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-Adjusted EBITDA1 was $4.0 million. -An average of 15.00 vessels were owned and operated during the third quarter of 2012 earning an average time charter equivalent rate of $10,246 per day. -Declared a quarterly dividend of $0.015 per share for the third quarter of 2012 payable on or about December 11, 2012 to shareholders of record on December 4, 2012. This is the twenty-ninth consecutive quarterly dividend declared. First Nine Months 2012 Highlights: -Net loss of $11.2 million or $0.30 net loss per share basic and diluted on total net revenues of $40.1 million. Adjusted net loss1 for the period was $2.0 million, or $0.05 net loss per share basic and diluted. -Adjusted EBITDA1 was $12.3 million. -An average of 15.28 vessels were owned and operated during the first nine months of 2012 earning an average time charter equivalent rate of $10,373 per day. -Declared three quarterly dividends for a total of $0.075 per share during the first nine months of 2012. 1 Adjusted EBITDA, Adjusted net loss and Adjusted loss per share are not recognized measurements under 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 U.S. GAAP. Aristides Pittas, Chairman and CEO of Euroseas commented: "During the third quarter of 2012, the containership market continued being depressed with no boost in charter rates during the usual holiday-targeted seasonal uptick during September and October. Drybulk rates continued their downward slide during the quarter as well. While most of our containerships are chartered at the presently low market levels, our drybulk vessels benefit from previously entered charter contracts with higher rates well in 2013. "Looking forward, we expect to continue facing a challenging rate environment as weaker world economic growth is projected for 2013 alongside with significant fleet supply growth. This difficult operating environment comes along with opportunities to invest in vessels at very attractive valuations. We believe that our strong balance sheet and low leverage will allow us to not only manage the challenging year ahead but be in position to capitalize on investment opportunities as they appear to renew and expand our fleet. In this context, our Board decided to declare a quarterly dividend of $0.015 per share which represents an annual yield of about 5.4% on the basis of our stock price on November 6, 2012." Tasos Aslidis, Chief Financial Officer of Euroseas commented: "The results of the third quarter of 2012 reflect the continued depressed state of the containership market while, at the same time, our overall results benefited from above market charter rates of our drybulk fleet. Overall, lower revenues during the third quarter of 2012 partly offset by lower drydocking expenses and lower derivative losses during the quarter as compared to the third quarter of 2011 resulted in a $0.8 million loss during the third quarter of 2012 compared to a $0.6 million net income during the third quarter of 2011. "Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, registered a decrease of about 1.4% during the third quarter of 2012 compared to the same quarter of last year and a decrease of about 0.2% for the nine month periods ended September 30, 2012 over the same period of 2011. Drydocking expenses expressed on a per vessel per day basis were lower by 71.6% in the nine month period of 2012 and 36.9% lower for the third quarter of 2012, respectively, as compared to the same periods in 2011. As always, we want to emphasize that cost control remains a key component of our strategy. "As of September 30, 2012, our outstanding debt was $65.0 million versus restricted and unrestricted cash of about $45.4 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $16 million, a number low enough to provide us with significant operational cash flow comfort. All our debt covenants were satisfied as of September 30, 2012." Third Quarter 2012 Results: For the third quarter of 2012, the Company reported total net revenues of $13.4 million representing a 17.5% decrease over total net revenues of $16.2 million during the third quarter of 2011. The Company reported a net loss for the period of $0.8 million as compared to net income of $0.6 million for the third quarter of 2011. The results for the third quarter of 2012 include a $0.2 million net unrealized gain on derivatives and a $0.4 million realized loss on derivatives as compared to $1.0 million net unrealized loss on derivatives and trading securities and $0.1 million realized loss on derivatives for the same period of 2011. Depreciation expenses for the third quarter of 2012 were $4.3 million, compared to the $4.6 million of the same period of 2011. On average, 15.00 vessels were owned and operated during the third quarter of 2012 earning an average time charter equivalent rate of $10,246 per day compared to 16.00 vessels in the same period of 2011 earning on average $11,633 per day. Adjusted EBITDA for the third quarter of 2012 was $4.0 million, a 39.9% decrease from $6.7 million achieved during the third quarter of 2011. Basic and diluted loss per share for the third quarter of 2012 was $0.02, calculated on 45,210,705 basic and diluted weighted average number of shares outstanding, compared to $0.02 earnings per share for the third quarter of 2011, calculated on 31,825,313 basic and 31,880,335 diluted weighted average number of shares outstanding. Excluding the effect on the loss for the quarter of the unrealized gain on derivatives and the realized loss on derivatives, the adjusted loss per share for the quarter ended September 30, 2012 would have been $0.01 per share basic and diluted compared to earnings of $0.05 per share for the quarter ended September 30, 2011. Usually, security analysts do not include the above items in their published estimates of earnings per share. First Nine Months 2012 Results: For the first nine months of 2012, the Company reported total net revenues of $40.1 million representing a 12.9% decrease over total net revenues of $46.0 million during the first nine months of 2011. The Company reported a net loss for the period of $11.2 million as compared to net income of $0.0 million for the first nine months of 2011. The results for the first nine months of 2012 include a $0.7 million unrealized gain on derivatives and realized gain on trading securities, a $1.3 million realized loss on derivatives and a $8.6 million loss on sale of vessel as compared to a $1.1 million unrealized loss on derivatives and trading securities, a $0.6 million net realized loss on derivatives and $1.3 million amortization of time charters acquired, for the same period of 2011. Depreciation expenses for the first nine months of 2012 were $13.1 million compared to $13.8 million during the same period of 2011. On average, 15.28 vessels were owned and operated during the first nine months of 2012 earning an average time charter equivalent rate of $10,373 per day compared to 16.00 vessels in the same period of 2011 earning on average $11,356 per day. Adjusted EBITDA for the first nine months of 2012 was $12.3 million, a 20.0% decrease from $15.4 million achieved during the first nine months of 2011. Please see below for Adjusted EBITDA reconciliation to net income/(loss) and cash flow provided by operating activities. Basic and diluted net loss per share for the first nine months of 2012 were $0.30, calculated on 36,806,388 weighted average number of shares outstanding basic and diluted, respectively, compared to basic and diluted earnings per share of $0.00 for the first nine months of 2011, calculated on 31,769,312 and 31,792,558 weighted average number of shares outstanding basic and diluted, respectively. Excluding the effect on the loss for the first nine months of 2012 of the unrealized gain on derivatives, realized gain on trading securities and realized loss on derivatives and the loss on sale of vessel, the adjusted loss per share for the nine-month period ended September 30, 2012 would have been $0.05 per share basic and diluted compared to earnings of $0.01 per share basic and diluted for the same period in 2011. Usually, security analysts do not include the above items in their published estimates of earnings per share. Full report at:www.euroseas.gr 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 136 years. Euroseas trades on the NASDAQ Global Market under the ticker ESEA since January 31, 2007. Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. The Company has a fleet of 15 vessels, including 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3 Intermediate containership, 4 Handysize containerships, 2 Feeder containerships and a multipurpose dry cargo vessel. Euroseas` 5 drybulk carriers have a total cargo capacity of 331,808 dwt, its 10 containerships have a cargo capacity of 15,855 teu and its multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu. Euroseas Ltd. Press Release |
Euroseas Ltd. Reports Results for the Nine-Month Period