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Costamare Inc. Reports Results for First Quarter Ended March 31, 2013

Costamare Inc. Reports Results for First Quarter Ended March 31, 2013 
ATHENS, GREECE -- (Marketwired) -- 04/24/13 --  Costamare Inc.
("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited
financial results for the first quarter ended March 31, 2013. 
Financial Highlights  


 
--  Voyage revenues of $91.5 million for the three months ended March 31,
    2013.
    
    
--  Voyage revenues adjusted on a cash basis $94.8 million for the three
    months ended March 31, 2013.
    
    
--  Adjusted EBITDA of $61.2 million for the three months ended March 31,
    2013.
    
    
--  Net income of $24.7 million or $0.33 per share for the three months
    ended March 31, 2013.
    
    
--  Adjusted net income of $21.9 million or $0.29 per share for the three
    months ended March 31, 2013.

  
New Business Developments 


 
--  On March 14 and April 8, 2013, the Company took delivery of the 8,827
    TEU newbuild containership vessels MSC Athens and MSC Athos, which
    were both built by Sungdong Shipbuilding and Marine Engineering in
    South Korea. Upon delivery, both vessels commenced their 10-year
    charters with Mediterranean Shipping Company, S.A. ("MSC").
    
    
--  Sold the 1984-built, 3,584 TEU containership MSC Austria for
    demolition for approximately $7.9 million. The vessel was delivered to
    its buyers on April 24, 2013. The sale of the MSC Austria resulted in
    a book gain of approximately $4.0 million.
    
    
--  Agreed with MSC to replace the 1981-built, 3,876 TEU containership MSC
    Kyoto in the charter party of the MSC Austria which was sold for
    demolition.
    
    
--  Entered into an agreement to charter the 1996-built, 1,504 TEU
    containership Prosper to COSCO, for a period of approximately one year
    at a daily rate of $7,350. The vessel was delivered to its charterers
    on April 16, 2013.
    
    
--  Exercised the option to extend the charter of the 1995-built, 1,162
    TEU containership Zagora with MSC for a further period of two years
    starting from May 1, 2013. The daily rate for the first year of the
    extension was set at $5,700, based on the closest category on the
    ConTex Index.

  
Dividend Announcements 


 
--  On April
 10, 2013, the Company declared a dividend for the first
    quarter ended March 31, 2013, of $0.27 per share, payable on May 8,
    2013, to stockholders of record at the close of trading of the
    Company's common stock on the New York Stock Exchange on April 24,
    2013. This will be the Company's tenth consecutive quarterly dividend
    since it commenced trading on the New York Stock Exchange.

  
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc.,
commented: 
"During the first quarter of the year, the Company delivered positive
results.  
In accordance with our new-building program, we took delivery of the
first two 9,000 TEU newbuild containership vessels. Both vessels
commenced their 10-year charters with MSC. This addition, along with
the remaining eight vessels currently on order and scheduled for
delivery within the next 10 months, will contribute in excess of $1.3
billion of contracted revenues throughout the duration of their
charters. 
Taking advantage of attractive demolition rates, we sold the
1984-built, 3,584 TEU containership MSC Austria for approximately
$7.9 million. The sale resulted in a book gain of approximately $4.0
million.  
On the chartering side, the Company has no ships laid up. We recently
entered into an agreement to charter the 1996-built, 1,504 TEU
containership Prosper to COSCO, for a period of approximately one
year at a competitive daily rate of $7,350.  
In a challenging market we have minimized our re-chartering risk. The
charters for the vessels opening in 2013 and 2014 account for
approximately 4% and 3% of our 2013 and 2014 contracted revenues,
respectively. 
Finally, on April 10, 2013, we declared a dividend for the first
quarter of $0.27 per share. Consistent with our dividend policy, we
continue to offer an attractive dividend, which we consider to be
sustainable based on the size of our contracted cash flows, the
quality of our charterers and the prudent amortization of our debt.  
We believe that going forward, a containership market under pressure
provides us with the opportunity to expand opportunistically in a low
rate and asset values environment."  


 
                                                                            
                              Financial Summary                             
                                                                            
                                                  Three-month period ended  
                                                          March 31,         
(Expressed in thousands of U.S. dollars, except                             
 share and per share data):                           2012          2013    
                                                 ------------- -------------
                                                                            
                                                                            
Voyage revenue                                   $     100,031 $      91,536
Accrued charter revenue (1)                      $         505 $       3,292
Voyage revenue adjusted on a cash basis (2)      $     100,536 $      94,828
                                                                            
Adjusted EBITDA (3)                              $      67,095 $      61,226
                                                                            
Adjusted Net Income (3)                          $      25,178 $      21,939
Weighted Average number of shares                   61,124,176    74,800,000
Adjusted Earnings per share (3)                  $        0.41 $        0.29
                                                                            
EBITDA (3)                                       $      66,451 $      64,022
Net Income                                       $      24,534 $      24,735
Weighted Average number of shares                   61,124,176    74,800,000
Earnings per share                               $        0.40 $        0.33

 
(1) Accrued charter revenue represents the difference between cash
received during the period and revenue recognized on a straight-line
basis. In the early years of a charter with escalating charter rates,
voyage revenue will exceed cash received during the period, and
during the last years of such a charter, cash received will exceed
revenue recognized on a straight-line basis. 
 (2) Voyage revenue
adjusted on a cash basis represents Voyage revenue after adjusting
for non-cash "Accrued charter revenue" recorded under charters with
escalating charter rates. However, Voyage revenue adjusted on a cash
basis is not a recognized measurement under U.S. generally accepted
accounting principles, or "GAAP." We believe that the presentation of
Voyage revenue adjusted on a cash basis is useful to investors
because it presents the charter revenue for the relevant period based
on the then current daily charter rates. The increases or decreases
in daily charter rates under our charter party agreements are
described in the notes to the "Fleet List" below. 
 (3) Adjusted net
income, adjusted earnings per share, EBITDA and adjusted EBITDA are
non-GAAP measures. Refer to the reconcilia
tion of net income to
adjusted net income and net income to EBITDA and adjusted EBITDA
below. 
Non-GAAP Measures 
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However, management
believes that certain non-GAAP financial measures used in managing
the business may provide users of these financial measures additional
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP financial
measures can provide additional meaningful reflection of underlying
trends of the business because they provide a comparison of
historical information that excludes certain items that impact the
overall comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and in
evaluating the Company's performance. Tables below set out
supplemental financial data and corresponding reconciliations to GAAP
financial measures for the three-month periods ended March 31, 2013
and March 31, 2012. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP. Non-GAAP financial measures
include (i) Voyage revenue adjusted on a cash basis (reconciled
above), (ii) Adjusted Net Income, (iii) Adjusted earnings per share,
(iv) EBITDA and (v) Adjusted EBITDA. 


 
                                                                            
            Reconciliation of Net Income to Adjusted Net Income             
                                                                            
                                                   Three-month period ended 
                                                           March 31,        
                                                   ------------------------ 
(Expressed in thousands of U.S. dollars, except                             
 share and per share data)                             2012         2013    
                                                   -----------  ----------- 
                                                                            
Net Income                                         $    24,534  $    24,735 
Accrued charter revenue                                    505        3,292 
(Gain) Loss on sale/disposal of vessels                  2,801       (2,909)
Realized (Gain) Loss on Euro/USD forward contracts         368         (190)
Gain on derivative instruments                          (3,030)      (2,989)
                                                                            
                                                   -----------  ----------- 
Adjusted Net income                                $    25,178  $    21,939 
                                                   ===========  =========== 
Adjusted Earnings per Share                        $      0.41  $      0.29 
                                                   ===========  =========== 
Weighted average number of shares                   61,124,176   74,800,000 
                                                   ===========  =========== 

 
Adjusted Net income and Adjusted Earnings per Share represent net
income before non-cash "Accrued charter revenue" recorded under
charters with escalating charter rates, gain/(loss) on sale of
vessels, realized (gain)/loss on Euro/USD forward contracts and
non-cash changes in fair value of derivatives. "Accrued charter
revenue" is attributed to the timing difference between the revenue
recognition and the cash collection. However, Adjusted Net income and
Adjusted Earnings per Share are not recognized measurements under
U.S. generally accepted accounting principles, or "GAAP." We believe
that the presentation of Adjusted Net income and Adjusted Earnings
per Share are useful to investors because they are frequently used by
securities analysts, investors and other interested parties in the
evaluation of companies in our industry. We also believe that
Adjusted Net income and Adjusted Earnings per Share are useful in
evaluating our ability to service additional debt and make capital
expenditures. In addition, we believe that Adjusted Net income and
Adjusted Earnings per Share are useful in evaluating our operating
performance and liquidity position compared to that of other
companies in our industry because the calculation of Adjusted Net
income and Adjusted Earnings per Share generally eliminates the
effects of the accounting effects of capital expenditures and
acquisitions, certain hedging instruments and other accounting
treatments, items which may vary for different companies for reasons
unrelated to overall operating performance and liquidity. In
evaluating Adjusted Net income and Adjusted Earnings per Share, you
should be aware that in the future we may incur expenses that are the
same as or similar to some of the adjustments in this presentation.
Our presentation of Adjusted Net income and Adjusted Earnings per
Share should not be construed as an inference that our future results
will be unaffected by unusual or non-recurring items. 


 
                                                                            
              Reconciliation of Net Income to Adjusted EBITDA               
                                                                            
                                                   Three-month period ended 
                                                           March 31,        
                                                   ------------------------ 
(Expressed in thousands of U.S. dollars)               2012         2013    
                                                   -----------  ----------- 
                                                                            
                                                                            
Net Income                                         $    24,534  $    24,735 
Interest and finance costs                              20,240       17,564 
Interest income                                           (284)        (209)
Depreciation                                            20,013       19,882 
Amortization of dry-docking and special survey                              
 costs                                                   1,948        2,050 
                                                   -----------  ----------- 
EBITDA                                                  66,451       64,022 
                                                   -----------  ----------- 
Accrued charter revenue                                    505        3,292 
(Gain) Loss on sale/disposal of vessels                  2,801       (2,909)
Realized (Gain) Loss on Euro/USD forward contracts         368         (190)
Gain on derivative instruments                          (3,030)      (2,989)
                                                   -----------  ----------- 
Adjusted EBITDA                                    $    67,095  $    61,226 
                                                   ===========  =========== 

 
EBITDA represents net income before interest and finance costs,
interest income, depreciation and amortization of deferred
dry-docking & special survey costs. Adjusted EBITDA represents net
income before interest and finance costs, interest income,
depreciation, amortization of deferred dry-docking & special survey
costs, non-cash "Accrued charter revenue" recorded under charters
with escalating charter rates, gain/(loss) on sale of vessels,
realized (gain)/loss on Euro/USD forward contracts and non-cash
changes in fair value of derivatives. "Accrued charter revenue" is
attributed to the time difference between the revenue recognition and
the cash collection. However, EBITDA and Adjusted EBITDA are not
recognized measurements under U.S. generally accepted accounting
principles, or "GAAP." We believe that the presentation of EBITDA and
Adjusted EBITDA are useful to investors because they are frequently
used by securities analysts, investors and other interested parties
in the evaluation of companies in our industry. We also believe that
EBITDA and Adjusted EBITDA are useful in evaluating our ability to
service additional debt and make capital expenditures. In addition,
we believe that EBITDA and Adjusted EBITDA are useful in evaluating
our operating performance and liquidity position compared to that of
other companies in our industry because the calculation of EBITDA and
Adjusted EBITDA generally eliminates the effects of financings,
income taxes and the accounting effects of capital expenditures and
acquisitions, items which may vary for different companies for
reasons unrelated to overall operating performance and liquidity. In
evaluating EBITDA and Adjusted EBITDA, you should be aware that in
the future we may incur expenses that are the same as or similar to
some of the adjustments in this presentation. Our presentation of
EBITDA and Adjusted EBITDA should not be construed as an inference
that our future results will be unaffected by unusual or
non-recurring items.  
Note: Items to consider for comparability include gains and charges.
Gains positively impacting net income are reflected as deductions to
net income. Charges negatively impacting net income are reflected as
increases to net income. 
Results of Operations 
Three-month period ended March 31, 2013 compared to the three-month
period ended March 31, 2012  
During the three-month periods ended March 31, 2013 and 2012, we had
an average of 46.9 and 46.5 vessels, respectively, in our fleet. In
the three-month period ended March 31, 2013, we accepted delivery of
the newbuild vessel MSC Athens with a TEU capacity of 8,827, the
secondhand vessel Venetiko with a TEU capacity of 5,928, and we sold
the vessel MSC Washington, with a TEU capacity of 3,876. In the
three-month period ended March 31, 2012, we accepted delivery of the
secondhand vessel MSC Ulsan with a TEU capacity of 4,132, and we sold
the vessel Gather, with a TEU capacity of 2,922. In the three-month
periods ended March 31, 2013 and 2012, our fleet ownership days
totaled 4,221 and 4,227 days, respectively. Ownership days are the
primary driver of voyage revenue and vessels' operating expenses and
represent the aggregate number of days in a period during which each
vessel in our fleet is owned.  


 
                                                                            
 (Expressed in millions of                                                  
       U.S. dollars,          Three-month period                            
    except percentages)         ended March 31,                             
                            ----------------------                          
                                                                Percentage  
                               2012        2013       Change      Change    
                            ----------  ----------                          
                                                                            
                                                                            
Voyage revenue              $    100.0  $     91.5  $     (8.5)       (8.5%)
Voyage expenses                   (0.7)       (0.7)          -           -  
Voyage expenses - related                                                   
 parties                          (0.7)       (0.7)          -           -  
Vessels operating expenses       (27.7)      (27.9)        0.2         0.7% 
General and administrative                                                  
 expenses                         (0.9)       (0.9)          -           -  
Management fees - related                                                   
 parties                          (3.7)       (3.9)        0.2         5.4% 
Amortization of dry-docking                                                 
 and special survey costs         (1.9)       (2.0)        0.1         5.3% 
Depreciation                     (20.0)      (19.9)       (0.1)       (0.5%)
Gain (Loss) on                                                              
 sale/disposal of vessels         (2.8)        2.9         5.7       203.6% 
Foreign exchange gains             0.1         0.1           -           -  
Interest income                    0.2         0.2           -           -  
Interest and finance costs       (20.3)      (17.6)       (2.7)      (13.3%)
Other                             (0.1)        0.6         0.7       700.0% 
Gain on derivative                                                          
 instruments                       3.0         3.0           -           -  
                            ----------  ----------                          
Net Income                  $     24.5  $     24.7  $      0.2         0.8% 
                            ==========  ==========                          
                                                                            
                                                                            
                                                                            
  (Expressed in millions of                                                 
        U.S. dollars,           Three-month period                          
     except percentages)         ended March 31,                            
                              ---------------------                         
                                                                Percentage  
                                 2012       2013      Change      Change    
                              ---------- ----------                         
                                                                            
Voyage revenue                $    100.0 $     91.5 $     (8.5)       (8.5%)
Accrued charter revenue              0.5        3.3        2.8       560.0% 
                              ---------- ----------                         
Voyage revenue adjusted on a                                                
 cash basis                   $    100.5 $     94.8 $     (5.7)       (5.7%)
                              ========== ==========                         
                                                                            
                                                                            
                                                                            
                                  Three-month period                        
Fleet operational data             ended March 31,                          
                                 -------------------                        
                                                                Percentage  
                                    2012      2013     Change     Change    
                                 --------- ---------                        
                                                                            
Average number of vessels             46.5      46.9       0.4         0.9% 
Own
ership days                       4,227     4,221      (6.0)       (0.1%)
Number of vessels under dry-                                                
 docking                                 2         2         -              

 
Voyage Revenue 
Voyage revenue decreased by 8.5%, or $8.5 million, to $91.5 million
during the three-month period ended March 31, 2013, from $100.0
million during the three-month period ended March 31, 2012. This
decrease is mainly due to (i) decreased charter rates in certain of
our vessels during the three-month period ended March 31, 2013,
compared to the three-month period ended March 31, 2012, (ii)
revenues not earned by vessels which were sold for scrap after the
first quarter of 2012, partly offset by the revenues earned by
vessels acquired after the first quarter of 2012. Voyage revenues
adjusted on a cash basis (which eliminates non-cash "Accrued charter
revenue"), decreased by 5.7%, or $5.7 million, to $94.8 million
during the three-month period ended March 31, 2013, from $100.5
million during the three-month period ended March 31, 2012. The
decrease is mainly attributable to the decreased charter rates in
certain of our vessels during the three-month period ended March 31,
2013, compared to the three-month period ended March 31, 2012. 
Voyage Expenses 
Voyage expenses were $0.7 million during the three-month period ended
March 31, 2013, and $0.7 million during the three-month period ended
March 31, 2012. Voyage expenses mainly include (i) off-hire expenses
of our fleet, basically fuel consumption and (ii) third party
commissions. 
Voyage Expenses - related parties 
Voyage expenses - related parties in the amount of $0.7 million
during the three-month period ended March 31, 2013 and in the amount
of $0.7 million during the three-month period ended March 31, 2012,
represent fees of 0.75% on voyage revenues charged to us by Costamare
Shipping Company S.A. as provided under our management agreement
signed on November 3, 2010.  
Vessels' Operating Expenses 
Vessels' operating expenses, which also include the realized gain/
(loss) under derivative contracts entered into in relation to foreign
currency exposure, increased by 0.7%, or $0.2 million, to $27.9
million during the three-month period ended March 31, 2013, from
$27.7 million during the three-month period ended March 31, 2012.  
General and Administrative Expenses 
General and administrative expenses were $0.9 million during the
three-month period ended March 31, 2013 and $0.9 million during the
three-month period ended March 31, 2012. General and administrative
expenses for the three-month periods ended March 31, 2013 and 2012,
include $0.25 million, respectively, for the services of the
Company's officers in aggregate charged to us by Costamare Shipping
Company S.A. as provided under our management agreement signed on
November 3, 2010.  
Management Fees - related parties 
Management fees paid to our managers increased by 5.4%, or $0.2
million, to $3.9 million during the three-month period ended March
31, 2013, from $3.7 million during the three-month period ended March
31, 2012. The increase was primarily attributable to the upward
adjustment by 4% of the management fee for each vessel (effective
January 1, 2013), as provided under our management agreement signed
on November 3, 2010. 
Amortization of Dry-docking and Special Survey Costs  
Amortization of deferred dry-docking and special survey costs was
$2.0 million for the three-month period ended March 31, 2013 and $1.9
million for the three-month period ended March 31, 2012. During the
three-month periods ended March 31, 2013 and 2012, two vessels and
two vessels, respectively, underwent their special survey. During the
three-month period ended March 31, 2013, one vessel completed its
respective works and one was in process. During the three-month
period ended March 31, 2012, one vessel completed its respective
works and one was in process.  
Depreciation  
Depreciation expense decreased by 0.5%, or $0.1 million, to $19.9
million during the three-month period ended March 31, 2013, from
$20.0 million during the three-month period ended March 31, 2012. The
decrease was attributable to the decreased calendar days by one day
during the first quarter of 2013 (90 calendar days) compared to the
first quarter of 2012 (91 calendar days), slightly offset by the
increase of the average number of vessels. 
Gain (Loss) on Sale of Vessels 
During the three-month period ended March 31, 2013, we recorded a
gain of $2.9 million from the sale of one vessel. During the
three-month period ended March 31, 2012, we recorded a loss of $2.8
million mainly from the sale of one vessel. 
Foreign Exchange Gains 
Foreign exchange gains amounted to $0.1 million during the
three-month periods ended March 31, 2013 and 2012, respectively. 
Interest Income 
During the three-month periods ended March 31, 2013 and 2012,
interest income was $0.2 million and $0.2 million, respectively. 
Interest and Finance Costs  
Interest and finance costs decreased by 13.3%, or $2.7 million, to
$17.6 million during the three-month period ended March 31, 2013,
from $20.3 million during the three-month period ended March 31,
2012. The decrease is partly attributable to decreased interest
expense charged to us and to decreased commitment fees charged to us,
partly offset by the capitalized interest in relation with our
newbuilding program. 
Gain (Loss) on Derivative Instruments 
The fair value of our 30 interest rate derivative instruments which
were outstanding as of March 31, 2013, equates to the amount that
would be paid by us or to us should those instruments be terminated.
As of March 31, 2013, the fair value of these 30 interest rate
derivative instruments in aggregate amounted to a liability of $165.3
million. Twenty-nine of the 30 interest rate derivativ
e instruments
that were outstanding as at March 31, 2013, qualified for hedge
accounting and the effective portion of the change in their fair
value is recorded in "Comprehensive loss". For the three-month period
ended March 31, 2013, a net gain of $12.4 million has been included
in "Comprehensive loss" and a gain of $3.2 million has been included
in "Gain (loss) on derivative instruments" in the consolidated
statement of income, resulting from the fair market value change of
the interest rate derivative instruments during the three-month
period ended March 31, 2013.  
Cash Flows 


 
                                                                            
Three-month periods ended March 31, 2013 and 2012                           
                                                                            
                                                       Three-month period   
Condensed cash flows                                     ended March 31,    
                                                     ---------------------- 
(Expressed in millions of U.S. dollars)                 2012        2013    
                                                     ----------  ---------- 
Net Cash Provided by Operating Activities            $     35.4  $     34.9 
Net Cash Used in Investing Activities                $    (44.4) $   (149.6)
Net Cash Provided by Financing Activities            $    184.7  $     30.2 

 
Net Cash Provided by Operating Activities  
Net cash flows provided by operating activities for the three-month
period ended March 31, 2013, decreased by $0.5 million to $34.9
million, compared to $35.4 million for the three-month period ended
March 31, 2012. The decrease was primarily attributable to decreased
cash from operations of $5.7 million due to decreased charter rates
in certain of our vessels during 
the three-month period ended March
31, 2013, compared to the three-month period ended March 31, 2012,
partly offset by (a) favorable change in working capital position,
excluding the current portion of long-term debt and the accrued
charter revenue (representing the difference between cash received in
that period and revenue recognized on a straight-line basis) of $1.6
million, (b) decreased dry-docking payments of $0.7 million and (c)
decreased payments for interest (including swap payments) of $0.9
million. 
Net Cash Used in Investing Activities 
Net cash used in investing activities was $ 149.6 million in the
three-month period ended March 31, 2013, which consisted of (a)
$129.2 million advance payments for the construction and purchase of
three newbuild vessels, (b) $22.2 million in payments for the
acquisition of one secondhand vessel, (c) $2.4 million advance
payment we received from the sale of one vessel for scrap which was
delivered to her scrap buyers on April 24, 2013 and (d) $0.6 million
in payments for expenses related to the sale of vessel MSC
Washington. 
Net cash used in investing activities was $44.4 million in the
three-month period ended March 31, 2012, which consisted of (a) $20.2
million advance payments for the construction and purchase of two
newbuild vessels, (b) $30.0 million in payments for the acquisition
of one secondhand vessel and (c) $5.8 million we received from the
sale of one vessel. 
Net Cash Provided By Financing Activities 
Net cash provided by financing activities was $30.2 million in the
three-month period ended March 31, 2013, which mainly consisted of
(a) $36.2 million of indebtedness that we repaid, (b) $87.9 million
we drew down from two of our credit facilities and (c) $20.2 million
we paid for dividends to our stockholders for the fourth quarter of
the year ended December 31, 2012. 
Net cash provided by financing activities was $184.7 million in the
three-month period ended March 31, 2012, which mainly consisted of
(a) $46.4 million of indebtedness that we repaid, (b) $148.1 million
we drew down from three of our credit facilities, (c) $16.3 million
we paid for dividends to our stockholders for the fourth quarter of
the year ended December 31, 2011 and (d) $100.6 million net proceeds
we received from our follow-on offering in March 2012, net of
underwriting discounts and expenses incurred in the offering. 
Liquidity and Capital Expenditures 
Cash and cash equivalents 
As of March 31, 2013, we had a total cash liquidity of $231.4
million, consisting of cash, cash equivalents and restricted cash. 
Debt-free vessels 
As of April 24, 2013, the following vessels were free of debt.  


 
                                                                            
                      Unencumbered Vessels in the water                     
            (refer to fleet list below for full charter details)            
                                                                            
                                                          Year        TEU   
Vessel Name                                               Built    Capacity 
------------------------------------------------------ ---------- ----------
NAVARINO                                                  2010       8,531  
VENETIKO                                                  2003       5,928  
AKRITAS                                                   1987       3,152  
MSC CHALLENGER                                            1986       2,633  
MESSINI                                                   1997       2,458  

 
Capital commitments 
As of April 24, 2013, we had outstanding commitments relating to our
contracted newbuilds aggregating $486.4 million payable in
installments until the vessels are delivered.  
Conference Call details: 
On Thursday, April 25, 2013 at 8:30 a.m., EDT, Costamare's management
team will hold a conference call to discuss the financial results. 
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1(866) 819-7111 (from the
US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from
outside the US). Please quote "Costamare". 
A replay of the conference call will be available until May 2, 2013.
The United States replay number is 1(866) 247-4222; from the UK
0(800) 953-1533; the standard international replay number is (+44)
(0) 1452 550 000 and the access code required for the replay is:
25306424#. 
Live webcast: 
There will also be a simultaneous live webcast over the Internet,
through the Costamare Inc. website (www.costamare.com) under the
"Investors" section. Participants to the live webcast should register
on the website approximately 10 minutes prior to the start of the
webcast. 
About Costamare Inc. 
Costamare Inc. is one of the world's leading owners and providers of
containerships for charter. The Company has 38 years of history in
the international shipping industry and a fleet of 56 containerships,
with a total capacity of approximately 328,000 TEU, including eight
newbuild containerships on order. Costamare Inc.'s common shares
trade on the New York Stock Exchange under the symbol "CMRE." 
Forward-Looking Statements 
This earnings release contains "forward-looking statements". In some
cases, you can identify these statements by forward-looking words
such as "believe", "intend", "anticipate", "estimate", "project",
"forecast", "plan", "potential", "may", "should", "could" and
"expect" and similar expressions. These statements are not historical
facts but instead represent only Costamare's belief regarding future
results, many of which, by their nature, are inherently uncertain and
outside of Costamare's control. It is possible that actual results
may differ, possibly materially, from those anticipated in these
forward-looking statements. For a discussion of some of the risks and
important factors that could affect future results, see the
discussion in Costamare Inc.'s Annual Report on Form 20-F (File No.
001-34934) under the caption "Risk Factors".  
Fleet List 
The tables below provide additional information, as of April 24,
2013, about our fleet of 56 containerships, including eight newbuilds
on order. Each vessel is a cellular containership, meaning it is a
dedicated container vessel. 


 
                                                                            
----------------------------------------------------------------------------
                                                                     Average
                                                                      Daily 
                                                                     Charter
                                                 Current              Rate  
                                                  Daily               Until 
                          Year Capacity   Time   Charter Expiration Earliest
   Vessel Name Charterer Built   (TEU)  Charter   Hire       of      Expiry 
                                        Term(1)   (U.S.  Charter(1)    of   
                                                dollars)             Charter
                                                                      (U.S. 
                                                                    dollars)
                                                                       (2)  
----------------------------------------------------------------------------
1  COSCO       COSCO      2006   9,469     12    36,400   December   36,400 
   GUANGZHOU                             years              2017            
----------------------------------------------------------------------------
2  COSCO       COSCO      2006   9,469     12    36,400    January   36,400 
   NINGBO                                years              2018            
----------------
------------------------------------------------------------
3  COSCO       COSCO      2006   9,469     12    36,400   February   36,400 
   YANTIAN                               years              2018            
----------------------------------------------------------------------------
4  COSCO       COSCO      2006   9,469     12    36,400  April 2018  36,400 
   BEIJING                               years                              
----------------------------------------------------------------------------
5  COSCO       COSCO      2006   9,469     12    37,519   May 2018   37,519 
   HELLAS                                years                              
----------------------------------------------------------------------------
6  MSC ATHENS  MSC        2013   8,827     10    42,000    January   42,000 
                                         years              2023            
----------------------------------------------------------------------------
7  MSC ATHOS   MSC        2013   8,827     10    42,000   February   42,000 
                                         years              2023            
----------------------------------------------------------------------------
8  NAVARINO    Evergreen  2010   8,531    1.5    30,950   September  30,950 
                                         years              2013            
----------------------------------------------------------------------------
9  MAERSK      A.P.       1997   7,403     10    37,000   December   37,000 
   KAWASAKI    Moller-                   years              2017            
   (i)         Maersk                                                       
----------------------------------------------------------------------------
10 MAERSK KURE A.P.       1996   7,403     10    37,000   December   37,000 
   (i)         Moller-                   years              2017            
               Maersk                                                       
------------------------------------
----------------------------------------
11 MAERSK      A.P.       1997   7,403     10    37,000   February   37,000 
   KOKURA      Moller-                   years              2018            
   (i)         Maersk                                                       
----------------------------------------------------------------------------
12 MSC METHONI MSC        2003   6,724     10    29,000   September  29,000 
                                         years              2021            
----------------------------------------------------------------------------
13 SEALAND NEW A.P.       2000   6,648     11    30,375  March 2018  27,010 
   YORK        Moller-                   years     (3)                      
               Maersk                                                       
----------------------------------------------------------------------------
14 MAERSK KOBE A.P.       2000   6,648     11    38,179   May 2018   28,947 
               Moller-                   years     (4)                      
               Maersk                                                       
----------------------------------------------------------------------------
15 SEALAND     A.P.       2000   6,648     11    30,375   June 2018  27,203 
   WASHINGTON  Moller-                   years     (5)                      
               Maersk                                                       
----------------------------------------------------------------------------
16 SEALAND     A.P.       2000   6,648     11    25,375    August    25,897 
   MICHIGAN    Moller-                   years     (6)      2018            
               Maersk                                                       
----------------------------------------------------------------------------
17 SEALAND     A.P.       2000   6,648     11    30,375    October   27,365 
   ILLINOIS    Moller-                   years     (7)      2018            
               Maersk                                                       
----------------------------------------------------------------------------
18 MAERSK      A.P.       2003   6,644     11    38,865   November   31,398 
   KOLKATA     Moller-                   years     (8)      2019            
               Maersk                                                       
----------------------------------------------------------------------------
19 MAERSK      A.P.       2003   6,644     11    38,461   February   31,537 
   KINGSTON    Moller-                   years     (9)      2020            
               Maersk                                                       
----------------------------------------------------------------------------
20 MAERSK      A.P.       2003   6,644     11    38,418  April 2020  31,637 
   KALAMATA    Moller-                   years    (10)                      
               Maersk                                                       
----------------------------------------------------------------------------
21 VENETIKO    PIL        2003   5,928    1.0    14,500  March 2014  14,500 
   (ii)                                   year                              
----------------------------------------------------------------------------
22 MSC ROMANOS MSC        2003   5,050    5.3    28,000   November   28,000 
                                         years              2016            
----------------------------------------------------------------------------
23 ZIM NEW     ZIM        2002   4,992     13    23,150     July     23,150 
   YORK                                  years            2015(11)          
----------------------------------------------------------------------------
24 ZIM         ZIM        2002   4,992     13    23,150    August    23,150 
   SHANGHAI                              years            2015(11)          
----------------------------------------------------------------------------
25 ZIM PIRAEUS ZIM        2004   4,992     10    22,150  March 2014  37,775 
   (iii)                                 years    (12)                      
----------------------------------------------------------------------------
26 OAKLAND     Hapag      2000   4,890  8 years  30,500   September  30,500 
   EXPRESS     Lloyd                                        2016            
----------------------------------------------------------------------------
27 HALIFAX     Hapag      2000   4,890  8 years  30,500    October   30,500 
   EXPRESS     Lloyd                                        2016            
----------------------------------------------------------------------------
28 SINGAPORE   Hapag      2000   4,890  8 years  30,500   July 2016  30,500 
   EXPRESS     Lloyd                                                        
----------------------------------------------------------------------------
29 MSC         MSC        1988   4,828    7.8    20,000    August    20,000 
   MANDRAKI                              years              2017            
----------------------------------------------------------------------------
30 MSC MYKONOS MSC        1988   4,828    8.2    20,000   September  20,000 
                                         years              2017            
----------------------------------------------------------------------------
31 MSC ULSAN   MSC        2002   4,132    5.3    16,500  March 2017  16,500 
                                         years                              
----------------------------------------------------------------------------
32 MSC ANTWERP MSC        1993   3,883    4.3    17,500    August    17,500 
                                         years              2013            
----------------------------------------------------------------------------
33 MSC KYOTO   MSC        1981   3,876    9.5    13,500   September  13,500 
                                         years    (13)      2018            
----------------------------------------------------------------------------
34 KORONI      Eve
rgreen  1998   3,842  2 years  10,500  April 2014  11,403 
                                                  (14)                      
----------------------------------------------------------------------------
35 KYPARISSIA  Evergreen  1998   3,842  2 years  10,500   May 2014   11,370 
                                                  (15)                      
----------------------------------------------------------------------------
36 KARMEN      Sea        1991   3,351    1.5     7,000   May 2013    7,000 
               Consortium                years                              
----------------------------------------------------------------------------
37 MARINA      Evergreen  1992   3,351    1.1     8,000   June 2013   8,000 
                                         years                              
----------------------------------------------------------------------------
38 KONSTANTINA Evergreen  1992   3,351    1.0     7,550   September   7,550 
                                          year              2013            
----------------------------------------------------------------------------
39 AKRITAS     Hapag      1987   3,152  4 years  12,500    August    12,500 
               Lloyd                                        2014            
----------------------------------------------------------------------------
40 MSC         MSC        1986   2,633    4.8    10,000   July 2015  10,000 
   CHALLENGER                            years                              
----------------------------------------------------------------------------
41 MESSINI     Evergreen  1997   2,458    1.5     8,100   February    8,100 
                                         years              2014            
----------------------------------------------------------------------------
42 MSC REUNION MSC        1992   2,024  6 years  11,500   June 2014  11,500 
   (iv)                                                                     
----------------------------------------------------------------------------
43 MSC NAMIBIA MSC        1991   2,023    6.8    11,500   July 2014  11,500 
   II (iv)                               years                              
----------------------------------------------------------------------------
44 MSC SIERRA  MSC        1991   2,023    5.7    11,500   June 2014  11,500 
   II (iv)                               years                              
----------------------------------------------------------------------------
45 MSC PYLOS   MSC        1991   2,020  3 years  11,500    January   11,500 
   (iv)                                                     2014            
----------------------------------------------------------------------------
46 PROSPER     COSCO      1996   1,504    1.0     7,350  March 2014   7,350 
                                          year                              
----------------------------------------------------------------------------
47 ZAGORA      MSC        1995   1,162    3.7     5,700  April 2015   5,700 
                                         years                              
----------------------------------------------------------------------------
48 STADT       CMA CGM    2001   1.078    0.7     6,200   May 2013    6,200 
   LUEBECK (v)                           years                              
----------------------------------------------------------------------------

 
Newbuilds 


 
                                                                            
----------------------------------------------------------------------------
Vessel Name   Shipyard               Charterer       Expected      Capacity 
                                                     Delivery     (TEU)(16) 
                                                    (based on               
                                                 latest shipyard            
                                                    schedule)               
----------------------------------------------------------------------------
1 Hull S4020  Sungdong Shipbuilding  Evergreen       May 2013       8,827   
----------------------------------------------------------------------------
2 Hull S4021  Sungdong Shipbuilding  Evergreen      June 2013       8,827   
----------------------------------------------------------------------------
3 Hull S4022  Sungdong Shipbuilding  Evergreen      July 2013       8,827   
----------------------------------------------------------------------------
4 Hull S4023  Sungdong Shipbuilding  Evergreen     August 2013      8,827   
----------------------------------------------------------------------------
5 Hull S4024  Sungdong Shipbuilding  Evergreen    September 2013    8,827   
----------------------------------------------------------------------------
6 H1068A      Jiangnan Changxing     MSC          December 2013     9,403   
----------------------------------------------------------------------------
7 H1069A      Jiangnan Changxing     MSC          December 2013     9,403   
----------------------------------------------------------------------------
8 H1070A      Jiangnan Changxing     MSC          February 2014     9,403   
----------------------------------------------------------------------------
                                                                            
                                                                            
(1)   Charter terms and expiration dates are based on the earliest date     
      charters could expire.                                                
(2)   This average rate is calculated based on contracted charter rates for 
      the days remaining between April 24, 2013 and the earliest expiration 
      of each charter. Certain of our charter rates change until their      
      earliest expiration dates, as indicated in the footnotes below.       
(3)   This charter rate changes on May 8, 2014 to $26,100 per day until the 
      earliest redelivery date.                                             
(4)   This charter rate changes on June 30, 2014 to $26,100 per day until   
      the earliest redelivery date.                                         
(5)   This charter rate changes on August 24, 2014 to $26,100 per day until 
      the earliest redelivery date.                                         
(6)   This charter rate changes on October 20, 2014 to $26,100 per day until
      the earliest redelivery date.                                         
(7)   This charter rate changes on December 4, 2014 to $26,100 per day until
      the earliest redelivery date.                                         
(8)   This charter rate changes on January 13, 2016 to $26,100 per day until
      the earliest redelivery date.                                         
(9)   This charter rate changes on April 28, 2016 to $26,100 per day until  
      the earliest redelivery date.                                         
(10)  This charter rate changes on June 11, 2016 to $26,100 per day until   
      the earliest redelivery date.                                         
(11)  Charterers shall have the option to terminate the charter by giving   
      six months notice, in which case they will have to make a one-time    
      payment which shall be the $6.9 million reduced proportionately by the
      amount of time by which the original 3-year extension period is       
      shortened.                                                            
(12)  The charterer is required to pay approximately $5.0 million no later  
      than July 2016, representing accrued charter hire, the payment of     
      which was deferred.                                                   
(13)  As from December 1, 2012 until redelivery, the charter rate is to be a
      minimum of $13,500 per day plus 50% of the difference between the  
   
      market rate and the charter rate of $13,500. The market rate is to be 
      determined annually based on the Hamburg ConTex type 3500 TEU index   
      published on October 1 of each year until redelivery.                 
(14)  The charter rate will change to $11,500 per day, starting from May    
      2013 until the earliest redelivery date.                              
(15)  The charter rate will change to $11,500 per day, starting from June   
      2013 until the earliest redelivery date.                              
(16)  Based on updated vessel specifications.                               
                                                                            
                                                                            
(i)   The charterer has a unilateral option to extend the charter of the    
      vessel for two periods of 30 months each +/-90 days on the final      
      period performed, at a rate of $41,700 per day.                       
(ii)  The charterer has a unilateral option to extend the charter of the    
      vessel for a period of 12 months at a rate of $28,000 per day.        
(iii) The charterer has a unilateral option to extend the charter of the    
      vessel for a period of 12 months +/-60 days at a rate of $27,500 per  
      day.                                                                  
(iv)  Owners have a unilateral option to extend the charters of the vessels 
      for an additional period of two years at market rate, to be defined   
      annually, based on the closest category on the Contex index.          
(v)   The charterer has a unilateral option to extend the charter for an    
      additional six months after the initial period at a daily rate of     
      $8,500.                                                               
                                                                            
                                                                            
                                                                            
                               COSTAMARE INC.                               
                      Consolidated Statements of Income                     
                                                                            
                                                   Three-month period ended 
                                                           March 31,        
                                                   ------------------------ 
(Expressed in thousands of U.S. dollars, except                             
 share and per share data)                             2012         2013    
                                                   -----------  ----------- 
                                                                            
                                                          (Unaudited)       
REVENUES:                                                                   
Voyage revenue                                     $   100,031  $    91,536 
                                                                            
EXPENSES:                                                                   
Voyage expenses                                           (691)        (679)
Voyage expenses - related parties                         (741)        (692)
Vessels' operating expenses                            (27,692)     (27,880)
General and administrative expenses                       (925)        (963)
Management fees - related parties                       (3,749)      (3,890)
Amortization of dry-docking and special survey                              
 costs                                                  (1,948)      (2,050)
                                                                            
Depreciation                                           (20,013)     (19,882)
Gain (Loss) on sale/disposal of vessels                 (2,801)       2,909 
Foreign exchange gains                                     112           75 
                                                   -----------  ----------- 
Operating income                                   $    41,583  $    38,484 
                                                   -----------  ----------- 
                                                                            
OTHER INCOME (EXPENSES):                                                    
Interest income                                    $       284  $       209 
Interest and finance costs                             (20,240)     (17,564)
Other                                                     (123)         617 
Gain on derivative instruments                           3,030        2,989 
                                                   -----------  ----------- 
Total other income (expenses)                      $   (17,049) $   (13,749)
                                                   -----------  ----------- 
Net Income                                         $    24,534  $    24,735 
                                                   ===========  =========== 
                                                                            
                                                                            
Earnings per common share, basic and diluted       $      0.40  $      0.33 
                                                   ===========  =========== 
Weighted average number of shares, basic and                                
 diluted                                            61,124,176   74,800,000 
                                                   ===========  =========== 
                                                                            
                               COSTAMARE INC.                               
                        Consolidated Balance Sheets                         
                                                                            
                                                   As of          As of     
                                                December 31,    March 31,   
                                               -------------  ------------- 
   (Expressed in thousands of U.S. dollars)         2012           2013     
                                               -------------  ------------- 
                                                 (Audited)     (Unaudited)  
ASSETS                                                                      
CURRENT ASSETS:                                                             
Cash and cash equivalents                      $     267,321  $     182,880 
Restricted cash                                        5,330          5,483 
Receivables                                            2,237          7,473 
Inventories                                            9,398         10,457 
Due from related parties                               2,616          2,659 
Fair value of derivatives                                165              - 
Insurance claims receivable                            1,454          1,157 
Accrued charter revenue                                5,100          9,345 
Prepayments and other                                  1,862          4,320 
Vessel held for sale                                   4,441          3,660 
                                               -------------  ------------- 
Total current assets                           $     299,924  $     227,434 
                                               -------------  ------------- 
FIXED ASSETS, NET:                                                          
Advances for vessels acquisitions              $     339,552  $     369,692 
Vessels, net                                       1,582,345      1,680,309 
                                               -------------  ------------- 
Total fixed assets, net                        $   1,921,897  $   2,050,001 
                                               -------------  ------------- 
NON-CURRENT ASSETS:                                                         
Deferred charges, net                          $      34,099  $      32,926 
Restricted cash                                       41,992         43,044 
Accrued charter revenue                               13,422          7,927 
                                               -------------  ------------- 
Total assets                                   $   2,311,334  $   2,361,332 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
Current portion of long-term debt              $     162,169  $     178,749 
Accounts payable                                       5,882          7,137 
Accrued liabilities                                    9,292         11,778 
Unearned revenue                                       5,595          3,537 
Fair value of derivatives                             55,701         56,701 
Other current liabilities                             10,772          4,686 
                                               -------------  ------------- 
Total current liabilities                      $     249,411  $     262,588 
                                               -------------  ------------- 
NON-CURRENT LIABILITIES                                                     
Long-term debt, net of current portion         $   1,399,720  $   1,434,806 
Fair value of derivatives, net of current                                   
 portion                                             125,110        108,558 
Unearned revenue, net of current portion              16,641         19,107 
                                               -------------  ------------- 
Total non-current liabilities                  $   1,541,471  $   1,562,471 
                 
                              -------------  ------------- 
COMMITMENTS AND CONTINGENCIES                                               
STOCKHOLDERS' EQUITY:                                                       
Common stock                                   $           8  $           8 
Additional paid-in capital                           714,100        714,100 
Accumulated deficit                                  (40,814)       (36,275)
Accumulated other comprehensive loss                (152,842)      (141,560)
                                                                            
                                               -------------  ------------- 
Total stockholders' equity                     $     520,452  $     536,273 
                                               -------------  ------------- 
Total liabilities and stockholders' equity     $   2,311,334  $   2,361,332 
                                               =============  ============= 

  
Contacts: 
Company Contact:
Gregory Zikos 
Chief Financial Officer 
Konstantinos Tsakalidis - Business Development
Costamare Inc., Athens, Greece
Tel: (+30) 210-949-0000
Email: ir@costamare.com  
Investor Relations Advisor/ Media Contact: 
Nicolas Bornozis 
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, N.Y. 10169
Tel.: (+1) 212-661-7566
E-mail: costamare@capitallink.com 
 
 
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