Euroseas Ltd. · NASDAQ:ESEA
Euroseas — H1 2009 Earnings Presentation
23 slides from Euroseas's earnings presentation, Aug 12, 2009
Slide 1: Three & Six Months Ended June 30, 2009 Earnings Presentation
Three & Six Months Ended June 30, 2009 Earnings Presentation A Augustt 12, 12 2009
Slide 2: Forward-Looking Statements
Forward-Looking g Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward forward-looking looking statements are based on current management expectations that involve risks and uncerta
Slide 3: 2009 Second Quarter & First Half Overview
2009 Second Quarter & First Half Overview • Financial Highlights - 2009: Second Quarter First Half Net Revenues $14.8 m $30.2 m Net Income / (Loss) ($5.4) m ($0.18) / ($1.5) m ($0.05) / share(2) share(2) Adj Net Income(1) Adj. $0 5 m $0.5 $0.02 $0 02 / $2 4 m $2.4 $0.08 $0 08 / share(2) share(2) Adj
Slide 4: Implementing Euroseas Strategy
Implementing p g Euroseas Strategy gy • Selectively acquire & sell vessels • At depressed market it is the time to buy younger ships • Bought three vessels year-to-date; more to come • Consistent long-term evaluation framework of each investment / project • Shows containerships potentially becoming
Slide 5: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 16th consecutive dividend of $0.4 20% $0.10 per share for the second quarter • Annualized yield of about 7.9% 7 9% ((1)) uarterly dividend annualized yield • One of the very few companies still paying $0.3 15% dividend • Intention to maintain policy of pr
Slide 6: Fleet Renewal & Expansion Program
Fleet Renewal & Expansion p Program g » Bought: • “Monica P”, 46,667 dwt bulker, Japan ’98-blt for $18.0m • “Eleni P”, 72,118 dwt bulker, Japan ‘97-blt for $18.4m • “Pantelis”, 74,020 dwt bulker, Japan ’00-blt for $27.5m » Sold: • “Nikolaos P”, 34,000 dwt bulker, Spain ’84-blt for $2.4 m • “Ioanna I
Slide 7: Vessels Employment Chart - Bulkers
Vessels Employment p y Chart - Bulkers 100% coverage in 2009 H2 / 75% in 2010 NIKOLAOS P. Spot Sold PANTELIS P $25,200 ELENI P $15 350 $15,350 Spot Spot GREGOS / 150% FFA @ 7,000 / 80% FFA @ 7,450 MONICA P. Spot pool / 100% FFA @ 10,250 Spot / 100% FFA @ 10,950 IRINI Spot pool / 100% FFA @ 10,250 Sp
Slide 8: Vessels Employment Chart - Containerships
Vessels Employment p y Chart - Containerships p 57% coverage in 2009 H2 / 22% coverage in 2010 ARTEMIS laid-up Container Ship Vessels DESPINA P 15k laid-up Multi-purpose Vessel JONATHAN P $16,500 laid-up YM XINGANG I $26,650 $3,850 MANOLIS P $15,800 OEL TRANSWORLD $18,500 KUO HSIUNG 11k 6k $4,100 $3
Slide 9: Current Fleet
Current Fleet Name Type DWT TEU Built Pantelis Panamax 74,020 - 2000 Eleni P Panamax 72 119 72,119 - 1988 Irini Panamax 69,734 - 1993 Aristides NP Panamax 69,268 - 1997 Monica P Handymax 46,667 - 1998 Gregos Handysize 38,691 - 1984 Maersk Noumea Intermediate 34,677 2,556 2001 Tiger Bridge Intermedia
Slide 10: Market Overview
Market Overview
Slide 11: Panamax & 1700 teu Containership 10-yr Old Prices & 1-yr TC Rates
Panamax & 1700 teu Containership p 10-yr y Old Prices & 1-yr y TC Rates 1-Year TC Rates Secondhand Price, 10-Year Old Vessels 90,000 90 Panamax 72-75,000 dwt Panam ax 72-75,000 dw t 80,000 80 Containership 1700 teu Containership 1700 teu 70,000 70 60,000 60 miillion USD 50,000 50 $ / day 40 000 40,0
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a.) 2006 2007 2008 2009F 2010F 2011-13F USA 33 3.3 25 2.5 11 1.1 -2 7 (-2.6) -2.7 (-2 6) 0 8 (1 0.8 (1.4) 4) 3.4 3 4 (1.8) (1 8) Eurozone 3.0 2.7 0.8 -4.8 (-3.4) 0.3 (0.2) 1.7 (1.8) Japan 2.8 1.9 -0.7 -6.0 (-6.5) 1.7 (0.3) 2.7 (1.2) China 10.5 11.2 9.
Slide 13: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk y Age g Profile & Orderbook Deliveryy Schedule Panamax Dry Bulk Dry AgeBulker Profile(1) Dry Bulk Orderbook (1) m dwt m dwt 30% 120 140.00 140 22 8% 22.8% 130.0 110 120.0 100 110.0 90 100.0 50.0 13.5% 80 57.60 17.8% 90 0 90.0 16 9% 16.9% 70 13.2% 80.0 70.0 12.5% 12.4% 60 38.70 60.0 37.4 23.4
Slide 14: Containership Age Profile & Orderbook Delivery Schedule
Containership p Age g Profile & Orderbook Deliveryy Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.4 m TEU 6.0 48.1 % 2.0 13.5% 5.6 16.0% 5.2 9.8% 4.8 1.6 4.4 3.02 10.8% 133 .8% 8% 0 79 0.79 4.0 3.6 1.2 1.31 3.2 0.6 0.7 2.8 21.5% 1.466 2.4 1.63 15.8% 0.8 0.44 2.0 1.21 00.45 45
Slide 15: Market Trends & Opportunities - Bulkers
Market Trends & Opportunities pp - Bulkers » Unexpected strength in 1H09 due to record imports of steel related goods by China and port congestion • iron ore imports – up 32% in July 09 over July 08 » Strong demand by China expected to continue in 2009 and 2010 » If global economic recovery happens
Slide 16: Market Trends & Opportunities - Containerships
Market Trends & Opportunities pp - Containerships p » Freight g rates,, charter rates and vessel pprices at all time lows as demand down 10-15% on 1H09. » Container lines expected collectively to loose $20 billion in 2009. » Percentage of fleet in lay up peaked end March at around 12% • Has fallen b
Slide 17: Financial Overview
Financial Overview
Slide 18: Financial Highlights: 2nd Quarter and 1st Half of 2008 and 2009
Financial Highlights: g g 2nd Quarter and 1st Half of 2008 and 2009 Second Quarter First Half as as (5) (5) (in million USD except per j adjusted change g j adjusted change g (4) share amounts) 2008 2009 % (4) 2008 2009 % Net Revenues $34.5 $14.8 -56.9% $67.3 $30.2 -55.2% Net Income $15.6 ($5.4) $29
Slide 19: Fleet Data for 2nd Quarter and 1st Half of 2008 and 2009
Fleet Data for 2nd Quarter and 1st Half of 2008 and 2009 Fleet Statistics Second Quarter First Half 2008 2009 2008 2009 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.44 16.00 11.46 15.62 Utilization Rate (%) Overall(1 ) 98.8% 96.9% 99.1% 94.6% Commercial(1 ) 100.0% 97.6% 99.7%
Slide 20: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule(1) – As of 8/11/2009 Cash Flow Breakeven $30 » $12.3 m less debt repayments in 2009 • $2,000 / day / vessel lower cash $25 $12.3m lower debt flow breakeven payments in 2009 $20 » Cash Flow Breakeven(2) rough estimate for next 12 months: million $15 $25.6
Slide 21: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ June 30, 2009: $ 56.2m • Also restricted cash of about $12.2m » D bt $69.5 Debt: $69 5 m as off June J 30, 30 2009 • Debt to Capitalization ratio about 22% • Agreed debt of 13m to finance purchase of Pantelis bought for about $27.5m – Proforma: $41 $41.8m 8m unres
Slide 22: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 40, Ag. Konstantinou 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 Canterbu
Slide 23: Appendix
Appendix pp Please refer to the Company Company’ss press release of August 11 11, 2009 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 23