EuroDry Ltd. (NASDAQ:EDRY) Q4 2018 Earnings Conference Call Transcript

Feb 19, 2019 • 11:00 am ET

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EuroDry Ltd. (NASDAQ:EDRY) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Thank you for standing by ladies and gentlemen, and welcome to the EuroDry Conference Call on the Fourth Quarter 2018 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participant lines are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operators Instructions)

I must advise the conference is being recorded today. And I'd now like to pass the floor to your first speaker, Mr. Pittas. Please go ahead, sir.

Executive
Aristides J. Pittas

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our CFO. The purpose of today's call is to discuss our financial results for the fourth quarter period ended December 31st, 2018 and our full year 2018 results.

In May, 2018, Euroseas contributed to EuroDry its drybulk 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. EuroDry was spun-off from Euroseas on May 30th, 2018. The results in this presentation refer to the drybulk fleet for the periods presented.

Please turn to slide three. Our income statement highlights are shown here. For the fourth quarter of 2018, we reported total net revenues of $7 million, adjusted EBITDA of $3.5 million and adjusted net income attributable to common share holders of $700,000. Basic and diluted earnings per share attributable to common shareholders for the fourth quarter of 2018 was $0.31 per share. Our CFO, Tasos Aslidis will go over our financial highlights in more detail later on in this presentation.

Please turn to slide four for our chartering operations and sale and purchase highlights. We recently announced the acquisition of the Star of Nippon, a Panamax size drybulk carriers of 75,000 deadweight built in 2004 in Japan for $10.1 million. The vessel was delivered to us on 30th November 2018 and remains Starlight. The ship was immediately chartered out with earliest redelivery in July and latest in October 2019 at $9,000 per day for the first 40 days and thereafter at a 100% of the BPI, four time charter route index.

Our Pantelis was fixed for a trip about 20 days at $11,000 per day on November 9th, thereafter it was fixed for a trip of about 50 days at $9,050 per day. And following that, fixed for a further trip of about 20 days at $5,500 per day. The Tasos was fixed for a trip about 30 days at $7,750 per day from December 13th, and then fixed for a trip about 60 days at $12,250 per day, plus a ballast bonus of $225,000, which should result in about $7,000 to $7,500 per day average time charter equivalent for the duration of the voyage.

During the fourth quarter of 2018, the drybulk market was influenced by the continued uncertainty caused by the trade tensions between the US