Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2021
Euroseas Ltd. (ESEA) reported strong financial results for Q4 2021, with total net revenues of $38.3 million, marking a 217.9% increase year-over-year. Net income reached $22.7 million, or $3.14 per share, compared to just $0.6 million in Q4 2020. For the full year, revenues totaled $93.9 million, reflecting a 76.2% increase, while net income amounted to $42.9 million, or $6.06 per share. The company also announced the construction of two new eco-friendly vessels, expected in late 2023 and early 2024, to strengthen its market presence amidst rising charter rates.
- Q4 2021 net income of $22.7 million, the highest in company history.
- Total net revenues increased to $38.3 million in Q4 2021 from $12.0 million in Q4 2020.
- Full year 2021 net income reached $42.9 million, a significant rise from $4.0 million in 2020.
- Adjusted EBITDA for Q4 2021 was $26.1 million, up from $2.1 million year-over-year.
- 92% of available capacity contracted for 2022, ensuring high profitability.
- Operating expenses increased by 7.6% in Q4 2021, driven by higher insurance premiums and crewing costs.
- Daily vessel operating expenses rose, despite the increase in revenues.
ATHENS, Greece, Feb. 15, 2022 (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-month period and full year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights:
- Total net revenues of
$38.3 million . Net income and net income attributable to common shareholders of$22.7 million or$3.14 and$3.13 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders1 for the period was$22.9 million or$3.18 and$3.17 per share basic and diluted, respectively. - Adjusted EBITDA1 was
$26.1 million . - An average of 15.01 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of
$29,994 per day.
Full Year 2021 Highlights:
- Total net revenues of
$93.9 million . Net income of$42.9 million ; net income attributable to common shareholders (after a$0.3 million dividend on Series B Preferred Shares and a$0.3 million of preferred deemed dividend arising out of the redemption of approximately$8.4 million of Series B Preferred Shares in the first half of 2021) of$42.3 million or$6.06 and$6.05 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders1 for the period was$42.0 million or$6.02 and$6.01 per share basic and diluted, respectively. - Adjusted EBITDA1 was
$52.7 million . - An average of 14.25 vessels were owned and operated during the year 2021, earning an average time charter equivalent rate of
$19,309 per day.
Recent developments
- On January 28, 2022, we signed a contract for the construction of two additional Eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2023 and first quarter of 2024, respectively. The total consideration for each of these two newbuilding contracts is approximately
$43.15 million and will be financed with a combination of debt and equity. The vessels are sisterships of a pair of vessels ordered by Euroseas Ltd. in June 2021.
_____________________________________________
1Adjusted 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:
“The fourth quarter of 2021 was a seminal one for Euroseas as we recorded the highest net income level in our history of about
“In light of the increased environmental regulation that would reduce -on average- the transportation capacity of the existing fleet, we have shifted our strategic focus on how to position Euroseas post-pandemic and beyond. In this context, in January 2022, we placed an order for two more 2,800 teu vessels that we expect to have delivered in the fourth quarter of 2023 and first quarter of 2024. This brings our newbuilding program to four vessels and solidifies our market presence in the large eco feeder sector.”
“The retreat of the containerships rates during November and December 2021 proved to be short-lived. With the turn of the year, containership rates started increasing again and have returned to -and for some segments exceeded- the record high levels set only four months ago in October 2021. We are quite optimistic about the strength of the market over the next couple of years despite the expected easing of the inefficiencies in ports, due to the limited deliveries in the near term and the constraints on effective fleet supply of the emissions regulations from 2023 onwards alongside trade growth which has rebounded from the pandemic lows. We continuously monitor market developments and evaluate investment opportunities focusing on creating consistent returns for our shareholders and exploiting our public listing and increasing liquidity position.”
Tasos Aslidis, Chief Financial Officer of Euroseas commented: “The operating results of the fourth quarter of 2021 reflect the increased levels of charter rates in the containership markets as compared to the same period of 2020, with net income amounting to
“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, were higher by
“As of December 31, 2021, our outstanding bank debt (excluding the unamortized loan fees) was
Fourth Quarter 2021 Results:
For the fourth quarter of 2021, the Company reported total net revenues of
Vessel operating expenses for the same period of 2021 amounted to
On average, 15.01 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of
Interest and other financing costs for the fourth quarter of 2021 amounted to
Adjusted EBITDA1 for the fourth quarter of 2021 was
Basic and diluted earnings per share attributable to common shareholders for the fourth quarter of 2021 was
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss on derivatives, the amortization of below market time charters acquired and the depreciation charged due to the increased value of the vessel acquired with below market time charter, the adjusted earnings attributable to common shareholders for the quarter ended December 31, 2021 would have been
Full Year 2021 Results:
For the full year of 2021, the Company reported total net revenues of
Vessel operating expenses for the twelve months of 2021 amounted to
Related party management fees for the twelve months of 2021 were
Drydocking expenses amounted to
On average, 14.25 vessels were owned and operated during the twelve months of 2021 earning an average time charter equivalent rate of
Interest and other financing costs for the twelve months of 2021 amounted to
Adjusted EBITDA1 for the twelve months of 2021 was
Basic and diluted earnings per share attributable to common shareholders for the twelve months of 2021 was
Excluding the effect on the income attributable to common shareholders for the twelve months of 2021 of the unrealized gain on derivatives, the amortization of the below market time charters acquired, the depreciation charged due to the increased value of the vessel acquired with below market time charter and the net loss on sale of vessel, the adjusted earnings attributable to common shareholders for the year ended December 31, 2021 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 plus 12 months option | option | |
| AKINADA BRIDGE (*) | Intermediate | 71,366 | 5,610 | 2001 | TC until Oct-22 | ||
| SYNERGY BUSAN (*) | Intermediate | 50,726 | 4,253 | 2009 | TC until Aug-24 | ||
| SYNERGY ANTWERP (+) | Intermediate | 50,726 | 4,253 | 2008 | TC until Dec-23 | ||
| SYNERGY OAKLAND (*) | Intermediate | 50,787 | 4,253 | 2009 | TC until Apr-22 then until Mar-26 | ||
| SYNERGY KEELUNG (+) | Intermediate | 50,969 | 4,253 | 2009 | TC until Jun-22 plus 8-12 months option | option | |
| EM KEA (*) | Feeder | 42,165 | 3,100 | 2007 | TC until May-23 | ||
| EM ASTORIA (+) | Feeder | 35,600 | 2,788 | 2004 | TC until Feb-22 then until Feb-23 then until Feb-24 then until Feb-25 | ||
| EVRIDIKI G (*) | Feeder | 34,677 | 2,556 | 2001 | TC until Feb-25 | ||
| EM CORFU (*) | Feeder | 34,654 | 2,556 | 2001 | TC until Feb-25 | ||
| DIAMANTIS P (*) | Feeder | 30,360 | 2,008 | 1998 | TC until Oct-24 | ||
| EM SPETSES (*) | Feeder | 23,224 | 1,740 | 2007 | TC until Aug-24 | ||
| JONATHAN P (*) | Feeder | 23,351 | 1,740 | 2006 | TC until Sep-24 | ||
| EM HYDRA (*) | Feeder | 23,351 | 1,740 | 2005 | TC until Apr-23 | ||
| JOANNA (*) | Feeder | 22,301 | 1,732 | 1999 | TC until Oct-22 | ||
| AEGEAN EXPRESS (*) | Feeder | 18,581 | 1,439 | 1997 | TC until Mar-22 | ||
| Total Container Carriers | 16 | 635,806 | 50,371 | ||||
| Vessels under construction | Type | Dwt | TEU | To be delivered |
| H4201 | Feeder | 37,237 | 2,800 | Q1 2023 |
| H4202 | Feeder | 37,237 | 2,800 | Q2 2023 |
| H4236 | Feeder | 37,237 | 2,800 | Q4 2023 |
| H4237 | Feeder | 37,237 | 2,800 | Q1 2024 |
Notes:
(*) TC denotes time charter. All dates listed are the earliest redelivery dates under each time charter 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
(***) The previous charter of M/V Synergy Oakland of
Summary Fleet Data:
| Three Months, Ended December 31, 2020 | Three Months, Ended December 31, 2021 | Twelve Months, Ended December 31, 2020 | Twelve Months, Ended December 31, 2021 | |||||
| FLEET DATA | ||||||||
| Average number of vessels (1) | 14.43 | 15.01 | 17.23 | 14.25 | ||||
| Calendar days for fleet (2) | 1,328.0 | 1,381.0 | 6,306.0 | 5,203.0 | ||||
| Scheduled off-hire days incl. laid-up (3) | 73.1 | 31.1 | 283.4 | 88.4 | ||||
| Available days for fleet (4) = (2) - (3) | 1,254.9 | 1,349.9 | 6,022.6 | 5,114.6 | ||||
| Commercial off-hire days (5) | 18.5 | - | 150.6 | - | ||||
| Operational off-hire days (6) | 46.6 | 20.5 | 118.1 | 77.2 | ||||
| Voyage days for fleet (7) = (4) - (5) - (6) | 1,189.8 | 1,329.4 | 5,753.9 | 5,037.4 | ||||
| Fleet utilization (8) = (7) / (4) | ||||||||
| Fleet utilization, commercial (9) = ((4) - (5)) / (4) | ||||||||
| Fleet utilization, operational (10) = ((4) - (6)) / (4) | ||||||||
| AVERAGE DAILY RESULTS (usd/day) | ||||||||
| Time charter equivalent rate (11) | 10,497 | 29,994 | 9,445 | 19,309 | ||||
| Vessel operating expenses excl. drydocking expenses (12) | 6,586 | 6,807 | 5,949 | 6,541 | ||||
| General and administrative expenses (13) | 578 | 901 | 482 | 671 | ||||
| Total vessel operating expenses (14) | 7,164 | 7,708 | 6,431 | 7,212 | ||||
| Drydocking expenses (15) | 75 | 866 | 85 | 787 | ||||
(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 with 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 rate, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.
(12) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses 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 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. TVOE is the sum of vessel operating expenses, 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) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method, divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.
Conference Call and Webcast:
Today, Tuesday, February 15, 2022 at 10:30 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: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Euroseas" to the operator.
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 on the fourth quarter ended December 31, 2021 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 December 31, | Three Months Ended December 31, | Twelve Months Ended December 31, | Twelve Months Ended December 31, | |||||
| 2020 | 2021 | 2020 | 2021 | |||||
| Revenues | ||||||||
| Time charter revenue | 12,532,549 | 39,999,276 | 55,681,124 | 97,979,667 | ||||
| Commissions | (499,174) | (1,745,138) | (2,378,007) | (4,085,717) | ||||
| Net revenues | 12,033,375 | 38,254,138 | 53,303,117 | 93,893,950 | ||||
| Operating expenses/ (income) | ||||||||
| Voyage expenses | 43,467 | 124,742 | 1,334,259 | 713,448 | ||||
| Vessel operating expenses | 7,501,283 | 8,307,463 | 32,219,689 | 29,739,437 | ||||
| Drydocking expenses | 99,093 | 1,195,712 | 536,199 | 4,094,693 | ||||
| Vessel depreciation | 1,604,139 | 2,413,569 | 6,605,976 | 7,203,198 | ||||
| Related party management fees | 1,244,394 | 1,093,684 | 5,293,199 | 4,294,789 | ||||
| Net (gain) / loss on sale of vessels | (1,148,720) | - | (2,453,736) | 9,417 | ||||
| General and administrative expenses | 767,229 | 1,244,023 | 3,041,435 | 3,491,120 | ||||
| Other operating income | - | - | (2,687,205) | (1,298,318) | ||||
| Loss on write down of vessel held for sale | - | - | 121,165 | - | ||||
| Total operating expenses, net | 10,110,885 | 14,379,193 | 44,010,981 | 48,247,784 | ||||
| Operating income | 1,922,490 | 23,874,945 | 9,292,136 | 45,646,166 | ||||
| Other (expenses)/ income | ||||||||
| Interest and other financing costs | (805,076) | (776,652) | (4,125,150) | (2,779,729) | ||||
| Loss on debt extinguishment | (491,571) | - | (491,571) | - | ||||
| Loss on derivatives, net | (23,357) | (448,449) | (587,988) | (27,141) | ||||
| Foreign exchange (loss) / gain | (20,469) | 26,497 | (63,007) | 34,418 | ||||
| Interest income | 820 | 541 | 17,011 | 3,510 | ||||
| Other expenses, net | (1,339,653) | (1,198,063) | (5,250,705) | (2,768,942) | ||||
| Net income | 582,837 | 22,676,882 | 4,041,431 | 42,877,224 | ||||
| Dividend Series B Preferred shares | (168,676) | - | (693,297) | (255,324) | ||||
| Preferred deemed dividend | - | - | - | (345,423) | ||||
| Net income attributable to common shareholders | 414,161 | 22,676,882 | 3,348,134 | 42,276,477 | ||||
| Weighted average number of shares outstanding, basic | 6,149,300 | 7,210,466 | 5,753,917 | 6,976,905 | ||||
| Earnings per share attributable to common shareholders - basic | 0.07 | 3.14 | 0.58 | 6.06 | ||||
| Weighted average number of shares outstanding, diluted | 6,149,300 | 7,244,042 | 5,753,917 | 6,993,405 | ||||
| Earnings per share attributable to common shareholders - diluted | 0.07 | 3.13 | 0.58 | 6.05 | ||||
Euroseas Ltd.,
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)
| | December 31, 2020 | December 31, 2021 | ||||
| ASSETS | (unaudited) | |||||
| Current Assets: | ||||||
| Cash and cash equivalents | 3,559,399 | 26,530,944 | ||||
| Trade accounts receivable, net | 2,013,023 | 1,274,729 | ||||
| Other receivables | 1,866,624 | 1,722,885 | ||||
| Inventories | 1,662,422 | 2,185,740 | ||||
| Restricted cash | 345,010 | 167,285 | ||||
| Prepaid expenses | 244,315 | 382,729 | ||||
| Derivatives | - | 540,753 | ||||
| Total current assets | 9,690,793 | 32,805,065 | ||||
| Fixed assets: | ||||||
| Vessels, net | 98,458,447 | 176,286,989 | ||||
| Long-term assets: | ||||||
| Advances for vessels under construction | - | 7,615,958 | ||||
| Restricted cash | 2,433,768 | 4,800,000 | ||||
| Total assets | 110,583,008 | 221,508,012 | ||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Long-term bank loans, current portion | 20,645,320 | 29,034,049 | ||||
| Related party loan, current | 2,500,000 | - | ||||
| Trade accounts payable | 2,854,377 | 2,804,194 | ||||
| Accrued expenses | 1,300,420 | 1,702,925 | ||||
| Accrued preferred dividends | 168,676 | - | ||||
| Deferred revenue | 949,364 | 3,293,986 | ||||
| Derivatives | 203,553 | - | ||||
| Due to related company | 24,072 | 309,969 | ||||
| Total current liabilities | 28,645,782 | 37,145,123 | ||||
| Long-term liabilities: | ||||||
| Long -term bank loans, net of current portion | 46,220,028 | 89,004,951 | ||||
| Derivatives | 362,195 | 952,666 | ||||
| Fair value of below market time charters acquired | - | 17,634,812 | ||||
| Total long-term liabilities | 46,582,223 | 107,592,429 | ||||
| Total liabilities | 75,228,005 | 144,737,552 | ||||
| Mezzanine equity: | ||||||
| Series B Preferred shares (par value | 8,019,636 | - | ||||
| Shareholders’ equity: | ||||||
| Common stock (par value | 201,268 | 218,836 | ||||
| Additional paid-in capital | 257,467,980 | 264,609,028 | ||||
| Accumulated deficit | (230,333,881) | (188,057,404) | ||||
| Total shareholders’ equity | 27,335,367 | 76,770,460 | ||||
| Total liabilities, mezzanine and shareholders' equity | 110,583,008 | 221,508,012 | ||||
Euroseas Ltd.
Unaudited Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)
| Twelve Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2020 | 2021 | |||
| Cash flows from operating activities: | ||||
| Net income | 4,041,431 | 42,877,224 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Vessel depreciation | 6,605,976 | 7,203,198 | ||
| Amortization and write off of deferred charges | 288,163 | 223,492 | ||
| Share-based compensation | 121,631 | 182,324 | ||
| Gain on hull & machinery claim | (2,687,205) | - | ||
| Net (gain) / loss on sale of vessels | (2,453,736) | 9,417 | ||
| Loss on write down of vessel held for sale | 121,165 | - | ||
| Amortization of fair value of below market time charters acquired | (1,714,370) | (232,390) | ||
| Unrealized loss / (gain) on derivatives | 565,748 | (153,835) | ||
| Loss on debt extinguishment | 491,571 | - | ||
| Changes in operating assets and liabilities | (2,950,997) | 2,517,236 | ||
| Net cash provided by operating activities | 2,429,377 | 52,626,666 | ||
| Cash flows from investing activities: | ||||
| Cash paid for vessels under construction | - | (7,615,958) | ||
| Cash paid for vessel acquisitions and capitalized expenses | - | (65,523,144) | ||
| Cash paid for vessel improvements | (667,069) | (974,058) | ||
| Proceeds from sale of vessels | 14,622,768 | - | ||
| Insurance proceeds | 2,343,608 | - | ||
| Net cash provided by / (used in) investing activities | 16,299,307 | (74,113,160) | ||
| Cash flows from financing activities: | ||||
| Redemption of Series B preferred shares | - | (2,000,000) | ||
| Proceeds from issuance of common stock, net of commissions paid | 715,550 | 743,553 | ||
| Preferred dividends paid | (320,877) | (424,000) | ||
| Loan arrangement fees paid | - | (758,000) | ||
| Offering expenses paid | (184,321) | (123,167) | ||
| Proceeds from long- term bank loans | - | 75,500,000 | ||
| Repayment of long-term bank loans | (17,905,920) | (23,791,840) | ||
| Repayment of related party loan | (625,000) | (2,500,000) | ||
| Net cash (used in) / provided by financing activities | (18,320,568) | 46,646,546 | ||
| Net increase in cash, cash equivalents and restricted cash | 408,116 | 25,160,052 | ||
| Cash, cash equivalents and restricted cash at beginning of year | 5,930,061 | 6,338,177 | ||
| Cash, cash equivalents and restricted cash at end of year | 6,338,177 | 31,498,229 | ||
| Cash breakdown | ||||
| Cash and cash equivalents | 3,559,399 | 26,530,944 | ||
| Restricted cash, current | 345,010 | 167,285 | ||
| Restricted cash, long term | 2,433,768 | 4,800,000 | ||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 6,338,177 | 31,498,229 | ||
Euroseas Ltd.
Reconciliation of Net income to Adjusted EBITDA
(All amounts expressed in U.S. Dollars)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2021 | |||||
| Net income | 582,837 | 22,676,882 | 4,041,431 | 42,877,224 | ||||
| Interest and other financing costs, net (incl. interest income and loss on debt extinguishment) | 1,295,827 | 776,111 | 4,599,710 | 2,776,219 | ||||
| Vessel depreciation | 1,604,139 | 2,413,569 | 6,605,976 | 7,203,198 | ||||
| Net (gain) / loss on sale of vessels | (1,148,720) | - | (2,453,736) | 9,417 | ||||
| Loss on write down of vessel held for sale | - | - | 121,165 | - | ||||
| Amortization of below market time charters acquired | (240,639) | (232,390) | (1,714,370) | (232,390) | ||||
| Loss on interest rate swap derivatives | 23,357 | 448,449 | 587,988 | 27,141 | ||||
| Adjusted EBITDA | 2,116,801 | 26,082,621 | 11,788,164 | 52,660,809 | ||||
Adjusted EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net income before interest, income taxes, depreciation, loss on interest rate swap derivatives, net (gain) / loss on sale of vessels, amortization of below market time charters acquired and loss on write down of vessel held for sale. 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 we believe that this non- GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, amortization of below market time charters acquired, loss on interest rate swaps, net (gain) / loss on sale of vessels, loss on write down of vessel held for sale and depreciation. The Company's definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.
Euroseas Ltd.
Reconciliation of Net income to Adjusted net (loss) / income
(All amounts expressed in U.S. Dollars – except share data and number of shares)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2021 | |||||
| Net income | 582,837 | 22,676,882 | 4,041,431 | 42,877,224 | ||||
| Unrealized (gain) / loss on derivatives | (17,102) | 398,797 | 565,748 | (153,835) | ||||
| Net (gain)/ loss on sale of vessels | (1,148,720) | - | (2,453,736) | 9,417 | ||||
| Loss on write down of vessel held for sale | - | - | 121,165 | - | ||||
| Amortization of below market time charters acquired | (240,639) | (232,390) | (1,714,370) | (232,390) | ||||
| Depreciation charged due to increase in vessel value from below market time charter acquired | 24,455 | 99,941 | 125,403 | 99,941 | ||||
| Adjusted net (loss) / income | (799,169) | 22,943,230 | 685,641 | 42,600,357 | ||||
| Preferred dividends | (168,676) | - | (693,297) | (255,324) | ||||
| Preferred deemed dividend | - | - | - | (345,423) | ||||
| Adjusted net (loss) / income attributable to common shareholders | (967,845) | 22,943,230 | (7,656) | 41,999,610 | ||||
| Adjusted (loss) / earnings per share, basic | (0.16) | 3.18 | (0.00) | 6.02 | ||||
| Weighted average number of shares, basic | 6,149,300 | 7,210,466 | 5,753,917 | 6,976,905 | ||||
| Adjusted (loss) / earnings per share, diluted | (0.16) | 3.17 | (0.00) | 6.01 | ||||
| Weighted average number of shares, diluted | 6,149,300 | 7,244,042 | 5,753,917 | 6,993,405 | ||||
Adjusted net (loss) / income and Adjusted (loss) / earnings per share Reconciliation:
Euroseas Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized (gain) / loss on derivatives, net (gain) / loss on sale of vessels, loss on write down of vessel held for sale, amortization of below market time charters acquired, and depreciation charged due to increase in vessel value from below market time charter acquired. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company's fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivatives, net (gain) / loss on sale of vessels, loss on write down of vessel held for sale, amortization of below market time charters acquired and depreciation charged due to increase in vessel value from below market time charter acquired, which items may significantly affect results of operations between periods.
Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net income or earnings per share, as determined by GAAP. The Company's definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.
About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.
Euroseas operates in the container shipping market. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
The Company has a fleet of 16 vessels, including 10 Feeder containerships and 6 Intermediate Container carriers. Euroseas 16 containerships have a cargo capacity of 50,371 teu. After the delivery of four feeder containership newbuildings in 2023 and the first half of 2024, Euroseas’ fleet will consist of 20 vessels with a total carrying capacity of 61,571 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 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: euroseas@capitallink.com |
FAQ
What were Euroseas Ltd.'s Q4 2021 earnings per share?
How much did Euroseas Ltd. earn in net income in 2021?
What are the future plans for Euroseas Ltd. regarding vessel construction?
How much revenue did Euroseas Ltd. generate in Q4 2021?
What percentage of capacity has Euroseas Ltd. contracted for 2022?
