Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2009 Earnings Presentation
22 slides from Euroseas's earnings presentation, May 22, 2009
Slide 1: Three Months Ended March 31, 2009 Earnings Presentation
Three Months Ended March 31, 2009 Earnings Presentation M 22, May 22 2009
Slide 2: Forward-Looking Statements
Forward-Looking g Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward forward-looking looking statements are based on current management expectations that involve risks and uncerta
Slide 3: 2009 First Quarter Overview
2009 First Quarter Overview • Financial Highlights g g First Quarter 2009: Net Revenues: $ 15.3 million Net income: $ 3.9 million, or, $0.13/share, basic & diluted Adj.j Net income(1): $ 2.0 million,, or,, $0.07/share,, basic & diluted Adj. EBITDA(1): $ 6.2 million • Euroseas: Positioned to exploit
Slide 4: Dividend Declaration
Dividend Declaration $0.5 25% • Declared dividend of $0.10 per share for the $0.4 20% first quarter q u arterly d ivid en d an n u alized yieeld • Annualized yield of about 7.0% 7 0% ((1)) $0.3 15% • One of the very few companies still paying dividend $0.2 10% • Intention to maintain policy of provi
Slide 5: Year to Date Developments
Year to Date Developments p » Fleet renewal program continued • Bought ‘97-blt Eleni P for $18.4m and ’98-blt Monica P for $18.0 • Sold Nikolaos P and Ioanna P both ’84-blt for about $6.0 combined • Minimal cash outflow after securing $10m loan for each purchase » Employment developments • Aristides
Slide 6: Current Fleet
Current Fleet Name Type DWT TEU Built P Eleni P Panamax 72,119 - 1988 Irini Panamax 69,734 - 1993 Aristides NP Panamax 69,268 - 1997 Monica P Handymax 46,667 - 1998 Gregos Handysize 38,691 - 1984 Maersk Noumea Intermediate 34,677 2,556 2001 Tiger Bridge Intermediate 31,627 2,228 1990 Artemis Interme
Slide 7: Euroseas Strategy
Euroseas Strategy gy • Selectively acquire vessels • At depressed market it is the time to buy younger ships • Consistent evaluation framework of each investment / project • Focus on keeping operating costs low • One O off the h llowest cost structure amongst public bli companies i • Controlling cos
Slide 8: Vessels Employment Chart - Bulkers
Vessels Employment p y Chart - Bulkers Coverage: about 95% in 2009 / 82% and 2010 NIKOLAOS P. Spot Sold ELENI P Spot $15,350 Spot Spot GREGOS / 67% FFA @ 7,000 / 80% FFA @ 7,450 MONICA P. Spot pool / 100% FFA @ 10,250 Spot / 100% FFA @ 10,950 IRINI Spot pool / 100% FFA @ 10,250 Spot / 100% FFA @ 10,
Slide 9: Vessels Employment Chart - Containerships
Vessels Employment p y Chart - Containerships p 65% coverage in 2009 / 29% coverage in 2010 ARTEMIS laid-up DESPINA P 15k laid-up Container Ship Vessels JONATHAN P $16,500 laid-up Multi-purpose Vessel KUO HSIUNG 11k 6k $4,100 YM XINGANG I $26,650 MANOLIS P $15,800 TIGER BRIDGE 16.5k $7,500 NINOS $8,
Slide 10: Market Overview
Market Overview
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping pp g Demand Growth Real GDP (% p.a.) 2006 2007 2008E 2009 2010 2011-13 USA 3.3 2.5 1.1 2.7 ((-1.6)) 1.4 ((1.6)) 1.8 ((2.5)) Eurozone 3.0 2.7 0.8 -3.4 (-2.0) 0.2 (0.2) 1.8 (2.0) Japan 2.8 1.9 -0.7 -6.5 (-2.6) 0.3 (0.6) 1.2 (2.0) China 10.5 11.2 9.0 6.0 (6.7) 7.0 (8.0) 8.6 (8.5) I
Slide 12: Drybulk Fleet Age Profile & Orderbook Delivery Schedule
Drybulk y Fleet Age g Profile & Orderbook Deliveryy Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 130.0 29.2% 120 23.3% 120.0 110 110.0 100 100.0 48.2 90 90.0 60.40 13.3% 80 80.0 17.8% 17.1% 70 15.0% 70.0 60 39.40 60.0 23.4 27.1 12.7% 13.0% 36.3 50 50.0 10.2% 7.5 29.40 15.7 40 7.2
Slide 13: Containership Fleet Age Profile & Orderbook Delivery Schedule
Containership p Fleet Age g Profile & Orderbook Deliveryy Schedule Containership Age Profile(1) Container Orderbook (1) m TEU m TEU 6.4 48.0 % 2.0 15.2% 6.0 12.7% 16.0% 5.6 10.3% 5.2 1.6 4.8 4.4 2.94 13 .8% 0 92 0.92 0.79 4.0 1.2 3.6 1.31 3.2 0.6 20.9% 1.5 2.8 16.4% 0.8 2.4 1.60 0.44 0 56 0.56 2.0 1
Slide 14: Market Trends & Opportunities
Market Trends & Opportunities pp » 2009 is going to be a challenging year • Trade growth is expected to be negative – Q1 drybulk market strength based on Chinese ore imports, congestion, piracy effect and only 1% net fleet growth • Scheduled deliveries increase during the rest of 2009 – Cancellation
Slide 15: Financial Overview
Financial Overview
Slide 16: Financial Highlights: 1st Quarter '08 and '09
Financial Highlights: g g 1st Quarter ‘08 and ‘09 First Quarter as as (in million USD except per reported(5) adjusted(5) change share amounts) 2008 2008 2009 % (4) Net Revenues $32.8 $32.8 $15.3 -53.3% Net Income $15.2 $13.6 $3.9 -71.1% Capital Gains - - $0.1 U Unrealized li d (gain) ( i ) loss, l d
Slide 17: Fleet Data for 1st Quarter of 2008 and 2009
Fleet Data for 1st Quarter of 2008 and 2009 Fleet Statistics First Quarter 2008 2009 ( (unaudited) dit d) (unaudited) ( dit d) Number of vessels 15.00 15.70 Utilization Rate (%) Overall 99.3% 99 3% 92.6% 92 6% Commercial 99.4% 93.6% Operational 99.9% 98.9% Averages in usd/day/vessel Time Charter Equ
Slide 18: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 5/21/2009 Cash Flow Breakeven $30 » $12.3 m less debt repayments in 2009 • $2,100 / day / vessel lower cash $25 $12.3m lower debt flow breakeven payments in 2009 $20 » Cash Flow Breakeven rough estimate for next 12 months: million $15 $25.6 $0.0 $
Slide 19: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ March 31, 2009: $ 56.3m • Also restricted cash of about $8.6m » D bt $62.8 Debt: $62 8 m as off M March h 31 31, 2009 • Debt to Capitalization ratio about 19.6% • Covenants fully satisfied • New debt of 10m for Eleni P – Proforma: $66.3m unrestricted cash / $72.8m
Slide 20: Panamax & 1700 teu Containership 10-yr Old Prices & 1-yr TC Rates
Panamax & 1700 teu Containership p 10-yr y Old Prices & 1-yr y TC Rates 1-Year TC Rates Secondhand Price, 10-Year Old Vessels 90,000 90 80,000 80 Panamax 72-75,000 dwt Panamax 72-75,000 dwt Containership 1700 teu 70 Containership 1700 teu 70,000 60 000 60,000 60 million USD 50,000 50 $ / day 40,000
Slide 21: 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. 11 Canterbu
Slide 22: Appendix
Appendix pp Please refer to the Company’s Company s press release of May 21, 21 2009 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 22