HispanicBusiness

Tasos Aslidis, Chief Financial Officer of Euroseas commented: "The results of the third quarter of 2012 reflect the continued depressed state of the containership market while, at the same time, our overall results benefited from above market charter rates of our drybulk fleet. Overall, lower revenues during the third quarter of 2012 partly offset by lower drydocking expenses and lower derivative losses during the quarter as compared to the third quarter of 2011 resulted in a $0.8 million loss during the third quarter of 2012 compared to a $0.6 million net income during the third quarter of 2011.

"Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, registered a decrease of about 1.4% during the third quarter of 2012 compared to the same quarter of last year and a decrease of about 0.2% for the nine month periods ended September 30, 2012 over the same period of 2011. Drydocking expenses expressed on a per vessel per day basis were lower by 71.6% in the nine month period of 2012 and 36.9% lower for the third quarter of 2012, respectively, as compared to the same periods in 2011. As always, we want to emphasize that cost control remains a key component of our strategy.

"As of September 30, 2012, our outstanding debt was $65.0 million versus restricted and unrestricted cash of about $45.4 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $16 million, a number low enough to provide us with significant operational cash flow comfort. All our debt covenants were satisfied as of September 30, 2012."

Third Quarter 2012 Results:
For the third quarter of 2012, the Company reported total net revenues of $13.4 million representing a 17.5% decrease over total net revenues of $16.2 million during the third quarter of 2011. The Company reported a net loss for the period of $0.8 million as compared to net income of $0.6 million for the third quarter of 2011. The results for the third quarter of 2012 include a $0.2 million net unrealized gain on derivatives and a $0.4 million realized loss on derivatives as compared to $1.0 million net unrealized loss on derivatives and trading securities and $0.1 million realized loss on derivatives for the same period of 2011.

Depreciation expenses for the third quarter of 2012 were $4.3 million, compared to the $4.6 million of the same period of 2011. On average, 15.00 vessels were owned and operated during the third quarter of 2012 earning an average time charter equivalent rate of $10,246 per day compared to 16.00 vessels in the same period of 2011 earning on average $11,633 per day.

Adjusted EBITDA for the third quarter of 2012 was $4.0 million, a 39.9% decrease from $6.7 million achieved during the third quarter of 2011. Basic and diluted loss per share for the third quarter of 2012 was $0.02, calculated on 45,210,705 basic and diluted weighted average number of shares outstanding, compared to $0.02 earnings per share for the third quarter of 2011, calculated on 31,825,313 basic and 31,880,335 diluted weighted average number of shares outstanding.

Excluding the effect on the loss for the quarter of the unrealized gain on derivatives and the realized loss on derivatives, the adjusted loss per share for the quarter ended September 30, 2012 would have been $0.01 per share basic and diluted compared to earnings of $0.05 per share for the quarter ended September 30, 2011. Usually, security analysts do not include the above items in their published estimates of earnings per share.