Business Context and Reporting Period
This Form 6-K filing by Capital Product Partners L.P. (the "Partnership"), dated February 22, 2010, discloses the audited balance sheets of its general partner, Capital GP L.L.C. (the "Company"), for the periods ending December 31, 2009, 2008, and 2007. Capital GP L.L.C. is a wholly-owned subsidiary of Capital Maritime and Trading Corp (CMTC) and manages the Partnership's day-to-day operations. The Company holds a 2% general partner interest in the Partnership and all incentive distribution rights.
Key Financial Metrics
The filing provides balance sheet data for Capital GP L.L.C. only; it does not contain income statements, cash flow statements, or operating metrics (revenue, profit, margins) for the Partnership or the General Partner. All figures are in thousands of U.S. dollars.
| Item | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 |
|---|---|---|---|
| Total Assets | $3,204 | $15,914 | $3,239 |
| Current Assets | $64 | $2 | $1 |
| Investment in Partnership | $3,140 | $15,912 | $3,238 |
| Total Liabilities | $64 | $0 | $0 |
| Member's Equity | $3,140 | $15,914 | $3,239 |
| Due (from) / to Member | ($10,696) | $2,871 | $3,014 |
Note: The "Due (from) / to Member" line item represents a receivable from the parent company (CMTC) in 2009 and a payable to the parent in 2008 and 2007.
Material Changes Versus Prior Period
- Significant Decline in Total Assets: Total assets decreased from $15.9 million in 2008 to $3.2 million in 2009. This reduction is primarily driven by a decrease in the "Investment in Capital Product Partners L.P." from $15.9 million to $3.1 million.
- Reversal of Related Party Balance: The balance with the member (CMTC) shifted from a payable of $2.9 million in 2008 to a receivable of $10.7 million in 2009.
- Driver of Change: The increase in the receivable from the member in 2009 resulted from the receipt of incentive distribution rights payments following the Partnership's declaration of a cash distribution of $1.05 per unit for the fourth quarter of 2008. These distributions were collected by CMTC on behalf of the Company.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future operations, or specific risk factors beyond standard audit disclosures. The document is strictly a submission of historical audited financial statements for the General Partner.
Unusual Items: The significant fluctuation in the "Investment in Capital Product Partners L.P." and the "Due from Member" accounts is directly tied to the timing of incentive distribution rights payments and the equity method of accounting used for the Partnership investment.
Investor Verification Checklist
- Scope of Data: Verify that this filing contains only the balance sheet of the General Partner (Capital GP L.L.C.), not the operating results of the Partnership itself.
- Equity Method Accounting: Confirm how the Partnership's performance impacts the General Partner's "Investment" line item, as this is the primary asset.
- Related Party Transactions: Review the nature of the $10.7 million receivable from CMTC to understand cash flow availability for the General Partner.
- Incentive Distribution Rights: Assess the impact of the $1.05 per unit distribution on the General Partner's equity position.