0001193125-17-065713.txt : 20170301 0001193125-17-065713.hdr.sgml : 20170301 20170301160933 ACCESSION NUMBER: 0001193125-17-065713 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20170301 FILED AS OF DATE: 20170301 DATE AS OF CHANGE: 20170301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Navigator Holdings Ltd. CENTRAL INDEX KEY: 0001581804 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 000000000 STATE OF INCORPORATION: 1T FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36202 FILM NUMBER: 17654167 BUSINESS ADDRESS: STREET 1: 21 PALMER STREET CITY: LONDON STATE: X0 ZIP: SW1H 0AD BUSINESS PHONE: 44 (0) 20 7340 4852 MAIL ADDRESS: STREET 1: 21 PALMER STREET CITY: LONDON STATE: X0 ZIP: SW1H 0AD 6-K 1 d337844d6k.htm 6-K 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2017

Commission File Number: 001-36202

 

 

NAVIGATOR HOLDINGS LTD

(Translation of registrant’s name into English)

 

 

21 Palmer Street, London, SW1H 0AD

United Kingdom

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐.

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐.

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this Report on Form 6-K as Exhibit 1 is a copy of the press release issued by Navigator Holdings Ltd. (the “Company”) on March 1, 2017: Navigator Holdings Ltd. Preliminary Fourth Quarter and Financial Year 2016 Results.


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    NAVIGATOR HOLDINGS LTD.
Date: March 1, 2017     By:  

/s/ Niall J Nolan

    Name:   Niall J Nolan
    Title:   Chief Financial Officer


Exhibit 1

NAVIGATOR HOLDINGS LTD. PRELIMINARY FOURTH QUARTER AND FINANCIAL YEAR 2016 RESULTS

Highlights

 

    Navigator Holdings Ltd. (NYSE: NVGS) reports operating revenue of $75.5 million for the three months ended December 31, 2016. Operating revenue amounted to $294.1 million for the full year ended December 31, 2016.

 

    Net income was $7.6 million for the three months ended December 31, 2016. Net income was $44.6 million for the year ended December 31, 2016.

 

    Earnings per share was $0.14 for the three months ended December 31, 2016 and $0.81 for the full year ended December 31, 2016.

 

    EBITDA(1) was $33.8 million for the three months ended December 31, 2016 and $140.2 million for the year ended December 31, 2016.

 

    We took delivery of four newbuilding vessels during 2016, increasing our fleet to 33 vessels on the water as at December 31, 2016. In 2017 we have taken delivery of an additional two newbuildings, with the three remaining newbuildings expected to be delivered by July 2017.

 

    In October 2016, we entered into a new $220.0 million secured term loan and revolving credit facility, to refinance two loan facilities that were due to mature in April 2017, and to provide the finance for our final unfinanced newbuilding.

 

    In February 2017, two of our original ethylene carriers were placed on long-term time charters that will commence in either late 2017 or early 2018 with Braskem SA. These vessels will transport ethane from Enterprise Product Partners, Morgan’s Point Terminal, in the Houston Ship Channel to the Braskem ethylene complex in Brazil.

 

    In February 2017, we successfully issued $100.0 million in new 7.75% senior unsecured bonds maturing in 2021 in the Norwegian bond market. The net proceeds and cash on hand were used to repay all of our outstanding $125.0 million aggregate principal amount of 9% senior unsecured bonds that were due to mature in December 2017.

Fourth Quarter 2016 Financial Results Overview

Operating revenue for the three months ended December 31, 2016 was $75.5 million, a decrease of $3.2 million, or 4.1%, compared to the $78.7 million of operating revenue for the three months ended December 31, 2015. This decrease was due to a softening of the LPG seaborne transportation market.

For the fourth quarter of 2016, the average time charter equivalent rate (“TCE”) (2) across the entire fleet, including our fully-refrigerated vessels, was $692,213 per calendar month ($22,758 per day), compared to $921,069 per calendar month ($30,282 per day) for the comparable period in 2015.

Fleet utilization across the 33 vessels operating at the year end was 89.5% for the fourth quarter of 2016, up from 88.1% in the third quarter of 2016, but a reduction from 92.7% for the fourth quarter of 2015. This decrease from last year was primarily due to weaker demand for our vessels as a result of the softening of the LPG seaborne transportation market during the second half of 2016, leading to an increase in the number of idle days.

Operating revenue less voyage expenses amounted to $61.5 million for the three months ended December 31, 2016 compared to $72.3 million in the same three month period of 2015. This decrease was as a result of a reduction in TCE rates by $21.1 million, a reduction in utilization rates by $2.2 million, offset by a $12.5 increase due to additional vessels in our fleet during the three months ended December 31, 2016 compared to the three months ended December 31, 2015

Net income was $7.6 million for the three months ended December 31, 2016, or $0.14 per share compared to $23.8 million or $0.43 per share for the same period in 2015.

EBITDA(1) for the fourth quarter of 2016 was $33.8 million and $140.2 million for the full year ended December 31, 2016.


(1) EBITDA is not a measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA is a basis upon which we assess our financial performance. We believe that it presents useful information to investors regarding a company’s ability to service and/or incur indebtedness, and it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation to the most directly comparable GAAP financial measure.

The following table sets forth a reconciliation of EBITDA to net income, the most directly comparable measure calculated in accordance with GAAP, for the periods presented:

 

     Three months ended
December 31,
(in thousands)
     Year ended
December 31,
(in thousands)
 
     2015      2016      2015      2016  

Net income

   $ 23,821      $ 7,646      $ 98,094      $ 44,638  

Net interest expense

     7,103        8,940        29,730        32,142  

Income taxes

     190        575        800        1,177  

Depreciation and amortization

     14,515        16,625        53,453        62,280  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

   $ 45,629      $ 33,786      $ 182,077      $ 140,237  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(2) TCE rate is a non-GAAP financial measure. TCE rate is a measure of the average daily revenue performance of a vessel. TCE rate is a 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., time charters, voyage charters and contracts of affreightment, or “COAs”) under which the vessels may be employed between the periods. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters we pay all voyage expenses. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with operating revenues, less voyage expenses, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our method of calculating TCE rate is to divide operating revenue (net of voyage expenses) by operating days for the relevant time period. See the table below for a reconciliation to the most directly comparable GAAP financial measure.

The following table represents a reconciliation of TCE rate to operating revenue, the most directly comparable financial measure calculated in accordance with GAAP, for the periods presented:

 

     Three months ended
December 31, 2015
     Three months ended
December 31, 2016
 

Fleet Data:

     

Operating revenue

   $ 78,670      $ 75,455  

Voyage expenses

     6,325        13,914  
  

 

 

    

 

 

 

Operating revenue less Voyage expenses

     72,345        61,541  

Operating days

     2,389        2,704  

Average daily time charter equivalent rate

   $ 30,282      $ 22,758  


Conference Call Details:

Tomorrow, Thursday, March 2, 2017, at 9:00 A.M. ET, the Company’s management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote “Navigator” to the operator.

A telephonic replay of the conference call will be available until Thursday, March 9, 2017 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#

Audio Webcast:

There will also be a live, and then archived, webcast of the conference call, available through the Company’s website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Navigator Gas

Attention: Investor Relations Department

 

New York:   399 Park Avenue, 38th Floor, New York, NY 10022. Tel: +1 212 355 5893
London:   21 Palmer Street, London, SW1H 0AD.    Tel: +44 (0)20 7340 4850

About Us

Navigator Gas is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. Navigator’s fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, including three newbuildings scheduled for delivery by July 2017.


FORWARD LOOKING STATEMENTS

Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:

 

    future operating or financial results;

 

    pending acquisitions, business strategy and expected capital spending;

 

    operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;

 

    general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;

 

    our financial condition and liquidity, including our ability to obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;

 

    estimated future capital expenditures needed to preserve our capital base;

 

    our expectations about the receipt of our three newbuildings and the timing of the receipt thereof;

 

    our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or the useful lives of our vessels;

 

    our continued ability to enter into long-term, fixed-rate time charters with our customers;

 

    changes in governmental rules and regulations or actions taken by regulatory authorities;

 

    our expectation that in 2017 we will continue to provide in-house technical management for more of the vessels in our fleet;

 

    potential liability from future litigation;

 

    our expectations relating to the payment of dividends; and

 

    other factors discussed in other periodic filings with the U.S. Securities and Exchange Commission.

We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.


Navigator Holdings Ltd.

Consolidated Balance Sheets

(Unaudited)

 

     December 31,
2015
    December 31,
2016
 
     (in thousands except share data)  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 87,779     $ 57,272  

Accounts receivable, net

     9,050       7,059  

Accrued income

     5,647       13,134  

Prepaid expenses and other current assets

     8,754       8,541  

Inventories

     3,480       6,937  

Insurance recoverable

     10,289       855  
  

 

 

   

 

 

 

Total current assets

     124,999       93,798  

Non-current assets

    

Vessels in operation, net

     1,264,451       1,480,359  

Vessels under construction

     170,776       150,492  

Property, plant and equipment, net

     279       194  
  

 

 

   

 

 

 

Total non-current assets

     1,435,506       1,631,045  
  

 

 

   

 

 

 

Total assets

   $ 1,560,505     $ 1,724,843  
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities

    

Current portion of long-term debt, net of deferred financing costs

   $ 59,024     $ 78,464  

Senior unsecured bond

     —         25,000  

Accounts payable

     11,471       6,388  

Accrued expenses and other liabilities

     9,065       11,377  

Accrued interest

     3,117       2,932  

Deferred income

     6,606       3,522  
  

 

 

   

 

 

 

Total current liabilities

     89,283       127,683  
  

 

 

   

 

 

 

Non-current liabilities

    

Secured term loan facilities, net of current portion and deferred financing costs

     436,131       540,680  

Senior unsecured bond

     125,000       100,000  
  

 

 

   

 

 

 

Total non-current liabilities

     561,131       640,680  
  

 

 

   

 

 

 

Total liabilities

     650,414       768,363  

Commitments and contingencies

    

Stockholders’ equity

    

Common stock – $.01 par value; 400,000,000 shares authorized; 55,436,087 shares issued and outstanding, (2015: 55,363,467)

     554       554  

Additional paid-in capital

     586,451       588,024  

Accumulated other comprehensive loss

     (465     (287

Retained earnings

     323,551       368,189  
  

 

 

   

 

 

 

Total stockholders’ equity

     910,091       956,480  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,560,505     $ 1,724,843  
  

 

 

   

 

 

 


Navigator Holdings Ltd.

Consolidated Statements of Income

(Unaudited)

 

    

Three months ended
December 31,

(in thousands except share and per
share data)

   

Year ended

December 31,

(in thousands except share and per
share data)

 
     2015     2016     2015     2016  

Revenues

        

Operating revenue

   $ 78,670     $ 75,455     $ 315,223     $ 294,112  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Brokerage commissions

     1,804       1,430       6,995       5,812  

Voyage expenses

     6,325       13,914       33,687       42,201  

Vessel operating expenses

     21,150       22,611       78,842       90,854  

Depreciation and amortization

     14,515       16,625       53,453       62,280  

General and administrative costs

     2,915       3,348       11,011       12,528  

Other corporate expenses

     239       366       2,553       1,976  

Profit from sale of vessel

     —         —         (550     —    

Vessel write down following collision

     —         —         10,500       —    

Insurance recoverable from vessel repairs

     608       —         (9,892     504  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     47,556       58,294       186,599       216,155  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     31,114       17,161       128,624       77,957  

Other income/(expense)

        

Interest expense

     (7,166     (8,879     (28,085     (32,321

Write off deferred finance costs

     —         (102     (1,797     (102

Interest income

     63       41       152       281  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     24,011       8,221       98,894       45,815  

Income taxes

     (190     (575     (800     (1,177
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 23,821     $ 7,646     $ 98,094     $ 44,638  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic:

   $ 0.43     $ 0.14     $ 1.77     $ 0.81  

Diluted:

   $ 0.43     $ 0.14     $ 1.76     $ 0.80  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding:

        

Basic:

     55,363,467       55,436,087       55,360,004       55,418,626  

Diluted:

     55,741,907       55,810,365       55,706,104       55,794,481  
  

 

 

   

 

 

   

 

 

   

 

 

 


Navigator Holdings Ltd.

Consolidated Statements of Comprehensive Income

(Unaudited)

 

     Three months ended
December 31,
(in thousands)
     Year ended
December 31,
(in thousands)
 
     2015     2016      2015     2016  

Net income

   $ 23,821     $ 7,646      $ 98,094     $ 44,638  

Other Comprehensive Income/(Loss):

         

Foreign currency translation (loss)/gain

     (135     114        (211     178  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total Comprehensive Income

     23,686       7,760        97,883       44,816  


Consolidated Statements of Stockholders’ Equity

(Unaudited)

 

     (in thousands except share data)  
    

Number of

shares

     Common
Stock at 0.01
par value
     Additional
Paid-in
Capital
     Accumulated
Other
Comprehensive
Income / (Loss)
    Retained
Earnings
     Total  

January 1, 2015

     55,346,613      $ 553      $ 584,808      $ (254   $ 225,457      $ 810,564  

Restricted shares issued March 17, 2015

     16,854        1        —          —         —          1  

Net income

     —          —          —          —         98,094        98,094  

Foreign currency translation

     —          —          —          (211     —          (211

Share-based compensation plan

     —          —          1,643        —         —          1,643  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

December 31, 2015

     55,363,467      $ 554      $ 586,451      $ (465   $ 323,551      $ 910,091  

Restricted shares issued March 29, 2016

     72,620        —          —          —         —          —    

Net income

     —          —          —          —         44,638        44,638  

Foreign currency translation

     —          —          —          178       —          178  

Share-based compensation plan

     —          —          1,573        —         —          1,573  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

December 31, 2016

     55,436,087      $ 554      $ 588,024      $ (287   $ 368,189      $ 956,480  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 


Navigator Holdings Ltd.

Consolidated Statements of Cash Flows

(Unaudited)

 

     Year ended
December 31,
2015
    Year ended
December 31,
2016
 
     (in thousands)     (in thousands)  

Cash flows from operating activities

    

Net income

   $ 98,094     $ 44,638  

Adjustments to reconcile net income to net cash provided by operating activities

    

Depreciation and amortization

     53,453       62,280  

Payment of drydocking costs

     (11,558     (9,902

Share-based compensation

     1,643       1,573  

Amortization of deferred financing costs

     4,806       3,091  

Profit from sale of vessel

     (550     —    

Vessel write down following collision

     10,500       —    

Insurance recoverable from vessel repairs

     (10,289     60  

Unrealized foreign exchange

     (205     208  

Changes in operating assets and liabilities

    

Accounts receivable

     (1,855     1,991  

Inventories

     1,331       (3,457

Prepaid expenses and other current assets

     (4,408     (7,694

Accounts payable and other liabilities

     8,394       (6,040

Long-term accounts receivable

     198       —    
  

 

 

   

 

 

 

Net cash provided by operating activities

     149,554       86,748  
  

 

 

   

 

 

 

Cash flows from investing activities

    

Payment to acquire vessels

     (3,348     (1,733

Payment for vessels under construction

     (236,648     (239,179

Purchase of other property, plant and equipment

     (142     (75

Receipt of shipyard penalty payments

     1,933       1,901  

Insurance recoveries

     391       9,374  

Capitalized costs for the repair of Navigator Aries

     —         (8,441

Proceeds from sale of vessel net of costs

     31,958       —    
  

 

 

   

 

 

 

Net cash used in investing activities

     (205,856     (238,153
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from secured term loan facilities and revolving credit facilities

     157,700       327,670  

Direct financing costs of secured term loan facilities

     (5,879     (2,680

Repayment of secured term loan facilities and revolving credit facilities

     (70,266     (204,092
  

 

 

   

 

 

 

Net cash / provided by financing activities

     81,555       120,898  
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     25,253       (30,507

Cash and cash equivalents at beginning of period

     62,526       87,779  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 87,779     $ 57,272  
  

 

 

   

 

 

 

Supplemental Information

    

Total interest paid during the year, net of amounts capitalized

   $ 24,427     $ 29,815  
  

 

 

   

 

 

 

Total tax paid during the period

   $ 632     $ 601