Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Investor Presentation (March 2014)
27 slides from Euroseas's investor presentation, March 2014
Slide 1: Company Presentation March, 2014
Company Presentation March, 2014
Slide 2: Introduction & Milestones
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 • Containerships – transporting dry and refrigerated cargoes » Corporate History • Formed in June 2005; backed
Slide 3: Euroseas Strategic Evolution
Euroseas Strategic Evolution PREF. EQUITY A traditional Greek shipping / FLEET RENEWAL company that has adapted its strategy to the changing times and opportunities… PRIVATE 2014 EQUITY PUBLIC 2010-2013 MARKETS 2005-2007 CONTAINER- SHIPS … building on its time-tested strengths: love for operating sh
Slide 4: Recent Developments
Recent Developments Ordered 2 Ultramax Drybulk Carriers (November 2013) Chinese shipyard / Price about $28m each / Deliveries scheduled in 2015Q4 and 2016Q1. Convertible preferred equity raising (January 2014) Sold $30.7m of Convertible Preferred Stock with net proceeds of about $29m,Tennenb
Slide 5: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Acquisition Name Type DWT TEU Built Year Hull No DY160 Ultramax 63,500 2015 2013 Hull No DY161 Ultramax 63,500 2016 2013 TBN Panamax 76,466 - 2004 2014 Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,110 - 1997 2009 Aristides NP Panamax
Slide 6: Euromar Joint Venture
Euromar Joint Venture Size Year Original capital commitment has Name Type DWT TEU Built been contributed: AKINADA BRIDGE Post-panamx 70,239 5,610 2001 CAP EGMONT Intermediate 41,850 3,091 2007 Total capital invested $175m .. EM ASTORIA Intermediate 35,600 2,788 2004 ..of which $25m are from EM
Slide 7: Market Overview
Market Overview
Slide 8: Market Highlights – Dry Bulk Market Review – 2013Q4
Market Highlights – Dry Bulk Market Review – 2013Q4 Bulkers: The BDI (Charter Index) went up around 15% during Q4 due to the continuous strength of Capesizes approaching 2200; has recently been around in the 1400-1500 range. Current (March 2014) 1-yr TC rates are around $31,000/day for Capes, $1
Slide 9: World Economic Growth
World Economic Growth US is the growth engine but political & economic uncertainties globally remain Positives: US growth continues allowing the Fed to begin tapering. The IMF increased its 2014 world growth estimate to 3.7% in 2014, due to faster than expected growth in the developed markets.
Slide 10: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2010 2011 2012 2013 2014 2015 2016 USA 2.8 (2.7) 1.8 (3.0) 2.8(1.8) 1.9(1.2) 2.8(2.6) 3.0 (3.4) 3.5 Eurozone 1.8 (1.0) 1.5 (1.5) -0.7 (-0.5) .-0.4(-0.4) 1.0(1.0) 1.4 (1.4) 1.5 Japan 4.3 (1.7) -0.6 (1.7) 1.4(1.7) 1.7(2.0) 1.7(1.2) 1.0 (1.1) 1
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 54% For delivery in 200 m Beginning of 14/15(/16as of Jan-14): 10% of the fleet is 180 Year Cape 127/103/79 89.6 over 20 yrs old 160 orderbook Panamax 302/103//51 160 (yellow bar) 140 H’max 328/213/10
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) For delivery in /4/15/16(as of Jan--:14 Ppmx 166/135/46 m TEU m teu Pmx 3000+ 8/1/1 6.8 37.3 % 2.2 m 2-3000 15/22/6 6.4 33.4% 2.0 1-2000 36/24/6 6.0 5.6 1.8 100-999 6//1/0 5.2 9.5% 1.6 8.2% 4
Slide 13: Outlook Summary
Outlook Summary Bulkers We anticipate that the supply/demand balance will slightly tilt in favor of demand in 2014 and 2015 and we therefore expect rates to improve albeit not dramatically. If new incremental deliveries in 2016 do not exceed 4% of the fleet, we would expect charter rate to remai
Slide 14: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 15: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 69% 2014 based on max durations 2013 2014 Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q3 Q4 Q1 Q2 Q3 Q4 ELENI P Spot Pool BPI4TC Related Charter MONICA P $7,500 PANTELIS 11,200+50/50 profit share $12,500 ARISTIDES N.P. $7,500 Min TC P
Slide 16: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 59% in 2014 based on max durations 2014 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 JOANNA $7,500 MARINOS $7,150 MANOLIS P $7,200 EVRIDIKI G $8,000 TIGER BRIDGE $6,800 $9,500 KUO HSIUNG $7,700 $1-YR Option @$11,500 CPT COSTAS $
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 2013Q4, operational fleet utilization 98.8% 5,000 4,000 and com
Slide 18: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities $/day 1-Year Time Charter Rate $m 10-yr old Price Historical Range 90,000 90 80,000 80 M ax, 2 0 0 0 - 2 0 13 Panamax 75,000 dwt A ver ag e, 2 0 0 0 - 2 0 13 70,000 Containership 1700 teu 70 M in, 2 0 0 0 - 2 0 13 60,000 60 C ur r ent , F eb - 14 50,000 50
Slide 19: Financial Overview
Financial Overview
Slide 20: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 02/21/2014 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough estimate for next 12 months: $25 $20 $/day OPEX $ 5,700 million $15 1.0 2.2 4.9 4.6 10.7 G&A $ 820 9.4 $10 Interest $ 550 $5 12.5 11.2 11.0 9.4 6.7 Drydock $ 330 7.4 5.8 3.2 Loan R
Slide 21: Balance Sheet & Other Data
Balance Sheet & Other Data Cash @ December 31, 2013: $ 19.3m $11.4m unrestricted – and about $7.9m of restricted funds and retention accounts Total Cash Proforma for Convertible Preferred proceeds plus equity: $63 m Debt: $45.6m as of December 31, 2013 Debt to Capitalization ratio about 30
Slide 22: Strategy & Growth
Strategy & Growth We are determined to grow Euroseas • Increase capital base – Already added $45m+ of new capital in 2014 – More capital to be raised • Expand and renew fleet – Already ordered and acquired vessels in the drybulk sector where near term focus is – Also evaluating opportunities in th
Slide 23: Our Team
Our Team Euroseas Ltd Eurobulk Ltd Aristides J. Pittas (54), Chairman & CEO since Marcos Vassilikos (54), Managing Director since inception (2005), President of Eurobulk Ltd. since 1994 2005 27+ year involvement in shipping. Managed the 27+ years involvement in shipping. Previously Pittas family int
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: Financial Overview
Appendinx: Financial Overview
Slide 26: Financial Highlights: 4th Quarter and Full Year of 2012 and 2013
Financial Highlights: 4th Quarter and Full Year of 2012 and 2013 Fourth Quarter Full Year (in million USD except per change change share amounts) 2012 2013 % (4) 2012 2013 % (4) Net Revenues $12.4 $9.7 -22.0% $52.5 $39.2 -25.4% Net Income ($2.0) ($86.1) ($13.2) ($103.4) (Gain) /Loss on Sale of Vesse
Slide 27: Fleet Data for 4th Quarter and Full Year of 2012 and 2013
Fleet Data for 4th Quarter and Full Year of 2012 and 2013 Fleet Statistics Fourth Quarter Full Year 2012 2013 2012 2013 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.00 14.00 15.21 14.56 Utilization Rate (%) Overall( 1 ) 98.9% 98.8% 95.6% 95.7% Commercial( 1 ) 99.8% 100.0% 96.