Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2012 Earnings Presentation
27 slides from Euroseas's earnings presentation, Aug 9, 2012
Slide 1: Three- And Six-Month Period Ended June 30, 2012 Earnings Presentation
Three- And Six-Month Period Ended June 30, 2012 Earnings Presentation August 9, 2012
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: 2012 Second Quarter & First Half Overview
2012 Second Quarter & First Half Overview • Financial Highlights - 2012: Second Quarter First Half Net Revenues $12.8 m $26.7 m Net Income / (Loss) ($1.4) m ($0.04)/ ($10.4) m ($0.32) / share(2) share(2) Adj. Net Income(1) ($1.3) m ($0.04)/ ($1.4) m ($0.04) / share(2) share(2) Adj. EBITDA(1) $3.4 m
Slide 4: Dividend Declaration
Dividend Declaration $0,5 25% Declared the 28th consecutive dividend of $0.02 per share for the $0,4 20% first quarter of 2012 quarterly dividend annualized yield Annualized yield of about 6.8% $0,3 15% based on the closing share price of $1.18 on 08/07/2012 $0,2 10% Intention to maintain poli
Slide 5: Other Company Developments
Other Company Developments Charter renewals – all vessels are employed Have re-chartered 3 containerships for short durations, one of which at a lower rate Manolis P was fixed for 2 to 8 weeks for $6,500 per day Ninos and Kuo Hsiung have been extended for 5 months @ $7,375 + 6 months option
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Acquisition Name Type DWT TEU Built Year 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 Intermed
Slide 7: Euromar Joint Venture
Euromar Joint Venture Acquisitions Acquired Cap Egmont, a 2007-built containership of 3,091 teu Fleet now stands at 10 vessels Capital Commitments Partnership has called 75% (about $131 million) of the original commitment of $175 million, and, has about $44 million available. Investment
Slide 8: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CAP EGMONT (1) Intermediate 41,850 3,091 2007 EM ASTORIA Intermediate 35,600 2,788 2004 CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 MAERSK NAIROBI Intermediate 34,654 2,556 2001 EM ATHENS Intermediate 32,350 2,506 2000 EM CHIOS Intermediate 32,350 2
Slide 9: Rights Offering Successfully Completed
Rights Offering Successfully Completed Company’s right offering was completed as planned 13,852,094 shares were sold at $1.1 per share, raising approximately $15.2 million before expenses and approximately $14.9 million net. The offering was oversubscribed by more than 630,000 shares. Compan
Slide 10: Market Overview
Market Overview
Slide 11: World Economic Growth
World Economic Growth Developed economies growth has been revised modestly downwards by IMF (as of July 2012) BRIC countries outlook downgraded – China 8.0%, India 6.1%; increased talk of Chinese hard landing which will further affect Brazil as commodity exporter to China Asian economies on av
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2009 2010 2011 2012F (*) 2013F (*) 2014-16F (*) USA -2.6 (-1.6) 2.8 (2.7) 1.8 (3.0) 2.0 (2.1) 2.3(2.4) 2.7 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.3 (-0.3) 0.7(0.9) 1.8 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 2.4(2.0) 1.5(1.7) 1.4 China 9
Slide 13: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) 49.9% m dwt 7.7% of the fleet 200 Is over 25 yrs old 22.7% For delivery in 12/13+ (scrapping is at m dw t (as of Jun-12): 180 160 record levels) Cape 162/172 160 140 Panamax 375/387 14.2% 140 74,6 H’max 315
Slide 14: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) mmteu Container Orderbook (1) m TEU 2.2 7,2 41.7 % 6,8 2.0 6,4 Delivered 2012 to-date 6,0 1.8 10.0% 5,6 5,2 1.6 2,95 4,8 28% 1.4 9.4% 9.0% 4,4 8.4% 4,0 1.2 5.6% 1,2 3,6 Abt 3,2 1.0 0.84 1,15 2,8 0,98 16% 0.8 0.54 0.
Slide 15: Outlook Summary
Outlook Summary Drybulk Market Significant deliveries expected in 2012, and, likely, in 2013 too, take away any hope for rate recovery, almost irrespective of demand growth On demand growth, China’s sort of landing weights significantly with little help expected from Europe; Japan’s contribution
Slide 16: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 17: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100% in 2012 / 43% in 2013 ELENI P $16,500 ARISTIDES NP $10,300 IRINI $14,000 MONICA P $12,375 PANTELIS $17,500 $11,200+50/50 profit share One year Opt. @ 14,200 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Optional Physica
Slide 18: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (as of Aug 1‘12): Abt 53% in 2012 / Abt 8.3% in 2013 (based on min durations) NINOS $11,200 $7,375 KUO HSIUNG $11,200 $7,375 Time Charter Period MANOLIS P $10,500 $7,000 $6,800 $6,500 Optional Period AGGELIKI P $12,500 $6,500 Multi-purpose Vessel MA
Slide 19: 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 Outstanding safety and environmental record 7.000 6.000 For 2012Q2, operational fleet utilization 99.5% $ / day 5.000 and commercial
Slide 20: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 10-Year Secondhand Prices 10-yr old Price Historical Range 90 90 80 80 Max, 2000-2011 Panamax 75,000 dwt Average, 2000-2011 70 70 Containership 1700 teu Min, 2000-2011 60 60 Current, August-2012 50 50 million $ $ million 40 40 30 30 20 20 ? ? 10 10 0 0 2001
Slide 21: Financial Overview
Financial Overview
Slide 22: Financial Highlights: 2nd Quarter and 1st Half of 2011 and 2012
Financial Highlights: 2nd Quarter and 1st Half of 2011 and 2012 Second Quarter First Half (in million USD except per change change share amounts) 2011 2012 % (4) 2011 2012 % (4) Net Revenues $15.6 $12.8 -18.1% $29.8 $26.7 -10.5% Net Income $0.0 ($1.4) ($0.6) ($10.4) (Gain) /Loss on Sale of Vessel -
Slide 23: Fleet Data for 2nd Quarter and 1st Half of 2011 and 2012
Fleet Data for 2nd Quarter and 1st Half of 2011 and 2012 Fleet Statistics Second Quarter First Half 2011 2012 2011 2012 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 15.00 16.00 15.42 Utilization Rate (%) Overall(1 ) 98.5% 98.5% 98.0% 92.8% Commercial(1 ) 98.6% 99.0% 98.3%
Slide 24: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 06/30/2012 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day million $15 3,7 9,9 OPEX $ 5,700 25,6 2,4 1,0 2,2 9,6 G&A $ 750 $10 Interest $ 650 7,3 13,8 11,6 12,5 11,2 11,0 6,4 Drydock $ 1,000 $5 6,
Slide 25: Balance Sheet & Other Data
Balance Sheet & Other Data Cash @ June 30, 2012: $ 48.2m $39.4 m unrestricted – and about $8.8m of restricted funds and retention accounts Cash per share amounts to about $1.07 (versus yesterday’s share price of $1.17) Debt: $67.1 m as of June 30, 2012 Debt to Capitalization ratio about 24
Slide 26: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. 4, Messogiou & Evropis Street 151 25 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 Canterbury Lane 230 Pa
Slide 27: Appendix
Appendix Please refer to the Company’s press release of August 8, 2012 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 27