Adjusted EBITDA Reconciliation
Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, vessel impairments, dry-dockings and 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 and efficiency. 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 income to Adjusted EBITDA:
Three Three Months Months Nine Months Nine Months(Dollars in thousands) Ended Ended Ended Ended September September September September 30, 2011 30, 2012 30, 2011 30, 2012 ----------- ----------- ----------- -----------Net income/(loss) $ 25,026 (51,271) (63,299) $ (116,928)Add: Net interest expense 35,985 51,923 80,646 152,468Add: Depreciation and amortization 70,980 84,580 192,001 250,615Add: Impairment losses - - 112,104 -Add: Dry-dockings and class survey costs 1,700 17,033 21,412 22,763Add: Income taxes 7,778 10,975 17,556 32,603Add: Loss on interest rate swaps 31,466 27,777 71,242 49,491 ----------- ----------- ----------- -----------Adjusted EBITDA $ 172,935 141,017 431,662 $ 391,012 =========== =========== =========== ===========
Conference Call and Webcast: November 15, 2012
As announced, the Company's management team will host a conference call, on Thursday, November 15, 2012 at 9:00 a.m. Eastern Standard Time to discuss the Company's financial results.
Conference Call Details
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote "DryShips."
A replay of the conference call will be available until November 22, 2012. The United States replay number is 1(866) 247- 4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 55 00 00 and the access code required for the replay is: 2133051#.
A replay of the conference call will also be available on the Company's website at www.dryships.com under the Investor Relations section.
Slides and Audio Webcast
There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
