Core Viewpoint - Costamare reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, but down from $0.63 per share a year ago, indicating a 17.31% earnings surprise [1][2] Financial Performance - The company achieved revenues of $443.61 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.50%, although this is a decrease from $475.43 million in the same quarter last year [2] - Over the last four quarters, Costamare has consistently exceeded consensus EPS and revenue estimates [2] Stock Performance - Costamare shares have declined approximately 45.1% year-to-date, contrasting with the S&P 500's decline of 4.3% [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $426.85 million, and for the current fiscal year, it is $2.43 on revenues of $1.74 billion [7] - The trend of estimate revisions for Costamare has been unfavorable leading up to the earnings release [6] Industry Context - The Transportation - Shipping industry, to which Costamare belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, which could impact Costamare's stock performance [5]

Financial Performance - Q1 2025 Net Income available to common stockholders was $95 million ($0.79 per share)[6] - Q1 2025 Adjusted Net Income available to common stockholders was $73.3 million ($0.61 per share)[6] - The company had a liquidity of $1,022.6 million, including margin deposits, short term investments, and a hunting license facility[6] Spin-off of Dry Bulk Business - The spin-off of the dry bulk business was completed on May 6, 2025, with a distribution ratio of one CMDB share for every five CMRE shares[11] - Following the spin-off, Costamare Bulkers Holdings Limited (CMDB) owns 37 dry bulk vessels with approximately $174.5 million in bank debt[11] Chartering and Fleet - 100% of the containership fleet is fixed for 2025, and 73% is fixed for 2026, calculated on a TEU basis[11] - Contracted revenues for the containership fleet are approximately $2.3 billion with a TEU-weighted duration of 3.3 years[11] - Costamare Bulkers Inc chartered-in 48 period vessels with a total capacity of approximately 7.9 million dwt[20] Sale and Purchase Activity - The sale of the dry bulk vessel Rose concluded in April 2025, generating net sale proceeds of $4.1 million after debt prepayment[13] - An agreement was made for the sale of the dry bulk vessel Resource, with estimated net sale proceeds of $3.3 million after debt prepayment, expected within Q2 2025[13] Debt and Financing - A new bilateral loan facility was established for approximately $23.5 million to refinance existing indebtedness of one container vessel[16] - Approximately $150.2 million of bank debt related to the dry bulk owned fleet was prepaid[16]

Financial Performance - Q1 2025 net income available to common stockholders was $95.0 million, or $0.79 per share[9] - Adjusted net income for Q1 2025 was $73.3 million, or $0.61 per share[9] - Total voyage revenue decreased by 6.3%, or $29.6 million, to $440.6 million for the three-month period ended March 31, 2025, compared to $470.2 million for the same period in 2024[34] - Net income for Q1 2025 was $100,843, slightly down from $102,672 in Q1 2024, representing a decrease of 1.8%[83] - Earnings per common share remained stable at $0.79 for both Q1 2024 and Q1 2025[83] - Operating income for Q1 2025 was $107,670, compared to $103,397 in Q1 2024, indicating an increase of 4.1%[82] - Total revenues for Q1 2025 were $446,226, down from $475,430 in Q1 2024, a decline of 6.1%[82] Liquidity and Debt Management - Total liquidity as of March 31, 2025, was $1,022.6 million[9] - The company prepaid $150.2 million of its dry bulk vessels bank debt in April 2025[16] - Costamare has no significant debt maturities until 2027, with a new loan facility of $23.5 million refinanced for Polar Brasil[16] - As of March 31, 2025, the company had cash and cash equivalents of $868.0 million, with total liquidity of approximately $1,022.6 million[62] Fleet and Charter Management - The containership fleet is fully employed at 100% for 2025, with contracted revenues of approximately $2.3 billion and a TEU-weighted duration of 3.3 years[10][18] - The company has a fleet of 68 containerships with a total capacity of approximately 513,000 TEU[68] - The average remaining tenor for the chartered-in fleet of Newcastlemax/Capesize vessels is 12 months[16] - The company is actively managing its fleet to optimize charter rates and extend contracts, ensuring stable revenue streams[74] - Future charters are expected to maintain or exceed current rates, indicating confidence in market demand and pricing power[74] Revenue and Expense Trends - Voyage expenses decreased from $95.4 million to $88.3 million, a reduction of 7.4%[38] - Charter-in hire expenses decreased by 22.7%, from $144.3 million to $111.5 million[39] - General and administrative expenses increased from $5.2 million to $7.3 million, a rise of 40.4%[42] - Interest income decreased from $8.3 million to $6.4 million, a decline of 22.9%[51] - Interest and finance costs decreased from $33.0 million to $28.4 million, a reduction of 13.9%[52] Asset and Equity Changes - Total assets increased to $5,148,687,000 as of December 31, 2024, compared to $5,127,810,000 as of March 31, 2025, reflecting a growth of approximately 0.4%[86] - Current assets rose to $1,040,216,000 from $1,122,436,000, indicating a decrease of about 7.3%[85] - Total current liabilities decreased to $745,560,000 from $724,871,000, showing a reduction of approximately 2.8%[86] - Long-term debt, net of current portion, increased to $1,716,204,000 from $1,666,517,000, representing an increase of about 3%[86] - Retained earnings decreased to $1,279,605,000 from $1,360,708,000, reflecting a decline of approximately 5.9%[86] - Total stockholders' equity decreased to $2,571,059,000 from $2,646,919,000, indicating a decline of about 2.8%[86] Market and Operational Insights - The dry bulk sector faced challenges, but the Capesize market rebounded strongly in March 2025 due to improved shipments[19] - The company recorded a loss on vessel held for sale of $4.7 million during the three-month period ended March 31, 2025[49] - The company did not sell any vessels during the three-month period ended March 31, 2025, compared to a net gain of $1.0 million from vessel sales in the same period of 2024[48] - The company anticipates future results may differ materially from forward-looking statements due to inherent uncertainties[70] - The management team will hold a conference call on May 8, 2025, to discuss the financial results[66]

Profitability and Liquidity - Costamare reported a Q1 2025 net income available to common stockholders of $95.0 million, equivalent to $0.79 per share, and an adjusted net income of $73.3 million, or $0.61 per share [8][14] - The company's liquidity stood at approximately $1,022.6 million as of March 31, 2025, which includes cash, cash equivalents, short-term investments, and margin deposits [58] Completion of Spin-Off - The spin-off of Costamare's dry bulk business into a standalone public company, Costamare Bulkers Holdings Limited (CMDB), was completed on May 6, 2025, with shareholders receiving one share of CMDB for every five shares of Costamare held [2][14] Owned Fleet Charter Update - Costamare's containership fleet is fully employed, with 100% and 73% of the fleet fixed for 2025 and 2026, respectively, and contracted revenues amounting to approximately $2.3 billion with a TEU-weighted duration of 3.3 years [9][15][17] Sale and Purchase Activity - The company completed the sale of the dry bulk vessel Rose in April 2025, generating net sale proceeds of $4.1 million after debt prepayment, and has an agreement for the sale of another vessel, Resource, expected to conclude in Q2 2025 [10][11] Financial Performance Comparison - Total voyage revenue decreased by 6.3%, or $29.6 million, to $440.6 million in Q1 2025 compared to Q1 2024, primarily due to decreased revenue from Costamare Bulkers and lower charter rates [32][33] - Voyage expenses decreased to $88.3 million in Q1 2025 from $95.4 million in Q1 2024, while charter-in hire expenses also decreased to $111.5 million from $144.3 million [35][36] Cash Flows - Net cash provided by operating activities increased to $143.1 million in Q1 2025 from $138.0 million in Q1 2024, attributed to favorable changes in working capital and decreased interest payments [52] - Net cash provided by investing activities was $1.5 million in Q1 2025, a decrease from $34.6 million in Q1 2024, which was primarily due to proceeds from vessel sales in the prior year [53][54] Debt and Financing - Costamare has no significant debt maturities until 2027, and it prepaid $150.2 million of its dry bulk vessels bank debt in April 2025 [11][16] - The company refinanced existing indebtedness of Polar Brasil through a $23.5 million loan facility agreement with a European financial institution, maintaining leverage levels [7] Dividend Announcements - The company declared a dividend of $0.115 per share on common stock, paid on May 6, 2025, along with dividends on its preferred stock series [14][16]

Core Points - Costamare Inc. has successfully completed the spin-off of its dry bulk business into a new public company named Costamare Bulkers Holdings Limited [1][2] - Shareholders of Costamare Inc. received one share of Costamare Bulkers for every five shares of Costamare Inc. held as of April 29, 2025 [1] - Following the spin-off, Costamare Inc. will focus primarily on global container shipping while retaining its involvement in Neptune Maritime Leasing [2] Company Overview - Costamare Inc. is a leading owner and provider of containerships for charter, with a history spanning 51 years in the international shipping industry [2] - The company operates a fleet of 68 owned containerships, totaling approximately 513,000 TEU in capacity [2] - Costamare Inc.'s common stock and preferred stocks trade on the NYSE under the symbols "CMRE", "CMRE PR B", "CMRE PR C", and "CMRE PR D" respectively [2] Trading Information - Costamare Bulkers will commence trading on the NYSE under the ticker symbol "CMDB" starting today at 9:30 a.m. New York City time [2] - Costamare Inc. will continue to trade on the NYSE under the ticker symbol "CMRE" [2]

Core Points - Costamare Inc. will release its financial results for Q1 2025 on May 8, 2025, before the market opens in New York [1] - A conference call to discuss the financial results will take place on the same day at 8:30 a.m. ET [2] - The company has a fleet of 68 containerships with a total capacity of approximately 513,000 TEU [5] Conference Call Details - Participants can join the conference call by dialing in 10 minutes prior to the scheduled time using specific numbers for the US, UK, and international calls [2] - A replay of the conference call will be available until May 15, 2025, with designated numbers for the US and international listeners [3] - There will also be a live webcast available on the Costamare Inc. website, requiring registration 10 minutes before the start [4] Company Overview - Costamare Inc. is a leading owner and provider of containerships for charter, with 51 years of history in the international shipping industry [5] - The company's common stock and preferred stocks trade on the New York Stock Exchange under various symbols [5]

Core Viewpoint - The market anticipates Costamare (CMRE) will report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Costamare is expected to post quarterly earnings of $0.52 per share, reflecting a year-over-year decrease of 17.5% [3]. - Revenues are projected to be $412.67 million, down 13.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 17% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Costamare is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.80% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, especially when combined with a strong Zacks Rank [8]. - However, Costamare currently holds a Zacks Rank of 4, complicating the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Costamare exceeded the expected earnings of $0.66 per share by delivering $0.69, resulting in a surprise of +4.55% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Context - In the Zacks Transportation - Shipping industry, Ardmore Shipping (ASC) is expected to report earnings of $0.15 per share, indicating a year-over-year decline of 83.7% [17]. - Ardmore Shipping's consensus EPS estimate has been revised 37.8% lower in the last 30 days, leading to an Earnings ESP of -10.35% [18].

Financial Data and Key Metrics Changes - The company generated adjusted net income of approximately $82 million in Q4 2024 [3] - Total liquidity stands at around $940 million after repaying a fixed-rate bond of $100 million and redeeming Series EBITDA stock of $115 million [3][9] - Annual net income was above $290 million, with adjusted net income around $330 million [5][6] Business Line Data and Key Metrics Changes - In the container ship sector, the company charted 12 containerships with an average time charter duration of about 2.5 years, resulting in estimated contracted revenues of close to $330 million [4][6] - The contingency fleet employment stands at 96% for 2025 and 69% for 2026, with total contracted revenues amounting to $2.4 billion and a remaining time charter duration of about 3.4 years [4][6] - Charter rates in the dry bulk market dropped to their lowest levels in 2024 during the last quarter, continuing into 2025 [4][11] Market Data and Key Metrics Changes - The idle fleet remains low at around 0.6%, while the order book starts at approximately 11% of the total fleet [10][11] - The easing of congestion and pressures in the China steel market have resulted in tonnage oversupply in the dry bulk sector [4] Company Strategy and Development Direction - The company aims to renew its owned fleet and increase its average size, having acquired one Capesize and two Ultramax vessels while disposing of one Handysize and agreeing to sell one Panamax vessel [4][5] - The company views vessel owning and trading as complementary activities and maintains a long-term commitment to the sector [5] Management's Comments on Operating Environment and Future Outlook - Management noted that the current dry bulk market is weak, with expectations for a better market in the future based on the forward curve [14][15] - The company plans to maintain a balanced book in its CBI operations, taking long or short positions based on market conditions [16][20] Other Important Information - The company has secured financing of approximately $340 million for 36 of the 38 dry bulk vessels it currently owns, improving funding costs and extending maturities [8] - The Neptune maritime leasing platform continues to grow, with total investments and commitments exceeding $500 million [5][9] Q&A Session Summary Question: Contribution from CBI in Q4 and future profit expectations - Management indicated that the contribution from CBI would be detailed in upcoming segmental reporting, and the dry bulk market's current softness may affect future contributions [13][17][18] Question: Chartering discussions on container ships and effects on rates - Management stated that discussions for the 12 chartering agreements occurred before recent announcements, and currently, there is no pressure on charter rates [23][24][25] Question: Pipeline and future investments in Neptune maritime leasing - Management confirmed a healthy pipeline for Neptune, with future investments dependent on the leverage received and the attractiveness of potential transactions [26][28]

COSTAMARE INC. Consolidated Balance Sheets As of December 31, 2023 and June 30, 2024 (Expressed in thousands of U.S. dollars) | | | December 31, 2023 | | June 30, 2024 | | --- | --- | --- | --- | --- | | ASSETS | | (Audited) | | (Unaudited) | | CURRENT ASSETS: | | | | | | Cash and cash equivalents (Note 1) | $ | 745,544 | $ | 894,915 | | Restricted cash (Note 1) | | 10,645 | | 7,528 | | Margin deposits (Note 22(d)) | | 13,748 | | 10,840 | | Accounts receivable, net (Note 3) | | 50,684 | | 65,682 | | Invento ...