Breaking News

Alibaba Indicated to Start Trading at $84 to $87
Tweet TWEET

Costamare Inc. Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2013

Costamare Inc. Reports Results for the Third Quarter and Nine-Month Period 
Ended September 30, 2013 
ATHENS, GREECE -- (Marketwired) -- 10/23/13 --  Costamare Inc.
("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited
financial results for the third quarter and nine months ended
September 30, 2013. 


 
--  Voyage revenues of $110.1 million and $301.7 million for the three and
    the nine months ended September 30, 2013, respectively.
    
    
--  Voyage revenues adjusted on a cash basis of $114.1 million and $312.4
    million for the three and the nine months ended September 30, 2013,
    respectively.
    
    
--  Adjusted EBITDA of $77.9 million and $206.7 million for the three and
    the nine months ended September 30, 2013, respectively.
    
    
--  Net income of $20.9 million and $76.2 million for the three and the
    nine months ended September 30, 2013, respectively.
    
    
--  Net income available to common stockholders of $20.4 million or $0.27
    per share and $75.7 million or $1.01 per share for the three and the
    nine months ended September 30, 2013, respectively.
    
    
--  Adjusted Net income available to common stockholders of $28.7 million
    or $0.38 per share and $78.4 million or $1.05 per share for the three
    and nine months ended September 30, 2013, respectively.

  
See "Financial Summary" and "Non-GAAP Measures" below for additional
detail. 
Business Developments 


 
--  On August 5 and September 2, 2013, the Company took delivery of the
    8,827 TEU newbuild containership vessels Valiant and Valence,
    respectively, which were both built by Sungdong Shipbuilding and
    Marine Engineering in South Korea. Upon delivery, both vessels
    commenced their long term charters with members of the Evergreen Group
    ("Evergreen").
    
    
--  In July 2013, pursuant to the Framework Agreement with York Capital
    Management ("York"), jointly-owned entities entered into two
    shipbuilding contracts for the construction of two container vessels
    of about 9,000 TEU capacity, subject to upgrade, to be delivered by
    the end of 2015. The Company agreed to participate in each of the
    newbuilding contracts by investing 49% of the share capital in the
    jointly-owned entities.
    
    
--  The Company sold the 1993-built, 3,883 TEU containership MSC Antwerp,
    for demolition for a sale price of approximately $7.8 million. The
    vessel was delivered to its buyers on September 9, 2013. The sale of
    the MSC Antwerp resulted in a book loss of $5.9 million.

  
Preferred Share Offering 


 
--  On August 6, 2013, the Company completed a public offering of 2.0
    million shares of its 7.625% Series B Cumulative Redeemable Perpetual
    Preferred Stock (the "Series B Preferred Stock"). The gross proceeds
    from the offering before the underwriting discount and other offering
    expenses were $50.0 million. We plan to use the net proceeds of this
    offering for general corporate purposes, including vessel acquisitions
    or investments under the Framework Agreement.

  
Dividend Announcements 


 
--  On October 1, 2013, the Company declared a cash dividend of $0.3654
    per share on its 7.625% Series B Preferred Stock for the period from
    August 6, 2013 to October 14, 2013. The dividend was paid on October
    15, 2013 to all Series B Preferred Stock holders of record as of
    October 11, 2013. This was the first cash dividend on its Series B
    Preferred Stock that the Company has declared since the commencement
    of trading of its Series B Preferred Stock on the New York Stock
    Exchange.
    
    
--  On October 8, 2013, the Company declared a common stock dividend for
    the third quarter ended September 30, 2013, of $0.27 per share,
    payable on November 6, 2013 to stockholders of record at the close of
    trading of the Company's common stock on the New York Stock Exchange
    on October 23, 2013. This will be the Company's twelfth consecutive
    quarterly common stock dividend since its common stock commenced
    trading on the New York Stock Exchange.

  
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc.,
commented: 
"During the third quarter of the year, the Company delivered positive
results.  
In accordance with our newbuilding program, we accepted delivery of
the fifth and sixth 9,000 TEU newbuild containership vessels out of a
series of ten. Both vessels commenced their charters. This addition
to the fleet, together with the newbuildings already delivered and
the remaining four vessels currently on order and subject to
charters, will contribute
 in excess of $1.3 billion of contracted
revenues throughout the duration of their charters. 
Regarding new transactions, together with our partners, York Capital,
we ordered two vessels with a capacity of 9,000 TEU, subject to
upgrade, to be delivered by the end of 2015. We are participating in
each of the two contracts with a 49% stake.  
Despite continuing challenging market conditions, our re-chartering
risk is minimized. The charters for the vessels opening in 2014
account for approximately 3% of our 2014 contracted revenues. 
Finally, on October 1 and on October 8 we declared a dividend of $
0.3654 per share on the 7.625% Series B Redeemable Perpetual
Preferred Stock and $ 0.27 per share on the Company's common stock
respectively. 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 management of our balance sheet."  


 
                                                                            
                              Financial Summary                             
                                                                            
                          Nine-month period ended   Three-month period ended
                               September 30,             September 30,      
                         ------------------------- -------------------------
(Expressed in thousands                                                     
 of U.S. dollars, except                                                    
 share and per share                                                        
 data):                      2012         2013         2012         2013    
                         ------------ ------------ ------------ ------------
                                                                            
                                                                            
Voyage revenue           $    290,962 $    301,700 $     94,886 $    110,134
Accrued charter revenue                                                     
 (1)                     $      3,909 $     10,673 $      2,924 $      4,039
Voyage revenue adjusted                                                     
 on a cash basis (2)     $    294,871 $    312,373 $     97,810 $    114,173
                                                                            
Adjusted EBITDA (3)      $    190,587 $    206,722 $     62,475 $     77,870
                                                                            
Adjusted Net Income                                                         
 available to common                                                        
 stockholders (3)        $     67,721 $     78,369 $     20,947 $     28,734
Wei
ghted Average number                                                     
 of shares                 65,582,847   74,800,000   67,800,000   74,800,000
Adjusted Earnings per                                                       
 share (3)               $       1.03 $       1.05 $       0.31 $       0.38
                                                                            
EBITDA (3)               $    181,064 $    204,003 $     54,045 $     69,495
Net Income               $     58,198 $     76,235 $     12,517 $     20,944
Net Income available to                                                     
 common stockholders     $     58,198 $     75,650 $     12,517 $     20,359
Weighted Average number                                                     
 of shares                 65,582,847   74,800,000   67,800,000   74,800,000
Earnings per share       $       0.89 $       1.01 $       0.18 $       0.27

 
(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 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 reconciliation 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 nine-month and three-month periods ended
September 30, 2013 and September 30, 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 available to common   
                                stockholders                                
                                                                            
                         Nine-month period ended   Three-month period ended 
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
(Expressed in thousands                                                     
 of U.S. dollars, except                                                    
 share and per share                                                        
 data)                       2012         2013         2012         2013    
                         ------------ -----------  -----------  ----------- 
                                                                            
Net Income               $     58,198 $    76,235  $    12,517  $    20,944 
Distributed earnings                                                        
 allocated to Preferred                                                     
 Stock                              -        (585)           -         (585)
                         ------------ -----------  -----------  ----------- 
Net Income available to                                                     
 common stockholders           58,198      75,650       12,517       20,359 
                         ------------ -----------  -----------  ----------- 
Accrued charter revenue         3,909      10,673        2,924        4,039 
(Gain)/ Loss on                                                             
 sale/disposal of                                                           
 vessels                        4,296        (518)       5,599        5,942 
Realized (Gain)/ Loss on                                                    
 Euro/USD forward                                                           
 contracts                        997        (615)         265         (245)
(Gain)/ Loss on                                                             
 derivative instruments           321      (6,821)        (358)      (1,361)
                                                                            
                         ------------ -----------  -----------  ----------- 
Adjusted Net income                                                         
 available to common                                                        
 stockholders            $     67,721 $    78,369  $    20,947  $    28,734 
                         ============ ===========  ===========  =========== 
Adjusted Earnings per                                                       
 Share                   $       1.03 $      1.05  $      0.31  $      0.38 
                         ============ ===========  ===========  =========== 
Weighted average number                                                     
 of shares                 65,582,847  74,800,000   67,800,000   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 Ne
t 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               
                                                                            
                         Nine-month period ended   Three-month period ended 
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
(Expressed in thousands                                                     
 of U.S. dollars)            2012         2013         2012         2013    
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
Net Income               $    58,198  $    76,235  $    12,517  $    20,944 
Interest and finance                                                        
 costs                        57,840       56,923       19,603       22,815 
Interest income               (1,173)        (448)        (457)         (39)
Depreciation                  60,182       65,158       20,301       23,669 
Amortization of dry-                                                        
 docking and special                                                        
 survey costs                  6,017        6,135        2,081        2,106 
                         -----------  -----------  -----------  ----------- 
EBITDA                       181,064      204,003       54,045       69,495 
Accrued charter revenue        3,909       10,673        2,924        4,039 
(Gain)/ Loss on                                                             
 sale/disposal of                                                           
 vessels                       4,296         (518)       5,599        5,942 
Realized (Gain)/ Loss on                                                    
 Euro/USD forward                                                           
 contracts                       997         (615)         265         (245)
Gain/ (Loss) on                                                             
 derivative instruments          321       (6,821)        (358)      (1,361)
                         -----------  -----------  -----------  ----------- 
Adjusted EBITDA          $   190,587  $   206,722  $    62,475  $    77,870 
                         ===========  ===========  ===========  =========== 

 
EBITDA represents net income before interest and finance costs,
interest income, depreciation and amortization of deferred
dry-docking and special survey costs. Adjusted EBITDA represents net
income before interest and finance costs, interest income,
depreciation, amortization of deferred dry-docking and 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 September 30, 2013 compared to the
three-month period ended September 30, 2012  
During the three-month periods ended September 30, 2013 and 2012, we
had an average of 51.0 and 47.1 vessels, respectively, in our fleet.
In the three-month period ended September 30, 2013, we accepted
delivery of the newbuild vessels Valiant and Valence with an
aggregate TEU capacity of 17,654, the secondhand vessel X-Press Padma
with a TEU capacity of 1,645, which was acquired pursuant to the
Framework Agreement with York, and we sold the vessel MSC Antwerp,
with a TEU capacity of 3,883. Furthermore, pursuant to the Framewor
k
Agreement with York, we signed shipbuilding contracts with a shipyard
for the construction of two container vessels of about 9,000 TEU
capacity, subject to upgrade. In the three-month period ended
September 30, 2012, we accepted delivery of the secondhand vessels
Stadt Luebeck and Messini with an aggregate TEU capacity of 3,536,
and we sold the secondhand vessel Horizon for scrap with a TEU
capacity of 1,068. In the three-month periods ended September 30,
2013 and 2012, our fleet ownership days totaled 4,696 and 4,337 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.  Three-month period                          
           dollars,                    ended                                
      except percentages)          September 30,                            
                               --------------------                         
                                                                Percentage  
                                  2012       2013      Change     Change    
                               ---------  ---------                         
                                                                            
                                                                            
Voyage revenue                 $    94.9  $   110.1  $    15.2        16.0% 
Voyage expenses                     (1.7)      (0.6)      (1.1)      (64.7%)
Voyage expenses - related                                                   
 parties                            (0.7)      (0.8)       0.1        14.3% 
Vessels operating expenses         (28.3)     (29.6)       1.3         4.6% 
General and administrative                                                  
 expenses                           (1.0)      (1.0)         -           -  
Management fees - related                                                   
 parties                            (3.8)      (4.3)       0.5        13.2% 
Amortization of dry-docking                                                 
 and special survey costs           (2.1)      (2.1)         -           -  
Depreciation                       (20.3)     (23.7)       3.4        16.7% 
Loss on sale/disposal of                                                    
 vessels                            (5.6)      (5.9)       0.3         5.4% 
Foreign exchange losses             (0.1)      (0.1)         -           -  
Interest income                      0.4          -       (0.4)     (100.0%)
Interest and finance costs         (19.6)     (22.8)       3.2        16.3% 
Equity gain on investments             -        0.3        0.3       100.0% 
Gain on derivative instruments       0.4        1.4        1.0       250.0% 
                               ---------  ---------                         
Net Income                     $    12.5  $    20.9                         
                               =========  =========                         
                                                                            
                                                                            
                                                                            
(Expressed in millions of U.S.                                              
           dollars,              Three-month period                         
      except percentages)       ended September 30,                         
                               ---------------------                        
                                                                 Percentage 
                                  2012       2013      Change      Change   
                               ---------- ----------                        
                                                                            
Voyage revenue                 $     94.9 $    110.1 $     15.2        16.0%
Accrued charter revenue               2.9        4.0        1.1        37.9%
                               ---------- ----------                        
Voyage revenue adjusted on a                                                
 cash basis                    $     97.8 $    114.1 $     16.3        16.7%
                               ========== ==========                        
                                                                            
                                                                            
                                                                            
                                   Three-month period                       
Fleet operational data             ended September 30,                      
                                  --------------------                      
                                                                 Percentage 
                                     2012      2013     Change     Change   
                                  --------------------                      
                                                                            
Average number of vessels               47.1      51.0      3.9         8.3%
Ownership days                         4,337     4,696      359         8.3%
Number of vessels under dry-                                                
 docking                                   4         2       (2)            

 
Voyage Revenue 
Voyage revenue increased by 16.0%, or $15.2 million, to $110.1
million during the three-month period ended September 30, 2013, from
$94.9 million during the three-month period ended September 30, 2012.
This increase is mainly due to (i) revenue earned by the newbuild
vessels delivered to us during the nine month period ended September
30, 2013; partly offset by (ii) decreased charter rates in certain of
our vessels during the three-month period ended September 30, 2013,
compared to the three-month period ended September 30, 2012, and
(iii) revenues not earned by vessels which were sold for scrap during
the nine month period ended September 30, 2013. 
Voyage revenue adjusted on a cash basis (which eliminates non-cash
"Accrued charter revenue"), increased by 16.7%, or $16.3 million, to
$114.1 million during the three-month period ended September 30,
2013, from $97.8 million during the three-month period ended
September 30, 2012. This increase is mainly due to (i) revenue earned
by the newbuild vessels delivered to us during the nine month period
ended September 30, 2013; partly offset by (ii) decreased charter
rates in certain of our vessels during the three-month period ended
September 30, 2013, compared to the three-month period ended
September 30, 2012, and (iii) revenues not earned by vessels which
were sold for scrap during the nine month period ended September 30,
2013. 
Voyage Expenses 
Voyage expenses decreased by 64.7% or $1.1 million, to $0.6 million
during the three-month period ended September 30, 2013, from $1.7
million during the three-month period ended September 30, 2012.
Voyage expenses mainly include (i) off-hire expenses of our fleet,
mainly related to fuel consumption and (ii) third party commissions.
The decrease during the three month period ended September 30, 2013,
compared to the three month period ended September 30, 2012, is
mainly attributable to the decreased off-hire expenses, mainly
relating to bunkers consumption.  
Voyage Expenses - related parties 
Voyage expenses - related parties in the amount of $0.8 million
during the three month period ended September 30, 2013 and in the
amount of $0.7 million during the three-month period ended September
30, 2012, represent fees of 0.75% on voyage revenues charged to us by
Costamare Shipping Company S.A. as provided under our group
management agreement.  
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 4.6%, or $1.3 million, to $29.6
million during the three-month period ended September 30, 2013, from
$28.3 million during the three-month period ended September 30, 2012.
The increase was partly attributable to the increased ownership days
of our fleet during the three-month period ended September 30, 2013
compared to the three-month period ended September 30, 2012. 
General and Administrative Expenses 
General and administrative expenses were $1.0 million during the
three-month period ended September 30, 2013 and for the three-month
period ended September 30, 2012. General and administrative expenses
for the three-month periods ended September 30, 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 group management agreement.  
Management Fees - related parties 
Management fees paid to our managers increased by 13.2%, or $0.5
million, to $4.3 million during the three-month period ended
September 30, 2013, from $3.8 million during the three-month period
ended September 30, 2012. The increase was primarily attributable to
(i) the inflation related upward adjustment by 4% of the management
fee for each vessel (effective January 1, 2013), as provided under
our group management agreement and (ii) the increased average number
of vessels during the three month period ended September 30, 2013,
compared to the three month period ended September 30, 2012. 
Amortization of Dry-docking and Special Survey Costs  
Amortization of deferred dry-docking and special survey costs was
$2.1 million for the three-month period ended September 30, 2013 and
$2.1 million for the three-month period ended September 30, 2012.
During the three-month periods ended September 30, 2013 and 2012, two
vessels and four vessels, respectively, underwent their special
survey. During the three-month period ended September 30, 2013, three
vessels (one of which was in process as at June 30, 2013) completed
their respective works. During the three-month period ended September
30, 2012, four vessels completed their respective works.  
Depreciation  
Depreciation expense increased by 16.7%, or $3.4 million, to $23.7
million during the three-month period ended September 30, 2013, from
$20.3 million during the three-month period ended September 30, 2012.
The increase was mainly attributable to the depreciation expense
charged for the six newbuilding vessels delivered to us during the
nine month period ended September 30, 2013, partly offset by the
depreciation expense not charged for the vessels sold for scrap
during the nine month period ended September 30, 2013.  
Loss on Sale/Disposal of Vessels 
During the three-month period ended September 30, 2013, we recorded a
loss of $5.9 million from the sale of one vessel. During the
three-month period ended September 30, 2012, we recorded a net loss
of $5.6 million from the sale of the vessel Horizon (including the
effect of the partial reversal of a provision recorded in 2011 for
costs associated with the grounding of the vessel Rena). 
Foreign Exchange Losses 
Foreign exchange losses were $0.1 million during the three-month
period ended September 30, 2013 and $0.1 million during the
three-month period ended September 30, 2012. 
Interest Income 
Interest income decreased by 100.0% or $0.4 million, to nil during
the three-month period ended September 30, 2013, from $0.4 million
during the three month period ended September 30, 2012. The decrease
is mainly attributable to the decreased average cash balance during
the three month period ended September 30, 2013, compared to the
three month period ended September 30, 2012. 
Interest and Finance Costs  
Interest and finance costs increased by 16.3%, or $3.2 million, to
$22.8 million during the three-month period ended September 30, 2013,
from $19.6 million during the three-month period ended September 30,
2012. The increase is mainly attributable to the increased interest
expense charged to the consolidated income statement in relation with
the loan facilities of the six newbuild vessels which were delivered
to us during the nine month period ended September 30, 2013.  
Equity Gain on Investments 
The equity gain on investments of $0.3 million represents our share
of the net earnings of five jointly owned ship-owning companies
acquired pursuant to the Framework Agreement with York. We hold 49%
of the capital stock of each ship-owning company. 
Gain on Derivative Instruments 
The fair value of our 27 interest rate derivative instruments which
were outstanding as of September 30, 2013, equates to the amount that
would be paid by us or to us should those instruments be terminated.
As of September 30, 2013, the fair value of these 27 interest rate
derivative instruments in aggregate amounted to a liability of $114.7
million. Twenty-six of the 27 interest rate derivative instruments
that were outstanding as at September 30, 2013, qualified for hedge
accounting and the effective portion of the change in their fair
value is recorded in "Other Comprehensive Income" ("OCI"). For the
three-month period ended September 30, 2013, a net gain of $1.8
million has been included in "OCI" and a gain of $1.4 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 September 30, 2013.  
Cash Flows 
Three-month periods ended September 30, 2013 and 2012 


 
                                                                            
                                                   Three-month period ended 
Condensed cash flows                                     September 30,      
                                                   ------------------------ 
(Expressed in millions of U.S. dollars)                2012         2013    
                                                   -----------  ----------- 
Net Cash Provided by Operating Activities          $      39.4  $      50.8 
Net Cash Used in Investing Activities              $     (55.3) $    (148.2)
Net Cash Provided by (Used in) Financing                                    
 Activities                                        $      (8.6) $     105.4 

 
Net Cash Provided by Operating Activities  
Net cash flows provided by operating activities for the three-month
period ended September 30, 2013, increased by $11.4 million to $50.8
million, compared to $39.4 million for the three-month period ended
September 30, 2012. The increase was primarily attributable to
increased cash from operations of $16.4 million due to cash generated
from the charters of the six newbuild vessels delivered to us during
the nine month period ended September 30, 2013 and to decreased
dry-docking payments of $2.5 million, partly offset by unfavorable
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 $3.3 million and increased
payments for interest (including swap payments) of $4.3 million. 
Net Cash Used in Investing Activities 
Net cash used in investing activities was $ 148.2 million in the
three-month period ended September 30, 2013, which consisted of (a)
$158.4 million advance payments for the construction and purchase of
three newbuild vessels, (b) $4.3 million in payments for the
acquisition of one secondhand vessel, (c) $8.8 million in payments,
pursuant to the Framework Agreement with York, to hold a 49% equity
interest in jointly-owned companies, (d) $7.2 million net proceeds we
received from the sale for scrap of MSC Antwerp and (e) $16.0 million
received, pursuant to the Framework Agreement with York, for York's
51% equity interest in the ship-owning companies which own the
vessels Petalidi, Ensenada Express and X-Press Padma and for initial
working capital for such ship-owning companies. 
Net cash used in investing activities was $55.3 million in the
three-month period ended September 30, 2012, which consisted of (a)
$39.9 million advance payments for the construction and purchase of
four newbuild vessels, (b) $18.8 million in payments for the
acquisition of two secondhand vessels and (c) $3.4 million we
received from the sale of one vessel. 
Net Cash Provided By (Used In) Financing Activities 
Net cash provided by financing activities was $105.4 million in the
three-month period ended September 30, 2013, which mainly consisted
of (a) $46.3 million of indebtedness that we repaid, (b) $126.0
million we drew down from three of our credit facilities (
c) $20.2
million we paid for dividends to our stockholders for the second
quarter of 2013 and (d) $48.0 million net proceeds we received from
our public offering in August 2013, of 2.0 million shares of our
7.625% Series B Cumulative Redeemable Perpetual Preferred Shares, net
of underwriting discounts and expenses incurred in the offering. 
Net cash used in financing activities was $8.6 million in the three
month period ended September 30, 2012, which mainly consists of (a)
$39.1 million of indebtedness that we repaid, (b) $41.9 million we
drew down from three of our credit facilities, (c) $18.3 million we
paid for dividends to our stockholders for the second quarter of the
year 2012  
Results of Operations 
Nine-month period ended September 30, 2013 compared to the nine-month
period ended September 30, 2012 
During the nine month periods ended September 30, 2013 and 2012, we
had an average of 49.0 and 46.7 vessels, respectively, in our fleet.
In the nine-month period ended September 30, 2013, we accepted
delivery of the newbuild vessels MSC Athens, MSC Athos, Valor, Value,
Valiant and Valence with an aggregate TEU capacity of 52,962, the
secondhand vessel Venetiko with a TEU capacity of 5,928, the
secondhand vessels Petalidi, Ensenada Express and X-Press Padma,
which were acquired pursuant to the Framework Agreement with York,
with an aggregate TEU capacity of 8,383, and we sold three vessels
MSC Washington, MSC Austria and MSC Antwerp with an aggregate TEU
capacity of 11,343. Furthermore, pursuant to the Framework Agreement
with York, we signed shipbuilding contracts with a shipyard for the
construction of two container vessels of about 9,000 TEU, subject to
upgrade. In the nine-month period ended September 30, 2012, we
accepted delivery of five secondhand vessels MSC Ulsan, Koroni,
Kyparissia, Stadt Luebeck and Messini with an aggregate TEU capacity
of 15,352 and we sold four vessels Gather, Gifted, Genius I and
Horizon with an aggregate TEU capacity of 9,834. In the nine-month
periods ended September 30, 2013 and 2012, our fleet ownership days
totaled 13,373 and 12,789 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.   Nine-month period                          
           dollars,                    ended                                
      except percentages)          September 30,                            
                               --------------------                         
                                                                Percentage  
                                  2012       2013      Change     Change    
                               ---------  ---------                         
                                                                            
                                                                            
Voyage revenue                 $   291.0      301.7  $    10.7         3.7% 
Voyage expenses                     (4.0)      (2.5)      (1.5)      (37.5%)
Voyage expenses - related                                                   
 parties                            (2.2)      (2.3)       0.1         4.5% 
Vessels operating expenses         (84.7)     (85.9)       1.2         1.4% 
General and administrative                                                  
 expenses                           (3.1)      (3.3)       0.2         6.5% 
Management fees - related                                                   
 parties                           (11.4)     (12.3)       0.9         7.9% 
Amortization of dry-docking                                                 
 and special survey costs           (6.0)      (6.1)       0.1         1.7% 
Depreciation                       (60.2)     (65.2)       5.0         8.3% 
Gain/ (Loss) on sale/disposal                                               
 of vessels                         (4.3)       0.5        4.8       111.6% 
Foreign exchange gains               0.2        0.2          -           -  
Interest income                      1.1        0.4       (0.7)      (63.6%)
Interest and finance costs         (57.8)     (56.9)      (0.9)       (1.6%)
Equity gain on investments             -        0.3        0.3       100.0% 
Other                               (0.1)       0.8        0.9       900.0% 
Gain/ (loss) on derivative                                                  
 instruments                        (0.3)       6.8        7.1     2,366.7% 
                               ---------  ---------                         
Net Income                     $    58.2  $    76.2                         
                               =========  =========                         
                                                                            
                                                                            
(Expressed in millions of U.S.   Nine-month period                          
           dollars,                    ended                                
      except percentages)          September 30,                            
                               --------------------                         
                                                                Percentage  
                                  2012       2013      Change     Change    
                               ---------  ---------                         
                                                                            
Voyage revenue                 $   291.0  $   301.7  $    10.7         3.7% 
Accrued charter revenue              3.9       10.7        6.8       174.4% 
                               ---------  ---------                         
Voyage revenue adjusted on a                                                
 cash basis                    $   294.9  $   312.4  $    17.5         5.9% 
                               =========  =========                         
                                                                            
                                                                            
                                 Nine-month period                          
                                       ended                                
Fleet operational data             September 30,                            
                               ---------------------                        
                                                                 Percentage 
                                  2012       2013      Change      Change   
                               ---------- ----------                        
                                                                            
Average number of vessels            46.
7       49.0        2.3         4.9%
Ownership days                     12,789     13,373        584         4.6%
Number of vessels under dry-                                                
 docking                                6          7          1             

 
Voyage Revenue 
Voyage revenue increased by 3.7%, or $10.7 million, to $301.7 million
during the nine-month period ended September 30, 2013, from $291.0
million during the nine-month period ended September 30, 2012. The
increase in Voyage revenue is mainly due to (i) the revenue earned by
the six newbuild vessels delivered to us during the nine month period
ended September 30, 2013; partly offset (ii) by decreased charter
rates in certain of our vessels during the nine-month period ended
September 30, 2013, compared to the nine-month period ended September
30, 2012, and (iii) revenues not earned by vessels which were sold
for scrap during the nine m
onth period ended September 30, 2013. 
Voyage revenue adjusted on a cash basis (which eliminates non-cash
"Accrued charter revenue"), increased by 5.9%, or $17.5 million, to
$312.4 million during the nine-month period ended September 30, 2013,
from $294.9 million during the nine-month period ended September 30,
2012. The increase is attributable to the cash revenue earned by the
six newbuild vessels delivered to us during the nine month period
ended September 30, 2013; partly offset by cash revenue not earned
from vessels disposed during the nine month period ended September
30, 2013. 
Voyage Expenses 
Voyage expenses decreased by 37.5%, or $1.5 million, to $2.5 million
during the nine-month period ended September 30, 2013, from $4.0
million during the nine-month period ended September 30, 2012. The
decrease was primarily attributable to the decreased off-hire
expenses of our fleet, mainly bunkers consumption and by the
decreased third party commissions charged to us during the nine month
period ended September 30, 2013, compared to the nine month period
ended September 30, 2012. 
Voyage Expenses - related parties 
Voyage expenses - related parties increased by 4.5% or $0.1 to $2.3
million during the nine-month period ended September 30, 2013, from
$2.2 million during the nine-month period ended September 30, 2012
and represent fees of 0.75% on voyage revenues charged to us by
Costamare Shipping Company S.A. as provided under our group
management agreement. 
Vessels' Operating Expenses 
Vessels' operating expenses, which also includes the realized gain
/(loss) under derivative contracts entered into in relation to
foreign currency exposure, increased by 1.4% or $1.2 million to $85.9
million during the nine-month period ended September 30, 2013, from
$84.7 million during the nine-month period ended September 30, 2012.
The increase was mainly attributable to the increased ownership days
of our fleet during the nine-month period ended September 30, 2013
compared to the nine-month period ended September 30, 2012. 
General and Administrative Expenses 
General and administrative expenses increased by 6.5%, or $0.2
million, to $3.3 million during the nine-month period ended September
30, 2013, from $3.1 million during the nine-month period ended
September 30, 2012. Furthermore, General and administrative expenses
for the nine-month periods ended September 30, 2013 and September 30,
2012, include $0.75 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 group management agreement.  
Management Fees - related parties 
Management fees paid to our managers increased by 7.9%, or $0.9
million, to $12.3 million during the nine-month period ended
September 30, 2013, from $11.4 million during the nine-month period
ended September 30, 2012. The increase was primarily attributable to
(i) the inflation related upward adjustment by 4% of the management
fee for each vessel (effective January 1, 2013), as provided under
our group management agreement and (ii) the increased average number
of vessels during the nine month period ended September 30, 2013,
compared to the nine month period ended September 30, 2012.  
Amortization of Dry-docking and Special Survey Costs 
Amortization of deferred dry-docking and special survey costs for the
nine-month periods ended September 30, 2013 and 2012, was $6.1
million and $6.0 million, respectively. During the nine-month periods
ended September 30, 2013 and 2012, seven vessels and six vessels,
respectively, underwent their special surveys. 
Depreciation 
Depreciation expense increased by 8.3%, or $5.0 million, to $65.2
million during the nine-month period ended September 30, 2013, from
$60.2 million during the nine-month period ended September 30, 2012.
The increase was primarily attributable to the depreciation expense
charged for the six newbuild vessels delivered to us during the nine
month period ended September 30, 2013. 
Gain/ (Loss) on Sale/Disposal of Vessels 
During the nine-month period ended September 30, 2013, we recorded a
net gain of $0.5 million from the sale of three vessels. During the
nine-month period ended September 30, 2012, we recorded a net loss of
$4.3 million mainly from the sale of four vessels (including the
effect of the partial reversal of a provision recorded in 2011 for
costs associated with the grounding of the vessel Rena). 
Foreign Exchange Gains 
Foreign exchange gains amounted to $0.2 million and $0.2 million
during the nine-month periods ended September 30, 2013 and 2012,
respectively. 
Interest Income 
During the nine-month period ended September 30, 2013, interest
income decreased by 63.6%, or $0.7 million, to $0.4 million from $1.1
million during the nine-month period ended September 30, 2012.  
Interest and Finance Costs 
Interest and finance costs decreased by 1.6%, or $0.9 million, to
$56.9 million during the nine-month period ended September 30, 2013,
from $57.8 million during the nine-month period ended September 30,
2012. The decrease is mainly attributable to (i) the capitalized
interest in relation with our newbuilding program, (ii) the decreased
commitment fees charged to us, partly offset by the increased
interest expense charged to our consolidated income statement in
relation with the loan facilities of the six newbuild vessels which
were delivered to us during the nine month period ended September 30,
2013. 
Equity Gain on Investments 
The equity gain on investments of $0.3 million represents our share
of the net earnings of five jointly owned ship-owning companies
acquired pursuant to the Framework Agreement with York. We hold 49%
of the capital stock of each ship-owning company. 
Gain/ (Loss) on Derivative Instruments 
The fair value of our 27 interest rate derivative instruments which
were outstanding as of September 30, 2013, equates to the amount that
would be paid by us or to us should those instruments be terminated.
As of September 30, 2013, the fair value of these 27 interest rate
derivative instruments in aggregate amounted to a liability of $114.7
million. Twenty-six of the 27 interest rate derivative instruments
that were outstanding as at September 30, 2013, qualified for hedge
accounting and the effective portion of the change in their fair
value is recorded in "Other Comprehensive Income" ("OCI"). For the
nine-month period ended September 30, 2013, a gain of $59.1 million
has been included in "OCI" and a gain of $7.0 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
nine-month period ended September 30, 2013. 
Cash Flows 
Nine-month periods ended September 30, 2013 and 2012 


 
                                                                            
                                                                            
                                                   Nine-month periods ended 
Condensed cash flows                                     September 30,      
                                                   ------------------------ 
(Expressed in millions of U.S. dollars)                2012         2013    
                                                   -----------  ----------- 
Net Cash Provided by Operating Activities          $     123.4  $     128.9 
Net Cash Used in Investing Activities              $    (162.0) $    (513.1)
Net Cash Provided by Financing Activities          $     157.7  $     237.3 

 
Net Cash Provided by Operating Activities 
Net cash flows provided by operating activities for the nine-month
period ended September 30, 2013, increased by $5.5 million to $128.9
million, compared to $123.4 million for the nine-month period ended
September 30, 2012. The increase was primarily attributable to
increased cash from o
perations of $17.5 million due to cash generated
from the charters of the six newbuild vessels delivered to us during
the nine month period ended September 30, 2013 and to decreased
dry-docking payments of $2.7 million, partly offset by unfavorable
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 $15.0 million and increased
payments for interest (including swap payments) of $2.8 million. 
Net Cash Used in Investing Activities 
Net cash used in investing activities was $513.1 million in the
nine-month period ended September 30, 2013, which consisted primarily
of (a) $482.4 million advance payments for the construction and
purchase of ten newbuild vessels, (b) $51.9 million in payments for
the acquisition of four secondhand vessels, (c) $8.8 million in
payments, pursuant to the Framework Agreement with York, to hold a
49% equity interest in jointly-owned companies, (d) $13.9 million net
proceeds we received from the sale for scrap of MSC Antwerp and MSC
Austria (including $0.6 million in payments for expenses related to
the sale of MSC Washington) and (e) $16.0 million we received,
pursuant with the Framework Agreement with York, for York's 51%
equity interest in the ship-owning companies of the vessels Petalidi,
Ensenada Express and X-Press Padma and for initial working capital
for such ship-owning companies. 
Net cash used in investing activities was $162.0 million in the
nine-month period ended September 30, 2012, which primarily consisted
of (a) $109.0 million advance payments for the construction and
purchase of seven newbuild vessels, (b) $73.7 million in payments for
the acquisition of five secondhand vessels, and (c) $20.8 million we
received from the sale of four vessels.  
Net Cash Provided By Financing Activities 
Net cash provided by financing activities was $237.3 million in the
nine-month period ended September 30, 2013, which mainly consisted of
(a) $120.5 million of indebtedness that we repaid, (b) $ 377.8
million we drew down from four of our credit facilities, (c) $60.6
million we paid for dividends to our stockholders for the fourth
quarter of the year ended December 31, 2012, and the first and second
quarters of 2013 and (d) $48.0 million net proceeds we received from
our public offering in August 2013 of 2.0 million shares of our
7.625% Series B Cumulative Redeemable Perpetual Preferred Shares, net
of underwriting discounts and expenses incurred in the offering. 
Net cash provided by financing activities was $157.7 million in the
nine-month period ended September 30, 2012, which mainly consisted of
(a) $129.3 million of indebtedness that we repaid, (b) $241.2 million
we drew down from five of our credit facilities, (c) $52.9 million,
we paid for dividends to our stockholders for the fourth quarter of
the year ended December 31, 2011, and the first and second quarters
of 2012 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 September 30, 2013, we had a total cash liquidity of $ 175.1
million, consisting of cash, cash equivalents and restricted cash. 
Debt-free vessels 
As of October 23, 2013, the following vessels were free of debt.  


 
                    Unencumbered Vessels in the water(*)                    
          (refer to fleet list on page 18 for full charter details)         
                                                                            
                                          Year                  TEU         
Vessel Name                              Built                Capacity      
-------------------------------- --------------------- ---------------------
NAVARINO                                  2010                 8,531        
VENETIKO                                  2003                 5,928        
MESSINI                                   1997                 2,458        

 
(*) Does not include three secondhand vessels acquired and two
newbuild vessels ordered pursuant to the Framework Agreement with
York, which are also free of debt.  
Capital commitments 
As of October 23, 2013, we had outstanding commitments relating to
our contracted newbuilds aggregating approximately $200.0 million
payable in installments until the vessels are delivered.  
Conference Call details: 
On Thursday, October 24, 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: 1-866-524-3160 (from the
US), 0808 238 9064 (from the UK) or +1-412-317-6760 (from outside the
US). Please quote "Costamare". 
A replay of the conference call will be available until November 25,
2013. The United States replay number is +1-877-344-7529; the
standard international replay number is +1-412-317-0088, and the
access code required for the replay is: 10035479. 
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 60 containerships,
with a total capacity in excess of 350,000 TEU, including six
newbuild containerships on order. Five of our containerships,
including two newbuilds, have been acquired pursuant to the Framework
Agreement with York Capital Management LLC by vessel-owning joint
venture entities in which we hold a 49% equity interest. The
Company's common stock and Series B Preferred Stock trade on the New
York Stock Exchange under the symbols "CMRE" and "CMRE PR B",
respectively. 
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 October 23,
2013, about our fleet of 60 containerships, including our newbuilds
on order and the vessels acquired pursuant to the Framework Agreement
with York. Each vessel is a cellular containership, meaning it is a
dedicated container vessel. 


 
                                                                            
----------------------------------------------------------------------------
                                                                     Average
                                                                      Daily 
                                                                     Charter
                                                Current               Rate  
                                                 Daily                Until 
   Vessel                Year C
apacity   Time   Charter  Expiration Earliest
   Name       Charterer Built   (TEU)  Charter   Rate        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 2018 36,400 
   NINGBO                               years                               
----------------------------------------------------------------------------
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 2023 42,000 
                                        years                               
----------------------------------------------------------------------------
7  MSC ATHOS  MSC        2013   8,827     10    42,000    February   42,000 
                                        years               2023            
----------------------------------------------------------------------------
8  VALOR      Evergreen  2013   8,827  7 years  41,700   April 2020  41,700 
                                         (i)                 (i)            
----------------------------------------------------------------------------
9  VALUE      Evergreen  2013   8,827  7 years  41,700      April    41,700 
                                         (i)               2020(i)          
----------------------------------------------------------------------------
10 VALIANT    Evergreen  2013   8,827  7 years  41,700  June 2020(i) 41,700 
                                         (i)                                
----------------------------------------------------------------------------
11 VALENCE    Evergreen  2013   8,827  7 years  41,700  July 2020(i) 41,700 
                                         (i)                                
----------------------------------------------------------------------------
12 NAVARINO              2010   8,531                                       
----------------------------------------------------------------------------
13 MAERSK     A.P.       1997   7,403     10    37,000    December   37,000 
   KAWASAKI   Moller-                   years               2017            
   (ii)       Maersk                                                        
----------------------------------------------------------------------------
14 MAERSK     A.P.       1996   7,403     10    37,000    December   37,000 
   KURE(ii)   Moller-                   years               2017            
              Maersk                                                        
----------------------------------------------------------------------------
15 MAERSK     A.P.       1997   7,403     10    37,000    February   37,000 
   KOKURA(ii) Moller-                   years               2018            
              Maersk                                                        
----------------------------------------------------------------------------
16 MSC        MSC        2003   6,724     10    29,000    September  29,000 
   METHONI                              years               2021            
----------------------------------------------------------------------------
17 SEALAND    A.P.       2000   6,648     11    30,375   March 2018  26,627 
   NEW YORK   Moller-                   years     (3)                       
              Maersk                                                        
----------------------------------------------------------------------------
18 MAERSK     A.P.       2000   6,648     11    38,179    May 2018   27,929 
   KOBE       Moller-                   years     (4)                       
              Maersk                                                        
----------------------------------------------------------------------------
19 SEALAND    A.P.       2000   6,648     11    30,375    June 2018  26,864 
   WASHINGTON Moller-                   years     (5)                       
              Maersk                                                        
----------------------------------------------------------------------------
20 SEALAND    A.P.       2000   6,648     11    25,375   August 2018 25,951 
   MICHIGAN   Moller-                   years     (6)                       
              Maersk                                                        
----------------------------------------------------------------------------
21 SEALAND    A.P.       2000   6,648     11    30,375  October 2018 27,602 
   ILLINOIS   Moller-                   years     (7)                       
              Maersk                                                        
----------------------------------------------------------------------------
22 MAERSK     A.P.       2003   6,644     11    38,865    November   30,346 
   KOLKATA    Moller-                   years     (8)       2019            
              Maersk                                                        
----------------------------------------------------------------------------
23 MAERSK     A.P.       2003   6,644     11    38,461    February   30,993 
   KINGSTON   Moller-                   years     (9)       2020            
              Maersk                                                        
----------------------------------------------------------------------------
24 MAERSK     A.P.       2003   6,644     11    38,418   April 2020  31,115 
   KALAMATA   Moller-                   years    (10)                       
              Maersk                                                        
----------------------------------------------------------------------------
25 VENETIKO   PIL        2003   5,928    1.0    14,500   March 2014  14,500 
   (iii)                                 year                               
----------------------------------------------------------------------------
26 ENSENADA   Hapag      2001   5,576    2.0    19,000    May 2015   19,000 
   EXPRESS(*) Lloyd                     years                               
----------------------------------------------------------------------------
27 MSC        MSC        2003   5,050    5.3    28,000    November   28,000 
   ROMANOS                              years               2016            
----------------------------------------------------------------------------
28 ZIM NEW    ZIM        2002   4,992     13    23,150    September  23,150 
   YORK                                 years    (11)       2015            
----------------------------------------------------------------------------
29 ZIM        ZIM        2002   4,992     13    23,150    September  23,150 
   SHANGHAI                             years    (11)       2015            
----------------------------------------------------------------------------
30 ZIM        ZIM        2004   4
,992     10    22,150    September  24,463 
   PIRAEUS                              years    (12)       2015            
   (iv)                                                                     
----------------------------------------------------------------------------
31 OAKLAND    Hapag      2000   4,890  8 years  30,500    September  30,500 
   EXPRESS    Lloyd                                         2016            
----------------------------------------------------------------------------
32 HALIFAX    Hapag      2000   4,890  8 years  30,500  October 2016 30,500 
   EXPRESS    Lloyd                                                         
----------------------------------------------------------------------------
33 SINGAPORE  Hapag      2000   4,890  8 years  30,500    July 2016  30,500 
   EXPRESS    Lloyd                                                         
----------------------------------------------------------------------------
34 MSC        MSC        1988   4,828    7.8    20,000   August 2017 20,000 
   MANDRAKI                             years                               
----------------------------------------------------------------------------
35 MSC        MSC        1988   4,828    8.2    20,000    September  20,000 
   MYKONOS                              years               2017            
----------------------------------------------------------------------------
36 MSC ULSAN  MSC        2002   4,132    5.3    16,500   March 2017  16,500 
                                        years                               
----------------------------------------------------------------------------
37 MSC KYOTO  MSC        1981   3,876    9.5    13,500    September  13,500 
                                        years    (13)       2018            
----------------------------------------------------------------------------
38 KORONI     Evergreen  1998   3,842  2 years  11,500   April 2014  11,500 
----------------------------------------------------------------------------
39 KYPARISSIA Evergreen  1998   3,842  2 years  11,500    May 2014   11,500 
----------------------------------------------------------------------------
40 KARMEN     Sea        1991   3,351    1.7     6,750    November    6,750 
              Consortium                years               2013            
----------------------------------------------------------------------------
41 MARINA     Evergreen  1992   3,351    1.8     7,000    February    7,000 
                                        years               2014            
----------------------------------------------------------------------------
42 KONSTANTIN Evergreen  1992   3,351    1.0     7,550  October 2013  7,550 
   A                                     year                               
----------------------------------------------------------------------------
43 AKRITAS    Hapag      1987   3,152  4 years  12,500   August 2014 12,500 
              Lloyd                                                         
----------------------------------------------------------------------------
44 MSC        MSC        1986   2,633    4.8    10,000    July 2015  10,000 
   CHALLENGER                           years                               
----------------------------------------------------------------------------
45 MESSINI    Evergreen  1997   2,458    1.5     8,100    February    8,100 
                                        years               2014            
----------------------------------------------------------------------------
46 MSC        MSC        1992   2,024  6 years  11,500    June 2014  11,500 
   REUNION(v)                                                               
----------------------------------------------------------------------------
47 MSC        MSC        1991   2,023    6.8    11,500    July 2014  11,500 
   NAMIBIA                              years                               
   II(v)                                                                    
----------------------------------------------------------------------------
48 MSC SIERRA MSC        1991   2,023    5.7    11,500    June 2014  11,500 
   II(v)                                years                               
----------------------------------------------------------------------------
49 MSC        MSC        1991   2,020  3 years  11,500  January 2014 11,500 
   PYLOS(v)                                                                 
----------------------------------------------------------------------------
50 X-PRESS    Sea        1998   1,645    2.0     7,650    June 2015   7,965 
   PADMA(*)   Consortium                years    (14)                       
----------------------------------------------------------------------------
51 PROSPER    COSCO      1996   1,504    1.0     7,350   March 2014   7,350 
                                         year                               
----------------------------------------------------------------------------
52 ZAGORA     MSC        1995   1,162    3.7     5,700   April 2015   5,700 
                                        years                               
----------------------------------------------------------------------------
53 PETALIDI   CMA CGM    1994   1,162    1.0     6,300    June 2014   6,300 
   (*)                                  years                               
----------------------------------------------------------------------------
54 STADT      CMA CGM    2001   1.078    1.7     6,400    July 2014   6,400 
   LUEBECK                              years    (15)                       
----------------------------------------------------------------------------

 
Newbuilds 


 
                                                                            
----------------------------------------------------------------------------
                                                     Expected      Capacity 
   Vessel Name Shipyard               Charterer      Delivery     (TEU)(16) 
                                                    (based on               
                                                 latest shipyard            
                                                    schedule)               
----------------------------------------------------------------------------
1  Hull S4024  Sungdong Shipbuilding  Evergreen   November 2013     8,827   
----------------------------------------------------------------------------
2  H1068A      Jiangnan Changxing     MSC         December 2013     9,403   
----------------------------------------------------------------------------
3  H1069A      Jiangnan Changxing     MSC          January 2014     9,403   
----------------------------------------------------------------------------
4  H1070A      Jiangnan Changxing     MSC           March 2014      9,403   
----------------------------------------------------------------------------
5  NCP0113(*)  Hanjin Subic Bay                    4th Quarter    9,000(17) 
                                                       2015                 
----------------------------------------------------------------------------
6  NCP0114(*)  Hanjin Subic Bay                    4th Quarter    9,000(17) 
                                                       2015                 
----------------------------------------------------------------------------
                                                                            
                                                                            
(1)  Charter terms and expiration dates are based on the earliest date      
     charters could expire. Amounts set out for current daily charter rate  
     are the amounts contained in the charter contracts.                    
(2)  This average rate is calculated based on contracted charter rates for  
     the d
ays remaining between October 23, 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) We have agreed to defer payment of 30% of the daily charter rate under 
     our charter agreements until December 31, 2013, which the charterer is 
     required to pay to us no later than July 2015. The charterer has 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) This charter rate changes on May 9, 2014 to $15,000 per day until the  
     earliest redelivery date. We have agreed to defer payment of 17.5% of  
     the daily charter rate under our charter agreements until December 31, 
     2013, which the charterer is required to pay to us no later than July  
     2015. 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 during the period July 2009 to December 2012.       
(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) This charter rate changes on July 27, 2014 to $8,225 per day until the 
     earliest redelivery date.                                              
(15) The charterer has a unilateral option to extend the charter of the     
     vessel for a period of six months at a rate of $8,500 per day.         
(16) Based on updated vessel specifications.                                
(17) Subject to upgrade.                                                    
                                                                            
                                                                            
(i) Assumes exercise of Owners unilateral options to extend the charter of  
    these vessels for two one year periods.                                 
(ii)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.                                
(iiiThe 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.          
(iv)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.                                                                    
(v) 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.            
(*) Denotes vessels acquired pursuant to the Framework Agreement with York. 
    The Company holds a 49% equity interest in each of the vessel-owning    
    entities.                                                               
                                                                            
                                                                            
                                                                            
                               COSTAMARE INC.                               
                     Consolidated Statements of Income                      
                                                                            
                             Nine-months ended        Three-months ended    
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
(Expressed in thousands                                                     
 of U.S. dollars, except                                                    
 share and per share                                                        
 amounts)                    2012         2013         2012         2013    
                         -----------  -----------  -----------  ----------- 
                                             (Unaudited)                    
                                                                            
REVENUES:                                                                   
Voyage revenue           $   290,962  $   301,700  $    94,886  $   110,134 
                                                                            
EXPENSES:                                                                   
Voyage expenses               (3,990)      (2,520)      (1,707)        (643)
Voyage expenses -                                                           
 related parties              (2,161)      (2,283)        (709)        (834)
Vessels' operating                                                          
 expenses                    (84,700)     (85,904)     (28,335)     (29,552)
General and                                                                 
 administrative expenses      (3,086)      (3,283)        (987)      (1,040)
Management fees -                                                           
 related parties             (11,418)     (12,303)      (3,845)      (4,313)
Amortization of dry-                                                        
 docking and special                                                        
 survey costs                 (6,017)      (6,135)      (2,081)      (2,106)
Depreciation                 (60,182)     (65,158)     (20,301)     (23,669)
Gain/ (Loss) on                                                             
 sale/disposals of                                                          
 vessels                      (4,296)         518       (5,599)      (5,942)
Foreign exchange gains                                                      
 (losses)                        167          118          (25)          32 
                         -----------  -----------  -----------  ----------- 
Operating income         $   115,279  $   124,750  $    31,297  $    42,067 
                         -----------  -----------  -----------  ----------- 
                                                                            
OTHER INCOME (EXPENSES):                                                    
Interest income          $     1,173  $       448  $       457  $        39 
Interest and finance                                                        
 costs                       (57,840)     (56,923)     (19,603)     (22,815)
Equity gain on                                                              
 investments                       -          295            -          295 
Other                            (93)         844            8           (3)
Gain/ (Loss) on                                                             
 derivative instruments         (321)       6,821          358        1,361 
                         -----------  -----------  -----------  ----------- 
Total other income                                                          
 (expenses)              $   (57,081) $   (48,515) $   (18,780) $   (21,123)
                         -----------  -----------  -----------  ----------- 
Net Income               $    58,198  $    76,235  $    12,517  $    20,944 
                         ===========  ===========  ===========  =========== 
Distributed earnings                                                        
 allocated to Preferred                                                     
 Stock                             -         (585)           -         (585)
                         -----------  -----------  -----------  ----------- 
Net Income available to                                                     
 common stockholders     $    58,198  $    75,650  $    12,517  $    20,359 
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
Earnings per common                                                         
 share, basic and                                                           
 diluted                 $      0.89  $      1.01  $      0.18  $      0.27 
                         ===========  ===========  ===========  =========== 
Weighted average number                                                     
 of shares, basic and                                                       
 diluted                  65,582,847   74,800,000   67,800,000   74,800,000 
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
                                                                            
                               COSTAMARE INC.                               
                         Consolidated Balance Sheets                        
                                                                            
                                                   As of          As of     
                                                December 31,  September 30, 
                                               -------------  ------------- 
   (Expressed in thousands of U.S. dollars)         2012           2013     
                                               -------------  ------------- 
                                                 (Audited)     (Unaudited)  
ASSETS                                                                      
CURRENT ASSETS:                                                             
Cash and cash equivalents                      $     267,321  $     120,371 
Restricted cash                                        5,330          6,165 
Accounts receivable                                    2,237         11,840 
Inventories                                            9,398         13,318 
Due from related parties                               2,616          2,431 
Fair value of derivatives                                165              - 
Insurance claims receivable                            1,454          1,651 
Accrued charter revenue                                5,100          5,028 
Prepayments and other                                  1,862          3,155 
Vessels held for sale                                  4,441              - 
                                               -------------  ------------- 
Total current assets                           $     299,924  $     163,959 
                                               -------------  ------------- 
FIXED ASSETS, NET:                                                          
Advances for vessels acquisitions              $     339,552  $     231,134 
Vessels, net                                       1,582,345      2,113,826 
                                               -------------  ------------- 
Total fixed assets, net                        $   1,921,897  $   2,344,960 
                                               -------------  ------------- 
NON-CURRENT ASSETS:                                                         
Investment in affiliates                       $           -  $      23,470 
Deferred charges, net                                 34,099         31,457 
Accounts receivable, non current                           -          6,735 
Restricted cash                                       41,992         48,533 
Accrued charter revenue                               13,422          9,555 
                                               -------------  ------------- 
Total assets                                   $   2,311,334  $   2,628,669 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
Current portion of long-term debt              $     162,169  $     201,532 
Accounts payable                                       5,882          7,675 
Accrued liabilities                                    9,292         14,326 
Unearned revenue                                       5,595          7,128 
Fair value of derivatives                             55,701         52,895 
Other current liabilities                             10,772          2,207 
                                               -------------  ------------- 
Total current liabilities                      $     249,411  $     285,763 
                                               -------------  ------------- 
NON-CURRENT LIABILITIES                                                     
Long-term debt, net of current portion         $   1,399,720  $   1,617,751 
Fair value of derivatives, net of current                                   
 portion                                             125,110         61,808 
Unearned revenue, net of current portion              16,641         23,424 
                                               -------------  ------------- 
Total non-current liabilities                  $   1,541,471  $   1,702,983 
      
                                         -------------  ------------- 
COMMITMENTS AND CONTINGENCIES                                               
STOCKHOLDERS' EQUITY:                                                       
Common stock                                   $           8  $           8 
Additional paid-in capital                           714,100        762,142 
Accumulated deficit                                  (40,814)       (25,752)
Accumulated other comprehensive loss                (152,842)       (96,475)
                                               -------------  ------------- 
Total stockholders' equity                     $     520,452  $     639,923 
                                               -------------  ------------- 
Total liabilities and stockholders' equity     $   2,311,334  $   2,628,669 
                                               =============  ============= 

  
Contacts: 
Company Contact:
Gregory Zikos 
Chief Financial Officer 
Konstantinos Tsakalidis 
Business Development
Costamare Inc., Athens, Greece
Tel: (+30) 210-949-0050
Email: ir@costamare.com 
Investor Relations Advisor/ Media Contact: 
Gus Okwu
Allison & Partners, New York
Telephone: (+1) 646-428-0638
Email: costamare@allisonpr.com 
 
 
Press spacebar to pause and continue. Press esc to stop.