Thank you for standing by ladies and gentlemen, and welcome to the Euroseas Conference Call on the Second Quarter 2013 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasios 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 the conference is being recorded today, Tuesday, August 13, 2013. Please be reminded that the company announced their results last night after the market closed in New York 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 2 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 moment to go through the whole statement and read it. I would now like to pass the floor to Mr. Aristides Pittas, Chairman and Chief Executive Officer of Euroseas. Please go ahead, sir.

Good morning and thank you for joining Euroseas for our conference call today. Together with me is Anastasios Aslidis, our CFO. The purpose of today’s call is to discuss the financial results for the three and six month period ended June 30, 2013. Let us turn to slide three for our second quarter and first half ended June 30, 2013 financial results overview. For the second quarter of 2013, we reported total net revenues of $9.6 million. The net loss for the period was $8.9 million or $0.20 loss per share basic and diluted. The results for the second quarter of 2013 include a $0.4 million unrealized gain on derivatives, a $0.4 million realized loss on derivatives, and $3.2 million loss on sale of a vessel. Excluding the effect on the loss for the quarter of the unrealized gains the realized loss and the loss from the sale of a vessel, the adjusted net loss per share for the quarter would have been $5.7 million or $0.12 loss per share basic and diluted. Adjusted EBITDA for the second quarter of 2013 was minus $1.0 million. We declared a quarterly dividend of $0.015 per share for the second quarter of 2013, payable on or about September 11, 2013 to shareholders of record on August 31st. This is the 32nd consecutive quarterly dividend declared. Our balance sheet currently remains strong with about $34 million of cash and the debt-to-market value of the fleet ratio of about 20% to 25%. For the first half of 2013, we reported total net revenues of $20.5 million. The net loss for the period was $13.5 million of $0.30 loss per share basic and diluted. The results for the first half of 2013 include the $0.9 million unrealized gain on derivatives, a $0.9 million realized loss on…

Thank you very much, Aristides. Good morning, ladies and gentlemen from me as well. I will now provide you with a brief overview of our financial results for the three and six months period ended June 30, 2013. For that, let’s move to slide 20, and start with our second quarter 2013 results in comparison to the same period of 2012. I will go over here some of the same figures which Aristides gave you in the beginning of the presentation. Specifically for the second quarter of 2013, we reported total net revenues of $9.6 million representing a 25% decrease of a total net revenues of $12.8 million during the second quarter of 2012. We reported net loss for the period of $8.9 million as compared to net loss of $1.4 million for the second quarter of last year. The results for the second quarter of 2013 include a $0.4 million unrealized gain on derivatives, a $0.4 million realized loss on derivatives, and $3.2 million loss on the sale of a vessel as compared to $0.3 million realized gain and $0.4 million realized loss on derivatives for the same period of 2012. Excluding the effect on the loss of a quarter of the unrealized gain on derivatives, the realized loss on derivatives and the loss on the sale of the vessel, the adjusted net loss per share for the quarter ended June 30, 2013 would have been $5.7 million or $0.12 net loss per share basic and diluted compared to a net loss of $1.3 million or $0.4 per share basic and diluted for the same period, same quarter of last year. Our adjusted EBITDA for the second quarter of 2013 was negative one million compared to $3.4 million achieved during the same quarter of 2012. As Aristides has mentioned…

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

(Operator Instructions) You have a question from Wells Fargo from Michael Webber. Please ask your question sir. Michael Webber – Wells Fargo Securities : Hi, good morning guys, how are you?

Hi, Mike, how are you? Michael Webber – Wells Fargo Securities : Good. I just I want to talk a little bit about the drybulk market to start off with. You guys obviously have been pretty active replacing some of your older tonnage with newer assets for the last several years, but it looks like year-to-date we've seen a bump in – definitely a bump in new build values, and but also an uptick in second hand prices as well though we haven't really seen the corresponding move in long-term charter rates which is a bit worrying that that asset outside is being driven mostly by speculation more than anything else. They could play out or could not. I just well kind of want to know your take and I know you kind of touched on it different points in your prepared remarks just on the year-to-date movement and kind of an improvement and optimism around the drybulk space and whether this degree of assets outside is really warranted yet or whether you’d be more comfortable once we see an actual improvement in kind of operator’s expectation via long - term employment

Yes. I have been surprised a bit by the recovery in the charter rate that we showed you in the summer. I mean the summer is traditionally a slow period, a very slow period and we've seen of course mainly for capesize vessels we've seen a very significant improvement in the market. And in the beginning of the year we all thought that the cape market would be very subdued, there were many ships coming in, the economy wasn't doing that well. We felt that those ships would not be absorbed and we would have a very poor market. This was proven not to be the case despite the big number of ships that have come in, charter rates are improving in the capesize sector. The Supramax sector has remained strong relatively strong throughout the year; all the ships always find their employment relatively easily. And it’s only been the Panamax that has been weak and flat at times but when the grain season is strong you see the market improving rapidly. So, overall we see that the market and the demand is quite strong, stronger than we thought it would be and is absorbing the huge number of deliveries. And certainly for 2014, and the bigger part of 2015, we know that the number of ships that will be delivered will not be huge. So, we do expect the next 18 to 24 months will be better than where they are right now and I think this is what the market is seeing and deciding let's go out and buy ships now, they are anyway at the lowest price they could be let's go out and buy. I think that we would probably see a recovery in the rates within the next 18 months or so. Michael Webber – Wells Fargo Securities : Right, okay so there is a movement in net values, you are comfortable with that movement still buying in the market because we are near cyclical lows still and you do expect that long term employment that three and five year contract rates to start inching up to kind of justify the [multi asset][ph] values

That's what we think. That's what we think. I mean of course values cannot go too much higher because we don't expect the recoveries to the levels we saw during the super cycles right. There is capacity to build ships, and ships are going to be built and really the question mark to us is what happens in 2016 depending on how much new orders have been placed. But for 2014 and 2015, we feel that as long as the global economy does as the analysts are suggesting is going to do, i.e. a little bit better, we should see a little bit better charter rates as well. Michael Webber – Wells Fargo Securities : Right. And Aristides you mentioned in your prepared remarks too that you are starting to delivery windows for dry out in the 2015 and towards the end of 2015, but when you look at the nominal or whatever numbers I mean we've got only about 30% and kind of on a order relatively to kind of peak global production year I think it was early 2012 actually, so it seems like there is certainly a lot of surplus shipyard capacity kind of on the sideline so that long delivery window is a bit striking when you actually look at the fact that they are on a [inaudible] percent year-over-year there’s not that much still on order. So I guess the idea being that your only saying it's kind of selective slots being marketed by the shipyard. In your experience when you look at kind of the supply dynamic over the next two to three years and the idea that some will replace the dry bulk order for 2015, how close are we to a tipping point where we start seeing some of these Chinese yards start marketing some of the slots they’ve held back to prop up prices or we started seeing some of that surplus yard capacity come online because it’s certainly been there in the past. Just how you think about that?

Yeah I think that the possibility of some of the second tier Chinese yards returning into the markets, it is not really there yet. I mean we all believe that the shipyards are not really making huge profits at this time at the prices in which ships are being built. Definitely the fact that we see prices of ships increasing by I would say another 10% during the year indicates that the yards are being able to fill the immediate positions and have filled their immediate positions so they can push for some increases. But in order to see second tier shipyard start building ships again and attract interest I think we need to see a further push in new built prices which I’m not 100% sure that we will see. It really depends on the appetite of owners to put new orders on. But really genuinely you know we have been talking to yards and we feel that to get anything delivered within 2015 you’re going to be need to be paying a premium to wait into 2016. And I don’t think there is too much appetite to do that. Michael Webber – Wells Fargo Securities : Right basically it comes down to the margins that these yards and when they hit that kind of inflection point to at which point they will start opening up additional slots. And I mean I know this is a very difficult question to answer because it's not really the market you are guys are playing in right now. But how close do you think we are to that point maybe on a percentage basis maybe just kind of a best guess?

Yeah, Mike I think we are quite far, I mean the previous time when we saw China shipyards opening up, new yards opening up and all that stuff prices were much, much higher for ships. So I think we do need to see prices increase by at least another 10% to 15% before some more yards start becoming really attractive and marketing strongly. I think we're not there yet. Michael Webber – Wells Fargo Securities : Got you, all right. And just maybe just shift gears for a second and talk about containerships. I was looking at the slide you guys put together on page 18 just kind of showing Panamax and then current values if you look at the fleet within the JV I mean its pretty heavily weighted towards the intermediate term carriers versus the smaller handies which are going to be below 2000 teu. I am just curious in terms of making that kind of investment decisions intermediate versus handies, is there something driving that higher concentration intermediate term carriers or is that really just a function of what’s in the market and what you, what’s looked attractive today. And it did strikes me if you get below the 2000 teu range you might be more insulated from any sort of cascading and then you certainly do not have the order books that you’d see anywhere else and this charter carrier is the worst kind of an the biggest investment driver for that mix.

I think we have there’s really no crystal ball as to which size is going to do better. And we definitely believe that because cascading effect results in rates moving largely parallel for the various different sizes of ships. So I don’t think there is a huge, huge difference there. We would definitely avoid ships below 1000 teu because we think there is nowhere they can cascade to. But between 1000 and 3000 teu geared ships I think it is not very easy to make a guess obviously in the better markets the bigger ones will be doing better in the worse market the smaller ones is the smaller capital outlay and they probably on very similar amount about of money

Only add that I mean the gearing provide some protection to the cascading and the largest gearing ships are probably the safest segment to benefit from cascading down. And then be protected from the largest ship cascading going – Michael Webber – Wells Fargo Securities : Yeah, they are pretty similar that's the best we are getting pretty specific within different quite so just curious as they were something operationally that was may be driving a decision that we were speaking about. One more for me and I will turn it over and I will hop, but it's more kind of just macro question I mean we cover from under rival mains and very few if any are as healthy as you all are and you get from an operational perspective your cost are well inside the rest of the group despite an older fleet, if you look around and some of these ships just rest fleets now, is there any interest in potentially stepping up and doing something on the larger side from M&A perspective and may be kind of coming to better you way could actually answer but do you guys get approached around operating and kind of coming into take over larger fleets given the fact you have got strong financial partners, you got a great operational background and you have certainly have a platform to come in and more effectively run some of these fleet, I am just curious whether that's on your radar or not or if it has been and it's not now and why?

This is something that we have looked at in the past but to be very honest we've been disillusioned to an extent because there is great reluctance from most of these companies which are relatively small but have very poor balance sheet to try and do something in conjunction with others. So something that we have had some discussion in the past with the few people. Nobody wanted to do that. Most of these people are facing very difficult situations right now but still they are not willing to come to discuss.

And also the point of the banks as long as this trade is market driven there is nothing wrong with the management of the company or with the structure. I mean there is an great incentive for the banks to force merger or change Michael Webber – Wells Fargo Securities : Right. I guess that's the angle I was coming was the bank coming to you all and taking a couple of statistics specifically that I won't mention specifically but were there is a rationale for coming in and having you operators and then finding some of us able to generate outside returns with those assets so, coming out more are you guys being approached by banks basically but -

It is clearly sometimes we believe in our strength and if a situation emerges we can definitely add value by managing larger company

We have had some discussion with the KG related companies in Germany on the container side but nothing really to report on. Michael Webber – Wells Fargo Securities : Okay, all right. Well, I have been up lot for the Q&A, I will hop off and thank you guys for the time. I appreciate it.

Thank you very much, Mike.

(Operator Instructions) There are no further questions. We now pass the floor back to Mr. Aristides Pittas for closing remarks.

Well, thank you all for listening into today's some of holiday period results. But we will be review in three months' time and we will take you through our third quarter results then.

Have a nice day everybody

And with management's (inaudible) speakers, that does conclude our conference. Thank you for participating. You may now disconnect.