Costamare Q4 2024 Earnings Report

Evolent Health EPS Results

• Actual EPS: $0.69
• Consensus EPS: $0.66
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Evolent Health Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $404.27 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Evolent Health Announcement Details

• Quarter: Q4 2024
• Date: 2/5/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, February 5, 2025
• Conference Call Time: 8:30AM ET

Evolent Health (NYSE:EVH), through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

Dimeco Q4 2024 Earnings Call Transcript

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Costa Mare Inc. Conference Call on the Fourth Quarter twenty twenty four Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. At this time, all participants are in listen only mode.

[Operator]

There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today, Wednesday, 02/05/2025. We would like to remind you that this conference call contains forward looking statements. Please take a moment to read Slide number two of the presentation, which contains the forward looking statements. We'll pause one moment.

[Operator]

Thank you. I will now pass the floor over to your speaker today, Mr. Zikos. Please go ahead, sir.

[Gregory Zikos, CFO & Director at Costamare]

Thank you, and good morning, ladies and gentlemen. During the fourth quarter of the year, the company generated adjusted net income of about $82,000,000 Our liquidity stands at around $940,000,000 after repaying during the year a fixed rate bond of $100,000,000 and also redeeming the Series EBITDA first stock of $115,000,000 In the container ship sector, the currency crisis led to diversions via the much stronger CapExulfo's whole crude. These diversions, together with strong cargo demand, absorbed the incremental newbuilding capacity. The commercial hydro fleet remained low during 2024 and at the start of 'twenty five. Should, however, liners gradually return the stress route, the release of tonnage combined with newbuilding capacity could potentially distort the current supply and demand dynamics.

[Gregory Zikos, CFO & Director at Costamare]

During this quarter, we charted on a forward basis 12 containerships with an average time charter duration of about two point five years and estimated contracted revenues of close to $330,000,000 The contingency fleet employment stands at 9669% for 20252026% respectively. Total contracted revenues amount to $2,400,000,000 with a remaining time charter duration of about three point four years. On the drybulk market, charter rates dropped to their lowest levels of 2024 during the last quarter and have started 2025 on a similarly soft note. The easing of congestion along with pressures in the China steel market and less crane demand have resulted in tonnage oversupply. As per our strategy to renew the owned fleet and also increase its average size, during the quarter, we concluded the acquisition of one Capesize and two Ultramax vessels, as well as the disposal of one Andesize ship, while we have agreed to sell one Panamax vessel.

[Gregory Zikos, CFO & Director at Costamare]

CBI today manages a fleet of 51 ships, the majority of which are on index linked chartering agreements. As mentioned in the past, we have a long term commitment to the sector and we view the vessel owning and the trading platform as highly complementary activities. Finally, with regards to Neptune maritime leasing, the platform continues to grow with a healthy pipeline, having total investments and commitments exceeding $500,000,000 Moving now to the slide presentation. On Slide three, you can see our annual results. Net income was above $290,000,000 or $2.44 percent.

[Gregory Zikos, CFO & Director at Costamare]

Adjusted net income was around $330,000,000 or $2.76 percent. Our liquidity stands above $940,000,000 Slide four. On the chartering side, we got charter on a forward basis 12 containerships with incremental contracted revenues of around $330,000,000 Our revenue days are fixed 96% for '25 and sixty nine percent for '26, while our contracted revenues are $2,400,000,000 with a DU weighted remaining duration of three point four years. As you will notice, we have charter 03/1996 build vessels for period at healthy rates. Turning to Slide five.

[Gregory Zikos, CFO & Director at Costamare]

Regarding our SMPI activity, we have concluded the acquisition of one Capesize and one Ultramax drybulk and two Ultramax drybulk vessels. In parallel, we have concluded the sale of one Handysize ship and agreed to sell one Panamax vessel. Slide six. We have concluded the financing for a total amount of circa $340,000,000 with respects to 36 of the 38 drybulk vessels we currently own. The new financings provide us with improved funding costs and extension of maturities.

[Gregory Zikos, CFO & Director at Costamare]

In addition, we have secured a new handling license of $100,000,000 for financing of the acquisition of drybulk vessels. Slide seven, regarding CPI. We have started in 51 period vessels with the majority of the fleet being on index linked agreements. On our leasing platform, we have already invested around $123,000,000 Slide eight. Our liquidity starts above $940,000,000 This liquidity gives us the ability to look for opportunities to grow the company on a healthy basis.

[Gregory Zikos, CFO & Director at Costamare]

Moving to Slide nine. Travel rates in the contingency market remain at firm levels. The continued injection of newbuilding capacity along with rerouting via the Red Sea and Suez Canal may however affect current market dynamics. The idle fleet remains at low levels at around 0.6%. And finally, on Slide 10, you can see the recent drybulk market trends in the spot and forward markets.

[Gregory Zikos, CFO & Director at Costamare]

Charter rates have extended their decline from Q4 'twenty four into the first quarter of twenty twenty five. The order book starts at around 11% of the total fleet. With that, we can conclude our presentation, and we can now take questions. Thank you. We can take questions now.

[Operator]

We will now begin the question and answer session. Our first question today comes from Ben Nolan of Stifel. Please go ahead.

[Benjamin Nolan, Managing Director at Stifel Financial Corp]

Thank you, operator. Good morning, Greg. I wanted to ask really maybe a couple of questions about CVI really. And it's, first of all, can you give any sense as to what the contribution was in the fourth quarter from CBI? And then maybe more importantly, as we look forward given where the drybulk market is at the moment, given sort of where the forward curve is, Any sense as to sort of what you would imagine the profit or the contribution from that business would be like in the should the market remain sort of soft as it is at the moment over the course of the year?

[Gregory Zikos, CFO & Director at Costamare]

Yes. A couple of things. First of all, let me start from the last regarding the weak market where it is today. It is with today. I mean, it started from Q4 of 'twenty four and this is the case for Q2 'twenty five.

[Gregory Zikos, CFO & Director at Costamare]

At the same time, there is some seasonality bit in there, which it remains to be seen the forward curve. They are pointing to a better market going forward. However, CBI can also take long and short positions. I mean, we are by default long in the owning of the vessels of the 38 drybulk ships we own. So CBI can either be long or sort of it can be short depending on the circumstances.

[Gregory Zikos, CFO & Director at Costamare]

The goal for CBI, because by default this business is very volatile, is to have a balanced book, at the same time take some positions, either short or long depending on the circumstances. And we as mentioned in my commentary, we view it as a complementary activity to the owning side. We don't aim going forward, we don't aim to take big positions at the CBI level, except when like we have a conviction where the conditions justify those big positions. Otherwise, we will be taking a view on the market. However, it's going to be on a more balanced approach.

[Gregory Zikos, CFO & Director at Costamare]

For the owning vessels, as you've seen like by default, as mentioned, we are long. We do have we are selling all the ships and smaller vessels and we are focusing on large asset specialty games. And depending on the market conditions, we may continue doing so. The goal is like whatever equity we are releasing from the vessels that we dispose of, buying hopefully at low market levels younger ships with larger doughnuts. Now regarding the contribution of CBI and the same applies for the drybulk owned fleet and for the containers, I'm afraid you will have to wait in our segmental reporting in the six K.

[Gregory Zikos, CFO & Director at Costamare]

This is something that we will be providing some information on them relatively soon. So if you bear with me, the full information available will be there, if that's okay with you.

[Benjamin Nolan, Managing Director at Stifel Financial Corp]

Okay. Yes. No, that's helpful. And just to clarify, the for 2025, you expect the CBI chartered in fleet to be roughly net neutral. So there's no sort of currently, there's no position either long or short?

[Gregory Zikos, CFO & Director at Costamare]

Today, we have a position. We have a position. And as we move ahead, those positions, we may close them depending on market conditions. We do have a position now. But I mean, in general, our goal is first to have a balanced book and then going forward, maintain that balanced book and of course take some positions because this is part of the business.

[Gregory Zikos, CFO & Director at Costamare]

But those positions are going to be on a more balanced approach. It could be shorter. And we wouldn't expect to take long positions without having, as mentioned, a conviction that conditions justify those bets. So compared to how CBI was operating at initiation a couple of years ago going forward, we would expect this to have a much more balanced approach, which makes sense.

[Benjamin Nolan, Managing Director at Stifel Financial Corp]

Okay. And you said you had a position, at the moment, it's a net long or short?

[Gregory Zikos, CFO & Director at Costamare]

In the moment, it's long. I mean, depending for Capes and for Panamaxes, it's long, but this is a position which I mean, it is a long position, but it goes for period. So it's something that we cannot work on over the next quarters.

[Operator]

Our next question comes from Clement Mullins of Value Investors Edge. Please go ahead.

[Clement Mullins, Analyst at Value Investment Group]

Good afternoon. Thank you for taking my questions. I wanted to start by asking about how chartering discussions have evolved on the container ship side over the past few weeks as the normalization of the Red Sea seems closer. Some liners have announced they do not plan to return to the Red Sea in the near term. But have you seen an effect on rates and durations when discussing potential contracts?

[Gregory Zikos, CFO & Director at Costamare]

Yes. Thank you for the question. First of all, the 12 charting agreements we have now disclosed, discussions took place some months ago before the announcement of the ceasefire. So this is something which those things, it takes time to conclude. So these were discussed two to three months ago.

[Gregory Zikos, CFO & Director at Costamare]

However, coming to where we are today, up to now, and it is a bit premature, I would say, we don't see any pressure in charter rates, not at all. So and the normalization of the trade routes through the Suez Canal, it may take some time. So we will just sit and wait. I cannot predict to highlight where we are going to be back to normality, what is going to be over the next two, three, four quarters sooner or later. It is quite a fragile situation.

[Gregory Zikos, CFO & Director at Costamare]

So for the time being, charter rates and asset values hold at levels similar to the levels we saw some months or some quarters ago.

[Clement Mullins, Analyst at Value Investment Group]

That's helpful. Thank you. I also wanted to ask about Neptune maritime leasing. Your investment in the company has been stable over the past few quarters. Could you talk a bit about the pipeline Neptune has and whether you plan additional investments over the coming quarters?

[Gregory Zikos, CFO & Director at Costamare]

Yes. There is a pipeline. As I said, it has a pipeline I mean, current financing with a total with future commitments, it is in total close to 500,000,000 Now our cash outflow or our investment to Neptune, it's also a function of what levels of back leverage Neptune will be receiving, whether the Neptune funding, it's going to be 100% with equity from the shareholders and or with bad leverage from other financial institution, which is something we take it on a case by case basis. So I'm afraid I cannot provide with any prediction about how much additional equity as shareholders we're going to be putting to Neptune, which depends on the levers we're going to be getting. But there is a pipeline.

[Gregory Zikos, CFO & Director at Costamare]

There are currently deals not yet committed, but under discussion. And whenever we feel that transactions make sense, we are more than willing to utilize our equity. And if we can optimize our returns with additional back leverage, this is something we will consider as well.

[Clement Mullins, Analyst at Value Investment Group]

Makes sense. Thanks for the color. That's all from me. Thank you for taking my questions.

[Gregory Zikos, CFO & Director at Costamare]

Thank you.

[Operator]

This concludes our question and answer session. I would like to hand things back over to Mr. Zikos for any closing remarks.

[Gregory Zikos, CFO & Director at Costamare]

Thank you all for dialing in today's call. We are looking forward to speaking with you again in the next quarterly results call. Thank you.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Analysts

• Gregory Zikos, CFO & Director at Costamare
• Benjamin Nolan, Managing Director at Stifel Financial Corp
• Clement Mullins, Analyst at Value Investment Group