Euroseas Ltd. Reports Results for the Nine-Month Period and Quarter Ended September 30, 2013

Euroseas Ltd. Reports Results for the Nine-Month Period and Quarter Ended 
September 30, 2013 
MAROUSSI, ATHENS, GREECE -- (Marketwired) -- 11/12/13 --  Euroseas
Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container
carrier vessels and provider of seaborne transportation for drybulk
and containerized cargoes, announced today its results for the three
and nine month periods ended September 30, 2013. 
Third Quarter 2013 Highlights: 


 
--  Net loss of $3.8 million or $0.08 loss per share basic and diluted on
    total net revenues of $9.0 million. Adjusted net loss(1) for the
    period was $5.0 million or $0.11 loss per share basic and diluted.
    
    
--  Adjusted EBITDA(1) was $(0.5) million.
    
    
--  An average of 14.28 vessels were owned and operated during the third
    quarter of 2013 earning an average time charter equivalent rate of
    $7,320 per day.
    
    
--  Suspended the quarterly dividend to focus all its resources in
    exploiting investment opportunities in the markets.

  
First Nine Months 2013 Highlights: 


 
--  Net loss of $17.3 million or $0.38 net loss per share basic and
    diluted on total net revenues of $29.5 million. Adjusted net loss(1)
    for the period was $15.3 million, or $0.34 net loss per share basic
    and diluted.
    
    
--  Adjusted EBITDA(1) was $(1.6) million.
    
    
--  An average of 14.75 vessels were owned and operated during the first
    nine months of 2013 earning an average time charter equivalent rate of
    $7,953 per day.

  
(1) Adjusted EBITDA, Adjusted net loss and Adjusted loss per share are
not recognized measurements under GAAP. Refer to a subsequent section
of the Press Release for the definitions and reconciliation of these
measurements to the most directly comparable financial measures
calculated and presented in accordance with U.S. GAAP. 
Aristides Pittas, Chairman and CEO of Euroseas, commented: "During
the third quarter and through October of 2013, the containership
market showed some signs of improvement, especially, in the small
vessel sizes that we operate, however the market should still be
characterized as depressed. On the contrary, drybulk rates increased
significantly in September and early October driven by the strength
of the Capesize market only to decline later but they remain at
higher levels than earlier in the year, especially, for Panamax size
vessels like ours. We expect to benefit from the higher rates as our
vessels roll-over their existing charters.  
"We are guardedly optimistic for 2014 for both sectors, as we see
supply pressures moderating and the focus shifting to demand and
economic growth. We believe that the current rather depressed
environment presents us with opportunities to acquire quality vessels
at attractive prices and position ourselves to benefit from a
turnaround of the market. We have recently made a commitment to
invest an additional $5m in our Euromar containership joint venture
while, in parallel, continue to evaluate opportunities in the drybulk
sector to which we would like to increase our exposure. In view of
the above, the Board decided to suspend our quarterly dividend to
help Euroseas grow faster at this low point in the cycle." 
Tasos Aslidis, Chief Financial Officer of Euroseas, commented: "The
results of the third quarter of 2013 were in line with our
expectations and reflect the continued low level of containership
charter rates and the relatively better charter rates earned on
average by our drybulk vessels. Overall, lower revenues during the
third quarter of 2013 were partly offset by lower operating expenses
and a $1.3 million gain from the sale of a vessel during the quarter
as compared to the third quarter of 2012 resulting in a $3.8 million
loss as compared to a $0.8 million loss during the third quarter of
2012. 
"Total daily vessel operating expenses, including management fees,
general and administrative expenses but excluding drydocking costs,
registered an increase of about 1.1% during the third quarter of 2013
compared to the same quarter of last year and an increase of about
2.2% for the nine month periods ended September 30, 2013 over the
same period of 2012. Drydocking expenses expressed on a per vessel
per day basis were higher by 363.1% in the nine month period of 2013
and 77.1% lower for the third quarter of 2013, respectively, as
compared to the same periods in 2012. As always, we want to emphasize
that cost control remains a key component of our strategy. 
"As of September 30, 2013, our outstanding debt was $52.1 million
versus restricted and unrestricted cash of about $29.4 million. All
our debt covenants were satisfied as of September 30, 2013." 
Third Quarter 2013 Results:
 For the third quarter of 2013, the
Company reported total net revenues of $9.0 million representing a
32.8% decrease over total net revenues of $13.4 million during the
third quarter of 2012. The Company reported a net loss for the period
of $0.08 per share as compared to net loss of $0.02 per share for the
third quarter of 2012. The results for the third quarter of 2013
include a $0.3 million unrealized gain on derivatives, a $0.4 million
realized loss on derivatives and $1.3 million gain on sale of a
vessel, as compared to $0.2 million unrealized gain on derivatives
and $0.4 million realized loss on derivatives for the same period of
2012.  
Depreciation expenses for the third quarter of 2013 were $4.0
million, compared to the $4.3 million of the same period of 2012. On
average, 14.28 vessels were owned and operated during the third
quarter of 2013 earning an average time charter equivalent rate of
$7,320 per day compared to 15.00 vessels in the same period of 2012
earning on average $10,246 per day.  
Adjusted EBITDA for the third quarter of 2013 was $(0.5) million, a
112.5% decrease from $4.0 million achieved during the third quarter
of 2012. Basic and diluted loss per share for the third quarter of
2013 was $0.08, calculated on 45,511,005 basic and diluted weighted
average number of shares outstanding, compared to $0.02 loss per
share for the third quarter of 2012, calculated on 45,210,705 basic
and diluted weighted average number of shares outstanding.  
Excluding the effect on the loss for the quarter of the gain on sale
of a vessel, the unrealized gain on derivatives and the realized loss
on derivatives, the adjusted loss per share for the quarter ended
September 30, 2013 would have been $0.11 per share basic and diluted
compared to loss of $0.01 per share for the quarter ended September
30, 2012. Usually, security analysts do not include the above items
in their published estimates of earnings per share.  
First Nine Months 2013 Results:
 For the first nine months of 2013,
the Company reported total net revenues of $29.5 million representing
a 26.4% decrease over total net revenues of $40.1 million during the
first nine months of 2012. The Company reported a net loss for the
period of $17.3 million as compared to net loss of $11.2 million for
the first nine months of 2012. The results for the first nine months
of 2013 include a $1.2 million unrealized gain on derivatives, a $1.3
million realized loss on derivatives and a $1.9 million net loss on
sale of vessels as compared to a $0.7 million unrealized gain on
derivatives and realized gain on trading securities, a $1.3 million
realized loss on derivatives and a $8.6 million loss on sale of a
vessel, for the same period of 2012.  
Depreciation expenses for the first nine months of 2013 were $12.6
million compared to $13.1 million during the same period of 2012. On
average, 14.75 vessels were owned and operated during the first nine
months of 2013 earning an average time charter equivalent rate of
$7,953 per day compared to 15.28 vessels in the same period of 2012
earning on average $10,373 per day.  
Adjusted EBITDA for the first nine months of 2013 was $(1.6) million,
a 113% decrease from $12.3 million achieved during the first nine
months of 2012. Please see below for Adjusted EBITDA reconciliation
to net loss and cash flow provided by operating activities.  
Basic and diluted net loss per share for the first nine months of
2013 were $0.38, calculated on 45,383,405 weighted average number of
shares outstanding basic and diluted, respectively, compared to basic
and diluted net loss per share of $0.30 for the first nine months of
2012, calculated on 36,806,388 weighted average number of shares
outstanding basic and diluted, respectively.  
Excluding the effect on the loss for the first nine months of 2013 of
the unrealized gain on derivatives, realized loss on derivatives,
realized gain on trading securities and the net loss on sale of
vessels, the adjusted loss per share for the nine-month period ended
September 30, 2013 would have been $0.34 per share basic and diluted
compared to loss of $0.05 per share basic and diluted for the same
period in 2012. Usually, security analysts do not include the above
items in their published estimates of earnings per share. 


 
Fleet Profile:                                                              
The Euroseas Ltd. fleet profile is as follows:                              
                                                                            
----------------------------------------------------------------------------
                                                                            
Name             Type       Dwt     TEU   Year   Employment(*)    TCE Rate  
                                          Built                    ($/day)  
----------------------------------------------------------------------------
Dry Bulk                                                                    
 Vessels                                                                    
----------------------------------------------------------------------------
                                                TC 'til Feb-14              
                                                       +          $11,200   
                                                                   +50/50   
PANTELIS        Panamax    74,020         2000     1 Year in    Profit Share
                                                   Charterers               
                                                     Option       $14,200   
----------------------------------------------------------------------------
                                                Baumarine Pool Spot earnings
                                                 'til mid Nov-  since       
                                                      13,       February    
ELENI P         Panamax    72,119         1997                  2013        
                                                                (Baumarine) 
                                                 then TC 'til               
                                                     Oct-14    BPI - linked 
----------------------------------------------------------------------------
ARISTIDES                                                                   
 N.P.           Panamax    69,268         1993  TC 'til Feb-14     $7,500   
----------------------------------------------------------------------------
MONICA P       Handymax    46,667         1998  TC 'til Sep-14     $7,500   
----------------------------------------------------------------------------
Total Dry                                                                   
 Bulk              4      262,074                                           
 Vessels                                                                    
----------------------------------------------------------------------------
Container                                                                   
 Carriers                                                                   
----------------------------------------------------------------------------
EVRIDIKI G   Intermediate  34,677  2,556  2001  TC 'til Apr-14     $8,000   
----------------------------------------------------------------------------
TIGER BRIDGE Intermediate  31,627  2,228  1990  TC 'til Nov-13     $6,000   
----------------------------------------------------------------------------
AGGELIKI P   Intermediate  30,360  2,008  1998  TC 'til Feb-14     $6,000   
----------------------------------------------------------------------------
DESPINA P     Handy size   33,667  1,932  1990  TC 'til Feb-14     $6,400   
----------------------------------------------------------------------------
                                                 TC 'til March    $6,500    
CAPTAIN                                             -14 + 12                
 COSTAS       Handy size   30,007  1,742  1992     months in      $11,500   
(ex-OEL                                            Charterers               
 TRANSWORLD)                                         Option                 
----------------------------------------------------------------------------
JOANNA        Handy size   22,301  1,732  1999  TC 'til Apr-14     $7,500   
----------------------------------------------------------------------------
                                                  TC 'til Dec               
                                                      -13          $6,250   
MARINOS       Handy size   23,596  1,599  1993                              
                                                then 'til Mar-     $7,150   
                                                       14                   
----------------------------------------------------------------------------
MANOLIS P     Handy size   20,346  1,452  1995  TC 'til Apr-14     $7,200   
----------------------------------------------------------------------------
NINOS                                                                       
(ex-YM          Feeder     18,253  1,169  1990  TC 'til Nov-13     $7,690   
 QINGDAO I)                                                                 
----------------------------------------------------------------------------
                                                TC 'til Mar-14              
                                                       +           $7,700   
KUO HSIUNG      Feeder     18,154  1,169  1993   12 months in               
                                                   Charterers     $11,500   
                                                     Option                 
----------------------------------------------------------------------------
Total                                                                       
 Container        10      262,988 17,587                                    
 Carriers                                                                   
----------------------------------------------------------------------------
Fleet Grand                                                                 
 Total            14      525,062 17,587                                    
----------------------------------------------------------------------------
(*) Dates indicate earliest re-delivery of the vessels                      
                                                                            
                                                                            
                                                                            
Summary Fleet Data:                                                         
                                                                            
----------------------------------------------------------------------------
                                      Three      Three       Nine       Nine
                                    Months,    Months,    Months,    Months,
                                      Ended     Ended       Ended      Ended
                                  September  September  September  September
                                   30, 2012   30, 2013   30, 2012   30, 2013
----------------------------------------------------------------------------
FLEET DATA                                                                  
Average number of vessels (1)         15.00      14.28      15.28      14.75
Calendar days for fleet (2)         1,380.0    1,314.0    4,186.0    4,025.0
Scheduled off-hire days incl.                                               
 laid-up (3)                           13.1       26.5       16.1      126.9
Available days for fleet (4) =                                              
 (2) - (3)                          1,366.9    1,287.5    4,169.9    3,898.1
Commercial off-hire days (5)           13.5       34.7      205.8      167.2
Operational off-hire days (6)           6.6       22.0       21.2       41.4
Voyage days for fleet (7) = (4)                                             
 - (5) - (6)                        1,346.8    1,230.8    3,942.9    3,689.6
Fleet utilization (8) = (7) /                                               
 (4)                                  98.5%      95.6%      94.6%      94.6%
Fleet utilization, commercial                                               
 (9) = ((4) - (5)) / (4)              99.0%      97.3%      95.1%      95.7%
Fleet utilization, operational                                              
 (10) = ((4) - (6)) / (4)             99.5%      98.3%      99.5%      98.9%
                                                                            
AVERAGE DAILY RESULTS                                                       
Time charter equivalent rate                                                
 (11)                                10,246      7,320     10,373      7,953
                                                                            
Vessel operating expenses excl.                                             
 drydocking expenses (12)             5,491      5,637      5,407      5,575
General and administrative                                                  
 expenses (13)                          653        572        659        622
Total vessel operating expenses                                             
 (14)                                 6,144      6,209      6,066      6,197
----------------------------------------------------------------------------
Drydocking expenses (15)                238        421        184        853
----------------------------------------------------------------------------
                                                                            
(1) Average number of vessels is the number of vessels that constituted our 
fleet for the relevant period, as measured by the sum of the number of      
calendar days each vessel was a part of our fleet during the period divided 
by the number of calendar days in that period.                              
                                                                            
(2) Calendar days. We define calendar days as the total number of days in a 
period during which each vessel in our fleet was in our possession including
off-hire days associated with major repairs, drydockings or special or      
intermediate surveys or days of vessels in lay-up. Calendar days are an     
indicator of the size of our fleet over a period and affect both the amount 
of revenues and the amount of expenses that we record during that period.   
                                                                            
(3) The scheduled off-hire days including vessels laid-up are days          
associated with scheduled repairs, drydockings or special or intermediate   
surveys or days of vessels in lay-up. We use available days to measure the  
number of days in a period during which vessels were available to generate  
revenues.                                                                   
                                                                            
(4) Available days. We define available days as the total number of days in 
a period during which each vessel in our fleet was in our possession net of 
scheduled off-hire days including days of vessels laid-up.                  
                                                                            
(5) Commercial off-hire days. We define commercial off-hire days as days    
waiting to find employment.                                                 
                                                                            
(6) Operational off-hire days. We define operational off-hire days as days  
associated with unscheduled repairs or other off-hire time related to the   
operation of the vessels,                                                   
                                                                            
(7) Voyage days. We define voyage days as the total number of days in a     
period during which each vessel in our fleet was in our possession net of   
commercial and operational off-hire days. We use voyage days to measure the 
number of days in a period during which vessels actually generate revenues. 
                                                                            
(8) Fleet utilization. We calculate fleet utilization by dividing the number
of our voyage days during a period by the number of our available days      
during that period. We use fleet utilization to measure a company's         
efficiency in finding suitable employment for its vessels and minimizing the
amount of days that its vessels are off-hire for reasons such as unscheduled
repairs or days waiting to find employment.                                 
                                                                            
(9) Fleet utilization, commercial. We calculate commercial fleet utilization
by dividing our available days net of commercial off-hire days during a     
period by our available days during that period.                            
                                                                            
(10) Fleet utilization, operational. We calculate operational fleet         
utilization by dividing our available days net of operational off-hire days 
during a period by our available days during that period.                   
                                                                            
(11) Time charter equivalent, or TCE, is a measure of the average daily     
revenue performance of a vessel on a per voyage basis. Our method of        
calculating TCE is consistent with industry standards and is determined by  
dividing revenue generated net of voyage expenses by voyage days for the    
relevant time period. Voyage expenses primarily consist of port, canal and  
fuel costs that are unique to a particular voyage, which would otherwise be 
paid by the charterer under a time charter contract. TCE is a standard      
shipping industry performance measure used primarily to compare period-to-  
period changes in a shipping company's performance despite changes in the   
mix of charter types (i.e., spot voyage charters, time charters and bareboat
charters) under which the vessels may be employed between the periods.      
                                                                            
(12) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs 
and management fees are calculated by dividing vessel operating expenses by 
fleet calendar days for the relevant time period. Drydocking expenses are   
reported separately.                                                        
                                                                            
(13) Daily general and administrative expense is calculated by dividing     
general and administrative expense by fleet calendar days for the relevant  
time period.                                                                
                                                                            
(14) Total vessel operating expenses, or TVOE, is a measure of our total    
expenses associated with operating our vessels. TVOE is the sum of vessel   
operating expenses excluding drydocking expenses and general and            
administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet 
calendar days for the relevant time period.                                 
                                                                            
(15) Drydocking expenses, which include expenses during drydockings that    
would have been capitalized and amortized under the deferral method divided 
by the fleet calendar days for the relevant period. Drydocking expenses     
could vary substantially from period to period depending on how many vessels
underwent drydocking during the period.                                     

 
Conference Call and Webcast: 
 Later today, Tuesday, November 12, 2013
at 10:30 a.m. EST, the company's management will host a conference
call to discuss the results.  
Conference Call details: 
 Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 1 866
819 7111 (from the US), 0800 953 0329 (from the UK) or +44 (0)1452
542 301 (from outside the US). Please quote "Euroseas". 
A replay of the conference call will be available until November 19,
2013. The United States replay number is 1(866) 247-4222; from the UK
0(800) 953-1533; the standard international replay number is (+44)
(0) 1452 550 000 and the access code required for the replay is:
6973591#. 
Audio webcast - Slides Presentation:
 There will be a live and then
archived audio webcast of the conference call, via the internet
through the Euroseas website (www.euroseas.gr). Participants to the
live webcast should register on the website approximately 10 minutes
prior to the start of the webcast. A slide presentation on the Third
Quarter and First Nine Months 2013 results in PDF format will also be
available 30 minutes prior to the conference call and webcast
accessible on the company's website (www.euroseas.gr) on the webcast
page. Participants to the webcast can download the PDF presentation. 


 
                                                                            
                                Euroseas Ltd.                               
          Unaudited Consolidated Condensed Statements of Operations         
      (All amounts expressed in U.S. Dollars - except number of shares)     
                                                                            
----------------------------------------------------------------------------
                      Three Months  Three Months  Nine Months   Nine Months 
                         Ended         Ended         Ended         Ended    
                     September 30, September 30, September 30, September 30,
                          2012          2013          2012          2013    
----------------------------------------------------------------------------
                                                                            
Revenues                                                                    
      Voyage revenue    13,963,059     9,397,983    41,978,935    30,723,705
       Related party                                                        
             revenue        60,000        60,000       180,000       180,000
         Commissions     (641,529)     (460,891)   (2,065,710)   (1,423,174)
Net revenues            13,381,530     8,997,092    40,093,225    29,480,531
                                                                            
Operating expenses                                                          
     Voyage expenses       163,918       388,335     1,100,789     1,386,053
    Vessel operating                                                        
            expenses     6,374,860     6,195,645    18,891,944    18,754,544
 Drydocking expenses       328,032       553,007       770,648     3,431,651
        Depreciation     4,283,094     4,048,209    13,102,514    12,550,102
     Management fees     1,202,281     1,211,116     3,741,738     3,684,766
   Other general and                                                        
      administrative       901,233       751,110                            
            expenses                                 2,759,194     2,505,506
Net loss / (gain) on             -   (1,256,659)     8,568,234     1,935,019
     sale of vessels                                                        
        Other income     (101,500)             -     (254,604)             -
Total operating         13,151,918    11,890,763    48,680,457    44,247,641
 expenses                                                                   
                                                                            
Operating                  229,612   (2,893,671)   (8,587,232)  (14,767,110)
 income/(loss)                                                              
                                                                            
Other                                                                       
 income/(expenses)                                                          
Interest and finance     (475,589)     (450,952)   (1,504,102)   (1,419,529)
                cost                                                        
Loss on derivatives,     (213,608)     (106,115)     (636,141)     (108,142)
                 net                                                        
     Gain on trading             -             -        20,373             -
          securities                                                        
    Foreign exchange       (5,906)       (1,167)        10,379         2,599
         (loss)/gain                                                        
     Interest income       131,028        73,863       292,395       310,681
 Other expenses, net     (564,075)     (484,371)   (1,817,096)   (1,214,391)
Equity loss in joint     (491,960)     (430,565)                            
             venture                                 (776,411)   (1,328,023)
----------------------------------------------------------------------------
                                                                            
Net loss                 (826,423)   (3,808,607)  (11,180,739)  (17,309,524)
----------------------------------------------------------------------------
Loss, per share,                                                            
 basic and diluted          (0.02)        (0.08)        (0.30)        (0.38)
----------------------------------------------------------------------------
Weighted average                                                            
 number of shares                                                           
 basic and diluted      45,210,705    45,511,005    36,806,388    45,383,405
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                Euroseas Ltd.                               
               Unaudited Consolidated Condensed Balance Sheets              
      (All amounts expressed in U.S. Dollars - except number of shares)     
                                                                            
                                             December 31,    September 30,  
                                             2012            2013           
                                                                            
ASSETS                                                                      
Current Assets:                                                             
  Cash and cash equivalents                       33,374,960      18,725,228
  Trade accounts receivable                        1,425,171       2,240,870
  Other receivables, net                           2,310,111       1,721,625
  Inventories                                      1,812,636       1,576,882
  Due from related party                           4,948,443          41,981
  Restricted cash                                    926,011       1,538,952
  Prepaid expenses                                   273,080         311,834
Total current assets                              45,070,412      26,157,372
                                                                            
Fixed assets:                                                               
  Vessels, net                                   206,934,746     191,104,869
Long-term assets:                                                           
  Restricted cash                                  9,000,000       9,100,000
  Deferred charges, net                              318,578         202,834
  Investment in joint venture                     16,989,061      21,911,037
----------------------------------------------------------------------------
Total long-term assets                           233,242,385     222,318,740
----------------------------------------------------------------------------
Total assets                                     278,312,797     248,476,112
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities:                                                        
  Long term debt, current portion                 15.937.000      16,737,000
  Trade accounts payable                           2,438,716       2,479,372
  Accrued expenses                                 1,143,626         726,754
  Accrued dividends                                   36,424          26,100
  Deferred revenue                                 1,093,317       1,296,307
  Derivatives                                      1,718,438         911,565
Total current liabilities                         22,367,521      22,177,098
                                                                            
Long-term liabilities:                                                      
  Long term debt, net of current portion          45.644.000      35,320,000
  Derivatives                                        675,130         255,043
                                                                            
Total long-term liabilities                       46,319,130      35,575,043
Total liabilities                                 68,686,651      57,752,141
                                                                            
Shareholders' equity:                                                       
  Common stock (par value $0.03, 200,000,000                                
   shares authorized, 45,319,605 and                                        
   45,511,005 issued and outstanding,                                       
   respectively)                                   1,359,588       1,365,328
  Preferred shares (par value $0.01,                                        
   20,000,000 shares authorized, no shares                                  
   issued and outstanding)                                 -               -
  Additional paid-in capital                     251,758,459     252,227,639
  Accumulated deficit                           (43,491,901)    (62,868,996)
----------------------------------------------------------------------------
Total shareholders' equity                       209,626,146     190,723,971
----------------------------------------------------------------------------
Total liabilities and shareholders' equity       278,312,797     248,476,112
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                Euroseas Ltd.                               
          Unaudited Consolidated Condensed Statements of Cash Flows         
                   (All amounts expressed in U.S. Dollars)                  
                                                                            
                                                  Nine Months    Nine Months
                                                        Ended          Ended
                                                September 30,  September 30,
                                                         2012           2013
                                                                            
Cash flows from operating activities:                                       
Net loss                                         (11,180,739)   (17,309,524)
Adjustments to reconcile net loss to net cash                               
 provided by operating activities:                                          
Depreciation of vessels                            13,102,514     12,550,102
Amortization of deferred charges                      104,449        115,744
Loss in investment in joint venture                   776,411      1,328,023
Share-based compensation                              517,731        474,920
Unrealized gain on derivatives                      (634,420)    (1,226,960)
Loss on sale of vessels                             8,568,234      1,935,019
Gain on trading securities                           (20,373)              -
Proceeds from sale of trading securities               47,846              -
Changes in operating assets and liabilities       (4,865,896)      4,703,023
Net cash provided by operating activities           6,415,757      2,570,347
                                                                            
Cash flows from investing activities:                                       
Contribution to joint venture                     (3,750,000)    (6,250,000)
Purchase of a vessel                                        -    (5,978,062)
Proceeds from sale of vessels                       4,250,843      7,322,818
Change in restricted cash                         (3,571,950)      (712,941)
Net cash used in investing activities             (3,071,107)    (5,618,185)
                                                                            
Cash flows from financing activities:                                       
Dividends paid                                    (3,732,503)    (2,077,894)
Proceeds from shares issued                        15,237,303              -
Offering expenses paid                              (295,733)              -
Repayment of long-term debt                       (9,894,000)    (9,524,000)
Net cash provided by / (used in) financing                                  
 activities                                         1,315,067   (11,601,894)
                                                                            
Net increase / (decrease) in cash and cash                                  
 equivalents                                        4,659,717   (14,649,732)
Cash and cash equivalents at beginning of                                   
 period                                            31,204,863     33,374,960
Cash and cash equivalents at end of period         35,864,580     18,725,228
                                                                            
                                                                            
                                                                            
                                Euroseas Ltd.                               
                    Reconciliation of Adjusted EBITDA to                    
     Net loss and Cash Flow Provided By / (Used In) Operating Activities    
                   (All amounts expressed in U.S. Dollars)                  
                                                                            
----------------------------------------------------------------------------
                                                                            
                         Three Months Three Months  Nine Months  Nine Months
                             Ended        Ended        Ended        Ended   
                           September    September    September    September 
                           30, 2012     30, 2013     30, 2012     30, 2013  
----------------------------------------------------------------------------
                                                                            
Net loss                    (826,423)  (3,808,607) (11,180,739) (17,309,524)
----------------------------------------------------------------------------
                                                                            
Interest and finance                                                        
 costs, net (incl.                                                          
 interest income)             344,561      377,089    1,211,707    1,108,848
----------------------------------------------------------------------------
                                                                            
Depreciation                4,283,094    4,048,209   13,102,514   12,550,102
----------------------------------------------------------------------------
Net (gain) / loss on                                                        
 sale of vessel                     -  (1,256,659)    8,568,234    1,935,019
----------------------------------------------------------------------------
                                                                            
Loss on derivatives, net      213,608      106,115      636,141      108,142
----------------------------------------------------------------------------
                                                                            
Adjusted EBITDA             4,014,840    (533,853)   12,337,857  (1,607,413)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
                         Three Months Three Months  Nine Months  Nine Months
                             Ended        Ended        Ended        Ended   
                           September    September    September    September 
                           30, 2012     30, 2013     30, 2012     30, 2013  
----------------------------------------------------------------------------
Net cash flow provided                                                      
 by / (used in)                                                             
 operating activities         243,126    (312,863)    6,415,757    2,570,347
----------------------------------------------------------------------------
                                                                            
Changes in operating                                                        
 assets / liabilities       3,724,804    (478,653)    4,865,896  (4,703,023)
----------------------------------------------------------------------------
                                                                            
Loss on derivatives,                                                        
 realized                     419,766      450,138    1,270,560    1,335,102
----------------------------------------------------------------------------
                                                                            
Proceeds from sale of                                                       
 trading securities,                                                        
 gain on trading                                                            
 securities and equity                                                      
 loss in joint venture,                                                     
 net                        (491,960)    (430,565)    (803,883)  (1,328,023)
----------------------------------------------------------------------------
                                                                            
Share-based compensation    (191,235)    (107,491)    (517,731)    (474,920)
----------------------------------------------------------------------------
                                                                            
Interest, net                 310,339      345,581    1,107,258      993,104
----------------------------------------------------------------------------
                                                                            
Adjusted EBITDA             4,014,840    (533,853)   12,337,857  (1,607,413)
----------------------------------------------------------------------------

 
Adjusted EBITDA Reconciliation:
 Euroseas Ltd. considers Adjusted
EBITDA to represent net earnings / (loss) before interest, income
taxes, depreciation, amortization, gain / loss in derivatives, net
loss on sale of vessels. Adjusted EBITDA does not represent and
should not be considered as an alternative to net income /(loss) or
cash flow from operations, as determined by United States generally
accepted accounting principles, or U.S. GAAP, and our calculation of
Adjusted EBITDA may not be comparable to that reported by other
companies. Adjusted EBITDA is included herein because it is a basis
upon which we assess our financial performance and liquidity position
and because we believe that it presents useful information to
investors regarding a company's ability to service and/or incur
indebtedness. The Company's definition of Adjusted EBITDA may not be
the same as that used by other companies in the shipping or other
industries.  


 
                                                                            
                                Euroseas Ltd.                               
               Reconciliation of Net loss to Adjusted net loss              
  (All amounts expressed in U.S. Dollars - except share data and number of  
                                   shares)                                  
                                                                            
----------------------------------------------------------------------------
                                                                            
                         Three Months Three Months  Nine Months  Nine Months
                             Ended        Ended        Ended        Ended   
                           September    September    September    September 
                           30, 2012     30, 2013     30, 2012     30, 2013  
----------------------------------------------------------------------------
                                                                            
Net loss                    (826,423)  (3,808,607) (11,180,739) (17,309,524)
----------------------------------------------------------------------------
                                                                            
Unrealized gain on                                                          
 derivatives                (206,158)    (344,023)    (634,420)  (1,226,960)
----------------------------------------------------------------------------
Realized gain on trading                                                    
 securities                         -            -     (20,373)            -
----------------------------------------------------------------------------
                                                                            
Realized loss on                                                            
 derivatives                  419,766      450,138    1,270,560    1,335,102
----------------------------------------------------------------------------
                                                                            
Net loss / (gain) on                                                        
 sale of vessels                    -  (1,256,659)    8,568,234    1,935,019
----------------------------------------------------------------------------
                                                                            
Adjusted net loss           (612,815)  (4,959,151)  (1,996,738) (15,266,363)
----------------------------------------------------------------------------
                                                                            
Adjusted net loss per                                                       
 share, basic and                                                           
 diluted                       (0.01)       (0.11)       (0.05)       (0.34)
----------------------------------------------------------------------------
                                                                            
Weighted average number                                                     
 of shares, basic and                                                       
 diluted                   45,210,705   45,511,005   36,806,388   45,383,405
----------------------------------------------------------------------------

 
Adjusted Net loss and Adjusted Net loss per share Reconciliation: 
Euroseas Ltd. considers Adjusted Net loss to represent net loss
before gain / loss in derivatives, realized gain on trading
securities, and net loss / (gain) on sale of vessels. Adjusted Net
loss and Adjusted Net loss per share is included herein because we
believe it assists our management and investors by increasing the
comparability of the Company's fundamental performance from period to
period by excluding the potentially disparate effects between periods
of gain / loss in derivatives, realized gain on trading securities
and net (gain) / loss on sale of vessels, which items may
significantly affect results of operations between periods. 
Adjusted Net loss and Adjusted Net loss per share do not represent
and should not be considered as an alternative to net loss or loss
per share, as determined by U.S. GAAP, The Company's definition of
Adjusted Net loss and Adjusted Net loss per share may not be the same
as that used by other companies in the shipping or other industries 
About Euroseas Ltd. 
 Euroseas Ltd. was formed on May 5, 2005 under
the laws of the Republic of the Marshall Islands to consolidate the
ship owning interests of the Pittas family of Athens, Greece, which
has been in the shipping business over the past 136 years. Euroseas
trades on the NASDAQ Global Select Market under the ticker ESEA since
January 31, 2007.  
Euroseas operates in the dry cargo, drybulk and container shipping
markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO
9001:2008 certified affiliated ship management company, which is
responsible for the day-to-day commercial and technical management
and operations of the vessels. Euroseas employs its vessels on spot
and period charters and through pool arrangements.  
The Company has a fleet of 14 vessels, including 3 Panamax drybulk
carriers and 1 Handymax drybulk carrier, 3 Intermediate
containership, 5 Handysize containerships and 2 Feeder
containerships. Euroseas` 4 drybulk carriers have a total cargo
capacity of 262,074 dwt, its 10 containerships have a cargo capacity
of 17,587 teu. 
Forward Looking Statement
 This press release contains
forward-looking statements (as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended) concerning future events and the
Company's growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further time
charters. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and
similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been
correct. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that are inherently
subject to significant uncertainties and contingencies, many of which
are beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to changes in the demand for
dry bulk vessels and container ships, competitive factors in the
market in which the Company operates; risks associated with
operations outside the United States; and other factors listed from
time to time in the Company's filings with the Securities and
Exchange Commission. The Company expressly disclaims any obligations
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in
the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is based. 
Visit our website www.euroseas.gr 
Company Contact
Tasos Aslidis
Chief Financial Officer
Euroseas Ltd.
11 Canterbury Lane,
Watchung, NJ 07069
Tel. (908) 301-9091
E-mail: aha@euroseas.gr 
Investor Relations / Financial Media
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: euroseas@capitallink.com 
 
 
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