Monaco - April 23, 2018
Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers”, or the “Company”), today reported its results for the three months ended March 31, 2018.
The Company also announced today that its Board of Directors has declared a quarterly cash dividend of $0.02 per share on the Company’s common stock.
Results for the Three Months Ended March 31, 2018 and 2017
For the first quarter of 2018, the Company’s GAAP net loss was $5.8 million, or $0.08 loss per diluted share. For the same period in 2017, the Company’s GAAP net loss was $34.6 million, or $0.48 loss per diluted share. Total vessel revenues for the first quarter of 2018 were $54.3 million, compared to $34.7 million for the same period in 2017. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the first quarter of 2018 and 2017 were $20.4 million and a loss of $10.8 million, respectively (see Non-GAAP Financial Measures below).
While the first quarter of 2018 included no non-GAAP adjustments to net income, the Company’s first quarter 2017 net income included a loss/write off of vessels and assets held for sale of $17.7 million and the write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. Excluding these items, the Company’s first quarter 2017 adjusted net loss was $16.4 million, or $0.22 adjusted loss per diluted share. Adjusted EBITDA for the first quarter ended March 31, 2017 was a loss of $6.9 million (see Non-GAAP Financial Measures below).
TCE Revenue Earned during the First Quarter of 2018
• Our Kamsarmax fleet earned $12,881 per day
• Our Ultramax fleet earned $9,757 per day
Voyages Fixed thus far for the Second Quarter of 2018
• Kamsarmax fleet: approximately $13,250 per day for 56% of the days
• Ultramax fleet: approximately $11,925 per day for 48% of the days
Cash and Cash Equivalents
As of April 20, 2018, the Company had approximately $55.0 million in cash and cash equivalents.
Recent Significant Events
Share Repurchase Program
In the first quarter of 2018, the Company’s Board of Directors declared and the Company paid a quarterly cash dividend of $0.02 per share totaling approximately $1.5 million.
On April 20, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per share, payable on or about May 31, 2018, to all shareholders of record as of May 15, 2018. As of April 20, 2018, 75,971,175 shares were outstanding.
$12.8 Million Credit Facility
On April 3, 2018, the Company received a commitment for a loan facility of up to $12.75 million from a leading European financial institution to finance the Company’s Kamsarmax bulk carrier to be delivered from Jiangsu New Yangzijiang Shipbuilding Co Ltd in China in the third quarter of 2018. The loan facility will have a final maturity date of June 15, 2023 and bears interest at LIBOR plus a margin of 2.40% per annum. The terms and conditions will be similar to those set forth in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.
$19.0 Million Lease Financing
On April 17, 2018, the Company entered into a financing transaction in respect of one of its Ultramax vessels with an unaffiliated third party involving the sale and leaseback of the SBI Tango, a 2015 Japanese built Ultramax vessel, for consideration of approximately $19.0 million. As part of the transaction, the Company will make payments of $5,400 per day under a five-year bareboat charter agreement with the buyer. If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at the then prevailing swap rates would be LIBOR + 1.73%.
The transaction also provides the Company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement. This transaction, which shall be treated as a financial lease for accounting purposes, increases the Company’s liquidity by approximately $10.3 million after repayment of the vessel’s existing loan.
Scorpio Bulkers Inc. press release