Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner
and operator of container carrier vessels and provider of seaborne
transportation for containerized cargoes, announced today its
results for the three- and six-month periods ended June 30, 2024.
Second Quarter 2024 Financial
Highlights:
- Total net revenues of $58.7
million. Net income of $40.7 million or $5.89 and $5.84 earnings
per share basic and diluted, respectively. Adjusted net income1 for
the period was $34.3 million or $4.95 and $4.92 per share basic and
diluted.
- Adjusted EBITDA1 was $42.3
million.
- An average of 21.26 vessels were
owned and operated during the second quarter of 2024 earning an
average time charter equivalent rate of $31,639 per day.
- Declared a quarterly dividend of
$0.60 per share for the second quarter of 2024 payable on or about
September 17, 2024, to shareholders of record on September 9, 2024,
as part of the Company’s common stock dividend plan.
- On July 19, 2024, the Company took
delivery of its seventh newbuilding M/V “Pepi Star”, an eco 1,800
teu feeder containership from Hyundai Mipo Dockyard Co. in South
Korea. The vessel is EEDI Phase 3 compliant and equipped with a
Tier III engine and other sustainability linked features including
installation of AMP (alternative maritime power). The acquisition
was financed with a combination of own funds and a loan provided by
Piraeus Bank S.A. Following its delivery, M/V “Pepi Star” commenced
a twenty-three to twenty-five month charter at a rate of $24,250
per day.
- As of August 6, 2024, we have
repurchased 400,705 shares of our common stock in open market
transactions for $8.2 million, since the initiation of our share
repurchase plan of up to $20 million announced in May 2022. The
original share repurchase program of $20 million approved by the
Board during 2022 and extended for a year during 2023, has been
extended for another year.
First Half 2024 Financial Highlights:
- Total net revenues of $105.4
million. Net income of $60.8 million or $8.77 and $8.71 earnings
per share basic and diluted, respectively. Adjusted net income1 for
the period was $52.8 million or $7.63 and $7.57 per share basic and
diluted, respectively.
- Adjusted EBITDA1 was $66.9
million.
- An average of 20.43 vessels were
owned and operated during the first half of 2024 earning an average
time charter equivalent rate of $29,836 per day.
Aristides Pittas, Chairman and CEO of Euroseas
commented:
“We are very pleased to report our results for
the second quarter of 2024 which are the best we recorded in recent
years. Also, we are pleased to have welcomed through the second
quarter and in early July 2024, four more of our nine vessel
newbuilding program with the remaining two vessels scheduled to be
delivered to us in January 2025.
“The second quarter was a good quarter for the
containership markets, with charter rates continuing their increase
and on average [more than doubling] over their levels at the end of
2023, a trend clearly evident in the charter rates and contract
periods we secured for our own vessels. In July 2024, we saw market
charter rates pausing their increase consolidating their levels,
partly due to summer seasonality and partly to the evolving
geopolitical scene.
“In the containership supply front, the
challenges the market may face looking forward remain as there is a
significant orderbook still to be delivered, at about 22% of the
fleet down from a peak of about 30%, and, in addition, fleet
capacity could be released if trade routes return to their end-2023
pattern, i.e. before Houthi attacks on Suez Canal crossing shipping
forced liner companies to re-route their ships around Africa. To
absorb such additional supply, the industry depends on demand for
containerized trade continuing and, even, increasing and that, in
turn, requires global economic growth and trades staying healthy.
The anticipated interest rate cuts in the remaining of 2024 by
central banks should contribute to the latter and it is a factor to
watch for shipping demand prospects in the medium term as are
government protectionist measures that may reduce trade.
“In any event, we believe that with charter
coverage of about 75% over the next twelve months, we are
sufficiently insulated from market developments. We hope that we
will also be able to re-charter the few vessels opening up this
year at levels around the current ones further strengthening our
forward cover. We, thus, focus on appropriately managing the cash
flow our charter contracts generate. We continue returning funds to
our shareholders via our dividend program offering an annual yield
of about 6.5% at current share price levels and a share repurchase
program as our stock trades below our net asset value. Furthermore,
we are diligently looking for and evaluating accretive investment
opportunities.”
Tasos Aslidis, Chief Financial Officer
of Euroseas commented: “Within the second quarter of 2024
the container charter market has improved as compared to the first
quarter of the year. Our results for the second quarter of 2024 are
significantly higher compared to the same period of 2023. This was
the result of the higher average number of vessels operating (we
operated 21.26 vessels during the second quarter of 2024 versus
17.95 vessels during the same period of last year) and the
increased time charter equivalent rate our vessels earned during
the second quarter of 2024 compared to the same period of last
year. On a per-vessel-per-day basis, our vessels earned a 4.9%
higher average charter rate in the second quarter of 2024 as
compared to the same period of 2023. Our net revenues increased to
$58.7 million in the second quarter of 2024 compared to $47.7
million during the same period of last year.
“Daily vessel operating expenses, including
management fees but excluding drydocking costs, averaged $6,612 per
vessel per day during the second quarter of 2024 as compared to
$7,114 per vessel per day for the same quarter of last year, and
$6,926 per vessel per day for the first half of 2024 as compared to
$7,220 per vessel per day for the same period of 2023, reflecting a
7.1% and 4.1% decrease, respectively, which was attributable to the
significantly lower daily operating costs of the six new building
vessels delivered to the Company gradually within the past fourteen
months. General and administrative expenses averaged $581 per
vessel per day during the second quarter of 2024 as compared to
$715 per vessel per day for the same quarter of last year, and $637
per vessel per day for the first half of 2024 as compared to $728
per vessel per day for the same period of 2023. The decrease is
mainly due to the increased number of fleet calendar days within
2024 as compared to 2023 as the actual cost of the general and
administrative expenses remained at the same levels in both
periods.
“Adjusted EBITDA during the second quarter of
2024 was $42.3 million versus $30.6 million in the second quarter
of last year, a nearly 40% increase. As of June 30, 2024, our
outstanding debt (excluding the unamortized loan fees) was $208.1
million versus restricted and unrestricted cash of $76.3 million.
As of the same date, our scheduled bank debt repayments over the
next 12 months amounted to about $39.1 million (excluding the
unamortized loan fees).”
Second Quarter 2024 Results:
For the second quarter of 2024, the Company
reported total net revenues of $58.7 million representing a 23.1%
increase over total net revenues of $47.7 million during the second
quarter of 2023. This was a result of the increased time charter
rates our vessels earned in the second quarter of 2024 compared to
the same period of 2023, and the increase in the average number of
vessels owned and operated in the second quarter of 2024 compared
to the same period of 2023. On average, 21.26 vessels were owned
and operated during the second quarter of 2024 earning an average
time charter equivalent rate of $31,639 per day compared to 17.95
vessels in the same period of 2023 earning on average $30,151 per
day. The Company reported a net income for the period of $40.7
million, as compared to a net income of $28.9 million,
respectively, for the same period of 2023.
For the second quarter of 2024, a gain on
bunkers from the sale of M/V “EM Astoria”, resulted in positive
voyage expenses of $0.25 million. For the same period of 2023,
voyage expenses amounted to $0.2 million, representing mainly
owners’ expenses at certain ports.
Vessel operating expenses were $11.1 million in
the second quarter of 2024 as compared to $10.3 million for the
second quarter of 2023. The increase is due to the higher average
number of vessels owned and operated in the second quarter of 2024
compared to the corresponding period of 2023, partly offset by the
lower daily vessel operating expenses, mainly attributable to the
significantly lower daily operating costs of the six new building
vessels delivered to the Company gradually within the past fourteen
months.
Depreciation expense for the second quarter of
2024 amounted to $6.8 million compared to $5.6 million for the same
period of 2023 due to the increased number of vessels in the
Company’s fleet.
Related party management fees for the second
quarter of 2024 were also increased to $1.7 million from $1.3
million for the same period of 2023 due to the higher number of
vessels in our fleet and the adjustment for inflation in the daily
vessel management fee, effective from January 1, 2024, increasing
it from 775 Euros to 810 Euros and the unfavorable movement of the
euro/dollar exchange rate.
General and administrative expenses amounted to
$1.1 million for the second quarter of 2024, remaining at the same
levels of last year’s $1.2 million for the second quarter of
2023.
In the second quarter of 2024 two of our vessels
completed their special survey with drydock. The first one entered
the drydock yard within the previous quarter and completed the
survey in the second quarter while the second one was performed
during the quarter. The total cost of these surveys was $1.6
million. In the second quarter of 2023 none of our vessels was
drydocked, with an amount of $0.4 million accounted for drydocking
expenses incurred in relation to upcoming drydockings. The results
of the Company for the second quarter of 2024 include a $5.7
million gain on sale of M/V “EM Astoria” that was completed in June
2024.
Total interest and other financing costs for the
second quarter of 2024 amount to $3.5 million, of which $1.4
million relates to interest charged and capitalized in relation to
our newbuilding program, compared to $2.4 million, of which $1.2
million relates to interest charged and capitalized in relation to
our newbuilding program for the second quarter of 2023. This
increase is due to the increased amount of debt and the increase in
the weighted average benchmark rates of our bank loans in the
current period compared to the same period of 2023.
For the three months ended June 30, 2024, the
Company recognized a $0.1 million realized gain and a $0.02 million
unrealized gain for a total of $0.1 million gain on its interest
rate swap contracts. For the three months ended June 30, 2023, the
Company recognized a $3.7 million realized gain and a $2.7 million
unrealized loss for a total of $1.0 million net gain on its
interest rate swap contracts.
Adjusted EBITDA for the second quarter of 2024
was $42.3 million compared to $30.6 million achieved during the
second quarter of 2023.
Basic and diluted earnings per share for the
second quarter of 2024 was $5.89 and $5.84, calculated on 6,923,331
basic and 6,978,682 diluted weighted average number of shares
outstanding, compared to basic and diluted earnings per share of
$4.17 and $4.15, respectively, for the second quarter of 2023,
calculated on 6,919,716 basic and 6,956,447 diluted weighted
average number of shares outstanding.
Excluding the effect on the income of the
unrealized loss / (gain) on derivatives, the gain on sale of a
vessel, the amortization of below market time charters acquired and
the vessel depreciation charged on portion of the consideration of
vessels acquired with attached time charters allocated to below
market time charters, the adjusted earnings for the quarter ended
June 30, 2024 would have been $4.95 per share basic and $4.92
diluted, respectively, compared to adjusted earnings of $4.19 and
$4.17 per share basic and diluted for the quarter ended June 30,
2023. Usually, security analysts do not include the above items in
their published estimates of earnings per share.
First Half 2024 Results:
For the first half of 2024, the Company reported
total net revenues of $105.4 million representing a 17.6% increase
over total net revenues of $89.6 million during the first half of
2023. On average, the Company owned and operated 20.43 vessels
during the first half of 2024, earning an average time charter
equivalent rate of $29,836 per day. For the same period of 2023 the
Company owned and operated 17.52 vessels that earned on average
$29,714 per day. The Company reported a net income for the period
of $60.8 million, as compared to a net income of $57.6 million, for
the first half of 2023.
Voyage expenses for the first half of 2024
amounted to $0.8 million as compared to voyage expenses of $0.6
million for the same period of 2023. The increased amount of 2024
is mainly attributable to bunkers consumption by four of our
vessels (M/V “Synergy Antwerp”, M/V “Synergy Oakland”, M/V “Synergy
Keelung” and M/V “Marcos V”) during their drydock period partly
offset by a gain on bunkers from the sale of M/V “EM Astoria”.
Vessel operating expenses for the first half of
2024 amounted to $22.5 million as compared to $20.1 million for the
same period of 2023. The increase is due to the higher average
number of vessels owned and operated in the first half of 2024
compared to the corresponding period of 2023 partly offset by the
lower daily vessel operating expenses, mainly attributable to the
significantly lower daily operating costs of the six new building
vessels delivered to the Company gradually within the past fourteen
months.
Depreciation expense for the first half of 2024
was $12.3 million compared to $10.9 million during the same period
of 2023, due to the increased number of vessels in the Company’s
fleet.
Related party management fees for the first half
of 2024 increased to $3.3 million from $2.8 million for the same
period of 2023 as a result of the higher number of vessels in our
fleet and the adjustment for inflation in the daily vessel
management fee, effective from January 1, 2024, increasing it from
775 Euros to 810 Euros.
General and administrative expenses amounted to
$2.4 million for the first half of 2024, remaining at the same
levels as compared to $2.3 million for the same period of 2023.
In the first half of 2024 four of our vessels
completed their special survey with drydock for a total cost of
approximately $7.2 million. In the same period of 2023 one of our
vessels completed her special survey with drydock for a total cost
of approximately $0.6 million, with an amount of $0.4 million
accounted for drydocking expenses incurred in relation to upcoming
drydockings.
In the first half of 2023, we had other
operating income of $1.4 million. This operating income relates to
loss of hire insurance for two of our vessels. The results of the
Company for the first half of 2024 include a $5.7 million gain on
sale of M/V “EM Astoria” that was completed in June 2024, while the
results for the first half of 2023 include a $5.2 million gain on
sale of M/V “Akinada Bridge” that was completed in January
2023.
Total interest and other financing costs for the
first half of 2024 amount to $6.6 million, of which $2.7 million
relates to interest charged and capitalized in relation to our
newbuilding program, compared to $4.4, of which $2.3 million relate
to interest charged and capitalized in relation to our newbuilding
program for the same period of 2023. This increase is due to the
increased amount of debt and the increase in the weighted average
benchmark rates of our bank loans in the current period compared to
the same period of 2023.
For the six months ended June 30, 2024 the
Company recognized a $0.2 million realized gain and a $0.8 million
unrealized gain for a total of $1.0 million gain on its interest
rate swap contracts. For the six months ended June 30, 2023 the
Company recognized a $4.0 million realized gain and a $3.3 million
unrealized loss for a total of $0.7 million net gain on its
interest rate swap contracts.
Adjusted EBITDA for the first half of 2024 was
$66.9 million compared to $56.6 million achieved during the first
half of 2023.
Basic and diluted earnings per share for the
first half of 2024 was $8.77 calculated on 6,923,331 basic and
$8.71, calculated on 6,973,973 diluted weighted average number of
shares outstanding compared to basic and diluted earnings per share
of $8.28 calculated on 6,958,748 basic and $8.25, calculated on
6,985,422 diluted weighted average number of shares outstanding,
for the same period of 2023.
Excluding the effect on the income for the first
half of the year of the unrealized loss / (gain) on derivatives,
the gain on sale of vessel, the amortization of below market time
charters acquired, the vessel depreciation charged on portion of
the consideration of vessels acquired with attached time charters
allocated to below market time charters, the adjusted earnings per
share for the six-month period ended June 30, 2024 would have been
$7.63 and $7.57, basic and diluted, respectively, compared to
adjusted earnings per share of $7.29 basic and $7.26 diluted for
the same period in 2023. As mentioned above, usually, security
analysts do not include the above items in their published
estimates of earnings per share.
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment(*) |
TCE Rate ($/day) |
Container Carriers |
|
|
|
|
|
|
MARCOS V(*) |
Intermediate |
72,968 |
6,350 |
2005 |
TC until Dec-24, then until Aug-25 |
$42,200Option $15,000 |
SYNERGY BUSAN(*) |
Intermediate |
50,726 |
4,253 |
2009 |
TC until Dec-24 |
$25,000 |
SYNERGY ANTWERP(*) |
Intermediate |
50,726 |
4,253 |
2008 |
TC until Mar-25 |
$26,500 |
SYNERGY OAKLAND(*) |
Intermediate |
50,787 |
4,253 |
2009 |
TC until May-26 |
$42,000 |
SYNERGY KEELUNG(*) |
Intermediate |
50,969 |
4,253 |
2009 |
TC until Apr-25 |
$23,000 |
EMMANUEL P(*) |
Intermediate |
50,796 |
4,250 |
2005 |
TC until Apr-25 |
$21,000 |
RENA P(*) |
Intermediate |
50,796 |
4,250 |
2007 |
TC until Apr-25 |
$21,000 |
EM KEA(*) |
Feeder |
42,165 |
3,100 |
2007 |
TC until May-26 |
$19,000 |
GREGOS(*) |
Feeder |
37,237 |
2,800 |
2023 |
TC until Apr-26 |
$48,000 |
TERATAKI(*) |
Feeder |
37,237 |
2,800 |
2023 |
TC until Jul-26 |
$48,000 |
TENDER SOUL(*) |
Feeder |
37,237 |
2,800 |
2024 |
TC until Dec-24 |
$17,000 |
LEONIDAS Z(*) |
Feeder |
37,237 |
2,800 |
2024 |
TC until Mar-26 |
$20,000 |
EVRIDIKI G(*) |
Feeder |
34,677 |
2,556 |
2001 |
TC until Feb-25 |
$40,000 |
EM CORFU(*) |
Feeder |
34,654 |
2,556 |
2001 |
TC until Feb-25 |
$40,000 |
DIAMANTIS P(*) |
Feeder |
30,360 |
2,008 |
1998 |
TC until Oct-24 |
$27,000 |
STEPHANIA K(*) |
Feeder |
22,262 |
1,800 |
2024 |
TC until May-26 |
$22,000 |
EM SPETSES(*) |
Feeder |
23,224 |
1,740 |
2007 |
TC until Aug-24, then until Feb-26 |
$29,500$18,100 |
JONATHAN P(*) |
Feeder |
23,357 |
1,740 |
2006 |
TC until Sep-24 |
$26,662(**) |
EM HYDRA(*) |
Feeder |
23,351 |
1,740 |
2005 |
TC until Feb-25 |
$13,000 |
JOANNA(+) |
Feeder |
22,301 |
1,732 |
1999 |
TC until Aug-24, then until Jan-26, then until Jun-26,then until
Sep-26 |
$13,500$19,000$9,500$16,500 |
MONICA(*) |
Feeder |
22,262 |
1,800 |
2024 |
TC until May-25 |
$16,000 |
PEPI STAR(*) |
Feeder |
22,262 |
1,800 |
2024 |
TC until Jun-26 |
$24,250 |
AEGEAN EXPRESS(*) |
Feeder |
18,581 |
1,439 |
1997 |
TC until Dec-24 |
$8,000 |
Total Container Carriers on the Water |
23 |
846,172 |
67,073 |
|
|
|
Vessels under construction |
Type |
Dwt |
TEU |
To be delivered |
Employment |
TCE Rate (4/day) |
DEAR PANEL (H4251) |
Feeder |
37,237 |
2,800 |
Q1 2025 |
|
|
SYMEON P (H4252) |
Feeder |
37,237 |
2,800 |
Q1 2025 |
|
|
Total under construction |
2 |
74,474 |
5,600 |
|
|
|
Note: (*) TC denotes time charter. Charter duration
indicates the earliest redelivery date; All dates listed are the
earliest redelivery dates under each TC unless the contract rate is
lower than the current market rate in which cases the latest
redelivery date is assumed; vessels with the latest redelivery date
shown are marked by (+). (**) Rate is net of commissions
(commissions are, typically, 5-6.25%).
Summary Fleet Data:
|
Three months, endedJune 30,
2023 |
Three months, endedJune 30,
2024 |
Six months, endedJune 30,
2023 |
Six months, endedJune 30,
2024 |
FLEET DATA |
|
|
|
|
Average number of vessels (1) |
17.95 |
|
21.26 |
|
17.52 |
|
20.43 |
|
Calendar days for fleet (2) |
1,632.0 |
|
1,936.0 |
|
3,171.0 |
|
3,720.0 |
|
Scheduled off-hire days incl. laid-up (3) |
0.0 |
|
20.7 |
|
0.0 |
|
99.3 |
|
Available days for fleet (4) = (2) - (3) |
1,632.0 |
|
1,915.3 |
|
3,171.0 |
|
3,620.7 |
|
Commercial off-hire days (5) |
0.0 |
|
0.0 |
|
28.9 |
|
3.7 |
|
Operational off-hire days (6) |
3.8 |
|
1.7 |
|
40.8 |
|
3.9 |
|
Voyage days for fleet (7) = (4) - (5) - (6) |
1,628.2 |
|
1,913.6 |
|
3,101.3 |
|
3,613.1 |
|
Fleet utilization (8) = (7) / (4) |
99.8 |
% |
99.9 |
% |
97.8 |
% |
99.8 |
% |
Fleet utilization, commercial (9) = ((4) - (5)) / (4) |
100.0 |
% |
100.0 |
% |
99.1 |
% |
99.9 |
% |
Fleet utilization, operational (10) = ((4) - (6)) / (4) |
99.8 |
% |
99.9 |
% |
98.7 |
% |
99.9 |
% |
|
|
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
Time charter equivalent rate (11) |
30,151 |
|
31,639 |
|
29,714 |
|
29,836 |
|
Vessel operating expenses excl. drydocking expenses (12) |
7,114 |
|
6,612 |
|
7,220 |
|
6,926 |
|
General and administrative expenses (13) |
715 |
|
581 |
|
728 |
|
637 |
|
Total vessel operating expenses (14) |
7,829 |
|
7,193 |
|
7,948 |
|
7,563 |
|
Drydocking expenses (15) |
249 |
|
819 |
|
316 |
|
1,943 |
|
(1) Average number of vessels is the number of
vessels that constituted the Company’s fleet for the relevant
period, as measured by the sum of the number of calendar days each
vessel was a part of the Company’s fleet during the period divided
by the number of calendar days in that period.
(2) Calendar days. We define calendar days as
the total number of days in a period during which each vessel in
our fleet was in our possession including off-hire days associated
with major repairs, drydockings or special or intermediate surveys
or days of vessels in lay-up. Calendar days are an indicator of the
size of our fleet over a period and affect both the amount of
revenues and the amount of expenses that we record during that
period.
(3) The scheduled off-hire days including
vessels laid-up, vessels committed for sale or vessels that
suffered unrepaired damages, are days associated with scheduled
repairs, drydockings or special or intermediate surveys or days of
vessels in lay-up, or vessels that were committed for sale or
suffered unrepaired damages.
(4) Available days. We define available days as
the Calendar days in a period net of scheduled off-hire days as
defined above. 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, if any, 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, which is a
non-GAAP measure, provides additional meaningful information in
conjunction with voyage revenues, the most directly comparable GAAP
measure, because it assists our management in making decisions
regarding the deployment and use of our vessels and because we
believe that it provides useful information to investors regarding
our financial performance. 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
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 us 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. We calculated TVOE as 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) Daily drydocking expenses is calculated by
us by dividing drydocking expenses by the fleet calendar days for
the relevant period. Drydocking expenses include expenses during
drydockings that would have been capitalized and amortized under
the deferral method. 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, August 06, 2024 at 10:00 a.m. Eastern Time,
the Company's management will host a conference call and webcast to
discuss the results.
Conference Call details:
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 877 405 1226 (US
Toll-Free Dial In) or +1 201 689 7823 (US and Standard
International Dial In). Please quote “Euroseas” to the operator
and/or conference ID 13748264.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 webcast of the conference call and
accompanying slides, available on the Company’s website. To listen
to the archived audio file, visit our website
http://www.euroseas.gr and click on Company Presentations under our
Investor Relations page. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
The slide presentation for the second quarter
ended June 30, 2024, will also be available in PDF format 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 EndedJune 30, |
Three Months EndedJune 30, |
Six Months EndedJune 30, |
Six Months EndedJune 30, |
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
|
(unaudited) |
(unaudited) |
Revenues |
|
|
|
|
Time charter revenue |
49,311,751 |
|
60,288,976 |
|
92,771,677 |
|
108,583,615 |
|
Commissions |
(1,616,162 |
) |
(1,564,390 |
) |
(3,139,471 |
) |
(3,140,655 |
) |
Net revenues |
47,695,589 |
|
58,724,586 |
89,632,206 |
|
105,442,960 |
|
|
|
|
|
|
Operating expenses/(income) |
|
|
|
|
Voyage expenses, net |
219,540 |
|
(254,853 |
) |
619,286 |
|
783,280 |
|
Vessel operating expenses |
10,298,601 |
|
11,136,326 |
|
20,142,818 |
|
22,508,405 |
|
Drydocking expenses |
406,514 |
|
1,586,477 |
|
1,001,882 |
|
7,229,311 |
|
Vessel depreciation |
5,616,645 |
|
6,820,674 |
|
10,888,582 |
|
12,262,011 |
|
Related party management fees |
1,311,603 |
|
1,663,711 |
|
2,752,178 |
|
3,255,269 |
|
Other operating income |
(139,511 |
) |
- |
|
(1,429,511 |
) |
- |
|
General and administrative expenses |
1,167,359 |
|
1,125,719 |
|
2,308,006 |
|
2,368,216 |
|
Gain on sale of vessel |
- |
|
(5,690,794 |
) |
(5,158,370 |
) |
(5,690,794 |
) |
Total operating expenses |
18,880,751 |
|
16,387,260 |
|
31,124,871 |
|
42,715,698 |
|
|
|
|
|
|
Operating income |
28,814,838 |
|
42,337,326 |
|
58,507,335 |
|
62,727,262 |
|
|
|
|
|
|
Other (expenses) / income |
|
|
|
|
Interest and other financing costs |
(1,199,728 |
) |
(2,054,215 |
) |
(2,087,399 |
) |
(3,854,370 |
) |
Gain on derivatives, net |
987,883 |
|
117,701 |
|
743,633 |
|
980,707 |
|
Foreign exchange gain / (loss), net |
7,234 |
|
16,325 |
|
(27,436 |
) |
18,317 |
|
Interest income |
265,434 |
|
331,422 |
|
496,782 |
|
878,816 |
|
Other income / (expenses), net |
60,823 |
|
(1,588,767 |
) |
(874,420 |
) |
(1,976,530 |
) |
Net income |
28,875,661 |
|
40,748,559 |
|
57,632,915 |
|
60,750,732 |
|
Weighted average number of shares, basic |
6,919,716 |
|
6,923,331 |
|
6,958,748 |
|
6,923,331 |
|
Earnings per share, basic |
4.17 |
|
5.89 |
|
8.28 |
|
8.77 |
|
Weighted average number of shares, diluted |
6,956,447 |
|
6,978,682 |
|
6,985,422 |
|
6,973,973 |
|
Earnings per share, diluted |
4.15 |
|
5.84 |
|
8.25 |
|
8.71 |
|
Euroseas Ltd. Unaudited
Consolidated Condensed Balance Sheets(All amounts
expressed in U.S. Dollars – except number of shares)
|
December 31,2023 |
June 30,2024 |
|
|
|
ASSETS |
|
|
Current
Assets: |
|
|
Cash and cash equivalents |
58,613,304 |
69,693,515 |
Trade accounts receivable, net |
2,037,940 |
2,784,307 |
Other receivables |
2,276,116 |
2,310,794 |
Inventories |
2,538,342 |
2,760,241 |
Restricted cash |
2,994 |
19,576 |
Prepaid expenses |
502,833 |
779,277 |
Derivatives |
- |
181,395 |
Total current assets |
65,971,529 |
78,529,105 |
Fixed
assets: |
|
|
Vessels, net |
267,626,155 |
420,495,132 |
Long-term
assets: |
|
|
Advances for vessels under construction |
85,375,650 |
41,534,072 |
Restricted cash |
5,700,000 |
6,600,000 |
Derivatives |
- |
377,453 |
Total assets |
424,673,334 |
547,535,762 |
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
Current
liabilities: |
|
|
Long-term bank loans, current portion |
30,839,541 |
38,621,790 |
Trade accounts payable |
5,746,510 |
6,995,424 |
Accrued expenses |
1,856,615 |
2,761,516 |
Accrued dividends |
105,250 |
212,925 |
Deferred revenue |
11,275,911 |
4,097,692 |
Due to related company |
1,298,941 |
928,371 |
Total current
liabilities |
51,187,810 |
53,617,718 |
|
|
|
Long-term
liabilities: |
|
|
Long-term bank loans, net of current portion |
99,161,871 |
167,462,099 |
Derivatives |
168,138 |
- |
Other non-current liabilities |
- |
1,718,845 |
Fair value of below market time charters acquired |
7,580,306 |
5,116,754 |
Total long-term
liabilities |
106,910,315 |
174,297,698 |
Total
liabilities |
158,098,125 |
227,915,416 |
|
|
|
Shareholders’ equity: |
|
|
|
Common stock (par value $0.03, 200,000,000 shares authorized,
7,014,331 and 7,013,581, issued and outstanding) |
210,430 |
210,408 |
|
Additional paid-in capital |
258,434,237 |
259,145,380 |
|
Retained earnings |
7,930,542 |
60,264,558 |
|
Total shareholders’ equity |
266,575,209 |
319,620,346 |
|
Total liabilities and shareholders’ equity |
424,673,334 |
547,535,762 |
|
Euroseas Ltd.Unaudited
Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)
|
Six Months Ended June 30, |
Six Months Ended June 30, |
2023 |
|
2024 |
|
|
|
|
Cash flows from operating activities: |
|
Net income |
57,632,915 |
|
60,750,732 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
Vessel depreciation |
10,888,582 |
|
12,262,011 |
|
Amortization of deferred charges |
192,381 |
|
250,136 |
|
Share-based compensation |
680,294 |
|
711,120 |
|
Gain on sale of vessel |
(5,158,370 |
) |
(5,690,794 |
) |
Unrealized (gain) / loss on derivatives |
3,294,851 |
|
(783,028 |
) |
Amortization of fair value of below market time charters
acquired |
(7,637,224 |
) |
(2,463,552 |
) |
Changes in operating assets and liabilities |
(93,621 |
) |
(5,640,294 |
) |
Net cash provided by operating activities |
59,799,808 |
|
59,396,331 |
|
|
|
|
Cash flows from investing activities: |
|
|
Cash paid for vessels under construction |
(78,087,935 |
) |
(122,008,208 |
) |
Cash paid for vessel acquisitions and vessel improvements |
(194,545 |
) |
(3,061,029 |
) |
Net proceeds from sale a vessel |
10,100,598 |
|
10,146,400 |
|
Net cash used in investing activities |
(68,181,882 |
) |
(114,922,837 |
) |
|
|
|
Cash flows from financing activities: |
|
|
Cash paid for share repurchase |
(2,206,846 |
) |
- |
|
Dividends paid |
(6,952,895 |
) |
(8,309,042 |
) |
Loan arrangement fees paid |
(481,000 |
) |
(1,230,894 |
) |
Proceeds from long-term bank loans |
52,000,000 |
|
94,000,000 |
|
Repayment of long-term bank loans |
(27,145,000 |
) |
(16,936,765 |
) |
Offering expenses paid |
(56,877 |
) |
- |
|
Net cash provided by financing activities |
15,157,382 |
|
67,523,299 |
|
|
|
|
Net increase in cash, cash equivalents and restricted cash |
6,775,308 |
|
11,996,793 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
31,438,506 |
|
64,316,298 |
|
Cash, cash equivalents and restricted cash at end of
period |
38,213,814 |
|
76,313,091 |
|
Cash breakdown
Cash and cash equivalents |
31,841,476 |
69,693,515 |
Restricted cash, current |
972,338 |
19,576 |
Restricted cash, long-term |
5,400,000 |
6,600,000 |
Total cash, cash equivalents and restricted cash shown in
the statement of cash flows |
38,213,814 |
76,313,091 |
|
|
|
Euroseas Ltd.
Reconciliation of Net income to Adjusted EBITDA
(All amounts expressed in U.S. Dollars)
|
Three Months EndedJune 30,
2023 |
Three Months EndedJune 30,
2024 |
Six Months EndedJune 30,
2023 |
Six Months EndedJune 30,
2024 |
Net income |
28,875,661 |
|
40,748,559 |
|
57,632,915 |
|
60,750,732 |
|
Interest and other financing costs, net (incl. interest
income) |
934,294 |
|
1,722,793 |
|
1,590,617 |
|
2,975,554 |
|
Vessel depreciation |
5,616,645 |
|
6,820,674 |
|
10,888,582 |
|
12,262,011 |
|
Gain on sale of vessel |
- |
|
(5,690,794 |
) |
(5,158,370 |
) |
(5,690,794 |
) |
Gain on interest rate swap derivatives, net |
(987,883 |
) |
(117,701 |
) |
(743,633 |
) |
(980,707 |
) |
Amortization of below market time charters acquired |
(3,839,709 |
) |
(1,231,776 |
) |
(7,637,224 |
) |
(2,463,552 |
) |
Adjusted EBITDA |
30,599,008 |
|
42,251,755 |
|
56,572,887 |
|
66,853,244 |
|
Adjusted EBITDA
Reconciliation:Euroseas Ltd. considers Adjusted EBITDA to
represent net income before interest and other financing costs,
income taxes, depreciation, gain on interest rate swap derivatives,
net, gain on sale of vessel 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 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 on
interest rate swaps, gain on sale of vessel, 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 income to Adjusted net
income(All amounts expressed in U.S. Dollars –
except share data and number of shares)
|
Three Months EndedJune 30,
2023 |
Three Months EndedJune 30,
2024 |
Six Months EndedJune
30, 2023 |
Six Months EndedJune 30,
2024 |
Net income |
28,875,661 |
|
40,748,559 |
|
57,632,915 |
|
60,750,732 |
|
Unrealized loss / (gain) on derivatives |
2,693,251 |
|
(19,679 |
) |
3,294,851 |
|
(783,029 |
) |
Amortization of below market time charters acquired |
(3,839,709 |
) |
(1,231,776 |
) |
(7,637,224 |
) |
(2,463,552 |
) |
Gain on sale of vessel |
- |
|
(5,690,794 |
) |
(5,158,370 |
) |
(5,690,794 |
) |
Vessel depreciation on the portion of the consideration of vessels
acquired with attached time charters allocated to below market time
charters |
1,292,974 |
|
497,062 |
|
2,571,745 |
|
994,124 |
|
Adjusted net income |
29,022,177 |
|
34,303,372 |
|
50,703,917 |
|
52,807,481 |
|
Adjusted earnings per share, basic |
4.19 |
|
4.95 |
|
7.29 |
|
7.63 |
|
Weighted average number of shares, basic |
6,919,716 |
|
6,923,331 |
|
6,958,748 |
|
6,923,331 |
|
Adjusted earnings per share, diluted |
4.17 |
|
4.92 |
|
7.26 |
|
7.57 |
|
Weighted average number of shares, diluted |
6,956,447 |
|
6,978,682 |
|
6,985,422 |
|
6,973,973 |
|
Adjusted net income and Adjusted
earnings per share Reconciliation:Euroseas Ltd. considers
Adjusted net income to represent net income before unrealized loss
/ (gain) on derivatives, gain on sale of vessel, amortization of
below market time charters acquired, and vessel depreciation on the
portion of the consideration of vessels acquired with attached time
charters allocated to below market time charters. 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 the aforementioned items, 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. Adjusted net income and Adjusted
earnings per share are not adjusted for all non-cash income and
expense items that are reflected in our statement of cash
flows.
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 23 vessels, including
16 Feeder containerships and 7 Intermediate containerships.
Euroseas 23 containerships have a cargo capacity of 67,073 teu.
After the delivery of two feeder containership newbuildings in the
first quarter of 2025, Euroseas’ fleet will consist of 25 vessels
with a total carrying capacity of 72,673 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 BornozisMarkella
KaraCapital Link, Inc.230 Park Avenue, Suite 1540New York, NY
10169Tel. (212) 661-7566E-mail: euroseas@capitallink.com |
1 Adjusted 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 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.
Euroseas (NASDAQ:ESEA)
過去 株価チャート
から 8 2024 まで 9 2024
Euroseas (NASDAQ:ESEA)
過去 株価チャート
から 9 2023 まで 9 2024