Costamare Inc. · NYSE:CMRE
Costamare — Q3 2020 Earnings Presentation
22 slides from Costamare's earnings presentation, Oct 28, 2020
Slide 1: Third Quarter 2020 Financial Results Conference Call
Third Quarter 2020 Financial Results Conference Call October 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: Company Snapshot
Company Snapshot Strong support by sponsor family – Aligned interests Long track record of 60% ownership, having ca 45+ years reinvested $92MM in the Steady management Company to date through the DRIP and ownership; Uninterrupted dividend payments No transformative or other related- since going publ
Slide 4: Profitable Performance Throughout the Business Cycles
Profitable Performance Throughout the Business Cycles $m 600 120 500 100 400 80 Index Value 300 60 200 40 100 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (e)(3) Notes 1. Adjusted Net Income is a non-GAAP measure. See Appendix I for a definition and reconciliation to the n
Slide 5: Highlights (1/3)
Highlights (1/3) Financial Performance Q3 2020 ► Adjusted Net Income available to common stockholders(1) of $26.7m. ► Adjusted Earnings per Share(1) of $0.22. 9M ended September 30, 2020 ► Adjusted Net Income available to common stockholders(1) of $91.0m. ► Adjusted Earnings per Share(1) of $0.76. L
Slide 6: Highlights (2/3)
Highlights (2/3) Fleet Renewal Acquisitions ► JPO Scorpius (2007-built, 2,572 TEUs). Average Age 12 yrs ► One 2006-built, 5,600 TEU containership(1). Average Size 4,124 TEUs ► One 2011-built, 4,200 TEU containership(2). Sales ► Zagora (1995-built, 1,162 TEUs). Average Age 23 yrs ► Singapore Express
Slide 7: Highlights (3/3)
Highlights (3/3) New Charter Fixtures ► 13 new / extended charters since Q2 2020. ► 14 vessels coming off charter over the next 6 months(1). Containership Market ► Significant improvement of time charter rates since Q2 2020 (∼100% increase)(2). ► Current orderbook at 8% of existing fleet. ► Idle fle
Slide 8: Q3 2020 Income Statement Snapshot
Q3 2020 Income Statement Snapshot Q3 2020 RESULTS Q3 2019 Q3 2020 % Change Ownership Days 5,520 5,478 -0.8% Average Number of Vessels 60.0 59.5 -0.8% Voyage Revenues 123,631 107,903 -12.7% (*) Net Interest and Finance Costs 23,200 15,708 -32.3% Adjusted Net Income Available to Common Stockholders(**
Slide 9: Prudent Capital Structure
Prudent Capital Structure LEVERAGE RATIO (1) NET DEBT / ADJUSTED EBITDA (2) 60% (‘ 000 US$) Q3 2020 54% 55% NET INCOME 25,249 51% Net Interest and Finance Costs 15,708 50% 46% 45% Depreciation and Amortization 28,109 45% EBITDA(2) 69,066 41% 42% 40% 43% ADJUSTED EBITDA(2) 78,598 39% 35% 345,340 12 m
Slide 10: High Quality and Stable Cash Flows
High Quality and Stable Cash Flows Others ► As of October 27, 2020, contracted revenues 1% 2% of approximately $2.1Bn(1)(2) ► TEU-weighted average remaining time charter 15% duration for the fleet is about 3.5 years(1)(2) 28% 10% Revenue Contribution (All Vessels)(1)(2) 21% Notes 23% 1. As of Octobe
Slide 11: Contracted Revenue by Vessel Size
Contracted Revenue by Vessel Size $m 1,000 911 ► 53% of our contracted revenues from vessels 900 >10,000 TEUs. 800 ► 36% of our contracted revenues from vessels 700 ranging 7,500 to 10,000 TEUs. 600 500 428 343 400 316 300 200 93 100 0 2020 2021 2022 2023 2024 - 12,000 - 15,000 10,000 - 12,000 7,500
Slide 12: Market Environment (1/2)
Market Environment (1/2) Charter Rates 12m Timecharter Rates 35,000 ► Significant improvement in charter rates across 30,000 containerships of all sizes. 25,000 20,000 ► Average increase since June 2020 close to 100%(1). 15,000 ► Charter rates on average(1) at higher level than in the 10,000 beginni
Slide 13: Market Environment (2/2)
Market Environment (2/2) Idle Fleet / Total Fleet 12% ► Significant decrease of the inactive container fleet to 10% 1.8% (from 7.9% in July 2020). 8% ► Adjusting for idle vessels due to scrubber retrofits, the 6% idle fleet level drops further. 4% 2% 1.8% 0% Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16
Slide 14: Thank You! Q&A
Thank You! Q&A 14
Slide 15: Appendix I – Net Income to Adj. Net Income Reconciliation
Appendix Ι – Net Income to Adj. Net Income Reconciliation Expressed in thousands of U.S. dollars, Three-month period ended September 30, Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income / (loss) after earnings allocated to preferred stoc
Slide 16: Appendix II – EBITDA to Adj. EBITDA Reconciliation - 12M Trailing EBITDA
Appendix ΙI – EBITDA to Adj. EBITDA Reconciliation - 12M Trailing EBITDA (' 000 US$) Q3 2020 12M Trailing EBITDA (' 000 US$) (Q4 2019 - Q3 2020) NET INCOME 25,249 NET INCOME 17,689 Interest and Finance Costs 16,085 Interest and Finance Costs 71,117 Interest Income (377) Interest Income (2,301) Depre
Slide 17: Appendix III – ESG status at Costamare (1/2) Environmental
Appendix III – ESG status at Costamare (1/2) Environmental Internal Governance Regulatory Framework Activities IMO • Compliance with mandatory regulations & standards • SOLAS • Installation of Exhaust Gas Cleaning Systems (“ECGS”), fuel • MARPOL strategy including use of Low Sulphur SIP, shore power
Slide 18: Appendix III – ESG status at Costamare (2/2) Social Governance
Appendix III – ESG status at Costamare (2/2) Social Internal Governance Regulatory Framework Activities The ISM Code Compliance ILO Core Conventions Compliance Quality Safety Management System Maritime Labor Convention Compliance • Risk Management EU GDPR Compliance Cybersecurity Compliance with IMO
Slide 19: Appendix IV – Operating Fleet Charter Status (1/4)
Appendix IV – Operating Fleet Charter Status (1/4) Charterer Age Vessels Recent Delivery YM Totality Recent Delivery YM Truth Recent Delivery YM Triumph 12,000 – 15,000 TEUs 4 Theseus 4 Taurus 8x Vessels 4 Talos 4 Titan 4 Triton 3 Cape Artemisio 3 Cape Kortia 10,000 – 12,000 TEUs 4 Cape Akritas 5x V
Slide 20: Appendix IV – Operating Fleet Charter Status (2/4)
Appendix IV – Operating Fleet Charter Status (2/4) Charterer Age Vessels 6 MSC Amalfi 6 MSC Ajaccio 6 MSC Azov 7 MSC Athos 7,500 – 10,000 TEUs 7 MSC Athens 7 Vantage 18x Vessels 7 Valence 7 Valiant 7 Value 7 Valor 14 Cosco Ningbo 14 Cosco Guangzhou 24 Maersk Kotka 24 Maersk Kleven 10 Navarino 14 Cos
Slide 21: Appendix IV – Operating Fleet Charter Status (3/4)
Appendix IV – Operating Fleet Charter Status (3/4) Charterer Age Vessels 20 York 15 Maersk Kowloon 17 Maersk Kalamata 5,000 – 7,500 TEUs 17 Maersk Kingston 13x Vessels 17 Maersk Kolkata 20 Sealand Illinois 20 Sealand Michigan 20 Sealand Washington 17 MSC Methoni 20 Kobe Confidential 17 Venetiko Conf
Slide 22: Appendix IV – Operating Fleet Charter Status (4/4)
Appendix IV – Operating Fleet Charter Status (4/4) Charterer Age Vessels 7 Marathopolis 7 Megalopolis 2 Polar Brasil 6 Leonidio 6 Kyparisia 2 Polar Argentina 1,000 – 5,000 TEUs 22 Monemvasia 18 Zim Shanghai 26x Vessels 18 Zim New York 18 Ulsan 24 Prosper Confidential 23 Messini 11 Virgo 19 Luebeck C