Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2012 Earnings Presentation
25 slides from Euroseas's earnings presentation, Nov 8, 2012
Slide 1: Earnings Presentation Three- and Nine-Month Period Ended September 30, 2012
Earnings Presentation Three- And Nine-Month Period Ended September 30, 2012 November 8, 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 Third Quarter & First Nine Months Overview
2012 Third Quarter & First Nine Months Overview • Financial Highlights - 2012: Third Quarter First Nine Months Net Revenues $13.4 m $40.1 m Net Income / (Loss) ($0.8) m ($0.02)/ ($11.2) m ($0.30) / share(2) share(2) Adj. Net Income(1) ($0.6) m ($0.01)/ ($2.0) m ($0.05) / share(2) share(2) Adj. EBITD
Slide 4: Dividend Declaration
Dividend Declaration $0.5 25% Declared the 29th consecutive $0.4 20% dividend of $0.015 per share for the quarterly dividend annualized yield first quarter of 2012 $0.3 15% Annualized yield of about 5.4% based on the closing share price of $0.2 10% $1.11 on 11/7/2012 $0.1 5% $0.0 0% Page 4
Slide 5: Other Company Developments
Other Company Developments Charter renewals – all vessels are employed Tiger Bridge was extended with same charterers @ $5,500 for 1- 6 months Aggeliki P was extended at $6,500/day for 40-180 days Marinos was extended at $6,000/day for 2-12 months Manolis P was extended until min. Feb-13 a
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 Size Year Name Type DWT TEU Built Original capital commitment: $175m CAP EGMONT (1) Intermediate 41,850 3,091 2007 Partnership has called 75% EM ASTORIA Intermediate 35,600 2,788 2004 (about $131 million), and, has CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 about $44 mi
Slide 8: Market Overview
Market Overview
Slide 9: World Economic Growth
World Economic Growth » Despite some positive developments in the U.S. economy on growth and unemployment, uncertainties and concerns remain around: • U.S. handling of the “fiscal cliff” at the end of 2012; lack of prompt action will like affect adversely the economy in 2013 • Europe’s slowness to d
Slide 10: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2009 2010 2011 2012F 2013F 2014F 2015F USA -2.6 (-1.6) 2.8 (2.7) 1.8 (3.0) 2.2 (2.1) 2.1(2.2) 2.9 3.4 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.4 (-0.3) 0.2(0.7) 1.2 1.5 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 2.2(2.4) 1.2(1.5) 1.1 1.2 Chin
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 52.8% m dwt 6.5% of the For delivery in 12/13+ 200 fleet(down from 160 (as of Oct-12): above 10% 22.7% 180 Cape 104/179 recently) is over 140 25 yrs old Panamax 267/444 160 82.9 (scrapping is at 120 H
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU mm teu 7.2 Delivered 2012 to-date 6.8 40.4 % 2,2 6.4 2,0 6.0 5.6 29.2% 1,8 9.7% 5.2 9.0 1,6 9.4% 4.8 3.07 % 4.4 1,4 8.4% 4.0 1.3 5.6% Abt 1,2 3.6 15.8% 1,1 5.0% 3.2 1,0 0,84 2.8 1.14 1
Slide 13: Outlook Summary
Outlook Summary Drybulk Market Q4 has historically been strong. This has only been demonstrated in capesizes but even this rally seems to be running out of steam. Supply pressures will probably preclude any further rate recovery this quarter. Fleet is growing at a higher pace than trade, record
Slide 14: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 15: 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 16: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (as of Nov 1‘12): Abt 98% in 2012 / Abt 16 % in 2013 (based on min durations) NINOS $11,200 $7,375 $6,950 KUO HSIUNG $11,200 $7,375 $6,725 MANOLIS P $10,500 $7,000 $6,800 $6,200 $6,000 AGGELIKI P $12,500 $6,500 $6,500 MARINOS $ 6,750 $6,100 $6,000 T
Slide 17: 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 7,000 Outstanding safety and environmental record 6,000 $ / day For 2012Q3, operational fleet utilization 99.5% 5,000 4,000 and comme
Slide 18: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-yr old Price Historical Range 90,000 90 80,000 80 M ax, 2 0 0 0 - 2 0 11 Panamax 75,000 dwt 70,000 Containership 1700 teu 70 A ver ag e, 2 0 0 0 - 2 0 11 60,000 60 M in, 2 0 0 0 - 2 0 11 50,000 50 C ur r ent , N o vemb er - $ mil
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Highlights: 3rd Quarter and First Nine Months of 2011 and 2012
Financial Highlights: 3rd Quarter and First Nine Months of 2011 and 2012 Third Quarter Nine Months (in million USD except per change change share amounts) 2011 2012 % (4) 2011 2012 % (4) Net Revenues $16.2 $13.4 -17.5% $46.0 $40.1 -12.9% Net Income $0.6 ($0.8) $0.0 ($11.2) (Gain) /Loss on Sale of Ve
Slide 21: Fleet Data for 3rd Quarter and First Nine Months of 2011 and 2012
Fleet Data for 3rd Quarter and First Nine Months of 2011 and 2012 Fleet Statistics Third Quarter First Nine Months 2011 2012 2011 2012 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 15.00 16.00 15.28 Utilization Rate (%) Overall(1 ) 99.7% 98.5% 98.6% 94.6% Commercial(1 ) 100
Slide 22: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 09/30/2012 Cash Flow Breakeven $30 Balloon of $5m moved to 2016 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day 5 million 3.7 9.9 OPEX $ 5,750 $15 25.6 2.4 1.0 2.2 G&A $ 700 $10 4.6 Interest $ 650 7.3 13.8 12.5 9.4 Drydo
Slide 23: Balance Sheet & Other Data
Balance Sheet & Other Data Cash @ September 30, 2012: $ 45.4m $35.9 m unrestricted – and about $9.5m of restricted funds and retention accounts Cash per share amounts to about $1.00 (versus yesterday’s share price of $1.11) Debt: $65.0 m as of September 30, 2012 Debt to Capitalization rati
Slide 24: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. c/o Eurobulk 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 Cante
Slide 25: Appendix
Appendix Please refer to the Company’s press release of November 7, 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 25