Thank you for standing by ladies and gentlemen and welcome to the Euroseas Conference Call on the Third Quarter 2019 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Anastasios 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. And 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 and 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 moment to go through the whole statement and read it. I would now 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 Anastasios Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three months period ended September 30, 2019. As a reminder, I would like to mention that on May 30, 2018, the company spun-off its drybulk fleet, into EuroDry, a separate publicly listed company also listed on the NASDAQ Capital Markets. Shareholders of Euroseas received one EuroDry share for every five shares of Euroseas they held. As a result of the spin-off Euroseas has become a pure containership company and the only publicly listed company concentrating on the feeder intermediate containership sector. The results below refer to Euroseas Ltd. continuing operations, excluding the contribution of vessels spun-off into EuroDry Ltd., in May 2018. The historical comparative periods have been adjusted accordingly. Now please turn to slide three to see our income statement highlights. For the third quarter of 2019 total net revenues were $10.3 million. Net loss was $0.2 million, adjusted net loss attributable to common shareholders was $0.5 million or $0.02 loss per share basic and diluted after a $0.2 million dividend on Series B Preferred Shares and a $0.1 million paper loss due to the below market charters of the four vessels acquired during the quarter. Adjusted EBITDA was $1.6 million. Please turn to slide four, for our chartering and operational highlights. The highlight of the quarter was the delivery of the previously announced four vessels agreed to be acquired in Q4. Specifically, we took delivery between the 2nd and 7th of August of the following ships. And I note here that there is a small [add] up in representation noting all ships has been of the same…

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. I will take the next four slides to give you an overview of our financial results for the three and nine months period ended September 30, 2019. The figures that we review refer to the continuing operations of Euroseas, that is we stripped out from the comparative periods of 2018, the contribution of vessels that were spun-off in May 2019 in EuroDry. Let's look at slide 16. For the third quarter of 2019, we reported total net revenues of $10.3 million, representing 23% increase over total net revenues of $8.3 million during the third quarter of last year. We reported net loss for the period of $0.2 million and a net loss attributable to common shareholders of $0.3 million as compared to a net loss of $0.9 million, a net loss attributable to common shareholders of $1.1 million for the third quarter of 2018. The results for the third quarter of 2019 include $0.2 million amortization of below market time charter supplies. Adjusted EBITDA for the third quarter of this year was $1.6 million, compared to $0.6 million during the third quarter of 2018. Basic and diluted loss per share attributable to common shareholders for the third quarter 2019 was $0.01 calculated on 26.7 approximately million shares basic and diluted compared to basic and diluted loss per share of $0.10 for the third quarter of 2018. Excluding the effect on the loss attributable to common shareholders of the amortization of below market time charter supply and the unrealized gain on derivatives, the adjusted loss attributable to common shareholders for the quarter ended September 30 2019, which have been $0.02 per share basic and diluted compared to $0.10 per share loss basic and diluted for the same…

Thank you, Anastasios. I would like to now open up the floor for any questions that anybody may have.

Thank you. [Operator Instructions] Our first question comes from the line of Tate Sullivan from Maxim Group. Please go ahead.

Hello, good morning. Thank you, Tate Sullivan from Maxim. Can you -- thank you for the comments about amortization of below market value time charters. Just real quick is that within operating expenses in the income statement or where is that? And does that -- is that in your forecast for OpEx of about $5,800 per day?

The revenues includes a higher number of income because of the adjustment that we do for the below market value of time charters and that is reported on the net income line. When we do the adjusted net income, we subtract the corresponding amount that was added on the top line.

Okay. And the $5,800 OpEx per day, are there costs at the beginning of acquiring ships that you may be able to decrease or what are their upfront costs after an acquisition, please?

The operating costs are dependent only on the vessels -- on the specific vessel they will not change because of the size of the fleet. The G&A expenses would likely decrease because they're going to be divided by a larger number of ships.

But usually when we buy dates [ph] when we buy a ship, usually we incur a little bit slightly operating expenses than what we incur after some period of time. In the later acquisition that we did, I feel that this will not be the case because the ships were very well maintained. So I don't think that neither for the four panamaxes that we recently bought nor from the four vessels we previously bought because we have running them ourselves you will see any difference in OpEx. OpEx increases 2% to 3% historically every year because of inflation or things like that.

Okay, thank you, and last for me. With a full year of operating your acquired vessels after last week's deal, do you target specific leverage ratios or how are you looking at that please?

Yes, we think that our current leverage which is around what Tasios, 65%, 60% to 65%.

Yes 65% on market values, yes.

Which is about 65% of market values is a number which is I would say on the high side. I think we will be able to reduce that leverage to something between 50% and 60% that is our longer term target.

Great. Thank you for that. Have a good rest of the day.

Thank you.

Thank you, Tate.

Thank you and our next question comes from Poe Fratt from Noble Capital Markets.

Hi, Poe. Hello?

I apologize. I was on mute. Good morning, Poe Fratt from Noble Capital Markets. I had a quick question on just you mentioned in the press release, you had unexpected spare parts maintenance costs in the third quarter relative to third quarter of 2018. Can you quantify that? Is that material or is that just something that -- it's just unexpected, but it wasn't a meaningful amount?

I think it was not in a material amount. I think the reference was made to the higher OpEx that we might get because of the expansion of the fleet and some additional drydockings that we had compared to the previous period.

And the cost of the drydocking for the fourth quarter, can you quantify that Tasios?

For the fourth quarter, the main drydock costs, would be the costs of the drydock of Akinada Bridge. The vessel that ends the drydock in Q3 and is expected to exit by the end of the month. I expect the additional drydock that you will see will be close to between $1.5 million and $1.8 million and we are also on the vessel installing a water ballast treatment plant that expense is capitalized.

Okay, great. And then Tasios, can you give a little more detail on the $32 million bank debt that you -- that helps you finance the synergy acquisition. I'm looking at the balloon that's due in 2023. I look at annual amortization is that -- I'm calculating roughly $3.65 million per year on that loan. And…

Yes, the difference of the dark green from the dark blue bars is exactly the amortization of the $32 million loan. I think for the first year is about $5 million, the difference. And then I think it's about $3.5 million going forward the amortization of the new loan along with a balloon of $17.4 million in 2023. You can see this on slide -- page 18.

Yes, I was just looking for sort of -- so it's not straight line amortization. It's actually which you said $5 million over the first…

You're correct the first three quarters, the three payments are a bit higher than the remaining payments. So it's almost straight-line, but the first year is a little more.

Okay, great. And then, Aristides, could you talk about the additional consolidation opportunities that you see out there. And maybe start with now that you have 2019 sort of what your market share how you sort of look at consolidation is it market share basis the total -- it's capacity or just number units and just sort of help us shape sort of what we should expect going forward?

Well, Poe, there is nothing that we are actually working on right now. So there is nothing imminent. But obviously the intention is to continue with the same zeal to try to find the opportunities to make this company an even bigger company. I am very well cognizant that in shipping after you have a certain size, you don't have fantastic economies of scale if you grow bigger. So you have to grow bigger, only when it makes sense and the assets are worth buying and will help grow the company. So I've never been a fan of the consolidation for the sake of consolidation. We will try and find more partners. Because for a listed entity, it makes sense to be bigger and that's where you see the biggest gains that you can make. So we will try to do that, but we will try and do that in the same way as we did these two current investments, which are buying by getting ships in and offering the owners shares in the company at the right price, which is close to the NAV and value of the vessels -- of the company.

Great. And Tasios looking at just your shares outstanding, it looks like 44.5 million is what we should be using for roughly for 2020.

That's very correct.

Great. So thanks for your help, and congratulations on the recent acquisitions.

Thank you, Poe.

Thank you. There are no further questions at this time, I would now like to hand the floor back to Mr. Pittas.

Okay, thank you everybody for participating in this call, which was the last one of the year. We will meet you again in February with our end of year results. Thanks a lot.

Thanks, everybody, have a nice day, and Happy Thanksgiving to all.

Thank you. That does conclude our conference for today. Thanks for participating. You may now disconnect.