Euroseas Ltd. · NASDAQ:ESEA
Euroseas — FY2008 Earnings Presentation
22 slides from Euroseas's earnings presentation, Feb 24, 2009
Slide 1: Three Months and Year Ended December 31, 2008 Earnings Presentation
Three Months and Year Ended December 31, 2008 Earnings Presentation February 24, 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: 2008 Fourth Quarter and Full Year Overview
2008 Fourth Quarter and Full Year Overview • Financial Highlights 2008: Fourth Quarter Full Year Net Revenues: $ 24.3 million $ 127.1 million Net income (loss): $ (22.6) million $ 23.6 million Adj. Net income: $ 7.0 million $ 48.1 million Adj. EBITDA(1): $ 13.1 million $ 78.9 million In 2008Q4: Adju
Slide 4: Dividend Declaration
Dividend Declaration $0.5 25% • We are continuing our dividend policy • One of the very few companies still paying $0.4 20% dividend q u a rte rly d iv id e n d • Declared dividend of $0.10 per share for a n n u a liz e d y ie ld $0.3 15% fourth quarter • Annualized yield of 9.5% (1) $0.2 10% • Tota
Slide 5: Panamax & 1700 teu Containership 1-yr TC Rates
Panamax & 1700 teu Containership 1-yr TC Rates 90,000 80,000 Panamax 72-75,000 dwt 70,000 Containership 1700 teu 60,000 50,000 $ / day 40,000 30,000 20,000 10,000 0 2000-01 2001-01 2002-01 2003-01 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 Source: Clarksons Page 5
Slide 6: Current Fleet
Current Fleet Name Type DWT TEU Built P Irini Panamax 69,734 - 1988 Aristides N.P. Panamax 69,268 - 1993 Carriers Drybulk Glorious Wind (tbr) Panamax 72,119 - 1997 Monica P Handysize 46,667 - 1998 Gregos Handysize 38,691 - 1984 Maersk Noumea Intermediate 34,677 2,556 2001 Tiger Bridge Intermediate 3
Slide 7: Acquisitions 2005-2009
Acquisitions 2005-2009 Euroseas avoided investing at the peak of the market except for Ioanna P 70 Ioanna P 60 Dry Bulk (Panamax) Containership (1700 teu) 50 million $, 15-yr old vessels 40 Gregos 30 Artemis Aristides NP Tiger BridgeMaersk Noumea Clan Gladiator 20 Xingang Manolis P Despina/Jonathan
Slide 8: Euroseas Strategy
Euroseas Strategy • Selectively acquire vessels • Started renewal of fleet (average age reduced by 1.5 years) • Bought Monica P 46,667dwt / ’98, Glorious Wind 72,119 dwt / ’97 • Sold Ioanna P 64,863 dwt / ’84, Nikolaos P 34,750 dwt / ’84 • About $30m incremental capital expenditure (of which about $
Slide 9: Vessels Employment Chart - Bulkers
Vessels Employment Chart - Bulkers About 75% coverage in 2009 and 2010 (after delivery of Glorious Wind) NIKOLAOS P. Spot Sold GLORIOUS WIND to be delivered in March 2009 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
Slide 10: Vessels Employment Chart - Containerships
Vessels Employment Chart - Containerships 54% coverage in 2009 / 26% coverage in 2010 ARTEMIS laid-up DESPINA P 15k Idle Container Ship Vessels KUO HSIUNG 11k 6k Idle Multi-purpose Vessel OEL INTEGRITY $16,500 TIGER BRIDGE $16,500 YM XINGANG I $26,650 MANOLIS P $15,800 NINOS $8,060 OEL TRANSWORLD $1
Slide 11: Market Overview
Market Overview
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a.) 2006 2007 2008E 2009 2010 2011-13 USA 3.3 2.5 1.1 (1.6) -1.6 (0.6) 1.6 (2.0) 2.5 (2.5) Eurozone 3.0 2.7 1.0 (1.2) -2.0 (0.6) 0.2 (1.3) 2.0 (2.1) Japan 2.8 1.9 -0.3 (0.7) -2.6 (0.6) 0.6 (1.3) 2.0 (2.5) China 10.5 11.2 9.0 (9.8) 6.7 (8.5) 8.0 (8.7)
Slide 13: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Panamax Dry Bulk Dry Profile(1) AgeBulker Dry Bulk Orderbook (1) m dwt m dwt 130.0 120 120.0 27.9% 19.6% 110 110.0 100 100.0 45.4 90 90.0 80 60.90 9.1% 80.0 18.0% 17.0% 17.3% 70 70.0 23.4 26.9 14.2% 60 60.0 12.9% 31.60 38.20 34.9 8.1 50 50.0 9.7% 16.
Slide 14: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.0 m TEU 16.7% 46.9% 5.6 2.0 13.0% 5.2 16.0% 4.8 10.9% 1.6 0.97 4.4 2.81 4.0 13.8% 0.79 3.6 1.2 1.3 3.2 2.8 0.6 21.2% 1.5 2.4 0.8 0.60 1.54 17.0% 0.44 2.0 1.17 0.43 1.6 0.40 1.2 0.62 0
Slide 15: Market Summary
Market Summary » 2009 is going to be a difficult year • Drybulk trade growth is expected to be negative / minimal growth in container trade • Scheduled deliveries at all time high levels in both sectors, about 17% • Cancellations / delays speculated between 20% and 50% according to various industry
Slide 16: Financial Overview
Financial Overview
Slide 17: Financial Highlights: 4th Quarter and Full Year '07 and '08
Financial Highlights: 4th Quarter and Full Year ‘07 and ‘08 (in million USD except per Fourth Quarter Full Year (4) share amounts) 2007 2008 % 2007 2008 % (4) Net Revenues $31.5 $24.3 -22.8% $82.1 $127.1 54.8% Net Income $15.3 -$22.6 nm $40.7 $23.6 -41.9% Capital Gains - - $3.4 - Impairment Loss - -
Slide 18: Fleet Data for 4th Quarter and Full Year of 2007 and 2008
Fleet Data for 4th Quarter and Full Year of 2007 and 2008 Fleet Statistics Fourth Quarter Full Year 2007 2008 2007 2008 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 14.63 16.00 11.46 15.62 Utilization Rate % 99.4% 96.0% 99.7% 98.0% Averages in usd/day/vessel Time Charter Equival
Slide 19: Rapid Debt Repayment
Rapid Debt Repayment Debt Debt Repayment Repayment Schedule Schedule –– As of 2/20/2009 As of 2/20/2009 Cash Cash Flow Flow Breakeven 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 » 2009 Cash Flow Bre
Slide 20: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ December 31, 2008: $ 73.9m • Also restricted cash of about $7.0m • Net cash outflow for vessel replacements about $10.5m » Debt: $56.0 m as of December 31, 2008 • Debt to Capitalization ratio about 17.5% • Covenants fully satisfied • New debt of 10m for Monica P •
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 Please refer to the Company’s press release of February 23, 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