Press Releases

Ardmore Shipping Corporation Announces Financial Results For The Three And Nine Months Ended September 30, 2016

HAMILTON, Bermuda, Nov. 2, 2016 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company" or "we") today announced results for the three and nine months ended September 30, 2016.

Highlights

  • Reported a loss from continuing operations of $1.8 million for the three months ended September 30, 2016, or $0.05 basic and diluted loss per share, as compared to a profit from continuing operations of $13.6 million, or $0.52 basic and diluted earnings per share, for the three months ended September 30, 2015. The Company reported adjusted EBITDA (see Non-GAAP Measures section below) of $10.2 million for the three months ended September 30, 2016, as compared to $24.5 million for the three months ended September 30, 2015.
  • Reported a net loss of $4.8 million for the three months ended September 30, 2016, or $0.14 basic and diluted loss per share, as compared to a net profit of $13.6 million, or $0.52 basic and diluted earnings per share, for the three months ended September 30, 2015, reflecting a loss on sale of the Ardmore Centurion, as well as a loss from continuing operations. The Company reported EBITDA (see Non-GAAP Measures section below) of $7.2 million for the three months ended September 30, 2016, as compared to $24.5 million for the three months ended September 30, 2015. 
  • Delivered a solid chartering performance with spot and pool MR tankers earning an average of $15,944 per day year to date and $13,284 per day for the quarter ended September 30, 2016.
  • Took delivery of five of the six vessels we agreed to acquire in June 2016. The final vessel is expected to deliver in early November. All six vessels are 49,500 Dwt Eco-Design IMO 2/3 MR product / chemical tankers constructed by STX Offshore and Shipbuilding Co. Ltd. in Korea.
  • Completed debt financing for the recent acquisition of six vessels. Four of the vessels are being financed through a new $71.3 million senior debt facility with ABN AMRO. The remaining two vessels have been added to the existing credit facility with ABN AMRO and DVB Bank, which was completed in early 2016; the facility has been upsized by $36.6 million and NIBC Bank has agreed to join as an additional lender under the facility.
  • Agreed terms for the sale of the 29,000 Dwt product / chemical tanker the Ardmore Centurion for $15.7 million. The vessel subsequently delivered to the buyers on October 4, 2016.
  • Maintaining a dividend policy of paying out 60% earnings from continuing operations. Consistent with this policy, the Company is not declaring a dividend for the third quarter 2016.

Anthony Gurnee, the Company's Chief Executive Officer, commented:

During the quarter, we continued to operate our fleet at a satisfactory level of performance in spite of a softer charter market. The current market conditions reflect below-average oil trading activity, driven by relative oil price stability and gradual de-stocking of global clean petroleum product inventories, which we expect will continue for the next two to three quarters. Nevertheless, we anticipate an improvement in MR and chemical charter market conditions through the winter months as a result of typical seasonal activity.

In spite of this short-term market action, the underlying fundamentals of the MR tanker sector remain very positive, with secular trends driving underlying tonne-mile demand growth at an estimated rate of 4-5%. According to the IEA, oil consumption continues to grow at 1.2 million bpd, and much of this incremental demand is being met by export-oriented refinery activity, which not only increases volumes of refined products shipped by sea, but also the distance over which those refined products are carried. Meanwhile, ordering activity is almost non-existent and, as a consequence, the orderbook for MR tankers has declined to 5.5% of the existing fleet, its lowest level in at least 20 years, which should result in net fleet growth well below projected demand growth until such time as newbuilding activity increases significantly.

During the third quarter, we completed deliveries for five of the six Eco-Design MR's acquired in July and committed to the opportunistic sale, at a strong relative price, of the Ardmore Centurion, a 2005-built 29,000 Dwt product / chemical tanker, in our ongoing efforts to streamline our fleet profile around core Eco MR product / chemical tanker vessel designs. Following the expected delivery of the final Eco-Design MR in early November, we will have a fleet of 27 Eco MR's with an average age of four years. This fleet expansion represents a 13% increase in revenue days for 2017 and positions Ardmore to take advantage of a strengthening charter market supported by the increasing tension between steady MR demand growth and a declining orderbook.

Summary of Recent and Third Quarter 2016 Events

Fleet

Deliveries

During the quarter, the Company took delivery of five of the six vessels we agreed to acquire in June 2016. The final vessel, the Ardmore Enterprise, is expected to deliver in early November. All six vessels are 49,500 Dwt Eco-Design IMO 2/3 vessels constructed by STX Offshore and Shipbuilding Co. Ltd. in Korea. The vessels delivered to Ardmore on the following dates:

Ardmore Endurance

August 31, 2016

Ardmore Explorer

September 7, 2016

Ardmore Engineer

September 12, 2016

Ardmore Encounter

September 29, 2016

Ardmore Exporter

September 30, 2016

All vessels commenced employment in the spot market following delivery to Ardmore.

Fleet Operations and Employment

The Company has 26 vessels currently in operation, comprising 20 Eco MR tankers ranging from 45,000 Dwt to 49,999 Dwt (14 Eco-Design and six Eco-Mod) and six Eco-Design product / chemical tankers ranging from 25,000 Dwt to 38,000 Dwt. The remaining Eco-Design MR product / chemical tanker acquired in June is expected to deliver in early November.

MR Tankers (45,000 Dwt – 49,999 Dwt)

At the end of the third quarter of 2016, the Company had 19 MR tankers trading in the spot market or in pools, and one MR tanker employed on time charter. The 19 spot or pool trading MR tankers, comprising 13 Eco-Design and six Eco-Mod, earned an average of $13,284 per day. Overall for the quarter, our 14 Eco-Design MR tankers earned $14,769 per day, and our six Eco-Mod MR tankers earned $12,258 per day.

In the fourth quarter of 2016, the Company expects to have 93% of its revenue days for its MR Eco-Design tankers employed in the spot market or in pools. The remaining 7% of revenue days are expected to be employed on time charters at an average rate of $18,500 per day. For its Eco-Mod MR tankers, the Company estimates that all revenue days are expected to be employed in the spot market. As of October 31, 2016, the Company has fixed approximately 35% of its total MR spot revenue days for the fourth quarter at approximately $12,000 per day.

Product / Chemical Tankers (IMO 2: 25,000 Dwt – 37,800 Dwt)

At the end of the third quarter of 2016, the Company had seven IMO 2 product / chemical tankers in operation (six Eco-Design and one Eco-Mod), five of which were trading spot or in pools and two of which were employed on time charters. During the third quarter of 2016, across all employment types, the Company's six Eco-Design product / chemical vessels earned an average daily rate of $14,432 per day, and the Eco-Mod product / chemical vessel earned an average daily rate of $11,855 per day.

For the fourth quarter of 2016, the Company expects to have approximately 81% of revenue days for the Eco-Design product / chemical tankers employed in the spot market or a pool. The remaining 19% of revenue days are expected to be covered by time charter employment at an average rate of $16,350 per day. The one Eco-Mod product / chemical tanker was sold and delivered to the buyer on October 4, 2016.

Drydocking

The Company had 14 drydock days in the third quarter of 2016. Ardmore does not have any scheduled drydock days for the remainder of 2016.

Sale of Ardmore Centurion

In September 2016, Ardmore agreed terms for the sale of the Ardmore Centurion. The sale price for the vessel was $15.7 million and the vessel delivered to the buyers on October 4, 2016.

Dividend

Based on the Company's policy of paying out dividends equal to 60% of earnings from continuing operations, the Company's Board of Directors has not declared a dividend for the quarter ended September 30, 2016, in which the Company experienced a loss from continuing operations of $1.8 million. The Company has paid a total of $0.71 per share over the five quarters since initiating a constant payout ratio dividend policy, as compared to $0.50 paid in the prior five-quarter period under a fixed dividend policy.

The Company's Board of Directors reaffirmed its intention to maintain a policy of paying out dividends equal to 60% of earnings from continuing operations moving forward. Earnings from continuing operations is defined as earnings per share ("EPS") reported under US GAAP, as adjusted for unrealized and realized gains and losses and extraordinary items.

Results for the Three Months Ended September 30, 2016 and 2015

The Company reported a net loss of $4.8 million, or $0.14 basic and diluted earnings per share, for the three months ended September 30, 2016, as compared to a net profit of $13.6 million, or $0.52 basic and diluted earnings per share, for the three months ended September 30, 2015. For the three months ended September 30, 2016, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $7.2 million, a decrease of $17.3 million from $24.5 million for the three months ended September 30, 2015.

Results for the Nine Months Ended September 30, 2016 and 2015

The Company reported a net profit of $7.4 million, or $0.26 basic and diluted earnings per share, for the nine months ended September 30, 2016, as compared to $26.6 million, or $1.02 basic and diluted earnings per share, for the nine months ended September 30, 2015. For the nine months ended September 30, 2016, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $43.3 million, a decrease of $10.1 million from $53.4 million for the nine months ended September 30, 2015.

Management's Discussion and Analysis of Financial Results for the Three Months Ended September 30, 2016 and 2015

Revenue. Revenue for the three months ended September 30, 2016 was $38.0 million, a decrease of $9.2 million from $47.2 million for the three months ended September 30, 2015.

The average number of owned vessels increased to 22.7 for the three months ended September 30, 2016 from 21.3 for the three months ended September 30, 2015, resulting in revenue days of 2,046 for the three months ended September 30, 2016, as compared to 1,962 for the three months ended September 30, 2015.

We had 11 and 14 vessels employed under time charter and pool arrangements as at September 30, 2016 and September 30, 2015, respectively. Revenue days derived from time charter and pool arrangements were 1,030 for the three months ended September 30, 2016, as compared to 1,227 for the three months ended September 30, 2015. The decrease in revenue days in time charter and pool arrangements resulted in a decrease in revenue of $3.5 million, while lower charter rates for the quarter ended September 30, 2016 resulted in a decrease in revenue of $3.0 million.

We had 16 and eight vessels employed directly in the spot market as at September 30, 2016 and September 30, 2015, respectively. For spot chartering arrangements, we had 1,016 revenue days for the three months ended September 30, 2016, as compared to 735 for the three months ended September 30, 2015. This increase in revenue days derived from spot chartering arrangements resulted in an increase in revenue of $9.6 million, offset by a $12.2 million decrease in spot market revenue related to declining market conditions.

For vessels employed directly in the spot market, revenue is recognized on a gross freight basis, while under time chartering and pool arrangements, the charterer typically pays voyage expenses and revenue is recognized on a net basis.

Commissions and Voyage Related Costs. Commissions and voyage related costs were $10.0 million for the three months ended September 30, 2016, an increase of $2.0 million from $8.0 million for the three months ended September 30, 2015.

Revenue days increased to 2,046 for the three months ended September 30, 2016, as compared to 1,962 for the three months ended September 30, 2015. For spot chartering arrangements, we had 1,016 revenue days for the three months ended September 30, 2016, as compared to 735 for the three months ended September 30, 2015. This increase in revenue days results in an increase in commissions and voyage related expenses of $2.0 million. In direct spot employment, all voyage expenses are borne by us as opposed to the charterer, while under time chartering and pool arrangements, the charterer typically pays voyage expenses.

TCE Rate. The average TCE rate for our fleet was $13,889 per day for the three months ended September 30, 2016, decreasing by $6,311 per day from $20,200 per day for the three months ended September 30, 2015.

Vessel Operating Expenses. Vessel operating expenses were $13.7 million for the three months ended September 30, 2016, an increase of $1.8 million from $11.9 million for the three months ended September 30, 2015. This increase is primarily due to an increase in the number of vessels in operation for the three months ended September 30, 2016. Due to the nature of this expenditure, vessel operating expenses are prone to fluctuations between periods. Fleet operating costs per day, including technical management fees, were $6,584 for the three months ended September 30, 2016, as compared to $6,119 for the three months ended September 30, 2015.

Depreciation. Depreciation expense for the three months ended September 30, 2016 was $7.3 million, an increase of $0.7 million from $6.6 million for the three months ended September 30, 2015. The increase is primarily due to an increase in the average number of owned vessels to 22.7 for the three months ended September 30, 2016 from 21.3 for the three months ended September 30, 2015.

Amortization of Deferred Drydock Expenditure. Amortization of deferred drydock expenditure for the three months ended September 30, 2016 was $0.8 million, an increase of $0.4 million from $0.4 million for the three months ended September 30, 2015. The capitalized costs of drydockings for a given vessel are depreciated on a straight line basis to the next scheduled drydocking of the vessel.

General and Administrative Expenses. General and administrative expenses for the three months ended September 30, 2016 were $4.0 million, as compared to $2.8 million for the three months ended September 30, 2015. The increase primarily reflects additional corporate and commercial costs associated with operating a larger fleet in the spot market of $0.9 million. Average headcount increased to 35 for the three months ended September 30, 2016 from 26 for the three months ended September 30, 2015. Professional fees increased by $0.3 million during the three months ended September 30, 2016, primarily as a consequence of transactional costs associated with vessels and financings.

Interest Expense and Finance Costs. Interest expense and finance costs (which include loan interest, capital lease interest, and amortization of deferred financing fees, and are net of capitalized interest) for the three months ended September 30, 2016 were $3.9 million, as compared to $3.8 million for the three months ended September 30, 2015. Cash interest expense decreased by $0.3 million to $3.3 million for the three months ended September 30, 2016 from $3.6 million for the three months ended September 30, 2015. This is explained by a reduction in the interest expense following the refinancing of debt completed during the first quarter of 2016 in addition to the sale of the Ardmore Calypso and Ardmore Capella. Capitalized interest, which relates to vessels under construction, was nil for the three months ended September 30, 2016, as compared to $0.3 million for the three months ended September 30, 2015, as there were no vessels under construction during the three months ended September 30, 2016. Amortization of deferred financing charges for the three months ended September 30, 2016 was $0.6 million, as compared to $0.5 million for the three months ended September 30, 2015.

Liquidity

As of September 30, 2016, the Company had $53.0 million (December 31, 2015: $40.1 million) available in cash and cash equivalents. The following debt and capital lease liabilities (net of deferred finance fees) were outstanding as of the dates indicated:

 


As of


Sept 30, 2016

Dec 31, 2015

Debt

457,277,918

388,242,404

Capital Leases

-

26,771,911

Total

457,277,918

415,014,315

 

Conference Call

The Company plans to have a conference call on November 2, 2016 at 10:00 a.m. Eastern Time to discuss its results for the quarter ended September 30, 2016. All interested parties are invited to listen to the live conference call and slide presentation by choosing from the following options:

  1. By dialing 844-492-3728 (U.S.) or 412-542-4189 (International) and referencing "Ardmore Shipping."
  2. By accessing the live webcast at Ardmore Shipping's website at www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, an audio replay of the call will be available through November 9, 2016 at 877-344-7529 or 412-317-0088. Enter the passcode 10095849 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore owns and operates a fleet of MR product / chemical tankers ranging from 25,000 to 50,300 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of tankers.

Ardmore's core strategy is to develop a modern, high-quality fleet of product / chemical tankers, building key long-term commercial relationships and maintaining its cost advantage in assets, operations and overhead, while creating significant synergies and economies of scale as the Company grows. Ardmore provides its services to customers through voyage charters, commercial pools, and time charters, and enjoys close working relationships with key commercial and technical management partners.

 

 

Ardmore Shipping Corporation

Unaudited Condensed Consolidated Balance Sheet

(Expressed in U.S. dollars, unless otherwise stated)






As at

ASSETS




Sept 30, 2016


Dec 31, 2015

Current assets







Vessels held for sale




15,195,595


37,083,985

Cash and cash equivalents




52,970,481


40,109,382

Receivables, trade




21,469,853


26,189,316

Working capital advances




3,100,000


3,475,000

Prepayments




1,069,560


1,042,359

Advances and deposits




6,482,360


3,511,872

Other receivables




23,035


23,953

Inventories




6,588,014


3,969,483

Total current assets




106,898,898


115,405,350








Non-current assets







Vessels and vessel equipment, net




765,434,782


658,628,933

Deferred drydock expenditure, net




3,699,130


3,730,374

Deposit for vessel acquisition




2,775,000


-

Leasehold improvements




493,100


-

Other non-current assets, net




635,588


432,951

Total non-current assets




773,037,600


662,792,258








TOTAL ASSETS




879,936,498


778,197,608








LIABILITIES AND EQUITY







Current liabilities







Payables, trade




11,238,756


12,482,540

Charter revenue received in advance




1,609,367


1,192,317

Other payables




111,799


144,932

Amounts due to related parties




-


-

Accrued interest on loans




1,901,587


1,752,226

Current portion of long-term debt




49,521,393


27,014,500

Current portion of capital lease obligations




-


26,771,911

Total current liabilities




64,382,902


69,358,426









Non-current liabilities







Non-current portion of long-term debt




407,756,525


361,227,904

Non-current portion of capital lease obligations




-


-

Total non-current liabilities




407,756,525


361,227,904








Equity







Share capital




340,613


263,297

Additional paid in capital




405,118,751


338,226,370

Treasury stock




(4,272,477)


(1,278,546)

Accumulated surplus




6,610,184


10,400,157

Total equity




407,797,071


347,611,278








TOTAL LIABILITIES AND EQUITY




879,963,498


778,197,608










 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Operations

(Expressed in U.S. dollars, unless otherwise stated)




Three months ended


Nine months ended



Sept 30, 2016


Sept 30, 2015


Sept 30, 2016


Sept 30, 2015

REVENUE









Revenue


37,969,400


47,182,310


121,224,907


116,110,860










OPERATING EXPENSES









Commissions and voyage related costs


10,011,629


7,959,724


23,762,818


22,626,960

Vessel operating expenses


13,739,022


11,932,106


40,290,408


32,410,042

Depreciation


7,340,499


6,629,516


21,578,136


17,252,021

Amortization of deferred dry dock expenditure


771,282


447,775


2,050,091


1,617,799

General and administrative expenses


4,024,289


2,792,312


11,266,648


7,635,934

Total operating expenses


35,886,721


29,761,433


98,948,101


81,542,756










Profit from operations


2,082,679


17,420,877


22,276,806


34,568,104










Interest expense and finance costs


(3,901,112)


(3,806,461)


(12,294,821)


(7,945,689)

Interest income


66,174


4,665


107,425


10,688

Gain on disposal of vessels


-


-


451,962


-

Loss on asset held for sale


(3,028,416)


-


(3,028,416)


-










Profit / (loss) before taxes


(4,780,675)


13,619,081


7,512,956


26,633,103










Income tax


(19,250)


(17,102)


(77,250)


(43,688)










Net profit / (loss)


(4,799,925)


13,601,979


7,435,706


26,589,415










Earnings / (loss) per share from continuing operations(1)


(0.05)


0.52


0.35


1.02

Earnings / (loss) per share, basic and diluted


(0.14)


0.52


0.26


1.02

Weighted average number of shares outstanding, basic and diluted


33,518,013


26,079,260


28,988,963


26,025,191










 

(1)

Earnings per share from continuing operations is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section below.

 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Cash Flows

(Expressed in U.S. dollars, unless otherwise stated)






Nine months ended





Sept 30, 2016


Sept 30, 2015

OPERATING ACTIVITIES







Net profit/ (loss)




7,435,706


26,589,415

Non-cash items:







Depreciation




21,578,136


17,252,021

Amortization of deferred dry dock expenditure




2,050,091


1,617,799

Share based compensation




978,672


1,074,474

Loss on disposal of vessels




2,576,454


-

Amortization of deferred finance charges




2,072,562


1,188,100

Changes in operating assets and liabilities:




-


-

Receivables, trade




4,719,464


(16,869,910)

Working capital advances




75,000


(2,475,000)

Prepayments




(27,201)


(997,768)

Advances and deposits




(2,970,488)


474,503

Other receivables




918


590,603

Inventories




(2,618,531)


(1,641,978)

Payables, trade




(1,243,784)


2,397,572

Charter revenue received in advance




417,050


318,641

Other payables




(33,133)


(404,941)

Accrued interest on loans




147,001


607,451

Deferred dry dock expenditure




(2,899,096)


(1,734,956)

Net cash provided by operating activities




32,558,821


27,986,026








INVESTING ACTIVITIES







Payments for acquisition of vessels and equipment




(145,533,463)


(168,991,746)

Payments for vessels under construction




-


(23,092,463)

Net proceeds from sale of vessels




37,612,414


-

Deposit for vessel acquisition




(2,775,000)


-

Payments for leasehold improvements




(493,100)


-

Payments for other non-current assets




(345,993)


(283,612)

Net cash provided by / (used in) investing activities




(111,535,142)


(192,367,821)








FINANCING ACTIVITIES







Proceeds from long-term debt




92,636,000


174,727,500

Repayments of long term debt




(19,698,260)


(17,909,450)

Repayments of capital leases




(27,097,348)


-

Payments for deferred finance charges




(5,774,351)


(1,257,124)

Net proceeds from equity offering




64,119,332


(1,570,795)

Payments for treasury stock




(2,993,931)


-

Payment of dividend




(9,354,022)


(6,181,741)

Net cash provided by financing activities




91,837,420


147,808,390








Net increase / (decrease) in cash and cash equivalents




12,861,099


(16,573,405)








Cash and cash equivalents at the beginning of the period




40,109,382


59,879,596








Cash and cash equivalents at the end of the period




52,970,481


43,306,191








 

 

Ardmore Shipping Corporation

Unaudited Other Operating Data

(Expressed in U.S. dollars, unless otherwise stated)




Three months ended


Nine months ended



 Sept 30, 2016


 Sept 30, 2015


        Sept 30, 2016


    Sept 30, 2015

EBITDA (1)


7,166,044


24,498,168


43,328,579


53,437,924










AVERAGE DAILY DATA









Fleet time charter equivalent per day (2)


13,889


20,200


15,748


18,855










Fleet operating costs per day (3)


6,163


5,764


5,962


5,902

Technical management fees per day (4)


421


355


394


359



6,584


6,119


6,356


6,261










MR Tankers Spot & Pool TCE per day (2)


13,284


23,869


15,944


22,941










MR Tankers Eco-Design









TCE per day (2)


14,769


20,544


16,543


19,869

Vessel operating costs per day (5)


6,525


5,704


6,113


6,042










MR Tankers Eco-Mod









TCE per day (2)


12,258


24,625


15,141


21,312

Vessel operating costs per day (5)


6,676


6,837


6,563


6,654










Prod/Chem Tankers Eco-Design (25k - 38k Dwt)









TCE per day (2)


14,432


18,139


16,362


17,362

Vessel operating costs per day (5)


6,240


5,856


6,195


5,896










Prod/Chem Tankers Eco-Mod (17k - 29k Dwt)









TCE per day (2)


11,855


13,843


11,832


13,485

Vessel operating costs per day (5)


5,745


6,142


6,526


6,350










FLEET









Upgrades and enhancements expensed


87,993


-


448,817


675,025










Average number of owned operating vessels


22.7


21.3


23.1


18.6

 

(1)

EBITDA is a non-GAAP measure and is defined and reconciled to the most directly comparable GAAP measure under the "Non-GAAP Measures" section below.

(2)

Time Charter Equivalent ("TCE") daily rate is the net charter rate or net pool rate, as applicable, per revenue day plus Communication, Victualing and Entertainment Income ("CVE"). Revenue days are the total number of calendar days the vessels are in our possession less off-hire days generally associated with drydocking or repairs. For vessels employed on voyage charters, TCE is the net rate after deducting voyage costs incurred, including all commissions and pool administration fees.

(3)

Fleet operating costs per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication costs. They do not include additional costs related to upgrading or enhancement of the vessels that are not capitalized.

(4)

Technical management fees are fees paid to third-party technical managers.

(5)

Vessel operating costs per day include technical management fees.

 

 

Ardmore Shipping Corporation

Fleet List as at October 31, 2016


Vessel Name

Type

Dwt Tonnes

IMO

Built

Country

Flag

Specification

Ardmore Sevaliant

Product/Chemical

49,998

2/3

Feb-13

Korea

MI

Eco-design

Ardmore Seaventure

Product/Chemical

49,998

2/3

Jun-13

Korea

MI

Eco-design

Ardmore Seavantage

Product/Chemical

49,997

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Seavanguard

Product/Chemical

49,998

2/3

Feb-14

Korea

MI

Eco-design

Ardmore Sealion

Product/Chemical

49,999

2/3

May-15

Korea

MI

Eco-design

Ardmore Seafox

Product/Chemical

49,999

2/3

Jun-15

Korea

MI

Eco-design

Ardmore Seawolf

Product/Chemical

49,999

2/3

Aug-15

Korea

MI

Eco-design

Ardmore Seahawk

Product/Chemical

49,999

2/3

Nov-15

Korea

MI

Eco-design

Ardmore Endeavour

Product/Chemical

49,997

2/3

Jul-13

Korea

MI

Eco-design

Ardmore Enterprise (1)

Product/Chemical

49,453

2/3

Sep-13

Korea

MI

Eco-design

Ardmore Endurance

Product/Chemical

49,466

2/3

Dec-13

Korea

MI

Eco-design

Ardmore Encounter

Product/Chemical

49,478

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Explorer

Product/Chemical

49,494

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Exporter

Product/Chemical

49,466

2/3

Feb-14

Korea

MI

Eco-design

Ardmore Engineer

Product/Chemical

49,420

2/3

Mar-14

Korea

MI

Eco-design

Ardmore Seafarer

Product/Chemical

45,744

3

Aug-04

Japan

MI

Eco-mod

Ardmore Seatrader

Product

47,141

Dec-02

Japan

MI

Eco-mod

Ardmore Seamaster

Product/Chemical

45,840

3

Sep-04

Japan

MI

Eco-mod

Ardmore Seamariner

Product/Chemical

45,726

3

Oct-06

Japan

MI

Eco-mod

Ardmore Sealeader

Product

47,463

Aug-08

Japan

MI

Eco-mod

Ardmore Sealifter

Product

47,472

Jul-08

Japan

MI

Eco-mod

Ardmore Dauntless

Product/Chemical

37,764

2

Feb-15

Korea

MI

Eco-design

Ardmore Defender

Product/Chemical

37,791

2

Feb-15

Korea

MI

Eco-design

Ardmore Cherokee

Product/Chemical

25,215

2

Jan-15

Japan

MI

Eco-design

Ardmore Cheyenne

Product/Chemical

25,217

2

Mar-15

Japan

MI

Eco-design

Ardmore Chinook

Product/Chemical

25,217

2

Jul-15

Japan

MI

Eco-design

Ardmore Chippewa

Product/Chemical

25,217

2

Nov-15

Japan

MI

Eco-design

Total

27

1,202,564






 

(1)

The Ardmore Enterprise is expected to deliver in early November 2016

 

Non-GAAP Measures

This press release describes EBITDA and earnings per share from continuing operations, which are not measures prepared in accordance with U.S. GAAP and are reconciled below. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Earnings per share from continuing operations is defined as earnings per share ("EPS") reported under US GAAP as adjusted for unrealized and realized gains and losses and extraordinary items.

These non-GAAP measures are presented in this press release as the Company believes that it provides investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures do not have a standardized meaning, and are therefore unlikely to be comparable to similar measures presented by other companies. All amounts in the tables below are expressed in U.S. dollars, unless otherwise stated.

 

EBITDA


Three months ended


Nine months ended



Sept 30, 2016


Sept 30, 2015


Sept 30, 2016


Sept 30,2015










Net profit / (loss)


(4,799,925)


13,601,979


7,435,706


26,589,415

Interest income


(66,174)


(4,665)


(107,425)


(10,688)

Interest expense and finance costs


3,901,112


3,806,461


12,294,821


7,945,689

Income tax


19,250


17,102


77,250


43,688

Depreciation


7,340,499


6,629,516


21,578,136


17,252,021

Amortization of deferred dry dock expenditure


771,282


447,775


2,050,091


1,617,799

EBITDA


7,166,044


24,498,168


43,328,579


53,437,924

Gain on disposal of vessels


-


-


451,962


-

Book loss on asset held for sale


(3,028,416)


-


(3,028,416)


-

ADJUSTED EBITDA


10,194,460


24,498,168


45,905,033


53,437,924



EARNINGS FROM CONTINUING OPERATIONS


Three months ended


Nine months ended



Sept 30, 2016


Sept 30, 2015


Sept 30, 2016


Sept 30,2015










Net profit / (loss)


(4,799,925)


13,601,979


7,435,706


26,589,415










Gain on disposal of vessels


-


-


451,962


-

Loss on book value of asset held for sale


(3,028,416)


-


(3,028,416)


-

Adjusted net profit /(loss)


(1,771,509)


13,601,979


10,012,160


26,589,415



















EPS from continuing operations


(0.05)


0.52


0.35


1.02

Weighted average number of shares


33,518,013


26,079,260


28,988,963


26,025,191

 

Forward Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intends", "estimate", "forecast", "plan", "potential", "may", "expect", and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, including, without limitation, Ardmore management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company 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 the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; the market for the Company's vessels; competition in the tanker industry; availability of financing and refinancing; charter counterparty performance; ability to obtain financing and comply with covenants in such financing arrangements; changes in governmental rules and regulations or actions taken by regulatory authorities; general domestic and international political conditions; potential disruption of shipping routes due to accidents, piracy or political events; vessels breakdowns and instances of off-hires; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Investor Relations Enquiries:

Mr. Leon Berman 
The IGB Group 
45 Broadway, Suite 1150 
New York, NY 10006
Tel: 212-477-8438 
Fax: 212-477-8636 
Email: lberman@igbir.com  

Or

Mr. Bryan Degnan
The IGB Group
45 Broadway, Suite 1150 
New York, NY 10006
Tel: 646-673-9701 
Fax: 212-477-8636 
Email: bdegnan@igbir.com

 

SOURCE Ardmore Shipping Corporation


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