Navigator Holdings Ltd. Preliminary Fourth Quarter and Financial Year 2013 Results

LONDON, March 17, 2014 /PRNewswire/ --


Highlights

  • Navigator Holdings Ltd. (NYSE: NVGS) reports revenue of $71.3 million and net income of $10.9 million for the fourth quarter of 2013, and revenue of $238.3 million and net income of $41.0 million for the year ended December 31, 2013
  • EBITDA[1] increased to $106.8 million for the year ended December 31, 2013 from $63.9 million for 2012
  • Earnings per share increased to $0.89 for the year ended December 31, 2013 from $0.82 for 2012, based on a significantly increased number of shares outstanding
  • Completed the acquisition and delivery of 11 vessels from affiliates of AP Moller Maersk
  • Completed initial public offering of 13,800,000 common shares, including full exercise of underwriters' option to purchase additional shares
  • Ten newbuilding semi-refrigerated gas carriers on order for delivery between April 2014 and April 2016

Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced its preliminary fourth quarter and Financial Year 2013 results.

Fourth  Quarter  2013  Financial  Results  Overview

Operating revenue for the three months ended December 31, 2013 was $71.3 million, an increase of $31.1 million, or 77.3%, when compared to the $40.2 million of operating revenue for the three months ended December 31, 2012.  This increase was primarily due to the additional eleven vessels acquired from AP Moller-Maersk during 2013, the last of which was delivered in October 2013, as well as improvements in charter rates, and was partially offset by a reduction in vessel utilization, contributed to by a fire in the engine room of Navigator Capricorn that caused the vessel to be out of service for 47 days in the fourth quarter of 2013.  

Other cargo revenue of $4.1 million represents the sale proceeds of a partial cargo of butane already loaded on board Navigator Capricorn when the engine room fire broke out. This butane cargo was bought by the Company from the charterer for $4.3 million, to enable the repairs to the vessel to be efficiently carried out, and as there were restrictions in re-importing the cargo into Russia, resulting in a loss of $204,000.

During the fourth quarter of 2013, the average time charter equivalent rate across the entire fleet, including our fully-refrigerated vessels was approximately $830,500 per calendar month ($27,300 per day), compared to $798,230 per calendar month ($26,243 per day) for the comparable period in 2012. The Company did not have any fully-refrigerated vessels during 2012.

Fleet utilization across the 24 vessels, including the chartered-in vessel, decreased to 90.7% for the fourth quarter of 2013, from 99.8% for the fourth quarter of 2012. Approximately half of the aggregate 203 days in which the vessels in the fleet did not earn income resulted from the fire on Navigator Capricorn, and from Navigator Leo having to ballast 41 days from South Korea to Northern Russia to take up a ten year charter. Additionally, six other vessels sailed in ballast to take up time charters during the fourth quarter of 2013 and there was some increased idle time.  

Net operating revenue, which is operating revenue less voyage expenses, amounted to $53.8 million for the three months ended December 31, 2013, up from $33.8 million for the same period in 2012.  $23.2 million of the increase in net operating revenue resulted from having additional vessels in the fleet in 2013 and $2.3 million resulted from an increase in charter rates.  The increase in net operating revenue was partially offset by a reduction of $5.5 million as a result of the decrease in vessel utilization.    

Vessel operating expenses increased by $9.5 million to $18.1 million for the three months ended December 31, 2013, from $8.6 million for the same period in 2012. This increase principally reflects the increased number of vessels in the fleet in 2013, as ownership days increased to 2,187 days for the three months ended December 31, 2013, compared to 1,288 days for the equivalent period of 2012.

Net income rose to $10.9 million for the three months ended December 31, 2013, or $0.22 per share, based on an increased weighted average number of shares outstanding of 49.8 million, up from $8.8 million or $0.23 per share for the same period in 2012.

EBITDA for the fourth quarter of 2013 was $30.0 million, compared to $18.1 million for the fourth quarter of 2012.

Year  Ended  December  31,  2013  Financial  Results  Overview:

Operating revenue for the year ended December 31, 2013 amounted to $234.3 million (excluding the cargo revenue mentioned above), an increase of $87.6 million compared to operating revenue of $146.7 million for the year ended December 31, 2012. Net operating revenue, which is operating revenue less voyage expenses, amounted to $185.0 million for the year ended December 31, 2013, an increase of $66.1 million on the year ended December 31, 2012.

At December 31, 2013, Navigator has 24 handysize liquefied gas carrier vessels in operation, including the one chartered-in vessel, and it has an additional ten vessels on order, which are expected to be delivered between April 2014 and April 2016.

At December 31, 2013, 13 of the 18 semi-refrigerated gas carriers operated by Navigator were on time charters at an average rate of approximately $910,000 per calendar month. The remaining semi-refrigerated vessels were trading on the spot market or on contracts of affreightment. For the fully-refrigerated gas carriers, the average rate for all charters undertaken by those vessels during 2013 was $778,000 per calendar month. The average time charter equivalent rate during 2013, across the entire fleet, was $859,635 per calendar month ($28,262 per day), compared to a rate of $779,490 per calendar month ($25,627 per day) during 2012.  All six fully-refrigerated gas carriers in the fleet are currently on time charter for original terms of between one and five years, at an average rate of $810,000.

Fleet utilization was 92.9% for the twelve months to December 31, 2013 compared to 99.5% for the full year of 2012.

Vessel operating expenses were $56.0 million for the year ended December 31, 2013, an increase of $23.2 million from the same period in 2012, primarily reflecting the increased number of vessels in the fleet in 2013, with a total ownership days of 7,168 days for the year ended December 31, 2013, compared to 4,663 days for the same period in 2012.

Net income rose to $41.0 million for the year ended December 31, 2013, or $0.89 per share, based on a weighted average number of 46.0 million shares outstanding at the end of 2013, (following the 3-for-1 stock split that became effective as of October 29, 2013), compared to $30.5 million, or $0.82 per share, for the year ended December 31, 2012, based on a weighted average number of 37.3 million shares outstanding at the end of 2012. As at December 31, 2013, there were 55,326,765 shares outstanding.

EBITDA for the year to December 31, 2013 was $106.8 million, compared with $63.9 million for the same period in 2012.

Tomorrow, Tuesday, March 18, 2014, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

Conference  Call  Details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.

A telephonic replay of the conference call will be available until March 25, 2014 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#

Audio  Webcast:

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (http://www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Navigator Gas

Attention: Investor Relations Department

New York:    399 Park Avenue, 38th Floor, New York, NY 10022. Tel: +1-212-355-5893

London:    21 Palmer Street, London, SW1H 0AD.    Tel: +44-(0)20-7340-4850

1. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is not a recognized measurement under U.S. GAAP. Please see Appendix A for a reconciliation to the most directly comparable GAAP financial measure.

 

Navigator  Holdings  Ltd.

Consolidated  Balance  Sheets

(Unaudited)


                      December 31, December 31,
                      2012         2013
    Assets

    Current assets
    Cash and cash
    equivalents       140,870,317  194,740,045
    Short-term
    investments       10,000,000   -
    Accounts
    receivable, net   3,873,849    11,837,578
    Accrued income    6,729,551    7,902,234
    Prepaid expenses
    and other current
    assets            5,079,652    6,282,218
    Inventories       4,821,346    5,924,201

    Total current
    assets            171,374,715  226,686,276

    Non-current
    assets
    Long-term
    accounts
    receivable        -            316,559

    Vessels in
    operation, net    586,660,699  1,026,226,551
    Deposit on vessel
    acquisitions      47,000,000   -
    Vessels under
    construction      20,110,888   60,197,486
    Property, plant
    and equipment,
    net               497,362      363,015
    Deferred finance
    costs, net        6,610,820    11,436,165

    Total assets      832,254,484  1,325,226,052

    Liabilities and
    stockholders'
    equity

    Current
    liabilities
    Current portion
    of long-term debt 26,842,508   60,750,308
    Accounts payable  7,943,797    13,585,924
    Accrued expenses
    and other
    liabilities       3,476,329    6,438,384
    Accrued interest  1,891,763    4,261,971
    Deferred income   2,883,352    4,803,196

    Total current
    liabilities       43,037,749   89,839,783

    Non-current
    liabilities
    Secured term loan
    facilities, net
    of current
    portion           216,393,245  389,734,262
    Senior unsecured
    bond              125,000,000  125,000,000

    Total non-current
    liabilities       341,393,245  514,734,262

    Commitments and
    contingencies

    Stockholders'
    equity
    Common stock -
    $.01 par value;
    400,000,000
    shares
    authorized;
    55,326,765 shares
    issued and
    outstanding,
    (2012: 38,694,648
    shares)(1)        386,946      553,267
    Additional
    paid-in capital   352,379,033  584,030,816
    Accumulated other
    comprehensive
    loss              -114,507     -87,930
    Retained earnings 95,172,018   136,155,854

    Total
    stockholders'
    equity            447,823,490  720,652,007

    Total liabilities
    and stockholders'
    equity            832,254,484  1,325,226,052

  1. All share amounts (except par value per share amounts) have been retroactively restated for 2012 to reflect the Company's 3-for-1 stock split that was effected as of October 29, 2013.

 


Navigator  Holdings  Ltd.

Consolidated  Statements  of  Income

(Unaudited)


                               Three months ended         Twelve months ended
                                      31-Dec                           31-Dec

                          2012          2013         2012                2013

    Revenues
    Operating
    revenue        $40,228,093   $67,255,388 $146,716,403        $234,286,550
    Other cargo
    revenue                  -     4,051,060            -           4,051,060

                    40,228,093    71,306,448  146,716,403         238,337,610
    Expenses
    Address and
    brokerage
    commissions      1,072,735     1,547,112    4,233,794           5,472,823
    Voyage
    expenses         6,476,699    13,431,573   27,790,816          49,336,461
    Cost of cargo
    sold                     -     4,254,853            -           4,254,853
    Charter-in
    costs            4,192,500     1,858,995   11,287,831           6,833,713
    Vessel
    operating
    expenses         8,556,967    18,124,568   32,826,651          56,029,439
    Depreciation
    and
    amortization     6,334,558    10,800,504   24,179,633          36,608,168
    General and
    administrative
    costs            1,565,127     1,524,456    5,273,540           6,146,603
    Other
    corporate
    expenses           308,861       568,670    1,401,808           3,496,368

    Total
    operating
    expenses        28,507,447    52,110,731  106,994,073         168,178,428

    Operating
    income          11,720,646    19,195,717   39,722,330          70,159,182

    Other income /
    (expense)
    Interest
    expense         -2,789,819    -8,214,217   -8,735,952         -28,767,858
    Interest
    income              28,954        40,450       64,590              98,775

    Income before
    income taxes     8,959,781    11,021,950   31,050,968          41,490,099
    Income taxes      -138,418      -140,641     -515,123            -506,263

    Net income      $8,821,363   $10,881,309  $30,535,845         $40,983,836

    Earnings per
    share:
    Basic and
    diluted (1)           0.23          0.22         0.82                0.89

    Weighted
    average number
    of shares
    outstanding:
    Basic and
    diluted (1)     38,694,648    49,830,243   37,294,962          46,031,386

    (1) All share
    amounts
    (except par
    value per
    share amounts)
    have been
    retroactively
    restated for
    2012 to
    reflect the
    Company's
    3-for-1 stock
    split that was
    effected as of
    October 29,
    2013.
  1. All share amounts (except par value per share amounts) have been retroactively restated for 2012 to reflect the Company's 3-for-1 stock split that was effected as of October 29, 2013.


Navigator  Holdings  Ltd.

Consolidated  Statements  of  Comprehensive  Income

(Unaudited)


                      Three months ended       Twelve months ended
                            31-Dec                   31-Dec

                      2012        2013          2012         2013

    Net income     $8,821,363  $10,881,309   $30,535,845  $40,983,836

    Other
    Comprehensive
    Income /
    (Loss):
    Foreign
    currency
    translation
    (loss) / gain   -14,405      35,473        32,166       26,577

    Total
    Comprehensive
    Income         $8,806,958  $10,916,782   $30,568,011  $41,010,413

    Consolidated
    Statements of
    Stockholders'
    Equity
    (Unaudited)
                                                  Accumulated
                         Common      Additional      Other
                      Stock at 0.01   Paid-in    Comprehensive   Retained
                      par value (1) Capital (1)  Income (Loss)   Earnings      Total
            01-Jan-12   $329,893    $304,789,579   -$146,673   $67,055,392  372,028,191

    Issuance of
    common stock         56,250      46,793,497        -            -        46,849,747
    Restricted shares
    issued
            22-Feb-12      503           -             -            -           503
    Restricted shares
    issued
            24-Apr-12      300           -             -            -           300
    Net income              -            -             -        30,535,845   30,535,845
    Dividends paid          -            -             -        -2,419,219   -2,419,219
    Foreign currency
    translation             -            -          32,166          -          32,166
    Share-based
    compensation plan       -         795,957          -            -         795,957

            31-Dec-12    386,946    352,379,033    -$114,507    95,172,018  447,823,490

    Issuance of
    common stock         165,300    230,924,215        -            -       231,089,515
    Restricted shares
    issued
            31-Mar-13      600           -             -            -           600
    Restricted shares
    issued
            07-Apr-13      271           -             -            -           271
    Restricted shares
    issued
            11-Apr-13      150           -             -            -           150
    Net income              -            -             -        40,983,836   40,983,836
    Foreign currency
    translation             -            -          26,577          -          26,577
    Share-based
    compensation plan       -         727,568          -            -         727,568

            31-Dec-13    553,267    $584,030,816   -$87,930    $136,155,854 $720,652,007
  1. All share amounts (except par value per share amounts) have been retroactively restated to reflect the Company's 3-for-1 stock split that was effected as of October 29, 2013.


Navigator  Holdings  Ltd.

Consolidated  Statements  of  Cash  Flows

(Unaudited)


                                                           Year ended     Year ended
                                                           December 31,  December 31,
                                                                  2012          2013
    Cash flows from operating activities
    Net income                           $                  30,535,845    40,983,836
    Adjustments to reconcile net income to net cash
    provided by operating activities
    Depreciation and amortization                           24,179,633    36,608,168
    Payment of drydocking costs                                      -    -2,922,922
    Share-based compensation                                   796,760       728,589
    Amortization of deferred financing costs                   959,210     2,154,864
    Unrealized foreign exchange                                 27,489        23,274
    Changes in operating assets and liabilities
    Accounts receivable                                     -2,570,404    -7,963,729
    Inventories                                               -372,516    -1,102,855
    Accrued income and prepaid expenses and other
    current assets                                          -6,381,560    -2,276,611
    Accounts payable, accrued interest and other
    liabilities                                              7,787,706    12,894,233
    Long-term accounts receivable                                    -      -316,559

    Net cash provided by operating activities               54,962,163    78,810,288

    Cash flows from investing activities
    Payment to acquire vessels                            -147,454,659  -426,118,733
    Payment for vessels under construction                 -44,931,101   -40,086,598
    Purchase of other property, plant and equipment           -403,739       -93,352
    Release of short-term investments                                -    20,000,000
    Placement of short-term investments                    -10,000,000   -10,000,000

    Net cash used in investing activities                 -202,789,499  -456,298,683

    Cash flows from financing activities
    Proceeds from secured term loan facilities             206,528,261   243,000,000
    Direct financing costs of secured term loan facilities   2,700,000    -6,866,564
    Repayment of secured term loan facilities             -107,649,916   -35,751,183
    Proceeds from 9% senior unsecured bond                 125,000,000             -
    Issuance costs of 9% senior unsecured bond              -3,645,655      -113,645
    Proceeds from issuance of stock                         46,875,000   246,570,000
    Issuance costs of stock                                    -25,253   -15,480,485
    Dividends paid                                          -2,419,219             -

    Net cash provided by financing activities              261,963,218   431,358,123

    Net increase in cash and cash equivalents              114,135,882    53,869,728

    Cash and cash equivalents at beginning of year          26,734,435   140,870,317

    Cash and cash equivalents at end of year               140,870,317   194,740,045

    Supplemental Information
    Total interest paid during the year, net of amounts
    capitalized                                              6,166,338    24,242,786

    Total tax paid during the year                             165,105       171,056


Appendix  A

The following table sets forth a reconciliation of net income to EBITDA for the periods presented:


                                    Three months ended      Twelve months ended
                                          31-Dec                   31-Dec

                                  2012        2013        2012        2013

    Net income                    $8,821,363  $10,881,309 $30,535,845 $40,983,836
    Net interest expense          2,760,865   8,173,767   8,671,362   28,669,083
    Income taxes                  138,418     140,641     515,123     506,263
    Depreciation and amortization 6,334,558   10,800,504  24,179,633  36,608,168

    EBITDA                        $18,055,204 $29,996,221 $63,901,963 $106,767,350


FORWARD  LOOKING  STATEMENTS

Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:

   future operating or financial results;
   pending acquisitions, business strategy and expected capital spending;
   operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;
   general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;
   our financial condition and liquidity, including our ability to obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;
   estimated future capital expenditures needed to preserve our capital base;
   our expectations about the receipt of our ten newbuildings and, if exercised, our option newbuilding, and the timing of the receipt thereof;
   our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or the useful lives of our vessels;
   our continued ability to enter into long-term, fixed-rate time charters with our customers;
   changes in governmental rules and regulations or actions taken by regulatory authorities;
   potential liability from future litigation;
   our expectations relating to the payment of dividends; and
   other factors discussed in Navigators filings with the U.S. Securities and Exchange Commission.

We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.


SOURCE Navigator Holdings Ltd



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