SOURCE: Costamare Inc.

Costamare Inc.

April 27, 2017 16:15 ET

Costamare Inc. Reports Results for the First Quarter Ended March 31, 2017

MONACO--(Marketwired - Apr 27, 2017) - Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the first quarter ended March 31, 2017.

  • Voyage revenues adjusted on a cash basis of $102.7 million for the three-months ended March 31, 2017.

  • Adjusted Net income available to common stockholders of $20.8 million or $0.23 per share for the three-months ended March 31, 2017.

See "Financial Summary" and "Non-GAAP Measures" below for additional detail.

New Business Developments

A. Newbuild charter agreements

  • The Company has entered into time charter agreements for all five 11,000TEU newbuild vessels acquired under our JV with York Capital. The vessels have been chartered for periods of up to 12 months at an average rate of about $18,000 per day. The first two vessels, the Cape Akritas and Cape Tainaro have been delivered to their charterers and have commenced operations. The third and fourth vessels, the Cape Kortia and Cape Sounio, are expected to be delivered to their charterers during the first week of May 2017, while the last vessel, the Cape Artemisio, is expected to be delivered from the shipyard and to her charterers during the second week of June 2017.

B. New charter agreements

  • The Company has entered into the following charter arrangements:

    • Agreed to charter the 2003-built, 5,928 TEU containership Venetiko to Hapag-Lloyd, for a period of 5 to 14 months starting from March 19, 2017, at a daily rate of $6,600.
    • Agreed to charter the 2001-built, 5,576 TEU containership Ensenada to PIL, for a period of 6 to 10 months starting from March 31, 2017, at a daily rate of $6,950.
    • Agreed to charter the 2004-built, 4,992 TEU containership Piraeus to TS Lines, for a period of 4 to 8 months starting from April 6, 2017, at a daily rate of $5,100.
    • Agreed to extend the charter of the 1998-built, 3,842 TEU containership Itea with ACL for a period expiring at the charterers' option during the period from September 15, 2017 to October 25, 2017, starting from April 30, 2017, at a daily rate of $7,250.
    • Agreed to charter the 1999-built, 2,526 TEU containership Elafonisos to MSC for a period of 11 to 13 months starting from March 15, 2017, at a daily rate of $6,200.
    • Agreed to extend the charter of the 1996-built, 1,504 TEU containership Prosper with Sea Consortium for a period of 2 to 6 months, starting from April 26, 2017, at a daily rate of $6,750.
    • Agreed to charter the 2001-built, 1,078 TEU containership Stadt Luebeck to Sea Consortium for a period of 25 to 90 days starting from April 10, 2017, at a daily rate of $6,500.

C. New financing transactions

  • In April 2017, we entered into a loan agreement with a leading European financial institution for the financing of the last 11,000 TEU vessel on order, acquired under our JV with York Capital. The facility is for an amount of up to US $44 million which will be repayable over 3 years. The proceeds are expected to finance the remaining yard installment for the vessel.

D. New acquisitions

  • In March 2017, the Company agreed to purchase the 2014-built 4,957TEU wide-beam container vessels Leonidio and Kyparissia. Both vessels are expected to be delivered to the Company in May 2017. The Company has agreed to charter each vessel to Maersk Line for a period of 7 years. The acquisitions will be initially funded with equity. The Company is in advanced discussions to finance the vessels' acquisition cost with debt.

  • In April 2017, the Company agreed to purchase the 2005-built 7,491TEU container vessel Megalopolis. The vessel is expected to be delivered to the Company in May 2017. The Company has agreed to charter the vessel to Maersk Line for a period of 5 years. The acquisition will be initially funded with equity. The Company is in discussions to finance the vessel's acquisition cost with debt.

E. Vessel disposals

  • In January 2017 and March 2017 we sold for demolition the 5,050TEU container vessel Romanos and the 3,351 TEU container vessel Marina, respectively.

F. Dividend announcements

  • On April 3, 2017, we declared a dividend for the quarter ended March 31, 2017 of $0.10 per share on our common stock, payable on May 8, 2017 to stockholders of record on April 21, 2017. 

  • On April 3, 2017, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, a dividend of $0.531250 per share on our Series C Preferred Stock and a dividend of $0.546875 per share on our Series D Preferred Stock, which were all paid on April 17, 2017 to holders of record on April 13, 2017.

Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:

"During the first quarter the Company delivered solid results.

On the chartering side, we have now chartered all five 11,000 TEU new buildings for periods of up to one year and we have secured debt finance for the last remaining 11,000 TEU ship. As of today all of our new building program is fully funded with remaining equity commitments amounting to only US $ 2 million, due in 2018.

We continue to charter our ships, having chartered in total 7 ships since last quarter. We have no ships laid up.

At the same time we are renewing our fleet. We have bought three second hand ships, which have been chartered for periods ranging from 5 to 7 years. Those vessels are expected to be delivered within May. The ships have been bought with equity and we are in discussions with financial institutions regarding debt finance.

Finally, on the dividend and the Dividend Reinvestment Plan currently in place, members of the founding family, as has been the case since the inception of the plan, have decided to reinvest in full the first quarter cash dividends.

As mentioned in the past, our goal is to strengthen the Company and enhance long term shareholder value. In that respect, we are actively looking at new transactions selectively."

 
Financial Summary
             
    Three-month period ended March 31,  
(Expressed in thousands of U.S. dollars, except share and per share data):   2016     2017  
         
                 
Voyage revenue   $ 120,274     $ 105,524  
Accrued charter revenue (1)   $ (452 )   $ (2,791 )
Voyage revenue adjusted on a cash basis (2)   $ 119,822     $ 102,733  
                 
Adjusted Net Income available to common stockholders (3)   $ 34,307     $ 20,774  
Weighted Average number of shares     75,400,044       91,036,935  
Adjusted Earnings per share (3)   $ 0.45     $ 0.23  
                 
Net Income   $ 34,996     $ 23,015  
Net Income available to common stockholders   $ 29,789     $ 17,866  
Weighted Average number of shares     75,400,044       91,036,935  
Earnings per share   $ 0.40     $ 0.20  
                 

(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will exceed revenue recognized on a straight line basis.
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash "Accrued charter revenue" recorded under charters with escalating charter rates. However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles ("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 available to common stockholders and adjusted earnings per share are non- GAAP measures. Refer to the reconciliation of net income to adjusted net income.

Non-GAAP Measures

The Company reports its financial results in accordance with U.S. 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. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month periods ended March 31, 2017 and 2016. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per share.

 
Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share
       
    Three-month period ended March 31,  
(Expressed in thousands of U.S. dollars, except share and per share data)   2016     2017  
                 
Net Income   $ 34,996     $ 23,015  
Earnings allocated to Preferred Stock     (5,207 )     (5,149 )
Net Income available to common stockholders     29,789       17,866  
Accrued charter revenue     (452 )     (2,791 )
Loss on sale / disposal of vessels     -       3,638  
General and administrative expenses - non-cash component     1,344       984  
Amortization of prepaid lease rentals     1,238       2,158  
Realized Loss / (Gain) on Euro/USD forward contracts (1)     (239 )     32  
Loss / (Gain) on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments (1)     2,627       (1,113 )
Adjusted Net income available to common stockholders   $ 34,307     $ 20,774  
Adjusted Earnings per Share   $ 0.45     $ 0.23  
Weighted average number of shares     75,400,044       91,036,935  
                 

Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent net income after earnings allocated to preferred stock, but before non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, realized loss / (gain) on Euro/USD forward contracts, loss on sale / disposal of vessels, general and administrative expenses - non-cash component, amortization of prepaid lease rentals and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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.

(1) Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to adjusted net income. Charges negatively impacting net income are reflected as increases to adjusted net income.

Results of Operations

Three-month period ended March 31, 2017 compared to the three-month period ended March 31, 2016

During the three-month periods ended March 31, 2017 and 2016, we had an average of 52.0 and 54.0 vessels, respectively, in our fleet. In the three-month period ended March 31, 2017, we sold the container vessels Romanos and the Marina with an aggregate capacity of 8,401 TEU. In the three-month periods ended March 31, 2017 and 2016, our fleet ownership days totaled 4,678 and 4,914 days, respectively. Ownership days are the primary driver of voyage revenue and vessels' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.

             
(Expressed in millions of U.S. dollars,
except percentages)
  Three-month period ended
March 31,
       
2016     2017     Change     Percentage Change  
       
                         
Voyage revenue   $ 120.3     $ 105.5     $ (14.8 )   (12.3 %)
Voyage expenses     (0.6 )     (0.7 )     0.1     16.7 %
Voyage expenses - related parties     (0.9 )     (0.8 )     (0.1 )   (11.1 %)
Vessels' operating expenses     (27.0 )     (25.3 )     (1.7 )   (6.3 %)
General and administrative expenses     (1.2 )     (1.2 )     -     -  
Management fees - related parties     (4.8 )     (4.7 )     (0.1 )   (2.1 %)
General and administrative expenses - non-cash component     (1.3 )     (1.0 )     (0.3 )   (23.1 %)
Amortization of dry-docking and special survey costs     (1.9 )     (1.9 )     -     -  
Depreciation     (25.3 )     (24.1 )     (1.2 )   (4.7 %)
Amortization of prepaid lease rentals     (1.2 )     (2.2 )     1.0     83.3 %
Loss on sale / disposal of vessels     -       (3.6 )     3.6     100.0 %
Foreign exchange losses     (0.1 )     -       (0.1 )   (100.0 %)
Interest income     0.3       0.6       0.3     100.0 %
Interest and finance costs     (18.9 )     (17.9 )     (1.0 )   (5.3 %)
Equity gain / (loss) on investments     (0.2 )     0.2       0.4     200.0 %
Other     0.4       0.3       (0.1 )   (25.0 %)
Loss on derivative instruments     (2.6 )     (0.2 )     (2.4 )   (92.3 %)
Net Income   $ 35.0     $ 23.0                
                               
   
(Expressed in millions of U.S. dollars,
except percentages)
  Three-month period ended
March 31,
             
2016     2017     Change     Percentage Change
                               
Voyage revenue   $ 120.3     $ 105.5     $ (14.8 )   (12.3 %)
Accrued charter revenue     (0.5 )     (2.8 )     2.3     460.0 %
Voyage revenue adjusted on a cash basis   $ 119.8     $ 102.7     $ (17.1 )   (14.3 %)
                               
   
Vessels' operational data   Three-month period ended
March 31,
           
2016   2017   Change     Percentage Change  
                     
Average number of vessels   54.0   52.0   (2.0 )   (3.7 %)
Ownership days   4,914   4,678   (236 )   (4.8 %)
Number of vessels under dry-docking   3   1   (2 )      
                     

Voyage Revenue

Voyage revenue decreased by 12.3%, or $14.8 million, to $105.5 million during the three-month period ended March 31, 2017, from $120.3 million during the three-month period ended March 31, 2016. The decrease is mainly attributable to (i) decreased charter rates for certain of our vessels, (ii) revenue not earned by three vessels sold for demolition during 2016 (one vessel on August 5, 2016) and the first quarter of 2017 (the Romanos on January 17, 2017 and the Marina on March 3, 2017) and (iii) revenue not earned due to decreased calendar days by one day during the first quarter of 2017 (90 calendar days) compared to the first quarter of 2016 (91 calendar days); partly offset by decreased off-hire days of our fleet during the three-month period ended March 31, 2017 compared to the three-month period ended March 31, 2016. 

Voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue"), decreased by 14.3%, or $17.1 million, to $102.7 million during the three-month period ended March 31, 2017, from $119.8 million during the three-month period ended March 31, 2016. Accrued charter revenue for the three month periods ended March31, 2016 and 2017, amounted to $0.5 million and $2.8 million respectively.

Voyage Expenses

Voyage expenses were $0.7 million and $0.6 million, during the three-month periods ended March 31, 2017 and 2016, respectively. Voyage expenses mainly include (i) off-hire expenses of our vessels, mainly related to fuel consumption and (ii) third party commissions.

Voyage Expenses - related parties

Voyage expenses - related parties in the amount of $0.8 million and $0.9 million during the three-month periods ended March 31, 2017 and 2016, respectively, represent fees of 0.75% in the aggregate on voyage revenues charged by Costamare Shipping Company S.A. ("Costamare Shipping") and by Costamare Shipping Services Ltd. ("Costamare Services") pursuant to the Framework Agreement between Costamare Shipping and us dated November 2, 2015 (the "Framework Agreement"), the Services Agreement between Costamare Services and our vessel-owning subsidiaries dated November 2, 2015 (the "Services Agreement") and the individual ship-management agreements pertaining to each vessel. 

Vessels' Operating Expenses

Vessels' operating expenses, which also include the realized gain / (loss) under derivative contracts entered into in relation to foreign currency exposure, decreased by 6.3%, or $1.7 million, to $25.3 million during the three-month period ended March 31, 2017, from $27.0 million during the three-month period ended March 31, 2016.

General and Administrative Expenses

General and administrative expenses were $1.2 million for each of the three-month periods ended March 31, 2016 and 2017 and both include $0.63 million which is part of the annual fee that Costamare Services receives based on the Services Agreement.

Management Fees - related parties

Management fees paid to our managers were $4.7 million during the three-month period ended March 31, 2017 and $4.8 million during the three-month period ended March 31, 2016. Such fees are pursuant to the Framework Agreement, in effect from November 2, 2015.

General and administrative expenses - non-cash component

General and administrative expenses - non-cash component for the three-month period ended March 31, 2017 amounted to $1.0 million, representing the value of the shares issued to Costamare Services on March 30, 2017, pursuant to the Services Agreement. For the three-month period ended March 31, 2016, the general and administrative expenses - non-cash component amounted to $1.3 million, representing the value of the shares issued to Costamare Services on March 30, 2016 pursuant to the Services Agreement.

Amortization of Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs was $1.9 million for each of the three-month periods ended March 31, 2017 and 2016. During the three-month period ended March 31, 2017, one vessel underwent and completed its special survey. During the three-month period ended March 31, 2016 one vessel underwent and completed and two were in process of completing the respective special survey.

Depreciation

Depreciation expense decreased by 4.7% or $1.2 million, to $24.1 million during the three-month period ended March 31, 2017, from $25.3 million during the three-month period ended March 31, 2016. The decrease was mainly attributable (i) to decreased calendar days by one day during the first quarter of 2017 (90 calendar days) compared to the first quarter of 2016 (91 calendar days) and (ii) to depreciation expense not charged during the three month period ended March 31, 2017, due to the sale of three vessels during 2016 and the first quarter of 2017.

Amortization of Prepaid Lease Rentals

Amortization of prepaid lease rentals was $2.2 million during the three-month period ended March 31, 2017. Amortization of prepaid lease rentals was $1.2 million during the three-month period ended March 31, 2016.

Loss on sale / disposal of vessels

During the three-month period ended March 31, 2017, we recorded a loss of $3.0 million from the sale of the vessel Marina and a loss of $0.6 million from the sale of the vessel Romanos which was classified as Asset held for sale as at December 31, 2016. There were no vessels disposed of during the three-month period ended March 31, 2016.

Foreign Exchange Losses

Foreign exchange losses were $nil and $0.1 million during the three-month periods ended March 31, 2017 and 2016, respectively.

Interest Income

Interest income amounted to $0.6 million and $0.3 million for the three-month periods ended March 31, 2017 and 2016, respectively.

Interest and Finance Costs

Interest and finance costs decreased by 5.3%, or $1.0 million, to $17.9 million during the three-month period ended March 31, 2017, from $18.9 million during the three-month period ended March 31, 2016. The decrease is partly attributable to the decreased average loan balance during the three-month period ended March 31, 2017 compared to the three-month period ended March 31, 2016.

Equity Gain / (Loss) on Investments

The equity gain on investments of $0.2 million for the three-month period ended March 31, 2017, represents our share of the net gain of eighteen jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated on May 18, 2015 (the "Framework Deed"), between the Company and a wholly-owned subsidiary on the one hand, and York Capital Management Global Advisors LLC and an affiliated fund (collectively, together with the funds it manages or advises, "York") on the other hand, and is mainly attributable to the income generated by certain new-build vessels that were delivered from the shipyard during 2016 and commenced their charters. This gain is partly off-set by losses related to certain new-build vessels that were delivered in 2016 and 2017, but will commence their commercial operations in the second quarter of 2017. We hold a range of 25% to 49% of the capital stock of the companies jointly owned pursuant to the Framework Deed.

Loss on Derivative Instruments

The fair value of our 17 interest rate derivative instruments which were outstanding as of March 31, 2017 equates to the amount that would be paid by us or to us should those instruments be terminated. As of March 31, 2017, the fair value of these 17 interest rate derivative instruments in aggregate amounted to a liability of $8.5 million. The effective portion of the change in the fair value of the interest rate derivative instruments that qualified for hedge accounting is recorded in "Other Comprehensive Income" ("OCI") while the ineffective portion is recorded in the consolidated statements of income. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in the consolidated statement of income. For the three-month period ended March 31, 2017, a net gain of $4.0 million has been included in OCI and a net loss of $0.3 million has been included in Loss on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended March 31, 2017.

Cash Flows
Three-month periods ended March 31, 2017 and 2016

Condensed cash flows   Three-month period ended March 31,  
(Expressed in millions of U.S. dollars)   2016     2017  
Net Cash Provided by Operating Activities   $ 57.4     $ 52.8  
Net Cash Provided by / (Used in) Investing Activities   $ (7.0 )   $ 4.4  
Net Cash Used in Financing Activities   $ (69.3 )   $ (81.6 )
                 

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended March 31, 2017, decreased by $4.6 million to $52.8 million, compared to $57.4 million for the three-month period ended March 31, 2016. The decrease is mainly attributable to the decreased cash from operations of $17.1 million; partly off-set by decreased special survey costs of $1.9 million during the three-month period ended March 31, 2017 compared to the three-month period ended March 31, 2016, decreased payments for interest (including swap payments) during the period of $3.4 million and the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $9.0 million.

Net Cash Provided by / (Used in) Investing Activities

Net cash provided by investing activities was $4.4 million in the three-month period ended March 31, 2017, which mainly consisted of $9.9 million in proceeds we received from the sale of two vessels; partly off-set by $5.4 million (net of $0.3 million we received as dividend distributions) in payments for working capital injected into certain entities pursuant to the Framework Deed.

Net cash used in investing activities was $7.0 million in the three-month period ended March 31, 2016, which mainly consisted of $6.5 million (net of $2.7 million we received as dividend distributions) in advance payments for the construction of one newbuild vessel and the acquisition of a secondhand vessel, pursuant to the Framework Deed.

Net Cash Used in Financing Activities

Net cash used in financing activities was $81.6 million in the three-month period ended March 31, 2017, which mainly consisted of (a) $44.4 million of indebtedness that we repaid, (b) $7.3 million we repaid relating to our sale and leaseback agreements, (c) $23.2 million we paid for the prepayment of two of our credit facilities, (d) $3.6 million we paid for dividends to holders of our common stock for the fourth quarter of 2016 and (e) $1.0 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock ("Series B Preferred Stock"), $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock") and $2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock ("Series D Preferred Stock"), for the period from October 15, 2016 to January 14, 2017.

Net cash used in financing activities was $69.3 million in the three-month period ended March 31, 2016, which mainly consisted of (a) $47.9 million of indebtedness that we repaid, (b) $3.5 million we repaid relating to our sale and leaseback agreements (c) $21.9 million we paid for dividends to holders of our common stock for the fourth quarter of 2015, and (d) $1.0 million we paid for dividends to holders of our Series B Preferred Stock, $2.1 million we paid for dividends to holders of our Series C Preferred Stock and $2.2 million we paid for dividends to holders of our Series D Preferred Stock, for the period from October 15, 2015 to January 14, 2016.

Liquidity and Capital Expenditures

Cash and cash equivalents

As of March 31, 2017, we had a total cash liquidity of $184.0 million, consisting of cash, cash equivalents and restricted cash.

Debt-free vessels

As of April 27, 2017, the following vessels were free of debt.

 
Unencumbered Vessels
(Refer to fleet list for full details)
Vessel Name   Year
Built
  TEU
Capacity
ELAFONISSOS   1999   2,526
MONEMVASIA   1998   2,472
ARKADIA   2001   1,550
         

Capital commitments

As of April 27, 2017, we had outstanding equity commitments relating to two contracted newbuilds aggregating approximately $2.1 million payable until the vessels are delivered in 2018. The amount represents our interest in the relevant jointly-owned entities under the Framework Deed.

Conference Call details:

On Friday, April 28, 2017 at 8:30 a.m. ET, 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: 1-844-887-9405 (from the US), 0808 238 9064 (from the UK) or +1-412-317-9258 (from outside the US). Please quote "Costamare".

A replay of the conference call will be available until May 28, 2017. The United States replay number is +1-877-344-7529; the standard international replay number is +1-412-317-0088; and the access code required for the replay is: 10105977.

Live webcast:

There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com) under the "Investors" section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About Costamare Inc.

Costamare Inc. is one of the world's leading owners and providers of containerships for charter. The Company has 43 years of history in the international shipping industry and a fleet of 72 containerships, with a total capacity of approximately 473,000 TEU, including three newbuild and three secondhand containerships to be delivered. Eighteen of our containerships, including three newbuilds on order, have been acquired pursuant to the Framework Deed with York Capital Management by vessel-owning joint venture entities in which we hold a minority equity interest. The Company's common stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B", "CMRE PR C" and "CMRE PR D", respectively.

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 April 27, 2017, about our fleet of containerships, including our newbuilds on order, the vessels acquired pursuant to the Framework Deed and those vessels subject to sale and leaseback agreements. Each vessel is a cellular containership, meaning it is a dedicated container vessel.

                         
    Vessel Name   Charterer   Year Built   Capacity (TEU)   Current Daily Charter Rate (U.S. dollars)   Expiration of Charter(1)
1   TRITON(i)(ii)   Evergreen   2016   14,424   (*)   March 2026
2   TITAN(i)(ii)   Evergreen   2016   14,424   (*)   April 2026
3   TALOS(i)(ii)   Evergreen   2016   14,424   (*)   July 2026
4   TAURUS(i)(ii)   Evergreen   2016   14,424   (*)   August 2026
5   THESEUS(i)(ii)   Evergreen   2016   14,424   (*)   August 2026
6   CAPE AKRITAS(i)   (**)   2016   11,010   (**)   (**)
7   CAPE TAINARO(i)   (**)   2017   11,010   (**)   (**)
8   CAPE KORTIA(i)   (**)   2017   11,010   (**)   (**)
9   CAPE SOUNIO(i)   (**)   2017   11,010   (**)   (**)
10   COSCO GUANGZHOU   COSCO   2006   9,469   36,400   December 2017
11   COSCO NINGBO   COSCO   2006   9,469   36,400   January 2018
12   COSCO YANTIAN   COSCO   2006   9,469   36,400   February 2018
13   COSCO BEIJING   COSCO   2006   9,469   36,400   April 2018
14   COSCO HELLAS   COSCO   2006   9,469   37,519   May 2018
15   MSC AZOV(ii)   MSC   2014   9,403   43,000   November 2023
16   MSC AJACCIO(ii)   MSC   2014   9,403   43,000   February 2024
17   MSC AMALFI(ii)   MSC   2014   9,403   43,000   March 2024
18   MSC ATHENS(ii)   MSC   2013   8,827   42,000   January 2023
19   MSC ATHOS(ii)   MSC   2013   8,827   42,000   February 2023
20   VALOR   Evergreen   2013   8,827   41,700   April 2020(3)
21   VALUE   Evergreen   2013   8,827   41,700   April 2020(3)
22   VALIANT   Evergreen   2013   8,827   41,700   June 2020(3)
23   VALENCE   Evergreen   2013   8,827   41,700   July 2020(3)
24   VANTAGE   Evergreen   2013   8,827   41,700   September 2020(3)
25   NAVARINO   PIL   2010   8,531   9,000   November 2017
26   MEGALOPOLIS   Maersk   2005   7,471   16,000   May 2022
27   MAERSK KAWASAKI   Maersk   1997   7,403   37,000   May 2017(4)
28   MAERSK KURE   Maersk   1996   7,403   37,000   June 2017(4)
29   MAERSK KOKURA   Maersk   1997   7,403   37,000   June 2017(4)
30   MSC METHONI   MSC   2003   6,724   29,000   September 2021
31   SEALAND NEW YORK   Maersk   2000   6,648   26,100   March 2018
32   MAERSK KOBE   Maersk   2000   6,648   26,100   May 2018
33   SEALAND WASHINGTON   Maersk   2000   6,648   26,100   June 2018
34   SEALAND MICHIGAN   Maersk   2000   6,648   26,100   August 2018
35   SEALAND ILLINOIS   Maersk   2000   6,648   26,100   October 2018
36   MSC KOLKATA   Maersk   2003   6,644   26,100   November 2019
37   MSC KINGSTON   Maersk   2003   6,644   26,100   February 2020
38   MSC KALAMATA   Maersk   2003   6,644   26,100   April 2020
39   VENETIKO   Hapag Lloyd   2003   5,928   6,600   August 2017
40   ENSENADA (i)   PIL   2001   5,576   6,950   September 2017
41   ZIM NEW YORK   ZIM   2002   4,992   7,736   September 2017(5)
42   ZIM SHANGHAI   ZIM   2002   4,992   7,736   September 2017(5)
43   PIRAEUS   TS Lines   2004   4,992   5,100   August 2017
44   LEONIDIO   Maersk   2014   4,957   14,200(6)   December 2024
45   KYPARISSIA   Maersk   2014   4,957   14,200(7)   November 2024
46   OAKLAND EXPRESS   Hapag Lloyd   2000   4,890   5,500   March 2017-January 2018(8)
47   HALIFAX EXPRESS   Hapag Lloyd   2000   4,890   5,500   March 2017-January 2018(8)
48   SINGAPORE EXPRESS   Hapag Lloyd   2000   4,890   5,500   March 2017-January 2018(8)
49   MSC MANDRAKI   MSC   1988   4,828   20,000   June 2017
50   MSC MYKONOS   MSC   1988   4,828   20,000   August 2017
51   MSC ULSAN   MSC   2002   4,132   16,500   May 2017
52   MSC KORONI   MSC   1998   3,842   13,500(9)   September 2018
53   ITEA   ACL   1998   3,842   6,000(10)   September 2017
54   LAKONIA   Evergreen   2004   2,586   5,800   June 2017
55   ELAFONISOS(i)   MSC   1999   2,526   6,200   February 2018
56   AREOPOLIS   Evergreen   2000   2,474   5,950   May 2017
57   MONEMVASIA(i)   Maersk   1998   2,472   9,250   November 2021
58   MESSINI   Evergreen   1997   2,458   5,800   May 2017
59   MSC REUNION   MSC   1992   2,024   6,800   July 2017
60   MSC NAMIBIA II   MSC   1991   2,023   6,800   July 2017
61   MSC SIERRA II   MSC   1991   2,023   6,800   June 2017
62   MSC PYLOS   MSC   1991   2,020   6,000   January 2018
63   PADMA(i)   Evergreen   1998   1,645   7,000   May 2017
64   NEAPOLIS   Evergreen   2000   1,645   6,900   May 2017
65   ARKADIA(i)   Evergreen   2001   1,550   10,600   August 2017
66   PROSPER   Sea Consortium   1996   1,504   6,750   June 2017
67   ZAGORA   MSC   1995   1,162   6,200   June 2017
68   PETALIDI(i)   CMA CGM   1994   1,162   6,950   June 2017
69   STADT LUEBECK   Sea Consortium   2001   1,078   6,500   May 2017
                         

Newbuilds

   
Vessel Name
 
Shipyard
 
Capacity (TEU)
 
Charterer
  Expected Delivery(2)
1   NCP0152(i)   Hanjin Subic Bay   11,010   (**)   Q2 2017
2   YZJ1206(i) (ii)   Jiangsu New Yangzi   3,800   Hamburg Süd   Q1 2018
3   YZJ1207 (i) (ii)   Jiangsu New Yangzi   3,800   Hamburg Süd   Q2 2018
                     

(1) Charter terms and expiration dates are based on the earliest date charters could expire. Amounts set out for current daily charter rate are the amounts contained in the charter contracts.
(2) Based on latest shipyard production schedule, subject to change.
(3) Assumes exercise of owner's unilateral options to extend the charter of these vessels for two one year periods at the same charter rate. The charterer also has corresponding options to unilaterally extend the charter for the same periods at the same charter rate
(4) Based on an agreement with the charterers, the vessels will be redelivered to the Company earlier than the original redelivery date, which was in December 2017 for Maersk Kure and Maersk Kawasaki and February 2018 for Maersk Kokura. The expiration dates shown above, are the new redelivery dates. Charterers have the option to employ each vessel for an additional period of up to six months, commencing on the new redelivery date, paying a daily hire rate of $10,500 per day per vessel for the first two months and $14,000 per day per vessel thereafter.
(5) The amounts in the table reflect the current charter terms, giving effect to our agreement with Zim under its 2014 restructuring plan. Based on this agreement, we have been granted charter extensions and have been issued equity securities representing 1.2% of Zim's equity and approximately $8.2 million in interest bearing notes maturing in 2023. In July 2016 the Company exercised its option to extend the charters of Zim New York and Zim Shanghai pursuant to its option for a one year period at market rate plus $1,100 per day per vessel while the notes remain outstanding. The rate for this second optional year has been determined at $7,736 per day.
(6) This charter rate will start on December 7, 2017. From delivery of the vessel until December 7, 2017, the charter rate will be $6,000 per day.
(7) This charter rate will start on November 24, 2017. From delivery of the vessel until November 24, 2017, the charter rate will be $6,000 per day.
(8) Charterers have at their option chartered two of the three vessels for a period of 7 to 13 months and the third vessel for a period of 3 to 13 months.
(9) As from December 1, 2012 until redelivery, the charter rate is to be a minimum of $13,500 per day plus 50% of the difference between the market rate and the charter rate of $13,500. The market rate is to be determined annually based on the Hamburg ConTex type 3500 TEU index published on October 1 of each year until redelivery.
(10) This charter rate changes on April 30, 2017 to $7,250 per day until the earliest redelivery date.
(i) Denotes vessels acquired pursuant to the Framework Deed. The Company holds an equity interest ranging between 25% and 49% in each of the vessel-owning entities.
(ii) Denotes vessels subject to a sale and leaseback transaction
(*) Denotes current daily charter rates that are treated as confidential.
(**) Denotes newbuild vessels chartered for periods of up to 12 months at an average rate of about $18,000 per day.

   
   
COSTAMARE INC.
 
Consolidated Statements of Income  
   
    Three-months ended March 31,  
(Expressed in thousands of U.S. dollars, except share and per share amounts)   2016     2017  
REVENUES:                
Voyage revenue   $ 120,274     $ 105,524  
                 
EXPENSES:                
Voyage expenses     (572 )     (695 )
Voyage expenses - related parties     (902 )     (791 )
Vessels' operating expenses     (26,991 )     (25,335 )
General and administrative expenses     (1,226 )     (1,182 )
Management fees - related parties     (4,785 )     (4,732 )
General and administrative expenses - non-cash component     (1,344 )     (984 )
Amortization of dry-docking and special survey costs     (1,934 )     (1,899 )
Depreciation     (25,281 )     (24,075 )
Amortization of prepaid lease rentals     (1,238 )     (2,158 )
Loss on sale / disposal of vessels     -       (3,638 )
Foreign exchange gains / (losses)     (124 )     43  
Operating income   $ 55,877     $ 40,078  
                 
OTHER INCOME / (EXPENSES):                
Interest income   $ 361     $ 571  
Interest and finance costs     (18,906 )     (17,901 )
Equity gain / (loss) on investments     (207 )     205  
Other     498       238  
Loss on derivative instruments     (2,627 )     (176 )
Total other income / (expenses)   $ (20,881 )   $ (17,063 )
Net Income   $ 34,996     $ 23,015  
Earnings allocated to Preferred Stock     (5,207 )     (5,149 )
Net Income available to common stockholders   $ 29,789     $ 17,866  
                 
Earnings per common share, basic and diluted   $ 0.40     $ 0.20  
Weighted average number of shares, basic and diluted     75,400,044       91,036,935  
                 
                 
                 
   
COSTAMARE INC.  
Consolidated Balance Sheets  
   
    As of December 31,     As of
March 31,
 
(Expressed in thousands of U.S. dollars)   2016     2017  
ASSETS                
CURRENT ASSETS:                
Cash and cash equivalents   $ 164,898     $ 140,558  
Restricted cash     6,882       6,609  
Accounts receivable     971       941  
Inventories     11,415       10,098  
Due from related parties     3,447       3,343  
Fair value of derivatives     -       26  
Insurance claims receivable     2,886       2,500  
Prepaid lease rentals     8,752       8,752  
Asset held for sale     6,256       -  
Accrued charter revenue     408       408  
Prepayments and other     3,914       3,962  
Total current assets   $ 209,829     $ 177,197  
FIXED ASSETS, NET:                
Capital leased assets   $ 384,872     $ 381,775  
Vessels, net     1,688,285       1,660,129  
Total fixed assets, net   $ 2,073,157     $ 2,041,904  
NON-CURRENT ASSETS:                
Equity method investments   $ 153,126     $ 158,759  
Prepaid lease rentals, non-current     51,670       49,512  
Deferred charges, net     20,367       18,808  
Accounts receivable, non-current     1,575       1,575  
Restricted cash     38,783       36,808  
Fair value of derivatives, non-current     762       2,536  
Accrued charter revenue     185       84  
Other non-current assets     8,970       9,079  
Total assets   $ 2,558,424     $ 2,496,262  
LIABILITIES AND STOCKHOLDERS' EQUITY                
CURRENT LIABILITIES:                
Current portion of long-term debt   $ 198,277     $ 188,995  
Accounts payable     3,848       4,540  
Due to related parties     191       217  
Capital lease obligations     29,059       29,345  
Accrued liabilities     11,109       11,089  
Unearned revenue     19,668       20,275  
Fair value of derivatives     16,161       11,083  
Other current liabilities     1,673       1,402  
Total current liabilities   $ 279,986     $ 266,946  
NON-CURRENT LIABILITIES                
Long-term debt, net of current portion   $ 856,330     $ 798,393  
Capital lease obligations, net of current portion     331,196       323,769  
Unearned revenue, net of current portion     16,488       13,596  
Total non-current liabilities   $ 1,204,014     $ 1,135,758  
COMMITMENTS AND CONTINGENCIES                
STOCKHOLDERS' EQUITY:                
Preferred stock   $ -     $ -  
Common stock     9       9  
Additional paid-in capital     1,057,423       1,063,831  
Retained earnings     31,416       40,122  
Accumulated other comprehensive loss     (14,424 )     (10,404 )
Total stockholders' equity   $ 1,074,424     $ 1,093,558  
Total liabilities and stockholders' equity   $ 2,558,424     $ 2,496,262  
                 

Contact Information

  • Company Contacts:

    Gregory Zikos
    Chief Financial Officer
    Konstantinos Tsakalidis
    Business Development

    Costamare Inc., Monaco
    Tel: (+377) 93 25 09 40
    Email: ir@costamare.com