COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
incorporation were amended. Under the amended articles of incorporation, the Companys authorized capital stock consists of 1,000,000,000 shares of common stock, par value $0.0001 per share and 100,000,000 preferred shares, par value $0.0001 per share of which no shares were issued. Of these
preferred shares, 10,000,000 shares have been designated Series A Participating Preferred Stock in connection with the adoption of a stockholder rights plan. All shares of stock are in registered form.
On July 20, 2010, pursuant to a rights offering authorized by the Board of Directors on July 14, 2010, the Company issued 24,000,000 shares of common stock in exchange of $2,400, increasing the issued share capital of the Company to 25,000,000 shares of common stock.
On October 19, 2010, within the context of the Initial Public Offering completed in November 2010, the Company effected a dividend of 0.88 shares for each share of common stock outstanding on the record date of August 27, 2010 (the Stock Split). As a result of this dividend, the Company issued
22,000,000 additional shares in respect of its 25,000,000 shares of the then outstanding common stock.
On November 4, 2010, the Company completed its Initial Public Offering in the United States under the Securities Act. In this respect 13,300,000 common shares at par value $0.0001 were issued at a public offering price of $12.00 per share, increasing the issued share capital to 60,300,000 shares. The
net proceeds of the Initial Public Offering were $145,543.
On March 27, 2012, the Company completed a follow-on public equity offering in the United States under the Securities Act. In this respect 7,500,000 shares at par value $0.0001 were issued at a public offering price of $14.10 per share, increasing the issued share capital to 67,800,000 shares. The net
proceeds of the follow-on offering were $100,584.
On October 19, 2012, the Company completed a follow-on public equity offering in the United States under the Securities Act. In this respect 7,000,000 shares at par value $0.0001 were issued at a public offering price of $14.00 per share, increasing the issued share capital to 74,800,000 shares. The net
proceeds of the follow-on offering were $93,547.
On December 5, 2016, the Company completed a follow-on public equity offering in the United States under the Securities Act. In this respect, 12,000,000 shares at par value $0.0001 were issued at a public offering price of $6.00 per share, increasing the issued share capital to 86,800,000 shares. The
net proceeds of the follow-on offering were $69,037.
During the nine month period ended September 30, 2015, the Company issued 448,800 shares, in aggregate, at par value of $0.0001 to Costamare Shipping pursuant to the Group Management Agreement (Note 3). On December 31, 2015, the Company issued 149,600 shares, at par value of $0.0001 to
Costamare Services pursuant to the Services Agreement (Note 3). On March 30, 2016, June 30, 2016, September 30, 2016 and December 30, 2016, the Company issued 598,400 shares, in aggregate, at par value of $0.0001 to Costamare Services pursuant to the Services Agreement (Note 3). The fair value of
such shares was calculated based on the closing trading price at the date of issuance. There were no share based payment awards outstanding during the year ended December 31, 2016.
On July 6, 2016, the Company implemented the Plan. The Plan offers holders of Company common stock the opportunity to purchase additional shares by having their cash dividend automatically reinvested in Company common stock. Participation in the Plan is optional, and shareholders who decide
not to participate in the Plan will continue to receive cash dividends, as declared and paid in the usual manner. During the year ended December 31, 2016, the Company issued 2,428,081 shares in aggregate at par value of $0.0001 to its common stockholders, at an average price of $8.043837 per share.
F-37
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
(b) Preferred Stock:
On August 7, 2013, the Company issued 2,000,000, Series B Preferred Stock in the United States under the Securities Act, which pay a dividend of 7.625% per annum in arrears on a quarterly basis (equal to $1.90625 per annum per share) at $25 per share. At any time after
August 6, 2018, the Series B Preferred Stock may be redeemed, at the Companys election, at a price of $25 of liquidation preference per share. The net proceeds from the offering were $48,042.
On January 21, 2014, the Company issued 4,000,000, Series C Preferred Stock in the United States under the Securities Act, which pay a dividend of 8.50% per annum in arrears on a quarterly basis (equal to $2.125 per annum per share) at $25 per share. At any time after January 21, 2019, the Series
C Preferred Stock may be redeemed, at the Companys election, at a price of $25 of liquidation preference per share. The net proceeds from the offering were $96,523.
On May 13, 2015, the Company issued 4,000,000, Series D Preferred Stock in the United States under the Securities Act, which pay a dividend of 8.75% per annum in arrears on a quarterly basis (equal to $2.1875 per annum per share) at $25 per share. At any time after May 13, 2020, the Series D
Preferred Stock may be redeemed, at the Companys election, at a price of $25 of liquidation preference per share. The net proceeds from the offering were $96,616.
(c) Additional Paid-in Capital:
The amounts shown in the accompanying consolidated balance sheets, as additional paid-in capital include: (i) payments made by the stockholders at various dates to finance vessel acquisitions in excess of the amounts of bank loans obtained, (ii) the difference between
the par value of the shares issued in the Initial Public Offering in November 2010 and the offerings in March 2012, October 2012, August 2013, January 2014, May 2015 and December 2016 and the net proceeds received from the issuance of such shares, (iii) the difference between the par value and the
fair value of the shares issued to Costamare Shipping and Costamare Services (Note 3) and (iv) the difference between the par value of the shares issued under the Plan.
(d) Dividends declared and / or paid
: During the year ended December 31, 2015, the Company declared and paid to its common stockholders (i) $20,944 or $0.28 per common share for the fourth quarter of 2014, (ii) $21,736 or $0.29 per common share for the first quarter of 2015, (iii) $21,779 or
$0.29 per common share for the second quarter of 2015 and (iv) $21,822 or $0.29 per common share for the third quarter of 2015. During the year ended December 31, 2016, the Company declared and paid to its common stockholders (i) $21,866 or $0.29 per common share for the fourth quarter of 2015,
(ii) $21,908 or $0.29 per common share for the first quarter of 2016, (iii) paid $7,570 or $0.29 per common share and issued 1,610,248 shares pursuant to the Plan and (iv) paid $2,595 or $0.10 per common share and issued 817,833 shares pursuant to the Plan.
During the year ended December 31, 2015 the Company declared and paid to its holders of Series B Preferred Stock (i) $953 or $0.476563 per share for the period from October 15, 2014 to January 14, 2015, (ii) $953 or $0.476563 per share for the period from January 15, 2015 to April 14, 2015, (iii)
$953 or $0.476563 per share for the period from April 15, 2015 to July 14, 2015 and (iv) $953 or $0.476563 per share for the period from July 15, 2015 to October 14, 2015. During the year ended December 31, 2016 the Company declared and paid to its holders of Series B Preferred Stock (i) $953 or
$0.476563 per share for the period from October 15, 2015 to January 14, 2016, (ii) $953 or $0.476563 per share for the period from January 15, 2016 to April 14, 2016, (iii) $953 or $0.476563 per share for the period from April 15, 2016 to July 14, 2016 and (iv) $953 or $0.476563 per share for the period
from July 15, 2016 to October 14, 2016.
During the year ended December 31, 2015, the Company declared and paid to its holders of Series C Preferred Stock (i) $2,125 or $0.531250 per share for the period from October 15, 2014 to January 14, 2015, (ii) $2,125 or $0.531250 per share for the period from January 15, 2015 to April 14, 2015,
(iii) $2,125 or $0.531250 per share for the period from April 15, 2015 to July 14, 2015 and (iv) $2,125 or $0.531250 per share for the period from July 15, 2015 to October 14, 2015. During the year ended December 31, 2016, the Company declared and paid to its holders of
F-38
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
Series C Preferred Stock (i) $2,125 or $0.531250 per share for the period from October 15, 2015 to January 14, 2016, (ii) $2,125 or $0.531250 per share for the period from January 15, 2016 to April 14, 2016, (iii) $2,125 or $0.531250 per share for the period from April 15, 2016 to July 14, 2016 and (iv)
$2,125 or $0.531250 per share for the period from July 15, 2016 to October 14, 2016.
During the year ended December 31, 2015, the Company declared and paid to its holders of Series D Preferred Stock $1,506 or $0.376736 per share for the period from May 13, 2015 to July 14, 2015 and $2,188 or $0.546875 per share for the period from July 15, 2015 to October 14, 2015. During the
year ended December 31, 2016, the Company declared and paid to its holders of Series D Preferred Stock (i) $2,188 or $0.546875 per share for the period from October 15, 2015 to January 14, 2016, (ii) $2,188 or $0.546875 per share for the period from January 15, 2016 to April 14, 2016, (iii) $2,188 or
$0.546875 per share for the period from April 15, 2016 to July 14, 2016 and (iv) $2,188 or $0.546875 per share for the period from July 15, 2016 to October 14, 2016.
15. Earnings per share (EPS)
All common shares issued are Costamare common stock and have equal rights to vote and participate in dividends. In August 2013, the Company issued Series B Preferred Stock, which receives an annual dividend of 7.625%, payable quarterly in arrears on the 15th day of January, April, July and
October of each year. In January 2014, the Company issued Series C Preferred Stock, which receives an annual dividend of 8.50%, payable quarterly in arrears on the 15th day of January, April, July and October of each year. Additionally, in May 2015, the Company issued Series D Preferred Stock,
which receives an annual dividend of 8.75%, payable quarterly in arrears on the 15th day of January, April, July and October of each year. Profit or loss attributable to common equity holders is adjusted by the contractual amount of dividends on Series B Preferred Stock, Series C Preferred Stock and
Series D Preferred Stock that should be paid for the period. Dividends paid or accrued on Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock during the years ended December 31, 2014, 2015 and 2016, amounted to $11,909, $17,903 and $21,063, respectively.
|
|
|
|
|
|
|
|
|
December 31,
|
|
2014
|
|
2015
|
|
2016
|
|
Basic EPS
|
|
Basic EPS
|
|
Basic EPS
|
Net income
|
|
|
$
|
|
115,087
|
|
|
|
$
|
|
143,764
|
|
|
|
$
|
|
81,702
|
|
Less: paid and accrued earnings allocated to Preferred Stock
|
|
|
|
(11,909
|
)
|
|
|
|
|
(17,903
|
)
|
|
|
|
|
(21,063
|
)
|
|
|
|
|
|
|
|
|
Net income available to common stockholders
|
|
|
|
103,178
|
|
|
|
|
125,861
|
|
|
|
|
60,639
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic and diluted
|
|
|
|
74,800,000
|
|
|
|
|
75,027,474
|
|
|
|
|
77,243,252
|
|
|
|
|
|
|
|
|
Earnings per common share, basic and diluted
|
|
|
$
|
|
1.38
|
|
|
|
$
|
|
1.68
|
|
|
|
$
|
|
0.79
|
|
|
|
|
|
|
|
|
F-39
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
16. Interest and Finance Costs:
The interest and finance costs in the accompanying consolidated statements of income are as follows:
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
2014
|
|
2015
|
|
2016
|
Interest expense
|
|
|
|
46,345
|
|
|
|
|
45,070
|
|
|
|
|
49,880
|
|
Interest capitalized
|
|
|
|
(1,795
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Swap effect
|
|
|
|
36,847
|
|
|
|
|
31,800
|
|
|
|
|
20,237
|
|
Amortization and write-off of financing costs
|
|
|
|
4,107
|
|
|
|
|
1,896
|
|
|
|
|
2,613
|
|
Commitment fees
|
|
|
|
506
|
|
|
|
|
600
|
|
|
|
|
75
|
|
Bank charges and other financing costs
|
|
|
|
296
|
|
|
|
|
265
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
86,306
|
|
|
|
|
79,631
|
|
|
|
|
72,808
|
|
|
|
|
|
|
|
|
17. Taxes:
Under the laws of the countries of incorporation for the vessel owning companies and/or of the countries of registration of the vessels, the companies are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in Vessel
operating expenses in the accompanying consolidated statements of income.
The vessel owning companies with vessels that have called on the United States during the relevant year of operation are obliged to file tax returns with the Internal Revenue Service. The applicable tax is 50% of 4% of U.S. related gross transportation income unless an exemption applies.
Management believes that, based on current legislation the relevant vessel owning companies are entitled to an exemption under Section 883 of the Internal Revenue Code of 1986, as amended.
18. Derivatives:
(a) Interest rate swaps that meet the criteria for hedge accounting:
The Company, according to its long-term strategic plan to maintain stability in its interest rate exposure, has decided to minimize its exposure to floating interest rates by entering into interest rate swap agreements. To this effect, the
Company has entered into interest rate swap transactions with varying start and maturity dates, in order to manage its floating rate exposure.
These interest rate swaps are designed to hedge the variability of interest cash flows arising from floating rate debt, attributable to movements in three-month or six-month USD LIBOR. According to the Companys Risk Management Accounting Policy, after putting in place the formal documentation
required by ASC 815 in order to designate these swaps as hedging instruments as from their inception, these interest rate swaps qualified for hedge accounting. Accordingly, only hedge ineffectiveness amounts arising from the differences in the change in fair value of the hedging instrument and the
hedged item are recognized in the Companys earnings. Assessment and measurement of the effectiveness of these interest rate swaps are performed at each reporting period. For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is
recognized initially in Other comprehensive income and recognized to the consolidated statement of income in the periods when the hedged item affects profit or loss. Any ineffective portion of the gain or loss on the hedging instrument is recognized in the consolidated statement of income
immediately.
At December 31, 2015 and 2016, the Company had interest rate swap agreements with an outstanding notional amount of $904,627 and $783,403, respectively. The fair value of these interest rate swaps outstanding at December 31, 2015 and 2016 amounted to a liability of $39,654 and a
F-40
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
liability of $10,459, respectively and these are included in the accompanying consolidated balance sheets. The maturity of these interest rate swaps range between June 2018 and May 2023.
During the years ended December 31, 2014, 2015 and 2016, the realized ineffectiveness on the interest rate swaps discussed under (a) above was a gain of $645, a loss of $60 and $nil, respectively, and are included in Gain / (Loss) on derivative instruments, net in the accompanying consolidated
statements of income.
During the year ended December 31, 2016, the Company terminated one interest rate derivative instrument and paid the counterparties breakage costs of $9,404, which is included in Swaps breakage cost in the accompanying 2016 consolidated statement of income. During the year ended December
31, 2014, the Company terminated three interest rate derivative instruments and paid the counterparty breakage costs of $10,192, which are separately reflected in Swaps breakage cost in the accompanying 2014 consolidated statement of income
The estimated net amount that is expected to be reclassified within the next 12 months from Accumulated Other Comprehensive Loss to earnings in respect of the settlements on interest rate swaps amounts to $12,064.
(b) Interest rate swaps that do not meet the criteria for hedge accounting:
As of December 31, 2015 and 2016, the Company had interest rate swap agreements with an outstanding notional amount of $207,439 and $199,846, respectively, for the purpose of managing risks associated with the variability
of changing LIBOR-related interest rates. Such agreements did not meet hedge accounting criteria and, therefore, changes in its fair value are reflected in earnings. The fair value of these interest rate swaps at December 31, 2015 and 2016, was a liability of $12,463 and a liability of $4,855, respectively,
and these are included in Fair value of derivatives in the accompanying consolidated balance sheets. The maturity of these interest rate swaps range between March 2017 and August 2020. During the year ended December 31, 2016, the Company terminated one interest rate derivative instrument and paid
the counter party breakage costs of $297, which is included in Swaps breakage cost in the accompanying 2016 consolidated statement of income.
(c) Foreign currency agreements:
As of December 31, 2016, the Company was engaged in three Euro/U.S. dollar forward agreements totaling $9,000 at an average forward rate of Euro/U.S. dollar 1.0653 expiring in monthly intervals up to March 2017.
As of December 31, 2015, the Company was engaged in 16 Euro/U.S. dollar forward agreements totaling $20,000 at an average forward rate of Euro/U.S. dollar 1.0725 expiring in monthly intervals up to August 2016.
As of December 31, 2014, the Company was engaged in nine Euro/U.S. dollar forward agreements totaling $22,500 at an average forward rate of Euro/U.S. dollar 1.273 expiring in monthly intervals up to September 2015.
The total change of forward contracts fair value for the year ended December 31, 2016, was a loss of $437 (gain of $1,361 for the year ended December 31, 2015 and loss of $1,009 for the year ended December 31, 2014) and is included in Gain / (Loss) on derivative instruments, net in the
accompanying consolidated statements of income.
F-41
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Effect of Derivative Instruments for the years ended
December 31, 2014, 2015 and 2016
|
|
Derivatives in ASC 815 Cash Flow Hedging Relationships
|
|
|
|
Amount of Gain / (Loss)
Recognized in Accumulated
OCI on Derivative
(Effective Portion)
|
|
Location of
Gain / (Loss)
Recognized in
Income on
Derivative
(Ineffective Portion)
|
|
Amount of Gain /
(Loss)
Recognized in
Income on
Derivative
(Ineffective Portion)
|
|
2014
|
|
2015
|
|
2016
|
|
2014
|
|
2015
|
|
2016
|
Interest rate swaps
|
|
|
|
(14,045
|
)
|
|
|
|
|
(20,418
|
)
|
|
|
|
|
8,828
|
|
|
Gain / (Loss) on
derivative instruments,
net
|
|
|
|
645
|
|
|
|
|
(60
|
)
|
|
|
|
|
|
|
Reclassification to
Interest and finance
costs
|
|
|
|
36,847
|
|
|
|
|
31,800
|
|
|
|
|
20,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
22,802
|
|
|
|
|
11,382
|
|
|
|
|
29,065
|
|
|
|
|
|
|
645
|
|
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Designated as Hedging Instruments and ineffectiveness of Hedging Instruments
under ASC 815
|
|
|
|
Location of Gain / (Loss)
Recognized in Income on
Derivative
|
|
Amount of Gain / (Loss)
Recognized in Income
on Derivative
|
|
2014
|
|
2015
|
|
2016
|
Non hedging interest
rate swaps
|
|
Gain / (Loss) on derivative instruments, net
|
|
|
|
(3,423
|
)
|
|
|
|
|
2,910
|
|
|
|
|
(3,554
|
)
|
|
Ineffective portion of
hedging interest
rate swaps
|
|
Gain / (Loss) on derivative instruments, net
|
|
|
|
645
|
|
|
|
|
(60
|
)
|
|
|
|
|
|
|
Forward contracts
|
|
Gain / (Loss) on derivative instruments, net
|
|
|
|
(1,009
|
)
|
|
|
|
|
1,361
|
|
|
|
|
(437
|
)
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
(3,787
|
)
|
|
|
|
|
4,211
|
|
|
|
|
(3,991
|
)
|
|
|
|
|
|
|
|
|
|
|
The realized loss on non-hedging interest rate swaps included in Gain / (Loss) on derivative instruments, net amounted to $9,256, $12,645 and $8,500 for the years ended December 31, 2014, 2015 and 2016, respectively.
19. Financial Instruments:
(a) Interest rate risk:
The Companys interest rates and loan repayment terms are described in Note 10.
(b) Concentration of credit risk:
Financial instruments which potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable (included in current and non-current assets), equity method investments, equity securities, debt
securities and derivative contracts (interest rate swaps and foreign currency contracts). The Company places its cash and cash equivalents, consisting mostly of deposits, with financial institutions of high credit ratings. The Company performs periodic evaluations of the relative credit standing of those
financial institutions. The Company is exposed to credit risk in the event of non-performance by the counterparties to its derivative instruments; however, the Company limits its exposure by diversifying among counterparties with high credit ratings. The Company limits its credit risk with accounts
receivable, equity method investments and equity and debt securities by performing ongoing credit evaluations of its customers and investees financial condition and generally does not require collateral for its accounts receivable.
F-42
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
(c) Fair value:
The carrying amounts reflected in the accompanying consolidated balance sheet of financial assets and accounts payable approximate their respective fair values due to the short maturity of these instruments. The fair value of long-term bank loans with variable interest rates
approximate the recorded values, generally due to their variable interest rates. The fair value of the interest rate swap agreements and the foreign currency agreements discussed in Note 18 above are determined through Level 2 of the fair value hierarchy as defined in FASB guidance for Fair Value
Measurements and are derived principally from or corroborated by observable market data, interest rates, yield curves and other items that allow value to be determined.
The fair value of the interest rate swap agreements discussed in Note 18(a) and (b) equates to the amount that would be paid by the Company to cancel the agreements. As at December 31, 2015 and 2016, the fair value of these interest rate swaps in aggregate amounted to a liability of $52,117 and
$15,314, respectively.
The fair market value of the forward contracts discussed in Note 18(c) determined through Level 2 of the fair value hierarchy as at December 31, 2015 and 2016, amounted to an asset of $352 and a liability of $85, respectively.
The following tables summarize the hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique on a recurring basis as of the valuation date.
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
Recurring measurements:
|
|
|
|
|
|
|
|
|
Forward contractsasset position
|
|
|
|
352
|
|
|
|
|
|
|
|
|
|
352
|
|
|
|
|
|
|
Interest rate swapsliability position
|
|
|
|
(52,117
|
)
|
|
|
|
|
|
|
|
|
|
(52,117
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
(51,765
|
)
|
|
|
|
|
|
|
|
|
|
(51,765
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
Recurring measurements:
|
|
|
|
|
|
|
|
|
Forward contractsliability position
|
|
|
|
(85
|
)
|
|
|
|
|
|
|
|
|
|
(85
|
)
|
|
|
|
|
|
|
Interest rate swapsliability position
|
|
|
|
(15,314
|
)
|
|
|
|
|
|
|
|
|
|
(15,314
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
(15,399
|
)
|
|
|
|
|
|
|
|
|
|
(15,399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20. Comprehensive Income:
During the year ended December 31, 2014, Other comprehensive income increased with net gains of $29,020 relating to (i) the change of the fair value of derivatives that qualify for hedge accounting (loss of $14,045), net of the settlements to net income of derivatives that qualify for hedge
accounting (gain of $36,847), (ii) the Net settlements on interest rate swaps qualifying for cash flow hedge associated with vessels under construction ($489), (iii) the amounts reclassified from Net settlements on interest rate swaps qualifying for hedge accounting to depreciation ($103) and (iv) the amounts
reclassified from net settlements on interest rate swaps qualifying for hedge accounting to Prepaid lease rentals ($6,604).
During the year ended December 31, 2015, Other comprehensive income increased with net gains of $11,485 relating to (i) the change of the fair value of derivatives that qualify for hedge accounting (loss of $20,418), net of the settlements to net income of derivatives that qualify for
F-43
COSTAMARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
December 31, 2014, 2015 and 2016
(Expressed in thousands of U.S. dollars, except share and per share data)
hedge accounting (gain of $31,800) and (ii) the amounts reclassified from Net settlements on interest rate swaps qualifying for hedge accounting to depreciation ($103).
During the year ended December 31, 2016, Other comprehensive income increased with net gains of $30,225 relating to (i) the change of the fair value of derivatives that qualify for hedge accounting (gain of $8,828), net of the settlements to net income of derivatives that qualify for hedge accounting
(gain of $20,237), (ii) the amounts reclassified from Net settlements on interest rate swaps qualifying for hedge accounting to depreciation ($84) and (iv) the amounts reclassified from net settlements on interest rate swaps qualifying for hedge accounting to Prepaid lease rentals ($1,076).
As at December 31, 2014, 2015 and 2016, Comprehensive income amounted to $144,107, $155,249 and $111,927, respectively. The estimated net amount that is expected to be reclassified within the next 12 months from Accumulated Other Comprehensive Loss to earnings in respect of the net
settlements on interest rate swaps amounts to $12,064.
21. Subsequent Events:
(a) Declaration and Payment of Dividends (common stock):
On January 3, 2017, the Company declared a dividend for the quarter ended December 31, 2016 of $0.10 per share on its common stock, paid on February 6, 2017, to stockholders of record on January 23, 2017.
(b) Declaration and Payment of Dividends (preferred stock Series B, Series C and Series D):
On January 3, 2017, the Company declared a dividend of $0.476563 per share on its Series B Preferred Stock, a dividend of $0.531250 per share on its Series C Preferred Stock and a dividend of $0.546875
per share on its Series D Preferred Stock which were all paid on January 17, 2017 to holders of record on January 13, 2017.
(c) Vessel sale:
On January 17, 2017, the Company contracted to sale for scrap the vessel
MSC Romanos
at a price of $6,585 (Note 6). On January 26, 2017, the vessel was delivered to her scrap buyers. On February 17, 2017, the Company contracted to sell for scrap the vessel
Marina
at a price of
$4,670. The sale is expected to result in a loss of approximately $2.9 million. On March 3, 2017, the vessel was delivered to her scrap buyers.
(d) Issuance of Common Stock:
On February 6, 2017, pursuant to the Plan, the Company issued 1,014,550 shares at par value of $0.0001 to its common stockholders, at a price of $5.3459 per share.
F-44
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