Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2011 Earnings Presentation
25 slides from Euroseas's earnings presentation, May 20, 2011
Slide 1: Earnings Presentation: Three Months Ended March 31, 2011
Three Months Ended March 31, 2011 Earnings Presentation May 20, 2011
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 First Quarter Overview
2011 First Quarter Overview • Financial Highlights First Quarter 2011: Net Revenues: $ 14.2 million Net loss: $ (0.6) million, or, ($0.02)/share, basic & diluted Adj. Net income(1): $ (1.3) million, or, ($0.04)/share, basic & diluted Adj. EBITDA(1): $ 3.7 million Dividend declared: $ 0.07 / share, t
Slide 4: Euroseas Market Position
Euroseas Market Position • Exposure to the “right” sectors • Containership feeders which face lower deliveries • Fully covered drybulk vessels which seem to have weak outlook • Strong balance sheet • Debt / market value of fleet less than 40% • Strong cash position • Efficient operations • Amongst t
Slide 5: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 23nd consecutive $0.4 20% dividend of $0.07 per share for the quarterly dividend annualized yield first quarter of 2011 $0.3 15% • Annualized yield of about 6.1% (1) • Intention to maintain policy of $0.2 10% providing healthy dividends throughout market
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 Acquisition Name Type DWT TEU Built Year CMA-CGM TELOPEA(1) Intermediate 37,180 2,785 2007 2010 EM ATHENS Intermediate 32,350 2,506 2000 2010 EM CHIOS Intermediate 32,350 2,506 2000 2010 MAERSK NAIROBI Intermediate 33,771 2,556 2001 2010 EM HYDRA Handy 23,570 1,740 2005 2010
Slide 8: Market Overview
Market Overview
Slide 9: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2008 2009 2010 2011f 2012f 2013-16f USA 1.1 (1.8) -2.6 (-1.6) 2.8 (2.7) 2.8(3.0) 2.9(2.7) 2.7 Eurozone 0.8 (1.8) -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) 1.8(1.7) 1.8 Japan -0.7 (1.4) -6.3 (-2.6) 4.3 (1.7) 1.4 (1.6) 2.1(1.8) 1.4 China 9 (10.1) 9.2 (6.7) 10
Slide 10: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) 38% For delivery in m m dwt m dw t 25.2% 200 About 21% of fleet 2011/12+ (as of Apr- 140 140 Is over 20 yrs old 11): 180 130 130 Cape 265/339 120 120 160 96.8 15.5% Panamax 349/579 110 110 62.5 H’max 354/45
Slide 11: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m teu m teu m TEU 2.2 2.2 7.2 45.9 % 6.8 2.0 2.0 6.4 6.0 1.8 11.7% 1.8 5.6 2.40 1.6 1.6 5.2 4.8 9.4% 9.4% 1.4 1.4 4.4 4.0 25% 1.2 1.2 1.10 5.6% 6.5% 3.6 3.2 0.62 1.0 0.84 1.33 1.0 2.8 14.6% 0
Slide 12: Market Trends - 2011
Market Trends - 2011 » Drybulk– The current low market environment is expected to continue • Drybulk trade growth is expected to be strong for 2011 but… • .. the fleet will probably grow at a higher pace • Record scheduled deliveries in 2011 (mainly) and 2012 even after assuming 40% slippage and can
Slide 13: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 14: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100+ % in 2011 / 50% in 2012 / 8% in 2013 MONICA P Spot Pool/115%FFA -$16500-$23500 PANTELIS $17,500 ARISTIDES NP $ 14,950 ELENI P $ 16,500 IRINI $14,000 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '12 Q4 '13 Physical TC contr
Slide 15: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: 60+ % in 2011 / 5% in 2012 / 0% in 2013 Container Ship Vessels MANOLIS P $7,699 Multi-purpose Vessel NINOS $6,800 Optional periods KUO HSIUNG $5,300 AGGELIKI P $7,000 MAERSK NOUMEA $16,800 CAPTAIN COSTAS $4,250 $10,250 JONATHAN P $9,000 $11,750 YM
Slide 16: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 » Operational fleet utilization rate in excess of 98.5% over last 5 years 8,000 $ / day • Outstanding safety and environmental record 6,000 • For 2011Q1, operational fleet utilization 99.5% 4,000 and commercial 98% 2,000 •
Slide 17: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year TC Rates 90,000 80,000 Panamax 72-75,000 dwt Containership 1700 teu 70,000 60,000 50,000 $ / day 40,000 30,000 ? 20,000 ? 10,000 0 2000-01 2002-01 2004-01 2006-01 2008-01 2010-01 Page 17
Slide 18: Financial Overview
Financial Overview
Slide 19: Financial Highlights: 1st Quarter 2010 and 2011
Financial Highlights: 1st Quarter 2010 and 2011 First Quarter (in million USD except per change share amounts) 2010 2011 % (4) Net Revenues $13.8 $14.2 3.2% Net Income -$3.0 -$0.6 Unrealized & Realized (gain) / loss, derevatives & $3.9 -$0.2 investments Amort. FV of charters, net -$0.5 -$0.5 Adj. Ne
Slide 20: Fleet Data for 1st Quarter of 2010 and 2011
Fleet Data for 1st Quarter of 2010 and 2011 Fleet Statistics First Quarter 2010 2011 (unaudited) (unaudited) Number of vessels 15.00 16.00 Utilization Rate (%) Overall 99.9% 97.5% Commercial 100.0% 98.0% Operational 99.9% 99.5% Averages in usd/day/vessel Time Charter Equivalent (TCE) $ 12,404 $ 11,0
Slide 21: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 5/1/2011 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 0.0 OPEX $ 5,500 million 9.9 $15 G&A $ 800 1.0 2.2 9.6 Interest $ 650 $10 17.5 7.3 Drydock $ 550 11.6 12.5 $5 11.2 11.0 6.4 Loan Rpmt $ 2,300
Slide 22: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ March 31, 2011: $ 40m • $34 m unrestricted – abt $6m working capital and restricted » Debt: $85 m as of March 31, 2011 • Debt to Capitalization ratio about 28% • Covenants fully satisfied » About $30-35 m cash equity to fund further growth • $10m committed to be i
Slide 23: Strategy & Growth
Strategy & Growth » Euroseas strategy of investing in both containerships and bulkers worked well over the last five years: • Avoided investing in bulkers in 2007 and 2008 • Maintained a revenue base well into 2009 due to its containership charters while investing in bulkers at the bottom of the mar
Slide 24: 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 25: Appendix
Appendix Please refer to the Company’s press release of May 19, 2011 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 25