Name Type Dwt TEU Year Employment TCE Rate
Built ($/day)
------------- ------------ ------- ----- ---- --------- ---------
Dry Bulk
Vessels
------------- ------------ ------- ----- ---- --------- ---------
IRINI Panamax 69,734 1988 Baumarine $17,000 to
Pool - 'til $20,000
end 2008
------------- ------------ ------- ----- ---- --------- ---------
M/V ARISTIDES
N.P. Panamax 69,268 1993 Spot
------------- ------------ ------- ----- ---- --------- ---------
NIKOLAOS P. Handysize 34,750 1984 Spot
------------- ------------ ------- ----- ---- --------- ---------
ARIEL Handysize 33,712 1977 Spot
------------- ------------ ------- ----- ---- --------- ---------
Total Dry
Bulk Vessels 4 207,464
------------- ------------ ------- ----- ---- --------- ---------
Multipurpose
Dry Cargo
Vessels
------------- ------------ ------- ----- ---- --------- ---------
Tasman Trader 1 22,568 950 1990 TC 'til $8,850 'til
Mar-12 Dec-08,
$9,950 'til
Dec-10,
$9,000 'til
Mar-12
------------- ------------ ------- ----- ---- --------- ---------
Container
Carriers
------------- ------------ ------- ----- ---- --------- ---------
ARTEMIS Intermediate 29,693 2,098 1987 TC 'til $19,000
Dec-08
------------- ------------ ------- ----- ---- --------- ---------
YM XINGANG I Handysize 23,596 1,599 1993 TC 'til $26,650
Jul-09
------------- ------------ ------- ----- ---- --------- ---------
YM QINGDAO I Feeder 18,253 1,269 1990 TC 'til $11,900
Mar-07
------------- ------------ ------- ----- ---- --------- ---------
KUO HSIUNG Feeder 18,154 1,269 1993 TC 'til $12,000
Nov-07
------------- ------------ ------- ----- ---- --------- ---------
Total
Container
Carriers 4 89,696 6,235
------------- ------------ ------- ----- ---- --------- ---------
Fleet Grand
Total 9 319,728 7,185
------------- ------------ ------- ----- ---- --------- ---------
Euroseas employs its vessels in the spot and time charter market and
through pool arrangements. Presently, our four containerships and our
multipurpose vessel are employed under time charters.. Three of our drybulk
vessels are under spot charters, while our panamax vessel, M/V "Irini", is
employed in the Baumarine pool that is managed by Klaveness, a major global
charterer in the drybulk area, and also participates in three "short" funds
(contracts to carry cargo at agreed rates), minimizing its exposure to the
spot market (covered at 102% in 2006, 77% for 2007 and 42% for 2008,
approximately).
As of today, approximately 56% of our capacity days in 2007 and 41% of our
2008 days are fixed under time charter contracts or protected from market
fluctuations.
Summary Fleet Data:
3 Months 9 Months 3 Months 9 Months
ended ended ended ended
September September September September
30, 2005 30, 2005 30, 2006 30, 2006
========= ========= ========= =========
FLEET DATA
Number of vessels 7.00 7.00 7.35 7.91
Calendar days 644.0 1911.0 676.0 2159.0
Available days 644.0 1886.0 652.0 2111.9
Voyage days 608.6 1848.0 628.3 2083.9
Utilization Rate 94.5% 98.0% 96.4% 98.7%
AVERAGE DAILY RESULTS (usd/day)
Average TCE rate 16,848 18,374 14,536 13,766
Running Cost 3,186 3,309 3,682 3,520
Management Fee 722 749 784 761
G&A Expenses 203 68 350 351
Total Operating Expenses 4,112 4,126 4,816 4,632
========= ========= ========= =========
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of
calendar days each vessel was a part of our 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. 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) 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
off-hire days associated with scheduled repairs, drydockings or special or
intermediate surveys. The shipping industry uses available days to measure
the number of days in a period during which vessels were available to
generate revenues.
(4) 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
off-hire days associated with scheduled and unscheduled repairs,
drydockings or special or intermediate surveys or days waiting to find
employment or other offhire. The shipping industry uses voyage days to
measure the number of days in a period during which vessels actually
generate revenues.
(5) 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. The shipping industry uses 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.
(6) 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 consistent with industry standards and is determined by
dividing revenue generated from voyage charters net of voyage expenses by
available 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, as well as commissions. 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.
(7) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs
are calculated by dividing vessel operating expenses by fleet calendar days
for the relevant time period.
(8) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period.
(9) 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 and general and administrative expenses. Daily TVOE is
calculated by dividing TVOE by fleet calendar days for the relevant time
period.
Conference Call and Webcast:
Tuesday, November 21, 2006, at 11:00 a.m. EST, Euroseas' management will
host a conference call to discuss the results.
Conference Call details:
On November 21, 2006, starting at 10:50 a.m. EST, participants should call
the following numbers: 1 866 819 7111 (from the US), 0800 953 0329 (from
the UK) or + 44(0) 1452 542 301 (from outside the US). Please quote
"Euroseas"
In case of any problem with the above numbers, please dial 1 866 869 2352
(from the US), 0800 694 1449 (from the UK) or + 44 (0) 1452 560 304 (from
outside the US). Quote "Euroseas."
A recording of the conference call will be available until November 28,
2006 by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK)
or + 44 1452 550 000 (from outside the US). Access Code: 6973591 #
Audio webcast - Slides Presentation:
There will be a live and then archived audio webcast of the conference
call, via the internet through the Euroseas website (www.euroseas.gr).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
A slides presentation on the third Quarter 2006 Results in PDF format will
also be available 30 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.
Consolidated Statement of Operations
(All amounts expressed in U.S. Dollars)
Three Months Three Months
Ended Ended
September 30 September 30
2005 2006
(unaudited) (unaudited)
Revenues
Voyage revenue 10,257,769 9,280,725
Commissions (507,672) (384,437)
Net revenues 9,750,097 8,896,288
Operating expenses
Voyage expenses 4,321 148,018
Vessel operating expenses 2,051,890 2,488,781
General & Administrative Expenses 130,864 236,341
Management fees 465,080 530,292
Amortization and depreciation 982,026 1,794,682
Net gain on sale of vessel 0 (2,280,057)
Total operating expenses 3,634,181 2,918,057
Operating income 6,115,916 5,978,231
Other income/(expenses)
Interest and finance cost (563,543) (867,004)
Derivative gain/(loss) (18,000) 0
Foreign exchange (loss)/gain 227 943
Interest income 159,002 250,210
Other income (expenses), net (422,314) (615,851)
Net income 5,693,602 5,362,380
Earnings per share - basic and diluted 0.52 0.43
Weighted average number of shares 10,860,080 12,620,114
Euroseas Ltd.
Consolidated Statement of Operations
(All amounts expressed in U.S. Dollars)
Nine Months Nine Months
Ended Ended
September 30 September 30
2005 2006
(unaudited) (unaudited)
Revenues
Voyage revenue 34,091,505 29,701,945
Commissions (1,847,900) (1,280,405)
Net revenues 32,243,605 28,421,540
Operating expenses
Voyage expenses 136,224 1,014,383
Vessel operating expenses 6,322,677 7,599,948
General & Administrative Expenses 130,864 758,281
Management fees 1,430,464 1,643,142
Amortization and depreciation 2,806,348 4,989,757
Net gain on sale of vessel 0 (4,455,856)
Total operating expenses 10,826,577 11,559,655
Operating income 21,417,028 16,861,885
Other income/(expenses)
Interest and finance cost (1,109,262) (2,258,950)
Derivative gain/(loss) (100,029) 0
Foreign exchange (loss)/gain 539 (1,064)
Interest income 248,700 720,551
Other income (expenses), net (960,052) (1,539,463)
Net income 20,456,976 15,322,422
Earnings per share - basic and diluted 1.99 1.23
Weighted average number of shares 10,860,080 12,620,114
Euroseas Ltd.
Consolidated Balance Sheet
(All amounts expressed in U.S. Dollars)
As of As of
December June
31, 2005 30, 2006
ASSETS (audited) (unaudited)
Current Assets:
Cash and cash equivalents 20,447,301 14,057,280
Trade accounts receivables, net 46,118 11,557
Claims and other receivables 306,303 238,907
Due from related company 3,012,720 1,159,220
Inventories 371,691 561,390
Prepaid expenses 85,625 431,943
Restricted cash 1,080,949 1,355,080
Total current assets 25,350,707 17,815,377
Fixed assets:
Vessels, net including vessels
held for sale 52,334,897 79,955,698
Other long-term assets
Deferred charges, net 1,855,829 1,479,444
Total Long-term Assets 54,190,726 81,435,142
Total assets 79,541,433 99,250,519
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Long-term debt, current portion 14,430,000 14,390,000
Trade accounts payable 837,182 1,325,267
Accrued liabilities 1,777,637 844,877
Deferred revenues 1,370,058 975,711
Fair value of below market
time charters acquired - 1,279,766
Total current liabilities 18,414,877 18,815,621
Long-term liabilities
Long-term debt, net of current portion 34,130,000 44,520,000
Total long-term liabilities 34,130,000 44,520,000
Total Liabilities 52,544,877 63,335,621
Commitments and contingencies
Shareholders' equity:
Common stock (par value $0.01, 100,000,000
shares authorized, 36,781,159 and
37,860,341 issued and outstanding) 367,812 378,603
Preferred shares (par value $0.01,
20,000,000 shares authorized,
no shares issued and outstanding) - -
Additional paid-in capital 17,883,781 18,283,769
Retained earnings 8,744,963 17,252,526
Total shareholders' equity 26,996,556 35,914,898
Total liabilities and
shareholders' equity 79,541,433 99,250,519
Adjusted EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before
interest, taxes, depreciation, amortization and gains (or losses) from sale
of vessels. Adjusted EBITDA does not represent and should not be considered
as an alternative to net income or cash flow from operations, as determined
by United States generally accepted accounting principles, or U.S. GAAP,
and our calculation of Adjusted EBITDA may not be comparable to that
reported by other companies. Adjusted EBITDA is included herein because it
is a basis upon which we assess our liquidity position and because we
believe that it presents useful information to investors regarding a
company's ability to service and/or incur indebtedness. 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 EBITDA
(All amounts expressed in U.S. Dollars)
Three Months Three Months
Ended Ended
September September
30, 2005 30, 2006
--------- ---------
Net income 5,693,602 5,362,380
--------- ---------
Interest and finance costs, net
(incl. Interest Income) 404,541 616,794
--------- ---------
Depreciation and amortization 982,026 1,794,682
--------- ---------
Amortization of Fair value of
the below market time charter acquired - (286,566)
--------- ---------
Adjusted EBITDA 7,080,169 7,487,290
========= =========
Euroseas Ltd.
Reconciliation of Net Income to Adjusted EBITDA
(All amounts expressed in U.S. Dollars)
Nine Months Nine Months
Ended Ended
September September
30, 2005 30, 2006
---------- ----------
Net income 20,456,976 15,322,422
---------- ----------
Interest and finance costs, net
(incl. Interest Income) 860,562 1,538,399
---------- ----------
Depreciation and amortization 2,806,348 4,989,757
---------- ----------
Amortization of Fair value of
the below market time charter acquired - (369,806)
---------- ----------
Adjusted EBITDA 24,123,886 21,480,772
========== ==========
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 135 years. Euroseas trades on the OTCBB under the ticker EUSEF.OB;
until October 5, 2006 it traded under the previous ticker symbol, ESEAF.OB.
Euroseas operates in the dry cargo, drybulk and container shipping markets.
Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000
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.
Following the acquisition of the M/V YM Xingang I, the Company has a fleet
of 9 vessels, including 2 Panamax drybulk carriers, 2 Handysize drybulk
carriers, 1 Intermediate container ship, 1 Handysize container ship, 2
Feeder container ships and a multipurpose dry cargo vessel. Euroseas' 4
drybulk carriers have a total cargo capacity of 207,464 dwt, its 4
container ships have a cargo capacity of 6,235 teu and its 1 multipurpose
vessel has a cargo capacity of 22,568 dwt or 950 teu.
Forward-Looking Statement
This 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
drybulk carriers, container ships and multipurpose vessels, competitive
factors in the market in which the Company operates; risks associated with
operations outside the United States; and other factors listed from time to
time in the Company's filings with the Securities and Exchange Commission.
The Company expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or circumstances on
which any statement is based.
Contact Information: Visit our website www.euroseas.gr Company Contact Tasos Aslidis Chief Financial Officer Euroseas Ltd. 2693 Fair View Drive Mountainside, NJ 07092 Tel. (908) 301-9091 E-mail: aha@euroseas.gr Investor Relations / Financial Media Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com