Navigator Holdings Ltd. Preliminary First Quarter 2016 Results

May 09, 2016, 17:55 ET from Navigator Gas

LONDON, May 9, 2016 /PRNewswire/ --

Highlights 

  • Navigator Holdings Ltd. (NYSE: NVGS) reports revenue of $76.4 million for the three months ended March 31, 2016.
  • Net income was $19.4 million for the three months ended March 31, 2016 or an earnings per share of $0.35.
  • During the quarter, we took delivery of a further newbuilding vessel, Navigator Ceto, taking our total fleet to 30 vessels on the water at March 31, 2016.
  • EBITDA was $41.9 million for the three months ended March 31, 2016.
  • On January 27, 2016, Navigator Aries left Keppel Shipyard in Singapore following the completion of repairs required as a result of the collision that it was involved in near Surabaya, Indonesia in June 2015. On March 22, 2016, Navigator Aries entered into a two year time charter with Pertamina.
  • On April 14, 2016 Navigator Copernico was delivered. An existing order book of six semi-refrigerated and one fully refrigerated gas carrier newbuildings, are due for delivery between August 2016 and July 2017.

A Form 6-K with detailed information on the first quarter 2016 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, May 10, 2016, 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, May 17, 2016 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 38 semi- or fully-refrigerated liquefied gas carriers, including seven newbuildings scheduled for delivery by July 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 seven 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,                 March 31,
                                                      2015                      2016
    Assets                                         (in thousands except share data)

    Current assets
    Cash and cash equivalents          $           87,779           $         77,131
    Accounts receivable, net                        9,050                     11,258
    Accrued income                                  5,647                      7,701
    Prepaid expenses and other
    current assets                                  8,754                     13,077
    Inventories                                     3,480                      4,677
    Insurance recoverable                          10,289                      6,007
    Total current assets                          124,999                    119,851

    Non-current assets
    Vessels in operation, net                   1,264,451                  1,307,161
    Vessels under construction                    170,776                    163,365
    Property, plant and
    equipment, net                                    279                        256
    Total non-current assets                    1,435,506                  1,470,782
    Total assets                       $        1,560,505           $      1,590,633
    Liabilities and stockholders'
    equity
    Current liabilities
    Current portion of long-term
    debt, net of deferred
    financing costs                    $           59,024           $         61,391
    Accounts payable                               11,471                      5,498
    Accrued expenses and other
    liabilities                                     9,065                     10,116
    Accrued interest                                3,117                      5,943
    Deferred income                                 6,606                      3,354
    Total current liabilities                      89,283                     86,302

    Non-current liabilities
    Secured term loan facilities,
    net of current portion and
    deferred financing costs                      436,131                    449,440
    Senior unsecured bond                         125,000                    125,000
    Total non-current liabilities                 561,131                    574,440
    Total liabilities                             650,414                    660,742
    Commitments and contingencies
    Stockholders' equity
    Common stock - $.01 par
    value;
    400,000,000 shares
    authorized; 55,426,872 shares
    issued and outstanding,
    (2014: 55,346,467)                                554                        554
    Additional paid-in capital                    586,451                    586,846
    Accumulated other
    comprehensive loss                              (465)                      (454)
    Retained earnings                             323,551                    342,945
    Total stockholders' equity                    910,091                    929,891
    Total liabilities and
    stockholders' equity               $        1,560,505           $      1,590,633

Navigator Holdings Ltd. 

Consolidated Statements of Income  

(Unaudited)  


   

                                                Three months ended
                                                     March 31,
                                         (in thousands except share data)
                                            2015                                      2016

    Revenues
    Net operating
    revenue            $                  74,197             $                      76,375

    Expenses
    Brokerage
    commissions                           1, 630                                     1,502
    Voyage
    expenses                               6,871                                     7,093
    Vessel
    operating
    expenses                              17,971                                    22,405
    Depreciation
    and
    amortization                          12,800                                    14,575
    General and
    administrative
    costs                                  2,654                                     2,957
    Other
    corporate
    expenses                                 363                                       550

    Total
    operating
    expenses                              42,289                                    49,082

    Operating
    income                                31,908                                    27,293

    Other
    income/(expens
    e)
    Interest
    expense                              (6,797)                                   (7,783)
    Write off of
    deferred
    finance costs                        (1,797)                                         -
    Interest
    income                                     4                                        78

    Income before
    income taxes                          23,318                                    19,588
    Income taxes                           (234)                                     (194)

    Net income         $                  23,084             $                      19,394

    Earnings per
    share:
    Basic:             $                    0.42             $                        0.35
    Diluted:           $                    0.42             $                        0.35

    Weighted average
    number of shares
    outstanding:
    Basic:                            55,349,422                                55,365,557
    Diluted:                          55,598,958                                55,743,997

Navigator Holdings Ltd. 

Consolidated Statements of Cash Flows  

(Unaudited)  

        Three months ended                         Three months ended


   
                                                       March 31,               March 31,
                                                           2015                    2016
                                                 (in thousands)          (in thousands)

    Cash flows from operating activities
    Net income                                 $         23,084        $         19,394

    Adjustments to reconcile net income
    to net cash

    provided by operating activities
    Depreciation and amortization                        12,800                  14,575
    Payment of drydocking costs                              56                 (2,030)
    Insurance claim debtor                                    -                   (418)
    Amortization of share-based
    compensation                                            347                     395
    Amortization of deferred financing
    costs                                                 2,498                     732
    Unrealized foreign exchange                           (236)                      17
    Changes in operating assets and
    liabilities
    Accounts receivable                                    (76)                 (2,208)
    Inventories                                           (957)                 (1,197)
    Accrued income and prepaid expenses
    and other current assets                           (10,881)                 (6,795)
    Accounts payable, accrued interest
    and other liabilities                                 1,091                 (5,347)

    Net cash provided by operating
    activities                                           27,726                  17,118

    Cash flows from investing activities
    Payment to acquire vessels                            (300)                   (247)
    Payment for vessels under
    construction                                       (52,165)                (39,212)
    Purchase of other property, plant
    and equipment                                          (22)                    (17)
    Receipt of shipyard penalty payments                      -                     417
    Insurance recoveries                                    257                   4,700
    Capitalized costs for the repair of
    Navigator Aries                                           -                 (8,351)

    Net cash used in investing
    activities                                         (52,230)                (42,710)

    Cash flows from financing activities
    Proceeds from secured term loan
    facilities                                           30,000                  31,150
    Direct financing costs of secured
    term loan facilities                                (2,296)                   (155)
    Repayment of secured term loan
    facilities                                         (15,213)                (16,051)

    Net cash (used in) / provided by
    financing activities                                 12,491                  14,944

    Net (decrease) / increase in cash
    and cash equivalents                               (12,013)                (10,648)

    Cash and cash equivalents at
    beginning of period                                  62,526                  87,779

    Cash and cash equivalents at end of
    period                                     $         50,513        $         77,131

    Supplemental Information
    Total interest paid during the
    period, net of amounts capitalized         $          4,122        $          5,527

    Total tax paid during the period           $             73        $             77

Appendix A  

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


   

                                                         Three months ended
                                                             March 31,
                                                           (in thousands)
                                              2015                                 2016

    Net income          $                   23,084                $              19,394  $
    Net interest
    expense                                  8,590                                7,705
    Income taxes                               234                                  194
    Depreciation and
    amortization                            12,800                               14,575

    EBITDA              $                   44,708                $              41,868  $

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