First Quarter 2023 Highlights:
- Total net revenues of
$11.3 million . - Net loss of
$1.5 million or$0.55 loss per share basic and diluted, respectively. - Adjusted net income1 for the quarter of
$0.4 million or$0.14 earnings per share basic and diluted, respectively, before unrealized loss on derivatives. - Adjusted EBITDA1 was
$2.4 million . - An average of 10.0 vessels were owned and operated during the first quarter of 2023 earning an average time charter equivalent rate of
$10,674 per day. Refer to a subsequent section of the Press Release for the definition and method of calculation of time charter equivalent rate. - As of
May 15, 2023 , we had repurchased 198,731 shares of our common stock in the open market for$3.0 million , since the initiation of our repurchase plan of up to$10 million , announced inAugust 2022 .
______________________________
1Adjusted EBITDA, Adjusted net income and Adjusted earnings per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s 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.
“During the second half of last quarter and through
“Our strategy remains to position our fleet and liquidity to deal with and take advantage of both the current environment and the expected developments in the markets. Most of our fleet is exposed to the market by being employed in short term or market linked contracts. At the same time, we selectively use the FFA markets to secure in the near-term rate levels for our vessels which we consider as profitable. We also continuously evaluate investment opportunities in modern vessels having built sufficient liquidity to grow organically by 20-30% if we identify accretive opportunities for our shareholders.”
“Our net revenues for the first quarter of 2023 were lower by 38.6% as compared to the first quarter of 2022. As a result of the depressed market rates, our vessels earned 56.7% lower average time charter equivalent rates during the quarter as compared to the first quarter of 2022. This effect was slightly offset by the increased number of vessels owned and operated in the first quarter of 2023 as compared to the same period of 2022.
“Vessel operating expenses were
“Adjusted EBITDA during the first quarter of 2023 was
First Quarter 2023 Results:
For the first quarter of 2023, the Company reported total net revenues of
Voyage expenses, net for the first quarter of 2023 were
Vessel operating expenses increased to
Management fees for the period were
Similarly, general and administrative expenses were
In the first quarter of 2023 one of our vessels was drydocked in order to pass her intermediate survey, which was completed in the second quarter of 2023. The above drydocking expenses amounted to
Interest and other financing costs for the first quarter of 2023 increased to
For the three months ended
On average, 10.00 vessels were owned and operated during the first quarter of 2023 earning an average time charter equivalent rate of
Adjusted EBITDA for the first quarter of 2023 was
Basic and diluted loss per share for the first quarter of 2023 was
Excluding the effect on the earnings for the quarter of the unrealized (gain) / loss on derivatives, the adjusted earnings for the quarter ended
Fleet Profile:
The
Type | Dwt | Year Built | Employment(*) | TCE Rate ($/day) | ||
Dry Bulk Vessels | ||||||
EKATERINI | Kamsarmax | 82,000 | 2018 | TC until Mar-25 | Hire 105.5% of the Average Baltic Kamsarmax P5TC(**) index | |
XENIA | Kamsarmax | 82,000 | 2016 | TC until Mar-24 | Hire 105.5% of the Average Baltic Kamsarmax P5TC(**) index | |
ALEXANDROS P. | Ultramax | 63,500 | 2017 | TC until Jul-23 | ||
GOOD HEART | Ultramax | 62,996 | 2014 | TC until Jun-23(***) | ||
MOLYVOS LUCK | Supramax | 57,924 | 2014 | TC until May-23 | ||
EIRINI P | Panamax | 76,466 | 2004 | TC until Oct-23 | ||
Panamax | 76,440 | 2005 | TC until Jun-23 | |||
STARLIGHT | Panamax | 75,845 | 2004 | TC until May-23 | ||
TASOS | Panamax | 75,100 | 2000 | TC until Jul-23 | ||
BLESSED LUCK | Panamax | 76,704 | 2004 | TC until Jan-24 | ||
Total Dry Bulk Vessels | 10 | 728,975 |
Note:
(*) TC denotes time charter. Charter duration indicates the earliest redelivery date.
(**) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.
(***) Vessel has missed her lay/can period due to
Summary Fleet Data:
Three months, ended | Three months, ended | |||
FLEET DATA | ||||
Average number of vessels (1) | 9.54 | 10.00 | ||
Calendar days for fleet (2) | 859.0 | 900.0 | ||
Scheduled off-hire days incl. laid-up (3) | 27.0 | 6.0 | ||
Available days for fleet (4) = (2) - (3) | 832.0 | 894.0 | ||
Commercial off-hire days (5) | 0.0 | 2.2 | ||
Operational off-hire days (6) | 3.0 | 2.5 | ||
Voyage days for fleet (7) = (4) - (5) - (6) | 829.0 | 889.3 | ||
Fleet utilization (8) = (7) / (4) | 99.6% | 99.5% | ||
Fleet utilization, commercial (9) = ((4) - (5)) / (4) | 100.0% | 99.8% | ||
Fleet utilization, operational (10) = ((4) - (6)) / (4) | 99.6% | 99.7% | ||
AVERAGE DAILY RESULTS | ||||
Time charter equivalent rate (11) | 24,636 | 10,674 | ||
Vessel operating expenses excl. drydocking expenses (12) | 5,737 | 6,065 | ||
General and administrative expenses (13) | 873 | 888 | ||
Total vessel operating expenses (14) | 6,610 | 6,953 | ||
Drydocking expenses (15) | 1,050 | 564 |
(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 owned by us 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 are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.
(4) Available days. We define available days as the total number of Calendar days in a period net of scheduled off-hire days incl. laid up. 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 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, pool agreements 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 include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and related party 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, 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) 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,
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 “EuroDry” to the operator and/or conference ID 13738854.
Click here for additional participant 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.eurodry.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 first quarter ended
Unaudited Consolidated Condensed Statements of Operations (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
2022 | 2023 | |||
Revenues | ||||
Time charter revenue | 19,421,722 | 9,317,850 | ||
Voyage charter revenue | - | 2,609,775 | ||
Commissions | (1,143,022 | ) | (585,657 | ) |
Net revenues | 18,278,700 | 11,341,968 | ||
Operating expenses / (income) | ||||
Voyage expenses, net | (1,001,826 | ) | 2,435,123 | |
Vessel operating expenses | 4,228,791 | 4,690,685 | ||
Drydocking expenses | 902,209 | 507,827 | ||
Vessel depreciation | 2,458,246 | 2,534,469 | ||
Related party management fees | 699,075 | 767,455 | ||
General and administrative expenses | 749,679 | 799,549 | ||
Total operating expenses, net | 8,036,174 | 11,735,108 | ||
Operating income / (loss) | 10,242,526 | (393,140 | ) | |
Other income / (expenses) | ||||
Interest and other financing costs | (648,318 | ) | (1,466,919 | ) |
Gain on derivatives, net | 895,669 | 100,974 | ||
Foreign exchange gain / (loss) | 4,885 | (13,464 | ) | |
Interest income | 171 | 232,209 | ||
Other income / (expenses), net | 252,407 | (1,147,200 | ) | |
Net income / (loss) | 10,494,933 | (1,540,340 | ) | |
Earnings / (loss) per share, basic | 3.69 | (0.55 | ) | |
Weighted average number of shares, basic | 2,847,091 | 2,803,049 | ||
Earnings / (loss) per share, diluted | 3.64 | (0.55 | ) | |
Weighted average number of shares, diluted | 2,879,436 | 2,803,049 |
Unaudited Consolidated Condensed Balance Sheets (All amounts expressed in | ||||
2022 | 2023 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | 34,042,150 | 20,364,410 | ||
Trade accounts receivable, net | 7,147,833 | 6,130,132 | ||
Other receivables | 346,066 | 1,988,366 | ||
Inventories | 1,057,652 | 2,061,744 | ||
Restricted cash | 1,195,863 | 1,829,692 | ||
Due from related companies | 2,416,180 | - | ||
Prepaid expenses | 249,024 | 305,175 | ||
Derivatives | 1,437,398 | 290,924 | ||
Total current assets | 47,892,166 | 32,970,443 | ||
Fixed assets: | ||||
Vessels, net | 149,022,023 | 146,541,270 | ||
Long-term assets: | ||||
Derivatives | 705,970 | - | ||
Restricted cash | 1,885,000 | 1,785,000 | ||
Total assets | 199,505,159 | 181,296,713 | ||
LIABILITIES, AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Long term bank loans, current portion | 22,858,087 | 10,317,900 | ||
Trade accounts payable | 2,989,431 | 1,680,701 | ||
Accrued expenses | 1,004,719 | 982,661 | ||
Deferred revenue | 351,636 | 510,007 | ||
Due to related companies | - | 36,839 | ||
Total current liabilities | 27,203,873 | 13,528,108 | ||
Long-term liabilities: | ||||
Long term bank loans, net of current portion | 58,360,169 | 56,018,193 | ||
Derivatives | - | 92,860 | ||
Total liabilities | 85,564,042 | 69,639,161 | ||
Shareholders' equity: | ||||
Common stock (par value | 29,026 | 28,442 | ||
Additional paid-in capital | 69,438,938 | 68,696,297 | ||
Retained earnings | 44,473,153 | 42,932,813 | ||
Total shareholders' equity | 113,941,117 | 111,657,552 | ||
Total liabilities and shareholders' equity | 199,505,159 | 181,296,713 | ||
Unaudited Consolidated Condensed Statements of Cash Flows (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
2022 | 2023 | |||
Cash flows from operating activities: | ||||
Net income / (loss) | 10,494,933 | (1,540,340 | ) | |
Adjustments to reconcile net income / (loss) to net cash provided by operating activities: | ||||
Vessel depreciation | 2,458,246 | 2,534,469 | ||
Amortization and write off of deferred charges | 47,568 | 52,838 | ||
Share-based compensation | 181,680 | 256,897 | ||
Unrealized (gain) / loss on derivatives | (998,189 | ) | 1,945,304 | |
Changes in operating assets and liabilities | (2,091,080 | ) | (398,374 | ) |
Net cash provided by operating activities | 10,093,158 | 2,850,794 | ||
Cash flows from investing activities: | ||||
Cash paid for vessel acquisition | (21,214,125 | ) | - | |
Cash paid for vessel sale expenses | - | (15,274 | ) | |
Cash paid for vessels capitalized expenses | (446,701 | ) | (44,309 | ) |
Net cash used in investing activities | (21,660,826 | ) | (59,583 | ) |
Cash flows from financing activities: | ||||
Offering expenses paid | (12,427 | ) | - | |
Cash paid for share repurchases | - | (1,000,122 | ) | |
Repayment of long-term debt | (3,785,000 | ) | (14,935,000 | ) |
Net cash used in financing activities | (3,797,427 | ) | (15,935,122 | ) |
Net decrease in cash, cash equivalents and restricted cash | (15,365,095 | ) | (13,143,911 | ) |
Cash, cash equivalents and restricted cash at beginning of period | 29,527,366 | 37,123,013 | ||
Cash, cash equivalents and restricted cash at end of period | 14,162,271 | 23,979,102 |
Cash breakdown | ||||
Cash and cash equivalents | 11,386,197 | 20,364,410 | ||
Restricted cash, current | 456,074 | 1,829,692 | ||
Restricted cash, long term | 2,320,000 | 1,785,000 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 14,162,271 | 23,979,102 | ||
Reconciliation of Net income / (loss) to Adjusted EBITDA (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
Net income / (loss) | 10,494,933 | (1,540,340 | ) | |
Interest and other financing costs, net (incl. interest income) | 648,147 | 1,234,710 | ||
Vessel depreciation | 2,458,246 | 2,534,469 | ||
Unrealized gain on Forward Freight Agreement derivatives | - | (42,195 | ) | |
(Gain) / loss on interest rate swap derivatives | (895,669 | ) | 177,598 | |
Adjusted EBITDA | 12,705,657 | 2,364,242 | ||
Adjusted EBITDA Reconciliation:
Reconciliation of Net income / (loss) to Adjusted net income (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
Net income / (loss) | 10,494,933 | (1,540,340 | ) | |
Unrealized (gain) / loss on derivatives | (998,189 | ) | 1,945,305 | |
Adjusted net income | 9,496,744 | 404,965 | ||
Adjusted earnings per share, basic | 3.34 | 0.14 | ||
Weighted average number of shares, basic | 2,847,091 | 2,803,049 | ||
Adjusted earnings per share, diluted | 3.30 | 0.14 | ||
Weighted average number of shares, diluted | 2,879,436 | 2,803,049 | ||
Adjusted net income and Adjusted earnings per share Reconciliation:
About
The Company has a fleet of 10 vessels, including 5 Panamax drybulk carriers, 2 Ultramax drybulk carriers, 2 Kamsarmax drybulk carriers and 1 Supramax drybulk carrier. EuroDry’s 10 drybulk carriers have a total cargo capacity of 728,975 dwt.
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, competitive factors in the market in which the Company operates; risks associated with operations outside
Visit our website www.eurodry.gr
Company Contact | Investor Relations / Financial Media |
Chief Financial Officer Watchung, NJ07069 Tel. (908) 301-9091 E-mail: aha@eurodry.gr | Capital Link, Inc. Tel. (212) 661-7566 E-mail: eurodry@capitallink.com |
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