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(1) The earnings/loss per share and the weighted average number of shares, basic and diluted, have been adjusted retroactively for all periods presented to give effect to the bonus element of the shares associated with the rights offering which expired on June 15, 2012.
Euroseas Ltd. Unaudited Condensed Balance Sheets (All amounts expressed in U.S. Dollars - except share amounts) December 31, September 30, 2011 2012ASSETSCurrent Assets: Cash and cash equivalents 31,204,863 35,864,580 Trade accounts receivable 1,370,886 1,828,161 Other receivables, net 2,324,131 2,399,279 Inventories 2,606,535 1,726,445 Due from related party 208,704 4,292,596 Restricted cash 870,111 1,592,061 Trading securities 27,473 - Prepaid expenses 264,884 371,632Total current assets 38,877,587 48,074,754Fixed assets: Vessels, net 237,063,878 211,217,840Long-term assets: Restricted cash 5,050,000 7,900,000 Deferred charges, net 697,951 350,110 Investment in joint venture 14,458,752 17,432,341 ------------- -------------Total long-term assets 257,270,581 236,900,291 ------------- -------------Total assets 296,148,168 284,975,045 ------------- -------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Long term debt, current portion 13,332,000 15,987,000 Trade accounts payable 1,886,766 2,292,843 Accrued expenses 1,659,594 1,393,991 Accrued dividends 47,525 63,854 Deferred revenue 2,268,038 1,210,194 Derivatives 1,907,088 1,731,998Total current liabilities 21,101,011 22,679,880Long-term liabilities: Long term debt, net of current portion 61,581,000 49,032,000 Derivatives 1,544,409 1,085,079Total long-term liabilities 63,125,409 50,117,079Total liabilities 84,226,420 72,796,959Shareholders' equity: Common stock (par value $0.03, 200,000,000 shares authorized, 45,210,705 issued and outstanding) 935,017 1,356,322 Preferred shares (par value $0.01, 20,000,000 shares authorized, no shares issued and outstanding) - - Additional paid-in capital 236,843,470 251,608,075 Accumulated deficit (25,856,739) (40,786,311) ------------- -------------Total shareholders' equity 211,921,748 212,178,086 ------------- -------------Total liabilities and shareholders' equity 296,148,168 284,975,045 ------------- ------------- Euroseas Ltd. Unaudited Condensed Statements of Cash Flows (All amounts expressed in U.S. Dollars) Nine Months Nine Months Ended Ended September 30, September 30, 2011 2012Cash flows from operating activities:Net income/(loss) 11,643 (11,180,739)Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation of vessels 13,761,417 13,102,514Amortization of deferred charges 110,632 104,449Amortization of fair value of time charters (1,318,211) -Losses in investment in joint venture 22,898 776,411Share-based compensation 411,293 517,731Unrealized loss / (gain) on derivatives, net 945,628 (634,420)Loss on sale of vessel - 8,568,234Loss / (gain) on trading securities 204,556 (20,373)Proceeds from sale of trading securities - 47,846Changes in operating assets and liabilities (3,821,807) (4,865,896)Net cash provided by operating activities 10,328,049 6,415,757Cash flows from investing activities:Contribution to joint venture - (3,750,000)Proceeds from sale of a vessel - 4,250,843Insurance proceeds 1,793,832 -Change in restricted cash (459,108) (3,571,950)Net cash provided by/(used in) investing activities 1,334,724 (3,071,107)Cash flows from financing activities:Dividends paid (6,239,217) (3,732,503)Proceeds from shares issued - 15,237,303Offering expenses paid - (295,733)Loan arrangements fees paid (220,000) -Repayment of long-term debt (9,969,000) (9,894,000)Net cash (used in)/provided by financing activities (16,428,217) 1,315,067Net (decrease)/increase in cash and cash equivalents (4,765,444) 4,659,717Cash and cash equivalents at beginning of period 34,273,518 31,204,863Cash and cash equivalents at end of period 29,508,074 35,864,580 Euroseas Ltd. Reconciliation of Adjusted EBITDA to Net Income / (loss) and Cash Flow Provided By Operating Activities (All amounts expressed in U.S. Dollars)---------------------------------------------------------------------------- Three Three Months Months Nine Months Nine Months Ended Ended Ended Ended September September September September 30, 2011 30, 2012 30, 2011 30, 2012----------------------------------------------------------------------------Net income / (loss) 575,147 (826,423) 11,643 (11,180,739)----------------------------------------------------------------------------Interest and finance costs, net (incl. interest income) 450,837 344,561 1,467,439 1,211,707----------------------------------------------------------------------------Depreciation 4,587,139 4,283,094 13,761,417 13,102,514----------------------------------------------------------------------------Net loss on sale of vessel - - - 8,568,234----------------------------------------------------------------------------Loss on derivatives, net 1,061,739 213,608 1,496,829 636,141----------------------------------------------------------------------------Amortization of deferred revenue of below market time charter acquired - - (1,318,211) -----------------------------------------------------------------------------Adjusted EBITDA 6,674,862 4,014,840 15,419,117 12,337,857============================================================================---------------------------------------------------------------------------- Three Three Months Months Nine Months Nine Months Ended Ended Ended Ended September September September September 30, 2011 30, 2012 30, 2011 30, 2012----------------------------------------------------------------------------Net cash flow provided by operating activities 4,790,866 243,126 10,328,049 6,415,757----------------------------------------------------------------------------Changes in operating assets / liabilities 1,494,098 3,724,804 3,821,807 4,865,896----------------------------------------------------------------------------Loss on derivatives, realized 116,798 419,766 551,202 1,270,560----------------------------------------------------------------------------Proceeds from sale of trading securities, gain on trading securities and equity loss in joint venture (91,340) (491,960) (227,454) (803,883)----------------------------------------------------------------------------Share-based compensation (52,214) (191,235) (411,293) (517,731)----------------------------------------------------------------------------Interest, net 416,654 310,339 1,356,806 1,107,258----------------------------------------------------------------------------Adjusted EBITDA 6,674,862 4,014,840 15,419,117 12,337,857============================================================================
