Delivered Charter
Vessel Vessel Year To Employment Expira-
Vessel Size (cbm) Type Built GASS Status tion(1)
------------------- ---------- ------ ------ ------ ------------ -------
CURRENT FLEET
Gas Cathar (2) 7,517 F.P. 2001 Oct-05 Time Charter Aug-08
Gas Marathon (3) 6,572 F.P. 1995 Nov-05 Bareboat Oct-09
Gas Chios 6,562 F.P. 1991 Oct-05 Time Charter Mar-08
Gas Amazon (4) 6,526 F.P. 1992 May-05 Time Charter Nov-08
Gas Flawless 6,300 F.P. 2007 Feb-07 Time Charter Feb-09
Gas Monarch 5,018 F.P. 1997 Dec-05 Time Charter Jun-10
Gas Nemesis 5,016 F.P. 1995 Jun-06 Time Charter May-08
Lyne (5) 5,014 F.P. 1996 May-06 Bareboat May-09
Gas Emperor 5,013 F.P. 1995 Feb-05 Time Charter Jun-08
Birgit Kosan (6) 5,012 F.P. 1995 Apr-05 Bareboat Oct-11
Catterick (7) 5,001 F.P 1995 Nov-05 Time Charter Jan-09
Sir Ivor (8) 5,000 F.P. 2003 May-06 Bareboat May-09
Gas Icon 5,000 F.P. 1994 Jun-07 Time Charter Jul-08
Gas Kalogeros 5,000 F.P. 2007 Jul-07 Time Charter May-08
Gas Sincerity 4,123 F.P. 2000 Nov-05 Time Charter Jul-08
Gas Spirit 4,112 F.P. 2001 Dec-05 Time Charter Jun-08
Gas Zael 4,111 F.P. 2001 Dec-05 Time Charter Mar-08
Gas Courchevel 4,109 S.R. 1991 Nov-04 Spot -
Gas Prophet (9) 3,556 F.P. 1996 Oct-04 Bareboat Sep-09
Gas Shanghai (10) 3,526 F.P. 1999 Dec-04 Time Charter Sep-08
Sea Bird II 3,518 F.P. 1996 May-07 Bareboat May-09
Gas Evoluzione 3,517 F.P. 1996 Jul-07 Time Charter Aug-08
Gas Czar 3,510 F.P. 1995 Feb-06 Time Charter Nov-07
Gas Legacy 3,500 F.P. 1998 Oct-05 Time Charter Apr-08
Gas Fortune (11) 3,500 F.P. 1995 Feb-06 Time Charter Dec-08
Gas Eternity (12) 3,500 F.P. 1998 Mar-06 Bareboat Apr-10
Gas Sikousis (13) 3,500 F.P. 2006 Aug-07 Time Charter May-09
Gas Artic 3,434 S.R. 1992 Apr-05 Bareboat Apr-09
Gas Ice 3,434 S.R. 1991 Apr-05 Bareboat Apr-08
Gas Renovatio 3,313 F.P. 1997 May-07 Time Charter Jan-08
Chiltern 3,312 F.P. 1997 Jun-07 Bareboat Mar-08
Batangas 3,244 F.P. 1995 Jun-06 Bareboat Jul-08
Gas Crystal 3,211 S.R. 1990 Nov-05 Time Charter Jul-08
Gas Oracle 3,014 F.P. 1990 Dec-05 Time Charter Dec-07
Gas Prodigy (14) 3,014 F.P. 1995 Oct-05 Time Charter Dec-08
Gas Tiny 1,320 S.R. 1991 Oct-04 Time Charter Jan-09
FLEET TOTAL 153,929
36 VESSELS Cbm
Additional Vessels (with expected delivery date)
Gas Premiership (15) 7,200 F.P. 2001 Feb-08 Time Charter Feb-12
Gas Haralambos (16) 7,000 F.P. Oct-07 Oct-07 Time Charter Oct-09
Gas Sophie 3,500 F.P. 1995 Oct-07 - -
FLEET TOTAL 171,629
39 VESSELS cbm
-- F.P.: Fully-Pressurized
-- S.R.: Semi-Refrigerated
(1) Earliest date charters could expire. Most charters include options to
shorten or extend their term.
(2) Gas Cathar is currently employed under a time charter with an initial
term expiring in August 2007, which has been extended to August 2008.
(3) Gas Marathon is currently employed under a bareboat charter with an
initial term expiring in October 2007. Thereafter she will be
re-employed on a bareboat charter October 2009.
(4) Gas Amazon is currently employed under a time charter with an initial
term expiring in November 2007, which has been extended to November
2008.
(5) Lyne is employed under a bareboat charter until May 2009. Thereafter,
at the charterer's option, the bareboat charter can be extended for an
additional year.
(6) Birgit Kosan is currently employed under a bareboat charter until
October 2007. Thereafter she will be re-employed on a bareboat charter
until September 2011.
(7) Catterick is currently employed under a time charter with an initial
term expiring in January 2008, which has been extended to January
2009.
(8) Sir Ivor is employed under a bareboat charter until May 2009.
Thereafter, at the charter's option, the bareboat charter can be
extended for an additional year.
(9) Gas Prophet has for the three year duration of bareboat charter been
renamed the M.T. Ming Long.
(10) Gas Shanghai is currently employed under a time charter with an
initial term expiring in September 2007, which has been extended to
September 2008.
(11) Gas Fortune is currently employed under a time charter with an initial
term expiring in December 2007, which has been extended to December
2008.
(12) Gas Eternity has for the duration of bareboat charter been renamed the
M.T. Yu Tian 9.
(13) Gas Sikousis is currently employed under a time charter until May
2009. Thereafter, at the charterer' option, the time charter can be
extended for two one-year period, the first one to be negotiated in
May 2009.
(14) Gas Prodigy is currently employed under a time charter with an initial
term expiring in December 2007, which has been extended to December
2008.
(15) Gas Premiership will commence a four year charter upon expected
delivery in February 2008 expiring in February 2012.
(16) Gas Haralambos will commence a two year charter upon expected delivery
in October 2007 expiring in October 2009.
Fleet Data:
The following key indicators highlight the Company's operating performance
during the quarters ended June 30, 2007 and June 30, 2006.
FLEET DATA Q2 2007 Q2 2006
----------- -----------
Average number of vessels (1) 29.3 25.1
Period end number of vessels in fleet 33.0 28.0
Total calendar days for fleet (2) 2,723 2,280
Total voyage days for fleet (3) 2,675 2,253
Fleet utilization (4) 98.2% 98.8%
Total time charter days for fleet (5) 2,515 1,889
Total spot market days for fleet (6) 160 364
AVERAGE DAILY RESULTS Q2 2007 Q2 2006
----------- -----------
Time Charter Equivalent - TCE (7) $ 7,075 $ 6,922
Vessel operating expenses (8) 2,037 2,074
Management fees 343 329
General and administrative expenses 323 444
Total operating expenses (9) 2,359 2,519
The following key indicators highlight the Company's operating performance
during the six months ended June 30, 2007 and June 30, 2006.
FLEET DATA 6M 2007 6M 2006
----------- -----------
Average number of vessels (1) 29.9 23.8
Period end number of vessels in fleet 33 28.0
Total calendar days for fleet (2) 5,302 4,299
Total voyage days for fleet (3) 5,254 4,268
Fleet utilization (4) 99.1% 99.3%
Total time charter days for fleet (5) 4,980 3,786
Total spot market days for fleet (6) 274 482
AVERAGE DAILY RESULTS 6M 2007 6M 2006
----------- -----------
Time Charter Equivalent - TCE (7) $ 7,308 $ 7,377
Vessel operating expenses (8) 2,044 2,109
Management fees 347 325
General and administrative expenses 320 375
Total operating expenses (9) 2,364 2,484
(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, drydocks 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) 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.
(8) 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.
(9) 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.
Adjusted EBITDA Reconciliation:
Adjusted EBITDA represents net earnings before interest, taxes, depreciation,
amortization and amortization of fair value of acquired time charters. Adjusted EBITDA does not represent and should not be considered as an
alternative to net income or cash flow from operations, as determined by
the accounting standards generally accepted in the United States of America, and
our calculation of Adjusted EBITDA may not be comparable to that reported by other companies in the shipping or other industries.
Adjusted EBITDA is included herein because it is a basis upon which we assess our financial performance and liquidity position and because we believe that it presents useful
information to investors regarding a company's ability to service and/or
incur indebtedness.
Adjusted EBITDA reconciliation for the quarters ended June 30, 2007 and June 30,
2006:
(figures in US $) Q2 2007 Q2 2006
------------ ------------
Net Cash Provided By Operating Activities $ 15,860,775 $ 7,298,018
Net increase in current assets, excluding cash (270,412) 664,722
Net (increase) in current liabilities,
excluding short-term portion of long term
debt. (6,599,852) (1,328,190)
Interest income (109,484) (165,576)
Interest and finance costs 2,477,626 1,734,096
Amortization of finance fees (17,410) (9,368)
Change in fair value of derivatives 327,521 675,496
Adjusted EBITDA $ 11,668,764 $ 8,869,198
(figures in US $) Q2 2007 Q2 2006
------------ ------------
Net Income $ 5,689,025 $ 4,621,660
Plus interest and finance costs 2,477,626 1,734,096
Less Interest income (109,484) (165,576)
Plus Depreciation 3,802,162 3,127,351
Plus Amortization of fair value of
acquired time charters (190,565) (448,333)
Adjusted EBITDA $ 11,668,764 $ 8,869,198
Adjusted EBITDA reconciliation for the six months ended June 30, 2007 and June 30,
2006:
(figures in US $) 6M 2007 6M 2006
------------ ------------
Net Cash Provided By Operating Activities $ 24,670,519 $ 16,589,761
Net increase in current assets, excluding cash (203,934) 1,189,988
Net (increase) in current liabilities,
excluding short-term portion of long term
debt. (5,244,093) (2,889,461)
Interest income (371,528) (351,636)
Interest and finance costs 4,869,835 3,091,390
Amortization of finance fees (38,257) (19,287)
Change in fair value of derivatives 301,576 1,318,456
Adjusted EBITDA $ 23,984,118 $ 19,029,081
(figures in US $) 6M 2007 6M 2006
------------ ------------
Net Income $ 12,311,479 $ 11,580,353
Plus interest and finance costs 4,869,835 3,091,390
Less Interest income (371,528) (351,636)
Plus depreciation 7,463,993 5,935,011
Plus Amortization of fair value of
acquired time charters (289,661) (1,226,037)
Adjusted EBITDA $ 23,984,118 $ 19,029,081
Conference Call and Webcast:
As previously announced, on August 14, 2007 at 11:30 A.M. EDT, the
company's management will host a conference call to discuss the results and
the company's operations and outlook.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1866 819 7111 (US Toll Free Dial In), 0800 953
0329 (UK Toll Free Dial In) or +44 (0) 1452 542 301 (Standard International
Dial In). Please quote "STEALTHGAS."
In case of any problems with the above numbers, please dial 1866 223 0615
(US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)
1452 586 513 (Standard International Dial In). Please quote "STEALTHGAS."
A telephonic replay of the conference call will be available until August
21, 2007 by dialing 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK
Toll Free Dial In) or +44 1452 550 000 (Standard International Dial In).
Access Code: 2201616#
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.
STEALTHGAS INC.
Condensed Consolidated Statements of Income
For the quarters ended June 30, 2006 and June 30, 2007
(Expressed in United States Dollars)
For the Quarter Ended
June 30, 2006 June 30, 2007
(Unaudited) (Unaudited)
-------------- --------------
Revenues
Voyage revenues $ 17,215,045 $ 19,880,050
-------------- --------------
Expenses
Voyage expenses 1,618,689 958,144
Vessels' operating expenses 4,729,458 5,545,968
Dry-docking costs 432,926 --
Management fees 750,986 932,890
General and administrative expenses 1,013,422 878,355
Depreciation 3,127,351 3,802,162
-------------- --------------
Total expenses 11,672,832 12,117,519
-------------- --------------
Income from operations $ 5,542,213 $ 7,762,531
-------------- --------------
Other income and (expense)
Interest and finance costs (1,734,096) (2,477,626)
Change in fair value of derivatives 675,496 327,521
Interest income 165,576 109,484
Foreign exchange loss (27,529) (32,885)
-------------- --------------
Other expenses, net (920,553) (2,073,506)
-------------- --------------
Net income $ 4,621,660 $ 5,689,025
-------------- --------------
Earnings per share, basic and diluted $ 0.33 $ 0.40
============== ==============
Weighted average number of shares, basic
and diluted 14,000,000 14,400,000
============== ==============
STEALTHGAS INC.
Condensed Consolidated Statements of Income
For the six months ended June 30, 2006 and June 30, 2007
(Expressed in United States Dollars)
For the Six Months Ended
June 30, 2006 June 30, 2007
(Unaudited) (Unaudited)
-------------- --------------
Revenues
Voyage revenues $ 34,152,963 $ 40,624,156
-------------- --------------
Expenses
Voyage expenses 2,666,514 2,233,592
Vessels' operating expenses 9,066,664 10,838,762
Dry-docking costs 432,926 --
Management fees 1,398,785 1,840,850
General and administrative expenses 1,610,603 1,696,030
Depreciation 5,935,011 7,463,993
-------------- --------------
Total expenses 21,110,503 24,073,227
-------------- --------------
Income from operations $ 13,042,460 $ 16,550,929
-------------- --------------
Other income and (expense)
Interest and finance costs (3,091,390) (4,869,835)
Change in fair value of derivatives 1,318,456 301,576
Interest income 351,636 371,528
Foreign exchange loss (40,809) (42,719)
-------------- --------------
Other expenses, net (1,462,107) (4,239,450)
-------------- --------------
Net income $ 11,580,353 $ 12,311,479
-------------- --------------
Earnings per share, basic and diluted $ 0.83 $ 0.85
============== ==============
Weighted average number of shares, basic
and diluted 14,000,000 14,400,000
============== ==============
STEALTHGAS INC.
Condensed Consolidated Balance Sheets
As of December 31, 2006 and June 30, 2007
(Expressed in United States Dollars)
December 31, June 30,
2006 2007
(Unaudited) (Unaudited)
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 11,146,871 $ 5,962,161
Trade receivables 1,096,645 870,071
Claim receivable 289,922 30,378
Inventories 746,874 770,951
Advances and prepayments 270,370 264,355
Fair value of above market acquired time
charter 23,718 --
Restricted cash 4,317,338 4,671,745
------------- -------------
Total current assets $ 17,891,738 $ 12,569,661
------------- -------------
Non current assets
Advances for vessels acquisitions -- 1,700,000
Advances for vessels under construction 3,483,750 2,355,000
Vessels, net 297,950,257 352,506,132
Restricted cash -- 200,000
Deferred finance charges, net of accumulated
amortization of $87,424 (as of December 31,
2006) and (as of June 30, 2007) $125,681 279,576 387,114
Fair value of derivatives 368,119 804,816
------------- -------------
Total non current assets $ 302,081,702 $ 357,953,062
------------- -------------
Total assets $ 319,973,440 $ 370,522,723
------------- -------------
Liabilities and Stockholders' Equity
Current liabilities
Payable to related party 2,198,456 8,314,298
Short-term bridge facility -- 18,000,000
Trade accounts payable 2,049,456 1,940,369
Other accrued liabilities 4,681,488 4,501,097
Customer deposits 660,000 643,500
Deferred income 2,889,998 2,307,727
Current portion of long-term debt 16,149,600 15,505,064
------------- -------------
Total current liabilities $ 28,628,998 $ 51,212,055
Non current liabilities
Fair value of derivatives 404,021 180,436
Customer deposits 1,323,272 3,307,001
Fair value of below market acquired time
charter 1,016,281 1,721,902
Long-term debt 124,798,640 143,028,916
------------- -------------
Total non current liabilities $ 127,542,214 $ 148,238,255
------------- -------------
Total liabilities $ 156,171,212 $ 199,450,310
------------- -------------
Commitments and contingencies -- --
Stockholders' equity
Capital stock
5,000,000 preferred shares authorized and
zero outstanding with par value of $0.01
per share 100,000,000 common shares
authorized 14,400,000 shares issued and
outstanding with a par value of $0.01 per
share 144,000 144,000
Additional paid-in capital 150,607,621 150,607,621
Retained earnings 12,826,845 19,738,324
Accumulated other comprehensive income 223,762 582,468
------------- -------------
Total stockholders' equity $ 163,802,228 $ 171,072,413
------------- -------------
Total liabilities and stockholders' equity $ 319,973,440 $ 370,522,723
------------- -------------
STEALTHGAS INC.
Condensed Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
For the Quarter Ended
June 30, 2006 June 30, 2007
(Unaudited) (Unaudited)
------------- -------------
Cash flows from operating activities
Net income for the period $ 11,580,353 $ 12,311,479
Items included in net income not affecting
cash flows:
Depreciation and amortization 5,954,298 7,502,250
Amortization of fair value of time charter (1,226,037) (289,661)
Net (income) of vessel acquired from the
Vafias Group (99,870) --
Change in fair value of derivatives (1,318,456) (301,576)
Changes in operating assets and liabilities:
(Increase)/Decrease in
Trade receivables (285,579) 226,574
Claim receivable (179,489) (4,578)
Inventories (694,342) (24,077)
Advances and prepayments (30,578) 6,015
Increase/(Decrease) in
Payable to related party 1,213,020 6,115,842
Trade accounts payable 972,456 (109,087)
Other accrued liabilities 765,388 (180,391)
Deferred income (61,403) (582,271)
------------- -------------
Net cash provided by operating activities $ 16,589,761 $ 24,670,519
------------- -------------
Cash flows from investing activities
Insurance proceeds -- 264,122
Advances for vessels acquisitions -- (1,700,000)
(Increase) in restricted cash account (2,084,441) (554,407)
Acquisition of vessels (78,245,786) (59,872,118)
------------- -------------
Net cash (used in) investing activities $ (80,330,227) $ (61,862,403)
------------- -------------
Cash flows from financing activities
Deemed dividends (287,500) --
Dividends paid (5,250,000) (5,400,000)
Deferred finance charges (110,000) (145,795)
Overdraft facility (200,000) --
Customer deposits -- 1,967,229
Loan repayment (47,706,000) (9,481,760)
Proceeds from short-term bridge facility 18,000,000
Proceeds from long-term debt 100,430,000 27,067,500
------------- -------------
Net cash provided by financing activities $ 46,876,500 $ 32,007,174
------------- -------------
Net (decrease) in cash and cash equivalents (16,863,966) (5,184,710)
Cash and cash equivalents at beginning of
period 23,210,243 11,146,871
------------- -------------
Cash and cash equivalents at end of period $ 6,346,277 $ 5,962,161
------------- -------------
Supplemental Cash Flow Information:
Cash paid during the period for:
Interest payments $ 2,624,695 $ 4,419,047
============= =============
Non cash items:
Fair value of below market acquired time
charter $ 1,982,000 $ 1,019,000
============= =============
About STEALTHGAS INC. Headquartered in Athens, Greece, STEALTHGAS INC. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. STEALTHGAS INC. currently has a fleet of 36 LPG carriers with a total capacity of 153,929 cubic meters (cbm). In addition, the company has agreed to acquire one re sale newbuilding LPG carrier expected to be delivered to it in October 2007. It has also entered into agreements to acquire two additional second-hand LPG carriers with expected delivery between October 2007 and February 2008. Once these acquisitions are complete, STEALTHGAS INC.'s fleet will be composed of 39 LPG carriers with a total capacity of 171,629 cubic meters (cbm). STEALTHGAS INC.'s shares are listed on NASDAQ and trade under the symbol "GASS." Forward-Looking Statement 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 charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in STEALTHGAS INC.'s operating expenses, including bunker prices, dry-docking and insurance costs, 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 US Securities and Exchange Commission. Visit our website at www.stealthgas.com
Contact Information: Company Contact: Andrew J. Simmons Chief Financial Officer STEALTHGAS INC. 011-30-210-6250-001 E-mail: simmons@stealthgas.com Investor Relations/Media: Nicolas Bornozis Capital Link, Inc. (New York) Tel. 212-661-7566 E-mail: nbornozis@capitallink.com