------- -------------
Operating loss (4,829) (5,505)
------------- -------------
Other income:
Interest income 322 341
Foreign exchange gain (loss) 945 (1,135)
Other expense, net (8) (8)
------------- -------------
Total other income 1,259 (802)
------------- -------------
Net loss $ (3,570)$ (6,307)
============= =============
Loss per common share- basic and diluted (1) $ (0.04)$ (0.16)
Weighted-average shares outstanding- basic and
diluted (1) 91,021,923 39,924,201
(1) Diluted weighted-average shares outstanding, which would include the
impact of restricted shares, for the three months ended December 31, 2013
and for the period from March 20, 2013 (date of inception) to December 31,
2013 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
(a development stage company)
Consolidated Balance Sheet
(Dollars in Thousands, Except Per Share Data)
(unaudited)
Assets December 31, 2013
-----------------
Current assets
Cash and cash equivalents $ 733,896
Prepaid expenses and other current assets 61
-----------------
Total current assets 733,957
-----------------
Non-current assets
Vessels under construction 371,692
Other assets 35
-----------------
Total non-current assets 371,727
-----------------
Total assets $ 1,105,684
=================
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued expenses $ 1,472
-----------------
Total current liabilities 1,472
-----------------
Non-current liabilites -
-----------------
Total liabilities 1,472
-----------------
Shareholders' equity
Common stock, $0.01 par value per share; authorized
450,000,000 shares; 133,402,431 shares issued and
outstanding shares as of December 31, 2013 1,334
Paid-in capital 1,109,185
Deficit accumulated during the development stage (6,307)
-----------------
Total shareholders' equity 1,104,212
-----------------
Total liabilities and shareholders' equity $ 1,105,684
=================
See notes to consolidated financial statements.
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Consolidated Statement of Cash Flows
(Dollars in Thousands)
(unaudited)
Period from
March 20,
Three Months 2013 (date of
Ended inception) to
December 31, December 31,
2013 2013
Operating activities
Net loss $ (3,570)$ (6,307)
Restricted stock amortization 3,359 3,359
Increase in prepaid expenses and other current
assets (57) (61)
Increase in other assets (35) (35)
Increase in accounts payable and accrued
expenses 172 807
------------- -------------
Net cash used in operating activities (131) (2,237)
------------- -------------
Investing activities
Payments for vessels under construction (301,639) (371,692)
------------- -------------
Net cash used in investing activities (301,639) (371,692)
------------- -------------
Financing activities
Proceeds from issuance of common stock 862,623 1,107,825
------------- -------------
Net cash provided by financing activities 862,623 1,107,825
------------- -------------
Increase in cash and cash equivalents 560,853 733,896
Cash at cash equivalents, beginning of period 173,043 -
------------- -------------
Cash and cash equivalents, end of period $ 733,896$ 733,896
============= =============
Fleet List as of March 3, 2014
Newbuilds Under Construction
Capesize Expected
Vessel Name Delivery (1) DWT Shipyard
Shanghai Waigaoqiao Shipbuilding
1 SBI Puro Q1-15 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
2 SBI Valrico Q2-15 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
3 SBI Maduro Q3-15 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
4 SBI Belicoso Q4-15 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
5 SBI Corona Q1-16 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
6 SBI Diadema Q2-16 180,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
7 SBI Estupendo Q3-16 180,000 Co., Ltd.
Sungdong Shipbuilding & Marine
8 SBI Montesino Q2-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
9 SBI Magnum Q3-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
10 SBI Montecristo Q3-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
11 SBI Aroma Q3-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
12 SBI Cohiba Q4-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
13 SBI Habano Q4-15 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
14 SBI Lonsdale Q1-16 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
15 SBI Partagas Q1-16 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
16 SBI Parejo Q2-16 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
17 SBI Toro Q2-16 180,000 Engineering Co., Ltd.
Sungdong Shipbuilding & Marine
18 SBI Tuscamina Q2-16 180,000 Engineering Co., Ltd.
Daewoo Mangalia Heavy Industries
19 SBI Churchill Q4-15 180,000 S.A.
Daewoo Mangalia Heavy Industries
20 SBI Perfecto Q4-15 180,000 S.A.
Daewoo Mangalia Heavy Industries
21 SBI Presidente Q1-16 180,000 S.A.
Daewoo Mangalia Heavy Industries
22 SBI Panatela Q1-16 180,000 S.A.
Daewoo Mangalia Heavy Industries
23 SBI Robusto Q2-16 180,000 S.A.
Capesize NB DWT 4,140,000
Kamsarmax
Expected
Vessel Name Delivery (1) DWT Shipyard
Shanghai Waigaoqiao Shipbuilding
1 SBI Cakewalk Q2-14 82,000 Co., Ltd.
Shanghai Waigaoqiao Shipbuilding
2 SBI Charleston Q3-14 82,000 Co., Ltd.
3 SBI Samba Q1-15 84,000 Imabari Shipbuilding Co., Ltd.
4 SBI Rumba Q3-15 84,000 Imabari Shipbuilding Co., Ltd.
Jiangsu Yangzijiang Shipbuilding
5 SBI Electra Q3-15 82,000 Co., Ltd.
Jiangsu Yangzijiang Shipbuilding
6 SBI Flamenco Q3-15 82,000 Co., Ltd.
Jiangsu Yangzijiang Shipbuilding
7 SBI Rock Q4-15 82,000 Co., Ltd.
Jiangsu Yangzijiang Shipbuilding
8 SBI Twist Q1-16 82,000 Co., Ltd.
Tsuneishi Group (Zhoushan)
9 SBI Salsa Q3-15 81,600 Shipbuilding Inc.
Tsuneishi Group (Zhoushan)
10 SBI Merengue Q1-16 81,600 Shipbuilding Inc.
11 SBI Capoeira Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
12 SBI Conga Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
13 SBI Bolero Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
14 SBI Carioca Q4-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
15 SBI Sousta Q4-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
16 SBI Reggae Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
17 SBI Lambada Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
18 SBI Zumba Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
19 SBI Macerena Q2-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
20 SBI Swing Q3-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
21 SBI Jive Q3-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
22 SBI Parapara Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
23 SBI Mazurka Q2-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
Kamsarmax NB DWT 1,889,200
Ultramax
Expected
Vessel Name Delivery (1) DWT Shipyard
1 SBI Echo Q2-15 61,000 Imabari Shipbuilding Co., Ltd.
2 SBI Cronos Q3-15 61,000 Imabari Shipbuilding Co., Ltd.
3 SBI Tango Q4-15 61,000 Imabari Shipbuilding Co., Ltd.
4 SBI Hermes Q1-16 61,000 Imabari Shipbuilding Co., Ltd.
Mitsui Engineering & Shipbuilding
5 SBI Hera Q2-16 60,200 Co., Ltd.
Mitsui Engineering & Shipbuilding
6 SBI Zeus Q2-16 60,200 Co., Ltd.
Mitsui Engineering & Shipbuilding
7 SBI Poseidon Q3-16 60,200 Co., Ltd.
Mitsui Engineering & Shipbuilding
8 SBI Apollo Q3-16 60,200 Co., Ltd.
Nantong COSCO KHI Ship Engineering
9 SBI Bravo Q1-15 61,000 Co. Ltd.
Nantong COSCO KHI Ship Engineering
10 SBI Antares Q1-15 61,000 Co. Ltd.
Nantong COSCO KHI Ship Engineering
11 SBI Maia Q3-15 61,000 Co. Ltd.
Nantong COSCO KHI Ship Engineering
12 SBI Hydra Q3-15 61,000 Co. Ltd.
Nantong COSCO KHI Ship Engineering
13 SBI Hyperion Q2-16 61,000 Co. Ltd.
Nantong COSCO KHI Ship Engineering
14 SBI Tethys Q2-16 61,000 Co. Ltd.
Dalian COSCO KHI Ship Engineering
15 SBI Leo Q2-15 61,000 Co. Ltd.
Dalian COSCO KHI Ship Engineering
16 SBI Lyra Q3-15 61,000 Co. Ltd.
Dalian COSCO KHI Ship Engineering
17 SBI Subaru Q3-15 61,000 Co. Ltd.
Dalian COSCO KHI Ship Engineering
18 SBI Ursa Q4-15 61,000 Co. Ltd.
19 SBI Athena Q1-15 64,000 Chengxi Shipyard Co. Ltd.
20 SBI Pegasus Q3-15 64,000 Chengxi Shipyard Co. Ltd.
21 SBI Orion Q4-15 64,000 Chengxi Shipyard Co. Ltd.
22 SBI Thalia Q4-15 64,000 Chengxi Shipyard Co. Ltd.
23 SBI Hercules Q1-16 64,000 Chengxi Shipyard Co. Ltd.
24 SBI Kratos Q1-16 64,000 Chengxi Shipyard Co. Ltd.
25 SBI Perseus Q2-16 64,000 Chengxi Shipyard Co. Ltd.
26 SBI Samson Q2-16 64,000 Chengxi Shipyard Co. Ltd.
27 SBI Phoebe Q2-16 64,000 Chengxi Shipyard Co. Ltd.
28 SBI Phoenix Q3-16 64,000 Chengxi Shipyard Co. Ltd.
Ultramax NB DWT 1,734,800
74 Total Newbuild DWT 7,764,000
(1) Expected delivery date relates to quarter during which each vessel is
currently expected to be delivered from the shipyard.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently has ten time chartered-in dry bulk vessels (one Ultramax, two Supramax, two Panamax, four Kamsarmax and one Post-Panamax vessels) and has contracted and agreed to purchase 74 dry bulk vessels consisting of 28 Ultramax, 23 Kamsarmax and 23 Capesize vessels to be delivered starting from the second quarter of 2014 from shipyards in Japan, Korea, China and Romania. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately eight 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,” “intends,” “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.
Contact: Scorpio Bulkers Inc. +377-9798-5715 (Monaco) +1-646-432-1675 (New York)
Source: Scorpio Bulkers Inc.
