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Ardmore Shipping Corporation Announces Financial Results For The Three And Twelve Months Ended December 31, 2017

HAMILTON, Bermuda, Feb. 7, 2018 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company" or "we") today announced results for the three and twelve months ended December 31, 2017.

Highlights and Recent Activity

  • Reported a net loss of $12.5 million for the twelve months ended December 31, 2017, or $0.37 basic and diluted loss per share, as compared to a net profit of $3.7 million, or $0.12 basic and diluted earnings per share, for the twelve months ended December 31, 2016. The Company reported EBITDA (see Non-GAAP Measures section below) of $45.7 million for the twelve months ended December 31, 2017, as compared to $54.2 million for the twelve months ended December 31, 2016. 
  • Reported a net loss of $3.8 million for the three months ended December 31, 2017, or $0.12 basic and diluted loss per share, as compared to a net loss of $3.7 million, or $0.11 basic and diluted loss per share, for the three months ended December 31, 2016. The Company reported EBITDA (see Non-GAAP Measures section below) of $11.0 million for the three months ended December 31, 2017, as compared to $10.9 million for the three months ended December 31, 2016. 
  • Acquired the Ardmore Sealancer, a high-quality 47,500 Dwt MR product tanker constructed at Onomichi Dockyard Co. Ltd. in Japan in 2008. Ardmore took delivery of the vessel on January 23, 2018.
  • Repurchased 1,435,654 of Ardmore's common shares for $11.1 million in the aggregate in November 2017, as part of the GA Holdings LLC secondary offering. Ardmore's repurchase price of $7.72 per share represented a significant discount to net asset value, thereby realizing substantial value for shareholders. Transaction underwriters exercised an over-allotment option in January 2018 resulting in proceeds to the Company of $2.4 million.
  • Spot and pool MR tankers earned an average TCE rate of $12,975 per day for the twelve months ended December 31, 2017, including $12,131 per day in the three months ended December 31, 2017. Eco-Design chemical tankers earned an average of $11,949 per day for the twelve months ended December 31, 2017, including $13,369 per day for the three months ended December 31, 2017.
  • Maintaining our dividend policy of paying out 60% of earnings from continuing operations. Consistent with this policy, the Company is not declaring a dividend for the fourth quarter of 2017.

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

"Ardmore continues to execute on its strategy in spite of soft charter market conditions. Throughout 2017, we achieved a number of key accomplishments that we believe position Ardmore to benefit from long-term trends driving the market for MR product and chemical tankers.

We completed an accretive share purchase of 1.4 million shares in the fourth quarter at a steep discount to net asset value, thus improving per share earnings power. We remain intensely focused on operating performance, cost efficiency and building value through improvements to ROIC. We are pleased to have taken delivery of the Ardmore Sealancer, a high-quality 2008 Japanese-built MR, in January 2018. With its low break-even and attractive price equating to a 30% discount to age-adjusted newbuild, we expect the vessel to boost earnings growth in an improving charter market and build value for shareholders.

The charter market was soft overall for 2017, in spite of some strength during the summer months. Nevertheless, we believe that underlying fundamentals will prevail in 2018; oil demand growth remains firm as the global economy continues to strengthen and oil inventories have declined to more normalized levels, enabling trading activity to resume and re-introducing an additional layer of tonne-mile demand for MRs. Meanwhile, MR supply growth is less than 1%, setting the stage for a potential strong and sustained charter market recovery.

With a strong balance sheet, modern fleet, low cost structure and revenue days set to increase again in 2018, we believe Ardmore is well positioned to take advantage of the anticipated charter market recovery and thus generate strong returns and value accretion for our shareholders."

Summary of Recent and Fourth Quarter 2017 Events

Fleet

Fleet Operations and Employment

The Company has 28 vessels currently in operation including the Ardmore Sealancer, comprising 22 Eco MR tankers ranging from 45,000 Dwt to 49,999 Dwt (15 Eco-Design and seven Eco-Mod) and six Eco-Design IMO 2 product / chemical tankers ranging from 25,000 Dwt to 37,800 Dwt.

MR Tankers (45,000 Dwt – 49,999 Dwt)

At the end of the fourth quarter of 2017, the Company had 21 Eco MR tankers trading in the spot market or in pools. The Eco MR tankers, earned an average of $12,131 per day in the fourth quarter of 2017. Overall for the quarter, our 15 Eco-Design MR tankers earned $12,042 per day, and our six Eco-Mod MR tankers earned $13,163 per day.

In the first quarter of 2018, the Company expects to have all revenue days for its MR Eco-Design and MR Eco-Mod tankers employed in the spot market or in pools. As of February 7, 2018, the Company has fixed approximately 45% of its total MR spot and pool revenue days for the first quarter of 2018 at approximately $13,300 per day.

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

At the end of the fourth quarter of 2017, the Company had six Eco-Design IMO 2 product / chemical tankers in operation, all of which were trading in the spot market or in pools. During the fourth quarter of 2017, across all employment types, the Company's six Eco-Design product / chemical vessels earned an average daily rate of $13,369 per day in the quarter.

In the first quarter of 2018, the Company expects to have all of its revenue days for its Eco-Design IMO 2 product / chemical tankers employed in the spot market or in pools. As of February 7, 2018, the Company has fixed approximately 87% of its Eco-Design IMO 2 product / chemical tankers spot and pool revenue days for the first quarter of 2018 at approximately $12,000 per day.

Drydocking

The Company had 15 drydock days in the fourth quarter of 2017. Ardmore expects 18 scheduled drydock days in the first quarter of 2018.

Vessel Delivery and Financing

On January 23, 2018, Ardmore took delivery of its most recent vessel acquisition, the Ardmore Sealancer, a 2008 MR product tanker built at Onomichi, Japan. Upon delivery, and repositioning, the vessel commenced employment in the spot market. The vessel was partly financed under a Japan operating lease arrangement which was completed on January 30, 2018.

Ardmore completed a new $15 million revolving credit facility in October 2017, further improving its financial flexibility. The total amount drawn down on this facility to date is $11.4 million, resulting in a cash balance as at January 31, 2018 of $44.8 million.

Share Repurchase

In November 2017, Ardmore repurchased 1,435,654 of its own common shares for $11.1 million, in the aggregate, from GA Holdings LLC as part of GA Holdings' secondary offering. The repurchase price of $7.72 per share represented a significant discount to net asset value, thereby realizing substantial value for Ardmore shareholders. To facilitate an orderly execution of the secondary offering, Ardmore granted the underwriter an option to purchase additional shares of its common stock, which option the underwriter exercised in January 2018, for a total of 305,459 shares, resulting in proceeds to the Company of $2.4 million.

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 December 31, 2017, in which the Company reported a loss from continuing operations of $3.8 million. The Company did not pay out dividends for the first three quarters of 2017. The Company paid out a total of $0.27 per share in dividends for the full year 2016. 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 U.S. GAAP, as adjusted for unrealized and realized gains and losses and extraordinary items.

Results for the Three Months Ended December 31, 2017 and 2016

The Company reported a net loss of $3.8 million, or $0.12 basic and diluted loss per share, for the three months ended December 31, 2017, as compared to a net loss of $3.7 million, or $0.11 basic and diluted loss per share, for the three months ended December 31, 2016. For the three months ended December 31, 2017, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $11.0 million, an increase of $0.1 million from $10.9 million for the three months ended December 31, 2016.

Results for the Twelve Months Ended December 31, 2017 and 2016

The Company reported a net loss of $12.5 million, or $0.37 basic and diluted loss per share, for the twelve months ended December 31, 2017, as compared to net profit of $3.7 million, or $0.12 basic and diluted earnings per share, for the twelve months ended December 31, 2016. For the twelve months ended December 31, 2017, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $45.7 million, a decrease of $8.5 million from $54.2 million for the twelve months ended December 31, 2016.

Management's Discussion and Analysis of Financial Results for the Three Months Ended December 31, 2017 and 2016

Revenue. Revenue for the three months ended December 31, 2017 was $47.8 million, an increase of $4.6 million from $43.2 million for the three months ended December 31, 2016.

Our average number of owned vessels remained at 27.0 for the three months ended December 31, 2017, consistent with the three months ended December 31, 2016, resulting in revenue days of 2,438 for the three months ended December 31, 2017, as compared to 2,417 for the three months ended December 31, 2016.

We had 19 and 17 vessels employed directly in the spot market as at December 31, 2017 and December 31, 2016, respectively. For spot chartering, we had 1,704 revenue days for the three months ended December 31, 2017, as compared to 1,465 for the three months ended December 31, 2016. This increase in revenue days derived from spot chartering, resulted in an increase in revenue of $5.0 million, while changes in spot rates resulted in an increase in revenue of $2.7 million.

We had eight and 10 vessels employed under time charter and pool arrangements as at December 31, 2017 and December 31, 2016, respectively. Revenue days derived from time charter and pool arrangements were 734 for the three months ended December 31, 2017, as compared to 952 for the three months ended December 31, 2016. The decrease in revenue days in time charter and pool arrangements resulted in a decrease in revenue of $2.8 million, while a decrease in pool earnings for the quarter ended December 31, 2017 resulted in a decrease in revenue of $0.3 million.

In direct spot employment, all voyage expenses are borne by Ardmore as opposed to the charterer, while under time chartering and pool arrangements, the charterer typically pays voyage expenses.

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 $17.5 million for the three months ended December 31, 2017, an increase of $4.1 million from $13.4 million for the three months ended December 31, 2016. Commissions and voyage related costs increased due to the increased number of spot revenue days for the three months ended December 31, 2017. Revenue days increased to 2,438 for the three months ended December 31, 2017, as compared to 2,417 for the three months ended December 31, 2016. For spot chartering arrangements, we had 1,704 revenue days for the three months ended December 31, 2017, as compared to 1,465 for the three months ended December 31, 2016.

TCE Rate. The average TCE rate for our fleet was $12,583 per day for the three months ended December 31, 2017, an increase of $276 per day from $12,307 per day for the three months ended December 31, 2016. The increase in average TCE rate was the result of higher spot rates for the three months ended December 31, 2017.

Vessel Operating Expenses. Vessel operating expenses were $16.1 million for the three months ended December 31, 2017, consistent with the three months ended December 31, 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 $6,269 for the three months ended December 31, 2017, as compared to $6,531 for the three months ended December 31, 2016.

Depreciation. Depreciation expense for the three months ended December 31, 2017 was $8.6 million, an increase of $0.1 million from $8.5 million for the three months ended December 31, 2016.

Amortization of Deferred Drydock Expenditure. Amortization of deferred drydock expenditure for the three months ended December 31, 2017 was $1.0 million, an increase of $0.3 million from $0.7 million for the three months ended December 31, 2016. 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: Corporate. Corporate-related general and administrative expenses for the three months ended December 31, 2017 were $2.5 million, an increase of $0.5 million from $2.0 million for the three months ended December 31, 2016. This increase reflects an increase in staff costs in the three months ended December 31, 2017 compared to the three months ended December 31, 2016.

General and Administrative Expenses: Commercial and Chartering. Commercial and chartering expenses are the expenses attributable to our chartering and commercial operations departments in connection with our spot trading activities. Commercial and chartering expenses for the three months ended December 31, 2017 were $0.6 million, a decrease of $0.2 million from $0.8 million for the three months ended December 31, 2016. This reduction is due to costs savings realized by bringing our post-fixture operations in house.

Interest Expense and Finance Costs. Interest expense and finance costs include loan interest, capital lease interest, and amortization of deferred financing fees, and are net of capitalized interest. Interest expense and finance costs for the three months ended December 31, 2017 were $5.4 million, consistent with the three months ended December 31, 2016. Cash interest expense for the three months ended December 31, 2017 increased by $0.6 million to $4.7 million, from $4.1 million for the three months ended December 31, 2016. This increase in cash interest expense is attributable to an increased average LIBOR during the three months ended December 31, 2017 compared to the three months ended December 31, 2016, as well as a change in debt structure due to our new capital leases. Amortization of deferred financing charges for the three months ended December 31, 2017 was $0.7 million, as compared to $1.3 million for the three months ended December 31, 2016. The decrease in amortization of deferred financing charges is due to the write-off of deferred finance fees for terminated credit facilities.

Liquidity

As of December 31, 2017, we had $39.5 million (December 31, 2016: $56.0 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


Dec 31, 2017

Dec 31, 2016

Debt

404,423,570

453,213,106

Capital Leases

42,494,019

9,130,650

Total

446,917,589

462,343,756

Conference Call

The Company plans to have a conference call on February 7, 2018 at 10:00 a.m. Eastern Time to discuss its results for the quarter ended December 31, 2017. 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 February 14, 2018 at 877-344-7529 or 412-317-0088. Enter the passcode 10116752 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 50,000 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 mid-size 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




Dec 31, 2017


Dec 31, 2016

Current assets







Cash and cash equivalents




39,457,407


55,952,873

Receivables, trade




27,264,803


23,148,782

Working capital advances




3,100,000


3,300,000

Prepayments




1,412,875


803,003

Advances and deposits




3,015,807


3,136,362

Other receivables




-


82,636

Inventories




9,632,246


7,339,252

Total current assets




83,883,138


93,762,908








Non-current assets







Vessels and vessel equipment, net




751,816,840


785,461,415

Deferred drydock expenditure, net




4,118,168


3,232,293

Deposit for vessel acquisition




1,635,000


-

Leasehold improvements, net




446,532


488,561

Other non-current assets, net




3,640,311


697,546

Total non-current assets




761,656,851


789,879,815








TOTAL ASSETS




845,539,989


883,642,723








LIABILITIES AND EQUITY







Current liabilities







Payables, trade




16,104,399


14,448,043

Charter revenue received in advance




-


507,780

Other payables




6,265


5,354

Accrued interest on loans




1,537,976


2,067,991

Current portion of long-term debt




37,071,548


41,827,480

Current portion of capital lease obligations




3,537,466


159,028

Total current liabilities




58,257,654


59,015,676









Non-current liabilities







Non-current portion of long-term debt




367,352,022


411,385,626

Non-current portion of capital lease obligations




38,956,553


8,971,622

Total non-current liabilities




406,308,575


420,357,248








Equity







Share capital




340,613


340,613

Additional paid in capital




405,549,986


405,279,257

Treasury stock




(15,348,909)


(4,272,477)

Accumulated (deficit) / surplus




(9,567,930)


2,922,406

Total equity




380,973,760


404,269,799








TOTAL LIABILITIES AND EQUITY




845,539,989


883,642,723










 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Operations

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









Three months ended


Twelve months ended




Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


REVENUE










Revenue


47,766,635


43,179,031


195,935,392


164,403,938












OPERATING EXPENSES










Commissions and voyage related costs


17,537,975


13,358,580


72,737,902


37,121,398


Vessel operating expenses


16,104,102


16,109,571


62,890,401


56,399,979


Depreciation


8,645,709


8,513,101


34,271,091


30,091,237


Amortization of deferred drydock expenditure


952,818


665,018


2,924,031


2,715,109


General and administrative expenses










   Corporate


2,494,822


2,049,717


11,979,017


12,055,725


   Commercial and chartering


607,414


785,541


2,619,748


2,021,487


Total operating expenses


46,342,840


41,481,528


187,422,190


140,404,935












Profit from operations


1,423,795


1,697,503


8,513,202


23,999,003












Interest expense and finance costs


(5,350,638)


(5,459,297)


(21,380,165)


(17,754,118)


Interest income


109,179


57,204


436,195


164,629


Loss on disposal of vessels


-


-


-


(2,601,148)


(Loss) / profit before taxes


(3,817,664)


(3,704,590)


(12,430,768)


3,808,366












Income tax


(11,728)


16,816


(59,567)


(60,434)












Net (loss) / profit


(3,829,392)


(3,687,774)


(12,490,335)


3,747,932












(Loss) / earnings per share basic and diluted


(0.12)


(0.11)


(0.37)


0.12


(Loss) / earnings per share from continuing
operations (1)


(0.12)


(0.11)


(0.37)


0.21


Weighted average number of shares
outstanding, basic and diluted


33,045,043


33,575,611


33,441,879


30,141,891






















(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)











Twelve months ended






Dec 31, 2017


Dec 31, 2016


OPERATING ACTIVITIES








Net (loss) / profit




(12,490,335)


3,747,932


Non-cash items:








Depreciation




34,271,091


30,091,237


Amortization of deferred drydock expenditure




2,924,031


2,715,109


Share based compensation




457,046


1,304,325


Loss on disposal of vessels




-


2,601,148


Amortization of deferred finance charges




3,060,525


3,415,452


Changes in operating assets and liabilities:








Receivables, trade




(4,116,021)


3,040,535


Working capital advances




200,000


175,000


Prepayments




(609,872)


239,356


Advances and deposits




120,555


375,510


Other receivables




82,636


(58,683)


Inventories




(2,292,994)


(3,369,769)


Payables, trade




1,656,356


1,965,503


Charter revenue received in advance




(507,780)


(684,537)


Other payables




911


(139,578)


Accrued interest on loans




(530,015)


315,765


Deferred drydock expenditure




(3,809,906)


(3,099,805)


Net cash provided by operating activities




18,416,228


42,634,500










INVESTING ACTIVITIES








Payments for acquisition of vessels and equipment




(372,504)


(174,012,168)


Net proceeds from sale of vessels




-


52,656,414


Transfer to segregated account in respect of agreement to buy new vessels




(1,635,000)


-


Payments for leasehold improvements




(12,279)


(530,717)


Payments for other non-current assets




(262,468)


(424,760)


Net cash used in investing activities




(2,282,251)


(122,311,231)










FINANCING ACTIVITIES








Proceeds from long-term debt




11,092,157


110,010,000


Repayments of long-term debt




(62,691,746)


(42,208,171)


Proceeds from capital leases




33,120,000


9,245,749


Repayments of capital leases




(2,060,264)


(27,097,348)


Payments for deferred finance charges




(826,841)


(6,036,243)


Net proceeds from equity offering




-


63,927,416


Repurchase of common stock




(11,262,749)


(2,993,931)


Payment of dividend




-


(9,327,251)


Net cash (used in) / provided by financing activities




(32,629,443)


95,520,221










Net (decrease) / increase in cash and cash equivalents




(16,495,466)


15,843,491










Cash and cash equivalents at the beginning of the year




55,952,873


40,109,382










Cash and cash equivalents at the end of the year




39,457,407


55,952,873


 

 

Ardmore Shipping Corporation

Unaudited Other Operating Data

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








Three months ended


Twelve months ended



Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016










EBITDA (1)


11,022,322


10,875,622


45,708,324


54,204,201










AVERAGE DAILY DATA









Fleet time charter equivalent per day (2)


12,583


12,307


12,709


14,785










Fleet operating costs per day (3)


5,888


6,158


5,914


6,017

Technical management fees per day (4)


381


373


384


388



6,269


6,531


6,298


6,405










MR Tankers Spot & Pool TCE per day (2)


12,131


12,113


12,975


14,627










MR Tankers Eco-Design









TCE per day (2)


12,042


12,389


12,902


15,098

Vessel operating costs per day (5)


6,170


6,012


6,185


6,078










MR Tankers Eco-Mod









TCE per day (2)


13,163


11,910


12,975


14,318

Vessel operating costs per day (5)


6,641


7,062


6,597


6,688










Prod/Chem Tankers Eco-Design (25k - 37k Dwt)









TCE per day (2)


13,369


12,502


11,949


15,395

Vessel operating costs per day (5)


6,141


6,570


6,282


6,289










FLEET









Upgrades and enhancements expensed


495,388


193,966


784,697


642,782










Average number of owned operating vessels


27


26.8


27


24.1





(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 gross charter rate or gross 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. MR Tankers Spot & Pool TCE is reported on a discharge to discharge basis.

(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 February 7, 2018









Vessel Name

Type

Dwt Tonnes

IMO

Built

Country

Flag

Specification

Ardmore Seavaliant

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

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 Sealancer

Product

47,451

Jun-08

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

28

1,250,019







 

Non-GAAP Measures

This press release describes EBITDA, adjusted 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. Adjusted EBITDA is defined as EBITDA before certain items that Ardmore believes are not representative of its operating performance. Earnings per share from continuing operations is defined as earnings per share ("EPS") reported under U.S. 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.

 

Reconciliation of net (loss) / profit to
EBITDA


Three months ended


Twelve months ended



Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016










Net (loss) / profit


(3,829,392)


(3,687,774)


(12,490,335)


3,747,932

Interest income


(109,179)


(57,204)


(436,195)


(164,629)

Interest expense and finance costs


5,350,638


5,459,297


21,380,165


17,754,118

Income tax


11,728


(16,816)


59,567


60,434

Depreciation


8,645,709


8,513,101


34,271,091


30,091,237

Amortization of deferred drydock expenditure


952,818


665,018


2,924,031


2,715,109

EBITDA


11,022,322


10,875,622


45,708,324


54,204,201

Loss on disposal of vessels


-


-


-


2,601,148

ADJUSTED EBITDA


11,022,322


10,875,622


45,708,324


56,805,349
















Earnings per share from continuing operations


Three months ended


Twelve months ended



Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016










Net (loss) / profit


(3,829,392)


(3,687,774)


(12,490,335)


3,747,932

Adjust for loss on disposal of vessels


-


-


-


2,601,148

Adjusted net (loss) / profit


(3,829,392)


(3,678,774)


(12,490,335)


6,349,080










EPS from continuing operations


(0.12)


(0.11)


(0.37)


0.21

Weighted average number of shares


33,045,043


33,575,611


33,441,879


30,141,891

 

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. In some cases, you can identify the forward-looking statements by the use of words such as "believe", "anticipate", "intends", "estimate", "forecast", "plan", "potential", "may", "expect", and similar expressions.

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: [email protected]

Or

Mr. Bryan Degnan
The IGB Group
45 Broadway, Suite 1150
New York, NY 10006
Tel: 646-673-9701
Fax: 212-477-8636
Email: [email protected]

SOURCE Ardmore Shipping Corporation

Investor Enquiries

Mr Leon Berman, The IGB Group
Tel: +1 212-477-8438 Fax: +1 212-477-8636
Email: [email protected]