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Box Ships Inc. Reports Quarter Ended March 31, 2013 Results And Declares Quarterly Dividend Of $0.12 Per Common Share



   Box Ships Inc. Reports Quarter Ended March 31, 2013 Results And Declares
                 Quarterly Dividend Of $0.12 Per Common Share

PR Newswire

ATHENS, Greece, April 25, 2013

ATHENS, Greece, April 25, 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 quarter
ended March 31, 2013.

                                                 Three Months Ended March 31,
Financial Highlights
                                                 2012           2013
(Expressed in United States Dollars)
Time charter revenues                            $16,082,713    $18,090,663
Amortization of above/below market time charters 492,004        1,298,642
Time charter revenues, adjusted^1                $16,574,717    $19,389,305
EBITDA^2                                         $10,006,559    $9,898,285
Adjusted EBITDA^2                                $10,777,537    $11,945,122
Net Income                                       $4,660,714     $4,017,285
Adjusted Net Income^2                            $5,431,692     $6,064,122
Earnings per common share (EPS), basic           $0.29          $0.16
Earnings per common share (EPS), diluted         $0.29          $0.15
Adjusted Earnings per common share, basic^2      $0.33          $0.26
Adjusted Earnings per common share, diluted^2    $0.33          $0.23

^1 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.

^2 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:

"Our sector is expected to remain under pressure through the remainder of
2013, driven primarily by the imbalance between supply and demand in the
containership industry. Despite these challenges, we believe that there are
also attractive opportunities for growth and accretive acquisitions. During
the quarter we successfully completed a follow-on offering of 4,000,000 common
shares, the net proceeds of which we expect to use for vessel acquisitions.
Our prudent business strategies enable us to overcome market instability and
announce another profitable quarter. Despite the lower re-chartering rates for
two of our vessels, we reported Adjusted EBITDA of $11.9 million, an increase
of $1.1 million, or 11% compared to the first quarter of 2012."

Mr. Bodouroglou concluded, "Consistent with our policy of returning cash to
our shareholders and our previous dividend guidance, our Board of Directors
has declared a dividend of $0.12 per share payable on or about May 16, 2013 to
shareholders of record on May 9, 2013. Since our IPO in April 2011, and
including this dividend declaration, we will have returned approximately $35.5
million in cash to our shareholders."

Results of Operations

Three months ended March 31, 2013 compared to three months ended March 31,
2012

During the first quarter of 2013, we operated an average of 9 vessels. Our Net
Income and Adjusted Net Income during the first quarter of 2013 were $4.0
million and $6.1 million, respectively, resulting in basic earnings per share
of $0.16 and basic adjusted earnings per share of $0.26. EBITDA and Adjusted
EBITDA for the first quarter of 2013 were $9.9 million and $11.9 million,
respectively.

During the first quarter of 2012, we operated an average of 7.00 vessels. Our
Net Income and Adjusted Net Income during the first quarter of 2012 were $4.7
million and $5.4 million, respectively, resulting in earnings per share of
$0.29 and adjusted earnings per share of $0.33, on both a basic and diluted
basis. EBITDA and Adjusted EBITDA for the first quarter of 2012 were $10.0
million and $10.8 million, respectively.

Net revenues

Net revenues represent charter hire earned, net of commissions. During the
first quarter of 2013 and 2012, our vessels operated a total of 793 and 636
days, respectively, from a total of 810 and 637 calendar days, respectively.
During the first quarter of 2013, we had 12 idle days related to the Box
Voyager, and 5 off-hire days related to the scheduled dry-docking of OOCL Hong
Kong, which was completed in April 2013, for a total of 17 off-hire days.
Currently, all vessels in our fleet are employed under fixed rate time
charters, having an average weighted remaining charter duration of 20 months
(weighted by aggregate contracted charter hire). The Company reported net
revenues for the first quarter of 2013 of $17.7 million, increased by 12.7%
compared to $15.7 million in the first quarter of 2012, due to the increased
fleet size and vessel operating days period over period, which was partially
offset by the lower re-chartering rates year over year for Box Trader and Box
Voyager and the idle days of Box Voyager in the first quarter of 2013. Our net
revenues are also net of the amortization of above/below market time charters,
which decreased our revenues and net income for the first quarter of 2013 and
2012 by $1.3 million and $0.5 million, respectively, or $0.06 and $0.03 per
common share, respectively. Our average time charter equivalent rate, or TCE
rate, for the first quarter of 2013 was $21,205 per vessel per day, which was
12.6% below our TCE rate of $24,249 per vessel per day during the first
quarter of 2012, due to the lower rates achieved on re-chartering our vessels.
Our adjusted TCE rate was $22,843 per vessel per day in the first quarter of
2013, 8.7% lower than our adjusted TCE of $25,022 for the first quarter of
2012, due to the lower re-chartering rates. 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 first quarter of 2013 and 2012 amounted to $0.9
million and $0.3 million, respectively, and mainly relate to war risk
insurance costs for our fleet and other crew costs reimbursable by the
charterers.

Vessels operating expenses

Vessels operating expenses comprise crew wages and related costs, insurance
and vessel registry costs, repairs and maintenance expenses (excluding
dry-docking expenses), the cost of spares and consumable stores, regulatory
fees, non-cash amortization of other intangible assets and other miscellaneous
expenses. The amortization of other intangible assets for the first quarter of
2013 and 2012 amounted to $0.3 million and $0, respectively. During the first
quarter of 2013, vessels operating expenses including the amortization of
other intangible assets amounted to $4.6 million, or $4.3 million on an
adjusted basis, compared to $3.5 million during the first quarter of 2012, due
to the increased number of vessels in our fleet year over year. On average,
our vessels operating expenses for the first quarter of 2013 were $5,641 per
vessel per day, or $5,319 per vessel per day on an adjusted basis, compared to
$5,495 per vessel per day, in the first quarter of 2012, an improvement of
approximately 3% year over year on a cash basis after adjusting for non-cash
items.

Dry-docking expenses

During the first quarter of 2013, one of our vessels the OOCL Hong Kong
commenced its scheduled dry-docking which was completed in April 2013. There
were no dry-docking expenses in the first quarter of 2012.

Management fees charged by a related party

Management fees charged by Allseas Marine S.A (our "Manager" or "Allseas") for
the first quarter of 2013 and 2012 were $0.7 million and $0.5 million,
respectively, or $840 per vessel per day and $812 per vessel per day,
respectively. The increase in management fees was due primarily to the
increased average number of vessels period over period. Management fees
charged by a related party represent fees for management and technical
services in accordance with our management agreements. 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 first quarter of 2013 and 2012 was $3.7
million and $3.3 million, respectively, mainly due to the increased number of
vessels period over period. Effective January 1, 2013, the Company revised its
scrap rate estimate prospectively from $150 to $300 per lightweight ton. The
change in accounting estimate does not have a retrospective effect in the
financial statements previously reported. The effect of this change was to
decrease depreciation expense and to increase net income by approximately $0.3
million, or $0.02 per basic common share for the three months ended March 31,
2013.

General and administrative expenses

General and administrative ("G&A") expenses for the first quarter of 2013 and
2012 were $1.6 million and $1.4 million, or $1,915 and $2,155 per day,
respectively. The increase in G&A expenses period over period was due
primarily to increased financial reporting fees, increased executive services
fees and increased share-based compensation expense. During the first quarter
of 2013 and 2012, expenses related to the provision of our executive services
by our Manager amounted to $0.55 million and $0.45 million, respectively, and
share-based compensation amounted to $0.5 million and $0.3 million,
respectively.

Interest and finance costs

Interest and finance costs amounted to $2.2 million and $2.0 million for the
first quarters of 2013 and 2012, 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)
                                                  Three Months Ended March 31,
                                                  2012             2013
Net cash from Operating Activities              $ 9,008,806     $  10,183,218
Net cash used in Investing Activities             (3,259)          -
Net cash (used in) / from Financing Activities    (9,322,800)      7,368,866
Net (decrease) / increase in cash and cash      $ (317,253)     $  17,552,084
equivalents

Net cash provided by Operating Activities

Net cash from Operating Activities for the three months ended March 31, 2013
was $10.2 million. Our vessels generated positive cash flows from revenues,
net of commissions, of $18.8 million, while we paid $8.6 million for expenses,
of which $1.9 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 three months ended March 31, 2012
was $9.0 million. Our vessels generated positive cash flows from revenues, net
of commissions, of $16.3 million, while we paid $7.3 million for expenses, of
which $1.8 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

For the three months ended March 31, 2013, there was no cash used in investing
activities. Net cash used in Investing Activities for the three months ended
March 31, 2012, was $3,259 relating to the acquisition of other fixed assets
installed on board our vessels to improve their efficiency.

Net cash from Financing Activities

Net cash from Financing Activities for the three months ended March 31, 2013,
was $7.4 million. On March 18, 2013, we completed the public offering and
issuance of 4,000,000 of our common shares, resulting in net proceeds of $20.0
million, net of underwriting discounts and commissions. During the three
months ended March 31, 2013, we repaid $6.7 million of our debt and paid
dividends to our preferred and common shareholders of $0.5 million and $5.5
million, in the aggregate, respectively.

Net cash used in Financing Activities for the three months ended March 31,
2012, was $9.3 million, relating to our scheduled debt repayments of $4.4
million and the payment of dividends to our common shareholders of $4.9
million.

Liquidity:

As of March 31, 2013, our cash and restricted cash (current and non-current)
amounted to $34.7 million in the aggregate, of which $10.0 million is
considered restricted for minimum liquidity purposes under our loan
agreements. As of March 31, 2013, we had total outstanding indebtedness of
$209.6 million, of which $26.7 million is scheduled to be repaid in the
forthcoming 12-month period, and we were in compliance with all of the
covenants contained in our loan agreements. 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.   

Dividends:

On April 25, 2013, our Board of Directors declared a dividend of $0.12 per
common share, with respect to the first quarter of 2013, payable on or about
May 16, 2013, to common shareholders of record as of the close of business on
May 9, 2013. This is the eighth consecutive quarterly dividend to common
shareholders since we became a public company in April 2011.

On April 2, 2013, we paid a dividend of $0.5 million for the period from
January 1, 2013 to March 31, 2013, to Neige International, the only holder of
our Series B-1 Preferred Shares. As of March 31, 2013, 640,692 Series B-1
Preferred Shares were outstanding.

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:

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 82%
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
April 25, 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       May 2013      2
CMA CGM        2007    5,095    CMA CGM      $23,000      April 2014    3
Kingfish
CMA CGM Marlin 2007    5,095    CMA CGM      $23,000      May 2014      3
Maersk Diadema 2006    4,546    Maersk       $28,000      January 2014  3,4
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 at the same gross daily
           charter rate.

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 first
quarter ended March 31, 2013 results on April 26, 2013 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 +1-877-870-5176 (domestic) and +1-858-384-5517
(international) and using passcode 10028125.

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 8.2 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, dry-docking 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 –

 

SUMMARY FLEET INFORMATION                       Three Months Ended March 31,
                                                2012           2013
FLEET DATA
Average number of vessels ^(1)                  7.00           9.00
Calendar days for fleet ^(2)                    637            810
Less:
Scheduled off-hire                              -              5
Unscheduled off-hire                            1              12
Operating days for fleet ^(3)                   636            793
Fleet utilization ^(4)                          99.8%          97.9%
AVERAGE DAILY RESULTS

(Expressed in United States Dollars)
Time charter equivalent ^(5)                    $24,249        $21,205
Vessel operating expenses ^(6)                  $5,495         $5,641
Management fees charged by a related party ^(7) $812           $840
General and administrative expenses ^(8)        $2,155         $1,915
Total vessel operating expenses ^(9)            $8,462         $8,396

 

    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, fuel costs and other crew costs
    reimbursable by the charterers 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 Reconciliation            Three Months Ended March 31,

(Expressed in United States Dollars)              2012           2013
Time Charter Revenues                             $16,082,713    $18,090,663
Commissions                                       (359,124)      (366,100)
Voyage Expenses                                   (301,441)      (908,692)
Total Revenue, net of voyage expenses             $15,422,148    $16,815,871
Plus: Amortization of above/below market time     492,004        1,298,642
charters
Total Revenue, net of voyage expenses, adjusted   $15,914,152    $18,114,513
Total operating days                              636            793
Time Charter Equivalent                           $24,249        $21,205
Time Charter Equivalent, adjusted^(10)            $25,022        $22,843

     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,
     port, canal, fuel costs and other crew costs reimbursable by the
(10) charterers 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 March 31,
Net Income / Adjusted Net Income^(1)
                                     2012           2013
 
Net Income                           $4,660,714     $4,017,285
Plus: Amortization of intangibles    492,004        1,559,109
Plus: Share-based compensation       278,974        487,728
Adjusted Net Income                  $5,431,692     $6,064,122
EBITDA / Adjusted EBITDA^(1)
Net income                           $4,660,714     $4,017,285
Plus: Net Interest expense           2,001,121      2,148,860
Plus: Depreciation                   3,344,724      3,732,140
EBITDA                               $10,006,559    $9,898,285
Plus: Amortization of intangibles    492,004        1,559,109
Plus: Share-based compensation       278,974        487,728
Adjusted EBITDA                      $10,777,537    $11,945,122

Earnings per Common Share                         Three Months Ended March 31,
                                                  2012           2013
Net income                                        $4,660,714     $4,017,285
Less: Dividends to Series B-1 Preferred Shares    -              (468,506)
Less: Net income attributable to non-vested share (92,940)       (91,062)
awards 
Net income available to common shareholders       $4,567,774     $3,457,717
Weighted average number of common shares, basic   16,000,000     21,016,604
Earnings per common share, basic                  $0.29          $0.16
Net income                                                       $4,017,285
Less: Dividends to Series B-1 Preferred Shares                   (468,506)
Less: Net income attributable to non-vested share                (91,062)
awards
Plus: Dividends to Series B-1 Preferred Shares,                  468,506
if converted to common shares
Net income available to common shareholders                      $3,926,223
Weighted average number of common shares, diluted                25,712,716
Earnings per common share, diluted                $0.29          $0.15

 

 

 

Adjusted Earnings per Common Share^(1)            Three Months Ended March 31,
                                                  2012           2013
Adjusted Net income                               $5,431,692     $6,064,122
Less: Dividends to Series B-1 Preferred Shares    -              (468,506)
Less: Adjusted Net income attributable to         (108,314)      (143,584)
non-vested share awards 
Adjusted Net income available to common           $5,323,378     $5,452,032
shareholders
Weighted average number of common shares, basic   16,000,000     21,016,604
Adjusted Earnings per common share, basic         $0.33          $0.26
Adjusted Net income                                              $6,064,122
Less: Dividends to Series B-1 Preferred Shares                   (468,506)
Less: Adjusted Net income attributable to                        (143,584)
non-vested share awards
Plus: Dividends to Series B-1 Preferred Shares,                  468,506
if converted to common shares
Adjusted Net income available to common                          $5,920,538
shareholders
Weighted average number of common shares, diluted                25,712,716
Adjusted Earnings per common share, diluted       $0.33          $0.23

 

    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 to Adjusted
    Net Income and Adjusted EPS. 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 items
    not 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 COMPREHENSIVE INCOME
(Expressed in United States Dollars, except for share data)
                                             Three Months Ended March 31,
                                             2012            2013
REVENUES:
Time charter revenues ^(1)                   16,082,713      18,090,663
Commissions                                  (359,124)       (366,100)
Net Revenues                                 15,723,589      17,724,563
EXPENSES:
Voyage expenses                              301,441         908,692
Vessels operating expenses ^(2)              3,500,215       4,569,222
Dry-docking expenses                         -               140,896
Management fees charged by a related party   517,475         680,671
Depreciation                                 3,344,724       3,732,140
General and administrative expenses ^(3)     1,372,532       1,550,840
Operating income                             6,687,202       6,142,102
OTHER INCOME (EXPENSES):
Interest and finance costs                   (2,008,532)     (2,150,452)
Interest income                              7,411           1,592
Foreign currency (loss) / gain, net          (25,367)        24,043
Total other expenses, net                    (2,026,488)     (2,124,817)
NET INCOME                                   4,660,714       4,017,285
Other Comprehensive Income / (Loss)
Unrealized (loss) / gain on cash flow hedges (69,873)        112,109
Total Other Comprehensive Income / (Loss)    (69,873)        112,109
COMPREHENSIVE INCOME                         4,590,841       4,129,394
Earnings per common share, basic             $0.29           $0.16
Earnings per common share, diluted           $0.29           $0.15

 

Footnotes:
(1)        includes amortization of below and above market acquired time
charters of $492,004 and $1,298,642 for the three months  ended March 31, 2012
and 2013, respectively 
(2)        includes amortization of other intangible assets of $0 and $260,467
for the three months ended March 31, 2012 and 2013, respectively
(3)        includes share-based compensation of $278,974 and $487,728 for the
three months ended March 31, 2012 and 2013, respectively

 

 

 

BOX SHIPS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
                                             December 31, 2012  March 31, 2013
ASSETS
Cash and restricted cash (current and        17,141,452         34,693,536
non-current)
Other current assets                         6,696,714          7,701,230
Vessels and other fixed assets, net and      421,225,703        415,437,812
other non-current assets
Total Assets                                 445,063,869        457,832,578
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt            36,700,000         26,700,000
Other current liabilities                    5,959,883          7,217,097
Long-term debt, net of current portion       179,550,000        182,875,000
Other non-current liabilities                2,074,703          1,623,564
Total stockholders' equity                   220,779,283        239,416,917
Total Liabilities and Stockholders' Equity   445,063,869        457,832,578

 

SOURCE Box Ships Inc.

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