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 2,519The 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 $ 8,869,198Adjusted 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 $ 19,029,081Conference 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 ============= =============
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