Le Lézard
Classified in: Transportation, Business
Subjects: ERN, CCA, DIV

Ardmore Shipping Corporation Announces Financial Results for the Three and Nine Months Ended September 30, 2017


HAMILTON, Bermuda, Nov. 1, 2017 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company" or "we") today announced results for the three and nine months ended September 30, 2017.

Highlights

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

"Short-term oil market dynamics continue to dominate the product tanker market; while this has been a significant negative for some time, we believe this is shifting to the positive with the impact of Hurricane Harvey abating and global oil inventories heading toward normal levels after an extended period of destocking. As a consequence, we believe the product tanker market is poised for a seasonal rebound this winter.

Beyond these near-term factors, underlying fundamentals are positive: global oil demand growth is strong and export-oriented refinery capacity is increasing to meet this demand. On the back of this, MR tonne mile demand growth is set to continue at about 5%, while supply growth is estimated to be 1.8% for 2017 and only 1.1% for 2018, which should rapidly tighten the MR supply-demand balance. In addition, shipyards and shipowners continue to be capital constrained and, as a consequence, we don't anticipate any major ordering activity until a recovery is well underway.

Meanwhile, our focus continues to be on operating performance and cost efficiency. We are pleased to announce the acquisition of a high-quality Japanese MR built 2008; while this is just a single-ship acquisition, together with attractive lease financing, the transaction will provide a meaningful boost to earnings and cashflow and highlights our disciplined approach to growth and capital allocation.

We believe that a shift of short-term oil market dynamics, coupled with underlying strong demand growth and declining supply growth, is setting the stage for a seasonal rebound in the MR market. Ardmore's strong balance sheet, modern fleet, and industry-leading cost structure put us in a very strong position to take advantage of a cyclical charter market recovery and to generate highly attractive returns and value for our shareholders."

Summary of Recent and Third Quarter 2017 Events

Fleet

Fleet Operations and Employment

The Company has 27 vessels currently in operation, comprising 21 Eco MR tankers ranging from 45,000 Dwt to 49,999 Dwt (15 Eco-Design and six Eco-Mod) and six Eco-Design IMO 2 product / chemical tankers ranging from 25,000 Dwt to 37,800 Dwt.

MR Tankers (45,000 Dwt ? 49,999 Dwt)

At the end of the third quarter of 2017, the Company had 21 Eco MR tankers trading in the spot market or in pools. The 21 spot or pool trading MR tankers, comprising 15 Eco-Design and six Eco-Mod, earned an average of $12,970 per day in the quarter. Overall for the quarter, our 15 Eco-Design MR tankers earned $12,938 per day, and our six Eco-Mod MR tankers earned $12,534 per day.

In the fourth quarter of 2017, the Company expects to have all revenue days for its MR Eco-Design and MR Eco-Mod tankers employed in the spot market or in pools. As of November 1, 2017, the Company has fixed approximately 35% of its total MR spot and pool revenue days for the fourth quarter 2017 at approximately $12,500 per day.

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

At the end of the third quarter of 2017, the Company had six Eco-Design IMO 2 product / chemical tankers in operation, all of which were trading spot or in pools. During the third quarter of 2017, across all employment types, the Company's six Eco-Design product / chemical vessels earned an average daily rate of $10,768 per day in the quarter.

In the fourth quarter of 2017, the Company expects to have all of its revenue days for its Eco-Design IMO 2 product / chemical tankers employed in the spot market or in pools. As of November 1, 2017, the Company has fixed approximately 35% of its Eco-Design IMO 2 product / chemical tankers spot and pool revenue days for the fourth quarter 2017 at approximately $12,000 per day.

Drydocking

The Company had 12 drydock days in the third quarter of 2017. Ardmore expects approximately 20 scheduled drydock days in the fourth quarter of 2017.

Dividend

Based on the Company's policy of paying out dividends equal to 60% of earnings from continuing operations, the Company's Board of Directors has not declared a dividend for the quarter ended September 30, 2017, in which the Company experienced a loss from continuing operations of $4.6 million. The Company did not pay out dividends for the quarter ended September 30, 2016. The Company paid out $0.27 per share for the full year 2016. The Company's Board of Directors reaffirmed its intention to maintain a policy of paying out dividends equal to 60% of earnings from continuing operations moving forward. Earnings from continuing operations is defined as earnings per share ("EPS") reported under U.S. GAAP, as adjusted for unrealized and realized gains and losses and extraordinary items.

Results for the Three Months Ended September 30, 2017 and 2016

The Company reported a net loss of $4.6 million, or $0.14 basic and diluted loss per share, for the three months ended September 30, 2017, as compared to a net loss of $4.8 million, or $0.14 basic and diluted loss per share, for the three months ended September 30, 2016. For the three months ended September 30, 2017, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $10.1 million, an increase of $2.9 million from $7.2 million for the three months ended September 30, 2016.

Results for the Nine Months Ended September 30, 2017 and 2016

The Company reported a net loss of $8.7 million, or $0.26 basic and diluted loss per share, for the nine months ended September 30, 2017, as compared to a net income of $7.4 million, or $0.26 basic and diluted earnings per share, for the nine months ended September 30, 2016. For the nine months ended September 30, 2017, the Company reported EBITDA (see "Non-GAAP Measures" section below) of $34.7 million, a decrease of $8.6 million from $43.3 million for the nine months ended September 30, 2016.

Management's Discussion and Analysis of Financial Results for the Three Months Ended September 30, 2017 and 2016

Revenue. Revenue for the three months ended September 30, 2017 was $48.7 million, an increase of $10.7 million from $38.0 million for the three months ended September 30, 2016.

The average number of owned vessels increased to 27.0 for the three months ended September 30, 2017, from 22.7 for the three months ended September 30, 2016, resulting in revenue days of 2,467 for the three months ended September 30, 2017, as compared to 2,046 for the three months ended September 30, 2016.

We had 19 and 16 vessels employed directly in the spot market as at September 30, 2017 and September 30, 2016, respectively. For spot chartering arrangements, we had 1,731 revenue days for the three months ended September 30, 2017, as compared to 1,016 for the three months ended September 30, 2016. This increase in revenue days derived from spot chartering arrangements resulted in an increase in revenue of $15.8 million, while movements in spot rates resulted in an increase in revenue of $0.9 million.

We had eight and 11 vessels employed under time charter and pool arrangements as at September 30, 2017 and September 30, 2016, respectively. Revenue days derived from time charter and pool arrangements were 736 for the three months ended September 30, 2017, as compared to 1,030 for the three months ended September 30, 2016. The decrease in revenue days in time charter and pool arrangements resulted in a decrease in revenue of $4.5 million, while a decrease in pool earnings for the quarter ended September 30, 2017 resulted in a decrease in revenue of $1.5 million.

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

For vessels employed directly in the spot market, revenue is recognized on a gross freight basis, while under time chartering and pool arrangements, the charterer typically pays voyage expenses and revenue is recognized on a net basis.

Commissions and Voyage Related Costs. Commissions and voyage related costs were $18.3 million for the three months ended September 30, 2017, an increase of $8.3 million from $10.0 million for the three months ended September 30, 2016. Commissions and voyage related costs increased due to the increased number of revenue days for the three months ended September 30, 2017, and in particular, the increased number of revenue days derived from spot charter arrangements for which we typically are responsible for all voyage expenses as opposed to the charterer. Revenue days increased to 2,467 for the three months ended September 30, 2017, as compared to 2,046 for the three months ended September 30, 2016. For spot chartering arrangements, we had 1,731 revenue days for the three months ended September 30, 2017, as compared to 1,016 for the three months ended September 30, 2016.

TCE Rate. The average TCE rate for our fleet was $12,376 per day for the three months ended September 30, 2017, a decrease of $1,513 per day from $13,889 per day for the three months ended September 30, 2016. The decrease in average TCE rate was the result of lower average time charter and spot rates for the three months ended September 30, 2017.

Vessel Operating Expenses. Vessel operating expenses were $16.3 million for the three months ended September 30, 2017, an increase of $2.6 million from $13.7 million for the three months ended September 30, 2016. This increase is primarily due to an increase in the number of vessels in operation for the three months ended September 30, 2017. Due to the nature of this expenditure, vessel operating expenses are prone to fluctuations between periods. Fleet operating costs per day, including technical management fees, were $6,538 for the three months ended September 30, 2017, as compared to $6,541 for the three months ended September 30, 2016.

Depreciation. Depreciation expense for the three months ended September 30, 2017 was $8.6 million, an increase of $1.3 million from $7.3 million for the three months ended September 30, 2016. The increase is primarily due to an increase in the average number of owned vessels to 27.0 for the three months ended September 30, 2017, from 22.7 for the three months ended September 30, 2016.

Amortization of Deferred Drydock Expenditure. Amortization of deferred drydock expenditure for the three months ended September 30, 2017 was $0.8 million, consistent with $0.8 million for the three months ended September 30, 2016. The capitalized costs of drydockings for a given vessel are depreciated on a straight-line basis to the next scheduled drydocking of the vessel.

General and Administrative Expenses: Corporate. Corporate-related general and administrative expenses for the three months ended September 30, 2017 were $3.2 million, a decrease of $0.4 million from $3.6 million for the three months ended September 30, 2016. This decrease reflects a reduction in stock-based compensation expense in the three months ended September 30, 2017 compared to the three months ended September 30, 2016.

General and Administrative Expenses: Commercial and Chartering. Commercial and chartering expenses are the expenses attributable to our chartering and commercial operations departments in connection with our spot trading activities. Commercial and chartering expenses for the three months ended September 30, 2017 were $0.7 million, an increase of $0.2 million from $0.5 million for the three months ended September 30, 2016. This increase reflects the expansion of chartering and commercial activities in our Singapore and Houston offices, and an increased headcount in the commercial and chartering departments for the three months ended September 30, 2017.

Interest Expense and Finance Costs. Interest expense and finance costs include loan interest, capital lease interest, and amortization of deferred financing fees, and are net of capitalized interest. Interest expense and finance costs for the three months ended September 30, 2017 were $5.4 million, as compared to $3.9 million for the three months ended September 30, 2016. Cash interest expense increased by $1.5 million to $4.8 million for the three months ended September 30, 2017, from $3.3 million for the three months ended September 30, 2016. This increase in cash interest expense is attributable to an increased average LIBOR during the three months ended September 30, 2017 compared to the three months ended September 30, 2016 as well as a change in debt structure due to the new capital leases. Amortization of deferred financing charges for the three months ended September 30, 2017 was $0.6 million, as compared to $0.6 million for the three months ended September 30, 2016.

Liquidity

As of September 30, 2017, the Company had $45.8 million (December 31, 2016: $56.0 million) available in cash and cash equivalents. The following debt and capital lease liabilities (net of deferred finance fees) were outstanding as of the dates indicated:

 


As of


Sept 30, 2017

Dec 31, 2016

Debt

402,879,854

453,213,106

Capital Leases

43,117,876

9,130,650

Total

445,997,730

462,343,756

 

In October 2017, we entered into a $15 million revolving credit facility, further enhancing our financial flexibility. The facility is available for drawdown in the fourth quarter.

Conference Call

The Company plans to have a conference call on November 1, 2017 at 10:00 a.m. Eastern Time to discuss its results for the quarter ended September 30, 2017. All interested parties are invited to listen to the live conference call and slide presentation by choosing from the following options:

  1. By dialing 844-492-3728 (U.S.) or 412-542-4189 (International) and referencing "Ardmore Shipping."
  2. By accessing the live webcast at Ardmore Shipping's website at www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, an audio replay of the call will be available through November 8, 2017 at 877-344-7529 or 412-317-0088. Enter the passcode 10113800 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore owns and operates a fleet of MR product / chemical tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of tankers.

Ardmore's core strategy is to develop a modern, high-quality fleet of product / chemical tankers, building key long-term commercial relationships and maintaining its cost advantage in assets, operations and overhead, while creating significant synergies and economies of scale as the Company grows. Ardmore provides its services to customers through voyage charters, commercial pools, and time charters, and enjoys close working relationships with key commercial and technical management partners.

 

 

Ardmore Shipping Corporation

Unaudited Condensed Consolidated Balance Sheet

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



As at

ASSETS

Sept 30, 2017


Dec 31, 2016

Current assets




Cash and cash equivalents

45,814,043


55,952,873

Receivables, trade

28,784,479


23,148,782

Working capital advances

3,450,000


3,300,000

Prepayments

1,014,020


803,003

Advances and deposits

5,019,298


3,136,362

Other receivables

-


82,636

Inventories

9,150,686


7,339,252

Total current assets

93,232,526


93,762,908





Non-current assets




Vessels and vessel equipment, net

760,280,172


785,461,415

Deferred drydock expenditure, net

4,127,718


3,232,293

Leasehold improvements, net

460,115


488,561

Other non-current assets, net

3,610,085


697,546

Total non-current assets

768,478,090


789,879,815





TOTAL ASSETS

861,710,616


883,642,723





LIABILITIES AND EQUITY




Current liabilities




Payables, trade

17,790,162


14,448,043

Charter revenue received in advance

-


507,780

Other payables

51,113


5,354

Accrued interest on loans

1,919,970


2,067,991

Current portion of long-term debt

36,487,931


41,827,480

Current portion of capital lease obligations

3,299,099


159,028

Total current liabilities

59,548,275


59,015,676





Non-current liabilities




Non-current portion of long-term debt

366,391,923


411,385,626

Non-current portion of capital lease obligations

39,818,777


8,971,622

Total non-current liabilities

406,210,700


420,357,248





Equity




Share capital

340,613


340,613

Additional paid in capital

405,622,042


405,279,257

Treasury stock

(4,272,477)


(4,272,477)

Accumulated (deficit) / surplus

(5,738,537)


2,922,406

Total equity

395,951,641


404,269,799





TOTAL LIABILITIES AND EQUITY

861,710,616


883,642,723

 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Operations

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




Three months ended


Nine months ended



Sept 30, 2017


Sept 30, 2016


Sept 30, 2017


Sept 30, 2016

REVENUE









Revenue


48,652,951


37,969,400


148,168,757


121,224,907










OPERATING EXPENSES









Commissions and voyage related costs


18,299,117


10,011,629


55,199,927


23,762,818

Vessel operating expenses


16,330,356


13,739,022


46,786,299


40,290,408

Depreciation


8,638,739


7,340,499


25,625,382


21,578,136

Amortization of deferred drydock expenditure


771,037


771,282


1,971,213


2,050,091

General and administrative expenses









Corporate


3,244,179


3,554,134


9,484,195


10,030,701

Commercial and chartering


703,583


470,155


2,012,334


1,235,947

Total operating expenses


47,987,011


35,886,721


141,079,350


98,948,101










Operating Income


665,940


2,082,679


7,089,407


22,276,806










Interest expense and finance costs


(5,425,243)


(3,901,112)


(16,029,527)


(12,294,821)

Interest income


136,198


66,174


327,016


107,425

Gain on disposal of vessels


-


-


-


451,962

Loss on asset held for sale


-


(3,028,416)


-


(3,028,416)










(Loss) / income before taxes


(4,623,105)


(4,780,675)


(8,613,104)


7,512,956










Income tax


(16,500)


(19,250)


(47,839)


(77,250)










Net (loss) / income


(4,639,605)


(4,799,925)


(8,660,943)


7,435,706










(Loss) / Earnings per share, basic and diluted


(0.14)


(0.14)


(0.26)


0.26

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


(0.14)


(0.05)


(0.26)


0.35

Weighted average number of shares outstanding, basic and diluted


33,575,610


33,518,013


33,575,610


28,988,963

 

(1)

Earnings per share from continuing operations is a non-GAAP measure and is defined and reconciled under the "Non-GAAP Measures" section below.

 

 

Ardmore Shipping Corporation

Unaudited Condensed Statement of Cash Flows

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




Nine months ended



Sept 30, 2017


Sept 30, 2016

OPERATING ACTIVITIES





Net (loss) / income


(8,660,943)


7,435,706

Non-cash items:





Depreciation


25,625,383


21,578,136

Amortization of deferred drydock expenditure


1,971,213


2,050,091

Share based compensation


342,785


978,672

Loss on disposal of vessels


-


2,576,454

Amortization of deferred finance charges


2,423,720


2,072,562

Changes in operating assets and liabilities:





Receivables, trade


(5,635,697)


4,719,464

Working capital advances


(150,000)


375,000

Prepayments


(211,017)


(27,201)

Advances and deposits


(1,882,936)


(2,970,488)

Other receivables


82,636


918

Inventories


(1,811,434)


(2,618,531)

Payables, trade


3,342,119


(1,243,784)

Charter revenue received in advance


(507,780)


417,050

Other payables


45,759


(33,133)

Accrued interest on loans


(148,021)


147,001

Deferred drydock expenditure


(2,866,638)


(2,899,096)

Net cash provided by operating activities


11,959,149


32,558,821






INVESTING ACTIVITIES





Payments for acquisition of vessels and equipment


(259,035)


(145,533,463)

Net proceeds from sale of vessels


-


37,612,414

Deposit for vessel acquisition


-


(2,775,000)

Payments for leasehold improvements


(12,277)


(493,100)

Payments for other non-current assets


(176,917)


(345,993)

Net cash used in investing activities


(448,229)


(111,535,142)






FINANCING ACTIVITIES





Proceeds from long-term debt


-


92,636,000

Repayments of long-term debt


(52,551,675)


(19,698,260)

Proceeds from capital leases


33,118,525


-

Repayments of capital leases


(1,393,373)


(27,097,348)

Payments for deferred finance charges


(823,227)


(5,774,351)

Net proceeds from equity offering


-


64,119,332

Repurchase of common stock


-


(2,993,931)

Payment of dividend


-


(9,354,022)

Net cash (used in) / provided by financing activities


(21,649,750)


91,837,420






Net (decrease) / increase in cash and cash equivalents


(10,138,830)


12,861,099






Cash and cash equivalents at the beginning of the year


55,952,873


40,109,382






Cash and cash equivalents at the end of the period


45,814,043


52,970,481

 

 

Ardmore Shipping Corporation

Unaudited Other Operating Data

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




Three months ended


Nine months ended



Sept 30, 2017


Sept 30, 2016


Sept 30, 2017


Sept 30, 2016

EBITDA (1)


10,075,716


7,166,044


34,686,002


43,328,579










AVERAGE DAILY DATA









Fleet time charter equivalent per day (2)


12,376


13,889


12,751


15,796










Fleet operating costs per day (3)


6,157


6,147


5,923


6,030

Technical management fees per day (4)


381


394


385


255



6,538


6,541


6,308


6,285










MR Tankers Spot & Pool TCE per day (2)


12,970


13,284


13,341


15,944










MR Tankers Eco-Design









TCE per day (2)


12,938


14,769


13,190


16,543

Vessel operating costs per day (5)


6,341


6,727


6,190


6,113










MR Tankers Eco-Mod









TCE per day (2)


12,534


12,258


12,913


15,141

Vessel operating costs per day (5)


7,175


6,676


6,583


6,563










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









TCE per day (2)


10,768


14,432


11,468


16,542

Vessel operating costs per day (5)


6,392


6,240


6,330


6,195



















FLEET









Upgrades and enhancements expensed


90,840


87,993


289,309


448,817










Average number of owned operating vessels


27.0


22.7


27.0


23.1

 

(1)

EBITDA is a non-GAAP measure and is defined and reconciled to the most directly comparable GAAP measure under the "Non-GAAP Measures" section below.

(2)

Time Charter Equivalent ("TCE") daily rate is the gross charter rate or gross pool rate, as applicable, per revenue day plus Communication, Victualing and Entertainment Income ("CVE"). Revenue days are the total number of calendar days the vessels are in our possession less off-hire days generally associated with drydocking or repairs. For vessels employed on voyage charters, TCE is the net rate after deducting voyage costs incurred, including all commissions and pool administration fees. For MR Tankers Spot & Pool TCE is reported on a discharge to discharge basis.

(3)

Fleet operating costs per day are routine operating expenses and comprise crewing, repairs and maintenance, insurance, stores, lube oils and communication costs. They do not include additional costs related to upgrading or enhancement of the vessels that are not capitalized.

(4)

Technical management fees are fees paid to third-party technical managers.

(5)

Vessel operating costs per day include technical management fees.

 

 

Ardmore Shipping Corporation

Fleet List as at November 1, 2017


Vessel Name

Type

Dwt Tonnes

IMO

Built

Country

Flag

Specification

Ardmore Seavaliant

Product/Chemical

49,998

2/3

Feb-13

Korea

MI

Eco-design

Ardmore Seaventure

Product/Chemical

49,998

2/3

Jun-13

Korea

MI

Eco-design

Ardmore Seavantage

Product/Chemical

49,997

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Seavanguard

Product/Chemical

49,998

2/3

Feb-14

Korea

MI

Eco-design

Ardmore Sealion

Product/Chemical

49,999

2/3

May-15

Korea

MI

Eco-design

Ardmore Seafox

Product/Chemical

49,999

2/3

Jun-15

Korea

MI

Eco-design

Ardmore Seawolf

Product/Chemical

49,999

2/3

Aug-15

Korea

MI

Eco-design

Ardmore Seahawk

Product/Chemical

49,999

2/3

Nov-15

Korea

MI

Eco-design

Ardmore Endeavour

Product/Chemical

49,997

2/3

Jul-13

Korea

MI

Eco-design

Ardmore Enterprise

Product/Chemical

49,453

2/3

Sep-13

Korea

MI

Eco-design

Ardmore Endurance

Product/Chemical

49,466

2/3

Dec-13

Korea

MI

Eco-design

Ardmore Encounter

Product/Chemical

49,478

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Explorer

Product/Chemical

49,494

2/3

Jan-14

Korea

MI

Eco-design

Ardmore Exporter

Product/Chemical

49,466

2/3

Feb-14

Korea

MI

Eco-design

Ardmore Engineer

Product/Chemical

49,420

2/3

Mar-14

Korea

MI

Eco-design

Ardmore Seafarer

Product/Chemical

45,744

3

Aug-04

Japan

MI

Eco-mod

Ardmore Seatrader

Product

47,141

?

Dec-02

Japan

MI

Eco-mod

Ardmore Seamaster

Product/Chemical

45,840

3

Sep-04

Japan

MI

Eco-mod

Ardmore Seamariner

Product/Chemical

45,726

3

Oct-06

Japan

MI

Eco-mod

Ardmore Sealeader

Product

47,463

?

Aug-08

Japan

MI

Eco-mod

Ardmore Sealifter

Product

47,472

?

Jul-08

Japan

MI

Eco-mod

Ardmore Dauntless

Product/Chemical

37,764

2

Feb-15

Korea

MI

Eco-design

Ardmore Defender

Product/Chemical

37,791

2

Feb-15

Korea

MI

Eco-design

Ardmore Cherokee

Product/Chemical

25,215

2

Jan-15

Japan

MI

Eco-design

Ardmore Cheyenne

Product/Chemical

25,217

2

Mar-15

Japan

MI

Eco-design

Ardmore Chinook

Product/Chemical

25,217

2

Jul-15

Japan

MI

Eco-design

Ardmore Chippewa

Product/Chemical

25,217

2

Nov-15

Japan

MI

Eco-design

Total

27

1,202,568







 

 

Non-GAAP Measures

This press release describes EBITDA, adjusted EBITDA and earnings per share from continuing operations, which are not measures prepared in accordance with U.S. GAAP and are reconciled below. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before certain items that Ardmore believes are not representative of its operating performance. Earnings per share from continuing operations is defined as earnings per share ("EPS") reported under U.S. GAAP as adjusted for unrealized and realized gains and losses and extraordinary items.

These non-GAAP measures are presented in this press release as the Company believes that it provides investors with a means of evaluating and understanding how Ardmore's management evaluates operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. In addition, these non-GAAP measures do not have a standardized meaning, and are therefore unlikely to be comparable to similar measures presented by other companies. All amounts in the tables below are expressed in U.S. dollars, unless otherwise stated.

 

Reconciliation of net (loss) / income to
EBITDA


Three months ended


Nine months ended



Sept 30, 2017


Sept 30, 2016


Sept 30, 2017


Sept 30, 2016










Net (loss) / income


(4,639,605)


(4,799,925)


(8,660,943)


7,435,706

Interest income


(136,198)


(66,174)


(327,016)


(107,425)

Interest expense and finance costs


5,425,243


3,901,112


16,029,527


12,294,821

Income tax


16,500


19,250


47,839


77,250

Depreciation


8,638,739


7,340,499


25,625,382


21,578,136

Amortization of deferred drydock expenditure


771,037


771,282


1,971,213


2,050,091

EBITDA


10,075,716


7,166,044


34,686,002


43,328,579










Gain on disposal of vessels


-


-


-


451,962

Loss on book value of assets held for sale


-


(3,028,416)


-


(3,028,416)

ADJUSTED EBITDA


10,075,716


10,194,460


34,686,002


45,905,033


Earnings per share from continuing
operations


Three months ended


Nine months ended



Sept 30, 2017


Sept 30, 2016


Sept 30, 2017


Sept 30, 2016










Net (loss) / income


(4,639,605)


(4,799,925)


(8,660,943)


7,435,706

Gain on disposal of vessels


-


-


-


451,962

Loss on book value of assets held for sale


-


(3,028,416)


-


(3,028,416)

Adjusted net (loss) / income


(4,639,605)


(1,771,509)


(8,660,943)


10,012,160










EPS from continuing operations


(0.14)


(0.05)


(0.26)


0.35

Weighted average number of shares


33,575,610


33,518,013


33,575,610


28,988,963

 

 

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", "plan", "potential", "may", "expect", and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, including, without limitation, Ardmore management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for and the supply of tanker vessel capacity; changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs; the market for the Company's vessels; competition in the tanker industry; availability of financing and refinancing; charter counterparty performance; ability to obtain financing and comply with covenants in such financing arrangements; changes in governmental rules and regulations or actions taken by regulatory authorities; general domestic and international political conditions; potential disruption of shipping routes due to accidents, piracy or political events; vessels breakdowns and instances of off-hires; and other factors. Please see the Company's filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Investor Relations Enquiries:
Mr. Leon Berman 
The IGB Group 
45 Broadway, Suite 1150
Tel: 212-477-8438 
Fax: 212-477-8636 
Email: [email protected]  

Or

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

SOURCE Ardmore Shipping Corporation


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