- 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.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Globe-News Wire
