ATHENS, Greece, Nov. 26, 2012 (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, 2012.
Third Quarter 2012 Results:
- Net income for the three months ended September 30, 2012 was $6.6 million, or $0.32 per share, compared to net income of $6.2 million, or $0.30 per share, for the three months ended September 30, 2011. Lower voyage and operating costs and higher revenues resulted in net income for the three months ended September 30, 2012 being higher than the net income for the three months ended September 30, 2011. The $0.4 million increase in net income was achieved despite a $0.4 million loss on derivatives and foreign exchange for the three months ended September 30, 2012, compared to a $2.9 million gain on derivatives and foreign exchange in the same quarter last year.
- Voyage revenues for the three months ended September 30, 2012, amounted to $30.4 million, an increase of $2.9 million, or 10.5%, compared to voyage revenues of $27.5 million for the three months ended September 30, 2011, as a result of improving freight markets.
- Voyage expenses and vessels' operating expenses for the three months ended September 30, 2012 were $3.5 million and $7.7 million, respectively, compared to $4.2 million and $8.4 million for the three months ended September 30, 2011. The $0.7 million, or 16.7%, decrease in voyage expenses was primarily due to the lower number of vessels under spot charters in the 2012 period. The $0.7 million, or 8.3%, decrease in vessels' operating expenses was primarily due to the higher number of vessels operating under bareboat charters in the 2012 period.
- Included in the third quarter 2012 results are net losses from interest rate derivative instruments of $0.4 million. This amount includes $1.2 million, or $0.06 per share, of interest paid on recurring interest rate swap arrangements. Adjusted net income was $5.8 million or $0.28 per share for the three months ended September 30, 2012 compared to $2.1 million or $0.10 per share for the same period last year.
- EBITDA for the three months ended September 30, 2012 amounted to $16.4 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income are set forth below.
An average of 37.0 vessels were owned by the Company in the three months ended September 30, 2012, compared to 36.3 vessels for the same period of 2011. As of today, charter coverage for the fleet is 68% through the end of 2013 and 38% through the end of 2014.
Nine Months 2012 Results:
- Net income for the nine months ended September 30, 2012 was $21.2 million, or $1.03 per share, compared to a net income of $4.1 million, or $0.20 per share, for the nine months ended September 30, 2011.
- Voyage revenues for the nine months ended September 30, 2012, amounted to $88.6 million, a decrease of $0.8 million, or 0.9%, compared to voyage revenues of $89.4 million for the nine months ended September 30, 2011. The decrease in revenues was firstly due to the lower number of vessels in the fleet and secondly due to more of the vessels operating under bareboat charters in the 2012 period.
- Voyage expenses and vessels' operating expenses for the nine months ended September 30, 2012 were $8.8 million and $22.9 million, respectively, compared to $13.1 million and $28.8 million for the nine months ended September 30, 2011. The $4.3 million, or 32.8%, decrease in voyage expenses was due primarily to the lower number of vessels under spot charters in the 2012 period. The $5.9 million, or 20.5%, decrease in vessels' operating expenses was due primarily to the higher number of vessels operating under bareboat charters in the 2012 period.
- Included in the first nine months 2012 results are net losses from interest rate derivative instruments of $1.2 million. This amount includes $3.6 million, or $0.18 per share, of interest paid on recurring interest rate swap arrangements. The Company also realized a $1.4 million gain on sale of vessels. Adjusted net income was $17.5 million or $0.85 per share for the nine months ended September 30, 2012 compared to $8.2 million or $0.39 per share for the same period last year.
- EBITDA for the nine months ended September 30, 2012 amounted to $49.7 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income are set forth below.
An average of 36.8 vessels were owned by the Company in the nine months ended September 30, 2012, compared to 37.8 vessels for the same period of 2011.
Third quarter events:
As previously announced, the Company plans to expand its fleet with the addition of four LPG carriers being built in South Korea, which are scheduled to be delivered between January 2014 and June 2014. The Company has already arranged for bank financing related to the acquisition of these vessels at the time of their delivery. In addition to the deposits already paid and the bank financing, the Company estimates that $10-15 million will need to be invested on delivery in 2014 to conclude the acquisitions. As of September 30, 2012, the Company had $41.2 million in cash and cash equivalents.
CEO Harry Vafias commented
There were no major surprises in our results for the third quarter of 2012. We expected a considerable improvement over last year and we delivered. Our adjusted net income for the quarter increased by 180% and although in the summer there is typically a seasonal weakness we are very satisfied with the levels of activity in the chartering markets. As we enter into the winter months we expect activity to pick up. Regardless, we are confident that the fundamentals in our core segment point to further market improvements in the future, that is why we concluded the acquisition of the four eco-type newbuilding LPG carriers. It has been our strategy over the past year to expand and renew our fleet, and the addition of these vessels to our fleet will improve our operational efficiencies, our profitability and our market leadership. We continue to evaluate opportunities for further fleet growth.
Conference Call details:
On November 27, 2012 at 10:00 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: 1866 682 8490 (US Toll Free Dial In) or 0844 571 8957 (UK Toll Free Dial In).
In case of any problems with the above numbers, please dial +01 631 621 5256 (US Toll Dial In), or +44 (0)1452 555 131 (Standard International Dial In). Please quote "73594605".
A telephonic replay of the conference call will be available until December 3, 2012 by dialing 1866 247 4222 (US Toll Free Dial In), 0845 245 5202 (UK Toll Free Dial In) or +44 (0)1452 5500 00 (Standard International Dial In). Access Code: 73594605#
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 161,822 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 purchased four newbuilding LPG carriers with expected delivery in 2014. Once the delivery of these acquisitions is completed, STEALTHGAS INC's fleet will be composed of 37 LPG carriers with a total capacity of 184,822 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 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, 2011 and September 30, 2012.
| FLEET DATA | Q3 2011 | Q3 2012 | 9M 2011 | 9M 2012 |
| Average number of vessels (1) | 36.3 | 37.0 | 37.8 | 36.8 |
| Period end number of vessels in fleet | 37 | 37 | 37 | 37 |
| Total calendar days for fleet (2) | 3,335 | 3,404 | 10,312 | 10,090 |
| Total voyage days for fleet (3) | 3,247 | 3,388 | 10,106 | 9,941 |
| Fleet utilization (4) | 97.4% | 99.5% | 98.0% | 98.5% |
| Total charter days for fleet (5) | 2,515 | 2,883 | 7,784 | 8,714 |
| Total spot market days for fleet (6) | 732 | 505 | 2,322 | 1,227 |
| Fleet operational utilization (7) | 88.1% | 95.7% | 89.5% | 95.3% |
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 charter days for fleet are the number of voyage days the vessels in our fleet 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 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.
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, impairment loss, loss on derivatives, excluding swap interest paid, and non-cash foreign exchange difference. 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, 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 use EBITDA to assess our liquidity position and believe it 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) | Third Quarter Ended September 30th, | Nine Months Period Ended September 30th | ||||||
| 2011 | 2012 | 2011 | 2012 | |||||
| Net Income - Adjusted Net Income | ||||||||
| Net income | 6,200,742 | 6,633,988 | 4,104,000 | 21,199,409 | ||||
| (Gain)/Loss on derivatives | (1,127,369) | 389,859 | 2,760,836 | 1,153,309 | ||||
| Less swap interest paid | (1,502,404) | (1,229,355) | (4,318,849) | (3,603,541) | ||||
| Net (gain)/loss on sale of vessels | 5,933 | -- | 5,654,178 | (1,372,409) | ||||
| Unrealized exchange (gain)/loss | (1,515,181) | (1,712) | (7,176) | 92,138 | ||||
| Adjusted Net Income | 2,061,721 | 5,792,780 | 8,192,989 | 17,468,906 | ||||
| EBITDA - Adjusted EBITDA | ||||||||
| Net income | 6,200,742 | 6,633,988 | 4,104,000 | 21,199,409 | ||||
| Plus interest and finance costs | 2,111,695 | 2,459,930 | 6,270,788 | 7,250,396 | ||||
| Less interest income | (2,773) | (63,603) | (38,732) | (169,844) | ||||
| Plus depreciation | 6,799,341 | 7,334,240 | 20,589,001 | 21,442,465 | ||||
| EBITDA | 15,109,005 | 16,364,555 | 30,925,057 | 49,722,426 | ||||
| Adjusted Net Income | 2,061,721 | 5,792,780 | 8,192,989 | 17,468,906 | ||||
| Plus interest and finance costs | 2,111,695 | 2,459,930 | 6,270,788 | 7,250,396 | ||||
| Less interest income | (2,773) | (63,603) | (38,732) | (169,844) | ||||
| Plus depreciation | 6,799,341 | 7,334,240 | 20,589,001 | 21,442,465 | ||||
| ADJUSTED EBITDA | 10,969,984 | 15,523,347 | 35,014,046 | 45,991,923 | ||||
| EPS - Adjusted EPS | ||||||||
| Net income | 6,200,742 | 6,633,988 | 4,104,000 | 21,199,409 | ||||
| Adjusted net income | 2,061,721 | 5,792,780 | 8,192,989 | 17,468,906 | ||||
| Weighted average number of shares | 20,887,422 | 20,552,568 | 21,029,322 | 20,552,568 | ||||
| EPS | 0.30 | 0.32 | 0.20 | 1.03 | ||||
| Adjusted EPS | 0.10 | 0.28 | 0.39 | 0.85 | ||||
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StealthGas Inc. Unaudited Consolidated Statements of Income (Expressed in United States Dollars, except number of shares) |
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| Quarters Ended September 30, | Nine Month Periods Ended September 30, | |||
| 2011 | 2012 | 2011 | 2012 | |
| Revenues | ||||
| Voyage revenues | 27,492,638 | 30,356,705 | 89,396,439 | 88,627,399 |
| Expenses | ||||
| Voyage expenses | 4,186,020 | 3,547,349 | 13,096,063 | 8,847,732 |
| Vessels' operating expenses | 8,428,178 | 7,699,060 | 28,791,931 | 22,857,618 |
| Dry-docking costs | 849,282 | 262,752 | 2,575,799 | 2,045,656 |
| Management fees | 1,122,475 | 1,079,182 | 3,673,865 | 3,207,885 |
| General and administrative expenses | 648,512 | 986,483 | 1,973,265 | 2,151,866 |
| Depreciation | 6,799,341 | 7,334,240 | 20,589,001 | 21,442,465 |
| Net (gain)/loss on sale of vessels | 5,933 | -- | 5,654,178 | (1,372,409) |
| Total expenses | 22,039,741 | 20,909,066 | 76,354,102 | 59,180,813 |
| Income from operations | 5,452,897 | 9,447,639 | 13,042,337 | 29,446,586 |
| Other (expenses)/income | ||||
| Interest and finance costs | (2,111,695) | (2,459,930) | (6,270,788) | (7,250,396) |
| Gain/(Loss) on derivatives | 1,127,369 | (389,859) | (2,760,836) | (1,153,309) |
| Interest income | 2,773 | 63,603 | 38,732 | 169,844 |
| Foreign exchange gain/(loss) | 1,729,398 | (27,465) | 54,555 | (13,316) |
| Other expenses, net | 747,845 | (2,813,651) | (8,938,337) | (8,247,177) |
| Net income | 6,200,742 | 6,633,988 | 4,104,000 | 21,199,409 |
| Earnings per share | ||||
| - Basic | 0.30 | 0.32 | 0.20 | 1.03 |
| - Diluted | 0.30 | 0.32 | 0.20 | 1.03 |
| Weighted average number of shares | ||||
| - Basic | 20,887,422 | 20,552,568 | 21,029,322 | 20,552,568 |
| - Diluted | 20,887,422 | 20,552,568 | 21,029,322 | 20,552,568 |
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StealthGas Inc. Unaudited Consolidated Balance Sheets (Expressed in United States Dollars) |
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| December 31, | September 30, | |
| 2011 | 2012 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 43,539,303 | 41,234,596 |
| Trade and other receivables | 1,545,658 | 2,584,300 |
| Claims receivable | 516,403 | -- |
| Inventories | 2,416,108 | 2,614,774 |
| Advances and prepayments | 628,623 | 509,286 |
| Restricted cash | 6,954,363 | 4,813,316 |
| Vessel held for sale | 921,285 | -- |
| Total current assets | 56,521,743 | 51,756,272 |
| Non current assets | ||
| Advances for vessels under construction and acquisitions | 22,347,811 | 19,200,000 |
| Vessels, net | 613,832,973 | 641,968,871 |
| Restricted cash | 1,300,000 | 1,300,000 |
| Deferred finance charges, net of accumulated amortization of $1,374,020 and $1,699,597 | 1,707,624 | 1,382,047 |
| Total non current assets | 639,188,408 | 663,850,918 |
| Total assets | 695,710,151 | 715,607,190 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | ||
| Payable to related party | 7,874,990 | 7,982,622 |
| Trade accounts payable | 6,453,807 | 6,918,475 |
| Accrued liabilities | 4,749,162 | 3,380,242 |
| Customer deposits | 275,000 | 275,000 |
| Deferred income | 2,789,186 | 2,531,866 |
| Fair value of derivatives | -- | 1,026,410 |
| Current portion of long-term debt | 33,166,887 | 35,162,544 |
| Current portion of long-term debt associated with vessel held for sale | 791,823 | -- |
| Total current liabilities | 56,100,855 | 57,277,159 |
| Non current liabilities | ||
| Fair value of derivatives | 9,401,798 | 5,913,326 |
| Long-term debt | 317,109,471 | 318,107,439 |
| Total non current liabilities | 326,511,269 | 324,020,765 |
| Total liabilities | 382,612,124 | 381,297,924 |
| Commitments and contingencies | -- | -- |
| Stockholders' equity | ||
| Capital stock | 205,526 | 205,526 |
| Additional paid-in capital | 275,761,643 | 275,761,643 |
| Retained earnings | 37,058,140 | 58,257,549 |
| Accumulated other comprehensive income | 72,718 | 84,548 |
| Total stockholders' equity | 313,098,027 | 334,309,266 |
| Total liabilities and stockholders' equity | 695,710,151 | 715,607,190 |
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StealthGas Inc. Unaudited Consolidated Statements of Cash Flows (Expressed in United States Dollars) |
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| Nine Month Periods Ended September 30, | ||
| 2011 | 2012 | |
| Cash flows from operating activities | ||
| Net income for the period | 4,104,000 | 21,199,409 |
| Items included in net income not affecting cash flows: | ||
| Depreciation | 20,589,001 | 21,442,465 |
| Amortization of deferred finance charges | 314,959 | 325,577 |
| Unrealized exchange (gain)/loss | (7,176) | 92,138 |
| Share based compensation | 4,071 | -- |
| Change in fair value of derivatives | 2,678,441 | (2,450,232) |
| Net (gain)/loss on sale of vessels | 5,654,178 | (1,372,409) |
| Changes in operating assets and liabilities: | ||
| (Increase)/decrease in | ||
| Trade and other receivables | (329,414) | (1,038,642) |
| Claims receivable | (249,759) | (275,734) |
| Inventories | (1,277,795) | (198,666) |
| Advances and prepayments | 339,982 | 119,337 |
| Increase/(decrease) in | ||
| Payable to related party | (1,808,024) | 107,632 |
| Trade accounts payable | 751,636 | 464,668 |
| Accrued liabilities | 277,055 | (1,128,920) |
| Other current liability | (2,687,500) | -- |
| Deferred income | (438,914) | (257,320) |
| Net cash provided by operating activities | 27,914,741 | 37,029,303 |
| Cash flows from investing activities | ||
| Insurance proceeds | 323,980 | 792,137 |
| Acquisitions and advances for vessel under construction | (51,073,881) | (62,513,765) |
| Proceeds from sale of vessels, net | 25,001,033 | 18,136,907 |
| Decrease in restricted cash account | 250,000 | 2,141,047 |
| Increase in restricted cash account | (1,210,093) | -- |
| Net cash used in investing activities | (26,708,961) | (41,443,674) |
| Cash flows from financing activities | ||
| Stock repurchase | (2,234,214) | -- |
| Deferred finance charges | (785,000) | -- |
| Customer deposits received | 275,000 | -- |
| Customer deposits paid | (285,000) | -- |
| Loan repayment | (34,940,514) | (41,048,198) |
| Proceeds from long-term debt | 49,400,000 | 43,250,000 |
| Net cash provided by financing activities | 11,430,272 | 2,201,802 |
| Effect of exchange rate changes on cash | 7,176 | (92,138) |
| Net increase/(decrease) in cash and cash equivalents | 12,643,228 | (2,304,707) |
| Cash and cash equivalents at beginning of year | 29,797,095 | 43,539,303 |
| Cash and cash equivalents at end of year | 42,440,323 | 41,234,596 |