Business Context and Reporting Period
This Form 6-K filing by Costamare Inc. (NYSE: CMRE) is dated August 27, 2012. The report discloses new asset acquisitions and chartering arrangements executed by the Company, a leading owner and provider of containerships with a fleet of 58 vessels totaling approximately 330,000 TEU.
Key Financial Metrics and Transactions
- Acquisition: Purchase of the 1997-built container vessel Messini (2,458 TEU) for $6.8 million.
- Financing: The acquisition was entirely financed with equity.
- New Charter (Messini): Time charter with Evergreen for approximately 18 months at a daily rate of $8,100.
- New Charter (Konstantina): Time charter of the existing 1992-built vessel Konstantina (3,351 TEU) with Evergreen for approximately one year at a daily rate of $7,550.
- Revenue Impact: These charters account for 1.6% of contracted revenues for the remainder of 2012 and 4.2% for 2013.
Material Changes and Management Commentary
Management highlighted the execution of a strategy to capitalize on attractive asset values. The CFO noted that the purchase price for the Messini is close to its estimated scrap value, which allows the Company to generate healthy returns while eliminating residual value risk. Additionally, the Company fixed two vessels at favorable rates relative to previous fixtures and the current market environment, thereby reducing re-chartering risk for the coming years.
Outlook and Risks
The filing contains forward-looking statements regarding future results, which are subject to inherent uncertainties. Management expects the Messini to be delivered to charterers by September 23, 2012, and the Konstantina in October 2012. Investors are directed to the "Risk Factors" section of the Company's Annual Report on Form 20-F for a discussion of risks that could cause actual results to differ materially from anticipated results.
Key Facts for Investor Verification
- Verify the delivery dates of the Messini (expected Sept 23, 2012) and Konstantina (expected Oct 2012) to ensure revenue recognition timelines.
- Confirm the total equity capital deployed for the $6.8 million acquisition against the Company's current liquidity position.
- Monitor the performance of the new charters against the stated daily rates of $8,100 and $7,550.
- Review the Form 20-F for specific risk factors related to the container shipping market and Evergreen as a charterer.