Capital Product Partners L.P. Announces Fourth Quarter 2010 Financial Results
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the fourth quarter of 2010 were
Total operating expenses for the fourth quarter of 2010 were
Net interest expense and finance cost for the fourth quarter of 2010
amounted to
As of
Market Commentary
Overall, average product tanker spot earnings for the fourth quarter continued to improve, when compared to the fourth quarter of 2009, as the world economy recovery boosted demand for oil products.
Longer period charter rates remained robust, relative to the product tanker spot market, reflecting owners' and charterers' positive expectations for product tanker demand going forward. The product tanker orderbook experienced substantial delays and cancellations, which is expected to continue into 2011. As a result, the current product tanker orderbook is considered amongst the most attractive in the shipping industry.
The Suezmax market remained soft compared to the same quarter last year, as tonnage availability in most trading areas absorbed the increased demand.
Fleet Developments
The M/T Amore Mio II (2001
Following the rechartering of the M/T Amore Mio II, 69% of the fleet total days for 2011 are secured under period charter coverage.
Quarterly Cash Distribution
On
The total distributions of
Management Commentary
Mr.
Mr. Lazaridis continued: "We will continue to closely monitor key industry factors, including changes in oil product demand, oil refinery utilization rates, the availability of shipping finance, as well as further delays and cancellations that could reduce the number of new tanker vessel deliveries, in order to assess a further market recovery for 2011 and beyond. We will continue to monitor market developments and explore further accretive acquisitions, and as a result we will revisit our annual distribution guidance."
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 (from the US), 0(800) 953-0329
(from the
A replay of the conference call will be available until
Slides and audio webcast:
The slide presentation accompanying the conference call will be available on the Partnership's website at www.capitalpplp.com. An audio webcast of the call will also be accessible on the website. The relevant links will be found in the Investor Relations section of the website.
Forward-Looking Statements:
The statements in this press release that are not historical facts, including our expectations regarding developments in the markets, our expected charter coverage ratio for 2011 and expectations regarding our quarterly distribution 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 common units.
About
For more information about the Partnership, please visit our website: www.capitalpplp.com.
CPLP-F
Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Income (Note 1) (In thousands of United States Dollars, except number of units and earnings per unit) For the three-month period For the years ended ended December 31, December 31, 2010 2009 2010 2009 ---------- ---------- ---------- ---------- Revenues $ 24,859 $ 32,512 $ 113,562 $ 134,519 Revenues - related party 4,146 - 11,030 - ---------- ---------- ---------- ---------- Total Revenues 29,005 32,512 124,592 134,519 ---------- ---------- ---------- ---------- Expenses: Voyage expenses 1,170 810 7,009 3,993 Vessel operating expenses - related party 7,940 8,420 30,261 30,830 Vessel operating expenses - 499 1,034 2,204 General and administrative expenses 1,270 632 3,506 2,876 Vessel depreciation 8,116 7,697 31,464 30,685 ---------- ---------- ---------- ---------- Operating income 10,509 14,454 51,318 63,931 ---------- ---------- ---------- ---------- Other income (expense), net: Interest expense and finance cost (8,331) (8,462) (33,259) (32,675) Interest and other income 212 270 860 1,460 ---------- ---------- ---------- ---------- Total other (expense), net (8,119) (8,192) (32,399) (31,215) ---------- ---------- ---------- ---------- Net income 2,390 6,262 18,919 32,716 ---------- ---------- ---------- ---------- Less: Net income attributable to CMTC operations - (986) (983) (3,491) ---------- ---------- ---------- ---------- Partnership's net income $ 2,390 $ 5,276 $ 17,936 $ 29,225 ========== ========== ========== ========== General Partner's interest in Partnership's net income $ 48 $ 106 $ 359 $ 584 Limited Partners' interest in Partnership's net income $ 2,342 $ 5,170 $ 17,577 $ 28,641 Net income per unit: -- Common units(basic and diluted) 0.06 0.21 0.54 1.15 -- Subordinated units (basic and diluted) - - - 1.17 -- Total units(basic and diluted) 0.06 0.21 0.54 1.15 ---------- ---------- ---------- ---------- Weighted-average units outstanding: -- Common units (basic and diluted) 37,150,983 24,817,151 32,437,314 23,755,663 -- Subordinated units (basic and diluted) - - - 1,061,488 -- Total units(basic and diluted) 37,150,983 24,817,151 32,437,314 24,817,151Capital Product Partners L.P. Unaudited Condensed Consolidated Balance Sheets (Note 1) (In thousands of United States Dollars) December 31, December 31, 2010 2009 ------------ ------------ Assets Current assets Cash and cash equivalents $ 32,471 $ 3,552 Short-term investments - 30,390 Trade accounts receivable 2,305 1,217 Due from related party 2 13,365 Inventory 83 466 Prepayments and other assets 278 584 ------------ ------------ Total current assets 35,139 49,574 ------------ ------------ Fixed assets Vessels, net 707,339 703,707 ------------ ------------ Total fixed assets 707,339 703,707 ------------ ------------ Other non-current assets Deferred charges, net 2,462 3,147 Above market acquired bare-boat charter 8,062 - Restricted cash 5,250 4,500 ------------ ------------ Total non-current assets 723,113 711,354 ------------ ------------ Total assets $ 758,252 $ 760,928 ------------ ------------ Liabilities and stockholders' equity / partners' capital Current liabilities Current portion of long-term debt $ - $ - Current portion of related party long-term debt - 4,412 Trade accounts payable 526 778 Due to related parties 4,544 4,939 Accrued liabilities 898 2,470 Deferred revenue 3,207 3,456 ------------ ------------ Total current liabilities 9,175 16,055 ------------ ------------ Long-term liabilities Long-term debt 474,000 474,000 Long-term related party debt - 43,528 Deferred revenue 2,812 2,062 Derivative instruments 32,505 36,931 ------------ ------------ Total long-term liabilities 509,317 556,521 ------------ ------------ Total liabilities 518,492 572,576 ------------ ------------ Commitments and contingencies ------------ ------------ Stockholders' equity - 31,224 Partners' capital 239,760 157,128 ------------ ------------ Total liabilities and stockholders' equity / partners' capital $ 758,252 $ 760,928 ------------ ------------Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Cash Flows (Note 1) (In thousands of United States Dollars) For the year ended December 31, 2010 2009 Cash flows from operating activities: Net income $ 18,919 $ 32,716 Adjustments to reconcile net income to net cash provided by operating activities: Vessel depreciation 31,464 30,685 Amortization of deferred charges 552 456 Amortization of above market acquired bare-boat charter 938 - Equity compensation expense 782 - Changes in operating assets and liabilities: Trade accounts receivable (2,717) 5,381 Due from related parties 6 (1,795) Prepayments and other assets 230 (2) Inventory 237 (264) Trade accounts payable 118 507 Due to related parties (570) 4,460 Accrued liabilities (409) 271 Deferred revenue 501 147 ----------- ----------- Net cash provided by operating activities 50,051 72,562 ----------- ----------- Cash flows from investing activities: Vessel acquisitions (99,842) (26,460) Acquisition of above market bare-boat charter (9,000) - Purchase of short-term investments (81,729) (111,850) Maturity of short-term investments 112,119 82,540 Increase in restricted cash (750) - ----------- ----------- Net cash (used in) investing activities (79,202) (55,770) ----------- ----------- Cash flows from financing activities: Proceeds from issuance of Partnership units 105,273 - Expenses paid for issuance of Partnership units (1,533) - Proceeds from related party debt - 26,400 Payments of related party debt/financing (1,556) (52,171) Loan issuance costs - (725) Excess of purchase price over book value of vessels acquired from entity under common control (10,449) - Distributions paid (33,665) (70,463) Capital contributions by CMTC - 40,570 ----------- ----------- Net cash provided by / (used in) financing activities 58,070 (56,389) ----------- ----------- Net increase / (decrease) in cash and cash equivalents 28,919 (39,597) Cash and cash equivalents at beginning of period 3,552 43,149 ----------- ----------- Cash and cash equivalents at end of period $ 32,471 $ 3,552 ----------- ----------- Supplemental cash flow information Cash paid for interest $ 31,860 $ 31,548 Non-cash activities Net book value of vessels transferred-in, M/T Agamemnon II and M/T Ayrton II less cash paid. - $ 68,054 Net book value of vessels transferred-out, M/T Assos and M/T Atrotos - $ (70,496) Reduction in deferred offering expenses $ 107 - Change in payable offering expenses $ 31 - Capitalized vessel costs included in liabilities $ 175 $ 870 Net liabilities assumed by CMTC upon vessel contribution to the Partnership $ 31,844 $ 31,073
Notes
(1) The unaudited condensed consolidated statements of income for the
three-month and years ended
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, unearned revenue and unrealized gain
and losses. Replacement capital expenditures represent those capital
expenditures required to maintain over the long term the operating capacity
of, or the revenue generated by, the Partnership's capital assets.
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 not
required by accounting principles generally accepted in
For the
three-month
period ended
Reconciliation of Non-GAAP Financial Measure - December 31,
Operating Surplus 2010
Net income $ 2,390
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation and amortization 8,838
Deferred revenue 801
-----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 12,029
-----------
Replacement Capital Expenditures (2,985)
-----------
OPERATING SURPLUS 9,044
-----------
Recommended reserves (41)
-----------
AVAILABLE CASH $ 9,003
-----------
Contact Details:Capital GP L.L.C. Ioannis Lazaridis CEO and CFO +30 (210) 4584 950 E-mail: i.lazaridis@capitalpplp.com Investor Relations / MediaMatthew Abenante Capital Link, Inc. (New York ) Tel. +1-212-661-7566 E-mail: cplp@capitallink.comCapital Maritime & Trading Corp. Jerry Kalogiratos +30 (210) 4584 950 j.kalogiratos@capitalpplp.com
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