STEALTHGAS INC. REPORTS SECOND QUARTER AND SIX MONTHS 2020 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, August 21, 2020. 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, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

 

Second Quarter 2020 Results:

 

Six Months 2020 Results:

 

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following five chartering arrangements:  

With these charters, the Company has total contracted revenues of approximately $112 million. Total anticipated voyage days of our fleet is 71% covered for the remainder of 2020 and currently, 32% for 2021.

Including the time charters of our JV arrangements, total contracted revenues amount to $133 million.

 

Board Chairman Michael Jolliffe Commented

 

In spite of the global turmoil the COVID-19 pandemic has brought on, StealthGas exerted a very strong performance in the second quarter of 2020 - marking the best quarterly results we have seen over the last seven years. The pillars of our success were principally our strong period coverage secured ahead of the imposed lockdowns, our stable operating cost base and the lowering of our finance costs.

Our conservative strategy of striving to secure our fleet on period charters paid off in that we had concluded several period charters at competitive rates prior to the COVID-19 pandemic outbreak and hence were shielded from any market deterioration while at the same time managed to improve largely upon our profitability.

We proved that we have a strong fleet, solid financial position and efficient strategy, which instills us with confidence in this uncertain market we are facing. Our performance was also a proof against our share price levels, which we deem as an unfair reflection of StealthGas’s dynamics.

Going forward we will strategically navigate the tides of the COVID-19 pandemic, pursuing the best course of action amidst what may prove to be difficult market conditions.

 

Conference Call details:

 

On August 21, 2020 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: +1 866 280 1157 (US Toll Free Dial In) or 08006941461 (UK Toll Free Dial In).

Access Code: 4165149


In case of any problems with the above numbers, please dial +1 6467871226 (US Toll Dial In), +44 (0) 203 0095709 (Standard International Dial In).                                                         

Access Code: 4165149


A telephonic replay of the conference call will be available until August 28, 2020 by dialing +1 (866) 331-1332 (US Local Dial In), +44 (0) 3333009785 (Standard International Dial In).

Access Code: 4165149

 

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. has a fleet of 52 vessels. The fleet is comprised of 48 LPG carriers, including eight Joint Venture vessels, a 7,500 cbm newbuilding LPG carrier scheduled to be delivered in September 2020 and an 11,000 cbm newbuilding pressurized LPG carrier with expected delivery in 2021. These LPG vessels have a total capacity of 444,057 cubic meters (cbm). The Company also owns three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). 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, or impact or duration of the COVID-19 pandemic 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 impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, 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:

Fenia Sakellaris

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 periods ended June 30, 2019 and June 30, 2020.

FLEET DATA

Q2 2019

Q2 2020

6M 2019

6M 2020

Average number of vessels (1)

42.0

41.1

43.7

41.1

Period end number of owned vessels in fleet

42

42

42

42

Total calendar days for fleet (2)

4,004

3,743

8,331

7,554

Total voyage days for fleet (3)

3,994

3,732

8,316

7,520

Fleet utilization (4)

99.8%

99.7%

99.8%

99.5%

Total charter days for fleet (5)

3,226

3,329

6,985

6,797

Total spot market days for fleet (6)

768

403

1,331

723

Fleet operational utilization (7)

95.3%

97.1%

97.1%

97.5%

 

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, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net (loss)/income before loss/(gain) on derivatives excluding swap interest received/(paid), net gain on sale of vessel, gain on deconsolidation of subsidiaries, impairment loss and share based compensation. EBITDA represents net (loss)/income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents EBITDA before share based compensation, impairment loss, loss/(gain) on derivatives, net gain on sale of vessels and gain on deconsolidation of subsidiaries. Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. 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, Adjusted net income and Adjusted EPS, 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 to investors.

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

Second Quarter Ended June 30th,

Six Months Period Ended June 30th,

 

2019

2020

2019

2020

Net (Loss)/Income - Adjusted Net Income

       

Net (loss)/income

(179,256)

8,923,308

1,789,610

11,936,026

Plus loss/(gain) on derivatives

118,094

(28,385)

140,791

40,310

Less swap interest received/(paid)

29,100

(16,266)

79,952

(10,643)

Less net gain on sale of vessel

--

--

(7,473)

--

Less gain on deconsolidation of subsidiaries

--

--

(145,000)

--

Plus impairment loss

--

653,079

--

653,079

Plus share based compensation

236,849

--

471,096

--

Adjusted Net Income

204,787

9,531,736

2,328,976

12,618,772

         

Net (loss)/income – EBITDA

       

Net (loss)/income

(179,256)

8,923,308

1,789,610

11,936,026

Plus interest and finance costs

5,400,047

3,690,645

11,382,918

7,923,842

Less interest income

(144,146)

(38,528)

(448,579)

(151,488)

Plus depreciation

9,474,181

9,246,107

18,948,367

18,568,068

EBITDA

14,550,826

21,821,532

31,672,316

38,276,448

         

Net (loss)/income - Adjusted  EBITDA

       

Net (loss)/income

(179,256)

8,923,308

1,789,610

11,936,026

Plus loss/(gain) on derivatives

118,094

(28,385)

140,791

40,310

Less net gain on sale of vessel

--

--

(7,473)

--

Less gain on deconsolidation of subsidiaries

--

--

(145,000)

--

Plus impairment loss

--

653,079

--

653,079

Plus share based compensation

236,849

--

471,096

--

Plus interest and finance costs

5,400,047

3,690,645

11,382,918

7,923,842

Less interest income

(144,146)

(38,528)

(448,579)

(151,488)

Plus depreciation

9,474,181

9,246,107

18,948,367

18,568,068

Adjusted EBITDA

14,905,769

22,446,226

32,131,730

38,969,837

         

EPS - Adjusted EPS

       

Net (loss)/income

(179,256)

8,923,308

1,789,610

11,936,026

Adjusted net income

204,787

9,531,736

2,328,976

12,618,772

Weighted average number of shares

39,840,783

38,323,793

39,850,618

38,862,838

EPS - Basic and Diluted

(0.00)

0.23

0.04

0.31

Adjusted EPS

0.01

0.25

0.06

0.32

 

 

 

 

StealthGas Inc.

Unaudited Consolidated Statements of Operations

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

         

Quarters Ended June 30,

 

Six Month Periods Ended June 30,

         

2019

 

2020

 

2019

 

2020

               

 

Revenues

                   
 

Revenues

   

34,083,501

 

36,251,844

 

72,526,319

 

70,628,602

                       

Expenses

                   
 

Voyage expenses

   

3,721,160

 

1,667,365

 

7,049,679

 

4,058,634

 

Voyage expenses - related party

 

423,591

 

447,486

 

900,228

 

873,170

 

Charter hire expenses

 

1,467,505

 

(3,757)

 

3,565,054

 

318,606

 

Vessels' operating expenses

 

11,519,876

 

11,343,561

 

24,187,246

 

24,349,107

 

Vessels' operating expenses - related party

239,500

 

224,500

 

488,500

 

450,000

 

Drydocking costs

   

  --

 

232,381

 

185,624

 

401,177

 

Management fees - related party

 

1,399,195

 

1,335,070

 

2,914,680

 

2,671,080

 

General and administrative expenses

 

902,521

 

502,949

 

2,024,608

 

1,070,625

 

Depreciation

   

9,474,181

 

9,246,107

 

18,948,367

 

18,568,068

 

Impairment loss

   

  --

 

653,079

 

  --

 

653,079

 

Net gain on sale of vessel

 

  --

 

  --

 

(7,473)

 

  --

Total expenses

   

29,147,529

 

25,648,741

 

60,256,513

 

53,413,546

 

       

 

 

 

 

 

 

 

Income from operations

 

4,935,972

 

10,603,103

 

12,269,806

 

17,215,056

                       

Other (expenses)/income

               
 

Interest and finance costs

 

(5,400,047)

 

(3,690,645)

 

(11,382,918)

 

(7,923,842)

 

Gain on deconsolidation of subsidiaries

  --

 

  --

 

145,000

 

--

 

Loss/(gain) on derivatives

   

(118,094)

 

28,385

 

(140,791)

 

(40,310)

 

Interest income

144,146

 

38,528

 

448,579

 

151,488

 

Foreign exchange gain/(loss)

 

7,231

 

2,418

 

(9,557)

 

3,370

Other expenses, net

   

(5,366,764)

 

(3,621,314)

 

(10,939,687)

 

(7,809,294)

                       

Income before equity in income of investees

(430,792)

 

6,981,789

 

1,330,119

 

9,405,762

Equity income in joint ventures

 

251,536

 

1,941,519

 

459,491

 

2,530,264

Net (Loss)/Income

   

(179,256)

 

8,923,308

 

1,789,610

 

11,936,026

                       

(Loss)/Earnings per share

                 

- Basic & Diluted

     

(0.00)

 

0.23

 

0.04

 

0.31

                       

Weighted average number of shares

             

-Basic & Diluted

     

39,840,783

 

38,323,793

 

39,850,618

 

38,862,838

 

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

         

December 31,

 

June 30,

         

2019

 

2020

               

Assets

           

Current assets

         
 

Cash and cash equivalents

 

68,465,342

 

36,637,082

 

Trade and other receivables

 

4,217,101

 

2,836,752

 

Other current assets

   

118,246

 

98,177

 

Claims receivable

   

314,217

 

326,267

 

Inventories

   

2,447,703

 

2,921,908

 

Advances and prepayments

 

749,681

 

1,252,393

 

Restricted cash

   

1,589,768

 

1,286,840

 

Fair value of derivatives

     

30,381

 

--

Total current assets

   

77,932,439

 

45,359,419

               

Non current assets

         
           
 

Advances for vessels under construction and acquisitions

2,988,903

 

9,315,869

 

Operating lease right-of-use assets

 

473,132

 

44,965

 

Vessels, net

   

835,152,403

 

836,002,931

 

Other receivables

   

286,915

 

155,307

 

Restricted cash

   

12,065,222

 

13,559,697

 

Investments in joint ventures

25,250,173

 

42,997,937

 

Deferred finance charges

  --

 

403,831

 

Fair value of derivatives

     

39,744

 

  --

Total non current assets

 

876,256,492

 

902,480,537

Total assets

   

954,188,931

 

947,839,956

               

Liabilities and Stockholders' Equity

       

Current liabilities

         
 

Payable to related parties

 

7,043,121

 

1,431,444

 

Trade accounts payable

 

9,032,690

 

9,612,786

 

Accrued and other liabilities

 

6,002,079

 

4,874,382

 

Operating lease liabilities

 

473,132

 

44,965

 

Customer deposits

   

968,000

 

968,000

 

Deferred income

   

2,843,994

 

3,946,499

 

Fair value of derivatives

 

37,567

 

78,868

 

Current portion of long-term debt

 

40,735,556

 

56,189,137

Total current liabilities

   

67,136,139

 

77,146,081

               

Non current liabilities

         
 

Fair value of derivatives

 

2,618,250

 

5,978,573

 

Long-term debt

   

325,247,902

 

300,915,648

Total non current liabilities

 

327,866,152

 

306,894,221

Total liabilities

   

395,002,291

 

384,040,302

               

Commitments and contingencies

 

 

   
               

Stockholders' equity

         
 

Capital stock

445,496

 

431,836

 

Treasury stock

   

(24,361,145)

 

(25,373,380)

 

Additional paid-in capital

 

502,419,122

 

499,564,087

 

Retained earnings

   

82,942,210

 

94,878,236

 

Accumulated other comprehensive loss

(2,259,043)

 

(5,701,125)

Total stockholders' equity

 

559,186,640

 

563,799,654

Total liabilities and stockholders' equity

954,188,931

 

947,839,956

 

 

 

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

         

Six Month Periods Ended June 30,

         

2019

 

2020

           

Cash flows from operating activities

       

Net income for the period

     

1,789,610

 

11,936,026

               

Adjustments to reconcile net income to net cash

     

  provided by operating activities:

       

Depreciation

     

18,948,367

 

18,568,068

Amortization of deferred finance charges

   

476,249

 

355,763

Amortization of operating lease right-of-use assets

 

775,770

 

428,167

Share based compensation

   

471,096

 

  --

Change in fair value of derivatives

   

220,743

 

29,667

Equity income in joint ventures

   

(459,491)

 

(2,530,264)

Impairment loss

     

--

 

653,079

Net gain on sale of vessel

   

(7,473)

 

  --

Gain on deconsolidation of subsidiaries

   

(145,000)

 

  --

Changes in operating assets and liabilities:

       

(Increase)/decrease in

 

         

Trade and other receivables

   

773,627

 

1,511,957

Other current assets

     

(196,634)

 

20,069

Claims receivable

     

(966,718)

 

(12,050)

Inventories

       

(54,950)

 

(474,205)

Changes in operating lease liabilities

   

(775,770)

 

(428,167)

Advances and prepayments

   

85,228

 

(502,712)

Increase/(decrease) in

 

         

Balances with related parties

   

(9,683,892)

 

(1,625,469)

Trade accounts payable

     

1,356,417

 

181,778

Accrued liabilities

     

(183,308)

 

(1,187,028)

Deferred income

     

(629,079)

 

1,102,505

Net cash provided by operating activities

 

11,794,792

 

28,027,184

               

Cash flows from investing activities

       

Insurance proceeds

 

           317,936

 

--

Proceeds from sale of interests in subsidiaries

 

20,720,975

 

--

Proceeds from sale of vessels, net

   

8,302,457

 

--

Vessels’ acquisitions and advances for vessels under construction

     

(2,908,064)

 

(26,000,323)

Investment in joint ventures

   

(1,022,000)

 

(41,998,500)

Return of investments by joint ventures

 

--

 

26,781,000

Advances to joint ventures

   

(1,268,223)

 

(29,245)

Advances from joint ventures

 

3,280,385

 

29,245

Net cash provided by/(used in) investing activities

 

27,423,466

 

(41,217,823)

               

Cash flows from financing activities

       

Stock repurchase

     

(259,500)

 

(3,880,930)

Deferred finance charges paid

   

(254,901)

 

(373,263)

Advances from joint ventures

   

--

 

1,837,299

Advances to joint ventures

   

--

 

(5,823,507)

Customer deposits paid

     

(368,000)

 

  --

Loan repayments

     

(48,960,430)

 

(20,710,673)

Proceeds from long-term debt

   

11,250,000

 

11,505,000

Net cash used in financing activities

 

(38,592,831)

 

(17,446,074)

Net increase/(decrease) in cash, cash equivalents and restricted cash

625,427

 

(30,636,713)

Cash, cash equivalents and restricted cash at beginning of year

79,430,991

 

82,120,332

Cash, cash equivalents and restricted cash at end of period

80,056,418

 

51,483,619

Cash breakdown

             

Cash and cash equivalents

   

65,836,973

 

36,637,082

Restricted cash, current

     

1,673,587

 

1,286,840

Restricted cash, non current

   

12,545,858

 

13,559,697

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

 

80,056,418

 

51,483,619