Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2018 Earnings Presentation
32 slides from Euroseas's earnings presentation, May 8, 2018
Slide 1: Earnings Presentation Quarter Ended March 31st, 2018
Earnings Presentation Quarter Ended March 31st, 2018 May 8th, 2018
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: 2018 First Quarter In Review
2018 First Quarter In Review
Slide 4: Key 2018 Developments To-Date
Key 2018 Developments To-Date Completed our newbuilding program that we started in 2014 M/V Ekaterini, a 82,000 dwt drybulker, was delivered on May 7, 2018 Final payment to the yard of $15.75 was fully covered by debt financing A $18.4m facility has been provided by an international bank T
Slide 5: Other Operational Highlights
Other Operational Highlights Vessel S&P Monica P: Signed MoA to be sold for $6.45m; to be delivered by end-June 2018 Repairs/DD M/V Monica P, M/V Pantelis & M/V Tasos all underwent drydock repairs for a total consideration of $2.2million during the quarter and 73 days off-hire Idle Time
Slide 6: Pillar of Success: Fleet Management & Operational Performance
Pillar of Success: 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 2018Q1, operational fleet utilization 99.7% and $ / day 5,000 comm
Slide 7: Financial Overview
Financial Overview
Slide 8: Financial Highlights: 1st Quarter of 2017 and 2018
Financial Highlights: 1st Quarter of 2017 and 2018 First Quarter change (in million USD except per share amounts) 2017 2018 % Net Revenues $8.3 $12.9 56% Net (Loss)/Income ($2.2) ($3.2) Preferred Dividends ($0.4) ($0.5) Net (Loss)/Income available to Common Shareholders ($2.6) ($3.6) Unrealized Gain
Slide 9: Fleet Data for 1st Quarter of 2017 and 2018
Fleet Data for 1st Quarter of 2017 and 2018 First Quarter Fleet Statistics 2017 2018 (unaudited) (unaudited) Number of vessels 13.4 17.0 Utilization Rate (%) (1) Operational 98.3% 99.7% Commercial(1) 92.5% 98.4% Overall(1) 90.8% 98.1% Averages in usd/day/vessel Time Charter Equivalent (TCE)(2) $ 7,2
Slide 10: Charting A New Course
Charting A New Course
Slide 11: A Strategic Evolution
A Strategic Evolution BULKERS (EURODRY LTD) CONTAINERSHIPS A traditional Greek shipping company (EUROSEAS LTD) that has adapted its strategy to the NEW EQUITY / FLEET RENEWAL changing times and opportunities… 2018: Planned separation of fleets PRIVATE 2014 EQUITY PUBLIC 2010 MARKETS CONTAINER- 2005-
Slide 12: Spin-off of our Drybulk Fleet
12 Spin-off of our Drybulk Fleet We are spinning-off our six vessel drybulk fleet into a separate company The fleet includes: Three newbuildings (2 Kamsarmaxes, 1 Ultramax) built according to our specifications Three high quality Japanese-built Panamaxes all post-2000 built Average fleet a
Slide 13: Reasons for the Spin-Off
13 Reasons for the Spin-Off Our objective is to maximize shareholder value Currently, Euroseas stock trades around 40% of NAV while most public peers - which are all “pure-play” companies - trade close to their NAV Our the mixed fleet strategy is likely one of the reasons for the trading disco
Slide 14: Fleets After Spin-Off
Fleets After Spin-Off DRYBULK CARRIERS CONTAINERSHIPS Size Year Size Year Name Type DWT Built Name Type DWT TEU Built Akinada Bridge Intermediate 71,366 5,610 2001 Ekaterini Kamsarmax 82,000 2018 EM Astoria Feeder 35,600 2,788 2004 Xenia Kamsarmax 82,000 2016 EM Corfu Feeder 34,654 2,556 2001 Alexan
Slide 15: Our Drybulk Fleet
Our Drybulk Fleet
Slide 16: Drybulk Market Highlights
Drybulk Market Highlights The BDI was at 1230 points on Jan-2 and ended up at 1055 on Mar-29; averaged 1175 points during Q1 2018 with a peak of 1395 on Jan-9 and a bottom of 1055 points on Mar-29. Currently it stands at 1,384 points (May-4, 2018) As of March 1 2018 the BDI composition is revise
Slide 17: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook 7% of the fleet is over m dwt 20 yrs old m160 For delivery in 18/19/20+ 400 as of Mar-18): 380 44% 360 140 Cape 47/63/70 340 Panamax 73/84/47 320 300 120 H/S/Umax 82/60/40 280 29% 158.4 14.2% Handies 88/45/22 2
Slide 18: 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 grow
Slide 19: Outlook Summary – Bulkers
Outlook Summary – Bulkers Market in 2017 was characterized by robust demand and a depleting orderbook 1-Yr TC Earnings averaged 70% higher than 2016 still well below historical average levels For 2018 and 2019, we expect further improvements in the demand/supply balance Barring any significa
Slide 20: Employment Chart – Bulkers
Employment Chart – Bulkers Coverage: As of May, 2018 : 57% in 2018 & 33% in 2019 basis min durations 2017 2018 2019 Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $10.6K MONICA P $14,000 $8,400 $6,500 $10,000 $8.000 PANTELIS
Slide 21: Drybulk Vessel Debt Repayment Profile & Cash Flow Breakeven
Drybulk Vessel Debt Repayment Profile & Cash Flow Breakeven Drybulk Fleet Debt Repayment Schedule Cash Flow Breakeven $20 Cash Flow Breakeven - budget estimate for next 12 months: $15 $18.6m $/vessel/day million $10 OPEX $ 5,000 $8.0m $8.8m $2.8m G&A $ 1,000 Interest $ 1,400 $5 Drydock $ 100 Loan
Slide 22: Market Snapshot – Panamax Investment Opportunities
Market Snapshot – Panamax Investment Opportunities Panamax 1-Year Time Charter Rate Panamax 10-Year Historical Price Range $/day 90,000 $m 90 80,000 Panamax 75,000 dwt 80 70,000 70 Avg Panamax Rate 60 60,000 50 50,000 40 40,000 30 ? 20 30,000 10 20,000 0 Panamax 10,000 Max Price, 2000-2017 Average P
Slide 23: Our Feeder Containership Fleet
Our Feeder Containership Fleet
Slide 24: Containership Market Highlights
Containership Market Highlights Time charter rates in Q1 for feeder and intermediate size vessels ranging from 1,000-5,000 teus have all risen abt 15%-20% on average The 1,700 teu geared vessel rose from an average of $8,300 in Q4 to $9,683 in Q1 and currently stand at $10,500 The 2,500 teu ge
Slide 25: 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 grow
Slide 26: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook For delivery in 18/19/20+ (as of Mar-18) 5% of the m TEU 8000+ 50/44/48 32 % m TEU 7.2 31% fleet is over 2,2 20 years old 3-7,999 21/1/0 6.8 6.4 2,0 8.5% 100-2,299 98/92/27 6.0 8% 1,8 5.6 23% Note:
Slide 27: Outlook Summary – Containerships
Outlook Summary – Containerships We expect the supply/demand balance to be positive in 2018 which would enable rates to rise closer or above in some cases to their historical numbers The fundamentals for the sub 5,000 teu vessels look even better as fleet growth is expected to be marginal while
Slide 28: Employment Chart – Containerships
Employment Chart – Containerships Coverage: As of May, 2018 : 78% in 2018 2017 2018 2019 Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EM ASTORIA $5,700 $8,000 AKINADA BRIDGE $11,250 $4,050 $16.500 AEGEAN EXPRESS $8,250 $10,
Slide 29: Container Fleet Debt Repayment Profile
Container Fleet Debt Repayment Profile Containership Fleet Debt Repayment Schedule Cash Flow Breakeven $20 Cash Flow Breakeven - budget $15 estimate for next 12 months: $/vessel/day million $10 OPEX $ 5,550 $7.9m $9.4m G&A $ 550 Interest $ 550 Drydock $ 500 $5 $0.7m Loan Rpmt(*) $ 1,000 $0 TOTAL $
Slide 30: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1700 teu 1-Year Time Charter Rate 10-Year Historical Price Range $/day 35,000 $m 40 30,000 Containership 1700 teu 35 Avg 1700teu 30 25,000 25 20,000 20 15 15,000 ? 10 5 10,000 0 Cont 1700 teu 5,000 Max Price, 2000-2017 Average Price, 2000-2017 Min Price, 20
Slide 31: Looking Ahead: Opportunities & Challenges
Looking Ahead: Opportunities & Challenges Start of a new phase for our company Focused platforms with access to the capital markets Both shipping sectors at an attractive point in the cycle for expansion Orderbook to one of the lowest levels of the last 15 years minimal supply side pressur
Slide 32: 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