The DryShips earnings report has landed. DryShips (DRYS) is a controversial name that we once famously quipped “you will never see your money again“.
We felt this way because it had announced yet another in a long line of reverse splits, and continued DryShips earnings reports that were subpar
We were one stop short of calling it scam, even if there are times DryShips earnings reports were positive.
We plainly said that you will never see your money again if you invested here and held.
While this is a very interesting company, the stock is complete trash in our opinion and we are shocked there hasn’t been some sort of criminal charges against the company.
We are no expert and maybe everything here has been done legally, but what we do know is that no one has made a dime in this stock, unless you have been short,or times a lucky trade.
If you are the latter, you were one of the lucky ones who bought a lotto ticket and made a quick buck on an up day. Maybe you got in this fall when rampant speculation drove this stock up 20 fold, only to come crashing down.
It bears repeating. If you have been holding, you will never see your money again. Sorry. For those desperately clinging to shares, here are the highlights you need to know.
For the fourth quarter of 2017, the Company reported a net income of $11.5 million, or $0.11 basic and diluted earnings per share.
Included in the fourth quarter of 2017 results are the following:
Net income associated with “mark-to-market” accounting of the Company’s 49.0% ownership in Heidmar Holdings LLC, a global tanker pool operator, of $9.7 million, or $0.09 per share.
Gain on the sale of the Company’s 2001 built Panamax vessel, the Ecola, to an unaffiliated buyer, of $4.4 million, or $0.04 per share.
Excluding the above, the Company’s net results would have amounted to a net loss of $2.6 million, or $0.02 per share.
The Company reported Adjusted EBITDA of $9.9 million for the fourth quarter of 2017.
Cash and cash equivalents: approximately $41.0 million (or $0.39 per share)
Book value of vessels: approximately $821.7 million (or $7.88 per share)
Debt outstanding balance: approximately $237.0 million (or $2.27 per share)
Number of Shares Outstanding: 104,274,708
Drawdown of previously announced New Secured Credit Facility
On January 26, 2018, the previously announced $90.0 million secured credit facility with a commercial lender was fully drawdown. The $90.0 million secured credit facility is secured by the Company’s four tanker vessels, has a tenor of five years, bears an interest rate of LIBOR plus margin, is repayable in quarterly installments and has customary financial covenants.
New Secured Credit Facility
On January 29, 2018, the Company signed the previously announced $35.0 million secured credit facility with a commercial lender. The $35.0 million secured credit facility is secured by three of the Company’s drybulk carriers, has a tenor of six years, bears an interest rate of LIBOR plus margin, is repayable in quarterly installments and has customary financial covenants. The Company’s expects to drawdown the full amount of the facility during March 2018.
Repayment of the Credit Facility with Sierra Investments Inc.
On February 1, 2018, the Company repaid in full the outstanding balance of approximately $73.8 million under the credit facility with Sierra Investments Inc., an entity that may be deemed to be affiliated with Mr. George Economou, the Company’s Chairman and Chief Executive Officer.
Firm Commitment for a New Secured Credit Facility
On February 5, 2018, the Company received a firm commitment for a senior secured credit facility of up to $30.0 million from a major European commercial lender. The facility is expected to be secured by two of the Company’s drybulk vessels, have a tenor of six years, bear an interest rate of LIBOR plus margin, be repayable in quarterly installments and have customary financial covenants. The facility remains subject to definitive documentation.
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