Seaspan Reports Financial Results For the Three and Nine

Seaspan Reports Financial Results For the Three and Nine Months Ended
September 30, 2012 
Declares Third Quarter Dividend of $0.25 per Common Share 
HONG KONG, CHINA -- (Marketwire) -- 10/30/12 -- Seaspan Corporation
("Seaspan") (NYSE:SSW) announced today its financial results for the
three and nine months ended September 30, 2012. Below is a summary of
Seaspan's key financial results:  
Summary of Key Financial Results (in thousands of USD):  


 
                               Three Months Ended                           
                                  September 30,              Change         
                            -----------------------  -----------------------
                                   2012        2011            $         %  
                            ----------- -----------  ----------- -----------
Reported net earnings (loss) $   17,813  $ (122,607)  $  140,420     114.5% 
Normalized net earnings(1)   $   33,608  $   34,132   $     (524)     (1.5%)
Earnings (loss) per share,                                                  
 basic and diluted           $     0.01  $    (2.01)  $     2.02     100.5% 
Normalized earnings per                                                     
 share, converted(1)
 (Series A preferred
 shares converted at $15)    $     0.30  $     0.29   $     0.01       3.4% 
Cash available for                                                          
 distribution to common                                                     
 shareholders(2)             $   69,811  $   63,930   $    5,881       9.2% 
Adjusted EBITDA(3)           $  129,043  $  114,964   $   14,079      12.2% 
                                                                            
                                Nine Months Ended                           
                                  September 30,              Change         
                             ----------------------- -----------------------
                                    2012        2011           $         %  
                             ----------- ----------- ----------- -----------
Reported net earnings (loss)  $   62,322  $ (106,917) $  169,239     158.3%
Normalized net earnings(1)    $  104,615  $   87,953  $   16,662      18.9% 
Earnings (loss) per share,    
                                              
 basic and diluted            $     0.18  $    (2.19) $     2.37     108.2% 
Normalized earnings per                                                     
 share, converted(1) (Series                                                
 A preferred shares converted                                               
 at $15)                      $     0.95  $     0.77  $     0.18      23.4% 
Cash available for                                                          
 distribution to common                                                     
 shareholders(2)              $  211,564  $  168,360  $   43,204      25.7% 
Adjusted EBITDA(3)            $  376,809  $  298,030  $   78,779      26.4% 

 
(1)  Normalized net earnings and normalized earnings per share are
non-GAAP measures that are adjusted for items such as interest
expense, change in fair value of financial instruments, interest
expense at the hedged rate, organizational development costs, losses
(gains) on vessels and certain other items that Seaspan believes are
not representative of its operating performance. Normalized earnings
per share, converted, reflects normalized earnings per share on a
pro-forma basis on the assumption that Seaspan's outstanding Series A
preferred shares are converted at $15.00 per share. Please read
"Reconciliation of Non-GAAP Financial Measures for the Three and Nine
Months Ended September 30, 2012 and 2011- Description of Non-GAAP
Financial Measures - B. Normalized Net Earnings and Normalized
Earnings per Share" for a description of normalized net earnings and
normalized earnings per share, converted, and for reconciliations of
these measures to net earnings and earnings per share, respectively. 
(2) Cash available for distribution to common shareholders is a
non-GAAP measure that represents net earnings adjusted for
depreciation and amortization, interest expense, amortization of
deferred charges, non-cash share-based compensation, change in fair
value of financial instruments, bareboat charter adjustment,
organizational development costs, amounts paid for dry-docking, cash
dividends paid on preferred shares, losses (gains) on vessels,
interest expense at the hedged rate and certain other items that
Seaspan believes are not representative of its operating performance.
Please read "Reconciliation of Non-GAAP Financial Measures for the
Three and Nine Months Ended September 30, 2012 and 2011 - Description
of Non-GAAP Financial Measures - A. Cash Available for Distribution
to Common Shareholders" for a description of cash available for
distribution to common shareholders and a reconciliation of cash
available for distribution to net earnings. 
(3) Adjusted EBITDA is a non-GAAP measure that represents net
earnings before interest expense and other debt-related expenses,
interest income, income tax expense, depreciation and amortization
expense, bareboat charter adjustment, organizational development
costs, losses (gains) on vessels, change in fair value of financial
instruments and certain other items that Seaspan believes are not
representative of its operating performance. Please read
"Reconciliation of Non-GAAP Financial Measures for the Three and Nine
Months Ended September 30, 2012 and 2011 - Description of Non-GAAP
Financial Measures - C. Adjusted EBITDA" for a description of
Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net
earnings. 
Summary of Key Highlights 


 
--  Achieved vessel utilization of 98.9% and 99.1% for the three and nine
    months ended September 30, 2012, respectively. 
    
--  Paid a quarterly dividend of $0.59375 per Series C preferred share on
    July 30, 2012, representing a distribution of $8.3 million. The dividend
    was paid to all Series C shareholders of record as of July 27, 2012 for
    the period from April 30, 2012 to July 29, 2012. 
    
--  Paid a quarterly dividend of $0.25 per Class A common share on August
    22, 2012 to all shareholders of record as of August 13, 2012. Seaspan
    has increased its quarterly common share dividend by 150% since March
    31, 2010. Seaspan expects common share dividends for the four quarters
    ending December 31, 2012 to total $1.00 per share. 

 
Gerry Wang, Chief Executive Officer, Co-Chairman, and Co-Founder of
Seaspan, commented, "During the third quarter, Seaspan's business
continued to perform as expected. We achieved high utilization,
delivered strong financial results and distributed a sizeable
dividend to shareholders." 
Mr. Wang added, "Our balance sheet strength positions us well to
capitalize on the attractive ship acquisition environment. We remain
committed to our disciplined growth strategy, providing credit worthy
customers with state-of-the-art fuel efficient vessels and creating
long-term value for our shareholders." 
Third Quarter Developments 
Loan Facility Transaction  
On July 3, 2012, three of Seaspan's subsidiaries entered into a
$223.8 million loan facility with a leading Chinese bank relating to
the construction of three 10000 TEU newbuilding vessels. These
vessels are scheduled to be delivered in 2014. Immediately after
delivery, these vessels will commence operations under charters with
Hanjin Shipping Co., Ltd. ("Hanjin")
 for a period of 10 years, plus
an additional two years at the option of Hanjin. Seaspan has
conditionally guaranteed certain financial obligations of its
subsidiaries to the Chinese bank under the loan facility. 
$1.3 Billion Credit Facility Amendment 
On July 6, 2012, Seaspan amended its $1.3 billion credit facility to
(i) reduce the lenders' commitment from $1.3 billion to $1.0 billion,
or by $267.0 million (the undrawn amount under the facility) and (ii)
change the formula for the amount Seaspan would be required to repay
on the removal of a vessel serving as collateral under the facility.
As a result of the foregoing reduction in the lenders' commitment,
Seaspan will now refer to this as its $1.0 billion credit facility.
Seaspan paid an administration fee of $1.95 million to the lenders. 
CSCL Dalian Time Charter  
The CSCL Dalian was re-delivered to Seaspan on July 13, 2012. The
vessel was renamed Seaspan Dalian. On July 26, 2012, the Seaspan
Dalian commenced a time charter with Hyundai Merchant Marine Co.,
Ltd. for a period of up to six months.  
CSCL Felixstowe Time Charter  
The CSCL Felixstowe was re-delivered to Seaspan on August 21, 2012.
The vessel was renamed Seaspan Felixstowe. On September 9, 2012, the
Seaspan Felixstowe commenced a time charter with Orient Overseas
Container Line Ltd. for a period of up to six months. 
Open Market Share Repurchase Plan  
In February 2012, Seaspan's board of directors authorized the
repurchase of up to $50.0 million of its Class A common shares.
During the three months ended September 30, 2012, Seaspan repurchased
94,401 shares under an open market share repurchase plan for an
aggregate of $1.4 million, or an average of $14.87 per share. An
additional $48.3 million is authorized under the plan.  
Subsequent Events  
Dividends  
On October 30, 2012, Seaspan paid a quarterly dividend of $0.59375
per Series C preferred share, representing a total distribution of
$8.3 million. This dividend was paid to all shareholders of record on
October 29, 2012 for the period from July 30, 2012 to October 29,
2012. 
On October 27, 2012, Seaspan declared a quarterly dividend of $0.25
per Class A common share payable to all shareholders of record as of
November 13, 2012. The dividend will be paid on November 23, 2012.  
Results for the Three and Nine Months Ended September 30, 2012  
The following table summarizes vessel utilization for the three and
nine months ended September 30, 2012: 


 
                                    Second                   Year to Date - 
                  First Quarter    Quarter    Third Quarter   September 30  
                  ------------- ------------- ------------- ----------------
                    2012   2011   2012   2011   2012   2011    2012    2011 
                  ------ ------ ------ ------ ------ ------ ------- --------
Vessel                                                                      
 Utilization:                                                               
Ownership Days     5,591  5,087  5,847  5,421  5,980  5,857  17,418  16,365 
Less Off-hire                                                               
 Days:                                                                      
  Scheduled 5-Year                                                          
   Survey            (44)   (53)   (24)   (58)   (12)    (6)    (80)   (117)
  Unscheduled Off-                                                          
   hire(1)            (7)    (2)   (14)    (3)   (56)    (7)    (77)    (12)
                  ------ ------ ------------- ------ ------ ------- --------
Operating Days     5,540  5,032  5,809  5,360  5,912  5,844  17,261  16,236 
                  ------ ------ ------ ------ ------ ------ ------- --------
                  ------ ------ ------ ------ ------ ------ ------- --------
Vessel Utilization  99.1%  98.9%  99.4%  98.9%  98.9%  99.8%   99.1%   99.2%
                  ------ ------ ------ ------ ------ ------ ------- --------
                  ------ ------ ------ ------ ------ ------ ------- --------
                                                                            
------------------                                                          
(1) Unscheduled off-hire includes days related to vessels in between their  
 time-charters. Certain of these days were used to dry-dock such vessels.   

 
Seaspan accepted delivery of 10 vessels during the year ended
December 31, 2011. Seaspan began 2012 with 65 vessels in operation
and during the nine months ended September 30, 2012, accepted
delivery of four vessels, bringing its fleet to a total of 69 vessels
in operation as at September 30, 2012. Revenue is determined
primarily by the number of operating days, and ship operating expense
is determined primarily by the number of ownership days.   
The following table summarizes Seaspan's consolidated financial
results for the three and nine months ended September 30, 2012 and
2011: 


 
                  Three Months                                              
                     Ended                  Nine Months Ended               
                 September 30,    Increase    September 30,      Increase   
                --------------- ----------- ----------------- --------------
                   2012    2011  Days     %     2012     2011    Days      %
                ------- ------- ----- ----- -------- -------- ------- ------
Operating days    5,912   5,844    68  1.2%   17,261   16,236   1,025   6.3%
Ownership days    5,980   5,857   123  2.1%   17,418   16,365   1,053   6.4%
 
 
Financial
 Summary      Three Months                    Nine Months                  
(in millions     Ended                           Ended                    
 of USD)     September 30,      Change       September 30,       Change  
            ------------- ---------------- --------------- ---------------- 
              2012   2011       $        %    2012    2011       $        % 
            ------ ------ ------- -------- ------- ------- ------- -------- 
                                                                            
Revenue     $168.7 $154.8 $  13.8     8.9%  $487.1  $409.5 $  77.6    18.9% 
Ship                                                                        
 operating                                                                  
 expense      35.7   35.9    (0.3)   (0.8%)  101.7    99.8     1.9     1.9% 
Depreciation                                                                
 and                                                                        
 amortization                                                               
 expense      42.5   38.4     4.1    10.8%   122.7   102.2    20.5    20.1% 
General and                                                                 
 administrative                                                             
 expense       5.6    3.9     1.7    42.9%    18.1    11.7     6.5    55.6% 
Operating                                                                   
 lease         2.0      -     2.0   100.0%     2.0       -     2.0   100.0% 
Loss (gain)                                                                 
 on vessels      -    8.9    (8.9) (100.0%)   (9.8)    8.9   (18.7) (209.9%)
Interest                                                                    
 expense      18.5   14.0     4.5    32.4%    54.7    34.8    19.9    57.1% 
Change in                                                                   
 fair value                                                                 
 of                                                                         
 financial                                                                  
 instruments                                                                
 loss         45.8  174.6  (128.7)  (73.7%)  132.6   253.5  (120.9)  (47.7%)

 
Revenue  
Revenue increased by 8.9% and 18.9%, respectively, for the three and
nine months ended September 30, 2012 over the prior year's comparable
periods. This is due to an increase in operating days of 1.2% and
6.3% for the three and nine months ended September 30, 2012,
respectively, over the prior year's comparable periods and higher
time-charter rates attributed to the delivery of Seaspan's larger
newbuild vessels. The increase in operating days and the financial
impact thereof, for the three and nine months ended September 30,
2012 relative to the corresponding periods in 2011, is attributable
to the following:  


 
                         Three Months Ended          Nine Months Ended      
                         September 30, 2012          September 30, 2012     
                    --------------------------- --------------------------- 
                       Operating       $ impact    Operating       $ impact 
                     Days impact  (in millions)  Days impact  (in millions) 
                    ------------ -------------- ------------ -------------- 
2012 vessel                                                                 
 deliveries                  368  $        20.5          724  $        40.4 
Full period                                                                 
 contribution for                                                           
 2011 vessel                                                                
 deliveries                  123            6.1        1,380           66.1 
Changes due to                                                              
 bareboat charters                                                          
 (1)                        (368)          (8.6)      (1,092)         (25.5)
Change in daily                                                             
 charterhire rate              -           (2.8)           -           (3.4)
Change in                                                                   
 charterhire days              -              -           41            1.3 
Scheduled off-hire            (6)             -           37            0.4 
Unscheduled off-hire         (49)          (1.4)         (65)          (1.7)
                    ------------ -------------- ------------ -------------- 
Total                         68  $        13.8        1,025  $        77.6 
                    ------------ -------------- ------------ -------------- 
                    ------------ -------------- ------------ -------------- 
                                                                            
--------------------                                                        
 (1) Seaspan bareboat chartered to Mediterranean Shipping Company S.A., or  
 MSC, four 4800 TEU vessels commencing in the fourth quarter of 2011. These 
 transactions were accounted for as sales-type leases with the vessels being
 deemed disposed of and a gross investment in lease recorded, which is being
 amortized to income through interest income from leasing. In the comparable
 periods in the prior year, the hire payments from the time chartering of   
 these vessels to A.P. Moller-Maersk A/S was included in revenue.           

 
Vessel utilization was 98.9% and 99.1%, for the three and nine months
ended September 30, 2012, respectively, compared to 99.8% and 99.2%
for the three and nine months ended September 30, 2011, respectively. 
The decrease in vessel utilization for the nine months ended
September 30, 2012 was primarily due to a 65 day increase in
unscheduled off-hire. The unscheduled off-hire includes 31 days for
the Seaspan Dalian and Seaspan Felixstowe. While these vessels were
in between time charters, their scheduled dry-dockings were
completed. There was also 22 days of unscheduled off-hire related to
mechanical issues experienced onboard the COSCO Indonesia. During the
nine months ended September 30, 2012, Seaspan completed six
dry-dockings which resulted in 80 days of scheduled off-hire,
compared to the nine months ended September 30, 2011, where Seaspan
completed eight dry-dockings which resulted in 117 days of scheduled
off-hire.  
The dry-dockings Seaspan completed during the nine months ended
September 30, 2012 involved the following vessels: 


 
Vessel                                       Completed
------------------------------------------------------
                                                      
Rio de Janeiro Express                              Q1
CSCL Zeebrugge                                      Q1
COSCO Fuzhou                                        Q1
COSCO Yingkou                                       Q1
CSCL Long Beach                                     Q2
Seaspan Ningbo                                      Q3
Seaspan Dalian (1)                                  Q3
Seaspan Felixstowe (1)                              Q3
--------------------------------------------          
                                                      
(1) Dry-dockings for these vessels were completed in  
 between their time charters, as described above.     

 
Seaspan's cumulative vessel utilization since its initial public
offering in August 2005 is 99.2%.  
Ship Operating Expense  
Prior to Seaspan's acquisition of Seaspan Management Services Limited
(the "Manager"), ship operating expense was comprised of fixed,
daily, per vessel fees paid to the Manager for technical services.
The amount of this technical services fee was established every three
years. As a result of the acquisition, Seaspan's consolidated ship
operating expense now represents the direct operating costs of the
vessels.  


 
($ impact in millions         Three Months             Nine Months          
of USD, except per day      Ended September          Ended September        
 amounts)                         30,       Change         30,       Change 
                            --------------- ------   --------------- ------ 
                               2012    2011      %      2012    2011      % 
                            ------- ------- ------   ------- ------- ------ 
                                                                            
Ship operating expense, as                                                  
 reported                      35.7    35.9   (0.8%)   101.7    99.8    1.9%
Add: General and                                                            
 administrative component of                                                
 technical services fee(1)      3.1       -  100.0%      7.9       -  100.0%
                            ---------------          ---------------        
Adjusted ship operating                                                     
 expense                       38.8    35.9    8.1%    109.6    99.8    9.8%
                                                                            
Ownership days                5,980   5,857    2.1%   17,418  16,365    6.4%
Adjusted ship operating                                                     
 expense per day            $ 6,484 $ 6,135    5.7%  $ 6,291 $ 6,099    3.1%
                                                                            
----------------------------                                                
(1) Prior to the acquisition of the Manager, the entire technical services  
 fee was classified as ship operating expense. After the acquisition of the 
 Manager, the Manager's general and administra
tive expenses that previously 
 would have been included in the technical services fee and reported as ship
 operating expense are now presented as general and administrative expenses.

 
Total ship operating expense for the nine months ended September 30,
2012 of $101.7 million consists of $9.3 million of technical services
fees paid to the Manager during the pre-acquisition period to January
26, 2012, and $92.4 million of direct costs incurred during the
post-acquisition period from January 27 to September 30, 2012.  
The changes in ship operating expense for the three and nine months
ended September 30, 2012 are primarily attributable to the general
and administrative reclassification, as explained above, of
approximately $3.1 million and $7.9 million, respectively, and the
increase in ownership days of 123 days and 1,053 days, respectively.
The increase in adjusted average ship operating expense per vessel
per day of 5.7% and 3.1% for the three and nine months ended
September 30, 2012, respectively, compared to the comparable periods
in the prior year, are favorable relative to our estimate of an
approximate 8.0% increase in average per vessel per day ship
operating expense from the fees charged by the Manager for the year
ending December 31, 2011, and reflects the results of Seaspan's cost
saving initiatives. 
Depreciation and Amortization Expense  
The increase in depreciation and amortization for the three and nine
months ended September 30, 2012, from the corresponding periods in
the prior year is due to the increase in the size of the fleet. Four
vessels delivered in 2012 and a full period of depreciation was taken
for the 10 vessels delivered in 2011, partially offset by the impact
of the disposition of the four MSC bareboat charter vessels and the
disposition of the UASC Madinah.  
General and Administrative Expenses  
The increases of $1.7 million and $6.5 million, respectively, in
general and administrative expenses for the three and nine months
ended September 30, 2012 compared to the corresponding periods of the
prior year, are primarily due to the reclassification of
approximately $3.1 million and approximately $7.9 million,
respectively, of the Manager's general and administrative expense
from ship operating expense. 
Operating Lease Expense 
On June 27, 2012, Seaspan sold the UASC Madinah to a U.S. bank and is
leasing the vessel back for approximately nine years. Prior to June
27, 2012, Seaspan owned the vessel and financed it with a term loan
of $53.0 million which was repaid using the proceeds from the sale to
the U.S. bank. During the three and nine months ended September 30,
2012, Seaspan incurred operating lease expense of $2.0 million. In
the comparable periods of 2011, Seaspan incurred interest expense on
the $53.0 million loan. 
Gain on Vessels 
The $53.0 million term loan credit facility matured on June 27, 2012.
On June 27, 2012, Seaspan sold the UASC Madinah to the U.S. bank for
$52.1 million, the amount outstanding under the term loan which
resulted in a gain on vessel of $9.8 million. The proceeds of this
sale were used to fully repay the term loan. 
Interest Expense  
As at September 30, 2012, the balance of Seaspan's long-term debt was
$3.1 billion and Seaspan's other long-term liabilities was $661.5
million. Interest expense is comprised primarily of interest incurred
on long-term debt and other long-term liabilities for operating
vessels and a reclassification of amounts from accumulated other
comprehensive income related to previously designated hedging
relationships. Interest incurred on long-term debt and other
long-term liabilities for Seaspan's vessels under construction is
capitalized to the cost of the respective vessels under construction.
Seaspan's long-term debt and other long-term liabilities bear
interest primarily at variable rates calculated by reference to LIBOR
plus applicable margins.  
The increases in interest expense for the three and nine months ended
September 30, 2012, were primarily due to the increases in average
operating debt and other long-term liabilities attributed to the
delivery of four 13100 TEU newbuild vessels in 2012 and higher
average LIBOR compared to the respective periods in the prior year.
The average LIBOR charged on Seaspan's long-term debt and other
long-term liabilities for the three and nine months ended September
30, 2012 was 0.4% and 0.5%, compared to 0.3% and 0.4% for the
comparable periods in the prior year. Although Seaspan has entered
into fixed interest rate swaps for much of its variable rate debt,
the difference between the variable interest rate and the swapped
fixed-rate on operating debt is recorded in Seaspan's change in fair
value of financial instruments.  
Change in Fair Value of Financial Instruments  
The change in fair value of financial instruments resulted in losses
of $45.8 million and $132.6 million for the three and nine months
ended September 30, 2012, respectively, compared to losses of $174.6
million and $253.5 million for the comparable periods last year. The
decreases in change in fair value for the three and nine months ended
September 30, 2012 were primarily due to decreases in the forward
LIBOR curve. The fair value of interest rate swap and swaption
agreements is subject to change based on the counterparty and
Seaspan's company-specific credit risk included in the discount
factor and the interest rate implied by the current swap curve,
including its relative steepness. In determining the fair value,
these factors are based on current information available to Seaspan.
These factors are expected to change through the life of the
instruments, causing the fair value to fluctuate significantly due to
the large notional amounts and long-term nature of Seaspan's
derivative instruments. As these factors may change, the fair value
of the instruments is an estimate and may deviate significantly from
the actual cash settlements realized over the term of the
instruments. Seaspan's valuation techniques have not changed and
remain consistent with those followed by other valuation
practitioners. 
About Seaspan  
Seaspan provides many of the world's major shipping lines with an
attractive outsourced alternative to vessel ownership by offering
long-term leases on large, modern containerships combined with
industry-leading ship management and a reputation for safety, quality
and innovation. Seaspan's managed fleet consists of 76 containerships
representing a total capacity of approximately 475,000 TEU, including
7 ships scheduled for delivery by the end of 2015. Seaspan's current
operating fleet of 69 vessels has an average age of approximately
five years and an average remaining lease period of approximately
seven years.  
Seaspan's common shares are listed on The New York Stock Exchange
under the symbol "SSW".  
Seaspan's Series C Preferred Shares are listed on The New York Stock
Exchange under the symbol "SSW PR C".  
Conference Call and Webcast  
Seaspan will host a conference call and webcast presentation for
investors and analysts to discuss its results for the three and nine
months ended September 30, 2012 on October 31, 2012 at 7:00 a.m. PT /
10:00 a.m. ET. Participants should call 1-877-246-9875 (US/Canada) or
1-707-287-9353 (International) and request the Seaspan call. A
telephonic replay will be available for anyone unable to participate
in the live call. To access the replay, call 1-855-859-2056 or
1-404-537-3406 and enter the replay passcode: 55291488. The recording
will be available from October 31, 2012 at 10:00 a.m. PT / 1:00 p.m.
ET through 8:59 p.m. PT / 11:59 p.m. ET on November 13, 2012. The
conference call will also be broadcast live over the Internet and
will include a slide presentation. To access the live webcast and
slide presentation, go to www.seaspancorp.com and click on "News &
Events" and then "Events & Presentations" for the link. The webcast
and slides will be archived on the site for one year. 


 
                             SEASPAN CORPORATION        
                    
                    UNAUDITED CONSOLIDATED BALANCE SHEET                    
                           AS OF SEPTEMBER 30, 2012                         
                        (IN THOUSANDS OF US DOLLARS)                        
                                                                            
                                              September 30,    December 31, 
                                                       2012            2011 
                                            --------------- --------------- 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents                   $     273,000   $     481,123 
  Short term investments                             35,485               - 
  Accounts receivable                                 7,611           6,837 
  Prepaid expenses                                   24,195          17,398 
  Gross investment in lease                          14,600          14,640 
                                            --------------- --------------- 
                                                    354,891         519,998 
                                                                            
Vessels                                           4,827,943       4,289,331 
Vessels under construction                           76,146         407,918 
Deferred charges                                     48,307          45,917 
Gross investment in lease                            84,878          95,798 
Goodwill                                             66,662               - 
Other assets                                         72,992          88,754 
Fair value of financial instruments                  38,760               - 
                                            --------------- --------------- 
                                              $   5,570,579   $   5,447,716 
                                            --------------- --------------- 
                                            --------------- --------------- 
                                                                            
Liabilities and Shareholders' Equity                                        
Current liabilities:                                                        
  Accounts payable and accrued liabilities    $      46,680   $      47,400 
  Current portion of deferred revenue                24,674          23,257 
  Current portion of long-term debt                  73,197          81,482 
  Current portion of other long-term                                        
   liabilities                                       38,481          37,649 
                                            --------------- --------------- 
                                                    183,032         189,788 
                                                                            
Deferred revenue                                      8,991          12,503 
Long-term debt                                    3,023,935       2,914,247 
Other long-term liabilities                         623,025         583,263 
Fair value of financial instruments                 633,402         564,490 
                                            --------------- --------------- 
                                                  4,472,385       4,264,291 
                                                                            
Share capital                                           772             838 
Treasury shares                                        (301)              - 
Additional paid in capital                        1,775,392       1,860,979 
Deficit                                            (628,889)       (622,406)
Accumulated other comprehensive loss                (48,780)        (55,986)
                                            --------------- --------------- 
Total shareholders' equity                        1,098,194       1,183,425 
                                            --------------- --------------- 
                                                                            
                                              $   5,570,579   $   5,447,716 
                                            --------------- --------------- 
                                            --------------- --------------- 
                                                                            
                                                                            
                             SEASPAN CORPORATION                            
  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT FOR THE THREE 
              AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011             
      (IN THOUSANDS OF US DOLLARS, EXCEPT SHARE AND PER SHARE AMOUNTS)      
                                                                            
                               Three Months Ended      Nine Months Ended    
                                 September 30,           September 30,      
                            ----------------------- ----------------------- 
                                   2012        2011        2012        2011 
                            ----------- ----------- ----------- ----------- 
                                                                            
Revenue                      $  168,667  $  154,826  $  487,077  $  409,493 
                                                                            
Operating expenses:                                                         
  Ship operating                 35,650      35,930     101,715      99,805 
  Depreciation and                                                          
   amortization                  42,527      38,378     122,742     102,200 
  General and administrative      5,618       3,932      18,139      11,658 
  Operating lease                 2,035           -       2,035           - 
  Loss (gain) on vessels              -       8,890      (9,773)      8,890 
                            ----------- ----------- ----------- ----------- 
                                 85,830      87,130     234,858     222,553 
                            ----------- ----------- ----------- ----------- 
                                                                            
Operating earnings               82,837      67,696     252,219     186,940 
                                                                            
Other expenses (income):                                                    
  Interest expense               18,531      13,998      54,663      34,801 
  Interest income                  (299)       (144)       (928)       (471)
  Interest income from                                                      
   leasing                       (1,275)          -      (3,934)          - 
  Undrawn credit facility                                                   
   fees                             145         952       1,348       3,434 
  Amortization of deferred                                                  
   charges                        1,877         917       5,643       2,568 
  Change in fair value of                                                   
   financial instruments         45,847     174,580     132,607     253,525 
  Equity loss on investment          83           -         217           - 
  Other expenses                    115           -         281           - 
                            ----------- ----------- ----------- ----------- 
                                 65,024     190,303     189,897     293,857 
                            ----------- ----------- ----------- ----------- 
                                                                            
Net earnings (loss)          $   17,813  $ (122,607) $   62,322  $ (106,917)
                                                          
                  
Deficit, beginning of period   (622,454)   (483,179)   (622,406)   (469,616)
  Dividends - common shares     (15,730)    (12,942)    (43,185)    (34,425)
  Dividends - Series B                                                      
   preferred shares                   -        (617)          -      (1,813)
  Dividends - Series C                                                      
   preferred shares              (8,313)     (7,825)    (24,938)    (13,894)
Amortization of Series C                                                    
 issuance costs                    (205)       (170)       (682)       (675)
                            ----------- ----------- ----------- ----------- 
Deficit, end of period       $ (628,889) $ (627,340) $ (628,889) $ (627,340)
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
                                                                            
Weighted average number of                                                  
 shares, basic                   62,664      69,257      62,989      69,045 
Weighted average number of                                                  
 shares, diluted                 64,201      69,257      64,377      69,045 
                                                                            
Earnings (loss) per share,                                                  
 basic and diluted           $     0.01  $    (2.01) $     0.18  $    (2.19)
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
                                                                            
                                                                            
                             SEASPAN CORPORATION                            
 UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS FOR THE 
           THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011          
                         (IN THOUSANDS OF US DOLLARS)                       
                                                                            
                                Three Months Ended      Nine Months Ended   
                                   September 30,          September 30,     
                              ---------------------- ---------------------- 
                                    2012        2011       2012        2011 
                              ---------- ----------- ---------- ----------- 
                                                                            
Net earnings (loss)            $  17,813  $ (122,607) $  62,322  $ (106,917)
                                                                            
Other comprehensive income:                                                 
  Amounts reclassified to                                                   
   earnings (loss) during the                                               
   period, relating to cash                                                 
   flow hedging instruments        2,086       2,933      7,206       9,312 
                              ---------- ----------- ---------- ----------- 
                                                                            
Comprehensive income (loss)    $  19,899  $ (119,674) $  69,528  $  (97,605)
                              ---------- ----------- ---------- ----------- 
                              ---------- ----------- ---------- ----------- 
                                                                            
                                                                            
                             SEASPAN CORPORATION                            
              UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS               
       FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011      
                         (IN THOUSANDS OF US DOLLARS)                       
                                                                            
                               Three Months Ended      Nine Months Ended    
                                 September 30,           September 30,      
                            ----------------------- ----------------------- 
                                   2012        2011        2012        2011 
                            ----------- ----------- ----------- ----------- 
Cash from (used in):                                                        
Operating activities:                                                       
 Net earnings (loss)         $   17,813  $ (122,607) $   62,322  $ (106,917)
 Items not involving cash:                                                  
  Depreciation and                                                          
   amortization                  42,527      38,378     122,742     102,200 
  Share-based compensation          901       1,014       3,430       2,266 
  Amortization of deferred                                                  
   charges                        1,877         917       5,643       2,568 
  Amounts reclassified from                                                 
   other comprehensive loss                                                 
   to interest expense            1,859       2,784       6,595       8,970 
  Unrealized change in fair                                                 
   value of financial                                                       
   instruments                   14,581     142,496      40,152     160,742 
  Loss (gain) on vessels              -       8,890      (9,773)      8,890 
  Equity loss on investment          83           -         217           - 
Changes in assets and                                                       
 liabilities                      2,373      (9,827)     (7,360)    (20,061)
                            ----------- ----------- ----------- ----------- 
Cash from operating                                                         
 activities                      82,014      62,045     223,968     158,658 
                            ----------- ----------- ----------- ----------- 
                                                                            
Financing activities:                                                       
 Preferred shares issued,                                                   
  net of share issue costs            -         (89)          -     344,567 
 Draws on credit facilities           -     544,863     113,672     547,160 
 Repayment of credit                                                        
  facilities                    (27,394)       (366)    (38,380)       (366)
 Shares repurchased,                                                        
  including related expenses     (1,403)          -    (172,341)          - 
 Repayment of other long-                                                   
  term liabilities              (10,618)     (6,210)    (43,602)    (11,910)
 Financing fees                  (3,797)     (6,941)     (3,615)     (8,008)
 Dividends on common shares     (14,793)     (9,378)    (36,972)    (25,004)
 Dividends on preferred                                                     
  shares                         (8,313)     (8,151)    (24,938)    (14,866)
 Swaption premium payment       (10,000)          -     (10,000)          - 
                            ----------- ----------- ----------- ----------- 
Cash from (used in)                                                         
 financing activities           (76,318)    513,728    (216,176)    831,573 
                            ----------- ----------- ----------- ----------- 
                                                                            
Investing activities:                                                       
 Expenditures for vessels       (45,864)   (302,906)   (210,
139)   (602,171)
 Short-term investments         (25,049)          -     (35,123)          - 
 Cash acquired on                                                           
  acquisition of Manager              -           -      23,911           - 
 Restricted cash                      -      (5,000)      5,000           - 
 Intangible assets                  (94)       (944)        436      (2,528)
 Investment in affiliate              -      (4,015)          -      (4,015)
                            ----------- ----------- ----------- ----------- 
Cash used in investing                                                      
 activities                     (71,007)   (312,865)   (215,915)   (608,714)
                            ----------- ----------- ----------- ----------- 
                                                                            
Increase (decrease) in cash                                                 
 and cash equivalents           (65,311)    262,908    (208,123)    381,517 
Cash and cash equivalents,                                                  
 beginning of period            338,311     152,828     481,123      34,219 
                            ----------- ----------- ----------- ----------- 
Cash and cash equivalents,                                                  
 end of period               $  273,000  $  415,736  $  273,000  $  415,736 
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
                                                                            
                                                                            
                             SEASPAN CORPORATION                            
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES               
       FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011      
                         (IN THOUSANDS OF US DOLLARS)                       

 
Description of Non-GAAP Financial Measures  
A. Cash Available for Distribution to Common Shareholders  
Cash available for distribution to common shareholders is defined as
net earnings adjusted for depreciation and amortization, interest
expense, amortization of deferred charges, non-cash share-based
compensation, change in fair value of financial instruments, bareboat
charter adjustment, organizational development costs, amounts paid
for dry-docking, cash dividends paid on preferred shares, losses
(gains) on vessels, interest expense at the hedged rate and certain
other items that Seaspan believes are not representative of its
operating performance.  
Cash available for distribution to common shareholders is a non-GAAP
measure used to assist in evaluating Seaspan's ability to make
quarterly cash dividends before reserves for replacement capital
expenditures. Cash available for distribution to common shareholders
is not defined by United States generally accepted accounting
principles ("GAAP") and should not be considered as an alternative to
net earnings or any other indicator of Seaspan's performance required
to be reported by GAAP. 


 
                                Three Months Ended      Nine Months Ended   
                                   September 30,          September 30,     
                              ---------------------- ---------------------- 
                                    2012        2011       2012        2011 
                              ---------- ----------- ---------- ----------- 
                                                                            
Net earnings (loss)            $  17,813  $ (122,607) $  62,322  $ (106,917)
Add:                                                                        
  Depreciation and                                                          
   amortization                   42,527      38,378    122,742     102,200 
  Interest expense                18,531      13,998     54,663      34,801 
  Amortization of deferred                                                  
   charges                         1,877         917      5,643       2,568 
  Share-based compensation           901       1,014      3,430       2,266 
  Change in fair value of                                                   
   financial instruments          45,847     174,580    132,607     253,525 
  Bareboat charter adjustment,                                              
   net (1)                         2,405           -      7,026           - 
  Organizational development                                                
   costs (2)                         197           -      1,159           - 
 Less:                                                                      
  Amounts paid for dry-dock                                                 
   adjustment                     (3,194)     (1,871)    (6,954)     (6,299)
  Series B preferred share                                                  
   dividends paid (3)                  -        (327)         -        (972)
  Series C preferred share                                                  
   dividends paid and                                                       
   accumulated (3)                (8,313)     (8,313)   (24,938)    (19,356)
  Loss (gain) on vessels (4)           -       8,890     (9,773)      8,890 
                              ---------- ----------- ---------- ----------- 
 Net cash flows before                                                      
 interest payments               118,591     104,659    347,927     270,706 
Less:                                                                       
Interest expense at the hedged                                              
 rate (5)                        (48,780)    (40,729)  (136,363)   (102,346)
                              ---------- ----------- ---------- ----------- 
Cash available for                                                          
 distribution to common                                                     
 shareholders                  $  69,811  $   63,930  $ 211,564  $  168,360 
                              ---------- ----------- ---------- ----------- 
                              ---------- ----------- ---------- ----------- 
                     
                             SEASPAN CORPORATION                            
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES               
      FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011       
       (IN THOUSANDS OF US DOLLARS, EXCEPT SHARE AND PER SHARE AMOUNTS)     

 
B. Normalized Net Earnings and Normalized Earnings per Share  
Normalized net earnings is defined as net earnings adjusted for items
such as interest expense, change in fair value of financial
instruments, interest expense at the hedged rate, organizational
development costs, losses (gains) on vessels and certain other items
Seaspan believes affect the comparability of operating results.
Normalized net earnings is a useful measure because it excludes those
items that Seaspan believes are not representative of its operating
performance.  
Normalized net earnings is not defined by GAAP and should not be
considered as an alternative to net earnings or any other indicator
of Seaspan's performance required to be reported by GAAP.  
Normalized earnings per share, converted, is calculated as normalized
net earnings, less dividends on Series B (until their repurchase on
November 30, 2011) and Series C preferred shares, divided by the
"converted" number of shares outstanding for the period. The Series A
preferred shares automatically convert to Class A common shares at a
price of $15.00 per share at any time on or after January 31, 2014 if
the trailing 30-day average trading price of the common shares is
equal to or above $15.00. If the share price is less than $15.00,
Seaspan can choose to not convert the preferred shares and to
increase the annual increase in the liquidati
on preference to 15% per
annum from 12%. The "converted" number of shares includes: basic
weighted average number of shares, share-based compensation, and the
impact of the Series A preferred shares converted at $15.00 per
share. This method reflects Seaspan's ability to control the
conversion if the share price is less than $15.00 and the per share
impact of the preferred shares conversion at $15.00.  
Normalized earnings per share, basic, can be computed as normalized
net earnings attributable to common shareholders divided by the
weighted-average number of shares used to compute reported earnings
per share, basic.  
Normalized earnings per share, converted, diluted, and basic are not
defined by GAAP and should not be considered as an alternative to
earnings per share or any other indicator of Seaspan's performance
required to be reported by GAAP. 


 
                             SEASPAN CORPORATION                            
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES               
       FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011      
      (IN THOUSANDS OF US DOLLARS, EXCEPT SHARE AND PER SHARE AMOUNTS)      

 
B. Normalized Net Earnings and Normalized Earnings per Share
(continued) 


 
                              Three Months Ended       Nine Months Ended    
                                 September 30,            September 30,     
                            ----------------------- ----------------------- 
                                   2012        2011        2012        2011 
                            ----------- ----------- ----------- ----------- 
                                                                            
Net earnings (loss)          $   17,813  $ (122,607) $   62,322  $ (106,917)
Adjust:                                                                     
 Interest expense                18,531      13,998      54,663      34,801 
 Change in fair value of                                                    
  financial instruments          45,847     174,580     132,607     253,525 
 Organizational development                                                 
  costs (2)                         197           -       1,159           - 
 Loss (gain) on vessels (4)           -       8,890      (9,773)      8,890 
 Interest expense at the                                                    
  hedged rate (5)               (48,780)    (40,729)   (136,363)   (102,346)
                            ----------- ----------- ----------- ----------- 
Normalized net earnings      $   33,608  $   34,132  $  104,615  $   87,953 
                            ----------- ----------- ----------- ----------- 
Less: preferred share                                                       
 dividends                                                                  
 Series A                         8,717       7,742      25,216      22,319 
 Series B                             -         617           -       1,813 
 Series C (including                                                        
  amortization of issuance                                                  
  costs)                          8,518       8,485      25,620      20,031 
                            ----------- ----------- ----------- ----------- 
                                 17,235      16,844      50,836      44,163 
                            ----------- ----------- ----------- ----------- 
Normalized net earnings                                                     
 attributable to common                                                     
 shareholders                $   16,373  $   17,288  $   53,779  $   43,790 
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
Weighted average number of                                                  
 shares used to compute                                                     
 earnings (loss) per share                                                  
Reported and normalized,                                                    
 basic                           62,664      69,257      62,989      69,045 
 Share-based compensation           248         125         219         123 
 Contingent consideration           703           -         638           - 
 Shares held in escrow              586           -         531           - 
 Series A preferred shares                                                  
  liquidation preference                                                    
  converted at $15               19,502      17,322      18,939      16,823 
                            ----------- ----------- ----------- ----------- 
Normalized, converted            83,703      86,704      83,316      85,991 
 Series A preferred shares                                                  
  115% premium (30-day                                                      
  trailing average)                   -       3,178           -       1,059 
                            ----------- ----------- ----------- ----------- 
Reported, diluted (6)            83,703      89,882      83,316      87,050 
                            ----------- ----------- ----------- ----------- 
Earnings (loss) per share:                                                  
 Reported, basic and diluted $     0.01  $    (2.01) $     0.18  $    (2.19)
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
 Normalized, converted -                                                    
  preferred shares converted                                                
  at $15 (7)                 $     0.30  $     0.29  $     0.95  $     0.77 
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 
                                                                            
                                                                            
                             SEASPAN CORPORATION                            
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES               
       FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011      
            (IN THOUSANDS OF US DOLLARS, EXCEPT PER SHARE AMOUNTS)          

 
C. Adjusted EBITDA  
Adjusted EBITDA is defined as net earnings before interest expense
and other debt-related expenses, income tax expense, interest income,
depreciation and amortization, bareboat charter adjustment,
organizational development costs, losses (gains) on vessels, change
in fair value of financial instruments and certain other items that
Seaspan believes are not representative of its operating performance. 
Adjusted EBITDA provides useful information to investors in assessing
Seaspan's results of operations. Seaspan believes that this measure
is useful in assessing performance and highlighting trends on an
overall basis. Seaspan also believes that this measure can be useful
in comparing its results with those of other companies. The GAAP
measure most directly comparable to Adjusted EBITDA is net earnings.
Adjusted EBITDA is not defined by GAAP and should not be considered
as an alternative to net earnings or any other indicator of Seaspan's
performance required to be reported by GAAP. 


 
                               Three Months Ended      Nine Months Ended    
                                 September 30,           September 30,      
                            ----------------------- ----------------------- 
                                   2012        2011        2012        2011 
                            ----------- ----------- ----------- ----------- 
                                                                            
Net earnings (loss)          $   17,813  $ (122,607) $   62,322  $ (106,917)
Ad
d:                                                                        
 Interest expense                18,531      13,998      54,663      34,801 
 Interest income                   (299)       (144)       (928)       (471)
 Undrawn credit facility                                                    
  fees                              145         952       1,348       3,434 
 Depreciation and                                                           
  amortization                   42,527      38,378     122,742     102,200 
 Amortization of deferred                                                   
  charges                         1,877         917       5,643       2,568 
 Bareboat charter                                                           
  adjustment, net (1)             2,405           -       7,026           - 
 Organizational development                                                 
  costs (2)                         197           -       1,159           - 
 Loss (gain) on vessels (4)           -       8,890      (9,773)      8,890 
 Change in fair value of                                                    
  financial instruments          45,847     174,580     132,607     253,525 
                            ----------- ----------- ----------- ----------- 
Adjusted EBITDA              $  129,043  $  114,964  $  376,809  $  298,030 
                            ----------- ----------- ----------- ----------- 
                            ----------- ----------- ----------- ----------- 

 
(1) In the second half of 2011, Seaspan entered into agreements to
bareboat charter to MSC four 4800 TEU vessels for a five year term,
beginning from vessel delivery dates that occurred in 2011. Upon
delivery of the vessels to MSC, the transactions were accounted for
as sales-type leases. The vessels were disposed of and a gross
investment in leases was recorded, which is being amortized to income
through interest income from leasing. The bareboat charter adjustment
is included to reverse the GAAP accounting treatment and reflect the
transaction as if the vessels had not been disposed of. Therefore,
the bareboat charter fees are added back and the interest income from
leasing is deducted resulting in a net bareboat charter adjustment. 
(2) Organizational development costs include professional fees and
integration costs related to the acquisition of the Manager. 
(3) Dividends related to the Series B and Series C preferred shares
have been deducted as they reduce cash available for distribution to
common shareholders. All outstanding Series B preferred shares were
redeemed on November 30, 2011. 
(4) Gains or losses on disposal of vessels are excluded from the
calculation. Included in the current period adjustment is the gain on
sale of vessel that resulted from the sale of the Madinah to a U.S.
bank on June 27, 2012. Included in the prior period adjustment is the
loss on vessels that resulted from the York and Maersk Moncton as a
result of the bareboat charters which is considered a sales-type
lease and accounted for as a disposition upon delivery of the vessels
in October 2011.  
(5) Interest expense at the hedged rate is calculated as the interest
incurred on operating debt at the fixed rate on the related interest
rate swaps plus the applicable margin on the related credit
facilities and variable rate leases, on an accrual basis. Interest
expense on fixed rate leases is calculated on the effective interest
rate. 
(6) If the effect of Series A preferred shares is anti-dilutive,
their effect is excluded from the computation of reported diluted
earnings per share. 
(7) Normalized earnings per share, converted, increased for the three
and nine months ended September 30, 2012 as detailed in the table
below: 


 
                                                Three Months    Nine Months 
                                                      Ended,         Ended, 
                                                September 30   September 30 
                                              ----------------------------- 
                                                                            
Normalized earnings per share, converted-                                   
 preferred shares converted at $15, September                               
 30, 2011                                       $       0.29   $       0.77 
                                                                            
Excluding share count changes:                                              
 Increase (decrease) in normalized earnings            (0.01)          0.19 
 Increase (decrease) from impact of Series B                                
  and C preferred shares                                0.01          (0.04)
                                                                            
Share count changes:                                                        
 Decrease in converted share count (from                                    
  86,704 to 83,703 and from 85,991 to 83,316                                
  for the three and nine months ended,                                      
  respectively)                                         0.01           0.03 
                                              -------------- -------------- 
                                                                            
Normalized earnings per share, converted-                                   
 preferred shares converted at $15, September                               
 30, 2012                                       $       0.30   $       0.95 
                                              -------------- -------------- 
                                              -------------- -------------- 

 
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 
This release contains certain forward-looking statements (as such
term is defined in Section 21E of the Securities Exchange Act of
1934, as amended), which reflect management's current views with
respect to certain future events and performance, including, in
particular, statements regarding: future operating results; expansion
of Seaspan's business; future dividends; the effects of the
acquisition of the Manager on Seaspan and its operations and results,
including, among other things, on ship operating expenses and general
and administrative expenses; repurchases of Seaspan common shares
under its share repurchase program; vessel deliveries; vessel
financing arrangements; and Seaspan's capital requirements. Although
these statements are based upon assumptions Seaspan believes to be
reasonable, they are subject to risks and uncertainties. These risks
and uncertainties include, but are not limited to: the availability
to Seaspan of containership acquisition opportunities; the
availability and cost to Seaspan of financing to pursue growth
opportunities; integration of the Manager acquisition and the number
of additional vessels managed by the Manager in the future;
chartering rates; conditions in the containership market; increased
operating expenses; the number of off-hire days; dry-docking
requirements; Seaspan's ability to borrow funds under its credit
facilities and to obtain additional financing in the future;
Seaspan's future cash flows and its ability to make dividend and
other payments; the time that it may take to construct new ships;
Seaspan's continued ability to enter into primarily long-term,
fixed-rate time charters with customers; changes in governmental
rules and regulations or actions taken by regulatory authorities; the
financial condition of shipyards, charterers, lenders, refund
guarantors and other counterparties and their ability to perform
their obligations under their agreements with Seaspan; the potential
for early termination of long-term contracts and Seaspan's potential
inability to renew or replace long-term contracts; conditions in the
public equity markets and the price of Seaspan's common shares; and
other factors detailed from time to time in 
Seaspan's periodic
reports and filings with the Securities and Exchange Commission,
including Seaspan's Report on Form 20-F for the year ended December
31, 2011. Seaspan expressly disclaims any obligation to update or
revise any of these forward-looking statements, whether because of
future events, new information, a change in Seaspan's views or
expectations, or otherwise. 
Contacts:
Seaspan Corporation - Investor Relations Inquiries
Mr. Sai W. Chu
Chief Financial Officer
604-638-2575
604-648-9782 (FAX)
www.seaspancorp.com 
The IGB Group - Media Inquiries
Mr. Leon Berman
212-477-8438