MONACO--(BUSINESS WIRE)--GasLog Ltd. (“GasLog”) (NYSE: GLOG), an international owner, operator and manager of liquefied natural gas (“LNG”) carriers, today reported its financial results for the quarter ended September 30, 2012.
Highlights
| • | For the third quarter, GasLog reports Adjusted EBITDA(1) of $9.7 million, Adjusted Profit(1) of $4.0 million and Profit of $2.9 million. |
| • | Adjusted EPS(1) of $0.06 and EPS of $0.05 for the third quarter of 2012. |
| • | Quarterly dividend of $0.11 per common share is payable on December 17, 2012. |
| • | Continued strong fundamentals for the LNG industry. |
| • | 100% utilization of GasLog Savannah and GasLog Singapore during the third quarter of 2012. |
| • |
The eight LNG newbuildings are on schedule and within budget. |
| • | 62% of the floating interest rate exposure on our fully funded debt program has been hedged at a weighted average interest rate of approximately 4.3% (including margin) as of September 30, 2012. |
Chairman & CEO Statement
Mr. Peter G. Livanos, Chairman and Chief Executive Officer, stated “We are pleased with our third quarter results, which exceeded internal expectations, reflecting lower general and administrative expenses. We are announcing today our first dividend as a public company. The 11 cents per share, as earlier promised, will be paid in the fourth quarter. The strong revenue reflects the continued 100% utilization of our existing fleet. Our construction program at Samsung Heavy Industries is on time and on budget. The first ships are currently undergoing outfitting and will be delivered in the first quarter of 2013. Concurrently with the delivery to us by the shipyard they will commence their charters to the BG group. We see additional new requirements for LNG ships emerging that support our optimism regarding our 2 open vessels. We are studying a number of alternative financial structures, including an MLP, that we feel could be beneficial to our growth aspirations and shareholder value. We believe our high quality technical platform and customer relations positions us well to take advantage of the growth in the LNG trade.”
Dividend Declaration
On November 20, 2012, the Board of Directors declared a quarterly cash dividend of $0.11 per common share payable on December 17, 2012 to stockholders of record as of December 3, 2012.
Financial Summary
Revenues were $16.9 million (which eliminates $1.2 million of intercompany revenue) for the quarter ended September 30, 2012 ($15.9 million for the quarter ended September 30, 2011). The increase is attributable to an increase in revenues in the vessel management segment from external customers of $0.9 million and an increase in revenues in the vessel ownership segment of $0.1 million, with GasLog’s existing fleet performing at 100% utilization.
Vessel operating and supervision costs were $3.6 million for the quarter ended September 30, 2012 ($3.1 million for the quarter ended September 30, 2011). The increase is mainly attributable to an increase in employee costs related to new employees hired to fulfill the planned new requirements from our existing customers and an increase in technical maintenance and crew expenses in the vessel ownership segment.
General and administrative expenses were $2.9 million for the quarter ended September 30, 2012 ($3.0 million for the quarter ended September 30, 2011).
Financial costs were $2.9 million for the quarter ended September 30, 2012 ($2.3 million for the quarter ended September 30, 2011). The increase is primarily a result of increased interest expense as a result of swapping floating rate interest for fixed rate interest in connection with the outstanding indebtedness related to the vessel GasLog Savannah.
Profit for the period was $2.9 million for the quarter ended September 30, 2012 ($4.6 million for the quarter ended September 30, 2011). This decrease is mainly attributable to a $1.5 million increase in non-cash loss on interest rate swaps, largely resulting from mark-to-market valuations and to the aforementioned factors.
Adjusted Profit(1) was $4.0 million for the quarter ended September 30, 2012 ($4.8 million for the quarter ended September 30, 2011), after excluding the effects of the net loss on interest rate swaps and foreign exchange gains.
Adjusted EBITDA(1) was $9.7 million for the quarter ended September 30, 2012 ($10.3 million for the quarter ended September 30, 2011).
Adjusted EPS(1) was $0.06 for the quarter ended September 30, 2012 ($0.12 for the quarter ended September 30, 2011). EPS was $0.05 for the quarter ended September 30, 2012 ($0.12 for the quarter ended September 30, 2011). The decrease in Adjusted EPS(1) and EPS is attributable to the decrease in Adjusted Profit(1) and Profit and the increase in the weighted average number of shares following the completion of the IPO and the concurrent private placement.
As GasLog stated in the final prospectus filed April 2, 2012 for its IPO, the ramp-up of general and administrative expenses is expected to exceed revenue growth in 2012, as GasLog’s newbuildings will only commence delivery in 2013. Accordingly, GasLog expects 2012 profit will be lower than in 2011.
For a detailed discussion of GasLog’s financial results for the quarter ended September 30, 2012, please refer to the Financial Report for the Three Months and Nine Months Ended September 30, 2012, furnished on Form 6-K to the United States Securities and Exchange Commission (the “Q3 6-K”).
http://www.gaslogltd.com/investor-relations/sec-filings
Operating Results
The following table highlights certain financial information for GasLog’s two segments, the vessel ownership segment and the vessel management segment, for the quarters ended September 30, 2012 and 2011. A presentation of Unaudited Interim Financial Information is attached as Exhibit I.
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In thousands of
U.S. Dollars |
Vessel Ownership
Segment |
Vessel Management
Segment |
Unallocated/Eliminations | Total | |||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
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| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | ||||||||||||||||||||||||||||||
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| Revenue from external customers | $ | 14,078 | $ | 14,147 | $ | 1,840 | $ | 2,788 | — | — |
|
$ |
15,918 | $ | 16,935 | ||||||||||||||||||||||
| Profit/(loss) | $ | 6,103 | $ | 3,802 | $ | 42 | $ | 676 | $ | (1,573 | ) | $ | (1,554 | ) | $ | 4,572 | $ | 2,924 | |||||||||||||||||||
|
Adjusted Profit(1)/(loss) |
$ | 6,309 | $ | 5,248 | $ | 42 | $ | 676 | $ | (1,537 | ) | $ | (1,879 | ) | $ | 4,814 | $ | 4,045 | |||||||||||||||||||
| EBITDA(1) | $ | 11,497 | $ | 9,793 | $ | 84 | $ | 770 | $ | (1,553 | ) | $ | (1,939 | ) | $ | 10,028 | $ | 8,624 | |||||||||||||||||||
| Adjusted EBITDA(1) | $ | 11,704 | $ | 11,239 | $ | 84 | $ | 770 | $ | (1,517 | ) | $ | (2,265 | ) | $ | 10,271 | $ | 9,745 | |||||||||||||||||||
|
EPS – basic and diluted |
0.12 | 0.05 | |||||||||||||||||||||||||||||||||||
| Adjusted EPS(1) – basic and diluted | 0.12 | 0.06 | |||||||||||||||||||||||||||||||||||
(1) EBITDA, Adjusted EBITDA, Adjusted Profit and Adjusted EPS are non-GAAP financial measures, and should not be used in isolation or as a substitute for GasLog’s financial results presented in accordance with IFRS. For definitions and reconciliations of these measurements to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to Exhibit II at the end of this press release.
Contracted Charter Revenues
GasLog’s contracted charter revenues are estimated to increase from $56 million for the fiscal year 2012 to $211 million for the fiscal year 2015, based on contracts in effect as of September 30, 2012 for the eight ships in GasLog’s owned fleet for which time charters have been secured, including contracts for six newbuildings that are scheduled to be delivered on various dates in 2013 and 2014. For further details please refer to the Q3 6-K.
Liquidity and Financing
As of September 30, 2012, GasLog had cash and cash equivalents of $26.7 million and short-term investments in time deposits of $211.8 million.
As of September 30, 2012, GasLog had an aggregate of $262.6 million of indebtedness outstanding under two credit agreements, of which $24.7 million is repayable within one year.
GasLog’s current commitments for capital expenditures are related to the eight LNG carriers on order, which have a gross aggregate contract price of approximately $1.55 billion. As of September 30, 2012, the total remaining balance of the contract prices of the eight newbuildings on order was $1.36 billion, for which there are $1.13 billion of undrawn credit facilities and $238.5 million in cash, cash equivalents and short-term investments as of September 30, 2012, which includes proceeds from GasLog’s IPO and concurrent private placement completed on April 4, 2012.
Interest Rate Swaps
As of September 30, 2012, GasLog has entered into fifteen interest rate swap agreements for a total notional amount of $865.7 million. This is in relation to the outstanding indebtedness of $262.6 million and the new loan agreements of $1.13 billion in the aggregate that will be drawn by GasLog through its subsidiaries upon delivery of the newbuildings. In total 62.2% of GasLog’s expected floating interest rate exposure has been hedged at a weighted average interest rate of approximately 4.3% (including margin) as of September 30, 2012. During the third quarter of 2012, GasLog recognized a loss of $1.7 million on interest rate swaps, primarily attributable to the loss from the mark-to-market valuation of six interest rate swaps agreements signed in 2012 which do not qualify for hedge accounting.
Business Update
As of September 30, 2012, the eight ships under construction at Samsung Heavy Industries were on schedule and within budget. Of these eight ships, two were launched during Q2 2012 and they are on schedule for delivery during Q1 2013, and a third ship was launched in Q3 2012 and is scheduled for delivery during Q2 2013. Five of the eight ships that have now progressed to the steel cutting stage or beyond are scheduled for delivery in 2013.
The two ships in GasLog’s existing fleet, currently on multi-year charters to a subsidiary of BG Group plc, performed without any off-hire during the quarter ended September 30, 2012, thereby achieving full utilization for the period.
As of September 30, 2012, two of the newbuildings remain uncommitted and GasLog continues to hold options for two additional LNG carriers at Samsung Heavy Industries.
LNG Industry Update
GasLog believes the current supply and demand dynamics of the LNG industry are positive for LNG shipping. There continues to be progress on new production projects, and recent announcements in the LNG industry regarding additional LNG production projects are expected to create increased requirements for LNG carriers.
The third quarter of 2012 saw the final investment decision ("FID") by Cheniere Energy on the construction of two LNG production trains at their Sabine Pass, Louisiana facility, for a planned first-production as early as 2015. These volumes are set to be the first commercial LNG exports produced in the lower-48 states, and may mark the commencement of the USA as a large future LNG exporter. Elsewhere, a tolling agreement was signed between the developers of Freeport LNG export project in Texas, and Japanese buyers. There are many US-based LNG export projects in the planning stages, all seeking to capitalize on relatively inexpensive natural gas in the US. In Australia, the Australia Pacific LNG project took FID on a second production train, with an expected start-up in 2016. In East Africa, we have seen further increases in gas reserve estimates around which LNG exports may be developed.
We have recently seen some older technology ships experiencing idle time. However, on a historical basis LNG shipping rates remain very firm, and we expect this firmness to be reflected in the longer-term charter market.
GasLog believes the robust development of new LNG supply projects and growing global demand for natural gas is likely to drive the need for more LNG carriers. LNG project developers are typically large multinational oil and gas companies with exacting standards for safety and reliability. In addition, we continue to expect a preference for the latest technology in ship design and propulsion. GasLog believes first class charterers will continue to engage experienced LNG shipowners to provide high quality LNG carriers for multi-year charter requirements.
Outlook
GasLog believes the strong fundamentals of the LNG industry will provide significant growth opportunities for GasLog’s high quality LNG shipping operations. Focus in the near term will be on delivering the growth of the business, through the on-time delivery of the newbuilding fleet, while ensuring full utilization of the existing ships. GasLog expects that its strategy of leveraging its established platform and customer relationships will aid in qualifying for charter possibilities for the two uncommitted newbuildings and the options it holds for two additional newbuildings. GasLog’s experience and track record may also allow GasLog to explore possibilities for industry consolidation of new entrants and to be flexible to adjust to market developments.
Conference Call
GasLog will host a conference call at 8:30 a.m. Eastern Time (1:30 p.m. London Time) on Wednesday, November 21, 2012 to discuss the third quarter 2012 results. The dial-in number is 1-212-444-0895 (New York, NY) and +44 (0)207 136 6283 (London, UK), passcode is 9524315. A live webcast of the conference call will also be available on the investor relations page of GasLog’s website at http://www.gaslogltd.com/investor-relations.
For those unable to participate in the conference call, a replay will be available from 12:30 p.m. Eastern Time (5:30 p.m. London Time) on November 21, 2012 until 12:30 p.m. Eastern Time on Wednesday November 28, 2012 (5:30 p.m. London Time). The replay dial-in number is 1-347-366-9565 (New York) and +44 (0) 203 427 0598 (London). The replay passcode is 9524315.
About GasLog Ltd.
GasLog is an international owner, operator and manager of LNG carriers. GasLog’s fleet consists of 10 wholly-owned LNG carriers, including two ships delivered in 2010 and eight LNG carriers on order. In addition, GasLog currently has 12 LNG carriers operating under its technical management for external customers. GasLog’s principal executive offices are at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco. GasLog’s website is http://www.gaslogltd.com.
Forward Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Risks and uncertainties include, but are not limited to, general LNG and LNG shipping market conditions and trends, including charter rates, ship values, factors affecting supply and demand and opportunities for the profitable operations of LNG carriers; our continued ability to enter into multi-year time charters with our customers; our contracted charter revenue; our customers’ performance of their obligations under our time charters and other contracts; the effect of the worldwide economic slowdown; future operating or financial results and future revenue and expenses; our future financial condition and liquidity; our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, and funding by banks of their financial commitments; future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses; our ability to enter into shipbuilding contracts for newbuilding ships and our expectations about the availability of existing LNG carriers to purchase, as well as our ability to consummate any such acquisitions; our expectations about the time that it may take to construct and deliver newbuilding ships and the useful lives of our ships; number of off-hire days, drydocking requirements and insurance costs; our anticipated general and administrative expenses; fluctuations in currencies and interest rates; our ability to maintain long-term relationships with major energy companies; expiration dates and extensions of charters; our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under multi-year charter commitments; environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities; risks inherent in ship operation, including the discharge of pollutants; availability of skilled labor, ship crews and management; potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists; and potential liability from future litigation. A further list and description of these risks, uncertainties and other factors can be found in our Prospectus filed April 2, 2012. Copies of the Prospectus, as well as subsequent filings, are available online at www.sec.gov or on request from us. We do not undertake to update any forward-looking statements as a result of new information or future events or developments.
|
EXHIBIT I – Unaudited Interim Financial Information
Unaudited condensed consolidated statements of financial
position
As of December 31, 2011 and September 30, 2012 (All amounts expressed in U.S. Dollars) |
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| December 31, 2011 | September 30, 2012 | ||||||||||||||||||||
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| Assets | |||||||||||||||||||||
| Non-current assets | |||||||||||||||||||||
| Goodwill | 9,511,140 | 9,511,140 | |||||||||||||||||||
| Investment in associate | 6,528,087 | 7,289,240 | |||||||||||||||||||
| Deferred financing costs | 14,289,327 | 21,850,352 | |||||||||||||||||||
| Other non-current assets | 871,769 | 3,845,765 | |||||||||||||||||||
| Tangible fixed assets | 438,902,029 | 430,150,396 | |||||||||||||||||||
| Vessels under construction | 109,069,864 | 196,072,310 | |||||||||||||||||||
| Total non-current assets | 579,172,216 | 668,719,203 | |||||||||||||||||||
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| Current assets | |||||||||||||||||||||
| Trade and other receivables | 2,682,820 | 2,192,364 | |||||||||||||||||||
| Dividends receivable and due from related parties | 1,273,796 | 391,916 | |||||||||||||||||||
| Inventories | 425,266 | 493,441 | |||||||||||||||||||
| Prepayments and other current assets | 3,365,697 | 588,390 | |||||||||||||||||||
| Short-term investments | — | 211,799,320 | |||||||||||||||||||
| Cash and cash equivalents | 20,092,909 | 26,736,619 | |||||||||||||||||||
| Total current assets | 27,840,488 | 242,202,050 | |||||||||||||||||||
| Total assets | 607,012,704 | 910,921,253 | |||||||||||||||||||
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| Equity and liabilities | |||||||||||||||||||||
| Equity | |||||||||||||||||||||
| Share capital | 391,015 | 628,632 | |||||||||||||||||||
| Contributed surplus | 300,715,852 | 628,918,944 | |||||||||||||||||||
| Reserves | 1,744,417 | (12,217,449 | ) | ||||||||||||||||||
| Accumulated deficit | (12,437,763 | ) | (10,894,832 | ) | |||||||||||||||||
| Equity attributable to owners of the Group | 290,413,521 | 606,435,295 | |||||||||||||||||||
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| Current liabilities | |||||||||||||||||||||
| Trade accounts payable | 1,704,915 | 1,011,813 | |||||||||||||||||||
| Ship management creditors | 1,102,272 | 12,510 | |||||||||||||||||||
| Amounts due to related parties | 114,069 | 98,112 | |||||||||||||||||||
| Derivative financial instruments | 3,451,080 | 5,900,068 | |||||||||||||||||||
| Other payables and accruals | 18,541,023 | 7,186,825 | |||||||||||||||||||
| Loans—current portion | 24,276,813 | 23,999,339 | |||||||||||||||||||
| Total current liabilities | 49,190,172 | 38,208,667 | |||||||||||||||||||
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| Non-current liabilities | |||||||||||||||||||||
| Derivative financial instruments | 5,101,234 | 26,774,911 | |||||||||||||||||||
| Loans—non-current portion | 256,788,206 | 236,985,432 | |||||||||||||||||||
| Other non-current liabilities | 5,519,571 | 2,516,948 | |||||||||||||||||||
| Total non-current liabilities | 267,409,011 | 266,277,291 | |||||||||||||||||||
| Total equity and liabilities | 607,012,704 | 910,921,253 | |||||||||||||||||||
|
Unaudited condensed consolidated statements of income
For the three months and nine months ended September 30, 2011
and 2012 (All amounts expressed in U.S. Dollars) |
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| For the three months ended | For the nine months ended | |||||||||||||||||||||||||||||
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September 30, 2011 |
September 30, 2012 |
September 30, 2011 |
September 30, 2012 |
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| Revenues | 15,918,352 | 16,935,004 | 48,674,885 | 50,244,406 | ||||||||||||||||||||||||||
| Vessel operating and supervision costs | (3,069,622 | ) | (3,629,299 | ) | (9,181,577 | ) | (10,342,516 | ) | ||||||||||||||||||||||
| Depreciation of fixed assets | (3,206,858 | ) | (3,288,480 | ) | (9,612,638 | ) | (9,773,311 | ) | ||||||||||||||||||||||
| General and administrative expenses | (2,974,548 | ) | (2,938,036 | ) | (9,729,017 | ) | (14,431,881 | ) | ||||||||||||||||||||||
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| Profit from operations | 6,667,324 | 7,079,189 | 20,151,653 | 15,696,698 | ||||||||||||||||||||||||||
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| Financial costs | (2,262,006 | ) | (2,892,817 | ) | (6,947,506 | ) | (8,846,897 | ) | ||||||||||||||||||||||
| Financial income | 12,265 | 481,265 | 41,170 | 925,124 | ||||||||||||||||||||||||||
| Loss on interest rate swaps, net | (232,639 | ) | (1,746,781 | ) | (232,639 | ) | (6,993,147 | ) | ||||||||||||||||||||||
| Share of profit of associate | 361,845 | 3,138 | 1,019,194 | 761,153 | ||||||||||||||||||||||||||
| Gain on disposal of subsidiaries | 24,786 | — | 24,786 | — | ||||||||||||||||||||||||||
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| Total other expense | (2,095,749 | ) | (4,155,195 | ) | (6,094,995 | ) | (14,153,767 | ) | ||||||||||||||||||||||
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| Profit for the period | 4,571,575 | 2,923,994 | 14,056,658 | 1,542,931 | ||||||||||||||||||||||||||
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| Attributable to: | ||||||||||||||||||||||||||||||
| Owners of the Group | 4,571,575 | 2,923,994 | 14,373,631 | 1,542,931 | ||||||||||||||||||||||||||
| Non-controlling interest | — | — | (316,973 | ) | — | |||||||||||||||||||||||||
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| 4,571,575 | 2,923,994 | 14,056,658 | 1,542,931 | |||||||||||||||||||||||||||
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| Earnings per share – basic and diluted | 0.12 | 0.05 | 0.37 | 0.03 | ||||||||||||||||||||||||||
|
Unaudited condensed consolidated statements of cash flow
For the nine months ended September 30, 2011 and 2012 (All amounts expressed in U.S. Dollars) |
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| For the nine months ended | |||||||||||||||||
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September 30, 2011 |
September 30, 2012 |
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| Cash flows from operating activities: | |||||||||||||||||
| Profit for the period | 14,056,658 | 1,542,931 | |||||||||||||||
| Adjustments for: | |||||||||||||||||
| Depreciation of fixed assets | 9,612,638 | 9,773,311 | |||||||||||||||
| Share of profit of associate | (1,019,194 | ) | (761,153 | ) | |||||||||||||
| Financial income | (41,170 | ) | (925,124 | ) | |||||||||||||
| Financial costs | 6,947,506 | 8,846,897 | |||||||||||||||
| Unrealized foreign exchange losses on cash and cash equivalents and short-term investments | — | 176,657 | |||||||||||||||
| Loss on interest rate swaps, net | 232,639 | 6,993,147 | |||||||||||||||
| Gain on disposal of subsidiaries | (24,786 | ) | — | ||||||||||||||
| Non-cash employee benefits | 3,199,782 | 3,481,090 | |||||||||||||||
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| 32,964,073 | 29,127,756 | ||||||||||||||||
| Movements in working capital | (4,378,318) | (8,260,438 | ) | ||||||||||||||
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| Cash provided by operations | 28,585,755 | 20,867,318 | |||||||||||||||
| Interest paid | (6,439,928 | ) | (8,466,013 | ) | |||||||||||||
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| Net cash from operating activities | 22,145,827 | 12,401,305 | |||||||||||||||
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| Cash flows from investing activities: | |||||||||||||||||
| Dividends received from associate | 1,086,787 | 950,000 | |||||||||||||||
| Return of investment from associate | 500,000 | — | |||||||||||||||
| Payments for tangible fixed assets and vessels under construction | (68,536,992 | ) | (89,933,799 | ) | |||||||||||||
| Increase in short-term investments | — | (211,347,592 | ) | ||||||||||||||
| Cash transferred on deconsolidation | (56,426 | ) | — | ||||||||||||||
| Financial income received | 41,170 | 181,109 | |||||||||||||||
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| Net cash used in investing activities | (66,965,461 | ) | (300,150,282 | ) | |||||||||||||
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| Cash flows from financing activities: | |||||||||||||||||
| Bank loan repayment | (22,947,202 | ) | (20,554,071 | ) | |||||||||||||
| Payment of loan issuance costs | (840,000 | ) | (13,827,574 | ) | |||||||||||||
| Payments of IPO costs | (42,239 | ) | (3,515,267 | ) | |||||||||||||
| Proceeds from sale of common shares (net of underwriting discounts and commissions) | — | 314,255,049 | |||||||||||||||
| Dividend paid | (772,000 | ) | — | ||||||||||||||
| Capital contributions | 60,926,075 | 18,662,935 | |||||||||||||||
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| Net cash from financing activities | 36,324,634 | 295,021,072 | |||||||||||||||
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| Effects of exchange rate changes on cash and cash equivalents | — | (628,385 | ) | ||||||||||||||
| (Decrease)/increase in cash and cash equivalents | (8,495,000 | ) | 6,643,710 | ||||||||||||||
| Cash and cash equivalents, beginning of the period | 23,270,100 | 20,092,909 | |||||||||||||||
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| Cash and cash equivalents, end of the period | 14,775,100 | 26,736,619 | |||||||||||||||
EXHIBIT II
Non-GAAP Financial Measures:
EBITDA represents earnings before interest income and expense, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA before loss on interest rate swaps and foreign exchange gains/losses. Adjusted Profit/(loss) and Adjusted EPS represent earnings and earnings per share, respectively, before loss on interest rate swaps and foreign exchange gains/losses. EBITDA, Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS, which are non-GAAP financial measures, are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. We believe that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA, Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our ongoing financial and operational strength in assessing whether to continue to hold our common shares. This increased comparability is achieved by excluding the potentially disparate effects between periods of, in the case of EBITDA and Adjusted EBITDA, interest, taxes, depreciation and amortization and, and in the case of Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS, loss on interest rate swaps and foreign exchange gains/losses, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect results of operations between periods.
EBITDA, Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS have limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, profit, profit from operations, earnings per share or any other measure of financial performance presented in accordance with IFRS. These non-GAAP financial measures exclude some, but not all, items that affect profit, and these measures may vary among companies. In evaluating Adjusted EBITDA, Adjusted Profit/(loss) 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. Our presentation of Adjusted EBITDA, Adjusted Profit/(loss) and Adjusted EPS should not be construed as an inference that our future results will be unaffected by the excluded items. Therefore, the non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries.
Reconciliation of EBITDA and Adjusted EBITDA to Profit/(loss) for the
three month periods ended:
(All amounts expressed in U.S.
Dollars)
| September 30, 2012 | ||||||||||||||||||||||||||
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Vessel Ownership Segment |
Vessel Management segment |
Unallocated/
Eliminations |
Total | |||||||||||||||||||||||
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| Profit/(loss) for the period | 3,801,910 | 676,020 | (1,553,936 | ) | 2,923,994 | |||||||||||||||||||||
| Depreciation of fixed assets | 3,172,789 | 80,528 | 35,163 | 3,288,480 | ||||||||||||||||||||||
| Financial costs | 2,874,330 | 13,889 | 4,598 | 2,892,817 | ||||||||||||||||||||||
| Financial income | (56,241 | ) | — | (425,024 | ) | (481,265) | ||||||||||||||||||||
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| EBITDA | 9,792,788 | 770,437 | (1,939,199 | ) | 8,624,026 | |||||||||||||||||||||
| Loss on interest rate swaps, net | 1,746,781 | — | — | 1,746,781 | ||||||||||||||||||||||
| Foreign exchange gains | (300,275 | ) | — | (325,516 | ) | (625,791) | ||||||||||||||||||||
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| Adjusted EBITDA | 11,239,294 | 770,437 | (2,264,715 | ) | 9,745,016 | |||||||||||||||||||||
| September 30, 2011 | |||||||||||||||||||||||||||||
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Vessel Ownership Segment |
Vessel Management segment |
Unallocated/
Eliminations |
Total | ||||||||||||||||||||||||||
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| Profit/(loss) for the period | 6,102,615 | 41,630 | (1,572,670 | ) | 4,571,575 | ||||||||||||||||||||||||
| Depreciation of fixed assets | 3,153,104 | 36,994 | 16,760 | 3,206,858 | |||||||||||||||||||||||||
| Financial costs | 2,249,640 | 9,774 | 2,592 | 2,262,006 | |||||||||||||||||||||||||
| Financial income | (8,016 | ) | (4,249 | ) | — |
(12,265) |
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| EBITDA | 11,497,343 | 84,149 | (1,553,318 | ) | 10,028,174 | ||||||||||||||||||||||||
| Loss on interest rate swaps, net | 232,639 | — | — | 232,639 | |||||||||||||||||||||||||
| Foreign exchange (gains)/losses | (26,070 | ) | — | 35,962 | 9,892 | ||||||||||||||||||||||||
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| Adjusted EBITDA | 11,703,912 | 84,149 | (1,517,356 | ) | 10,270,705 | ||||||||||||||||||||||||
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Reconciliation of Adjusted Profit/(loss) to Profit/(loss) for
the three month periods ended: (All amounts expressed in U.S. Dollars) |
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| September 30, 2012 | ||||||||||||||||||
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Vessel Ownership
Segment |
Vessel Management
segment |
Unallocated/
Eliminations |
Total | |||||||||||||||
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| Profit/(loss) for the period | 3,801,910 | 676,020 | (1,553,936 | ) | 2,923,994 | |||||||||||||
| Loss on interest rate swaps, net | 1,746,781 | — | — | 1,746,781 | ||||||||||||||
| Foreign exchange gains | (300,275 | ) | — | (325,516 | ) | (625,791 | ) | |||||||||||
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Adjusted Profit/(loss) attributable to owners of the Group |
5,248,416 | 676,020 | (1,879,452 | ) | 4,044,984 | |||||||||||||
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| September 30, 2011 | ||||||||||||||||||
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Vessel Ownership
Segment |
Vessel Management
segment |
Unallocated/
Eliminations |
Total | |||||||||||||||
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| Profit/(loss) for the period | 6,102,615 | 41,630 | (1,572,670 | ) | 4,571,575 | |||||||||||||
| Loss on interest rate swaps, net | 232,639 | — | — | 232,639 | ||||||||||||||
| Foreign exchange (gains)/losses | (26,070 | ) | — | 35,962 | 9,892 | |||||||||||||
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Adjusted Profit/(loss) attributable to owners of the Group |
6,309,184 | 41,630 | (1,536,708 | ) | 4,814,106 | |||||||||||||
Reconciliation of Adjusted Earnings Per Share to Earnings Per Share
for the three month periods ended:
(All amounts expressed in
U.S. Dollars)
| September 30, 2011 | September 30, 2012 | ||||||
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| Profit for the period attributable to owners of the Group | 4,571,575 | 2,923,994 | |||||
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Less: Earnings allocated to manager shares and subsidiary manager shares |
379,777 | — | |||||
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Earnings attributable to the owners of common shares used in the calculation of basic EPS |
4,191,798 | 2,923,994 | |||||
| Weighted average number of shares outstanding | 35,853,200 | 62,863,166 | |||||
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| EPS | 0.12 | 0.05 | |||||
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| Adjusted profit for the period attributable to owners of the Group | 4,814,106 | 4,044,984 | |||||
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Less: Adjusted earnings allocated to manager shares and subsidiary manager shares |
399,924 | — | |||||
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Adjusted earnings attributable to the owners of common shares used in the calculation of basic EPS |
4,414,182 | 4,044,984 | |||||
| Weighted average number of shares outstanding | 35,853,200 | 62,863,166 | |||||
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| Adjusted EPS | 0.12 | 0.06 | |||||