EuroDry Ltd. (NASDAQ:EDRY) Q4 2024 Earnings Conference Call February 24, 2025 9:00 AM ET Company Participants Aristides Pittas - Chairman and CEO Tasos Aslidis - CFO Conference Call Participants Tate Sullivan - Maxim Group Mark Reichman - Noble Capital Markets Poe Fratt - Alliance Global Partners Operator Thank you for standing by, ladies and gentlemen. Welcome to the EuroDry Ltd. conference call on the fourth quarter 2024 financial results. We have both today, Mr. . Aristides Pittas, Chairman and Chief Exe ...

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 ...

EuroDry (EDRY) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -257.14%. A quarter ago, it was expected that this company would post a loss of $0.70 per share when it actually produced a loss of $1.42, delivering a surprise of -102.86%.Over the last four quarters, the company has not been ...

Core Viewpoint - EuroDry Ltd. reported a significant decline in drybulk market rates, reaching decade-long lows, primarily due to low demand from China and low trade volumes, but anticipates a recovery driven by Chinese government stimuli and seasonal market trends [5][6]. Fourth Quarter 2024 Highlights - Total net revenues for Q4 2024 were $14.5 million, an 8.8% decrease from $15.9 million in Q4 2023 [10]. - The company experienced a net loss attributable to controlling shareholders of $3.3 million, or $1.20 loss per share, compared to a net income of $0.3 million in the same period last year [21][22]. - Average time charter equivalent rate for vessels was $12,201 per day, down 16.3% from $14,570 per day in Q4 2023 [10][8]. - Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in Q4 2023 [9][22]. Full Year 2024 Highlights - Total net revenues for the full year 2024 were $61.1 million, a 28.3% increase from $47.6 million in 2023 [24]. - The net loss attributable to controlling shareholders for 2024 was $9.7 million, or $3.54 loss per share, compared to a net loss of $2.9 million in 2023 [34][36]. - Average time charter equivalent rate for the year was $13,039 per day, compared to $12,528 per day in 2023 [24]. Recent Developments - The company signed contracts for the construction of two ultramax bulk carriers, scheduled for delivery in 2027, with a total consideration of approximately $71.8 million [7]. - The company agreed to sell its oldest vessel, M/V Tasos, for approximately $5 million, expecting to record a gain of about $2.1 million from the sale [7][6]. Financial Performance - Vessel operating expenses for Q4 2024 were $6.6 million, an increase from $6.1 million in Q4 2023, attributed to a higher number of vessels operating [12]. - General and administrative expenses decreased to $0.8 million in Q4 2024 from $1.2 million in Q4 2023, due to reduced costs related to a partnership formation [14]. - The company recorded an impairment charge of $2.8 million in Q4 2024, reflecting a reduction in the carrying amount of a vessel to its estimated market value [17]. Fleet Profile - The company operated an average of 13.0 vessels in Q4 2024, compared to 12.2 vessels in the same period last year [8]. - The fleet's average daily results showed a time charter equivalent rate of $12,201 per day in Q4 2024, down from $14,570 per day in Q4 2023 [41].

Core Viewpoint - EuroDry Ltd. reported a significant decline in drybulk market rates, reaching decade-long lows, primarily due to reduced demand from China and low trade volumes. However, there are expectations for a recovery driven by Chinese government stimulus and seasonal market trends [5]. Fourth Quarter 2024 Highlights - Total net revenues for Q4 2024 were $14.5 million, an 8.8% decrease from $15.9 million in Q4 2023 [10]. - The company experienced a net loss attributable to controlling shareholders of $3.3 million, or $1.20 loss per share, compared to a net loss of $0.03 million in Q4 2023 [21][22]. - Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in Q4 2023 [9][22]. - The average time charter equivalent rate for vessels was $12,201 per day, a 16.3% decrease from $14,570 per day in Q4 2023 [10][8]. Full Year 2024 Highlights - Total net revenues for the full year 2024 were $61.1 million, representing a 28.3% increase from $47.6 million in 2023 [24]. - The net loss attributable to controlling shareholders for 2024 was $9.7 million, or $3.54 loss per share, compared to a net loss of $2.9 million in 2023 [34][36]. - Adjusted EBITDA for the full year 2024 was $12.4 million, down from $14.6 million in 2023 [35]. Recent Developments - The company signed contracts for the construction of two ultramax bulk carriers, scheduled for delivery in 2027, with a total consideration of approximately $71.8 million [7]. - EuroDry agreed to sell its oldest vessel, M/V Tasos, for approximately $5 million, expecting to record a gain of about $2.1 million from the sale [7]. Financial Performance - The average number of vessels operated in Q4 2024 was 13.0, compared to 12.2 in Q4 2023 [8]. - Vessel operating expenses for Q4 2024 were $6.6 million, up from $6.1 million in Q4 2023, attributed to the increased number of vessels [12]. - The company recorded an impairment charge of $2.8 million in Q4 2024, which did not exist in Q4 2023 [17]. Fleet Profile - EuroDry's fleet consists of 13 dry bulk vessels with a total deadweight tonnage of 918,502 [38]. - The average time charter equivalent rate for the fleet in 2024 was $13,039 per day, compared to $12,528 per day in 2023 [42].

Core Viewpoint - EuroDry Ltd. is set to release its financial results for the fourth quarter ended December 31, 2024, on February 24, 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 February 24, 2025, at 9:00 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, which will increase to 14 vessels with a capacity of approximately 970,402 dwt upon full delivery [7].

Core Viewpoint - EuroDry Ltd. has announced the sale of its oldest Panamax-size bulker, M/V Tasos, for approximately $5 million, which is expected to enhance the company's liquidity and allow for future investment opportunities [1][2]. Company Overview - EuroDry Ltd. operates in the dry cargo and drybulk shipping market, managing a fleet of vessels for seaborne transportation of drybulk cargoes [7]. - The company was formed on January 8, 2018, and trades on the NASDAQ under the ticker EDRY [6]. Fleet Profile - After the sale of M/V Tasos, EuroDry's fleet consists of 12 vessels with a total cargo capacity of 843,402 dwt, including 2 Kamsarmax, 4 Panamax, 5 Ultramax, and 1 Supramax drybulk carriers [3][8]. - The company has two Ultramax vessels under construction, which will increase the fleet capacity to approximately 970,402 dwt upon delivery [8]. Financial Impact - The sale of M/V Tasos is expected to generate a gain of approximately $2.1 million, equating to about $0.75 per share, thereby improving the company's near-term liquidity [2].

Financial Data and Key Metrics Changes - For Q3 2024, EuroDry reported total net revenues of $14.7 million, a 47% increase from $10 million in Q3 2023, primarily due to an increased average number of vessels operated [30] - The net loss attributable to controlling shareholders was $4.2 million, or $1.53 loss per share, significantly impacted by dry docking costs of approximately $4.5 million [7][8] - Adjusted EBITDA for Q3 2024 was $0.5 million, down from $3.1 million in Q3 2023 [32] - For the first nine months of 2024, total net revenues were $46.6 million, also a 47% increase from $31.7 million in the same period of 2023 [34] Business Line Data and Key Metrics Changes - The fleet consists of 13 vessels, with 63% secured on fixed-rate charters for the remainder of 2024, with daily rates ranging from $17,750 to $18,500 [14] - Dry docking expenses for Q3 2024 were significantly higher at $4.5 million compared to $0.8 million in Q3 2023, contributing to the loss [33] Market Data and Key Metrics Changes - Panamax vessels experienced a decline in both 1-year time charter and spot rates, with the average 1-year time charter rate dropping from $14,923 per day to $14,100 by the end of September 2024 [15] - The average spot rate fell from $20,563 per day to $11,500 per day by the end of Q3 2024, with further declines noted in subsequent weeks [16] - The IMF projects stable yet underwhelming global economic growth, with emerging markets like India expected to drive growth, while China's growth is projected to slow [17][19] Company Strategy and Development Direction - The company plans to capitalize on potential market improvements by securing shorter-term charters rather than longer ones at current low rates [53][55] - EuroDry is evaluating opportunities for growth through investments that will enhance shareholder returns [28] Management's Comments on Operating Environment and Future Outlook - Management expressed a belief that Q4 2024 and calendar year 2025 would show improvement compared to Q3 2024, despite current market challenges [12] - The anticipated upswing in dry bulk rates has not materialized as expected, with supply beginning to exceed demand [23] - The company expects a cash flow breakeven level of around $11,766 per vessel per day for the next 12 months, significantly lower than previous levels due to reduced dry docking expenses [43] Other Important Information - As of September 30, 2024, the company's outstanding debt was $94.6 million, with a pro forma basis of $110.6 million after recent refinancings [41] - The market value of the vessels is estimated at $248 million, significantly higher than the book value, indicating potential appreciation for shareholders [47] Q&A Session Summary Question: Renewal strategy for expiring charters - Management indicated that they would likely secure shorter-term charters due to current low market rates, with expectations of higher rates in 2025 [53][55] Question: Expectations for voyage expenses - Voyage expenses are influenced by fuel purchase and delivery, making them difficult to predict; modeling based on previous results was suggested [58] Question: Update on joint venture with NRP Project Finance - The joint venture is progressing well, with potential for future projects; current operations are being consolidated into EuroDry's financials [68] Question: Current weakness in dry bulk trade routes - Management noted that the weakness is relatively uniform across regions, with China's slowdown significantly impacting the market [69] Question: Details on recent refinancings - The company refinanced loans for four ships, extending maturities and lowering margins, with further details on balloon payments to be provided later [74]

1 Earnings Presentation Quarter Ended September 30, 2024 November 19, 2024 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 s ...

Company Performance - EuroDry reported a quarterly loss of $1.42 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.70, and compared to a loss of $0.24 per share a year ago, indicating an earnings surprise of -102.86% [1] - The company posted revenues of $14.71 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 11.22%, while year-ago revenues were $10.01 million [2] - Over the last four quarters, EuroDry has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - EuroDry shares have declined approximately 20.7% since the beginning of the year, contrasting with the S&P 500's gain of 23.6% [4] - The current Zacks Rank for EuroDry is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $18.86 million, and for the current fiscal year, it is -$0.85 on revenues of $67.3 million [8] - The trend of estimate revisions for EuroDry is mixed, which could change following the recent earnings report [7] Industry Context - The Transportation - Shipping industry, to which EuroDry belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [9]