UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2011
Commission File Number 001-33922
DRYSHIPS INC.
80 Kifissias Avenue
Amaroussion 15125, Athens Greece
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ].
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ].
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 1 is a press release of DryShips Inc. (the Company) dated March 30, 2011: DryShips Inc. Reports Financial and Operating Results for the Fourth Quarter 2010.
Exhibit 1
DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING
RESULTS FOR THE FOURTH QUARTER 2010
March 30, 2011, Athens, Greece. DryShips Inc. (NASDAQ: DRYS), or the Company, a global provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., of off-shore contract drilling oil services, today announced its unaudited financial and operating results for the fourth quarter and year ended December 31, 2010.
Fourth quarter 2010 Financial Highlights
Ø
For the fourth quarter of 2010, the Company reported net income of $99.7 million, or $0.31 basic and $0.29 diluted earnings per share. Included in the fourth quarter 2010 results are various items, totaling $16.7 million, or $0.06 per share which are described below. Excluding these items, net income would have amounted to $83.0 million or $0.25 basic and $0.24 diluted earnings per share.
o
Included in the fourth quarter 2010 results are non-cash amortization of debt issuance costs, including those relating to our convertible senior notes, totaling $10.2 million, or $0.03 per share.
o
Included in the fourth quarter 2010 results are gains incurred on our interest rate swaps, amounting to $26.9 million, or $0.09 per share.
Ø
Basic earnings per share for the fourth quarter of 2010 includes a reduction to net income amounting to $3.8 million relating to the cumulative payment-in-kind dividends on the Series A Convertible Preferred Stock, which reduces the income available to common shareholders.
Ø
The Company reported adjusted EBITDA of $129.3 million for the fourth quarter of 2010.1
George Economou, Chairman and Chief Executive Officer of the Company commented:
We are pleased to report another solid quarter of operating results and the successful achievement of a number of milestones that were initiated over the last two years. Most of these positive developments stem from the offshore drilling segment as we have successfully concluded two vital financings. The restructuring of the Deutsche Bank led facility for newbuilding drillship Ocean Rig Poseidon allows for immediate drawdown and signifies the support of our bankers and the benefits of our commercial decision to charter the Ocean Rig Poseidon to Petrobras. We were also able to achieve competitive financing terms in a challenging market with the new $800 million facility led by Nordea and ABN-AMRO. Giving effect to the drawdown of these two facilities along with cash on hand we will have secured financing for all of our four drillships while the Ocean Rig Mykonos facility also remains available for drawdown. We are now focused on taking delivery of the remaining drillships and ensuring drilling operations start at the earliest. We remain committed to registering the Ocean Rig shares on an exchange at the earliest and to build Ocean Rig into a competitive player in the ultra deepwater sector.
We are pleased with our decision to make a counter cyclical investment and seize the opportunity to purchase a high specification fleet of sister tankers from a top quality yard. The tanker market has again proved to be as unpredictable as ever due to the fallout of the Libyan conflict. The short term impact has been an increase in tonne-mile demand as longer-haul sources replace Libyan oil in Europe. We remain committed to placing the Companys tanker interests in a standalone entity at the right time.
As we move through 2011, we are seeing increasingly attractive opportunities to purchase drybulk carriers and renew and/or grow our fleet. Our strategy remains opportunistic in this sector.
Financial Review: 2010 Fourth quarter
The Company recorded net income of $99.7 million, or $0.31 basic and $0.29 diluted earnings per share, for the three-month period ended December 31, 2010, as compared to a net income of $9.6 million, or $0.02 basic and diluted earnings per share, for the three-month period ended December 31, 2009. Adjusted EBITDA, which is defined and reconciled to net income later in this press release, was $129.3 million for the fourth quarter of 2010 as compared to $76.7 million for the same period in 2009.
Included in the fourth quarter 2010 results are various items totaling $16.7 million, or $0.06 per share, which are described at the beginning of this press release. Excluding these items, our adjusted net income would have amounted to $83.0 million, or $0.25 per share.
Basic earnings per share for the fourth quarter of 2010 includes a reduction to net income amounting to $3.8 million relating to the cumulative payment-in-kind dividends on the Series A Convertible Preferred Stock, which reduces the income available to common shareholders.
For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) decreased by $5.3 million to $106.7 million for the three-month period ended December 31, 2010, as compared to $112.0 million for the three-month period ended December 31, 2009. For the offshore drilling segment, revenues from drilling contracts increased by $25.2 million to $102.3 million for the three-month period ended December 31, 2010 as compared to $77.1 million for the same period in 2009.
Total vessel and rig operating expenses increased by $6.5 million to $52.0 million for the three-month period ended December 31, 2010, as compared to $45.5 million for the three-month period ended December 31, 2009, while total depreciation and amortization decreased by $3.2 million to $46.9 million for the three-month period ended December 31, 2010 as compared to $50.1 million for the three-month period ended December 31, 2009. Total general and administrative expenses increased to $25.2 million in the fourth quarter of 2010 from $24.5 million during the comparative period in 2009.
Financing Developments
New $800 million Syndicated Secured Term Loan Facility
On March 25, 2011, the Company received signed commitments from all the lenders participating in a new $800 million syndicated secured term loan facility to partially finance the construction costs of the Ocean Rig Corcovado and Olympia. This facility has a 5 year term and 12 year repayment profile, and bears interest at LIBOR plus a margin.
This new facility is subject to completion of definitive documentation, which the Company expects to occur in the coming weeks. The Lead Arrangers are Nordea Bank and ABN AMRO. Also participating in this financing is Garanti-Instituttet for Eksportkreditt (GIEK), Norways export credit agency, DVB Bank, Deutsche Bank and National Bank of Greece.
The Company intends to use a portion of the new facility to prepay its $325 million Bridge Loan Facility with Deutsche Bank.
Restructuring of $1.1 billion Secured Term Loan Facility
On March 28, 2011, the Company received signed consents from all participating lenders to restructure the $1.1 billion secured term loan facilities led by Deutsche Bank.
The main terms of the restructuring are as follows:
·
The maximum amount permitted to be drawn is reduced from $562 million to $495 million under each facility.
·
In addition to the Dryships Guarantee, the Companys majority-owned subsidiary, Ocean Rig UDW Inc., will provide an unlimited recourse guarantee and will be subject to certain financial covenants that will apply quarterly.
·
Full draw downs (up to a total of $495 million) will be permitted for the Ocean Rig Poseidon based upon the fixture of the drillship under its drilling contract with Petrobras, and cash collateral deposited for this vessel will be released.
·
For the Ocean Rig Mykonos, the Company will have up to one month prior to delivery (scheduled for September 2011) to execute an acceptable drilling contract in order to draw down the loan.
This restructuring is subject to completion of definitive documentation, which the Company expects to occur in the coming weeks.
New $70 million Secured Term Loan Facility
On February 7, 2011, the Company executed definitive documentation for a $70 million secured term loan facility with an international lender to partially finance the construction costs of the newbuilding tankers, Saga and Villamoura. This facility has a 5 year term and a 15 year repayment profile, and bears interest at LIBOR plus a margin. As of March 30, 2011, the Company has drawn the full amount available under this facility.
New $32.3 million Secured Term Loan Facility
On March 30, 2011, the Company received a firm commitment from an international lender for a $32.3 million secured term loan facility to partially finance the construction cost of the newbuilding tanker, Daytona, which is scheduled to be delivered in May 2011. This facility has a 6 year term and a 15 year repayment profile, and bears interest at LIBOR plus a margin. This facility is subject to completion of definitive documentation, which the Company expects to occur in the coming weeks.
Selected Recent Developments
·
On November 23, 2010, the Company announced it has entered into an agreement with a major South Korean shipyard for the option to construct up to four ultra deepwater drillships. The new orders would be sisterships of the drillships under construction with further upgrades to the specifications. Each of the four options can be declared within twelve months of the agreement, with deliveries ranging from 2013 until 2014. The total project cost is estimated to be about $600 million per drillship excluding financing costs. The agreement includes a non-refundable slot reservation fee of $24.8million per drillship that will be applied to the drillship contract price if the options are exercised. The option agreement was novated to Ocean Rig UDW in December 2010 at a cost of $99.0 million.
·
In January 2011, the Company entered into firm contracts with Cairn Energy PLC for the Leiv Eiriksson and the Ocean Rig Corcovado, and with Petrobras Tanzania for the Ocean Rig Poseidon.
·
On December 21, 2010, Ocean Rig UDW closed its offering by way of a private placement of shares in the Norwegian market with total gross proceeds of $500 million, with DryShips retaining 78% of Ocean Rig UDW. As noted above, as part of this transaction Ocean Rig UDW acquired at cost the drillship options held by DryShips.
·
On December 23, 2010, the Company entered into direct agreements with a first class Korean shipyard to purchase twelve high specification newbuilding tankers at a total purchase price of $770 million, including over $3 million per vessel in extra items. The delivery installments for these contracts approximate 70% of each vessels price.
·
On January 3, 2011, the Company took delivery of its newbuilding drillship Ocean Rig Corcovado (Hull 1837).
·
On January 18, 2011, the Company took delivery of its newbuilding Aframax tanker, Saga.
·
On March 17, 2011, the Companys vessel, MV OLIVA, was reported to have run aground in a group of islands in the South Atlantic Ocean. Salvors report that there are no salvage prospects for the vessel or the cargo. We expect that all losses will be covered by insurance.
·
On March 23, 2011, the Company took delivery of its newbuilding Suezmax tanker, Vilamoura.
·
On March 30, 2011, the Company took delivery of its second newbuilding drillship Ocean Rig Olympia (Hull 1838).
·
In March 2011, A U.S. District Court in Maryland resolved a case in which Cardiff, the former manager of the Companys vessel, M/V Capitola, entered into a comprehensive settlement with the U.S. Department of Justice in connection with an investigation into MARPOL violations involving that vessel. The court applied a fine of approximately $2.5 million and instructed Cardiff to implement an Environmental Compliance Plan, or ECP, which the vessels current operator, TMS Bulkers, will carry out.
·
Three of the Companys drybulk carriers are chartered to Korea Lines Corporation (KLC). As of February 16, 2011, KLC entered into a rehabilitation proceeding under the protection of the Korean Courts. The Company reached an agreement with the receivers of KLC to restructure the charters at a base rate plus a profit share component. The agreement requires that a certain portion of outstanding hire be paid in full with the remaining amount to be filed as an unsecured claim, the satisfaction of which will be subject to the rehabilitation proceedings in the Korean Bankruptcy Courts.
Fleet List
The table below describes our drybulk and tanker fleet profile as of March 29, 2011
| Year |
|
| Gross rate | Redelivery |
|
| Built | DWT | Type | Per day | Earliest | Latest |
|
|
|
|
|
|
|
Dry fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capesize: |
|
|
|
|
|
|
Alameda | 2001 | 170,662 | Capesize | $27,500 | Nov-15 | Jan-16 |
Brisbane | 1995 | 151,066 | Capesize | $25,000 | Dec-11 | Apr-12 |
Capri | 2001 | 172,579 | Capesize | Spot | Apr-18 | Jun-18 |
Flecha | 2004 | 170,012 | Capesize | $55,000 | Jul-18 | Nov-18 |
Manasota | 2004 | 171,061 | Capesize | $67,000 | Feb-13 | Apr-13 |
Mystic | 2008 | 170,040 | Capesize | $52,310 | Aug-18 | Dec-18 |
Samsara | 1996 | 150,393 | Capesize | Spot |
|
|
|
|
|
|
|
|
|
Panamax: |
|
|
|
|
|
|
Amalfi ex. Gemini S | 2009 | 75,000 | Panamax | $39,750 | Aug- 13 | Dec- 13 |
Avoca | 2004 | 76,629 | Panamax | $45,500 | Sep-13 | Dec-13 |
Bargara | 2002 | 74,832 | Panamax | $43,750 | May-12 | Jul-12 |
Capitola | 2001 | 74,816 | Panamax | Spot | Jun-13 | Aug-13 |
Catalina | 2005 | 74,432 | Panamax | $40,000 | Jun-13 | Aug-13 |
Conquistador | 2000 | 75,607 | Panamax | $17,750 | Aug-11 | Nov-11 |
Coronado | 2000 | 75,706 | Panamax | $18,250 | Sep-11 | Nov-11 |
Ecola | 2001 | 73,925 | Panamax | $43,500 | Jun-12 | Aug-12 |
La Jolla | 1997 | 72,126 | Panamax | $14,750 | Aug-11 | Nov-11 |
Levanto | 2001 | 73,931 | Panamax | $16,800 | Sep-11 | Nov-11 |
Ligari | 2004 | 75,583 | Panamax | $55,500 | Jun-12 | Aug-12 |
Maganari | 2001 | 75,941 | Panamax | $14,500 | Jul-11 | Sep-11 |
Majorca | 2005 | 74,747 | Panamax | $43,750 | Jun-12 | Aug-12 |
Marbella | 2000 | 72,561 | Panamax | $14,750 | Aug-11 | Nov-11 |
Mendocino | 2002 | 76,623 | Panamax | $56,500 | Jun-12 | Sep-12 |
Ocean Crystal | 1999 | 73,688 | Panamax | $15,000 | Aug-11 | Nov-11 |
Oregon | 2002 | 74,204 | Panamax | $16,350 | Aug-11 | Oct-11 |
Padre | 2004 | 73,601 | Panamax | $46,500 | Sep-12 | Dec-12 |
Positano | 2000 | 73,288 | Panamax | $42,500 | Sep-13 | Dec-13 |
Primera | 1998 | 72,495 | Panamax | $18,250* | Sep-11 | Sep-11 |
Rapallo | 2009 | 75,123 | Panamax | $15,400 | Aug-11 | Oct-11 |
Redondo | 2000 | 74,716 | Panamax | $34,500 | Apr-13 | Jun-13 |
Saldanha | 2004 | 75,707 | Panamax | $52,500 | Jun-12 | Sep-12 |
Samatan | 2001 | 74,823 | Panamax | Spot | May-13 | Jul-13 |
Sonoma | 2001 | 74,786 | Panamax | $19,300 | Sept- 11 | Nov- 11 |
Sorrento | 2004 | 76,633 | Panamax | $17,300 | Sep-11 | Dec-11 |
Toro | 1995 | 73,035 | Panamax | $16,750 | May-11 | Jul-11 |
|
|
|
|
|
|
|
Supramax: |
|
|
|
|
|
|
Galveston ex. Pachino | 2002 | 51,201 | Supramax | Spot |
|
|
Paros I | 2003 | 51,201 | Supramax | $27,135 | Oct-11 | May-12 |
|
|
|
|
|
|
|
| Year |
|
|
|
|
|
| Built | DWT | Type |
|
|
|
Newbuildings |
|
|
|
|
|
|
|
|
|
|
|
| |
Panamax 1 | 2011 | 76,000 | Panamax |
|
|
|
Panamax 2 | 2012 | 76,000 | Panamax |
|
|
|
|
|
|
|
|
|
|
Tanker fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
Saga | 2011 | 115,200 | Aframax | Spot |
|
|
Vilamoura | 2011 | 158,300 | Suezmax | Spot |
|
|
|
|
|
|
|
|
|
Newbuildings |
|
|
|
|
|
|
Alicante | 2012 | 115,200 | Aframax |
|
|
|
Belmar | 2011 | 115,200 | Aframax |
|
|
|
Calida | 2011 | 115,200 | Aframax |
|
|
|
Daytona | 2011 | 115,200 | Aframax |
|
|
|
Mareta | 2012 | 115,200 | Aframax |
|
|
|
Blanca | 2013 | 158,300 | Suezmax |
|
|
|
Bordeira | 2013 | 158,300 | Suezmax |
|
|
|
Esperona | 2013 | 158,300 | Suezmax |
|
|
|
Lipari | 2012 | 158,300 | Suezmax |
|
|
|
Petalidi | 2012 | 158,300 | Suezmax |
|
|
|
* Based on a synthetic time charter
Drybulk Carrier Segment Summary Operating Data (unaudited)
(Dollars in thousands, except average daily results)
| Three Months Ended December 31, |
| Year Ended December 31, | |||||||
|
| 2009 |
| 2010 |
| 2009 |
| 2010 | ||
Average number of vessels(1) |
| 39.0 |
| 37.0 |
| 38.1 |
| 37.2 | ||
Total voyage days for vessels(2) |
| 3,535 |
| 3,341 |
| 13,660 |
| 13,372 | ||
Total calendar days for vessels(3) |
| 3,588 |
| 3,404 |
| 13,914 |
| 13,583 | ||
Fleet utilization(4) |
| 98.5% |
| 98.1% |
| 98.2% |
| 98.5% | ||
Time charter equivalent(5) |
| 31,683 |
| 31,929 |
| 30,425 |
| 32,184 | ||
Vessel operating expenses (daily)(6) |
| 5,553 |
| 5,577 |
| 5,434 |
| 5,245 |
(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 off hire days.
(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including off hire 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, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is 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.
| Three Months Ended December 31, |
| Year Ended December 31, | |||||
|
| 2009 |
| 2010 |
| 2009 |
| 2010 |
Voyage revenues |
| 119,332 |
| 113,521 |
| 444,385 |
| 457,804 |
Voyage expenses |
| (7,332) |
| (6,844) |
| (28,779) |
| (27,433) |
Time charter equivalent revenues |
| 112,000 |
| 106,677 |
| 415,606 |
| 430,371 |
Total voyage days for fleet |
| 3,535 |
| 3,341 |
| 13,660 |
| 13,372 |
Time charter equivalent TCE |
| 31,683 |
| 31,929 |
| 30,425 |
| 32,184 |
(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.
Dryships Inc.
Financial Statements
Unaudited Condensed Consolidated Statements of Operations
Dryships Inc.
Unaudited Condensed Consolidated Balance Sheets
Ocean Rig UDW Inc.
Financial Statements
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, |
| ||||
|
| 2009 |
| 2010 |
| 2009 |
| 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
Revenues from drilling contracts | $ | 75,560 |
| 102,301 |
| 388,122 |
| 405,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Drilling rigs operating expenses |
| 27,332 |
| 33,015 |
| 133,256 |
| 119,369 |
|
Depreciation and amortization |
| 19,296 |
| 17,831 |
| 75,348 |
| 75,092 |
|
Loss/ (gain) on sale of vessels |
| - |
| 707 |
| - |
| 1,458 |
|
General and administrative expenses |
| 4,408 |
| 5,211 |
| 17,955 |
| 19,443 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
| 24,524 |
| 45,537 |
| 161,563 |
| 190,350 |
|
|
|
|
|
|
|
|
|
| |
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest income |
| 2,146 |
| 3,122 |
| 6,259 |
| 12,464 |
|
Interest and finance costs |
| (3,590) |
| (2,415) |
| (46,120) |
| (8,418) |
|
Gain/(loss) on interest rate swaps |
| 3,129 |
| 12,478 |
| 4,826 |
| (40,303) |
|
Other, net |
| (567) |
| 247 |
| 2,023 |
| 1,104 |
|
Income taxes |
| (2,938) |
| (5,640) |
| (12,797) |
| (20,436) |
|
Total other income/(expenses), net |
| (1,820) |
| 7,792 |
| (45,809) |
| (55,589) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) | $ | 22,704 |
| 53,329 |
| 115,754 | $ | 134,761 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per common share, basic | $ | 0.22 |
| 0.50 |
| 1,12 | $ | 1,30 |
|
Weighted average number of shares, basic |
| 103,125,500 |
| 106,231,090 |
| 103,125,500 |
| 103,908,279 |
|
Earnings/(loss) per common share, diluted | $ | 0.22 |
| 0.50 |
| 1,12 | $ | 1,30 |
|
Weighted average number of shares, diluted |
| 103,125,500 |
| 106,231,090 |
| 103,125,500 |
| 103,908,279 |
|
|
|
|
|
|
|
|
|
|
|
Ocean Rig UDW Inc.
Unaudited Condensed Consolidated Balance Sheets
| |||||
|
|
|
|
| |
(Expressed in Thousands of U.S. Dollars) |
| December 31, 2009 |
| December 31, 2010 | |
|
|
|
| ||
ASSETS |
|
|
|
| |
CURRENT ASSETS: |
|
|
|
| |
| Cash and cash equivalents | $ | 234,195 | $ | 95,707 |
| Restricted cash |
| 220,690 |
| 464,638 |
| Trade accounts receivable, net |
| 65,486 |
| 24,286 |
| Other current assets |
| 38,187 |
| 39,220 |
| Total current assets |
| 558,558 |
| 623,851 |
|
|
|
|
|
|
FIXED ASSETS, NET: |
|
|
|
| |
| Advances for assets under construction and acquisitions |
| 1,178,392 |
| 1,888,490 |
| Drilling rigs, machinery and equipment, net |
| 1,317,607 |
| 1,249,333 |
| Total fixed assets, net |
| 2,495,999 |
| 3,137,823 |
|
|
|
|
|
|
OTHER NON CURRENT ASSETS: |
|
|
|
| |
Other non-current assets |
| 55,428 |
| 582,024 | |
Total non current assets |
| 55,428 |
| 582,024 | |
| Total assets |
| 3,109,985 |
| 4,343,698 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
| |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
| |
| Current portion of long-term debt |
| 537,668 |
| 560,561 |
| Other current liabilities |
| 144,619 |
| 107,357 |
| Total current liabilities |
| 682,287 |
| 667,918 |
|
|
|
|
|
|
NON CURRENT LIABILITIES |
|
|
|
| |
Long-term debt, net of current portion |
| 662,362 |
| 696,986 | |
Other non-current liabilities |
| 64,219 |
| 97,712 | |
Total non current liabilities |
| 726,581 |
| 794,698 | |
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
| - |
| - | |
|
|
|
| ||
STOCKHOLDERS EQUITY: |
|
|
|
| |
| Total stockholders equity |
| 1,701,117 |
| 2,881,082 |
| Total equity |
| 1,701,117 |
| 2,881,082 |
| Total liabilities and stockholders equity | $ | 3,109,985 | $ | 4,343,698 |
|
|
|
|
|
|
|
Adjusted EBITDA Reconciliation
Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization 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 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:
Dryships Inc.
(Expressed in Thousands of U.S. Dollars) |
| Three Months Ended December 31, 2009 |
| Three Months Ended December 31, 2010 |
| Year Ended December 31, 2009 |
| Year Ended December 31, 2010 |
|
| (As restated) |
|
|
| (As restated) |
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable to Dryships Inc. |
| 9,604 |
| 99,737 |
| (20,918) |
| 188,327 |
|
|
|
|
|
|
|
|
|
Add: Net interest expense |
| 16,222 |
| 3,900 |
| 75,725 |
| 45,959 |
Add: Depreciation and amortization |
| 50,127 |
| 46,883 |
| 196,309 |
| 190,911 |
Add: Income taxes |
| 2,938 |
| 5,640 |
| 12,797 |
| 20,436 |
Add: Loss/ (gain) on interest rate swaps |
| (2,171) |
| (26,884) |
| (23,160) |
| 120,505 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
| 76,720 |
| 129,276 |
| 240,753 |
| 566,138 |
Ocean Rig UDW Inc.
(Expressed in Thousands of U.S. Dollars) |
| Three Months Ended December 31, 2009 |
| Three Months Ended December 31, 2010 |
| Year Ended December 31, 2009 |
| Year Ended December 31, 2010 |
|
|
|
|
|
|
|
|
|
Net income/(loss) |
| 22,704 |
| 53,329 |
| 115,754 |
| 134,761 |
|
|
|
|
|
|
|
|
|
Add: Net interest expense |
| 1,444 |
| (707) |
| 39,861 |
| (4,046) |
Add: Depreciation and amortization |
| 16,427 |
| 17,831 |
| 75,348 |
| 75,092 |
Add: Income taxes |
| 2,938 |
| 5,640 |
| 12,797 |
| 20,436 |
Add: Loss/ (gain) on interest rate swaps |
| (3,129) |
| (12,478) |
| (4,826) |
| 40,303 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
| 40,384 |
| 63,615 |
| 238,934 |
| 266,546 |
Conference Call and Webcast: Thursday March 31, 2011
As announced, the Companys management team will host a conference call, on Thursday, March 31, 2011 at 8:00 AM Eastern Daylight 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 April 2, 2011. 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 550 000 and the access code required for the replay is: 2133051#.
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.
About DryShips Inc.
DryShips Inc., based in Greece, is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW, Inc., DryShips owns and operates 6 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 4 ultra deepwater drillships, 2 of which will be delivered to the company during 2011. As of the day of this release, DryShips owns a fleet of 38 drybulk carriers (including newbuildings), comprising 7 Capesize, 29 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.4 million tons, and 12 tankers (including newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.6 million tons.
DryShips Inc.s common stock is listed on the NASDAQ Global Select Market where it trades under the symbol "DRYS".
Visit the Companys website at www.dryships.com
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements. 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 charterhire and drilling dayrates and drybulk carrier, tanker vessel, drilling rig and drillship values, failure of a seller to deliver one or more drilling units or drybulk carrier or tanker vessels, failure of a buyer to accept delivery of a drilling unit or vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for drybulk commodities or oil or petroleum products, 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, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, 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 US Securities and Exchange Commission.
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: dryships@capitallink.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DryShips Inc. | |
| (Registrant) | |
|
| |
Dated: March 31, 2011 | By: /s/George Economou | |
|
| George Economou Chief Executive Officer |
1 Please see later in this release for a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated in accordance with United States generally accepted accounting principles, or U.S. GAAP.