EX-99.2 3 y04934exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
(STEALTHGAS INC LOGO)
STEALTHGAS INC. REPORTS FIRST QUARTER 2011 FINANCIAL AND OPERATING RESULTS.
ATHENS, GREECE, May 16, 2011. 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, 2011.
Highlights:
    Net income of $1.5 million or $0.07 per share for the three months ended March 31, 2011.
 
    Voyage Revenues of $30.5 million for the three months ended March 31, 2011.
 
    Adjusted EBITDA of $10.5 million for the three months ended March 31, 2011.
First Quarter 2011 Results:
For the three months ended March 31, 2011, voyage revenues amounted to $30.5 million, an increase of $1.7 million, or 5.9%, compared to voyage revenues of $28.8 million for the three months ended March 31, 2010. The net income for the three months ended March 31, 2011 was $1.5 million or $0.07 per share, a decrease of $0.1 million, from net income of $1.6 million or $0.07 per share for the three months ended March 31, 2010.
For the three months ended March 31, 2011, the Company had a $1.6 million realized cash loss on interest rate swap arrangements, a $0.8 million unrealized non-cash loss on interest rate swap arrangements and foreign currency hedging arrangements, and a $0.5 million non-cash loss due to exchange rate movements on foreign currency deposits. This compares to a realized cash loss of $1.7 million and to an unrealized non-cash loss on interest rate swap arrangements and foreign currency hedging arrangements of $1.5 million for the three months ended March 31, 2010, as well as a $0.08 million non-cash impairment loss on a vessel delivered to new owners on April 9, 2010.
Voyage and operating expenses for the three months ended March 31, 2011 were $3.6 million and $10.5 million respectively, compared to $3.2 million and $9.2 million for the three months ended March 31, 2010. The increase of voyage expenses was due primarily to the increased level of fleet operational utilization during the quarter under spot voyage charters. The increase in operating expenses was due to a reduction in the average number of LPG vessels operating under bareboat charters (5 for the three months ended March 31, 2011 compared to 7 for the same period in 2010) as well as higher maintenance costs. The Company expects operating expenses to be reduced going forward as more vessels are scheduled to commence bareboat charters.
Adjusted EBITDA for the three months ended March 31, 2011 amounted to $10.5 million, an increase of $0.6 million from Adjusted EBITDA of $9.9 million for the three months ended March 31, 2010. A reconciliation of Adjusted EBITDA to Net Income and to Net Cash Provided by Operating Activities is set forth below.

 


 

Before the non-cash items as discussed above our net income was $2.8 million, or $0.13 per share for the three months ended March 31, 2011, as compared to a net income of $3.2 million or $0.14 per share for the three months ended March 31, 2010.
An average of 38.4 vessels were owned by the Company in the three months ended March 31, 2011, earning an average time-charter equivalent rate of approximately $7,930 per day as compared to 41.0 vessels, earning an average time-charter equivalent rate of $7,059 per day for the same period of 2010.
CEO Harry Vafias commented
The first quarter of 2011 was another profitable quarter for our Company. The improvement in the market that we experienced during the fourth quarter of last year continued in the first quarter of this year. Voyage revenues for the first quarter were the highest in our Company’s history. We reached another milestone during the first quarter with the delivery of our first of five Newbuilding gas carriers, that was followed by the delivery of the second one during April. Our focus is on improving the operational side of our business both on the revenue side and the expenses side. As such we believe that the sale of older vessels and the delivery of brand new vessels will improve our operational efficiency going forward. While at the same time strengthening our balance sheet and increasing our cash resources will position us favorably if the market improvement proves to be sustainable over the longer term.
Conference Call details:
On May 16, 2011 at 11:00 am EDT, 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 1631 510 7498 (US Toll Dial In), or +44 (0)1452 555 566 (Standard International Dial In). Please quote “65946056”.
A telephonic replay of the conference call will be available until May 22, 2011 by dialing 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: 65946056#
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 liquified petroleum gas (LPG) sector of the international shipping industry. STEALTHGAS INC. currently has a fleet of 35 LPG carriers with a total capacity of 161,678 cubic meters (cbm), three M.R. product tankers and one Aframax oil tanker. The company has also entered into agreements to acquire three new building LPG carriers with expected delivery through May 2012. Once these acquisitions, and the announced sales are completed, STEALTHGAS INC ‘s fleet will be composed of 35 LPG carriers with a total capacity of 171,614 cubic meters (cbm), 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 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
Company Contact:
Konstantinos Sistovaris
Chief Financial Officer
STEALTHGAS INC.
011-30-210-6250-001
E-mail: sistovaris@stealthgas.com
Fleet Data:
The following key indicators highlight the Company’s operating performance during the quarters ended March 31, 2010 and March 31, 2011.

 


 

                 
FLEET DATA   Q1 2010     Q1 2011  
Average number of vessels (1)
    41.0       38.4  
Period end number of vessels in fleet
    40       39  
Total calendar days for fleet (2)
    3,690       3,452  
Total voyage days for fleet (3)
    3,615       3,395  
Fleet utilization (4)
    98.0 %     98.3 %
Total time charter days for fleet (5)
    2,760       2,778  
Total spot market charter days for fleet (6)
    855       617  
Fleet operational utilization (7)
    86.2 %     92.8 %
                 
AVERAGE DAILY RESULTS   Q1 2010     Q1 2011  
Time Charter Equivalent — TCE (8)
  $ 7,059     $ 7,930  
Vessel operating expenses (9)
    2,480       3,044  
Management fees
    360       373  
General and administrative expenses
    170       166  
Total operating expenses (10)
    2,650       3,210  
 
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 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)   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.
Adjusted EBITDA Reconciliation:
Adjusted EBITDA represents net earnings before interest, taxes, depreciation and amortization.
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 United States generally accepted accounting principles, 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 March 31, 2010 and March 31, 2011:
                 
(figures in US $)   Q1 2010     Q1 2011  
Net Cash Provided By Operating Activities
  $ 18,082,375     $ 8,460,913  
Net increase in current assets, excluding cash
    2,615,043       1,898,486  
Net (increase) in current liabilities, excluding short-term portion of long term debt.
    (10,729,148 )     (514,062 )
Non-cash exchange difference
          (469,621 )
Impairment loss
    (76,910 )      
Interest income
    (67,577 )     (4,520 )
Interest and finance costs
    1,787,166       2,006,932  
Amortization of finance fees
    (109,791 )     (112,674 )
Share based compensation
    (48,585 )     (4,072 )
Change in fair value of derivatives
    (1,534,220 )     (771,456 )
Adjusted EBITDA
  $ 9,918,353     $ 10,489,926  
                 
(figures in US $)   Q1 2010     Q1 2011  
Net Income
  $ 1,614,147     $ 1,526,493  
Plus interest and finance costs
    1,787,166       2,006,932  
Less Interest income
    (67,577 )     (4,520 )
Plus Depreciation
    6,584,617       6,961,021  
Adjusted EBITDA
  $ 9,918,353     $ 10,489,926  

 


 

StealthGas Inc.
Unaudited Condensed Statements of Income
(Expressed in United States Dollars)
                 
    For The Three Months Ended  
    March 31,  
    2010     2011  
 
Revenues
               
Voyage revenues
    28,756,691       30,537,640  
 
 
               
Expenses
               
Voyage expenses
    3,239,736       3,613,851  
Vessels’ operating expenses
    9,151,148       10,507,306  
Dry-docking costs
    1,137,960       1,181,374  
Management fees
    1,326,555       1,287,985  
General and administrative expenses
    628,659       573,512  
Depreciation
    6,584,617       6,961,021  
Impairment loss
    76,910        
 
Total expenses
    22,145,585       24,125,049  
 
 
               
Income from operations
    6,611,106       6,412,591  
 
 
               
Other income and (expenses)
               
Interest and finance costs
    (1,787,166 )     (2,006,932 )
Change in fair value of derivatives
    (3,263,446 )     (2,336,268 )
Interest income
    67,577       4,520  
Foreign exchange loss
    (13,924 )     (547,418 )
 
Other expenses, net
    (4,996,959 )     (4,886,098 )
 
 
               
Net income
    1,614,147       1,526,493  
 
 
               
Earnings per share
               
- Basic
    0.07       0.07  
 
           
- Diluted
    0.07       0.07  
 
           
 
               
Weighted average number of shares
               
-Basic
    22,269,047       21,099,319  
 
           
-Diluted
    22,276,680       21,099,319  
 
           

 


 

StealthGas Inc.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in United States Dollars)
                 
    December 31,     March 31,  
    2010     2011  
 
Assets
               
Current assets
               
Cash and cash equivalents
    29,797,095       33,919,980  
Trade and other receivables
    2,414,008       2,968,159  
Claims receivable
    396,395       396,395  
Inventories
    1,840,092       3,421,058  
Advances and prepayments
    777,126       555,331  
Restricted cash
    4,495,198       5,914,620  
Fair value of derivatives
    5,407,633       3,432,346  
 
 
               
Total current assets
    45,127,547       50,607,889  
 
 
               
Non current assets
               
Advances for vessels under construction
    37,273,199       26,608,508  
Vessels, net
    603,065,011       616,578,046  
Other receivables
    42,572       27,736  
Restricted cash
    1,550,000       1,550,000  
Deferred finance charges, net of accumulated amortization of $978,574 and $1,091,248
    1,318,070       1,480,396  
 
 
               
Total non current assets
    643,248,852       646,244,686  
 
 
               
Total assets
    688,376,399       696,852,575  
 
 
               
Liabilities and Stockholders’ Equity
               
Current liabilities
               
Payable to related party
    9,515,372       11,268,247  
Trade accounts payable
    4,761,389       7,098,190  
Other accrued liabilities
    5,433,594       5,374,557  
Customer deposits
    285,000       285,000  
Deferred income
    2,754,630       1,925,553  
Other current liability
    2,687,500        
Current portion of long-term debt
    34,831,548       35,931,548  
 
 
               
Total current liabilities
    60,269,033       61,883,095  
 
 
               
Non current liabilities
               
Fair value of derivatives
    11,602,213       10,279,653  
Long-term debt
    310,254,401       316,789,781  
 
 
               
Total non current liabilities
    321,856,614       327,069,434  
 
 
               
Total liabilities
    382,125,647       388,952,529  
 
 
               
Commitments and contingencies
           
 
 
               
Stockholders’ equity
               
Capital stock
               
5,000,000 preferred shares authorized and zero outstanding with a par value of $0.01 per share 100,000,000 common shares authorized 21,104,881 and 21,104,881 shares issued and outstanding with a par value of $0.01 per share
    211,049       211,049  
Additional paid-in capital
    277,986,263       277,990,335  
Retained earnings
    28,508,349       30,034,842  
Accumulated other comprehensive (loss)
    (454,909 )     (336,180 )
 
 
               
Total stockholders’ equity
    306,250,752       307,900,046  
 
 
               
Total liabilities and stockholders’ equity
    688,376,399       696,852,575  
 

 


 

StealthGas Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
                 
    For The Three Months Ended March 31,  
    2010     2011  
 
Cash flows from operating activities
               
Net income for the period
    1,614,147       1,526,493  
 
               
Items included in net income not affecting cash flows:
               
Depreciation and amortization of deferred finance charges
    6,694,408       7,073,695  
Unrealized exchange differences
          469,621  
Share based compensation
    48,585       4,072  
Change in fair value of derivatives
    1,534,220       771,456  
Impairment loss
    76,910        
Changes in operating assets and liabilities:
               
(Increase)/decrease in
               
Trade and other receivables
    (620,171 )     (539,315 )
Claims receivable
    (186,320 )      
Inventories
    (1,102,459 )     (1,580,966 )
Advances and prepayments
    (706,093 )     221,795  
Increase/(decrease) in
               
Payable to related party
    11,271,099       1,752,875  
Trade accounts payable
    706,966       2,336,801  
Other accrued liabilities
    686,881       (59,037 )
Other current liability
          (2,687,500 )
Deferred income
    (1,935,798 )     (829,077 )
 
Net cash provided by operating activities
    18,082,375       8,460,913  
 
 
               
Cash flows from investing activities
               
Insurance proceeds
    444,411        
Acquisitions and advances for vessels under construction
    (118,991 )     (9,809,365 )
Proceeds from sale of vessels, net
    13,129,669        
(Increase) in restricted cash account
    (1,132,642 )     (1,419,422 )
 
Net cash provided by/(used in) investing activities
    12,322,447       (11,228,787 )
 
 
               
Cash flows from financing activities
               
Deferred finance charges
          (275,000 )
Customer deposits
    10,641        
Loan repayment
    (22,969,193 )     (8,864,620 )
Proceeds from long-term debt
          16,500,000  
 
Net cash (used in)/provided by financing activities
    (22,958,552 )     7,360,380  
 
 
               
 
Effect of exchange rate changes on cash
          (469,621 )
 
Net increase in cash and cash equivalents
    7,446,270       4,122,885  
Cash and cash equivalents at beginning of year
    44,076,339       29,797,095  
 
Cash and cash equivalents at end of period
    51,522,609       33,919,980