Euroseas Ltd. Q4 FY2024 earnings call

• Delivered Motor Vessel Dear Panel and Motor Vessel Symeon P on January 7 and 8, 2025, which commenced charters at $32,000 per day. - Various chartering developments including Motor Vessel AEGEAN Express fixed for 10-12 months at $16,700 per day, and others. - Board declared a quarterly dividend of $0.65 per common share. - Repurchased 425,000 common shares since May 2022. - Spun off Euroholdings Ltd, which sold Motor Vessel Diamantis for net proceeds of about $13 million. - Fleet utilization rate in Q4 2024 was 99.6%, with operating expenses lower than prior year. - Market overview: Charter rates had slight decline except larger segments, secondhand prices up 7% Q4 2024, newbuilding price index up 1% q-o-q.

For the fourth quarter of 2024, Euroseas reported total net revenues of $53.3 million, a net income of $24.4 million, and adjusted EBITDA of $32.8 million. For the full year 2024, total net revenues were $212.9 million, net income was $112.8 million, and adjusted EBITDA was $135.8 million. The company's fleet includes 24 vessels as of December 2024, with a total carrying capacity of just under 71,000 TEU and an average age of about 13.5 years.

• Expect loan repayments in 2025: $24.4 million loan repayments and $16.25 million balloon repayments. - 2026 scheduled repayments: $19.5 million with no balloon payments. - 2027: $16.85 million loan payments and $20 million balloon payments. - Projected cash flow breakeven for 2025 around $12,600 per vessel per day, significantly below average daily earnings.

• Geopolitical risks in Red Sea region, ongoing Houthi threat affecting shipping routes. - Trade policy changes, such as U.S. tariffs and fees on Chinese built/owned vessels entering U.S. ports. - Fleet growth leading to potential supply-demand imbalance, especially with new deliveries entering market. - Environmental regulations posing risks for older vessels in certain segments.

Q: While we haven't removed the two vessels from our estimates yet, is it safe to do so and how does it affect income statements?

A: Yes, and Euroseas’ income statements for the period will be based on the drop-down as of January 8.

Q: What are expectations for 2025 off-hire days?

A: Budgeting about 70-75 days for dry dockings in 2025.

Q: Would the rate for M/V Oakland and similar vessels be similar to current market?

A: Current market for those ships is around $35,500 per day for longer durations, shorter durations may have higher rates.

Q: Tasos, talk about fourth quarter OpEx G&A per day and first quarter reporting?

A: Fourth quarter has year-end bonus affecting G&A, first quarter will include earnings from Euroholdings up to distribution date with adjusted earnings provided.

Q: Can you talk about stock buybacks and capital allocation?

A: Stock buybacks are considered, will use if share price doesn't respond as hoped, and look at investment opportunities with cash.