This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

StealthGas CEO Discusses Q2 2011 Results - Earnings Call Transcript

We wish to maintain a strong focus on our operation side, and that is the reason behind the sale of these four older vessels. We believe that by removing them from the fleet and replacing them with brand new larger and higher specification ships, we will improve the overall performance of the company going forward.

As far as our newbuilding program is concerned, we have three more vessels to take delivery of. One is scheduled to be delivered next month. A second is scheduled for January 2012, and the last one is scheduled to be delivered in May.

After taking into consideration the total fleet of 37 ships, at the end of the second quarter 2011 our net debt to capitalization stood at only 44.8%, similar to the previous quarter. And taking into consideration the scheduled vessel deliveries, we estimate that we will continue to have a moderate ratio of below 50%. Our gross debt, which stood at approximately $350 million at the end of the quarter, will peak at about $370 million in the second quarter of 2012.

With the sale of the older vessels, we received, after repaying the debt outstanding on three of the four vessels, about $17 million that has further strengthened our balance sheet and liquidity. We look at the sale, from an operation side, as a good opportunity to enhance our liquidity and remove from the fleet these vessels that, due to their age and condition, it was difficult to trade them profitably. We replaced them with new vessels we can charter out at much higher rates with significantly less cost.

On the flip side, we had to [write up the close] on these sales as we have already said, approximately $5.6 million for the second quarter of 2011. We continue to strive to obtain a secure and visible revenue stream with stable and predictable cash flows.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs