EuroDry .(US:EDRY)2022-08-09 21:14Financial Data and Key Metrics Changes - For Q2 2022, total net revenues were $21 million, a 48.8% increase from $14.1 million in Q2 2021, primarily due to a larger fleet and higher charter rates [31] - Net income for Q2 2022 was $10.6 million compared to $2.2 million in Q2 2021, with adjusted EBITDA rising to $13.7 million from $9.2 million [32][34] - For the first half of 2022, total net revenues reached $39.3 million, a 73.1% increase from $22.7 million in the same period of 2021 [36] Business Line Data and Key Metrics Changes - The fleet size increased by approximately 45% in Q2 2022 compared to Q2 2021, contributing to higher revenues [31] - Average daily charter rates for the fleet were $23,409 per vessel per day in Q2 2022, compared to $22,613 in Q2 2021 [42] Market Data and Key Metrics Changes - The average spot market rate for Panamax vessels was approximately $25,400 per day in Q2 2022, dropping to around $17,000 per day by July 2022 [14] - The one-year bank charter rate for Panamax vessels decreased from about $26,000 per day to $16,750 per day during the same period [15] Company Strategy and Development Direction - The company has initiated a share repurchase program of up to $10 million to support its stock price, marking its first such program in its history [6][60] - Management is currently reluctant to make new acquisitions due to high asset prices, preferring to buy back shares instead [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market remaining firm despite geopolitical tensions and macroeconomic headwinds [22] - The company anticipates a positive short-term market outlook due to traditional seasonal demand in the second half of the year [22] Other Important Information - The company reported a cash flow breakeven rate of $11,986 per vessel per day in Q2 2022, up from $10,614 in Q2 2021 [45] - As of June 30, 2022, the company had outstanding bank debt of approximately $71.8 million, with a projected cash flow breakeven rate of $13,100 per vessel per day for the next 12 months [53][54] Q&A Session Summary Question: How did the company decide on the size of the share repurchase plan? - The company based the initial size on current liquidity and the desire to support the stock price, with flexibility to adjust the amount as needed [59] Question: Is this the first repurchase plan in the company's history? - Yes, this is the first repurchase plan, initiated to support the stock price given its low valuation [60] Question: What is the refinancing plan for upcoming debt maturities? - The company plans to refinance a balloon payment due in late 2023 and has options to encumber additional vessels if needed [63] Question: What are the expectations for operating expenses in the next 12 months? - Operating expenses are expected to increase slightly, primarily due to higher fuel costs, but no dramatic shifts are anticipated [70] Question: What is the drydocking schedule for the upcoming quarters? - The company does not anticipate any drydocking in Q4 2022, with a typical expectation of one drydock per quarter [71]