Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2011 Earnings Presentation
26 slides from Euroseas's earnings presentation, Feb 10, 2012
Slide 1: Fourth Quarter & Year Ended December 31, 2011 Earnings Presentation
Fourth Quarter & Year Ended December 31, 2011 Earnings Presentation February 10, 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: 2011 Fourth Quarter & Full Year Overview
2011 Fourth Quarter & Full Year Overview • Financial Highlights - 2011: Fourth Quarter Full Year Net Revenues $15.3 m $61.4 m Net Income / (Loss) $1.1 m $0.04 / $1.1 m $0.04 / share(2) share(2) Adj. Net Income(1) $1.1m $0.04 / $1.5 m $0.05 / share(2) share(2) Adj. EBITDA(1) $6.2m $21.6 m Dividend de
Slide 4: Dividend Declaration
Dividend Declaration • Declared the 26th consecutive $0,5 25% dividend of $0.05 per share for the fourth quarter of 2011 $0,4 20% • Total dividends for the results on the quarterly dividend annualized yield full year of 2011: $0.26/share $0,3 15% • Annualized yield of about 7.0% based on the closing
Slide 5: Other Company Developments
Other Company Developments • Brought forward drydocking of M/V Cpt. Costas • Earlier drydocking benefits from “downtime” during lower rate environment • No drydockings for the next three quarters planned • One drydocking currently expected in the fourth quarter of 2012 • Extended charter coverage •
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 Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,600 2,778 2004 MAERSK NAIROBI Intermediate 34,654 2,556 2001 EM CHIOS Intermediate 32,350 2,506 2000 EM ATHENS Intermediate 32,350 2,506 2000 EM ANDROS Intermediate 33,216 2,450
Slide 8: Market Overview
Market Overview
Slide 9: 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) 1.8 (1.8) 2.2 2.7 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.5 (1.1) 0.8 1.8 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 1.7 (2.3) 1.6 1.4 China 9.2 (6.7) 10.3 (10.0) 9.2 (1
Slide 10: Seaborne Trade Shifts To Pacific Basin & Emerging Countries
Seaborne Trade Shifts To Pacific Basin & Emerging Countries Major Bulk Imports 2011 Containerized Trade 2011 (tons) In parentheses: (teu-miles) Other Region’s / Route’s Transpacific share in 2001 Intra-Reg / (18%) (19%) Other (12%) 16% 13% 14% China Europe (8%) (26%) 35% 14% FE-Europe North-South (2
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 43.8% More than 10% of fleet For delivery in 12/13+m dw t m dw t 200 Is over 25 yrs old (as of Jan-12): 160 160 (scrapping is at record Cape 265/130 180 levels) 25.2% 22.7% 140 Panamax 463/244 140 160
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 7.2 m teu m teu 6.8 42.8 % 2.2 2.2 6.4 2.0 2.0 6.0 5.6 1.8 10.0% 1.8 11.7% 5.2 2.59 1.6 1.6 4.8 9.4% 9.0% 4.4 27.3% 1.4 1.4 4.0 5.6% 8.4% 3.6 1.00 1.2 1.2 3.2 1.16 1.0 0.84 1.0 1.49 2.8
Slide 13: Dry Bulk Summary – Market appears to be near all time lows
Dry Bulk Summary – Market appears to be near all time lows… » Significant deliveries are expected to put pressure on the market for 2012 and likely 2013 • Delivery net delays and cancellations were 40% for 2009, 37% for 2010, 29% for 2011: we expect them to be around 30-35% for 2012 » Scrapping coul
Slide 14: Containership Summary – Supply/demand balance is very fragile
Containership Summary – Supply/demand balance is very fragile » Economic uncertainty has affected containerized trade quite broadly as consumers in Europe and North America have remained timid in their spending • Europe and N. America account for about 30% of containerized trade (teu) but almost 50%
Slide 15: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 16: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100% in 2012 / 46% in 2013 ARISTIDES NP $ 14,950 $10,300 ELENI P $ 16,500 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 Q4 '14
Slide 17: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (1/11/12): Abt 28% in 2012 / Abt 5% in 2013 Container Ship Vessels JONATHAN P CAPTAIN COSTAS Multi-purpose Vessel TIGER BRIDGE $7500 TASMAN TRADER $9,000 MARINOS $ 6,750$6,100 NINOS $11,200 KUO HSIUNG $11,200 MANOLIS P $10,500$7,000 AGGELIKI P $12,5
Slide 18: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) » Operational fleet utilization rate in excess of 98.5% 10,000 over last 5 years 8,000 • Outstanding safety and environmental record $ / day • For 2011, operational fleet utilization 99.7% 6,000 and commercial 96.8% 4,000 • For 20
Slide 19: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year TC Rates 90.000 80.000 Panam ax 75,000 dw t Containership 1700 teu 70.000 60.000 50.000 $ / day 40.000 30.000 20.000 ? 10.000 ? 0 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 01 01 01 01 01 01 01 01 01 01 01 1 Page 19
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 4th Quarter and Full Year of 2010 and 2011
Financial Highlights: 4th Quarter and Full Year of 2010 and 2011 Fourth Quarter Full Year (in million USD except per share change change amounts) 2010 2011 % (4) 2010 2011 % (4) Net Revenues $12.8 $15.3 20.0% $52.5 $61.4 17.0% Net Income ($0.9) $1.1 ($6.6) $1.1 (Gain) / loss on derivatives & unreali
Slide 22: Fleet Data for 4th Quarter and Full Year of 2010 and 2011
Fleet Data for 4th Quarter and Full Year of 2010 and 2011 Fleet Statistics Fourth Quarter Full Year 2010 2011 2010 2011 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.00 15.53 16.00 Utilization Rate (%) Overall(1 ) 98.7% 90.1% 99.2% 96.4% Commercial(1 ) 99.7% 90.5% 99.9%
Slide 23: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 12/31/2011 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 $ 600 $10 Interest $ 650 7.3 13.8 11.6 12.5 11.2 11.0 6.4 Drydock $ 250 $5 6.7
Slide 24: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ December 31, 2011: $ 36.9 m • $30.9 m unrestricted – abt $6.0 m working capital and restricted » Debt: $74.9 m as of December 31, 2011 • Debt to Capitalization ratio 26% • Covenants fully satisfied » About $25-30 m cash equity to fund further growth • $10m committ
Slide 25: 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 26: Appendix
Appendix Please refer to the Company’s press release of February 9, 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 26