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,
                                                                                   2016                     2017


                                                                                                            ---

                                               (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
    55,531,831 shares issued and outstanding,
     (2016: 55,436,087

    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
                                                                  September 30,                          September 30,
                                                        (in thousands except share data)       (in thousands except share data)
                                                      -------------------------------     -------------------------------

                                                                  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
                                                                  September 30,                      September 30,
                                                                                              2016                         2017


                                                                                                                           ---

                                                                 (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

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SOURCE Navigator Gas