Euroseas Ltd. Reports Results for the Nine-Month Period and Quarter Ended September 30, 2024, Declares Quarterly Dividend and Announces Order for the Construction of Two Fuel-Efficient 4,300 TEU Containerships
Euroseas reported strong Q3 2024 financial results with total net revenues of $54.1 million and net income of $27.6 million ($3.97 per share). The company declared a quarterly dividend of $0.60 per share, payable December 17, 2024. Key highlights include an average time charter rate of $26,446 per day across 23 vessels, and adjusted EBITDA of $36.1 million. The company ordered two new fuel-efficient 4,300 TEU containerships for $60 million each, with delivery scheduled for Q4 2027. Through November 2024, Euroseas repurchased 414,367 shares for $8.8 million under its $20 million share repurchase program.
Euroseas ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con ricavi netti totali di 54,1 milioni di dollari e un utile netto di 27,6 milioni di dollari (3,97 dollari per azione). L'azienda ha dichiarato un dividendo trimestrale di 0,60 dollari per azione, che sarà pagato il 17 dicembre 2024. Tra i punti salienti ci sono una tariffa media di charter di 26.446 dollari al giorno per 23 navi e un EBITDA rettificato di 36,1 milioni di dollari. L'azienda ha ordinato due nuove portacontainer a basso consumo di 4.300 TEU per 60 milioni di dollari ciascuna, con consegna prevista per il quarto trimestre del 2027. Fino a novembre 2024, Euroseas ha riacquistato 414.367 azioni per 8,8 milioni di dollari nell'ambito del suo programma di riacquisto di azioni da 20 milioni di dollari.
Euroseas reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos netos totales de 54,1 millones de dólares y una ganancia neta de 27,6 millones de dólares (3,97 dólares por acción). La empresa declaró un dividendo trimestral de 0,60 dólares por acción, que se pagará el 17 de diciembre de 2024. Entre los puntos destacados se incluyen una tarifa media de fletamento de 26.446 dólares por día en 23 buques y un EBITDA ajustado de 36,1 millones de dólares. La empresa ordenó dos nuevos buques portacontenedores de 4.300 TEU, eficientes en combustible, por 60 millones de dólares cada uno, con entrega programada para el cuarto trimestre de 2027. Hasta noviembre de 2024, Euroseas ha recomprado 414.367 acciones por 8,8 millones de dólares bajo su programa de recompra de acciones de 20 millones de dólares.
유로씨스는 2024년 3분기 동안 총 순수익 5,410만 달러와 순이익 2,760만 달러(주당 3.97달러)를 기록하며 강력한 재무 실적을 발표했습니다. 이 회사는 1주당 0.60달러의 분기 배당금을 선언했으며, 이는 2024년 12월 17일에 지급될 예정입니다. 주요 하이라이트로는 23척의 선박에서의 평균 타임 차터 요금이 하루 26,446달러이고 조정 EBITDA가 3,610만 달러인 점이 있습니다. 회사는 각각 6,000만 달러에 연료 효율이 좋은 4,300 TEU 컨테이너선 2척을 주문했으며, 이는 2027년 4분기에 인도될 예정입니다. 2024년 11월까지 유로씨스는 20,000만 달러의 자사주 매입 프로그램에 따라 88만 달러에 414,367주를 다시 매입했습니다.
Euroseas a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus nets totaux de 54,1 millions de dollars et un bénéfice net de 27,6 millions de dollars (3,97 dollars par action). L'entreprise a déclaré un dividende trimestriel de 0,60 dollar par action, payable le 17 décembre 2024. Les faits marquants incluent un taux moyen de charter de 26 446 dollars par jour pour 23 navires, ainsi qu'un EBITDA ajusté de 36,1 millions de dollars. L'entreprise a commandé deux nouveaux porte-conteneurs économes en carburant de 4 300 TEU pour 60 millions de dollars chacun, avec une livraison prévue au quatrième trimestre 2027. Jusqu'en novembre 2024, Euroseas a racheté 414 367 actions pour 8,8 millions de dollars dans le cadre de son programme de rachat d'actions de 20 millions de dollars.
Euroseas berichtete im dritten Quartal 2024 von starken finanziellen Ergebnissen mit einem Gesamtnettoergebnis von 54,1 Millionen US-Dollar und einem Nettoergebnis von 27,6 Millionen US-Dollar (3,97 US-Dollar pro Aktie). Das Unternehmen erklärte eine vierteljährliche Dividende von 0,60 US-Dollar pro Aktie, die am 17. Dezember 2024 ausgezahlt wird. Zu den wichtigsten Höhepunkten gehören ein durchschnittlicher Zeitcharterpreis von 26.446 US-Dollar pro Tag für 23 Schiffe und ein bereinigtes EBITDA von 36,1 Millionen US-Dollar. Das Unternehmen bestellte zwei neue Kraftstoffeffiziente Containerschiffe mit einer Kapazität von 4.300 TEU zu je 60 Millionen US-Dollar, deren Lieferung für das vierte Quartal 2027 geplant ist. Bis November 2024 hat Euroseas 414.367 Aktien für insgesamt 8,8 Millionen US-Dollar im Rahmen seines Aktienrückkaufprogramms über 20 Millionen US-Dollar zurückgekauft.
- Net income of $27.6 million in Q3 2024
- Revenue increase to $54.1 million, up 6.9% YoY
- Quarterly dividend of $0.60 per share declared
- Strong adjusted EBITDA of $36.1 million
- Fleet expansion with two new vessel orders
- 12% lower time charter rates compared to Q3 2023
- Increased interest costs from $2.7M to $4.2M YoY
- $0.4 million net loss on interest rate swap contract
ATHENS, Greece, Nov. 20, 2024 (GLOBE NEWSWIRE) -- 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 nine-month periods ended September 30, 2024.
Third Quarter 2024 Financial Highlights:
- Total net revenues of
$54.1 million . Net income of$27.6 million or$3.97 and$3.95 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was$27.4 million or$3.94 and$3.92 per share basic and diluted. - Adjusted EBITDA1 was
$36.1 million . - An average of 23.0 vessels were owned and operated during the third quarter of 2024 earning an average time charter equivalent rate of
$26,446 per day. - Declared a quarterly dividend of
$0.60 per share for the third quarter of 2024 payable on or about December 17, 2024 to shareholders of record on December 9, 2024 as part of the Company’s common stock dividend plan. - As of November 20, 2024 we had repurchased 414,367 of our common stock in the open market for a total of about
$8.8 million , under our share repurchase plan of up to$20 million announced in May 2022.
Recent developments:
In November 2024, the Company concluded a contract for the construction of two modern fuel-efficient container vessels each to be built at Jiangsu Yangzi Xinfu Shipbuilding CO., Ltd., in China. The vessels are scheduled to be delivered during the fourth quarter of 2027. The total consideration for each of these two newbuilding contracts is approximately
Nine Months 2024 Financial Highlights:
- Total net revenues of
$159.6 million . Net income of$88.4 million or$12.75 and$12.66 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was$80.2 million or$11.57 and$11.49 per share basic and diluted, respectively. - Adjusted EBITDA1 was
$102.9 million . - An average of 21.3 vessels were owned and operated during the first nine months of 2024 earning an average time charter equivalent rate of
$28,624 per day.
________________________
1 Adjusted EBITDA, Adjusted net income and Adjusted earnings 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 third quarter of 2024, the containership markets remained around the levels reached during the first half of the year although chartering activity slowed down. However, in October and through mid-November 2024, the market has strengthened and charterers’ interest in concluding charters, many of them with forward fixings, increased. As already announced, we managed to charter at very profitable rates not only three of our newbuildings, two of which are to be delivered in January 2025, but also two of our elder, 23-year old feeders, for periods of about three years for the newbuilds and between fourteen and eighteen months for the 23-year olds.
“The main challenge the containership sector has to overcome is the relatively high orderbook as a percentage of the fleet. However, this orderbook is concentrated in larger vessels sizes. On the contrary, the orderbook for the feeder and intermediate segments, within which we operate, is very modest against a fleet age profile that includes a high percentage of vessels older than twenty years, thus resulting in expectations of minimal fleet growth or, even, fleet declines. Within a market that continues to be strong and has a significant charter backlog, we expect our earnings to continue being strong and our cash reserves to continue increasing as indicated by our results for the third quarter of 2024.
“Given the above fleet dynamics in our segments and our increasing cash reserves, over and above our dividend distribution and share repurchase program needs, we decided to extend our newbuilding program by ordering two 4300 teu vessels with delivery in 2027 strengthening our position in this segment. We remain diligent in identifying accretive investment opportunities and committed to generating returns to our shareholders.’
Tasos Aslidis, Chief Financial Officer of Euroseas commented:
“In the third quarter of 2024 the Company operated an average of 23.0 vessels, versus 19.0 vessels during the same period last year. Our net revenues increased to
Adjusted EBITDA during the third quarter of 2024 was
As of September 30, 2024, our outstanding debt (excluding the unamortized loan fees) was
Third Quarter 2024 Results:
For the third quarter of 2024, the Company reported total net revenues of
Vessel operating expenses for the third quarter of 2024 amounted to
Depreciation expense for the third quarter of 2024 amounted to
In the third quarter of 2023 the Company recorded an impairment charge of
Related party management fees for the three months ended September 30, 2024, were
General and administrative expenses amounted to
In the third quarter of 2024 one of our vessels entered drydock to commence her special survey, that was completed in the following quarter, for a total cost of
In the third quarter of 2023, a gain on time charter agreements termination of
Finally, in the third quarter of 2023, we had other operating income of
Total interest and other financing costs for the third quarter of 2024 amount to
For the three months ended September 30, 2024, the Company recognized a
Adjusted EBITDA1 for the third quarter of 2024 increased to
Basic and diluted earnings per share for the third quarter of 2024 were
The adjusted earnings attributable to common shareholders for the quarter ended September 30, 2024 would have been
Nine Months 2024 Results:
For the first nine months of 2024, the Company reported total net revenues of
Vessel operating expenses for the nine-month period of 2024 amounted to
Depreciation expense for the first nine months of 2024 was
For the nine months of 2023, the Company recorded an impairment charge of
Related party management fees for the nine months ended September 30, 2024, were
General and administrative expenses amounted to
In the first nine months of 2024 four of our vessels completed their special survey with drydock and another one entered the shipyard to complete its special survey in the fourth quarter of 2024 for a total cost of approximately
In the first nine months of 2023, a gain on time charter agreements termination of
The results of the Company for the nine months of 2024 include a
Finally, during the nine-month period of 2023, we had other operating income of
Total interest and other financing costs for the first nine months of 2024 amount to
For the nine months ended September 30, 2024 the Company recognized a
Adjusted EBITDA1 for the first nine months of 2024 was
Basic and diluted earnings per share for the first nine months of 2024 were
The adjusted earnings per share for the nine-month period ended September 30, 2024 would have been
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 TC until Aug-25 | ||
| SYNERGY BUSAN(*) | Intermediate | 50,726 | 4,253 | 2009 | TC until Dec-24 then until Dec-27 | ||
| SYNERGY ANTWERP(*) | Intermediate | 50,726 | 4,253 | 2008 | TC until Mar-25 | ||
| SYNERGY OAKLAND(*) | Intermediate | 50,787 | 4,253 | 2009 | TC until May-26 | ||
| SYNERGY KEELUNG(*) | Intermediate | 50,969 | 4,253 | 2009 | TC until Apr-25 | ||
| EMMANUEL P(*) | Intermediate | 50,796 | 4,250 | 2005 | TC until Apr-25 | ||
| RENA P(*) | Intermediate | 50,796 | 4,250 | 2007 | TC until Apr-25 | ||
| EM KEA(*) | Feeder | 42,165 | 3,100 | 2007 | TC until May-26 | ||
| GREGOS(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Apr-26 | ||
| TERATAKI(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Jul-26 | ||
| TENDER SOUL(*) | Feeder | 37,237 | 2,800 | 2024 | TC until Dec-24 Then until Oct-27 | ||
| LEONIDAS Z(*) | Feeder | 37,237 | 2,800 | 2024 | TC until Mar-26 | ||
| EVRIDIKI G(*) | Feeder | 34,677 | 2,556 | 2001 | TC until Feb-25 then until Apr-26 | ||
| EM CORFU(*) | Feeder | 34,654 | 2,556 | 2001 | TC until Feb-25 then until Aug-26 | ||
| DIAMANTIS P(*) | Feeder | 30,360 | 2,008 | 1998 | TC until Nov-24 | ||
| STEPHANIA K(*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-26 | ||
| EM SPETSES(*) | Feeder | 23,224 | 1,740 | 2007 | TC until Feb-26 | ||
| JONATHAN P(*) | Feeder | 23,357 | 1,740 | 2006 | TC until Sep-25 | ||
| EM HYDRA(*) | Feeder | 23,351 | 1,740 | 2005 | TC until Mar-25 | ||
| JOANNA(*)(***) | Feeder | 22,301 | 1,732 | 1999 | TC until Mar-26, then until Sep-26, then until Nov-26 | ||
| MONICA(*) | Feeder | 22,262 | 1,800 | 2024 | TC-until May-25 | ||
| PEPI STAR(*) | Feeder | 22,262 | 1,800 | 2024 | TC until Jun-26 | ||
| AEGEAN EXPRESS(*) | Feeder | 18,581 | 1,439 | 1997 | TC until Dec-24 | ||
| Total Container Carriers on the Water | 23 | 846,172 | 67,073 | ||||
| Vessels under construction | Type | Dwt | TEU | To be delivered | Employment | TCE Rate ($/day) | |
| DEAR PANEL (H4251) | Feeder | 37,237 | 2,800 | Q1 2025 | TC until Nov-27 | ||
| SYMEON P (H4252) | Feeder | 37,237 | 2,800 | Q1 2025 | TC until Nov-27 | ||
| ELENA (H1711) | Intermediate | 55,200 | 4,300 | Q4 2027 | |||
| NIKITAS G (H1712) | Intermediate | 55,200 | 4,300 | Q4 2027 | |||
| Total under construction | 4 | 184,874 | 14,200 | ||||
Notes:
(*) 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 (which are typically 5
(***) Period to Nov-2026 is at the option of the charterer.
Summary Fleet Data:
| Three Months, Ended September 30, 2023 | Three Months, Ended September 30, 2024 | Nine Months, Ended September 30, 2023 | Nine Months, Ended September 30, 2024 | |||||
| FLEET DATA | ||||||||
| Average number of vessels (1) | 19.0 | 23.0 | 18.0 | 21.3 | ||||
| Calendar days for fleet (2) | 1,742.0 | 2,098.0 | 4,913.0 | 5,816.0 | ||||
| Scheduled off-hire days incl. laid-up (3) | - | 10.9 | - | 110.2 | ||||
| Available days for fleet (4) = (2) - (3) | 1,742.0 | 2,087.1 | 4,913.0 | 5,705.8 | ||||
| Commercial off-hire days (5) | - | - | 28.9 | 3.7 | ||||
| Operational off-hire days (6) | 13.2 | 4.7 | 54.0 | 12.1 | ||||
| Voyage days for fleet (7) = (4) - (5) - (6) | 1,728.8 | 2,082.4 | 4,830.1 | 5,690.0 | ||||
| Fleet utilization (8) = (7) / (4) | 99.2 | % | 99.8 | % | 98.3 | % | 99.7 | % |
| Fleet utilization, commercial (9) = ((4) - (5)) / (4) | 100.0 | % | 100.0 | % | 99.4 | % | 99.9 | % |
| Fleet utilization, operational (10) = ((4) - (6)) / (4) | 99.2 | % | 99.8 | % | 98.9 | % | 99.8 | % |
| AVERAGE DAILY RESULTS (usd/day) | ||||||||
| Time charter equivalent rate (11) | 30,074 | 26,446 | 29,843 | 28,624 | ||||
| Vessel operating expenses excl. drydocking expenses (12) | 7,192 | 6,591 | 7,210 | 6,807 | ||||
| General and administrative expenses (13) | 500 | 658 | 648 | 645 | ||||
| Total vessel operating expenses (14) | 7,692 | 7,249 | 7,858 | 7,452 | ||||
| Drydocking expenses (15) | 70 | 392 | 229 | 1,384 | ||||
(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 us 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 compute 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:
Tomorrow, Thursday, November 21, 2024 at 8:30 a.m. Eastern Standard 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: 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 13750230.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 through 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 third quarter ended September 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 Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||
| 2023 | 2024 | 2023 | 2024 | |||||
| Revenues | ||||||||
| Time charter revenue | 52,315,773 | 55,375,268 | 145,087,450 | 163,958,883 | ||||
| Voyage Charter revenue | - | 473,055 | 473,055 | |||||
| Commissions | (1,649,542 | ) | (1,702,162 | ) | (4,789,013 | ) | (4,842,817 | ) |
Net revenues | 50,666,231 | 54,146,161 | 140,298,437 | 159,589,121 | ||||
| Operating expenses / (income) | ||||||||
| Voyage expenses | 323,596 | 777,998 | 942,882 | 1,561,278 | ||||
| Vessel operating expenses | 11,036,296 | 11,799,681 | 31,179,114 | 34,308,086 | ||||
| Drydocking expenses | 121,699 | 822,536 | 1,123,581 | 8,051,847 | ||||
| Vessel depreciation | 5,949,853 | 6,679,834 | 16,838,435 | 18,941,809 | ||||
| Related party management fees | 1,492,923 | 2,028,191 | 4,245,101 | 5,283,460 | ||||
| General and administrative expenses | 873,205 | 1,380,338 | 3,181,211 | 3,748,554 | ||||
| Impairment loss | 13,832,716 | - | 13,832,716 | - | ||||
| Other operating income | (216,321 | ) | - | (1,645,832 | ) | - | ||
| Gain on time charter agreements termination | (15,984,253 | ) | - | (15,984,253 | ) | - | ||
| Gain on sale of vessel | - | - | (5,158,370 | ) | (5,690,794 | ) | ||
| Total operating expenses, net | 17,429,714 | 23,488,578 | 48,554,585 | 66,204,240 | ||||
| Operating income | 33,236,517 | 30,657,583 | 91,743,852 | 93,384,881 | ||||
| Other (expenses) / income | ||||||||
| Interest and other financing costs | (1,830,213 | ) | (3,255,595 | ) | (3,917,612 | ) | (7,109,965 | ) |
| Gain / (loss) on derivatives, net | 388,848 | (436,869 | ) | 1,132,481 | 543,839 | |||
| Foreign exchange loss | (4,736 | ) | (29,862 | ) | (32,172 | ) | (11,546 | ) |
| Interest income | 409,334 | 697,836 | 906,116 | 1,576,652 | ||||
| Other income / (expenses), net | (1,036,767 | ) | (3,024,490 | ) | (1,911,187 | ) | (5,001,020 | ) |
Net income | 32,199,750 | 27,633,093 | 89,832,665 | 88,383,861 | ||||
| Weighted average number of shares outstanding, basic | 6,899,941 | 6,953,831 | 6,938,930 | 6,933,572 | ||||
| Earnings per share, basic | 4.67 | 3.97 | 12.95 | 12.75 | ||||
| Weighted average number of shares outstanding, diluted | 6,930,548 | 6,992,363 | 6,964,967 | 6,980,196 | ||||
| Earnings per share, diluted | 4.65 | 3.95 | 12.90 | 12.66 | ||||
| Euroseas Ltd. Unaudited Consolidated Condensed Balance Sheets (All amounts expressed in U.S. Dollars – except number of shares) | |||
| December 31, 2023 | September 30, 2024 | ||
| ASSETS | |||
| Current Assets: | |||
| Cash and cash equivalents | 58,613,304 | 77,340,745 | |
| Trade accounts receivable, net | 2,037,940 | 3,050,296 | |
| Other receivables | 2,276,116 | 2,129,644 | |
| Inventories | 2,538,342 | 3,126,708 | |
| Restricted cash | 2,994 | 46,825 | |
| Prepaid expenses | 502,833 | 956,869 | |
| Due from related company | - | 562,078 | |
| Derivatives | - | 224,479 | |
| Total current assets | 65,971,529 | 87,437,644 | |
| Fixed assets: | |||
| Vessels, net | 267,626,155 | 449,904,605 | |
| Long-term assets: | |||
| Advances for vessels under construction | 85,375,650 | 36,613,292 | |
| Restricted cash | 5,700,000 | 6,900,000 | |
| Total assets | 424,673,334 | 580,855,541 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Long-term bank loans, current portion | 30,839,541 | 37,593,237 | |
| Trade accounts payable | 5,746,510 | 4,003,235 | |
| Accrued expenses | 1,865,615 | 5,150,031 | |
| Accrued dividends | 105,250 | 197,075 | |
| Deferred revenue | 11,275,911 | 6,013,806 | |
| Due to related company | 1,298,941 | - | |
| Derivatives | 56,042 | - | |
| Total current liabilities | 51,187,810 | 52,957,384 | |
| Long-term liabilities: | |||
| Long-term bank loans, net of current portion | 99,161,871 | 180,421,099 | |
| Fair value of below market time charters acquired | 7,580,306 | 3,871,442 | |
| Derivatives | 168,138 | 200,793 | |
| Total long-term liabilities | 106,910,315 | 184,493,334 | |
| Total liabilities | 158,098,125 | 237,450,718 | |
| Shareholders’ equity: | |||
| Common stock (par value | 210,430 | 210,407 | |
| Additional paid-in capital | 258,434,237 | 259,504,848 | |
| Retained earnings | 7,930,542 | 83,689,568 | |
| Total shareholders’ equity | 266,575,209 | 343,404,823 | |
| Total liabilities and shareholders’ equity | 424,673,334 | 580,855,541 | |
| Euroseas Ltd. Unaudited Consolidated Condensed Statements of Cash Flows (All amounts expressed in U.S. Dollars) | ||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||
| 2023 | 2024 | |||
| Cash flows from operating activities: | ||||
| Net income | 89,832,665 | 88,383,861 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Vessel depreciation | 16,838,435 | 18,941,809 | ||
| Impairment loss | 13,832,716 | - | ||
| Amortization of deferred charges | 385,395 | 381,588 | ||
| Share-based compensation | 821,303 | 1,070,587 | ||
| Gain on sale of vessel | (5,158,370 | ) | (5,690,794 | ) |
| Amortization of fair value of below market time charters acquired | (10,123,567 | ) | (3,708,864 | ) |
| Gain on time charter agreements termination | (15,984,253 | ) | - | |
| Unrealized gain / (loss) on derivatives | 2,986,503 | (247,867 | ) | |
| Changes in operating assets and liabilities | (2,484,127 | ) | (6,243,946 | ) |
| Net cash provided by operating activities | 90,946,700 | 92,886,374 | ||
| Cash flows from investing activities: | ||||
| Cash paid for vessels under construction | (93,120,238 | ) | (153,615,913 | ) |
| Cash paid for vessel acquisitions and vessel improvements | (941,298 | ) | (4,544,086 | ) |
| Net proceeds from sale of a vessel | 10,100,598 | 10,146,400 | ||
| Net cash used in investing activities | (83,960,938 | ) | (148,013,599 | ) |
| Cash flows from financing activities: | ||||
| Cash paid for share repurchase | (3,145,435 | ) | - | |
| Dividends paid | (10,460,435 | ) | (12,533,010 | ) |
| Loan arrangement fees paid | (731,000 | ) | (1,398,700 | ) |
| Offering expenses paid | (102,896 | ) | - | |
| Proceeds from long- term bank loans | 92,000,000 | 114,400,000 | ||
| Repayment of long-term bank loans | (61,625,000 | ) | (25,369,793 | ) |
| Net cash provided by financing activities | 15,935,234 | 75,098,497 | ||
| Net increase in cash, cash equivalents and restricted cash | 22,920,996 | 19,971,272 | ||
| 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 | 54,359,502 | 84,287,570 | ||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||
| 2023 | 2024 | |||
| Cash breakdown | ||||
| Cash and cash equivalents | 48,341,257 | 77,340,745 | ||
| Restricted cash, current | 318,245 | 46,825 | ||
| Restricted cash, long term | 5,700,000 | 6,900,000 | ||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 54,359,502 | 84,287,570 | ||
Euroseas Ltd.
Reconciliation of Adjusted EBITDA to Net income
(All amounts expressed in U.S. Dollars)
| Three Months Ended September 30, 2023 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | |||||
| Net income | 32,199,750 | 27,633,093 | 89,832,665 | 88,383,861 | ||||
| Interest and other financing costs, net (incl. interest income) | 1,420,879 | 2,557,759 | 3,011,496 | 5,533,313 | ||||
| Vessel depreciation | 5,949,853 | 6,679,834 | 16,838,435 | 18,941,809 | ||||
| Impairment loss | 13,832,716 | - | 13,832,716 | - | ||||
| Gain on sale of vessel | - | - | (5,158,370 | ) | (5,690,794 | ) | ||
| Gain on time charter agreements termination | (15,984,253 | ) | - | (15,984,253 | ) | - | ||
| Amortization of fair value of below market time charters acquired | (2,486,343 | ) | (1,245,312 | ) | (10,123,567 | ) | (3,708,864 | ) |
| (Gain) / loss on interest rate swap derivatives, net | (388,848 | ) | 436,869 | (1,132,481 | ) | (543,839 | ) | |
Adjusted EBITDA | 34,543,754 | 36,062,243 | 91,116,641 | 102,915,486 | ||||
Adjusted EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net income before interest and other financing costs, income taxes, depreciation, impairment loss, (gain) / loss on interest rate swap derivatives, net, gain on sale of vessel, gain on time charter agreements termination and amortization of fair value 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 generally accepted accounting principles in the United States, 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, gain on sale of vessel, gain on time charter agreements termination, depreciation, impairment loss 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 Adjusted net income to Net income (All amounts expressed in U.S. Dollars – except share data and number of shares) | ||||||||
| Three Months Ended September 30, 2023 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | |||||
| Net income | 32,199,750 | 27,633,093 | 89,832,665 | 88,383,861 | ||||
| Unrealized (gain) / loss on derivatives | (308,348 | ) | 535,162 | 2,986,503 | (247,867 | ) | ||
| Impairment loss | 13,832,716 | - | 13,832,716 | - | ||||
| Gain on sale of vessel | - | - | (5,158,370 | ) | (5,690,794 | ) | ||
| Gain on time charter agreements termination | (15,984,253 | ) | - | (15,984,253 | ) | - | ||
| Amortization of fair value of below market time charters acquired | (2,486,343 | ) | (1,245,312 | ) | (10,123,567 | ) | (3,708,864 | ) |
| Vessel depreciation on portion of the consideration of vessels acquired with attached time charters allocated to below market time charters | 927,009 | 505,804 | 3,498,754 | 1,499,928 | ||||
| Adjusted net income | 28,180,531 | 27,428,747 | 78,884,448 | 80,236,264 | ||||
Adjusted earnings per share, basic | 4.08 | 3.94 | 11.37 | 11.57 | ||||
Weighted average number of shares, basic | 6,899,941 | 6,953,831 | 6,938,930 | 6,933,572 | ||||
Adjusted earnings per share, diluted | 4.07 | 3.92 | 11.33 | 11.49 | ||||
Weighted average number of shares, diluted | 6,930,548 | 6,992,363 | 6,964,967 | 6,980,196 | ||||
Adjusted net income and Adjusted earnings per share Reconciliation:
Euroseas Ltd. considers Adjusted net income to represent net income before unrealized (gain) / loss on derivatives, gain on sale of vessel, gain on time charter agreements termination, amortization of below market time charters acquired, impairment loss 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 noncash 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 and the two intermediate containership newbuildings in 2025 and 2027, respectively, Euroseas’ fleet will consist of 27 vessels with a total carrying capacity of 86,873 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 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 Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: aha@euroseas.gr | Nicolas Bornozis Markella Kara Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, NY 10169 Tel. (212) 661-7566 E-mail: euroseas@capitallink.com |
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