Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2019 Earnings Presentation
20 slides from Euroseas's earnings presentation, Nov 25, 2019
Slide 1: Earnings Presentation Nine Month Period & Quarter Ended September 30, 2019
Earnings Presentation Nine Month Period & Quarter Ended September 30, 2019 November 25, 2019
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: 2019 Third Quarter
2019 Third Quarter • Financial Highlights – 2019Q3: Third Quarter Net Revenues 10.3 m Net Loss ($0.16) m Preferred Dividends ($0.16) m Adj. Net Loss Available to Common (1) ($0.50) m ($0.02) / share(2) Shareholders Adj. EBITDA(1) $1.55 m (1) See press release of 11/25/2019 for reconciliation of Adj.
Slide 4: Chartering & Operational Highlights
Chartering & Operational Highlights Vessel Deliveries Took delivery of four vessels agreed to be acquired in May 2019 during August 2–7, 2019 ➢ EM Kea: 3,100 teu built 2007 with charter at 9,700/day until Mar-2020 ➢ EM Spetses: 1,740 teu built 2007 with charter at 7,000 until Feb-2020 ➢ EM Hydra: 1,
Slide 5: Fleet Expansion: Synergy Vessels Acquisition
Fleet Expansion: Synergy Vessels Acquisition ➢ Acquisition of four panamax (intermediate) size vessels of 4,253 teu built in South Korea one in 2008 and three in 2009 from Synergy Holdings Limited ➢ Acquired for $40m plus an additional $0.5m in shares in a year if market is stronger than current lev
Slide 6: Current Fleet Profile
Current Fleet Profile Size Year Name Type DWT TEU Built Akinada Bridge Intermediate 71,366 5,610 2001 Synergy Bussan Intermediate 50,726 4,253 2009 Synergy Antwerp Intermediate 50,726 4,253 2008 Synergy Oakland Intermediate 50,787 4,253 2009 Synergy Keelung Intermediate 50,969 4,253 2009 EM Kea Feed
Slide 7: Fleet Management & Operational Performance
Fleet Management & Operational Performance (1) Daily costs per vessel ➢ Operational Fleet utilization rate in excess of 97.6% 10,000 9,000 over last 5 years 8,000 ➢ Outstanding safety and environmental record 7,000 ➢ For 2019Q3, operational fleet utilization 99.9% and 6,000 $ / day commercial 100% 5
Slide 8: Vessel Employment
Vessel Employment Coverage (as of December 1 , 2019): Abt 100% for the remaining 2019 and 30% in 2020 (based on mid point durations) 2019 2020 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EM OINOUSSES $9.500 $8,700 EM CORFU
Slide 9: Containership Market Highlights – Q3 2019
Containership Market Highlights – Q3 2019 ➢ Time charter rates in Q3 for feeder and intermediate size vessels ranging from 1,000-5,600 teu rose abt 2% -70% on average in Q3, with the bigger rises in the above 4,000+ teu ships ➢ The 1,700 teu geared rates rose from an avg of $8,153 in Q2 to $8,795 in
Slide 10: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 USA 2.8 1.9 2.4 2.6 1.5 2.3 2.9 2.4 (2.6) 2.1 (1.9) 1.7 (1.8) Eurozone -0.7 .-0.5 0.9 2.0 1.8 2.4 1.8 1.2 (1.3) 1.4 (1.6) 1.4 (1.5) Japan 1.4 1.5 -0.1 0.5 1.0 1.8 1.0 0.9 (0.9) 0.5 (0.4) 0.5
Slide 11: Containership Age Profile & Orderbook Delivery
Containership Age Profile & Orderbook Delivery Containership Age Profile Container Orderbook m TEU m TEU 28 % 2,2 29% For delivery in 19/20/21+ 8 (as of Sep-19) 27% 6% of the fleet is 2,0 7 8000+ 7/51/48 over 20 years 1,8 8,5% 3-7,999 0/9/2 old 6 1,6 100-2,299 45/161/54 5 1,4 5.6% 5.6% 5.4% 1,2 3.6%
Slide 12: 1000-3000 teu Fleet Age Profile & Orderbook Delivery Schedule
1000-3000 teu Fleet Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU 7% m TEU 1,6 0.3 35% 1,2 17% of the 1-3,000 5.6% 0.168 teu fleet is over 0.2 aged!!! 0,64 0,8 0% 19% 0.13 0% 2.9% 15% 14% 0.2 13% -1.8% 0.06 0.1 2.2% 0.2 0,37 0.05 0,4 0,29 0,17 0.04 0,1
Slide 13: Outlook Summary
Outlook Summary ➢ 2019 has shown a modest increase in charter rates without expectations for significant changes in the remaining of the year… ➢ Our supply/demand analysis which is based on Clarkson’s expectations for container trade growth suggests a balanced market for 2020, firming up again in 20
Slide 14: Market Snapshot
Market Snapshot 1700 teu One-Year Time Charter Rate 10 Year Old Historical Price Range $m 35.000 40 30.000 Containership 1700 teu 35 25.000 30 Max Price, 2000-2018 Containership 1700 teu Median Price, 2000-2018 20.000 25 $ / day Min Price, 2000-2018 15.000 20 Current Price, Nov-19 10.000 15 5.000 10
Slide 15: Financial Overview
Financial Overview
Slide 16: Financial Highlights: Third Quarter and Nine Months of 2018 and 2019
Financial Highlights: Third Quarter and Nine Months of 2018 and 2019 Euroseas Continuing Operations Third Quarter Change Nine Months Change In million USD except per share amounts 2018 2019 % 2018 2019 % Net Revenues 8.3 10.3 23% 26.4 26.7 1% Net Income/(Loss) (0.9) (0.2) (0.1) (0.9) Preferred Divid
Slide 17: Fleet Data for Third Quarter and Nine Months of 2018 and 2019
Fleet Data for Third Quarter and Nine Months of 2018 and 2019 Fleet Statistics Third Quarter Nine Months 2018 2019 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 11.00 13.50 11.64 11.83 Utilization Rate (%) Overall(1) 88.5% 99.9% 93.3% 98.8% Commercial(1) 97.9% 100.0% 98
Slide 18: Debt Profile & Cash Flow Breakeven
Debt Profile & Cash Flow Breakeven $35 Balloon: $19.2m -9 vessels $30 Cashas Debt Flowof Breakeven 12/31/2018 Balloons: a) $6m - Astoria & Evridiki G (estimate for next 12 months) b) $6.2m - EM Spetses, EM $25 Hydra, EM Kea $/vessel/day c) $17.4m - 4 Synergy vessels OPEX $ 5,800 $20 G&A $ 550 Intere
Slide 19: Balance Sheet Highlights - Proforma for Acquisition of Synergy Vessels
Balance Sheet Highlights - Proforma for Acquisition of Synergy Vessels Euroseas Ltd Capital Structure Snapshop Assets (as of Nov-2019, Proforma) ➢ Cash & Other assets: $10.2m 160 ➢ Vessels book value: about $114.4m (proforma) ➢ roughly 10% lower than the estimated Net Cash & 140 other assets market
Slide 20: 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 / Judit Csepregi Chief Financial Officer Investor Relations Euroseas Ltd. Capital Li