Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the fourth quarter and
year ended December 31, 2017.
- Adjusted Net Income available to common stockholders of $18.4
million or $0.17 per share and $76.9 million or $0.77 per share for
the three months and the year ended December 31, 2017,
respectively.
- Accepted delivery on January 23, 2018 of the 3,800 TEU
containership Polar Argentina (ex Hull Nr YZJ2015-1206). The
vessel, upon its delivery, commenced its seven-year charter with
Hamburg Süd.
- Acquired on November 3, 2017 the 2005-built 2,556 TEU container
vessel CMA CGM L'Etoile with cash from operations.
- No ships laid up. Chartered in total 16 vessels since September
30, 2017.
- Remaining equity capital expenditure commitments of
approximately $1.07 million (amount represents our participation)
relating to one contracted newbuild vessel pursuant to our joint
venture with York which is expected to be delivered in the second
quarter of 2018.
- Declared dividend of $0.10 per share on our common stock and
dividends on all three classes of our Preferred Stock.
See “Financial Summary” and “Non-GAAP Measures” below for
additional detail
New Business Developments
A. Newbuild vessel
deliveries
- On January 23, 2018, we accepted delivery of the 3,800 TEU
containership Polar Argentina (ex Hull Nr YZJ2015-1206), which was
acquired pursuant to our joint venture with York. The vessel
commenced its 7-year charter with Hamburg Süd. Costamare holds a
49% interest in the entity that owns the vessel.
B. New acquisition
In October 2017, the Company agreed to purchase
the 2005-built 2,556 TEU container vessel CMA CGM L'Etoile. On
November 3, 2017 we accepted delivery of the vessel. The vessel is
chartered to CMA CGM for a period, expiring at the charterers’
option, between March 10, 2018 and June 10, 2018, at a daily rate
of $10,250. The acquisition was funded with cash from
operations.
C. New charter agreements
- All of our vessels are currently employed.
- The Company has chartered in total 16 vessels since September
30, 2017. More specifically, the Company:
- Agreed to extend the charter of the 2017-built, 11,010 TEU
containership Cape Artemisio with Hapag Lloyd, for a period of 12
months plus/minus 30 days in charterers’ option, starting from June
12, 2018, at a daily rate of $27,000 (net).
- Agreed to extend the charter of the 2017-built, 11,010 TEU
containership Cape Tainaro with OOCL, for a period of 11 to 14
months, starting from April 1, 2018, at a daily rate of
$28,250.
- Agreed to extend the charter of the 2006-built, 9,469 TEU
containership Cosco Guangzhou with Cosco for a period starting from
December 24, 2017 until January 17, 2018, at a daily rate of
$13,500. Subsequently, agreed to charter the vessel with the same
charterers for a period of 4 to 6 months, starting from March 18,
2018 at a daily rate of $16,000.
- Agreed to extend the charter of the 2006-built, 9,469 TEU
containership Cosco Ningbo with Cosco for a period of 6 to 8
months, starting from January 19, 2018, at a daily rate of
$16,000.
- Agreed to extend the charter of the 2006-built, 9,469 TEU
containership Cosco Yantian with Cosco for a period of 6 to 8
months, starting from February 27, 2018, at a daily rate of
$16,000.
- Agreed to extend the charter of the 2006-built, 9,469 TEU
containership Cosco Beijing with Cosco for a period of 4 to 6
months, starting from April 9, 2018, at a daily rate of
$16,000.
- Agreed to extend the charter of the 2006-built, 9,469 TEU
containership Cosco Hellas with Cosco for a period of 4 to 6
months, starting from May 7, 2018, at a daily rate of $16,000.
- Agreed to charter the 2001-built, 5,576 TEU containership
Ensenada with Sea Consortium, until January 18, 2018 at a daily
rate of $11,600 and subsequently extended this charter for a
further period of 39 to 90 days at the same rate.
- Agreed to charter the 1997-built, 7,403 TEU containership
Niledutch Panther (ex. Kokura) with NileDutch for a period of 9 to
12 months, starting from February 2, 2018, at a daily rate of
$12,750.
- Agreed to extend the charter of the 1996-built, 7,403 TEU
containership Maersk Kure with Maersk for a period of 45 to 90
days, starting from December 18, 2017, at a daily rate of
$12,500.
- Agreed to extend the charter of the 1997-built, 7,403 TEU
containership Maersk Kawasaki with Maersk for a period of 45 to 90
days, starting from December 12, 2017, at a daily rate of
$12,500.
- Agreed to extend the charter of the 2004-built, 2,586 TEU
containership Lakonia with Evergreen for a period of 4 to 8 months,
starting from December 4, 2017, at a daily rate of $8,500.
- Agreed to extend the charter of the 2000-built, 1,645 TEU
containership Neapolis with Evergreen, for a period of 3 to 8
months in charterers’ option, starting from February 25, 2018, at a
daily rate of $8,300.
- Agreed to charter the 2002-built, 4,132 TEU containership Ulsan
with Maersk for a period starting from February 4, 2018 and
expiring at the charterers’ option during the period from April 15,
2018 to August 30, 2018, at a daily rate of $7,600.
- Agreed to charter the 2001-built, 1,078 TEU containership
Luebeck with MSC for a period of 12 to 14 months, starting from
January 19, 2018, at a daily rate of $6,500.
- Agreed to extend the charter of the 1994-built, 1,162 TEU
containership Petalidi with CMA-CGM for a period starting from
December 20, 2017 and expiring at the charterers’ option during the
period from May 20, 2018 to June 30, 2018, at a daily rate of
$6,550.
D. Dividend announcements
- On January 2, 2018, we declared a dividend for the fourth
quarter ended December 31, 2017, of $0.10 per share on our common
stock, payable on February 6, 2018, to stockholders of record as of
January 23, 2018.
- On January 2, 2018, 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 $0.546875
per share on our Series D Preferred Stock, which were all paid on
January 16, 2018 to holders of record as of January 12, 2018.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“2018 started with a positive momentum across
the board. So far larger vessels have captured most of the upswing
and hopefully this will give a further boost to the smaller sizes
as well.
During the last quarter of the year the Company
delivered profitable results.
On January 23rd we accepted delivery of the c/v
Polar Argentina, which is the first of the two 3,800 TEU new
buildings ordered together with our partners York Capital. Upon
delivery the vessel commenced its seven-year time charter to
Hamburg Süd. The acquisition has been financed with cash from
operations and debt provided by a leading Asian financial
institution.
In November we acquired the 2005 built, 2,500
TEU c/v CMA CGM L'Etoile. The acquisition was 100% financed with
cash from operations.
On the chartering side, we chartered in total 16
ships since last quarter and today we have no ships laid up.
Finally, on the dividends, we declared our
consecutive 29th dividend since going public. Insiders have
decided, as has been the case since June 2016, to reinvest in full
their cash dividends in new shares.”
Financial
Summary
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Year ended December 31, |
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Three-month period ended December
31, |
(Expressed in thousands
of U.S. dollars, except share and per share data): |
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2016 |
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2017 |
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2016 |
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2017 |
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Voyage
revenue |
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$ 468,189 |
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$ 412,433 |
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$110,134 |
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$ 100,618 |
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Accrued charter revenue
(1) |
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$ (7,730) |
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$ (11,204) |
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$ (2,836) |
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$ (2,752) |
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Voyage revenue adjusted
on a cash basis (2) |
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$ 460,459 |
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$ 401,229 |
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$ 107,298 |
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$ 97,866 |
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Adjusted Net Income
available to common stockholders (3) |
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$ 115,120 |
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$ 76,933 |
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$23,039 |
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$ 18,408 |
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Weighted Average number
of shares |
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77,243,252 |
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100,527,907 |
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81,498,030 |
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107,661,705 |
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Adjusted Earnings per
share (3) |
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$ 1.49 |
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$ 0.77 |
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$ 0.28 |
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$ 0.17 |
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Net Income /
(Loss) |
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$ 81,702 |
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$ 72,876 |
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$ (11,008) |
|
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$ 2,670 |
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Net Income / (Loss)
available to common stockholders |
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$ 60,639 |
|
|
$ 51,813 |
|
|
$ (16,274) |
|
|
$ (2,596) |
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Weighted Average number
of shares |
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77,243,252 |
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100,527,907 |
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81,498,030 |
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107,661,705 |
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Earnings / (Losses) per
share |
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$0.79 |
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|
$ 0.52 |
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$ (0.20) |
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|
$ (0.02) |
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(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 months and the years ended
December 31, 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
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Year ended December 31, |
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Three-month period ended December
31, |
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(Expressed in thousands
of U.S. dollars, except share and per share data) |
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2016 |
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2017 |
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2016 |
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2017 |
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Net
Income / (Loss) |
$ |
81,702 |
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$ |
72,876 |
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$ |
(11,008) |
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$ |
2,670 |
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Earnings allocated to
Preferred Stock |
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(21,063) |
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(21,063) |
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(5,266) |
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|
(5,266) |
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Net Income /
(Loss) available to common stockholders |
|
60,639 |
|
|
51,813 |
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(16,274) |
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(2,596) |
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Accrued charter
revenue |
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(7,730) |
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(11,204) |
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(2,836) |
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(2,752) |
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Non-cash general and
administrative expenses and non-cash other items |
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8,951 |
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3,866 |
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4,837 |
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|
864 |
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Amortization of prepaid
lease rentals, net |
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6,779 |
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8,429 |
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2,200 |
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|
2,054 |
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Realized Gain on
Euro/USD forward contracts (1) |
|
(898) |
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(765) |
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- |
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(83) |
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Loss on sale /
disposals of vessels (1) |
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4,440 |
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4,856 |
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- |
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- |
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Loss on asset held for
sale |
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37,161 |
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2,379 |
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37,161 |
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2,379 |
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Vessels’ impairment
loss |
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- |
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17,959 |
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- |
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17,959 |
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Vessel impairment loss
by a jointly owned company with York included in equity (gain)/loss
on investments |
|
- |
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896 |
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- |
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|
896 |
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Non-recurring, non-cash
write-off of loan deferred financing costs |
|
586 |
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- |
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- |
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- |
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Swap breakage cost |
|
9,701 |
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- |
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|
297 |
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- |
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Gain on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
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(4,509) |
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(1,296) |
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(2,346) |
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(313) |
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Adjusted Net
Income available to common stockholders |
$ |
115,120 |
|
$ |
76,933 |
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$ |
23,039 |
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$ |
18,408 |
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Adjusted
Earnings per Share |
$ |
1.49 |
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$ |
0.77 |
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$ |
0.28 |
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$ |
0.17 |
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Weighted average number
of shares |
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77,243,252 |
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100,527,907 |
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81,498,030 |
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107,661,705 |
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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, loss on
sale / disposal of vessels, loss on asset held for sale, vessels’
impairment loss, vessel impairment loss by a jointly owned company
with York included in equity (gain)/loss on investments,
non-recurring, non-cash write-off of loan deferred financing costs,
swap breakage cost, non-cash general and administrative expenses
and non-cash other items, 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 December 31,
2017 compared to the three-month period ended December 31,
2016
During the three-month periods ended December
31, 2017 and 2016, we had an average of 52.6 and 53.0 vessels,
respectively, in our fleet. In the three-month period ended
December 31, 2017, we took delivery of the 2005-built, 2,556 TEU
secondhand containership CMA CGM L’Etoile. In the three-month
periods ended December 31, 2017 and 2016, our fleet ownership days
totaled 4,843 and 4,876 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, except
percentages) |
|
Three-month period ended December
31, |
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|
Percentage |
|
|
2016 |
|
|
2017 |
|
|
Change |
|
Change |
|
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Voyage revenue |
$ |
110.1 |
|
$ |
100.6 |
|
$ |
(9.5) |
|
|
(8.6 |
%) |
Voyage expenses |
|
(0.4) |
|
|
(0.6) |
|
|
0.2 |
|
|
50.0 |
% |
Voyage expenses –
related parties |
|
(0.8) |
|
|
(0.8) |
|
|
- |
|
|
- |
|
Vessels’ operating
expenses |
|
(26.1) |
|
|
(26.9) |
|
|
0.8 |
|
|
3.1 |
% |
General and
administrative expenses |
|
(1.5) |
|
|
(1.3) |
|
|
(0.2) |
|
|
(13.3 |
%) |
Management fees –
related parties |
|
(4.2) |
|
|
(4.3) |
|
|
0.1 |
|
|
2.4 |
% |
Non-cash general and
administrative expenses and non-cash other items |
|
(4.8) |
|
|
(0.9) |
|
|
(3.9) |
|
|
(81.3 |
%) |
Amortization of
dry-docking and special survey costs |
|
(2.0) |
|
|
(1.8) |
|
|
(0.2) |
|
|
(10.0 |
%) |
Depreciation |
|
(25.2) |
|
|
(23.8) |
|
|
(1.4) |
|
|
(5.6 |
%) |
Vessels’ Impairment
loss |
|
- |
|
|
(18.0) |
|
|
18.0 |
|
|
n.m. |
|
Amortization of prepaid
lease rentals, net |
|
(2.2) |
|
|
(2.1) |
|
|
(0.1) |
|
|
(4.5 |
%) |
Loss on asset held for
sale |
|
(37.2) |
|
|
(2.4) |
|
|
(34.8) |
|
|
(93.5 |
%) |
Interest income |
|
0.5 |
|
|
0.8 |
|
|
0.3 |
|
|
60.0 |
% |
Interest and finance
costs |
|
(17.7) |
|
|
(16.5) |
|
|
(1.2) |
|
|
(6.8 |
%) |
Swap breakage cost |
|
(0.3) |
|
|
- |
|
|
(0.3) |
|
|
(100.0 |
%) |
Equity gain on
investments |
|
0.4 |
|
|
0.9 |
|
|
0.5 |
|
|
125.0 |
% |
Gain / (Loss) on
derivative instruments |
|
0.4 |
|
|
(0.2) |
|
|
0.6 |
|
|
n.m. |
|
Net Income /
(Loss) |
$ |
(11.0) |
|
$ |
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month period ended December
31, |
|
|
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|
Percentage |
|
|
2016 |
|
|
2017 |
|
|
Change |
|
Change |
|
|
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|
|
|
|
|
|
Voyage revenue |
$ |
110.1 |
|
$ |
100.6 |
|
$ |
(9.5) |
|
|
(8.6 |
%) |
Accrued charter
revenue |
|
(2.8) |
|
|
(2.8) |
|
|
- |
|
|
- |
|
Voyage revenue adjusted
on a cash basis |
$ |
107.3 |
|
$ |
97.8 |
|
$ |
(9.5) |
|
|
(8.9 |
%) |
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Vessels’ operational data |
|
Three-month period ended December
31, |
|
|
|
Percentage |
|
|
2016 |
|
2017 |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
Average number of
vessels |
|
53.0 |
|
52.6 |
|
(0.4) |
|
|
(0.8 |
%) |
Ownership days |
|
4,876 |
|
4,843 |
|
(33) |
|
|
(0.7 |
%) |
Number of vessels under
dry-docking |
|
- |
|
3 |
|
3 |
|
|
|
Voyage Revenue
Voyage revenue decreased by 8.6%, or $9.5
million, to $100.6 million during the three-month period ended
December 31, 2017, from $110.1 million during the three-month
period ended December 31, 2016. The decrease is mainly attributable
to decreased charter rates for certain of our vessels and revenue
not earned by four vessels sold for demolition which was partly
offset by revenue earned by four secondhand vessels acquired during
the second and fourth quarters of 2017.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash "Accrued charter revenue"), decreased by 8.9%,
or $9.5 million, to $97.8 million during the three-month period
ended December 31, 2017, from $107.3 million during the three-month
period ended December 31, 2016. Accrued charter revenue for both
three-month periods ended December 31, 2017 and 2016, amounted to
$2.8 million.
Voyage Expenses
Voyage expenses were $0.6 million and $0.4
million for the three-month periods ended December 31, 2017 and
2016, respectively. 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 during each of the three-month periods ended
December 31, 2017 and 2016, 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 $26.9 million and
$26.1 million during the three-month periods ended December 31,
2017 and 2016, respectively.
General and Administrative Expenses
General and administrative expenses were $1.3
million and $1.5 million during the three-month periods ended
December 31, 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 $4.3 million during the three-month
period ended December 31, 2017 and $4.2 million during the
three-month period ended December 31, 2016.
Non-cash general and administrative expenses and non-cash other
items
Non-cash general and administrative expenses and
non-cash other items for the three-month period ended December 31,
2017 amounted to $0.9 million, representing the value of the shares
issued to Costamare Services on December 29, 2017, pursuant to the
Services Agreement. For the three-month period ended December 31,
2016, the respective amount was $4.8 million, including the value
of the shares issued to Costamare Services on December 31, 2016,
pursuant to the Services Agreement.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special
survey costs was $1.8 million and $2.0 million during the
three-month periods ended December 31, 2017 and 2016, respectively.
During the three-month period ended December 31, 2017, three
vessels underwent and completed their special survey. During the
three-month period ended December 31, 2016 no vessel underwent any
special survey.
Depreciation
Depreciation expense decreased by 5.6% or $1.4
million, to $23.8 million during the three-month period ended
December 31, 2017, from $25.2 million during the three-month period
ended December 31, 2016. The decrease was mainly attributable to
depreciation expense not charged during the three -month period
ended December 31, 2017, due to the sale of five vessels during
2016 and the year ended December 31, 2017; partly offset by the
depreciation charged during the three-month period ended December
31, 2017, due to the acquisition of four secondhand
containerships.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net was
$2.1 million during the three-month period ended December 31, 2017.
Amortization of prepaid lease rentals, net was $2.2 million during
the three-month period ended December 31, 2016.
Vessels’ Impairment loss
During the three-month period ended December 31,
2017, we recorded an impairment loss in relation to seven of our
vessels in the amount of $18.0 million, in the aggregate.
Loss on asset held for sale
During the three-month period ended December 31,
2017, we recorded a loss on asset held for sale of $2.4 million,
representing the expected loss from sale of one of our vessels
during the next twelve month period. During the three-month period
ended December 31, 2016, we recorded a loss on asset held for sale
of $37.2 million, representing the expected loss from sale for
demolition of one of our vessels, which was sold in January
2017.
Interest Income
Interest income amounted to $0.8 million and
$0.5 million for the three-month periods ended December 31, 2017
and 2016, respectively.
Interest and Finance Costs
Interest and finance costs decreased by 6.8%, or
$1.2 million, to $16.5 million during the three-month period ended
December 31, 2017, from $17.7 million during the three-month period
ended December 31, 2016. The decrease is partly attributable to the
decreased average loan balance during the three-month period ended
December 31, 2017 compared to the three-month period ended December
31, 2016.
Swaps Breakage Cost
During the three-month period ended December 31,
2016, we terminated one interest rate derivative instrument that
did not qualify for hedge accounting and we paid the counterparty
breakage costs of $0.3 million.
Equity Gain on Investments
During the three-month period ended December 31,
2017, we recorded an equity gain on investments of $0.9 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
December 31, 2016, we recorded an equity gain on investments of
$0.4 million.
Gain / (Loss) on Derivative Instruments
The fair value of our 17 interest rate
derivative instruments which were outstanding as of December 31,
2017 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of December 31, 2017, the fair
value of these 17 interest rate derivative instruments in aggregate
amounted to a net asset of $1.1 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 December 31,
2017, a net gain of $5.0 million has been included in OCI and a net
loss of $0.2 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,
2017.
Cash FlowsThree-month periods ended
December 31, 2017 and 2016
Condensed cash
flows |
|
Three-month period ended December
31, |
(Expressed in millions
of U.S. dollars) |
|
2016 |
|
2017 |
Net Cash Provided by
Operating Activities |
|
$ 57.0 |
|
$ 43.9 |
Net Cash Used in
Investing Activities |
|
$ (3.2) |
|
$ (7.3) |
Net Cash Provided by /
(Used in) Financing Activities |
|
$ 4.4 |
|
$ (50.1) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended December 31, 2017, decreased by
$13.1 million to $43.9 million, compared to $57.0 million for the
three-month period ended December 31, 2016. The decrease is mainly
attributable to the decreased cash from operations of $9.4 million,
the unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $3.2 million
and the increased special survey costs during the three month
period ended December 31, 2017 compared to the three-month period
ended December 31, 2016; partly off-set by decreased payments for
interest (including swap payments) during the period of $1.5
million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $7.3
million in the three-month period ended December 31, 2017, which
consisted of payment for the acquisition of one secondhand vessel
and payments for working capital injected into certain
entities pursuant to the Framework Deed (net of dividend
distributions we received).
Net cash used in investing activities was $3.2
million in the three-month period ended December 31, 2016, which
mainly consisted of $3.5 million in payments for working capital
injection in certain entities pursuant to the Framework Deed and
$0.3 million we received as dividend distributions in certain
entities pursuant to the Framework Deed.
Net Cash Provided by / (Used in) Financing
Activities
Net cash used in financing activities was $50.1
million in the three-month period ended December 31, 2017, which
mainly consisted of (a) $41.4 million net payments relating to our
credit facilities and to our sale and leaseback transactions, (b)
$4.6 million we paid for dividends to holders of our common stock
for the third 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 July 15,
2017 to October 14, 2017.
Net cash provided by financing activities was
$4.4 million in the three-month period ended December 31, 2016,
which mainly consisted of (a) $45.4 million of indebtedness that we
repaid, (b) $7.3 million we repaid relating to our sale and
leaseback agreements, (c) $37.5 million we paid for the prepayment
of one of our credit facilities, (d) $32.0 million that we drew
down from one of our credit facilities, (e) $69.0 million we
received from our follow-on offering in December 2016, net of
underwriting discounts and expenses incurred in the offering, (f)
$2.6 million we paid for dividends to holders of our common stock
for the third 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 July 15, 2016 to October 14,
2016.
Year ended December 31, 2017 compared to
the year ended December 31, 2016
During the years ended December 31, 2017 and
2016, we had an average of 52.7 and 53.6 vessels, respectively, in
our fleet. In the year ended December 31, 2017, we accepted
delivery of the secondhand containerships Leonidio, Kyparissia,
Maersk Kowloon and CMA CGM L’Etoile with an aggregate capacity of
19,941 TEU and we sold the container vessels Romanos, Marina,
Mandraki and Mykonos with an aggregate capacity of 18,057 TEU. In
the year ended December 31, 2016, we sold the 3,351 TEU vessel
Karmen. In the years ended December 31, 2017 and 2016, our fleet
ownership days totaled 19,221 and 19,616 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, except
percentages) |
|
Year ended December 31, |
|
|
|
|
Percentage |
|
|
2016 |
|
|
2017 |
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
468.2 |
|
$ |
412.4 |
|
$ |
(55.8) |
|
|
(11.9 |
%) |
Voyage expenses |
|
(1.9) |
|
|
(2.6) |
|
|
0.7 |
|
|
36.8 |
% |
Voyage expenses –
related parties |
|
(3.5) |
|
|
(3.1) |
|
|
(0.4) |
|
|
(11.4 |
%) |
Vessels’ operating
expenses |
|
(105.8) |
|
|
(103.8) |
|
|
(2.0) |
|
|
(1.9 |
%) |
General and
administrative expenses |
|
(5.8) |
|
|
(5.7) |
|
|
(0.1) |
|
|
(1.7 |
%) |
Management fees –
related parties |
|
(18.6) |
|
|
(18.7) |
|
|
0.1 |
|
|
0.5 |
% |
Non-cash general and
administrative expenses and non-cash other items |
|
(9.0) |
|
|
(3.9) |
|
|
(5.1) |
|
|
(56.7 |
%) |
Amortization of
dry-docking and special survey costs |
|
(7.9) |
|
|
(7.6) |
|
|
(0.3) |
|
|
(3.8 |
%) |
Depreciation |
|
(100.9) |
|
|
(96.4) |
|
|
(4.5) |
|
|
(4.5 |
%) |
Amortization of prepaid
lease rentals, net |
|
(6.8) |
|
|
(8.4) |
|
|
1.6 |
|
|
23.5 |
% |
Loss on sale / disposal
of vessels |
|
(4.4) |
|
|
(4.9) |
|
|
0.5 |
|
|
11.4 |
% |
Vessels’ Impairment
loss |
|
- |
|
|
(18.0) |
|
|
18.0 |
|
|
n.m. |
|
Loss on asset held for
sale |
|
(37.2) |
|
|
(2.4) |
|
|
(34.8) |
|
|
(93.5 |
%) |
Foreign exchange
losses |
|
(0.4) |
|
|
- |
|
|
(0.4) |
|
|
(100.0 |
%) |
Interest income |
|
1.7 |
|
|
2.7 |
|
|
1.0 |
|
|
58.8 |
% |
Interest and finance
costs |
|
(72.8) |
|
|
(69.8) |
|
|
(3.0) |
|
|
(4.1 |
)% |
Swaps breakage
cost |
|
(9.7) |
|
|
- |
|
|
(9.7) |
|
|
(100.0 |
%) |
Equity gain / (loss) on
investments |
|
(0.1) |
|
|
3.4 |
|
|
3.5 |
|
|
n.m. |
|
Other |
|
0.6 |
|
|
0.6 |
|
|
- |
|
|
- |
|
Loss on derivative
instruments |
|
|
(4.0) |
|
|
(0.9) |
|
|
(3.1) |
|
|
(77.5 |
%) |
Net
Income |
|
$ |
81.7 |
|
$ |
72.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
|
Year ended December 31, |
|
|
|
|
Percentage |
|
|
|
2016 |
|
|
2017 |
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
|
$ |
468.2 |
|
$ |
412.4 |
|
$ |
(55.8) |
|
|
(11.9 |
%) |
Accrued charter
revenue |
|
|
(7.7) |
|
|
(11.2) |
|
|
3.5 |
|
|
45.5 |
% |
Voyage revenue adjusted
on a cash basis |
|
$ |
460.5 |
|
$ |
401.2 |
|
$ |
(59.3) |
|
|
(12.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Year ended December 31, |
|
|
|
Percentage |
|
|
2016 |
|
2017 |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
Average number of
vessels |
|
53.6 |
|
52.7 |
|
(0.9) |
|
|
(1.7 |
%) |
Ownership days |
|
19,616 |
|
19,221 |
|
(395) |
|
|
(2.0 |
%) |
Number of vessels under
dry-docking |
|
6 |
|
7 |
|
1 |
|
|
|
Voyage Revenue
Voyage revenue decreased by 11.9%, or $55.8
million, to $412.4 million during the year ended December 31, 2017,
from $468.2 million during the year ended December 31, 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 year ended December 31, 2017) and (iii) revenue
not earned due to decreased calendar days by one day during the
year ended December 31, 2017 (365 calendar days) compared to the
year ended December 31, 2016 (366 calendar days); partly offset by
revenue earned by four secondhand vessels acquired during the
second and fourth quarter of 2017.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash "Accrued charter revenue"), decreased by 12.9%,
or $59.3 million, to $401.2 million during the year ended December
31, 2017, from $460.5 million during the year ended December 31,
2016. Accrued charter revenue for the years ended December 31, 2017
and 2016, amounted to $11.2 million and $7.7 million
respectively.
Voyage Expenses
Voyage expenses were $2.6 million and $1.9
million, during the years ended December 31, 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 $3.1 million and $3.5 million during the years ended December
31, 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 1.9%, or
$2.0 million, to $103.8 million during the year ended December 31,
2017, from $105.8 million during the year ended December 31,
2016.
General and Administrative Expenses
General and administrative expenses were $5.7
million and $5.8 million during the years ended December 31, 2017
and 2016, respectively and both include $2.5 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 $18.7 million and $18.6 million during
the years ended December 31, 2017 and 2016, respectively.
Non-cash general and administrative expenses and non-cash other
items
Non-cash general and administrative expenses and
non-cash other items for the year ended December 31, 2017 amounted
to $3.9 million, representing the value of the shares issued to
Costamare Services on March 30, 2017, June 30, 2017, September 29,
2017 and December 29, 2017, pursuant to the Services Agreement. For
the year ended December 31, 2016, the non-cash general and
administrative expenses and non-cash other items amounted to $9.0
million, including the value of the shares issued to Costamare
Services on March 31, 2016, June 30, 2016, September 30, 2016 and
December 31, 2016, pursuant to the Services Agreement.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special
survey costs was $7.6 million and $7.9 million during the years
ended December 31, 2017 and 2016, respectively. During the year
ended December 31, 2017, seven vessels underwent and completed
their special survey. During the year ended December 31, 2016 six
vessels underwent and completed their special survey.
Depreciation
Depreciation expense decreased by 4.5% or $4.5
million, to $96.4 million during the year ended December 31, 2017,
from $100.9 million during the year ended December 31, 2016. The
decrease was mainly attributable to depreciation expense not
charged during the year ended December 31, 2017, due to the sale of
five vessels during the period spanning from the third quarter of
2016 to the year ended December 31, 2017; partly offset by the
depreciation charged on the four secondhand containerships acquired
during the second and fourth quarter of 2017.
Amortization of Prepaid Lease Rentals, net
Amortization of prepaid lease rentals, net was
$8.4 million during the year ended December 31, 2017. Amortization
of prepaid lease rentals, net was $6.8 million during the year
ended December 31, 2016.
Loss on sale / disposal of vessels
During the year ended December 31, 2017, we
recorded an aggregate net loss of $4.3 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 year ended
December 31, 2016, we recorded a loss of $4.4 million from the sale
of the vessel Karmen.
Vessels’ Impairment loss
During the year ended December 31, 2017, we
recorded an impairment loss in relation to seven of our vessels in
the amount of $18.0 million, in the aggregate.
Loss on asset held for sale
During the year ended December 31, 2017, we
recorded a loss on asset held for sale of $2.4 million,
representing the expected loss from sale of one of our vessels
during the next twelve months period. During the year ended
December 31, 2016, we recorded a loss on asset held for sale of
$37.2 million, representing the expected loss from sale for scrap
of one of our vessels, which we sold in January 2017.
Foreign Exchange Losses
Foreign exchange losses were nil and $0.4
million during the years ended December 31, 2017 and 2016,
respectively.
Interest Income
Interest income amounted to $2.7 million and
$1.7 million for the years ended December 31, 2017 and 2016,
respectively.
Interest and Finance Costs
Interest and finance costs decreased by 4.1%, or
$3.0 million, to $69.8 million during the year ended December 31,
2017, from $72.8 million during the year ended December 31, 2016.
The decrease is partly attributable to the decreased average loan
balance during the year ended December 31, 2017 compared to the
year ended December 31, 2016.
Swaps Breakage Cost
During the year ended December 31, 2016, we
terminated two interest rate derivative instruments and we paid the
counterparties breakage costs of $9.7 million in aggregate.
Equity Gain / (Loss) on Investments
During the year ended December 31, 2017 we
recorded an equity gain on investments of $3.4 million representing
our share of the net gain of 18 jointly owned companies pursuant to
the Framework Deed. During the year ended December 31, 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 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 December 31,
2017 equates to the amount that would be paid by us or to us should
those instruments be terminated. As of December 31, 2017, the fair
value of these 17 interest rate derivative instruments in aggregate
amounted to a net asset of $1.1 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 year ended December 31, 2017, a net gain of $13.5 million has
been included in OCI and a net loss of $1.1 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, 2017.
Cash FlowsYears ended December 31, 2017
and 2016
Condensed cash
flows |
|
Year ended December 31, |
(Expressed in millions
of U.S. dollars) |
|
2016 |
|
2017 |
Net Cash Provided by
Operating Activities |
|
$ 226.6 |
|
$ 191.0 |
Net Cash Used in
Investing Activities |
|
$ (34.4) |
|
$ (42.7) |
Net Cash Used in
Financing Activities |
|
$ (127.4) |
|
$ (134.2) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the year ended December 31, 2017, decreased by $35.6 million to
$191.0 million, compared to $226.6 million for the year ended
December 31, 2016. The decrease is mainly attributable to the
decreased cash from operations of $59.2 million; partly off-set by
decreased payments for interest (including swap payments) during
the year of $10.0 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 year and revenue recognized on a straight-line
basis) of $1.8 million and the decreased special survey costs of
$0.3 million during the year ended December 31, 2017 compared to
the year ended December 31, 2016. Net Cash Used
in Investing Activities
Net cash used in investing activities was $42.7
million in the year ended December 31, 2017, which consisted of
payments for the acquisition of four 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 $34.4
million in the year ended December 31, 2016, which mainly consisted
of (i) $38.6 million in advance payments for the construction of
eight 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, (iii) $3.6 million proceeds we received from the
sale of one vessel, and (iv) $3.4 million we received as dividend
distributions pursuant to the Framework Deed.
Net Cash Used in Financing Activities
Net cash used in financing activities was $134.2
million in the year ended December 31, 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) $192.2 million net payments relating to our credit
facilities and to our sale and leaseback transactions, (c) $16.5
million we paid for dividends to holders of our common stock for
the fourth quarter of 2016, the first quarter, the second quarter
and the third quarter of 2017 and (d) $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
and $8.8 million we paid for dividends to holders of our Series D
Preferred Stock, in each case for each of the periods from October
15, 2016 to January 14, 2017, January 15, 2017 to April 14, 2017,
April 15, 2017 to July 14, 2017 and July 15, 2017 to October 14,
2017.
Net cash used in financing activities was $127.4
million in the year ended December 31, 2016, which mainly consisted
of (a) $187.5 million of indebtedness that we repaid, (b) $21.6
million we repaid relating to our sale and leaseback agreements,
(c) $71.0 million in aggregate that we drew down from two of our
credit facilities, (d) $148.3 million we paid for the prepayment of
three 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) $53.9 million we paid for dividends to
holders of our common stock for the fourth quarter of 2015, the
first, the second quarter and the third quarter of 2016, (g) $69.0
million we received from our follow-on offering in December 2016,
net of underwriting discounts and expenses incurred in the offering
and (h) $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 and $8.8 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, April 15, 2016 to July 14, 2016 and
July 15, 2016 to October 14, 2016.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of December 31, 2017, we had a total cash
liquidity of $218.9 million, consisting of cash, cash equivalents
and restricted cash.
Debt-free vessels
As of January 23, 2018, the following vessels were free of
debt.
Unencumbered Vessels (Refer
to fleet list for full details)
Vessel Name |
|
Year Built |
|
TEU Capacity |
CMA CGM L’ETOILE |
|
2005 |
|
2,556 |
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 January 23, 2018, we had outstanding
equity commitments relating to one contracted newbuild of
approximately $1.07 million payable until the vessel is delivered,
which is expected to be in the second quarter of 2018. The amount
represents our interest in the relevant jointly-owned entity under
the Framework Deed.
Conference Call details:
On Wednesday, January 24, 2018 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 January 31,
2018. 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: 10116188.
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
44 years of history in the international shipping industry and a
fleet of 71 containerships, with a total capacity of approximately
466,000 TEU, including one newbuild containership to be delivered.
Eighteen of our containerships, including one newbuild 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 40 Email:
ir@costamare.com
Fleet List
The tables below provide additional information,
as of January 23, 2018, 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(1)
(U.S. dollars) |
Expiration of Charter(2) |
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) |
OOCL |
2017 |
11,010 |
28,250(3) |
March 2019 |
8 |
CAPE KORTIA(i) |
Evergreen |
2017 |
11,010 |
(**) |
September 2018 |
9 |
CAPE SOUNIO(i) |
(*) |
2017 |
11,010 |
(*) |
(*) |
10 |
CAPE ARTEMISIO(i) |
Hapag Lloyd |
2017 |
11,010 |
27,000 (net)(4) |
May 2019 |
11 |
COSCO GUANGZHOU |
COSCO |
2006 |
9,469 |
16,000 |
July 2018(5) |
12 |
COSCO NINGBO |
COSCO |
2006 |
9,469 |
16,000 |
July 2018 |
13 |
COSCO YANTIAN |
COSCO |
2006 |
9,469 |
16,000 |
August 2018(6) |
14 |
COSCO BEIJING |
COSCO |
2006 |
9,469 |
16,000 |
August 2018(7) |
15 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
16,000 |
September 2018(8) |
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(9) |
22 |
VALUE |
Evergreen |
2013 |
8,827 |
41,700 |
April 2020(9) |
23 |
VALIANT |
Evergreen |
2013 |
8,827 |
41,700 |
June 2020(9) |
24 |
VALENCE |
Evergreen |
2013 |
8,827 |
41,700 |
July 2020(9) |
25 |
VANTAGE |
Evergreen |
2013 |
8,827 |
41,700 |
September 2020(9) |
26 |
NAVARINO |
PIL |
2010 |
8,531 |
9,000 |
February 2018 |
27 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
28 |
MAERSK KAWASAKI |
Maersk |
1997 |
7,403 |
12,500 |
February 2018 |
29 |
MAERSK KURE |
Maersk |
1996 |
7,403 |
12,500 |
February 2018 |
30 |
NILEDUTCH PANTHER (ex. KOKURA) |
NileDutch |
1997 |
7,403 |
12,750(10) |
November 2018 |
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 |
February 2018 |
41 |
ENSENADA (i) |
Sea Consortium |
2001 |
5,576 |
11,600 |
February 2018 |
42 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
8,401 |
September 2018(11) |
43 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
8,401 |
September 2018(11) |
44 |
PIRAEUS |
(*) |
2004 |
4,992 |
(*) |
February 2018 |
45 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024 |
46 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024 |
47 |
OAKLAND EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800 |
February 2019 |
48 |
HALIFAX EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800 |
February 2019 |
49 |
SINGAPORE EXPRESS |
Hapag Lloyd |
2000 |
4,890 |
8,800 |
February 2019 |
50 |
ULSAN |
Maersk |
2002 |
4,132 |
7,600(12) |
April 2018 |
51 |
MSC KORONI |
MSC |
1998 |
3,842 |
13,500 |
September 2018 |
52 |
ITEA |
ACL |
1998 |
3,842 |
8,000 |
February 2018 |
53 |
POLAR ARGENTINA(i)(ii) |
Hamburg Süd |
2018 |
3,800 |
19,700 |
October 2024 |
54 |
LAKONIA |
Evergreen |
2004 |
2,586 |
8,500 |
April 2018 |
55 |
CMA CGM L’ETOILE |
CMA CGM |
2005 |
2,556 |
10,250 |
March 2018 |
56 |
ELAFONISOS(i) |
MSC |
1999 |
2,526 |
6,200 |
February 2018 |
57 |
AREOPOLIS |
Evergreen |
2000 |
2,474 |
8,300 |
February 2018 |
58 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
59 |
MESSINI |
Evergreen |
1997 |
2,458 |
8,300 |
March 2018 |
60 |
MSC REUNION |
MSC |
1992 |
2,024 |
6,800 |
July 2018 |
61 |
MSC NAMIBIA II |
MSC |
1991 |
2,023 |
6,800 |
July 2018 |
62 |
MSC SIERRA II |
MSC |
1991 |
2,023 |
6,800 |
June 2018 |
63 |
MSC PYLOS |
MSC |
1991 |
2,020 |
6,000 |
February 2018 |
64 |
PADMA(i) |
Evergreen |
1998 |
1,645 |
6,800 |
February 2018 |
65 |
NEAPOLIS |
Evergreen |
2000 |
1,645 |
8,300 |
May 2018(13) |
66 |
ARKADIA(i) |
Evergreen |
2001 |
1,550 |
7,800 |
February 2018 |
67 |
PROSPER |
Sea Consortium |
1996 |
1,504 |
7,500 |
February 2018 |
68 |
ZAGORA |
MSC |
1995 |
1,162 |
6,500 |
May 2018 |
69 |
PETALIDI(i) |
CMA CGM |
1994 |
1,162 |
6,550 |
May 2018 |
70 |
LUEBECK |
MSC |
2001 |
1,078 |
6,500 |
January 2019 |
Newbuilds
|
Vessel Name |
Shipyard |
Capacity (TEU) |
Charterer |
Expected Delivery(14) |
1 |
YZJ1207
(i) (ii) |
Jiangsu New Yangzi |
3,800 |
Hamburg Süd |
Q2 2018 |
(1) Daily charter rates are gross, unless stated otherwise.
(2) 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.
(3) This charter rate will start on April 1, 2018.
(4) This charter rate will start on June 12, 2018.
(5) This charter rate will start on March 18, 2018. Vessel
presently under Drydock for upgrade.
(6) This charter rate will start on February 27, 2018.
Until then charter rate will be $36,400 per day.
(7) This charter rate will start on April 9, 2018. Until
then charter rate will be $36,400 per day.
(8) This charter rate will start on May 7, 2018. Until then
charter rate will be $37,519 per day.
(9) 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.
(10) This charter rate will start on February 2, 2018.
(11) 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.
(12) This charter rate will start on February 4, 2018.
Until January 27, 2017 vessel is chartered to ZIM with charter rate
being $7,600 per day.
(13) This charter rate will start on February 25, 2018.
Until then the charter rate will be $6,900 per day.
(14) Based on latest shipyard production 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.(**) Vessel’s daily charter rate is in the
mid-twenty thousands of dollars.
COSTAMARE
INC.Consolidated Statements of Income
|
|
Year ended December 31, |
|
Three-months
ended December
31, |
(Expressed in thousands
of U.S. dollars, except share and per share amounts) |
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
468,189 |
|
$ |
412,433 |
|
$ |
110,134 |
|
$ |
100,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(1,887) |
|
|
(2,649) |
|
|
(431) |
|
|
(624) |
|
Voyage expenses –
related parties |
|
(3,512) |
|
|
(3,093) |
|
|
(826) |
|
|
(754) |
|
Vessels' operating
expenses |
|
(105,783) |
|
|
(103,799) |
|
|
(26,135) |
|
|
(26,924) |
|
General and
administrative expenses |
|
(5,769) |
|
|
(5,651) |
|
|
(1,458) |
|
|
(1,330) |
|
Management fees -
related parties |
|
(18,629) |
|
|
(18,693) |
|
|
(4,188) |
|
|
(4,338) |
|
Non-cash general and
administrative expenses and non-cash other items |
|
(8,951) |
|
|
(3,866) |
|
|
(4,837) |
|
|
(864) |
|
Amortization of
dry-docking and special survey costs |
|
(7,920) |
|
|
(7,627) |
|
|
(1,983) |
|
|
(1,847) |
|
Depreciation |
|
(100,943) |
|
|
(96,448) |
|
|
(25,157) |
|
|
(23,771) |
|
Amortization of prepaid
lease rentals, net |
|
(6,779) |
|
|
(8,429) |
|
|
(2,200) |
|
|
(2,054) |
|
Loss on sale / disposal
of vessels |
|
(4,440) |
|
|
(4,856) |
|
|
- |
|
|
- |
|
Loss on asset held for
sale |
|
(37,161) |
|
|
(2,379) |
|
|
(37,161) |
|
|
(2,379) |
|
Vessels’ impairment
loss |
|
- |
|
|
(17,959) |
|
|
- |
|
|
(17,959) |
|
Foreign exchange gains
/ (losses) |
|
(360) |
|
|
31 |
|
|
(26) |
|
|
(1) |
|
Operating
income |
$ |
166,055 |
|
$ |
137,015 |
|
$ |
5,732 |
|
$ |
17,773 |
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
Interest income |
$ |
1,630 |
|
$ |
2,643 |
|
$ |
490 |
|
$ |
774 |
|
Interest and finance
costs |
|
(72,808) |
|
|
(69,840) |
|
|
(17,718) |
|
|
(16,540) |
|
Swap breakage cost |
|
(9,701) |
|
|
- |
|
|
(297) |
|
|
- |
|
Equity gain / (loss) on
investments |
|
(78) |
|
|
3,381 |
|
|
382 |
|
|
849 |
|
Other |
|
595 |
|
|
593 |
|
|
44 |
|
|
48 |
|
Gain/ (Loss) on
derivative instruments |
|
(3,991) |
|
|
(916) |
|
|
359 |
|
|
(234) |
|
Total
other income /
(expenses) |
$ |
(84,353) |
|
$ |
(64,139) |
|
$ |
(16,740) |
|
$ |
(15,103) |
|
Net
Income / (Loss) |
$ |
81,702 |
|
$ |
72,876 |
|
$ |
(11,008) |
|
$ |
2,670 |
|
Earnings allocated to
Preferred Stock |
|
(21,063) |
|
|
(21,063) |
|
|
(5,266) |
|
|
(5,266) |
|
Net Income /
(Loss) available to common stockholders |
$ |
60,639 |
|
$ |
51,813 |
|
$ |
(16,274) |
|
$ |
(2,596) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (Losses) per
common share, basic and diluted |
$ |
0.79 |
|
$ |
0.52 |
|
$ |
(0.20) |
|
$ |
(0.02) |
|
Weighted average number
of shares, basic and diluted |
|
77,243,252 |
|
|
100,527,907 |
|
|
81,498,030 |
|
|
107,661,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTAMARE
INC.Consolidated Balance Sheets
|
|
As of December 31, |
|
As of December
31, |
(Expressed in thousands
of U.S. dollars) |
|
2016 |
|
2017 |
ASSETS |
|
|
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash
equivalents |
$ |
164,898 |
$ |
178,986 |
Restricted cash |
|
6,882 |
|
7,238 |
Accounts
receivable |
|
971 |
|
1,324 |
Inventories |
|
11,415 |
|
9,662 |
Due from related
parties |
|
3,447 |
|
5,273 |
Fair value of
derivatives |
|
- |
|
112 |
Insurance claims
receivable |
|
2,886 |
|
2,091 |
Prepaid lease
rentals |
|
8,752 |
|
8,752 |
Asset held for
sale |
|
6,256 |
|
7,315 |
Accrued charter
revenue |
|
408 |
|
185 |
Prepayments and
other |
|
3,914 |
|
5,697 |
Total current
assets |
$ |
209,829 |
$ |
226,635 |
FIXED ASSETS,
NET: |
|
|
|
|
Capital leased
assets |
$ |
384,872 |
$ |
415,665 |
Vessels, net |
|
1,688,285 |
|
1,579,509 |
Total fixed
assets, net |
$ |
2,073,157 |
$ |
1,995,174 |
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method
investments |
$ |
153,126 |
$ |
161,897 |
Prepaid lease rentals,
non-current |
|
51,670 |
|
42,918 |
Deferred charges,
net |
|
20,367 |
|
15,429 |
Accounts receivable,
non-current |
|
1,575 |
|
1,800 |
Restricted cash |
|
38,783 |
|
32,661 |
Fair value of
derivatives, non-current |
|
762 |
|
4,358 |
Accrued charter
revenue |
|
185 |
|
- |
Other non-current
assets |
|
8,970 |
|
9,426 |
Total
assets |
$ |
2,558,424 |
$ |
2,490,298 |
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of
long-term debt |
$ |
198,277 |
$ |
206,318 |
Accounts payable |
|
3,848 |
|
6,314 |
Due to related
parties |
|
191 |
|
203 |
Capital lease
obligations |
|
29,059 |
|
32,874 |
Accrued
liabilities |
|
11,109 |
|
10,755 |
Unearned revenue |
|
19,668 |
|
15,310 |
Fair value of
derivatives |
|
16,161 |
|
3,307 |
Other current
liabilities |
|
1,673 |
|
1,627 |
Total current
liabilities |
$ |
279,986 |
$ |
276,708 |
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of
current portion |
$ |
856,330 |
$ |
644,662 |
Capital lease
obligations, net of current portion |
|
331,196 |
|
339,332 |
Unearned revenue, net
of current portion |
|
16,488 |
|
11,057 |
Total
non-current liabilities |
$ |
1,204,014 |
$ |
995,051 |
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
$ |
- |
Common stock |
|
9 |
|
11 |
Additional paid-in
capital |
|
1,057,423 |
|
1,175,774 |
Retained earnings |
|
31,416 |
|
43,723 |
Accumulated other
comprehensive loss |
|
(14,424) |
|
(969) |
Total
stockholders’ equity |
$ |
1,074,424 |
$ |
1,218,539 |
Total
liabilities and stockholders’ equity |
$ |
2,558,424 |
$ |
2,490,298 |
|
|
|
|
|
Costamare (NYSE:CMRE)
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