Insurance claim pushed adjusted 2Q2020 EBITDA of $4.7 million above expectations. Excluding dry dock expenses, EBITDA of $4.7 million was $1.7 million ahead of our estimate. Reported adjusted EBITDA was $4.1 million, which excluded unamortized, below-market time charters acquired of $0.3 million and included derivative adjustments of $0.5 million. We also added back drydock expenses of $0.4 million to adjusted EBITDA. The insurance recovery of $2.7 million from a fire on the Oinousses had a positive impact on the quarterly results.Adjusting 2020 EBITDA estimate. Positive 2Q2020 variance more than offset soft container market fundamentals and scrapping activity. To reflect the positive 2Q2020 variance and current container market fundamentals, we are forecasting 2020 EBITDA of $13.1 million based on TCE rates of $9,220/day and operating days of 5,941, up from our previous estimate of $12.1 million based on TCE rates of $9,373/day. While forecasted TCE rates are modestly lower, the insurance recovery more than makes up the difference.Acquisition financings and refinancing pushed out maturities pushed out to 2023, but debt amortization relief was granted in 2Q2020. In 2Q2020, total debt approximated $85.0 million, down slightly from $89.0 million in 1Q2020. While debt amortization appears manageable, debt amortization relief was granted in 2Q2020. A total of $4.7 million of debt amortization was pushed out into December 2021 and 2022. Another $0.9 million of debt amortization relief is under discussion and seems likely to be deferred and added to the balloon payment due at maturity.Maintaining Outperform rating and price target of $6.35/share. While the past few months have been challenging and the container market has been weak, there are some signs that the market is firming and the recent stock price weakness (down 37% YTD) creates a favorable risk/reward profile.Read More >>