Thank you for standing by, ladies and gentlemen. And welcome to the EuroDry Conference Call on the Third Quarter 2022 Financial Results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only note. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with the press release that has been publicly distributed. Before passing the call to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to Slide 2 of the webcast presentation, which has a full forward-looking statement, and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. And I would now like to pass the floor over to Mr. Pittas. Thank you, sir. Please go ahead.

Hello, ladies and gentlemen, good morning, and thank you for joining us for the scheduled conference call. I have with me Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the third quarter and 9-month period ended September 30, 2022. Please turn to Slide 3. Our income statement highlights are shown here. For the third quarter of 2022, we reported total net revenues of $15.8 million and a net income of $6.2 million or $2.10 per diluted share. Adjusted net income attributable to common shareholders was $5.7 million or $1.93 per diluted share. Adjusted EBITDA for the period was $9.5 million. As of November 10, 2022, we had repurchased 108,963 of our common shares in the open market for about $1.5 million under our share repurchase plan of up to $10 million announced in August. Our CFO, Tasos Aslidis, will go over our financial highlights in more detail later on in the presentation. Please turn to Slide 4 for our operational highlights. Motor Vessel Pantelis was sold for $9.675 million and delivered to the new owners and an affiliated third party on October 17, 2022. On the chartering front, we continued renewing all 8 of our vessels, which came open for single trips, thus practically keeping our exposure to the spot market. You can see the specifics of the various charters in the accompanying presentation. We have 2 vessels that are fixed on longer, but index-based charters. So practically only one vessel, which is on an agreed longer-term time charter that rate till the end of Q1 23. The [indiscernible] of our fleet in Q3 '22 was $20,600 per day approximately. Regarding dry docks and repairs, we had 3 vessels, Motor Vessel Alexandros P, Eirini P, and Tasos, which were in…

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next 4 slides, I will give you an overview of our financial highlights for the third quarter and 9-month period ended September 30, 2022, and compare the results to the same periods of last year. With that, let's turn to Slide 15. For the third quarter of 2022, the company reported total net revenues of $15.8 million, representing an 18.8% decrease from total net revenues of $19.5 million during the third quarter of last year, and that was primarily the result of the lower time charter rates or vessels earned in the third quarter of this year compared to last. And also of the increased schedule of hires during the third quarter, during which our vessels not earning revenue, and that's despite the larger number of vessels we operate. The company reported net income and net income attributable to common shareholders for the period of $6.2 million as compared to a net income of $12.1 million and net income attributable to common shareholders of $11.8 million for the same period of 2021. Interest and other financing costs, including interest income for the third quarter of this year amounted to approximately $1 million compared to $0.6 million for the same period of 2021, the increase being due to higher levels of debt and higher LIBOR days that we have paid. Adjusted EBITDA for the third quarter of 2022 was $9.5 million compared to $13 million achieved during the third quarter of last year. Basic and diluted earnings per share attributable to common shareholders accounted - for the third quarter of 2022 were $2.1 basic and $2.10 diluted, calculated on about 2.9 million basic diluted weighted average number of shares outstanding compared to $4.47 basic and…

Thank you, Tasos. Let me open up the floor to any questions that we may have.

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Thank you. Our first question is from Tate Sullivan with Maxim. Please proceed with your question.

Okay, thank you. Good day. Tasos, to start, you mentioned - I think I heard correctly, $35 million EBITDA for the upcoming 12-month period with the 13,558 breakeven. But what was the assumed time charter equivalent rate you used? Was it the 1-year contract today of around 14,500 can you repeat that, please?

Tate, that was just an indicative calculation to - because our EBITDA breakeven was $7,564, I assume a net to just demonstrate the calculation - I assumed a net time charter revenues of 17,564. So the difference to be around 10,000. That was only an assumption, you should make your own assumption about the rate for the next 12 months. But if the rate was up, the EBITDA books have been $35 million.

Okay. Thank you. And then strategically, I mean, the increase in debt from 2Q to 3Q, can you talk about the decision to add debt by roughly $15 million or $16 million?

So we had two encumbered vessels and we thought that it was a good idea to put a conservative 50% debt on them, so as to have the liquidity to be able to use it, firstly for our share repurchase program, but also to be able to move quickly at some point if we want to make a new acquisition. It feels good to have the cash in the bank.

Okay, thank you. And then Tasos gave detail on the rising rate going forward, and we can make our own calculations on that, too. And then also on the sources of support for the market, I mean is the primary source of support if rates have some more pressure, the lack of - or relatively low historical relative of newbuilds coming into the market or any other sources of demand we should - or potential sources there out that we should keep an eye out for, please?

I think what we need to do is to keep an eye open to the geopolitical and economical developments. Demand depends a lot on global GDP growth, and this is really what we should be trying to understand what it will be. And of course, this is a very difficult task.

Absolutely. Okay. Thank you, both.

Thank you, Tate.

Thank you. Our next question is from Poe Fratt with Alliance Global Partners. Please proceed with your question.

Good morning, Aristides. Good morning, Tasos. I have a question more on the financing side. You have $11.3 million of debt that's due next year, that is potentially going to be refi. Can you give me an idea of what you're expecting as far as the refi rate? And conversely, since you did encumbered refinance or encumber some of the vessels in the third quarter, would we expect to, if the rates are too high to pay that debt down with cash and wait for a better financing environment?

I think we figured that we would like to have some liquidity on our balance sheet for the reasons that Aristides Pittas explained earlier. So that's why we took a relatively cheap, I think the margin on the debt that we got was near 2%. So it was relatively, actually a little less than 2%. So it was a relatively cheap debt, of course, LIBOR costs are higher. So gaining something on the margin to get reversed by the increase in LIBOR. But in any case, having the extra liquidity in our balance sheet gives us flexibility to pursue the repurchase program and also be ready to pull the trigger, as people say, in case opportunities come around.

Also - okay, the cost of the debt because LIBOR is increasing, is higher. But on the other hand, you now do get some interest on your deposits. So the overall cost of having these three liquidity is actually very small.

It's basically the margin, which is not in that particular case, it was of the lowest we have achieved recently. So regarding the balloon that you mentioned, that is due sometime in the second quarter of next year. We will decide closer to that date, whether we will just repay to – or refinance it. If we have - we consider ourselves like enough to have the flexibility to make that decision and not be forced to refinance.

Yes, that's what I sort of alluding to. And then you - if you pull the trigger on some new assets, that means that asset values have come down. Just to reiterate on the stock buyback program, can you walk us through some of the math that you're looking at on the current stock price at 15%, that would imply that asset values are below the median average that you show in your presentation probably to the tune of about 20%. So am I - should I be looking at - even if the asset values go down to the median level that you're still buying your stock currently at a discount to the long-term asset values?

Yeah, clearly positive. Right now, the best investment for us is to buy back our stock that is trading significantly below NAV. And that's why we are doing it because compared to buying a vessel within a lease that is 75% discounted or whatever is the gap. And if the market becomes weaker, then opportunities might appear. Also, we just sold one RL vessel. And it was always in our mind. It is in our mind to renew our fleet. So swapping new vessels for older, that is part of our strategy.

And with rates lower, are you seeing any customers think about locking in trying to lock in or approach you with more longer term commitments, not to say that you would agree to longer term commitments at these levels, but are customers starting to think about that?

Not really. We don't see any significant pressure from the market to get long-term charges at today's rate. I think that the fact that it's so difficult to predict what will happen makes everybody more conservative and not willing to take longer exposure.

Okay. Great. Thanks for your time.

Thank you, Poe.

Thank you, Poe.

[Operator Instructions]

I presume there's no more questions.

There are no more questions at this time. I'd like to turn it back to management for any closing comments.

Thank you all for being with us for our call this quarter. We will be back with you early next year to discuss how the whole year faired. Thank you.

Thanks, everybody. Thanksgiving to our American friends.\

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.