Box Ships Inc. Reports Fourth Quarter And Year Ended December 31, 2012 Results And Declares Quarterly Dividend Of $0.22 Per

Box Ships Inc. Reports Fourth Quarter And Year Ended December 31, 2012 Results
          And Declares Quarterly Dividend Of $0.22 Per Common Share

PR Newswire

ATHENS, Greece, Feb. 19, 2013

ATHENS, Greece, Feb. 19, 2013 /PRNewswire/ --Box Ships Inc. (NYSE: TEU) (the
"Company"), a global shipping company specializing in the seaborne
transportation of containers, announced today its results for the fourth
quarter and year ended December 31, 2012.

                       Three Months Ended December For the period
                       31,                         from April 14, Year Ended
Financial Highlights                               2011^1 to      December 31,
                       2011          2012          December 31,   2012
(Expressed in United                               2011
States Dollars)
Time charter revenues  $16,582,443   $18,054,662   $39,134,328    $67,317,050
Amortization of
above/below market     497,411       1,327,500     1,054,959      3,649,111
time charters
Time charter revenues, $17,079,854   $19,382,162   $40,189,287    $70,966,161
adjusted^2
EBITDA^3               $10,874,818   $9,249,658    $25,573,767    $36,676,732
Adjusted EBITDA^3      $11,522,353   $11,227,915   $26,950,829    $42,086,869
Net Income             $5,576,754    $2,873,563    $12,956,082    $13,176,164
Adjusted Net Income^3  $6,224,289    $4,851,820    $14,333,144    $18,586,301
Earnings per common    $0.34         $0.12         $0.83          $0.56
share (EPS), basic
Earnings per common    $0.34         $0.11         $0.83          $0.54
share (EPS), diluted
Adjusted Earnings per  $0.38         $0.21         $0.92          $0.95
common share, basic^3
Adjusted Earnings per
common share,          $0.38         $0.19         $0.92          $0.89
diluted^3

^1 Date of the initial public offering of our common shares (the "Initial
Public Offering").

^2 Time charter revenues, adjusted, is not a recognized measurement under
generally accepted accounting principles in the United States of America
("U.S. GAAP" or "GAAP"). We believe that the presentation of Time charter
revenues, adjusted is useful to investors because it presents the charter
revenues recognized in the relevant period based on the contracted charter
rates, excluding the amortization of above/below market time charters attached
to vessels acquired. Please refer to the definition and reconciliation of this
measurement to the most directly comparable financial measure calculated and
presented in accordance with U.S. GAAP at the back of this release.

^3 EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per
common share ("Adjusted EPS") are not recognized measurements under GAAP.
Please refer to the definitions and reconciliation of these measurements to
the most directly comparable financial measures calculated and presented in
accordance with U.S. GAAP at the back of this release.

Mr. Michael Bodouroglou, Chairman, President and Chief Executive Officer of
Box Ships Inc., commented:

"We are pleased to announce our fourth quarter and full-year 2012 results,
which were in-line with our expectations, despite the continued weakness in
the containership sector throughout the year. During 2012, we expanded our
fleet from 7 to 9 vessels, and increased EBITDA by 43% from 2011. We are
pleased to announce that the Board of Directors has declared a dividend of
$0.22 per share payable on March 28, 2013 for shareholders of record on March
21, 2013, bringing the total amount of dividends declared to shareholders to
$1.75 since our IPO and fulfilling our dividend guidance of $1.00 per share
for the four calendar quarters of 2012. In addition, we currently anticipate
paying a dividend of $0.12 per share with respect to the first quarter of
2013, subject to the approval of our Board of Directors."

Mr. Bodouroglou concluded, "Given the current global economic situation and
the demand and supply imbalance in our industry, we believe the market will
remain under pressure through 2013; we have proactively secured employment for
the Box Trader and Box Voyager for periods of six to fourteen months,
increasing our charter coverage, based on the earliest redelivery dates, to
85% of our fleet capacity for the remainder of 2013 and helping to insulate us
from the continued weakness in the containership market."

Results of Operations

Three months ended December 31, 2012 compared to three months ended December
31, 2011

During the fourth quarter of 2012, we operated an average of 9.00 vessels. Our
Net Income and Adjusted Net Income during the fourth quarter of 2012 were $2.9
million and $4.9 million, respectively, resulting in basic earnings per share
of $0.12 and basic adjusted earnings per share of $0.21. EBITDA and Adjusted
EBITDA for the fourth quarter of 2012 were $9.2 million and $11.2 million,
respectively.

During the fourth quarter of 2011, we operated an average of 7.00 vessels. Our
Net Income and Adjusted Net Income during the fourth quarter of 2011 were $5.6
million and $6.2 million, respectively, resulting in earnings per share of
$0.34 and adjusted earnings per share of $0.38, on both a basic and diluted
basis. EBITDA and Adjusted EBITDA for the fourth quarter of 2011 were $10.9
million and $11.5 million, respectively.

Net revenues

Net revenues represent charter hire earned, net of commissions. During the
fourth quarter of 2012 and 2011, our vessels operated a total of 801 and 644
days, respectively, from a total of 828 and 644 calendar days, respectively.
During the fourth quarter of 2012, we had 26 idle days and one off-hire day
related to unscheduled maintenance, for a total of 27 off-hire days.
Currently, all vessels in our fleet are employed under fixed rate time
charters, having an average weighted remaining charter duration of 22 months
(weighted by aggregate contracted charter hire). The Company reported net
revenues for the fourth quarter of 2012 of $17.7 million, compared to $16.2
million in the fourth quarter of 2011, due to the increased fleet size and
vessel operating days period over period, which was partially offset by the
idle days of Box Trader and Box Voyager in the fourth quarter of 2012. Our net
revenues are also net of the amortization of above/below market time charters,
which decreased our revenues and net income for the fourth quarter of 2012 and
2011 by $1.3 million and $0.5 million, respectively, or $0.07 and $0.03 per
common share, respectively. Our average time charter equivalent rate, or TCE
rate, for the fourth quarter of 2012 was $21,276 per vessel per day, which was
below our TCE rate of $24,601 per vessel per day during the fourth quarter of
2011, due to the lower re-chartering rates, the amount of idle days and
related voyage expenses of Box Voyager and Box Trader in the fourth quarter of
2012. Our adjusted TCE rate was $22,933 per vessel per day in the fourth
quarter of 2012, lower than our adjusted TCE of $25,373 for the fourth quarter
of 2011, reflecting the lower re-chartering rates, the amount of idle days and
related voyage expenses of Box Voyager and Box Trader in the fourth quarter of
2012. TCE rate is not a recognized measurement under GAAP. Please see the
table at the back of this release for a reconciliation of TCE rates to time
charter revenues, the most directly comparable financial measure calculated
and presented in accordance with U.S. GAAP.

Voyage expenses

Voyage expenses for the fourth quarter of 2012 and 2011 amounted to $0.6
million and $0.4 million, respectively, and mainly relate to war risk
insurance costs for our fleet and bunkers consumed by Box Trader and Box
Voyager during the periods the vessels were unemployed during the fourth
quarter of 2012.

Vessels operating expenses

Vessels operating expenses comprise crew wages and related costs, insurance
and vessel registry costs, repairs and maintenance expenses (excluding
dry-docking), the cost of spares and consumable stores, regulatory fees and
other miscellaneous expenses. In addition, vessels operating expenses for the
fourth quarter of 2012 include a non-cash amortization of other intangible
assets in relation to the acquisition of OOCL Hong Kong and OOCL China. The
amortization of other intangible assets for the fourth quarter of 2012
amounted to $0.3 million. During the fourth quarter of 2012, vessels operating
expenses including the amortization of other intangible assets amounted to
$4.9 million, or $4.6 million on an adjusted basis, compared to $3.3 million
during the fourth quarter of 2011, due to the increased average number of
vessels and increased calendar days period over period. On average, our
vessels operating expenses for the fourth quarter of 2012 were $5,874 per
vessel per day, or $5,552 per vessel per day on an adjusted basis, compared to
$5,197 per vessel per day, in the fourth quarter of 2011.

Management fees charged by a related party

Management fees charged by Allseas Marine S.A (our "Manager" or "Allseas") for
the fourth quarter of 2012 and 2011 were $0.7 million and $0.5 million,
respectively, or $822 per vessel per day and $838 per vessel per day,
respectively. The increase in management fees was due primarily to the
increased average number of vessels and increased calendar days period over
period, and was partly offset by the decrease in the U.S. Dollar/Euro exchange
rate. Management fees charged by a related party represent fees for management
and technical services in accordance with our management agreement. This fee
is charged on a daily basis per vessel and is affected by the number of
vessels in our fleet, the number of calendar days during the period, and the
U.S. Dollar/Euro exchange rate at the beginning of each month.

Depreciation

Depreciation for our fleet for the fourth quarter of 2012 and 2011 was $4.2
million and $3.4 million, respectively, due to the increased number of vessels
which resulted in increased calendar days period over period.

General and administrative expenses

General and administrative ("G&A") expenses for the fourth quarter of 2012 and
2011 were $2.2 million and $1.1 million, or $2,610 and $1,699 per day,
respectively. The increase in G&A expenses period over period was due
primarily to increased costs related to SOX compliance, financial reporting
fees, increased executive services expenses and increased share-based
compensation expenses. During the fourth quarter of 2012 and 2011, expenses
related to the provision of our executive services by our Manager and
incentive compensation amounted to $1.2 million and $0.6 million,
respectively, and share-based compensation amounted to $0.4 million and $0.2
million, respectively.

Interest and finance costs

Interest and finance costs amounted to $2.2 million and $1.9 million for the
fourth quarters of 2012 and 2011, respectively. This increase in interest and
finance costs is due to an increase in our average borrowings outstanding
period over period.

UNAUDITED CONSOLIDATED CONDENSED CASH FLOW INFORMATION
(Expressed in United States Dollars)
                                             For the period from  Year ended
                                             April 14, 2011 to    December 31,
                                             December 31, 2011    2012
Net cash from Operating Activities           21,879,409           32,531,933
Net cash used in Investing Activities        (338,814,109)        (62,420,555)
Net cash from Financing Activities           324,084,855          29,879,919
Net increase / (decrease) in cash and cash   7,150,155            (8,703)
equivalents



Net cash provided by Operating Activities

Net cash from Operating Activities for the year ended December 31, 2012 was
$32.5 million. Our vessels generated positive cash flows from revenues, net of
commissions, of $69.4 million, while we paid $36.9 million for expenses, of
which $7.2 million relates to the payment of interest on our bank loans and
our related party loan with Paragon Shipping Inc. ("Paragon Shipping").

Net cash from Operating Activities for the period from April 14, 2011 to
December 31, 2011 was $21.9 million. Our vessels generated positive cash flows
from revenues, net of commissions, of $39.9 million, while we paid $18.0
million for expenses, of which $3.3 million relates to the payment of interest
on our bank loans and our related party loan with Paragon Shipping.

Net cash used in Investing Activities

Net cash used in Investing Activities during the year ended December 31, 2012,
was $62.4 million, relating to the acquisition of OOCL Hong Kong and OOCL
China, including attached intangibles.

Net cash used in Investing Activities during the period from April 14, 2011 to
December 31, 2011, was $338.8 million, comprised of $328.8 million relating to
the acquisition of our first seven vessels in our fleet, including attached
time charters and other fixed assets, and $10.0 million relating to the
increase in our restricted cash to be maintained for minimum liquidity
requirements under our loan agreements.

Net cash from Financing Activities

Net cash from Financing Activities during the year ended December 31, 2012,
was $29.9 million. Included in the $29.9 million is the proceeds from the
issuance and sale to Neige International Inc., a company controlled by our
Chairman, President and Chief Executive Officer, Mr. Michael Bodouroglou
("Neige International"), of 1,333,333 units, each unit consisting of one 9.75%
Series B Cumulative Redeemable Perpetual Preferred Share (the "Series B
Preferred Shares") and one warrant to purchase one of our common shares, which
amounted to $38.4 million in aggregate, net of related costs of $0.1 million,
together with the drawdown of $24.7 million under a secured loan agreement,
net of financing fees of $0.3 million, which were used to finance the
acquisition of OOCL Hong Kong and OOCL China. On July 18, 2012, we completed
the public offering and issuance of 4,285,715 of our common shares, resulting
in net proceeds of $28.0 million, net of underwriting discounts, commissions
and other offering costs of $2.0 million in the aggregate. We used a portion
of the net proceeds of the public offering to redeem 692,641 of the Series B
Preferred Shares issued to Neige International at a price equal to the
liquidation preference of $30.00 per share, or $20.8 million in the aggregate.
During the year ended December 31, 2012, we repaid $19.9 million of our debt
and paid dividends to our preferred and common shareholders of $0.7 million
and $19.8 million, in the aggregate, respectively.

Net cash from Financing Activities during the period from April 14, 2011 to
December 31, 2011, was $324.1 million. The proceeds from our Initial Public
Offering of $122.7 million, net of underwriting discounts, commissions and
other offering costs of $9.3 million in the aggregate, together with the net
proceeds of $231.7 million under our secured and unsecured loan agreements,
net of financing fees of $2.6 million, were used to partially finance the
acquisition of the first seven vessels in our fleet. During the period from
April 14, 2011 to December 31, 2011, we repaid $23.1 million of our debt and
paid dividends of $7.2 million in the aggregate.

Liquidity:

As of December 31, 2012, our cash and restricted cash (current and
non-current) amounted to $17.1 million in the aggregate, of which $10.0
million is considered restricted for minimum liquidity purposes under our loan
agreements. As of December 31, 2012, we had total outstanding indebtedness of
$216.3 million, of which $36.7 million is scheduled to be repaid during 2013,
and we were in compliance with all of the covenants contained in our loan
agreements. As of December 31, 2012, our current assets were less than our
current liabilities, which was partly due to the maturity of one of our loan
agreements in April 2013. As of the date of this release, we have no borrowing
capacity under our existing loan facilities and no capital commitments. We
anticipate that our current financial resources, together with cash generated
from operations will be sufficient to fund the operations of our current
fleet, including our working capital requirements, for the next 12 months. In
addition, we have decided to repay another $1.0 million to Paragon Shipping in
the first quarter to reduce our interest expense and the current outstanding
loan due in April 2013 to $13.0 million. 

Dividends:

On February 19, 2013, our Board of Directors declared a dividend of $0.22 per
common share, with respect to the fourth quarter of 2012, payable on or about
March 28, 2013, to common shareholders of record as of the close of business
on March 21, 2013. This is the seventh consecutive quarterly dividend to
common shareholders since we became a public company in April 2011.

On January 2, 2013, we paid a dividend of $0.5 million for the period from
October 1, 2012 to December 31, 2012, to Neige International, the only holder
of our Series B-1 Preferred Shares outstanding as of December 31, 2012, the
record date for such dividend payment. As of December 31, 2012, 640,692 Series
B-1 Preferred Shares were outstanding.

Consistent with our policy of paying quarterly dividends in respect of our
common shares in amounts equal to substantially all of our operating cash flow
less any amounts required to pay cash expenses and capital expenditures,
service our debt, maintain reserves for dry-dockings, surveys and other
purposes as our Board of Directors may from time to time determine, and fund
dividend payments to holders of our 9.75% Series B-1 Cumulative Redeemable
Perpetual Preferred Shares (the "Series B-1 Preferred Shares"), which rank
prior to our common shares with respect to, among other things, dividends, we
currently anticipate paying a dividend of $0.12 per share with respect to the
first quarter of 2013, assuming (i) the dry-docking of one of our vessels at
the end of the first quarter of 2013 for the anticipated period of time and
resulting off-hire days and expense; (ii) the continued performance of our
current time charters and no unexpected off-hire periods; (iii) that we do not
incur any unanticipated extraordinary cash expenses such as vessel repairs,
mandated upgrades or modifications or other liabilities not covered by cash
reserves established from time to time by our Board of Directors, (iv) the
continued compliance with our loan agreements and (v) no material changes in
vessel operating or financing expenses.

The declaration and payment of any dividend on our common shares will be
determined at the sole discretion of our Board of Directors. We cannot assure
you that we will pay dividends in the amounts stated above or at all, and our
ability to pay dividends will be subject to the rights of holders of our
Series B-1 Preferred Shares, which accrue dividends cumulatively at a rate of
9.75% per annum per $30.0 stated liquidation preference per Series B-1
Preferred Share and are payable on January 1, April 1, July 1 and October 1 of
each year, the restrictions in our loan agreements, the provisions of Marshall
Islands law and other factors to be considered by our Board of Directors.

Chartering Update and Strategy:

In January 2013, Box Voyager entered into a time charter with Chenglie
Navigation Co. ("CNC"), which is part of the CMA CGM Group, for a period of 6
to 14 months at a gross daily rate of $6,850.

Pursuant to our chartering strategy, we focus on containerships with carrying
capacities ranging from 1,700 TEU to 7,000 TEU employed on short- to
medium-term time charters of one to five years with staggered maturities,
which provide us with the benefit of stable cash flows from a diversified
portfolio of charterers, while preserving the flexibility to capitalize on
potentially rising rates when the current time charters expire. Based on the
earliest redelivery dates, the Company has secured under such contracts 85%
and 44% of its fleet capacity for the remainder of 2013 and 2014,
respectively. For future updates on the employment of our vessels, please
visit the employment section of our website at
www.box-ships.com/fleet-employment.php. The information contained on the
Company's website does not constitute part of this press release. 

Fleet List:

The following table provides additional information about our fleet as of
February 19, 2013.



                  Year                        Daily Gross  Charter
Vessel            Built   TEU    Charterer    Charter Rate Expiration    Notes
                                              (7)
Box Voyager       2010    3,426  CNC          $6,850       July 2013     1
Box Trader        2010    3,426  Hapag Lloyd  $6,750       April 2013    2
CMA CGM Kingfish  2007    5,095  CMA CGM      $23,000      April 2014    3
CMA CGM Marlin    2007    5,095  CMA CGM      $23,000      May 2014      3
Maersk Diadema
(formerly the MSC 2006    4,546  Maersk       $28,000      January 2014  3,4
Siena)
Maule             2010    6,589  CSAV         $38,000      May 2016      5
                                 Valparaiso
MSC Emma          2004    5,060  MSC          $28,500      August 2014   6
OOCL Hong Kong    1995    5,344  OOCL         $26,800      June 2015     8
OOCL China        1996    5,344  OOCL         $26,800      July 2015     8
Total                     43,925
Notes:
1) The charterer has the option to extend the term of the charter by
additional 8 months.

2) The charterer has the option to extend the term of the charter by an
additional one-year term, plus or minus 30
 days, at a gross daily charter rate of $15,000.

3) The charterer has the option to increase or decrease the term of the
charter by 45 days.
4) The charterer has the option to extend the term of the charter by
additional one-year terms for four
 successive years at the same gross daily charter hire.
5) The charterer has the option to increase or decrease the term of the
charter by 30 days. The charterer also
 has the option to purchase the vessel upon expiration of the
charter, provided that the option is exercised at
least six months prior to the expiration of the term of the
charter, for a purchase price of $57.0 million, less a
 0.5% purchase commission payable to parties unaffiliated to us.
6) The charterer has the option to increase or decrease the term of the
charter by 30 days. The charterer also
 has the option to extend the term of the charter by an additional
one-year term at the same gross daily
 charter rate.
7) Daily gross charter rates do not reflect commissions payable by us to
third party chartering brokers and our
 Manager, totaling 4.75% for Box Voyager, 1.25% for each of CMA CGM
Kingfish,  CMA CGM Marlin, OOCL
 Hong Kong and OOCL China,  and 2.5% for each of the other vessels
in our fleet, including, in each case,
 1.25% to Allseas.

8) The charterer has the option to increase or decrease the term of the
charter by 30 days.



Conference Call and Webcast details:

The Company's management will host a conference call to discuss its fourth
quarter and year ended December 31, 2012 results today at 8:00 am ET.

Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-877-317-6789 (USA) or +1-412-317-6789
(international).

A replay of the conference call will be available for seven days and can be
accessed by dialing 1-877-344-7529 (domestic) and +1-412-317-0088
(international) and using passcode 10025326.

There will also be a simultaneous live webcast over the Internet, through the
Company's website (www.box-ships.com). Participants in the live webcast should
register on the website approximately 15 minutes prior to the start of the
webcast.

About Box Ships Inc.:

Box Ships Inc. is an Athens, Greece-based international shipping company
specializing in the transportation of containers. The Company's current fleet
consists of nine containerships with a total carrying capacity of 43,925 TEU
and a TEU weighted average age of 8.1 years. The Company's shares trade on the
New York Stock Exchange under the symbol "TEU."

Cautionary Statement Regarding Forward-Looking Statement

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast," "project,"
"plan," "potential," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for container shipping capacity, changes
in our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our vessels, availability of financing and refinancing,
charter counterparty performance, ability to obtain financing and comply with
covenants in such financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential liability
from pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due to accidents
or political events, vessels breakdowns and instances of off-hires and other
factors. Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and uncertainties.

Contacts:



Box Ships Inc.

Robert Perri, CFA

Chief Financial Officer

Tel. +30 (210) 8914600

E-mail: ir@box-ships.com




Investor Relations / Media

Allen & Caron Inc.

Michael Mason (Investors)

Tel. +1 (212) 691-8087

E-mail: michaelm@allencaron.com



Len Hall (Media)

Tel. +1 (949) 474-4300

E-mail: len@allencaron.com



- Tables Follow –



                               Three Months Ended Period from     Year Ended
SUMMARY FLEET INFORMATION      December 31,       April 14, 2011  December 31,
                                                  to December 31, 2012
                               2011      2012     2011
FLEET DATA
Average number of vessels ^(1) 7.00      9.00     5.92            8.01
Calendar days for fleet ^(2)   644       828      1,551           2,932
Less:
Scheduled off-hire             -         -        -               44
Unscheduled off-hire           -         27       -               154
Operating days for fleet ^(3)  644       801      1,551           2,734
Fleet utilization ^(4)         100%      97%      100%            93%
AVERAGE DAILY RESULTS

(Expressed in United States Dollars)
Time charter equivalent ^(5)   $24,601   $21,276  $24,363         $23,177
Vessel operating expenses ^(6) $5,197    $5,874   $5,427          $5,555
Management fees charged by a   $838      $822     $871            $808
related party ^(7)
General and administrative     $1,699    $2,610   $1,609          $2,019
expenses ^(8)
Total vessel operating         $7,734    $9,306   $7,907          $8,382
expenses ^(9)



    Average number of vessels is the number of vessels that constituted our
(1) fleet for the relevant period, as measured by the sum of the number of
    calendar days each vessel was a part of our fleet during the period
    divided by the number of calendar days in the period.
(2) Calendar days are the total days we possessed the vessels in our fleet for
    the relevant period.
    Operating days for the fleet are the total calendar days the vessels were
    in our possession for the relevant period after subtracting off-hire days
(3) for scheduled dry-dockings or special or intermediate surveys and
    unscheduled off-hire days associated with repairs and other operational
    matters. Any idle days relating to the days a vessel remains unemployed
    are included in unscheduled off-hire days.
    Fleet utilization is the percentage of time that our vessels were able to
(4) generate revenues and is determined by dividing operating days by fleet
    calendar days for the relevant period.
    Time charter equivalent ("TCE"), is a measure of the average daily revenue
    performance of a vessel on a per voyage basis. Our method of calculating
    TCE is consistent with industry standards and is determined by dividing
    time charter revenues, net of commissions and voyage expenses by operating
    days for the relevant time period. Voyage expenses primarily consist of
(5) extra war risk insurance, port, canal and fuel costs that are unique to a
    particular voyage. TCE is a non-GAAP standard shipping industry
    performance measure used primarily to compare daily earnings generated by
    vessels despite changes in the mix of charter types (i.e., spot voyage
    charters, time charters and bareboat charters) under which the vessels may
    be employed between the periods. 
    Daily vessel operating expenses, which includes crew costs, provisions,
    deck and engine stores, lubricating oil, insurance, other than extra war
(6) risk insurance, maintenance, repairs and amortization of intangibles, is
    calculated by dividing vessel operating expenses by fleet calendar days
    for the relevant time period.
(7) Daily management fees are calculated by dividing management fees charged
    by a related party by fleet calendar days for the relevant time period.
    Daily general and administrative expenses are calculated by dividing
(8) general and administrative expense by fleet calendar days for the relevant
    time period.
    Total vessel operating expenses ("TVOE") are a measurement of our total
    expenses, excluding dry-docking expenses, associated with operating our
(9) vessels. TVOE is the sum of vessel operating expenses, management fees and
    general and administrative expenses. Daily TVOE is calculated by dividing
    TVOE by fleet calendar days for the relevant time period.

Time Charter
Equivalent             Three Months Ended December Period from    Year Ended
Reconciliation         31,                         April 14, 2011 December 31,
                                                   to December    2012
(Expressed in United   2011          2012          31, 2011
States Dollars)
Time Charter Revenues  $16,582,443   $18,054,662   $39,134,328    $67,317,050
Commissions            (361,663)     (367,152)     (861,666)      (1,428,908)
Voyage Expenses        (378,004)     (645,443)     (486,158)      (2,522,736)
Total Revenue, net of  $15,842,776   $17,042,067   $37,786,504    $63,365,406
voyage expenses
Plus: Amortization of
above/below market     497,411       1,327,500     1,054,959      3,649,111
time charters
Total Revenue, net of
voyage expenses,       $16,340,187   $18,369,567   $38,841,463    $67,014,517
adjusted
Total operating days   644           801           1,551          2,734
Time Charter           $24,601       $21,276       $24,363        $23,177
Equivalent
Time Charter
Equivalent,            $25,373       $22,933       $25,043        $24,512
adjusted^(1)

    Time charter equivalent, adjusted ("TCE adjusted"), is a non-GAAP measure
    and is determined by dividing time charter revenues, net of commissions,
    voyage expenses and amortization of above/below market time charters
    attached to the vessels acquired, by operating days for the relevant time
    period. Voyage expenses primarily consist of extra war risk insurance,
(1) port, canal and fuel costs that are unique to a particular voyage. We
    believe that the presentation of TCE adjusted is useful to investors
    because it presents the TCE earned in the relevant period based on the
    contracted charter rates, excluding the amortization of above/below market
    time charters attached to the vessels acquired. The Company's definition
    of TCE adjusted may not be the same as that used by other companies in the
    shipping or other industries.

Reconciliation of U.S. GAAP Financial Information to Non-GAAP measures
(Expressed in United States Dollars, except for share data)


                        Three Months Ended December Period from    Year Ended
Net Income / Adjusted   31,                         April 14, 2011 December
Net Income^(1)                                      to December    31, 2012
                        2011          2012          31, 2011

Net Income              $5,576,754    $2,873,563    $12,956,082    $13,176,164
Plus: Amortization of   497,411       1,593,755     1,054,959      4,184,861
intangibles
Plus: Share-based       150,124       384,502       322,103        1,225,276
compensation
Adjusted Net Income     $6,224,289    $4,851,820    $14,333,144    $18,586,301
EBITDA / Adjusted
EBITDA^(1)
Net income              $5,576,754    $2,873,563    $12,956,082    $13,176,164
Plus: Net Interest      1,919,751     2,211,436     4,567,606      8,473,288
expense
Plus: Depreciation      3,378,313     4,164,659     8,050,079      15,027,280
EBITDA                  $10,874,818   $9,249,658    $25,573,767    $36,676,732
Plus: Amortization of   497,411       1,593,755     1,054,959      4,184,861
intangibles
Plus: Share-based       150,124       384,502       322,103        1,225,276
compensation
Adjusted EBITDA         $11,522,353   $11,227,915   $26,950,829    $42,086,869

                      Three Months Ended December Period from     Year Ended
Earnings per Common   31,                         April 14, 2011  December 31,
Share                                             to December 31, 2012
                      2011          2012          2011
Net income            $5,576,754    $2,873,563    $12,956,082     $13,176,164
Less: Dividends to
Series B-1 Preferred  -             (468,506)     -               (1,238,516)
Shares
Less: Redemption of   -             -             -               (1,762,511)
preferred shares
Less: Net income
attributable to       (58,404)      (52,504)      (103,969)       (189,769)
non-vested share
awards
Net income available
to common             $5,518,350    $2,352,553    $12,852,113     $9,985,368
shareholders
Weighted average
number of common      16,000,000    20,322,504    15,433,519      17,980,980
shares, basic
Earnings per common   $0.34         $0.12         $0.83           $0.56
share, basic
Net income                          $2,873,563                    $13,176,164
Less: Dividends to
Series B-1 Preferred                (468,506)                     (1,238,516)
Shares
Less: Redemption of                 -                             (1,762,511)
preferred shares
Plus: Dividends to
Series B-1 Preferred                468,506                       864,133
Shares, if converted
to common shares
Net income available
to common                           $2,873,563                    $11,039,270
shareholders
Weighted average
number of common                    25,648,582                    20,396,633
shares, diluted
Earnings per common   $0.34         $0.11         $0.83           $0.54
share, diluted







                      Three Months Ended December Period from     Year Ended
Adjusted Earnings per 31,                         April 14, 2011  December 31,
Common Share^(1)                                  to December 31, 2012
                      2011          2012          2011
Adjusted Net income   $6,224,289    $4,851,820    $14,333,144     $18,586,301
Less: Dividends to
Series B-1 Preferred  -             (468,506)     -               (1,238,516)
Shares
Less: Adjusted Net
income attributable   (65,185)      (95,691)      (115,019)       (323,540)
to non-vested share
awards
Adjusted Net income
available to common   $6,159,104    $4,287,623    $14,218,125     $17,024,245
shareholders
Weighted average
number of common      16,000,000    20,322,504    15,433,519      17,980,980
shares, basic
Adjusted Earnings per $0.38         $0.21         $0.92           $0.95
common share, basic
Adjusted Net income                 $4,851,820                    $18,586,301
Less: Dividends to
Series B-1 Preferred                (468,506)                     (1,238,516)
Shares
Plus: Dividends to
Series B-1 Preferred                468,506                       864,133
Shares, if converted
to common shares
Adjusted Net income
available to common                 $4,851,820                    $18,211,918
shareholders
Weighted average
number of common                    25,648,582                    20,396,633
shares, diluted
Adjusted Earnings per $0.38         $0.19         $0.92           $0.89
common share, diluted

    The Company considers EBITDA to represent net income plus net interest
    expense and depreciation and amortization. The Company's management uses
    EBITDA as a performance measure. The Company believes that EBITDA is
(1) useful to investors because the shipping industry is capital intensive and
    may involve significant financing costs. The Company excluded non-cash
    items to derive Adjusted EBITDA because the Company believes that these
    adjustments provide additional information on the fleet operational
    results which may be useful to investors.
    The Company excluded non-cash items from net income to derive Adjusted Net
    Income and Adjusted EPS. The impact of the redemption of preferred shares
    has been excluded from Adjusted Net income available to common
    shareholders for the calculation of Adjusted EPS due to the one-time
    nature of this redemption. The Company believes that Adjusted Net Income
    and Adjusted EPS provide additional information on the fleet operational
    results which may be useful to investors.
    EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are not
    items recognized by U.S. GAAP and should not be considered as an
    alternative to net income, operating income or any other indicator of a
    Company's operating performance required by U.S. GAAP. The Company's
    definition of EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted
    EPS may not be the same as that used by other companies in the shipping or
    other industries.

BOX SHIPS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in United States Dollars, except for share data)
                                                  For the
                    Three Months Ended            period
                    December 31,                  from April      Year ended
                                                  14,             December
                                                  2011 to         31, 2012
                    2011           2012           December 31,
                                                  2011
REVENUES:
Time charter        16,582,443     18,054,662     39,134,328      67,317,050
revenues ^(1)
Commissions         (361,663)      (367,152)      (861,666)       (1,428,908)
Net Revenues        16,220,780     17,687,510     38,272,662      65,888,142
EXPENSES:
Voyage expenses     378,004        645,443        486,158         2,522,736
Vessels operating   3,346,932      4,863,706      8,417,447       16,287,032
expenses ^(2)
Dry-docking         -              56,214         -               2,062,390
expenses
Management fees
charged by a        539,743        680,571        1,350,685       2,370,144
related party
Depreciation        3,378,313      4,164,659      8,050,079       15,027,280
General and
administrative      1,094,427      2,161,117      2,495,761       5,920,836
expenses ^(3)
Operating income    7,483,361      5,115,800      17,472,532      21,697,724
OTHER INCOME
(EXPENSES):
Interest and        (1,927,791)    (2,213,525)    (4,578,050)     (8,490,084)
finance costs
Interest income     8,040          2,089          10,444          16,796
Foreign currency    13,144         (30,801)       51,156          (48,272)
gain / (loss), net
Total other         (1,906,607)    (2,242,237)    (4,516,450)     (8,521,560)
expenses, net
NET INCOME          5,576,754      2,873,563      12,956,082      13,176,164
Earnings per common $0.34          $0.12          $0.83           $0.56
share, basic
Earnings per common $0.34          $0.11          $0.83           $0.54
share, diluted
Footnotes:
(1) includes amortization of below and above market acquired time charters of
$497,411 and $1,327,500 for the three months
  ended December 31, 2011 and 2012, respectively, and
$1,054,959 and $3,649,111 for the period from April 14, 2011 to December 31,
2011
 and for the year ended December 31, 2012, respectively
(2) includes amortization of other intangible assets of $0 and $266,255 for
the three months ended December 31, 2011 and 2012,
 respectively, and $0 and $535,750 for the period from April
14, 2011 to December 31, 2011 and for the year ended December 31,
 2012, respectively
(3) includes share-based compensation of $150,124 and $384,502 for the three
months ended December 31, 2011 and 2012,
 respectively, and $322,103 and $1,225,276 for the period from
April 14, 2011 to December 31, 2011 and for the year ended
 December 31, 2012, respectively







BOX SHIPS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
                                          December 31, 2011  December 31, 2012
ASSETS
Cash and restricted cash (current and     17,150,155         17,141,452
non-current)
Other current assets                      4,404,636          6,696,714
Vessels and other fixed assets, net and   379,856,095        421,225,703
other non-current assets
Total Assets                              401,410,886        445,063,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt         17,700,000         36,700,000
Other current liabilities                 4,657,768          5,959,883
Long-term debt, net of current portion    193,500,000        179,550,000
Other non-current liabilities             3,192,041          2,074,703
Total stockholders' equity                182,361,077        220,779,283
Total Liabilities and Stockholders'       401,410,886        445,063,869
Equity





SOURCE Box Ships Inc.

Website: http://www.box-ships.com
 
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