Navigator Holdings Ltd. Preliminary Second Quarter 2015 Results

Aug 03, 2015, 16:02 ET from Navigator Gas

LONDON, August 3, 2015 /PRNewswire/ --

Highlights 

  • Navigator Holdings Ltd. (NYSE: NVGS) reports revenue of $84.1 million for the three months ended June 30, 2015, up 10.6 % compared to the three months ended June 30, 2014.
  • Net income increased to a record $26.3 million for the three months ended June 30, 2015, up 33.8 % compared to the three months ended June 30, 2014.
  • Earnings per share strengthened to a record $0.48 for the three months ended June 30, 2015, compared to earnings per share of $0.36 for the three months ended June 30, 2014.
  • EBITDA[1] increased 23.3 % to $47.7 million for the three months ended June 30, 2015 from $38.7 million for the three months ended June 30, 2014.
  • Completed the delivery of another newbuilding vessel, Navigator Umbrio, on April 27, 2015, taking our total fleet to 28 vessels on the water at June 30, 2015.
  • Completed the sale of one of our vessels, Navigator Mariner, on August 3, 2015 for $32.6 million.
  • A current 10 semi-refrigerated gas carriers newbuildings on order, for delivery between August 2015 and March 2017.
  • One of our vessels, Navigator Aries, was involved in a collision on June 28, 2015. Repair costs are expected to be recovered by our insurance. However, we do not have loss of hire insurance and therefore lost income for the duration of the repairs may not be recoverable.

A Form 6-K with detailed information on the second quarter 2015 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release.

[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. See Appendix A below for a reconciliation of EBITDA to net income, our most directly comparable financial measure calculated accordance with U.S. GAAP.

Conference Call Details: 

Tomorrow, Tuesday, August 4, 2015, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

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 Tuesday, August 11, 2015 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.

About Us 

Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders.  Navigator's fleet consists of 37 semi- or fully-refrigerated liquefied gas carriers, including ten newbuildings scheduled for delivery by March 2017.

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 10 newbuildings 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 other periodic 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.

Navigator Holdings Ltd. 

Consolidated Balance Sheets  

(Unaudited)  


   
                                         December 31,              June 30,
                                             2014                    2015
                                                      (in
    Assets                                            thousands)

    Current assets
    Cash and cash equivalents          $       62,526           $     66,225
    Accounts receivable, net                    7,195                 10,639
    Accrued income                              3,642                  8,382
    Prepaid expenses and other
    current assets                              6,323                 10,076
    Inventories                                 4,811                  5,949
    Insurance recoverable                           -                  6,000
    Total current assets                       84,497                107,271

    Assets held for sale                            -                 31,352

    Non-current assets
    Long-term accounts receivable                 198                    198
    Vessels in operation, net               1,145,066              1,190,351
    Vessels under construction                131,345                149,753
    Property, plant and
    equipment, net                                284                    258
    Deferred finance costs, net                 9,066                  8,233
    Total assets                       $    1,370,456           $  1,487,416
    Liabilities and stockholders'
    equity
    Current liabilities
    Current portion of long-term
    debt                               $       58,350           $     66,304
    Accounts payable                            6,448                  7,907
    Accrued expenses and other
    liabilities                                 5,312                  6,603
    Accrued interest                            3,012                  3,196
    Deferred income                             7,095                  7,573
    Total current liabilities                  80,217                 91,583

    Non-current liabilities
    Secured term loan facilities,
    net of current portion                    359,509                415,898
    Senior unsecured bond                     125,000                125,000
    Total non-current liabilities             484,509                540,898
    Total liabilities                         564,726                632,481
    Commitments and contingencies
    Stockholders' equity
    Common stock - $.01 par
    value;
    400,000,000 shares
    authorized; 55,363,467 shares
    issued and outstanding,
    (2014: 55,346,613)                            553                    554
    Additional paid-in capital                584,808                585,598
    Accumulated other
    comprehensive loss                          (254)                  (184)
    Retained earnings                         220,623                268,967
    Total stockholders' equity                805,730                854,935
    Total liabilities and
    stockholders' equity               $    1,370,456           $  1,487,416

Navigator Holdings Ltd. 

Consolidated Statements of Income  

(Unaudited)  


   

                              Three months ended                   Six months ended
                                   June 30,                            June 30,
                          (in thousands except share             (in thousands except
                                    data)                            share data)
                          2014                  2015           2014             2015

    Revenues
    Operating
    revenue         $    76,063       $           84,140  $    145,889      $      158,338

    Expenses
    Address and
    brokerage
    commissions           1,762                    1,906         3,247               3,536
    Voyage
    expenses             12,171                   11,304        22,057              18,175
    Charter-in
    costs                 2,100                        -         4,200                   -
    Vessel
    operating
    expenses             17,833                   19,342        35,094              37,312
    Depreciation
    and
    amortization         11,146                   13,110        22,195              25,911
    General and
    administrati
    ve costs              2,559                    2,700         5,284               5,354
    Other
    corporate
    expenses                922                    1,170         1,381               1,533

    Total
    operating
    expenses             48,493                   49,532        93,458              91,821

    Operating
    income               27,570                   34,608        52,431              66,517

    Other
    income/(expe
    nse)
    Interest
    expense             (7,820)                  (8,105)      (15,669)            (15,956)
    Write off of
    deferred
    financing
    costs                     -                        -             -             (1,797)
    Interest
    income                  125                       27           217                  30

    Income
    before
    income taxes         19,875                   26,530        36,979              48,794
    Income taxes          (212)                    (215)         (433)               (450)

    Net income      $    19,663       $           26,315  $     36,546      $       48,344

    Earnings per
    share:
    Basic:          $      0.36       $             0.48  $       0.66      $         0.87
    Diluted:        $      0.35       $             0.47  $       0.66      $         0.87

    Weighted average
    number of shares
    outstanding:
                     
    Basic:           55,337,349               55,363,467    55,332,086          55,356,483
                     
    Diluted:         55,535,396               55,741,907    55,431,657          55,669,709

Navigator Holdings Ltd. 

Consolidated Statements of Cash Flows  

(Unaudited)  

                                                 Six months ended       Six months ended


   
                                                 June 30,                June 30,
                                                    2014                    2015
                                               (in thousands)          (in thousands)

    Cash flows from operating activities
    Net income                                 $         36,546        $         48,344

    Adjustments to reconcile net income
    to net cash

    provided by operating activities
    Depreciation and amortization                        22,195                  25,911
    Payment of drydocking costs                         (2,278)                 (4,539)
    Amortization of share-based
    compensation                                            451                     790
    Amortization of deferred financing
    costs                                                 1,386                   3,232
    Unrealized foreign exchange                             108                      69
    Changes in operating assets and
    liabilities
    Accounts receivable                                   4,993                 (3,444)
    Inventories                                         (1,270)                 (1,139)
    Accrued income and prepaid expenses
    and other current assets                            (4,510)                 (7,168)
    Accounts payable, accrued interest
    and other liabilities                               (3,661)                   3,414

    Net cash provided by operating
    activities                                           53,960                  65,470

    Cash flows from investing activities
    Payment to acquire vessels                            (350)                 (1,868)
    Payment for vessels under
    construction                                       (88,309)               (122,831)
    Purchase of other property, plant
    and equipment                                         (109)                    (40)
    Receipt of shipyard penalty payments                      -                     634
    Insurance recoveries                                      -                     391

    Net cash used in investing
    activities                                         (88,768)               (123,714)

    Cash flows from financing activities
    Proceeds from secured term loan
    facilities                                           30,000                  95,400
    Direct financing costs of secured
    term loan facilities                                      -                 (2,400)
    Repayment of secured term loan
    facilities                                         (30,376)                (31,057)
    Issuance costs of stock                               (340)                       -

    Net cash (used in) / provided by
    financing activities                                  (716)                  61,943

    Net (decrease) / increase in cash
    and cash equivalents                               (35,524)                   3,699

    Cash and cash equivalents at
    beginning of period                                 194,740                  62,526

    Cash and cash equivalents at end of
    period                                     $        159,216        $         66,225

    Supplemental Information
    Total interest paid during the
    period, net of amounts capitalized         $         14,685        $         14,336

    Total tax paid during the period           $            327        $            402

Appendix A  

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


   

                           Three months ended                    Six months ended
                                June 30,                             June 30,
                            (in thousands)                        (in thousands)
                           2014                  2015           2014                  2015

    Net income   $       19,663        $       26,315  $      36,546        $       48,344
    Net interest
    expense               7,695                 8,078         15,452                17,723
    Income taxes            212                   215            433                   450
    Depreciation
    and
    amortization         11,146                13,110         22,195                25,911

    EBITDA       $       38,716        $       47,718  $      74,626        $       92,428

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

SOURCE Navigator Gas