Euroseas Ltd. · NASDAQ:ESEA
Euroseas — H1 2011 Earnings Presentation
25 slides from Euroseas's earnings presentation, Aug 10, 2011
Slide 1: Three- And Six-Month Period Ended June 30, 2011 Earnings Presentation
Three- And Six-Month Period Ended June 30, 2011 Earnings Presentation August 10, 2011
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: 2011 Second Quarter & First Half Overview
2011 Second Quarter & First Half Overview • Financial Highlights - 2011: Second Quarter First Half Net Revenues $15.6 m $29.8 m Net Income / (Loss) $0.03 m $0.00 / ($0.6) m ($0.02) / share(2) share(2) Adj. Net Income(1) $0.02m $0.00 / ($1.3) m ($0.04) / share(2) share(2) Adj. EBITDA(1) $5.0 m $8.7 m
Slide 4: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 24th consecutive $0.4 20% dividend of $0.07 per share for the quarterly dividend annualized yield first quarter of 2011 $0.3 15% • Annualized yield of about 6.9% (1) • Intention to maintain policy of $0.2 10% providing healthy dividends throughout market
Slide 5: Other Developments
Other Developments • One more ship drydocked in 2011Q2 / four year-to-date • One more drydock in Q3 to be done for the year • Next drydockings currently expected in the second half of 2012 • All vessels are employed at rates contributing positively to our cash flow • Eight of our container vessels h
Slide 6: Keeping the Course….
Keeping the Course…. • Exposure to the “right” sectors • Containership feeders which face lower deliveries • Despite recent rate weakness we expect a stronger performance for that sector • Protected in the seemingly vulnerable drybulk sector • Fully covered in 2011 and increasing coverage with upsid
Slide 7: 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 8: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built EM ASTORIA* Intermediate 35,600 2,788 2004 CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 MAERSK NAIROBI Intermediate 33,771 2,556 2001 EM ATHENS Intermediate 32,350 2,506 2000 EM CHIOS Intermediate 32,350 2,506 2000 EM HYDRA Handy 23,570 1,740 2005 EM
Slide 9: Market Overview
Market Overview
Slide 10: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2008 2009 2010 2011f 2012f 2013-16f USA 1.1 (1.8) -2.6 (-1.6) 2.8 (2.7) 2.5 (2.8) 2.7 (2.7) 2.7 Eurozone 0.8 (1.8) -4.1 (-2.0) 1.8 (1.0) 2.0 (1.6) 1.7 (1.8) 1.8 Japan -0.7 (1.4) -6.3 (-2.6) 4.3 (1.7) -0.7 (1.4) 2.9 (2.1) 1.4 China 9 (10.1) 9.2 (6.
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) For delivery in 40.8% 25.2% 2011/12+ (as of Jul- m dw t m dwt m dw t 200 About 12% of fleet 140 11): 140 Is over 25 yrs old 130 Cape 223/347 130 180 105.3 120 Panamax 294/596 120 160 16.6% H’max 311/485 110
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU m teu m teu 7.6 46.8 % 2.2 2.2 7.2 6.8 2.0 2.0 6.4 11.7%--start of 6.0 1.8 year forecast 1.8 5.6 2.70 5.2 1.6 9.8% 9% 1.6 4.8 9.4% 4.4 1.4 1.4 4.0 24.6% 1.2 1.2 3.6 1.14 5.6% 3.2 0.64 1
Slide 13: Summary of Market Trends – Our View Has Not Changed
Summary of Market Trends – Our View Has Not Changed » Drybulk– The current low market environment is expected to continue • Drybulk trade growth is still expected to be healthy for 2011 but… • .. the fleet is growing at a higher pace • Record scheduled deliveries in 2011 (mainly) and 2012 even after
Slide 14: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 15: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100+ % in 2011 / 67% in 2012 / 29% in 2013 MONICA P Spot Pool/115%FFA -$16500-$23500 $11,200 + 50% profit share 'til March 2014, then $14,000 1- PANTELIS $17,500 year option for charterer ARISTIDES NP $ 14,950 ELENI P $ 16,500 IRINI $14,000 Q1 '11 Q2 '11
Slide 16: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (8/5/2011): 88% in 2011H2 / 30% in 2012 / 3.9% in 2013 Container Ship Vessels CAPTAIN COSTAS $4,250 $10,250 Optional periods Multi-purpose Vessel JONATHAN P $9,000 $11,250 YM PORT KELANG $5,900 DD $5,900 DESPINA P OF $8,500 TIGER BRIDGE $4,000 $7,50
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% over last 5 years 8,000 $ / day • Outstanding safety and environmental record 6,000 • For 2011Q2, operational fleet utilization 99.7% 4,000 and commercial 98.3% 2,000
Slide 18: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year TC Rates 90,000 80,000 Panamax 72-75,000 dwt Containership 1700 teu 70,000 60,000 50,000 $ / day 40,000 30,000 20,000 ? ? 10,000 0 2000-01 2002-01 2004-01 2006-01 2008-01 2010-01 Page 18
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Highlights: 2nd Quarter and 1st Half of 2010 and 2011
Financial Highlights: 2nd Quarter and 1st Half of 2010 and 2011 Second Quarter First Half (in million USD except per change change share amounts) 2010 2011 % (4) 2010 2011 % (4) Net Revenues $13.7 $15.6 14.0% $27.5 $29.8 8.6% Net Income $0.5 $0.0 -94.9% ($2.5) ($0.6) (Gain) / loss on derivatives & u
Slide 21: Fleet Data for 2nd Quarter and 1st Half of 2010 and 2011
Fleet Data for 2nd Quarter and 1st Half of 2010 and 2011 Fleet Statistics Second Quarter First Half 2010 2011 2010 2011 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.11 16.00 15.06 16.00 Utilization Rate (%) Overall(1 ) 99.3% 98.5% 99.6% 98.0% Commercial(1 ) 100.0% 98.6% 100.0
Slide 22: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 8/1/2011 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 0.0 OPEX $ 5,600 million 9.9 $15 G&A $ 800 1.0 2.2 9.6 Interest $ 650 $10 17.5 7.3 Drydock $ 200 11.6 12.5 $5 11.2 11.0 6.4 Loan Rpmt $ 2,350
Slide 23: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ June 30, 2011: $ 35.5m • $29.5 m unrestricted – abt $6m working capital and restricted » Debt: $80.8 m as of June 30, 2011 • Debt to Capitalization ratio about 27% • Covenants fully satisfied » About $30 m cash equity to fund further growth • $10m committed to be
Slide 24: 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 25: Appendix
Appendix Please refer to the Company’s press release of August 10, 2011 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