November 7, 2016 - 4:06 PM EST
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Navigator Holdings Ltd. Announces Preliminary Results for the Three Months Ended September 30, 2016

LONDON, November 7, 2016 /PRNewswire/ --

Highlights 

  • Navigator Holdings Ltd. (NYSE: NVGS) (the "Company", "we" or "our") reports net income of $6.5 million for the three months ended September 30, 2016, with earnings per share of $0.12.
  • Revenue was $69.7 million for the three months ended September 30, 2016.
  • EBITDA[1] was $30.4 million for the three months ended September 30, 2016.
  • Took delivery of the first of our four midsize semi-refrigerated ethane/ethylene capable newbuilding vessels, on August 2, 2016 Navigator Aurora. This vessel will commence on a ten-year charter in December 2016.
  • On October 8, 2016 Navigator Eclipse, the second of our four midsize semi-refrigerated ethane/ethylene capable vessels, was delivered. This vessel will commence a nine-month time charter in November 2016.
  • On October 31, 2016, the Company entered into a new $220.0 million Facility Agreement to , among other things, refinance two existing facilities that mature in April 2017 and provide delivery financing of up to 70% for our newbuilding, Navigator Jorf.
  • 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 to approximately 45% in the third quarter 2016.

Throughout the third quarter of 2016, the narrow arbitrage for liquefied petroleum gas (LPG) continued to stifle any material change in freight rates or employment. Several very large gas carrier (VLGC) cargo stems nominated for exports from the U.S. Gulf were cancelled during the first part of the third quarter of 2016, due to negative returns after taking into account terminal fees and transportation costs against the landed cost at the various buying locations. U.S. inventories of LPG reached 100 million barrels during the quarter however this had little impact in increasing U.S competitiveness against other global producing areas. VLGC and Medium sized gas carrier quoted 12 months charter rates declined from $640,000 per calendar month (pcm) and $645,000 pcm respectively at the end of second quarter to $480,000 pcm / $565,000 pcm at the end of the third quarter, with the handysize semi-refrigerated quoted 12 month charter rates reducing from $625,000 pcm to $515,000 pcm over the quarter.

Due to the challenged LPG market we have continued to migrate our available fleet from transporting LPG to petrochemical trades. These trades are typically deep sea in nature which provides utilization and increasing probability of triangulation between the various petrochemical gases. Our product portfolio and customer mix have dramatically changed during the year as a direct effect of this transition, as our capabilities to participate in transporting petrochemicals have created more opportunities for us than if our vessels were only capable of transporting LPG. At the beginning of 2016, the transportation of petrochemicals accounted for less than half of our earning days for those vessels trading on the spot market, whereas in this third quarter, the percentage had increased to approximately 90%, helping us to maintain or improve utilization. Given the forward curve of hydrocarbon market pricing and the additional vessels coming to the global fleet, we expect LPG market softness to continue for the remainder of 2016 and much of 2017.

[1] EBITDA is a non-GAAP financial measure and 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 Measure 

The following table sets forth a reconciliation of net income to EBITDA for the three months ended September 30, 2016:

   
                                      $'000's
    Net income                     $    6,476
    Net interest expense                7,886
    Income taxes                          207
    Depreciation and
    amortization                       15,804

    EBITDA                         $   30,373


A Form 6-K with more detailed information on our third quarter 2016 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended September 30, 2016.

Conference Call Details: 

Tomorrow, Tuesday, November 8, 2016, 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, November 15, 2016 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#


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 five 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 2017 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 five 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

   
                                              December 31,                September 30,
                                                  2015                        2016

                                                                   (Unaudited)
    Assets                                             (in thousands except share data)

    Current assets
    Cash and cash equivalents          $                  87,779     $            49,847
    Accounts receivable, net                               9,050                  10,637
    Accrued income                                         5,647                   9,798
    Prepaid expenses and other
    current assets                                         8,754                   9,194
    Inventories                                            3,480                   6,750
    Insurance recoverable                                 10,289                   5,422
    Total current assets                                 124,999                  91,648

    Non-current assets
    Vessels in operation, net                          1,264,451               1,413,887
    Vessels under construction                           170,776                 154,025
    Property, plant and
    equipment, net                                           279                     198
    Total non-current assets                           1,435,506               1,568,110
    Total assets                       $               1,560,505     $         1,659,758

    Liabilities and
    stockholders' equity
    Current liabilities
    Current portion of
    long-term debt, net of
    deferred financing costs           $                  59,024     $           182,808
    Accounts payable                                      11,471                   5,371
    Accrued expenses and other
    liabilities                                            9,065                   9,295
    Accrued interest                                       3,117                   5,802
    Deferred income                                        6,606                   1,823
    Total current liabilities                             89,283                 205,099

    Non-current liabilities
    Secured term loan
    facilities, net of current
    portion and deferred
    financing costs                                      436,131                 381,326
    Senior unsecured bond                                125,000                 125,000
    Total non-current
    liabilities                                          561,131                 506,326
    Total liabilities                                    650,414                 711,425
    Stockholders' equity
    Common stock - $.01 par
    value;
    400,000,000 shares
    authorized; 55,437,695
    shares
    issued and outstanding,
    (2015: 55,363,467)                                       554                     554
    Additional paid-in capital                           586,451                 587,637
    Accumulated other
    comprehensive loss                                     (465)                   (401)
    Retained earnings                                    323,551                 360,543
    Total stockholders' equity                           910,091                 948,333
    Total liabilities and
    stockholders' equity               $               1,560,505     $         1,659,758


 


                                          Navigator Holdings Ltd.
                                    Consolidated Statements of Income
                                                (Unaudited)
   
                            Three months ended                   Nine months ended
                               September 30,                       September 30,
                        (in thousands except share             (in thousands except
                                   data)                            share data)
                          2015                2016               2015          2016

    Revenues
    Operating
    revenue         $    78,215      $     69,741      $    236,553         $    218,657

    Expenses
    Brokerage
    commissions           1,655             1,372             5,191                4,382
    Voyage
    expenses              9,187            11,869            27,362               28,287
    Vessel
    operating
    expenses             20,379            22,126            57,692               68,243
    Depreciation
    and
    amortization         12,949            15,804            38,860               45,655
    General and
    administrati
    ve costs              2,742             3,120             8,096                9,180
    Other
    corporate
    expenses                781               377             2,314                1,610
    Write off of
    insurance
    claim
    receivable                -               504                 -                  504
    Profit from
    sale of
    vessel                (550)                 -             (550)                    -
    Total
    operating
    expenses             47,143            55,172           138,965              157,861

    Operating
    income               31,072            14,569            97,588               60,796

    Other
    income/(expe
    nse)
    Interest
    expense             (7,124)           (7,957)          (20,920)             (23,442)
    Write off of
    deferred
    financing
    costs                     -                 -           (1,797)                    -
    Interest
    income                   59                71                89                  240

    Income
    before
    income taxes         24,007             6,683            74,960               37,594
    Income taxes          (160)             (207)             (610)                (602)

    Net income      $    23,847      $      6,476      $     74,350         $     36,992

    Earnings per
    share:
    Basic:          $      0.43      $       0.12      $       1.34         $       0.67
    Diluted:        $      0.43      $       0.12      $       1.33         $       0.66

    Weighted average
    number of shares
    outstanding:
                      55,363,46        55,437,69         55,358,83
    Basic:                    7                 5                 7           55,413,855
                      55,741,90        55,812,93         55,694,03
    Diluted:                  7                 5                 9           55,790,240


 

                                            Navigator Holdings Ltd.

                                     Consolidated Statements of Cash Flows
                                                  (Unaudited)

                                             Nine Months ended Nine Months ended
                                              September 30,        September 30,
                                                  2015                 2016
                                             (in thousands)       (in thousands)

    Cash flows from operating activities
    Net income                             $         74,350     $         36,992

    Adjustments to reconcile net income
    to net cash

    provided by operating activities
    Depreciation and amortization                    38,860               45,655
    Payment of drydocking costs                     (7,023)              (9,729)
    Insurance claim debtor                                -                  167
    Amortization of share-based
    compensation                                      1,223                1,186
    Amortization of deferred financing
    costs                                             4,083                2,233
    Unrealized foreign exchange                        (69)                   84
    Profit from sale of vessel                        (550)                    -
    Changes in operating assets and
    liabilities
    Accounts receivable                             (3,018)              (1,586)
    Inventories                                       1,044              (3,269)
    Accrued income and prepaid expenses
    and other current assets                          (935)              (5,009)
    Accounts payable, accrued interest
    and other liabilities                               672              (7,970)

    Net cash provided by operating
    activities                                      108,637               58,754

    Cash flows from investing activities
    Payment to acquire vessels                      (2,076)              (1,372)
    Payment for vessels under
    construction                                  (164,638)            (158,403)
    Purchase of other property, plant
    and equipment                                      (94)                 (42)
    Receipt of shipyard penalty payments              1,276                  417
    Insurance recoveries                                391                4,700
    Proceeds from sale of vessel                     31,958                    -
    Capitalized costs for the repairs of
    Navigator Aries                                       -              (8,732)

    Net cash used in investing
    activities                                    (133,183)            (163,432)

    Cash flows from financing activities
    Proceeds from secured term loan
    facilities                                      126,550              116,970
    Direct financing costs of secured
    term loan facilities                            (2,399)                (155)
    Repayment of secured term loan
    facilities                                     (54,771)             (50,069)

    Net cash provided by financing
    activities                                       69,380               66,746

    Net increase/(decrease) in cash and
    cash equivalents                                 44,834             (37,932)

    Cash and cash equivalents at
    beginning of period                              62,526               87,779

    Cash and cash equivalents at end of
    period                                 $        107,360     $         49,847

    Supplemental Information
    Total interest paid during the
    period, net of amounts capitalized     $         18,925     $         21,997

    Total tax paid during the period       $            491     $            454



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

SOURCE Navigator Gas


Source: PR Newswire (November 7, 2016 - 4:06 PM EST)

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