Euroseas Management Discusses Q4 2012 Results - Earnings Call Transcript
February 14, 2013 4:11 PM ET
Euroseas Ltd. (ESEA)
Q4 2012 Earnings Call
February 14, 2013 10:00 AM ET
Aristides Pittas – Chairman
Tasios Aslidis – CFO and Treasurer
Mike Webber – Wells Fargo
Thomas Reynolds – GRS Asset Management
Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the fourth quarter and year ended December 31, 2012 financial results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasios Aslidis, Chief Financial Officer of the company.
At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise you the conference is being recorded today, Thursday, February 14, 2013.
Please be reminded that the company announced their results this morning with a press release that has been publicly distributed. Before putting the floor to Mr. Pittas, I would like to remind everyone that in today’s presentation and conference call, Euroseas will be making forward-looking statements. These statements are within the meaning of the Federal Securities Laws. Matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.
I kindly draw your attention to slide number 2 of the webcast presentation, which has the full forward-looking statement and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it.
I would now like to pass the floor to Mr. Aristides Pittas, Chairman and Chief Executive Officer of Euroseas. Please go ahead, sir.
Good morning and thank you for joining Euroseas for our conference call today. Together with me is Tasios Aslidis, our CFO. The purpose of today’s call is to discuss the results for the fourth quarter and year ended December 31, 2012 financial results.
Let us turn to slide 3 for our fourth quarter and year ended December 31, 2012 financial results overview. The fourth quarter of 2012, we reported total net revenues of $12.4 million. Net loss for the period was $2 million or $0.04 loss per share basic and diluted.
The results for the fourth quarter included $0.4 million net unrealized gain on derivatives and the $0.4 million net realized loss on derivatives. Excluding the effect of the earnings for the fourth quarter ended December 31, 2012 of the unrealized gain and the unrealized loss on derivatives, the adjusted net loss for the period will have been unchanged $2 million or $0.04 loss per share basic and diluted.
Adjusted EBITDA for the fourth quarter of 2012 was $2.5 million. We declare the quarterly dividend of $0.015, i.e. $0.015 per share for the fourth quarter of 2012 payable on or about March 9, 2013 towards shareholders of record on March 2, 2013. This is the thirtieth consecutive quarterly dividend declared since the company accessed the capital markets in August 2005.
For the full year of 2012, we reported total net revenues of $52.5 million. Net loss for the period was $13.2 million or $0.34 loss per share basic and diluted. The result for the 12 months of 2012 include a $1.1 million net unrealized gain on derivatives and $1.7 million net realized loss on derivatives and $8.6 million loss on sale of a vessel. Excluding the effect of the losses for 2012 of the net unrealized gain and derivatives on trading securities, the realized loss on derivatives and the loss on the sale of the vessel, the adjusted net loss for the year ended December 31, 2012 would have been $4 million or $0.10 loss per share basic and diluted.
Adjusted EBITDA for the year was $14.9 million. We declared four quarterly dividends for a total of $0.09 per share during the 12 months of 2012.
Please turn to slide 4. For the last seven years, we have been able to declare a dividend which represents a yield of between 5% to 12%. Despite the continued challenges in both the drybulk and container sectors in which we operate, our preference is to continue to reward our shareholders with a quarterly dividend but without at the same time compromising the growth profits of our company.
In this context, our board declared the quarterly dividend of $0.015 per share for Q4 2012 same as the previous quarter. This represents an annual yield of about 6% from the basis of our stock price on February 11, 2013.
Please turn to slide 5 to review our company developments. In regards of fleet developments, all 15 of our vessels are currently employed. Our strategy of chartering our vessels on short period employment during this market downturn will allow us to capture the upside in the freight markets as it occurs and thus positively impact our revenues.
In 2012, the containership market remained depressed for the size of vessels we operate and stayed very close to the low levels last seen in the beginning of 2010. On the other hand, the drybulk market, although also depressed, did not affect our revenues during fourth quarter 2012 as our vessels were all chartered in period employment.
This will change in 2013 as evenly over time these 10 charters will be concluded. We decided to put the first drybulk vessel that concluded its charter just a few days ago, the Eleni P into the Baumarine Panamax bulker pool where we expect her to be earning spot market rates.
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