Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today
reported unaudited financial results for the third quarter and nine
months ended September 30, 2012.
Financial Highlights
- Voyage revenues of $94.9 million and $291.0 million for the
three and the nine- months ended September 30, 2012,
respectively.
- Voyage revenues adjusted on a cash basis of $97.8 million and
$294.9 million for the three and the nine- months ended September
30, 2012, respectively.
- Adjusted EBITDA of $62.5 million and $190.6 million for the
three and the nine- months ended September 30, 2012,
respectively.
- Net income of $12.5 million or $0.18 per share and $58.2
million or $0.89 per share for the three and the nine- months ended
September 30, 2012, respectively.
- Adjusted net income of $20.9 million or $0.31 per share and
$67.7 million or $1.03 per share for the three and nine- months
ended September 30, 2012, respectively.
New Business Developments
- The Company purchased the 1997-built, 2,458 TEU container
vessel Messini (ex. Pembroke) for $6.8 million. The vessel was
delivered on August 2, 2012. The acquisition was entirely financed
with cash on hand. The Company also entered into a charter
agreement with Evergreen for a period of approximately 18 months at
a daily rate of $8,100. The vessel was delivered to her charterers
on September 24, 2012.
- The Company has agreed to charter the 1992-built, 3,351 TEU
container vessel Konstantina to Evergreen for a period of
approximately one year at a daily rate of $7,550. The vessel is
expected to be delivered to her charterers on October 29,
2012.
- On August 8, 2012, we took delivery of the 2001-built, 1,078
TEU containership Stadt Luebeck. The vessel was purchased from an
insolvency administrator for a purchase price of $11.3 million. The
acquisition was funded entirely out of bank financing provided by
an existing lender to the Company. The vessel is currently
chartered to CMA CGM. We have entered into an agreement, subject to
final documentation, to extend the time charter agreement with CMA
CGM from October 23, 2012 for a further period of a minimum of six
months and a maximum of 10 months at a daily rate of $6,200. The
charterer has a unilateral option to extend the charter for a
period of an additional six months after the initial period at a
daily rate of $8,500.
- The Company has entered into an agreement, subject to final
documentation, to extend the time charter agreement with Sea
Consortium for the 1991-built, 3,351 TEU containership Karmen, from
October 1, 2012 for a minimum of four months and a maximum of nine
months, at a daily rate of $7,000.
- The Company sold the 1991-built, 1,068 TEU containership
Horizon for demolition for a sale price of approximately $3.7
million. The vessel was delivered to its buyers on September 21,
2012. The sale of the Horizon resulted in a book loss of $7.1
million.
- The Company has entered into an agreement, subject to final
documentation, to charter the 1996-built, 1,504 TEU containership
Prosper with Sinokor for a minimum of one month and a maximum of
four months, at a daily rate of $5,750. The vessel is expected to
be delivered to its Charterers on October 24, 2012.
Follow-On Offering
- On October 19, 2012, the Company completed a follow-on public
offering of 7.0 million shares of its common stock at $14.00 per
share. The gross proceeds from the offering before the underwriting
discount and other offering expenses were $98.0 million. Members of
the Konstantakopoulos family, who in the aggregate own a majority
of the common stock of the Company, purchased 700,000 shares in the
offering. We plan to use the net proceeds of this offering for
capital expenditures, including vessel acquisitions, and for other
general corporate purposes, which may include repayments of
indebtedness.
Dividend Announcements
- On October 5, 2012, the Company declared a dividend for the
third quarter ended September 30, 2012, of $0.27 per share, payable
on November 6, 2012 to stockholders of record at the close of
trading of the Company's common stock on the New York Stock
Exchange on October 22, 2012. This will be the Company's eighth
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 third quarter of the year, the Company continued to
deliver positive results.
"In August we accepted delivery of two second hand vessels,
which were acquired through distressed sales. Both vessels have
been subsequently chartered for periods ranging between 6 and 18
months. As part of our fleet renewal process we have sold for
demolition a 1,068 TEU 1991-built ship.
"In a challenging market we have fixed all the vessels that were
coming out of charter during the remainder of the year; at the same
time we have minimized our rechartering risk. The charters for the
vessels opening in 2013 and 2014 account for approximately 4% and
3% of our 2013 and 2014 contracted revenues respectively.
"On October 5th we declared a dividend for the third 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.
"Finally on October 19th, we closed the offering of 7 million
shares of common stock that was priced at $ 14 per share. Members
of the founding family have purchased 700,000 shares in the
offering. In today's environment the Company has a strong cash
position coupled with low leverage and unencumbered assets.
"We believe that going forward we are well positioned to pursue
new business opportunities in a market environment that favors well
capitalized players."
Financial Summary
Nine-month period ended Three-month period
September 30, ended September 30,
----------------------- -----------------------
(Expressed in thousands of
U.S. dollars, except share
and per share data): 2011 2012 2011 2012
----------- ----------- ----------- -----------
(Unaudited)
-----------------------------------------------
Voyage revenue $ 280,165 $ 290,962 $ 99,886 $ 94,886
Accrued charter revenue (1) $ 23,218 $ 3,909 $ 7,776 $ 2,924
Voyage revenue adjusted on a
cash basis (2) $ 303,383 $ 294,871 $ 107,662 $ 97,810
Adjusted EBITDA (3) $ 199,998 $ 190,587 $ 72,891 $ 62,475
Adjusted Net Income (3) $ 80,168 $ 67,721 $ 30,914 $ 20,947
Weighted Average number of
shares 60,300,000 65,582,847 60,300,000 67,800,000
Adjusted Earnings per share
(3) $ 1.33 $ 1.03 $ 0.51 $ 0.31
EBITDA (3) $ 181,340 $ 181,064 $ 59,368 $ 54,045
Net Income $ 61,510 $ 58,198 $ 17,391 $ 12,517
Weighted Average number of
shares 60,300,000 65,582,847 60,300,000 67,800,000
Earnings per share $ 1.02 $ 0.89 $ 0.29 $ 0.18
(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
nine-month and three-month periods ended September 30, 2012 and
September 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
Nine-month period ended Three-month period ended
September 30, September 30,
------------------------ ------------------------
(Expressed in thousands
of U.S. dollars, except
share and per share 2011 2012 2011 2012
data)
----------- ----------- ----------- -----------
(Unaudited)
-------------------------------------------------
Net Income $ 61,510 $ 58,198 $ 17,391 $ 12,517
Accrued charter revenue 23,218 3,909 7,776 2,924
(Gain)/ Loss on
sale/disposal of vessels (10,771) 4,296 - 5,599
Realized (Gain) Loss on
Euro/USD forward
contracts (1,566) 997 (764) 265
Loss on derivative
instruments 6,580 321 6,511 (358)
Initial purchases of
consumable stores for
newly acquired vessels 1,197 - - -
----------- ----------- ----------- -----------
Adjusted Net income $ 80,168 $ 67,721 $ 30,914 $ 20,947
=========== =========== =========== ===========
Adjusted Earnings per
Share $ 1.33 $ 1.03 $ 0.51 $ 0.31
=========== =========== =========== ===========
Weighted average number
of shares 60,300,000 65,582,847 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, realized
(gain)/loss on Euro/USD forward contracts 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
Nine-month period Three-month period
ended September 30, ended September 30,
-------------------- --------------------
(Expressed in thousands of U.S.
dollars) 2011 2012 2011 2012
--------- --------- --------- ---------
(Unaudited)
------------------------------------------
Net Income $ 61,510 $ 58,198 $ 17,391 $ 12,517
Interest and finance costs 55,953 57,840 19,847 19,603
Interest income (354) (1,173) (45) (457)
Depreciation 58,092 60,182 20,079 20,301
Amortization of dry-docking and
special survey costs 6,139 6,017 2,096 2,081
--------- --------- --------- ---------
EBITDA 181,340 181,064 59,368 54,045
Accrued charter revenue 23,218 3,909 7,776 2,924
(Gain)/ Loss on sale/disposal of
vessels (10,771) 4,296 - 5,599
Realized (Gain) Loss on Euro/USD
forward contracts (1,566) 997 (764) 265
Loss on derivative instruments 6,580 321 6,511 (358)
Initial purchases of consumable
stores for newly acquired
vessels 1,197 - - -
--------- --------- --------- ---------
Adjusted EBITDA $ 199,998 $ 190,587 $ 72,891 $ 62,475
========= ========= ========= =========
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, realized
(gain)/loss on Euro/USD forward contracts 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 September 30, 2012
compared to the three-month period ended September 30,
2011
During the three-month periods ended September 30, 2012 and
2011, we had an average of 47.1 and 48.5 vessels, respectively, in
our fleet. In the three-month period ended September 30, 2012, we
accepted delivery of the secondhand vessels Stadt Luebeck and
Messini with an aggregate TEU capacity of 3,536 and we sold the
second-hand vessel Horizon for scrap with a TEU capacity of 1,068.
In the three-month period ended September 30, 2011, we acquired the
secondhand vessel MSC Romanos with a TEU capacity of 5,060. In the
three-month period ended September 30, 2012 and 2011 our fleet
ownership days totaled 4,337 and 4,460 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
(Expressed in millions of U.S. period ended
dollars, except percentages) September 30,
----------------
Percentage
2011 2012 Change Change
------- ------- ------- ----------
Voyage revenue $ 99.9 $ 94.9 $ (5.0) (5.0%)
Voyage expenses (0.8) (1.7) 0.9 112.5%
Voyage expenses - related parties (0.8) (0.7) (0.1) (12.5%)
Vessels operating expenses (27.6) (28.3) 0.7 2.5%
General and administrative expenses (1.1) (1.0) (0.1) (9.1%)
Management fees - related parties (3.8) (3.8) - -
Amortization of dry-docking and
special survey costs (2.1) (2.1) - -
Depreciation (20.1) (20.3) 0.2 1.0%
Gain (loss) on sale of vessels - (5.6) 5.6 100.0%
Foreign exchange gains / (losses) (0.1) (0.1) - -
Interest income 0.1 0.4 0.3 300.0%
Interest and finance costs (19.8) (19.6) (0.2) (1.0%)
Other 0.1 - (0.1) (100.0%)
Gain (loss) on derivative
instruments (6.5) 0.4 6.9 106.2%
------- -------
Net Income $ 17.4 $ 12.5 $ (4.9) (28.2%)
======= =======
Three-month
(Expressed in millions of U.S. period ended
dollars, except percentages) September 30,
---------------
Percentage
2011 2012 Change Change
------- ------- ------- ----------
Voyage revenue $ 99.9 $ 94.9 $ (5.0) (5.0%)
Accrued charter revenue 7.8 2.9 (4.9) (62.8%)
------- -------
Voyage revenue adjusted on a cash
basis $ 107.7 97.8 $ (9.9) (9.2%)
======= =======
Three-month
period ended
September 30,
-------------
Percentage
Fleet operational data 2011 2012 Change Change
------ ------ ------ ----------
Average number of vessels 48.5 47.1 (1.4) (2.9%)
Ownership days 4,460 4,337 (123) (2.8%)
Number of vessels underwent dry-dock
during the periods - 4 4
Voyage Revenue
Voyage revenue decreased by 5.0%, or $5.0 million, to $94.9
million during the three-month period ended September 30, 2012,
from $99.9 million during the three-month period ended September
30, 2011. The decrease in Voyage revenues is mainly due to
decreased ownership days of our fleet by 2.8% during the
three-month period ended September 30, 2012 compared to the three
month period ended September 30, 2011. Voyage revenues adjusted on
a cash basis (which eliminates non-cash "Accrued charter revenue"),
decreased by 9.2%, or $9.9 million, to $97.8 million during the
three-month period ended September 30, 2012, from $107.7 million
during the three-month period ended September 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 September 30, 2012 compared to the three-month
period ended September 30, 2011.
Voyage Expenses
Voyage expenses increased by 112.5%, or $0.9 million, to $1.7
million during the three-month period ended September 30, 2012,
from $0.8 million during the three-month period ended September 30,
2011. The increase was primarily attributable to the off-hire
expenses, mainly relating to bunkers consumption of the four
vessels that were dry-docked during the three-month period ended
September 30, 2012 and of one of our vessels on her way to the
shipyard for dry-docking that commenced early October 2012; partly
offset by the decreased third party commissions charged to us in
the three-month period September 30, 2012 compared to the
three-month period ended September 30, 2011.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.7 million
during the three-month period ended September 30, 2012 and in the
amount of $0.8 million during the three-month period ended
September 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 2.5%, or $0.7 million, to
$28.3 million during the three-month period ended September 30,
2012, from $27.6 million during the three-month period ended
September 30, 2011. The increase is partly attributable to the
increase of the average vessel size of the fleet during the
three-month period ended September 30, 2012 compared to the same
period of 2011; partly offset by the decreased ownership days of
our fleet during the three month-period ended September 30, 2012
compared to the same period of 2011.
General and Administrative Expenses
General and administrative expenses decreased by 9.1%, or $0.1
million, to $1.0 million during the three-month period ended
September 30, 2012, from $1.1 million during the three-month period
ended September 30, 2011. The decrease in the three-month period
ended September 30, 2012 was mainly attributable to decreased
public-company related expenses charged to us compared to the
three-month period ended September 30, 2011. Furthermore, general
and administrative expenses for the three-month period ended
September 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 were $3.8 million during
the three-month period ended September 30, 2012 and for the
three-month period ended September 30, 2011.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs
was $2.1 million for the three-month period ended September 30,
2012 and for the three-month period ended September 30, 2011.
During the three-month period ended September 30, 2012 and 2011
four vessels and no vessels underwent their special survey,
respectively.
Depreciation
Depreciation expense increased by 1.0%, or $0.2 million, to
$20.3 million during the three-month period ended September 30,
2012, from $20.1 million during the three-month period ended
September 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 September 30,
2012 partly offset by the depreciation expense not charged
following the sale of one vessel during the three-month period
ended September 30, 2012.
Loss on Sale of Vessels
In the three-month period ended September 30, 2012, we recorded
a net loss of $5.6 million from the sale of the vessel Horizon
(including the effect of the partial reversal of a provision
recorded in 2011 for costs associated with the grounding of the
vessel Rena). In the three-month period ended September 30, 2011,
no vessels were sold.
Foreign Exchange Gains / (Losses)
Foreign exchange losses were $0.1 during the three-month period
ended September 30, 2012, and during the three-month period ended
September 30, 2011.
Interest Income
During the three-month period ended September 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 September 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 September 30, 2012, compared to the three month-period
ended September 30, 2011, which resulted from the increased average
cash balance during the three-month period ended September 30,
2012, compared to the three-month period ended September 30,
2011.
Interest and Finance Costs
Interest and finance costs decreased by 1.0%, or $0.2 million,
to $19.6 million during the three-month period ended September 30,
2012, from $19.8 million during the three-month period ended
September 30, 2011. The decrease is partly attributable to
decreased 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 to our new-building program.
Gain (Loss) on Derivative Instruments
The fair value of our 28 interest rate derivative instruments
which were outstanding as of September 30, 2012, equates to the
amount that would be paid by us or to us should those instruments
be terminated. As of September 30, 2012, the fair value of these 28
interest rate derivative instruments in aggregate amounted to a
liability of $192.8 million. Twenty-seven of the 28 interest rate
derivative instruments that were outstanding as at September 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 September 30, 2012, a loss of $9.4
million has been included in "Comprehensive loss" and a loss of
$0.05 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 September 30,
2012.
Cash Flows
Three-month period ended September 30, 2012 and
September 30, 2011
Three-month period
Condensed cash flows ended September 30,
----------------------
(Expressed in millions of U.S. dollars) 2011 2012
---------- ----------
Net Cash Provided by Operating Activities $ 51.3 $ 39.4
Net Cash Used in Investing Activities $ (61.1) $ (55.3)
Net Cash Provided by (Used in) Financing Activities $ 10.7 $ (8.6)
Net Cash Provided by Operating
Activities
Net cash flows provided by operating activities for the
three-month period ended September 30, 2012, decreased by $11.9
million to $39.4 million, compared to $51.3 million for the
three-month period ended September 30, 2011. The decrease was
primarily attributable to (a) the decreased cash from operations of
$9.9 million deriving from escalating charter rates and (b) the
increased dry-docking payments of $4.0 million; partly offset by
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 $2.9
million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $55.3 million in the
three-month period ended September 30, 2012, which consists of (a)
$39.9 million advance payments for the construction and purchase of
four newbuild vessels, (b) $18.8 million in payments for the
acquisition of two secondhand vessels and (c) $3.4 million we
received from the sale of one vessel.
Net cash used in investing activities was $61.1 million in the
three-month period ended September 30, 2011, which primarily
consists of (a) $55.0 million payments for the purchase of MSC
Romanos, (b) $6.0 million advance payment for the acquisition of
MSC Viviana delivered to us in the fourth quarter of 2011 and (c)
$1.8 million in aggregate advance payments we received for the sale
of two vessels delivered to their new owners in the fourth quarter
of 2011.
Net Cash Provided By (Used in) Financing
Activities
Net cash used in financing activities was $8.6 million in the
three-month period ended September 30, 2012, which mainly consists
of (a) $39.1 million of indebtedness that we repaid, (b) $41.9
million we drew down from three of our credit facilities and (c)
$18.3 million we paid for dividends to our stockholders for the
second quarter of the year 2012.
Net cash provided by financing activities was $10.7 million in
the three-month period ended September 30, 2011, which mainly
consists of (a) $34.6 million of indebtedness that we repaid, (b)
$61.4 million we drew down from two of our credit facilities and
(c) $15.1 million we paid for dividends to our stockholders for the
second quarter of the year 2011.
Results of Operations
Nine-month period ended September 30, 2012
compared to the nine-month period ended September 30, 2011
During the nine-month periods ended September 30, 2012 and 2011,
we had an average of 46.7 and 47.6 vessels, respectively, in our
fleet. In the nine-month period ended September 30, 2012, we
accepted delivery of five secondhand vessels MSC Ulsan, Koroni,
Kyparissia, Stadt Luebeck and Messini with an aggregate TEU
capacity of 15,352, and we sold four vessels Gather, Gifted, Genius
I and Horizon with an aggregate TEU capacity of 9,834. In the
nine-month period ended September 30, 2011, we accepted delivery of
nine secondhand vessels MSC Pylos, Zagora, Marina, Prosper,
Konstantina, MSC Sierra II, MSC Namibia II, MSC Sudan II and MSC
Romanos with an aggregate TEU capacity of 22,518 and we sold three
second-hand vessels MSC Sierra, MSC Namibia and MSC Sudan with an
aggregate TEU capacity of 4,914. In the nine-month periods ended
September 30, 2012 and 2011, our fleet ownership days totaled
12,789 and 12,991 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.
Nine-month
(Expressed in millions of U.S. period ended
dollars, except percentages) September 30,
----------------
Percentage
2011 2012 Change Change
------- -------
Voyage revenue $ 280.2 $ 291.0 $ 10.8 3.9%
Voyage expenses (3.3) (4.0) 0.7 21.2%
Voyage expenses - related parties (2.1) (2.2) 0.1 4.8%
Vessels operating expenses (83.3) (84.7) 1.4 1.7%
General and administrative expenses (3.7) (3.1) (0.6) (16.2%)
Management fees - related parties (11.3) (11.4) 0.1 0.9%
Amortization of dry-docking and
special survey costs (6.1) (6.0) (0.1) (1.6%)
Depreciation (58.1) (60.2) 2.1 3.6%
Gain (Loss) on sale/disposal of
vessels 10.8 (4.3) (15.1) (139.8%)
Foreign exchange gains/ (losses) - 0.2 0.2 100.0%
Interest income 0.4 1.1 0.7 175.0%
Interest and finance costs (56.0) (57.8) 1.8 3.2%
Other 0.6 (0.1) (0.7) (116.7%)
Gain (Loss) on derivative
instruments (6.6) (0.3) (6.3) (95.5%)
------- -------
Net Income $ 61.5 $ 58.2 $ (3.3) (5.4%)
======= =======
Nine-month
(Expressed in millions of U.S. period ended
dollars, except percentages) September 30,
---------------
Percentage
2011 2012 Change Change
------- -------
Voyage revenue $ 280.2 $ 291.0 $ 10.8 3.9%
Accrued charter revenue 23.2 3.9 (19.3) (83.2%)
------- -------
Voyage revenue adjusted on a cash
basis $ 303.4 $ 294.9 $ (8.5) (2.8%)
======= =======
Nine-month
period ended
Fleet operational data September 30,
-------------
Percentage
2011 2012 Change Change
------ ------
Average number of vessels 47.6 46.7 (0.9) (1.9%)
Ownership days 12,991 12,789 (202) (1.6%)
Number of vessels under dry-docking 8 6 (2) -
Voyage Revenue
Voyage revenue increased by 3.9%, or $10.8 million, to $291.0
million during the nine-month period ended September 30, 2012, from
$280.2 million during the nine-month period ended September 30,
2011. Ownership days decreased by 1.6% or 202 days to 12,789 days
during the nine-month period ended September 30, 2012, from 12,991
days during the nine-month period ended September 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 nine-month period ended September 30, 2012,
compared to the nine-month period ended September 30, 2011. Voyage
revenues adjusted on a cash basis (which eliminates non-cash
"Accrued charter revenue"), decreased by 2.8%, or $8.5 million, to
$294.9 million during the nine-month period ended September 30,
2012, from $303.4 million during the nine-month period ended
September 30, 2011. The decrease is attributable to decreased
charter hire received in accordance with certain escalation clauses
of our charters during the nine-month period ended September 30,
2012, compared to the nine-month period ended September 30, 2011;
partly offset by the fact that larger vessels, chartered on average
at higher rates, were employed by the Company during the nine-month
period ended September 30, 2012, compared to the nine-month period
ended September 30, 2011.
Voyage Expenses
Voyage expenses increased by 21.2%, or $0.7 million to $4.0
million during the nine-month period ended September 30, 2012 from
$3.3 million during the nine-month period ended September 30, 2011.
The increase was primarily attributable to the increased off-hire
expenses of our fleet, mainly bunkers consumption; partly offset by
the decreased third party commissions charged to us during the
nine-month period ended September 30, 2012, compared to the
nine-month period ended September 30, 2011.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $2.2 million
during the nine-month period ended September 30, 2012, and in the
amount of $2.1 million during the nine-month period ended September
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 1.7%, or $1.4 million, to
$84.7 million during the nine-month period ended September 30,
2012, from $83.3 million during the nine-month period ended
September 30, 2011. The increase is partly attributable to the
increase of the average vessel size of the fleet during the
nine-month period ended September 30, 2012 compared to the same
period of 2011; partly offset by the decreased ownership days of
our fleet during the nine-month period ended September 30, 2012,
compared to the same period of 2011.
General and Administrative Expenses
General and administrative expenses decreased by 16.2%, or $0.6
million, to $3.1 million during the nine-month period ended
September 30, 2012, from $3.7 million during the nine-month period
ended September 30, 2011. The decrease in the nine-month period
ended September 30, 2012, was mainly attributable to decreased
public-company related expenses charged to us compared to the
nine-month period ended September 30, 2011. Furthermore, general
and administrative expenses for the nine-month periods ended
September 30, 2012 and September 30, 2011 include $0.75 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 0.9%, or $0.1
million, to $11.4 million during the nine-month period ended
September 30, 2012, from $11.3 million during the nine-month period
ended September 30, 2011.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs
for the nine-month periods ended September 30, 2012 and 2011 was
$6.0 million and $6.1 million, respectively. During the nine-month
periods ended September 30, 2012 and 2011, 6 vessels and 8 vessels,
respectively, underwent their special survey.
Depreciation
Depreciation expense increased by 3.6%, or $2.1 million, to
$60.2 million during the nine-month period ended September 30,
2012, from $58.1 million during the nine-month period ended
September 30, 2011. The increase was primarily attributable to the
depreciation expense charged for the one containership that was
delivered to us during the three-month period ended December 31,
2011 and to the five containerships delivered to us during the
nine-month period ended September 30, 2012, partly offset by the
depreciation expense not charged relating to the eight vessels sold
or disposed of during the three-month period ended December 31,
2011 and the nine-month period ended September 30, 2012.
Gain / (Loss) on Sale of Vessels
During the nine-month period ended September 30, 2012, we
recorded a net loss of $4.3 million mainly from the sale of four
vessels (including the effect of the partial reversal of a
provision recorded in 2011 for costs associated with the grounding
of the vessel Rena). During the nine-month period ended September
30, 2011, we recorded a gain of $10.8 million from the sale of
three vessels.
Foreign Exchange Gains
Foreign exchange gains amounted to $0.2 million and $0 during
the nine-month periods ended September 30, 2012 and 2011,
respectively.
Interest Income
During the nine-month periods ended September 30, 2012 and
September 30, 2011, interest income was $1.1 million and $0.4
million, respectively. The change in interest income was mainly due
to the increased cash deposits in interest bearing accounts during
the nine-month period ended September 30, 2012, compared to the
nine-month-period ended September 30, 2011, which resulted from the
increased average cash balance during the nine-month period ended
September 30, 2012 compared to the nine-month period ended
September 30, 2011.
Interest and Finance Costs
Interest and finance costs increased by 3.2%, or $1.8 million,
to $57.8 million during the nine-month period ended September 30,
2012, from $56.0 million during the nine-month period ended
September 30, 2011. The increase is partly attributable to
increased interest expense and commitment fees charged to us mainly
in relation to new credit facilities we entered into with regards
to 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 September 30, 2012, equates to the
amount that would be paid by us or to us should those instruments
be terminated. As of September 30, 2012, the fair value of these 28
interest rate derivative instruments in aggregate amounted to a
liability of $192.8 million. Twenty-seven of the 28 interest rate
derivative instruments that were outstanding as at September 30,
2012, qualified for hedge accounting and the effective portion of
the change in their fair value is recorded in "Comprehensive loss".
For the nine-month period ended September 30, 2012, a loss of $20.5
million has been included in "Comprehensive loss" and a loss of
$1.6 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 nine-month period ended September 30,
2012.
Cash Flows
Nine-month periods ended September 30, 2012 and
2011
Nine-month period ended
Condensed cash flows September 30,
------------------------
(Expressed in millions of U.S. dollars) 2011 2012
----------- -----------
Net Cash Provided by Operating Activities $ 134.4 $ 123.4
Net Cash Used in Investing Activities $ (256.6) $ (162.0)
Net Cash Provided by Financing Activities $ 33.1 $ 157.7
Net Cash Provided by Operating
Activities
Net cash flows provided by operating activities for the
nine-month period ended September 30, 2012 decreased by $11.0
million to $123.4 million, compared to $134.4 million for the
nine-month period ended September 30, 2011. The decrease was
primarily attributable to (a) the decreased cash from operations of
$8.5 million deriving from escalating charter rates, (b) the
increased dry-docking payments of $1.9 million and (c) increased
payments for interest (including swap payments) of $3.1 million;
partly offset by 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
$4.2 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $162.0 million in the
nine-month period ended September 30, 2012, which consisted of (a)
$109.0 million advance payments for the construction and purchase
of seven newbuild vessels, (b) $73.7 million in payments for the
acquisition of five secondhand vessels and (c) $20.8 million we
received from the sale of four vessels.
Net cash used in investing activities was $256.6 million in the
nine-month period ended September 30, 2011, which consists of (a)
$147.3 million advance payments and other capitalized costs for the
construction and purchase of ten newbuild vessels, (b) $130.2
million in payments for the acquisition of nine second-hand
vessels, (c) $6.0 million in advance payment for the acquisition of
one second hand vessel delivered to us in the fourth quarter of
2011, (d) $19.0 million we received for the sale of three vessels
(e) $6.1 million we received from the sale of governmental bonds
and (f) $1.8 million in aggregate we received as advances for the
sale of two vessels delivered to their new owners in the fourth
quarter of 2011.
Net Cash Provided By Financing
Activities
Net cash provided by financing activities was $157.7 million in
the nine-month period ended September 30, 2012, which mainly
consisted of (a) $129.3 million of indebtedness that we repaid, (b)
$241.2 million we drew down from five of our credit facilities, (c)
$52.9 million we paid for dividends to our stockholders for the
fourth quarter of the year ended December 31, 2011, the first
quarter of the year 2012 and the second 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 $33.1 million in
the nine-month period ended September 30, 2011, which mainly
consists of (a) $83.9 million of indebtedness that we repaid, (b)
$169.0 million we drew down from four of our credit facilities and
(c) $45.2 million, in aggregate, we paid for dividends to our
stockholders for the fourth quarter of the year 2010, the first
quarter of the year 2011 and the second quarter of the year
2011.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of September 30, 2012, we had a total cash liquidity of
$264.5 million, consisting of cash, cash equivalents and restricted
cash.
Debt-free vessels
As of October 22, 2012, the following vessels were free of
debt.
Unencumbered Vessels in the water
(refer to fleet list in page 17 for full charter details)
Year TEU
Vessel Name Built Capacity
--------------------------------------------------------------
NAVARINO 2010 8,531
AKRITAS 1987 3,152
MSC CHALLENGER 1986 2,633
MESSINI 1997 2,458
Capital commitments
As of October 22, 2012, we had outstanding commitments relating
to our contracted newbuilds aggregating $686.7 million payable in
installments until the vessels are delivered.
Conference Call details:
On Wednesday, October 24, 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 October
31, 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 329,000 TEU,
including 10 newbuild containerships 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 October
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
Current Rate
Time Daily Until
Year Capacity Charter Charter Expiration Earliest
Vessel Name Charterer Built (TEU) Term Hire of Charter Expiry
(1) (U.S. (1) of
dollars) Charter
(U.S.
dollars)
(2)
----------------------------------------------------------------------------
COSCO 12 December
1 GUANGZHOU COSCO 2006 9,469 years 36,400 2017 36,400
----------------------------------------------------------------------------
COSCO 12 January
2 NINGBO COSCO 2006 9,469 years 36,400 2018 36,400
----------------------------------------------------------------------------
COSCO 12 February
3 YANTIAN COSCO 2006 9,469 years 36,400 2018 36,400
----------------------------------------------------------------------------
COSCO 12
4 BEIJING COSCO 2006 9,469 years 36,400 April 2018 36,400
----------------------------------------------------------------------------
COSCO 12
5 HELLAS COSCO 2006 9,469 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 Moller- 10 December
7 (i) Maersk 1997 7,403 years 37,000 2017 37,000
----------------------------------------------------------------------------
A.P.
MAERSK KURE Moller- 10 December
8 (i) Maersk 1996 7,403 years 37,000 2017 37,000
----------------------------------------------------------------------------
A.P.
MAERSK Moller- 10 February
9 KOKURA (i) Maersk 1997 7,403 years 37,000 2018 37,000
----------------------------------------------------------------------------
10 September
10 MSC METHONI MSC 2003 6,724 years 29,000 2021 29,000
----------------------------------------------------------------------------
A.P.
SEALAND NEW Moller- 11 30,375
11 YORK Maersk 2000 6,648 years (3) March 2018 27,325
----------------------------------------------------------------------------
A.P.
Moller- 11 38,179
12 MAERSK KOBE Maersk 2000 6,648 years (4) May 2018 29,789
----------------------------------------------------------------------------
A.P.
SEALAND Moller- 11 30,375
13 WASHINGTON Maersk 2000 6,648 years (5) June 2018 27,484
----------------------------------------------------------------------------
A.P.
SEALAND Moller- 11 25,375 August
14 MICHIGAN Maersk 2000 6,648 years (6) 2018 25,852
----------------------------------------------------------------------------
A.P.
SEALAND Moller- 11 30,375 October
15 ILLINOIS Maersk 2000 6,648 years (7) 2018 27,620
----------------------------------------------------------------------------
A.P.
MAERSK Moller- 11 38,490 November
16 KOLKATA Maersk 2003 6,644 years (8) 2019 31,759
----------------------------------------------------------------------------
A.P.
MAERSK Moller- 11 38,461 February
17 KINGSTON Maersk 2003 6,644 years (9) 2020 32,011
----------------------------------------------------------------------------
A.P.
MAERSK Moller- 11 38,418
18 KALAMATA Maersk 2003 6,644 years (10) April 2020 32,094
----------------------------------------------------------------------------
5.3 November
19 MSC ROMANOS MSC 2003 5,050 years 28,000 2016 28,000
----------------------------------------------------------------------------
ZIM NEW 13 July 2015
20 YORK ZIM 2002 4,992 years 23,150 (11) 23,150
----------------------------------------------------------------------------
ZIM 13 August
21 SHANGHAI ZIM 2002 4,992 years 23,150 2015 (11) 23,150
----------------------------------------------------------------------------
ZIM PIRAEUS 10 18,274
22 (ii) ZIM 2004 4,992 years (12) March 2014 31,532
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
8.2 September
27 MSC MYKONOS MSC 1988 4,828 years 20,000 2017 20,000
----------------------------------------------------------------------------
5.3
28 MSC ULSAN MSC 2002 4,132 years 16,500 March 2017 16,500
----------------------------------------------------------------------------
4.3 August
29 MSC 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
----------------------------------------------------------------------------
15,200
32 KORONI Evergreen 1998 3,842 2 years (13) April 2014 11,332
----------------------------------------------------------------------------
15,200
33 KYPARISSIA Evergreen 1998 3,842 2 years (14) May 2014 11,292
----------------------------------------------------------------------------
9.5 17,250 September
34 MSC AUSTRIA MSC 1984 3,584 years (15) 2018 13,518
----------------------------------------------------------------------------
Sea 1.5 January
35 KARMEN Consortium 1991 3,351 years 7,000 2013 7,000
----------------------------------------------------------------------------
1.1 15,200
36 MARINA Evergreen 1992 3,351 years (16) April 2013 8,767
----------------------------------------------------------------------------
1.0 7,550 September
37 KONSTANTINA Evergreen 1992 3,351 year (17) 2013 7,550
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
1.5 February
40 MESSINI Evergreen 1997 2,458 years 8,100 2014 8,100
----------------------------------------------------------------------------
41 MSC REUNION MSC 1992 2,024 6 years 11,500 June 2014 11,500
----------------------------------------------------------------------------
MSC NAMIBIA 6.8
42 II MSC 1991 2,023 years 11,500 July 2014 11,500
----------------------------------------------------------------------------
MSC SIERRA 5.7
43 II MSC 1991 2,023 years 11,500 June 2014 11,500
----------------------------------------------------------------------------
January
44 MSC PYLOS MSC 1991 2,020 3 years 11,500 2014 11,500
----------------------------------------------------------------------------
0.1 5,750 November
45 PROSPER Sinokor 1996 1,504 years (18) 2012 5,750
----------------------------------------------------------------------------
1.7
46 ZAGORA MSC 1995 1,162 years 5,500 April 2013 5,500
----------------------------------------------------------------------------
STADT 0.7 5,800
47 LUEBECK CMA CGM 2001 1.078 years (19) April 2013 6,198
----------------------------------------------------------------------------
Newbuilds
----------------------------------------------------------------------------
Vessel Name Shipyard Charterer Expected Delivery Approximate
(based on latest Capacity
shipyard schedule) (TEU)
----------------------------------------------------------------------------
1 Hull S4010 Sungdong Shipbuilding MSC February 2013 9,000
----------------------------------------------------------------------------
2 Hull S4011 Sungdong Shipbuilding MSC February 2013 9,000
----------------------------------------------------------------------------
3 Hull S4020 Sungdong Shipbuilding Evergreen May 2013 8,800
----------------------------------------------------------------------------
4 Hull S4021 Sungdong Shipbuilding Evergreen May 2013 8,800
----------------------------------------------------------------------------
5 Hull S4022 Sungdong Shipbuilding Evergreen July 2013 8,800
----------------------------------------------------------------------------
6 Hull S4023 Sungdong Shipbuilding Evergreen July 2013 8,800
----------------------------------------------------------------------------
7 Hull S4024 Sungdong Shipbuilding Evergreen August 2013 8,800
----------------------------------------------------------------------------
8 H1068A Jiangnan Changxing MSC December 2013 9,000
----------------------------------------------------------------------------
9 H1069A Jiangnan Changxing MSC December 2013 9,000
----------------------------------------------------------------------------
10 H1070A Jiangnan Changxing MSC February 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 October 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) 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.
(13) 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.
(14) 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.
(15) 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.
(16) This charter rate changes in November 2012 to $8,000 per day until the
earliest redelivery date.
(17) The vessel is expected to be delivered to her charterers by October 29,
2012.
(18) The vessel is expected to be delivered to her charterers by October 24,
2012.
(19) This charter rate changes on October 23, 2012 to $6,200 per day until
the earliest redelivery date. The charterer has a unilateral option to
extend the charter for an additional six months after the initial
period at a daily rate of $8,500.
(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.
COSTAMARE INC.
Consolidated Statements of Income
Nine-months ended Three-months ended
September 30, September 30,
------------------------ ------------------------
(Expressed in thousands
of U.S. dollars, except
share and per share
amounts) 2011 2012 2011 2012
----------- ----------- ----------- -----------
(Unaudited)
REVENUES:
Voyage revenue $ 280,165 $ 290,962 $ 99,886 $ 94,886
EXPENSES:
Voyage expenses (3,320) (3,990) (799) (1,707)
Voyage expenses -
related parties (2,110) (2,161) (753) (709)
Vessels' operating
expenses (83,312) (84,700) (27,579) (28,335)
General and
administrative expenses (3,567) (3,086) (1,102) (987)
Management fees -
related parties (11,275) (11,418) (3,792) (3,845)
Amortization of dry-
docking and special
survey costs (6,139) (6,017) (2,096) (2,081)
Depreciation (58,092) (60,182) (20,079) (20,301)
Gain/ (Loss) on sale of
vessels 10,771 (4,296) - (5,599)
Foreign exchange gains
(losses) (4) 167 (77) (25)
----------- ----------- ----------- -----------
Operating income $ 123,117 $ 115,279 $ 43,609 $ 31,297
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSES):
Interest income $ 354 $ 1,173 $ 45 $ 457
Interest and finance
costs (55,953) (57,840) (19,847) (19,603)
Other 572 (93) 95 8
Gain/ (Loss) on
derivative instruments (6,580) (321) (6,511) 358
----------- ----------- ----------- -----------
Total other income
(expenses) $ (61,607) $ (57,081) $ (26,218) $ (18,780)
----------- ----------- ----------- -----------
Net Income $ 61,510 $ 58,198 $ 17,391 $ 12,517
=========== =========== =========== ===========
Earnings per common
share, basic and
diluted $ 1.02 $ 0.89 $ 0.29 $ 0.18
=========== =========== =========== ===========
Weighted average number
of shares, basic and
diluted 60,300,000 65,582,847 60,300,000 67,800,000
=========== =========== =========== ===========
COSTAMARE INC.
Consolidated Balance Sheets
As of As of
December 31, September 30,
------------- -------------
(Expressed in thousands of U.S. dollars) 2011 2012
------------- -------------
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 97,996 $ 217,131
Restricted cash 7,371 5,454
Receivables 2,150 2,816
Inventories 9,335 11,080
Due from related parties 3,585 3,354
Fair value of derivatives - 258
Insurance claims receivable 3,076 2,923
Accrued charter revenue 13,428 5,041
Prepayments and other 1,910 2,528
------------- -------------
Total current assets $ 138,851 $ 250,585
------------- -------------
FIXED ASSETS, NET:
Advances for vessels acquisitions $ 148,373 $ 257,421
Vessels, net 1,618,887 1,606,489
------------- -------------
Total fixed assets, net $ 1,767,260 $ 1,863,910
------------- -------------
NON-CURRENT ASSETS:
Deferred charges, net $ 32,641 $ 33,605
Restricted cash 38,707 41,902
Accrued charter revenue 5,086 14,405
------------- -------------
Total assets $ 1,982,545 $ 2,204,407
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 153,176 $ 158,520
Accounts payable 4,057 5,457
Accrued liabilities 13,455 12,979
Unearned revenue 6,901 8,557
Fair value of derivatives 46,481 54,725
Other current liabilities 2,519 2,406
------------- -------------
Total current liabilities $ 226,589 $ 242,644
------------- -------------
NON-CURRENT LIABILITIES
Long-term debt, net of current portion $ 1,290,244 $ 1,396,733
Fair value of derivatives, net of current
portion 125,194 138,040
Unearned revenue, net of current portion 10,532 13,942
------------- -------------
Total non-current liabilities $ 1,425,970 $ 1,548,715
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock $ 6 $ 7
Additional paid-in capital 519,971 620,554
Accumulated deficit (48,854) (43,549)
Accumulated other comprehensive loss (141,137) (163,964)
------------- -------------
Total stockholders' equity $ 329,986 $ 413,048
------------- -------------
Total liabilities and stockholders' equity $ 1,982,545 $ 2,204,407
============= =============
Contacts: Company Contact: Gregory Zikos Chief Financial
Officer Konstantinos Tsakalidis Business Development Costamare
Inc., Athens, Greece Tel: (+30) 210-949-0000 Email:
ir@costamare.com Investor Relations Advisor/ Media Contact:
Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue,
Suite 1536 New York, N.Y. 10169 Tel.: (+1) 212-661-7566 E-mail:
costamare@capitallink.com
Costamare (NYSE:CMRE)
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