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Maroussi, Athens, Greece - February 18, 2016 Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today its results for the three month period and full year ended December 31, 2015. Fourth Quarter 2015 Highlights: • Total net revenues of $8.8 million. Net loss of $3.6 million; net loss attributable to common shareholders (after a $0.4 million of dividend on Series B Preferred Shares) of $4.0 million or $0.50 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $3.0 million or $0.36 loss per share basic and diluted. • Adjusted EBITDA1 was 0.1 million. • An average of 13.97 vessels were owned and operated during the fourth quarter of 2015 earning an average time charter equivalent rate of $6,374 per day. • The Company declared its eighth dividend of $0.4 million on its Series B Preferred Shares; the dividend was paid in-kind by issuing additional Series B preferred shares. Full year 2015 Highlights: • Total net revenues of $37.7 million. Net loss of $13.7 million; net loss attributable to common shareholders (after a $1.6 million of dividend on Series B Preferred Shares) of $15.3 million or $2.39 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $13.9 million or $2.17 loss per share basic and diluted. • Adjusted EBITDA1 was $0.2 million. • An average of 14.74 vessels were owned and operated during the twelve months of 2015 earning an average time charter equivalent rate of $7,570 per day. (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: "Rates in the containership sector and particularly in the feeder size where we operate declined back to their levels of the beginning of last year from the higher levels observed during the second and third quarters. Overall the idle fleet is at higher levels compared to a year ago but it is mostly comprised of larger vessels indicating feeders like our ships are in better position to benefit from increases in demand. "The drybulk sector is at the worst levels seen over the last thirty years with the BDI breaking its historical low levels. A mix of demand and supply related factors are equally responsible for the low market levels. Looking forward, increased scrapping and increased delays and cancellation of newbuilding orders could provide some foundation for the market to arrest the declines and, perhaps, benefit from demand recovery. We expect, though, a challenging market environment throughout 2016. As our vessels are mainly employed through short term contracts and index linked charters, albeit at below cost levels for the time being, we should be able to make the most from an increase in freight rates when this materializes. "At the same time, we are in the process of completing arrangements for taking delivery of the first of our newbuilding vessels and making similar arrangements for the remaining two deliveries we have in 2016 around the middle of the year. Furthermore, the extremely low vessel values in the drybulk market could present opportunities to modernize our fleet for minimal incremental investment and we are evaluating alternatives to exploit such possibilities should they become available to us." Tasos Aslidis, Chief Financial Officer of Euroseas, commented: "The operating results of the fourth quarter of 2015 reflect the extremely low level of the drybulk market rates during the quarter and the lower level of containership rates as well as the lower number of vessels we operated due to the sale of 4 ships. On average during the fourth quarter of 2015, our vessels earned on average about 18.5% per day per vessel less than in the fourth quarter of 2014. Adjusted EBITDA during the fourth quarter of 2015 was $0.1 million, approximately $0.1 million lower than EBITDA in the fourth quarter of last year. "Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, decreased approximately 9.7% during the fourth quarter of 2015 compared to the same quarter of last year, while for the full year 2015 the decrease was approximately 3.9%. Drydocking expenses expressed on a per vessel per day basis were lower by 4.3% for the full year 2015 and lower by 20.7% for the fourth quarter of 2015 as compared to the same periods in 2014, and were a function of the number of vessels undergoing drydocking in the respective periods. As always, we want to emphasize that cost control remains a key component of our strategy, especially at depressed markets like at present." "As of December 31, 2015, our outstanding debt was $40.5 million versus restricted and unrestricted cash of approximately $19.2 million. We complied with all our debt covenants as of December 31, 2015." Fourth Quarter 2015 Results: For the fourth quarter of 2015, the Company reported total net revenues of $8.8 million representing a 23.5% decrease over total net revenues of $11.5 million during the fourth quarter of 2014. The Company reported a net loss for the period of $3.6 million and a net loss attributable to common shareholders of $4.0 million, as compared to a net loss of $7.0 million for the fourth quarter of 2014. On average, 13.97 vessels were owned and operated during the fourth quarter of 2015 earning an average time charter equivalent rate of $6,374 per day compared to 15.00 vessels in the same period of 2014 earning an average time charter equivalent rate of $7,823 per day. Depreciation expenses for the fourth quarter of 2015 were $2.4 million, compared to the $3.2 million for the same period of 2014. The results for the fourth quarter of 2015 include a $0.19 million net unrealized gain on derivatives, a $0.08 million net realized loss on derivatives and a $1.2 million combined gain on sale of vessels and impairment loss as compared to $0.05 million net unrealized gain on derivatives, a $3.5 million impairment loss on a vessel and a $0.08 million net realized loss on derivatives for the same period of 2014. Adjusted EBITDA for the fourth quarter of 2015 was $0.1, million about $0.1 million lower compared to the same of the fourth quarter of 2014. Please see below for Adjusted EBITDA reconciliation to net loss and cash flow provided by operating activities. Basic and diluted loss per share attributable to common shareholders for the fourth quarter of 2015 was $0.5 calculated on 8,093,610 basic and diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $1.28 for the fourth quarter of 2014, calculated on 5,721,925 basic and diluted weighted average number of shares outstanding. Excluding the effect on the loss attributable to common shareholders for the quarter, of the unrealized gain on derivatives, the realized loss on derivatives in the fourth quarter of 2015 and the gain on sale of vessels and impairment loss, the adjusted net loss per share attributable to common shareholders for the quarter ended December 31, 2015 would have been $0.36 per share basic and diluted compared to net loss of $0.67 per share basic and diluted for the quarter ended December 31, 2014. Usually, security analysts do not include the above items in their published estimates of earnings per share. Full Year 2015 Results: For the full year of 2015, the Company reported total net revenues of $37.7 million representing a 7.3% decrease over total net revenues of $40.6 million during the twelve months of 2014. The Company reported a net loss for the period of $13.7 million, net loss attributable to common shareholders of $15.3 million, as compared to a net loss of $17.9 million for the twelve months of 2014. On average, 14.74 vessels were owned and operated during 2015 earning an average time charter equivalent rate of $7,570 per day compared to 14.60 vessels in the same period of 2014 earning on average $7,534 per day. Depreciation expenses for 2015 were $11.0 million compared to $12.1 million during the same period of 2014. The results for the twelve months of 2015 include a $0.05 million unrealized gain on derivatives, a $0.3 million realized loss on derivatives and a $1.2 million combine gain on sale of vessels and impairment loss, as compared to a $0.7 million unrealized gain on derivatives, a $0.8 million realized loss on derivatives, and a $3.5 million impairment loss on a vessel for the same period of 2014. Adjusted EBITDA for 2015 was $0.2 million increasing from the $(0.5) million achieved during the twelve months of 2014. Please see below for Adjusted EBITDA reconciliation to net loss and cash flow provided by operating activities. Basic and diluted loss per share attributable to common shareholders for 2015 was $2.39 calculated on 6,410,794 basic and diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $3.53 for 2014, calculated on 5,479,418 basic and diluted weighted average number of shares outstanding. Excluding the effect, on the loss attributable to common shareholders of the unrealized gain on derivatives, realized loss on derivatives and the gain on sale of vessels and impairment loss, the adjusted net loss per share attributable to common shareholders for 2015 would have been $2.17 compared to a loss of $2.88 per share basic and diluted for 2014. Usually, security analysts do not include the above items in their published estimates of earnings per share. Full report at: www.euroseas.gr Euroseas Ltd. Press Release 
The 1993-built, 69,268 dwt drybulk carrier "Aristides NP" |
