Euroseas Ltd. · NASDAQ:ESEA

Euroseas — Q2 2014 Earnings Presentation

24 slides from Euroseas's earnings presentation, Aug 8, 2014

  1. Slide 1: Earnings Presentation: Three- and Six-Month Period Ended June 30, 2014

    Earnings Presentation Three- And Six-Month Period Ended June 30, 2014 Earnings Presentation August 08, 2014

  2. 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

  3. Slide 3: 2014 Second Quarter & First Half Overview

    2014 Second Quarter & First Half Overview • Financial Highlights - 2014: Second Quarter First Half Net Revenues $9.6 m $19.1 m Net Loss ($5.0) m ($7.2) m Adj. Net Loss Available to ($5.3) m ($0.09)/ ($7.8) m ($0.15) / Common Shareholders(1) share(2) share(2) Adj. EBITDA(1) ($1.6) m ($0.6) m (1) See

  4. Slide 4: Operational Highlights

    Operational Highlights  Operational Highlights: Employment extensions on up to 12-month charters  Containerships  Evridiki G: Extended for 12 months at $8,200/day.  Joanna: Extended for 1-3 months at $7,500/day. Also thereafter fixed lump-sum $400k with empties to far east.  Marinos: Extended f

  5. Slide 5: Current Fleet (not including Euromar vessels)

    Current Fleet (not including Euromar vessels) Built / Year Name Type DWT TEU To be built Acquired Newbuilding Program Hull No YZJ1116 Kamsarmax 82,000 2015 2014 Hull No YZJ1153 Kamsarmax 82,000 2016 2014 Hull No DY160 Ultramax 63,500 2015 2013 Hull No DY161 Ultramax 63,500 2016 2013 Vessels in the w

  6. Slide 6: Euromar Joint Venture

    Euromar Joint Venture  Original capital commitment has been contributed: Name Type DWT TEU Built AKINADA BRIDGE Post Panamax 71,366 5,600 2001  Total capital invested CAP EGMONT Intermediate 41,850 3,091 2007 $175m .. ALANCA SAN MARTIN Intermediate 37,180 2,785 2007  ..of which $25m are from EM A

  7. Slide 7: Market Overview

    Market Overview

  8. Slide 8: Market Highlights - 2014 Q2

    Market Highlights - 2014 Q2 Bulkers  The BDI dropped from 1362 to 894 points and currently stands at 732 points. Spot:  Capes dropped sharply from about $18,500/day down to Q2's low of $8,000/day within the first 2 weeks of April and then fluctuated to finish Q2 at abt $14,000/day and currently s

  9. Slide 9: Drybulk Age Profile & Orderbook Delivery Schedule

    Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m dwt 54% 300 160 Beginning of Year m dwt 280 For delivery in orderbook (yellow bar) 260 14/15/16+as of Jun-14): 140 240 Cape 70/123/152 220 Panamax 184/147/103 120 200 H/S/Umax 218/306/229 14.2% 11.1% 180 Hand

  10. Slide 10: Containership Age Profile & Orderbook Delivery Schedule

    Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU 36.8 % For delivery in 2.2 m teu 6.8 34.6% 14/15/16+(as of Jun-14 6.4 Ppmx 98/135/88 2.0 6.0 5.6 Pmx 3000+ 4/1/1 1.8 9.5% 5.2 1.75 2-3000 12/24/28 8.2% 1.6 4.8 1-2000 25/32/15 9.4% 4.4 1.4 5.6

  11. Slide 11: World Economic Growth

    World Economic Growth U.S. is the growth engine with volatility, Europe risks deflation and uncertainties globally remain. Positives:  Second half US growth could be above 3% (annualized). Pro-business government elected in India. European elections led to higher representation of Euro-sceptic part

  12. Slide 12: World GDP & Shipping Demand Growth

    World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2010 2011 2012 2013 2014 2015 USA 2.8 (2.7) 1.8 (3.0) 2.8(1.8) 1.9(1.2) 1.7(2.8) 3.0(3.0) Eurozone 1.8 (1.0) 1.5 (1.5) -0.7 (-0.5) .-0.5(-0.4) 1.1(1.2) 1.5(1.5) Japan 4.3 (1.7) -0.6 (1.7) 1.4(1.7) 1.5(2.0) 1.6(1.4) 1.1(1.0) China 10.3 (10.0)

  13. Slide 13: Outlook Summary

    Outlook Summary Bulker trends  New vessel deliveries have softened up in the Q2 2014 and are expected to continue softening in H2. Rates expected to improve from the extremely low current spot levels. Market analysis suggests a balanced demand and supply which will result in the average time charte

  14. Slide 14: Chartering, Operations & Investment Strategy

    Chartering, Operations & Investment Strategy

  15. Slide 15: Vessels Employment Chart – Bulkers

    Vessels Employment Chart – Bulkers Coverage: 2014: 84% in 2014 based on max durations (includes ships on index charters) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 ARISTIDES N.P. $7,500 $6,300 $4K MO

  16. Slide 16: Vessels Employment Chart – Containerships

    Vessels Employment Chart – Containerships Coverage: Abt 62% in 2014 and 17% in 2015 (based on min duration apart from Joanna) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 JOANNA $7,500 $7.500 $400k lum

  17. 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 2014Q2, operational fleet utilization 99.7% 5,000 4,000 and com

  18. 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 14 Panamax 75,000 dwt A ver ag e, 2 0 0 0 - 2 0 14 70,000 Containership 1700 teu 70 M in, 2 0 0 0 - 2 0 14 60,000 60 C ur r ent , A ug - 14 50,000 50

  19. Slide 19: Financial Overview

    Financial Overview

  20. Slide 20: Financial Highlights: 2nd Quarter and 1st Half of 2013 and 2014

    Financial Highlights: 2nd Quarter and 1st Half of 2013 and 2014 Second Quarter First Half (in million USD except per change change share amounts) 2013 2014 % 2013 2014 % Net Revenues $9.6 $9.6 0.7% $20.5 $19.1 -6.6% Net Loss ($8.9) ($5.0) ($13.5) ($7.2) Preferred Dividends $0.0 ($0.4) $0.0 ($0.7) Ne

  21. Slide 21: Fleet Data for 2nd Quarter and 1st Half of 2013 and 2014

    Fleet Data for 2nd Quarter and 1st Half of 2013 and 2014 Fleet Statistics Second Quarter First Half 2013 2014 2013 2014 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 14.96 14.40 14.98 14.20 Utilization Rate (%) Overall(1 ) 90.4% 99.2% 94.2% 99.5% Commercial(1 ) 90.6% 99.5% 95.0%

  22. Slide 22: Debt Repayment Profile

    Debt Repayment Profile Debt Repayment Schedule – As of 08/08/2014 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day million 3.2 $15 4.6 10.7 OPEX $ 5,750 4.7 $10 9.4 8.3 G&A $ 780 $5 10.1 8.8 6.6 4.7 4.7 Interest $ 550 5.7 $0 2.6 2.6 1.4 Drydock $ 520 2

  23. Slide 23: Balance Sheet & Other Data

    Balance Sheet & Other Data  Cash as of June 30, 2014: $ 46.4m  $38.4m unrestricted – and about $8.0m of restricted funds and retention accounts  Debt: $59.4m as of June 30, 2014  Debt to Capitalization ratio about 35%  Debt to Market Value of Fleet ratio about 55%  Net debt to Market Value of

  24. 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

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