Navigator Holdings Ltd. Preliminary Third Quarter 2015 Results

Nov 10, 2015, 16:01 ET from Navigator Gas

LONDON, Nov. 10, 2015 /PRNewswire/ --

Highlights

  • Navigator Holdings Ltd. (NYSE: NVGS) reports revenue of $78.2 million for the three months ended September 30, 2015.
  • Net income was $22.7 million for the three months ended September 30, 2015 or an earnings per share of $0.41.
  • Navigator Aries was in dock for repairs throughout the entire quarter, following her collision in June 2015. Had Navigator Aries been operating at the contractual charter rate for the quarter, earnings would have been increased by $0.05.
  • Successfully completed the sale of one of our older vessels, Navigator Mariner, on August 3, 2015 for $32.6 million in cash.
  • EBITDA[1] increased 3.5% to $44.0 million for the three months ended September 30, 2015, notwithstanding Navigator Aries being out of service, and the sale of Navigator Mariner.
  • During the quarter, we took delivery of a further newbuilding vessel, Navigator Centauri, taking our total fleet to 28 vessels on the water at September 30, 2015.  Since the quarter end Navigator Ceres was delivered.
  • An existing order book of 8 semi-refrigerated gas carrier newbuildings, for delivery between January 2016 and March 2017.

A Form 6-K with detailed information on the third 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, Wednesday, November 11, 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 Wednesday, November 18, 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 eight 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 eight 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,

September 30,

2014

2015

Assets

(in thousands)

Current assets

Cash and cash equivalents

$

62,526

$

107,360

Accounts receivable, net

7,195

10,214

Accrued income

3,642

2,376

Prepaid expenses and other current assets

6,323

8,001

Inventories

4,811

3,766

Insurance recoverable

-

10,806

Total current assets

84,497

142,523

Non-current assets

Long-term accounts receivable

198

198

Vessels in operation, net

1,145,066

1,223,311

Vessels under construction

131,345

141,384

Property, plant and equipment, net

284

269

Deferred finance costs, net

9,066

7,382

Total assets

$

1,370,456

$

1,515,067

Liabilities and stockholders' equity

Current liabilities

Current portion of long-term debt

$

58,350

$

59,754

Accounts payable

6,448

4,226

Accrued expenses and other liabilities

5,312

6,732

Accrued interest

3,012

5,978

Deferred income

7,095

5,602

Total current liabilities

80,217

82,292

Non-current liabilities

Secured term loan facilities, net of current portion

359,509

429,885

Senior unsecured bond

125,000

125,000

Total non-current liabilities

484,509

554,885

Total liabilities

564,726

637,177

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

586,031

Accumulated other comprehensive loss

(254)

(330)

Retained earnings

220,623

291,635

Total stockholders' equity

805,730

877,890

Total liabilities and stockholders' equity

$

1,370,456

$

1,515,067

 

Navigator Holdings Ltd.

Consolidated Statements of Income

(Unaudited)

Three months ended

Nine months ended

September 30,

September 30,

(in thousands except share data)

(in thousands except share data)

2014

2015

2014

2015

Revenues

Operating revenue

$

80,612

$

78,215

$

226,501

$

236,553

Expenses

Address and brokerage commissions

1,765

1,655

5,011

5,191

Voyage expenses

13,818

9,187

35,875

27,362

Charter-in costs

2,097

-

6,297

-

Vessel operating expenses

17,623

20,379

52,717

57,692

Depreciation and amortization

11,532

12,949

33,727

38,860

General and administrative costs

2,415

2,742

7,699

8,096

Other corporate expenses

367

781

1,749

2,314

Profit from sale of vessel

-

(550)

(550)

Total operating expenses

49,617

47,143

143,075

138,965

Operating income

30,995

31,072

83,426

97,588

Other income/(expense)

Interest expense

(7,274)

(8,302)

(22,943)

(24,258)

Write off of deferred financing costs

-

-

-

(1,797)

Interest income

10

59

227

89

Income before income taxes

23,731

22,829

60,170

71,622

Income taxes

(72)

(160)

(505)

(610)

Net income

$

23,659

$

22,669

$

60,205

$

71,012

Earnings per share:

Basic:

$

0.43

$

0.41

$

1.09

$

1.28

Diluted:

$

0.43

$

0.41

$

1.09

$

1.28

Weighted average number of shares outstanding:

Basic:

55,339,113

55,363,467

55,334,454

55,358,837

Diluted:

55,566,168

55,741,907

55,475,844

55,694,039

                          

Navigator Holdings Ltd.

Consolidated Statements of Cash Flows

(Unaudited)

Nine months ended       

Nine months ended

    September 30,

    September 30,

2014

2015

(in thousands)

(in thousands)

Cash flows from operating activities

Net income

$

60,205

$

71,012

Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation and amortization

33,727

38,860

Payment of drydocking costs

(5,117)

(7,023)

Amortization of share-based compensation

782

1,223

Amortization of deferred financing costs

2,130

4,083

Unrealized foreign exchange

(11)

(69)

Profit on sale of vessel

-

(550)

Changes in operating assets and liabilities

Accounts receivable

5,639

(3,018)

Inventories

(22)

1,044

Accrued income and prepaid expenses and other current assets

(1,313)

(935)

Accounts payable, accrued interest and other liabilities

(2,273)

672

Net cash provided by operating activities

93,747

105,299

Cash flows from investing activities

Payment to acquire vessels

(648)

(2,076)

Payment for vessels under construction

(93,462)

(161,300)

Purchase of other property, plant and equipment

(113)

(94)

Receipt of shipyard penalty payments

-

1,276

Insurance recoveries

-

391

Proceeds from sale of vessel net of costs

-

31,958

Net cash used in investing activities

(94,223)

(129,845)

Cash flows from financing activities

Proceeds from secured term loan facilities

30,000

126,550

Direct financing costs of secured term loan facilities

(450)

(2,399)

Repayment of secured term loan facilities

(166,188)

(54,771)

Issuance costs of stock

(338)

-

Net cash (used in) / provided by financing activities

(136,976)

69,380

Net (decrease) / increase in cash and cash equivalents

(137,452)

44,834

Cash and cash equivalents at beginning of period

194,740

62,526

Cash and cash equivalents at end of period

$

57,288

$

107,360

Supplemental Information

Total interest paid during the period, net of amounts capitalized

$

19,184

$

18,925

Total tax paid during the period

$

396

$

491

Appendix A

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

 

Three months ended

Nine months ended

September 30,

September 30,

(in thousands) 

 (in thousands)

2014

2015

2014

2015

Net income

$

23,659

$

22,669

$

60,205

$

71,012

Net interest expense

7,264

8,243

22,176

25,966

Income taxes

72

160

505

610

Depreciation and amortization

11,532

12,949

33,727

38,860

EBITDA

$

42,527

$

44,021

$

117,153

$

136,448

 

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



RELATED LINKS

http://www.navigatorgas.com