STEALTHGAS INC. Reports Second Quarter and Six Months 2013 Financial and Operating Results

STEALTHGAS INC. Reports Second Quarter and Six Months 2013 Financial and
Operating Results

ATHENS, Greece, Aug. 20, 2013 (GLOBE NEWSWIRE) -- STEALTHGAS INC.
(Nasdaq:GASS), a ship-owning company primarily serving the liquefied petroleum
gas (LPG) sector of the international shipping industry, announced today its
unaudited financial and operating results for the second quarter and six
months ended June 30, 2013.

Second Quarter 2013 Results:

  *Revenues for the three months ended June 30, 2013 amounted to $30.3
    million, an increase of $1.2 million, or 4.1%, compared to revenues of
    $29.1 million for the three months ended June 30, 2012, primarily due to
    the higher number of vessels in the 2013 period.
  *Voyage expenses and vessels' operating expenses for the three months ended
    June 30, 2013 were $4.6 million and $8.7 million, respectively, compared
    to $2.7 million and $7.5 million for the three months ended June 30, 2012.
    The $1.9 million increase in voyage expenses was primarily due to the
    higher number of vessels under spot charters in the 2013 period. The $1.2
    million increase in operating expenses was primarily the result of the
    increase in the number of vessels operated in the 2013 period, including
    both the vessels that were added in the fleet and two vessels that came
    off bareboat charters, which we operated under time charters during the
    second quarter of 2013.
  *Drydocking Costs for the three months ended June 30, 2013 were $0.9
    million as three vessels were drydocked during the period, compared to two
    vessels being drydocked during the same period last year at a cost of $0.5
    million. The drydock of one of the vessels was originally planned for next
    year but took place during this quarter for technical and commercial
    purposes.
  *No vessel sales took place during the three months ended June 30, 2013
    while for the same period in 2012 a $0.1 million gain on sale of a vessel
    was reported.
  *Depreciation for the three months ended June 30, 2013, was $7.5 million, a
    $0.4 million increase from $7.1 million for the same period of last year.
    This increase was due to the additional depreciation for one vessel
    joining the fleet in the second quarter of last year and three vessels
    joining the fleet in the second quarter of this year.
  *Interest and finance costs for the three months ended June 30, 2013 were
    $2.0 million compared to $2.3 million for the same period last year. The
    reduction in interest and finance cost was due to a combination of lower
    interest rates and lower outstanding loan balances.
  *As a result of the above, the Company had net income for the three months
    ended June 30, 2013 of $5.1 million, compared to net income of $7.2
    million for the three months ended June 30, 2012. The average number of
    shares outstanding as of June 30, 2013 increased to 28.3 million compared
    to 20.6 million for the same period of last year, due to the public
    offering of 11.5 million shares completed on April 30, 2013. Earnings per
    share for the three months ended June 30, 2013 amounted to $0.18 compared
    to $0.35 for the same period of last year.
  *Included in the second quarter 2013 results are net gains from interest
    rate derivative instruments of $0.2 million. Interest paid on interest
    rate swap arrangements amounted to $0.5 million, or $0.02 per share and
    change in fair value of the same arrangements amounted to $0.7 million.
    Adjusted net income was $4.4 million or $0.16 per share for the three
    months ended June 30, 2013 compared to $6.5 million or $0.31 per share for
    the same period last year.
  *EBITDA for the three months ended June 30, 2013 amounted to $15.1 million.
    Reconciliations of Adjusted Net Income and EBITDA to Net Income and
    Adjusted EBITDA to Adjusted Net Income are set forth below.

An average of 38.1 vessels were owned by the Company during the three months
ended June 30, 2013, compared to 36.5 vessels for the same period of 2012. As
of today, charter coverage for the fleet is 83% through the end of 2013 and
50% for 2014.

As of June 30, 2013, cash and cash equivalents amounted to $110.5 million and
total debt to $327.1 million. During the six months ended June 30, 2013 debt
repayments amounted to $18.2 million.

Six Months 2013 Results:

  *Revenues for the six months ended June 30, 2013, amounted to $59.7
    million, an increase of $1.4 million, or 2.4%, compared to revenues of
    $58.3 million for the six months ended June 30, 2012, primarily due to the
    higher number of vessels under spot charters in the 2013 period.
  *Voyage expenses and vessels' operating expenses for the six months ended
    June 30, 2013 were $8.1 million and $16.7 million, respectively, compared
    to $5.3 million and $15.2 million for the six months ended June 30, 2012.
    The $2.8 million, increase in voyage expenses was primarily due to the
    higher number of vessels under spot charters in the 2013 period. 
  *Drydocking Costs for the six months ended June 30, 2013 were $1.4 million
    as four vessels were drydocked during the period, compared to three
    vessels being drydocked during the same period last year at a cost of $1.8
    million.
  *Depreciation for the six months ended June 30, 2013, was $14.8 million, a
    $0.7 million increase from $14.1 million for the same period of last year.
    This increase was due to the higher number of vessels in our fleet in the
    2013 period.
  *Interest and finance costs for the six months ended June 30, 2013 were
    $4.1 million compared to $4.8 million for the same period last year. The
    reduction in interest and finance cost was due to a combination of lower
    interest rates and lower outstanding loan balances.
  *No vessel sales took place during the six months ended June 30, 2013 while
    for the same period in 2012 a $1.4 million gain on sale of a vessel was
    reported.
  *As a result of the above, the Company had net income for the six months
    ended June 30, 2013 of $11.5 million, compared to net income of $14.6
    million for the six months ended June 30, 2012. The average number of
    shares outstanding as of June 30, 2013 increased to 24.4 million compared
    to 20.6 million for the same period of last year, due to the public
    offering of 11.5 million shares completed on April 30, 2013. Earnings per
    share for the six months ended June 30, 2013 amounted to $0.47 compared to
    $0.71 for the same period of last year.
  *Included in the first six months of 2013 results are net gains from
    interest rate derivative instruments of $0.2 million. Interest paid on
    interest rate swap arrangements amounted to $1.7 million, or $0.07 per
    share and change in fair value of the same arrangements amounted to $1.9
    million. Adjusted net income was $9.8 million or $0.40 per share for the
    six months ended June 30, 2013 compared to $11.7 million or $0.57 per
    share for the same period last year.
  *EBITDA for the six months ended June 30, 2013 amounted to $32.0 million.
    Reconciliations of Adjusted Net Income and EBITDA to Net Income and
    Adjusted EBITDA to Adjusted Net Income are set forth below.

An average of 37.6 vessels were owned by the Company during the six months
ended June 30, 2013, compared to 36.7 vessels for the same period of 2012.

CEO Harry Vafias commented

In general I am not happy with the quarter, however, I see as a positive sign
that in July, we were successful in securing long term charters for three of
our vessels that had come off charter. We concluded a three year time charter
extension for the 7,000cbm, Gas Haralambos, until July 2016, a three year time
charter for the 7,517cbm, Gas Cathar, until July 2016 and a one year time
charter for the 6,300cbm, Gas Flawless, until July 2014. As a result of these
three charters, the Company has secured approximately $30 million in
contracted revenues over the next three years. There is healthy demand for
modern vessels, while overall the market remains stable. Summer months
typically slow down, hence resulting in lower revenues in our LPG segment of
the market but we expect that during the winter markets will pick up again. As
a result, the market for older ships operating in the spot market was weaker
and as we had comparatively more vessels in the spot market -hence the
increase in voyage expenses- two of our older vessels underperformed while
the remaining vessels operated successfully. We also decided to dry-dock a
vessel earlier than its intended date in order to coincide with some
maintenance which resulted in higher expenses and ultimately a negative impact
on the bottom line. We are continuing with our short term strategy to reduce
the number of vessels available in the spot market and conclude more period
charters of various lengths as our fleet grows.

In this opportune time, our medium term goal is to modernize and expand the
fleet through the optimal use of the proceeds from our April equity offering.
It will take a few quarters to see the effects of our fleet growth but we have
already made significant commitments to increase the LPG fleet from 33 vessels
to 42 vessels at a cost of approximately $190 million. Last quarter we took
delivery of 3 vessels, the Gas Alice and Gas Enchanted in May and the Gas
Inspiration in June. As a result we have committed to expand our fleet by
another 6 vessels by the end of 2015, all of which are newbuildings. We are in
advanced discussions with banks for financing all of these acquisitions with
some of them already being committed. The support from our lending
institutions allows us to seek further opportunities for growth and we expect
to add more modern and high quality vessels to our fleet in the near future.

Conference Call details:

On August 20, 2013 at 11:00 am ET, the company's management will host a
conference call to discuss the results and the company's operations and
outlook.

Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1866 682 8490 (US Toll Free Dial In) or 0844 571
8957 (UK Toll Free Dial In).

In case of any problems with the above numbers, please dial +1 631 621 5256
(US Toll Dial In), or +44 (0)1452 555 131 (Standard International Dial In).
Access Code: 31787448.

A telephonic replay of the conference call will be available until August 26,
2013 by dialing 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll
Free Dial In) or +44 (0)1452 5500 00 (Standard International Dial In). Access
Code: 31787448#

Slides and audio webcast:

There will also be a live-and then archived webcast of the conference call,
through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the
live webcast should register on the website approximately 10 minutes prior to
the start of the webcast.

About STEALTHGAS INC.

Headquartered in Athens, Greece, StealthGas Inc. is a ship-owning company
primarily serving the liquefied petroleum gas ("LPG") sector of the
international shipping industry. StealthGas Inc. currently has a fleet of 36
LPG carriers with a total capacity of 173,822 cubic meters, three medium range
product tankers and one Aframax oil tanker with a total capacity of 255,804
deadweight tons. The Company has agreed to acquire six LPG carriers, with
expected deliveries in 2014 and 2015. Once the acquisition of the six LPG
carriers is completed and the vessels are delivered, StealthGas Inc.'s LPG
carrier fleet will be composed of 42 LPG carriers with a total capacity of
208,222 cubic meters. StealthGas Inc.'s shares are listed on the NASDAQ Global
Select Market and trade under the symbol "GASS."

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may 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 forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, management's examination of
historical operating trends, data contained in our records and other data
available from third parties. Assumptions, expectations, projections,
intentions and beliefs about future events may, and often do, vary from actual
results and these differences can be material.There are a variety of factors,
many of which are beyond our control, which affect our operations,
performance, business strategy and results and could cause actual reported
results and performance to differ materially from the performance and
expectations expressed in these forward-looking statements. Important factors
that, in our view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including changes in
charter hire rates and vessel values, charter counterparty performance,
changes in demand that may affect attitudes of time charterers to scheduled
and unscheduled dry dockings, changes in STEALTHGAS INC's operating expenses,
including bunker prices, dry-docking and insurance costs, ability to obtain
financing and comply with covenants in our financing arrangements, or actions
taken by regulatory authorities, potential liability from pending or future
litigation, domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events or acts by
terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS
INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment

For information on our fleetand further information:

Visit our website at www.stealthgas.com

Fleet Data:

The following key indicators highlight the Company's operating performance
during the second quarters ended June 30, 2012 and June 30, 2013.

FLEET DATA                            Q2 2012 Q2 2013 6M 2012 6M 2013
Average number of vessels (1)         36.5    38.1    36.7    37.6
Period end number of vessels in fleet 37      40      37      40
Total calendar days for fleet (2)     3,319   3,470   6,686   6,800
Total voyage days for fleet (3)       3,288   3,404   6,553   6,711
Fleet utilization (4)                 99.1%   98.1%   98.0%   98.7%
Total charter days for fleet (5)      2,869   2,717   5,831   5,506
Total spot market days for fleet (6)  419     687     722     1,205
Fleet operational utilization (7)     94.3%   91.7%   95.1%   93.8%

1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number of
calendar days in that period.

2) Total calendar days are the total days the vessels were in our possession
for the relevant period including off-hire days associated with major repairs,
drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels were in our
possession for the relevant period net of off-hire days associated with major
repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available
for revenue generating voyage days, and is determined by dividing voyage days
by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels in
our fleet operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the
vessels in our fleet operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels
generated revenue, and is determined by dividing voyage days (excluding
commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted
EPS:

Adjusted Net Income represents Net Income before (gain)/loss on sale of
assets, loss on derivatives, excluding swap interest paid, share based
compensation and unrealized exchange differences. EBITDA represents net income
before interest and swap interest paid, income tax expense, depreciation and
amortization. Adjusted EBITDA represents adjusted net income before interest
and swap interest paid, income tax expense, depreciation and amortization.
Adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, are not
recognized measurements under U.S. GAAP. Our calculation of adjusted net
income, adjusted EPS, EBITDA and adjusted EBITDA, may not be comparable to
that reported by other companies in the shipping or other industries. In
evaluating Adjusted EBITDA and Adjusted Net Income, you should be aware that
in the future we may incur expenses that are the same asor similar to some of
the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included
herein because they are a basis, upon which we assess our financial
performance. They allow us to present our performance from period to period on
a comparable basis and provide additional information on fleet operational
results. We also use EBITDA to assess our liquidity position and believe it
represents useful information for investors regarding a company's ability to
service and/or incur indebtedness.

(Expressed in United States
Dollars, except number of       Second Quarter Ended   Six Months Period Ended
shares)                         June 30th,             June 30th
                               2012        2013       2012        2013
Net Income - Adjusted Net                                       
Income
Net income                      7,185,909   5,079,926  14,565,421  11,538,583
Loss/(gain) on derivatives      311,922     (190,515)  763,450     (218,600)
Less swap interest paid         (1,057,038) (529,644)  (2,374,186) (1,711,400)
Gain on sale of vessel, net     (97,444)    --         (1,372,409) --
Unrealized exchange loss        114,266     8,913      93,850      8,028
Share based compensation        --          72,957     --          145,112
Adjusted Net Income             6,457,615   4,441,637  11,676,126  9,761,723
                                                               
Net Income – EBITDA                                             
Net income                      7,185,909   5,079,926  14,565,421  11,538,583
Plus interest and finance       3,389,981   2,561,989  7,164,652   5,764,786
costs, incl. swap interest paid
Less interest income            (58,754)    (60,625)   (106,241)   (120,607)
Plus depreciation               7,072,883   7,488,612  14,108,225  14,822,833
EBITDA                          17,590,019  15,069,902 35,732,057  32,005,595
                                                               
Adjusted Net Income – Adjusted                                  
EBITDA
Adjusted Net Income             6,457,615   4,441,637  11,676,126  9,761,723
Plus interest and finance       3,389,981   2,561,989  7,164,652   5,764,786
costs, incl. swap interest paid
Less interest income            (58,754)    (60,625)   (106,241)   (120,607)
Plus depreciation               7,072,883   7,488,612  14,108,225  14,822,833
Adjusted EBITDA                 16,861,725  14,431,613 32,842,762  30,228,735
                                                               
EPS - Adjusted EPS                                              
Net income                      7,185,909   5,079,926  14,565,421  11,538,583
Adjusted net income             6,457,615   4,441,637  11,676,126  9,761,723
Weighted average number of      20,552,568  28,261,359 20,552,568  24,428,259
shares
EPS – Basic and Diluted         0.35        0.18       0.71        0.47
Adjusted EPS                    0.31        0.16       0.57        0.40


StealthGas Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except number of shares)
                                                    Six Month Periods Ended
                           Quarters Ended June 30,   June 30,
                          2012         2013         2012         2013
                                                              
Revenues                                                       
Voyage revenues            29,051,160   27,822,088   58,173,977   54,835,799
Voyage revenues - related  96,717       2,441,791    96,717       4,875,541
party
Total revenues             29,147,877   30,263,879   58,270,694   59,711,340
                                                              
Expenses                                                       
Voyage expenses            2,348,615    4,243,866    4,582,088    7,349,225
Voyage expenses - related  359,833      373,628      718,295      739,087
party
Vessels' operating         7,417,909    7,634,160    15,006,474   14,621,229
expenses
Vessels' operating         75,584       1,065,421    152,084      2,040,760
expenses - related party
Dry-docking costs          499,819      874,490      1,782,904    1,370,216
Management fees - related  1,048,533    1,152,195    2,128,703    2,230,395
party
General and administrative 542,372      559,806      1,165,383    1,241,401
expenses
Depreciation               7,072,883    7,488,612    14,108,225   14,822,833
Net gain on sale of        (97,444)    --          (1,372,409) --
vessels
Total expenses             19,268,104   23,392,178   38,271,747   44,415,146
                                                              
Income from operations     9,879,773    6,871,701    19,998,947   15,296,194
                                                              
Other (expenses)/income                                        
Interest and finance costs (2,332,943) (2,032,345) (4,790,466) (4,053,386)
(Loss)/gain on derivatives (311,922)   190,515     (763,450)   218,600
Interest income            58,754      60,625      106,241     120,607
Foreign exchange           (107,753)   (10,570)    14,149      (43,432)
gain/(loss)
Other expenses, net        (2,693,864) (1,791,775) (5,433,526) (3,757,611)
                                                              
Net income                 7,185,909    5,079,926    14,565,421   11,538,583
                                                              
Earnings per share                                            
- Basic and diluted        0.35         0.18         0.71         0.47
                                                              
Weighted average number of                                     
shares
-Basic and diluted        20,552,568   28,261,359   20,552,568   24,428,259

                                                                 
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
                                                     December 31, June 30,
                                                     2012         2013
                                                                 
Assets                                                            
Current assets                                                    
Cash and cash equivalents                             42,273,000   110,507,823
Trade and other receivables                           3,029,284    6,183,701
Claims receivable                                     32,835       307,262
Inventories                                           3,152,407    3,791,862
Advances and prepayments                              435,226      571,965
Restricted cash                                       7,340,655    6,653,566
Total current assets                                  56,263,407   128,016,179
                                                                 
Non current assets                                                
Advances for vessels under construction               19,321,045   19,534,961
Vessels, net                                          634,634,671  663,995,799
Other receivables                                     224,422      484,302
Restricted cash                                       1,300,000    1,300,000
Deferred finance charges, net of accumulated          1,295,486    1,075,862
amortization of $1,786,158 and $1,894,998
Total non current assets                              656,775,624  686,390,924
Total assets                                          713,039,031  814,407,103
                                                                 
Liabilities and Stockholders' Equity                              
Current liabilities                                               
Payable to related party                              7,288,899    4,208,443
Trade accounts payable                                5,927,526    9,048,222
Accrued liabilities                                   2,855,170    4,167,112
Customer deposits                                     280,000      --
Deferred income                                       3,129,671    2,563,768
Fair value of derivatives                             539,904      --
Current portion of long-term debt                     35,787,544   47,428,884
Total current liabilities                             55,808,714   67,416,429
                                                                 
Non current liabilities                                           
Fair value of derivatives                             5,409,337    4,137,105
Other non current liabilities                         222,770      363,767
Long-term debt                                        309,564,768  279,706,906
Total non current liabilities                         315,196,875  284,207,778
Total liabilities                                     371,005,589  351,624,207
                                                                 
Commitments and contingencies                         --          --
                                                                 
Stockholders' equity                                              
Capital stock                                        206,273      321,273
Additional paid-in capital                            275,792,164  385,005,899
Retained earnings                                     66,016,627   77,555,210
Accumulated other comprehensive income/(loss)         18,378       (99,486)
Total stockholders' equity                            342,033,442  462,782,896
Total liabilities and stockholders' equity            713,039,031  814,407,103


StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
                                             Six Month Periods Ended June 30,
                                             2012             2013
                                                             
Cash flows from operating activities                          
Net income for the period                     14,565,421       11,538,583
                                                             
Adjustments to reconcile net income to net                    
cash provided by operating activities:
Depreciation                                  14,108,225       14,822,833
Amortization of deferred finance charges      208,481          219,624
Unrealized exchange loss                      93,850           8,028
Share based compensation                      --               145,112
Change in fair value of derivatives           (1,610,736)     (1,930,000)
Net gain on sale of vessels                   (1,372,409)     --
                                                             
Changes in operating assets and liabilities:                  
(Increase)/decrease in                                        
Trade and other receivables                   (186,916)       (3,414,297)
Claims receivable                             (259,483)       (365,911)
Inventories                                   77,204          (639,455)
Advances and prepayments                      (163,040)       (136,739)
Increase/(decrease) in                                        
Payable to related party                      (508,291)       (3,080,456)
Trade accounts payable                        (797,908)       3,120,696
Accrued liabilities                           (399,080)       1,311,942
Other non current liabilities                 --               140,997
Deferred income                               850,130          (565,903)
Net cash provided by operating activities     24,605,448       21,175,054
                                                             
Cash flows from investing activities                          
Insurance proceeds                            629,339          91,484
Acquisitions and advances for vessels under   (43,278,652)    (44,397,877)
construction
Proceeds from sale of vessels, net            18,136,907       --
Decrease in restricted cash account           1,301,690        687,089
Net cash used in investing activities         (23,210,716)    (43,619,304)
                                                             
Cash flows from financing activities                          
Net proceeds from common stock issuance       --               109,183,623
Customer deposits paid                        --               (280,000)
Loan repayment                                (31,072,097)    (18,216,522)
Proceeds from long-term debt                  43,250,000       --
Net cash provided by financing activities     12,177,903       90,687,101
                                                             
Effect of exchange rate changes on cash       (93,850)        (8,028)
                                                             
Net increase in cash and cash equivalents     13,478,785       68,234,823
Cash and cash equivalents at beginning of     43,539,303       42,273,000
year
Cash and cash equivalents at end of year      57,018,088       110,507,823

CONTACT: Company Contact:
         Konstantinos Sistovaris
         Chief Financial Officer
         STEALTHGAS INC.
         011-30-210-6250-001
         E-mail: info@stealthgas.com
 
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