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Navigator Holdings Ltd. Preliminary Results For the Three Months Ended March 31, 2018

LONDON, May 9, 2018 /PRNewswire/ -- Highlights

  • Navigator Holdings Ltd. (the "Company") (NVGS) reported net income of $0.7 million and earnings per share of $0.01 for the three months ended March 31, 2018. 
  • EBITDA(1) was $30.5 million for the three months ended March 31, 2018.
  • Maintained strong fleet utilization of 91.7% for the three months ended March 31, 2018.
  • During the first quarter of 2018, the Company took an additional vessel into in-house technical management taking the total number of in-house managed vessels to ten.
  • During the three months ended March 31, 2018, the Company made an initial capital contribution of $10.0 million in connection with the execution of definitive agreements relating to a 50/50 joint venture with Enterprise Products Partners L.P. to build a new ethylene marine export terminal along the U.S. Gulf Coast. The terminal will have the capacity to export approximately one million tons of ethylene per year and is expected to commence operation in the fourth quarter of 2019.

1 EBITDA is a non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating the operating performance of the Company. EBITDA does not represent and should not be considered as an alternative to any financial measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation of EBITDA to net income, our most directly comparable financial measure calculated accordance with U.S. GAAP.

Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation of net income to EBITDA for the three months ended March 31, 2018:

 


$'000's

Net income

$    696

Interest expense

10,524

Interest income

(152)

Income taxes

82

Depreciation and amortization

19,381

EBITDA

$ 30,531

 

A Form 6-K with more detailed information on our first quarter 2018 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended March 31, 2018.

Conference Call Details:

Tomorrow, Thursday, May 10, 2018, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

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.

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

A telephonic replay of the conference call will be available until Thursday, May 17, 2018 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#

Navigator Gas 
Attention: Investor Relations Department
New York:      650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London:          10 Bressenden Place, London, SW1E 5DH.   Tel: +44 (0)20 7340 4850

About Us

Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. We play a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable.         

FORWARD LOOKING STATEMENTS

Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, 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;
  • fluctuations in currencies and interest rates;
  • 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 refinance our indebtedness as it matures or 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 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;
  • our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management;
  • our ability to meet our expectations regarding the construction and financing of our proposed Export Terminal Joint Venture and our expectations regarding the financial success of such terminal.
  • other factors detailed from time to time in other periodic reports we file with the 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 Holdings Ltd.

Consolidated Balance Sheets

(Unaudited)











December 31,
2017

March 31,
2018


(in thousands except share data)

Assets



Current assets



Cash and cash equivalents...............................................................................................................................

$          62,109

$         50,814

Accounts receivable, net...................................................................................................................................

14,889

13,173

Accrued income..................................................................................................................................................

15,791

2,935

Prepaid expenses and other current assets....................................................................................................

10,964

16,486

Bunkers and lubricant oils................................................................................................................................

8,008

7,520

Insurance recoverable.......................................................................................................................................

376

99




Total current assets............................................................................................................................................

112,137

91,027




Non-current assets



Vessels in operation, net....................................................................................................................................

1,740,139

1,722,582

Investment in equity accounted joint venture

10,494

Property, plant and equipment, net................................................................................................................

1,611

1,614




Total non-current assets....................................................................................................................................

1,741,750

1,734,690




Total assets.........................................................................................................................................................

$    1,853,887

$    1,825,717




Liabilities and stockholders' equity



Current liabilities



Current portion of secured term loan facilities, net of deferred financing costs...............................................

$          81,559

$         76,287

Accounts payable..............................................................................................................................................

8,071

7,594

Accrued expenses and other liabilities............................................................................................................

12,478

12,057

Accrued interest..................................................................................................................................................

3,500

1,840

Deferred income.................................................................................................................................................

4,824

3,903




Total current liabilities...................................................................................................................................

110,432

101,681




Non-current liabilities



Secured term loan facilities, net of current portion and deferred financing costs................................................

681,658

664,449

Senior unsecured bond, net of deferred financing costs.....................................................................................

98,584

98,698




Total non-current liabilities......................................................................................................................................

780,242

763,147




Total liabilities..................................................................................................................................................

890,674

864,828

Commitments and contingencies (see note 9)



Stockholders' equity



Common stock—$.01 par value; 400,000,000 shares authorized; 55,656,304 shares issued and 
     outstanding, (2017: 55,529,762)...............................................................................................................

555

557

Additional paid-in capital.................................................................................................................................

589,436

589,743

Accumulated other comprehensive loss........................................................................................................

(277 )

(254 )

Retained earnings...............................................................................................................................................

373,499

370,843




Total stockholders' equity................................................................................................................................

963,213

960,889




Total liabilities and stockholders' equity...................................................................................................

$    1,853,887

$    1,825,717




 

 

 

Navigator Holdings Ltd.

Consolidated Statements of Income

(Unaudited)  




Three months ended

March 31,

(in thousands except share data)


2017

 

2018

 

Revenues



Operating revenue...............................................................................................................................................

$            77,320

$            77,807







Expenses



Brokerage commissions.....................................................................................................................................

1,525

1,141

Voyage expenses.................................................................................................................................................

15,000

14,978

Vessel operating expenses.................................................................................................................................

23,905

26,710

Depreciation and amortization.........................................................................................................................

17,634

19,381

General and administrative costs.....................................................................................................................

2,752

4,232

Other corporate expenses..................................................................................................................................

623

215




Total operating expenses.................................................................................................................................

61,439

66,657




Operating income..............................................................................................................................................

15,881

11,150




Other income/(expense)



Interest expense...................................................................................................................................................

(8,927 )

(10,524 )

Write off of deferred financing costs...............................................................................................................

(653 )

Write off of call premium and redemption charges on 9% unsecured bond...........................................

(3,517 )

Interest income....................................................................................................................................................

113

152




Income before income taxes...........................................................................................................................

2,897

778

Income taxes.......................................................................................................................................................

(159 )

(82 )




Net income...........................................................................................................................................................

$              2,738

$                 696




Earnings per share:



Basic:.....................................................................................................................................................................

$                0.05

$                0.01

Diluted:..................................................................................................................................................................

$                0.05

$                0.01




Weighted average number of shares outstanding:



Basic:.....................................................................................................................................................................

55,445,661

55,546,634

Diluted:..................................................................................................................................................................

55,819,401

55,915,174




 

 

Navigator Holdings Ltd.

Consolidated Statements of Cash Flows

(Unaudited)




Three Months ended
March 31,
2017

Three Months ended
March 31,
2018


(in thousands)

(in thousands)

Cash flows from operating activities



Net income..................................................................................................................................................

$                     2,738

$                        696

Adjustments to reconcile net income to net cash provided by operating activities



Depreciation and amortization..........................................................................................................................

17,634

19,381

Credit / (Payment) of drydocking costs............................................................................................................

9

(1,524)

Adjustment to equity for the adoption of the new revenue standard

(3,352)

Call option premium on redemption of 9.00% unsecured bond........................................................................

2,500

Amortization of share-based compensation....................................................................................................

409

310

Amortization of deferred financing costs........................................................................................................

1,345

568

Unrealized foreign exchange...........................................................................................................................

17

(41)




Changes in operating assets and liabilities



Accounts receivable.......................................................................................................................................

(5,211 )

1,716

Bunkers and lubricant oils...............................................................................................................................

(346)

488

Prepaid expenses and other current assets...................................................................................................

(3,492 )

7,334

Accounts payable, accrued interest and other liabilities.................................................................................

323

(3,479)




Net cash provided by operating activities..............................................................................................

15,926

22,097




Cash flows from investing activities



Payment to acquire vessels............................................................................................................................

(636)

(193)

Investment in equity accounted joint venture..................................................................................................

(10,494)

Payment for vessels under construction........................................................................................................

(84,597 )

Purchase of other property, plant and equipment...........................................................................................

(1,160 )

(45 )

Receipt of shipyard penalty payments............................................................................................................

280

Insurance recoveries......................................................................................................................................

486

277




Net cash used in investing activities.......................................................................................................

(85,627)

(10,455)




Cash flows from financing activities



Proceeds from secured term loan facilities.....................................................................................................

106,808

Issuance of 7.75% senior unsecured bonds..................................................................................................

100,000

Repayment of 9.00% senior unsecured bonds...............................................................................................

(127,500)

Issuance costs of 7.75% senior unsecured bonds........................................................................................

(1,798)

Repayment of secured term loan facilities......................................................................................................

(19,433 )

(22,937)




Net cash provided by/(used in) financing activities.............................................................................

58,077

(22,937)




Net decrease in cash and cash equivalents..........................................................................................

(11,624)

(11,295 )

Cash and cash equivalents at beginning of period.............................................................................

57,272

62,109




Cash and cash equivalents at end of period.......................................................................................

$                   45,648

$                   50,814




Supplemental Information



Total interest paid during the period, net of amounts capitalized...................................................................

$                     6,329

$                   11,616




Total tax paid during the period......................................................................................................................

$                           82

$                             4




 

 

 

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