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Scorpio Bulkers Inc. Announces Financial Results for the Second Quarter of 2017

Jul 24, 2017

MONACO, July 24, 2017 (GLOBE NEWSWIRE) — Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the “Company”), a leading provider of marine transportation of dry bulk commodities, today reported its results for the three and six months ended June 30, 2017.

Results for the Three and Six Months Ended June 30, 2017 and 2016

For the second quarter of 2017 the Company’s GAAP net loss was $13.4 million, or $0.19 loss per diluted share.  For the same period in 2016 the Company’s GAAP net loss was $24.7 million, or $0.48 loss per diluted share.

For the six months ended June 30, 2017, the Company’s GAAP net loss was $48.0 million, or $0.67 loss per diluted share compared to a GAAP net loss of $83.0 million, or $2.05 loss per diluted share for the prior year period.

For the six months ended June 30, 2017, the Company’s adjusted net loss was $29.8 million, or $0.41 adjusted loss per diluted share, which excludes the impact of a write down of assets held for sale of $17.7 million and a write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. For the six months ended June 30, 2016, the Company’s adjusted net loss was $58.1 million, or $1.43 adjusted loss per diluted share, which 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 (see Non-GAAP Financial Measures below).

Cash and Cash Equivalents

As of July 21, 2017, the Company had approximately $148.3 million in cash and cash equivalents.

TCE Revenue

TCE Revenue Earned during the Second Quarter of 2017

  • Our Kamsarmax fleet earned $9,273 per day
  • Our Ultramax fleet earned $8,360 per day

Voyages Fixed thus far for the Third Quarter of 2017

  • Kamsarmax fleet: approximately $8,749 per day for 50% of the days
  • Ultramax fleet: approximately $9,005 per day for 56% of the days

Recent Significant Events

Reinstatement of Debt Amortization and Restoration of the Ability to Pay Dividends

During 2016, we entered into agreements with certain of our lenders to, among other things; defer future principal repayments under certain of our loan agreements.  In July 2017, we reached agreements in principal with such lenders whereby principal repayments on our debt totaling $45.4 million that were previously deferred would be reinstated to their original form.  Under these agreements in principal, we will be required to make principal payments of approximately $7.3 million in the third quarter of 2017 and quarterly principal payments ranging from $1.0 million to $4.5 million per quarter from the fourth quarter of 2017 through the fourth quarter of 2020.

All restrictions on the payment of dividends that were put in place as part of prior loan amendments have been removed from all of our credit facilities.

Completion of the Sale of Vessels

During the second quarter of 2017, we completed the sale of SBI Cakewalk and SBI Charleston for $22.5 million each. Net cash proceeds is approximately $24.2 million after repaying the outstanding loan balance of $20.1 million under the $39.6 Million Credit Facility.

Newbuilding Vessel Delivery

During the second quarter of 2017, the Company took delivery of the following newbuilding vessel:

  • SBI Jive, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.

All 46 vessels in our newbuilding program have been successfully delivered, all contracted amounts have been paid in full and we have no further obligations due to any shipyard.

Agreement to Time Charter-In One Ultramax Vessel

During the second quarter of 2017, we entered into a time charter-in agreement with an unrelated third party for one Ultramax vessel. The agreement is for two years at approximately $10,125 per day.  We have the option to extend the agreement for one year at approximately $10,885 per day. The time charter is expected to commence prior to the end of October 2017.

Debt and Liquidity Overview

The Company’s outstanding debt balance, gross of unamortized deferred financing costs as of June 30, 2017 and July 21, 2017 are as follows (dollars in thousands).

Credit Facility   Amount Outstanding
Senior Notes   $ 73,625  
$409 Million Credit Facility   179,473  
$330 Million Credit Facility   260,136  
$42 Million Credit Facility   38,512  
$67.5 Million Credit Facility   40,461  
$12.5 Million Credit Facility   10,379  
$27.3 Million Credit Facility   19,375  
Total   $ 621,961  

The Company’s projected quarterly debt repayments through 2019, including the impact from the reinstated principal repayments as noted above, is as follows (dollars in thousands):

Q3 2017 (1 ) $ 13,433  
Q4 2017     9,837  
Q1 2018     9,289  
Q2 2018     9,629  
Q3 2018     9,197  
Q4 2018     8,537  
Q1 2019     8,259  
Q2 2019     8,357  
Q3 2019 (2 )   82,415  
Q4 2019     10,319  
Total   $ 169,272  

 

(1) Relates to payments expected to be made from July 22, 2017 to September 30, 2017
(2) Includes $73.6 million repayment of Senior Notes due at maturity

Financial Results for the Three Months Ended June 30, 2017 Compared to the Three Months Ended June 30, 2016

The Company had a GAAP net loss of $13.4 million, or $0.19 loss per diluted share for the second quarter of 2017 compared with a GAAP net loss of $24.7 million, or $0.48 loss per diluted share for the second 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 $37.6 million for the second quarter of 2017 and is associated with a day weighted average of 47 vessels owned and one vessel time chartered-in compared to $17.4 million during the prior year quarter, which was associated with a day weighted average of 34 vessels owned and three vessels time chartered-in. TCE revenue per day was $8,733 and $5,303 for the second quarter of 2017 and 2016, respectively.  Increased worldwide demand across all bulk sectors, regions and commodities, as well as a reduction in supply caused rates to increase compared to the prior year period.  Overall TCE revenue increased significantly versus the prior year period due to the increase in rates combined with the increase in revenue days associated with the growth of our fleet. While TCE rates continued the sequential quarter on quarter growth, rates somewhat stabilized in the second quarter of 2017 as demand for commodities slowed due to China increasing domestic coal and iron ore production.

Vessel operating costs were $21.1 million associated with 47 vessels owned, on average, during the period.  Vessel operating costs for the prior year quarter were $15.6 million and related to 34 vessels owned, on average, during the period. Sequentially, daily operating costs, excluding take over and other non-operating costs, decreased to $4,858 in the second quarter of 2017 from $5,019 in the first quarter of 2017, as a result of our cost reduction efforts. 

Charterhire expense decreased to $1.7 million in the second quarter of 2017 from $3.6 million in the prior year period, reflecting the reduction in the number of vessels time chartered-in from three vessels to one vessel, on a day weighted average, respectively.  The existing time chartered-in vessel is expected to be redelivered in August 2017.  An additional time charter-in is expected to commence no later than the end of October 2017. The agreement is for two years at approximately $10,125 per day with an option to extend for one year at approximately $10,885 per day.

Depreciation increased to $12.0 million in the second quarter of 2017 from $8.7 million in the prior year period, reflecting the increase in our weighted average vessels owned to 47 from 34.

General and administrative expense decreased to $7.6 million from $8.6 million in the prior year period due primarily to decreases in restricted stock amortization caused by the run off of awards granted at a higher fair value and a reduction in legal fees, offset in part by an increase in administrative fees reflecting the growth of our fleet.

Financial Results for the Six Months Ended June 30, 2017 Compared to the Six Months Ended June 30, 2016

The Company had a GAAP net loss of $48.0 million, or $0.67 loss per diluted share for the six months ended June 30, 2017 compared with a GAAP net loss of $83.0 million, or $2.05 loss per diluted share for the six months ended June 30, 2016.

For the six months ended June 30, 2017, the Company’s adjusted net loss was $29.8 million, or $0.41 adjusted loss per diluted share, which excludes the impact of a write down of assets held for sale of $17.7 million and a write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. For the six months ended June 30, 2016, the Company’s adjusted net loss was $58.1 million, or $1.43 adjusted loss per diluted share, which 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 (see Non-GAAP Financial Measures below).

TCE revenue was $72.2 million in the first half of 2017 and is associated with a day weighted average of 47 vessels owned and one vessel time chartered-in compared to $27.6 million during the prior year period, which was associated with a day weighted average of 33 vessels owned and five vessels time chartered-in. TCE revenue per day was $8,673 and $4,396 for first half of 2017 and 2016, respectively.  TCE revenue increased significantly versus the prior year due to the increase in rates, attributable to increased worldwide demand across all bulk sectors, regions and commodities, as well as a reduction in supply as fewer vessels are now on order, combined with the increase in revenue days associated with the growth of our fleet.

Vessel operating costs were $42.9 million and included approximately $1.2 million of takeover costs associated with new deliveries, and $1.3 million of non-operating expenses and related to 47 vessels owned, on average, during the first half of 2017.  Vessel operating costs for the prior year period were $30.9 million and related to 33 vessels owned, on average. Daily operating costs, excluding take over and other non-operating costs, were $4,944 in the first half of 2017. 

Charterhire expense decreased to $3.6 million for the first half of 2017 from $12.2 million in the prior year period, reflecting the reduction in the number of vessels time chartered-in from five vessels to one vessel, on a day weighted average, respectively.  Included in the prior year figures is a charterhire contract termination fee of $10.0 million incurred to terminate four time charter-in agreements. The existing time chartered-in vessel is expected to be redelivered in August 2017.  An additional time charter-in is expected to commence no later than the end of October 2017. The agreement is for two years at approximately $10,125 per day with an option to extend for one year at approximately $10,885 per day.

Depreciation increased to $23.6 million in the first half of 2017 from $16.0 million in the prior year period, reflecting the increase in our weighted average vessels owned to 47 from 33.

General and administrative expense decreased to $15.3 million from $16.4 million in the prior year period due primarily to decreases in restricted stock amortization, due to the run off of awards granted at a higher fair value, offset by an increase in administrative fees reflecting the growth of our fleet.

During the first half of 2017, we recorded a write down on assets held for sale of $17.1 million related to the sale of two Kamsarmax vessels to an unaffiliated third party and also recorded a $0.6 million adjustment related to vessels sold in the prior year.  During the first half of 2016, the Company recorded a write down 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.

During the first halves of 2017 and 2016, we wrote off $0.5 million and $2.5 million, respectively, of deferred financing costs accumulated on credit facilities for which the related vessels were sold or the commitments were otherwise reduced.

Scorpio Bulkers Inc. and Subsidiaries
Consolidated Statements of Operations
 (Amounts in thousands, except per share data)
     
    Unaudited
    Three Months Ended June 30,   Six Months Ended June 30,
    2017   2016   2017   2016
Revenue:                
Vessel revenue   $ 37,742     $ 17,374     $ 72,470     $ 27,618  
Operating expenses:                
Voyage expenses   162     2     279     67  
Vessel operating costs   21,066     15,628     42,867     30,943  
Charterhire expense   1,675     3,631     3,646     12,175  
Charterhire contract termination charge               10,000  
Vessel depreciation   12,017     8,718     23,599     16,011  
General and administrative expenses   7,556     8,599     15,284     16,385  
Loss / write down on assets held for sale           17,702     12,433  
Total operating expenses   42,476     36,578     103,377     98,014  
Operating loss   (4,734 )   (19,204 )   (30,907 )   (70,396 )
Other income (expense):                
Interest income   353     187     615     280  
Foreign exchange loss   (92 )   (20 )   (186 )   (138 )
Financial expense, net   (8,945 )   (5,711 )   (17,504 )   (12,754 )
Total other expense   (8,684 )   (5,544 )   (17,075 )   (12,612 )
Net loss   $ (13,418 )   $ (24,748 )   $ (47,982 )   $ (83,008 )
                 
Loss per common share – basic and diluted(1)   $ (0.19 )   $ (0.48 )   $ (0.67 )   $ (2.05 )
Weighted-average shares outstanding – basic and diluted(1)   71,804     51,305     71,770     40,550  

 

(1) Diluted weighted average shares outstanding excludes the impact of restricted shares for the three and six months ended June 30, 2017 and 2016, 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)
         
    Unaudited    
    June 30, 2017   December 31, 2016
Assets        
Current assets        
Cash and cash equivalents   $ 149,322     $ 101,734  
Accounts receivable   8,088     7,050  
Prepaid expenses and other current assets   5,805     6,696  
Total current assets   163,215     115,480  
Non-current assets        
Vessels, net   1,352,520     1,234,081  
Vessels under construction       180,000  
Deferred financing costs, net   3,598     3,307  
Other assets   12,817     14,289  
Total non-current assets   1,368,935     1,431,677  
Total assets   $ 1,532,150     $ 1,547,157  
         
Liabilities and shareholders’ equity        
Current liabilities        
Bank loans, net   $ 23,775     $ 13,480  
Accounts payable and accrued expenses   9,708     11,070  
Total current liabilities   33,483     24,550  
Non-current liabilities        
Bank loans, net   510,019     493,793  
Senior Notes, net   72,460     72,199  
Total non-current liabilities   582,479     565,992  
Total liabilities   615,962     590,542  
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 75,461,622 and 75,298,676 shares as of June 30, 2017 and December 31, 2016, respectively   753     753  
Paid-in capital   1,721,913     1,714,358  
Accumulated deficit   (806,478 )   (758,496 )
Total shareholders’ equity   916,188     956,615  
Total liabilities and shareholders’ equity   $ 1,532,150     $ 1,547,157  

 

Scorpio Bulkers Inc. and Subsidiaries
Statements of Cash Flows (unaudited)
(Amounts in thousands) 
     
    For the Six Months Ended June 30,
    2017   2016
Operating activities        
Net loss   $ (47,982 )   $ (83,008 )
Adjustment to reconcile net loss to net cash used by        
operating activities:        
Restricted stock amortization   7,473     9,168  
Vessel depreciation   23,599     16,011  
Amortization of deferred financing costs   2,767     1,883  
Write off of deferred financing costs   470     3,781  
Loss / write down on assets held for sale   16,471     10,555  
Changes in operating assets and liabilities:        
Decrease in accounts receivable   (1,038 )   (58 )
(Decrease) increase in prepaid expenses and other assets   (272 )   2,973  
Decrease in accounts payable and accrued expenses   (702 )   (6,904 )
Net cash provided by (used in) operating activities   786     (45,599 )
Investing activities        
Proceeds from sale of assets held for sale   44,340     271,376  
Payments on assets held for sale       (98,445 )
Payments for vessels and vessels under construction   (23,428 )   (218,542 )
Net cash provided by (used in) investing activities   20,912     (45,611 )
Financing activities        
Proceeds from issuance of common stock       128,139  
Proceeds from issuance of long-term debt   51,600     157,393  
Repayments of long-term debt   (25,710 )   (152,064 )
Debt issue costs paid       (818 )
Net cash provided by financing activities   25,890     132,650  
Increase in cash and cash equivalents   47,588     41,440  
Cash at cash equivalents, beginning of period   101,734     200,300  
Cash and cash equivalents, end of period   $ 149,322     $ 241,740  

 

Scorpio Bulkers Inc. and Subsidiaries
Other Operating Data (unaudited)
         
    Three Months Ended June 30,   Six Months Ended June 30,
    2017   2016   2017   2016
Time charter equivalent revenue ($000’s) (1):                
Vessel revenue   $ 37,743     $ 17,374     $ 72,470     $ 27,618  
Voyage expenses   (163 )   (2 )   (279 )   (67 )
Time charter equivalent revenue   $ 37,580     $ 17,372     $ 72,191     $ 27,551  
Time charter equivalent revenue attributable to:                
Kamsarmax   $ 16,312     $ 7,657     $ 31,212     $ 12,018  
Ultramax   21,268     9,715     40,979     15,533  
    $ 37,580     $ 17,372     $ 72,191     $ 27,551  
Revenue days:                
Kamsarmax   1,759     1,455     3,385     2,764  
Ultramax   2,544     1,821     4,939     3,503  
Combined   4,303     3,276     8,324     6,267  
TCE per revenue day (1):                
Kamsarmax   $ 9,273     $ 5,263     $ 9,221     $ 4,348  
Ultramax   $ 8,360     $ 5,335     $ 8,297     $ 4,434  
Combined   $ 8,733     $ 5,303     $ 8,673     $ 4,396  

 

(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 July 21, 2017
             
Vessel Name   Year Built    DWT    Vessel Type
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
SBI Jive   2017   82,000     Kamsarmax
Total Kamsarmax       1,480,000      
             
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       3,211,800      

Time chartered-in vessels

The Company currently has time chartered-in one Kamsarmax dry bulk vessel and has agreed to time charter-in one Ultramax dry bulk vessel. The terms of these contracts are summarized as follows:

Vessel Type   Year Built   DWT   Where Built   Daily Base Rate   Earliest Expiry
Kamsarmax   2012   82,000     South Korea   $ 15,500     2-Aug-17   (1 )
Ultramax   2017   62,100     Japan   $ 10,125     30-Sep-19   (2 )
Total TC DWT       144,100                  

 

(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. 
 
(2) This vessel has been time chartered-in for 22 to 24 months at the Company’s option at $10,125 per day. The Company has the option to extend this time charter for one year at $10,885 per day. The vessel is scheduled to be delivered in October 2017.

Conference Call on Results:

A conference call to discuss the Company’s results will be held today, Monday, July 24, 2017, at 9:00 AM Eastern Daylight Time / 3:00 PM Central European Time.  Those wishing to listen to the call should dial 1 (866) 219-5268 (U.S.) or 1 (703) 736-7424 (International) at least 10 minutes prior to the start of the call to ensure connection. The conference participant passcode is 52360565.

There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Webcast URL: http://edge.media-server.com/m/p/7uhppvwg 

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. owns 46 vessels, consisting of 18 Kamsarmax vessels and 28 Ultramax vessels. The Company also time charters-in one dry bulk Kamsarmax vessel and has agreed to time charter-in one Ultramax vessel. The owned fleet has a total carrying capacity of approximately 3.2 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

To supplement our financial information presented in accordance with accounting principles generally accepted in the U.S., (“GAAP”), management uses certain “non-GAAP financial measures” as such term is defined in Regulation G promulgated by the SEC. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in, or excluded from, the most directly comparable measure calculated and presented in accordance with GAAP. Management believes the presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations, and therefore a more complete understanding of factors affecting our business than GAAP measures alone. In addition, management believes the presentation of these matters is useful to investors for period-to-period comparison of results as the items may reflect certain unique and/or non-operating items such as asset sales, write-offs, contract termination costs or items outside of management’s control.

Adjusted net loss and related per share amounts are non-GAAP performance measures that we believe provide 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 (unadjusted)

In thousands, except per share data

  Six Months Ended June 30,
  2017   2016
  Amount   Per share   Amount   Per share
Net loss $ (47,982 )   $ (0.67 )   $ (83,008 )   $ (2.05 )
Adjustments:              
Loss / write down on assets held for sale 17,702     0.25     12,433     0.31  
Write down of deferred financing cost 470     0.01     2,456     0.06  
Charterhire contract termination charge         10,000     0.25  
Total adjustments $ 18,172     $ 0.26     $ 24,889     $ 0.62  
Adjusted net loss $ (29,810 )   $ (0.41 )   $ (58,119 )   $ (1.43 )

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)

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Source: Scorpio Bulkers