StealthGas(GASS) - 2025 Q1 - Quarterly Report

First Quarter 2025 Financial and Operating Results Operational and Financial Highlights StealthGas Inc. reported a slight revenue increase in Q1 2025 to $42.0 million, driven by better market conditions, but net income decreased to $14.1 million ($0.38 EPS) from $17.7 million ($0.49 EPS) in Q1 2024, primarily due to higher operating expenses, drydocking costs, and an impairment loss, despite lower interest costs. The company continued its debt reduction strategy, making significant repayments and maintaining strong liquidity, while also pursuing share repurchases Q1 2025 Key Financial Performance This section presents a comparative overview of StealthGas Inc.'s key financial metrics for Q1 2025 versus Q1 2024, highlighting changes in revenues, net income, EPS, and major expense categories Q1 2025 Key Financial Performance (YoY) | Metric | Q1 2024 (USD) | Q1 2025 (USD) | Change (USD) | | :-------------------------------- | :---------- | :---------- | :----- | | Revenues | $41.6 million | $42.0 million | +$0.4 million | | Net Income | $17.7 million | $14.1 million | -$3.6 million | | Basic EPS | $0.49 | $0.38 | -$0.11 | | Time Charter Equivalent (TCE) Revenues | - | $36.9 million | -4.6% | - Revenues increased due to better market conditions and an average of 28.0 vessels owned in Q1 2025 compared to 27.0 vessels in Q1 2024[3][6] - Key expense changes (Q1 2025 vs Q1 2024): - Voyage expenses increased by $2.2 million to $5.1 million, mainly due to increased spot market days, port expenses, and bunkers costs[6] - Vessels' operating expenses increased by $2.0 million to $13.5 million, mainly due to increased crew and maintenance costs[6] - Drydocking costs were $0.4 million in Q1 2025 (nil in Q1 2024)[6] - Impairment loss of $0.5 million recognized in Q1 2025 due to the agreed sale of the vessel Gas Cerberus[6] - Interest and finance costs decreased by $1.8 million to $1.4 million, primarily due to continued debt prepayments[6] Fleet and Debt Management This section details StealthGas Inc.'s debt reduction efforts, liquidity position, and ongoing share repurchase program during Q1 2025 - Debt Repayments: $34.4 million in Q1 2025, with a further $19.2 million in the current quarter of 2025[4] - Unencumbered Vessels: All but one vessel in the fully owned fleet are unencumbered[4] - Cash and Cash Equivalents (incl. restricted cash): $77.1 million as of March 31, 2025[4] - Share Repurchases: $1.8 million spent since the last quarterly announcement; over $21.2 million spent since June 2023 under the current program[4] Fleet Update and Strategic Initiatives The company has secured approximately 70% of its 2025 fleet days under period contracts, ensuring over $165 million in total contracted revenues. Strategic fleet management includes the planned sale of the debt-free vessel "Gas Cerberus" to enhance liquidity and an agreement to acquire the remaining shares in two joint venture vessels, consolidating them into the fully owned fleet Chartering Arrangements and Contracted Revenues This section outlines StealthGas Inc.'s fleet coverage for 2025, total contracted revenues, and recent new or extended charter agreements - 2025 Fleet Coverage: Circa 70% of fleet days for 2025 are secured under period contracts[4][7] - Total Contracted Revenues (all subsequent periods): Approximately $165 million (excluding JV vessels)[4][5] - Contracted Revenues (remainder of 2025): Approximately $72 million[7] - New Charter Agreements: - Eco Dominator: 12-month time charter until March 2026[6] - Eco Nical: 12-month time charter extension until May 2026[6] - Gas Esco: 6-month time charter extension until September 2025[6] Vessel Sales and Joint Venture Changes This section details the planned sale of the vessel Gas Cerberus and the agreement to acquire remaining shares in two joint venture vessels, impacting fleet composition and liquidity - Vessel Sale: Agreement to sell the vessel Gas Cerberus to a third party, with delivery expected in Q2 2025. The vessel is debt-free, and proceeds will contribute to liquidity[7] - Joint Venture Buyback: Agreed in principle to purchase the remaining 49.9% share in Eco Lucidity and Gas Haralambos from a JV partner, expected within June 2025, leading to consolidation into the fully owned fleet[8] - JV Fleet Impact: Following the buyback, only one vessel will remain in a joint venture[8] Management Commentary Board Chairman Michael Jolliffe highlighted a strong start to 2025, expressing confidence in sustaining momentum despite market uncertainties. He emphasized the company's success in eliminating financial risk, achieving a net debt-free position with 27 out of 28 vessels unencumbered, and its commitment to returning value to shareholders through ongoing share repurchases - Q1 2025 Performance: Strong start to the year, underpinning confidence for sustaining momentum throughout 2025[9] - Market Outlook: Expects trade flows to normalize and sentiment to improve as LPG shipping fundamentals remain positive, despite current uncertainties and charterer reluctance for longer-term commitments[9] - Financial Strategy: Steadfast in strategy, having "all but eliminated its financial risk," being net debt-free after over $50 million in debt repayments this year[9] - Fleet Status: 27 out of 28 vessels are unencumbered[9] - Shareholder Returns: Continued share repurchases, spending $1.8 million since March and over $21.2 million since June 2023[9] Company Information and Disclosures About StealthGas Inc. StealthGas Inc. is a Nasdaq-listed ship-owning company specializing in the international LPG shipping sector, operating a fleet of 31 LPG carriers, including three joint venture vessels, with a total capacity of 349,170 cubic meters - Business: Ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry[12] - Fleet Size: 31 LPG carriers, including three Joint Venture vessels, with a total capacity of 349,170 cubic meters (cbm)[12] - Listing: Shares are listed on the Nasdaq Global Select Market and trade under the symbol "GASS"[12] Conference Call Information StealthGas Inc. hosted a conference call on May 28, 2025, at 10:00 am ET to discuss its Q1 2025 results and outlook, with pre-registration and webcast options available for participants - Date & Time: May 28, 2025, at 10:00 am ET[10] - Access: Participants should pre-register to receive dial-in numbers and a personal PIN. A live and archived webcast is available through the STEALTHGAS INC. website (www.stealthgas.com)[10](index=10&type=chunk)[11] Forward-Looking Statements and Risks The report includes forward-looking statements based on current views and assumptions, which are inherently subject to significant uncertainties and contingencies. Key risks that could cause actual results to differ materially include global economic and geopolitical conditions, market fluctuations, operational costs, financing capabilities, and regulatory or political events - Nature: Forward-looking statements reflect current views with respect to future events and financial performance, based on various assumptions[13] - Uncertainties: Assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the company's control[13] - Key Risk Factors: Include strength of world economies, geopolitical conditions (e.g., trade disruptions, conflicts in Ukraine, Israel and Gaza, Red Sea attacks), general market conditions (charter rates, vessel values), operating expenses, ability to obtain financing, regulatory actions, and potential litigation[13] - Further Details: Risks and uncertainties are further described in reports filed with the U.S. Securities and Exchange Commission[14] Company Contact Contact information for StealthGas Inc., including a company representative, phone number, email, and website, is provided for inquiries - Contact Person: Konstantinos Sistovaris[15] - Phone: 00-30-210-6250-001[15] - Email: info@stealthgas.com[15] - Website: www.stealthgas.com[15](index=15&type=chunk) Detailed Financial and Operational Data Fleet Operating Data The company's fleet data for Q1 2025 shows an increase in the average number of vessels and total calendar days compared to Q1 2024. Fleet utilization remained high at 99.2%, although operational utilization slightly decreased to 94.0% due to an increase in spot market days Fleet Data (Q1 2024 vs Q1 2025) | FLEET DATA | Q1 2024 | Q1 2025 | | :-------------------------- | :------ | :------ | | Average number of vessels | 27.04 | 28.00 | | Period end number of owned vessels in fleet | 27 | 28 | | Total calendar days for fleet | 2,461 | 2,520 | | Total voyage days for fleet | 2,439 | 2,500 | | Fleet utilization | 99.1% | 99.2% | | Total charter days for fleet | 2,232 | 2,118 | | Total spot market days for fleet | 207 | 382 | | Fleet operational utilization | 97.7% | 94.0% | Non-GAAP Financial Measures This section defines and reconciles non-GAAP financial measures such as Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EPS. These metrics are used by the company and investors to assess financial performance on a comparable basis, despite not being recognized under U.S. GAAP Definitions and Purpose This section provides the definitions and explains the purpose of various non-GAAP financial measures used by StealthGas Inc. for performance assessment - Adjusted Net Income: Net income before loss/gain on derivatives (excluding swap interest paid/received), impairment loss, net gain/loss on sale of vessels, and share-based compensation[18] - EBITDA: Net income before interest and finance costs, interest income, and depreciation[18] - Adjusted EBITDA: Net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels, share-based compensation, and loss/gain on derivatives[18] - Adjusted EPS: Adjusted net income divided by the weighted average number of shares[19] - Purpose: These measures are included as a basis for assessing financial performance, allowing for comparable period-to-period performance and better evaluation of operating performance[19] - GAAP Disclaimer: EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS are not recognized measurements under U.S. GAAP and may not be comparable to those reported by other companies[21] Reconciliation Tables This section presents tables reconciling GAAP net income and EPS to their respective adjusted non-GAAP counterparts, including EBITDA and Adjusted EBITDA Reconciliation of Non-GAAP Measures (Q1 2024 vs Q1 2025) | (Expressed in United States Dollars, except number of shares) | March 31st, 2024 (USD) | March 31st, 2025 (USD) | | :---------------------------------------------------------- | :--------------- | :--------------- | | Net Income - Adjusted Net Income | | | | Net income | 17,729,716 | 14,107,680 | | Adjusted Net Income | 19,137,582 | 16,136,482 | | Net income – EBITDA | | | | Net income | 17,729,716 | 14,107,680 | | EBITDA | 26,637,757 | 21,424,274 | | Net income - Adjusted EBITDA | | | | Net income | 17,729,716 | 14,107,680 | | Adjusted EBITDA | 27,837,496 | 23,453,076 | | EPS - Adjusted EPS | | | | EPS - Basic | 0.49 | 0.38 | | Adjusted EPS – Basic | 0.53 | 0.44 | Unaudited Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements for Q1 2025 include the statements of income, balance sheets, and cash flows. These statements detail a year-over-year decrease in net income, a reduction in total assets and liabilities with an increase in stockholders' equity, and increased cash flow from operations offset by significant loan repayments in financing activities Statements of Income This section provides the unaudited condensed consolidated statements of income, detailing revenues, expenses, and net income for Q1 2025 compared to Q1 2024 Unaudited Condensed Consolidated Statements of Income (Q1 2024 vs Q1 2025) | | Three Months Period Ended March 31, 2024 (USD) | Three Months Period Ended March 31, 2025 (USD) | | :---------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenues | 41,563,908 | 42,025,987 | | Total expenses | 24,048,870 | 29,403,021 | | Income from operations | 17,515,038 | 12,622,966 | | Net Income | 17,729,716 | 14,107,680 | | Earnings per share - Basic | 0.49 | 0.38 | | Weighted average number of shares - Basic | 35,119,500 | 35,725,720 | Balance Sheets This section presents the unaudited condensed consolidated balance sheets, outlining assets, liabilities, and stockholders' equity as of December 31, 2024, and March 31, 2025 Unaudited Condensed Consolidated Balance Sheets (Dec 31, 2024 vs Mar 31, 2025) | | December 31, 2024 (USD) | March 31, 2025 (USD) | | :----------------------------------- | :---------------- | :------------- | | Total current assets | 92,070,405 | 86,151,555 | | Total non current assets | 640,169,459 | 631,504,491 | | Total assets | 732,239,864 | 717,656,046 | | Total current liabilities | 43,943,632 | 45,369,564 | | Total non current liabilities | 61,769,418 | 30,919,710 | | Total liabilities | 105,713,050 | 76,289,274 | | Total stockholders' equity | 626,526,814 | 641,366,772 | - Cash and cash equivalents decreased from $80.7 million (Dec 31, 2024) to $74.4 million (Mar 31, 2025)[24] - Long-term debt significantly reduced from $61.6 million (Dec 31, 2024) to $30.3 million (Mar 31, 2025)[24] Statements of Cash Flows This section details the unaudited condensed consolidated statements of cash flows, showing cash movements from operating, investing, and financing activities for Q1 2025 versus Q1 2024 Unaudited Condensed Consolidated Statements of Cash Flows (Q1 2024 vs Q1 2025) | | Three Months Period Ended March 31, 2024 (USD) | Three Months Period Ended March 31, 2025 (USD) | | :---------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | 23,677,023 | 27,731,021 | | Net cash used in investing activities | (61,735,591) | — | | Net cash provided by/(used in) financing activities | 37,938,824 | (35,125,423) | | Net decrease in cash, cash equivalents and restricted cash | (119,744) | (7,394,402) | | Cash, cash equivalents and restricted cash at end of period | 83,635,957 | 77,126,748 | - Loan repayments were $34.4 million in Q1 2025, compared to $32.0 million in Q1 2024[25] - Stock repurchases amounted to $1.1 million in Q1 2025, compared to $0.3 million in Q1 2024[25]