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Box Ships Inc. Reports Fourth Quarter Ended December 31, 2011 Results

Friday, 17 February 2012 | 11:00
Box Ships Inc., a global shipping company specializing in the seaborne transportation of containers, announced yesterday its results for the fourth quarter of 2011 and for the period from its Initial Public Offering ("IPO") on April 14, 2011 to December 31, 2011 ("period ended December 31, 2011").Fourth Quarter 2011 - Financial Results: The Company reported time charter revenues for the fourth quarter of 2011 of $16.6 million, net of the amortization of above/below market time charters, which decreased our net income by $0.5 million, or $0.03 per share, and net income of $5.6 million, or $0.34 per basic and diluted share. EBITDA and Adjusted EBITDA for the fourth quarter of 2011 were $10.9 million and $11.5 million, respectively.
The Company operated an average of 7.00 vessels during the fourth quarter of 2011, earning an average time charter equivalent rate, or TCE rate, of $24,601 or $25,373 on an adjusted basis, per vessel per day. 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.
Total vessel operating expenses are comprised of vessel operating expenses, management fees charged by a related party and general and administrative expenses and amounted to $5.0 million for the fourth quarter of 2011, or approximately $7,734 per vessel per day.
Period ended December 31, 2011 - Financial Results:
The Company reported time charter revenues for the period ended December 31, 2011 of $39.1 million, net of the amortization of above/below market time charters, which decreased our net income by $1.0 million, or $0.07 per share, and net income of $13.0 million, or $0.83 per basic and diluted share. EBITDA and Adjusted EBITDA for the period ended December 31, 2011 were $25.6 million and $26.9 million, respectively.
The Company operated an average of 5.92 vessels during the period ended December 31, 2011, earning an average time charter equivalent rate, or TCE rate, of $24,363, or $25,043 on an adjusted basis, per vessel per day. 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.
Total vessel operating expenses for the period ended December 31, 2011 were $12.3 million, or approximately $7,907 per vessel per day, including vessel operating expenses, management fees charged by a related party and general and administrative expenses for the period.
Commenting on the results, Michael Bodouroglou, the Chairman, President and Chief Executive Officer of the Company, stated, "2011 was our first year as a public company and we demonstrated excellent vessel performance with a 100% vessel utilization rate since inception and strong operating results. Our net income for the fourth quarter of 2011 was $5.6 million, or $0.34 per share on a U.S. GAAP basis, and $6.2 million, or $0.38 per share on an adjusted basis, which supports our decision to declare a dividend of $0.30 per share for the quarter. Since our IPO, we have declared dividends totaling in aggregate $0.75 per share to our shareholders."
Mr. Bodouroglou concluded, "2012 will be a challenging year and we expect to face these challenges head on. We expect our charter coverage and our ongoing cost control measures will continue to fund our quarterly dividends, which as we have previously stated we expect to total $1.00 per share for the full year 2012."
Dividend Declaration:
The Company's Board of Directors declared a quarterly dividend of $0.30 per share, with respect to the fourth quarter of 2011, payable on or about March 2, 2012 to shareholders of record as of the close of business on February 27, 2012. This is the third consecutive quarterly dividend since the Company became a public company in April 2011.
The declaration and payment of a dividend will always be subject to the discretion of the Board of Directors of the Company, and will depend on, among other things, the Company's earnings, financial condition and cash requirements and availability, the covenants in the Company's existing and future debt instruments, global economic conditions and the provisions of Marshall Islands law.
Chartering Strategy:
Pursuant to our chartering strategy, we intend to focus on containerships with carrying capacities ranging from 1,700 TEU to 7,000 TEU employed on short- to medium-term time charters of one to five years with staggered maturities, which will provide us with the benefit of stable cash flows from a diversified portfolio of charterers, while preserving the flexibility to capitalize on potentially rising rates when the current time charters expire. Based on the latest redelivery dates, the Company has secured under such contracts 93% and 71% of its fleet capacity in 2012 and 2013, respectively.
Source: Box Ships Inc.
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