Navigator Holdings Ltd.: Preliminary Results for the Three and Six Months Ended June 30, 2018
LONDON, Aug. 6, 2018 /PRNewswire/ --
Highlights
-- Navigator Holdings Ltd. (the "Company") reported operating revenue of
$73.2 million for the three months ended June 30, 2018.
-- Net loss was $3.2 million (resulting in a loss per share of $0.06) for
the three months ended June 30, 2018.
-- EBITDA(1) was $27.2 million for the three months ended June 30, 2018.
-- Net cash provided by operating activities was $21.0 million for the
three months ended June 30, 2018.
-- During the quarter the Company announced that construction is now under
way on the 50/50 joint venture to construct an ethylene marine export
terminal, which will be located at Morgan's Point, Texas on the Houston
Ship Channel. The facility will have the capacity to export
approximately one million tons of ethylene per year. Refrigerated
storage for 30,000 tons of ethylene will be constructed on-site and will
provide the capability to load ethylene at rates of 1,000 tons per hour.
Commercial operations are expected to begin in the fourth quarter of
2019, one quarter earlier than previously projected.
-- Maintained strong fleet utilization of 90.3% for the three months ended
June 30, 2018, up from the 86.2% achieved during the second quarter of
2017.
Fleet utilization was 90.3% during the second quarter of 2018, up from the 86.2% achieved during the second quarter of 2017, but slightly down on the 91.7% achieved during the first quarter of 2018. Petrochemical activity, particularly long-haul carriage of petrochemicals (butadiene, crude C4 and butene-1) from Europe to the U.S. Gulf of Mexico and Brazil to the Far East have been the primary factor behind this increase in utilization. Two handysize and two midsize vessels have been fully employed transporting ethane for the majority of the second quarter of 2018, trading from the U.S. to Central and South America as well as North West Europe. All five midsized gas carriers ("MGCs") in the fleet are now contracted to operate under time charters for the remainder of 2018.
However, the increase in utilization has been tempered by a continued low charter rate environment, compounded by an approximate 30% increase in bunker prices across the second quarter of 2018 as crude prices rise, translating to further reductions in charter rates achieved. Ethylene handysize vessels have returned to charter rates of approximately $25,000 per day during the second quarter, although rates for standard LPG transportation remained at approximately $15,000 per day. Energy Transfer Partners' Marcus Hook export facility remained offline for nearly all of the second quarter, which caused much disruption to the Atlantic's time charter business operators that rely on this facility.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA for the three months ended June 30, 2018:
(in thousands)
Net loss $(3,159)
Interest expense 11,353
Interest income (207)
Income taxes 146
Depreciation and amortization 19,029
EBITDA $27,162
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(1) EBITDA is a non-GAAP financial measure. 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 above for a reconciliation of EBITDA to net income (loss), our most directly comparable financial measure calculated accordance with U.S. GAAP.
A Form 6-K with more detailed information on our second quarter 2018 financial results is being filed with the U.S. Securities and Exchange Commission simultaneously with this release for the quarter ended June 30, 2018.
Conference Call Details:
Tomorrow, Tuesday, August 7, 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 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (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 Tuesday, August 14th, 2018, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays 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.
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 joint venture ethylene marine export 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.
All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. 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.
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, June 30,
2017 2018
---- ----
(in thousands except share
data)
Assets
Current assets
Cash and cash equivalents $62,109 $55,096
Accounts receivable, net 14,889 11,585
Accrued income 15,791 5,031
Prepaid expenses and other
current assets 10,964 17,020
Bunkers and lubricant oils 8,008 7,122
Insurance recoverable 376 825
Total current assets 112,137 96,679
Non-current assets
Vessels in operation, net 1,740,139 1,704,895
Investment in equity accounted
joint venture - 10,475
Property, plant and equipment,
net 1,611 1,466
Total non-current assets 1,741,750 1,716,836
Total assets $1,853,887 $1,813,515
Liabilities and stockholders' equity
Current liabilities
Current portion of secured term
loan facilities, net of deferred
financing costs $81,559 $73,274
Accounts payable 8,071 10,163
Accrued expenses and other
liabilities 12,478 14,105
Accrued interest 3,500 3,466
Deferred income 4,824 4,963
Total current liabilities 110,432 105,971
Non-current liabilities
Secured term loan facilities, net
of current portion and deferred
financing costs 681,658 651,034
Senior unsecured bond, net of
deferred financing costs 98,584 98,812
Total non-current liabilities 780,242 749,846
Total liabilities 890,674 855,817
Commitments and contingencies (see note 9)
Stockholders' equity
Common stock-$.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 589,436 589,800
Accumulated other comprehensive
loss (277) (343)
Retained earnings 373,499 367,684
Total stockholders' equity 963,213 957,698
Total liabilities and
stockholders' equity $1,853,887 $1,813,515
Navigator Holdings Ltd.
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended Six months ended
June 30, June 30,
(in thousands except share (in thousands except share
data) data)
2017 2018 2017 2018
---- ---- ---- ----
Revenues
Operating revenue $74,381 $73,163 $151,700 $150,970
Expenses
Brokerage commissions 1,389 1,219 2,914 2,360
Voyage expenses 13,516 13,930 28,515 28,908
Vessel operating expenses 25,001 26,040 48,906 52,751
Depreciation and
amortization 18,304 19,029 35,938 38,410
General and
administrative costs 3,578 3,818 6,330 8,049
Other corporate expenses 329 994 952 1,209
Total operating expenses 62,117 65,030 123,555 131,687
Operating income 12,264 8,133 28,145 19,283
Other income/(expense)
Interest expense (9,372) (11,353) (18,298) (21,877)
Write off of deferred
financing costs (627) - (1,281) -
Write off of call premium
and redemption charges
on 9% - - (3,517) -
unsecured bond
Interest income 119 207 232 359
Income/(loss) before
income taxes 2,384 (3,013) 5,281 (2,235)
Income taxes (130) (146) (289) (228)
Net income/(loss) $2,254 $(3,159) $4,992 $(2,463)
Earnings per share:
Basic: $0.04 $(0.06) $0.09 $(0.04)
Diluted: $0.04 $(0.06) $0.09 $(0.04)
Weighted average number of shares outstanding:
Basic: 55,531,831 55,656,304 55,488,984 55,601,772
Diluted: 55,905,571 55,656,304 55,862,724 55,601,772
Navigator Holdings Ltd.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months ended Six Months ended
June 30, June 30,
2017 2018
---- ----
(in thousands) (in thousands)
Cash flows from operating activities
Net income/(loss) $4,992 $(2,463)
Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation and amortization 35,938 38,410
Payment of drydocking costs (33) (2,880)
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 -
Prior year expenses recovered in
insurance claim (504) (754)
Amortization of share-based
compensation 773 366
Amortization of deferred
financing costs 2,508 1,131
Unrealized foreign exchange 155 (30)
Changes in operating assets and liabilities
Accounts receivable (6,091) 3,392
Bunkers and lubricant oils (461) 886
Prepaid expenses and other
current assets (2,329) 4,706
Accounts payable, accrued
interest and other liabilities 2,604 3,734
Net cash provided by operating
activities 40,052 43,146
Cash flows from investing activities
Payment to acquire vessels (1,352) (79)
Investment in equity accounted
joint venture - (10,475)
Payment for vessels under
construction (97,147) -
Purchase of other property,
plant and equipment (1,506) (97)
Receipt of shipyard penalty
payments 280 -
Insurance recoveries 991 305
Placement of short term
investment (25,000) -
Net cash used in investing
activities (123,734) (10,346)
Cash flows from financing activities
Proceeds from secured term loan
facilities 142,508 3,800
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) -
Repayment of secured term loan
facilities (57,981) (43,613)
Net cash provided by/(used in)
financing activities 55,208 (39,813)
Net decrease in cash and cash
equivalents (28,474) (7,013)
Cash and cash equivalents at
beginning of period 57,272 62,109
Cash and cash equivalents at end
of period $28,798 $55,096
Supplemental Information
Total interest paid during the
period, net of amounts
capitalized $15,799 $20,799
Total tax paid during the period $317 $52
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
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SOURCE Navigator Gas
