Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Income (Note 1) (In thousands of United States Dollars, except number of units and earnings per unit) For the three-month period For the years ended ended December 31, December 31, 2010 2009 2010 2009 ---------- ---------- ---------- ---------- Revenues $ 24,859 $ 32,512 $ 113,562 $ 134,519 Revenues - related party 4,146 - 11,030 - ---------- ---------- ---------- ---------- Total Revenues 29,005 32,512 124,592 134,519 ---------- ---------- ---------- ---------- Expenses: Voyage expenses 1,170 810 7,009 3,993 Vessel operating expenses - related party 7,940 8,420 30,261 30,830 Vessel operating expenses - 499 1,034 2,204 General and administrative expenses 1,270 632 3,506 2,876 Vessel depreciation 8,116 7,697 31,464 30,685 ---------- ---------- ---------- ---------- Operating income 10,509 14,454 51,318 63,931 ---------- ---------- ---------- ---------- Other income (expense), net: Interest expense and finance cost (8,331) (8,462) (33,259) (32,675) Interest and other income 212 270 860 1,460 ---------- ---------- ---------- ---------- Total other (expense), net (8,119) (8,192) (32,399) (31,215) ---------- ---------- ---------- ---------- Net income 2,390 6,262 18,919 32,716 ---------- ---------- ---------- ---------- Less: Net income attributable to CMTC operations - (986) (983) (3,491) ---------- ---------- ---------- ---------- Partnership's net income $ 2,390 $ 5,276 $ 17,936 $ 29,225 ========== ========== ========== ========== General Partner's interest in Partnership's net income $ 48 $ 106 $ 359 $ 584 Limited Partners' interest in Partnership's net income $ 2,342 $ 5,170 $ 17,577 $ 28,641 Net income per unit: -- Common units(basic and diluted) 0.06 0.21 0.54 1.15 -- Subordinated units (basic and diluted) - - - 1.17 -- Total units(basic and diluted) 0.06 0.21 0.54 1.15 ---------- ---------- ---------- ---------- Weighted-average units outstanding: -- Common units (basic and diluted) 37,150,983 24,817,151 32,437,314 23,755,663 -- Subordinated units (basic and diluted) - - - 1,061,488 -- Total units(basic and diluted) 37,150,983 24,817,151 32,437,314 24,817,151 Capital Product Partners L.P. Unaudited Condensed Consolidated Balance Sheets (Note 1) (In thousands of United States Dollars) December 31, December 31, 2010 2009 ------------ ------------ Assets Current assets Cash and cash equivalents $ 32,471 $ 3,552 Short-term investments - 30,390 Trade accounts receivable 2,305 1,217 Due from related party 2 13,365 Inventory 83 466 Prepayments and other assets 278 584 ------------ ------------ Total current assets 35,139 49,574 ------------ ------------ Fixed assets Vessels, net 707,339 703,707 ------------ ------------ Total fixed assets 707,339 703,707 ------------ ------------ Other non-current assets Deferred charges, net 2,462 3,147 Above market acquired bare-boat charter 8,062 - Restricted cash 5,250 4,500 ------------ ------------ Total non-current assets 723,113 711,354 ------------ ------------ Total assets $ 758,252 $ 760,928 ------------ ------------ Liabilities and stockholders' equity / partners' capital Current liabilities Current portion of long-term debt $ - $ - Current portion of related party long-term debt - 4,412 Trade accounts payable 526 778 Due to related parties 4,544 4,939 Accrued liabilities 898 2,470 Deferred revenue 3,207 3,456 ------------ ------------ Total current liabilities 9,175 16,055 ------------ ------------ Long-term liabilities Long-term debt 474,000 474,000 Long-term related party debt - 43,528 Deferred revenue 2,812 2,062 Derivative instruments 32,505 36,931 ------------ ------------ Total long-term liabilities 509,317 556,521 ------------ ------------ Total liabilities 518,492 572,576 ------------ ------------ Commitments and contingencies ------------ ------------ Stockholders' equity - 31,224 Partners' capital 239,760 157,128 ------------ ------------ Total liabilities and stockholders' equity / partners' capital $ 758,252 $ 760,928 ------------ ------------ Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Cash Flows (Note 1) (In thousands of United States Dollars) For the year ended December 31, 2010 2009 Cash flows from operating activities: Net income $ 18,919 $ 32,716 Adjustments to reconcile net income to net cash provided by operating activities: Vessel depreciation 31,464 30,685 Amortization of deferred charges 552 456 Amortization of above market acquired bare-boat charter 938 - Equity compensation expense 782 - Changes in operating assets and liabilities: Trade accounts receivable (2,717) 5,381 Due from related parties 6 (1,795) Prepayments and other assets 230 (2) Inventory 237 (264) Trade accounts payable 118 507 Due to related parties (570) 4,460 Accrued liabilities (409) 271 Deferred revenue 501 147 ----------- ----------- Net cash provided by operating activities 50,051 72,562 ----------- ----------- Cash flows from investing activities: Vessel acquisitions (99,842) (26,460) Acquisition of above market bare-boat charter (9,000) - Purchase of short-term investments (81,729) (111,850) Maturity of short-term investments 112,119 82,540 Increase in restricted cash (750) - ----------- ----------- Net cash (used in) investing activities (79,202) (55,770) ----------- ----------- Cash flows from financing activities: Proceeds from issuance of Partnership units 105,273 - Expenses paid for issuance of Partnership units (1,533) - Proceeds from related party debt - 26,400 Payments of related party debt/financing (1,556) (52,171) Loan issuance costs - (725) Excess of purchase price over book value of vessels acquired from entity under common control (10,449) - Distributions paid (33,665) (70,463) Capital contributions by CMTC - 40,570 ----------- ----------- Net cash provided by / (used in) financing activities 58,070 (56,389) ----------- ----------- Net increase / (decrease) in cash and cash equivalents 28,919 (39,597) Cash and cash equivalents at beginning of period 3,552 43,149 ----------- ----------- Cash and cash equivalents at end of period $ 32,471 $ 3,552 ----------- ----------- Supplemental cash flow information Cash paid for interest $ 31,860 $ 31,548 Non-cash activities Net book value of vessels transferred-in, M/T Agamemnon II and M/T Ayrton II less cash paid. - $ 68,054 Net book value of vessels transferred-out, M/T Assos and M/T Atrotos - $ (70,496) Reduction in deferred offering expenses $ 107 - Change in payable offering expenses $ 31 - Capitalized vessel costs included in liabilities $ 175 $ 870 Net liabilities assumed by CMTC upon vessel contribution to the Partnership $ 31,844 $ 31,073Notes (1) The unaudited condensed consolidated statements of income for the three-month and years ended December 31, 2010 and 2009 and the unaudited condensed consolidated statements of cash flows for the years ended December 31, 2010 and 2009 include the results of operations of M/T Alkiviadis and M/T Atrotos which were acquired from Capital Maritime, an entity under common control (at the time of the acquisition), on June 30, 2010 and March 1, 2010, respectively, as though the transfer had occurred at the beginning of the earliest period presented. The unaudited condensed consolidated balance sheet as of December 31, 2009 includes the balance sheets of the vessel-owning companies of M/T Atrotos and M/T Alkiviadis.
Appendix A - Reconciliation of Non-GAAP Financial Measure (In thousands of U.S. dollars)Description of Non-GAAP Financial Measure - Operating Surplus Operating Surplus represents net income adjusted for non cash items such as depreciation and amortization expense, unearned revenue and unrealized gain and losses. Replacement capital expenditures represent those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, the Partnership's capital assets. Operating Surplus is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Partnership's performance required by accounting principles generally accepted in the United States. The tables below reconcile Operating Surplus to net income for the three-month period ended December 31, 2010.
For the three-month period ended Reconciliation of Non-GAAP Financial Measure - December 31, Operating Surplus 2010 Net income $ 2,390 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 8,838 Deferred revenue 801 ----------- NET CASH PROVIDED BY OPERATING ACTIVITIES 12,029 ----------- Replacement Capital Expenditures (2,985) ----------- OPERATING SURPLUS 9,044 ----------- Recommended reserves (41) ----------- AVAILABLE CASH $ 9,003 -----------
Contact Information: Contact Details: Capital GP L.L.C. Ioannis Lazaridis CEO and CFO +30 (210) 4584 950 E-mail: i.lazaridis@capitalpplp.com Investor Relations / Media Matthew Abenante Capital Link, Inc. (New York) Tel. +1-212-661-7566 E-mail: cplp@capitallink.com Capital Maritime & Trading Corp. Jerry Kalogiratos +30 (210) 4584 950 j.kalogiratos@capitalpplp.com