Costamare (CMRE)
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Costamare (CMRE), $213mm IPO with a market cap of $965mm, at price range midpoing of $16,
scheduled for Thursday, Nov 4 |
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Container ships |
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Athens, GR |
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SUMMARY |
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. Number of ships is down to 41, from 53 in 2008
. Six month revenue is down, net income is down
. Intends to pay a 6.25% annual dividend
. Three customers account for 73% of revenue
. Use of proceeds is unclear |
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BUSINESS |
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Container ships |
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DIVIDEND POLICY |
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. Intends to pay stockholders quarterly dividends of $0.25 per share, or $1.00 per share per year
. 6.25% annual rate |
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CUSTOMER CONCENTRATIO |
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. CMRE’s containership fleet is currently under time charters with eight different charterers.
. Three companies represented 73.9% of revenue in the first half of 2010.
. For the three years ended December 31, 2009, the three largest customers by revenue were A.P. Moller-Maersk, MSC and COSCO; together these three customers represented 77.3%, 71.1% and 73.7% of revenue in 2007, 2008 and 2009.
2008 REORGANIZATION |
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Costamare Inc. was incorporated on April 21, 2008 for the purpose of completing a reorganization of 53 ship-owning companies then owned by the chief executive officer and other members of the Konstantakopoulos family under a single corporate holding company. |
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PAID OUT $400MM in distributions |
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To buy 53 ships. The number of ships has dropped to 41 as of October 15, 2010 |
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. Since 2008 in relation to the reorganization process paid out distributions to existing stockholders of $400.0 million ($269.0 million of which was paid in 2008 and $131.0 million in 2009). |
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. No distributions were paid in the first half of 2010. |
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. The dividends and distributions paid during 2008, 2009 and the first half of 2010, were funded in part by borrowings and in part by cash from operation |
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USE OF PROCEEDS |
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$196mm |
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. General corporate purposes and potential future vessel acquisitions
. May use a portion of the net proceeds, together with debt financing, to fund contracted containership acquisitions |
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Costamare (CMRE) |
CMRE, C+, 6 |
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Post-IPO shares:60mm |
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Container ships |
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Athens, GR |
2007 |
2008 |
2009 |
June6mos09 |
June6mos10 |
IPO Mkt |
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Voyage revenues |
$307 |
$426 |
$400 |
$208 |
$179 |
Cap (mm) |
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Operating income % |
57% |
42% |
48% |
49% |
50% |
$965 |
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Interest % of operating income |
36% |
38% |
45% |
49% |
38% |
@$16 |
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Net income |
$115.0 |
$100.0 |
$117.0 |
$70.0 |
$46.0 |
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Net income % of revenue |
37% |
23% |
29% |
34% |
26% |
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Number of vessels |
46 |
53 |
47 |
50 |
43 |
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Number of vessels down to 41, as of Oct 15, 2010 |
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Valuation Ratios |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
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annualizing June 6 mos |
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
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Costamare |
$965 |
2.7 |
10 |
2.6 |
2.6 |
22% |
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SCORECARD |
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Mgt |
Market |
Market Do- |
Proprie- |
Total |
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1-5, 5 is high |
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Growth |
mination |
tary |
rating |
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20 is perfect |
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2 |
1 |
2 |
1 |
6 |
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