HispanicBusiness

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased 30.1%, or $8.9 million, to $38.5 million in the three months ended December 31, 2012, from $29.6 million in the three months ended December 31, 2011. The increase in depreciation expense was due to the increased average number of vessels in our fleet (with higher cost base) during the three months ended December 31, 2012 compared to the same period of 2011.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased 58.3%, or $0.7 million, to $1.9 million in the three months ended December 31, 2012, from $1.2 million in the three months ended December 31, 2011. The increase reflects increased dry-docking and special survey costs incurred within the year and amortized during the three months ended December 31, 2012 compared to the same period of 2011.

General and Administrative Expenses
General and administrative expenses decreased 25.7%, or $1.8 million, to $5.2 million in the three months ended December 31, 2012, from $7.0 million in the same period of 2011. The decrease was mainly the result of a non-cash stock based compensation expense of $2.1 million recorded in the fourth quarter of 2011 compared to $0.1 million in the fourth quarter of 2012. Furthermore, fees to our Manager increased by $0.4 million in the three months ended December 31, 2012 compared to the same period of 2011, due to the increase in the average number of vessels in our fleet.

Other Operating Expenses
Other Operating Expenses includes Voyage Expenses

Voyage Expenses
Voyage expenses increased by $0.6 million, to $3.5 million in the three months ended December 31, 2012, from $2.9 million in the three months ended December 31, 2011. The increase was mainly the result of increased commissions to our Manager, due to the increase in the average number of vessels in our fleet and the increase in the commission on gross charter hires to our Manager, to 1.0% from 0.75%, effective January 1, 2012.

Interest Expense and Interest Income
Interest expense increased by 45.6%, or $7.3 million, to $23.3 million in the three months ended December 31, 2012, from $16.0 million in the three months ended December 31, 2011. The change in interest expense was due to the increase in our average debt by $420.4 million, to $3,402.8 million in the three months ended December 31, 2012, from $2,982.4 million in the three months ended December 31, 2011. Furthermore, the financing of our newbuilding program resulted in $3.2 million of interest being capitalized, rather than such interest being recognized as an expense, for the three months ended December 31, 2011 compared to nil interest being capitalized for the three months ended December 31, 2012, following the completion of our newbuilding program in June 2012.

Interest income was $0.4 million in the three months ended December 31, 2012 compared to $0.3 million in the three months ended December 31, 2011.

Other finance costs, net
Other finance costs, net, increased by $1.4 million, to $5.1 million in the three months ended December 31, 2012, from $3.7 million in the three months ended December 31, 2011. This increase was mainly due to the $0.7 million increase in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities), as well as increased accrued finance fees of $0.5 million (which accrete in our Statement of Income over the term of the respective facilities) in the three months ended December 31, 2012 compared to the three months ended December 31, 2011.