-- Net income of $0.5 million or $0.02 per share basic and diluted on
total net revenues of $13.7 million. Excluding the effect of
unrealized gain and realized loss on derivatives and unrealized loss on
trading securities and amortization of the fair value of charters
acquired, the net income for the period would have been $0.5 million,
or $0.02 per share basic and diluted.
-- Adjusted EBITDA was $5.0 million. Please refer to a subsequent section
of the Press Release for a reconciliation of adjusted EBITDA to net
income.
-- An average of 15.11 vessels were owned and operated during the second
quarter of 2010 earning an average time charter equivalent rate of
$11,903 per day.
-- Declared a quarterly dividend of $0.06 per share for the second quarter
of 2010 payable on September 3, 2010 to shareholders of record on
August 25, 2010. This is the twentieth consecutive quarterly dividend
declared.
First Half 2010 Highlights:
-- Net loss of $2.5 million or $0.08 loss per share basic and diluted on
total net revenues of $27.5 million. Excluding the effect of
unrealized gain and realized loss on derivatives and unrealized loss on
trading securities and amortization of the fair value of charters
acquired, the net income for the period would have been $0.9 million,
or $0.03 per share basic and diluted
-- Adjusted EBITDA was $10.0 million. Please refer to a subsequent section
of the Press Release for a reconciliation of adjusted EBITDA to net
income.
-- An average of 15.06 vessels were owned and operated during the first
half of 2010 earning an average time charter equivalent rate of $12,152
per day.
-- Declared two quarterly dividends for a total of $0.11 per share during
the first half of 2010.
Aristides Pittas, Chairman and CEO of Euroseas, commented: "During the
first half of 2010 we saw a significant recovery of the containership
markets which has enabled us to re-activate one of our 2 laid-up container
vessels and renew expiring charters at slightly higher rates. We expect
that the re-activation of our remaining laid-up containership and the
renewal of the rest of our containership contracts over the remaining of
2010 and 2011 will allow our entire containership fleet to start
contributing again to our earnings in 2011. Our drybulk fleet is fully
covered for 2010 either via physical charters or via FFA contracts and we
have expected and seen little influence on our earnings from the
developments in the market. For 2011 we have 60% secured cover at
profitable rates.
"On the investment front, we have concluded -- as previously announced --
our joint venture with two investment firms to jointly pursue investment
opportunities in shipping. I am happy to report that with our partners, we
have just purchased two 2000-built 2,500 teu containerships.
"In addition, as announced earlier, we have purchased on our own and took
delivery in June of an additional containership, the 1998-built 2,008 teu,
m/v Aggeliki P. We continue to evaluate investment opportunities both in
the containership and drybulk markets and we look forward to continuing our
investment program with accretive opportunities.
"We consider all these quite positive developments evidenced partly in a
profitable second quarter. We are optimistic for the medium and long term
profitability of our company although our third quarter earnings will be
affected by a higher than usual number of vessels due for drydocking.
Reflecting on these positive trends, our Board decided to increase our
quarterly dividend to $0.06 per share -- a 20% increase compared to last
quarter -- which represents an annual yield of about 6.8% on the basis of
our stock price on August 2, 2010."
Tasos Aslidis, Chief Financial Officer of Euroseas, commented: "The results
of the second quarter of 2010 reflect the strengthening of the
containership market compared to the first quarter of 2010 but also the
lower level of the charter rates our fleet has earned compared to the same
period a year ago. Our results were negatively influenced by realized
losses in FFAs and interest rate swap contracts and positively affected by
net unrealized gains on our overall derivative positions.
"Total daily vessel operating expenses, including management fees, general
and administrative expenses but excluding drydocking costs, reflect a
decrease of about 9.8% during the second quarter of 2010 compared to the
same quarter of last year and a decrease of about 11.0% for the six month
periods ended June 30, 2010 over the same period of 2009. As always, we
want to emphasize that cost control remains a key component of our
strategy.
"As of June 30, 2010, our outstanding debt was $65.7 million versus
restricted and unrestricted cash of about $33.3 million not including $4.9
million held as margin for our FFA contracts. As of the same date, our
scheduled debt repayments over the next 12 months amounted to about $13.8
million a number low enough to provide us with significant operational cash
flow comfort. All our debt covenants were satisfied as of June 30, 2010."
Second Quarter 2010 Results:
For the second quarter of 2010, the Company reported total net revenues of
$13.7 million representing a 7.9% decrease over total net revenues of $14.8
million during the second quarter of 2009. The Company reported net income
for the period of $0.5 million as compared to a loss of $5.4 million for
the second quarter of 2009. The results for the second quarter of 2010
include a $3.3 million net unrealized gain on derivatives and trading
securities and a $3.7 million net realized loss on derivatives as compared
to $6.3 million net unrealized loss and $0.8 million realized loss on
derivatives and trading securities for the same period of 2009.
Depreciation expenses for the second quarter of 2010 were $4.4 million
compared to $4.8 million during the same period of 2009. On average, 15.11
vessels were owned and operated during the second quarter of 2010 earning
an average time charter equivalent rate of $11,903 per day compared to 16
vessels in the same period of 2009 earning on average $13,062 per day. M/V
Despina P, one of the Company's containerships, that was laid up since
March 2009 was reactivated in July 2010 and has entered in a time charter
contract that commenced in the first half of July 2010. A second
containership of the Company, M/V Jonathan P was laid-up throughout the
second quarter of 2010.
Adjusted EBITDA for the second quarter of 2010 was $5.0 million, a 26.7%
decrease from $6.8 million achieved during the second quarter of 2009.
Please see below for Adjusted EBITDA reconciliation to net income / loss
and cash flow provided by operating activities.
Basic and diluted earnings per share for the second quarter of 2010 was
$0.02, calculated on 30,849,711 basic and 30,940,288 diluted weighted
average number of shares outstanding, compared to basic and diluted losses
per share of $0.18 for the second quarter of 2009, calculated on 30,575,611
weighted average number of shares outstanding, respectively.
Excluding the effect on the earnings for the quarter of the unrealized gain
on derivatives and the realized loss on derivatives, unrealized loss on
trading securities and amortization of the fair value of time charter
contracts acquired, the earnings per share for the quarter ended June 30,
2010 would have been $0.02 per share basic and diluted compared to earnings
of $0.05 per share for the quarter ended June 30, 2009. Usually, security
analysts do not include the above items in their published estimates of
earnings per share.
First Half 2010 Results:
For the first half of 2010, the Company reported total net revenues of
$27.5 million representing a 8.9% decrease over total net revenues of $30.2
million during the first half of 2009. The Company reported a net loss for
the period of $2.5 million as compared to net loss of $1.5 million for the
first half of 2009. The results for the first half of 2010 include a $4.0
million net unrealized gain on derivatives and trading securities and a
$8.4 million net realized loss on derivatives as compared to $4.5 million
net unrealized loss and $0.6 million net realized loss on derivatives and
trading securities for the same period of 2009.
Depreciation expenses for the first half of 2010 were $8.8 million compared
to $9.3 million during the same period of 2009. On average, 15.06 vessels
were owned and operated during the first half of 2010 earning an average
time charter equivalent rate of $12,152 per day compared to 15.85 vessels
in the same period of 2009 earning on average $12,875 per day. Two of the
Company's vessels were laid up during the entire first half of 2010, of
which one was reactivated in July 2010.
Adjusted EBITDA for the first half of 2010 was $10.0 million, a 22.3%
decrease from $12.8 million achieved during the first half of 2009. Please
see below for Adjusted EBITDA reconciliation to net income/loss and cash
flow provided by operating activities.
Basic and diluted loss per share for the first half of 2010 was $0.08,
calculated on 30,849,711 weighted average number of shares outstanding,
compared to basic and diluted loss per share of $0.05 basic and diluted
per share for the first half of 2009, calculated on 30,575,611 weighted
average number of shares outstanding basic and diluted.
Excluding the effect on the earnings for the first half of 2010 of the
unrealized gain on derivatives, realized loss on derivatives, unrealized
loss on trading securities and amortization of the fair value of time
charter contracts acquired, the earnings per share for the six-month period
ended June 30, 2010 would have been $0.03 per share basic and diluted
compared to earnings of $0.11 per share basic and diluted for the same
period in 2009. Usually, security analysts do not include the above items
in their published estimates of earnings per share.
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
Year
Name Type Dwt TEU Built Employment TCE Rate ($/day)
----------- ------- ------ ---- --------------- ---------------
Dry Bulk
Vessels
----------- ------- ------ ---- --------------- ---------------
PANTELIS Panamax 74,020 2000 TC 'til Feb-12 $ 17,500
----------- ------- ------ ---- --------------- ---------------
TC 'til
Jun/Aug-10 Then
'til Aug-12
(currently
detained off
the coast of
Somalia after $ 15,350
ELENI P Panamax 72,119 1997 being hijacked) $ 23,500
----------- ------- ------ ---- --------------- ---------------
IRINI (*) Panamax 69,734 1988 Baumarine Pool
----------- ------- ------ ---- --------------- ---------------
ARISTIDES
N.P. Panamax 69,268 1993 TC 'til Mar-12 $ 18,900
----------- ------- ------ ---- --------------- ---------------
MONICA P Bulkhandling
(**) Handymax 46,667 1998 Pool
----------- ------- ------ ---- --------------- ---------------
Total Dry
Bulk
Vessels 5 331,808
----------- ------- ------ ---- --------------- ---------------
Multipurpose
Dry Cargo
Vessels
----------- ------- ------ ---- --------------- ---------------
$ 9,500 'til
Dec-10,
TASMAN $ 9,000 'til
TRADER 1 22,568 950 1990 TC 'til Mar-12 Mar-12
----------- ------- ------ ---- --------------- ---------------
Container
Carriers
----------- ------- ------ ---- --------------- ---------------
$ 16,800 'til
Aug-11
$ 18,735 'til
Aug-12
TC 'til Aug-11 $ 19,240 'til
(3 Annual Aug-13
MAERSK options 'til $ 19,750 'til
NOUMEA Intermediate 34,677 2,556 2001 Aug-14) Aug-14
----------- ------- ------ ---- --------------- ---------------
TC 'til Aug-10
(option 'til $ 4,000
TIGER Mar-11) (option $ 4,000
BRIDGE Intermediate 31,627 2,228 1990 'til Mar-12) $ 7,500
----------- ------- ------ ---- --------------- ---------------
AGGELIKI P Intermediate 30,360 2,008 1998 TC 'til May-11 $ 7,000
----------- ------- ------ ---- --------------- ---------------
DESPINA P Handy size 33,667 1,932 1990 TC 'til Dec-10 $ 7,500
----------- ------- ------ ---- --------------- ---------------
JONATHAN P
(ex-OEL
INTEGRITY) Handy size 33,667 1,932 1990 Laid-up
----------- ------- ------ ---- --------------- ---------------
CAPTAIN
COSTAS
(ex-OEL
TRANS- Monthly options
WORLD) Handy size 30,007 1,742 1992 TC 'til Mar-11 $ 4,250
----------- ------- ------ ---- --------------- ---------------
YM PORT
KELANG
(ex-MASTRO
NICOS, ex- TC 'til Nov-10
YM XINGANG (option 'til $ 3,750
I) Handy size 23,596 1,599 1993 Nov-11) $ 5,900
----------- ------- ------ ---- --------------- ---------------
TC 'til Oct-10
(option 'til $ 4,000 CONTEX
MANOLIS P Handy size 20,346 1,452 1995 Oct-11) less 10% (***)
----------- ------- ------ ---- --------------- ---------------
NINOS
(ex-YM TC 'til
QINGDAO I) Feeder 18,253 1,169 1990 March-11 $ 6,800
----------- ------- ------ ---- --------------- ---------------
Monthly options
TC 'til Dec-10
(option 'til $ 3,850
KUO HSIUNG Feeder 18,154 1,169 1993 Jun-11) $ 5,300
----------- ------- ------ ---- --------------- ---------------
Total
Container
Carriers 10 274,354 17,787
----------- ------- ------ ---- --------------- ---------------
Fleet Grand
Total 16 628,730 18,737
----------- ------- ------ ---- --------------- ---------------
(*) "IRINI" is employed in the Baumarine spot pool that is managed by
Klaveness, a major global charterer in the dry bulk area.
(**) "Monica P" is employed in the Bulkhandling spot pool that is also
managed by Klaveness.
(***) CONTEX is a charter market index for 1700 teu containership vessels
Summary Fleet Data:
3 months, 3 months, 6 months, 6 months,
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2010 2009 2010
--------- --------- --------- ---------
FLEET DATA
Average number of vessels (1) 16.00 15.11 15.85 15.06
Calendar days for fleet (2) 1,456.0 1,375 2,869.0 2,725.0
Scheduled off-hire days incl.
laid-up (3) 293.0 213.9 373.0 423.6
Available days for fleet (4) =
(2) - (3) 1,163.0 1,161.1 2,496.0 2,301.4
Commercial off-hire days (5) 28.2 - 112.4 -
Operational off-hire days (6) 8.3 8.2 21.3 9.5
Voyage days for fleet (7) =
(4) - (5) - (6) 1,126.5 1,152.9 2,362.3 2,291.9
Fleet utilization (8) =
(7) / (4) 96.9% 99.3% 94.6% 99.6%
Fleet utilization, commercial
(9) = ((4) - (5)) / (4) 97.6% 100% 95.5% 100%
Fleet utilization, operational
(10) = ((4) - (6)) / (4) 99.3% 99.3% 99.1% 99.6%
AVERAGE DAILY RESULTS
Time charter equivalent rate
(11) 13,062 11,903 12,875 12,152
Vessel operating expenses excl.
drydocking expenses (12) 4,906 4,360 5,081 4,416
General and administrative
expenses (13) 672 671 722 747
Total vessel operating expenses
(14) 5,578 5,031 5,803 5,163
--------- --------- --------- ---------
Drydocking expenses (15) - 630 - 679
--------- --------- --------- ---------
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of
calendar days each vessel was a part of our fleet during the period divided
by the number of calendar days in that period.
(2) Calendar days. We define calendar days as the total number of days in a
period during which each vessel in our fleet was in our possession
including off-hire days associated with major repairs, drydockings or
special or intermediate surveys or days of vessels in lay-up. Calendar days
are an indicator of the size of our fleet over a period and affect both the
amount of revenues and the amount of expenses that we record during that
period.
(3) The scheduled off-hire days including vessels laid-up are days
associated with scheduled repairs, drydockings or special or intermediate
surveys or days of vessels in lay-up. The shipping industry uses available
days to measure the number of days in a period during which vessels were
available to generate revenues.
(4) Available days. We define available days as the total number of days in
a period during which each vessel in our fleet was in our possession net of
scheduled off-hire days including days of vessels laid-up.
(5) Commercial off-hire days. We define commercial off-hire days as days
waiting to find employment.
(6) Operational off-hire days. We define operational off-hire days as days
associated with unscheduled repairs or other off-hire time related to the
operation of the vessels,
(7) Voyage days. We define voyage days as the total number of days in a
period during which each vessel in our fleet was in our possession net of
commercial and operational off-hire days. The shipping industry uses voyage
days to measure the number of days in a period during which vessels
actually generate revenues.
(8) Fleet utilization. We calculate fleet utilization by dividing the
number of our voyage days during a period by the number of our available
days during that period. The shipping industry uses fleet utilization to
measure a company's efficiency in finding suitable employment for its
vessels and minimizing the amount of days that its vessels are off-hire for
reasons such as unscheduled repairs or days waiting to find employment.
(9) Fleet utilization, commercial. We calculate commercial fleet
utilization by dividing our available days net of commercial off-hire days
during a period by our available days during that period.
(10) Fleet utilization, operational. We calculate operational fleet
utilization by dividing our available net of operational off-hire days
during a period by our available days during that period.
(11) Time charter equivalent, or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is determined by
dividing revenue generated from voyage charters net of voyage expenses by
available days for the relevant time period. Voyage expenses primarily
consist of port, canal and fuel costs that are unique to a particular
voyage, which would otherwise be paid by the charterer under a time charter
contract, as well as commissions. TCE is a standard shipping industry
performance measure used primarily to compare period-to-period changes in a
shipping company's performance despite changes in the mix of charter types
(i.e., spot voyage charters, time charters and bareboat charters) under
which the vessels may be employed between the periods.
(12) Daily vessel operating expenses, which includes crew costs,
provisions, deck and engine stores, lubricating oil, insurance, maintenance
and repairs and management fees are calculated by dividing vessel operating
expenses by fleet calendar days for the relevant time period. Drydocking
expenses are reported separately.
(13) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period.
(14) Total vessel operating expenses, or TVOE, is a measure of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses excluding drydocking expenses and general and
administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet
calendar days for the relevant time period.
(15) Drydocking expenses, which include expenses during drydockings that
would been capitalized and amortized under the deferral method divided by
the fleet calendar days for the relevant period. Drydocking expenses could
vary substantially from period to period depending on how many vessels
underwent drydocking during the period.
Conference Call and Webcast:
Tomorrow, Wednesday, August 11, 2010 at 10:00 a.m. EDT, the company's
management will host a conference call to discuss the results.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (from the US), 0800 953 0329
(from the UK) or +44 (0)1452 542 301 (international standard dial in).
Please quote "Euroseas."
In case of any problems with the above numbers, please dial 1 866 223 0615
(from the US), 0800 694 1503 (from the UK) or +44 (0)1452 586 513
(international standard dial in). Quote "Euroseas."
A recording of the conference call will be available until August 19, 2010
by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44
(0)1452 550 000 (international standard dial in). Access Code: 6973591#
Audio webcast -- Slides Presentation:
There will be a live and then archived audio webcast of the conference
call, via the internet through the Euroseas website (www.euroseas.gr).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast. A slide
presentation on the Second Quarter and First Half 2010 results in PDF
format will also be available 30 minutes prior to the conference call and
webcast accessible on the company's website (www.euroseas.gr) on the
webcast page. Participants to the webcast can download the PDF
presentation.
Euroseas Ltd.
Consolidated Condensed Statements of Operations
(All amounts expressed in U.S. Dollars - except share amounts)
Three Three
Months Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2010 2009 2010
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
Voyage revenue 15,423,831 14,162,331 31,344,875 28,443,513
Commissions (576,782) (481,215) (1,188,660) (967,672)
Net revenues 14,847,049 13,681,116 30,156,215 27,475,841
Operating expenses
Voyage expenses 280,235 454,496 857,576 607,254
Vessel operating
expenses 5,952,620 4,892,161 12,200,619 9,757,490
Drydocking expenses - 866,720 - 1,850,763
Amortization and
depreciation 4,782,779 4,413,446 9,283,929 8,805,492
Management fees 1,191,603 1,103,297 2,374,359 2,275,545
Other general and
administrative
expenses 978,725 922,721 2,070,858 2,035,587
Charter termination
fees and other income - (153,500) (103,577) (153,500)
Total operating
expenses 13,185,962 12,499,341 26,683,764 25,178,631
Operating income 1,661,087 1,181,775 3,472,451 2,297,210
Other income/(expenses)
Interest and finance
cost (364,730) (362,432) (688,453) (724,977)
Loss on derivatives,
net (7,842,832) (411,392) (5,778,948) (4,347,934)
Realized & unrealized
gain/ (loss) on
trading securities 765,280 (53,899) 660,705 (80,509)
Foreign exchange
(loss)/ gain (4,746) (3,636) 24,847 7,148
Interest income 339,352 178,135 808,082 385,959
Other expenses, net (7,107,676) (653,224) (4,973,767) (4,760,313)
----------- ----------- ----------- -----------
Net income / (loss) (5,446,589) 528,551 (1,501,316) (2,463,103)
----------- ----------- ----------- -----------
Earnings (loss), per
share, basic (0.18) 0.02 (0.05) (0.08)
Weighted average number
of shares, basic 30,575,611 30,849,711 30,575,611 30,849,711
----------- ----------- ----------- -----------
Earnings (loss), per
share, diluted (0.18) 0.02 (0.05) (0.08)
----------- ----------- ----------- -----------
Weighted average number
of shares, diluted 30,575,611 30,940,288 30,575,611 30,849,711
----------- ----------- ----------- -----------
Euroseas Ltd.
Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars - except share amounts)
December 31, June 30,
2009 2010
----------- -----------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents 40,984,549 25,229,988
Due from Related company - 528,153
Trade accounts receivable 1,650,713 1,388,619
Other receivables, net 239,656 999,009
Inventories 1,869,238 1,790,206
Restricted cash 1,191,230 1,265,343
Other deposits 12,376,119 4,882,031
Trading securities 436,598 356,089
Prepaid expenses 185,137 298,391
Total current assets 58,933,240 36,737,829
Fixed assets:
Vessels, net 257,270,824 264,595,506
Long-term assets:
Restricted cash 6,500,000 6,800,000
Deferred charges, net 327,694 276,520
Derivatives 386,536 -
Total long-term assets 264,485,054 271,672,026
----------- -----------
Total assets 323,418,294 308,409,855
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Long term debt, current portion 14,030,000 13,790,000
Trade accounts payable 1,843,182 3,320,930
Accrued expenses 1,060,326 1,744,541
Accrued dividends 46,750 70,250
Deferred revenue 1,247,782 1,979,604
Derivatives 10,799,132 5,145,359
Due to related company 1,416,380 -
Total current liabilities 30,443,552 26,050,684
Long-term liabilities:
Long term debt, net of current portion 57,485,000 51,950,000
Derivatives 611,852 1,820,294
Fair value of below market time charter
acquired 3,424,627 2,371,419
Total long-term liabilities 61,521,479 56,141,713
Total liabilities 91,965,031 82,192,397
Shareholders' equity:
Common stock (par value $0.03, 100,000,000
shares authorized, 30,849,711 issued and
outstanding) 925,492 925,492
Preferred shares (par value $0.01, 20,000,000
shares authorized, no shares issued and
outstanding)
Additional paid-in capital 235,588,391 235,924,159
Accumulated deficit (5,060,620) (10,632,193)
Total shareholders' equity 231,453,263 226,217,458
----------- -----------
Total liabilities and shareholders' equity 323,418,294 308,409,855
----------- -----------
Euroseas Ltd.
Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)
Six Months Six Months
Ended Ended
June 30, June 30,
2009 2010
------------ ------------
(unaudited) (unaudited)
------------ ------------
Cash flows from operating activities:
Net loss (1,501,316) (2,463,103)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation of vessels 9,283,929 8,805,492
Amortization of deferred charges 46,611 51,174
Amortization of fair value of time charters (601,691) (1,053,208)
Share-based compensation 552,001 335,769
Unrealized loss / (gain) on derivatives, net 4,786,475 (4,058,795)
Sale of trading securities 741,248 -
Realized gain on trading securities (411,444) -
Unrealized (gain) / loss on trading securities (249,261) 80,509
Changes in operating assets and liabilities (5,673,515) 7,676,136
------------ ------------
Net cash provided by operating activities 6,973,037 9,373,974
------------ ------------
Cash flows from investing activities:
Purchase of vessels including improvements (34,667,188) (15,850,000)
Advances for vessels acquisition (2,751,326) -
Change in restricted cash (411,262) (374,113)
Proceeds from sale of vessels 5,980,487 -
------------ ------------
Net cash (used in) investing activities (31,849,289) (16,224,113)
------------ ------------
Cash flows from financing activities:
Dividends paid (6,115,122) (3,084,971)
Offering expenses paid - (44,451)
Loan arrangements fees paid (135,000) -
Proceeds from long-term debt 20,000,000 -
Repayment of long-term debt (6,475,000) (5,775,000)
------------ ------------
Net cash provided by (used in) financing
activities 7,274,878 (8,904,422)
------------ ------------
Net decrease in cash and cash equivalents (17,601,374) (15,754,561)
Cash and cash equivalents at beginning of
period 73,851,191 40,984,549
------------ ------------
Cash and cash equivalents at end of period 56,249,817 25,229,988
------------ ------------
Euroseas Ltd.
Reconciliation of Adjusted EBITDA to
Net Income / (loss) and Cash Flow Provided By Operating Activities
(All amounts expressed in U.S. Dollars)
Three Three
Months Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2010 2009 2010
---------- ---------- ---------- ----------
Net income / (loss) (5,446,589) 528,551 (1,501,316) (2,463,103)
---------- ---------- ---------- ----------
Interest and finance costs,
net (incl. interest
income) 25,378 184,297 (119,629) 339,018
---------- ---------- ---------- ----------
Depreciation and
amortization 4,782,779 4,413,446 9,283,929 8,805,492
---------- ---------- ---------- ----------
Loss on derivatives, net 7,842,832 411,392 5,778,948 4,347,934
---------- ---------- ---------- ----------
Amortization of deferred
revenue of below market
time charter acquired (1,101,598) (526,604) (2,077,237) (1,053,208)
---------- ---------- ---------- ----------
Amortization of deferred
revenue of above market
time charter acquired 737,773 0 1,475,546 0
---------- ---------- ---------- ----------
Adjusted EBITDA 6,840,575 5,011,082 12,840,241 9,976,133
---------- ---------- ---------- ----------
Three Three
Months Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2010 2009 2010
---------- ---------- ---------- ----------
Net cash flow provided by
operating activities 540,672 6,644,306 6,973,037 9,373,974
---------- ---------- ---------- ----------
Changes in operating
assets / liabilities 5,351,160 (5,325,087) 5,673,515 (7,676,136)
---------- ---------- ---------- ----------
Loss on interest rate and
FFA derivatives (realized) 1,206,813 3,747,705 992,473 8,406,730
---------- ---------- ---------- ----------
Gain / (loss) on trading
securities, net 765,280 (53,899) 660,705 (80,509)
---------- ---------- ---------- ----------
Sale of trading securities,
net (741,248) 0 (741,248) 0
---------- ---------- ---------- ----------
Share-based compensation (282,925) (160,652) (552,001) (335,769)
---------- ---------- ---------- ----------
Interest, net 823 158,709 (166,240) 287,843
---------- ---------- ---------- ----------
Adjusted EBITDA 6,840,575 5,011,082 12,840,241 9,976,133
---------- ---------- ---------- ----------
EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before
interest, income taxes, depreciation, amortization, gain / loss in
derivatives and amortization of deferred revenues from above or below
market time charters acquired. Adjusted EBITDA does not represent and
should not be considered as an alternative to net income or cash flow from
operations, as determined by United States generally accepted accounting
principles, or U.S. GAAP, and our calculation of Adjusted EBITDA may not be
comparable to that reported by other companies. Adjusted EBITDA is included
herein because it is a basis upon which we assess our financial performance
and liquidity position and because we believe that it presents useful
information to investors regarding a company's ability to service and/or
incur indebtedness. The Company's definition of Adjusted EBITDA may not be
the same as that used by other companies in the shipping or other
industries.
Euroseas Ltd.
Reconciliation of Net Income / (loss) Excluding the Effect from Unrealized
Loss / (Gain) and Realized Loss on derivatives, Unrealized (Gain) / Loss
on trading securities and Amortization of the Fair Value of Charters
Acquired to Net Income
(All amounts expressed in U.S. Dollars - except share data and per share
amounts)
Three Three
Months Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2010 2009 2010
---------- ---------- ---------- ----------
Net income / (loss) (5,446,589) 528,551 (1,501,316) (2,463,103)
---------- ---------- ---------- ----------
Unrealized loss / (gain)
on derivatives, net 6,636,019 (3,336,313) 4,786,475 (4,058,796)
---------- ---------- ---------- ----------
Unrealized (gain) / loss
on trading securities (353,836) 53,899 (249,261) 80,509
---------- ---------- ---------- ----------
Realized loss on derivatives 1,206,813 3,747,705 992,473 8,406,730
---------- ---------- ---------- ----------
Amortization of deferred
revenue of below market
time charter acquired (1,101,598) (526,604) (2,077,237) (1,053,208)
---------- ---------- ---------- ----------
Amortization of deferred
revenue of above market
time charter acquired 737,773 - 1,475,546 -
---------- ---------- ---------- ----------
Net Income excluding
unrealized loss / (gain)
on derivatives, unrealized
(gain) / loss on trading
securities, realized loss
on derivatives,
amortization of the fair
value of charters acquired 1,678,582 467,238 3,426,680 912,132
---------- ---------- ---------- ----------
Net Income per share
excluding unrealized loss /
(gain) on derivatives,
unrealized (gain) / loss
on trading securities,
realized loss on
derivatives, amortization
of the fair value of
charters acquired, basic 0.05 0.02 0.11 0.03
---------- ---------- ---------- ----------
Weighted average number of
shares, basic 30,575,611 30,849,711 30,575,611 30,849,711
---------- ---------- ---------- ----------
Net Income per share
excluding unrealized loss /
(gain) on derivatives,
unrealized (gain) / loss
on trading securities,
realized loss on
derivatives, amortization
of the fair value of
charters acquired, diluted 0.05 0.02 0.11 0.03
---------- ---------- ---------- ----------
Weighted average number of
shares, diluted 30,680,038 30,940,288 30,641,379 30,921,342
---------- ---------- ---------- ----------
About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of
the Marshall Islands to consolidate the ship owning interests of the Pittas
family of Athens, Greece, which has been in the shipping business over the
past 136 years. Euroseas trades on the NASDAQ Global Market under the
ticker ESEA since January 31, 2007.
Euroseas operates in the dry cargo, drybulk and container shipping markets.
Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000
certified affiliated ship management company, which is responsible for the
day-to-day commercial and technical management and operations of the
vessels. Euroseas employs its vessels on spot and period charters and
through pool arrangements.
The Company has a fleet of 16 vessels, including 4 Panamax drybulk carriers
and 1 Handymax drybulk carrier, 3 Intermediate containership, 5 Handysize
containerships, 2 Feeder containerships and a multipurpose dry cargo
vessel. Euroseas` 5 drybulk carriers have a total cargo capacity of 331,808
dwt, its 10 containerships have a cargo capacity of 17,787 teu and its
multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.
Forward-Looking Statement
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended) concerning future events
and the Company's growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further time
charters. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and
similar expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that
such expectations will prove to have been correct. These statements involve
known and unknown risks and are based upon a number of assumptions and
estimates that are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of the Company. Actual
results may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to changes in the demand for
dry bulk vessels and container ships, competitive factors in the market in
which the Company operates; risks associated with operations outside the
United States; and other factors listed from time to time in the Company's
filings with the Securities and Exchange Commission. The Company expressly
disclaims any obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is based.
Visit our website www.euroseas.gr
Contact Information: Company Contact Tasos Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: aha@euroseas.gr Investor Relations / Financial Media Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com