Costamare Inc. · NYSE:CMRE
Costamare — Q2 2020 Earnings Presentation
16 slides from Costamare's earnings presentation, Jul 28, 2020
Slide 1: Second Quarter 2020 Financial Results Conference Call
Second Quarter 2020 Financial Results Conference Call July 28, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain “forward-looking statements” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). All statements, other than statements of historical facts, that address activities, events or developments that the
Slide 3: Highlights (1/4)
Highlights (1/4) Liquidity ▪ Liquidity of $220.7m(1). ▪ No meaningful debt maturities until 2024. ▪ Leverage(2) of 40% (as of June 30, 2020), calculated in accordance with relevant provisions of bank financing agreements. ▪ Never restructured any debt obligations or requested covenant waivers / debt
Slide 4: Highlights (2/4)
Highlights (2/4) Financial Performance ➢ 1H 2020 ▪ Adjusted Net Income available to common stockholders(1) of $64.3 million. ▪ Adjusted Earnings per Share(1) of $0.54 (54% increase vs 1H 2019). ▪ Net Loss available to common stockholders of $58.3 million (mainly due to one-off non-cash charges of $1
Slide 5: Highlights (3/4)
Highlights (3/4) Operational Performance ▪ Ownership Days 5,460. ▪ Q2 2020 Operating Expenses $26.9m. ▪ Q2 2020 Average Operating Expenses p.d.(1) $4,925. Vessel Deliveries ▪ Delivery of the 12,690 TEU containership YM Triumph, which commenced its ten-year charter with Yang Ming. Vessel disposals ▪
Slide 6: Highlights (4/4)
Highlights (4/4) New Charter Fixtures ▪ 24 new / extended charters since Q1 2020, in one of the most challenging and volatile environments. Containership Market ▪ Small signs of improvement over the past two months. ▪ Current orderbook at a low level of 9.3%(1) and expected to remain low. ▪ Total id
Slide 7: Q2 2020 Income Statement Snapshot
Q2 2020 Income Statement Snapshot Q2 2020 RESULTS Q2 2019 Q2 2020 % Change Ownership Days 5,460 5,460 – Average Number of Vessels 60.0 60.0 – Voyage Revenues 117,036 111,869 (4.4%) Net Interest and Finance Costs (*) 21,532 16,460 (23.6%) Adjusted Net Income Available to Common Stockholders(**) 26,21
Slide 8: Prudent Capital Structure
Prudent Capital Structure LEVERAGE RATIO(1) NET DEBT / ADJUSTED EBITDA(2)(3) 60% (' 000 US$) Q2 2020 55% 54% NET INCOME (76,223) Net Interest and Finance Costs 16,460 51% 50% Depreciation and Amortization 29,931 46% 45% 45% EBITDA(2)(3) (29,832) ADJUSTED EBITDA(2)(3) 85,786 43% 40% 41% 40% 12 month
Slide 9: High Quality and Stable Cash Flows
High Quality and Stable Cash Flows Revenue Contribution (All Vessels)(1)(2) Other ⚫ As of July 27, 2020, contracted revenues of approximately 1% $2.1Bn(1)(2) 1% 14% ⚫ TEU-weighted average remaining time charter duration for the fleet is about 3.5 years(1)(2) 15% 28% 10% 22% 24% Notes 1.Based on cont
Slide 10: Market Environment (1/2)
Market Environment (1/2) Charter Rates 12m Timecharter Rates ▪ Early signs of improvement for larger size vessels 35 000 (>4,000 TEUs). 30 000 25 000 20 000 15 000 10 000 5 000 0 8,500 5,600 4,000 2,500 1,700 TEU capacity Source: Alphaliner – July 2020 Box Rates SCFI Index 1,300 ▪ Box rates have inc
Slide 11: Market Environment (2/2)
Market Environment (2/2) Idle Fleet % of Fleet 12% 10% ▪ The inactive container fleet has decreased to 7.9%. 8% 7.9% ▪ Several carriers have started to unwind blank sailings. 6% 4% 2% 0% Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Source: Alphaliner – July 2020 Orderbook Or
Slide 12: Q&A
Q&A 12
Slide 13: Appendix – I
Appendix – I Net Income to Adj. Net Income Available to Common Stockholders and Adj. EPS Reconciliations– EBITDA and Adjusted EBITDA Definitions Three-month period ended June 30, Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share (Expressed in thousands of U.S
Slide 14: Appendix – II
Appendix – II EBITDA to Adjusted EBITDA Reconciliation for Q2 2020 and 12 Month Trailing EBITDA (Q3 2019 to Q2 2020) (' 000 US$) Q2 2020 12M Trailing EBITDA (' 000 US$) (Q3 2019 - Q2 2020) NET INCOME (76,223) NET INCOME 28,416 Interest and Finance Costs 16,900 Interest and Finance Costs 79,058 Inter
Slide 15: Appendix III – ESG status at Costamare (1/2)
Appendix III – ESG status at Costamare (1/2) INTERNAL GOVERNANCE REGULATORY FRAMEWORK ACTIVITIES IMO • SOLAS • Compliance with mandatory regulations & standards • MARPOL • Installation of Exhaust Gas Cleaning Systems (ECGS), fuel strategy including use of Low Sulphur SIP, shore power supply • IMO Ba
Slide 16: Appendix III – ESG status at Costamare (2/2)
Appendix III – ESG status at Costamare (2/2) INTERNAL GOVERNANCE REGULATORY FRAMEWORK ACTIVITIES The ISM Code Compliance ILO Core Conventions Compliance Maritime Labor Convention Compliance Social Quality Safety Management System • Risk Management Compliance EU GDPR Awareness, monitoring, protection