Capital Product Partners L.P. Announces First Quarter 2013 Financial Results
The Partnership's net income for the quarter ended
After taking into account the
Operating surplus for the quarter ended
Revenues for the first quarter of 2013 were
Total expenses for the first quarter of 2013 were
In the first quarter of 2013, we reported a gain from bargain purchase of
Total other expense, net for the first quarter of 2013 amounted to
As of
As of
Issuance of 9.1 million Class B Convertible Preferred Units and Acquisition of Two Container Vessels
The Partnership announced on
The Partnership used the net proceeds from the issuance of the Class B Preferred Units together with approximately
Fleet Developments
The M/T Agamemnon II (51,238 dwt, built 2008 by STX Offshore & Shipbuilding Co.,
We reached an agreement with Overseas Shipholding Group Inc. ("OSG") and certain of OSG's subsidiaries regarding the long term bareboat charters of three of our product tanker vessels.
On
CPLP has agreed to enter into new charters with OSG on substantially the same terms as the prior charters but at a bareboat rate of
Market Commentary
Overall, product tanker spot earnings in the first quarter of 2013 continued their positive momentum as average earnings in the first quarter of 2013 reached the highest level since the fourth quarter of 2008. Demand for product tankers was particularly strong in the transatlantic market, due to increased arbitrage opportunities in the Atlantic basin as well as stronger demand from
The product tanker period market remained active during the course of the first quarter of 2013, as more charterers sought to take period coverage and at slightly higher time charter rates compared to the previous quarter.
On the supply side, the product tanker order book experienced substantial slippage during 2012, as approximately 57% of the expected MR and handy size tanker newbuildings were not delivered on schedule. Slippage continued into the first quarter of 2013 at approximately 33%. Analysts expect that net fleet growth for product tankers for 2013 will be in the region of 3.3%, while overall demand for product tankers for the year is estimated at 4.6 %. We believe the improving demand and supply balance of the product tanker market should continue to positively affect spot and period charter rates going forward.
The Suezmax spot market remained at seasonally low levels as increased vessel supply continued to put downward pressure on rates, despite increased cargo activity towards the end of this quarter.
Slippage for the Suezmax tanker order book as of the end of
Quarterly Common and Class B Unit Cash Distribution
On
In addition, on
Management Commentary
Mr.
"We are very pleased to have acquired two 5,023 TEU container vessels with long term period charters, partly financed by the proceeds from our 9.1 million Class B Convertible Preferred Unit issuance. We believe that this transaction enhances the cash flow visibility to our shareholders, further diversifies our revenue stream with the addition of HMM to our charterers, and will further underpin our existing distribution level and allow for potential distribution growth ahead. Additionally, we came to an agreement with OSG on the three bareboat charters, while reserving the Partnership's rights for future claims."
Conference Call and Webcast
Today,
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (
A replay of the conference call will be available until
Slides and Audio Webcast:
There will also be a simultaneous live webcast over the Internet, through the
Forward-Looking Statements:
The statements in this press release that are not historical facts, including our expectations regarding employment of our vessels, redelivery dates and charter rates, fleet growth and demand, newbuilding deliveries and slippage as well as market and charter rate expectations and expectations regarding our quarterly distributions, ability to pursue growth opportunities and grow our distributions and annual distribution guidance may be forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new
information, a change in our views or expectations, to conform them to actual results or otherwise. We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no prediction or statement about the performance of our units.
About
For more information about the Partnership, please visit our website: www.capitalpplp.com.
CPLP-F
Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||
(In thousands of United States Dollars, except number of units and earnings per unit) | |||||||||
For the three months period ended |
|||||||||
2013 | 2012 | ||||||||
Revenues | $ | 26,511 | $ | 23,659 | |||||
Revenues - related party | 13,454 | 16,180 | |||||||
Total Revenues | 39,965 | 39,839 | |||||||
Expenses: | |||||||||
Voyage expenses | 1,772 | 2,822 | |||||||
Voyage expenses - related party | 80 | 140 | |||||||
Vessel operating expenses - related party | 4,297 | 7,290 | |||||||
Vessel operating expenses | 8,299 | 4,791 | |||||||
General and administrative expenses | 2,601 | 2,288 | |||||||
Gain on sale of vessel to third parties | - | (956 | ) | ||||||
Depreciation | 11,867 | 12,195 | |||||||
Operating income | 11,049 | 11,269 | |||||||
Non operating income (expense),net: | |||||||||
Gain from bargain purchase | 17,475 | - | |||||||
Other income (expense), net: | |||||||||
Interest expense and finance cost | (3,715 | ) | (8,829 | ) | |||||
Gain on interest rate swap agreement | 4 | 640 | |||||||
Interest and other income | 200 | 145 | |||||||
Total other expense, net | (3,511 | ) | (8,044 | ) | |||||
Net income | $ | 25,013 | $ | 3,225 | |||||
Preferred unit holders' interest in Partnership's net income | 5,270 | - | |||||||
395 | 65 | ||||||||
Common unit holders' interest in Partnership's net income | 19,348 | 3,160 | |||||||
Net income per: | |||||||||
• Common units (basic and diluted) | 0.28 | 0.05 | |||||||
Weighted-average units outstanding: | |||||||||
• Common units (basic and diluted) | 68,383,911 | 68,185,404 | |||||||
Comprehensive income: | |||||||||
Partnership's net income | $ | 25,013 | $ | 3,225 | |||||
Other Comprehensive income: | |||||||||
Unrealized gain on derivative instruments | 462 | 4,172 | |||||||
Comprehensive income | $ | 25,475 | $ | 7,397 | |||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands of United States Dollars, except number of units and earnings per unit) | ||||||
As of 2013 |
As of 2012 |
|||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 35,942 | $ | 43,551 | ||
Trade accounts receivable | 4,533 | 2,346 | ||||
Prepayments and other assets | 1,317 | 1,259 | ||||
Above market acquired charters | 2,481 | - | ||||
Inventories | 3,110 | 2,333 | ||||
Total current assets | 47,383 | 49,489 | ||||
Fixed assets | ||||||
Vessels, net | 1,055,683 | 959,550 | ||||
Total fixed assets | 1,055,683 | 959,550 | ||||
Other non-current assets | ||||||
Trade accounts receivable, net | 848 | 848 | ||||
Above market acquired charters | 82,328 | 47,720 | ||||
Deferred charges, net | 1,945 | 2,021 | ||||
Restricted cash | 13,500 | 10,500 | ||||
Total non-current assets | 1,154,304 | 1,020,639 | ||||
Total assets | $ | 1,201,687 | $ | 1,070,128 | ||
Liabilities and Partners' Capital | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $ | 5,400 | $ | - | ||
Trade accounts payable | 5,958 | 4,776 | ||||
Due to related parties | 17,320 | 17,447 | ||||
Derivative instruments | - | 467 | ||||
Accrued liabilities | 3,804 | 2,781 | ||||
Deferred revenue | 7,176 | 10,302 | ||||
Total current liabilities | 39,658 | 35,773 | ||||
Long-term liabilities | ||||||
Long-term debt | 506,965 | 458,365 | ||||
Deferred revenue | 1,863 | 2,162 | ||||
Total long-term liabilities | 508,828 | 460,527 | ||||
Total liabilities | 548,486 | 496,300 | ||||
Commitments and contingencies | ||||||
Partners' capital | 653,201 | 573,828 | ||||
Total liabilities and partners' capital | $ | 1,201,687 | $ | 1,070,128 | ||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands of United States Dollars) | |||||||
For the three-month period ended |
|||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income | 25,013 | 3,225 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Vessel depreciation | 11,867 | 12,195 | |||||
Gain from bargain purchase | (17,475 | ) | |||||
Amortization of deferred charges | 46 | 158 | |||||
Gain on interest rate swap agreements | (4 | ) | (640 | ) | |||
Gain on sale of vessel to third parties | - | (956 | ) | ||||
Amortization of above market acquired charters | 2,386 | 1,955 | |||||
Equity compensation expense | 1,169 | 1,027 | |||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable | (2,187 | ) | (1,140 | ) | |||
Prepayments and other assets | (58 | ) | 390 | ||||
Inventories | (777 | ) | 2,394 | ||||
Trade accounts payable | 1,014 | 1,849 | |||||
Due to related parties | (127 | ) | (202 | ) | |||
Accrued liabilities | 399 | (364 | ) | ||||
Deferred revenue | (3,384 | ) | (18 | ) | |||
Net cash provided by operating activities | 17,882 | 19,873 | |||||
Cash flows from investing activities: | |||||||
Vessel acquisitions and improvements | (130,000 | ) | (19 | ) | |||
(Additions)/Reduction to restricted cash | (3,000 | ) | 250 | ||||
Net proceeds from sale of vessel to third parties | - | 9,821 | |||||
Net cash (used in) / provided by investing activities | (133,000 | ) | 10,052 | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of Partnership units | 75,075 | - | |||||
Expenses paid for issuance of Partnership units | (1,772 | ) | - | ||||
Proceeds from issuance of long-term debt | 54,000 | - | |||||
Loan issuance costs | (11 | ) | (33 | ) | |||
Payments of long-term debt | - | (10,000 | ) | ||||
Dividends paid | (19,783 | ) | (16,458 | ) | |||
Net cash provided by / (used in) financing activities | 107,509 | (26,491 | ) | ||||
Net (decrease) / increase in cash and cash equivalents | (7,609 | ) | 3,434 | ||||
Cash and cash equivalents at beginning of period | 43,551 | 53,370 | |||||
Cash and cash equivalents at end of period | 35,942 | 56,804 | |||||
Supplemental cash flow information | |||||||
Cash paid for interest | 3,461 | $ | 8,548 | ||||
Non-Cash Investing and Financing Activities | |||||||
Private placement costs relating to Class B preferred units included in liabilities | 791 | - | |||||
Appendix A - Reconciliation of Non-GAAP Financial Measure |
(In thousands of U.S. dollars) |
Description of Non-GAAP Financial Measure - Operating Surplus
Operating Surplus represents net income adjusted for non-cash items such as depreciation and amortization expense, the gain from bargain purchase and deferred revenue. Operating Surplus is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is a non-GAAP financial measure and should not be considered as an alternative to net income or any other indicator of the Partnership's performance required by accounting principles generally accepted in
Reconciliation of Non-GAAP Financial Measure - Operating Surplus | For the three-month period ended |
|||
Net income | $ | 25,013 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 13,119 | |||
Deferred revenue | 1,910 | |||
Gain from bargain purchase | (17,475 | ) | ||
OPERATING SURPLUS PRIOR TO CLASS B PREFERRED UNITS DISTRIBUTION | 22,567 | |||
Class B preferred units distribution | (5,270 | ) | ||
ADJUSTED OPERATING SURPLUS | 17,297 | |||
Increase in recommended reserves | (839 | ) | ||
AVAILABLE CASH | $ | 16,458 | ||
Contact Details:
CEO and CFO
+30 (210) 4584 950
E-mail: i.lazaridis@capitalpplp.com
Investor Relations / Media
Tel. +1-212-661-7566
E-mail: cplp@capitallink.com
Finance Director
+30 (210) 4584 950
j.kalogiratos@capitalpplp.com
Source:
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