Capital Product Partners L.P. Announces Second Quarter 2012 Financial Results
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the second quarter of 2012 were
Total expenses for the second quarter of 2012 were
Total other expense, net for the second quarter of 2012 amounted to
As of
As of
Issuance of
On
Fleet Developments
The M/T Avax (47,834 dwt built 2007,
Market Commentary
Overall, product tanker average spot earnings for the second quarter of 2012 were softer when compared to the previous quarter, as sluggish economic growth in the US, weak demand in
The product tanker period charter market remained active albeit with fewer fixtures when compared to the previous quarters due to the soft rates prevailing in the spot market as well as in anticipation of the seasonally weaker summer months.
On the supply side, the product tanker order book continued to experience substantial slippage during 2012, as approximately 62% 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 2012 will be in the region of 3.2%, while demand for product tankers for the year is estimated to grow by 5.7%. We believe the current low product tanker order book is amongst the lowest in the shipping industry and together with the attractive demand fundamentals should positively affect spot and period charter rates going forward.
The crude tanker spot market saw solid earnings in the first half of the second quarter, but softened towards the end of the quarter as we entered the seasonally weaker summer months. In the first half of the second quarter, the tighter sanctions on Iranian crude oil, increased stockpiling by the US and
Slippage for the crude tanker order book as of the end of
Quarterly Common and Class B Unit Cash Distribution
On
In addition, on
Results of Annual General Meeting
On
Management Commentary
Mr.
"We are very pleased to have completed a very important transaction for the Partnership during the second quarter with the issuance of the Class
"Importantly, we earned
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), or +(44) 1452 555 566 (from outside the US). Please quote "
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, new building deliveries and slippage as well as market and rate expectations and expectations regarding our quarterly 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
Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Comprehensive Income (In thousands of United States Dollars, except number of units and earnings per unit) For the three-month For the six-month period period ended ended June 30, June 30, 2012 2011 2012 2011 Revenues 20,124 $ 22,484 43,783 $ 43,909 Revenues - related party 17,724 5,368 33,904 11,597 ----------- ----------- ----------- ----------- Total Revenues 37,848 27,852 77,687 55,506 ----------- ----------- ----------- ----------- Expenses: Voyage expenses 437 1,041 3,259 1,776 Voyage expenses related party 143 - 284 - Vessel operating expenses - related party 6,133 7,854 13,422 14,903 Vessel operating expenses 5,038 79 9,830 79 General and administrative expenses 2,259 3,903 4,547 5,195 Gain on sale of vessel to third parties (341) - (1,296) - Depreciation 12,025 8,233 24,221 16,350 ----------- ----------- ----------- ----------- Operating income 12,154 6,742 23,420 17,203 ----------- ----------- ----------- ----------- Non operating income (expense),net: Gain from bargain purchase - 16,526 - 16,526 Other income (expense), net: Interest expense and finance cost (10,101) (8,244) (18,929) (16,469) Gain on interest rate swap agreement 808 - 1,447 - Interest and other income 509 123 657 281 ----------- ----------- ----------- ----------- Total other expense, net (8,784) (8,121) (16,825) (16,188) ----------- ----------- ----------- ----------- Net income 3,370 15,147 6,595 17,541 ----------- ----------- ----------- ----------- Preferred interest in net income attributable to preferred unit holders 4,159 - 4,159 -General Partner's interest in Partnership's (loss)/net income (16) $ 303 $ 49 $ 351 Limited Partners' interest in Partnership's net (loss) / income $ (773) $ 14,844 $ 2,387 $ 17,190 Net (loss) / income per: Common unit (basic and diluted) (0.01) 0.38 0.03 0.44 Weighted-average units outstanding: Common units (basic and diluted) 68,187,547 38,756,675 68,186,476 37,958,265 Comprehensive income: Partnership's net income 3,370 $ 15,147 6,595 $ 17,541 Other Comprehensive income: Unrealized gain on derivative instruments 5,668 3,781 9,840 8,628 ----------- ----------- ----------- ----------- Comprehensive income 9,038 18,928 16,435 26,169 ----------- ----------- ----------- -----------Capital Product Partners L.P. Unaudited Condensed Consolidated Balance Sheets (In thousands of United States Dollars, except number of units and earnings per unit) As of As of December 31, June 30, 2012 2011 Assets Current assets Cash and cash equivalents $ 40,130 $ 53,370 Trade accounts receivable 1,900 3,415 Due from related parties 33 - Prepayments and other assets 1,214 1,496 Inventories 1,893 4,010 ------------- ------------- Total current assets 45,170 62,291 ------------- ------------- Fixed assets Vessels, net 1,031,445 1,073,986 ------------- ------------- Total fixed assets 1,031,445 1,073,986 ------------- ------------- Other non-current assets Above market acquired charters 47,215 51,124 Deferred charges, net 2,017 2,138 Restricted cash 10,000 6,750 ------------- ------------- Total non-current assets 1,090,677 1,133,998 ------------- ------------- Total assets $ 1,135,847 $ 1,196,289 ------------- ------------- Liabilities and Partners' Capital Current liabilities Current portion of long-term debt $ - $ 18,325 Trade accounts payable 6,488 8,460 Due to related parties 9,023 10,572 Derivative instruments 1,389 8,255 Accrued liabilities 4,939 2,286 Deferred revenue 8,419 7,739 ------------- ------------- Total current liabilities 30,258 55,637 ------------- ------------- Long-term liabilities Long-term debt 463,514 615,255 Deferred revenue 2,814 3,649 Derivative instruments - 4,422 ------------- ------------- Total long-term liabilities 466,328 623,326 ------------- ------------- Total liabilities 496,586 678,963 ------------- ------------- Partners' capital 639,261 517,326 ------------- ------------- Total liabilities and partners' capital $ 1,135,847 $ 1,196,289 ------------- -------------Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Cash Flows (In thousands of United States Dollars) For the six-month period ended June 30, 2012 2011 Cash flows from operating activities: Net income $ 6,595 $ 17,541 Adjustments to reconcile net income to net cash provided by operating activities: Vessel depreciation 24,221 16,350 Gain from bargain purchase - (16,526) Amortization of deferred charges 304 302 Gain on interest rate swap agreements (1,447) - Gain on sale of vessel to third parties (1,296) - Amortization of above market acquired charters 3,909 1,538 Equity compensation expense 1,991 1,159 Changes in operating assets and liabilities: Trade accounts receivable 1,515 (75) Due from related parties (33) (1) Prepayments and other assets 282 (180) Inventory 2,117 (189) Trade accounts payable (2,004) 1,689 Due to related parties (1,424) 1,048 Accrued liabilities (340) 22 Deferred revenue (155) 1,388 ------------- ------------- Net cash provided by operating activities 34,235 24,066 ------------- ------------- Cash flows from investing activities: Vessel acquisitions and improvements (185) (26,634) Additions to restricted cash (3,250) (250) Net proceeds from sale of vessel to third parties 19,675 - ------------- ------------- Net cash provided by / (used in) investing activities 16,240 (26,884) ------------- ------------- Cash flows from financing activities: Net proceeds from issuance of Partnership units 139,400 1,470 Proceeds from issuance of long-term debt - 25,000 Loan issuance costs (133) (250) Payments of long-term debt (170,066) - Dividends paid (32,916) (18,005) ------------- ------------- Net cash (used in)/ provided by financing activities (63,715) 8,215 ------------- ------------- Net (decrease) / increase in cash and cash equivalents (13,240) 5,397 Cash and cash equivalents at beginning of period 53,370 32,471 ------------- ------------- Cash and cash equivalents at end of period 40,130 37,868 ------------- ------------- Supplemental cash flow information Cash paid for interest $ 18,432 $ 15,804 Non-Cash Investing and Financing Activities Units issued to acquire Patroklos - 57,056 Capitalized vessel costs included in liabilities 59 529 Unpaid private placement costs 2,975 - Acquisition of above market time charter - 48,551 Unpaid loan issuance costs - 26 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 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 second 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
Reconciliation of Non-GAAP Financial Measure - period ended
Operating Surplus June 30, 2012
Net income $ 3,370
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 12,328
Deferred revenue 1,531
Gain on sale of vessel (341)
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OPERATING SURPLUS PRIOR TO CLASS B PREFERRED UNITS
DISTRIBUTION 16,888
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Class B preferred units distribution (4,159)
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ADJUSTED OPERATING SURPLUS 12,729
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Reduction in recommended reserves 3,729
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AVAILABLE CASH $ 16,458
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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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