-- The Company reported net income of $35.24 million for the third
quarter of 2008 compared to net income of $0.94 million for the third
quarter of 2007.
-- Voyage and time charter revenues were $65.18 million for the third
quarter of 2008. This figure includes revenues of $16.89 million
attributable to the amortization of the fair value of below/above market
acquired time charters.
-- Earnings per share, basic and diluted for the third quarter of 2008
were $0.63 and $0.62, respectively. These figures are based on a weighted
average of 55,873,973 shares outstanding, basic and on a weighted average
of 56,971,504 shares outstanding, diluted in the third quarter of 2008.
Nine Months ended September 30, 2008
-- The Company reported net income of $83.54 million for the nine months
ended September 30, 2008 compared to net income of $1.80 million for the
nine months ended September 30, 2007.
-- Voyage and time charter revenues were $166.10 million for the nine
months ended September 30, 2008. This figure includes revenues of $51.81
million attributable to the amortization of the fair value of below/above
market acquired time charters.
-- Earnings per share, basic and diluted for the nine months ended
September 30, 2008 were $1.63 and $1.54, respectively. These figures are
based on a weighted average of 51,201,845 shares outstanding, basic and on
a weighted average of 54,200,802 shares outstanding, diluted in the nine
months ended September 30, 2008.
We commenced operations on December 3, 2007. Included in this release are
our unaudited interim consolidated condensed income statements for the
three and nine month periods ended September 30, 2007 and 2008, unaudited
condensed balance sheets as at December 31, 2007 and September 30, 2008 and
unaudited interim consolidated condensed cash flow statements for the nine
month periods ended September 30, 2007 and 2008. During the period from
the Company's inception (May 13, 2005) to the date it commenced operations
(December 3, 2007), the Company was a development stage enterprise.
The unaudited interim consolidated condensed income statements, balance
sheets, and cash flow statements presented herein include the accounts of
Star Bulk Carriers Corp. and its wholly owned subsidiaries and of its
predecessor Star Maritime Acquisition Corp. ("Star Maritime").
Star Maritime was organized under the laws of the State of Delaware on
May 13, 2005 as a blank check company formed to acquire, through a merger,
capital stock exchange, asset acquisition or similar business combination,
one or more assets or target businesses in the shipping industry.
On November 27, 2007, Star Maritime obtained shareholder approval for the
acquisition of the initial fleet of eight drybulk carriers and for
effecting the Redomiciliation Merger whereby Star Maritime merged with and
into Star Bulk with Star Bulk as the surviving entity. The Redomiciliation
Merger was completed on November 30, 2007 as a result of which each
outstanding share of Star Maritime common stock was converted into the
right to receive one share of Star Bulk common stock and each outstanding
warrant of Star Maritime was assumed by Star Bulk with the same terms and
restrictions except that each became exercisable for common stock of Star
Bulk. Star Bulk's common stock and warrants are listed on the Nasdaq Global
Market under the symbols "SBLK" and "SBLKW" respectively.
Akis Tsirigakis, President and CEO of Star Bulk commented: "I'm pleased to
report a profitable third quarter 2008 in line with our expectations, the
fourth consecutive profitable quarter since we commenced operations in
December 2007. We have consistently implemented our business strategy in
order to achieve our objective of generating stable revenues despite the
volatility of charter rates in the drybulk sector. In this context, we
expanded our fleet from 8 to 12 vessels without compromising our focus on
maintaining moderate leverage and we have succeeded in securing what we
believe are stable and predictable cash flows by entering our vessels into
period employment. Our strong results for the third quarter and nine months
of 2008 are the product of this strategy.
"We believe we maintain a strong position in the current turbulent market
environment. At this time, we have available liquidity of over $50 million
in cash, a moderate debt level and have fixed our vessels on period
employment. We face no issues with our loan covenants and enjoy an
excellent working relationship with our lending institutions. We do not
have commitments to purchase newbuilding vessels or similar capital
expenditures that would require us to obtain additional financing.
Therefore, we are confident in our ability to meet our financial
commitments for the foreseeable future.
"We have contracted for 100% of our operating days in 2008, 74% in 2009 and
64% in 2010 under time charters thereby reducing our exposure to the
volatility of the shipping markets. We maintain a diversified charter
portfolio with no more than two vessels committed to a single charterer,
thereby limiting our exposure to counterparty risk. We aim to further
manage counterparty risk by communicating with our charterers in an effort
to be kept abreast of market developments.
"Our approach to structuring our dividend in respect of the third quarter
of 2008 in the form of cash and the remaining half in the form of newly
issued shares conveys our continued belief in the financial health of our
Company. This approach aims to continue to reward our shareholders while at
the same time further reinforcing our financial position by conserving a
significant amount of valuable cash which can be redeployed to enhance
shareholder value for the longer term. As previously announced, management
and our directors will reinvest all of their cash dividends into newly
issued shares in a private placement, which further demonstrates our and
their confidence in the Company.
"The demand for core dry bulk commodities is linked to the need for
infrastructure development of emerging economies and therefore we believe
this trend will continue. At the same time, the credit crunch will affect
vessel supply as significant cancellations of newbuildings are expected and
vessel scrapping may increase as well. Such developments help towards a
healthier balance between vessel supply and demand once world commerce
resumes with renewed availability of credit."
George Syllantavos, CFO of Star Bulk commented: "On September 30, 2008, our
net debt stood at $287 million, which we believe affords us significant
flexibility in the current market environment. Since then, our liquidity
has been further enhanced with the sale of the Star Iota for $18.3 million.
We believe that our current liquidity of in excess of $50 million in cash
and together with our expected cash flow generation will provide sufficient
cushion over and above simply meeting our scheduled debt obligations and
capital expenditures.
"We have continued to implement our share and warrant repurchase program,
repurchasing 700,000 shares of common stock in the third quarter 2008 and
an additional 225,000 shares in the fourth quarter 2008 to date. Since we
announced our $50 million repurchase program in January 2008, we have
invested to date approximately $12.9 million, leaving $37.1 million of
additional repurchasing capacity. We continue to believe that at current
trading levels of our common stock in the public markets, redeployment of a
portion of available cash to repurchase shares remains an accretive
proposition.
"Third quarter 2008 earnings reflect the effect of increased repairs
expenditure for the Star Alpha. Moreover, the benefit of the high first
year charter rates for the Star Cosmo and Star Ypsilon are not mirrored in
the financials since revenue accounting entries per U.S. GAAP are based on
the average rate of each vessel's three-year staggered rate schedule.
"Excluding non-cash items, such as vessel impairment, amortization of fair
value of below/above market acquired time charters and amortization of
stock based compensation our Net income for the third quarter 2008 and for
the nine months period ended September 30, 2008 would be $17.8 million and
$38 million, respectively."
Fleet Profile (As of November 24, 2008)
Vessel Name Type DWT Year Built
----------- ---- --- ----------
Star Alpha Capesize 175,075 1992
Star Beta Capesize 174,691 1993
Star Sigma Capesize 184,400 1991
Star Ypsilon Capesize 150,940 1991
Star Gamma Supramax 53,098 2002
Star Delta Supramax 52,434 2000
Star Epsilon Supramax 52,402 2001
Star Zeta Supramax 52,994 2003
Star Theta Supramax 52,425 2003
Star Kappa Supramax 52,055 2001
Star Omicron Supramax 53,489 2005
Star Cosmo Supramax 52,247 2005
Grand Total 12 1,106,250
We commenced operations during the fourth quarter of 2007 (December 3,
2007) and therefore we are unable to present a meaningful comparison of our
first nine months and/or third quarter of 2008 and 2007 results.
Third Quarter 2008 Results
For the quarter ended September 30, 2008, Voyage Revenues amounted to
$65.18 million and Operating Income amounted to $37.64 million. Net Income
for the third quarter of 2008 was $35.24 million representing $0.63
earnings per share calculated on 55,873,973 weighted average number of
shares, basic and $0.62 earnings per share calculated on 56,971,504
weighted average number of shares, diluted.
The above Net Income figure includes:
-- Gain of $1.02 million, or $0.02 per basic and diluted share, in
connection with the sale of the vessel Star Iota.
-- Amortization of fair value of below/above market acquired time
charters of $16.89 million, or $0.30 per basic and diluted share,
respectively, attributable to the amortization of the fair value of time
charters attached to vessels acquired, which are amortized over the
remaining period of the time charter as increases to net revenue.
-- Expenses of $0.44 million, or $0.01 per basic and diluted share
relating to the amortization of stock based compensation recognized in
connection with the vesting portion of a total of 315,000 restricted common
shares issued to directors.
Excluding all the above items above for the quarter ended September 30,
2008, Net Income would have amounted to $17.77 million, or $0.32 earnings
per share calculated on 55,873,973 weighted average number of shares, basic
and $0.31 earnings per share calculated on 56,971,504 weighted average
number of shares, diluted.
EBITDA for the third quarter of 2008 was $51.64 million. Adjusted EBITDA
for the same period excluding all the above items was $34.17 million.
Please see later in this release for a reconciliation of EBITDA and
adjusted EBITDA to net cash provided by cash flows from operating
activities.
An average of 12.1 vessels were owned and operated during the third quarter
of 2008, earning an average Time Charter Equivalent, or TCE rate of $62,156
per day. Adjusted to exclude the effect of the amortization of time
charters attached to vessels acquired at above or below market rates, the
TCE rate for the third quarter of 2008 was $45,756. We refer you to the
information under the heading "TCE rate and adjusted TCE rate" later in
this release for further information regarding our calculation of TCE rate.
Nine Months ended September 30, 2008 Results
For the nine months ended September 30, 2008, Voyage Revenues amounted to
$166.10 million and Operating Income amounted to $88.53 million. Net
Income for the nine months ended September 30, 2008 was $83.54 million
representing $1.63 earnings per share calculated on 51,201,845 weighted
average number of shares, basic and $1.54 earnings per share calculated on
54,200,802 weighted average number of shares, diluted.
The above Net Income figure includes:
-- Vessel impairment loss of $3.63 million, or $0.07 per basic and
diluted share, in connection with the sale of the vessel Star Iota.
-- Amortization of fair value of below/above market acquired time
charters of $51.81 million, or $1.01 and $0.96 per basic and diluted share,
respectively, attributable to the amortization of the fair value of time
charters attached to vessels acquired, which are amortized over the
remaining period of the time charter as increases to net revenue.
-- Expenses of $2.66 million, or $0.05 per basic and diluted share,
respectively, relating to the amortization of stock based compensation
recognized in connection with the vesting of a portion of a total of
315,000 restricted common shares issued to directors.
Excluding all the above items for the nine months ended September 30, 2008,
Net Income would have amounted to $38 million representing $0.74 earnings
per share calculated on 51,201,845 weighted average number of shares, basic
and $0.70 earnings per share calculated on 54,200,802 weighted average
number of shares, diluted.
EBITDA for the nine months ended September 30, 2008 was $123.54 million.
Adjusted EBITDA for the same period excluding all the above items was
$78.01 million. Please see later in this release for a reconciliation of
EBITDA and adjusted EBITDA to net cash provided by cash flows from
operating activities.
An average of 10.3 vessels were owned and operated during the nine months
ended September 30, 2008, earning an average TCE rate of $63,489 per day.
Adjusted to exclude the effect of the amortization of time charters
attached to vessels acquired at above or below market rates, the time
charter equivalent rate for the nine months ended September 30, 2008 was
$43,353. We refer you to the information under the heading "TCE rate and
adjusted TCE rate" later in this release for further information regarding
our calculation of TCE rate.
Fleet Developments
Vessel deliveries
On September 18, 2008, the Company took delivery of the Capesize dry bulk
carrier vessel Star Ypsilon which the Company had agreed to acquire on June
3, 2008 for approximately $87.2 million. The vessel is chartered for a
period of approximately three years, with the charter expiring in July
2011.
On October 6, 2008, the Company delivered the Star Iota, a Panamax bulk
carrier to its buyers. The Company had previously entered into an agreement
to sell the Star Iota for approximately $18.4 million.
Following the above transactions, Star Bulk's fleet is currently comprised
of 12 vessels of an average age of 9.5 years with a total capacity of
1,106,250 dwt including 4 Capesize and 8 Supramax vessels.
New Charter Party Agreement
The Star Beta has entered into a short term period employment with Brazil's
Companhia Vale do Rio Doce (Vale) for a minimum of two and a maximum of
four months at the gross daily rate of $15,500 for the first 50 days and
$25,000 for the days beyond 50 plus a repositioning ballast bonus of
$525,000.
Currently, the Company has secured 100% of its operating days in 2008, 74%
in 2009 and 64% in 2010 under time charters.
Other Developments
Star Bulk commenced an arbitration proceeding as complainant against
Oldendorff Gmbh & Co. KG of Germany ("Oldendorff"), seeking damages
resulting from Oldendorff's repudiation of a charter relating to the Star
Beta. The Star Beta had been time chartered by a subsidiary of Star Bulk
to Industrial Carriers Inc. of Ukraine ("ICI"). Under that time charter,
ICI was obligated to pay a gross daily charter hire rate of $106,500 until
February 2010. In January 2008, ICI sub-chartered the vessel to Oldendorff
for one year at a gross daily charter hire rate of $130,000 until February
2009. In October 2008, ICI assigned its rights and obligations under the
sub-charter to a subsidiary of Star Bulk in exchange for ICI being released
from the remaining term of the ICI charter. According to press reports,
ICI subsequently filed for protection from its creditors in a Greek
insolvency proceeding. Oldendorff notified Star Bulk that it considers the
assignment of the
sub-charter to be an effective repudiation of the sub-charter by ICI. Star
Bulk believes that the assignment was valid and that Oldendorff has
erroneously repudiated the sub-charter.
On November 3, 2008, the SEC declared effective a Registration Statement on
Form F-3 relating to the resale of shares held by F5 Capital, the nominee
of TMT Co. Ltd. ("TMT") . In August 2008, TMT alleged that it had
suffered unspecified damages arising from an alleged breach by the Company
of a purported obligation under the Master Agreement, dated January 12,
2007. As of the date hereof, no claim has been filed by TMT or any
affiliate thereof against the Company.
Share Buyback Program Update
The Company, under the share and warrant repurchase program announced on
January 24, 2008 has repurchased as of November 24, 2008 977,000 shares of
common stock for $7,458,828 (average $7.63 per share) and 1,362,500
warrants for $5,474,363 (average $4.02 per warrant). During the third
quarter, the Company has repurchased 700,000 shares of common stock for
$5,667,420 (average $8.10 per share). Moreover, post quarter-end and during
the month of October 2008, the Company purchased an additional 225,000
shares of common stock for $1,204,702.50 (average $5.35 per share).
The Company has paid an aggregate of $12,933,191 for the repurchased
securities leaving $37,066,809 of repurchasing capacity in Star Bulk's
$50,000,000 share and warrant buyback program.
Dividend Payment
On November 17, 2008, the Company declared a cash and stock dividend on its
common stock totaling $0.36 per common share. The dividend payment
consists of a cash portion in the amount of $0.18 per share with the
remaining half of the dividend payable in the form of newly issued common
shares. The amount of newly issued shares will be based on the volume
weighted average price of Star Bulk's shares on the Nasdaq Global Market
during the five trading days before November 25, 2008. The dividend will be
payable on or about December 1, 2008 to stockholders of record on November
28, 2008.
The Company also announced that management and directors who currently hold
approximately 10.3 million of the Company's common shares have committed to
reinvest the cash portion of their dividend into newly issued shares in a
private placement at the same weighted average price, thereby electing to
effectively receive the full amount of their dividend in the form of newly
issued shares.
By paying a portion of this quarterly dividend in the form of newly issued
shares, the Company has limited the cash outlay to approximately $8 million
and conserved $11.6 million of cash.
Summary of Selected Data
(TCE rate in Dollars in thousands)
Three months Nine months
Ended Ended
September 30, September 30,
2008 2008
------------ ------------
Average number of vessels(1) 12.1 10.3
Number of vessels 13 13
Average age of operational fleet (in years) (2) 10.6 10.6
Ownership days (3) 1,116 2,818
Available days (4) 1,056 2,629
Voyage days for fleet (5) 1,030 2,573
Fleet Utilization (6) 92% 91%
Time charter equivalent rate(7) 62,156 63,489
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number
of calendar days in that period.
(2) Average age of operational fleet is calculated as at September 30,
2008.
(3) Ownership days are the total calendar days each vessel in the fleet was
owned by Star Bulk for the relevant period.
(4) Available days for the fleet are the total calendar days the vessels
were in possession for the relevant period after subtracting for off-hire
days with major repairs dry-docking or special or intermediate surveys or
transfer of ownership.
(5) Voyage days are the total days the vessels were in our possession for
the relevant period after subtracting all off-hire days incurred for any
reason (including off-hire for dry-docking, major repairs, special or
intermediate surveys).
(6) Fleet utilization is calculated by dividing voyage days by ownership
days for the relevant period and takes into account the dry-docking
periods.
(7) Time charter equivalent rate, or TCE rate, is a measure of the average
daily revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE rate is determined by dividing voyage revenues (net of
voyage expenses) or time charter equivalent revenue or TCE revenue by
voyage days for the relevant time period. Voyage expenses primarily consist
of port, canal and fuel costs that are unique to a particular voyage, which
would otherwise be paid by the charterer under a time charter contract, as
well as commissions. TCE rate is a standard shipping industry performance
measure used primarily to compare period-to-period changes in a shipping
company's performance despite changes in the mix of charter types (i.e.,
spot charters, time charters and bareboat charters) under which the vessels
may be employed between the periods. We refer you to the information under
the heading "TCE rate and adjusted TCE rate" later in this release for
further information regarding our calculation of TCE rate.
During the nine months ended September 30, 2008, our fleet utilization was
significantly affected by the dry-docking and upgrading expenses of the
five vessels, Star Beta, Star Iota, Star Theta, Star Delta and Star Alpha
which resulted in 190 off-hire days. Excluding off-hire days due to
scheduled dry-dockings, fleet utilization would amount to approximately 98%
for third quarter and nine months period ended September 30, 2008,
respectively.
TCE rate and adjusted TCE rate
We report TCE revenues, a non-GAAP measure, because management believes it
provides additional meaningful information in conjunction with voyage
revenues, the most directly comparable GAAP measure and because management
uses TCE revenues in making decisions regarding the deployment and use of
its vessels and in evaluating their financial performance. TCE rate is
also 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 despite changes in the mix of charter types (i.e.,
spot charters, time charters and bareboat charters) under which the vessels
may be employed between the periods and because the Company believes that
it presents useful information to investors.
The Company excluded amortization of the fair value of below/above market
acquired time charters agreements, to derive the adjusted TCE rate.
The following table reflects the calculation of our TCE rates and adjusted
TCE rates as reflected in the unaudited interim consolidated condensed
income statements for the three and nine month periods ended September 30,
2008:
Three months Nine months
(Dollars in thousands) Ended Ended
September 30, September 30,
2008 2008
------------- -------------
Voyage revenues 65,179 166,100
Voyage expenses (1,158) (2,743)
Time Charter equivalent revenues 64,021 163,357
Total voyage days for fleet 1,030 2,573
------------- -------------
Time charter equivalent (TCE) rate 62,156 63,489
============= =============
Voyage revenues 65,179 166,100
Less:
Amortization of fair value of above/below
market acquired time charter agreements (16,892) (51,811)
Voyage expenses (1,158) (2,743)
Adjusted Time Charter equivalent revenues 47,129 111,546
Total voyage days for fleet 1,030 2,573
------------- -------------
Adjusted Time charter equivalent (TCE) rate 45,756 43,353
============= =============
EBITDA and adjusted EBITDA Reconciliation
Star Bulk Carriers Corp. considers EBITDA to represent net income before
interest, taxes, depreciation and amortization. EBITDA does not represent
and should not be considered as an alternative to net income or cash flow
from operations, as determined by United States generally accepted
accounting principles, or U.S. GAAP, and our calculation of EBITDA may not
be comparable to that reported by other companies. EBITDA is included
herein because it is a basis upon which the Company assesses its liquidity
position; it is used by our lenders as a measure of our compliance with
certain loan covenants; and because the Company believes that it presents
useful information to investors regarding the Company's ability to service
and/or incur indebtedness.
The Company excluded amortization of the fair value of above/below market
acquired time charters associated with time charters attached to vessels
acquired the vessel impairment adjustment relating to the sale of Star Iota
and expenses relating to the amortization of
stock-based compensation recognized during the period to derive adjusted
EBITDA.
The following table reconciles net cash provided by operating activities to
EBITDA and adjusted EBITDA:
Three months Nine months
(Dollars in thousands) Ended Ended
September 30, September 30,
2008 2008
------------- -------------
Net cash provided by operating activities 36,045 83,692
Net increase (decrease) in current assets 618 2,500
Net decrease in current liabilities,
excluding current portion of long term debt (4,864) (12,954)
Amortization of fair value of above/below
market acquired time charter agreements 16,892 51,811
Amortization of deferred Finance fees (66) (147)
Vessel impairment adjustment 1,017 (3,625)
Equity Incentive plan compensation expenses (436) (2,658)
Other non-cash 31 (43)
Net Interest expense 2,403 4,966
------------- -------------
EBITDA 51,640 123,542
============= =============
Less:
Amortization of fair value of above/below
market acquired time charter agreements (16,892) (51,811)
Vessel impairment adjustment (1,017) -
Plus:
Stock - based compensation 436 2,658
Vessel impairment loss - 3,625
------------- -------------
Adjusted EBITDA 34,167 78,014
============= =============
Financial Statements
The Unaudited Interim Consolidated Condensed Income Statements, Balance
Sheets, and Cash Flow Statements include the accounts of Star Bulk Carriers
Corp. and its wholly owned subsidiaries and of its predecessor Star
Maritime Acquisition Corp.
Income Statements
The following are Star Bulk Carriers Corp.'s Unaudited Interim Consolidated
Condensed Income Statements for the three and the nine month periods ended
September 30, 2007 and 2008:
3-month 9-month 3-month 9-month
period period period period
(Expressed in thousands of ended ended ended ended
U.S. dollars except for September September September September
share and per share data) 30, 2007 30, 2007 30, 2008 30, 2008
---------- ---------- ---------- ----------
Unaudited Unaudited Unaudited Unaudited
REVENUES:
Voyage revenues - - 65,179 166,100
---------- ---------- ---------- ----------
Voyage expenses - - 1,158 2,743
Vessel operating expenses - - 9,413 19,746
Drydocking expenses - - 837 7,229
Depreciation 1 2 13,993 35,039
Management fees - - 477 1,067
Vessel impairment
adjustment - - (1,017) 3,625
General and administrative
expenses 248 1,704 2,682 8,126
---------- ---------- ---------- ----------
Operating (loss) income (249) (1,706) 37,636 88,525
---------- ---------- ---------- ----------
Interest and finance costs - - (2,617) (5,859)
Interest income 1,192 3,503 214 893
Other - - 11 (22)
---------- ---------- ---------- ----------
Total other income
(expenses), net 1,192 3,503 (2,392) (4,988)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income 943 1,797 35,244 83,537
========== ========== ========== ==========
Earnings per share, basic 0.03 0.06 0.63 1.63
========== ========== ========== ==========
Earnings per share, diluted 0.03 0.06 0.62 1.54
========== ========== ========== ==========
Weighted average number of
shares outstanding, basic 29,026,924 29,026,924 55,873,973 51,201,845
========== ========== ========== ==========
Weighted average number of
shares outstanding,
diluted 29,026,924 29,026,924 56,971,504 54,200,802
========== ========== ========== ==========
Balance Sheet
The following are Star Bulk Carriers Corp.'s unaudited Consolidated
Condensed Balance Sheets as at December 31, 2007 and September 30, 2008:
(Expressed in thousands of U.S. dollars
except for share and per share data) December September
31, 30,
2007 2008
----------- -----------
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents 18,985 4,894
Trade accounts receivable - 584
Inventories 598 763
Prepaid expenses and other receivables 299 918
Due from related party 4
Due from managers - 1,068
Vessel held-for-sale - 16,579
----------- -----------
Total Current Assets 19,882 24,810
----------- -----------
FIXED ASSETS
Advances for vessels to be acquired 118,242 -
Vessels and other fixed assets, net 262,946 837,299
----------- -----------
Total Fixed Assets 381,188 837,299
----------- -----------
OTHER NON-CURRENT ASSETS
Deferred finance charges 600 1,478
Due from managers 120 180
Fair value of above market acquired time charter
agreements 1,952 15,650
Restricted cash - 13,010
----------- -----------
TOTAL ASSETS 403,742 892,427
=========== ===========
LIABILITIES & STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of long term debt - 44,500
Accounts payable 168 2,497
Due to related party 480 1,112
Accrued liabilities 1,493 5,808
Due to managers - 115
Deferred revenue 916 4,110
----------- -----------
Total Current Liabilities 3,057 58,142
----------- -----------
NON-CURRENT LIABILITIES
Long term debt - 260,500
Fair value of below market acquired time charter
agreements 25,307 51,872
Accrued liabilities - 1,717
Other non-current liabilities - 43
----------- -----------
Total Non-current Liabilities 25,307 314,132
----------- -----------
STOCKHOLDERS’ EQUITY
Preferred Stock; $0.01 par value, authorized
25,000,000 shares; none issued or outstanding at
December 31, 2007 and September 30, 2008 - -
Common Stock, $0.01 par value, 100,000,000 shares
authorized; 42,516,433 and 54,652,400 shares
issued and outstanding at December 31, 2007 and
September 30, 2008, respectively 425 546
Additional paid in capital 368,454 472,384
Retained earnings 6,499 47,223
----------- -----------
Total Stockholders’ Equity 375,378 520,153
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 403,742 892,427
=========== ===========
(Expressed in thousands of U.S. dollars)
Nine months Ended
September 30,
------------------------
2007 2008
Cash Flows from Operating Activities: (Unaudited) (Unaudited)
Net income 1,797 83,537
Adjustments to reconcile net income to net cash
provided by/(used in) operating activities:
Depreciation 2 35,039
Amortization of fair value of above market
acquired time charter agreements - 727
Amortization of fair value of below market
acquired time charter agreements - (52,538)
Amortization of deferred finance charges - 147
Vessel impairment loss - 3,625
Stock - based compensation - 2,658
Other non cash charges - 43
Changes in operating assets and liabilities:
(Increase)/Decrease in:
Value of trust account (4,944) -
Trade accounts receivable - (584)
Inventories - (165)
Prepaid expenses and other receivables 31 (619)
Due from related party (4)
Due from Managers - (1,128)
Increase/(Decrease) in:
Accounts payable (209) 2,329
Due to related party - 632
Accrued liabilities - 4,967
Due to Managers 115
Income taxes payable (207) -
Deferred interest 1,714 -
Deferred revenue - 4,911
----------- -----------
Net cash (used in) \ provided by Operating
Activities (1,816) 83,692
----------- -----------
Cash Flows from Investing Activities:
Additions to vessel cost and office equipment (11) (413,354)
Cash paid for above market acquired time charter (14,425)
Increase in restricted cash - (13,010)
----------- -----------
Net cash used in Investing Activities (11) (440,789)
----------- -----------
Cash Flows from Financing Activities:
Proceeds from bank loan - 317,500
Bank loan repayment - (12,500)
Proceeds from exercise of warrants - 94,155
Repurchase of shares and warrants - (11,710)
Financing costs paid - (1,625)
Cash dividend - (42,814)
----------- -----------
Net cash provided by Financing Activities - 343,006
----------- -----------
Net (decrease) in cash and cash equivalents (1,827) (14,091)
Cash and cash equivalents at beginning of period 2,118 18,985
----------- -----------
Cash and cash equivalents at end of period 291 4,894
=========== ===========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest payments - 4,896
Non-cash items:
Accrual of deferred costs 785 -
Issue of common stock at fair value for delivery
of vessels - 18,946
Fair value of below market acquired time charter
agreements - 79,103
Conference Call details:
Star Bulk's management team will host a conference call to discuss the
Company's financial results tomorrow, Tuesday, November 25, 2008, at 10:00
a.m. EST.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329
(from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote
"StarBulk."
A replay of the conference call will be available until December 2, 2008.
The United States replay number is 1(866) 247-4222; from the UK 0(800)
953-1533; the standard international replay number is (+44) (0) 1452 550
000 and the access code required for the replay is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast over the Internet, through
the Star Bulk website (www.starbulk.com). Participants to the live webcast
should register on the website approximately 10 minutes prior to the start
of the webcast.
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne
transportation solutions in the dry bulk sector. Star Bulk's vessels
transport major bulks, which include iron ore, coal and grain and minor
bulks such as bauxite, fertilizers and steel products. Star Bulk was
incorporated in the Marshall Islands on December 13, 2006 and is
headquartered in Athens, Greece. Its common stock and warrants trade on the
Nasdaq Global Market under the symbols "SBLK" and "SBLKW" respectively.
Currently, Star Bulk has an operating fleet of twelve dry bulk carriers.
The total fleet consists of four Capesize, and eight Supramax dry bulk
vessels with an average age of approximately 9.5 years and a combined cargo
carrying capacity of 1,106,250 deadweight tons.
Forward-Looking Statements
The information in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
statements regarding: (1) the delivery and operation of assets of Star
Bulk; (2) Star Bulk's future operating or financial results; (3) future,
pending or recent acquisitions, business strategy, areas of possible
expansion, and expected capital spending or operating expenses; (4) drybulk
market trends, including charter rates and factors affecting vessel supply
and demand; and (5) other statements identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," "should,"
"may," or words of similar meaning.
Such forward-looking statements are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including without
limitation, Star Bulk's examination of historical operating trends, data
contained in their records and other data available from third parties.
Although Star Bulk believes 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 its control, Star Bulk cannot assure you that Star
Bulk will achieve or accomplish these expectations, beliefs or projections.
Important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure of a
seller to deliver one or more vessels, the strength of world economies and
currencies, general market conditions, including changes in charterhire
rates and vessel values, changes in demand that may affect attitudes of
time charterers to scheduled and unscheduled drydocking, changes in Star
Bulk's operating expenses, including bunker prices, dry-docking and
insurance costs, or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents and political events or acts by terrorists. Additional factors
that could cause Star Bulk's results to differ materially from those
described in the forward-looking statements can be found in Star Bulk's
Registration Statement on Form F-1/F-4, Annual Report on Form 20-F for the
year ended December 31, 2007 and reports on Form 6-K filed with the
Securities and Exchange Commission (the "SEC") and available at the SEC's
Internet site (http://www.sec.gov). The information set forth herein speaks
only as of the date hereof, and Star Bulk disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Contact Information: Company: George Syllantavos CFO Star Bulk Carriers Corp. 7 Fragoklisias Str. Maroussi 15125 Athens, Greece www.starbulk.com E-mail: ir@starbulk.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: starbulk@capitallink.com www.capitallink.com