GlobeNewswire Inc | Nov 11, 2020 04:05PM EST

November 11, 2020

ATHENS, Greece, Nov. 11, 2020 (GLOBE NEWSWIRE) -- EuroDry Ltd. (NASDAQ: EDRY, the Company or EuroDry), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three and nine-month periods ended September 30, 2020.

Third Quarter 2020Highlights:

-- Total net revenues of $6.8 million. Net income of $0.5 million; net income attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.1 million or $0.06 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $0.1 million or $0.05 adjusted earnings per share basic and diluted. -- Adjusted EBITDA1was $2.8 million. -- An average of 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day. -- The Company declared a dividend of $0.4 million on its Series B Preferred Shares. The dividend will be paid in-kind by issuing additional Series B Preferred Shares.

Nine Months2020 Highlights:

-- Total net revenues of $15.9 million. Net loss of $5.6 million; net loss attributable to common shareholders (after a $1.2 million dividend on Series B Preferred Shares) of $6.7 million or $2.97 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $6.1 million or $2.70 adjusted loss per share basic and diluted. -- Adjusted EBITDA1 was $1.8 million. -- An average of 7.0 vessels were owned and operated during the first half of 2020 earning an average time charter equivalent rate of $8,927 per day.

Aristides Pittas, Chairman and CEO of EuroDry commented During the third quarter of 2020, EuroDry benefited from gradually improving charter markets as a result of the re-opening of most economies after the pandemic-related lockdowns. Since the beginning of October and during early November, the market rates have given up some of the gains, but they remain at satisfactory levels given the increased economic uncertainty due to the second wave of the pandemic and renewed economic lockdowns, especially, in Europe.

Thus, we expect that the drybulk markets will be affected in the near term by the state of the world economies as influenced by the COVID-19 pandemic, and, in the medium term, by the low fleet growth due to historically low orderbook. Consequently, we anticipate that trade developments will be the key factor influencing the rates our vessels will earn.

To better exploit the above market trends, we are focused on reducing our capital costs and creating additional liquidity via selected debt refinancings and repayment of more expensive funding instruments in our balance sheet, and using any excess funds to renew or expand our fleet. We also continue to evaluate opportunities of using our public platform to consolidate other fleets as we believe this can offer significant appreciation potential to our shareholders and flexibility to partners joining our public platform.

Tasos Aslidis, Chief Financial Officer of EuroDry commented Comparing our results for the third quarter of 2020 with the same period of 2019, our net revenues decreased by about $0.9 million, due to the lower time charter equivalent rates our vessels earned as compared to the third quarter of 2019. Operating expenses, including management fees and general and administrative expenses increased by approximately $0.4 million as compared to the third quarter of 2019. This increase is mainly due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs, the latter resulting from difficulties in crew rotation due to COVID-19 related restrictions. Still, we believe that we maintain one of the lowest operating cost structures amongst the public shipping companies which is one of our competitive advantages.

Adjusted EBITDA during the third quarter of 2020 was $2.8 million compared to $2.2 million achieved for the third quarter of last year. Finally, as of September 30, 2020, our outstanding debt (excluding the unamortized loan fees) is about $52.1 million versus restricted and unrestricted cash of about $3.7 million.

_________________________1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDrys financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Third Quarter 2020Results:For the third quarter of 2020, the Company reported total net revenues of $6.8 million representing a 11.3% decrease over total net revenues of $7.7 million during the third quarter of 2019 which was the result of the lower time charter rates our vessels earned in the third quarter of 2020 compared to the corresponding period of 2019. The Company reported net income for the period of $0.5 million and net income attributable to common shareholders of $0.1 million, as compared to a net loss of $0.4 million and a net loss attributable to common shareholders of $0.8 million for the same period of 2019. For the third quarter of 2020, a gain on bunkers resulted in positive voyage expenses of $0.4 million for the period as compared to voyage expenses of $0.7 million in the same period of 2019. Losses on derivatives of $0.2 million and drydocking expenses of $0.1 million contributed to the result for the quarter as compared to losses on derivatives of $0.6 million and drydocking expenses of $0.7 million during the third quarter of 2019. Depreciation expenses for the third quarter of 2020 amounted to $1.7 million compared to $1.6 million for the same period of 2019.

Interest and other financing costs for the third quarter of 2020 amounted to $0.6 million, compared to $0.8 million for the same period of 2019. Interest during the second quarter of 2020 was lower due to the lower average outstanding debt and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended September 30, 2020, the Company recognized a marginal loss on three interest rate swaps and a $0.2 million realized loss on FFA contracts as compared to a loss on derivatives of $0.6 million for the same period of 2019, comprising of a $0.5 million loss on FFA contracts and a $0.1 million loss on one interest rate swap.

On average, 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day compared to 7.0 vessels in the same period of 2019 earning on average $12,088 per day.

Adjusted EBITDA for the third quarter of 2020 was $2.8 million compared to $2.2 million achieved during the third quarter of 2019.

Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2020 was $0.06 calculated on 2,279,730 basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.35 for the third quarter of 2019, calculated on 2,254,830 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss / (gain) on derivatives, the adjusted earnings per share attributable to common shareholders for the quarter ended September 30, 2020 would have been $0.05 compared to adjusted loss of $0.26 per share basic and diluted for the quarter ended September 30, 2019. Usually, security analysts do not include the above item in their published estimates of earnings per share.

First Nine Months2020 Results:For the first nine months of 2020, the Company reported total net revenues of $15.9 million representing a 19.1% decrease over total net revenues of $19.6 million during the first nine months of 2019, as a result of the lower time charter rates our vessels earned in the first nine months of 2020 compared to the same period of 2019. The Company reported net loss for the period of $5.6 million and net loss attributable to common shareholders of $6.7 million, as compared to a net loss of $1.4 million and a net loss attributable to common shareholders of $2.9 million, for the first nine months of 2019. Vessel operating expenses were $8.7 million for the first nine months of 2020 as compared to $8.0 million for the first nine months of 2019 due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs resulting from difficulties in crew rotation due to COVID-19 related restrictions. Depreciation expenses for the first nine months of 2020 were $4.9 million compared to $4.8 million during the same period of 2019.

Interest and other financing costs for the first nine months of 2020 amounted to $1.9 million compared to $2.7 million for the same period of 2019. This decrease is due to the lower average outstanding debt and the decreased Libor rates of our loans in the current period compared to the same period of 2019. For the nine months ended September 30, 2020, the Company recognized a $0.5 million loss on three interest rate swaps and a $0.3 million loss on FFA contracts as compared to a gain on derivatives of $0.3 million for the same period of 2019, comprising of a $0.6 million gain on FFA contracts and a $0.3 million loss on one interest rate swap.

On average, 7.0 vessels were owned and operated during the first nine months of 2020 earning an average time charter equivalent rate of $8,927 per day compared to 7.0 vessels in the same period of 2019 earning on average $10,750 per day. In the first nine months of 2020, two vessels underwent special survey for a total cost of $1.8 million, as compared to two vessels that underwent special survey in the first nine months of 2019 for a total cost of $1.6 million.

Adjusted EBITDA for the first nine months of 2020 was $1.8 million compared to $6.5 million achieved during the first nine months of 2019.

Basic and diluted loss per share attributable to common shareholders for the first nine months of 2020 was $2.97, calculated on 2,271,542 basic and diluted weighted average number of shares outstanding compared to $1.31 basic and diluted loss per share for the first nine months of 2019, calculated on 2,248,182 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the loss attributable to common shareholders for the first nine months of the year of the unrealized loss on derivatives, the adjusted loss per share attributable to common shareholders for the nine-month period ended September 30, 2020 would have been $2.70 compared to a loss of $1.13 per share basic and diluted for the same period in 2019. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Name Type Dwt Year Employment(*) TCERate ($/day) BuiltDry Bulk Vessels TC until Hire 106% of the AverageEKATERINI Kamsarmax 82,000 2018 Apr-21 Baltic Kamsarmax P5TC index (***) TC until Hire 101% of the AverageXENIA Kamsarmax 82,000 2016 Dec-2020 Baltic Kamsarmax P5TC index (***) with a floor at $11,000ALEXANDROS GuardianP. Ultramax 63,500 2017 Navigation Pool revenue from August 2018 GMax LLC Pool TC until Hire 99%EIRINI P Panamax 76,466 2004 Apr-21 of Average BPI** 4TC TC until Hire 98.5%STARLIGHT Panamax 75,845 2004 Aug-21 of Average BPI** 4TCTASOS Panamax 75,100 2000 TC until $9,000 Nov-20PANTELIS Panamax 74,020 2000 TC until $11,500 Nov-20Total DryBulk 7 528,931 Vessels

Note: (*) Represents the earliest redelivery date(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes.(***) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.

Summary Fleet Data:

3 months, 3 months, 9 months, 9 months, ended ended ended ended September September September September 30, 2019 30, 2020 30, 2019 30, 2020 FLEET DATA Average number of vessels 7.0 7.0 7.0 7.0 (1)Calendar days for fleet (2) 644.0 644.0 1,911.0 1,918.0 Scheduled off-hire days 29.9 0.0 65.9 51.2 incl. laid-up (3)Available days for fleet 614.1 644.0 1,845.1 1,866.8 (4) = (2) - (3)Commercial off-hire days 0.0 0.0 0.7 0.0 (5)Operational off-hire days 2.9 6.5 15.4 7.1 (6)Voyage days for fleet (7) = 611.2 637.5 1,829.0 1,859.7 (4) - (5) - (6)Fleet utilization (8) = (7) 99.5% 98.9% 99.1% 99.6% / (4)Fleet utilization,commercial (9) = ((4) - 100.0% 100.0% 100.0% 100.0% (5)) / (4)Fleet utilization,operational (10) = ((4) - 99.5% 98.9% 99.2% 99.6% (6)) / (4) AVERAGE DAILY RESULTS Time charter equivalent 12,088 11,873 10,750 8,927 rate (11)Vessel operating expensesexcl. drydocking expenses 4,855 5,673 4,939 5,337 (12)General and administrative 867 724 900 858 expenses (13)Total vessel operating 5,722 6,397 5,839 6,195 expenses (14)Drydocking expenses (15) 1,073 82 835 931

(1) Average number of vessels is the number of vessels that constituted the Companys fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Companys fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.

(4) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of scheduled off-hire days incl. laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent, or TCE, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:Tomorrow, November 12, 2020 at 10:30 a.m. Eastern Time, the Company's management will host a conference call and webcast to discuss the results.

Conference Call details:Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "EuroDry" to the operator.

A replay of the conference call will be available until November 18, 2020. The United States replay number is 1(866) 331-1332; from the UK 0(808) 238-0667; the standard international replay number is (+44) (0) 3333 00 9785 and the access code required for the replay is: 2489743#.

Audio webcast - Slides Presentation:There will be a live and then archived audio webcast of the conference call, via the internet through the EuroDry website (www.eurodry.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the Third Quarter 2020 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company's website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

EuroDry Ltd.Unaudited Consolidated Condensed Statements of Operations(All amounts expressed in U.S. Dollars except number of shares)

Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2020 2019 2020 (unaudited) (unaudited)Revenues Time charter revenue 8,085,650 7,193,251 20,729,160 16,795,245 Commissions (425,449) (399,715) (1,095,101) (917,915) Net revenues 7,660,201 6,793,536 19,634,059 15,877,330 Operating expenses Voyage expenses, net 697,518 (375,866) 1,067,717 194,137 Vessel operating expenses 2,634,821 3,135,569 7,961,650 8,744,999 Drydocking expenses 690,989 52,685 1,595,588 1,786,008 Vessel depreciation 1,615,947 1,651,870 4,813,165 4,904,386 492,065 518,161 1,476,608 1,491,665 Related party management feesGeneral and administrative expenses 558,033 466,381 1,720,091 1,646,536 Total Operating expenses (6,689,373) (5,448,800) (18,634,819) (18,767,731) Operating income / (loss) 970,828 1,344,736 999,240 (2,890,401) Other income / (expenses) Interest and other financing costs (848,473) (616,219) (2,729,021) (1,864,040) (Loss) / gain on derivatives, net (568,340) (178,760) 334,648 (821,906) Foreign exchange gain/(loss) 3,886 (12,336) 3,325 (8,445) Interest income 8,064 391 20,850 4,041 Other expenses, net (1,404,863) (806,924) (2,370,198) (2,690,350) Net (loss) / income (434,035) 537,812 (1,370,958) (5,580,751) Dividend Series B Preferred shares (358,726) (407,665) (1,390,255) (1,155,677) Preferred deemed dividend - - (185,665) - Net (loss) / income attributable to common (792,761) 130,147 (2,946,878) (6,736,428) shareholders(Loss) / earnings per share, basic and diluted (0.35) 0.06 (1.31) (2.97) Weighted average number of shares, basic and 2,254,830 2,279,730 2,248,182 2,271,542 diluted

EuroDry Ltd.Unaudited Consolidated Condensed Balance Sheets(All amounts expressed in U.S. Dollars except number of shares)

December 31, September 30, 2019 2020 ASSETS (unaudited)Current Assets: Cash and cash equivalents 5,396,406 249,742 Trade accounts receivable, net 1,843,008 1,846,273 Other receivables 459,785 535,452 Inventories 508,711 604,917 Restricted cash 1,083,036 744,363 Prepaid expenses 286,711 104,417 Total current assets 9,577,657 4,085,164 Fixed assets: Vessels, net 105,461,265 100,957,860 Long-term assets: Restricted cash 2,650,000 2,750,000 Total assets 117,688,922 107,793,024 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITYCurrent liabilities: Long term bank loans, current portion 6,806,294 5,956,294 Trade accounts payable 1,046,561 1,200,230 Accrued expenses 964,423 863,343 Accrued preferred dividends 358,726 - Derivatives - 514,044 Deferred revenue 445,824 342,839 Due to related companies 1,547,210 1,865,122 Total current liabilities 11,169,038 10,741,872 Long-term liabilities: Long term bank loans, net of current portion 49,688,840 45,880,368 Derivatives 304,174 392,490 Total long-term liabilities 49,993,014 46,272,858 Total liabilities 61,162,052 57,014,730 Mezzanine equity: Series B Preferred shares (par value $0.01,20,000,000 preferred shares authorized, 15,387 14,721,665 15,522,516 and 16,187 shares issued and outstanding,respectively) Shareholders' equity: Common stock (par value $0.01, 200,000,000shares authorized, 2,304,630 issued and 23,046 23,046 outstanding, respectively)Additional paid-in capital 52,802,574 52,989,575 Accumulated deficit (11,020,415) (17,756,843) Total shareholders' equity 41,805,205 35,255,778 Total liabilities, mezzanine equity and 117,688,922 107,793,024 shareholders' equity

EuroDry Ltd.Unaudited Consolidated Condensed Statements of Cash Flows(All amounts expressed in U.S. Dollars)

Nine Months Nine Months Ended Ended September September 30, 30, 2019 2020 Cash flows from operating activities: Net loss (1,370,958) (5,580,751) Adjustments to reconcile net loss to net cash provided by operating activities:Vessel depreciation 4,813,165 4,904,386 Amortization of deferred charges 117,703 105,528 Share-based compensation 133,632 187,001 Unrealized loss on derivatives 410,498 602,361 Changes in operating assets and liabilities 8,856,256 370,007 Net cash provided by operating activities 12,960,296 588,532 Cash flows from investing activities: Cash paid for vessel under construction (47,562) - Vessel improvements (961,274) (496,316) Net cash used in investing activities (1,008,836) (496,316) Cash flows from financing activities: Redemption of preferred shares (4,300,000) - Preferred dividends paid (952,886) (713,553) Loan arrangement fees paid (22,500) - Proceeds from long term bank loans 4,500,000 - Repayment of long term bank loans (9,959,000) (4,764,000) Net cash used in financing activities (10,734,386) (5,477,553) Net increase / (decrease) in cash, cash 1,217,074 (5,385,337) equivalents and restricted cashCash, cash equivalents and restricted cash at 7,754,927 9,129,442 beginning of periodCash, cash equivalents and restricted cash at 8,972,001 3,744,105 end of periodCash breakdown Cash and cash equivalents 5,605,154 249,742 Restricted cash, current 716,847 744,363 Restricted cash, long term 2,650,000 2,750,000 Total cash, cash equivalents and restricted cash 8,972,001 3,744,105 shown in the statement of cash flows

EuroDry Ltd.Reconciliation of Net income / (loss) to Adjusted EBITDA(All amounts expressed in U.S. Dollars)

Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September September September 30, September 30, 30, 30, 2019 2020 2019 2020Net (loss) / income (434,035) 537,812 (1,370,958) (5,580,751) Interest and otherfinancing costs, net 840,409 615,828 2,708,171 1,859,999 (incl. interest income)Vessel depreciation 1,615,947 1,651,870 4,813,165 4,904,386 Unrealized loss /(gain) on Forward 147,750 (1,590) 49,350 130,380 Freight AgreementderivativesLoss on interest rate 47,085 16,559 339,602 527,735 swap derivatives Adjusted EBITDA 2,217,156 2,820,479 6,539,330 1,841,749

Adjusted EBITDA Reconciliation:EuroDry Ltd. considers Adjusted EBITDA to represent net income / (loss) before interest, income taxes, depreciation, unrealized (gain) / loss on Forward Freight Agreements (FFAs) and (gain) / loss on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income / (loss), as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, unrealized (gain) / loss on FFAs and (gain) / loss on interest rate swaps, and depreciation. The Company's definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

EuroDry Ltd.Reconciliation of Netincome / (loss) to Adjusted net income / (loss)(All amounts expressed in U.S. Dollars except share data and number of shares)

Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September September September 30, September 30, 30, 30, 2019 2020 2019 2020Net (loss) / income (434,035) 537,812 (1,370,958) (5,580,751) Unrealized loss / 200,837 (14,648) 410,498 602,361 (gain) on derivativesAdjusted net (loss) / (233,198) 523,164 (960,460) (4,978,390) incomePreferred dividends (358,726) (407,665) (1,390,255) (1,155,677) Preferred deemed - - (185,665) - dividend Adjusted net (loss) /income attributable to (591,924) 115,499 (2,536,380) (6,134,067) common shareholdersAdjusted (loss) /earnings per share, (0.26) 0.05 (1.13) (2.70) basic and dilutedWeighted average numberof shares, basic and 2,254,830 2,279,730 2,248,182 2,271,542 diluted

Adjusted net (loss) / income and Adjusted (loss) / earnings per share Reconciliation:

EuroDry Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized loss/ (gain) on derivatives which includes FFAs and interest rate swaps. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company's fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized loss/ (gain) on derivatives, which may significantly affect results of operations between periods. Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net (loss) / income or (loss) / earnings per share, as determined by GAAP. The Company's definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.

About EuroDry Ltd.EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY.

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry's operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

The Company has a fleet of 7 vessels, including 4 Panamax drybulk carriers, 1 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers. EuroDrys 7 drybulk carriers have a total cargo capacity of 528,931 dwt.

Forward Looking StatementThis press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit our website www.eurodry.gr

Company Contact Investor Relations / Financial MediaTasos Aslidis Nicolas BornozisChief Financial Officer PresidentEuroDry Ltd. Capital Link, Inc.11 Canterbury Lane, 230 Park Avenue, Suite 1536Watchung, NJ07069 New York, NY10169Tel. (908) 301-9091 Tel. (212) 661-7566E-mail: aha@eurodry.gr E-mail: nbornozis@capitallink.com