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
|
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EBITDA
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$ 30,531
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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.
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Navigator Holdings Ltd.
|
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
March 31,
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
outstanding, (2017:
55,529,762)...............................................................................................................
|
555
|
557
|
|
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
March 31,
2017
|
Three Months ended
March 31,
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