Euroseas Ltd. · NASDAQ:ESEA
Euroseas — H1 2010 Earnings Presentation
24 slides from Euroseas's earnings presentation, Aug 11, 2010
Slide 1: Three & Six Months Ended June 30, 2010 Earnings Presentation
Three & Six Months Ended June 30, 2010 Earnings Presentation A Augustt 11, 11 2010
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: 2010 Second Quarter & First Half Overview
2010 Second Quarter & First Half Overview • Financial Highlights - 2010: Second Quarter First Half Net Revenues $13.7 m $27.5 m Net Income / (Loss) $0.5 m $0.02 / ($2.5) m ($0.08) / share(2) share(2) Adj. Net Income(1) $0.5 m $0.02 / $0.9 m $0.03 / share(2) share(2) Adj. EBITDA(1) $5.0 m $10.0 m Div
Slide 4: Recent Developments
Recent Developments p » Bought 1998-built geared 2008 teu containership, containership m/v Aggeliki P • Vessel bought by Euroseas » Reactivated and chartered containership, m/v Despina P 1990-built gearless 1932 teu • Vessel was laid up since April 2009 • We are actively seeking employment to re-act
Slide 5: Continue Executing the Euroseas Strategy
Continue Executing g the Euroseas Strategy gy • Selectively acquire & sell vessels • Each project evaluated on its own merits • Focus on younger vessels when prices are below historical averages • Focus on keeping operating costs low • One of the lowest cost structure amongst g ppublic companies p •
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet ((not includingg Euromar vessels)) Size Year Acquisition Name Type DWT TEU Built Year Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,119 - 1997 2009 Irini Panamax 69,734 - 1988 2002 Aristides NP Panamax 69,268 , - 1993 2006 Monica P Handymax 46,667 - 1998 2009 Maersk Noumea Int
Slide 7: Investment Opportunities
Investment Opportunities pp 1 Year TC Rates 1-Year 10 yr old Price Historical Range 10-yr 90,000 90 80,000 Panamax 72-75,000 dwt 80 M ax, 19 9 9 - 2 0 0 9 Containership 1700 teu A ver ag g e,, 19 9 9 - 2 0 0 9 70 000 70,000 70 M in, 19 9 9 - 2 0 0 9 60,000 60 C ur rent , A ug - 2 0 10 50,000 50 $ /
Slide 8: Fleet Management & Operational Performance
Fleet Management g & Operational p Performance Daily costs per vessel (1) » Operational fleet utilization rate in excess of 98.5% 10,000 over last 5 years 8,000 • Outstandingg safetyy and environmental record $ / dayy 6 000 6,000 • For 2010Q2, operational fleet utilization 99.3% 4,000 and commercial
Slide 9: Vessels Employment Chart – Bulkers
Vessels Employment p y Chart – Bulkers 100+% in 2010 / 60 % in 2011 / 10% in 2012 IRINI Spot Pool / 100% FFA-10,950 Spot Pool/100% FFA collar avg17,000 $17,500 MONICA P Spot Pool / 100% FFA-10,970 ELENI P. $15,350 $23,500 PANTELIS $25k $17,500 ARISTIDES N.P. $12.3k $18,900 Q1 '10 Q2 '10 Q3 '10 Q4 '1
Slide 10: Vessels Employment Chart – Containerships
Vessels Employment p y Chart – Containerships p Coverage abt 90% in 2010 / abt 42(1)% in 2011 Container Ship Vessels Multi-purpose p p Vessel JONATHAN P Laid-up DESPINA P Laid-up $7,500 KUO HSIUNG $3,850 $3,850 $5,300 CAPTAIN COSTAS $4000 $4,250 $4,250 TIGER BRIDGE $7,500 $4,000 $4,000 7500 til Marc
Slide 11: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 20th consecutive $0.4 20% dividend of $0.06 per share for the dend yield second quarter of 2010 quarterly divid $0 3 $0.3 15% annualized y • Annualized yield of about 6.8% (1) $0.2 10% • Intention to maintain policy of providing healthy dividends $0.1 5%
Slide 12: Market Overview
Market Overview
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2007 2008 2009 2010f 2011f 2012-14f USA 25 2.5 11 1.1 -2.4 24 3 3(2 1) 3,3(2,1) 2 9 (2 2,9 (2,6) 6) 24 2.4 Eurozone 2.7 0.8 -4.1 1,0 (1,0) 1,3 (1,5) 1.8 Japan 1.9 -0.7 -5.2 2,4 (1,9) 1,8 (2,0) 1.9 China 11.2 9.0 8.7 10.5(10.0) 9,6(9,9) 9.7 India 9
Slide 14: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk y Age g Profile & Orderbook Deliveryy Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 140 33 % 33.% 27 3% 27.3% 170.00 170 130 For delivery in 2010/11 160.0 150.0 120 (vessels-as of June 2010): 18.3% 140.0 110 Cape 277/272 130.0 100 Panamax 258/318 120.0 68.4 62.80 90 110.0
Slide 15: Containership Age Profile & Orderbook Delivery Schedule
Containership p Age g Profile & Orderbook Deliveryy Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.8 48.5 % m TEU 6.4 2.0 14.3% 6.0 16.0% 5.6 11.05% 5.2 1.6 4.8 3.14 13 .8% 4.4 0.79 4.0 23.2% 1.2 5.6% 1.26 3.6 4.8% 0.6 1.08 3.2 2.8 15.6% 0.8 0.54 2.4 1.80 1.50 0.44 2.0 0.7 0 5
Slide 16: Market Trends & Opportunities – Bulkers
Market Trends & Opportunities pp – Bulkers » Drybulk trade growth is expected to be strong for 2010 • Trade growth has been running around 6-7% p.a. in 2010H1 and is expected to continue in H2 • Global economic recovery has set the trend • Year-to-date drybulk market strength based on recovering glo
Slide 17: Market Trends & Opportunities - Containerships
Market Trends & Opportunities pp - Containerships p » Freight rates, charter rates and vessel prices significantly recovered in 2010H1 indicating strength of demand for finished ggoods. Containerized trade ggrowth rate is returningg to ppre-crisis levels i.e. 9-10% pp.a. » Charter rates continue tra
Slide 18: Financial Overview
Financial Overview
Slide 19: Financial Highlights: 2nd Quarter and 1st Half of 2009 and 2010
Financial Highlights: g g 2nd Quarter and 1st Half of 2009 and 2010 Second Quarter First Half (in million USD except per g change change g (4) share amounts) 2009 2010 % (4) 2009 2010 % Net Revenues $14.8 $13.7 -7.9% $30.2 $27.5 -8.9% Net Income ($5.4) $0.5 ($1.5) ($2.5) (Gain) / loss on derivatives
Slide 20: Fleet Data for 2nd Quarter and 1st Half of 2009 and 2010
Fleet Data for 2nd Quarter and 1st Half of 2009 and 2010 Fleet Statistics Second Quarter First Half 2009 2010 2009 2010 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 15.11 15.62 15.06 Utilization Rate (%) Overall(1 ) 96.9% 99.3% 94.6% 99.6% Commercial(1 ) 97.6% 100.0% 95.5%
Slide 21: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 8/1/2010 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX(1) $ 5,500 million $15 3.7 G&A $ 700 25.6 2.4 8.0 Interest $ 500 $10 13.8 1.0 2.2 9.6 Drydock $ 1,400 11.6 $5 8.4 7.1 7.0 4.8 Loan Rpmt(2)
Slide 22: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ June 30, 2010: about $ 38m • $25 m unrestricted – abt $13m working capital and restricted » D bt $65.7 Debt: $65 7 m as off June J 30, 30 2010 • Debt to Capitalization ratio about 22.5% » About $20-25 m equity to fund further growth • $18.75 committed to be invest
Slide 23: 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 24: Appendix
Appendix pp Please refer to the Company Company’ss press release of August 10 10, 2010 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 24