SOURCE: Costamare Inc.

Costamare Inc.

November 22, 2010 17:00 ET

Costamare Inc. Reports Third Quarter 2010 Results

ATHENS, GREECE--(Marketwire - November 22, 2010) - Costamare Inc. ("Costamare") (NYSE: CMRE), a leading international owner of containerships, today reported unaudited financial results for the period ended September 30, 2010.

Highlights

--  Voyage revenues of $88.6 million and $267.5 million for the three and
    the nine months ended September 30, 2010, respectively.

--  EBITDA of $63.4 million and $181.1 million for the three and the nine
    months ended September 30, 2010, respectively.

--  Net income of $23.8 million or $0.51 per share and $69.4 million or
    $1.48 per share for the three and the nine months ended September 30,
    2010, respectively.

--  Entered into a $120.0 million credit facility to be used purely for
    growth purposes.

--  Accepted delivery of two 3,351 TEU secondhand vessels.

--  Finalized shipbuilding contracts, each subject to completion of the
    loan documentation, for three  9,000 TEU newbuildings



              Three and Nine Months Ended September 30, 2010

                            Financial Summary



                                  Nine-months ended    Three-months ended
                                    September 30,         September 30,
                                --------------------- ---------------------
(Expressed in thousands of U.S.
 dollars, except share and per
 share amounts):                  2009       2010       2009       2010
                                ---------- ---------- ---------- ----------
                                                (Unaudited)

Voyage revenue                  $  305,012 $  267,464 $   97,157 $   88,640
EBITDA                          $  217,436 $  181,075 $   59,937 $   63,365
Net Income                      $   94,327 $   69,421 $   24,058 $   23,785
Weighted Average number of
 shares (1)                     47,000,000 47,000,000 47,000,000 47,000,000
Earnings per share              $     2.01 $     1.48 $     0.51 $     0.51

Adjusted EBITDA (2)             $  196,184 $  165,826 $   57,323 $   64,199

Adjusted Net Income (2)         $   73,075 $   54,172 $   21,444 $   24,619
Weighted Average number of
 shares (1)                     47,000,000 47,000,000 47,000,000 47,000,000
Adjusted Earnings per share (2) $     1.55 $     1.15 $     0.46 $     0.52



(1) The weighted average number of shares gives effect to the stock
dividend of 0.88 for each share which took place in October 2010 and
excludes the 13,300,000 shares offered in our Initial Public Offering in
November 2010.
(2) 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.

Mr. Konstantinos Konstantakopoulos, CEO of Costamare Inc., commented:

We are very pleased to have commenced this new chapter in our company's history, and to have our shares trading on the New York Stock Exchange.

Costamare is not a quarterly project; we have 35 years of experience in shipping, including 25 years in containers. During this 25-year period we have worked with almost every major liner company, and to this day we do not have a dissatisfied client; rather the opposite.

We have a track record of uninterrupted profitability, even during the worst downturns, and over 200 successful vessel Sale and Purchase transactions.

Our focus has been and will be on building long-term relationships with our clients and enhancing our reputation for quality service.

We think that today is a very good time to grow; we have identified and we are currently discussing many attractive projects. This is why we decided to go public now and to accept a significant discount to our NAV.

We feel that we are in a very strong position versus the competition; we have the capital, we have the relationships, and we have the experience in order to take advantage of the opportunities we see today.

We avoided vessel acquisitions during the peak of the market and we have not used financial engineering or back-loaded our debt obligations; on the contrary, we have a strong balance sheet as we move forward.

Today we have 43 ships in the water, 2 billion in contracted revenues, 1.1 billion of net debt and 13 ships free of debt. Our cash available together with cash that can be raised on debt free assets is north of 400 million. This flexibility, together with significant cash from operations from the existing fleet means that we are able to grow the company and the dividend.

While we believe that the fundamentals in our market look very positive for the next 2 years, we intend to stay in line with our philosophy and track record, and avoid over-leveraging the company or back-loading our debt repayments.

We follow a managed portfolio approach on our charters that will ensure meeting all our debt obligations and dividend payments, without, at the same time, significantly limiting our upside.

While today's share price neither reflects the Company's NAV, nor its growth prospects, we strongly believe that we will be able to significantly create shareholder value and it is our job to make that happen. I would like to thank those who have joined us as shareholders for their confidence.

Results of Operations

Three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009

During the three-month period ended September 30, 2010, we had an average of 41.9 vessels in our fleet. During the three-month period ended September 30, 2009, we had an average of 45.6 vessels in our fleet. In the three-month period ended September 30, 2010, we sold the vessel MSC Sicily with a TEU capacity of 1,466. In the three-month period ended September 30, 2009, we acquired the vessels Genius and Gifted with an aggregate TEU capacity of 5,844 and we sold four vessels with an aggregate TEU capacity of 8,514. In the three-month period ended September 30, 2010 our fleet operating days totaled 3,857 days. In the three-month period ended September 30, 2009 our fleet operating days totaled 4,198 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 vessels in our fleet is owned.

                                         Three-month
                                         period ended
                                         September 30,
                                       ----------------

    (Expressed in millions of U.S.                               Percentage
     dollars, except percentages)        2009     2010    Change   Change
                                       -------  -------  -------  -------
                                                    (Unaudited)

Voyage revenue                         $  97.2  $  88.6  $  (8.6)    (8.8%)
Voyage expenses                        $  (0.3) $  (0.5) $  (0.2)   (66.7%)
Vessels operating expenses             $ (26.5) $ (24.9) $   1.6      6.0%
General and administrative expenses    $  (0.5) $  (0.1) $   0.4     80.0%
Management fees                        $  (3.0) $  (2.7) $   0.3     10.0%
Amortization of dry-docking and special
 survey costs                          $  (2.0) $  (2.0)       -        -
Depreciation                           $ (17.1) $ (18.1) $  (1.0)    (5.8%)
Gain (Loss) on sale of vessels         $  (1.3) $   1.7  $   3.0        -
Foreign exchange gains / (losses)      $  (0.1) $  (0.1)       -        -
Interest income                        $   0.9  $   0.6  $  (0.3)   (33.3%)
Interest and finance costs             $ (17.6) $ (19.9) $  (2.3)   (13.1%)
Gain (loss) on derivative instruments  $  (5.6) $   1.2  $   6.8        -
                                       -------  -------  -------  -------
Net Income                             $  24.1  $  23.8  $  (0.3)    (1.2%)
                                       =======  =======  =======  =======


                                         Three-month
                                         period ended
                                         September 30,
                                      -----------------
                                                                 Percentage
Fleet operational data                  2009     2010   Change     Change
                                      -------- -------- -------  --------

Average number of vessels                 45.6     41.9    (3.7)     (8.1%)
Operating days                           4,198    3,857    (341)     (8.1%)
Number of vessels drydocked                  0        3       3         -

Voyage Revenue

Voyage revenue decreased by 8.8%, or $8.6 million, to $88.6 million during the three-month period ended September 30, 2010, from $97.2 million during the three-month period ended September 30, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet during the period, resulting from the lower average number of vessels in our fleet during the three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009.

Voyage Expenses

Voyage expenses increased by 66.7%, or $0.2 million, to $0.5 million during the three-month period ended September 30, 2010, from $0.3 million during the three-month period ended September 30, 2009. The increase was primarily attributable to purchase of bunkers of MSC Sicily upon its redelivery from its charterer to us partially, offset with decreased commissions charged by third parties.

Vessels' Operating Expenses

Vessels' operating expenses decreased by 6.0%, or $1.6 million, to $24.9 million during the three-month period ended September 30, 2010, from $26.5 million during the three-month period ended September 30, 2009. The decrease was mainly attributable to the decreased fleet operating days during the three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009.

General and Administrative Expenses

General and administrative expenses decreased by 80.0%, or $0.4 million, to $0.1 million during the three-month period ended September 30, 2010, from $0.5 million during the three-month period ended September 30, 2009. The decrease in the three-month period ended September 30, 2010 is mainly attributable to the decreased legal and advisory expenses charged to us compared to the three-month period ended September 30, 2009.

Management Fees

Management fees paid to our managers decreased by 10.0%, or $0.3 million, to $2.7 million during the three-month period ended September 30, 2010, from $3.0 million during the three-month period ended September 30, 2009. The decrease was attributable to the decrease in operating days of our fleet for the period ended September 30, 2010, resulting from the lower average number of vessels in our fleet in the three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009.

Amortization of Dry-docking and Special Survey Costs

Amortization of deferred drydocking and special survey costs expense was $2.0 million and $2.0 million during the three-month period ended September 30, 2010 and September 30, 2009, respectively. During the three-month period ended September 30, 2009 and 2010, no vessels and three vessels, respectively, underwent their special survey. The amortization expense charged for two of our vessels that underwent their initial drydocking in the first half of 2010, was offset by the amortization expense not charged following the sale of the MSC Sicily and the write-off of its unamortized drydocking balance which was included in the sale result.

Depreciation

Depreciation expense increased by 5.8%, or $1.0 million, to $18.1 million during the three-month period ended September 30, 2010, from $17.1 million during the three-month period ended September 30, 2009. The increase is primarily attributable to the depreciation expense charged for the vessel MSC Navarino that was delivered to us by the shipyard in May 2010. MSC Sicily, which was sold in the three-month period ended September 30, 2010 was fully depreciated as of the date it was sold.

Gain on Sale of Vessels

In the three-month period ended September 30, 2010, we recorded a gain of $1.7 million from the sale of one vessel, while in the three-month period ended September 30, 2009, we recorded a net loss of $1.3 million from the sale of four vessels.

Foreign Exchange Gains / (Losses)

Foreign exchange gains were $0.1 million and $0.1 million during the three-month period ended September 30, 2010 and September 30, 2009, respectively.

Interest Income

During the three-month period ended September 30, 2010 interest income decreased by 33.3%, or $0.3 million, to $0.6 million, from $0.9 million during the three-month period ended September 30, 2009. The change in interest income is mainly due to the decreased average cash balance held by us during the three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009.

Interest and Finance Costs

Interest and finance costs increased by 13.1%, or $2.3 million, to $19.9 million during the three-month period ended September 30, 2010, from $17.6 million during the three-month period ended September 30, 2009. Interest expense decreased to $5.6 million during the three-month period ended September 30, 2010, from $7.2 million during the three-month period ended September 30, 2009 due to decreased base rates. The costs relating to our interest rate swap agreements increased to $13.6 million during the three-month period ended September 30, 2010, from $10.3 million during the three-month period ended September 30, 2009, due to the increased difference between market rates and fixed rates.

Gain (Loss) on Derivative Instruments

The fair value of our eleven derivative instruments which were outstanding as of September 30, 2010 equates to the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2010, the fair value of these eleven interest rate swaps in aggregate amounted to a liability of $138.4 million. Ten of the eleven interest rate derivative instruments that were outstanding as at September 30, 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 September 30, 2010, a loss of $15.8 million has been recorded in "Other comprehensive loss" in stockholders' equity and a loss of $4.2 million has been recorded in "Gain (loss) on derivative instruments" in the consolidated statement of income.

Cash Flows

    Three-month periods ended September 30, 2010 and September 30, 2009

                                                      Three-month period
Condensed cash flows                                     September 30,
                                                    ----------------------
(Expressed in millions of U.S. dollars)                2009        2010
                                                    ----------  ----------
Net Cash Provided by Operating Activities           $     35.4  $     32.9
Net Cash Provided by Investing Activities           $      2.8  $     11.7
Net Cash Provided by (Used in) Financing Activities $    (44.8) $    (16.1)

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended September 30, 2010 decreased by $2.5 million to $32.9 million, compared to $35.4 million for the three-month period ended September 30, 2009. The decrease was primarily attributable to (a) increased payments for drydockings of $2.1 million, (b) unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue, of $7.3 million and (c) increased payments for interest (including swap payments) of $0.9 million in the three-month period ended September 30, 2010 compared to the three-month period ended September 30, 2009; partly offset by increased cash from operations of $4.9 million resulting from the decreased "Accrued charter revenue" which results from the time difference between the revenue recognition and the cash collection.

Net Cash Provided by Investing Activities

Net cash provided by investing activities was $11.7 million in the three-month period ended September 30, 2010, which consists of (a) $8.0 million we received from the sale of government securities and (b) $3.7 million we received from the sale of one vessel.

Net cash provided by investing activities was $2.8 million in the three-month period ended September 30, 2009, which consists of (a) $4.2 million we received from the sale of government securities, (b) $30.9 million we received from the sale of four vessels, (c) $23.4 million in payments to the shipyard for the construction cost of MSC Navarino and (d) $8.9 million in payments for the acquisition of two vessels.

Net Cash Provided by (Used in) Financing Activities

Net cash used in financing activities was $16.1 million in the three-month period ended September 30, 2010, which mainly consists of (a) $19.4 million of indebtedness that we repaid and (b) $2.4 million received from our shareholders in exchange of the issuance of 24,000,000 shares to them.

Net cash used in financing activities amounted to $44.8 million in the three-month period ended September 30, 2009 and mainly consists of (a) $19.4 million of indebtedness that we repaid and (b) $27.2 million in dividends we paid to our shareholders.

Results of Operations

Nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009

During the nine-month period ended September 30, 2010, we had an average of 42.6 vessels in our fleet. During the nine-month period ended September 30, 2009, we had an average of 48.3 vessels in our fleet. In the nine-month period ended September 30, 2010, we acquired the vessel MSC Navarino with a TEU capacity of 8,531, and we sold four vessels with an aggregate TEU capacity of 10,766. In the nine-month period ended September 30, 2009, we acquired the vessels Genius and Gifted with an aggregate TEU capacity of 5,844 and we sold nine vessels with an aggregate TEU capacity of 17,377. In the nine-month period ended September 30, 2010 our fleet operating days totaled 11,624 days. In the nine-month period ended September 30, 2009 our fleet operating days totaled 13,194 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 vessels in our fleet is owned.

                                         Nine-month
                                         period ended
                                         September 30,
                                       ----------------
(Expressed in millions of U.S.                                   Percentage
 dollars, except percentages)           2009      2010   Change   Change
                                       -------  -------  -------  -------
                                                  (Unaudited)

Voyage revenue                         $ 305.0  $ 267.5  $ (37.5)   (12.3%)
Voyage expenses                        $  (2.7) $  (1.6) $   1.1     40.7%
Vessels operating expenses             $ (87.9) $ (76.7) $  11.2     12.7%
General and administrative expenses    $  (0.7) $  (0.8) $  (0.1)   (14.3%)
Management fees                        $  (9.4) $  (8.2) $   1.2     12.8%
Amortization of dry-docking and
 special survey costs                  $  (6.0) $  (6.1) $  (0.1)    (1.7%)
Depreciation                           $ (53.2) $ (52.6) $   0.6      1.1%
Gain on sale of vessels                $   2.5  $   9.6  $   7.1        -
Foreign exchange gains / (losses)      $  (0.5) $  (0.0) $   0.5        -
Interest income                        $   2.5  $   1.1  $  (1.4)   (56.0%)
Interest and finance costs             $ (66.4) $ (54.1) $  12.3     18.5%
Other                                  $   4.3  $   0.3  $  (4.0)   (93.0%)
Gain (loss) on derivative instruments  $   6.8  $  (9.0) $ (15.8)       -
                                       -------  -------  -------  -------
Net Income                             $  94.3  $  69.4  $ (24.9)   (26.4%)
                                       =======  =======  =======  =======




                                         Nine-month
                                        period ended
                                        September 30,
                                      -----------------
                                                                 Percentage
Fleet operational data                  2009     2010    Change   Change
                                      -------- -------- -------  --------

Average number of vessels                 48.3     42.6    (5.7)    (11.8%)
Operating days                          13,194   11,624  (1,570)    (11.9%)
Number of vessels drydocked                  5        9       4         -

Voyage Revenue

Voyage revenue decreased by 12.3%, or $37.5 million, to $267.5 million during the nine-month period ended September 30, 2010, from $305.0 million during the nine-month period ended September 30, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet during the period, resulting from the lower average number of vessels in our fleet during the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009.

Voyage Expenses

Voyage expenses decreased by 40.7%, or $1.1 million, to $1.6 million during the nine-month period ended September 30, 2010 from $2.7 million during the nine-month period ended September 30, 2009. The decrease was primarily attributable to the decrease in operating days of our fleet for the period ended September 30, 2010, resulting from the lower average number of vessels in our fleet during the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009. The decrease is also attributable to decreased commissions charged by third parties as well as to lower port charges and fuel consumption due to decreased off-hire days.

Vessels' Operating Expenses

Vessels' operating expenses decreased by 12.7%, or $11.2 million, to $76.7 million during the nine-month period ended September 30, 2010, from $87.9 million during the nine-month period ended September 30, 2009. The decrease was mainly attributable to the decreased fleet operating days during the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009.

General and Administrative Expenses

General and administrative expenses increased by 14.3%, or $0.1 million, to $0.8 million during the nine-month period ended September 30, 2010, from $0.7 million during the nine-month period ended September 30, 2009. The increase in the nine-month period ended September 30, 2010 is mainly attributable to the increase in legal, accounting and advisory fees charged to us.

Management Fees

Management fees paid to our managers decreased by 12.8%, or $1.2 million, to $8.2 million during the nine-month period ended September 30, 2010, from $9.4 million during the nine-month period ended September 30, 2009. The decrease was attributable to the decrease in operating days of our fleet for the period ended September 30, 2010, resulting from the lower average number of vessels in our fleet in the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009.

Amortization of Dry-docking and Special Survey Costs

Amortization of deferred drydocking and special survey costs expense increased by 1.7%, or $0.1 million, to $6.1 million during the nine-month period ended September 30, 2010, from $6.0 million during the nine-month period ended September 30, 2009. During the nine-months period ended September 30, 2009 and 2010, five vessels and nine vessels, respectively, underwent their special survey. The increase is attributable to the amortization expense charged for the nine of our vessels that were drydocked during the nine-month period ended September 30, 2010, partly offset by the amortization expense that was not charged relating to the vessels that were sold during the period and their unamortized drydocking balance was written-off and was included in the sale result.

Depreciation

Depreciation expense decreased by 1.1%, or $0.6 million, to $52.6 million during the nine-month period ended September 30, 2010, from $53.2 million during the nine-month period ended September 30, 2009. The decrease is attributable to the sale of four vessels during the period ended September 30, 2010, partly offset by the depreciation expense charged for the vessel MSC Navarino that was delivered to us by the shipyard in May 2010. Three of the four vessels sold in the nine-month period ended September 30, 2010 were fully depreciated as of the dates they were sold.

Gain on Sale of Vessels

In the nine-month period ended September 30, 2010, we recorded a gain of $9.6 million from the sale of four vessels, while in the nine-month period ended September 30, 2009, we recorded a gain of $2.5 million from the sale of nine vessels.

Foreign Exchange Gains / (Losses)

Foreign exchange losses were $nil during the nine-month period ended September 30, 2010, compared to losses of $0.5 million during the nine-month period ended September 30, 2009, representing a change of $0.5 million resulting from favorable currency translation between the U.S. dollar and the Euro.

Interest Income

During the nine-month period ended September 30, 2010 interest income decreased by 56.0%, or $1.4 million, to $1.1 million, from $2.5 million during the nine-month period ended September 30, 2009. The change in interest income is mainly due to the decreased average cash balance held by us during the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009.

Interest and Finance Costs

Interest and finance costs decreased by 18.5%, or $12.3 million, to $54.1 million during the nine-month period ended September 30, 2010, from $66.4 million during the nine-month period ended September 30, 2009. The decrease is mainly attributable to lower average debt balance during the nine-month period ended September 30, 2010, compared to nine-month period ended September 30, 2009. The interest expense decreased to $14.5 million during the nine-month period ended September 30, 2010, from $39.4 million during the nine-month period ended September 30, 2009, due to decreased base rates. The costs relating to our interest rate swap agreements increased to $39.7 million during the nine-month period ended September 30, 2010, from $24.8 million during the nine-month period ended September 30, 2009, due to the increased difference between market rates and fixed rates.

Other

Other decreased to $0.3 million during the nine-month period ended September 30, 2010, from $4.3 million during the nine-month period ended September 30, 2009. The decrease is 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 eleven derivative instruments which were outstanding as of September 30, 2010 equates to the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2010, the fair value of these eleven interest rate swaps in aggregate amounted to a liability of $138.4 million. Ten of the eleven interest rate derivative instruments that were outstanding as at September 30, 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 nine-month period ended September 30, 2010, a loss of $47.5 million has been recorded in "Other comprehensive loss" in stockholders' equity and a loss of $9.8 million has been recorded in "Gain (loss) on derivative instruments" in the consolidated statement of income.

Cash Flows


     Nine-month periods ended September 30, 2010 and September 30, 2009

                                                      Nine-month period
Condensed cash flows                                    September 30,
                                                    ----------------------
(Expressed in millions of U.S. dollars)                2009        2010
                                                    ----------  ----------
Net Cash Provided by Operating Activities           $    118.3  $     89.0
Net Cash Provided by Investing Activities           $     35.4  $      2.5
Net Cash Provided by (Used in) Financing Activities $   (227.0) $    (72.8)

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the nine-month period ended September 30, 2010 decreased $29.3 million to $89.0 million, compared to $118.3 million for the nine-month period ended September 30, 2009. The decrease was primarily attributable to (a) decreased cash from operations of $40.2 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 $7.9 million and (c) increased payments for drydockings of $5.5 million, partly offset by reduced payments for interest (including swap payments) of $13.8 million in the nine-month period ended September 30, 2010, compared to the nine-month period ended September 30, 2009.

Net Cash Provided by Investing Activities

Net cash provided by investing activities was $2.5 million in the nine-month period ended September 30, 2010, which consists of (a) $28.3 million in payments to the shipyard for the construction cost of MSC Navarino, (b) $22.7 million we received from the sale of four vessels and (c) $8.0 million we received from the sale of government securities.

Net cash provided by investing activities was $35.4 million in the nine-month period ended September 30, 2009, which consists of (a) $21.4 million we received from the sale of government securities, (b) $46.3 million we received from the sale of nine vessels, (c) $23.4 million in payments to the shipyard for the construction cost of MSC Navarino and (d) $8.9 million in payments for the acquisition of two vessels.

Net Cash Provided by (Used in) Financing Activities

Net cash used in financing activities was $72.8 million in the nine-month period ended September 30, 2010, which mainly consists of $63.5 million of indebtedness that we repaid and $10.0 million in dividends we paid to our shareholders.

Net cash used in financing activities amounted to $227.0 million in the nine-month period ended September 30, 2009, and mainly consists of $69.2 million of indebtedness that we repaid, $131.0 million in distributions we paid to our shareholders in connection with our company's corporate structure reorganization in 2008 and $30.2 million in dividends we paid to our shareholders.

Liquidity and Capital Expenditures

As of September 30, 2010 Costamare had a total cash liquidity of $152.8 million, consisting of cash, cash equivalents and investments of $78.6 million and an undrawn credit line of $74.2 million. In addition to that the Company had thirteen ships free of debt.

On November 9, 2010, Costamare successfully completed an initial public offering and NYSE listing, raising a total of $159.6 million.

As of November 22, 2010, the following vessels are free of debt:

               Unencumbered Vessels as of November 22, 2010
        (refer to fleet list in page 11 for full charter details)

                                                                   Average
                                                                    Daily
                                                                   Charter
                                                                    Rate
                                            Current                 Until
                                             Daily                 Earliest
                                            Charter               Expiry of
                                      Time   Hire                  Charter
 Vessel                Year Capacity Charter (U.S.  Expiration of  (U.S.
  Name      Charterer  Built (TEU)   Term(1)dollars) Charter(1) dollars)(2)
--------    ---------- ---- ----- --------- ------ -------------- ---------
1 COSCO
 HELLAS       COSCO    2006 9,469  12 years 32,400     May 2018      36,996
            ---------- ---- ----- --------- ------ -------------- ---------
2 MSC NAVARINO MSC     2010 8,531 0.7 years 22,000   January 2011    22,000
            ---------- ---- ----- --------- ------ -------------- ---------

3 SEALAND      A.P.
  MICHIGAN    Moller-
              Maersk   2000 6,648  11 years 25,375    August 2018    26,302
            ---------- ---- ----- --------- ------ -------------- ---------
4 MSC AUSTRIA   MSC    1984 3,584 3.7 years 17,250  November 2012    19,103
            ---------- ---- ----- --------- ------ -------------- ---------
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 MSC SUDAN     MSC    1976 1,630   3 years 11,250    June 2011      13,019
            ---------- ---- ----- --------- ------ -------------- ---------
10 MSC SIERRA   MSC    1977 1,630 3.7 years 11,250    May 2012       12,847
            ---------- ---- ----- --------- ------ -------------- ---------
11 MSC TUSCANY  MSC    1978 1,468 1.9 years 12,000   August 2012      7,985
            ---------- ---- ----- --------- ------ -------------- ---------
12 MSC FADO     MSC    1978 1,181   2 years  7,400    May 2012        7,400
            ---------- ---- ----- --------- ------ -------------- ---------
13 HORIZON     OACL    1991 1,068 7.1 years  7,625   April 2012       7,625
            ---------- ---- ----- --------- ------ -------------- ---------


(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 October 15, 2010 and the earliest
expiration of each charter. Certain of our charter rates change until
their earliest expiration dates.

As of November 22, 2010, the Company's only commitments, excluding the shipbuilding contracts relating to the three 9,000 TEU vessels which are subject to the completion of financing arrangement, amount to a total of $20.25 million in relation to the delivery of the two remaining 3,351 ships which are scheduled to be delivered in the first quarter of 2011.

Conference Call details

On Tuesday, November 23, 2010 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 (Standard International dial in). Please quote "Costamare."

A replay of the conference call will be available until November 30, 2010. 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). 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 43 containerships, with a total capacity of 218,584 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
October 15, 2010.

                                                                  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 36,996
           ---------- ---- ----- --------- ---------  -------------- ------
6 MSC
 NAVARINO(4)      MSC 2010 8,531 0.7 years    22,000    January 2011 22,000
           ---------- ---- ----- --------- ---------  -------------- ------
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  30,375(5)     March 2018 28,766
           ---------- ---- ----- --------- ---------  -------------- ------
               A.P.
11 MAERSK    Moller-
 KOBE        Maersk   2000 6,648  11 years  30,375(6)       May 2018 31,855
           ---------- ---- ----- --------- ---------  -------------- ------
12 SEALAND      A.P.
 WASHINGTON   Moller-
              Maersk  2000 6,648  11 years  30,375(7)      June 2018 28,828
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
13 SEALAND   Moller-
 MICHIGAN    Maersk   2000 6,648  11 years  25,375(8)    August 2018 26,302
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
14 SEALAND   Moller-
 ILLINOIS    Maersk   2000 6,648  11 years  30,375(9)   October 2018 28,882
           ---------- ---- ----- --------- ---------  -------------- ------
               A.P.
15 MAERSK    Moller-
 KOLKATA     Maersk   2003 6,644  11 years 30,000(10)  November 2019 33,168
           ---------- ---- ----- --------- ---------  -------------- ------
                A.P.
16 MAERSK     Moller-
 KINGSTON     Maersk  2003 6,644  11 years 30,375(11)  February 2020 33,343
           ---------- ---- ----- --------- ---------  -------------- ------
              A.P.
17 MAERSK    Moller-
 KALAMATA    Maersk   2003 6,644  11 years 30,375(12)     April 2020 33,385
           ---------- ---- ----- --------- ---------  -------------- ------
18 ZIM NEW
 YORK             ZIM 2002 4,992  10 years 16,205(13)      July 2012 28,332
           ---------- ---- ----- --------- ---------  -------------- ------
19 ZIM
 SHANGHAI         ZIM 2002 4,992  10 years 16,100(14)    August 2012 27,801
           ---------- ---- ----- --------- ---------  -------------- ------
20 ZIM
 PIRAEUS(ii)      ZIM 2004 4,992  10 years 18,150(15)     March 2014 24,145
           ---------- ---- ----- --------- ---------  -------------- ------
21 OAKLAND     Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 31,297(16) September 2016 31,291
           ---------- ---- ----- --------- ---------  -------------- ------
22 NEW
 YORK          Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 31,282(16)   October 2016 31,274
           ---------- ---- ----- --------- ---------  -------------- ------
23
 SINGAPORE     Hapag
 EXPRESS        Lloyd 2000 4,890   8 years 31,317(16)      July 2016 31,312
           ---------- ---- ----- --------- ---------  -------------- ------
24
 MSC MANDRAKI     MSC 1988 4,828 2.8 years 13,500(17)    August 2012 20,201
           ---------- ---- ----- --------- ---------  -------------- ------
25 MSC MYKONOS    MSC 1988 4,828 3.2 years 13,500(18) September 2012 19,577
           ---------- ---- ----- --------- ---------  -------------- ------
26
 MSC ANTWERP      MSC 1993 3,883   3 years 17,250(19)     April 2012 18,949
           ---------- ---- ----- --------- ---------  -------------- ------
27 MSC WASHINGTON MSC 1984 3,876 3.2 years 17,250(20)  February 2013 18,344
           ---------- ---- ----- --------- ---------  -------------- ------
28 MSC KYOTO      MSC 1981 3,876 3.1 years 17,250(21)      June 2013 18,238
           ---------- ---- ----- --------- ---------  -------------- ------
29 MSC AUSTRIA    MSC 1984 3,584 3.7 years 17,250(22)  November 2012 19,103
           ---------- ---- ----- --------- ---------  -------------- ------
30 KARMEN (iii)   HMM 1991 3,351 0.2 years    10,000   February 2011 10,000
           ---------- ---- ----- --------- ---------  -------------- ------
31 RENA (iv)      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
           ---------- ---- ----- --------- ---------  -------------- ------
           Evergreen
33 GARDEN(v)   Marine 1984 2,922   5 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
34 GENIUS  Evergreen
 I(v)          Marine 1984 2,922 3.3 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
           Evergreen
35 GATHER(v)   Marine 1984 2,922   5 years    15,200   November 2012 15,200
           ---------- ---- ----- --------- ---------  -------------- ------
36 GIFTED(vi) Evergreen
               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 MSC NAMIBIA    MSC 1977 1,654 4.8 years 11,500(23)      July 2012 12,876
           ---------- ---- ----- --------- ---------  -------------- ------
39 MSC SUDAN      MSC 1976 1,630   3 years 11,250(24)      June 2011 13,019
           ---------- ---- ----- --------- ---------  -------------- ------
40 MSC SIERRA     MSC 1977 1,630 3.7 years 11,250(25)       May 2012 12,847
           ---------- ---- ----- --------- ---------  -------------- ------
41 MSC TUSCANY    MSC 1978 1,468 1.9 years 12,000(26)    August 2012  7,985
           ---------- ---- ----- --------- ---------  -------------- ------
42 MSC FADO       MSC 1978 1,181   2 years     7,400        May 2012  7,400
           ---------- ---- ----- --------- ---------  -------------- ------
43 HORIZON       OACL 1991 1,068 7.1 years     7,625      April 2012  7,625
           ---------- ---- ----- --------- ---------  -------------- ------


Newbuildings List
                                                                   Average
                                                                    Daily
                                                                   Charter
                                                                    Rate
                                                                    Until
                                               Current            Earliest
                                                Daily             Expiry of
                                               Charter              Charter
                                         Time    Hire   Expiration   (U.S.
 Vessel            Capacity Expected    Charter  (U.S.       of    dollars)
  Name    Charterer (TEU) Delivery Date Term(1) dollars) Charter(1)    2
            ------ ----- ------------- -------- ------ ------------- ------
Newbuilds
 (27)
            ------ ----- ------------- -------- ------ ------------- ------
1 H 1068A      MSC 9,000 November 2013 10 years 43,000 November 2023 43,000
            ------ ----- ------------- -------- ------ ------------- ------
2 H 1069A      MSC 9,000 December 2013 10 years 43,000 December 2023 43,000
            ------ ----- ------------- -------- ------ ------------- ------
3 H 1070A      MSC 9,000  January 2014 10 years 43,000  January 2024 43,000
            ------ ----- ------------- -------- ------ ------------- ------

(1)Charter terms and expiration dates are based on the earliest date charters could expire.

(2)This average rate is calculated based on contracted charter rates for the days remaining between October 15, 2010 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)The vessel will be re-delivered from current charterer MSC between January 24, 2011 and January 30, 2011, in return for our payment to MSC of $9.5 million, at which time it will be delivered to charterer HMM for a time charter until March 25, 2012 at the earliest at a rate of $44,000 per day.

(5) This charter rate changes on January 1, 2011 to $34,875 per day, on January 1, 2012 to $30,375 and on May 8, 2014 to $26,100 per day until the earliest redelivery date.

(6)This charter rate changes on January 1, 2011 to $34,875 per day, 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.

(7)This charter rate changes on January 1, 2011 to $34,875 per day, on January 1, 2012 to $30,375 and on August 24, 2014 to $26,100 per day until the earliest redelivery date.

(8)This charter rate changes on January 1, 2011 to $29,875 per day, on January 1, 2012 to $25,375 per day and on October 20, 2014 to $26,100 per day until the earliest redelivery date.

(9)This charter rate changes on January 1, 2011 to $34,875 per day, on January 1, 2012 to $30,375 per day and on December 4, 2014 to $26,100 per day until the earliest redelivery date.

(10)This charter rate changes on January 1, 2011 to $34,500 per day, 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.

(11)This charter rate changes on January 1, 2011 to $34,875 per day, 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.

(12)This charter rate changes on January 1, 2011 to $34,875 per day, 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.

(13)This charter rate changes on January 1, 2011 to $18,189 per day, 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 escalates on October 28, 2010 to $16,205 per day, on January 1, 2011 to $18,189 per day, 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.

(15)This charter rate escalates on January 1, 2011 to $20,013 per day, 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.

(16)This charter rate changes on January 1, 2011 to $35,000 per day and on January 1, 2012 to $30,500 per day until the earliest redelivery.

(17)This charter rate escalates on January 11, 2011 to $22,200 per day 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.

(18)This charter escalates on January 5, 2011 to $22,200 per day 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.

(19)This charter rate escalates on January 4, 2011 to $20,000 per day 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.

(20)This charter rate changes on January 3, 2011 to $20,000 per day and on December 14, 2011 to $17,250 per day until the earliest redelivery date.

(21)This charter rate changes on January 8, 2011 to $20,000 per day and on December 19, 2011 to $17,250 per day until the earliest redelivery date.

(22)This charter rate changes on January 3, 2011 to $21,100 per day and on December 29, 2011 to $17,250 per day until the earliest redelivery date.

(23)This charter rate changes on January 6, 2011 to $14,000 per day and on December 17, 2011 to $11,500 per day until the earliest redelivery date.

(24)This charter rate escalates on January 14, 2011 to $14,000 per day until the earliest redelivery date.

(25)This charter rate changes on January 9, 2011 to $14,000 per day and on December 20, 2011 to $11,250 per day until the earliest redelivery date.

(26)This charter rate changes on October 26, 2010 to $7,920 per day, until the end of the period.

(27)Each of the newbuild contracts is conditioned upon our ability to obtain certain financing by November 30, 2010.

(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) The vessel was delivered on November 11, 2010. It has been chartered
      to Charterers Hyundai Merchant Marine for a period of 70 days +/-
      starting from about December 20, 2010 at a rate of $10,000 per day.
(iv)  The vessel was delivered on November 22, 2010.
(v)   Charterers have unilateral options to extend the charters of the
      vessels for periods until 2014, at a rate of $14,000 per day.
(vi)  Charterers has a unilateral option to extend the charter of the
      vessel for a period of one year +/-30 days at a rate of $14,000 per
      day.


                      COSTAMARE INC.
             Consolidated Statements of Income

                   Nine-months ended       Three-month ended
                    September 30,            September 30,
                ----------------------  ----------------------
(Expressed in
 thousands of
 U.S. dollars,
 except share and
 per share data)   2009        2010        2009        2010
                ----------  ----------  ----------  ----------
                                (Unaudited)

REVENUES:
Voyage revenues $  305,012  $  267,464  $   97,157  $   88,640

EXPENSES:
Voyage expenses     (2,694)     (1,567)       (313)       (544)
Vessels'
 operating
 expenses          (87,899)    (76,723)    (26,550)    (24,972)
General and
 administrative
 expenses             (727)       (775)       (468)       (110)
Management fees
 - related
 parties            (9,380)     (8,181)     (3,002)     (2,702)
Amortization of
 dry-docking
 and special
 survey costs       (5,940)     (6,137)     (2,049)     (2,058)
Depreciation       (53,227)    (52,573)    (17,118)    (18,126)
Gain (Loss) on
 sale of
 vessels             2,517       9,588      (1,347)      1,735
Foreign
 exchange gains
 / (losses)           (445)        (38)         99         109

                ----------  ----------  ----------  ----------
Operating
 income         $  147,217  $  131,058  $   46,409  $   41,972
                ----------  ----------  ----------  ----------

OTHER INCOME
 (EXPENSES):
Interest income $    2,501  $    1,161  $      923  $      525
Interest and
 finance costs     (66,443)    (54,105)    (17,635)    (19,921)
Other                4,287         270           3         (10)
Gain (loss) on
 derivative
 instruments         6,765      (8,963)     (5,642)      1,219

                ----------  ----------  ----------  ----------

                ----------  ----------  ----------  ----------
Total other
 expenses       $  (52,890) $  (61,637) $  (22,351) $  (18,187)
                ----------  ----------  ----------  ----------

                ----------  ----------  ----------  ----------
Net Income      $   94,327  $   69,421  $   24,058  $   23,785
                ==========  ==========  ==========  ==========

Earnings per
 Share
Basic and
 diluted net
 income per
 share          $     2.01  $     1.48  $     0.51  $     0.51
                ==========  ==========  ==========  ==========
Basic and
 diluted
 weighted
 average number
 of common
 shares         47,000,000  47,000,000  47,000,000  47,000,000
                ==========  ==========  ==========  ==========


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

                   Nine-months ended       Three-month ended
                    September 30,            September 30,
                ----------------------  ----------------------
(Expressed in
 thousands of
 U.S. dollars,
 except share and
 per share data)   2009        2010        2009        2010
                ----------  ----------  ----------  ----------
                                 (Unaudited)

Net Income      $   94,327  $   69,421  $   24,058  $   23,785
Accrued charter
 revenue           (11,970)    (14,624)     (9,603)      3,788
Gain (Loss) on
 sale of
 vessels            (2,517)     (9,588)      1,347      (1,735)
Gain (loss) on
 derivative
 instruments        (6,765)      8,963       5,642      (1,219)

                ----------  ----------  ----------  ----------
Adjusted Net
 income         $   73,075  $   54,172  $   21,444  $   24,619
                ==========  ==========  ==========  ==========
Adjusted
 Earnings per
 Share          $     1.55  $     1.15  $     0.46  $     0.52
                ==========  ==========  ==========  ==========
Weighted
 average number
 of shares      47,000,000  47,000,000  47,000,000  47,000,000
                ==========  ==========  ==========  ==========

* 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 and nine months ended September 30, 2010 and 2009.
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.




                         COSTAMARE INC.
                  Consolidated Balance Sheets

                                                  As of         As of
                                               December 31,  September 30,
                                              -------------  -------------
(Expressed in thousands of U.S. dollars)          2009           2010
                                              -------------  -------------
                                                (Audited)     (Unaudited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents                     $      12,282  $      30,974
Restricted cash                                       4,248          3,660
Receivables                                           3,135          5,199
Inventories                                          11,479          9,004
Due from related parties                                419         12,490
Fair value of derivatives                                44            855
Insurance claims receivable                             676            740
Vessels held for sale                                 2,951              -
Investments                                           8,188          6,070
Accrued charter revenue                               3,218          5,032
Prepayments and other                                 1,665          1,972
                                              -------------  -------------
  Total current assets                        $      48,305  $      75,996
                                              -------------  -------------

FIXED ASSETS, NET:
Advances for vessels acquisitions             $      94,455  $           -
Vessels, net                                      1,465,644      1,527,449
                                              -------------  -------------
  Total fixed assets, net                     $   1.560.099  $   1,527,449
                                              -------------  -------------

OTHER NON-CURRENT ASSETS:
Investments                                   $       6,190  $           -
Deferred Initial Public Offering Costs                    -          1,681
Deferred charges, net                                27,519         31,754
Due from related companies                            7,887              -
Restricted cash                                      40,252         37,925
Accrued charter revenue                              20,048         32,858
                                              -------------  -------------
Total assets                                  $   1,710,300  $   1,707,663
                                              =============  =============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt             $      93,856  $     107,969
Accounts payable                                      8,822          6,253
Due to related parties                                7,253              -
Accrued liabilities                                   6,356          6,578
Unearned revenue                                      2,136          2,653
Fair value of derivatives                            52,305         47,450
Dividends payable                                    10,000              -
Other current liabilities                             2,543          1,686
                                              -------------  -------------
  Total current liabilities                   $     183.271  $     172,589
                                              -------------  -------------


OTHER NON-CURRENT LIABILITIES
Long-term debt, net of current portion        $   1,341,737  $   1,264,164
Fair value of derivatives, non current
 portion                                             28,855         90,983
Unearned revenue, net of current portion              1,215            731
                                              -------------  -------------
  Total other non-current liabilities         $   1,371,807  $   1,355,878
                                              -------------  -------------

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

STOCKHOLDERS' EQUITY:
Common stock                                  $           -  $           3
Additional paid-in capital                          372,034        374,431
Accumulated other comprehensive loss                (60,648)      (108,495)
Retained earnings (accumulated deficit)            (156,164)       (86,743)
                                              -------------  -------------
  Total stockholders' equity (deficit)        $     155,222  $     179,196
                                              -------------  -------------

                                              -------------  -------------
Total liabilities and stockholders' equity    $   1,710,300  $   1,707,663
                                              =============  =============




                             COSTAMARE INC.
                        Statements of Cash Flows

                              Nine-months ended       Three-month ended
                                September 30,            September 30,
                            ----------------------  ----------------------
(Expressed in thousands of
 U.S. dollars)                 2009        2010        2009        2010
                            ----------  ----------  ----------  ----------
                                              (Unaudited)

(Expressed in
thousands
of U.S. dollars)

Cash Flows from Operating
 Activities:
Net income:                 $   94,327  $   69,421  $   24,058  $   23,785
Adjustments to reconcile
 net income (loss) to net
 cash provided by operating
  activities:
Depreciation                    53,227      52,573      17,118      18,126
Amortization of financing
 costs                             518       1,139         167         688
Amortization of deferred
 drydocking and special
 surveys                         5,940       6,137       2,049       2,058
Amortization of unearned
 revenue                        (3,267)       (486)     (2,535)       (164)
(Gain) Loss on sale of
 vessels                        (2,517)     (9,588)      1,347      (1,735)
Gain on sale of available
 for sale securities              (108)       (148)          -        (148)
Loss (gain) on  derivative
 instruments                    (6,765)      8,963       5,642      (1,219)
Changes in operating assets
 and liabilities:
Receivables                 $   (2,580) $   (2,064) $      927  $   (1,861)
Due from related parties         2,577      (4,184)        372      (3,795)
Inventories                      2,771       2,475         403         890
Claims receivable                  666         (64)        (14)          4
Prepayments and other             (156)       (307)       (439)        763
Accounts payable                 1,391      (2,569)       (673)      1,786
Due to related parties           1,364      (7,253)     (1,957)     (6,578)
Accrued liabilities             (5,605)        223         (41)     (1,847)
Deferred revenue                (4,375)        519      (1,340)        (61)
Other liabilities               (1,701)       (292)        (82)        572
Dry-dockings                    (5,392)    (10,877)          -      (2,107)
Accrued charter revenue        (11,970)    (14,624)     (9,603)      3,788
                            ----------  ----------  ----------  ----------
Net Cash from Operating
 Activities                 $  118,345  $   88,994  $   35,399  $   32,945
                            ----------  ----------  ----------  ----------

Cash Flows from Investing
 Activities:
Sale of available for sale
 securities                 $   21,421  $    8,030  $    4,155  $    8,030
Vessel acquisitions/
 Addition to vessel cost       (32,272)    (28,281)    (32,272)          -
Proceeds from the sale of
 vessels                        46,314      22,731      30,858       3,664
                            ----------  ----------  ----------  ----------
Net Cash provided by
 Investing Activities      $   35,463  $    2,480  $    2,741  $    11,694
                           ----------  ----------  ----------  -----------

Cash Flows from Financing
 Activities:
Stockholders'
 contributions             $        -  $    2,400           -        2,400
Repayment of long-term
 debt                         (69,155)    (63,460)    (19,400)     (19,400)
Payments for financing
 costs                              -      (2,956)          -            -
Initial public offering
 related costs                      -      (1,681)          -         (903)
Distribution paid to
 stockholders with
 reorganization              (131,000)          -           -            -
Dividends paid                (30,230)    (10,000)    (27,230)           -
(Increase) decrease in
 restricted cash                3,369       2,915       1,863        1,784
                           ----------  ----------  ----------  -----------
Net Cash used in
 Financing Activities      $ (227,016) $  (72,782)    (44,767)     (16,119)
                           ----------  ----------  ----------  -----------

Net increase in cash and
 cash equivalents          $  (73,208) $   18,692      (6,627)      28,520
Cash and cash equivalents
 at beginning of period        90,262      12,282      23,681        2,454
Cash and cash equivalents
 at end of period              17,054      30,974      17,054       30,974
                           ==========  ==========  ==========  ===========






           Reconciliation of Net Income to Adjusted EBITDA

                                   Nine-months ended     Three-month ended
                                     September 30,          September 30,
                                 --------------------  -------------------
(Expressed in thousands of
 U.S. dollars)                      2009       2010       2009      2010
                                 ---------  ---------  ---------  --------

Net Income                       $  94,327  $  69,421  $  24,058  $ 23,785
Interest and
finance costs                       66,443     54,105     17,635    19,921

Interest income                     (2,501)    (1,161)      (923)     (525)
Depreciation                        53,227     52,573     17,118    18,126
Amortization of dry-docking and
 special survey costs                5,940      6,137      2,049     2,058
                                 --------- ----------  ---------  --------
EBITDA                             217,436    181,075     59,937    63,365
Accrued charter revenue            (11,970)   (14,624)    (9,603)    3,788
Gain (Loss) on sale of vessels      (2,517)    (9,588)     1,347    (1,735)
Gain (loss) on derivative
 instruments                        (6,765)     8,963      5,642    (1,219)
                                 --------- ----------  ---------  --------
Adjusted EBITDA                  $ 196,184  $ 165,826  $  57,323  $ 64,199
                                 ========= ==========  =========  ========

Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, amortization of deferred drydocking & 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 and nine months ended September 30, 2010 and 2009. 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.

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