Star Bulk Carriers Corporation ( SBLK) Q2 2011 Earnings Conference Call August 10, 2011 11:00 AM ET Executives Spyros Capralos - President and CEO George Syllantavos - CFO Analysts James Woods - FBR & Co Natasha Boyden - Cantor Fitzgerald Michael Pak - Clarkson Capital Markets Presentation Operator
Previous Statements by SBLK
» Star Bulk Carriers CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Star Bulk Carrier CEO Discusses Q4 2010 - Earnings Call Transcript
» Star Bulk Carriers CEO Discusses Q3 2010 Results - Earnings Call Transcript
» Star Bulk Carriers Corp. Q2 2010 Earnings Call Transcript
As of this Monday, August 8, our senior debt stood at $257 million. The senior debt figure includes both the $31 million loan facility of ABN Amro for the acquisition of Star Big and Star Mega, as well as approximately $43 million debt from the Credit Agricole loan facility for the financing of the two new buildings.The company is in full compliance with bank covenants for all our loan facilities. Important to mention is that we have zero CapEx commitments for the two cape new buildings with $21 million available from the Credit Agricole loan facility. On the other hand, the CapEx remaining for the Star Mega is $7 million. I would like to note that we expect to take delivery of Star Mega within next week. Our principal repayment commitments for this year are down substantially compared to last year since our loan repayment schedules were intentionally designed to be front-loaded. Specifically, as you can see in the graph, during 2010, our principal repayments stood at $68 million, while our remaining repayment commitments for 2011 stand at around $15 million from $37 million at the beginning of the year, $38 million for 2012 and $36 million for $2013. This loan repayment schedule includes the undrawn portions of both the ABN Amro loan regarding Star Mega and the Credit Agricole loan regarding to the two new buildings. I would like to inform my investors that our current cash position stands at $52 million. Lastly, I would like to reiterate that Starbulk has reduced its exposure to interest rate swaps and we are taking the full benefit of the prevailing low interest rates as all of our loans are on floating rate basis. Please turn to slide four to discuss our first half and second quarter 2011 financial highlights. For the first half of 2011, gross revenue amounted to $52.2 million and net income amounted to $3.4 million. Excluding non-cash items, our net income for the first half of 2011, amounted to $3.6 million.
Adjusted EBITDA for the first half of 2011 was $29 million, while average daily operating expenses were $5,360 per vessel. The Time Charter equivalent in the first half of 2011 was 20,943 per day. The adjusted net income of $3.6 million represents $0.06 earnings per share basic and diluted.In the second quarter of this year, gross revenue amounted to $22.7 million and net income amounted to $1.7 million. Excluding non-cash items, our net income for the second quarter of 2011 amounted to $2.2 million. Adjusted EBITDA for the second quarter of 2011 was $15.1 million while average daily operating expenses were $5547 per vessel. The Time Charter equivalent was $18,664 per day. The adjusted net income of $2.2 million represents $0.03 earnings per share basic and diluted which is $0.09 above Bloomberg consensus. Turning to slide number five. I would like to point out in this slide that since reinstating, reinstituting the dividend in the second quarter of 2009, we have rewarded shareholders with nine consecutive quarterly dividends. Our dividends represent a meaningful yield which currently is the highest within the drybulk universe exceeding 14% on an annualized basis calculated as of yesterday’s close. As you can see on the graph, only four out of the ten US listed drybulk peers have distributed dividends to their shareholders in 2011. Again, Starbulk having the highest yield. I would like to remind our investors that Starbulk is one of the few companies in the drybulk industry that has consistently paid dividends since inception. Slide six illustrates our modern fleet of drybulk vessels consisting of 12 drybulk carriers with two fully funded capesize new buildings on their way to being delivered in the fourth quarter of 2011 and with the addition of the Star Mega to our fleet, within next week we’ll have increased our operating fleet by 75% in terms of cargo carrying capacity from the beginning of this year. Read the rest of this transcript for free on seekingalpha.com