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

Wednesday, 28. July 2021 12:47

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 dataThree-month period ended June 30,   Percentage
2020 2021 Change Change
        
Average number of vessels60.0 71.5 11.5 19.2%
Ownership days5,460 6,509 1,049 19.2%
Number of vessels under dry-docking1 6 5  

 


Segmental Financial Summary (1)

 
Three-month period ended June 30, 2021
 Container vesselsDry bulk vesselsOtherTotal
     
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 dataSix-month period ended June 30, Percentage
2020 2021ChangeChange
      
Average number of vessels60.1 67.17.011.6%
Ownership days10,935 12,1491,21411.1%
Number of vessels under dry-docking7 92 

 

Segmental Financial Summary (1)

   
Six-month period ended June 30, 2021
 Container vesselsDry 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 NameChartererYear BuiltCapacity (TEU)Current Daily Charter Rate(1) (U.S. dollars)Expiration of Charter(2)
1TRITON(ii)Evergreen201614,424(*)March 2026
2TITAN(ii)Evergreen201614,424(*)April 2026
3TALOS(ii)Evergreen201614,424(*)July 2026
4TAURUS(ii)Evergreen201614,424(*)August 2026
5THESEUS(ii)Evergreen201614,424(*)August 2026
6YM TRIUMPH(ii)Yang Ming202012,690(*)May 2030
7YM TRUTH(ii)Yang Ming202012,690(*)May 2030
8YM TOTALITY(ii)Yang Ming202012,690(*)July 2030
9YM TARGET(ii)Yang Ming202112,690(*)November 2030
10YM TIPTOP(ii)Yang Ming202112,690(*)March 2031
11CAPE AKRITASZIM/MSC201611,01034,750/33,000July 2031(3)
12CAPE TAINAROMSC201711,01033,000April 2031
13CAPE KORTIAZIM/MSC201711,01034,750/33,000July 2031(3)
14CAPE SOUNIOMSC201711,01033,000April 2031
15CAPE ARTEMISIOHapag Lloyd201711,01036,650March 2025
16COSCO GUANGZHOUCOSCO/(*)20069,46930,900/72,700April 2025(4)
17COSCO NINGBOCOSCO/(*)20069,46930,900/72,700April 2025(4)
18YANTIANCOSCO20069,46939,600February 2024
19COSCO HELLASCOSCO20069,46939,600February 2024
20BEIJINGCOSCO20069,46939,600March 2024
21MSC AZOVMSC20149,40346,300December 2026(5)
22MSC AMALFIMSC20149,40346,300March 2027(6)
23MSC AJACCIOMSC20149,40346,300February 2027(7)
24MSC ATHENS(ii)MSC20138,82745,300January 2026(8)
25MSC ATHOS(ii)MSC20138,82745,300February 2026(9)
26VALORHapag Lloyd20138,82732,400April 2025
27VALUEHapag Lloyd20138,82732,400April 2025
28VALIANTHapag Lloyd20138,82732,400June 2025
29VALENCEHapag Lloyd20138,82732,400July 2025
30VANTAGEHapag Lloyd20138,82732,400September 2025
31NAVARINOMSC20108,53131,000January 2025
32MAERSK KLEVENMaersk19968,04425,000June 2023(10)
33MAERSK KOTKAMaersk19968,04425,000June 2023(11)
34MAERSK KOWLOONMaersk20057,47116,000June 2022
35KURECOSCO19967,40331,000March 2023
36MSC METHONIMSC/Maersk20036,72429,000/46,500May 2026(12)
37PORTO CHELIMaersk20016,71230,075June 2026
38YORKMaersk20006,64821,250August 2022
39KOBERCL Feeder/ZIM20006,64814,500/45,000July 2025(13)
40SEALAND WASHINGTONMaersk20006,64825,000March 2022(14)
41SEALAND MICHIGANMaersk20006,64825,000March 2022(14)
42SEALAND ILLINOISMaersk20006,64825,000March 2022(14)
43MAERSK KOLKATAMaersk20036,64425,000March 2022(14)
44MAERSK KINGSTONMaersk20036,64425,000March 2022(14)
45MAERSK KALAMATAMaersk20036,64425,000March 2022(14)
46ARIESONE20046,492(*)December 2022
47ARGUSONE20046,492(*)January 2023
48VENETIKO(iii)(*)20035,928(*)August 2021
49PORTO KAGIOMaersk20025,90828,822June 2026
50GLEN CANYONONE20065,642(*)January 2022
51PORTO GERMENOMaersk20025,57028,822June 2026
52ENSENADA(i), (iii) (*)20015,57621,500August 2021
53ZIM NEW YORKZIM20024,99214,438September 2021 (15)
54ZIM SHANGHAIZIM20024,99214,438September 2021(15)
55LEONIDIO(ii)Maersk20144,95714,200December 2024
56KYPARISSIA(ii)Maersk20144,95714,200November 2024
57MEGALOPOLISMaersk20134,95713,500July 2025
58MARATHOPOLISMaersk20134.95713,500July 2025
59OAKLANDMaersk20004,89024,500March 2023
60NORFOLKMaersk20094,25930,000May 2023
61VULPECULAOOCL20104,25822,700February 2023
62VOLANSZIM20104,25824,250April 2024
63VIRGOMaersk20094,25830,200February 2024
64VELAOOCL20094,25822,700January 2023
65ANDROUSAMaersk20104,25622,750May 2023
66NEOKASTRO(*)/CMA CGM20114,178(*)/ 39,000January 2027(16)
67ULSANMaersk20024,13234,730January 2026(17)
68POLAR ARGENTINA(i)(ii)Maersk20183,80019,700October 2024
69POLAR BRASIL(i)(ii)Maersk20183,80019,700January 2025
70LAKONIACOSCO20042,58617,300February 2022
71SCORPIUSPool / Hapag Lloyd20072,572Pool participation/
17,750
January 2023(18)
72ETOILE(*)20052,556(*)February 2023
73AREOPOLISCOSCO20002,47417,300March 2022
74MONEMVASIA(i)Maersk19982,4729,250November 2021
75MESSINI(*)19972,45818,000January 2022
76ARKADIA(i)China Navigation20011,55021,500May 2023
77MICHIGANMSC20081,30018,700September 2023(19)
78TRADER(*)20081,300(*)November 2021
79LUEBECKMSC20011,07815,000March 2024(20)


Containerships agreed to be acquired within 2021

 Vessel NameVessel Capacity (TEU)Year BuiltChartererAgreed Daily Charter Rate (U.S. dollars)Charter Tenor
1COSCO FUKUYAMA (tbr. GIALOVA)4,5782009ZIM25,50032 – 36 months from vessel’s delivery to the charterer
2CO KOBE (tbr. DYROS)4,5782008Maersk22,75024.5 – 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 NameYear BuiltCapacity (DWT)Current Daily Charter Rate(1) (U.S. dollars)Expiration of Charter(2)
1BUILDER201281,54125,000October 2021
2SAUVAN201079,69930,250October 2021
3DAWN201863,53010,500December 2021(4) (5)
4SEABIRD201663,553Preparations for Drydock
5ERACLE201258,01830,000October 2021
6PEGASUS201156,72626,150September 2021
7PEACE200655,70928,000September 2021
8PRIDE200655,70531,000August 2021
9INTERLINK VERITY201237,163100% participation to the BHSI38 performanceMarch 2022(3) (4)
10ACUITY201137,14998.75% participation to the BHSI38 performanceSeptember 2021(3) (4) (5)
11BERNIS201134,62725,250November 2021
12MANZANILLO201034,4268,350October 2021(4) (5)
13ADVENTURE201133,7557,500December 2021(4) (5)
14ALLIANCE201233,7558,150December 2021(4) (5)


Dry Bulk vessels agreed to be acquired within 2021

 Vessel NameYear BuiltCapacity (DWT)Current Daily Charter Rate(1) (U.S. dollars)Expiration of Charter(2)
1SPRING AEOLIAN (tbr. AEOLIAN)201283,478--
2JAIGARH (tbr. GRENETA)201082,166--
3PEDHOULAS FARMER (tbr. FARMER)201281,541--
4IMPERIAL ROSE (tbr. ROSE)200876,619--
5BULK TITAN (tbr. TITAN)200958,090--
6STAR ATHENA (tbr. ATHENA)201258,018--
7BULK URUGUAY (tbr. URUGUAY)201157,937--
8BULK CURACAO (tbr. CURACAO)201157,937--
9VIET THUAN 56-01 (tbr. THUNDER)200957,334--
10SERENE SUSANNAH (tbr. SERENA)201057,266--
11ATLANTIC MERIDA (tbr. MERIDA)201256,670  
12LARA (tbr. CLARA)200856,557--
13DARYA LAKSHMI (tbr. BERMONDI)200955,469--
14INTERLINK COMITY (tbr. COMITY)201037,302100% participation to the BHSI38 performanceJuly 2022 (3) (4)
15INTERLINK PARITY (tbr. PARITY)201237,152102% participation to the BSHI38 performanceDecember 2022(3)
16INTERLINK EQUITY (tbr. EQUITY)201337,071--
17N DISCOVERY (tbr. DISCOVERY)201237,019--
18JIA TAI (tbr. TAIBO)201135,112--
19MS CHARM (tbr. CHARM)201032,52791% participation to the BSHI38 performanceFebruary 2022(3) (4)
20ATLANTIC PROGRESS (tbr. PROGRESS)201132,400--
21MING YUAN (tbr. MINER)201032,300--
22KONSTANTINOS M (tbr. KONSTANTINOS)201232,17819,500September 2021(4)
23GREAT RESOURCE (tbr. RESOURCE)201031,776--


(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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