Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Capital Link Shipping Investment Conference 2007
18 slides from Euroseas's conference presentation, Mar 23, 2007
Slide 1: Capital Link Shipping Investment Conference
Confidential Capital Link Shipping Investment Conference New York City, NY March 23, 2007
Slide 2: Forward-Looking Statements
Forward- Forward-Looking Statements "forward--looking statements" within the meaning of federal securities laws. Statements in this presentation may be "forward laws. forward--looking statements are based on current management expectations The matters discussed herein that are forward that involve r
Slide 3: Introduction & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services. We own: • Drybulk carriers – transporting iron ore, coal and grains and minor bulks • Container and multipurpose ships – transporting dry and refrigerated cargoes » Formed by industry veterans in June
Slide 4: Recent Offering
Recent Offering Securities: 5,750,000 common shares with full exercise of the shoe Price: $8.25 Priced on: 1/30/2007 Gross Proceeds: $47.4 million Net Proceeds: $43.1 million Use of Proceeds: Repay $7 million of indebtedness and fund future vessel acquisitions After the Offering: • About $35 m avail
Slide 5: Company Profile
Company Profile » Fleet of 10 vessels, including latest acquisition (to be delivered in April 2007) • 4 drybulk carriers, 5 containerships, 1 multipurpose • Average fleet age: 17 years » Focus on maximizing return of investment » Strong cash flow generation – $29.5 m adjusted EBITDA for 2006 (72% ma
Slide 6: Business Strategy – Generate Consistent Shareholder Returns
Business Strategy – Generate Consistent Shareholder Returns » Focus on timely and selective acquisitions of quality secondhand vessels • Drybulk carriers – up to Panamax size ( 75,000 dwt) • Container ships – up to 2,500 teu • Segments with lower supply growth & multiple trading routes and cargoes »
Slide 7: Investment Strategy
Investment Strategy » Demonstrated ability to identify and execute transactions - Since August 2005: • Purchased 6 vessels ~$115.1 million – average age ~16 yrs • Sold 3 eldest vessels ~$7.9 million gain – average age ~26 yrs » Focus on purchasing well-maintained, secondhand vessels – current fleet
Slide 8: Balanced Chartering Strategy
Balanced Chartering Strategy » Period cover extends revenue visibility and predictability while limiting volatility • 80% of capacity days fixed for 2007 and 36% for 2008 in capacity days • Average fixed rate – $18,500 in 2007 and $17,800 in 2008 • Average remaining period charter life – 15 months A
Slide 9: Financial Highlights – Continued Financial Momentum
Financial Highlights – Continued Financial Momentum 3-Months 3-Months Ended Ended December December 31, 31, 2006 2006 Year Year Ended Ended December December 31, 31, 2006 2006 » Fleet utilization: 99.6% » Fleet utilization: 98.9% » Voyage revenue: $12.4 m » Voyage revenue: $42.1 m » Adjusted EBITDA:
Slide 10: Dividend History & Policy
Dividend History & Policy Dividend Dividend History History Dividend Dividend Policy Policy 0.25 » Objective to provide consistent 0.20 dividends • Minimum target quarterly 0.15 dividend of $0.22 per share $ / share • Next dividend in May- May-2007 0.10 » Min Target Dividend equates to 9.3% yield (1
Slide 11: Historical Charter Rates
Historical Charter Rates Historical Historical 1- 1--yr 11- yr Period Period Charter Charter Rates ($/Day)(1) Rates ($/Day) (1) $50,000 • Drybulk markets $45,000 have increased significantly since $40,000 summer ‘06 $35,000 $30,000 • The early 2005 peaks $25,000 have not been $20,000 reached yet but
Slide 12: Historical Vessel Prices
Historical Vessel Prices Historical Historical Prices Prices –– 15 15 year year old Vessels(1) old Vessels (1) $35 $30 $25 $20 million $15 $10 $5 $0 20 -01 20 -05 20 -09 20 -01 20 -05 20 -09 20 -01 20 -05 20 -09 20 -01 20 -05 20 -09 20 -01 20 -05 20 -09 1 -0 02 02 02 03 03 03 04 04 04 05 05 05 06 06
Slide 13: An Example of Investment Evaluation
An Example of Investment Evaluation Purchase Purchase of of m/v m/v ““Birte Birte Ritscher” Ritscher”” Ritscher Ritscher” • 1995-blt containership, 1452 TEU • $19.5 million purchase price • Period Charter $13,450 /day for 1 year • Average over last 15 years about $14,000 /day (1) • Assumption of $14
Slide 14: 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. 2692 Far Vi
Slide 15: Appendix
Appendix
Slide 16: Income Statement, 2004, 2005, 2006 and Q4 2005 & 2006
Income Statement, 2004, 2005, 2006 and Q4 2005 & 2006 Three months ended at INCOME STATEMENT Year ending at December 31, December 31, in '000 US D e xce pt pe r share 2004 2005 2006 2005 2006 amounts and numbe r of ve sse ls (audited) (audited) (audited) (unaudited) (unaudited) Voyage revenue 45,718
Slide 17: Fleet Data for 2004, 2005 and 2006 and Q4 2005 & 2006
Fleet Data for 2004, 2005 and 2006 and Q4 2005 &2006 Ave ra ge Pe r Ve sse l Pe r Day S ta tistics Thre e Months E nde d Y e ar E nde d De ce mbe r 31, De ce mbe r 31, 2004 2005 2006 2005 2006 (unaudite d) (unaudite d) (una udite d) (una udite d) (unaudite d) Numbe r of ve sse ls 7. 31 7. 10 8. 09 7
Slide 18: Adjusted EBITDA
Adjusted EBITDA Reconciliation Reconciliation of of Net Net Income Income to to Adjusted Adjusted EBITDA EBITDA (Unaudited) Unaudited) Three Months Ended Full Year Ended December 31, 2006 December 31, 2006 Net income 4,746,985 20,069,407 Interest and finance costs, net 990,413 2,528,812 (incl. Inter
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