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
- 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.
- 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
- 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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