Ardmore Shipping Corporation Announces Financial Results For The Three And Six Months Ended June 30, 2015

Aug 04, 2015, 07:30 ET from Ardmore Shipping

HAMILTON, Bermuda, Aug. 4, 2015 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company") today announced results for the three and six months ended June 30, 2015.

Highlights

  • Reported a net profit of $7.9 million for the three months ended June 30, 2015, or 30 cents basic and diluted earnings per share, as compared to $0.1 million, or 0.4 cents basic and diluted earnings per share, for the three months ended June 30, 2014. The company reported EBITDA (see Non-GAAP Measures section below) of $16.8 million for the three months ended June 30, 2015, an increase of $11.8 million from $5.0 million for the three months ended June 30, 2014.
  • Continued to deliver strong chartering performance with our spot trading MR tankers earning $22,402 per day for the three months ended June 30, 2015. The charter market is continuing to strengthen and currently our spot trading MR tankers are earning $23,500 per day for voyages in progress with approximately 43% of spot revenue days booked for the third quarter of 2015.
  • Took delivery of three vessels since the last quarter. The Ardmore Sealion and Ardmore Seafox, two 49,999 Eco-design IMO3 MR tankers constructed at SPP Shipbuilding in South Korea, delivered on May 26, 2015 and June 25, 2015 respectively. The Ardmore Chinook, a 25,217 Dwt Eco-design IMO 2 product and chemical tanker, was delivered from Fukuoka Shipbuilding, Japan on July 17, 2015.
  • Total debt drawn down in the quarter amounted to $69.1 million, in line with vessel deliveries and cash released from a refinancing arrangement completed in the first quarter.
  • On July 15, 2015, Ardmore's Board of Directors announced a cash dividend of $0.10 per share for the quarter ended June 30, 2015. The dividend is payable on August 14, 2015 to all shareholders of record on July 31, 2015. The Company is currently evaluating a dividend increase, which it expects to announce in the coming weeks and which would commence with the third quarter, in recognition of the completion of its newbuilding program and the continued strength of the charter market, which have resulted in significantly increased earnings.

Anthony Gurnee, the Company's Chief Executive Officer commented:

"Once again we are pleased to report a very successful quarter, with earnings of $7.9 million representing 30 cents per share, a 50% increase from the first quarter.  This performance is attributable to market strength combined with well-timed fleet growth, as well as a flexible chartering strategy placing emphasis on spot trading and a highly efficient operating platform.  We expect that our performance will continue to strengthen through the year as a result of a continuing robust charter market and fleet growth, with our final three tankers delivering by year-end. In light of this strong performance, our Board is evaluating a dividend increase commencing with the third quarter, which we expect to announce in the coming weeks.

The charter market has continued to strengthen year-to-date, with momentum building through July and into August in an otherwise quiet time of the year for the product tanker market.  We believe that demand growth will continue to be supported by the new oil market, characterized by heightened oil demand, storage inefficiencies, and long-haul oil trading activity, as well as the ongoing fundamental shift in refinery capacity to oil producing nations, which in itself is significantly boosting ton-mile demand.  In the meantime, MR supply growth is moderate relative to demand, and the order book is shrinking rapidly with deliveries far exceeding new orders."

Summary of Recent and Second Quarter 2015 Events

Fleet

Deliveries

The Company took delivery of three vessels since the last quarter. The average age of our fleet as at August 1, 2015 is 4.3 years.

On May 26, 2015, Ardmore took delivery of the Ardmore Sealion (Hull S-1162), a 49,999 Dwt Eco-design IMO3 product and chemical tanker, and on June 25, 2015, Ardmore took delivery of the Ardmore Seafox (Hull S-1163), a 49,999 Dwt Eco-design IMO3 product and chemical tanker. Both vessels were constructed at SPP Shipbuilding in South Korea and following delivery, both vessels commenced employment in a pool with a leading oil trader.   

On July 17, 2015, Ardmore took delivery of the Ardmore Chinook (Hull N-2065), a 25,217 Dwt Eco-design IMO2 product and chemical tanker. The vessel was constructed at Fukuoka Shipbuilding, Japan and following delivery, the Ardmore Chinook was employed on a time charter.

Ardmore currently has three additional vessels under construction and, based on the current schedule, we expect to take delivery of these vessels throughout the remaining two quarters of 2015 as follows:

Vessel

Yard

Delivery

Employment

Ardmore Seawolf (S-1171)

SPP Shipbuilding , South Korea

3Q

Pool

Ardmore Seahawk (S-1172)

SPP Shipbuilding , South Korea

4Q

Pool

Ardmore Chippewa (N-2067)

Fukuoka Shipbuilding, Japan

4Q

TBD

Fleet Operations and Employment

The Company has 21 vessels currently in operation, comprising 13 MR tankers ranging 45,000 Dwt to 50,000 Dwt (seven Eco-design and six Eco-mod) and eight product and chemical tankers ranging 17,000 Dwt to 37,000 Dwt (five Eco-design and three Eco-mod).

MR Tankers (45,000 Dwt – 50,000 Dwt)

At the end of the second quarter of 2015, the Company had ten MR tankers trading in the spot market or in pools and three MR tankers employed on time charter. With 70% of our MR tankers revenue days arising from spot market and pool employment, the spot-trading and pool employed vessels, comprising five Eco-design and five Eco-mod, earned an average of $22,402 per day for the quarter. Overall for the quarter, across all employment types, our seven Eco-design MR tankers earned $20,732 per day, and our six Eco-mod MR tankers earned $20,212 per day, including profit shares.

In the third quarter of 2015, the Company expects to have 73% of its revenue days for its MR Eco-design tankers employed in the spot market and the remaining 27% of revenue days are expected to be employed on time charters at an average rate of $16,050 per day. For Eco-mod MR tankers the Company estimates that 83% of revenue days are expected to be employed in the spot market and the remaining 17% of revenue days are expected to be employed on time charters at an average rate of $14,799 per day.

For the third quarter of 2015, the Company has booked approximately 43% of spot revenue days for MR Tankers at an average rate of $23,500 per day.

Product / Chemical Tankers (IMO 2: 17,000 Dwt – 37,000 Dwt)

At the end of the second quarter of 2015, the Company had seven IMO 2 product and chemical tankers in operation (four Eco-design and three Eco-mod), five of which were trading in pools and two of which were employed on time charters.  During the second quarter of 2015, across all employment types, the Company's four Eco-design product and chemical vessels earned an average daily rate of $16,769 per day, and the three Eco-mod product and chemical vessels earned an average daily rate of $14,310 per day.

For the third quarter of 2015, the Company expects to have approximately 62% of revenue days for the Eco-design product and chemical tankers employed in a pool, with 38% of the revenue days covered by time charter employment at an average rate of $16,111 per day. For the Eco-mod product and chemical tankers, the Company expects approximately 67% of revenue days to be employed in a pool, with the remaining 33% covered by time charter employment.

Drydocking

The Ardmore Capella completed its drydock at the start of the second quarter. Ardmore has no scheduled drydocking in the third quarter of 2015.

Financing

In the second quarter of 2015 Ardmore drew down $69.1 million in previously committed debt in line with vessel deliveries and refinancing arrangements. On July 15, 2015 the Company drew down a further $19.5 million in line with the delivery of the Ardmore Chinook. Ardmore currently has approximately $63.6 million of committed debt in place for the remaining three vessels the Company has on order.

Dividend

On July 15, 2015, Ardmore's Board of Directors announced a cash dividend of $0.10 per share for the quarter ended June 30, 2015. The dividend is payable on August 14, 2015 to all shareholders of record on July 31, 2015.

Ardmore introduced its dividend reinvestment plan ("DRIP") in April 2015. The DRIP allows participants to obtain additional common shares of the Company by automatically reinvesting all or any portion of the cash dividends paid on common shares held by the DRIP participant. The DRIP will be administered through the Company's transfer agent, Computershare Trust Company, N.A. ("Computershare") and shareholders and other persons may obtain a copy of the DRIP prospectus and enrollment forms by contacting Computershare at (877) 373-6374, or visiting Computershare's website at www.computershare.com/investor.

The Company is currently evaluating a dividend increase in recognition of the upcoming completion of its newbuilding program and the continued strength of the charter market, which have resulted in significantly increased earnings. The final vessel in the Company's newbuilding program is expected to deliver in late October 2015, at which point the Company will have 24 ships in operation generating earnings and cashflow.

Results for the three months ended June 30, 2015 and 2014

The Company reported a net profit of $7.9 million, or 30 cents basic and diluted earnings per share, for the three months ended June 30, 2015, as compared to $0.1 million, or 0.4 cents basic and diluted earnings per share, for the three months ended June 30, 2014. For the three months ended June 30, 2015, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $16.8 million, an increase of $11.8 million from $5.0 million for the three months ended June 30, 2014.

Adjusted net profit (see Non-GAAP Measures section below) amounted to $8.3 million, or 32 cents basic and diluted adjusted earnings per share (see Non-GAAP Measures section below), for the three months ended June 30, 2015, as compared to $0.4 million, or 2 cents basic and diluted adjusted earnings per share, for the three months ended June 30, 2014. For the three months ended June 30, 2015, the Company reported adjusted EBITDA (see "Non-GAAP Measures" section below) of $17.1 million, an increase of $11.8 million from $5.3 million for the three months ended June 30, 2014. Results were adjusted for share-based compensation (a non-cash item) in each period, as applicable.

Results for the six months ended June 30, 2015 and 2014

The Company reported a net profit of $13.0 million, or 50 cents basic and diluted earnings per share, for the six months ended June 30, 2015, as compared to a net loss of $0.3 million, or 1 cents basic and diluted net loss per share, for the six months ended June 30, 2014. For the six months ended June 30, 2015, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $28.9 million, an increase of $19.9 million from $9.0 million for the six months ended June 30, 2014.

Adjusted net profit (see Non-GAAP Measures section below) amounted to $13.7 million, or 53 cents basic and diluted adjusted earnings per share (see Non-GAAP Measures section below), for the six months ended June 30, 2015, as compared to $0.4 million, or 2 cents basic and diluted adjusted earnings per share, for the six months ended June 30, 2014. For the six months ended June 30, 2015, the Company reported adjusted EBITDA (see "Non-GAAP Measures" section below) of $29.7 million, an increase of $20.0 million from $9.7 million for the six months ended June 30, 2014. Results were adjusted for share-based compensation (a non-cash item) in each period, as applicable.

Management's Discussion and Analysis of Financial Results

Revenue for the three months ended June 30, 2015 was $39.3 million, an increase of $25.5 million from $13.8 million for the three months ended June 30, 2014. The increase is due to an increase in the average number of owned vessels to 18.4 for the three months ended June 30, 2015, from 11.1 for the three months ended June 30, 2014, and an increase in earnings per day generated by vessels employed in the spot market. The Company had eight vessels employed under direct spot chartering arrangements as at June 30, 2015 and had one vessel employed under direct spot chartering arrangements as at June 30, 2014. Under direct spot chartering arrangements, revenue is recognized on a gross freight basis, while under time chartering arrangements and pools, the charterer typically pays voyage expenses and revenue is recognized on a net basis.

Commissions and voyage related costs were $8.5 million for the three months ended June 30, 2015, an increase of $8.2 million from $0.3 million for the three months ended June 30, 2014. This increase is primarily due to 681 additional revenue days in the second quarter of 2015 as compared to the second quarter of 2014, in line with the additional vessel deliveries noted above. Furthermore, the increase in spot employed vessels significantly increases commissions and voyage related expenses, as under a spot chartering arrangement, all voyage expenses are borne by Ardmore, as opposed to the charterer, while under time chartering arrangements and pools, the charterer typically pays voyage expenses.

Time charter equivalent ("TCE") revenue, a non-GAAP measure, is vessel revenues less commissions and voyage related costs (including bunkers and port charges). TCE revenue is a standard shipping industry measure used primarily to compare performance of the Company's fleet irrespective of changes in the mix of employment (i.e. direct spot charters, pool employment or time charters). TCE per day amounted to $18,675 per day for the three months ended June 30, 2015, increasing by $4,506 per day from $14,169 per day for the three months ended June 30, 2014.

Vessel operating expenses were $11.3 million for the three months ended June 30, 2015, an increase of $4.7 million from $6.6 million for the three months ended June 30, 2014. This increase is primarily due to an increase in the number of vessels in operation for the three months ended June 30, 2015. Due to the nature of this expenditure, vessel operating expenses are prone to fluctuations between periods. Fleet operating costs per day, including technical management fees, were $6,457 for the three months ended June 30, 2015, as compared to $6,470 for the three months ended June 30, 2014.

Depreciation expense for the three months ended June 30, 2015 was $5.7 million, an increase of $2.3 million from $3.4 million for the three months ended June 30, 2014. The increase is due to an increase in the average number of owned vessels to 18.4 for the three months ended June 30, 2015, from 11.1 for the three months ended June 30, 2014.

Amortization of deferred dry dock expenditure for the three months ended June 30, 2015 was $0.6 million, as compared to $0.5 million for the three months ended June 30, 2014. This increase is due to the timing of scheduled drydockings occurring across the fleet. The capitalized costs of drydockings for a given vessel are depreciated on a straight line basis to the next scheduled drydocking of the vessel.

General and administrative expenses for the three months ended June 30, 2015 were $2.7 million, as compared to $1.9 million for the three months ended June 30, 2014. The increase is in relation to additional costs associated operating a growing fleet, along with general and administrative expenses being prone to fluctuations between periods.

Interest expense and finance costs (which include loan interest, capital lease interest and amortization of deferred financing fees) for the three months ended June 30, 2015 were $2.5 million, as compared to $1.0 million for the three months ended June 30, 2014.

Cash interest expense increased by $1.4 million from $1.6 million for the three months ended June 30, 2014 to $3.0 million for the three months ended June 30, 2015. This is as a result of an increase in the average debt balance following the delivery of vessels since June 30, 2014. Capitalized interest, which relates to vessels under construction, amounted to $0.9 million for the three months ended June 30, 2015, as compared to $0.9 million for the three months ended June 30, 2014. Amortization of deferred financing charges for the three months ended June 30, 2015 was $0.4 million, as compared to $0.2 million for the three months ended June 30, 2014.

Liquidity

As of June 30, 2015, the Company had $41.9 million (December 31, 2014: $59.9 million) available in cash and cash equivalents. The following debt and capital lease liabilities were outstanding as of the dates indicated:

As of

Jun 30, 2015

Dec 31, 2014

Debt

326,931,970

204,728,268

Capital Leases

27,980,759

28,800,329

Total

354,912,729

233,528,597

Conference Call

The Company plans to have a conference call on Tuesday, August 4, 2015 at 10:00 a.m. Eastern Time to discuss its results for the quarter ended June 30, 2015. All interested parties are invited to listen to the live conference call and slide presentation by choosing from the following options:

  1. By dialing 877-870-4263 (U.S.) or 412-317-0790 (International) and referencing Ardmore Shipping.
  2. By accessing the live webcast at Ardmore Shipping's website at www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, a replay of the call will be available on the Company's website or through August 12, 2015 at 877-344-7529 or 412-317-0088. Enter the passcode 10069872 to access the audio replay. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore Shipping owns and operates a fleet of mid-size product and chemical tankers ranging from 17,500 Dwt to 50,300 Dwt. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of tankers.

Ardmore's core strategy is to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships, maintain its cost advantage in assets, operations and overhead, while creating significant synergies and economies of scale as the Company grows. Ardmore provides its services to customers through voyage charters, commercial pools and time charters and enjoys close working relationships with key commercial and technical management partners. Ardmore views the continued development of these relationships as crucial to its long-term success.

 

Ardmore Shipping Corporation

Unaudited Condensed Consolidated Balance Sheet

(Expressed in U.S. dollars, unless otherwise stated)

As at

ASSETS

Jun 30, 2015

Dec 31, 2014

Current assets

Cash and cash equivalents

41,888,184

59,879,596

Receivables, trade

16,444,735

4,985,900

Working capital advances

1,475,000

500,000

Prepayments

1,160,328

683,762

Advances and deposits

4,427,949

3,052,992

Other receivables

350,058

636,464

Inventories

4,228,606

2,486,340

Total current assets

69,974,860

72,225,054

Non-current assets

Vessels and vessel equipment, net

570,254,669

371,618,023

Deferred dry dock expenditure, net

4,089,484

4,229,617

Vessels under construction

51,982,986

113,985,986

Other non-current assets, net

164,195

156,311

Deferred finance charges, net

9,230,390

8,625,882

Total non-current assets

635,721,724

498,615,819

TOTAL ASSETS

705,696,584

570,840,873

LIABILITIES AND EQUITY

Current liabilities

Payables, trade

9,959,103

7,038,621

Charter revenue received in advance

2,586,109

1,542,863

Other payables

419,070

648,105

Accrued interest on loans

1,308,795

882,594

Current portion of long-term debt

26,592,598

19,394,928

Current portion of capital lease obligations

1,779,526

1,702,981

Total current liabilities

42,645,201

31,210,092

Non-current liabilities

Non-current portion of long-term debt

300,339,372

185,333,340

Non-current portion of capital lease obligations

26,201,233

27,097,348

Total non-current liabilities

326,540,605

212,430,688

Equity

Share capital

261,659

261,000

Additional paid in capital

335,404,721

339,082,131

Treasury stock

(1,278,546)

(1,278,546)

Accumulated surplus / (deficit)

2,122,944

(10,864,492)

Total equity

336,510,778

327,200,093

TOTAL LIABILITIES AND EQUITY

705,696,584

570,840,873

 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Operations

(Expressed in U.S. dollars, unless otherwise stated)

Three months ended

Six months ended

Jun 30, 2015

Jun 30, 2014

Jun 30, 2015

Jun 30, 2014

REVENUE

Revenue

39,312,613

13,828,598

68,928,550

26,214,862

OPERATING EXPENSES

Commissions and voyage related costs

8,546,389

299,085

14,667,236

545,684

Vessel operating expenses

11,257,628

6,606,327

20,477,936

12,506,318

Depreciation

5,713,901

3,401,368

10,622,505

6,423,130

Amortization of deferred dry dock expenditure

607,394

514,253

1,170,024

955,838

General and administrative expenses

2,727,980

1,907,557

4,843,622

4,196,823

Total operating expenses

28,853,292

12,728,590

51,781,323

24,627,793

Profit from operations

10,459,321

1,100,008

17,147,227

1,587,069

Interest expense and finance costs

(2,529,459)

(1,000,036)

(4,139,228)

(1,890,022)

Interest income

4,389

8,278

6,023

10,300

Profit / (loss) before taxes

7,934,251

108,250

13,014,022

(292,653)

Income tax

(14,098)

(13,505)

(26,586)

(26,054)

Net profit / (loss)

7,920,153

94,745

12,987,436

(318,707)

Earnings / (loss) per share, basic and diluted

0.304

0.004

0.500

(0.014)

Weighted average number of shares outstanding, basic and diluted

26,014,629

26,100,000

25,997,708

22,996,409

 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Cash Flows

(Expressed in U.S. dollars, unless otherwise stated)

Six months ended

Jun 30, 2015

Jun 30, 2014

OPERATING ACTIVITIES

Net profit / (loss)

12,987,436

(318,707)

Non-cash items:

Depreciation

10,622,505

6,423,130

Amortization of deferred dry dock expenditure

1,170,024

955,838

Share based compensation

714,369

687,954

Amortization of deferred finance charges

697,794

412,847

Changes in operating assets and liabilities:

Receivables, trade

(11,458,835)

(728,720)

Working capital advances

(975,000)

34,571

Prepayments

(476,566)

(24,433)

Advances and deposits

(1,374,957)

240,995

Other receivables

286,406

(103,827)

Inventories

(1,742,266)

(548,946)

Payables, trade

2,920,482

3,339,292

Charter revenue received in advance

1,043,246

(1,010,017)

Other payables

(229,035)

26,053

Accrued interest on loans

426,201

155,069

Deferred dry dock expenditure

(1,029,891)

(2,530,169)

Net cash provided by operating activities

13,581,913

7,010,930

INVESTING ACTIVITIES

Payments for acquisition of vessels and equipment

(128,083,707)

(114,292,560)

Payments for vessels under construction

(19,139,192)

(17,388,716)

Payments for other non-current assets

(41,136)

(31,903)

Net cash used in investing activities

(147,264,035)

(131,713,179)

FINANCING ACTIVITIES

Proceeds from long-term debt

132,965,000

45,000,000

Repayments of long term debt

(10,761,298)

(5,254,000)

Repayments of capital leases

(819,570)

(758,600)

Payments for deferred finance charges

(1,302,302)

(3,428,827)

Net proceeds from equity offering

-

102,684,519

Payment of dividend

(4,391,120)

(4,415,000)

Net cash provided by financing activities

115,690,710

133,828,092

Net (decrease) / increase in cash and cash equivalents

(17,991,412)

9,125,843

Cash and cash equivalents at the beginning of the year

59,879,596

56,860,845

Cash and cash equivalents at the end of the period

41,888,184

65,986,688

 

 

Ardmore Shipping Corporation

Unaudited Other Operating Data

(Expressed in U.S. dollars, unless otherwise stated)

Three months ended

Six months ended

Jun 30, 2015

Jun 30, 2014

Jun 30, 2015

Jun 30, 2014

ADJUSTED EBITDA (1)

17,142,647

5,349,728

29,654,125

9,653,991

AVERAGE DAILY DATA

Fleet time charter equivalent per day (2)

18,675

14,169

17,992

14,231

Fleet operating costs per day (3)

6,109

6,122

5,990

6,138

Technical management fees per day (4)

348

348

362

356

6,457

6,470

6,352

6,494

MR Tankers Spot TCE per day (2)

22,402

19,450

22,151

19,450

MR Tankers Eco-Design

TCE per day (2)

20,732

15,859

19,372

15,710

Vessel operating costs per day (5)

6,461

6,043

6,289

5,960

MR Tankers Eco-Mod

TCE per day (2)

20,212

14,710

19,621

14,581

Vessel operating costs per day (5)

6,787

6,858

6,561

7,127

Prod/Chem Tankers Eco-Design (25k - 37k Dwt)

TCE per day (2)

16,769

-

16,715

-

Vessel operating costs per day (5)

5,792

-

5,930

-

Prod/Chem Tankers Eco-Mod (17k - 29k Dwt)

TCE per day (2)

14,310

11,206

13,290

11,852

Vessel operating costs per day (5)

6,680

6,580

6,456

6,285

FLEET

Upgrades and enhancements expensed

441,403

93,134

757,244

170,878

Average number of owned operating vessels

18.4

11.1

17.2

10.5

(1)

Adjusted EBITDA is a non-GAAP measure and is defined and reconciled to the most directly comparable GAAP measure under the "Non-GAAP Measures" section below.

(2)

Time Charter Equivalent ("TCE") daily rate is the gross charter rate or gross pool rate, as applicable, per revenue day plus Communication Victualing and Entertainment Income ("CVE"). Revenue days are the total number of calendar days the vessels are in our possession less off-hire days generally associated with drydocking or repairs. For vessels employed on voyage charters, TCE is the net rate after deducting voyage costs incurred.

(3)

Fleet operating costs per day are routine operating expenses and comprise, crewing, repairs and maintenance, insurance, stores, lube oils and communication costs. They do not include additional costs related to upgrading or enhancement of the vessels that are not capitalized.

(4)

Technical management fees are fees paid to third-party technical managers.

(5)

Vessel operating costs per day includes technical management fees.

 

 

Ardmore Shipping Corporation

Fleet List as at August 3, 2015

Vessel Name

Type

Dwt

IMO

Built

Country

Flag

Specification

In Operation

Ardmore Seavaliant

Product/Chemical

49,998

3

Feb-13

Korea

MI

Eco-design

Ardmore Seaventure

Product/Chemical

49,998

3

Jun-13

Korea

MI

Eco-design

Ardmore Seavantage

Product/Chemical

49,997

3

Jan-14

Korea

MI

Eco-design

Ardmore Seavanguard

Product/Chemical

49,998

3

Feb-14

Korea

MI

Eco-design

Ardmore Sealion

Product/Chemical

49,999

3

May-15

Korea

MI

Eco-design

Ardmore Seafox

Product/Chemical

49,999

3

Jun-15

Korea

MI

Eco-design

Ardmore Endeavour

Product/Chemical

49,997

2

Jul-13

Korea

MI

Eco-design

Ardmore Seafarer

Product

45,744

Aug-04

Japan

MI

Eco-mod

Ardmore Seatrader

Product

47,141

Dec-02

Japan

MI

Eco-mod

Ardmore Seamaster

Product/Chemical

45,840

3

Sep-04

Japan

MI

Eco-mod

Ardmore Seamariner

Product

45,726

Oct-06

Japan

MI

Eco-mod

Ardmore Sealeader

Product

47,463

Aug-08

Japan

MI

Eco-mod

Ardmore Sealifter

Product

47,472

Jul-08

Japan

MI

Eco-mod

Ardmore Dauntless

Product/Chemical

37,764

2

Feb-15

Korea

MI

Eco-design

Ardmore Defender

Product/Chemical

37,791

2

Feb-15

Korea

MI

Eco-design

Ardmore Centurion

Product/Chemical

29,006

2

Nov-05

Korea

MI

Eco-mod

Ardmore Cherokee

Product/Chemical

25,215

2

Jan-15

Japan

MI

Eco-design

Ardmore Cheyenne

Product/Chemical

25,217

2

Mar-15

Japan

MI

Eco-design

Ardmore Chinook

Product/Chemical

25,217

2

Jul-15

Japan

MI

Eco-design

Ardmore Calypso

Product/Chemical

17,589

2

Jan-10

Korea

MI

Eco-mod

Ardmore Capella

Product/Chemical

17,567

2

Jan-10

Korea

MI

Eco-mod

Under Construction

SPP Hull S-1171

Product/Chemical

50,300

3

3Q15

Korea

MI

Eco-design

SPP Hull S-1172

Product/Chemical

50,300

3

4Q15

Korea

MI

Eco-design

FKA Hull N-2067

Product/Chemical

25,000

2

4Q15

Japan

MI

Eco-design

Total

24

970,338

 

Non-GAAP Measures

This press release describes EBITDA, adjusted EBITDA, adjusted net profit and adjusted net earnings per share, which are not measures prepared in accordance with U.S. GAAP and which are reconciled below. EBITDA is defined as earnings before interest, taxes, depreciation and amortization.  Adjusted EBITDA is defined as EBITDA before share-based compensation and certain other items that Ardmore believes are not representative of its operating performance.

These non-GAAP measures are presented in this press release as the Company believes that they provide investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures do not have standardized meanings, and are therefore unlikely to be comparable to similar measures presented by other companies.  All amounts in the tables below are expressed in U.S. dollars, unless otherwise stated.

 

EBITDA & Adjusted EBITDA

Three months ended

Six months ended

Jun 30, 2015

Jun 30, 2014

Jun 30, 2015

Jun 30, 2014

Net profit / (loss)

7,920,153

94,745

12,987,436

(318,707)

Interest income

(4,389)

(8,278)

(6,023)

(10,300)

Interest expense and finance costs

2,529,459

1,000,036

4,139,228

1,890,022

Income tax

14,098

13,505

26,586

26,054

Depreciation

5,713,901

3,401,368

10,622,505

6,423,130

Amortization of deferred dry dock expenditure

607,394

514,253

1,170,024

955,838

EBITDA

16,780,616

5,015,629

28,939,756

8,966,037

Share based compensation (non-cash)

362,031

334,099

714,369

687,954

Adjusted EBITDA

17,142,647

5,349,728

29,654,125

9,653,991

Adjusted net profit

Three months ended

Six months ended

Jun 30, 2015

Jun 30, 2014

Jun 30, 2015

Jun 30, 2014

Net profit / (loss)

7,920,153

94,745

12,987,436

(318,707)

Share based compensation (non-cash)

362,031

334,099

714,369

687,954

Adjusted net profit

8,282,184

428,844

13,701,805

369,247

Adjusted net earnings per share, basic and diluted

0.318

0.016

0.527

0.016

Weighted average number of shares outstanding, basic and diluted

26,014,629

26,100,000

25,997,708

22,996,409

 

Forward Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, including, without limitation, Ardmore management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include:  the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for tanker vessel capacity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; the market for the Company's vessels; competition in the tanker industry; availability of financing and refinancing; charter counterparty performance; ability to obtain financing and comply with covenants in such financing arrangements; changes in governmental rules and regulations or actions taken by regulatory authorities; general domestic and international political conditions; potential disruption of shipping routes due to accidents, piracy or political events; vessels breakdowns and instances of off-hires; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Investor Relations Enquiries: Mr. Leon Berman The IGB Group 45 Broadway, Suite 1150 New York, NY 10006 Tel: 212-477-8438 Fax: 212-477-8636 Email: lberman@igbir.com

Or

Mr. Bryan Degnan The IGB Group 45 Broadway, Suite 1150 New York, NY 10006 Tel: 646-673-9701 Fax: 212-477-8636 Email: bdegnan@igbir.com

SOURCE Ardmore Shipping



RELATED LINKS

http://www.ardmoreshipping.com