展览99.2
营运业绩结果
2024年9月30日结束的三个月期间与2023年9月30日结束的三个月期间相比
截至2024年和2023年9月30日结束的三个月期间，我们拥有的船队分别平均拥有105.2和111.1艘船舶。此外，在结束于2024年和2023年9月30日的三个月期间内，透过我们的干散货运营平台costamare bulker inc.（“CBI”），我们分别租入了平均66.1和55.0艘第三方干散货船舶。截至2024年10月31日，CBI租入了56艘干散货船舶进行定期租船。
在2024年9月30日结束的三个月期间，我们交付了二手干散货船 Frontier 净重181,415吨，并出售了干散货船 甲骨文 及 Titan I总净重116,108吨。
在2023年9月30日结束的三个月内，我们收购了总载重吨为417,241的二手散装货船 Enna, Dorado 及 Arya 。
截至2024年9月30日，我们对NML的投资金额为12330万美元。自2023年第二季起，NML已纳入我们的综合财务报表。
在截至2024年9月30日和2023年的三个月期间内，我们的船队所有权日数分别为9,680和10,222天。所有权日数是航行收入和船只运营费用的主要驱动因素之一，代表我们船队中每艘船在一段时期内拥有的总天数。
财务业绩总表和船只运营数据
| 截至9月30日止三个月的时间 | 百分比 | |||||||||||||||
| (单位：百万美元，除百分比外) | 2023 | 2024 | 变化 | 变化 | ||||||||||||
| 航行营业收入 | $ | 397.3 | $ | 459.0 | $ | 61.7 | 15.5 | % | ||||||||
| 航行营业收入 - 关系人 | - | 79.4 | 79.4 | 未公布 | ||||||||||||
| 航程总收入 | $ | 397.3 | $ | 538.4 | 141.1 | 35.5 | % | |||||||||
| 投资租赁船只收益 | 3.1 | 6.2 | 3.1 | 100.0 | % | |||||||||||
| 航程费用 | (84.8 | ) | (93.3 | ) | 8.5 | 10.0 | % | |||||||||
| 租赁入场租金支出 | (87.7 | ) | (212.9 | ) | 125.2 | 142.8 | % | |||||||||
| 航程费用─相关方 | (3.6 | ) | (6.4 | ) | 2.8 | 77.8 | % | |||||||||
| 船舶运营费用 | (63.5 | ) | (60.3 | ) | (3.2 | ) | (5.0 | %) | ||||||||
| 总部及行政费用 | (6.0 | ) | (7.8 | ) | 1.8 | 30.0 | % | |||||||||
| 管理及代理费用─相关方 | (13.9 | ) | (15.9 | ) | 2.0 | 14.4 | % | |||||||||
| 管理和行政费用-非现金部分 | (1.4 | ) | (2.3 | ) | 0.9 | 64.3 | % | |||||||||
| 船舶定检和特别查验成本摊销 | (5.0 | ) | (6.0 | ) | 1.0 | 20.0 | % | |||||||||
| 折旧 | (42.2 | ) | (41.5 | ) | (0.7 | ) | (1.7 | %) | ||||||||
| 销售船舶之收益，净额 | - | 2.2 | 2.2 | 未公布 | ||||||||||||
| 待售船舶处置损失 | (4.8 | ) | - | (4.8 | ) | 未公布 | ||||||||||
| 船舶减损损失 | (0.2 | ) | - | (0.2 | ) | 未公布 | ||||||||||
| 汇率期货之利润/（亏损） | (3.1 | ) | 3.6 | 6.7 | 未公布 | |||||||||||
| 利息收入 | 9.1 | 8.6 | (0.5 | ) | (5.5 | %) | ||||||||||
| 利息及财务成本 | (36.7 | ) | (32.9 | ) | (3.8 | ) | (10.4 | %) | ||||||||
| 权益法下投资之收入/（亏损） | 1.8 | - | (1.8 | ) | 未公布 | |||||||||||
| 其他 | 1.9 | 0.2 | (1.7 | ) | (89.5 | %) | ||||||||||
| 衍生工具损失，净额 | (0.2 | ) | (1.0 | ) | (0.8 | ) | 未公布 | |||||||||
| 净利润 | $ | 60.1 | $ | 78.9 | ||||||||||||
1
| 截至9月30日止三个月的时间 | 百分比 | |||||||||||||||
| （以百万美元表示，除了百分比） | 2023 | 2024 | 变化 | 变化 | ||||||||||||
| 总航行营业收入 | $ | 397.3 | $ | 538.4 | $ | 141.1 | 35.5 | % | ||||||||
| 应计租赁营业收入 | 4.0 | (2.5 | ) | (6.5 | ) | 未公布 | ||||||||||
| 租船时间摊销 | (0.2 | ) | (0.2 | ) | - | - | ||||||||||
| 现金基础上调整后的总航次营业收入 (1) | $ | 401.1 | $ | 535.7 | $ | 134.6 | 33.6 | % | ||||||||
| 船舶运营数据 | 截至9月30日止三个月的时间 | 百分比 | ||||||||||||||
| 2023 | 2024 | 变化 | 变化 | |||||||||||||
| 平均船只数 | 111.1 | 105.2 | (5.9 | ) | (5.3 | %) | ||||||||||
| 所有权日数 | 10,222 | 9,680 | (542 | ) | (5.3 | %) | ||||||||||
| 进入干船坞和特殊检验的船舶数量 | 6 | 3 | (3 | ) | ||||||||||||
(1) 现金基础调整的总航程收入并不是美国公认会计原则（“GAAP”）下所承认的衡量方式。请参阅上文的“综合财务结果和船只运营数据”，以了解现金基础调整的总航程收入的调整。
总航行营业收入
在截至2024年9月30日为止的三个月期间，总航行营业收入较截至2023年9月30日为止的三个月期间增长了35.5％，即141.1百万美元，从39730万美元增至53840万美元。此增长主要归因于：(i) CBI因操作量的增加，所赚取的营业收入也增加了，(ii) 2023年第四季度购置的一艘集装箱船，2023年第三季度购置的两艘散货船，2024年第一季度购置的一艘散货船和2024年第二季度购置的一艘散货船所赚取的收入，(iii) 2024年第三季度某些散货船的租金与2023年第三季度相比有所上升， (iv) 2024年第三季度与2023年第三季度相比，船队的停租与闲置天数减少，部分抵销了在2023年下半年及截至2024年9月30日的九个月期间分别出售的一艘集装箱船和三艘散货船以及九艘散货船所未获得的收入。
以现金基础调整后的总航行收入（排除非现金的「应付包船收入」）于2024年9月30日结束的三个月期间增加了33.6%，或13460万美元，从2023年9月30日结束的三个月期间的40110万美元上升为53570万美元。结束于2024年和2023年9月30日的三个月期间的应付包船收入分别为负250万美元和正400万美元。
从租赁回租船只的投资收入
承租船舶投资收入分别为2024年9月30日及2023年，三个月期间为620万美元和310万美元。承租船舶投资收入由于2024年9月30日结束的三个月期间NML运营量增加，使收入增加。NML通过其全资子公司收购、拥有和裸艇租赁船舶。
航行费用
航行费用分别为9,330万和8,480万美元 截至2024年和2023年9月30日止三个月期间。航行费用主要包括 (i) 主要与干货船相关的燃料消耗、(ii) 第三方佣金、(iii) 港口费用以及 (iv) 运河通行费。
2
租赁外聘费用
截至2024年9月30日和2023年，包船租金支出分别为21290万美元和 8770万美元。包船租金支出是指通过CBI在租合同下包租第三方散货船的费用。
航行开支-相关方
航次费用-相关方分别为2024年和2023年截至9月30日的三个月期间为640万美元和360万美元。航次费用-相关方代表(i)由相关经理和相关服务提供商收取我们所拥有船队获得的航次收入的总计1.25%费用，(ii)就我们的集装箱船舶而言支付给两家相关包船券商公司的包船券商费用（至2024年和2023年截至9月30日的三个月期间分别为约40万美元和40万美元，合计），以及(iii)自2024年第二季度以来应支付与某些外包包租约有关的地址佣金给相关代理的佣金。该佣金随后由相关代理以全额返还方式支付给其各自的第三方客户，对相关代理没有任何利益。
船舶的营业费用
Vessels’ operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $60.3 million and $63.5 million during the three-month periods ended September 30, 2024 and 2023, respectively. Daily vessels’ operating expenses were $6,227 and $6,212 for the three-month periods ended September 30, 2024 and 2023, respectively. Daily operating expenses are calculated as vessels’ operating expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $7.8 million and $6.0 million during the three-month periods ended September 30, 2024 and 2023, respectively, and include amounts of $0.67 million and $0.67 million, respectively, that were paid to a related service provider.
Management and Agency Fees – related parties
Management fees charged by our related party managers were $10.9 million and $11.2 million during the three-month periods ended September 30, 2024 and 2023, respectively. The amounts charged by our related party managers include amounts paid to third party managers of $2.3 million and $3.7 million for the three-month periods ended September 30, 2024 and 2023, respectively. Furthermore, during the three-month periods ended September 30, 2024 and 2023, agency fees of $5.0 million and $2.7 million, in aggregate, were charged by four and three related agents, respectively, in connection with the operations of CBI.
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended September 30, 2024 amounted to $2.3 million, representing the value of the shares issued to a related service provider on September 30, 2024. General and administrative expenses - non-cash component for the three-month period ended September 30, 2023 amounted to $1.4 million, representing the value of the shares issued to a related service provider on September 29, 2023.
Amortization of Dry-Docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $6.0 million and $5.0 million during the three-month periods ended September 30, 2024 and 2023, respectively. During the three-month period ended September 30, 2024, three vessels underwent and completed their dry-docking and special survey. During the three-month period ended September 30, 2023, five vessels underwent and completed their dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods ended September 30, 2024 and 2023 was $41.5 million and $42.2 million, respectively.
Gain on Sale of Vessels, net
During the three-month period ended September 30, 2024, we recorded a gain of $2.2 million from the sale of the dry bulk vessel Titan I. Furthermore, the dry bulk vessel Oracle, which was classified as a vessel held for sale as of June 30, 2024, was delivered to her new owners. No vessels were sold during the three-month period ended September 30, 2023.
3
Loss on Vessel Held for Sale
We did not record any loss on any vessels held for sale during the three-month period ended September 30, 2024. During the three-month period ended September 30, 2023, we recorded a loss on vessel held for sale of $4.8 million representing the expected loss from the sale of the container vessel Oakland during the next twelve-month period.
Vessel’s Impairment Loss
During the three-month period ended September 30, 2024, no impairment loss was recorded. During the three-month period ended September 30, 2023, we recorded an impairment loss in relation to one of our dry bulk vessels in the amount of $0.2 million.
Interest Income
Interest income amounted to $8.6 million and $9.1 million for the three-month periods ended September 30, 2024 and 2023, respectively.
Interest and Finance Costs
Interest and finance costs were $32.9 million and $36.7 million during the three-month periods ended September 30, 2024 and 2023, respectively. The decrease is mainly attributable to the decreased interest expense due to a lower average loan balance during the three-month period ended September 30, 2024, compared to the three-month period ended September 30, 2023.
Income / (Loss) from Equity Method Investments
Income/(loss) from equity method investments for the three-month period ended September 30, 2024, was nil (compared to income of $1.8 million for the three-month period ended September 30, 2023) representing our share in the jointly owned companies set up pursuant to the Framework Deed. As of September 30, 2024 and 2023, two and three companies, respectively, were jointly owned pursuant to the Framework Deed out of which none and one company, respectively, owned container vessels.
Loss on Derivative Instruments, net
As of September 30, 2024, we hold derivative financial instruments that qualify for hedge accounting and derivative financial instruments that do not qualify for hedge accounting. The change in the fair value of each derivative instrument that qualifies for hedge accounting is recorded in “Other Comprehensive Income” (“OCI”). The change in the fair value of each derivative instrument that does not qualify for hedge accounting is recorded in the consolidated statements of income.
As of September 30, 2024, the fair value of these instruments, in aggregate, amounted to a net asset of $44.1 million. During the three-month period ended September 30, 2024, a net loss of $21.8 million has been included in OCI and a net loss of $1.0 million has been included in Loss on Derivative Instruments, net.
Cash Flows
Three-month periods ended September 30, 2024 and 2023
| Condensed cash flows | Three-month period ended September 30, | |||||||
| (Expressed in millions of U.S. dollars) | 2023 | 2024 | ||||||
| Net Cash Provided by Operating Activities | $ | 74.8 | $ | 123.7 | ||||
| Net Cash Provided by / (Used in) Investing Activities | $ | (1.6 | ) | $ | 9.1 | |||
| Net Cash Used in Financing Activities | $ | (42.8 | ) | $ | (229.7 | ) | ||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended September 30, 2024, increased by $48.9 million to $123.7 million, from $74.8 million for the three-month period ended September 30, 2023. The increase is mainly attributable to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis), the increased cash from operations during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023, the decrease in interest payments (including interest rate derivatives net receipts) during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023 and the decreased dry-docking and special survey costs during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023.
4
Net Cash Provided by / (Used in) Investing Activities
Net cash provided by investing activities was $9.1 million in the three-month period ended September 30, 2024, which mainly consisted of (i) proceeds we received from the sale of the dry bulk vessels Oracle and Titan I and (ii) net proceeds for the investments into which NML entered; partly offset by (i) the settlement payment for the acquisition of the secondhand dry bulk vessel Frontier, (ii) the advance payment for the acquisition of the secondhand dry bulk vessel Nord Magnes (tbr. Magnes) and (iii) payments for upgrades for certain of our container and dry bulk vessels.
Net cash used in investing activities was $1.6 million in the three-month period ended September 30, 2023, which mainly consisted of (i) payments for the acquisition of the secondhand dry bulk vessels Enna, Dorado and Arya, (ii) payments for upgrades for certain of our container and dry bulk vessels and (iii) net payments for investments into which NML entered; partly offset by the proceeds we received from the maturity of our short-term investments in US Treasury Bills.
Net Cash Used in Financing Activities
Net cash used in financing activities was $229.7 million in the three-month period ended September 30, 2024, which mainly consisted of (i) $96.3 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $21.6 million we received from one existing debt financing agreement), (ii) $116.0 million we paid, in aggregate, for the full redemption of our 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock (“Series E Preferred Stock”), (iii) $11.2 million we paid for dividends to holders of our common stock for the second quarter of 2024 and (iv) $0.9 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”), $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”) and $2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (“Series D Preferred Stock”) for the period from April 15, 2024 to July 14, 2024.
Net cash used in financing activities was $42.8 million in the three-month period ended September 30, 2023, which mainly consisted of (i) $3.0 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $82.4 million we received from three debt financing agreements), (ii) $28.8 million we paid for the re-purchase of 2.8 million of our common shares, (iii) $9.5 million we paid for dividends to holders of our common stock for the second quarter of 2023 and (iv) $0.9 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, $2.2 million we paid for dividends to holders of our Series D Preferred Stock and $2.5 million we paid for dividends to holders of our Series E Preferred Stock for the period from April 15, 2023 to July 14, 2023.
5
Results of Operations
Nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023
During the nine-month periods ended September 30, 2024 and 2023, we had an average of 105.9 and 111.3 vessels, respectively, in our owned fleet. In addition, during the nine-month periods ended September 30, 2024 and 2023, through CBI we chartered-in an average of 60.8 and 36.3 third-party dry bulk vessels, respectively. As of October 31, 2024, CBI has chartered-in 56 dry bulk vessels on period charters.
During the nine-month period ended September 30, 2024, we took delivery of the secondhand dry bulk vessels Miracle, Prosper and Frontier with an aggregate DWT of 541,953 and we sold the dry bulk vessels Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus, Adventure, Oracle and Titan I with an aggregate DWT capacity of 396,014.
During the nine-month period ended September 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil and as a result we obtained 100% of the equity interest in the vessel. Furthermore, during the nine-month period ended September 30, 2023, we acquired the secondhand dry bulk vessels Enna, Dorado and Arya with an aggregate DWT of 417,241 and we sold the container vessels Maersk Kalamata and Sealand Washington with an aggregate TEU capacity of 13,292 and the dry bulk vessels Miner, Taibo and Comity with an aggregate DWT of 104,714.
As of September 30, 2024, we have invested in NML the amount of $123.3 million. NML has been included in our consolidated financial statements since the second quarter of 2023.
In the nine-month periods ended September 30, 2024 and 2023, our fleet ownership days totaled 29,028 and 30,385 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.
Consolidated Financial Results and Vessels’ Operational Data
| Nine-month period ended September 30, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2023 | 2024 | Change | Change | ||||||||||||
| Voyage revenue | $ | 1,012.0 | $ | 1,406.7 | $ | 394.7 | 39.0 | % | ||||||||
| Voyage revenue – related parties | - | 111.1 | 111.1 | n.m. | ||||||||||||
| Total voyage revenue | 1,012.0 | 1,517.8 | 505.8 | 50.0 | % | |||||||||||
| Income from investments in lease back vessels | 4.6 | 17.7 | 13.1 | n.m. | ||||||||||||
| Voyage expenses | (185.9 | ) | (277.8 | ) | 91.9 | 49.4 | % | |||||||||
| Charter-in hire expenses | (174.7 | ) | (521.4 | ) | 346.7 | 198.5 | % | |||||||||
| Voyage expenses – related parties | (10.3 | ) | (14.7 | ) | 4.4 | 42.7 | % | |||||||||
| Vessels’ operating expenses | (194.1 | ) | (180.5 | ) | (13.6 | ) | (7.0 | %) | ||||||||
| General and administrative expenses | (14.5 | ) | (18.7 | ) | 4.2 | 29.0 | % | |||||||||
| Management and agency fees – related parties | (43.9 | ) | (45.3 | ) | 1.4 | 3.2 | % | |||||||||
| General and administrative expenses – non-cash component | (4.3 | ) | (6.5 | ) | 2.2 | 51.2 | % | |||||||||
| Amortization of dry-docking and special survey costs | (14.5 | ) | (17.3 | ) | 2.8 | 19.3 | % | |||||||||
| Depreciation | (124.5 | ) | (122.5 | ) | (2.0 | ) | (1.6 | %) | ||||||||
| Gain on sale of vessels, net | 118.0 | 3.3 | (114.7 | ) | n.m. | |||||||||||
| Loss on vessel held for sale | (4.8 | ) | - | (4.8 | ) | n.m. | ||||||||||
| Vessel’s impairment loss | (0.2 | ) | - | (0.2 | ) | n.m. | ||||||||||
| Foreign exchange gains / (losses) | (1.3 | ) | 0.9 | 2.2 | n.m. | |||||||||||
| Interest income | 25.5 | 26.2 | 0.7 | 2.7 | % | |||||||||||
| Interest and finance costs | (110.0 | ) | (99.9 | ) | (10.1 | ) | (9.2 | %) | ||||||||
| Income from equity method investments | 0.7 | - | (0.7 | ) | n.m. | |||||||||||
| Other | 5.7 | 2.3 | (3.4 | ) | (59.6 | %) | ||||||||||
| Gain /(Loss) on derivative instruments, net | (7.2 | ) | 20.8 | 28.0 | n.m. | |||||||||||
| Net Income | $ | 276.3 | $ | 284.4 | ||||||||||||
6
| Nine-month period ended September 30, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2023 | 2024 | Change | Change | ||||||||||||
| Total voyage revenue | $ | 1,012.0 | $ | 1,517.8 | $ | 505.8 | 50.0 | % | ||||||||
| Accrued charter revenue | 4.5 | (3.0 | ) | (7.5 | ) | n.m. | ||||||||||
| Amortization of time-charter assumed | (0.1 | ) | (0.4 | ) | (0.3 | ) | n.m. | |||||||||
| Total voyage revenue adjusted on a cash basis (1) | $ | 1,016.4 | $ | 1,514.4 | $ | 498.0 | 49.0 | % | ||||||||
| Vessels’ operational data | Nine-month period ended September 30, | Percentage | ||||||||||||||
| 2023 | 2024 | Change | Change | |||||||||||||
| Average number of vessels | 111.3 | 105.9 | (5.4 | ) | (4.9 | %) | ||||||||||
| Ownership days | 30,385 | 29,028 | (1,357 | ) | (4.5 | %) | ||||||||||
| Number of vessels under dry-docking and special survey | 18 | 9 | (9 | ) | ||||||||||||
(1) Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Consolidated Financial Results and Vessels’ Operational Data” above for the reconciliation of Total voyage revenue adjusted on a cash basis.
Total Voyage Revenue
Total voyage revenue increased by 50.0%, or $505.8 million, to $1,517.8 million during the nine-month period ended September 30, 2024, from $1,012.0 million during the nine-month period ended September 30, 2023. The increase is mainly attributable to (i) increased revenue earned by CBI due to the increased volume of its operations period over period, (ii) increased charter rates in certain of our owned container and dry bulk vessels and (iii) revenue earned by two container vessels acquired during the second and fourth quarter of 2023, respectively, two dry bulk vessels acquired during the third quarter of 2023 and two dry bulk vessels acquired during the nine-month period ended September 30, 2024, (iv) decreased fleet off-hire and idle days in the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023; partly offset by revenue not earned by one container vessel and six dry bulk vessels sold during the year ended 2023 and nine dry bulk vessels sold during the nine-month period ended September 30, 2024.
Total voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 49.0%, or $498.0 million, to $1,514.4 million during the nine-month period ended September 30, 2024, from $1,016.4 million during the nine-month period ended September 30, 2023. Accrued charter revenue for the nine-month periods ended September 30, 2024 and 2023 was a negative amount of $3.0 million and a positive amount of $4.5 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was $17.7 million and $4.6 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Increased income from investments in leaseback vessels, period over period, is attributable to (i) the income earned from NML’s operations for the entire nine-month period ended September 30, 2024 (in 2023, we earned income from NML’s operations starting from the second quarter of 2023) and (ii) the increased volume of NML’s operations during the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023. NML acquires, owns and bareboat charters out vessels through its wholly-owned subsidiaries.
Voyage Expenses
Voyage expenses were $277.8 million and $185.9 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Voyage expenses increased, period over period, mainly due to CBI’s increased volume of operations during the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023. Voyage expenses mainly include (i) fuel consumption mainly related to dry bulk vessels, (ii) third-party commissions, (iii) port expenses and (iv) canal tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $521.4 million and $174.7 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Charter-in hire expenses are expenses relating to chartering-in of third-party dry bulk vessels under charter agreements through CBI.
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Voyage Expenses – related parties
Voyage expenses – related parties were $14.7 million and $10.3 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Voyage expenses – related parties represent (i) fees of 1.25%, in the aggregate, on voyage revenues earned by our owned fleet charged by a related manager and a related service provider, (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $1.1 million and $1.0 million, in the aggregate, for the nine-month periods ended September 30, 2024 and 2023, respectively and (iii) address commissions on certain charter-out agreements payable to a related agent (since the second quarter of 2024). This commission is subsequently paid in full on a back-to-back basis by the related agent to its respective third-party clients with no benefit for the related agent.
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 $180.5 million and $194.1 million during the nine-month periods ended September 30, 2024 and 2023, respectively. Daily vessels’ operating expenses were $6,220 and $6,388 for the nine-month periods ended September 30, 2024 and 2023, respectively. Daily operating expenses are calculated as vessels’ operating expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $18.7 million and $14.5 million during the nine-month periods ended September 30, 2024 and 2023, respectively, and include amounts of $2.0 million and $2.0 million, respectively, that were paid to a related service provider.
Management and Agency Fees – related parties
Management fees charged by our related party managers were $32.9 million and $32.8 million during the nine-month periods ended September 30, 2024 and 2023, respectively. The amounts charged by our related party managers include amounts paid to third party managers of $8.3 million and $10.7 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Furthermore, during the nine-month periods ended September 30, 2024 and 2023, agency fees of $12.4 million and $11.1 million, in aggregate, were charged by four and three related agents, respectively, in connection with the operations of CBI.
General and Administrative Expenses – non-cash component
General and administrative expenses - non-cash component for the nine-month period ended September 30, 2024 amounted to $6.5 million, representing the value of the shares issued to a related service provider on March 29, 2024, June 28, 2024 and September 30, 2024. General and administrative expenses – non-cash component for the nine-month period ended September 30, 2023 amounted to $4.3 million, representing the value of the shares issued to a related service provider on March 30, 2023, June 30, 2023 and September 29, 2023.
Amortization of Dry-Docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $17.3 million and $14.5 million during the nine-month periods ended September 30, 2024 and 2023, respectively. During the nine-month period ended September 30, 2024, nine vessels underwent and completed their dry-docking and special survey. During the nine-month period ended September 30, 2023, 17 vessels underwent and completed their dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey.
Depreciation
Depreciation expense for the nine-month periods ended September 30, 2024 and 2023 was $122.5 million and $124.5 million, respectively.
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Gain on Sale of Vessels, net
During the nine-month period ended September 30, 2024, we recorded a net gain of $3.3 million from (i) the sale of the dry bulk vessels Manzanillo, Progress and Konstantinos, each of which was classified as a vessel held for sale as of December 31, 2023, (ii) the sale of the dry bulk vessels Merida, Alliance and Pegasus, (iii) the sale of the dry bulk vessel Adventure which was classified as a vessel held for sale as of March 31, 2024 (initially classified as vessels held for sale as of December 31, 2023), (iv) the sale of the dry bulk vessel Oracle which was classified as a vessel held for sale as of June 30, 2024 and (v) the sale of the dry bulk vessel Titan I. During the nine-month period ended September 30, 2023, we recorded an aggregate net gain of $118.0 million from (i) the sale of the container vessels Maersk Kalamata and Sealand Washington, which were classified as vessels held for sale as of December 31, 2022 (initially classified as vessels held for sale as of March 31, 2022), (ii) the sale of the dry bulk vessel Taibo, which was classified as a vessel held for sale as of March 31, 2023, (iii) the sale of the dry bulk vessels Miner and Comity and (iv) the result of the accounting classification of the container vessels Vela and Vulpecula as “Net investment in Sale type lease (Vessels)”.
Loss on Vessel Held for Sale
We did not record any loss on any vessels held for sale during the nine-month period ended September 30, 2024. During the nine-month period ended September 30, 2023, we recorded a loss on a vessel held for sale of $4.8 million, representing the expected loss from the sale of the container vessel Oakland during the next twelve-month period.
Vessel’s Impairment Loss
During the nine-month period ended September 30, 2024, no impairment loss was recorded. During the nine-month period ended September 30, 2023, we recorded an impairment loss in relation to one of our dry-bulk vessels in the amount of $0.2 million.
Interest Income
Interest income amounted to $26.2 million and $25.5 million for the nine-month periods ended September 30, 2024 and 2023, respectively.
Interest and Finance Costs
Interest and finance costs were $99.9 million and $110.0 million during the nine-month periods ended September 30, 2024 and 2023, respectively. The decrease is mainly attributable to the decreased interest expense due to lower average loan balance during the nine-month period ended September 30, 2024, compared to the nine-month period ended September 30, 2023.
Income /(Loss) from Equity Method Investments
Income/(loss) from equity method investments for the nine-month period ended September 30, 2024, was nil (income of $0.7 million for the nine-month period ended September 30, 2023) representing our share in jointly owned companies set up pursuant to the Framework Deed. During the nine-month period ended September 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil and as a result we obtained 100% of the equity interest in the vessel. As of September 30, 2024 and 2023 two and three companies, respectively, were jointly owned pursuant to the Framework Deed out of which none and one company, respectively, owned container vessels.
Gain / (Loss) on Derivative Instruments, net
As of September 30, 2024, we hold derivative financial instruments that qualify for hedge accounting and derivative financial instruments that do not qualify for hedge accounting. The change in the fair value of each derivative instrument that qualifies for hedge accounting is recorded in “Other Comprehensive Income” (“OCI”). The change in the fair value of each derivative instrument that does not qualify for hedge accounting is recorded in the consolidated statements of income.
As of September 30, 2024, the fair value of these instruments, in aggregate, amounted to a net asset of $44.1 million. During the nine-month period ended September 30, 2024, a net loss of $16.2 million has been included in OCI and a net gain of $20.8 million has been included in Gain / (Loss) on Derivative Instruments, net.
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Cash Flows
Nine-month periods ended September 30, 2024 and 2023
| Condensed cash flows | Nine-month period ended September 30, | |||||||
| (Expressed in millions of U.S. dollars) | 2023 | 2024 | ||||||
| Net Cash Provided by Operating Activities | $ | 178.5 | $ | 408.8 | ||||
| Net Cash Provided by / (Used in) Investing Activities | $ | 112.4 | $ | (8.8 | ) | |||
| Net Cash Used in Financing Activities | $ | (295.8 | ) | $ | (348.5 | ) | ||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the nine-month period ended September 30, 2024, increased by $230.3 million to $408.8 million, from $178.5 million for the nine-month period ended September 30, 2023. The increase is mainly attributable to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis), the increased cash from operations during the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023, the decrease in interest payments (including interest derivatives net receipts) during the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023 and the decreased dry-docking and special survey costs during the nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023.
Net Cash Provided by / (Used in) Investing Activities
Net cash used in investing activities was $8.8 million in the nine-month period ended September 30, 2024, which mainly consisted of (i) a settlement payment for the delivery of the secondhand dry bulk vessel Miracle, (ii) payments for the acquisition of the secondhand dry bulk vessels Prosper and Frontier, (iii) an advance payment for the acquisition of the secondhand dry bulk vessel Nord Magnes (tbr. Magnes), (iv) payments for upgrades for certain of our container and dry bulk vessels and (v) net payments for investments into which NML entered; partly offset by proceeds we received from the sale of the dry bulk vessels Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus, Adventure, Oracle and Titan I.
Net cash provided by investing activities was $112.4 million in the nine-month period ended September 30, 2023, which mainly consisted of proceeds we received from (i) the sale of the container vessels Sealand Washington and Maersk Kalamata and the dry bulk vessels Miner, Taibo and Comity and (ii) the maturity of our short-term investments in US Treasury Bills; partly offset by payments for the purchase of short-term investments in US Treasury Bills, payments for upgrades for certain of our container and dry bulk vessels, payments for the acquisition of the secondhand dry bulk vessels Enna, Dorado and Arya and payments for net investments into which NML entered.
Net Cash Used in Financing Activities
Net cash used in financing activities was $348.5 million in the nine-month period ended September 30, 2024, which mainly consisted of (i) $178.6 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $167.4 million we received from 10 debt financing agreements), (ii) $116.0 million we paid, in aggregate, for the full redemption of our Series E Preferred Stock, (iii) $29.9 million we paid for dividends to holders of our common stock for the fourth quarter of 2023 and the first quarter of 2024 and the second quarter of 2024 and (iv) $2.8 million we paid for dividends to holders of our Series B Preferred Stock, $6.3 million we paid for dividends to holders of our Series C Preferred Stock, $6.6 million we paid for dividends to holders of our Series D Preferred Stock for the period from October 15, 2023 to January 14, 2024, January 15, 2024 to April 14, 2024 and April 15, 2024 to July 14, 2024 and $5.1 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2023 to January 14, 2024 and January 15, 2024 to April 14, 2024.
Net cash used in financing activities was $295.8 million in the nine-month period ended September 30, 2023, which mainly consisted of (i) $168.0 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $564.2 million we received from seven debt financing agreements), (ii) $60.0 million we paid for the re-purchase of 6.3 million of our common shares, (iii) $29.8 million we paid for dividends to holders of our common stock for the fourth quarter of 2022, the first quarter of 2023 and the second quarter of 2023 and (iv) $2.8 million we paid for dividends to holders of our Series B Preferred Stock, $6.3 million we paid for dividends to holders of our Series C Preferred Stock, $6.6 million we paid for dividends to holders of our Series D Preferred Stock and $7.6 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2022 to January 14, 2023, January 15, 2023 to April 14, 2023 and April 15, 2023 to July 14, 2023.
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Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2024, we had Cash and cash equivalents (including restricted cash) of $876.6 million, $18.3 million invested in short-dated US Treasury Bills (short-term investments) and $29.9 million margin deposits in relation to our FFAs and bunker swaps. Furthermore, as of September 30, 2024, our liquidity stood at approximately $1,019.2 million including (a) our share of cash amounting to $0.1 million held in joint venture companies set up pursuant to the Framework Deed and (b) $94.2 million of available undrawn funds from two hunting license facilities.
Debt-free vessels
As of October 31, 2024, the following vessels were free of debt.
Unencumbered Vessels
(Refer to Fleet list for full details)
| Vessel Name | Year Built |
TEU / DWT Capacity |
||
| Containerships | ||||
| KURE | 1996 | 7,403 | ||
| MAERSK KOWLOON | 2005 | 7,471 | ||
| ETOILE | 2005 | 2,556 | ||
| MICHIGAN | 2008 | 1,300 | ||
| ARKADIA | 2001 | 1,550 | ||
| Dry Bulk Vessels | ||||
| PROSPER | 2012 | 179,895 |
Conference Call details:
On Friday, November 1, 2024 at 8:30 a.m. EST, Costamare’s management team will hold a conference call to discuss the financial results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or +1-412-317-9258 (from outside the US and the UK). Please quote “Costamare”. A replay of the conference call will be available until November 8, 2024. 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: 8837868.
Live webcast:
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading owners and providers of containerships and dry bulk vessels for charter. The Company has 50 years of history in the international shipping industry and a fleet of 68 containerships, with a total capacity of approximately 513,000 TEU and 39 owned dry bulk vessels with a total capacity of approximately 3,054,000 DWT (including three vessels we have agreed to acquire and one vessel we have agreed to sell). The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions. The Company participates in a leasing business that provides financing to third-party owners. 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.
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Forward-Looking Statements
This earnings release contains “forward-looking statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”, “anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”, “may”, “should”, “could”, “expect” and similar expressions. These statements are not historical facts but instead represent only Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare’s control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors”.
Company Contacts:
Gregory Zikos – Chief Financial Officer
Konstantinos Tsakalidis – Business Development
Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com
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Containership Fleet List
The table below provides additional information, as of October 31, 2024, about our fleet of containerships, 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 | Evergreen | 2016 | 14,424 | (*) | March 2026 |
| 2 | TITAN(i) | Evergreen | 2016 | 14,424 | (*) | April 2026 |
| 3 | TALOS(i) | Evergreen | 2016 | 14,424 | (*) | July 2026 |
| 4 | TAURUS(i) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 5 | THESEUS(i) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 6 | YM TRIUMPH(i) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 7 | YM TRUTH(i) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 8 | YM TOTALITY(i) | Yang Ming | 2020 | 12,690 | (*) | July 2030 |
| 9 | YM TARGET(i) | Yang Ming | 2021 | 12,690 | (*) | November 2030 |
| 10 | YM TIPTOP(i) | Yang Ming | 2021 | 12,690 | (*) | March 2031 |
| 11 | CAPE AKRITAS | MSC | 2016 | 11,010 | 33,000 | August 2031 |
| 12 | CAPE TAINARO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 13 | CAPE KORTIA | MSC | 2017 | 11,010 | 33,000 | August 2031 |
| 14 | CAPE SOUNIO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 15 | CAPE ARTEMISIO | Hapag Lloyd/(*) | 2017 | 11,010 | 36,650/(*) | March 2030(3) |
| 16 | ZIM SHANGHAI | ZIM/(*) | 2006 | 9,469 | 72,700/(*) | May 2028(4) |
| 17 | ZIM YANTIAN | ZIM/(*) | 2006 | 9,469 | 72,700/(*) | April 2028(5) |
| 18 | YANTIAN | COSCO/(*) | 2006 | 9,469 | (*)/(*) | May 2028(6) |
| 19 | COSCO HELLAS | COSCO/(*) | 2006 | 9,469 | (*)/(*) | August 2028(7) |
| 20 | BEIJING | COSCO/(*) | 2006 | 9,469 | (*)/(*) | July 2028(8) |
| 21 | MSC AZOV | MSC | 2014 | 9,403 | 35,300 | December 2026 |
| 22 | MSC AMALFI | MSC | 2014 | 9,403 | 35,300 | March 2027 |
| 23 | MSC AJACCIO | MSC | 2014 | 9,403 | 35,300 | February 2027 |
| 24 | MSC ATHENS | MSC | 2013 | 8,827 | 35,300 | January 2026 |
| 25 | MSC ATHOS | MSC | 2013 | 8,827 | 35,300 | February 2026 |
| 26 | VALOR | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | April 2030(9) |
| 27 | VALUE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | April 2030(10) |
| 28 | VALIANT | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | June 2030(11) |
| 29 | VALENCE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | July 2030(12) |
| 30 | VANTAGE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | September 2030(13) |
| 31 | NAVARINO | MSC/(*) | 2010 | 8,531 | 31,000/(*) | March 2029(14) |
| 32 | KLEVEN | MSC | 1996 | 8,044 | 41,500 | November 2026 |
| 33 | KOTKA | MSC | 1996 | 8,044 | 41,500 | December 2026 |
| 34 | MAERSK KOWLOON | Maersk | 2005 | 7,471 | 18,500 | August 2025 |
| 35 | KURE | MSC | 1996 | 7,403 | 41,500 | July 2026 |
| 36 | METHONI | Maersk | 2003 | 6,724 | 46,500 | August 2026 |
| 37 | PORTO CHELI | Maersk | 2001 | 6,712 | 30,075 | June 2026 |
| 38 | TAMPA I | ZIM/(*) | 2000 | 6,648 | 45,000/(*) | July 2025 / June 2028(15) |
| 39 | ZIM VIETNAM | ZIM | 2003 | 6,644 | 53,000 | October 2025 |
| 40 | ZIM AMERICA | ZIM | 2003 | 6,644 | 53,000 | October 2025 |
| 41 | ARIES | (*) | 2004 | 6,492 | 58,500 | March 2026 |
| 42 | ARGUS | (*) | 2004 | 6,492 | 58,500 | April 2026 |
| 43 | PORTO KAGIO | Maersk | 2002 | 5,908 | 28,822 | June 2026 |
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|
|
Vessel Name | Charterer | Year Built | Capacity (TEU) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) |
| 44 | GLEN CANYON | ZIM/(*) | 2006 | 5,642 | 62,500/(*) | June 2025/ April 2028(16) |
| 45 | PORTO GERMENO | Maersk | 2002 | 5,570 | 28,822 | June 2026 |
| 46 | LEONIDIO | Maersk | 2014 | 4,957 | 17,000 | October 2026(17) |
| 47 | KYPARISSIA | Maersk | 2014 | 4,957 | 17,000 | October 2026(18) |
| 48 | MEGALOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(19) |
| 49 | MARATHOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(19) |
| 50 | GIALOVA | (*) | 2009 | 4,578 | (*) | March 2026 |
| 51 | DYROS | Maersk | 2008 | 4,578 | 35,500 | April 2027(20) |
| 52 | NORFOLK | (*)/(*) | 2009 | 4,259 | (*)/(*) | May 2025/ March 2028(21) |
| 53 | VULPECULA | ZIM | 2010 | 4,258 | Please refer to note 22 | May 2028(22) |
| 54 | VOLANS | (*) | 2010 | 4,258 | (*) | July 2027 |
| 55 | VIRGO | Maersk | 2009 | 4,258 | 35,500 | April 2027(23) |
| 56 | VELA | ZIM | 2009 | 4,258 | Please refer to note 24 | April 2028(24) |
| 57 | ANDROUSA | (*) | 2010 | 4,256 | (*) | March 2026 |
| 58 | NEOKASTRO | CMA CGM | 2011 | 4,178 | 39,000 | February 2027 |
| 59 | ULSAN | Maersk | 2002 | 4,132 | 34,730 | January 2026 |
| 60 | POLAR BRASIL (i) | Maersk | 2018 | 3,800 | 21,000 | March 2026(25) |
| 61 | LAKONIA | COSCO | 2004 | 2,586 | 23,500 | February 2027(26) |
| 62 | SCORPIUS | Hapag Lloyd | 2007 | 2,572 | 16,500 | February 2026 |
| 63 | ETOILE | (*) | 2005 | 2,556 | (*) | June 2026 |
| 64 | AREOPOLIS | COSCO | 2000 | 2,474 | 23,500 | March 2027(27) |
| 65 | ARKADIA | Swire Shipping | 2001 | 1,550 | 13,000 | March 2025 |
| 66 | MICHIGAN | (*) | 2008 | 1,300 | (*) | October 2025 |
| 67 | TRADER | (*) | 2008 | 1,300 | (*) | October 2026 |
| 68 | LUEBECK | (*) | 2001 | 1,078 | (*) | April 2026 |
| (1) | Daily charter rates are gross, unless stated otherwise. Amounts set out for current daily charter rate are the amounts contained in the charter contracts. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could expire. |
| (3) | Cape Artemisio is currently chartered to Hapag Lloyd at a daily rate of $36,650 until March 12, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
| (4) | Zim Shanghai is currently chartered to ZIM at a daily rate of $72,700 until July 1, 2025, at the earliest. Upon redelivery of the vessel from ZIM, the vessel will commence a new charter with a leading liner company for a period of 34 to 36 months at an undisclosed rate. |
| (5) | Zim Yantian is currently chartered to ZIM at a daily rate of $72,700 until June 27, 2025, at the earliest. Upon redelivery of the vessel from ZIM, the vessel will commence a new charter with a leading liner company for a period of 34 to 36 months at an undisclosed rate. |
| (6) | Yantian is currently chartered to COSCO at an undisclosed rate until May 1, 2026, at the earliest. Following the aforementioned date, the vessel will be employed with a leading liner company for a period of 24 to 26 months at an undisclosed rate. |
| (7) | Cosco Hellas is currently chartered to COSCO at an undisclosed rate until August 1, 2026, at the earliest. Following the aforementioned date, the vessel will be employed with a leading liner company for a period of 24 to 26 months at an undisclosed rate. |
| (8) | Beijing is currently chartered to COSCO at an undisclosed rate until July 1, 2026, at the earliest. Following the aforementioned date, the vessel will be employed with a leading liner company for a period of 24 to 26 months at an undisclosed rate. |
| (9) | Valor is currently chartered to Hapag Lloyd at a daily rate of $32,400 until April 3, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
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| (10) | Value is currently chartered to Hapag Lloyd at a daily rate of $32,400 until April 25, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
| (11) | Valiant is currently chartered to Hapag Lloyd at a daily rate of $32,400 until June 5, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
| (12) | Valence is currently chartered to Hapag Lloyd at a daily rate of $32,400 until July 3, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
| (13) | Vantage is currently chartered to Hapag Lloyd at a daily rate of $32,400 until September 8, 2025, at the earliest. Upon redelivery of the vessel from Hapag Lloyd, the vessel will commence a new charter with a leading liner company for a period of 60 to 64 months at an undisclosed rate. |
| (14) | Navarino is currently chartered to MSC at a daily rate of $31,000 until March 1, 2025, at the earliest. Upon redelivery of the vessel from MSC, the vessel will commence a new charter with a leading liner company for a period of 48 to 52 months at an undisclosed rate. |
| (15) | Tampa I is currently chartered to ZIM at a daily rate of $45,000 until July 2025 (earliest redelivery) - August 2025 (latest redelivery). Upon redelivery of the vessel from ZIM, the vessel will commence a new charter with a leading liner company for a period of 34 to 36 months at an undisclosed rate. |
| (16) | Glen Canyon is currently chartered to ZIM at a daily rate of $62,500 until June 2025 (earliest redelivery) - September 2025 (latest redelivery). Upon redelivery of the vessel from ZIM, the vessel will commence a new charter with a leading liner company for a period of 34 to 36 months at an undisclosed rate. |
| (17) | Leonidio is currently chartered at a daily rate of $14,200 until December 7, 2024. From such date and until the expiration of the charter the new daily rate will be $17,000. |
| (18) | Kyparissia is currently chartered at a daily rate of $14,200 until November 24, 2024. From such date and until the expiration of the charter the new daily rate will be $17,000. |
| (19) | Charterer has the option to extend the current time charter for an additional period of approximately 24 months at a daily rate of $14,500. |
| (20) | Dyros is currently chartered to Maersk at a daily rate of $17,500 until April 15, 2025. Following the aforementioned date, the new daily rate will be $35,500 for a period of 24 to 26 months. |
| (21) | Norfolk is currently chartered until March 2025 (earliest redelivery) - May 2025 (latest redelivery). Upon redelivery of the vessel from its current charterer, the vessel will commence a new charter with a leading liner company until March 2028 (earliest redelivery) - May 2028 (latest redelivery) at an undisclosed rate. |
| (22) | Vulpecula is currently chartered to ZIM under a charterparty agreement which commenced in May 2023. The tenor of the charter is for a period of 60 to 64 months. For this charter, the daily rate is $99,000 for the first 12 month period, $91,250 for the second 12 month period, $10,000 for the third 12 month period and $8,000 for the remaining duration of the charter. |
| (23) | Virgo is currently chartered to Maersk at a daily rate of $21,500 until April 15, 2025. Following the aforementioned date, the new daily rate will be $35,500 for a period of 24 to 26 months. |
| (24) | Vela is currently chartered to ZIM under a charterparty agreement which commenced in April 2023. The tenor of the charter is for a period of 60 to 64 months. For this charter, the daily rate is $99,000 for the first 12 month period, $91,250 for the second 12 month period, $10,000 for the third 12 month period and $8,000 for the remaining duration of the charter. |
| (25) | Polar Brasil is currently chartered at a daily rate of $19,700 until April 27, 2025. From such date and until the expiration of the charter the new daily rate will be $21,000. Charterer has the option to extend the current time charter for two additional one-year periods at a daily rate of $21,000. |
| (26) | Lakonia is currently chartered to COSCO at a daily rate of $26,500 until March 24, 2025. Following the aforementioned date, the new daily rate will be $23,500 for a period of 23 to 25 months. |
| (27) | Areopolis is currently chartered to COSCO at a daily rate of $26,500 until April 3, 2025. Following the aforementioned date, the new daily rate will be $23,500 for a period of 23 to 25 months. |
| (i) | 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.
15
Owned Dry Bulk Vessel Fleet List
The tables below provide information, as of October 31, 2024 about our owned fleet of dry bulk vessels. Each vessel is owned by one of our subsidiaries.
|
|
Vessel Name | Year Built | Capacity (DWT) |
| 1 | FRONTIER | 2012 | 181,415 |
| 2 | MIRACLE | 2011 | 180,643 |
| 3 | PROSPER | 2012 | 179,895 |
| 4 | DORADO | 2011 | 179,842 |
| 5 | NORD MAGNES (tbr. MAGNES)(i) | 2011 | 179,546 |
| 6 | ENNA | 2011 | 175,975 |
| 7 | AEOLIAN | 2012 | 83,478 |
| 8 | GRENETA | 2010 | 82,166 |
| 9 | HYDRUS | 2011 | 81,601 |
| 10 | PHOENIX | 2012 | 81,569 |
| 11 | BUILDER | 2012 | 81,541 |
| 12 | FARMER | 2012 | 81,541 |
| 13 | SAUVAN | 2010 | 79,700 |
| 14 | ROSE | 2008 | 76,619 |
| 15 | MERCHIA | 2015 | 63,585 |
| 16 | DAWN | 2018 | 63,561 |
| 17 | SEABIRD | 2016 | 63,553 |
| 18 | ORION | 2015 | 63,473 |
| 19 | DAMON | 2012 | 63,301 |
| 20 | ARYA | 2013 | 61,424 |
| 21 | ALWINE OLDENDORFF (tbr. ALWINE) (i) | 2014 | 61,090 |
| 22 | AUGUST OLDENDORFF (tbr. AUGUST) (i) | 2015 | 61,090 |
| 23 | ATHENA | 2012 | 58,018 |
| 24 | ERACLE | 2012 | 58,018 |
| 25 | PYTHIAS | 2010 | 58,018 |
| 26 | NORMA | 2010 | 58,018 |
| 27 | CURACAO | 2011 | 57,937 |
| 28 | URUGUAY | 2011 | 57,937 |
| 29 | SERENA | 2010 | 57,266 |
| 30 | LIBRA | 2010 | 56,701 |
| 31 | CLARA | 2008 | 56,557 |
| 32 | BERMONDI | 2009 | 55,469 |
| 33 | VERITY | 2012 | 37,163 |
| 34 | PARITY | 2012 | 37,152 |
| 35 | ACUITY | 2011 | 37,152 |
| 36 | EQUITY | 2013 | 37,071 |
| 37 | DISCOVERY (ii) | 2012 | 37,019 |
| 38 | BERNIS | 2011 | 35,995 |
| 39 | RESOURCE | 2010 | 31,775 |
(i) Denotes vessel that we have agreed to acquire.
(ii) Denotes vessel that we have agreed to sell.
16
Consolidated Statements of Income
| Nine-months ended September 30, | Three-months ended September 30, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share amounts) | 2023 | 2024 | 2023 | 2024 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES: | ||||||||||||||||
| Voyage revenue | $ | 1,011,968 | $ | 1,406,695 | $ | 397,256 | $ | 459,040 | ||||||||
| Voyage revenue – related parties | - | 111,128 | - | 79,352 | ||||||||||||
| Total voyage revenue | 1,011,968 | 1,517,823 | 397,256 | 538,392 | ||||||||||||
| Income from investments in leaseback vessels | 4,591 | 17,668 | 3,114 | 6,249 | ||||||||||||
| Total revenues | $ | 1,016,559 | $ | 1,535,491 | $ | 400,370 | $ | 544,641 | ||||||||
| EXPENSES: | ||||||||||||||||
| Voyage expenses | (185,851 | ) | (277,791 | ) | (84,840 | ) | (93,348 | ) | ||||||||
| Charter-in hire expenses | (174,670 | ) | (521,431 | ) | (87,709 | ) | (212,874 | ) | ||||||||
| Voyage expenses – related parties | (10,262 | ) | (14,701 | ) | (3,626 | ) | (6,425 | ) | ||||||||
| Vessels’ operating expenses | (194,110 | ) | (180,545 | ) | (63,503 | ) | (60,277 | ) | ||||||||
| General and administrative expenses | (14,459 | ) | (18,698 | ) | (5,984 | ) | (7,762 | ) | ||||||||
| Management and agency fees – related parties | (43,950 | ) | (45,279 | ) | (13,889 | ) | (15,936 | ) | ||||||||
| General and administrative expenses – non-cash component | (4,294 | ) | (6,508 | ) | (1,440 | ) | (2,352 | ) | ||||||||
| Amortization of dry-docking and special survey costs | (14,472 | ) | (17,307 | ) | (5,015 | ) | (6,043 | ) | ||||||||
| Depreciation | (124,566 | ) | (122,529 | ) | (42,155 | ) | (41,485 | ) | ||||||||
| Gain on sale of vessels, net | 118,046 | 3,348 | - | 2,234 | ||||||||||||
| Loss on asset held for sale | (4,855 | ) | - | (4,855 | ) | - | ||||||||||
| Vessel’s impairment loss | (229 | ) | - | (229 | ) | - | ||||||||||
| Foreign exchange gains / losses | (1,284 | ) | 974 | (3,113 | ) | 3,628 | ||||||||||
| Operating income | $ | 361,603 | $ | 335,024 | $ | 84,012 | $ | 104,001 | ||||||||
| OTHER INCOME / (EXPENSES): | ||||||||||||||||
| Interest income | $ | 25,544 | $ | 26,196 | $ | 9,173 | $ | 8,629 | ||||||||
| Interest and finance costs | (110,023 | ) | (99,897 | ) | (36,686 | ) | (32,911 | ) | ||||||||
| Income / (loss) from equity method investments | 689 | 19 | 1,826 | (23 | ) | |||||||||||
| Other | 5,710 | 2,285 | 1,954 | 168 | ||||||||||||
| Gain / (Loss) on derivative instruments, net | (7,179 | ) | 20,791 | (193 | ) | (993 | ) | |||||||||
| Total other expenses, net | $ | (85,259 | ) | $ | (50,606 | ) | $ | (23,926 | ) | $ | (25,130 | ) | ||||
| Net Income | $ | 276,344 | $ | 284,418 | $ | 60,086 | $ | 78,871 | ||||||||
| Earnings allocated to Preferred Stock | (23,302 | ) | (18,566 | ) | (7,854 | ) | (5,288 | ) | ||||||||
| Deemed dividend to Series E Preferred Stock | - | (5,446 | ) | - | - | |||||||||||
| Net Gain attributable to the non-controlling interest | 5,052 | 529 | 1,055 | 1,880 | ||||||||||||
| Net Income available to common stockholders | $ | 258,094 | $ | 260,935 | $ | 53,287 | $ | 75,463 | ||||||||
| Earnings per common share, basic and diluted | $ | 2.13 | $ | 2.19 | $ | 0.45 | $ | 0.63 | ||||||||
| Weighted average number of shares, basic and diluted | 121,059,768 | 119,129,429 | 118,107,881 | 119,577,920 | ||||||||||||
17
COSTAMARE INC.
Consolidated Balance Sheets
| (Expressed in thousands of U.S. dollars) | As of December 31, 2023 | As of September 30, 2024 | ||||||
| ASSETS | (Audited) | (Unaudited) | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 745,544 | $ | 798,751 | ||||
| Restricted cash | 10,645 | 10,390 | ||||||
| Margin deposits | 13,748 | 29,948 | ||||||
| Short-term investments | 17,492 | 18,284 | ||||||
| Investment in leaseback vessels, current | 27,362 | 28,066 | ||||||
| Net investment in sales type lease (Vessels), current | 22,620 | 21,091 | ||||||
| Accounts receivable | 50,684 | 61,770 | ||||||
| Inventories | 61,266 | 61,488 | ||||||
| Due from related parties | 4,119 | 11,641 | ||||||
| Fair value of derivatives | 33,310 | 35,725 | ||||||
| Insurance claims receivable | 18,458 | 11,346 | ||||||
| Vessels held for sale | 40,307 | - | ||||||
| Time-charter assumed | 405 | 197 | ||||||
| Accrued charter revenue | 9,752 | 9,399 | ||||||
| Prepayments and other | 61,949 | 62,617 | ||||||
| Total current assets | $ | 1,117,661 | $ | 1,160,713 | ||||
| FIXED ASSETS, NET: | ||||||||
| Vessels and advances, net | 3,446,797 | 3,360,263 | ||||||
| Total fixed assets, net | $ | 3,446,797 | $ | 3,360,263 | ||||
| NON-CURRENT ASSETS: | ||||||||
| Equity method investments | $ | 552 | $ | 81 | ||||
| Investment in leaseback vessels, non-current | 191,674 | 219,136 | ||||||
| Deferred charges, net | 72,801 | 73,398 | ||||||
| Finance leases, right-of-use assets (Vessels) | 39,211 | 38,168 | ||||||
| Net investment in sales type lease (Vessels), non-current | 19,482 | 6,392 | ||||||
| Operating leases, right-of-use assets | 284,398 | 286,906 | ||||||
| Accounts receivable, non-current | 5,586 | 3,611 | ||||||
| Due from related parties, non-current | - | 1,875 | ||||||
| Restricted cash | 69,015 | 67,481 | ||||||
| Fair value of derivatives, non-current | 28,639 | 21,604 | ||||||
| Accrued charter revenue, non-current | 10,937 | 4,626 | ||||||
| Time-charter assumed, non-current | 269 | 122 | ||||||
| Total assets | $ | 5,287,022 | $ | 5,244,376 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 347,027 | $ | 317,386 | ||||
| Finance lease liability | 2,684 | 24,565 | ||||||
| Operating lease liabilities, current portion | 160,993 | 180,298 | ||||||
| Accounts payable | 46,769 | 65,892 | ||||||
| Due to related parties | 3,172 | 4,218 | ||||||
| Accrued liabilities | 39,521 | 34,795 | ||||||
| Unearned revenue | 52,177 | 51,779 | ||||||
| Fair value of derivatives | 3,050 | 9,951 | ||||||
| Other current liabilities | 7,377 | 15,721 | ||||||
| Total current liabilities | $ | 662,770 | $ | 704,605 | ||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term debt, net of current portion | $ | 1,999,193 | $ | 1,857,325 | ||||
| Finance lease liability, net of current portion | 23,877 | - | ||||||
| Operating lease liabilities, non-current portion | 114,063 | 98,865 | ||||||
| Fair value of derivatives, net of current portion | 11,194 | 3,250 | ||||||
| Unearned revenue, net of current portion | 27,352 | 17,289 | ||||||
| Other non-current liabilities | 9,184 | 17,537 | ||||||
| Total non-current liabilities | $ | 2,184,863 | $ | 1,994,266 | ||||
| COMMITMENTS AND CONTINGENCIES | - | - | ||||||
| Temporary equity – Redeemable non-controlling interest in subsidiary | $ | 629 | $ | (2,407 | ) | |||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock | $ | - | $ | - | ||||
| Common stock | 13 | 13 | ||||||
| Treasury stock | (120,095 | ) | (120,095 | ) | ||||
| Additional paid-in capital | 1,435,294 | 1,341,777 | ||||||
| Retained earnings | 1,045,932 | 1,263,640 | ||||||
| Accumulated other comprehensive income | 21,387 | 5,211 | ||||||
| Total Costamare Inc. stockholders’ equity | $ | 2,382,531 | $ | 2,490,546 | ||||
| Non-controlling interest | 56,229 | 57,366 | ||||||
| Total stockholders’ equity | 2,438,760 | 2,547,912 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,287,022 | $ | 5,244,376 | ||||
18
Financial Summary
| Nine-month period ended September 30, | Three-month period ended September 30, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2023 | 2024 | 2023 | 2024 | ||||||||||||
| Voyage revenue | $ | 1,011,968 | $ | 1,406,695 | $ | 397,256 | $ | 459,040 | ||||||||
| Voyage revenue – related parties | - | $ | 111,128 | - | $ | 79,352 | ||||||||||
| Total voyage revenue | $ | 1,011,968 | $ | 1,517,823 | $ | 397,256 | $ | 538,392 | ||||||||
| Accrued charter revenue (1) | $ | 4,515 | $ | (3,027 | ) | $ | 3,984 | $ | (2,457 | ) | ||||||
| Amortization of time-charter assumed | $ | (141 | ) | $ | (383 | ) | $ | (170 | ) | $ | (239 | ) | ||||
| Total voyage revenue adjusted on a cash basis (2) | $ | 1,016,342 | $ | 1,514,413 | $ | 401,070 | $ | 535,696 | ||||||||
| Income from investments in leaseback vessels | $ | 4,591 | $ | 17,668 | $ | 3,114 | $ | 6,249 | ||||||||
| Adjusted Net Income available to common stockholders (3) | $ | 169,024 | $ | 247,348 | $ | 53,931 | $ | 80,722 | ||||||||
| Weighted Average number of shares | 121,059,768 | 119,129,429 | 118,107,881 | 119,577,920 | ||||||||||||
| Adjusted Earnings per share (3) | $ | 1.40 | $ | 2.08 | $ | 0.46 | $ | 0.68 | ||||||||
| Net Income | $ | 276,344 | $ | 284,418 | $ | 60,086 | $ | 78,871 | ||||||||
| Net Income available to common stockholders | $ | 258,094 | $ | 260,935 | $ | 53,287 | $ | 75,463 | ||||||||
| Weighted Average number of shares | 121,059,768 | 119,129,429 | 118,107,881 | 119,577,920 | ||||||||||||
| Earnings per share | $ | 2.13 | $ | 2.19 | $ | 0.45 | $ | 0.63 | ||||||||
(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. The reverse is true for charters with descending rates.
(2) Total voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates. However, Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. GAAP. We believe that the presentation of Total 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 of our fleet are described in the notes to the “Fleet List” tables above.
(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 and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month and the nine-month periods ended September 30, 2024 and 2023. 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.
19
Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share
| Nine-month period ended September 30, | Three-month period ended September 30, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2023 | 2024 | 2023 | 2024 | ||||||||||||
| Net Income | $ | 276,344 | $ | 284,418 | $ | 60,086 | $ | 78,871 | ||||||||
| Earnings allocated to Preferred Stock | (23,302 | ) | (18,566 | ) | (7,854 | ) | (5,288 | ) | ||||||||
| Deemed dividend of Series E Preferred Stock | - | (5,446 | ) | - | - | |||||||||||
| Non-Controlling Interest | 5,052 | 529 | 1,055 | 1,880 | ||||||||||||
| Net Income available to common stockholders | 258,094 | 260,935 | 53,287 | 75,463 | ||||||||||||
| Accrued charter revenue | 4,515 | (3,027 | ) | 3,984 | (2,457 | ) | ||||||||||
| Deferred charter-in expense | - | 300 | - | (201 | ) | |||||||||||
| General and administrative expenses - non-cash component | 4,294 | 6,508 | 1,440 | 2,352 | ||||||||||||
| Amortization of time-charter assumed | (141 | ) | (383 | ) | (170 | ) | (239 | ) | ||||||||
| Realized gain on Euro/USD forward contracts | (536 | ) | (787 | ) | (301 | ) | (299 | ) | ||||||||
| Vessel’s impairment loss | 229 | - | 229 | - | ||||||||||||
| Gain on sale of vessels, net | (118,046 | ) | (3,348 | ) | - | (2,234 | ) | |||||||||
| Loss on vessel held for sale | 4,855 | - | 4,855 | - | ||||||||||||
| (Gain) / Loss on sale of vessels, net, by jointly owned companies with York Capital included in equity gain on investments (1) | 493 | - | (1,572 | ) | - | |||||||||||
| Non-recurring, non-cash write-off of loan deferred financing costs | 1,439 | 405 | - | 100 | ||||||||||||
| (Gain) / Loss on derivative instruments, excluding realized (gain) / loss on derivative instruments (1) | 13,828 | (16,384 | ) | (7,821 | ) | 8,053 | ||||||||||
| Other non-cash items | - | 3,129 | - | 184 | ||||||||||||
| Adjusted Net Income available to common stockholders | $ | 169,024 | $ | 247,348 | $ | 53,931 | $ | 80,722 | ||||||||
| Adjusted Earnings per Share | $ | 1.40 | $ | 2.08 | $ | 0.46 | $ | 0.68 | ||||||||
| Weighted average number of shares | 121,059,768 | 119,129,429 | 118,107,881 | 119,577,920 | ||||||||||||
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock, deemed dividend of Series E Preferred Stock and Non-Controlling Interest, but before non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates, deferred charter-in expense, amortization of time-charter assumed, loss on vessel held for sale, vessel’s impairment loss, realized gain on Euro/USD forward contracts, gain on sale of vessels, net , (gain)/loss on sale of vessels, net, by jointly owned companies with York Capital included in equity gain on investments, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, (gain)/loss on derivative instruments, excluding realized (gain)/loss on derivative instruments and other non-cash items. “Accrued charter revenue” is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
| (1) | Items to consider for comparability include gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases to Adjusted Net Income available to common stockholders. |
20