Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2009 Earnings Presentation
25 slides from Euroseas's earnings presentation, Nov 16, 2009
Slide 1: Three & Nine Months Ended September 30, 2009 Earnings Presentation
Three & Nine Months Ended September 30, 2009 Earnings Presentation November 16, 2009
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: 2009 Third Quarter & First Nine Months Overview
2009 Third Quarter & First Nine Months Overview • Financial Highlights - 2009: Third Quarter First Nine Months Net Revenues $17.2 m $47.3 m Net Income $2.2 m $0.07 / $0.7 m $0.02 / share((2)) share((2)) Adj. Net Income / ($0.3) m ($0.01) / $2.1 m $0.07 / (Loss)(1) share(2) share(2) Adj. EBITDA(1) $5
Slide 4: A Volatile & Challenging Market Environment
A Volatile & Challenging Market Environment 1-Year TC Rates Market Environment 90,000 • While dry bulk rates rebounded after the Panam ax 72-75,000 dw t 80,000 October 2008 crash to profitable levels by Containe rs hip 1700 te u any historical standards… 70,000 • …Containership rates hit lowest poss
Slide 5: Euroseas Strategy - Investment
Euroseas Strategy - Investment Selectively acquire & sell vessels 10-yr old Price Historical Range • Used the opportunity of dramatically lower 90 dry bulk prices earlier this year to buy three 80 M ax, 19 9 9 - 2 0 0 9 vessels (’97, ’98 and ’00 built) and sell two A ver ag e, 19 9 9 - 2 0 0 9 ’84 b
Slide 6: Current Fleet
Current Fleet Name Type DWT TEU Built Year Acq'd Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,119 - 1988 2009 Irini Panamax 69,734 - 1993 2002 Aristides NP Panamax 69,268 - 1997 2006 Monica P Handymax 46,667 - 1998 2009 Gregos Handysize 38,691 - 1984 2007 Maersk Noumea Intermediate 34,677
Slide 7: Euroseas Strategy – Costs & Funding
Euroseas Strategy – Costs & Funding • Focus on keeping operating costs low • One of the lowest cost structure amongst public companies • total operating costs including G&A in the third quarter: $4,755 / vessel / day (it would be about $600-650 more if 3 vessels currently laid-up were operating) • C
Slide 8: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 17th consecutive dividend of $0.4 20% $0.05 per share for the third quarter q u arterly d ivid en d an n u alizzed yield • Annualized yield of about 5% (1) $0.3 15% • O Onee oof thee very e y few e co companies pa es sstill pay payingg dividend $0.2 10% •
Slide 9: Euroseas Strategy - Employment
Euroseas Strategy - Employment • Balance employment between period and spot • Try to secure enough contracted employment to cover cash costs over next 12 months whenever possible and commercially sound • Employ balance opportunistically depending on market trends and views • Dry Bulkers • Mostly cov
Slide 10: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers 100% coverage in Nov-Dec 2009 / 80% in 2010 / 17% in 2011 PANTELIS P $25,200 $17,500 $17,500 ELENI P $15,350 Spot GREGOS / 150% FFA @ 7,000 / 80% FFA @ 7,450 Spot pool / 100% FFA @ MONICA P. Spot / 100% FFA @ 10,950 10,250 Spot pool / 100% FFA @ IRINI Spot / 100% F
Slide 11: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships 57% coverage in Nov-Dec 2009 / 29% in 2010 / 14% in 2011 ARTEMIS laid-up Container Ship Vessels DESPINA P laid-up Multi-purpose Vessel JONATHAN P laid-up MASTRO NICOS $3,850 $3,750 $5,900 MANOLIS P $15,800 $3850 $4000 Contex 1700 less 10% CAPTAIN COSTAS 1850
Slide 12: Market Overview
Market Overview
Slide 13: Panamax & 1700 teu Containership 10-yr Old Prices & 1-yr TC Rates
Panamax & 1700 teu Containership 10-yr Old Prices & 1-yr TC Rates 1-Year TC Rates Secondhand Price, 10-Year Old Vessels 90,000 90 Panamax 72-75,000 dwt Panam ax 72-75,000 dw t 80,000 Containership 1700 teu 80 Containership 1700 teu 70,000 70 60,000 60 million USD 50,000 50 $ / day 40,000 40 30,000 3
Slide 14: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a.) 2006 2007 2008 2009F 2010F 2011-13F USA 3.3 2.5 1.1 -2.7 (-2.7) 1.5(1.4) 3.4 (1.8) Eurozone 3.0 2.7 0.8 -4.2 (-4.8) 0.3 (0.3) 1.7 (1.8) Japan 2.8 1.9 -0.7 -5.4 (-6.0) 1.7 (1.7) 2.7 (1.2) China 10.5 11.2 9.0 8.5 (7.5) 9.0 (8.0) 10.4 (8.6) India 9.5
Slide 15: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 30% m dwt 140.0 120 For delivery in 2010 22.8% 130.0 110 (vessels): 120.0 100 Cape 324 110.0 Panamax 276 50.0 90 13.5% 100.0 H’max 362 17.3% 17.8% 80 57.60 90.0 16.9% Handies 293 80.0 70 70 0 70.0 12
Slide 16: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU m TEU 6.4 48.1 % 2.0 6.0 14.6% 13.0% 16.0% 5.6 9.8% 5.2 1.6 4.8 4.4 3.02 13 .8% 0.79 0.9 4.0 1.2 1.22 3.6 3.2 21.5% 0.6 2.8 1.466 15.8% 0.8 2.4 1.63 0.44 2.0 1.21 0.51 0.45 0.40 1.6 6.7
Slide 17: Market Trends & Opportunities - Bulkers
Market Trends & Opportunities - Bulkers » Global economic recovery appears on schedule evidenced by IMF’s continuous upward revisions of expected growth » China drives demand helped by other factors like longer hauls, port congestion and piracy effects » Oversupply fears still a major concern • 32.8
Slide 18: Market Trends & Opportunities - Containerships
Market Trends & Opportunities - Containerships » Freight rates, charter rates and vessel prices at all time lows below operating cost levels » All container lines face severe problems, many relying on state bail-outs » Percentage of fleet in lay up peaked end March at around 12% • Has fallen back to
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Highlights: 3rd Quarter and First Nine Months of 2008 and 2009
Financial Highlights: 3rd Quarter and First Nine Months of 2008 and 2009 Third Quarter First Nine Months as as (in million USD except per adjusted(4) change adjusted(4) change share amounts) 2008 2009 % (3) 2008 2009 % (3) Net Revenues $35.5 $17.2 -51.6% $102.7 $47.3 -53.9% Net Income $14.5 $2.2 -84
Slide 21: Fleet Data for 3rd Quarter and First Nine Months of 2008 and 2009
Fleet Data for 3rd Quarter and First Nine Months of 2008 and 2009 Fleet Statistics Third Quarter First Nine Months 2008 2009 2008 2009 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.79 15.48 16.17 Utilization Rate (%) Overall( 1 ) 98.0% 96.2% 98.7% 95.2% Commercial( 1 ) 1
Slide 22: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 11/12/2009 Cash Flow Breakeven $30 » $11.8 m less debt repayments in 2009 • About $2,000 / day / vessel lower $25 $11.8m lower debt cash flow breakeven payments in 2009 $20 » Cash Flow Breakeven rough estimate f next 12 months: for million n $15 4
Slide 23: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ September 30, 2009: $ 42.7m • Also restricted cash of about $10 m » Debt: $79.1 m as of September 30, 2009 • Debt to Capitalization ratio about 24% » About $30 m equity to fund further growth • Double purchasing power when funds are coupled with conventional debt
Slide 24: 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 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 16, 2009 for financial statements and reconciliation of Adjusted j EBITDA and “Operating” p g EPS to Net Income and Cash Flow from Operations, as well as Reconciliation of Net Income to Adjusted Net Income Page 25