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 month period and full year ended December 31,
2018.
The Spin-offOn May 30, 2018,
the Company spun-off its drybulk fleet (excluding M/V Monica P, a
handymax drybulk carrier, which was agreed to be sold) into EuroDry
Ltd., a separate publicly listed company also listed on Nasdaq
Capital Market. Shareholders of the Company received one EuroDry
Ltd. share for every five shares of the Company they held. As a
result of the spin-off and the subsequent sale of M/V Monica P, the
Company has become a pure containership company and the only
publicly listed company concentrating on the feeder containership
sector.
The results below refer to Euroseas Ltd.
“continuing operations” excluding the contribution from Euroseas
Ltd. of vessels spun-off into EuroDry Ltd. in May 2018
(“discontinued operations”); historical comparative periods have
been adjusted accordingly.
Fourth Quarter 2018
Highlights:
- Total net revenues of $8.0 million.
Net loss of $0.5 million; net loss attributable to common
shareholders (after a $0.2 million dividend on Series B Preferred
Shares) of $0.8 million or $0.07 loss per share basic and
diluted. Adjusted net loss attributable to common
shareholders1 for the period was $0.8 million or
$0.071 per share basic and diluted.
- Adjusted EBITDA1 was $1.2
million.
- An average of 11.0 vessels were
owned and operated during the fourth quarter of 2018 earning an
average time charter equivalent rate of $8,577 per day.
- The Company declared its twentieth
dividend of $0.2 million on its Series B Preferred Shares; the
dividend was paid in-kind by issuing additional Series B Preferred
Shares.
- The Company raised approximately
$1.9 million of proceeds, net of offering expenses, via its
at-the-market offering.
Full Year 2018 Highlights:
- Total net revenues of $34.4
million. Net loss of $0.7 million; net loss attributable to common
shareholders (after a $1.3 million dividend on Series B Preferred
Shares) of $2.0 million or $0.18 loss per share basic and
diluted. Adjusted net loss per share attributable to common
shareholders1 for the year was $3.3 million or $0.291 per share
basic and diluted.
- Adjusted EBITDA1 was
$4.3 million.
- An average of 11.49 vessels were
owned and operated during the twelve months of 2018 earning an
average time charter equivalent rate of $9,179 per day.
1Adjusted EBITDA, Adjusted net loss and Adjusted
loss per share are not recognized measurements under U.S. 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. Aristides Pittas, Chairman and CEO of
Euroseas commented: “During the fourth quarter of 2018 and
early 2019, concerns about global economic growth, tariffs and
trade tensions between the U.S. and China have influenced
containerized trade. The feeder containership markets continued
getting softer while chartering activity remained subdued until
after the Chinese New Year of the beginning of February when we
started seeing some stabilization and slightly more enquiries.
Despite the difficult chartering environment, we have managed to
charter all our vessels even those which were idle for part of the
past quarter. Furthermore, we have increased the Company’s
liquidity through refinancing of some of its debt and raising
additional equity capital via its at-the-market offering at
significantly higher prices than its recent trading range.”
“The containership market is still facing modest
supply growth due to an orderbook-to-fleet ratio at historically
low levels and additional vessel down-time required for installing
required equipment for implementation of emissions and water
ballast treatment regulations. Thus, any solution of the trade wars
issues between the US and primarily China may lead to a recovery of
the containerized trade and translate to higher rates for our
vessels increasing our profitability. Euroseas’ strategy remains
focused on exploiting its position as the only publicly-listed
feeder company either growing organically or pursuing accretive
growth opportunities via mergers or combinations with privately
owned vessels or fleets.”
Tasos Aslidis, Chief Financial Officer
of Euroseas commented: “The operating results of the
fourth quarter of 2018 reflect the downward sliding level of
charter rates in the containership markets. On average, however,
during the fourth quarter of 2018, our vessels earned approximately
6.5% higher time charter equivalent rates compared to the fourth
quarter of 2017.”
“Total daily vessel operating expenses,
including management fees, general and administrative expenses, but
excluding drydocking costs, were about the same during the fourth
quarter of 2018 compared to the same quarter of last year, while
for the full year 2018 they increased by approximately 4.6%.
Adjusted EBITDA during the fourth quarter of 2018 was $1.2 million
versus $1.5 million in the fourth quarter of last year, and it
reached $4.3 million versus $1.9 million for the respective
twelve-month periods of 2018 and 2017.”
“As of December 31, 2018, our outstanding debt
(excluding the unamortized loan fees) and a profit participation
liability on one of our vessels (representing the estimated
amount related to the lender’s entitlement to participate in the
appreciation of the fair value of one of our vessels) were $37.5
million and $1.1 million, respectively, versus restricted and
unrestricted cash net of funds due to related companies of
approximately $10.5 million. The profit participation liability is
shown without taking into account the aggregate operating results
of the vessel which will be included in the final calculation.”
Fourth Quarter 2018 Results:For
the fourth quarter of 2018, the Company reported total net revenues
of $8.0 million representing a 2.9% increase over total net
revenues of $7.8 million during the fourth quarter of 2017. The
Company reported net loss for the period of $0.5 million and a net
loss attributable to common shareholders of $0.8 million, as
compared to a net income of $0.7 million and a net income
attributable to common shareholders of $0.2 million respectively,
for the fourth quarter of 2017. Drydocking expenses amounted to
$0.3 million during the fourth quarter of 2018 comprising the
drydocking cost of one vessel completing her drydocking that
started within the third quarter of 2018, another vessel that
completed her in water survey and a third vessel that completed her
drydock in 2019 while during the fourth quarter of 2017, we had one
vessel completing her drydocking recording a $0.4 million expense.
Depreciation expense for the fourth quarter of 2018 was $0.8
million slightly higher compared to the same period of 2017.
On average, 11.0 vessels were owned and
operated during the fourth quarter of 2018 earning an average time
charter equivalent rate of $8,577 per day compared to 11.3 vessels
in the same period of 2017 earning on average $8,057 per
day.
Adjusted EBITDA1 for the fourth quarter of 2018
was $1.2 million compared to $1.5 million achieved during the
fourth quarter of 2017. Please see below for Adjusted EBITDA
reconciliation to net loss.
Basic and diluted loss per share attributable to
common shareholders for the fourth quarter of 2018 was $0.07
calculated on 11,815,347 basic and diluted weighted average number
of shares outstanding, compared to basic and diluted earnings per
share of $0.02 for the fourth quarter of 2017, calculated on
11,113,718 basic and diluted weighted average number of shares
outstanding.
Excluding the effect on the loss attributable to
common shareholders for the quarter of the loss on derivatives the
adjusted net loss per share attributable to common shareholders for
the quarter ended December 31, 2018 would have been $0.07 per share
basic and diluted compared to adjusted net loss of $0.01 per share
basic and diluted for the quarter ended December 31, 2017 which was
also adjusted by excluding the gain on sale of a vessel. Usually,
security analysts do not include the above items in their published
estimates of earnings per share.
Full Year 2018 Results:For the
full year of 2018, the Company reported total net revenues of $34.4
million representing a 44.9% increase over total net revenues of
$23.8 million during the twelve months of 2017. The Company
reported a net loss for the year of $0.7 million and a net loss
attributable to common shareholders of $2.0 million, as compared to
net loss of $6.9 million and a net loss attributable to common
shareholders of $8.8 million, respectively, for the twelve months
of 2017. The results for the twelve months of 2018 include a $1.3
million gain on sale of a vessel, $0.2 million of unrealized gain
on derivatives and a $0.2 million of realized loss on derivatives.
The results for the twelve months of 2017 include a $0.01 million
gain on derivatives, a $0.8 million gain on sale of vessels, and a
$4.6 million loss on write-down on two vessels held for sale.
Depreciation expense for the twelve months of 2018 was $3.3 million
compared to $3.6 million during the same period of 2017. Although
the average number of vessels increased, one vessel which was held
for sale during the second semester of 2018 did not contribute to
the depreciation charge and the new vessels acquired have a lower
average daily depreciation charge as a result of their lower
acquisition cost and greater remaining useful life compared to the
remaining vessels.
Interest and other financing costs for the
twelve months of 2018 amounted to $3.1 million compared to $1.6
million for the same period of 2017. This increase is due to the
increased amount of debt and increased LIBOR in the current period
compared to the same period of 2017. Vessel operating expenses for
the same period of 2018 amounted to $20.0 million as compared to
$15.0 million for the same period of 2017. The increased amount is
due to the higher number of vessels owned and operated in the
twelve months of 2018 compared to the same period of 2017.
Drydocking expenses amounted to $2.8 million for the twelve months
of 2018 (three of our vessels completed their special surveys with
drydocks, another three completed their intermediate surveys
in-water and a vessel started her special survey that completed
with drydock in 2019), compared to $0.6 million for the same period
of 2017 where one of our vessels completed its intermediate
survey.
On average, 11.49 vessels were owned and
operated during the twelve months of 2018 earning an average time
charter equivalent rate of $9,179 per day compared to 9.28 vessels
in the same period of 2017 earning on average $7,309 per
day.
Adjusted EBITDA1 for the twelve months of 2018
was $4.3 million compared to $1.9 million during the twelve months
of 2017. Please see below for Adjusted EBITDA reconciliation to net
loss.
Basic and diluted loss per share attributable to
common shareholders for the twelve months of 2018 was $0.18,
calculated on 11,318,197 basic and diluted weighted average number
of shares outstanding compared to basic and diluted loss per share
of $0.79 for the twelve months of 2017, calculated on 11,067,524
basic and diluted weighted average number of shares
outstanding.
Excluding the effect on the loss attributable to
common shareholders for the twelve months of 2018 of the gain on
derivatives and the gain on sale of a vessel, the adjusted net loss
per share attributable to common shareholders for the year ended
December 31, 2018 would have been $0.29 compared to adjusted net
loss of $0.45 per share basic and diluted for 2017. Usually,
security analysts do not include the above items in their published
estimates of earnings per share.
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment(*) |
TCE Rate ($/day) |
Container Carriers |
|
|
|
|
|
|
AKINADA BRIDGE |
Intermediate |
71,366 |
5,610 |
2001 |
TC until Sep-19 |
$8,500 |
EM
ASTORIA |
Feeder |
35,600 |
2,788 |
2004 |
TC until Aug-19 |
$9,650 |
EM
CORFU |
Feeder |
34,654 |
2,556 |
2001 |
TC until Feb-20 |
$11,600 |
EVRIDIKI G |
Feeder |
34,677 |
2,556 |
2001 |
TC until Sep-19 |
$12,000 |
EM
ATHENS |
Feeder |
32,350 |
2,506 |
2000 |
TC until Mar-19 |
$10,400 |
EM
OINOUSSES |
Feeder |
32,350 |
2,506 |
2000 |
TC until Mar-19 |
$9,500 |
JOANNA |
Feeder |
22,301 |
1,732 |
1999 |
TC until Feb-20 |
$6,650 |
MANOLIS P |
Feeder |
20,346 |
1,452 |
1995 |
TC until Apr-19 thereafter TC 'till Mar-20 |
$9,500 $6,800 |
AEGEAN EXPRESS |
Feeder |
18,581 |
1,439 |
1997 |
TC until Apr-19 |
$7,500 |
KUO
HSIUNG |
Feeder |
18,154 |
1,169 |
1993 |
TC until Mar-19 thereafter TC ‘till Jul-19 |
$9,750 $7,750 |
NINOS |
Feeder |
18,253 |
1,169 |
1990 |
TC until Mar-19 thereafter TC ‘till Jul-19 |
$9,750 $7,750 |
Total Container
Carriers |
11 |
338,632 |
25,483 |
|
|
|
Note: (*) Represents the earliest redelivery
date
Summary Fleet Data:
|
Three Months, Ended December 31,
2017 |
Three Months, Ended December 31,
2018 |
Twelve Months, Ended December 31,
2017 |
Twelve Months, Ended
December 31, 2018 |
FLEET DATA |
|
|
|
|
Average
number of vessels (1) |
11.3 |
11.00 |
9.28 |
11.49 |
Calendar
days for fleet (2) |
1,040.0 |
1,012.0 |
3,386.0 |
4,191.0 |
Scheduled
off-hire days incl. laid-up (3) |
24.5 |
7.6 |
100.7 |
76.5 |
Available
days for fleet (4) = (2) - (3) |
1,015.5 |
1,004.4 |
3,285.3 |
4,114.5 |
Commercial off-hire days (5) |
41.1 |
92.1 |
83.5 |
137.8 |
Operational off-hire days (6) |
11.3 |
1.4 |
17.5 |
162.7 |
Voyage
days for fleet (7) = (4) - (5) - (6) |
963.1 |
910.9 |
3,184.3 |
3,814.0 |
Fleet
utilization (8) = (7) / (4) |
94.8% |
90.7% |
96.9% |
92.7% |
Fleet
utilization, commercial (9) = ((4) - (5)) / (4) |
96.0% |
90.8% |
97.5% |
96.7% |
Fleet
utilization, operational (10) = ((4) - (6)) / (4) |
98.9% |
99.9% |
99.5% |
96.0% |
|
|
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
Time
charter equivalent rate (11) |
8,057 |
8,577 |
7,309 |
9,179 |
Vessel operating expenses
excl. drydocking expenses (12) |
5,216 |
5,275 |
5,213 |
5,613 |
General and administrative
expenses (13) |
518 |
507 |
739 |
612 |
Total vessel operating expenses (14) |
5,734 |
5,782 |
5,952 |
6,225 |
Drydocking expenses (15) |
413 |
332 |
169 |
662 |
(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 days in a period during which each vessel in
our fleet was in our possession 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, 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 determined by
dividing revenue generated from voyage charters 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 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 is
calculated by dividing other 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, management
fees and other 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, which 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:Today, Wednesday,
February 20, 2019 at 10:00 a.m. Eastern Time, 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 (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 March 1, 2019, 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.
The slide presentation on the Fourth Quarter
2018 results will also be available in PDF format 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 December 31, |
Three
Months Ended December 31, |
Twelve
Months Ended December 31, |
Twelve Months Ended December 31, |
|
2017 |
2018 |
2017 |
2018 |
|
|
|
|
|
Revenues |
|
|
|
|
Voyage revenue |
8,107,038 |
8,434,324 |
24,837,367 |
36,268,884 |
Related party revenue |
60,000 |
- |
240,000 |
- |
Commissions |
(377,603) |
(415,882) |
(1,318,248) |
(1,844,147) |
Net revenue, continuing
operations |
7,789,435 |
8,018,442 |
23,759,119 |
34,424,737 |
|
|
|
|
|
Operating
expenses |
|
|
|
|
Voyage
expenses |
347,102 |
621,560 |
1,564,489 |
1,261,088 |
Vessel
operating expenses |
4,561,405 |
4,540,426 |
15,019,342 |
19,986,170 |
Other
operating income |
(499,103) |
|
(499,103) |
|
Drydocking
expenses |
429,732 |
336,352 |
571,291 |
2,774,925 |
Vessel depreciation |
708,156 |
798,712 |
3,585,965 |
3,305,950 |
Related
party management fees |
863,390 |
797,456 |
2,632,637 |
3,536,094 |
Gain on
sale of vessel |
(287,250) |
- |
(803,811) |
(1,340,952) |
Other
general and administrative expenses |
538,994 |
513,244 |
2,502,203 |
2,565,502 |
Loss on
write-down of vessels held for sale |
- |
- |
4,595,819 |
- |
Total operating
expenses, continuing operations |
6,662,426 |
7,607,750 |
29,168,832 |
32,088,777 |
|
|
|
|
|
Operating income /
(loss), continuing operations |
1,127,009 |
410,692 |
(5,409,713) |
2,335,960 |
|
|
|
|
|
Other
income/(expenses) |
|
|
|
|
Interest
and other financing costs |
(491,743) |
(988,040) |
(1,554,695) |
(3,050,768) |
Gain /
(loss) on derivatives, net |
33,634 |
1,031 |
12,389 |
(44,343) |
Foreign
exchange gain/(loss) |
702 |
17,225 |
(30,214) |
13,963 |
Interest
income |
8,577 |
21,647 |
37,972 |
81,792 |
Other expenses, net, continuing
operations |
(448,830) |
(948,137) |
(1,534,548) |
(2,999,356) |
Net income / (loss), continuing operations |
678,179 |
(537,445) |
(6,944,261) |
(663,396) |
Dividend Series B Preferred shares |
(464,403) |
(244,031) |
(1,808,811) |
(1,335,733) |
Net income / (loss) of continuing operations available
to common shareholders |
213,776 |
(781,476) |
(8,753,072) |
(1,999,129) |
Earnings / (loss), per share, basic and diluted, continuing
operations |
0.02 |
(0.07) |
(0.79) |
(0.18) |
Weighted average number of shares outstanding, basic and
diluted |
11,113,718 |
11,815,347 |
11,067,524 |
11,318,197 |
Net income attributable to common shareholders, discontinued
operations |
1,276,321 |
560,098 |
849,701 |
554,506 |
Net income / (loss) attributable to common
shareholders |
1,490,097 |
(221,378) |
(7,903,371) |
(1,444,623) |
Euroseas Ltd., Unaudited
Consolidated Condensed Balance Sheets(All amounts
expressed in U.S. Dollars – except number of shares)
|
December
31, 2017 |
|
December 31, 2018 |
ASSETS |
(unaudited) |
Current Assets |
|
|
|
Cash and cash equivalents |
2,858,927 |
|
6,960.258 |
Trade accounts receivable, net |
885,495 |
|
958,705 |
Other receivables |
965,037 |
|
2,031,415 |
Inventories |
1,193,018 |
|
1,704,391 |
Restricted cash |
1,103,953 |
|
117,063 |
Prepaid expenses |
247,039 |
|
222,336 |
Vessel held for sale |
4,914,782 |
|
- |
Total current assets, continuing operations |
12,168,251 |
|
11,994,168 |
Current assets of discontinued operations |
3,914,117 |
|
- |
Total current assets |
16,082,368 |
|
11,994,168 |
|
|
|
|
Long-term assets |
|
|
|
Vessels, net |
52,132,079 |
|
48,826,128 |
Restricted cash |
4,334,267 |
|
6,134,267 |
Due from spun-off subsidiary |
24,585,518 |
|
- |
Fixed and long- term assets of discontinued operations |
65,197,615 |
|
- |
Total assets |
162,331,847 |
|
66,954,563 |
|
|
|
|
Liabilities, Mezzanine equity and shareholders'
equity |
|
|
|
Current liabilities |
|
|
|
Long-term bank loans, current portion |
4,203,261 |
|
4,870,241 |
Trade accounts payable |
1,522,473 |
|
2,288,525 |
Accrued expenses |
1,117,110 |
|
1,301,805 |
Deferred revenue |
590,178 |
|
417,634 |
Derivatives |
229,451 |
|
41,435 |
Due to related company |
4,986,836 |
|
2,672,895 |
Total current liabilities, continuing
operations |
12,649,309 |
|
11,592,535 |
Current liabilities of discontinued operations |
5,885,574 |
|
- |
Total current liabilities |
18,534,883 |
|
11,592,535 |
|
|
|
|
Long-term liabilities |
|
|
|
Long -term bank loans, net of current portion |
29,811,241 |
|
31,716,549 |
Derivatives |
16,631 |
|
- |
Vessel profit participation liability |
1,297,100 |
|
1,067,500 |
Total long-term liabilities, continuing
operations |
31,124,972 |
|
32,784,049 |
Long- term liabilities of discontinued operations |
30,364,035 |
|
- |
Total long term liabilities |
61,489,007 |
|
32,784,049 |
Total liabilities |
80,023,890 |
|
44,376,584 |
|
|
|
|
Mezzanine equity: |
|
|
|
Series B Preferred shares (par value $0.01, 20,000,000 shares
authorized, 37,314 and 19,605 issued and outstanding,
respectively) |
35,613,759 |
|
18,757,361 |
Shareholders’ equity: |
|
|
|
Common stock (par value $0.03, 200,000,000 shares authorized,
11,274,126 and 12,515,645 issued and outstanding) |
338,230 |
|
375,476 |
Additional paid-in capital |
284,236,597 |
|
233,668,127 |
Accumulated deficit |
(237,880,629) |
|
(230,222,985) |
|
|
|
- |
Total shareholders’ equity |
46,694,198 |
|
3,820,618 |
Total liabilities, mezzanine equity and shareholders'
equity |
162,331,847 |
|
66,954,563 |
|
|
|
|
Euroseas Ltd. Unaudited
Consolidated Condensed Statements of Cash
Flows (All amounts expressed in U.S.
Dollars)
|
Twelve Months
Ended December 31, |
Twelve
Months Ended December 31, |
|
2017 |
2018 |
|
|
|
Cash flows from operating
activities: |
|
|
Net loss, continuing operations |
(6,944,262) |
(663,396) |
Adjustments to reconcile net loss to net cash
provided by operating activities: |
|
|
Vessel depreciation |
3,585,965 |
3,305,950 |
Other operating income |
(499,103) |
- |
Amortization of deferred charges |
113,244 |
321,181 |
Share-based compensation |
116,562 |
124,487 |
Gain on sale of vessel |
(803,811) |
(1,340,952) |
Loss on write-down of vessels held for sale |
4,595,819 |
- |
Unrealized loss / (gain) on derivatives |
5,901 |
(204,647) |
Amortization of debt discount |
60,988 |
465,507 |
Changes in operating
assets and liabilities |
4,821,722 |
(3,482,960) |
Net cash provided
by / (used in) operating activities of continuing
operations |
5,053,025 |
(1,474,830) |
|
|
|
Cash flows from investing
activities: |
|
|
Cash paid for vessel acquisition and capitalized
expenses |
(30,063,480) |
(1,867) |
Release of funds from minority investment |
4,000,000 |
- |
Proceeds from sale of vessels |
9,552,260 |
6,255,735 |
Net cash (used in) / provided by investing activities of
continuing operations |
(16,511,220) |
6,253,868 |
|
|
|
Cash flows from financing
activities: |
|
|
Proceeds from issuance of common stock, net of
commissions paid |
549,495 |
1,975,110 |
Investment in subsidiary spun-off |
(915,525) |
(3,298,356) |
Due from spun-off subsidiary |
639,312 |
- |
Loan arrangement fees paid |
(187,637) |
(419,863) |
Offering expenses paid |
(341,072) |
(22,488) |
Proceeds from long- term bank loans |
22,250,000 |
34,250,000 |
Repayment of long-term bank loans |
(7,243,915) |
(32,349,000) |
Repayment of related
party loan |
(2,000,000) |
- |
Net cash provided
by financing activities of continuing operations |
12,750,658 |
135,403 |
|
|
|
Net increase in cash, cash equivalents and
restricted cash |
1,292,463 |
4,914,441 |
Cash, cash equivalents
and restricted cash at beginning of year |
7,004,684 |
8,297,147 |
Cash, cash
equivalents and restricted cash at end of year, continuing
operations |
8,297,147 |
13,211,588 |
Cash breakdown |
|
|
Cash and cash equivalents |
2,858,927 |
6,960,258 |
Restricted cash, current |
1,103,953 |
117,063 |
Restricted cash, long term |
4,334,267 |
6,134,267 |
Total cash, cash equivalents and restricted cash shown in
the statement of cash flows, continuing operations |
8,297,147 |
13,211,588 |
Discontinued
operations: |
|
|
Net cash provided by
operating activities of discontinued operations |
2,910,287 |
3,970,170 |
Net cash used in
investing activities of discontinued operations |
(9,635,504) |
(29,045,685) |
Net cash provided by financing activities of
discontinued operations |
9,283,359 |
27,928,885 |
|
|
|
Euroseas Ltd. Continuing
OperationsReconciliation of Adjusted EBITDA to Net
loss(All amounts expressed in U.S.
Dollars)
|
Three
Months EndedDecember 31, 2017 |
Three
Months EndedDecember 31, 2018 |
Twelve
Months EndedDecember 31, 2017 |
Twelve
Months EndedDecember 31, 2018 |
Net income / (loss) |
678,179 |
(537,445) |
(6,944,261) |
(663,396) |
Interest and other financing costs, net (incl. interest
income) |
483,166 |
966,393 |
1,516,723 |
2,968,976 |
Vessel depreciation |
708,156 |
798,712 |
3,585,965 |
3,305,950 |
Loss on write-down of vessels held for sale |
- |
- |
4,595,819 |
- |
Gain on sale of vessel |
(287,250) |
- |
(803,811) |
(1,340,952) |
Unrealized and realized (gain) / loss on derivatives, net |
(33,634) |
(1,031) |
(12,389) |
44,343 |
Adjusted EBITDA |
1,548,617 |
1,226,629 |
1,938,046 |
4,314,921 |
Adjusted EBITDA
Reconciliation:Euroseas Ltd. considers Adjusted EBITDA to
represent net income/(loss) before interest, income taxes,
depreciation, gain / loss on derivatives, loss on write-down of
vessels held for sale and gain on sale of vessel. Adjusted EBITDA
does not represent and should not be considered as an alternative
to net loss, 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 we believe 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 derivatives, loss on write-down of vessels
held for sale, gain on sale of vessel 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.
Euroseas Ltd. Continuing
OperationsReconciliation of Net loss to Adjusted
net loss(All amounts expressed in U.S. Dollars –
except share data and number of shares)
|
Three Months EndedDecember 31,
2017 |
Three Months EndedDecember 31,
2018 |
Twelve Months
EndedDecember 31, 2017 |
Twelve Months EndedDecember 31,
2018 |
Net income / (loss) |
678,179 |
(537,445) |
(6,944,261) |
(663,396) |
Unrealized (gain) / loss on derivatives |
(26,258) |
(32,685) |
5,901 |
(204,647) |
Realized (gain) / loss on derivatives |
(7,376) |
31,654 |
(18,290) |
248,990 |
Gain on sale of vessel |
(287,250) |
- |
(803,811) |
(1,340,952) |
Loss on write-down of vessels held for sale |
- |
- |
4,595,819 |
- |
Adjusted net income / (loss) |
357,295 |
(538,476) |
(3,164,642) |
(1,960,005) |
Preferred dividends |
(464,403) |
(244,031) |
(1,808,811) |
(1,335,733) |
Adjusted net loss attributable to common
shareholders |
(107,108) |
(782,507) |
(4,973,453) |
(3,295,738) |
Adjusted net loss per share, basic and diluted |
(0.01) |
(0.07) |
(0.45) |
(0.29) |
Weighted average number of shares, basic and diluted |
11,113,718 |
11,815,347 |
11,067,524 |
11,318,197 |
Adjusted net loss and Adjusted net loss
per share Reconciliation:Euroseas Ltd. considers Adjusted
net loss to represent net income / (loss) before gain / loss on
derivatives, loss on write-down of vessels held for sale and gain
on sale of vessel. Adjusted net loss and Adjusted net loss 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 gain
/ loss on derivatives, loss on write-down of vessels held for sale
and gain on sale of vessel, which items may significantly affect
results of operations between periods.
Adjusted net loss and Adjusted net loss per
share do not represent and should not be considered as an
alternative to net loss or loss per share, as determined by GAAP.
The Company's definition of Adjusted net loss and Adjusted net loss
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 11 vessels, including 10 Feeder
containerships and 1 Intermediate Container carrier. Euroseas 11
containerships have a cargo capacity of 25,483 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:
euroseas@capitallink.com |
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