Core Viewpoint - Eurodry Ltd. is conducting a conference call to discuss its financial results for the first quarter of 2025, highlighting the company's performance and future expectations [5]. Group 1: Company Overview - Eurodry Ltd. is represented by key executives including Aristides J. Pittas, Chairman and CEO, and Tasos Aslidis, CFO, during the earnings call [5]. - The conference call is part of the company's effort to communicate its financial results for the three-month period ending March 31, 2025 [5]. Group 2: Financial Results Discussion - The call aims to provide insights into the financial performance of Eurodry Ltd. for Q1 2025, with a focus on key metrics and operational highlights [5].

EuroDry (EDRY) Q1 2025 Earnings Call June 05, 2025 10:00 AM ET Company Participants Aristides Pittas - Chairman, President & CEOAnastasios Aslidis - CFO, Treasurer & Director Conference Call Participants Mark Reichman - Senior Research AnalystTate Sullivan - Managing Director & Senior Industrials AnalystC.K. Poe Fratt - MD - Equity Research & Senior Transportation Analyst Operator Thank you for standing by, ladies and gentlemen, and welcome to the Eurodrive Limited Conference Call on the First Quarter twent ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total net revenues of $9.2 million, a 26.2% decrease from $14.4 million in Q1 2024, attributed to lower time charter rates and a reduced number of vessels operated [6][28] - The net loss attributable to controlling shareholders was $3.7 million, compared to a loss of $1.8 million in the same period last year, resulting in a loss per share of $1.35 [6][28] - Adjusted EBITDA for Q1 2025 was negative $1 million, down from $2.1 million in Q1 2024 [6][28] Business Line Data and Key Metrics Changes - The fleet currently consists of 12 vessels with an average age of 13.6 years and a total capacity of approximately 843,000 deadweight tons [9] - Fixed rate coverage for the remainder of the year is approximately 22%, excluding vessels under index-linked charters [11] Market Data and Key Metrics Changes - The dry bulk market has softened in Q1 2025, with average spot rates for Panamax vessels below $8,000 per day and one-year time charter rates around $12,000 per day [12] - The Baltic Panamax Index and Baltic Dry Index saw notable contractions, declining approximately 27% year-on-year [12] - The IMF revised global GDP growth forecasts for 2025 down to 2.8% from 3.3%, reflecting increased risks from tariffs and geopolitical tensions [13][14] Company Strategy and Development Direction - The company aims to modernize its fleet by selling older vessels and replacing them with younger ones, with plans to take delivery of two new vessels in 2027 [7][44] - The strategy includes opportunistic share repurchases to reflect confidence in long-term value [7] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the dry bulk sector outlook, citing geopolitical instability and a slowdown in key markets as contributing factors [18][22] - The company anticipates a softer market for the remainder of 2025, particularly in China, where dry bulk import volumes are not expected to replicate previous growth [22] Other Important Information - The company has repurchased 334,000 shares totaling $5.3 million as part of a $10 million share repurchase program initiated in August 2022 [7] - As of March 31, 2025, the company's outstanding debt was $105.2 million, with a projected cash flow breakeven level of approximately $11,935 per vessel per day [32][34] Q&A Session Summary Question: Will vessel operating expenses continue at the current level? - Management indicated that operating expenses were slightly over budget in Q1 but it is premature to predict future spending based on one quarter [39][40] Question: What is the forecast for scheduled off-hire days? - Management expects only one dry docking this year and anticipates minimal commercial off-hire days [41][43] Question: How is the fleet being managed regarding acquisitions and sales? - The company plans to sell older vessels and replace them with younger ones, depending on market conditions [44] Question: Are there opportunities to scrap older vessels? - Currently, there are no immediate candidates for scrapping, but management noted a slight increase in scrap activity in the market [48][49] Question: Have trade patterns changed due to tariffs? - Management noted no significant changes in trade patterns or loading/unloading times due to tariffs [52][55] Question: What is the status of the newbuild program? - The company expects to make a payment towards the end of the year for newbuilds, with further payments scheduled for 2026 [58][60] Question: Why was there no stock buyback in Q1? - Limited liquidity and expectations of market improvement were cited as reasons for not executing buybacks in Q1 [61]

Company Performance - EuroDry reported a quarterly loss of $2.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.84, and compared to a loss of $1.18 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $9.21 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.94%, but this was a decrease from year-ago revenues of $14.43 million [2] - EuroDry has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in meeting market expectations [2] Stock Outlook - EuroDry shares have lost approximately 21.8% since the beginning of the year, contrasting with the S&P 500's gain of 1.5%, highlighting underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $14.4 million, while for the current fiscal year, the estimate is -$0.43 on revenues of $53.95 million [7] - The estimate revisions trend for EuroDry is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Shipping industry, to which EuroDry belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating a challenging environment for companies in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact EuroDry's stock performance [5]

Earnings Presentation Quarter Ended March 31, 2025 1 June 5, 2025 Forward/Looking Statements Statements in this presentation may be "forward/looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward/looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Actual outcomes and results may differ materially from what is expressed or forecasted in such forwa ...

Core Viewpoint - EuroDry Ltd. reported a challenging first quarter of 2025, with significant declines in revenues and profitability due to low charter rates and market volatility, particularly influenced by external economic factors and geopolitical tensions [4][6][9]. Financial Performance - Total net revenues for Q1 2025 were $9.2 million, a decrease of 36.2% compared to $14.4 million in Q1 2024 [6][9]. - The average time charter equivalent rate dropped by 42.5% to $7,167 per day in Q1 2025 from $12,455 per day in Q1 2024 [6][9]. - Adjusted EBITDA for Q1 2025 was $(1.0) million, down from $2.1 million in Q1 2024 [8][17]. - The net loss attributable to controlling shareholders was $3.7 million, or $1.35 loss per share, compared to a net loss of $1.8 million, or $0.65 loss per share, in the same period of 2024 [16][18]. Operational Insights - The company operated an average of 12.8 vessels in Q1 2025, compared to 13.0 vessels in Q1 2024 [9][23]. - Vessel operating expenses increased to $6.6 million in Q1 2025 from $6.2 million in Q1 2024, primarily due to higher costs for spare parts and maintenance [7][10]. - The fleet utilization rate was 97.4% in Q1 2025, slightly down from 98.1% in Q1 2024 [24]. Strategic Decisions - The company opted not to lock vessels into longer duration charters at unprofitable levels, instead pursuing short-term trip charters to capitalize on potential market recoveries [5]. - EuroDry sold the M/V Tasos for approximately $5 million, resulting in a gain on sale of $2.1 million [13]. Market Conditions - The charter market was described as the lowest since the early COVID pandemic, with a slight rebound in April and May that was insufficient to restore profitability [4]. - The demand side of the supply/demand equation remains volatile, influenced by the steel industry's weakness and economic growth uncertainties in China, as well as ongoing geopolitical conflicts [4]. Fleet Profile - EuroDry's fleet consists of 12 vessels with a total cargo capacity of 843,402 dwt, including 4 Panamax, 5 Ultramax, and 2 Kamsarmax drybulk carriers [57]. - Two Ultramax vessels are under construction, expected to be delivered in 2027, which will increase the fleet to 14 vessels with a total capacity of 970,402 dwt [21][57].

Core Viewpoint - EuroDry Ltd. is set to release its financial results for the first quarter ended March 31, 2025, on June 5, 2025, before the market opens in New York [1]. Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast scheduled for June 5, 2025, at 10:00 a.m. Eastern Time [2]. - Participants can join the call by dialing in 10 minutes prior to the scheduled time using specific numbers provided [3]. - An audio webcast of the conference call will be available live and archived on the company's website [5]. Group 2: Company Overview - EuroDry Ltd. was established on January 8, 2018, to consolidate the drybulk fleet of Euroseas Ltd. into a separate public company and trades on NASDAQ under the ticker EDRY [7]. - The company operates in the dry cargo and drybulk shipping market, managing a fleet of 12 vessels with a total cargo capacity of 843,402 dwt [7]. - After the delivery of two Ultramax vessels in 2027, the fleet will expand to 14 vessels with a total carrying capacity of 970,402 dwt [7].

Financial Risks and Debt Management - As of December 31, 2024, the notional amount of one interest rate swap related to the fleet was $10.0 million, indicating potential exposure to fluctuations in interest rates [112]. - The company has total bank debt of $108.2 million as of December 31, 2024, with a repayment schedule requiring $12.1 million in 2025, $13.3 million in 2026, $20.0 million in 2027, and $62.8 million until 2030 [140]. - The existing loan agreements impose restrictive covenants that may limit the company's liquidity and corporate activities [138]. - The company may not be able to obtain additional debt financing due to the creditworthiness of its charterers and market conditions [142]. - The company has incurred secured debt to finance its fleet and expects to incur additional secured debt for newbuilding vessels [140]. - Changes in the fair value of derivative contracts that do not qualify for hedge accounting could affect net income and earnings per share attributable to controlling shareholders [112]. Corporate Governance and Shareholder Rights - Approximately 48% of the outstanding shares are owned by three major shareholders, giving them significant voting power and influence over corporate decisions [126]. - The company’s corporate governance practices are exempt from certain Nasdaq standards, which may limit shareholder protections compared to companies fully subject to these requirements [127]. - Shareholders may have fewer rights and protections under the corporate law of the Republic of the Marshall Islands compared to typical U.S. state law [215]. - Public shareholders may face more difficulty in protecting their interests against management actions compared to shareholders in U.S. incorporated companies [215]. - A notice of any shareholder meeting must be given at least 15 days in advance under Marshall Islands law, compared to 10 days in Delaware [215]. - Actions required to be taken by a meeting of shareholders may only be taken without a meeting if consent is in writing and signed by all shareholders entitled to vote under Marshall Islands law [215]. - The rights and fiduciary responsibilities of directors under Marshall Islands law are not as clearly established as in certain U.S. jurisdictions [215]. Operational and Market Risks - The company faces substantial competition from experienced companies with greater financial resources, which may impact its ability to secure profitable charters and vessel acquisitions [130]. - The operation of drybulk carriers presents unique risks, including potential damage during unloading that could negatively impact financial performance and ability to pay dividends [115]. - The company may face challenges in maintaining profitable employment for aging vessels, particularly during periods of decreased demand in the charter market [129]. - Labor interruptions could disrupt operations, potentially having a material adverse effect on the company's financial condition and ability to pay dividends [148]. - Technological innovation may reduce charter income and affect vessel demand and value, with competition from more efficient vessels potentially leading to significant decreases in charter hire payments and resale values [156]. - Developments in technology could disrupt global trade flows and supply chains, potentially decreasing shipping activity if fewer intermediate and raw inputs are traded [158]. - A decrease in spot voyage charter rates may incentivize charterers to default on their contracts, leading to significant losses for the company if charterers renegotiate or fail to meet obligations [159]. - The company may not have adequate insurance to cover all risks, which could adversely affect financial condition and results of operations if significant claims arise [160]. - Membership in P&I Associations may subject the company to additional funding calls based on the claims of other members, potentially resulting in significant expenses [161]. Growth and Acquisition Strategy - The company intends to grow through selective acquisitions of high-quality secondhand vessels, but risks include potential difficulties in managing growth and realizing expected benefits [120]. - The company may face difficulties in managing planned growth through acquisitions, which could negatively impact cash flows and liquidity [144]. Taxation and Regulatory Risks - The company may face adverse effects if it is determined to be a "passive foreign investment company" (PFIC) for U.S. tax purposes [189]. - The company believes it does not qualify as a PFIC, treating its time chartering income as services income rather than passive income [190]. - The company may be subject to a 4% United States federal income tax on 50% of its gross shipping income attributable to transportation that begins or ends in the United States, unless it qualifies for exemption under Section 883 of the Code [197]. - If the company does not qualify for the tax exemption under Section 883, it would face an effective 2% United States federal income tax on its U.S.-source shipping income, negatively impacting earnings available for distribution to shareholders [199]. Market Performance and Stock Volatility - The reported closing sale price of the company's common stock was $24.58 per share on June 24, 2024, $20.36 per share on October 1, 2024, and $11.05 per share on December 17, 2024, indicating significant volatility [205]. - The trading volume for the company's common stock has been low, which may cause it to trade at lower prices and make it difficult for shareholders to sell their shares [204]. - The market price of the company's common stock has been volatile, with fluctuations occurring without discernible announcements or developments [205]. - The international drybulk shipping industry has been highly unpredictable, and the company's stock price may be affected by extreme volatility in the stock markets and shipping industry [206]. Geopolitical and Economic Factors - The ongoing conflict in Ukraine and associated sanctions may adversely impact the company's business and operations, with potential for further economic sanctions against Russia [170]. - Trade tariffs and economic sanctions could limit trading activities and depress shipping demand, significantly affecting the company's financial condition [173]. - The company expects to operate primarily outside the United States, exposing it to political and governmental instability [180].

Financial Data and Key Metrics Changes - For Q4 2024, total net revenues were $14.5 million, an 8.7% decrease from $15.9 million in Q4 2023 [46] - The net loss attributable to controlling shareholders was $3.3 million, or $1.20 loss per share, compared to earnings of $0.13 per share in Q4 2023 [8][48] - Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in the same quarter last year [47] - For the full year 2024, total net revenues increased by 28.6% to $61.1 million from $47.6 million in 2023 [49] Business Line Data and Key Metrics Changes - The average time charter equivalent rate for vessels in Q4 2024 was $12,200 per vessel per day, down from $14,570 in Q4 2023 [52] - The commercial utilization rate for Q4 2024 was 100%, consistent with Q4 2023 [52] - Total operating expenses per vessel per day decreased to $7,087 in Q4 2024 from $7,640 in Q4 2023 [53] Market Data and Key Metrics Changes - Panamax rates declined, with the average one-year time charter rate dropping from $12,700 per day to $11,250 by the end of December 2024 [22] - The Baltic Panamax Index and Baltic Dry Index saw declines of 30% and 28% respectively during Q4 2024 [24] - Spot rates for Panamax vessels fell from $9,250 per day to $7,700 per day by the end of Q4 2024 [24] Company Strategy and Development Direction - The company signed a contract for two new Kamsarmax bulk carriers, scheduled for delivery in 2027, to enhance fleet capacity [12] - The fleet will consist of 12 vessels after the sale of the oldest vessel, with an average age reduction from 14.5 years to 13.6 years [18] - The company aims to maintain flexibility in chartering by primarily using short-term charters until market rates improve [21] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the dry bulk sector outlook due to macroeconomic risks and geopolitical tensions [30] - The IMF projects a slight improvement in global GDP growth to 3.3% in 2025, but advanced economies, particularly in Europe, face downgrades [26] - The company remains optimistic about potential charter rate recovery due to historically low order book levels in the dry bulk sector [40] Other Important Information - The company has repurchased 334,000 shares for a total of $5.3 million as part of its share repurchase program [10] - The average margin of debt as of December 31, 2024, was around 2.08% over LIBOR, with an effective cost of senior debt at approximately 6.3% [57] Q&A Session Summary Question: Was the $2.8 million impairment related to the vessel Tassos? - No, the impairment was related to another vessel, Santa Cruz, not Tassos [66] Question: Can you discuss the newbuild negotiations and shipyard experience? - The company has not built at the selected shipyard before but conducted extensive research and received positive feedback from other owners [68][70] Question: At what point would you begin locking in one-year charters? - The company is waiting for time charters to reach $15,000 to $16,000 per day before considering locking in [79] Question: What are the expectations for vessel expenses in 2025? - A preliminary budget indicates a conservative 3% increase in operating expenses over 2024 [84] Question: How will the newbuild payments be structured? - Payments include $14.4 million in 2026 and $7.2 million in 2027, with the final 60% due upon delivery [93] Question: What is the current state of the S&P market for acquisitions? - Prices for ten-year-old ships have dropped by about 15%, and the company is looking for further declines before considering acquisitions [99] Question: How current is the NAV mentioned? - The NAV reflects a valuation that has already accounted for a 15% drop in asset values [102]

Earnings Presentation Quarter Ended December 31, 2024 February 24, 2025 This presentation also contains historical data about the dry bulk trade, the dry bulk and the dry bulk. These figures have been compiled by the Company based on available data from a variety of sources like broker reports and various industry publications or represent Company's own estimates. The Company exercised reasonable care and judgment in preparing these estimates, however, the estimates provided herein may not match information ...