EuroDry Ltd. (EDRY) Tops Q4 EPS by 5c

EuroDry Ltd. (NASDAQ: EDRY) reported Q4 EPS of ($0.34), $0.05 better than the analyst estimate of ($0.39). Revenue for the quarter came in at $6.4 million versus the consensus estimate of $6.3 million.

Fourth Quarter 2020 Highlights:

• Total net revenues of $6.4 million.
• Net loss of $0.3 million; net loss attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.7 million or $0.31 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $0.8 million or $0.34 adjusted loss per share basic and diluted.
• Adjusted EBITDA1 was $1.8 million.
• An average of 7.0 vessels were owned and operated during the fourth quarter of 2020 earning an average time charter equivalent rate of $10,761 per day.
• The Company declared a dividend of $0.4 million on its Series B Preferred Shares. The dividend will be paid in-kind by issuing additional Series B Preferred Shares.

Aristides Pittas, Chairman and CEO of EuroDry, commented:“During the fourth quarter of 2020 and especially in the beginning of 2021, the drybulk market improved gradually and reached levels last seen in the fall of 2019 just before the COVID-19 pandemic took center stage. Given the historically low orderbook, at only about 6% of the existing fleet, and the expected rebound of drybulk seaborne trade as vaccines help control COVID-19, we anticipate economic fundamentals that would support a strong charter market throughout 2021. We believe, our fleet is well positioned to take advantage of the higher market rates as the equivalent of 85% of our fleet is exposed to market. Our fourth quarter results were influenced by the scheduled drydocking of M/V Xenia the cost of which was a contributing factor in the quarter’s loss; with no drydockings scheduled within this year and assuming charter rates remain near current levels, we would expect a meaningfully profitable year during 2021.

“At the same time, our increased liquidity, following our recent debt refinancings and preferred shares dividend rate reduction, allows us to pursue some of our fleet expansion plans. As always, we are looking at the capital markets, private and public, to fund our broader growth strategy which includes taking advantage of our public listing to provide a consolidation platform for other owners and fleets.”

Tasos Aslidis, Chief Financial Officer of EuroDry, commented: “Comparing our results for the fourth quarter of 2020 with the same period of 2019, our net revenues decreased by about $1.2 million, due to the lower time charter equivalent rates our vessels earned as compared to the fourth quarter of 2019.

“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased by approximately 5.1% during the fourth quarter of 2020 compared to the same quarter of last year, while for the full year 2020 we had an increase of approximately 5.8%. This increase is mainly due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs, the latter resulting from difficulties in crew rotation due to COVID-19 related restrictions. As always, we want to emphasize that cost control remains a key component of our strategy.

“Adjusted EBITDA during the fourth quarter of 2020 was $1.8 million compared to $3.8 million achieved for the fourth quarter of last year. As of December 31, 2020, our outstanding debt (excluding the unamortized loan fees) was $51.4 million versus restricted and unrestricted cash of approximately $4.6 million.”

For earnings history and earnings-related data on EuroDry Ltd. (EDRY) click here.

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