Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today
reported unaudited financial results for the second quarter and six
months ended June 30, 2012.
Financial Highlights
- Voyage revenues of $96.0 million and $196.1
million for the three and the six months ended June 30, 2012,
respectively.
- Voyage revenues adjusted on a cash basis of
$96.5 million and $197.1 million for the three and the six months
ended June 30, 2012, respectively.
- Adjusted EBITDA of $61.0 million and $128.1
million for the three and the six months ended June 30, 2012,
respectively.
- Net income of $21.1 million or $0.31 per share
and $45.7 million or $0.71 per share for the three and the six
months ended June 30, 2012, respectively.
- Adjusted Net Income of $21.6 million or $0.32
per share and $46.8 million or $0.73 per share for the three and
six months ended June 30, 2012, respectively.
New Business Developments
- Took delivery of the 1998-built 3,842 TEU
vessels Koroni and Kyparissia which commenced the charter with
Evergreen replacing the vessels Genius I and Gifted. The total
acquisition cost for the two vessels was approximately $24.9
million and was partly funded with debt drawn from a credit
facility.
- Delivered to buyers the 1984-built, 2,922 TEU
container vessels Gifted and Genius I which were sold for
demolition. The total sale price for the vessels was approximately
$12.3 million.
- Entered into an agreement to time charter the
1991-built, 1,068 TEU containership Horizon to APL, for a period of
minimum three months and maximum six months at a daily rate of
$6,000. The vessel was delivered to APL at the end of May
2012.
- The Company has agreed to purchase from an
insolvency administrator over the assets of a German KG, the 1,078
TEU capacity, 2001-built container vessel Stadt Luebeck. The
purchase price will be $11.3 million and the vessel is expected to
be delivered to the Company by the end of July 2012. The vessel is
currently chartered to CMA CGM for a period until the end of August
2012, at a daily rate of $5,800. The acquisition will be funded
entirely out of bank financing provided by an existing lender to
the Company under an amended credit facility as part of a broader
agreement between the Company and the vessel's current lending
bank.
Dividend Announcements
- On July 9, 2012, the Company declared a
dividend for the second quarter ended June 30, 2012, of $0.27 per
share, payable on August 7, 2012 to stockholders of record at the
close of trading of the Company's common stock on the New York
Stock Exchange on July 23, 2012. This was the Company's seventh
consecutive quarterly dividend since it commenced trading on the
New York Stock Exchange.
Mr. Gregory Zikos, Chief Financial Officer of
Costamare Inc., commented:
"During the second quarter of the year, the Company continued to
deliver positive results.
In May we accepted delivery of two 1998-built, second hand
vessels, which replaced two 1984-built vessels in their respective
charter arrangements; for an incremental cost of approximately six
million per vessel we extended the useful life of those assets by
14 years.
Last week we agreed to buy from an insolvency administrator a
2001-built 1,078 TEUs container vessel. The acquisition will be
funded 100% with bank debt and forms part of a broader agreement
between the Company and the vessel's current lending bank.
At the same time, we have reduced our re-chartering risk for the
coming years. The charters for the vessels coming out of employment
during the remaining of 2012 and 2013 account for 2% and 4% of our
2012 and 2013 contracted revenues respectively.
Finally, on July 9 we declared a dividend for the second quarter
of $ 0.27 per share. Consistent with our dividend policy, we
continue to offer an attractive dividend, which we consider to be
sustainable based on the size of our contracted cash flows, the
quality of our charterers and the prudent amortization of our
debt.
We believe that going forward the Company is well positioned to
pursue new business opportunities in a volatile market
environment."
Financial Summary
Six-month period ended Three-month period
June 30, ended June 30,
----------------------- -----------------------
(Expressed in thousands of
U.S. dollars, except share
and per share data): 2011 2012 2011 2012
----------- ----------- ----------- -----------
Voyage revenue $ 180,279 $ 196,076 $ 94,318 $ 96,045
Accrued charter revenue (1) $ 15,442 $ 985 $ 7,454 $ 480
Voyage revenue adjusted on a
cash basis (2) $ 195,721 $ 197,061 $ 101,772 $ 96,525
Adjusted EBITDA (3) $ 127,107 $ 128,112 $ 65,801 $ 61,017
Adjusted Net Income (3) $ 49,254 $ 46,774 $ 26,857 $ 21,596
Weighted Average number of
shares 60,300,000 64,462,088 60,300,000 67,800,000
Adjusted Earnings per share
(3) $ 0.82 $ 0.73 $ 0.45 $ 0.32
EBITDA (3) $ 121,972 $ 127,019 $ 65,115 $ 60,568
Net Income $ 44,119 $ 45,681 $ 26,171 $ 21,147
Weighted Average number of
shares 60,300,000 64,462,088 60,300,000 67,800,000
Earnings per share $ 0.73 $ 0.71 $ 0.43 $ 0.31
(1) Accrued charter revenue represents the difference between
cash received during the period and revenue recognized on a
straight-line basis. In the early years of a charter with
escalating charter rates, voyage revenue will exceed cash received
during the period. (2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash "Accrued
charter revenue" recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. generally accepted accounting
principles, or "GAAP." We believe that the presentation of Voyage
revenue adjusted on a cash basis is useful to investors because it
presents the charter revenue for the relevant period based on the
then current daily charter rates. The increases or decreases in
daily charter rates under our charter party agreements are
described in the notes to the "Fleet List" below. (3) Adjusted net
income, adjusted earnings per share, EBITDA and adjusted EBITDA are
non-GAAP measures. Refer to the reconciliation of net income to
adjusted net income and net income to EBITDA and adjusted EBITDA
below.
Non-GAAP Measures
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP financial measures used
in managing the business may provide users of these financial
measures additional meaningful comparisons between current results
and results in prior operating periods. Management believes that
these non-GAAP financial measures can provide additional meaningful
reflection of underlying trends of the business because they
provide a comparison of historical information that excludes
certain items that impact the overall comparability. Management
also uses these non-GAAP financial measures in making financial,
operating and planning decisions and in evaluating the Company's
performance. Tables below set out supplemental financial data and
corresponding reconciliations to GAAP financial measures for the
six-month and three-month periods ended June 30, 2012 and June 30,
2011. Non-GAAP financial measures should be viewed in addition to,
and not as an alternative for, the Company's reported results
prepared in accordance with GAAP. Non-GAAP financial measures
include (i) Voyage revenue adjusted on a cash basis (reconciled
above), (ii) Adjusted Net Income, (iii) Adjusted earnings per
share, (iv) EBITDA and (v) Adjusted EBITDA.
Reconciliation of Net Income to Adjusted Net
Income
Six-month period ended Three-month period ended
June 30, June 30,
------------------------ ------------------------
(Expressed in thousands
of U.S. dollars, except
share and per share
data) 2011 2012 2011 2012
----------- ----------- ----------- -----------
Net Income $ 44,119 $ 45,681 $ 26,171 $ 21,147
Accrued charter revenue 15,442 985 7,454 480
Gain on sale/disposal of
vessels (10,771) (1,303) (10,771) (4,104)
Realized (Gain) Loss on
Euro/USD forward
contracts (802) 732 (797) 364
Loss on derivative
instruments 69 679 4,800 3,709
Initial purchases of
consumable stores for
newly acquired vessels 1,197 - - -
----------- ----------- ----------- -----------
Adjusted Net income $ 49,254 $ 46,774 $ 26,857 $ 21,596
=========== =========== =========== ===========
Adjusted Earnings per
Share $ 0.82 $ 0.73 $ 0.45 $ 0.32
=========== =========== =========== ===========
Weighted average number
of shares 60,300,000 64,462,088 60,300,000 67,800,000
=========== =========== =========== ===========
Adjusted Net income and Adjusted Earnings per Share represent
net income before gain/(loss) on sale of vessels, non-cash changes
in fair value of derivatives, non-cash "Accrued charter revenue"
recorded under charters with escalating charter rates and the cash
of partial purchases of consumable stores for newly acquired
vessels. "Accrued charter revenue" is attributed to the timing
difference between the revenue recognition and the cash collection.
However, Adjusted Net income and Adjusted Earnings per Share are
not recognized measurements under U.S. generally accepted
accounting principles, or "GAAP." We believe that the presentation
of Adjusted Net income and Adjusted Earnings per Share are useful
to investors because they are frequently used by securities
analysts, investors and other interested parties in the evaluation
of companies in our industry. We also believe that Adjusted Net
income and Adjusted Earnings per Share are useful in evaluating our
ability to service additional debt and make capital expenditures.
In addition, we believe that Adjusted Net income and Adjusted
Earnings per Share are useful in evaluating our operating
performance and liquidity position compared to that of other
companies in our industry because the calculation of Adjusted Net
income and Adjusted Earnings per Share generally eliminates the
effects of the accounting effects of capital expenditures and
acquisitions, certain hedging instruments and other accounting
treatments, items which may vary for different companies for
reasons unrelated to overall operating performance and liquidity.
In evaluating Adjusted Net income and Adjusted Earnings per Share,
you should be aware that in the future we may incur expenses that
are the same as or similar to some of the adjustments in this
presentation. Our presentation of Adjusted Net income and Adjusted
Earnings per Share should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
Reconciliation of Net Income to Adjusted
EBITDA
Six-month period ended Three-month period
June 30, ended June 30,
---------------------- ----------------------
(Expressed in thousands of
U.S. dollars) 2011 2012 2011 2012
---------- ---------- ---------- ----------
Net Income $ 44,119 $ 45,681 $ 26,171 $ 21,147
Interest and finance costs 36,106 38,237 17,362 17,997
Interest income (309) (716) (118) (432)
Depreciation 38,013 39,881 19,568 19,868
Amortization of dry-docking
and special survey costs 4,043 3,936 2,132 1,988
---------- ---------- ---------- ----------
EBITDA 121,972 127,019 65,115 60,568
Accrued charter revenue 15,442 985 7,454 480
Gain on sale/disposal of
vessels (10,771) (1,303) (10,771) (4,104)
Realized (Gain) Loss on
Euro/USD forward contracts (802) 732 (797) 364
Loss on derivative
instruments 69 679 4,800 3,709
Initial purchases of
consumable stores for newly
acquired vessels 1,197 - - -
---------- ---------- ---------- ----------
Adjusted EBITDA $ 127,107 $ 128,112 $ 65,801 $ 61,017
========== ========== ========== ==========
EBITDA represents net income before interest and finance costs,
interest income, depreciation and amortization of deferred
dry-docking & special survey costs. Adjusted EBITDA represents
net income before interest and finance costs, interest income,
depreciation, amortization of deferred dry-docking & special
survey costs, gain/(loss) on sale of vessels, non-cash changes in
fair value of derivatives, non-cash "Accrued charter revenue"
recorded under charters with escalating charter rates and the cash
of partial purchases of consumable stores for newly acquired
vessels. "Accrued charter revenue" is attributed to the time
difference between the revenue recognition and the cash collection.
However, EBITDA and Adjusted EBITDA are not recognized measurements
under U.S. generally accepted accounting principles, or "GAAP." We
believe that the presentation of EBITDA and Adjusted EBITDA are
useful to investors because they are frequently used by securities
analysts, investors and other interested parties in the evaluation
of companies in our industry. We also believe that EBITDA and
Adjusted EBITDA are useful in evaluating our ability to service
additional debt and make capital expenditures. In addition, we
believe that EBITDA and Adjusted EBITDA are useful in evaluating
our operating performance and liquidity position compared to that
of other companies in our industry because the calculation of
EBITDA and Adjusted EBITDA generally eliminates the effects of
financings, income taxes and the accounting effects of capital
expenditures and acquisitions, items which may vary for different
companies for reasons unrelated to overall operating performance
and liquidity. In evaluating EBITDA and Adjusted EBITDA, you should
be aware that in the future we may incur expenses that are the same
as or similar to some of the adjustments in this presentation. Our
presentation of EBITDA and Adjusted EBITDA should not be construed
as an inference that our future results will be unaffected by
unusual or non-recurring items.
Note: Items to consider for comparability include gains and
charges. Gains positively impacting net income are reflected as
deductions to net income. Charges negatively impacting net income
are reflected as increases to net income.
Results of Operations
Three-month period ended June 30, 2012 compared
to the three-month period ended June 30, 2011
During the three-month periods ended June 30, 2012 and 2011, we
had an average of 46.4 and 48.7 vessels, respectively, in our
fleet. In the three-month period ended June 30, 2012 we accepted
delivery of the secondhand vessels Koroni and Kyparissia with an
aggregate TEU capacity of 7,684 and we sold two second-hand vessels
for scrap with an aggregate TEU capacity of 5,844. In the
three-month period ended June 30, 2011 we sold three second-hand
vessels with an aggregate TEU capacity of 4,914. In the three-month
period ended June 30, 2012 and 2011 our fleet ownership days
totaled 4,225 and 4,432 days, respectively. Ownership days are the
primary driver of voyage revenue and vessels' operating expenses
and represent the aggregate number of days in a period during which
each vessel in our fleet is owned.
Three-month period
ended June 30,
------------------
(Expressed in millions of U.S.
dollars, Percentage
except percentages) 2011 2012 Change Change
-------- -------- ------- ----------
Voyage revenue $ 94.3 $ 96.0 $ 1.7 1.8%
Voyage expenses (1.4) (1.6) 0.2 14.3%
Voyage expenses - related parties (0.7) (0.7) - -
Vessels operating expenses (28.2) (28.7) 0.5 1.8%
General and administrative
expenses (1.3) (1.2) (0.1) (7.7%)
Management fees - related parties (4.0) (3.8) (0.2) (5.0%)
Amortization of dry-docking and
special survey costs (2.1) (2.0) (0.1) (4.8%)
Depreciation (19.6) (19.9) 0.3 1.5%
Gain on sale of vessels 10.8 4.1 (6.7) (62.0%)
Foreign exchange gains / (losses) - 0.2 0.2 100.0%
Interest income 0.1 0.4 0.3 300.0%
Interest and finance costs (17.4) (18.0) 0.6 3.4%
Other 0.5 - (0.5) (100.0%)
Gain (loss) on derivative
instruments (4.8) (3.7) (1.1) (22.9%)
-------- --------
Net Income
$ 26.2 $ 21.1 $ (5.1) (19.5%)
======== ========
Three-month period
ended June 30,
-------------------
(Expressed in millions of U.S.
dollars, Percentage
except percentages) 2011 2012 Change Change
--------- --------- ------- ----------
Voyage revenue $ 94.3 $ 96.0 $ 1.7 1.8%
Accrued charter revenue 7.5 0.5 (7.0) (93.3%)
--------- ---------
Voyage revenue adjusted on a cash
basis $ 101.8 $ 96.5 $ (5.3) (5.2%)
========= =========
Three-month
period ended
June 30,
---------------
Percentage
Fleet operational data 2011 2012 Change Change
------- ------- ------ ----------
Average number of vessels 48.7 46.4 (2.3) (4.7%)
Ownership days 4,432 4,225 (207) (4.7%)
Number of vessels underwent dry-dock
during the periods 1 - -
Voyage Revenue
Voyage revenue increased by 1.8%, or $1.7 million, to $96.0
million during the three-month period ended June 30, 2012, from
$94.3 million during the three-month period ended June 30, 2011.
Ownership days decreased by 4.7% or 207 days to 4.225 days during
the three month period ended June 30, 2012, from 4,432 days during
the three month period ended June 30, 2011. The increase in Voyage
revenues is mainly due to the fact that larger vessels, chartered
on average at higher rates, were employed by the Company during the
three month period ended June 30, 2012 compared to the three month
period ended June 30, 2011. Voyage revenues adjusted on a cash
basis (which eliminates non-cash "Accrued charter revenue"),
decreased by 5.2%, or $5.3 million, to $96.5 million during the
three-month period ended June 30, 2012, from $101.8 million during
the three-month period ended June 30, 2011. The decrease is mainly
attributable to the decreased ownership days of our fleet and the
decreased charter hire received in accordance with certain
escalation clauses of our charters during the three month period
ended June 30, 2012 compared to the three month period ended June
30, 2011; partly offset by the fact that larger vessels, chartered
on average at higher rates, were employed by the Company during the
three-month period ended June 30, 2012, compared to the three-month
period ended June 30, 2011.
Voyage Expenses
Voyage expenses increased by 14.3%, or $0.2 million, to $1.6
million during the three-month period ended June 30, 2012, from
$1.4 million during the three-month period ended June 30, 2011. The
increase was primarily attributable to the off-hire expenses,
mainly relating to bunkers consumption of the two vessels we
acquired in the three-month period ended June 30, 2012, on their
way to their charterers partially offset by the decreased third
party commissions charged to us in the three-month period ended
June 30, 2012 compared to the three-month period ended June 30,
2011.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.7 million
during the three month period ended June 30, 2012 and in the amount
of $0.7 million during the three month period ended June 30, 2011
represent fees of 0.75% on voyage revenues charged to us by
Costamare Shipping Company S.A. as provided under our management
agreement signed on November 4, 2010 (initial public offering
completion date).
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized
gain (loss) under derivative contracts entered into in relation to
foreign currency exposure, increased by 1.8%, or $0.5 million, to
$28.7 million during the three-month period ended June 30, 2012,
from $28.2 million during the three-month period ended June 30,
2011. The increase is attributable to the delivery expenses of the
two vessels we acquired during the three month period ended June
30, 2012 partly offset by the decreased ownership days of our
fleet.
General and Administrative Expenses
General and administrative expenses decreased by 7.7%, or $0.1
million, to $1.2 million during the three-month period ended June
30, 2012, from $1.3 million during the three-month period ended
June 30, 2011. The decrease in the three-month period ended June
30, 2012 was mainly attributable to decreased public-company
related expenses charged to us (i.e. legal, public relations and
other) compared to the three-month period ended June 30, 2011.
Furthermore, general and administrative expenses for the three
month period ended June 30, 2012 and 2011 include $0.25 million for
the services of the Company's officers in aggregate charged to us
by Costamare Shipping Company S.A. as provided under our management
agreement signed on November 4, 2010.
Management Fees - related parties
Management fees paid to our managers decreased by 5.0%, or $0.2
million, to $3.8 million during the three-month period ended June
30, 2012, from $4.0 million during the three-month period ended
June 30, 2011. The decrease was primarily attributable to the
decreased fleet ownership days for the three month period ended
June 30, 2012, compared to the three month period ended June 30,
2011.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs
was $2.0 million and $2.1 million for the three-month period ended
June 30, 2012, and for the three-month period ended June 30, 2011,
respectively. During the three month period ended June 30, 2012 and
2011 no vessels and one vessel underwent their special survey,
respectively.
Depreciation
Depreciation expense increased by 1.5%, or $0.3 million, to
$19.9 million during the three-month period ended June 30, 2012,
from $19.6 million during the three-month period ended June 30,
2011. The increase was primarily attributable to the depreciation
expense charged for the two vessels that were delivered to us
during the three month period ended June 30, 2012 partly offset by
the depreciation expense not charged following the sale of two
vessels during the three month period ended June 30, 2012.
Gain on Sale of Vessels
In the three-month period ended June 30, 2012, we recorded a
gain of $4.1 million from the sale of vessels Gifted and Genius I.
In the three-month period ended June 30, 2011, we recorded a gain
of $10.8 million from the sale of vessels MSC Sierra, MSC Namibia
and MSC Sudan.
Foreign Exchange Gains / (Losses)
Foreign exchange gains were $0.2 million during the three-month
period ended June 30, 2012, compared to $0 during the three-month
period ended June 30, 2011, representing a change of $0.2 million
resulting from favorable currency exchange rate movements between
the U.S. dollar and the Euro.
Interest Income
During the three-month period ended June 30, 2012, interest
income increased by 300.0%, or $0.3 million, to $0.4 million, from
$0.1 million during the three-month period ended June 30, 2011. The
change in interest income was mainly due to the increased cash
deposits in interest bearing accounts during the three-month period
ended June 30, 2012, compared to the three month-period ended June
30, 2011, which resulted from the increased average cash balance
during the three month period ended June 30, 2012, compared to the
three month period ended June 30, 2011.
Interest and Finance Costs
Interest and finance costs increased by 3.4%, or $0.6 million,
to $18.0 million during the three-month period ended June 30, 2012,
from $17.4 million during the three-month period ended June 30,
2011. The increase is partly attributable to increased financing
costs and commitment fees charged to us mainly in relation to new
credit facilities we entered into, in connection with our new
building program partly offset by the capitalized interest in
relation with our newbuilding program.
Gain (Loss) on Derivative Instruments
The fair value of our 28 interest rate derivative instruments
which were outstanding as of June 30, 2012 equates to the amount
that would be paid by us or to us should those instruments be
terminated. As of June 30, 2012, the fair value of these 28
interest rate derivative instruments in aggregate amounted to a
liability of $183.4 million. Twenty-seven of the 28 interest rate
derivative instruments that were outstanding as at June 30, 2012
qualified for hedge accounting and the effective portion of the
change in their fair value is recorded in "Comprehensive loss". For
the three-month period ended June 30, 2012, a loss of $19.8 million
has been included in "Comprehensive loss" and a loss of $3.3
million has been included in "Gain (loss) on derivative
instruments" in the consolidated statement of income, resulting
from the fair market value change of the interest rate derivative
instruments during the three-month period ended June 30, 2012.
Cash Flows
Three-month period ended June 30, 2012 and June
30, 2011
Three-month period ended
Condensed cash flows June 30,
------------------------
(Expressed in millions of U.S. dollars) 2011 2012
----------- -----------
Net Cash Provided by Operating Activities $ 43.7 $ 48.6
Net Cash Used in Investing Activities $ (36.6) $ (62.3)
Net Cash Provided by (Used in) Financing
Activities $ 57.1 $ (18.3)
Net Cash Provided by Operating
Activities
Net cash flows provided by operating activities for the
three-month period ended June 30, 2012, increased by $4.9 million
to $48.6 million, compared to $43.7 million for the three-month
period ended June 30, 2011. The increase was primarily attributable
to the favorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $11.2 million,
partly offset by decreased cash from operations of $5.2 million
deriving from escalating charter rates.
Net Cash Used in Investing Activities
Net cash used in investing activities was $62.3 million in the
three-month period ended June 30, 2012, which consists of (a) $49.0
million advance payments for the construction and purchase of five
newbuild vessels, (b) $24.9 million in payments for the acquisition
of two secondhand vessels and (c) $11.6 million we received from
the sale of two vessels.
Net cash used in investing activities was $36.6 million in the
three-month period ended June 30, 2011, which consists of (a) $49.3
million advance payments for the construction and purchase of five
newbuild vessels and (b) $12.7 million we received from the sale of
three vessels.
Net Cash Provided By (Used in) Financing
Activities
Net cash used in financing activities was $18.3 million in the
three-month period ended June 30, 2012, which mainly consists of
(a) $43.8 million of indebtedness that we repaid, (b) $51.2 million
we drew down from four of our credit facilities and (c) $18.3
million we paid for dividends to our stockholders for the first
quarter of the year 2012.
Net cash provided by financing activities was $57.1 million in
the three-month period ended June 30, 2011, which mainly consists
of (a) $29.9 million of indebtedness that we repaid, (b) $107.6
million we drew down from two of our credit facilities and (c)
$15.1 million we paid for dividends to our stockholders for the
first quarter of the year 2011.
Results of Operations
Six-month period ended June 30, 2012 compared
to the six-month period ended June 30, 2011
During the six-month periods ended June 30, 2012 and 2011, we
had an average of 46.4 and 47.1 vessels, respectively, in our
fleet. In the six-month period ended June 30, 2012, we accepted
delivery of three secondhand vessels MSC Ulsan, Koroni and
Kyparissia with an aggregate TEU capacity of 11,816, and we sold
three vessels Gather, Gifted and Genius I with an aggregate TEU
capacity of 8,766. In the six-month period ended June 30, 2011, we
accepted delivery of eight secondhand vessels with an aggregate TEU
capacity of 17,458 and we sold three second-hand vessels with an
aggregate TEU capacity of 4,914. In the six-month periods ended
June 30, 2012 and 2011, our fleet ownership days totaled 8,452 and
8,531 days, respectively. Ownership days are the primary driver of
voyage revenue and vessels operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Six-month period
ended June 30,
------------------
(Expressed in millions of U.S. Percentage
dollars, except percentages) 2011 2012 Change Change
-------- --------
Voyage revenue $ 180.3 $ 196.1 $ 15.8 8.8%
Voyage expenses (2.5) (2.3) (0.2) (8.0%)
Voyage expenses - related
parties (1.4) (1.5) 0.1 7.1%
Vessels operating expenses (55.7) (56.4) 0.7 1.3%
General and administrative
expenses (2.6) (2.1) (0.5) (19.2%)
Management fees - related
parties (7.5) (7.6) 0.1 1.3%
Amortization of dry-docking and
special survey costs (4.0) (3.9) (0.1) (2.5%)
Depreciation (38.0) (39.9) 1.9 5.0%
Gain on sale/disposal of vessels 10.8 1.3 (9.5) (88.0%)
Foreign exchange gains/ (losses) 0.1 0.3 0.2 200.0%
Interest income 0.3 0.7 0.4 133.3%
Interest and finance costs (36.1) (38.2) 2.1 5.8%
Other 0.5 (0.1) (0.6) (120.0%)
Gain (Loss) on derivative
instruments (0.1) (0.7) 0.6 600.0%
-------- --------
Net Income $ 44.1 $ 45.7 $ 1.6 3.6%
======== ========
Six-month period
ended June 30,
------------------
(Expressed in millions of U.S. Percentage
dollars, except percentages) 2011 2012 Change Change
-------- --------
Voyage revenue $ 180.3 $ 196.1 $ 15.8 8.8%
Accrued charter revenue 15.4 1.0 (14.4) (93.5%)
-------- --------
Voyage revenue adjusted on a
cash basis $ 195.7 $ 197.1 $ 1.4 0.7%
======== ========
Six-month period
Fleet operational data ended June 30,
-----------------
Percentage
2011 2012 Change Change
------- -------
Average number of vessels 47.1 46.4 (0.7) (1.5%)
Ownership days 8,531 8,452 (79) (0.9%)
Number of vessels under dry-
docking 8 2 (6) -
Voyage Revenue
Voyage revenue increased by 8.8%, or $15.8 million, to $196.1
million during the six-month period ended June 30, 2012, from
$180.3 million during the six-month period ended June 30, 2011.
Ownership days decreased by 0.9% or 79 days to 8,452 days during
the six month period ended June 30, 2012, from 8,531 days during
the six month period ended June 30, 2011. The increase in Voyage
revenues is mainly due to the fact that larger vessels, chartered
on average at higher rates, were employed by the Company during the
six month period ended June 30, 2012 compared to the six month
period ended June 30, 2011. Voyage revenues adjusted on a cash
basis (which eliminates non-cash "Accrued charter revenue"),
increased by 0.7%, or $1.4 million, to $197.1 million during the
six-month period ended June 30, 2012, from $195.7 million during
the six-month period ended June 30, 2011. The increase is
attributable to the fact that larger vessels, chartered on average
at higher rates, were employed by the Company during the six month
period ended June 30, 2012, compared to the six month period ended
June 30, 2011; partly offset by decreased charter hire received in
accordance with certain escalation clauses of our charters during
the six month period ended June 30, 2012, compared to the six month
period ended June 30, 2011.
Voyage Expenses
Voyage expenses decreased by 8.0%, or $0.2 million, to $2.3
million during the six-month period ended June 30, 2012, from $2.5
million during the six-month period ended June 30, 2011. The
decrease was primarily attributable to the decreased off-hire
expenses of our fleet, mainly bunkers consumption, and to the
decreased number of vessels that were dry-docked during the
six-month period ended June 30, 2012, compared to the six-month
period ended June 30, 2011.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $1.5 million
during the six-month period ended June 30, 2012, and in the amount
of $1.4 million during the six-month period ended June 30, 2011,
represent fees of 0.75% on voyage revenues charged to us by
Costamare Shipping Company S.A. as provided under our management
agreement signed on November 4, 2010 (initial public offering
completion date).
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized
gain or loss under derivative contracts entered into in relation to
foreign currency exposure, increased by 1.3%, or $0.7 million, to
$56.4 million during the six-month period ended June 30, 2012, from
$55.7 million during the six-month period ended June 30, 2011. The
increase is attributable to the delivery expenses of the three
vessels we acquired during the six month period ended June 30,
2012, partly offset by the decreased ownership days of our
fleet.
General and Administrative Expenses
General and administrative expenses decreased by 19.2%, or $0.5
million, to $2.1 million during the six-month period ended June 30,
2012, from $2.6 million during the six-month period ended June 30,
2011. The decrease in the six-month period ended June 30, 2012 was
mainly attributable to decreased legal and audit fees charged to us
compared to the six-month period ended June 30, 2011. Furthermore,
general and administrative expenses for the six-month periods ended
June 30, 2012 and June 30, 2011 include $0.5 million, respectively,
for the services of the Company's officers in aggregate charged to
us by Costamare Shipping Company S.A. as provided under our
management agreement signed on November 4, 2010 (initial public
offering completion date).
Management Fees - related parties
Management fees paid to our managers increased by 1.3%, or $0.1
million, to $7.6 million during the six-month period ended June 30,
2012, from $7.5 million during the six-month period ended June 30,
2011.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs
for the six-month periods ended June 30, 2012 and 2011 was $3.9
million and $4.0 million, respectively. During the six-month
periods ended June 30, 2012 and 2011, 2 vessels and 8 vessels,
respectively, underwent their special survey.
Depreciation
Depreciation expense increased by 5.0%, or $1.9 million, to
$39.9 million during the six-month period ended June 30, 2012, from
$38.0 million during the six-month period ended June 30, 2011. The
increase was primarily attributable to the depreciation expense
charged for the two containerships that were delivered to us during
the six month period ended December 31, 2011 and to the three
containerships delivered to us during the six-month period ended
June 30, 2012, partly offset by the depreciation expense not
charged relating to the seven vessels sold or disposed of during
the six month period ended December 31, 2011 and the six-month
period ended June 30, 2012.
Gain on Sale of Vessels
During the six-month period ended June 30, 2012, we recorded a
gain of $1.3 million mainly from the sale of three vessels. During
the six-month period ended June 30, 2011, we recorded a gain of
$10.8 million from the sale of three vessels.
Foreign Exchange Gains
Foreign exchange gains amounted to $0.3 million and $0.1 million
during the six-month periods ended June 30, 2012 and 2011,
respectively.
Interest Income
During the six-month periods ended June 30, 2012 and June 30,
2011, interest income was $0.7 million and $0.3 million,
respectively. The change in interest income was mainly due to the
increased cash deposits in interest bearing accounts during the
six-month period ended June 30, 2012, compared to the six
month-period ended June 30, 2011, which resulted from the increased
average cash balance during the six month period ended June 30,
2012 compared to the six month period ended June 30, 2011.
Interest and Finance Costs
Interest and finance costs increased by 5.8%, or $2.1 million,
to $38.2 million during the six-month period ended June 30, 2012,
from $36.1 million during the six-month period ended June 30, 2011.
The increase is partly attributable to increased interest expense,
financing costs and commitment fees charged to us mainly in
relation to new credit facilities we entered into with regards to
our newbuilding program partly offset by the capitalized interest
in relation with our newbuilding program.
Gain (Loss) on Derivative Instruments
The fair value of our 28 interest rate derivative instruments
which were outstanding as of June 30, 2012 equates to the amount
that would be paid by us or to us should those instruments be
terminated. As of June 30, 2012, the fair value of these 28
interest rate derivative instruments in aggregate amounted to a
liability of $183.4 million. Twenty-seven of the 28 interest rate
derivative instruments that were outstanding as at June 30, 2012
qualified for hedge accounting and the effective portion of the
change in their fair value is recorded in "Comprehensive loss". For
the six-month period ended June 30, 2012, a loss of $11.2 million
has been included in "Comprehensive loss" and a loss of $1.5
million has been included in "Gain (loss) on derivative
instruments" in the consolidated statement of income, resulting
from the fair market value change of the interest rate derivative
instruments during the six-month period ended June 30, 2012.
Cash Flows
Six-month period ended June 30, 2012 and
2011
Condensed cash flows Six-month period ended June 30,
--------------------------------
(Expressed in millions of U.S. dollars) 2011 2012
--------------- ---------------
Net Cash Provided by Operating Activities $ 83.1 $ 84.0
Net Cash Used in Investing Activities $ (195.5) $ (106.7)
Net Cash Provided by Financing Activities $ 22.3 $ 166.3
Net Cash Provided by Operating
Activities
Net cash flows provided by operating activities for the
six-month period ended June 30, 2012 increased by $0.9 million to
$84.0 million, compared to $83.1 million for the six-month period
ended June 30, 2011. The increase was primarily attributable to (a)
favorable change in working capital position, excluding the current
portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $1.3 million
and (b) decreased dry-docking payments of $2.0 million, partly
offset by increased payments for interest (including swap payments)
of $2.4 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $106.7 million in the
six-month period ended June 30, 2012, which consisted of (a) $69.2
million advance payments for the construction and purchase of five
newbuild vessels, (b) $54.9 million in payments for the acquisition
of three secondhand vessels and (c) $17.4 million we received from
the sale of three vessels.
Net cash used in investing activities was $195.5 million in the
six-month period ended June 30, 2011, which consists of (a) $145.8
million advance payments for the construction and purchase of ten
newbuild vessels, (b) $74.8 million in payments for the acquisition
of eight second-hand vessels, (c) $19.0 million we received for the
sale of three vessels and (d) $6.1 million we received from the
sale of governmental bonds.
Net Cash Provided By Financing
Activities
Net cash provided by financing activities was $166.3 million in
the six-month period ended June 30, 2012, which mainly consisted of
(a) $90.2 million of indebtedness that we repaid, (b) $199.3
million we drew down from five of our credit facilities, (c) $34.6
million we paid for dividends to our stockholders for the fourth
quarter of the year ended December 31, 2011 and the first quarter
of the year 2012 and (d) $100.6 million net proceeds we received
from our follow-on offering in March 2012, net of underwriting
discounts and expenses incurred in the offering.
Net cash provided by financing activities was $22.3 million in
the six-month period ended June 30, 2011, which mainly consists of
(a) $49.3 million of indebtedness that we repaid, (b) $107.6
million we drew down from two of our credit facilities and (c)
$30.2 million, in aggregate, we paid for dividends to our
stockholders for the fourth quarter of the year 2010 and the first
quarter of the year 2011.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of June 30, 2012, we had a total cash liquidity of $296.0
million, consisting of cash, cash equivalents and restricted
cash.
Debt-free vessels
As of July 22, 2012, the following vessels were free of
debt.
Unencumbered Vessels in the water (refer
to fleet list for full charter details)
Year TEU
Vessel Name Built Capacity
---------- ----------
NAVARINO 2010 8,531
AKRITAS 1987 3,152
MSC CHALLENGER 1986 2,633
HORIZON 1991 1,068
Capital commitments
As of July 22, 2012, we had outstanding commitments relating to
our contracted newbuilds aggregating $734.2 million payable in
installments until the vessels are delivered.
Conference Call details
On Wednesday, July 25, 2012 at 8:30 a.m. EDT, Costamare's
management team will hold a conference call to discuss the
financial results.
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 "Costamare."
A replay of the conference call will be available until August
3, 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 550 000 and the access code required for the replay
is: 25306424#
Live webcast
There will also be a simultaneous live webcast over the
Internet, through the Costamare Inc. website (www.costamare.com)
under the "Investors" section. Participants to the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world's leading owners and
providers of containerships for charter. The Company has 37 years
of history in the international shipping industry and a fleet of 57
containerships, with a total capacity of approximately 327,000 TEU,
including 10 newbuilds on order. Costamare Inc.'s common shares
trade on the New York Stock Exchange under the symbol "CMRE."
Forward-Looking Statements
This earnings release contains "forward-looking statements." In
some cases, you can identify these statements by forward-looking
words such as "believe", "intend", "anticipate", "estimate",
"project", "forecast", "plan", "potential", "may", "should",
"could" and "expect" and similar expressions. These statements are
not historical facts but instead represent only Costamare's belief
regarding future results, many of which, by their nature, are
inherently uncertain and outside of Costamare's control. It is
possible that actual results may differ, possibly materially, from
those anticipated in these forward-looking statements. For a
discussion of some of the risks and important factors that could
affect future results, see the discussion in Costamare Inc.'s
Annual Report on Form 20-F (File No. 001-34934) under the caption
"Risk Factors."
Fleet List
The tables below provide additional information, as of July 22,
2012, about our fleet of 57 containerships, including 10 newbuilds
on order. Each vessel is a cellular containership, meaning it is a
dedicated container vessel.
Average
Daily
Charter
Rate
Until
Earliest
Expiry
Current of
Daily Expiration Charter
Time Charter of (U.S.
Vessel Year Capacity Charter Hire (U.S. Charter dollars)
Name Charterer Built (TEU) Term(1) dollars) (1) 2
-- ---------- --------- ----- -------- -------- ---------- --------- -------
COSCO December
1 GUANGZHOU COSCO 2006 9,469 12 years 36,400 2017 36,400
-- ---------- --------- ----- -------- -------- ---------- --------- -------
COSCO January
2 NINGBO COSCO 2006 9,469 12 years 36,400 2018 36,400
-- ---------- --------- ----- -------- -------- ---------- --------- -------
COSCO February
3 YANTIAN COSCO 2006 9,469 12 years 36,400 2018 36,400
-- ---------- --------- ----- -------- -------- ---------- --------- -------
COSCO April
4 BEIJING COSCO 2006 9,469 12 years 36,400 2018 36,400
-- ---------- --------- ----- -------- -------- ---------- --------- -------
COSCO
5 HELLAS COSCO 2006 9,469 12 years 37,519 May 2018 37,519
-- ---------- --------- ----- -------- -------- ---------- --------- -------
1.5 September
6 NAVARINO Evergreen 2010 8,531 years 30,950 2013 30,950
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MAERSK A.P.
KAWASAKI(i Moller- December
7 ) Maersk 1997 7,403 10 years 37,000 2017 37,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller- December
8 KURE(i) Maersk 1996 7,403 10 years 37,000 2017 37,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller- February
9 KOKURA(i) Maersk 1997 7,403 10 years 37,000 2018 37,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC September
10 METHONI MSC 2003 6,724 10 years 29,000 2021 29,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
SEALAND Moller- March
11 NEW YORK Maersk 2000 6,648 11 years 30,375(3) 2018 27,462
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller-
12 KOBE Maersk 2000 6,648 11 years 38,179(4) May 2018 30,155
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
SEALAND Moller-
13 WASHINGTON Maersk 2000 6,648 11 years 30,375(5) June 2018 27,607
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
SEALAND Moller- August
14 MICHIGAN Maersk 2000 6,648 11 years 25,375(6) 2018 25,832
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
SEALAND Moller- October
15 ILLINOIS Maersk 2000 6,648 11 years 30,375(7) 2018 27,732
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller- November
16 KOLKATA Maersk 2003 6,644 11 years 38,490(8) 2019 31,991
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller- February
17 KINGSTON Maersk 2003 6,644 11 years 38,461(9) 2020 32,225
-- ---------- --------- ----- -------- -------- ---------- --------- -------
A.P.
MAERSK Moller- April
18 KALAMATA Maersk 2003 6,644 11 years 38,418(10) 2020 32,300
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 5.3 November
19 ROMANOS MSC 2003 5,050 years 28,000 2016 28,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
ZIM NEW July
20 YORK ZIM 2002 4,992 13 years 23,150 2015(11) 23,150
-- ---------- --------- ----- -------- -------- ---------- --------- -------
ZIM August
21 SHANGHAI ZIM 2002 4,992 13 years 23,150 2015(12) 23,150
-- ---------- --------- ----- -------- -------- ---------- --------- -------
ZIM
PIRAEUS(ii March
22 ) ZIM 2004 4,992 10 years 18,274(13) 2014 29,486
-- ---------- --------- ----- -------- -------- ---------- --------- -------
OAKLAND Hapag September
23 EXPRESS Lloyd 2000 4,890 8 years 30,500 2016 30,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
HALIFAX Hapag October
24 EXPRESS Lloyd 2000 4,890 8 years 30,500 2016 30,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
SINGAPORE Hapag
25 EXPRESS Lloyd 2000 4,890 8 years 30,500 July 2016 30,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 7.8 August
26 MANDRAKI MSC 1988 4,828 years 20,000 2017 20,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 8.2 September
27 MYKONOS MSC 1988 4,828 years 20,000 2017 20,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
5.3 March
28 MSC ULSAN MSC 2002 4,132 years 16,500 2017 16,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 4.3 August
29 ANTWERP MSC 1993 3,883 years 17,500 2013 17,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 3.2 February
30 WASHINGTON MSC 1984 3,876 years 17,250 2013 17,250
-- ---------- --------- ----- -------- -------- ---------- --------- -------
3.1
31 MSC KYOTO MSC 1981 3,876 years 17,250 June 2013 17,250
-- ---------- --------- ----- -------- -------- ---------- --------- -------
April
32 KORONI Evergreen 1998 3,842 2 years 15,200(14) 2014 11,882
-- ---------- --------- ----- -------- -------- ---------- --------- -------
33 KYPARISSIA Evergreen 1998 3,842 2 years 15,200(15) May 2014 11,836
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 9.5 September
34 AUSTRIA MSC 1984 3,584 years 17,250(16) 2018 13,671
-- ---------- --------- ----- -------- -------- ---------- --------- -------
Sea
Consortiu 1.3 August
35 KARMEN m 1991 3,351 years 6,900 2012 6,900
-- ---------- --------- ----- -------- -------- ---------- --------- -------
1.1 April
36 MARINA Evergreen 1992 3,351 years 15,200(17) 2013 11,034
-- ---------- --------- ----- -------- -------- ---------- --------- -------
Sea
KONSTANTIN Consortiu 1.3 August
37 A m 1992 3,351 years 7,100 2012 7,100
-- ---------- --------- ----- -------- -------- ---------- --------- -------
Hapag August
38 AKRITAS Lloyd 1987 3,152 4 years 12,500 2014 12,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 4.8
39 CHALLENGER MSC 1986 2,633 years 10,000 July 2015 10,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC
40 REUNION MSC 1992 2,024 6 years 12,000(18) June 2014 11,504
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC 6.8
41 NAMIBIA II MSC 1991 2,023 years 11,500 July 2014 11,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
MSC SIERRA 5.7
42 II MSC 1991 2,023 years 11,500 June 2014 11,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
January
43 MSC PYLOS MSC 1991 2,020 3 years 11,500 2014 11,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
44 PROSPER 1996 1,504
-- ---------- --------- ----- -------- -------- ---------- --------- -------
1.7 April
45 ZAGORA MSC 1995 1,162 years 5,500 2013 5,500
-- ---------- --------- ----- -------- -------- ---------- --------- -------
STADT
LUEBECK 0.1 August
46 (iii) CMA CGM 2001 1.078 years 5,800 2012 5,800
-- ---------- --------- ----- -------- -------- ---------- --------- -------
0.3 August
47 HORIZON APL 1991 1,068 years 6,000 2012 6,000
-- ---------- --------- ----- -------- -------- ---------- --------- -------
Newbuilds
Approximate
Contracted Capacity
Vessel Name Shipyard Charterer Delivery (TEU)
------------- -------------- --------- -------------- --------------
Sungdong 4th Quarter
1 Hull S4010 Shipbuilding MSC 2012 9,000
-- ---------- -------------- --------- -------------- --------------
Sungdong 4th Quarter
2 Hull S4011 Shipbuilding MSC 2012 9,000
-- ---------- -------------- --------- -------------- --------------
Sungdong 1st Quarter
3 Hull S4020 Shipbuilding Evergreen 2013 8,800
-- ---------- -------------- --------- -------------- --------------
Sungdong 1st Quarter
4 Hull S4021 Shipbuilding Evergreen 2013 8,800
-- ---------- -------------- --------- -------------- --------------
Sungdong 2nd Quarter
5 Hull S4022 Shipbuilding Evergreen 2013 8,800
-- ---------- -------------- --------- -------------- --------------
Sungdong 2nd Quarter
6 Hull S4023 Shipbuilding Evergreen 2013 8,800
-- ---------- -------------- --------- -------------- --------------
Sungdong 3rd Quarter
7 Hull S4024 Shipbuilding Evergreen 2013 8,800
-- ---------- -------------- --------- -------------- --------------
Jiangnan
8 H1068A Changxing MSC November 2013 9,000
-- ---------- -------------- --------- -------------- --------------
Jiangnan
9 H1069A Changxing MSC December 2013 9,000
-- ---------- -------------- --------- -------------- --------------
Jiangnan
10 H1070A Changxing MSC January 2014 9,000
-- ---------- -------------- --------- -------------- --------------
1. Charter terms and expiration dates are based on the earliest
date charters could expire.
2. This average rate is calculated based on contracted charter
rates for the days remaining between July 22, 2012 and the earliest
expiration of each charter. Certain of our charter rates change
until their earliest expiration dates, as indicated in the
footnotes below.
3. This charter rate changes on May 8, 2014 to $26,100 per day
until the earliest redelivery date.
4. This charter rate changes on June 30, 2014 to $26,100 per day
until the earliest redelivery date.
5. This charter rate changes on August 24, 2014 to $26,100 per
day until the earliest redelivery date.
6. This charter rate changes on October 20, 2014 to $26,100 per
day until the earliest redelivery date.
7. This charter rate changes on December 4, 2014 to $26,100 per
day until the earliest redelivery date.
8. This charter rate changes on January 13, 2016 to $26,100 per
day until the earliest redelivery date.
9. This charter rate changes on April 28, 2016 to $26,100 per
day until the earliest redelivery date.
10. This charter rate changes on June 11, 2016 to $26,100 per
day until the earliest redelivery date.
11. Charterers shall have the option to terminate the charter by
giving six months' notice, in which case they will have to make a
one-time payment which shall be the $6.9 million reduced
proportionately by the amount of time by which the original 3-year
extension period is shortened.
12. Charterers shall have the option to terminate the charter by
giving six months' notice, in which case they will have to make a
one-time payment which shall be the $6.9 million reduced
proportionately by the amount of time by which the original 3-year
extension period is shortened.
13. This charter rate changes on January 1, 2013 to $22,150 per
day until the earliest redelivery date. In addition, the charterer
is required to pay approximately $5.0 million no later than July
2016, representing accrued charter hire, the payment of which was
deferred.
14. The charter rate will change on November 2012 to $10,500 per
day and will escalate to $11,500 per day, starting from May 2013
until the earliest redelivery date.
15. The charter rate will change on November 2012 to $10,500 per
day and will escalate to $11,500 per day, starting from June 2013
until the earliest redelivery date
16. As from December 1, 2012 until redelivery, the charter rate
is to be a minimum of $13,500 per day plus 50% of the difference
between the market rate and the charter rate of $13,500. The market
rate is to be determined annually based on the Hamburg ConTex type
3500 TEU index published on October 1 of each year until
redelivery.
17. This charter rate changes in November 2012 to $8,000 per day
until the earliest redelivery date.
18. This charter rate changes on July 27, 2012 to $11,500 per
day until the earliest redelivery date.
(i) The charterer has a unilateral option to extend the charter
of the vessel for two periods of 30 months each +/-90 days on the
final period performed, at a rate of $41,700 per day.
(ii) The charterer has a unilateral option to extend the charter
of the vessel for a period of 12 months +/-60 days at a rate of
$27,500 per day.
(iii) The vessel is expected to be delivered by the end of July
2012.
COSTAMARE INC.
Consolidated Statements of Income
Six-months ended June Three-months ended June
30, 30,
----------------------- -----------------------
(Expressed in thousands of
U.S. dollars, except share
and per share amounts) 2011 2012 2011 2012
----------- ----------- ----------- -----------
(Unaudited)
REVENUES:
Voyage revenue $ 180,279 $ 196,076 $ 94,318 $ 96,045
EXPENSES:
Voyage expenses (2,521) (2,283) (1,423) (1,592)
Voyage expenses - related
parties (1,357) (1,452) (711) (711)
Vessels' operating expenses (55,733) (56,365) (28,230) (28,673)
General and administrative
expenses (2,465) (2,099) (1,284) (1,174)
Management fees - related
parties (7,483) (7,573) (4,000) (3,824)
Amortization of dry-docking
and special survey costs (4,043) (3,936) (2,132) (1,988)
Depreciation (38,013) (39,881) (19,568) (19,868)
Gain on sale of vessels 10,771 1,303 10,771 4,104
Foreign exchange gains
(losses) 73 192 (17) 80
----------- ----------- ----------- -----------
Operating income $ 79,508 $ 83,982 $ 47,724 $ 42,399
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSES):
Interest income $ 309 $ 716 $ 118 $ 432
Interest and finance costs (36,106) (38,237) (17,362) (17,997)
Other 477 (101) 491 22
Loss on derivative
instruments (69) (679) (4,800) (3,709)
----------- ----------- ----------- -----------
Total other income
(expenses) $ (35,389)$ (38,301)$ (21,553)$ (21,252)
----------- ----------- ----------- -----------
Net Income $ 44,119 $ 45,681 $ 26,171 $ 21,147
=========== =========== =========== ===========
Earnings per common share,
basic and diluted $ 0.73 $ 0.71 $ 0.43 $ 0.31
=========== =========== =========== ===========
Weighted average number of
shares, basic and diluted 60,300,000 64,462,088 60,300,000 67,800,000
=========== =========== =========== ===========
COSTAMARE INC.
Consolidated Balance Sheets
As of December 31, As of June 30,
------------------ ----------------
(Expressed in thousands of U.S.
dollars) 2011 2012
------------------ ----------------
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 97,996 $ 241,690
Restricted cash 7,371 12,604
Receivables 2,150 2,936
Inventories 9,335 12,649
Due from related parties 3,585 521
Fair value of derivatives - -
Insurance claims receivable 3,076 2,681
Accrued charter revenue 13,428 14,176
Prepayments and other 1,910 3,054
------------------ ----------------
Total current assets $ 138,851 $ 290,311
------------------ ----------------
FIXED ASSETS, NET:
Advances for vessels acquisitions $ 148,373 $ 217,569
Vessels, net 1,618,887 1,618,178
------------------ ----------------
Total fixed assets, net $ 1,767,260 $ 1,835,747
------------------ ----------------
NON-CURRENT ASSETS:
Deferred charges, net $ 32,641 $ 32,160
Restricted cash 38,707 41,740
Accrued charter revenue 5,086 5,605
------------------ ----------------
Total assets $ 1,982,545 $ 2,205,563
------------------ ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 153,176 $ 161,170
Accounts payable 4,057 6,220
Accrued liabilities 13,455 13,621
Unearned revenue 6,901 6,988
Fair value of derivatives 46,481 52,472
Other current liabilities 2,519 2,429
------------------ ----------------
Total current liabilities $ 226,589 $ 242,900
------------------ ----------------
NON-CURRENT LIABILITIES
Long-term debt, net of current portion $ 1,290,244 $ 1,391,318
Fair value of derivatives, net of
current portion 125,194 131,036
Unearned revenue, net of current
portion 10,532 11,257
------------------ ----------------
Total non-current liabilities $ 1,425,970 $ 1,533,611
------------------ ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock $ 6 $ 7
Additional paid-in capital 519,971 620,554
Accumulated deficit (48,854) (37,760)
Accumulated other comprehensive loss (141,137) (153,749)
Total stockholders' equity $ 329,986 $ 429,052
------------------ ----------------
Total liabilities and stockholders'
equity $ 1,982,545 $ 2,205,563
================== ================
Contacts Company Contact: Gregory Zikos Chief
Financial Officer Konstantinos Tsakalidis Business Development /
Investor Relations Costamare Inc. Athens, Greece Tel: (+30)
210-949-0000 Email: ir@costamare.com www.costamare.com Investor
Relations Advisor/ Media Contact: Nicolas Bornozis President
Capital Link, Inc. 230 Park Avenue, Suite 1536 Tel: 212-661-7566
Email: costamare@capitallink.com
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jul 2023 to Jul 2024