Navigator Holdings Ltd. Announces its First Quarter 2014 Results

PR Newswire

LONDON, May 6, 2014 /PRNewswire/ --

Navigator Holdings Ltd. ("Navigator") (NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today its financial and operating results for the three months ended March 31, 2014.

Highlights 

  • Navigator Holdings Ltd. (NVGS) reports revenue of $69.8 million for the first quarter ended March 31, 2014, an increase of 65% from revenue of $42.3 million for the first quarter of 2013, primarily as a result of the increase in the number of vessels in our fleet
  • Net income increased to $16.9 million for the first quarter ended March 31, 2014, compared to $7.6 million for the first quarter of 2013
  • EBITDA[1] increased to $35.9 million for the three months ended March 31, 2014 from $20.7 million for the three months ended March 31, 2013
  • Earnings per share increased to $0.31 for the three months ended March 31, 2014 from $0.18 for the three months ended March 31 2013, based on a significantly increased number of shares outstanding
  • Exercises an option to build an additional three 35,000 cubic meter ethylene/ethane capable semi-refrigerated liquefied gas carriers in April 2014
  • Thirteen newbuilding semi-refrigerated gas carriers on order, scheduled for delivery between June 2014 and December 2016

A Form 6-K is being filed with the U.S. Securities and Exchange Commission simultaneous with this release.

Tomorrow, Wednesday, May 7, 2014, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

Conference Call Details: 

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.

A telephonic replay of the conference call will be available until May 14, 2014 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#

Audio Webcast: 

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1. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is not a recognized measurement under U.S. GAAP.

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.

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 services of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders.  Navigator's fleet consists of 36 semi- or fully-refrigerated liquefied gas carriers, including thirteen newbuildings scheduled for delivery by the end of December 2016.

Forward Looking Statements 

Statements included in this press release concerning plans and objectives of Navigator's ("we,"or "our") management for future operations or economic performance, or assumptions related thereto, 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;

- 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 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 thirteen 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; and

- other factors discussed in Navigator's filings with the U.S. 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 Holding Ltd.
Consolidated Balance Sheets
(Unaudited)

December 31 March 31
2013 2014
Assets

Current assets
Cash and cash equivalents $ 194,740,045 $ 188,724,431
Accounts receivable, net 11,837,578 10,196,597
Accrued income 7,902,234 2,311,268
Prepaid expenses and other current assets 6,282,218 7,849,300
Inventories 5,924,201 6,968,604

Total current assets 226,686,276 216,050,200

Non-current assets
Long-term accounts receivables 316,559 316,559

Vessel in operation, net 1,026,226,551 1,015,502,346
Vessel under construction 60,197,486 82,543,556
Property, plant and equipment, net 363,015 344,587
Deferred Finance costs, net 11,436,165 10,745,114

Total assets $ 1,325,226,052 $ 1,325,502,362

Liabilities and stockholders' equity
Current Liabilities
Current portion of long-term debt $ 60,750,308 $ 58,275,308
Accounts payable 13,585,924 7,954,169
Accrued expenses and other liabilities 6,438,384 8,047,332
Accrued interest 4,261,971 6,730,353
Deferred income 4,803,196 5,116,260

Total current liabilities 89,839,783 86,123,422

Non-current liabilities
Secured term loan facilities, net of current portion 389,734,262 377,021,685
Senior unsecured bond 125,000,000 125,000,000

Total non-current liabilities 514,734,262 502,021,685

Commitments and contingencies

Stockholders' equity
Common stock - $.01 par value per;
400,000,000 shares authorized;
55,326,765 shares issued and outstanding,
(2013: 38,694,648) (1) 553,267 553,267
Additional paid-in capital 584,030,816 583,850,368
Accumulated other comprehensive loss (87,930) (84,676)
Retained earnings 136,155,854 153,038,296

Total stockholders' equity 720,652,007 737,357,255

Total Liabilities and stockholders' equity $ 1,325,226,052 $ 1,325,502,362
  1. All share amounts (except par value per share amounts) have been retroactively restated for 2013 to reflect the Company's 3-for-1 stock split on October 29, 2013  as described in Note 5 - Common Stock to these consolidated financial statements.


Navigator Holding Ltd.
Consolidated Statements of Income
(Unaudited)

Three months Three months
ended March 31 ended March 31
2013 2014
Revenues
Operating revenue $ 42,312,898 $ 69,825,529

Expenses
Address and brokerage commissions 1,119,922 1,484,569
Voyage expenses 7,723,446 9,886,357
Charter-in costs 1,374,718 2,100,000
Vessel Operating expenses 9,590,390 17,261,215
Depreciation and amortization 7,146,376 11,048,746
General and administrative costs 1,398,261 2,724,834
Other corporate expenses 445,321 459,065

Total operating expenses 28,798,434 44,964,786

Operating income 13,514,464 24,860,743
Other income/(expense)
Interest expense (5,796,876) (7,849,295)
Interest income 33,528 92,018

Income before income taxes 7,751,116 17,103,466
Income taxes (132,800) (221,024)

Net Income $ 7,618,316 $ 16,882,442

Earning per share:
Basic and diluted: (1) $ 0.18 $ 0.31

Weighted average number of shares outstanding:
Basic and diluted: (1) 41,611,314 55,326,765
  1. All share amounts (except par value per share amounts) have been retroactively restated for 2013 to reflect the Company's 3-for-1 stock split on October 29, 2013 as described in Note 5 - Common Stock to these consolidated financial statements.


Navigator Holding Ltd.
Consolidated Statements of Stockholders' Equity
(Unaudited)

Accumulated
Common Additional Other
Stock at 0.01 Paid-in Comprehensive Retained
Par Value (1) Capital (1) Income (Loss) Earnings Total
January 1, 2013 386,946 352,379,033 (114,507) 95,172,018 447,823,490
Insurance of common stock
net of issuance cost 165,300 230,924,215 - - 231,089,515
Restricted shares
issued March 31, 2013 600 - - - 600
Restricted shares
issued April 7, 2013 271 - - - 271
Restricted shares
issued April 11, 2013 150 - - - 150
Net income - - - 40,983,836 40,983,836
Foreign currency
translation - - 26,577 - 26,577
Share-based
compensation plan - 727,568 - 727,568
December 31, 2013 553,267 584,030,816 (87,930) 136,155,854 720,652,007
Insurance of common stock
net of issuance cost - (330,171) - - (330,171)
Net income - - - 16,882,442 16,882,442
Foreign currency
translation - - 3,254 - 3,254
Share-based
compensation plan - 149,723 - - 149,723
March 31, 2014 $ 553,267 $ 583,850,368 $ (84,676) $153,038,296 $737,357,255
  1. All share amounts (except par value per share amounts) have been retroactively restated for 2013 to reflect the Company's 3-for-1 stock split on October 29, 2013 as described in Note 5 - Common Stock to these consolidated financial statements.


Navigator Holding Ltd.
Consolidated Statements of Cash Flow
(Unaudited)

Three months Three months
ended March 31 ended March 31
2013 2014
Cash flows from operating activities
Net income $ 7,618,316 $ 16,882,442
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 7,146,376 11,048,746
Payment of drydocking costs - (3,496)
Share-based compensation 190,498 149,723
Amortization of deferred financing costs 404,925 691,051
Unrealized foreign exchange (62,214) 3,150
Changes in operating assets and liabilities
Accounts receivable (510,452) 1,640,981
Inventories (1,120,362) (1,044,403)
Accrued income and prepaid
expenses and other current assets 1,683,896 4,023,884
Accounts payable, accrued interest
and other liabilities 2,479,357 (1,241,362)

Net cash provided by operating activities 17,830,340 32,150,716

Cash flows from investing activities
Payment to acquire vessels (123,543,397) (284,895)
Payment for vessels under construction (5,216,913) (22,346,070)
Purchase of other property, plant and equipment (32,260) (17,617)

Net cash used in investing activities (128,792,570) (22,648,582)

Cash flows from financing activities
Direct financing costs of
secured term loan facilities (4,725,000) -
Repayment of secured term loan facilities (6,710,627) (15,187,577)
Issuance costs of 9% senior unsecured bond (25,179) -
Proceeds from insurance of stock 75,000,000 -
Issuance costs of stock (19,977) (330,171)

Net Cash Provided / (used) by financing activities 63,519,217 (15,517,748)

Net decrease in cash and cash equivalents (47,443,013) (6,015,614)

Cash and cash equivalents at beginning of period 140,870,317 194,740,045

Cash and cash equivalents at end of period $ 93,427,304 $ 188,724,431

Supplemental Information
Total interest paid during the period,
net of amounts capitalized $ 2,167,627 $ 4,689,863

Total tax paid during the period $ 20,649 $ 77,036

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

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