Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner
and operator of container carrier vessels and provider of seaborne
transportation for containerized cargoes, announced today its
results for the three and six month period ended June 30, 2020.
Second Quarter 2020 Financial
Highlights:
- Total net revenues of $13.5
million. Net income of $1.3 million and net income attributable to
common shareholders (after a $0.2 million dividend on Series B
Preferred Shares) of $1.1 million or $0.20 earnings per share basic
and diluted. Adjusted net income attributable to common
shareholders1 for the period was $1.4 million or $0.25 per share
basic and diluted.
- Adjusted EBITDA1 was $4.4
million.
- An average of 19.00 vessels were
owned and operated during the second quarter of 2020 earning an
average time charter equivalent rate of $9,458 per day.
First Half 2020 Financial Highlights:
- Total net revenues of $28.9
million. Net income of $3.2 million; net income attributable to
common shareholders (after a $0.3 million of dividend on Series B
Preferred Shares) of $2.9 million or $0.52 earnings per share basic
and diluted. Adjusted net income attributable to common
shareholders1 for the period was $2.3 million or $0.42 per share
basic and diluted.
- Adjusted EBITDA1 was $8.4
million.
- An average of 19.00 vessels were
owned and operated during the first half of 2020 earning an average
time charter equivalent rate of $9,541 per day.
1 Adjusted EBITDA, Adjusted net income/(loss)
and Adjusted earnings/(loss) per share are not recognized
measurements under US GAAP (GAAP) and should not be used in
isolation or as a substitute for Euroseas financial results
presented in accordance with GAAP. Refer to a subsequent section of
the Press Release for the definitions and reconciliation of these
measurements to the most directly comparable financial measures
calculated and presented in accordance with GAAP.
Other Developments
During the second quarter of 2020, the Company
agreed with certain of its lenders to defer a portion of its 2020
loan repayments to be repaid together with the respective balloon
installments. A total of $4.7 million was rescheduled to December
2021 or within 2022. Furthermore, the Company agreed with the
holders of its Series B Preferred Shares to have the option of
paying the quarterly dividends in-kind, for the period from April
1, 2020 to January 29, 2021, by issuing additional Series B
Preferred Shares and increasing the dividend rate to 9% (from 8%)
if paid in-kind.
During July 2020, the Company completed the sale
of three of its vessels, M/V Manolis P, M/V EM Oinousses and M/V
Kuo Hsiung for a total of approximately $7.6 million of net
proceeds of which $7.0 million was used to repay the outstanding
loans of the vessels. Aristides Pittas, Chairman and CEO of
Euroseas commented: “The second quarter of 2020 turned out
to be highly profitable despite the challenges of the pandemic
which affected the charter rates of our vessels in the second half
of the period and the numerous operational difficulties that we
encountered. We have responded quickly to address the possibility
of cash flow squeeze issues by agreeing with certain of our banks
to defer installments and relax restricted cash covenants in case
such liquidity is needed. At the same time, certain planned sales
of our vessels for scrap were delayed and eventually completed in
Q3 at lower prices, as a result of lockdowns and declines in scrap
steel demand. In addition, port lockdowns have affected our ability
to change crew on board our vessels. We have taken relevant
measures to ensure our crew members’ and shore employees’ health
and safety, despite the ongoing hurdles and travel restrictions
imposed by lockdowns around the world.
“Looking forward, however, we are encouraged
with the starting recovery of the charter market in late July 2020,
but we still believe that the economic uncertainties remain high
due to both the possibility of recurrence of the COVID-19 pandemic
and the continuing trade tensions between the U.S. and China, which
affect the containership markets. The record low orderbook remains
a positive characteristic of the containership sector which would
allow a resumption of trade to normal levels to be translated in
much improved market rates. In the meantime, our focus remains on
ensuring that our vessels remain employed. On the strategic front,
we continue to evaluate opportunities for mergers with other fleets
or vessel acquisitions by issuing shares at non-dilutive
levels.”
Tasos Aslidis, Chief Financial Officer
of Euroseas commented: “The results of the second quarter
of 2020 reflect the significantly increased net revenues
compared to the same period of 2019, as we operated an average of
19.0 vessels, versus 11.0 vessels during the same period last year,
even though two of our vessels remained idle during the quarter
waiting to be scrapped. Our results have also benefitted from other
income of $2.7 million, net related to insurance proceeds for our
vessel M/V EM Oinousses, which had been idle since January 2020 and
compensated for the costs and LOH incurred both in Q1 and Q2.
“Total daily vessel operating expenses,
including management fees, general and administrative expenses but
excluding drydocking costs, averaged $6,120 per vessel per day
during the second quarter of 2020 as compared to $6,423 per vessel
per day for the same quarter of last year, and $6,003 per vessel
per day for the first half of 2020 as compared to $6,324 per vessel
per day for the same period of 2019, reflecting a 4.7% and 5.1%
decrease, respectively, which is attributed to the different
composition of our fleet during the periods. As always, we want to
emphasize that cost control remains a key component of our
strategy.”
“Adjusted EBITDA during the second quarter of
2020 was $4.4 million versus $1.6 million in the second quarter of
last year. As of June 30, 2020, our outstanding debt
(excluding the unamortized loan fees) was $84.3 million versus
restricted and unrestricted cash of $3.9 million. As of the same
date, our scheduled bank debt repayments over the next 12 months
amounted to about $13.4 million (excluding the unamortized loan
fees), and we are in compliance with all our loan covenants.”
Second Quarter 2020 Results:For
the second quarter of 2020, the Company reported total net revenues
of $13.5 million representing a 67.2% increase over total net
revenues of $8.1 million during the second quarter of 2019 which
was a result of the increased average number of vessels in the
second quarter of 2020 compared to the same period of 2019. Market
charter rates during the second quarter of 2020 were on average at
higher levels for our containership vessels compared to the
corresponding period in 2019 due to the different composition of
our fleet, which in the second quarter of 2020 contained younger
and larger vessels on average compared to the corresponding period
in 2019, which was also reflected in the average earnings of our
ships. The Company reported net income for the period of $1.3
million and net income attributable to common shareholders of $1.1
million, as compared to a net loss of $0.7 million and a net loss
attributable to common shareholders of $1.7 million, respectively,
for the same period of 2019. Drydocking expenses amounted to $0.4
million during the second quarter of 2020 as one vessel passed its
intermediate survey in water and another vessel its special survey
in-water. In the corresponding period of 2019, one vessel passed
its intermediate survey in-water. Depreciation expenses for the
second quarter of 2020 amounted to $1.7 million compared to $0.8
million for the same period of 2019. Vessel operating expenses were
$8.5 million in the second quarter of 2020 as compared to $5.0
million for the second quarter of 2019, mainly due to the increased
average number of vessels operated due to the increased number of
vessels in the Company’s fleet. General and administrative expenses
amounted to $0.8 million for the second quarter of 2020 marginally
higher compared to $0.7 million for the second quarter of 2019. On
average, 19.0 vessels were owned and operated during the second
quarter of 2020 earning an average time charter equivalent rate of
$9,458 per day compared to 11.0 vessels in the same period of 2019
earning on average $8,307 per day.
Interest and other financing costs for the
second quarter of 2020 amounted to $1.1 million compared to $0.8
million for the same period of 2019. Interest during the second
quarter of 2020 was higher due to higher average outstanding debt
during the period as compared to the same period of last year,
partly offset by the decreased Libor rates of our bank loans during
the period as compared to the same period of last year.
Adjusted EBITDA for the second quarter of 2020
was $4.4 million compared to $1.6 million achieved during the
second quarter of 2019.
Basic and diluted earnings per share
attributable to common shareholders for the second quarter of 2020
was $0.20 calculated on 5,576,960 basic and diluted weighted
average number of shares outstanding, compared to basic and diluted
loss per share of $1.12 for the second quarter of 2019, calculated
on 1,542,508 basic and diluted weighted average number of shares
outstanding.
Excluding the effect on the income attributable
to common shareholders for the quarter of the unrealized loss on
derivatives and the amortization of below time market charters
acquired, the adjusted earnings per share attributable to common
shareholders for the quarter ended June 30, 2020 would have been
$0.25, compared to adjusted loss of $1.14 per share basic and
diluted for the quarter ended June 30, 2019. Usually, security
analysts do not include the above items in their published
estimates of earnings per share.
First Half 2020 Results:For the
first half of 2020, the Company reported total net revenues of
$28.9 million representing a 76.3% increase over total net revenues
of $16.4 million during the first half of 2019, as a result of the
increased average number of vessels. Market charter rates in the
six months of 2020 were on average at higher levels for our
containership vessels compared to the first six months of 2019 due
to the different composition of our fleet, which in the first six
months of 2020 contained younger and larger vessels on average
compared to the corresponding period in 2019, which was also
reflected in the average earnings of our ships. The Company
reported net income for the period of $3.2 million and net income
attributable to common shareholders of $2.9 million, as compared to
a net loss of $0.8 million and a net loss attributable to common
shareholders of $2.2 million respectively, for the first half of
2019. Depreciation expenses for the first half of 2020 were $3.4
million compared to $1.6 million during the same period of 2019. On
average, 19.0 vessels were owned and operated during the first half
of 2020 earning an average time charter equivalent rate of $9,541
per day compared to 11.0 vessels in the same period of 2019 earning
on average $8,693 per day.
Interest and other financing costs for the first
half of 2020 amounted to $2.4 million compared to $1.5 million for
the same period of 2019. This increase is due to the increased
amount of debt in the current period compared to the same period of
2019, partly offset by the decreased Libor rates of our bank loans
during the period as compared to the same period of last
year.
Adjusted EBITDA for the first half of 2020 was
$8.4 million compared to $3.0 million achieved during the first
half of 2019.
Basic and diluted earnings per share
attributable to common shareholders for the first half of 2020 was
$0.52, calculated on 5,576,960 basic and diluted weighted average
number of shares outstanding compared to basic and diluted loss per
share of $1.44 for the first half of 2019, calculated on 1,542,508
basic and diluted weighted average number of shares
outstanding.
Excluding the effect on the income attributable
to common shareholders for the first half of the year of the
unrealized loss on derivatives and the amortization of below market
time charters acquired, the adjusted earnings per share
attributable to common shareholders for the six-month period ended
June 30, 2020 would have been $0.42, compared to adjusted net loss
of $1.47 per share basic and diluted for the same period in 2019.
As mentioned above, usually, security analysts do not include the
above items in their published estimates of earnings per share.
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
Name |
Type |
Dwt |
TEU |
YearBuilt |
Employment(*) |
TCE Rate ($/day) |
Container Carriers |
|
|
|
|
|
|
AKINADA BRIDGE |
Intermediate |
71,366 |
5,610 |
2001 |
TC until Oct-20 |
$16,000 |
SYNERGY BUSAN |
Intermediate |
50,726 |
4,253 |
2009 |
TC until Oct-20plus 4-6 monthsoption |
$8,100; option$12,000 |
SYNERGY ANTWERP |
Intermediate |
50,726 |
4,253 |
2008 |
TC until Dec-20 |
$8,000 |
SYNERGY OAKLAND |
Intermediate |
50,787 |
4,253 |
2009 |
TC until Aug-20plus 8-12 monthsextension option |
$10,000 untilOct-20; optionCONTEX(**) 4250less 10% |
SYNERGY KEELUNG |
Intermediate |
50,969 |
4,253 |
2009 |
TC untilDec-20/Jun-22plus 8- 12 monthsoption |
$10,000 untilJun-21; $11,750 untilJun-22; option$14,500 |
EM KEA |
Feeder |
42,165 |
3,100 |
2007 |
TC until Oct-20 |
$8,100 |
EM ASTORIA |
Feeder |
35,600 |
2,788 |
2004 |
TC until Sep-20 |
$8,500 |
EVRIDIKI G |
Feeder |
34,677 |
2,556 |
2001 |
TC until Sep-20 |
$10,250 |
EM CORFU |
Feeder |
34,654 |
2,556 |
2001 |
TC until Sep-21 |
$10,200 |
EM ATHENS |
Feeder |
32,350 |
2,506 |
2000 |
TC until Oct-20 |
$9,250 |
DIAMANTIS P |
Feeder |
30,360 |
2,008 |
1998 |
TC until Aug- 21 |
$6,500 |
EM SPETSES |
Feeder |
23,224 |
1,740 |
2007 |
TC until Aug-20plus 5-7 monthsoption |
$7,000; option$8,100 |
EM HYDRA |
Feeder |
23,351 |
1,740 |
2005 |
TC until Aug-20 |
$7,000 |
JOANNA |
Feeder |
22,301 |
1,732 |
1999 |
TC until Feb-21 |
$8,050 |
AEGEAN EXPRESS |
Feeder |
18,581 |
1,439 |
1997 |
TC until Aug-20 |
$5,900 |
NINOS |
Feeder |
18,253 |
1,169 |
1990 |
TC until Aug-20 |
$6,500 |
Total Container Carriers |
16 |
590,090 |
45,956 |
|
|
|
Note: (*) Represents the earliest redelivery
date(**) The CONTEX (Container Ship Time Charter
Assessment Index) has been published by the Hamburg and Bremen
Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a
company-independent index of time charter rates for container
ships. It is based on assessments of the current day charter rates
of six selected container ship types, which are representative of
their size categories: Type 1,100 TEU and Type 1,700 TEU with a
charter period of one year, and the Types 2,500, 2,700, 3,500 and
4,250 TEU all with a charter period of two years.
Summary Fleet Data:
|
Three months, endedJune 30,
2019 |
|
Three months, endedJune 30,
2020 |
|
Six months, endedJune 30,
2019 |
|
Six months, endedJune 30,
2020 |
|
FLEET DATA |
|
|
|
|
Average number of vessels (1) |
11.00 |
|
19.00 |
|
11.00 |
|
19.00 |
|
Calendar days for fleet (2) |
1,001.0 |
|
1,729.0 |
|
1,991.0 |
|
3,458.0 |
|
Scheduled off-hire days incl. laid-up (3) |
0.0 |
|
210.3 |
|
36.4 |
|
210.3 |
|
Available days for fleet (4) = (2) - (3) |
1,001.0 |
|
1,518.7 |
|
1,954.6 |
|
3,247.7 |
|
Commercial off-hire days (5) |
32.8 |
|
81.6 |
|
38.4 |
|
99.8 |
|
Operational off-hire days (6) |
0.2 |
|
3.9 |
|
0.5 |
|
69.7 |
|
Voyage days for fleet (7) = (4) - (5) - (6) |
968.0 |
|
1,433.2 |
|
1,915.7 |
|
3,078.2 |
|
Fleet utilization (8) = (7) / (4) |
96.7 |
% |
94.4 |
% |
98.0 |
% |
94.8 |
% |
Fleet utilization, commercial (9) = ((4) - (5)) / (4) |
96.7 |
% |
94.6 |
% |
98.0 |
% |
96.9 |
% |
Fleet utilization, operational (10) = ((4) - (6)) / (4) |
100.0 |
% |
99.7 |
% |
100.0 |
% |
97.9 |
% |
|
|
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
Time charter equivalent rate (11) |
8,307 |
|
9,458 |
|
8,693 |
|
9,541 |
|
Vessel operating expenses excl. drydocking expenses (12) |
5,763 |
|
5,665 |
|
5,693 |
|
5,544 |
|
General and administrative expenses (13) |
660 |
|
455 |
|
631 |
|
459 |
|
Total vessel operating expenses (14) |
6,423 |
|
6,120 |
|
6,324 |
|
6,003 |
|
Drydocking expenses (15) |
181 |
|
210 |
|
388 |
|
109 |
|
(1) Average number of vessels is the number of
vessels that constituted the Company’s fleet for the relevant
period, as measured by the sum of the number of calendar days each
vessel was a part of the Company’s 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, vessels committed for sale or vessels that
suffered unrepaired damages are days associated with scheduled
repairs, drydockings or special or intermediate surveys or days of
vessels in lay-up, or of vessels that were committed for sale or
suffered unrepaired damages.
(4) Available days. We define available days as
the Calendar days in a period net of scheduled off-hire days
including laid up. We use available days to measure the number of
days in a period during which vessels were available to generate
revenues.
(5) Commercial off-hire days. We define
commercial off-hire days as days a vessel is idle without
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. We use voyage days to measure the number of days in
a period during which vessels actually generate revenues or are
sailing for repositioning purposes.
(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. We
use 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
days net of operational off-hire days during a period by our
available days during that period.
(11) Time charter equivalent rate, or TCE rate,
is a measure of the average daily revenue performance of our
vessels. Our method of calculating TCE is determined by dividing
time charter revenue and voyage charter revenue net of voyage
expenses by voyage 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, or are related to
repositioning the vessel for the next charter. 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, pool agreements and bareboat charters)
under which the vessels may be employed between the periods. Our
definition of TCE may not be comparable to that used by other
companies in the shipping industry.
(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
are calculated by dividing general and administrative expenses 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, include expenses
during drydockings that would have 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. The Company expenses drydocking
expenses as incurred.
Conference Call and Webcast:On
Wednesday, August 12, 2020 at 10:00 a.m. Eastern Time, the
Company's management will host a conference call and webcast to
discuss the results.
Conference Call
details: Participants should dial into the call
10 minutes before the scheduled time using the following numbers: 1
(877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll
Free Dial In) or +44 (0) 2071 928592 (Standard International Dial
In). Please quote "Euroseas" to the operator.
A telephonic replay of the conference call will
be available until August 18, 2020, by dialing 1(866) 331-1332 (US
Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44
(0) 3333 009785 (Standard International Dial In) and the
access code required for the replay is: 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 2020 results in PDF format will also be available 10
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. Unaudited
Consolidated Condensed Statements of
Operations(All amounts expressed in U.S. Dollars –
except number of shares)
|
Three Months Ended June 30, |
Three Months Ended June 30, |
Six Months Ended June 30, |
Six Months Ended June 30, |
|
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
(unaudited) |
(unaudited) |
Revenues |
|
|
|
|
Time charter revenue |
8,440,684 |
|
14,135,109 |
|
17,169,670 |
|
30,266,431 |
|
Commissions |
(359,165 |
) |
(626,398 |
) |
(750,020 |
) |
(1,324,913 |
) |
Net revenues |
8,081,519 |
|
13,508,711 |
|
16,419,650 |
|
28,941,518 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Voyage expenses |
399,446 |
|
580,496 |
|
515,563 |
|
895,049 |
|
Vessel operating expenses |
4,998,211 |
|
8,482,050 |
|
9,788,134 |
|
16,530,150 |
|
Drydocking expenses |
180,853 |
|
362,783 |
|
773,326 |
|
376,369 |
|
Vessel depreciation |
798,712 |
|
1,659,641 |
|
1,597,424 |
|
3,386,726 |
|
Related party management fees |
770,847 |
|
1,313,546 |
|
1,547,139 |
|
2,642,368 |
|
Other operating income |
- |
|
(2,688,194 |
) |
- |
|
(2,688,194 |
) |
General and administrative expenses |
660,328 |
|
785,890 |
|
1,255,751 |
|
1,588,266 |
|
Loss on write down of vessel held for sale |
- |
|
121,165 |
|
- |
|
121,165 |
|
Total operating expenses |
7,808,397 |
|
10,617,377 |
|
15,477,337 |
|
22,851,899 |
|
|
|
|
|
|
Operating income |
273,122 |
|
2,891,334 |
|
942,313 |
|
6,089,619 |
|
|
|
|
|
|
Other income/(expenses) |
|
|
|
|
Interest and other financing costs |
(751,329 |
) |
(1,137,609 |
) |
(1,461,978 |
) |
(2,389,021 |
) |
Loss on debt extinguishment |
(328,291 |
) |
- |
|
(328,291 |
) |
- |
|
Loss on derivatives, net |
(91 |
) |
(468,146 |
) |
(2,885 |
) |
(468,146 |
) |
Foreign exchange gain / (loss) |
2,684 |
|
555 |
|
(850 |
) |
2,183 |
|
Interest income |
54,322 |
|
4,185 |
|
86,076 |
|
12,780 |
|
Other expenses, net |
(1,022,705 |
) |
(1,601,015 |
) |
(1,707,928 |
) |
(2,842,204 |
) |
Net (loss) / income |
(749,583 |
) |
1,290,319 |
|
(765,615 |
) |
3,247,415 |
|
Dividend Series B Preferred shares |
(478,038 |
) |
(179,507 |
) |
(949,152 |
) |
(339,069 |
) |
Preferred deemed dividend |
(504,577 |
) |
- |
|
(504,577 |
) |
- |
|
Net (loss) / income attributable to common
shareholders |
(1,732,198 |
) |
1,110,812 |
|
(2,219,344 |
) |
2,908,346 |
|
Weighted average number of shares, basic and diluted |
1,542,508 |
|
5,576,960 |
|
1,542,508 |
|
5,576,960 |
|
(Loss) / earnings per share, basic and diluted |
(1.12 |
) |
0.20 |
|
(1.44 |
) |
0.52 |
|
|
|
|
|
|
|
|
|
|
Euroseas Ltd. Unaudited
Consolidated Condensed Balance Sheets(All amounts
expressed in U.S. Dollars – except number of shares)
|
December 31, 2019 |
|
June 30,2020 |
|
|
|
|
|
|
ASSETS |
(unaudited) |
Current
Assets: |
|
|
Cash and cash equivalents |
985,418 |
|
1,338,375 |
|
Trade accounts receivable, net |
715,097 |
|
1,024,974 |
|
Other receivables |
1,570,506 |
|
2,836,563 |
|
Inventories |
1,889,164 |
|
1,805,700 |
|
Restricted cash |
610,376 |
|
432,468 |
|
Prepaid expenses |
526,531 |
|
432,555 |
|
Vessels held for sale |
- |
|
7,050,208 |
|
Total current
assets |
6,297,092 |
|
14,920,843 |
|
|
|
|
Fixed
assets: |
|
|
Vessels, net |
116,230,333 |
|
105,873,785 |
|
Long-term
assets: |
|
|
Restricted cash |
4,334,267 |
|
2,134,267 |
|
Total
assets |
126,861,692 |
|
122,928,895 |
|
|
|
|
LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities: |
|
|
Long-term bank loans, current portion |
12,295,320 |
|
13,204,586 |
|
Related party loan, current |
5,000,000 |
|
4,375,000 |
|
Trade accounts payable |
3,899,967 |
|
2,707,519 |
|
Accrued expenses |
1,725,321 |
|
1,584,461 |
|
Accrued preferred dividends |
161,315 |
|
- |
|
Liability associated with asset held for sale |
- |
|
540,783 |
|
Deferred revenue |
973,774 |
|
652,445 |
|
Derivatives |
- |
|
104,033 |
|
Due to related company |
795,562 |
|
1,531,239 |
|
Total current
liabilities |
24,851,259 |
|
24,700,066 |
|
|
|
|
Long-term
liabilities: |
|
|
Long-term bank loans, net of current portion |
72,187,785 |
|
66,105,386 |
|
Derivatives |
- |
|
364,113 |
|
Fair value of below market time charters acquired |
1,714,370 |
|
553,531 |
|
Total long-term
liabilities |
73,902,155 |
|
67,023,030 |
|
Total
liabilities |
98,753,414 |
|
91,723,096 |
|
|
|
|
Mezzanine
equity: |
|
|
Series B Preferred shares (par value $0.01, 20,000,000 shares
authorized, 8,000 and 8,180 issued and outstanding,
respectively) |
7,654,577 |
|
7,834,084 |
|
Shareholders'
equity: |
|
|
Common stock (par value $0.03, 200,000,000 shares authorized,
5,600,259 issued and outstanding) |
168,008 |
|
168,008 |
|
Additional paid-in capital |
253,967,708 |
|
253,977,376 |
|
Accumulated deficit |
(233,682,015 |
) |
(230,773,669 |
) |
Total shareholders'
equity |
20,453,701 |
|
23,371,715 |
|
Total liabilities,
mezzanine equity and shareholders' equity |
126,861,692 |
|
122,928,895 |
|
|
|
|
|
|
Euroseas Ltd.Unaudited
Consolidated Condensed Statements of Cash
Flows (All amounts expressed in U.S.
Dollars)
|
Six MonthsEnded June 30, |
|
Six MonthsEnded June 30, |
|
2019 |
|
2020 |
|
|
|
|
Cash flows from operating
activities: |
|
Net (loss) / income |
(765,615 |
) |
3,247,415 |
|
Adjustments to reconcile net
(loss) / income to net cash provided by operating activities: |
|
|
Vessel depreciation |
1,597,424 |
|
3,386,726 |
|
Amortization of deferred
charges |
118,032 |
|
122,787 |
|
Share-based compensation |
49,565 |
|
60,808 |
|
Unrealized (gain)/loss on
derivatives |
(41,435 |
) |
468,146 |
|
Amortization of fair value of
below market time charters acquired |
- |
|
(1,160,839 |
) |
Loss on write down of vessel held
for sale |
- |
|
121,165 |
|
Amortization of debt
discount |
95,214 |
|
- |
|
Loss on debt extinguishment |
328,291 |
|
- |
|
Changes in operating assets and liabilities |
(557,092 |
) |
(2,273,177 |
) |
Net cash provided by operating
activities |
824,384 |
|
3,973,031 |
|
|
|
|
Cash flows from investing
activities: |
|
|
Cash paid for vessel
improvements |
- |
|
(256,482 |
) |
Advance received for vessel held
for sale |
- |
|
540,783 |
|
Net cash provided by investing
activities |
- |
|
284,301 |
|
|
|
|
Cash flows from financing
activities: |
|
|
Redemption of Series B preferred
shares |
(11,686,000 |
) |
- |
|
Loan arrangement fees paid |
(120,000 |
) |
- |
|
Preferred dividends paid |
- |
|
(320,877 |
) |
Proceeds from long- term bank
loans |
12,000,000 |
|
- |
|
Repayment of long-term bank loans
and vessel profit participation liability |
(10,241,000 |
) |
(5,295,920 |
) |
Repayment of related party
loan |
|
(625,000 |
) |
Offering expenses paid |
|
(40,486 |
) |
Net cash used in financing
activities |
(10,047,000 |
) |
(6,282,283 |
) |
|
|
|
Net decrease in cash, cash
equivalents and restricted cash |
(9,222,616 |
) |
(2,024,951 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
13,211,588 |
|
5,930,061 |
|
Cash, cash equivalents and restricted cash at end of
period |
3,988,972 |
|
3,905,110 |
|
|
|
|
|
|
Cash breakdown
Cash and cash equivalents |
2,000,437 |
|
1,338,375 |
|
Restricted cash, current |
454,268 |
|
432,468 |
|
Restricted cash, long term |
1,534,267 |
|
2,134,267 |
|
Total cash, cash
equivalents and restricted cash shown in the statement of cash
flows |
3,988,972 |
|
3,905,110 |
|
|
|
|
|
|
Euroseas Ltd.
Reconciliation of to Net (loss) / income to Adjusted
EBITDA(All amounts expressed in U.S.
Dollars)
|
Three Months EndedJune 30,
2019 |
Three Months EndedJune 30,
2020 |
Six Months EndedJune 30,
2019 |
Six Months EndedJune 30,
2020 |
Net (loss) / income |
(749,583 |
) |
1,290,319 |
|
(765,615 |
) |
3,247,415 |
|
Interest and other financing costs, net (incl. interest
income) |
1,529,875 |
|
1,133,424 |
|
2,208,770 |
|
2,376,241 |
|
Vessel depreciation |
798,712 |
|
1,659,641 |
|
1,597,424 |
|
3,386,726 |
|
(Gain) / loss on interest rate swap derivatives, net |
(22,681 |
) |
468,146 |
|
(41,435 |
) |
468,146 |
|
Amortization of below market time charters acquired |
- |
|
(314,434 |
) |
- |
|
(1,160,839 |
) |
Loss on write down of vessel held for sale |
|
121,165 |
|
|
121,165 |
|
Adjusted EBITDA |
1,556,323 |
|
4,358,261 |
|
2,999,144 |
|
8,438,854 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation:Euroseas Ltd. considers Adjusted EBITDA to
represent net (loss) / income before interest, income taxes,
depreciation, (gain) / loss on interest rate swaps, amortization of
below market time charters acquired, and loss on write down of
vessel held for sale. Adjusted EBITDA does not represent and should
not be considered as an alternative to net (loss)/income, as
determined by United States generally accepted accounting
principles, or GAAP. Adjusted EBITDA is included herein because it
is a basis upon which the Company assesses its financial
performance and liquidity position and because the Company believes
that this non- GAAP financial measure assists our management and
investors by increasing the comparability of our performance from
period to period by excluding the potentially disparate effects
between periods, of financial costs, (gain)/ loss on interest rate
swaps, depreciation, amortization of below market time charters
acquired, and loss on write down of vessel held for sale. 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 (loss) / income to Adjusted net
(loss) / income(All amounts expressed in U.S.
Dollars – except share data and number of shares)
|
Three Months
EndedJune 30, 2019 |
Three Months
EndedJune 30, 2020 |
Six Months
EndedJune 30, 2019 |
Six Months EndedJune 30,
2020 |
Net (loss) / income |
(749,583 |
) |
1,290,319 |
|
(765,615 |
) |
3,247,415 |
|
Unrealized (gain)/loss on derivatives |
(22,681 |
) |
468,146 |
|
(41,435 |
) |
468,146 |
|
Amortization of below market time charters acquired |
- |
|
(314,434 |
) |
- |
|
(1,160,839 |
) |
Loss on write down of vessel held for sale |
- |
|
121,165 |
|
- |
|
121,165 |
|
Adjusted net (loss) / income |
(772,264 |
) |
1,565,196 |
|
(807,050 |
) |
2,675,887 |
|
Preferred dividends |
(478,038 |
) |
(179,507 |
) |
(949,152 |
) |
(339,069 |
) |
Preferred deemed dividend |
(504,577 |
) |
- |
|
(504,577 |
) |
- |
|
Adjusted net (loss) / income attributable to common
shareholders |
(1,754,879 |
) |
1,385,689 |
|
(2,260,779 |
) |
2,336,818 |
|
Adjusted (loss) / earnings per share, basic and diluted |
(1.14 |
) |
0.25 |
|
(1.47 |
) |
0.42 |
|
Weighted average number of shares, basic and diluted |
1,542,508 |
|
5,576,960 |
|
1,542,508 |
|
5,576,960 |
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss) / income and
Adjusted (loss) / earnings per share
Reconciliation:Euroseas Ltd. considers Adjusted net (loss)
/ income to represent net (loss) / income before unrealized gain /
loss on derivatives and amortization of below market time charters
acquired. Adjusted net (loss) / income and Adjusted (loss) /
earnings per share is included herein because we believe it assists
our management and investors by increasing the comparability of the
Company's fundamental performance from period to period by
excluding the potentially disparate effects between periods of
unrealized gain / loss on derivatives and amortization of below
market time charters acquired, which items may significantly affect
results of operations between periods. Adjusted net (loss) /
income and Adjusted (loss) / earnings per share do not represent
and should not be considered as an alternative to net (loss) /
income or (loss) / earnings per share, as determined by GAAP. The
Company's definition of Adjusted net (loss) / income and Adjusted
(loss) / earnings per share may not be the same as that used by
other companies in the shipping or other industries.
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 140 years. Euroseas trades on the NASDAQ
Capital Market under the ticker ESEA. Euroseas operates in
the container shipping market. Euroseas' operations are managed by
Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 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
11 Feeder containerships and 5 Intermediate Containerships.
Euroseas 16 containerships have a cargo capacity of 45,956 teu.
Forward Looking StatementThis
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 containerships, 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
|
|
Company
Contact |
Investor Relations /
Financial Media |
Tasos AslidisChief Financial
OfficerEuroseas Ltd.11 Canterbury Lane,Watchung, NJ 07069Tel. (908)
301-9091E-mail: aha@euroseas.gr |
Nicolas BornozisPresidentCapital
Link, Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661-7566E-mail: nbornozis@capitallink.com |
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