DRYSHIPS INC

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 February 2012


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.



1



INFORMATION CONTAINED IN THIS FORM 6-K REPORT


Attached as Exhibit 1 is a press release of DryShips Inc. (the “Company”) dated February 22, 2012: DryShips Inc. Reports Financial and Operating Results for the Fourth Quarter and Year Ended December 31, 2011.



2




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:  February 22, 2012

By:  /s/George Economou    

  

  

George Economou

Chief Executive Officer





3



Exhibit 1

[f022212drys6k001.jpg]


DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING

RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2011

February 22, 2012, 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., or Ocean Rig, of off-shore deepwater drilling services, today announced its unaudited financial and operating results for the fourth quarter and year ended  December 31, 2011.

Fourth Quarter 2011 Financial Highlights

Ø

For the fourth quarter of 2011, the Company reported a net loss of $6.2 million, or $0.02 basic and diluted loss per share. Included in the fourth quarter 2011 results are impairment losses on the vessels Avoca, Padre and Positano totaling $32.6 million, or $0.09 per share. Excluding these items, the Company’s net results would have amounted to net income of $26.4 million, or $0.07 per share.

Ø

The Company reported Adjusted EBITDA of $164.4 million for the fourth quarter of 2011 as compared to $134.8 million for the fourth quarter of 2010. (1)

Year Ended December 31, 2011 Financial Highlights

Ø

For the year ended 2011, the Company reported a net loss of $70.1 million, or $0.21 basic and diluted loss per share.

Ø

The Company reported Adjusted EBITDA of $580.0 million for the year ended 2011 as compared to $571.7 million for the year ended 2010.


Recent Events


·

On February 20, 2012, the Company signed an $87.7 million firm offer letter from HSH Nordbank to partially finance the construction costs of three drybulk vessels. The agreement is subject to documentation.

·

On February 14, 2012, the Company entered into a $122.6 million credit facility with China Development Bank to partially finance the construction costs related to three Very Large Ore Carriers, or VLOCs.  


·

On February 10, 2012, the Company concluded two Memoranda of Agreement for the sale of the vessels Avoca and Padre for a sales price of $80.5 million in the aggregate. The Avoca was delivered on February 22, 2012 while the Padre is expected to be delivered during February 2012.

·

In February 2012, we extended the existing drilling contract for the 6th generation drillship Ocean Rig Olympia by 47 days. The additional backlog is estimated at just over $28 million.

(1)

As Adjusted EBITDA is a non-GAAP measure, please see later in this press release for a reconciliation to net income.



·

In February 2012, the Company entered into nine interest rate swap agreements for a total notional amount of $988.8 million maturing from October 2015 through May 2017. These agreements were entered into to hedge the Company’s exposure to interest rate fluctuations by fixing our 3 month LIBOR rates between approximately 0.90% and 1.20%.  

·

On February 9, 2012, Petróleo Brasileiro S.A. announced it has awarded 15 year term charters to a Consortium in which Ocean Rig is a participant for five ultra deep water units at an average day rate of $548,000.

·

On February 6, 2012 Ocean Rig announced that it has signed a new drilling contract for its semi-submersible drilling rig Leiv Eiriksson with a consortium coordinated by Rig Management Norway for drilling on the Norwegian Continental Shelf. The maximum total revenue backlog is estimated at $653 million for a minimum period of 1,070 days. The new contract is a well-based contract for 15 wells and will commence in the fourth quarter of 2012 or the first quarter of 2013. The contract includes three options of 6 wells with an exercise date well in advance of the expiry of the firm period.

·

On January 27, 2012, Ocean Rig extended the exercise date of its option agreements to construct three additional 7th generation drillships at Samsung, to April 2, 2012.

·

On January 23, 2012, Ocean Rig announced that it entered into a new drilling contract for its semi-submersible drilling rig Eirik Raude with an independent operator, for work offshore West Africa. The maximum total revenue backlog, to complete the 3 well program is estimated at $52 million for a period of 60 days. The new contract will commence in direct continuation after the completion of the existing Eirik Raude contract. The operator has an option to drill one additional well for an estimated duration of 20 days.

·

On January 3, 2012 and on February 6, 2012, the vessels Calida and Woolloomooloo (ex. Hull 1637a) were delivered to the Company.

·

On December 16, 2011 the Company signed newbuilding contracts for the construction of four 75,900 dwt Panamax Ice Class 1A bulk carriers with an established Chinese shipyard for a price of $34 million each, expected to be delivered in 2014. These are high specification dry cargo vessels with attractive features such as winterization and electronic main engines resulting in significant fuel efficiencies and the ability to navigate the Northern Sea Route.  

George Economou, Chairman and Chief Executive Officer of the Company commented:


“We are pleased to report DryShips’ earnings for the fourth quarter of 2011. This last quarter of 2011 was a significant period for our offshore drilling unit because it generated profits in spite of downtime associated with mobilizing our rigs to drilling locations. More importantly, it marked the beginning of our next growth stage as we continue to build on our revenue backlog.


“On the shipping side, we continue to execute our defensive strategy by renewing our fleet as evidenced by our recent decision to built four high-spec ice class bulkers as replacements for the sale of older vessels such as the Avoca and the Padre. We believe we are well positioned to weather the current market downturn with 56% of our 2012 operating days in the drybulk segment under fixed rate charters at an average rate of about $34,720 per day.


“We are confident in our ability to source competitively-priced loans as recently evidenced by our signed term sheet with HSH Nordbank for the financing of three bulkers and well as the execution of a loan agreement with China Development Bank for three VLOCs. Furthermore, we executed amortizing interest rate swap agreements fixing interest rates on a substantial amount of our debt at historical low rates.


“The Company’s 73.9% stake in Ocean Rig represents its most valuable asset and Management is committed to keep executing its business plan for our ultra deepwater off-shore drilling segment to enhance value for the Dryships’ shareholders.”   


 Financial Review: 2011 Fourth Quarter

The Company recorded net loss of $6.2 million, or $0.02 basic and diluted loss per share, for the three-month period ended December 31, 2011, as compared to net income of $97.9 million, or $0.30 basic and $0.29 diluted earnings per share, for the three-month period ended December 31, 2010. Adjusted EBITDA was $164.4 million for the fourth quarter of 2011 as compared to $134.8 million for the same period in 2010.

Included in the fourth quarter 2011 results are impairment losses from the sale of vessels Avoca, Padre and Positano totaling $32.6 million, or $0.09 per share. Excluding these items, the Company’s net results would have amounted to net income of $26.4 million or $0.07 per share.  

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $81.7 million for the three-month period ended December 31, 2011, as compared to $106.7 million for the three-month period ended December 31, 2010. For the offshore drilling segment, revenues from drilling contracts increased by $135.4 million to $237.7 million for the three-month period ended December 31, 2011 as compared to $102.3 million for the same period in 2010. For the tanker segment, net voyage revenues amounted to $3.6 million for the three-month period ended December 31, 2011.

Total vessel and rig operating expenses and total depreciation and amortization increased to $119.6 million and $82.3 million, respectively, for the three-month period ended December 31, 2011 from $52.0 million and $48.9 million, respectively, for the three-month period ended December 31, 2010. Total general and administrative expenses increased to $37.4 million in the fourth quarter of 2011 from $25.2 million during the comparative period in 2010.

Interest and finance costs, net of interest income, amounted to $48.2 million for the three-month period ended December 31, 2011, compared to $5.7 million for the three-month period ended December 31, 2010.












Fleet List

The table below describes our fleet profile as of February 17, 2012:

 

 

Year

 

 

Gross rate

Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

 

 

 

 

 

 

 

Drybulk fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Capesize:

 

 

 

 

 

 

Mystic

2008

170,040

Capesize

$52,310

Aug-18

Dec-18

Robusto

2006

173,949

Capesize

$26,000

Aug-14

Dec-14

Cohiba

2006

174,234

Capesize

$26,250

Oct-14

Feb-15

Montecristo

2005

180,263

Capesize

$23,500

May-14

Oct-14

Flecha

2004

170,012

Capesize

$55,000

Jul-18

Nov-18

Manasota

2004

171,061

Capesize

$30,000

Jan-18

Aug-18

Partagas

2004

173,880

Capesize

$27,500

Jul-12

Dec-12

Alameda

2001

170,662

Capesize

$27,500

Nov-15

Jan-16

Capri  

2001

172,579

Capesize

Spot

N/A

N/A

 

 

 

 

 

 

 

Panamax:

 

 

 

 

 

 

Woolloomooloo

2012

76,064

Panamax

$13,150

Dec-12

Feb-13

Amalfi

2009

75,206

Panamax

$39,750

Aug- 13

Dec- 13

Rapallo

2009

75,123

Panamax

Spot

N/A

N/A

Catalina

2005

74,432

Panamax

$40,000

Jun-13

Aug-13

Majorca

2005

74,477

Panamax

$43,750

Jun-12

Aug-12

Ligari

2004

75,583

Panamax

$55,500

Jun-12

Aug-12

Avoca (1)

2004

76,629

Panamax

$45,500

Sep-13

Dec-13

Padre  (2)

2004

73,601

Panamax

$46,500

Sep-12

Dec-12

Saldanha

2004

75,707

Panamax

$52,500

Jun-12

Sep-12

Sorrento

2004

76,633

Panamax

$24,500

Aug-21

Dec-21

Mendocino

2002

76,623

Panamax

$56,500

Jun-12

Sep-12

Bargara

2002

74,832

Panamax

$43,750

May-12

Jul-12

Oregon

2002

74,204

Panamax

Spot

N/A

N/A

Ecola

2001

73,931

Panamax

$43,500

Jun-12

Aug-12

Samatan

2001

74,823

Panamax

Spot

N/A

N/A

Sonoma

2001

74,786

Panamax

Spot

N/A

N/A

Capitola  

2001

74,816

Panamax

Spot

N/A

N/A

Levanto

2001

73,925

Panamax

Spot

N/A

N/A

Maganari

2001

75,941

Panamax

Spot

N/A

N/A

Coronado

2000

75,706

Panamax

Spot

N/A

N/A

Marbella

2000

72,561

Panamax

Spot

N/A

N/A

Positano

2000

73,288

Panamax

$42,500

Sep-13

Dec-13

Redondo

2000

74,716

Panamax

$34,500

Apr-13

Jun-13

Topeka

2000

74,716

Panamax

$12,250

Dec-12

Feb-13

Ocean Crystal

1999

73,688

Panamax

Spot

N/A

N/A

Helena

1999

73,744

Panamax

$32,000

May-12

Jan-13

 

 

 

 

 

 

 

Supramax:

 

 

 

 

 

 

Byron

2003

51,118

Supramax

Spot

N/A

N/A

Galveston

2002

51,201

Supramax

Spot

N/A

N/A

 



Year

 

 



Gross rate



Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newbuildings

 

 

 

 

 

 

Newbuilding Ice –class Panamax 1

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 2

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 3

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 4

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding VLOC #4

2013

206,000

Capesize

Spot

N/A

N/A

Newbuilding VLOC #5

2013

206,000

Capesize

Spot

N/A

N/A

Newbuilding Panamax 2

2012

76,000

Panamax

$13,150

Feb-13

Apr-13

Newbuilding Capesize 1

2012

176,000

Capesize

Spot

N/A

N/A

Newbuilding Capesize 2

2012

176,000

Capesize

Spot

N/A

N/A

Newbuilding VLOC #1

2012

206,000

Capesize

$25,000

June-15

June-20

Newbuilding VLOC #2

2012

206,000

Capesize

$23,000

Oct- 17

Oct-22

Newbuilding VLOC #3

2012

206,000

Capesize

$21,500

Jan- 20

Jan-27

 

 

 

 

 

 

 

Tanker fleet

 

 

 

 

 

 

Calida

2012

115,200

Aframax

Sigma Pool

N/A

N/A

Vilamoura

2011

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Saga

2011

115,200

Aframax

Sigma Pool

N/A

N/A

Daytona

2011

115,200

Aframax

Sigma Pool

N/A

N/A

Belmar

2011

115,200

Aframax

Sigma Pool

N/A

N/A

 

 

 

 

 

 

 

Newbuildings

 

 

 

 

 

 

Blanca

2013

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Bordeira

2013

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Esperona

2013

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Lipari

2012

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Petalidi

2012

158,300

Suezmax

Blue Fin Pool

N/A

N/A

Alicante

2012

115,200

Aframax

Sigma Pool

N/A

N/A

Mareta

2012

115,200

Aframax

Sigma Pool

N/A

N/A



(1) Sold delivered to new owner on February 22, 2012

(2) Sold, expect to be delivered to new owners during February 2012.


















Drilling Rigs:

 

Unit

Year built

Redelivery

Operating area

Backlog ($m) (*)

Leiv Eiriksson

2001

Q3 – 12

Falkland Islands

$ 126

Leiv Eiriksson

2001

Q4 – 15

North Sea

$ 653

Eirik Raude

2002

Q1 – 12

Ghana

$ 5

Eirik Raude

2002

Q2 – 12

Ivory Coast

$ 56

Eirik Raude

2002

Q3 – 12

West Africa

$ 52

Ocean Rig Corcovado

2011

Q1 – 15

Brazil

$ 534

Ocean Rig Olympia

2011

Q2 – 12

West Africa

$ 62

Ocean Rig Poseidon

2011

Q2 – 13

Tanzania

$ 291

Ocean Rig Mykonos

2011

Q1 – 15

Brazil

$ 528

Total

 

 

 

$2,307

(*) Backlog as of December 31, 2011 as adjusted for firm contracts thereafter
















Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited)

 (Dollars in thousands, except average daily results)


Drybulk

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2010

 

2011

 

2010

 

2011

Average number of vessels(1)

37.0

 

36.1

 

37.2

 

35.8

Total voyage days for vessels(2)

3,341

 

3,204

 

13,372

 

12,682

Total calendar days for vessels(3)

3,404

 

3,325

 

13,583

 

13,068

Fleet utilization(4)

98.1%

 

96.4%

 

98.5%

 

97.0%

Time charter equivalent(5)

$31,929

 

$25,479

 

$32,184

 

$27,229

Vessel operating expenses (daily)(6)

$5,577

 

$7,007

 

$5,245

 

$6,271


Tanker

Three Months Ended December 31,

2011

 

Year Ended

December 31,

2011

Average number of vessels(1)

3.9

 

2.6

Total voyage days for vessels(2)

361

 

963

Total calendar days for vessels(3)

362

 

963

Fleet utilization(4)

99.7%

 

100%

Time charter equivalent(5)

$10,105

 

$12,592

Vessel operating expenses (daily)(6)

$8,895

 

$9,701


(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.

(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.


Drybulk

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2010

 

2011

 

2010

 

2011

Voyage revenues

$        113,521

$

86,621

$

457,804

$

365,361

Voyage expenses

(6,844)

 

(4,985)

 

(27,433)

 

(20,048)

 

Time charter equivalent revenues

$        106,677

$

81,636

$

430,371

$

345,313

 

Total voyage days for fleet   

3,341

 

3,204

 

13,372

 

12,682

 

Time charter equivalent TCE

$          31,929

$

25,479

$

32,184

$

27,229



Tanker

Three Months Ended December 31, 2011

 

Year Ended

December 31, 2011

Voyage revenues

$ 3,903

 

$12,652

Voyage expenses

(255)

 

(526)

Time charter equivalent revenues

$ 3,648

 

$12,126

Total voyage days for fleet  

361

 

963

Time charter equivalent TCE

$10,105

 

$12,592




Dryships 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,

 

 

 

2010

 

2011

 

2010

 

2011

 

 

 

(as restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

Voyage revenues

$

113,521

$

90,524

$

457,804

$

378,013

 

Revenues from drilling contracts

 

102,301

 

237,658

 

401,941

 

699,649

 

 

 

215,822

 

328,182

 

859,745

 

1,077,662

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Voyage expenses

 

6,844

 

5,240

 

27,433

 

20,573

 

Vessel and drilling rig operating expenses

 

51,999

 

119,573

 

190,614

 

373,122

 

Depreciation and amortization

 

48,863

 

82,280

 

192,891

 

274,281

 

Loss/(gain) on vessel sales/impairment

 

4,296

 

27,142

 

(5,847)

 

116,779

 

General and administrative expenses

 

25,203

 

37,387

 

87,264

 

114,282

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

78,617

 

56,560

 

367,390

 

178,625

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSES):

 

 

 

 

 

 

 

 

 

Interest and finance costs, net of interest income

 

(5,706)

 

(48,181)

 

(45,959)

 

(134,828)

 

Gain/(Loss) on interest rate swaps

 

26,884

 

2,298

 

(120,505)

 

(68,943)

 

Other, net

 

5,899

 

2,168

 

9,960

 

5,288

 

Income taxes

 

(5,640)

 

(9,872)

 

(20,436)

 

(27,428)

 

Total other expenses

 

21,437

 

(53,587)

 

(176,940)

 

(225,911)

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

100,054

 

2,973

 

190,450

 

(47,286)

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Non controlling interests

 

(2,123)

 

(9,193)

 

(2,123)

 

(22,842)

 

 

 

 

 

 

 

 

 

 

 

Net  income/(loss) attributable

to Dryships Inc.


$


97,931


$

(6,220)


$


188,327


$

(70,128)

 

 

 

 

 

 

 

 

 

 

 

Earnings/(loss) per common share, basic

$

0.30

$

(0.02)

$

0.64

$

(0.21)

 

Weighted average number of shares, basic

 

307,926,254

 

375,495,260

 

268,858,688

 

355,144,764

 

Earnings/(loss) per common share, diluted

$

0.29

$

(0.02)

$

0.61

$

(0.21)

 

Weighted average number of shares, diluted

 

344,493,418

 

375,495,260

 

305,425,852

 

355,144,764

 

 

 

 

 

 

 

 

 

 

 












Dryships Inc.


Unaudited Condensed Consolidated Balance Sheets


 (Expressed in Thousands of U.S. Dollars)

 

December 31, 2010

   




December 31, 2011

 

 

 

 

 

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

391,530

$

251,143

 

Restricted cash

 

578,311

 

72,765

 

Other current assets  

 

95,269

 

270,345

 

Total current assets

 

1,065,110

 

594,253

 

 

 

 

 

 

FIXED ASSETS, NET:

 

 

 

 

 

Vessels and rigs under construction and acquisitions

 

2,072,699

 

1,027,889

 

Vessels, net

 

1,917,966

 

1,956,270

 

Drilling rigs, machinery and equipment, net

 

1,249,333

 

4,587,916

 

Total fixed assets, net

 

5,239,998

 

7,572,075

 

 

 

 

 

 

OTHER NON-CURRENT ASSETS:

 

 

 

 

 Restricted cash

 

195,517

 

332,801

 Other non-current assets

 

483,869

 

122,560

Total non-current assets

 

679,386

 

455,361

 

Total assets

 

6,984,494

 

8,621,689

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current portion of long-term debt

 

731,232

 

429,149

 

Other current liabilities

 

204,203

 

336,286

 

Total current liabilities

 

935,435

 

765,435

 

 

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

Long-term debt, net of current portion

 

1,988,460

 

3,812,686

Other non-current liabilities

 

161,070

 

104,906

Total non-current liabilities

 

2,149,530

 

3,917,592

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Total equity

 

3,899,529

 

3,938,662

 

Total liabilities and stockholders’ equity

$

6,984,494

$

8,621,689

 

 

 

 

 

 

 











Adjusted EBITDA Reconciliation

Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, vessel impairments 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 United States generally accepted accounting principles, or 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:

(Dollars in thousands)

 




Three Months Ended

December 31,

 



 

Year Ended

December 31,

 

 

2010

(as restated)

 

2011

 

2010

 

2011

Net income / (loss)

$

97,931

 

(6,220)

 

188,327

$

(70,128)

 

 

 

 

 

 

 

 

 

Add: Net interest expense

 

5,706

 

48,181

 

45,959

 

134,828

Add: Depreciation and amortization

 

48,863

 

82,280

 

192,891

 

274,281

Add: Impairment losses

 

3,588

 

32,584

 

3,588

 

144,688

Add: Income taxes

 

5,640

 

9,872

 

20,436

 

27,428

Add: (Gain)/Loss on interest rate swaps

 

(26,884)

 

(2,298)

 

120,505

 

68,943

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

134,844

 

164,399

 

571,706

$

580,040





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Conference Call and Webcast: February 23, 2012

As announced, the Company’s management team will host a conference call, on February 23, 2012 at 9:00 a.m. Eastern Standard 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) 1452 542 301 (from outside the US). Please quote "DryShips."

A replay of the conference call will be available until March 1, 2012. 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 55 00 00 and the access code required for the replay is: 2133051#.

A replay of the conference call will also be available on the Company’s website at www.dryships.com under the Investor Relations section.

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. is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 9 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013.  DryShips owns a fleet of 49 drybulk carriers (including newbuildings), comprising 11 Capesize, 31 Panamax, 2 Supramax and 5 newbuildings Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of about 5.4 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’ common stock is listed on the NASDAQ Global Select Market where it trades under the symbol “DRYS.”

Visit the Company’s website at www.dryships.com



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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 rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, 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





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