Star Bulk Carriers Corp. (SBLK) Q1 2012 Earnings Conference Call May 31, 2012, 11:00 a.m. ET Executives Spyros Capralos - President and CEO Simos Spyrou - CFO Analysts Natasha Boyden - Global Hunter Securities Tony Pollock - Maxim Group Presentation Operator
Another question we have been receiving recently has to do with our F3 filing. Our previous F3 registration statement expired and in order to continue using it, we had to file a new one with a same terms and conditions. This procedure is considered a standard practice for listed companies within the industry.Finally, I’d like to underline the Star Bulk Carriers is a Marshall Islands company not a Greek company. It is true that we maintain offices in Greece and our fleet is managed from these offices, but the shipping unit is global even though a potential Greek exit from the euro zone would definitely have ripple effects throughout the global economy, our business is not affected directly. If anything, the current euro weakness works in our favor, since more than 70% G&A expenses are in Euros. Let us now turn to Slide number three of the presentation to discuss our first quarter 2012 financial highlights in comparisons to last years. In the first quarter of 2012 gross revenues amounted to $28 million representing a 5% reduction versus the same period of 2011. General and administrative expenses excluding amortization of stock-based compensation were less by 54% to 1.9 million in Q1 2012 versus 4 million in Q1 2011, mainly due to the one off severance payment of 2.3 million during last year’s first quarter. Excluding this item, our recurring G&A expenses were higher by 10%. This was a result of the additional staff the company hired in order to undertake the management of the additional four Capesize and two Supramax vessels during 2011. Our net income for the first quarter 2012 amounted to $100,000 compared to 1.7 million in Q1 2011. Excluding non-cash items our net income for the first quarter amounted to $5.9 million compared to 1.3 in Q1 2011, mainly due to the 6.5 million related to the compensation for the early time charter termination of the Star Sigma.
Adjusted EBITDA for the first quarter was 17.9 million compared to 14.2 million last year. In Q1 2012, the time charter equivalent was $16,841 per day compared to $23,252 last year, representing mainly the expiration of our below market time charter agreements, the lost off-hire due to the grounding of the Star Polaris and the low freight rate environment.Our average daily operating expenses were $5,582 per vessel, 8% higher than the same period last year emanating from the 28% rise in our fleet’s average vessel size from the addition of the four new Capes. The adjusted net income of 5.9 million represent $0.07 earnings per share basic and diluted which is significantly higher than analyst consensus of $0.025 loss according to Bloomberg. Please turn now to Slide four to discuss our balance sheet profile which we believe is one of the healthiest in the dry bulk industry. First of all, I’d like to point out the we currently have zero capital expense commitments as well as no exposure to interest rate swaps, so we are able to take advantage of the prevailing low interest rate environment as all our loans are based on floating rate. As of today, total debt stands at 243.1 million and our current cash position stands at $41.9 million. Our net debt stands at around 4.4 times 2012 EBITDA. For this calculation we have annualized a Q1 2012 EBITDA and we have adjusted each for non-recurring and non-cash items. Read the rest of this transcript for free on seekingalpha.com