Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the fourth quarter (“Q4
2020”) and year ended December 31, 2020.
I. PROFITABILITY
- Q4 2020 Adjusted Net Income available to common stockholders(1)
of $32.7 million.
- Q4 2020 Adjusted Earnings per Share(1) of $0.27.
- Full year 2020 Adjusted Net Income available to common
stockholders(1) of $123.7 million.
- Full year 2020 Adjusted Earnings per Share(1) of $1.02.
II. MARKET DEVELOPMENTS
- 20 new vessel charters since last quarter including the
chartering of four 11,000 TEU capacity containerships for a period
of ten years. New fixtures include among others:
- Cape Akritas, Cape Tainaro, Cape Kortia and Cape Sounio, four
2016/2017-built, 11,000 TEU sister vessels chartered for a period
of approximately 10 years at a daily rate of $33,000.
- Cosco Hellas, Yantian, Beijing, three 2006-built, 9,469 TEU
sister vessels chartered for a period of approximately three years
at a daily rate of $39,600.
- Navarino, one 2010-built, 8,531 TEU containership chartered for
a period of approximately four years at a daily rate of
$31,000.
- Kure, one 1996-built, 7,403, TEU containership chartered for a
period of approximately two years at a daily rate of $31,000.
III. SALE AND PURCHASE ACTIVITY
- Acquisition of three secondhand containerships. More
specifically:
- Two 2004-built, 6,492 TEU sister vessels expected to be
delivered in Q1 2021. Upon delivery, each vessel will commence a
charter with a leading liner company for a period of 22 to 25
months.
- Delivery of the 2011-built, 4,178 TEU containership, Neokastro
whose purchase agreement was announced in the previous
quarter.
- Sale of the 2000-built, 4,890 TEU containership, Halifax
Express. The sale of the vessel is expected to be completed in
February 2021.
IV. CAPITAL STRUCTURE
- Liquidity of $209.8 million as of the end of Q4 2020 (including
our share of cash amounting to $17.9 million held in companies
co-owned with York Capital Management Global Advisors LLC and an
affiliated fund (collectively, together with the funds it manages
or advises, “York”)).
- No meaningful debt maturities until 2024.
- New financing agreements since last quarter for an aggregate
amount of $40.6 million. More specifically:
- $20.0 million loan facility agreement with a leading U.S.
financial institution, in order to refinance the existing
indebtedness of the 2010-built, 8,531 TEU containership Navarino,
originally maturing in 2021.
- $8.1 million loan facility agreement with a European financial
institution, in order to partially refinance the existing
indebtedness of the 1996-built, 7,403 TEU containership Kure,
originally maturing in 2020.
- $12.5 million loan facility agreement with a leading US
financial institution, in order to finance the acquisition of the
2011-built, 4,178 TEU containership Neokastro.
- Dividend of $0.10 per share on its common stock and dividends
on all four classes of its preferred stock.
(1) Adjusted Net Income available to common
stockholders and respective per share figures are non-GAAP measures
and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.
NEW BUSINESS DEVELOPMENTS
A. New charter agreements
- The Company has chartered in total 20 vessels over the quarter.
More specifically, the Company agreed to:I. Vessels above
5,500 TEU capacity (Post – Panamax)- Charter the
2016-built, 11,010 TEU containership, Cape Akritas and the
2017-built, 11,010 TEU vessels Cape Kortia, Cape Sounio and Cape
Tainaro with MSC, for a period of approximately 10 years, at a
daily rate of $33,000. The charters will commence between March
2021 and October 2021, upon redelivery of the vessels from their
current charterer (ZIM).- Extend the charter of the 2006-built,
9,469 TEU sister vessels, Cosco Hellas, Yantian and Beijing, with
COSCO for a period of 34 to 36 months at charterers’ option,
starting from April 1, 2021 for the first two vessels and from May
1, 2021 for the third one. The daily rate for the extension period
is $39,600.- Extend the charter of the 2010-built, 8,531 TEU
containership Navarino with MSC, for a period starting from April
15, 2021 and expiring at charterers’ option, during the period from
January 1, 2025 to April 30, 2025, at a daily rate of $31,000.-
Extend the charter of the 1996-built, 7,403 TEU containership Kure
with COSCO, for a period starting from March 23, 2021 and expiring
at charterers’ option, during the period from March 1, 2023 to July
1, 2023, at a daily rate of $31,000.- Extend the charter of the
1996-built, 8,044 TEU containership Maersk Kleven with Maersk, for
a period of 26 to 30 months at charterers’ option, starting from
April 9, 2021. The daily rate for this period is a base rate of
$17,000, adjusted pursuant to the terms of a 50:50 profit/loss
sharing mechanism based on market conditions with a minimum charter
rate of $12,000 and a maximum charter rate of $25,000.- Extend the
charter of the 1996-built, 8,044 TEU containership Maersk Kotka
with Maersk, for a period of 26 to 30 months at charterers’ option,
starting from April 25, 2021. The daily rate for this period is a
base rate of $17,000, adjusted pursuant to the terms of a 50:50
profit/loss sharing mechanism based on market conditions with a
minimum charter rate of $12,000 and a maximum charter rate of
$25,000.II. Vessels below 5,500 TEU capacity-
Charter the 2011-built, 4,178 TEU containership Neokastro for a
period of approximately 12 to 14 months at charterers’ option,
starting from December 26, 2020, at an undisclosed daily rate.-
Extend the charter of the 2000-built, 4,890 TEU containership
Halifax Express with Hapag Lloyd, for a period starting from
December 31, 2020 and expiring at charterers’ option during the
period from January 1, 2021 to February 5, 2021, at a daily rate of
$26,500. - Extend the charter of the 2009-built, 4,258 TEU
containership Vela with OOCL, for a period of 23 to 26 months at
charterers’ option, starting from February 13, 2021, at a daily
rate of $22,700. - Extend the charter of the 2010-built, 4,258 TEU
containership Vulpecula with OOCL, for a period of 23 to 26 months
at charterers’ option, starting from March 28, 2021, at a daily
rate of $22,700. - Extend the charter of the 2004-built, 2,586 TEU
containership Lakonia with COSCO, for a period of 12 to 14 months
at charterers’ option, at a daily rate of $17,300, starting from
February 24, 2021. - Extend the charter of the 2000-built, 2,474
TEU containership Areopolis with COSCO, for a period of 12 to 14
months at charterers’ option, at a daily rate of $17,300, starting
from March 3, 2021.- Extend the charter of the 2001-built, 1,550
TEU containership Arkadia with Evergreen, for a period of 5 to 7
months at charterers’ option, at a daily rate of $8,650, starting
from November 28, 2020. - Extend the charter of the 2008-built,
1,300 TEU containership Trader, for a period starting from February
27, 2021 and expiring at charterers’ option, during the period from
November 1, 2021 to December 15, 2021, at an undisclosed daily
rate. - Extend the charter of the 2001-built, 1,078 TEU
containership Luebeck with MSC, for a period of 12 to 14 months at
charterers’ option, starting from February 19, 2021 at a daily rate
of $7,750.
B. Fleet Renewal
- Vessel Acquisitions- In December 2020, we
acquired the 2011-built, 4,178 TEU container vessel Neokastro.- In
December 2020, we agreed to acquire two 2004-built, 6,492 TEU
container vessels. Both vessels are expected to be delivered in Q1
2021 and upon delivery will commence a charter with a leading liner
company for a period of 22 to 25 months, at an undisclosed
rate.
- Vessel Disposal- In January 2021, we agreed to
sell the 2000-built, 4,890 TEU capacity containership Halifax
Express. Vessel’s sale is expected to be completed in February
2021.
C. New Financing Agreements
- In November 2020,
we signed a loan facility agreement with a leading U.S. financial
institution for an amount of $20.0 million, in order to refinance
the existing indebtedness of the 2010-built, 8,531 TEU capacity
containership Navarino, originally maturing in 2021 (balloon
payment of $17.3 million). The new refinancing facility will be
repayable over five years.
- In December 2020,
we signed a loan facility agreement with a European financial
institution for an amount of $8.1 million, in order to partially
refinance the existing indebtedness of the 1996-built, 7,403 TEU
capacity containership Kure, maturing in 2020. The new refinancing
facility will be repayable over two years.
- In January 2021, we
signed a loan facility agreement with a leading U.S. financial
institution for an amount of up to $12.5 million, in order to
finance the acquisition of the 2011-built, 4,178 TEU containership
Neokastro. The facility will be repayable over five years.
D. Dividend announcements
- On January 4, 2021,
we declared a dividend for the quarter ended December 31, 2020, of
$0.10 per share on our common stock, payable on February 5, 2021,
to stockholders of record of common stock as of January 20,
2021.
- On January 4, 2021,
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, a dividend of $0.546875 per share on our Series D
Preferred Stock and a dividend of $0.554688 per share on our Series
E Preferred Stock, which were all paid on January 15, 2021 to
holders of record as of January 14, 2021.
Mr. Gregory Zikos, Chief Financial Officer of Costamare
Inc., commented:
“During the fourth quarter, the Company continued its
profitability.
On the back of a rising market, we chartered in total 20
secondhand vessels during the quarter for periods of up to 10
years, substantially enhancing both our contracted revenues and
charter coverage.
The new charters contribute north of $440 million in incremental
revenues and have a TEU-weighted average duration of about five
years.
On the market, the idle containership fleet continued to shrink
to levels of about 1%. Charter rates have been on the rise
supported by a healthy demand and a chronic shortage of
vessels.
We have 10 ships coming off charter over the next six months
which positions us favorably, should current market dynamics
persist.
With liquidity of above $200 million, a streamlined debt
repayment schedule and minimal capex commitments, we are well
positioned for a healthy expansion in a volatile market
environment.”
Financial Summary
|
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| |
|
Year ended December 31, |
|
|
Three-month period ended December
31, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data): |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage revenue |
|
$ |
478,109 |
|
$ |
460,319 |
|
$ |
124,468 |
|
$ |
119,143 |
| Accrued charter revenue
(1) |
|
$ |
3,893 |
|
$ |
21,250 |
|
$ |
4,008 |
|
$ |
5,308 |
| Amortization of Time-charter
assumed |
|
$ |
191 |
|
$ |
192 |
|
$ |
48 |
|
$ |
48 |
| Voyage revenue adjusted on a
cash basis (2) |
|
$ |
482,193 |
|
$ |
481,761 |
|
$ |
128,524 |
|
$ |
124,499 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income available
to common stockholders (3) |
|
$ |
105,082 |
|
$ |
123,671 |
|
$ |
38,382 |
|
$ |
32,666 |
| Weighted Average number of
shares |
|
|
115,747,452 |
|
|
120,696,130 |
|
$ |
118,724,718 |
|
|
121,817,769 |
| Adjusted Earnings per share
(3) |
|
$ |
0.91 |
|
$ |
1.02 |
|
$ |
0.32 |
|
$ |
0.27 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income |
|
$ |
98,999 |
|
$ |
8,877 |
|
$ |
35,887 |
|
$ |
27,075 |
| Net Income / (Loss) available
to common stockholders |
|
$ |
67,730 |
|
$ |
(21,586 |
) |
$ |
28,070 |
|
$ |
19,308 |
| Weighted Average number of
shares |
|
|
115,747,452 |
|
|
120,696,130 |
|
|
118,724,718 |
|
|
121,817,769 |
| Earnings / (Losses) per
share |
|
$ |
0.59 |
|
$ |
(0.18 |
) |
$ |
0.24 |
|
$ |
0.16 |
(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-month periods and years ended
December 31, 2020 and 2019. 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.
| |
| Exhibit
I Reconciliation of Net Income to Adjusted Net
Income available to common stockholders and Adjusted Earnings per
Share |
| |
| |
|
Year ended December 31, |
|
Three-month period endedDecember
31, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net Income /
(Loss) |
$ |
98,999 |
|
$ |
8,877 |
|
$ |
35,887 |
|
$ |
27,075 |
|
| Earnings allocated to
Preferred Stock |
|
(31,269 |
) |
|
(31,082 |
) |
|
(7,817 |
) |
|
(7,767 |
) |
| Gain on retirement of
Preferred Stock |
|
- |
|
|
619 |
|
|
- |
|
|
- |
|
| Net Income / (Loss)
available to common stockholders |
|
67,730 |
|
|
(21,586 |
) |
|
28,070 |
|
|
19,308 |
|
| Accrued charter revenue |
|
3,893 |
|
|
21,250 |
|
|
4,008 |
|
|
5,308 |
|
| General and administrative
expenses - non-cash component |
|
3,879 |
|
|
3,655 |
|
|
1,426 |
|
|
1,239 |
|
| Amortization of Time charter
assumed |
|
191 |
|
|
192 |
|
|
48 |
|
|
48 |
|
| Realized (Gain) / loss on
Euro/USD forward contracts (1) |
|
553 |
|
|
(488 |
) |
|
186 |
|
|
- |
|
| Vessels’ impairment loss |
|
3,042 |
|
|
31,577 |
|
|
- |
|
|
- |
|
| (Gain) Loss on sale /
disposals of vessels |
|
19,589 |
|
|
79,120 |
|
|
689 |
|
|
(499 |
) |
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
1,253 |
|
|
521 |
|
|
126 |
|
|
43 |
|
| Swaps’ breakage costs |
|
16 |
|
|
6 |
|
|
- |
|
|
- |
|
| Loss on sale / disposal of
vessel by a jointly owned company with York included in equity gain
on investments |
|
38 |
|
|
- |
|
|
- |
|
|
- |
|
| Loss on vessels held for
sale |
|
2,495 |
|
|
7,665 |
|
|
2,495 |
|
|
7,665 |
|
| Non-recurring, voyage
expenses, tank cleaning costs in order to comply with the global
sulphur cap of 0.5% m/m in anticipation of the entry into force on
January 1, 2020 of the relevant MARPOL Annex VI regulations |
|
1,524 |
|
|
- |
|
|
1,524 |
|
|
- |
|
| Non-recurring, voyage expenses
tank cleaning costs in order to comply with the global sulphur cap
of 0.5% m/m in anticipation of the entry into force on January 1,
2020 of the relevant MARPOL Annex VI regulations incurred by
jointly owned companies with York |
|
92 |
|
|
- |
|
|
92 |
|
|
- |
|
| Non-recurring, non-cash
write-off of loan deferred financing costs by jointly owned
companies with York |
|
136 |
|
|
- |
|
|
136 |
|
|
- |
|
| (Gain) / loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
651 |
|
|
1,759 |
|
|
(418 |
) |
|
(446 |
) |
| Adjusted Net Income
available to common stockholders |
$ |
105,082 |
|
$ |
123,671 |
|
$ |
38,382 |
|
$ |
32,666 |
|
| Adjusted Earnings per
Share |
$ |
0.91 |
|
$ |
1.02 |
|
$ |
0.32 |
|
$ |
0.27 |
|
| Weighted average number of
shares |
|
115,747,452 |
|
|
120,696,130 |
|
|
118,724,718 |
|
|
121,817,769 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share represent Net Income / (loss) after
earnings allocated to preferred stock and gain on retirement of
preferred stock, but before non-cash “Accrued charter revenue”
recorded under charters with escalating charter rates, realized
(gain)/loss on Euro/USD forward contracts, vessels’ impairment
loss, (gain) loss on sale / disposal of vessels, loss on vessels
held for sale, loss on sale / disposal of vessel by a jointly owned
company with York included in equity gain on investments,
non-recurring, non-cash write-off of loan deferred financing costs,
non-recurring, non-cash write-off of loan deferred financing costs
by jointly owned companies with York, general and administrative
expenses - non-cash component, non-recurring, voyage expenses, tank
cleaning costs in order to comply with the global sulphur cap of
0.5% m/m in anticipation of the entry into force on January 1, 2020
of the relevant MARPOL Annex VI regulations, non-recurring, voyage
expenses tank cleaning costs in order to comply with the global
sulphur cap of 0.5% m/m in anticipation of the entry into force on
January 1, 2020 of the relevant MARPOL Annex VI regulations
incurred by jointly owned companies with York, swaps’ breakage
costs, amortization of Time charter assumed 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 available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Results of Operations
Three-month period ended December 31,
2020 compared to the three-month period ended December 31,
2019
During the three-month periods ended December
31, 2020 and 2019, we had an average of 60.3 and 59.2 vessels,
respectively, in our fleet. In the three-month period ended
December 31, 2020, we accepted delivery of the secondhand vessel
Neokastro with a TEU capacity of 4,178 and we sold the vessel
Singapore Express with a TEU capacity of 4,890. In the three-month
period ended December 31, 2019, we accepted delivery of the
secondhand containerships Vulpecula, Volans, and Vela with an
aggregate TEU capacity of 12,774 and we sold Sierra II, Reunion and
Namibia II with an aggregate TEU capacity of 6,070. In the
three-month periods ended December 31, 2020 and 2019, our fleet
ownership days totaled 5,552 and 5,447 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.
|
|
|
Three-month period ended December
31 |
|
|
|
|
|
|
(Expressed in millions of U.S. dollars,except percentages) |
|
2019 |
|
|
|
2020 |
|
|
Change |
|
PercentageChange |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
124.5 |
|
|
$ |
119.1 |
|
$ |
(5.4) |
|
(4.3%) |
|
| Voyage expenses |
|
(2.1) |
|
|
|
(1.0) |
|
|
(1.1) |
|
(52.4%) |
|
| Voyage expenses – related
parties |
|
(1.7) |
|
|
|
(1.8) |
|
|
0.1 |
|
5.9% |
|
| Vessels’ operating
expenses |
|
(28.8) |
|
|
|
(32.0) |
|
|
3.2 |
|
11.1% |
|
| General and administrative
expenses |
|
(1.4) |
|
|
|
(2.1) |
|
|
0.7 |
|
50.0% |
|
| Management fees – related
parties |
|
(5.2) |
|
|
|
(5.6) |
|
|
0.4 |
|
7.7% |
|
| General and administrative
expenses - non-cash component |
|
(1.4) |
|
|
|
(1.2) |
|
|
(0.2) |
|
(14.3%) |
|
| Amortization of dry-docking
and special survey costs |
|
(2.2) |
|
|
|
(2.3) |
|
|
0.1 |
|
4.5% |
|
| Depreciation |
|
(28.4) |
|
|
|
(27.1) |
|
|
(1.3) |
|
(4.6%) |
|
| Gain (Loss) on sale /
disposals of vessels |
|
(0.7) |
|
|
|
0.5 |
|
|
1.2 |
|
n.m. |
|
| Loss on vessels held for
sale |
|
(2.5) |
|
|
|
(7.7) |
|
|
5.2 |
|
n.m. |
|
| Foreign exchange losses |
|
- |
|
|
|
(0.1) |
|
|
0.1 |
|
n.m. |
|
| Interest income |
|
0.8 |
|
|
|
0.4 |
|
|
(0.4) |
|
(50.0%) |
|
| Interest and finance
costs |
|
(19.7) |
|
|
|
(17.2) |
|
|
(2.5) |
|
(12.7%) |
|
| Income from equity method
investments |
|
4.0 |
|
|
|
4.0 |
|
|
- |
|
- |
|
| Other |
|
0.3 |
|
|
|
0.7 |
|
|
0.4 |
|
n.m. |
|
| Gain on derivative
instruments |
|
0.4 |
|
|
|
0.5 |
|
|
0.1 |
|
25% |
|
| Net
Income |
$ |
35.9 |
|
|
$ |
27.1 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month period ended December
31, |
|
|
|
|
|
|
| |
|
2019 |
|
|
|
2020 |
|
|
Change |
|
PercentageChange |
|
| Voyage revenue |
$ |
124.5 |
|
|
$ |
119.1 |
|
$ |
(5.4) |
|
(4.3%) |
|
| Accrued charter revenue |
|
4.0 |
|
|
|
5.3 |
|
|
1.3 |
|
32.5% |
|
| Amortization of time charter
assumed |
|
- |
|
|
|
- |
|
|
- |
|
- |
|
| Voyage revenue adjusted on a
cash basis (1) |
$ |
128.5 |
|
|
$ |
124.4 |
|
$ |
(4.1) |
|
(3.2%) |
|
| Vessels’ operational
data |
|
Three-month period ended December 31, |
|
|
|
|
| |
|
2019 |
|
2020 |
|
Change |
|
PercentageChange |
| |
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
59.2 |
|
60.3 |
|
1.1 |
|
1.9 |
% |
| Ownership days |
|
5,447 |
|
5,552 |
|
105 |
|
1.9 |
% |
| Number of vessels under
dry-docking |
|
- |
|
2 |
|
2 |
|
|
(1) Voyage revenue adjusted on a cash basis is not a recognized
measurement under U.S. generally accepted accounting principles
(“GAAP”). Refer to “Financial Summary” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue decreased by 4.3%, or $5.4
million, to $119.1 million during the three-month period ended
December 31, 2020, from $124.5 million during the three-month
period ended December 31, 2019. The decrease is mainly attributable
to revenue not earned by three vessels sold during the fourth
quarter of 2019, one vessel sold during the first quarter of 2020,
three vessels sold during the third quarter of 2020 and one vessel
sold during the fourth quarter of 2020 and to decreased charter
rates for certain of our vessels during the fourth quarter of 2020
compared to the fourth quarter of 2019; partly offset by revenue
earned by three vessels acquired during the fourth quarter of 2019,
one vessel acquired during the first quarter of 2020, four vessels
acquired during the third quarter of 2020 and one vessel acquired
during the fourth quarter of 2020 and to the decreased idle days of
our fleet during the fourth quarter of 2020 compared to the fourth
quarter of 2019.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), decreased by 3.2%,
or $4.1 million, to $124.4 million during the three-month period
ended December 31, 2020, from $128.5 million during the three-month
period ended December 31, 2019. Accrued charter revenue for the
three-month periods ended December 31, 2020 and 2019 was a positive
amount of $5.3 million and $4.0 million respectively.
Voyage Expenses
Voyage expenses were $1.0 million and $2.1
million for the three-month periods ended December 31, 2020 and
2019, respectively. Voyage expenses mainly include (i) off-hire
expenses of our vessels, primarily related to fuel consumption and
(ii) third party commissions. Voyage expenses for the three-month
period ended December 31, 2019 included a cost of $1.5 million
relating to our vessels’ tank cleaning in order to comply with the
global sulphur cap of 0.5% m/m in anticipation of the entry into
force on January 1, 2020 of the relevant MARPOL Annex VI
regulations.
Voyage Expenses – related parties
Voyage expenses – related parties were $1.8
million and $1.7 million for the three-month periods ended December
31, 2020 and 2019, respectively. Voyage expenses – related parties
represent (i) fees of 1.25% in the aggregate on voyage revenues
charged by a related manager and a service provider and (ii)
charter brokerage fees payable to two related charter brokerage
companies for an amount of approximately $0.3 million and $0.1
million, in the aggregate, for the three-month periods ended
December 31, 2020 and 2019, respectively.
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 $32.0 million and
$28.8 million during the three-month periods ended December 31,
2020 and 2019, respectively. Daily vessels’ operating expenses were
$5,774 and $5,283 for the three-month periods ended December 31,
2020 and 2019, respectively. Daily operating expenses are
calculated as vessels’ operating expenses for the period over the
ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $2.1
million and $1.4 million during the three-month periods ended
December 31, 2020 and 2019, respectively, and both include $0.63
million paid to a related manager.
Management Fees – related parties
Management fees paid to our related managers
were $5.6 million and $5.2 million during the three-month periods
ended December 31, 2020 and 2019, respectively.
General and administrative expenses - non-cash component
General and administrative expenses - non-cash
component for the three-month period ended December 31, 2020
amounted to $1.2 million, representing the value of the shares
issued to a related manager on December 30, 2020. General and
administrative expenses – non-cash component for the three-month
period ended December 31, 2019 amounted to $1.4 million,
representing the value of the shares issued to a related manager on
December 30, 2019.
Amortization of dry-docking and special survey
Amortization of deferred dry-docking and special
survey costs was $2.3 million and $2.2 million during the
three-month periods ended December 31, 2020 and 2019, respectively.
During the three-month period ended December 31, 2020, two vessels
underwent and completed their special survey. During the
three-month period ended December 31, 2019, no vessel underwent any
special survey.
Depreciation
Depreciation expense for the three-month period
ended December 31, 2020 and 2019 was $27.1 million and $28.4
million, respectively.
Gain /(Loss) on sale / disposal of vessels
During the three-month period ended December 31,
2020, we recorded a gain of $0.5 million from the sale of the
vessel Singapore Express, which was classified as asset held for
sale as at June 30, 2020 and September 30, 2020. During the
three-month period ended December 31, 2019, we sold the vessels
Sierra II, Reunion and Namibia II and we recorded a loss of $0.7
million, in aggregate. As at September 30, 2019, the vessels
Reunion and Sierra II were classified as assets held for sale.
Loss on vessels held for sale
During the three-month period ended December 31,
2020, we recorded a loss on vessel held for sale of
$7.7 million, representing the expected loss from the sale of
vessel Halifax Express during the next twelve-month period. During
the three-month period ended December 31, 2019, we recorded a loss
on vessels held for sale of $2.5 million, representing the
expected loss from the sale of vessels Neapolis and Zagora during
the next twelve-month period.
Interest Income
Interest income amounted to $0.4 million and
$0.8 million for the three-month periods ended December 31, 2020
and 2019, respectively.
Interest and Finance Costs
Interest and finance costs were $17.2 million
and $19.7 million during the three-month periods ended December 31,
2020 and 2019, respectively. The decrease is mainly attributable to
the decreased financing cost during the three-month period ended
December 31, 2020 compared to the three-month period ended December
31, 2019.
Income from Equity Method Investments
During the three-month period ended December 31,
2020, we recorded an income from equity method investments of $4.0
million representing our share of the income in jointly owned
companies pursuant to the Framework Deed dated May 15, 2013, as
amended and restated (the “Framework Deed”), with York. As of
December 31, 2020, 13 companies are jointly-owned with York (of
which, 10 companies currently own vessels). During the three-month
period ended December 31, 2019, we recorded an income from equity
method investments of $4.0 million also relating to investments
under the Framework Deed.
Gain/(Loss) on Derivative Instruments
The fair value of our seven interest rate
derivative instruments which were outstanding as of December 31,
2020 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of December 31, 2020, the fair
value of these seven interest rate derivative instruments in
aggregate amounted to a liability of $7.1 million. The change in
the fair value of the interest rate derivative instruments that
qualified for hedge accounting is recorded in “Other Comprehensive
Income” (“OCI”) and reclassified into earnings in the same period
or periods during which the hedged transaction affects earnings and
is presented in the same income statement line item as the earnings
effect of the hedged item while the change in the fair value of the
interest rate derivatives representing hedge components excluded
from the assessment of effectiveness are recognized currently in
earnings and are presented in Gain/(Loss) on Derivative
Instruments. The change in the fair value of the interest rate
derivative instruments that did not qualify for hedge accounting is
recorded in Gain/(Loss) on Derivative Instruments. For the
three-month period ended December 31, 2020, a gain of $0.9 million
has been included in OCI and a loss of $0.1 million has been
included in Gain/(Loss) on derivative instruments in the
consolidated statement of income, resulting from the fair market
value change of the interest rate derivative instruments during the
three-month period ended December 31, 2020.
Cash Flows
Three-month periods ended December 31, 2020 and
2019
| Condensed cash
flows |
|
Three-month period ended December 31, |
|
(Expressed in millions of U.S. dollars) |
|
|
2019 |
|
|
|
2020 |
|
| Net Cash Provided by Operating
Activities |
|
$ |
76.8 |
|
|
$ |
68.4 |
|
| Net Cash Used in Investing
Activities |
|
$ |
(17.8 |
) |
|
$ |
(14.7 |
) |
| Net Cash Used in Financing
Activities |
|
$ |
(67.3 |
) |
|
$ |
(49.2 |
) |
| |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended December 31, 2020, decreased by
$8.4 million to $68.4 million, from $76.8 million for the
three-month period ended December 31, 2019. The decrease is mainly
attributable to decreased cash from operations of $4.0 million,
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 $6.5 million
and increased special survey costs of $2.9 million during the
three-month period ended December 31, 2020 compared to the
three-month period ended December 31, 2019; partly off-set by
decreased payments for interest (including swap payments) of $2.9
million during the three-month period ended December 31, 2020
compared to the three-month period ended December 31, 2019.
Net Cash Used in Investing Activities
Net cash used in investing activities was $14.7
million in the three-month period ended December 31, 2020, which
mainly consisted of payments for upgrades for certain of our
vessels and payments for the delivery of one secondhand vessel;
partly off-set by proceeds we received from the sale of one vessel
and by return of capital we received from three entities jointly
-owned with York pursuant to the Framework Deed.
Net cash used in investing activities was $17.8
million in the three-month period ended December 31, 2019, which
mainly consisted of advance payments for upgrades for certain of
our vessels, payments for the acquisition of three secondhand
vessels, advance payment for the acquisition of one vessel, which
was delivered in January 2020; partly off-set by return of capital
we received from two entities jointly -owned with York pursuant to
the Framework Deed and proceeds we received from the sale of three
vessels.
Net Cash Used in Financing Activities
Net cash used in financing activities was $49.2
million in the three-month period ended December 31, 2020, which
mainly consisted of (a) $32.0 million net payments relating to our
debt financing agreements, (b) $9.3 million we paid for dividends
to holders of our common stock for the third quarter of 2020 and
(c) $0.9 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”), $2.2 million we paid for dividends to
holders of our 8.75% Series D Cumulative Redeemable Perpetual
Preferred Stock (“Series D Preferred Stock”) and $2.5 million we
paid for dividends to holders of our 8.875% Series E Cumulative
Redeemable Perpetual Preferred Stock (“Series E Preferred Stock”)
for the period from July 15, 2020 to October 14, 2020.
Net cash used in financing activities was $67.3
million in the three-month period ended December 31, 2019, which
mainly consisted of (a) $52.6 million of payments relating to our
debt financing agreements, (b) $7.0 million we paid for dividends
to holders of our common stock for the third quarter of 2019 and
(c) $1.0 million we paid for dividends to holders of our 7.625%
Series B Preferred Stock, $2.1 million we paid for dividends to
holders of our 8.500% Series C Preferred Stock”, $2.2 million we
paid for dividends to holders of our 8.75% Series D Preferred Stock
and $2.6 million we paid for dividends to holders of our 8.875%
Series E Preferred Stock for the period from July 15, 2019 to
October 14, 2019.
Year ended December 31, 2020 compared to
the year ended December 31, 2019
During the years ended December 31, 2020 and
2019, we had an average of 60.0 and 60.3 vessels, respectively, in
our fleet. In the year ended December 31, 2020, we accepted
delivery of the newbuild vessels YM Triumph, YM Truth and YM
Totality with an aggregate TEU capacity of 38,070 and the
secondhand vessels JPO Virgo, JPO Scorpius and Neokastro with an
aggregate TEU capacity of 11,008; and we sold the vessels Neapolis,
Kawasaki, Kokura, Zagora and Singapore Express with an aggregate
TEU capacity of 22,503. In the year ended December 31, 2019, we
accepted delivery of the secondhand containerships Vulpecula,
Volans and Vela with an aggregate TEU capacity of 12,774 and we
sold the vessels Sierra II, Reunion, Namibia II, MSC Pylos and
Piraeus with an aggregate TEU capacity of 13,082. In the year ended
December 31, 2020 and 2019, our fleet ownership days totaled 21,965
and 22,002 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.
| |
|
Year ended December 31, |
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
2019 |
|
|
|
2020 |
|
|
|
Change |
|
Percentage Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
478.1 |
|
|
$ |
460.3 |
|
|
$ |
(17.8) |
|
(3.7%) |
|
| Voyage
expenses |
|
(5.3) |
|
|
|
(7.4) |
|
|
|
2.1 |
|
39.6% |
|
| Voyage expenses –
related parties |
|
(5.3) |
|
|
|
(6.5) |
|
|
|
1.2 |
|
22.6% |
|
| Vessels’ operating
expenses |
|
(116.1) |
|
|
|
(117.1) |
|
|
|
1.0 |
|
0.9% |
|
| General and
administrative expenses |
|
(5.6) |
|
|
|
(7.4) |
|
|
|
1.8 |
|
32.1% |
|
| Management fees –
related parties |
|
(21.3) |
|
|
|
(21.6) |
|
|
|
0.3 |
|
1.4% |
|
| General and
administrative expenses - non-cash component |
|
(3.9) |
|
|
|
(3.7) |
|
|
|
(0.2) |
|
(5.1%) |
|
| Amortization of
dry-docking and special survey costs |
|
(8.9) |
|
|
|
(9.0) |
|
|
|
0.1 |
|
1.1% |
|
| Depreciation |
|
(113.5) |
|
|
|
(108.7) |
|
|
|
(4.8) |
|
(4.2%) |
|
| Loss on sale /
disposal of vessels |
|
(19.6) |
|
|
|
(79.1) |
|
|
|
59.5 |
|
n.m. |
|
| Loss on vessels
held for sale |
|
(2.5) |
|
|
|
(7.7) |
|
|
|
5.2 |
|
n.m. |
|
| Vessels’
impairment loss |
|
(3.0) |
|
|
|
(31.6) |
|
|
|
28.6 |
|
n.m. |
|
| Foreign exchange
losses |
|
- |
|
|
|
(0.3) |
|
|
|
0.3 |
|
n.m. |
|
| Interest
income |
|
3.3 |
|
|
|
1.9 |
|
|
|
(1.4) |
|
(42.4%) |
|
| Interest and
finance costs |
|
(89.0) |
|
|
|
(68.7) |
|
|
|
(20.3) |
|
(22.8%) |
|
| Swaps’ breakage
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
- |
|
| Income from equity
method investments |
|
11.4 |
|
|
|
16.2 |
|
|
|
4.8 |
|
42.1% |
|
| Other |
|
0.8 |
|
|
|
1.2 |
|
|
|
0.4 |
|
50.0% |
|
| Loss on derivative
instruments |
|
(0.6) |
|
|
|
(1.9) |
|
|
|
1.3 |
|
n.m. |
|
| Net
Income |
$ |
99.0 |
|
|
$ |
8.9 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended December 31, |
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
2019 |
|
|
2020 |
|
|
|
Change |
|
|
PercentageChange |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
478.1 |
|
$ |
460.3 |
|
|
$ |
(17.8 |
) |
|
(3.7) |
|
| Accrued charter
revenue |
|
3.9 |
|
|
21.3 |
|
|
|
17.4 |
|
|
n.m. |
|
| Amortization of
Time-charter assumed |
|
0.2 |
|
|
0.2 |
|
|
|
- |
|
|
- |
|
| Voyage revenue
adjusted on a cash basis (1) |
$ |
482.2 |
|
$ |
481.8 |
|
|
$ |
(0.4 |
) |
|
(0.1% |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
|
2019 |
|
|
2020 |
|
|
|
Change |
|
|
PercentageChange |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average number of
vessels |
|
60.3 |
|
|
60.0 |
|
|
|
(0.3 |
) |
|
(0.5% |
) |
| Ownership
days |
|
22,002 |
|
|
21,965 |
|
|
|
(37 |
) |
|
(0.2% |
) |
| Number of vessels
under dry-docking |
|
6 |
|
|
11 |
|
|
|
5 |
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is not a recognized
measurement under U.S. GAAP. Refer to “Financial Summary” above for
the reconciliation of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue decreased by 3.7%, or $17.8 million, to $460.3
million during the year ended December 31, 2020, from $478.1
million during the year ended December 31, 2019. The decrease is
mainly attributable to revenue not earned by five vessels sold
during the year ended December 31, 2019 and five vessels sold
during the year ended December 31, 2020, to decreased hire rates in
certain of our vessels and to increased idle days of our fleet
during the year ended December 31, 2020 compared to the year ended
December 31, 2019; partly offset by revenue earned by three vessels
acquired during the fourth quarter of 2019, one vessel acquired
during the first quarter of 2020, four vessels acquired during the
third quarter of 2020 and one vessel acquired during the fourth
quarter of 2020.
Voyage revenue adjusted on a cash basis (which eliminates
non-cash “Accrued charter revenue”), decreased by 0.1%, or $0.4
million, to $481.8 million during the year ended December 31, 2020,
from $482.2 million during the year ended December 31, 2019.
Accrued charter revenue for the years ended December 31, 2020 and
2019, was a positive amount of $21.3 million and $3.9 million,
respectively.
Voyage Expenses
Voyage expenses were $7.4 million and $5.3 million for the years
ended December 31, 2020 and 2019, respectively. Voyage expenses
mainly include (i) off-hire expenses of our vessels, primarily
related to fuel consumption and (ii) third party commissions.
Voyage expenses for the year ended December 31, 2019, included a
cost of $1.5 million relating to our vessels’ tank cleaning in
order to comply with the global sulphur cap of 0.5% m/m in
anticipation of the entry into force on January 1, 2020 of the
relevant MARPOL Annex VI regulations.
Voyage Expenses – related parties
Voyage expenses – related parties were $6.5 million and $5.3
million for the years ended December 31, 2020 and 2019,
respectively. Voyage expenses – related parties represent (i) fees
of 1.25%1 in the aggregate on voyage revenues charged by a related
manager and a service provider and (ii) charter brokerage fees
payable to two related charter brokerage companies for an amount of
approximately $0.8 million and $0.4 million, in the aggregate, for
the years ended December 31, 2020 and 2019, respectively.
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 $117.1 million and $116.1
million during the year ended December 31, 2020 and 2019,
respectively. Daily vessels’ operating expenses were $5,329 and
$5,277 for the year ended December 31, 2020 and 2019, respectively.
Daily operating expenses are calculated as vessels’ operating
expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $7.4 million and $5.6
million during the year ended December 31, 2020 and 2019,
respectively, and both include $2.5 million paid to a related
manager.
Management Fees – related parties
Management fees paid to our related managers were $21.6 million
and $21.3 million during the year ended December 31, 2020 and 2019,
respectively.
_________________1 0.75% until June 30, 2019
General and administrative expenses - non-cash component
General and administrative expenses - non-cash component for the
year ended December 31, 2020 amounted to $3.7 million, representing
the value of the shares issued to a related manager on March 30,
2020, June 30, 2020, September 30 and December 30, 2020. General
and administrative expenses – non-cash component for the year ended
December 31, 2019 amounted to $3.9 million representing the value
of the shares issued to a related manager on March 29, 2019, June
28, 2019, September 30, 2019 and December 30, 2019.
Amortization of dry-docking and special survey
Amortization of deferred dry-docking and special survey costs
was $9.0 million and $8.9 million during the year ended December
31, 2020 and 2019, respectively. During the year ended December 31,
2020, 11 vessels underwent and completed their special survey.
During the year December 31, 2019, six vessels underwent and
completed their special survey.
Depreciation
Depreciation expense for the year ended December 31, 2020 and
2019 was $108.7 million and $113.5 million, respectively.
Loss on sale / disposal of vessels
During the year ended December 31, 2020, we recorded an
aggregate net loss of $79.1 million from the sale of the vessels
Neapolis, Kawasaki, Kokura, Zagora and Singapore Express. Neapolis
and Zagora were classified as assets held for sale as at December
31, 2019. During the year ended December 31, 2019, we recorded an
aggregate loss of $19.6 million from the sale of the container
vessels Piraeus, MSC Pylos, Reunion, Sierra II and Namibia II. MSC
Pylos was classified as asset held for sale as at December 31,
2018.
Loss on vessels held for sale
During the year ended December 31, 2020, we recorded a loss on
vessels held for sale of $7.7 million representing the expected
loss from sale of the vessel Halifax Express during the next
twelve-month period. During the year ended December 31, 2019, we
recorded a loss on vessels held for sale of $2.5 million
representing the expected loss from the sale vessels Neapolis and
Zagora during the next twelve-month period.
Vessels’ impairment loss
During the year ended December 31, 2020, we recorded an
impairment loss in relation to five of our vessels in the amount of
$31.6 million, in the aggregate. During the year ended December 31,
2019, we recorded an impairment loss in relation to two of our
vessels in the amount of $3.0 million, in the aggregate.
Interest Income
Interest income amounted to $1.9 million and $3.3 million for
the years ended December 31, 2020 and 2019, respectively.
Interest and Finance Costs
Interest and finance costs were $68.7 million and $89.0 million
during the years ended December 31, 2020 and 2019, respectively.
The decrease is mainly attributable to the decreased financing cost
and the reduced average loan balances during year ended December
31, 2020 compared to the year ended December 31, 2019.
Swaps’ Breakage Costs
During the year ended December 31, 2020, we terminated two
interest rate derivative instruments that qualified for hedge
accounting and we paid the counterparties breakage costs in the
amount of $0.006 million in the aggregate. During the year ended
December 31, 2019, we terminated eight interest rate derivative
instruments that qualified for hedge accounting and three that did
not qualify for hedge accounting and we paid the counterparties
breakage costs, net in the amount of $0.016 million in the
aggregate.
Income from Equity Method Investments
During the year ended December 31, 2020, we recorded an income
from equity method investments of $16.2 million representing our
share of the income in jointly owned companies pursuant to the
Framework Deed dated May 15, 2013, as amended and restated (the
“Framework Deed”), with York. As of December 31, 2020, 13 companies
are jointly-owned with York (of which, 10 companies currently own
vessels). During the year ended December 31, 2019, we recorded an
income from equity method investments of $11.4 million also
relating to investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our seven interest rate derivative instruments
which were outstanding as of December 31, 2020 equates to the
amount that would be paid by us or to us should those instruments
be terminated. As of December 31, 2020, the fair value of these
seven interest rate derivative instruments in aggregate amounted to
a liability of $7.1 million. The change in the fair value of the
interest rate derivative instruments that qualified for hedge
accounting is recorded in “Other Comprehensive Income” (“OCI”) and
reclassified into earnings in the same period or periods during
which the hedged transaction affects earnings and is presented in
the same income statement line item as the earnings effect of the
hedged item while the change in the fair value of the interest rate
derivatives representing hedge components excluded from the
assessment of effectiveness are recognized currently in earnings
and are presented in Gain/(Loss) on Derivative Instruments. The
change in the fair value of the interest rate derivative
instruments that did not qualify for hedge accounting is recorded
in Gain/(Loss) on Derivative Instruments. For the year ended
December 31, 2020, a net loss of $6.7 million has been included in
OCI and a net loss of $2.3 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 year ended December 31, 2020.
Cash Flows
Years ended December 31, 2020 and
2019
| Condensed cash
flows |
|
Years ended December 31, |
|
(Expressed in millions of U.S. dollars) |
|
|
2019 |
|
|
|
2020 |
|
| Net Cash Provided by Operating
Activities |
|
$ |
250.4 |
|
|
$ |
274.3 |
|
| Net Cash Used in Investing
Activities |
|
$ |
(8.9 |
) |
|
$ |
(36.4 |
) |
| Net Cash Used in Financing
Activities |
|
$ |
(212.2 |
) |
|
$ |
(241.9 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the year
ended December 31, 2020, increased by $23.9 million to $274.3
million, from $250.4 million for the year ended December 31, 2019.
The increase is mainly attributable to 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 $11.8 million and to
decreased payments for interest (including swap payments) of $16.4
million during the year ended December 31, 2020, compared to the
year ended December 31, 2019; partly off-set by decreased cash from
operations of $0.4 million and increased special survey costs of
$9.2 million during the year ended December 31, 2020, compared to
the year ended December 31, 2019.
Net Cash Used in Investing Activities
Net cash used in investing activities was $36.4 million in the
year ended December 31, 2020, which mainly consisted of payments
for upgrades for certain of our vessels and payments for the
delivery of three newbuild vessels and three secondhand vessels;
partly off-set by proceeds we received from the sale of five of our
vessels and by return of capital we received from ten entities
jointly -owned with York pursuant to the Framework Deed.
Net cash used in investing activities was $8.9 million in the
year ended December 31, 2019, which mainly consisted of advance
payments for upgrades for certain of our vessels, payments for the
acquisition of three secondhand vessels, advance payment for the
acquisition of one vessel, which was delivered in January 2020;
partly off-set by return of capital we received from 11 entities
jointly -owned with York pursuant to the Framework Deed and
proceeds we received from the sale of five vessels.
Net Cash Used in Financing Activities
Net cash used in financing activities was $241.9 million in the
year ended December 31, 2020, which mainly consisted of (a) $165.1
million net payments relating to our debt financing agreements, (b)
$34.3 million we paid for dividends to holders of our common stock
for the fourth quarter of 2019, the first quarter of 2020, the
second quarter of 2020 and the third quarter of 2020 and (c) $3.8
million we paid for dividends to holders of our 7.625% Series B
Preferred Stock, $8.5 million we paid for dividends to holders of
our 8.500% Series C Preferred Stock, $8.7 million we paid for
dividends to holders of our 8.75% Series D Preferred Stock and
$10.2 million we paid for dividends to holders of our 8.875% Series
E Preferred Stock for the period from October 15, 2019 to January
14, 2020, January 15, 2020 to April 14, 2020, April 15, 2020 to
July 14, 2020 and July 15, 2020 to October 14, 2020.
Net cash used in financing activities was $212.2 million in the
year ended December 31, 2019, which mainly consisted of (a) $149.6
million of net payments relating to our debt financing agreements
(including the prepayments following the sale of five container
vessels during the year ended December 31, 2019), (b) $27.4 million
we paid for dividends to holders of our common stock for the fourth
quarter of 2018, the first quarter of 2019, the second quarter of
2019 and the third quarter of 2019 and (c) $3.8 million we paid for
dividends to holders of our Series B Preferred Stock, $8.5 million
we paid for dividends to holders of our Series C Preferred Stock,
$8.8 million we paid for dividends to holders of our Series D
Preferred Stock and $10.2 million we paid for dividends to holders
of our Series E Preferred Stock for the period from October 15,
2018 to January 14, 2019, January 15, 2019 to April 14, 2019, April
15, 2019 to July 14, 2019 and July 15, 2019 to October 14,
2019.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of December 31, 2020, we had a total cash liquidity of $191.9
million, consisting of cash, cash equivalents and restricted
cash.
Debt-free vessels
As of February 1, 2021, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
fleet list for full details)
|
Vessel Name |
|
YearBuilt |
|
TEUCapacity |
| ETOILE |
|
2005 |
|
2,556 |
| MICHIGAN |
|
2008 |
|
1,300 |
| ENSENADA (*) |
|
2001 |
|
5,576 |
| MONEMVASIA
(*) |
|
1998 |
|
2,472 |
| ARKADIA (*) |
|
2001 |
|
1,550 |
(*) Vessels acquired pursuant to the Framework Deed with
York.
Conference Call details:
On Tuesday, February 2, 2021 at 8:30 a.m. EST, Costamare’s
management team will hold a conference call to discuss the
financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until February 9, 2021. 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:
10151946.
Live webcast:There will also be a simultaneous
live webcast over the Internet, through the Costamare Inc. website
(www.costamare.com). Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading owners and
providers of containerships for charter. The Company has 47 years
of history in the international shipping industry and a fleet of 73
containerships, with a total capacity of approximately 533,000 TEU,
including two newbuild containerships currently under construction.
Ten of our containerships have been acquired pursuant to the
Framework Deed with York 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, Series D
Preferred Stock and Series E Preferred Stock trade on the New York
Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”,
“CMRE PR D” and “CMRE PR E”, 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”, “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 the Company’s Annual
Report on Form 20-F (File No. 001-34934) under the caption “Risk
Factors” and the Company’s Results for the First Quarter ended
March 31, 2020 on Form 6-K (filed on May 11, 2020 with the SEC)
under the caption “Risk Factor Update”.
Company Contacts:
Gregory Zikos - Chief Financial Officer Konstantinos Tsakalidis
- Business Development
Costamare Inc., MonacoTel: (+377) 93 25 09 40Email:
ir@costamare.com
Fleet List
The table below provides additional information, as of February
1, 2021, 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 |
YearBuilt |
Capacity (TEU) |
Current Daily Charter Rate(1)
(U.S. dollars) |
Expiration of Charter(2) |
|
1 |
TRITON(ii) |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
|
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
|
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
|
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
6 |
YM TRIUMPH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
7 |
YM TRUTH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
8 |
YM TOTALITY(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
|
9 |
CAPE AKRITAS(i) |
ZIM/MSC |
2016 |
11,010 |
34,750/33,000 |
June 2031(3) |
|
10 |
CAPE TAINARO(i) |
ZIM/MSC |
2017 |
11,010 |
38,000/33,000 |
January 2031(3) |
|
11 |
CAPE KORTIA(i) |
ZIM/MSC |
2017 |
11,010 |
34,750/33,000 |
July 2031(3) |
|
12 |
CAPE SOUNIO(i) |
ZIM/MSC |
2017 |
11,010 |
38,000 /33,000 |
January 2031(3) |
|
13 |
CAPE ARTEMISIO(i) |
Hapag Lloyd |
2017 |
11,010 |
36,650 |
March 2025 |
|
14 |
COSCO GUANGZHOU |
COSCO |
2006 |
9,469 |
30,900 |
April 2022 |
|
15 |
COSCO NINGBO |
COSCO |
2006 |
9,469 |
30,900 |
April 2022 |
|
16 |
YANTIAN |
COSCO |
2006 |
9,469 |
39,600 |
February 2024(4) |
|
17 |
BEIJING |
COSCO |
2006 |
9,469 |
39,600 |
March 2024(4) |
|
18 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
39,600 |
February 2024(4) |
|
19 |
MSC AZOV |
MSC |
2014 |
9,403 |
46,300 |
December 2026(5) |
|
20 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(6) |
|
21 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(7) |
|
22 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
45,300 |
January 2026(8) |
|
23 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
45,300 |
February 2026(9) |
|
24 |
VALOR |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
|
25 |
VALUE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
|
26 |
VALIANT |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
June 2025 |
|
27 |
VALENCE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
July 2025 |
|
28 |
VANTAGE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
September 2025 |
|
29 |
NAVARINO |
MSC |
2010 |
8,531 |
31,000 |
January 2025(10) |
|
30 |
MAERSK KLEVEN |
Maersk |
1996 |
8,044 |
17,500 |
June 2023(11) |
|
31 |
MAERSK KOTKA |
Maersk |
1996 |
8,044 |
17,500 |
June 2023(12) |
|
32 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
|
33 |
KURE |
COSCO |
1996 |
7,403 |
31,000 |
March 2023(13) |
|
34 |
MSC METHONI |
MSC |
2003 |
6,724 |
29,000 |
September 2021 |
|
35 |
YORK |
Maersk |
2000 |
6,648 |
21,250 |
August 2022 |
|
36 |
KOBE |
RCL Feeder |
2000 |
6,648 |
14,500 |
August 2021 |
|
37 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
18,500 |
March 2022(14) |
|
38 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
18,500 |
March 2022(14) |
|
39 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
18,500 |
March 2022(14) |
|
40 |
MAERSK KOLKATA |
Maersk |
2003 |
6,644 |
18,500 |
March 2022(14) |
|
41 |
MAERSK KINGSTON |
Maersk |
2003 |
6,644 |
18,500 |
March 2022(14) |
|
42 |
MAERSK KALAMATA |
Maersk |
2003 |
6,644 |
18,500 |
March 2022(14) |
|
43 |
VENETIKO |
(*) |
2003 |
5,928 |
(*) |
July 2021 |
|
44 |
ENSENADA (i) |
(*) |
2001 |
5,576 |
21,500 |
June 2021 |
|
45 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
14,438 |
October 2021(15) |
|
46 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
14,438 |
October 2021(15) |
|
47 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024 |
|
48 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024 |
|
49 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025 |
|
50 |
MARATHOPOLIS |
Maersk |
2013 |
4.957 |
13,500 |
July 2025 |
|
51 |
OAKLAND EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
13,750 |
Mach 2021 |
|
52 |
HALIFAX EXPRESS |
- |
2000 |
4,890 |
Vessel agreed to be sold |
|
53 |
VULPECULA |
OOCL |
2010 |
4,258 |
22,700 |
February 2023(16) |
|
54 |
VOLANS |
ZIM |
2010 |
4,258 |
7,000 |
March 2021 |
|
55 |
VIRGO |
Evergreen |
2009 |
4,258 |
8,600 |
February 2021 |
|
56 |
VELA |
OOCL |
2009 |
4,258 |
22,700 |
January 2023(17) |
|
57 |
ULSAN |
Maersk |
2002 |
4,132 |
12,000 |
June 2021 |
|
58 |
NEOKASTRO |
(*) |
2011 |
4,178 |
(*) |
December 2021 |
|
59 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024 |
|
60 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025 |
|
61 |
LAKONIA |
COSCO |
2004 |
2,586 |
17,300 |
February 2022(18) |
|
62 |
JPO SCORPIUS |
Pool |
2007 |
2,572 |
Pool Participation |
|
63 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
February 2021 |
|
64 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
17,300 |
March 2022(19) |
|
65 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
|
66 |
MESSINI |
(*) |
1997 |
2,458 |
9,850 |
March 2021 |
|
67 |
ARKADIA(i) |
Evergreen |
2001 |
1,550 |
8,650 |
April 2021 |
|
68 |
PROSPER |
Sealand Maersk Asia |
1996 |
1,504 |
8,500 |
March 2021 |
|
69 |
MICHIGAN |
MSC |
2008 |
1,300 |
5,800 |
September 2021 |
|
70 |
TRADER |
(*) |
2008 |
1,300 |
(*) |
November 2021 |
|
71 |
LUEBECK |
MSC |
2001 |
1,078 |
7,750 |
February 2022(20) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Newbuilds |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Expected Delivery(21) |
|
|
Vessel Name |
Shipyard |
Capacity (TEU) |
Charterer |
|
|
1 |
YZJ2015-2060 |
Jiangsu
Yangzijiang |
12,690 |
Yang Ming |
Q1 2021 |
|
|
Shipbuilding Group |
|
|
2 |
YZJ2015-2061 |
Jiangsu
Yangzijiang |
12,690 |
Yang Ming |
Q2 2021 |
|
|
Shipbuilding Group |
|
(1) Daily charter rates are gross, unless stated otherwise.
Amounts set out for current daily charter rate are the amounts
contained in the charter contracts.(2) Charter terms and expiration
dates are based on the earliest date charters could expire. (3)
Upon redelivery of each vessel from ZIM between March 2021 and
October 2021, each vessel will commence a charter for a period of
approximately 10 years, with MSC at a daily rate of $33,000. Until
then the daily charter rate of Cape Akritas and Cape Kortia will be
$34,750 and the daily charter rate of Cape Sounio and Cape Tainaro
will be $38,000.(4) The daily rate of $39,600 will apply from April
1, 2021 for Yantian and Cosco Hellas and from May 1, 2021 for
Beijing. Until the aforementioned dates the vessels will be
chartered at an undisclosed daily rate.(5) This charter rate will
be earned by MSC Azov until December 2, 2023. From the
aforementioned date until the expiry of the charter, the daily rate
will be $35,300.(6) This charter rate will be earned by MSC Amalfi
until March 16, 2024. From the aforementioned date until the expiry
of the charter, the daily rate will be $35,300.(7) This charter
rate will be earned by MSC Ajaccio until February 1, 2024. From the
aforementioned date until the expiry of the charter, the daily rate
will be $35,300.(8) This charter rate will be earned by MSC Athens
until January 29, 2023. From the aforementioned date until the
expiry of the charter, the daily rate will be $35,300.(9) This
charter rate will be earned by MSC Athos until February 24, 2023.
From the aforementioned date until the expiry of the charter, the
daily rate will be $35,300.(10) This charter rate will be earned by
Navarino from April 15, 2021. Until then the daily charter rate
will be $23,000.(11) From April 9, 2021, the daily rate of Maersk
Kleven is a base rate of $17,000, adjusted pursuant to the terms of
a 50:50 profit/loss sharing mechanism based on market conditions
with a minimum charter rate of $12,000 and a maximum charter rate
of $25,000.(12) From April 25, 2021, the daily rate of Maersk Kotka
is a base rate of $17,000, adjusted pursuant to the terms of a
50:50 profit/loss sharing mechanism based on market conditions with
a minimum charter rate of $12,000 and a maximum charter rate of
$25,000.(13) This charter rate will be earned by Kure from March
23, 2021. Until then the daily charter rate will be $9,500.(14) The
daily rate for Sealand Washington, Sealand Michigan, Sealand
Illinois, Maersk Kolkata, Maersk Kingston and Maersk Kalamata is a
base rate of $16,000, adjusted pursuant to the terms of a 50:50
profit/loss sharing mechanism based on market conditions with a
minimum charter rate of $12,000 and a maximum charter rate of
$25,000.(15) 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 2020, 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
sixth optional year has been determined at $14,438 per day.(16)
This charter rate will be earned by Vulpecula from March 28, 2021.
Until then the daily charter rate will be $7,000.(17) This charter
rate will be earned by Vela from February 13, 2021. Until then the
daily charter rate will be $7,950.(18) This charter rate will be
earned by Lakonia from February 24, 2021. Until then the daily
charter rate will be $7,500.(19) This charter rate will be earned
by Areopolis from March 3, 2021. Until then the daily charter rate
will be $7,500.(20) This charter rate will be earned by Luebeck
from February 19, 2021. Until then the daily charter rate will be
$6,200. (21) Based on latest shipyard construction schedule,
subject to change.
(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 charterer’s identity and/or current daily charter
rates and/or charter expiration dates, which are treated as
confidential.
| |
| |
|
Consolidated Statements of Income |
| |
| |
|
Year ended December 31, |
|
Three-month period ended December 31, |
|
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Audited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
REVENUES: |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
478,109 |
|
$ |
460,319 |
|
$ |
124,468 |
|
$ |
119,143 |
|
| |
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(5,291 |
) |
|
(7,372 |
) |
|
(2,111 |
) |
|
(989 |
) |
| Voyage expenses – related
parties |
|
(5,282 |
) |
|
(6,516 |
) |
|
(1,672 |
) |
|
(1,763 |
) |
| Vessels' operating
expenses |
|
(116,101 |
) |
|
(117,054 |
) |
|
(28,779 |
) |
|
(32,055 |
) |
| General and administrative
expenses |
|
(5,551 |
) |
|
(7,360 |
) |
|
(1,436 |
) |
|
(2,059 |
) |
| Management fees - related
parties |
|
(21,319 |
) |
|
(21,616 |
) |
|
(5,155 |
) |
|
(5,593 |
) |
| General and administrative
expenses - non-cash component |
|
(3,879 |
) |
|
(3,655 |
) |
|
(1,426 |
) |
|
(1,239 |
) |
| Amortization of dry-docking
and special survey costs |
|
(8,948 |
) |
|
(9,056 |
) |
|
(2,211 |
) |
|
(2,291 |
) |
| Depreciation |
|
(113,462 |
) |
|
(108,700 |
) |
|
(28,381 |
) |
|
(27,082 |
) |
| Gain (Loss) on sale / disposal
of vessels, net |
|
(19,589 |
) |
|
(79,120 |
) |
|
(689 |
) |
|
499 |
|
| Loss on vessels held for
sale |
|
(2,495 |
) |
|
(7,665 |
) |
|
(2,495 |
) |
|
(7,665 |
) |
| Vessels’ impairment loss |
|
(3,042 |
) |
|
(31,577 |
) |
|
- |
|
|
- |
|
| Foreign exchange gains /
(losses) |
|
(27 |
) |
|
(300 |
) |
|
1 |
|
|
(97 |
) |
| Operating
income |
$ |
173,123 |
|
$ |
60,328 |
|
$ |
50,114 |
|
$ |
38,809 |
|
| |
|
|
|
|
|
|
|
|
| OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
| Interest income |
$ |
3,349 |
|
$ |
1,827 |
|
$ |
837 |
|
$ |
363 |
|
| Interest and finance
costs |
|
(89,007 |
) |
|
(68,702 |
) |
|
(19,665 |
) |
|
(17,250 |
) |
| Swaps’ breakage cost, net |
|
(16 |
) |
|
(6 |
) |
|
- |
|
|
- |
|
| Income from equity method
investments |
|
11,369 |
|
|
16,195 |
|
|
3,960 |
|
|
3,994 |
|
| Other |
|
784 |
|
|
1,181 |
|
|
223 |
|
|
713 |
|
| Gain (Loss) on derivative
instruments |
|
(603 |
) |
|
(1,946 |
) |
|
418 |
|
|
446 |
|
| Total other expenses,
net |
$ |
(74,124 |
) |
$ |
(51,451 |
) |
$ |
(14,227 |
) |
$ |
(11,734 |
) |
| Net
Income |
$ |
98,999 |
|
$ |
8,877 |
|
$ |
35,887 |
|
$ |
27,075 |
|
| Earnings allocated to
Preferred Stock |
|
(31,269 |
) |
|
(31,082 |
) |
|
(7,817 |
) |
|
(7,767 |
) |
| Gain on retirement of
Preferred Stock |
|
- |
|
|
619 |
|
|
- |
|
|
- |
|
| Net Income / (Loss)
available to common stockholders |
$ |
67,730 |
|
$ |
(21,586 |
) |
$ |
28,070 |
|
$ |
19,308 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Earnings / (Losses) per common
share, basic and diluted |
$ |
0.59 |
|
$ |
(0.18 |
) |
$ |
0.24 |
|
$ |
0.16 |
|
| Weighted average number of
shares, basic and diluted |
|
115,747,452 |
|
|
120,696,130 |
|
|
118,724,718 |
|
|
121,817,769 |
|
| |
|
|
|
|
|
|
|
|
|
COSTAMARE INC. |
|
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
As of December 31, |
|
(Expressed in thousands of U.S. dollars) |
|
2019 |
|
2020 |
|
ASSETS |
|
(Audited) |
|
(Unaudited) |
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
$ |
148,928 |
$ |
143,922 |
|
Restricted cash |
|
6,912 |
|
4,998 |
|
Accounts receivable |
|
7,397 |
|
8,249 |
|
Inventories |
|
10,546 |
|
10,455 |
|
Due from related parties |
|
7,576 |
|
1,623 |
|
Fair value of derivatives |
|
748 |
|
460 |
|
Insurance claims receivable |
|
1,607 |
|
883 |
|
Asset held for sale |
|
4,908 |
|
12,416 |
|
Time charter assumed |
|
192 |
|
191 |
|
Prepayments and other |
|
8,430 |
|
8,853 |
|
Total current assets |
$ |
197,244 |
$ |
192,050 |
|
FIXED ASSETS, NET: |
|
|
|
|
|
Right-of-use assets |
$ |
188,429 |
$ |
199,098 |
|
Vessels and advances, net |
|
2,431,830 |
|
2,450,510 |
|
Total fixed assets, net |
$ |
2,620,259 |
$ |
2,649,608 |
|
NON-CURRENT ASSETS: |
|
|
|
|
|
Equity method investments |
$ |
111,681 |
$ |
78,227 |
|
Deferred charges, net |
|
21,983 |
|
27,682 |
|
Accounts receivable, non-current |
|
8,600 |
|
3,896 |
|
Restricted cash |
|
40,031 |
|
42,976 |
|
Fair value of derivatives, non-current |
|
605 |
|
- |
|
Time charter assumed, non-current |
|
1,030 |
|
839 |
|
Other non-current assets |
|
10,525 |
|
15,238 |
|
Total assets |
$ |
3,011,958 |
$ |
3,010,516 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current portion of long-term debt |
$ |
210,745 |
$ |
147,137 |
|
Accounts payable |
|
6,215 |
|
7,582 |
|
Due to related parties |
|
473 |
|
432 |
|
Finance lease liabilities |
|
16,810 |
|
16,495 |
|
Accrued liabilities |
|
19,417 |
|
17,621 |
|
Unearned revenue |
|
10,387 |
|
11,893 |
|
Fair value of derivatives |
|
397 |
|
3,440 |
|
Other current liabilities |
|
2,090 |
|
2,374 |
|
Total current liabilities |
$ |
266,534 |
$ |
206,974 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
Long-term debt, net of current portion |
$ |
1,206,405 |
$ |
1,305,076 |
|
Finance lease liabilities, net of current portion |
|
119,925 |
|
116,366 |
|
Fair value of derivatives, net of current portion |
|
433 |
|
3,653 |
|
Unearned revenue, net of current portion |
|
7,933 |
|
29,627 |
|
Total non-current liabilities |
$ |
1,334,696 |
$ |
1,454,722 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
Preferred stock |
$ |
- |
$ |
- |
|
Common stock |
|
12 |
|
12 |
|
Additional paid-in capital |
|
1,351,352 |
|
1,366,486 |
|
Retained earnings / (Accumulated deficit) |
|
60,578 |
|
-9,721 |
|
Accumulated other comprehensive loss |
|
-1,214 |
|
-7,957 |
|
Total stockholders’ equity |
$ |
1,410,728 |
$ |
1,348,820 |
|
Total liabilities and stockholders’ equity |
$ |
3,011,958 |
$ |
3,010,516 |
| |
|
|
|
|
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