-- 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