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Exhibit 99.2
Financial Report
Results of Operations
Three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020
During the three-month periods ended December 31, 2021 and 2020, we had an average of 108.1 and 60.3 vessels, respectively, in our fleet.
In the three-month period ended December 31, 2021, we sold the container vessels ZIM Shanghai and ZIM New York, with an aggregate TEU capacity of 9,984. Furthermore, during the three-month period ended December 31, 2021, we accepted delivery of 13 secondhand dry bulk vessels (Equity, Cetus (ex. Charm), Curacao, Rose, Bermondi, Titan I, Orion, Greneta, Merchia, Damon, Pythias, Egyptian Mike and Phoenix) with an aggregate DWT of 811,567.
In the three-month period ended December 31, 2020, we accepted delivery of the secondhand container vessel Neokastro with a TEU capacity of 4,178 and we sold the container vessel Singapore Express with a TEU capacity of 4,890.
In the three-month periods ended December 31, 2021 and 2020, our fleet ownership days totaled 9,942 and 5,552 days, respectively. Ownership days are one of the primary drivers 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.
Consolidated Financial Results and vessels’ operational data
Three-month period ended December 31, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2020 | 2021 | Change | Change | ||||||||||||
| Voyage revenue | $ | 119.1 | $ | 283.9 | $ | 164.8 | 138.4 | % | ||||||||
| Voyage expenses | (1.0 | ) | (5.8 | ) | 4.8 | n.m. | ||||||||||
| Voyage expenses – related parties | (1.8 | ) | (3.7 | ) | 1.9 | 105.6 | % | |||||||||
| Vessels’ operating expenses | (32.0 | ) | (60.6 | ) | 28.6 | 89.4 | % | |||||||||
| General and administrative expenses | (2.1 | ) | (3.4 | ) | 1.3 | 61.9 | % | |||||||||
| Management fees – related parties | (5.6 | ) | (9.7 | ) | 4.1 | 73.2 | % | |||||||||
| General and administrative expenses - non-cash component | (1.2 | ) | (1.9 | ) | 0.7 | 58.3 | % | |||||||||
| Amortization of dry-docking and special survey costs | (2.3 | ) | (2.9 | ) | 0.6 | 26.1 | % | |||||||||
| Depreciation | (27.1 | ) | (40.9 | ) | 13.8 | 50.9 | % | |||||||||
| Gain on sale / disposal of vessels | 0.5 | 27.8 | 27.3 | n.m. | ||||||||||||
| Loss on vessels held for sale | (7.7 | ) | - | (7.7 | ) | n.m. | ||||||||||
| Foreign exchange losses | (0.1 | ) | (0.1 | ) | - | - | ||||||||||
| Interest income | 0.4 | - | (0.4 | ) | n.m. | |||||||||||
| Interest and finance costs | (17.2 | ) | (25.3 | ) | 8.1 | 47.1 | % | |||||||||
| Gain on sale of equity securities | - | 2.0 | 2.0 | n.m. | ||||||||||||
| Income from equity method investments | 4.0 | 0.8 | (3.2 | ) | (80.0 | %) | ||||||||||
| Other | 0.7 | 1.0 | 0.3 | 42.9 | % | |||||||||||
| Gain / (loss) on derivative instruments | 0.5 | - | (0.5 | ) | n.m. | |||||||||||
| Net Income | $ | 27.1 | $ | 161.2 | ||||||||||||
Three-month period ended December 31, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2020 | 2021 | Change | Change | ||||||||||||
| Voyage revenue | $ | 119.1 | $ | 283.9 | $ | 164.8 | 138.4 | % | ||||||||
| Accrued charter revenue | 5.3 | (14.5 | ) | (19.8 | ) | n.m. | ||||||||||
| Amortization of time charter assumed | - | - | ||||||||||||||
| Voyage revenue adjusted on a cash basis (1) | $ | 124.4 | $ | 269.4 | $ | 145.0 | 116.6 | % | ||||||||
| 1 |
| Vessels’ operational data | Three-month period ended December 31, | Percentage | ||||||||||||||
| 2020 | 2021 | Change | Change | |||||||||||||
| Average number of vessels | 60.3 | 108.1 | 47.8 | 79.3 | % | |||||||||||
| Ownership days | 5,552 | 9,942 | 4,390 | 79.1 | % | |||||||||||
| Number of vessels under dry-docking | 2 | 2 | - | |||||||||||||
Segmental Financial Summary
| Three-month period ended December 31, 2021 | ||||||||||||||||
| Container vessels | Dry bulk vessels | Other | Total | |||||||||||||
| Voyage revenue | $ | 203.2 | $ | 80.7 | $ | - | $ | 283.9 | ||||||||
| Voyage expenses | (1.7 | ) | (4.1 | ) | - | (5.8 | ) | |||||||||
| Voyage expenses – related parties | (2.7 | ) | (1.0 | ) | - | (3.7 | ) | |||||||||
| Vessels’ operating expenses | (41.2 | ) | (19.4 | ) | - | (60.6 | ) | |||||||||
| General and administrative expenses | (2.3 | ) | (1.1 | ) | - | (3.4 | ) | |||||||||
| Management fees – related parties | (6.6 | ) | (3.1 | ) | - | (9.7 | ) | |||||||||
| General and administrative expenses - non-cash component | (1.3 | ) | (0.6 | ) | - | (1.9 | ) | |||||||||
| Amortization of dry-docking and special survey costs | (2.8 | ) | (0.1 | ) | - | (2.9 | ) | |||||||||
| Depreciation | (33.4 | ) | (7.5 | ) | - | (40.9 | ) | |||||||||
| Gain on sale / disposal of vessels | 27.8 | - | - | 27.8 | ||||||||||||
| Foreign exchange losses | (0.1 | ) | - | - | (0.1 | ) | ||||||||||
| Interest and finance costs | (22.5 | ) | (2.8 | ) | - | (25.3 | ) | |||||||||
| Gain on sale of equity securities | - | - | 2.0 | 2.0 | ||||||||||||
| Income from equity method investments | - | - | 0.8 | 0.8 | ||||||||||||
| Other | 0.8 | 0.2 | - | 1.0 | ||||||||||||
| Net Income | $ | 117.2 | $ | 41.2 | $ | 2.8 | $ | 161.2 | ||||||||
(1) Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Consolidated Financial Results and vessels’ operational data” above for the reconciliation of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 138.4%, or $164.8 million, to $283.9 million during the three-month period ended December 31, 2021, from $119.1 million during the three-month period ended December 31, 2020. The increase is mainly attributable to (i) revenue earned by one container vessel acquired during the three-month period ended December 31, 2020, as well as to the 16 container vessels and 41 dry bulk vessels acquired during the year ended December 31, 2021 and (ii) increased charter rates in certain of our container vessels, partly off-set by revenue not earned by five container vessels sold during the year ended December 31, 2021.
Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 116.6%, or $145.0 million, to $269.4 million during the three-month period ended December 31, 2021, from $124.4 million during the three-month period ended December 31, 2020. Accrued charter revenue for the three-month periods ended December 31, 2021 and 2020 was a negative amount of $14.5 million and a positive amount of $5.3 million, respectively.
Voyage Expenses
Voyage expenses were $5.8 million and $1.0 million for the three-month periods ended December 31, 2021 and 2020, respectively. Voyage expenses mainly include (i) off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $3.7 million and $1.8 million for the three-month periods ended December 31, 2021 and 2020, respectively. Voyage expenses – related parties represent (i) fees of 1.25%, in the aggregate, on voyage revenues charged by a related manager and a service provider and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.4 million and $0.3 million, in the aggregate, for the three-month periods ended December 31, 2021 and 2020, respectively.
| 2 |
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $60.6 million and $32.0 million during the three-month periods ended December 31, 2021 and 2020, respectively. Daily vessels’ operating expenses were $6,103 and $5,774 for the three-month periods ended December 31, 2021 and 2020, respectively. The increase in the daily operating expenses during the quarter ended December 31, 2021 is mainly attributable to increased one-time predelivery expenses for the acquisition of dry bulk vessels and increased crew costs related to COVID-19 pandemic measures. Daily operating expenses are calculated as vessels’ operating expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $3.4 million and $2.1 million during the three-month periods ended December 31, 2021 and 2020, respectively, and both include $0.63 million paid to a related manager.
Management Fees – related parties
Management fees paid to our related party managers were $9.7 million and $5.6 million during the three-month periods ended December 31, 2021 and 2020, respectively.
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended December 31, 2021 amounted to $1.9 million, representing the value of the shares issued to a related party manager on December 30, 2021. General and administrative expenses - non-cash component for the three-month period ended December 31, 2020 amounted to $1.2 million, representing the value of the shares issued to a related party manager on December 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special survey costs was $2.9 million and $2.3 million during the three-month periods ended December 31, 2021 and 2020, respectively. During the three-month period ended December 31, 2021, one vessel underwent and completed her dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey. During the three-month period ended December 31, 2020, two vessels underwent and completed their dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods ended December 31, 2021 and 2020 was $40.9 million and $27.1 million, respectively.
Gain on Sale / Disposal of Vessels
During the three-month period ended December 31, 2021, we recorded a gain of $27.8 million from the sale of the container vessels ZIM Shanghai and ZIM New York, which were classified as vessels held for sale at September 30, 2021 (initially classified as vessel held for sale as of June 30, 2021). During the three-month period ended December 31, 2020, we recorded a gain of $0.5 million from the sale of the vessel Singapore Express, which was classified as vessel held for sale at June 30, 2020 and September 30, 2020.
Loss on Vessels Held for Sale
During the three-month period ended December 31, 2021, the container vessels Messini, Sealand Illinois, Sealand Michigan and York were classified as vessels held for sale. No loss on vessels held for sale was recorded during the fourth quarter of 2021, since each vessel’s estimated fair value less costs to sell exceeded each vessel’s carrying value. During the three-month period ended December 31, 2020, the container vessel Halifax Express was classified as vessel held for sale and we recorded a loss on vessel held for sale of $7.7 million, which resulted from its estimated fair value measurement less costs to sell, during the period.
Interest Income
Interest income amounted to nil and $0.4 million for the three-month periods ended December 31, 2021 and 2020, respectively.
| 3 |
Interest and Finance Costs
Interest and finance costs were $25.3 million and $17.2 million during the three-month periods ended December 31, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020, partly off-set by decreased financing cost during the three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020.
Gain on Sale of Equity Securities
Gain on sale of equity securities of $2.0 million for the three-month period ended December 31, 2021, represents the difference between the aggregate sale price of 1,221,800 ordinary shares of ZIM as compared to their carrying value as at September 30, 2021. ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares on January 27, 2021.
Income from Equity Method Investments
During the three-month period ended December 31, 2021, we recorded an income from equity method investments of $0.8 million representing our share of the income in jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated (the “Framework Deed”), with York Capital Management Advisors LLC (“York”). As of December 31, 2021, six companies are jointly owned with York (of which, four companies currently own container vessels). During the three-month period ended December 31, 2020, we recorded an income from equity method investments of $4.0 million relating to investments under the Framework Deed. As of December 31, 2020, 13 companies were jointly owned with York (of which, ten companies owned container vessels). The decreased income from equity method investments in the fourth quarter of 2021 compared to the fourth quarter of 2020 is mainly attributable to the decreased number of container vessels jointly owned with York during the fourth quarter of 2021 compared to the fourth quarter of 2020; partly off-set by the increased profitability of certain jointly owned vessels during the fourth quarter of 2021 compared to the fourth quarter of 2020.
Gain / (loss) on Derivative Instruments
As of December 31, 2021, ten interest rate derivative instruments and two cross currency rate swaps were outstanding and their fair value, in aggregate, amounted to a liability of $10.9 million. The change in the fair value of our interest rate derivative instruments and cross currency swaps that qualified for hedge accounting is recorded in “Other Comprehensive Income” (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For the three-month period ended December 31, 2021, a gain of $5.2 million has been included in OCI and a loss of $0.1 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 December 31, 2021.
Cash Flows
Three-month periods ended December 31, 2021 and 2020
| Condensed cash flows | Three-month period ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2020 | 2021 | ||||||
| Net Cash Provided by Operating Activities | $ | 68.4 | $ | 165.4 | ||||
| Net Cash Used in Investing Activities | $ | (14.7 | ) | $ | (110.2 | ) | ||
| Net Cash Used in Financing Activities | $ | (49.2 | ) | $ | - | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended December 31, 2021, increased by $97.0 million to $165.4 million, from $68.4 million for the three-month period ended December 31, 2020. The increase is mainly attributable to increased cash from operations of $145.0 million, partly off-set by the 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 $2.3 million, by the increased payments for interest (including swap payments) of $5.9 million during the three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020 and by the increased dry-docking and special survey costs of $0.1 million during the three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020.
| 4 |
Net Cash Used in Investing Activities
Net cash used in investing activities was $110.2 million in the three-month period ended December 31, 2021, which mainly consisted of (i) payments for the acquisition of six secondhand dry bulk vessels, (ii) settlement payments for the delivery of seven secondhand dry bulk vessels, (iii) settlement payment for one secondhand container vessel which was delivered in January 2022, (iv) advance payment for the acquisition of one secondhand dry bulk vessel, which was delivered in January 2022, and (v) payments for upgrades for certain of our container and dry bulk vessels; partly off-set by proceeds we received from (i) the sale of two container vessels and (ii) the sale of 1,221,800 ordinary shares of ZIM that we owned.
Net cash used in investing activities was $14.7 million in the three-month period ended December 31, 2020, which mainly consisted of payments for upgrades for certain of our container vessels and payments for the acquisition of one secondhand container vessel; partly off-set by proceeds we received from the sale of one container vessel and by return of capital we received from three entities jointly-owned with York pursuant to the Framework Deed.
Net Cash Used in Financing Activities
Net cash used in financing activities was nil in the three-month period ended December 31, 2021, which mainly consisted of (a) $20.0 million net proceeds relating to our debt financing agreements (including proceeds of $159.1 million we received from our debt financing agreements), (b) $10.8 million we paid for dividends to holders of our common stock for the third quarter of 2021 and (c) $0.9 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”), $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”), $2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (“Series D Preferred Stock”) and $2.5 million we paid for dividends to holders of our 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock (“Series E Preferred Stock”) for the period from July 15, 2021 to October 14, 2021.
Net cash used in financing activities was $49.2 million in the three-month period ended December 31, 2020, which mainly consisted of (a) $32.0 million net payments relating to our debt financing agreements, (b) $9.3 million we paid for dividends to holders of our common stock for the third quarter of 2020 and (c) $0.9 million we paid for dividends to holders of our Series B Preferred Stock, $2.1 million we paid for dividends to holders of our Series C Preferred Stock, $2.2 million we paid for dividends to holders of our Series D Preferred Stock and $2.5 million we paid for dividends to holders of our Series E Preferred Stock for the period from July 15, 2020 to October 14, 2020.
Year ended December 31, 2021 compared to the year ended December 31, 2020
During the years ended December 31, 2021 and 2020, we had an average of 83.6 and 60.0 vessels, respectively, in our fleet.
In the year ended December 31, 2021, (i) we accepted delivery of the newbuild container vessels YM Target and YM Tiptop with an aggregate TEU capacity of 25,380, the secondhand container vessels Aries, Argus, Glen Canyon, Androusa, Norfolk, Porto Cheli, Porto Kagio, Porto Germeno, and Gialova with an aggregate TEU capacity of 49,909; and we sold the container vessels Halifax Express, Prosper, Venetiko, ZIM Shanghai and ZIM New York with an aggregate TEU capacity of 22,306 and (ii) we acquired (a) the 75% equity interest of York Capital Management in each of the 11,010 TEU container vessels Cape Kortia and Cape Sounio and (b) the 51% equity interest of York in each of the 11,010 TEU container vessels Cape Tainaro, Cape Artemisio and Cape Akritas and as a result we obtained 100% of the equity interest in each of these five vessels.
Furthermore, in the year ended December 31, 2021, we acquired all of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by entities affiliated with our Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos. We agreed to acquire these companies from Mr. Konstantakopoulos at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities. Mr. Konstantakopoulos did not receive a profit as a result of the acquisition. The sixteen dry bulk vessels (Pegasus, Builder, Adventure, Eracle, Peace, Sauvan, Pride, Alliance, Manzanillo, Acuity, Seabird, Aeolian, Comity, Athena, Farmer and Greneta) that were part of the acquisition had an aggregate DWT of 932,329 and were delivered to us during the year ended December 31, 2021. In addition, in the year ended December 31, 2021, we accepted delivery of another twenty-seven secondhand dry bulk vessels (Bernis, Verity, Dawn, Discovery, Clara, Serena, Merida, Progress, Miner, Parity, Uruguay, Resource, Konstantinos, Taibo, Thunder, Equity, Cetus (ex. Charm), Curacao, Rose, Bermondi, Titan I, Orion, Merchia, Damon, Pythias, Egyptian Mike and Phoenix) with an aggregate DWT of 1,388,422.
| 5 |
In the year ended December 31, 2020, we accepted delivery of the newbuild container vessels YM Triumph, YM Truth and YM Totality with an aggregate TEU capacity of 38,070 and the secondhand container vessels Virgo, Scorpius and Neokastro with an aggregate TEU capacity of 11,008; and we sold the container vessels Neapolis, Kawasaki, Kokura, Zagora and Singapore Express with an aggregate TEU capacity of 22,503.
In the year ended December 31, 2021 and 2020, our fleet ownership days totaled 30,525 and 21,965 days, respectively. Ownership days are one of the primary drivers 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.
Consolidated Financial Results and vessels’ operational data (1)
Year ended December, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2020 | 2021 | Change | Change | ||||||||||||
| Voyage revenue | $ | 460.3 | $ | 793.6 | $ | 333.3 | 72.4 | % | ||||||||
| Voyage expenses | (7.4 | ) | (13.3 | ) | 5.9 | 79.7 | % | |||||||||
| Voyage expenses – related parties | (6.5 | ) | (11.1 | ) | 4.6 | 70.8 | % | |||||||||
| Vessels’ operating expenses | (117.1 | ) | (180.0 | ) | 62.9 | 53.7 | % | |||||||||
| General and administrative expenses | (7.4 | ) | (9.4 | ) | 2.0 | 27.0 | % | |||||||||
| Management fees – related parties | (21.6 | ) | (29.6 | ) | 8.0 | 37.0 | % | |||||||||
| General and administrative expenses - non-cash component | (3.7 | ) | (7.4 | ) | 3.7 | 100.0 | % | |||||||||
| Amortization of dry-docking and special survey costs | (9.0 | ) | (10.4 | ) | 1.4 | 15.6 | % | |||||||||
| Depreciation | (108.7 | ) | (137.0 | ) | 28.3 | 26.0 | % | |||||||||
| Gain / (loss) on sale / disposal of vessels, net | (79.1 | ) | 45.9 | 125.0 | n.m. | |||||||||||
| Loss on vessels held for sale | (7.7 | ) | - | (7.7 | ) | n.m. | ||||||||||
| Vessels’ impairment loss | (31.6 | ) | - | (31.6 | ) | n.m. | ||||||||||
| Foreign exchange gains / (losses) | (0.3 | ) | 0.1 | 0.4 | n.m. | |||||||||||
| Interest income | 1.9 | 1.6 | (0.3 | ) | (15.8 | %) | ||||||||||
| Interest and finance costs | (68.7 | ) | (86.1 | ) | 17.4 | 25.3 | % | |||||||||
| Swaps’ breakage cost | - | - | - | n.m. | ||||||||||||
| Gain on sale of equity securities | - | 60.2 | 60.2 | n.m. | ||||||||||||
| Income from equity method investments | 16.2 | 12.8 | (3.4 | ) | (21.0 | %) | ||||||||||
| Dividend income from investment in equity securities | - | 1.8 | 1.8 | n.m. | ||||||||||||
| Other | 1.2 | 4.6 | 3.4 | n.m. | ||||||||||||
| Loss on derivative instruments | (1.9 | ) | (1.2 | ) | (0.7 | ) | (36.8 | %) | ||||||||
| Net Income | $ | 8.9 | $ | 435.1 | ||||||||||||
Year ended December 31, | Percentage | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2020 | 2021 | Change | Change | ||||||||||||
| Voyage revenue | $ | 460.3 | $ | 793.6 | $ | 333.3 | 72.4 | % | ||||||||
| Accrued charter revenue | 21.3 | (11.3 | ) | (32.6 | ) | (153.1 | %) | |||||||||
| Amortization of time charter assumed | 0.2 | (0.4 | ) | (0.6 | ) | n.m. | ||||||||||
| Voyage revenue adjusted on a cash basis (2) | $ | 481.8 | $ | 781.9 | $ | 300.1 | 62.3 | % | ||||||||
| 6 |
| Vessels’ operational data | Year ended December 31, | Percentage | ||||||||||||||
| 2020 | 2021 | Change | Change | |||||||||||||
| Average number of vessels | 60.0 | 83.6 | 23.6 | 39.3 | % | |||||||||||
| Ownership days | 21,965 | 30,525 | 8,560 | 39.0 | % | |||||||||||
| Number of vessels under dry-docking | 11 | 15 | 4 | |||||||||||||
Segmental Financial Summary (1)
| Year ended December 31, 2021 | ||||||||||||||||
| Container vessels | Dry bulk vessels | Other | Total | |||||||||||||
| Voyage revenue | $ | 678.3 | $ | 115.3 | $ | - | $ | 793.6 | ||||||||
| Voyage expenses | (7.1 | ) | (6.2 | ) | - | (13.3 | ) | |||||||||
| Voyage expenses – related parties | (9.6 | ) | (1.5 | ) | - | (11.1 | ) | |||||||||
| Vessels’ operating expenses | (151.5 | ) | (28.5 | ) | - | (180.0 | ) | |||||||||
| General and administrative expenses | (8.2 | ) | (1.2 | ) | - | (9.4 | ) | |||||||||
| Management fees – related parties | (24.9 | ) | (4.7 | ) | - | (29.6 | ) | |||||||||
| General and administrative expenses – non-cash component | (6.3 | ) | (1.1 | ) | - | (7.4 | ) | |||||||||
| Amortization of dry-docking and special survey costs | (10.3 | ) | (0.1 | ) | - | (10.4 | ) | |||||||||
| Depreciation | (125.8 | ) | (11.2 | ) | - | (137.0 | ) | |||||||||
| Gain on sale / disposal of vessels, net | 45.9 | - | - | 45.9 | ||||||||||||
| Foreign exchange gains | 0.1 | - | - | 0.1 | ||||||||||||
| Interest income | 1.6 | - | - | 1.6 | ||||||||||||
| Interest and finance costs | (81.9 | ) | (4.2 | ) | - | (86.1 | ) | |||||||||
| Gain on sale of equity securities | - | - | 60.2 | 60.2 | ||||||||||||
| Income from equity method investments | - | - | 12.8 | 12.8 | ||||||||||||
| Dividend income from investment in equity securities | - | - | 1.8 | 1.8 | ||||||||||||
| Other | 4.3 | 0.3 | - | 4.6 | ||||||||||||
| Loss on derivative instruments | (1.1 | ) | (0.1 | ) | - | (1.2 | ) | |||||||||
| Net Income | $ | 303.5 | $ | 56.8 | $ | 74.8 | $ | 435.1 | ||||||||
(1) The results of dry bulk vessels are included from June 14, 2021. Prior to that, our results were attributable to container vessels only.
(2) Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Consolidated Financial Results and vessels’ operational data” above for the reconciliation of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 72.4%, or $333.3 million, to $793.6 million during the year ended December 31, 2021, from $460.3 million during the year ended December 31, 2020. The increase is mainly attributable to (i) revenue earned by six container vessels acquired during the year ended December 31, 2020 as well as by revenue earned by 16 container vessels and 41 dry bulk vessels acquired during the year ended December 31, 2021, and (ii) increased charter rates in certain of our container vessels during the year ended December 31, 2021 compared to the year ended December 31, 2020, partly off-set by revenue not earned by five container vessels sold during the year ended December 31, 2020 and five container vessels sold during the year ended December 31, 2021.
Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”), increased by 62.3%, or $300.1 million, to $781.9 million during the year ended December 31, 2021, from $481.8 million during the year ended December 31, 2020. Accrued charter revenue for the years ended December 31, 2021 and 2020 was a negative amount of $11.3 million and a positive amount of $21.3 million, respectively.
Voyage Expenses
Voyage expenses were $13.3 million and $7.4 million for the years ended December 31, 2021 and 2020, respectively. Voyage expenses mainly include (i) off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $11.1 million and $6.5 million for the years ended December 31, 2021 and 2020, respectively. Voyage expenses – related parties represent (i) fees of 1.25% in the aggregate on voyage revenues charged by a related manager and a service provider and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $1.3 million and $0.8 million, in the aggregate, for the years ended December 31, 2021 and 2020, respectively.
| 7 |
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $180.0 million and $117.1 million during the years ended December 31, 2021 and 2020, respectively. Daily vessels’ operating expenses were $5,896 and $5,329 for the years ended December 31, 2021 and 2020, respectively. The increase in the daily operating expenses during the year ended December 31, 2021 is mainly attributable to increased one-time predelivery expenses for the acquisition of dry bulk vessels and increased crew costs related to COVID-19 pandemic measures. Daily operating expenses are calculated as vessels’ operating expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $9.4 million and $7.4 million during the years ended December 31, 2021 and 2020, respectively, and both include $2.5 million paid to a related manager.
Management Fees – related parties
Management fees paid to our related party managers were $29.6 million and $21.6 million during the years ended December 31, 2021 and 2020, respectively.
General and Administrative Expenses – non-cash component
General and administrative expenses – non-cash component for the year ended December 31, 2021 amounted to $7.4 million, representing the value of the shares issued to a related party manager on March 31, 2021, June 30, 2021, September 30, 2021 and December 30, 2021. General and administrative expenses – non-cash component for the year ended December 31, 2020 amounted to $3.7 million, representing the value of the shares issued to a related party manager on March 30, 2020, June 30, 2020, September 30, 2020 and December 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special survey costs was $10.4 million and $9.0 million during the year ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, 14 vessels underwent and completed their dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey. During the year ended December 31, 2020, 11 vessels underwent and completed their dry-docking and special survey.
Depreciation
Depreciation expense for the year ended December 31, 2021 and 2020 was $137.0 million and $108.7 million, respectively.
Gain / (loss) on Sale / Disposal of Vessels, net
During the year ended December 31, 2021, we recorded a net gain of $45.9 million from the sale of the container vessels Prosper (asset held for sale at March 31, 2021), Halifax Express (asset held for sale at December 31, 2020), Venetiko (asset held for sale at March 31, 2021 and June 30, 2021), ZIM Shanghai (asset held for sale as at June 30, 2021 and September 30, 2021) and ZIM New York (asset held for sale as at June 30, 2021 and September 30, 2021). During the year ended December 31, 2020, we recorded an aggregate net loss of $79.1 million from the sale of the container vessels Neapolis, Kawasaki, Kokura, Zagora and Singapore Express. Neapolis and Zagora were classified as assets held for sale at December 31, 2019.
Loss on Vessels Held for Sale
During the year ended December 31, 2021, the container vessels Messini, Sealand Illinois, Sealand Michigan and York were classified as vessels held for sale. No loss on vessels held for sale was recorded since each vessel’s estimated fair value less costs to sell exceeded each vessel’s carrying value. During the year ended December 31, 2020, the container vessel Halifax Express was classified as vessel held for sale and we recorded a loss on vessel held for sale of $7.7 million, which resulted from its estimated fair value measurement less costs to sell, during the year.
Vessels’ Impairment Loss
During the year ended December 31, 2021 no impairment loss was recorded. During the year ended December 31, 2020, we recorded an impairment loss in relation to five of our container vessels in the amount of $31.6 million, in the aggregate.
| 8 |
Interest Income
Interest income amounted to $1.6 million and $1.9 million for the years ended December 31, 2021 and 2020, respectively.
Interest and Finance Costs
Interest and finance costs were $86.1 million and $68.7 million during the years ended December 31, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the year ended December 31, 2021 compared to the year ended December 31, 2020, partly off-set by the decreased financing cost during the year ended December 31, 2021 compared to the year ended December 31, 2020.
Swaps’ Breakage Costs
During the year ended December 31, 2020, we terminated two interest rate derivative instruments that qualified for hedge accounting and we paid the counterparties breakage costs in the amount of $0.006 million in the aggregate.
Gain on Sale of Equity Securities / Dividend Income from Investment in Equity Securities
The gain on sale of equity securities of $60.2 million for the year period ended December 31, 2021, represents the difference between the aggregate sale price of 1,221,800 ordinary shares of ZIM as compared to the book value of these shares as of December 31, 2020. ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares on January 27, 2021. Furthermore, in the year ended December 31, 2021, we received a dividend from ZIM in the amount of $1.8 million.
Income from Equity Method Investments
During the year ended December 31, 2021, we recorded an income from equity method investments of $12.8 million representing our share of the income in jointly owned companies pursuant to the Framework Deed, with York. Since late March 2021, we have held 100% of the equity interest in five previously jointly owned companies with York, and since then these five companies are consolidated in our consolidated financial statements. As of December 31, 2021, six companies are jointly owned with York (of which, four companies currently own container vessels). During the year ended December 31, 2020, we recorded an income from equity method investments of $16.2 million relating to investments under the Framework Deed. As of December 31, 2020, 13 companies were jointly owned with York (of which, ten companies owned container vessels). The decreased income from equity method investments in 2021 compared to 2020 is mainly attributable to the decreased number of container vessels jointly owned with York during 2021 compared to 2020; partly off-set by the increased profitability of certain jointly owned with York container vessels during 2021 compared to 2020 and to the gain on sale of one jointly owned with York container vessel which was sold in the third quarter of 2021.
Loss on Derivative Instruments
As of December 31, 2021, ten interest rate derivative instruments and two cross currency rate swaps were outstanding and their fair value, in aggregate, as at that date were a liability of $10.9 million. The change in the fair value of our interest rate derivative instruments and cross currency swaps that qualified for hedge accounting is recorded in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For the year ended December 31, 2021, a gain of $5.7 million has been included in OCI and a loss of $0.4 million has been included in 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 year ended December 31, 2021.
Cash Flows
Years ended December 31, 2021 and 2020
| Condensed cash flows | Years ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2020 | 2021 | ||||||
| Net Cash Provided by Operating Activities | $ | 274.3 | $ | 466.5 | ||||
| Net Cash Used in Investing Activities | $ | (36.4 | ) | $ | (787.5 | ) | ||
| Net Cash Provided by / (Used in) Financing Activities | $ | (241.9 | ) | $ | 482.6 | |||
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Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the year ended December 31, 2021, increased by $192.2 million to $466.5 million, from $274.3 million for year ended December 31, 2020. The increase is mainly attributable to increased cash from operations of $300.2 million, partly off-set by the 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 $1.3 million, by the increased payments for interest (including swap payments) of $11.8 million during the year ended December 31, 2021 compared to the year ended December 31, 2020 and by the increased dry-docking and special survey costs of $3.4 million during the year ended December 31, 2021 compared to the year ended December 31, 2020.
Net Cash Used in Investing Activities
Net cash used in investing activities was $787.5 million in the year ended December 31, 2021, which mainly consisted of (i) net payments for the acquisition of the 75% equity interest in two companies and of the 51% equity interest in three companies, previously jointly owned with York pursuant to the Framework Deed, (ii) payments for the delivery of two newbuild container vessels, (iii) settlement payments for the acquisition of three secondhand container vessels, (iv) payments for the acquisition of six secondhand container vessels and 41 dry bulk vessels, (v) payment for the acquisition of one secondhand container vessel which was delivered in January 2022, (vi) advance payments for the acquisition of one secondhand dry bulk vessel, which was delivered in January 2022 (vii) payments for the acquisition of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by our Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos in accordance with the Share and Purchase agreement dated June 14, 2021 (agreed to acquire the equity interest of these companies at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities) and (viii) payments for upgrades for certain of our container and dry bulk vessels; partly off-set by proceeds we received from (i) the sale of 1,221,800 ordinary shares of ZIM that we owned, (ii) the sale of five container vessels and (iii) return of capital we received from one entity jointly -owned with York pursuant to the Framework Deed.
Net cash used in investing activities was $36.4 million in the year ended December 31, 2020, which mainly consisted of payments for upgrades for certain of our container vessels and payments for the delivery of three newbuild container vessels and three secondhand container vessels; partly off-set by proceeds we received from the sale of five of our container vessels and by return of capital we received from ten entities jointly-owned with York pursuant to the Framework Deed.
Net Cash Provided by / (Used in) Financing Activities
Net cash provided by financing activities was $482.6 million in the year ended December 31, 2021, which mainly consisted of (a) $570.0 million net proceeds relating to our debt financing agreements (including proceeds we received (i) from the issuance of €100.0 million unsecured bond on the Athens Exchange and (ii) from our debt financing agreements of an amount of $1,103.1 million), (b) $40.2 million we paid for dividends to holders of our common stock for the fourth quarter of 2020, the first quarter of 2021, the second quarter of 2021 and the third quarter of 2021 and (c) $3.8 million we paid for dividends to holders of our Series B Preferred Stock, $8.5 million we paid for dividends to holders of our Series C Preferred Stock, $8.7 million we paid for dividends to holders of our Series D Preferred Stock and $10.2 million we paid for dividends to holders of our Series E Preferred Stock for the periods from October 15, 2020 to January 14, 2021, January 15, 2021 to April 14, 2021, April 15, 2021 to July 14, 2021 and July 15, 2021 to October 14, 2021.
Net cash used in financing activities was $241.9 million in the year ended December 31, 2020, which mainly consisted of (a) $165.1 million net payments relating to our debt financing agreements, (b) $34.3 million we paid for dividends to holders of our common stock for the fourth quarter of 2019, the first quarter of 2020, the second quarter of 2020 and the third quarter of 2020 and (c) $3.8 million we paid for dividends to holders of our Series B Preferred Stock, $8.5 million we paid for dividends to holders of our Series C Preferred Stock, $8.7 million we paid for dividends to holders of our 8.75% Series D Preferred Stock and $10.2 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2019 to January 14, 2020, January 15, 2020 to April 14, 2020, April 15, 2020 to July 14, 2020 and July 15, 2020 to October 14, 2020.
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Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of December 31, 2021, we had Cash and cash equivalents of $353.5 million, consisting of cash, cash equivalents and restricted cash. Furthermore, as of December 31, 2021, we had liquidity of $359.0 million (including our share of cash amounting to $5.5 million held in companies co-owned with York), which coupled with the $193.3 million of undrawn funds from our two hunting license facilities (adjusted for the $56.7 million already drawn in 2022), amounts to $552.3 million.
Debt-free vessels
As of March 9, 2022, the following vessels were free of debt.
Unencumbered Vessels
(Refer to fleet list for full details)
| Vessel Name | Year Built |
TEU Capacity |
||||||
| Containerships | ||||||||
| ETOILE | 2005 | 2,556 | ||||||
| MICHIGAN | 2008 | 1,300 | ||||||
| MESSINI | 1997 | 2,458 | ||||||
| MONEMVASIA (*) | 1998 | 2,472 | ||||||
| ARKADIA (*) | 2001 | 1,550 | ||||||
(*) Vessels acquired pursuant to the Framework Deed with York.
Conference Call details:
On Thursday, March 10, 2022 at 8:30 a.m. EST, 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: 1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or +1-412-317-9258 (from outside the US and the UK). Please quote “Costamare”. A replay of the conference call will be available until March 17, 2022. 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: 4701527.
Live webcast:
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com). 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 48 years of history in the international shipping industry and a fleet of 85 containerships, with a total capacity of approximately 670,600 TEU (including eight newbuild vessels currently under construction and six vessels that we have agreed to sell) and 46 dry bulk vessels with a total capacity of approximately 2,493,500 DWT (including one secondhand vessel that we have agreed to acquire). Four of our containerships have been acquired pursuant to the Framework Deed with York by vessel-owning joint venture entities in which we hold a minority equity interest. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
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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”, “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 the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors” and the Company’s Results for the Second Quarter and Six-Months Ended June 30, 2021 on Form 6-K (filed on July 28, 2021 with the SEC) under the caption “Risk Factor Update”.
Company Contacts:
Gregory
Zikos – Chief Financial Officer
Konstantinos Tsakalidis – Business Development
Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com
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Containership Fleet List
The tables below provide additional information, as of March 9, 2022, about our fleet of containerships, including the vessels we have agreed to sell, the vessels under construction, the vessels acquired pursuant to the Framework Deed and those vessels subject to sale and leaseback agreements. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
|
|
Vessel Name | Charterer | Year Built | Capacity (TEU) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) |
| 1 | TRITON(ii) | Evergreen | 2016 | 14,424 | (*) | March 2026 |
| 2 | TITAN(ii) | Evergreen | 2016 | 14,424 | (*) | April 2026 |
| 3 | TALOS(ii) | Evergreen | 2016 | 14,424 | (*) | July 2026 |
| 4 | TAURUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 5 | THESEUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 6 | YM TRIUMPH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 7 | YM TRUTH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 8 | YM TOTALITY(ii) | Yang Ming | 2020 | 12,690 | (*) | July 2030 |
| 9 | YM TARGET(ii) | Yang Ming | 2021 | 12,690 | (*) | November 2030 |
| 10 | YM TIPTOP(ii) | Yang Ming | 2021 | 12,690 | (*) | March 2031 |
| 11 | CAPE AKRITAS | MSC | 2016 | 11,010 | 33,000 | August 2031 |
| 12 | CAPE TAINARO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 13 | CAPE KORTIA | MSC | 2017 | 11,010 | 33,000 | August 2031 |
| 14 | CAPE SOUNIO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 15 | CAPE ARTEMISIO | Hapag Lloyd | 2017 | 11,010 | 36,650 | March 2025 |
| 16 | COSCO GUANGZHOU | COSCO/(*) | 2006 | 9,469 | 30,900/72,700 | April 2025(3) |
| 17 | COSCO NINGBO | COSCO/(*) | 2006 | 9,469 | 30,900/72,700 | April 2025(3) |
| 18 | YANTIAN | COSCO | 2006 | 9,469 | 39,600 | February 2024 |
| 19 | COSCO HELLAS | COSCO | 2006 | 9,469 | 39,600 | February 2024 |
| 20 | BEIJING | COSCO | 2006 | 9,469 | 39,600 | March 2024 |
| 21 | MSC AZOV | MSC | 2014 | 9,403 | 46,300 | December 2026(4) |
| 22 | MSC AMALFI | MSC | 2014 | 9,403 | 46,300 | March 2027(5) |
| 23 | MSC AJACCIO | MSC | 2014 | 9,403 | 46,300 | February 2027(6) |
| 24 | MSC ATHENS(ii) | MSC | 2013 | 8,827 | 45,300 | January 2026(7) |
| 25 | MSC ATHOS(ii) | MSC | 2013 | 8,827 | 45,300 | February 2026(8) |
| 26 | VALOR | Hapag Lloyd | 2013 | 8,827 | 32,400 | April 2025 |
| 27 | VALUE | Hapag Lloyd | 2013 | 8,827 | 32,400 | April 2025 |
| 28 | VALIANT | Hapag Lloyd | 2013 | 8,827 | 32,400 | June 2025 |
| 29 | VALENCE | Hapag Lloyd | 2013 | 8,827 | 32,400 | July 2025 |
| 30 | VANTAGE | Hapag Lloyd | 2013 | 8,827 | 32,400 | September 2025 |
| 31 | NAVARINO | MSC | 2010 | 8,531 | 31,000 | January 2025 |
| 32 | MAERSK KLEVEN | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(9) |
| 33 | MAERSK KOTKA | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(9) |
| 34 | MAERSK KOWLOON | Maersk | 2005 | 7,471 | 18,500 | August 2025(10) |
| 35 | KURE | COSCO/MSC | 1996 | 7,403 | 31,000/41,500 | March 2026(11) |
| 36 | METHONI | Maersk | 2003 | 6,724 | 46,500 | August 2026 |
| 37 | PORTO CHELI | Maersk | 2001 | 6,712 | 30,075 | June 2026 |
| 38 | YORK(iii) | Maersk | 2000 | 6,648 | 21,250 | November 2022(12) |
| 39 | ZIM TAMPA (ex. KOBE) | ZIM | 2000 | 6,648 | 45,000 | July 2025 |
| 40 | SEALAND WASHINGTON(iii) | Maersk | 2000 | 6,648 | 25,000 | March 2023 (13) |
| 41 | SEALAND MICHIGAN(iii) | Maersk | 2000 | 6,648 | 25,000 | October 2022(13) |
| 42 | SEALAND ILLINOIS(iii) | Maersk | 2000 | 6,648 | 25,000 | October 2022 (13) |
| 43 | MAERSK KALAMATA(iii) | Maersk | 2003 | 6,644 | 25,000 | December 2022(13) |
| 44 | MAERSK KOLKATA | Maersk/ZIM | 2003 | 6,644 | 25,000/53,000 | October 2025 (14) |
| 13 |
|
|
Vessel Name | Charterer | Year Built | Capacity (TEU) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) |
| 45 | MAERSK KINGSTON | Maersk/ZIM | 2003 | 6,644 | 25,000/53,000 | October 2025 (14) |
| 46 | ARIES | ONE | 2004 | 6,492 | (*) | December 2022 |
| 47 | ARGUS | ONE | 2004 | 6,492 | (*) | January 2023 |
| 48 | PORTO KAGIO | Maersk | 2002 | 5,908 | 28,822 | June 2026 |
| 49 | GLEN CANYON | ZIM | 2006 | 5,642 | 62,500 | July 2025 |
| 50 | PORTO GERMENO | Maersk | 2002 | 5,570 | 28,822 | June 2026 |
| 51 | LEONIDIO(ii) | Maersk | 2014 | 4,957 | 14,200 | December 2024(15) |
| 52 | KYPARISSIA(ii) | Maersk | 2014 | 4,957 | 14,200 | November 2024(15) |
| 53 | MEGALOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(16) |
| 54 | MARATHOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(16) |
| 55 | OAKLAND | Maersk | 2000 | 4,890 | 24,500 | March 2023 |
| 56 | GIALOVA | ZIM | 2009 | 4,578 | 25,500 | April 2024 |
| 57 | DYROS | Maersk | 2008 | 4,578 | 22,750 | January 2024 |
| 58 | NORFOLK | Maersk | 2009 | 4,259 | 30,000 | May 2023 |
| 59 | VULPECULA | OOCL/ZIM | 2010 | 4,258 | 22,700/43,250 (on average) | February 2028(17) |
| 60 | VOLANS | ZIM | 2010 | 4,258 | 24,250 | April 2024 |
| 61 | VIRGO | Maersk | 2009 | 4,258 | 30,200 | February 2024 |
| 62 | VELA | OOCL/ZIM | 2009 | 4,258 | 22,700/43,250 (on average) | January 2028(18) |
| 63 | ANDROUSA | Maersk | 2010 | 4,256 | 22,750 | May 2023 |
| 64 | NEOKASTRO | CMA CGM | 2011 | 4,178 | 39,000 | March 2027 |
| 65 | ULSAN | Maersk | 2002 | 4,132 | 34,730 | January 2026 |
| 66 | POLAR ARGENTINA(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | October 2024 |
| 67 | POLAR BRASIL(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | January 2025 |
| 68 | LAKONIA | COSCO | 2004 | 2,586 | 26,500 | March 2025(19) |
| 69 | SCORPIUS | Hapag Lloyd | 2007 | 2,572 | 17,750 | January 2023 |
| 70 | ETOILE | (*) | 2005 | 2,556 | (*) | February 2023 |
| 71 | AREOPOLIS | COSCO | 2000 | 2,474 | 26,500 | April 2025(20) |
| 72 | MONEMVASIA(i) | Maersk | 1998 | 2,472 | 9,250 | November 2022(21) |
| 73 | MESSINI(iii) | (*) | 1997 | 2,458 | 18,000 | March 2022 |
| 74 | ARKADIA(i) | Swire Shipping | 2001 | 1,550 | 21,500 | May 2023 |
| 75 | MICHIGAN | MSC | 2008 | 1,300 | 18,700 | September 2023 |
| 76 | TRADER | (*) | 2008 | 1,300 | (*) | October 2024 |
| 77 | LUEBECK | MSC | 2001 | 1,078 | 15,000 | March 2024(22) |
Container Vessels under construction
|
|
Vessel | Vessel Capacity (TEU) | Estimated Delivery(23) | Employment |
| 1 | Newbuilding 1 | 12,690 | Q3 2023 | Long Term Employment upon delivery from shipyard |
| 2 | Newbuilding 2 | 12,690 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 3 | Newbuilding 3 | 12,690 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 4 | Newbuilding 4 | 12,690 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 5 | Newbuilding 5 | 15,000 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 6 | Newbuilding 6 | 15,000 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 7 | Newbuilding 7 | 15,000 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 8 | Newbuilding 8 | 15,000 | Q3 2024 | Long Term Employment upon delivery from shipyard |
| (1) | Daily charter rates are gross, unless stated otherwise. Amounts set out for current daily charter rate are the amounts contained in the charter contracts. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could expire. |
| 14 |
| (3) | Upon redelivery of each vessel from COSCO between April 2022 and July 2022, each vessel will commence a charter for a period of 36 to 39 months at a daily rate of $72,700. Until then the daily charter rate of Cosco Guangzhou and Cosco Ningbo will be $30,900. |
| (4) | This charter rate will be earned by MSC Azov until December 2, 2023. From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. |
| (5) | This charter rate will be earned by MSC Amalfi until March 16, 2024. From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. |
| (6) | This charter rate will be earned by MSC Ajaccio until February 1, 2024. From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. |
| (7) | This charter rate will be earned by MSC Athens until January 29, 2023. From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. |
| (8) | This charter rate will be earned by MSC Athos until February 24, 2023. From the aforementioned date until the expiry of the charter, the daily rate will be $35,300. |
| (9) | The current daily rate of each of Maersk Kleven and Maersk Kotka is a base rate of $17,000, adjusted pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. Upon redelivery of each vessel from Maersk between June 2023 and October 2023, each vessel will commence a new charter with MSC for a period of 36 to 38 months at a fixed daily rate of $41,500. |
| (10) | This charter rate will be earned by Maersk Kowloon from June 12, 2022. Until then the daily charter rate will be $16,000. |
| (11) | Upon redelivery of Kure from COSCO between March 2023 and July 2023, the vessel will commence a new charter with MSC for a period of 36 to 38 months at a daily rate of $41,500. Until then the daily charter rate will be $31,000. |
| (12) | Expiration of charter represents latest redelivery date. |
| (13) | The daily rate for Sealand Washington, Sealand Michigan, Sealand Illinois and Maersk Kalamata is a base rate of $16,000, adjusted pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. Expiration dates of the charters of these vessels represent latest redelivery dates. |
| (14) | The current daily rate for Maersk Kolkata and Maersk Kingston is a base rate of $16,000, adjusted pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. Upon expiry of their current employment (estimated on the latest redelivery date) the vessels will enter into a new charter with ZIM for a period of 36 to 40 months at a daily rate $53,000. |
| (15) | Charterer has the option to extend the current time charter for an additional period of 12 to 24 months at a daily rate of $17,000. |
| (16) | Charterer has the option to extend the current time charter for an additional period of approximately 24 months at a daily rate of $14,500. |
| (17) | The current daily rate for Vulpecula is $22,700. Upon expiry of its current employment (estimated on the earliest redelivery date) the vessel will enter into a new charter with ZIM for a period of 60 to 64 months at a daily rate of $43,250, on average. For this new charter, the daily rate will be $99,000 for the first 12 month period, $91,250 for the second 12 month period, $10,000 for the third 12 month period and $8,000 for the remaining duration of the charter. |
| (18) | The current daily rate for Vela is $22,700. Upon expiry of its current employment (estimated on the earliest redelivery date) the vessel will enter into a new charter with ZIM for a period of 60 to 64 months at a daily rate of $43,250, on average. For this new charter the daily rate will be $99,000 for the first 12 month period, $91,250 for the second 12 month period, $10,000 for the third 12 month period and $8,000 for the remaining duration of the charter. |
| (19) | This charter rate will be earned by Lakonia from April 24, 2022. Until then the daily charter rate will be $17,300. |
| (20) | This charter rate will be earned by Areopolis from May 3, 2022. Until then the daily charter rate will be $17,300. |
| (21) | Expiration of charter represents latest redelivery date. |
| (22) | This charter rate will be earned by Luebeck from March 19, 2022. Until then the daily charter rate will be $7,750. |
| (23) | Based on latest shipyard construction schedule, subject to change. |
| (i) | Denotes vessels acquired pursuant to the Framework Deed. The Company holds an equity interest of 49% in each of the vessel-owning entities. |
| (ii) | Denotes vessels subject to a sale and leaseback transaction. |
| (iii) | Denotes vessels that we have agreed to sell. |
(*) Denotes charterer’s identity and/or current daily charter rates and/or charter expiration dates, which are treated as confidential.
| 15 |
Dry Bulk Vessel Fleet List
The tables below provide additional information, as of March 9, 2022, about our fleet of dry bulk vessels, including one vessel that we have agreed to acquire.
|
|
Vessel Name | Year Built | Capacity (DWT) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) | |
| 1 | AEOLIAN | 2012 | 83,478 | 26,000 / 100% Participation to the BPI_82 performance(3) | June 2022 | |
| 2 | GRENETA | 2010 | 82,166 | 101% Participation to the BPI_82 performance(4) | October 2022 | |
| 3 | EGYPTIAN MIKE | 2011 | 81,601 | 11,000 | March 2022 | |
| 4 | PHOENIX | 2012 | 81,569 | - | In negotiations for employment | |
| 5 | BUILDER | 2012 | 81,541 | 100% Participation to the BPI_82 performance(4) | September 2022 | |
| 6 | FARMER | 2012 | 81,541 | 101% Participation to the BPI_82 performance(4) (5) | October 2022 | |
| 7 | SAUVAN | 2010 | 79,700 | 21,000(6) | May 2022 | |
| 8 | ROSE | 2008 | 76,619 | 103% Participation to the BPI_82 performance(4) minus $1,336 | August 2022 | |
| 9 | MERCHIA | 2015 | 63,800 | 129% participation to the BSI_58 performance(7)(8) | November 2022 | |
| 10 | SEABIRD | 2016 | 63,553 | 111% participation to the BSI_58 performance(7) | November 2022 | |
| 11 | DAWN | 2018 | 63,530 | 111% participation to the BSI_58 performance(7) | September 2022 | |
| 12 | ORION | 2015 | 63,473 | 111.25% participation to the BSI_58 performance(7) | October 2022 | |
| 13 | DAMON | 2012 | 63,227 | 35,000 | March 2022 | |
| 14 | TITAN I | 2009 | 58,090 | 101% participation to the BSI_58 performance(7) | October 2022 | |
| 15 | ERACLE | 2012 | 58,018 | 31,500(9) | May 2022 | |
| 16 | PYTHIAS | 2010 | 58,018 | 22,000 | May 2022(10) | |
| 17 | ORACLE | 2009 | 57,970 | 16,500 | March 2022 | |
| 18 | CURACAO | 2011 | 57,937 | 25,000 | April 2022 | |
| 19 | URUGUAY | 2011 | 57,937 | 26,000 | March 2022 | |
| 20 | ATHENA | 2012 | 57,809 | 30,500(11) | April 2022 | |
| 21 | THUNDER | 2009 | 57,334 | - | In negotiations for employment | |
| 22 | SERENA | 2010 | 57,266 | 98.25% participation to the BSI_58 performance(7) | May 2022 | |
| 23 | LIBRA | 2010 | 56,729 | 30,000 | March 2022 | |
| 24 | PEGASUS | 2011 | 56,726 | 28,500 | March 2022 | |
| 16 |
|
|
Vessel Name | Year Built | Capacity (DWT) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) | |
| 25 | MERIDA | 2012 | 56,670 | 105% participation to the BSI_58 performance(7) | May 2022 | |
| 26 | CLARA | 2008 | 56,557 | 98% participation to the BSI_58 performance(7) | September 2022 | |
| 27 | PEACE | 2006 | 55,709 | 98.5% participation to the BSI_58 performance(7) | July 2022 | |
| 28 | PRIDE | 2006 | 55,705 | 97.25% participation to the BSI_58 performance(7) | August 2022 | |
| 29 | BERMONDI | 2009 | 55,469 | 99% participation to the BSI_58 performance(7)(12) | January 2023 | |
| 30 | COMITY | 2010 | 37,302 | 100% participation to the BHSI_38 performance(13) | July 2022 | |
| 31 | VERITY | 2012 | 37,163 | 100% participation to the BHSI_38 performance(13) | April 2022 | |
| 32 | PARITY | 2012 | 37,152 | 102% participation to the BHSI_38 performance(13) | December 2022 | |
| 33 | ACUITY | 2011 | 37,149 | 102% participation to the BHSI_38 performance(13) | December 2022 | |
| 34 | EQUITY | 2013 | 37,071 | 102% participation to the BHSI_38 performance(13) | December 2022 | |
| 35 | DISCOVERY | 2012 | 37,019 | 16,250(14) | March 2022 | |
| 36 | TAIBO | 2011 | 35,112 | - | Vessel in dry dock | |
| 37 | BERNIS | 2011 | 34,627 | 95.5% participation to the BHSI_38 performance(13} | December 2022 | |
| 38 | MANZANILLO | 2010 | 34,426 | 18,500 | March 2022 | |
| 39 | ADVENTURE | 2011 | 33,755 | - | In negotiations for employment | |
| 40 | ALLIANCE | 2012 | 33,751 | 14,350 | March 2022 | |
| 41 | CETUS (ex. CHARM) | 2010 | 32,527 | - | In negotiations for employment | |
| 42 | PROGRESS | 2011 | 32,400 | - | In negotiations for employment | |
| 43 | MINER | 2010 | 32,300 | 16,000 | April 2022 | |
| 44 | KONSTANTINOS | 2012 | 32,178 | - | In negotiations for employment | |
| 45 | RESOURCE | 2010 | 31,776 | 16,150 | April 2022 | |
Dry Bulk Vessels Agreed to be Acquired Within 2022
|
|
Vessel Name | Year Built | Capacity (DWT) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) |
| 1 | MAGDA (tbr. NORMA) | 2010 | 58,018 | - | - |
| 17 |
| (1) | Daily charter rates are gross, unless stated otherwise. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could expire. |
| (3) | After April 20, 2022, the gross daily charter rate of Aeolian will be linked to the Baltic Panamax Index-82,500 dwt (“BPI_82”). For this charter, Aeolian received a gross ballast bonus of $600,000. |
| (4) | Gross daily charter rate linked to the BPI_82. |
| (5) | For this charter, Farmer received a gross ballast bonus of $490,000. |
| (6) | For this charter, Sauvan received a gross ballast bonus of $1,050,000. |
| (7) | Gross daily charter rate linked to the Baltic Exchange Supramax Index (“BSI_58’’). |
| (8) | After May 1, 2022, the gross daily charter rate of Merchia will be linked to the BSI_58 performance with a participation rate of 113%. |
| (9) | For every additional day after May 5, 2022, the gross daily charter rate of Eracle will be $34,000. |
| (10) | Latest redelivery date. |
| (11) | For every additional day after April 29, 2022, the gross daily charter rate of Athena will be $34,000. |
| (12) | For this charter, Bermondi received a gross ballast bonus of $421,000. |
| (13) | Gross daily charter rate linked to the Baltic Exchange Handysize Index (“BHSI_38’’). |
| (14) | For every additional day after March 27, 2022, the gross daily charter rate of Discovery will be $20,000. |
| 18 |
Consolidated Statements of Income
| Year ended December 31, | Three-months ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share amounts) | 2020 | 2021 | 2020 | 2021 | ||||||||||||
| (Audited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| REVENUES: | ||||||||||||||||
| Voyage revenue | $ | 460,319 | $ | 793,639 | $ | 119,143 | $ | 283,918 | ||||||||
| EXPENSES: | ||||||||||||||||
| Voyage expenses | (7,372 | ) | (13,311 | ) | (989 | ) | (5,831 | ) | ||||||||
| Voyage expenses – related parties | (6,516 | ) | (11,089 | ) | (1,763 | ) | (3,750 | ) | ||||||||
| Vessels’ operating expenses | (117,054 | ) | (179,981 | ) | (32,055 | ) | (60,665 | ) | ||||||||
| General and administrative expenses | (7,360 | ) | (9,405 | ) | (2,059 | ) | (3,445 | ) | ||||||||
| Management fees – related parties | (21,616 | ) | (29,621 | ) | (5,593 | ) | (9,682 | ) | ||||||||
| General and administrative expenses – non-cash component | (3,655 | ) | (7,414 | ) | (1,239 | ) | (1,891 | ) | ||||||||
| Amortization of dry-docking and special survey costs | (9,056 | ) | (10,433 | ) | (2,291 | ) | (2,869 | ) | ||||||||
| Depreciation | (108,700 | ) | (136,958 | ) | (27,082 | ) | (40,948 | ) | ||||||||
| Gain / (loss) on sale / disposal of vessels, net | (79,120 | ) | 45,894 | 499 | 27,819 | |||||||||||
| Loss on vessels held for sale | (7,665 | ) | - | (7,665 | ) | - | ||||||||||
| Vessels’ impairment loss | (31,577 | ) | - | - | - | |||||||||||
| Foreign exchange gains / (losses) | (300 | ) | 29 | (97 | ) | (118 | ) | |||||||||
| Operating income | $ | 60,328 | $ | 441,350 | $ | 38,809 | $ | 182,538 | ||||||||
| OTHER INCOME / (EXPENSES): | ||||||||||||||||
| Interest income | $ | 1,827 | $ | 1,587 | $ | 363 | $ | 33 | ||||||||
| Interest and finance costs | (68,702 | ) | (86,047 | ) | (17,250 | ) | (25,254 | ) | ||||||||
| Swaps’ breakage cost | (6 | ) | - | - | - | |||||||||||
| Income from equity method investments | 16,195 | 12,859 | 3,994 | 854 | ||||||||||||
| Gain on sale of equity securities | - | 60,161 | - | 2,017 | ||||||||||||
| Dividend income from investment in equity securities | - | 1,833 | - | - | ||||||||||||
| Other | 1,181 | 4,624 | 713 | 993 | ||||||||||||
| Gain / (loss) on derivative instruments | (1,946 | ) | (1,246 | ) | 446 | (27 | ) | |||||||||
| Total other income / (expenses) | $ | (51,451 | ) | $ | (6,229 | ) | $ | (11,734 | ) | $ | (21,384 | ) | ||||
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | ||||||||
| Earnings allocated to Preferred Stock | (31,082 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | ||||||||
| Gain on retirement of Preferred Stock | 619 | - | - | - | ||||||||||||
| Net Income / (Loss) available to common stockholders | $ | (21,586 | ) | $ | 404,053 | $ | 19,308 | $ | 153,387 | |||||||
| Earnings / (Losses) per common share, basic and diluted | $ | (0.18 | ) | $ | 3.28 | $ | 0.16 | $ | 1.24 | |||||||
| Weighted average number of shares, basic and diluted | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||||||
| 19 |
COSTAMARE INC.
Consolidated Balance Sheets
| As of December 31, | As of December 31, | |||||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2021 | ||||||
| ASSETS | (Audited) | (Unaudited) | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 143,922 | $ | 276,002 | ||||
| Restricted cash | 4,998 | 8,856 | ||||||
| Accounts receivable | 8,249 | 20,978 | ||||||
| Inventories | 10,455 | 21,365 | ||||||
| Due from related parties | 1,623 | - | ||||||
| Fair value of derivatives | 460 | - | ||||||
| Insurance claims receivable | 883 | 3,970 | ||||||
| Asset held for sale | 12,416 | 78,799 | ||||||
| Time charter assumed | 191 | 198 | ||||||
| Accrued charter revenue | - | 7,361 | ||||||
| Prepayments and other | 8,853 | 8,595 | ||||||
| Total current assets | $ | 192,050 | $ | 426,124 | ||||
| FIXED ASSETS, NET: | ||||||||
| Right-of-use assets | $ | 199,098 | $ | 191,303 | ||||
| Vessels and advances, net | 2,450,510 | 3,650,192 | ||||||
| Total fixed assets, net | $ | 2,649,608 | $ | 3,841,495 | ||||
| NON-CURRENT ASSETS: | ||||||||
| Equity method investments | $ | 78,227 | $ | 19,872 | ||||
| Deferred charges, net | 27,682 | 31,859 | ||||||
| Accounts receivable, non-current | 3,896 | 5,076 | ||||||
| Restricted cash | 42,976 | 68,670 | ||||||
| Fair value of derivatives, non-current | - | 3,429 | ||||||
| Accrued charter revenue, non-current | - | 8,183 | ||||||
| Time charter assumed, non-current | 839 | 667 | ||||||
| Debt securities, held to maturity (Net of allowance for credit losses of $569 as of December 31, 2020) | 6,813 | - | ||||||
| Other non-current assets | 8,425 | 1,666 | ||||||
| Total assets | $ | 3,010,516 | $ | 4,407,041 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 147,137 | $ | 272,365 | ||||
| Accounts payable | 7,582 | 18,865 | ||||||
| Due to related parties | 432 | 1,694 | ||||||
| Finance lease liabilities | 16,495 | 16,676 | ||||||
| Accrued liabilities | 17,621 | 27,304 | ||||||
| Unearned revenue | 11,893 | 23,830 | ||||||
| Fair value of derivatives | 3,440 | 6,876 | ||||||
| Other current liabilities | 2,374 | 2,417 | ||||||
| Total current liabilities | $ | 206,974 | $ | 370,027 | ||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term debt, net of current portion | $ | 1,305,076 | $ | 2,169,718 | ||||
| Finance lease liabilities, net of current portion | 116,366 | 99,689 | ||||||
| Fair value of derivatives, net of current portion | 3,653 | 7,841 | ||||||
| Unearned revenue, net of current portion | 29,627 | 33,867 | ||||||
| Total non-current liabilities | $ | 1,454,722 | $ | 2,311,115 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock | $ | - | $ | - | ||||
| Common stock | 12 | 12 | ||||||
| Additional paid-in capital | 1,366,486 | 1,386,636 | ||||||
| Retained earnings / (Accumulated deficit) | (9,721 | ) | 341,482 | |||||
| Accumulated other comprehensive loss | (7,957 | ) | (2,231 | ) | ||||
| Total stockholders’ equity | $ | 1,348,820 | $ | 1,725,899 | ||||
| Total liabilities and stockholders’ equity | $ | 3,010,516 | $ | 4,407,041 | ||||
| 20 |
Financial Summary
| Year ended December 31, | Three-month period ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2020 | 2021 | 2020 | 2021 | ||||||||||||
| Voyage revenue | $ | 460,319 | $ | 793,639 | $ | 119,143 | $ | 283,918 | ||||||||
| Accrued charter revenue (1) | $ | 21,250 | $ | (11,303 | ) | $ | 5,308 | $ | (14,473 | ) | ||||||
| Amortization of Time-charter assumed | $ | 192 | $ | (424 | ) | $ | 48 | $ | 39 | |||||||
| Voyage revenue adjusted on a cash basis (2) | $ | 481,761 | $ | 781,912 | $ | 124,499 | $ | 269,484 | ||||||||
| Adjusted Net Income available to common stockholders (3) | $ | 123,671 | $ | 289,873 | $ | 32,666 | $ | 112,070 | ||||||||
| Weighted Average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||||||
| Adjusted Earnings per share (3) | $ | 1.02 | $ | 2.36 | $ | 0.27 | $ | 0.91 | ||||||||
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | ||||||||
| Net Income / (Loss) available to common stockholders | $ | (21,586 | ) | $ | 404,053 | $ | 19,308 | $ | 153,387 | |||||||
| Weighted Average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||||||
| Earnings / (Losses) per share | $ | (0.18 | ) | $ | 3.28 | $ | 0.16 | $ | 1.24 | |||||||
(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. The reverse is true for charters with descending rates.
(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. 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” tables above.
(3) Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are non-GAAP measures. Refer to the reconciliation of Net Income to Adjusted Net Income.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. 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. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month periods and years ended December 31, 2021 and 2020. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per Share.
| 21 |
Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share
| Year ended December 31, | Three-month period ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2020 | 2021 | 2020 | 2021 | ||||||||||||
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | ||||||||
| Earnings allocated to Preferred Stock | (31,082 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | ||||||||
| Gain on retirement of Preferred Stock | 619 | - | - | - | ||||||||||||
| Net Income / (Loss) available to common stockholders | (21,586 | ) | 404,053 | 19,308 | 153,387 | |||||||||||
| Accrued charter revenue | 21,250 | (11,303 | ) | 5,308 | (14,473 | ) | ||||||||||
| General and administrative expenses - non-cash component | 3,655 | 7,414 | 1,239 | 1,891 | ||||||||||||
| Amortization of Time charter assumed | 192 | (424 | ) | 48 | 39 | |||||||||||
| Realized (gain) / loss on Euro/USD forward contracts (1) | (488 | ) | 460 | - | 434 | |||||||||||
| Vessels’ impairment loss | 31,577 | - | - | - | ||||||||||||
| (Gain) / loss on sale / disposal of vessels, net | 79,120 | (45,894 | ) | (499 | ) | (27,819 | ) | |||||||||
| Non-recurring, non-cash write-off of loan deferred financing costs | 521 | 964 | 43 | 601 | ||||||||||||
| Loss on vessels held for sale | 7,665 | - | 7,665 | - | ||||||||||||
| Gain on sale of vessel by a jointly owned company with York included in equity gain on investments | - | (5,726 | ) | - | - | |||||||||||
| Swap’s breakage costs | 6 | - | - | - | ||||||||||||
| (Gain) / Loss on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments | 1,759 | 1,246 | (446 | ) | 27 | |||||||||||
| Gain on sale of equity securities | - | (60,161 | ) | - | (2,017 | ) | ||||||||||
| Other non-recurring, non-cash items | - | (756 | ) | - | - | |||||||||||
| Adjusted Net Income available to common stockholders | $ | 123,671 | $ | 289,873 | $ | 32,666 | $ | 112,070 | ||||||||
| Adjusted Earnings per Share | $ | 1.02 | $ | 2.36 | $ | 0.27 | $ | 0.91 | ||||||||
| Weighted average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||||||
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock and gain on retirement of preferred stock, but before non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates, realized (gain)/loss on Euro/USD forward contracts, vessels’ impairment loss, (gain)/loss on sale / disposal of vessels, net, loss on vessels held for sale, gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments, gain on sale of equity securities, swap’s breakage costs, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, non-cash changes in fair value of derivatives and other non-recurring, non-cash items. “Accrued charter revenue” is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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 available to common stockholders 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.
(1) Items to consider for comparability include gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases to Adjusted Net Income available to common stockholders.
22
