StealthGas Inc. 1 st Quarter 2006 Results. NASDAQ: GASS Earnings Presentation

Transcription

1 StealthGas Inc. 1 st Quarter 2006 Results NASDAQ: GASS Earnings Presentation

2 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as may, will, should, estimates, predicts, potential, continue, strategy, believes, anticipates, plans, expects, intends and similar expressions are intended to identify forwardlooking statements. Actual results and the timing of certain events may differ significantly from the results discussed or implied in the forward-looking statements. Among the factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company s Registration Statement filed with the Securities and Exchange Commission, particularly those describing variations on charter rates and their effect on the Company s revenues, net income and profitability as well as the value of the Company s fleet. Page 2

3 Business Strategy Since IPO to Present Day Business Strategy Triple Fleet by mid-2006 Moderate Leverage Visible Revenue Stream Modern Fleet Close Customer Relations Implementation Expanded fleet to 24 vessels by end of Q Acquired 3 additional vessels due for delivery by end of June 2006 expanding fleet to 27 vessels First Quarter 2006 net debt to capitalization: 36.9% 84% of voyage days fixed for Q (page 5) 76% of voyage days fixed for FY 2006 Our fleet average age is 10.5 years Industry average age is 16 years Utilization of 99.9 % in Q and Q All additional vessels acquired with Time Charters or Bareboat Charters ranging from 6 months to 3 years High quality customer base low counterparty risk Cost-Efficient Operations Pay Dividends Low Net Income breakeven of $ 4,965 per day in Q compared to $5,325 in Q Paying second consecutive dividend of cents per share on May 25, 2006 to shareholders of record on May 15, 2006 Page 3

4 Fleet Development Grew fleet to 24 vessels by end of Q Fleet to number 27 vessels by June 2006 Fleet expected to number 28 vessels by early Q StealthGas ranks #1 in owned vessels in 3,000 to 8,000 CBM segment IPO Established Oct Q Q Q Q Q Q Q Q Fleet Additional Vessels Page 4

5 Fleet Employment Profile Page 5

6 1st Quarter 2006 Financial Highlights 1 st Quarter Q1 Net Income $6.9 million, revenues of $16.9 million, EBITDA of $10.1 million EPS $ million shares outstanding Cash balance of $12.4 million Conservative leverage: net debt to capitalization of 36.9% Completed acquisition of 1 identified and 2 additional vessels Total fleet at the end of Q vessels Post 1 st Quarter Highlights Arranged new USD 79.8 million 10 year term facility with Fortis Bank with improved terms Acquired 3 further vessels to be delivered to us by the end of June 2006 Total Fleet by the end of June 2006 to be 27 vessels Declared second consecutive dividend of cents per share on May 25, 2006 to shareholders of record on May 15, 2006 Page 6

7 1 st Quarter 2006 Income Statement In US$ 000, except per share amounts Q Q Q Net Revenues $6,895 $12,810 $16,938 Operating Income 3,786 5,111 7,500 Net Income 3,624 4,536 6,959 EBITDA 5,093 7,181 10,160 EPS Number of Shares 6,000,000 13,565,217 14, Note: The total number of shares outstanding after the IPO is 14,000,000 Page 7

8 1 st Quarter 2006 Operating Highlights Fleet Data & Daily Results Fleet Data Q Q Q Average number of vessels in fleet Period end number of vessels in fleet Total calendar days for fleet 828 1,387 2,019 Total voyage days for fleet 828 1,383 2,015 Fleet utilization 100% 99.9% 99.9% Total charter days for fleet 828 1,334 1,897 Total spot market days for fleet Average Daily Results (in USD) Q Q Q Time Charter Equivalent TCE $8,027 $8,155 $7,870 Vessel Operating Expenses 1,809 2,277 2,148 Management Fees General & Administrative Expenses Total Vessel Operating Expenses 2,248 2,584 2,444 Page 8

9 Daily Breakeven Q vs Q Daily Cashflow and Net Income Breakeven Composition ($ per vessel per day) Q fleet calendar days: 1,387 Q fleet calendar days: 2,019 Q Q Expenses Cash Flow Net Income Cash Flow Net Income Operating $2,277 $2,277 $2,148 $2,148 General & Administrative Maintenance (surveys/drydocks) Interest Principal 1, ,672 0 Depreciation & Amortization 0 1, ,391 Total 5,480 5,325 5,246 4,965 Note: G&A includes Management Fees Page 9

10 Q Balance Sheet and Adjustments Pro forma and adjusted balance sheet does not include Q and Q cashflow from operations (USD in millions) Mar Actual Three Vessels Mar 31, 2006 Pro-Forma One Additional Vessel Mar 31, 2006 Pro-Forma Adjusted Cash & Equivalents 12.4 (3.7) 8.7 (2.8) 5.9 Vessels, Net Total Debt Shareholders Equity Total Capitalization Debt/Cap 41.6% 48.2% 49.2% Vessels 24 Additional Additional Vessel 28 Page 10

11 Acquisition Capex Estimated equity investment of $130.1 million to be funded with $109.0 million net IPO proceeds and $21.1 million cash from operations Expect to use approximately $6.5 million of Q2 and Q cash flow and $40.1 million of new debt to fund 3 additional vessels to be delivered in May/June 2006 and 1 additional vessel by early July 2006 Q Q Q Q Total Vessels Millions Vessels Millions Vessels Millions Vessels Millions Vessels Millions Identified Vessels 9 $ $ $125.0 Additional Vessels 3 $ $ $ $9.4 9 $109.2 Acquisition Capex 12 $ $ $ $ $234.2 Debt Incurrence ($50.0) ($14.0) ($33.5) ($6.6) ($104.1) Net Cash Outflow $105.4 $18.2 $3.7 $2.8 $130.1 Note: Estimated numbers, actual figures may vary depending on market conditions Page 11

12 Financial Estimator ($ in millions) 27 Vessels 28 Vessels 2006E 2006E Spot Voyage Days 1,591 1,744 Daily Spot Charter Rate - 4,250 cbm vessel?? Spot Revenue?? Period Charter Revenue (T/C and Bareboat) $60.6 $60.6 Total Revenue?? Operating Expenses SG&A Commissions Maintenance CapEx Total Expenses EBITDA?? D&A Interest Page 12

13 Strong LPGC Freight Rates Average earnings in the spot market excluding waiting time / 1 yr TC rates USD 1000 per month SR 8000 ETH 6500 SR 3500 SR 1yr TC 3500 PR 1yr TC Source: Inge Steensland AS Shipbrokers Page 13

14 Charter Market Rate Indicator (12 Month TCs) Q Average Current Q Forecast 3,200 CBM S/R 301, , ,000 3,500 CBM P/R 230, , ,000 6,000 CBM S/R 430, , ,000 15,000 CBM S/R 736, , ,000 38,000 CBM 1,000,000 1,100,000 1,100,000 60,000 CBM 998,077 1,100,000 1,100,000 78,000 CBM 1,100,000 1,100,000 1,100,000 Source: Lorentzen & Stemoco Page 14

15 Balanced outlook with average fleet growth ahead cbm fleet development vs TC rates/earnings* % Earnings/TC rates in USD 1000's per month (lines) % 12% 10% 8% 6% 4% 2% 0% -2% Fleet growth in % (bars) Overall fleet growth S/R fleet growth SR 6500 cbm TCE SR 3500 cbm 1 yr TC PR 3500 cbm 1 yr TC -4% * TC rates are of April rates. TCE figure is Jan-Apr average earnings in the spot market excluding waiting time Source: Inge Steensland AS Shipbrokers Page 15

16 APPENDIX Page 16

17 Increased LPG Supplies => Higher Freight Rates Expanding LPG supplies are driven by increased LNG production and crude oil refining 14 LNG Production CAGR = 12% Trillion Cubic Feet E 2006E 2007E 2008E 2009E 2010E LNG Production LPG supplies are expected to increase by 50% from the present 50 million tons to 75 million tons by 2010 and then to 85 million tons by 2015 Increased LPG supplies have already had a beneficial impact on freight rates and we believe this trend will continue Source: CMAI, Drewrys, VLO, ESAI, Purvin Gertz, PIRA, Poten & Partners. Page 17

18 LPG Macro Consumption Trends Increasing Urbanization and Rising Living Standards --> Rapid increase in consumption Japanese LPG consumption steady post-rapid development Average 22 years rapid growth, China should realize another decade China Urbanization: 20 Million/p.a., India: Further growth potential 25.0 LPG Consumption - Japan 100 Household LPG Usage in Asia Million Tons Japanese LPG Consumption Periods of Rapid LPG Demand Growth 0 Japan Malaysia Taiwai Korea Thailand Philippines China Duration kg per capita India Wietnam Indonesia Pakistan America years Europe years Japan years Korea years China Source: Poten & Partners years so far Page 18

19 Contacts Company Contact: Andrew J. Simmons Chief Financial Officer StealthGas Inc Investor Relations/Media: Nicolas Bornozis Capital Link, Inc.(New York) Tel Visit our Website at: Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information Page 19