LONDON, Aug. 7, 2017 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (NYSE: NVGS) (the "Company") reported
operating revenue of $74.4 million
for the three months ended June 30,
2017.
- Net income was $2.3 million for
the three months ended June 30, 2017
with earnings per share of $0.04.
- Utilization increased to 89.2% for the six months ended
June 30, 2017 compared to 86.8% for
the six months ended June 30,
2016.
- Adjusted EBITDA(1) was $30.6
million for the three months ended June 30, 2017.
- Took delivery of Navigator Yauza a handysize
semi-refrigerated ice class vessel from HMD, on April 5, 2017. The vessel commenced a long-term
time charter following delivery.
- Took delivery of Navigator Jorf a midsize
fully-refrigerated vessel from HMD on July
20, 2017. The vessel will commence on a long-term time
charter later this month.
- On June 30, 2017, the Company
entered into a new $160.8 million
secured term loan and revolving credit facility, to refinance a
loan with an outstanding balance of $143.0
million, that was due to mature in February 2018.
- The Company has benefited from increasing demand for the
transportation of petrochemicals gases, with the proportion of our
total revenue from long-haul trade increasing to 53% in the second
quarter 2017 from 42% in the second quarter 2016.
- On July 12, 2017, the Company and
Enterprise Product Partners L.P. announced the execution of a
letter of intent to jointly develop an ethylene marine export
terminal on the Houston Ship Channel. We have extensive experience
with ethylene shipping through our fleet of 14 ethylene-capable
vessels that provide a virtual pipeline to deliver ethylene to
consuming customers.
Charter revenue for the three months ended June 30, 2017 remained significantly focused
around the petrochemical sector, as was the case during the first
quarter of 2017. The petrochemical contracts of affreightment we
hold for transporting ethylene from the U.S. and a broad spectrum
of olefins from Brazil have been
active. We have also entered into two time charters for two of
our fully-refrigerated vessels during the second quarter of 2017,
with one vessel transporting LPG to Mexico and the other transporting LPG to
southern Africa, a new market for
us. Such commitments, along with our other time charters, have
provided support to our business in a period when the LPG segment
continues to experience headwinds. Earnings across all LPG shipping
segments continue to be weak, with the Very Large Gas Carrier
Baltic index reaching a floor at $6,000 earnings per day. Uncertainties with the
geographical location, timings and quantities of usual
petrochemical supplies from the Middle
East and Europe have
limited spot activity for our voyage charter vessels during the
three months ended June 30, 2017.
Going into the second half of the year, we are committed to
transport incremental ethylene volume from Europe to Asia on two of our ethylene capable vessels
and in addition we will deliver two separate ethylene vessels to
Braskem on three year charters for the commencement of their ethane
contracts. We believe that these two contracts, combined with
existing charter commitments, will help support fleet employment
and utilization for the second half of 2017.
1 EBITDA and Adjusted EBITDA are non-GAAP financial
measures. EBITDA represents net income before net interest expense,
income taxes and depreciation and amortization. Adjusted EBITDA
represents net income before net interest expense, income taxes,
depreciation and amortization and the write off of deferred
financing costs. Management believes that EBITDA and Adjusted
EBITDA are useful to investors in evaluating the operating
performance of the Company. EBITDA and Adjusted EBITDA do not
represent and should not be considered as alternatives to any
financial measure prepared in accordance with U.S. GAAP, and our
calculation of EBITDA and Adjusted EBITDA may not be comparable to
that reported by other companies. See the table below for a
reconciliation of EBITDA and Adjusted 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 and adjusted EBITDA for the three months ended June 30, 2017:
|
|
|
$
'000's
|
Net income
|
$
2,254
|
Interest
expense
|
9,372
|
Interest
income
|
(119 )
|
Income
taxes
|
130
|
Depreciation and
amortization
|
18,304
|
|
|
EBITDA
|
$
29,941
|
Write off of deferred
financing costs
|
627
|
|
|
Adjusted
EBITDA
|
$
30,568
|
|
|
A Form 6-K with more detailed information on our second quarter
2017 financial results is being filed with the U.S. Securities and
Exchange Commission simultaneous with this release for the quarter
ended June 30, 2017.
Conference Call Details:
Tomorrow, Tuesday, August 8, 2017, at 9:00 A.M. ET, the Company's management team will
host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 (866) 819-7111
(US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or
+44 (0)1452-542-301 (Standard International Dial In). Please quote
"Navigator" to the operator.
There will also be a live, and then archived, webcast of the
conference call, available through the Company's website
(www.navigatorgas.com). Participants to the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
A telephonic replay of the conference call will be available
until Tuesday, August 15, 2017 by dialing 1(866) 247-4222 (US
Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44
(0)1452 550-000 (Standard International Dial In). Access Code:
11870348#
Navigator Gas
Attention: Investor Relations
New
York:
650 Madison Ave, 25th Floor, New York,
NY 10022. Tel: +1 212 355 5893
London:
10 Bressenden Place, London, SW1E
5DH. Tel: +44 (0)20 7340 4850
About Us
Navigator Gas is the owner and operator of the world's largest
fleet of handysize liquefied gas carriers and provides
international and regional seaborne transportation services of
liquefied petroleum gas, petrochemical gases and ammonia for energy
companies, industrial users and commodity traders.
Navigator's fleet consists of 38 semi- or fully-refrigerated
liquefied gas carriers, including one newbuilding scheduled for
delivery by the end of October
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;
- 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 receipt of our remaining newbuilding
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;
- potential liability from future litigation;
- our expectations relating to the payment of dividends;
- our expectation regarding providing in-house technical
management for certain vessels in our fleet and our success in
providing such in-house technical management;
- our ability to enter into a definitive agreement with
Enterprise regarding the proposed joint development of an ethylene
marine export terminal on the Houston Ship Channel, our
expectations regarding the ability to obtain sufficient long-term
customer commitments for such terminal, and our expectations
regarding the financial success of such terminal; and
- other factors detailed from time to time in other periodic
reports we file with the Securities and Exchange Commission.
We expressly disclaim any obligation to update or revise any of
these forward-looking statements, whether because of future events,
new information, a change in our views or expectations, or
otherwise. We make no prediction or statement about the performance
of our common stock.
|
Navigator Holdings
Ltd
|
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
December 31,
2016
|
June 30,
2017
|
|
(in thousands except share data)
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
57,272
|
$
28,798
|
Short-term
investments
|
—
|
25,000
|
Accounts receivable,
net
|
7,059
|
13,150
|
Accrued
income
|
13,134
|
12,688
|
Prepaid expenses and
other current assets
|
8,541
|
11,317
|
Bunkers and lubricant
oils
|
6,937
|
7,398
|
Insurance
recoverable
|
855
|
370
|
Total current
assets
|
93,798
|
98,721
|
|
|
|
Non-current
assets
|
|
|
Vessels in operation,
net
|
1,480,359
|
1,638,217
|
Vessels under
construction
|
150,492
|
55,077
|
Property, plant and
equipment, net
|
194
|
1,578
|
Total non-current
assets
|
1,631,045
|
1,694,872
|
Total
assets
|
$
1,724,843
|
$
1,793,593
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities
|
|
|
Current portion of
long-term debt, net of deferred financing costs
|
$
78,464
|
$
71,959
|
Senior unsecured
bond
|
25,000
|
—
|
Accounts
payable
|
6,388
|
7,889
|
Accrued expenses and
other liabilities
|
11,377
|
10,578
|
Accrued
interest
|
2,932
|
4,917
|
Deferred
income
|
3,522
|
3,438
|
Total current
liabilities
|
127,683
|
98,781
|
|
|
|
Non-current
liabilities
|
|
|
Secured term loan
facilities, net of current portion and deferred financing
costs
|
540,680
|
632,401
|
Senior unsecured
bond
|
100,000
|
100,000
|
Total non-current
liabilities
|
640,680
|
732,401
|
Total
liabilities
|
768,363
|
831,182
|
Commitments and
contingencies (see note 9)
|
|
|
Stockholders'
equity
|
|
|
Common stock—$.01 par
value; 400,000,000 shares authorized;
55,531,831 shares issued
and outstanding, (2016:
55,436,087)
|
554
|
555
|
Additional paid-in
capital
|
588,024
|
588,797
|
Accumulated other
comprehensive loss
|
(287 )
|
(122 )
|
Retained
earnings
|
368,189
|
373,181
|
Total stockholders'
equity
|
956,480
|
962,411
|
Total liabilities
and stockholders' equity
|
$
1,724,843
|
$
1,793,593
|
|
|
|
Navigator Holdings
Ltd
|
|
|
|
Consolidated
Statements of Income
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
(in thousands except
share data)
|
|
(in thousands except
share data)
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Operating
revenue
|
$
|
72,541
|
$
|
74,381
|
$
|
148,916
|
$
|
151,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Brokerage
commissions
|
|
1,508
|
|
1,389
|
|
3,009
|
|
2,914
|
|
Voyage
expenses
|
|
9,326
|
|
13,516
|
|
16,419
|
|
28,515
|
|
Vessel operating
expenses
|
|
23,712
|
|
25,001
|
|
46,117
|
|
48,906
|
|
Depreciation and
amortization
|
|
15,275
|
|
18,304
|
|
29,851
|
|
35,938
|
|
General and
administrative costs
|
|
3,103
|
|
3,578
|
|
6,060
|
|
6,330
|
|
Other corporate
expenses
|
|
683
|
|
329
|
|
1,233
|
|
952
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
53,607
|
|
62,117
|
|
102,689
|
|
123,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
18,934
|
|
12,264
|
|
46,227
|
|
28,145
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(7,702)
|
|
(9,372)
|
|
(15,485)
|
|
(18,298)
|
|
Write off of deferred
financing costs
|
|
-
|
|
(627)
|
|
-
|
|
(1,281)
|
|
Write off of call
premium and
redemption charges on
9% unsecured
bond
|
|
-
|
|
-
|
|
-
|
|
(3,517)
|
|
Interest
income
|
|
91
|
|
119
|
|
169
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
11,323
|
|
2,384
|
|
30,911
|
|
5,281
|
|
Income
taxes
|
|
(202)
|
|
(130)
|
|
(396)
|
|
(289)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
11,121
|
$
|
2,254
|
$
|
30,515
|
$
|
4,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic:
|
$
|
0.20
|
$
|
0.04
|
$
|
0.55
|
$
|
0.09
|
|
Diluted:
|
$
|
0.20
|
$
|
0.04
|
$
|
0.55
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic:
|
|
55,437,695
|
|
55,531,831
|
|
55,401,805
|
|
55,488,984
|
|
Diluted:
|
|
55,812,935
|
|
55,905,571
|
|
55,778,768
|
|
55,862,724
|
|
|
|
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd
|
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
Six Months ended
June 30,
2016
|
Six
Months ended
June 30,
2017
|
|
(in
thousands)
|
(in
thousands)
|
Cash flows from
operating activities
|
|
|
Net income
|
$
30,515
|
$
4,992
|
Adjustments to
reconcile net income to net cash
provided by operating activities
|
|
|
Depreciation and
amortization
|
29,851
|
35,938
|
Payment of drydocking
costs
|
(7,309 )
|
(33)
|
Insurance claim
debtor
|
(292 )
|
—
|
Call option premium
on redemption of 9.00% unsecured bond
|
—
|
2,500
|
Prior year expenses
recovered in insurance claim
|
—
|
(504)
|
Amortization of
share-based compensation
|
787
|
773
|
Amortization of
deferred financing costs
|
1,471
|
2,508
|
Unrealized foreign
exchange
|
25
|
155
|
Changes in
operating assets and liabilities
|
|
|
Accounts
receivable
|
(243 )
|
(6,091 )
|
Inventories
|
(2,334)
|
(461 )
|
Accrued income and
prepaid expenses and other current assets
|
(10,092 )
|
(2,329 )
|
Accounts payable,
accrued interest and other liabilities
|
(3,336)
|
2,604
|
Net cash provided
by operating activities
|
39,043
|
40,052
|
Cash flows from
investing activities
|
|
|
Payment to acquire
vessels
|
(1,141)
|
(1,352 )
|
Payment for vessels
under construction
|
(84,665 )
|
(97,147 )
|
Purchase of other
property, plant and equipment
|
(25 )
|
(1,506 )
|
Receipt of shipyard
penalty payments
|
417
|
280
|
Insurance
recoveries
|
4,700
|
991
|
Capitalized costs for
the repairs of Navigator Aries
|
(8,732 )
|
—
|
Placement of short
term investment
|
—
|
(25,000 )
|
Net cash used in
investing activities
|
(89,446)
|
(123,734 )
|
Cash flows from
financing activities
|
|
|
Proceeds from secured
term loan facilities
|
62,300
|
142,508
|
Issuance of 7.75%
senior unsecured bonds
|
—
|
100,000
|
Repayment of 9.00%
senior unsecured bonds
|
—
|
(127,500 )
|
Issuance costs of
7.75% senior unsecured bonds
|
—
|
(1,819 )
|
Direct financing
costs of senior term loan facilities
|
(155 )
|
—
|
Repayment of secured
term loan facilities
|
(32,658 )
|
(57,981 )
|
Net cash provided
by financing activities
|
29,487
|
55,208
|
Net decrease in
cash and cash equivalents
|
(20,916 )
|
(28,474 )
|
Cash and cash
equivalents at beginning of period
|
87,779
|
57,272
|
Cash and cash
equivalents at end of period
|
$
66,863
|
$
28,798
|
|
|
|
Supplemental
Information
|
|
|
Total interest paid
during the period, net of amounts capitalized
|
$
16,193
|
$
15,799
|
Total tax paid during
the period
|
$
370
|
$
317
|
|
|
|
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SOURCE Navigator Gas