EuroDry .(EDRY) - 2025 Q1 - Quarterly Report

EuroDry Ltd. Q1 2025 Earnings Report First Quarter 2025 Financial Highlights The company reported a challenging quarter with a net loss of $3.7 million and negative Adjusted EBITDA, driven by lower charter rates Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Net Revenues | $9.2 million | | Net Loss (attributable to controlling shareholders) | $3.7 million | | Loss per Share (basic and diluted) | $1.35 | | Adjusted Net Loss (attributable to controlling shareholders) | $5.7 million | | Adjusted Loss per Share (basic and diluted) | $2.07 | | Adjusted EBITDA | $(1.0) million | | Average Vessels Owned & Operated | 12.8 | | Average Time Charter Equivalent (TCE) Rate | $7,167 per day | - Under its share repurchase plan of up to $10 million, the company has repurchased 334,674 shares for approximately $5.3 million to date[14] Management Commentary Management attributes poor results to low charter markets and maintains a cautious outlook while keeping vessels on short-term charters - CEO Aristides Pittas noted the company faced very low charter markets, resulting in a poor financial quarter amid ongoing geopolitical uncertainty[15] - The company's strategy is to employ vessels on short-term trip charters to capitalize on any potential market recovery[16] - Net revenues for Q1 2025 were down 36.2% compared to Q1 2024, mainly due to a 42.5% decrease in average TCE rates[17] - As of March 31, 2025, the company had outstanding debt of $105.2 million against approximately $11.3 million in cash[19] First Quarter 2025 Financial Results Net revenues fell 36.2% to $9.2 million, widening the net loss to $3.7 million despite a gain from a vessel sale Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | $9.2M | $14.4M | -36.2% | | Average TCE Rate | $7,167/day | $12,455/day | -42.5% | | Vessel Operating Expenses | $6.6M | $6.2M | +6.5% | | Net Loss (Controlling Shareholders) | $(3.7)M | $(1.8)M | +105.6% | | Loss Per Share | $(1.35) | $(0.65) | +107.7% | | Adjusted Loss Per Share | $(2.07) | $(1.18) | +75.4% | - The company sold the M/V Tasos for demolition for approximately $5 million, resulting in a gain on sale of $2.1 million in Q1 2025[24] - Interest and other financing costs decreased to $1.8 million from $2.1 million in Q1 2024, primarily due to lower benchmark rates on loans[25] Fleet Status The company's fleet of 12 vessels experienced lower utilization and significantly reduced TCE rates, with two newbuilds scheduled for 2027 Fleet Profile The fleet consists of 12 diverse drybulk carriers, with two Ultramax newbuilds set to expand capacity by 2027 - The current fleet comprises 12 vessels: 4 Panamax, 5 Ultramax, 2 Kamsarmax, and 1 Supramax, with a total cargo capacity of 843,402 dwt[31][61] - Two Ultramax vessels (63,500 dwt each) are under construction and scheduled for delivery in Q2 and Q3 2027[31][61] Summary Fleet Data Q1 2025 operational data shows a sharp decline in the average daily TCE rate alongside a slight increase in operating expenses Fleet Operational Data (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average number of vessels | 12.8 | 13.0 | | Available days for fleet | 1,155.0 | 1,130.5 | | Voyage days for fleet | 1,125.3 | 1,109.1 | | Fleet utilization | 97.4% | 98.1% | | Average Daily Results | | | | Time charter equivalent rate (TCE) | $7,167 | $12,455 | | Vessel operating expenses (ex-drydock) | $6,590 | $6,183 | | Drydocking expenses | $59 | $1,493 | Financial Statements The financial statements reflect a revenue decline, a wider net loss, and negative cash from operations for the quarter Consolidated Condensed Statements of Operations The statement of operations shows a net revenue of $9.2 million and a net loss of $4.0 million for Q1 2025 Q1 Statement of Operations Highlights (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenues | $9.21 | $14.42 | | Total Operating Expenses, net | $11.36 | $14.84 | | Operating Loss | $(2.15) | $(0.41) | | Net Loss | $(4.01) | $(1.91) | | Net Loss (Controlling Shareholders) | $(3.70) | $(1.78) | Consolidated Condensed Balance Sheets The balance sheet shows total assets of $211.0 million and total shareholders' equity of $101.8 million as of March 31, 2025 Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $17.8 | $23.3 | | Vessels, net | $182.3 | $185.5 | | Total Assets | $211.0 | $219.7 | | Total Current Liabilities | $17.5 | $18.8 | | Long-term Bank Loans | $91.6 | $95.4 | | Total Liabilities | $109.1 | $114.1 | | Total Shareholders' Equity | $101.8 | $105.6 | Consolidated Condensed Statements of Cash Flows The cash flow statement reveals a $2.3 million use of cash in operations, offset by proceeds from a vessel sale Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $(2.32) | $2.97 | | Net Cash from Investing Activities | $4.76 | $(0.31) | | Net Cash from Financing Activities | $(3.02) | $(4.05) | | Net Decrease in Cash | $(0.58) | $(1.39) | | Cash at End of Period | $11.33 | $12.71 | Reconciliation of Non-GAAP Financial Measures Reconciliations show a negative Adjusted EBITDA of $1.0 million and an adjusted net loss of $5.7 million for the quarter Adjusted EBITDA Reconciliation Adjusted EBITDA was $(1.0) million in Q1 2025, a significant decline from $2.1 million in the prior-year period Reconciliation to Adjusted EBITDA (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(4.01) | $(1.91) | | (+) Interest & other financing costs, net | $1.77 | $2.04 | | (+) Vessel depreciation | $3.22 | $3.44 | | (+/-) Unrealized/Realized derivative (gains)/losses | $(0.09) | $1.49 | | (+/-) Net gain on sale of vessel | $(2.08) | - | | Adjusted EBITDA | $(1.02) | $2.07 | Adjusted Net Loss Reconciliation Adjusted net loss attributable to controlling shareholders widened to $5.7 million, or $2.07 per share, in Q1 2025 Reconciliation to Adjusted Net Loss (in millions, except per share data) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to controlling shareholders | $(3.70) | $(1.78) | | (+/-) Unrealized (gain)/loss on derivatives | $0.13 | $(1.44) | | (+/-) Net gain on sale of vessel | $(2.08) | - | | Adjusted net loss attributable to controlling shareholders | $(5.66) | $(3.22) | | Adjusted loss per share | $(2.07) | $(1.18) | Company Overview EuroDry operates a fleet of 12 drybulk vessels with plans for expansion and is managed by the affiliated Eurobulk Ltd - EuroDry was formed in January 2018 and spun-off from Euroseas Ltd in May 2018, trading on NASDAQ under the ticker EDRY[59] - The company's operations are managed by Eurobulk Ltd, an affiliated ship management company[60] - The current fleet consists of 12 vessels with a total capacity of 843,402 dwt and will expand to 14 vessels with 970,402 dwt capacity after newbuild deliveries in 2027[61]