Third Quarter 2021 Highlights:
- Total net revenues for the quarter of
$19.5 million . - Net income attributable to common shareholders of
$11.8 million or$4.47 and$4.41 earnings per share basic and diluted, respectively, inclusive of unrealized gain on derivatives. - Adjusted net income attributable to common shareholders1 for the quarter of
$10.1 million , or,$3.84 and$3.79 per share basic and diluted, respectively. - Adjusted EBITDA1 was
$13.0 million . - An average of 8.1 vessels were owned and operated during the third quarter of 2021 earning an average time charter equivalent rate of
$28,103 per day. - The Company declared a dividend of
$0.3 million on its Series B Preferred Shares. The dividend will be paid in cash.
______________
1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) 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.
Nine Months 2021 Highlights:
- Total net revenues of
$42.1 million . - Net income attributable to common shareholders was
$14.2 million , or$5.84 and$5.74 earnings per share basic and diluted, respectively, inclusive of unrealized loss on derivatives and a loss on debt extinguishment. - Adjusted net income attributable to common shareholders1 for the period was
$18.0 million or$7.42 and$7.29 adjusted earnings per share basic and diluted, respectively. - Adjusted EBITDA1 was
$26.3 million . - An average of 7.5 vessels were owned and operated during the first nine months of 2021 earning an average time charter equivalent rate of
$22,232 per day.
Recent developments
In
In
In the above environment, as previously announced, we expanded our exposure to the market by acquiring in
Overall, we remain positive about the prospects of the market and continue to evaluate opportunities for investment or any other form of cooperation exploiting our public listing and operating platform.”
Adjusted EBITDA during the third quarter of 2021 was
Third Quarter 2021 Results:
For the third quarter of 2021, the Company reported total net revenues of
Vessel operating expenses were
Interest and other financing costs for the third quarter of 2021 remained unchanged at
On average, 8.1 vessels were owned and operated during the third quarter of 2021 earning an average time charter equivalent rate of
Adjusted EBITDA for the third quarter of 2021 was
Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2021 was
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized gain on derivatives, the adjusted earnings attributable to common shareholders for the quarter ended
First Nine Months 2021 Results:
For the first nine months of 2021, the Company reported total net revenues of
Interest and other financing costs for the first nine months of 2021 amounted to
Adjusted EBITDA for the nine months of 2021 was
Basic and diluted earnings per share attributable to common shareholders for the first nine months of 2021 was
Excluding the effect on the income attributable to common shareholders for the first nine months of the year of the unrealized loss on derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders for the nine-month period ended
Fleet Profile:
The
Type | Dwt | Year Built | Employment(*) | TCE Rate ($/day) | ||
Dry Bulk Vessels | ||||||
EKATERINI | Kamsarmax | 82,000 | 2018 | TC until Mar-22 | Hire 106% of the Average Baltic Kamsarmax P5TC index (**) | |
XENIA | Kamsarmax | 82,000 | 2016 | TC until Aug-22 | Hire 105% of the Average Baltic Kamsarmax P5TC index(**) | |
ALEXANDROS P. | Ultramax | 63,500 | 2017 | TC until Nov-21 | ||
GOOD HEART | Ultramax | 62,996 | 2014 | TC until Nov-21 | ||
EIRINI P | Panamax | 76,466 | 2004 | TC until Apr-22 | Hire 99% of Average BPI(***) 4TC | |
STARLIGHT | Panamax | 75,845 | 2004 | TC until Oct-22 | Hire 98.5% of Average BPI(***) 4TC | |
TASOS | Panamax | 75,100 | 2000 | TC until Nov-21 | ||
PANTELIS | Panamax | 74,020 | 2000 | TC until Feb-22 | ||
BLESSED LUCK | Panamax | 76,704 | 2004 | TC until Apr-22 | ||
Total Dry Bulk Vessels | 9 | 668,631 |
Note: | |
(*) | Represents the earliest redelivery date |
(**) | The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes. |
(***) | BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes. |
Summary Fleet Data:
3 months, ended | 3 months, ended | 9 months, ended | 9 months, ended | |||||
FLEET DATA | ||||||||
Average number of vessels (1) | 7.0 | 8.1 | 7.0 | 7.5 | ||||
Calendar days for fleet (2) | 644.0 | 745.0 | 1,918.0 | 2,045.9 | ||||
Scheduled off-hire days incl. laid-up (3) | 0.0 | 0.0 | 51.2 | 0.0 | ||||
Available days for fleet (4) = (2) - (3) | 644.0 | 745.0 | 1,866.8 | 2,045.9 | ||||
Commercial off-hire days (5) | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Operational off-hire days (6) | 6.5 | 4.3 | 7.1 | 8.1 | ||||
Voyage days for fleet (7) = (4) - (5) - (6) | 637.5 | 740.7 | 1,859.7 | 2,037.8 | ||||
Fleet utilization (8) = (7) / (4) | 98.9% | 99.4% | 99.6% | 99.6% | ||||
Fleet utilization, commercial (9) = ((4) - (5)) / (4) | 100.0% | 100.0% | 100.0% | 100.0% | ||||
Fleet utilization, operational (10) = ((4) - (6)) / (4) | 98.9% | 99.4% | 99.6% | 99.6% | ||||
AVERAGE DAILY RESULTS | ||||||||
Time charter equivalent rate (11) | 11,873 | 28,103 | 8,927 | 22,232 | ||||
Vessel operating expenses excl. drydocking expenses (12) | 5,673 | 5,718 | 5,337 | 5,664 | ||||
General and administrative expenses (13) | 724 | 777 | 858 | 846 | ||||
Total vessel operating expenses (14) | 6,397 | 6,495 | 6,195 | 6,510 | ||||
Drydocking expenses (15) | 82 | 53 | 931 | 47 |
(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 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 days in a period during which each vessel in our fleet was in our possession 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, 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 management fees are calculated by dividing vessel operating expenses 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, 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:
Tomorrow,
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238 - 0669 (
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 on the third quarter ended
Unaudited Consolidated Condensed Statements of Operations
(All amounts expressed in
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
2020 | 2021 | 2020 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Revenues | ||||||||
Time charter revenue | 7,193,251 | 20,718,567 | 16,795,245 | 44,764,161 | ||||
Commissions | (399,715 | ) | (1,262,785 | ) | (917,915 | ) | (2,642,473 | ) |
Net revenues | 6,793,536 | 19,455,782 | 15,877,330 | 42,121,688 | ||||
Operating expenses | ||||||||
Voyage expenses, net | (375,866 | ) | (97,247 | ) | 194,137 | (540,322 | ) | |
Vessel operating expenses | 3,135,569 | 3,651,301 | 8,744,999 | 9,893,244 | ||||
Drydocking expenses | 52,685 | 39,771 | 1,786,008 | 96,945 | ||||
Vessel depreciation | 1,651,870 | 1,983,108 | 4,904,386 | 5,395,583 | ||||
Related party management fees | 518,161 | 608,948 | 1,491,665 | 1,694,773 | ||||
General and administrative expenses | 466,381 | 578,784 | 1,646,536 | 1,729,935 | ||||
Total Operating expenses | (5,448,800 | ) | (6,764,665 | ) | (18,767,731 | ) | (18,270,158 | ) |
Operating income / (loss) | 1,344,736 | 12,691,117 | (2,890,401 | ) | 23,851,530 | |||
Other income / (expenses) | ||||||||
Interest and other financing costs | (616,219 | ) | (555,801 | ) | (1,864,040 | ) | (1,676,973 | ) |
Loss on debt extinguishment | - | - | - | (1,647,654 | ) | |||
Loss on derivatives, net | (178,760 | ) | (75,585 | ) | (821,906 | ) | (5,389,990 | ) |
Foreign exchange (loss) / gain | (12,336 | ) | 4,269 | (8,445 | ) | (643 | ) | |
Interest income | 391 | 54 | 4,041 | 10,463 | ||||
Other expenses, net | (806,924 | ) | (627,063 | ) | (2,690,350 | ) | (8,704,797 | ) |
Net income / (loss) | 537,812 | 12,064,054 | (5,580,751 | ) | 15,146,733 | |||
Dividend Series B Preferred shares | (407,665 | ) | (274,337 | ) | (1,155,677 | ) | (845,262 | ) |
Preferred deemed dividend | - | - | - | (120,000 | ) | |||
Net income / (loss) attributable to common shareholders | 130,147 | 11,789,717 | (6,736,428 | ) | 14,181,471 | |||
Earnings / (loss) per share, basic | 0.06 | 4.47 | (2.97 | ) | 5.84 | |||
Weighted average number of shares, basic | 2,279,730 | 2,634,822 | 2,271,542 | 2,427,810 | ||||
Earnings / (loss) per share, diluted | 0.06 | 4.41 | (2.97 | ) | 5.74 | |||
Weighted average number of shares, diluted | 2,279,730 | 2,675,224 | 2,271,542 | 2,470,726 |
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in
2020 | 2021 | ||||
ASSETS | (unaudited) | ||||
Current Assets: | |||||
Cash and cash equivalents | 938,282 | 17,015,316 | |||
Trade accounts receivable, net | 1,528,055 | 1,657,120 | |||
Other receivables | 460,209 | 946,533 | |||
Inventories | 1,385,280 | 784,958 | |||
Restricted cash | 1,518,036 | 3,640,570 | |||
Prepaid expenses | 226,033 | 107,991 | |||
Total current assets | 6,055,895 | 24,152,488 | |||
Fixed assets: | |||||
Vessels, net | 99,305,990 | 130,622,048 | |||
Long-term assets: | |||||
Restricted cash | 2,150,000 | 1,950,000 | |||
Total assets | 107,511,885 | 156,724,536 | |||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Long term bank loans, current portion | 13,793,754 | 11,395,227 | |||
Trade accounts payable | 1,074,518 | 999,725 | |||
Accrued expenses | 704,508 | 981,080 | |||
Accrued preferred dividends | - | 274,337 | |||
Derivatives | 456,133 | 3,024,485 | |||
Deferred revenue | 246,125 | 1,945,936 | |||
Due to related companies | 2,984,759 | 253,221 | |||
Total current liabilities | 19,259,797 | 18,874,011 | |||
Long-term liabilities: | |||||
Long term bank loans, net of current portion | 37,318,084 | 61,807,377 | |||
Derivatives | 393,899 | 14,938 | |||
Total long-term liabilities | 37,711,983 | 61,822,315 | |||
Total liabilities | 56,971,780 | 80,696,326 | |||
Mezzanine equity: | |||||
Series B Preferred shares (par value | 15,940,713 | 13,060,713 | |||
Shareholders' equity: | |||||
Common stock (par value | 23,482 | 28,442 | |||
Additional paid-in capital | 53,048,060 | 67,229,734 | |||
Accumulated deficit | (18,472,150 | ) | (4,290,679 | ) | |
Total shareholders' equity | 34,599,392 | 62,967,497 | |||
Total liabilities, mezzanine equity and shareholders' equity | 107,511,885 | 156,724,536 | |||
Unaudited Consolidated Condensed Statements of Cash Flows
(All amounts expressed in
Nine Months Ended | Nine Months Ended | ||||
2020 | 2021 | ||||
Cash flows from operating activities: | |||||
Net (loss) / income | (5,580,751 | ) | 15,146,733 | ||
Adjustments to reconcile net (loss) / income to net cash provided by operating activities: | |||||
Vessel depreciation | 4,904,386 | 5,395,583 | |||
Amortization of deferred charges | 105,528 | 250,766 | |||
Share-based compensation | 187,001 | 132,636 | |||
Unrealized loss on derivatives | 602,361 | 2,189,391 | |||
Loss on debt extinguishment | - | 1,647,654 | |||
Changes in operating assets and liabilities | 370,007 | (847,045 | ) | ||
Net cash provided by operating activities | 588,532 | 23,915,718 | |||
Cash flows from investing activities: | |||||
Cash paid for vessel acquisitions | - | (31,637,347 | ) | ||
Cash paid for vessel improvements | (496,316 | ) | (37,891 | ) | |
Net cash used in investing activities | (496,316 | ) | (31,675,238 | ) | |
Cash flows from financing activities: | |||||
Redemption of Series B Preferred shares | - | (3,000,000 | ) | ||
Proceeds from issuance of common stock, net of commissions paid | - | 9,190,013 | |||
Preferred dividends paid | (713,553 | ) | (570,925 | ) | |
Loan arrangement fees paid | - | (648,000 | ) | ||
Proceeds from related party loan | - | 6,000,000 | |||
Proceeds from long term debt | - | 61,700,000 | |||
Repayment of related party loan | - | (2,700,000 | ) | ||
Repayment of long term debt | (4,764,000 | ) | (44,212,000 | ) | |
Net cash (used in) / provided by financing activities | (5,477,553 | ) | 25,759,088 | ||
Net (decrease) / increase in cash, cash equivalents and restricted cash | (5,385,337 | ) | 17,999,568 | ||
Cash, cash equivalents and restricted cash at beginning of period | 9,129,442 | 4,606,318 | |||
Cash, cash equivalents and restricted cash at end of period | 3,744,105 | 22,605,886 |
Cash breakdown
Cash and cash equivalents | 249,742 | 17,015,316 | |||
Restricted cash, current | 744,363 | 3,640,570 | |||
Restricted cash, long term | 2,750,000 | 1,950,000 | |||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 3,744,105 | 22,605,886 |
Reconciliation of Adjusted EBITDA to Net income / (loss)
(All amounts expressed in
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
Net income / (loss) | 537,812 | 12,064,054 | (5,580,751 | ) | 15,146,733 | |||
Interest and other financing costs, net (incl. interest income and loss on debt extinguishment) | 615,828 | 555,747 | 1,859,999 | 3,314,164 | ||||
Vessel depreciation | 1,651,870 | 1,983,108 | 4,904,386 | 5,395,583 | ||||
Unrealized (gain) / loss on Forward Freight Agreement derivatives | (1,590 | ) | (1,584,369 | ) | 130,380 | 2,546,292 | ||
Loss / (gain) on interest rate swap derivatives | 16,559 | 1,115 | 527,735 | (133,730 | ) | |||
Adjusted EBITDA | 2,820,479 | 13,019,655 | 1,841,749 | 26,269,042 |
Adjusted EBITDA Reconciliation:
Reconciliation of Net income / (loss) to Adjusted net income / (loss)
(All amounts expressed in
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
Net income / (loss) | 537,812 | 12,064,054 | (5,580,751 | ) | 15,146,733 | |||
Unrealized (gain) / loss on derivatives | (14,648 | ) | (1,659,261 | ) | 602,361 | 2,189,391 | ||
Loss on debt extinguishment | - | - | - | 1,647,654 | ||||
Adjusted net income / (loss) | 523,164 | 10,404,793 | (4,978,390 | ) | 18,983,778 | |||
Preferred dividends | (407,665 | ) | (274,337 | ) | (1,155,677 | ) | (845,262 | ) |
Preferred deemed dividend | - | - | - | (120,000 | ) | |||
Adjusted net income / (loss) attributable to common shareholders | 115,499 | 10,130,456 | (6,134,067 | ) | 18,018,516 | |||
Adjusted earnings / (loss) per share, basic | 0.05 | 3.84 | (2.70 | ) | 7.42 | |||
Weighted average number of shares, basic | 2,279,730 | 2,634,822 | 2,271,542 | 2,427,810 | ||||
Adjusted earnings / (loss) per share, diluted | 0.05 | 3.79 | (2.70 | ) | 7.29 | |||
Weighted average number of shares, diluted | 2,279,730 | 2,675,224 | 2,271,542 | 2,470,726 |
Adjusted net income / (loss) and Adjusted earnings / (loss) per share Reconciliation:
About
The Company has a fleet of 9 vessels, including 5 Panamax drybulk carriers, 2 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers. EuroDry’s 9 drybulk carriers have a total cargo capacity of 668,631 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 | President Capital Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com |
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