Navigator Holdings Ltd. Preliminary Third Quarter 2017 Results
LONDON, Nov. 8, 2017 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (NYSE: NVGS) (the "Company") reported operating revenue of $70.2 million for the three months ended September 30, 2017.
- EBITDA(1) was $27.1 million for the three months ended September 30, 2017.
- Earnings were a net loss of $1.1 million for the three months ended September 30, 2017, or $0.02 loss per share.
- Took delivery of Navigator Jorf, a 38,000 cbm fully-refrigerated vessel from HMD on July 20, 2017. The vessel commenced a ten year time charter on August 22, 2017.
- Earlier today, we took delivery of Navigator Prominence, a 37,300 cubic meter semi-refrigerated gas carrier and our final newbuilding. We drew down $51.2 million from a bank loan facility to partially finance the delivery installment.
- We continue to see strong demand for the proposed ethylene marine export terminal on the Houston Ship Channel, the proposed joint venture with Enterprise Product Partners L.P. announced in July.
Charter revenue from spot voyages remained significantly focused on the petrochemical sector, with the transportation of petrochemicals accounting for 96% of our spot revenue for the three months ended September 30, 2017. Typically, the summer months offer fewer opportunities in the LPG freight markets as was the case during the summer of 2017, which reflect a continuing lack of LPG and petrochemical arbitrage between producing and consuming areas. Our charter rates achieved during the quarter reflect a premium to those available to the general market as a result of our strategic positioning of seeking a mixed portfolio of customers and charter durations across the gas spectrum of LPG, petrochemicals and ammonia.
We delivered our first 38,000 cbm fully-refrigerated ammonia carrier to our partner, Office Cherifien des Phosphates ("OCP") on August 22, 2017, commencing a ten year time charter facilitating the transportation of ammonia from Europe and the U.S. to Morocco. We are also now discussing charter and contract of affreightment renewals with a number of charterers for at least eight vessels with contracts maturing over the coming months.
1 EBITDA is a non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating the operating performance of the Company. EBITDA does not represent and should not be considered as an alternative to any financial measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation of EBITDA to net income, our most directly comparable financial measure calculated accordance with U.S. GAAP.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA for the three months ended September 30, 2017:
| $'000's |
|
| Net loss |
$ (1,093) |
| Interest expense |
9,426 |
| Interest income |
(139) |
| Income taxes |
102 |
| Depreciation and amortization |
18,787 |
| EBITDA |
$ 27,083 |
A Form 6-K with more detailed information on our third quarter 2017 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended September 30, 2017.
Conference Call Details:
Tomorrow, Thursday, November 9, 2017, 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.
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Thursday, November 16, 2017 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#
Navigator Gas
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.
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;
- fluctuations in currencies and interest rates;
- 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 refinance our indebtedness as it matures or 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 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;
- our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management;
- our ability to enter into a definitive agreement with Enterprise regarding the proposed joint development of an ethylene marine export terminal on the Houston Ship Channel, our expectations regarding the ability to obtain sufficient long-term customer commitments for such terminal, our expectations regarding financing of our proposed investment in such terminal and our expectations regarding the financial success of such terminal; and
- other factors detailed from time to time in other periodic reports we file with the 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, |
|
| (in thousands except share data) |
||
| Assets |
||
| Current assets |
||
| Cash and cash equivalents |
$ 57,272 |
$ 35,138 |
| Short-term investments |
— |
25,000 |
| Accounts receivable, net |
7,059 |
17,149 |
| Accrued income |
13,134 |
10,250 |
| Prepaid expenses and other current assets |
8,541 |
11,552 |
| Bunkers and lubricant oils |
6,937 |
7,507 |
| Insurance recoverable |
855 |
370 |
| Total current assets |
93,798 |
106,966 |
| Non-current assets |
||
| Vessels in operation, net |
1,480,359 |
1,673,139 |
| Vessels under construction |
150,492 |
28,591 |
| Property, plant and equipment, net |
194 |
1,605 |
| Total non-current assets |
1,631,045 |
1,703,335 |
| Total assets |
$ 1,724,843 |
$ 1,810,301 |
| Liabilities and stockholders' equity |
||
| Current liabilities |
||
| Current portion of long-term debt, net of deferred financing costs |
$ 78,464 |
$ 85,011 |
| Senior unsecured bond |
25,000 |
— |
| Accounts payable |
6,388 |
8,057 |
| Accrued expenses and other liabilities |
11,377 |
11,208 |
| Accrued interest |
2,932 |
1,577 |
| Deferred income |
3,522 |
1,432 |
| Total current liabilities |
127,683 |
107,285 |
| Non-current liabilities |
||
| Secured term loan facilities, net of current portion and deferred financing costs |
540,680 |
641,266 |
| Senior unsecured bond |
100,000 |
100,000 |
| Total non-current liabilities |
640,680 |
741,266 |
| Total liabilities |
768,363 |
848,551 |
| Commitments and contingencies (see note 9) |
||
| Stockholders' equity |
||
| Common stock—$.01 par value; 400,000,000 shares authorized; |
554 |
555 |
| Additional paid-in capital |
588,024 |
589,142 |
| Accumulated other comprehensive loss |
(287) |
(35) |
| Retained earnings |
368,189 |
372,088 |
| Total stockholders' equity |
956,480 |
961,750 |
| Total liabilities and stockholders' equity |
$ 1,724,843 |
$ 1,810,301 |
| Navigator Holdings Ltd. |
||||
| Consolidated Statements of Income |
||||
| (Unaudited) |
||||
| Three months ended |
Nine months ended |
|||
| 2016 |
2017 |
2016 |
2017 |
|
| Revenues |
||||
| Operating revenue |
$ 69,741 |
$ 70,211 |
$ 218,657 |
$ 221,911 |
| Expenses |
||||
| Brokerage commissions |
1,372 |
1,191 |
4,382 |
4,105 |
| Voyage expenses |
11,869 |
12,246 |
28,287 |
40,761 |
| Vessel operating expenses |
22,126 |
25,106 |
68,243 |
74,012 |
| Depreciation and amortization |
15,804 |
18,787 |
45,655 |
54,725 |
| General and administrative costs |
3,120 |
3,932 |
9,180 |
10,262 |
| Other corporate expenses |
377 |
653 |
1,610 |
1,605 |
| Write off of insurance claim receivable |
504 |
— |
504 |
— |
| Total operating expenses |
55,172 |
61,915 |
157,861 |
185,470 |
| Operating income |
14,569 |
8,296 |
60,796 |
36,441 |
| Other income/(expense) |
||||
| Interest expense |
(7,957) |
(9,426) |
(23,442) |
(27,724) |
| Write off of deferred financing costs |
— |
— |
— |
(1,281) |
| Write off of call premium and redemption charges on 9% unsecured bond |
— |
— |
— |
(3,517) |
| Interest income |
71 |
139 |
240 |
371 |
| Income/(Loss) before income taxes |
6,683 |
(991) |
37,594 |
4,290 |
| Income taxes |
(207) |
(102) |
(602) |
(391) |
| Net income/(Loss |
$ 6,476 |
$ (1,093) |
$ 36,992 |
$ 3,899 |
| Earnings/(Loss) per share: |
||||
| Basic |
$ 0.12 |
$ (0.02) |
$ 0.67 |
$ 0.07 |
| Diluted |
$ 0.12 |
$ (0.02) |
$ 0.66 |
$ 0.07 |
| Weighted average number of shares outstanding: |
||||
| Basic |
55,437,695 |
55,531,831 |
55,413,855 |
55,531,831 |
| Diluted |
55,812,935 |
55,905,571 |
55,790,240 |
55,877,163 |
| Navigator Holdings Ltd. |
||
| Consolidated Statements of Cash Flows |
||
| (Unaudited) |
||
| Nine Months ended |
Nine Months ended |
|
| (in thousands) |
(in thousands) |
|
| Cash flows from operating activities |
||
| Net income |
$ 36,992 |
$ 3,899 |
| Adjustments to reconcile net income to net cash provided by operating activities |
||
| Depreciation and amortization |
45,655 |
54,725 |
| Payment of drydocking costs |
(9,729) |
(401) |
| Insurance claim debtor |
167 |
— |
| Call option premium on redemption of 9.00% unsecured bond |
— |
2,500 |
| Prior year expenses recovered in insurance claim |
— |
(504) |
| Amortization of share-based compensation |
1,186 |
1,117 |
| Amortization of deferred financing costs |
2,233 |
3,107 |
| Unrealized foreign exchange |
84 |
243 |
| Changes in operating assets and liabilities |
||
| Accounts receivable |
(1,586) |
(10,090) |
| Bunkers and lubricant oils |
(3,269) |
(570) |
| Accrued income and prepaid expenses and other current assets |
(5,009) |
(125) |
| Accounts payable, accrued interest and other liabilities |
(7,970 ) |
(1,946 ) |
| Net cash provided by operating activities |
58,754 |
51,955 |
| Cash flows from investing activities |
||
| Payment to acquire vessels |
(1,372) |
(1,112) |
| Payment for vessels under construction |
(158,403) |
(124,149) |
| Purchase of other property, plant and equipment |
(42) |
(1,623) |
| Receipt of shipyard penalty payments |
417 |
280 |
| Insurance recoveries |
4,700 |
990 |
| Capitalized costs for the repairs of Navigator Aries |
(8,732) |
— |
| Placement of short term investment |
— |
(25,000) |
| Net cash used in investing activities |
(163,432) |
(150,614) |
| Cash flows from financing activities |
||
| Proceeds from secured term loan facilities |
116,970 |
333,983 |
| Issuance of 7.75% senior unsecured bonds |
— |
100,000 |
| Repayment of 9.00% senior unsecured bonds |
— |
(127,500) |
| Issuance costs of 7.75% senior unsecured bonds |
— |
(1,819) |
| Direct financing costs of senior term loan facilities |
(155) |
(2,054) |
| Repayment of secured term loan facilities |
(50,069) |
(226,085) |
| Net cash provided by financing activities |
66,746 |
76,525 |
| Net decrease in cash and cash equivalents |
(37,932) |
(22,134) |
| Cash and cash equivalents at beginning of period |
87,779 |
57,272 |
| Cash and cash equivalents at end of period |
$ 49,847 |
$ 35,138 |
| Supplemental Information |
||
| Total interest paid during the period, net of amounts capitalized |
$ 21,997 |
$ 22,108 |
| Total tax paid during the period |
$ 454 |
$ 428 |
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44(0)20-7340-4850
SOURCE Navigator Gas
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