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 ended March 31, 2020.
First Quarter 2020 Financial
Highlights:
- Total net revenues of $15.4
million. Net income of $2.0 million; net income attributable to
common shareholders (after a $0.2 million of dividend on Series B
Preferred Shares) of $1.8 million or $0.32 per share basic and
diluted. Adjusted net income attributable to common
shareholders¹ for the period was $1.0 million or $0.17 per
share basic and diluted.
- Adjusted EBITDA¹ was $4.1
million.
- An average of 19.0 vessels were
owned and operated during the first quarter of 2020 earning an
average time charter equivalent rate of $9,615 per day.
- Finally, the Company declared its
fifth cash dividend of $0.2 million on its Series B Preferred
Shares.
____________________________________________
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.
Aristides Pittas, Chairman and CEO of
Euroseas commented: “During the first quarter of 2020,
containership markets were affected by the COVID-19 pandemic and
declined throughout the quarter. The decline continued during April
and May 2020 as regions which typically drive containerized trade,
like Europe and North America, locked down their economies to
control the spread of the pandemic, negatively affecting trade
growth. Indeed, it is expected that 2020 will register a
significant shrinkage of containerized trade although some recovery
should start taking place by the fourth quarter as the world
economy is gradually exiting from the lock down.”
“Within this very challenging environment,
almost all of our vessels have remained employed at profitable
rates during the first quarter except for Manolis P and EM
Oinousses which are in the process of being scrapped and, since
early May 2020, EM Spetses which is searching for employment.”
“Looking forward, we believe that there will
remain a challenging market environment in 2020 with our contract
renewals expected to be at lower charter rate levels; but a
supply-demand balance favoring demand should develop in 2021 not
only due to containerized trade and demand for vessels strongly
rebounding but also due to limited supply growth as a result of one
of the lowest orderbooks in the last 20 years. There are still
significant uncertainties remaining regarding the timing and
strength of recovery after the pandemic and risks related to a
potential revival of the trade tensions between US and China.”
“On the investment front, our strategy remains
to take advantage of our status as the only publicly listed feeder
and intermediate-size containership company and use it as a means
of consolidation of other vessels or fleets as we have done in the
second half of 2019.”
Tasos Aslidis, Chief Financial Officer
of Euroseas commented: “The results of the first quarter
of 2020 reflect the better charter rates our vessels earned
compared to the market because of their existing charter contracts
not yet fully affected by the results of the COVID-19 pandemic. Our
net revenues increased significantly as we operated on average 19.0
vessels during the first quarter of 2020 versus 11.0 vessels during
the same period of last year.”
“On a per-vessel-per-day basis, our vessels
earned a higher average charter rate in the first quarter of 2020
as compared to the same period of 2019, as a result of their
existing charters, and different composition of the fleet which now
contains larger and younger vessels on average. Again, on a
per-vessel-per-day basis, the sum of vessel operating expenses,
management fees and general and administrative expenses decreased
by 5.5% during the first quarter of 2020 as compared to the same
period in 2019 which was primarily attributable to the different
mix and allocation of general administrative expenses to a greater
number of vessels we had in 2020. We believe that we continue to
maintain one of the lowest operating cost structures amongst the
public shipping companies which is one of our competitive
advantages.”
“Adjusted EBITDA during the first quarter of
2020 was $4.1 million compared to $1.5 million achieved for the
first quarter of 2019.”
“Finally, as of March 31, 2020, our outstanding
debt (excluding the unamortized loan fees) is about $86.9 million
versus restricted and unrestricted cash of about $5.5 million.”
First Quarter 2020 Results:For
the first quarter of 2020, the Company reported total net revenues
of $15.4 million representing an 85.1% increase over total net
revenues of $8.3 million during the first quarter of 2019. On
average, 19.0 vessels were owned and operated during the first
quarter of 2020 earning an average time charter equivalent rate of
$9,615 per day compared to 11.0 vessels in the same period of 2019
earning on average $9,088 per day. The Company reported a net
income for the period of $2.0 million and a net income attributable
to common shareholders of $1.8 million, as compared to a net loss
of $0.02 million and a net loss attributable to common shareholders
of $0.49 million respectively for the first quarter of 2019. The
results for the first quarter of 2020 include $0.8 million of
amortization of below market charters acquired.
Vessel operating expenses for the first quarter
of 2020 amounted to $8.0 million as compared to $4.8 million for
the same period of 2019. The increased amount is due to the higher
number of vessels owned and operated in the first quarter of 2020
compared to the corresponding period of 2019. Depreciation expense
for the first quarter of 2020 amounts to $1.7 million compared to
$0.8 million for the same period of 2019 due to the increased
number of vessels in the Company’s fleet. In the first quarter of
2020, none of our vessels underwent drydocking. In the same period
of 2019, one vessel completed its special survey with a cost of
$0.7 million.
Interest and other financing costs for the first
quarter of 2020 amounted to $1.3 million compared to $0.7 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 EBITDA1 for the first quarter of 2020
was $4.1 million, compared to $1.5 million achieved for the first
quarter of 2019. Please see below for Adjusted EBITDA
reconciliation to net (loss) / income.
Basic and diluted earnings per share for the
first quarter of 2020 was $0.32, calculated on 5,576,960 basic and
diluted weighted average number of shares outstanding compared to
basic and diluted loss per share of $0.32 for the first 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 gain on
derivatives and the amortization of the below market time charters
acquired, the adjusted earnings per share for the quarter ended
March 31, 2020 would have been $0.17 per share compared to adjusted
loss of $0.33 per share basic and diluted for the first quarter of
2019. Usually, security analysts do not include the above items in
their published estimates of earnings per share.
Fleet Profile: The Euroseas Ltd. fleet profile
is as follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment(*) |
TCE Rate ($/day) |
Container Carriers |
|
|
|
|
|
|
AKINADA BRIDGE |
Intermediate |
71,366 |
5,610 |
2001 |
TC until Oct-20 |
$16,000 |
SYNERGY BUSAN |
Intermediate |
50,726 |
4,253 |
2009 |
TC until Aug-20 |
$12,900 |
SYNERGY ANTWERP |
Intermediate |
50,726 |
4,253 |
2008 |
TC until Jun-20 |
CONTEX(**) 4250 less 6.25%; floor $8,000 / ceiling $16,000 |
SYNERGY OAKLAND |
Intermediate |
50,787 |
4,253 |
2009 |
TC until Jul-20 plus 8-12 months extension option |
$10,000 until Oct-20; option CONTEX(**) 4250 less 10% |
SYNERGY KEELUNG |
Intermediate |
50,969 |
4,253 |
2009 |
TC until Dec-20/Jun-22 plus 8- 12 months option |
$10,000 until Jun-21; $11,750 until Jun-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 |
EM OINOUSSES |
Feeder |
32,350 |
2,506 |
2000 |
Idle (***) |
- |
DIAMANTIS P |
Feeder |
30,360 |
2,008 |
1998 |
TC until Jul-20 |
$8,000 |
EM SPETSES |
Feeder |
23,224 |
1,740 |
2007 |
Idle |
- |
EM HYDRA |
Feeder |
23,351 |
1,740 |
2005 |
TC until May-20 |
$8,000 |
JOANNA |
Feeder |
22,301 |
1,732 |
1999 |
TC until Feb-21 |
$8,050 |
MANOLIS P (****) |
Feeder |
20,346 |
1,452 |
1995 |
To be scrapped |
- |
AEGEAN EXPRESS |
Feeder |
18,581 |
1,439 |
1997 |
TC until Jul-20 |
$6,500 |
KUO HSIUNG |
Feeder |
18,154 |
1,169 |
1993 |
TC until May-20 |
$7,000 |
NINOS |
Feeder |
18,253 |
1,169 |
1990 |
Commences new TC in Jun-20 until Jul-20 |
$6,500 |
Total Container Carriers |
19 |
660,940 |
51,083 |
|
|
|
Note: (*) TC denotes time charter. Charter duration indicates
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
(***) The vessel suffered an engine room fire in January 2020
and is in the process of concluding an insurance claim for
unrepairable damage following which it will be scrapped.
(****) The vessel was sold for scrap but the sale was not
completed due to complications during its delivery to the buyers
related to COVID-19 lockdowns and other restrictions; a dispute
with the buyers is in arbitration. The vessel will be sold for
scrap to new buyers.
Summary Fleet Data:
|
Three Months Ended March 31, 2019 |
Three Months Ended March 31, 2020 |
FLEET DATA |
|
|
Average number of vessels (1) |
11.00 |
19.00 |
Calendar days for fleet (2) |
990.0 |
1,729.0 |
Scheduled off-hire days incl. laid-up (3) |
36.4 |
- |
Available days for fleet (4) = (2) - (3) |
953.6 |
1,729.0 |
Commercial off-hire days (5) |
5.6 |
18.2 |
Operational off-hire days (6) |
0.3 |
65.8 |
Voyage days for fleet (7) = (4) - (5) - (6) |
947.7 |
1,645.0 |
Fleet utilization (8) = (7) / (4) |
99.4% |
95.1% |
Fleet utilization, commercial (9) = ((4) - (5)) / (4) |
99.4% |
98.9% |
Fleet utilization, operational (10) = ((4) - (6)) / (4) |
100% |
96.2% |
|
|
|
AVERAGE DAILY RESULTS |
|
|
Time charter equivalent rate (11) |
9,088 |
9,615 |
Vessel operating expenses excl. drydocking expenses (12) |
5,622 |
5,417 |
General and administrative expenses (13) |
601 |
464 |
Total vessel operating expenses (14) |
6,223 |
5,881 |
Drydocking expenses (15) |
598 |
13 |
(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 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 rate,
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
includes crew costs, provisions, deck and engine stores,
lubricating oil, insurance, maintenance and repairs and management
fees are calculated by dividing vessel operating expenses by fleet
calendar days for the relevant time period. Drydocking expenses are
reported separately.
(13) Daily general and administrative expense is
calculated by dividing general and administrative expense by fleet
calendar days for the relevant time period.
(14) Total vessel operating expenses, or TVOE,
is a measure of our total expenses associated with operating our
vessels. TVOE is the sum of vessel operating expenses excluding
drydocking expenses and general and administrative expenses. Daily
TVOE is calculated by dividing TVOE by fleet calendar days for the
relevant time period.
(15) Drydocking expenses 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:
Later today, Wednesday, May 27, 2020 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: 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 Wednesday, June 3, 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.
The slide presentation on the first quarter
ended March 31, 2020 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 EndedMarch 31, 2019 |
Three Months EndedMarch 31, 2020 |
|
|
|
Revenues |
|
|
Time charter revenue |
8,728,986 |
16,131,322 |
Commissions |
(390,855) |
(698,515) |
Net revenues |
8,338,131 |
15,432,807 |
|
|
|
Operating expenses |
|
|
Voyage expenses |
116,117 |
314,554 |
Vessel operating expenses |
4,789,923 |
8,037,863 |
Drydocking expenses |
592,473 |
23,823 |
Vessel depreciation |
798,712 |
1,727,085 |
Related party management fees |
776,292 |
1,328,822 |
General and administrative expenses |
595,423 |
802,376 |
Total operating expenses |
7,668,940 |
12,234,523 |
|
|
|
Operating income |
669,191 |
3,198,284 |
|
|
|
Other income / (expenses) |
|
|
Interest and other financing costs |
(710,649) |
(1,251,412) |
Loss on derivatives, net |
(2,794) |
- |
Foreign exchange (loss) / gain |
(3,534) |
1,628 |
Interest income |
31,754 |
8,595 |
Other expenses, net |
(685,223) |
(1,241,189) |
|
|
|
Net (loss) / income |
(16,032) |
1,957,095 |
Dividend Series B Preferred shares |
(471,114) |
(159,562) |
Net (loss) / income attributable to common
shareholders |
(487,146) |
1,797,533 |
(Loss) / earnings per share, basic & diluted |
(0.32) |
0.32 |
Weighted average number of shares, basic & diluted |
1,542,508 |
5,576,960 |
Euroseas Ltd.Unaudited
Consolidated Condensed Balance Sheets(All amounts
expressed in U.S. Dollars – except number of shares)
|
December 31, 2019 |
March 31, 2020 |
|
|
|
ASSETS |
|
|
Current
Assets: |
|
|
Cash and cash equivalents |
985,418 |
508,105 |
Trade accounts receivable |
715,097 |
1,585,246 |
Other receivables |
1,570,506 |
2,130,560 |
Inventories |
1,889,164 |
1,847,943 |
Restricted cash |
610,376 |
810,376 |
Vessel held for sale |
- |
1,722,560 |
Prepaid expenses |
526,531 |
591,923 |
Total current assets |
6,297,092 |
9,196,713 |
|
|
|
Fixed
assets: |
|
|
Vessels, net |
116,230,333 |
112,858,218 |
Long-term
assets: |
|
|
Restricted cash |
4,334,267 |
4,134,267 |
Total assets |
126,861,692 |
126,189,198 |
|
|
|
LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities: |
|
|
Long-term bank loans, current portion |
12,295,320 |
13,170,320 |
Related party loan, current |
5,000,000 |
5,000,000 |
Trade accounts payable |
3,899,967 |
2,895,839 |
Accrued expenses |
1,725,321 |
1,482,339 |
Accrued preferred dividends |
161,315 |
159,562 |
Deferred revenue |
973,774 |
791,293 |
Liabilities associated with asset held for sale |
- |
1,133,817 |
Due to related company |
795,562 |
2,663,367 |
Total current
liabilities |
24,851,259 |
27,296,537 |
|
|
|
Long-term
liabilities: |
|
|
Long-term bank loans, net of current portion |
72,187,785 |
68,088,481 |
Fair value of below market time charters acquired |
1,714,370 |
867,965 |
Total long-term
liabilities |
73,902,155 |
68,956,446 |
Total
liabilities |
98,753,414 |
96,252,983 |
|
|
|
Mezzanine
equity: |
|
|
Series B Preferred shares (par value $0.01, 20,000,000 shares
authorized, 8,000 issued and outstanding, respectively) |
7,654,577 |
7,654,577 |
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 |
253,998,112 |
Accumulated deficit |
(233,682,015) |
(231,884,482) |
Total shareholders’ equity |
20,453,701 |
22,281,638 |
Total liabilities, mezzanine equity and shareholders’
equity |
126,861,692 |
126,189,198 |
Euroseas Ltd.Unaudited
Consolidated Condensed Statements of Cash
Flows (All amounts expressed in U.S.
Dollars)
|
Three Months EndedMarch 31, 2019 |
Three Months EndedMarch 31, 2020 |
|
|
|
Cash flows from
operating activities: |
|
|
Net (loss) / income |
(16,032) |
1,957,095 |
Adjustments to reconcile net
(loss) / income to net cash (used in) / provided by operating
activities: |
|
|
Vessel depreciation |
798,712 |
1,727,085 |
Amortization of deferred
charges |
31,339 |
61,156 |
Share-based compensation |
24,862 |
30,404 |
Amortization of debt
discount |
54,101 |
- |
Unrealized gain on
derivatives |
(18,754) |
- |
Amortization of fair value of
below market time charters acquired |
- |
(846,405) |
Changes in operating assets
and liabilities |
(2,368,640) |
(903,784) |
Net cash (used in) / provided by operating
activities |
(1,494,412) |
2,025,551 |
|
|
|
Cash flows from
investing activities: |
|
|
Cash paid for vessels
capitalized expenses |
- |
(149,420) |
Advance
received for vessel held for sale |
- |
1,133,817 |
Net cash provided by operating investing
activities |
- |
984,397 |
Cash flows from
financing activities: |
|
|
Preferred dividends paid |
- |
(161,315) |
Repayment of long-term bank
loans |
(1,303,000) |
(3,285,460) |
Offering expenses paid |
- |
(40,486) |
Net cash used in financing
activities |
(1,303,000) |
(3,487,261) |
|
|
|
Net decrease in cash, cash
equivalents, and restricted cash |
(2,797,412) |
(477,313) |
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 |
10,414,176 |
5,452,748 |
Cash breakdown |
|
|
Cash and cash equivalents |
4,164,659 |
508,105 |
Restricted cash, current |
115,250 |
810,376 |
Restricted cash, long term |
6,134,267 |
4,134,267 |
Total cash, cash
equivalents, and restricted cash shown in the statement of cash
flows |
10,414,176 |
5,452,748 |
Euroseas
Ltd.Reconciliation of Adjusted EBITDA to
Net (Loss) / Income (All amounts expressed
in U.S. Dollars)
|
Three Months EndedMarch 31,
2019 |
Three Months EndedMarch 31,
2020 |
Net (loss) / income |
(16,032) |
1,957,095 |
Interest and finance costs, net (incl. interest income) |
678,895 |
1,242,817 |
Vessel depreciation |
798,712 |
1,727,085 |
Loss on interest rate swap derivatives, net |
2,794 |
- |
Amortization of below market time charters acquired |
- |
(846,405) |
Adjusted EBITDA |
1,464,369 |
4,080,592 |
Adjusted EBITDA
Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to
represent net (loss) / income before interest, income taxes,
depreciation, loss on interest rate swaps and amortization of below
market time charters acquired. 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 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 and amortization of below market time charters
acquired. 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 per share
amounts)
|
Three Months EndedMarch 31,
2019 |
Three Months EndedMarch 31,
2020 |
Net (loss) / income |
(16,032) |
1,957,095 |
Unrealized gain on derivatives |
(18,754) |
- |
Amortization of below market time charters acquired |
- |
(846,405) |
Adjusted net (loss) / income |
(34,786) |
1,110,690 |
Preferred dividends |
(471,114) |
(159,562) |
Adjusted net (loss) / income attributable to common
shareholders |
(505,900) |
951,128 |
Adjusted (loss) / earnings per share, basic &
diluted |
(0.33) |
0.17 |
Weighted average number of shares, basic & diluted |
1,542,508 |
5,576,975 |
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 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 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 19 vessels, including
14 Feeder containerships and 5 Intermediate containerships.
Euroseas 19 containerships have a cargo capacity of 51,083 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 the Company’s
website www.euroseas.gr
Company ContactTasos AslidisChief Financial
OfficerEuroseas Ltd.11 Canterbury Lane,Watchung, NJ 07069Tel. (908)
301-9091E-mail: aha@euroseas.gr |
Investor Relations / Financial MediaNicolas
BornozisPresidentCapital Link, Inc.230 Park Avenue, Suite 1536New
York, NY 10169Tel. (212) 661-7566E-mail:
euroseas@capitallink.com |
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