Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2011 Earnings Presentation
24 slides from Euroseas's earnings presentation, Nov 10, 2011
Slide 1: Three & Nine Months Ended September 30, 2011 Earnings Presentation
Confidential Three & Nine Months Ended September 30, 2011 Earnings Presentation November 10, 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: 2011 Third Quarter & First Nine Months Overview
2011 Third Quarter & First Nine Months Overview • Financial Highlights - 2011: Third Quarter First Nine Months Net Revenues $16.2 m $46.0 m Net Income / (Loss) $0.6 m $0.02 / $0.01 m $0.00 / share(2) share(2) Adj. Net Income(1) $1.7m $0.06 / $0.4 m $0.01 / share(2) share(2) Adj. EBITDA(1) $6.7m $15.
Slide 4: Dividend Declaration
Dividend Declaration $0,5 25% • Declared the 25th consecutive dividend of $0.07 per share for the third quarter of 2011 $0,4 20% • Total dividends for the results on the quarterly dividend annualized yield first nine months of 2011: $0,3 15% $0.21/share • Annualized yield of about 8.8% $0,2 10% • In
Slide 5: Other Company Developments
Other Company Developments • One more ship drydocked in 2011Q3 for a total of five year-to-date • No drydockings for the next three quarters planned • Two drydockings currently expected for the second half of 2012 • Extended drybulk charter coverage • Our dry bulk vessel, Monica P was withdrawn from
Slide 6: 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 7: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,600 2,778 2004 EM CORFU* Intermediate 34,654 2,556 2001 EM CHIOS Intermediate 32,350 2,506 2000 EM ATHENS Intermediate 32,350 2,506 2000 EM ANDROS Intermediate 33,216 2,450 2003
Slide 8: Market Overview
Market Overview
Slide 9: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2008 2009 2010 2011f 2012f 2013-16f USA 1.1 (1.8) -2.6 (-1.6) 2.8 (2.7) 1.5 (2.8) 1.8 (2.7) 2.7 Eurozone 0.8 (1.8) -4.1 (-2.0) 1.8 (1.0) 1.6 (1.6) 1.1 (1.8) 1.8 Japan -0.7 (1.4) -6.3 (-2.6) 4.3 (1.7) -0.5 (1.4) 2.3 (2.1) 1.4 China 9 (10.1) 9
Slide 10: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) For delivery in 2011/12/13+ (as of Oct- m dwt 45.7% About 10% of fleet 11): Is over 25 yrs old m dw t 200 m dw t (scrapping is at record 25.2% Cape 134/256/128 140 140 levels) Panamax 178/437/228 130 180 13
Slide 11: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU m teu m teu 7,2 45.3 % 2.2 2.2 6,8 6,4 2.0 11.7%--start of 2.0 6,0 5,6 1.8 year forecast 1.8 2,68 5,2 1.6 9.8% 9.2% 1.6 4,8 9.4% 4,4 1.4 1.4 4,0 25.6% 3,6 1,17 1.2 5.6% 1.2 0,80 3,2 1.0
Slide 12: Summary of Market Trends – Higher Uncertainty For Both Sectors…
Summary of Market Trends – Higher Uncertainty For Both Sectors… » Drybulk– Q4 has historically been strong but supply pressures are expected to shape 2012 • Increased momentum particularly for the Cape segment during the end of Q3 and beginning of Q4 dragged all segments in what we expect to be a sh
Slide 13: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 14: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100+ % in 2011 / 87% in 2012 / 42% in 2013 MONICA P Spot Pool/115%FFA -$16500-$23500 $12,375 PANTELIS $17,500 $11,200+50/50profit share til 2/2014+1 year Opt. @14,200 ARISTIDES NP $ 14,950 ELENI P $ 16,500 IRINI $14,000 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12
Slide 15: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (10/20/11): 91% in 2011Q4 / 21.5% in 2012 / 3.9% in 2013 MARINOS $3,750 $5,900 DD $5,900 Container Ship Vessels Optional periods CAPTAIN COSTAS $4,250 $10,250 Multi-purpose Vessel JONATHAN P DD $7,500 $9,000 $11,250 $6,700 MANOLIS P $4,000 $7,699 $1
Slide 16: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 » Operational fleet utilization rate in excess of 98.5% over last 5 years 8,000 $ / day • Outstanding safety and environmental record 6,000 • For 2011Q3, operational fleet utilization 99.7% 4,000 and commercial 100.0% 2,000
Slide 17: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year TC Rates 10-yr old Price Historical Range 90,000 90 80,000 80 Max, 2000-2010 Panam ax 75,000 dw t Containership 1700 teu Average, 2000-2010 70,000 70 Min, 2000-2010 60,000 60 Current, October-2011 million USD 50,000 50 $ / day 40,000 40 30,000 30 20,
Slide 18: Financial Overview
Financial Overview
Slide 19: Financial Highlights: 3rd Quarter and First Nine Months of 2010 and 2011
Financial Highlights: 3rd Quarter and First Nine Months of 2010 and 2011 Third Quarter First Nine Months (in million USD except per change change share amounts) 2010 2011 % (4) 2010 2011 % (4) Net Revenues $12.2 $16.2 32.7% $39.7 $46.0 16.0% Net Income ($3.2) $0.6 ($5.7) $0.0 (Gain) / loss on deriva
Slide 20: Fleet Data for 3rd Quarter and First Nine Months of 2010 and 2011
Fleet Data for 3rd Quarter and First Nine Months of 2010 and 2011 Fleet Statistics Third Quarter First Nine Months 2010 2011 2010 2011 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.00 16.17 16.00 Utilization Rate (%) Overall(1 ) 99.0% 99.7% 99.4% 98.6% Commercial(1 ) 100
Slide 21: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 11/09/2011 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day million $15 3.7 9.9 OPEX $ 5,600 25.6 2.4 1.0 2.2 9.6 G&A $ 650 $10 Interest $ 650 7.3 13.8 11.6 12.5 11.2 11.0 6.4 Drydock $ 200 $5 6.7
Slide 22: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ September 30, 2011: $ 36.0m • $29.5 m unrestricted – abt $6.5m working capital and restricted » Debt: $78.4 m as of September 30, 2011 • Debt to Capitalization ratio 27% • Covenants fully satisfied » About $30 m cash equity to fund further growth • $10m committed
Slide 23: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. 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 Canterbury Lane 230 Pa
Slide 24: Appendix
Appendix Please refer to the Company’s press release of November 09, 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 24