EuroDry Ltd. Declares Previous Quarterly Reports

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  • Total net revenues of $7.0 million, Net income of $0.8 million; net income attributable to common shareholders of $0.6 million or $0.25 earnings per share basic and diluted.
  • Adjusted net income attributable to common shareholders1 for the period was $0.7 million or $0.31 per share basic and diluted with Adjusted EBITDA1 at $3.5 million.
  • An average of 6.3 vessels was owned and operated during the fourth quarter of 2018 earning an average time charter equivalent rate of $12,513 per day.
  • The Company declared its third dividend of $0.2 million on its Series B Preferred Shares; the dividend was paid-in-kind by issuing additional Series B Preferred Shares.

According to a press release in GlobeNewswire on February 19, EuroDry Ltd., an owner and operator of dry-bulk vessels and provider of seaborne transportation for dry bulk cargoes announced its results for the three and twelve month period ended December 31, 2018.

Contributions

Euroseas Ltd. has contributed to the Company its dry bulk fleet of six vessels, one Ultramax and two Kamsarmax vessels built between 2016 and 2018, and three Japanese-built Panamax vessels built between 2000 and 2004. The Company was spun-off from Euroseas Ltd. on May 30, 2018.

Company’s thoughts

Aristides Pittas, Chairman and CEO of EuroDry commented that during the fourth quarter of 2018, the dry bulk market and charter rates were influenced by the continued uncertainty of trade tensions between US and China and the subsequent trade slowdown.

Aristides Pittas added that the timely secured physical and FFA contracts to cover the majority of the vessels with fixed-rate contracts during 2019 insulating, to a significant extent from adverse market moves. He added that they believe that dry bulk markets could offer significant opportunities for sizable returns in the medium term.

Tasos Aslidis, Chief Financial Officer of EuroDry commented that the operating results of the fourth quarter of 2018 reflect the average level of charter rates our vessels enjoyed during the quarter which was higher by 11.4% than the average time charter equivalent rate from vessels earned in the fourth quarter of 2017.

Summary of Fourth Quarter 2018 Results

  • For the fourth quarter of 2018, the Company reported total net revenues of $7.0 million representing a 21.5% increase over total net revenues of $5.8 million during the fourth quarter of 2017.
  • The Company reported net income for the period of $0.8 million and net income attributable to common shareholders of $0.6 million, as compared to net income and net income attributable to common shareholders of $1.3 million for the same period of 2017.
  • Depreciation expenses for the fourth quarter of 2018 amounted to $1.5 million compared to $1.2 million for the same period of 2017. Increased general and administrative expenses reflected mainly the operation of the Company as a separate public company following the completion of the Spin-off.
Three

Months

Ended

December

31,

Three Months

Ended

December 31,

Twelve

Months Ended

December 31,

Twelve

Months Ended

December 31,

2017 2018 2017 2018
(unaudited) (unaudited)
Revenues
Voyage revenue 6,081,668 7,368,077 20,280,215 25,934,204
Commissions (325,161) (374,409) (1,122,196) (1,411,333)
Net revenues 5,756,507 6,993,668 19,158,019 24,522,871
Operating expenses
Voyage expenses, net 919,394 93,234 2,396,318 410,676
Vessel operating expenses 1,346,919 2,401,416 6,892,388 9,183,152
Drydocking expenses 24,494 20,889 127,509 1,465,079
Vessel depreciation 1,205,139 1,479,656 4,786,272 5,422,155
 Management fees 376,565 459,923 1,409,716 1,701,340
Other general and administrative expenses 223,600 523,560 917,160 2,346,502
Total Operating expenses (4,096,111) (4,978,678) (16,529,363) (20,528,904)
Operating income 1,660,396 2,014,990 2,628,656 3,993,967
Other income / (expenses)
Interest and finance cost (436,050) (1,081,051) (1,817,574) (2,913,141)
Gain / (Loss) on derivatives, net 51,453 (137,340) 49,167 13,786
Foreign exchange gain / (loss) 522 4,197 (10,548) 11,040
Interest income 3,333 14,083
Other expenses, net (384,075) (1,210,861) (1,778,955) (2,874,232)
Net income 1,276,321 804,129 849,701 1,119,735
Dividend Series B Preferred shares (244,031) (565,229)
Net income attributable to

common shareholders

1,276,321 560,098 849,701 554,506
Earnings per share, basic 0.57 0.25 0.38 0.25
Weighted average number of

shares, basic

2,222,744 2,240,794 2,213,505 2,232,821
Earnings per share, diluted 0.57 0.25 0.38 0.25
Weighted average number of

shares, diluted

2,222,744 2,250,946 2,213,505 2,232,821

TABLE 7: Unaudited Consolidated Condensed Statements of Income (All amounts expressed in U.S. Dollars – except the number of shares)

Adjusted EBITDA Reconciliation

EuroDry Ltd. considers Adjusted EBITDA to represent net income before interest, income taxes, depreciation and gain/loss on derivatives. Adjusted EBITDA does not represent and should not be considered as an alternative to net income / (loss), as determined by the United States generally accepted accounting principles, or GAAP.

The Company’s definition of Adjusted net income and Adjusted earnings per share may not be the same as that used by other companies in the shipping or other industries.

References

Adjusted 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.

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Source: Globe-News Wire

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