First Quarter 2024 Financial Highlights:
- Total net revenues of
$46.7 million . Net income of$20.0 million or$2.89 and$2.87 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was$18.5 million or$2.67 and$2.66 per share basic and diluted. - Adjusted EBITDA1 was
$24.6 million . - An average of 19.6 vessels were owned and operated during the first quarter of 2024 earning an average time charter equivalent rate of
$27,806 per day. - Declared a quarterly dividend of
$0.60 per share for the first quarter of 2024 payable on or aboutJune 19, 2024 to shareholders of record onJune 12, 2024 , as part of the Company’s common stock dividend plan. - As of
May 23, 2024 we had repurchased 400,705 of our common stock in the open market for a total of about$8.2 million , since the initiation of our share repurchase plan of up to$20 million announced inMay 2022 .
“During 2024 and through mid-May of 2024, the containership markets continued their recovery mainly on the back of higher demand for vessels which resulted from longer trade routes. The latter resulted when liner companies decided to avoid going through the
“The above mixed supply situation and a demand for containerized trade that depends not only on the economic trends across the globe but also on regional conflicts and geopolitical developments introduce significant uncertainties in the market. We believe that the best way to navigate through that is to remain focused on delivering our charter contract backlog strengthening our balance sheet and enhancing our liquidity. Operationally, our main priority is to safely and efficiently operate our fleet to reduce our carbon footprint through our newbuilding program and retrofits of our existing vessels.
“In parallel, we continuously evaluate investment opportunities that are accretive to our earnings while at the same time we continue to reward our shareholders by again declaring a
“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, were slightly lower during the first quarter of 2024 compared to the same quarter of last year.
“Adjusted EBITDA1 during the first quarter of 2024 was
“As of
First Quarter 2024 Results:
For the first quarter of 2024, the Company reported total net revenues of
Voyage expenses for the first quarter of 2024 amounted to
Vessel operating expenses for the first quarter of 2024 amounted to
Depreciation expense for the first quarter of 2024 amounted to
Related party management fees for the first quarter of 2024 increased to
In the first quarter of 2024 three of our vessels completed their special survey with drydock for a total cost of
General and administrative expenses slightly increased to
Finally, during the first quarter of 2023, we had other operating income of
Interest and other financing costs for the first quarter of 2024 amounted to
Adjusted EBITDA1 for the first quarter of 2024 was
Basic and diluted earnings per share for the first quarter of 2024 was
Excluding the effect on the income for the quarter of the unrealized loss / (gain) on derivatives, the amortization of below market time charters acquired, the depreciation charged due to the increased value of the vessels acquired with below market time charters and the gain on sale of vessel, the adjusted earnings per share for the quarter ended
Fleet Profile:
The
Type | Dwt | TEU | Year Built | Employment(*) | TCE Rate ($/day) | ||
Container Carriers | |||||||
MARCOS V (*) | Intermediate | 72,968 | 6,350 | 2005 | TC until Dec-24 then until Jul-25 | ||
SYNERGY | Intermediate | 50,726 | 4,253 | 2009 | TC until Aug-24 | ||
SYNERGY | Intermediate | 50,726 | 4,253 | 2008 | TC until Mar-25 | ||
SYNERGY OAKLAND (*) | Intermediate | 50,787 | 4,253 | 2009 | TC until May-26 | ||
SYNERGY KEELUNG (*) | Intermediate | 50,969 | 4,253 | 2009 | TC until Apr-25 | ||
EMMANUEL P (*) | Intermediate | 50,796 | 4,250 | 2005 | TC until Apr-25 | ||
RENA P (*) | Intermediate | 50,796 | 4,250 | 2007 | TC until Apr-25 | ||
Feeder | 42,165 | 3,100 | 2007 | TC until May-26 | |||
GREGOS (*) | Feeder | 37,237 | 2,800 | 2023 | TC until Apr-26 | ||
TERATAKI (*) | Feeder | 37,237 | 2,800 | 2023 | TC until Jul-26 | ||
TENDER SOUL (*) | Feeder | 37,237 | 2,800 | 2024 | TC until Oct-24 | ||
LEONIDAS Z (*) | Feeder | 37,237 | 2,800 | 2024 | TC until Apr-26 | ||
Feeder | 35,600 | 2,788 | 2004 | TC until June-24 | |||
EVRIDIKI G (*) | Feeder | 34,677 | 2,556 | 2001 | TC until Feb-25 | ||
EM | Feeder | 34,654 | 2,556 | 2001 | TC until Feb-25 | ||
DIAMANTIS P (*) | Feeder | 30,360 | 2,008 | 1998 | TC until Oct-24 | ||
MONICA (*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-25 | ||
EM SPETSES (*) | Feeder | 23,224 | 1,740 | 2007 | TC until Jul-24 | ||
JONATHAN P (*) | Feeder | 23,357 | 1,740 | 2006 | TC until Sep-24 | ||
Feeder | 23,351 | 1,740 | 2005 | TC until Feb-25 | |||
JOANNA (*) | Feeder | 22,301 | 1,732 | 1999 | TC until May-24 then until Aug-24 | ||
AEGEAN EXPRESS (*) | Feeder | 18,581 | 1,439 | 1997 | TC until Oct-24 | ||
Total Container Carriers | 22 | 837,248 | 66,261 |
Vessels under construction | Type | Dwt | TEU | To be delivered |
STEPHANIA K (H4249) | Feeder | 22,262 | 1,800 | Q2 2024 |
PEPI STAR (H4250) | Feeder | 22,262 | 1,800 | Q3 2024 |
DEAR PANEL (H4251) | Feeder | 37,237 | 2,800 | Q4 2024 |
SYMEON P (H4252) | Feeder | 37,237 | 2,800 | Q4 2024 |
Total vessels under construction | 4 | 118,998 | 9,200 |
Note: (*)(+) TC denotes time charter. 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 (+).
(**) The vessel was sold and will be delivered to its buyers by
(***) Rate is net of commissions (which are typically 5-6.25%)
Summary Fleet Data:
Three Months, Ended | Three Months, Ended | |||
FLEET DATA | ||||
Average number of vessels (1) | 17.10 | 19.60 | ||
Calendar days for fleet (2) | 1,539.0 | 1,784.0 | ||
Scheduled off-hire days incl. laid-up (3) | - | 78.6 | ||
Available days for fleet (4) = (2) - (3) | 1,539.0 | 1,705.4 | ||
Commercial off-hire days (5) | 28.9 | 3.7 | ||
Operational off-hire days (6) | 37.0 | 2.2 | ||
Voyage days for fleet (7) = (4) - (5) - (6) | 1,473.1 | 1,699.5 | ||
Fleet utilization (8) = (7) / (4) | 95.7 | % | 99.7 | % |
Fleet utilization, commercial (9) = ((4) - (5)) / (4) | 98.1 | % | 99.8 | % |
Fleet utilization, operational (10) = ((4) - (6)) / (4) | 97.6 | % | 99.9 | % |
AVERAGE DAILY RESULTS (usd/day) | ||||
Time charter equivalent rate (11) | 29,231 | 27,806 | ||
Vessel operating expenses excl. drydocking expenses (12) | 7,333 | 7,267 | ||
General and administrative expenses (13) | 741 | 696 | ||
Total vessel operating expenses (14) | 8,074 | 7,963 | ||
Drydocking expenses (15) | 387 | 3,163 |
(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. TCE, which is a non-GAAP measure, provides additional meaningful information in conjunction with voyage revenues, 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) 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 “Euroseas” to the operator and/or conference ID 13746787.
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 on the first quarter ended
Unaudited Consolidated Condensed Statements of Operations (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
2023 | 2024 | |||
Revenues | ||||
Time charter revenue | 43,459,926 | 48,294,639 | ||
Commissions | (1,523,309 | ) | (1,576,265 | ) |
Net revenues | 41,936,617 | 46,718,374 | ||
Operating expenses / (income) | ||||
Voyage expenses | 399,746 | 1,038,133 | ||
Vessel operating expenses | 9,844,217 | 11,372,079 | ||
Drydocking expenses | 595,368 | 5,642,834 | ||
Vessel depreciation | 5,274,583 | 5,441,337 | ||
Related party management fees | 1,440,575 | 1,591,558 | ||
Gain on sale of vessel | (5,158,370 | ) | - | |
General and administrative expenses | 1,140,647 | 1,242,497 | ||
Other operating income | (1,290,000 | ) | - | |
Total operating expenses, net | 12,246,766 | 26,328,438 | ||
Operating income | 29,689,851 | 20,389,936 | ||
Other income / (expenses) | ||||
Interest and other financing costs | (887,671 | ) | (1,800,154 | ) |
(Loss) / gain on derivatives, net | (244,250 | ) | 863,006 | |
Foreign exchange (loss) / gain | (34,670 | ) | 1,992 | |
Interest income | 231,348 | 547,394 | ||
Other expenses, net | (935,243 | ) | (387,762 | ) |
Net income | 28,754,608 | 20,002,174 | ||
Earnings per share, basic | 4.11 | 2.89 | ||
Weighted average number of shares, basic | 6,998,213 | 6,923,331 | ||
Earnings per share, diluted | 4.10 | 2.87 | ||
Weighted average number of shares, diluted | 7,014,090 | 6,969,324 |
Unaudited Consolidated Condensed Balance Sheets (All amounts expressed in | |||||
2023 | 2024 | ||||
ASSETS | |||||
Current Assets: | |||||
Cash and cash equivalents | 58,613,304 | 49,372,871 | |||
Trade accounts receivable | 2,037,940 | 2,708,793 | |||
Other receivables | 2,276,116 | 2,958,108 | |||
Inventories | 2,538,342 | 3,059,636 | |||
Restricted cash | 2,994 | 320,817 | |||
Prepaid expenses | 502,833 | 1,509,462 | |||
Derivatives | - | 396,016 | |||
Asset held for sale | - | 4,050,382 | |||
Total current assets | 65,971,529 | 64,376,085 | |||
Fixed assets: | |||||
Vessels, net | 267,626,155 | 308,064,777 | |||
Long-term assets: | |||||
Advances for vessels under construction | 85,375,650 | 87,659,995 | |||
Restricted cash | 5,700,000 | 5,700,000 | |||
Derivatives | - | 143,153 | |||
Total assets | 424,673,334 | 465,944,010 | |||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Long-term bank loans, current portion | 30,839,541 | 38,606,573 | |||
Trade accounts payable | 5,746,510 | 8,789,681 | |||
Accrued expenses | 1,865,615 | 5,656,286 | |||
Accrued dividends | 105,250 | 159,850 | |||
Derivatives | 56,042 | - | |||
Deferred revenue | 11,275,911 | 11,472,733 | |||
Due to related company | 1,298,941 | 2,348,497 | |||
Total current liabilities | 51,187,810 | 67,033,620 | |||
Long-term liabilities: | |||||
Long-term bank loans, net of current portion | 99,161,871 | 108,788,087 | |||
Derivatives | 168,138 | - | |||
Other non-current liabilities | - | 1,049,428 | |||
Fair value of below market time charters acquired | 7,580,306 | 6,348,530 | |||
Total long-term liabilities | 106,910,315 | 116,186,045 | |||
Total liabilities | 158,098,125 | 183,219,665 | |||
Shareholders’ equity: | |||||
Common stock (par value | 210,430 | 210,407 | |||
Additional paid-in capital | 258,434,237 | 258,789,820 | |||
Retained earnings | 7,930,542 | 23,724,118 | |||
Total shareholders’ equity | 266,575,209 | 282,724,345 | |||
Total liabilities and shareholders’ equity | 424,673,334 | 465,944,010 |
Unaudited Consolidated Condensed Statements of Cash Flows (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
2023 | 2024 | |||
Cash flows from operating activities: | ||||
Net income | 28,754,608 | 20,002,174 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Vessel depreciation | 5,274,583 | 5,441,337 | ||
Amortization and write off of deferred charges | 92,296 | 132,307 | ||
Share-based compensation | 337,167 | 355,560 | ||
Gain on sale of vessel | (5,158,370) | - | ||
Unrealized loss / (gain) on derivatives | 601,600 | (763,350) | ||
Amortization of fair value of below market time charters acquired | (3,797,515) | (1,231,776) | ||
Changes in operating assets and liabilities | (1,353,666) | 1,257,552 | ||
Net cash provided by operating activities | 24,750,703 | 25,193,804 | ||
Cash flows from investing activities: | ||||
Cash paid for vessels under construction | (39,487,240) | (18,789,564) | ||
Cash paid for vessels acquisitions and vessel improvements | (314,988) | (28,433,791) | ||
Net proceeds from sale of a vessel | 10,100,598 | - | ||
Net cash used in investing activities | (29,701,630) | (47,223,355) | ||
Cash flows from financing activities: | ||||
Cash paid for share repurchase | (1,859,943) | - | ||
Dividends paid | (3,495,359) | (4,153,999) | ||
Loan arrangement fees paid | (221,000) | (378,000) | ||
Offering expenses paid | (56,877) | - | ||
Proceeds from long-term bank loans | 26,000,000 | 27,000,000 | ||
Repayment of long-term bank loans | (12,985,000) | (9,361,060) | ||
Net cash provided by financing activities | 7,381,821 | 13,106,941 | ||
Net increase / (decrease) in cash, cash equivalents, and restricted cash | 2,430,894 | (8,922,610) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 31,438,506 | 64,316,298 | ||
Cash, cash equivalents, and restricted cash at end of period | 33,869,400 | 55,393,688 | ||
Cash breakdown | ||||
Cash and cash equivalents | 29,824,554 | 49,372,871 | ||
Restricted cash, current | 144,846 | 320,817 | ||
Restricted cash, long term | 3,900,000 | 5,700,000 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | 33,869,400 | 55,393,688 |
Reconciliation of Net Income to Adjusted EBITDA (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
Net income | 28,754,608 | 20,002,174 | ||
Interest and other financing costs, net (incl. interest income) | 656,323 | 1,252,760 | ||
Vessel depreciation | 5,274,583 | 5,441,337 | ||
Gain on sale of vessel | (5,158,370 | ) | - | |
Loss / (gain) on interest rate swap derivatives, net | 244,250 | (863,006 | ) | |
Amortization of below market time charters acquired | (3,797,515 | ) | (1,231,776 | ) |
Adjusted EBITDA | 25,973,879 | 24,601,489 |
Adjusted EBITDA Reconciliation:
Reconciliation of Net Income to Adjusted Net Income (All amounts expressed in | ||||
Three Months Ended | Three Months Ended | |||
Net income | 28,754,608 | 20,002,174 | ||
Unrealized loss / (gain) on derivatives | 601,600 | (763,350 | ) | |
Gain on sale of vessel | (5,158,370 | ) | - | |
Amortization of below market time charters acquired | (3,797,515 | ) | (1,231,776 | ) |
Depreciation on the portion of the consideration of vessels acquired with attached time charters allocated to below market time charters | 1,278,771 | 497,062 | ||
Adjusted net income | 21,679,094 | 18,504,110 | ||
Adjusted earnings per share, basic | 3.1 | 2.67 | ||
Weighted average number of shares, basic | 6,998,213 | 6,923,331 | ||
Adjusted earnings per share, diluted | 3.09 | 2.66 | ||
Weighted average number of shares, diluted | 7,014,090 | 6,969,324 |
Adjusted net income and Adjusted earnings per share Reconciliation:
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 non-cash income and expense items that are reflected in our statement of cash flows.
About
The Company has a fleet of 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships.
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
Visit the Company’s website www.euroseas.gr
Company Contact | Investor Relations / Financial Media |
Chief Financial Officer Tel. (908) 301-9091 E-mail: aha@euroseas.gr | Capital Link, Inc. 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 US GAAP (GAAP) and should not be used in isolation or as a substitute for
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