STEALTHGAS INC. REPORTS FIRST QUARTER 2014 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, May 22, 2014.  STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the first quarter ended March 31, 2014.

 

First Quarter 2014 Results:

 

§ Revenues for the three months ended March 31, 2014 amounted to $33.9 million, an increase of $4.5 million, or 15.3%, compared to revenues of $29.4 million for the three months ended March 31, 2013, primarily due to the revenues earned by the additional vessels which commenced operation later in 2013 and supported by the relative firmness in the spot market compared to the same period in 2013. This coupled with the usual seasonal strength improved the charter market and all vessels were operating at almost full capacity for the quarter.

§ Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2014 were $3.1 million and $10.7 million, respectively, compared to $3.5 million and $8.0 million for the three months ended March 31, 2013. The reduction of $0.4 million in voyage expenses was due to a 35% decrease in spot market days compared to the first quarter of 2013. The $2.7 million increase in operating expenses was primarily the result of four vessels that were added to the fleet and were operating on time charters and of increased crewing costs from our vessels operating in Latin America.

§ Drydocking Costs for the three months ended March 31, 2014 were $0.4 million compared to $0.5 million for the same period last year. During the three months ended March 31, 2014, one vessel entered and completed drydock which was also the case during the same period of 2013. The decrease in the cost was due to the different locations of the drydocking shipyards.

§ Depreciation for the three months ended March 31, 2014 was $8.1 million, a $0.8 million increase from $7.3 million for the same period of last year. This increase was due to the additional depreciation for five vessels that joined the fleet during 2013.

§ Interest and finance costs for the three months ended March 31, 2014 were $2.1 million compared to $2.0 million for the same period of last year.

§ As a result of the above, net income for the three months ended March 31, 2014 amounted to $7.6 million, compared to net income of $6.5 million for the three months ended March 31, 2013. The weighted average number of shares outstanding for the three months ended March 31, 2014 increased to 33.8 million compared to 20.6 million for the same period of last year, due to the public offering on April 30, 2013 and the offering on February 14, 2014. Earnings per share on a basic and diluted basis for the three months ended March 31, 2014 amounted to $0.23 compared to $0.31 for the same period of last year.

§ Included in the first quarter 2014 results are net losses from interest rate derivative instruments of $0.07 million. Interest paid on interest rate swap arrangements amounted to $0.6 million, or $0.02 per share, compared to $1.2 million for the same period of last year. Adjusted net income was $7.2 million or $0.21 per share for the three months ended March 31, 2014 compared to $5.3 million or $0.26 per share for the same period last year.

§ EBITDA for the three months ended March 31, 2014 amounted to $18.3 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income and Adjusted EBITDA to Adjusted Net Income are set forth below.

 

An average of 42.0 vessels were owned by the Company in the three months ended March 31, 2014, compared to 37.0 vessels for the same period of 2013. 

 

 

CEO Harry Vafias commented

 

The first quarter was another quarter of healthy profit for the Company. The freight market remained firm during the quarter. We managed to conclude a number of long term period charters for our vessels that depicts the charters sentiment and the strong fundamentals of our market. Our vessels that operate in the spot market were fully employed for this quarter.  On March 28 we took delivery of the first LPG vessel under construction, the Eco Stream which has been chartered for eight years.  

Regarding our medium term strategy on February 11 and on April 30, we have successfully concluded secondary offerings of 3,398,558 shares of common stock and of 4,476,195   shares of common stock respectively, priced at $9.71 per share for the first offering and $10.50 per share for the latter offering. The total gross proceeds from the two offerings were approximately $80.0 million. We believe that the proceeds will allow us to grow faster predominantly with new high tech newbuildings, and we are currently actively seeking projects for the optimal deployment of the capital raised. Over the next two years we have already committed to grow the fleet by at least 17 LPG vessels and have significant financial firepower for further expansion. In the medium term we aim to control more than 25% of the international 3000-7500 cbm pressurised LPG market. This is an opportune time to take advantage of the positive fundamentals in our core LPG sector, a low orderbook coupled with increasing product supplies coming out of the Middle East and the US that we believe will prove to be positive for the freight markets in the years to come. With very low leverage, earnings visibility and trading well below our Net Asset Value we believe we are the best choice for the investors to invest in the promising LPG Market.

 

Conference Call details:

On May 22, 2014 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

 

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 001877 280 1254 (US Toll Free Dial In) or 0800 279 5004(UK Toll Free Dial In) Access Code: 9653895. 


In case of any problems with the above numbers, please dial +1 646 254 3361(US Toll Dial In), or +44 (0) 20 3427 1918(Standard International Dial In). Access Code: 9653895.


A telephonic replay of the conference call will be available until May 29, 2014 by dialing +1 347 366 9565(US Local Dial In), +44 (0)20 3427 0598(UK Local Dial In). Access Code: 9653895.


Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

 

About STEALTHGAS INC.

STEALTHGAS INC. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. currently has a fleet of 39 LPG carriers with a total capacity of 189,559 cubic meters (cbm), three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). The Company has agreed to acquire 17 LPG carriers with expected deliveries by the end of 2015. Giving effect to the delivery of these acquisitions, StealthGas Inc.’s fleet will be composed of 56 LPG carriers with a total capacity of 273,959 cubic meters (cbm)STEALTHGAS INC’s shares are listed on the NASDAQ Global Select Market and trade under the symbol “GASS”.

 

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry dockings, changes in STEALTHGAS INC’s operating expenses, including bunker prices, dry-docking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

 

Fleet List and Fleet Deployment

For information on our fleet and further information:

Visit our website at www.stealthgas.com

 

Company Contact:

Stavros Papantonopoulos

Finance Manager

STEALTHGAS INC.

011-30-210-6250-001
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.


 

 

Fleet Data:

The following key indicators highlight the Company’s operating performance during the first quarters ended March 31, 2013 and March 31, 2014.

 

FLEET DATA

Q12013

Q12014

Average number of vessels (1)

37.0

42.0

Period end number of vessels in fleet

37

43

Total calendar days for fleet (2)

3,330

3,784

Total voyage days for fleet (3)

3,307

3,750

Fleet utilization (4)

99.3%

99.1%

Total charter days for fleet (5)

2,789

3,417

Total spot market days for fleet (6)

518

333

Fleet operational utilization (7)

95.9%

98.3%

 

 

1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days are the total days the vessels were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels in our fleet operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels in our fleet operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

 

 

 

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

 

Adjusted Net Income represents Net Income before (gain)/ loss on derivatives, excluding swap interest paid, share based compensation and unrealized exchange differences. EBITDA represents net income before interest and swap interest paid, income tax expense, depreciation and amortization. Adjusted EBITDA represents adjusted net income before interest and swap interest paid, income tax expense, depreciation and amortization. Adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, are not recognized measurements under U.S. GAAP. Our calculation of adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA and Adjusted Net Income, you should be aware that in the future we may incur expenses that are the same as  or similar to some of the adjustments in this presentation.

 

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide additional information on fleet operational results. We also use EBITDA to assess our performance and believe it represents useful information for investors regarding a company's ability to service and/or incur indebtedness. 

 

(Expressed in United States Dollars,
except number of shares)

 

First Quarter Ended March 31st,

 

2013

2014

Net Income - Adjusted Net Income

 

 

Net income

6,458,657

7,632,078

(Gain) / Loss on derivatives

(28,085)

69,505

Less swap interest paid

(1,181,756)

(607,006)

Unrealized exchange gain

(885)

(1,089)

Share based compensation

72,155

72,155

Adjusted Net Income

5,320,086

7,165,643

 

 

 

Net income – EBITDA

 

 

Net income

6,458,657

7,632,078

Plus interest and finance costs incl. swap interest paid

3,202,797

2,672,867

Less interest income

(59,982)

(74,697)

Plus depreciation

7,334,221

8,090,675

EBITDA

16,935,693

18,320,923

 

 

 

Adjusted Net income - Adjusted  EBITDA

 

 

Adjusted Net Income

5,320,086

7,165,643

Plus interest and finance costs incl. swap interest paid

3,202,797

2,672,867

Less interest income

(59,982)

(74,697)

Plus depreciation

7,334,221

8,090,675

Adjusted EBITDA

15,797,122

17,854,488

 

 

 

EPS - Adjusted EPS

 

 

Net income

6,458,657

7,632,078

Adjusted net income

5,320,086

7,165,643

Weighted average number of shares

20,552,568

33,751,847

EPS - Basic and Diluted

0.31

0.23

Adjusted EPS

0.26

0.21

 

  

StealthGas Inc.

Unaudited Consolidated Statements of Income

(Expressed in United States Dollars, except number of shares)

 

 

 

 

 

 

For The Three Months Ended March 31,

 

 

 

 

 

 

2013

 

2014

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Revenues

 

 

 

27,013,711

 

31,450,716

 

Revenues - related party

 

 

2,433,750

 

2,433,750

Total revenues

 

 

 

29,447,461

 

33,884,466

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Voyage expenses

 

 

 

3,105,359

 

2,700,724

 

Voyage expenses - related party

 

 

365,459

 

413,725

 

Vessels' operating expenses

 

 

6,987,069

 

9,697,564

 

Vessels' operating expenses - related party

 

975,339

 

979,770

 

Drydocking costs

 

 

 

495,726

 

363,016

 

Management fees - related party

 

 

1,078,200

 

1,276,700

 

General and administrative expenses

 

 

681,595

 

665,117

 

Depreciation

 

 

 

7,334,221

 

8,090,675

Total expenses

 

 

 

21,022,968

 

24,187,291

 

 

 

 

 

 

 

 

 

Income from operations

 

 

8,424,493

 

9,697,175

 

 

 

 

 

 

 

 

 

Other (expenses)/income

 

 

 

 

 

 

Interest and finance costs

 

 

(2,021,041)

 

(2,065,861)

 

Gain/(Loss) on derivatives

 

 

 

28,085

 

(69,505)

 

Interest income

 

 

 

59,982

 

74,697

 

Foreign exchange loss

 

 

(32,862)

 

(4,428)

Other expenses, net

 

 

 

(1,965,836)

 

(2,065,097)

 

 

 

 

 

 

 

 

 

Net income

 

 

 

6,458,657

 

7,632,078

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

- Basic and diluted

 

 

 

 

0.31

 

0.23

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

-Basic and diluted

 

 

 

 

20,552,568

 

33,751,847

 

 

 

 

 

 

 

 

 

 

 

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

 

 

 

 

 

 

December 31,

 

March 31,

 

 

 

 

 

 

2013

 

2014

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

86,218,517

 

114,110,686

 

Receivables from related party

 

 

104,476

 

  --

 

Trade and other receivables

 

 

4,726,758

 

4,101,701

 

Claims receivable

 

 

 

136,867

 

96,457

 

Inventories

 

 

 

2,461,093

 

2,358,251

 

Advances and prepayments

 

 

715,444

 

642,226

 

Restricted cash

 

 

 

3,521,902

 

4,707,363

Total current assets

 

 

 

97,885,057

 

126,016,684

 

 

 

 

 

 

 

 

 

Non current assets

 

 

 

 

 

 

 

Advances for vessels under construction and acquisitions

 

70,577,435

 

72,277,236

 

Vessels, net

 

 

 

677,022,902

 

694,287,916

 

Other receivables

 

 

 

582,765

 

268,765

 

Restricted cash

 

 

 

2,300,000

 

2,500,000

 

Deferred finance charges, net of accumulated

 

 

 

 

 

amortization of $2,212,091 and $2,380,871

 

2,616,584

 

2,447,804

Total non current assets

 

 

753,099,686

 

771,781,721

Total assets

 

 

 

850,984,743

 

897,798,405

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Payable to related party

 

 

5,941,043

 

6,173,140

 

Trade accounts payable

 

 

7,973,097

 

9,480,981

 

Accrued liabilities

 

 

 

2,880,377

 

3,375,873

 

Deferred income

 

 

 

4,735,350

 

3,603,328

 

Fair value of derivatives

 

 

277,212

 

180,692

 

Current portion of long-term debt

 

 

41,263,165

 

42,034,490

Total current liabilities

 

 

 

63,070,244

 

64,848,504

 

 

 

 

 

 

 

 

 

Non current liabilities

 

 

 

 

 

 

 

Fair value of derivatives

 

 

2,955,755

 

2,490,310

 

Other non current liabilities

 

 

758,844

 

881,066

 

Long-term debt

 

 

 

311,605,457

 

317,369,884

Total non current liabilities

 

 

315,320,056

 

320,741,260

Total liabilities

 

 

 

378,390,300

 

385,589,764

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

  --

 

  --

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

Capital stock

 

 

 

 

 

 

 

   shares issued and outstanding with a par value of $0.01 per share

 

321,273

 

355,258

 

Additional paid-in capital

 

 

385,088,821

 

417,012,492

 

Retained earnings

 

 

 

87,233,820

 

94,865,898

 

Accumulated other comprehensive loss

 

(49,471)

 

(25,007)

Total stockholders' equity

 

 

472,594,443

 

512,208,641

Total liabilities and stockholders' equity

 

850,984,743

 

897,798,405

 

 

 

 

 

 

 

 

 

 

StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

 

 

 

 

 

 

For The Three Months Ended March 31,

 

 

 

 

 

 

2013

 

2014

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net income for the period

 

 

6,458,657

 

7,632,078

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash

 

 

 

 

provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

 

7,334,221

 

8,090,675

 

Amortization of deferred finance charges

 

108,840

 

168,780

 

Unrealized exchange differences

 

 

(885)

 

(1,089)

 

Share based compensation

 

 

72,155

 

72,155

 

Change in fair value of derivatives

 

 

(1,209,841)

 

(537,501)

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

(Increase)/decrease in

 

 

 

 

 

 

Trade and other receivables

 

 

192,786

 

939,057

 

Claims receivable

 

 

 

(288,545)

 

  --

 

Inventories

 

 

 

(254,442)

 

102,842

 

Advances and prepayments

 

 

(162,123)

 

73,218

 

Increase/(decrease) in

 

 

 

 

 

 

Balances with related parties

 

 

(255,778)

 

336,573

 

Trade accounts payable

 

 

183,560

 

1,507,884

 

Accrued liabilities

 

 

 

2,183

 

495,496

 

Other non current liabilities

 

 

78,781

 

122,222

 

Deferred income

 

 

 

(1,118,775)

 

(1,132,022)

Net cash provided by operating activities

 

11,140,794

 

17,870,368

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Insurance proceeds

 

 

 

13,484

 

40,410

 

Vessels acquisitions and advances for vessels under construction

 

(107,070)

 

(27,055,490)

 

Increase in restricted cash account

 

 

(1,276,881)

 

(1,385,461)

Net cash used in investing activities

 

(1,370,467)

 

(28,400,541)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Net proceeds from common stock issuance

 

 

--

 

31,885,501

 

Customer deposits paid

 

 

(280,000)

 

--

 

Loan repayments

 

 

 

(9,351,101)

 

(10,614,248)

 

Proceeds from long-term debt

 

 

--

 

17,150,000

Net cash (used in)/provided by financing activities

 

(9,631,101)

 

38,421,253

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

885

 

1,089

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

140,111

 

27,892,169

Cash and cash equivalents at beginning of year

 

42,273,000

 

86,218,517

Cash and cash equivalents at end of period

 

42,413,111

 

114,110,686

 

 

 

 

 

StealthGas Inc.
2nd Quarter 2017 Results
Image
The webcast is scheduled for:
Thursday, August 24, 2017,
5:00 pm CEST / 11:00 am EDT