Euroseas Ltd. (NASDAQ:ESEA) Q3 2019 Earnings Conference Call - Final Transcript

Nov 25, 2019 • 10:30 am ET

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Euroseas Ltd. (NASDAQ:ESEA) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Third Quarter 2019 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the Company. [Operator Instructions]

I must advise you that the conference is being recorded, today, and please be reminded that the company announced their results with a press release that has been publicly distributed.

Before passing 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 2 of the webcast presentation, which is 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. 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 Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three-month period ended September 30, 2019.

As a reminder, I would like to mention that on May 30, 2018 the company spun off its drybulk fleet into EuroDry, a separate publicly listed company also listed on the NASDAQ Capital Market. Shareholders of Euroseas received one EuroDry share for every five shares of Euroseas they held. As a result of the spin-off, Euroseas has become a pure containership company and the only publicly listed company concentrating on the feeder and intermediate containership sector. The results below refer to Euroseas Ltd. continuing operations, excluding the contribution of vessels spun off into EuroDry Ltd. in May 2018. The historical comparative periods have been adjusted accordingly.

Now please turn to Slide 3 to see our income statement highlights. For the third quarter of 2019, total net revenues were $10.3 million. Net loss was $0.2 million. Adjusted net loss attributable to common shareholders was $0.5 million, or $0.02 loss per share, basic and diluted, after a $0.2 million dividend on Series B Preferred Shares and a $0.1 million 04 05 paper loss due to the below-market charters of the four vessels acquired during the quarter. Adjusted EBITDA was $1.6 million. Please turn to Slide 4 for our chartering and operational highlights. The highlight of the quarter was the delivery of the previously announced four vessels agreed to be acquired in Q4. Specifically, we took delivery between the 2nd and 7th of August of the following ships. And I note here, that there is a small error in the presentation, noting all the ships as being of the same