STEALTHGAS INC. Reports First Quarter 2019 Financial and Operating Results
ATHENS, Greece, May 23, 2019 (GLOBE NEWSWIRE) -- STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the first quarter ended March 31, 2019.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Operational utilization of 98.8% in Q1 19’ (93.3% in Q1 18’), an excellent performance as commercial off hire days were as low as 1 day per vessel. This marks our best performance since Q2 2008.
- Fleet calendar days down 10.6% quarter over quarter to 4,327 days attributed to our recent strategic fleet contraction.
- About 71% of fleet employment coverage for 2019, with approximately $124 million in future contracted charter revenues.
- Further addition of two small LPG vessels from StealthGas, to our recently formed JV structure, bringing the total to four vessels.
- Voyage revenues of $38.4 million in Q1 19’, a decrease of $1.3 million compared to Q1 18’, given 512 (or 10.6%) fewer fleet calendar days.
- Voyage revenues per fleet calendar day of close to $8,900 in Q1 19’- an 8.3% increase compared to the same period of last year- as a result of improved performance and higher market rates.
- Daily TCE in Q1 19’ increased by 13% compared to the same period of last year.
- Adjusted EBITDA of $17.2 million in Q1 19’ - a $3.5 million increase compared to Q1 18’.
- Net Income of $2.0 million in Q1 19’ versus a $5.8 million loss in the same period of last year.
- Low gearing as debt to assets stands at 40.4% while net debt ratio is as low as 32.9%.
- Cash on hand of $74.8 million, an increase of $10.3 million compared to year end 2018.
First Quarter 2019 Results:
- Revenues for the three months ended March 31, 2019 amounted to $38.4 million, a decrease of $1.3 million, or 3.3%, compared to revenues of $39.7 million for the three months ended March 31, 2018, mainly as a result of our fleet contraction as we had 512 less fleet calendar days.
- Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2019 were $3.8 million and $12.9 million respectively, compared to $5.6 million and $15.4 million respectively, for the three months ended March 31, 2018. The $1.8 million decrease in voyage expenses was mainly attributed to an approximate 44% decrease in our spot days and the minimal ballasting costs incurred during the first quarter of 2019. The 16.2% decrease in vessels’ operating expenses compared to the same period of 2018 was mostly a result of our recent fleet contraction and reduction of our maintenance costs.
- Drydocking costs for the three months ended March 31, 2019 and 2018 were $0.2 million and $1.5 million, respectively. The costs for the first quarter of 2019 mainly related to the docking survey of one small LPG vessel, while the costs for the same period of last year related to the drydocking of 3 vessels.
- Depreciation for the three months ended March 31, 2019 was $9.5 million, a $1.0 million decrease from $10.5 million for the same period of last year due to the reduced number of owned vessels.
- As a result of the above, for the three months ended March 31, 2019, the Company reported a net income of $2.0 million, compared to a net loss of $5.8 million for the three months ended March 31, 2018. The weighted average number of shares for the three months ended March 31, 2019 was 39.9 million. Earnings per share, basic and diluted, for the three months ended March 31, 2019 amounted to $0.05 compared to loss per share of $0.14 for the same period of last year.
- Adjusted net income was $2.1 million or $0.05 earnings per share for the three months ended March 31, 2019 compared to adjusted net loss of $2.0 million or $0.05 loss per share for the same period of last year.
- EBITDA for the three months ended March 31, 2019 amounted to $17.1 million. Reconciliations of Adjusted Net (Loss)/Income, EBITDA and Adjusted EBITDA to Net (Loss)/Income are set forth below.
- An average of 45.4 vessels were owned by the Company during the three months ended March 31, 2019, compared to 51.7 vessels for the same period of 2018.
Fleet Update Since Previous Announcement
The Company announced the conclusion of the following chartering arrangements:
- A two year time charter extension for its 2007 built LPG carrier the Gas Flawless, to an International LPG trader until March 2021.
- A ten year bareboat charter for its 2014 built LPG carrier the Eco Corsair, to a European shipping company until December 2029.
- A six months bareboat charter extension for its 2012 built LPG carrier the Gas Esco, to a State owned shipping company, up to December 2019.
- A six months bareboat charter extension for its 2012 built LPG carrier the Gas Husky, to a State owned shipping company, up to December 2019.
- A three months charter extension for its 2018 built 22,000 cbm semi-refrigerated carrier the Eco Freeze, to an International LPG trader until July 2019.
- A six months charter extension for its 2006 built LPG carrier the Gas Inspiration, to an international trader until October 2019.
- A six months charter extension charter for its 2016 built LPG carrier, the Eco Dominator, to an oil major until November 2019.
With these charters, the Company has contracted revenues of approximately $124 million. Total anticipated voyage days of our fleet is 71% covered for the remainder of 2019 and 29% for 2020.
Share Repurchase Program
The Company’s Board of Directors has approved a program for common share buybacks up to $10,000,000. Shares of common stock may be purchased in the open market or privately negotiated transactions, which may include derivative transactions, at times and prices that are considered to be appropriate by the Company and the program may be discontinued at any time.
Board Chairman Michael Jolliffe Commented
The first quarter of 2019 marked a good start for StealthGas in capturing the benefits of an improving market. Our much-better results were mainly driven by our remarkable operational utilization of 98.8%, our improved performance in the spot market, and of course were leveraged by the higher prevailing period rates that are slowly starting to make a noticeable impact on our revenue levels and profitability. Our balance sheet stands strong with $74.8 million of unrestricted cash and a leverage ratio as low as 40%. Our solid capital structure in combination with our leading market position places us in an advantageous position. The small LPG segment has solid market fundamentals in terms of a low orderbook and ageing fleet - factors that make it very probable that our market will improve further during the quarters ahead, so we will likely be looking at some exciting times to come.
With our stock trading at a large discount to our net asset value, our Board has taken the decision to initiate a share buyback program of up to $10 million. This is a means to support our stock as well as our shareholders for their commitment to StealthGas. We remain optimistic regarding the quarters ahead and hope that our good performance this quarter will be a turning point as to our profitability.
Conference Call details:
On May 23, 2019 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 866 869 2321 (US Toll Free Dial In) or 08003767425 (UK Toll Free Dial In).Access Code: 1469873 In case of any problems with the above numbers, please dial +1 917 7200 178(US Toll Dial In), +44 (0) 8444933857 (Standard International Dial In). Access Code: 1469873
A telephonic replay of the conference call will be available until May 30, 2019 by dialing +1 (866) 331-1332 (US Local Dial In), +44 (0) 8445718951 (UK Local Dial In). Access Code: 1469873
Slides and audio webcast:
There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About STEALTHGAS INC.
StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. currently has a fleet of 48 vessels. The fleet comprises of 44 LPG carriers, including two chartered in LPG vessels and four Joint Venture vessels, with a total capacity of 298,099 cubic meters (cbm), three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). StealthGas Inc.’s shares are listed on the NASDAQ Global Select Market and trade under the symbol “GASS”.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.
Fleet List and Fleet Deployment For information on our fleet and further information:Visit our website at www.stealthgas.com
Company Contact:Fenia Sakellaris STEALTHGAS INC. E-mail: [email protected]
| Fleet Data: | ||||
| The following key indicators highlight the Company’s operating performance during the quarters ended March 31, 2018 and March 31, 2019. | ||||
| FLEET DATA | Q1 2018 | Q1 2019 | ||
| Average number of vessels (1) | 51.7 | 45.4 | ||
| Period end number of owned vessels in fleet | 52 | 42 | ||
| Total calendar days for fleet (2) | 4,839 | 4,327 | ||
| Total voyage days for fleet (3) | 4,787 | 4,322 | ||
| Fleet utilization (4) | 98.90 | % | 99.90 | % |
| Total charter days for fleet (5) | 3,781 | 3,759 | ||
| Total spot market days for fleet (6) | 1,006 | 563 | ||
| Fleet operational utilization (7) | 93.30 | % | 98.80 | % |
1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.
Reconciliation of Adjusted Net (Loss)/Income, EBITDA, adjusted EBITDA and adjusted EPS:
Adjusted net (loss)/income represents net (loss)/income before loss on derivatives excluding net swap interest paid, share based compensation, gain on sale of vessels, gain on deconsolidation of subsidiaries and impairment. EBITDA represents net (loss)/income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents EBITDA before share based compensation, loss on derivatives, excluding net swap interest paid, gain on sale of vessels, gain on deconsolidation of subsidiaries and impairment loss. EBITDA, adjusted EBITDA, adjusted net (loss)/income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net (loss)/income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA and Adjusted net (loss)/income, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.
EBITDA, adjusted EBITDA, adjusted net (loss)/income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide additional information on fleet operational results to investors. We also believe that EBITDA represents useful information for investors regarding a company's ability to service and/or incur indebtedness.
| (Expressed in United States Dollars, except number of shares) | Three Months Period Ended March 31st, | |||
| 2018 | 2019 | |||
| Net (loss)/Income - Adjusted Net (Loss)/Income | ||||
| Net (loss)/income | (5,773,237 | ) | 1,968,866 | |
| Plus loss on derivatives | 46,755 | 22,697 | ||
| Less swap interest (paid)/received | (65,268 | ) | 50,852 | |
| Less gain on sale of vessel, net | -- | (7,473 | ) | |
| Less gain on deconsolidation of subsidiaries | -- | (145,000 | ) | |
| Plus impairment loss | 3,818,268 | -- | ||
| Plus share based compensation | -- | 234,247 | ||
| Adjusted Net (Loss)/Income | (1,973,482 | ) | 2,124,189 | |
| Net (loss)/income – EBITDA | ||||
| Net (loss)/income | (5,773,237 | ) | 1,968,866 | |
| Plus interest and finance costs | 5,139,567 | 5,982,871 | ||
| Less interest income | (99,396 | ) | (304,433 | ) |
| Plus depreciation | 10,530,359 | 9,474,186 | ||
| EBITDA | 9,797,293 | 17,121,490 | ||
| Net (loss)/income - Adjusted EBITDA | ||||
| Net (loss)/income | (5,773,237 | ) | 1,968,866 | |
| Plus loss on derivatives | 46,755 | 22,697 | ||
| Less gain on sale of vessel, net | -- | (7,473 | ) | |
| Less gain on deconsolidation of subsidiaries | -- | (145,000 | ) | |
| Plus impairment loss | 3,818,268 | -- | ||
| Plus share based compensation | -- | 234,247 | ||
| Plus interest and finance costs | 5,139,567 | 5,982,871 | ||
| Less interest income | (99,396 | ) | (304,433 | ) |
| Plus depreciation | 10,530,359 | 9,474,186 | ||
| Adjusted EBITDA | 13,662,316 | 17,225,961 | ||
| EPS - Adjusted EPS | ||||
| Net (loss)/income | (5,773,237 | ) | 1,968,866 | |
| Adjusted net (loss)/income | (1,973,482 | ) | 2,124,189 | |
| Weighted average number of shares | 39,860,563 | 39,860,563 | ||
| EPS - Basic and Diluted | (0.14 | ) | 0.05 | |
| Adjusted EPS-Basic and Diluted | (0.05 | ) | 0.05 | |
StealthGas Inc.Unaudited Consolidated Statements of Operations(Expressed in United States Dollars, except for number of shares)
| For The Three Months Ended March 31, | |||||||
| 2018 | 2019 | ||||||
| Revenues | |||||||
| Revenues | 39,695,482 | 38,442,818 | |||||
| Expenses | |||||||
| Voyage expenses | 5,151,251 | 3,328,519 | |||||
| Voyage expenses - related party | 483,899 | 476,637 | |||||
| Charter hire expenses | 969,147 | 2,097,549 | |||||
| Vessels' operating expenses | 15,358,413 | 12,667,370 | |||||
| Vessels' operating expenses - related party | 27,000 | 249,000 | |||||
| Drydocking costs | 1,503,080 | 185,624 | |||||
| Management fees - related party | 1,743,600 | 1,515,485 | |||||
| General and administrative expenses | 572,527 | 1,122,087 | |||||
| Depreciation | 10,530,359 | 9,474,186 | |||||
| Impairment loss | 3,818,268 | -- | |||||
| Net gain on sale of vessels | -- | (7,473 | ) | ||||
| Other operating costs | 146,667 | -- | |||||
| Total expenses | 40,304,211 | 31,108,984 | |||||
| (Loss)/Income from operations | (608,729 | ) | 7,333,834 | ||||
| Other (expenses)/income | |||||||
| Interest and finance costs | (5,139,567 | ) | (5,982,871 | ) | |||
| Gain on deconsolidation of subsidiaries | -- | 145,000 | |||||
| Loss on derivatives | (46,755 | ) | (22,697 | ) | |||
| Interest income | 99,396 | 304,433 | |||||
| Foreign exchange loss | (77,582 | ) | (16,788 | ) | |||
| Other expenses, net | (5,164,508 | ) | (5,572,923 | ) | |||
| Income before equity in income of investees | (5,773,237 | ) | 1,760,911 | ||||
| Equity gain in unconsolidated joint ventures | -- | 207,955 | |||||
| Net (Loss)/Income | (5,773,237 | ) | 1,968,866 | ||||
| (Loss)/Earnings per share | |||||||
| - Basic & Diluted | (0.14 | ) | 0.05 | ||||
| Weighted average number of shares | |||||||
| - Basic & Diluted | 39,860,563 | 39,860,563 | |||||
StealthGas Inc.Unaudited Consolidated Balance Sheets(Expressed in United States Dollars)
| December 31, | March 31, | ||||||
| 2018 | 2019 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 64,498,442 | 74,797,178 | |||||
| Receivable from related parties | -- | 926,901 | |||||
| Trade and other receivables | 2,888,496 | 3,316,105 | |||||
| Other current assets | 134,301 | 124,735 | |||||
| Inventories | 2,346,723 | 2,625,994 | |||||
| Advances and prepayments | 1,089,539 | 995,328 | |||||
| Restricted cash | 3,002,490 | 980,416 | |||||
| Assets held for sale | 64,906,448 | -- | |||||
| Total current assets | 138,866,439 | 83,766,657 | |||||
| Non current assets | |||||||
| Operating lease right-of-use assets | -- | 1,660,862 | |||||
| Vessels, net | 884,748,691 | 875,277,520 | |||||
| Other receivables | 108,930 | 102,688 | |||||
| Restricted cash | 11,930,059 | 11,863,437 | |||||
| Investments in unconsolidated joint ventures | -- | 21,011,980 | |||||
| Fair value of derivatives | 1,068,369 | 636,175 | |||||
| Total non current assets | 897,856,049 | 910,552,662 | |||||
| Total assets | 1,036,722,488 | 994,319,319 | |||||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Payable to related party | 7,930,642 | 4,137,150 | |||||
| Trade accounts payable | 10,349,358 | 10,982,689 | |||||
| Accrued liabilities | 6,879,488 | 6,561,668 | |||||
| Operating lease liabilities | -- | 1,595,197 | |||||
| Customer deposits | 1,336,000 | 968,000 | |||||
| Deferred income | 5,191,654 | 3,925,957 | |||||
| Current portion of long-term debt | 41,726,837 | 51,101,691 | |||||
| Current portion of long-term debt associated with vessels held for sale | 30,076,356 | -- | |||||
| Total current liabilities | 103,490,335 | 79,272,352 | |||||
| Non current liabilities | |||||||
| Fair value of derivatives | 465,389 | 1,247,798 | |||||
| Customer deposits | -- | 368,000 | |||||
| Operating lease liabilities | -- | 65,665 | |||||
| Long-term debt | 371,514,253 | 351,050,934 | |||||
| Total non current liabilities | 371,979,642 | 352,732,397 | |||||
| Total liabilities | 475,469,977 | 432,004,749 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Capital stock | 445,496 | 445,496 | |||||
| Treasury stock | (22,523,528 | ) | (22,523,528 | ) | |||
| Additional paid-in capital | 501,807,478 | 502,041,725 | |||||
| Retained earnings | 80,849,086 | 82,817,952 | |||||
| Accumulated other comprehensive income/(loss) | 673,979 | (467,075 | ) | ||||
| Total stockholders' equity | 561,252,511 | 562,314,570 | |||||
| Total liabilities and stockholders' equity | 1,036,722,488 | 994,319,319 | |||||
StealthGas Inc.Unaudited Consolidated Statements of Cash Flows(Expressed in United States Dollars)
| For The Three Months Ended March 31, | |||||||
| 2018 | 2019 | ||||||
| Cash flows from operating activities | |||||||
| Net (loss)/income for the period | (5,773,237 | ) | 1,968,866 | ||||
| Adjustments to reconcile net (loss)/income to net cash | |||||||
| provided by operating activities: | |||||||
| Depreciation | 10,530,359 | 9,474,186 | |||||
| Amortization of deferred finance charges | 224,171 | 278,044 | |||||
| Amortization of deferred gain on sale and leaseback of vessels | (48,092 | ) | -- | ||||
| Amortization of operating lease right-of-use assets | -- | 385,213 | |||||
| Share based compensation | -- | 234,247 | |||||
| Change in fair value of derivatives | (18,513 | ) | 73,549 | ||||
| Equity gain in unconsolidated joint ventures | -- | (207,955 | ) | ||||
| Impairment loss | 3,818,268 | -- | |||||
| Gain on sale of vessels, net | -- | (7,473 | ) | ||||
| Gain on deconsolidation of subsidiaries | -- | (145,000 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| (Increase)/decrease in | |||||||
| Trade and other receivables | (1,442,928 | ) | (421,367 | ) | |||
| Other current assets | (57,745 | ) | 9,566 | ||||
| Claims receivable | 15,951 | -- | |||||
| Inventories | (1,029,036 | ) | 439,177 | ||||
| Changes in operating lease liabilities | -- | (385,213 | ) | ||||
| Advances and prepayments | (512,513 | ) | 94,211 | ||||
| Increase/(decrease) in | |||||||
| Balances with related parties | (3,410,105 | ) | (4,263,783 | ) | |||
| Trade accounts payable | 2,567,412 | 633,331 | |||||
| Accrued liabilities | 321,392 | 342,180 | |||||
| Deferred income | 923,832 | (1,265,697 | ) | ||||
| Net cash provided by operating activities | 6,109,216 | 7,236,082 | |||||
| Cash flows from investing activities | |||||||
| Proceeds from sale of interests in subsidiaries | -- | 20,720,975 | |||||
| Vessels’ acquisitions and advances for vessels under construction | (71,879,444 | ) | -- | ||||
| Proceeds from sale of vessels, net | -- | 8,302,458 | |||||
| Cash paid to unconsolidated joint ventures | -- | (456,610 | ) | ||||
| Net cash (used in)/provided by investing activities | (71,879,444 | ) | 28,566,823 | ||||
| Cash flows from financing activities | |||||||
| Deferred finance charges | (444,330 | ) | (152,751 | ) | |||
| Customer deposits paid | (1,220,700 | ) | -- | ||||
| Loan repayments | (10,344,081 | ) | (38,690,114 | ) | |||
| Proceeds from long-term debt | 80,450,000 | 11,250,000 | |||||
| Net cash provided by/(used in) financing activities | 68,440,889 | (27,592,865 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 2,670,661 | 8,210,040 | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 62,903,192 | 79,430,991 | |||||
| Cash, cash equivalents and restricted cash at end of period | 65,573,853 | 87,641,031 | |||||
| Cash breakdown | |||||||
| Cash and cash equivalents | 52,687,631 | 74,797,178 | |||||
| Restricted cash, current | 3,403,331 | 980,416 | |||||
| Restricted cash, non-current | 9,482,891 | 11,863,437 | |||||
| Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 65,573,853 | 87,641,031 | |||||
