EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner
and operator of drybulk vessels and provider of seaborne
transportation for drybulk cargoes, announced today its results for
the three and nine-month periods ended September 30, 2022.
Third Quarter 2022
Highlights:
- Total net revenues for the quarter
of $15.8 million.
- Net income attributable to common
shareholders of $6.2 million or $2.11 and $2.10 earnings per share
basic and diluted, respectively.
- Adjusted net income attributable to
common shareholders1 for the quarter of $5.7 million, or, $1.94 and
$1.93 per share basic and diluted, respectively.
- Adjusted EBITDA1 was $9.5
million.
- An average of 11.0 vessels were
owned and operated during the third quarter of 2022 earning an
average time charter equivalent rate of $20,637 per day.
- On September 19, 2022 we announced
the sale of M/V Pantelis, a 74,020 dwt drybulk vessel, built in
2000, for approximately $9.7 million. The vessel was delivered to
her new owners, an unaffiliated party, on October 17, 2022.
- As of November 9, 2022 we had
repurchased 108,963 shares of our common stock in the open market
for $1.5 million, under our share repurchase plan of up to $10
million, announced in August 2022.
Nine Months 2022
Highlights:
- Total net revenues of $55.1
million.
- Net income attributable to common
shareholders was $27.3 million, or $9.43 and $9.34 earnings per
share basic and diluted, respectively.
- Adjusted net income attributable to
common shareholders1 for the period was $25.1 million or $8.69 and
$8.60 adjusted earnings per share basic and diluted, respectively,
before unrealized gain on derivatives.
- Adjusted EBITDA1 was $35.9
million.
- An average of 10.5 vessels were
owned and operated during the first nine months of 2022 earning an
average time charter equivalent rate of $22,876 per day.
Aristides Pittas, Chairman and CEO of
EuroDry commented: “During the third
quarter of 2022, average time charter rates for the sizes of
vessels we own dropped on average by 35-50% compared to the second
quarter of 2022 with Supramax and Ultramax spot earnings dropping a
bit less. Since the end of the third quarter, time charter rates
slid down by another 5% to 12%, while average spot earnings
improved. We believe that these developments were the result of,
first, lower shipping demand due to the economic slowdown across
the globe because of energy supply uncertainty from the
Ukraine-Russia war and the increasing interest rates to combat
rising inflation, and secondly, receding port-related delays which
increased vessel availability and put downward pressure
on rates.
“Despite the rate drop, rates remain at
profitable levels and, certainly, above the average rate level
observed during the decade before the COVID pandemic started. While
the economic uncertainty might continue over the next six months or
so, the underlying market fundamentals will be dominated by the
historically low level of drybulk orderbook which should result in
tight vessel supply conditions over the next two to three years
providing support to the charter rates. Additionally, the
implementation of the greenhouse gas emission regulations starting
in 2023 is expected to further reduce the effective supply of
vessels contributing to the tightness of the market.
“Thus, we remain optimistic about the prospects
of the market. We believe we are well positioned to exploit
opportunities to expand and renew our fleet utilizing the liquidity
we have built over the last two years including proceeds from
selected sales of vessels like the sale of our 22-year old vessel
M/V Pantelis. At the same time we intend to continue our share
repurchase program announced last August which not only represents
an attractive investment opportunity but also enhances the value of
our stock and benefits all our shareholders.”
Tasos Aslidis, Chief Financial Officer
of EuroDry commented: “Comparing our results for the third
quarter of 2022 with the same period of 2021, our net revenues
decreased by about $3.6 million, due to the lower time charter
equivalent rates our vessels earned as compared to the third
quarter of 2021 and the increased scheduled off-hire days for the
third quarter of 2022, when our vessels did not earn revenues,
compared to the same period of 2021. Operating expenses, including
management fees and general and administrative expenses increased
from $6,495 per vessel per day in the third quarter of 2021 to
$6,593 in the third quarter of 2022. This increase is mainly due to
the higher prices paid for the supply of lubricants, spare parts
and stores for our vessels compared to the same period of 2021, as
a result of the war in Ukraine.
Adjusted EBITDA during the third quarter of 2022
was $9.5 million compared to $13.0 million achieved for the third
quarter of last year. As of September 30, 2022, our outstanding
debt (excluding the unamortized loan fees) was $88.0 million while
unrestricted and restricted cash was $32.4 million. As of the same
date, our scheduled debt repayments including balloon payments over
the next 12 months amounted to about $26.8 million (excluding the
unamortized loan fees) and all our loan covenants are
satisfied.”
Third Quarter 2022 Results:
For the third quarter of 2022, the Company
reported total net revenues of $15.8 million representing a 18.7%
decrease over total net revenues of $19.5 million during the third
quarter of 2021 which was primarily the result of the lower time
charter rates our vessels earned in the third quarter of 2022
compared to the corresponding period of 2021 and the increased
scheduled off-hire days of the third quarter of 2022, when our
vessels did not earn revenues. The Company reported a net income
and net income attributable to common shareholders for the period
of $6.2 million, as compared to a net income of $12.1 million and a
net income attributable to common shareholders of $11.8 million for
the same period of 2021.
For the third quarter of 2022, a gain on bunkers
resulted in positive voyage expenses, of $2.0 million, as compared
to positive voyage expenses of $0.1 million for the same period of
2021. Vessel operating expenses were $5.2 million for the third
quarter of 2022 as compared to $3.7 million for the same period of
2021. The increase is attributable to the increased number of
vessels operating in the third quarter of 2022 compared to the
corresponding period in 2021, as well as the higher prices paid for
the supply of lubricants, spare parts and stores for our vessels
compared to the same period of 2021, as a result of the war in
Ukraine. Depreciation expense for the third quarter of 2022
amounted to $2.9 million, as compared to $2.0 million for the same
period of 2021. This increase is due to the higher number of
vessels operating in the third quarter of 2022 as compared to the
same period of 2021. General and administrative expenses increased
to $0.7 million in the third quarter of 2022, as compared to $0.6
million in the third quarter of 2021. This increase is mainly
attributable to the increased cost of our stock incentive plan.
During the third quarter of 2022, two of our vessels completed
their special survey with drydocking and one of our vessels was
drydocked within the quarter in order to pass her special survey,
which was completed in the fourth quarter of 2022. The total
drydocking cost for the quarter was $2.7 million, while there were
no vessels undergoing drydocking during the third quarter of
2021.
Interest and other financing costs for the third
quarter of 2022 amounted to $1.0 million compared to $0.6 million
for the same period of 2021. Interest expense during the third
quarter of 2022 was higher mainly due to the increased amount of
debt and the increased Libor rates of our loans during the period
as compared to the same period of last year. For the three months
ended September 30, 2021, the Company recognized an unrealized gain
of $1.0 million and a marginal realized loss on five interest rate
swap contracts and a gain of $0.6 million on forward freight
agreement (“FFA”) contracts entered into during the second quarter
of 2022 and settled during the third quarter of 2022, comprising a
realized gain of $1.1 million and a change in fair value of FFA
contracts of $0.5 million, as compared to a marginal loss on three
interest rate swap contracts and a $0.1 million loss on FFA
contracts, comprising an unrealized gain of $1.6 million and a
realized loss of $1.7 million during the third quarter of 2021.
On average, 11.0 vessels were owned and operated
during the third quarter of 2022 earning an average time charter
equivalent rate of $20,637 per day compared to 8.1 vessels in the
same period of 2021 earning on average $28,103 per day.
Adjusted EBITDA for the third quarter of 2022
was $9.5 million compared to $13.0 million achieved during the
third quarter of 2021.
Basic and diluted earnings per share
attributable to common shareholders for the third quarter of 2022
were $2.11 basic and $2.10 diluted calculated on 2,925,799 basic
and 2,930,909 diluted weighted average number of shares
outstanding, compared to $4.47 basic and $4,41 diluted calculated
on 2,634,822 basic and 2,675,224 diluted weighted average number of
shares outstanding for the third quarter of 2021.
Excluding the effect on the earnings
attributable to common shareholders for the quarter of the
unrealized gain derivatives, the adjusted earnings attributable to
common shareholders for the quarter ended September 30, 2022 would
have been $1.94 and $1.93 per share basic and diluted,
respectively, compared to adjusted earnings of $3.84 and $3.79 per
share basic and diluted, respectively, for the quarter ended
September 30, 2021. Usually, security analysts do not include the
above item in their published estimates of earnings per share.
First Nine Months 2022 Results:
For the first nine months of 2022, the Company
reported total net revenues of $55.1 million representing a 30.7%
increase over total net revenues of $42.1 million during the first
nine months of 2021, which was mainly the result of the increased
number of vessels operated and the slightly higher time charter
rates our vessels earned during the period of 2022 compared to the
same period of 2021. The Company reported a net income and net
income attributable to common shareholders for the period of $27.3
million, as compared to a net income of $15.1 million and a net
income attributable to common shareholders of $14.2 million, for
the nine-month period of 2021.
For the nine months of 2022, a gain on bunkers
resulted in positive voyage expenses of $2.9 million, as compared
to positive voyage expenses of $0.5 million in the same period of
2021. Vessel operating expenses were $14.4 million for the nine
months of 2022 as compared to $9.9 million for the same period of
2021. The increase is attributable to the increased number of
vessels operating in the first nine months of 2022 compared to the
corresponding period in 2021, as well as the higher prices paid for
the supply of lubricants, spare parts and stores for our vessels
compared to the same period of 2021, as a result of the war in
Ukraine. Depreciation expense for the first nine months of 2022
were $8.2 million compared to $5.4 million during the same period
of 2021, mainly due to the higher number of vessels operating in
the same period. On average, 10.5 vessels were owned and operated
during the first nine months of 2022 earning an average time
charter equivalent rate of $22,876 per day compared to 7.5 vessels
in the same period of 2021 earning on average $22,232 per day.
General and administrative expenses increased to $2.1 million
during the first nine months of 2022 as compared to $1.7 million in
the same period of last year. This increase is mainly attributable
to the increased cost of our stock incentive plan. In the first
nine months of 2022, four vessels underwent special survey, one
vessel passed her intermediate survey in water (in lieu of drydock)
and one of our vessels was drydocked within the quarter in order to
pass her special survey, which was completed in the fourth quarter
of 2022. The total drydocking cost for the period was $4.4 million,
while there were no vessels undergoing drydocking during the first
nine months of 2021.
Interest and other financing costs for the first
nine months of 2022 amounted to $2.4 million compared to $1.7
million for the same period of 2021. Interest expense during for
the period was higher due to the increased amount of debt and the
increased Libor rates of our loans during the period as compared to
the same period of last year. For the nine months ended September
30, 2022, the Company recognized a $2.2 million unrealized gain and
a $0.2 million realized loss on five interest rate swaps and a $1.1
million realized gain on FFA contracts entered into during the
second quarter of 2022 and settled during the third quarter of 2022
as compared to a $0.1 million gain on three interest rate swaps and
a $2.5 million unrealized loss and $3.0 million realized loss on
FFA contracts.
Adjusted EBITDA for the nine months of 2022 was
$35.9 million compared to $26.3 million achieved during the first
nine months of 2021.
Basic and diluted earnings per share
attributable to common shareholders for the first nine months of
2022 was $9.43, calculated on 2,890,771 basic and $9.34, calculated
on 2,918,800 diluted weighted average number of shares outstanding,
compared to basic and diluted earnings per share attributable to
common shareholders of $5.84, calculated on 2,427,810 basic and
$5.74, calculated on 2,470,726 diluted weighted average number of
shares outstanding, for the same period of 2021.
Excluding the effect of the change in the fair
value of derivatives on the earnings attributable to common
shareholders for the first nine months of the year, the adjusted
earnings attributable to common shareholders for the nine-month
period ended September 30, 2022 would have been $8.69 and $8.60 per
share basic and diluted, respectively, compared to adjusted
earnings per share of $7.42 basic and $7.29 diluted for the same
period in 2021. As previously mentioned, usually, security analysts
do not include the above item in their published estimates of
earnings per share. Fleet Profile:
The EuroDry Ltd. fleet profile is as follows:
Name |
Type |
Dwt |
Year Built |
Employment(*) |
TCE Rate ($/day) |
Dry Bulk Vessels |
|
|
|
|
|
EKATERINI |
Kamsarmax |
82,000 |
2018 |
TC until Feb-23 |
Hire 105% of the Average Baltic Kamsarmax P5TC index (**) |
XENIA |
Kamsarmax |
82,000 |
2016 |
TC until Mar-24 |
Hire 105% of the Average Baltic Kamsarmax P5TC index(**) |
ALEXANDROS P. |
Ultramax |
63,500 |
2017 |
TC until Jan-23 |
$11,500 for the first 65 days, then $16,000 |
GOOD HEART |
Ultramax |
62,996 |
2014 |
TC until Nov-22 |
$18,000-25,000(***) |
MOLYVOS LUCK |
Supramax |
57,924 |
2014 |
TC until Mar-23 |
$25,750 |
EIRINI P |
Panamax |
76,466 |
2004 |
TC until Dec-22 |
$15,500 |
SANTA CRUZ |
Panamax |
76,440 |
2005 |
TC until Nov-22 |
$14,000 |
STARLIGHT |
Panamax |
75,845 |
2004 |
TC until Nov-22 |
$18,500 |
TASOS |
Panamax |
75,100 |
2000 |
TC until Dec-22 |
$21,000 |
BLESSED LUCK |
Panamax |
76,704 |
2004 |
TC until Nov-22 |
$15,000 |
Total Dry Bulk Vessels |
10 |
728,975 |
|
|
|
Note:
(*) |
Represents the
earliest redelivery date |
(**) |
The average Baltic Kamsarmax P5TC Index is an index based on
five Panamax time charter routes. |
(***) |
The time charter equivalent rate depends on the final duration
of the charter period to which the initial ballast and waiting will
be allocated. |
Summary Fleet Data:
|
3 months, ended September 30,
2021 |
3 months, ended September 30,
2022 |
9 months, ended September 30,
2021 |
9 months, ended September 30,
2022 |
FLEET DATA |
|
|
|
|
Average number of vessels (1) |
8.1 |
|
11.0 |
|
7.5 |
|
10.5 |
|
Calendar days for fleet (2) |
745.0 |
|
1,012.0 |
|
2,045.9 |
|
2,853.0 |
|
Scheduled off-hire days incl. laid-up (3) |
0.0 |
|
92.1 |
|
0.0 |
|
141.8 |
|
Available days for fleet (4) = (2) - (3) |
745.0 |
|
919.9 |
|
2,045.9 |
|
2,711.2 |
|
Commercial off-hire days (5) |
0.0 |
|
0.0 |
|
0.0 |
|
6.1 |
|
Operational off-hire days (6) |
4.3 |
|
10.3 |
|
8.1 |
|
23.0 |
|
Voyage days for fleet (7) = (4) - (5) - (6) |
740.7 |
|
909.6 |
|
2,037.8 |
|
2,682.1 |
|
Fleet utilization (8) = (7) / (4) |
99.4 |
% |
98.9 |
% |
99.6 |
% |
98.9 |
% |
Fleet utilization, commercial (9) = ((4) - (5)) / (4) |
100.0 |
% |
100.0 |
% |
100.0 |
% |
99.8 |
% |
Fleet utilization, operational (10) = ((4) - (6)) / (4) |
99.4 |
% |
98.9 |
% |
99.6 |
% |
99.2 |
% |
|
|
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
Time charter equivalent rate (11) |
28,103 |
|
20,637 |
|
22,232 |
|
22,876 |
|
Vessel operating expenses excl. drydocking expenses (12) |
5,718 |
|
5,893 |
|
5,664 |
|
5,837 |
|
General and administrative expenses (13) |
777 |
|
700 |
|
846 |
|
750 |
|
Total vessel operating expenses (14) |
6,495 |
|
6,593 |
|
6,510 |
|
6,587 |
|
Drydocking expenses (15) |
53 |
|
2,696 |
|
47 |
|
1,547 |
|
(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 are days associated with
scheduled repairs, drydockings or special or intermediate surveys
or days of vessels in lay-up.
(4) Available days.
We define available days as the total number of Calendar days in a
period net of scheduled off-hire days incl. 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, is a measure of the average daily net
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 include crew costs, provisions, deck and
engine stores, lubricating oil, insurance, maintenance and repairs
and related party management fees are calculated by dividing vessel
operating expenses and related party management fees 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 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, related party management fees and general and
administrative expenses; drydocking expenses are not included.
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:Tomorrow, November 11, 2022 at 9:00 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: 877 405 1226
(US Toll-Free Dial In) or +1 201 689 7823 (US and Standard
International Dial In). Please quote “EuroDry” to the operator
and/or conference ID 13734389. Click here for additional
participant International Toll-Free access numbers.
Alternatively, participants can register for the
call using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option
Audio webcast - Slides
Presentation:There will be a live and then archived audio
webcast of the conference call, via the internet through the
EuroDry website (www.eurodry.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 Third Quarter
2022 results in PDF format will also be available 10 minutes prior
to the conference call and webcast accessible on the company's
website (www.eurodry.gr) on the webcast page. Participants to the
webcast can download the PDF presentation.
EuroDry Ltd. Unaudited
Consolidated Condensed Statements of
Operations(All amounts expressed in U.S. Dollars –
except number of shares)
|
Three Months Ended September
30, |
Three Months Ended September
30, |
Nine Months Ended September
30, |
Nine Months Ended September
30, |
|
2021 |
2022 |
2021 |
2022 |
|
(unaudited) |
(unaudited) |
Revenues |
|
|
|
|
Time charter revenue |
20,718,567 |
|
16,799,698 |
|
44,764,161 |
|
58,488,275 |
|
Commissions |
(1,262,785 |
) |
(985,625 |
) |
(2,642,473 |
) |
(3,421,825 |
) |
Net revenues |
19,455,782 |
|
15,814,073 |
|
42,121,688 |
|
55,066,450 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Voyage expenses, net |
(97,247 |
) |
(1,971,407 |
) |
(540,322 |
) |
(2,866,697 |
) |
Vessel operating expenses |
3,651,301 |
|
5,209,256 |
|
9,893,244 |
|
14,434,414 |
|
Drydocking expenses |
39,771 |
|
2,728,266 |
|
96,945 |
|
4,414,251 |
|
Vessel depreciation |
1,983,108 |
|
2,857,258 |
|
5,395,583 |
|
8,182,892 |
|
Related party management fees |
608,948 |
|
754,117 |
|
1,694,773 |
|
2,218,181 |
|
General and administrative expenses |
578,784 |
|
707,993 |
|
1,729,935 |
|
2,140,229 |
|
Total Operating expenses |
(6,764,665 |
) |
(10,285,483 |
) |
(18,270,158 |
) |
(28,523,270 |
) |
|
|
|
|
|
Operating income |
12,691,117 |
|
5,528,590 |
|
23,851,530 |
|
26,543,180 |
|
|
|
|
|
|
Other income / (expenses) |
|
|
|
|
Interest and other financing costs |
(555,801 |
) |
(965,917 |
) |
(1,676,973 |
) |
(2,371,540 |
) |
Loss on debt extinguishment |
- |
|
- |
|
(1,647,654 |
) |
- |
|
(Loss) / gain on derivatives, net |
(75,585 |
) |
1,573,803 |
|
(5,389,990 |
) |
3,049,602 |
|
Foreign exchange gain / (loss) |
4,269 |
|
24,050 |
|
(643 |
) |
51,427 |
|
Interest income |
54 |
|
1,231 |
|
10,463 |
|
1,616 |
|
Other (expenses) / income, net |
(627,063 |
) |
633,167 |
|
(8,704,797 |
) |
731,105 |
|
Net income |
12,064,054 |
|
6,161,757 |
|
15,146,733 |
|
27,274,285 |
|
Dividend Series B Preferred shares |
(274,337 |
) |
- |
|
(845,262 |
) |
- |
|
Preferred deemed dividend |
- |
|
- |
|
(120,000 |
) |
- |
|
Net income attributable to common
shareholders |
11,789,717 |
|
6,161,757 |
|
14,181,471 |
|
27,274,285 |
|
Earnings per share, basic |
4.47 |
|
2.11 |
|
5.84 |
|
9.43 |
|
Weighted average number of shares, basic |
2,634,822 |
|
2,925,799 |
|
2,427,810 |
|
2,890,771 |
|
Earnings per share, diluted |
4.41 |
|
2.10 |
|
5.74 |
|
9.34 |
|
Weighted average number of shares, diluted |
2,675,224 |
|
2,930,909 |
|
2,470,726 |
|
2,918,800 |
|
EuroDry Ltd.Unaudited
Consolidated Condensed Balance Sheets(All amounts
expressed in U.S. Dollars – except number of shares)
|
December 31,2021 |
September 30, 2022 |
|
|
|
|
|
ASSETS |
|
|
Current
Assets: |
|
|
|
Cash and cash equivalents |
26,847,426 |
29,546,558 |
|
Trade accounts receivable, net |
775,035 |
5,587,183 |
|
Other receivables |
1,242,803 |
456,902 |
|
Inventories |
770,342 |
2,820,770 |
|
Restricted cash |
459,940 |
997,756 |
|
Asset held for sale |
- |
6,617,715 |
|
Derivatives |
- |
830,199 |
|
Prepaid expenses |
314,397 |
286,688 |
|
Total current
assets |
30,409,943 |
47,143,771 |
|
|
|
|
|
Fixed
assets: |
|
|
|
Vessels, net |
128,492,819 |
151,562,305 |
|
Long-term
assets: |
|
|
|
Derivatives |
210,113 |
1,255,009 |
|
Restricted cash |
2,220,000 |
1,885,000 |
|
Total assets |
161,332,875 |
201,846,085 |
|
|
|
|
|
LIABILITIES, AND
SHAREHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Long term bank loans, current portion |
13,949,720 |
26,588,217 |
|
Trade accounts payable |
855,825 |
2,013,026 |
|
Accrued expenses |
852,442 |
3,020,332 |
|
Derivatives |
289,430 |
- |
|
Deferred revenue |
1,514,543 |
1,402,665 |
|
Due to related companies |
244,587 |
154,848 |
|
Total current
liabilities |
17,706,547 |
33,179,088 |
|
|
|
|
|
Long-term
liabilities: |
|
|
|
Long term bank loans, net of current portion |
64,702,947 |
60,702,155 |
|
Total long-term
liabilities |
64,702,947 |
60,702,155 |
|
Total
liabilities |
82,409,494 |
93,881,243 |
|
|
|
|
|
Shareholders'
equity: |
|
|
|
Common stock (par value $0.01, 200,000,000 shares authorized,
2,919,191 and 2,877,500 issued and outstanding, respectively) |
29,192 |
28,775 |
|
Additional paid-in capital |
67,963,707 |
69,731,300 |
|
Retained earnings |
10,930,482 |
38,204,767 |
|
Total shareholders' equity |
78,923,381 |
107,964,842 |
|
Total liabilities and shareholders' equity |
161,332,875 |
201,846,085 |
|
|
|
|
|
EuroDry Ltd.Unaudited
Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)
|
Nine Months Ended September 30, |
Nine Months Ended September 30, |
2021 |
2022 |
Cash flows from
operating activities: |
|
Net income |
15,146,733 |
|
27,274,285 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
Vessel depreciation |
5,395,583 |
|
8,182,892 |
|
Amortization of deferred
charges |
250,766 |
|
142,705 |
|
Share-based compensation |
132,636 |
|
551,096 |
|
Unrealized loss / (gain) on
derivatives |
2,189,391 |
|
(2,164,525 |
) |
Loss on debt
extinguishment |
1,647,654 |
|
- |
|
Changes
in operating assets and liabilities |
(847,045 |
) |
(3,022,066 |
) |
Net cash provided by operating activities |
23,915,718 |
|
30,964,387 |
|
|
|
|
Cash flows from
investing activities: |
|
|
Cash paid for vessel
acquisitions |
(31,637,347 |
) |
(36,968,389 |
) |
Cash paid for vessels
capitalized expenses |
(37,891 |
) |
(792,703 |
) |
Net cash used in investing activities |
(31,675,238 |
) |
(37,761,092 |
) |
|
|
|
Cash flows from
financing activities: |
|
|
Redemption of Series B
Preferred shares |
(3,000,000 |
) |
- |
|
Proceeds from issuance of
common stock, net of commissions paid |
9,190,013 |
|
2,685,602 |
|
Cash paid for share
repurchase |
- |
|
(1,469,522 |
) |
Offering expenses paid |
- |
|
(12,427 |
) |
Preferred dividends paid |
(570,925 |
) |
- |
|
Loan arrangement fees
paid |
(648,000 |
) |
(150,000 |
) |
Proceeds from related party
loan |
6,000,000 |
|
- |
|
Proceeds from long term bank
loans |
61,700,000 |
|
20,000,000 |
|
Repayment of related party
loan |
(2,700,000 |
) |
- |
|
Repayment of long term bank
loans |
(44,212,000 |
) |
(11,355,000 |
) |
Net cash provided by financing activities |
25,759,088 |
|
9,698,653 |
|
|
|
|
Net increase in cash, cash
equivalents and restricted cash |
17,999,568 |
|
2,901,948 |
|
Cash,
cash equivalents and restricted cash at beginning of period |
4,606,318 |
|
29,527,366 |
|
Cash, cash equivalents and restricted cash at end of
period |
22,605,886 |
|
32,429,314 |
|
Cash Breakdown |
|
|
|
|
Cash and cash equivalents |
17,015,316 |
|
29,546,558 |
|
Restricted cash, current |
3,640,570 |
|
997,756 |
|
Restricted cash, long term |
1,950,000 |
|
1,885,000 |
|
Total cash, cash
equivalents and restricted cash shown in the statement of cash
flows |
22,605,886 |
|
32,429,314 |
|
EuroDry
Ltd.Reconciliation of Net income to Adjusted
EBITDA (All amounts expressed in U.S.
Dollars)
|
Three Months EndedSeptember 30,
2021 |
Three Months EndedSeptember 30,
2022 |
Nine Months EndedSeptember 30,
2021 |
Nine Months EndedSeptember 30,
2022 |
Net income |
12,064,054 |
|
6,161,757 |
|
15,146,733 |
|
27,274,285 |
|
Interest and other financing costs, net (incl. interest income and
loss on debt extinguishment) |
555,747 |
|
964,686 |
|
3,314,164 |
|
2,369,924 |
|
Vessel depreciation |
1,983,108 |
|
2,857,258 |
|
5,395,583 |
|
8,182,892 |
|
Change in fair value of Forward Freight Agreement derivatives |
(1,584,369 |
) |
482,670 |
|
2,546,292 |
|
- |
|
Loss / (gain) on interest rate swap derivatives |
1,115 |
|
(951,633 |
) |
(133,730 |
) |
(1,944,762 |
) |
Adjusted EBITDA |
13,019,655 |
|
9,514,738 |
|
26,269,042 |
|
35,882,339 |
|
Adjusted
EBITDA Reconciliation:EuroDry Ltd. considers Adjusted
EBITDA to represent net income before interest and other financing
costs, income taxes, depreciation, loss on debt extinguishment,
change in fair value of Forward Freight Agreements (“FFAs”) and
loss / (gain) on interest rate swap derivatives. Adjusted EBITDA
does not represent and should not be considered as an alternative
to net 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 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, interest and other financing costs, loss on debt
extinguishment, change in fair value of FFAs, loss / (gain) on
interest rate swap derivatives, and depreciation. The Company's
definition of Adjusted EBITDA may not be the same as that used by
other companies in the shipping or other industries.
EuroDry
Ltd.Reconciliation of Net income to Adjusted net
income (All amounts expressed in U.S. Dollars –
except share data and number of shares)
|
Three Months EndedSeptember 30,
2021 |
Three Months EndedSeptember 30,
2022 |
Nine Months EndedSeptember 30,
2021 |
Nine Months EndedSeptember 30,
2022 |
Net income |
12,064,054 |
|
6,161,757 |
|
15,146,733 |
|
27,274,285 |
|
Unrealized (gain) / loss on derivatives |
(1,659,261 |
) |
(495,377 |
) |
2,189,391 |
|
(2,164,525 |
) |
Loss on debt extinguishment |
- |
|
- |
|
1,647,654 |
|
- |
|
Adjusted net income |
10,404,793 |
|
5,666,380 |
|
18,983,778 |
|
25,109,760 |
|
Preferred dividends |
(274,337 |
) |
- |
|
(845,262 |
) |
|
Preferred deemed dividend |
- |
|
- |
|
(120,000 |
) |
|
Adjusted net income attributable to common
shareholders |
10,130,456 |
|
5,666,380 |
|
18,018,516 |
|
25,109,760 |
|
Adjusted earnings per share, basic |
3.84 |
|
1.94 |
|
7.42 |
|
8.69 |
|
Weighted average number of shares, basic |
2,634,822 |
|
2,925,799 |
|
2,427,810 |
|
2,890,771 |
|
Adjusted earnings per share, diluted |
3.79 |
|
1.93 |
|
7.29 |
|
8.60 |
|
Weighted average number of shares, diluted |
2,675,224 |
|
2,930,909 |
|
2,470,726 |
|
2,918,800 |
|
Adjusted net income and
Adjusted earnings per share Reconciliation:
EuroDry Ltd.
considers Adjusted net income to represent net income before
unrealized (gain)/loss on derivatives, which includes FFAs and
interest rate swaps, and loss on debt extinguishment. Adjusted net
income and Adjusted earnings per share are included herein because
we believe they assist 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 loss
on debt extinguishment, which may significantly affect results of
operations between periods. Adjusted net income and Adjusted
earnings per share do not represent and should not be considered as
an alternative to net income or earnings per share, as determined
by GAAP. The Company's definition of Adjusted net income and
Adjusted earnings per share may not be the same as that used by
other companies in the shipping or other industries.
About EuroDry Ltd.EuroDry Ltd.
was formed on January 8, 2018 under the laws of the Republic of the
Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd
into a separate listed public company. EuroDry was spun-off from
Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital
Market under the ticker EDRY. EuroDry operates in the dry
cargo, drybulk shipping market. EuroDry's operations are managed by
Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified
affiliated ship management company and Eurobulk (Far East) Ltd.
Inc., which are responsible for the day-to-day commercial and
technical management and operations of the vessels. EuroDry employs
its vessels on spot and period charters and under pool
agreements.The Company has a fleet of 10 vessels, including 5
Panamax drybulk carriers, 2 Ultramax drybulk carriers, 2 Kamsarmax
drybulk carriers and 1 Supramax drybulk carrier. EuroDry’s 10
drybulk carriers have a total cargo capacity of 728,975 dwt.
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 dry bulk vessels, 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.eurodry.gr
Company
Contact |
Investor Relations /
Financial Media |
Tasos AslidisChief Financial
OfficerEuroDry Ltd.11 Canterbury Lane,Watchung, NJ07069Tel. (908)
301-9091E-mail: aha@eurodry.gr |
Nicolas BornozisMarkella
KaraCapital Link, Inc.230 Park Avenue, Suite 1540New York,
NY10169Tel. (212) 661-7566E-mail: eurodry@capitallink.com |
1Adjusted EBITDA, Adjusted net income and
Adjusted earnings per share are not recognized measurements under
US GAAP (GAAP) and should not be used in isolation or as a
substitute for EuroDry’s 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.
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