The decrease of 17.8%, or $3.0 million, in adjusted net income for the three months ended March 31, 2013 compared to the three months ended March 31, 2012, was mainly the result of the softening of the charter market during the last year that led to the cold lay-up of 7 vessels up to the end of 2012 and to the lower re-chartering of certain vessels that currently run at operating break-even levels while they had a positive contribution to operating income during the first quarter of 2012. The above was partially offset by the new vessel additions to our fleet (all under long-term charters) over the course of the last year that were accretive both to operating income and the bottom line. As of March 31, 2013, we only had 2 vessels on cold lay-up as we have sold, or have agreed to sell, 4 vessels and have re-activated 1 further vessel.
On a non-adjusted basis our net income was $13.4 million, or $0.12 per share, for the three months ended March 31, 2013, compared to net income of $9.3 million, or $0.09 per share, for the three months ended March 31, 2012.
On March 27, 2013, we entered into an agreement with the lenders under the HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank credit facility. The agreement provides us the option to sell, for cash, up to 9 mortgaged vessels (the Henry, the Pride, the Independence, the Honour, the Elbe, the Hope, the Lotus, the Kalamata and the Komodo), with the sale proceeds less sale commissions from such vessels' sales to be deposited in a restricted cash account for use in financing the acquisition of new containership vessels no later than December 31, 2013. Any funds remaining in this restricted cash account after that date will be applied towards prepayment of the respective credit facility. During the first quarter of 2013, we concluded the sales of the Henry, the Pride and the Independence; accordingly, an amount of $18.8 million, representing the gross sale proceeds less commissions from the sale of the Henry, the Pride and the Independence, was recorded as non-current restricted cash on March 31, 2013. We have also entered into an agreement on April 2, 2013 to sell the Honour.
Operating Revenues
Operating revenues increased 8.9%, or $11.9 million, to $146.1 million in the three months ended March 31, 2013, from $134.2 million in the three months ended March 31, 2012. The increase was primarily attributable to the addition of three vessels to our fleet, as follows:
Vessel Name Vessel Size (TEU) Date Delivered----------------------- ----------------------- -----------------------Hyundai Smart 13,100 May 3, 2012Hyundai Speed 13,100 June 7, 2012Hyundai Ambition 13,100 June 29, 2012
These additions to our fleet contributed revenues of $16.3 million during the three months ended March 31, 2013 (270 operating days in total).
Furthermore, operating revenues for the three months ended March 31, 2013 reflect:
•$9.4 million of incremental revenues in the three months ended March 31, 2013 compared to the three months ended March 31, 2012, related to one 8,530 TEU containership (the CMA CGM Melisande, which was added to our fleet on February 28, 2012), and two 13,100 TEU containerships (the Hyundai Together and the Hyundai Tenacity, which were added to our fleet on February 16, 2012 and March 8, 2012, respectively).
•$1.1 million decrease in revenues in the three months ended March 31, 2013 compared to the three months ended March 31, 2012, related to one 2,130 TEU containership, the Montreal, which was sold on April 27, 2012.
•$12.7 million decrease in revenues in the three months ended March 31, 2013 compared to the three months ended March 31, 2012. This was mainly attributable to an increase in off-hire days of 290 days, to 593 days in the three months ended March 31, 2013, from 303 days in the three months ended March 31, 2012, re-chartering of certain vessels during 2012 at lower charter rates compared to what these vessels were earning in the three months ended March 31, 2012, as well as reduced revenue of our fleet in the three months ended March 31, 2013 compared to the three months ended March 31, 2012 due to the one additional operating day in February 2012 compared to February 2013.
