Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2018 Earnings Presentation
20 slides from Euroseas's earnings presentation, Aug 10, 2018
Slide 1: Earnings Presentation Quarter Ended June 30th, 2018
Earnings Presentation Quarter Ended June 30th, 2018 August 10th, 2018
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: Key 2018 Developments: The EuroDry Spin-off
Key 2018 Developments: The EuroDry Spin-off The EuroDry spin-off took place as planned on 5/30/2018 Since 5/31/2018, EuroDry and Euroseas started trading separately each reflecting, respectively, the drybulk and feeder containership fleet of the pre-spinoff Euroseas Combined price after spin-o
Slide 4: Euroseas Fleet – The only US listed mainly feeder container company
Euroseas Fleet – The only US listed mainly feeder container company CONTAINERSHIPS Size Year Name Type DWT TEU Built Akinada Bridge Intermediate 71,366 5,610 2001 EM Astoria Feeder 35,600 2,788 2004 EM Corfu Feeder 34,654 2,556 2001 Evridiki G Feeder 34,677 2,556 2001 EM Athens Feeder 32,350 2,506 2
Slide 5: Balance Sheet 2018Q2: Key Items – Post Spinoff
Balance Sheet 2018Q2: Key Items – Post Spinoff Euroseas: Key Balance Sheet Items - June 30, 2018 (million USD) Book Value of Vessels $50.4 Total Debt $30.6 Cash (Unrestricted & Restricted) $13.6 Current Liabilities $12.5 Other Current Assets $3.4 Other LT Liabilities $2.0 Prefered Equity $18.3 Other
Slide 6: Income Statement 2018Q2: Key Items – Post Spinoff
Income Statement 2018Q2: Key Items – Post Spinoff Euroseas: Income statement highlights- 2nd Quarter 2018 (million USD except share amounts) Net Revenues $9.8 EBITDA (Adj) $2.4 Net Income to Common Shareholders $1.8 EPS, basic & diluted $0.16 EPS, Adj $0.04 Note: The difference between the EPS and t
Slide 7: Other Operational Highlights
Other Operational Highlights Vessel S&P Monica P, the only drybulk vessel that had been left in Euroseas was delivered to her new owners on June 25th as planned Repairs/DD Ninos drydocking: Commenced on 6/22/18; delivered to charterers on August 1st EM Astoria damage The vessel suffered
Slide 8: Pillar of Success: Fleet Management & Operational Performance
Pillar of Success: Fleet Management & Operational Performance Daily costs per vessel 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 For 2018Q2, operational fleet utilization 93.9% and 6,000 $ / day co
Slide 9: Employment Chart – Containerships
Employment Chart – Containerships Coverage: As of August: 53% in 2018 (basis min durations) 2018 2019 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 MONICA P $6.500 $10.000 $8.000 SOLD AKINADA BRIDGE $11.250 $1 $8.100 $16.500
Slide 10: Containership Market Highlights
Containership Market Highlights Time charter rates in Q2 for feeder and intermediate size vessels ranging from 1000-5000 teu have all risen abt 15-40% on average with bigger increases in the above 4,000 teu sizes The 1,700 teu geared vessel rose from an average of $9,683 in Q1 to $10,800 in Q2 a
Slide 11: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1700 teu 1-Year Time Charter Rate 10 Year Old Historical Price Range $/day 35,000 4 0$m 30,000 Containership 1700 teu 35 Avg 1700teu Max Price, 2000-2017 25,000 30 Average Price, 2000-2017 20,000 25 Min Price, 2000-2017 15,000 20 Current Price, Aug-18 15 10
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Synchronized world economic recovery for the first time since 2010 with US growth continuing strong (3%) in Q3 despite hurricanes. Strengthening growth in the Eurozone, strong growth in China and solid growth in most parts of the world are to result in healthy grow
Slide 13: 1000-3000 teu Fleet Age Profile & Orderbook Delivery Schedule
1000-3000 teu Fleet Age Profile & Orderbook Delivery Schedule Feeder Containership Age Profile Container Feeder Orderbook m TEU m TEU 1,2 0.2 29% 4.8% 4.5% 0% 0,8 0,60 24% 0% 20% 0.06 0.08 0.1 0.11 -1.8% 13% 0,27 0.05 0,33 9% 0,4 0.04 0,22 0,13 1.3% 0,47 0.08 0,39 4% 0.06 0.07 0,30 0.05 0.05 0.027 0
Slide 14: Outlook Summary
Outlook Summary We expect the supply/demand balance to be slightly positive in 2018. This has already led to rates rising significantly, especially, for smaller vessels for which rates exceeded historical average levels The fundamentals for the sub 5,000 teu vessels look even better as fleet gro
Slide 15: Financial Overview
Financial Overview
Slide 16: Financial Highlights: 2nd Quarter & 1st Half of 2017 and 2018
Financial Highlights: 2nd Quarter & 1st Half of 2017 and 2018 Adjusted Historically For All ESEA Vessels Only Second Quarter Change Six Months Change In million USD except share amounts 2017 2018 % 2017.0 2018.0 % Net Revenues 5.3 9.8 85% 10.2 18.1 76% Net (Loss)/Income (0.8) 2.2 (2.1) 0.8 Preferred
Slide 17: Fleet Data for 2nd Quarter & 1st Half of 2017 and 2018
Fleet Data for 2nd Quarter & 1st Half of 2017 and 2018 Second Quarter First Half Fleet Statistics 2017 2018 2017 2018 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 8.12 11.95 8.38 11.97 Utilization Rate (%) (1) Operational 99.8% 93.9% 99.6% 96.8% (1) Commercial 100.0% 99.8% 97.1%
Slide 18: Container Fleet Debt Repayment Profile
Container Fleet Debt Repayment Profile Containership Fleet Debt Repayment Schedule Cash Flow Breakeven $20 Cash Flow Breakeven - budget $15 estimate for next 12 months: $9.4m million $/vessel/day $10 $7.9m OPEX $ 5,550 G&A $ 550 $5 Interest $ 550 $0.7m Drydock $ 500 Loan Rpmt(*) $ 1,000 $0 2018 20
Slide 19: Looking Ahead: Opportunities & Challenges
Looking Ahead: Opportunities & Challenges Start of a new phase for our company Unique Container Feeder focused platform with access to the capital markets Container shipping sector at an attractive point in the cycle for expansion Orderbook to one of the lowest levels of the last 15 years
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 Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cante