Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2015 Earnings Presentation
26 slides from Euroseas's earnings presentation, Nov 11, 2015
Slide 1: Earnings Presentation: Three- and Nine-Month Periods Ended September 30, 2015
Earnings Presentation Three- And Nine-Month Periods Ended September 30, 2015 November 11, 2015
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: 2015 Third Quarter & Nine Month Overview
2015 Third Quarter & Nine Month Overview • Financial Highlights - 2015: Third Quarter Nine Months Net Revenues $11.3 m $28.9 m Net Loss ($1.4) m ($10.1) m Adj. Net Loss Available to ($1.8) m ($0.29)/ ($11.3) m ($1.92) Common Shareholders(1) share(2) /share(2) Adj. EBITDA(1) $2.0 m $0.1 m (1) See pre
Slide 4: Funding of Fleet Expansion and Shareholder Rights' Offering Results
Funding of Fleet Expansion and Shareholder Rights’ Offering Results Drybulk vessel newbuilding program 2 Ultramaxes (63,000 dwt) and 2 Kamsarmxes (82,000 dwt). Delivery of the first three vessels – two Ultramax and one Kamsarmax- is expected in Q1/Q2 2016. Delivery of second Kamsarmax is expec
Slide 5: Operational Highlights
Operational Highlights Containerships Joanna : Fixed for 5-10 days at $9,000/day, then was idle for 43 days and subsequently fixed from November 2 to for 14-90 days at $7,850/day Aggeliki P: Extended for 30-110 days at $7,950/day Captain Costas: Fixed for 3-6 months at $8,500/day Kuo Hsiun
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Name Type DWT TEU Built Newbuilding Program Hull No YZJ Kamsarmax 82,000 2015 Hull No YZJ Kamsarmax 82,000 2016 Hull No DY160 Ultramax 63,500 2015 Hull No DY161 Ultramax 63,500 2016 Sub Total - NBs 4 vessels 291,000 Vessels in the water Eirini
Slide 7: Euromar Joint Venture
Euromar Joint Venture Name Type DWT TEU Built Original capital commitment has AKINADA BRIDGE Post Panamax 71,366 5,600 2001 been contributed, and Euroseas CAP EGMONT Intermediate 41,850 3,091 2007 currently holds approx: ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,6
Slide 8: Market Overview
Market Overview
Slide 9: Market Highlights – Third Quarter & Oct/Nov 2015
Market Highlights – Third Quarter & Oct/Nov 2015 Bulkers: BDI moved from 794 points (July 1, 2015 ) to 628 (November 9, 2015 ), peaking at 1,222 points on August 5, 2015 Daily Cape spot rates averaged $12,650 in Q3, Panamax spot rates averaged $7,543 and Supramax spot rates $8,370 but, subsequentl
Slide 10: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook For delivery in 160 m dwt 15/16/17+ as of Oct- m dwt 400 49% 8% of the fleet is 15): 380 over 20 yrs old 140 Cape 73/148/46 360 340 Panamax 93/176/68 320 120 H/S/Umax 186/334/118 300 154.6 Handies 114/182/106 2
Slide 11: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook For delivery in 15/16/17+(as of Oct- m TEU 35 % 35% 15 2.2 7.2 m teu Ppmx 39/81/120 6.8 2.0 Pmx 3000+ 9/4/22 6.4 10.4% 6.0 1.8 2-3000 21/37/30 5.6 5.6 1-2000 12/46/26 2 1.6 % 5.2 6.3% 100-999 1/1/0
Slide 12: World Economic Growth
World Economic Growth US is the growth engine, though it has hit a weak spot. The Eurozone is strengthening uncertainties globally remain. Positives: Low oil prices. Fed rate hike has delayed due to stock market jitters and worries of economic growth in the emerging markets. Commitment to QE in the
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 2.6(2.5) 2.8 (3.0) (2.8)2.7 Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 1.5(1.5) 1.6 (1.7) 1.7(1.6) Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 0.6 (0.8) 1.0 (1.2) 0.4(0.4) China 7.7 (8.
Slide 14: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2015/16 appear very challenging but should improve in 2017 as orderbook is very low. Any possible upside in the market in 2015/16 currently relies on demand recovery or excess scrapping China remains the main source of drybulk tra
Slide 15: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand prospects to improve during 2016. We expect a supply/demand balance in favor of demand in 2016 and 2017 (assuming no more deliveries than already contracted and some increased slippage/cancelations). Rates should remain soft in
Slide 16: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 17: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Contract Coverage: As of November 1, 2015: 78% in 2015 and 38% 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 1
Slide 18: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Contract Coverage: Abt 56% in 2015 & 15% in 2016 (based on min duration unless t/c rate is below current market rate) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar AprMay JunJul Aug Sep Oct Nov Dec 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16Q4
Slide 19: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) Operational fleet utilization rate in excess of 99.4% 10,000 9,000 over last 5 years. 8,000 Outstanding safety and environmental record. 7,000 6,000 $ / day For 2015Q3, operational fleet utilization 99.1% 5,000 and comm
Slide 20: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10 - yr o ld V e s s e l P ric e H is t o ric a l $/day R a nge 90,000 90 $m Panamax 75,000 dwt 80,000 80 M ax Pr ice, 2 0 0 0 - 2 0 14 Containership 1700 teu Avg Panamax Rate A ver ag e Pr ice, 2 0 0 0 - 70,000 70 Avg 1700teu 2 0 1
Slide 21: Financial Overview
Financial Overview
Slide 22: Financial Highlights: 3rd Quarter and First Nine Months of 2014 and 2015
Financial Highlights: 3rd Quarter and First Nine Months of 2014 and 2015 Third Quarter First Nine Months (in million USD except per change change share amounts) 2014 2015 % 2014 2015 % Net Revenues $9.9 $11.3 13.7% $29.1 $28.9 -0.8% Net Loss ($3.7) ($1.4) ($11.0) ($10.1) Preferred Dividends ($0.4) (
Slide 23: Fleet Data for 3rd Quarter and First Nine Months of 2014 and 2015
Fleet Data for 3rd Quarter and First Nine Months of 2014 and 2015 Fleet Statistics Third Quarter First 9 Months 2014 2015 2014 2015 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.00 15.00 14.47 15.00 Utilization Rate (%) Overall( 1 ) 99.4% 97.1% 99.5% 96.7% Commercial( 1 ) 99.5
Slide 24: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $30 Three Balloons of $10.7m due in 2015. Already refinanced a $5m balloon , expect to sign the loan documentation to refinance another $3.4m during this week. » Cash Flow Breakeven - budget $25 estimate for next 12 months: 0.7 $20 1
Slide 25: Balance Sheet & Other Data
Balance Sheet & Other Data Total Cash(1) : $ 26.5 million $20.6m unrestricted – and about $5.9m of restricted funds and retention accounts Total Debt(1) : $47.8 million Debt to Capitalization ratio about 27%. Debt to Market Value of Fleet ratio about 59% Net debt to Market Value of Fleet
Slide 26: 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