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Costamare Inc. Reports Results for the Second Quarter and the Six-Month Period Ended June 30, 2021

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MONACO, July 28, 2021 (GLOBE NEWSWIRE) -- Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today reported unaudited financial results for the second quarter (“Q2 2021”) and six-months ended June 30, 2021.

I.

PROFITABILITY

Q2 2021 Net Income available to common stockholders of $82.8 million.

Q2 2021 Earnings per Share of $0.67.

Q2 2021 Adjusted Net Income available to common stockholders(1) of $58.3 million.

Q2 2021 Adjusted Earnings per Share(1) of $0.47.


II.

SALE AND PURCHASE ACTIVITY

Agreed to acquire an additional 21 dry bulk vessels.

Total fleet of 37 committed dry bulk vessels, 14 of which have been delivered.

Delivered the 1996-built, 1,504 TEU containership Prosper to her new owners. The sale resulted in a capital gain of $1.7 million.


III.

NEW CHARTER ARRANGEMENTS

10 new or extended container vessel charters since last quarter including the forward fixture of the two 2006-built, 9,469 TEU vessels Cosco Guangzhou and Cosco Ningbo for 3 years at a daily rate of $72,700, with estimated delivery to the new charterer in between the second and third quarters of 2022. The current daily rate for these vessels is $30,900.

7 new dry bulk vessel charters.


IV.

NEW DEBT FINANCING AND CAPITAL STRUCTURE

New agreements for the financing of containerships since last quarter for an aggregate amount of $261.6 million.

New agreements for the financing of dry bulk vessels since last quarter for an aggregate amount of $389 million including two hunting license bank facilities totaling $245 million.

New commitment in the form of a hunting license facility for the financing of the acquisition of dry bulk vessels for an aggregate amount of $150 million with a European financial institution, which is subject to documentation.

Liquidity of $353.8 million as of the end of Q2 2021 (including our share of cash amounting to $4.9 million held in companies co-owned with York Capital), which coupled with the $210.8 million of undrawn funds from the two recently signed hunting license bank facilities amounts to $564.6 million.

(1) Adjusted Net Income available to common stockholders and respective per share figures are non-GAAP measures and should not be used in isolation or as substitutes for Costamare’s financial results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). For the definition and reconciliation of these measures to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to Exhibit I.

NEW BUSINESS DEVELOPMENTS

A.

New charter agreements

  • The Company has chartered in total 10 containerships since our previous quarterly earnings release. More specifically, the Company agreed to:

    • Charter the 2006-built, 9,469 TEU containerships Cosco Guangzhou and Cosco Ningbo for a period of 36 to 39 months at charterers’ option, commencing between the second and third quarters of 2022, each at a daily rate of $72,700. Current daily rate is $30,900.

    • Charter the 2003-built, 6,724 TEU containership MSC Methoni with Maersk for a period of 56 to 60 months at charterers’ option, commencing between September 2021 and December 2021, at a daily rate of $46,500. Current daily rate is $29,000.

    • Charter the 2011-built, 4,178 TEU containership Neokastro with CMA CGM for a period of 60 to 63 months, commencing in the first quarter of 2022, at a daily rate of $39,000. Current daily rate is $24,000.

    • Charter the 2001-built, 6,712 TEU containership Porto Cheli with Maersk for a period of 60 to 64 months at charterers’ option, starting from June 9, 2021, at a daily rate of $30,075.

    • Charter the 2002-built, 5,908 TEU containership Porto Kagio with Maersk for a period of 60 to 64 months at charterers’ option, starting from June 9, 2021, at a daily rate of $28,822.

    • Charter the 2002-built, 5,570 TEU containership Porto Germeno with Maersk for a period of 60 to 64 months at charterers’ option, starting from June 29, 2021, at a daily rate of $28,822.

    • Extend the charter of the 2002-built, 4,132 TEU containership Ulsan with Maersk for a period starting from October 1, 2021 and expiring at charterers’ option during the period from January 20, 2026 to May 20, 2026, at a daily rate of $34,730. Current daily rate is $12,000.

    • Charter the 2001-built, 1,550 TEU containership Arkadia with China Navigation for a period of 22 to 24 months at charterers’ option, starting from July 5, 2021, at a daily rate of $21,500. Previous daily rate was $8,650.

    • Extend the charter of the 2001-built, 1,078 TEU containership Luebeck with MSC for a period starting from March 19, 2022 for a period of 24 to 26 months at charterers’ option, at a daily rate of $15,000. Current daily rate is $7,750.

  • The Company has chartered in total 7 dry bulk vessels. More specifically, the Company has:

    • Chartered the 2012-built, 81,500 dwt dry bulk vessel Builder for a period expiring between October 7, 2021 and January 5, 2022 at charterers’ option, at a daily rate of $25,000.

    • Chartered the 2011-built, 56,700 dwt dry bulk vessel Pegasus for a period expiring between September 25, 2021 and December 9, 2021 at charterers’ option, at a daily rate of $26,150.

    • Chartered the 2012-built, 58,000 dwt dry bulk vessel Eracle for a period expiring between October 11, 2021 and December 25, 2021 at charterers’ option, at a daily rate of $30,000.

    • Chartered the 2010-built, 79,700 dwt dry bulk vessel Sauvan for a period expiring between October 17, 2021 and December 31, 2021 at charterers’ option, at a daily rate of $30,250.

    • Chartered the 2011-built, 34,600 dwt dry bulk vessel Bernis for a period expiring between November 17, 2021 and January 31, 2022 at charterers’ option, at a daily rate of $25,250.

    • Chartered the 2006-built, 55,700 dwt dry bulk vessel Peace for a period expiring between September 12, 2021 and September 17, 2021 at charterers’ option, at a daily rate of $28,000.

    • Chartered the 2006-built, 55,700 dwt dry bulk vessel Pride for a period expiring around the end of August 2021, at a daily rate of $31,000.

B.

Dry Bulk Vessels Acquisitions

  • Since our previous quarterly earnings release, we have taken delivery of the following 14 dry bulk vessels:

    • m/v Builder, 2012-built, 81,500 dwt.

    • m/v Sauvan, 2010-built, 79,700 dwt.

    • m/v Seabird, 2016-built, 63,600 dwt.

    • m/v Dawn, 2018-built, 63,500 dwt.

    • m/v Eracle, 2012-built, 58,000 dwt.

    • m/v Pegasus, 2011-built, 56,700 dwt.

    • m/v Peace, 2006-built, 55,700 dwt.

    • m/v Pride, 2006-built, 55,700 dwt.

    • m/v Interlink Verity, 2012-built, 37,200 dwt.

    • m/v Acuity, 2011-built, 37,100 dwt.

    • m/v Bernis, 2011-built, 34,600 dwt.

    • m/v Manzanillo, 2010-built, 34,400 dwt.

    • m/v Alliance, 2012-built, 33,800 dwt.

    • m/v Adventure, 2011-built, 33,800 dwt.

  • Furthermore, we have agreed to acquire the following 23 dry bulk vessels until the end of 2021:

    • m/v Spring Aeolian (tbr. Aeolian), 2012-built, 83,500 dwt.

    • m/v Jaigarh (tbr. Greneta), 2010-built, 82,200 dwt.

    • m/v Pedhoulas Farmer (tbr. Farmer), 2012-built, 81,500 dwt.

    • m/v Imperial Rose (tbr. Rose), 2008-built, 76,600 dwt.

    • m/v Darya Lakshmi (tbr. Bermondi), 2009-built, 55,500 dwt.

    • m/v Bulk Titan (tbr. Titan), 2009-built, 58,100 dwt.

    • m/v Star Athena (tbr. Athena), 2012-built, 58,000 dwt.

    • m/v Bulk Curacao (tbr. Curacao), 2011-built, 57,900 dwt.

    • m/v Bulk Uruguay (tbr. Uruguay), 2011-built, 57,900 dwt.

    • m/v Viet Thuan 56-01 (tbr. Thunder), 2009-built, 57,300 dwt.

    • m/v Serene Susannah (tbr. Serena), 2010-built, 57,300 dwt.

    • m/v Atlantic Merida (tbr. Merida), 2012-built, 56,700 dwt.

    • m/v Lara (tbr. Clara), 2008-built, 56,600 dwt.

    • m/v Interlink Comity (tbr. Comity), 2010-built, 37,300 dwt.

    • m/v Interlink Parity (tbr. Parity), 2012-built, 37,200 dwt.

    • m/v Interlink Equity (tbr. Equity), 2013-built, 37,100 dwt.

    • m/v N Discovery (tbr. Discovery), 2012-built, 37,000 dwt.

    • m/v Jia Tai (tbr. Taibo), 2011-built, 35,100 dwt.

    • m/v MS Charm (tbr. Charm), 2010-built, 32,500 dwt.

    • m/v Atlantic Progress (tbr. Progress), 2011-built, 32,400 dwt.

    • m/v Ming Yuan (tbr. Miner), 2010-built, 32,300 dwt.

    • m/v Konstantinos M (tbr. Konstantinos), 2012-built, 32,200 dwt.

    • m/v Great Resource (tbr. Resource), 2010-built, 31,800 dwt.

C.

New Financing Agreements

  • In June 2021, we signed a loan facility agreement with a European financial institution for an amount of $158.1 million, in order to refinance the existing indebtedness of 8 containerships and finance the acquisition of containerships Porto Kagio, Porto Cheli and Porto Germeno. The new facility will be repayable over 5 years.

  • In June 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $79 million, in order to finance the acquisition of containerships Androusa, Norfolk, CO Kobe (tbr. Dyros) and Cosco Fukuyama (tbr. Gialova). The new facility will be repayable over 4 years.

  • In July 2021, we signed a revolving loan facility agreement with a leading US financial institution for an amount of $24.5 million. The new facility will be repayable over 1 year.

  • In July 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $81.5 million, in order to finance the acquisition of 8 dry bulk vessels. The facility will be repayable over 5 years.

  • In July 2021, we signed a loan facility agreement with a leading European financial institution for an amount of $62.5 million, in order to finance the acquisition of 8 dry bulk vessels. The facility will be repayable over 5 years.

  • In July 2021, we signed a hunting license loan facility agreement with a European financial institution for an amount of up to $120 million for the purposes of financing the acquisition cost of dry bulk vessels. The facility will be repayable over a period of 5 to 6 years.

  • In July 2021, we signed a hunting license loan facility agreement with a European financial institution for an amount of up to $125 million for the purposes of financing the acquisition cost of dry bulk vessels. The facility will be repayable over a period of 5 years.

D.

Dividend announcements

  • On July 1, 2021, we declared a dividend for the quarter ended June 30, 2021, of $0.115 per share on our common stock, which will be paid on August 5, 2021, to stockholders of record of common stock as of July 20, 2021.

  • On July 1, 2021, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, a dividend of $0.531250 per share on our Series C Preferred Stock, a dividend of $0.546875 per share on our Series D Preferred Stock and a dividend of $0.554688 per share on our Series E Preferred Stock, which were all paid on July 15, 2021 to holders of record as of July 14, 2021.

Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:

“The container market rebound that began in the second half of last year has continued into the first half of this year, drawing strength from favorable supply and demand dynamics. Strong consumer demand, low inventory levels, and supply chain constraints have all contributed to record charter rates and longer charter durations.

All our containerships chartered during the quarter have been fixed at increasingly high levels of hire.

On the dry bulk side, we are pleased to report the acquisition of 21 additional vessels, since we first announced our entry into this sector. Our dry bulk fleet comprises of 37 vessels in total between 32,000 DWT and 85,000 DWT, with an average age of 10 years. Up to now, 14 ships have been delivered, with the rest of the fleet expected to be delivered by year-end.

The dry bulk acquisitions result from our decision to invest in this liquid sector where supply is limited by a low orderbook and demand is being driven by increased infrastructure spending and commodity consumption.

Supported by contracted revenues of US$ 3.3 billion and an average time charter duration of more than four years for our containership fleet, we have 15 containerships coming off charter over the next 18 months and 37 dry bulk vessels operating in the spot market, favorably positioning our company, should the currently strong market conditions continue.”


Financial Summary

Six-month period ended
June 30,

Three-month period ended
June 30,

(Expressed in thousands of U.S. dollars, except share and per share data):

2020

2021

2020

2021

Voyage revenue

$

233,273

$

293,495

$

111,869

$

166,770

Accrued charter revenue (1)

$

7,721

$

2,146

$

7,025

$

1,114

Amortization of Time-charter assumed

$

95

$

(345

)

$

47

$

(345

)

Voyage revenue adjusted on a cash basis (2)

$

241,089

$

295,296

$

118,941

$

167,539

Adjusted Net Income available to common stockholders (3)

$

64,265

$

96,262

$

31,705

$

58,275

Weighted Average number of shares

119,927,560

122,615,427

120,319,180

122,844,260

Adjusted Earnings per share (3)

$

0.54

$

0.79

$

0.26

$

0.47

Net Income / (Loss)

$

(43,447

)

$

158,757

$

(76,223

)

$

90,616

Net Income / (Loss) available to common stockholders

$

(58,289

)

$

143,309

$

(83,913

)

$

82,762

Weighted Average number of shares

119,927,560

122,615,427

120,319,180

122,844,260

Earnings / (Losses) per share

$

(0.49

)

$

1.17

$

(0.70

)

$

0.67

(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will exceed revenue recognized on a straight-line basis.
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash “Accrued charter revenue” recorded under charters with escalating charter rates. However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). We believe that the presentation of Voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter party agreements are described in the notes to the “Fleet List” below.
(3) Adjusted Net Income 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 and the six-month periods ended June 30, 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.

Exhibit I
Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share

Six-month period ended
June 30,

Three-month period ended
June 30,

(Expressed in thousands of U.S. dollars, except share and per share data)

2020

2021

2020

2021

Net Income / (Loss)

$

(43,447

)

$

158,757

$

(76,223

)

$

90,616

Earnings allocated to Preferred Stock

(15,461

)

(15,448

)

(7,768

)

(7,854

)

Gain on retirement of Preferred Stock

619

-

78

-

Net Income / (Loss) available to common stockholders

(58,289

)

143,309

(83,913

)

82,762

Accrued charter revenue

7,721

2,146

7,025

1,114

General and administrative expenses - non-cash component

1,508

3,207

832

1,768

Amortization of Time charter assumed

95

(345

)

47

(345

)

Realized gain on Euro/USD forward contracts (1)

(78

)

(174

)

(54

)

(96

)

Vessels’ impairment loss

31,577

-

28,506

-

Gain on sale / disposals of vessels, net

(10

)

(1,406

)

-

(1,666

)

Non-recurring, non-cash write-off of loan deferred financing costs

478

363

478

-

Loss on vessels held for sale

79,197

-

78,965

-

(Gain) / loss on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments (1)

2,066

1,012

(181

)

(105

)

Fair value measurement / Change in fair value of equity securities

-

(51,094

)

-

(25,157

)

Other non-recurring, non-cash item

-

(756

)

-

-

Adjusted Net Income available to common stockholders

$

64,265

$

96,262

$

31,705

$

58,275

Adjusted Earnings per Share

$

0.54

$

0.79

$

0.26

$

0.47

Weighted average number of shares

119,927,560

122,615,427

120,319,180

122,844,260

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 charter rates, realized gain on Euro/USD forward contracts, vessels’ impairment loss, gain on sale / disposal of vessels, net, loss on vessels held for sale, fair value measurement of equity securities / change in fair value of equity securities, 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.

Results of Operations

Three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020

During the three-month periods ended June 30, 2021 and 2020, we had an average of 71.5 and 60.0 vessels, respectively, in our fleet.

In the three-month period ended June 30, 2021, we accepted delivery of the newbuild container vessel YM Tiptop with a TEU capacity of 12,690, the secondhand container vessels Androusa, Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with an aggregate TEU capacity of 26,705 and we sold the container vessel Prosper with a TEU capacity of 1,504.

Furthermore, in the three-month period ended June 30, 2021, we acquired all 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. 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 will not receive a profit as a result of the acquisition. Three of the dry bulk vessels that were part of the acquisition, the Builder, Pegasus and Adventure (with an aggregate DWT of 171,997), were delivered to us during the three-month period ended June 30, 2021.

In the three-month periods ended June 30, 2021 and 2020, our fleet ownership days totaled 6,509 and 5,460 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)

(Expressed in millions of U.S. dollars,

Three-month period ended June 30,

Change

Percentage

except percentages)

2020

2021

Change

Voyage revenue

$

111.9

$

166.8

$

54.9

49.1

%

Voyage expenses

(1.6

)

(2.0

)

0.4

25.0

%

Voyage expenses – related parties

(1.5

)

(2.4

)

0.9

60.0

%

Vessels’ operating expenses

(26.9

)

(37.8

)

10.9

40.5

%

General and administrative expenses

(2.4

)

(1.7

)

(0.7

)

(29.2

%)

Management fees – related parties

(5.2

)

(6.3

)

1.1

21.2

%

General and administrative expenses - non-cash component

(0.8

)

(1.8

)

1.0

125.0

%

Amortization of dry-docking and special survey costs

(2.3

)

(2.5

)

0.2

8.7

%

Depreciation

(27.6

)

(31.6

)

4.0

14.5

%

Loss on vessels held for sale

(79.0

)

-

(79.0

)

n.m.

Vessel’s impairment loss

(28.5

)

-

(28.5

)

n.m.

Gain on sale / disposal of vessels

-

1.7

1.7

n.m.

Foreign exchange losses

(0.1

)

-

(0.1

)

n.m.

Interest income

0.5

1.1

0.6

120.0

%

Interest and finance costs

(16.9

)

(20.4

)

3.5

20.7

%

Change in fair value measurement of equity securities

-

25.1

25.1

n.m.

Income from equity method investments

4.1

1.0

(3.1

)

(75.6

%)

Other

(0.1

)

1.3

1.4

n.m.

Gain on derivative instruments

0.2

0.1

(0.1

)

(50.0

%)

Net Income / (Loss)

$

(76.2

)

$

90.6


(Expressed in millions of U.S. dollars,

Three-month period ended June 30,

Percentage

except percentages)

2020

2021

Change

Change

Voyage revenue

$

111.9

$

166.8

$

54.9

49.1

%

Accrued charter revenue

7.0

1.1

(5.9

)

(84.3

%)

Amortization of time charter assumed

0.1

(0.3

)

(0.4

)

n.m.

Voyage revenue adjusted on a cash basis (2)

$

119.0

$

167.6

$

48.6

40.8

%


Vessels’ operational data

Three-month period ended June 30,

Percentage

2020

2021

Change

Change

Average number of vessels

60.0

71.5

11.5

19.2

%

Ownership days

5,460

6,509

1,049

19.2

%

Number of vessels under dry-docking

1

6

5



Segmental Financial Summary (1)

Three-month period ended June 30, 2021

Container vessels

Dry bulk vessels

Other

Total

Voyage revenue

$

165.9

$

0.9

$

-

$

166.8

Voyage expenses

(1.9

)

(0.1

)

-

(2.0

)

Voyage expenses – related parties

(2.4

)

-

-

(2.4

)

Vessels’ operating expenses

(37.6

)

(0.2

)

-

(37.8

)

General and administrative expenses

(1.7

)

-

-

(1.7

)

Management fees – related parties

(6.3

)

-

-

(6.3

)

General and administrative expenses - non-cash component



(1.8



)



-



-



(1.8



)

Amortization of dry-docking and special survey costs



(2.5



)



-



-



(2.5



)

Depreciation

(31.5

)

(0.1

)

-

(31.6

)

Gain on sale / disposal of vessels

1.7

-

-

1.7

Interest income

1.1

-

-

1.1

Interest and finance costs

(20.4

)

-

-

(20.4

)

Change in fair value measurement of equity securities



-



-



25.1



25.1

Income from equity method investments

-

-

1.0

1.0

Other

1.3

-

-

1.3

Gain on derivative instruments

0.1

-

-

0.1

Net Income

$

64.0

$

0.5

$

26.1

$

90.6

(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 “Financial Summary” above for the reconciliation of Voyage revenue adjusted on a cash basis.

Voyage Revenue

Voyage revenue increased by 49.1%, or $54.9 million, to $166.8 million during the three-month period ended June 30, 2021, from $111.9 million during the three-month period ended June 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the third and fourth quarter of 2020 and fifteen container vessels and three dry bulk vessels acquired during the first half of 2021 and (ii) to increased charter rates in certain of our container vessels; partly off-set by revenue not earned by four container vessels sold during the second half of 2020 and two container vessels sold during the first half of 2021.

Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 40.8%, or $48.6 million, to $167.6 million during the three-month period ended June 30, 2021, from $119.0 million during the three-month period ended June 30, 2020. Accrued charter revenue for the three-month periods ended June 30, 2021 and 2020 was a positive amount of $1.1 million and $7.0 million, respectively.

Voyage Expenses

Voyage expenses were $2.0 million and $1.6 million for the three-month periods ended June 30, 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 $2.4 million and $1.5 million for the three-month periods ended June 30, 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 $0.3 million and $0.1 million, in the aggregate, for the three-month periods ended June 30, 2021 and 2020, respectively.

Vessels’ Operating Expenses

Vessels’ operating expenses, which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $37.8 million and $26.9 million during the three-month periods ended June 30, 2021 and 2020, respectively. Daily vessels’ operating expenses were $5,811 and $4,925 for the three-month periods ended June 30, 2021 and 2020, respectively. 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 $1.7 million and $2.4 million during the three-month periods ended June 30, 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 $6.3 million and $5.2 million during the three-month periods ended June 30, 2021 and 2020, respectively.

General and Administrative Expenses - non-cash component

General and administrative expenses - non-cash component for the three-month period ended June 30, 2021 amounted to $1.8 million, representing the value of the shares issued to a related party manager on June 30, 2021. General and administrative expenses - non-cash component for the three-month period ended June 30, 2020 amounted to $0.8 million, representing the value of the shares issued to a related party manager on June 30, 2020.

Amortization of Dry-Docking and Special Survey

Amortization of deferred dry-docking and special survey costs was $2.5 million and $2.3 million during the three-month periods ended June 30, 2021 and 2020, respectively. During the three-month period ended June 30, 2021, five vessels underwent and completed their special survey and one vessel was in the process of completing its special survey. During the three-month period ended June 30, 2020, one vessel underwent and completed its special survey.

Depreciation

Depreciation expense for the three-month periods ended June 30, 2021 and 2020 was $31.6 million and $27.6 million, respectively.

Gain on Sale / Disposal of Vessels

During the three-month period ended June 30, 2021, we recorded a gain of $1.7 million from the sale of the container vessel Prosper, which was classified as vessel held for sale as at March 31, 2021.

Loss on Vessels Held for Sale

During the three-month period ended June 30, 2021, the container vessels Zim New York, and Zim Shanghai were classified as vessels held for sale and the container vessel Venetiko continues to be classified as vessel held for sale (initially classified as vessel held for sale as of March 31, 2021). No loss on vessels held for sale was recorded during the second quarter of 2021, since each vessel’s estimated market value exceeded each vessel’s carrying value. During the three-month period ended June 30, 2020, we recorded a loss of $78.7 million on the container vessels Kokura, Kawasaki and Singapore Express that were classified as vessels held for sale as at June 30, 2020, and an additional loss of $0.3 million on the container vessel Zagora that was classified as vessel held for sale as at December 31, 2019, representing the expected loss from their sale during the next twelve-month period.

Vessels’ impairment loss

During the three-month period ended June 30, 2021, no impairment loss was recorded. During the three-month period ended June 30, 2020, we recorded an impairment loss in relation to two of our container vessels in the amount of $28.5 million, in the aggregate.

Interest Income

Interest income amounted to $1.1 million and $0.5 million for the three-month periods ended June 30, 2021 and 2020, respectively.

Interest and Finance Costs

Interest and finance costs were $20.4 million and $16.9 million during the three-month periods ended June 30, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020; partly off-set by decreased financing cost during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020.

Change in Fair Value of Equity securities

Change in fair value of equity securities of $25.1 million for the three-month period ended June 30, 2021, represents the difference between the aggregate fair value of 1,221,800 ordinary shares of ZIM that we own as at June 30, 2021 compared to the fair value of such shares as of March 31, 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 June 30, 2021, we recorded an income from equity method investments of $1.0 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. 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 June 30, 2021, six companies are jointly owned with York (of which, five companies currently own container vessels). During the three-month period ended June 30, 2020, we recorded an income from equity method investments of $4.1 million relating to investments under the Framework Deed.

Loss on Derivative Instruments

The fair value of our ten interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of June 30, 2021 equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2021, the fair value of these ten interest rate derivative instruments and two cross currency rate swaps, in aggregate, amounted to a liability of $11.7 million. The change in the fair value of the interest rate derivative instruments and cross currency rate 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 and is presented in the same income statement line item as the earnings effect of the hedged item while the change in the fair value of the interest rate derivatives, representing hedge components excluded from the assessment of effectiveness are recognized currently in earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments. For the three-month period ended June 30, 2021, a loss of $3.9 million has been included in OCI and a loss of $0.1 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 three-month period ended June 30, 2021.

Cash Flows

Three-month periods ended June 30, 2021 and 2020

Condensed cash flows

Three-month period ended June 30,

(Expressed in millions of U.S. dollars)

2020

2021

Net Cash Provided by Operating Activities

$

71.5

$

104.0

Net Cash Used in Investing Activities

$

(3.1

)

$

(195.1

)

Net Cash Provided by / (Used in) Financing Activities

$

(104.7

)

$

204.2

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the three-month period ended June 30, 2021, increased by $32.5 million to $104.0 million, from $71.5 million for the three-month period ended June 30, 2020. The increase is mainly attributable to increased cash from operations of $48.6 million, to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $10.3 million; partly off by increased payments for interest (including swap payments) of $2.4 million during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020 and by increased special survey costs of $5.0 million during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020.

Net Cash Used in Investing Activities

Net cash used in investing activities was $195.1 million in the three-month period ended June 30, 2021, which mainly consisted of (i) net payments for the acquisition of the 51% equity interest in one company, previously jointly owned with York pursuant to the Framework Deed, (ii) payments for the delivery of one newbuild container vessel, four secondhand container vessels and one dry bulk vessel, (iii) advance payments for the acquisition of twelve secondhand dry bulk vessels and (iv) payments for upgrades for certain of our vessels; partly off-set by proceeds we received from the sale of one vessel.

Net cash used in investing activities was $3.1 million in the three-month period ended June 30, 2020, which mainly consisted of payments for upgrades for certain of our container vessels; partly off-set by return of capital we received from nine entities jointly owned with York pursuant to the Framework Deed and advance payments we received from the sale of two container vessels that were classified as vessels held for sale as at June 30, 2020.

Net Cash Provided by / (Used in) Financing Activities

Net cash provided by financing activities was $204.2 million in the three-month period ended June 30, 2021, which mainly consisted of (a) $227.8 million net proceeds relating to our debt financing agreements (including proceeds we received from the issuance of €100.0 million unsecured bond on the Athens Exchange), (b) $9.4 million we paid for dividends to holders of our common stock for the first 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 January 15, 2021 to April 14, 2021.

Net cash used in financing activities was $104.7 million in the three-month period ended June 30, 2020, which mainly consisted of (a) $85.9 million net payments relating to our debt financing agreements, (b) $9.1 million we paid for dividends to holders of our common stock for the first 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 January 15, 2020 to April 14, 2020.

Six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020

During the six-month periods ended June 30, 2021 and 2020, we had an average of 67.1 and 60.1 vessels, respectively, in our fleet.

In the six-month period ended June 30, 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 and Porto Germeno with an aggregate TEU capacity of 45,331 and we sold the container vessels Halifax Express and Prosper with an aggregate TEU capacity of 6,394 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 Capital Management 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 six-month period ended June 30, 2021, we acquired all 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. 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 will not receive a profit as a result of the acquisition. Three of the dry bulk vessels that were part of the acquisition, the Builder, Pegasus and Adventure (with an aggregate DWT of 171,997), were delivered to us during the six-month period ended June 30, 2021.

In the six-month period ended June 30, 2020, we accepted delivery of the secondhand container vessel JPO Virgo with a TEU capacity of 4,258 and we sold the container vessel Neapolis with a TEU capacity of 1,645.

In the six-month periods ended June 30, 2021 and 2020, our fleet ownership days totaled 12,149 and 10,935 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)



(Expressed in millions of U.S. dollars,

Six-month period ended June 30,

Percentage

except percentages)

2020

2021

Change

Change

Voyage revenue

$

233.3

$

293.5

$

60.2

25.8

%

Voyage expenses

(4.1

)

(3.1

)

(1.0

)

(24.4

%)

Voyage expenses – related parties

(3.1

)

(4.3

)

1.2

38.7

%

Vessels’ operating expenses

(54.8

)

(69.6

)

14.8

27.0

%

General and administrative expenses

(3.8

)

(3.7

)

(0.1

)

(2.6

%)

Management fees – related parties

(10.5

)

(11.8

)

1.3

12.4

%

General and administrative expenses - non-cash component

(1.5

)

(3.2

)

1.7

113.3

%

Amortization of dry-docking and special survey costs

(4.5

)

(4.8

)

0.3

6.7

%

Depreciation

(55.7

)

(58.7

)

3.0

5.4

%

Gain on sale / disposal of vessels, net

-

1.4

1.4

n.m.

Loss on vessels held for sale

(79.2

)

-

(79.2

)

n.m.

Vessels’ impairment loss

(31.6

)

-

(31.6

)

n.m.

Foreign exchange gains / (losses)

(0.2

)

0.1

(0.3

)

n.m.

Interest income

1.2

1.5

0.3

25.0

%

Interest and finance costs

(35.4

)

(36.5

)

1.1

3.1

%

Fair value measurement of equity securities

-

51.1

51.1

n.m.

Income from equity method investments

8.2

5.0

(3.2

)

(39.0

%)

Other

0.4

2.9

2.5

n.m.

Loss on derivative instruments

(2.1

)

(1.0

)

(1.1

)

(52.4

%)

Net Income / (Loss)

$

(43.4

)

$

158.8


(Expressed in millions of U.S. dollars,

Six-month period ended June 30,

Percentage

except percentages)

2020

2021

Change

Change

Voyage revenue

$

233.3

$

293.5

$

60.2

25.8

%

Accrued charter revenue

7.7

2.1

(5.6

)

(72.7

%)

Amortization of time charter assumed

0.1

(0.3

)

(0.4

)

n.m.

Voyage revenue adjusted on a cash basis (2)

$

241.1

$

295.3

$

54.2

22.5

%


Vessels’ operational data

Six-month period ended June 30,

Percentage

2020

2021

Change

Change

Average number of vessels

60.1

67.1

7.0

11.6

%

Ownership days

10,935

12,149

1,214

11.1

%

Number of vessels under dry-docking

7

9

2


Segmental Financial Summary (1)

Six-month period ended June 30, 2021

Container vessels

Dry bulk
vessels

Other

Total

Voyage revenue

$

292.6

$

0.9

$

-

$

293.5

Voyage expenses

(3.0

)

(0.1

)

-

(3.1

)

Voyage expenses – related parties

(4.3

)

-

-

(4.3

)

Vessels’ operating expenses

(69.4

)

(0.2

)

-

(69.6

)

General and administrative expenses

(3.7

)

-

-

(3.7

)

Management fees – related parties

(11.8

)

-

-

(11.8

)

General and administrative expenses - non-cash component

(3.2

)

-

-

(3.2

)

Amortization of dry-docking and special survey costs

(4.8

)

-

-

(4.8

)

Depreciation

(58.6

)

(0.1

)

-

(58.7

)

Gain on sale / disposal of vessels

1.4

-

-

1.4

Foreign exchange gains

0.1

-

-

0.1

Interest income

1.5

-

-

1.5

Interest and finance costs

(36.5

)

-

-

(36.5

)

Fair value measurement of equity securities

-

-

51.1

51.1

Income from equity method investments

-

-

5.0

5.0

Other

2.9

-

-

2.9

Loss on derivative instruments

(1.0

)

-

-

(1.0

)

Net Income

$

102.2

$

0.5

$

56.1

$

158.8

(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 “Financial Summary” above for the reconciliation of Voyage revenue adjusted on a cash basis.

Voyage Revenue

Voyage revenue increased by 25.8%, or $60.2 million, to $293.5 million during the six-month period ended June 30, 2021, from $233.3 million during the six-month period ended June 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the second half of 2020, fifteen container vessels and three dry bulk vessels acquired during the first half of 2021, (ii) to decreased idle days of our fleet during the first half of 2021 compared to the first half of 2020, (iii) to increased charter rates in certain of our container vessels during the first half of 2021 compared to the first half of 2020; partly off-set by revenue not earned by five container vessels sold during the year ended December 31, 2020 and two container vessels sold during the first half of 2021.

Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”), increased by 22.5%, or $54.2 million, to $295.3 million during the six-month period ended June 30, 2021, from $241.1 million during the six-month period ended June 30, 2020. Accrued charter revenue for the six-month periods ended June 30, 2021 and 2020 was a positive amount of $2.1 million and $7.7 million, respectively.

Voyage Expenses

Voyage expenses were $3.1 million and $4.1 million for the six-month periods ended June 30, 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 $4.3 million and $3.1 million for the six-month periods ended June 30, 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 $0.6 million and $0.2 million, in the aggregate, for the six-month periods ended June 30, 2021 and 2020, respectively.

Vessels’ Operating Expenses

Vessels’ operating expenses, which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $69.6 million and $54.8 million during the six-month periods ended June 30, 2021 and 2020, respectively. Daily vessels’ operating expenses were $5,729 and $5,008 for the six-month periods ended June 30, 2021 and 2020, respectively. 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 $3.7 million and $3.8 million during the six-month periods ended June 30, 2021 and 2020, respectively, and both include $1.3 million paid to a related manager.

Management Fees – related parties

Management fees paid to our related party managers were $11.8 million and $10.5 million during the six-month periods ended June 30, 2021 and 2020, respectively.

General and Administrative Expenses - non-cash component

General and administrative expenses - non-cash component for the six-month period ended June 30, 2021 amounted to $3.2 million, representing the value of the shares issued to a related party manager on March 31, 2021 and on June 30, 2021. General and administrative expenses - non-cash component for the six-month period ended June 30, 2020 amounted to $1.5 million, representing the value of the shares issued to a related party manager on March 30, 2020 and June 30, 2020.

Amortization of Dry-Docking and Special Survey

Amortization of deferred dry-docking and special survey costs was $4.8 million and $4.5 million during the six-month periods ended June 30, 2021 and 2020, respectively. During the six-month period ended June 30, 2021, eight vessels underwent and completed their special survey and one vessel was in the process of completing its special survey. During the six-month period ended June 30, 2020, seven vessels underwent and completed their special survey.

Depreciation

Depreciation expense for the six-month periods ended June 30, 2021 and 2020 was $58.7 million and $55.7 million, respectively.

Gain on Sale / Disposal of Vessels, net

During the six-month period ended June 30, 2021, we recorded a net gain of $1.4 million from the sale of the container vessels Prosper and Halifax Express (asset held for sale as at December 31, 2020). During the six-month period ended June 30, 2020, we recorded a gain of $0.01 million from the sale of the container vessel Neapolis which was classified as asset held for sale as at December 31, 2019.

Loss on vessels held for sale

During the six-month period ended June 30, 2021, the container vessels Venetiko, Zim New York and Zim Shanghai were classified as vessels held for sale. No loss on vessels held for sale was recorded during the six-month period ended June 30, 2021 since each vessel’s estimated market value exceeded each vessel’s carrying value. During the six-month period ended June 30, 2020, we recorded a loss of $78.7 million on the container vessels Kokura, Kawasaki and Singapore Express that were classified as vessels held for sale as at June 30, 2020 and an additional loss of $0.5 million on the container vessel Zagora that was classified as vessel held for sale as at December 31, 2019, representing the expected loss from their sale during the next twelve-month period.

Vessels’ impairment loss

During the six-month period ended June 30, 2021 no impairment loss was recorded. During the six-month period ended June 30, 2020, we recorded an impairment loss in relation to five of our container vessels in the amount of $31.6 million, in the aggregate.

Interest Income

Interest income amounted to $1.5 million and $1.2 million for the six-month periods ended June 30, 2021 and 2020, respectively.

Interest and Finance Costs

Interest and finance costs were $36.5 million and $35.4 million during the six-month periods ended June 30, 2021 and 2020, respectively. The increase is mainly attributable to the increased average loan balances during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020; partly off-set by the decreased financing cost during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020.

Fair value measurement of equity securities

Fair value measurement of equity securities of $51.1 million for the six-month period ended June 30, 2021, represents the difference between the aggregate fair value of 1,221,800 ordinary shares of ZIM that we own as at June 30, 2021 of $54.9 million compared to the book value of these shares of $3.8 million 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.

Income from Equity Method Investments

During the six-month period ended June 30, 2021, we recorded an income from equity method investments of $5.0 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. 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 June 30, 2021, six companies are jointly owned with York (of which, five companies currently own container vessels). During the six-month period ended June 30, 2020, we recorded an income from equity method investments of $8.2 million relating to investments under the Framework Deed.

Loss on Derivative Instruments

The fair value of our ten interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of June 30, 2021 equates to the amount that would be paid by us or to us should those instruments be terminated. As of June 30, 2021, the fair value of these twelve interest rate derivative instruments, in aggregate, amounted to a liability of $11.7 million. The change in the fair value of the interest rate derivative instruments and cross currency rate 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 and is presented in the same income statement line item as the earnings effect of the hedged item while the change in the fair value of the interest rate derivatives representing hedge components excluded from the assessment of effectiveness are recognized currently in earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments. For the six-month period ended June 30, 2021, a loss of $1.0 million has been included in OCI and a loss of $0.2 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 six-month period ended June 30, 2021.

Cash Flows

Six-month periods ended June 30, 2021 and 2020

Condensed cash flows

Six-month period ended June 30,

(Expressed in millions of U.S. dollars)

2020

2021

Net Cash Provided by Operating Activities

$

139.2

$

175.2

Net Cash Provided by / (Used in) Investing Activities

$

1.6

$

(281.5

)

Net Cash Provided by / (Used in) Financing Activities

$

(135.5

)

$

263.3

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities for the six-month period ended June 30, 2021, increased by $36.0 million to $175.2 million, from $139.2 million for the six-month period ended June 30, 2020. The increase is mainly attributable to increased cash from operations of $54.2 million, to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of $8.6 million; partly off-set by increased payments for interest (including swap payments) of $1.4 million during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020 and by increased special survey costs of $2.4 million during the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020.

Net Cash Provided by / (Used in) Investing Activities

Net cash used in investing activities was $281.5 million in the six-month period ended June 30, 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, eight secondhand container vessels and one dry bulk vessel, (iii) advance payments for the acquisition of two secondhand container vessels and twelve secondhand dry bulk vessels and (iv) payments for upgrades for certain of our vessels; partly off-set by proceeds we received from the sale of two container vessels.

Net cash provided by investing activities was $1.6 million in the six-month period ended June 30, 2020, which mainly consisted of return of capital we received from nine entities jointly owned with York pursuant to the Framework Deed, the proceeds we received from the sale of one container vessel and advance payments we received from the sale of two container vessels that were classified as vessels held for sale as at June 30, 2020; partly off-set by payments for upgrades for certain of our container vessels and payment for the acquisition of one container secondhand vessel.

Net Cash Provided by / (Used in) Financing Activities

Net cash provided by financing activities was $263.3 million in the six-month period ended June 30, 2021, which mainly consisted of (a) $309.4 million net proceeds relating to our debt financing agreements (including proceeds we received from the issuance of €100.0 million unsecured bond on the Athens Exchange), (b) $18.6 million we paid for dividends to holders of our common stock for the fourth quarter of 2020 and the first quarter of 2021 and (c) $1.9 million we paid for dividends to holders of our Series B Preferred Stock, $4.2 million we paid for dividends to holders of our Series C Preferred Stock, $4.4 million we paid for dividends to holders of our Series D Preferred Stock and $5.1 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2020 to January 14, 2021 and January 15, 2021 to April 14, 2021.

Net cash used in financing activities was $135.5 million in the six-month period ended June 30, 2020, which mainly consisted of (a) $100.5 million net payments relating to our debt financing agreements, (b) $15.8 million we paid for dividends to holders of our common stock for the fourth quarter of 2019 and the first quarter of 2020 and (c) $1.9 million we paid for dividends to holders of our Series B Preferred Stock, $4.2 million we paid for dividends to holders of our Series C Preferred Stock, $4.4 million we paid for dividends to holders of our Series D Preferred Stock and $5.1 million we paid for dividends to holders of our Series E Preferred Stock for the period from October 15, 2019 to January 14, 2020 and January 15, 2020 to April 14, 2020.

Liquidity and Unencumbered Vessels

Cash and cash equivalents

As of June 30, 2021, we had a total cash liquidity of $348.9 million, consisting of cash, cash equivalents and restricted cash.

Debt-free vessels

As of July 28, 2021, the following vessels were free of debt.

Unencumbered Vessels
(Refer to fleet list for full details)

Vessel Name

Year
Built

TEU / DWT
Capacity

Containerships

ETOILE

2005

2,556

MICHIGAN

2008

1,300

ENSENADA (*)

2001

5,576

MONEMVASIA (*)

1998

2,472

ARKADIA (*)

2001

1,550

Dry Bulk Vessels

SEABIRD

2016

63,553

(*) Vessels acquired pursuant to the Framework Deed with York.

Risk Factor Update

The operation of dry bulk vessels entails certain unique operational risks.

The operation of certain ship types, such as dry bulk vessels, has certain unique risks. With a dry bulk vessel, the cargo itself and its interaction with the ship can be a risk factor. By their nature, dry bulk cargoes are often heavy, dense, easily shifted, and react badly to water exposure. In addition, dry bulk vessels are often subjected to battering treatment during unloading operations with grabs, jackhammers (to pry encrusted cargoes out of the hold), and small bulldozers. This treatment may cause damage to the vessel. Vessels damaged due to treatment during unloading procedures may be more susceptible to breach at sea. Furthermore, any defects or flaws in the design of a dry bulk vessel may contribute to vessel damage. Hull breaches in dry bulk vessels may lead to the flooding of the vessels holds. If a dry bulk vessel suffers flooding in its holds, the bulk cargo may become so dense and waterlogged that its pressure may buckle the vessel's bulkheads, leading to the loss of the vessel. If we are unable to adequately maintain our vessels, we may be unable to prevent these events.

Any of these circumstances or events could negatively impact our business, financial condition, results of operations and our ability to pay dividends, if any, in the future. In addition, the loss of any of our dry bulk vessels could harm our reputation as a safe and reliable vessel owner and operator.

Conference Call details:

On Wednesday, 28, 2021 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 August 4, 2021. 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: 10159093.

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 47 years of history in the international shipping industry and a fleet of 81 containerships, with a total capacity of approximately 581,000 TEU (including two secondhand vessels that we have agreed to acquire and two vessels that we have agreed to sell) and 37 dry bulk vessels with a total capacity of approximately 1,910,000 DWT (including 23 secondhand vessels that we have agreed to acquire). Five 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.

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”.

Company Contacts:

Gregory Zikos - Chief Financial Officer
Konstantinos Tsakalidis - Business Development

Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com

Fleet List

The tables below provide additional information, as of July 28, 2021, about our fleet of containerships, including the vessels that we have agreed to acquire, the vessels we have agreed to sell, 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

ZIM/MSC

2016

11,010

34,750/33,000

July 2031(3)

12

CAPE TAINARO

MSC

2017

11,010

33,000

April 2031

13

CAPE KORTIA

ZIM/MSC

2017

11,010

34,750/33,000

July 2031(3)

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(4)

17

COSCO NINGBO

COSCO/(*)

2006

9,469

30,900/72,700

April 2025(4)

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(5)

22

MSC AMALFI

MSC

2014

9,403

46,300

March 2027(6)

23

MSC AJACCIO

MSC

2014

9,403

46,300

February 2027(7)

24

MSC ATHENS(ii)

MSC

2013

8,827

45,300

January 2026(8)

25

MSC ATHOS(ii)

MSC

2013

8,827

45,300

February 2026(9)

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

1996

8,044

25,000

June 2023(10)

33

MAERSK KOTKA

Maersk

1996

8,044

25,000

June 2023(11)

34

MAERSK KOWLOON

Maersk

2005

7,471

16,000

June 2022

35

KURE

COSCO

1996

7,403

31,000

March 2023

36

MSC METHONI

MSC/Maersk

2003

6,724

29,000/46,500

May 2026(12)

37

PORTO CHELI

Maersk

2001

6,712

30,075

June 2026

38

YORK

Maersk

2000

6,648

21,250

August 2022

39

KOBE

RCL Feeder/ZIM

2000

6,648

14,500/45,000

July 2025(13)

40

SEALAND WASHINGTON

Maersk

2000

6,648

25,000

March 2022(14)

41

SEALAND MICHIGAN

Maersk

2000

6,648

25,000

March 2022(14)

42

SEALAND ILLINOIS

Maersk

2000

6,648

25,000

March 2022(14)

43

MAERSK KOLKATA

Maersk

2003

6,644

25,000

March 2022(14)

44

MAERSK KINGSTON

Maersk

2003

6,644

25,000

March 2022(14)

45

MAERSK KALAMATA

Maersk

2003

6,644

25,000

March 2022(14)

46

ARIES

ONE

2004

6,492

(*)

December 2022

47

ARGUS

ONE

2004

6,492

(*)

January 2023

48

VENETIKO(iii)

(*)

2003

5,928

(*)

August 2021

49

PORTO KAGIO

Maersk

2002

5,908

28,822

June 2026

50

GLEN CANYON

ONE

2006

5,642

(*)

January 2022

51

PORTO GERMENO

Maersk

2002

5,570

28,822

June 2026

52

ENSENADA(i), (iii)

(*)

2001

5,576

21,500

August 2021

53

ZIM NEW YORK

ZIM

2002

4,992

14,438

September 2021 (15)

54

ZIM SHANGHAI

ZIM

2002

4,992

14,438

September 2021(15)

55

LEONIDIO(ii)

Maersk

2014

4,957

14,200

December 2024

56

KYPARISSIA(ii)

Maersk

2014

4,957

14,200

November 2024

57

MEGALOPOLIS

Maersk

2013

4,957

13,500

July 2025

58

MARATHOPOLIS

Maersk

2013

4.957

13,500

July 2025

59

OAKLAND

Maersk

2000

4,890

24,500

March 2023

60

NORFOLK

Maersk

2009

4,259

30,000

May 2023

61

VULPECULA

OOCL

2010

4,258

22,700

February 2023

62

VOLANS

ZIM

2010

4,258

24,250

April 2024

63

VIRGO

Maersk

2009

4,258

30,200

February 2024

64

VELA

OOCL

2009

4,258

22,700

January 2023

65

ANDROUSA

Maersk

2010

4,256

22,750

May 2023

66

NEOKASTRO

(*)/CMA CGM

2011

4,178

(*)/ 39,000

January 2027(16)

67

ULSAN

Maersk

2002

4,132

34,730

January 2026(17)

68

POLAR ARGENTINA(i)(ii)

Maersk

2018

3,800

19,700

October 2024

69

POLAR BRASIL(i)(ii)

Maersk

2018

3,800

19,700

January 2025

70

LAKONIA

COSCO

2004

2,586

17,300

February 2022

71

SCORPIUS

Pool / Hapag Lloyd

2007

2,572

Pool participation/
17,750

January 2023(18)

72

ETOILE

(*)

2005

2,556

(*)

February 2023

73

AREOPOLIS

COSCO

2000

2,474

17,300

March 2022

74

MONEMVASIA(i)

Maersk

1998

2,472

9,250

November 2021

75

MESSINI

(*)

1997

2,458

18,000

January 2022

76

ARKADIA(i)

China Navigation

2001

1,550

21,500

May 2023

77

MICHIGAN

MSC

2008

1,300

18,700

September 2023(19)

78

TRADER

(*)

2008

1,300

(*)

November 2021

79

LUEBECK

MSC

2001

1,078

15,000

March 2024(20)


Containerships agreed to be acquired within 2021

Vessel Name

Vessel Capacity (TEU)

Year Built

Charterer

Agreed Daily Charter Rate (U.S. dollars)

Charter Tenor

1

COSCO FUKUYAMA (tbr. GIALOVA)

4,578

2009

ZIM

25,500

32 – 36 months from vessel’s delivery to the charterer

2

CO KOBE (tbr. DYROS)

4,578

2008

Maersk

22,750

24.5 – 27.5 months from vessel’s delivery to the charterer


(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 could expire.

(3)

Upon redelivery of each vessel from ZIM between August 2021 and October 2021, each vessel will commence a charter for a period of approximately 10 years, with MSC at a daily rate of $33,000. Until then the daily charter rate of Cape Akritas and Cape Kortia will be $34,750.

(4)

Upon redelivery of each vessel from COSCO between April 2022 and June 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.

(5)

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.

(6)

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.

(7)

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.

(8)

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.

(9)

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.

(10)

The daily rate of Maersk Kleven 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.

(11)

The daily rate of 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.

(12)

Upon redelivery of MSC Methoni from MSC (expected between September 2021 and November 2021), the vessel will commence a charter with Maersk at a daily rate of $46,500. Until then the daily charter rate will be $29,000.

(13)

Upon redelivery of Kobe from RCL Feeder (expected between August 2021 and November 2021), the vessel will commence a charter with ZIM at a daily rate of $45,000. Until then the daily charter rate will be $14,500.

(14)

The daily rate for Sealand Washington, Sealand Michigan, Sealand Illinois, Maersk Kolkata, Maersk Kingston 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.

(15)

The amounts in the table reflect the current charter terms, giving effect to our agreement with ZIM under its 2014 restructuring plan. Based on this agreement, we have been granted charter extensions and have been issued equity securities representing 1.2% of ZIM’s equity at that time and approximately $8.2 million in interest bearing notes maturing in 2023. In May 2020, the Company exercised its option to extend the charters of ZIM New York and ZIM Shanghai for a one year period at market rate plus $1,100 per day per vessel while the notes remain outstanding. The rate for this sixth optional year has been determined at $14,438 per day. In June 2021, ZIM fully repaid the interest bearing notes and thus the employment of the two vessels will be terminated under the terms of the 2014 restructuring agreement.

(16)

Upon redelivery of Neokastro from her current charterer (expected between December 2021 and February 2022), the vessel will commence a charter with CMA CGM at a daily rate of $39,000. Until then the daily charter rate will be $24,000.

(17)

This charter rate will be earned by Ulsan from October 1, 2021. Until then the daily charter rate will be $12,000.

(18)

Vessel will be participating in a Pool until August 31, 2021. From September 1, 2021, its charter rate will be $17,750 per day, as per its current employment with Hapag Lloyd.

(19)

This charter rate will be earned by Michigan from October 15, 2021. Until then the daily charter rate will be $5,800.

(20)

This charter rate will be earned by Luebeck from March 19, 2022. Until then the daily charter rate will be $7,750.

(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.

The tables below provide additional information, as of July 28, 2021, about our fleet of dry bulk vessels, including the vessels 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

BUILDER

2012

81,541

25,000

October 2021

2

SAUVAN

2010

79,699

30,250

October 2021

3

DAWN

2018

63,530

10,500

December 2021(4) (5)

4

SEABIRD

2016

63,553

Preparations for Drydock

5

ERACLE

2012

58,018

30,000

October 2021

6

PEGASUS

2011

56,726

26,150

September 2021

7

PEACE

2006

55,709

28,000

September 2021

8

PRIDE

2006

55,705

31,000

August 2021

9

INTERLINK VERITY

2012

37,163

100% participation to the BHSI38 performance

March 2022(3) (4)

10

ACUITY

2011

37,149

98.75% participation to the BHSI38 performance

September 2021(3) (4) (5)

11

BERNIS

2011

34,627

25,250

November 2021

12

MANZANILLO

2010

34,426

8,350

October 2021(4) (5)

13

ADVENTURE

2011

33,755

7,500

December 2021(4) (5)

14

ALLIANCE

2012

33,755

8,150

December 2021(4) (5)


Dry Bulk vessels agreed to be acquired within 2021

Vessel Name

Year Built

Capacity (DWT)

Current Daily Charter Rate(1) (U.S. dollars)

Expiration of Charter(2)

1

SPRING AEOLIAN (tbr. AEOLIAN)

2012

83,478

-

-

2

JAIGARH (tbr. GRENETA)

2010

82,166

-

-

3

PEDHOULAS FARMER (tbr. FARMER)

2012

81,541

-

-

4

IMPERIAL ROSE (tbr. ROSE)

2008

76,619

-

-

5

BULK TITAN (tbr. TITAN)

2009

58,090

-

-

6

STAR ATHENA (tbr. ATHENA)

2012

58,018

-

-

7

BULK URUGUAY (tbr. URUGUAY)

2011

57,937

-

-

8

BULK CURACAO (tbr. CURACAO)

2011

57,937

-

-

9

VIET THUAN 56-01 (tbr. THUNDER)

2009

57,334

-

-

10

SERENE SUSANNAH (tbr. SERENA)

2010

57,266

-

-

11

ATLANTIC MERIDA (tbr. MERIDA)

2012

56,670

12

LARA (tbr. CLARA)

2008

56,557

-

-

13

DARYA LAKSHMI (tbr. BERMONDI)

2009

55,469

-

-

14

INTERLINK COMITY (tbr. COMITY)

2010

37,302

100% participation to the BHSI38 performance

July 2022 (3) (4)

15

INTERLINK PARITY (tbr. PARITY)

2012

37,152

102% participation to the BSHI38 performance

December 2022(3)

16

INTERLINK EQUITY (tbr. EQUITY)

2013

37,071

-

-

17

N DISCOVERY (tbr. DISCOVERY)

2012

37,019

-

-

18

JIA TAI (tbr. TAIBO)

2011

35,112

-

-

19

MS CHARM (tbr. CHARM)

2010

32,527

91% participation to the BSHI38 performance

February 2022(3) (4)

20

ATLANTIC PROGRESS (tbr. PROGRESS)

2011

32,400

-

-

21

MING YUAN (tbr. MINER)

2010

32,300

-

-

22

KONSTANTINOS M (tbr. KONSTANTINOS)

2012

32,178

19,500

September 2021(4)

23

GREAT RESOURCE (tbr. RESOURCE)

2010

31,776

-

-


(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)

Gross daily charter rate linked to the Baltic Exchange Handysize Index.( “BHSI38’’).

(4)

Vessels acquired/agreed to be acquired, with a time charter agreed by the previous owners.

(5)

Latest redelivery date


Consolidated Statements of Income

Six-months ended June 30,

Three-months ended June 30,

(Expressed in thousands of U.S. dollars, except share and per share amounts)

2020

2021

2020

2021

Unaudited

REVENUES:

Voyage revenue

$

233,273

$

293,495

$

111,869

$

166,770

EXPENSES:

Voyage expenses

(4,071

)

(3,071

)

(1,553

)

(2,030

)

Voyage expenses – related parties

(3,062

)

(4,301

)

(1,475

)

(2,395

)

Vessels' operating expenses

(54,758

)

(69,600

)

(26,888

)

(37,821

)

General and administrative expenses

(3,758

)

(3,709

)

(2,356

)

(1,741

)

Management fees - related parties

(10,521

)

(11,786

)

(5,199

)

(6,310

)

General and administrative expenses - non-cash component

(1,508

)

(3,207

)

(832

)

(1,768

)

Amortization of dry-docking and special survey costs

(4,537

)

(4,847

)

(2,330

)

(2,520

)

Depreciation

(55,737

)

(58,726

)

(27,601

)

(31,630

)

Gain on sale / disposal of vessels, net

10

1,406

-

1,666

Loss on vessels held for sale

(79,197

)

-

(78,965

)

-

Vessels’ impairment loss

(31,577

)

-

(28,506

)

-

Foreign exchange gains / (losses)

(207

)

146

(65

)

(3

)

Operating income / (loss)

$

(15,650

)

$

135,800

$

(63,901

)

$

82,218

OTHER INCOME / (EXPENSES):

Interest income

$

1,087

$

1,489

$

440

$

1,122

Interest and finance costs

(35,367

)

(36,548

)

(16,900

)

(20,441

)

Income from equity method investments

8,241

4,951

4,077

960

Fair value measurement / Change in fair value of equity securities

-

51,094

-

25,157

Other

308

2,983

(120

)

1,495

Gain / (Loss) on derivative instruments

(2,066

)

(1,012

)

181

105

Total other expenses

$

(27,797

)

$

22,957

$

(12,322

)

$

8,398

Net Income / (Loss)

$

(43,447

)

$

158,757

$

(76,223

)

$

90,616

Earnings allocated to Preferred Stock

(15,461

)

(15,448

)

(7,768

)

(7,854

)

Gain on retirement of Preferred Stock

619

-

78

-

Net Income / (Loss) available to common stockholders

$

(58,289

)

$

143,309

$

(83,913

)

$

82,762

Earnings / (Losses) per common share, basic and diluted

$

(0.49

)

$

1.17

$

(0.70

)

$

0.67

Weighted average number of shares, basic and diluted

119,927,560

122,615,427

120,319,180

122,844,260


COSTAMARE INC.
Consolidated Balance Sheets

As of December 31,

As of June 30,

(Expressed in thousands of U.S. dollars)

2020

2021

ASSETS

(Audited)

(Unaudited)

CURRENT ASSETS:

Cash and cash equivalents

$

143,922

$

279,055

Restricted cash

4,998

6,980

Accounts receivable

8,249

7,063

Inventories

10,455

13,909

Due from related parties

1,623

535

Fair value of derivatives

460

-

Insurance claims receivable

883

804

Asset held for sale

12,416

61,389

Time charter assumed

191

198

Investment in equity securities

-

54,895

Prepayments and other

8,853

6,610

Total current assets

$

192,050

$

431,438

FIXED ASSETS, NET:

Right-of-use assets

$

199,098

$

195,233

Vessels and advances, net

2,450,510

3,169,135

Total fixed assets, net

$

2,649,608

$

3,364,368

NON-CURRENT ASSETS:

Equity method investments

$

78,227

$

27,154

Deferred charges, net

27,682

34,761

Accounts receivable, non-current

3,896

3,326

Restricted cash

42,976

62,896

Fair value of derivatives, non-current

-

70

Time charter assumed, non-current

839

767

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

3,418

Total assets

$

3,010,516

$

3,928,198

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Current portion of long-term debt

$

147,137

$

210,610

Accounts payable

7,582

14,360

Due to related parties

432

1,768

Finance lease liabilities

16,495

16,584

Accrued liabilities

17,621

20,142

Unearned revenue

11,893

11,824

Fair value of derivatives

3,440

8,686

Other current liabilities

2,374

56,818

Total current liabilities

$

206,974

$

340,792

NON-CURRENT LIABILITIES

Long-term debt, net of current portion

$

1,305,076

$

1,968,401

Finance lease liabilities, net of current portion

116,366

108,063

Fair value of derivatives, net of current portion

3,653

3,483

Unearned revenue, net of current portion

29,627

31,774

Total non-current liabilities

$

1,454,722

$

2,111,721

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY:

Preferred stock

$

-

$

-

Common stock

12

12

Additional paid-in capital

1,366,486

1,375,559

Retained earnings / (Accumulated deficit)

(9,721

)

109,019

Accumulated other comprehensive loss

(7,957

)

(8,905

)

Total stockholders’ equity

$

1,348,820

$

1,475,685

Total liabilities and stockholders’ equity

$

3,010,516

$

3,928,198



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