STEALTHGAS INC. Reports First Quarter 2020 Financial And Operating Results

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: [phone] (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 [phone] (US Toll Dial In), [phone] (UK Toll Dial In).
Access Code: 5160967

A telephonic replay of the conference call will be available until June 2, 2020 by dialing [phone] (US Local Dial In), [phone] (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: [e-mail]

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