EuroDry Ltd. (NASDAQ: EDRY) reported Q4 EPS of $0.43, $0.20 better than the analyst estimate of $0.23. Revenue for the quarter came in at $7.6 million versus the consensus estimate of $7.91 million.

Fourth Quarter 2019 Highlights:

• Total net revenues of $7.6 million. Net income of $1.4 million; net income attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $1.03 million or $0.45 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $0.98 million or $0.43 per share basic and diluted.
• Adjusted EBITDA1 was $3.8 million.
• An average of 7.0 vessels were owned and operated during the fourth quarter of 2019 earning an average time charter equivalent rate of $12,439 per day.
• The Company declared its fourth cash dividend of $0.4 million on its Series B Preferred Shares.

Aristides Pittas, Chairman and CEO of EuroDry commented: “During the fourth quarter of 2019, the drybulk market experienced a decline in rates which in some cases exceeded a 20% drop compared to third quarter’s rates. This decline in rates was not fully reflected in the net revenues and time charter equivalent rate of the fourth quarter of 2019, due to the fact that certain vessels were employed under long-term time charters fixed in prior periods and certain vessels were fixed at favourable rates during the third quarter of 2019 running through the fourth quarter of 2019. However, the market continued declining during January and February of 2020 as, on the top of trade uncertainties which by December 2019 seemed to be subsiding, new concerns were added regarding the effects of the coronavirus epidemic on the world growth and trade.

The positive by-product of the uncertainties in the marketplace is the limited numbers of new orders placed and the declining orderbook as a percentage of the fleet. Thus, we continue to believe that drybulk markets could offer significant opportunities for sizable returns in the medium term.

In the capital markets, we continue to pursue opportunities to merge with other fleets to grow the company providing a platform for consolidation. At the same time, we are pursuing initiatives to increase EuroDry’s visibility amongst investors. We believe that such increased visibility with investors will help reduce the significant discount to the NAV our stock trades at, thus, offering additional upside to our shareholders and new investors alike.”

Tasos Aslidis, Chief Financial Officer of EuroDry commented: “The operating results of the fourth quarter of 2019 reflect the average level of charter rates our vessels enjoyed during the quarter which was similar to the average time charter equivalent rate our vessels earned in the fourth quarter of 2018.

Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased approximately 2.7% during the fourth quarter of 2019 compared to the same quarter of last year, while for the full year 2019 we had a decrease of approximately 7%. This decrease is mainly due to the lower general and administrative expenses incurred in the twelve months of 2019 compared to the same period of 2018. In the same period of 2018 general and administrative expenses were higher due to expenses incurred for the Spin-off and the operation of the Company as a separate public company. As always, we want to emphasize that cost control remains a key component of our strategy.

Adjusted EBITDA during the fourth quarter of 2019 was $3.8 compared to $3.5 million achieved for the fourth quarter of last year. As of December 31, 2019, our outstanding debt (excluding the unamortized loan fees) was $56.9 million versus restricted and unrestricted cash of approximately $9.1 million.”

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