LONDON, UK / ACCESSWIRE / September 19, 2016 / Active Wall Street announces its post-earnings coverage on Star Bulk Carriers Corp. Earnings (NASDAQ: SBLK) ("Star Bulk"). The company posted its financial results for the second quarter fiscal 2016 (Q2 FY16) on September 14th, 2016. The Athens, Greece-based company's net loss narrowed down in the reported quarter; beating market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
Today, AWS is promoting its earnings coverage on SBLK; touching on stocks like Scorpio Bulkers Inc. (NYSE: SALT), and Diana Shipping Inc. (NYSE: DSX). Get our free coverage by signing up to:
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Earnings Reviewed
For the three months ended on June 30, 2015, Star Bulk's total voyage revenues decreased to $52.61 million from $55.75 million reported in the prior year's corresponding quarter. However, Star Bulk's total voyage revenues outperformed analysts' forecasts of $39.5 million. The company informed Wall Street that the decline in revenues was primarily driven by a fall in prevailing charter hire rates in the dry bulk market.
Star Bulk reported net loss of $32.91 million, or $0.75 loss per diluted share, for Q2 FY16, compared to net loss of $65.02 million, or $1.72 loss per diluted share, in Q2 FY15. Adjusted net loss for Q2 FY16 stood at $30.20 million, or $0.69 loss per diluted share, compared to adjusted net loss of $22.32 million, or $0.59 loss per diluted share in Q2 FY15. The company's adjusted net loss beat market expectation of $0.75 loss per diluted share.
Operational Metrics
In the reported quarter, the global shipping company owned and operated 71.0 vessel compared to 69.7 vessels in Q2 FY15. The company earned Time Charter Equivalent (TCE) of $6,463 per day during Q2 FY16 versus TCE of $8,616 per day in the year-ago period.
The company's voyage expenses in Q2 FY16 increased to $17.72 million from $12.89 million in Q2 FY15, primarily due to due to the increased level of spot market activity. For the reported quarter, adjusted EBITDA came in at $1.63 million versus $6.26 million, in Q2 FY15.
Star Bulk recorded operating loss of $20.88 million in the reported quarter compared to operating loss of $56.77 million in Q2 FY15. The company's operating loss for Q2 FY16 included non-cash impairment loss and net loss on sale of vessels of $0.3 million and $0.2 million, respectively. Operating loss for Q2 FY15 constituted $27.7 million of non-cash impairment loss and $11.3 million of loss incurred on sale of vessels.
Liquidity and Cash Balance
The company used $36.0 million of cash in operations in Q2 FY15 compared to cash used in operations of $9.5 million in Q2 FY15. Star Bulk attributed the increased cash used for operations to working capital outflow of $9.6 million, higher interest expense and lower adjusted EBITDA. Star Bulk reported a cash balance of $140.56 million as on June 30, 2016, compared to cash balance of $208.06 million as at December 31, 2015.
Dividend and Share Buybacks
In a separate press release on September 14, 2016, the company announced an underwritten public offering for $51.5 million gross proceeds of its common stock. Additionally, on September 15, 2016, the company priced its underwritten public offering for 11,976,745 of its common shares at $4.30 per share.
Peer-Performance
Scorpio Bulkers Inc., in its earnings release on July 27, 2016, had reported vessel revenue of $17.37 million for Q2 FY16 compared to $12.78 million in Q2 FY15. The company's GAAP net loss for Q2 FY16 came in at $24.75 million, or $0.48 loss per diluted share, lower than GAAP net loss of $138.65 million, or $8.50 loss per diluted share, recorded in the year-ago quarter.
On July 28, 2016, Diana Shipping Inc. (NYSE: DSX) recorded time charter revenues of $28.33 million for Q2 FY16 compared to $38.57 million in Q2 FY15. The company reported net loss of $32.73 million, or $0.41 loss per share, in its reported quarter compared to net loss of $15.50 million, or $0.19 loss per share, during Q2 FY15.
Stock Performance
Star Bulk's stock closed the trading session at $4.45, climbing 1.37% from its previous closing price of $4.39, on Friday, September 16, 2016. A total volume of 503.69 thousand shares have exchanged hands, which was higher than the 3-month average volume of 111.09 thousand shares. Star Bulk Carriers' stock price advanced 7.49% in the last month, 28.99% in the past three months, and 23.61% in the previous six months. Furthermore, on a year to date basis, the stock jumped 45.90%.
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