STEALTHGAS INC. Reports Second Quarter And Six Months 2012 Financial And Operating Results

ATHENS, Greece, Aug. 17, 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 second quarter and six months ended June 30, 2012.

Second Quarter 2012 Results:
  • Net income for the three months ended June 30, 2012 was $7.2 million, or $0.35 per share, compared to a net loss of $3.6 million, or $(0.17) per share, for the three months ended June 30, 2011. Lower voyage and operating costs, gain on sale of vessel and a lower derivative loss has resulted in the net income being higher despite revenues being lower.  
  • Voyage revenues for the three months ended June 30, 2012, amounted to $29.1 million, a decrease of $2.3 million, or 7.3%, compared to voyage revenues of $31.4 million for the three months ended June 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 three months ended June 30, 2012 were $2.7 million and $7.5 million, respectively, compared to $5.3 million and $9.9 million for the three months ended June 30, 2011. The $2.6 million, or 49.1%, decrease in voyage expenses was due primarily to the lower number of vessels under spot charters in the 2012 period. The $2.4 million, or 24.2%, 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 second quarter 2012 results are net losses from interest rate derivative instruments of $0.3 million. This amount includes $1.1 million, or $0.05 per share, of interest paid on recurring interest rate swap arrangements. The Company also realized a $0.1 million gain on sale of vessel. Adjusted net income was $6.5 million or $0.31 per share compared to $3.4 million or $0.16 per share for the same period last year.  
  • EBITDA for the three months ended June 30, 2012 amounted to $16.5 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income are set forth below.

An average of 36.5 vessels were owned by the Company in the three months ended June 30, 2012, earning an average time-charter equivalent rate of approximately $8,041 per day as compared to 38.7 vessels, earning an average time-charter equivalent rate of $7,457 per day for the same period of 2011.

Six Months 2012 Results:

  • Net income for the six months ended June 30, 2012 was $14.6 million, or $0.71 per share, compared to a net loss of $2.1 million, or $(0.10) per share, for the six months ended June 30, 2011. Lower voyage and operating costs, gain on sale of vessel and a lower derivative loss has resulted in the net income being higher despite revenues being lower.  
  • Voyage revenues for the six months ended June 30, 2012, amounted to $58.3 million, a decrease of $3.6 million, or 5.8%, compared to voyage revenues of $61.9 million for the six months ended June 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 six months ended June 30, 2012 were $5.3 million and $15.2 million, respectively, compared to $8.9 million and $20.4 million for the six months ended June 30, 2011. The $3.6 million, or 40.4%, decrease in voyage expenses was due primarily to the lower number of vessels under spot charters in the 2012 period. The $5.2 million, or 25.5%, 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 six months 2012 results are net losses from interest rate derivative instruments of $0.8 million. This amount includes $2.4 million, or $0.12 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 $11.7 million or $0.57 per share compared to $6.1 million or $0.29 per share for the same period last year.  
  • EBITDA for the six months ended June 30, 2012 amounted to $33.4 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income are set forth below.

An average of 36.7 vessels were owned by the Company in the six months ended June 30, 2012, earning an average time-charter equivalent rate of approximately $8,083 per day as compared to 38.5 vessels, earning an average time-charter equivalent rate of $7,726 per day for the same period of 2011.

Second quarter events:

As previously announced, the Gas Kalogeros was delivered to her new owners on May 4 th, 2012. The vessel was sold at a small profit.

The Company took delivery from the yard of the 7,500 cbm LPG carrier, Gas Esco, as expected in June 2012. With the delivery of the Gas Esco, the Company's newbuilding program has been completed and there are no remaining capital expenditure requirements.

The time charter for the 5,018 cbm, built 2011, LPG carrier, Gas Cerberus has been extended for one year until July 2013.

CEO Harry Vafias commented

"We have seen considerable improvement in our bottom line as compared to the same period last year, as a result of the strengthening of the LPG market and our chartering strategy. Even though we may expect some typical seasonal weakness during the summer months, we are confident that the fundamentals in our core segment point to further market improvements in the future. With an improved cash position, we are still evaluating strategic opportunities to grow and renew our fleet and increase our market share."

Conference Call details:

On August 17th, 2012 at 11:00 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 966 9439 (US Toll Free Dial In) or 0800 694 0257 (UK Toll Free Dial In).

In case of any problems with the above numbers, please dial +01 631 510 7498 (US Toll Dial In), or +44 (0)1452 555 566 (Standard International Dial In). Please quote "20389534".

A telephonic replay of the conference call will be available until August 23 rd, 2012 by dialling 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 55 00 00 (Standard International Dial In). Access Code: 20389534#

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 LPG sector of the international shipping industry. As of the date of this press release, STEALTHGAS INC. has a fleet of 33 LPG carriers with a total capacity of 161,822 cbm, three medium range (M.R.) product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). 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 D ata:

The following key indicators highlight the Company's operating performance during the second quarters and six months ended June 30, 2011 and June 30, 2012.  
FLEET DATA Q2 2011 Q2 2012 6M 2011 6M 2012
Average number of vessels (1) 38.7 36.5 38.5 36.7
Period end number of vessels in fleet 37 37 37 37
Total calendar days for fleet (2) 3,525 3,319 6,977 6,686
Total voyage days for fleet (3) 3,496 3,288 6,859 6,553
Fleet utilization (4) 99.2% 99.1% 98.3% 98.0%
Total charter days for fleet (5) 2,491 2,869 5,269 5,831
Total spot market days for fleet (6) 1,005 419 1,590 722
Fleet operational utilization (7) 87.5% 94.3% 90.1% 95.1%
AVERAGE DAILY RESULTS Q2 2011 Q2 2012 6M 2011 6M 2012
Time Charter Equivalent – TCE (8) $7,457 $8,041 $7,726 $8,083
Vessel operating expenses (9) 2,796 2,258 2,919 2,267
Management fees 358 316 366 318
General and administrative expenses 213 163 190 174
Total operating expenses (10) 3,009 2,421 3,109 2,442

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.

8) 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.

9) 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.

10) 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.

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 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.

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) Second Quarter Ended June 30, Six Months Period Ended June 30,
  2011 2012 2011 2012
Net Income - Adjusted Net Income        
Net income /(loss) (3,623,235) 7,185,909 (2,096,742) 14,565,421
Loss on derivatives 1,551,937 311,922 3,888,205 763,450
Less swap interest paid (1,251,634) (1,057,038) (2,816,445) (2,374,186)
Net (gain)/loss on sale of vessels 3,077,157 (97,444) 3,077,157 (1,372,409)
Impairment loss 2,571,088 ---- 2,571,088 ----
Unrealized exchange loss 1,038,384 114,266 1,508,005 93,850
Adjusted Net Income 3,363,697 6,457,615 6,131,268 11,676,12 6
         
EBITDA - Adjusted EBITDA        
Net income (3,623,235) 7,185,909 (2,096,742) 14,565,421
Plus interest and finance costs 2,152,161 2,332,943 4,159,093 4,790,466
Less interest income (31,439) (58,754) (35,959) (106,241)
Plus depreciation 6,828,639 7,072,883 13,789,660 14,108,225
EBITDA 5,326,126 16,532,981 15,816,052 33,357,871
         
Adjusted Net Income 3,363,697 6,457,615 6,131,268 11,676,126
Plus interest and finance costs 2,152,161 2,332,943 4,159,093 4,790,466
Less interest income (31,439) (58,754) (35,959) (106,241)
Plus depreciation 6,828,639 7,072,883 13,789,660 14,108,225
ADJUSTED EBITDA 12,313,058 15,804,687 24,044,062 30,468,57 6
         
EPS - Adjusted EPS        
Net income (3,623,235) 7,185,909 (2,096,742) 14,565,421
Adjusted net income 3,363,697 6,457,615 6,131,268 11,676,126
Weighted average number of shares 21,104,214 20,552,568 21,101,448 20,552,568
EPS (0.17) 0.35 (0.1 0 ) 0.71
Adjusted EPS 0.16 0.31 0.29 0.57
 
 
StealthGas Inc.
Unaudited Statements of Operations
(Expressed in United States Dollars, except number of shares)
  Quarters Ended June 30, Six Month Periods Ended June 30,
  2011 2012 2011 2012
         
Revenues        
Voyage revenues  31,366,161  29,147,877  61,903,801  58,270,694
         
Expenses        
Voyage expenses  5,296,192  2,708,448  8,910,043  5,300,383
Vessels' operating expenses  9,856,447  7,493,493  20,363,753  15,158,558
Dry-docking costs  545,143  499,819  1,726,517  1,782,904
Management fees  1,263,405  1,048,533  2,551,390  2,128,703
General and administrative expenses  751,241  542,372  1,324,753  1,165,383
Depreciation  6,828,639  7,072,883  13,789,660  14,108,225
Impairment loss  2,571,088  ----   2,571,088  ---- 
Net (gain)/loss on sale of vessels  3,077,157  (97,444)  3,077,157  (1,372,409)
Total expenses  30,189,312  19,268,104  54,314,361  38,271,747
         
Income from operations  1,176,849  9,879,773  7,589,440  19,998,947
         
Other (expenses)/income        
Interest and finance costs  (2,152,161)  (2,332,943)  (4,159,093)  (4,790,466)
Loss on derivatives  (1,551,937)  (311,922)  (3,888,205)  (763,450)
Interest income  31,439  58,754  35,959  106,241
Foreign exchange gain/(loss)  (1,127,425)  (107,753)  (1,674,843)  14,149
Other expenses, net  (4,800,084)  (2,693,864)  (9,686,182)  (5,433,526)
         
Net income/(loss)  (3,623,235)  7,185,909  (2,096,742)  14,565,421
         
Earnings / (Loss) per share         
- Basic  (0.17)  0.35  (0.10)  0.71
- Diluted  (0.17)  0.35  (0.10)  0.71
         
Weighted average number of shares       
-Basic 21,104,214 20,552,568 21,101,448 20,552,568
-Diluted 21,104,214 20,552,568 21,101,448 20,552,568
 
 
 
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
  December 31, 2011 June 30, 2012
     
Assets    
Current assets    
Cash and cash equivalents 43,539,303 57,018,088
Trade and other receivables 1,545,658 1,664,047
Claims receivable 516,403 146,547
Inventories 2,416,108 2,338,904
Advances and prepayments 628,623 791,663
Restricted cash 6,954,363 5,652,673
Vessel held for sale 921,285  ----
Total current assets 56,521,743 67,611,922
     
Non current assets    
Advances for vessels under construction 22,347,811  ----
Vessels, net 613,832,973 649,267,998
Other receivables  ---- 68,527
Restricted cash 1,300,000 1,300,000
Deferred finance charges, net of accumulated    
 amortization of $1,374,020 and $1,582,501 1,707,624 1,499,143
Total non current assets 639,188,408 652,135,668
Total assets 695,710,151 719,747,590
     
Liabilities and Stockholders' Equity    
Current liabilities    
Payable to related party 7,874,990 7,366,699
Trade accounts payable 6,453,807 5,655,899
Accrued liabilities 4,749,162 4,110,082
Customer deposits 275,000 275,000
Deferred income 2,789,186 3,639,316
Fair value of derivatives  ---- 1,493,507
Current portion of long-term debt 33,166,887 35,787,544
Current portion of long-term debt associated with vessel held for sale 791,823 ----
Total current liabilities 56,100,855 58,328,047
     
Non current liabilities    
Fair value of derivatives 9,401,798 6,259,873
Long-term debt 317,109,471 327,458,540
Total non current liabilities 326,511,269 333,718,413
Total liabilities 382,612,124 392,046,460
     
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 51,623,561
Accumulated other comprehensive income 72,718 110,400
Total stockholders' equity 313,098,027 327,701,130
Total liabilities and stockholders' equity 695,710,151 719,747,590
 
 
StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
  Six Month Periods Ended June 30,
  2011 2012
     
Cash flows from operating activities    
Net income / (loss) for the period  (2,096,742)  14,565,421
     
Items included in net income/(loss) not affecting cash flows:  
Depreciation  13,789,660  14,108,225
Amortization of deferred finance charges  203,482  208,481
Unrealized exchange loss  1,508,005  93,850
Share based compensation  4,071  ---- 
Change in fair value of derivatives  1,071,760  (1,610,736)
Impairment loss  2,571,088  ---- 
Net (gain)/loss on sale of vessels  3,077,157  (1,372,409)
     
Changes in operating assets and liabilities:  
(Increase)/decrease in    
Trade and other receivables  85,331  (186,916)
Claims receivable  (13,410)  (259,483)
Inventories  (1,478,363)  77,204
Advances and prepayments  385,943  (163,040)
Increase/(decrease) in    
Payable to related party  (271,935)  (508,291)
Trade accounts payable  1,711,023  (797,908)
Accrued liabilities  (444,945)  (399,080)
Other current liability  (2,687,500)  ---- 
Deferred income  (1,264,642)  850,130
Net cash provided by operating activities  16,149,983  24,605,448
     
Cash flows from investing activities    
Insurance proceeds  240,980  629,339
Proceeds from sale of vessels, net  19,740,194  18,136,907
Acquisitions and advances for vessel under construction  (28,503,758)  (43,278,652)
Decrease in restricted cash account  ----   1,301,690
Increase in restricted cash account  (31,321)  ---- 
Net cash used in investing activities  (8,553,905)  (23,210,716)
     
Cash flows from financing activities    
Deferred finance charges  (710,000)  ---- 
Customer deposits paid  (285,000)  ---- 
Loan repayment  (25,278,413)  (31,072,097)
Proceeds from long-term debt  32,900,000  43,250,000
Net cash provided by financing activities  6,626,587  12,177,903
     
Effect of exchange rate changes on cash  (1,508,005)  (93,850)
     
Net increase in cash and cash equivalents  12,714,660  13,478,785
Cash and cash equivalents at beginning of period  29,797,095  43,539,303
Cash and cash equivalents at end of period  42,511,755  57,018,088

Fleet Profile and Fleet Deployment:

The table below shows the Company's fleet development and deployment as of today: 
LPG Carrier Fleet
Vessel Vessel Size (cbm) Vessel Type Year Built Delivered To GASS Employment Status Charter Expiration (1)
CURRENT FLEET
Gas Cathar 7,517 F.P. 2001 Oct-05 Time Charter  May-13
Gas Esco 7,500 F.P. 2012 Jun-12 Time Charter  Jun-17
Gas Husky 7,500 F.P. 2011 Jan-12 Bareboat  Jan-17
Gas Premiership 7,200 F.P. 2001 Mar-08 Spot  --
Gas Haralambos 7,000 F.P. 2007 Oct-07 Time Charter  Jun -13
Gas Marathon 6,572 F.P. 1995 Nov-05 Time Charter  Dec -12
Gas Moxie 6,526 F.P. 1992 May-05 Spot  --
Gas Flawless 6,300 F.P. 2007 Feb-07 Time Charter  Nov-12
Gas Monarch 5,018 F.P. 1997 Dec-05 Spot  --
Lyne 5,014 F.P. 1996 May-06 Bareboat  May-13
Gas Emperor 5,013 F.P. 1995 Feb-05 Spot  --
Gas Texiana 5,001 F.P. 1995 Nov-05 Time Charter  Jan-14
Sir Ivor 5,000 F.P. 2003 May-06 Bareboat  May-13
Gas Icon 5,000 F.P. 1994 Jun-07 Time Charter  Aug-12
Gas Defiance 5,000 F.P. 2008 Aug-08 Time Charter  Jan--15
Gas Shuriken 5,000 F.P. 2008 Oct-08 Time Charter  Nov-14
Gas Elixir 5,018 F.P. 2011 Feb-11 Bareboat  Dec-15
Gas Cerberus 5,018 F.P. 2011 Apr-11 Time Charter  Jul-13
Gas Myth 5,018 F.P. 2011 Sep-11 Time Charter  Nov-14
Gas Sincerity 4,123 F.P. 2000 Nov-05 Bareboat  Aug-14
Gas Spirit 4,112 F.P. 2001 Dec-05 Bareboat  Jan-16
Gas Zael 4,111 F.P. 2001 Dec-05 Bareboat  Jan-14
Gas Kaizen 4,109 S.R. 1991 Nov-04 Spot  --
Gas Evoluzione 3,517 F.P. 1996 Jul-07 Spot  --
Gas Astrid 3,500 F.P. 2009 Apr-09 Bareboat  Apr-14
Gas Legacy 3,500 F.P. 1998 Oct-05 Time Charter  Oct-12
Gas Sikousis 3,500 F.P. 2006 Aug-07 Bareboat  May-16
Gas Exelero 3,500 F.P. 2009 Jun-09 Bareboat  Jun-14
Gas Arctic 3,434 S.R. 1992 Apr-05 Time Charter  Jan-13
Gas Ice 3,434 S.R. 1991 Apr-05 Time Charter  Jan-13
Chiltern 3,312 F.P. 1997 Jun-07 Bareboat  May-13
Gas Pasha 3,244 F.P. 1995 Jun-06 Time Charter  Jan-15 
Gas Crystal 3,211 S.R. 1990 Nov-05 Time Charter   Sep-12 
TOTAL LPG CARRIER FLEET: 33 VESSELS 161,822 Cbm          
                         
 Tanker Fleet 
Vessel Vessel Size (dwt) Vessel Type Year Built Delivered To GASS Employment Status Charter Expiration(1)
Navig8 Fidelity 47,000 MR Product Tanker 2008 Jan-08 Bareboat Jan-15
Navig8 Faith 47,000   MR Product Tanker 2008 Feb-08 Bareboat Feb-15
 Alpine Endurance 46,000 MR Product Tanker 2009 Jul-09 Time Charter Jul-16
Spike 115,804 Aframax Oil Tanker 2010 Jul-10 Bareboat Jul-15
TOTAL TANKER FLEET:  4 VESSELS 255,804 dwt          
  • F.P.: Fully-Pressurized
  • S.R.: Semi-Refrigerated
  • M.R.: Medium Range

   (1)    Earliest date charters could expire. 
CONTACT: Company Contact:         Konstantinos Sistovaris         Chief Financial Officer         STEALTHGAS INC.         011-30-210-6250-001         E-mail: sistovaris@stealthgas.com