ATHENS, GREECE -- (Marketwire) -- 10/31/12 -- Capital Product Partners L.P. (the "Partnership") (NASDAQ: CPLP), an international owner of modern double-hull tankers, today released its financial results for the third quarter ended September 30, 2012.
The Partnership's net income for the quarter ended September 30, 2012, was $7.2 million. After taking into account the $3.3 million preferred interest in net income attributable to the unit holders of 15,555,554 Class B Convertible Preferred Units (the "Class B Units" and the "Class B Unitholders"), which were issued during the second quarter of 2012, the result was $0.06 net income per limited partnership unit, which is $0.07 higher than the $0.01 loss per unit from the previous quarter ended June 30, 2012, and $1.44 lower than the $1.50 net income per unit in the third quarter of 2011. Prior to taking into account the preferred interest in income attributable to the Class B Unitholders, the result per limited partnership unit for the quarter ended September 30, 2012, was net income of $0.10. The Partnership's reported net income for the third quarter of 2011 included a $65.9 million gain from bargain purchase related to the excess of the fair value of the Crude Carriers Corp. ("Crude Carriers") net assets acquired over their purchase price under the terms of the merger agreement between Crude Carriers and the Partnership completed on September 30, 2011.
Operating surplus for the quarter ended September 30, 2012, was $21.9 million, which is $5.0 million higher than the $16.9 million from the second quarter of 2012, and $11.6 million higher than the $10.3 million from the third quarter of 2011. The operating surplus adjusted for the payment of distributions to the Class B Unitholders was $18.6 million for the third quarter ended September 30, 2012. Operating surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Please refer to the section "Appendix A" at the end of the press release, for a reconciliation of this non-GAAP measure to net income.
Revenues for the third quarter of 2012 were $38.0 million, compared to $30.9 million in the third quarter of 2011. The Partnership's revenues mainly reflect the increased fleet size following the acquisition of Crude Carriers on September 30, 2011, and include $1.0 million in profit sharing revenues earned by the M/T Achilleas, as the crude tanker spot rates that our charterers earned on this vessel were at levels higher than the base rate it is fixed at. The profit sharing arrangements in the charters of a number of our crude vessels allow us to share the excess over the base rate on a 50/50 basis with our charterers, and are settled biannually.
Total expenses for the third quarter of 2012 were $26.9 million compared to $21.4 million in the third quarter of 2011, primarily due to the higher operating expenses incurred as a result of the higher number of vessels in our fleet following the acquisition of Crude Carriers. The vessel operating expenses for the third quarter of 2012 amounted to $11.3 million, including a $5.5 million charge by a subsidiary of our Sponsor, Capital Maritime & Trading Corp. ("Capital Maritime" or "CMTC"), for the commercial and technical management of our fleet under the terms of our management agreements, compared to $8.6 million in the third quarter of 2011. The total expenses for the third quarter of 2012 also include $12.0 million in depreciation, compared to $8.6 million in the third quarter of 2011. General and administrative expenses for the third quarter of 2012 amounted to $2.4 million, which includes a $1.1 million non-cash charge related to the Partnership's Omnibus Incentive Compensation Plans.
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