LONDON, Mar. 1, 2017 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (NYSE:
NVGS) reports operating revenue of $75.5 million for the three months ended
December 31, 2016. Operating revenue amounted to $294.1 million for the full year ended
December 31, 2016.
- Net income was $7.6 million for the three months ended
December 31, 2016. Net income was $44.6 million for the year ended
December 31, 2016.
- Earnings per share was
$0.14 for the three months ended
December 31, 2016 and $0.81 for
the full year ended December 31, 2016.
- EBITDA(1) was
$33.8 million for the three
months ended December 31, 2016 and $140.2 million for the year ended
December 31, 2016.
- We took delivery of four
newbuilding vessels during 2016, increasing our fleet to 33 vessels
on the water as at December 31, 2016. In 2017 we have taken
delivery of an additional two newbuildings, with the three
remaining newbuildings expected to be delivered by July 2017.
- In October 2016, we entered into a new $220.0 million secured term loan and
revolving credit facility, to refinance two loan facilities that
were due to mature in April 2017, and
to provide the finance for our final unfinanced
newbuilding.
- In February 2017, two of our original ethylene
carriers were placed on long-term time charters that will commence
in either late 2017 or early 2018 with Braskem SA. These vessels
will transport ethane from Enterprise Product Partners, Morgan's
Point Terminal, in the Houston Ship Channel to the Braskem ethylene
complex in Brazil.
- In February 2017, we successfully issued
$100.0 million in new 7.75%
senior unsecured bonds maturing in 2021 in the Norwegian bond
market. The net proceeds and cash on hand were used to repay all of
our outstanding $125.0 million
aggregate principal amount of 9% senior unsecured bonds that were
due to mature in December 2017.
Fourth Quarter 2016 Financial Results Overview
Operating revenue for the three months ended December 31,
2016 was $75.5 million, a
decrease of $3.2 million, or
4.1%, compared to the $78.7 million of operating revenue for the
three months ended December 31, 2015. This decrease was due to
a softening of the LPG seaborne transportation market.
For the fourth quarter of 2016, the average time charter
equivalent rate ("TCE") (2) across the entire fleet,
including our fully-refrigerated vessels, was $692,213 per calendar month ($22,758 per day), compared to $921,069 per calendar month ($30,282 per day) for the comparable period in
2015.
Fleet utilization across the 33 vessels operating at the year
end was 89.5% for the fourth quarter of 2016, up from 88.1% in the
third quarter of 2016, but a reduction from 92.7% for the fourth
quarter of 2015. This decrease from last year was primarily due to
weaker demand for our vessels as a result of the softening of the
LPG seaborne transportation market during the second half of 2016,
leading to an increase in the number of idle days.
Operating revenue less voyage expenses amounted to $61.5 million for the three months ended
December 31, 2016 compared to $72.3 million in the same three month period
of 2015. This decrease was as a result of a reduction in TCE rates
by $21.1 million, a reduction in
utilization rates by $2.2 million, offset by a $12.5 increase due to additional vessels in our
fleet during the three months ended December 31, 2016 compared
to the three months ended December 31, 2015
Net income was $7.6 million
for the three months ended December 31, 2016, or $0.14 per share compared to $23.8 million or $0.43 per share for the same period in 2015.
EBITDA(1) for the fourth quarter of 2016 was
$33.8 million and $140.2 million for the full year ended
December 31, 2016.
(1) EBITDA is not a measure
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). EBITDA represents net income before net
interest expense, income taxes and depreciation and amortization.
EBITDA is a basis upon which we assess our financial performance.
We believe that it presents useful information to investors
regarding a company's ability to service and/or incur indebtedness,
and it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. EBITDA does not represent and should not be considered as
an alternative to consolidated net income or cash generated from
operations, as determined by 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 to the most directly
comparable GAAP financial measure.
The following table sets forth a reconciliation of EBITDA to net
income, the most directly comparable measure calculated in
accordance with GAAP, for the periods presented:
|
|
|
|
|
|
Three months
ended
December 31,
(in thousands)
|
Year ended
December 31,
(in thousands)
|
|
2015
|
2016
|
2015
|
2016
|
|
|
|
|
|
Net
income.................................................................................................................................................................................................................................
|
$
23,821
|
$
7,646
|
$
98,094
|
$
44,638
|
Net interest
expense................................................................................................................................................................................................................................
|
7,103
|
8,940
|
29,730
|
32,142
|
Income
taxes.....................................................................................................................................................................................................................................
|
190
|
575
|
800
|
1,177
|
Depreciation and
amortization.......................................................................................................................................................................................................................
|
14,515
|
16,625
|
53,453
|
62,280
|
|
|
|
|
|
EBITDA...................................................................................................................................................................................................................................
|
$
45,629
|
$
33,786
|
$
182,077
|
$
140,237
|
|
|
|
|
|
(2) TCE rate is a non-GAAP
financial measure. TCE rate is a measure of the average daily
revenue performance of a vessel. TCE rate is a shipping industry
performance measure used primarily to compare period-to-period
changes in a shipping company's performance despite changes in the
mix of charter types (i.e., time charters, voyage charters and
contracts of affreightment, or "COAs") under which the vessels may
be employed between the periods. Under a time charter, the
charterer pays substantially all of the vessel voyage related
expenses, whereas for voyage charters we pay all voyage expenses.
We include average daily TCE rate, as we believe it provides
additional meaningful information in conjunction with operating
revenues less voyage expenses, because it assists our management in
making decisions regarding the deployment and use of our vessels
and in evaluating their financial performance. Our method of
calculating TCE rate is to divide operating revenue (net of voyage
expenses) by operating days for the relevant time period. See the
table below for a reconciliation to the most directly comparable
GAAP financial measure.
The following table represents a reconciliation of TCE rate to
operating revenue, the most directly comparable financial measure
calculated in accordance with GAAP, for the periods presented:
|
|
|
|
Three months ended
December 31, 2015
|
Three months ended
December 31, 2016
|
Fleet
Data:
|
|
|
Operating
revenue..........................................................
|
$
78,670
|
$
75,455
|
Voyage
expenses...........................................................
|
6,325
|
13,914
|
|
|
|
Operating revenue
less Voyage expenses..................
|
72,345
|
61,541
|
Operating
days...............................................................
|
2,389
|
2,704
|
Average daily time
charter equivalent rate...............
|
$
30,282
|
$
22,758
|
Conference Call Details:
Tomorrow, Thursday, March 2, 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.
A telephonic replay of the conference call will be available
until Thursday, March 9, 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#
Audio Webcast:
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.
Navigator Gas
Attention: Investor Relations Department
|
|
New York:
|
399 Park Avenue, 38th
Floor, New York, NY 10022. Tel: +1 212 355 5893
|
London:
|
21 Palmer Street,
London, SW1H 0AD. Tel: +44 (0)20 7340
4850
|
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 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, including three newbuildings scheduled for delivery by
July 2017.
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;
• 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 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 receipt of
our three newbuildings and the timing of the receipt thereof;
• 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;
• our expectation that in 2017 we will
continue to provide in-house technical management for more of the
vessels in our fleet;
• potential liability from future
litigation;
• our expectations relating to the
payment of dividends; and
• other factors discussed in other
periodic filings with the U.S. 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,
2015
|
December 31,
2016
|
|
(in thousands except share data)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents......................................................................................................................................................................................................................
|
$
87,779
|
$
57,272
|
Accounts receivable,
net.....................................................................................................................................................................................................................................
|
9,050
|
7,059
|
Accrued
income.............................................................................................................................................................................................................................
|
5,647
|
13,134
|
Prepaid expenses and
other current
assets................................................................................................................................................................................................................................
|
8,754
|
8,541
|
Inventories............................................................................................................................................................................................................................
|
3,480
|
6,937
|
Insurance
recoverable......................................................................................................................................................................................................................
|
10,289
|
855
|
|
|
|
Total current
assets................................................................................................................................................................................................................................
|
124,999
|
93,798
|
|
|
|
Non-current
assets
|
|
|
Vessels in operation,
net.....................................................................................................................................................................................................................................
|
1,264,451
|
1,480,359
|
Vessels under
construction....................................................................................................................................................................................................................
|
170,776
|
150,492
|
Property, plant and
equipment,
net.....................................................................................................................................................................................................................................
|
279
|
194
|
|
|
|
Total non-current
assets................................................................................................................................................................................................................................
|
1,435,506
|
1,631,045
|
|
|
|
Total
assets................................................................................................................................................................................................................................
|
$
1,560,505
|
$
1,724,843
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities
|
|
|
Current portion of
long-term debt, net of deferred financing
costs..................................................................................................................................................................................................................................
|
$
59,024
|
$
78,464
|
Senior unsecured
bond.................................................................................................................................................................................................................................
|
—
|
25,000
|
Accounts
payable............................................................................................................................................................................................................................
|
11,471
|
6,388
|
Accrued expenses and
other
liabilities...........................................................................................................................................................................................................................
|
9,065
|
11,377
|
Accrued
interest..............................................................................................................................................................................................................................
|
3,117
|
2,932
|
Deferred
income.............................................................................................................................................................................................................................
|
6,606
|
3,522
|
|
|
|
Total current
liabilities.........................................................................................................................................................................................................................
|
89,283
|
127,683
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
Secured term loan
facilities, net of current portion and deferred financing
costs..................................................................................................................................................................................................................................
|
436,131
|
540,680
|
Senior unsecured
bond.................................................................................................................................................................................................................................
|
125,000
|
100,000
|
|
|
|
Total non-current
liabilities...........................................................................................................................................................................................................................
|
561,131
|
640,680
|
|
|
|
Total
liabilities.........................................................................................................................................................................................................................
|
650,414
|
768,363
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity
|
|
|
Common stock – $.01
par value; 400,000,000 shares authorized; 55,436,087 shares issued
and outstanding, (2015: 55,363,467)
|
554
|
554
|
Additional paid-in
capital..............................................................................................................................................................................................................................
|
586,451
|
588,024
|
Accumulated other
comprehensive
loss....................................................................................................................................................................................................................................
|
(465 )
|
(287 )
|
Retained
earnings............................................................................................................................................................................................................................
|
323,551
|
368,189
|
|
|
|
Total stockholders'
equity...............................................................................................................................................................................................................................
|
910,091
|
956,480
|
|
|
|
Total liabilities and
stockholders'
equity...............................................................................................................................................................................................................................
|
$
1,560,505
|
$
1,724,843
|
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd.
|
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
Three months
ended
December 31,
(in thousands except share and per
share data)
|
Year ended
December 31,
(in thousands except share and per
share data)
|
|
2015
|
2016
|
2015
|
2016
|
Revenues
|
|
|
|
|
Operating
revenue.....................................................................................................................................................................................................................................
|
$
78,670
|
$
75,455
|
$
315,223
|
$
294,112
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
Brokerage
commissions............................................................................................................................................................................................................................
|
1,804
|
1,430
|
6,995
|
5,812
|
Voyage
expenses...................................................................................................................................................................................................................................
|
6,325
|
13,914
|
33,687
|
42,201
|
Vessel operating
expenses...................................................................................................................................................................................................................................
|
21,150
|
22,611
|
78,842
|
90,854
|
Depreciation and
amortization............................................................................................................................................................................................................................
|
14,515
|
16,625
|
53,453
|
62,280
|
General and
administrative
costs...........................................................................................................................................................................................................................................
|
2,915
|
3,348
|
11,011
|
12,528
|
Other corporate
expenses...................................................................................................................................................................................................................................
|
239
|
366
|
2,553
|
1,976
|
Profit from sale of
vessel.........................................................................................................................................................................................................................................
|
—
|
—
|
(550 )
|
—
|
Vessel write down
following
collision.....................................................................................................................................................................................................................................
|
—
|
—
|
10,500
|
—
|
Insurance recoverable
from vessel
repairs........................................................................................................................................................................................................................................
|
608
|
—
|
(9,892 )
|
504
|
|
|
|
|
|
Total operating
expenses...................................................................................................................................................................................................................................
|
47,556
|
58,294
|
186,599
|
216,155
|
|
|
|
|
|
|
|
|
|
|
Operating
income......................................................................................................................................................................................................................................
|
31,114
|
17,161
|
128,624
|
77,957
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
Interest
expense.....................................................................................................................................................................................................................................
|
(7,166 )
|
(8,879 )
|
(28,085 )
|
(32,321 )
|
Write off deferred
finance
costs...........................................................................................................................................................................................................................................
|
—
|
(102 )
|
(1,797 )
|
(102 )
|
Interest
income......................................................................................................................................................................................................................................
|
63
|
41
|
152
|
281
|
|
|
|
|
|
Income before
income
taxes..........................................................................................................................................................................................................................................
|
24,011
|
8,221
|
98,894
|
45,815
|
Income
taxes..........................................................................................................................................................................................................................................
|
(190 )
|
(575 )
|
(800 )
|
(1,177 )
|
|
|
|
|
|
Net
income......................................................................................................................................................................................................................................
|
$
23,821
|
$
7,646
|
$
98,094
|
$
44,638
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic:..............................................................................................................................................................................................................................................
|
$
0.43
|
$
0.14
|
$
1.77
|
$
0.81
|
Diluted:...........................................................................................................................................................................................................................................
|
$
0.43
|
$
0.14
|
$
1.76
|
$
0.80
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
Basic:..............................................................................................................................................................................................................................................
|
55,363,467
|
55,436,087
|
55,360,004
|
55,418,626
|
Diluted:...........................................................................................................................................................................................................................................
|
55,741,907
|
55,810,365
|
55,706,104
|
55,794,481
|
|
|
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd.
|
|
Consolidated
Statements of Comprehensive Income
|
(Unaudited)
|
|
|
|
|
Three months ended
December 31,
(in thousands)
|
Year ended
December 31,
(in thousands)
|
|
2015
|
2016
|
2015
|
2016
|
|
|
|
|
|
Net
income.............................................................................................................................................................................................................................
|
$
23,821
|
$
7,646
|
$
98,094
|
$
44,638
|
Other
Comprehensive Income/(Loss):
|
|
|
|
|
Foreign currency
translation
(loss)/gain........................................................................................................................................................................................................................
|
(135 )
|
114
|
(211 )
|
178
|
|
|
|
|
|
Total
Comprehensive
Income............................................................................................................................................................................................................................
|
23,686
|
7,760
|
97,883
|
44,816
|
|
|
|
|
|
|
|
Consolidated
Statements of Stockholders' Equity
|
(Unaudited)
|
|
|
(in thousands except
share data)
|
|
Number of
shares
|
Common
Stock at 0.01
par value
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Income / (Loss)
|
Retained
Earnings
|
Total
|
|
|
|
|
|
|
|
January 1,
2015..........................................
|
55,346,613
|
$
553
|
$
584,808
|
$
(254 )
|
$
225,457
|
$
810,564
|
|
|
|
|
|
|
|
Restricted shares
issued March 17, 2015.
|
16,854
|
1
|
—
|
—
|
—
|
1
|
Net
income....................................................
|
—
|
—
|
—
|
—
|
98,094
|
98,094
|
Foreign currency
translation.......................
|
—
|
—
|
—
|
(211 )
|
—
|
(211 )
|
Share-based
compensation plan...............
|
—
|
—
|
1,643
|
—
|
—
|
1,643
|
|
|
|
|
|
|
|
December 31,
2015.....................................
|
55,363,467
|
$
554
|
$
586,451
|
$
(465 )
|
$
323,551
|
$
910,091
|
|
|
|
|
|
|
|
Restricted shares
issued March 29, 2016
|
72,620
|
—
|
—
|
—
|
—
|
—
|
Net
income....................................................
|
—
|
—
|
—
|
—
|
44,638
|
44,638
|
Foreign currency
translation.......................
|
—
|
—
|
—
|
178
|
—
|
178
|
Share-based
compensation plan...............
|
—
|
—
|
1,573
|
—
|
—
|
1,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016.....................................
|
55,436,087
|
$
554
|
$
588,024
|
$
(287 )
|
$
368,189
|
$
956,480
|
|
|
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd.
|
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Year ended
December 31,
2015
|
Year ended
December 31,
2016
|
|
(in thousands)
|
(in thousands)
|
|
|
|
Cash flows from
operating activities
|
|
|
Net
income.............................................................................................................................................................................................................................
|
$
98,094
|
$
44,638
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
Depreciation and
amortization...................................................................................................................................................................................................................
|
53,453
|
62,280
|
Payment of drydocking
costs..................................................................................................................................................................................................................................
|
(11,558 )
|
(9,902 )
|
Share-based
compensation.................................................................................................................................................................................................................
|
1,643
|
1,573
|
Amortization of
deferred financing
costs..................................................................................................................................................................................................................................
|
4,806
|
3,091
|
Profit from sale of
vessel................................................................................................................................................................................................................................
|
(550 )
|
—
|
Vessel write down
following
collision............................................................................................................................................................................................................................
|
10,500
|
—
|
Insurance recoverable
from vessel
repairs...............................................................................................................................................................................................................................
|
(10,289 )
|
60
|
Unrealized foreign
exchange.........................................................................................................................................................................................................................
|
(205 )
|
208
|
Changes in
operating assets and liabilities
|
|
|
Accounts
receivable........................................................................................................................................................................................................................
|
(1,855 )
|
1,991
|
Inventories............................................................................................................................................................................................................................
|
1,331
|
(3,457 )
|
Prepaid expenses and
other current
assets................................................................................................................................................................................................................................
|
(4,408 )
|
(7,694 )
|
Accounts payable and
other
liabilities...........................................................................................................................................................................................................................
|
8,394
|
(6,040 )
|
Long-term accounts
receivable........................................................................................................................................................................................................................
|
198
|
—
|
|
|
|
Net cash provided
by operating
activities..........................................................................................................................................................................................................................
|
149,554
|
86,748
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
Payment to acquire
vessels..............................................................................................................................................................................................................................
|
(3,348 )
|
(1,733 )
|
Payment for vessels
under
construction....................................................................................................................................................................................................................
|
(236,648 )
|
(239,179 )
|
Purchase of other
property, plant and
equipment.......................................................................................................................................................................................................................
|
(142 )
|
(75 )
|
Receipt of shipyard
penalty
payments.........................................................................................................................................................................................................................
|
1,933
|
1,901
|
Insurance
recoveries.........................................................................................................................................................................................................................
|
391
|
9,374
|
Capitalized costs for
the repair of Navigator
Aries..................................................................................................................................................................................................................................
|
—
|
(8,441 )
|
Proceeds from sale of
vessel net of
costs..................................................................................................................................................................................................................................
|
31,958
|
—
|
|
|
|
Net cash used in
investing
activities..........................................................................................................................................................................................................................
|
(205,856 )
|
(238,153 )
|
|
|
|
Cash flows from
financing activities
|
|
|
Proceeds from secured
term loan facilities and revolving credit
facilities............................................................................................................................................................................................................................
|
157,700
|
327,670
|
Direct financing
costs of secured term loan
facilities............................................................................................................................................................................................................................
|
(5,879 )
|
(2,680 )
|
Repayment of secured
term loan facilities and revolving credit
facilities............................................................................................................................................................................................................................
|
(70,266 )
|
(204,092 )
|
|
|
|
Net cash /
provided by financing
activities..........................................................................................................................................................................................................................
|
81,555
|
120,898
|
|
|
|
Net increase /
(decrease) in cash and cash
equivalents.....................................................................................................................................................................................................................
|
25,253
|
(30,507 )
|
|
|
|
Cash and cash
equivalents at beginning of
period..............................................................................................................................................................................................................................
|
62,526
|
87,779
|
|
|
|
Cash and cash
equivalents at end of
period..............................................................................................................................................................................................................................
|
$
87,779
|
$
57,272
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
Total interest paid
during the year, net of amounts
capitalized.......................................................................................................................................................................................................................
|
$
24,427
|
$
29,815
|
|
|
|
Total tax paid during
the
period...............................................................................................................................................................................................................................
|
$
632
|
$
601
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-fourth-quarter-and-financial-year-2016-results-300416496.html
SOURCE Navigator Gas