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STEALTHGAS INC. Reports Third Quarter and Nine Months 2012 Financial and Operating Results

Monday, November 26, 2012 5:00 PM


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
 
 
 
StealthGas Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except number of shares)
  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
 
 
 
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
  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
 
 
 
StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
  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
CONTACT: Company Contact:
         Konstantinos Sistovaris
         Chief Financial Officer
         STEALTHGAS INC.
         011-30-210-6250-001
         E-mail: sistovaris@stealthgas.com

(Source: PrimeZone )
(Source: Quotemedia)

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