Dorian LPG(LPG) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements for the three months ended June 30, 2024, show total revenues of $114.4 million and net income of $51.3 million. Total assets decreased to $1.91 billion from $1.84 billion at March 31, 2024, primarily due to a decrease in cash and cash equivalents. Total liabilities increased slightly to $791.9 million. The company generated $41.2 million in cash from operations and paid $40.4 million in dividends Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Statements of Operations (Three months ended June 30) | Financial Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $114,353,042 | $111,562,907 | | Operating Income | $55,473,525 | $55,622,307 | | Net Income | $51,288,140 | $51,721,137 | | Earnings Per Share (Basic) | $1.25 | $1.29 | | Earnings Per Share (Diluted) | $1.25 | $1.28 | Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $353,286,506 | $282,507,971 | | Total Assets | $1,911,790,897 | $1,837,650,165 | | Total Liabilities | $791,925,962 | $814,117,082 | | Total Shareholders' Equity | $1,119,864,935 | $1,023,533,083 | Condensed Consolidated Statements of Cash Flows (Three months ended June 30) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,224,784 | $63,265,349 | | Net cash used in investing activities | ($1,251,982) | ($2,344,946) | | Net cash provided by/(used in) financing activities | $30,830,300 | ($54,052,986) | Notes to Unaudited Condensed Consolidated Financial Statements - As of June 30, 2024, the company's fleet consists of twenty-five VLGCs. The company is also constructing a new 93,000 cbm VLGC/Ammonia Carrier expected for delivery in Q2 2026[24] - The company holds a 50% interest in the Helios LPG Pool LLC, a joint venture with MOL Energia. As of June 30, 2024, the Helios Pool operated thirty VLGCs, including twenty-four from Dorian's fleet. Net receivables from the Helios Pool were $104.5 million[40][42][43] Total Debt Obligations | Date | Total Debt Obligations | Debt Obligations (Net of deferred fees) | | :--- | :--- | :--- | | June 30, 2024 | $597,107,209 | $592,065,493 | | March 31, 2024 | $610,451,757 | $605,092,530 | - On June 7, 2024, the company issued 2 million shares at $44.50 per share, generating gross proceeds of $89.0 million[69] - The Board of Directors declared an irregular cash dividend of $1.00 per share on April 25, 2024, totaling $40.6 million, which was paid on May 29, 2024[67] - As of June 30, 2024, the company has a commitment of $98.4 million for the construction of a newbuilding VLGC/AC and $2.5 million for scrubbers and other vessel upgrades[85][86] - Subsequent to the quarter end, on July 24, 2024, the Board declared another irregular cash dividend of $1.00 per share, totaling $42.6 million, payable in August 2024[90] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management reports a 2.5% increase in total revenues to $114.4 million for the quarter ended June 30, 2024, compared to the prior year, driven by a larger fleet size, although this was partially offset by lower fleet utilization (90.4% vs 98.0%). Average Time Charter Equivalent (TCE) rates per operating day increased to $55,228. Net income remained stable at $51.3 million. The company strengthened its liquidity with $84.5 million net proceeds from a common stock issuance and ended the quarter with $353.3 million in cash Overview - As of July 25, 2024, Dorian's fleet consists of 25 VLGCs with an aggregate capacity of approximately 2.1 million cbm and an average age of 7.9 years[92] - The company is constructing a new 93,000 cbm VLGC/Ammonia Carrier, expected for delivery in the second calendar quarter of 2026[92] - Fifteen of the company's ECO VLGCs are fitted with scrubbers, allowing them to burn less refined, cheaper fuel and potentially earn higher TCE rates[93] - As of July 25, 2024, twenty-four of the twenty-five VLGCs were employed in the Helios Pool, a commercial pool operated as a joint venture with MOL Energia[94] Results of Operations Revenue Comparison (Three months ended June 30) | Revenue Type | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net pool revenues—related party | $109,407,054 | $104,386,551 | 4.8% | | Time charter revenues | $3,414,351 | $6,423,472 | (46.8)% | | Total Revenues | $114,353,042 | $111,562,907 | 2.5% | - The 2.5% increase in revenue was primarily due to an increase in fleet size, partially offset by a reduction in fleet utilization from 98.0% in Q2 2023 to 90.4% in Q2 2024[103] - Average TCE rates per operating day increased by $4,072 to $55,228, but TCE rates per available day slightly decreased to $49,911 from $50,164 year-over-year[103] - Vessel operating expenses increased by 3.2% to $20.5 million, or $10,717 per vessel per calendar day, mainly due to higher costs for spares, stores, and crew wages[104] - General and administrative expenses rose 13.1% to $10.4 million, driven by increases in stock-based compensation and cash bonuses[105] Operating Statistics and Reconciliation of GAAP to non-GAAP Measures Key Operating Statistics (Three months ended June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Available days | 2,275 | 2,219 | | Operating days | 2,056 | 2,175 | | Fleet utilization | 90.4% | 98.0% | | Time charter equivalent rate | $55,228 | $51,156 | Reconciliation of Net Income to Adjusted EBITDA | (in U.S. dollars) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $51,288,140 | $51,721,137 | | Interest and finance costs | $9,518,430 | $10,403,849 | | Unrealized (gain)/loss on derivatives | $421,627 | ($2,859,274) | | Realized gain on interest rate swaps | ($1,717,249) | ($1,847,764) | | Stock-based compensation expense | $1,275,459 | $776,607 | | Depreciation and amortization | $17,170,986 | $16,655,317 | | Adjusted EBITDA | $77,957,393 | $74,849,872 | Liquidity and Capital Resources - As of June 30, 2024, the company had cash and cash equivalents of $353.3 million[117] - Primary sources of capital during the quarter were $84.5 million in net proceeds from a common stock issuance and $41.2 million in cash from operations[118][121] - Total long-term debt, net of deferred financing fees, was $592.1 million as of June 30, 2024, with $53.7 million scheduled for repayment within the next twelve months[118] - The company paid an irregular cash dividend of $1.00 per share, totaling $40.4 million, on May 29, 2024[123] - As of June 30, 2024, the company had approximately $98.4 million in outstanding commitments for its newbuilding VLGC/AC[135] Quantitative and Qualitative Disclosures About Market Risk The company is exposed to interest rate risk from its long-term debt, a portion of which is tied to the Secured Overnight Financing Rate (SOFR). To mitigate this, the company has hedged $160 million of amortizing principal, representing 80% of the outstanding debt under its 2023 A&R Debt Facility. A hypothetical 20 basis point change in SOFR would impact annual interest expense on the unhedged portion by approximately $0.1 million - The company has hedged $160 million of amortizing principal under the 2023 A&R Debt Facility, covering 80% of its outstanding balance, to mitigate interest rate risk from fluctuating SOFR[144] - A hypothetical 20 basis point (0.20%) increase or decrease in SOFR would change the company's annual interest expense on its unhedged debt by approximately $0.1 million[144] Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2024, concluding they are effective with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[145] - No changes were made during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[146] PART II. OTHER INFORMATION Legal Proceedings The company is subject to legal proceedings and claims in the ordinary course of business but is not aware of any material claims that would require disclosure or provision in the financial statements - The company is not aware of any material legal claims that would require disclosure or the establishment of a provision in its financial statements[148] Risk Factors This section updates risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2024, with no new specific risks detailed in this quarterly report - The report refers to the risk factors detailed in the Annual Report on Form 10-K for the year ended March 31, 2024, indicating no new material risk factors are being introduced in this quarterly report[149] Other Information During the three months ended June 30, 2024, no director or officer of the company adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[150]