Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the third quarter and
nine-months ended September 30, 2019.
- Net Income increased by 157% to
$36.0 million for the three-months ended September 30, 2019 (“Q3
2019”) compared to $14.0 million for the three-months ended
September 30, 2018 (“Q3 2018”). Earnings per Share available to
common stockholders increased by 300% to $0.24 in Q3 2019 compared
to $0.06 in Q3 2018.
- Adjusted Net Income available to
common stockholders(1) increased by 215% to $30.9 million in Q3
2019 compared to $9.8 million in Q3 2018. Adjusted Earnings per
Share(1) available to common stockholders increased by 189% to
$0.26 in Q3 2019 compared to $0.09 in Q3 2018.
- Voyage Revenues increased by 36% to
$123.6 million in Q3 2019 compared to $90.9 million in Q3
2018.
- Chartered in total 14 vessels over
the quarter, benefiting from a rising market in the larger asset
classes.
- Declared dividend of $0.10 per
share on its common stock and dividends on all four classes of its
preferred stock.
(1) Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are non-GAAP measures
and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.
New Business Developments
A. New charter agreements
- The Company has chartered in total 14 vessels over the quarter.
More specifically, the Company:
I. Vessels
above 5,500 TEU capacity (Post – Panamax)
- Agreed to charter
the 2016-built, 11,010 TEU containership Cape Akritas with ZIM for
a period of 10 to 11.5 months at charterers’ option, at a daily
rate of $43,250.
- Agreed to charter
the 2017-built, 11,010 TEU containership Cape Kortia with ZIM for a
period of 10 to 11.5 months at charterers’ option, at a daily rate
of $43,250.
- Agreed to extend
the charter of the 2003-built, 5,928 TEU containership Venetiko
with Hapag Lloyd for a period starting from November 1, 2019 and
expiring at charterers’ option during the period from August 20,
2020 to November 1, 2020, at a daily rate of $20,000.
- Agreed to extend
the charter of the 2001-built, 5,576 TEU containership Ensenada
with ONE for a period starting from October 1, 2019 and expiring at
charterers’ option during the period from May 1, 2020 to June 30,
2020, at a daily rate of $21,000.
II. Vessels
below 5,500 TEU capacity
- Extended the
charters of the 2002-built, 4,992 TEU containerships ZIM New York
and ZIM Shanghai with ZIM for an additional one-year period
expiring on October 1, 2020 at a daily rate of $12,430 per vessel
starting from October 2, 2019.
- Agreed to
extend the charter of the 2002-built, 4,132 TEU containership Ulsan
with Maersk for a period of 20 to 24 months at charterers’ option,
starting from October 20, 2019 at a daily rate of $12,000.
- Agreed to
extend the charter of the 2004-built, 2,586 TEU containership
Lakonia with Evergreen for a period of 6 to 9 months at charterers’
option, starting from September 27, 2019.
- Agreed to
extend the charter of the 2000-built, 2,474 TEU containership
Areopolis with Evergreen for a period of 6 to 9 months at
charterers’ option, starting from September 21, 2019.
- Agreed to
extend the charter of the 1997-built, 2,458 TEU containership
Messini with Evergreen for a period of 6 to 9 months at charterers’
option, starting from September 3, 2019 at a daily rate of
$8,650.
- Agreed to
extend the charter of the 1991-built, 2,023 TEU containership MSC
Namibia II with MSC for a period starting from September 2, 2019
and expiring at charterers’ option during the period from November
5, 2019 to November 20, 2019, at a daily rate of $8,000.
- Agreed to
extend the charter of the 2000-built, 1,645 TEU containership
Neapolis with Evergreen for a period starting from September 14,
2019 and expiring at charterers’ option during the period from
January 5, 2020 to January 15, 2020, at a daily rate of $8,000.
- Agreed to
extend the charter of the 1996-built, 1,504 TEU containership
Prosper with Evergreen for a period of 6 to 9 months at charterers’
option, starting from August 28, 2019 at a daily rate of
$7,100.
- Agreed to
extend the charter of the 2008-built, 1,300 TEU containership
Michigan with MSC for a period of 11 to 13 months at charterers’
option, starting from October 15, 2019 at a daily rate of
$6,650.
B. Dividend announcements
- On October 2, 2019, we declared a dividend for the quarter
ended September 30, 2019, of $0.10 per share on our common stock,
payable on November 7, 2019, to stockholders of record of common
stock as of October 22, 2019.
- On October 2, 2019, we declared a dividend of $0.476563 per
share on our Series B Preferred Stock, a dividend of $0.531250 per
share on our Series C Preferred Stock, a dividend of $0.546875 per
share on our Series D Preferred Stock and a dividend of $0.554688
per share on our Series E Preferred Stock, which were all paid on
October 15, 2019 to holders of record as of October 11, 2019.
C. New Financing Agreements
- In July 2019, we concluded the refinancing for an amount of up
to $94 million of the indebtedness of the 2013-built 8,827 TEU
capacity containerships Valor and Valiant with a leading European
financial institution.
D. Vessel
disposals
- In October 2019, we agreed to sell
the 1991-built, 2,023 TEU capacity containership Sierra II (ex. MSC
Sierra II). The sale is expected to be completed in October
2019.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the third quarter of the year the
Company delivered profitable results. As was the case in the
previous quarter, net income and earnings per share more than
doubled, boosted by increased charter rates and the addition of new
ships.
Charter rates for the larger container ships
continued to improve and there is limited supply available for the
post -panamax sizes.
Over the quarter, we chartered in total 14
vessels benefiting from a rising rate environment.
We have 18 post -panamax ships coming off
charter over the next year which positions us favorably, should
market momentum continue.”
Financial
Summary
|
|
|
Nine-month period endedSeptember 30, |
|
Three-month period endedSeptember 30, |
(Expressed in thousands of
U.S. dollars, except share and per share data): |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
|
$274,244 |
|
|
$353,641 |
|
|
$90,913 |
|
|
$123,631 |
|
Accrued charter revenue
(1) |
|
$(5,031 |
) |
|
$(115 |
) |
|
$(1,464 |
) |
|
$(306 |
) |
Amortization of Time-charter
assumed |
|
|
- |
|
|
$143 |
|
|
|
- |
|
|
$48 |
|
Voyage revenue adjusted on a
cash basis (2) |
|
$269,213 |
|
|
$353,669 |
|
|
$89,449 |
|
|
$123,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available
to common stockholders (3) |
|
$33,598 |
|
|
$66,700 |
|
|
$9,763 |
|
|
$30,948 |
|
Weighted Average number of shares |
|
|
109,870,776 |
|
|
114,744,125 |
|
|
|
110,913,448 |
|
|
|
117,111,191 |
|
Adjusted Earnings per share
(3) |
|
$0.31 |
|
|
$0.58 |
|
|
$0.09 |
|
|
$0.26 |
|
|
|
|
|
|
|
|
|
Net Income |
|
$47,507 |
|
|
$63,112 |
|
|
$14,040 |
|
|
$35,976 |
|
Net Income available to common
stockholders |
|
$24,821 |
|
|
$39,660 |
|
|
$6,136 |
|
|
$28,072 |
|
Weighted Average number of
shares |
|
|
109,870,776 |
|
|
|
114,744,125 |
|
|
110,913,448 |
|
|
|
117,111,191 |
|
Earnings per share |
|
$0.23 |
|
|
$0.35 |
|
|
$0.06 |
|
|
$0.24 |
|
(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 and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis.(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 (“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 available to common stockholders and Adjusted Earnings per
Share are non-GAAP measures. Refer to the reconciliation of Net
Income to Adjusted Net Income.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. 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. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three- and nine-month periods ended
September 30, 2019 and 2018. Non-GAAP financial measures should be
viewed in addition to, and not as an alternative for, voyage
revenue or net income as determined in accordance with GAAP.
Non-GAAP financial measures include (i) Voyage revenue adjusted on
a cash basis (reconciled above), (ii) Adjusted Net Income available
to common stockholders and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
|
|
Nine-month period ended September
30, |
|
Three-month period ended September
30, |
(Expressed in thousands of
U.S. dollars, except share and per share data) |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
47,507 |
|
$ |
63,112 |
|
$ |
14,040 |
|
$ |
35,976 |
|
Earnings allocated to
Preferred Stock |
|
(22,686 |
) |
|
(23,452 |
) |
|
(7,904 |
) |
|
(7,904 |
) |
Net Income available
to common stockholders |
|
24,821 |
|
|
39,660 |
|
|
6,136 |
|
|
28,072 |
|
Accrued charter revenue |
|
(5,031 |
) |
|
(115 |
) |
|
(1,464 |
) |
|
(306 |
) |
General and administrative
expenses – non-cash component |
|
3,098 |
|
|
2,453 |
|
|
971 |
|
|
908 |
|
Non-recurring, non-cash
write-off of loan deferred financing costs |
|
- |
|
|
1,127 |
|
|
- |
|
|
1,127 |
|
Amortization of prepaid lease
rentals, net |
|
6,095 |
|
|
- |
|
|
2,054 |
|
|
- |
|
Amortization of Time charter
assumed |
|
- |
|
|
143 |
|
|
- |
|
|
48 |
|
Realized loss on Euro/USD
forward contracts (1) |
|
97 |
|
|
367 |
|
|
250 |
|
|
159 |
|
Vessels’ impairment loss |
|
- |
|
|
3,042 |
|
|
- |
|
|
- |
|
Loss on sale / disposal of
vessels |
|
861 |
|
|
18,420 |
|
|
- |
|
|
- |
|
Swaps’ breakage costs |
|
1,234 |
|
|
16 |
|
|
- |
|
|
16 |
|
Loss on vessels’ held for
sale |
|
1,919 |
|
|
480 |
|
|
1,919 |
|
|
480 |
|
Loss on sale / disposal of
vessel by a jointly owned company with York included in equity gain
on investments |
|
- |
|
|
38 |
|
|
- |
|
|
- |
|
(Gain) / Loss on asset held
for sale by a jointly owned company with York included in equity
gain on investments |
|
664 |
|
|
- |
|
|
(4 |
) |
|
- |
|
(Gain) / loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
(160 |
) |
|
1,069 |
|
|
(99 |
) |
|
444 |
|
Adjusted Net Income
available to common stockholders |
$ |
33,598 |
|
$ |
66,700 |
|
$ |
9,763 |
|
$ |
30,948 |
|
Adjusted Earnings per
Share |
$ |
0.31 |
|
$ |
0.58 |
|
$ |
0.09 |
|
$ |
0.26 |
|
Weighted average number of
shares |
|
109,870,776 |
|
|
114,744,125 |
|
|
110,913,448 |
|
|
117,111,191 |
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock, but before non-cash
“Accrued charter revenue” recorded under charters with escalating
charter rates, realized loss on Euro/USD forward contracts,
vessels’ impairment loss, loss on sale / disposal of vessels,
swaps’ breakage costs, loss on vessels held for sale, loss on sale
/ disposal of vessel by a jointly owned company with York included
in equity gain on investments, (gain) / loss on asset held for sale
by a jointly owned company with York included in equity gain on
investments, non-cash general and administrative expenses and
non-cash other items, non-recurring, non-cash write-off of loan
deferred financing costs, amortization of prepaid lease rentals,
net, amortization of Time charter assumed and non-cash changes in
fair value of derivatives. “Accrued charter revenue” is attributed
to the timing difference between the revenue recognition and the
cash collection. However, Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are not recognized
measurements under U.S. GAAP. We believe that the presentation of
Adjusted Net Income available to common stockholders 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 available to common
stockholders 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
available to common stockholders 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 available to common
stockholders 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 available to common stockholders
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 available to common stockholders 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.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Results of Operations
Three-month period ended September 30,
2019 compared to the three-month period ended September 30,
2018
During the three-month periods ended September
30, 2019 and 2018, we had an average of 60.0 and 55.8 vessels,
respectively, in our fleet. In the three-month period ended
September 30, 2018, we accepted delivery of the secondhand
containerships Megalopolis, Marathopolis, Maersk Kleven and Maersk
Kotka with an aggregate TEU capacity of 26,002. In the three-month
periods ended September 30, 2019 and 2018, our fleet ownership days
totaled 5,520 and 5,136 days, respectively. Ownership days are one
of the primary drivers 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.
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month periodended September 30, |
|
Change |
|
Percentage Change |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
90.9 |
|
$ |
123.6 |
|
$ |
32.7 |
|
|
36.0% |
|
Voyage expenses |
|
(1.9 |
) |
|
(0.7 |
) |
|
(1.2 |
) |
|
(63.2%) |
|
Voyage expenses – related
parties |
|
(0.8 |
) |
|
(1.7 |
) |
|
0.9 |
|
|
112.5% |
|
Vessels’ operating
expenses |
|
(27.4 |
) |
|
(29.2 |
) |
|
1.8 |
|
|
6.6% |
|
General and administrative
expenses |
|
(1.3 |
) |
|
(1.5 |
) |
|
0.2 |
|
|
15.4% |
|
Management fees – related
parties |
|
(5.0 |
) |
|
(5.3 |
) |
|
0.3 |
|
|
6.0% |
|
General and administrative
expenses - non-cash component |
|
(1.0 |
) |
|
(0.9 |
) |
|
(0.1 |
) |
|
(10.0%) |
|
Amortization of dry-docking
and special survey costs |
|
(1.8 |
) |
|
(2.3 |
) |
|
0.5 |
|
|
27.8% |
|
Depreciation |
|
(23.8 |
) |
|
(25.3 |
) |
|
1.5 |
|
|
6.3% |
|
Amortization of prepaid lease
rentals, net |
|
(2.0 |
) |
|
- |
|
|
(2.0 |
) |
|
n.m. |
|
Loss on vessels held for
sale |
|
(1.9 |
) |
|
(0.5 |
) |
|
(1.4 |
) |
|
(73.7%) |
|
Interest income |
|
0.8 |
|
|
0.8 |
|
|
- |
|
|
- |
|
Interest and finance
costs |
|
(14.9 |
) |
|
(24.0 |
) |
|
9.1 |
|
|
61.1% |
|
Swaps’ breakage costs |
|
- |
|
|
- |
|
|
|
|
|
Equity gain on
investments |
|
3.9 |
|
|
3.1 |
|
|
(0.8 |
) |
|
(20.5%) |
|
Other |
|
0.1 |
|
|
0.3 |
|
|
0.2 |
|
|
n.m. |
|
Gain / (Loss) on derivative
instruments |
|
0.1 |
|
|
(0.4 |
) |
|
(0.5 |
) |
|
n.m. |
|
Net
Income |
$ |
14.0 |
|
$ |
36.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month periodended September 30, |
|
Change |
|
Percentage Change |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
90.9 |
|
$ |
123.6 |
|
$ |
32.7 |
|
|
36.0 |
% |
Accrued charter revenue |
|
(1.5 |
) |
|
(0.3 |
) |
|
(1.2 |
) |
|
(80.0 |
%) |
Amortization of Time-charter
assumed |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Voyage revenue adjusted on a
cash basis (1) |
$ |
89.4 |
|
$ |
123.3 |
|
$ |
33.9 |
|
|
37.9 |
% |
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month periodended September 30, |
|
|
|
PercentageChange |
|
2018 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
55.8 |
|
60.0 |
|
4.2 |
|
|
7.5 |
% |
Ownership days |
|
5,136 |
|
5,520 |
|
384 |
|
|
7.5 |
% |
Number of vessels under
dry-docking |
|
4 |
|
- |
|
(4 |
) |
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles ("GAAP"). Refer to “Financial Summary” above
for the reconciliation of Voyage revenue adjusted on a cash
basis.
Voyage Revenue
Voyage revenue increased by 36.0%, or $32.7
million, to $123.6 million during the three-month period ended
September 30, 2019, from $90.9 million during the three-month
period ended September 30, 2018. The increase is mainly
attributable to revenue earned by (i) nine vessels acquired during
the six-month period ended December 31, 2018, (ii) decreased
off-hire days for certain of our vessels and increased charter
rates for certain of our vessels during the three-month period
ended September 30, 2019 compared to the three-month period ended
September 30, 2018; partly offset by revenue not earned by two
vessels sold in the first quarter of 2019.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), increased by 37.9%,
or $33.9 million, to $123.3 million during the three-month period
ended September 30, 2019, from $89.4 million during the three-month
period ended September 30, 2018. Accrued charter revenue for the
three-month periods ended September 30, 2019 and 2018 was a
negative amount of $0.3 million and $1.5 million, respectively.
Voyage Expenses
Voyage expenses were $0.7 million and $1.9
million for the three-month periods ended September 30, 2019 and
2018, respectively. Voyage expenses mainly include (i) off-hire
expenses of our vessels, primarily related to fuel consumption and
(ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $1.7
million and $0.8 million for the three-month periods ended
September 30, 2019 and 2018, respectively. Voyage expenses –
related parties represent (i) fees of 1.25% (0.75% until June 30,
2019) in the aggregate on voyage revenues charged by related
managers and (ii) charter brokerage fees payable to a related
charter brokerage company.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain / (loss) under derivative contracts entered into
in relation to foreign currency exposure, were $29.2 million and
$27.4 million during the three-month periods ended September 30,
2019 and 2018, respectively. Daily vessels’ operating expenses were
$5,282 and $5,332 for the three-month periods ended September 30,
2019 and 2018, respectively. Daily operating expenses are
calculated as vessels’ operating expenses for the period over the
ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $1.5
million and $1.3 million during the three-month periods ended
September 30, 2019 and 2018, respectively, and both include $0.63
million paid to a related manager.
Management Fees – related parties
Management fees paid to our related managers
were $5.3 million and $5.0 million during the three-month periods
ended September 30, 2019 and 2018, respectively.
General and administrative expenses – non-cash
component
General and administrative expenses – non-cash
component for the three-month period ended September 30, 2019
amounted to $0.9 million, representing the value of the shares
issued to a related manager on September 30, 2019. General and
administrative expenses – non-cash component for the three-month
period ended September 30, 2018 amounted to $1.0 million,
representing the value of the shares issued to a related manager on
September 28, 2018.
Amortization of dry-docking and special survey
Amortization of deferred dry-docking and special
survey costs was $2.3 million and $1.8 million during the
three-month periods ended September 30, 2019 and 2018,
respectively. During the three-month period ended September 30,
2018, two vessels underwent and completed their special survey and
two were in process of completing their special survey. During the
three-month period ended September 30, 2019, no vessel underwent
any special survey.
Depreciation
Depreciation expense for the three-month period
ended September 30, 2019 and 2018 was $25.3 million and $23.8
million, respectively. The increase was partly attributable to the
increased average number of vessels during the three-month period
ended September 30, 2019 compared to the three-month period ended
September 30, 2018.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net for
the three-month periods ended September 30, 2019 and 2018 was nil
and $2.0 million, respectively.
Loss on vessels held for sale
During the three-month period ended September
30, 2019, we recorded a loss on vessels held for sale of
$0.5 million representing the expected loss from sale of two
of our vessels during the next twelve-month period. During the
three-month period ended September 30, 2018, we recorded a loss on
vessel held for sale of $1.9 million representing the expected
loss from sale of one of our vessels during the next twelve-month
period.
Interest Income
Interest income amounted to $0.8 million for
each of the three-month periods ended September 30, 2019 and 2018,
respectively.
Interest and Finance Costs
Interest and finance costs were $24.0 million
and $14.9 million during the three-month periods ended September
30, 2019 and 2018, respectively. The increase is mainly
attributable to the increased average loan balance during the
three-month period ended September 30, 2019 compared to the
three-month period ended September 30, 2018.
Swaps’ Breakage Costs
During the three-month period ended September
30, 2019, we terminated eight interest rate derivative instruments
that qualified for hedge accounting and three that did not qualify
for hedge accounting and we paid the counterparties breakage costs,
net in the amount of $0.016 million in the aggregate.
Equity Gain on Investments
During the three-month period ended September
30, 2019, we recorded an equity gain on investments of $3.1 million
representing our share of the net gain in jointly owned companies
pursuant to the Framework Deed dated May 15, 2013, as amended and
restated (the “Framework Deed”), with York Capital Management
Global Advisors LLC and an affiliated fund (collectively, together
with the funds it manages or advises, “York”). Since November 12,
2018, we have held 100% of the equity interest in five previously
jointly owned companies with York, and as of that date these five
companies are consolidated in our consolidated financial
statements. As of September 30, 2019, 13 companies are jointly
owned with York. During the three-month period ended September 30,
2018, we recorded an equity gain on investments of $3.9 million
also relating to investments under the Framework Deed.
Gain / (Loss) on Derivative Instruments
The fair value of our four interest rate
derivative instruments which were outstanding as of September 30,
2019 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of September 30, 2019, the fair
value of these four interest rate derivative instruments in
aggregate amounted to a net asset of $0.1 million. The effective
portion of the change in the fair value of the interest rate
derivative instruments that qualified for hedge accounting is
recorded in “Other Comprehensive Income” (“OCI”) while the
ineffective portion is recorded in the consolidated statements of
income. The change in the fair value of the interest rate
derivative instruments that did not qualify for hedge accounting is
recorded in the consolidated statement of income. For the
three-month period ended September 30, 2019, a net loss of $0.4
million has been included in OCI and a net loss of $0.2 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, 2019.
Cash Flows
Three-month periods ended September 30, 2019 and
2018
Condensed cash
flows |
|
Three-month period endedSeptember 30, |
(Expressed in millions of U.S. dollars) |
|
2018 |
|
2019 |
Net Cash Provided by Operating Activities |
|
$38.8 |
|
|
$66.4 |
|
Net Cash Used in Investing
Activities |
|
$(48.6 |
) |
|
$(0.4 |
) |
Net Cash Provided by / (Used
in) Financing Activities |
|
$4.7 |
|
|
$(145.7 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended September 30, 2019 increased by
$27.6 million to $66.4 million, from $38.8 million for the
three-month period ended September 30, 2018. The increase is mainly
attributable to the increased cash from operations of $33.9
million, 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
$2.7 million and the decreased special survey costs of $3.5 million
during the three-month period ended September 30, 2019 compared to
the three-month period ended September 30, 2018; partly off-set by
increased payments for interest (including swap payments) during
the period of $5.2 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $0.4
million in the three-month period ended September 30, 2019, which
mainly consisted of dividend distributions we received from 10
entities jointly owned with York pursuant to the Framework Deed and
advance payments for upgrades for certain of our vessels.
Net cash used in investing activities was $48.6
million in the three-month period ended September 30, 2018, which
mainly consisted of net payments in relation to the acquisition of
four secondhand vessels and five newbuild vessels and payment for
capital injection into one entity pursuant to the Framework
Deed.
Net Cash Provided by / (Used in) Financing
Activities
Net cash used in financing activities was $145.7
million in the three-month period ended September 30, 2019, which
mainly consisted of (a) $128.4 million of net payments relating to
our debt financing agreements, (b) $7.0 million we paid for
dividends to holders of our common stock for the second quarter of
2019 and (c) $1.0 million we paid for dividends to holders of our
7.625% Series B Cumulative Redeemable Perpetual Preferred Stock
(“Series B Preferred Stock”), $2.1 million we paid for dividends to
holders of our 8.500% Series C Cumulative Redeemable Perpetual
Preferred Stock (“Series C Preferred Stock”), $2.2 million we paid
for dividends to holders of our 8.75% Series D Cumulative
Redeemable Perpetual Preferred Stock (“Series D Preferred Stock”)
and $2.5 million we paid for dividends to holders of our 8.875%
Series E Cumulative Redeemable Perpetual Preferred Stock (“Series E
Preferred Stock”) for the period from April 15, 2019 to July 14,
2019.
Net cash provided by financing activities was
$4.7 million in the three-month period ended September 30, 2018,
which mainly consisted of (a) $18.0 million net proceeds we
received relating to our debt financing agreements, (b) $4.9
million we paid for dividends to holders of our common stock for
the second quarter of 2018 and (c) $1.0 million we paid for
dividends to holders of our Series B Preferred Stock, $2.1 million
we paid for dividends to holders of our Series C Preferred Stock,
$2.2 million we paid for dividends to holders of our Series D
Preferred Stock and $2.5 million we paid for dividends to holders
of our Series E Preferred Stock for the period from April 15, 2018
to July 14, 2018.
Nine-month period ended September 30,
2019 compared to the nine-month period ended September 30,
2018
During the nine-month periods ended September
30, 2019 and 2018, we had an average of 60.6 and 54.4 vessels,
respectively, in our fleet. In the nine-month period ended
September 30, 2019, we sold the container vessels MSC Pylos and
Piraeus with an aggregate capacity of 7,012 TEU. In the nine-month
period ended September 30, 2018, we accepted delivery of the
secondhand containerships Michigan, Trader, Megalopolis,
Marathopolis, Maersk Kleven and Maersk Kotka with an aggregate
capacity of 28,602 TEU and we sold the container vessel Itea with a
capacity of 3,842 TEU. In the nine-month periods ended September
30, 2019 and 2018, our fleet ownership days totaled 16,555 and
14,854 days, respectively. Ownership days are one of the primary
drivers 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.
(Expressed in millions of U.S. dollars, except percentages) |
|
Nine-month period endedSeptember 30, |
|
Change |
|
Percentage Change |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
274.2 |
|
$ |
353.6 |
|
$ |
79.4 |
|
|
29.0% |
|
Voyage expenses |
|
(4.9 |
) |
|
(3.2 |
) |
|
(1.7 |
) |
|
(34.7%) |
|
Voyage expenses – related
parties |
|
(2.3 |
) |
|
(3.6 |
) |
|
1.3 |
|
|
56.5% |
|
Vessels’ operating
expenses |
|
(80.2 |
) |
|
(87.3 |
) |
|
7.1 |
|
|
8.9% |
|
General and administrative
expenses |
|
(4.1 |
) |
|
(4.1 |
) |
|
- |
|
|
- |
|
Management fees – related
parties |
|
(14.5 |
) |
|
(16.2 |
) |
|
1.7 |
|
|
11.7% |
|
General and administrative
expenses - non-cash component |
|
(3.1 |
) |
|
(2.5 |
) |
|
(0.6 |
) |
|
(19.4%) |
|
Amortization of dry-docking
and special survey costs |
|
(5.2 |
) |
|
(6.7 |
) |
|
1.5 |
|
|
28.8% |
|
Depreciation |
|
(69.8 |
) |
|
(85.1 |
) |
|
15.3 |
|
|
21.9% |
|
Amortization of prepaid lease
rentals, net |
|
(6.1 |
) |
|
- |
|
|
(6.1 |
) |
|
n.m. |
|
Loss on sale / disposal of
vessels |
|
(0.9 |
) |
|
(18.4 |
) |
|
17.5 |
|
|
n.m. |
|
Loss on vessels held for
sale |
|
(1.9 |
) |
|
(0.5 |
) |
|
(1.4 |
) |
|
(73.7%) |
|
Vessels’ impairment loss |
|
- |
|
|
(3.0 |
) |
|
3.0 |
|
|
n.m. |
|
Interest income |
|
2.6 |
|
|
2.5 |
|
|
(0.1 |
) |
|
(3.8%) |
|
Interest and finance
costs |
|
(44.2 |
) |
|
(69.3 |
) |
|
25.1 |
|
|
56.8% |
|
Swaps’ breakage costs |
|
(1.2 |
) |
|
- |
|
|
(1.2 |
) |
|
n.m. |
|
Equity gain on
investments |
|
9.1 |
|
|
7.4 |
|
|
(1.7 |
) |
|
(18.7%) |
|
Other |
|
0.2 |
|
|
0.5 |
|
|
0.3 |
|
|
n.m. |
|
Loss on derivative
instruments |
|
(0.2 |
) |
|
(1.0 |
) |
|
0.8 |
|
|
n.m. |
|
Net
Income |
$ |
47.5 |
|
$ |
63.1 |
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Nine-month period endedSeptember 30, |
|
Change |
|
Percentage Change |
|
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
274.2 |
|
$ |
353.6 |
|
$ |
79.4 |
|
|
29.0% |
|
Accrued charter revenue |
|
(5.0 |
) |
|
(0.1 |
) |
|
(4.9 |
) |
|
(98.0%) |
|
Amortization of Time-charter assumed |
|
- |
|
|
0.2 |
|
|
0.2 |
|
|
n.m. |
|
Voyage revenue adjusted on a cash basis (1) |
$ |
269.2 |
|
$ |
353.7 |
|
$ |
84.5 |
|
|
31.4% |
|
|
|
|
|
|
|
|
|
|
Vessels’
operational data |
|
Nine-month period endedSeptember 30, |
|
|
|
PercentageChange |
|
2018 |
|
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
vessels |
54.4 |
|
|
60.6 |
|
|
6.2 |
|
|
11.4% |
|
Ownership days |
14,854 |
|
|
16,555 |
|
|
1,701 |
|
|
11.5% |
|
Number of vessels
under dry-docking |
15 |
|
|
6 |
|
|
(9 |
) |
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles ("GAAP"). Refer to “Financial Summary” above
for the reconciliation of Voyage revenue adjusted on a cash
basis.
Voyage Revenue
Voyage revenue increased by 29.0%, or $79.4
million, to $353.6 million during the nine-month period ended
September 30, 2019 from $274.2 million during the nine-month period
ended September 30, 2018. The increase is mainly attributable to
revenue earned by (i) nine vessels acquired during the six-month
period ended December 31, 2018 and (ii) decreased off-hire days for
certain of our vessels during the nine-month period ended September
30, 2019 compared to the nine-month period ended September 30,
2018; partly offset by decreased charter rates for certain of our
vessels and revenue not earned by two vessels sold in June and
October 2018 and two vessels sold in March 2019.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), increased by 31.4%,
or $84.5 million, to $353.7 million during the nine-month period
ended September 30, 2019 from $269.2 million during the nine-month
period ended September 30, 2018. Accrued charter revenue for the
nine-month periods ended September 30, 2019 and 2018 was a negative
amount of $0.1 million and $5.0 million, respectively.
Voyage Expenses
Voyage expenses were $3.2 million and $4.9
million for the nine-month periods ended September 30, 2019 and
2018, respectively. Voyage expenses mainly include (i) off-hire
expenses of our vessels, primarily related to fuel consumption and
(ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $3.6
million and $2.3 million for the nine-month periods ended September
30, 2019 and 2018, respectively. Voyage expenses – related parties
represent (i) fees of 1.25% (0.75% up to June 30, 2019) in the
aggregate on voyage revenues charged by related managers and (ii)
charter brokerage fees payable to a related charter brokerage
company.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain / (loss) under derivative contracts entered into
in relation to foreign currency exposure, were $87.3 million and
$80.2 million during the nine-month periods ended September 30,
2019 and 2018, respectively. Daily vessels’ operating expenses were
$5,275 and $5,401 for the nine-month periods ended September 30,
2019 and 2018, respectively. Daily vessels’ operating expenses are
calculated as vessels’ operating expenses for the period over the
ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $4.1
million for each of the nine-month periods ended September 30, 2019
and 2018, respectively, and both include $1.9 million which is part
of the annual fee paid to a related manager.
Management Fees – related parties
Management fees paid to our managers were $16.2
million and $14.5 million during the nine-month periods ended
September 30, 2019 and 2018, respectively.
General and administrative expenses – non-cash
component
General and administrative expenses – non-cash
component for the nine-month period ended September 30, 2019
amounted to $2.5 million representing the value of the shares
issued to a related manager on March 29, 2019, June 28, 2019 and
September 30, 2019. General and administrative expenses – non-cash
component for the nine-month period ended September 30, 2018
amounted to $3.1 million representing the value of the shares
issued to a related manager on March 30, 2018, June 29, 2018 and
September 28, 2018.
Amortization of Dry-docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $6.7 million and $5.2 million during the
nine-month periods ended September 30, 2019 and 2018, respectively.
During the nine-month period ended September 30, 2019, 6 vessels
underwent and completed their special survey. During the nine-month
period ended September 30, 2018, 13 vessels underwent and completed
their special survey and two were in process of completing their
special survey.
Depreciation
Depreciation expense for the nine-month period
ended September 30, 2019 and 2018 was $85.1 million and $69.8
million, respectively. The increase was partly attributable to the
increased average number of vessels during the nine-month period
ended September 30, 2019 compared to the nine-month period ended
September 30, 2018.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net for
the nine-month periods ended September 30, 2019 and 2018 was nil
and $6.1 million, respectively.
Loss on sale / disposal of vessels
During the nine-month period ended September 30,
2019, we recorded an aggregate loss of $18.4 million from the sale
of the container vessels Piraeus and MSC Pylos. MSC Pylos was
classified as asset held for sale as at December 31, 2018. During
the nine-month period ended September 30, 2018, we recorded a loss
of $0.9 million from the sale of the vessel Itea, which was
classified as Asset held for sale as at December 31, 2017.
Loss on vessels held for sale
During the nine-month period ended September 30,
2019, we recorded a loss on vessels held for sale of
$0.5 million representing the expected loss from sale of two
of our vessels during the next twelve-month period. During the
nine-month period ended September 30, 2018, we recorded a loss on
vessel held for sale of $1.9 million representing the expected
loss from sale of one of our vessels during the next twelve-month
period.
Vessels’ impairment loss
During the nine-month period ended September 30,
2019, we recorded an impairment loss in relation to two of our
vessels in the amount of $3.0 million, in the aggregate. During the
nine-month period ended September 30, 2018, no impairment loss was
recorded.
Interest Income
Interest income amounted to $2.5 million and
$2.6 million for the nine-month periods ended September 30, 2019
and 2018, respectively.
Interest and Finance Costs
Interest and finance costs were $69.3 million
and $44.2 million during the nine-month periods ended September 30,
2019 and 2018, respectively. The increase is mainly attributable to
the increased average loan balance during the nine-month period
ended September 30, 2019 compared to the nine-month period ended
September 30, 2018.
Swaps Breakage Cost
During the nine-month period ended September 30,
2019, we terminated eight interest rate derivative instruments that
qualified for hedge accounting and three that did not qualify for
hedge accounting and we paid the counterparties breakage costs, net
in the amount of $0.016 million in the aggregate. During the
nine-month period ended September 30, 2018, we terminated three
interest rate derivative instruments that qualified for hedge
accounting and we paid the counterparties’ breakage costs of $1.2
million.
Equity Gain on Investments
During the nine-month period ended September 30,
2019, we recorded an equity gain on investments of $7.4 million
representing our share of the net gain in jointly owned companies
pursuant to the Framework Deed. Since November 12, 2018, we have
held 100% of the equity interest in five previously jointly owned
companies with York, and as of that date these five companies are
consolidated in our consolidated financial statements. As of
September 30, 2019, 13 companies are jointly owned with York.
During the nine-month period ended September 30, 2018, we recorded
an equity gain on investments of $9.1 million also relating to
investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our four interest rate
derivative instruments which were outstanding as of September 30,
2019 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of September 30, 2019, the fair
value of these four interest rate derivative instruments in
aggregate amounted to a net asset of $0.1 million. The effective
portion of the change in the fair value of the interest rate
derivative instruments that qualified for hedge accounting is
recorded in OCI while the ineffective portion is recorded in the
consolidated statements of income. The change in the fair value of
the interest rate derivative instruments that did not qualify for
hedge accounting is recorded in the consolidated statement of
income. For the nine-month period ended September 30, 2019, a net
loss of $6.2 million has been included in OCI and a net loss of
$0.7 million has been included in 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, 2019.
Cash Flows
Nine-month periods ended September 30, 2019 and
2018
Condensed cash
flows |
|
Nine-month period endedSeptember 30, |
(Expressed in millions of U.S. dollars) |
|
|
2018 |
|
|
|
2019 |
|
Net Cash Provided by Operating
Activities |
|
$105.8 |
|
|
$173.6 |
|
Net Cash Provided by / (Used
in) Investing Activities |
|
$(113.5 |
) |
|
$8.9 |
|
Net Cash Used in Financing
Activities |
|
$(56.4 |
) |
|
$(144.8 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the nine-month period ended September 30, 2019 increased by
$67.8 million to $173.6 million, compared to $105.8 million for the
nine-month period ended September 30, 2018. The increase is mainly
attributable to the increased cash from operations of $84.5
million, 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
$7.7 million and the decreased special survey costs of $8.4 million
during the nine-month period ended September 30, 2019 compared to
the nine-month period ended September 30, 2018; partly off-set by
increased payments for interest (including swap payments) during
the period of $19.5 million. Net Cash Provided
by / (Used in) Investing Activities
Net cash provided by investing activities was
$8.9 million in the nine-month period ended September 30, 2019,
which mainly consisted of proceeds we received from the sale of two
vessels, dividend distribution we received from 11 entities jointly
owned with York pursuant to the Framework Deed and advance payments
for upgrades for certain of our vessels.
Net cash used in investing activities was $113.5
million in the nine-month period ended September 30, 2018, which
mainly consisted of net payments relating to the acquisition of six
secondhand vessels and five newbuild vessels, payments for capital
injection into certain entities pursuant to the Framework Deed and
proceeds we received from sale of one vessel.
Net Cash Used in Financing Activities
Net cash used in financing activities was $144.8
million in the nine-month period ended September 30, 2019, which
mainly consisted of (a) $97.1 million of net payments relating to
our debt financing agreements (including the prepayments following
the sale of two container vessels during the three-month period
ended March 31, 2019), (b) $20.4 million we paid for dividends to
holders of our common stock for the fourth quarter of 2018, the
first quarter of 2019 and the second quarter of 2019 and (c) $2.9
million we paid for dividends to holders of our Series B Preferred
Stock, $6.4 million we paid for dividends to holders of our Series
C Preferred Stock, $6.6 million we paid for dividends to holders of
our Series D Preferred Stock and $7.5 million we paid for dividends
to holders of our Series E Preferred Stock for the period from
October 15, 2018 to January 14, 2019, January 15, 2019 to April 14,
2019, and April 15, 2019 to July 14, 2019.
Net cash used in financing activities was $56.4
million in the nine-month period ended September 30, 2018, which
mainly consisted of (a) $130.2 million net payments relating to our
debt financing agreements, (b) $111.2 million net proceeds we
received from our public offering in January 2018, of 4.6 million
shares of our Series E Preferred Stock, net of underwriting
discounts and expenses incurred in the offering, (c) $14.1 million
we paid for dividends to holders of our common stock for the fourth
quarter of 2017, the first quarter of 2018 and the second quarter
of 2018 and (d) $2.9 million we paid for dividends to holders of
our Series B Preferred Stock, $6.4 million we paid for dividends to
holders of our Series C Preferred Stock, $6.6 million we paid for
dividends to holders of our Series D Preferred Stock, for the
periods from October 15, 2017 to January 14, 2018, January 15, 2018
to April 14, 2018, and April 15, 2018 to July 14, 2018, and $4.7
million we paid for dividends to holders of our Series E Preferred
Stock, for the period from January 30, 2018 to April 14, 2018 and
April 15, 2018 to July 14, 2018.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2019, we had a total cash
liquidity of $204.2 million, consisting of cash, cash equivalents
and restricted cash.
Debt-free vessels
As of October 23, 2019, the following vessels were free of
debt.
Unencumbered Vessels (Refer
to fleet list for full details)
Vessel Name |
|
Year Built |
|
TEU Capacity |
ETOILE (ex. CMA CGM ETOILE) |
|
2005 |
|
2,556 |
KOKURA |
|
1997 |
|
7,403 |
MICHIGAN |
|
2008 |
|
1,300 |
ENSENADA (*) |
|
2001 |
|
5,576 |
MONEMVASIA
(*) |
|
1998 |
|
2,472 |
ARKADIA (*) |
|
2001 |
|
1,550 |
(*) Vessels acquired pursuant to the Framework Deed with
York.
Conference Call details:
On Thursday, October 24, 2019 at 8:30 a.m. EST,
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:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until October 31, 2019. The United States replay number is
+1-877-344-7529; the standard international replay number is
+1-412-317-0088; and the access code required for the replay is:
10136189.
Live webcast:
There will also be a simultaneous live webcast
over the Internet, through the Costamare Inc. website
(www.costamare.com). 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
45 years of history in the international shipping industry and a
fleet of 75 containerships, with a total capacity of approximately
538,000 TEU, including five newbuild containerships currently under
construction. Ten of our containerships have been acquired pursuant
to the Framework Deed with York Capital Management by vessel-owning
joint venture entities in which we hold a minority equity interest.
The Company’s common stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock and Series E Preferred
Stock trade on the New York Stock Exchange under the symbols
“CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”,
respectively.
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”, “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 most recent Annual Report on Form 20-F (File No.
001-34934) under the caption “Risk Factors”.
Company Contacts:
Gregory Zikos - Chief Financial Officer Konstantinos Tsakalidis
- Business Development
Costamare Inc., Monaco Tel: (+377) 93 25 09 40Email:
ir@costamare.com
Fleet List
The table below provides additional information,
as of October 23, 2019, about our fleet of containerships,
including our newbuilds on order, the vessels acquired pursuant to
the Framework Deed and those vessels subject to sale and leaseback
agreements. Each vessel is a cellular containership, meaning it is
a dedicated container vessel.
|
Vessel Name |
Charterer |
YearBuilt |
Capacity(TEU) |
Current DailyCharter
Rate(1)(U.S. dollars) |
Expiration ofCharter(2) |
1 |
TRITON(ii) |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
6 |
CAPE AKRITAS(i) |
Evergreen/ZIM |
2016 |
11,010 |
39,500/43,250 |
August 2020 (3) |
7 |
CAPE TAINARO(i) |
ZIM |
2017 |
11,010 |
39,500 |
March 2020 |
8 |
CAPE KORTIA(i) |
Evergreen/ZIM |
2017 |
11,010 |
39,500/43,250 |
August 2020 (3) |
9 |
CAPE SOUNIO(i) |
ZIM |
2017 |
11,010 |
33,500 |
March 2020 |
10 |
CAPE ARTEMISIO(i) |
Hapag Lloyd |
2017 |
11,010 |
32,500 (net) |
March 2020 |
11 |
COSCO GUANGZHOU |
COSCO |
2006 |
9,469 |
28,900 |
April 2020 |
12 |
COSCO NINGBO |
COSCO |
2006 |
9,469 |
28,900 |
April 2020 |
13 |
COSCO YANTIAN |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
14 |
COSCO BEIJING |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
15 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
28,900 |
May 2020 |
16 |
MSC AZOV |
MSC |
2014 |
9,403 |
43,000 |
December 2026(4) |
17 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
43,000 |
February 2027(4) |
18 |
MSC AMALFI |
MSC |
2014 |
9,403 |
43,000 |
March 2027(4) |
19 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
42,000 |
January 2026(5) |
20 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
42,000 |
February 2026(5) |
21 |
VALOR |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
April 2023(6) |
22 |
VALUE |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
April 2023(6) |
23 |
VALIANT |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
June 2023(6) |
24 |
VALENCE |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
July 2023(6) |
25 |
VANTAGE |
Evergreen/Hapag Lloyd |
2013 |
8,827 |
41,700/34,500 |
September 2023(6) |
26 |
NAVARINO |
Evergreen |
2010 |
8,531 |
21,900 |
February 2020 |
27 |
MAERSK KLEVEN |
Maersk |
1996 |
8,044 |
17,500 |
April 2021 |
28 |
MAERSK KOTKA |
Maersk |
1996 |
8,044 |
17,500 |
April 2021 |
29 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
30 |
MAERSK KAWASAKI |
Maersk |
1997 |
7,403 |
17,050 |
February 2020 |
31 |
KURE |
COSCO |
1996 |
7,403 |
21,500 |
April 2020 |
32 |
KOKURA |
Maersk |
1997 |
7,403 |
17,050 |
February 2020 |
33 |
MSC METHONI |
MSC |
2003 |
6,724 |
29,000 |
September 2021 |
34 |
YORK |
MSC |
2000 |
6,648 |
11,450 |
December 2019 |
35 |
MAERSK KOBE |
Maersk |
2000 |
6,648 |
17,000 |
April 2020 |
36 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
(*) |
March 2022(7) |
37 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
(*) |
March 2022(7) |
38 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
(*) |
March 2022(7) |
39 |
MAERSK KOLKATA |
Maersk |
2003 |
6,644 |
26,100 |
March 2022(8) |
40 |
MAERSK KINGSTON |
Maersk |
2003 |
6,644 |
26,100 |
March 2022(8) |
41 |
MAERSK KALAMATA |
Maersk |
2003 |
6,644 |
26,100 |
March 2022(8) |
42 |
VENETIKO |
Hapag Lloyd |
2003 |
5,928 |
20,000 |
August 2020(9) |
43 |
ENSENADA (i) |
ONE |
2001 |
5,576 |
21,000 |
May 2020 |
44 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
12,430 |
October 2020(10) |
45 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
12,430 |
October 2020(10) |
46 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024 |
47 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024 |
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
(*) |
July 2025 |
49 |
MARATHOPOLIS |
Maersk |
2013 |
4.957 |
(*) |
July 2025 |
50 |
OAKLAND EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
10,000 |
November 2019 |
51 |
HALIFAX EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
10,000 |
October 2020 |
52 |
SINGAPORE EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
10,000 |
July 2020 |
53 |
ULSAN |
Maersk |
2002 |
4,132 |
12,000 |
June 2021 |
54 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024 |
55 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025 |
56 |
LAKONIA |
Evergreen |
2004 |
2,586 |
(*) |
March 2020 |
57 |
ETOILE (ex. CMA CGM ETOILE) |
- |
2005 |
2,556 |
- |
- |
58 |
AREOPOLIS |
Evergreen |
2000 |
2,474 |
(*) |
March 2020 |
59 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
60 |
MESSINI |
Evergreen |
1997 |
2,458 |
8,650 |
March 2020 |
61 |
REUNION (ex. MSC REUNION) |
- |
1992 |
2,024 |
- |
Vessel held for sale |
62 |
MSC NAMIBIA II |
MSC |
1991 |
2,023 |
8,000 |
November 2019 |
63 |
SIERRA II (ex. MSC SIERRA II) |
- |
1991 |
2,023 |
- |
Vessel scheduled to be sold |
64 |
NEAPOLIS |
Evergreen |
2000 |
1,645 |
8,000 |
January 2020 |
65 |
ARKADIA(i) |
Evergreen |
2001 |
1,550 |
9,450 |
February 2020 |
66 |
PROSPER |
Evergreen |
1996 |
1,504 |
7,100 |
February 2020 |
67 |
MICHIGAN |
MSC |
2008 |
1,300 |
6,650 |
September 2020 |
68 |
TRADER |
- |
2008 |
1,300 |
- |
- |
69 |
ZAGORA |
MSC |
1995 |
1,162 |
6,500 |
May 2020 |
70 |
LUEBECK |
MSC |
2001 |
1,078 |
6,200 |
January 2020 |
Newbuilds
|
Vessel Name |
Shipyard |
Capacity(TEU) |
Charterer |
Expected Delivery(11) |
1 |
YZJ2015-2057 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q2 2020 |
2 |
YZJ2015-2058 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q3 2020 |
3 |
YZJ2015-2059 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q3 2020 |
4 |
YZJ2015-2060 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q2 2021 |
5 |
YZJ2015-2061 |
Jiangsu YangzijiangShipbuilding Group |
12,690 |
Yang Ming |
Q2 2021 |
(1) |
Daily charter rates are gross, unless stated otherwise. Amounts set
out for current daily charter rate are the amounts contained in the
charter contracts. |
(2) |
Charter terms and expiration dates are based on the earliest date
charters could expire. |
(3) |
Upon redelivery of each vessel from Evergreen in October-November
2019, each vessel will commence a charter with ZIM at a daily rate
of $43,250. Until then the daily charter rate of each vessel will
be $39,500. |
(4) |
Following scrubbers’ installation, the daily rate will be increased
from the current daily rate of $43,000 until the original earliest
redelivery dates of the vessels (December 2, 2023-MSC Azov,
February 1, 2024-MSC Ajaccio and March 16, 2024-MSC Amalfi). The
charters will also be extended for 3 years. |
(5) |
Following scrubbers’ installation, the daily rate will be increased
from the current daily rate of $42,000 until the original earliest
redelivery dates of the vessels (January 29, 2023-MSC Athens and
February 24, 2023-MSC Athos). The charters will also be extended
for 3 years. |
(6) |
Upon redelivery of each vessel from Evergreen between April 2020
and January 2021, each vessel will commence a 3 year charter with
Hapag Lloyd at a daily rate of $34,500. Until then the daily
charter rate of each vessel will be $41,700. |
(7) |
The daily rate for Sealand Washington, Sealand Michigan and Sealand
Illinois is a base rate, adjusted pursuant to the terms of a
profit/loss sharing mechanism based on market conditions until
expiry of the charter. |
(8) |
This charter rate will be earned by Maersk Kolkata, Maersk Kingston
and Maersk Kalamata until November 14, 2019, February 28, 2020 and
April 12, 2020, respectively. From the aforementioned dates until
expiry of the charter, the daily rate for each of the three vessels
will be a base rate, adjusted pursuant to the terms of a
profit/loss sharing mechanism based on market conditions. |
(9) |
This charter rate will be earned by Venetiko from November 1, 2019.
Until then the daily charter rate will be $9,750. |
(10) |
The amounts in the table reflect the current charter terms, giving
effect to our agreement with ZIM under its 2014 restructuring plan.
Based on this agreement, we have been granted charter extensions
and have been issued equity securities representing 1.2% of ZIM’s
equity and approximately $8.2 million in interest bearing notes
maturing in 2023. In May 2019, the Company exercised its option to
extend the charters of ZIM New York and ZIM Shanghai for a one year
period at market rate plus $1,100 per day per vessel while the
notes remain outstanding. The rate for this fifth optional year has
been determined at $12,430 per day. |
(11) |
Based on latest shipyard construction schedule, subject to
change. |
|
|
(i) |
Denotes vessels acquired pursuant to the Framework Deed. The
Company holds an equity interest ranging between 25% and 49% in
each of the vessel-owning entities. |
(ii) |
Denotes vessels subject to a sale and leaseback transaction. |
|
|
(*) |
Denotes charterer’s identity and/or current daily charter rates
and/or charter expiration dates, which are treated as
confidential. |
COSTAMARE
INC.Consolidated Statements of Income
|
|
Nine-months endedSeptember 30, |
|
Three-months
endedSeptember
30, |
(Expressed in thousands of
U.S. dollars,except share and per share amounts) |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
274,244 |
|
$ |
353,641 |
|
$ |
90,913 |
|
$ |
123,631 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
(4,894 |
) |
|
(3,180 |
) |
|
(1,857 |
) |
|
(701 |
) |
Voyage expenses – related
parties |
|
(2,340 |
) |
|
(3,610 |
) |
|
(752 |
) |
|
(1,658 |
) |
Vessels' operating
expenses |
|
(80,226 |
) |
|
(87,322 |
) |
|
(27,384 |
) |
|
(29,158 |
) |
General and administrative
expenses |
|
(4,080 |
) |
|
(4,115 |
) |
|
(1,295 |
) |
|
(1,464 |
) |
Management fees – related
parties |
|
(14,549 |
) |
|
(16,164 |
) |
|
(4,998 |
) |
|
(5,337 |
) |
General and administrative
expenses – non-cash component |
|
(3,098 |
) |
|
(2,453 |
) |
|
(971 |
) |
|
(908 |
) |
Amortization of dry-docking
and special survey costs |
|
(5,183 |
) |
|
(6,737 |
) |
|
(1,825 |
) |
|
(2,266 |
) |
Depreciation |
|
(69,766 |
) |
|
(85,081 |
) |
|
(23,803 |
) |
|
(25,320 |
) |
Amortization of prepaid lease
rentals, net |
|
(6,095 |
) |
|
- |
|
|
(2,054 |
) |
|
- |
|
Loss on sale / disposal of
vessels |
|
(861 |
) |
|
(18,420 |
) |
|
- |
|
|
- |
|
Loss on vessels held for
sale |
|
(1,919 |
) |
|
(480 |
) |
|
(1,919 |
) |
|
(480 |
) |
Vessels’ impairment loss |
|
- |
|
|
(3,042 |
) |
|
- |
|
|
- |
|
Foreign exchange gains /
(losses) |
|
(16 |
) |
|
(28 |
) |
|
2 |
|
|
(45 |
) |
Operating
income |
$ |
81,217 |
|
$ |
123,009 |
|
$ |
24,057 |
|
$ |
56,294 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
/ (EXPENSES): |
|
|
|
|
|
|
|
|
Interest income |
$ |
2,634 |
|
$ |
2,512 |
|
$ |
756 |
|
$ |
826 |
|
Interest and finance
costs |
|
(44,248 |
) |
|
(69,342 |
) |
|
(14,870 |
) |
|
(24,026 |
) |
Swaps’ breakage cost, net |
|
(1,234 |
) |
|
(16 |
) |
|
- |
|
|
(16 |
) |
Equity gain on
investments |
|
9,114 |
|
|
7,409 |
|
|
3,915 |
|
|
3,110 |
|
Other |
|
231 |
|
|
561 |
|
|
136 |
|
|
234 |
|
Gain / (Loss) on derivative
instruments |
|
(207 |
) |
|
(1,021 |
) |
|
46 |
|
|
(446 |
) |
Total other
expenses |
$ |
(33,710 |
) |
$ |
(59,897 |
) |
$ |
(10,017 |
) |
$ |
(20,318 |
) |
Net
Income |
$ |
47,507 |
|
$ |
63,112 |
|
$ |
14,040 |
|
$ |
35,976 |
|
Earnings allocated to
Preferred Stock |
|
(22,686 |
) |
|
(23,452 |
) |
|
(7,904 |
) |
|
(7,904 |
) |
Net Income available
to common stockholders |
$ |
24,821 |
|
$ |
39,660 |
|
$ |
6,136 |
|
$ |
28,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share,
basic and diluted |
$ |
0.23 |
|
$ |
0.35 |
|
$ |
0.06 |
|
$ |
0.24 |
|
Weighted average number of
shares, basic and diluted |
|
109,870,776 |
|
|
114,744,125 |
|
|
110,913,448 |
|
|
117,111,191 |
|
COSTAMARE
INC.Consolidated Balance Sheets
|
|
As of December
31, |
|
As of September
30, |
(Expressed in thousands of U.S. dollars) |
|
2018 |
|
2019 |
ASSETS |
|
|
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
113,714 |
$ |
156,214 |
|
Restricted cash |
|
5,600 |
|
6,544 |
|
Accounts receivable |
|
5,625 |
|
11,729 |
|
Inventories |
|
11,020 |
|
9,790 |
|
Due from related parties |
|
4,681 |
|
5,006 |
|
Fair value of derivatives |
|
3,514 |
|
847 |
|
Insurance claims
receivable |
|
6,476 |
|
2,242 |
|
Prepaid lease rentals |
|
8,752 |
|
- |
|
Asset held for sale |
|
4,838 |
|
6,183 |
|
Time charter assumed |
|
190 |
|
192 |
|
Prepayments and other |
|
6,358 |
|
6,171 |
|
Total current
assets |
$ |
170,768 |
$ |
204,918 |
|
FIXED ASSETS,
NET: |
|
|
|
|
Right-of-use assets |
$ |
401,901 |
$ |
190,129 |
|
Vessels and advances, net |
|
2,206,786 |
|
2,410,324 |
|
Total fixed assets,
net |
$ |
2,608,687 |
$ |
2,600,453 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method investments |
$ |
131,082 |
$ |
123,737 |
|
Prepaid lease rentals,
non-current |
|
34,167 |
|
- |
|
Deferred charges, net |
|
26,250 |
|
24,194 |
|
Accounts receivable,
non-current |
|
17,789 |
|
9,990 |
|
Restricted cash |
|
47,177 |
|
41,450 |
|
Fair value of derivatives,
non-current |
|
3,727 |
|
266 |
|
Time charter assumed,
non-current |
|
1,222 |
|
1,078 |
|
Other non-current assets |
|
9,942 |
|
10,372 |
|
Total
assets |
$ |
3,050,811 |
$ |
3,016,458 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt |
$ |
149,162 |
$ |
198,441 |
|
Accounts payable |
|
8,586 |
|
5,965 |
|
Due to related parties |
|
196 |
|
437 |
|
Finance lease liabilities |
|
34,299 |
|
16,757 |
|
Accrued liabilities |
|
17,624 |
|
17,269 |
|
Unearned revenue |
|
12,432 |
|
10,380 |
|
Fair value of derivatives |
|
- |
|
628 |
|
Other current liabilities |
|
2,370 |
|
2,097 |
|
Total current
liabilities |
$ |
224,669 |
$ |
251,974 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of current
portion |
$ |
1,159,244 |
$ |
1,248,719 |
|
Finance lease liabilities, net
of current portion |
|
305,033 |
|
124,145 |
|
Fair value of derivatives, net
of current portion |
|
- |
|
631 |
|
Unearned revenue, net of
current portion |
|
4,741 |
|
3,154 |
|
Total non-current
liabilities |
$ |
1,469,018 |
$ |
1,376,649 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
$ |
- |
|
Common stock |
|
11 |
|
12 |
|
Additional paid-in
capital |
|
1,313,840 |
|
1,345,064 |
|
Retained earnings |
|
38,734 |
|
44,341 |
|
Accumulated other
comprehensive income / (loss) |
|
4,539 |
|
(1,582 |
) |
Total stockholders’
equity |
$ |
1,357,124 |
$ |
1,387,835 |
|
Total liabilities and
stockholders’ equity |
$ |
3,050,811 |
$ |
3,016,458 |
|
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