Capital Product Partners L.P. Announces Fourth Quarter 2012 Financial Results and Charter Extension for M/T Amore Mio II

Capital Product Partners L.P. Announces Fourth Quarter 2012 Financial Results 
and Charter Extension for M/T Amore Mio II 
ATHENS, GREECE -- (Marketwire) -- 01/31/13 --  Capital Product
Partners L.P. (the "Partnership" or "CPLP") (NASDAQ: CPLP), an
international owner of modern tanker, dry bulk and container vessels
today released its financial results for the fourth quarter ended
December 31, 2012.  
The Partnership's net loss for the quarter ended December 31, 2012,
was $35.0 million, including an impairment charge of $43.2 million
(the "Impairment Charge"); excluding the Impairment Charge a net
income of $8.2 million would have been reported. The Impairment
Charge, which is a non cash item, represents the difference between
the carrying values and the fair market values of the M/T 'Alexander
the Great' and the M/T 'Achilleas' on the date they were sold by CPLP
to our Sponsor, Capital Maritime & Trading Corp ("Capital Maritime"
or "CMTC") in exchange for the M/V 'Archimidis' and the M/V
'Agamemnon', respectively, which was effected on December 22, 2012
and announced on January 7, 2013.  
After taking into account the $3.3 million preferred interest in net
income attributable to the holders of 15,555,554 Class B Convertible
Preferred Units issued during the second quarter of 2012 (the "Class
B Units" and the "Class B Unitholders"), the result was a $0.55 net
loss per limited partnership unit, which is $0.61 lower than the
$0.06 net income per unit from the previous quarter ended September
30, 2012, and $0.57 lower than the $0.02 net income per unit in the
fourth quarter of 2011. If the reductions in income resulting from
the preferred interest in income attributable to the Class B
Unitholders and the Impairment Charge were excluded, the result per
limited partnership unit for the quarter ended December 31, 2012,
would have been a net income of $0.12, an improvement to the $0.02
net income per unit in the fourth quarter of 2011.  
Operating surplus for the quarter ended December 31, 2012, was $22.5
million, which is $0.6 million higher than the $21.9 million from the
third quarter of 2012, and $6.7 million higher than the $15.8 million
from the fourth quarter of 2011. The operating surplus adjusted for
the payment of distributions to the Class B Unitholders was $1
9.2
million for the quarter ended December 31, 2012. Operating surplus is
a non-GAAP financial measure used by certain investors to measure the
financial performance of the Partnership and other master limited
partnerships. Please refer to the section "Appendix A" at the end of
the press release, for a reconciliation of this non-GAAP measure to
net loss. 
Revenues for the fourth quarter of 2012 were $38.3 million, including
$0.3 million in profit sharing revenues, compared to $44.0 million in
the fourth quarter of 2011. The Partnership's higher revenues in the
fourth quarter of 2011 reflect primarily the fact that following the
acquisition of Crude Carriers on September 30, 2011 a number of the
Partnership's vessels were trading under voyage charters earning
voyage income of $9.7 million, compared to $0.0 voyage income in the
fourth quarter of 2012. 
Total expenses for the fourth quarter of 2012 were $69.5 million
compared to $35.3 million in the fourth quarter of 2011, primarily
driven by an increase in expense resulting from the Impairment Charge
and a decrease in voyage expenses, as the Partnership's vessels were
trading under period charters during the fourth quarter of 2012. The
vessel operating expenses for the fourth quarter of 2012 amounted to
$11.2 million compared to $11.9 million in the fourth quarter of
2011, including a $4.7 million charge by a subsidiary of our Sponsor,
Capital Maritime, for the commercial and technical management of our
fleet under the terms of our management agreements, compared to $7.8
million in the fourth quarter of 2011. The total expenses for the
fourth quarter of 2012 also include $12.0 million in depreciation,
compared to $12.3 million in the fourth quarter of 2011. General and
administrative expenses for the fourth quarter of 2012 amounted to
$2.3 million, which include a $0.8 million non-cash charge related to
the Partnership's Omnibus Incentive Compensation Plans.  
Total other expense, net for the fourth quarter of 2012 amounted to
$3.8 million compared to $7.6 million for the fourth quarter of 2011,
as the result of the decrease in the interest expense and finance
cost for the fourth quarter of 2012, which reflects the expiration of
certain interest rate swaps and the reduction of the Partnership's
total debt when compared to the fourth quarter of 2011. 
As of December 31, 2012, the Partners' capital amounted to $573.8
million, which is $56.5 million higher than the Partners' capital as
of December 31, 2011. This increase primarily reflects the issuance
of the 15,555,554 Class B Units, which raised gross proceeds of
approximately $140.0 million, combined with the payment of $73.3
million in common and Class B distributions since December 31, 2011
and the net loss for the fourth quarter of 2012. 
As of December 31, 2012, the Partnership's total debt had decreased
by $175.2 million to $458.4 million, compared to total debt of $633.6
million as of December 31, 2011. In connection with the issuance of
the Class B Units, the Partnership executed amendments to its three
credit facilities and prepaid debt of $149.6 million, also utilizing
part of its cash balances. The amendments provide for a deferral of
all remaining scheduled amortization payments that were due between
2012 and 2015 (inclusive) under each of the Partnership's credit
facilities until March 31, 2016. As of December 31, 2012, the
Partnership had swapped $59.1 million of its debt into fixed rates,
whereas the remaining $399.3 million of its total debt of $458.4
million is in floating rates.  
One Year Time Charter Extension for Amore Mio II And Other Fleet
Developments 
BP Singapore Pte Ltd (BP Singapore) has extended the time charter
employment of the M/T 'Amore Mio II' (159,982 dwt, built 2001 by
Daewoo Shipbuilding and Marine Engineering Co., Ltd., South Korea)
for floating storage, at a gross rate of $17,500 per day from March
2013 until February 2014 (inclusive of charterer's option to extend
for a further 3 months).  
On January 7, 2013, the Partnership announced the acquisition of two
post panamax container vessels, the M/V 'Archimidis' (7,943TEU, built
2006 Daewoo Shipbuilding, S. Korea) and the M/V 'Agamemnon'
(7,943TEU, built 2007 Daewoo Shipbuilding, S. Korea). Both the M/V
'Archimidis' and the M/V 'Agamemnon' are employed on time charters
with the industry leader A.P. Moller-Maersk A.S. ("Maersk Line") at a
gross daily rate of $34,000 per day with earliest redelivery in
November 2015 and August 2015, respectively. Maersk Line has the
option to extend the charter of both vessels for an additional four
years at a gross daily rate of $31,500 and $30,500 per day,
respectively for the fourth and fifth year and $32,000 per day for
the final two years. If all options were to be exercised, the
employment of the vessels would extend to July 2019 for the M/V
'Agamemnon' and December 2019 for the M/V 'Archimidis'. 
As consideration for the acquisition of the two container vessels,
CPLP contributed the VLCC tankers M/T 'Alexander The Great' (297,958
dwt, built 2010 Universal Shipbuilding Corporation, Japan) and M/T
'Achilleas' (297,863 dwt, built 2010 Universal Shipbuilding
Corporation, Japan) to CMTC, both of which were under charter to CMTC
at $28,000 per day.  
The tran
saction was unanimously recommended by the Partnership's
Conflicts Committee and unanimously approved by the Partnership's
Board. The effective date of the transaction was December 22, 2012. 
On January 7, 2013, the Partnership also announced that the M/T
'Arionas' (36,725dwt, Ice 1A IMO II/III, built 2006 Hyundai Mipo
Dockyard Co Ltd) has extended its employment with CMTC for an
additional 12 months (+/- 30 days) at an increased gross rate of
$13,800 per day with earliest expected redelivery in September 2013. 
As of December 31, 2012 the Partnership had three IMO II/III
Chemical/Product tankers (M/T Alexandros II, M/T Aristotelis II and
M/T Aris II, all built in 2008 by STX Offshore & Shipbuilding Co.
Ltd.) on long term bareboat charters to subsidiaries of Overseas
Shipholding Group Inc. ("OSG"). These charters were scheduled to
terminate, approximately, in February, July and September of 2018,
respectively, and are at rates that are substantially above current
market rates. On November 14, 2012, OSG made a voluntary filing for
relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Delaware. OSG has requested that
the Partnership reduce the charter rates for their remaining terms to
substantially lower rates. The Partnership has been in discussions
with OSG regarding this matter. No assurance can be given that we
will reach an agreement with OSG regarding the remaining duration,
rate and terms of the charters, or our rights in the bankruptcy
proceeding, or, if any such agreement is reached, that it will be
approved by the bankruptcy court. 
Market Commentary 
Overall, product tanker spot earnings in the fourth quarter of 2012
improved considerably with average earnings for the quarter reaching
the highest level since the first quarter of 2009. Demand for product
tankers was quite robust in all main product tanker markets, as
increased arbitrage opportunities in the Atlantic basin and increased
demand for Medium Range tankers ("MRs") in the East led spot rates to
increase.  
Product tanker period market activity improved during the course of
the fourth quarter of 2012, as more charterers sought to take period
coverage and at slightly higher time charter rates compared to the
third quarter of 2012.  
On the supply side, the product tanker order book experienced
substantial slippage during 2012, as approximately 55% of the
expected MR and handy size tanker newbuildings were not delivered on
schedule. Analysts expect that net fleet growth for MR and handy size
product tankers for 2013 will be in the region of 3.6%, while overall
demand for product tankers for the year has been revised up to 4.2%.
We believe the improving demand and supply balance of the product
tanker market should continue to positively affect spot and period
charter rates going forward. 
The Suezmax spot market improved towards the end of the fourth
quarter, as increased demand out of West Africa to the US and delays
in the Turkish Straits pushed rates considerably higher from the low
levels experienced during most of the fourth quarter of 2012.
Overall, average spot earnings for crude vessels in 2012 improved
slightly when compared to 2011, due to a strong first half of 2012,
when a spike in OPEC production, together with aggressive stock
building and longer trading distances in response to the Iranian
supply issues, exerted upward pressure on rates.  
Slippage for the Suezmax tanker order book as of the end of December
2012 continued to affect tonnage supply as approximately 34% of the
expected Suezmax newbuildings were not delivered on schedule.
Industry analysts expect the Suezmax tanker order book slippage and
cancellations to increase going forward due to the historically weak
spot market, the soft shipping finance environment and downward
pressure on asset values. Suezmax tanker demand is expected to grow
by 5.2% in the full year 2013 with net fleet growth projected at
5.6%.  
Quarterly Common and Class B Unit Cash Distribution  
On January 22, 2013, the Board of Directors of the Partnership
declared a cash distribution of $0.2325 per common unit for the
fourth quarter of 2012, in line with management's annual guidance.
The fourth quarter common unit cash distribution will be paid on
February 15, 2013, to unit holders of record on February 8, 2013.  
In addition, on January 22, 2013, the Board of Directors of the
Partnership declared a cash distribution of $0.21375 per Class B Unit
for the fourth quarter of 2012, in line with the Partnership's Second
Amended and Restated Partnership Agreement, as amended. The fourth
quarter Class B Unit cash distribution will be paid on February 8,
2013, to Class B Unitholders of record on February 1, 2013. 
Management Commentary 
Mr. Ioannis Lazaridis, Chief Executive and Chief Financial Officer of
the Partnership's General Partner, commented:  
"We are very pleased to have completed a number of very important
transactions for the Partnership during 2012, first with the issuance
of $140.0 million of Class B Convertible Units leading to the
prepayment of a significant part of our debt and the deferral of the
Partnership's remaining debt amortization, secondly with the
acquisition of the two 8,000TEU container vessels with long term
employment to a highly reputable counterparty, Maersk Line, thus
exposing the Partnership to a sector with attractive long term
fundamentals, and finally by continuing to secure attractive period
employment for our fleet. Taking into account these steps, in
conjunction with the expected improvement in the fundamentals of the
product tanker market going forward, the improved charter coverage of
our fleet following our entry in the container market and the
decreased exposure to the crude tanker market through the disposal of
the two VLCCs, should positively affect the future outlook of our
cash flows."  
Mr Lazaridis concluded: "After taking into account the recent
developments in OSG - one of our charterers - I would like to
reiterate our commitment to the $0.93 per unit annual distribution
guidance going forward, and to the continued enhancement of our
financial flexibility in order to pursue growth opportunities and
forge a pathway to distribution growth."  
Conference Call and Webcast
 Today, Thursday January 31, 2013 at
10:00 a.m. Eastern Time (U.S.), the Partnership will host an
interactive conference call. 
Conference Call Details: 
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1-(866) 966-9439 (from
the US), 0(871) 700-0345 (from the UK) or +(44) 1452 555 566 (from
outside the US). Please quote "Capital Product Partners." 
A replay of the conference call will be available until February 7,
2013. The United States replay number is 1(866) 247-4222; from the UK
0(845) 245-5205; the standard international replay number is (+44)
1452 550 000 and the access code required for the replay is:
90459391#  
Slides and Audio Webcast:
 There will also be a simultaneous live
webcast over the Internet, through the Capital Product Partners
website, www.capitalpplp.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast. 
Forward-Looking Statements: 
 The statements in this press release
that are not historical facts, including our expectat
ions regarding
employment of our vessels, redelivery dates and charter rates, fleet
growth and demand, newbuilding deliveries and slippage, the outcome
of the OSG bankruptcy proceedings and the actions of OSG and other
parties, as well as market and charter rate expectations and
expectations regarding our quarterly distributions, ability to pursue
growth opportunities and grow our distributions and annual
distribution guidance may be forward-looking statements (as such term
is defined in Section 21E of the Securities Exchange Act of 1934, as
amended). These forward-looking statements involve risks and
uncertainties that could cause the stated or forecasted results to be
materially different from those anticipated. Unless required by law,
we expressly disclaim any obligation to update or revise any of these
forward-looking statements, whether because of future events, new
information, a change in our views or expectations, to conform them
to actual results or otherwise. We assume no responsibility for the
accuracy and completeness of the forward-looking statements. We make
no prediction or statement about the performance of our units. 
About Capital Product Partners L.P. 
Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands
master limited partnership, is an international owner of a modern
tanker, container and dry bulk vessels. The Partnership currently
owns 25 vessels, including four Suezmax crude oil tankers, 18 modern
MR (Medium Range) product tankers, two post panamax container vessels
and one Capesize bulk carrier. All of its vessels are under period
charters to BP Shipping Limited, Overseas Shipholding Group,
Petrobras, A.P. Moller-Maersk A.S., Arrendadora Ocean Mexicana, S.A.
de C.V., Subtec S.A. de C.V., Cosco Bulk Carrier Co. Ltd. and Capital
Maritime & Trading Corp. 
For more information about the Partnership, please visit our website:
www.capitalpplp.com. 
CPLP-F  
Capital Product Partners L.P.
 Unaudited Condensed Consolidated
Statements of Comprehensive (Loss) / Income
 (In thousands of United
States Dollars, except number of units and earnings per unit) 


 
                                                                           
                              For the three-month                          
                                    period            For the year ended   
                              ended December 31,         December 31,      
                               2012        2011        2012        2011    
                                                                           
Revenues                        20,949      31,810      84,012      98,517 
Revenues - related party        17,360      12,144      69,938      31,799 
                            ----------  ----------  ----------  ---------- 
Total Revenues                  38,309      43,954     153,950     130,316 
                            ----------  ----------  ----------  ---------- 
                                                                           
Expenses:                                                                  
Voyage expenses                    777       8,620       5,114      11,565 
Voyage expenses related                                                    
 party                             133         165         554         165 
Vessel operating expenses -                                                
 related party                   4,727       7,752      23,634      30,516 
Vessel operating expenses        6,476       4,107      22,126       4,949 
General and administrative                                                 
 expenses                        2,252       2,378       9,159      10,609 
Gain on sale of vessel to                                                  
 third parties                       -           -      (1,296)          - 
Depreciation                    11,994      12,253      48,235      37,214 
Vessels' impairment charge      43,178           -      43,178           - 
                            ----------  ----------  ----------  ---------- 
Operating (loss) / income      (31,228)      8,679       3,246      35,298 
                            ----------  ----------  ----------  ---------- 
Non-operating income                                                       
 (expense),net:                                                            
Gain from bargain purchase           -           -           -      82,453 
Other income (expense),                                                    
 net:                                                                      
Interest expense and                                                       
 finance cost                   (3,852)     (9,001)    (26,658)    (33,820)
Gain on interest rate swap                                                 
 agreement                          25       1,043       1,448       2,310 
Interest and other income           48         318         775         879 
                            ----------  ----------  ----------  ---------- 
Total other expense, net        (3,779)     (7,640)    (24,435)    (30,631)
                            ----------  ----------  ----------  ---------- 
Net (loss) / income            (35,007)      1,039     (21,189)     87,120 
                            ----------  ----------  ----------  ---------- 
Preferred unit holders'                                                    
 interest in Partnership's                                                 
 net income                      3,325           -      10,809           - 
General Partner's interest                                                 
 in Partnership's net                                                      
 (loss) / income                  (767)         21        (640)      1,742 
Common unit holders'                                                       
 interest in Partnership's                                                 
 net (loss) / income           (37,565)      1,018     (31,358)     85,378 
Net (loss) / income per:                                                   
-- Common units (basic and                                                 
 diluted)                        (0.55)       0.02       (0.46)       1.78 
Weighted-average units                                                     
 outstanding:                                                              
-- Common units (basic and                                                 
 diluted)                   68,383,478  68,182,501  68,256,072  47,138,336 
                                                                           
Comprehensive (loss) /                                                     
 income:                                                                   
Partnership's net (loss) /                                                 
 income                        (35,007)      1,039     (21,189)     87,120 
Other Comprehensive income:                                                
Unrealized gain on                                                         
 derivative instruments            467       4,565      10,762      17,518 
                                                                           
                            ----------  ----------  ----------  ---------- 
Comprehensive (loss) /                                                     
 income                        (34,540)      5,604     (10,427)    104,638 
                            ----------  ----------  ----------  ---------- 

 
Capital Product Partners L.P.
 Unaudited Condensed Consolidated
Balance Sheets
 (In thousands of United States Dollars) 


 
                                                                            
                                    
              December 31,  December 31,
                                                      2012          2011    
Assets                                                                      
Current assets                                                              
Cash and cash equivalents                         $     43,551  $     53,370
Trade accounts receivable, net                           2,346         3,415
Prepayments and other assets                             1,259         1,496
Inventories                                              2,333         4,010
                                                  ------------  ------------
Total current assets                                    49,489        62,291
                                                  ------------  ------------
Fixed assets                                                                
Vessels, net                                           959,550     1,073,986
                                                  ------------  ------------
Total fixed assets                                     959,550     1,073,986
                                                  ------------  ------------
Other non-current assets                                                    
Trade accounts receivable                                  848             -
Above market acquired charters                          47,720        51,124
Deferred charges, net                                    2,021         2,138
Restricted cash                                         10,500         6,750
                                                  ------------  ------------
Total non-current assets                             1,020,639     1,133,998
                                                  ------------  ------------
Total assets                                         1,070,128  $  1,196,289
                                                  ------------  ------------
Liabilities and Partners' Capital                                           
Current liabilities                                                         
Current portion of long-term debt                 $          -  $     18,325
Trade accounts payable                                   4,776         8,460
Due to related parties                                  17,447        10,572
Derivative instruments                                     467         8,255
Accrued liabilities                                      2,781         2,286
Deferred revenue                                        10,302         7,739
                                                  ------------  ------------
Total current liabilities                               35,773        55,637
                                                  ------------  ------------
Long-term liabilities                                                       
Long-term debt                                         458,365       615,255
Deferred revenue                                         2,162         3,649
Derivative instruments                                       -         4,422
                                                  ------------  ------------
Total long-term liabilities                            460,527       623,326
                                                  ------------  ------------
Total liabilities                                      496,300       678,963
                                                  ------------  ------------
Commitments and contingencies                                               
                                                  ------------  ------------
Partners' capital                                      573,828       517,326
                                                  ------------  ------------
Total liabilities and partners' capital           $  1,070,128  $  1,196,289
                                                  ------------  ------------

 
Capital Product Partners L.P.
 Unaudited Condensed Consolidated
Statements of Cash Flows
 (In thousands of United States Dollars)  


 
                                                                            
                                                      For the years ended   
                                                         December 31,       
                                                       2012         2011    
Cash flows from operating activities:                                       
Net (loss) / income                                $   (21,189) $    87,120 
Adjustments to reconcile net (loss) / income to                             
 net cash provided by operating activities:                                 
Vessel depreciation                                     48,235       37,214 
Vessel impairment                                       43,178           -- 
Gain from bargain purchase                                  --      (82,453)
Amortization of deferred charges                           480          809 
Amortization of above market acquired charters           7,904        5,489 
Equity compensation expense                              3,826        2,455 
Gain on interest rate swap agreement                    (1,448)      (2,310)
Gain on sale of vessels to third parties                (1,296)          -- 
Changes in operating assets and liabilities:                                
Trade accounts receivable                                  221        7,211 
Due from related parties                                    --            2 
Prepayments and other assets                               237         (589)
Inventories                                              1,677        5,576 
Trade accounts payable                                  (5,594)      (4,600)
Due to related parties                                   7,009       (4,507)
Accrued liabilities                                        480         (247)
Deferred revenue                                         1,078        5,369 
                                                   -----------  ----------- 
Net cash provided by operating activities               84,798       56,539 
                                                   -----------  ----------- 
Cash flows from investing activities:                                       
Vessel acquisitions and new building advances           (1,614)     (27,003)
Additions to restricted cash                            (3,750)      (1,500)
Proceeds from sale of vessels                           21,299           -- 
Cash and cash equivalents acquired in business                              
 acquisition                                                --       11,847 
                                                   -----------  ----------- 
Net cash provided by / (used in) investing                                  
 activities                                             15,935      (16,656)
                                                   -----------  ----------- 
Cash flows from financing activities:                                       
Proceeds from issuance of Partnership units            140,000        1,470 
Expenses paid for issuance of Partnership units         (1,673)          -- 
Proceeds from issuance of long-term debt                    --      159,580 
Payments of long-term debt                            (175,215)    (134,580)
Loan issuance costs                                       (348)        (338)
Dividends paid                                         (73,316)     (45,116)
                                                   -----------  ----------- 
Net cash used in financing activities                 (110,552)     (18,984)
                                                   -----------  ----------- 
Net (decrease) / increase in cash and cash   
                               
 equivalents                                            (9,819)      20,899 
                                                   -----------  ----------- 
Cash and cash equivalents at beginning of period        53,370       32,471 
                                                   -----------  ----------- 
Cash and cash equivalents at end of period              43,551       53,370 
                                                   -----------  ----------- 
Supplemental Cash Flow Information                                          
Cash paid for interest                             $    25,864  $    32,210 
Non-Cash Investing and Financing Activities                                 
Fair value of vessels transferred-in, M/V                                   
 Archimidis and M/V Agamemnon                      $   133,000           -- 
Fair value of vessels transferred out, M/T                                  
 Alexander the Great and M/T Achilleas, reduced by                          
 the net cash consideration received               $  (137,500)          -- 
Acquisition of above market time charter           $     4,500  $    48,551 
Units issued to acquire M/V Cape Agamemnon                  --  $    57,055 
Capital expenditures included in liabilities       $       134  $       252 
Offering expenses included in liabilities          $     1,908           -- 
Crude's net assets at the completion of the                                 
 business acquisition                                       --  $   211,144 
Units issued to acquire Crude                               --  $   155,559 
Fair value of Crude's Equity Incentive Plan                                 
 attributable to precombination services                    --  $     1,505 

 
Appendix A - Reconciliation of Non-GAAP Financial Measure
 (In
thousands of U.S. dollars) 
Description of Non-GAAP Financial Measure - Operating Surplus 
Operating Surplus represents net income adjusted for non-cash items
such as depreciation and amortization expense, the Impairment Charge
and deferred revenue. In prior periods the Partnership designated a
separate reserve in its calculation of Operating Surplus for
"Replacement Capital Expenditures." The intent of this reserve is to
invest, rather than distribute, an amount of cash flow each quarter
so that the Partnership will be able to replace vessels in its fleet
as those vessels reach the end of their useful lives. Based on
current estimates of future vessel replacement costs, prior levels of
Replacement Capital Expenditure reserves and investment returns from
previous Replacement Capital Expenditure reserves, the Board of
Directors has determined not to reserve additional Replacement
Capital Expenditures for the fourth quarter. The Board of Directors
will continue to review its Replacement Capital Expenditure
requirements on a quarterly basis. Operating Surplus is a
quantitative standard used in the publicly-traded partnership
investment community to assist in evaluating a partnership's ability
to make quarterly cash distributions. Operating Surplus is a non-GAAP
financial measure and should not be considered as an alternative to
net income or any other indicator of the Partnership's performance
required by accounting principles generally accepted in the United
States. The table below reconciles Operating Surplus to net income
for the three-months period ended December 31, 2012. 


 
                                                                            
                                                     For the three-month    
Reconciliation of Non-GAAP Financial Measure -          period ended        
 Operating Surplus                                    December 31, 2012     
                                                                            
Net loss                                          $                 (35,007)
Adjustments to reconcile net income to net cash                             
 provided by operating activities                                           
Depreciation and amortization                                        12,833 
Deferred revenue                                                      1,486 
Vessels impairment charge                                            43,178 
                                                  ------------------------- 
OPERATING SURPLUS PRIOR TO CLASS B PREFERRED                                
 UNITS DISTRIBUTION                                                  22,490 
                                                  ------------------------- 
Class B preferred units distribution                                 (3,325)
                                                  ------------------------- 
ADJUSTED OPERATING SURPLUS                                           19,165 
                                                  ------------------------- 
Increase in recommended reserves                                     (2,707)
                                                  ------------------------- 
AVAILABLE CASH                                    $                  16,458 
                                                  ------------------------- 

  
Contact Details: 
Capital GP L.L.C.
Ioannis Lazaridis
CEO and CFO
+30 (210) 4584 950
E-mail: i.lazaridis@capitalpplp.com 
Capital Maritime & Trading Corp.
Jerry Kalogiratos
Finance Director
+30 (210) 4584 950
j.kalogiratos@capitalpplp.com  
Investor Relations / Media
Matthew Abenante
Capital Link, Inc. (New York)
Tel. +1-212-661-7566
E-mail: cplp@capitallink.com
 
 
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