Ardmore Shipping Corporation Announces Financial Results for Year and Fourth Quarter 2013

  Ardmore Shipping Corporation Announces Financial Results for Year and Fourth
  Quarter 2013

Business Wire

HAMILTON, Bermuda -- February 13, 2014

Ardmore Shipping Corporation (NYSE:ASC) (“Ardmore” or the “Company”) today
announced results for the twelve and three months ended December31, 2013.

Highlights

      Reported EBITDA (see Non-GAAP Measures section below) of $9.5 million
      for the twelve months ended December 31, 2013, an increase of $4.4
      million from $5.1 million for the twelve months ended December 31, 2012.
      The Company reported a net loss of $3.8 million for the twelve months
•   ended December 31, 2013, or $0.21 basic and diluted loss per share, as
      compared to a net loss of $4.5 million, or $0.25 basic and diluted loss
      per share, for the twelve months ended December 31, 2012. Basic and
      diluted losses per share are based on 18,050,000 shares, which equates
      to the common shares outstanding after our IPO.
      
      Adjusted EBITDA (see Non-GAAP Measures section below) was $10.8 million
      for the twelve months ended December 31, 2013, an increase of $5.7
      million from $5.1 million for the twelve months ended December 31, 2012.
      Adjusted net loss (see Non-GAAP Measures section below) was $2.4
•     million, or $0.13 basic and diluted adjusted loss per share for the
      twelve months ended December 31, 2013. This compared to an adjusted net
      loss of $4.5 million, or $0.25 basic and diluted adjusted loss per share
      for the twelve months ended December 31, 2012. Basic and diluted losses
      per share are based on 18,050,000 shares, which equates to the common
      shares outstanding after our IPO.
      
      Took delivery of two mid-range (“MR”) product and chemical tankers in
      January 2014. The first is the Ardmore Seavantage, Ardmore’s third MR
•     product and chemical tanker newbuilding delivered from SPP Shipbuilding
      Co.,Ltd. in South Korea. The second is the Ardmore Seamariner, a 45,726
      Dwt MR product tanker built in October 2006 at Minami Nippon
      Shipbuilding Co., Ltd., Japan.
      
      Committed three vessels to time charters: the Ardmore Seavaliant to a
      one year time charter at a rate of $17,100 per day, the Ardmore
•     Seamariner to a three-month charter at a rate of $16,050 per day and the
      Ardmore Centurion to a six to twelve-month charter at a rate of $13,500
      per day.
      
      Completed Eco-mod upgrades to the Ardmore Seamariner in conjunction with
•     its intermediate survey and completed planned fuel efficiency and
      commercial upgrades to the Ardmore Centurion.
      
      Opened an executive office in Bermuda on February 7, 2014. Our operating
•     office will continue to be located in Ireland through our wholly owned
      subsidiary, Ardmore Shipping Limited.
      
      Announced a cash dividend of $0.10 per share for the quarter ended
•     December 31, 2013 in line with previously stated intentions to pay
      shareholders quarterly dividends of $0.10 per share, or $0.40 per share
      per year.
      
      Signed a commitment letter for a senior debt facility with ABN AMRO Bank
•     N.V., Nordea Bank Finland Plc and Skandinaviska Enskilda Banken AB
      (“SEB”) in the amount of $172.0 million to finance eight of the vessels
      currently on order.
      

Summary of Recent and Fourth Quarter Events

Fleet Operations

On January7, 2014, Ardmore took delivery of the 2006-builtArdmore
Seamariner, a 45,726 Dwt MR product tanker built at Minami Nippon Shipbuilding
Co., Ltd. inJapan, which was acquired by the Company in October 2013. On
delivery, the vessel entered drydock, where it was upgraded to Eco-mod in
conjunction with its scheduled intermediate survey.On completion of drydock,
the vessel commenced employment on a three-month time charter at a rate
of$16,050per day in February 2014.

On January17, 2014, Ardmore took delivery of its third newbuilding,
theArdmore Seavantage, a 49,997 Dwt IMO 3 Eco-design MR product and chemical
tanker built at SPP Shipbuilding Co., Ltd.in South Korea.Following delivery,
theArdmore Seavantage commenced employment under an existing charter
arrangement with the Vitol Group.

The Ardmore Seavaliant, a 49,998 Dwt Eco-Design IMO 3 MR product and chemical
tanker, was committed to a one-year time charter commencing in February 2014
at a rate of$17,100per day. This rate represents an increase in time charter
rates for Eco-design MR tankers of approximately$2,000per day compared to
one year ago.

On January30, 2014, Ardmore completed upgrades to the Ardmore Centurion. The
upgrades further improve fuel efficiency, allow carriage of a broader range of
cargos and reduce cleaning time, which will enhance the vessel’s earnings
potential. On redelivery, the vessel commenced employment on a six to
twelve-month time charter at a rate of$13,500per day, subject to certain
conditions.

With the addition of the Ardmore Seamariner and Ardmore Seavantage, Ardmore’s
fleet stands at 10 ships in operation and 11 Eco-design product and chemical
tankers on order, with the next newbuilding vessel, theArdmore Seavanguard,
scheduled to deliver from SPP Shipbuilding Co., Ltd. in mid-February 2014, at
which time 52% of our fleet will be in the water and able to generate
cashflow.

Financing

On February3, 2014, Ardmore obtained a commitment letter for a senior debt
facility with ABN AMRO Bank N.V., Nordea Bank Finland Plc and Skandinaviska
Enskilda Banken AB (“SEB”) in the amount of $172.0 million. The proceeds are
expected to be used to finance up to 65% of the purchase price of eight
vessels that Ardmore currently has on order. The commitment has a margin at
3.15% above LIBOR and the terms include an accordion option whereby, subject
to lenders approval, Ardmore may request to increase the facility to finance
the acquisition of additional vessels.

Company

On February7, 2014, the Company obtained a permit from the Ministry of
Finance in Bermuda to open an executive office at 69 Pitts Bay Road, Pembroke,
HM 08, Bermuda. The Company’s operating office will continue to be located in
Ireland, through our wholly owned subsidiary, Ardmore Shipping Limited, with
offices at City Gate Building 1000, Mahon Cork, Ireland.

Dividend

On January15, 2014, Ardmore’s Board of Directors announced a cash dividend of
$0.10 per share for the quarter ended December31, 2013. The cash dividend is
payable on February14, 2014 to all shareholders of record on January31,
2014.

Results for the twelve months ended December31, 2013 and 2012

For the twelve months ended December31, 2013, the Company reported EBITDA
(see Non-GAAP Measures section below) of $9.5 million, an increase of $4.4
million from $5.1 million for the twelve months ended December31, 2012. The
Company had a net loss of $3.8 million for the twelve months ended
December31, 2013, as compared to a net loss of $4.5 million for the twelve
months ended December31, 2012.

For the twelve months ended December31, 2013, the Company had an adjusted
EBITDA (see Non-GAAP Measures section below) of $10.8 million as compared to
$5.1 million for the twelve months ended December31, 2012. The Company had an
adjusted net loss (see Non-GAAP Measures section below) of $2.4 million, or
$0.13 basic and diluted adjusted loss per share for the twelve months ended
December31, 2013. This excludes $0.7 million of non-recurring fees and
expenses incurred in connection with our IPO, $0.6 million of share based
compensation (non-cash) and $0.2 million of deferred finance fees written off
in relation to the repayment of senior loan facilities on two vessels. This
compared to an adjusted net loss of $4.5 million for the twelve months ended
December31, 2012, or $0.25 basic and diluted adjusted loss per share. The
number of shares used in determining adjusted loss per share was 18,050,000,
which is the full number of issued shares at the IPO date.

Management’s Discussion and Analysis of Financial Results

Revenue for the year ended December31, 2013 was $35.9 million, an increase of
$10.7 million from $25.2 million for the year ended December31, 2012. Revenue
days on owned vessels increased by 520 days from 2,129 days for the year ended
December31, 2012 to 2,649 days for the year ended December31, 2013. Revenue
on owned vessels for the year ended December31, 2013 was $35.9 million, an
increase of $12.3 million from $23.6 million for the year ended December31,
2012. The increase primarily relates to the Ardmore Seavaliant and Ardmore
Seaventure, which were delivered on February27, 2013 and June7, 2013,
respectively. In addition, the Ardmore Centurion was employed on a time
charter until August3, 2013 and following re-delivery to us, it was employed
under a spot chartering arrangement. Under a time charter, voyage costs are
borne by the Charterer and thus revenue is recognized net of voyage expenses.
Under a spot chartering arrangement, voyage expenses are borne directly by the
Company and thus revenue is recognized on a gross freight basis. Chartering
days for chartered-in vessels decreased from 265 days for the year ended
December31, 2012 to nil for the year ended December31, 2013. Chartering
revenue for the year ended December31, 2012 was $1.5 million. This is due to
re-delivery of chartered-in vessels (theHellespont Crusaderand
theHellespont Commander) that were delivered to us on May12, 2011, and
July17, 2011, respectively. Gross fleet TCE rate increased by $1,939 per day
from $10,911 for the year ended December31, 2012 to $12,850 for the year
ended December31, 2013.

Commissions and voyage related costs for the year ended December31, 2013 were
$2.5 million, an increase of $1.7 million from $0.8 million for the year ended
December31, 2012.This increase is due to increases in revenue days and also
voyage expenses related to the Ardmore Centurion’s employment in a spot
chartering arrangement as of August3, 2013. Under a spot chartering
arrangement, all voyage expenses are borne by us, as opposed to the Charterer.
Voyage costs also include bunker and other costs associated with drydockings
which were not capitalized.

Vessel operating expenses were $18.2 million for the year ended December31,
2013, an increase of $3.6 million from $14.6 million for the year ended
December31, 2012. These costs primarily comprise crew, technical, lube oil,
and insurance expenses. The operating expenses are based on the number of
operating days in the year. Operating days for our owned vessels were 2,703
days for the year ended December31, 2012 as compared to 2,196 for the year
ended December31, 2012.

Charter hire costs were $0 for the year ended December31, 2013 as compared to
$1.7 million for the year ended December31, 2012. Ardmore re-delivered two
chartered-in vessels in 2012 (theHellespont Crusaderand theHellespont
Commander). Chartering days for chartered-in vessels were 265 for the year
ended December31, 2012.

Depreciation charges were $8.4 million for the year ended December31, 2013,
an increase of $2.2 million from $6.2 million for the year ended December31,
2012. This increase is a result ofdeliveries of theArdmore Seavaliantand
theArdmore Seaventure which delivered on February27, 2013 and June7, 2013
respectively, along with timing of depreciation on upgrades and vessel
equipment purchased. Our vessels are depreciated over an estimated useful life
of 25 years on a straight line basis to their residual value (scrap value).
The rate used to calculate the residual value is $300 per lightweight ton.
Upgrades are depreciated on a straight line basis over the shorter of the life
of the upgrade or the remaining life of the vessel.

Amortization of deferred drydock expenditure for the year ended December31,
2013 was $1.4 million, an increase of $1.0 million from $0.4 million for the
year ended December31, 2012. The capitalized costs of drydocking are
depreciated on a straight line basis to the next scheduled drydocking. As
such, movement in amortization of deferred drydock expenditure is in line with
timing of vessels undergoing drydock.

General and administrative expenses were $5.7 million for the year ended
December31, 2013, as compared to $3.0 million for the year ended December31,
2012. $0.7 million was incurred in relation to our IPO that was expensed as
incurred. Non-cash share based compensation expense included in general and
administrative expenses for the year ended December31, 2013 amounted to $0.6
million as compared to $0.01 million for the year ended December31, 2012. The
remaining increase is due to increased expenses as a consequence of being a
public company. A significant portion of our general and administrative costs
are incurred in Euros. These expenses are susceptible to foreign currency
movements between U.S. dollars and Euros. However, we do not expect the impact
of any fluctuations in foreign currency to have a material impact on us.

Interest expense for the year ended December31, 2013 was $3.5 million as
compared to $3.0 million for the year ended December31, 2012. Interest costs
on senior debt were $3.1 million for the year ended December31, 2013, an
increase of $0.5 million from $2.6 million for the year ended December31,
2012.Interest incurred on capital leases was $1.7 million for the year ended
December31, 2013 as compared to $0 for the year ended December31, 2012.
Interest costs on our revolving credit facility for the year ended
December31, 2013 were $0 as compared to $0.5 million for the year ended
December31, 2012. Amortized deferred finance fees for the year ended
December31, 2013 were $0.8 million, as compared to $0.3 million for the year
ended December31, 2012. These increases were offset by an increase in the
amount of capitalized interest in line with deposits paid for Ardmore’s
current vessels on order. Capitalized interest for the year ended December31,
2013 was $2.2 million as compared to $0.5 million for the year ended
December31, 2012.

Results for the three months ended December31, 2013 and 2012

For the three months ended December31, 2013, the Company reported EBITDA (see
Non-GAAP Measures section below) of $1.5 million, an increase of $0.5 million
from $1.0 million for the three months ended December31, 2012. The Company
reported a net loss of $1.7 million, or $0.09 basic and diluted loss per
share, for the three months ended December31, 2013, as compared to a net loss
of $1.4 million, or $0.08 basic and diluted loss per share, for the three
months ended December31, 2012. The number of shares used in determining
adjusted loss per share was 18,050,000, which is the full number of issued
shares at the date of the Company’s IPO.

For the three months ended December31, 2013, the Company reported adjusted
EBITDA (see Non-GAAP Measures section below) was $1.8 million for the three
months ended December31, 2013, an increase of $0.8 million from $1.0 million
for the three months ended December31, 2012. Adjusted net loss (see Non-GAAP
Measures section below) was $1.3 million, or $0.07 basic and diluted adjusted
loss per share, for the three months ended December31, 2013 as compared to
adjusted net loss of $1.4 million, or $0.08 adjusted basic and diluted loss
per share for the three months ended December31, 2012. EBITDA and net loss
were adjusted for share based compensation (non-cash item) in each period, as
applicable. The number of shares used in determining adjusted loss per share
was 18,050,000, which is the full number of issued shares at the date of the
Company’s IPO.

Management’s Discussion and Analysis of Financial Results

Revenue for the three months ended December31, 2013 was $9.6 million, an
increase of $3.9 million from $5.7 million for the three months ended
December31, 2012. Product tanker revenue was $6.6 million for the three
months ended December31, 2013, an increase of $3.2 million from $3.4 million
for the three months ended December31, 2012. The increase primarily relates
to additional revenue attributable to the Ardmore Seavaliant and Ardmore
Seaventure, which delivered on February27, 2013 and June7, 2013,
respectively, and to increases in rates for time charter renewals since the
three months ended December31, 2012. Chemical tanker revenue on owned vessels
was $3.0 million for the three months ended December31, 2013, as compared to
$2.3 million for the three months ended December31, 2012. This increase is
primarily due to employment of the Ardmore Centurion whereby this vessel was
employed on a time charter up until August3, 2013 and following redelivery to
Ardmore, the vessel was employed under a spot chartering arrangement. Under a
time charter, voyage costs are borne by the Charterer and revenue is
recognized net of voyage expenses. Under a spot chartering arrangement, voyage
expenses are borne directly by the Company and thus revenue is recognized on a
gross freight basis.

Commissions and voyage related costs were $1.02 million for the three months
ended December31, 2013, an increase of $0.77 million as compared to $0.25
million for the three months ended December31, 2012. This increase is due to
increases in revenue days and also voyage expenses relating to the Ardmore
Centurion’s employment under a spot chartering arrangement from August3,
2013. Under a spot chartering arrangement, voyage expenses are borne directly
by the Company, as opposed to the Charterer. Voyage costs also include bunker
and other costs associated with drydocking which were not capitalised.

Vessel operating expenses were $5.2 million for the three months ended
December31, 2013, an increase of $1.5 million from $3.7 million for the three
months ended December31, 2012. This increase is primarily due to an increase
in the number of vessels in operation for the three months ended December31,
2013 in addition to the timing of operating expenses from quarter to quarter.

Depreciation expense for the three months ended December31, 2013 was $2.3
million, an increase of $0.8 million from $1.5 million for the three months
ended December31, 2012. The increase is due to an increase in the average
number of owned vessels to eight from six for the three months ended
December31, 2013 and 2012, as a result of the delivery of the Ardmore
Seavaliant and the Ardmore Seaventure on February27, 2013 and June7, 2013,
respectively.

Amortization of deferred drydock expenditure for the three months ended
December31, 2013 was $0.4 million, in line with $0.4 million for the three
months ended December31, 2012. The capitalized costs of drydocking are
depreciated on a straight line basis to the next scheduled drydocking. As
such, movement in amortization of deferred drydock expenditure is in line with
timing of vessels undergoing drydock.

General and administrative expenses for the three months ended December31,
2013 were $2.0 million, as compared to $0.8 million for the three months ended
December31, 2012. The increase is primarily due to costs associated with
being a publicly listed company, share based compensation (non-cash) along
with general increases arising from business expansion.

Interest expense and finance costs, which include loan interest, capital lease
interest and amortization of deferred financing fees, were$0.46 millionfor
the three months ended December 31, 2013, an increase of$0.06
millionfrom$0.40 millionfor the three months ended December31, 2012. The
increase relates to an increase in average debt balance following the delivery
of two vessels (theArdmore SeavaliantandArdmore Seaventure), additional
interest costs associated with the capital lease facility for theArdmore
CalypsoandArdmore Capellaentered into in April 2013, and an increase in
deferred financing fees amortization due to new debt drawdowns and finance
arrangement. These increases were offset by an increase in the amount of
capitalized interest in line with deposits paid for Ardmore’s current vessels
on order.

Liquidity

As of December31, 2013, the Company had $56.9 million available in cash and
cash equivalents.

The following debt and capital lease liabilities were outstanding as of:


                 As of
                   Dec 31, 2013  Dec 31, 2012
Debt               88,860,000     67,100,000
Capital Leases     30,379,015     —
Total              119,239,015    67,100,000


Conference Call

The Company plans to have a conference call on Thursday, February13, 2014 at
10:00 a.m. Eastern Time to discuss its results for the year-end and fourth
quarter December31, 2013. All interested parties are invited to listen to the
live conference call and slide presentation by choosing from the following
options:

1. By dialing 888-468-2440 (U.S.) or 719-457-2664 (International) and entering
the conference participant passcode 6852118.

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, a replay of the call will be
available for two weeks at 888-203-1112 or 719-457-0820. Enter the passcode
6852118 to access the audio replay.

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 Shipping Corporation, a company incorporated in the Republic of the
Marshall Islands, provides seaborne transportation of petroleum products and
chemicals worldwide to oil majors, national oil companies, oil and chemical
traders, and chemical companies, with our modern, fuel-efficient fleet of
mid-size product and chemical tankers. Our fleet consists of 21 vessels
including 10 in operation, and 11 vessels on order with deliveries expected to
begin in February 2014. We are strategically focused on modern, fuel-efficient
mid-size product and chemical tankers. Our fuel-efficient operations are
designed to enhance our investment returns and provide value-added service to
our customers.


Ardmore Shipping Corporation
Unaudited Condensed Consolidated Balance Sheet
(Expressed in U.S. dollars, unless otherwise stated)

                                                As at
                                                  Dec 31, 2013   Dec 31, 2012
ASSETS
Current assets
Cash and cash equivalents                         56,860,845      15,334,123
Receivables, trade                                743,406         864,386
Working capital advances                          534,571         1,573,955
Prepayments                                       471,563         223,471
Advances and deposits                             1,894,317       423,703
Other receivables                                 321,810         498,259
Inventories                                       1,131,466       666,240
                                                                  
Total current assets                              61,957,978      19,584,137
                                                                  
Non-current assets
Vessels and vessel equipment, net                 201,700,229     125,478,619
Deferred dry dock expenditure, net                1,339,238       2,517,789
Vessels under construction                        89,015,139      29,012,560
Other non-current assets, net                     158,308         133,147
Deferred finance charges, net                     3,794,741       3,234,216
                                                                  
Total non-current assets                          296,007,655     160,376,331
                                                                  
TOTAL ASSETS                                      357,965,633     179,960,468
                                                                  
LIABILITIES AND EQUITY
Current liabilities
Payables, trade                                   3,999,311       2,514,052
Charter revenue received in advance               1,806,600       851,045
Other payables                                    5,436           1,867
Amounts due to related parties                    —               600,000
Accrued interest on loans                         557,160         502,515
Current portion of long-term debt                 9,100,000       6,819,918
Current portion of capital lease obligations      1,578,686       —
                                                                  
Total current liabilities                         17,047,193      11,289,397
                                                                  
Non-current liabilities
Non-current portion of long-term debt             79,760,000      60,280,082
Non-current portion of capital lease              28,800,329      —
obligations
                                                                  
Total non-current liabilities                     108,560,329     60,280,082
                                                                  
Equity
Share capital                                     180,500         80,495
Additional paid in capital                        244,702,577     116,992,857
Accumulated deficit                               (12,524,966 )   (8,682,363 )
                                                                  
Total equity                                      232,358,111     108,390,989
                                                                  
TOTAL LIABILITIES AND EQUITY                      357,965,633     179,960,468



Ardmore Shipping Corporation
Unaudited Condensed Statement of Operations
(Expressed in U.S. dollars, unless otherwise stated)

                     Twelve months ended          Three months ended
                       Dec 31, 2013  Dec 31, 2012   Dec 31,      Dec 31,
                                                     2013          2012
REVENUE
Revenue                $ 35,867,356   25,172,654     9,626,591     5,740,283
                                                                   
OPERATING EXPENSES
Commissions and
voyage related         2,523,842      789,149        1,023,940     251,070
costs
Vessel operating       18,215,487     14,598,071     5,182,150     3,718,495
expenses
Charter hire costs     —              1,699,942      —             —
Depreciation           8,388,208      6,195,416      2,324,144     1,542,381
Amortization of
deferred dry dock      1,420,814      441,491        365,520       365,714
expenditure
General and
administrative         5,669,935      2,975,140      1,954,548     817,242
expenses
                                                                   
Total operating        36,218,286     26,699,209     10,850,302    6,694,902
expenses
                                                                   
Loss from              (350,930 )     (1,526,555 )   (1,223,711    (954,619 )
operations                                           )
                                                                   
Interest expense       (3,464,006 )   (2,966,014 )   (460,737 )    (401,168 )
and finance costs
Interest income        6,059          4,713          1,548         1,757
                                                                   
Loss before taxes      (3,808,877 )   (4,487,856 )   (1,682,900    (1,354,030
                                                     )             )
                                                                   
Income tax             (33,726 )      (51,237 )      (9,784 )      (29,186 )
                                                                   
Net loss               $ (3,842,603   (4,539,093 )   (1,692,684    (1,383,216
                       )                             )             )
                                                                   
Loss per share,        $ (0.31 )      (0.56 )        (0.09 )       (0.17 )
basic and diluted
Weighted average
number of shares,      12,241,599     8,049,500      18,050,000    8,049,500
basic and diluted
                                                                   
Proforma loss per
share, basic and       (0.21 )        (0.25 )        (0.09 )       (0.08 )
diluted
Proforma number of
shares, basic and      18,050,000     18,050,000     18,050,000    18,050,000
diluted (post IPO)



Ardmore Shipping Corporation
Unaudited Condensed Interim Statement of Cash Flows
(Expressed in U.S. dollars, unless otherwise stated)

                                              Twelve months ended
                                                Dec 31, 2013    Dec 31, 2012
OPERATING ACTIVITIES
Net loss                                        (3,842,603 )     (4,539,093 )
Non-cash items:
Depreciation                                    8,388,208        6,195,416
Amortization of deferred dry dock               1,420,814        441,491
expenditure
Share based compensation                        571,321          11,250
Amortization of deferred finance charges        772,787          254,547
Deferred tax (benefit) / expense                —                24,341
Changes in operating assets and
liabilities:
Receivables, trade                              120,980          1,126,119
Working capital advances                        1,039,384        2,098,612
Prepayments                                     (248,092 )       26,518
Advances and deposits                           (1,470,614 )     145,540
Other receivables                               176,449          (104,521 )
Inventories                                     (465,226 )       (44,449 )
Payables, trade                                 1,485,259        324,688
Charter revenue received in advance             955,555          411,705
Other payables                                  3,569            (70,993 )
Amounts due to related parties                  (600,000 )       625,397
Accrued interest on loans                       54,645           17,965
Deferred dry dock expenditure                   (242,263 )       (2,959,280 )
                                                                 
Net cash provided by operating activities       8,120,173        3,985,253
                                                                 
INVESTING ACTIVITIES
Payments for acquisition of vessels and         (63,497,023 )    (1,330,198 )
equipment
Payments for vessels under construction         (81,072,100 )    (13,560,194 )
Payments for other non-current assets           (68,435 )        (51,122 )
                                                                 
Net cash used in investing activities           (144,637,558 )   (14,941,514 )
                                                                 
FINANCING ACTIVITIES
Short-term revolving credit facility            —                (30,265,000 )
Proceeds from long-term debt                    47,030,000       38,700,000
Repayments of long term debt                    (25,270,000 )    (37,200,000 )
Proceeds from capital leases                    31,500,000       —
Repayments of capital leases                    (1,120,985 )     —
Payments for deferred finance charges           (1,333,312 )     (1,719,423 )
Net proceeds from equity offering               128,429,204      —
Payment of dividend                             (1,191,300 )     —
Shareholder contributions                       500              51,314,503
                                                                 
Net cash provided by financing activities       178,044,107      20,830,080
                                                                 
Net increase in cash and cash equivalents       41,526,722       9,873,819
                                                                 
Cash and cash equivalents at the beginning      15,334,123       5,460,304
of the year
                                                                 
Cash and cash equivalents at the end of the     56,860,845       15,334,123
year



Ardmore Shipping Corporation
Unaudited Other Operating Data
(Expressed in U.S. dollars, unless otherwise stated)

                       Twelve months ended          Three months ended
                         Dec 31, 2013  Dec 31, 2012   Dec 31, 2013  Dec 31,
                                                                      2012
ADJUSTED EBITDA^(1)      $ 10,750,788   5,121,602      1,817,766      956,289
                                                                      
AVERAGE DAILY DATA
Fleet time charter
equivalent per           12,850         10,911         12,661         11,191
day^(2)
                                                                      
Fleet operating          6,152          6,103          6,449          6,042
costs per day^(3)
Technical management     379            344            363            341
fees per day^(4)
                                                                      
Total fleet
operating costs per      6,531          6,447          6,812          6,383
day
                                                                      
MR Tankers
“Eco-design”
TCE per day^(2)          15,838         —              15,099         —
Vessel operating         5,906          —              5,897          —
costs per day^(5)
                                                                      
MR Tankers “Eco-mod”
TCE per day^(2)          13,732         13,294         13,944         13,473
Vessel operating         6,892          6,724          7,531          6,459
costs per day^(5)
                                                                      
Chemical Tankers
“Eco-mod”
TCE per day^(2)          10,483         9,108          9,277          9,135
Vessel operating         6,462          6,170          6,703          6,306
costs per day^(5)
                                                                      
FLEET
Average number of
owned operating          7.4            4.5            8.0            6.0
vessels
Average number of
chartered operating      —              1.0            —              —
vessels


     
(1)     Adjusted EBITDA is reconciled under the “Non-GAAP Measures” section
        below.
        Time Charter Equivalent (“TCE”) daily rate is the gross charter rate
        or gross pool rate, as appropriate, per revenue day plus Communication
(2)     Victualing and Entertainment Income (“CVE”). For vessels employed on
        voyage charters, TCE is the net rate after deducting voyage costs
        incurred by commercial managers.
        Fleet operating costs per day are routine operating expenses and
        comprise, crewing, repairs and maintenance, insurance, stores, lube
(3)     oils, communication costs. They do not include additional costs
        related to upgrading or enhancement of the vessels that are not
        capitalized.
(4)     Technical management are fees paid to third-party technical managers.
(5)     Vessel operating costs per day includes technical management fees.
        


Ardmore Shipping Corporation
Fleet List as at February13, 2014

                                                                             Charter
Vessel Name   Type              Dwt      Imo  Built   Built    Flag  Rate $   Charter  Specification
                                                   Date     Country          /         Expires
                                                                             day (1)
In
Operation
Ardmore
Seavaliant      Product/Chemical   49,998    3     Feb-13   Korea     MI     17,149    Feb-15    Eco-design
(2)
Ardmore
Seaventure      Product/Chemical   49,998    3     Jun-13   Korea     MI     15,873    Jun-14    Eco-design
(3)
Ardmore
Seavantage      Product/Chemical   49,997    3     Jan-14   Korea     MI     15,600    Jan-15    Eco-design
(4)
Ardmore
Seamariner      Product            45,726    —     Oct-06   Japan     MI     16,099    Apr-14    Eco-mod
(5)
Ardmore
Seatrader       Product            47,141    —     Dec-02   Japan     MI     14,299    Aug-14    Eco-mod
(6)
Ardmore
Seamaster       Product/Chemical   45,840    3     Sep-04   Japan     MI     14,299    Jul-14    Eco-mod
(7)
Ardmore
Seafarer        Product            45,744    —     Aug-04   Japan     MI     13,783    Jul-14    Eco-mod
(8)
Ardmore
Centurion       Product/Chemical   29,006    2     Nov-05   Korea     MI     13,549    Feb-15    Eco-mod
(9)
Ardmore
Calypso         Product/Chemical   17,589    2     Jan-10   Korea     MI     Pool      N/A       Eco-mod
(10)
Ardmore
Capella         Product/Chemical   17,567    2     Jan-10   Korea     MI     Pool      N/A       Eco-mod
(11)
                                                                                                 
On Order
Ardmore
Seavanguard     Product/Chemical   49,998    3     Feb-14   Korea     MI     15,600    Feb-15    Eco-design
(12)
SPP Hull        Product/Chemical   50,300    3     1Q15     Korea     MI     Pool                Eco-design
S-1162 (13)
SPP Hull        Product/Chemical   50,300    3     2Q15     Korea     MI     Pool                Eco-design
S-1163 (13)
SPP Hull        Product/Chemical   50,300    3     2Q15     Korea     MI     Pool                Eco-design
S-1171 (13)
SPP Hull        Product/Chemical   50,300    3     3Q15     Korea     MI     Pool                Eco-design
S-1172 (13)
HMD Hull        Product/Chemical   37,000    2     1Q15     Korea     MI     TBD                 Eco-design
H-2480 (14)
HMD Hull        Product/Chemical   37,000    2     1Q15     Korea     MI     TBD                 Eco-design
H-2481 (14)
FKA Hull        Product/Chemical   25,000    2     4Q14     Japan     MI     TBD                 Eco-design
N-2062 (15)
FKA Hull        Product/Chemical   25,000    2     1Q15     Japan     MI     TBD                 Eco-design
N-2063 (15)
FKA Hull        Product/Chemical   25,000    2     3Q15     Japan     MI     TBD                 Eco-design
N-2065 (15)
FKA Hull        Product/Chemical   25,000    2     4Q15     Japan     MI     TBD                 Eco-design
N-2067 (15)
                                                                                                 
Total           21                 823,804


      
         This table shows gross charter rates, averaged over the duration, as
(1)      applicable, plus CVE income and does not include commissions payable
         by us at a rate of 1.25%, where applicable.
(2)      On charter at a rate of $17,100, expiring in February 2015. CVE
         income is $1,500 per month.
         On charter at a rate of $19,500 per day for the first 60 days plus
(3)      $15,100 per day thereafter, expiring in June 2014. CVE income is
         $1,500 per month.
         On charter at a rate of $15,600 per day, expiring in January 2015,
(4)      with an option to extend at a market based rate for a second and
         third year.
         On charter at a rate of $16,050, expiring in April 2014, with an
(5)      option to extend at a market based rate. CVE income is $1,500 per
         month.
(6)      On charter at a rate of $14,250, expiring in August 2014. CVE income
         is $1,500 per month.
(7)      On charter at a rate of $14,250 plus an IMO3 premium of up to $250
         per day, expiring in July 2014. CVE income is $1,500 per month.
         On charter at a rate of $13,750 per day plus a performance bonus of
(8)      up to $250 per day, expiring in July 2014. CVE income is $1,000 per
         month.
(9)      On charter at a rate of $13,500, expiring in July 2014 or January
         2015 subject to certain conditions. CVE income is $1,500 per month.
(10)     Employed in a third party commercial pool for chemical tankers.
(11)     Employed in a third party commercial pool for chemical tankers.
         On charter at a rate of $15,600 per day, expiring in February 2015,
(12)     with an option to extend at a market based rate for a second and
         third year.
         SPP Hull S-1162, Hull S-1163, Hull S-1171 and Hull S-1172 are
(13)     expected to begin delivering in February 2015 where they will be
         employed in a third party commercial pool for product tankers.
         HMD Hull H-2480 and Hull H-2481 are expected to begin delivering in
(14)     February 2015 and it is expected they will be employed on a time
         charter or spot arrangement.
         FKA Hull N-2062, Hull N-2063, Hull N-2065 and Hull N-2067 are
(15)     expected to begin delivering in November 2014 and it is expected they
         will be employed on a time charter or spot arrangement.
         

Non-GAAP Measures

This press release describes EBITDA, adjusted EBITDA, adjusted net loss and
adjusted net loss per share, which are not measures prepared in accordance
with U.S. GAAP. These Non-GAAP measures are presented in this press release as
we believe that they provide investors with a means of evaluating and
understanding how Ardmore’s management evaluate 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.


EBITDA &          Twelve months ended            Three months ended
Adjusted EBITDA
                    Dec 31, 2013    Dec 31, 2012   Dec 31, 2013  Dec 31, 2012
Net loss            $ (3,842,603 )   (4,539,093 )   (1,692,684 )   (1,383,216 )
Interest income       (6,059     )   (4,713     )   (1,548     )   (1,757     )
Interest
expense and           3,464,006      2,966,014      460,737        401,168
finance costs
Income tax            33,726         51,237         9,784          29,186
Depreciation          8,388,208      6,195,416      2,324,144      1,542,381
Amortization of
deferred dry         1,420,814     441,491       365,520       365,714    
dock
expenditure
                                                                   
EBITDA                9,458,092      5,110,352      1,465,953      953,476
IPO related
fees and              721,375        —              —              —
expenses
(non-recurring)
Share based
compensation         571,321       11,250        351,813       2,813      
(non-cash)
                                                                   
Adjusted EBITDA     $ 10,750,788    5,121,602     1,817,766     956,289    
                                                                   
                                                    
Adjusted net        Twelve months ended             Three months ended
loss
                    Dec 31, 2013     Dec 31, 2012   Dec 31, 2013   Dec 31, 2012
Net loss            $ (3,842,603 )   (4,539,093 )   (1,692,684 )   (1,383,216 )
IPO related
fees and              721,375        —              —              —
expenses
(non-recurring)
Share based
compensation          571,321        11,250         351,813        2,813
(non-cash)
Deferred
finance fee          179,816       —             —             —          
write off
                                                                   
Adjusted net         (2,370,091 )   (4,527,843 )   (1,340,871 )   (1,380,404 )
loss
                                                                   
Adjusted loss
per share,          $ (0.13      )   (0.25      )   (0.07      )   (0.08      )
basic and
diluted
Number of
shares, basic         18,050,000     18,050,000     18,050,000     18,050,000
and diluted
(post IPO)


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,” “project,” “plan,”
“potential,” “may,” “should,” “expect,” “pending” and similar expressions
identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management’s examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe 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 our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
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 us, the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for tanker vessel capacity, changes in
our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our 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, potential liability from pending or future
litigation, 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
our filings with the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties.

Contact:

Investor Relations Enquiries:
The IGB Group
Mr.Leon Berman, 212-477-8438
Fax: 212-477-8636
lberman@igbir.com
 
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