Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2007 Earnings Presentation
21 slides from Euroseas's earnings presentation, Nov 30, 2007
Slide 1: Third Quarter & Nine Months 2007 Earnings Presentation
Confidential Third Quarter & Nine Months 2007 Earnings Presentation November 30, 2007
Slide 2: Forward-Looking Statements
Forward- Forward-Looking Statements "forward--looking statements" within the meaning of federal securities laws. Statements in this presentation may be "forward laws. forward--looking statements are based on current management expectations The matters discussed herein that are forward that involve r
Slide 3: Overview Third Quarter and Nine Months 2007 Results
Overview Third Quarter and Nine Months 2007 Results Financial Highlights Third Quarter 2007 Third Quarter 2006 Net Revenues: $ 21.5 million $ 8.9 million Net income: $ 9.5 million $ 5.3 million Adj. EBITDA: $ 15.2 million $ 7.5 million Nine Months 2007 Nine Months 2006 Net Revenues: $ 50.6 million $
Slide 4: 2007 Developments
2007 Developments » Raised aggregate gross proceeds of $224 million ($210 million net) net) from three secondary offerings to expand fleet & repay debt • $43.3 million net in January 2007 • $73.0 million net in July 2007 • $93.4 million net in November 2007 » Continued to executed on our strategy •
Slide 5: Corporate Growth 2006-2007
Corporate Growth 2006- 2006-2007 Fleet Fleet Growth Growth Market Market Capitalization Capitalization 15 450 16 400 +67% 350 12 300 +340% 9 million vessels 250 8 200 150 4 100 50 0 0 (2) Nov-06 Nov-07 Nov-06 Nov-07 TCE TCE Revenues Revenues Adjusted Adjusted EBITDA EBITDA 45 55 50 40 45 +82% 35 40
Slide 6: Vessel Sale & Purchase Activity
Vessel Sale & Purchase Activity » Purchased containership, m/v Tiger Bridge, for $24 m; took delivery of the vessel on October 3, 2007 • TC at $16,500 until July 2009 • No financing arranged » Purchased bulker, bulker, m/v Ioanna P, for $28.6 m; took delivery of the vessel on November 1, 2007 • TC a
Slide 7: Current Fleet
Current Fleet Size Year Name Type DWT TEU Built P Irini Panamax 69,734 - 1988 Aristides N.P. Panamax 69,268 - 1993 Carriers Drybulk Ioanna P. Panamax 64,873 - 1984 Gregos Handysize 38,691 - 1984 Nikolaos P. Handysize 34,750 - 1984 Despina P. Handysize 33,667 1,932 1990 Jonathan P. Handysize 33,667 1
Slide 8: Vessels Employment Chart
Vessels Employment Chart (Months) 0 3 6 9 12 15 18 21 24 27 Gregos Spot - $57,000 Nikolaos P. Spot - $47,000 Average Remaining Aristides N.P. Charter Life: 14 Months $29,000 Ioanna P. $35,500 Irini* $17,000 - $20,000 Dry Bulk Carriers Jonathan P. Dry Dock Despina P. Dry Dock Container Ship Vessels M
Slide 9: Charter Coverage
Charter Coverage 60% 56% 50% 46% 40% 30% 22% 20% 10% 0% Dry Bulk Container Total » Secure base revenue 2008 for the existing fleet while maintaining maintaining exposure to the drybulk market Page 9
Slide 10: Container Period Charter Rate Development
Container Period Charter Rate Development • Drybulk rates have Baltic Baltic Dry Dry Index Index Vs. Vs. Container Container TC Rate (1) TC Rate (1) been very strong $35,000 12500 since middle of 2006 with.. $30,000 10000 • …BDI increasing by more than 300% BDI Index $25,000 7500 USD/day • Container
Slide 11: Financial Overview
Financial Overview
Slide 12: Fleet Data for Q3 and First Nine Months of 2006 and 2007
Fleet Data for Q3 and First Nine Months of 2006 2006 and 2007 Three months ended Nine months ended Fleet Statistics Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2006 2007 2006 2007 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 7.35 12.13 7.91 10.42 Utilization Rate % 96.4% 100.0% 98.7
Slide 13: Financial Highlights – Q3 and First Nine Months 2007
Financial Highlights – Q3 and First Nine Months 2007 Three Three Months Months Ended Ended Sep. Sep. 30, 30, 2007 2007 Nine Nine Months Months Ended Ended Sep. Sep. 30, 30, 2007 2007 » Voyage revenue: $22.5 m » Voyage revenue: $ 53.1 m » Capital Gains: - » Capital Gains: $ 3.4 m » Net income: $ 9.5
Slide 14: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ September 30, 2007: $ 43.2 m • Also restricted cash of $4.9 m » Net Proceeds from July 2007 offering: $93.4 m – Acquisitions of 2 vessels for $52.6 m in October and November 2007 – Debt to finance latest acquisition of $15 m » Around $300 m purchasing power • $100
Slide 15: Rapid Debt Repayment
Rapid Debt Repayment Debt Debt Repayment Repayment Schedule Schedule –– As As of 9/302007(1) of 9/302007 (1) Cash Cash Flow Flow Breakeven Breakeven » 35%+ of our cash flow breakeven $25 $24.2 level is for debt repayment: • $3,781 / day / vessel for Q3 $20 • $4,778 / day / vessel for 9mos $14.9 $15
Slide 16: Dividend History & Policy
Dividend History & Policy Dividend Dividend History History Dividend Dividend Policy Policy » Objective to provide consistent 0.30 dividends • Minimum target quarterly 0.25 dividend of $0.24 / share • Dividend for 07 Q3: $0.29/share 0.20 • Next dividend in Feb- Feb-2008 $ / share 0.15 » Current divi
Slide 17: Appendix
Appendix
Slide 18: Income Statement, Third Quarter & Nine Months 2006 & 2007
Income Statement, Third Quarter & Nine Months 2006 & 2007 Three months ended at Nine months ended at INCO ME S TATE ME NT September 30, September 30, in '000 US D e xce pt pe r share 2006 2007 2006 2007 amounts and numbe r of ve sse ls (unaudited) (unaudited) (unaudited) (unaudited) Voyage re ve nue
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (Unaudited – in U.S. Dollars) Three Months Three Months Nine months Nine months Ended Ended Ended Ended September 30, September 30, September September 2006 2007 30, 2006 30, 2007 Net income 5,362,380 9,470,112 15,322,422 25,345,486 Interest and financ
Slide 20: Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA
Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA (Unaudited – in U.S. Dollars) Three Months Three Months Nine months Nine months Ended Ended Ended Ended September 30, September 30, September September 2006 2007 30, 2006 30, 2007 Net cash flow provided 4,262,431 11,989,767 1
Slide 21: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 40, Ag. Konstantinou 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 Canterbu