Capital Product Partners L.P. Announces Fourth Quarter 2011 Financial Results and Reiterates Its Commitment to Its $0.93 per Unit Annual Distribution Guidance
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the fourth quarter of 2011 were
Total expenses for the fourth quarter of 2011 were
Total other non-operating (expense) net for the fourth quarter of 2011 amounted to
As of
Fleet Developments
On
The Partnership also announced on the same date that it has amended certain terms of the charter of the M/V 'Cape Agamemnon' (179,221 dwt, built 2010,
On
On the same date, the Partnership also announced that the M/T Ayrton II (51,260 dwt, built 2009 STX Offshore & Shipbuilding Co.,
Lastly, the M/T Amore Mio II (159,924 dwt, 2001 Daewoo,
Following the commencement of the above charters, the Partnership's charter coverage of total fleet days is estimated at 77% for 2012.
Market Commentary
Overall, the product tanker spot market improved during the fourth quarter of 2011 when compared to the previous quarter, as a result of increased activity in most clean markets driven mainly by the Transatlantic route, as well as increasing momentum in the East clean markets. Clean spot rates saw a further improvement in the Atlantic towards the end of the quarter, posting a strong end to the year on the back of improving fleet utilization and increased seasonal demand.
The period charter market remained robust with increased activity for both shorter and longer term employment with a number of traders and operators seeking longer term charter coverage. As a result, period charter fixtures in 2011 for one year or longer employment for
The product tanker order book experienced substantial slippage during 2011, as approximately 56% of the expected MR and handy size tanker new buildings were not delivered on schedule. Analysts estimate that net fleet product tanker growth for 2011 was between 2-3%. We believe the current product tanker order book going forward is amongst the lowest in the shipping industry given the attractive industry fundamentals.
The crude tanker spot charter market for both VLCCs and Suezmaxes saw a seasonal improvement in the fourth quarter. Increased activity out of the Middle Eastern Gulf and
The crude tanker long term period market remained illiquid, as charterers' expectations for the short term spot market prospects remain uncertain and owners are unwilling to fix long term period charters at historically low levels.
The crude tanker order book continued to experience substantial slippage during 2011, as approximately 31% of the expected crude tanker newbuilding deliveries for the year have not materialized. Industry analysts expect the crude tanker order book slippage and cancellations to remain substantial going forward due to the weak spot market, the soft shipping finance environment and downward pressure on asset values.
Quarterly Cash Distribution
On
The total distributions of
Management Commentary
Mr.
"Moreover, in line with our stated commitment to employ our vessels in the period charter market, thus offering cash flow visibility to our investors, we have successfully chartered for long term period four of our crude tanker vessels operating in the spot market at the time of the completion of the merger, further improving the long term charter coverage of our fleet. We intend to fix the remaining one crude tanker vessel currently operating in the spot market in the coming months as opportunities arise, in order to eliminate the Partnership's remaining crude tanker spot market exposure."
"Given all of the above, we take this opportunity to reiterate our commitment to our annual distribution guidance of
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) 966-9439 (from the US), 0(871) 700-0345 (from the
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 the current and future employment of our vessels, redelivery dates and charter rates, timing during which we will charter our remaining crude carrier vessel, expected fleet coverage for 2012, newbuilding deliveries and market and rate expectations as well as expectations regarding our cash flow outlook, quarterly distribution 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 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 (In thousands of United States Dollars, except number of units and earnings per unit) For the three-month For the years ended period ended December 31, December 31, 2011 2010 2011 2010 ------------ ------------ ------------ ------------ Revenues $ 31,810 $ 24,859 $ 98,517 $ 113,562 Revenues - related party 12,144 4,146 31,799 11,030 Total Revenues 43,954 29,005 130,316 124,592 Expenses: Voyage expenses 8,620 1,170 11,565 7,009 Voyage expenses - related party 165 - 165 - Vessel operating expenses - related party 7,752 7,940 30,516 30,261 Vessel operating expenses 4,107 - 4,949 1,034 General and administrative expenses 2,378 1,270 10,609 3,506 Depreciation 12,253 8,116 37,214 31,464 ------------ ------------ ------------ ------------ Operating income 8,679 10,509 35,298 51,318 ------------ ------------ ------------ ------------ Non operating income (expense), net: ------------ ------------ ------------ ------------ Gain from bargain purchase - - 82,453 - ------------ ------------ ------------ ------------ Other non operating income (expense), net: Interest expense and finance cost (9,001) (8,331) (33,820) (33,259) Gain on interest rate swap agreement 1,043 - 2,310 - Interest and other income 318 212 879 860 ------------ ------------ ------------ ------------ Total other non operating (expense), net (7,640) (8,119) (30,631) (32,399) ------------ ------------ ------------ ------------ Net income 1,039 2,390 87,120 18,919 ------------ ------------ ------------ ------------ Less: Net (income) attributable to CMTC operations - - - (983) ------------ ------------ ------------ ------------ Partnership's net income $ 1,039 $ 2,390 $ 87,120 $ 17,936 ============ ============ ============ ============General Partner's interest in Partnership's net income $ 21 $ 48 $ 1,742 $ 359 Limited Partners' interest in Partnership's net income $ 1,018 $ 2,342 $ 85,378 $ 17,577 Net income per: Common units (basic and diluted) 0.02 0.06 1.78 0.54 Weighted-average units outstanding: Common units (basic and diluted) 68,182,501 37,150,983 47,138,336 32,437,314Capital Product Partners L.P. Unaudited Condensed Consolidated Balance Sheets (In thousands of United States Dollars) As of As of December 31, December 31, Assets 2011 2010 Current assets Cash and cash equivalents $ 53,370 $ 32,471 Trade accounts receivable 3,415 2,305 Due from related parties - 2 Prepayments and other assets 1,496 278 Inventories 4,010 83 -------------- -------------- Total current assets 62,291 35,139 -------------- -------------- Fixed assets Vessels, net 1,073,986 707,339 -------------- -------------- Total fixed assets 1,073,986 707,339 -------------- -------------- Other non-current assets Above market acquired charters 51,124 8,062 Deferred charges, net 2,138 2,462 Restricted cash 6,750 5,250 -------------- -------------- Total non-current assets 1,133,998 723,113 -------------- -------------- Total assets 1,196,289 $ 758,252 -------------- -------------- Liabilities and partners' capital Current liabilities Current portion of long-term debt $ 18,325 $ - Trade accounts payable 8,460 526 Due to related parties 10,572 4,544 Accrued liabilities 2,286 898 Deferred revenue 7,739 3,207 8,255 - Derivative instruments Total current liabilities 55,637 9,175 -------------- -------------- Long-term liabilities Long-term debt 615,255 474,000 Deferred revenue 3,649 2,812 Derivative instruments 4,422 32,505 -------------- -------------- Total long-term liabilities 623,326 509,317 -------------- -------------- Total liabilities 678,963 518,492 -------------- -------------- Partners' capital 517,326 239,760 -------------- -------------- Total liabilities and partners' capital $ 1,196,289 $ 758,252 -------------- --------------Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Cash Flows (In thousands of United States Dollars) For the years ended December 31, 2011 2010 Cash flows from operating activities: Net income $ 87,120 $ 18,919 Adjustments to reconcile net income to net cash provided by operating activities: Vessel depreciation 37,214 31,464 Gain from bargain purchase (82,453) - Amortization of deferred charges 809 552 Amortization of above market acquired charters 5,489 938 Equity compensation expense 2,455 782 Gain on interest rate swap agreement (2,310) - Changes in operating assets and liabilities: Trade accounts receivable 7,211 (2,717) Due from related parties 2 6 Prepayments and other assets (589) 230 Inventories 5,576 237 Trade accounts payable (4,600) 118 Due to related parties (4,507) (570) Accrued liabilities (247) (409) Deferred revenue 5,369 501 --------- --------- Net cash provided by operating activities 56,539 50,051 --------- --------- Cash flows from investing activities: Vessel acquisitions (27,003) (99,842) Acquisition of above market bare-boat charter - (9,000) Additions to restricted cash (1,500) (750) Cash and cash equivalents acquired in business acquisition 11,847 - Purchase of short term investments - (81,729) Maturity of short term investments - 112,119 --------- --------- Net cash used in investing activities (16,656) (79,202) --------- --------- Cash flows from financing activities: Proceeds from issuance of Partnership units 1,470 105,273 Expenses paid for issuance of Partnership units - (1,533) Proceeds from issuance of long-term debt 159,580 - Payments of long-term debt (134,580) - Payments of related-party debt/financing - (1,556) Loan issuance costs (338) - Excess of purchase price over book value of vessels acquired from entity under common control - (10,449) Dividends paid (45,116) (33,665) --------- --------- Net cash (used in) / provided by financing activities (18,984) 58,070 --------- --------- Net increase in cash and cash equivalents 20,899 28,919 Cash and cash equivalents at beginning of period 32,471 3,552 --------- --------- Cash and cash equivalents at end of period 53,370 32,471 ========= ========= ========= ========= Supplemental Cash Flow Information Cash paid for interest $ 32,210 $ 31,860 Non-Cash Investing and Financing Activities Net liabilities assumed by CMTC upon contribution of vessels to the Partnership. - $ 31,844 Units issued to acquire vessel-owning company of Cape Agamemnon $ 57,056 - Capitalized vessel costs included in liabilities $ 252 $ 175 Acquisition of above market time charter $ 48,551 - Reduction in deferred offering expenses - $ 107 Change in payable offering expenses - $ 31 Crude Carriers net assets at the completion of the merger. 211,144 - Units issued according to the Merger Agreement to acquire Crude Carriers. $ 155,559 - Fair value of Crude Carriers' Equity Incentive Plan attributable to precombination services. $ 1,505 -
Supplemental information to the Unaudited Condensed Consolidated Statements of Cash Flows
On
For the year
ended
December 31,
2011
Trade accounts receivable $ 8,321
Prepayments and other assets 629
Inventories 9,503
Vessels 351,750
-------------
Total assets 370,203
-------------
Trade accounts payable $ 12,497
Due to related parties 10,457
Accrued liabilities 1,525
Long term debt 134,580
-------------
Total liabilities 159,059
-------------
Crude Carriers net assets $ 211,144
-------------
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, deferred revenue, equity compensation expense and unrealized gain and losses. In prior periods the Partnership designated a separate reserve in its calculation of Operating Surplus for "Replacement Capital Expenditures." The intent of this reserve is to invest, rather than distribute, an amount of cash flow each quarter so that the Partnership will be able to replace vessels in its fleet as those vessels reach the end of their useful lives. Based on current estimates of future vessel replacement costs, prior levels of Replacement Capital Expenditure reserves and investment returns from previous Replacement Capital Expenditure reserves, the Board of Directors has determined not to reserve additional Replacement Capital Expenditures for the fourth quarter. The Board of
Directors will continue to review its Replacement Capital Expenditure requirements on a quarterly basis. 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 2011
Net income $ 1,039
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation and amortization 12,211
Deferred revenue 2,570
-------------
OPERATING SURPLUS 15,820
-------------
Reduction on recommended reserves 638
-------------
AVAILABLE CASH $ 16,458
-------------
Contact Details:Capital GP L.L.C. Ioannis Lazaridis CEO and CFO +30 (210) 4584 950 E-mail: i.lazaridis@capitalpplp.comCapital Maritime & Trading Corp. Jerry Kalogiratos Finance Director +30 (210) 4584 950 j.kalogiratos@capitalpplp.com Investor Relations / MediaMatthew Abenante Capital Link, Inc. (New York ) Tel. +1-212-661-7566 E-mail: cplp@capitallink.com
Source:
News Provided by Acquire Media
