Capital Product Partners L.P. Announces Fourth Quarter 2012 Financial Results and Charter Extension for M/T Amore Mio II
The Partnership's net loss for the quarter ended
After taking into account the
Operating surplus for the quarter ended
Revenues for the fourth quarter of 2012 were
Total expenses for the fourth quarter of 2012 were
Total other expense, net for the fourth quarter of 2012 amounted to
As of
As of
One Year Time Charter Extension for Amore Mio II And Other Fleet Developments
On
As consideration for the acquisition of the two container vessels, CPLP contributed the VLCC tankers M/T 'Alexander The Great' (297,958 dwt, built 2010
The transaction was unanimously recommended by the Partnership's Conflicts Committee and unanimously approved by the Partnership's Board. The effective date of the transaction was
On
As of
Market Commentary
Overall, product tanker spot earnings in the fourth quarter of 2012 improved considerably with average earnings for the quarter reaching the highest level since the first quarter of 2009. Demand for product tankers was quite robust in all main product tanker markets, as increased arbitrage opportunities in the Atlantic basin and increased demand for
Product tanker period market activity improved during the course of the fourth quarter of 2012, as more charterers sought to take period coverage and at slightly higher time charter rates compared to the third quarter of 2012.
On the supply side, the product tanker order book experienced substantial slippage during 2012, as approximately 55% of the expected MR and handy size tanker newbuildings were not delivered on schedule. Analysts expect that net fleet growth for MR and handy size product tankers for 2013 will be in the region of 3.6%, while overall demand for product tankers for the year has been revised up to 4.2%. 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 improved towards the end of the fourth quarter, as increased demand out of
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 completed a number of very important transactions for the Partnership during 2012, first with the issuance 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 employment of our vessels, redelivery dates and charter rates, fleet growth and demand, newbuilding deliveries and slippage, the outcome of the OSG bankruptcy proceedings and the actions of OSG and other parties, 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 (Loss) / Income
(In thousands of United States Dollars, except number of units and earnings per unit)
For the three-month
period For the year ended
ended December 31, December 31,
2012 2011 2012 2011
Revenues 20,949 31,810 84,012 98,517
Revenues - related party 17,360 12,144 69,938 31,799
---------- ---------- ---------- ----------
Total Revenues 38,309 43,954 153,950 130,316
---------- ---------- ---------- ----------
Expenses:
Voyage expenses 777 8,620 5,114 11,565
Voyage expenses related
party 133 165 554 165
Vessel operating expenses -
related party 4,727 7,752 23,634 30,516
Vessel operating expenses 6,476 4,107 22,126 4,949
General and administrative
expenses 2,252 2,378 9,159 10,609
Gain on sale of vessel to
third parties - - (1,296) -
Depreciation 11,994 12,253 48,235 37,214
Vessels' impairment charge 43,178 - 43,178 -
---------- ---------- ---------- ----------
Operating (loss) / income (31,228) 8,679 3,246 35,298
---------- ---------- ---------- ----------
Non-operating income
(expense),net:
Gain from bargain purchase - - - 82,453
Other income (expense),
net:
Interest expense and
finance cost (3,852) (9,001) (26,658) (33,820)
Gain on interest rate swap
agreement 25 1,043 1,448 2,310
Interest and other income 48 318 775 879
---------- ---------- ---------- ----------
Total other expense, net (3,779) (7,640) (24,435) (30,631)
---------- ---------- ---------- ----------
Net (loss) / income (35,007) 1,039 (21,189) 87,120
---------- ---------- ---------- ----------
Preferred unit holders'
interest in Partnership's
net income 3,325 - 10,809 -
General Partner's interest
in Partnership's net
(loss) / income (767) 21 (640) 1,742
Common unit holders'
interest in Partnership's
net (loss) / income (37,565) 1,018 (31,358) 85,378
Net (loss) / income per:
-- Common units (basic and
diluted) (0.55) 0.02 (0.46) 1.78
Weighted-average units
outstanding:
-- Common units (basic and
diluted) 68,383,478 68,182,501 68,256,072 47,138,336
Comprehensive (loss) /
income:
Partnership's net (loss) /
income (35,007) 1,039 (21,189) 87,120
Other Comprehensive income:
Unrealized gain on
derivative instruments 467 4,565 10,762 17,518
---------- ---------- ---------- ----------
Comprehensive (loss) /
income (34,540) 5,604 (10,427) 104,638
---------- ---------- ---------- ----------
Unaudited Condensed Consolidated Balance Sheets
(In thousands of United States Dollars)
December 31, December 31,
2012 2011
Assets
Current assets
Cash and cash equivalents $ 43,551 $ 53,370
Trade accounts receivable, net 2,346 3,415
Prepayments and other assets 1,259 1,496
Inventories 2,333 4,010
------------ ------------
Total current assets 49,489 62,291
------------ ------------
Fixed assets
Vessels, net 959,550 1,073,986
------------ ------------
Total fixed assets 959,550 1,073,986
------------ ------------
Other non-current assets
Trade accounts receivable 848 -
Above market acquired charters 47,720 51,124
Deferred charges, net 2,021 2,138
Restricted cash 10,500 6,750
------------ ------------
Total non-current assets 1,020,639 1,133,998
------------ ------------
Total assets 1,070,128 $ 1,196,289
------------ ------------
Liabilities and Partners' Capital
Current liabilities
Current portion of long-term debt $ - $ 18,325
Trade accounts payable 4,776 8,460
Due to related parties 17,447 10,572
Derivative instruments 467 8,255
Accrued liabilities 2,781 2,286
Deferred revenue 10,302 7,739
------------ ------------
Total current liabilities 35,773 55,637
------------ ------------
Long-term liabilities
Long-term debt 458,365 615,255
Deferred revenue 2,162 3,649
Derivative instruments - 4,422
------------ ------------
Total long-term liabilities 460,527 623,326
------------ ------------
Total liabilities 496,300 678,963
------------ ------------
Commitments and contingencies
------------ ------------
Partners' capital 573,828 517,326
------------ ------------
Total liabilities and partners' capital $ 1,070,128 $ 1,196,289
------------ ------------
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of United States Dollars)
For the years ended
December 31,
2012 2011
Cash flows from operating activities:
Net (loss) / income $ (21,189) $ 87,120
Adjustments to reconcile net (loss) / income to
net cash provided by operating activities:
Vessel depreciation 48,235 37,214
Vessel impairment 43,178 --
Gain from bargain purchase -- (82,453)
Amortization of deferred charges 480 809
Amortization of above market acquired charters 7,904 5,489
Equity compensation expense 3,826 2,455
Gain on interest rate swap agreement (1,448) (2,310)
Gain on sale of vessels to third parties (1,296) --
Changes in operating assets and liabilities:
Trade accounts receivable 221 7,211
Due from related parties -- 2
Prepayments and other assets 237 (589)
Inventories 1,677 5,576
Trade accounts payable (5,594) (4,600)
Due to related parties 7,009 (4,507)
Accrued liabilities 480 (247)
Deferred revenue 1,078 5,369
----------- -----------
Net cash provided by operating activities 84,798 56,539
----------- -----------
Cash flows from investing activities:
Vessel acquisitions and new building advances (1,614) (27,003)
Additions to restricted cash (3,750) (1,500)
Proceeds from sale of vessels 21,299 --
Cash and cash equivalents acquired in business
acquisition -- 11,847
----------- -----------
Net cash provided by / (used in) investing
activities 15,935 (16,656)
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of Partnership units 140,000 1,470
Expenses paid for issuance of Partnership units (1,673) --
Proceeds from issuance of long-term debt -- 159,580
Payments of long-term debt (175,215) (134,580)
Loan issuance costs (348) (338)
Dividends paid (73,316) (45,116)
----------- -----------
Net cash used in financing activities (110,552) (18,984)
----------- -----------
Net (decrease) / increase in cash and cash
equivalents (9,819) 20,899
----------- -----------
Cash and cash equivalents at beginning of period 53,370 32,471
----------- -----------
Cash and cash equivalents at end of period 43,551 53,370
----------- -----------
Supplemental Cash Flow Information
Cash paid for interest $ 25,864 $ 32,210
Non-Cash Investing and Financing Activities
Fair value of vessels transferred-in, M/V
Archimidis and M/V Agamemnon $ 133,000 --
Fair value of vessels transferred out, M/T
Alexander the Great and M/T Achilleas, reduced by
the net cash consideration received $ (137,500) --
Acquisition of above market time charter $ 4,500 $ 48,551
Units issued to acquire M/V Cape Agamemnon -- $ 57,055
Capital expenditures included in liabilities $ 134 $ 252
Offering expenses included in liabilities $ 1,908 --
Crude's net assets at the completion of the
business acquisition -- $ 211,144
Units issued to acquire Crude -- $ 155,559
Fair value of Crude's Equity Incentive Plan
attributable to precombination services -- $ 1,505
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 Impairment Charge and deferred revenue. 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 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
For the three-month
Reconciliation of Non-GAAP Financial Measure - period ended
Operating Surplus December 31, 2012
Net loss $ (35,007)
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 12,833
Deferred revenue 1,486
Vessels impairment charge 43,178
-------------------------
OPERATING SURPLUS PRIOR TO CLASS B PREFERRED
UNITS DISTRIBUTION 22,490
-------------------------
Class B preferred units distribution (3,325)
-------------------------
ADJUSTED OPERATING SURPLUS 19,165
-------------------------
Increase in recommended reserves (2,707)
-------------------------
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
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