SOURCE: Costamare Inc.

Costamare Inc.

February 16, 2011 16:13 ET

Costamare Inc. Reports Fourth Quarter and Year End 2010 Results

ATHENS, GREECE--(Marketwire - February 16, 2011) - Costamare Inc. ("Costamare") (NYSE: CMRE), a leading international owner of containerships, today reported unaudited financial results for the fourth quarter and for the year ended December 31, 2010.

Highlights

--  Voyage revenues of $85.7 million and $353.2 million for the three
    months and the year ended December 31, 2010, respectively.

--  Adjusted EBITDA of $56.2 million and $223.6 million for the three
    months and the year ended December 31, 2010, respectively.

--  Net income of $11.8 million or $0.21 per share and $81.2 million or
    $1.65 per share for the three months and the year ended December 31,
    2010, respectively.

--  Adjusted Net Income of $18.0 million or $0.33 per share and $73.8
    million or $1.50 per share for the three months and the year ended
    December 31, 2010, respectively.

--  Finalized the financing arrangements for the three newbuilding
    contracts which were identified in the Initial Public Offering
    prospectus in November 2010. The containerships, each with a capacity
    of approximately 9,000 TEU, will be constructed by Shanghai Jiangnan
    Changxing Heavy Industry Co., Ltd. for a contract price of $95.1
    million per vessel and are scheduled to be delivered between November
    2013 and January 2014. We have entered into time charter agreements
    with MSC for the employment of each vessel immediately upon delivery,
    for a duration of ten years at a daily charter rate of $43,000.

--  Contracted with Sungdong Shipbuilding & Marine Engineering Co., Ltd.
    for the construction and purchase of two newbuild containerships, each
    of approximately 9,000 TEU capacity. The two newbuildings are expected
    to be delivered by the end of 2012. We have entered into time charter
    agreements with MSC for the employment of each vessel immediately upon
    delivery, for duration of ten years. Both the contract price and the
    daily charter rate are similar to those agreed regarding the three
    9,000 TEU vessels contracted with China Shipbuilding Trading Company
    Limited and Shanghai Jiangnan Changxing Heavy Industry Co., Ltd. and
    chartered to MSC for a period of 10 years. We expect to finance the
    acquisition with cash on hand and a new credit facility, without using
    any currently available credit lines.

--  Agreed to purchase the container vessels Oranje, of 2,020 TEU capacity,
    built in 1991 and Zagora of 1,162 TEU capacity, built in 1995, for a
    purchase price of $7.5 million and $8.3 million, respectively. The two
    second-hand vessels were delivered to us in January 2011 and were
    acquired using existing cash.

--  Agreed to purchase the container vessel  Forever Prosperity, of 1,504
    TEU capacity, built in 1996 at a purchase price of $9.5 million. The
    second-hand vessel will be acquired using existing cash.

--  Agreed to purchase three container vessels, with an approximate
    capacity of 2,020 TEU per vessel, two of them built in 1991 and one of
    them built in 1992, for an aggregate purchase price of $30.0 million.
    All three secondhand vessels will be acquired using existing cash.
    Concurrently agreed to sell the container vessels MSC Namibia, of 1,654
    TEU capacity and built in 1977, MSC Sudan, of 1,630 TEU capacity and
    built in 1976 and MSC Sierra, of 1,630 TEU capacity and built in 1977,
    for an aggregate sale price of approximately $21.0 million.  The three
    acquired vessels are expected to be delivered before the end of March
    2011 and will substitute the MSC Namibia, MSC Sudan and MSC Sierra in
    their respective charter party agreements.

--  In November 2010 we took delivery of two 3,351 TEU containerships, the
    Karmen and the Rena, that we agreed to purchase in September 2010. Both
    containerships were acquired using existing cash.

--  In January 2011 we declared a dividend for the fourth quarter ended
    December 31, 2010, of $0.25 per share which was paid on February 4,
    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 January 28,
    2011. This was the first cash dividend we have declared since our
    Initial Public Offering on November 4, 2010.


              Three-months and Year Ended December 31, 2010
                            Financial Summary


                                                      Three-months ended
                            Year ended December 31,      December 31,
                            ----------------------- -----------------------
(Expressed in thousands of
 U.S. dollars, except share
 and per share amounts):       2009        2010        2009        2010
                            ----------- ----------- ----------- -----------


Voyage revenue              $   399,939 $   353,151 $    94,927 $    85,687
Adjusted EBITDA (1)         $   244,386 $   223,609 $    51,713 $    56,228

Adjusted Net Income (1)     $    81,107 $    73,757 $    11,543 $    18,030
Weighted Average number 
 of shares                   47,000,000  49,113,425  47,000,000  55,384,783
Adjusted Earnings per share
 (1)                        $      1.73 $      1.50 $      0.25 $      0.33

EBITDA                      $   280,208 $   231,076 $    62,772 $    50,001
Net Income                  $   116,929 $    81,224 $    22,602 $    11,803
Weighted Average number
 of shares                   47,000,000  49,113,425  47,000,000  55,384,783
Earnings per share          $      2.49 $      1.65 $      0.48 $      0.21


(1) Adjusted net income, adjusted earnings per share and adjusted EBITDA
    are non-GAAP measures. Refer to the reconciliation of net income to
    adjusted net income and net income to adjusted EBITDA.





                             Non-GAAP Measure
            Reconciliation of Net Income to Adjusted Net Income


                                                     Three-months ended
                            Year ended December 31,     December 31,
                            ----------------------  ----------------------
(Expressed in thousands of
 U.S. dollars, except share
 and per share data)           2009        2010        2009        2010
                            ----------  ----------  ----------  ----------

Net Income                  $  116,929  $   81,224  $   22,602  $   11,803
Accrued charter revenue        (22,374)    (13,596)    (10,404)      1,028
Gain (Loss) on sale of
 vessels                        (2,854)     (9,588)       (337)          -
Charter agreement early
 termination fee                     -       9,500           -       9,500
Realized gain (Loss) on
 Euro/USD forward contracts     (4,999)      1,758      (1,488)        203
Gain (loss) on derivative
 instruments                    (5,595)      4,459       1,170      (4,504)

                            ----------  ----------  ----------  ----------
Adjusted Net income         $   81,107  $   73,757  $   11,543  $   18,030
                            ==========  ==========  ==========  ==========
Adjusted Earnings per Share $     1.73  $     1.50  $     0.25  $     0.33
                            ==========  ==========  ==========  ==========
Weighted average number of
 shares                     47,000,000  49,113,425  47,000,000  55,384,783
                            ==========  ==========  ==========  ==========

* 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 information 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. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months and the year ended December 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.


              Reconciliation of Net Income to Adjusted EBITDA


                                                     Three-months ended
                            Year ended December 31,      December 31,
                            ----------------------  ----------------------
(Expressed in thousands of
 U.S.dollars)
                               2009        2010        2009        2010
                            ----------  ----------  ----------  ----------


Net Income                  $  116,929  $   81,224  $   22,602  $   11,803
Interest and finance costs      86,817      71,949      20,374      17,844
Interest income                 (2,672)     (1,449)       (171)       (288)
Depreciation                    71,148      70,887      17,921      18,314
Amortization of dry-docking
 and special survey costs        7,986       8,465       2,046       2,328
EBITDA                         280,208     231,076      62,772      50,001
Accrued charter revenue        (22,374)    (13,596)    (10,404)      1,028
Gain (Loss) on sale of
 vessels                        (2,854)     (9,588)       (337)          -
Realized gain (Loss) on
 Euro/USD forward contracts     (4,999)      1,758      (1,488)        203
Charter agreement early
 termination fee                     -       9,500           -       9,500
Gain (loss) on derivative
 instruments                    (5,595)      4,459       1,170      (4,504)
Adjusted EBITDA             $  244,386  $  223,609  $   51,713  $   56,228
                            ==========  ==========  ==========  ==========




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 and non-cash changes in "Accrued charter revenue" deriving from escalating charter rates under which certain of our vessels operate; the "Accrued charter revenue" is attributed to the time difference between the revenue recognition and the cash collection. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted EBITDA is useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted EBITDA is useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of 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 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 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.


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 information 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. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months and the year ended December 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.

Mr. Gregory Zikos, CFO of Costamare Inc., commented:

During the last months we have been successfully implementing our fleet renewal and expansion strategy.

We have finalized and signed new ship building contracts for a total of five 9,000 TEU ships, all of which have been chartered for a period of 10 years at accretive rates; these vessels are expected to contribute contracted revenues in excess of $ 760 million. At the same time we bought in total 10 second hand vessels at attractive prices, 3 of which are expected to substitute 14 to 15 years older vessels for a minimal incremental cost of $ 3 million per ship.

The total value of our deals exceeds $ 570 million. As of October 2010, before going public, we had 41 ships in the water with a total capacity of 211,882 TEUs. Today, we have 45 ships in the water, with 6 more vessels expected to be delivered, and an order book of five 9,000 TEUs ships, totaling 275,728 TEUs.

Regarding chartering, we are in a market that has been rising as we expected; although charterers want to fix for longer periods, for second hand vessels we are reluctant to commit to more than 6 months employment, and we are trying to postpone chartering to the last possible moment. We expect however to finalize our chartering arrangements over the next month.

Looking into 2011 we will continue our focus on growing our fleet through attractive acquisitions that create real shareholder value. Our cash at hand of $ 208 million by year end, together with undrawn credit lines of $ 194 million and a total of 19 ships which as of today are free of debt, place us at a unique position to grow.

Finally, in line with our dividend policy, we have declared and paid a dividend of $0.25 per share for the fourth quarter 2010. This was the first cash dividend the Company paid since our initial public offering on November 4, 2010.

With a track record of uninterrupted profitability, and 35 years' experience in shipping, including 25 years in containers, we are confident about our short and long-term potential and we remain excited about the many opportunities that we believe lie ahead for our Company.

Results of Operations

Three-month period ended December 31, 2010 compared to the three-month period ended December 31, 2009

During the three-month periods ended December 31, 2010 and 2009, we had an average of 42.0 and 44.4 vessels, respectively, in our fleet. In the three-month period ended December 31, 2010, we accepted delivery of the vessels Karmen and Rena with an aggregate TEU capacity of 6,702. In the three-month period ended December 31, 2009 we sold the vessel Liguria with TEU capacity of 956. In the three-month period ended December 31, 2010 and 2009 our fleet operating days totaled 3,864 and 4,085 days, respectively. Operating 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 December 31,
(Expressed in millions of   ----------------------
 U.S. dollars, except
 percentages)                                                   Percentage
                               2009        2010       Change      Change
                            ----------  ----------  ----------  ----------


Voyage revenue              $     94.9  $     85.7  $     (9.2)      (9.7%)
Voyage expenses                   (0.4)       (0.5)        0.1        25.0%
Voyage expenses - related
 parties                             -        (0.4)        0.4           -
Vessels operating expenses       (26.6)      (26.1)       (0.5)      (1.9%)
General and administrative
 expenses                         (1.0)       (0.4)       (0.6)     (60.0%)
Management fees - related
 parties                          (2.9)       (3.1)        0.2         6.9%
Amortization of dry-docking
 and special survey costs         (2.0)       (2.3)        0.3        15.0%
Depreciation                     (17.9)      (18.3)        0.4         2.2%
Charter agreement early
 termination fee                     -        (9.5)        9.5           -
Gain (Loss) on sale of
 vessels                           0.3           -        (0.3)    (100.0%)
Foreign exchange gains /
 (losses)                         (0.1)       (0.3)        0.2       200.0%
Interest income                    0.2         0.3         0.1        50.0%
Interest and finance costs       (20.4)      (17.8)       (2.6)     (12.7%)
Other                             (0.4)          -        (0.4)    (100.0%)
Gain (loss) on derivative
 instruments                      (1.1)        4.5         5.6       509.1%
                            ----------  ----------
Net Income                  $     22.6  $     11.8   $    (10.8)    (47.8%)
                            ==========  ==========






                            Three-month period ended
                            December 31,
                            ----------------------              Percentage
Fleet operational data         2009        2010       Change      Change
                            ----------  ----------  ----------  ----------


Average number of vessels         44.4        42.0        (2.4)      (5.4%)
Operating days                   4,085       3,864        (221)      (5.4%)
Number of vessels dry-docked         1           3           2          -


Voyage Revenue

Voyage revenue decreased by 9.7%, or $9.2 million, to $85.7 million during the three-month period ended December 31, 2010, from $94.9 million during the three-month period ended December 31, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet during the period. The decrease in operating days was a result of a lower average number of vessels in our fleet during the three-month period ended December 31, 2010 compared to the corresponding period in 2009. The decrease was also attributable to the time charter period extension for eight of our vessels for a four-year period commencing in 2014 at rates on average lower than the existing charter rates.

Voyage Expenses

Voyage expenses increased by 25.0%, or $0.1 million, to $0.5 million during the three-month period ended December 31, 2010, from $0.4 million during the three-month period ended December 31, 2009. The increase was primarily attributable to the off-hire expenses of the container vessels Karmen and Rena which were delivered to us by their sellers in November 2010. Upon her delivery the vessel Karmen underwent a dry-docking and commenced her time charter in late December 2010.

Voyage Expenses - related parties

Voyage expenses - related parties in the amount of $0.4 million represent management fees charged to us by Costamare Shipping Company S.A. as provided under our management agreement. Voyage Expenses - related parties represent a 0.75% charge on our voyage revenues for the period from November 4, 2010 (Initial Public Offering completion) up to December 31, 2010.

Vessels' Operating Expenses

Vessels' operating expenses, which also include the realized gain (loss) under derivative contracts entered into related to foreign currency exposure, decreased by 1.9%, or $0.5 million, to $26.1 million during the three-month period ended December 31, 2010, from $26.6 million during the three-month period ended December 31, 2009. Vessels' operating expenses, excluding the effect of the realized gain (loss) under these derivative contracts, decreased by 8.2%, or $2.3 million, to $25.8 million during the three-month period ended December 31, 2010, from $28.1 million during the three-month period ended December 31, 2009. The decrease was also partly attributable to the decreased fleet operating days during the three-month period ended December 31, 2010 compared to the three-month period ended December 31, 2009.

General and Administrative Expenses

General and administrative expenses decreased by 60.0%, or $0.6 million, to $0.4 million during the three-month period ended December 31, 2010, from $1.0 million during the three-month period ended December 31, 2009. The decrease in the three-month period ended December 31, 2010 was mainly attributable to the decreased legal and advisory expenses charged to us compared to the three-month period ended December 31, 2009. In the three-month period ended December 31, 2009, Shanghai Costamare Ship Management Co. Ltd. charged us the amount of $0.5 million for market analysis and research services. There was not such charge for the three-month period ended December 31, 2010.

Management Fees - related parties

Management fees paid to our managers increased by 6.9%, or $0.2 million, to $3.1 million during the three-month period ended December 31, 2010, from $2.9 million during the three-month period ended December 31, 2009. The increase was attributable to the new daily management fee we paid to our managers subsequent to the completion of our Initial Public Offering on November 4, 2010, offset by the decrease in fleet operating days for the three-month period ended December 31, 2010, compared to the three-month period ended December 31, 2009.

Amortization of Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by 15.0% or $0.3 million, to $2.3 million during the three-month period ended December 31, 2010, from $2.0 million during the three-month period ended December 31, 2009. The increase was mainly attributable to the amortization expense charged for four of our vessels that underwent their initial dry-docking in the year ended December 31, 2010, partially offset by 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. During the three-month period ended December 31, 2010 and 2009, three vessels and one vessel, respectively, underwent their special surveys.

Depreciation

Depreciation expense increased by 2.2%, or $0.4 million, to $18.3 million during the three-month period ended December 31, 2010, from $17.9 million during the three-month period ended December 31, 2009. 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 and to the vessels Karmen and Rena that were delivered to us in November 2010. MSC Liguria, which was sold in the three-month period ended December 31, 2009 was fully depreciated as of the date it was sold.

Charter agreement early termination fee

The Charter agreement early termination fee of $9.5 million represents a one-time payment made to the charterer of MSC Navarino (renamed to Hyundai Navarino in January 2011) in December 2010, compensating the charterer MSC for the early termination of the charter party agreement of MSC Navarino. The vessel was redelivered to us by the charterer on January 28, 2011 and on January 30, 2011 she was delivered to charterers HMM for a daily charter rate of $44,000, compared to a daily charter rate of $22,000 under the MSC charter party agreement.

Gain on Sale of Vessels

In the three-month period ended December 31, 2009, we recorded a gain of $0.3 million from the sale of vessel MSC Liguria. During the three-month period ended December 31, 2010 no vessels were sold.

Foreign Exchange Gains / (Losses)

Foreign exchange losses were $0.3 million during the three-month period ended December 31, 2010, compared to losses of $0.1 million during the three-month period ended December 31, 2009, representing a change of $0.2 million resulting from unfavorable currency exchange rate movements between the U.S. dollar and the Euro.

Interest Income

During the three-month period ended December 31, 2010 interest income increased by 50.0%, or $0.1 million, to $0.3 million, from $0.2 million during the three-month period ended December 31, 2009. The change in interest income was mainly due to the increased average cash balance held by us during the three-month period ended December 31, 2010 compared to the three-month period ended December 31, 2009.

Interest and Finance Costs

Interest and finance costs decreased by 12.7%, or $2.6 million, to $17.8 million during the three-month period ended December 31, 2010, from $20.4 million during the three-month period ended December 31, 2009. Interest expense decreased to $5.0 million during the three-month period ended December 31, 2010, from $8.1 million during the three-month period ended December 31, 2009 due to decreased average loan balances outstanding. The costs relating to our interest rate swap agreements increased to $12.1 million during the three-month period ended December 31, 2010, from $9.8 million during the three-month period ended December 31, 2009, due to the increased difference between market rates and fixed rates.

Gain (Loss) on Derivative Instruments

The fair value of our 11 derivative instruments which were outstanding as of December 31, 2010 equates to the amount that would be paid by us or to us should those instruments be terminated. As of December 31, 2010, the fair value of these 11 interest rate swaps in aggregate amounted to a liability of $107.9 million. Ten of the 11 interest rate derivative instruments that were outstanding as at December 31, 2010, 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 December 31, 2010, a gain of $25.6 million has been included in "Other comprehensive loss" in stockholders' equity and a gain of $4.9 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 December 31, 2010.

Cash Flows

Three-month periods ended December 31, 2010 and December 31, 2009



                                                Three-month period ended
Condensed cash flows                            December  31,
                                                --------------------------
(Expressed in millions of U.S. dollars)             2009          2010
                                                ------------  ------------
Net Cash Provided by Operating Activities       $       43.5  $       39.0
Net Cash Used in Investing Activities           $      (22.7) $      (26.3)
Net Cash Provided by (Used in) Financing
 Activities                                     $      (25.7) $      116.2



Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended December 31, 2010 decreased by $4.5 million to $39.0 million, compared to $43.5 million for the three-month period ended December 31, 2009. The decrease was primarily attributable to (a) increased payments for dry-dockings of $1.2 million in the three-month period ended December 31, 2010 compared to the three-month period ended December 31, 2009, (b) a one-time payment of $9.5 million in December 2010 to the charterers of MSC Navarino for the early redelivery of the vessel; partly offset by the decreased payments for interest (including swap payments) of $3.1 million in the three-month period ended December 31, 2010 compared to the three-month period ended December 31, 2009

Net Cash Used in Investing Activities

Net cash used in investing activities was $26.3 million in the three-month period ended December 31, 2010, which consists of (a) $22.5 million in payments for the acquisition of two vessels and (b) $3.8 million advance payments for the acquisition of four vessels.

Net cash used in investing activities was $22.7 million in the three-month period ended December 31, 2009, which consists of (a) $1.8 million we received from the sale of one vessel and (b) $24.5 million in payments to the shipyard for the construction cost of MSC Navarino.

Net Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities was $116.2 million in the three-month period ended December 31, 2010, which mainly consists of (a) $30.4 million of indebtedness that we repaid, (b) $148.8 million net proceeds we received from our Initial Public Offering in November 2010, net of underwriting commissions and (c) $1.6 million in payments for costs related to our Initial Public Offering.

Net cash used in financing activities was $25.7 million in the three-month period ended December 31, 2009, which mainly consists of (a) $55.2 million of indebtedness that we repaid and (b) $30.0 million of proceeds drawn under our loan facility.

Results of Operations

Year ended December 31, 2010 compared to the year ended December 31, 2009

During the year ended December 31, 2010, we had an average of 42.4 vessels in our fleet, compared to an average of 47.3 vessels in our fleet during 2009. In 2010 we acquired the newbuild vessel MSC Navarino and the second-hand vessels Karmen and Rena with an aggregate TEU capacity of 15,233, and we sold four vessels with an aggregate TEU capacity of 10,766. In 2009, we acquired the vessels Gifted and Genius with an aggregate TEU capacity of 5,844, and we sold 10 vessels with an aggregate TEU capacity of 18,333. In 2010 our fleet operating days totaled 15,488 days. In 2009 our fleet operating days totaled 17,279 days. Operating days are the primary driver of voyage revenue and vessels' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.





 (Expressed in millions of  Year ended December 31,
 U.S. dollars,              ----------------------              Percentage
 except percentages)           2009        2010       Change      Change
                            ----------  ----------  ----------  ----------


Voyage revenue              $    399.9  $    353.2  $    (46.7)     (11.7%)
Voyage expenses                   (3.1)       (2.1)       (1.0)     (32.3%)
Voyage expenses - related
 parties                             -        (0.4)        0.4          -
Vessels operating expenses      (114.6)     (102.8)      (11.8)     (10.3%)
General and administrative
 expenses                         (1.7)       (1.2)       (0.5)     (29.4%)
Management fees - related
 parties                         (12.2)      (11.3)       (0.9)      (7.4%)
Amortization of dry-docking
 and special survey costs         (8.0)       (8.5)        0.5        6.3%
Depreciation                     (71.1)      (70.9)       (0.2)      (0.3%)
Gain on sale of vessels            2.9         9.6         6.7      231.0%
Charter agreement early
 termination fee                     -        (9.5)        9.5          -
Foreign exchange gains /
 (losses)                         (0.5)       (0.3)       (0.2)     (40.0%)
Interest income                    2.6         1.5        (1.1)     (42.3%)
Interest and finance costs       (86.8)      (71.9)      (14.9)     (17.2%)
Other                              3.9         0.3        (3.6)     (92.3%)
Gain (loss) on derivative
 instruments                       5.6        (4.5)       (10.1)   (180.4%)
                            ----------  ----------
Net Income                  $    116.9  $     81.2  $     (35.7)    (30.5%)
                            ==========  ==========



                            Year ended December 31,
                            ----------------------              Percentage
Fleet operational data         2009        2010       Change      Change
                            ----------  ----------  ----------  ----------

Average number of vessels         47.3        42.4        (4.9)     (10.4%)
Operating days                  17,279      15,488      (1,791)     (10.4%)
Number of vessels dry-docked         6          12           6          -


Voyage Revenue

Voyage revenue decreased by 11.7%, or $46.7 million, to $353.2 million during the year ended December 31, 2010, from $399.9 million during the year ended December 31, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet during the year; resulting from the lower average number of vessels in our fleet during the year ended December 31, 2010 compared to the year ended December 31, 2009. The decrease was also attributable to the time charter period extension for eight of our vessels for a four-year period commencing the earliest from 2014 at rates on average lower than the existing charter rates.

Voyage Expenses

Voyage expenses decreased by 32.3%, or $1.0 million, to $2.1 million during the year ended December 31, 2010 from $3.1 million during the year ended December 31, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet for the year ended December 31, 2010, resulting from the lower average number of vessels in our fleet during the year ended December 31, 2010 compared to the year ended December 31, 2009. The decrease was also attributable to decreased commissions charged by third parties as well as to lower fuel consumption during off-hire days.

Voyage Expenses - related parties

Voyage expenses - related parties in the amount of $0.4 million represent management fees charged to us by Costamare Shipping Company S.A. as provided under our management agreement. Voyage Expenses - related parties represent a 0.75% charge on our voyage revenues for the period from November 4, 2010 (Initial Public Offering completion) up to December 31, 2010.

Vessels' Operating Expenses

Vessels' operating expenses, which also include the realized gain (loss) under our forward transactions we entered into to hedge our Euro/USD exposure, decreased by 10.3%, or $11.8 million, to $102.8 million during the year ended December 31, 2010, from $114.6 million during the year ended December 31, 2009. Vessels' operating expenses, excluding the effect of the realized gain (loss) under our forward transactions, decreased by 15.5%, or $18.5 million, to $101.0 million during the year ended December 31, 2010, from $119.5 million during the year ended December 31, 2009. The decrease was mainly attributable to the decreased fleet operating days during the year ended December 31, 2010 compared to the year ended December 31, 2009.

General and Administrative Expenses

General and administrative expenses decreased by 29.4%, or $0.5 million, to $1.2 million during the year ended December 31, 2010, from $1.7 million during the year ended December 31, 2009. The decrease in the year ended December 31, 2010 was mainly attributable to the decrease in legal, accounting and advisory fees charged to us. In the year ended December 31, 2009, Shanghai Costamare Ship Management Co. Ltd. charged us the amount of $0.5 million for market analysis and research services. There was not such charge for the year ended December 31, 2010.

Management Fees - related parties

Management fees paid to our managers decreased by 7.4%, or $0.9 million, to $11.3 million during the year ended December 31, 2010, from $12.2 million during the year ended December 31, 2009. The decrease was attributable to the decrease in operating days of our fleet for the year ended December 31, 2010, resulting from the lower average number of vessels in our fleet in the year ended December 31, 2010 compared to the year ended December 31, 2009; partly offset by the new daily management fee we pay to our managers upon the completion of our Initial Public Offering on November 4, 2010.

Amortization of Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by 6.3%, or $0.5 million, to $8.5 million during the year ended December 31, 2010, from $8.0 million during the year ended December 31, 2009. During the year ended December 31, 2009 and 2010, six vessels and 12 vessels, respectively, underwent their special survey. The increase is attributable to the amortization expense charged for 12 vessels that were dry-docked during the year ended December 31, 2010, partly offset by the amortization expense not charged relating to the vessels sold during the year as their unamortized dry-docking balance at the date they were sold, was written-off and was included in the sale result.

Depreciation

Depreciation expense decreased by 0.3%, or $0.2 million, to $70.9 million during the year ended December 31, 2010, from $71.1 million during the year ended December 31, 2009. The decrease was attributable to the sale of 10 vessels and four vessels during the years ended December 31, 2009 and December 31, 2010, respectively, partly offset by the depreciation expense charged for two vessels and three vessels acquired during the years ended December 31, 2009 and December 31, 2010, respectively. Seven out of 10 vessels and three out of four vessels sold in 2009 and 2010, respectively, were fully depreciated as of the dates they were sold.

Gain on Sale of Vessels

In the year ended December 31, 2010, we recorded a gain of $9.6 million from the sale of four vessels, while in the year ended December 31, 2009, we recorded a net gain of $2.9 million from the sale of ten vessels.

Charter agreement early termination fee

The Charter agreement early termination fee of $9.5 million represents a one-time payment made to the charterer of MSC Navarino (renamed to Hyundai Navarino in January 2011) in December 2010, compensating the charterer MSC for the early termination of the charter party agreement of MSC Navarino. The vessel was redelivered to us by the charterer on January 28, 2011 and on January 30, 2011 she was delivered to charterers HMM for a daily charter rate of $44,000, compared to a daily charter rate of $22,000 under MSC charter party agreement.

Foreign Exchange Gains / (Losses)

Foreign exchange losses were $0.3million during the year ended December 31, 2010, compared to losses of $0.5 million during the year ended December 31, 2009, representing a change of $0.2 million resulting from favorable currency exchange movements between the U.S. dollar and the Euro.

Interest Income

In the year ended December 31, 2010 interest income decreased by 42.3%, or $1.1 million, to $1.5 million, from $2.6 million during the year ended December 31, 2009. The change in interest income was mainly due to the decreased average cash balance held by us during the year ended December 31, 2010 compared to the year ended December 31, 2009.

Interest and Finance Costs

Interest and finance costs decreased by 17.2%, or $14.9 million, to $71.9 million during the year ended December 31, 2010, from $86.8 million during the year ended December 31, 2009. The decrease was mainly attributable to lower average debt balance during the year ended December 31, 2010, compared to year ended December 31, 2009. The interest expense decreased to $19.5 million during the year ended December 31, 2010, from $47.5 million during the year ended December 31, 2009, due to decreased base rates. The costs relating to our interest rate swap agreements increased to $51.8 million during the year ended December 31, 2010, from $34.6 million during the year ended December 31, 2009, due to the increased difference between market rates and fixed rates.

Other

Other decreased to $0.3 million during the year ended December 31, 2010, from $3.9 million during the year ended December 31, 2009. The decrease was primarily attributable to the decreased income resulting from our vessels' hull and machinery as well as guarantee claims recoveries.

Gain (Loss) on Derivative Instruments

The fair value of our 11 derivative instruments which were outstanding as of December 31, 2010 equates to the amount that would be paid by us or to us should those instruments be terminated. As of December 31, 2010, the fair value of these 11 interest rate swaps in aggregate amounted to a liability of $107.9 million. Ten of the 11 interest rate derivative instruments that were outstanding as at December 31, 2010 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 year ended December 31, 2010, a loss of $21.9 million has been included in "Other comprehensive loss" in stockholders' equity and a loss of $4.9 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 year ended December 31, 2010.




Condensed cash flows                               Year ended December 31,
                                                   -----------------------
(Expressed in millions of U.S. dollars)               2009        2010
                                                   -----------  ----------
Net Cash Provided by Operating Activities          $     161.9  $    128.0
Net Cash Provided by (Used in)Investing
 Activities                                        $      12.8  $    (23.9)
Net Cash Provided by (Used in) Financing
 Activities                                        $    (252.7) $     43.4



Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the year ended December 31, 2010 decreased $33.9 million to $128.0 million, compared to $161.9 million for the year ended December 31, 2009. The decrease was primarily attributable to (a) decreased cash from operations of $38.0 million resulting from the decreased average number of vessels in 2010 compared to 2009 and to the increased "Accrued charter revenue" which results from the time difference between the revenue recognition and the cash collection, (b) unfavorable change in working capital position, excluding the current portion of long term debt and the accrued charter revenue, of $7.8 million, (c) increased payments for dry-dockings of $6.7 million and (d) a one-time payment of $9.5 million in December 2010 to the charterers of MSC Navarino for the early redelivery of the vessel, partly offset by reduced payments for interest (including swap payments) of $16.9 million in the year ended December 31, 2010, compared to the year ended December 31, 2009.

Net Cash Provided by (Used in) Investing Activities

Net cash used in investing activities was $23.9 million in the year ended December 31, 2010, which consists of (a) $28.3 million in payments to the shipyard for the construction cost of MSC Navarino, (b) $22.5 million in payments for the acquisition of two vessels, (c) $3.8 million advance payments for the acquisition of four vessels, (d) $22.7 million we received from the sale of four vessels and (e) $8.0 million we received from the sale of government securities.

Net cash provided by investing activities was $12.8 million in the year ended December 31, 2009, which consists of (a) $8.9 million in payments for the acquisition of the vessels Genius and Gifted, (b) $47.9 million in payments for the construction cost of MSC Navarino, (c) $21.4 million we received from the sale of government securities and (d) $48.2 million we received from the sale of 10 vessels.

Net Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities was $43.4 million in the year ended December 31, 2010, which mainly consists of (a) $93.9 million of indebtedness that we repaid, (b) $10.0 million in dividends we paid to our shareholders and (c) $145.5 million net proceeds we received from our Initial Public Offering in November 2010.

Net cash used in financing activities was $252.7 million in the year ended December 31, 2009, which mainly consists of (a) $30.0 million of proceeds drawn under our loan facility, (b) $124.4 million of indebtedness that we repaid and (c) $161.2 million in dividends we paid to our shareholders.

Liquidity and Capital Expenditures

Cash and cash equivalents

As of December 31, 2010 Costamare had a total cash liquidity of $207.8 million, consisting of cash, cash equivalents, restricted cash and investments.

Undrawn Credit Lines

As of December 31, 2010 Costamare had a total of undrawn credit lines of $194.2 million.

Debt-free vessels

As of February 16, 2011, the following vessels are free of debt:



                    Unencumbered Vessels in the water
        (refer to fleet list in page 15  for full charter details)

                                                                    Average
                                                                     Daily
                                                                    Charter
                                                                     Rate
                                                                     Until
                                              Current              Earliest
                                              Daily               Expiry of
                                              Charter               Charter
                                       Time    Hire                  (U.S.
 Vessel                Year Capacity Charter  (U.S.    Expiration  dollars)
  Name      Charterer  Built (TEU)   Term(1) dollars) of Charter(1)  (2)
---------  ---------- ------ ------ --------- ------ -------------- -------
1 COSCO
 HELLAS         COSCO   2006  9,469  12 years 32,400       May 2018  37,212
           ---------- ------ ------ --------- ------ -------------- -------
2 HYUNDAI
 NAVARINO         HMM   2010  8,531 1.2 years 44,000     March 2012  44,000
           ---------- ------ ------ --------- ------ -------------- -------
                A.P.
3 SEALAND     Moller-
 MICHIGAN      Maersk   2000  6,648  11 years 29,875    August 2018  26,267
           ---------- ------ ------ --------- ------ -------------- -------
4 MSCAUSTRIA      MSC   1984  3,584 3.7 years 21,100  November 2012  19,200
           ---------- ------ ------ --------- ------ -------------- -------
5 KARMEN          HMM   1991  3,351 0.2 years 10,000  February 2011  10,000
           ---------- ------ ------ --------- ------ -------------- -------
6 RENA            N/A   1990  3,351       N/A    N/A            N/A     N/A
           ---------- ------ ------ --------- ------ -------------- -------
                Hapag
7 AKRITAS       Lloyd   1987  3,152    1 year 11,000    August 2011  11,000
           ---------- ------ ------ --------- ------ -------------- -------
8 MSC
 CHALLENGER       MSC   1986  2,633   2 years 10,000 September 2012  10,000
           ---------- ------ ------ --------- ------ -------------- -------
9 ORANJE          N/A   1991  2,020       N/A    N/A            N/A     N/A
           ---------- ------ ------ --------- ------ -------------- -------
10 MSC SUDAN
   (3)            MSC   1976  1,630   3 years 14,000      June 2011  14,000
           ---------- ------ ------ --------- ------ -------------- -------
11 MSC SIERRA
   (3)            MSC   1977  1,630 3.7 years 14,000       May 2012  13,046
           ---------- ------ ------ --------- ------ -------------- -------
12 MSC
 TUSCANY          MSC   1978  1,468 1.9 years  7,920    August 2012   7,920
           ---------- ------ ------ --------- ------ -------------- -------
13 MSC FADO       MSC   1978  1,181   2 years  7,400       May 2012   7,400
           ---------- ------ ------ --------- ------ -------------- -------
14 ZAGORA   I.Messina   1995  1,162 0.5 years  7,500      July 2011   7,500
           ---------- ------ ------ --------- ------ -------------- -------
15 HORIZON       OACL   1991  1,068 7.1 years  7,625     April 2012   7,625
           ---------- ------ ------ --------- ------ -------------- -------



             Unencumbered Vessels purchased and to be delivered


                                                       Latest Delivery Date
 Vessel Name               Year Built Capacity (TEU)       from Sellers
-------------              ---------- ---------------- --------------------
1 Zim Israel                     1992            3,351     28 February 2011
                           ---------- ---------------- --------------------
2 Zim Hong Kong                  1992            3,351     28 February 2011
                           ---------- ---------------- --------------------
3 Forever Prosperity             1996            1,504        25 March 2011
                           ---------- ---------------- --------------------
4 Maersk Maine(4)                1992            2,024        31 March 2011
                           ---------- ---------------- --------------------
5 Maersk Maryland(4)             1991            2,023        31 March 2011
                           ---------- ---------------- --------------------
6 Maersk Vermont(4)              1991            2,023        31 March 2011
                           ---------- ---------------- --------------------


Notes:
(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 February 16, 2011 and the earliest
    expiration of each charter.
(3) We have agreed to sell MSC Sudan and MSC Sierra.
(4) Maersk Maine, Maersk Maryland and Maersk Vermont will substitute the
    vessels MSC Namibia, MSC Sudan and MSC Sierra in their charters.


Capital commitments

As of February 16, 2011 the Company's total commitments for own funds, assuming the finalization of the currently negotiated loan agreement in relation to the construction of two 9,000 TEU vessels to be built by Sungdong Shipbuilding & Marine Engineering Co., Ltd., amount to a total of approximately $ 140.9 million. This amount includes all equity capital commitments in relation to our new building contracts and our second hand vessel acquisitions.

Conference Call details

On Thursday, February 17, 2011 at 8:30 a.m. EST, Costamare's management team will hold a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(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 March 10, 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 35 years of history in the international shipping industry and a fleet of 53 containerships, with a total capacity of 275,728 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 our Registration Statement on Form F-1 (File No.333-170033) under the caption "Risk Factors".



Fleet List

The following table describes in detail our fleet deployment profile as of
February 16, 2011.
                                                                   Average
                                                                    Daily
                                                                   Charter
                                                                    Rate
                                                                    Until
                                            Current                Earliest
                                             Daily                Expiry 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
 GUANGZHOU      COSCO 2006 9,469  12 years    36,400   December 2017 36,400
           ---------- ---- ----- --------- ---------  -------------- ------
2 COSCO
 NINGBO         COSCO 2006 9,469  12 years    36,400    January 2018 36,400
           ---------- ---- ----- --------- ---------  -------------- ------
3 COSCO
 YANTIAN        COSCO 2006 9,469  12 years    36,400   February 2018 36,400
           ---------- ---- ----- --------- ---------  -------------- ------
4 COSCO
 BEIJING        COSCO 2006 9,469  12 years    36,400      April 2018 36,400
           ---------- ---- ----- --------- ---------  -------------- ------
5 COSCO
 HELLAS         COSCO 2006 9,469  12 years  32,400(3)       May 2018 37,212
           ---------- ---- ----- --------- ---------  -------------- ------
6 HYUNDAI
 NAVARINO         HMM 2010 8,531 1.2 years    44,000      March 2012 44,000
           ---------- ---- ----- --------- ---------  -------------- ------
7 MAERSK        A.P.
 KAWASAKI     Moller-
 (i)          Maersk  1997 7,403  10 years    37,000   December 2017 37,000
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
8 MAERSK      Moller-
 KURE(i)       Maersk 1996 7,403  10 years    37,000   December 2017 37,000
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
9 MAERSK      Moller-
 KOKURA(i)     Maersk 1997 7,403  10 years    37,000   February 2018 37,000
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
10 SEALAND    Moller-
 NEW YORK      Maersk 2000 6,648  11 years  34,875(4)     March 2018 28,607
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
11 MAERSK     Moller-
 KOBE          Maersk 2000 6,648  11 years  34,875(5)       May 2018 31,982
           ---------- ---- ----- --------- ---------  -------------- ------
12 SEALAND      A.P.
 WASHINGTON    Moller-
               Maersk 2000 6,648  11 years  34,875(6)      June 2018 28,678
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
13 SEALAND Moller-Ma-
 MICHIGAN        ersk 2000 6,648  11 years  29,875(7)    August 2018 26,267
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
14 SEALAND Moller-Ma-
 ILLINOIS        ersk 2000 6,648  11 years  34,875(8)   October 2018 28,740
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
15 MAERSK  Moller-Ma-
 KOLKATA         ersk 2003 6,644  11 years  34,500(9)  November 2019 33,225
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
16 MAERSK  Moller-Ma-
 KINGSTON        ersk 2003 6,644  11 years 34,875(10)  February 2020 33,390
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
17 MAERSK  Moller-Ma-
 KALAMATA        ersk 2003 6,644  11 years 34,875(11)     April 2020 33,434
           ---------- ---- ----- --------- ---------  -------------- ------
18 ZIM NEW
 YORK             ZIM 2002 4,992  10 years 18,189(12)      July 2012 31,092
           ---------- ---- ----- --------- ---------  -------------- ------
19 ZIM
 SHANGHAI         ZIM 2002 4,992  10 years 18,189(13)    August 2012 30,397
           ---------- ---- ----- --------- ---------  -------------- ------
20 ZIM
 PIRAEUS
 (ii)             ZIM 2004 4,992  10 years 20,013(14)     March 2014 24,731
           ---------- ---- ----- --------- ---------  -------------- ------
21 OAKLAND      Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 35,000(15) September 2016 31,205
           ---------- ---- ----- --------- ---------  -------------- ------
22 NEW YORK     Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 35,000(15)   October 2016 31,189
           ---------- ---- ----- --------- ---------  -------------- ------
23 SINGAPORE    Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 35,000(15)      July 2016 31,225
           ---------- ---- ----- --------- ---------  -------------- ------
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   3 years 20,000(18)     April 2012 20,000
           ---------- ---- ----- --------- ---------  -------------- ------
27 MSC
WASHINGTON        MSC 1984 3,876 3.2 years 20,000(19)  February 2013 18,364
           ---------- ---- ----- --------- ---------  -------------- ------
28 MSC KYOTO      MSC 1981 3,876 3.1 years 20,000(20)      June 2013 18,257
           ---------- ---- ----- --------- ---------  -------------- ------
29 MSC AUSTRIA    MSC 1984 3,584 3.7 years 21,100(21)  November 2012 19,200
           ---------- ---- ----- --------- ---------  -------------- ------
30 KARMEN         HMM 1991 3,351 0.2 years    10,000   February 2011 10,000
           ---------- ---- ----- --------- ---------  -------------- ------
31 RENA           N/A 1990 3,351       N/A       N/A             N/A    N/A
           ---------- ---- ----- --------- ---------  -------------- ------
               Hapag
32 AKRITAS      Lloyd 1987 3,152    1 year    11,000     August 2011 11,000
           ---------- ---- ----- --------- ---------  -------------- ------
33 GARDEN   Evergreen
 (iii)         Marine 1984 2,922   5 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
34 GENIUS   Evergreen
 I(iii)        Marine 1984 2,922 3.3 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
35 GATHER   Evergreen
 (iii)         Marine 1984 2,922   5 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
36 GIFTED   Evergreen
 (iv)          Marine 1984 2,922 2.4 years    15,700   December 2011 15,700
           ---------- ---- ----- --------- ---------  -------------- ------
37 MSC
 CHALLENGER       MSC 1986 2,633   2 years    10,000  September 2012 10,000
           ---------- ---- ----- --------- ---------  -------------- ------
38 ORANJE         N/A 1991 2,020       N/A       N/A             N/A    N/A
           ---------- ---- ----- --------- ---------  -------------- ------
39 MSC NAMIBIA
   (v)            MSC 1977 1,654 4.8 years 14,000(22)      July 2012 13,011
           ---------- ---- ----- --------- ---------  -------------- ------
40 MSC SUDAN
   (v)            MSC 1976 1,630   3 years    14,000       June 2011 14,000
           ---------- ---- ----- --------- ---------  -------------- ------
41 MSC SIERRA
   (v)            MSC 1977 1,630 3.7 years 14,000(23)       May 2012 13,046
           ---------- ---- ----- --------- ---------  -------------- ------
42 MSC
    TUSCANY       MSC 1978 1,468 1.9 years     7,920     August 2012  7,920
           ---------- ---- ----- --------- ---------  -------------- ------
43 MSC FADO       MSC 1978 1,181   2 years     7,400        May 2012  7,400
           ---------- ---- ----- --------- ---------  -------------- ------
44 ZAGORA   I.Messina 1995 1,162 0.5 years     7,500       July 2011  7,500
           ---------- ---- ----- --------- ---------  -------------- ------
45 HORIZON       OACL 1991 1,068 7.1 years     7,625      April 2012  7,625
           ---------- ---- ----- --------- ---------  -------------- ------



Second Hand Vessels to be Delivered

                           Year                      Latest Delivery Date
    Vessel Name            Built   Capacity (TEU)         from Sellers
--------------------     -------- ---------------- ------------------------
1 Zim Israel                 1992            3,351         28 February 2011
                         -------- ---------------- ------------------------
2 Zim Hong Kong              1992            3,351         28 February 2011
                         -------- ---------------- ------------------------
3 Forever Prosperity         1996            1,504            25 March 2011
                         -------- ---------------- ------------------------
4 Maersk Maine(a)            1992            2,024            31 March 2011
                         -------- ---------------- ------------------------
5 Maersk Maryland(a)         1991            2,023            31 March 2011
                         -------- ---------------- ------------------------
6 Maersk Vermont(a)          1991            2,023            31 March 2011
                         -------- ---------------- ------------------------


Vessels under Construction


                                                    Time       Earliest
                            Expected      Vessel   Charter    Expiration
Vessel Name    Charterer    Delivery       Type     Term      of Charter
-------------  -------- ---------------- -------- -------- ----------------
1 Hull S4010        MSC 4th Quarter 2012    9,000 10 years 4th Quarter 2022
               -------- ---------------- -------- -------- ----------------
2 Hull S4011        MSC 4th Quarter 2012    9,000 10 years 4th Quarter 2022
               -------- ---------------- -------- -------- ----------------
3 H1068A            MSC    November 2013    9,000 10 years     October 2023
               -------- ---------------- -------- -------- ----------------
4 H1069A            MSC    December 2013    9,000 10 years    November 2023
               -------- ---------------- -------- -------- ----------------
5 H1070A            MSC     January 2014    9,000 10 years    December 2023
               -------- ---------------- -------- -------- ----------------






(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 February 16, 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 lump sum 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 lump sum
     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 is applicable until May 15, 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
     May 15, 2011.
(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 December 17, 2011 to $11,500 per day
     until the earliest redelivery date.
(23) 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
(v)   We have agreed to sell MSC Namibia, MSC Sudan and MSC Sierra, and
      they are expected to be delivered to their Buyers by April 15, 2011.

(a)   Maersk Maine, Maersk Maryland and Maersk Vermont will substitute the
      vessels MSC Namibia, MSC Sudan and MSC Sierra in their charters.




                              COSTAMARE INC.
                     Consolidated Statements of Income


                                 Year ended          Three-months ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
(Expressed in thousands of
 U.S. dollars, except share
 and per share amounts)        2009        2010        2009        2010
                            ----------  ----------  ----------  ----------



REVENUES:
Voyage revenues             $  399,939  $  353,151  $   94,927  $   85,687

EXPENSES:
Voyage expenses                 (3,075)     (2,076)       (381)       (509)
Voyage expenses - related
 parties                             -        (410)          -        (410)
Charter agreement early
 termination fee                     -      (9,500)          -      (9,500)
Vessels' operating expenses   (114,515)   (102,771)    (26,616)    (26,048)
General and administrative
 expenses                       (1,236)     (1,224)       (509)       (449)
General and administrative
 expenses - related parties       (480)          -        (480)          -
Management fees - related
 parties                       (12,231)    (11,256)     (2,851)     (3,075)
Amortization of dry-docking
 and special survey costs       (7,986)     (8,465)     (2,046)     (2,328)
Depreciation                   (71,148)    (70,887)    (17,921)    (18,314)
Gain (Loss) on sale of
 vessels                         2,854       9,588         337           -
Foreign exchange gains /
 (losses)                         (535)       (273)        (90)       (235)

                            ----------  ----------  ----------  ----------
Operating income            $  191,587  $  155,877  $   44,370  $   24,819
                            ----------  ----------  ----------  ----------

OTHER INCOME (EXPENSES):
Interest income             $    2,672  $    1,449  $      171  $      288
Interest and finance costs     (86,817)    (71,949)    (20,374)    (17,844)
Other                            3,892         306        (395)         36
Gain (loss) on derivative
 instruments                     5,595      (4,459)     (1,170)      4,504

                            ----------  ----------  ----------  ----------
Total other expenses        $  (74,658) $  (74,653) $  (21,768) $  (13,016)
                            ----------  ----------  ----------  ----------

                            ----------  ----------  ----------  ----------
Net Income                  $  116,929  $   81,224  $   22,602  $   11,803
                            ==========  ==========  ==========  ==========

Earnings per share

Basic and diluted net
 income per share           $     2.49  $     1.65  $     0.48  $     0.21
                            ==========  ==========  ==========  ==========
Basic and diluted weighted
 average number of common
 shares                     47,000,000  49,113,425  47,000,000  55,384,783
                            ==========  ==========  ==========  ==========



                              COSTAMARE INC.
                        Consolidated Balance Sheets



                                                     As of December 31,
(Expressed in thousands of U.S. dollars)             2009         2010
                                                  -----------  -----------

ASSETS

CURRENT ASSETS:
Cash and cash equivalents                         $    12,282  $   159,774
Restricted cash                                         4,248        5,121
Receivables                                             3,135        3,360
Inventories                                            11,479        9,534
Due from related parties                                  419        1,297
Fair value of derivatives                                  44          458
Insurance claims receivable                               676          747
Vessels held for sale                                   2,951            -
Investments                                             8,188        6,080
Accrued charter revenue                                 3,218       22,413
Prepayments and other                                   1,665        2,428
                                                  -----------  -----------
         Total current assets                     $    48,305  $   211,212
                                                  -----------  -----------

FIXED ASSETS, NET:
Advances for vessels acquisitions                 $    94,455  $     3,830
Vessels, net                                        1,465,644    1,531,610
                                                  -----------  -----------
         Total fixed assets, net                  $ 1,560,099  $ 1,535,440
                                                  -----------  -----------

OTHER NON-CURRENT ASSETS:
Investments                                       $     6,190  $         -
Deferred charges, net                                  27,519       30,867
Due from related parties                                7,887            -
Restricted cash                                        40,252       36,814
Accrued charter revenue                                20,048       14,449
                                                  -----------  -----------
Total assets                                      $ 1,710,300  $ 1,828,782
                                                  ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt                 $    93,856  $   114,597
Accounts payable                                        8,822        4,128
Due to related parties                                  7,253            -
Accrued liabilities                                     6,356        7,761
Unearned revenue                                        2,136        2,580
Fair value of derivatives                              52,305       53,880
Dividends payable                                      10,000            -
Other current liabilities                               2,543        1,842
                                                  -----------  -----------
         Total current liabilities                $   183,271  $   184,788
                                                  -----------  -----------

OTHER NON-CURRENT LIABILITIES
Long-term debt, net of current portion            $ 1,341,737  $ 1,227,140
Fair value of derivatives, non current portion         28,855       54,062
Unearned revenue, net of current portion                1,215          650
                                                  -----------  -----------
     Total other non-current liabilities          $ 1,371,807  $ 1,281,852
                                                  -----------  -----------

                                                  -----------  -----------
COMMITMENTS AND CONTINGENCIES                     $         -  $         -
                                                  -----------  -----------

STOCKHOLDERS' EQUITY:
Common stock                                      $         -  $         6
Additional paid-in capital                            372,034      519,971
Accumulated other comprehensive loss                  (60,648)     (82,895)
Accumulated deficit                                  (156,164)     (74,940)
                                                  -----------  -----------
         Total stockholders' equity (deficit)     $   155,222  $   362,142
                                                  -----------  -----------

                                                  -----------  -----------
Total liabilities and stockholders' equity        $ 1,710,300  $ 1,828,782
                                                  ===========  ===========




                             COSTAMARE INC.
                         Statements of Cash Flows

                                Year ended            Three-months ended
                                December 31,             December 31,
                            ----------------------  ----------------------
(Expressed in thousands of
 U.S. dollars)                 2009        2010        2009        2010
                            ----------  ----------  ----------  ----------


Cash Flows from Operating
 Activities:
Net income:                 $  116,929  $   81,224  $   22,602  $   11,803
Adjustments to reconcile
 net income (loss) to net
 cash provided by operating
 activities:
Depreciation                    71,148      70,887      17,921      18,314
Amortization of financing
 costs                             746       1,827         228         688
Amortization of deferred
 dry-docking and special
 surveys                         7,986       8,465       2,046       2,328
Amortization of unearned
 revenue                        (3,378)       (650)       (111)       (164)
(Gain) Loss on sale of
 vessels                        (2,854)     (9,588)       (337)          -
Gain on sale of available
 for sale securities              (108)       (148)          -           -
Loss (gain) on derivative
 instruments                    (5,595)      4,459       1,170      (4,504)
Changes in operating assets
 and liabilities:
Receivables                 $   (2,039) $     (225) $      541  $    1,839
Due from related parties         4,538       7,009       1,961      11,193
Inventories                      1,108       1,945      (1,663)       (530)
Claims receivable                2,472         (71)      1,806          (7)
Prepayments and other              431        (763)        587        (456)
Accounts payable                 4,996      (4,694)      3,605      (2,125)
Due to related parties           6,983      (7,253)      5,619           -
Accrued liabilities             (8,447)      1,995      (2,842)      1,772
Deferred revenue                (3,906)        529         469          10
Other liabilities                 (692)       (701)      1,009        (409)
Dry-dockings                    (6,051)    (12,705)       (659)     (1,828)
Accrued charter revenue        (22,374)    (13,596)    (10,404)      1,028
                            ----------  ----------  ----------  ----------
Net Cash from Operating
 Activities                 $  161,893  $  127,946  $   43,548  $   38,952
                            ----------  ----------  ----------  ----------

Cash Flows from Investing
 Activities:
Advances for vessels'
 acquisitions               $  (47,903)     (3,830)    (24,495)     (3,830)
Sale of available for sale
 securities                     21,421  $    8,030  $        -  $        -
Vessel
 acquisitions/Addition to
 vessel cost                    (8,864)    (50,781)          -     (22,500)
Proceeds from the sale of
 vessels                        48,157      22,731       1,843           -
                            ----------  ----------  ----------  ----------
Net Cash provided by (Used
 in) Investing Activities   $   12,811  $  (23,850) $  (22,652) $  (26,330)
                            ----------  ----------  ----------  ----------

Cash Flows from Financing
 Activities:
Stockholders' contributions $        -  $    2,400  $        -  $        -
Proceeds from long-term
 debt                           30,000           -      30,000           -
Repayment of long-term debt   (124,355)    (93,856)    (55,200)    (30,396)
Payments for financing
 costs                            (150)     (3,256)       (150)       (300)
Initial public offering
 proceeds, net                       -     148,827           -     148,827
Initial public Offering
 related costs                              (3,284)          -      (1,603)
Distribution paid to
 stockholders with
 reorganization               (131,000)          -           -           -
Dividends paid                 (30,230)    (10,000)          -           -
(Increase) decrease in
 restricted cash                 3,051       2,565        (318)       (350)
                            ----------  ----------  ----------  ----------
Net Cash used in Financing
 Activities                 $ (252,684) $   43,396  $  (25,668) $  116,178
                            ----------  ----------  ----------  ----------

Net increase (decrease) in
 cash and cash equivalents  $  (77,980) $  147,492  $   (4,772) $  128,800
Cash and cash equivalents
 at beginning of
 year/period                    90,262      12,282      17,054      30,974
Cash and cash equivalents
 at end of year/period      $   12,282  $  159,774  $   12,282  $  159,774
                            ==========  ==========  ==========  ==========



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