STEALTHGAS INC. Reports Third Quarter and Nine Months 2011 Financial and Operating Results

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| Source: StealthGas Inc.

ATHENS, Greece, Nov. 16, 2011 (GLOBE NEWSWIRE) -- 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 third quarter and nine months ended September 30, 2011.

Third Quarter 2011 Results:

  • Voyage revenues for the three months ended September 30, 2011, amounted to $27.5 million, an increase of $0.8 million, or 3.0%, compared to voyage revenues of $26.7 million for the three months ended September 30, 2010.
  • Voyage and vessels' operating expenses for the three months ended September 30, 2011 were $4.2 million and $8.4 million respectively, compared to $2.8 million and $10.2 million for the three months ended September 30, 2010. The increase of voyage expenses was due primarily to the increased level of fleet operational utilization during the quarter under spot voyage charters. The decrease in operating expenses was due primarily to the lower number of vessels owned during the quarter and the higher number of vessels operating under bareboat charters.
  • The net income for the three months ended September 30, 2011 was $6.2 million or $0.30 per share, an increase of $5.2 million, from net income of $1.0 million or $0.05 per share for the three months ended September 30, 2010.
  • Included in the third quarter 2011 results are net gains from interest rate and foreign exchange derivatives instruments of $1.1 million as well as gains due to exchange rate movements on foreign currency deposits of $1.5 million. The company also realized a $1.5 million cash loss on interest rate swap arrangements or $0.07 per share. Excluding these items adjusted net income was $2.1 million or $0.10 per share.
  • Adjusted EBITDA for the three months ended September 30, 2011 amounted to $11.0 million. A reconciliation of adjusted EBITDA to Net Income is set forth below.

An average of 36.3 vessels were owned by the Company in the three months ended September 30, 2011, earning an average time-charter equivalent rate of approximately $7,178 per day as compared to 37.7 vessels, earning an average time-charter equivalent rate of $7,040 per day for the same period of 2010.

Nine Months 2011 Results

  • Voyage revenues for the nine months ended September 30, 2011, amounted to $89.4 million an increase of $7.0 million, or 8.5%, from voyage revenues of $82.4 million for the nine months ended September 30, 2010.
  • Voyage expenses for the nine months ended September 30, 2011 amounted to $13.1 million, an increase of $3.5 million, or 36.5%, from $9.6 million for the nine months ended September 30, 2010. Vessels' operating expenses for the nine months ended September 30, 2011 amounted to $28.8 million, an increase of $0.2 million, or 0.7%, from operating expenses of $28.6 million for the nine months ended September 30, 2010.
  • The net income for the nine months ended September 30, 2011 was $4.1 million or $0.20 per share, a decrease of $2.6 million, from net income of $6.7 million, or $0.31 per share, for the nine months ended September 30, 2010.
  • Included in the nine months ended September 30, 2011 results are losses incurred on interest rate and foreign exchange derivatives instruments of $2.8 million as well as a loss of $5.7 million on sale of vessels. The company also realized a $4.3 million cash loss on interest rate swap arrangements or $0.21 per share. Excluding these items adjusted net income was $8.2 million or $0.39 per share.
  • Adjusted EBITDA for the nine months ended September 30, 2011 amounted to $35.0 million. A reconciliation of adjusted EBITDA to Net Income is set forth below.

An average of 37.8 vessels were owned by the Company in the nine months ended September 30, 2011, earning an average time-charter equivalent rate of approximately $7,550 per day as compared to 38.8 vessels, earning an average time-charter equivalent rate of $7,017 per day for the same period in 2010.

CEO Harry Vafias commented

This quarter, we experienced a softer spot market due to seasonal factors; summer months are typically weaker in terms of LPG trade. But the trend of the last two quarters pointing to a recovery of the LPG market has filtered down to our operating results when comparing to our performance last year. As we enter the winter season in the Northern Hemisphere, we expect to see the market strengthening.

During the quarter, we took delivery of our third 5,000 cubic meters (cbm) newbuilding LPG carrier, the Gas Myth, and with a fleet of 33 LPG carriers we continue to have a leading position in the LPG handysize segment. We now have two more 7,500 cbm vessels to add to our fleet, with scheduled deliveries in January and May 2012, in order to conclude our newbuilding program. We have secured financing for both vessels.

In terms of employment, we concluded two long term charter agreements. The first involving the newbuilding Gas Myth, that has entered into a three year time charter with a European oil company. The second involving an older vessel, the Gas Pasha, that has also entered into a three year time charter with a European gas trader. We believe that interest in long term period charters is a sign of a healthy market. As of today our vessels have secured period employment of about 55% for 2012 and 33% for 2013. We will continue to look for opportunities to enter into long term charter arrangements for our vessels.

Finally, regarding our share repurchase plan, during the third quarter, we made purchases of approximately 550,000 shares. Since the adoption of the plan in 2010, we have repurchased approximately 1.8 million shares.

Conference Call details:

On November 16, 2011 at 11:00 am EST, 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: 1866 966 9439 (US Toll Free Dial In) or 0800 694 0257 (UK Toll Free Dial In).

In case of any problems with the above numbers, please dial 1 631 510 7498 (US Toll Dial In), or +44 (0)1452 555 566 (Standard International Dial In). Please quote "27683220".

A telephonic replay of the conference call will be available until November 22, 2011 by dialing 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 5500 00 (Standard International Dial In). Access Code: 27683220#

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 33 LPG carriers with a total capacity of 153,088 cbm, three M.R. product tankers and one Aframax oil tanker. The company has also entered into agreements to acquire two new building LPG carriers with expected delivery in January and May 2012. Once these acquisitions are completed, STEALTHGAS INC 's fleet will be composed of 35 LPG carriers with a total capacity of 168,088 cbm, 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, 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.

Visit our website at www.stealthgas.com

Fleet Data:

The following key indicators highlight the Company's operating performance during the third quarters and nine months ended September 30, 2010 and September 30, 2011.

 

FLEET DATA Q3 2010 Q3 2011 9M 2010 9M 2011
Average number of vessels (1) 37.7 36.3 38.8 37.8
Period end number of vessels in fleet 38 37 38 37
Total calendar days for fleet (2) 3,471 3,335 10,579 10,312
Total voyage days for fleet (3) 3,394 3,247 10,370 10,106
Fleet utilization (4) 97.8% 97.4% 98.0% 98.0%
Total charter days for fleet (5) 2,513 2,515 7,727 7,784
Total spot market days for fleet (6) 881 732 2,643 2,322
Fleet operational utilization (7) 83.9% 88.1% 85.7% 89.5%

 

AVERAGE DAILY RESULTS Q3 2010 Q3 2011 9M 2010 9M 2011
Time Charter Equivalent – TCE (8) $7,040 $7,178 $7,017 $7,550
Vessel operating expenses (9) 2,934 2,527 2,705 2,792
Management fees 370 337 365 356
General and administrative expenses 224 194 209 191
Total operating expenses (10) 3,159 2,722 2,914 2,983

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 time charter days for fleet are the number of voyage days the vessels in our fleet operated on time 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.

8) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

9) Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

10) Total operating expenses, or TOE, is a measurement of our total expenses associated with operating our vessels. TOE is the sum of vessel operating expenses and general and administrative expenses. Daily TOE is calculated by dividing TOE by fleet calendar days for the relevant time 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, gain/(loss) on derivatives excluding swap interest paid and non-cash exchange difference. EBITDA, adjusted EBITDA and adjusted net income are not recognized measurements under US GAAP. Our calculation of EBITDA, adjusted EBITDA and adjusted net income may not be comparable to that reported by other companies in the shipping or other industries.

EBITDA, adjusted EBITDA, adjusted net income and adjusted earnings per share are included herein because they are a basis upon which we assess our financial performance, assist in comparability of our performance from period to period and provide additional information on fleet operational results. We also use EBITDA to assess our liquidity position and believe it presents useful information to investors regarding a company's ability to service and/or incur indebtedness. 

(Expressed in United States Dollars, except number of shares) Third Quarter Ended September 30, Nine Months Period Ended September 30,
  2010 2011 2010 2011
Net Income - Adjusted Net Income      
Net income  990,019  6,200,742  6,749,865  4,104,000
Loss/(gain) on derivatives  2,600,870  (1,127,369)  6,065,296  2,760,836
Less swap interest paid  (1,611,053)  (1,502,404)  (4,771,520)  (4,318,849)
(Gain)/loss on sale of vessels, net  ----   5,933  (960,696)  5,654,178
Unrealized exchange gain  (1,079,731)  (1,515,181)  (1,079,731)  (7,176)
Adjusted Net Income  900,105  2,061,721  6,003,214  8,192,989
         
EBITDA - Adjusted EBITDA      
Net income  990,019  6,200,742  6,749,865  4,104,000
Plus interest expense  2,071,003  2,111,695  5,675,628  6,270,788
Less interest income  (94,576)  (2,773)  (300,231)  (38,732)
Plus depreciation  6,736,565  6,799,341  19,717,326  20,589,001
EBITDA  9,703,011  15,109,005  31,842,588  30,925,057
         
Adjusted Net Income  900,105  2,061,721  6,003,214  8,192,989
Plus interest expense  2,071,003  2,111,695  5,675,628  6,270,788
Less interest income  (94,576)  (2,773)  (300,231)  (38,732)
Plus depreciation  6,736,565  6,799,341  19,717,326  20,589,001
ADJUSTED EBITDA  9,613,097  10,969,984  31,095,937  35,014,046
         
EPS - Adjusted EPS      
Net income  990,019  6,200,742  6,749,865  4,104,000
Adjusted net income  900,105  2,061,721  6,003,214  8,192,989
Weighted average number of shares   21,069,380  20,887,422  21,691,222  21,029,322
EPS  0.05  0.30  0.31  0.20
Adjusted EPS  0.04  0.10  0.28  0.39
 
StealthGas Inc.
Unaudited Statements of Income
(Expressed in United States Dollars, except number of shares)
  Quarters Ended September 30, Nine Month Periods Ended September 30,
  2010 2011 2010 2011
         
Revenues        
Voyage revenues 26,726,969 27,492,638 82,354,034 89,396,439
         
Expenses        
Voyage expenses  2,833,763  4,186,020  9,590,207  13,096,063
Vessels' operating expenses  10,185,578  8,428,178  28,615,797  28,791,931
Dry-docking costs  596,948  849,282  2,344,584  2,575,799
Management fees  1,284,690  1,122,475  3,857,810  3,673,865
General and administrative expenses  777,651  648,512  2,210,261  1,973,265
Depreciation  6,736,565  6,799,341  19,717,326  20,589,001
Charter termination fees  (228,000)  ----   (228,000)  ---- 
Net loss/(gain) on sale of vessels  ----   5,933  (960,696)  5,654,178
Total expenses  22,187,195  22,039,741  65,147,289  76,354,102
         
Income from operations  4,539,774  5,452,897  17,206,745  13,042,337
         
Other income and (expenses)        
Interest and finance costs  (2,071,003)  (2,111,695)  (5,675,628)  (6,270,788)
(Loss)/gain on derivatives  (2,600,870)  1,127,369  (6,065,296)  (2,760,836)
Interest income  94,576  2,773  300,231  38,732
Foreign exchange gain  1,027,542  1,729,398  983,813  54,555
Other expenses, net  (3,549,755)  747,845  (10,456,880)  (8,938,337)
         
Net income  990,019  6,200,742  6,749,865  4,104,000
         
Earnings per share         
- Basic  0.05  0.30  0.31  0.20
- Diluted  0.05  0.30  0.31  0.20
         
Weighted average number of shares         
-Basic 21,069,380 20,887,422 21,691,222 21,029,322
-Diluted 21,091,139 20,887,422 21,705,902 21,029,322
 
 
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
  December 31, 2010 September 30, 2011
     
Assets    
Current assets    
Cash and cash equivalents  29,797,095  42,440,323
Trade and other receivables  2,414,008  2,784,876
Claims receivable  396,395  322,174
Inventories  1,840,092  3,117,887
Advances and prepayments  777,126  437,144
Restricted cash  4,495,198  5,705,291
Fair value of derivatives  5,407,633  2,166,288
Total current assets  45,127,547  56,973,983
     
Non current assets    
Advances for vessels under construction  37,273,199  18,459,841
Vessels, net  603,065,011  621,708,038
Other receivables  42,572  1,118
Restricted cash  1,550,000  1,300,000
Deferred finance charges, net of accumulated amortization of $978,574 and $1,293,533  1,318,070  1,788,111
Total non current assets  643,248,852  643,257,108
Total assets  688,376,399  700,231,091
     
Liabilities and Stockholders' Equity    
Current liabilities    
Payable to related party  9,515,372  7,707,348
Trade accounts payable  4,761,389  5,513,025
Other accrued liabilities  5,433,594  5,710,649
Customer deposits  285,000  275,000
Deferred income  2,754,630  2,315,716
Other current liability  2,687,500  ---- 
Current portion of long-term debt  34,831,548  34,168,710
Total current liabilities  60,269,033  55,690,448
     
Non current liabilities    
Fair value of derivatives  11,602,213  10,670,264
Long-term debt  310,254,401  325,376,725
Total non current liabilities  321,856,614  336,046,989
Total liabilities  382,125,647  391,737,437
     
Commitments and contingencies  ----   ---- 
     
Stockholders' equity    
Capital stock   211,042  205,526
Additional paid-in capital  277,986,270  275,761,643
Retained earnings  28,508,349  32,612,349
Accumulated other comprehensive loss  (454,909)  (85,864)
Total stockholders' equity  306,250,752  308,493,654
Total liabilities and stockholders' equity  688,376,399  700,231,091
 
StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
  Nine Month Periods Ended September 30,
  2010 2011
     
Cash flows from operating activities    
Net income for the period  6,749,865  4,104,000
     
Items included in net income not affecting cash flows:    
Depreciation and amortization of deferred finance charges  20,157,600  20,903,960
Unrealized exchange gain  (1,079,731)  (7,176)
Share based compensation  137,229  4,071
Change in fair value of derivatives  1,293,776  2,678,441
(Gain)/loss on sale of vessels-net  (960,696)  5,654,178
     
Changes in operating assets and liabilities:    
(Increase)/decrease in    
Trade and other receivables  76,983  (329,414)
Claims receivable  (285,948)  (249,759)
Inventories  (385,929)  (1,277,795)
Advances and prepayments  (27,875)  339,982
Increase/(decrease) in    
Payable to related party  1,181,458  (1,808,024)
Trade accounts payable  1,008,295  751,636
Other accrued liabilities  (218,389)  277,055
Other current liability  (5,375,000)  (2,687,500)
Deferred income  (1,522,228)  (438,914)
Net cash provided by operating activities  20,749,410  27,914,741
     
Cash flows from investing activities    
Insurance proceeds  678,036  323,980
Advances paid for vessels under construction and acquisitions of vessels  (63,889,919)  (51,073,881)
Proceeds from sale of vessels, net  37,100,890  25,001,033
Decrease in restricted cash account  ----   250,000
Increase in restricted cash account  (1,697,806)  (1,210,093)
Net cash used in investing activities  (27,808,799)  (26,708,961)
     
Cash flows from financing activities    
Stock repurchase  (6,280,327)  (2,234,214)
Deferred finance charges paid  (360,000)  (785,000)
Customer deposits received  ----   275,000
Customer deposits paid  (1,328,948)  (285,000)
Loan repayments  (37,934,967)  (34,940,514)
Proceeds from long-term debt  45,000,000  49,400,000
Net cash (used in)/provided by financing activities  (904,242)  11,430,272
     
Effect of exchange rate changes on cash  1,079,731   7,176 
     
Net (decrease)/increase in cash and cash equivalents  (6,883,900)  12,643,228
Cash and cash equivalents at beginning of year  44,076,339  29,797,095
Cash and cash equivalents at end of period  37,192,439  42,440,323

Fleet Profile and Fleet Deployment:

The table below shows the Company's fleet development and deployment as of today:

LPG Carrier Fleet 

             
Vessel Vessel Size (cbm) Vessel Type Year Built Delivered To GASS Employment Status Charter Expiration (1)
CURRENT FLEET
Gas Cathar 7,517 F.P. 2001 Oct-05 Time Charter  May-12
Gas Premiership 7,200 F.P. 2001 Mar-08 Time Charter  Mar-12
Gas Haralambos 7,000 F.P. 2007 Oct-07 Time Charter   Jun -13
Gas Marathon 6,572 F.P. 1995 Nov-05 Time Charter  Jan -12
Gas Moxie 6,526 F.P. 1992 May-05 Spot  --
Gas Flawless 6,300 F.P. 2007 Feb-07 Time Charter  Jan-12
Gas Monarch 5,018 F.P. 1997 Dec-05 Spot  --
Lyne 5,014 F.P. 1996 May-06 Bareboat  May-12
Gas Emperor 5,013 F.P. 1995 Feb-05 Spot  --
Catterick 5,001 F.P. 1995 Nov-05 Time Charter  Jan-12
Sir Ivor 5,000 F.P. 2003 May-06 Bareboat  May-12
Gas Icon 5,000 F.P. 1994 Jun-07 Time Charter  Jul-12
Gas Kalogeros 5,000 F.P. 2007 Jul-07 Spot  --
Gas Defiance 5,000 F.P. 2008 July-08 Time Charter  Jan--13
Gas Shuriken 5,000 F.P. 2008 Oct-08 Time Charter  Oct-12
Gas Elixir 5,000 F.P. 2011 Feb-11 Time Charter  Dec-12
Gas Cerberus 5,000 F.P. 2011 Apr-11 Time Charter   Jul-12
Gas Myth 5,000 F.P. 2011 Sep-11 Time Charter  Nov-14
Gas Sincerity 4,123 F.P. 2000 Nov-05 Bareboat  Aug-14
Gas Spirit 4,112 F.P. 2001 Dec-05 Bareboat  Jan-16
Gas Zael 4,111 F.P. 2001 Dec-05 Bareboat  Jan-14
Gas Kaizen 4,109 S.R. 1991 Nov-04 Time Charter  Dec-11  
Gas Evoluzione 3,517 F.P. 1996 Jul-07 Time Charter  Aug -12
Gas Astrid 3,500 F.P. 2009 Apr-09 Bareboat  Apr-14
Gas Legacy 3,500 F.P. 1998 Oct-05 Time Charter  Oct-12
Gas Sikousis 3,500 F.P. 2006 Aug-07 Bareboat  May-16
Gas Exelero 3,500 F.P. 2009 June-09 Bareboat  Jun-14
Gas Arctic 3,434 S.R. 1992 Apr-05 Time Charter  Dec-11
Gas Ice 3,434 S.R. 1991 Apr-05 Spot  --
Chiltern 3,312 F.P. 1997 Jun-07 Bareboat  May-13
Gas Pasha 3,244 F.P. 1995 Jun-06 Time Charter  Jan-15 
Gas Crystal 3,211 S.R. 1990 Nov-05 Spot  --
Gas Tiny 1,320 S.R. 1991 Oct-04 Spot  --
FLEET TOTAL:
33 VESSELS
153,088
cbm
         
Additional Vessels (with expected delivery date)
Gas Husky 7,500 F.P. 2011 Jan-12    
Gas Esco 7,500 F.P. 2012 May-12    
TOTAL LPG CARRIER FLEET: 
35 VESSELS
168,088 cbm          

Tanker Fleet 

             
Vessel Vessel Size (dwt) Vessel Type Year Built Delivered To GASS Employment Status Charter Expiration(1)
Navig8 Fidelity 47,000 MR Product Tanker 2008 Jan-08 Bareboat Jan-15
Navig8 Faith 47,000
 
MR Product Tanker 2008 Feb-08 Bareboat Feb-15
 Alpine Endurance 46,000 MR
Product
Tanker
2009 Jul-09 Bareboat Jul-12
Spike 115,804 Aframax Oil Tanker 2010 Jul-10 Bareboat Jul-15
TOTAL
TANKER FLEET: 
4 VESSELS
255,804
dwt
         

-- F.P.: Fully-Pressurized

-- S.R.: Semi-Refrigerated

-- M.R.: Medium Range

(1)    Earliest date charters could expire. 

Company Contact:
Konstantinos Sistovaris
Chief Financial Officer
STEALTHGAS INC.
011-30-210-6250-001
E-mail: