EX-12.1 6 c90630_ex12-1.htm

Exhibit 12.1

 

RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

The following table shows our unaudited ratios of earnings to (a) fixed charges and (b) fixed charges and preferred stock dividends for each of the preceding five fiscal years.

 

   For the years ended December 31, 
   2017   2016   2015   2014   2013 
   (in thousands of US dollars) 
Earnings                         
Net income   72,876    81,702    143,764    115,087    103,087 
Plus: Fixed charges   76,721    73,687    78,766    90,868    77,509 
Amortization of capitalized interest   896    896    896    782    209 
Distributed income of equity investees   3,040    439    -    3,949    - 
Loss / (Income) of equity investees   (3,381)   78    529    3,428    (692)
Less: Loss from equity method investees with guarantee debt   (3,316)   (2,482)   -    (153)   - 
Interest capitalized   -    -    -    (1,795)   (11,098)
Total Earnings   146,836    154,320    223,955    212,166    169,015 
                          
Fixed charges                         
Interest expenses and capitalized   67,318    70,117    76,870    86,746    75,940 
Interest expense of loss making equity investees with guaranteed debt   7,167    957    -    15    - 
Amortization and write-off of capitalized expenses relating to indebtedness   2,236    2,613    1,896    4,107    1,569 
Total fixed charges   76,721    73,687    78,766    90,868    77,509 
                          
Fixed charges and preferred stock dividends                         
Preferred stock dividends   21,063    21,063    17,903    11,909    1,536 
Total fixed charges and preferred stock dividends   97,784    94,750    96,669    102,777    79,045 
                          
Ratio of Earnings to Fixed Charges(1)   1.91    2.09    2.84    2.33    2.18 
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends(1)   1.50    1.63    2.32    2.06    2.14 

 

(1) For purposes of calculating the ratios above:

 

·           “earnings” consist of pre-tax income from continuing operations before adjustment for equity investees (which include non-cash unrealized gains and losses on derivative financial instruments) plus fixed charges, net of capitalized interest and capitalized amortization of deferred financing fees, amortization of capitalized interest, distributed income of equity investees, less loss from equity investees with guaranteed debt;

 

·           “fixed charges” represent interest incurred (whether expensed or capitalized), interest expense of loss-making, equity investees with guaranteed debt and amortization of deferred financing costs (whether expensed or capitalized) and accretion of discount. Costamare is guarantor for the debt (including sale and leaseback transactions) of certain equity investees; and

 

·           “preferred stock dividends” refers to the amount of pre-tax earnings that is accrued for dividends on outstanding preferred stock. Beginning on August 6, 2013, we had 2,000,000 shares of Series B Preferred Stock outstanding, beginning on January 21, 2014, we had 4,000,000 shares of Series C Preferred Stock outstanding and beginning on May 13, 2015, we had 4,000,000 shares of Series D Preferred Stock outstanding. Our 4,600,000 shares of Series E Preferred Stock were issued on January 30, 2018 and thus have no impact on the table above.