Vessel operating expenses: Vessel operating expenses increased by 36% to $9.8 million for the fourth quarter of 2012, compared to $7.2 million for the same period in 2011. The increase in operating expenses is attributable to the increase in ownership days by 36% to 2,171 days for the fourth quarter of 2012 from 1,602 days for the same period in 2011. Daily vessel operating expenses increased slightly by 0.5% to $4,511 for the fourth quarter of 2012 compared to $4,487 for the same period in 2011.
Depreciation: Depreciation increased by 33% to $8.8 million for the fourth quarter of 2012, compared to $6.6 million for the same period in 2011, as a result of the increase in the average number of vessels owned and operated by the Company during the fourth quarter of 2012.
Early redelivery income: During the fourth quarter of 2012, the Company recorded $11.7 million of early redelivery income, versus $0.1 million for the same period in 2011. Early redelivery income recorded in the fourth quarter of 2012 as a result of the early termination of the charter party agreements of the Maria and Martine.
Interest expense: Interest expense increased by 93% to $2.9 million for the fourth quarter of 2012, compared to $1.5 million for the same period in 2011, as a result of the increase in the average amount of loans and credit facilities by the Company during the fourth quarter of 2012.
(3) Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
Unaudited Interim Financial Information and Other Data SAFE BULKERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands of U.S. Dollars except for share and per share data) Three-Months Period Twelve-Months Period Ended December 31, Ended December 31, ---------------------- ---------------------- 2011 2012 2011 2012 ---------- ---------- ---------- ----------REVENUES: Revenues 43,715 47,191 172,036 187,557 Commissions (798) (828) (3,128) (3,261) Net revenues 42,917 46,363 168,908 184,296EXPENSES: Voyage expenses (947) (1,379) (1,987) (7,286) Vessel operating expenses (7,188) (9,793) (26,066) (34,540) Depreciation (6,571) (8,755) (23,637) (32,250) General and administrative expenses (2,471) (2,741) (8,489) (9,946) Early redelivery income 106 11,677 207 11,677 Operating income 25,846 35,372 108,936 111,951OTHER (EXPENSE) / INCOME: Interest expense (1,510) (2,885) (5,250) (9,072) Other finance costs (187) (243) (1,055) (1,268) Interest income 259 288 1,046 1,122 (Loss)/gain on derivatives (175) 65 (12,491) (5,384) Foreign currency loss (390) (15) (799) (3) Amortization and write- off of deferred finance charges (290) (359) (653) (1,226) Net income 23,553 32,223 89,734 96,120 Earnings per share 0.33 0.42 1.29 1.27Weighted average number of shares 70,894,420 76,665,956 69,463,093 75,468,465 SAFE BULKERS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands of U.S. Dollars) December 31, December 31, 2011 2012 --------------- ---------------ASSETS Cash, time deposits & restricted cash 28,121 125,524 Other current assets 9,838 46,305 Vessels, net 655,356 810,001 Advances for vessel acquisition and vessels under construction 122,307 39,902 Restricted cash non-current 5,423 3,923 Long-term investment 50,000 50,000 Other non-current assets 6,226 6,559 Total assets 877,271 1,082,214LIABILITIES AND EQUITY Current portion of long-term debt 18,486 19,199 Other current liabilities 33,187 28,294 Long-term debt, net of current portion 465,805 596,468 Other non-current liabilities 27,951 12,397 Shareholders' equity 331,842 425,856 Total liabilities and equity 877,271 1,082,214Fleet Data Three-Month Twelve-Month Period Ended Period Ended December 31, December 31, 2011 2012 2011 2012FLEET DATANumber of vessels at period end 18 24 18 24Average age of fleet (in years) 4.29 4.50 4.29 4.50Ownership days (1) 1,602 2,171 5,992 7,716Available days (2) 1,594 2,158 5,976 7,703Operating days (3) 1,588 2,154 5,962 7,654Fleet utilization (4) 99.1% 99.2% 99.5% 99.2%Average number of vessels in the period (5) 17.41 23.60 16.42 21.08AVERAGE DAILY RESULTSTime charter equivalent rate (6) $26,330 $20,845 $27,932 $22,979Daily vessel operating expenses (7) $ 4,487 $ 4,511 $ 4,350 $ 4,476
