STEALTHGAS INC. REPORTS SECOND QUARTER AND SIX MONTHS 2014 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, August 28, 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 second quarter and six months ended June 30, 2014.

 

Second Quarter 2014 Results:

§ Revenues for the three months ended June 30, 2014 amounted to $31.9 million, an increase of $1.6 million, or 5.28%, compared to revenues of $30.3 million for the three months ended June 30, 2013, primarily due to the higher number of vessels in the 2014 period.

§ Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2014 were $3.5 million and $10.7 million, respectively, compared to $4.6 million and $8.7 million for the three months ended June 30, 2013. The $1.1 million decrease in voyage expenses was primarily due to the lower number of vessels under spot charters in the 2014 period. The $2.0 million increase in operating expenses was primarily the result of the increase in the number of vessels that operated in the 2014 period, including the five vessels that were added to the fleet in 2013.

§ Drydocking Costs for the three months ended June 30, 2014 were $0.1 million mainly relating to the vessel that was drydocked during the previous quarter as no more vessels were drydocked during the period, compared to three vessels that were drydocked during the same period last year at a cost of $0.9 million.

§ Depreciation for the three months ended June 30, 2014, was $8.4 million, a $0.9 million increase from $7.5 million for the same period of last year. This increase was due to the additional depreciation for seven vessels joining the fleet from the second quarter of last year until the second quarter of 2014.

§ Income from operations for the three months ended June 30, 2014 was $7.1 million compared to $6.9 million for the same period last year, an increase of $0.2 million or 2.9%.

§ Interest and finance costs for the three months ended June 30, 2014 were $2.6 million compared to $2.0 million for the same period last year. The increase in interest and finance costs was due to a combination of an increase in commitment costs and higher outstanding loan balances due to the additional financing to partly fund the vessels that joined our fleet.

§ As a result of the above, the Company had net income for the three months ended June 30, 2014 of $4.7 million, compared to net income of $5.1 million for the three months ended June 30, 2013. The average number of shares outstanding as of June 30, 2014 increased to 38.2 million compared to 28.3 million for the same period of last year, due to the offering of 7.9 million shares in February and May of 2014. Earnings per share for the three months ended June 30, 2014 amounted to $0.12 compared to $0.18 for the same period of last year.

§ Included in the second quarter 2014 results are net losses from interest rate derivative instruments of $0.07 million. Interest paid on interest rate swap arrangements amounted to $0.41 million, or $0.01 per share and gains from change in fair value of the same arrangements amounted to $0.34 million. Adjusted net income was $4.4 million or $0.12 per share for the three months ended June 30, 2014 compared to $4.4 million or $0.16 per share for the same period last year.

§ EBITDA for the three months ended June 30, 2014 amounted to $15.8 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 43.3 vessels was owned by the Company during the three months ended June 30, 2014, compared to 38.1 vessels for the same period of 2013. As of today, charter coverage for the fleet is 72% through to the end of 2014 and 52% for 2015.

§ As of June 30, 2014, cash and cash equivalents amounted to $133.7 million and total debt to $367.0 million. During the six months ended June 30, 2014 debt repayments amounted to $20.7 million.

Six Months 2014 Results:

§ Revenues for the six months ended June 30, 2014, amounted to $65.8 million, an increase of $6.1 million, or 10.22%, compared to revenues of $59.7 million for the six months ended June 30, 2013, primarily due to the higher number of vessels in our fleet in the 2014 period.

§ Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2014 were $6.6 million and $21.3 million, respectively, compared to $8.1 million and $16.7 million for the six months ended June 30, 2013. The $3.1 million increase in voyage and operating expenses was primarily due to the higher number of vessels that operated in the 2014 period and on the portion of the fleet operating now in Latin America, where crew and other operating costs are higher.

§ Drydocking Costs for the six months ended June 30, 2014 were $0.5 million as one of our vessels was drydocked during the period, compared to four vessels that were drydocked during the same period last year at a cost of $1.4 million.

§ Depreciation for the six months ended June 30, 2014, was $16.4 million, a $1.6 million increase from $14.8 million for the same period of last year. This increase was due to the higher number of vessels in our fleet in the 2014 period.

§ Income from operations for the six months ended June 30, 2014 was $16.8 million compared to $15.3 million for the same period last year, an increase of $1.5 million or 9.8%.

§ Interest and finance costs for the six months ended June 30, 2014 were $4.6 million compared to $4.1 million for the same period last year. The increase in interest and finance costs was due to a combination of an increase in commitment costs and larger outstanding loan balances.

§ As a result of the above, the Company had net income for the six months ended June 30, 2014 of $12.3 million, compared to net income of $11.5 million for the six months ended June 30, 2013. The average number of shares outstanding as of June 30, 2014 increased to 36.0 million compared to 24.4 million for the same period of last year, due to the offerings of a total of 7.9 million shares in February and May of 2014. Earnings per share for the six months ended June 30, 2014 amounted to $0.34 compared to $0.47 for the same period of last year.

§ Included in the first six months of 2014 results are net gains from interest rate derivative instruments of $0.14 million. Interest paid on interest rate swap arrangements amounted to $1.01 million, or $0.03 per share and gains from change in fair value of the same arrangements amounted to $0.87 million. Adjusted net income was $11.6 million or $0.32 per share for the six months ended June 30, 2014 compared to $9.8 million or $0.40 per share for the same period last year.

§ EBITDA for the six months ended June 30, 2014 amounted to $34.1 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 42.7 vessels were owned by the Company during the six months ended June 30, 2014, compared to 37.6 vessels for the same period of 2013.

CEO Harry Vafias commented

As always second and third quarters prove to be challenging ones due to mainly seasonality but also terminals maintenance. In addition we had a couple of vessels finishing long charters in ‘exotic’ locations and had to be repositioned to find new business. However, we were successful in securing long term charters for three more of our new building vessels, extending to 2022. There is a healthy demand for modern vessels, while overall the market remains stable. The market for older ships operating in the spot market was weaker and as compared to the previous quarter, we had more vessels in the spot market -hence the increase in voyage expenses - seven of our older vessels underperformed while the remaining vessels operated successfully. Although we are continuing with our short term strategy to reduce the number of vessels available in the spot market we are waiting to conclude more period charters in the winter months as the market is firmer and more charterers will be looking to take in ships on period charters. In addition please remember there are approximately 10 million shares more outstanding than the same quarter last year!

In this opportune time, our goal is to modernize and expand the fleet through the optimal use of the proceeds from our recent equity offerings. My family and I have shown our alignment with shareholders interests by participating on the last two private placements! It will take a few quarters to see the effects of our fleet growth, but we have already made significant commitments to increase our fleet from 44 vessels to 61 vessels at a cost of nearly $400 million, most of which will be delivered by Q3 2015. We have committed to expand our fleet by an additional 17 eco newbuilding LPG vessels ordered mainly from Japanese yards and we are making progress in the negotiations with these yards. We expect to announce the plan of action in the near future that will put into good use the proceeds from the latest equity raise. We are in advanced discussions with banks for financing all of these acquisitions with most of them already being committed. Last but not least there is no more need for equity raises since we hold a significant amount of cash and our debt to capital ratio has fallen below 30 percent! We will now focus on taking delivery of all our newbuildings, milking our existing vessels, and taking advantage of the positive demand and supply fundamentals in the LPG space.

Conference Call details:

On August 28, 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: 1877 280 3488 (US Toll Free Dial In) or : 0800 279 4843 (UK Toll Free Dial In) Access Code: 8709305.

In case of any problems with the above numbers, please dial +1646 254 3373 (US Toll Dial In), or: +44(0)20 3427 1932 (Standard International Dial In). Access Code: 8709305.

A telephonic replay of the conference call will be available until September 3rd, 2014 by dialing +1 347 366 9565 (US Local Dial In), +44 (0)20 3427 0598 (UK Local Dial In). Access Code: 8709305

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.

Headquartered in Athens, Greece, 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 40 LPG carriers with a total capacity of 196,758 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 ranging from 2014 to 2017. Giving effect to the delivery of these acquisitions, StealthGas Inc.’s fleet will be composed of 57 LPG carriers with a total capacity of 315,158 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

Financial 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 second quarters ended June 30, 2013 and June 30, 2014.

FLEET DATA

Q2 2013

Q2 2014

6M 2013

6M 2014

Average number of vessels (1)

38.1

43.3

37.6

42.7

Period end number of vessels in fleet

40

44

40

44

Total calendar days for fleet (2)

3,470

3,940

6,800

7,724

Total voyage days for fleet (3)

3,404

3,902

6,711

7,652

Fleet utilization (4)

98.1%

99.0%

98.7%

99.1%

Total charter days for fleet (5)

2,717

3,354

5,506

6,771

Total spot market days for fleet (6)

687

548

1,205

881

Fleet operational utilization (7)

91.7%

92.3%

93.8%

95.2%

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:

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before (gain)/loss on sale of assets, impairment loss, loss on derivatives, excluding swap interest paid, and non-cash foreign exchange difference. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS 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 liquidity position 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)

Second Quarter Ended June 30,

Six Months Period Ended June 30,


2013

2014

2013

2014

Net Income - Adjusted Net Income





Net income

5,079,926

4,670,438

11,538,583

12,302,516

(Gain) / Loss on derivatives

(190,515)

73,100

(218,600)

142,605

Less swap interest paid

(529,644)

(406,947)

(1,711,400)

(1,013,953)

Unrealized exchange loss/(gain)

8,913

(47)

8,028

(1,136)

Share based compensation

72,957

72,957

145,112

145,112

Adjusted Net Income

4,441,637

4,409,501

9,761,723

11,575,144






Net income - EBITDA





Net income

5,079,926

4,670,438

11,538,583

12,302,516

Plus interest and finance costs incl. swap interest paid

2,561,989

2,975,910

5,764,786

5,648,,777

Less interest income

(60,625)

(177,710)

(120,607)

(252,407)

Plus depreciation

7,488,612

8,358,525

14,822,833

16,449,200

EBITDA

15,069,902

15,827,163

32,005,595

34,148,086






Adjusted Net income -Adjusted EBITDA





Adjusted Net Income

4,441,637

4,409,501

9,761,723

11,575,144

Plus interest and finance costs incl. swap interest paid

2,561,989

2,975,910

5,764,786

5,648,,777

Less interest income

(60,625)

(177,710)

(120,607)

(252,407)

Plus depreciation

7,488,612

8,358,525

14,822,833

16,449,200

Adjusted EBITDA

14,431,613

15,566,226

30,228,735

33,420,714






EPS - Adjusted EPS





Net income

5,079,926

4,670,438

11,538,583

12,302,516

Adjusted net income

4,441,637

4,409,501

9,761,723

11,575,144

Weighted average number of shares

28,261,359

38,156,519

24,428,259

35,966,350

EPS - Basic and Diluted

0.18

0.12

0.47

0.34

Adjusted EPS

0.16

0.12

0.40

0.32

StealthGas Inc.

Unaudited Consolidated Statements of Income

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






Quarters Ended June 30,


Six Month Periods Ended June 30,






2013


2014


2013


2014










Revenues












Revenues



27,822,088


29,423,683


54,835,799


60,874,399


Revenues - related party


2,441,791


2,441,791


4,875,541


4,875,541

Total revenues



30,263,879


31,865,474


59,711,340


65,749,940













Expenses












Voyage expenses



4,243,866


3,065,756


7,349,225


5,766,480


Voyage expenses - related party


373,628


392,122


739,087


805,847


Vessels' operating expenses


7,634,160


9,615,557


14,621,229


19,313,121


Vessels' operating expenses - related party

1,065,421


1,036,684


2,040,760


2,016,454


Drydocking costs



874,490


102,665


1,370,216


465,681


Management fees - related party


1,152,195


1,323,715


2,230,395


2,600,415


General and administrative expenses


559,806


828,303


1,241,401


1,493,420


Depreciation



7,488,612


8,358,525


14,822,833


16,449,200

Total expenses



23,392,178


24,723,327


44,415,146


48,910,618













Income from operations


6,871,701


7,142,147


15,296,194


16,839,322













Other (expenses)/income










Interest and finance costs


(2,032,345)


(2,568,963)


(4,053,386)


(4,634,824)


Gain/(loss) on derivatives



190,515


(73,100)


218,600


(142,605)


Interest income



60,625


177,710


120,607


252,407


Foreign exchange loss


(10,570)


(7,356)


(43,432)


(11,784)

Other expenses, net



(1,791,775)


(2,471,709)


(3,757,611)


(4,536,806)













Net income



5,079,926


4,670,438


11,538,583


12,302,516













Earnings per share










- Basic




0.18


0.12


0.47


0.34

- Diluted




0.18


0.12


0.47


0.34













Weighted average number of shares








-Basic




28,261,359


38,156,519


24,428,259


35,966,350

-Diluted




28,261,359


38,156,519


24,428,259


35,966,350

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)








December 31,


June 30,








2013


2014











Assets









Current assets









Cash and cash equivalents




86,218,517


133,687,230


Receivables from related party




104,476


--


Trade and other receivables




4,726,758


3,982,047


Claims receivable





136,867


187,358


Inventories





2,461,093


3,104,683


Advances and prepayments




715,444


650,221


Restricted cash





3,521,902


2,836,782

Total current assets





97,885,057


144,448,321











Non current assets









Advances for vessels under construction and acquisitions



70,577,435


94,847,365


Vessels, net





677,022,902


711,308,939


Other receivables





582,765


58,122


Restricted cash





2,300,000


2,700,000


Deferred finance charges, net of accumulated







amortization of $2,212,091 and $2,526,584



2,616,584


3,432,766

Total non current assets




753,099,686


812,347,192

Total assets





850,984,743


956,795,513











Liabilities and Stockholders' Equity







Current liabilities









Payable to related party




5,941,043


5,983,909


Trade accounts payable




7,973,097


9,720,344


Accrued liabilities





2,880,377


3,279,783


Deferred income





4,735,350


3,152,630


Fair value of derivatives




277,212


91,157


Current portion of long-term debt




41,263,165


45,010,713

Total current liabilities





63,070,244


67,238,536











Non current liabilities









Fair value of derivatives




2,955,755


2,466,473


Other non current liabilities




758,844


2,001,262


Long-term debt





311,605,457


322,018,786

Total non current liabilities




315,320,056


326,486,521

Total liabilities





378,390,300


393,725,057











Commitments and contingencies




--


--











Stockholders' equity









Capital stock



321,273


400,020


Additional paid-in capital




385,088,821


463,379,582


Retained earnings





87,233,820


99,536,336


Accumulated other comprehensive loss



(49,471)


(245,482)

Total stockholders' equity




472,594,443


563,070,456

Total liabilities and stockholders' equity



850,984,743


956,795,513

StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)







Six Month Periods Ended June 30,







2013


2014







Cash flows from operating activities







Net income for the period



11,538,583


12,302,516










Adjustments to reconcile net income to net cash





provided by operating activities:







Depreciation




14,822,833


16,449,200


Amortization of deferred finance charges


219,624


314,493


Unrealized exchange differences



8,028


(1,136)


Share based compensation



145,112


145,112


Change in fair value of derivatives



(1,930,000)


(871,348)










Changes in operating assets and liabilities:






(Increase)/decrease in







Trade and other receivables



(3,414,297)


1,269,354


Claims receivable




(365,911)


(118,306)


Inventories




(639,455)


(643,590)


Advances and prepayments



(136,739)


65,223


Increase/(decrease) in







Balances with related parties



(3,080,456)


147,342


Trade accounts payable



3,120,696


1,747,247


Accrued liabilities




1,311,942


399,406


Other non current liabilities



140,997


1,242,418


Deferred income




(565,903)


(1,582,720)

Net cash provided by operating activities


21,175,054


30,865,211










Cash flows from investing activities







Insurance proceeds




91,484


67,815


Vessels’ acquisitions and advances for vessels under construction


(44,397,877)


(75,005,167)


Decrease in restricted cash account



687,089


285,120

Net cash used in investing activities


(43,619,304)


(74,652,232)










Cash flows from financing activities







Net proceeds from common stock issuance



109,183,623


78,224,396


Deferred finance charges



--


(1,130,675)


Customer deposits paid



(280,000)


--


Loan repayments




(18,216,522)


(20,742,816)


Proceeds from long-term debt



--


34,903,693

Net cash provided by financing activities


90,687,101


91,254,598










Effect of exchange rate changes on cash


(8,028)


1,136










Net increase in cash and cash equivalents


68,234,823


47,468,713

Cash and cash equivalents at beginning of year


42,273,000


86,218,517

Cash and cash equivalents at end of period


110,507,823


133,687,230










StealthGas Inc.
3rd Quarter 2017 Results
Image
The webcast is scheduled for:
Wednesday, November 22, 2017,
5:00 pm CEST / 11:00 am EDT