Box Ships Inc. Reports Third Quarter And Nine Months Ended September 30, 2013 Results And Declares Quarterly Dividend Of $0.06

Box Ships Inc. Reports Third Quarter And Nine Months Ended September 30, 2013
      Results And Declares Quarterly Dividend Of $0.06 Per Common Share

- Adjusted time charter revenues of $19.7 million up 3% year-over-year in the
third quarter of 2013

- EBITDA of $10.7 million up 6% year-over-year in the third quarter of 2013

- Net Income of $4.8 million up 33% year-over-year in the third quarter of
2013

PR Newswire

ATHENS, Greece, Nov. 7, 2013

ATHENS, Greece, Nov. 7, 2013 /PRNewswire/ -- Box Ships Inc. (NYSE: TEU) (the
"Company"), a global shipping company specializing in the seaborne
transportation of containers, announced today its results for the third
quarter and nine months ended September 30, 2013.

                      Three Months Ended September Nine Months Ended September
                      30,                          30,
Financial Highlights
                      2012           2013          2012          2013
(Expressed in United
States Dollars)
Time charter revenues $17,738,239    $18,258,298   $49,262,388   $54,055,720
Amortization of
above/below market    1,304,665      1,423,481     2,321,611     4,035,194
time charters
Time charter          $19,042,904    $19,681,779   $51,583,999   $58,090,914
revenues, adjusted^1
EBITDA^2              $10,076,468    $10,710,774   $27,427,074   $29,930,936
Adjusted EBITDA^2     $11,933,063    $12,909,770   $30,858,954   $36,256,926
Net Income            $3,654,227     $4,842,645    $10,302,601   $12,291,503
Adjusted Net Income^2 $5,510,822     $7,041,641    $13,734,481   $18,617,493
Earnings per common   $0.07          $0.10         $0.44         $0.37
share (EPS), basic
Earnings per common   $0.07          $0.10         $0.44         $0.36
share (EPS), diluted
Adjusted Earnings per $0.25          $0.27         $0.74         $0.73
common share, basic^2
Adjusted Earnings per
common share,         $0.23          $0.26         $0.72         $0.65
diluted^2

   Time charter revenues, adjusted, is not a recognized measurement under
   generally accepted accounting principles in the United States of America
   ("U.S. GAAP" or "GAAP"). We believe that the presentation of Time charter
   revenues, adjusted is useful to investors because it presents the charter
^1 revenues recognized in the relevant period based on the contracted charter
   rates, excluding the amortization of above/below market time charters
   attached to vessels acquired. Please refer to the definition and
   reconciliation of this measurement to the most directly comparable
   financial measure calculated and presented in accordance with U.S. GAAP at
   the back of this release.
   EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per
   common share ("Adjusted EPS") are not recognized measurements under GAAP.
^2 Please refer to the definitions and reconciliation of these measurements to
   the most directly comparable financial measures calculated and presented in
   accordance with U.S. GAAP at the back of this release.



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

"The third quarter was our tenth consecutive profitable quarter as a public
company, and our revenues, EBITDA and net income were all higher than a year
ago. In addition, the Company has taken steps to reduce its debt burden and
increase its financial flexibility by retiring all of its unsecured debt
before its maturity in early next year.However, the Board of Directors had to
make a prudent but difficult decision to reduce the dividend to $0.06 per
share this quarter to preserve our liquidity, as the containership market has
not shown any signs of a rebound and asset values remain at historically low
levels.We believe this reduction is necessary as we have secured for 2014
under our existing charter contracts only 48% of our fleet capacity, and the
continued weakness in the containership market has resulted in time charter
rates remaining well below the rates our vessels currently earn. The Board of
Directors will evaluate market conditions at regular intervals to consider a
potential increase of the dividend to prior levels, and we remain committed to
our policy of paying out our excess free cash flow in the form of dividends
despite the very challenging market conditions we are facing."

Results of Operations

Three months ended September 30, 2013 compared to three months ended September
30, 2012

During the third quarter of 2013, we operated an average of 9 vessels. Our Net
Income and Adjusted Net Income during the third quarter of 2013 were $4.8
million and $7.0 million, respectively, resulting in basic earnings per share
of $0.10 and basic adjusted earnings per share of $0.27. EBITDA and Adjusted
EBITDA for the third quarter of 2013 were $10.7 million and $12.9 million,
respectively.

During the third quarter of 2012, we operated an average of 8.96 vessels. Our
Net Income and Adjusted Net Income during the third quarter of 2012 were $3.7
million and $5.5 million, respectively, resulting in basic earnings per share
of $0.07 and basic adjusted earnings per share of $0.25. EBITDA and Adjusted
EBITDA for the third quarter of 2012 were $10.1 million and $11.9 million,
respectively.

Net revenues

Net revenues represent charter hire earned, net of commissions. During the
third quarter of 2013 and 2012, our vessels operated a total of 828 and 703
days, respectively, from a total of 828 and 824 calendar days, respectively.
Currently, all vessels in our fleet are employed under fixed rate time
charters, having an average weighted remaining charter duration of 13 months
(weighted by aggregate contracted charter hire). The Company reported net
revenues for the third quarter of 2013 of $17.9 million, which increased by 3%
compared to $17.4 million in the third quarter of 2012, mainly due to the idle
days of Box Trader and Box Voyager in the third quarter of 2012. Our net
revenues are also net of the amortization of above/below market time charters,
which decreased our revenues and net income for the third quarter of 2013 and
2012 by $1.4 million and $1.3 million, respectively, or $0.06 and $0.07 per
common share, respectively. Our average time charter equivalent rate, or TCE
rate, for the third quarter of 2013 was $20,894 per vessel per day, which was
11% below our TCE rate of $23,364 per vessel per day during the third quarter
of 2012, due to the lower rates achieved on re-chartering the Box Voyager,
which was partially offset by the higher voyage expenses incurred during the
third quarter of 2012. Our adjusted TCE rate was $22,613 per vessel per day in
the third quarter of 2013, 10% lower than our adjusted TCE of $25,220 for the
third quarter of 2012, for the same reasons outlined above. TCE rate is not a
recognized measurement under GAAP. Please see the table at the back of this
release for a reconciliation of TCE rates to time charter revenues, the most
directly comparable financial measure calculated and presented in accordance
with U.S. GAAP.

Voyage expenses

Voyage expenses for the third quarter of 2013 and 2012 amounted to $0.6
million and $1.0 million, respectively, and mainly relate to war risk
insurance costs and other crew costs reimbursable by the charterers. Voyage
expenses for the third quarter of 2012 include approximately $0.3 million
relating to bunkers consumed by Box Trader and Box Voyager during the periods
the vessels were unemployed.

Vessels operating expenses

Vessels operating expenses comprise crew wages and related costs, insurance
and vessel registry costs, repairs and maintenance expenses (excluding
dry-docking expenses), the cost of spares and consumable stores, regulatory
fees, non-cash amortization of other intangible assets and other miscellaneous
expenses. The amortization of other intangible assets for each of the third
quarters of 2013 and 2012 amounted to $0.3 million. During the third quarter
of 2013, vessels operating expenses including the amortization of other
intangible assets amounted to $4.3 million, or $4.0 million on an adjusted
basis to exclude the amortization of other intangible assets, compared to $4.5
million, or $4.2 million on an adjusted basis, during the third quarter of
2012. On average, our vessels operating expenses for the third quarter of 2013
were $5,197 per vessel per day, or $4,876 per vessel per day on an adjusted
basis, compared to $5,486 per vessel per day, or $5,159 per vessel per day on
an adjusted basis, in the third quarter of 2012, an improvement of
approximately 5% period over period on a cash basis after adjusting for
non-cash items.

Management fees charged by a related party

Management fees charged by Allseas Marine S.A (our "Manager" or "Allseas") for
each of the third quarters of 2013 and 2012 were $0.7 million, or $847
(€643.77) per vessel per day and $790 (€634.88) per vessel per day, for the
third quarter of 2013 and 2012, respectively. Management fees charged by a
related party represent fees for management and technical services in
accordance with our management agreements and are adjusted annually in
accordance with the official Eurozone inflation rate. This fee is charged on a
daily basis per vessel and is affected by the number of vessels in our fleet,
the number of calendar days during the period, the official Eurozone inflation
rate and the U.S. Dollar/Euro exchange rate at the beginning of each month.

Depreciation

Depreciation for our fleet for the third quarter of 2013 and 2012 was $3.8
million and $4.1 million, respectively. Effective January 1, 2013, the Company
revised its scrap rate estimate prospectively from $150 to $300 per
lightweight ton. The change in accounting estimate does not have a
retrospective effect in the financial statements previously reported. The
effect of this change was to decrease depreciation expense and to increase net
income by approximately $0.3 million, or $0.01 per basic common share for the
three months ended September 30, 2013.

General and administrative expenses

General and administrative ("G&A") expenses for the third quarter of 2013 and
2012 were $1.5 million and $1.2 million, or $1,849 and $1,409 per vessel per
day, respectively. The increase in G&A expenses period over period was due
primarily to increased financial reporting fees and executive services fees
paid to our Manager and increased share-based compensation expense. During the
third quarter of 2013 and 2012, expenses related to the provision of our
executive services by our Manager amounted to $0.55 million and $0.45 million,
respectively, and share-based compensation amounted to $0.5 million and $0.3
million, respectively.

Interest and finance costs

Interest and finance costs amounted to $2.1 million and $2.3 million for the
third quarters of 2013 and 2012, respectively. This decrease in interest and
finance costs is due to the decrease in our average borrowings outstanding
period over period.

UNAUDITED CONSOLIDATED CONDENSED CASH FLOW INFORMATION
(Expressed in United States Dollars)
                                               Nine Months Ended September 30,
                                               2012              2013
Net cash from Operating Activities           $ 22,025,461     $  30,351,827
Net cash used in Investing Activities          (62,419,281)      -
Net cash from / (used in) Financing            41,783,684        (25,155,839)
Activities
Net increase in cash and cash equivalents    $ 1,389,864      $  5,195,988



Net cash from Operating Activities

Net cash from Operating Activities for the nine months ended September 30,
2013 was $30.4 million. Our vessels generated positive cash flows from
revenues, net of commissions, of $57.0 million, while we paid $26.6 million
for expenses, of which $5.3 million relates to the payment of interest on our
bank loans and our related party loan with Paragon Shipping Inc. ("Paragon
Shipping").

Net cash from Operating Activities for the nine months ended September 30,
2012 was $22.0 million. Our vessels generated positive cash flows from
revenues, net of commissions, of $49.9 million, while we paid $27.9 million
for expenses, of which $5.2 million relates to the payment of interest on our
bank loans and our related party loan with Paragon Shipping.

Net cash used in Investing Activities

For the nine months ended September 30, 2013, there was no cash used in
investing activities. Net cash used in Investing Activities for the nine
months ended September 30, 2012, was $62.4 million, relating to the
acquisition of OOCL Hong Kong and OOCL China, including attached intangibles.

Net cash from / (used in) Financing Activities

Net cash used in Financing Activities for the nine months ended September 30,
2013, was $25.2 million. On March 18, 2013, we completed the public offering
and issuance of 4,000,000 of our common shares, resulting in net proceeds of
$19.9 million, net of underwriting discounts, commissions and other offering
costs of $1.1 million in the aggregate. On July 29, 2013, we completed the
public offering and issuance of 558,333 shares of our 9.00% Series C
Cumulative Redeemable Perpetual Preferred Shares (the "Series C Preferred
Shares"), resulting in net proceeds of $12.8 million, net of underwriting
discounts, commissions and other offering costs of $0.6 million in the
aggregate. $19.7 million out of the net proceeds from the Series C Preferred
Shares offering and our cash reserves were used to redeem and retire all of
our outstanding Series B-1 Preferred Shares. During the nine months ended
September 30, 2013, we repaid $25.0 million of our debt, paid financing costs
of $0.2 million and paid dividends to our preferred and common shareholders of
$1.5 million and $11.5 million, in the aggregate, respectively.

Net cash from Financing Activities for the nine months ended September 30,
2012, was $41.8 million. Included in the $41.8 million is the proceeds from
the issuance of 1,333,333 units, each unit consisting of one 9.75% Series B
Cumulative Redeemable Perpetual Preferred Share (the "Series B Preferred
Shares") and one warrant to purchase one of our common shares, which amounted
to $38.4 million in the aggregate, net of related costs of $0.1 million,
together with the drawdown of $24.7 million under a secured loan agreement,
net of financing fees of $0.3 million, which were used to finance the
acquisition of OOCL Hong Kong and OOCL China. On July 18, 2012, we completed
the public offering and issuance of 4,285,715 of our common shares, resulting
in net proceeds of $28.2 million, net of underwriting discounts, commissions
and other offering costs of $1.8 million in the aggregate. We used a portion
of the net proceeds of the public offering to redeem 692,641 of the Series B
Preferred Shares at a price equal to the liquidation preference of $30.00 per
share, or $20.8 million in the aggregate. During the nine months ended
September 30, 2012, we repaid $13.3 million of our debt and paid dividends to
our preferred and common shareholders of $0.3 million and $15.1 million,
respectively.

Liquidity:

As of September 30, 2013, our cash and restricted cash (current and
non-current) amounted to $22.3 million in the aggregate, of which $10.0
million is considered restricted for minimum liquidity purposes under our loan
agreements. As of September 30, 2013, we had total outstanding indebtedness of
$191.2 million, of which $28.7 million is scheduled to be repaid in the
forthcoming 12-month period, of which $10.0 million has already been repaid as
of November 7, 2013, which includes the $6.0 million prepayment to Paragon
Shipping, as discussed below. Furthermore, as of September 30, 2013, we were
in compliance with all of the covenants contained in our loan agreements, as
amended. In addition, we have no borrowing capacity under our existing loan
facilities and no capital commitments. We anticipate that our current
financial resources, together with cash generated from operations will be
sufficient to fund the operations of our current fleet, including our working
capital requirements, for the next 12 months.

Recent Developments:

Follow-On Preferred Stock Offering:

On October 9, 2013, we completed a follow-on public offering of 340,000 of our
Series C Preferred Shares at a public offering price of $24.00 per share,
which resulted in net proceeds of $7.5 million, net of underwriting discounts
and commissions of $0.5 million and estimated offering expenses of $0.2
million.

Dividends on the 340,000 newly issued Series C Preferred Shares accrue and are
cumulative from the dividend payment date of the previously issued Series C
Preferred Shares immediately preceding their date of issuance and will be
payable quarterly in arrears on January1,April1,July1 and October1 of
each year, commencing January1, 2014, when, as and if declared by our board
of directors. Dividends are payable at a rate equal to 9.00%per annum of the
liquidation preference of $25.00 per share.

Loan with Paragon Shipping:

On October 18, 2013, we repaid in full, out of the net proceeds of the
follow-on preferred stock offering, the outstanding balance plus accrued
interest of $6.1 million to Paragon Shipping under our unsecured loan
agreement.

Dividends:

On November 7, 2013, our Board of Directors declared a dividend of $0.06 per
common share, with respect to the third quarter of 2013, payable on or about
November 28, 2013, to common shareholders of record as of the close of
business on November 21, 2013. This is our tenth consecutive quarterly
dividend to common shareholders since we became a public company in April
2011.

On October 1, 2013, we paid our first dividend of $0.2 million with respect to
our Series C Preferred Shares, for the period from the original issuance of
the Series C Preferred Shares on July 29, 2013 through September 30, 2013. As
of September 30, 2013, 558,333 Series C Preferred Shares were outstanding.

The declaration and payment of any dividend on our common shares will be
determined at the sole discretion of our Board of Directors. We cannot assure
you that we will pay dividends in the amounts stated above or at all, and our
ability to pay dividends will be subject to the rights of holders of our
Series C Preferred Shares, which accrue dividends cumulatively at a rate of
9.00% per annum per $25.00 stated liquidation preference per Series C
Preferred Share and are payable on January 1, April 1, July 1 and October 1 of
each year, the restrictions in our loan agreements, the provisions of Marshall
Islands law and other factors to be considered by our Board of Directors.

Chartering Update and Strategy:

In September 2013, Box Trader extended its time charter with Hapag Lloyd for
an additional period of 5 to 7 months, commencing on October 22, 2013, at a
gross daily charter rate of $8,000. The charterer has the option to extend the
term of the charter by an additional period of 6 months, plus or minus 30
days, at a gross daily charter rate of $15,500.

Pursuant to our chartering strategy, we focus on containerships with carrying
capacities ranging from 1,700 TEU to 7,000 TEU employed on short- to
medium-term time charters of one to five years with staggered maturities,
which provide us with the benefit of stable cash flows from a diversified
portfolio of charterers, while preserving the flexibility to capitalize on
potentially rising rates when the current time charters expire. Based on the
earliest redelivery dates, the Company has secured under such contracts 94%
and 48% of its fleet capacity for the remainder of 2013 and 2014,
respectively. For future updates on the employment of our vessels, please
visit the employment section of our website at
www.box-ships.com/fleet-employment.php. The information contained on the
Company's website does not constitute part of this press release. 

Fleet List:

The following table provides additional information about our fleet as of
November 7, 2013.

Vessel      Year  TEU    Charterer   Daily Gross Charter   Charter       Notes
            Built                    Rate (7)              Expiration
Box Voyager 2010  3,426  CNC         $6,850                March 2014    1
Box Trader  2010  3,426  Hapag Lloyd $8,000                April 2014    2
CMA CGM     2007  5,095  CMA CGM     $23,000               April 2014    3
Kingfish
CMA CGM     2007  5,095  CMA CGM     $23,000               May 2014      3
Marlin
Maersk      2006  4,546  Maersk      $28,000               December 2013 4
Diadema
Maule       2010  6,589  CSAV        $38,000               May 2016      5
                         Valparaiso
MSC Emma    2004  5,060  MSC         $28,500               August 2014   6
OOCL Hong   1995  5,344  OOCL        $26,800               June 2015     8
Kong
OOCL China  1996  5,344  OOCL        $26,800               July 2015     8
Total             43,925

Notes:
1)     The employment is for a period of six to 14 months and commenced in
       January 2013.
       The employment is for a period of five to seven months and commenced in
2)     October 2013. The charterer has the option to extend the term of the
       charter by an additional period of six months, plus or minus 30 days,
       commencing in April 2014, at a gross daily charter rate of $15,500.
3)     The charterer has the option to increase or decrease the term of the
       charter by 45 days.
4)     Indicates date the vessel is expected to be redelivered.
       The charterer has the option to increase or decrease the term of the
       charter by 30 days. The charterer also has the option to purchase the
5)     vessel upon expiration of the charter, provided that the option is
       exercised at least six months prior to the expiration of the term of
       the charter, for a purchase price of $57.0 million, less a 0.5%
       purchase commission payable to parties unaffiliated to us.
       The charterer has the option to increase or decrease the term of the
6)     charter by 30 days. The charterer also has the option to extend the
       term of the charter by an additional one-year term at the same gross
       daily charter rate.
       Daily gross charter rates do not reflect commissions payable by us to
       third party chartering brokers and our Manager, totaling 4.75% for Box
7)     Voyager, 1.25% for each of CMA CGM Kingfish,  CMA CGM Marlin, OOCL Hong
       Kong and OOCL China,  and 2.5% for each of the other vessels in our
       fleet, including, in each case, 1.25% to Allseas.
8)     The charterer has the option to increase or decrease the term of the
       charter by 30 days.



Conference Call and Webcast details:

The Company's management will host a conference call to discuss its third
quarter and nine months ended September 30, 2013 results on November 8, 2013
at 9:00 am ET.

Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: +1-877-300-8521 (USA) or +1-412-317-6026
(international).

A replay of the conference call will be available for seven days and can be
accessed by dialing +1-877-870-5176 (domestic) and +1-858-384-5517
(international) and using passcode 10036516.

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

About Box Ships Inc.:

Box Ships Inc. is an Athens, Greece-based international shipping company
specializing in the transportation of containers. The Company's current fleet
consists of nine containerships with a total carrying capacity of 43,925 TEU
and a TEU weighted average age of 8.8 years. The Company's common shares and
Series C Preferred Shares trade on the New York Stock Exchange under the
symbols "TEU" and "TEUPRC", respectively.

Cautionary Statement Regarding Forward-Looking Statement

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

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

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

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

Contacts:

Box Ships Inc.
Robert Perri, CFA
Chief Financial Officer
Tel. +30 (210) 8914600
E-mail: ir@box-ships.com

Investor Relations / Media
Allen & Caron Inc.
Michael Mason (Investors)
Tel. +1 (212) 691-8087
E-mail: michaelm@allencaron.com

Len Hall (Media)
Tel. +1 (949) 474-4300
E-mail: len@allencaron.com

- Tables Follow –



                                          Three Months Ended Nine Months Ended
SUMMARY FLEET INFORMATION                 September 30,      September 30,
                                          2012      2013     2012     2013
FLEET DATA
Average number of vessels ^(1)            8.96      9.00     7.68     9.00
Calendar days for fleet ^(2)              824       828      2,104    2,457
Less:
Scheduled off-hire                        -         -        44       19
Unscheduled off-hire                      121       -        127      13
Operating days for fleet ^(3)             703       828      1,933    2,425
Fleet utilization ^(4)                    85.3%     100.0%   91.9%    98.7%
AVERAGE DAILY RESULTS

(Expressed in United States Dollars)
Time charter equivalent ^(5)              $23,364   $20,894  $23,964  $20,989
Vessel operating expenses ^(6)            $5,486    $5,197   $5,429   $5,430
Management fees charged by a related      $790      $847     $803     $839
party ^(7)
General and administrative expenses ^(8)  $1,409    $1,849   $1,787   $1,848
Total vessel operating expenses ^(9)      $7,685    $7,893   $8,019   $8,117

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



Time Charter
Equivalent            Three Months Ended September Nine Months Ended September
Reconciliation        30,                          30,

(Expressed in United  2012           2013          2012          2013
States Dollars)
Time Charter Revenues $17,738,239    $18,258,298   $49,262,388   $54,055,720
Commissions           (359,460)      (376,520)     (1,061,756)   (1,110,117)
Voyage Expenses       (953,739)      (581,318)     (1,877,293)   (2,047,897)
Total Revenue, net of $16,425,040    $17,300,460   $46,323,339   $50,897,706
voyage expenses
Plus: Amortization of
above/below market    1,304,665      1,423,481     2,321,611     4,035,194
time charters
Total Revenue, net of
voyage expenses,      $17,729,705    $18,723,941   $48,644,950   $54,932,900
adjusted
Total operating days  703            828           1,933         2,425
Time Charter          $23,364        $20,894       $23,964       $20,989
Equivalent
Time Charter
Equivalent,           $25,220        $22,613       $25,166       $22,653
adjusted^(10)

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



Reconciliation of U.S. GAAP Financial Information to Non-GAAP measures

(Expressed in United States Dollars, except for share data)
Net Income / Adjusted Three Months Ended September Nine Months Ended September
Net Income^(1)        30,                          30,
                      2012           2013          2012          2013
Net Income            $3,654,227     $4,842,645    $10,302,601   $12,291,503
Plus: Amortization of 1,574,160      1,689,736     2,591,106     4,825,277
intangibles
Plus: Share-based     282,435        509,260       840,774       1,500,713
compensation
Adjusted Net Income   $5,510,822     $7,041,641    $13,734,481   $18,617,493
EBITDA / Adjusted
EBITDA^(1)
Net income            $3,654,227     $4,842,645    $10,302,601   $12,291,503
Plus: Net Interest    2,275,390      2,053,054     6,261,852     6,318,611
expense
Plus: Depreciation    4,146,851      3,815,075     10,862,621    11,320,822
EBITDA                $10,076,468    $10,710,774   $27,427,074   $29,930,936
Plus: Amortization of 1,574,160      1,689,736     2,591,106     4,825,277
intangibles
Plus: Share-based     282,435        509,260       840,774       1,500,713
compensation
Adjusted EBITDA       $11,933,063    $12,909,770   $30,858,954   $36,256,926



Earnings per Common   Three Months Ended September Nine Months Ended September
Share                 30,                          30,
                      2012           2013          2012          2013
Net income            $3,654,227     $4,842,645    $10,302,601   $12,291,503
Less: Dividends to
Series B-1 Preferred  (564,177)      (140,078)     (770,010)     (1,077,090)
Shares
Less: Dividends to
Series C Preferred    -              (219,844)     -             (219,844)
Shares
Less: Redemption of
Series B-1 Preferred  (1,762,511)    (2,062,788)   (1,762,511)   (2,062,788)
Shares
Less: Net income
attributable to       (19,424)       (51,416)      (135,062)     (202,417)
non-vested share
awards
Net income available
to common             $1,308,115     $2,368,519    $7,635,018    $8,729,364
shareholders
Weighted average
number of common      19,529,788     24,430,380    17,194,775    23,302,586
shares, basic
Earnings per common   $0.07          $0.10         $0.44         $0.37
share, basic
Net income            $3,654,227     $4,842,645    $10,302,601   $12,291,503
Less: Dividends to
Series B-1 Preferred  (564,177)      (140,078)     (770,010)     (1,077,090)
Shares
Less: Dividends to
Series C Preferred    -              (219,844)     -             (219,844)
Shares
Less: Redemption of
Series B-1 Preferred  (1,762,511)    (2,062,788)   (1,762,511)   (2,062,788)
Shares
Less: Net income
attributable to       (19,424)       (51,416)      (135,062)     (202,417)
non-vested share
awards
Plus: Dividends to
Series B-1 Preferred  -              140,078       385,216       1,077,090
Shares, if converted
to common shares
Net income available
to common             $1,308,115     $2,508,597    $8,020,234    $9,806,454
shareholders
Weighted average
number of common      19,529,788     26,039,211    18,185,962    27,491,597
shares, diluted
Earnings per common   $0.07          $0.10         $0.44         $0.36
share, diluted



Adjusted Earnings per Common Three Months Ended    Nine Months Ended September
Share^(1)                    September 30,         30,
                             2012       2013       2012          2013
Adjusted Net income          $5,510,822 $7,041,641 $13,734,481   $18,617,493
Less: Dividends to Series    (564,177)  (140,078)  (770,010)     (1,077,090)
B-1 Preferred Shares
Less: Dividends to Series C  -          (219,844)  -             (219,844)
Preferred Shares
Less: Adjusted Net income
attributable to non-vested   (72,379)   (141,965)  (225,352)     (392,528)
share awards
Adjusted Net income
available to common          $4,874,266 $6,539,754 $12,739,119   $16,928,031
shareholders
Weighted average number of   19,529,788 24,430,380 17,194,775    23,302,586
common shares, basic
Adjusted Earnings per common $0.25      $0.27      $0.74         $0.73
share, basic
Adjusted Net income          $5,510,822 $7,041,641 $13,734,481   $18,617,493
Less: Dividends to Series    (564,177)  (140,078)  (770,010)     (1,077,090)
B-1 Preferred Shares
Less: Dividends to Series C  -          (219,844)  -             (219,844)
Preferred Shares
Less: Adjusted Net income
attributable to non-vested   (72,379)   (141,965)  (225,352)     (392,528)
share awards
Plus: Dividends to Series
B-1 Preferred Shares, if     385,216    140,078    385,216       1,077,090
converted to common shares
Adjusted Net income
available to common          $5,259,482 $6,679,832 $13,124,335   $18,005,121
shareholders
Weighted average number of   22,481,802 26,039,211 18,185,962    27,491,597
common shares, diluted
Adjusted Earnings per common $0.23      $0.26      $0.72         $0.65
share, diluted

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



BOX SHIPS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in United States Dollars)
                     Three Months Ended
                                               Nine Months Ended September 30,
                     September 30,
                     2012         2013         2012              2013
REVENUES:
Time charter         17,738,239   18,258,298   49,262,388        54,055,720
revenues ^(1)
Commissions          (359,460)    (376,520)    (1,061,756)       (1,110,117)
Net Revenues         17,378,779   17,881,778   48,200,632        52,945,603
EXPENSES:
Voyage expenses      953,739      581,318      1,877,293         2,047,897
Vessels operating    4,520,710    4,303,387    11,423,326        13,340,457
expenses ^(2)
Dry-docking expenses -            -            2,006,176         1,010,230
Management fees
charged by a related 650,987      701,331      1,689,573         2,061,843
party
Depreciation         4,146,851    3,815,075    10,862,621        11,320,822
General and
administrative       1,161,012    1,530,820    3,759,719         4,541,414
expenses ^(3)
Operating income     5,945,480    6,949,847    16,581,924        18,622,940
OTHER INCOME
(EXPENSES):
Interest and finance (2,278,609)  (2,053,795)  (6,276,559)       (6,322,313)
costs
Interest income      3,219        741          14,707            3,702
Foreign currency     (15,863)     (54,148)     (17,471)          (12,826)
loss, net
Total other          (2,291,253)  (2,107,202)  (6,279,323)       (6,331,437)
expenses, net
NET INCOME           3,654,227    4,842,645    10,302,601        12,291,503
Other Comprehensive
(Loss) / Income
Unrealized (loss) /
gain on cash flow    (541,359)    (212,945)    (758,166)         561,901
hedges
Total Other
Comprehensive (Loss) (541,359)    (212,945)    (758,166)         561,901
/ Income
COMPREHENSIVE INCOME 3,112,868    4,629,700    9,544,435         12,853,404
Earnings per common  $0.07        $0.10        $0.44             $0.37
share, basic
Earnings per common  $0.07        $0.10        $0.44             $0.36
share, diluted



Footnotes:
    includes amortization of below and above market acquired time charters of
(1) $1,304,665 and $1,423,481 for the three months ended September 30, 2012
    and 2013, respectively, and $2,321,611 and $4,035,194 for the nine months
    ended September 30, 2012 and 2013, respectively
    includes amortization of other intangible assets of $269,495 and $266,255
(2) for the three months ended September 30, 2012 and 2013, respectively, and
    $269,495 and $790,083 for the nine months ended September 30, 2012 and
    2013, respectively
    includes share-based compensation of $282,435 and $509,260 for the three
(3) months ended September 30, 2012 and 2013, respectively, and $840,774 and
    $1,500,713 for the nine months ended September 30, 2012 and 2013,
    respectively



BOX SHIPS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
                                         December 31, 2012  September 30, 2013
ASSETS
Cash and restricted cash (current and    17,141,452         22,337,440
non-current)
Other current assets                     6,696,714          8,049,521
Vessels and other fixed assets, net and  421,225,703        404,107,236
other non-current assets
Total Assets                             445,063,869        434,494,197
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt        36,700,000         28,700,000
Other current liabilities                5,959,883          7,242,303
Long-term debt, net of current portion   179,550,000        162,525,000
Other non-current liabilities            2,074,703          797,938
Total stockholders' equity               220,779,283        235,228,956
Total Liabilities and Stockholders'      445,063,869        434,494,197
Equity

SOURCE Box Ships Inc.

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