Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Capital Link 7th Annual Invest in International Shipping Forum (March 2013)
27 slides from Euroseas's conference presentation, Mar 21, 2013
Slide 1: Euroseas Ltd Capital Link 7th Annual Invest in International Shipping Forum
Euroseas Ltd Capital Link 7th Annual Invest in International Shipping Forum March 21, 2013
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: Euroseas Ltd: Introduction & Milestones
Euroseas Ltd: Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services and owner of ships • Drybulk carriers – transporting iron ore, coal, grains and minor bulks • Container and multipurpose ships – transporting dry and refrigerated cargoes » Corporate Profi
Slide 4: Euroseas Strategic Evolution
Euroseas Strategic Evolution A traditional Greek shipping PRIVATE company that has adapted its EQUITY strategy to the changing times and opportunities… PUBLIC 2010-13 MARKETS 2005-2007 CONTAINER -SHIPS 2000’s … building on its time-tested strengths: love for operating ships, cost control, and, BULKE
Slide 5: 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 6: Euromar Joint Venture
Euromar Joint Venture Size Year Name Type DWT TEU Built Started in March 2010 CAP EGMONT (1) Intermediate 41,850 3,091 2007 With Rhone Group & Eton Park EM ASTORIA Intermediate 35,600 2,788 2004 Capital as partners CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 MAERSK NAIROBI Intermediate 34,654
Slide 7: 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 2012Q4, operational fleet utilization 99.1% $ / day 5,000 and commercial
Slide 8: Market Outlook Overview
Market Outlook Overview
Slide 9: World Economic Growth
World Economic Growth World economy still expected to grow at modest levels: about 3.5% in 2013 • Stock market optimism does not seem supported by economic growth expectations • Asian economies still provide the largest contribution to the world growth, especially the NIE ones Political & econom
Slide 10: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2009 2010 2011 2012 2013F (*) 2014F (*) 2015F (*) USA -2.6 (-1.6) 2.8 (2.7) 1.8 (3.0) 2.3 (1.8) 2.0(2.1) 3.0(2.9) 3.4 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.4 (-0.5) .-0.2(0.2) 1.0(1.2) 1.5 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 2.0(1.7
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook For delivery in 13/14 (as of Feb-13): m dwt 51% 12% of the fleet is Cape 165 / 60 200 over 20 yrs old (scrapping is at m Panamax 443 / 170 As of start 2012 180 record levels) 160 H’max 308 / 79 160 140 Handies
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU mmteu 7.2 40.6 % 2.2 As of start 2012 6.8 Delivered 2013 to-date 6.4 2.0 6.0 11.3% 5.6 1.8 5.2 3.17 29.3% 1.6 4.8 9.4% 6.06% Abt 4.4 1.4 1.32 8.4% 6.05% 4.0 1.2 5.6% 3.6 1.62 3.2 1.15 1 15.6%
Slide 13: Outlook Summary
Outlook Summary Drybulk Market Chinese economic growth rate main determinant of dry bulk trade growth expectations Delivery net delays and cancellations are expected to be around 30% of scheduled deliveries in 2013 Nevertheless, significant deliveries are expected to put pressure on the market
Slide 14: Chartering, Funding & Investment Strategy
Chartering, Funding & Investment Strategy
Slide 15: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 75% in 2013 and 25% in 2014 IRINI $14,000 MONICA P $12,375 ARISTIDES NP $10,300 $7,500 PANTELIS $11,200+50/50 profit share One year Opt. @ 14,200 ELENI P $16,500 Klaveness Pool Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Optional period
Slide 16: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (as of Mar 15‘13): Abt 37% in 2013 (based on min durations) 2013 2014 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Q1 Q2 Q3 Q4 Q1 Q2 ANKING $8,600 OEL BENGAL $6,950 TIGER BRIDGE $5,500 MARINOS $6,000 KUO HSIUNG $6,725 MA
Slide 17: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 12/31/2012 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day million 3.7 9.9 OPEX $ 5,500 $15 25.6 2.4 1.0 2.2 G&A $ 700 $10 4.6 Interest $ 550 7.3 13.8 12.5 9.4 Drydock $ 1,100 11.6 11.2 11.0 $5 7.
Slide 18: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 90,000 80,000 Panamax 75,000 dwt 70,000 Containership 1700 teu 60,000 50,000 40,000 30,000 20,000 ? 10,000 ? 0 2001-01 2002-01 2003-01 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 Page 18
Slide 19: 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 and maintained a revenue base well into 2009 due to our containership charters while investing in bulkers at the bottom of the m
Slide 20: Balance Sheet & Other Data
Balance Sheet & Other Data Cash @ December 31, 2012: $ 43.3m $33.4m unrestricted – and about $9.9m of restricted funds and retention accounts Cash per share amounts to about $0.95 (versus yesterday’s share price of $0.99) Debt: $61.6m as of December 31, 2012 Debt to Capitalization ratio ab
Slide 21: Euroseas Market Position
Euroseas Market Position We have what it takes … » Strong balance sheet with low leverage & funds available for investment » One of the lowest cost operating structures » Team and experience … to take advantage of the opportunities ahead and increase shareholder value Page 21
Slide 22: Euroseas Contacts
Euroseas Contacts Euroseas 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 Canterbury Lane 230 Pa
Slide 23: Appendices
Appendices 1) Fourth Quarter and Full Year 2012 Financial Results 2) Our Team
Slide 24: Financial Highlights: 4th Quarter and Full Year of 2011 and 2012
Financial Highlights: 4th Quarter and Full Year of 2011 and 2012 Fourth Quarter Full Year (in million USD except per change change share amounts) 2011 2012 % (4) 2011 2012 % (4) Net Revenues $15.3 $12.4 -19.2% $61.4 $52.5 -14.5% Net Income $1.1 ($2.0) $1.1 ($13.2) (Gain) /Loss on Sale of Vessel - -
Slide 25: Fleet Data for 4th Quarter and Full Year of 2011 and 2012
Fleet Data for 4th Quarter and Full Year of 2011 and 2012 Fleet Statistics Fourth Quarter Full Year 2011 2012 2011 2012 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 15.00 16.00 15.21 Utilization Rate (%) Overall( 1 ) 90.1% 98.9% 96.4% 95.6% Commercial( 1 ) 90.5% 99.8% 96.8
Slide 26: Appendix
Appendix Please refer to the Company’s press release of February 14, 2013 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 26
Slide 27: Our Team
Our Team Euroseas Ltd Eurobulk Ltd Aristides J. Pittas (52), Chairman & CEO since Marcos Vassilikos (53), Managing Director since inception (2005), President of Eurobulk Ltd. since 1994 2005. 27+ year involvement in shpping. Managed the 27+ years involvement in shipping. Previously Pittas family int
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