Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2016 Earnings Presentation
25 slides from Euroseas's earnings presentation, May 24, 2016
Slide 1: Earnings Presentation First Quarter March 31, 2016
Earnings Presentation First Quarter March 31, 2016 May 24, 2016
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: 2016 First Quarter Overview
2016 First Quarter Overview Financial Highlights First Quarter 2016: Net Revenues: $ 6.5 million Net Loss: $ (2.8) million Adj. Net Loss : (1) $ (2.6) million Adj. Net Loss to Common S’holders(2): $ (3.1) million, or, ($0.38)/share, basic & diluted Adj. EBITDA(1): $ (0.1) million Balance Sheet Highl
Slide 4: Operational Highlights
Operational Highlights Containerships Kuo Hsiung : Extended for 7/8 months @$6,900 Manolis P: Extended for 10/12 months @$6,800 Evridiki G: Extended for 24 months @$11,000 Bulkers Monica P: Fixed a 25 days trip @$4,350 Eleni P: Fixed a trip @$6,000 till June Vessel Sales – Q1 & Q2 20
Slide 5: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Name Type DWT TEU Built Newbuilding Program Hull No YZJ 117 Kamsarmax 82,000 2018 Hull No DY160 Ultramax 63,500 2016 Hull No DY161 Ultramax 63,500 2016 Sub Total - NBs 3 vessels 209,000 Vessels in the water Xenia P Kamsarmax 82,000 2016 Eirini
Slide 6: Euromar Joint Venture
Euromar Joint Venture Size Year Original capital commitment Name Type DWT TEU Built has been contributed, and AKINADA BRIDGE Post Panamax 71,366 5,600 2001 Euroseas currently holds CAP EGMONT Intermediate 41,850 3,091 2007 approx: ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM ASTORIA Interme
Slide 7: Market Overview
Market Overview
Slide 8: Market Highlights – First Quarter & April-May 2016
Market Highlights – First Quarter & April-May 2016 Bulkers: BDI moved from 473 points (Jan 4, 2016 ) to 429 points (March 31, 2016 ), however it reached 290 points in mid February before starting rising again. Within April the index soared to 659 points (April 18) with rates rising across all size
Slide 9: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m dwt m dwt 400 46% 120 380 360 11.1% 340 100 14.2% 320 11.9% 300 143.9 2.4% 280 16.0 80 260 % 41.8 240 31% 44.6 220 8% of the fleet 6.0% 200 is over 20 yrs 60 38.7 9.2% 26.3 180 92.6 old 22.1 4.9% 160 94.4 93
Slide 10: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m teu m TEU 2.0 8.5% 7.6 35.3 % 7.2 33.9% 1.8 6.8 6.8 6.4 1.6 6.3% % 6.0 9.4% 5.6% 5.6 1.4 6.1% 6.3% 5.2 1.84 8.4% 1.2 5.6% 4.9% 4.8 4.4 1.0 4.0 1.1 17.5% 0.84 1.91.57 3.6 0.8 0.54 3.2 0.52 1.384 1.
Slide 11: World Economic Growth
World Economic Growth World-wide uncertain economic trends amid adjustments in commodity and, especially, oil price levels, adjustment of China’s economy and resulting effects on commodity export economies Positives: Low oil price which should stimulate growth. Eurozone growth revised upward.
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 2018 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 2.5(3.6) 2.4 (2.6) 2.5(2.6) 2.4 Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 1.5(1.2) 1.5 (1.7) 1.6(1.7) 1.6 Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 0.6 (0.6) 0.5(1.0) -0.1(0.3)
Slide 13: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2016, after the worst quarter in drybulk shipping ever, appear to be improving amidst record scrapping and better than expected demand especially for Iron Ore (but also South American grains). If demand picks up in 2017 and half of th
Slide 14: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand to continue growing during 2016, however with the lowest growth rate ever recorded. Container Industry has entered maturing stage and growth rates of a growing industry of the past decades are not there any more. We expect a su
Slide 15: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 16: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 48% in 2016 basis min 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 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 ELENI P 97 % BPI 4-TC $5,250 $6K MONICA P $5
Slide 17: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 64 % in 2016 (based on min duration unless t/c rate is below market rate ) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec JanFebMar AprMay JunJul Aug Sep Oct Nov Dec 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16Q4 NINOS $8,400 DD $11,500 JOANNA
Slide 18: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 Operational fleet utilization rate in excess of 99.4% 9,000 over last 5 years. 8,000 Outstanding safety and environmental record. 7,000 6,000 $ / day For 2016Q1, operational fleet utilization 100.0% and 5,000 com
Slide 19: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day $m 90,000 90 Panamax 75,000 dwt M ax Pr ice, 2 0 0 0 - 2 0 15 80,000 80 Containership 1700 teu Avg Panamax Rate A ver ag e Pr ice, 2 0 0 0 - 70,000 70 Avg 1700teu 2 0 15 M in Pr ice, 2 0 0 0 - 2
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 1st Quarter of 2015 and 2016
Financial Highlights: : 1st Quarter of 2015 and 2016 First Quarter (in million USD except per change share amounts) 2015 2016 % Net Revenues $8.2 $6.5 -20% Net Loss ($5.4) ($2.8) Preferred Dividends ($0.4) ($0.4) Net Loss available to Common Shareholders ($5.8) ($3.3) Interest & Finance Costs $0.5 $
Slide 22: Fleet Data for 1st Quarter 2015 and 2016
Fleet Data for 1st Quarter 2015 and 2016 Fleet Statistics First Quarter 2015 2016 (unaudited) (unaudited) Number of vessels 15.00 11.54 Utilization Rate (%) Overall(1 ) 94.6% 93.7% Commercial(1 ) 94.7% 93.7% Operational(1 ) 99.9% 100.0% Averages in usd/day/vessel Time Charter Equivalent (TCE)(2 ) $
Slide 23: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven We successfully refinanced all the $10.7m balloons that were due in 2015 as well as a $3m balloon that was due in Q1 2016. As of today we only have a $6.4m balloon due in Q4 2016 that we plan to refinance within the course of the yea
Slide 24: Balance Sheet & Other Data
Balance Sheet & Other Data Total Cash(1) : $ 12.6 million $3.1m unrestricted – and about $9.5m of restricted funds and retention accounts Total Debt(1) : $55.0 million Debt to Capitalization ratio about 31%. Net debt to Market Value of Fleet ratio about 62% Capital commitments / drybulk
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