Costamare Inc. (“Costamare” or the “Company”) (NYSE:CMRE) today
reported unaudited financial results for the third quarter and
nine-months ended September 30, 2017.
- Voyage revenues adjusted on a cash basis of $98.4 million and
$303.4 million for the three and nine-months ended September 30,
2017, respectively.
- Adjusted Net Income available to common stockholders of $17.2
million or $0.16 per share and $58.5 million or $0.60 per share for
the three and nine-months ended September 30, 2017,
respectively.
See “Financial Summary” and “Non-GAAP Measures” below for
additional detail
New Business Developments
A. New financing
transactions
- In August 2017, we entered into a loan agreement with a leading
European financial institution for the financing of the 2005-built
7,471 TEU containership, Maersk Kowloon. The vessel was acquired in
the previous quarter and commenced its 5-year charter to Maersk
Line. The respective loan facility will be repayable over 5
years.
B. New charter agreements
- All of our vessels are currently being employed.
- The Company has chartered in total 15 vessels since June 30,
2017. More specifically, the Company: - Agreed to
charter the 2016-built, 11,010 TEU containership Cape Akritas with
CMA-CGM, for a period of 12 months plus/minus 30 days in
charterers’ option, starting from September 15, 2017.- Agreed
to charter the 2017-built, 11,010 TEU containership Cape Kortia
with Evergreen, for a period of 11 to 13 months, starting from
October 14, 2017.- Agreed to extend the charter of the
2001-built, 1,550 TEU containership Arkadia with Evergreen, for a
period starting from August 18, 2017 and expiring at the
charterers’ option during the period from January 10, 2018 to April
18, 2018, at a daily rate of $7,800.- Agreed to charter the
2001-built, 1,078 TEU containership Luebeck with United Africa
Feeder Line for a period of 45 to 75 days, starting from October
25, 2017, at a daily rate of $6,950.- Agreed to extend the
charter of the 1997-built, 2,458 TEU containership Messini with
Evergreen for a period of 4 to 8 months, starting from September
16, 2017, at a daily rate of $8,300.- Agreed to extend the
charter of the 1998-built, 3,842 TEU containership Itea with ACL
for a period starting from September 11, 2017 and expiring at the
charterers’ option during the period from January 10, 2018 to
February 15, 2018, at a daily rate of $8,000.- Agreed to
extend the charter of the 1994-built, 1,162 TEU containership
Petalidi with CMA-CGM at a daily rate of $6,400 for a period of 15
to 50 days, starting from October 31, 2017.- Extended the
charters of the 2002-built, 4,992 TEU containerships Zim New York
and Zim Shanghai for an additional one year period expiring on
September 30, 2018 at a daily rate of $8,401 per vessel starting
from October 1, 2017.- Agreed to extend the charters of the
2000-built, 4,890 TEU containerships Oakland Express, Halifax
Express and Singapore Express with Hapag Lloyd, for a period of 13
to 16 months, starting from January 1, 2018, at a daily rate of
$8,800.- Agreed to extend the charter of the 1996-built,
1,504 TEU containership Prosper with Sea Consortium, for a period
of 3 to 6 months, starting from October 26, 2017, at a daily rate
of $7,500.- Agreed to charter the 2004-built, 4,992 TEU
containership Piraeus for a period of 70 to 130 days, starting from
November 15, 2017.- Agreed to charter the 2002-built, 4,132
TEU containership Ulsan with ZIM, at a daily rate of $7,600 for a
period of 77 days to 6 months, starting from November 9, 2017.
D. Vessel disposals
- In August and September 2017 we sold for demolition the
1988-built 4,828 TEU container vessel Mandraki and the 1988-built
4,828 TEU container vessel Mykonos and we recorded an accounting
gain of $1.5 million.
E. Dividend announcements
- On October 2, 2017, we declared a dividend for the third
quarter ended September 30, 2017, of $0.10 per share on our common
stock, payable on November 6, 2017, to stockholders of record as of
October 23, 2017.
- On October 2, 2017, we declared a dividend of $0.476563 per
share on our Series B Preferred Stock, a dividend of $0.531250 per
share on our Series C Preferred Stock and a dividend of $0.546875
per share on our Series D Preferred Stock, which were all paid on
October 16, 2017 to holders of record as of October 13, 2017.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the third quarter the Company delivered
positive results.
On the financing side, we entered into a debt
financing agreement with a leading institution for the financing of
the containership Maersk Kowloon. The vessel has a 5-year charter
to Maersk Line. Regarding our commitments, all of our new
building program is fully funded with remaining equity commitments
amounting to only $2 million, due in 2018.
Regarding chartering, we chartered in total 15
ships at substantially higher rates. We have no ships laid up.
Finally, on the dividend and the Dividend
Reinvestment Plan currently in place, members of the founding
family have decided to reinvest in full the third quarter cash
dividends. This is sixth consecutive quarter that insiders have
decided to reinvest their dividends in new shares.”
|
|
| Financial
Summary |
| |
|
|
|
|
|
|
|
|
| |
|
Nine-month period ended September
30, |
|
Three-month period ended September
30, |
| (Expressed in thousands
of U.S. dollars, except share and per share data): |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Voyage revenue |
|
$ |
358,055 |
|
|
$ |
311,815 |
|
|
$ |
118,256 |
|
|
$ |
101,274 |
|
| Accrued charter revenue
(1) |
|
$ |
(4,894 |
) |
|
$ |
(8,452 |
) |
|
$ |
(2,827 |
) |
|
$ |
(2,853 |
) |
| Voyage revenue adjusted
on a cash basis (2) |
|
$ |
353,161 |
|
|
$ |
303,363 |
|
|
$ |
115,429 |
|
|
$ |
98,421 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income
available to common stockholders (3) |
|
$ |
92,081 |
|
|
$ |
58,525 |
|
|
$ |
28,122 |
|
|
$ |
17,176 |
|
| Weighted Average number
of shares |
|
|
75,814,641 |
|
|
|
98,123,877 |
|
|
|
76,486,847 |
|
|
|
106,528,748 |
|
| Adjusted Earnings per
share (3) |
|
$ |
1.21 |
|
|
$ |
0.60 |
|
|
$ |
0.37 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
|
|
|
|
| Net Income |
|
$ |
92,710 |
|
|
$ |
70,206 |
|
|
$ |
20,672 |
|
|
$ |
24,143 |
|
| Net Income available to
common stockholders |
|
$ |
76,913 |
|
|
$ |
54,409 |
|
|
$ |
15,348 |
|
|
$ |
18,819 |
|
| Weighted Average number
of shares |
|
|
75,814,641 |
|
|
|
98,123,877 |
|
|
|
76,486,847 |
|
|
|
106,528,748 |
|
| Earnings per share |
|
$ |
1.01 |
|
|
$ |
0.55 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and Adjusted Earnings per
Share are non-GAAP measures. Refer to the reconciliation of Net
Income to Adjusted Net Income.
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 and nine-month periods ended
September 30, 2017 and 2016. 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 and (iii) Adjusted Earnings per Share.
|
|
| Reconciliation of Net Income to Adjusted Net
Income available to common stockholders and Adjusted Earnings per
Share |
|
|
|
|
|
|
|
|
|
|
| |
|
Nine-month period ended September
30, |
|
Three-month period ended September
30, |
| (Expressed in thousands
of U.S. dollars, except share and per share data) |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Income |
$ |
92,710 |
|
$ |
70,206 |
|
$ |
20,672 |
|
$ |
24,143 |
|
| Earnings allocated to
Preferred Stock |
|
(15,797 |
) |
|
(15,797 |
) |
|
(5,324 |
) |
|
(5,324 |
) |
| Net Income
available to common stockholders |
|
76,913 |
|
|
54,409 |
|
|
15,348 |
|
|
18,819 |
|
| Accrued charter
revenue |
|
(4,894 |
) |
|
(8,452 |
) |
|
(2,827 |
) |
|
(2,853 |
) |
| General and
administrative expenses – non-cash component |
|
4,114 |
|
|
3,002 |
|
|
1,368 |
|
|
924 |
|
| Amortization of prepaid
lease rentals, net |
|
4,579 |
|
|
6,375 |
|
|
2,102 |
|
|
2,055 |
|
| Realized Gain on
Euro/USD forward contracts (1) |
|
(898 |
) |
|
(682 |
) |
|
(220 |
) |
|
(501 |
) |
| (Gain) / Loss on sale /
disposals of vessels (1) |
|
4,440 |
|
|
4,856 |
|
|
4,440 |
|
|
(1,514 |
) |
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
586 |
|
|
- |
|
|
586 |
|
|
- |
|
| Swap breakage cost |
|
9,404 |
|
|
- |
|
|
9,404 |
|
|
- |
|
| (Gain) / Loss on
derivative instruments, excluding interest accrued and realized on
non-hedging derivative instruments (1) |
|
(2,163 |
) |
|
(983 |
) |
|
(2,079 |
) |
|
246 |
|
| Adjusted Net
Income available to common stockholders |
$ |
92,081 |
|
$ |
58,525 |
|
$ |
28,122 |
|
$ |
17,176 |
|
| Adjusted
Earnings per Share |
$ |
1.21 |
|
$ |
0.60 |
|
$ |
0.37 |
|
$ |
0.16 |
|
| Weighted average number
of shares |
|
75,814,641 |
|
|
98,123,877 |
|
|
76,486,847 |
|
|
106,528,748 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock, but before non-cash
"Accrued charter revenue" recorded under charters with escalating
charter rates, realized gain on Euro/USD forward contracts, (gain)
/ loss on sale / disposal of vessels, non-recurring, non-cash
write-off of loan deferred financing costs, swap breakage cost,
general and administrative expenses - non-cash component,
amortization of prepaid lease rentals, net 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.
Results of Operations
Three-month period ended September 30,
2017 compared to the three-month period ended September 30,
2016
During the three-month periods ended September
30, 2017 and 2016, we had an average of 53.5 and 53.4 vessels,
respectively, in our fleet. In the three-month period ended
September 30, 2017 we sold the container vessels Mandraki and the
Mykonos with an aggregate capacity of 9,656 TEU. In the three-month
period ended September 30, 2016, we sold the 3,351 TEU vessel
Karmen. In the three-month periods ended September 30, 2017 and
2016, our fleet ownership days totaled 4,922 and 4,912 days,
respectively. Ownership days are one of the primary drivers 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.
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
Three-month period ended September
30, |
|
|
|
Percentage |
| except
percentages) |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
118.3 |
|
$ |
101.3 |
|
$ |
(17.0 |
) |
|
(14.4 |
%) |
| Voyage expenses |
|
(0.4 |
) |
|
(0.4 |
) |
|
- |
|
|
- |
|
| Voyage expenses –
related parties |
|
(0.9 |
) |
|
(0.8 |
) |
|
(0.1 |
) |
|
(11.1 |
%) |
| Vessels’ operating
expenses |
|
(27.2 |
) |
|
(26.0 |
) |
|
(1.2 |
) |
|
(4.4 |
%) |
| General and
administrative expenses |
|
(1.4 |
) |
|
(1.5 |
) |
|
0.1 |
|
|
7.1 |
% |
| Management fees –
related parties |
|
(4.9 |
) |
|
(5.0 |
) |
|
0.1 |
|
|
2.0 |
% |
| General and
administrative expenses - non-cash component |
|
(1.4 |
) |
|
(0.9 |
) |
|
(0.5 |
) |
|
(35.7 |
%) |
| Amortization of
dry-docking and special survey costs |
|
(2.0 |
) |
|
(1.9 |
) |
|
(0.1 |
) |
|
(5.0 |
%) |
| Depreciation |
|
(25.2 |
) |
|
(24.2 |
) |
|
(1.0 |
) |
|
(4.0 |
%) |
| Amortization of prepaid
lease rentals, net |
|
(2.1 |
) |
|
(2.0 |
) |
|
(0.1 |
) |
|
(4.8 |
%) |
| Gain / (Loss) on sale /
disposal of vessels |
|
(4.4 |
) |
|
1.5 |
|
|
5.9 |
|
|
n.m. |
|
| Foreign exchange
losses |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|
(100.0 |
%) |
| Interest income |
|
0.4 |
|
|
0.8 |
|
|
0.4 |
|
|
100.0 |
% |
| Interest and finance
costs |
|
(18.4 |
) |
|
(18.0 |
) |
|
(0.4 |
) |
|
(2.2 |
%) |
| Swap breakage cost |
|
(9.4 |
) |
|
- |
|
|
(9.4 |
) |
|
(100.0 |
%) |
| Equity gain / (loss) on
investments |
|
(0.1 |
) |
|
1.6 |
|
|
1.7 |
|
|
n.m. |
|
| Other |
|
- |
|
|
(0.1 |
) |
|
0.1 |
|
|
n.m. |
|
| Loss on derivative
instruments |
|
(0.1 |
) |
|
(0.3 |
) |
|
0.2 |
|
|
200.0 |
% |
| Net
Income |
$ |
20.7 |
|
$ |
24.1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
Three-month period ended September
30, |
|
|
|
Percentage |
| except
percentages) |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
118.3 |
|
$ |
101.3 |
|
$ |
(17.0 |
) |
|
(14.4 |
%) |
| Accrued charter
revenue |
|
(2.8 |
) |
|
(2.9 |
) |
|
0.1 |
|
|
3.6 |
% |
| Voyage revenue adjusted
on a cash basis |
$ |
115.5 |
|
$ |
98.4 |
|
$ |
(17.1 |
) |
|
(14.8 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month period ended September
30, |
|
|
|
Percentage |
| |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
| Average number of
vessels |
|
53.4 |
|
53.5 |
|
0.1 |
|
0.2 |
% |
| Ownership days |
|
4,912 |
|
4,922 |
|
10 |
|
0.2 |
% |
| Number of vessels under
dry-docking |
|
- |
|
1 |
|
1 |
|
|
| |
|
|
|
|
|
|
|
|
Voyage Revenue
Voyage revenue decreased by 14.4%, or $17.0
million, to $101.3 million during the three-month period ended
September 30, 2017, from $118.3 million during the three-month
period ended September 30, 2016. The decrease is mainly
attributable to decreased charter rates for certain of our vessels
and revenue not earned by five vessels sold for demolition (one
vessel in August 2016 and four vessels during the nine-month period
ended September 30, 2017) which was partly offset by revenue earned
by three secondhand vessels acquired during the second quarter of
2017.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash "Accrued charter revenue"), decreased by 14.8%,
or $17.1 million, to $98.4 million during the three-month period
ended September 30, 2017, from $115.5 million during the
three-month period ended September 30, 2016. Accrued charter
revenue for the three-month periods ended September 30, 2017 and
2016, amounted to $2.9 million and $2.8 million, respectively.
Voyage Expenses
Voyage expenses were $0.4 million for each of
the three-month periods ended September 30, 2017 and 2016. Voyage
expenses mainly include (i) off-hire expenses of our vessels,
mostly related to fuel consumption and (ii) third party
commissions.
Voyage Expenses – related parties
Voyage expenses – related parties in the amount
of $0.8 million and $0.9 million during the three-month periods
ended September 30, 2017 and 2016, respectively, represent fees of
0.75% in the aggregate on voyage revenues charged by Costamare
Shipping Company S.A. ("Costamare Shipping") and by Costamare
Shipping Services Ltd. ("Costamare Services") pursuant to the
Framework Agreement between Costamare Shipping and us dated
November 2, 2015 (the “Framework Agreement”), the Services
Agreement between Costamare Services and our vessel-owning
subsidiaries dated November 2, 2015 (the “Services Agreement”) and
the individual ship-management agreements pertaining to each
vessel.
Vessels’ Operating Expenses
Vessels' operating expenses, which also include
the realized gain / (loss) under derivative contracts entered into
in relation to foreign currency exposure, were $26.0 million and
$27.2 million during the three-month periods ended September 30,
2017 and 2016, respectively.
General and Administrative Expenses
General and administrative expenses were $1.5
million and $1.4 million during the three-month periods ended
September 30, 2017 and 2016, respectively and both include $0.63
million which is part of the annual fee that Costamare Services
receives based on the Services Agreement.
Management Fees – related parties
Management fees paid to our managers pursuant to
the Framework Agreement were $5.0 million during the three-month
period ended September 30, 2017 and $4.9 million during the
three-month period ended September 30, 2016.
General and administrative expenses - non-cash component
General and administrative expenses - non-cash
component for the three-month period ended September 30, 2017
amounted to $0.9 million, representing the value of the shares
issued to Costamare Services on September 29, 2017, pursuant to the
Services Agreement. For the three-month period ended September 30,
2016, the general and administrative expenses - non-cash component
amounted to $1.4 million, representing the value of the shares
issued to Costamare Services on September 30, 2016 pursuant to the
Services Agreement.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special
survey costs was $1.9 million and $2.0 million during the
three-month periods ended September 30, 2017 and 2016,
respectively. During the three-month period ended September 30,
2017, one vessel underwent and completed its special survey. During
the three-month period ended September 30, 2016 no vessel underwent
any special survey.
Depreciation
Depreciation expense decreased by 4.0% or $1.0
million, to $24.2 million during the three-month period ended
September 30, 2017, from $25.2 million during the three-month
period ended September 30, 2016. The decrease was mainly
attributable to depreciation expense not charged during the
three-month period ended September 30, 2017, due to the sale of
five vessels during 2016 and the nine-month period ended September
30, 2017; partly offset by the depreciation charged during the
three-month period ended September 30, 2017, due to the acquisition
of three secondhand containerships.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net was
$2.0 million during the three-month period ended September 30,
2017. Amortization of prepaid lease rentals, net was $2.1 million
during the three-month period ended September 30, 2016.
Gain / (Loss) on sale / disposal of vessels
During the three-month period ended September
30, 2017, we recorded a net gain of $1.5 million from the sale
of two vessels, the Mykonos and the Mandraki (which was classified
as asset held for sale as at June 30, 2017). During the three-month
period ended September 30, 2016, we recorded a loss of
$4.4 million from the sale of one vessel, the Karmen.
Foreign Exchange Losses
Foreign exchange losses were nil and $0.1
million during the three-month periods ended September 30, 2017 and
2016, respectively.
Interest Income
Interest income amounted to $0.8 million and
$0.4 million for the three-month periods ended September 30, 2017
and 2016, respectively.
Interest and Finance Costs
Interest and finance costs decreased by 2.2%, or
$0.4 million, to $18.0 million during the three-month period ended
September 30, 2017, from $18.4 million during the three-month
period ended September 30, 2016. The decrease is partly
attributable to the decreased average loan balance during the
three-month period ended September 30, 2017 compared to the
three-month period ended September 30, 2016.
Swaps Breakage Cost
During the three-month period ended September
30, 2016, we terminated one interest rate derivative instrument
that qualified for hedge accounting and we paid the counterparty
breakage costs of $9.4 million.
Equity Gain / (Loss) on Investments
During the three-month period ended September
30, 2017, we recorded an equity gain on investments of $1.6 million
representing our share of the net gain of 18 jointly owned
companies pursuant to the Framework Deed dated May 15, 2013, as
amended and restated on May 18, 2015 (the “Framework Deed”),
between the Company and a wholly-owned subsidiary on the one hand,
and York Capital Management Global Advisors LLC and an affiliated
fund (collectively, together with the funds it manages or advises,
“York”) on the other hand. During the three-month period
ended September 30, 2016, we recorded an equity loss on investments
of $0.1 million. The increase is mainly attributable to the income
generated by certain newbuild vessels that were delivered from the
shipyard during 2016 and commenced their charters; partly off-set
by losses related to certain newbuild vessels that were delivered
in 2016 and 2017 and commenced their commercial operations in the
second quarter of 2017. We hold a range of 25% to 49% of the
capital stock of the companies jointly owned pursuant to the
Framework Deed.
Loss on Derivative Instruments
The fair value of our 17 interest rate
derivative instruments which were outstanding as of September 30,
2017 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of September 30, 2017, the fair
value of these 17 interest rate derivative instruments in aggregate
amounted to a liability of $4.1 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 September 30,
2017, a net gain of $3.4 million has been included in OCI.
Cash FlowsThree-month periods ended
September 30, 2017 and 2016
| Condensed cash
flows |
|
Three-month period ended September
30, |
| (Expressed in millions
of U.S. dollars) |
|
2016 |
|
2017 |
| Net Cash Provided by
Operating Activities |
|
$ |
49.8 |
|
|
$ |
48.0 |
|
| Net Cash Provided by /
(Used in) Investing Activities |
|
$ |
(16.9 |
) |
|
$ |
16.0 |
|
| Net Cash Used in
Financing Activities |
|
$ |
(25.9 |
) |
|
$ |
(66.5 |
) |
| |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended September 30, 2017, decreased by
$1.8 million to $48.0 million, compared to $49.8 million for the
three-month period ended September 30, 2016. The decrease is mainly
attributable to the decreased cash from operations of $17.0
million; partly off-set by decreased payments for interest
(including swap payments) during the period of $6.8 million and the
favorable 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.
Net Cash Provided by / (Used in) Investing
Activities
Net cash provided by investing activities was
$16.0 million in the three-month period ended September 30, 2017.
This amount includes $17.0 million we received from the sale of two
vessels and of $1.0 million in payments for working capital
injected into certain entities pursuant to the Framework Deed.
Net cash used in investing activities was $16.9
million in the three-month period ended September 30, 2016, which
mainly consisted of $20.4 million (net of $0.3 million we received
as dividend distributions) in advance payments for the construction
of five newbuild vessels, working capital injection in certain
entities pursuant to the Framework Deed and $3.6 million in
proceeds we received from the sale of one vessel.
Net Cash Used in Financing Activities
Net cash used in financing activities was $66.5
million in the three-month period ended September 30, 2017, which
mainly consisted of (a) $75.2 million payments relating to our
credit facilities and to our sale and leaseback transactions, (b)
$17.6 million that we drew down from one of our credit facilities,
(c) $4.8 million we paid for dividends to holders of our
common stock for the second quarter of 2017 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"),
$2.1 million we paid for dividends to holders of our 8.500% Series
C Cumulative Redeemable Perpetual Preferred Stock ("Series C
Preferred Stock") and $2.2 million we paid for dividends to holders
of our 8.75% Series D Cumulative Redeemable Perpetual Preferred
Stock (“Series D Preferred Stock"), for the period from April 15,
2017 to July 14, 2017.
Net cash used in financing activities was $25.9
million in the three-month period ended September 30, 2016, which
mainly consisted of (a) $49.5 million of indebtedness that we
repaid, (b) $7.2 million we repaid relating to our sale and
leaseback agreements, (c) $110.8 million we paid for the prepayment
of two of our credit facilities, (d) $151.8 million we received in
connection with the sale and leaseback transaction concluded for
two of our vessels, (e) $7.5 million we paid for dividends to
holders of our common stock for the second quarter of 2016 and (g)
$1.0 million we paid for dividends to holders of our Series B
Preferred Stock, $2.1 million we paid for dividends to holders of
our Series C Preferred Stock and $2.2 million we paid for dividends
to holders of our Series D Preferred Stock, for the period from
April 15, 2016 to July 14, 2016.
Nine-month period ended September 30,
2017 compared to the nine-month period ended September 30,
2016
During the nine-month periods ended September
30, 2017 and 2016, we had an average of 52.7 and 53.8 vessels,
respectively, in our fleet. In the nine-month period ended
September 30, 2017, we accepted delivery of the secondhand
containerships Leonidio, Kyparissia and Maersk Kowloon with an
aggregate capacity of 17,385 TEU and we sold the container vessels
Romanos, Marina, Mandraki and Mykonos with an aggregate
capacity of 18,057 TEU. In the nine-month period ended September
30, 2016, we sold the 3,351 TEU vessel Karmen. In the nine-month
periods ended September 30, 2017 and 2016, our fleet ownership days
totaled 14,378 and 14,740 days, respectively. Ownership days are
one of the primary drivers 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.
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
Nine-month period ended September
30, |
|
|
|
Percentage |
| except
percentages) |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
358.1 |
|
$ |
311.8 |
|
$ |
(46.3 |
) |
|
(12.9 |
%) |
| Voyage expenses |
|
(1.5 |
) |
|
(2.0 |
) |
|
0.5 |
|
|
33.3 |
% |
| Voyage expenses –
related parties |
|
(2.7 |
) |
|
(2.3 |
) |
|
(0.4 |
) |
|
(14.8 |
%) |
| Vessels’ operating
expenses |
|
(79.6 |
) |
|
(76.9 |
) |
|
(2.7 |
) |
|
(3.4 |
%) |
| General and
administrative expenses |
|
(4.3 |
) |
|
(4.3 |
) |
|
- |
|
|
- |
|
| Management fees –
related parties |
|
(14.4 |
) |
|
(14.4 |
) |
|
- |
|
|
- |
|
| General and
administrative expenses - non-cash component |
|
(4.1 |
) |
|
(3.0 |
) |
|
(1.1 |
) |
|
(26.8 |
%) |
| Amortization of
dry-docking and special survey costs |
|
(5.9 |
) |
|
(5.8 |
) |
|
(0.1 |
) |
|
(1.7 |
%) |
| Depreciation |
|
(75.8 |
) |
|
(72.7 |
) |
|
(3.1 |
) |
|
(4.1 |
%) |
| Amortization of prepaid
lease rentals, net |
|
(4.6 |
) |
|
(6.4 |
) |
|
1.8 |
|
|
39.1 |
% |
| Loss on sale / disposal
of vessels |
|
(4.4 |
) |
|
(4.8 |
) |
|
0.4 |
|
|
9.1 |
% |
| Foreign exchange
losses |
|
(0.3 |
) |
|
- |
|
|
(0.3 |
) |
|
(100.0 |
%) |
| Interest income |
|
1.1 |
|
|
1.9 |
|
|
0.8 |
|
|
72.7 |
% |
| Interest and finance
costs |
|
(55.1 |
) |
|
(53.3 |
) |
|
(1.8 |
) |
|
(3.3 |
)% |
| Swaps breakage
cost |
|
(9.4 |
) |
|
- |
|
|
(9.4 |
) |
|
(100.0 |
%) |
| Equity gain / (loss) on
investments |
|
(0.5 |
) |
|
2.5 |
|
|
3.0 |
|
|
n.m. |
|
| Other |
|
0.5 |
|
|
0.6 |
|
|
0.1 |
|
|
20.0 |
% |
| Loss on derivative
instruments |
|
(4.4 |
) |
|
(0.7 |
) |
|
(3.7 |
) |
|
(84.1 |
%) |
| Net
Income |
$ |
92.7 |
|
$ |
70.2 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
Nine-month period ended September
30, |
|
|
|
Percentage |
| except
percentages) |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
358.1 |
|
$ |
311.8 |
|
$ |
(46.3 |
) |
|
(12.9 |
%) |
| Accrued charter
revenue |
|
(4.9 |
) |
|
(8.5 |
) |
|
3.6 |
|
|
73.5 |
% |
| Voyage revenue adjusted
on a cash basis |
$ |
353.2 |
|
$ |
303.3 |
|
$ |
(49.9 |
) |
|
(14.1 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Nine-month period ended September
30, |
|
|
|
Percentage |
| |
|
2016 |
|
2017 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
| Average number of
vessels |
|
53.8 |
|
52.7 |
|
(1.1 |
) |
|
(2.0 |
%) |
| Ownership days |
|
14,740 |
|
14,378 |
|
(362 |
) |
|
(2.5 |
%) |
| Number of vessels under
dry-docking |
|
6 |
|
4 |
|
(2 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
Voyage Revenue
Voyage revenue decreased by 12.9%, or $46.3
million, to $311.8 million during the nine-month period ended
September 30, 2017, from $358.1 million during the nine-month
period ended September 30, 2016. The decrease is mainly
attributable to (i) decreased charter rates for certain of our
vessels, (ii) revenue not earned by five vessels sold for
demolition (one vessel in August 2016 and four vessels during
the nine-month period ended September 30, 2017) and (iii) revenue
not earned due to decreased calendar days by one day during the
nine-month period ended September 30, 2017 (273 calendar days)
compared to the nine-month period ended September 30, 2016 (274
calendar days); partly offset by revenue earned by three secondhand
vessels acquired during the second quarter of 2017 and decreased
off-hire days of our fleet during the nine-month period ended
September 30, 2017 compared to the nine-month period ended
September 30, 2016.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash "Accrued charter revenue"), decreased by 14.1%,
or $49.9 million, to $303.3 million during the nine-month period
ended September 30, 2017, from $353.2 million during the nine-month
period ended September 30, 2016. Accrued charter revenue for the
nine-month periods ended September 30, 2017 and 2016, amounted to
$8.5 million and $4.9 million respectively.
Voyage Expenses
Voyage expenses were $2.0 million and $1.5
million, during the nine-month periods ended September 30, 2017 and
2016, respectively. 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 $2.3 million and $2.7 million during the nine-month periods
ended September 30, 2017 and 2016, respectively, represent fees of
0.75% in the aggregate on voyage revenues charged by Costamare
Shipping and by Costamare Services pursuant to the Framework
Agreement, the Services Agreement and the individual
ship-management agreements pertaining to each vessel.
Vessels’ Operating Expenses
Vessels' operating expenses, which also include
the realized gain / (loss) under derivative contracts entered into
in relation to foreign currency exposure, decreased by 3.4%, or
$2.7 million, to $76.9 million during the nine-month period ended
September 30, 2017, from $79.6 million during the nine-month period
ended September 30, 2016.
General and Administrative Expenses
General and administrative expenses were $4.3
million in each of the nine-month periods ended September 30, 2017
and 2016 and both include $1.9 million which is part of the annual
fee that Costamare Services receives based on the Services
Agreement.
Management Fees – related parties
Management fees paid to our managers pursuant to
the Framework Agreement were $14.4 million in each of the
nine-month periods ended September 30, 2016 and 2017.
General and administrative expenses - non-cash component
General and administrative expenses - non-cash
component for the nine-month period ended September 30, 2017
amounted to $3.0 million, representing the value of the shares
issued to Costamare Services on March 30, 2017, June 30, 2017 and
September 29, 2017, pursuant to the Services Agreement. For the
nine-month period ended September 30, 2016, the general and
administrative expenses - non-cash component amounted to $4.1
million, representing the value of the shares issued to Costamare
Services on March 30, 2016, June 30, 2016 and September 30, 2016
pursuant to the Services Agreement.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special
survey costs was $5.8 million and $5.9 million during the
nine-month periods ended September 30, 2017 and 2016, respectively.
During the nine-month period ended September 30, 2017, four vessels
underwent and completed their special survey. During the nine-month
period ended September 30, 2016 six vessels underwent and completed
their special survey.
Depreciation
Depreciation expense decreased by 4.1% or $3.1
million, to $72.7 million during the nine-month period ended
September 30, 2017, from $75.8 million during the nine-month period
ended September 30, 2016. The decrease was mainly attributable (i)
to decreased calendar days by one day during the nine-month period
ended September 30, 2017 (273 calendar days) compared to the
nine-month period ended September 30, 2016 (274 calendar days) and
(ii) to depreciation expense not charged during the nine-month
period ended September 30, 2017, due to the sale of five vessels
during the period spanning from the third quarter of 2016 to the
nine-month period ended September 30, 2017; partly offset by the
depreciation charged on the three secondhand containerships
acquired during the second quarter of 2017.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net was
$6.4 million during the nine-month period ended September 30, 2017.
Amortization of prepaid lease rentals, net was $4.6 million during
the nine-month period ended September 30, 2016.
Loss on sale / disposal of vessels
During the nine-month period ended September 30,
2017, we recorded an aggregate net loss of $4.2 million from the
sale of the vessels Marina, Mandraki and the Mykonos and a loss of
$0.6 million from the sale of the vessel Romanos which was
classified as Asset held for sale as at December 31, 2016. During
the nine-month period ended September 30, 2016, we recorded a loss
of $4.4 million from the sale of the vessel Karmen.
Foreign Exchange Losses
Foreign exchange losses were nil and $0.3
million during the nine-month periods ended September 30, 2017 and
2016, respectively.
Interest Income
Interest income amounted to $1.9 million and
$1.1 million for the nine-month periods ended September 30, 2017
and 2016, respectively.
Interest and Finance Costs
Interest and finance costs decreased by 3.3%, or
$1.8 million, to $53.3 million during the nine-month period ended
September 30, 2017, from $55.1 million during the nine-month period
ended September 30, 2016. The decrease is partly attributable to
the decreased average loan balance during the nine-month period
ended September 30, 2017 compared to the nine-month period ended
September 30, 2016.
Swaps Breakage Cost
During the nine-month period ended September 30,
2016, we terminated one interest rate derivative instrument that
qualified for hedge accounting and we paid the counterparty
breakage costs of $9.4 million.
Equity Gain / (Loss) on Investments
During the nine-month period ended September 30,
2017 we recorded an equity gain on investments of $2.5 million
representing our share of the net gain of 18 jointly owned
companies pursuant to the Framework Deed. During the nine-month
period ended September 30, 2016, we recorded an equity loss on
investments of $0.5 million. The increase is mainly attributable to
the income generated by certain newbuild vessels that were
delivered from the shipyard during 2016 and immediately commenced
their charters. We hold a range of 25% to 49% of the capital stock
of the companies jointly owned pursuant to the Framework Deed.
Loss on Derivative Instruments
The fair value of our 17 interest rate
derivative instruments which were outstanding as of September 30,
2017 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of September 30, 2017, the fair
value of these 17 interest rate derivative instruments in aggregate
amounted to a liability of $4.1 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 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 nine-month period ended September 30, 2017, a net gain of $8.5
million has been included in OCI and a net loss of $0.9 million has
been included in 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, 2017.
Cash FlowsNine-month periods ended
September 30, 2017 and 2016
| Condensed cash
flows |
|
Nine-month period ended September
30, |
| (Expressed in millions
of U.S. dollars) |
|
2016 |
|
2017 |
| Net Cash Provided by
Operating Activities |
|
$ |
169.5 |
|
|
$ |
147.1 |
|
| Net Cash Used in
Investing Activities |
|
$ |
(31.1 |
) |
|
$ |
(35.4 |
) |
| Net Cash Used in
Financing Activities |
|
$ |
(131.8 |
) |
|
$ |
(84.2 |
) |
| |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the nine-month period ended September 30, 2017, decreased by
$22.4 million to $147.1 million, compared to $169.5 million for the
nine-month period ended September 30, 2016. The decrease is mainly
attributable to the decreased cash from operations of $49.9
million; partly off-set by decreased payments for interest
(including swap payments) during the period of $8.6 million, the
favorable 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 $5.0 million
and the decreased special survey costs of $3.1 million during the
nine-month period ended September 30, 2017 compared to the
nine-month period ended September 30, 2016.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $35.4
million in the nine-month period ended September 30, 2017, which
consisted of payments for the acquisition of three secondhand
vessels and payments for working capital injected into
certain entities pursuant to the Framework Deed (net of dividend
distributions we received); partly off-set by proceeds we received
from the sale of four vessels.
Net cash used in investing activities was $31.1
million in the nine-month period ended September 30, 2016, which
mainly consisted of (i) $32.1 million (net of $3.0 million we
received as dividend distributions) in advance payments for the
construction of seven newbuild vessels, the acquisition of a
secondhand vessel and working capital injection in certain entities
pursuant to the Framework Deed, (ii) $1.6 million in payments for
upgrades to one of our vessels and (iii) $3.6 million proceeds we
received from the sale of one vessel.
Net Cash Used in Financing Activities
Net cash used in financing activities was $84.2
million in the nine-month period ended September 30, 2017, which
mainly consisted of (a) $91.7 million we received from our
follow-on offering in May 2017, net of underwriting discounts and
expenses incurred in the offering, (b) $150.8 million net payments
relating to our credit facilities and to our sale and leaseback
transactions, (c) $12.0 million we paid for dividends to holders of
our common stock for the fourth quarter of 2016, the first quarter
of 2017 and the second quarter of 2017 and (d) $2.9 million we paid
for dividends to holders of our Series B Preferred Stock, $6.4
million we paid for dividends to holders of our Series C Preferred
Stock and $6.6 million we paid for dividends to holders of our
Series D Preferred Stock, for the periods from October 15, 2016 to
January 14, 2017, January 15, 2017 to April 14, 2017 and April 15,
2017 to July 14, 2017.
Net cash used in financing activities was $131.8
million in the nine-month period ended September 30, 2016, which
mainly consisted of (a) $142.1 million of indebtedness that we
repaid, (b) $14.4 million we repaid relating to our sale and
leaseback agreements, (c) $39.0 million that we drew down from one
of our credit facilities, (d) $110.8 million we paid for the
prepayment of two of our credit facilities, (e) $151.8 million we
received in connection with the sale and leaseback transaction
concluded for two of our vessels, (f) $51.3 million we paid for
dividends to holders of our common stock for the fourth quarter of
2015 and the first and the second quarter of 2016 and (g) $2.9
million we paid for dividends to holders of our Series B Preferred
Stock, $6.4 million we paid for dividends to holders of our Series
C Preferred Stock and $6.6 million we paid for dividends to holders
of our Series D Preferred Stock, in each case for each of the
periods from October 15, 2015 to January 14, 2016, January 15, 2016
to April 14, 2016 and April 15, 2016 to July 14, 2016.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of September 30, 2017, we had a total cash
liquidity of $233.7 million, consisting of cash, cash equivalents
and restricted cash.
Debt-free vessels
As of October 24, 2017, the following vessels were free of
debt.
| |
| Unencumbered Vessels |
| (Refer to fleet list for full details) |
| |
|
|
|
|
|
|
Vessel Name |
|
|
Year Built |
|
TEU Capacity |
| ELAFONISSOS
(*) |
|
1999 |
|
|
2,526 |
|
| MONEMVASIA
(*) |
|
1998 |
|
|
2,472 |
|
| ARKADIA
(*) |
|
2001 |
|
|
1,550 |
|
(*) Vessels acquired pursuant to the Framework Deed with
York.
Capital commitments
As of October 24, 2017, we had outstanding
equity commitments relating to two contracted newbuilds aggregating
approximately $2.1 million payable until the vessels are delivered
in 2018. The amount represents our interest in the relevant
jointly-owned entities under the Framework Deed.
Conference Call details:
On Wednesday, October 25, 2017 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:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US). Please quote "Costamare". A
replay of the conference call will be available until November 2,
2017. 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: 10112768.
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
43 years of history in the international shipping industry and a
fleet of 70 containerships, with a total capacity of approximately
463,000 TEU, including two newbuild containerships to be delivered.
Eighteen of our containerships, including two newbuilds on order,
have been acquired pursuant to the Framework Deed 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, Series C Preferred Stock and Series D Preferred
Stock trade on the New York Stock Exchange under the symbols
“CMRE”, “CMRE PR B”, “CMRE PR C” and “CMRE PR D”, 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”.
Company Contacts:
Gregory Zikos - Chief Financial Officer Konstantinos Tsakalidis
- Business Development
Costamare Inc., Monaco Tel: (+377) 93 25 09 40Email:
ir@costamare.com
Fleet ListThe tables below
provide additional information, as of October 24, 2017, about our
fleet of containerships, including our newbuilds on order, the
vessels acquired pursuant to the Framework Deed and those vessels
subject to sale and leaseback agreements. Each vessel is a cellular
containership, meaning it is a dedicated container vessel.
| |
|
|
|
|
|
|
|
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter Rate
(U.S. dollars) |
Expiration of Charter(1) |
|
1 |
TRITON(i)(ii) |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
|
2 |
TITAN(i)(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
|
3 |
TALOS(i)(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
|
4 |
TAURUS(i)(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
5 |
THESEUS(i)(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
6 |
CAPE AKRITAS(i) |
CMA CGM |
2016 |
11,010 |
(**) |
August 2018 |
|
7 |
CAPE TAINARO(i) |
(*) |
2017 |
11,010 |
(***) |
(*) |
|
8 |
CAPE KORTIA(i) |
Evergreen |
2017 |
11,010 |
(**) |
September 2018 |
|
9 |
CAPE SOUNIO(i) |
(*) |
2017 |
11,010 |
(***) |
(*) |
|
10 |
CAPE ARTEMISIO(i) |
(*) |
2017 |
11,010 |
(***) |
(*) |
|
11 |
COSCO GUANGZHOU |
COSCO |
2006 |
9,469 |
36,400 |
December 2017 |
|
12 |
COSCO NINGBO |
COSCO |
2006 |
9,469 |
36,400 |
January 2018 |
|
13 |
COSCO YANTIAN |
COSCO |
2006 |
9,469 |
36,400 |
February 2018 |
|
14 |
COSCO BEIJING |
COSCO |
2006 |
9,469 |
36,400 |
April 2018 |
|
15 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
37,519 |
May 2018 |
|
16 |
MSC AZOV(ii) |
MSC |
2014 |
9,403 |
43,000 |
December 2023 |
|
17 |
MSC AJACCIO(ii) |
MSC |
2014 |
9,403 |
43,000 |
February 2024 |
|
18 |
MSC AMALFI(ii) |
MSC |
2014 |
9,403 |
43,000 |
March 2024 |
|
19 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
42,000 |
January 2023 |
|
20 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
42,000 |
February 2023 |
|
21 |
VALOR |
Evergreen |
2013 |
8,827 |
41,700 |
April 2020(3) |
|
22 |
VALUE |
Evergreen |
2013 |
8,827 |
41,700 |
April 2020(3) |
|
23 |
VALIANT |
Evergreen |
2013 |
8,827 |
41,700 |
June 2020(3) |
|
24 |
VALENCE |
Evergreen |
2013 |
8,827 |
41,700 |
July 2020(3) |
|
25 |
VANTAGE |
Evergreen |
2013 |
8,827 |
41,700 |
September 2020(3) |
|
26 |
NAVARINO |
PIL |
2010 |
8,531 |
9,000 |
November 2017 |
|
27 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
|
28 |
MAERSK KAWASAKI |
Maersk |
1997 |
7,403 |
14,000 |
November 2017(4) |
|
29 |
MAERSK KURE |
Maersk |
1996 |
7,403 |
14,000 |
December 2017(4) |
|
30 |
MAERSK KOKURA |
Maersk |
1997 |
7,403 |
14,000 |
December 2017(4) |
|
31 |
MSC METHONI |
MSC |
2003 |
6,724 |
29,000 |
September 2021 |
|
32 |
SEALAND NEW YORK |
Maersk |
2000 |
6,648 |
26,100 |
March 2018 |
|
33 |
MAERSK KOBE |
Maersk |
2000 |
6,648 |
26,100 |
May 2018 |
|
34 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
26,100 |
June 2018 |
|
35 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
26,100 |
August 2018 |
|
36 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
26,100 |
October 2018 |
|
37 |
MSC KOLKATA |
Maersk |
2003 |
6,644 |
26,100 |
November 2019 |
|
38 |
MSC KINGSTON |
Maersk |
2003 |
6,644 |
26,100 |
February 2020 |
|
39 |
MSC KALAMATA |
Maersk |
2003 |
6,644 |
26,100 |
April 2020 |
|
40 |
VENETIKO |
Hapag Lloyd |
2003 |
5,928 |
6,600 |
November 2017 |
|
41 |
ENSENADA (i) |
PIL |
2001 |
5,576 |
6,950 |
November 2017 |
|
42 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
8,401 |
September 2018(5) |
|
43 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
8,401 |
September 2018(5) |
|
44 |
PIRAEUS |
(*) |
2004 |
4,992 |
(*) |
January 2018 |
|
45 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200(6) |
December 2024 |
|
46 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200(7) |
November 2024 |
|
47 |
OAKLAND EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800(8) |
February 2019 |
|
48 |
HALIFAX EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800(8) |
February 2019 |
|
49 |
SINGAPORE EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800(8) |
February 2019 |
|
50 |
ULSAN |
ZIM |
2002 |
4,132 |
7,600(9) |
January 2018 |
|
51 |
MSC KORONI |
MSC |
1998 |
3,842 |
13,500 |
September 2018 |
|
52 |
ITEA |
ACL |
1998 |
3,842 |
8,000 |
January 2018 |
|
53 |
LAKONIA |
Evergreen |
2004 |
2,586 |
5,800 |
November 2017 |
|
54 |
ELAFONISOS(i) |
MSC |
1999 |
2,526 |
6,200 |
February 2018 |
|
55 |
AREOPOLIS |
Evergreen |
2000 |
2,474 |
8,300 |
November 2017 |
|
56 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
|
57 |
MESSINI |
Evergreen |
1997 |
2,458 |
8,300 |
January 2018 |
|
58 |
MSC REUNION |
MSC |
1992 |
2,024 |
6,800 |
July 2018 |
|
59 |
MSC NAMIBIA II |
MSC |
1991 |
2,023 |
6,800 |
July 2018 |
|
60 |
MSC SIERRA II |
MSC |
1991 |
2,023 |
6,800 |
June 2018 |
|
61 |
MSC PYLOS |
MSC |
1991 |
2,020 |
6,000 |
January 2018 |
|
62 |
PADMA(i) |
Evergreen |
1998 |
1,645 |
6,800 |
December 2017 |
|
63 |
NEAPOLIS |
Evergreen |
2000 |
1,645 |
6,900 |
November 2017 |
|
64 |
ARKADIA(i) |
Evergreen |
2001 |
1,550 |
7,800 |
January 2018 |
|
65 |
PROSPER |
Sea Consortium |
1996 |
1,504 |
7,500(10) |
January 2018 |
|
66 |
ZAGORA |
MSC |
1995 |
1,162 |
6,500 |
May 2018 |
|
67 |
PETALIDI(i) |
CMA CGM |
1994 |
1,162 |
6,400 |
November 2017 |
|
68 |
LUEBECK |
United Africa Feeder Line |
2001 |
1,078 |
6,950(11) |
December 2017 |
| |
|
|
|
|
|
|
Newbuilds
| |
|
|
|
|
|
|
|
Vessel Name |
Shipyard |
Capacity (TEU) |
Charterer |
Expected Delivery(2) |
|
1 |
YZJ1206(i) (ii) |
Jiangsu New Yangzi |
3,800 |
Hamburg Süd |
Q1 2018 |
|
2 |
YZJ1207 (i) (ii) |
Jiangsu New Yangzi |
3,800 |
Hamburg Süd |
Q2 2018 |
| |
|
|
|
|
|
(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) Based on latest shipyard production schedule, subject
to change.(3) 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(4) Based on an agreement with the charterers, the
vessels will be redelivered to the Company earlier than the
original redelivery date, which was in December 2017 for Maersk
Kure and Maersk Kawasaki and February 2018 for Maersk Kokura.
Charterers had options to employ each of the vessels for an
additional period of up to six months, commencing on May 7, 2017,
June 6, 2017 and June 18, 2017 for Maersk Kawasaki, Maersk Kokura
and Maersk Kure, respectively, which they have exercised. From the
aforementioned dates the daily hire rate was set at $10,500 per day
per vessel for the first two months and $14,000 per day per vessel
thereafter. The expiration dates shown above, are the new earliest
redelivery dates.(5) The amounts in the table reflect the current
charter terms, giving effect to our agreement with Zim under its
2014 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. In May 2017 the Company
exercised its option to extend the charters of Zim New York and Zim
Shanghai for a one year period at market rate plus $1,100 per day
per vessel while the notes remain outstanding. The rate for this
third optional year has been determined at $8,401 per day.(6) This
charter rate will start on December 7, 2017. From delivery of the
vessel until December 7, 2017, the charter rate will be $6,000 per
day.(7) This charter rate will start on November 24, 2017. From
delivery of the vessel until November 24, 2017, the charter rate
will be $6,000 per day.(8) This charter rate will start on January
1, 2018. Until then charter rate will be $5,500 per day.(9) This
charter rate will start on November 9, 2017. Vessel has just
completed its scheduled Drydock.(10) This charter rate will start
on October 26, 2017. Until then charter rate will be $6,750 per
day.(11) This charter rate will start on October 25, 2017. Until
then charter rate will be $7,000 per day.
(i) Denotes vessels acquired pursuant to the
Framework Deed. The Company holds an equity interest ranging
between 25% and 49% in each of the vessel-owning entities.(ii)
Denotes vessels subject to a sale and leaseback transaction
(*) Denotes charterers identity and/or current
daily charter rates and/or charter expiration dates which are
treated as confidential.(**) Vessel’s daily charter rate is in the
mid-twenty thousands of dollars.(***) Denotes newbuild vessels
chartered for periods of up to 13 months on average and at an
average rate of about $18,000 per day.
|
|
| COSTAMARE INC. |
| Consolidated Statements of
Income |
| |
|
|
|
|
| |
|
Nine-months ended September 30, |
|
Three-months
ended September
30, |
| (Expressed in thousands
of U.S. dollars, except share and per share amounts) |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
358,055 |
|
$ |
311,815 |
|
$ |
118,256 |
|
$ |
101,274 |
|
| |
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(1,456 |
) |
|
(2,025 |
) |
|
(416 |
) |
|
(452 |
) |
| Voyage expenses –
related parties |
|
(2,686 |
) |
|
(2,339 |
) |
|
(888 |
) |
|
(760 |
) |
| Vessels' operating
expenses |
|
(79,648 |
) |
|
(76,875 |
) |
|
(27,189 |
) |
|
(26,028 |
) |
| General and
administrative expenses |
|
(4,311 |
) |
|
(4,321 |
) |
|
(1,443 |
) |
|
(1,517 |
) |
| Management fees -
related parties |
|
(14,441 |
) |
|
(14,355 |
) |
|
(4,871 |
) |
|
(4,968 |
) |
| General and
administrative expenses – non-cash component |
|
(4,114 |
) |
|
(3,002 |
) |
|
(1,368 |
) |
|
(924 |
) |
| Amortization of
dry-docking and special survey costs |
|
(5,937 |
) |
|
(5,780 |
) |
|
(1,997 |
) |
|
(1,869 |
) |
| Depreciation |
|
(75,786 |
) |
|
(72,677 |
) |
|
(25,217 |
) |
|
(24,162 |
) |
| Amortization of prepaid
lease rentals, net |
|
(4,579 |
) |
|
(6,375 |
) |
|
(2,102 |
) |
|
(2,055 |
) |
| Gain / (Loss) on sale /
disposal of vessels |
|
(4,440 |
) |
|
(4,856 |
) |
|
(4,440 |
) |
|
1,514 |
|
| Foreign exchange gains
/ (losses) |
|
(334 |
) |
|
32 |
|
|
(105 |
) |
|
1 |
|
| Operating
income |
$ |
160,323 |
|
$ |
119,242 |
|
$ |
48,220 |
|
$ |
40,054 |
|
| |
|
|
|
|
|
|
|
|
| OTHER
INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
| Interest income |
$ |
1,140 |
|
$ |
1,869 |
|
$ |
403 |
|
$ |
753 |
|
| Interest and finance
costs |
|
(55,090 |
) |
|
(53,300 |
) |
|
(18,414 |
) |
|
(17,962 |
) |
| Swap breakage cost |
|
(9,404 |
) |
|
- |
|
|
(9,404 |
) |
|
- |
|
| Equity gain / (loss) on
investments |
|
(460 |
) |
|
2,532 |
|
|
(55 |
) |
|
1,645 |
|
| Other |
|
551 |
|
|
545 |
|
|
13 |
|
|
(61 |
) |
| Loss on derivative
instruments |
|
(4,350 |
) |
|
(682 |
) |
|
(91 |
) |
|
(286 |
) |
| Total
other income /
(expenses) |
$ |
(67,613 |
) |
$ |
(49,036 |
) |
$ |
(27,548 |
) |
$ |
(15,911 |
) |
| Net
Income |
$ |
92,710 |
|
$ |
70,206 |
|
$ |
20,672 |
|
$ |
24,143 |
|
| Earnings allocated to
Preferred Stock |
|
(15,797 |
) |
|
(15,797 |
) |
|
(5,324 |
) |
|
(5,324 |
) |
| Net Income
available to common stockholders |
$ |
76,913 |
|
$ |
54,409 |
|
$ |
15,348 |
|
$ |
18,819 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Earnings per common
share, basic and diluted |
$ |
1.01 |
|
$ |
0.55 |
|
$ |
0.20 |
|
$ |
0.18 |
|
| Weighted average number
of shares, basic and diluted |
|
75,814,641 |
|
|
98,123,877 |
|
|
76,486,847 |
|
|
106,528,748 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| COSTAMARE INC. |
| Consolidated Balance Sheets |
| |
|
|
|
|
| |
|
As of December 31, |
|
As of September
30, |
| (Expressed in thousands
of U.S. dollars) |
|
2016 |
|
2017 |
|
ASSETS |
|
|
|
(Unaudited) |
| CURRENT
ASSETS: |
|
|
|
|
| Cash and cash
equivalents |
$ |
164,898 |
|
$ |
192,465 |
|
| Restricted cash |
|
6,882 |
|
|
6,076 |
|
| Accounts
receivable |
|
971 |
|
|
3,896 |
|
| Inventories |
|
11,415 |
|
|
9,824 |
|
| Due from related
parties |
|
3,447 |
|
|
5,622 |
|
| Fair value of
derivatives |
|
- |
|
|
101 |
|
| Insurance claims
receivable |
|
2,886 |
|
|
1,719 |
|
| Prepaid lease
rentals |
|
8,752 |
|
|
8,752 |
|
| Asset held for
sale |
|
6,256 |
|
|
- |
|
| Accrued charter
revenue |
|
408 |
|
|
288 |
|
| Prepayments and
other |
|
3,914 |
|
|
4,147 |
|
| Total current
assets |
$ |
209,829 |
|
$ |
232,890 |
|
| FIXED ASSETS,
NET: |
|
|
|
|
| Capital leased
assets |
$ |
384,872 |
|
$ |
419,134 |
|
| Vessels, net |
|
1,688,285 |
|
|
1,614,898 |
|
| Total fixed
assets, net |
$ |
2,073,157 |
|
$ |
2,034,032 |
|
| NON-CURRENT
ASSETS: |
|
|
|
|
| Equity method
investments |
$ |
153,126 |
|
$ |
163,414 |
|
| Prepaid lease rentals,
non-current |
|
51,670 |
|
|
45,124 |
|
| Deferred charges,
net |
|
20,367 |
|
|
17,381 |
|
| Accounts receivable,
non-current |
|
1,575 |
|
|
1,725 |
|
| Restricted cash |
|
38,783 |
|
|
35,138 |
|
| Fair value of
derivatives, non-current |
|
762 |
|
|
2,873 |
|
| Accrued charter
revenue |
|
185 |
|
|
- |
|
| Other non-current
assets |
|
8,970 |
|
|
9,307 |
|
| Total
assets |
$ |
2,558,424 |
|
$ |
2,541,884 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
| Current portion of
long-term debt |
$ |
198,277 |
|
$ |
167,874 |
|
| Accounts payable |
|
3,848 |
|
|
4,590 |
|
| Due to related
parties |
|
191 |
|
|
193 |
|
| Capital lease
obligations |
|
29,059 |
|
|
32,533 |
|
| Accrued
liabilities |
|
11,109 |
|
|
11,088 |
|
| Unearned revenue |
|
19,668 |
|
|
18,060 |
|
| Fair value of
derivatives |
|
16,161 |
|
|
6,995 |
|
| Other current
liabilities |
|
1,673 |
|
|
1,696 |
|
| Total current
liabilities |
$ |
279,986 |
|
$ |
243,029 |
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
| Long-term debt, net of
current portion |
$ |
856,330 |
|
$ |
718,372 |
|
| Capital lease
obligations, net of current portion |
|
331,196 |
|
|
347,683 |
|
| Unearned revenue, net
of current portion |
|
16,488 |
|
|
12,856 |
|
| Total
non-current liabilities |
$ |
1,204,014 |
|
$ |
1,078,911 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
| Preferred stock |
$ |
- |
|
$ |
- |
|
| Common stock |
|
9 |
|
|
11 |
|
| Additional paid-in
capital |
|
1,057,423 |
|
|
1,168,849 |
|
| Retained earnings |
|
31,416 |
|
|
57,023 |
|
| Accumulated other
comprehensive loss |
|
(14,424 |
) |
|
(5,939 |
) |
| Total
stockholders’ equity |
$ |
1,074,424 |
|
$ |
1,219,944 |
|
| Total
liabilities and stockholders’ equity |
$ |
2,558,424 |
|
$ |
2,541,884 |
|
| |
|
|
|
|
|
|
Costamare (NYSE:CMRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Costamare (NYSE:CMRE)
Historical Stock Chart
From Apr 2023 to Apr 2024
