Net cash flows provided by operating activities for the nine-month period ended September 30, 2012 decreased by $11.0 million to $123.4 million, compared to $134.4 million for the nine-month period ended September 30, 2011. The decrease was primarily attributable to (a) the decreased cash from operations of $8.5 million deriving from escalating charter rates, (b) the increased dry-docking payments of $1.9 million and (c) increased payments for interest (including swap payments) of $3.1 million; partly offset by 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 $4.2 million.
Net Cash Used in Investing Activities
Net cash used in investing activities was $162.0 million in the nine-month period ended September 30, 2012, which consisted of (a) $109.0 million advance payments for the construction and purchase of seven newbuild vessels, (b) $73.7 million in payments for the acquisition of five secondhand vessels and (c) $20.8 million we received from the sale of four vessels.
Net cash used in investing activities was $256.6 million in the nine-month period ended September 30, 2011, which consists of (a) $147.3 million advance payments and other capitalized costs for the construction and purchase of ten newbuild vessels, (b) $130.2 million in payments for the acquisition of nine second-hand vessels, (c) $6.0 million in advance payment for the acquisition of one second hand vessel delivered to us in the fourth quarter of 2011, (d) $19.0 million we received for the sale of three vessels (e) $6.1 million we received from the sale of governmental bonds and (f) $1.8 million in aggregate we received as advances for the sale of two vessels delivered to their new owners in the fourth quarter of 2011.
Net Cash Provided By Financing Activities
Net cash provided by financing activities was $157.7 million in the nine-month period ended September 30, 2012, which mainly consisted of (a) $129.3 million of indebtedness that we repaid, (b) $241.2 million we drew down from five of our credit facilities, (c) $52.9 million we paid for dividends to our stockholders for the fourth quarter of the year ended December 31, 2011, the first quarter of the year 2012 and the second quarter of the year 2012 and (d) $100.6 million net proceeds we received from our follow-on offering in March 2012, net of underwriting discounts and expenses incurred in the offering.
Net cash provided by financing activities was $33.1 million in the nine-month period ended September 30, 2011, which mainly consists of (a) $83.9 million of indebtedness that we repaid, (b) $169.0 million we drew down from four of our credit facilities and (c) $45.2 million, in aggregate, we paid for dividends to our stockholders for the fourth quarter of the year 2010, the first quarter of the year 2011 and the second quarter of the year 2011.
Liquidity and Capital Expenditures
Cash and cash equivalents
As of September 30, 2012, we had a total cash liquidity of $264.5 million, consisting of cash, cash equivalents and restricted cash.
Debt-free vessels
As of October 22, 2012, the following vessels were free of debt.
Unencumbered Vessels in the water (refer to fleet list in page 17 for full charter details) Year TEUVessel Name Built Capacity--------------------------------------------------------------NAVARINO 2010 8,531AKRITAS 1987 3,152MSC CHALLENGER 1986 2,633MESSINI 1997 2,458
