EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner
and operator of drybulk vessels and provider of seaborne
transportation for drybulk cargoes, announced today its results for
the three and nine-month periods ended September 30, 2023.
Third Quarter 2023
Highlights:
- Total net revenues for the quarter
of $10.0 million.
- Net loss of $0.5 million or $0.19
loss per share basic and diluted.
- Adjusted net loss1 for the quarter
of $0.7 million, or, $0.24 per share basic and diluted.
- Adjusted EBITDA1 was $3.1
million.
- An average of 10.0 vessels were
owned and operated during the third quarter of 2023 earning an
average time charter equivalent rate of $12,126 per day.
- As of November 8, 2023 we had
repurchased 268,490 shares of our common stock in the open market
for about $4.0 million (approximately 9.7% of our currently
outstanding shares), under our share repurchase plan initiated in
August 2022.
- On September 12, 2023 we announced
our agreement to acquire three Ultramax bulkers, M/V Christos K
(ex-Giants Causeway), a 63,197dwt drybulk vessel built in 2015, M/V
Maria (ex-Sadlers Wells), a 63,153 dwt drybulk vessel also built in
2015, and M/V Yannis Pittas (ex-Galileo), a 63,177 dwt dry bulk
vessel built in 2014 for a total price of $65 million.
_____________________________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 2023
Highlights:
- Total net revenues of $31.7
million.
- Net loss of $3.3 million, or $1.17
loss per share basic and diluted.
- Adjusted net loss1 for the period
was $1.6 million or $0.57 loss per share basic and diluted, before
unrealized loss on derivatives.
- Adjusted EBITDA1 was $8.0
million.
- An average of 10.0 vessels were
owned and operated during the first nine months of 2023 earning an
average time charter equivalent rate of $11,644 per day.
Recent developments
- On October 10, 2023 we took
delivery of M/V Yannis Pittas. The consideration was partly paid by
cash at-hand and partly financed with a sustainability-linked loan
for $10.5 million with Eurobank S.A.
- On October 25, 2023 we took
delivery of M/V Christos K. The consideration was partly paid by
cash at-hand and partly financed with a sustainability-linked loan
for $11.0 million with Eurobank S.A.
- On October 26, 2023, we announced
that we formed a joint venture with a number of investors
represented by NRP Project Finance AS (“NRP Investors”) regarding
the ownership of M/V Christos K and M/V Maria, whereby NRP
Investors will acquire a 39% ownership stake in each of the
vessels.
- On November 6, 2023, we took
delivery of M/V Maria. The consideration was partly paid by cash
at-hand and partly financed with a sustainability-linked loan for
$11.0 million with Eurobank S.A.
Aristides Pittas, Chairman and CEO of
EuroDry commented: “During the third
quarter of 2023, average time charter rates for the sizes of
vessels and related Baltic indices staged a come-back increasing by
more than 20% and 75%, respectively, by the end of the quarter.
However, since the end of the third quarter, rates and index values
slid down by 5% to 15% depending on rate type and vessel size.
These developments partly reflect the seasonal market strength
during the September and October months as well as certain
constraints imposed by climate-related reasons like the capacity
restriction of the Panama Canal due to low fresh water levels.
“Looking forward, we see that world economic
growth is affected by the effort of the main central banks to
contain inflation. At the same time, the increasing geo-political
tensions (like the Ukraine-Russia war and the Israeli-Hamas
conflict) introduce additional uncertainty in the world markets,
affecting seaborne trade. Against this rather uncertain demand
picture, the likely drybulk fleet developments over the next 2-3
years provide a reason for optimism as the continuing historically
low orderbook as percentage of the fleet and the effect of the
implementation of the greenhouse gas emission regulations on the
ability of certain vessels to continue trading are expected to keep
the fleet supply growth at low levels. Assuming that global GDP
growth remains positive as expected by most analysts and a global
recession is avoided, we would expect that market rates and vessel
prices will be supported.
“We are very pleased to have taken the
opportunity to take advantage of the softening of vessel prices we
witnessed during the summer to increase our fleet with three eco
Ultramax vessels. We are also very pleased to have achieved this
growth in partnership with certain shipping savvy Norwegian
investors who participated in the investment with a 39% interest in
of two of them. This way of funding our fleet growth is
non-dilutive to our shareholders and establishes us as an
investment partner amongst other private investors. It allows us to
capitalize on accretive investment opportunities in the market and
grow our fleet more than we could otherwise. We believe that we
serve our shareholders best via a mix of acquisitions like the
above and, also, by continuing to repurchase our shares as they
trade significantly below our net asset value level.”
Tasos Aslidis, Chief Financial Officer
of EuroDry commented: “Comparing our results for the third
quarter of 2023 with the same period of 2022, our net revenues
decreased by about $5.8 million, due to the lower time charter
equivalent rates our vessels earned as compared to the third
quarter of 2022. The time charter equivalent rates for the period
were lower by 41% on average compared to the time charter
equivalent rates our vessels earned in the third quarter of 2022.
Operating expenses, including management fees, increased from
$5,893 per vessel per day in the third quarter of 2022 to $6,003 in
the third quarter of 2023. The increase is primarily attributable
to inflationary increases in 2023 compared to the corresponding
period in 2022. General and administrative expenses averaged $677
per vessel per day during the third quarter of 2023 as compared to
$700 per vessel per day for the same quarter of last year and $813
per vessel per day for the first nine months of 2023 as compared to
$750 per vessel per day for the same period of 2022. The increase
in the nine months period is due partly to inflation adjustments
and partly to the lower number of vessels we operated during the
nine months of 2023 as compared to 2022.
Adjusted EBITDA during the third quarter of 2023
was $3.1 million compared to $9.5 million achieved for the third
quarter of last year. As of September 30, 2023, our outstanding
debt (excluding the unamortized loan fees) was $75.0 million while
unrestricted and restricted cash was $34.0 million. As of the same
date, our scheduled debt repayments including balloon payments over
the next 12 months amounted to about $15.9 million (excluding the
unamortized loan fees) and all our loan covenants are
satisfied.”
Third Quarter 2023 Results:For
the third quarter of 2023, the Company reported total net revenues
of $10.0 million representing a 36.7% decrease over total net
revenues of $15.8 million during the third quarter of 2022, which
was primarily the result of the lower time charter rates our
vessels earned in the third quarter of 2023 compared to the
corresponding period of 2022. The Company reported net loss for the
period of $0.5 million, as compared to a net income of $6.2 million
for the same period of 2022.
On average, 10.0 vessels were owned and operated
during the third quarter of 2023 earning an average time charter
equivalent rate of $12,126 per day compared to 11.0 vessels in the
same period of 2022 earning on average $20,637 per day.
For the third quarter of 2023, a gain on bunkers
resulted in positive voyage expenses of $0.1 million, as compared
to a gain on bunkers for the same period of 2022 of $2.0 million.
Vessel operating expenses were $4.7 million for the third quarter
of 2023 as compared to $5.2 million for the same period of 2022.
The decrease is attributable to the decreased number of vessels
operating in the third quarter of 2023 compared to the
corresponding period in 2022. Depreciation expense for the third
quarter of 2023 amounted to $2.6 million, compared to $2.9 million
for the same period of 2022. This decrease is again due to the
lower number of vessels operating in the third quarter of 2023 as
compared to the same period of 2022. General and administrative
expenses decreased to $0.6 million in the third quarter of 2023, as
compared to $0.7 million in the third quarter of 2022. This
decrease is mainly attributable to the decreased legal costs of the
Company in the third quarter of 2023 compared to the same period of
2022. During the third quarter of 2023, one of our vessels
completed her special survey with drydocking for a total cost of
$0.8 million. During the third quarter of 2022, two of our vessels
completed their special survey with drydocking and one of our
vessels commenced drydocking within the quarter in order to pass
her special survey, which was completed in the fourth quarter of
2022, for a total cost of $2.7 million.
Interest and other financing costs for the third
quarter of 2023 amounted to $1.6 million compared to $1.0 million
for the same period of 2022. Interest expense during the third
quarter of 2023 was higher mainly due to the increased benchmark
rates of our loans during the period as compared to the same period
of last year. For the three months ended September 30, 2023, the
Company recognized an unrealized gain of $0.14 million and a
realized gain of $0.05 million on an interest rate swap contract.
For the three months ended September 30, 2022, the Company
recognized an unrealized gain of $1.0 million and a marginal
realized loss on five interest rate swap contracts and a gain of
$0.6 million on forward freight agreement (“FFA”) contracts entered
into during the second quarter of 2022 and settled during the third
quarter of 2022, comprising a realized gain of $1.1 million and a
change in fair value of FFA contracts of $0.5 million. Interest
income for the third quarter of 2023 amounted to $0.3 million
compared to marginal interest income for the same period of 2022.
The increase of interest income is attributable to both higher
interest rates earned and higher cash balances maintained during
the third quarter of 2023 compared to the corresponding period in
2022.
Adjusted EBITDA for the third quarter of 2023
was $3.1 million compared to $9.5 million achieved during the third
quarter of 2022.
Basic and diluted loss per share for the third
quarter of 2023 was $0.19 basic and diluted calculated on 2,758,013
basic and diluted weighted average number of shares outstanding,
compared to earnings per share of $2.11 basic and $2.10 diluted,
calculated on 2,925,799 basic and 2,930,909 diluted weighted
average number of shares outstanding for the third quarter of
2022.
Excluding the effect on the loss for the quarter
of the unrealized gain on derivatives, the adjusted net loss for
the quarter ended September 30, 2023 would have been $0.24 per
share basic and diluted, compared to adjusted earnings of $1.94 and
$1.93 per share basic and diluted, respectively, for the quarter
ended September 30, 2022. Usually, security analysts do not include
the above item in their published estimates of earnings per
share.
First Nine Months 2023 Results:
For the first nine months of 2023, the Company
reported total net revenues of $31.7 million representing a 42.4%
decrease over total net revenues of $55.1 million during the first
nine months of 2022, which was mainly the result of the decreased
number of vessels operated and the significantly lower time charter
rates our vessels earned during the nine-month period of 2023
compared to the same period of 2022. The Company reported net loss
for the period of $3.3 million, as compared to a net income of
$27.3 million, for the nine-month period of 2022.
On average, 10.0 vessels were owned and operated
during the first nine months of 2023 earning an average time
charter equivalent rate of $11,644 per day compared to 10.5 vessels
in the same period of 2022 earning on average $22,876 per day.
For the nine months of 2023, voyage expenses,
net, were $3.4 million and mainly relate to expenses incurred by
one of our vessels while employed under a voyage charter and
expenses during the detention of one of our vessels in Corpus
Christi. For the nine months of 2022 a gain on bunkers resulted in
positive voyage expenses of $2.9 million. Vessel operating expenses
were $14.8 million for the nine months of 2023 as compared to $14.4
million for the same period of 2022. The increase is primarily
attributable to inflationary increases in 2023 compared to the
corresponding period in 2022. Related party management fees for the
first nine months of 2023 were slightly increased to $2.3 million
from $2.2 million for the same period of 2022 as a result of an
adjustment for inflation in the daily vessel management fee,
effective from January 1, 2023, increasing the daily vessel
management fee from 720 Euros to 775 Euros, partly offset by the
favorable movement of the euro/dollar exchange rate and the
decreased number of vessels owned and operated during the period.
Depreciation expense for the first nine months of 2023 was $7.7
million compared to $8.2 million during the same period of 2022,
mainly due to the lower number of vessels operating in the recent
period. General and administrative expenses increased to $2.2
million during the first nine months of 2023 as compared to $2.1
million in the same period of last year. This increase is mainly
attributable to the increased cost of our stock incentive plan. In
the first nine months of 2023, three of our vessels completed their
special survey with drydocking for a total cost of $2.9 million.
During the same period of 2022, four vessels underwent special
survey, one vessel passed her intermediate survey in water (in lieu
of drydock) and one of our vessels commenced drydocking within the
quarter in order to pass her special survey, which was completed in
the fourth quarter of 2022. The total drydocking cost for that
period was $4.4 million. Finally, during the nine months period of
2023, we recorded a provision of $0.5 million for anticipated costs
related to the detention of one of our vessels in Corpus Christi
presented as other operating loss.
Interest and other financing costs for the first
nine months of 2023 amounted to $4.4 million compared to $2.4
million for the same period of 2022. Interest expense during for
the period was higher mainly due to the increased benchmark rates
of our loans during the period as compared to the same period of
last year. For the nine months ended September 30, 2023, the
Company recognized a $1.6 million unrealized loss and a $1.9
million realized gain on four interest rate swaps, three of which
were terminated early in the first quarter of 2023, as well as a
$2.5 million gain on FFA contracts. For the nine months ended
September 30, 2022, the Company recognized a $2.2 million
unrealized gain and a $0.2 million realized loss on five interest
rate swaps and a $1.1 million realized gain on FFA contracts
entered into during the second quarter of 2022 and settled during
the third quarter of 2022. Interest income for the first nine
months of 2023 amounted to $0.7 million compared to marginal
interest income for the same period of 2022. The increase of
interest income is attributable to both higher interest rates
earned and higher cash balances maintained during the first nine
months of 2023 compared to the corresponding period in 2022.
Adjusted EBITDA for the first nine months of
2023 was $8.0 million compared to $35.9 million achieved during the
first nine months of 2022.
Basic and diluted loss per share for the first
nine months of 2023 was $1.17, calculated on 2,773,916 basic and
diluted weighted average number of shares outstanding, compared to
earnings per share of $9.43 basic and $9.34 diluted, calculated on
2,890,771 basic and 2,918,800 diluted weighted average number of
shares outstanding for the same period of 2022.
Excluding the effect of the change in the fair
value of derivatives on the loss for the first nine months of the
year, the adjusted net loss for the nine-month period ended
September 30, 2023 would have been $0.57 per share basic and
diluted, compared to adjusted earnings per share of $8.69 basic and
$8.60 diluted for the same period in 2022. As previously mentioned,
usually, security analysts do not include the above item in their
published estimates of earnings per share. Fleet
Profile:
The EuroDry Ltd. fleet profile is as follows:
|
Name |
Type |
Dwt |
Year Built |
Employment(*) |
TCE Rate ($/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 Dec-23 |
$27,000 |
|
CHRISTOS K*** |
Ultramax |
63,197 |
2015 |
TC until Nov-23 |
$9,600 |
|
YANNIS PITTAS |
Ultramax |
63,177 |
2014 |
TC until Dec-23 |
$12,500 |
|
MARIA*** |
Ultramax |
63,153 |
2015 |
TC until Nov-23 |
$10,500 |
|
GOOD HEART |
Ultramax |
62,996 |
2014 |
TC until Nov-23 |
$11,900 |
|
MOLYVOS LUCK |
Supramax |
57,924 |
2014 |
TC until Nov-23 |
$14,000 |
|
EIRINI P |
Panamax |
76,466 |
2004 |
TC until Nov-23 |
$11,000 |
|
SANTA CRUZ |
Panamax |
76,440 |
2005 |
TC until Dec-23 |
$13,000 |
|
STARLIGHT |
Panamax |
75,845 |
2004 |
TC until Nov-23 |
$15,250 |
|
TASOS |
Panamax |
75,100 |
2000 |
TC until Nov-23 |
$8,000 |
|
BLESSED LUCK |
Panamax |
76,704 |
2004 |
TC until Jan-24 |
$15,800 |
|
Total Dry Bulk Vessels |
13 |
918,502 |
|
|
|
Note: (*) Represents the earliest redelivery date
(**) The average Baltic Kamsarmax P5TC Index is an index based
on five Panamax time charter routes
(***) Vessel is 61% owned by EuroDry Ltd.
Summary Fleet Data:
|
|
3 months, ended September 30,
2022 |
|
3 months, ended September 30,
2023 |
|
9 months, ended September 30,
2022 |
|
9 months, ended September 30,
2023 |
|
|
FLEET DATA |
|
|
|
|
|
Average number of vessels (1) |
11.0 |
|
10.0 |
|
10.5 |
|
10.0 |
|
|
Calendar days for fleet (2) |
1,012.0 |
|
920.0 |
|
2,853.0 |
|
2,730.0 |
|
|
Scheduled off-hire days incl. laid-up (3) |
92.1 |
|
23.9 |
|
141.8 |
|
69.7 |
|
|
Available days for fleet (4) = (2) - (3) |
919.9 |
|
896.1 |
|
2,711.2 |
|
2,660.3 |
|
|
Commercial off-hire days (5) |
0.0 |
|
5.4 |
|
6.1 |
|
22.8 |
|
|
Operational off-hire days (6) |
10.3 |
|
4.5 |
|
23.0 |
|
50.5 |
|
|
Voyage days for fleet (7) = (4) - (5) - (6) |
909.6 |
|
886.2 |
|
2,682.1 |
|
2,587.0 |
|
|
Fleet utilization (8) = (7) / (4) |
98.9% |
|
98.9% |
|
98.9% |
|
97.2% |
|
|
Fleet utilization, commercial (9) = ((4) - (5)) / (4) |
100.0% |
|
99.4% |
|
99.8% |
|
99.1% |
|
|
Fleet utilization, operational (10) = ((4) - (6)) / (4) |
98.9% |
|
99.5% |
|
99.2% |
|
98.1% |
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
Time charter equivalent rate (11) |
20,637 |
|
12,126 |
|
22,876 |
|
11,644 |
|
|
Vessel operating expenses excl. drydocking expenses (12) |
5,893 |
|
6,003 |
|
5,837 |
|
6,282 |
|
|
General and administrative expenses (13) |
700 |
|
677 |
|
750 |
|
813 |
|
|
Total vessel operating expenses (14) |
6,593 |
|
6,680 |
|
6,587 |
|
7,095 |
|
|
Drydocking expenses (15) |
2,696 |
|
890 |
|
1,547 |
|
1,077 |
|
| |
|
|
|
|
|
|
|
|
(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 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, 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, November 8, 2023 at 11:00 a.m. Eastern
Time, the Company's management will host a conference call and
webcast to discuss the results.
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 ID13742553. 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 audio
webcast of the conference call, via the internet through the
EuroDry website (www.eurodry.gr). Participants to the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast. A slide presentation on the Third Quarter
2023 results in PDF format will also be available 10 minutes prior
to the conference call and webcast accessible on the company's
website (www.eurodry.gr) on the webcast page. Participants to the
webcast can download the PDF presentation.
| |
| EuroDry
Ltd.Unaudited Consolidated Condensed Statements of
Operations(All amounts expressed in U.S. Dollars –
except number of shares) |
| |
|
|
|
|
|
|
Three Months EndedSeptember
30, |
Three Months EndedSeptember
30, |
Nine Months EndedSeptember
30, |
Nine Months EndedSeptember
30, |
|
|
2022 |
2023 |
2022 |
2023 |
|
|
(unaudited) |
(unaudited) |
|
Revenues |
|
|
|
|
|
Time charter revenue |
16,799,698 |
|
10,665,929 |
|
58,488,275 |
|
30,955,102 |
|
|
Voyage charter revenue |
- |
|
- |
|
- |
|
2,609,775 |
|
|
Commissions |
(985,625 |
) |
(657,175 |
) |
(3,421,825 |
) |
(1,871,737 |
) |
|
Net revenues |
15,814,073 |
|
10,008,754 |
|
55,066,450 |
|
31,693,140 |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Voyage expenses, net |
(1,971,407 |
) |
(80,185 |
) |
(2,866,697 |
) |
3,442,100 |
|
|
Vessel operating expenses |
5,209,256 |
|
4,734,265 |
|
14,434,414 |
|
14,820,551 |
|
|
Drydocking expenses |
2,728,266 |
|
819,246 |
|
4,414,251 |
|
2,939,081 |
|
|
Vessel depreciation |
2,857,258 |
|
2,619,171 |
|
8,182,892 |
|
7,730,460 |
|
|
Related party management fees |
754,117 |
|
788,110 |
|
2,218,181 |
|
2,329,465 |
|
|
General and administrative expenses |
707,993 |
|
622,767 |
|
2,140,229 |
|
2,219,882 |
|
|
Other operating loss |
- |
|
- |
|
- |
|
500,000 |
|
|
Total Operating expenses |
(10,285,483 |
) |
(9,503,374 |
) |
(28,523,270 |
) |
(33,981,539 |
) |
|
|
|
|
|
|
|
Operating income / (loss) |
5,528,590 |
|
505,380 |
|
26,543,180 |
|
(2,288,399 |
) |
|
|
|
|
|
|
|
Other income / (expenses) |
|
|
|
|
|
Interest and other financing costs |
(965,917 |
) |
(1,589,023 |
) |
(2,371,540 |
) |
(4,448,230 |
) |
|
Gain on derivatives, net |
1,573,803 |
|
188,252 |
|
3,049,602 |
|
2,753,502 |
|
|
Foreign exchange gain / (loss) |
24,050 |
|
1,248 |
|
51,427 |
|
(7,065 |
) |
|
Interest income |
1,231 |
|
362,106 |
|
1,616 |
|
733,582 |
|
|
Other income / (expenses), net |
633,167 |
|
(1,037,417 |
) |
731,105 |
|
(968,211 |
) |
|
Net income / (loss) |
6,161,757 |
|
(532,037 |
) |
27,274,285 |
|
(3,256,610 |
) |
|
Earnings / (loss) per share, basic |
2.11 |
|
(0.19 |
) |
9.43 |
|
(1.17 |
) |
|
Weighted average number of shares, basic |
2,925,799 |
|
2,758,013 |
|
2,890,771 |
|
2,773,916 |
|
|
Earnings / (loss) per share, diluted |
2.10 |
|
(0.19 |
) |
9.34 |
|
(1.17 |
) |
|
Weighted average number of shares, diluted |
2,930,909 |
|
2,758,013 |
|
2,918,800 |
|
2,773,916 |
|
| |
|
|
|
|
|
|
|
|
| |
|
EuroDry Ltd.Unaudited Consolidated
Condensed Balance Sheets(All amounts expressed in
U.S. Dollars – except number of shares) |
| |
|
|
|
|
December 31,2022 |
September 30,2023 |
|
|
|
|
|
|
| ASSETS |
|
| Current
Assets: |
|
|
|
|
|
Cash and cash equivalents |
34,042,150 |
|
31,203,003 |
|
|
Trade accounts receivable, net |
7,147,833 |
|
3,743,514 |
|
|
Other receivables |
346,066 |
|
2,409,910 |
|
|
Inventories |
1,057,652 |
|
1,015,252 |
|
|
Restricted cash |
1,195,863 |
|
637,327 |
|
|
Derivatives |
1,437,398 |
|
204,996 |
|
|
Due from related companies |
2,416,180 |
|
92,899 |
|
|
Prepaid expenses |
249,024 |
|
274,134 |
|
| Total current
assets |
47,892,166 |
|
39,581,035 |
|
|
Fixed assets: |
|
|
|
|
|
Vessels, net |
149,022,023 |
|
141,408,765 |
|
|
Advances for vessel acquisitions |
- |
|
6,560,096 |
|
| Long-term
assets: |
|
|
|
|
|
Derivatives |
705,970 |
|
273,963 |
|
|
Restricted cash |
1,885,000 |
|
2,185,000 |
|
|
Total assets |
199,505,159 |
|
190,008,859 |
|
|
|
|
|
|
|
| LIABILITIES, AND
SHAREHOLDERS' EQUITY |
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
Long term bank loans, current portion |
22,858,087 |
|
15,483,637 |
|
|
Trade accounts payable |
2,989,431 |
|
2,608,959 |
|
|
Accrued expenses |
1,004,719 |
|
2,706,808 |
|
|
Deferred revenue |
351,636 |
|
964,365 |
|
| Total current
liabilities |
27,203,873 |
|
21,763,769 |
|
| |
|
|
|
|
| Long-term
liabilities: |
|
|
|
|
|
Long term bank loans, net of current portion |
58,360,169 |
|
58,860,372 |
|
| Total
liabilities |
85,564,042 |
|
80,624,141 |
|
| |
|
|
|
|
| Shareholders'
equity: |
|
|
|
|
|
Common stock (par value $0.01, 200,000,000 shares authorized,
2,902,620 and 2,789,441 issued and outstanding, respectively) |
29,026 |
|
27,894 |
|
|
Additional paid-in capital |
69,438,938 |
|
68,140,281 |
|
|
Retained earnings |
44,473,153 |
|
41,216,543 |
|
|
Total shareholders' equity |
113,941,117 |
|
109,384,718 |
|
|
Total liabilities and shareholders' equity |
199,505,159 |
|
190,008,859 |
|
| |
|
|
|
|
| |
|
EuroDry Ltd.Unaudited Consolidated
Condensed Statements of Cash Flows(All amounts
expressed in U.S. Dollars) |
| |
|
|
|
|
Nine Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
2023 |
|
| |
|
|
| Cash flows from operating
activities: |
|
| Net income / (loss) |
27,274,285 |
|
(3,256,610 |
) |
| Adjustments to reconcile net
income / (loss) to net cash provided by operating activities: |
|
|
| Vessel depreciation |
8,182,892 |
|
7,730,460 |
|
| Amortization of deferred
charges |
142,705 |
|
146,754 |
|
| Share-based compensation |
551,096 |
|
619,624 |
|
| Unrealized (gain) / loss on
derivatives |
(2,164,525 |
) |
1,664,409 |
|
| Bad debt expense |
- |
|
134,294 |
|
|
Changes in operating assets and liabilities |
(3,022,066 |
) |
5,321,305 |
|
|
Net cash provided by operating activities |
30,964,387 |
|
12,360,236 |
|
|
|
|
|
| Cash flows from investing
activities: |
|
|
| Cash paid for vessel
acquisitions |
(36,968,389 |
) |
(6,535,952 |
) |
| Cash paid for vessels capitalized
expenses |
(792,703 |
) |
(103,609 |
) |
| Cash paid for vessel sale
expenses |
- |
|
(15,274 |
) |
|
Net cash used in investing activities |
(37,761,092 |
) |
(6,654,835 |
) |
|
|
|
|
| Cash flows from financing
activities: |
|
|
| Proceeds from issuance of common
stock, net of commissions paid |
2,685,602 |
|
- |
|
| Cash paid for share
repurchase |
(1,469,522 |
) |
(1,782,084 |
) |
| Offering expenses paid |
(12,427 |
) |
- |
|
| Loan arrangement fees paid |
(150,000 |
) |
(126,000 |
) |
| Proceeds from long term bank
loans |
20,000,000 |
|
14,000,000 |
|
| Repayment of long term bank
loans |
(11,355,000 |
) |
(20,895,000 |
) |
|
Net cash provided by / (used in) financing
activities |
9,698,653 |
|
(8,803,084 |
) |
|
|
|
|
| Net increase / (decrease) in
cash, cash equivalents and restricted cash |
2,901,948 |
|
(3,097,683 |
) |
|
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 |
32,429,314 |
|
34,025,330 |
|
Cash breakdown
|
Cash and cash equivalents |
29,546,558 |
|
31,203,003 |
|
| Restricted cash, current |
997,756 |
|
637,327 |
|
|
Restricted cash, long term |
1,885,000 |
|
2,185,000 |
|
|
Total cash, cash equivalents and restricted cash shown in
the statement of cash flows |
32,429,314 |
|
34,025,330 |
|
| |
|
|
|
|
| |
| EuroDry
Ltd.Reconciliation of Adjusted EBITDA to Net
income / (loss)(All amounts expressed in U.S.
Dollars) |
| |
|
|
|
|
|
|
Three Months EndedSeptember 30,
2022 |
Three Months EndedSeptember 30,
2023 |
Nine Months EndedSeptember 30,
2022 |
Nine Months EndedSeptember 30,
2023 |
|
Net income / (loss) |
6,161,757 |
|
(532,037 |
) |
27,274,285 |
|
(3,256,610 |
) |
|
Interest and other financing costs, net (incl. interest
income) |
964,686 |
|
1,226,917 |
|
2,369,924 |
|
3,714,648 |
|
|
Vessel depreciation |
2,857,258 |
|
2,619,171 |
|
8,182,892 |
|
7,730,460 |
|
|
Unrealized (gain) / loss on Forward Freight Agreement
derivatives |
482,670 |
|
- |
|
- |
|
40,830 |
|
|
Gain on interest rate swap derivatives |
(951,633 |
) |
(188,252 |
) |
(1,944,762 |
) |
(265,172 |
) |
|
Adjusted EBITDA |
9,514,738 |
|
3,125,799 |
|
35,882,339 |
|
7,964,156 |
|
| |
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation:EuroDry Ltd. considers Adjusted EBITDA to
represent net income / (loss) before interest and other financing
costs, income taxes, depreciation, unrealized (gain)/ loss on
Forward Freight Agreement derivatives (“FFAs”) and (gain) / loss on
interest rate swap derivatives. Adjusted EBITDA does not represent
and should not be considered as an alternative to net income /
(loss), as determined by United States generally accepted
accounting principles, or GAAP. Adjusted EBITDA is included herein
because it is a basis upon which the Company assesses its financial
performance because the Company believes that this non-GAAP
financial measure assists our management and investors by
increasing the comparability of our performance from period to
period by excluding the potentially disparate effects between
periods of, financial costs, unrealized (gain) / loss on FFAs, gain
on interest rate swap derivatives, and depreciation. The Company's
definition of Adjusted EBITDA may not be the same as that used by
other companies in the shipping or other industries.
| |
| EuroDry
Ltd.Reconciliation of Net income to Adjusted net
income(All amounts expressed in U.S. Dollars –
except share data and number of shares) |
| |
|
|
|
|
|
|
Three Months EndedSeptember 30,
2022 |
Three Months EndedSeptember 30,
2023 |
Nine Months EndedSeptember 30,
2022 |
Nine Months EndedSeptember 30,
2023 |
|
Net income / (loss) |
6,161,757 |
|
(532,037 |
) |
27,274,285 |
|
(3,256,610 |
) |
|
Unrealized (gain) / loss on derivatives |
(495,377 |
) |
(142,867 |
) |
(2,164,525 |
) |
1,664,409 |
|
|
Adjusted net income / (loss) |
5,666,380 |
|
(674,904 |
) |
25,109,760 |
|
(1,592,201 |
) |
|
Adjusted earnings / (loss) per share, basic |
1.94 |
|
(0.24 |
) |
8.69 |
|
(0.57 |
) |
|
Weighted average number of shares, basic |
2,925,799 |
|
2,758,013 |
|
2,890,771 |
|
2,773,916 |
|
|
Adjusted earnings / (loss) per share, diluted |
1.93 |
|
(0.24 |
) |
8.60 |
|
(0.57 |
) |
|
Weighted average number of shares, diluted |
2,930,909 |
|
2,758,013 |
|
2,918,800 |
|
2,773,916 |
|
| |
|
|
|
|
|
|
|
|
Adjusted net income / (loss) and Adjusted earnings /
(loss) per share Reconciliation:
EuroDry Ltd. considers Adjusted net income /
(loss) to represent net income / (loss) before unrealized
(gain)/loss on derivatives, which includes FFAs and interest rate
swaps. Adjusted net income / (loss) and Adjusted earnings / (loss)
per share are included herein because we believe they assist our
management and investors by increasing the comparability of the
Company's fundamental performance from period to period by
excluding the potentially disparate effects between periods of
unrealized (gain)/loss on derivatives, which may significantly
affect results of operations between periods. Adjusted net income /
(loss) and Adjusted earnings / (loss) per share do not represent
and should not be considered as an alternative to net income /
(loss) or earnings / (loss) per share, as determined by GAAP. The
Company's definition of Adjusted net income / (loss) and Adjusted
earnings / (loss) per share may not be the same as that used by
other companies in the shipping or other industries. Adjusted net
income / (loss) and Adjusted earnings / (loss) per share are not
adjusted for all non-cash income and expense items that are
reflected in our statement of cash flows.
About EuroDry Ltd.EuroDry Ltd.
was formed on January 8, 2018 under the laws of the Republic of the
Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd
into a separate listed public company. EuroDry was spun-off from
Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital
Market under the ticker EDRY.
EuroDry operates in the dry cargo, drybulk
shipping market. EuroDry's operations are managed by Eurobulk Ltd.,
an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship
management company and Eurobulk (Far East) Ltd. Inc., which are
responsible for the day-to-day commercial and technical management
and operations of the vessels. EuroDry employs its vessels on spot
and period charters and under pool agreements.
The Company has a fleet of 13 vessels, including
5 Panamax drybulk carriers, 5 Ultramax drybulk carriers, 2
Kamsarmax drybulk carriers and 1 Supramax drybulk carrier.
EuroDry’s 13 drybulk carriers have a total cargo capacity of
918,502 dwt.
Forward Looking StatementThis
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 the
United States; and other factors listed from time to time in the
Company's filings with the Securities and Exchange Commission. The
Company expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Visit our website www.eurodry.gr
|
Company Contact |
Investor Relations / Financial Media |
| Tasos AslidisChief Financial
OfficerEuroDry Ltd.11 Canterbury Lane,Watchung, NJ07069Tel. (908)
301-9091E-mail: aha@eurodry.gr |
Nicolas BornozisMarkella
KaraCapital Link, Inc.230 Park Avenue, Suite 1540New York,
NY10169Tel. (212) 661-7566E-mail: eurodry@capitallink.com |
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