Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Fourth Quarter 2021 Financial Results. We have with us 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 mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas 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 number two of the webcast presentation, which has the full forward-looking statement and the same statement was also included in the press release. Please take a minute to go through the whole statement and read it. And now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

Good morning ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the quarter ended and full year December 31, 2021. Let us turn to slide three. Our income statement highlights are shown here. The fourth quarter of 2021, was a seminal one for Euroseas, as we recorded the highest net income level in our history. For the fourth quarter of 2021, we reported total net revenues of $38.3 million and net income attributable to common shareholders of $22.7 million. Adjusted net income attributable to common shareholders for the period was $22.9 million, or $3.18 per share and $3.17 per share basic and diluted respectively. Adjusted EBITDA for the period stood at $26.1 million. For the full year of 2021, our net revenue was $93.9 million and net income attributable to common shareholders was $42.3 million. Adjusted net income attributable to common shareholders for the period was $42 million, or $6.02 and $6.01 per share basic and diluted respectively. Adjusted EBITDA for the period totaled at $52.7 million. Notably, net revenues for the quarter and full year, as well adjusted EBITDA were higher than the previous years by multiple measures of magnitude, as can be seen on the slide. Our CFO, Tasos Aslidis will go over financial highlights in more detail later on in the presentation. Please turn to slide four where we discuss our recent chartering and operational developments. Motor vessel, Marcos V was bought with the charter for approximately 36 to 42 months at $42,000 per day. The EM Astoria was fixed for a minimum period of about 36 to 38 months at $65,000 per day for the first year,…

Thank you very much Aristides. Good morning for me as well ladies and gentlemen. I will now take you through the next five slides of our presentation and give you an overview of our financial highlights for the fourth quarter and full year of 2021 and compare them with our results in the equivalent periods of 2020. For that let's turn to slide 16. For the fourth quarter of 2021, the company reported total net revenue of $38.3 million, representing a 218% increase over total net revenues of $12 million during the fourth quarter of 2020. The increase was predominantly due to the higher average Time Charter rates our vessels earned in the fourth quarter of last year compared to the corresponding period of 2020. For the fourth quarter of 2021 the company reported net income and net income applicable to common shareholders of $22.7 million as compared to a net income of $0.6 million and a net income attributable to common stakeholders of $0.4 million for the fourth quarter of 2020. Interest and other financing costs for the fourth quarter of 2021 amounted to about $0.78 million [ph] comparable to $0.8 million that we had for the same period of 2020, during which though we also recorded a loss on extinguishment of debt of about $0.5 million. Adjusted EBITDA for the fourth quarter of 2021 was $26.1 million compared to $2.1 million for a corresponding period of 2020, reflecting a 132% increase over the previous periods. Basic earnings per share attributable to common shareholders for the fourth quarter of 2021 were 3.15, while diluted earnings per share were $3.13 calculated respectively on $7.21 million and $7.24 million basic and diluted weighted average number of sharees outstanding compared to basic diluted earnings per share of $0.07 for the fourth quarter…

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

Thank you. We will now begin the question and answer session. [Operator Instructions] We will now take our first question. Please go ahead. Your line is now open.

Well, good day. This is Tate Sullivan from Maxim Group. I'm just starting -- just a couple follow-up questions with your comments about the order book currently still being composed of much larger vessels for 2023, particularly for entrance into the market in 2023. Can you remind us of the benefit of the operating smaller ships in your fleet and taking delivery of smaller ships? And maybe even comment on the future composition of the containership, please?

Obviously, there is always a cascading effect when you have containerships. They all carry the same kind of cargo, which is containerships. But the smaller vessels can go into smaller ports where the bigger ones cannot. And the bigger ones tend to go from into the bigger ports where they discharge the cargo there and from there smaller ships pick up the cargo and take it small -- smaller distances towards other smaller ports. So all type of vessels are needed. The big ordering is happening on the big vessels. The ones that do the TransAtlantic and TransPacific tradings mainly. So you realize that we also need ships that are smaller and not a lot of are being built of that -- of those smaller ships. And the ones that exist are also the elder vessels around. So we think this is kind of a relatively niche market to be in and we're traditionally focused on that market.

Thank you. And with, I mean most of your capacity spoken for this year, most of your days contracted days with, I mean, look, is there any chance newbuild, additional newbuild capacity or ship capacity opens to build you new ships in the next two years or is really today the earliest deliveries still for multiple years if you do decide to build above and beyond the four newbuilds you have on order?

We are considering the possibility to build new vessels as well. We're still looking at that possibility. The shipyards are quite full with new orders though. So you cannot get them with prompt deliveries these days, which is a drawback, but we will see.

Okay. Thank you. And just on a topic we talked about before just targeted debt ratios going through this cycle. And if there is eventually a slow down is it, I mean, the capital ratio using net asset value do you look at 30% level or 40% level of debt to capital ratios. How do you look at that over the cycle?

Yes. I mean we look at -- Tasos?

No, no. I was about to show you. I believe the same thing as you were start -- you saying that, we have a current leverage ratio for just around 25% using charter adjusted values. We intend to finance our newbuildings around 60% to 65% of their contract value. So even with the newbuildings finance, our leverage ratio will not be -- will be below around 35%. So, it's a moderate leverage ratio reflective of the point in the cycle we are even if there is a movement, downward movement of the cycle will remain very low levels that we're quite comfortable to serve throughout the cycle.

Tank you. And last for me just following up the newbuild comment if you did order a ship today just in terms of the update, I know it can vary. if its 2000, middle 2024 delivery at this point?

Around that update, yes.

Okay. Okay. Thank you both. Have a great rest of the day.

Thank you.

We will now take our next question. Please go ahead. Your line is now open.

Hi. This is Poe Fratt from Noble Capital Markets. Good afternoon to both of you. Just to follow up on the newbuild question. It looks like between the time that you ordered the first two and then move forward on the second two, I was a little bit surprised that you were able to minimize the price increases. It would -- the price only went up for the newbuilds about 15%. And can you just talk about whether you had options for the second two newbuilds or whether these were just new negotiations with the shipyard and you were able to minimize the cost increases?

They were new negotiations, Poe. They were new negotiations. We didn't, we weren't able to get options. The ship charts are very difficult to give options these days unfortunately, because they know that there is -- it's tight to order newbuild vessels. There's quite a lot of inquiry. Not too many shipyards around to build ships, so they have a bargaining power these days. The reason is that the price increase was not that high is that the delivery time is quite some time out, right? The deliveries are towards the end of 2023 and beginning of 2024. While the first two vessels have deliveries at the beginning of 2023 first and second quarter 2023. So it's not only that the price is more expensive, not too much luckily, but it's also six months later deliveries as well.

Yes. But that's measure with the time between when you ordered the first and second, isn't it?

True. It is. But if we were able to get an early delivery, it would be -- have been much more expensive.

Okay, understood. And so, when you're looking at, I think you talked about the earliest to get another two potentially newbuilds out there. Would you be looking at a like increase in costs, say, closer to a $100 million for two instead of $86 million or sort of have you ever gone --.

I don't want to speculate too much when the discussions might be going on. But if there is something to announce we'll definitely announce it. But I leave it that right now, Poe.

Okay. I appreciate that. Could you talk about -- I think in your last webcast or webinar, I thought I heard or maybe it was on the last quarterly conference call, I thought I heard that there was interest in the first two newbuilds as far as putting them under time charters. Can you update us on any potential time charters that you might have secured or in the potential or process of securing on the [Indiscernible]?

Be sure that if there is something to be announced there will be a press release announcing it. So there is nothing announceable at this point in time. People are showing some interest in fixing, but still, we are not actively marketing the ships for charter. We think it's something that might happen within the next few months, but we're not actively marketing them yet.

Okay, great. And then, could you talk about the -- as somebody mentioned you just don't have that much availability this year as far as new time charters. But could you talk about the open days that you have either on the Akinada Bridge or the, now I forget, what the second one is, it's closer. Is there any change in the market that would lead us to believe that you wouldn't be able to get similar terms as far as time charter length and rates on those two open vessels?

The context index just came out today as it comes twice a week. All constituents were green again, which means, they were all up again a little bit. So the market continues to strengthen. So we think that the more we wait the higher we can probably still fix. I don't know if this will continue forever. It can't obviously, but it continues. So we'll see.

And would you be looking for more length Euroseas or given the current forward cover you have, would you be more inclined to play more the short term and keep some of those open or exposed to the spot market?

No. It will depend on what interest we see from our clients. We are happy with the levels that we are seeing for long periods as well. So if we see for the small years we might do the three years for the [Indiscernible]. For the bigger vessel we would do anything from three to five years, if the rate for a single year was fantastic, we could consider that as well. We will see. We will see.

Yep. Stay tuned. And then can we just walk through sort of your philosophy on potentially doing either stock buybacks or dividends, whether it's a special dividend or regular dividend. If I do the math on the next two years 2022 and 2023, I come to the conclusion that you, from an operating cash flow standpoint you'll generate more than $250 million based on what the current market and current forward cover is. And you have from a cash perspective about $65 million of CapEx on the newbuild program assuming that you're going to finance 60% the final delivery payments on the newbuilds. And so, you'll generate a significant amount of excess cash if you will. And unless you make additional acquisitions, can you just talk about what potential plans you might have for assessing what you do with the excess cash?

Yes. As you have seen our first priority has continued to be -- to use the liquidity that we generate to grow the company and to renew the fleet and position the company to be an even more significant player within the segment that we are active. So this is the top priority, if we can find projects that make sense. So this is the most interesting thing for us. If we run out of investment ideas then we might consider returning capital to shareholders. However, up to now we've been able to find good opportunities to invest. And I think that every investment that we've done up to now already appears that it has been a good investment and is an investment which is returning significant additional value to the shareholders. So, up to now, we've been able to find good investments. I hope we will continue to be able to do that. If we feel that we can't do it, then obviously we will have to do something with the liquidity that we will be making that will benefit our shareholders. As I've said repeatedly. Our family is one of the major shareholders within the company and our priorities to optimize the results.

Okay, great. And if I could just ask one last question about just the cadence of the capital that you're going to spend on the newbuilds. You have $7.6 million so far the deposits on the first two newbuilds. I still assume there'll be 10% deposits on the second two newbuilds this coming quarter maybe the second quarter. Can you -- my math brings me to about $34 million of CapEx in 2022 for the newbuilds. And then about $98 million in the -- for the new builds in 2023? Are those numbers in the ballpark or can you give us an idea of how much CapEx you'll have for the newbuild program in 2022 and 2023?

I think those numbers are in the ballpark. I would expect that we will make about six installments for the first two newbuilds by the end of the year. We have made two and we'll make another four I guess. And then, we'll pay the remaining delivery, 70% delivery And we'll start making installments for the for the newbuildings. I would imagine that we'll do one, obviously, the first 10%, we have done that. And I think the rest one, the rest of them will be in 2023.

Okay, great. Thank you so much.

Yep. And the last one. And the fourth one will be in 2024, the 70% of the fourth one.

Yes. That applet in the first quarter of 2024. Okay, great. Thank you Tasos.

Okay.

Thank you, Poe.

Okay, guys.

We have no further questions at this time.

Okay. Thank you very much for being with us during this call. And we look forward to talking to you in the three months time. Thank you.

Thank you everybody.

That concludes the conference for today. Thank you for participating. You may all disconnect,