Thank you for standing by ladies and gentlemen, and welcome to the Euroseas' Conference Call on the First Quarter 2020 Financial Results. We have with us today, Mr. Pittas, Chairman and Chief Executive Officer; and Mr. 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, Wednesday, May 27, 2020. Please be reminded that the company announced it's 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. Statements in today's conference call, that are not historical facts included among other things, the expected financial performance of Euroseas business, Euroseas ability to pursue growth opportunities, Euroseas expectations or objectives regarding future and markets current expectations, and in particular, the effects of COVID-19 on the financial condition and operations of Euroseas, and the container industry in general, may be forward-looking statements, as such as defined in Section 21A of the Securities Exchange Act of 1934, as amended. Matters discussed maybe 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 the full forward-looking statements, 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, 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 March 31, 2020. Let's now turn to Slide 3 to see our income statement highlights. For the first quarter, total net revenues were $15.4 million. Net income was $2 million, and net income attributable to common shareholders after $160,000 dividend and Series B preferred shares was $1.8 million or $0.32 gain of share, basic and diluted. Adjusted net income attributable to common shareholders for the period was $1 million or $0.17 per share, basic and diluted. Adjusted EBITDA was $4.1 million. [Technical Difficulty]. Please turn to Slide 4 for details of some of our recent developments. During the second half of 2019, the company acquired eight vessels in total with an average age of 12.5 years, and total capacity of 25,600 teu, thus increasing the fleet by more than 70% in number of vessels, and more than 100% in terms of total teu capacity. In addition to the various routine operations, there were two noteworthy events related to our fleet [ph] so far in 2020. First, we sold the motor vessel Manolis P for scrap, with targeted delivery period in the first half of April 2020. Unfortunately, the sale was not completed due to the closure of the scrapyards related to COVID-19 lockdowns. We are in dispute with the buyers over the sale, which is being dealt through arbitration in London. The vessel will however be sold for scrap when the scrap jobs reopen, probably to a new buyer. Secondly, as already reported in January 2020, the motor vessel EM Oinousses suffered an engine room…

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 first quarter of 2020, and compare then with the same periods of 2019. So with that, let's look first at Slide 16. For the first quarter of 2020, the company reported total net revenues of $15.4 million representing an 85% increase over total net revenues of $8.3 million during the first quarter of last year. The main reason for this revenue increase was the number of vessels we operated in 2019 to 2020 or as compared to 11 in 2019. The company reported a net income for this period of $2 million and the net income attributable to common shareholders of $1.8 million, as compared to a net loss of $0.02 million and the net loss attributable to common shareholders of $0.49 million for the first quarter of 2019. The results for the first quarter of 2020 also include $0.8 million of amortization of below market time charters acquired. Depreciation expense for the first quarter of 2020 amounted to $1.7 million compared to $0.8 million for the same period of 2019 due to the increased number of vessels we operate. In the first quarter of 2000, none of our vessels underwent drydock while in the same period of last year, we had one vessel completing a special survey with a drydock with a cost of $0.7 million. In turn, another financial cost for the third quarter of 2020 amounted to $1.3 million compared to $0.7 million in the first quarter of 2019; this increased due to the increased amount of debt we shared in the current period, compared to last year, and despite the offset by the lower…

Yes. Anastasios, thank you. I am now opening the floor for any questions you may have.

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] We will now take our first question, Tate Sullivan from Maxim Group. Please go ahead, your line is now open.

Hello. Just the first question on the ship list -- the current term contracts for your fleet when you indicate in your ship list; and the reason for the question that set expectations for this current quarter and next, when you indicate for instance, the term contract -- current term contract ends in May, is it usually at the end of the month or certain areas and sometimes in the middle of the month, or beginning of the month for earlier term contracts?

It varies; it could be any time during the month. We try to be around thing s and we report the amount to ships [ph].

Okay. And then, your earlier comments on the scrapyards; can you give more background on where usually containerships may get scrapped? And are the yards in the process of opening or where are they in general? Or more background on the regional diversification of where they're closed and where -- where maybe they may be open faster, please?

Yes. I mean 90% of the ships that are scrapped, are scrapped in India, Pakistan and Bangladesh; these are the three areas where we have the biggest scrapping and the pay the most, you can scrap the ship in 30 or in few other places, but you get much less money for that. Both of our ships are positioned in the United Arabs location there, and therefore the most profitable places for them to be scrapped are either Pakistan or India. These countries have locked down the scrapyards for nearly -- for over a month now. And -- but there are discussions of these scrapyards opening up very soon. In fact, in Pakistan, they say that they can open -- that the yards are open; however, there is no way to repatriate your crew yet. So, practically you cannot sell a vessel for sale because you cannot take it for scrap, because we cannot take you through all [ph]. But we hope that things will improve within the next few weeks, couple of weeks, and the ships will be sold within this quarter, within Q2.

Okay. Thank you very much. Have a good rest of the day.

Thanks, Tate.

Your next question comes from Paul [ph] from Noble Capital Market. Please go ahead. Your line is now open.

Hi, good morning, Aristides. Good morning, Anastasios. Can you highlight on the -- whether there is going to be potentially an insurance recovery for the fire in the engine room? And then secondly, could you just highlight the scrap value that you're looking for? It looks like you've had a deposit on the Manolis P; was that $1.1 million? Can you just highlight any additional cash that you potentially are looking at with scrapping the Manolis P? And then also [indiscernible].

Yes. On the Manolis P, as you say correctly, we had $1.1 million deposit, which we now have put in an escrow account subject to the developments will be arbitration procedures. Scrap prices are being quoted 20%, 25% below where they were before the crisis, although this is somehow artificial because if you look at steel and scrap prices globally, they haven't dropped; they might even be increasing. But because of the scrapyards having been closed for so long, the scrap brokers are now asking paying a lower price; we will see how that will develop. The Manolis will be sold at a price of maybe anything between $300 and $380, let's say, dollars per ton, I would say, which is just a little bit less than what we had agreed previously. But let's say around $1.5 million -- around $2.5 million, maybe. And the Oinousses will be sold something like $3.5 million to $4 million I would probably estimate right now. And of course, we are going to get the fully covered from the insurance for all the damage that we suffer. So that cost will be recovered fully, minus 100% -- $100,000 of deductible mainly.

And would you be able to quantify the damage that was incurred on -- from the fire?

I wouldn't like to do that right now. This is a process; we are in with the insurance. But it really doesn't matter too much because what we recover is what we expensed.

Okay, great. It's so though covered. And then, Anastasios, can you just talk about the below market time charter amortization? And will we see that in the second quarter or for how long should we see that?

We should see in the second quarter too but at declining rates. I'll be happy to provide some information for you that relates primarily to the ship that we bought back in November, the game was some charter as well, then below market. And as you know, when you do rolling up wires [ph] at the charter, which is to make the appropriate account adjustment. But I think that they would be going down over the next couple of quarters, let's say in early, it was about $6,000 [ph] time around.

Great. And then, could you highlight how much you're looking forward for the deferral of amortization in 2020?

I think as I mentioned, we expect to see something close to $800 per vessel per day which I think should amount to -- I think nearly $4.5 million to $5 million.

And Anastasios, I'd like to notice on Slide 18, next year, the 12 months budget numbers are based on '19.

Yes.

Should -- is there linear association, if we based on 17 vessels or any adjustments that you could highlight for us that are based on regular?

They would see the most of the numbers would be the same. The G&A will increase by about $100. And the preferred dividend might increase by about $30, if it remains in cash, if it is converted in peak, it will not affect the cash flow breakeven. The only effect I see here it could be the G&A that monitors a dollars. And -- because the loan repayment that would be proportionally -- almost proportion, depends on the specialty [indiscernible] refused because when you sell a ship, you might have to pay part of the outstanding.

Great. And then, it looks like drydock activity was pretty low in the first quarter, and you know, you're budgeting higher numbers; could you just give us some timing on maybe the second quarter drydocking activity or for the rest of the year?

I believe we have one drydock right next quarter, although to be certain, I would like to check and get back to you on that.

We have a couple of ships that are due for a special survey. One in Q3, and one in Q4; we will decide if we're going to pass those special surveys, they are amongst the elder of our vessels. And we will decide if we're going to pass those special surveys or not depending on how the market has -- will be fairing at design. If the markets are very poor, we will not spend the money to pass the special survey; if the markets are recovering, and we can see that we will recover the money for the special survey within a year's time after we pass it we -- we will pass those special surveys.

And Aristides, would you mind mentioning that, you know the names of those vessels that are looking at third and fourth quarter?

It's -- the Ninos I think and the atoms.

Great. Thank you so much.

Thank you, Paul.

[Operator Instructions] There are no further questions at this time. Mr. Pittas, please continue.

Thank you all for participating in our call this quarter. And we will see you in three months' time again, and discuss the Q2 developments, and hopefully, the retraction of the COVID-19 worldwide.

Thank you, all.

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