Costamare Inc. reported unaudited financial results for the fourth quarter and year ended December 31, 2019.
Net Income increased by 82% to $35.9 million for the three months ended December 31, 2019 (“Q4 2019”) compared to $19.7 million for the three months ended December 31, 2018 (“Q4 2018”). Earnings per Share available to common stockholders increased by 118% to $0.24 in Q4 2019 compared to $0.11 in Q4 2018.
Adjusted Net Income available to common stockholders(1) increased by 189% to $38.4 million in Q4 2019 compared to $13.3 million in Q4 2018. Adjusted Earnings per Share(1) available to common stockholders increased by 167% to $0.32 in Q4 2019 compared to $0.12 in Q4 2018.
Voyage Revenues increased by 17% to $124.5 million in Q4 2019 compared to $106.2 million in Q4 2018.
Continued its fleet renewal. More specifically, the Company:
Acquired the below four containerships:
Vela (2009-built, 4,258 TEU capacity)
JPO Virgo (2009-built, 4,258 TEU capacity)
Vulpecula (2010-built, 4,258 TEU capacity)
Volans (2010-built, 4,258 TEU capacity)
Sold the below four containerships:
Sierra II (1991-built, 2,023 TEU capacity)
Namibia II (1991-built, 2,023 TEU capacity)
Reunion (1992-built, 2,024 TEU capacity)
Neapolis (2000-built, 1,645 TEU capacity) / Sale is expected to be concluded in January 2020
Arranged financing agreements for four 2017-built, 11,010 TEU capacity containerships with leading European and U.S. financial institutions for an aggregate amount of up to $265 million.
Declared dividend of $0.10 per share on its common stock and dividends on all four classes of its preferred stock.
(1) Adjusted Net Income available to common stockholders and Adjusted Earnings per Share 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. Fleet Renewal
Vessel Acquisitions
In December 2019, we acquired three 4,258 TEU capacity sister containerships (2010-built Vulpecula, 2010-built Volans and 2009-built Vela).
In January 2020, we acquired the 2009-built, 4,258 TEU capacity containership JPO Virgo.
We acquired all four vessels using cash in hand and we are currently in advanced discussions with a leading European financial institution for their financing.
II. Vessel Disposals
In October 2019, we sold the 1991-built, 2,023 TEU capacity containership Sierra II.
In November 2019, we sold the 1992-built, 2,024 TEU capacity containership Reunion.
In December 2019, we sold the 1991-built, 2,023 TEU capacity containership Namibia II.
In January 2020, we agreed to sell the 2000-built, 1,645 TEU containership Neapolis. The sale is expected to be concluded by the end of January 2020.
B. New Financing Agreements
We have entered into four separate loan agreements with leading European and U.S. financial institutions for a total amount of up to $265 million. The loan proceeds have been used for the refinancing of the existing indebtedness of four 2017-built, 11,010 TEU containerships (acquired under our JV with York Capital Management) and for general corporate purposes. The new facilities will be repayable over 5 years.
C. Dividend announcements
On January 3, 2020, we declared a dividend for the quarter ended December 31, 2019, of $0.10 per share on our common stock, payable on February 5, 2020, to stockholders of record of common stock as of January 21, 2020.
On January 3, 2020, 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 January 15, 2020 to holders of record as of January 14, 2020.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the fourth quarter and the year, net income and earnings per share increased substantially boosted by higher charter rates and the addition of new ships.
As part of our fleet renewal program, we acquired four panamax vessels with an average age of about 11 years during the quarter and disposed of an equal number of ships with an average age of 27 years.
During the year larger vessels enjoyed a rising charter market and today there is limited supply available in the post -panamax sizes.
We have 18 post -panamax ships coming off charter over the next twelve months, which positions us favorably, should market momentum continue.”