Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2014 Earnings Presentation
25 slides from Euroseas's earnings presentation, Nov 11, 2014
Slide 1: Earnings Presentation: Three- and Nine-Month Periods Ended September 30, 2014
Earnings Presentation Three- And Nine-Month Periods Ended September 30, 2014 November 11, 2014
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: 2014 Third Quarter & Nine Month Overview
2014 Third Quarter & Nine Month Overview • Financial Highlights - 2014: Third Quarter Nine Months Net Revenues $9.9 m $29.1 m Net Loss ($3.7) m ($11.0) m Adj. Net Loss Available to ($4.1) m ($0.07)/ ($12.0) m ($0.22) / Common Shareholders(1) share(2) share(2) Adj. EBITDA(1) ($0.2) m ($0.8) m (1) See
Slide 4: Operational Highlights
Operational Highlights Operational Highlights: Employment extensions on up to 13-month charters Containerships Despina P: Extended for 6-8 months at USD 6,950/day. Captain Costas: Extended for 11-13 months at USD 7,750/day. Joanna: Ballasted from West Coast Central America to Shanghai for
Slide 5: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Built / Year Name Type DWT TEU To be built Acquired Newbuilding Program Hull No YZJ1116 Kamsarmax 82,000 2015 2014 Hull No YZJ1153 Kamsarmax 82,000 2016 2014 Hull No DY160 Ultramax 63,500 2015 2013 Hull No DY161 Ultramax 63,500 2016 2013 Vessels in the w
Slide 6: Euromar Joint Venture
Euromar Joint Venture Original capital commitment has been contributed: Name Type DWT TEU Built AKINADA BRIDGE Post Panamax 71,366 5,600 2001 Total capital invested CAP EGMONT Intermediate 41,850 3,091 2007 $175m .. ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 ..of which $25m are from EM A
Slide 7: Market Overview
Market Overview
Slide 8: Market Highlights - 2014 Q3
Market Highlights - 2014 Q3 Bulkers The BDI increased from 732 points it was during our Q2 presentation to a level of between 1,400 to 1,500 points during the past week. Spot: Capes dropped from about $13,500/day down to $12,500/day and recently recovered to about $26,000/day. Panamaxes start
Slide 9: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook Beginning of Year m dwt 53% 160 orderbook (yellow bar) m dw t 400 For delivery in 380 140 14/15/16+as of Sep-14): 360 340 Cape 49132/190 320 172.0 120 Panamax 135/176/133 300 280 11.1% H/S/Umax 168/343/290 260
Slide 10: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU For delivery in 7.2 37.4 % 14/15/16+(as of Sep- 6.8 34.2% 2,2 m m teu 14 6.4 Ppmx 48/159/84 6.0 2,0 9.8% 5.6 Pmx 3000+ 3/1/1 1,8 9.5% 5.2 2-3000 7/25/39 4.8 1.76 1,6 9.4% 5.6% 6.1% 1-2000 20/2
Slide 11: World Economic Growth
World Economic Growth U.S. is the growth engine with volatility, Europe risks deflation and uncertainties globally remain. Positives: The US and the UK appear to be leaving the crisis behind. Pro-business government elected in India and return of confidence, the only country to see an upward revisi
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2010 2011 2012 2013 2014 2015 2016 USA 2.8 (2.7) 1.8 (3.0) 2.8(1.8) 1.9 (1.2) 2.2 (1.7) 3.1 (3.0) 3.0 (3.0) Eurozone 1.8 (1.0) 1.5 (1.5) -0.7 (-0.5) .-0.5 (-0.4) 0.8 (1.1) 1.3 (1.5) 1.7 (1.5) Japan 4.3 (1.7) -0.6 (1.7) 1.4(1.7) 1.5 (2.0) 0.9
Slide 13: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Rate outlook is uncertain. In 2015, we expect average rates to decline (the FFA market is now at $8,850/day for Panamax Cal-2015); 2016 currently looks as it will be similar to 2016 as supply and demand growth look fairly balanced since… Risk of over-ord
Slide 14: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand prospects to improve in 2015 and 2016 by 6-7% but we lack strong conviction in view of the “fragile” economic environment. With no new incremental deliveries expected for 2015 and very few for 2016, we expect a supply/demand ba
Slide 15: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 16: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 95% in 2014 basis max durations (includes ships on index charters) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 MONICA P $7,500 EIRINI P dd $9,000 ELENI P 9
Slide 17: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: 72% in 2014 and 24% in 2015 (based on min duration) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 AGGELIKI P $6,000 $6,950 $6,900 MARINOS $7,150 $7,15
Slide 18: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 Operational fleet utilization rate in excess of 98.5% 9,000 over last 5 years. 8,000 7,000 Outstanding safety and environmental record. 6,000 $ / day For 2014Q3, operational fleet utilization 100.0% 5,000 4,000 and co
Slide 19: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate $m 10-yr old Price Historical Range $/day 90 90,000 80 M ax, 2 0 0 0 - 2 0 14 80,000 Panamax 75,000 dwt A ver ag e, 2 0 0 0 - 2 0 14 70 70,000 Containership 1700 teu M in, 2 0 0 0 - 2 0 14 60 C ur r ent , Oct - 14 60,000 50,000 50 4
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 3rd Quarter and First Nine Months of 2013 and 2014
Financial Highlights: 3rd Quarter and First Nine Months of 2013 and 2014 Third Quarter First Nine Months (in million USD except per change change share amounts) 2013 2014 % 2013 2014 % Net Revenues $9.0 $9.9 10.6% $29.5 $29.1 -1.3% Net Loss ($3.8) ($3.7) ($17.3) ($11.0) Preferred Dividends $0.0 ($0.
Slide 22: Fleet Data for 3rd Quarter and First Nine Months of 2013 and 2014
Fleet Data for 3rd Quarter and First Nine Months of 2013 and 2014 Fleet Statistics Third Quarter First 9 Months 2013 2014 2013 2014 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 14.28 15.00 14.75 14.47 Utilization Rate (%) Overall(1 ) 95.6% 99.4% 94.6% 99.5% Commercial(1 ) 97.3%
Slide 23: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 11/11/2014 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 1.2 2.2 2.4 2.4 $/vessel/day m illion $15 10.7 4.6 OPEX $ 5,900 $10 9.4 2.5 2.4 2.5 6.7 G&A $ 780 $5 10.1 8.8 8.3 5.7 2.6 2.5 Interest $ 550 $0
Slide 24: Balance Sheet & Other Data
Balance Sheet & Other Data Cash as of September 30, 2014: $ 42.2m $33.5m unrestricted – and about $8.7m of restricted funds and retention accounts. Debt: $57.5m as of September 30, 2014 Debt to Capitalization ratio about 35%. Debt to Market Value of Fleet ratio about 56% & Net debt to Mark
Slide 25: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. c/o Eurobulk Ltd 4, Messogiou & Evropis 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 Cante