Navigator Holdings Ltd. Preliminary Fourth Quarter and Financial Year 2014 Results
LONDON, March 17, 2015 /PRNewswire/ --
Highlights
• Navigator Holdings Ltd. (NYSE: NVGS) reports both record revenue of $78.4 million and net income of $24.3 million for the fourth quarter of 2014. Operating revenue amounted to $304.9 million and net income of $84.5 million for the full year ended December 31, 2014.
• EBITDA[1] increased to $161.3 million for the year ended December 31, 2014 from $106.8 million for 2013.
• Earnings per share basic increased to $1.53 for the year ended December 31, 2014 from $0.89 for 2013, based on an increased number of shares outstanding.
• Completed delivery of three newbuilding vessels, making our total fleet of 26 vessels on the water at December 31, 2014.
• Following the delivery of Navigator Triton on January 9, 2015, we have 11 remaining semi-refrigerated gas carrier newbuildings on order, for delivery between April 2015 and March 2017.
Fourth Quarter 2014 Financial Results Overview
Operating revenue for the three months ended December 31, 2014 was $78.4 million, an increase of $11.1 million, or 16.5%, when compared to the $67.3 million of operating revenue for the three months ended December 31, 2013. This increase was due to increases in the weighted average number of vessels; improvements in charter rates; an increase in vessel utilization; and an increase in the number of voyage charters undertaken relative to time charters.
During 2013, other cargo revenue related to the sale of a cargo of butane gas on-board Navigator Capricorn at the time of a fire in the engine room. This cargo was bought by us and later sold following the completion of repairs to the vessel. No such incident or activity occurred in the year ended December 31, 2014.
During the fourth quarter of 2014, the average time charter equivalent rate across the entire fleet, including our fully-refrigerated vessels was approximately $932,170 per calendar month ($30,646 per day), compared to $830,500 per calendar month ($27,300 per day) for the comparable period in 2013.
Fleet utilization across the 26 vessels operating at the year end increased to 94.8% for the fourth quarter of 2014, from 90.7% for the fourth quarter of 2013. This was primarily because in the fourth quarter of 2013, we had to reposition a number of the 11 vessels entering our fleet from AP Møller and we incurred 45 days off-hire due to the engine room fire on Navigator Capricorn.
- 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.
Net operating revenue, which is operating revenue less voyage expenses, amounted to $69.2 million for the three months ended December 31, 2014, up from $53.8 million for the same period in 2013. $7.2 million of the increase in net operating revenue resulted from an increase in charter rates; $5.2 million from having additional vessels in the fleet in 2014; and $3.0 million from an increase in vessel utilization.
Net income rose to $24.3 million for the three months ended December 31, 2014, or $0.44 per share, based on an increased weighted average number of basic shares outstanding of 55.3 million, up from $10.9 million or $0.22 per share for the same period in 2013.
EBITDA for the fourth quarter of 2014 was $44.1 million, compared to $30.0 million for the fourth quarter of 2013.
Year Ended December 31, 2014 Financial Results Overview:
Operating revenue for the year ended December 31, 2014 amounted to a record $304.9 million, an increase of $70.6 million compared to operating revenue of $234.3 million for the year ended December 31, 2013. Net operating revenue, which is operating revenue less voyage expenses, amounted to $259.9 million for the year ended December 31, 2014, an increase of $74.9 million on the year ended December 31, 2013.
At December 31, 2014, Navigator had 26 handysize liquefied gas carrier vessels in operation. In January 2015, we took delivery of one additional newbuilding. We have 11 additional newbuildings on order, which are expected to be delivered between April 2015 and March 2017.
Of the 26 vessels we operated as of December 21, 2014, 20 were employed under time charters and six were employed in the spot market. The 26 operated vessels earned an average time charter equivalent rate of approximately $912,124 per vessel per calendar month ($29,988 per day) during the year ended December 31, 2014, compared to approximately $859,600 per vessel per calendar month ($28,262 per day) for the year ended December 31, 2013.
Fleet utilization was 97.3% for the twelve months to December 31, 2014 compared to 92.9% for the full year of 2013.
Vessel operating expenses were $70.2 million for the year ended December 31, 2014, an increase of $14.2 on the year ended December 31, 2013, due to an increase in fleet size. Individual vessel operating expenses decreased by $47 per day, or 0.6%, to $8,068 per vessel per day for the year ended December 31, 2014, compared to $8,115 per vessel per day for the year ended December 31, 2013, primarily due our newly acquired vessels during 2014 being younger, and therefore, less expensive to maintain than our vessels owned in 2013.
Net income rose to $84.5 million for the year ended December 31, 2014, or $1.53 per share, based on a weighted average number of 55.3 million basic shares, compared to $41.0 million, or $0.89 per share, for the year ended December 31, 2013, based on a weighted average number of 46.0 million basic shares (following the 3-for-1 stock split that became effective as of October 29, 2013). As at December 31, 2014, there were 55,346,613 shares outstanding.
EBITDA for the year to December 31, 2014 was $161.3 million, compared with $106.8 million for the same period in 2013.
Conference Call Details:
Tomorrow, Wednesday, March 18, 2015, at 10:00 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), 0800-953-0329 (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, March 25, 2015 by dialing 1-866-247-4222
(US Toll Free Dial In), 0800-953-1533 (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 services 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 eleven newbuildings scheduled for delivery by the end of March 2017.
Navigator Gas
Attention: Investor Relations Department
Navigator Holdings Ltd.
Consolidated Balance Sheets
(Unaudited)
December 31, December 31,
2013 2014
Assets
Current assets
Cash and cash equivalents $ 194,740,045 $ 62,526,243
Accounts receivable, net 11,837,578 7,195,113
Accrued income 7,902,234 3,642,147
Prepaid expenses and other current assets 6,282,218 6,322,460
Inventories 5,924,201 4,810,597
Total current assets 226,686,276 84,496,560
Non-current assets
Long-term accounts receivable 316,559 198,036
Vessels in operation, net 1,026,226,551 1,145,066,299
Vessels under construction 60,197,486 131,344,599
Property, plant and equipment, net 363,015 283,916
Deferred finance costs, net 11,436,165 9,066,101
Total assets $ 1,325,226,052 $ 1,370,455,511
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 60,750,308 $ 58,350,308
Accounts payable 13,585,924 6,447,708
Accrued expenses and other liabilities 6,438,384 5,311,464
Accrued interest 4,261,971 3,011,465
Deferred income 4,803,196 7,095,310
Total current liabilities 89,839,783 80,216,255
Non-current liabilities
Secured term loan facilities, net of current portion 389,734,262 359,508,954
Senior unsecured bond 125,000,000 125,000,000
Total non-current liabilities 514,734,262 484,508,954
Commitments and contingencies
Stockholders' equity
Common stock - $.01 par value; 400,000,000 shares
authorized; 55,346,613 shares issued and outstanding,
(2013: 55,326,765 shares) 553,267 553,466
Additional paid-in capital 584,030,816 584,808,147
Accumulated other comprehensive loss (87,930 ) (254,666 )
Retained earnings 136,155,854 220,623,355
Total stockholders' equity 720,652,007 805,730,302
Total liabilities and stockholders' equity $ 1,325,226,052 $ 1,370,455,511
Navigator Holdings Ltd.
Consolidated Statements of Income
(Unaudited)
Three months ended Twelve months ended
December 31 December 31
2013 2014 2013 2014
Revenues
Operating revenue $ 67,255,388 $ 78,373,703 $ 234,286,550 $ 304,874,644
Other cargo revenue 4,051,060 - 4,051,060 -
71,306,448 78,373,703 238,337,610 304,874,644
Expenses
Address and brokerage
commissions 1,547,112 1,686,245 5,472,823 6,697,412
Voyage expenses 13,431,573 9,127,895 49,336,461 45,002,948
Cost of cargo sold 4,254,853 - 4,254,853 -
Charter-in costs 1,858,995 2,814,000 6,833,713 9,110,708
Vessel operating expenses 18,124,568 17,481,559 56,029,439 70,198,082
Depreciation and amortization 10,800,504 12,081,566 36,608,168 45,808,750
General and administrative costs 1,524,456 2,636,390 6,146,603 10,335,424
Other corporate expenses 568,670 509,422 3,496,368 2,259,116
Total operating expenses 52,110,731 46,337,077 168,178,428 189,412,440
Operating income 19,195,717 32,036,626 70,159,182 115,462,204
Other income / (expense)
Interest expense (8,214,217 ) (7,378,673 ) (28,767,858 ) (30,321,411 )
Interest income 40,450 3,377 98,775 230,234
Income before income taxes 11,021,950 24,661,330 41,490,099 85,371,027
Income taxes (140,641 ) (398,600 ) (506,263 ) (903,526 )
Net income $ 10,881,309 $ 24,262,730 $ 40,983,836 $ 84,467,501
Earnings per share:
Basic [(1)] $ 0.22 $ 0.44 $ 0.89 $ 1.53
Diluted [(1)] $ 0.22 $ 0.44 $ 0.89 $ 1.52
Weighted average number of
shares outstanding:
Basic [(1)] 49,830,243 55,342,184 46,031,386 55,336,402
Diluted [(1)] 49,830,243 55,561,565 46,031,386 55,483,478
(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 Comprehensive Income
(Unaudited)
Three months ended Twelve months ended
December 31 December 31
2013 2014 2013 2014
Net income $ 10,881,309 $ 24,262,730 $ 40,983,836 $ 84,467,501
Other Comprehensive Income /
(Loss):
Foreign currency translation
(loss) / gain 35,473 (37,779 ) 26,577 (166,736 )
Total Comprehensive Income $ 10,916,782 $ 24,224,951 $ 41,010,413 $ 84,300,765
Consolidated Statements of Stockholders' Equity
(Unaudited)
Common
Stock at Accumulated
0.01 Additional Other
par value Paid-in Comprehensive Retained
(1) Capital (1) Income (Loss) Earnings Total
January 1,
2013 $ 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
March 31, 2013 600 - - - 600
Restricte
shares issued
April 7, 2013 271 - - - 271
April 11, 2013 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
December 31,
2013 $ 553,267 $ 584,030,816 $ (87,930 ) $ 136,155,854 $ 720,652,007
Issuance of
common stock - (344,775 ) - - (344,775 )
Restricted
shares issued
April 14, 2014 124 - - - 124
Restricted
shares issued
November 21,
2014 50 - - - 50
Restricted
shares issued
December 1,
2014 25 - - - 25
Net income - - - 84,467,501 84,467,501
Foreign
currency
translation - - (166,736 ) - (166,736 )
Share-based
compensation
plan - 1,122,106 - - 1,122,106
December 31,
2014 $ 553,466 $ 584,808,147 $ (254,666 ) $ 220,623,355 $ 805,730,302
(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,
2013 2014
Cash flows from operating activities
Net income $ 40,983,836 $ 84,467,501
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation and amortization 36,608,168 45,808,750
Payment of drydocking costs (2,922,922 ) (5,320,488 )
Share-based compensation 728,589 1,122,305
Amortization of deferred financing costs 2,154,864 2,853,043
Unrealized foreign exchange 23,274 (155,602 )
Changes in operating assets and liabilities
Accounts receivable (7,963,729 ) 4,642,465
Inventories (1,102,855 ) 1,113,604
Prepaid expense and other current assets (2,276,611 ) 2,417,119
Accounts payable and other liabilities 12,894,233 (7,223,528 )
Long-term accounts receivable (316,559 ) 118,523
Net cash provided by operating activities 78,810,288 129,843,692
Cash flows from investing activities
Payment to acquire vessels (426,118,733 ) (3,502,791 )
Payment for vessels under construction (40,086,598 ) (226,795,499 )
Purchase of other property, plant and equipment (93,352 ) (108,868 )
Release of short-term investments 20,000,000 -
Placement of short-term investments (10,000,000 ) -
Insurance recoveries - 1,802,726
Net cash used in investing activities (456,298,683 ) (228,604,432 )
Cash flows from financing activities
Proceeds from secured term loan facilities 243,000,000 150,000,000
Direct financing costs of secured term loan facilities (6,866,564 ) (482,979 )
Repayment of secured term loan facilities (35,751,183 ) (182,625,308 )
Issuance costs of 9% senior unsecured bond (113,645 ) -
Proceeds from issuance of stock 246,570,000 -
Issuance costs of stock (15,480,485 ) (344,775 )
Net cash provided by (used in) financing activities 431,358,123 (33,453,062 )
Net increase (decrease) in cash and cash equivalents 53,869,728 (132,213,802 )
Cash and cash equivalents at beginning of year 140,870,317 194,740,045
Cash and cash equivalents at end of year $ 194,740,045 $ 62,526,243
Supplemental Information
Total interest paid during the year, net of amounts
capitalized $ 24,242,786 $ 28,718,874
Total tax paid during the year $ 171,056 $ 559,655
Appendix A
The following table sets forth a reconciliation of net income to EBITDA for the
periods presented:
Three months ended Twelve months ended
December 31 December 31
2013 2014 2013 2014
Net income $ 10,881,309 $ 24,262,730 $ 40,983,836 $ 84,467,501
Net interest expense 8,173,767 7,375,296 28,669,083 30,091,177
Income taxes 140,641 398,600 506,263 903,526
Depreciation and amortization 10,800,504 12,081,566 36,608,168 45,808,750
EBITDA $ 29,996,221 $ 44,118,192 $ 106,767,350 $ 161,270,954
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 11 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 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.
Contacts:
New York: 399 Park Avenue, 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
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