Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2024
Euroseas (NASDAQ: ESEA) reported strong financial results for Q4 and full year 2024. Q4 highlights include total net revenues of $53.3 million and net income of $24.4 million ($3.51 EPS). The company operated an average of 23 vessels earning $26,479 per day.
Full year 2024 delivered total net revenues of $212.9 million and net income of $112.8 million ($16.25 EPS). The company declared a quarterly dividend of $0.65 per share and has repurchased 425,449 shares (6% of outstanding) for $9.24 million.
Recent developments include the planned spin-off of three older vessels into Euroholdings , delivery of two new eco-friendly 2,800 TEU vessels with $32,000/day charter rates, and the sale of M/V Diamantis P for $13.15 million with a $10.2 million gain.
Euroseas (NASDAQ: ESEA) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. Le principali evidenze del Q4 includono ricavi netti totali di 53,3 milioni di dollari e un utile netto di 24,4 milioni di dollari (3,51 dollari per azione). L'azienda ha operato in media 23 navi guadagnando 26.479 dollari al giorno.
L'intero anno 2024 ha registrato ricavi netti totali di 212,9 milioni di dollari e un utile netto di 112,8 milioni di dollari (16,25 dollari per azione). L'azienda ha dichiarato un dividendo trimestrale di 0,65 dollari per azione e ha riacquistato 425.449 azioni (6% del totale) per 9,24 milioni di dollari.
Sviluppi recenti includono la pianificazione della scissione di tre navi più vecchie in Euroholdings, la consegna di due nuove navi ecologiche da 2.800 TEU con tariffe di noleggio di 32.000 dollari/giorno e la vendita della M/V Diamantis P per 13,15 milioni di dollari con un guadagno di 10,2 milioni di dollari.
Euroseas (NASDAQ: ESEA) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los aspectos destacados del Q4 incluyen ingresos netos totales de 53.3 millones de dólares y un ingreso neto de 24.4 millones de dólares (3.51 dólares por acción). La compañía operó un promedio de 23 buques ganando 26,479 dólares al día.
El año completo 2024 reportó ingresos netos totales de 212.9 millones de dólares y un ingreso neto de 112.8 millones de dólares (16.25 dólares por acción). La compañía declaró un dividendo trimestral de 0.65 dólares por acción y ha recomprado 425,449 acciones (6% de las acciones en circulación) por 9.24 millones de dólares.
Desarrollos recientes incluyen la planificación de la escisión de tres buques más antiguos en Euroholdings, la entrega de dos nuevos buques ecológicos de 2,800 TEU con tarifas de alquiler de 32,000 dólares/día, y la venta del M/V Diamantis P por 13.15 millones de dólares con una ganancia de 10.2 millones de dólares.
Euroseas (NASDAQ: ESEA)는 2024년 4분기 및 연간 강력한 재무 실적을 보고했습니다. 4분기 주요 사항으로는 총 순수익 5,330만 달러와 순이익 2,440만 달러(주당 3.51달러)가 포함됩니다. 회사는 평균 23척의 선박을 운영하며 하루 26,479달러를 벌었습니다.
2024년 전체는 총 순수익 2억 1,290만 달러와 순이익 1억 1,280만 달러(주당 16.25달러)를 기록했습니다. 회사는 주당 0.65달러의 분기 배당금을 선언했으며, 425,449주(발행 주식의 6%)를 924만 달러에 재매입했습니다.
최근 개발 사항으로는 Euroholdings로의 세 척의 구형 선박 분할 계획, 하루 32,000달러의 차터 요금으로 두 척의 새로운 친환경 2,800 TEU 선박 인도, 1,315만 달러에 M/V Diamantis P를 판매하여 1,020만 달러의 이익을 얻은 것이 포함됩니다.
Euroseas (NASDAQ: ESEA) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. Les points forts du Q4 incluent des revenus nets totaux de 53,3 millions de dollars et un bénéfice net de 24,4 millions de dollars (3,51 dollars par action). L'entreprise a exploité en moyenne 23 navires générant 26 479 dollars par jour.
L'année complète 2024 a enregistré des revenus nets totaux de 212,9 millions de dollars et un bénéfice net de 112,8 millions de dollars (16,25 dollars par action). L'entreprise a déclaré un dividende trimestriel de 0,65 dollar par action et a racheté 425 449 actions (6 % des actions en circulation) pour 9,24 millions de dollars.
Parmi les développements récents, on trouve la scission prévue de trois anciens navires dans Euroholdings, la livraison de deux nouveaux navires écologiques de 2 800 EVP avec des tarifs de location de 32 000 dollars/jour, et la vente du M/V Diamantis P pour 13,15 millions de dollars avec un gain de 10,2 millions de dollars.
Euroseas (NASDAQ: ESEA) hat starke Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Die Höhepunkte des Q4 umfassen Gesamtnettoumsätze von 53,3 Millionen Dollar und einen Nettogewinn von 24,4 Millionen Dollar (3,51 Dollar pro Aktie). Das Unternehmen betrieb im Durchschnitt 23 Schiffe, die täglich 26.479 Dollar einbrachten.
Das gesamte Jahr 2024 lieferte Gesamtnettoumsätze von 212,9 Millionen Dollar und einen Nettogewinn von 112,8 Millionen Dollar (16,25 Dollar pro Aktie). Das Unternehmen erklärte eine vierteljährliche Dividende von 0,65 Dollar pro Aktie und hat 425.449 Aktien (6% der ausstehenden Aktien) für 9,24 Millionen Dollar zurückgekauft.
Zu den jüngsten Entwicklungen gehört die geplante Abspaltung von drei älteren Schiffen in Euroholdings, die Lieferung von zwei neuen umweltfreundlichen 2.800 TEU-Schiffen mit Charterraten von 32.000 Dollar/Tag und der Verkauf der M/V Diamantis P für 13,15 Millionen Dollar mit einem Gewinn von 10,2 Millionen Dollar.
- Q4 2024 net revenues up 8.7% YoY to $53.3M
- Full year 2024 net income of $112.8M ($16.25 EPS)
- Increased quarterly dividend to $0.65 per share
- Two new eco-friendly vessels secured $32,000/day charter rates
- $10.2M gain from vessel sale
- Q4 2024 average charter rate decreased to $26,479/day from $29,266/day YoY
- Interest costs increased to $4.1M in Q4 2024 from $2.8M Q4 2023
- Higher debt levels compared to previous year
Insights
Euroseas (NASDAQ: ESEA) has delivered robust Q4 and full-year 2024 results, with quarterly net revenues reaching
The company's fleet modernization strategy is particularly noteworthy in the current regulatory environment. The January 2025 delivery of two Eco EEDI Phase 3 newbuildings with Tier III engines and sustainability features positions Euroseas advantageously as environmental regulations tighten. These vessels were immediately deployed on lucrative 34-36 month charters at
Euroseas' decision to spin off its three oldest vessels into Euroholdings represents a strategic portfolio optimization, allowing the parent company to focus on its newer, more efficient fleet while potentially unlocking shareholder value through the distribution of Euroholdings shares (one share for every 2.5 ESEA shares).
The company's financial position remains solid with
Most compelling is Euroseas' strategic positioning within the feeder and intermediate containership segments, which feature historically low orderbooks and aging fleets vulnerable to environmental regulations. While the broader containership market faces challenges from a high overall orderbook and potential Suez Canal traffic normalization, Euroseas appears well-positioned to benefit from capacity constraints in its specific vessel classes.
The potential implementation of new US tariffs and possible fees on Chinese-built or operated vessels could significantly disrupt established trade patterns, potentially creating inefficiencies that historically benefit specialized shipping operators like Euroseas. This uncertain trade environment, combined with the company's strong charter coverage and modern fleet, suggests Euroseas is strategically positioned to navigate industry challenges while continuing to generate substantial shareholder returns.
MAROUSSI, Greece and ATHENS, Greece, Feb. 27, 2025 (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, reported the following results for the three-month period and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights:
- Total net revenues of
$53.3 million . Net income of$24.4 million or$3.51 and$3.49 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was$23.3 million or$3.35 and$3.33 per share basic and diluted. - An average of 23.0 vessels were owned and operated during the fourth quarter of 2024 earning an average time charter equivalent rate of
$26,479 per day. - Declared a quarterly dividend of
$0.65 per share for the fourth quarter of 2024 payable on or about March 18, 2024 to shareholders of record on March 11, 2025 as part of the Company’s common stock dividend plan. - As of February 27, 2025, the Company has repurchased 425,449 of our common stock in the open market, representing about
6% of the outstanding shares, for a total of about$9.24 million , under the share repurchase plan of up to$20 million announced in May 2022.
Full Year 2024 Highlights:
- Total net revenues of
$212.9 million . Net income of$112.8 million or$16.25 and$16.20 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was$103.5 million or$14.92 and$14.87 per share basic and diluted, respectively.
- Adjusted EBITDA1 was
$135.8 million .
- An average of 21.73 vessels were owned and operated during 2024, earning an average time charter equivalent rate of
$28,054 per day.
Recent developments
On January 3, 2025, the Company announced its intent to spin-off the Company’s older three vessels, M/V Aegean Express, M/V Diamantis P and M/V Joanna, into a separate company, Euroholdings Ltd. (“Euroholdings”), which has applied for listing on the NASDAQ Capital Market. The Company contributed the three vessel owning companies to Euroholdings on January 8, 2025 in exchange for
On January 7 and 8, 2025, the Company took delivery of M/V Dear Panel and M/V Symeon P, respectively, two Eco EEDI Phase 3, 2,800 teu feeder containership newbuildings from Hyundai Mipo Dockyard Co. in South Korea. The vessels are equipped with a Tier III engine and other sustainability linked features including installation of AMP (alternative maritime power). The vessels were financed with a combination of bank debt and own funds. Following their delivery, both vessels commenced a thirty-four to thirty-six months charter at a rate of
On January 16, 2025, the Company announced that its wholly owned subsidiary, Euroholdings Ltd. (“Euroholdings”) has sold M/V Diamantis P, a 2,008 teu feeder containership vessel, built in 1998, for approximately
Aristides Pittas, Chairman and CEO of Euroseas commented:
“During the fourth quarter of 2024, the containership markets broadly maintained their levels with the larger feeders noticeably increasing. Similarly firm levels for containership rates have prevailed so far in 2025 with rates in all feeder and intermediate sectors inching up. This strength in rates is evident in our own fixtures as well, where we managed to book two of our intermediate containerships for three-year contracts at very profitable rates following the spade of fixings we did late last year for three of our newbuilding vessels and two oldest ones.
“Looking at the containership sector one can see challenges ahead due to the high overall orderbook and the prospect of liner companies reverting to using the Suez Canal for their crossings. However, the elevated geopolitical uncertainty which is further augmented by the actions of the new US Administration may not prove negative factors for our industry. Usually shipping thrives on uncertainties and inefficiencies. Against that backdrop, the new US Administration has introduced or is in the process of introducing tariffs on imports from many of its trading partners and, lately, there is talk about fees being placed on Chinese built or operated ships when calling on US ports. Whilst we believe that it will be difficult for these measures to pass, at least in their currently envisaged form, these changes, if implemented, have the potential to fundamentally change trade both in terms of pattern and volume. Also if we look at the orderbook in more detail, we can see that it is concentrated on the larger containership sizes with the feeder and intermediate sizes, where our fleet is concentrated, having not only historically low orderbook levels but also a much higher percentage of older ships which are “vulnerable” to the increasingly stricter environmental regulations. This realization that feeder and intermediate containership fleet will rather decline should provide significant support for rates for our ships despite a possible cascade effect of capacity from larger size ships.
“As we have previously explained, we have built and continue to build a strong charterbook. At the same time we are modernizing our fleet having placed an order for 2 more 4,300teu ships and having decided to spin off our 3 oldest vessels into Euroholdings. We expect our earnings to continue being strong and our cash reserves to continue increasing. Given the increased liquidity, our Board decided to increase our quarterly dividend to
Tasos Aslidis, Chief Financial Officer of Euroseas commented:
“Our revenues for the fourth quarter of 2024 are increased by approximately
“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, were slightly lower, a decrease of approximately
“Adjusted EBITDA1 during the fourth quarter of 2024 was
“As of December 31, 2024, our outstanding bank debt (excluding the unamortized loan fees) was
Fourth Quarter 2024 Results:
For the fourth quarter of 2024, the Company reported total net revenues of
For the fourth quarter of 2024, voyage expenses amounted to
Vessel operating expenses for the same period of 2024 amounted to
Vessel depreciation for the fourth quarter of 2024 increased to
Related party management fees for the three months ended December 31, 2024 were
Drydocking expenses amounted to
General and administrative expenses increased to
In the fourth quarter of 2023, we had other operating income of
Interest and other financing costs for the fourth quarter of 2024 amounted to
For the three months ended December 31, 2024 the Company recognized a
Adjusted EBITDA1 for the fourth quarter of 2024 increased to
Basic and diluted earnings per share for the fourth quarter of 2024 were
The adjusted earnings for the quarter ended December 31, 2024 would have been
Full Year 2024 Results:
For the full year of 2024, the Company reported total net revenues of
For the twelve months of 2024, voyage expenses amounted to
Vessel operating expenses for the twelve months of 2024 amounted to
Vessel depreciation for the twelve months of 2024 was
For the twelve months of 2023, the Company recorded an impairment charge of
Related party management fees for the twelve months of 2024 were
General and administrative expenses amounted to
Drydocking expenses amounted to
In the twelve months of 2023, a gain on time charter agreements termination of
The results of the Company for 2024 include a
Finally, during the twelve months of 2023, we had other operating income of
Total interest and other financing costs for the twelve months of 2024 amount to
For the twelve months ended December 31, 2024 the Company recognized a
Adjusted EBITDA1 for the twelve months of 2024 increased to
Basic and diluted earnings per share for the twelve months of 2024 were
The adjusted earnings per share for the year ended December 31, 2024 would have been
Fleet Profile:
The Euroseas Ltd. fleet profile as of February 27, 2025 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 Aug-25 | $ | 15,000 |
| SYNERGY BUSAN (*) | Intermediate | 50,726 | 4,253 | 2009 | TC until Dec-27 | $ | 35,500 |
| 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 TC until Apr-28 | $ $ | 23,000 35,500 |
| 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 Oct-27 | $ | 32,000 |
| LEONIDAS Z (*) | Feeder | 37,237 | 2,800 | 2024 | TC until Mar-26 | $ | 20,000 |
| DEAR PANEL (*) | Feeder | 37,237 | 2,800 | 2025 | TC until Nov-27 | $ | 32,000 |
| SYMEON P (*) | Feeder | 37,237 | 2,800 | 2025 | TC until Nov-27 | $ | 32,000 |
| EVRIDIKI G (*) | Feeder | 34,677 | 2,556 | 2001 | TC until Apr-26 | $ | 29,500 |
| EM CORFU (*) | Feeder | 34,654 | 2,556 | 2001 | TC until Aug-26 | $ | 28,000 |
| PEPI STAR (*) | Feeder | 22,262 | 1,800 | 2024 | TC until Jun-26 | $ | 24,250 |
| MONICA (*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-25 | $ | 16,000 |
| STEPHANIA K (*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-26 | $ | 22,000 |
| EM SPETSES (*) | Feeder | 23,224 | 1,740 | 2007 | TC until Feb-26 | $ | 18,100 |
| JONATHAN P (*) | Feeder | 23,351 | 1,740 | 2006 | TC until Sep-25 | $ | 20,000 |
| EM HYDRA (*) | Feeder | 23,351 | 1,740 | 2005 | TC until Mar-25 | $ | 13,000 |
| JOANNA(**)(***) | Feeder | 22,301 | 1,732 | 1999 | TC until Mar-26, then until Sep-26, then until Nov-26 | $ $ $ | 19,000 9,500 16,500 |
| AEGEAN EXPRESS(***) | Feeder | 18,581 | 1,439 | 1997 | TC until Oct-25 | $ | 16,700 |
| Total Container Carriers | 24 | 890,280 | 70,665 | ||||
| Vessels under construction | Type | Dwt | TEU | To be delivered |
| ELENA (H1711) | Intermediate | 55,200 | 4,300 | Q4 2027 |
| NIKITAS G (H1712) | Intermediate | 55,200 | 4,300 | Q4 2027 |
| Total under construction | 2 | 110,400 | 8,600 |
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 (+).
(**) Period to Nov-2026 is at the option of the charterer.
(***) The vessel is expected to be spun off on March 17.
Summary Fleet Data:
| Three Months, Ended December 31, 2023 | Three Months, Ended December 31, 2024 | Twelve Months, Ended December 31, 2023 | Twelve Months, Ended December 31, 2024 | |||||
| FLEET DATA | ||||||||
| Average number of vessels (1) | 19.00 | 23.00 | 18.25 | 21.73 | ||||
| Calendar days for fleet (2) | 1,748.0 | 2,116.0 | 6,663.0 | 7,932.0 | ||||
| Scheduled off-hire days incl. laid-up (3) | 25.9 | 47.8 | 25.9 | 158.0 | ||||
| Available days for fleet (4) = (2) - (3) | 1,722.1 | 2,068.2 | 6,637.1 | 7,774.0 | ||||
| Commercial off-hire days (5) | - | - | 28.9 | 3.7 | ||||
| Operational off-hire days (6) | 1.7 | 8.5 | 62.7 | 20.6 | ||||
| Voyage days for fleet (7) = (4) - (5) - (6) | 1,720.4 | 2,059.7 | 6,545.5 | 7,749.7 | ||||
| Fleet utilization (8) = (7) / (4) | 99.9 | % | 99.6 | % | 98.6 | % | 99.7 | % |
| Fleet utilization, commercial (9) = ((4) - (5)) / (4) | 100.0 | % | 100.0 | % | 99.6 | % | 100.0 | % |
| Fleet utilization, operational (10) = ((4) - (6)) / (4) | 99.9 | % | 99.6 | % | 99.1 | % | 99.7 | % |
| AVERAGE DAILY RESULTS (usd/day) | ||||||||
| Time charter equivalent rate (11) | 29,266 | 26,479 | 29,714 | 28,054 | ||||
| Vessel operating expenses excl. drydocking expenses (12) | 7,037 | 6,693 | 7,163 | 6,777 | ||||
| General and administrative expenses (13) | 895 | 1,035 | 712 | 749 | ||||
| Total vessel operating expenses (14) | 7,932 | 7,728 | 7,875 | 7,526 | ||||
| Drydocking expenses (15) | 1,287 | 1,175 | 506 | 1,329 | ||||
(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 or are paid by the Company under a voyage charter contract. TCE, which is a non-GAAP measure, provides additional meaningful information in conjunction with time charter revenue and voyage charter revenue, 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) We calculate daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and related party management fees 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 expenses are 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:
Today, Thursday, February 27, 2025 at 8:00 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 13751954. 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 fourth quarter ended December 31, 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 December 31, | Three Months Ended December 31, | Twelve Months Ended December 31, | Twelve Months Ended December 31, | ||||||
| 2023 | 2024 | 2023 | 2024 | ||||||
| Revenues | |||||||||
| Time charter revenue | 50,692,045 | 54,953,643 | 195,779,495 | 218,912,526 | |||||
| Voyage charter revenue | - | - | - | 473,055 | |||||
| Commissions | (1,633,099 | ) | (1,645,451 | ) | (6,422,112 | ) | (6,488,268 | ) | |
| Net revenues | 49,058,946 | 53,308,192 | 189,357,383 | 212,897,313 | |||||
| Operating expenses/ (income) | |||||||||
| Voyage expenses | 341,493 | 414,291 | 1,284,375 | 1,975,569 | |||||
| Vessel operating expenses | 10,825,041 | 12,377,834 | 42,004,155 | 46,685,920 | |||||
| Drydocking expenses | 2,250,067 | 2,486,081 | 3,373,648 | 10,537,928 | |||||
| Vessel depreciation | 5,989,096 | 7,425,708 | 22,835,469 | 26,367,517 | |||||
| Related party management fees | 1,475,730 | 1,783,948 | 5,720,831 | 7,067,408 | |||||
| Gain on sale of vessel | - | (1,859 | ) | (5,158,370 | ) | (5,692,653 | ) | ||
| Impairment loss | - | - | 13,832,716 | - | |||||
| General and administrative expenses | 1,563,696 | 2,190,316 | 4,744,907 | 5,938,870 | |||||
| Other operating income | (1,081,282 | ) | - | (2,727,114 | ) | - | |||
| Gain on time charter agreements termination | - | - | (15,984,253 | ) | - | ||||
| Total operating expenses, net | 21,363,841 | 26,676,319 | 69,926,364 | 92,880,559 | |||||
| Operating income | 27,695,105 | 26,631,873 | 119,431,019 | 120,016,754 | |||||
| Other (expenses)/ income | |||||||||
| Interest and other financing costs | (2,513,394 | ) | (3,510,739 | ) | (6,431,007 | ) | (10,620,703 | ) | |
| (Loss) / gain on derivatives, net | (954,353 | ) | 457,916 | 178,128 | 1,001,754 | ||||
| Foreign exchange (loss) / gain | (1,462 | ) | 30,178 | (33,634 | ) | 18,633 | |||
| Interest income | 498,657 | 782,588 | 1,404,773 | 2,359,240 | |||||
Other expenses, net | (2,970,552 | ) | (2,240,057 | ) | (4,881,740 | ) | (7,241,076 | ) | |
| Net income | 24,724,553 | 24,391,816 | 114,549,279 | 112,775,678 | |||||
| Weighted average number of shares outstanding, basic | 6,908,581 | 6,952,001 | 6,931,280 | 6,938,204 | |||||
| Earnings per share, basic | 3.58 | 3.51 | 16.53 | 16.25 | |||||
| Weighted average number of shares outstanding, diluted | 6,943,912 | 6,989,333 | 6,936,060 | 6,961,266 | |||||
| Earnings per share, diluted | 3.56 | 3.49 | 16.52 | 16.20 | |||||
| Euroseas Ltd. Unaudited Consolidated Condensed Balance Sheets (All amounts expressed in U.S. Dollars – except number of shares) | ||||
| December 31, 2023 | December 31, 2024 | |||
| ASSETS | ||||
| Current Assets: | ||||
| Cash and cash equivalents | 58,613,304 | 73,739,504 | ||
| Trade accounts receivable, net | 2,037,940 | 4,551,077 | ||
| Other receivables | 2,276,116 | 775,793 | ||
| Inventories | 2,538,342 | 3,191,140 | ||
| Restricted cash | 2,994 | 926,823 | ||
| Prepaid expenses | 502,833 | 1,338,031 | ||
| Derivative | - | 184,392 | ||
| Total current assets | 65,971,529 | 84,706,760 | ||
| Fixed assets: | ||||
| Advances for vessels under construction | 85,375,650 | 56,924,663 | ||
| Vessels, net | 267,626,155 | 443,386,898 | ||
| Long-term assets: | ||||
| Derivative | - | 200,636 | ||
| Restricted cash | 5,700,000 | 6,000,000 | ||
| Total assets | 424,673,334 | 591,218,957 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Long-term bank loans, current portion | 30,839,541 | 36,930,532 | ||
| Trade accounts payable | 5,746,510 | 5,735,830 | ||
| Accrued expenses | 1,865,615 | 4,482,282 | ||
| Accrued dividends | 105,250 | 121,030 | ||
| Derivative | 56,042 | - | ||
| Deferred revenue | 11,275,911 | 8,237,629 | ||
| Due to related company | 1,298,941 | 1,662,306 | ||
| Total current liabilities | 51,187,810 | 57,169,609 | ||
| Long-term liabilities: | ||||
| Long-term bank loans, net of current portion | 99,161,871 | 168,473,386 | ||
| Derivative | 168,138 | - | ||
| Fair value of below market time charters acquired | 7,580,306 | 2,626,130 | ||
| Total long-term liabilities | 106,910,315 | 171,099,516 | ||
| Total liabilities | 158,098,125 | 228,269,125 | ||
| Shareholders’ equity: | ||||
| Common stock (par value | 210,430 | 211,468 | ||
| Additional paid-in capital | 258,434,237 | 258,887,382 | ||
| Retained earnings | 7,930,542 | 103,850,982 | ||
| Total shareholders’ equity | 266,575,209 | 362,949,832 | ||
| Total liabilities and shareholders' equity | 424,673,334 | 590,218,957 | ||
| 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, | |||
| 2023 | 2024 | |||
| Cash flows from operating activities: | ||||
| Net income | 114,549,279 | 112,775,678 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Vessel depreciation | 22,835,469 | 26,367,517 | ||
| Impairment loss | 13,832,716 | - | ||
| Amortization and write off of deferred charges | 475,511 | 538,789 | ||
| Share-based compensation | 1,083,414 | 1,519,933 | ||
| Gain on sale of vessel | (5,158,370 | ) | (5,692,653 | ) |
| Amortization of fair value of below market time charters acquired | (11,368,879 | ) | (4,954,176 | ) |
| Gain on time charter agreements termination | (15,984,253 | ) | - | |
| Unrealized loss / (gain) on derivatives | 4,036,107 | (609,209 | ) | |
| Changes in operating assets and liabilities | 5,706,131 | (1,779,989 | ) | |
| Net cash provided by operating activities | 130,007,125 | 128,165,890 | ||
| Cash flows from investing activities: | ||||
| Cash paid for vessels under construction | (111,475,509 | ) | (173,719,072 | ) |
| Cash paid for vessel acquisitions and vessel improvements | (817,740 | ) | (5,201,697 | ) |
| Net proceeds from sale of a vessel | 10,100,598 | 10,146,400 | ||
| Net cash used in investing activities | (102,192,651 | ) | (168,774,369 | ) |
| Cash flows from financing activities: | ||||
| Cash paid for share repurchase | (3,145,435 | ) | (1,065,750 | ) |
| Dividends paid | (13,982,351 | ) | (16,839,457 | ) |
| 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 | (68,975,000 | ) | (38,137,585 | ) |
| Net cash provided by financing activities | 5,063,318 | 56,958,508 | ||
| Net increase in cash, cash equivalents and restricted cash | 32,877,792 | 16,350,029 | ||
| Cash, cash equivalents and restricted cash at beginning of year | 31,438,506 | 64,316,298 | ||
| Cash, cash equivalents and restricted cash at end of year | 64,316,298 | 80,666,327 | ||
| Cash breakdown | ||||
| Cash and cash equivalents | 58,613,304 | 73,739,504 | ||
| Restricted cash, current | 2,994 | 926,823 | ||
| Restricted cash, long term | 5,700,000 | 6,000,000 | ||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 64,316,298 | 80,666,327 | ||
| Euroseas Ltd. Reconciliation of Adjusted EBITDA to Net Income (All amounts expressed in U.S. Dollars) | ||||||||
| Three Months Ended December 31, 2023 | Three Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | Twelve Months Ended December 31, 2024 | |||||
Net income | 24,724,553 | 24,391,816 | 114,549,279 | 112,775,678 | ||||
| Interest and other financing costs, net (incl. interest income) | 2,014,737 | 2,728,151 | 5,026,234 | 8,261,463 | ||||
| Vessel depreciation | 5,989,096 | 7,425,708 | 22,835,469 | 26,367,517 | ||||
| Impairment loss | - | - | 13,832,716 | - | ||||
| Gain on sale of vessel | - | (1,859 | ) | (5,158,370 | ) | (5,692,653 | ) | |
| Gain on time charter agreements termination | - | - | (15,984,253 | ) | - | |||
| Amortization of fair value of below market time charters acquired | (1,245,312 | ) | (1,245,312 | ) | (11,368,879 | ) | (4,954,176 | ) |
| Loss / (gain) / on interest rate swap derivatives, net | 954,353 | (457,916 | ) | (178,128 | ) | (1,001,754 | ) | |
Adjusted EBITDA | 32,437,427 | 32,840,588 | 123,554,068 | 135,756,075 | ||||
Adjusted EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net income before interest and other financing costs, income taxes, depreciation, impairment loss, loss / (gain) 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 United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance and liquidity position and because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of financial costs, (gain) / loss on interest rate swaps, 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 December 31, 2023 | Three Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | Twelve Months Ended December 31, 2024 | |||||
Net income | 24,724,553 | 24,391,816 | 114,549,279 | 112,775,678 | ||||
| Unrealized loss / (gain) on derivatives | 1,049,604 | (361,342 | ) | 4,036,107 | (609,209 | ) | ||
| Impairment loss | - | - | 13,832,716 | - | ||||
| Gain on sale of vessel | - | (1,859 | ) | (5,158,370 | ) | (5,692,653 | ) | |
| Gain on time charter agreements termination | - | - | (15,984,253 | ) | - | |||
| Amortization of fair value of below market time charters acquired | (1,245,312 | ) | (1,245,312 | ) | (11,368,879 | ) | (4,954,176 | ) |
| Vessel depreciation on the portion of the consideration of vessels acquired with attached time charters allocated to below market time charters | 505,804 | 505,804 | 4,004,558 | 2,005,732 | ||||
| Adjusted net income | 25,034,649 | 23,289,107 | 103,911,158 | 103,525,372 | ||||
Adjusted earnings per share, basic | 3.62 | 3.35 | 14.99 | 14.92 | ||||
Weighted average number of shares outstanding, basic | 6,908,581 | 6,952,001 | 6,931,280 | 6,938,204 | ||||
Adjusted earnings per share, diluted | 3.61 | 3.33 | 14.98 | 14.87 | ||||
Weighted average number of shares outstanding, diluted | 6,943,912 | 6,989,333 | 6,936,060 | 6,961,266 | ||||
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 24 vessels, including 17 Feeder containerships and 7 Intermediate containerships. Euroseas 24 containerships have a cargo capacity of 70,665 teu. After the delivery of two intermediate containership newbuildings in 2027, Euroseas’ fleet will consist of 26 vessels with a total carrying capacity of 79,265 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 |
_______________________________
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.
FAQ
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