Follow-On Offering
•On October 19, 2012, the Company completed a follow-on public offering of 7.0 million shares of its common stock at $14.00 per share. The gross proceeds from the offering before the underwriting discount and other offering expenses were $98.0 million. Members of the Konstantakopoulos family, who in the aggregate own a majority of the common stock of the Company, purchased 700,000 shares in the offering. We plan to use the net proceeds of this offering for capital expenditures, including vessel acquisitions, and for other general corporate purposes, which may include repayments of indebtedness.
Dividend Announcements
•On October 5, 2012, the Company declared a dividend for the third quarter ended September 30, 2012, of $0.27 per share, payable on November 6, 2012 to stockholders of record at the close of trading of the Company's common stock on the New York Stock Exchange on October 22, 2012. This will be the Company's eighth consecutive quarterly dividend since it commenced trading on the New York Stock Exchange.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"During the third quarter of the year, the Company continued to deliver positive results.
"In August we accepted delivery of two second hand vessels, which were acquired through distressed sales. Both vessels have been subsequently chartered for periods ranging between 6 and 18 months. As part of our fleet renewal process we have sold for demolition a 1,068 TEU 1991-built ship.
"In a challenging market we have fixed all the vessels that were coming out of charter during the remainder of the year; at the same time we have minimized our rechartering risk. The charters for the vessels opening in 2013 and 2014 account for approximately 4% and 3% of our 2013 and 2014 contracted revenues respectively.
"On October 5th we declared a dividend for the third quarter of $ 0.27 per share. Consistent with our dividend policy, we continue to offer an attractive dividend, which we consider to be sustainable based on the size of our contracted cash flows, the quality of our charterers and the prudent amortization of our debt.
"Finally on October 19th, we closed the offering of 7 million shares of common stock that was priced at $ 14 per share. Members of the founding family have purchased 700,000 shares in the offering. In today's environment the Company has a strong cash position coupled with low leverage and unencumbered assets.
"We believe that going forward we are well positioned to pursue new business opportunities in a market environment that favors well capitalized players."
Financial Summary Nine-month period ended Three-month period September 30, ended September 30, ----------------------- -----------------------(Expressed in thousands of U.S. dollars, except share and per share data): 2011 2012 2011 2012 ----------- ----------- ----------- ----------- (Unaudited) -----------------------------------------------Voyage revenue $ 280,165 $ 290,962 $ 99,886 $ 94,886Accrued charter revenue (1) $ 23,218 $ 3,909 $ 7,776 $ 2,924Voyage revenue adjusted on a cash basis (2) $ 303,383 $ 294,871 $ 107,662 $ 97,810Adjusted EBITDA (3) $ 199,998 $ 190,587 $ 72,891 $ 62,475Adjusted Net Income (3) $ 80,168 $ 67,721 $ 30,914 $ 20,947Weighted Average number of shares 60,300,000 65,582,847 60,300,000 67,800,000Adjusted Earnings per share (3) $ 1.33 $ 1.03 $ 0.51 $ 0.31EBITDA (3) $ 181,340 $ 181,064 $ 59,368 $ 54,045Net Income $ 61,510 $ 58,198 $ 17,391 $ 12,517Weighted Average number of shares 60,300,000 65,582,847 60,300,000 67,800,000Earnings per share $ 1.02 $ 0.89 $ 0.29 $ 0.18
