Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2015 Earnings Presentation
28 slides from Euroseas's earnings presentation, Aug 12, 2015
Slide 1: Earnings Presentation: Three- and Six-Month Period Ended June 30, 2015
Earnings Presentation Three- And Six-Month Period Ended June 30, 2015 August 12, 2015
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: 2015 Second Quarter & First Half Overview
2015 Second Quarter & First Half Overview • Financial Highlights - 2015: Second Quarter First Half Net Revenues $9.4 m $17.6 m Net Loss ($3.3) m ($8.7) m Adj. Net Loss Available to ($3.7) m ($0.64)/ ($9.5) m ($1.64) Common Shareholders(1) share(2) /share(2) Adj. EBITDA(1) ($0.1) m ($1.9) m (1) See p
Slide 4: Funding of Fleet Expansion and Renewal
Funding of Fleet Expansion and Renewal Drybulk vessel newbuilding program 2 Ultramaxes (63,000 dwt) and 2 Kamsarmxes (82,000 dwt) Delivery of the first three vessels – two Ultramax and one Kamsarmax- is expected in Q1 2016 Delivery of second Kamsarmax is expected in Q4 2016 First Kamsarmax c
Slide 5: Operational Highlights
Operational Highlights Containerships Joanna : Extended for 1-3 months at $10,450 opt 3 months at $13,000 Marinos : Fixed for 3 months at $11,200 Ninos : Extended for 12 months at $11,500. Evridiki G: Charterers declared option for 6-month charter extension @ $13,500/day from 15-Sep-15 B
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Age Name Type DWT TEU Built Newbuilding Program Hull No YZJ Kamsarmax 82,000 2016 0.0 Hull No YZJ Kamsarmax 82,000 2016 0.0 Hull No DY160 Ultramax 63,500 2016 0.0 Hull No DY161 Ultramax 63,500 2016 0.0 Sub Total - NBs 4 vessels 291,000 0.0 Vess
Slide 7: Euromar Joint Venture
Euromar Joint Venture Name Type DWT TEU Built Original capital commitment has AKINADA BRIDGE Post Panamax 71,366 5,600 2001 been contributed, and Euroseas CAP EGMONT Intermediate 41,850 3,091 2007 currently holds approx: ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,6
Slide 8: Market Overview
Market Overview
Slide 9: Market Highlights – Second Quarter 2015 and August 2015
Market Highlights – Second Quarter 2015 and August 2015 Bulkers: “Signs of Life” BDI doubled to 1,197 (as of August 10th 2015) Panamax Spot rates averaged $4,847 in March and have been rising gradually to $8,178 (August 10th 2015) Supramax Spot rates averaged $6,019 in March and have also been ri
Slide 10: Drybulk Global Fleet Age Profile & Orderbook Delivery Schedule
Drybulk Global Fleet Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m dwt 52% 400 For delivery in remainder 15 380 /16/17+ as of Jun-15): 160 360 m dwt Cape 110/147/31 340 Panamax 173/139/46 320 140 300 162.1 H/S/Umax 307/291/90 280 120 Handies 184/164/68 260 11.1%
Slide 11: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU For delivery in 7.6 7.2 37 % 15/16/17+(as of Jun-15 6.8 34.3% Ppmx 86/79/65 m teu 6.4 2.2 Pmx 3000+ 4/4/7 6.0 2.0 10.4% 2-3000 31/35/10 5.6 5.2 1.9 1.8 1-2000 23/42/9 4.8 1.6 6.3% 100-999 2/1/
Slide 12: World Economic Growth
World Economic Growth US is the growth engine with volatility, Europe risks deflation and uncertainties globally remain Drivers of Growth: Oil at 6 years low Iran nuclear deal supports stability Strong USD could delay rate increases and cause them to be very gradual. Quantitative easing in th
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 USA 2.8 1.9 2.4 2.5(3.1) 3.0 (3.1) 2.7 Eurozone -0.7 .-0.5 0.9 1.5(1.5) 1.7 (1.6) 1.6 Japan 1.4 1.5 -0.1 0.8 (1.0) 1.2 (1.2) 0.4 China 7.7 7.7 7.4 6.8 (6.8) 6.3 (6.3) 6.0 India 3.2 4.4 7.2 7.5 (7.5) 7.5 (7.5) 7.
Slide 14: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2015/16 appear challenging… …But the lack of orders is positive for 2017 Any possible upside in the market in 2015/16 currently relies on “restocking” or excess scrapping China remains the main source of drybulk trade growth alt
Slide 15: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand prospects to improve in 2H 2015 and 2016 by 4-6%. Weakening Euro does not help European imports but USD strength is expected to boost US imports. With no new incremental deliveries for 2015 & 2016, we expect a supply/demand ba
Slide 16: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 17: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Contract Coverage(1): 68% in 2015 and 23% in 2016 (basis earliest redelivery) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 MONICA P $5,500 $10,100 $9500 $3,700` $9,50
Slide 18: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Contract Coverage(1): Abt 52 % in 2015 & 7% in 2016 (based on min duration unless t/c rate is below current market rate) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3
Slide 19: Well-positioned to Benefit from Market Recovery
Well-positioned to Benefit from Market Recovery Drybulk Segment - Contracted vs Spot Days(1) Containership Segment - Contracted vs Spot Days (1) 3000 4000 3500 2500 3000 2000 2500 days days 1500 2267 2000 3412 1500 1000 954 1000 500 802 500 789 339 191 0 99 0 2015-H2 2016 2015-H2 2016 Contracted Day
Slide 20: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) Operational fleet utilization rate in excess of 99.4% 10,000 over last 5 years. 9,000 8,000 Outstanding safety and environmental record. 7,000 6,000 $ / day For 2015Q2, operational fleet utilization 99.9% 5,000 and comm
Slide 21: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10 - yr o ld V e s s e l P ric e H is t o ric a l $/day R a nge 90,000 $m 90 Panamax 75,000 dwt 80,000 80 M ax Pr ice, 2 0 0 0 - 2 0 14 Containership 1700 teu 70,000 Avg Panamax Rate A ver ag e Pr ice, 2 0 0 0 - 70 Avg 1700teu 2 0 1
Slide 22: Financial Overview
Financial Overview
Slide 23: Financial Highlights: 2nd Quarter and 1st Half of 2014 and 2015
Financial Highlights: 2nd Quarter and 1st Half of 2014 and 2015 Second Quarter First Half (in million USD except per change change share amounts) 2014 2015 % 2014 2015 % Net Revenues $9.6 $9.4 -2.8% $19.1 $17.6 -8.3% Net Loss ($5.0) ($3.3) ($7.2) ($8.7) Preferred Dividends ($0.4) ($0.4) ($0.7) ($0.8
Slide 24: Fleet Data for 2nd Quarter and 1st Half of 2014 and 2015
Fleet Data for 2nd Quarter and 1st Half of 2014 and 2015 Fleet Statistics Second Quarter First Half 2014 2015 2014 2015 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 14.40 15.00 14.20 15.00 Utilization Rate (%) Overall(1 ) 99.2% 98.3% 99.5% 96.4% Commercial(1 ) 99.5% 98.4% 99.7%
Slide 25: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $30 Three Balloons of $10.7m due in 2015. Already refinanced a $5m balloon , currently in loan documentation to refinance another $3.4m and expect to refinance the last one by Q4 . » Cash Flow Breakeven - budget $25 estimate for next
Slide 26: Balance Sheet & Other Data
Balance Sheet & Other Data Total Cash(1) : $ 21.2 million $15.7m unrestricted – and about $5.5m of restricted funds and retention accounts Total Debt(1) : $49.8 million Debt to Capitalization ratio about 29%. Debt to Market Value of Fleet ratio about 54% Net debt to Market Value of Fleet
Slide 27: Shareholders' Rights Offering - $20m
Shareholders’ Rights Offering - $20m Targeting $10m-$20m Filed amended registration statement on form F-1 yesterday Existing shareholders of record as of August 14, 2015 will be given the right to buy shares in the offering Subject to the registration statement being declared effective by th
Slide 28: 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