Media

Scorpio Bulkers Inc. Announces Financial Results for the Fourth Quarter of 2016

Feb 6, 2017

MONACO — (Marketwired) — 02/06/17 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months and year ended December 31, 2016.

Results for the Three Months Ended December 31, 2016 and 2015

For the three months ended December 31, 2016, the Company’s GAAP net loss was $20.6 million, or $0.29 loss per diluted share. For the same period in 2015 the Company’s GAAP net loss was $302.0 million, or $11.02 loss per diluted share.

There were no non-GAAP adjustments to earnings in the three months ended December 31, 2016.

For the three months ended December 31, 2015, the Company’s adjusted net loss was $22.0 million or $0.80 adjusted loss per diluted share, which excludes a write down of assets held for sale of $271.3 million and the write off of deferred financing costs on credit facilities that will no longer be used of $8.7 million, or $10.22 loss per diluted share (see Non-GAAP Financial Measures below).

Results for the Years Ended December 31, 2016 and 2015

For the year ended December 31, 2016, the Company had a GAAP net loss of $124.8 million, or $2.22 loss per diluted share. For the year ended December 31, 2016, the Company’s adjusted net loss was $99.9 million, or $1.78 adjusted loss per diluted share. This excludes a loss/write off of vessels and assets held for sale of $12.4 million, the write off of deferred financing costs on credit facilities that will no longer be used of $2.5 million and a charterhire contract termination fee of $10.0 million. These adjustments total a $0.44 loss per diluted share (see Non-GAAP Financial Measures below).

For comparison, in the year ended December 31, 2015, the Company had a GAAP net loss of $510.8 million, or $23.86 loss per diluted share. The Company’s adjusted net loss was $71.8 million or $3.36 adjusted loss per diluted share. This excludes a write down on assets held for sale of $422.9 million and the write off of deferred financing costs on credit facilities that will no longer be used of $16.1 million, or $20.50 loss per share (see Non-GAAP Financial Measures below).

Cash and Cash Equivalents

As of February 3, 2017, the Company had approximately $141.9 million in cash and cash equivalents.

TCE Revenue

TCE Revenue Earned during the Fourth Quarter of 2016

  • Our Kamsarmax fleet earned $7,401 per day
  • Our Ultramax fleet earned $7,238 per day

Voyages Fixed thus far in the First Quarter of 2017

  • Kamsarmax fleet: approximately $8,414 per day for 75% of the days
  • Ultramax fleet: approximately $8,479 per day for 73% of the days

Recent Significant Events

Charter Employment Fixed since October 31, 2016

                                                    Earliest
   Vessel       Type         Duration            Redelivery Date       Rate
----------------------------------------------------------------------------
SBI Zumba    Kamsarmax Min 5 - Max 7 months       May 11, 2017       $10,500
SBI Leo       Ultramax Min 5 - Max 7 months       April 6, 2017       $9,000
SBI Cakewalk Kamsarmax Min 5 - Max 8 months      March 31, 2017       $9,000
SBI Achilles  Ultramax Min 6 - Max 8 months       May 23, 2017       $11,000
SBI Pegasus   Ultramax Min 5 - Max 7 months       June 22, 2017      $10,250
SBI Hermes    Ultramax Min 6 - Max 8 months       July 31, 2017       $8,500

Vessel Price Reductions

The Company reached agreements with shipyards to reduce the price to be paid under the shipbuilding contracts of one Kamsarmax vessel that was delivered in the first quarter of 2017 and one Kamsarmax vessel that is scheduled to be delivered in the second quarter of 2017 by approximately $2.5 million each.

Newbuilding Vessels Deliveries

During the fourth quarter of 2016 the Company took delivery of the following newbuilding vessels:

  • SBI Apollo, an Ultramax vessel, was delivered from Mitsui Engineering & Shipbuilding Co., Ltd.
  • SBI Zumba, a Kamsarmax vessel, was delivered from Hudong-Zhonghua (Group) Co., Ltd.
  • SBI Macarena, a Kamsarmax vessel, was delivered from Hudong-Zhonghua (Group) Co., Ltd.

Since January 1, 2017, the Company took delivery of the following newbuilding vessels:

  • SBI Samson, an Ultramax vessel, was delivered from Chengxi Shipyard Co. Ltd.
  • SBI Parapara, a Kamsarmax vessel, was delivered from Hudong-Zhonghua (Group) Co., Ltd.
  • SBI Swing, a Kamsarmax vessel, was delivered from Hudong-Zhonghua (Group) Co., Ltd.
  • SBI Phoenix, an Ultramax vessel, was delivered from Chengxi Shipyard Co. Ltd.
  • SBI Mazurka, a Kamsarmax vessel, was delivered from Hudong-Zhonghua (Group) Co., Ltd.

As of February 3, 2017, 47 of the 48 vessels in our newbuilding program have successfully been delivered. The remaining vessel is currently expected to be delivered in the second quarter of 2017.

Debt and Liquidity Overview

We made the following drawdowns, gross of any simultaneous prepayments from our credit facilities during the fourth quarter of 2016:

                                       Drawdown Amount
            Credit Facility             ($ thousands)        Collateral
  ----------------------------------- ---------------- ---------------------
1 $330 Million Credit Facility        $         13,200      SBI Macarena
2 $330 Million Credit Facility                  12,000       SBI Samson
3 $409 Million Credit Facility                  13,200      SBI Parapara

As of February 3, 2017, the Company’s outstanding debt balance, gross of unamortized deferred financing costs, and the maximum amount available to draw upon as of February 3, 2017 is as follows (dollars in thousands):

                                   As of December
                                      31, 2016       As of February 3, 2017
--------------------------------- ---------------- -------------------------
                                       Amount         Amount       Amount
         Credit Facility             Outstanding    Outstanding   Available
--------------------------------- ---------------- ------------ ------------
Senior Notes                      $         73,625 $     73,625 $          -
$39.6 Million Credit Facility               20,144       20,144            -
$409 Million Credit Facility               167,816      179,473            -
$330 Million Credit Facility               225,759      250,959       13,200
$42 Million Credit Facility                 38,512       38,512            -
$67.5 Million Credit Facility               40,461       40,461            -
$12.5 Million Credit Facility               10,379       10,379            -
$27.3 Million Credit Facility               19,375       19,375            -
                                  ---------------- ------------ ------------
Total                             $        596,071$    632,928$     13,200
                                  ================ ============ ============

The Company’s projected quarterly debt repayments through 2019 based on current levels of senior notes, bank debt and the maximum loan amount available on the undrawn vessel is as follows (dollars in thousands):

Q1 2017 (1)                  $  1,038
Q2 2017                         2,711
Q3 2017                         6,130
Q4 2017                         6,130
Q1 2018                         6,130
Q2 2018                         6,130
Q3 2018                         6,130
Q4 2018                         6,326
Q1 2019                         6,326
Q2 2019                         6,326
Q3 2019 (2)                    79,951
Q4 2019                         6,326
                             --------
Total                         139,654
                             ========

(1) Relates to payments expected to be made from February 4, 2017 to March
    31, 2017. Excludes a $1.5 million prepayment made upon drawdown between
    January 1, 2017 and February 3, 2017.
(2) Includes $73.6 million repayment of Senior Notes due at maturity

Newbuilding Program

Our Newbuilding Program consists of contracts for the construction of 48 dry bulk vessels, comprised of 28 Ultramax newbuildings, and 20 Kamsarmax newbuildings. As of February 3, 2017, we have taken delivery of all of the Ultramax vessels and 19 Kamsarmax vessels. The construction price for the remaining Kamsarmax vessel is $25.7 million, of which $18.6 million remains unpaid. Installment payments of $1.4 million and $17.2 million are scheduled for the first and second quarters of 2017, respectively, the latter of which will occur upon the delivery of the vessel and coincide with the expected drawdown of up to $13.2 million of available debt.

Financial Results for the Three Months Ended December 31, 2016 Compared to the Three Months Ended December 31, 2015

The Company had a GAAP net loss of $20.6 million, or $0.29 loss per diluted share for the fourth quarter of 2016 compared with a GAAP net loss of $302.0 million, or $11.02 loss per diluted share for the fourth quarter of 2015. Excluding a write down of assets held for sale of $271.3 million and the write off of deferred financing costs on credit facilities that will no longer be used of $8.7 million, adjusted net loss for the fourth quarter of 2015 was $22.0 million or $0.80 adjusted loss per diluted share (see Non-GAAP Financial Measures below). There were no non-GAAP adjustments to earnings in the fourth quarter of 2016.

Time charter equivalent (TCE) revenue, a Non-GAAP financial measure, is vessel revenues less voyage expenses (including bunkers, port charges, broker fees and other miscellaneous expenses that we are unable to recoup under time charter and pool arrangements). 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 $26.8 million for the fourth quarter of 2016 and is associated with a day weighted average of 41 vessels owned and two vessels time chartered-in compared to $21.7 million during the prior year quarter, which was associated with a day weighted average of 27 vessels owned and 10 vessels time chartered-in. TCE revenue per day was $7,303 and $7,390 for the fourth quarter of 2016 and 2015, respectively. While daily TCE rates are down compared to the prior year period, rates have recovered from the all-time lows experienced in the beginning of 2016. Overall TCE revenue increased versus the prior year period despite the lower rates due to the increase in revenue days associated with the growth of our fleet.

Vessel operating costs were $19.0 million and included approximately $0.6 million of takeover costs associated with new deliveries, and $0.4 million of non-recurring expenses and related to 41 vessels owned, on average, during the period. Takeover costs will be eliminated upon the delivery of the final vessel in the second quarter of 2017. Vessel operating costs for the prior year quarter were $14.6 million and related to 27 vessels owned, on average, during the period. Sequentially, vessel operating costs remained relatively flat from the third to fourth quarter of 2016 despite an increase in average vessels owned as certain annual maintenance and class certifications were performed during the third quarter of 2016. Daily operating costs, excluding take over and other non-recurring costs, decreased from $5,330 in the third quarter of 2016 to $5,037 in the fourth quarter.

Charterhire expense decreased to $2.6 million in the fourth quarter of 2016 from $10.8 million in the prior year period, reflecting the reduction in the number of vessels time chartered-in from 10 vessels to two vessels, on a day weighted average, respectively. One of the remaining time chartered-in vessels was redelivered in February 2017 and the other is expected to be redelivered in July 2017.

Depreciation increased to $10.6 million in the fourth quarter of 2016 from $6.6 million in the prior year period, reflecting the increase in our weighted average vessels owned to 41 from 27.

General and administrative expense decreased to $8.7 million from $9.6 million in the prior year period as decreases in restricted stock amortization, due to the run off of awards granted at a higher fair value, and legal expenses were offset by an increase in commercial management fees, reflecting the growth of our fleet.

During the fourth quarter of 2015, we recorded a loss of $271.3 million associated with the sale of 11 Capesize vessels and newbuilding Capesize dry bulk vessels under construction and wrote off $8.7 million of deferred financing costs accumulated on two credit facilities for which the commitments were reduced pursuant to the removal from the facilities of certain vessels that have been sold.

Financial Results for the Year Ended December 31, 2016 Compared to the Year Ended December 31, 2015

The Company had a GAAP net loss of $124.8 million, or $2.22 loss per diluted share for the year ended December 31, 2016 compared with a GAAP net loss of $510.8 million, or $23.86 loss per diluted share for the year ended December 31, 2015. Excluding a loss/write off of vessels and assets held for sale of $12.4 million, a write off of deferred financing costs on credit facilities that will no longer be used of $2.5 million and a charterhire contract termination fee of $10.0 million, adjusted net loss for the year ended December 31, 2016 was $99.9 million, or $1.78 adjusted loss per diluted share. Excluding a loss/write off of vessels and assets held for sale of $422.9 million and the write off of deferred financing costs on credit facilities that will no longer be used of $16.1 million, adjusted net loss for the year ended December 31, 2015, was $71.8 million or $3.36 adjusted loss per diluted share (see Non-GAAP Financial Measures below).

TCE revenue was $78.4 million for 2016 and is associated with a day weighted average of 36 vessels owned and three vessels time chartered-in compared to $61.7 million during the prior year, which was associated with a day weighted average of 16 vessels owned and 12 vessels time chartered-in. TCE revenue per day was $5,789 and $7,173 for 2016 and 2015, respectively. The decrease in TCE revenue per day was due to the depressed market in which we operated for most of the year. Overall TCE revenue increased versus the prior year despite the lower rates due to the increase in revenue days associated with the growth of our fleet.

Vessel operating costs were $68.8 million, including approximately $2.8 million of takeover costs associated with new deliveries and $2.2 million of other non-recurring expenses and related to 36 vessels owned, on average during the period. Takeover costs will no longer be incurred after the delivery of the final vessel in our newbuilding program (expected in the second quarter of 2017). Vessel operating costs for the prior year were $29.4 million and related to 16 vessels owned, on average during the period. Daily operating costs, excluding takeover and other non-recurring expenses for 2016 were $5,129.

Charterhire expense decreased to $17.4 million in 2016 from $51.4 million in the prior year reflecting the reduction in the number of vessels time chartered-in. During 2016 we recorded a $10.0 million charge to terminate four time charter-in contracts. Terminating these contracts reduced our cash outflow and had a positive impact on our future operating results as the contracts were at above current market rates. Of the two remaining time chartered-in vessels, one was redelivered in February 2017 and the other is expected to be redelivered in July 2017.

Depreciation increased to $36.6 million in 2016 from $14.3 million in the prior year reflecting the increase in our weighted average vessels owned to 36 from 16.

General and administrative expense was $34.0 million and $35.4 million for 2016 and 2015, respectively, and included $18.6 million and $24.6 million of restricted stock amortization, respectively. The decrease in restricted stock amortization was due to prior year grants, with higher fair values than current grants, vesting and being fully expensed as well as the reversal of expense related to cancelled awards. This decrease was offset by an increase in commercial management fees, reflecting the growth of our fleet.

During 2016, the Company recorded a loss/write off of vessels and assets held for sale of $12.4 million of which $11.6 million related to the cancellation of a shipbuilding contract for a Kamsarmax bulk carrier and $0.8 million in additional expenses related to vessels held for sale at December 31, 2015. The loss recorded in the prior year period was associated with writing down 24 vessels and construction contracts that were sold or classified as held for sale during 2015, as well as incremental write-downs of certain construction contracts that were classified as held for sale at December 31, 2014.

During 2016 and 2015, the Company wrote off $2.5 million and $16.1 million, respectively, of deferred financing costs accumulated on credit facilities for which the commitments were reduced pursuant to the removal from the facilities of certain vessels that have been sold or classified as held for sale. In addition, during 2016, the Company agreed to reduce the aggregate available loan amounts by $45.2 million resulting in the write off of approximately $1.3 million of deferred financing costs.

                   Scorpio Bulkers Inc. and Subsidiaries
                   Consolidated Statements of Operations
               (Amounts in thousands, except per share data)

                                              Unaudited

                            Three        Three
                            Months       Months
                            Ended        Ended      Year Ended   Year Ended
                           December     December     December     December
                           31, 2016     31, 2015     31, 2016     31, 2015
                         -----------  -----------  -----------  -----------
Revenue:
  Vessel revenue         $    26,846$    22,017$    78,402$    62,521
                         -----------  -----------  -----------  -----------
Operating expenses:
  Voyage expenses                 31          306          (45)         787
  Vessel operating costs      19,036       14,583       68,832       29,372
  Charterhire expense          2,569       10,794       17,356       51,389
  Charterhire contract
   termination charge              -            -       10,000            -
  Vessel depreciation         10,586        6,598       36,562       14,263
  General and
   administrative
   expenses                    8,715        9,605       33,995       35,382
  Loss / write down on
   assets held for sale            -      271,258       12,433      422,937
                         -----------  -----------  -----------  -----------
Total operating expenses      40,937      313,144      179,133      554,130
                         -----------  -----------  -----------  -----------
Operating loss               (14,091)    (291,127)    (100,731)    (491,609)
                         -----------  -----------  -----------  -----------
Other income (expense):
  Interest income                301           77          933          356
  Foreign exchange gain
   (loss)                         49          (18)        (116)         (12)
  Financial expense, net      (6,816)     (10,958)     (24,921)     (19,524)
                         -----------  -----------  -----------  -----------
Total other expense           (6,466)     (10,899)     (24,104)     (19,180)
                         -----------  -----------  -----------  -----------
Net loss                 $   (20,557)$  (302,026)$  (124,835)$  (510,789)
                         ===========  ===========  ===========  ===========

Loss per common share-
 basic and diluted(1)    $     (0.29)$    (11.02)$     (2.22)$    (23.86)
Weighted-average shares
 outstanding- basic and
 diluted(1)                   71,672       27,399       56,174       21,410

(1) Diluted weighted average shares outstanding excludes the impact of
    restricted shares for the three and twelve months ended December 31,
    2016 and 2015, as the impact would be anti-dilutive since the Company is
    in a net loss position.

                   Scorpio Bulkers Inc. and Subsidiaries
                        Consolidated Balance Sheets
                           (Dollars in thousands)

                                                     December     December
                                                     31, 2016     31, 2015
                                                   -----------  -----------
Assets
Current assets
  Cash and cash equivalents                        $   101,734$   200,300
  Accounts receivable                                    7,050        8,197
  Prepaid expenses and other current assets              6,696       11,247
  Assets held for sale                                       -      172,888
                                                   -----------  -----------
Total current assets                                   115,480      392,632
                                                   -----------  -----------
Non-current assets
  Vessels, net                                       1,234,081      764,454
  Vessels under construction                           180,000      288,282
  Deferred financing costs, net                          3,307          464
  Other assets                                          14,289       27,261
                                                   -----------  -----------
  Total non-current assets                           1,431,677    1,080,461
                                                   -----------  -----------
Total assets                                       $ 1,547,157$ 1,473,093
                                                   ===========  ===========

Liabilities and shareholders' equity
Current liabilities
  Bank loans, net                                  $    13,480$   107,739
  Accounts payable and accrued expenses                 11,070       16,838
                                                   -----------  -----------
Total current liabilities                               24,550      124,577
                                                   -----------  -----------
Non-current liabilities
  Bank loans, net                                      493,793      342,314
  Senior Notes, net                                     72,199       71,671
                                                   -----------  -----------
Total non-current liabilities                          565,992      413,985
                                                   -----------  -----------
Total liabilities                                      590,542      538,562
                                                   -----------  -----------
Shareholders' equity
  Preferred stock, $0.01 par value; 50,000,000
   shares authorized; no shares issued or
   outstanding                                               -            -
  Common stock, $0.01 par value per share;
   authorized 112,500,000 shares; issued and
   outstanding 75,298,676 and 28,686,561 shares as
   of December 31, 2016 and December 31, 2015,
   respectively                                            753          287
  Paid-in capital                                    1,714,358    1,567,905
  Accumulated deficit                                 (758,496)    (633,661)
                                                   -----------  -----------
Total shareholders' equity                             956,615      934,531
                                                   -----------  -----------
Total liabilities and shareholders' equity         $ 1,547,157$ 1,473,093
                                                   ===========  ===========

                   Scorpio Bulkers Inc. and Subsidiaries
                          Statements of Cash Flows
                           (Amounts in thousands)
                                                    Year Ended December 31,
                                                   ------------------------
                                                       2016         2015
                                                   -----------  -----------
Operating activities
Net loss                                           $  (124,835)$  (510,789)
Adjustment to reconcile net loss to net cash used
 by
operating activities:
  Restricted stock amortization                         18,609       24,599
  Vessel depreciation                                   36,562       14,263
  Amortization of deferred financing costs               4,137        1,988
  Write off of deferred financing costs                  3,781       16,085
  Loss / write down on assets held for sale             10,555      422,937
Changes in operating assets and liabilities:
  Decrease in accounts receivable                        1,146            -
  Decrease (increase) in prepaid expenses and
   other current assets                                  3,617       (9,597)
  (Decrease) increase in accounts payable and
   accrued expenses                                     (5,768)       5,372
                                                   -----------  -----------
Net cash used in operating activities                  (52,196)     (35,142)
                                                   -----------  -----------
Investing activities
  Security deposit refunded on assets held for
   sale                                                      -       31,277
  Proceed from sale of assets held for sale            271,376      281,050
  Payments on assets held for sale                     (98,445)     (92,433)
  Payments for vessels and vessels under
   construction                                       (408,307)    (875,970)
                                                   -----------  -----------
Net cash used in investing activities                 (235,376)    (656,076)
                                                   -----------  -----------
Financing activities
  Proceeds from issuance of common stock               128,112      217,997
  Proceeds from issuance of long-term debt             247,243      489,561
  Repayments of long-term debt                        (185,239)     (62,669)
  Debt issue costs paid                                 (1,110)     (26,044)
                                                   -----------  -----------
Net cash provided by financing activities              189,006      618,845
                                                   -----------  -----------
Increase in cash and cash equivalents                  (98,566)     (72,373)
Cash at cash equivalents, beginning of period          200,300      272,673
                                                   -----------  -----------
Cash and cash equivalents, end of period           $   101,734$   200,300
                                                   ===========  ===========

                   Scorpio Bulkers Inc. and Subsidiaries
                      Other Operating Data (unaudited)

                                Three       Three
                                Months      Months
                                Ended       Ended    Year Ended   Year Ended
                               December    December   December     December
                               31, 2016    31, 2015   31, 2016     31, 2015
                             ----------- ----------- ----------  -----------
Time charter equivalent
 revenue ($000's) (1):
  Vessel revenue             $    26,846$    22,017$   78,402$    62,521
  Voyage expenses                     31         306        (45)         787
                             ----------- ----------- ----------  -----------
  Time charter equivalent
   revenue                   $    26,815$    21,711$   78,447$    61,734
                             =========== =========== ==========  ===========
Time charter equivalent
 revenue attributable to:
  Kamsarmax                  $    10,790$     7,304$   31,765$    26,381
  Ultramax                        16,025      10,426     46,682       26,595
  Capesize                             -       3,981          -        8,758
                             ----------- ----------- ----------  -----------
                             $    26,815$    21,711$   78,447$    61,734
                             =========== =========== ==========  ===========
Revenue days:
  Kamsarmax                        1,458       1,100      5,633        3,961
  Ultramax                         2,214       1,526      7,917        3,889
  Capesize                             -         312          -          757
                             ----------- ----------- ----------  -----------
Combined                           3,672       2,938     13,550        8,607
                             =========== =========== ==========  ===========
TCE per revenue day (1):
  Kamsarmax                  $     7,401$     6,640$    5,639$     6,660
  Ultramax                   $     7,238$     6,832$    5,896$     6,839
  Capesize                   $         - $    12,760 $        -  $    11,569
  Combined                   $     7,303$     7,390$    5,789$     7,173
(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.

    We report TCE revenue, a non-GAAP financial measure, because (i) we
    believe it provides additional meaningful information in conjunction
    with voyage revenues and voyage expenses, the most directly comparable
    U.S.-GAAP measure, (ii) it assists our management in making decisions
    regarding the deployment and use of our vessels and in evaluating their
    financial performance, (iii) 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 bareboat
    charters) under which the vessels may be employed between the periods,
    and (iv) we believe that it presents useful information to investors.

Fleet List as of February 3, 2017

                   Owned vessels delivered from shipyards

                Vessel Name                Year Built    DWT     Vessel Type
----------------------------------------------------------------------------
SBI Cakewalk                                  2014       82,000   Kamsarmax
SBI Charleston                                2014       82,000   Kamsarmax
SBI Samba                                     2015       84,000   Kamsarmax
SBI Rumba                                     2015       84,000   Kamsarmax
SBI Capoeira                                  2015       82,000   Kamsarmax
SBI Electra                                   2015       82,000   Kamsarmax
SBI Carioca                                   2015       82,000   Kamsarmax
SBI Conga                                     2015       82,000   Kamsarmax
SBI Flamenco                                  2015       82,000   Kamsarmax
SBI Bolero                                    2015       82,000   Kamsarmax
SBI Sousta                                    2016       82,000   Kamsarmax
SBI Rock                                      2016       82,000   Kamsarmax
SBI Lambada                                   2016       82,000   Kamsarmax
SBI Reggae                                    2016       82,000   Kamsarmax
SBI Zumba                                     2016       82,000   Kamsarmax
SBI Macarena                                  2016       82,000   Kamsarmax
SBI Parapara                                  2017       82,000   Kamsarmax
SBI Mazurka                                   2017       82,000   Kamsarmax
SBI Swing                                     2017       82,000   Kamsarmax
                                                      ----------
              Total Kamsarmax                         1,562,000

SBI Antares                                   2015       61,000   Ultramax
SBI Athena                                    2015       64,000   Ultramax
SBI Bravo                                     2015       61,000   Ultramax
SBI Leo                                       2015       61,000   Ultramax
SBI Echo                                      2015       61,000   Ultramax
SBI Lyra                                      2015       61,000   Ultramax
SBI Tango                                     2015       61,000   Ultramax
SBI Maia                                      2015       61,000   Ultramax
SBI Hydra                                     2015       61,000   Ultramax
SBI Subaru                                    2015       61,000   Ultramax
SBI Pegasus                                   2015       64,000   Ultramax
SBI Ursa                                      2015       61,000   Ultramax
SBI Thalia                                    2015       64,000   Ultramax
SBI Cronos                                    2015       61,000   Ultramax
SBI Orion                                     2015       64,000   Ultramax
SBI Achilles                                  2016       61,000   Ultramax
SBI Hercules                                  2016       64,000   Ultramax
SBI Perseus                                   2016       64,000   Ultramax
SBI Hermes                                    2016       61,000   Ultramax
SBI Zeus                                      2016       60,200   Ultramax
SBI Hera                                      2016       60,200   Ultramax
SBI Hyperion                                  2016       61,000   Ultramax
SBI Tethys                                    2016       61,000   Ultramax
SBI Phoebe                                    2016       64,000   Ultramax
SBI Poseidon                                  2016       60,200   Ultramax
SBI Apollo                                    2016       60,200   Ultramax
SBI Samson                                    2017       64,000   Ultramax
SBI Phoenix                                   2017       64,000   Ultramax
                                                      ----------
              Total Ultramax                          1,731,800
                                                      ----------
  Total Owned Vessels DWT                             3,293,800
                                                      ==========

Vessels under construction

Kamsarmax
                              Expected
                              Delivery
         Vessel Name            (1)       DWT             Shipyard
  --------------------------------------------------------------------------
                                                Hudong-Zhonghua Shipbuilding
1 Hull S1233 - TBN SBI Jive    Q2-17    82,000             (Group) Co., Inc.
                                        -------
  Kamsarmax NB DWT                      82,000
                                        =======

(1) Expected delivery date relates to the quarter during which each vessel is currently expected to be delivered from the shipyard.

Time chartered-in vessels

In February 2017, the Company redelivered a Panamax vessel that was previously time-chartered in. Upon redelivery, all profits and losses over or under $14,000 per day will be split evenly between the Company and the vessel’s owner for a period of two years. The Company currently has time chartered-in one dry bulk vessel. The terms of the contract is summarized as follows:

                                                    Daily
  Vessel Type    Year Built    DWT   Where Built  Base Rate  Earliest Expiry
--------------- ------------ ------ ------------- --------- ----------------
Kamsarmax           2012     82,000  South Korea  $ 15,500    30-Jul-17 (1)
  Total TC DWT               82,000
                             ======

(1) 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.

Conference Call Details:

Monday, February 6, 2017 at 9:00 AM Eastern Standard Time/3:00 PM Central European Time.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888) 466-4462 (U.S.) or 1(719) 325-2420 (International). The conference participant passcode is 1540821. 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: https://www.webcaster4.com/Webcast/Page/608/19516

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently owns 47 vessels, consisting of 19 Kamsarmax vessels and 28 Ultramax vessels. The Company also time charters-in one dry bulk Kamasarmax vessel and has contracted for one dry bulk Kamsarmax vessel from a shipyard in China. Upon final delivery of the last vessel the owned fleet is expected to have a total carrying capacity of approximately 3.4 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.

Non-GAAP Financial Measures

This press release describes adjusted net loss and related per share amounts, which is not a measure prepared in accordance with GAAP. We believe the non-GAAP financial measure presented in this press release provides investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP.

Adjusted net loss

In thousands, except per share data

                                                      Three Months Ended
                                                         December 31,
                                                             2015
                                                  -------------------------
                                                     Amount      Per share
                                                   (unaudited)  (unaudited)
                                                  ------------ ------------
Net loss                                          $   (302,026)$     (11.02)
Adjustments:
  Loss / write down on assets held for sale            271,258         9.90
  Write down of deferred financing cost                  8,748         0.32
                                                  ------------ ------------
Total adjustments                                      280,006        10.22
                                                  ------------ ------------
Adjusted net loss                                 $    (22,020)$      (0.80)
                                                  ============ ============

                                       Year Ended December 31,
                                   2016                      2015
                         ------------------------  ------------------------
                            Amount     Per share      Amount     Per share
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
                         -----------  -----------  -----------  -----------
Net loss                 $  (124,835)$     (2.22)$  (510,789)$    (23.86)
Adjustments:
  Loss / write down on
   assets held for sale       12,433         0.22      422,937        19.75
  Write down of deferred
   financing cost              2,456         0.04       16,085         0.75
  Charterhire contract
   termination                10,000         0.18            -            -
                         -----------  -----------  -----------  -----------
Total adjustments             24,889         0.44      439,022        20.50
                         -----------  -----------  -----------  -----------
Adjusted net loss        $   (99,946)$     (1.78)$   (71,767)$     (3.36)
                         ===========  ===========  ===========  ===========

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.

   Contact:Scorpio Bulkers Inc.+377-9798-5715 (Monaco)+1-646-432-1675 (New York)

Source: Scorpio Bulkers Inc.