Q3 2020 Euroseas Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the overseas conference call on the third quarter 2000 frenzy fine on children's though we have with US Mr. average students <unk>, Chairman and Chief Executive Officer on Mr., Tasios Aslidis, Chief Financial Officer of the company at this time all participants on the listen only mode.
That'd be a presentation followed by a question on especially on a which time if you wish to ask a question. Please press star one on your telephone keypad I must advise you that this conference is being recorded today forward looking statements. Please be reminded that the company announced that was on the press release that has been publicly distributed book.
Before passing on flow to Mr. <unk> I would like to remind everyone that in todays presentation on conference call Euroseas will be making forward looking statements. These statements are within the meaning of the federal Securities laws Matson discussed may be forward looking statements, which are based on current mother's day expectations that involve risks and uncertainties.
That may result, in such expectations, not being realized I kindly draw your attention to slide number two on the webcast presentation, which has the full forward looking statement on the same statement was also included in the press release. Please take a moment to do it through the whole statement on the lead assets.
And now I would like to pass the flow to Mr. Pittas. Please go ahead Sir.
Good afternoon, ladies and gentlemen.
And well from too.
Scheduled to go on sort of scale its day.
Good day, we it's me status just leave you so chief financial Officer.
The purpose of todays call is to discuss on financial results for the C. In nine months periods ended September Thirtyth 2020.
Let's start on slides of east to see our income statement highlights.
Well. This is really a book that total <unk> total revenue was $10.3 million.
Net income this points to median and net income attributable to common shareholders. After the point 2 million dividends on the series B preferred says was $50000 a one cents gain share basic and diluted.
Adjusted net loss attributable to common shareholders was a baby was 1.5 from engine what 56 cents per se basic items that you did after taking into account one book saves proceeds and some low gardens markets on this.
Adjusted EBITDA was $1.2 million.
Oh says relative you Wanna financial highlights in more detail later on in the presentation.
Please turn to slide flow to viewing D.C. low decent chunk of interpretation on Salem purchase developments.
During the quarter vs.
Yes, she is that about what sounds good from a period of three to seven months at $7200 per day.
It's also true NBC news yoke limbs declared the age spreads months option, which is basically from fixed my understanding from Citi.
The vessels currently items about $15400 for the day, starting disposed to total.
Yes <unk>.
She was fixed <unk> defaulted to 17 days that $8250 per day.
Yeah, no dry dockings expenses for the sales growth.
With regards to I didn't commercially lipsky, if they you name it but he was I do see about 50 days between SaaS is wise to the immediate I was I do from a couple of days from stream to true up.
Oh, Yes, Easter on November 22, and see we completed the sale of motor vessel, Yeah medicines.
Total of approximately $4.2 million well the net proceeds which we put on 75 million was used to repay the outstanding loan of the virus.
In addition to your math is doing it used to be we completed the sale of motor vessel Ninos I was 50 year old vessels on that and especially in the fleet.
The total of approximately 2.3 million of net proceeds of which 1.1 million was used to repay debt standing alone on the bus.
Please turn to slide five where would you can see I've got them sleep both sides.
On the completion of the above mentioned sales. We now have full steam vessels, which includes nine speed. This in five intermediates from paying that guy views.
Booksmith U 539000, deadweight stones, and 42.3 thousand do you capacity.
The weighted average age of the fleet over the sleeves by fees you switching on to talk to use.
Let's start on slide six.
Total employment subs.
I was on book Dope Associates, we have about from 93% covenants for the remainder of the strength you frenzy and about 40% for 321 based on my Maxim shoved into basins.
Absolutely we expect that there's the market trade securities. The government softer lives, we keep on the basis of the maximum today some force.
Please turn to slide seven.
Over the last five years, but it's still a seat utilization has been in excess of 98.8%.
You will see simple outstanding safety and environmental about growth, but at the same time, the company's managing to keep costs low despite that on ending on there's the fleet. The the other listed to GAAP.
Well the Sims growth as 2020, I would've operational fleet utilization was 99.9%.
On most of the fleet utilization in today's interest at school was 97.9 per se.
The graph on the page compares day, because excluding dry docking since 2011 with the average of abuse.
Well that a whole lot of cost achieved out amongst the lowest on the public shipping companies.
Let's go to slide nine to look at that time, so to that age that's true receptive to market during the second growth <unk> and beyond.
And shot that age student just said school doubling could east a console containership sizes.
They think of east from the significantly in October and November 2020 up this day.
Sometimes at that age for feed of intermediate sized vessels, reaching 2010 2011 levels the highest levels observed in the last decade.
Please turn to slide 10.
So the general containership market highlights of the second quarter in more these day.
According to Clarksons there.
From 250, you did see activities on Monday.
Moving on to $6600 a thousand a day in Q2 $7050.
The day into Sivy and currently stands at 11200 50000 Boes a day.
The team to have thousands do you do it very soon it.
Good East from an average of 7.6 thousand in Q2 to 8.5 thousand didn't used to be and confidently stand at about 14 point $1000 per day.
The mill side for all the changes we have from the on the larger sizes as well as the 4250 do you do in this basin interest from an average of 8.5 thousand in Q2.
Net 47000 in two city and currently stands at strength in 2000.
The 5000 seats on with the you do this very soon from some of that I've millions of 18000 in Q1 to 17000 in Q2, but currently stands at 26 in the $5000.
I've got it second hand prices for older than 20 year old vessels remains among the scrap price isn't it used to be which Scott.
At about <unk> percent higher as compared to that level doing the second book too low.
Exactly these prices have increased by about about 25 per cent as well.
Well younger vessels of about five to 15 years old there was a price increase of approximately 10 per cent for the C. In the 5000 T U range, whereas smaller vessels remain flat.
However, since October and following the increase in south of age price just an interest acquisitions increased substantially.
During this time the Newbuilding prices Weve know Scott <unk> signed a bill was stable some downward price.
On the absence of transactions, except from a few larger vessels indicates the lack of interest the current asking price.
The next day of Containerships fleet currently stands at about 1.5 per cent.
No telling.
Zero point 55 million to you <unk>.
Includes <unk> due to scrapping retrofitting.
It should also be noted that these numbers are down from the 2.7 million do you as a from me to me and this ship capacity the Cape and kept inactive for described but I still see reached its lowest level since mid 2019, and there is no close to zero.
The number of vessels scrapped interest in Q3 as scrapping in Q1 than the first part of Q2. So we didn't buy the luxe downs in India, Pakistan and Bangladesh that did not allow moving seems to be scrapped during that period when the market wasn't interest.
Oh that on the fleet has grown by 2.4% in 2000 strength.
Without the folks accounting for the I live activations or idling deposits.
Please turn to slide 11.
As a result from dependent day make they can on mic and trade growth environment has dramatically negatively changing 20020.
The last two quarters could be negatively impacted but the recovery seems to have come faster than I am its initial estimates, which gives a revised our pools its GDP estimates.
Yeah, I am asked projected growth GDP growth investing trends because being the revised upwards from the minus 4.9%.
In <unk> during the last school <unk> to minus 4.4% on looked over.
The U.S. economic growth is projected at minus 4.3 per cent why did you listen this is expected to need the steeper road to recovery <unk> GDP. They haven't growth expected for Tracy Tracy, it's minus 8.3 per se.
On the remaining important economies are now expected to contract as is clearly evident in the slide yet at low rates from those expected the growth to go.
Accents moving yet we'll start giving from Drexel painfully three percentage is expected.
In 2021 global growth according to the value Memphis music to return to growth because he got moving from a declining 2020 of minus 5.4%.
Positive 5.2% growth could be.
Naturally as a declining 20 strength is now projected to be smaller moving bounce from Twentytwenty. One is also expected to be low with.
Specifically on forensic threaten the U.S. is expected to grow by to go basically 0.1 per cent why did you Muslims growth is expected to be around 5.2 per cent inside this very strong 8.2 per se.
Similarly on other developed economies I projected to show a strong picked out.
In terms of on demand for containerized trade that we disclose that growth relates to global GDP growth and dismissive in <unk> do you, but my according to Clarksons. If there's no estimated at a negative 4.5 per cent in 2020.
However, most recent syndications day, taking into account. The latest serves integrate says is that supposed to be trade growth. We lived up at that items zero growth this year.
Notwithstanding the simple fact that high goes sort of eight to 5.9 per cent is expected to be seven 2020, one, indicating a strong improvement over the global economy.
At this point, we should note says that debate on goes towards ex those got him. He made will probably be the buy a scoping. They deem develops but also due to the uncertainty on the geopolitical situation and especially debate between the U.S. inside the.
Therefore market development projections.
Hi, This is unusual to me.
Please turn to slide 12 to review the containership age profile low believed.
On the delivery schedule.
As we can see the containership age.
Age profile on soft on the left side of the slide <unk>.
Overall, the convey net I sleep is a young fleet with a mere six cents of ships being over 20 years old.
However, the older vessels on maybe concentrated into smaller size classes, but obviously it separately.
Sequentially the growth of the fleet can be said Ms might even be negative in the next couple of years as the oldest seats are more likely to be Scott.
The right side, so the delivery schedule of the covenant on day to support the book, which is expressed as a percentage of the fleet.
The second thing is for the years 27 theme to financing the theme. So the axles lead to growth after taking into account scrapping cancellations and slippages.
That said on figures for 2020 to 2022, so just the order book before any scrapping and slippage is.
I recently, the total Containership order book Center stands at 7.8 per cent of the fleet.
Hey, good which is the lowest observed in more than 20 years.
The low level of order book provides a source of optimism for the quick recovery of that age is trade demand of doubles as supply side castles will be at the minimum levels.
Please turn to slide three where we'll discuss our outlooks on movie.
The unknown duration over the pandemic on these financing kwanzaa consequences had been made but at the expense is about the future trades very difficult.
The coming over the vaccines, which now seem highly throw up a book to the middle of 2021 day.
Gives rise to optimism that we will soon have evolved to a more normalized market, where the mobile continued to be affected by more classical drivers such as politics and economics.
Recently revised projections by Chicago Robinson estimates that the frenzy frantic contained ahead.
It's all demand will end up at that items zero per cent.
Magic improvement of babies for guests would suggest a much better but.
Picks up then what Clarksons number still indicate as economies of isn't on the opening faster.
However, recent blog downturn, you book might slow down from this trend.
On the these developments over not those bad the low bid on markets. In 2020. This probable that 2020 one demand growth was remaining strong will not be as strong as indicated in the earlier slide.
However, oh didn't have new seats is expected to be conveyed in the midst of the still uncertain developments and most importantly, the lack of clarity on the fuel of the future.
It's not knowing the optimal seems so even five years out makes the placing of anything new on the quite speculative and the risky.
Therefore for Twentytwenty, one on Twentytwenty, two the expected improvement in demand and the low order book could be a catalyst flow to continuing booming market provided that well probably 19 related negative disruptions from cease to exist and trade growth.
I will not let up a good.
Let's turn to slide 15.
The left side of this slide shows the evolution of the one year time charter rates spoken payments of 2000 to 5000 teachers use since 2000.
Is the financing financing crisis of 2008 and they they stayed that other depressed with Citi spikes within the five on the house to $14900 per the age.
I don't believe we have again.
We see against on Saturdays lifting with the high seen in 2010 to 2011.
But of course, they are still lower than the super cycle levels witnessed in the mid two thousands.
The rights on side of the slide servicing values in relation to historical prices since 2011.
As we can see containership values are still significantly below the median and the average historical values.
Seem to gauge the purchases of six cents per day, Scott on values good flow very good investments.
And with that I will now pass the flow through of share photosynthesis Levy's to go over it up and then some highlights and low these days.
Thank you very much I understand this morning from years, where ladies and gentlemen.
Oh, we're not big news from an extra flights to give you an overview on <unk> <unk> financial results.
Three and nine month periods ended September 32020.
Let's first start on that slide 16.
Well there from all drove 2020 the company reported book from net revenues from 12.3 million net presenting a 19.4 percentage Gurneys corporate book doesn't occur then yourself standpoint free medium during the second quarter from last year.
And which ones they are resolved.
Number on <unk> <unk> <unk> <unk> <unk>.
Just last quarter.
Endorsed partly offset by lower time charter range.
Oh, that's compared to the same day, you're talking about here.
The company reported net income from <unk> boring.
Moving to me here and.
Net income attributable to common shareholders.
Yeah, <unk> 0.03 medium as compared to a net loss from 42 million in the net loss attributable to common shareholders.
Point 3 million respectively.
On a quarter of 2019.
Very good I'll jump from Phil Gibbs <unk> Bruns Wendy.
Good point premium amortization or below.
Market time charter right.
Right and then 1.3 million net gain on sale on bass.
That sounds.
Depreciation expense for the third quarter of 2000 21.6 medium that's come from.
Back to 1.1 million from the same theaters on last year due again to the increased number of vessels owned and operated by the company.
Adjusted EBITDA for the third quarter of two parts on trending was 1.2 million compared to 1.6 million EPS you achieved during the third quarter of 2019.
Basic and diluted earnings per share attributable to common shareholders for growth.
Airport jump too far from Brendan.
0.1 dollars calculated on a 5.7 medium share basic and diluted share.
On average number of shares outstanding cash.
Back to basic and diluted loss per share.
10 cents.
Third quarter of 2019.
Just on frequency median based on get diluted weighted average number of shares outstanding.
Excluding the effect from they lost on club I'm sure on just for the quarter over.
Over the amortization will that be low market time charter converts from why.
Net gain on sale of vessels in the area on the.
Loss from beauty, but keeps the adjusted loss attributable to common stockholders for the quarter ended September 30 exercise on Brendan.
Sure being.
Zero on $26 per share basic and diluted compared to an adjusted net loss what was your reported $16 per share basic and diluted EPS for the same period of last year.
Usually security on net lease and looking to provide them on their part that's too much well fair on expression.
No no no.
Figures for the first nine months or for volume growth.
Well that's the company reported book does not driving is 41.3 million.
Same thing on 54.5 per cent counties.
Total net revenues of strength of 6.7 million during the first nine months of two farms on 19 again, that's a result on being prescribed that's number on vessels combined these kids were going higher time charter rates are best from Sarah you bring that you're well this year compared to last.
The company reported net income for the period of 3.5 million.
Net income attributable to common shareholders.
49 here as compared to a net loss from 0.9 medium and then that loss attributable to.
Common share holders of 2.5 million, respectively from the first nine months of two farms on 19.
The results for the first nine months of two parts on 20 <unk>.
Good day, and 1.3 million on net gain on sale of vessels and 1.5 million on more thanks.
Well below market time charter contracts acquired assets.
0.1 loss on right.
I dunno vessels young per Se and does your point sixmillion well from the realized loss on to anybody.
Comparatively news items for the non before the first nine months from 2019 growth is your point to me on 'em authorization for below market time charters on why and then 0.0 for me on the from realized gain on doing but.
Interest and other financing costs for the first nine months on 2020 amounted to 3.3 million compared to 2.3 million for the same period from last year.
This increase is due to the increased I'm on the debt on the current day rates compared to the same period of 2018, and this partly offset by day degrees LIBOR rates far bonk loans. During the period non appeared to have this year as compared to last.
Depreciation expense for the first nine months from 2020, <unk> 5.0 million compared to 2.7 million during the same period of 2019 that.
Stands out on the higher number of vessels, we want to know bags.
Adjusted EBITDA for the first nine months from 2000 29.7 million compared to 4.1 million. During the first nine months from 2019 again, they encouraged you to the high number of machines.
Basic and diluted earnings per share assets.
Moving to common shareholders for the first nine months from 2020, whereas you reported $62 calculated from 5.6 million basic and diluted weighted average number of shares outstanding compared to 128 loss per share from.
On for $19 per day for the first nine months from 2019 cash.
Net 2.1 million shares outstanding.
Excluding the effect on the income attributable to common share count just for the first nine months from 2020.
On the unrealized loss from Gary but.
The net gain on sale of assets. They lost on EBITDA, that's sounds CAD per se and the amortization on the below market time charter contracts are wide vs.
The adjusted earnings per share attributable to common shareholders for the nine month period ended September 32020, what's your being zero points $15 compared to an adjusted net loss per share of.
One.
Point $3 for the same period of 2019.
As I mentioned earlier security on that list of smoking their book of items in their problems that metro from expression.
Let's now turn to slide 17 to review our fleet performance net Liberty the more detailed than I did discuss down here.
Let's first look at our fleet utilization rates and let's start with our first quarter numbers on the left apart from the slide eight years on which are which is usually are broken down into commercial channel paresh.
Hi, again seem be slight Mr. Walker <unk> <unk> from <unk> for the third quarter of 2020, we reported 97.9% income Madison utilization rate and 99.9% operational utilization rate from.
That's 100% from axiom and 99.9% of passion I couldn't stand for example on here.
I would like to remind you here on the part utilization rate calculation does not include vessels and then scheduling to pass on dry docks you, saying of course, you then she happened during that period.
Well now average 16.5 passenger where on the North American coal.
Drifting apart from Grandee, earning an average time charter equivalent on grade <unk> 8004 from going into <unk>.
Dollars per Investor day come back weighted Carson.
Quite sound and $54 per vessel per day during the same periods in the third quarter of 2019 quarter during which we operated 17.5 balance or not.
Our book on Daily vessel operating expenses, including management fees general and administrative expenses, but excluding drydocking cost average 6007 from $59 per vessel per day during the third quarter. This year compared to 6006 on then Nate.
Doorbuster investing per day.
Good or bad during the same period of 2019.
Let's now look at the bottom of the day well.
To our daily cash flow breakeven levels presented here on that's on investment per day basis.
For the third quarter of two farms on trending our cash flow break even level was 7009 from July $24 per vessel per day compared to 9001 on $1 per vessel per day for the same period of 2019.
Let's now.
Nope.
There are parts of the slide to review the same figures for the nine month period.
So for the nine month period, we reported 97.2% commercial utilization rate and 90 598.5 per cent for passionately utilization rate during 2020 compared to 98.98 assets.
Income next year, and 100% up irrational from a same theater from last year.
During the first nine months from this year, we operate it.
18.2 vessels on average time charter equivalent rate of 9001 from 10 seconds rank on that's my question per day compared to a time charter equivalent rate.
8006 from $38 per vessel per day. During the same first same period. The first nine months from 2019. It appears though during which we operated 11.8 vessels on average.
Our total daily vessel operating expenses again, including management fees generally I'm used to give expansions by without drydocking cost on that score the period $6274 per vessel per day compared to 6000.
Next on than $48 per vessel per day for the same parents trusts nine months from 2019.
Looking again at the bottom of the table, we can see that our cash flow breakeven level from the first nine months from this year was $8662.
<unk> per day compared to $9005 per vessel per day for the first nine months from 2019.
Let's now move to slide 18.
View our debt profile.
This slide shows [laughter].
Yeah, the bottom GAAP EPS, our cash flow breakeven level expectations for the next day moms and from that book on the slide we can see on scheduled debt repayments over the next several years.
As we can see in 2020, Oh Warner payments included 11 point 75 million.
Oh pretty payments due to the sale of net four vessels.
That we mentioned we.
We sold during the year, including the mountains are starting to see it was mentioned earlier that were sold in November.
How long the repayments.
As you can see again.
[laughter] <unk> that's out of the <unk>.
In the shaded part of the box on the chart over the next three years continue to decline.
In terms of on the balloon payments.
2021, you have to repay about $12 million for a balloon payment is covered with four of our vessels in 2000 range. It too there is a small volume payment of 1.9 million you again covered by you on the four vessels and finally in 2020 free we kept balloon payments from about 3 million.
Hey, presenting launch per lot their lives by day remain in line for reference.
We believe that as we did in the past we'd be able to frac to refinance all of our bundled payments when they come to you.
Let me make a quick note on the cost of our funding before we move to reviewing called cross from low breakeven levels.
We share of immigrants margin on our bank, that's all from about 2.6% and that's true me the LIBOR rate towards 0.3%.
Oh senior debt cost down there it's about 3.9%.
You know would take into account the cost per phone related parking on that pretty fed equity dividends our average cost.
For our non equity funding that's from September Thirtyth was about 4.5 per cent.
Let's now look at the bottom of the stage, where we can see our cash flow break break even level expectation over the next 12 months from dollars per day.
Our long any payments that we discussed previously make a contribution on certain from the dollar from GAAP.
Cash flow breakeven level.
We make assumption for the main components of our personal breakeven 11.
These are buried next benches Gi net expenses interest.
Docking cost and then cash payments on our fair share.
Token dividend, we come up with a customer low breakeven level for the next 12 months.
For about 8000 range from gonna $60 per vessel per day.
That's going on recently mentioned, we share of our game. We go through the whole deferral from series B preferred shares given the option to pay a quarterly dividend income line.
For the kids to January 29, 2000 drinks wrong by issuing additional interest assets.
Let's now turn to slide 19.
This slide provides highlights from our balance.
That's from September 32 farms on trending well gosh another assets.
[laughter] well for about 10 years.
The book value from our vessel force.
Bob's comment on three.
Joining me here do you think that's a total value what crosses over about from.
13 million.
On the light decide we said we have an outstanding book that bank debt from 75.5 million.
Fabtech with your 8.4 media and talking light interest for about four or 5.7 million vast eating guest with a net book.
Value for 23.6 million or approximately four cents $4 per se.
Yeah, Josh the book value.
From vessels.
Fair market value natural gas from Baird.
We can calculate the net asset value for our fleet to be in that range from 60 to 70 free meal or about 5.6 dollars per share.
Recently, our share should be trading around between three and moving their crop.
More recently ended up on that level range we.
We believe that these paid on grades that presents a significant discount to book, our book and that Boston value per share.
Okay, what the appreciation potential that far share holders and congrats my Ctwenty four operating investors.
With that I would like to book to turn to flow back to watch TV is to manage the remainder of the call.
Thank you Diocese I want to open up the flow to any questions you may have.
Thank you.
Ladies and gentlemen, as a reminder, if you wish to ask a question. Please press star one on your telephone keypad away from the automated message advisors. Your line is day pen T's, then stay Joe Fastenal same before you ask your question. He wished to conceal request. Please press star two once again Tees pastime on if you wish to ask a question.
Yeah.
Your first question.
It's coming now. Please go ahead caller your line is a pen.
Oh. Thank you good good day Tate Sullivan from Maxim Group on can we follow up can you follow up with some comments on the Athens sale.
Sale on you noted market values for ships have increased recently as well and then that that sale you avoided some dry docking expenses.
Have a similar dynamic with other remaining ships on their fleet with contracts expiring. This year that you may consider selling or how you how will you evaluate each each so we yes, yes stayed high and no I think the items. It was the last vessel that we sold this year.
Yeah, we did say lead that the value of about $10 million about the the scrap value, indicating this improvement or in the markets that we have seen.
Go from movies simple movement into markets that we have seen.
It was a vessel that was due for special survey. So we would have needed to be.
Between one and $100 million to pass. This this is a value and installed the ballast water treatment flow. So we decided to do so that simple to dime.
We don't have any intention to sell any of those ships are in the foreseeable future right now.
Thank you and good to you at 1 million figure that you mentioned related to answer is that it will you recognize a gain on sale with that 4.9 million of net proceeds.
Oh I see on we will also.
Yeah, well the gain on carbon we recognized next quarter or sold in November.
There will be a book gain on that vessel.
Okay, and then you referred to the November 19 purchase agreement nationally and a small amount of shares related to that are there additional shares in the next year related to that in November 2019 acquisition or is it <unk> or any other outlet or payment obligations.
And I know, there's no doubt that that.
So that was an agreement with the seller of the vessels that if the container market. The years down was a stood alone.
Stronger than where it was last year, there will be an ex the compensation of $125000 for the vessel on the full ships that we acquired so paid in stock. So that that was that and there is no other wadhams outstanding of any kind.
Great and I I is.
Is there any you mentioned avoiding the Athens, avoiding the special survey in Dallas Water Gee can you just review uses of cash in the near term or are there. Other ships that require special surveys that you that you can talk about.
And there is no imminent.
On a special survey in their new virus seeds within the school to over the next go to I think the next special survey could be on the V.C. on ER in Q2 next year.
ER, but then again the inclination right now is to keep the best aluminum low Ethan, but then the deposits foods business.
Hey, we might have some ships I think there are a couple of for synergy shapes that it might have been my passing watershed and based on the first quarter.
Nothing nothing really dramatic in true cost.
Okay. Thank you. Thank you for all that detail I have a great rest of the day.
Nine states same state.
Thank you.
Your next question is coming now Pease go ahead. Your line is day pen.
Hi, its total Pratt from noble cap on a market.
Adjusted is can you or I'm sorry on costs can you just highlight again on the Athens, It sounds like you're going to book a gain of $1 million in the fourth quarter.
Yeah, I don't remember my cash what would be the they began to flow.
Work on our book, but it will probably be around that level.
And it sounds like it's my departure from them.
Okay that I just wasn't clear on that and then the <unk> the dry dock expense that you avoid it could you quantify that.
Yes, I said it was between one and one on the half million dollars. It involves the the full special survey Clos the installation of the ballast water treatment plant.
Great. Thank you so much and then.
When you look at taxes on your slide 18, you talked about the preferred dividends and you have a $100 per se.
You know a day of.
Preferred dividends it just to clarify is that assuming that you're going to pay.
The preferred dividend starting in January of 2021 in cash.
That's right.
Okay and.
And then when you look at you know the markets most significantly.
On you you have 40% of your days booked in 2021 do you have a range that's associated with that forward cover.
I mean, I don't have the calculations that you, but we can vary from let's say the advantage of that age Sonia charts on slide six.
Okay.
So I would say something which is just below 10000 mark.
The other three vessels, though is that on a city vessels or below the low will be fixed within this year in the next day couple of weeks.
Which we expect to fix at the high levels.
And the will affect these numbers so in about a couple of weeks, we should have a better clarity as three vessels, we are aiming to fix for food at least to you.
And you anticipated my next questionnaire cities is just your ability to move your fleet up to market rates and it sounds like it looks like you know the two.
You know 2600 TT you vessels. They what is it the story in <unk> and <unk> It freaky originate pardon.
The name of might get on mother, and baby, Yes, and I and I apologize to her for mispronouncing net [laughter], it's not easy [laughter], but could you talk about is.
Is there any reason why those two vessels wouldn't move up into what you're showing is the market rate in that 14000 range.
No. There is no reason they would not move up to that level.
Okay, but is it has a slight complication because a it will have to buy special survey. So there will be a special survey close which might affect a little bit surveys, but still.
On a dates we feel are even higher than the 14000 sits with that is shown in the graph.
At least on their net.
That's helpful. On then they the smaller when they check on express any reason why that when mail drop into you know.
11000 12000 range.
Yeah, I think it will be a investor day range that you mentioned, the 11 to 11 and a half something like that.
And then as you look at it sounds like you were would there be any discount if you went out a year every state is ER.
Her on you know one day, yeah generally flow generally for the smaller vessels its not easy to get a longer than the year end, but if <unk> today. Some charters are talking about that but of course, there wouldn't be a discount involved. So we will see how we will decide the two.
Fix.
Yeah that started the tradeoff of getting copper versus the current rate.
Any thought any thoughts on moving more of your fleet to the index rates you know when you look at the Oakland.
That's been able to capture a day near term moving rates pretty well, but you know the rest of the fleet is it's you know more static if you well any thoughts on moving.
You'd have more the fleet to index great.
On to that was generally do come to in container shipping don't do it as much in the dry bulk side that we have many fixes, which I've index linked.
But on the container side that is a very few softer lives that wants to do proceed along that way. So that's why you don't see that much we.
We like that we like that.
Yeah, I'm, a little more predictability.
Yeah, its not extremely predictable, but at least it guarantees full employment because you never know how the the index will move.
There's more predictability if you fix the year that the search on the base you know exactly what you're going to make.
Yes, sorry, that's what day, it's I'm alluding to is as opposed to index is moved around a lot when well touched us when you look at the blend payment that's too next year right. What it just a little bit over 12 million. When do you think you'll be able to talk about you have great potential pushing out.
That what what are you hoping for its force set or are you looking at the two year or three year push out or what do you think you might be able to push the maturity out even further.
I think we can we should be able to push it out for two years at least on most likely will do a three year on financing issues do you in December on next year.
Show day sometime to Chicago market develops and how.
How much of the earnings are on accumulation of cash block has been.
But a week.
Therefore, the scrap value on the four vessels on loans would be sufficient to cover.
That balloon so I expect.
Judging from our past success in the financing costs payments, we would have no to them I can share door financing.
Okay and Air Studies, you talked about the you know the contention payment on that.
You know the acquisition that you actually share.
I think I'm not sure.
It might.
Might have been asked but I'm not sure you addressed it but can you talk about why you say T. M programming in August and you know it wasn't isn't going to be active going into the next couple of quarters is that something we should expect or you know just what happened in August that day.
Made you use the ATM.
So we saw an increase in the price of Oh, the stock that we felt a warrant the use of the ATM.
I would have to increase our liquidity.
We think that the we've been kind of them from my kids and we the fixes that that do we have done ER and we will do.
We will use the ATM only opportunistically, if we do see or you know sudden rises in the stock price, which we have seen in the few occasions or.
Who probably momentum moving on to go live from activating that the kids. These smaller Stokes are at some point so more than anything.
Yeah.
Well typically we usually when the price that we can sell sanctions on both the and maybe.
At the time so.
Well, we don't goes you can net many dilute your way.
Yeah. So looking that you know sort of that north of $556 per share range and two concepts can you highlight just how much availability you have on getting actually on you know how many shares you can use whether it's a a dollar figure or in a number of share. So you could issue under the ATM.
[laughter] <unk> between two and two in the GAAP median income.
In dollars.
No in dollar terms on.
Okay, great. Thank you so much.
Thanks, a book.
[noise]. Thank you I will now hand, the call back to Mr. Honesti. This p. test for closing remarks. Please go ahead.
Well I want to thank everybody for listening in.
<unk>.
Two the results Oh, Q3, and the things look good and probably Q4 results as should be better than two cities do so we'll talk again or the beginning of the year to discuss the whole year, then the how close that side of it today.
Thank you.
Thank you everybody.
Thank you that does conclude today's conference call. Thank you for participating you may all disconnect.
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