Costamare Inc. Reports Results for the First Quarter Ended March 31, 2015
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 04/28/15 -- Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the first quarter ended March 31, 2015.
Voyage revenues of $120.9 million for the quarter ended March 31, 2015.
Voyage revenues adjusted on a cash basis of $121.5 million for the quarter ended March 31, 2015.
Adjusted EBITDA of $86.0 million for the quarter ended March 31, 2015.
Net income of $26.3 million for the quarter ended March 31, 2015.
Net income available to common stockholders of $23.3 million or $0.31 per share for the quarter ended March 31, 2015.
Adjusted Net income available to common stockholders of $28.6 million or $0.38 per share for the quarter ended March 31, 2015.
We entered into a new shipbuilding contract with HHIC-PHIL Inc. (Hanjin Heavy Philippines) for the construction of an 11,000TEU vessel. The vessel is expected to be delivered in December 2016. Pursuant to the Framework Agreement with York Capital, the Company holds a 49% equity interest in the relevant vessel-owning entity.
The Company entered into the following chartering arrangements:
Agreed to extend the charter of the 2000-built, 2,474TEU containership Areopolis with Evergreen for a period of minimum 4 and maximum 8 months starting from March 21, 2015 at a daily rate of $7,200.
Agreed to extend the charter of the 1997-built, 2,458TEU containership Messini with Evergreen for a period of minimum 9 and maximum 12 months starting from May 1, 2015 at a daily rate of $7,900.
Agreed to extend the charter of the 2000-built, 1,645TEU containership Neapolis with Yang Ming for a period of minimum 5 and maximum 7 months starting from May 9, 2015 at a daily rate of $8,000.
Agreed to extend the charter of the 1996-built, 1,504TEU containership Prosper with Sea Consortium for a period of minimum 3 and maximum 6 months starting from May 25, 2015 at a daily rate of $9,500.
Charterers exercised their option to extend the charter of the 1999-built. 2,526 TEU containership Elafonisos for a period of 6 months starting from May 1, 2015 at a daily rate of $7,000.
As of today, the Company has no ships laid up.
The investment period pursuant to the Framework Agreement with York Capital is set to expire on May 28, 2015. The Company is in discussions with its partner to extend the investment period.
On March 27, 2015, we declared a dividend of $0.476563 per share on our Series B Preferred Stock and a dividend of $0.531250 per share on our Series C Preferred Stock, both paid on April 15, 2015, to holders of record on April 14, 2015.
On April 1, 2015, we declared a dividend for the first quarter ended March 31, 2015, of $0.29 per share on our common stock, payable on May 6, 2015, to stockholders of record on April 21, 2015. This will be the Company''s eighteenth consecutive quarterly dividend since it commenced trading on the New York Stock Exchange and the third time the Company has increased the dividend.
"During the first quarter of the year, the Company continued to deliver positive results.
Recently we placed an order, together with our partners York Capital, for one additional 11,000 TEU containership vessel, to be built by Hanjin in Philippines. The ship is expected to be delivered in December 2016 and Costamare will own a 49% stake.
Our joint venture with York has been progressing quite well and since inception we have done deals of US $1.1 billion. All investments have been performing well and we are currently in discussions with our partner regarding the extension of the investment period.
Regarding the market, there is a positive momentum; charter rates have been rising, the number of idle fleet is below 2% and activity remains high. We have no ships laid up, while the ships coming out of charter this year provide an upside based on today''s market conditions."
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company''s performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month periods ended March 31, 2015 and 2014. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders, (iii) Adjusted Earnings per share, (iv) EBITDA and (v) Adjusted EBITDA.
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent net income before earnings allocated to preferred stock, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, realized (gain) /loss on Euro/USD forward contracts, swaps breakage costs, unrealized loss from a swap option agreement held by a jointly owned company with York, which is included in equity loss on investments, General and administrative expenses - non-cash component, amortization of prepaid lease rentals and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
EBITDA represents net income before interest and finance costs, interest income, amortization of prepaid lease rentals, depreciation and amortization of deferred dry-docking and special survey costs. Adjusted EBITDA represents net income before interest and finance costs, interest income, amortization of prepaid lease rentals, depreciation, amortization of deferred dry-docking and special survey costs, non-cash "Accrued charter revenue" recorded under charters with escalating charter rates, realized gain / (loss) on Euro / USD forward contracts, swaps breakage costs, unrealized loss from swap option agreement held by a jointly owned company with York, which is included in equity loss on investments, General and administrative expenses - non-cash component and non-cash changes in fair value of derivatives. "Accrued charter revenue" is attributed to the time difference between the revenue recognition and the cash collection. However, EBITDA and Adjusted EBITDA are not recognized measurements under U.S. GAAP. We believe that the presentation of EBITDA and Adjusted EBITDA are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that EBITDA and Adjusted EBITDA are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of EBITDA and Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
During the three-month periods ended March 31, 2015 and 2014, we had an average of 55.0 and 53.1 vessels, respectively, in our fleet. In the three-month period ended March 31, 2014, we accepted delivery of the newbuild vessels MSC Azov and MSC Ajaccio with an aggregate TEU capacity of 18,806. In the three-month periods ended March 31, 2015 and 2014, our fleet ownership days totaled 4,950 and 4,775 days, respectively. Ownership days are the primary driver of voyage revenue and vessels'' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Voyage Revenue
Voyage revenue increased by 5.2%, or $6.0 million, to $120.9 million during the three-month period ended March 31, 2015, from $114.9 million during the three-month period ended March 31, 2014. This increase was mainly due to (i) revenue earned by the three newbuild and three second hand vessels delivered to us during the nine-month period ended December 31, 2014; partly offset by (ii) revenue not earned by vessels sold for scrap during the nine-month period ended December 31, 2014, (iii) decreased charter rates in certain of our vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014, and (iv) increased off-hire days, mainly due to scheduled dry-dockings during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue"), increased by 3.4%, or $4.0 million, to $121.5 million during the three-month period ended March 31, 2015, from $117.5 million during the three-month period ended March 31, 2014. This increase was mainly due to (i) revenue earned by the three newbuild and three second hand vessels delivered to us during the nine-month period ended December 31, 2014; partly offset by (ii) revenue not earned by vessels sold for scrap during the nine-month period ended December 31, 2014, (iii) decreased charter rates in certain of our vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014, and (iv) increased off-hire days, mainly due to scheduled dry-dockings during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Voyage Expenses
Voyage expenses were $0.6 million, during the three-month period ended March 31, 2015 and $0.7 million during the three-month period ended March 31, 2014. Voyage expenses mainly include (i) off-hire expenses of our vessels, mainly related to fuel consumption and (ii) third party commissions.
Voyage Expenses - related parties
Voyage expenses - related parties in the amount of $0.9 million during the three-month period ended March 31, 2015 and in the amount of $0.9 million during the three-month period ended March 31, 2014, represent fees of 0.75% on voyage revenues charged to us by Costamare Shipping Company S.A. as provided under our group management agreement.
Vessels'' Operating Expenses
Vessels'' operating expenses, which also include the realized gain / (loss) under derivative contracts entered into in relation to foreign currency exposure, increased by 0.7%, or $0.2 million, to $29.6 million during the three-month period ended March 31, 2015, from $29.4 million during the three-month period ended March 31, 2014. The increase was partly attributable to the increased ownership days of our vessels during the three-month period ended March 31, 2015 compared to the three-month period ended March 31, 2014.
General and Administrative Expenses
General and administrative expenses increased by 18.2%, or $0.2 million, to $1.3 million during the three-month period ended March 31, 2015, from $1.1 million during the three-month period ended March 31, 2014. General and administrative expenses for the three-month periods ended March 31, 2015, included $0.63 million which is part of the annual fee that our manager receives.
Management Fees - related parties
Management fees paid to our managers increased by 6.7%, or $0.3 million, to $4.8 million during the three-month period ended March 31, 2015, from $4.5 million during the three-month period ended March 31, 2014. The increase was primarily attributable to (i) the inflation related upward adjustment by 4% of the management fee for each vessel (effective January 1, 2015), as provided under our group management agreement and (ii) the increased average number of vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
General and Administrative expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended March 31, 2015 amounted to $2.6 million, representing the value of the shares issued to our manager on March 31, 2015. No amounts were incurred in the prior period.
Amortization of Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $1.8 million for the three-month period ended March 31, 2015 and $1.9 million for the three-month period ended March 31, 2014. During the three-month period ended March 31, 2015 two vessels underwent and completed their special survey. During the three-month period ended March 31, 2014 two vessels underwent and completed their special survey.
Depreciation
Depreciation expense decreased by 0.4%, or $0.1 million, to $25.1 million during the three-month period ended March 31, 2015, from $25.2 million during the three-month period ended March 31, 2014. The decrease was mainly attributable to a change in the estimated scrap value of vessels, which had a favorable effect of $1.3 million for the three-month period ended March 31, 2015, partly offset by increased depreciation expenses as a result of the increased average number of vessels during the three-month period ended March 31, 2015, compared to the three-month period ended March 31, 2014.
Foreign Exchange Gains/ (Losses)
Foreign exchange gains were $0.2 million during the three-month period ended March 31, 2015. Foreign exchange losses were $0.1 million during the three-month period ended March 31, 2014.
Interest Income
Interest income for the three-month period ended March 31, 2015 and 2014 amounted to $0.4 million and $0.2 million, respectively.
Interest and Finance Costs
Interest and finance costs increased by 8.1%, or $2.1 million, to $27.9 million during the three-month period ended March 31, 2015, from $25.8 million during the three-month period ended March 31, 2014. The increase was mainly attributable to the increased interest expense charged to the consolidated statement of income in relation with the sale and leaseback of the three newbuild vessels which were delivered to us during the year ended December 31, 2014. During the three-month period ended March 31, 2014 there was a write-off of deferred finance costs due to the refinancing of one of our bank loans.
Equity Loss on Investments
The equity loss on investments of $0.2 million for the three-month period ended March 31, 2015, represents our share of the net losses of fifteen jointly owned companies pursuant to the Framework Agreement with York. We hold a range of 25% to 49% of the capital stock of these companies. The net loss of $0.2 million was mainly attributable to an unrealized loss of $0.4 million deriving from a swap option agreement entered into by a jointly-owned company.
Gain on Derivative Instruments
The fair value of our 22 interest rate derivative instruments which were outstanding as of March 31, 2015, equates to the amount that would be paid by us or to us should those instruments be terminated. As of March 31, 2015, the fair value of these 22 interest rate derivative instruments in aggregate amounted to a liability of $73.3 million. The effective portion of the change in the fair value of the interest rate derivative instruments that qualified for hedge accounting is recorded in "Other Comprehensive Income" ("OCI") while the ineffective portion is recorded in the consolidated statements of income. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in the consolidated statement of income. For the three-month period ended March 31, 2015, a net gain of $0.7 million has been included in OCI and a net gain of $2.0 million has been included in Gain on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during the three-month period ended March 31, 2015.
Net cash flows provided by operating activities for the three-month period ended March 31, 2015, increased by $1.0 million to $54.9 million, compared to $53.9 million for the three-month period ended March 31, 2014. The increase was primarily attributable to increased cash from operations of $3.9 million due to cash generated mainly from the employment of the three newbuild vessels delivered to us during the year ended December 31, 2014 and the decreased payments for interest (including swap payments) during the period of $0.3 million; partly offset by the unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $7.6 million.
Net cash used in investing activities was $13.4 million in the three-month period ended March 31, 2015, which mainly consisted of $13.0 million in advance payments for the construction of two newbuild vessels, pursuant to the Framework Agreement with York; we hold an equity interest ranging from 25% to 49% in jointly-owned companies.
Net cash used in investing activities was $65.1 million in the three-month period ended March 31, 2014, which consisted of (a) $40.6 million for capitalized costs and advance payments for the construction and delivery of three newbuild vessels and (b) $24.5 million in payments, pursuant to the Framework Agreement with York, to hold an equity interest ranging from 25% to 49% in jointly-owned companies.
Net cash used in financing activities was $70.3 million in the three-month period ended March 31, 2015, which mainly consisted of (a) $50.0 million of indebtedness that we repaid, (b) $3.3 million we repaid relating to our sale and leaseback agreements (c) $20.9 million we paid for dividends to holders of our common stock for the second quarter of 2014, and (d) $1.0 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock ( "Series B Preferred Stock") and $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock"), in both cases for the period from October 15, 2014 to January 14, 2015.
Net cash provided by financing activities was $101.5 million in the three-month period ended March 31, 2014, which mainly consisted of (a) $147.5 million of indebtedness that we repaid, (b) $171.1 million we received regarding the sale and leaseback transaction of two newbuild vessels that we delivered during the period, (c) $20.2 million we paid for dividends to holders of our common stock for the fourth quarter of 2013, (d) $1.0 million we paid for dividends to holders of our Series B Preferred Stock for the period from October 15, 2013 to January 14, 2014 and (e) $96.5 million net proceeds we received from our public offering in January 2014, of 4.0 million shares of our Series C Preferred Stock, net of underwriting discounts and expenses incurred in the offering.
As of March 31, 2015, we had a total cash liquidity of $141.4 million, consisting of cash, cash equivalents and restricted cash.
As of April 28, 2015, the following vessels were free of debt.
As of April 28, 2015, we had outstanding commitments relating to our ten contracted newbuilds aggregating approximately $307.6 million payable in installments until the vessels are delivered, out of which $185.0 million will be funded through committed financing. The amounts represent our interest in the relevant jointly-owned entities with York.
On Wednesday, April 29, 2015, at 8:30 a.m. ET, Costamare''s management team will hold a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-866-524-3160 (from the US), 0808 238 9064 (from the UK) or +1-412-317-6760 (from outside the US). Please quote "Costamare".
A replay of the conference call will be available until May 29, 2015. The United States replay number is +1-877-344-7529; the standard international replay number is +1-412-317-0088, and the access code required for the replay is: 10064487.
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website () under the "Investors" section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Costamare Inc. is one of the world''s leading owners and providers of containerships for charter. The Company has 41 years of history in the international shipping industry and a fleet of 69 containerships, with a total capacity of approximately 458,000 TEU, including ten newbuild containerships on order. Fourteen of our containerships, including ten newbuilds, have been acquired pursuant to the Framework Agreement with York Capital Management by vessel-owning joint venture entities in which we hold a minority equity interest. The Company''s common stock, Series B Preferred Stock and Series C Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B" and "CMRE PR C", respectively.
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".
The tables below provide additional information, as of April 28, 2015, about our fleet of containerships, including our newbuilds on order and the vessels acquired pursuant to the Framework Agreement with York. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
Our newbuilds on order have an aggregate capacity in excess of 125,000 TEU.
Gregory Zikos
Chief Financial Officer
Konstantinos Tsakalidis
Business Development
Costamare Inc.
Athens, Greece
Tel: (+30) 210-949-0050
Email:
Gus Okwu
Allison+Partners
New York
Telephone: (+1) 646-428-0638
Email:
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Datum: 28.04.2015 - 14:03 Uhr
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