Navigator Holdings Ltd. Preliminary Results For the Three Months Ended March 31, 2018
Navigator Holdings Ltd. Preliminary Results For the Three Months Ended March 31, 2018
LONDON, May 9, 2018 /PRNewswire/ -- Highlights
-- Navigator Holdings Ltd. (the "Company") (NYSE: NVGS) reported net income of $0.7 million and earnings per share of $0.01 for the three months ended March 31, 2018. -- EBITDA((1)) was $30.5 million for the three months ended March 31, 2018. -- Maintained strong fleet utilization of 91.7% for the three months ended March 31, 2018. -- During the first quarter of 2018, the Company took an additional vessel into in-house technical management taking the total number of in-house managed vessels to ten. -- During the three months ended March 31, 2018, the Company made an initial capital contribution of $10.0 million in connection with the execution of definitive agreements relating to a 50/50 joint venture with Enterprise Products Partners L.P. to build a new ethylene marine export terminal along the U.S. Gulf Coast. The terminal will have the capacity to export approximately one million tons of ethylene per year and is expected to commence operation in the fourth quarter of 2019.
(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 March 31, 2018:
$'000's Net income $696 Interest expense 10,524 Interest income (152) Income taxes 82 Depreciation and amortization 19,381 ------ EBITDA $30,531 -------
A Form 6-K with more detailed information on our first quarter 2018 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended March 31, 2018.
Conference Call Details:
Tomorrow, Thursday, May 10, 2018, 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, May 17, 2018 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
Attention: Investor Relations Department
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
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. We play a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable.
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 meet our expectations regarding the construction and financing of our proposed Export Terminal Joint Venture and our expectations regarding the financial success of such terminal. -- 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, March 31, 2017 2018 ---- ---- (in thousands except share data) Assets Current assets Cash and cash equivalents............................................................................................................................... $62,109 $50,814 Accounts receivable, net................................................................................................................................... 14,889 13,173 Accrued income.................................................................................................................................................. 15,791 2,935 Prepaid expenses and other current assets.................................................................................................... 10,964 16,486 Bunkers and lubricant oils................................................................................................................................ 8,008 7,520 Insurance recoverable....................................................................................................................................... 376 99 --- --- Total current assets............................................................................................................................................ 112,137 91,027 Non-current assets Vessels in operation, net.................................................................................................................................... 1,740,139 1,722,582 Investment in equity accounted joint venture - 10,494 Property, plant and equipment, net................................................................................................................ 1,611 1,614 ----- ----- Total non-current assets.................................................................................................................................... 1,741,750 1,734,690 --------- --------- Total assets......................................................................................................................................................... $1,853,887 $1,825,717 ========== ========== Liabilities and stockholders' equity Current liabilities Current portion of secured term loan facilities, net of deferred financing costs............................................... $81,559 $76,287 Accounts payable.............................................................................................................................................. 8,071 7,594 Accrued expenses and other liabilities............................................................................................................ 12,478 12,057 Accrued interest.................................................................................................................................................. 3,500 1,840 Deferred income................................................................................................................................................. 4,824 3,903 ----- ----- Total current liabilities................................................................................................................................... 110,432 101,681 ------- ------- Non-current liabilities Secured term loan facilities, net of current portion and deferred financing costs................................................ 681,658 664,449 Senior unsecured bond, net of deferred financing costs..................................................................................... 98,584 98,698 ------ ------ Total non-current liabilities...................................................................................................................................... 780,242 763,147 ------- ------- Total liabilities.................................................................................................................................................. 890,674 864,828 Commitments and contingencies (see note 9) Stockholders' equity Common stock-$.01 par value; 400,000,000 shares authorized; 55,656,304 shares issued and 555 557 outstanding, (2017: 55,529,762)............................................................................................................... Additional paid-in capital................................................................................................................................. 589,436 589,743 Accumulated other comprehensive loss........................................................................................................ (277 ) (254 ) Retained earnings............................................................................................................................................... 373,499 370,843 ------- ------- Total stockholders' equity................................................................................................................................ 963,213 960,889 ------- ------- Total liabilities and stockholders' equity................................................................................................... $1,853,887 $1,825,717 ========== ==========
Navigator Holdings Ltd. Consolidated Statements of Income (Unaudited) Three months ended March 31, (in thousands except share data) 2017 2018 Revenues Operating revenue............................................................................................................................................... $77,320 $77,807 Expenses Brokerage commissions..................................................................................................................................... 1,525 1,141 Voyage expenses................................................................................................................................................. 15,000 14,978 Vessel operating expenses................................................................................................................................. 23,905 26,710 Depreciation and amortization......................................................................................................................... 17,634 19,381 General and administrative costs..................................................................................................................... 2,752 4,232 Other corporate expenses.................................................................................................................................. 623 215 --- --- Total operating expenses................................................................................................................................. 61,439 66,657 ------ ------ Operating income.............................................................................................................................................. 15,881 11,150 Other income/(expense) Interest expense................................................................................................................................................... (8,927 ) (10,524 ) Write off of deferred financing costs............................................................................................................... (653 ) - Write off of call premium and redemption charges on 9% unsecured bond........................................... (3,517 ) - Interest income.................................................................................................................................................... 113 152 --- --- Income before income taxes........................................................................................................................... 2,897 778 Income taxes....................................................................................................................................................... (159 ) (82 ) ----- ---- Net income........................................................................................................................................................... $2,738 $696 ====== ==== Earnings per share: Basic:..................................................................................................................................................................... $0.05 $0.01 Diluted:.................................................................................................................................................................. $0.05 $0.01 ===== ===== Weighted average number of shares outstanding: Basic:..................................................................................................................................................................... 55,445,661 55,546,634 Diluted:.................................................................................................................................................................. 55,819,401 55,915,174 ========== ==========
Navigator Holdings Ltd. Consolidated Statements of Cash Flows (Unaudited) Three Months ended Three Months ended March 31, March 31, 2017 2018 ---- ---- (in thousands) (in thousands) Cash flows from operating activities Net income.................................................................................................................................................. $2,738 $696 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization.......................................................................................................................... 17,634 19,381 Credit / (Payment) of drydocking costs............................................................................................................ 9 (1,524) Adjustment to equity for the adoption of the new revenue standard - (3,352) Call option premium on redemption of 9.00% unsecured bond........................................................................ 2,500 - Amortization of share-based compensation.................................................................................................... 409 310 Amortization of deferred financing costs........................................................................................................ 1,345 568 Unrealized foreign exchange........................................................................................................................... 17 (41) Changes in operating assets and liabilities Accounts receivable....................................................................................................................................... (5,211 ) 1,716 Bunkers and lubricant oils............................................................................................................................... (346) 488 Prepaid expenses and other current assets................................................................................................... (3,492 ) 7,334 Accounts payable, accrued interest and other liabilities................................................................................. 323 (3,479) --- ------ Net cash provided by operating activities.............................................................................................. 15,926 22,097 ------ ------ Cash flows from investing activities Payment to acquire vessels............................................................................................................................ (636) (193) Investment in equity accounted joint venture.................................................................................................. - (10,494) Payment for vessels under construction........................................................................................................ (84,597 ) - Purchase of other property, plant and equipment........................................................................................... (1,160 ) (45 ) Receipt of shipyard penalty payments............................................................................................................ 280 - Insurance recoveries...................................................................................................................................... 486 277 --- --- Net cash used in investing activities....................................................................................................... (85,627) (10,455) ------- ------- Cash flows from financing activities Proceeds from secured term loan facilities..................................................................................................... 106,808 - 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........................................................................................ (1,798) - Repayment of secured term loan facilities...................................................................................................... (19,433 ) (22,937) -------- ------- Net cash provided by/(used in) financing activities............................................................................. 58,077 (22,937) ------ ------- Net decrease in cash and cash equivalents.......................................................................................... (11,624) (11,295 ) Cash and cash equivalents at beginning of period............................................................................. 57,272 62,109 ------ ------ Cash and cash equivalents at end of period....................................................................................... $45,648 $50,814 ======= ======= Supplemental Information Total interest paid during the period, net of amounts capitalized................................................................... $6,329 $11,616 ====== ======= Total tax paid during the period...................................................................................................................... $82 $4 === ===
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SOURCE Navigator Gas