Dividend Record: No change. Safe Bulkers (SB) will pay its usual $0.15 per share quarterly cash dividend payable on or about May 27th, 2011 to shareholders of record at the close of trading of the Company’s common stock on the New York Stock Exchange on May 20th, 2011. SB’s payout ratio remains low at 36.5% ($0.15 dividend/$0.41 EPS). The dividend remains safe like I’ve been saying since I started writing about Safe Bulkers. SB is yielding 7.4% right now ($0.60 annual dividend/$8.10 market price).
Earning power: Revenues were up for the third straight quarter. Net income was down by 15%, but most of that was the absence of the proceeds from a ship sale back in January 2010. Time charter equivalency rates were almost unchanged from a year ago, so earnings are stable. I expect Safe Bulkers income to be almost identical to 2010 at about $1.60 per share @ 70.883 million shares. The stock is currently trading at five times my estimated 2011 earnings. I have recalculated its average earning power over the past five years + my estimate for this year. If the above proves true, then SB has an average earning power of $1.90 per share.
Market price: $8.10
Shares: 70.883 M (5 M shares issued recently)
(earnings adjusted for changes in capitalization)
EPS Net inc. Adj. EPS
2006 $1.78 $97.224 M $1.37
2007 $3.84 $209.20 M $2.95
2008 $2.19 $119.21 M $1.68
2009 $3.03 $165.41 M $2.33
2010 $1.73 $109.65 M $1.55
2011(E) $0.41x4 $27.3 M x4 $1.54(E)
$1.64(E) $109.20 M (E)
Six year average earnings $1.90 per share. 12 times avg. earnings equals $22.80. 20 times avg. earnings equals $38.00. This stock is a value because it is trading at 4.26 times its potential six year average earnings.
Balance sheet: Mixed improvements. Debts decreased slightly, but current ratio and quick ratio worsened.
Book value per share: $3.69
Price to book value: 2.19
Current ratio: 1.00 (this has declined from 1.97 last quarter; above 2.0 is good. I’m watching this closely)
Quick ratio: 0.90 (this also declined from 1.92 last quarter; above 1.0 is good. I’m watching this closely)
DISCLOSURE: I don’t own Safe Bulkers yet, but I’m working on some changes to my retirement accounts so I can buy some before investors figure out the value of this high dividend stock.
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SOURCE: Safe Bulkers, Inc.
May 03, 2011 16:05 ET
Safe Bulkers, Inc. Reports First Quarter 2011 Results and Declares Quarterly Dividend
ATHENS, GREECE--(Marketwire - May 3, 2011) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the first quarter ended March 31, 2011. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the first quarter of 2011.
Summary of First Quarter 2011 Results
-- Net revenue for the first quarter of 2011 increased by 23% to $42.3
million from $34.3 million during the same period in 2010.
-- Net income for the first quarter of 2011 decreased by 15% to $27.3
million from $32.1 million, which includes $15.2 million gain on sale
of a vessel, during the same period in 2010.
-- EBITDA(1) for the first quarter of 2011 decreased by 7% to $34.4
million from $37.1 million during the same period in 2010.
-- Earnings per share for the first quarter of 2011 of $0.41, calculated
on a weighted average number of shares of 65,881,600, compared to $0.58
in the first quarter 2010, calculated on a weighted average number of
shares of 55,435,436.
-- The Company's Board of Directors declared a dividend of $0.15 per share
for the first quarter of 2011.
Link to the full press release: http://mwne.ws/SB1Q2011Results
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