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STEALTHGAS INC. Reports First Quarter 2020 Financial And Operating Results

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ATHENS, Greece, May 26, 2020 (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 first quarter ended March 31, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

  • Operational utilization of 97.8% mainly due to few of our ships being in the spot market - equivalent to 8.4% of voyage days.
  • Only 23 days of technical off hire of which 21 days related to a technical failure of one LPG vessel.
  • Fleet calendar days, down 11.9% quarter over quarter to 3,811, attributed to our strategic fleet contraction.
  • About 69% of fleet days secured on period charters for the remainder of 2020, with total fleet employment days for all subsequent periods representing approximately $126 million in contracted revenues. Period coverage for 2021 is currently 31%.
  • Voyage revenues of $34.4 million in Q1 '20, a decrease of $4.0 million compared to Q1 '19 following the net reduction of our average owned fleet by four vessels, two fewer chartered-in vessels and one vessel- previously on time charter- which commenced a bareboat charter at the end of 2019.
  • Net Income of $3.0 million for the first quarter of 2020, corresponding to an EPS of $0.08.
  • EBITDA of $16.5 million in Q1 '20 (48% EBITDA Margin), compared to $17.1 million in Q1 '19 (45% EBITDA Margin).
  • Low gearing, as debt to assets stands at 37.6%, largely due to our intense repayment schedule.
  • Total cash of $42.6 million- expected to increase by about $25 million in Q2 ‘20 following the financing of the three Medium Gas Carriers owned by our newly established Joint Venture. This financing has already been concluded. The increase will be effected through a return of equity by the Joint Venture arrangement.
  • Purchased, through a tender offer, almost 1.4 million of GASS shares for a total consideration of $2.9 million during April 2020.

First Quarter 2020 Results:

  • Revenues for the three months ended March 31, 2020 amounted to $34.4 million, a decrease of $4.0 million, or 10.4%, compared to revenues of $38.4 million for the three months ended March 31, 2019, following the net reduction of our average owned fleet by four vessels, two fewer chartered-in vessels and one vessel- previously on time charter- which commenced a bareboat charter at the end of 2019.
  • Voyage expenses and vessels' operating expenses for the three months ended March 31, 2020 were $2.8 million and $13.2 million respectively, compared to $3.8 million and $12.9 million respectively, for the three months ended March 31, 2019. The $1.0 million decrease in voyage expenses was mainly attributed to a 43.2% quarter-on-quarter reduction of spot days. The 2.3% increase in vessels' operating expenses compared to the same period of 2019, is a result of unexpected costs incurred- of about $1 million- relating to the technical damage of one LPG vessel. We expect that the majority of this amount will be covered by insurance and reimbursed in the upcoming quarters of this year.
  • Drydocking costs for the three months ended March 31, 2020 and 2019 were $0.2 million and $0.2 million, respectively. Drydocking expenses during the first quarter of 2020 relate to a drydocking in progress, while the drydocking survey of one small LPG vessel was completed in the same period of 2019.
  • General and Administrative expenses for the three months ended March 31, 2020 amounted to $0.6 million compared to $1.1 million for the same period of last year. This decrease is mainly attributed to the fact that for the three months ended March 31, 2019 share based compensation expense was incurred, which was not the case for the three months ended March 31, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
  • Depreciation for the three months ended March 31, 2020 was $9.3 million, a $0.2 million decrease from $9.5 million for the same period of last year due to the decrease of the average number of our vessels.
  • Interest and finance costs for the three months ended March 31, 2020 and 2019 were $4.2 million and $6.0 million, respectively. The $1.8 million decrease from the same period of last year is mostly due to the decrease of our indebtedness and the decline of LIBOR rates.
  • As a result of the above, for the three months ended March 31, 2020, the Company reported Net income of $3.0 million, compared to a net income of $2.0 million for the three months ended March 31, 2019. The weighted average number of shares for the three months ended March 31, 2020 and March 31, 2019 was 39.4 million and 39.9 million, respectively.
  • Earnings per share, basic and diluted, for the three months ended March 31, 2020 amounted to $0.08 compared to earnings per share of $0.05 for the same period of last year.
  • Adjusted net income was $3.1 million or $0.08 earnings per share for the three months ended March 31, 2020 compared to adjusted net income of $2.1 million or $0.05 earnings per share for the same period of last year.
  • EBITDA for the three months ended March 31, 2020 amounted to $16.5 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 41.0 vessels were owned by the Company during the three months ended March 31, 2020, compared to 45.4 vessels for the same period of 2019.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following four chartering arrangements:

  • A two year time charter for its 2008 built product tanker, the Clean Thrasher, to a National Oil Company until June 2022.
  • A one year time charter for its 2010 built Aframax tanker, the Stealth Berana, to a National Oil Company until April 2021.
  • A six months time charter extension for its 2011 built LPG carrier, the Gas Elixir, to a Major Energy Trader until December 2020.
  • A four months time charter extension for its 1995 built LPG carrier, the Gas Pasha, to a Major Energy Trader until November 2020.

With these charters, the Company has total contracted revenues of approximately $126 million. Total anticipated voyage days of our fleet is 69% covered for the remainder of 2020 and currently, 31% for 2021.

Board Chairman Michael Jolliffe Commented

The first quarter of 2020 commenced quite promisingly as per our performance and profitability. Indeed, we are pleased that we generated net income of close to $3 million with a very strong operational utilization of 98%. However, the COVID-19 outbreak has startled not only the shipping markets but also the global economy. Future periods are governed by a question mark around LPG demand and period activity. In the short run, market has deteriorated and although StealthGas is quite protected due to high period coverage and low debt no prediction can be made as for how long the COVID-19 pandemic will be the major global concern- severely affecting the whole of the shipping industry. A second wave of this pandemic outbreak may hit this winter, and StealthGas is already taking a defensive position in order to ride this storm as smoothly as possible.

Conference Call details:

On May 26, 2020 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: +1 866 280 1157 (US Toll Free Dial In) or 08006941461 (UK Toll Free Dial In).
Access Code: 5160967

In case of any problems with the above numbers, please dial +1 6467871226 (US Toll Dial In), +44 (0) 8444936766 (UK Toll Dial In).
Access Code: 5160967

A telephonic replay of the conference call will be available until June 2, 2020 by dialing +1 (917) 677-7532 (US Local Dial In), +44 (0) 3333009785 (Standard International Dial In).
Access Code: 5160967

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.

StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. has a fleet of 50 vessels. The fleet is comprised of 46 LPG carriers, including eight Joint Venture vessels and an 11,000 cbm newbuilding pressurized LPG carrier with expected delivery in 2021. These LPG vessels have a total capacity of 431,527 cubic meters (cbm). The Company also owns three 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 drydockings, shipyard performance, changes in STEALTHGAS INC.'s operating expenses, including bunker prices, drydocking 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.

Fleet List and Fleet Deployment
For information on our fleet and further information:
Visit our website at www.stealthgas.com

Company Contact:
Fenia Sakellaris
STEALTHGAS INC.
011-30-210-6250-001
E-mail: info@stealthgas.com

Fleet Data:
The following key indicators highlight the Company's operating performance during the periods ended March 31, 2019 and March 31, 2020.

  FLEET DATA Q1 2019 Q1 2020    
  Average number of vessels (1) 45.4   41.0    
  Period end number of owned vessels in fleet 42   41    
  Total calendar days for fleet (2) 4,327   3,811    
  Total voyage days for fleet (3) 4,322   3,788    
  Fleet utilization (4) 99.9 % 99.4 %  
  Total charter days for fleet (5) 3,759   3,468    
  Total spot market days for fleet (6) 563   320    
  Fleet operational utilization (7) 98.8 % 97.8 %  
             

1) Average number of vessels is the number of owned 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 for fleet are the total days the vessels we operated 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 we operated 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 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 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:

Adjusted net income represents net income before loss on derivatives excluding swap interest received, share based compensation, net gain on sale of vessels and gain on deconsolidation of subsidiaries. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents EBITDA before share based compensation, loss on derivatives, net gain on sale of vessels and gain on deconsolidation of subsidiaries. Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. 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, Adjusted net income and Adjusted EPS, 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 to investors.

   
(Expressed in United States Dollars,
except number of shares)
Three Months Period Ended March 31st,
  2019   2020  
Net Income - Adjusted Net Income    
Net income 1,968,866   3,012,718  
Plus loss on derivatives 22,697   68,695  
Plus swap interest received 50,852   5,623  
Less net gain on sale of vessels (7,473 ) --  
Less gain on deconsolidation of subsidiaries (145,000 ) --  
Plus share based compensation 234,247   --  
Adjusted Net Income 2,124,189   3,087,036  
     
Net income – EBITDA    
Net income 1,968,866   3,012,718  
Plus interest and finance costs 5,982,871   4,233,197  
Less interest income (304,433 ) (112,960 )
Plus depreciation 9,474,186   9,321,961  
EBITDA 17,121,490   16,454,916  
     
Net income - Adjusted EBITDA    
Net income 1,968,866   3,012,718  
Plus loss on derivatives 22,697   68,695  
Less net gain on sale of vessels (7,473 ) --  
Less gain on deconsolidation of subsidiaries (145,000 ) --  
Plus share based compensation 234,247   --  
Plus interest and finance costs 5,982,871   4,233,197  
Less interest income (304,433 ) (112,960 )
Plus depreciation 9,474,186   9,321,961  
Adjusted EBITDA 17,225,961   16,523,611  
     
EPS - Adjusted EPS    
Net income 1,968,866   3,012,718  
Adjusted net income 2,124,189   3,087,036  
Weighted average number of shares 39,860,563   39,401,882  
EPS - Basic and Diluted 0.05   0.08  
Adjusted EPS 0.05   0.08  


 
StealthGas Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)
    For The Three Months Ended March 31,
    2019   2020
Revenues        
Revenues   38,442,818     34,376,758  
Expenses        
Voyage expenses   3,328,519     2,391,269  
Voyage expenses - related party   476,637     425,684  
Charter hire expenses   2,097,549     322,363  
Vessels' operating expenses   12,667,370     13,005,546  
Vessels' operating expenses - related party   249,000     225,500  
Drydocking costs   185,624     168,796  
Management fees - related party   1,515,485     1,336,010  
General and administrative expenses   1,122,087     567,676  
Depreciation   9,474,186     9,321,961  
Net gain on sale of vessels   (7,473 )   --  
Total expenses   31,108,984     27,764,805  
         
Income from operations   7,333,834     6,611,953  
         
Other (expenses)/income        
Interest and finance costs   (5,982,871 )   (4,233,197 )
Gain on deconsolidation of subsidiaries   145,000     --  
Loss on derivatives   (22,697 )   (68,695 )
Interest income   304,433     112,960  
Foreign exchange (loss)/gain   (16,788 )   952  
Other expenses, net   (5,572,923 )   (4,187,980 )
         
Income before equity in income of investees   1,760,911     2,423,973  
Equity income in joint ventures   207,955     588,745  
Net Income   1,968,866     3,012,718  
         
Earnings per share        
- Basic & Diluted   0.05     0.08  
Weighted average number of shares        
-Basic & Diluted   39,860,563     39,401,882  


 
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
    December 31,   March 31,
    2019   2020
Assets        
Current assets        
Cash and cash equivalents   68,465,342     28,034,255  
Trade and other receivables   4,217,101     4,150,307  
Other current assets   118,246     52,385  
Claims receivable   314,217     175,747  
Inventories   2,447,703     1,786,855  
Advances and prepayments   749,681     840,391  
Restricted cash   1,589,768     1,168,117  
Fair value of derivatives   30,381     --  
Total current assets   77,932,439     36,208,057  
         
Non current assets        
Advances for vessel under construction 2,988,903     3,022,114  
Operating lease right-of-use assets   473,132     66,055  
Vessels, net   835,152,403     825,830,442  
Other receivables   286,915     221,474  
Restricted cash   12,065,222     13,377,543  
Investments in joint ventures 25,250,173     67,837,418  
Fair value of derivatives   39,744     --  
Total non current assets   876,256,492     910,355,046  
Total assets   954,188,931     946,563,103  
Liabilities and Stockholders' Equity        
Current liabilities        
Payable to related parties   7,043,121     6,024,537  
Trade accounts payable   9,032,690     9,451,048  
Accrued and other liabilities   6,002,079     5,603,364  
Operating lease liabilities   473,132     66,055  
Customer deposits   968,000     968,000  
Deferred income   2,843,994     5,061,918  
Fair value of derivatives   37,567     50,215  
Current portion of long-term debt   40,735,556     48,083,126  
Total current liabilities   67,136,139     75,308,263  
Non current liabilities        
Fair value of derivatives   2,618,250     5,784,177  
Long-term debt   325,247,902     307,457,922  
Total non current liabilities   327,866,152     313,242,099  
Total liabilities   395,002,291     388,550,362  
         
Commitments and contingencies        
Stockholders' equity        
Capital stock   445,496     445,496  
Treasury stock   (24,361,145 )   (25,373,380 )
Additional paid-in capital   502,419,122     502,419,122  
Retained earnings   82,942,210     85,954,928  
Accumulated other comprehensive loss (2,259,043 )   (5,433,425 )
Total stockholders' equity   559,186,640     558,012,741  
Total liabilities and stockholders' equity 954,188,931     946,563,103  


 
StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
    For The Three Months Ended March 31,
    2019   2020
Cash flows from operating activities        
Net income for the period   1,968,866     3,012,718  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation   9,474,186     9,321,961  
Amortization of deferred finance charges   278,044     184,177  
Amortization of operating lease right-of-use assets   385,213     407,077  
Share based compensation   234,247     --  
Change in fair value of derivatives   73,549     74,318  
Equity income in joint ventures   (207,955 )   (588,745 )
Net gain on sale of vessels   (7,473 )   --  
Gain on deconsolidation of subsidiaries   (145,000 )   --  
Changes in operating assets and liabilities:        
(Increase)/decrease in        
Trade and other receivables   (421,367 )   132,235  
Other current assets   9,566     65,861  
Claims receivable   --     138,470  
Inventories   439,177     660,848  
Changes in operating lease liabilities   (385,213 )   (407,077 )
Advances and prepayments   94,211     (90,710 )
Increase/(decrease) in        
Balances with related parties   (4,263,783 )   584,166  
Trade accounts payable   633,331     418,358  
Accrued liabilities   342,180     (398,715 )
Deferred income   (1,265,697 )   2,217,924  
Net cash provided by operating activities   7,236,082     15,732,866  
         
Cash flows from investing activities        
Proceeds from sale of interests in subsidiaries   20,720,975     --  
Advances for vessel under construction   --     (33,211 )
Proceeds from sale of vessels, net   8,302,458     --  
Investment in joint ventures   --     (41,051,530 )
Advances to joint ventures   (456,610 )   (29,245 )
Net cash provided by / (used in) investing activities   28,566,823     (41,113,986 )
Cash flows from financing activities        
Stock repurchase   --     (1,012,235 )
Deferred finance charges paid   (152,751 )   --  
Advances from joint ventures       1,655,198  
Advances to joint ventures   --     (4,175,673 )
Loan repayments   (38,690,114 )   (10,626,587 )
Proceeds from long-term debt   11,250,000     --  
Net cash used in financing activities   (27,592,865 )   (14,159,297 )
Net increase/(decrease) in cash, cash equivalents and restricted cash   8,210,040     (39,540,417 )
Cash, cash equivalents and restricted cash at beginning of year   79,430,991     82,120,332  
Cash, cash equivalents and restricted cash at end of period   87,641,031     42,579,915  
Cash breakdown        
Cash and cash equivalents   74,797,178     28,034,255  
Restricted cash, current   980,416     1,168,117  
Restricted cash, non current   11,863,437     13,377,543  
Total cash, cash equivalents and restricted cash shown in the statements of cash flows 87,641,031     42,579,915  


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