Costamare Inc. Reports Results for the First Quarter Ended March 31, 2015
ATHENS, GREECE -- (Marketwired) -- 04/28/15 -- Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the first quarter ended March 31, 2015.
- Voyage revenues of $120.9 million for the quarter ended March 31, 2015.
- Voyage revenues adjusted on a cash basis of $121.5 million for the quarter ended March 31, 2015.
- Adjusted EBITDA of $86.0 million for the quarter ended March 31, 2015.
- Net income of $26.3 million for the quarter ended March 31, 2015.
- Net income available to common stockholders of $23.3 million or $0.31 per share for the quarter ended March 31, 2015.
- Adjusted Net income available to common stockholders of $28.6 million or $0.38 per share for the quarter ended March 31, 2015.
- See "Financial Summary" and "Non-GAAP Measures" below for additional detail.
New Business Developments
- We entered into a new shipbuilding contract with HHIC-PHIL Inc. (Hanjin Heavy Philippines) for the construction of an 11,000TEU vessel. The vessel is expected to be delivered in December 2016. Pursuant to the Framework Agreement with York Capital, the Company holds a 49% equity interest in the relevant vessel-owning entity.
- The Company entered into the following chartering arrangements:
- Agreed to extend the charter of the 2000-built, 2,474TEU containership Areopolis with Evergreen for a period of minimum 4 and maximum 8 months starting from March 21, 2015 at a daily rate of $7,200.
- Agreed to extend the charter of the 1997-built, 2,458TEU containership Messini with Evergreen for a period of minimum 9 and maximum 12 months starting from May 1, 2015 at a daily rate of $7,900.
- Agreed to extend the charter of the 2000-built, 1,645TEU containership Neapolis with Yang Ming for a period of minimum 5 and maximum 7 months starting from May 9, 2015 at a daily rate of $8,000.
- Agreed to extend the charter of the 1996-built, 1,504TEU containership Prosper with Sea Consortium for a period of minimum 3 and maximum 6 months starting from May 25, 2015 at a daily rate of $9,500.
- Charterers exercised their option to extend the charter of the 1999-built. 2,526 TEU containership Elafonisos for a period of 6 months starting from May 1, 2015 at a daily rate of $7,000.
As of today, the Company has no ships laid up.
- The investment period pursuant to the Framework Agreement with York Capital is set to expire on May 28, 2015. The Company is in discussions with its partner to extend the investment period.
Dividend Payments
- On March 27, 2015, we declared a dividend of $0.476563 per share on our Series B Preferred Stock and a dividend of $0.531250 per share on our Series C Preferred Stock, both paid on April 15, 2015, to holders of record on April 14, 2015.
- On April 1, 2015, we declared a dividend for the first quarter ended March 31, 2015, of $0.29 per share on our common stock, payable on May 6, 2015, to stockholders of record on April 21, 2015. This will be the Company's eighteenth consecutive quarterly dividend since it commenced trading on the New York Stock Exchange and the third time the Company has increased the dividend.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"During the first quarter of the year, the Company continued to deliver positive results.
Recently we placed an order, together with our partners York Capital, for one additional 11,000 TEU containership vessel, to be built by Hanjin in Philippines. The ship is expected to be delivered in December 2016 and Costamare will own a 49% stake.
Our joint venture with York has been progressing quite well and since inception we have done deals of US $1.1 billion. All investments have been performing well and we are currently in discussions with our partner regarding the extension of the investment period.
Regarding the market, there is a positive momentum; charter rates have been rising, the number of idle fleet is below 2% and activity remains high. We have no ships laid up, while the ships coming out of charter this year provide an upside based on today's market conditions."
Financial Summary
Three-month period ended
March 31,
---------------------------
(Expressed in thousands of U.S. dollars, except
share and per share data): 2014 2015
------------- -------------
Voyage revenue $114,898 $120,850
Accrued charter revenue (1) $2,646 $ 627
Voyage revenue adjusted on a cash basis (2) $117,544 $ 121,477
Adjusted EBITDA (3) $82,082 $86,035
Adjusted Net Income available to common
stockholders (3) $26,724 $28,629
Weighted Average number of shares 74,800,000 74,801,662
Adjusted Earnings per share (3) $0.36 $0.38
EBITDA (3) $72,995 $81,908
Net Income $19,833 $26,284
Net Income available to common stockholders $17,227 $23,274
Weighted Average number of shares 74,800,000 74,801,662
Earnings per share $0.23 $0.31
(1) Accrued charter revenue represents the difference between cash received
during the period and revenue recognized on a straight-line basis. In
the early years of a charter with escalating charter rates, voyage
revenue will exceed cash received during the period, and during the last
years of such charter cash received will exceed revenue recognized on a
straight line basis.
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after
adjusting for non-cash "Accrued charter revenue" recorded under charters
with escalating charter rates. However, Voyage revenue adjusted on a
cash basis is not a recognized measurement under U.S. generally accepted
accounting principles ("GAAP"). We believe that the presentation of
Voyage revenue adjusted on a cash basis is useful to investors because
it presents the charter revenue for the relevant period based on the
then current daily charter rates. The increases or decreases in daily
charter rates under our charter party agreements are described in the
notes to the "Fleet List" below.
(3) Adjusted net income available to common stockholders, 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
available to common stockholders to EBITDA and adjusted EBITDA below.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month periods ended March 31, 2015 and 2014. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders, (iii) Adjusted Earnings per share, (iv) EBITDA and (v) Adjusted EBITDA.
Reconciliation of Net Income to Adjusted Net Income available to common
stockholdersand Adjusted Earnings per Share
Three-month period ended
March 31,
----------------------------
(Expressed in thousands of U.S. dollars,
except share and per share data) 2014 2015
------------- -------------
Net Income $ 19,833 $ 26,284
Earnings allocated to Preferred Stock (2,606) (3,010)
------------- -------------
Net Income available to common stockholders 17,227 23,274
Accrued charter revenue 2,646 627
Swaps breakage cost 6,712 -
Unrealized loss from swap option agreement
held by a jointly owned company with York
included in equity loss on investments 2,503 380
General and administrative expenses - non-cash
component - 2,634
Amortization of prepaid lease rentals 410 1,228
Realized Loss on Euro/USD forward contracts
(1) - 1,030
Gain on derivative instruments (1) (2,774) (544)
------------- -------------
Adjusted Net income available to common
stockholders $ 26,724 $ 28,629
============= =============
Adjusted Earnings per Share $ 0.36 $ 0.38
============= =============
Weighted average number of shares 74,800,000 74,801,662
============= =============
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent net income before earnings allocated to preferred stock, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, realized (gain) /loss on Euro/USD forward contracts, swaps breakage costs, unrealized loss from a swap option agreement held by a jointly owned company with York, which is included in equity loss on investments, General and administrative expenses - non-cash component, amortization of prepaid lease rentals and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include gains and charges. Gains
positively impacting net income are reflected as deductions to adjusted
net income. Charges negatively impacting net income are reflected as
increases to adjusted net income.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three-month period ended
March 31,
----------------------------
(Expressed in thousands of U.S. dollars) 2014 2015
------------- -------------
Net Income $ 19,833 $ 26,284
Interest and finance costs 25,796 27,943
Interest income (150) (438)
Depreciation 25,208 25,066
Amortization of prepaid lease rentals 410 1,228
Amortization of dry-docking and special survey
costs 1,898 1,825
EBITDA 72,995 81,908
Accrued charter revenue 2,646 627
Swaps breakage cost 6,712 -
Unrealized loss from swap option agreement
held by a jointly owned company with York
included in equity loss on investments 2,503 380
General and administrative expenses - non-cash
component - 2,634
Realized Loss on Euro/USD forward contracts - 1,030
Gain on derivative instruments (2,774) (544)
------------- -------------
Adjusted EBITDA $ 82,082 $ 86,035
============= =============
EBITDA represents net income before interest and finance costs, interest income, amortization of prepaid lease rentals, depreciation and amortization of deferred dry-docking and special survey costs. Adjusted EBITDA represents net income before interest and finance costs, interest income, amortization of prepaid lease rentals, depreciation, amortization of deferred dry-docking and special survey costs, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, realized gain / (loss) on Euro / USD forward contracts, swaps breakage costs, unrealized loss from swap option agreement held by a jointly owned company with York, which is included in equity loss on investments, General and administrative expenses - non-cash component 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. 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.
(1) Items to consider for comparability include gains and charges. Gains
positively impacting net income are reflected as deductions to adjusted
EBITDA. Charges negatively impacting net income are reflected as
increases to adjusted EBITDA.
Results of Operations
Three-month period ended March 31, 2015 compared to the three-month period ended March 31, 2014
During the three-month periods ended March 31, 2015 and 2014, we had an average of 55.0 and 53.1 vessels, respectively, in our fleet. In the three-month period ended March 31, 2014, we accepted delivery of the newbuild vessels MSC Azov and MSC Ajaccio with an aggregate TEU capacity of 18,806. In the three-month periods ended March 31, 2015 and 2014, our fleet ownership days totaled 4,950 and 4,775 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.
Three-month period
ended
March 31,
--------------------
(Expressed in millions of U.S.
dollars, Percentage
except percentages) 2014 2015 Change Change
--------- ---------
Voyage revenue $ 114.9 $ 120.9 $ 6.0 5.2%
Voyage expenses (0.7) (0.6) (0.1) (14.3%)
Voyage expenses - related
parties (0.9) (0.9) - -
Vessels' operating expenses (29.4) (29.6) 0.2 0.7%
General and administrative
expenses (1.1) (1.3) 0.2 18.2%
Management fees - related
parties (4.5) (4.8) 0.3 6.7%
General and administrative
expenses - non-cash component - (2.6) 2.6 100.0%
Amortization of dry-docking and
special survey costs (1.9) (1.8) (0.1) (5.3%)
Depreciation (25.2) (25.1) (0.1) (0.4%)
Amortization of prepaid lease
rentals (0.4) (1.2) 0.8 200.0%
Foreign exchange gains/ (losses) (0.1) 0.2 0.3 300.0%
Interest income 0.2 0.4 0.2 100.0%
Interest and finance costs (25.8) (27.9) 2.1 8.1%
Swaps breakage cost (6.7) - (6.7) (100.0%)
Equity loss on investments (2.3) (0.2) (2.1) (91.3%)
Other 0.9 0.3 (0.6) (66.7%)
Gain on derivative instruments 2.8 0.5 (2.3) (82.1%)
--------- ---------
Net Income $ 19.8 $ 26.3
========= =========
Three-month period
ended
March 31,
---------------------
(Expressed in millions of U.S.
dollars, Percentage
except percentages) 2014 2015 Change Change
---------- ----------
Voyage revenue $ 114.9 $ 120.9 $ 6.0 5.2%
Accrued charter revenue 2.6 0.6 (2.0) (76.9%)
---------- ----------
Voyage revenue adjusted on a
cash basis $ 117.5 $ 121.5 $ 4.0 3.4%
========== ==========
Three-month period
ended
March 31,
---------------------
Percentage
Vessels operational data 2014 2015 Change Change
---------- ----------
Average number of vessels 53.1 55.0 1.9 3.6%
Ownership days 4,775 4,950 175 3.7%
Number of vessels under dry-
docking 2 2 -
Voyage Revenue
Voyage revenue increased by 5.2%, or $6.0 million, to $120.9 million during the three-month period ended March 31, 2015, from $114.9 million during the three-month period ended March 31, 2014. This increase was mainly due to (i) revenue earned by the three newbuild and three second hand vessels delivered to us during the nine-month period ended December 31, 2014; partly offset by (ii) revenue not earned by vessels sold for scrap during the nine-month period ended December 31, 2014, (iii) decreased charter rates in certain of our vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014, and (iv) increased off-hire days, mainly due to scheduled dry-dockings during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue"), increased by 3.4%, or $4.0 million, to $121.5 million during the three-month period ended March 31, 2015, from $117.5 million during the three-month period ended March 31, 2014. This increase was mainly due to (i) revenue earned by the three newbuild and three second hand vessels delivered to us during the nine-month period ended December 31, 2014; partly offset by (ii) revenue not earned by vessels sold for scrap during the nine-month period ended December 31, 2014, (iii) decreased charter rates in certain of our vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014, and (iv) increased off-hire days, mainly due to scheduled dry-dockings during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Voyage Expenses
Voyage expenses were $0.6 million, during the three-month period ended March 31, 2015 and $0.7 million during the three-month period ended March 31, 2014. Voyage expenses mainly include (i) off-hire expenses of our vessels, mainly related to fuel consumption and (ii) third party commissions.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.9 million during the three-month period ended March 31, 2015 and in the amount of $0.9 million during the three-month period ended March 31, 2014, 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 0.7%, or $0.2 million, to $29.6 million during the three-month period ended March 31, 2015, from $29.4 million during the three-month period ended March 31, 2014. The increase was partly attributable to the increased ownership days of our vessels during the three-month period ended March 31, 2015 compared to the three-month period ended March 31, 2014.
General and Administrative Expenses
General and administrative expenses increased by 18.2%, or $0.2 million, to $1.3 million during the three-month period ended March 31, 2015, from $1.1 million during the three-month period ended March 31, 2014. General and administrative expenses for the three-month periods ended March 31, 2015, included $0.63 million which is part of the annual fee that our manager receives.
Management Fees - related parties
Management fees paid to our managers increased by 6.7%, or $0.3 million, to $4.8 million during the three-month period ended March 31, 2015, from $4.5 million during the three-month period ended March 31, 2014. The increase was primarily attributable to (i) the inflation related upward adjustment by 4% of the management fee for each vessel (effective January 1, 2015), as provided under our group management agreement and (ii) the increased average number of vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
General and Administrative expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended March 31, 2015 amounted to $2.6 million, representing the value of the shares issued to our manager on March 31, 2015. No amounts were incurred in the prior period.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $1.8 million for the three-month period ended March 31, 2015 and $1.9 million for the three-month period ended March 31, 2014. During the three-month period ended March 31, 2015 two vessels underwent and completed their special survey. During the three-month period ended March 31, 2014 two vessels underwent and completed their special survey.
Depreciation
Depreciation expense decreased by 0.4%, or $0.1 million, to $25.1 million during the three-month period ended March 31, 2015, from $25.2 million during the three-month period ended March 31, 2014. The decrease was mainly attributable to a change in the estimated scrap value of vessels, which had a favorable effect of $1.3 million for the three-month period ended March 31, 2015, partly offset by increased depreciation expenses as a result of the increased average number of vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Foreign Exchange Gains/ (Losses)
Foreign exchange gains were $0.2 million during the three-month period ended March 31, 2015. Foreign exchange losses were $0.1 million during the three-month period ended March 31, 2014.
Interest Income
Interest income for the three-month period ended March 31, 2015 and 2014 amounted to $0.4 million and $0.2 million, respectively.
Interest and Finance Costs
Interest and finance costs increased by 8.1%, or $2.1 million, to $27.9 million during the three-month period ended March 31, 2015, from $25.8 million during the three-month period ended March 31, 2014. The increase was mainly attributable to the increased interest expense charged to the consolidated statement of income in relation with the sale and leaseback of the three newbuild vessels which were delivered to us during the year ended December 31, 2014. During the three-month period ended March 31, 2014 there was a write-off of deferred finance costs due to the refinancing of one of our bank loans.
Equity Loss on Investments
The equity loss on investments of $0.2 million for the three-month period ended March 31, 2015, represents our share of the net losses of fifteen jointly owned companies pursuant to the Framework Agreement with York. We hold a range of 25% to 49% of the capital stock of these companies. The net loss of $0.2 million was mainly attributable to an unrealized loss of $0.4 million deriving from a swap option agreement entered into by a jointly-owned company.
Gain on Derivative Instruments
The fair value of our 22 interest rate derivative instruments which were outstanding as of March 31, 2015, equates to the amount that would be paid by us or to us should those instruments be terminated. As of March 31, 2015, the fair value of these 22 interest rate derivative instruments in aggregate amounted to a liability of $73.3 million. The effective portion of the change in the fair value of the interest rate derivative instruments that qualified for hedge accounting is recorded in "Other Comprehensive Income" ("OCI") while the ineffective portion is recorded in the consolidated statements of income. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in the consolidated statement of income. For the three-month period ended March 31, 2015, a net gain of $0.7 million has been included in OCI and a net gain of $2.0 million has been included in Gain on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended March 31, 2015.
Cash Flows
Three-month periods ended March 31, 2015 and 2014
Three-month period ended
Condensed cash flows March 31,
--------------------------
(Expressed in millions of U.S. dollars) 2014 2015
------------ ------------
Net Cash Provided by Operating Activities $ 53.9 $ 54.9
Net Cash Used in Investing Activities $ (65.1) $ (13.4)
Net Cash Provided by / (Used in) Financing
Activities $ 101.5 $ (70.3)
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended March 31, 2015, increased by $1.0 million to $54.9 million, compared to $53.9 million for the three-month period ended March 31, 2014. The increase was primarily attributable to increased cash from operations of $3.9 million due to cash generated mainly from the employment of the three newbuild vessels delivered to us during the year ended December 31, 2014 and the decreased payments for interest (including swap payments) during the period of $0.3 million; partly offset by the 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 $7.6 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $13.4 million in the three-month period ended March 31, 2015, which mainly consisted of $13.0 million in advance payments for the construction of two newbuild vessels, pursuant to the Framework Agreement with York; we hold an equity interest ranging from 25% to 49% in jointly-owned companies.
Net cash used in investing activities was $65.1 million in the three-month period ended March 31, 2014, which consisted of (a) $40.6 million for capitalized costs and advance payments for the construction and delivery of three newbuild vessels and (b) $24.5 million in payments, pursuant to the Framework Agreement with York, to hold an equity interest ranging from 25% to 49% in jointly-owned companies.
Net Cash Provided By Financing Activities
Net cash used in financing activities was $70.3 million in the three-month period ended March 31, 2015, which mainly consisted of (a) $50.0 million of indebtedness that we repaid, (b) $3.3 million we repaid relating to our sale and leaseback agreements (c) $20.9 million we paid for dividends to holders of our common stock for the second quarter of 2014, and (d) $1.0 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock ( "Series B Preferred Stock") and $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock"), in both cases for the period from October 15, 2014 to January 14, 2015.
Net cash provided by financing activities was $101.5 million in the three-month period ended March 31, 2014, which mainly consisted of (a) $147.5 million of indebtedness that we repaid, (b) $171.1 million we received regarding the sale and leaseback transaction of two newbuild vessels that we delivered during the period, (c) $20.2 million we paid for dividends to holders of our common stock for the fourth quarter of 2013, (d) $1.0 million we paid for dividends to holders of our Series B Preferred Stock for the period from October 15, 2013 to January 14, 2014 and (e) $96.5 million net proceeds we received from our public offering in January 2014, of 4.0 million shares of our Series C Preferred Stock, net of underwriting discounts and expenses incurred in the offering.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of March 31, 2015, we had a total cash liquidity of $141.4 million, consisting of cash, cash equivalents and restricted cash.
Debt-free vessels
As of April 28, 2015, the following vessels were free of debt.
Unencumbered Vessels in the water(*)
(refer to fleet list for full charter details)
Year TEU
Vessel Name Built Capacity
------------------------ ---------- ----------
NAVARINO 2010 8,531
VENETIKO 2003 5,928
LAKONIA 2004 2,586
AREOPOLIS 2000 2,474
MESSINI 1997 2,458
NEAPOLIS 2000 1,645
(*) Does not include one secondhand vessel acquired and five newbuild
vessels ordered pursuant to the Framework Agreement with York, which are
also free of debt.
Capital commitments
As of April 28, 2015, we had outstanding commitments relating to our ten contracted newbuilds aggregating approximately $307.6 million payable in installments until the vessels are delivered, out of which $185.0 million will be funded through committed financing. The amounts represent our interest in the relevant jointly-owned entities with York.
Conference Call details:
On Wednesday, April 29, 2015, at 8:30 a.m. ET, Costamare's management team will hold a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-866-524-3160 (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 May 29, 2015. 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: 10064487.
Live webcast:
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com) under the "Investors" section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world's leading owners and providers of containerships for charter. The Company has 41 years of history in the international shipping industry and a fleet of 69 containerships, with a total capacity of approximately 458,000 TEU, including ten newbuild containerships on order. Fourteen of our containerships, including ten newbuilds, have been acquired pursuant to the Framework Agreement with York Capital Management by vessel-owning joint venture entities in which we hold a minority equity interest. The Company's common stock, Series B Preferred Stock and Series C Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B" and "CMRE PR C", respectively.
Forward-Looking Statements
This earnings release contains "forward-looking statements". In some cases, you can identify these statements by forward-looking words such as "believe", "intend", "anticipate", "estimate", "project", "forecast", "plan", "potential", "may", "should", "could" and "expect" and similar expressions. These statements are not historical facts but instead represent only Costamare's belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare's control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in Costamare Inc.'s Annual Report on Form 20-F (File No. 001-34934) under the caption "Risk Factors".
Fleet List
The tables below provide additional information, as of April 28, 2015, about our fleet of 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.
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Average
Daily
Charter
Current Rate
Time Daily Expiration Until
Vessel Charterer Year Capacity Charter Charter of Charter Earliest
Name Built (TEU) Term(1) Rate (1) Expiry of
(U.S. Charter
dollars) (U.S.
dollars)
(2)
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1 COSCO COSCO 2006 9,469 12 years 36,400 December 36,400
GUANGZHOU 2017
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2 COSCO COSCO 2006 9,469 12 years 36,400 January 36,400
NINGBO 2018
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3 COSCO COSCO 2006 9,469 12 years 36,400 February 36,400
YANTIAN 2018
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4 COSCO COSCO 2006 9,469 12 years 36,400 April 2018 36,400
BEIJING
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5 COSCO COSCO 2006 9,469 12 years 37,519 May 2018 37,519
HELLAS
----------------------------------------------------------------------------
6 MSC AZOV MSC 2014 9,403 10 years 43,000 November 43,000
2023
----------------------------------------------------------------------------
7 MSC MSC 2014 9,403 10 years 43,000 February 43,000
AJACCIO 2024
----------------------------------------------------------------------------
8 MSC AMALFI MSC 2014 9,403 10 years 43,000 March 2024 43,000
----------------------------------------------------------------------------
9 MSC ATHENS MSC 2013 8,827 10 years 42,000 January 42,000
2023
----------------------------------------------------------------------------
10 MSC ATHOS MSC 2013 8,827 10 years 42,000 February 42,000
2023
----------------------------------------------------------------------------
11 VALOR Evergreen 2013 8,827 7.0years 41,700 April 41,700
(i) 2020(i)
----------------------------------------------------------------------------
12 VALUE Evergreen 2013 8,827 7.0 41,700 April 41,700
years(i) 2020(i)
----------------------------------------------------------------------------
13 VALIANT Evergreen 2013 8,827 7.0 41,700 June 41,700
years(i) 2020(i)
----------------------------------------------------------------------------
14 VALENCE Evergreen 2013 8,827 7.0 41,700 July 41,700
years(i) 2020(i)
----------------------------------------------------------------------------
15 VANTAGE Evergreen 2013 8,827 7.0 41,700 September 41,700
years(i) 2020(i)
----------------------------------------------------------------------------
16 NAVARINO MSC 2010 8,531 1.0 year September
2015
----------------------------------------------------------------------------
17 MAERSK A.P. Moller- 1997 7,403 10 years 37,000 December 37,000
KAWASAKI Maersk 2017
(ii)
----------------------------------------------------------------------------
18 MAERSK A.P. Moller- 1996 7,403 10 years 37,000 December 37,000
KURE(ii) Maersk 2017
----------------------------------------------------------------------------
19 MAERSK A.P. Moller- 1997 7,403 10 years 37,000 February 37,000
KOKURA(ii) Maersk 2018
----------------------------------------------------------------------------
20 MSC MSC 2003 6,724 10 years 29,000 September 29,000
METHONI 2021
----------------------------------------------------------------------------
21 SEALAND A.P. Moller- 2000 6,648 11 years 26,100 March 2018 26,100
NEW YORK Maersk
----------------------------------------------------------------------------
22 MAERSK A.P. Moller- 2000 6,648 11 years 26,100 May 2018 26,100
KOBE Maersk
----------------------------------------------------------------------------
23 SEALAND A.P. Moller- 2000 6,648 11 years 26,100 June 2018 26,100
WASHINGTON Maersk
----------------------------------------------------------------------------
24 SEALAND A.P. Moller- 2000 6,648 11 years 26,100 August 26,100
MICHIGAN Maersk 2018
----------------------------------------------------------------------------
25 SEALAND A.P. Moller- 2000 6,648 11 years 26,100 October 26,100
ILLINOIS Maersk 2018
----------------------------------------------------------------------------
26 MAERSK A.P. Moller- 2003 6,644 11 years 38,865 November 28,611
KOLKATA Maersk (3) 2019
----------------------------------------------------------------------------
27 MAERSK A.P. Moller- 2003 6,644 11 years 38,461 February 29,100
KINGSTON Maersk (4) 2020
----------------------------------------------------------------------------
28 MAERSK A.P. Moller- 2003 6,644 11 years 38,418 April 2020 29,306
KALAMATA Maersk (5)
----------------------------------------------------------------------------
29 VENETIKO PIL 2003 5,928 2.0 12,250 May 2015 12,250
years
----------------------------------------------------------------------------
30 ENSENADA Hapag Lloyd 2001 5,576 2.0 19,000 May 2015 19,000
EXPRESS(*) years
----------------------------------------------------------------------------
31 MSC MSC 2003 5,050 5.3 28,000 November 28,000
ROMANOS years 2016
----------------------------------------------------------------------------
32 ZIM NEW ZIM 2002 4,992 13 years 13,744 September 13,744
YORK 2015(6)
----------------------------------------------------------------------------
33 ZIM ZIM 2002 4,992 13 years 13,744 September 13,744
SHANGHAI 2015(6)
----------------------------------------------------------------------------
34 ZIM ZIM 2004 4,992 10 years 13,344 September 13,344
PIRAEUS 2015(6)
----------------------------------------------------------------------------
35 OAKLAND Hapag Lloyd 2000 4,890 8.0 30,500 September 30,500
EXPRESS years 2016
----------------------------------------------------------------------------
36 HALIFAX Hapag Lloyd 2000 4,890 8.0 30,500 October 30,500
EXPRESS years 2016
----------------------------------------------------------------------------
37 SINGAPORE Hapag Lloyd 2000 4,890 8.0 30,500 July 2016 30,500
EXPRESS years
----------------------------------------------------------------------------
38 MSC MSC 1988 4,828 7.8 20,000 August 20,000
MANDRAKI years 2017
----------------------------------------------------------------------------
39 MSC MSC 1988 4,828 8.2 20,000 September 20,000
MYKONOS years 2017
----------------------------------------------------------------------------
40 MSC ULSAN MSC 2002 4,132 5.3 16,500 March 2017 16,500
years
----------------------------------------------------------------------------
41 MSC KORONI MSC 1998 3,842 9.5 13,500 September 13,500
years (7) 2018
----------------------------------------------------------------------------
42 MSC ITEA MSC 1998 3,842 1.0 7,300 June 2015 7,300
years
----------------------------------------------------------------------------
43 KARMEN Evergreen 1991 3,351 0.8 7,500 May 2015 7,500
years
----------------------------------------------------------------------------
44 MARINA Evergreen 1992 3,351 2.5 7,000 May 2015 7,000
years
----------------------------------------------------------------------------
45 MSC MSC 1986 2,633 4.8 10,000 July 2015 10,000
CHALLENGER years
----------------------------------------------------------------------------
46 LAKONIA Evergreen 2004 2,586 2.0 8,600 February 8,600
years 2017
----------------------------------------------------------------------------
47 ELAFONISOS A.P. Moller- 1999 2,526 0.9 6,250 November 6988
(*) Maersk years (8) 2015
----------------------------------------------------------------------------
48 AREOPOLIS Evergreen 2000 2,474 0.6 7,200 July 2015 7,200
years
----------------------------------------------------------------------------
49 MESSINI Evergreen 1997 2,458 3.3 7,500 February 7,896
years (9) 2016
----------------------------------------------------------------------------
50 MSC MSC 1992 2,024 8.0 7,600 July 2016 7,600
REUNION years
----------------------------------------------------------------------------
51 MSC MSC 1991 2,023 8.8 7,600 July 2016 7,600
NAMIBIA II years
----------------------------------------------------------------------------
52 MSC SIERRA MSC 1991 2,023 7.7 7,600 June 2016 7,600
II years
----------------------------------------------------------------------------
53 MSC PYLOS MSC 1991 2,020 5.0 7,250 January 7,250
years 2016
----------------------------------------------------------------------------
54 X-PRESS Sea 1998 1,645 2.0 8,225 June 2015 8,225
PADMA(*) Consortium years
----------------------------------------------------------------------------
55 NEAPOLIS Yang Ming 2000 1,645 0.9 8,000 October 8,000
years 2015
----------------------------------------------------------------------------
56 PROSPER Sea 1996 1,504 0.7 7,350 August 9,012
Consortium years (10) 2015
----------------------------------------------------------------------------
57 ZAGORA MSC 1995 1,162 3.7 6,200 May 2015 6,200
years
----------------------------------------------------------------------------
58 PETALIDI CMA CGM 1994 1,162 2.0 6,800 August 6,800
(*) years 2015
----------------------------------------------------------------------------
59 STADT CMA CGM 2001 1.078 2.7 6,400 June 2015 6,400
LUEBECK years
----------------------------------------------------------------------------
Newbuilds
------------------------------------------------------------
Expected Delivery
Vessel Name Shipyard Charterer (based on latest
shipyard
schedule)
------------------------------------------------------------
1 NCP0113(*) Hanjin Subic Bay 4th Quarter 2015
------------------------------------------------------------
2 NCP0114(*) Hanjin Subic Bay 1st Quarter 2016
------------------------------------------------------------
3 NCP0115(*) Hanjin Subic Bay 2nd Quarter 2016
------------------------------------------------------------
4 NCP0116(*) Hanjin Subic Bay 2nd Quarter 2016
------------------------------------------------------------
5 NCP0152(*) Hanjin Subic Bay 4th Quarter 2016
------------------------------------------------------------
6 S2121(*) Samsung Heavy Evergreen 2nd Quarter 2016
------------------------------------------------------------
7 S2122(*) Samsung Heavy Evergreen 2nd Quarter 2016
------------------------------------------------------------
8 S2123(*) Samsung Heavy Evergreen 3rd Quarter 2016
------------------------------------------------------------
9 S2124(*) Samsung Heavy Evergreen 3rd Quarter 2016
------------------------------------------------------------
10 S2125(*) Samsung Heavy Evergreen 3rd Quarter 2016
------------------------------------------------------------
Our newbuilds on order have an aggregate capacity in excess of 125,000 TEU.
(1) Charter terms and expiration dates are based on the earliest date
charters could expire. Amounts set out for current daily charter rate
are the amounts contained in the charter contracts.
(2) This average rate is calculated based on contracted charter rates for
the days remaining between April 28, 2015 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 changes on January 13, 2016 to $26,100 per day until
the earliest redelivery date.
(4) This charter rate changes on April 28, 2016 to $26,100 per day until
the earliest redelivery date.
(5) This charter rate changes on June 11, 2016 to $26,100 per day until the
earliest redelivery date.
(6) Zim finalized the terms of its comprehensive financial restructuring
plan with its shareholders and its creditors, including vessel and
container lenders, shipowners, shipyards, unsecured lenders and bond
holders. The amounts in the table reflect the current charter terms,
giving effect to our agreement with Zim under the restructuring plan.
Based on this agreement, we have been granted charter extensions and
have been issued equity securities representing 1.2% of Zim's equity
and approximately $8.2 million in interest bearing notes maturing in
2023. The Company will have the option to extend the charters for two
of the three vessels chartered to Zim for successive one year periods
at market rate plus $1,100 per day per vessel while the notes remain
outstanding.
(7) As from December 1, 2012 until redelivery, the charter rate is to be a
minimum of $13,500 per day plus 50% of the difference between the
market rate and the charter rate of $13,500. The market rate is to be
determined annually based on the Hamburg ConTex type 3500 TEU index
published on October 1 of each year until redelivery.
(8) This charter rate changes on May 1, 2015 to $7,000 per day until the
earliest redelivery date.
(9) This charter rate changes on May 1, 2015 to $7,900 per day until the
earliest redelivery date.
(10) This charter rate changes on May 25, 2015 to $9,500 per day until the
earliest redelivery date.
(i) Assumes exercise of owner's unilateral options to extend the charter of
these vessels for two one year periods at the same charter rate. The
charterer also has corresponding options to unilaterally extend the
charter for the same periods at the same charter rate.
(ii) The charterer has a unilateral option to extend the charter of the
vessel for two periods of 30 months each +/-90 days on the final period
performed, at a rate of $41,700 per day.
(*) Denotes vessels acquired pursuant to the Framework Agreement with York.
The Company holds an equity interest ranging between 25% and 49% in
each of the vessel-owning entities.
COSTAMARE INC.
Consolidated Statements of Income
Three-months ended
March 31,
--------------------------
(Expressed in thousands of U.S. dollars, except
share and per share amounts) 2014 2015
------------ ------------
(Unaudited)
REVENUES:
Voyage revenue $ 114,898 $ 120,850
EXPENSES:
Voyage expenses (685) (636)
Voyage expenses - related parties (862) (905)
Vessels' operating expenses (29,384) (29,551)
General and administrative expenses (1,097) (1.315)
Management fees - related parties (4,471) (4,818)
General and administrative expenses - non-cash
component - (2,634)
Amortization of dry-docking and special survey
costs (1,898) (1,825)
Depreciation (25,208) (25,066)
Amortization of prepaid lease rentals (410) (1,228)
Foreign exchange gains/ (losses) (63) 290
------------ ------------
Operating income $ 50,820 $ 53,162
------------ ------------
OTHER INCOME (EXPENSES):
Interest income $ 150 $ 438
Interest and finance costs (25,796) (27,943)
Swaps breakage cost (6,712) -
Equity loss on investments (2,278) (195)
Other 875 278
Gain on derivative instruments 2,774 544
------------ ------------
Total other income (expenses) $ (30,987) $ (26,878)
------------ ------------
Net Income $ 19,833 $ 26,284
============ ============
Earnings allocated to Preferred Stock (2,606) (3,010)
------------ ------------
Net Income available to common stockholders $ 17,227 $ 23,274
============ ============
Earnings per common share, basic and diluted $ 0.23 $ 0.31
============ ============
Weighted average number of shares, basic and
diluted 74,800,000 74,801,662
============ ============
COSTAMARE INC.
Consolidated Balance Sheets
As of As of
December 31, March 31,
------------ ------------
(Expressed in thousands of U.S. dollars) 2014 2015
------------ ------------
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 113,089 $ 84,248
Restricted cash 14,264 8,902
Accounts receivable 2,365 1,552
Inventories 11,565 10,435
Due from related parties 4,447 4,801
Insurance claims receivable 1,759 2,019
Prepaid lease rentals 4,982 4,992
Accrued charter revenue 511 522
Prepayments and other 4,993 7,038
------------ ------------
Total current assets $ 157,975 $ 124,509
FIXED ASSETS, NET:
Finance lease - Asset $ 250,547 248,678
Vessels, net 2,098,820 2,076,094
------------ ------------
Total fixed assets, net $ 2,349,367 $ 2,324,772
NON-CURRENT ASSETS:
Investment in affiliates $ 73,579 $ 86,347
Prepaid lease rentals, non-current 40,811 39,573
Deferred charges, net 28,675 28,180
Accounts receivable, non-current 1,425 1,425
Restricted cash 49,818 48,277
Accrued charter revenue 1,025 923
Other non-current assets 12,065 12,338
------------ ------------
Total assets $ 2,714,740 $ 2,666,344
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 192,951 $ 190,853
Accounts payable 6,296 6,114
Finance lease - obligation 13,508 13,772
Accrued liabilities 19,119 17,202
Unearned revenue 12,929 13,535
Fair value of derivatives 43,287 39,911
Other current liabilities 2,286 2,059
------------ ------------
Total current liabilities $ 290,376 $ 283,446
NON-CURRENT LIABILITIES
Long-term debt, net of current portion $ 1,326,990 $ 1,279,134
Finance lease - obligation, net of current
portion 233,625 230,093
Fair value of derivatives, net of current
portion 31,653 35,816
Unearned revenue, net of current portion 29,454 29,500
------------ ------------
Total non-current liabilities $ 1,621,722 $ 1,574,543
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock $ - $ -
Common stock 8 8
Additional paid-in capital 858,665 861,299
Retained earnings 103 2,433
Accumulated other comprehensive loss (56,134) (55,385)
------------ ------------
Total stockholders' equity $ 802,642 $ 808,355
------------ ------------
Total liabilities and stockholders' equity $ 2,714,740 $ 2,666,344
============ ============
Contacts: Company Contact: Gregory Zikos Chief Financial Officer Konstantinos Tsakalidis Business Development Costamare Inc. Athens, Greece Tel: (+30) 210-949-0050 Email: [email protected] Investor Relations Advisor/ Media Contact: Gus Okwu Allison+Partners New York Telephone: (+1) 646-428-0638 Email: [email protected]
Source: Costamare Inc.