Euroseas (ESEA) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $49.06m and net income was $24.72m; FY revenue was $189.36m and net income was $114.55m.

• FY adjusted net income was $103.91m and adjusted EBITDA was $123.55m; reported results included impairment and charter-termination gains.

• A 20% increase to the quarterly dividend raised it to $0.60 per share.

Financial highlights

• Q4 revenue rose 14.4% YoY to $49.06m; net income increased 21.6% to $24.72m, with diluted EPS of $3.56 and adjusted diluted EPS of $3.61.

• Q4 adjusted EBITDA was $32.44m versus $22.91m YoY; adjusted net income was $25.03m.

• FY revenue increased 3.6% to $189.36m; net income was $114.55m versus $106.2m, and adjusted EBITDA was $123.55m versus $114.39m.

• FY diluted EPS was $16.52 and adjusted diluted EPS was $14.98.

Outlook and guidance

• Contracted revenue backlog exceeded $350m; more than 25% of 2025 operating days were covered at highly profitable levels.

• Six newbuildings totaling 13,800 TEU were scheduled for 2024 delivery: three in Q2, one in Q3 and two in Q4. Four were expected over the next four to five months.

• Charter coverage was ~71% for 2024 and ~23% for 2025.

• Remaining newbuilding equity needs were expected to be funded organically; liquidity was expected to increase during 2024 while funding newbuildings, dividends and share repurchases.