Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2020 Earnings Presentation
20 slides from Euroseas's earnings presentation, Aug 12, 2020
Slide 1: Earnings Presentation Quarter Ended June 30, 2020
Earnings Presentation Quarter Ended June 30, 2020 August 12, 2020 1
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: 2020 Second Quarter Financial Highlights
2020 Second Quarter Financial Highlights in million USD except per share figures Q2 2020 Net Revenues 13.51 Net Income 1.29 Preferred Dividends (0.18) Net Income Attributable to Common 1.11 0.20 / share(2) Shareholders Adjusted Net Income Attributable to Common 1.39 0.25 / share(2) Shareholders(1) A
Slide 4: Recent Developments
Recent Developments S&P Highlights: • M/V Manolis P: o Vessel was initially sold in March for $2.72 million net proceeds, but the deal did not materialize as buyers failed to take delivery of the vessel due to Covid-19 circumstances. Sold anew for scrap on July for $2.07 million net proceeds • M/V
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 16 vessels with an average age of 15.8(1) years and a carrying capacity of 45.9k TEU 11x Feeder 5x Intermediate Avg. Age: 18.4 years(1) Avg. Age: 13.2 years(1) Carrying Capacity: 23.3k TEU Carrying Capacity: 22.6k TEU Size Name Type DWT TEU Year Bu
Slide 6: Chartering, Operational and Drydockings
Chartering, Operational and Drydockings Chartering: • Synergy Busan: extended until Aug-2020 at $12,900/day and further extended at $8,100/day till Nov-2020, plus 4-6 months option at $12,000/day • Synergy Antwerp: Fixed till Dec-2020 at $8,000 /day • EM Kea: Extended for 4-12 months at $8,100/day
Slide 7: Vessel Employment
Vessel Employment Coverage (as of June 30, 2020): About 58% for the remaining 2020 - (based on min durations) 2019 2020 2021 Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Q4 Q1 Q2 Q3 Q4 Q1 Q2 NINOS $7,750 $7,750 $7,250 $6,500 EM SPETSES $7,000 $7,000 $8,100 EM
Slide 8: Fleet Management & Operational Performance
Fleet Management & Operational Performance ESEA Highlights Daily costs per vessel(1) $/day 9,000 8,000 Operational fleet utilization rate in excess of 98.8% over last 5 years 7,000 • Outstanding safety and environmental record 6,000 • For 2020Q2, operational fleet utilization 99.7% and commercial
Slide 9: Market Overview
Market Overview 9
Slide 10: Containership Market Highlights – Q2 2020
Containership Market Highlights – Q2 2020 Time charter rates in Q2 across all containtainership sizes drew a negative picture but we have seen an improvement in July especially for larger sizes For feeder and intermediate size vessels an average drop of ~25% on the 6-12 month Timecharter rate ob
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth COVID-19 Pandemic has dramatically and negatively changed the economic & world trade environment for 2020 Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020e 2021e USA 2.6 1.5 2.3 2.9 2.3 -8.0(5.9) 4.5(4.7) Eurozone 2.0 1.8 2.4 1.8 1.2 -10.2(-7.5) 6.0(4.7) Japan
Slide 12: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook mTEU 1.8 For delivery in 20/21/22+ 8.0 25% 30% 28% 12% 6% 3.6% 5.6% 4.0% 4.9%(*) (as of Jul-20) 1.6 8000+: 30 / 56/ 21 7.0 3-7,999 4 / 7 / 0 0.7 0.1 1.4 100-2,999: 108 / 87 / 12 6.0 1.2 2.1 5.0 4.2%(*) 2.3 1.0 0.10 4.0 4.2 0.8 0.8 3.0 1.1
Slide 13: Outlook Summary
Outlook Summary The unknown duration of the pandemic and its financial consequences render any type of modeling very unreliable Our base case supply/demand analysis is based on a scenario where we experience a deep recession in 2020 (-4.9% GDP growth as per the IMF) with a strong recovery in 202
Slide 14: Market Snapshot
Market Snapshot Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – 10 Year Old Historical Price Range(1) $/day $m 45,000 20.0 $18.0 (Nov -2011 to Jan-2012) 40,000 35,000 15.0 30,000 25,000 Since the financial crisis of 2008 rates 10.0 stayed rather depressed within the 20,000 $5,500/day to $
Slide 15: Financial Overview
Financial Overview 15
Slide 16: Financial Highlights: First Quarter 2019 and 2020
Financial Highlights: First Quarter 2019 and 2020 Second Quarter Change First Half Change (in million USD except per share amounts) 2019 2020 % 2019 2020 % Net Revenues 8.1 13.5 67.2% 16.4 28.9 76.3% Net (Loss) / Income (0.7) 1.3 (0.8) 3.2 Preferred & Preferred Deemed Dividends (1.0) (0.2) (1.5) (0.
Slide 17: Fleet Data: First Quarter of 2019 and 2020
Fleet Data: First Quarter of 2019 and 2020 Second Quarter First Half (in million USD except per share amounts) 2019 2020 2019 2020 Number of vessels 11.0 19.0 11.0 19.0 Utililization Rate (1) Operational 100.0% 99.7% 100.0% 97.9% Commercial 96.7% 94.6% 98.0% 96.9% Overall 96.7% 94.4% 98.0% 94.8% (us
Slide 18: Debt Profile & Cash Flow Breakeven
Debt Profile & Cash Flow Breakeven Debt Repayment Profile Cash Flow Breakeven(1) $m a) $ 7.1m (2 vessels] Budget estimate for next 12 months: b) $ 7.1m (3 vessels) $/vessel/day 40.00 c) $18.5m (4 vessels) $16.1m (6 vessels) OPEX $5,900 35.00 G&A $540 30.00 $4.4m Interest $540 Drydock $320 25.00 Pref
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure Notes 140.0 Assets 120.0 Cash and Cash & Other assets: $10.0m Other Assets Net Book Vessels book value: $112.9m (includes held for sale Value assets) 100.0 Total assets (at book value): $122.9m Other Liabilities Pref. Equity Liabilities Ban
Slide 20: 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 Tasos Aslidis Nicolas Bornozis / Markella Kara Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, I