Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2012 Earnings Presentation
27 slides from Euroseas's earnings presentation, May 16, 2012
Slide 1: Three Months Ended March 31, 2012 Earnings Presentation
Three Months Ended March 31, 2012 Earnings Presentation May 16, 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 First Quarter Overview
2012 First Quarter Overview Financial Highlights First Quarter 2012: Net Revenues: $ 13.9 million Net loss: $ (9.0) million, or, ($0.29)/share, basic & diluted Loss on sale of M/V Jonathan P: $ (8.6) million Adj. Net income(1): $ (0.1) million, or, ($0.00)/share, basic & diluted Adj. EBITDA(1): $ 4.
Slide 4: Dividend Declaration
Dividend Declaration $0,5 25% Declared the 27th consecutive dividend of $0.04 per share for the first quarter of 2012 $0,4 20% quarterly dividend Annualized yield of about 11.0% annualized yield $0,3 15% based on the closing share price of $1.45 on 05/14/2012 $0,2 10% Intention to maintain pol
Slide 5: Other Company Developments
Other Company Developments Charter renewals – all vessels are employed Have re-chartered 6 containerships for short durations but at lower rates Tiger Bridge was extended for 4-12 months @ $6,000 + 9-12 months option @ $9,000 Captain Costas fixed for 12 months @ $7,000 + 12 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 EM Ithaki (ex- MOL Volta), 1999-built containership of 2,135 teu, and, Agreed to acquire Cap Norte, a 2007-built containership of 3,091 teu Fleet will stand at 10 vessels after delivery of Cap Norte Capital Commitments Partnership has called 75
Slide 8: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CAP NORTE (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
Rights Offering Ideal time to have more funds in the Company to exploit low vessel prices But raising equity when stock price trades at 50% of NAV is quite dilutive … …unless additional funds are contributed pro-rata by all existing shareholders On May 4, 2012, the Company announced plans to
Slide 10: Market Overview
Market Overview
Slide 11: World Economic Growth
World Economic Growth Significant downside risks and political & economic uncertainties remain Some positives: US economy grew 3% in 2011Q4 and 2.2% in 2012Q1; US unemployment dropped to 8.1% in April ’12; Europe has built up some defense mechanisms (EFSF) against country member default
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) 2.1 (1.8) 2.4(2.2) 2.7 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.3 (-0.5) 0.9(0.8) 1.8 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 2.0(1.7) 1.7(1.6) 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) m dwt 47.7% 8.5% of the fleet m 200 Is over 25 yrs old 160 For delivery in 12/13+ (scrapping is at 22.7% (as of Apr-12): 180 record levels) 140 Cape 257/159 160 Panamax 470/343 120 140 H’max 387/241 60.3 68
Slide 14: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) m teu Container Orderbook (1) m TEU 2.2 7,2 42.6 % 6,8 2.0 6,4 6,0 1.8 10.0% 5,6 1.6 5,2 2,74 9.4% 9.0% 4,8 1.4 4,4 27.3% 8.4% 1.2 5.6% 4,0 3,6 1,06 Abt 1.0 0.84 3,2 1,13 1.49 2,8 15.8% 0.8 0.54 1.7 4.2% 1,04 0.94 1
Slide 15: A Challenging Market Environment All-Around!
A Challenging Market Environment All-Around! Drybulk Market Significant deliveries are expected in 2012, and, likely, in 2013 too, despite high expected scrapping there is simply too much tonnage to be delivered! Drybulk trade growth expectations having been negatively affected by slower world
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 May ‘12): Abt 59% in 2012 / Abt 11% in 2013 (based on min durations) (abt 78% in 2012 based on expected duration) MANOLIS P $10,500 $7,000 AGGELIKI P $12,500 $6,500 MARINOS $ 6,750 $6,100 $6,000 $8,250 Optional Periods NINOS $11,200 $7,375 Op
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 2012Q1, operational fleet utilization 99.4% $ / 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 M ax, 2 0 0 0 - 2 0 11 Panamax 75,000 dwt A ver ag e, 2 0 0 0 - 2 0 11 70 70 Containership 1700 teu M in, 2 0 0 0 - 2 0 11 60 60 C ur r ent , M ay- 2 0 12 million $ 50 50 $ million 40 40
Slide 21: Financial Overview
Financial Overview
Slide 22: Financial Highlights: 1st Quarter 2011 and 2012
Financial Highlights: 1st Quarter 2011 and 2012 First Quarter (in million USD except per share change (4) amounts) 2011 2012 % Net Revenues $14.2 $13.9 -2.1% Net Income / Loss -$0.6 -$9.0 Loss on Sale of Vessel $0.0 $8.6 Unrealized & Realized (gain) / loss, -$0.2 $0.2 derevatives & investments Amort
Slide 23: Fleet Data for 1st Quarter of 2011 and 2012
Fleet Data for 1st Quarter of 2011 and 2012 Fleet Statistics First Quarter 2011 2012 (unaudited) (unaudited) Number of vessels 16.00 15.92 Utilization Rate (%) Overall 97.5% 87.1% Commercial 98.0% 87.6% Operational 99.5% 99.4% Averages in $/day/vessel Time Charter Equivalent (TCE) $ 11,088 $ 11,258
Slide 24: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 03/31/2012 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 $ 600 $5 6,7
Slide 25: Balance Sheet & Other Data
Balance Sheet & Other Data Cash @ March 31, 2012: $ 35.7m $29.8 m unrestricted – abt $5.9m working capital and restricted Debt: $70.4 m as of March 31, 2012 Debt to Capitalization ratio about 26% Debt to Market Value of Fleet ratio within 50-55% Net debt to Market Value of Fleet ratio wi
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 May 15, 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