SOURCE: Costamare Inc.

Costamare Inc.

May 23, 2011 16:28 ET

Costamare Inc. Reports First Quarter 2011 Results

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