Navigator Holdings Ltd. Preliminary Third Quarter 2015 Results

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Nov 10, 2015, 04:01 ET

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