Name Type Dwt TEU Year Employment TCE Rate Built ($/day) Dry Bulk Vessels ---------------- IRINI Panamax 69,734 1988 Baumarine $17,000 to Pooltil end $20,000 2008 ARISTIDES Panamax 69,268 1993 TC til Jan-08 $29,000 N.P. NIKOLAOS Handysize 34,750 1984 Spot $17,000 P. GREGOS Handysize 38,434 1984 Spot $18,880 (ex-TRIADA) Total Dry 4 212,186 Bulk Vessels Multipurpose Dry Cargo Vessels ------------- Tasman Trader 1 22,568 950 1990 TC til $8,850 til Dec-08, Mar-12 $9,950 til Dec-10, $9,000 til Mar-12 Container Carriers ------------------ ARTEMIS Inter- 29,693 2,098 1987 TC til Dec-08 $19,000 mediate YM Handy- 23,596 1,599 1993 TC til Jul-09 $26,650 XINGANG I size YM Feeder 18,253 1,169 1990 TC til Mar-07 $11,900 QINGDAO I KUO HSIUNG Feeder 18,154 1,169 1993 TC til Nov-07 $12,000 Total 4 89,696 6,035 Container Carriers Fleet Grand 9 324,450 6,985 TotalEuroseas employs its vessels in the spot and time charter market and through pool arrangements. Presently, one of our panamax bulkers, the M/V "Aristides NP," our four containerships and our multipurpose vessel are employed under time charters. Two of our bulkers are under spot charters while our panamax vessel, M/V "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 three "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). As of today, about 67% of our capacity days in 2007 and 38% of our 2008 days are fixed under time charter contracts or protected from market fluctuations. Summary Fleet Data:
3 Months 3 Months Full Year Full Year ended ended ended ended December December December December 31, 2005 31, 2006 31, 2005 31, 2006 ========= ========= ========= ========= FLEET DATA Number of vessels 7.4 8.5 7.1 8.1 Calendar days 680 783 2,591 2,942 Available days 660 783 2,546 2,895 Voyage days 660 780 2,508 2,864 Utilization Rate 100.0% 99.6% 98.5% 98.9% AVERAGE DAILY RESULTS (usd/day) Average TCE rate 14,996 15,774 17,485 14,313 Running Cost 3,364 3,536 3,323 3,524 Management Fee 708 796 738 770 G&A Expenses 426 407 162 366 Total Operating Expenses 4,498 4,739 4,223 4,660 ========= ========= ========= =========(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 to generate 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: Wednesday, February 28, 2007, at 10:00 a.m. EST, Euroseas' 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 1 866 869 2352 (from the US), 0800 694 1449 (from the UK) or +44 (0)1452 560 304 (international standard dial in). Quote "Euroseas." A recording of the conference call will be available until March 7, 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 fourth Quarter 2006 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. Condensed Consolidated Statement of Income (All amounts expressed in U.S. Dollars - except share amounts) Three Months Three Months Full Year Full Year Ended Ended Ended Ended December 31 December 31 December 31 December 31 2005 2006 2005 2006 (unaudited) (unaudited) (unaudited) (unaudited) Revenues Voyage revenue 10,431,896 12,441,416 44,523,401 42,143,361 Commissions (540,449) (549,129) (2,388,349) (1,829,534) Net revenues 9,891,447 11,892,287 42,135,052 40,313,827 Operating expenses Voyage expenses 534,327 140,355 670,551 1,154,738 Vessel operating expenses 2,287,602 2,768,869 8,610,279 10,368,817 Management fees 481,392 623,447 1,911,856 2,266,589 General & Administrative Expenses 289,891 318,603 420,755 1,076,884 Amortization and depreciation 1,401,904 2,303,081 4,208,252 7,292,838 ----------- ----------- ----------- ----------- Total operating expenses 4,995,116 6,154,355 15,821,693 22,159,866 Gain from vessel sale 0 0 0 4,445,856 Operating income 4,896,331 5,737,932 26,313,359 22,599,817 Other income/(expenses) Interest and finance cost (386,609) (1,139,908) (1,495,871) (3,398,858) Trading derivative gain 0 0 (100,029) 0 Foreign exchange (loss)/gain (1) (534) 538 (1,598) Interest income 211,757 149,495 460,457 870,046 Other expenses, net (174,853) (990,947) (1,134,905) (2,530,410) Net income for the period 4,721,478 4,746,985 25,178,454 20,069,407 Earings per share - basic and diluted 0.39 0.38 2.34 1.60 Weighted average number of shares outstanding during period - basic and diluted 12,260,387 12,620,148 10,739,476 12,535,365 ----------- ----------- ----------- -----------EBITDA Reconciliation: Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before interest, taxes, depreciation, amortization and gains (or losses) from sale of vessels. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by the accounting principles generally accepted in the United States of America, 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 performance and because we believe that it presents useful information to investors. 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 EBITDA (All amounts expressed in U.S. Dollars) (unaudited) Three Months Three Months Full Year Full Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2005 2006 2005 2006 Net income 4,721,478 4,746,985 25,178,454 20,069,407 Interest and finance costs, net (incl. Interest Income) 174,852 990,413 1,035,414 2,528,812 Depreciation and amortization 1,401,904 2,303,081 4,208,252 7,292,838 Amortization of Fair value of the above market time charter acquired - 380,003 - 380,003 Amortization of Fair value of the below market time charter acquired - (361,566) - (731,372) Adjusted EBITDA 6,298,234 8,058,916 30,422,120 29,539,688About 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); until January 29, 2007 it traded under the ticker symbol (
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