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ATHENS, GREECE--(Marketwired - Mar 8, 2016) - DryShips Inc. (
Fourth Quarter 2015 Financial Highlights
(1) The net result includes approximately 40.44% of Ocean Rig's results, which are owned by DryShips Inc. common shareholders.
(2) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net loss.
(3) Shares and per share data does not give effect to the 1-for -25 reverse stock split, approved on February 19, 2016, which becomes effective on March 11, 2016.
Bank Update / Liquidity
Given the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates, the Company is presently engaged in discussions with its lenders for the restructuring of its debt facilities.
Three of these bank facilities have matured and the Company has not made the final balloon installment. For the remaining bank facilities, the Company has elected to suspend principal repayments to preserve cash liquidity.
The table below describes our fleet profile as of March 7, 2016:
|Rangiroa||2013||206,026||Capesize||T/C Index linked||Aug-19||Feb-20|
|Negonego||2013||206,097||Capesize||T/C Index linked||Aug-19||Feb-20|
|Fakarava||2012||206,152||Capesize||T/C Index linked||Aug-19||Feb-20|
|Rapallo||2009||75,123||Panamax||T/C Index linked||Aug-16||Oct-16|
|Mendocino||2002||76,623||Panamax||T/C Index linked||Oct-16||Dec-16|
|Bargara||2002||74,832||Panamax||T/C Index linked||Sep-16||Nov-16|
|Levanto||2001||73,925||Panamax||T/C Index linked||Aug-16||Oct-16|
|Offshore Supply fleet|
|Platform Supply Vessels:|
|Oil Spill Recovery Vessels:|
Drybulk Carrier Segment Summary Operating Data (unaudited)
(Dollars in thousands, except average daily results)
|Drybulk||Three Months Ended December 31,||Year Ended December 31,|
|Average number of vessels(1)||39.0||26.5||38.7||35.8|
|Total voyage days for vessels(2)||3,555||2,341||13,889||12,562|
|Total calendar days for vessels(3)||3,588||2,434||14,122||13,060|
|Time charter equivalent(5)||$12,974||$5,097||$12,354||$9,171|
|Vessel operating expenses (daily)(6)||$6,659||$6,528||$6,400||$6,715|
(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of dry-docking days.
(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including dry-docking days.
(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from our vessels, the most directly comparable U.S. GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite 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. Please see below for a reconciliation of TCE rates to voyage revenues.
(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.
(7) Does not include accrual for the provision of the purchase options and write off in overdue receivables under certain time charter agreements.
(In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days)
|Drybulk||Three Months Ended December 31,||Year Ended December 31,|
|Time charter equivalent revenues||$||46,124||$||11,931||$||171,586||$||115,209|
|Total voyage days for fleet||3,555||2,341||13,889||12,562|
|Time charter equivalent TCE||$||12,974||$||5,097||$||12,354||$||9,171|
|Unaudited Condensed Consolidated Statements of Operations|
|(Expressed in Thousands of U.S. Dollars except for share and per share data)||
Three Months Ended December 31,
|Year Ended December 31,|
|Revenues from drilling contracts||499,366||-||1,817,077||725,805|
|Vessel operating expenses||30,537||20,271||116,428||111,451|
|Drilling rigs and drillships operating expenses||194,815||-||727,832||259,623|
|Depreciation and amortization||116,254||672||449,792||227,652|
|Vessels impairment, loss on sales and other||38,148||119,054||39,455||1,085,357|
|General and administrative expenses||54,610||14,814||193,686||104,912|
|Legal settlements and other, net||(3,454||)||(145||)||(2,013||)||(2,948||)|
|OTHER INCOME / (EXPENSES):|
|Interest and finance costs, net of interest income||(87,679||)||(3,020||)||(398,875||)||(171,605||)|
|Gain/(Loss) on interest rate swaps||(7,683||)||718||(15,528||)||(11,601||)|
|Total other expenses, net||(127,075||)||(5,107||)||(485,159||)||(229,600||)|
|Loss due to deconsolidation of Ocean Rig||-||-||-||(1,347,106||)|
|Equity in loss of affiliate||-||(387,281||)||-||(349,872||)|
|Net (income)/ loss attributable to Non controlling interests||(35,425||)||54||(105,532||)||(38,975||)|
|Net loss attributable to DryShips Inc.||$||(23,997||)||$||(527,619||)||$||(47,512||)||$||(2,847,061||)|
|Net loss attributable to DryShips Inc. common stockholders||(24,161||)||(527,619||)||(48,209||)||(2,847,631||)|
|Loss per common share, basic and diluted (1)||$||(0.04||)||$||(0.79||)||$||(0.11||)||$||(4.28||)|
|Weighted average number of shares, basic and diluted (1)||586,693,626||665,186,756||456,031,628||664,959,017|
(1) Shares and per share data does not give effect to the 1-for-25 reverse stock split, approved on February 19, 2016, which becomes effective on March 11, 2016.
|Unaudited Condensed Consolidated Balance Sheets|
|(Expressed in Thousands of U.S. Dollars)||December 31, 2014||December 31, 2015|
|Cash, cash equivalents and restricted cash (current and non-current)||$||658,936||$||15,026|
|Assets held for sale||-||216,026|
|Other current assets||568,341||38,015|
|Advances for vessels and drillships under construction and related costs||623,984||-|
|Drilling rigs, drillships, machinery and equipment, net||6,259,747||-|
|Investment in affiliate||-||91,410|
|Other non-current assets||118,978||19,147|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Liabilities held for sale||-||104,366|
|Total other liabilities||563,602||13,332|
|Total stockholders' equity||4,290,388||121,412|
|Total liabilities and stockholders' equity||$||10,371,603||$||476,052|
Adjusted EBITDA Reconciliation
Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel and investment impairments and certain other non-cash items as described below, dry-dockings, class survey costs and gains or losses on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by our lenders as a measure of our compliance with certain covenants contained in our loan agreements and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.
The following table reconciles net loss to Adjusted EBITDA:
|(Dollars in thousands)||Three Months Ended December 31, 2014||Three Months Ended December 31, 2015||Year Ended December 31, 2014||Year Ended December 31, 2015|
|Net loss attributable to Dryships Inc||$||(23,997||)||$||(527,619||)||$||(47,512||)||$||(2,847,061||)|
|Add: Net interest expense||87,679||3,020||398,875||171,605|
|Add: Depreciation and amortization||116,254||672||449,792||227,652|
|Add: Dry-dockings and class survey costs||1,513||3,393||8,819||23,686|
|Add: Impairments losses on sales and other||38,148||119,054||39,455||1,108,587|
|Add: Loss due to deconsolidation of Ocean Rig||-||-||-||1,347,106|
|Add: Income taxes||35,950||188||77,823||37,119|
|Add: Gain /(loss) on interest rate swaps||7,683||(718||)||15,528||11,601|
|Add: Equity in loss of affiliate||-||387,281||-||349,872|
|Add: Net income/(loss) attributable to Non controlling interests||35,425||(54||)||105,532||38,975|
About DryShips Inc.
DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide. DryShips also owns approximately 40% of the outstanding shares of Ocean Rig UDW Inc. (
DryShips' common stock is listed on the NASDAQ Capital Market where it trades under the symbol "DRYS."
Visit the Company's website at www.dryships.com
Matters discussed in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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 such safe harbor legislation.
Forward-looking statements reflect our current views with respect to future events and financial performance and may 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 forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, 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 it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and dayrates and vessel and drilling dayrates and drybulk vessel, drilling rig and drillship values, failure of a seller to deliver one or more vessels or drilling units, drillships or drybulk vessels, failure of a buyer to accept delivery of a drilling rig, drillship, or vessel, inability to procure acquisition financing, default by one or more customers, changes in demand for drybulk commodities or oil, changes in demand that may affect attitudes of time charterers and customer drilling programs, scheduled and unscheduled drydockings and upgrades, changes in our operating expenses, including bunker prices, drydocking and insurance costs, complications associated with repairing and replacing equipment in remote locations, limitations on insurance coverage, such as war risk coverage, in certain areas, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by DryShips Inc. with the U.S. Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F.
Investor Relations / Media:
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