Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2017 Earnings Presentation
25 slides from Euroseas's earnings presentation, Nov 10, 2017
Slide 1: Earnings Presentation Quarter Ended September 30, 2017
Earnings Presentation Quarter Ended September 30, 2017 November 10, 2017
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: 2017 Third Quarter & Nine Months Overview
2017 Third Quarter & Nine Months Overview • Financial Highlights - 2017: Third Quarter Nine Months Net Revenues $11.1 m $29.4 m Net Loss ($4.8) m ($8.0) m Preferred Dividends ($0.5) m ($1.3) m Adj. Net Loss Available to ($0.7) m ($0.06)/ share(2) ($5.3) m ($0.48)/ share(2) Common Shareholders(1) Adj
Slide 4: Operational Highlights
Operational Highlights ➢ Vessel S&P ➢ In September 2017, Euromar became a wholly owned subsidiary as its majority shareholders, Eton Park and Rhone Group, sold their shares to Euroseas for a nominal consideration. The nine vessels owned by Euromar were controlled by its lenders as the debt of the ve
Slide 5: Current Fleet
Current Fleet Size Year Name Type DWT TEU Built Newbuilding Program Hull No YZJ 117 Kamsarmax 82,000 2018 Sub Total - NBs 1 vessel 82,000 Vessels in the water Xenia P Kamsarmax 82,000 2016 Alexandros P Ultramax 63,500 - 2017 Eirini P Panamax 76,466 - 2004 Tasos Panamax 75,100 - 2000 Pantelis Panamax
Slide 6: Chartering Highlights
Chartering Highlights Since our Q2 earnings call: ➢ Bulkers ➢ Monica P: fixed for for 20-25 days @ $10,600/day, and fixed thereafter for about 65 days @13,750/day ➢ Tasos : fixed for a voyage for about $8,500/day ➢ Pantelis: fixed for about 25 days @ $9,500/day, then fixed for a trip about 80-90d @
Slide 7: Market Overview
Market Overview
Slide 8: Market Highlights
Market Highlights Bulkers: ➢ The BDI was at 901 points on Jun-30 and averaged 1,137 points during Q3 2017 after bottoming at 820 points on Jul-10 and ending up at 1,356 points on Sep-29. Currently it stands at 1,489 points (Nov-08, 2017) ➢ Daily Cape spot rates averaged $15,163/day in Q3, Panamax sp
Slide 9: Market Highlights
Market Highlights Containerships: ➢ Time charter rates in Q3 for feeder and intermediate size vessels ranging from 1,000-5,000 teus have all averaged about the same as in Q2 ➢ The 1,700 teus geared vessel rose from an average of $6,950in Q2 to $7,317 in Q3 ➢ The 2,500 teus geared vessel fell from an
Slide 10: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m 160 m dwt For delivery in 17/18/19+ 400 as of Sep-17): 380 7% of the fleet is 140 360 41% over 20 yrs old Cape 29/50/50 340 Panamax 41/56/59 320 120 H/S/Umax 83/58/29 300 32% Handies 70/75/28 280 150.0 100 14
Slide 11: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m TEU For delivery in 6.8 32 % 32% 2.2 17/18/19(as of Sep-17) 6.4 6.0 2.0 7500+ 34/78/22 8.5% 3-7,499 8/22/0 5.6 1.8 8.3% 5.2 7.4% 100-2,299 58/105/42 4.8 22% 1.6 4.4 1.4 1.66 4.0 1.18 Overage
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth ➢ Synchronized world economic recovery for the first time since 2010 with US growth continuing strong (3%) in Q3 despite hurricanes. Strengthening growth in the Eurozone, strong growth in China and solid growth in most parts of the world are to result in healthy gr
Slide 13: Outlook Summary – Bulkers
Outlook Summary – Bulkers ➢ Market in 2017 was characterized by robust demand and a depleting orderbook. The year will average significantly higher than 2016. ➢ For 2018, we expect further improvements in the demand/supply balance and barring any significant slow-down in Chinese iron ore and coal im
Slide 14: Outlook Summary – Containerships
Outlook Summary – Containerships ➢ Demand growth in 2017 will come in in excess of 5% against our original estimate of 3%. This has led to a rapid depletion of the idle fleet and a robust market recovery ➢ We expect the supply/demand balance to be almost flat in 2018. Despite the large orderbook of
Slide 15: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 16: Employment Chart – Bulkers
Employment Chart – Bulkers Coverage: abt. 81% in 2017Q4 and 22% in 2018 (includes ships on index charters) 2017 2018 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EIRINI P 104% of BPI4TC 104% of BPI4TC $10.6K MONICA P $7,500
Slide 17: Employment Chart – Containerships
Employment Chart – Containerships Coverage: about 95% in 2017Q4 and about 21% in 2018. 2017 2018 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EM ASTORIA $5,700 $8,000 EVRIDIKI G $11,000 $11,000 EM CORFU $11,000 EM ATHENS $8
Slide 18: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 ➢ Fleet utilization rate in excess of 99.4% over last 5 9,000 years 8,000 ➢ Outstanding safety and environmental record 7,000 6,000 ➢ For 2017Q3, operational fleet utilization 99.9% and $ / day 5,000 commercial 100.0%
Slide 19: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day $m 90,000 90 80,000 Panamax 75,000 dwt 80 Max Price, 2000-2016 Containership 1700 teu 70,000 Avg Panamax Rate 70 Average Price, 2000-2016 Avg 1700teu 60,000 60 Min Price, 2000-2016 50,000 50 Curr
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 3rd Quarter and Nine Months of 2016 and 2017
Financial Highlights: 2nd Quarter and 1st Half of 2016 and 2017 Third Quarter Nine Months (in million USD except per share change change amounts) 2016 2017 % 2016 2017 % Net Revenues $7.2 $11.1 54% $21.1 $29.4 39% Net Loss ($4.6) ($4.8) ($26.6) ($8.0) Preferred Dividends ($0.4) ($0.5) ($1.3) ($1.3)
Slide 22: Fleet Data for 3rd Quarter and Nine Months of 2016 and 2017
Fleet Data for 2nd Quarter and 1st Half of 2016 and 2017 Fleet Statistics Third Quarter Nine Months 2016 2017 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 11.02 14.02 11.33 13.51 Utilization Rate (%) Overall(1) 99.7% 99.9% 97.4% 98.1% Commercial(1) 99.7% 100.0% 97.6% 9
Slide 23: Vessel Debt Repayment Profile
Vessel Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $20 $16.4m » Cash Flow Breakeven - budget $15 estimate for next 12 months: $7.7m $/vessel/day million $10 $8.8m OPEX $ 5,150 $4.0m G&A $ 650 $5 Interest $ 750 $3.2m Drydock $ 400 $0 Loan Rpmt(*) $ 1,350 2017 2018 2019 2020 202
Slide 24: Cash Flow & NAV Sensitivity to Market Changes
Cash Flow & NAV Sensitivity to Market Changes ➢ Euroseas is positioned to take advantage of a potential market recovery ➢ About 13% of the total available days in 2018 are contracted with fixed charter rates leaving significant capacity (days) available to benefit from a market upturn… ➢ …while a lo
Slide 25: 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