Slide 1: Fourth Quarter and Full Year 2006 Earnings Presentation
Fourth Quarter and Full Year 2006 Earnings Presentation February 28, 2007
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: Fourth Quarter & Full Year 2006 Overview
Fourth Quarter & Full Year 2006 Overview Financial Highlights Fourth Quarter 2006 Full Year 2006 • Net Revenues: $ 11.9 million $ 40.3 million • Net income: $ 4.7 million $ 20.1 million • Adj. EBITDA: $ 8.1 million $ 29.5 million • Declared quarterly dividend of $0.22 per share for the fourth quarte
Slide 4: Recent Offering
Recent Offering Securities: 5,750,000 common shares with full exercise of the shoe Ticker/Exchange: “ESEA” – Nasdaq Global Markets Price: $8.25 Gross Proceeds: $47.4 million Net Proceeds: $43.1 million Use of Proceeds: Repay $7 million of indebtedness and fund future vessel acquisitions Pittas Famil
Slide 5: After Completion of Follow-on Offering
After Completion of Follow-on Offering » Solid Balance Sheet – ample liquidity • Debt / Capitalization ratio about 45% post-offering • About $35 m available for further investments » Market capitalization about $170 million (2/27/2007) • Stock now trades on NASDAQ Global Market – ESEA » Increase mar
Slide 6: Vessel Sale & Purchase Activity
Vessel Sale & Purchase Activity • Purchased and took delivery of the M/V YM Xingang I, a 1993 built 1,599 teu container ship acquired with a time charter to YM Lines at $26,650 until July 2009 • Purchased and took delivery of the M/V Gregos (ex M/V Triada), a 1984 built 38,4347 dwt dry bulk carrier
Slide 7: Our Fleet
Our Fleet Size Year Employment/ Gross Name Type DWT TEU Built Expiration Date Charter Rate ARISTIDES N.P. Panamax 69,268 - 1993 Period/January ’08 $29,000 IRINI Panamax 69,734 - 1988 Pool/December ’08 $17,000 - $20,000(1) Carriers Drybulk NIKOLAOS P. Handysize 34,750 - 1984 Spot $17,000 GREGOS Handy
Slide 8: Charter Coverage
Charter Coverage Available Days 1000 Fixed Days 100% Average % Days On Contract for Year 900 % Days Fixed 90% 2007-67.5% 800 80% 700 70% Available Days 600 60% 2008-38% 500 50% 400 40% 300 30% 200 20% 100 10% 0 0% 07.1 07.2 07.3 07.4 08.1 08.2 08.3 08.4 Secure base revenue in 2007 and 2008 for the e
Slide 9: Business Strategy – Generate Consistent Shareholder Returns
Business Strategy – Generate Consistent Shareholder Returns » Focus on timely and selective acquisitions of quality secondhand vessels • Drybulk carriers – up to Panamax size ( 75,000 dwt) • Container ships – up to 2,500 teu • Segments with lower supply growth & multiple trading routes and cargoes »
Slide 10: Financial Overview
Financial Overview
Slide 11: Historical Charter Rates
Historical Charter Rates Historical Historical Charter Charter Rates Rates (Gross (Gross $/Day) $/Day)(1) (1) $50,000 • Drybulk markets $45,000 have increased significantly since $40,000 summer ‘06 $35,000 $30,000 • The early 2005 peaks $25,000 have not been $20,000 reached yet but the market has $1
Slide 12: Financial Highlights – Continued Financial Momentum
Financial Highlights – Continued Financial Momentum 3-Months 3-Months Ended Ended December December 31, 31, 2006 2006 Year Year Ended Ended December December 31, 31, 2006 2006 » Fleet utilization: 99.6% » Fleet utilization: 98.9% » Voyage revenue: $12.4 m » Voyage revenue: $42.1 m » Adjusted EBITDA:
Slide 13: Fleet Data for 2004, 2005 and 2006 and Q4 2005 & 2006
Fleet Data for 2004, 2005 and 2006 and Q4 2005 &2006 Average Per Vessel Per Day Statistics Three Months Ended Year Ended December 31, December 31, 2004 2005 2006 2005 2006 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 7.31 7.10 8.09 7.40 8.51 Utilization Rate % 99.5%
Slide 14: Rapid Debt Repayment
Rapid Debt Repayment Debt Debt Repayment Repayment Schedule Schedule –– As As of of 12/31/06 12/31/06 $20 $18.0 $17.4 Total Debt: $74.95 $15 $10.7 $10 $8.8 $9.2 $5.6 $5.1 $5 $0 2007 2008 2009 2010 2011 2012 2013 % of Total Debt: 24% 23% 12% 12% 7% 7% 14% Average Average Debt Debt Life Life of of 33
Slide 15: Dividend History & Policy
Dividend History & Policy Dividend Dividend History History Dividend Dividend Policy Policy » Objective to provide consistent 0.23 dividends 0.22 • Minimum target quarterly 0.21 dividend of $0.22 per share 0.20 • Next dividend in May-2007 $ / share 0.19 » Min Target Dividend equates to 9.5% yield (1
Slide 16: 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. 2692 Far Vi
Slide 17: Appendix
E Appendix
Slide 18: Income Statement, 2004, 2005, 2006 and Q4 2005 & 2006
Income Statement, 2004, 2005, 2006 and Q4 2005 & 2006 Three months ended at INCOME STATEMENT Year ending at December 31, December 31, in '000 USD except per share 2004 2005 2006 2005 2006 amounts and number of vessels (audited) (audited) (audited) (unaudited) (unaudited) Voyage revenue 45,718 44,523
Slide 19: Adjusted EBITDA
Adjusted EBITDA Reconciliation Reconciliation of of Net Net Income Income to to Adjusted Adjusted EBITDA EBITDA (Unaudited) Three Months Ended Full Year Ended December 31, 2006 December 31, 2006 Net income 4,746,985 20,069,407 Interest and finance costs, net 990,413 2,528,812 (incl. Interest Income)