Euroseas Ltd. · NASDAQ:ESEA
Euroseas — FY2009 Earnings Presentation
24 slides from Euroseas's earnings presentation, Mar 2, 2010
Slide 1: Three Months & Year Ended December 31, 2009 Earnings Presentation
Three Months & Year Ended December 31, 2009 Earnings Presentation March 2, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may re
Slide 3: 2009 Fourth Quarter & Full Year Overview
2009 Fourth Quarter & Full Year Overview • Financial Highlights - 2009: Fourth Quarter Full Year Net Revenues $16.5 m $63.8 m Net Loss ($16.3) m ($0.53) / ($15.6) m ($0.51) / share(2) share(2) Adj. Net Income / ($4.8) m ($0.15) / ($2.7) m ($0.09) / (Loss)(1) share(2) share(2) Adj. EBITDA(1) $0.4 m $
Slide 4: 2009 At a Glance
2009 At a Glance 1-Year TC Rates 90,000 80,000 Panamax 72-75,000 dwt Containership 1700 teu 70,000 60,000 50,000 $ / day 40,000 30,000 20,000 10,000 0 2000-01 2002-01 2004-01 2006-01 2008-01 2010-01 Page 4
Slide 5: 2009: An Opportunity to Renew
2009: An Opportunity to Renew Took advantage of drop in prices to renew fleet at prices of about 35-40% of the levels prevailing in the summer of 2008 » Bought: • Monica P - blt ‟98 bulker for $18m (Feb-‟09) • Eleni P – blt ‟97 bulker for $18.5m (Mar-‟09) • Pantelis - - blt ‟00 bulker for $27.5m (Ju
Slide 6: Current Fleet
Current Fleet Size Year Acquisition Name Type DWT TEU Built Year Acq'd Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,119 - 1997 2009 Irini Panamax 69,734 - 1988 2002 Aristides NP Panamax 69,268 - 1993 2006 Monica P Handymax 46,667 - 1998 2009 Maersk Noumea Intermediate 34,677 2,556 2001 200
Slide 7: Euroseas Strategy – Costs & Funding
Euroseas Strategy – Costs & Funding • Focus on keeping operating costs low • One of the lowest cost structure amongst public companies • total operating costs including G&A in the fourth quarter: $5,471 / vessel / day (it would be about $600-650 more if laid-up vessels were operating) • Controlling
Slide 8: Company Investment Strategy Positioning for 2010 & Beyond
Company Investment Strategy Positioning for 2010 & Beyond » Plan to take advantage of investment opportunities in 2010 • By investing our own funds, and, • By partnering up with others to access larger opportunities » Planned Joint Venture with 2 private investment firms to invest in shipping • Have
Slide 9: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers 100% in 2010 / 40 % in 2011 IRINI Spot pool / 100% FFA-$10,950 $17,500 MONICA P Spot Pool / 100% FFA-$10,970 ELENI P. $15,350 100% FFA-$11,935 PANTELIS 25200/22500 $17,500 ARISTIDES N.P. $12,350 $18,900 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Physic
Slide 10: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage 45% in 2010 / 17% in 2011 Container Ship Vessels DESPINA P laid-up Multi-purpose Vessel JONATHAN P laid-up KUO HSIUNG $3,850 $3,850 $5,300 NINOS $3,900 MANOLIS P $3,850 $4,000 Contex less 10% CAPTAIN COSTAS $4,000 $4,250 $4,250 TIGER BRIDGE $7,500 $
Slide 11: Market Overview
Market Overview
Slide 12: Panamax & 1700 teu Containership Prices & 1-yr TC Rates
Panamax & 1700 teu Containership 10-yr Old Prices & 1-yr TC Rates 1-Year TC Rates Secondhand Price, 10-Year Old Vessels 90,000 90 Panamax 72-75,000 dwt 80,000 Panamax 72-75,000 dwt 80 Containership 1700 teu Containership 1700 teu 70,000 70 60,000 60 million USD 50,000 50 $ / day 40,000 40 30,000 30
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a.) 2006 2007 2008 2009 2010F 2011-13F USA 3.3 2.5 1.1 -2.5 (-2.7) 2.7(1.5) 3.4 (1.8) Eurozone 3.0 2.7 0.8 -3.9 (-4.2) 1.0 (0.3) 1.7 (1.8) Japan 2.8 1.9 -0.7 -5.3 (-5,4.) 1.7 (1.7) 2.7 (1.2) China 10.5 11.2 9.0 8.7 (8.5) 10.0 (9.0) 10.4 (8.6) India 9.
Slide 14: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 30.6% 140 27.4% 150.0 130 For delivery in 2010 140.0 (vessels): 130.0 120 120.0 110 Cape 321 110.0 59.5 100 Panamax 269 15.2% 63.00 100.0 90 H’max 380 90.0 17.3% 16.8% 80 Handies 300 80.0 70 70.
Slide 15: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.8 m TEU 17.0% 6.4 48 % 2.0 6.0 16.0% 5.6 10.3% 5.2 1.6 4.8 3.01 13 .8% 1.4 4.4 0.79 4.0 1.2 5.6% 3.6 22.6% 3.2 0.6 2.8 0.54 1.43 4.5% 2.4 15.6% 0.8 1.70 1.39 0.44 2.0 0.48 1.6 6.8% 0.
Slide 16: Market Trends & Opportunities – Bulkers
Market Trends & Opportunities – Bulkers » Emerging markets – primarily led by China – drive global economic recovery • Uncertainty of the strength of recovery in developed economies, especially, Europe ( PIIGS) • Other risks include quality of China‟s growth and intervention by the government to slo
Slide 17: Market Trends & Opportunities – Containerships
Market Trends & Opportunities – Containerships » Freight rates, charter rates and vessel prices almost at all time lows below operating cost levels • Although larger vessels seem to command higher charter rates lately • Container box rates have picked up substantially in several markets (mainly in t
Slide 18: Financial Overview
Financial Overview
Slide 19: Financial Highlights: 4th Quarter and Full Year 2008 and 2009
Financial Highlights: 4th Quarter of and Full Year 2008 and 2009 Fourth Quarter Full Year as as (in million USD except per adjusted(4) change adjusted(4) change share amounts) 2008 2009 % (3) 2008 2009 % (3) Net Revenues $23.6 $16.5 -30.2% $126.3 $63.8 -49.5% Net Income ($22.2) ($16.3) $21.5 ($15.6)
Slide 20: Fleet Data for 4th Quarter and Full Year 2008 and 2009
Fleet Data for 4th Quarter of and Full Year 2008 and 2009 Fleet Statistics Fourth Quarter Full Year 2008 2009 2008 2009 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.68 15.61 16.30 Utilization Rate (%) Overall(1 ) 96.0% 93.8% 98.0% 94.8% Commercial(1 ) 97.3% 94.7% 99.1%
Slide 21: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 3/1/2010 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX(1) $ 5,500 million $15 3.7 G&A $ 650 25.6 2.4 8.0 Interest $ 500 $10 13.8 1.0 2.2 9.6 Drydock $ 850 11.6 $5 8.4 7.1 4.8 Loan Rpmt(2) $ 2,5
Slide 22: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ December 31, 2009: $ 41.0 m • Also restricted cash of about $7.7 m » Debt: $71.5 m as of December 31, 2009 • Debt to Capitalization ratio about 23.6% » About $25-30 m equity to fund further growth • Double purchasing power when funds are coupled with conventional
Slide 23: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 40, Ag. Konstantinou Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Canterbu
Slide 24: Appendix
Appendix Please refer to the Company’s press release of March 1, 2010 for financial statements and reconciliation of Adjusted EBITDA and “Operating” EPS to Net Income and Cash Flow from Operations, as well as Reconciliation of Net Income to Adjusted Net Income Page 24