Capital Product Partners L.P.
Unaudited Condensed Consolidated and Combined Statements of Income (Note 1)
(In thousands of United States Dollars, except number of units and earnings
per unit)
For the three month
period ended March 31,
2010 2009
---------- ----------
Revenues 29,977 32,331
Revenues - related party 1,152 -
---------- ----------
Total Revenues 31,129 32,331
---------- ----------
Expenses:
Voyage expenses 795 286
Vessel operating expenses - related party 7,036 6,503
Vessel operating expenses - 618
General and administrative expenses 630 789
Depreciation 7,363 7,281
---------- ----------
Operating income 15,305 16,854
---------- ----------
Other income (expense), net:
Interest expense and finance cost (8,181) (7,873)
Interest income 320 526
Foreign currency (loss)/gain, net (11) 15
---------- ----------
Total other (expense), net (7,872) (7,332)
---------- ----------
Net income 7,433 9,522
---------- ----------
Less:
Net income attributable to CMTC operations 658 722
---------- ----------
Partnership's net income 6,775 8,800
========== ==========
General Partner's interest in Partnership's net
income $ 136 $ 176
Limited Partners' interest in Partnership's net
income 6,639 8,624
Net income per:
Common units (basic and diluted) 0.25 0.38
Subordinated units (basic and diluted) - 0.22
Total units (basic and diluted) 0.25 0.35
---------- ----------
Weighted-average units outstanding:
Common units (basic and diluted) 27,088,525 20,512,229
Subordinated units (basic and diluted) - 4,304,922
Total units (basic and diluted) 27,088,525 24,817,151
Capital Product Partners L.P.
Unaudited Condensed Consolidated and Combined Balance Sheets (Note 1)
(In thousands of United States Dollars, except number of shares and units)
March 31, December 31,
2010 2009
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 1,321 $ 3,552
Short term investments 43,294 30,390
Trade accounts receivable 1,218 735
Due from related party 66 2,681
Inventory 185 111
Prepayments and other assets 475 522
------------ ------------
Total current assets 46,559 37,991
------------ ------------
Fixed assets
Vessels, net 665,078 672,441
------------ ------------
Total fixed assets 665,078 672,441
------------ ------------
Other non-current assets
Deferred charges, net 2,878 3,095
Restricted cash 4,500 4,500
------------ ------------
Total non-current assets 672,456 680,036
------------ ------------
Total assets $ 719,015 $ 718,027
------------ ------------
Liabilities and Partners' Capital
Current liabilities
Current portion of related party long-term debt $ - $ 2,600
Trade accounts payable 945 296
Due to related parties 4,348 4,939
Accrued liabilities 2,066 2,276
Deferred revenue 1,438 3,458
------------ ------------
Total current liabilities 8,797 13,569
------------ ------------
Long-term liabilities
Long-term debt 474,000 474,000
Long-term related party debt - 23,150
Deferred revenue 2,247 2,062
Derivative instruments 38,412 36,931
------------ ------------
Total long-term liabilities 514,659 536,143
------------ ------------
Total liabilities 523,456 549,712
------------ ------------
Commitments and contingencies - -
------------ ------------
Stockholders' Equity - 11,187
Partners' Capital 195,559 157,128
------------ ------------
Total liabilities and partners' Capital $ 719,015 $ 718,027
------------ ------------
Capital Product Partners L.P.
Unaudited Condensed Consolidated and Combined Statements of Cash Flows
(Note 1)
(In thousands of United States Dollars)
For the three
month period ended
March 31,
2010 2009
Cash flows from operating activities:
Net income $ 7,433 $ 9,522
Adjustments to reconcile net income to net cash
provided by operating activities:
Vessel depreciation and amortization 7,363 7,281
Amortization of deferred charges 137 84
Changes in operating assets and liabilities:
Trade accounts receivable (1,476) 4,704
Due from related parties 159 -
Prepayments and other assets 47 (222)
Inventories (74) (59)
Trade accounts payable 609 471
Due to related parties (591) (136)
Accrued liabilities (815) (28)
Deferred revenue (1,835) (3,322)
-------- --------
Net cash provided by operating activities 10,957 18,295
-------- --------
Cash flows from investing activities:
Vessel acquisitions (33,479) (409)
Purchase of short term investments (41,929) (25,165)
Maturity of short term investments 29,025 8,300
-------- --------
Net cash (used in) investing activities (46,383) (17,274)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of Partnership units 54,075 -
Expenses paid for issuance of Partnership units (332) -
Payments of related party debt/financing (650) (409)
Loan issuance costs 6 (28)
Excess of purchase price over book value of vessels
acquired from entity under common control (9,521) -
Dividends paid (10,383) (29,962)
-------- --------
Net cash provided by (used in) financing activities 33,195 (30,399)
-------- --------
Net (decrease) in cash and cash equivalents (2,231) (29,378)
Cash and cash equivalents at beginning of period 3,552 43,149
-------- --------
Cash and cash equivalents at end of period $ 1,321 $ 13,771
-------- --------
Supplemental Cash Flow information
Cash paid for interest $ 7,836 $ 7,716
Non-cash Activities
Accrued offering expenses 607 -
Payable offering expenses 40 -
Reduction in deferred offering expenses 55 -
Net liabilities assumed by CMTC upon vessel
contribution to the Partnership 21,634 -
Notes
(1) The unaudited condensed consolidated and combined statements of income
and cash flows for the three month period ended March 31, 2010 include the
results of operations of M/T Atrotos which was acquired from Capital
Maritime, an entity under common control, on March 1, 2010 as though the
transfer had occurred at the beginning of the year (January 1, 2010)
The unaudited condensed consolidated and combined statements of income and
cash flows for the three month period ended March 31, 2009 include the
results of operations of M/T Agamemnon II and M/T Ayrton II which were
acquired from Capital Maritime, an entity under common control, on April 7
and April 13, 2009 respectively, as though the transfers had occurred at
the beginning of the earliest period presented (January 1, 2009).
(2) Short term investments consist of cash time deposits with original
maturities of more than three months with de minimis breakage costs.
Capital Product Partners L.P.
Appendix A - Reconciliation of Non-GAAP Financial Measure
(In thousands of U.S. dollars)
Description of Non-GAAP Financial Measure - Operating Surplus
Operating Surplus represents net income adjusted for non cash items such as
depreciation and amortization expense, unearned revenue and unrealized gain
and losses. Replacement capital expenditures represent those capital
expenditures required to maintain over the long term the operating capacity
of, or the revenue generated by, the Partnership's capital assets.
Operating Surplus is a quantitative standard used in the publicly-traded
partnership investment community to assist in evaluating a partnership's
ability to make quarterly cash distributions. Operating Surplus is not
required by accounting principles generally accepted in the United States
and should not be considered as an alternative to net income or any other
indicator of the Partnership's performance required by accounting
principles generally accepted in the United States. The tables below
reconcile Operating Surplus to net income for the three month period ended
March 31, 2010.
For the
three-month
Reconciliation of Non-GAAP Financial Measure - period ended
Operating Surplus March 31, 2010
Net income $ 7,433
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation and amortization 7,499
Deferred revenue 199
M/T Atrotos net income for the period from January 1, 2010 to
February 28, 2010 (658)
M/T Atrotos depreciation for the period from January 1, 2010
to February 28, 2010 (239)
------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 14,234
------------
Replacement Capital Expenditures 2,513
------------
OPERATING SURPLUS 11,721
------------
Recommended reserves 4,581
------------
AVAILABLE CASH 7,140
------------
Contact Information: For more information about the Partnership, please visit our website: www.capitalpplp.com. Contact Details: Capital GP L.L.C. Ioannis Lazaridis CEO and CFO +30 (210) 4584 950 E-mail: i.lazaridis@capitalpplp.com Capital Maritime & Trading Corp. Jerry Kalogiratos +30 (210) 4584 950 j.kalogiratos@capitalpplp.com Investor Relations / Media Matthew Abenante Capital Link, Inc. (New York) Tel. +1-212-661-7566 E-mail: cplp@capitallink.com