STEALTHGAS INC. REPORTS FIRST QUARTER 2017 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, May 25, 2017. 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, 2017.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

  • Operational utilization of 97.3% in Q1 2017 (91.1% in Q1 2016), best performance since the beginning of 2014.
  • Commercial off hire days reduced in Q1 2017 by 55.6% compared to the previous quarter.
  • About 70% of fleet days secured on period charters for the remainder of 2017, with a total of approximately $170 million in contracted revenues.
  • Successful delivery of our first 22,000 cbm semi ref vessel, the Eco Frost on May 22, 2017 and already employed on her first spot voyage.
  • Record revenues of $ 38.1 million, increased compared to Q1 2016 by 4.4%.
  • Close to 6% increase in our average TCE compared to the previous quarter.
  • Adjusted EBITDA of $15.4 million in Q1 2017.
  • Moderate gearing as debt to assets stands at 39% at March 31, 2017 with strong liquidity of $ 50.1 million of cash and cash equivalents

First Quarter 2017 Results:

  • Revenues for the three months ended March 31, 2017 amounted to $38.1 million, an increase of $1.6 million, or 4.4%, compared to revenues of $36.5 million for the three months ended March 31, 2016, due to increased fleet utilization and a slight increase in market rates.
  • Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2017 were $3.6 million and $14.9 million respectively, compared to $4.0 million and $14.5 million respectively, for the three months ended March 31, 2016. The $0.4 million decrease in voyage expenses is due to the lower number of vessels operating in the spot market during the first quarter of 2017 compared to the same period of last year. The 2.8% increase in operating expenses compared to the same period of 2016 was due to one of our product tankers coming off bareboat in January 2017. It is noted that product tankers operating costs are significantly higher than that of LPGs thus increasing our average operating cost.
  • Drydocking costs remained at the same levels for the first quarters of both 2016 and 2017.
  • Depreciation for the three months ended March 31, 2017, was $9.7 million, a $0.1 million increase from $9.6 million for the same period of last year. Included in the first quarter 2017 results were net losses from interest rate derivative instruments of $0.1 million. Interest paid on interest rate derivative instruments amounted to $0.1 million.
  • As a result of the above, for the three months ended March 31, 2017, the Company reported a net income of $2.0 million, compared to a net income of $0.6 million for the three months ended March 31, 2016. The weighted average number of shares for the three months ended March 31, 2017 decreased to 39.8 million compared to 40.0 million for the same period of last year. This was, mainly due to the repurchase of 0.7 million shares from January 2016 to April 2016. Earnings per share, basic and diluted, for the three months ended March 31, 2017 amounted to $0.05, compared to earnings per share, basic and diluted, of $0.02 for the same period of last year.
  • Adjusted net income was $2.0 million or $0.05 per share for the three months ended March 31, 2017 compared to adjusted net income of $0.1 million or $0.00 per share for the same period of last year.
  • EBITDA for the three months ended March 31, 2017 amounted to $15.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 53.0 vessels were owned by the Company during the three months ended March 31, 2017, compared to 52.8 vessels for the same period of 2016. 

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:

  • A six months’ charter extension for its 2001 built LPG carrier, the Gas Spirit with a national Oil company until October 2017.
  • A one month charter for its 1997 built LPG carrier, the Gas Monarch with an international LPG trader until June 2017.
  • A three months’ charter for its 1996 built LPG carrier, the Gas Evoluzione with an international trading house until August 2017.
  • A five months’ consecutive voyages charter extension for its 1995 built LPG carrier, the Gas Marathon with an international energy trader until December 2017.
  • A nine months’ consecutive voyages charter extension for its 2001 built chartered- in LPG carrier, the Gas Premiership with an international energy trader until December 2017.
  • A ten months’ consecutive voyages charter for its 1992 built LPG carrier, the Gas Moxie with an international energy trader until December 2017.

With these charters, the Company has contracted revenues of approximately $170 million. Total anticipated voyage days of our fleet are about 70% covered for the remainder of 2017 and 27% covered for 2018.

Board Chairman Michael Jolliffe Commented

Our performance during the first quarter of 2017 leaves us cautiously optimistic for the future. Our Company, taking advantage of our well chartered position and the significant reduction in idle days, managed to achieve record revenues and high operational utilization, thus improving on profitability margins.

It must be taken into consideration though, that as is customary, the first quarter is driven mostly by seasonal demand with weaker quarters anticipated to follow. Nevertheless, we believe that the low orderbook of our segment and a further stabilization in oil prices have the potential to reinforce improvements in our market fundamentals.

Our strategy for the periods to follow is to take delivery and integrate in our fleet the remaining 22,000 cbm eco semi ref new vessels, acknowledging that this segment has been facing challenges for quite some time now. But most importantly our commitment towards our Company and our investors is to continue outperforming our peers, leveraging on our solid financial and market leading position in our segment. Over the years we have proven that we do not run our business based on day- to- day stock movements. What we continue to do is focus our business on what drives value creation, which is profitable growth, minimizing risks and delivering strong returns.

Conference Call details:

On May 25, 2017 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: 00 1877 280 1254 (US Toll Free Dial In) or 0800 279 5736 (UK Toll Free Dial In).

 Access Code: 9220745. 

In case of any problems with the above numbers, please dial +1646 254 3367 (US Toll Dial In), +44(0)20 3427 1916 (Standard International Dial In).                                                         

Access Code: 9220745.                                                           

 
A telephonic replay of the conference call will be available until May 31, 2017 by dialing +1 347 366 9565 (US Local Dial In), +44 (0)20 3427 0598 (UK Local Dial In).

Access Code: 9220745.                                                           

 

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 50 LPG carriers, excluding the two chartered in vessels, with a total capacity of  268,386 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 a further three LPG carriers with expected deliveries in the period 2017-2018. Giving effect to the delivery of these acquisitions, StealthGas Inc.’s fleet will be composed of 53 owned LPG carriers with a total capacity of 334,386 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 drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking 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:

Harry Vafias

Chief Executive Officer

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, 2016 and March 31, 2017.

FLEET DATA Q1 2016 Q1 2017
Average number of vessels (1) 52.8 53.0
Period end number of owned vessels in fleet 53 53
Total calendar days for fleet (2) 4,991 4,950
Total voyage days for fleet (3) 4,938 4,893
Fleet utilization (4) 98.9% 98.8%
Total charter days for fleet (5) 3,826 4,238
Total spot market days for fleet (6) 1,112 655
Fleet operational utilization (7) 91.1% 97.3%

1) Average number of vessels is the number of owned 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 for fleet are the total days the vessels we operated 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 we operated 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 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 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/(Loss), EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before loss on derivatives excluding net swap interest paid, share based compensation, impairment loss and gain on sale of vessels. EBITDA represents net income before interest and finance costs including net swap interest paid, interest income and other income and depreciation. Adjusted EBITDA represents EBITDA before share based compensation, loss on derivatives, excluding net swap interest paid, impairment loss and gain on sale of vessels. 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/(loss), 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 believe that EBITDA 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)
Three Months Period Ended March 31st,
2016 2017
Net Income - Adjusted Net Income    
Net income 635,847 2,003,704
Loss on derivatives 218,228 127,131
Less net swap interest paid (533,855) (136,375)
Gain on sale of vessel, net (293,791) --
Share based compensation 90,726 35,902
Adjusted Net Income 117,155 2,030,362
     
Net income – EBITDA    
Net income 635,847 2,003,704
Plus interest and finance costs incl. net swap interest paid 3,889,835 3,747,868
Less interest income and other income (122,740) (77,579)
Plus depreciation 9,639,380 9,704,454
EBITDA 14,042,322 15,378,447
     
Net income - Adjusted  EBITDA    
Net income 635,847 2,003,704
Loss on derivatives 218,228 127,131
Gain on sale of vessel, net (293,791) --
Share based compensation 90,726 35,902
Plus interest and finance costs 3,355,980 3,611,493
Less interest income and other income (122,740) (77,579)
Plus depreciation 9,639,380 9,704,454
Adjusted EBITDA 13,523,630 15,405,105
     
EPS - Adjusted EPS    
Net income 635,847 2,003,704
Adjusted net income 117,155 2,030,362
Weighted average number of shares 40,035,431 39,802,885
EPS - Basic and Diluted 0.02 0.05
Adjusted EPS 0.00 0.05

StealthGas Inc.

Unaudited Consolidated Statements of Income

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

          Three Months Ended March 31,
2016 2017
         
Revenues            
  Revenues     34,024,532   37,052,341
  Revenues - related party   2,449,550   1,011,750
Total revenues 36,474,082 38,064,091
               
Expenses            
  Voyage expenses     3,516,295   3,087,714
  Voyage expenses - related party   459,729   475,133
  Charter hire expenses   1,031,374   881,937
  Vessels' operating expenses   13,521,379   14,520,106
  Vessels' operating expenses - related party 1,025,372   401,431
  Drydocking costs     677,189   691,745
  Management fees - related party   1,792,725   1,809,450
  General and administrative expenses   753,796   715,959
  Depreciation     9,639,380   9,704,454
  Net gain on sale of vessel   (293,791)     --
Other operating costs -- 150,000
Total expenses 32,123,448 32,437,929
Income from operations 4,350,634 5,626,162
               
Other (expenses)/income        
  Interest and finance costs   (3,355,980)   (3,611,493)
  Loss on derivatives     (218,228)   (127,131)
  Interest income and other income 122,740   77,579
  Foreign exchange (loss)/gain   (263,319)   38,587
Other expenses, net (3,714,787) (3,622,458)
Net income 635,847 2,003,704
               
Earnings per share          
- Basic and diluted     0.02   0.05
               
Weighted average number of shares      
- Basic and diluted     40,035,431   39,802,885

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

              December 31, March 31,
2016   2017  
Assets                  
Current assets                
  Cash and cash equivalents       64,993,923   50,142,764  
  Receivables from related party       115,599   115,599  
  Trade and other receivables       3,918,031   4,376,968  
  Inventories         2,809,123   3,082,828  
  Advances and prepayments       1,278,357   1,175,775  
  Restricted cash         3,363,012   4,636,085  
Total current assets 76,478,045 63,530,019  
Non current assets                
  Advances for vessels under construction and acquisitions     55,785,801   72,195,553  
  Vessels, net         863,699,739   853,995,287  
  Restricted cash         5,174,710   5,185,425  
  Deferred finance charges     540,414   1,019,340  
  Fair value of derivatives           263,635   351,954  
Total non current assets 925,464,299 932,747,559  
Total assets 1,001,942,344 996,277,578  

Liabilities and Stockholders' Equity

             
Current liabilities                
  Payable to related party       7,890,933   8,622,148  
  Trade accounts payable       8,728,267   9,844,078  
  Accrued and other liabilities       5,299,479   5,360,567  
  Deferred income         4,621,438   4,705,826  
  Deferred income - related party       232,774   232,774  
  Current portion of long-term debt       54,593,715   63,212,687  
Total current liabilities 81,366,606 91,978,080  

Non current liabilities

               
  Fair value of derivatives       364,823   283,192  
  Customer deposits         2,556,700   2,556,700  
  Deferred gain on sale and leaseback of vessels     385,127   337,035  
  Deferred income     1,910     --  
  Long-term debt     343,291,874 324,946,955  
Total non current liabilities 346,600,434 328,123,882  
Total liabilities 427,967,040 420,101,962  
                     
Commitments and contingencies  
 
Stockholders' equity                
  Capital stock         442,850   442,850  
  Treasury stock         (22,523,528)   (22,523,528)  
  Additional paid-in capital       501,342,523   501,378,425  
  Retained earnings         94,688,024   96,691,728  
  Accumulated other comprehensive income     25,435   186,141  
Total stockholders' equity 573,975,304 576,175,616  
Total liabilities and stockholders' equity 1,001,942,344 996,277,578  
                       


StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

          Three Months Ended March 31,
2016 2017
           
Cash flows from operating activities        
  Net income for the period   635,847   2,003,704
               
Adjustments to reconcile net income to net cash      
  provided by operating activities:        
  Depreciation     9,639,380   9,704,454
  Amortization of deferred finance charges 177,283   171,634
  Amortization of deferred gain on sale and leaseback of vessels (48,626)   (48,092)
  Share based compensation   90,726   35,902
  Change in fair value of derivatives   (315,627)   (9,244)
  Gain on sale of vessel   (293,791)     --
               
Changes in operating assets and liabilities:      
  (Increase)/decrease in        
  Trade and other receivables   (189,213)   (458,937)
  Inventories     228,689   (273,705)
  Advances and prepayments   (87,384)   102,582
  Increase/(decrease) in        
  Balances with related parties   1,511,129   731,215
  Trade accounts payable   1,901,521   1,024,608
  Accrued liabilities     (406,091)   61,088
  Deferred income     (263,204)   82,478
Net cash provided by operating activities 12,580,639 13,127,687
               
Cash flows from investing activities        
  Vessels’ acquisitions and advances for vessels under construction (24,046,111)   (16,318,551)
  Proceeds from sale of vessels, net   1,114,399   --
Net cash used in investing activities (22,931,712) (16,318,551)
               
Cash flows from financing activities        
  Stock repurchase     (1,961,319)   --
  Deferred finance charges   --   (478,926)
  Loan repayments     (18,037,884)   (9,897,581)
  Proceeds from long-term debt   15,600,000   --
Net cash used in by financing activities (4,399,203) (10,376,507)
               
Net decrease in cash, cash equivalents and restricted cash (14,750,276)   (13,567,371)
Cash, cash equivalents and restricted cash at beginning of year 118,665,600   73,531,645
Cash, cash equivalents and restricted cash at end of period 103,915,324 59,964,274
Cash breakdown
Cash and cash equivalents 83,911,419 50,142,764
Restricted cash, current 14,834,626 4,636,085
Restricted cash, non-current 5,169,279 5,185,425
Total cash, cash equivalents and restricted cash in the statements of cash flows 103,915,324 59,964,274

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