ATHENS, GREECE--(Marketwire - May 23, 2011) - Costamare Inc. ("Costamare") (NYSE: CMRE), today reported unaudited financial results for the first quarter ended March 31, 2011.
Highlights
-- Voyage revenues of $86.0 million for the three months ended
March 31, 2011.
-- Voyage revenues adjusted on a cash basis of $94.0 million for the three
months ended March 31, 2011.
-- Adjusted EBITDA of $61.3 million for the three months ended March 31,
2011.
-- Net income of $17.9 million or $0.30 per share for the three months
ended March 31, 2011.
-- Adjusted Net Income of $22.4 million or $0.37 per share for the three
months ended March 31, 2011.
-- Ordered from Sungdong Shipbuilding & Marine Engineering Co., Ltd. of
Korea five newbuild containerships, each of approximately 8,800 TEU
capacity. The five newbuild containerships are expected to be delivered
between the first and the third quarters of 2013. The Company has
entered into long-term time charter agreements with members of the
Evergreen Group for the employment of each vessel immediately upon
delivery.
The acquisition is expected to be financed by cash from operations and
new credit facilities; the Company has received indications of interest
from major financial institutions and does not expect to use its
currently committed credit line.
Both the contract price and the daily charter rate are similar to
those agreed in January 2011 regarding the three approximately 9,000
TEU newbuild containerships contracted with China Shipbuilding Trading
Company Limited and Shanghai Jiangnan Changxing Heavy Industry Co.,
Ltd. and chartered to Mediterranean Shipping Company S.A. These three
previously announced vessels were contracted for a price of
approximately $95 million each and chartered for a period of 10 years
at a daily rate of $43,000.
-- Accepted delivery of a total of eight vessels, which had been purchased
during the last two quarters:
a) The 2,020 TEU, 1991 built vessel MSC Pylos (ex Oranje) delivered on
January 7, 2011
b) The 1,162 TEU, 1995 built vessel Zagora, delivered on January 28,
2011
c) The 3,351 TEU, 1992 built vessel, Marina (ex. Zim Hong Kong)
delivered on February 28, 2011
d) The 1,504 TEU, 1996 built vessel Prosper (ex. Forever Prosperity)
delivered on March 8, 2011
e) The 3,351 TEU, 1992 built vessel Konstantina (ex. Zim Israel)
delivered on March 16, 2011
f) The 2,203 TEU, 1991 built vessel MSC Namibia II (ex. Maersk
Vermont) delivered on March 26, 2011
g) The 2,023 TEU, 1991 built vessel, MSC Sierra II (ex. Maersk
Maryland) delivered on March 29, 2011
h) The 2,204 TEU, 1992 built vessel, MSC Sudan II (ex. Maersk Maine)
delivered on March 31, 2011
-- Finalized with a major European financial institution the financing
arrangements for the two newbuilding contracts entered into with
Sungdong Shipbuilding & Marine Engineering Co., Ltd. in January 2011.
The two newbuild containerships are expected to be delivered by the
end of 2012, and the Company has entered into time charter agreements
with Mediterranean Shipping Company S.A. for the employment of each
containership immediately upon delivery for a period of 10 years.
-- Entered into the following chartering agreements:
a) To charter its 1991 built 3,351 TEU c/v Karmen for a period of
approximately 12 months, starting from April 22, 2011 at a daily
rate of $19,400. The vessel was acquired in September 2010 for a
price of $11.25 million.
b) To charter its 1992 built 3,351 TEU c/v Marina for a period of
approximately 12 months, starting from April 2, 2011 at a daily
rate of $18,000. The vessel was acquired in September 2010 for a
price of $11.25 million.
c) To charter its 1991 built 2,020 TEU c/v MSC Pylos for a period of
approximately 12 months, starting from February 28, 2011 at a daily
rate of $9,200. The vessel was acquired in December 2010 for a
price of $7.5 million.
d) To charter its 1996 built 1,504 TEU c/v Prosper for a period of
approximately 12 months, starting from April 15, 2011 at a daily
rate of $10,500. The vessel was acquired in January 2011 for a
price of $9.5 million.
e) To charter its 1995 built 1,162 TEU c/v Zagora for a period of
approximately 6 months, starting from February 7, 2011 at a daily
rate of $7,500. The vessel was acquired in December 2010 for a
price of $8.3 million.
f) To extend the charter agreement of the 3,883 TEU, 1993 built
MSC Antwerp from May 15, 2011 for a period of 27 months at $17,500
daily. The vessel was acquired in 1999.
g) To extend the charter agreement of the 2,024 TEU, 1992 built
MSC Sudan II for a period of approximately 12 months, starting from
July 2011, at a rate of $12,000 daily. The vessel was acquired in
February 2011 for a price of $10.0 million.
-- Declared in April 2011, a dividend for the first quarter ended
March 31, 2011, of $0.25 per share which was paid on May 12, 2011 to
stockholders of record at the close of trading of the Company's common
stock on the New York Stock Exchange (the NYSE) on April 28, 2011. This
was the second cash dividend we have declared and paid since our
Initial Public Offering on November 4, 2010.
Mr. Konstantinos V. Konstantakopoulos, Chairman and CEO of Costamare Inc., commented:
We are pleased that over the last 6 months we were able to grow in accordance with our plans. I am confident that our recent investments in both new building and second hand vessels at an attractive point in the cycle will prove successful. After having been patient for almost 4 years, we are back on a growth track as we believe that today's prices and charter rates justify the investment for the asset classes we are looking at.
After the Chinese New Year, the charter market developed as expected, so we are chartering our recently acquired vessels at favorable rates.
Our market is now entering its normal peak season and as long as the demand follows the usual pattern for this period, we do not expect any charter market deterioration; rather the opposite.
Going forward, we will be opportunistic and selective, while we will continue focusing on providing our customers with reliable and efficient services.
Financial Summary
Three-month period ended
March 31,
--------------------------
(Expressed in thousands of U.S. dollars, except
share and per share amounts): 2010 2011
------------ -------------
Voyage revenue $ 89,024 $ 85,961
Accrued charter revenue (1) $ (9,117) $ 7,988
------------ -------------
Voyage revenue adjusted on a cash basis (2) $ 79,907 $ 93,949
============ =============
Adjusted EBITDA (3) $ 50,612 $ 61,305
Adjusted Net Income (3) $ 14,500 $ 22,396
Weighted Average number of shares 47,000,000 60,300,000
Adjusted Earnings per share (3) $ 0.31 $ 0.37
EBITDA (3) $ 60,795 $ 56,857
Net Income $ 24,683 $ 17,948
Weighted Average number of shares 47,000,000 60,300,000
Earnings per share $ 0.53 $ 0.30
(1) Accrued charter revenue represents the difference between cash received
during the period and revenue recognized on a straight-line basis.
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after
cash changes in "Accrued charter revenue" deriving from escalating
charter rates under which certain of our vessels operate. However,
Voyage revenue adjusted on a cash basis is not a recognized measurement
under U.S. generally accepted accounting principles, or "GAAP." We
believe that the presentation of Voyage revenue adjusted on a cash
basis is useful to investors because it presents the charter revenue
for the relevant period based on the then current daily charter rates.
The increases or decreases in daily charter rates under our charter
party agreements are described in the notes to the "Fleet List" below.
(3) Adjusted net income, adjusted earnings per share, EBITDA and adjusted
EBITDA are non-GAAP measures. Refer to the reconciliation of net income
to adjusted net income and net income to EBITDA and adjusted EBITDA
below.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month periods ended March 31, 2011 and March 31, 2010. 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
Three-month period ended
March 31,
--------------------------
(Expressed in thousands of U.S. dollars, except
share and per share data) 2010 2011
------------ ------------
Net Income $ 24,683 $ 17,948
Accrued charter revenue (9,117) 7,988
Gain on sale of vessels (2,295) -
Realized (Gain) Loss on Euro/USD forward
contracts 231 (6)
(Gain) Loss on derivative instruments 998 (4,731)
Initial purchases of consumable stores for
newly acquired vessels - 1,197
------------ ------------
Adjusted Net income $ 14,500 $ 22,396
============ ============
Adjusted Earnings per Share $ 0.31 $ 0.37
============ ============
Weighted average number of shares 47,000,000 60,300,000
============ ============
Adjusted Net income and Adjusted Earnings per Share represent net income before gain/(loss) on sale of vessels, non-cash changes in fair value of derivatives, non-cash changes in "Accrued charter revenue" deriving from escalating charter rates under which certain of our vessels operate and the cash of partial purchases of consumable stores for newly acquired vessels. "Accrued charter revenue" is attributed to the time difference between the revenue recognition and the cash collection. However, 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
Three-month ended
March 31,
--------------------------
(Expressed in thousands of U.S. dollars) 2010 2011
------------ ------------
Net Income $ 24,683 $ 17,948
Interest and finance costs 17,671 18,744
Interest income (410) (191)
Depreciation 16,859 18,445
Amortization of dry-docking and special survey
costs 1,992 1,911
------------ ------------
EBITDA 60,795 56,857
Accrued charter revenue (9,117) 7,988
Gain on sale of vessels (2,295) -
Realized (Gain) Loss on Euro/USD forward
contracts 231 (6)
(Gain) Loss on derivative instruments 998 (4,731)
Initial purchases of consumable stores for
newly acquired vessels - 1,197
============ ============
Adjusted EBITDA $ 50,612 $ 61,305
============ ============
EBITDA represents net income before interest and finance costs, interest income, depreciation and amortization of deferred dry-docking & special survey costs. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, amortization of deferred dry-docking & special survey costs, gain/(loss) on sale of vessels, non-cash changes in fair value of derivatives, non-cash changes in "Accrued charter revenue" deriving from escalating charter rates under which certain of our vessels operate and the cash of partial purchases of consumable stores for newly acquired vessels. "Accrued charter revenue" is attributed to the time difference between the revenue recognition and the cash collection. However, EBITDA and Adjusted EBITDA are not recognized measurements under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of EBITDA and Adjusted EBITDA are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that EBITDA and Adjusted EBITDA are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of EBITDA and Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.
Results of Operations
Three-month period ended March 31, 2011 compared to the three-month period ended March 31, 2010
During the three-month periods ended March 31, 2011 and 2010, we had an average of 45.5 and 43.0 vessels, respectively, in our fleet. In the three-month period ended March 31, 2011 we accepted delivery of eight second-hand vessels with an aggregate TEU capacity of 17,458. In the three-month period ended March 31, 2010 we sold the vessel MSC Germany with TEU capacity of 2,712. In the three-month period ended March 31, 2011 and 2010 our fleet ownership days totaled 4,099 and 3,874 days, respectively. Ownership days are the primary driver of voyage revenue and vessels operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Three-month period
ended
March 31,
(Expressed in millions of U.S. ------------------ Percentage
dollars, except percentages) 2010 2011 Change Change
-------- -------- -------- --------
Voyage revenue $ 89.0 $ 86.0 $ (3.0) (3.4%)
Voyage expenses (0.4) (1.1) 0.7 175.0%
Voyage expenses - related parties - (0.6) 0.6 -
Vessels operating expenses (25.8) (27.5) 1.7 6.6%
General and administrative
expenses (0.6) (1.2) 0.6 100.0%
Management fees - related parties (2.7) (3.5) 0.8 29.6%
Amortization of dry-docking and
special survey costs (2.0) (1.9) (0.1) (5.0%)
Depreciation (16.9) (18.4) 1.5 8.9%
Gain on sale of vessels 2.3 - (2.3) (100.0%)
Foreign exchange gains / (losses) (0.1) 0.1 0.2 200.0%
Interest income 0.5 0.2 (0.3) (60.0%)
Interest and finance costs (17.7) (18.8) 1.1 6.2%
Other 0.1 (0.1) (0.2) (200.0%)
Gain (loss) on derivative
instruments (1.0) 4.7 5.7 570.0%
-------- --------
Net Income $ 24.7 $ 17.9 $ (6.8) (27.5%)
======== ========
Three-month period
ended
March 31,
(Expressed in millions of U.S. ------------------ Percentage
dollars, except percentages) 2010 2011 Change Change
-------- -------- -------- --------
Voyage revenue $ 89.0 $ 86.0 $ (3.0) (3.4%)
Accrued charter revenue (9.1) 8.0 17.1 187.9%
-------- --------
Voyage revenue adjusted on a cash
basis $ 79.9 94.0 $ 14.1 17.6%
======== ========
Three-month period
ended
March 31,
------------------ Percentage
Fleet operational data 2010 2011 Change Change
-------- -------- -------- --------
Average number of vessels 43.0 45.5 2.5 5.8%
Ownership days 3,874 4,099 225 5.8%
Number of vessels under
dry-docking 5 7 2
Voyage Revenue
Voyage revenue decreased by 3.4%, or $3.0 million, to $86.0 million during the three-month period ended March 31, 2011, from $89.0 million during the three-month period ended March 31, 2010. This decrease is due mainly to increased off-hire days of our fleet, resulting from the increased number of vessels that were dry-docked during the three month period ended March 31, 2011 compared to the three month period ended March 31, 2010. Voyage revenues adjusted on a cash basis however, increased by 17.6%, or $14.1 million, to $94.0 million during the three-month period ended March 31, 2011, from $79.9 million during the three-month period ended March 31, 2010. The increase is attributable to increased charter rates received in accordance with certain escalation clauses of our charters, as well as to the increased ownership days of our fleet, partly offset by increased off-hire days of our fleet, resulting from the increased number of vessels that were dry-docked during the three-month period ended March 31, 2011 compared to the three-month period ended March 31, 2010.
Voyage Expenses
Voyage expenses increased by 175.0%, or $0.7 million, to $1.1 million during the three-month period ended March 31, 2011, from $0.4 million during the three-month period ended March 31, 2010. The increase was primarily attributable to the off-hire expenses, mainly to bunkers consumption, of the eight container vessels which were delivered to us by their sellers in the three-month period ended March 31, 2011 and to the increased number of vessels that were dry-docked during the period.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.6 million represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our management agreement signed on November 4, 2010 (Initial Public Offering completion date).
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized gain (loss) under derivative contracts entered into in relation to foreign currency exposure, increased by 6.6%, or $1.7 million, to $27.5 million during the three-month period ended March 31, 2011, from $25.8 million during the three-month period ended March 31, 2010. The increase is attributable to increased ownership days of our fleet, as well as to initial purchases of consumable stores for the eight vessels that we accepted delivery during the three-month period ended March 31, 2011. No vessels were delivered to us in the three-month period ended March 31, 2010.
General and Administrative Expenses
General and administrative expenses increased by 100.0%, or $0.6 million, to $1.2 million during the three-month period ended March 31, 2011, from $0.6 million during the three-month period ended March 31, 2010. The increase in the three-month period ended March 31, 2011 was mainly attributable to increased public-company related expenses charged to us compared to the three-month period ended March 31, 2010, including $0.25 million for the services of the Company's officers in aggregate charged to us by Costamare Shipping Company S.A. as provided under our management agreement signed on November 4, 2010 (Initial Public offering completion date).
Management Fees - related parties
Management fees paid to our managers increased by 29.6%, or $0.8 million, to $3.5 million during the three-month period ended March 31, 2011, from $2.7 million during the three-month period ended March 31, 2010. The increase was attributable to the new daily management fee charged by our managers subsequent to the completion of our Initial Public Offering on November 4, 2010 and to the increased fleet ownership days for the three-month period ended March 31, 2011, compared to the three-month period ended March 31, 2010.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased by 5.0% or $0.1 million, to $1.9 million during the three-month period ended March 31, 2011, from $2.0 million during the three-month period ended March 31, 2010. The decrease was mainly attributable to the amortization expense not charged following the sale of the vessels MSC Germany, MSC Mexico and MSC Sicily during the nine-month period ended September 30, 2010 and the write-off of their unamortized dry-docking balance which was included in the sale result partially offset by the amortization expense charged for four of our vessels that underwent their initial dry-docking in the year ended December 31, 2010 and the amortization expense charged for seven of our vessels that underwent their initial dry-docking in the three-month period ended March 31, 2011.
Depreciation
Depreciation expense increased by 8.9%, or $1.5 million, to $18.4 million during the three-month period ended March 31, 2011, from $16.9 million during the three-month period ended March 31, 2010. The increase was primarily attributable to the depreciation expense charged for the vessel MSC Navarino that was delivered to us by the shipyard in May 2010, to the two container vessels that were delivered to us in November 2010 and to the eight container vessels that were delivered to us during the three-month period ended March 31, 2011. The vessel MSC Germany, which was sold in the three-month period ended March 31, 2010 was fully depreciated as of the date of her disposal.
Gain on Sale of Vessels
In the three-month period ended March 31, 2010, we recorded a gain of $2.3 million from the sale of vessel MSC Germany. During the three-month period ended March 31, 2011 no vessels were sold.
Foreign Exchange Gains / (Losses)
Foreign exchange gains were $0.1 million during the three-month period ended March 31, 2011, compared to losses of $0.1 million during the three-month period ended March 31, 2010, representing a change of $0.2 million resulting from favorable currency exchange rate movements between the U.S. dollar and the Euro.
Interest Income
During the three-month period ended March 31, 2011 interest income decreased by 60.0%, or $0.3 million, to $0.2 million, from $0.5 million during the three-month period ended March 31, 2010. The change in interest income was mainly due to the decreased interest rates on our cash deposits in interest bearing accounts during the three-month period ended March 31, 2011 compared to the three month-period ended March 31, 2010.
Interest and Finance Costs
Interest and finance costs increased by 6.2%, or $1.1 million, to $18.8 million during the three-month period ended March 31, 2011, from $17.7 million during the three-month period ended March 31, 2010. The increase is partly attributable to increased financing costs incurred in relation to new credit facilities. Interest expense increased to $4.6 million during the three-month period ended March 31, 2011, from $4.4 million during the three-month period ended March 31, 2010 due to increased LIBOR during the period partially offset by the decreased average loan balances outstanding. The costs relating to our interest rate swap agreements was $13.6 million and $13.6 million during the three-month period ended March 31, 2011 and March 31, 2010, respectively.
Gain (Loss) on Derivative Instruments
The fair value of our 11 derivative instruments which were outstanding as of March 31, 2011 equates to the amount that would be paid by us or to us, should those instruments be terminated. As of March 31, 2011, the fair value of these 11 interest rate swaps in aggregate amounted to a liability of $95.7 million. Ten of the 11 interest rate derivative instruments that were outstanding as at March 31, 2011, qualified for hedge accounting and the effective portion in the change of their fair value is recorded in "Other comprehensive loss" in stockholders' equity. For the three-month period ended March 31, 2011, a gain of $9.4 million has been included in "Other comprehensive loss" in stockholders' equity and a gain of $2.8 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 swaps during the three-month period ended March 31, 2011.
Cash Flows
Three-month period ended March 31, 2011 and March 31, 2010
Three-month period
Condensed cash flows ended
March 31,
----------------------
(Expressed in millions of U.S. dollars) 2010 2011
---------- ----------
Net Cash Provided by Operating Activities $ 28.7 $ 39.4
Net Cash Provided by (Used in) Investing Activities $ 5.0 $ (158.9)
Net Cash Used in Financing Activities $ (28.0) $ (34.7)
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended March 31, 2011 increased by $10.7 million to $39.4 million, compared to $28.7 million for the three-month period ended March 31, 2010. The increase was primarily attributable to (a) increased cash from operations of $14.0 million deriving from escalating charter rates and (b) favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue of $3.4 million (representing the difference between cash received in that period and revenue recognized on a straight-line basis), which were partly offset by the increased dry-docking payments of $1.7 million.
Net Cash Provided by (Used in) Investing Activities
Net cash used in investing activities was $158.9 million in the three-month period ended March 31, 2011, which consists of (a) $96.4 million advance payments for the construction and purchase of five newbuild vessels, (b) $74.9 million in payments for the acquisition of eight second-hand vessels, (c) $6.3 million of advances we received for the sale of three vessels and (d) $6.1 million we received from the sale of governmental bonds.
Net cash provided by investing activities was $5.0 million in the three-month period ended March 31, 2010, which consists of (a) $6.8 million in aggregate we received from the sale of vessel MSC Germany and the advance receipt from the buyers of MSC Toba and (b) $1.8 million in payments for the construction cost of MSC Navarino.
Net Cash Used in Financing Activities
Net cash used in financing activities was $34.7 million in the three-month period ended March 31, 2011, which mainly consists of (a) $19.4 million of indebtedness that we repaid and (b) $15.1 million we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2010.
Net cash used in financing activities was $28.0 million in the three-month period ended March 31, 2010, which mainly consists of (a) $19.4 million of indebtedness that we repaid and (b) $10.0 million we paid for dividends to our stockholders.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of March 31, 2011, we had a total cash liquidity of $45.9 million, consisting of cash, cash equivalents and restricted cash.
Undrawn Credit Lines
As of March 31, 2011 we had a total of undrawn credit lines of $194 million.
As of May 1, 2011, we had $120.0 million in an undrawn credit line.
Debt-free vessels
As of May 1, 2011, the following vessels are free of debt:
Unencumbered Vessels in the water
(refer to fleet list in page 12 for full charter details)
TEU
Vessel Name Year Built Capacity
---------------- ---------- ----------
HYUNDAI NAVARINO 2010 8,531
SEALAND MICHIGAN 2000 6,648
MSC AUSTRIA 1984 3,584
KARMEN 1991 3,351
RENA 1990 3,351
MARINA 1992 3,351
KONSTANTINA 1992 3,351
AKRITAS 1987 3,152
MSC CHALLENGER 1986 2,633
MSC SUDAN II 1992 2,024
MSC NAMIBIA II 1991 2,023
MSC SIERRA II 1991 2,023
MSC PYLOS 1991 2,020
PROSPER 1996 1,504
MSC TUSCANY 1978 1,468
MSC FADO 1978 1,181
ZAGORA 1995 1,162
HORIZON 1991 1,068
Capital commitments
As of May 1, 2011, we had outstanding commitments relating to our contracted newbuilds aggregating approximately to $858.5 million payable in installments until the vessels are delivered.
Conference Call details
On Tuesday, May 24, 2011 at 8:30 a.m. EDT, Costamare's management team will hold a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote "Costamare."
A replay of the conference call will be available until May 31, 2011. The United States replay number is 1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access code required for the replay is: 25306424#
Live webcast:
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com) under the "Investors" section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world's leading owners and providers of containerships for charter. Costamare Inc. has more than 36 years of history in the international shipping industry and a fleet of 58 containerships, with a total capacity of approximately 320,000 TEU, including 10 newbuilds on order aggregating approximately 90,000 TEU. 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 May 1, 2011, about our fleet of 58 containerships. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
Average
Daily
Charter
Rate
Until
Earliest
Current Expiry
Daily of
Charter Charter
Time Hire Expiration (U.S.
Vessel Year Capacity Charter (U.S. of dollars)
Name Charterer Built (TEU) Term(1) dollars) Charter(1) (2)
--------- --------- ---- ------ --------- --------- ----------- --------
1 COSCO
GUANG- December
ZHOU COSCO 2006 9,469 12 years 36,400 2017 36,400
2 COSCO
NINGBO COSCO 2006 9,469 12 years 36,400 January 36,400
2018
3 COSCO February
YANTIAN COSCO 2006 9,469 12 years 36,400 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 32,400(3) May 2018 37,351
6 HYUNDAI
NAVARINO HMM 2010 8,531 1.2 years 44,000 March 2012 44,000
7 MAERSK A.P.
KAWASAKI Moller- December
(i) Maersk 1997 7,403 10 years 37,000 2017 37,000
A.P.
8 MAERSK Moller- December
KURE(i) Maersk 1996 7,403 10 years 37,000 2017 37,000
9 MAERSK A.P. February
KOKURA Moller-
(i) Maersk 1997 7,403 10 years 37,000 2018 37,000
A.P.
10 SEALAND Moller-
NEW YORK Maersk 2000 6,648 11 years 34,875(4) March 2018 28,422
A.P.
11 MAERSK Moller-
KOBE Maersk 2000 6,648 11 years 34,875(5) May 2018 31,899
12 SEALAND A.P.
WASH- Moller
INGTON Maersk 2000 6,648 11 years 34,875(6) June 2018 28,502
A.P.
13 SEALAND Moller-
MICHIGAN Maersk 2000 6,648 11 years 29,875(7) August 2018 26,167
A.P.
14 SEALAND Moller- October
ILLINOIS Maersk 2000 6,648 11 years 34,875(8) 2018 28,573
A.P.
15 MAERSK Moller- November
KOLKATA Maersk 2003 6,644 11 years 34,500(9) 2019 33,195
A.P.
16 MAERSK Moller- February
KINGSTON Maersk 2003 6,644 11 years 34,875(10) 2020 33,356
A.P.
17 MAERSK Moller-
KALAMATA Maersk 2003 6,644 11 years 34,875(11) April 2020 33,401
18 ZIM NEW
YORK ZIM 2002 4,992 10 years 18,189(12) July 2012 33,277
19 ZIM
SHANGHAI ZIM 2002 4,992 10 years 18,189(13) August 2012 32,256
20 ZIM
PIRAEUS
(ii) ZIM 2004 4,992 10 years 20,013(14) March 2014 25,066
21 OAKLAND Hapag
EXPRESS Lloyd 2000 4,890 8 years 35,000(15) September 2016 31,061
22 NEW YORK Hapag October
EXPRESS Lloyd 2000 4,890 8 years 35,000(15) 2016 31,048
23 SINGAPORE Hapag
EXPRESS Lloyd 2000 4,890 8 years 35,000(15) July 2016 31,078
24 MSC
MANDRAKI MSC 1988 4,828 2.8 years 22,200(16) August 2012 22,200
25 MSC
MYKONOS MSC 1988 4,828 3.2 years 22,200(17) September 2012 22,200
26 MSC
ANTWERP MSC 1993 3,883 4.3 years 20,000(18) August 2013 17,541
27 MSC
WASHINGTON MSC 1984 3,876 3.2 years 20,000(19) February 2013 18,183
28 MSC
KYOTO MSC 1981 3,876 3.1 years 20,000(20) June 2013 18,087
29 MSC
AUSTRIA MSC 1984 3,584 3.7 years 21,100(21) November 2012 18,944
Sea
30 KARMEN Consortium 1991 3,351 1 year 19,400 April 2012 19,400
31 RENA CSCL 1990 3,351 0.1 years 17,000 May 2011 17,000
32 MARINA PO
Hainan 1992 3,351 1 year 18,000 March 2012 18,000
33 KONSTAN-
TINA KMTC 1992 3,351 0.1 year 18,750 May 2012 18,750
Hapag
34 AKRITAS Lloyd 1987 3,152 1 year 11,000 August 2011 11,000
35 GARDEN
(iii) Evergreen 1984 2,922 5 years 15,200 November 2012 15,200
36 GENIUS
I(iii) Evergreen 1984 2,922 3.3 years 15,200 November 2012 15,200
37 GATHER
(iii) Evergreen 1984 2,922 5 years 15,200 November 2012 15,200
38 GIFTED
(iv) Evergreen 1984 2,922 2.4 years 15,700 December 2011 15,700
39 MSC
CHALLENGER MSC 1986 2,633 2 years 10,000 September 2012 10,000
40 MSC
SUDAN II MSC 1992 2,024 3 years 14,000(22) June 2012 12,411
41 MSC
NAMIBIA II MSC 1991 2,023 4.8 years 14,000(23) July 2012 12,840
42 MSC
SIERRA II MSC 1991 2,023 3.7 years 14,000(24) May 2012 12,868
43 MSC PYLOS MSC 1991 2,020 1 year 9,200 January 2012 9,200
44 PROSPER TS 1996 1,504 1 year 10,500 March 2012 10,500
Lines
45 MSC
TUSCANY MSC 1978 1,468 1.9 years 7,920 August 2012 7,920
46 MSC FADO MSC 1978 1,181 2 years 7,400 May 2012 7,400
47 ZAGORA I.Messina 1995 1,162 0.5 years 7,500 July 2011 7,500
48 HORIZON OACL 1991 1,068 7.1 years 10,050 April 2012 10,050
Newbuilds
Expected Approximate
Vessel Name Shipyard Charterer Delivery Capacity
(TEU)
--------------------- --------- ---------------- ----------
1 Hull S4010 Sungdong Shipbuilding MSC 4th Quarter 2012 9,000
--------------------- --------- ---------------- ----------
2 Hull S4011 Sungdong Shipbuilding MSC 4th Quarter 2012 9,000
--------------------- --------- ---------------- ----------
3 Hull S4020 Sungdong Shipbuilding Evergreen 1st Quarter 2013 8,800
--------------------- --------- ---------------- ----------
4 Hull S4021 Sungdong Shipbuilding Evergreen 1st Quarter 2013 8,800
--------------------- --------- ---------------- ----------
5 Hull S4022 Sungdong Shipbuilding Evergreen 2nd Quarter 2013 8,800
--------------------- --------- ---------------- ----------
6 Hull S4023 Sungdong Shipbuilding Evergreen 2nd Quarter 2013 8,800
--------------------- --------- ---------------- ----------
7 Hull S4024 Sungdong Shipbuilding Evergreen 3rd Quarter 2013 8,800
--------------------- --------- ---------------- ----------
8 H1068A Jiangnan Changxing MSC November 2013 9,000
--------------------- --------- ---------------- ----------
9 H1069A Jiangnan Changxing MSC December 2013 9,000
--------------------- --------- ---------------- ----------
10 H1070A Jiangnan Changxing MSC January 2014 9,000
--------------------- --------- ---------------- ----------
(1) Charter terms and expiration dates are based on the earliest date
charters could expire.
(2) This average rate is calculated based on contracted charter rates for
the days remaining between May 1, 2011 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 escalates on August 31, 2011 to $37,596 per day
until the earliest redelivery date.
(4) This charter rate changes on January 1, 2012 to $30,375 and on May 8,
2014 to $26,100 per day until the earliest redelivery date.
(5) This charter rate changes on June 1, 2011 to $42,679 per day, on
January 1, 2012 to $38,179 per day and on June 30, 2014 to $26,100
per day until the earliest redelivery date.
(6) This charter rate changes on January 1, 2012 to $30,375 and on
August 24, 2014 to $26,100 per day until the earliest redelivery
date.
(7) This charter rate changes on January 1, 2012 to $25,375 per day and
on October 20, 2014 to $26,100 per day until the earliest redelivery
date.
(8) This charter rate changes on January 1, 2012 to $30,375 per day and
on December 4, 2014 to $26,100 per day until the earliest redelivery
date.
(9) This charter rate changes on June 1, 2011 to $42,990 per day, on
January 1, 2012 to $38,490 per day and on January 13, 2016 to $26,100
per day until the earliest redelivery date.
(10) This charter rate changes on June 1, 2011 to $42,961 per day, on
January 1, 2012 to $38,461 per day and on April 28, 2016 to $26,100
per day until the earliest redelivery date.
(11) This charter rate changes on June 1, 2011 to $42,918 per day, on
January 1, 2012 to $38,418 per day and on June 11, 2016 to $26,100
per day until the earliest redelivery date.
(12) This charter rate changes on January 1, 2012 to $16,205 per day and
on July 1, 2012 to $23,150 per day until the earliest redelivery
date. In addition, if the charterer does not exercise its unilateral
option to extend the term, the charterer is required to make a
one-time payment at the earliest redelivery of approximately
$6.9 million.
(13) This charter rate changes on January 1, 2012 to $16,205 per day and
on July 1, 2012 to $23,150 per day until the earliest redelivery
date. In addition, if the charterer does not exercise its unilateral
option to extend the term, the charterer is required to make a
one-time payment at the earliest redelivery of approximately
$6.9 million.
(14) This charter rate changes on January 1, 2012 to $18,150 per day, on
May 8, 2012 to $18,274 per day and on January 1, 2013 to $22,150 per
day until the earliest redelivery date. In addition, the charterer is
required to repay the remaining amount accrued during the reduction
period, or approximately $5.0 million, no later than July 2016.
(15) This charter rate changes on January 1, 2012 to $30,500 per day until
the earliest redelivery.
(16) This charter rate is applicable until November 2, 2011. The "market
rate" is payable for the remainder of the term. In order to calculate
the average charter rate, we assumed that the charter expires on
November 2, 2011.
(17) This charter rate is applicable until July 14, 2011. The "market
rate" is payable for the remainder of the term. In order to calculate
the average charter rate, we assumed that the charter expires on
July 14, 2011.
(18) This charter rate changes on May 15, 2011 to $17,500 per day until
the earliest redelivery.
(19) This charter rate changes on December 14, 2011 to $17,250 per day
until the earliest redelivery date.
(20) This charter rate changes on December 19, 2011 to $17,250 per day
until the earliest redelivery date.
(21) This charter rate changes on December 29, 2011 to $17,250 per day
until the earliest redelivery date.
(22) This charter rate changes on July 27, 2011 to $12,000 per day until
the earliest redelivery date.
(23) This charter rate changes on December 17, 2011 to $11,500 per day
until the earliest redelivery date.
(24) This charter rate changes on December 20, 2011 to $11,250 per day
until the earliest redelivery date.
(i) Charterers have unilateral options to extend the charters of the
vessels for two periods of 30 months +/-90 days at a rate of
$41,700 per day.
(ii) Charterer has a unilateral option to extend the charter of the vessel
for a period of 12 months +/-60 days at a rate of $27,500 per day.
(iii) Charterers have unilateral options to extend the charters of the
vessels for periods until 2014, at a rate of $14,000 per day.
(iv) Charterers have a unilateral option to extend the charter of the
vessel for a period of one year +/-30 days at a rate of $14,000 per
day.
COSTAMARE INC.
Consolidated Statements of Income
Three-month period
ended March 31,
(Expressed in thousands of U.S. dollars, except ----------------------
share and per share amounts) 2010 2011
---------- ----------
REVENUES:
Voyage revenues $ 89,024 $ 85,961
EXPENSES:
Voyage expenses (390) (1,098)
Voyage expenses - related parties - (646)
Vessels' operating expenses (25,789) (27,503)
General and administrative expenses (601) (1,181)
Management fees - related parties (2,732) (3,483)
Amortization of dry-docking and special survey
costs (1,992) (1,911)
Depreciation (16,859) (18,445)
Gain (Loss) on sale of vessels 2,295 -
Foreign exchange gains / (losses) (93) 90
---------- ----------
Operating income $ 42,863 $ 31,784
---------- ----------
OTHER INCOME (EXPENSES):
Interest income $ 410 $ 191
Interest and finance costs (17,671) (18,744)
Other 79 (14)
Gain (loss) on derivative instruments (998) 4,731
---------- ----------
Total other expenses $ (18,180) $ (13,836)
---------- ----------
---------- ----------
Net Income $ 24,683 $ 17,948
========== ==========
Earnings per share
Basic and diluted net income per share $ 0.53 $ 0.30
========== ==========
Basic and diluted weighted average number of common
shares 47,000,000 60,300,000
========== ==========
COSTAMARE INC.
Consolidated Balance Sheets
As of As of
December 31, March 31,
(Expressed in thousands of U.S. dollars) 2010 2011
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 159,774 $ 5,541
Restricted cash 5,121 4,599
Receivables 3,360 2,119
Inventories 9,534 15,146
Due from related parties 1,297 2,118
Fair value of derivatives 458 2,377
Insurance claims receivable 747 2,024
Investments 6,080 -
Accrued charter revenue 22,413 17,276
Prepayments and other 2,428 3,780
Vessels held for sale - 8,233
----------- -----------
Total current assets $ 211,212 $ 63,213
----------- -----------
FIXED ASSETS, NET:
Advances for vessels acquisitions $ 3,830 $ 96,432
Vessels, net 1,531,610 1,585,581
----------- -----------
Total fixed assets, net $ 1,535,440 $ 1,682,013
----------- -----------
OTHER NON-CURRENT ASSETS:
Deferred charges, net 30,867 32,233
Restricted cash 36,814 35,768
Accrued charter revenue 14,449 11,598
----------- -----------
Total assets $ 1,828,782 $ 1,824,825
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 114,597 $ 130,060
Accounts payable 4,128 13,647
Due to related parties - 1,871
Accrued liabilities 7,761 11,554
Unearned revenue 2,580 3,083
Fair value of derivatives 53,880 57,449
Other current liabilities 1,842 1,767
----------- -----------
Total current liabilities $ 184,788 $ 219,431
----------- -----------
NON-CURRENT LIABILITIES
Long-term debt, net of current portion $ 1,227,140 $ 1,192,277
Fair value of derivatives, non current portion 54,062 38,298
Unearned revenue, net of current portion 650 414
----------- -----------
Total non-current liabilities $ 1,281,852 $ 1,230,989
----------- -----------
----------- -----------
COMMITMENTS AND CONTINGENCIES $ - $ -
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock $ 6 $ 6
Additional paid-in capital 519,971 519,971
Accumulated other comprehensive loss (82,895) (73,505)
Accumulated deficit (74,940) (72,067)
----------- -----------
Total stockholders' equity (deficit) $ 362,142 $ 374,405
----------- -----------
----------- -----------
Total liabilities and stockholders' equity $ 1,828,782 $ 1,824,825
=========== ===========
COSTAMARE INC.
Statements of Cash Flows
Three-month period
ended March 31,
----------------------
(Expressed in thousands of U.S. dollars) 2010 2011
---------- ----------
Cash Flows from Operating Activities:
Net income: $ 24,863 $ 17,948
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 16,859 18,445
Amortization of financing costs 204 663
Amortization of deferred dry-docking and special
surveys 1,992 1,911
Loss (gain) on derivative instruments 998 (4,731)
Amortization of unearned revenue (160) (161)
(Gain) Loss on sale of vessels (2,295) -
Loss on sale of available for sale securities - 7
Changes in operating assets and liabilities:
Receivables $ 296 $ 1,241
Due from related parties 174 (821)
Inventories 1,717 (5,612)
Claims receivable 286 (1,277)
Prepayments and other (2,137) (1,352)
Accounts payable (2,028) 3,242
Due to related parties 260 1,871
Accrued liabilities (72) 3,791
Unearned revenue 563 428
Other liabilities (1,061) (75)
Dry-dockings (2,423) (4,090)
Accrued charter revenue (9,117) 7,988
---------- ----------
Net Cash from Operating Activities $ 28,739 $ 39,416
---------- ----------
Cash Flows from Investing Activities:
Advances for vessels' acquisitions $ (1,722) $ (96,432)
Vessel acquisitions/Addition to vessel cost - (74,843)
Proceeds from sale of available for sale securities - 6,082
Proceeds from the sale of vessels 6,771 6,277
---------- ----------
Net Cash provided by (Used in) Investing Activities $ 5,049 $ (158,916)
---------- ----------
Cash Flows from Financing Activities:
Repayment of long-term debt $ (19,400) $ (19,400)
Payments for financing costs - (1,826)
Dividends paid (10,000) (15,075)
(Increase) decrease in restricted cash 1,420 1,568
---------- ----------
Net Cash used in Financing Activities $ (27,980) $ (34,733)
---------- ----------
Net increase (decrease) in cash and cash
equivalents $ 5,808 $ (154,233)
Cash and cash equivalents at beginning of period 12,282 159,774
Cash and cash equivalents at end of period $ 18,090 $ 5,541
========== ==========
Contact Information:
Contacts
Company Contact:
Gregory Zikos
Chief Financial Officer
Konstantinos Tsakalidis
Business Development
Costamare Inc., Athens, Greece
Tel: (+30) 210-949-0000
Email: ir@costamare.com
www.costamare.com
Investor Relations Advisor/ Media Contact:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
Tel: 212-661-7566
Email: costamare@capitallink.com