May 8, 2017 - 4:06 PM EDT
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Navigator Holdings Ltd. Announces Preliminary Results for the Three Months Ended March 31, 2017

LONDON, May 8, 2017 /PRNewswire/ --

Highlights  

- Navigator Holdings Ltd. reported net income of $2.7 million for the three months ended March 31, 2017 and earnings per share of $0.05, which included one-off costs totaling $4.2 million (or $0.07 per share) associated with the redemption of the Company's senior unsecured bonds that were due to mature in December 2017.

- Utilization increased to 92.4% for the three months ended March 31, 2017 compared to 87.6% for the three months ended March 31, 2016.

- Adjusted EBITDA[1] was $33.5 million for the three months ended March 31, 2017.

- Took delivery of Navigator Nova the third of our four midsize semi-refrigerated ethane/ethylene capable vessels from Jiangnan, on January 12, 2017. Navigator Nova commenced on a time charter following delivery.

- Took delivery of Navigator Luga on January 24, 2017 and on April 5, 2017 Navigator Yauza, a sister ship, was delivered. These two handysize semi-refrigerated vessels from HMD immediately commenced on long term time charters.

- On February 10, 2017, the Company successfully issued 7.75% senior unsecured bonds in an aggregate principle amount of $100.0 million. The net proceeds of the issue together with the cash in hand were used to redeem in full $125.0 million of outstanding 9.0% senior unsecured bonds.

- 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 from 20% in the first quarter 2016 to approximately 52% in the first quarter 2017.

Charter revenue from the seaborne transportation of petrochemical gases continues to represent a significant percentage of our total revenue. For the first quarter of 2017, our revenue from the seaborne transportation of petrochemical gases represented approximately 52% of our total charter revenue. This reflects our migration towards a greater involvement in the olefins business, primarily through the seaborne transportation of ethylene, butadiene and propylene, which are used in the production process by the plastic industry. The ability to diversify into petrochemical olefins gases in addition to liquefied petroleum gases has improved our utilisation rate, which averaged approximately 92.4% for the first quarter of 2017. We continue to experience competition from the larger fully-refrigerated gas carriers, limiting much of the potential charter rate upside for the transportation of fully refrigerated LPG. We believe that the LPG freight environment must absorb a world orderbook of 38 Very Large Gas Carriers and 18 Medium Size Gas Carriers before we could begin to see any meaningful sustained rise in charter rates for the transportation of LPG.

[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 other financing costs related to the redemption of debt. 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 March 31, 2017:

   

                                                                         $ '000's
    Net income                                                            $ 2,738
    Interest expense                                                        8,927
    Interest income                                                          (113)
    Income taxes                                                              159
    Depreciation and amortization                                          17,634

    EBITDA                                                               $ 29,345
    Write off of call premium and redemption charges on 9% unsecured
    bond                                                                    3,517
    Write off of deferred financing costs                                     653
    Adjusted EBITDA                                                      $ 33,515

A Form 6-K with more detailed information on our first quarter 2017 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended March 31, 2017.

Conference Call Details:  

Tomorrow, Tuesday, May 9, 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 (http://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, May 16, 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 Department  

New  York:    399 Park Avenue, 38th 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 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 two 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;

•    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 that matures in 2018 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 two 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;

•    potential liability from future litigation;

•    our expectations relating to the payment of dividends;

•    our expectation that we will continue to provide in-house technical management for some vessels in our fleet and our success in providing such in-house technical management; 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,  March 31,
                                                                     2016         2017

                                                                   (in thousands except
                                                                        share data)

    Assets
    Current assets
    Cash and cash equivalents                                    $ 57,272     $ 45,648
    Accounts receivable, net                                        7,059       12,270
    Accrued income                                                 13,134       13,780
    Prepaid expenses and other current assets                       8,541       11,387
    Inventories                                                     6,937        7,283
    Insurance recoverable                                             855          370

    Total current assets                                           93,798       90,738
    Non-current assets
    Vessels in operation, net                                   1,480,359    1,601,279
    Vessels under construction                                    150,492       96,932
    Property, plant and equipment, net                                194        1,309

    Total non-current assets                                    1,631,045    1,699,520

    Total assets                                              $ 1,724,843  $ 1,790,258

    Liabilities and stockholders' equity
    Current liabilities
    Current portion of long-term debt, net of deferred financing
    costs                                                        $ 78,464    $ 215,526
    Senior unsecured bond                                          25,000            -
    Accounts payable                                                6,388        5,618
    Accrued expenses and other liabilities                         11,377       12,395
    Accrued interest                                                2,932        3,434
    Deferred income                                                 3,522        3,095

    Total current liabilities                                     127,683      240,068

    Non-current liabilities
    Secured term loan facilities, net of current portion and
    deferred financing costs                                      540,680      490,538
    Senior unsecured bond                                         100,000      100,000

    Total non-current liabilities                                 640,680      590,538

    Total liabilities                                             768,363      830,606
    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      588,432
    Accumulated other comprehensive loss                             (287)        (262)
    Retained earnings                                             368,189      370,927

    Total stockholders' equity                                    956,480      959,652

    Total liabilities and stockholders' equity                $ 1,724,843  $ 1,790,258

                                                                 Navigator Holdings Ltd.
                                                          Consolidated Statements of Income
                                                                      (Unaudited)  

                                                                    Three months ended
                                                                         March 31,
                                                                     2016         2017
                                                                   (in thousands except
                                                                        share data)

    Revenues
    Operating revenue                                            $ 76,375     $ 77,320

    Expenses
    Brokerage commissions                                           1,502        1,525
    Voyage expenses                                                 7,093       15,000
    Vessel operating expenses                                      22,405       23,905
    Depreciation and amortization                                  14,575       17,634
    General and administrative costs                                2,957        2,752
    Other corporate expenses                                          550          623

    Total operating expenses                                       49,082       61,439

    Operating income                                               27,293       15,881
    Other income/(expense)
    Interest expense                                               (7,783)      (8,927)
    Write off of call premium and redemption charges on 9%
    unsecured bond                                                      -       (3,517)
    Write off of deferred financing costs                               -         (653)
    Interest income                                                    78          113

    Income before income taxes                                     19,588        2,897
    Income taxes                                                     (194)        (159)

    Net income                                                   $ 19,394      $ 2,738

    Earnings per share:
    Basic:                                                         $ 0.35       $ 0.05
    Diluted:                                                       $ 0.35       $ 0.05

    Weighted average number of shares outstanding:
    Basic:                                                     55,365,557   55,445,661
    Diluted:                                                   55,743,997   55,819,401

                                                          Navigator Holdings Ltd.
                                                  Consolidated Statements of Cash Flows
                                                                  (Unaudited)  

  

                                                          Three Months    Three Months
                                                              ended           ended
                                                            March 31,       March 31,
                                                              2016            2017

                                                         (in thousands)  (in thousands)

    Cash flows from operating activities
    Net income                                             $ 19,394         $ 2,738
    Adjustments to reconcile net income to net cash
    provided by operating activities
    Depreciation and amortization                            14,575          17,634
    (Payment) / credit of drydocking costs                   (2,030)              9
    Insurance claim debtor                                     (418)              -
    Call option on redemption of 9.00% unsecured bond             -           2,500
    Amortization of share-based compensation                    395             409
    Amortization of deferred financing costs                    732           1,345
    Unrealized foreign exchange                                  17              17
    Changes in operating assets and liabilities
    Accounts receivable                                      (2,208)         (5,211)
    Inventories                                              (1,197)           (346)
    Accrued income and prepaid expenses and other current
    assets                                                   (6,795)         (3,492)
    Accounts payable, accrued interest and other
    liabilities                                              (5,347)            323

    Net cash provided by operating activities                17,118          15,926

    Cash flows from investing activities
    Payment to acquire vessels                                 (247)           (636)
    Payment for vessels under construction                  (39,212)        (84,597)
    Purchase of other property, plant and equipment             (17)         (1,160)
    Receipt of shipyard penalty payments                        417             280
    Insurance recoveries                                      4,700             486
    Capitalized costs for the repairs of Navigator Aries     (8,351)              -

    Net cash used in investing activities                   (42,710)        (85,627)

    Cash flows from financing activities
    Proceeds from secured term loan facilities               31,150         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)
    Direct financing costs of senior term loan facilities      (155)              -
    Repayment of secured term loan facilities               (16,051)        (19,433)

    Net cash provided by financing activities                14,944          58,077

    Net decrease in cash and cash equivalents               (10,648)        (11,624)
    Cash and cash equivalents at beginning of period         87,779          57,272

    Cash and cash equivalents at end of period             $ 77,131        $ 45,648

    Supplemental Information
    Total interest paid during the period, net of amounts
    capitalized                                             $ 5,527         $ 6,329

    Total tax paid during the period                           $ 77            $ 82



SOURCE Navigator Gas


Source: PR Newswire (May 8, 2017 - 4:06 PM EDT)

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