LONDON, March 5, 2018 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (NYSE: NVGS) (the "Company") reports
operating revenue of $76.7 million for the three months ended
December 31, 2017 and $298.6 million for the full year ended
December 31, 2017.
- Maintained strong utilization of 87.2% for the three months
ended December 31, 2017 and 87.6% for
the year ended December 31, 2017
despite the market downturn.
- Net income was $1.4 million
(or $0.03 per share) for the three
months ended December 31, 2017 and $5.3 million (or $0.10 per share) for the year ended
December 31, 2017, which includes a one-off cost totaling
$3.5 million (or $0.06 per share) associated with the redemption
of the Company's senior unsecured bonds.
- EBITDA(1) was $29.6 million for the three months ended
December 31, 2017 and $120.8 million for the year ended
December 31, 2017.
- The Company has continued to benefit from the increasing demand
for the transportation of long-haul petrochemical gases, with
petrochemicals accounting for 84% of all spot days during
2017.
- Took delivery of the remaining five newbuilding vessels during
2017, increasing our fleet to 38 vessels. The Company's newbuild
program is complete.
- During 2017 we took an additional four vessels into in-house
technical management with an additional vessel in January 2018 taking the total number of in-house
technical managed vessels to nine.
- Commenced three year charters with Braskem for two of our
ethane/ethylene capable vessels taking ethane from Morgan's Point, Houston to Braskem's ethylene complex in
Brazil.
- Since the year end, we successfully renewed a contract of
affreightment with Mitsubishi International Corporation to utilize
three vessels for the majority of 2018 taking ethylene from the
Targa terminal, in Houston to Far
East Asia.
- Since the year end, we entered into a 50/50 joint venture
agreement with Enterprise Product Partners to build a new ethylene
marine export terminal along the U.S. Gulf Coast that will have the
capacity to export approximately one million tons of ethylene per
year. The export terminal is expected to be in service by the first
quarter of 2020. The project is supported by long-term contracts
with customers that include U.S. ethylene producer Flint Hills
Resources and a major international trading company.
Fourth Quarter 2017 Financial Results Overview
Operating revenue for the three months ended December 31,
2017 was $76.7 million, an
increase of $1.2 million, or
1.6%, compared to the $75.5 million of operating revenue for the
three months ended December 31, 2016.
For the fourth quarter of 2017, the average time charter
equivalent rate ("TCE") (2) across the entire fleet,
including our fully-refrigerated vessels, was $626,161 per calendar month ($20,586 per day), compared to $692,213 per calendar month ($22,758 per day) for the comparable period in
2016.
Fleet utilization across the 38 vessels operating at the year
end was 87.2% for the fourth quarter of 2017, down from 89.5% in
the fourth quarter of 2016.
Operating revenue less voyage expenses amounted to $61.9 million for the three months ended
December 31, 2017 compared to $61.5 million in the same three month period
of 2016. This decrease was as a result of a reduction in TCE rates
of $6.7 million, a reduction in
utilization rates of $1.7 million, offset by an $8.8 million increase due to additional vessels
in our fleet during the three months ended December 31, 2017
compared to the three months ended December 31, 2016.
Net income was $1.4 million
for the three months ended December 31, 2017, or $0.03 per share compared to $7.6 million or $0.14 per share for the same period in 2016.
EBITDA(1) for the fourth quarter of 2017 was
$29.6 million and $120.8 million for the full year ended
December 31, 2017.
(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)
|
|
2016
|
2017
|
2016
|
2017
|
|
|
|
|
|
Net income
|
$
7,646
|
$
1,411
|
$
44,638
|
$
5,310
|
Net interest
expense
|
8,940
|
9,324
|
32,142
|
41,475
|
Income
taxes
|
575
|
6
|
1,177
|
397
|
Depreciation and
amortization
|
16,625
|
18,863
|
62,280
|
73,588
|
|
|
|
|
|
EBITDA
|
$
33,786
|
$
29,604
|
$
140,237
|
$
120,770
|
|
|
|
|
|
(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, 2016
|
Three months ended
December 31, 2017
|
Fleet
Data:
|
|
|
Operating
revenue
|
$
75,455
|
$
76,684
|
Voyage
expenses
|
13,914
|
14,781
|
|
|
|
Operating revenue
less Voyage expenses
|
61,541
|
61,903
|
Operating
days
|
2,704
|
3,007
|
Average daily time
charter equivalent rate
|
$
22,758
|
$
20,586
|
Conference Call Details:
Tomorrow, Tuesday, March 6, 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.
A telephonic replay of the conference call will be available
until Tuesday, March 13, 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#
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:
|
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 investment in an ethylene marine
terminal in the U.S. Gulf and our expectations regarding the
financial success of such terminal; 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, 2016
|
December 31, 2017
|
|
(in thousands, except
share data)
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
57,272
|
$
62,109
|
Accounts receivable,
net
|
7,059
|
14,889
|
Accrued
income
|
13,134
|
15,791
|
Prepaid expenses and
other current assets
|
8,541
|
10,964
|
Bunkers and lubricant
oils
|
6,937
|
8,008
|
Insurance
recoverable
|
855
|
376
|
|
|
|
Total current
assets
|
93,798
|
112,137
|
Non-current
assets
|
|
|
Vessels in operation,
net
|
1,480,359
|
1,740,139
|
Vessels under
construction
|
150,492
|
—
|
Property, plant and
equipment, net
|
194
|
1,611
|
|
|
|
Total non-current
assets
|
1,631,045
|
1,741,750
|
|
|
|
Total
assets
|
$
1,724,843
|
$
1,853,887
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities
|
|
|
Current portion of
secured term loan facilities,
net of deferred financing costs
|
$
78,464
|
$
81,559
|
Senior unsecured
bond
|
25,000
|
—
|
Accounts
payable
|
6,388
|
8,071
|
Accrued expenses and
other liabilities
|
11,377
|
12,478
|
Accrued
interest
|
2,932
|
3,500
|
Deferred
income
|
3,522
|
4,824
|
|
|
|
Total current
liabilities
|
127,683
|
110,432
|
|
|
|
Non-current
Liabilities
|
|
|
Secured term loan
facilities, net of current portion
and deferred financing costs
|
540,680
|
681,658
|
Senior unsecured
bond, net of deferred financing costs
|
100,000
|
98,584
|
|
|
|
Total non-current
liabilities
|
640,680
|
780,242
|
|
|
|
Total
Liabilities
|
768,363
|
890,674
|
Commitments and
contingencies (see note 12)
|
|
|
Stockholders'
equity
|
|
|
Common stock—$.01 par
value per share;
400,000,000 shares authorized; 55,529,762
shares issued and outstanding, (2016: 55,436,087)
|
554
|
555
|
Additional paid-in
capital
|
588,024
|
589,436
|
Accumulated other
comprehensive loss
|
(287 )
|
(277)
|
Retained
earnings
|
368,189
|
373,499
|
|
|
|
Total stockholders'
equity
|
956,480
|
963,213
|
|
|
|
Total liabilities and
stockholders' equity
|
$
1,724,843
|
$
1,853,887
|
|
|
|
Navigator Holdings
Ltd.
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
|
December
31,
|
|
December
31,
|
|
|
(in thousands except
share and per share data)
|
|
(in thousands except
share and per share data)
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Operating
revenue
|
$
|
75,455
|
$
|
76,684
|
$
|
294,112
|
$
|
298,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Brokerage
commissions
|
|
1,430
|
|
1,263
|
|
5,812
|
|
5,368
|
Voyage
expenses
|
|
13,914
|
|
14,781
|
|
42,201
|
|
55,542
|
Vessel operating
expenses
|
|
22,611
|
|
26,956
|
|
90,854
|
|
100,968
|
Depreciation and
amortization
|
|
16,625
|
|
18,863
|
|
62,280
|
|
73,588
|
General and
administrative costs
|
|
3,348
|
|
3,554
|
|
12,528
|
|
13,816
|
Other corporate
expenses
|
|
366
|
|
526
|
|
1,976
|
|
2,131
|
Insurance recoverable
from vessel repairs
|
|
-
|
|
-
|
|
504
|
|
-
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
58,294
|
|
65,943
|
|
216,155
|
|
251,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
17,161
|
|
10,741
|
|
77,957
|
|
47,182
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(8,879)
|
|
(9,967)
|
|
(32,321)
|
|
(37,691)
|
Write off of deferred
finance costs
|
|
(102)
|
|
495
|
|
(102)
|
|
(786)
|
Write off of call
premium and redemption charges of 9.00% unsecured bond
|
|
-
|
|
-
|
|
-
|
|
(3,517)
|
Interest
income
|
|
41
|
|
148
|
|
281
|
|
519
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
8,221
|
|
1,417
|
|
45,815
|
|
5,707
|
Income
taxes
|
|
(575)
|
|
(6)
|
|
(1,177)
|
|
(397)
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
7,646
|
$
|
1,411
|
$
|
44,638
|
$
|
5,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic:
|
$
|
0.14
|
$
|
0.03
|
$
|
0.81
|
$
|
0.10
|
Diluted:
|
$
|
0.14
|
$
|
0.03
|
$
|
0.80
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic:
|
|
55,436,087
|
|
55,529,762
|
|
55,418,626
|
|
55,508,974
|
Diluted:
|
|
55,810,365
|
|
55,898,502
|
|
55,794,481
|
|
55,881,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd.
|
Consolidated
Statements of Comprehensive Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
|
December
31,
|
|
December
31,
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
7,646
|
$
|
1,411
|
$
|
44,638
|
$
|
5,310
|
Other
Comprehensive Income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain/(loss)
|
|
114
|
|
(242)
|
|
178
|
|
10
|
|
|
|
|
|
|
|
|
|
Total
Comprehensive Income
|
|
7,760
|
|
1,169
|
|
44,816
|
|
5,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Stockholders' Equity
|
(Unaudited)
|
(in thousands, except
share data)
|
|
Common
stock
|
|
|
|
|
|
Number of
shares
|
Amount 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
|
Restricted shares
issued March 23, 2017
|
93,675
|
1
|
—
|
—
|
—
|
1
|
Net income
|
—
|
—
|
—
|
—
|
5,310
|
5,310
|
Foreign currency
translation
|
—
|
—
|
—
|
10
|
—
|
10
|
Share-based
compensation plan
|
—
|
—
|
1,412
|
—
|
—
|
1,412
|
|
|
|
|
|
|
|
December 31,
2017
|
55,529,762
|
$
555
|
$
589,436
|
$
(277)
|
$373,499
|
$ 963,213
|
|
|
|
|
|
|
|
Navigator Holdings
Ltd.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
Year ended
December 31,
2016
(in thousands)
|
Year ended
December 31,
2017
(in thousands)
|
Cash flows from
operating activities
|
|
|
Net income
|
$
44,638
|
$
5,310
|
Adjustments to
reconcile net income
to net cash provided by operating activities
|
|
|
Depreciation and
amortization
|
62,280
|
73,588
|
Payment of drydocking
costs
|
(9,902)
|
(268)
|
Amortization of
share-based compensation
|
1,573
|
1,412
|
Amortization of
deferred financing costs
|
3,091
|
3,217
|
Call option premium
on redemption of 9.00% unsecured bond
|
—
|
2,500
|
Prior year expenses
recovered from insurance claim
|
—
|
(504)
|
Insurance claim
debtor
|
60
|
(7)
|
Unrealized foreign
exchange
|
208
|
3
|
Changes in
operating assets and liabilities
|
|
|
Accounts
receivable
|
1,991
|
(7,831)
|
Bunkers and lubricant
oils
|
(3,457)
|
(1,074)
|
Prepaid expenses and
other current assets
|
(7,694)
|
(5,079)
|
Accounts payable,
accrued interest and other liabilities
|
(6,040)
|
4,654
|
|
|
|
Net cash provided
by operating activities
|
86,748
|
75,921
|
|
|
|
Cash flows from
investing activities
|
|
|
Payment to acquire
vessels
|
(1,733)
|
(1,940)
|
Payment for vessels
under construction
|
(239,179 )
|
(180,629 )
|
Purchase of other
property, plant and equipment
|
(75 )
|
(1,726)
|
Receipt of shipyard
penalty payments
|
1,901
|
280
|
Placement of short
term investment
|
—
|
(25,000)
|
Release of short term
investment
|
—
|
25,000
|
Insurance
recoveries
|
9,374
|
990
|
Capitalized costs for
the repair of Navigator Aries
|
(8,441 )
|
—
|
|
|
|
Net cash used in
investing activities
|
(238,153)
|
(183,025)
|
|
|
|
Cash flows from
financing activities
|
|
|
Proceeds from secured
term loan facilities
|
327,670
|
395,170
|
Issuance of 7.75%
senior unsecured bonds
|
—
|
100,000
|
Repayment of 9.00%
senior unsecured bonds
|
—
|
(127,500 )
|
Issuance cost of
7.75% senior unsecured bonds
|
—
|
(1,819 )
|
Direct financing cost
of secured term loan facilities
|
(2,680 )
|
(2,058)
|
Repayment of secured
term loan facilities
|
(204,092 )
|
(251,852)
|
|
|
|
Net cash provided
by financing activities
|
120,898
|
111,941
|
|
|
|
Net (decrease) /
increase in cash and cash equivalents
|
(30,507)
|
4,837
|
Cash and cash
equivalents at beginning of year
|
87,779
|
57,272
|
|
|
|
Cash and cash
equivalents at end of year
|
$
57,272
|
$
62,109
|
|
|
|
Supplemental
Information
|
|
|
Total interest paid
during the year, net of amounts capitalized
|
$
29,815
|
$
35,890
|
|
|
|
Total tax paid during
the year
|
$
601
|
$
515
|
View original
content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-fourth-quarter-and-financial-year-2017-results-300608426.html
SOURCE Navigator Gas