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ATHENS, GREECE -- (Marketwire) -- 01/31/13 -- Capital Product Partners L.P. (the "Partnership" or "CPLP") (NASDAQ: CPLP), an international owner of modern tanker, dry bulk and container vessels today released its financial results for the fourth quarter ended December 31, 2012.

The Partnership's net loss for the quarter ended December 31, 2012, was $35.0 million, including an impairment charge of $43.2 million (the "Impairment Charge"); excluding the Impairment Charge a net income of $8.2 million would have been reported. The Impairment Charge, which is a non cash item, represents the difference between the carrying values and the fair market values of the M/T 'Alexander the Great' and the M/T 'Achilleas' on the date they were sold by CPLP to our Sponsor, Capital Maritime & Trading Corp ("Capital Maritime" or "CMTC") in exchange for the M/V 'Archimidis' and the M/V 'Agamemnon', respectively, which was effected on December 22, 2012 and announced on January 7, 2013.

After taking into account the $3.3 million preferred interest in net income attributable to the holders of 15,555,554 Class B Convertible Preferred Units issued during the second quarter of 2012 (the "Class B Units" and the "Class B Unitholders"), the result was a $0.55 net loss per limited partnership unit, which is $0.61 lower than the $0.06 net income per unit from the previous quarter ended September 30, 2012, and $0.57 lower than the $0.02 net income per unit in the fourth quarter of 2011. If the reductions in income resulting from the preferred interest in income attributable to the Class B Unitholders and the Impairment Charge were excluded, the result per limited partnership unit for the quarter ended December 31, 2012, would have been a net income of $0.12, an improvement to the $0.02 net income per unit in the fourth quarter of 2011.

Operating surplus for the quarter ended December 31, 2012, was $22.5 million, which is $0.6 million higher than the $21.9 million from the third quarter of 2012, and $6.7 million higher than the $15.8 million from the fourth quarter of 2011. The operating surplus adjusted for the payment of distributions to the Class B Unitholders was $19.2 million for the quarter ended December 31, 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 loss.

Revenues for the fourth quarter of 2012 were $38.3 million, including $0.3 million in profit sharing revenues, compared to $44.0 million in the fourth quarter of 2011. The Partnership's higher revenues in the fourth quarter of 2011 reflect primarily the fact that following the acquisition of Crude Carriers on September 30, 2011 a number of the Partnership's vessels were trading under voyage charters earning voyage income of $9.7 million, compared to $0.0 voyage income in the fourth quarter of 2012.

Total expenses for the fourth quarter of 2012 were $69.5 million compared to $35.3 million in the fourth quarter of 2011, primarily driven by an increase in expense resulting from the Impairment Charge and a decrease in voyage expenses, as the Partnership's vessels were trading under period charters during the fourth quarter of 2012. The vessel operating expenses for the fourth quarter of 2012 amounted to $11.2 million compared to $11.9 million in the fourth quarter of 2011, including a $4.7 million charge by a subsidiary of our Sponsor, Capital Maritime, for the commercial and technical management of our fleet under the terms of our management agreements, compared to $7.8 million in the fourth quarter of 2011. The total expenses for the fourth quarter of 2012 also include $12.0 million in depreciation, compared to $12.3 million in the fourth quarter of 2011. General and administrative expenses for the fourth quarter of 2012 amounted to $2.3 million, which include a $0.8 million non-cash charge related to the Partnership's Omnibus Incentive Compensation Plans.