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