Maroussi, Athens, Greece – March 5, 2018
Euroseas Ltd. (NASDAQ: ESEA) (the “Company” or “Euroseas”), 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, 2017.
Fourth Quarter 2017 Highlights:
• Total net revenues of $13.5 million. Net income attributable to common shareholders of $1.5 million or $0.13 earnings per share basic and diluted. This income includes, amongst other items, a $0.5 million dividend on Series B Preferred Shares and a $0.3 million gain on the sale of M/V Aggeliki P. Adjusted net income attributable to common shareholders (1) for the period was $1.1 million or $0.10 earnings per share basic and diluted.
• Adjusted EBITDA (1) was $4.4 million.
• An average of 16.3 vessels were owned and operated during the fourth quarter of 2017 earning an average time charter equivalent rate of $9,083 per day.
• The Company declared its sixteenth dividend of $0.5 million on its Series B Preferred Shares; the dividend was paid in-kind by issuing additional Series B Preferred Shares.
Full year 2017 Highlights:
• Total net revenues of $42.9 million. Net loss attributable to common shareholders of $7.9 million or $0.71 loss per share basic and diluted. This loss includes, among other items, a $1.8 million dividend on Series B Preferred Shares and a $4.6 million loss on write-down of M/V Aggeliki P and M/V Monica P, which were held for sale since September 30, 2017. M/V Aggeliki P was sold in December 2017. Adjusted net loss attributable to common shareholders (1) for the period was $4.2 million or $0.38 loss per share basic and diluted.
• Adjusted EBITDA (1) was $9.3 million.
• An average of 14.2 vessels were owned and operated during the twelve months of 2017 earning an average time charter equivalent rate of $8,290 per day.
Aristides Pittas, Chairman and CEO of Euroseas, commented: “During the last quarter of 2017, Euroseas returned to profitability not only because of the recovery of the drybulk and containership markets but also due to its continuous efforts to control its operating, financial and capital cost structure and cash flows. We believe that, over the last couple of years, we have positioned the Company to benefit from the unfolding market recovery by renewing and expanding our fleet in both sectors we operate. In the drybulk sector, after the upcoming delivery of our Kamsarmax newbuilding and the planned sale of our elder handymax unit, we will own a fleet of six vessels from ultramax to kamsarmax size, three Chinese-built in the last two years and three Japanese-built of 2000-04 vintage. In the containership sector, we have a fleet of eleven medium age and elder feeder units that produce earnings at present market levels with low capital investment. ”
“At the same time, we are optimistic about the prospects for both bulkers and containerships as demand for ships is expected by most analysts to remain strong over the next couple of years on the back of strong worldwide economic growth and modest supply pressure. As we have stated in the past, we believe, we can provide a publicly-listed consolidation platform in both sectors. The latter along with accretive acquisitions remain our main strategy for 2018.”
Tasos Aslidis, Chief Financial Officer of Euroseas, commented: “The operating results of the fourth quarter of 2017 reflect the recovered level of charter rates in both the drybulk and containership markets. On average during the fourth quarter of 2017, our vessels earned 19.4% higher time charter equivalent rates than in the fourth quarter of 2016.” “Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, decreased approximately 4.6% during the fourth quarter of 2017 compared to the same quarter of last year, while for the full year 2017 the decrease was approximately 3.8%. As always, we want to emphasize that cost control remains a key component of our strategy.”
“As of December 31, 2017, our outstanding debt (excluding the unamortized loan fees) was $74.4 million versus restricted and unrestricted cash of approximately $13.2 million. We complied with all our debt covenants as of December 31, 2017.”
(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.
Euroseas Ltd. Press Release