Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2010 Earnings Presentation
25 slides from Euroseas's earnings presentation, Feb 22, 2011
Slide 1: Quarter & Year Ended December 31, 2010 Earnings Presentation
Quarter & Year Ended December 31, 2010 Earnings Presentation February 22, 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: 2010 Third Quarter & First Nine Months Overview
2010 Third Quarter & First Nine Months Overview • Financial Highlights - 2010: Fourth Quarter Full Year Net Revenues $12.8 m $52.5 m Net Loss ($0.9) m ($0.03) / ($6.6) m ($0.21) / share(2) share(2) Adj. Net Loss(1) ($3.9) m ($0.12) / ($4.3) m ($0.14) / share(2) share(2) Adj. EBITDA(1) $1.0 m $14.4 m
Slide 4: 2010 Developments
2010 Developments » Euromar, a joint venture of Euroseas with Eton Park and Rhône Capital, was formed in March 2010 with a total capital commitment of $175m • Euroseas committed $25m for a participation of about 14.3% • 6 vessels were acquired to-date with about half of the committed funds • Capacit
Slide 5: 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 6: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CMA-CGM TELOPEA(1) Intermediate 37,180 2,785 2007 EM ATHENS Intermediate 32,350 2,506 2000 EM CHIOS Intermediate 32,350 2,506 2000 MAERSK NAIROBI Intermediate 33,771 2,556 2001 EM HYDRA Handy 23,570 1,740 2005 EM SPETSES Handy 23,570 1,740 2007 Total 6
Slide 7: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 22nd consecutive $0.4 20% dividend of $0.06 per share for the fourth quarter of 2010 quarterly dividend annualized yield • Annualized yield of about 6.25% (1) $0.3 15% • Intention to maintain policy of providing healthy dividends $0.2 10% throughout marke
Slide 8: 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 8
Slide 9: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 (4) » Operational fleet utilization rate in excess of 98.5% over last 5 years 8,000 $ / day • Outstanding safety and environmental record 6,000 • For 2010Q4, operational fleet utilization 99.0% 4,000 and commercial 99.7% 2,
Slide 10: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100+ % in 2011 / 50% in 2012 / 8% in 2013 MONICA P Spot Pool/115%FFA -$16500-$23500 PANTELIS $17,500 ARISTIDES NP $ 14,950 ELENI P $ 16,500 IRINI $14,000 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '12 Q4 '13 Physical TC contr
Slide 11: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: 60+ % in 2011 / 5% in 2012 / 0% in 2013 Container Ship Vessels JONATHAN P $9,000 Multi-purpose Vessel MANOLIS P $7,699 Optional periods NINOS $6,800 KUO HSIUNG $5,300 AGGELIKI P $7,000 MAERSK NOUMEA Annual Options till August '14 @ $18,735/$19,240/
Slide 12: Market Overview
Market Overview
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2007 2008 2009 2010 2011f 2012-15f USA 2.5 1.1 (1.8) -2.6 (-1.6) 2.8 (2.7) 3.0 (2.3) 2.8 Eurozone 2.7 0.8 (1.8) -4.1 (-2.0) 1.8 (1.0) 1.5 (1.5) 1.8 Japan 1.9 -0.7 (1.4) -6.3 (-2.6) 4.3 (1.7) 1.6 (1.5) 1.8 China 11.2 9 (10.1) 9.2 (6.7) 10.3 (10.0)
Slide 14: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 36.7% m dwt For delivery in m dwt 200 140 25.2% 2011/12+ (as of Jan- 140 About 22% of fleet 130 11): 130 180 Is over 20 yrs old 120 Cape 305/320 120 160 Panamax 376/485 88.7 110 62,5 110 15% H’max 372
Slide 15: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 48.9 % m teu m teu 7.2 2.2 Delivery schedule as of 1-1-2010 2.2 6.8 6.4 2.0 2.0 6.0 1.8 11.7% 1.8 5.6 5.2 1.6 1.6 3.48 9.4% 8.2% 4.8 4.4 24.5% 1.4 1.4 4.0 5.6% 1.2 1.2 3.6 3.2 14.8% 1.0
Slide 16: Market Trends & Opportunities – Bulkers
Market Trends & Opportunities – Bulkers » Trade growth turned out to be 11% p.a. in 2010 – a record year – this is what saved the markets! • Driven by China’s imports and global economic recovery • Congestion and changing trade patterns for 2010 also influenced trade demand » Drybulk trade growth is
Slide 17: Market Trends & Opportunities - Containerships
Market Trends & Opportunities - Containerships » Containerized trade growth was 12% for 2010 and is expected to remain around 10% for 2011 • Charter rates for feeder and up to Panamax size vessels have lagged those of larger vessels; laid- up fleet down to 2% • Key uncertainty for trade: world growt
Slide 18: Euroseas Market Position
Euroseas Market Position Euroseas is Ideally positioned in view of the developing market trends » To be protected by any weakness in the drybulk market in 2011 • We are 100% covered in 2011 and 50% in 2012 at an average gross TCE rate in excess of $16,000/day » To benefit from anticipated increase i
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Highlights: 4th Quarter and Full Year of 2009 and 2010
Financial Highlights: 4th Quarter and Full Year of 2009 and 2010 Fourth Quarter Full Year (in million USD except per change change share amounts) 2009 2010 % (4) 2009 2010 % (4) Net Revenues $16.5 $12.8 -22.3% $63.8 $52.5 -17.7% Net Income ($16.3) ($0.9) ($15.6) ($6.6) (Gain) / loss on derivatives &
Slide 21: Fleet Data for 4th Quarter and Full Year of 2009 and 2010
Fleet Data for 4th Quarter and Full Year of 2009 and 2010 Fleet Statistics Fourth Quarter Full Year 2009 2010 2009 2010 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.68 16.00 16.30 15.53 Utilization Rate (%) Overall(1 ) 93.8% 98.7% 94.8% 99.2% Commercial(1 ) 94.7% 99.7% 95.5%
Slide 22: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 2/15/2011 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX $ 5,500 million 9.9 $15 3.7 0.0 G&A $ 800 1.0 2.2 9.6 Interest $ 650 $10 13.8 7.3 Drydock $ 550 11.6 12.5 $5 11.2 11.0 6.4 Loan Rpmt $
Slide 23: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ December 31, 2010: about $ 40m • $34.3 m unrestricted – abt $5.7m working capital and restricted » Debt: $88.4 m as of December 31, 2010 • Debt to Capitalization ratio about 29% • Debt / market value of fleet around 40% » About $35 m equity to fund further growth
Slide 24: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 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 Canter
Slide 25: Appendix
Appendix Please refer to the Company’s press release of February 22, 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