Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2015 Earnings Presentation
25 slides from Euroseas's earnings presentation, May 21, 2015
Slide 1: Earnings Presentation: Three Months Ended March 31, 2015
Earnings Presentation Three Months Ended March 31, 2015 May 21, 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 First Quarter Overview
2015 First Quarter Overview Financial Highlights First Quarter 2015: Net Revenues: $ 8.2 million Net Loss: $ (5.4) million Adj. Net Loss : (1) $ (5.2) million Adj. Net Loss to Common S’holders(2): $ (5.6) million, or, ($0.10)/share, basic & diluted Adj. EBITDA(1): $ (1.8) million Balance Sheet Highl
Slide 4: Operational Highlights
Operational Highlights Containerships Marinos : Fixed at $6,500 fm 16-Jan-15 for 28-180 days. Tiger Bridge : Fixed at $7,500 fm 26-mar-15 until 15-Oct to 5-Nov-15 Manolis P: Fixed at $7,300 fm 9-Apr-15 for 6 months Evridiki G: Fixed at $10,750 fm 16-Apr-15 till min 15-Aug-15 max 15-Sep-15
Slide 5: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Built / Year Name Type DWT TEU To be built Acquired Newbuilding Program Hull No YZJ1116 Kamsarmax 82,000 2015 2014 Hull No YZJ1153 Kamsarmax 82,000 2016 2014 Hull No DY160 Ultramax 63,500 2015 2013 Hull No DY161 Ultramax 63,500 2016 2013 Vessels in the w
Slide 6: 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: CAP EGMONT Intermediate 41,850 3,091 2007 Euroseas holds approx 14% of the company’s common equity ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM AST
Slide 7: Market Overview
Market Overview
Slide 8: Market Highlights – Fourth Quarter 2014 and Feb-2015
Market Highlights – Fourth Quarter 2014 and Feb-2015 Bulkers BDI dropped eventually from 771 points (1-Feb-2015) to 602 (31-Mar-2015) and currently stands at 608 (18-May-2015) Cape Spot rates started the year at $4,375 then rose to abt $8,000/day w/in January (25/1/2015) and ended the quarter at a
Slide 9: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m dwt 400 52% For delivery in 15/16/17+ 380 160 m dwt Beginning of as of Mar-15): 360 9% of the fleet is Year Cape 138/158/37 over 20 yrs old orderbook 340 140 Panamax 216/136/44 320 (yellow bar) 168.0 H/S/Umax
Slide 10: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook For delivery in 15/16/17(as of Mar-15 m TEU Ppmx 108/81/41 7.2 37 % 6.8 34.3% 2,2 m m teu Pmx 3000+ 5/4/9 6.4 2-3000 33/39/8 10.4% 6.0 2,0 1-2000 26/42/7 5.6 1,8 100-999 4/1/0 6.3% 5.2 1.81 4.8 1,6
Slide 11: World Economic Growth
World Economic Growth US remains the growth engine, Europe pursues quantitative easing to avoid deflation but uncertainties, globally, remain Positives: Lower oil prices should help consumption in oil importing economies. A strong US dollar could delay interest rate increases. Quantitative easing i
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 3.1(3.6) 3.1 (3.3) 2.7 Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 1.5(1.2) 1.6 (1.4) 1.6 Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 1.0 (0.6) 1.2 (0.8) 0.4 China 7.7 (8.2) 7.7 (7.6) 7.
Slide 13: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2015/16 appear challenging Any possible upside in the market in 2015/16 currently relies on demand recovery or excess scrapping China remains the main source of drybulk trade growth although its economy seems to be adjusting to a
Slide 14: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends Demand prospects are expected to improve in 2015 and 2016 by 6-7%, weakening Euro does not help European imports; on the contrary USD strength expected to boost. even more US imports With no new incremental deliveries expected for 2015 and 2016
Slide 15: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 16: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: Abt 43% in 2015 and 14% in 2016 basis min durations (includes ships on index charters and assumes Kmax1,Ultra1 delivered by 1/1/2016 ,Ultra2 by 4/1/2016 and Kmax2 by 1/1/2017) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Slide 17: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 44% in 2015 (based on min duration unless t/c rate is below 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 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 MARINOS $7,150 $7,150 Idle
Slide 18: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) Operational fleet utilization rate in excess of 98.5% 10,000 over last 5 years. 9,000 8,000 Outstanding safety and environmental record. 7,000 6,000 For 2015Q1, operational fleet utilization 99.9% $ / day 5,000 and commercia
Slide 19: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-yr old Price Historical Range $/day $m 90,000 90 80,000 80 Max, 2000-2014 Panamax 75,000 dwt Average, 2000-2014 70,000 Containership 1700 teu 70 Min, 2000-2014 60,000 60 Current, May-15 50,000 50 40,000 40 30,000 30 20,000 20 ? 1
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 1st Quarter of 2014 and 2015
Financial Highlights: 1st Quarter of 2014 and 2015 First Quarter (in million USD except per share change amounts) 2014 2015 % Net Revenues $9.50 $8.18 -13.9% Net Income / Loss -$2.21 -$5.40 Unrealized & Realized (gain) / loss, $0.04 $0.20 derevatives & investments (1) Adj. Net Loss -$2.17 -$5.20 Div
Slide 22: Fleet Data for 1st Quarter of 2014 and 2015
Fleet Data for 1st Quarter of 2014 and 2015 Fleet Statistics First 2014 2015 (unaudited) (unaudited) Number of vessels 14.00 15.00 Utilization Rate (%) Overall( 1 ) 99.8% 94.6% Commercial( 1 ) 100.0% 94.7% Operational( 1 ) 99.8% 99.9% Averages in usd/day/vessel Time Charter Equivalent (TCE)( 2 ) $ 7
Slide 23: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 05/21/2015 Cash Flow Breakeven Three Balloons of $10.7m due in 2015, already received offer $30 Balloon of letters from our lenders to re- » Cash Flow Breakeven - rough finance $8.4m of this amount. $25 refinanced $4.6m was , estimate for next 1
Slide 24: Balance Sheet & Other Data
Balance Sheet & Other Data Cash as of March 31, 2015: $ 23.8m $15.5m unrestricted – and about $8.3m of restricted funds and retention accounts. Debt: $52.3m as of March 31, 2015 Debt to Capitalization ratio about 36%. Debt to Market Value of Fleet ratio about 58% & Net debt to Market Value
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