UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of April 2018

Commission File Number: 001-36231
 

SCORPIO BULKERS INC.
(Translation of registrant's name into English)
 

9, Boulevard Charles III, Monaco 98000
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x   Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o.

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o.

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.















­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
 






INFORMATION CONTAINED IN THIS FORM 6-K REPORT
 
Attached as Exhibit 99.1 is a copy of the press release of Scorpio Bulkers Inc. (the “Company”), dated April 23, 2018, announcing financial results for the first quarter of 2018.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company's registration statement on Form F-3 (File No. 333-217445), the Company's registration statement on Form F-3 (File No. 333-221441), the Company's registration statement on Form F-3 (File No. 333-222013) and the Company's registration statement on Form F-3 (File No. 333-221448).










SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
                    
 
 
 SCORPIO BULKERS INC.
 
 
(registrant)
 
 
 
 
 
 
Dated:
April 23, 2018
By: /s/ Hugh Baker
 
 
Hugh Baker
 
 
Chief Financial Officer
 
 
 



Exhibit
EXHIBIT 99.1


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12197933&doc=3
Scorpio Bulkers Inc. Announces Financial Results for the First Quarter of 2018 and Declares a Quarterly Dividend
MONACO - April 23, 2018 (GLOBE NEWSWIRE) - Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers”, or the “Company”), today reported its results for the three months ended March 31, 2018.
The Company also announced today that its Board of Directors has declared a quarterly cash dividend of $0.02 per share on the Company’s common stock.
Results for the Three Months Ended March 31, 2018 and 2017
For the first quarter of 2018, the Company’s GAAP net loss was $5.8 million, or $0.08 loss per diluted share. For the same period in 2017, the Company’s GAAP net loss was $34.6 million, or $0.48 loss per diluted share. Total vessel revenues for the first quarter of 2018 were $54.3 million, compared to $34.7 million for the same period in 2017. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the first quarter of 2018 and 2017 were $20.4 million and a loss of $10.8 million, respectively (see Non-GAAP Financial Measures below).
While the first quarter of 2018 included no non-GAAP adjustments to net income, the Company’s first quarter 2017 net income included a loss/write off of vessels and assets held for sale of $17.7 million and the write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. Excluding these items, the Company’s first quarter 2017 adjusted net loss was $16.4 million, or $0.22 adjusted loss per diluted share. Adjusted EBITDA for the first quarter ended March 31, 2017 was $6.9 million (see Non-GAAP Financial Measures below).
TCE Revenue
TCE Revenue Earned during the First Quarter of 2018

Our Kamsarmax fleet earned $12,881 per day
Our Ultramax fleet earned $9,757 per day
Voyages Fixed thus far for the Second Quarter of 2018
Kamsarmax fleet: approximately $13,250 per day for 56% of the days
Ultramax fleet: approximately $11,925 per day for 48% of the days
Cash and Cash Equivalents
As of April 20, 2018, the Company had approximately $55.0 million in cash and cash equivalents.
Recent Significant Events
Share Repurchase Program
During the first quarter of 2018, the Company repurchased approximately 1.2 million shares of its common stock under the Board of Directors authorized stock repurchase program at a cost of approximately $8.6 million, or at an average cost of $7.39 per share, which was funded from available cash resources. As of April 20, 2018, approximately $30.4 million of the $50.0 million authorized remains available for the repurchase of the Company’s common stock in open market or privately negotiated transactions. The specific timing and amounts of any repurchases will be in the sole discretion of management and may vary based on market conditions and other factors and the Company is not obligated under the terms of the program to repurchase any of its common stock. The authorization has no expiration date.
Dividend

1



In the first quarter of 2018, the Company’s Board of Directors declared and the Company paid a quarterly cash dividend of $0.02 per share totaling approximately $1.5 million.
On April 20, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per share, payable on or about May 31, 2018, to all shareholders of record as of May 15, 2018. As of April 20, 2018, 75,971,175 shares were outstanding.
Debt
$12.8 Million Credit Facility
On April 3, 2018, the Company received a commitment for a loan facility of up to $12.75 million from a leading European financial institution to finance the Company’s Kamsarmax bulk carrier to be delivered from Jiangsu New Yangzijiang Shipbuilding Co Ltd in China in the third quarter of 2018. The loan facility will have a final maturity date of June 15, 2023 and bears interest at LIBOR plus a margin of 2.40% per annum. The terms and conditions will be similar to those set forth in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.

$19.0 Million Lease Financing

On April 17, 2018, the Company entered into a financing transaction in respect of one of its Ultramax vessels with an unaffiliated third party involving the sale and leaseback of the SBI Tango, a 2015 Japanese built Ultramax vessel, for consideration of approximately $19.0 million. As part of the transaction, the Company will make payments of $5,400 per day under a five-year bareboat charter agreement with the buyer. If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at the then prevailing swap rates would be LIBOR + 1.73%.
The transaction also provides the Company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement. This transaction, which shall be treated as a financial lease for accounting purposes, increases the Company’s liquidity by approximately $10.3 million after repayment of the vessel’s existing loan. 

Debt Overview

The Company’s outstanding debt balance, gross of unamortized deferred financing costs as of March 31, 2018 and April 20, 2018, are as follows (dollars in thousands):
 
 
As of March 31, 2018
 
As of April 20, 2018
Credit Facility
 
Amount Outstanding
 
Amount Outstanding
 
Amount Committed
Senior Notes
 
$
73,625

 
$
73,625

 
$

$409 Million Credit Facility
 
171,549

 
171,549

 

$330 Million Credit Facility
 
241,746

 
241,746

 

$42 Million Credit Facility *
 
22,354

 
22,354

 

$67.5 Million Credit Facility
 
39,459

 
39,247

 

$12.5 Million Credit Facility
 
9,988

 
9,988

 

$27.3 Million Credit Facility
 
17,825

 
17,825

 

$85.5 Million Credit Facility
 
83,868

 
83,868

 

$38.7 Million Credit Facility
 
37,800

 
37,800

 
 
$19.6 Million Lease Financing
 
18,978

 
18,978

 

$12.8 Million Credit Facility **
 

 

 
12,750

$19.0 Million Lease Financing
 

 

 
19,000

Total
 
$
717,192

 
$
716,980

 
$
31,750

* $8.2 million to be repaid upon the drawdown of the $19.0 Million Lease Financing
** Reflects the maximum loan amount available on undrawn vessel.

2



The Company’s projected quarterly debt repayments on our bank loans and senior notes and bareboat charter payments on our finance leases through 2019 are as follows (dollars in thousands):
 
 
Principal on Bank Loans and Senior Notes
 
Finance Lease
 
Total
Q2 2018 (1)
 
$20,196
 
$821
 
$21,017
Q3 2018
 
11,729

 
986

 
12,715

Q4 2018
 
11,494

 
986

 
12,480

Q1 2019
 
10,791

 
986

 
11,777

Q2 2019
 
10,833

 
986

 
11,819

Q3 2019 (2)
 
84,466

 
986

 
85,452

Q4 2019
 
12,795

 
986

 
13,781

Total
 
$162,304
 
$6,737
 
$169,041
(1)
Relates to payments expected to be made from April 21, 2018 to June 30, 2018 and includes $8.2 million to be repaid upon the drawdown of the $19.0 Million Lease Financing.
(2)
Includes $73.6 million repayment of Senior Notes due at maturity.
Financial Results for the Three Months Ended March 31, 2018 Compared to the Three Months Ended March 31, 2017
For the first quarter of 2018, the Company’s GAAP net loss was $5.8 million, or $0.08 loss per diluted share. For the same period in 2017, the Company’s GAAP net loss was $34.6 million, or $0.48 loss per diluted share. Earnings before interest, taxes, depreciation and amortization for the first quarters of 2018 and 2017 were $20.4 million and a loss of $10.8 million, respectively (see Non-GAAP Financial Measures). Excluding the loss/write off of vessels and assets held for sale of $17.7 million and the write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million, the Company’s adjusted net loss for the first quarter of 2017 was $16.4 million, or $0.22 adjusted loss per diluted share (see Non-GAAP Financial Measures below). There were no such non-GAAP adjustments to the Company’s first quarter 2018 net income.
Total vessel revenues for the first quarter of 2018 were $54.3 million, an increase of $19.6 million from $34.7 million in the first quarter of 2017. Our TCE revenue (see Non-GAAP Financial Measures) for the first quarter of 2018 was $54.1 million, an increase of $19.4 million from the first quarter of 2017. First quarter 2018 revenues were driven by high levels of demand for coal and grains for the better part of the quarter.
Total operating expenses for the first quarter of 2018 were $49.8 million compared to $60.9 million in the first quarter of 2017. The quarter over quarter decrease relates to the loss/write off of vessels and assets held for sale of $17.7 million recorded in the first quarter of 2017, offset in part by increases in vessel operating costs and depreciation resulting from the increase in the size of our fleet.

3



Ultramax Operations
 
Three Months Ended March 31,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
33,330

 
$
19,760

 
$
13,570

 
69
Voyage expenses
128

 
49

 
79

 
161
TCE Revenue
$
33,202

 
$
19,711

 
$
13,491

 
68
Operating expenses:
 
 
 
 

 

Vessel operating costs
17,236

 
12,145

 
5,091

 
42
Charterhire expense
915

 
10

 
905

 
NA
Vessel depreciation
9,190

 
7,023

 
2,167

 
31
General and administrative expense
1,073

 
839

 
234

 
28
Total operating expenses
$
28,414

 
$
20,017

 
$
8,397

 
42
Operating income (loss)
$
4,788

 
$
(306
)
 
$
5,094

 
1,665
Vessel revenue for our Ultramax Operations increased to $33.3 million for the first quarter of 2018 from $19.8 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Ultramax Operations was $33.2 million for the first quarter of 2018 and was associated with a day-weighted average of 37 vessels owned and one time chartered-in vessel, compared to $19.7 million for the prior year period, which was associated with a day-weighted average of 28 vessels owned. TCE revenue per day was $9,757 and $8,230 for the three months ended March 31, 2018 and 2017, respectively. The market in the first quarter was comparatively strong to previous year’s with two major factors keeping levels buoyant. A strong Atlantic U.S. Gulf market in the fourth quarter of 2017 was sustained well into February 2018 due to strong coal exports and residual grain movement coupled with strong Pacific coal imports from Indonesia to China at the beginning of March 2018.  
Dollars in thousands
Three Months Ended March 31,
 
 
 
 
Ultramax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
33,202

 
$
19,711

 
$
13,491

 
68
TCE Revenue / Day
$
9,757

 
$
8,230

 
$
1,527

 
19
Revenue Days
3,403

 
2,395

 
1,008

 
42
Our Ultramax Operations vessel operating costs were $17.2 million for the first quarter of 2018, including approximately $0.9 million of takeover costs and contingency expenses and related to 37 vessels owned, on average during the period. Vessel operating costs for the prior year period were $12.1 million and related to 28 vessels owned, on average during the period. Daily operating costs excluding other non-operating expenses for the first quarters of 2018 and 2017 were $4,909 and $4,929, respectively. Sequentially, daily operating costs increased from $4,749 in the fourth quarter of 2017 due in large part to seasonality.
Charterhire expense for our Ultramax Operations was approximately $0.9 million for the first quarter of 2018, and relates to the vessel we have time chartered-in at $10,125 per day.
Ultramax Operations depreciation increased to $9.2 million in the first quarter of 2018 from $7.0 million in the prior year period reflecting the increase in our weighted average vessels owned to 37 from 28.
General and administrative expense for our Ultramax Operations was $1.1 million for the first quarter of 2018 and $0.8 million in the prior year period. General and administrative expenses consist primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions. The increase versus the prior year period reflects the growth of our fleet.

4



Kamsarmax Operations
 
Three Months Ended March 31,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
20,923

 
$
14,968

 
$
5,955

 
40

Voyage expenses
68

 
68

 

 

TCE Revenue
$
20,855

 
$
14,900

 
$
5,955

 
40

Operating expenses:
 
 
 
 

 

Vessel operating costs
8,571

 
9,661

 
(1,090
)
 
(11
)
Charterhire expense
90

 
1,961

 
(1,871
)
 
(95
)
Vessel depreciation
4,678

 
4,559

 
119

 
3

General and administrative expense
507

 
536

 
(29
)
 
(5
)
Loss / write down on assets held for sale

 
17,131

 
(17,131
)
 
(100
)
Total operating expenses
$
13,846

 
$
33,848

 
$
(20,002
)
 
(59
)
Operating income (loss)
$
7,009

 
$
(18,948
)
 
$
25,957

 
137

Vessel revenue for our Kamsarmax Operations increased to $20.9 million in the first quarter of 2018 from $15.0 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Kamsarmax Operations was $20.9 million for the first quarter of 2018 and was associated with a day-weighted average of 18 vessels owned, compared to $14.9 million for prior year period, which was associated with a day-weighted average of 19 vessels owned and one vessel time chartered-in. TCE revenue per day was $12,881 and $9,164 for the first quarters of 2018 and 2017, respectively. The Kamsarmax market in the first quarter of 2018 was the best it has experienced in recent history. Initially mineral driven; in the Atlantic with significant exports from the East Coast of the U.S. and Colombia into Europe and India, in the Pacific due to strong Chinese pre-Chinese New Year imports, as well as Indian coal imports from Indonesia and Australia. After the Chinese New Year, activity started to slow down but expectations of a strong second quarter of 2018, driven by grain expectations, kept curves in contango and allowed owners to achieve premium rates for longer employments.

Dollars in thousands

Three Months Ended March 31,
 
 
 
 
Kamsarmax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
20,855

 
$
14,900

 
$
5,955

 
40

TCE Revenue / Day
$
12,881

 
$
9,164

 
$
3,717

 
41

Revenue Days
1,619

 
1,626

 
(7
)
 

Kamsarmax Operations vessel operating costs were $8.6 million for the first quarter of 2018, including approximately $0.2 million of contingency expenses, related to 18 vessels owned, on average during the period. Vessel operating costs for the prior year period were $9.7 million and related to 19 vessels owned, on average during the period. Daily operating costs excluding takeover and other non-operating expenses for the first quarters of 2018 and 2017 were $5,172 and $5,207, respectively. Sequentially, daily operating costs increased from $4,943 in the fourth quarter of 2017 due in large part to seasonality.
While we do not time charter-in any Kamsarmax vessels, we have a profit and loss sharing agreement with a third party and during the first quarter of 2018, our share of the loss on that vessel was $0.1 million. During the prior year period, two Kamsarmax vessels were time chartered-in resulting in charterhire expense of $2.0 million.
Kamsarmax Operations depreciation remained relatively flat at $4.7 million in the first quarter 2018 compared to $4.6 million in the prior year period. Our weighted average vessels owned was 18 and 19, in the first quarter of 2018 and 2017, respectively.

5



General and administrative expense for our Kamsarmax Operations was $0.5 million for both the first quarters of 2018 and 2017. The expense consists primarily of administrative services fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions.
During the first quarter 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. 
Corporate
Certain general and administrative expenses we incur and all of our financial expenses are not attributable to a specific segment. Accordingly, these costs are not allocated to any of our segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were $7.3 million and $6.4 million in the first quarters of 2018 and 2017, respectively.
Financial expenses increased to $10.2 million in the first quarter of 2018 from $8.4 million in the prior year period due to an increase in the LIBOR rate and higher levels of debt. During the first quarter of 2017, we wrote off $0.5 million of deferred financing costs accumulated on credit facilities for which the related vessels were sold.



6

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


 
 
Unaudited
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Revenue:
 
 
 
 
Vessel revenue
 
$
54,253

 
$
34,728

Operating expenses:
 


 


Voyage expenses
 
196

 
117

Vessel operating costs
 
25,806

 
21,801

Charterhire expense
 
1,005

 
1,971

Vessel depreciation
 
13,868

 
11,582

General and administrative expenses
 
8,910

 
7,728

Loss / write down on assets held for sale
 

 
17,702

Total operating expenses
 
49,785

 
60,901

Operating income (loss)
 
4,468

 
(26,173
)
Other income (expense):
 
 

 
 
Interest income
 
214

 
262

Foreign exchange loss
 
(87
)
 
(94
)
Financial expense, net
 
(10,367
)
 
(8,559
)
Total other expense
 
(10,240
)
 
(8,391
)
Net loss
 
$
(5,772
)
 
$
(34,564
)
 
 
 
 
 
Loss per common share - basic and diluted
 
$
(0.08
)
 
$
(0.48
)
Weighted-average shares outstanding - basic and diluted
 
72,702

 
71,735



7

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

 
 
Unaudited
 
 
 
 
March 31, 2018
 
December 31, 2017
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
52,788

 
$
68,535

Accounts receivable
 
9,282

 
7,933

Prepaid expenses and other current assets
 
6,922

 
6,087

Total current assets
 
68,992

 
82,555

Non-current assets
 
 

 
 

Vessels, net
 
1,521,073

 
1,534,782

Vessels under construction
 
9,717

 
6,710

Deferred financing costs, net
 
2,811

 
3,068

Other assets
 
16,095

 
16,295

Total non-current assets
 
1,549,696

 
1,560,855

Total assets
 
$
1,618,688

 
$
1,643,410

 
 
 
 
 
Liabilities and shareholders’ equity
 
 

 
 

Current liabilities
 
 

 
 

Bank loans, net
 
$
44,707

 
$
46,993

Capital lease obligation
 
1,156

 
1,144

Accounts payable and accrued expenses
 
11,858

 
10,453

Total current liabilities
 
57,721

 
58,590

Non-current liabilities
 
 

 
 

Bank loans, net
 
567,119

 
576,967

Capital lease obligation
 
17,447

 
17,747

Senior Notes, net
 
72,856

 
72,726

Total non-current liabilities
 
657,422

 
667,440

Total liabilities
 
715,143

 
726,030

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 75,971,175 and 74,902,364 shares as of March 31, 2018 and December 31, 2017, respectively
 
785

 
762

Paid-in capital
 
1,746,403

 
1,745,844

Common stock held in treasury, at cost; 2,635,413 and 1,465,448 shares at March 31, 2018 and December 31, 2017, respectively
 
(19,649
)
 
(11,004
)
Accumulated deficit
 
(823,994
)
 
(818,222
)
Total shareholders’ equity
 
903,545

 
917,380

Total liabilities and shareholders’ equity
 
$
1,618,688

 
$
1,643,410



8

Scorpio Bulkers Inc. and Subsidiaries
Statements of Cash Flows (unaudited)
(Amounts in thousands)

 
 
For the Three Months Ended March 31,
 
 
2018
 
2017
Operating activities
 
 
 
 
Net loss
 
$
(5,772
)
 
$
(34,564
)
Adjustment to reconcile net loss to net cash used by
 
 
 
 

operating activities:
 
 
 
 

Restricted stock amortization
 
2,125

 
3,862

Vessel depreciation
 
13,868

 
11,582

Amortization of deferred financing costs
 
1,482

 
1,360

Write off of deferred financing costs
 

 
470

Loss / write down on assets held for sale
 

 
16,471

Changes in operating assets and liabilities:
 
 

 
 

(Decrease) increase in accounts receivable
 
(1,349
)
 
1,337

Increase in prepaid expenses and other assets
 
(635
)
 
(697
)
Increase (decrease) in accounts payable and accrued expenses
 
1,405

 
(1,556
)
Net cash provided by (used in) operating activities
 
11,124

 
(1,735
)
Investing activities
 
 

 
 

Payments for vessels and vessels under construction
 
(3,166
)
 
(22,421
)
Net cash used in investing activities
 
(3,166
)
 
(22,421
)
Financing activities
 
 

 
 

Proceeds from issuance of long-term debt
 

 
51,600

Repayments of long-term debt
 
(13,431
)
 
(2,580
)
Common stock repurchased
 
(8,645
)
 

Dividend paid
 
(1,542
)
 

Debt issue costs paid
 
(87
)
 

Net cash (used in) provided by financing activities
 
(23,705
)
 
49,020

(Decrease) increase in cash and cash equivalents
 
(15,747
)
 
24,864

Cash at cash equivalents, beginning of period
 
68,535

 
101,734

Cash and cash equivalents, end of period
 
$
52,788

 
$
126,598



9

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


 
 
Three Months Ended March 31,
 
 
2018
 
2017
Time charter equivalent revenue ($000’s) (1):
 
 
 
 
Vessel revenue
 
$
54,253

 
$
34,728

Voyage expenses
 
(196
)
 
(117
)
Time charter equivalent revenue
 
$
54,057

 
$
34,611

Time charter equivalent revenue attributable to:
 
 

 
 

Kamsarmax
 
$
20,855

 
$
14,900

Ultramax
 
33,202

 
19,711

 
 
$
54,057

 
$
34,611

Revenue days:
 
 

 
 

Kamsarmax
 
1,619

 
1,626

Ultramax
 
3,403

 
2,395

Combined
 
5,022

 
4,021

TCE per revenue day (1):
 
 

 
 

Kamsarmax
 
$
12,881

 
$
9,164

Ultramax
 
$
9,757

 
$
8,230

Combined
 
$
10,764

 
$
8,608

(1)
We define Time Charter Equivalent (TCE) revenue as vessel 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 vessel 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. See Non-GAAP Financial Measures.


10




Fleet List as of April 20, 2018
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
SBI Gemini
 
2015
 
64,000

 
Ultramax
SBI Libra
 
2017
 
64,000

 
Ultramax

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Vessel Name
 
Year Built
 
 DWT
 
 Vessel Type
SBI Puma
 
2014
 
64,000

 
Ultramax
SBI Jaguar
 
2014
 
64,000

 
Ultramax
SBI Cougar
 
2015
 
64,000

 
Ultramax
SBI Aries
 
2015
 
64,000

 
Ultramax
SBI Taurus
 
2015
 
64,000

 
Ultramax
SBI Pisces
 
2016
 
64,000

 
Ultramax
SBI Virgo
 
2017
 
64,000

 
Ultramax
Total Ultramax
 
 
 
2,307,800

 
 
Total Owned or Finance Leased Vessels DWT
 
3,787,800

 
 
Time chartered-in vessels
The Company currently time charters-in one Ultramax vessel. The terms of the contract are summarized as follows:
Vessel Type
 
Year Built
 
DWT
 
Country of Build
 
Daily Base Rate
 
Earliest Expiry
Ultramax
 
2017
 
62,100

 
Japan
 
$
10,125

 
30-Sep-19
 
(1) 
Total TC DWT
 
 
 
62,100

 
 
 
 

 
 
 
 
(1)
This vessel is 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 was delivered to the Company in September 2017.
Vessel Under Construction
Kamsarmax Vessel
Vessel Name
 
Expected Delivery
 
 DWT
 
Shipyard
Hull 2215 - TBN SBI Lynx
 
Q3-18
 
82,000

 
Jiangsu Yangzijiang Shipbuilding Co. Ltd.
Total Kamsarmax Newbuilding DWT
 
82,000

 
 




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Conference Call on Results:
A conference call to discuss the Company’s results will be held today, Monday, April 23, 2018, at 11:00 AM Eastern Daylight Time / 5:00 PM Central European Summer 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 2560928.

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://edge.media-server.com/m6/p/28u2nckc
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities.  Scorpio Bulkers Inc. has an operating fleet of 56 vessels consisting of 55 wholly-owned or finance leased drybulk vessels (including 18 Kamsarmax vessels and 37 Ultramax vessels), and one time chartered-in Ultramax vessel. In addition, one Kamsarmax vessel which is being constructed at Jiangsu New Yangzijiang Shipbuilding Co Ltd in China is expected to be delivered to the Company in the third quarter of 2018. Upon final delivery of the last vessel, the Company’s owned and finance leased fleet is expected to have a total carrying capacity of approximately 3.9 million dwt and all of the Company’s owned vessels will have carrying capacities of greater than 60,000 dwt. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.




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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.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net loss and related per share amounts, as well as adjusted EBITDA and TCE Revenue 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. Please see below for reconciliations of EBITDA, adjusted net loss and related per share amounts, and adjusted EBITDA. Please see “Other Operating Data” for a reconciliation of TCE revenue.
EBITDA (unaudited)
 
For the Three Months Ended March 31,
In thousands
2018
 
2017
Net loss
$
(5,772
)
 
(34,564
)
Add Back:
 
 
 
Net interest expense
8,671

 
6,467

Depreciation and amortization (1)
17,475

 
17,275

EBITDA
$
20,374

 
(10,822
)
(1) Includes depreciation, amortization of deferred financing costs and restricted stock amortization.
Adjusted net loss (unaudited)
 
For the Three Months Ended March 31,
In thousands, except per share data
2017
 
Amount
 
Per share
Net loss
$
(34,564
)
 
$
(0.48
)
Adjustments:
 
 
 
Loss / write down on assets held for sale
17,702

 
0.25

Write down of deferred financing cost
470

 
0.01

Total adjustments
$
18,172

 
$
0.26

Adjusted net loss
$
(16,392
)
 
$
(0.22
)

14



Adjusted EBITDA (unaudited)
 
For the Three Months Ended March 31,
In thousands
 
2017
Net loss
 
$
(34,564
)
Impact of Adjustments
 
18,172

Adjusted net loss
 
(16,392
)
Add Back:
 
 
Net interest expense
 
6,467

Depreciation and amortization (1)
 
16,805

Adjusted EBITDA
 
$
6,880

(1) Includes depreciation, amortization of deferred financing costs and restricted stock amortization.


15



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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