Navigator Holdings Ltd. Preliminary Second Quarter 2015 Results
LONDON, August 3, 2015 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (NYSE: NVGS) reports revenue of $84.1 million for the three months ended June 30, 2015, up 10.6 % compared to the three months ended June 30, 2014.
- Net income increased to a record $26.3 million for the three months ended June 30, 2015, up 33.8 % compared to the three months ended June 30, 2014.
- Earnings per share strengthened to a record $0.48 for the three months ended June 30, 2015, compared to earnings per share of $0.36 for the three months ended June 30, 2014.
- EBITDA[1] increased 23.3 % to $47.7 million for the three months ended June 30, 2015 from $38.7 million for the three months ended June 30, 2014.
- Completed the delivery of another newbuilding vessel, Navigator Umbrio, on April 27, 2015, taking our total fleet to 28 vessels on the water at June 30, 2015.
- Completed the sale of one of our vessels, Navigator Mariner, on August 3, 2015 for $32.6 million.
- A current 10 semi-refrigerated gas carriers newbuildings on order, for delivery between August 2015 and March 2017.
- One of our vessels, Navigator Aries, was involved in a collision on June 28, 2015. Repair costs are expected to be recovered by our insurance. However, we do not have loss of hire insurance and therefore lost income for the duration of the repairs may not be recoverable.
A Form 6-K with detailed information on the second 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, Tuesday, August 4, 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 Tuesday, August 11, 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 ten 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 10 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, June 30,
2014 2015
(in
Assets thousands)
Current assets
Cash and cash equivalents $ 62,526 $ 66,225
Accounts receivable, net 7,195 10,639
Accrued income 3,642 8,382
Prepaid expenses and other
current assets 6,323 10,076
Inventories 4,811 5,949
Insurance recoverable - 6,000
Total current assets 84,497 107,271
Assets held for sale - 31,352
Non-current assets
Long-term accounts receivable 198 198
Vessels in operation, net 1,145,066 1,190,351
Vessels under construction 131,345 149,753
Property, plant and
equipment, net 284 258
Deferred finance costs, net 9,066 8,233
Total assets $ 1,370,456 $ 1,487,416
Liabilities and stockholders'
equity
Current liabilities
Current portion of long-term
debt $ 58,350 $ 66,304
Accounts payable 6,448 7,907
Accrued expenses and other
liabilities 5,312 6,603
Accrued interest 3,012 3,196
Deferred income 7,095 7,573
Total current liabilities 80,217 91,583
Non-current liabilities
Secured term loan facilities,
net of current portion 359,509 415,898
Senior unsecured bond 125,000 125,000
Total non-current liabilities 484,509 540,898
Total liabilities 564,726 632,481
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 584,808 585,598
Accumulated other
comprehensive loss (254) (184)
Retained earnings 220,623 268,967
Total stockholders' equity 805,730 854,935
Total liabilities and
stockholders' equity $ 1,370,456 $ 1,487,416
Navigator Holdings Ltd.
Consolidated Statements of Income
(Unaudited)
Three months ended Six months ended
June 30, June 30,
(in thousands except share (in thousands except
data) share data)
2014 2015 2014 2015
Revenues
Operating
revenue $ 76,063 $ 84,140 $ 145,889 $ 158,338
Expenses
Address and
brokerage
commissions 1,762 1,906 3,247 3,536
Voyage
expenses 12,171 11,304 22,057 18,175
Charter-in
costs 2,100 - 4,200 -
Vessel
operating
expenses 17,833 19,342 35,094 37,312
Depreciation
and
amortization 11,146 13,110 22,195 25,911
General and
administrati
ve costs 2,559 2,700 5,284 5,354
Other
corporate
expenses 922 1,170 1,381 1,533
Total
operating
expenses 48,493 49,532 93,458 91,821
Operating
income 27,570 34,608 52,431 66,517
Other
income/(expe
nse)
Interest
expense (7,820) (8,105) (15,669) (15,956)
Write off of
deferred
financing
costs - - - (1,797)
Interest
income 125 27 217 30
Income
before
income taxes 19,875 26,530 36,979 48,794
Income taxes (212) (215) (433) (450)
Net income $ 19,663 $ 26,315 $ 36,546 $ 48,344
Earnings per
share:
Basic: $ 0.36 $ 0.48 $ 0.66 $ 0.87
Diluted: $ 0.35 $ 0.47 $ 0.66 $ 0.87
Weighted average
number of shares
outstanding:
Basic: 55,337,349 55,363,467 55,332,086 55,356,483
Diluted: 55,535,396 55,741,907 55,431,657 55,669,709
Navigator Holdings Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended Six months ended
June 30, June 30,
2014 2015
(in thousands) (in thousands)
Cash flows from operating activities
Net income $ 36,546 $ 48,344
Adjustments to reconcile net income
to net cash
provided by operating activities
Depreciation and amortization 22,195 25,911
Payment of drydocking costs (2,278) (4,539)
Amortization of share-based
compensation 451 790
Amortization of deferred financing
costs 1,386 3,232
Unrealized foreign exchange 108 69
Changes in operating assets and
liabilities
Accounts receivable 4,993 (3,444)
Inventories (1,270) (1,139)
Accrued income and prepaid expenses
and other current assets (4,510) (7,168)
Accounts payable, accrued interest
and other liabilities (3,661) 3,414
Net cash provided by operating
activities 53,960 65,470
Cash flows from investing activities
Payment to acquire vessels (350) (1,868)
Payment for vessels under
construction (88,309) (122,831)
Purchase of other property, plant
and equipment (109) (40)
Receipt of shipyard penalty payments - 634
Insurance recoveries - 391
Net cash used in investing
activities (88,768) (123,714)
Cash flows from financing activities
Proceeds from secured term loan
facilities 30,000 95,400
Direct financing costs of secured
term loan facilities - (2,400)
Repayment of secured term loan
facilities (30,376) (31,057)
Issuance costs of stock (340) -
Net cash (used in) / provided by
financing activities (716) 61,943
Net (decrease) / increase in cash
and cash equivalents (35,524) 3,699
Cash and cash equivalents at
beginning of period 194,740 62,526
Cash and cash equivalents at end of
period $ 159,216 $ 66,225
Supplemental Information
Total interest paid during the
period, net of amounts capitalized $ 14,685 $ 14,336
Total tax paid during the period $ 327 $ 402
Appendix A
The following table sets forth a reconciliation of net income to EBITDA for the periods presented:
Three months ended Six months ended
June 30, June 30,
(in thousands) (in thousands)
2014 2015 2014 2015
Net income $ 19,663 $ 26,315 $ 36,546 $ 48,344
Net interest
expense 7,695 8,078 15,452 17,723
Income taxes 212 215 433 450
Depreciation
and
amortization 11,146 13,110 22,195 25,911
EBITDA $ 38,716 $ 47,718 $ 74,626 $ 92,428
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