ATHENS, GREECE -- (Marketwired) -- 11/21/17 -- DryShips Inc. (NASDAQ: DRYS), or DryShips or the Company, a diversified owner of ocean going cargo vessels, today announced its unaudited financial and operating results for the quarter ended September 30, 2017.
Updated Key Information as of November 20, 2017
- Cash and cash equivalents: approximately $25.9 million (or $0.25 per share)
- Book value of vessels, including advances: approximately $786.5 million (or $7.54 per share)
- Debt outstanding balance: approximately $185.5 million (or $1.78 per share)
- Number of Shares Outstanding: 104,274,708
Recent Developments
- Credit Facility with Sierra Investments Inc.
Following the closing of the previously announced, $100.0 million private placement and $100.0 million rights offering, on October 25, 2017, the Company's credit facility with Sierra Investments Inc., an entity affiliated with Mr. George Economou, the Company's Chairman and Chief Executive Officer, with an outstanding balance of approximately $73.8 million, was refinanced with a new loan facility secured by assets, and which has a loan to value ratio of 50%, a tenor of 5 years, no amortization and a margin of LIBOR plus 4.5%. No arrangement fees or otherwise were charged in connection with the refinancing. - Appointment of new director
Mr. George Kokkodis was appointed to the Board of the Company as of November 21, 2017. From 2009 to January 2015, Mr. Kokkodis has been an Independent Business Introducer and Independent Client Advisor of financial investments at BNP Paribas (Suisse) SA, where he was a Senior Private Banker from 2003 to 2009 and the Head of the Greek Private Banking Desk at BNP Paribas London from 1999 to 2003. From 1998 to 1999, Mr. Kokkodis served as Vice President of Private Banking at Merrill Lynch International Bank, London UK and, from 1996 to 1998 held the same position at Merrill Lynch Bank Suisse S.A. Prior to that, Mr. Kokkodis was Vice President of Private Banking at Bankers Trust International PLC, London UK from 1993 to 1996. Mr. Kokkodis holds a Bachelor of Science in Aeronautical Engineering from the Imperial College of Science and Technology and a Master of Science in Aeronautical Engineering from the University of Glasgow. Mr. Kokkodis was a member of the board of directors of MIG Real Estate from April 2011 to September 2015. Mr. Kokkodis was a member of the board of directors of Ocean Rig UDW Inc. from September 2015 to November 2017.
Following the appointment of Mr. Kokkodis, the Company's Board of Directors is now comprised of six directors, four of whom are considered independent under the NASDAQ rules.
Fleet List
The table below describes the Company's fleet as of November 20, 2017, including vessels the Company has agreed to acquire:
Year Gross rate Redelivery
Built DWT Per day Earliest Latest
------- ------- ---------------- ---------- -------
Drybulk fleet
Panamax:
Bargara 2002 74,832 Spot N/A N/A
Capitola 2001 74,816 Spot N/A N/A
Catalina 2005 74,432 Spot N/A N/A
Ecola 2001 73,391 Spot N/A N/A
Levanto 2001 73,925 Spot N/A N/A
Ligari 2004 75,583 Spot N/A N/A
Maganari 2001 75,941 Spot N/A N/A
Majorca 2005 74,477 Spot N/A N/A
Marbella 2000 72,561 Spot N/A N/A
Mendocino 2002 76,623 Spot N/A N/A
Rapallo 2009 75,123 Spot N/A N/A
Raraka 2012 76,037 Spot N/A N/A
Redondo 2000 74,716 Spot N/A N/A
Newcastlemax:
Bacon 2013 205,170 T/C Index Linked Aug-18 Jan-19
Judd 2015 205,796 $9,350 Dec-17 Apr-18
Marini 2014 205,854 $19,400 Feb-18 May-18
Morandi 2013 205,854 T/C Index Linked Feb-18 May-18
Kamsarmax:
Castellani 2014 82,129 Spot N/A N/A
Kelly 2017 81,300 Spot N/A N/A
Matisse 2014 81,128 Spot N/A N/A
Nasaka 2014 81,918 Spot N/A N/A
Valadon 2014 81,198 Spot N/A N/A
Tanker fleet
Very Large Crude
Carrier:
Shiraga 2011 320,105 Spot N/A N/A
Suezmax:
$18,000 Base
rate
plus profit
Samsara 2017 159,855 share Mar.-22 May-25
Aframax:
Balla 2017 113,293 Spot N/A N/A
Stamos 2012 115,666 Spot N/A N/A
Gas Carrier fleet
Very Large Gas Carriers:
Anderida 2017 51,850 $30,000 Jun.-22 Jun.-25
Aisling 2017 51,850 $30,000 Sep.-22 Sep.-25
Mont Fort 2017 51,850 $28,833 Nov.-27 Nov.-27
Mont Gele (1) 2018 51,850 $28,833 Jan.-28 Jan.-28
(1) Expected to be delivered in January 2018.
Offshore Supply fleet
Platform Supply Vessels:
Crescendo 2012 1,457 Laid up N/A N/A
Colorado 2012 1,430 Laid up N/A N/A
Oil Spill Recovery
Vessels:
Indigo 2013 1,401 Laid up N/A N/A
Jacaranda 2012 1,360 Laid up N/A N/A
Emblem 2012 1,363 Laid up N/A N/A
Jubilee 2012 1,317 Laid up N/A N/A
Drybulk Carrier, Tanker and Gas Carrier Segments Summary Operating Data
(unaudited)
(Dollars in thousands, except average daily results)
Three Months Ended Nine Months Ended
Drybulk September 30, September 30,
--------------------- ---------------------
2016 2017 2016 2017
------------------------------------------- ---------- ---------- ----------
Average number of vessels(1) 19.7 21.8 20.9 16.8
Total voyage days for vessels(2) 1,353 2,002 5,183 4,582
Total calendar days for
vessels(3) 1,809 2,002 5,722 4,582
Fleet utilization(4) 74.8% 100.0% 90.6% 100.0%
Time charter equivalent(5) $3,442 $8,557 $3,238 $7,323
Vessel operating expenses
(daily)(6) $4,926 $6,085 $4,839 $5,917
Three Months Ended Nine Months Ended
Tanker September 30, September 30,
--------------------- ---------------------
2016 2017 2016 2017
------------------------------------------- ---------- ---------- ----------
Average number of vessels(1) - 4.0 - 2.0
Total voyage days for vessels(2) - 368 - 543
Total calendar days for
vessels(3) - 368 - 543
Fleet utilization(4) - 100.0% - 100.0%
Time charter equivalent(5) - $10,932 - $10,650
Vessel operating expenses
(daily)(6) - $7,763 - $11,013
Three Months Ended Nine Months Ended
Gas Carrier September 30, September 30,
--------------------- ---------------------
2016 2017 2016 2017
------------------------------------------- ---------- ---------- ----------
Average number of vessels(1) - 1.2 - 0.4
Total voyage days for vessels(2) - 111 - 114
Total calendar days for
vessels(3) - 111 - 114
Fleet utilization(4) - 100.0% - 100.0%
Time charter equivalent(5) - $28,216 - $27,860
Vessel operating expenses
(daily)(6) - $15,678 - $22,447
(1) Average number of vessels is the number of vessels that constituted the Company's fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company's fleet during the period divided by the number of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were in the Company's possession for the relevant period net of dry-docking and laid-up days.
(3) Calendar days are the total number of days the vessels were in the Company's possession for the relevant period including dry-docking days and laid-up days.
(4) Fleet utilization is the percentage of time that the Company's vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. The Company's method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) 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 and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from the Company's vessels, the most directly comparable U.S. GAAP measure, because it assists the Company's management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also 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. Please see below for a reconciliation of TCE rates to voyage revenues.
(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, is calculated by dividing vessel operating expenses by fleet calendar days net of laid-up days for the relevant time period.
Drybulk Carrier, Tanker and Gas Carrier Segments Summary Operating Data
(unaudited) - continued
(In thousands of U.S. dollars, except for TCE rate, which is expressed in
Dollars, and voyage days)
Three Months Ended Nine Months Ended
Drybulk September 30, September 30,
-------------------- --------------------
2016 2017 2016 2017
------------------------------------------ --------- --------- ---------
Voyage revenues $ 6,809 $ 19,203 $ 22,032 $ 39,916
Voyage expenses (2,152) (2,072) (5,251) (6,364)
--------- --------- --------- ---------
Time charter equivalent revenues $ 4,657 $ 17,131 $ 16,781 $ 33,552
--------- --------- --------- ---------
Total voyage days for fleet 1,353 2,002 5,183 4,582
Time charter equivalent (TCE) $ 3,442 $ 8,557 $ 3,238 $ 7,323
Three Months Ended Nine Months Ended
Tanker September 30, September 30,
-------------------- --------------------
2016 2017 2016 2017
------------------------------------------- --------- ---------- ---------
Voyage revenues $ - $ 7,466 $ - $ 11,072
Voyage expenses - (3,443) - (5,289)
---------- --------- ---------- ---------
Time charter equivalent revenues $ - $ 4,023 $ - $ 5,783
---------- --------- ---------- ---------
Total voyage days for fleet - 368 - 543
Time charter equivalent (TCE) $ - $ 10,932 $ - $ 10,650
Three Months Ended Nine Months Ended
Gas Carrier September 30, September 30,
-------------------- --------------------
2016 2017 2016 2017
------------------------------------------- --------- ---------- ---------
Voyage revenues $ - $ 3,266 $ - $ 3,316
Voyage expenses - (134) - (140)
---------- --------- ---------- ---------
Time charter equivalent revenues $ - $ 3,132 $ - $ 3,176
---------- --------- ---------- ---------
Total voyage days for fleet - 111 - 114
Time charter equivalent (TCE) $ - $ 28,216 $ - $ 27,860
DryShips Inc.
Financial Statements
Unaudited Condensed Consolidated Statements of Operations
(Expressed in
Thousands of U.S.
Dollars except for
share and per share Three Months Ended Nine Months Ended September
data) September 30, 30,
------------------------ ---------------------------
2016 2017 2016 2017
----------- ----------- -------------- -----------
REVENUES:
Voyage revenues $ 12,086 $ 29,934 $ 42,284 $ 58,123
----------- ----------- -------------- -----------
12,086 29,934 42,284 58,123
EXPENSES:
Voyage expenses 2,366 5,767 6,364 12,396
Vessel operating
expenses 9,041 17,141 36,554 40,375
Depreciation 872 5,530 2,595 8,632
Vessels impairment,
loss on sales and
other (4,109) - 41,836 300
General and
administrative
expenses 7,352 7,843 25,375 23,638
Other, net 279 241 (482) 681
----------- ----------- -------------- -----------
Operating loss (3,715) (6,588) (69,958) (27,899)
OTHER INCOME /
(EXPENSES):
Interest and finance
costs, net of
interest income (1,705) (3,604) (7,051) (8,313)
Loss on private
placement - (7,600) - (7,600)
Other, net 173 (190) (2,707) (521)
----------- ----------- -------------- -----------
Total other expenses,
net (1,532) (11,394) (9,758) (16,434)
----------- ----------- -------------- -----------
Net loss (5,247) (17,982) (79,716) (44,333)
Equity in losses of
Ocean Rig - - (41,454) -
----------- ----------- -------------- -----------
Net loss attributable
to DryShips Inc. $ (5,247) $ (17,982) $ (121,170) $ (44,333)
=========== =========== ============== ===========
Net loss attributable
to DryShips Inc.
common stockholders (5,795) (15,177) (121,774) (41,528)
=========== =========== ============== ===========
Loss per common
share, basic and
diluted (1) $(60,364.58) $ (0.42) $(1,739,628.57) $ (3.36)
Weighted average
number of shares,
basic and diluted
(1) 96 36,186,606 70 12,356,150
(1) Share and per share data for 2016 give effect to a cumulative 1-for-
7,840 reverse stock split between January 23, 2017 and July 21, 2017.
DryShips Inc.
Unaudited Condensed Consolidated Balance Sheets
December 31, September 30,
(Expressed in Thousands of U.S. Dollars) 2016 2017
--------------- ---------------
ASSETS
Cash, cash equivalents, including
restricted cash (current and non-current) $ 76,774 $ 52,676
Other current and non-current assets 21,406 80,227
Advances for vessels under construction - 47,758
Vessels, net 95,550 682,223
--------------- ---------------
Total assets 193,730 862,884
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Total debt 133,428 240,630
Total other liabilities 10,528 14,785
Total stockholders' equity 49,774 607,469
--------------- ---------------
Total liabilities and stockholders' equity $ 193,730 $ 862,884
=============== ===============
Adjusted EBITDA Reconciliation
Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel and investment impairments and certain other non-cash items as described below and gains or losses on interest rate swaps. Adjusted 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 the Company's calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by the Company's lenders as a credit metric and the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.
The following table reconciles net loss to Adjusted EBITDA:
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
(Dollars in thousands) 30, 2016 30, 2017 30, 2016 30, 2017
---------- ---------- ---------- ----------
Net loss attributable to
DryShips Inc. $ (5,247) $ (17,982) $ (121,170) $ (44,333)
Add: Net interest expense 1,705 3,604 7,051 8,313
Add: Depreciation 872 5,530 2,595 8,632
Add: Dry-dockings and class
survey costs 14 - 181 -
Add: Impairments losses on
sales and other (4,109) - 41,836 300
Add: Loss on private
placement - 7,600 - 7,600
Add: Income taxes 2 61 21 81
Add: Gain on interest rate
swaps (1,112) - (403) -
Add: Equity in losses of
affiliate - - 41,454 -
---------- ---------- ---------- ----------
Adjusted EBITDA $ (7,875) $ (1,187) $ (28,435) $ (19,407)
========== ========== ========== ==========
About DryShips Inc.
The Company is a diversified owner of ocean going cargo vessels that operate worldwide. The Company owns a fleet of 36 vessels comprising of (i) 13 Panamax drybulk vessels; (ii) 4 Newcastlemax drybulk vessels; (iii) 5 Kamsarmax drybulk vessels; (iv) 1 Very Large Crude Carrier; (v) 2 Aframax tankers; (vi) 1 Suezmax tanker; (vii) 4 Very Large Gas Carriers, 1 of which is expected to be delivered in January 2018; and (viii) 6 offshore support vessels, including 2 platform supply and 4 oil spill recovery vessels.
DryShips' common stock is listed on the NASDAQ Capital Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com
Forward-Looking Statement
Matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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 such safe harbor legislation.
Forward-looking statements reflect the Company's current views with respect to future events and financial performance and may 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 forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company 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 the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the factors related to the strength of world economies and currencies, general market conditions, including changes in charter rates, utilization of vessels and vessel values, failure of a seller or shipyard to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, the Company's inability to procure acquisition financing, default by one or more charterers of the Company's ships, changes in demand for drybulk or LPG commodities, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydockings, changes in the Company's voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations, changes in the Company's relationships with the lenders under its debt agreements, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by DryShips Inc. with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F, as amended.
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: dryships@capitallink.com
