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2 Time charter revenues, adjusted, is not a recognized measurement under generally accepted accounting principles in the United States of America (“U.S. GAAP” or “GAAP”). We believe that the presentation of Time charter revenues, adjusted is useful to investors because it presents the charter revenues recognized in the relevant period based on the contracted charter rates, excluding the amortization of above/below market time charters attached to vessels acquired. Please refer to the definition and reconciliation of this measurement to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP at the back of this release. 3 EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share (“Adjusted EPS”) are not recognized measurements under GAAP. Please refer to the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP at the back of this release. Mr. Michael Bodouroglou, Chairman, President and Chief Executive Officer of Box Ships Inc., commented: “We are pleased to announce our fourth quarter and full-year 2012 results, which were in-line with our expectations, despite the continued weakness in the containership sector throughout the year. During 2012, we expanded our fleet from 7 to 9 vessels, and increased EBITDA by 43% from 2011. We are pleased to announce that the Board of Directors has declared a dividend of $0.22 per share payable on March 28, 2013 for shareholders of record on March 21, 2013, bringing the total amount of dividends declared to shareholders to $1.75 since our IPO and fulfilling our dividend guidance of $1.00 per share for the four calendar quarters of 2012. In addition, we currently anticipate paying a dividend of $0.12 per share with respect to the first quarter of 2013, subject to the approval of our Board of Directors.” Mr. Bodouroglou concluded, “Given the current global economic situation and the demand and supply imbalance in our industry, we believe the market will remain under pressure through 2013; we have proactively secured employment for the Box Trader and Box Voyager for periods of six to fourteen months, increasing our charter coverage, based on the earliest redelivery dates, to 85% of our fleet capacity for the remainder of 2013 and helping to insulate us from the continued weakness in the containership market.” Results of Operations Three months ended December 31, 2012 compared to three months ended December 31, 2011 During the fourth quarter of 2012, we operated an average of 9.00 vessels. Our Net Income and Adjusted Net Income during the fourth quarter of 2012 were $2.9 million and $4.9 million, respectively, resulting in basic earnings per share of $0.12 and basic adjusted earnings per share of $0.21. EBITDA and Adjusted EBITDA for the fourth quarter of 2012 were $9.2 million and $11.2 million, respectively. During the fourth quarter of 2011, we operated an average of 7.00 vessels. Our Net Income and Adjusted Net Income during the fourth quarter of 2011 were $5.6 million and $6.2 million, respectively, resulting in earnings per share of $0.34 and adjusted earnings per share of $0.38, on both a basic and diluted basis. EBITDA and Adjusted EBITDA for the fourth quarter of 2011 were $10.9 million and $11.5 million, respectively. Net revenues Net revenues represent charter hire earned, net of commissions. During the fourth quarter of 2012 and 2011, our vessels operated a total of 801 and 644 days, respectively, from a total of 828 and 644 calendar days, respectively. During the fourth quarter of 2012, we had 26 idle days and one off-hire day related to unscheduled maintenance, for a total of 27 off-hire days. Currently, all vessels in our fleet are employed under fixed rate time charters, having an average weighted remaining charter duration of 22 months (weighted by aggregate contracted charter hire). The Company reported net revenues for the fourth quarter of 2012 of $17.7 million, compared to $16.2 million in the fourth quarter of 2011, due to the increased fleet size and vessel operating days period over period, which was partially offset by the idle days of Box Trader and Box Voyager in the fourth quarter of 2012. Our net revenues are also net of the amortization of above/below market time charters, which decreased our revenues and net income for the fourth quarter of 2012 and 2011 by $1.3 million and $0.5 million, respectively, or $0.07 and $0.03 per common share, respectively. Our average time charter equivalent rate, or TCE rate, for the fourth quarter of 2012 was $21,276 per vessel per day, which was below our TCE rate of $24,601 per vessel per day during the fourth quarter of 2011, due to the lower re-chartering rates, the amount of idle days and related voyage expenses of Box Voyager and Box Trader in the fourth quarter of 2012. Our adjusted TCE rate was $22,933 per vessel per day in the fourth quarter of 2012, lower than our adjusted TCE of $25,373 for the fourth quarter of 2011, reflecting the lower re-chartering rates, the amount of idle days and related voyage expenses of Box Voyager and Box Trader in the fourth quarter of 2012. TCE rate is not a recognized measurement under GAAP. Please see the table at the back of this release for a reconciliation of TCE rates to time charter revenues, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Voyage expenses Voyage expenses for the fourth quarter of 2012 and 2011 amounted to $0.6 million and $0.4 million, respectively, and mainly relate to war risk insurance costs for our fleet and bunkers consumed by Box Trader and Box Voyager during the periods the vessels were unemployed during the fourth quarter of 2012. Vessels operating expenses Vessels operating expenses comprise crew wages and related costs, insurance and vessel registry costs, repairs and maintenance expenses (excluding dry-docking), the cost of spares and consumable stores, regulatory fees and other miscellaneous expenses. In addition, vessels operating expenses for the fourth quarter of 2012 include a non-cash amortization of other intangible assets in relation to the acquisition of OOCL Hong Kong and OOCL China. The amortization of other intangible assets for the fourth quarter of 2012 amounted to $0.3 million. During the fourth quarter of 2012, vessels operating expenses including the amortization of other intangible assets amounted to $4.9 million, or $4.6 million on an adjusted basis, compared to $3.3 million during the fourth quarter of 2011, due to the increased average number of vessels and increased calendar days period over period. On average, our vessels operating expenses for the fourth quarter of 2012 were $5,874 per vessel per day, or $5,552 per vessel per day on an adjusted basis, compared to $5,197 per vessel per day, in the fourth quarter of 2011. Management fees charged by a related party Management fees charged by Allseas Marine S.A (our “Manager” or “Allseas”) for the fourth quarter of 2012 and 2011 were $0.7 million and $0.5 million, respectively, or $822 per vessel per day and $838 per vessel per day, respectively. The increase in management fees was due primarily to the increased average number of vessels and increased calendar days period over period, and was partly offset by the decrease in the U.S. Dollar/Euro exchange rate. Management fees charged by a related party represent fees for management and technical services in accordance with our management agreement. This fee is charged on a daily basis per vessel and is affected by the number of vessels in our fleet, the number of calendar days during the period, and the U.S. Dollar/Euro exchange rate at the beginning of each month. Depreciation Depreciation for our fleet for the fourth quarter of 2012 and 2011 was $4.2 million and $3.4 million, respectively, due to the increased number of vessels which resulted in increased calendar days period over period. General and administrative expenses General and administrative (“G&A”) expenses for the fourth quarter of 2012 and 2011 were $2.2 million and $1.1 million, or $2,610 and $1,699 per day, respectively. The increase in G&A expenses period over period was due primarily to increased costs related to SOX compliance, financial reporting fees, increased executive services expenses and increased share-based compensation expenses. During the fourth quarter of 2012 and 2011, expenses related to the provision of our executive services by our Manager and incentive compensation amounted to $1.2 million and $0.6 million, respectively, and share-based compensation amounted to $0.4 million and $0.2 million, respectively. Interest and finance costs Interest and finance costs amounted to $2.2 million and $1.9 million for the fourth quarters of 2012 and 2011, respectively. This increase in interest and finance costs is due to an increase in our average borrowings outstanding period over period. Full report at: www.box-ships.com About Box Ships Inc.: Box Ships Inc. is an Athens, Greece-based international shipping company specializing in the transportation of containers. The Company’s current fleet consists of nine containerships with a total carrying capacity of 43,925 TEU and a TEU weighted average age of 8.1 years. The Company’s shares trade on the New York Stock Exchange under the symbol “TEU.” Box Ships Inc. press release |
Box Ships Inc. Reports fourth quarter and year ended December 31, 2012 results and declares quarterly dividend of $0.22 per common share
