ATHENS, GREECE--(Marketwired - Jul 24, 2013) - Costamare Inc. ("Costamare" or the "Company") (
- Voyage revenues of $100.0 million and $191.6 million for the three and the six months ended June 30, 2013, respectively.
- Voyage revenues adjusted on a cash basis of $103.3 million and $198.2 million for the three and the six months ended June 30, 2013, respectively.
- Adjusted EBITDA of $67.6 million and $128.9 million for the three and the six months ended June 30, 2013, respectively.
- Net income of $30.6 million or $0.41 per share and $55.3 million or $0.74 per share for the three and the six months ended June 30, 2013, respectively.
- Adjusted net income of $27.7 million or $0.37 per share and $49.6 million or $0.66 per share for the three and six months ended June 30, 2013, respectively.
New Business Developments
- On June 3 and June 25, 2013, the Company took delivery of the 8,827 TEU newbuild containership vessels Valor and Value, which were both built by Sungdong Shipbuilding and Marine Engineering in South Korea. Upon delivery, both vessels commenced their long term charters with members of the Evergreen Group ("Evergreen").
- Pursuant to the Framework Agreement with York Capital Management ("York") we acquired three secondhand vessels which were subsequently chartered. The Company holds a 49% equity percentage in each of the three vessel entities. The details of the vessels and their respective charters are the following:
- The 2001-built, 5,576 TEU containership Ensenada Express was purchased for a price of $22.1 million and subsequently chartered to Hapag-Lloyd, for a period of approximately two years at a daily rate of $19,000. The vessel was delivered to its charterers on July 7, 2013.
- The 1998-built, 1,645 TEU containership X-Press Padma was purchased for a price of $4.75 million and subsequently chartered to Sea Consortium, for a period of approximately two years at an average daily rate of approximately $7,900. The vessel is expected to be delivered to its charterers on July 27, 2013.
- The 1994-built, 1,162 TEU containership Petalidi was purchased for a price of $2.8 million and subsequently chartered to CMA CGM, for a period of approximately one year at a daily rate of $6,300. The vessel was delivered to its charterers on July 4, 2013.
- The 2001-built, 5,576 TEU containership Ensenada Express was purchased for a price of $22.1 million and subsequently chartered to Hapag-Lloyd, for a period of approximately two years at a daily rate of $19,000. The vessel was delivered to its charterers on July 7, 2013.
- Entered into an agreement to extend the charter of the 1991-built, 3,351 TEU containership Karmen to Seacon, for a period of a minimum of two months and a maximum of five months at a daily rate of $6,750. The extension period commenced on June 15, 2013.
- Entered into an agreement to extend the charter of the 1992-built, 3,351 TEU containership Marina to Evergreen, for a period of a minimum of eight months and a maximum of 14 months at a daily rate of $7,000. The extension period commenced on June 12, 2013.
- Entered into an agreement to extend the charter of the 2001-built, 1,078 TEU containership Stadt Luebeck to CMA CGM, for a period of approximately 12 months at a daily rate of $6,400. The extension period will commence on August 23, 2013. The charterer also has the option to unilaterally extend the charter for an additional period of six months at a daily rate of $8,500.
Dividend Announcements
- On July 10, 2013, the Company declared a dividend for the second quarter ended June 30, 2013, of $0.27 per share, payable on August 7, 2013 to stockholders of record at the close of trading of the Company's common stock on the New York Stock Exchange on July 24, 2013. This will be the Company's eleventh consecutive quarterly dividend since it commenced trading on the New York Stock Exchange.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"During the second quarter of the year, the Company delivered positive results.
In accordance with our newbuilding program, we accepted delivery of the third and fourth 9,000 TEU newbuild containership vessels out of a series of ten. Both vessels commenced their charters with Evergreen. This addition to the fleet, together with the new buildings already delivered and the remaining six vessels currently on order and subject to charters, will contribute in excess of $1.3 billion of contracted revenues throughout the duration of their charters.
Regarding new transactions, the Company and York jointly bought three secondhand ships on a charter free basis. All three ships were subsequently chartered for periods ranging between 12 to 24 months at rates yielding attractive returns with potential upside because the acquisition cost was either close to scrap value or at historically low levels, which significantly reduces or eliminates residual value risk.
Regarding the chartering of existing vessels, the Company has no ships laid up. We recently entered into agreements to charter the 1991- and 1992-built, 3,351 TEU containership vessels Karmen and Marina to Seacon and Evergreen, respectively, as well as the 2001-built 1,078 TEU containership vessel Stadt Luebeck to CMA CGM.
Despite challenging market conditions, we have minimized our re-chartering risk. The charters for the vessels opening in 2013 and 2014 account for approximately 4% of our 2013 and 2014 contracted revenues.
Finally, on July 10, 2013, we declared a dividend for the second quarter of $0.27 per share. Consistent with our dividend policy, we continue to offer an attractive dividend, which we consider to be sustainable based on the size of our contracted cash flows, the quality of our charterers and the prudent amortization of our debt."
Financial Summary | ||||||||||||
Six-month period ended June 30, | Three-month period ended June 30, | |||||||||||
(Expressed in thousands of U.S. dollars, except share and per share data) | 2012 | 2013 | 2012 | 2013 | ||||||||
Voyage revenue | $ | 196,076 | $ | 191,566 | $ | 96,045 | $ | 100,030 | ||||
Accrued charter revenue (1) | $ | 985 | $ | 6,634 | $ | 480 | $ | 3,342 | ||||
Voyage revenue adjusted on a cash basis (2) | $ | 197,061 | $ | 198,200 | $ | 96,525 | $ | 103,372 | ||||
Adjusted EBITDA (3) | $ | 128,112 | $ | 128,852 | $ | 61,017 | $ | 67,626 | ||||
Adjusted Net Income (3) | $ | 46,774 | $ | 49,635 | $ | 21,596 | $ | 27,696 | ||||
Weighted average number of shares | 64,462,088 | 74,800,000 | 67,800,000 | 74,800,000 | ||||||||
Adjusted earnings per share (3) | $ | 0.73 | $ | 0.66 | $ | 0.32 | $ | 0.37 | ||||
EBITDA (3) | $ | 127,019 | $ | 134,508 | $ | 60,568 | $ | 70,486 | ||||
Net Income | $ | 45,681 | $ | 55,291 | $ | 21,147 | $ | 30,556 | ||||
Weighted average number of shares | 64,462,088 | 74,800,000 | 67,800,000 | 74,800,000 | ||||||||
Earnings per share | $ | 0.71 | $ | 0.74 | $ | 0.31 | $ | 0.41 | ||||
(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, 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" provided in the financial report for the second quarter and the six-month period ended June 30, 2013.
(3) Adjusted net income, adjusted earnings per share, EBITDA and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and net income to EBITDA and adjusted EBITDA below.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the six-month and three-month periods ended June 30, 2013 and June 30, 2012. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income, (iii) Adjusted earnings per share, (iv) EBITDA and (v) Adjusted EBITDA.
Reconciliation of Net Income to Adjusted Net Income | ||||||||||||||||
Six-month period ended June 30, | Three-month period ended June 30, | |||||||||||||||
(Expressed in thousands of U.S. dollars, except share and per share data) | 2012 | 2013 | 2012 | 2013 | ||||||||||||
Net Income | $ | 45,681 | $ | 55,291 | $ | 21,147 | $ | 30,556 | ||||||||
Accrued charter revenue | 985 | 6,634 | 480 | 3,342 | ||||||||||||
Gain on sale/disposal of vessels | (1,303 | ) | (6,460 | ) | (4,104 | ) | (3,551 | ) | ||||||||
Realized (gain)/ loss on Euro/USD forward contracts | 732 | (370 | ) | 364 | (180 | ) | ||||||||||
(Gain)/ loss on derivative instruments | 679 | (5,460 | ) | 3,709 | (2,471 | ) | ||||||||||
Adjusted Net Income | $ | 46,774 | $ | 49,635 | $ | 21,596 | $ | 27,696 | ||||||||
Adjusted Earnings per Share | $ | 0.73 | $ | 0.66 | $ | 0.32 | $ | 0.37 | ||||||||
Weighted average number of shares | 64,462,088 | 74,800,000 | 67,800,000 | 74,800,000 | ||||||||||||
Adjusted Net Income and Adjusted Earnings per Share represent net income before non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, gain/(loss) on sale of vessels, realized (gain)/loss on Euro/USD forward contracts 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 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 |
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Six-month period ended June 30, | Three-month period ended June 30, | |||||||||||||||
(Expressed in thousands of U.S. dollars) | 2012 | 2013 | 2012 | 2013 | ||||||||||||
Net Income | $ | 45,681 | $ | 55,291 | $ | 21,147 | $ | 30,556 | ||||||||
Interest and finance costs | 38,237 | 34,108 | 17,997 | 16,544 | ||||||||||||
Interest income | (716 | ) | (409 | ) | (432 | ) | (200 | ) | ||||||||
Depreciation | 39,881 | 41,489 | 19,868 | 21,607 | ||||||||||||
Amortization of dry-docking and special survey costs | 3,936 | 4,029 | 1,988 | 1,979 | ||||||||||||
EBITDA | 127,019 | 134,508 | 60,568 | 70,486 | ||||||||||||
Accrued charter revenue | 985 | 6,634 | 480 | 3,342 | ||||||||||||
Gain on sale/disposal of vessels | (1,303 | ) | (6,460 | ) | (4,104 | ) | (3,551 | ) | ||||||||
Realized (gain)/ loss on Euro/USD forward contracts | 732 | (370 | ) | 364 | (180 | ) | ||||||||||
Gain/ (loss) on derivative instruments | 679 | (5,460 | ) | 3,709 | (2,471 | ) | ||||||||||
Adjusted EBITDA | $ | 128,112 | $ | 128,852 | $ | 61,017 | $ | 67,626 | ||||||||
EBITDA represents net income before interest and finance costs, interest income, depreciation and amortization of deferred dry-docking and special survey costs. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, amortization of deferred dry-docking and special survey costs, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, gain/(loss) on sale of vessels, realized (gain)/loss on Euro/USD forward contracts and non-cash changes in fair value of derivatives. "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.
Financial Report
Results of Operation
Three-month period ended June 30, 2013 compared to the three-month period ended June 30, 2012
During the three-month periods ended June 30, 2013 and 2012, we had an average of 49.0 and 46.4 vessels, respectively, in our fleet. In the three-month period ended June 30, 2013, we accepted delivery of the newbuild vessels MSC Athos, Valor and Value with an aggregate TEU capacity of 26,481 and the secondhand vessels Petalidi and Ensenada Express with an aggregate TEU capacity of 6,738, which were acquired pursuant to the Framework Agreement with York, and we sold the vessel MSC Austria, with a TEU capacity of 3,584. In the three-month period ended June 30, 2012, we accepted delivery of the secondhand vessels Koroni and Kyparissia with an aggregate TEU capacity of 7,684, and we sold two secondhand vessels for scrap with an aggregate TEU capacity of 5,844. In the three-month periods ended June 30, 2013 and 2012, our fleet ownership days totaled 4,456 and 4,225 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.
(Expressed in millions of U.S. dollars, except percentages) |
Three-month period ended June 30, | ||||||||||||||
2012 | 2013 | Change | Percentage Change |
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Voyage revenue | $ | 96.0 | $ | 100.0 | $ | 4.0 | 4.2 | % | |||||||
Voyage expenses | (1.6 | ) | (1.2 | ) | (0.4 | ) | (25.0 | %) | |||||||
Voyage expenses - related parties | (0.7 | ) | (0.8 | ) | 0.1 | 14.3 | % | ||||||||
Vessels operating expenses | (28.7 | ) | (28.5 | ) | ( 0.2 | ) | (0.7 | %) | |||||||
General and administrative expenses | (1.2 | ) | (1.3 | ) | 0.1 | 8.3 | % | ||||||||
Management fees - related parties | (3.8 | ) | (4.1 | ) | 0.3 | 7.9 | % | ||||||||
Amortization of dry-docking and special survey costs | (2.0 | ) | (2.0 | ) | - | - | |||||||||
Depreciation | (19.9 | ) | (21.6 | ) | 1.7 | 8.5 | % | ||||||||
Gain on sale/disposal of vessels | 4.1 | 3.6 | (0.5 | ) | (12.2 | %) | |||||||||
Foreign exchange gains | 0.2 | - | (0.2 | ) | (100.0 | %) | |||||||||
Interest income | 0.4 | 0.2 | (0.2 | ) | (50.0 | %) | |||||||||
Interest and finance costs | (18.0 | ) | (16.4 | ) | (1.6 | ) | (8.9 | %) | |||||||
Other | - | 0.2 | 0.2 | 100.0 | % | ||||||||||
Gain /(loss) on derivative instruments | (3.7 | ) | 2.5 | 6.2 | 167.6 | % | |||||||||
Net Income | $ | 21.1 | $ | 30.6 | |||||||||||
(Expressed in millions of U.S. dollars, except percentages) |
Three-month period ended June 30, | |||||||||||
2012 | 2013 | Change | Percentage Change | |||||||||
Voyage revenue | $ | 96.0 | $ | 100.0 | $ | 4.0 | 4.2 | % | ||||
Accrued charter revenue | 0.5 | 3.3 | 2.8 | 560.0 | % | |||||||
Voyage revenue adjusted on a cash basis | $ | 96.5 | $ | 103.3 | $ | 6.8 | 7.0 | % | ||||
Fleet operational data | Three-month period ended June 30, | ||||||||
2012 | 2013 | Change | Percentage Change |
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Average number of vessels | 46.4 | 49.0 | 2.6 | 5.6 | % | ||||
Ownership days | 4,225 | 4,456 | 231 | 5.5 | % | ||||
Number of vessels under dry-docking | - | 3 | 3 | ||||||
Voyage Revenue
Voyage revenue increased by 4.2%, or $4.0 million, to $100.0 million during the three-month period ended June 30, 2013, from $96.0 million during the three-month period ended June 30, 2012. This increase is mainly due to revenue earned by the newbuild vessels delivered to us during the quarter ended June 30, 2013, partly offset by (i) decreased charter rates for certain of our vessels during the three-month period ended June 30, 2013, compared to the three-month period ended June 30, 2012, and (ii) revenues not earned by vessels which were sold for scrap after the first quarter of 2012 up to June 30, 2013. Voyage revenues adjusted on a cash basis (which adjusts for non-cash "Accrued charter revenue"), increased by 7.0%, or $6.8 million, to $103.3 million during the three-month period ended June 30, 2013, from $96.5 million during the three-month period ended June 30, 2012. The increase is mainly attributable to cash revenues earned by the new build vessels delivered to us during the quarter ended June 30, 2013, partly offset by the decreased charter rates in certain of our vessels during the three-month period ended June 30, 2013, compared to the three-month period ended June 30, 2012.
Voyage Expenses
Voyage expenses decreased by 25.0% or $0.4 million, to $1.2 million during the three-month period ended June 30, 2013, from $1.6 million during the three-month period ended June 30, 2012. Voyage expenses mainly include (i) fuel consumed during off-hire periods of our vessels and (ii) third party commissions.
Voyage Expenses - related parties
Voyage expenses -- related parties in the amount of $0.8 million during the three-month period ended June 30, 2013 and in the amount of $0.7 million during the three-month period ended June 30, 2012, represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized gain/ (loss) under derivative contracts entered into in relation to foreign currency exposure, decreased by 0.7%, or $0.2 million, to $28.5 million during the three-month period ended June 30, 2013, from $28.7 million during the three-month period ended June 30, 2012.
General and Administrative Expenses
General and administrative expenses increased by 8.3% or $0.1 million, to $1.3 million during the three-month period ended June 30, 2013 from $1.2 million during the three-month period ended June 30, 2012. General and administrative expenses for the three-month periods ended June 30, 2013 and 2012, include $0.25 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 group management agreement.
Management Fees - related parties
Management fees paid to our managers increased by 7.9%, or $0.3 million, to $4.1 million during the three-month period ended June 30, 2013, from $3.8 million during the three-month period ended June 30, 2012. The increase was primarily attributable to (i) the inflation related upward adjustment of the management fee by 4% for each vessel (effective January 1, 2013), as provided under our group management agreement and (ii) the increased average number of vessels during the three-month period ended June 30, 2013 compared to the three-month period ended June 30, 2012.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $2.0 million for the three-month period ended June 30, 2013 and $2.0 million for the three-month period ended June 30, 2012. During the three-month periods ended June 30, 2013 and 2012, three vessels and no vessel, respectively, underwent their special survey. During the three-month period ended June 30, 2013, two vessels completed its respective works and one was in process.
Depreciation
Depreciation expense increased by 8.5%, or $1.7 million, to $21.6 million during the three-month period ended June 30, 2013, from $19.9 million during the three-month period ended June 30, 2012. The increase was mainly attributable to the depreciation expense charged for the four newbuild vessels delivered to us during the six-month period ended June 30, 2013.
Gain on Sale/Disposal of Vessels
During the three-month period ended June 30, 2013, we recorded a gain of $3.6 million from the sale of one vessel. During the three-month period ended June 30, 2012, we recorded a gain of $4.1 million from the sale of two vessels.
Foreign Exchange Gains
Foreign exchange gains/ (losses) were $0 during the three-month period ended June 30, 2013 and foreign exchange gains were $0.2 million during the three-month period ended June 30, 2012.
Interest Income
Interest income decreased by 50.0% or $0.2 million, to $0.2 million during the three-month periods ended June 30, 2013, from $0.4 million during the three-month period ended June 30, 2012. The decrease is mainly attributable to the decreased average cash balance during the three-month period ended June 30, 2013, compared to the three-month period ended June 30, 2012.
Interest and Finance Costs
Interest and finance costs decreased by 8.9%, or $1.6 million, to $16.4 million during the three-month period ended June 30, 2013, from $18.0 million during the three-month period ended June 30, 2012. The decrease is partly attributable to the capitalized interest in relation with our newbuilding program and by the decreased commitment fees charged to us.
Gain / Loss on Derivative Instruments
The fair value of our 28 interest rate derivative instruments which were outstanding as of June 30, 2013, equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2013, the fair value of these 28 interest rate derivative instruments in aggregate amounted to a liability of $117.9 million. Twenty-seven of the 28 interest rate derivative instruments that were outstanding as at June 30, 2013, qualified for hedge accounting and the effective portion of the change in their fair value is recorded in "Comprehensive loss". For the three-month period ended June 30, 2013, a net gain of $45.0 million has been included in "Comprehensive loss" and a gain of $2.4 million has been included in "Gain (loss) on derivative instruments" in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended June 30, 2013.
Cash Flows
Three-month periods ended June 30, 2013 and 2012 | ||||||||
Condensed cash flows | Three-month period ended June 30, | |||||||
(Expressed in millions of U.S. dollars) | 2012 | 2013 | ||||||
Net Cash Provided by Operating Activities | $ | 48.6 | $ | 43.2 | ||||
Net Cash Used in Investing Activities | $ | (62.3 | ) | $ | (215.4 | ) | ||
Net Cash Provided by (Used in) Financing Activities | $ | (18.3 | ) | $ | 101.7 | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended June 30, 2013, decreased by $5.4 million to $43.2 million, compared to $48.6 million for the three-month period ended June 30, 2012. The decrease was primarily attributable to unfavorable 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 $13.3 million, partly offset by increased cash from operations of $6.8 million due to cash generated from the charters of the four newbuild vessels delivered to us during the six-month period ended June 30, 2013.
Net Cash Used in Investing Activities
Net cash used in investing activities was $ 215.4 million in the three-month period ended June 30, 2013, which consists of (a) $194.8 million advance and delivery payments for the construction and purchase of five newbuild vessels, (b) $24.9 million in payments for the acquisition of two secondhand vessels, (c) $0.5 million advance payment we made for the acquisition of one secondhand vessel which was delivered to us on July 3, 2013 and (d) $4.8 million balance payment we received from sale for scrap of one vessel, as part of the payment was received during the three-month period ended March 31, 2013.
Net cash used in investing activities was $62.3 million in the three-month period ended June 30, 2012, which consists of (a) $49.0 million advance payments for the construction and purchase of five newbuild vessels, (b) $24.9 million in payments for the acquisition of two secondhand vessels and (c) $11.6 million we received from the sale of two vessels.
Net Cash Provided By (Used In) Financing Activities
Net cash provided by financing activities was $101.7 million in the three-month period ended June 30, 2013, which mainly consists of (a) $37.9 million of indebtedness that we repaid, (b) $164.0 million we drew down from three of our credit facilities and (c) $20.2 million we paid for dividends to our stockholders for the first quarter of the year 2013.
Net cash used in financing activities was $18.3 million in the three-month period ended June 30, 2012, which mainly consists of (a) $43.8 million of indebtedness that we repaid, (b) $51.2 million we drew down from four of our credit facilities and (c) $18.3 million we paid for dividends to our stockholders for the first quarter of the year 2012.
Results of Operations
Six-month period ended June 30, 2013 compared to the six-month period ended June 30, 2012
During the six-month periods ended June 30, 2013 and 2012, we had an average of 47.9 and 46.4 vessels, respectively, in our fleet. In the six-month period ended June 30, 2013, we accepted delivery of the newbuild vessels MSC Athens, MSC Athos, Valor and Value with an aggregate TEU capacity of 35,308, the secondhand vessel Venetiko with a TEU capacity of 5,928, and the vessels Petalidi and Ensenada Express with an aggregate TEU capacity of 6,738 (these two secondhand vessels were acquired pursuant to the Framework Agreement with York) and we sold two vessels MSC Washington and MSC Austria with an aggregate TEU capacity of 7,460. In the six-month period ended June 30, 2012, we accepted delivery of three secondhand vessels MSC Ulsan, Koroni and Kyparissia with an aggregate TEU capacity of 11,816 and we sold three vessels Gather, Gifted and Genius I with an aggregate TEU capacity of 8,766. In the six-month periods ended June 30, 2013 and 2012, our fleet ownership days totaled 8,677 and 8,452 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.
(Expressed in millions of U.S. dollars, except percentages) |
Six-month period ended June 30, | ||||||||||||||
2012 | 2013 | Change | Percentage Change | ||||||||||||
Voyage revenue | $ | 196.1 | 191.6 | $ | (4.5 | ) | (2.3 | %) | |||||||
Voyage expenses | (2.3 | ) | (1.9 | ) | (0.4 | ) | (17.4 | %) | |||||||
Voyage expenses - related parties | (1.5 | ) | (1.4 | ) | (0.1 | ) | (6.7 | %) | |||||||
Vessels operating expenses | (56.4 | ) | (56.4 | ) | - | - | |||||||||
General and administrative expenses | (2.1 | ) | (2.2 | ) | 0.1 | 4.8 | % | ||||||||
Management fees - related parties | (7.6 | ) | (8.0 | ) | 0.4 | 5.3 | % | ||||||||
Amortization of dry-docking and special survey costs | (3.9 | ) | (4.0 | ) | 0.1 | 2.6 | % | ||||||||
Depreciation | (39.9 | ) | (41.5 | ) | 1.6 | 4.0 | % | ||||||||
Gain on sale/disposal of vessels | 1.3 | 6.4 | 5.1 | 392.3 | % | ||||||||||
Foreign exchange gains | 0.3 | 0.1 | (0.2 | ) | (66.7 | %) | |||||||||
Interest income | 0.7 | 0.4 | (0.3 | ) | (42.9 | %) | |||||||||
Interest and finance costs | (38.2 | ) | (34.1 | ) | (4.1 | ) | (10.7 | %) | |||||||
Other | (0.1 | ) | 0.8 | 0.9 | 900.0 | % | |||||||||
Gain /(loss) on derivative instruments | (0.7 | ) | 5.5 | 6.2 | 885.7 | % | |||||||||
Net Income | $ | 45.7 | $ | 55.3 | |||||||||||
(Expressed in millions of U.S. dollars, except percentages) |
Six-month period ended June 30, | ||||||||||||
2012 | 2013 | Change | Percentage Change | ||||||||||
Voyage revenue | $ | 196.1 | $ | 191.6 | $ | (4.5 | ) | (2.3 | %) | ||||
Accrued charter revenue | 1.0 | 6.6 | 5.6 | 560.0 | % | ||||||||
Voyage revenue adjusted on a cash basis | $ | 197.1 | $ | 198.2 | $ | 1.1 | 0.6 | % | |||||
Fleet operational data | Six-month period ended June 30, | ||||||||
2012 | 2013 | Change | Percentage Change |
||||||
Average number of vessels | 46.4 | 47.9 | 1.5 | 3.2 | % | ||||
Ownership days | 8,452 | 8,677 | 225 | 2.7 | % | ||||
Number of vessels under dry-docking | 2 | 5 | 3 | ||||||
Voyage Revenue
Voyage revenue decreased by 2.3%, or $4.5 million, to $191.6 million during the six-month period ended June 30, 2013, from $196.1 million during the six-month period ended June 30, 2012. The decrease in Voyage revenue is mainly due to (i) voyage revenue not earned from vessels disposed during the six-month period ended December 31, 2012 and the six-month period ended June 30, 2013, which were employed during the six-month period ended June 30, 2012, and (ii) decreased charter hire earned for certain of our vessels during the six-month period ended June 30, 2013, partly offset by revenue earned by the four newbuild vessels delivered to us during the six-month period ended June 30, 2013. Voyage revenue adjusted on a cash basis (which adjusts for non-cash "Accrued charter revenue"), increased by 0.6%, or $1.1 million, to $198.2 million during the six-month period ended June 30, 2013, from $197.1 million during the six-month period ended June 30, 2012. The increase is attributable to the cash revenue earned by the four newbuild vessels delivered to us during the six-month period ended June 30, 2013, partly offset by cash revenue not earned from vessels disposed during the six-month period ended December 31, 2012 and the six-month period ended June 30, 2013, which were employed during the six-month period ended June 30, 2012.
Voyage Expenses
Voyage expenses decreased by 17.4%, or $0.4 million, to $1.9 million during the six-month period ended June 30, 2013, from $2.3 million during the six-month period ended June 30, 2012. The decrease was primarily attributable to the decreased off-hire expenses of our fleet, mainly fuel consumption and by the decreased third party commissions charged to us during the six-month period ended June 30, 2013, compared to the six-month period ended June 30, 2012.
Voyage Expenses - related parties
Voyage expenses -- related parties decreased by 6.7% or $0.1 to $1.4 million during the six-month period ended June 30, 2013, from $1.5 million during the six-month period ended June 30, 2012 and represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
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, were $56.4 million during the six-month periods ended June 30, 2013 and 2012.
General and Administrative Expenses
General and administrative expenses increased by 4.8%, or $0.1 million, to $2.2 million during the six-month period ended June 30, 2013, from $2.1 million during the six-month period ended June 30, 2012. Furthermore, General and administrative expenses for the six-month periods ended June 30, 2013 and June 30, 2012, include $0.5 million, respectively, for the services of the Company's officers in aggregate charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Management Fees - related parties
Management fees paid to our managers increased by 5.3%, or $0.4 million, to $8.0 million during the six-month period ended June 30, 2013, from $7.6 million during the six-month period ended June 30, 2012. The increase was primarily attributable to (i) the inflation related upward adjustment of the management fee by 4% for each vessel (effective January 1, 2013), as provided under our group management agreement and (ii) the increased average number of vessels during the six-month period ended June 30, 2013 compared to the six-month period ended June 30, 2012.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs for the six-month periods ended June 30, 2013 and 2012 was $4.0 million and $3.9 million, respectively. During the six-month periods ended June 30, 2013 and 2012, five vessels and two vessels, respectively, underwent their special surveys.
Depreciation
Depreciation expense increased by 4.0%, or $1.6 million, to $41.5 million during the six-month period ended June 30, 2013, from $39.9 million during the six-month period ended June 30, 2012. The increase was primarily attributable to the depreciation expense charged for the four newbuild vessels and one secondhand vessel delivered to us during the six-month period ended June 30, 2013.
Gain on Sale/Disposal of Vessels
During the six-month period ended June 30, 2013, we recorded a gain of $6.4 million from the sale of two vessels. During the six-month period ended June 30, 2012, we recorded a net gain of $1.3 million, mainly from the sale of three vessels.
Foreign Exchange Gains
Foreign exchange gains amounted to $0.1 million and $0.3 during the six-month periods ended June 30, 2013 and 2012, respectively.
Interest Income
During the six-month period ended June 30, 2013, interest income decreased by 42.9%, or $0.3 million, to $0.4 million, from $0.7 million during the six-month period ended June 30, 2012.
Interest and Finance Costs
Interest and finance costs decreased by 10.7%, or $4.1 million, to $34.1 million during the six-month period ended June 30, 2013, from $38.2 million during the six-month period ended June 30, 2012. The decrease is partly attributable to the capitalized interest in relation with our newbuilding program and by the decreased commitment fees charged to us.
Gain / Loss on Derivative Instruments
The fair value of our 28 interest rate derivative instruments which were outstanding as of June 30, 2013, equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2013, the fair value of these 28 interest rate derivative instruments in aggregate amounted to a liability of $117.9 million. Twenty-seven of the 28 interest rate derivative instruments that were outstanding as at June 30, 2013, qualified for hedge accounting and the effective portion of the change in their fair value is recorded in "Comprehensive loss". For the six-month period ended June 30, 2013, a gain of $57.4 million has been included in "Comprehensive loss" and a gain of $5.6 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 six-month period ended June 30, 2013.
Cash Flows
Six-month periods ended June 30, 2013 and 2012 | ||||||||
Condensed cash flows | Six-month period ended June 30, | |||||||
(Expressed in millions of U.S. dollars) | 2012 | 2013 | ||||||
Net Cash Provided by Operating Activities | $ | 84.0 | $ | 78.1 | ||||
Net Cash Used in Investing Activities | $ | (106.7 | ) | $ | (364.9 | ) | ||
Net Cash Provided by Financing Activities | $ | 166.3 | $ | 131.9 | ||||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the six-month period ended June 30, 2013 decreased by $5.9 million to $78.1 million, compared to $84.0 million for the six-month period ended June 30, 2012. The decrease was primarily attributable to unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $11.7 million, partly offset by increased cash from operations of $1.1 million mainly due to cash generated from the charters of the four newbuild vessels delivered to us during the six-month period ended June 30, 2013 and decreased payments for interest (including swap payments) of $1.5 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $364.9 million in the six-month period ended June 30, 2013, which mainly consisted of (a) $324.0 million advance payments for the construction and purchase of eight newbuild vessels, (b) $47.1 million in payments for the acquisition of three secondhand vessels, (c) $0.5 million advance payment we paid for the acquisition of one secondhand vessel delivered to us on July 3, 2013, (d) $0.6 million in payments for expenses related to the sale of vessel MSC Washington and (e) $7.2 million we received from the sale of one vessel.
Net cash used in investing activities was $106.7 million in the six-month period ended June 30, 2012, which consisted of (a) $69.2 million advance payments for the construction and purchase of five newbuild vessels, (b) $54.9 million in payments for the acquisition of three secondhand vessels and (c) $17.4 million we received from the sale of three vessels.
Net Cash Provided By Financing Activities
Net cash provided by financing activities was $131.9 million in the six-month period ended June 30, 2013, which mainly consisted of (a) $74.1 million of indebtedness that we repaid, (b) $251.9 million we drew down from four of our credit facilities and (c) $40.4 million we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2012 and the first quarter of the year 2013.
Net cash provided by financing activities was $166.3 million in the six-month period ended June 30, 2012, which mainly consists of (a) $90.2 million of indebtedness that we repaid, (b) $199.3 million we drew down from five of our credit facilities, (c) $34.6 million, we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2011 and the first quarter of the year 2012 and (d) $100.6 million net proceeds we received from our follow-on offering in March 2012, net of underwriting discounts and expenses incurred in the offering.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of June 30, 2013, we had a total cash liquidity of $ 165.1 million, consisting of cash, cash equivalents and restricted cash.
Debt-free vessels
As of July 24, 2013, the following vessels were free of debt.
Unencumbered Vessels in the water | ||||
(refer to fleet list below for full charter details) | ||||
Vessel Name | Year Built |
TEU Capacity |
||
NAVARINO | 2010 | 8,531 | ||
VENETIKO | 2003 | 5,928 | ||
AKRITAS | 1987 | 3,152 | ||
MSC CHALLENGER | 1986 | 2,633 | ||
MESSINI | 1997 | 2,458 | ||
Capital commitments
As of July 24, 2013, we had outstanding commitments relating to our contracted newbuilds aggregating $314.5 million payable in installments until the vessels are delivered.
Conference Call details:
On Thursday, July 25, 2013 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(855) 551-9080 (from the US), 0(800) 051-3806 (from the UK) or +(44) (0) 2086 020 818 (from outside the US). Please quote "Costamare".
A replay of the conference call will be available until August 28, 2013. The United States replay number is 1(855) 859-2056; from the UK 0(800) 917-2646; the standard international replay number is (+44) (0) 2031 070 235 and the access code required for the replay is: 20625174#.
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 38 years of history in the international shipping industry and a fleet of 59 containerships, with a total capacity of approximately 336,000 TEU, including six newbuild containerships on order and three vessels acquired pursuant to the Framework Agreement with York. Costamare Inc.'s common shares trade on the New York Stock Exchange under the symbol "CMRE".
Forward-Looking Statements
This earnings release contains "forward-looking statements". In some cases, you can identify these statements by forward-looking words such as "believe", "intend", "anticipate", "estimate", "project", "forecast", "plan", "potential", "may", "should", "could" and "expect" and similar expressions. These statements are not historical facts but instead represent only Costamare's belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare's control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in Costamare Inc.'s Annual Report on Form 20-F (File No. 001-34934) under the caption "Risk Factors".
Fleet List
The tables below provide additional information, as of July 24, 2013, about our fleet of 59 containerships, including six newbuilds on order and three vessels acquired pursuant to the Framework Agreement with York. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
Vessel Name | Charterer | Year Built | Capacity (TEU) | Time Charter Term(1) | Current Daily Charter Hire (U.S. dollars) | Expiration of Charter(1) | Average Daily Charter Rate Until Earliest Expiry of Charter (U.S. dollars)(2) | |||||||||
1 | COSCO GUANGZHOU | COSCO | 2006 | 9,469 | 12 years | 36,400 | December 2017 | 36,400 | ||||||||
2 | COSCO NINGBO | COSCO | 2006 | 9,469 | 12 years | 36,400 | January 2018 | 36,400 | ||||||||
3 | COSCO YANTIAN | COSCO | 2006 | 9,469 | 12 years | 36,400 | February 2018 | 36,400 | ||||||||
4 | COSCO BEIJING | COSCO | 2006 | 9,469 | 12 years | 36,400 | April 2018 | 36,400 | ||||||||
5 | COSCO HELLAS | COSCO | 2006 | 9,469 | 12 years | 37,519 | May 2018 | 37,519 | ||||||||
6 | MSC ATHENS | MSC | 2013 | 8,827 | 10 years | 42,000 | January 2023 | 42,000 | ||||||||
7 | MSC ATHOS | MSC | 2013 | 8,827 | 10 years | 42,000 | February 2023 | 42,000 | ||||||||
8 | VALOR | Evergreen | 2013 | 8,827 | 7 years(i) | 41,700 | April 2020 (i) | 41,700 | ||||||||
9 | VALUE | Evergreen | 2013 | 8,827 | 7 years(i) | 41,700 | April 2020 (i) | 41,700 | ||||||||
10 | NAVARINO | Evergreen | 2010 | 8,531 | 1.5 years | 30,950 | September 2013 | 30,950 | ||||||||
11 | MAERSK KAWASAKI (ii) | A.P. Moller-Maersk | 1997 | 7,403 | 10 years | 37,000 | December 2017 | 37,000 | ||||||||
12 | MAERSK KURE (ii) | A.P. Moller-Maersk | 1996 | 7,403 | 10 years | 37,000 | December 2017 | 37,000 | ||||||||
13 | MAERSK KOKURA (ii) | A.P. Moller-Maersk | 1997 | 7,403 | 10 years | 37,000 | February 2018 | 37,000 | ||||||||
14 | MSC METHONI | MSC | 2003 | 6,724 | 10 years | 29,000 | September 2021 | 29,000 | ||||||||
15 | SEALAND NEW YORK | A.P. Moller-Maersk | 2000 | 6,648 | 11 years | 30,375 (3) | March 2018 | 26,829 | ||||||||
16 | MAERSK KOBE | A.P. Moller-Maersk | 2000 | 6,648 | 11 years | 38,179 (4) | May 2018 | 28,464 | ||||||||
17 | SEALAND WASHINGTON | A.P. Moller-Maersk | 2000 | 6,648 | 11 years | 30,375 (5) | June 2018 | 27,042 | ||||||||
18 | SEALAND MICHIGAN | A.P. Moller-Maersk | 2000 | 6,648 | 11 years | 25,375 (6) | August 2018 | 25,923 | ||||||||
19 | SEALAND ILLINOIS | A.P. Moller-Maersk | 2000 | 6,648 | 11 years | 30,375 (7) | October 2018 | 27,221 | ||||||||
20 | MAERSK KOLKATA | A.P. Moller-Maersk | 2003 | 6,644 | 11 years | 38,865 (8) | November 2019 | 31,103 | ||||||||
21 | MAERSK KINGSTON | A.P. Moller-Maersk | 2003 | 6,644 | 11 years | 38,461 (9) | February 2020 | 31,275 | ||||||||
22 | MAERSK KALAMATA | A.P. Moller-Maersk | 2003 | 6,644 | 11 years | 38,418 (10) | April 2020 | 31,386 | ||||||||
23 | VENETIKO (iii) | PIL | 2003 | 5,928 | 1.0 year | 14,500 | March 2014 | 14,500 | ||||||||
24 | ENSENADA EXPRESS (*) | Hapag Lloyd | 2001 | 5,576 | 2.0 years | 19,000 | May 2015 | 19,000 | ||||||||
25 | MSC ROMANOS | MSC | 2003 | 5,050 | 5.3 years | 28,000 | November 2016 | 28,000 | ||||||||
26 | ZIM NEW YORK | ZIM | 2002 | 4,992 | 13 years | 23,150 | July 2015 (11) | 23,150 | ||||||||
27 | ZIM SHANGHAI | ZIM | 2002 | 4,992 | 13 years | 23,150 | August 2015 (11) | 23,150 | ||||||||
28 | ZIM PIRAEUS (iv) | ZIM | 2004 | 4,992 | 10 years | 22,150 (12) | March 2014 | 43,984 | ||||||||
29 | OAKLAND EXPRESS | Hapag Lloyd | 2000 | 4,890 | 8 years | 30,500 | September 2016 | 30,500 | ||||||||
30 | HALIFAX EXPRESS | Hapag Lloyd | 2000 | 4,890 | 8 years | 30,500 | October 2016 | 30,500 | ||||||||
31 | SINGAPORE EXPRESS | Hapag Lloyd | 2000 | 4,890 | 8 years | 30,500 | July 2016 | 30,500 | ||||||||
32 | MSC MANDRAKI | MSC | 1988 | 4,828 | 7.8 years | 20,000 | August 2017 | 20,000 | ||||||||
33 | MSC MYKONOS | MSC | 1988 | 4,828 | 8.2 years | 20,000 | September 2017 | 20,000 | ||||||||
34 | MSC ULSAN | MSC | 2002 | 4,132 | 5.3 years | 16,500 | March 2017 | 16,500 | ||||||||
35 | MSC ANTWERP | MSC | 1993 | 3,883 | 4.3 years | 17,500 | August 2013 | 17,500 | ||||||||
36 | MSC KYOTO | MSC | 1981 | 3,876 | 9.5 years | 13,500 (13) | September 2018 | 13,500 | ||||||||
37 | KORONI | Evergreen | 1998 | 3,842 | 2 years | 11,500 | April 2014 | 11,500 | ||||||||
38 | KYPARISSIA | Evergreen | 1998 | 3,842 | 2 years | 11,500 | May 2014 | 11,500 | ||||||||
39 | KARMEN | Sea Consortium | 1991 | 3,351 | 1.7 years | 6,750 | August 2013 | 6,750 | ||||||||
40 | MARINA | Evergreen | 1992 | 3,351 | 1.8 years | 7,000 | February 2014 | 7,000 | ||||||||
41 | KONSTANTINA | Evergreen | 1992 | 3,351 | 1.0 year | 7,550 | September 2013 | 7,550 | ||||||||
42 | AKRITAS | Hapag Lloyd | 1987 | 3,152 | 4 years | 12,500 | August 2014 | 12,500 | ||||||||
43 | MSC CHALLENGER | MSC | 1986 | 2,633 | 4.8 years | 10,000 | July 2015 | 10,000 | ||||||||
44 | MESSINI | Evergreen | 1997 | 2,458 | 1.5 years | 8,100 | February 2014 | 8,100 | ||||||||
45 | MSC REUNION (v) | MSC | 1992 | 2,024 | 6 years | 11,500 | June 2014 | 11,500 | ||||||||
46 | MSC NAMIBIA II (v) | MSC | 1991 | 2,023 | 6.8 years | 11,500 | July 2014 | 11,500 | ||||||||
47 | MSC SIERRA II (v) | MSC | 1991 | 2,023 | 5.7 years | 11,500 | June 2014 | 11,500 | ||||||||
48 | MSC PYLOS (v) | MSC | 1991 | 2,020 | 3 years | 11,500 | January 2014 | 11,500 | ||||||||
49 | X-PRESS PADMA (*) | Sea Consortium | 1998 | 1,645 | 2.0 years | 7,650 (14) | June 2015 | 7,925 | ||||||||
50 | PROSPER | COSCO | 1996 | 1,504 | 1.0 year | 7,350 | March 2014 | 7,350 | ||||||||
51 | ZAGORA | MSC | 1995 | 1,162 | 3.7 years | 5,700 | April 2015 | 5,700 | ||||||||
52 | PETALIDI (*) | CMA CGM | 1994 | 1,162 | 1.0 years | 6,300 | June 2014 | 6,300 | ||||||||
53 | STADT LUEBECK | CMA CGM | 2001 | 1.078 | 1.7 years | 6,200 (15) | July 2014 | 6,384 | ||||||||
Newbuilds
Vessel Name | Shipyard | Charterer | Expected Delivery (based on latest shipyard schedule) |
Capacity (TEU)(16) |
||||||
1 | Hull S4022 | Sungdong Shipbuilding | Evergreen | August 2013 | 8,827 | |||||
2 | Hull S4023 | Sungdong Shipbuilding | Evergreen | August 2013 | 8,827 | |||||
3 | Hull S4024 | Sungdong Shipbuilding | Evergreen | October 2013 | 8,827 | |||||
4 | H1068A | Jiangnan Changxing | MSC | December 2013 | 9,403 | |||||
5 | H1069A | Jiangnan Changxing | MSC | December 2013 | 9,403 | |||||
6 | H1070A | Jiangnan Changxing | MSC | February 2014 | 9,403 | |||||
(1) | Charter terms and expiration dates are based on the earliest date charters could expire. | |
(2) | This average rate is calculated based on contracted charter rates for the days remaining between July 24, 2013 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) | 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) | 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. | |
(14) | This charter rate changes on July 27 2014 to $8,225 per day until the earliest redelivery date. | |
(15) | This charter rate changes on August 23, 2013 to $6,400 per day until the earliest redelivery date. The charterer has a unilateral option to extend the charter of the vessel for a period of six months at a rate of $8,500 per day. | |
(16) | Based on updated vessel specifications. | |
i. | Assumes exercise of Owners unilateral options to extend the charter of these vessels for two one year periods. | |
ii. | 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. | |
iii. | The charterer has a unilateral option to extend the charter of the vessel for a period of 12 months at a rate of $28,000 per day. | |
iv. | 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. | |
v. | Owners have a unilateral option to extend the charters of the vessels for an additional period of two years at market rate, to be defined annually, based on the closest category on the Contex index. | |
(*) | Denotes vessels acquired pursuant to the Framework Agreement with York. The Company holds a 49% equity percentage in each of the vessel-owning entities. | |
COSTAMARE INC. | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
Six-months ended June 30, | Three-months ended June 30, | |||||||||||||||
(Expressed in thousands of U.S. dollars, except share and per share amounts) | 2012 | 2013 | 2012 | 2013 | ||||||||||||
(Unaudited) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Voyage revenue | $ | 196,076 | $ | 191,566 | $ | 96,045 | $ | 100,030 | ||||||||
EXPENSES: | ||||||||||||||||
Voyage expenses | (2,283 | ) | (1,877 | ) | (1,592 | ) | (1,198 | ) | ||||||||
Voyage expenses - related parties | (1,452 | ) | (1,449 | ) | (711 | ) | (757 | ) | ||||||||
Vessels' operating expenses | (56,365 | ) | (56,352 | ) | (28,673 | ) | (28,472 | ) | ||||||||
General and administrative expenses | (2,099 | ) | (2,243 | ) | (1,174 | ) | (1,280 | ) | ||||||||
Management fees - related parties | (7,573 | ) | (7,990 | ) | (3,824 | ) | (4,100 | ) | ||||||||
Amortization of dry-docking and special survey costs | (3,936 | ) | (4,029 | ) | (1,988 | ) | (1,979 | ) | ||||||||
Depreciation | (39,881 | ) | (41,489 | ) | (19,868 | ) | (21,607 | ) | ||||||||
Gain on sale/disposal of vessels | 1,303 | 6,460 | 4,104 | 3,551 | ||||||||||||
Foreign exchange gains | 192 | 86 | 80 | 11 | ||||||||||||
Operating income | $ | 83,982 | $ | 82,683 | $ | 42,399 | $ | 44,199 | ||||||||
OTHER INCOME (EXPENSES): | ||||||||||||||||
Interest income | $ | 716 | $ | 409 | $ | 432 | $ | 200 | ||||||||
Interest and finance costs | (38,237 | ) | (34,108 | ) | (17,997 | ) | (16,544 | ) | ||||||||
Other | (101 | ) | 847 | 22 | 230 | |||||||||||
Gain /(loss) on derivative instruments | (679 | ) | 5,460 | (3,709 | ) | 2,471 | ||||||||||
Total other income (expenses) | $ | (38,301 | ) | $ | (27,392 | ) | $ | (21,252 | ) | $ | (13,643 | ) | ||||
Net Income | $ | 45,681 | $ | 55,291 | $ | 21,147 | $ | 30,556 | ||||||||
Earnings per common share, basic and diluted | $ | 0.71 | $ | 0.74 | $ | 0.31 | $ | 0.41 | ||||||||
Weighted average number of shares, basic and diluted | 64,462,088 | 74,800,000 | 67,800,000 | 74,800,000 | ||||||||||||
COSTAMARE INC. | ||||||||
Consolidated Balance Sheets | ||||||||
As of December 31, | As of June 30, | |||||||
(Expressed in thousands of U.S. dollars) | 2012 | 2013 | ||||||
(Audited) | (Unaudited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 267,321 | $ | 112,402 | ||||
Restricted cash | 5,330 | 6,243 | ||||||
Receivables | 2,237 | 12,994 | ||||||
Inventories | 9,398 | 14,385 | ||||||
Due from related parties | 2,616 | 4,182 | ||||||
Fair value of derivatives | 165 | 40 | ||||||
Insurance claims receivable | 1,454 | 1,419 | ||||||
Accrued charter revenue | 5,100 | 9,306 | ||||||
Prepayments and other | 1,862 | 4,831 | ||||||
Vessels held for sale | 4,441 | - | ||||||
Total current assets | $ | 299,924 | $ | 165,802 | ||||
FIXED ASSETS, NET: | ||||||||
Advances for vessels acquisitions | $ | 339,552 | $ | 271,022 | ||||
Vessels, net | 1,582,345 | 1,977,601 | ||||||
Total fixed assets, net | $ | 1,921,897 | $ | 2,248,623 | ||||
NON-CURRENT ASSETS: | ||||||||
Deferred charges, net | $ | 34,099 | $ | 33,162 | ||||
Restricted cash | 41,992 | 46,428 | ||||||
Accrued charter revenue | 13,422 | 6,702 | ||||||
Total assets | $ | 2,311,334 | $ | 2,500,717 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 162,169 | $ | 192,033 | ||||
Accounts payable | 5,882 | 10,148 | ||||||
Accrued liabilities | 9,292 | 14,112 | ||||||
Unearned revenue | 5,595 | 3,705 | ||||||
Fair value of derivatives | 55,701 | 55,776 | ||||||
Other current liabilities | 10,772 | 2,896 | ||||||
Total current liabilities | $ | 249,411 | $ | 278,670 | ||||
NON-CURRENT LIABILITIES | ||||||||
Long-term debt, net of current portion | $ | 1,399,720 | $ | 1,547,586 | ||||
Fair value of derivatives, net of current portion | 125,110 | 62,094 | ||||||
Unearned revenue, net of current portion | 16,641 | 21,509 | ||||||
Total non-current liabilities | $ | 1,541,471 | $ | 1,631,189 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | $ | 8 | $ | 8 | ||||
Additional paid-in capital | 714,100 | 714,100 | ||||||
Accumulated deficit | (40,814 | ) | (25,915 | ) | ||||
Accumulated other comprehensive loss | (152,842 | ) | (97,335 | ) | ||||
Total stockholders' equity | $ | 520,452 | $ | 590,858 | ||||
Total liabilities and stockholders' equity | $ | 2,311,334 | $ | 2,500,717 | ||||
Contact Information:
Contacts:
Company Contact:
Gregory Zikos
Chief Financial Officer
Konstantinos Tsakalidis
Business Development
Costamare Inc., Athens, Greece
Tel: (+30) 210-949-0000
Email:
Investor Relations Advisor/ Media Contact:
Gus Okwu
Allison & Partners, New York
Telephone: (+1) 646-428-0638
Email: