展覽99.2
營運業績結果
2024年9月30日結束的三個月期間與2023年9月30日結束的三個月期間相比
截至2024年和2023年9月30日結束的三個月期間，我們擁有的船隊分別平均擁有105.2和111.1艘船舶。此外，在結束於2024年和2023年9月30日的三個月期間內，透過我們的干散貨運營平台costamare bulker inc.（“CBI”），我們分別租入了平均66.1和55.0艘第三方干散貨船舶。截至2024年10月31日，CBI租入了56艘干散貨船舶進行定期租船。
在2024年9月30日結束的三個月期間，我們交付了二手乾散貨船 Frontier 淨重181,415噸，並出售了乾散貨船 甲骨文 及 Titan I總淨重116,108噸。
在2023年9月30日結束的三個月內，我們收購了總載重噸為417,241的二手散裝貨船 Enna, Dorado 及 Arya 。
截至2024年9月30日，我們對NML的投資金額為12330萬美元。自2023年第二季起，NML已納入我們的綜合財務報表。
在截至2024年9月30日和2023年的三個月期間內，我們的船隊所有權日數分別為9,680和10,222天。所有權日數是航行收入和船隻運營費用的主要驅動因素之一，代表我們船隊中每艘船在一段時期內擁有的總天數。
財務業績總表和船隻運營數據
| 截至9月30日止三個月的時間 | 百分比 | |||||||||||||||
| (單位：百萬美元，除百分比外) | 2023 | 2024 | 變化 | 變化 | ||||||||||||
| 航行營業收入 | $ | 397.3 | $ | 459.0 | $ | 61.7 | 15.5 | % | ||||||||
| 航行營業收入 - 關係人 | - | 79.4 | 79.4 | 未公佈 | ||||||||||||
| 航程總收入 | $ | 397.3 | $ | 538.4 | 141.1 | 35.5 | % | |||||||||
| 投資租賃船只收益 | 3.1 | 6.2 | 3.1 | 100.0 | % | |||||||||||
| 航程費用 | (84.8 | ) | (93.3 | ) | 8.5 | 10.0 | % | |||||||||
| 租賃入場租金支出 | (87.7 | ) | (212.9 | ) | 125.2 | 142.8 | % | |||||||||
| 航程費用─相關方 | (3.6 | ) | (6.4 | ) | 2.8 | 77.8 | % | |||||||||
| 船舶運營費用 | (63.5 | ) | (60.3 | ) | (3.2 | ) | (5.0 | %) | ||||||||
| 總部及行政費用 | (6.0 | ) | (7.8 | ) | 1.8 | 30.0 | % | |||||||||
| 管理及代理費用─相關方 | (13.9 | ) | (15.9 | ) | 2.0 | 14.4 | % | |||||||||
| 管理和行政費用-非現金部分 | (1.4 | ) | (2.3 | ) | 0.9 | 64.3 | % | |||||||||
| 船舶定檢和特別查驗成本攤銷 | (5.0 | ) | (6.0 | ) | 1.0 | 20.0 | % | |||||||||
| 折舊 | (42.2 | ) | (41.5 | ) | (0.7 | ) | (1.7 | %) | ||||||||
| 銷售船舶之收益，淨額 | - | 2.2 | 2.2 | 未公佈 | ||||||||||||
| 待售船舶處置損失 | (4.8 | ) | - | (4.8 | ) | 未公佈 | ||||||||||
| 船舶減損損失 | (0.2 | ) | - | (0.2 | ) | 未公佈 | ||||||||||
| 匯率期貨之利潤/（虧損） | (3.1 | ) | 3.6 | 6.7 | 未公佈 | |||||||||||
| 利息收入 | 9.1 | 8.6 | (0.5 | ) | (5.5 | %) | ||||||||||
| 利息及財務成本 | (36.7 | ) | (32.9 | ) | (3.8 | ) | (10.4 | %) | ||||||||
| 權益法下投資之收入/（虧損） | 1.8 | - | (1.8 | ) | 未公佈 | |||||||||||
| 其他 | 1.9 | 0.2 | (1.7 | ) | (89.5 | %) | ||||||||||
| 衍生工具損失，淨額 | (0.2 | ) | (1.0 | ) | (0.8 | ) | 未公佈 | |||||||||
| 凈利潤 | $ | 60.1 | $ | 78.9 | ||||||||||||
1
| 截至9月30日止三個月的時間 | 百分比 | |||||||||||||||
| （以百萬美元表示，除了百分比） | 2023 | 2024 | 變化 | 變化 | ||||||||||||
| 總航行營業收入 | $ | 397.3 | $ | 538.4 | $ | 141.1 | 35.5 | % | ||||||||
| 應計租賃營業收入 | 4.0 | (2.5 | ) | (6.5 | ) | 未公佈 | ||||||||||
| 租船時間攤銷 | (0.2 | ) | (0.2 | ) | - | - | ||||||||||
| 現金基礎上調整後的總航次營業收入 (1) | $ | 401.1 | $ | 535.7 | $ | 134.6 | 33.6 | % | ||||||||
| 船舶運營數據 | 截至9月30日止三個月的時間 | 百分比 | ||||||||||||||
| 2023 | 2024 | 變化 | 變化 | |||||||||||||
| 平均船隻數 | 111.1 | 105.2 | (5.9 | ) | (5.3 | %) | ||||||||||
| 所有權日數 | 10,222 | 9,680 | (542 | ) | (5.3 | %) | ||||||||||
| 進入乾船塢和特殊檢驗的船舶數量 | 6 | 3 | (3 | ) | ||||||||||||
(1) 現金基礎調整的總航程收入並不是美國公認會計原則（“GAAP”）下所承認的衡量方式。請參閱上文的“綜合財務結果和船隻運營數據”，以了解現金基礎調整的總航程收入的調整。
總航行營業收入
在截至2024年9月30日為止的三個月期間，總航行營業收入較截至2023年9月30日為止的三個月期間增長了35.5％，即141.1百萬美元，從39730萬美元增至53840萬美元。此增長主要歸因於：(i) CBI因操作量的增加，所賺取的營業收入也增加了，(ii) 2023年第四季度購置的一艘集裝箱船，2023年第三季度購置的兩艘散貨船，2024年第一季度購置的一艘散貨船和2024年第二季度購置的一艘散貨船所賺取的收入，(iii) 2024年第三季度某些散貨船的租金與2023年第三季度相比有所上升， (iv) 2024年第三季度與2023年第三季度相比，船隊的停租與閒置天數減少，部分抵銷了在2023年下半年及截至2024年9月30日的九個月期間分別出售的一艘集裝箱船和三艘散貨船以及九艘散貨船所未獲得的收入。
以現金基礎調整後的總航行收入（排除非現金的「應付包船收入」）於2024年9月30日結束的三個月期間增加了33.6%，或13460萬美元，從2023年9月30日結束的三個月期間的40110萬美元上升為53570萬美元。結束於2024年和2023年9月30日的三個月期間的應付包船收入分別為負250萬美元和正400萬美元。
從租賃回租船隻的投資收入
承租船舶投資收入分別為2024年9月30日及2023年，三個月期間為620萬美元和310萬美元。承租船舶投資收入由於2024年9月30日結束的三個月期間NML運營量增加，使收入增加。NML通過其全資子公司收購、擁有和裸艇租賃船舶。
航行費用
航行費用分別為9,330萬和8,480萬美元 截至2024年和2023年9月30日止三個月期間。航行費用主要包括 (i) 主要與乾貨船相關的燃料消耗、(ii) 第三方佣金、(iii) 港口費用以及 (iv) 運河通行費。
2
租賃外聘費用
截至2024年9月30日和2023年，包船租金支出分別為21290萬美元和 8770萬美元。包船租金支出是指通過CBI在租合同下包租第三方散貨船的費用。
航行開支-相關方
航次費用-相關方分別為2024年和2023年截至9月30日的三個月期間為640萬美元和360萬美元。航次費用-相關方代表(i)由相關經理和相關服務提供商收取我們所擁有船隊獲得的航次收入的總計1.25%費用，(ii)就我們的集裝箱船舶而言支付給兩家相關包船券商公司的包船券商費用（至2024年和2023年截至9月30日的三個月期間分別為約40萬美元和40萬美元，合計），以及(iii)自2024年第二季度以來應支付與某些外包包租約有關的地址佣金給相關代理的佣金。該佣金隨後由相關代理以全額返還方式支付給其各自的第三方客戶，對相關代理沒有任何利益。
船舶的營業費用
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.
7
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.
8
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.
10
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