Year TCERate
Name Type Dwt TEU Built Employment ($/day)
------------- -------- ------ ----- ------------ ------------
Dry Bulk Vessels
------------- -------- ------ ----- ------------ ------------
Baumarine
Pool - 'til $ 17,000 to
IRINI (*) Panamax 69,734 1988 end 2008 $ 20,000
------------- -------- ------ ----- ------------ ------------
ARISTIDES N.P. TC 'til
Panamax 69,268 1993 Jan-08 $ 29,000
------------- -------- ------ ----- ------------ ------------
NIKOLAOS P. Handysize 34,750 1984 TC ' Aug-07 $ 21,300
------------- -------- ------ ----- ------------ ------------
GREGO S Handysize 38,691 1984 Spot $ 27,000
------------- -------- ------ ----- ------------ ------------
Total Dry
Bulk Vessels 4 212,443
------------- -------- ------ ----- ------------ ------------
------------- -------- ------ ----- ------------ ------------
Multipurpose
Dry Cargo Vessels
------------- -------- ------ ----- ------------ ------------
$ 8,850 'til
Dec-08,
$ 9,500 'til
TASMAN TRADER 1 22,568 950 1990 TC 'til Dec-10,
Mar-12 $ 9,000 'til
Mar-12
------------- -------- ------ ----- ------------ ------------
Container
Carriers
------------- -------- ------ ----- ------------ ------------
TC 'til
ARTEMIS Intermediate 29,693 2,098 1987 Dec-08 $ 19,000
------------- -------- ------ ----- ------------ ------------
CLAN TC 'til
GLADIATOR Handysize 30,007 1,742 1992 Apr-08 $ 19,000
------------- -------- ------ ----- ------------ ------------
TC 'til
YM XINGANG I Handysize 23,596 1,599 1993 Jul-09 $ 26,650
------------- -------- ------ ----- ------------ ------------
TC 'til
MANOLIS P Handysize 20,346 1,452 1995 Mar-08 $ 13,450
------------- -------- ------ ----- ------------ ------------
NINOS (ex-YM TC 'til
QINGDAO I) Feeder 18,253 1,169 1990 Apr-08 $ 12,800
------------- -------- ------ ----- ------------ ------------
TC 'til
KUO HSIUNG Feeder 18,154 1,169 1993 Nov-07 $ 12,000
------------- -------- ------ ----- ------------ ------------
Total Container
Carriers 6 140,049 9,229
------------- -------- ------ ----- ------------ ------------
Fleet Grand
Total 11 375,060 10,179
------------- -------- ------ ----- ------------ ------------
(*) "IRINI," is employed in the Baumarine pool that is managed by
Klaveness, a major global charterer in the dry bulk area, and also
participates in two "short" funds (contracts to carry cargo at agreed
rates), minimizing its exposure to the spot market (covered at 77% for 2007
and 42% for 2008, approximately).
Summary Fleet Data:
3 months, 3 months,
ending ending
March 31, 2006 March 31, 2007
-------------- --------------
FLEET DATA
Average number of vessels (1) 8.00 9.01
Calendar days for fleet (2) 720.0 811.0
Available days for fleet (3) 709.0 767.0
Voyage days for fleet (4) 709.0 765.7
Fleet utilization (5) 100.0% 99.8%
AVERAGE DAILY RESULTS
Time charter equivalent (6) 13,072 18,333
Vessel operating expenses (7) 4,330 4,433
General and administrative expenses (8) 326 308
Total vessel operating expenses (9) 4,656 4,741
-------------- --------------
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of
calendar days each vessel was a part of our fleet during the period divided
by the number of calendar days in that period.
(2) Calendar days. We define calendar days as the total number of days in a
period during which each vessel in our fleet was in our possession
including off-hire days associated with major repairs, drydockings or
special or intermediate surveys. Calendar days are an indicator of the size
of our fleet over a period and affect both the amount of revenues and the
amount of expenses that we record during that period.
(3) Available days. We define available days as the total number of days in
a period during which each vessel in our fleet was in our possession net of
off-hire days associated with scheduled repairs, drydockings or special or
intermediate surveys. The shipping industry uses available days to measure
the number of days in a period during which vessels were available togenerate revenues.
(4) Voyage days. We define voyage days as the total number of days in a
period during which each vessel in our fleet was in our possession net of
off-hire days associated with scheduled and unscheduled repairs,
drydockings or special or intermediate surveys or days waiting to find
employment or other offhire. The shipping industry uses voyage days to
measure the number of days in a period during which vessels actually
generate revenues.
(5) Fleet utilization. We calculate fleet utilization by dividing the
number of our voyage days during a period by the number of our available
days during that period. The shipping industry uses fleet utilization to
measure a company's efficiency in finding suitable employment for its
vessels and minimizing the amount of days that its vessels are off-hire for
reasons such as unscheduled repairs or days waiting to find employment.
(6) Time charter equivalent, or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is determined by
dividing revenue generated from voyage charters net of voyage expenses by
available days for the relevant time period. Voyage expenses primarily
consist of port, canal and fuel costs that are unique to a particular
voyage, which would otherwise be paid by the charterer under a time charter
contract, as well as commissions. TCE is a standard shipping industry
performance measure used primarily to compare period-to-period changes in a
shipping company's performance despite changes in the mix of charter types
(i.e., spot voyage charters, time charters and bareboat charters) under
which the vessels may be employed between the periods.
(7) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs
are calculated by dividing vessel operating expenses by fleet calendar days
for the relevant time period.
(8) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period.
(9) Total vessel operating expenses, or TVOE, is a measure of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses and general and administrative expenses. Daily TVOE is
calculated by dividing TVOE by fleet calendar days for the relevant time
period.
Conference Call and Webcast:
Tomorrow, Wednesday, May 30, 2007 at 11:00 a.m. EDT, 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: 1 866 819 7111 (from the US), 0800 953 0329
(from the UK) or +44 (0)1452 542 301 (international standard dial in).
Please quote "Euroseas."
In case of any problems with the above numbers, please dial 1 866 223 0615
(from the US), 0800 694 1503 (from the UK) or +44 (0)1452 586 513
(international standard dial in). Quote "Euroseas."
A recording of the conference call will be available until June 8, 2007 by
dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44
(0)1452 550 000 (international standard dial in). Access Code: 6973591#
Audio webcast - Slides Presentation:
There will be a live and then archived audio webcast of the conference
call, via the internet through the Euroseas website (www.euroseas.gr).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
A slides presentation on the First Quarter 2007 Results in PDF format will
also be available 30 minutes prior to the conference call and webcast
accessible on the company's website (www.euroseas.gr) on the webcast page.
Participants to the webcast can download the PDF presentation.
Euroseas Ltd.
Consolidated Condensed Statement of Income
(All amounts expressed in U.S. Dollars – except share amounts)
Three Months Three Months
Ended March 31 Ended March 31
2006 2007
-------------- --------------
(unaudited) (unaudited)
Revenues
Voyage revenue 9,809,021 14,183,320
Commissions (479,583) (636,671)
Net revenues 9,329,438 13,546,649
Operating expenses
Voyage expenses 541,189 146,615
Vessel operating expenses 2,606,100 2,927,011
Amortization and depreciation 1,556,489 2,691,026
Management fees 511,584 668,207
Other general and administrative
expenses 234,425 249,636
Total operating expenses 5,449,787 6,682,496
Net gain from sale of vessel 0 3,411,397
Operating income 3,879,651 10,275,550
Other income/(expenses)
Interest and finance cost (678,366) (1,193,097)
Interest income 219,432 392,256
Foreign exchange (loss)/gain (1,835) 598
Other expenses, net (460,769) (800,243)
-------------- --------------
Net income 3,418,882 9,475,307
-------------- --------------
Net income per share 0.28 0.58
Weighted average number of shares, basic
and diluted 12,276,374 16,453,483
-------------- --------------
Euroseas Ltd.
Consolidated Condensed Balance Sheet
(All amounts expressed in U.S. Dollars)
Year Ended Quarter Ended
December 31, March 31,
2006 2007
ASSETS (unaudited) (unaudited)
Current Assets:
Cash and cash equivalents 2,791,107 37,858,522
Cash advances for vessel acquisitions - 1,953,425
Trade accounts receivables 378,216 465,704
Other receivables 268,864 394,735
Due from related company 2,649,259 2,328,538
Inventories 716,131 813,855
Restricted cash 1,146,621 1,546,241
Vessel held for sale 1,782,840 -
Prepaid expenses 242,558 441,749
Total current assets 9,975,596 45,802,769
Long-term assets:
Vessels, net 95,494,342 106,193,482
Restricted cash 2,700,000 2,700,000
Deferred charges, net 1,291,844 1,998,960
Deferred offering expenses 500,000 -
Fair value of above market time charter
acquired 7,543,477 6,815,811
Total long-term assets 107,529,663 117,708,253
Total assets 117,505,259 163,511,022
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Long term debt, current portion 18,040,000 17,490,000
Trade accounts payable 1,034,713 1,480,824
Accrued expenses 1,233,185 1,245,766
Deferred revenue 1,357,501 1,415,732
Total current liabilities 21,665,399 21,632,322
Long-term liabilities:
Long term debt, net of current portion 56,910,000 53,050,000
Fair value of below market time charter
acquired 918,200 802,945
Total long-term liabilities 57,828,200 53,852,945
Total liabilities 79,493,599 75,485,267
Shareholders' equity:
Share capital 378,605 551,105
Additional paid-in capital 18,283,767 61,426,487
Retained earnings 19,349,288 26,048,163
Total shareholders' equity 38,011,660 88,025,755
Total liabilities and shareholders'
equity 117,505,259 163,511,022
--------------- ---------------
Euroseas Ltd.
Reconciliation of Adjusted EBITDA to
Net Income and Cash Flow Provided By Operating Activities
(All amounts expressed in U.S. Dollars)
Three Months Three Months
Ended March 31, Ended March 31,
2006 2007
--------------- --------------
Net income 3,418,882 9,475,307 --------------- --------------
Interest and finance costs, net
(includes interest income) 458,934 800,841
--------------- --------------
Depreciation and amortization 1,556,489 2,691,026
--------------- --------------
Amortization of deferred revenue of below
market time charter acquired - (115,255)
--------------- --------------
Amortization of deferred revenue of above
market time charter acquired - 727,666
--------------- --------------
Adjusted EBITDA 5,434,305 13,579,585
=============== ==============
Three Months Three Months
Ended March 31, Ended March 31,
2006 2007
-------------- ---------------
Net cash flow provided by operating
activities 7,305,894 8,844,858
-------------- ---------------
Changes in operating assets / liabilities (2,330,523) 544,609
-------------- ---------------
Gain from vessel sale - 3,411,397
-------------- ---------------
Interest, net 458,934 778,721
-------------- ---------------
Adjusted EBITDA 5,434,305 13,579,585
============== ===============
EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before
interest, taxes, depreciation, amortization and amortization of deferred
revenues from above or below market time charters acquired. Adjusted EBITDA
does not represent and should not be considered as an alternative to net
income or cash flow from operations, as determined by United States
generally accepted accounting principles, or U.S. GAAP, and our calculation
of Adjusted EBITDA may not be comparable to that reported by other
companies. Adjusted EBITDA is included herein because it is a basis upon
which we assess our liquidity position and because we believe that it
presents useful information to investors regarding a company's ability to
service and/or incur indebtedness. The Company's definition of Adjusted
EBITDA may not be the same as that used by other companies in the shipping
or other industries.
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 (previously it traded on the Over The
Counter Bulletin Board under the ticker symbol EUSEF.OB).
Euroseas operates in the dry cargo, drybulk and container shipping markets.
Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000
certified affiliated ship management company, which is responsible for the
day-to-day commercial and technical management and operations of the
vessels. Euroseas employs its vessels on spot and period charters and
through pool arrangements.
After the delivery to its fleet of the recently agreed to be acquired M/V
"Clan Gladiator," the Company will have a fleet of 11 vessels, including 2
Panamax drybulk carriers, 2 Handysize drybulk carriers, 1 Intermediate
container ship, 3 Handysize container ships, 2 Feeder container ships and a
multipurpose dry cargo vessel. Euroseas' 4 drybulk carriers have a total
cargo capacity of 212,443 dwt, its 6 container ships will have a cargo
capacity of 9,229 teu and its 1 multipurpose vessel has a cargo capacity of
22,568 dwt or 950 teu.
Forward Looking Statement
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended) concerning future events
and the Company's growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further time
charters. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and
similar expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that
such expectations will prove to have been correct. These statements involve
known and unknown risks and are based upon a number of assumptions and
estimates that are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of the Company. Actual
results may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to changes in the demand for
dry bulk vessels and container ships, competitive factors in the market in
which the Company operates; risks associated with operations outside the
United States; and other factors listed from time to time in the Company's
filings with the Securities and Exchange Commission. The Company expressly
disclaims any obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is based.
Contact Information: Contact: Visit our website www.euroseas.gr Company Contact Tasos Aslidis Chief Financial Officer Euroseas Ltd. 2693 Fair View Drive Mountainside, NJ 07092 Tel. (908) 301-9091 E-mail: aha@euroseas.gr Investor Relations / Financial Media Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com