Capital Product Partners (CPLP) Tops Q4 EPS by 7c, Revenues Beat

Capital Product Partners (NASDAQ: CPLP) reported Q4 EPS of $0.30, $0.07 better than the analyst estimate of $0.23. Revenue for the quarter came in at $27.7 million versus the consensus estimate of $25.95 million.

• Highlights
• Quarterly Revenues, Expenses and Net Income from continuing operations of $27.7 million, $18.2 million and $5.8 million respectively for the fourth quarter of 2019.
• Operating Surplus1 from continuing operations and Operating Surplus after the quarterly allocation to the capital reserve of $15.0 million and $7.3 million respectively.
• Completed in January 2020 the acquisition of three 10,000 TEU containers with long term charters to Hapag-Lloyd.
• Completed during the fourth quarter of 2019 exhaust gas cleaning systems (“scrubber”) installation on three additional 5,000 TEU container vessels.
• Entered into a term sheet to partially refinance our 2017 credit facility expected to generate approximately $35.4 million of additional liquidity and decrease annual debt amortization.
• Increased common unit distribution to $0.35 per quarter.

Management Commentary

Mr. Jerry Kalogiratos, Chief Executive Officer of our General Partner, commented:

“The fourth quarter of 2019 has been a pivotal quarter for the Partnership. We have announced and now completed an important acquisition of three 10,000 TEU container vessels, which is expected to substantially increase our distributable cash flow per unit, while maintaining cash flow visibility as the vessels’ charters run into 2024. At the same time, through this acquisition, we increased the size of our fleet by approximately 30%, further expanding into the attractive Neo-Panamax container segment and diversifying our customer base with the addition of Hapag-Lloyd.

Moreover, we are in the process of completing an important refinancing of three of our vessels, which is expected to lower the debt amortization schedule and the weighted average interest margin we currently have under our 2017 credit facility, while also generating additional liquidity for the Partnership to fuel further growth.

In addition, we have now successfully completed the scrubber retrofit on four of our vessels out of a total of seven vessels scheduled for scrubber retrofit and delivered them under their respective charters.

Last but not least, we have increased our fourth quarter 2019 common unit distribution by approximately 11% and set forth a new quarterly distribution guidance of $0.35 per common unit. The distribution increase in advance of the earnings impact of the three-vessel acquisition demonstrates the Partnership’s confidence in its ability going forward to continue to grow its asset base, combined with a substantial quarterly common unit distribution.”

For earnings history and earnings-related data on Capital Product Partners (CPLP) click here.

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