Costamare Inc. Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2013
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 10/23/13 -- Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the third quarter and nine months ended September 30, 2013.
Voyage revenues of $110.1 million and $301.7 million for the three and the nine months ended September 30, 2013, respectively.
Voyage revenues adjusted on a cash basis of $114.1 million and $312.4 million for the three and the nine months ended September 30, 2013, respectively.
Adjusted EBITDA of $77.9 million and $206.7 million for the three and the nine months ended September 30, 2013, respectively.
Net income of $20.9 million and $76.2 million for the three and the nine months ended September 30, 2013, respectively.
Net income available to common stockholders of $20.4 million or $0.27 per share and $75.7 million or $1.01 per share for the three and the nine months ended September 30, 2013, respectively.
Adjusted Net income available to common stockholders of $28.7 million or $0.38 per share and $78.4 million or $1.05 per share for the three and nine months ended September 30, 2013, respectively.
See "Financial Summary" and "Non-GAAP Measures" below for additional detail.
On August 5 and September 2, 2013, the Company took delivery of the 8,827 TEU newbuild containership vessels Valiant and Valence, respectively, which were both built by Sungdong Shipbuilding and Marine Engineering in South Korea. Upon delivery, both vessels commenced their long term charters with members of the Evergreen Group ("Evergreen").
In July 2013, pursuant to the Framework Agreement with York Capital Management ("York"), jointly-owned entities entered into two shipbuilding contracts for the construction of two container vessels of about 9,000 TEU capacity, subject to upgrade, to be delivered by the end of 2015. The Company agreed to participate in each of the newbuilding contracts by investing 49% of the share capital in the jointly-owned entities.
The Company sold the 1993-built, 3,883 TEU containership MSC Antwerp, for demolition for a sale price of approximately $7.8 million. The vessel was delivered to its buyers on September 9, 2013. The sale of the MSC Antwerp resulted in a book loss of $5.9 million.
On August 6, 2013, the Company completed a public offering of 2.0 million shares of its 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (the "Series B Preferred Stock"). The gross proceeds from the offering before the underwriting discount and other offering expenses were $50.0 million. We plan to use the net proceeds of this offering for general corporate purposes, including vessel acquisitions or investments under the Framework Agreement.
On October 1, 2013, the Company declared a cash dividend of $0.3654 per share on its 7.625% Series B Preferred Stock for the period from August 6, 2013 to October 14, 2013. The dividend was paid on October 15, 2013 to all Series B Preferred Stock holders of record as of October 11, 2013. This was the first cash dividend on its Series B Preferred Stock that the Company has declared since the commencement of trading of its Series B Preferred Stock on the New York Stock Exchange.
On October 8, 2013, the Company declared a common stock dividend for the third quarter ended September 30, 2013, of $0.27 per share, payable on November 6, 2013 to stockholders of record at the close of trading of the Company's common stock on the New York Stock Exchange on October 23, 2013. This will be the Company's twelfth consecutive quarterly common stock dividend since its common stock commenced trading on the New York Stock Exchange.
"During the third quarter of the year, the Company delivered positive results.
In accordance with our newbuilding program, we accepted delivery of the fifth and sixth 9,000 TEU newbuild containership vessels out of a series of ten. Both vessels commenced their charters. This addition to the fleet, together with the newbuildings already delivered and the remaining four vessels currently on order and subject to charters, will contribute in excess of $1.3 billion of contracted revenues throughout the duration of their charters.
Regarding new transactions, together with our partners, York Capital, we ordered two vessels with a capacity of 9,000 TEU, subject to upgrade, to be delivered by the end of 2015. We are participating in each of the two contracts with a 49% stake.
Despite continuing challenging market conditions, our re-chartering risk is minimized. The charters for the vessels opening in 2014 account for approximately 3% of our 2014 contracted revenues.
Finally, on October 1 and on October 8 we declared a dividend of $ 0.3654 per share on the 7.625% Series B Redeemable Perpetual Preferred Stock and $ 0.27 per share on the Company's common stock respectively. Consistent with our dividend policy, we continue to offer an attractive dividend, which we consider to be sustainable based on the size of our contracted cash flows, the quality of our charterers and the prudent management of our balance sheet."
(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period, and during the last years of such charter cash received will exceed revenue recognized on a straight line basis
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash "Accrued charter revenue" recorded under charters with escalating charter rates. However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter party agreements are described in the notes to the "Fleet List" below.
(3) Adjusted net income, adjusted earnings per share, EBITDA and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and net income to EBITDA and adjusted EBITDA below.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the nine-month and three-month periods ended September 30, 2013 and September 30, 2012. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income, (iii) Adjusted earnings per share, (iv) EBITDA and (v) Adjusted EBITDA.
Adjusted Net income and Adjusted Earnings per Share represent net income before non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, gain/ (loss) on sale of vessels, realized (gain) /loss on Euro/USD forward contracts and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net income and Adjusted Earnings per Share are not recognized measurements under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted Net income and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net income and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net income and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net income and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net income and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net income and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
EBITDA represents net income before interest and finance costs, interest income, depreciation and amortization of deferred dry-docking and special survey costs. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, amortization of deferred dry-docking and special survey costs, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, gain/ (loss) on sale of vessels, realized gain/ (loss) on Euro/USD forward contracts and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the time difference between the revenue recognition and the cash collection. However, EBITDA and Adjusted EBITDA are not recognized measurements under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of EBITDA and Adjusted EBITDA are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that EBITDA and Adjusted EBITDA are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of EBITDA and Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.
During the three-month periods ended September 30, 2013 and 2012, we had an average of 51.0 and 47.1 vessels, respectively, in our fleet. In the three-month period ended September 30, 2013, we accepted delivery of the newbuild vessels Valiant and Valence with an aggregate TEU capacity of 17,654, the secondhand vessel X-Press Padma with a TEU capacity of 1,645, which was acquired pursuant to the Framework Agreement with York, and we sold the vessel MSC Antwerp, with a TEU capacity of 3,883. Furthermore, pursuant to the Framework Agreement with York, we signed shipbuilding contracts with a shipyard for the construction of two container vessels of about 9,000 TEU capacity, subject to upgrade. In the three-month period ended September 30, 2012, we accepted delivery of the secondhand vessels Stadt Luebeck and Messini with an aggregate TEU capacity of 3,536, and we sold the secondhand vessel Horizon for scrap with a TEU capacity of 1,068. In the three-month periods ended September 30, 2013 and 2012, our fleet ownership days totaled 4,696 and 4,337 days, respectively. Ownership days are the primary driver of voyage revenue and vessels' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Voyage Revenue
Voyage revenue increased by 16.0%, or $15.2 million, to $110.1 million during the three-month period ended September 30, 2013, from $94.9 million during the three-month period ended September 30, 2012. This increase is mainly due to (i) revenue earned by the newbuild vessels delivered to us during the nine month period ended September 30, 2013; partly offset by (ii) decreased charter rates in certain of our vessels during the three-month period ended September 30, 2013, compared to the three-month period ended September 30, 2012, and (iii) revenues not earned by vessels which were sold for scrap during the nine month period ended September 30, 2013.
Voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue"), increased by 16.7%, or $16.3 million, to $114.1 million during the three-month period ended September 30, 2013, from $97.8 million during the three-month period ended September 30, 2012. This increase is mainly due to (i) revenue earned by the newbuild vessels delivered to us during the nine month period ended September 30, 2013; partly offset by (ii) decreased charter rates in certain of our vessels during the three-month period ended September 30, 2013, compared to the three-month period ended September 30, 2012, and (iii) revenues not earned by vessels which were sold for scrap during the nine month period ended September 30, 2013.
Voyage Expenses
Voyage expenses decreased by 64.7% or $1.1 million, to $0.6 million during the three-month period ended September 30, 2013, from $1.7 million during the three-month period ended September 30, 2012. Voyage expenses mainly include (i) off-hire expenses of our fleet, mainly related to fuel consumption and (ii) third party commissions. The decrease during the three month period ended September 30, 2013, compared to the three month period ended September 30, 2012, is mainly attributable to the decreased off-hire expenses, mainly relating to bunkers consumption.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.8 million during the three month period ended September 30, 2013 and in the amount of $0.7 million during the three-month period ended September 30, 2012, represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized gain/ (loss) under derivative contracts entered into in relation to foreign currency exposure, increased by 4.6%, or $1.3 million, to $29.6 million during the three-month period ended September 30, 2013, from $28.3 million during the three-month period ended September 30, 2012. The increase was partly attributable to the increased ownership days of our fleet during the three-month period ended September 30, 2013 compared to the three-month period ended September 30, 2012.
General and Administrative Expenses
General and administrative expenses were $1.0 million during the three-month period ended September 30, 2013 and for the three-month period ended September 30, 2012. General and administrative expenses for the three-month periods ended September 30, 2013 and 2012, include $0.25 million, respectively, for the services of the Company's officers in aggregate charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Management Fees - related parties
Management fees paid to our managers increased by 13.2%, or $0.5 million, to $4.3 million during the three-month period ended September 30, 2013, from $3.8 million during the three-month period ended September 30, 2012. The increase was primarily attributable to (i) the inflation related upward adjustment by 4% of the management fee for each vessel (effective January 1, 2013), as provided under our group management agreement and (ii) the increased average number of vessels during the three month period ended September 30, 2013, compared to the three month period ended September 30, 2012.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $2.1 million for the three-month period ended September 30, 2013 and $2.1 million for the three-month period ended September 30, 2012. During the three-month periods ended September 30, 2013 and 2012, two vessels and four vessels, respectively, underwent their special survey. During the three-month period ended September 30, 2013, three vessels (one of which was in process as at June 30, 2013) completed their respective works. During the three-month period ended September 30, 2012, four vessels completed their respective works.
Depreciation
Depreciation expense increased by 16.7%, or $3.4 million, to $23.7 million during the three-month period ended September 30, 2013, from $20.3 million during the three-month period ended September 30, 2012. The increase was mainly attributable to the depreciation expense charged for the six newbuilding vessels delivered to us during the nine month period ended September 30, 2013, partly offset by the depreciation expense not charged for the vessels sold for scrap during the nine month period ended September 30, 2013.
Loss on Sale/Disposal of Vessels
During the three-month period ended September 30, 2013, we recorded a loss of $5.9 million from the sale of one vessel. During the three-month period ended September 30, 2012, we recorded a net loss of $5.6 million from the sale of the vessel Horizon (including the effect of the partial reversal of a provision recorded in 2011 for costs associated with the grounding of the vessel Rena).
Foreign Exchange Losses
Foreign exchange losses were $0.1 million during the three-month period ended September 30, 2013 and $0.1 million during the three-month period ended September 30, 2012.
Interest Income
Interest income decreased by 100.0% or $0.4 million, to nil during the three-month period ended September 30, 2013, from $0.4 million during the three month period ended September 30, 2012. The decrease is mainly attributable to the decreased average cash balance during the three month period ended September 30, 2013, compared to the three month period ended September 30, 2012.
Interest and Finance Costs
Interest and finance costs increased by 16.3%, or $3.2 million, to $22.8 million during the three-month period ended September 30, 2013, from $19.6 million during the three-month period ended September 30, 2012. The increase is mainly attributable to the increased interest expense charged to the consolidated income statement in relation with the loan facilities of the six newbuild vessels which were delivered to us during the nine month period ended September 30, 2013.
Equity Gain on Investments
The equity gain on investments of $0.3 million represents our share of the net earnings of five jointly owned ship-owning companies acquired pursuant to the Framework Agreement with York. We hold 49% of the capital stock of each ship-owning company.
Gain on Derivative Instruments
The fair value of our 27 interest rate derivative instruments which were outstanding as of September 30, 2013, equates to the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2013, the fair value of these 27 interest rate derivative instruments in aggregate amounted to a liability of $114.7 million. Twenty-six of the 27 interest rate derivative instruments that were outstanding as at September 30, 2013, qualified for hedge accounting and the effective portion of the change in their fair value is recorded in "Other Comprehensive Income" ("OCI"). For the three-month period ended September 30, 2013, a net gain of $1.8 million has been included in "OCI" and a gain of $1.4 million has been included in "Gain/ (loss) on derivative instruments" in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended September 30, 2013.
Net cash flows provided by operating activities for the three-month period ended September 30, 2013, increased by $11.4 million to $50.8 million, compared to $39.4 million for the three-month period ended September 30, 2012. The increase was primarily attributable to increased cash from operations of $16.4 million due to cash generated from the charters of the six newbuild vessels delivered to us during the nine month period ended September 30, 2013 and to decreased dry-docking payments of $2.5 million, partly offset by unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $3.3 million and increased payments for interest (including swap payments) of $4.3 million.
Net cash used in investing activities was $ 148.2 million in the three-month period ended September 30, 2013, which consisted of (a) $158.4 million advance payments for the construction and purchase of three newbuild vessels, (b) $4.3 million in payments for the acquisition of one secondhand vessel, (c) $8.8 million in payments, pursuant to the Framework Agreement with York, to hold a 49% equity interest in jointly-owned companies, (d) $7.2 million net proceeds we received from the sale for scrap of MSC Antwerp and (e) $16.0 million received, pursuant to the Framework Agreement with York, for York's 51% equity interest in the ship-owning companies which own the vessels Petalidi, Ensenada Express and X-Press Padma and for initial working capital for such ship-owning companies.
Net cash used in investing activities was $55.3 million in the three-month period ended September 30, 2012, which consisted of (a) $39.9 million advance payments for the construction and purchase of four newbuild vessels, (b) $18.8 million in payments for the acquisition of two secondhand vessels and (c) $3.4 million we received from the sale of one vessel.
Net cash provided by financing activities was $105.4 million in the three-month period ended September 30, 2013, which mainly consisted of (a) $46.3 million of indebtedness that we repaid, (b) $126.0 million we drew down from three of our credit facilities (c) $20.2 million we paid for dividends to our stockholders for the second quarter of 2013 and (d) $48.0 million net proceeds we received from our public offering in August 2013, of 2.0 million shares of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Shares, net of underwriting discounts and expenses incurred in the offering.
Net cash used in financing activities was $8.6 million in the three month period ended September 30, 2012, which mainly consists of (a) $39.1 million of indebtedness that we repaid, (b) $41.9 million we drew down from three of our credit facilities, (c) $18.3 million we paid for dividends to our stockholders for the second quarter of the year 2012
During the nine month periods ended September 30, 2013 and 2012, we had an average of 49.0 and 46.7 vessels, respectively, in our fleet. In the nine-month period ended September 30, 2013, we accepted delivery of the newbuild vessels MSC Athens, MSC Athos, Valor, Value, Valiant and Valence with an aggregate TEU capacity of 52,962, the secondhand vessel Venetiko with a TEU capacity of 5,928, the secondhand vessels Petalidi, Ensenada Express and X-Press Padma, which were acquired pursuant to the Framework Agreement with York, with an aggregate TEU capacity of 8,383, and we sold three vessels MSC Washington, MSC Austria and MSC Antwerp with an aggregate TEU capacity of 11,343. Furthermore, pursuant to the Framework Agreement with York, we signed shipbuilding contracts with a shipyard for the construction of two container vessels of about 9,000 TEU, subject to upgrade. In the nine-month period ended September 30, 2012, we accepted delivery of five secondhand vessels MSC Ulsan, Koroni, Kyparissia, Stadt Luebeck and Messini with an aggregate TEU capacity of 15,352 and we sold four vessels Gather, Gifted, Genius I and Horizon with an aggregate TEU capacity of 9,834. In the nine-month periods ended September 30, 2013 and 2012, our fleet ownership days totaled 13,373 and 12,789 days, respectively. Ownership days are the primary driver of voyage revenue and vessels operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Voyage Revenue
Voyage revenue increased by 3.7%, or $10.7 million, to $301.7 million during the nine-month period ended September 30, 2013, from $291.0 million during the nine-month period ended September 30, 2012. The increase in Voyage revenue is mainly due to (i) the revenue earned by the six newbuild vessels delivered to us during the nine month period ended September 30, 2013; partly offset (ii) by decreased charter rates in certain of our vessels during the nine-month period ended September 30, 2013, compared to the nine-month period ended September 30, 2012, and (iii) revenues not earned by vessels which were sold for scrap during the nine month period ended September 30, 2013.
Voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue"), increased by 5.9%, or $17.5 million, to $312.4 million during the nine-month period ended September 30, 2013, from $294.9 million during the nine-month period ended September 30, 2012. The increase is attributable to the cash revenue earned by the six newbuild vessels delivered to us during the nine month period ended September 30, 2013; partly offset by cash revenue not earned from vessels disposed during the nine month period ended September 30, 2013.
Voyage Expenses
Voyage expenses decreased by 37.5%, or $1.5 million, to $2.5 million during the nine-month period ended September 30, 2013, from $4.0 million during the nine-month period ended September 30, 2012. The decrease was primarily attributable to the decreased off-hire expenses of our fleet, mainly bunkers consumption and by the decreased third party commissions charged to us during the nine month period ended September 30, 2013, compared to the nine month period ended September 30, 2012.
Voyage Expenses - related parties
Voyage expenses - related parties increased by 4.5% or $0.1 to $2.3 million during the nine-month period ended September 30, 2013, from $2.2 million during the nine-month period ended September 30, 2012 and represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Vessels' Operating Expenses
Vessels' operating expenses, which also includes the realized gain /(loss) under derivative contracts entered into in relation to foreign currency exposure, increased by 1.4% or $1.2 million to $85.9 million during the nine-month period ended September 30, 2013, from $84.7 million during the nine-month period ended September 30, 2012. The increase was mainly attributable to the increased ownership days of our fleet during the nine-month period ended September 30, 2013 compared to the nine-month period ended September 30, 2012.
General and Administrative Expenses
General and administrative expenses increased by 6.5%, or $0.2 million, to $3.3 million during the nine-month period ended September 30, 2013, from $3.1 million during the nine-month period ended September 30, 2012. Furthermore, General and administrative expenses for the nine-month periods ended September 30, 2013 and September 30, 2012, include $0.75 million, respectively, for the services of the Company's officers in aggregate charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Management Fees - related parties
Management fees paid to our managers increased by 7.9%, or $0.9 million, to $12.3 million during the nine-month period ended September 30, 2013, from $11.4 million during the nine-month period ended September 30, 2012. The increase was primarily attributable to (i) the inflation related upward adjustment by 4% of the management fee for each vessel (effective January 1, 2013), as provided under our group management agreement and (ii) the increased average number of vessels during the nine month period ended September 30, 2013, compared to the nine month period ended September 30, 2012.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs for the nine-month periods ended September 30, 2013 and 2012, was $6.1 million and $6.0 million, respectively. During the nine-month periods ended September 30, 2013 and 2012, seven vessels and six vessels, respectively, underwent their special surveys.
Depreciation
Depreciation expense increased by 8.3%, or $5.0 million, to $65.2 million during the nine-month period ended September 30, 2013, from $60.2 million during the nine-month period ended September 30, 2012. The increase was primarily attributable to the depreciation expense charged for the six newbuild vessels delivered to us during the nine month period ended September 30, 2013.
Gain/ (Loss) on Sale/Disposal of Vessels
During the nine-month period ended September 30, 2013, we recorded a net gain of $0.5 million from the sale of three vessels. During the nine-month period ended September 30, 2012, we recorded a net loss of $4.3 million mainly from the sale of four vessels (including the effect of the partial reversal of a provision recorded in 2011 for costs associated with the grounding of the vessel Rena).
Foreign Exchange Gains
Foreign exchange gains amounted to $0.2 million and $0.2 million during the nine-month periods ended September 30, 2013 and 2012, respectively.
Interest Income
During the nine-month period ended September 30, 2013, interest income decreased by 63.6%, or $0.7 million, to $0.4 million from $1.1 million during the nine-month period ended September 30, 2012.
Interest and Finance Costs
Interest and finance costs decreased by 1.6%, or $0.9 million, to $56.9 million during the nine-month period ended September 30, 2013, from $57.8 million during the nine-month period ended September 30, 2012. The decrease is mainly attributable to (i) the capitalized interest in relation with our newbuilding program, (ii) the decreased commitment fees charged to us, partly offset by the increased interest expense charged to our consolidated income statement in relation with the loan facilities of the six newbuild vessels which were delivered to us during the nine month period ended September 30, 2013.
Equity Gain on Investments
The equity gain on investments of $0.3 million represents our share of the net earnings of five jointly owned ship-owning companies acquired pursuant to the Framework Agreement with York. We hold 49% of the capital stock of each ship-owning company.
Gain/ (Loss) on Derivative Instruments
The fair value of our 27 interest rate derivative instruments which were outstanding as of September 30, 2013, equates to the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2013, the fair value of these 27 interest rate derivative instruments in aggregate amounted to a liability of $114.7 million. Twenty-six of the 27 interest rate derivative instruments that were outstanding as at September 30, 2013, qualified for hedge accounting and the effective portion of the change in their fair value is recorded in "Other Comprehensive Income" ("OCI"). For the nine-month period ended September 30, 2013, a gain of $59.1 million has been included in "OCI" and a gain of $7.0 million has been included in "Gain/ (loss) on derivative instruments" in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the nine-month period ended September 30, 2013.
Net cash flows provided by operating activities for the nine-month period ended September 30, 2013, increased by $5.5 million to $128.9 million, compared to $123.4 million for the nine-month period ended September 30, 2012. The increase was primarily attributable to increased cash from operations of $17.5 million due to cash generated from the charters of the six newbuild vessels delivered to us during the nine month period ended September 30, 2013 and to decreased dry-docking payments of $2.7 million, partly offset by unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $15.0 million and increased payments for interest (including swap payments) of $2.8 million.
Net cash used in investing activities was $513.1 million in the nine-month period ended September 30, 2013, which consisted primarily of (a) $482.4 million advance payments for the construction and purchase of ten newbuild vessels, (b) $51.9 million in payments for the acquisition of four secondhand vessels, (c) $8.8 million in payments, pursuant to the Framework Agreement with York, to hold a 49% equity interest in jointly-owned companies, (d) $13.9 million net proceeds we received from the sale for scrap of MSC Antwerp and MSC Austria (including $0.6 million in payments for expenses related to the sale of MSC Washington) and (e) $16.0 million we received, pursuant with the Framework Agreement with York, for York's 51% equity interest in the ship-owning companies of the vessels Petalidi, Ensenada Express and X-Press Padma and for initial working capital for such ship-owning companies.
Net cash used in investing activities was $162.0 million in the nine-month period ended September 30, 2012, which primarily consisted of (a) $109.0 million advance payments for the construction and purchase of seven newbuild vessels, (b) $73.7 million in payments for the acquisition of five secondhand vessels, and (c) $20.8 million we received from the sale of four vessels.
Net cash provided by financing activities was $237.3 million in the nine-month period ended September 30, 2013, which mainly consisted of (a) $120.5 million of indebtedness that we repaid, (b) $ 377.8 million we drew down from four of our credit facilities, (c) $60.6 million we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2012, and the first and second quarters of 2013 and (d) $48.0 million net proceeds we received from our public offering in August 2013 of 2.0 million shares of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Shares, net of underwriting discounts and expenses incurred in the offering.
Net cash provided by financing activities was $157.7 million in the nine-month period ended September 30, 2012, which mainly consisted of (a) $129.3 million of indebtedness that we repaid, (b) $241.2 million we drew down from five of our credit facilities, (c) $52.9 million, we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2011, and the first and second quarters of 2012 and (d) $100.6 million net proceeds we received from our follow-on offering in March 2012, net of underwriting discounts and expenses incurred in the offering.
As of September 30, 2013, we had a total cash liquidity of $ 175.1 million, consisting of cash, cash equivalents and restricted cash.
As of October 23, 2013, the following vessels were free of debt.
(*) Does not include three secondhand vessels acquired and two newbuild vessels ordered pursuant to the Framework Agreement with York, which are also free of debt.
As of October 23, 2013, we had outstanding commitments relating to our contracted newbuilds aggregating approximately $200.0 million payable in installments until the vessels are delivered.
On Thursday, October 24, 2013 at 8:30 a.m., EDT, Costamare's management team will hold a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-866-524-3160 (from the US), 0808 238 9064 (from the UK) or +1-412-317-6760 (from outside the US). Please quote "Costamare".
A replay of the conference call will be available until November 25, 2013. The United States replay number is +1-877-344-7529; the standard international replay number is +1-412-317-0088, and the access code required for the replay is: 10035479.
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website () under the "Investors" section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Costamare Inc. is one of the world's leading owners and providers of containerships for charter. The Company has 38 years of history in the international shipping industry and a fleet of 60 containerships, with a total capacity in excess of 350,000 TEU, including six newbuild containerships on order. Five of our containerships, including two newbuilds, have been acquired pursuant to the Framework Agreement with York Capital Management LLC by vessel-owning joint venture entities in which we hold a 49% equity interest. The Company's common stock and Series B Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE" and "CMRE PR B", respectively.
This earnings release contains "forward-looking statements". In some cases, you can identify these statements by forward-looking words such as "believe", "intend", "anticipate", "estimate", "project", "forecast", "plan", "potential", "may", "should", "could" and "expect" and similar expressions. These statements are not historical facts but instead represent only Costamare's belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare's control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in Costamare Inc.'s Annual Report on Form 20-F (File No. 001-34934) under the caption "Risk Factors".
The tables below provide additional information, as of October 23, 2013, about our fleet of 60 containerships, including our newbuilds on order and the vessels acquired pursuant to the Framework Agreement with York. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
Gregory Zikos
Chief Financial Officer
Konstantinos Tsakalidis
Business Development
Costamare Inc., Athens, Greece
Tel: (+30) 210-949-0050
Email:
Gus Okwu
Allison & Partners, New York
Telephone: (+1) 646-428-0638
Email:
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Unternehmensinformation / Kurzprofil:
Datum: 23.10.2013 - 20:12 Uhr
Sprache: Deutsch
News-ID 308749
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contact information:
Town:
ATHENS, GREECE
Kategorie:
Commercial & Investment Banking
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Die Pressemitteilung mit dem Titel:
"Costamare Inc. Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2013"
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