DORIAN LPG LTD., 10-Q filed on 2/5/2020
Quarterly Report
v3.19.3.a.u2
Document and Entity Information - shares
9 Months Ended
Dec. 31, 2019
Feb. 01, 2020
Document and Entity Information    
Entity Registrant Name DORIAN LPG LTD.  
Entity Central Index Key 0001596993  
Document Type 10-Q  
Document Period End Date Dec. 31, 2019  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   53,837,172
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period true  
Entity Shell Company false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
v3.19.3.a.u2
Condensed Consolidated Balance Sheets - USD ($)
Dec. 31, 2019
Mar. 31, 2019
Current assets    
Cash and cash equivalents $ 64,691,247 $ 30,838,684
Restricted cash - current 1,620,000  
Trade receivables, net and accrued revenues 842,495 1,384,118
Due from related parties 69,135,975 44,455,643
Inventories 2,222,543 2,111,637
Derivative instruments 1,590,000  
Prepaid expenses and other current assets 3,721,270 3,798,987
Total current assets 143,823,530 82,589,069
Fixed assets    
Vessels, net 1,447,166,072 1,478,520,314
Other fixed assets, net 214,131 160,283
Total fixed assets 1,447,380,203 1,478,680,597
Other non-current assets    
Deferred charges, net 6,235,920 2,000,794
Derivative instruments 1,033,323 6,448,498
Due from related parties—non-current 22,000,000 19,800,000
Restricted cash - non-current 35,630,353 35,633,962
Other non-current assets 1,729,701 217,097
Total assets 1,657,833,030 1,625,370,017
Current liabilities    
Trade accounts payable 13,761,191 7,212,580
Accrued expenses 5,838,090 3,436,116
Due to related parties 11,162 489,644
Deferred income 2,076,493 4,258,683
Current portion of long-term operating leases 393,523  
Current portion of long-term debt 63,968,414 63,968,414
Total current liabilities 86,048,873 79,365,437
Long-term liabilities    
Long-term debt—net of current portion and deferred financing fees 586,305,003 632,122,372
Derivative instruments 1,466,329  
Other long-term liabilities 1,988,049 1,199,650
Total long-term liabilities 589,759,381 633,322,022
Total liabilities 675,808,254 712,687,459
Commitments and contingencies
Shareholders' equity    
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued nor outstanding
Common stock, $0.01 par value, 450,000,000 shares authorized, 59,078,230 and 58,882,515 shares issued, 53,987,172 and 55,167,708 shares outstanding (net of treasury stock), as of December 31, 2019 and March 31, 2019, respectively 590,783 588,826
Additional paid-in-capital 866,429,768 863,583,692
Treasury stock, at cost; 5,091,058 and 3,714,807 shares as of December 31, 2019 and March 31, 2019, respectively (52,406,243) (36,484,561)
Retained earnings 167,410,468 84,994,601
Total shareholders' equity 982,024,776 912,682,558
Total liabilities and shareholders' equity $ 1,657,833,030 $ 1,625,370,017
v3.19.3.a.u2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Mar. 31, 2019
Condensed Consolidated Balance Sheets    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 450,000,000 450,000,000
Common stock, shares issued 59,078,230 58,882,515
Common stock, shares outstanding (net of treasury stock) 53,987,172 55,167,708
Treasury stock, shares at cost 5,091,058 3,714,807
v3.19.3.a.u2
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Revenues.        
Revenues $ 85,437,806 $ 55,113,295 $ 238,228,227 $ 123,565,119
Expenses        
Voyage expenses 1,178,702 287,221 2,372,839 822,618
Charter hire expenses 2,071,206   6,181,206  
Vessel operating expenses 19,131,124 16,773,634 52,644,762 50,834,364
Depreciation and amortization 16,710,403 16,430,363 49,450,242 49,133,072
General and administrative expenses 5,037,783 5,156,573 17,669,024 18,768,996
Professional and legal fees related to the BW Proposal   7,766,847   10,020,436
Total expenses 44,129,218 46,414,638 128,318,073 129,579,486
Other income-related parties 450,169 614,633 1,387,536 1,843,782
Operating income/(loss) 41,758,757 9,313,290 111,297,690 (4,170,585)
Other income/(expenses)        
Interest and finance costs (8,778,905) (10,000,018) (27,779,560) (30,526,971)
Interest income 394,876 413,546 1,101,831 1,326,442
Unrealized gain/(loss) on derivatives 1,446,395 (6,669,266) (5,291,504) (3,910,190)
Realized gain on derivatives 449,276 881,276 2,191,417 2,494,832
Other gain/(loss), net 358,513 (157,480) 895,993 (205,858)
Total other income/(expenses), net (6,129,845) (15,531,942) (28,881,823) (30,821,745)
Net income/(loss) $ 35,628,912 $ (6,218,652) $ 82,415,867 $ (34,992,330)
Weighted average shares outstanding Basic (in shares) 53,944,991 54,441,203 54,380,855 54,356,060
Weighted average shares outstanding Diluted (in shares) 54,176,748 54,441,203 54,615,843 54,356,060
Earnings/(loss) per common share – basic (in dollars per share) $ 0.66 $ (0.11) $ 1.52 $ (0.64)
Earnings/(loss) per common share – diluted (in dollars per share) $ 0.66 $ (0.11) $ 1.51 $ (0.64)
Net pool revenue - related party        
Revenues.        
Revenues $ 77,470,478 $ 46,683,295 $ 208,507,192 $ 94,816,738
Time charter revenue        
Revenues.        
Revenues 7,859,035 8,370,000 29,112,464 28,477,881
Other revenues, net        
Revenues.        
Revenues $ 108,293 $ 60,000 $ 608,571 $ 270,500
v3.19.3.a.u2
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
Common stock
Treasury stock
Additional paid-in capital
Retained earnings
Total
Balance at Mar. 31, 2018 $ 586,402 $ (35,223,428) $ 858,109,882 $ 135,940,506 $ 959,413,362
Balance (in shares) at Mar. 31, 2018 58,640,161        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       (20,596,558) (20,596,558)
Restricted share award issuances $ 2,095   (2,095)    
Restricted share award issuances (in shares) 209,552        
Stock-based compensation     1,632,538   1,632,538
Purchase of treasury stock   (1,133,018)     (1,133,018)
Balance at Jun. 30, 2018 $ 588,497 (36,356,446) 859,740,325 115,343,948 939,316,324
Balance (in shares) at Jun. 30, 2018 58,849,713        
Balance at Mar. 31, 2018 $ 586,402 (35,223,428) 858,109,882 135,940,506 959,413,362
Balance (in shares) at Mar. 31, 2018 58,640,161        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period         (34,992,330)
Balance at Dec. 31, 2018 $ 588,699 (36,356,446) 862,295,309 100,948,176 927,475,738
Balance (in shares) at Dec. 31, 2018 58,869,711        
Balance at Jun. 30, 2018 $ 588,497 (36,356,446) 859,740,325 115,343,948 939,316,324
Balance (in shares) at Jun. 30, 2018 58,849,713        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       (8,177,120) (8,177,120)
Restricted share award issuances $ 98   (98)    
Restricted share award issuances (in shares) 9,582        
Stock-based compensation     1,324,861   1,324,861
Balance at Sep. 30, 2018 $ 588,595 (36,356,446) 861,065,088 107,166,828 932,464,065
Balance (in shares) at Sep. 30, 2018 58,859,295        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       (6,218,652) (6,218,652)
Restricted share award issuances $ 104   (104)    
Restricted share award issuances (in shares) 10,416        
Stock-based compensation     1,230,325   1,230,325
Balance at Dec. 31, 2018 $ 588,699 (36,356,446) 862,295,309 100,948,176 927,475,738
Balance (in shares) at Dec. 31, 2018 58,869,711        
Balance at Mar. 31, 2019 $ 588,826 (36,484,561) 863,583,692 84,994,601 912,682,558
Balance (in shares) at Mar. 31, 2019 58,882,515        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       6,075,059 6,075,059
Restricted share award issuances $ 78   (78)    
Restricted share award issuances (in shares) 7,750        
Stock-based compensation     1,305,827   1,305,827
Purchase of treasury stock   (983,582)     (983,582)
Balance at Jun. 30, 2019 $ 588,904 (37,468,143) 864,889,441 91,069,660 919,079,862
Balance (in shares) at Jun. 30, 2019 58,890,265        
Balance at Mar. 31, 2019 $ 588,826 (36,484,561) 863,583,692 84,994,601 912,682,558
Balance (in shares) at Mar. 31, 2019 58,882,515        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period         82,415,867
Balance at Dec. 31, 2019 $ 590,783 (52,406,243) 866,429,768 167,410,468 982,024,776
Balance (in shares) at Dec. 31, 2019 59,078,230        
Balance at Jun. 30, 2019 $ 588,904 (37,468,143) 864,889,441 91,069,660 919,079,862
Balance (in shares) at Jun. 30, 2019 58,890,265        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       40,711,896 40,711,896
Restricted share award issuances $ 1,832   (1,832)    
Restricted share award issuances (in shares) 183,220        
Stock-based compensation     890,700   890,700
Purchase of treasury stock   (6,310,514)     (6,310,514)
Balance at Sep. 30, 2019 $ 590,736 (43,778,657) 865,778,309 131,781,556 954,371,944
Balance (in shares) at Sep. 30, 2019 59,073,485        
Increase (Decrease) in Shareholders' Equity          
Net income/(loss) for the period       35,628,912 35,628,912
Restricted share award issuances $ 47   (47)    
Restricted share award issuances (in shares) 4,745        
Stock-based compensation     651,506   651,506
Purchase of treasury stock   (8,627,586)     (8,627,586)
Balance at Dec. 31, 2019 $ 590,783 $ (52,406,243) $ 866,429,768 $ 167,410,468 $ 982,024,776
Balance (in shares) at Dec. 31, 2019 59,078,230        
v3.19.3.a.u2
Condensed Consolidated Statements of Cash Flows - USD ($)
9 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net income/(loss) $ 82,415,867 $ (34,992,330)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:    
Depreciation and amortization 49,450,242 49,133,072
Amortization of financing costs 2,199,487 2,383,918
Unrealized (gain)/loss on derivatives 5,291,504 3,910,190
Stock-based compensation expense 2,848,033 4,187,724
Unrealized foreign currency (gain)/loss, net 68,225 285,938
Other non-cash items, net (1,010,948) 121,397
Changes in operating assets and liabilities    
Trade receivables, net and accrued revenue 541,623 327,959
Prepaid expenses and other current assets (479,382) (704,832)
Due from related parties (26,880,332) (31,046,174)
Inventories (110,906) (133,650)
Other non-current assets (405,342) (2,560)
Trade accounts payable 1,325,869 (1,015,506)
Accrued expenses and other liabilities (1,265,635) 4,061,128
Due to related parties (478,482) (334,353)
Payments for drydocking costs (3,133,783) (579,711)
Net cash provided by (used in) operating activities 110,376,040 (4,397,790)
Cash flows from investing activities:    
Vessel-related capital expenditures (12,370,273) (2,703,247)
Purchases of investment securities   (499,690)
Proceeds from sale of investment securities 1,503,302  
Payments to acquire other fixed assets (140,323) (1,062)
Net cash used in investing activities (11,007,294) (3,203,999)
Cash flows from financing activities:    
Proceeds from long-term debt borrowings   65,137,500
Repayment of long-term debt borrowings (47,976,310) (114,212,965)
Purchase of treasury stock (15,813,246) (1,238,642)
Financing costs paid (40,547) (628,144)
Net cash used in financing activities (63,830,103) (50,942,251)
Effects of exchange rates on cash and cash equivalents (69,689) (241,508)
Net increase (decrease) in cash, cash equivalents and restricted cash 35,468,954 (58,785,548)
Cash, cash equivalents, and restricted cash at the beginning of the period 66,472,646 129,368,380
Cash, cash equivalents, and restricted cash at the end of the period $ 101,941,600 $ 70,582,832
v3.19.3.a.u2
Basis of Presentation and General Information
9 Months Ended
Dec. 31, 2019
Basis of Presentation and General Information  
Basis of Presentation and General Information

Dorian LPG Ltd.

Notes to Unaudited Condensed Consolidated Financial Statements

(Expressed in United States Dollars)

1.  Basis of Presentation and General Information

 

Dorian LPG Ltd. (“Dorian”) was incorporated on July 1, 2013 under the laws of the Republic of the Marshall Islands, is headquartered in the United States and is engaged in the transportation of liquefied petroleum gas (“LPG”) worldwide. Specifically, Dorian and its subsidiaries (together “we”, “us”, “our”, or the “Company”) are focused on owning and operating very large gas carriers (“VLGCs”), each with a cargo carrying capacity of greater than 80,000 cbm, in the LPG shipping industry. As of December 31, 2019, our fleet consists of twenty-three VLGCs, including nineteen fuel-efficient 84,000 cbm ECO-design VLGCs (“ECO-VLGCs”), three 82,000 cbm VLGCs and one time chartered-in ECO-VLGC. As of December 31, 2019, six of our ECO-VLGCs are equipped with exhaust gas cleaning systems (commonly referred to as “scrubbers”) to reduce sulfur emissions. The installation of scrubbers on four of these VLGCs was completed during the nine months ended December 31, 2019. The installation of scrubbers on an additional two of our VLGCs was in progress as of December 31, 2019, one of which was completed in January 2020 with the other expected to be completed in February 2020. An additional four of our VLGCs are under contract to be equipped with scrubbers as of December 31, 2019, for which we expect installation to be completed during the first half of calendar year 2020.  

 

On April 1, 2015, Dorian and Phoenix Tankers Pte. Ltd. (“Phoenix”) began operations of Helios LPG Pool LLC (the “Helios Pool”), which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. Refer to Note 3 below for further description of the Helios Pool.

 

The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and related Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of normal recurring items, necessary for a fair presentation of financial position, operating results and cash flows have been included in the accompanying unaudited interim condensed consolidated financial statements and related notes. The accompanying unaudited interim condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended March 31, 2019 included in our Annual Report on Form 10-K filed with the SEC on May 30, 2019.

 

Our interim results are subject to seasonal and other fluctuations, and the operating results for any quarter are therefore not necessarily indicative of results that may be otherwise expected for the entire year.

 

Our subsidiaries as of December 31, 2019, which are all wholly-owned and are incorporated in the Republic of the Marshall Islands (unless otherwise noted), are listed below.

 

Vessel Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

    

Type of

    

 

    

 

    

 

 

Subsidiary

 

vessel

 

Vessel’s name

 

Built

 

CBM(1)

 

CMNL LPG Transport LLC

 

VLGC

 

Captain Markos NL(2)

 

2006

 

82,000

 

CJNP LPG Transport LLC

 

VLGC

 

Captain John NP(2)

 

2007

 

82,000

 

CNML LPG Transport LLC

 

VLGC

 

Captain Nicholas ML(2)

 

2008

 

82,000

 

Comet LPG Transport LLC

 

VLGC

 

Comet

 

2014

 

84,000

 

Corsair LPG Transport LLC

 

VLGC

 

Corsair(2)

 

2014

 

84,000

 

Corvette LPG Transport LLC

 

VLGC

 

Corvette(2)

 

2015

 

84,000

 

Dorian Shanghai LPG Transport LLC

 

VLGC

 

Cougar

 

2015

 

84,000

 

Concorde LPG Transport LLC

 

VLGC

 

Concorde(2)

 

2015

 

84,000

 

Dorian Houston LPG Transport LLC

 

VLGC

 

Cobra

 

2015

 

84,000

 

Dorian Sao Paulo LPG Transport LLC

 

VLGC

 

Continental

 

2015

 

84,000

 

Dorian Ulsan LPG Transport LLC

 

VLGC

 

Constitution

 

2015

 

84,000

 

Dorian Amsterdam LPG Transport LLC

 

VLGC

 

Commodore

 

2015

 

84,000

 

Dorian Dubai LPG Transport LLC

 

VLGC

 

Cresques

 

2015

 

84,000

 

Constellation LPG Transport LLC

 

VLGC

 

Constellation

 

2015

 

84,000

 

Dorian Monaco LPG Transport LLC

 

VLGC

 

Cheyenne

 

2015

 

84,000

 

Dorian Barcelona LPG Transport LLC

 

VLGC

 

Clermont

 

2015

 

84,000

 

Dorian Geneva LPG Transport LLC

 

VLGC

 

Cratis

 

2015

 

84,000

 

Dorian Cape Town LPG Transport LLC

 

VLGC

 

Chaparral

 

2015

 

84,000

 

Dorian Tokyo LPG Transport LLC

 

VLGC

 

Copernicus

 

2015

 

84,000

 

Commander LPG Transport LLC

 

VLGC

 

Commander

 

2015

 

84,000

 

Dorian Explorer LPG Transport LLC

 

VLGC

 

Challenger

 

2015

 

84,000

 

Dorian Exporter LPG Transport LLC

 

VLGC

 

Caravelle

 

2016

 

84,000

 

 

 Management Subsidiaries

 

 

 

 

Subsidiary

 

Dorian LPG Management Corp.

 

Dorian LPG (USA) LLC (incorporated in USA)

 

Dorian LPG (UK) Ltd. (incorporated in UK)

 

Dorian LPG Finance LLC

 

Occident River Trading Limited (incorporated in UK)

 

Dorian LPG (DK) ApS (incorporated in Denmark)

 

Dorian LPG Chartering LLC

 

Dorian LPG FFAS LLC

 


(1)

CBM: Cubic meters, a standard measure for LPG tanker capacity

(2)

Operated pursuant to a bareboat charter agreement. Refer to Note 6 below for further information.

v3.19.3.a.u2
Significant Accounting Policies
9 Months Ended
Dec. 31, 2019
Significant Accounting Policies  
Significant Accounting Policies

2.  Significant Accounting Policies

 

Except for the adoption of new guidance to update the requirements of financial accounting and reporting for lessees and lessors, which became effective April 1, 2019, the same accounting policies have been followed in these unaudited interim condensed consolidated financial statements as were applied in the preparation of our audited financial statements for the year ended March 31, 2019 (refer to Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019), except as discussed herein.

 

Accounting Pronouncements Adopted During the Nine Months Ended December 31, 2019

 

In February 2016, the FASB issued accounting guidance to update the requirements of financial accounting and reporting for lessees and lessors. The updated guidance, for lease terms of more than 12 months, requires a dual approach for lessee accounting under which a lessee accounts for leases as finance leases or operating leases. Both finance leases and operating leases under the updated guidance result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee recognizes interest expense and amortization of the right-of-use asset, and for operating leases, the lessee recognizes a straight-line total lease expense. Lessor accounting remains largely unchanged from previous guidance under U.S. GAAP. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. In July 2018, the FASB issued amended guidance to provide entities with relief from the cost of implementing certain aspects of the new leasing guidance. Entities may elect not to recast comparative periods presented when transitioning to the new leasing guidance and, furthermore, lessors may elect not to separate lease and nonlease components when certain conditions are met. We adopted the amended guidance effective April 1, 2019 and applied the modified retrospective approach. Comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods. The adoption did not have a material effect on our unaudited condensed consolidated statements of operations or cash flows. We recognized operating lease right-of-use assets and operating lease liabilities related to our office leases described below on our unaudited condensed consolidated balance sheet of approximately $1.2 million as of April 1, 2019. Refer to Note 12 for a description of our operating lease expenses for the three and nine months ended December 31, 2019 and 2018 and commitments related to our leases as of December 31, 2019. We renewed an operating lease for our London office greater than 12 months during the nine months ended December 31, 2019. In relation to our time chartered-in VLGC described below, the adoption of the new guidance had no impact on our financial statements since the length of the time charter is not more than 12 months. 

 

Time charter-out contracts

 

Our time charter revenues are generated from our vessels being hired by a third-party charterer for a specified period in exchange for consideration which is based  on a monthly hire rate. The charterer has the full discretion over the ports subject to compliance with the applicable charter party agreement and relevant laws. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance, and lubricants. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied on a straight-line basis over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire monthly in advance. We determined that our time charter contracts are considered operating leases and therefore fall under the scope of the amended guidance because (i) the vessel is an identifiable asset, (ii) we do not have substantive substitution rights, and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use. Under the amended guidance, we elected the practical expedients available to lessors to not separate the lease and non-lease components included in the time charter revenue because (i) the pattern of revenue recognition for the lease and non-lease components is the same as it is earned by the passage of time and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The adoption of the amended guidance did not impact our accounting for time charter out contracts. 

 

Time charter-in contracts

 

We elected the practical expedient of the amended guidance that allows for contracts with an initial lease term of 12 months or less to be excluded from the operating lease right-of-use assets and lease liabilities recognized on our unaudited condensed consolidated balance sheets. The duration of our only time charter-in contract at the time of adoption of the amended guidance was 12 months.  

 

Office leases

 

We currently have operating leases for our offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece, which we determined to be operating leases and record the lease expense as part of general and administrative expenses in our unaudited condensed consolidated statements of operations. We carried forward our historical assessments of (1) whether contracts are or contain leases, (2) lease classifications, and (3) initial direct costs. For leases with terms greater than 12 months, we record the related right-of-use asset and lease liability as the present value of fixed lease payments over the lease term. For leases that do not provide a readily determinable discount rate, we use our incremental borrowing rate to discount lease payments to present value. The discount rate used ranged from 4.56% to 5.53%. The weighted average discount rate used to calculate the lease liability was 5.32%. The weighted average remaining lease term on our office leases as of December 31, 2019 is 33.1 months.

 

Our operating lease right-of-use asset and lease liabilities as of December 31, 2019 are as follows:

 

 

 

 

 

 

 

Description

 

Location on Balance Sheet

 

December 31, 2019

Assets:

 

 

 

 

 

Non-current

 

 

 

 

 

Office Leases

 

Other non-current assets

 

$

1,107,262

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current

 

 

 

 

 

Office Leases

 

Current portion of long-term operating leases

 

$

393,523

 

 

 

 

 

 

Long-term

 

 

 

 

 

Office Leases

 

Other long-term liabilities

 

$

717,150

 

 

Maturities of operating lease liabilities as of December 31, 2019 are as follows:

 

 

 

 

 

Remainder FY 2020

 

$

109,820

FY 2021

 

 

441,252

FY 2022

 

 

451,124

FY 2023

 

 

182,101

Total lease payments

 

 

1,184,297

Less: imputed interest

 

 

(73,624)

Carrying value of lease liabilities

 

$

1,110,673

 

v3.19.3.a.u2
Transactions with Related Parties
9 Months Ended
Dec. 31, 2019
Transactions with Related Parties  
Transactions with Related Parties

3.  Transactions with Related Parties

 

Dorian (Hellas), S.A.

 

Dorian (Hellas) S.A. (“DHSA”) formerly provided technical, crew, commercial management, insurance and accounting services to our vessels and had agreements to outsource certain of these services to Eagle Ocean Transport Inc. (“Eagle Ocean Transport”), which is 100% owned by Mr. John C. Hadjipateras, our Chairman, President and Chief Executive Officer.

 

Dorian LPG (USA) LLC and its subsidiaries entered into an agreement with DHSA, retroactive to July 2014 and superseding an agreement between Dorian LPG (UK) Ltd. and DHSA, for the provision by Dorian LPG (USA) LLC and its subsidiaries of certain chartering and marine operation services to DHSA, for which income was earned and included in “Other income-related parties” totaling less than $0.1 million for both the three months ended December 31, 2019 and 2018,  $0.1 million for the nine months ended December 31, 2019 and  $0.2 for the nine months ended December 31, 2018.

 

As of December 31, 2019,  $1.3 million was due from DHSA and included in “Due from related parties” in the unaudited interim condensed consolidated balance sheets included herein. As of March 31, 2019,  $1.2 million was due from DHSA and included in “Due from related parties” in the audited consolidated balance sheets.

 

Eagle Ocean Transport incurs miscellaneous costs on behalf of us, for which we reimbursed Eagle Ocean Transport less than $0.1 million for both the three months ended December 31, 2019 and 2018, and less than $0.1 million for both the nine months ended December 31, 2019  and 2018, respectively. Such expenses are reimbursed based on their actual cost.  

 

Helios LPG Pool LLC

 

On April 1, 2015, Dorian and Phoenix began operations of the Helios Pool, which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. We hold a 50% interest in the Helios Pool as a joint venture with Phoenix and all significant rights and obligations are equally shared by both parties. All profits of the Helios Pool are distributed to the pool participants based on pool points assigned to each vessel as variable charter hire and, as a result, there are no profits available to the equity investors as a share of equity. We have determined that the Helios Pool is a variable interest entity as it does not have sufficient equity at risk. We do not consolidate the Helios Pool because we are not the primary beneficiary and do not have a controlling financial interest. In consideration of Accounting Standards Codification (“ASC”) 810-10-50-4e, the significant factors considered and judgments made in determining that the power to direct the activities of the Helios Pool that most significantly impact the entity’s economic performance are shared, in that all significant performance activities which relate to approval of pool policies and strategies related to pool customers and the marketing of the pool for the procurement of customers for the pool vessels, addition of new pool vessels and the pool cost management, require unanimous board consent from a board consisting of two members from each joint venture investor. Further, in accordance with the guidance in ASC 810-10-25-38D, the Company and Phoenix are not related parties as defined in ASC 850 nor are they de facto agents pursuant to ASC 810-10, the power over the significant activities of the Helios Pool is shared, and no party is the primary beneficiary in the Helios Pool, or has a controlling financial interest. As of December 31, 2019, the Helios Pool operated thirty VLGCs, including twenty vessels from our fleet (including one vessel time chartered-in from an unrelated party), four Phoenix vessels, and six other vessels.

 

As of December 31, 2019, we had receivables from the Helios Pool of $89.8 million, including $22.0 million of working capital contributed for the operation of our vessels in the pool. As of March 31, 2019, we had receivables from the Helios Pool of $62.5 million (net of an amount due to Helios Pool of $0.5 million which is reflected under “Due to related Parties”), including $19.8 million of working capital contributed for the operation of our vessels in the pool. Our maximum exposure to losses from the pool as of December 31, 2019 is limited to the receivables from the pool. The Helios Pool does not have any third-party debt obligations. The Helios Pool has entered into commercial management agreements with each of Dorian LPG (UK) Ltd. and Phoenix as commercial managers and has appointed both commercial managers as the exclusive commercial managers of pool vessels. Fees for commercial management services provided by Dorian LPG (UK) Ltd. are included in “Other income-related parties” in the unaudited interim condensed consolidated statement of operations included herein and were $0.4 million and $0.6 million for the three months ended December 31, 2019 and 2018, respectively, and $1.2 million and $1.7 million for the nine months ended December 31, 2019 and 2018, respectively. Additionally, we receive a fixed reimbursement of expenses such as costs for security guards and war risk insurance for vessels operating in high risk areas from the Helios Pool, for which we earned $0.4 million and $0.1 million for the three months ended December 31, 2019, and 2018, respectively, and $0.9 million and $0.3 million for the nine months ended December 31, 2019 and 2018, respectively, and are included in “Other revenues, net” in the unaudited interim condensed consolidated statements of operations included herein.

 

Through our vessel owning subsidiaries, we have chartered vessels to the Helios Pool during the nine months ended December 31, 2019 and 2018. The time charter revenue from the Helios Pool is variable depending upon the net results of the pool, operating days and pool points for each vessel. The Helios Pool enters into voyage and time charters with external parties and receives freight and related revenue and, where applicable, incurs voyage costs such as bunkers, port costs and commissions. At the end of each month, the Helios Pool calculates net pool revenues using gross revenues, less voyage expenses of all pool vessels, less fixed time charter hire for any chartered-in vessels, less the general and administrative expenses of the pool. Net pool revenues, less any amounts required for working capital of the Helios Pool, are distributed, to the extent they have been collected from third-party customers of the Helios Pool, as variable rate time charter hire for the relevant vessel to participants based on pool points (vessel attributes such as cargo carrying capacity, fuel consumption, and speed are taken into consideration) and number of days the vessel participated in the pool in the period. We recognize net pool revenues on a monthly basis, when each relevant vessel has participated in the pool during the period and the amount of net pool revenues for the month can be estimated reliably. Revenue earned from the Helios Pool is presented in Note 9. 

v3.19.3.a.u2
Deferred Charges, Net
9 Months Ended
Dec. 31, 2019
Deferred Charges, Net.  
Deferred Charges, Net

4.  Deferred Charges, Net

 

The analysis and movement of deferred charges is presented in the table below:

 

 

 

 

 

 

 

    

Drydocking

 

 

 

costs

 

Balance, April 1, 2019

 

$

2,000,794

 

Additions

 

 

4,784,637

 

Amortization

 

 

(549,511)

 

Balance, December 31, 2019

 

$

6,235,920

 

 

v3.19.3.a.u2
Vessels, Net
9 Months Ended
Dec. 31, 2019
Vessels, Net  
Vessels, Net

5.  Vessels, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Accumulated

    

 

 

 

 

 

Cost

 

depreciation

 

Net book Value

 

Balance, April 1, 2019

 

$

1,732,993,810

 

$

(254,473,496)

 

$

1,478,520,314

 

Other additions

 

 

17,460,014

 

 

 —

 

 

17,460,014

 

Depreciation

 

 

 —

 

 

(48,814,256)

 

 

(48,814,256)

 

Balance, December 31, 2019

 

$

1,750,453,824

 

$

(303,287,752)

 

$

1,447,166,072

 

 

Additions to vessels, net mainly consisted of installments on the purchase of scrubbers for ten of our VLGCs during the nine months ended December 31, 2019. Our vessels, with a total carrying value of $1,447.2 million and $1,478.5 million as of December 31, 2019 and March 31, 2019, respectively, are first‑priority mortgaged as collateral for our long-term debt (refer to Note 6 below). No impairment loss was recorded for the periods presented.

v3.19.3.a.u2
Long-term Debt
9 Months Ended
Dec. 31, 2019
Long-term Debt  
Long-term Debt

6.  Long-term Debt

 

2015 Debt Facility 

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on our $758 million debt financing facility that we entered into in March 2015 with a group of banks and financial institutions (the “2015 Debt Facility”).

 

Amendment to the 2015 Debt Facility

 

On July 23, 2019, we entered into an agreement to amend the 2015 Debt Facility (the “Debt Facility Amendment”), whose key provisions include:

 

1)

a modification to the definition of consolidated EBITDA to exclude expenses incurred in connection with the BW LPG acquisition attempt (see Exhibit 10.1); 

 

2)

the following financial covenant modification:

 

·

Minimum interest coverage ratio of consolidated EBITDA, as defined in the 2015 Debt Facility, to consolidated net interest expense must be maintained greater than or equal to (i) 2.00 at all times from June 30, 2019 through March 31, 2020 and (ii) 2.50 from April 1, 2020 and at all times thereafter; and

 

3)

the following modification to the definition of consolidated liquidity:

 

·

if the minimum interest coverage ratio of consolidated EBITDA to consolidated net interest expense is less than 2.50 at any time or times during the period beginning on and including June 30, 2019 and ending on and including March 31, 2020, consolidated liquidity shall at such time or times be maintained in an amount at least equal to $47,500,000.

 

Corsair Japanese Financing

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing of our 2014-built VLGC, the Corsair, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corsair Japanese Financing”).

Concorde Japanese Financing

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing of our 2015-built VLGC, the Concorde, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Concorde Japanese Financing”).

Corvette Japanese Financing

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing of our 2015-built VLGC, the Corvette, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corvette Japanese Financing”).

CJNP Japanese Financing

 Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing our 2007-built VLGC, the Captain John NP, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CJNP Japanese Financing”).

 

CMNL Japanese Financing

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing our 2006-built VLGC, the Captain Markos NL, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CMNL Japanese Financing”).

 

CNML Japanese Financing

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on the refinancing our 2008-built VLGC, the Captain Nicholas ML, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CNML Japanese Financing”).

 

Debt Obligations

 

The table below presents our debt obligations:

 

 

 

 

 

 

 

 

 

 

    

December 31, 2019

    

March 31, 2019

 

2015 Debt Facility

 

 

 

 

 

 

 

Commercial Financing

 

$

166,461,402

 

$

175,687,613

 

KEXIM Direct Financing

 

 

114,502,131

 

 

125,860,144

 

KEXIM Guaranteed

 

 

119,130,446

 

 

130,366,568

 

K-sure Insured

 

 

59,000,735

 

 

64,706,170

 

Total 2015 Debt Facility

 

$

459,094,714

 

$

496,620,495

 

 

 

 

 

 

 

 

 

Japanese Financings

 

 

 

 

 

 

 

Corsair Japanese Financing

 

$

44,958,333

 

$

47,395,833

 

Concorde Japanese Financing

 

 

49,538,462

 

 

51,961,538

 

Corvette Japanese Financing

 

 

50,076,923

 

 

52,500,000

 

CJNP Japanese Financing

 

 

19,420,625

 

 

20,506,250

 

CMNL Japanese Financing

 

 

18,418,899

 

 

19,446,131

 

CNML Japanese Financing

 

 

20,612,351

 

 

21,666,369

 

Total Japanese Financings

 

$

203,025,593

 

$

213,476,121

 

 

 

 

 

 

 

 

 

Total debt obligations

 

$

662,120,307

 

$

710,096,616

 

Less: deferred financing fees

 

 

11,846,890

 

 

14,005,830

 

Debt obligations—net of deferred financing fees

 

$

650,273,417

 

$

696,090,786

 

 

 

 

 

 

 

 

 

Presented as follows:

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

63,968,414

 

$

63,968,414

 

Long-term debt—net of current portion and deferred financing fees

 

 

586,305,003

 

 

632,122,372

 

Total

 

$

650,273,417

 

$

696,090,786

 

 

Deferred Financing Fees

The analysis and movement of deferred financing fees is presented in the table below:

 

 

 

 

 

 

 

    

Financing

 

 

 

costs

 

Balance, April 1, 2019

 

$

14,005,830

 

Additions

 

 

40,547

 

Amortization

 

 

(2,199,487)

 

Balance, December 31, 2019

 

$

11,846,890

 

 

v3.19.3.a.u2
Stock Repurchase Program
9 Months Ended
Dec. 31, 2019
Stock Repurchase Program  
Stock Repurchase Program

7.  Stock Repurchase Program

 

On August 5, 2019, our Board of Directors authorized the repurchase of up to $50 million of shares of our common stock through the period ended December 31, 2020 (the “Common Share Repurchase Program”). As of December 31, 2019, we repurchased a total of 1.2 million shares of our common stock for approximately $14.8 million under this program, resulting in $35.2 million of available authorization remaining. Purchases may be made at our discretion in the form of open market repurchase programs, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual timing and amount of our repurchases will depend on Company and market conditions. We are not obligated to make any common share repurchases under this program.

 

v3.19.3.a.u2
Stock-Based Compensation Plans
9 Months Ended
Dec. 31, 2019
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

8.  Stock-Based Compensation Plans

 

Our stock-based compensation expense is included within general and administrative expenses in the unaudited interim condensed consolidated statements of operations and was $0.7 million and $1.2 million for the three months ended December 31, 2019 and 2018, respectively, and $2.8 million and $4.2 million for the nine months ended December 31, 2019 and 2018, respectively. Unrecognized compensation cost was $2.0 million as of December 31, 2019 and will be recognized over a remaining weighted average life of 1.91 years. For more information on our equity incentive plan, refer to Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019.

 

In June, September, and December 2019, we granted 7,750, 6,470, and 4,745 shares of stock, respectively, to our non-executive directors, which were valued and expensed at their grant date fair market value.

 

In July 2019, we granted 1,550 shares of stock to a non-employee consultant, which were valued and expensed at their grant date fair market value.

 

In August 2019, we granted an aggregate of 175,200 shares of restricted stock and 22,500 restricted stock units to certain of our officers and employees. One-fourth of the shares of restricted stock vested on the grant date and one-fourth will vest equally on the first,  second and third anniversaries of the grant date. One-third of restricted stock units will vest equally on the first,  second, and third anniversaries of the grant date. The shares of restricted stock and restricted stock units were valued at their grant date fair market value and are expensed on a straight-line basis over the respective vesting periods.

 

A summary of the activity of restricted shares and units awarded under our equity incentive plan as of December 31, 2019 and changes during the nine months ended December 31, 2019, is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Weighted-Average

 

 

 

 

 

Grant-Date

 

Incentive Share/Unit Awards

 

Number of Shares/Units

 

Fair Value

 

Unvested as of April 1, 2019

 

641,013

 

$

13.54

 

Granted

 

218,215

 

 

8.47

 

Vested

 

(457,524)

 

 

15.23

 

Unvested as of December 31, 2019

 

401,704

 

$

8.87

 

 

v3.19.3.a.u2
Revenues
9 Months Ended
Dec. 31, 2019
Revenues.  
Revenues

9.  Revenues

 

Revenues comprise the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three months ended 

    

Nine months ended

 

 

 

December 31, 2019

    

December 31, 2018

 

December 31, 2019

    

December 31, 2018

 

Net pool revenues—related party

 

$

77,470,478

 

$

46,683,295

 

$

208,507,192

 

$

94,816,738

 

Time charter revenues

 

 

7,859,035

 

 

8,370,000

 

 

29,112,464

 

 

28,477,881

 

Other revenues, net

 

 

108,293

 

 

60,000

 

 

608,571

 

 

270,500

 

Total revenues

 

$

85,437,806

 

$

55,113,295

 

$

238,228,227

 

$

123,565,119

 

 

Net pool revenues—related party depend upon the net results of the Helios Pool, and the operating days and pool points for each vessel. Refer to Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019.

 

Other revenues, net represent income from charterers relating to reimbursement of voyage expenses such as costs for security guards and war risk insurance.

v3.19.3.a.u2
Financial Instruments and Fair Value Disclosures
9 Months Ended
Dec. 31, 2019
Financial Instruments and Fair Value Disclosures  
Financial Instruments and Fair Value Disclosures

10.  Financial Instruments and Fair Value Disclosures

 

Our principal financial assets consist of cash and cash equivalents, restricted cash amounts due from related parties, trade accounts receivable and derivative instruments. Our principal financial liabilities consist of long-term debt, accounts payable, amounts due to related parties and accrued liabilities.

 

(a)

Concentration of credit risk:  Financial instruments, which may subject us to significant concentrations of credit risk, consist principally of amounts due from our charterers, including the receivables from Helios Pool, cash and cash equivalents, and restricted cash. We limit our credit risk with amounts due from our charterers, including those through the Helios Pool, by performing ongoing credit evaluations of our charterers’ financial condition and generally do not require collateral from our charterers. We limit our credit risk with our cash and cash equivalents and restricted cash by placing it with highly-rated financial institutions.

 

(b)

Interest rate risk:  Our long‑term bank loans are based on the London Interbank Offered Rate (“LIBOR”) and hence we are exposed to movements thereto. We entered into interest rate swap agreements in order to hedge a majority of our variable interest rate exposure related to our 2015 Debt Facility. Refer to Note 18 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2019 for information on our interest rate swap agreements related to the 2015 Debt Facility.  

 

(c)

Fair value measurements: Interest rate swaps are stated at fair value, which is determined using a discounted cash flow approach based on marketbased LIBOR swap yield rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and, therefore, are considered Level 2 items in accordance with the fair value hierarchy. The fair value of the interest rate swap agreements approximates the amount that we would have to pay or receive for the early termination of the agreements.

 

Additionally, we  have taken positions in freight forward agreements (“FFAs”) as economic hedges to reduce the risk related to vessels trading in the spot market and to take advantage of fluctuations in market prices. Customary requirements for trading FFAs include the maintenance of initial and variation margins based on expected volatility, open position and mark-to-market of the contracts. FFAs are recorded as assets/liabilities until they are settled. Changes in fair value prior to settlement are recorded in unrealized gain/(loss) on derivatives. Upon settlement, if the contracted charter rate is less than the average of the rates for the specified route and time period, as reported by an identified index, the seller of the FFA is required to pay the buyer the settlement sum, being an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days in the specified period covered by the FFA. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Settlement of FFAs are recorded in realized gain/(loss) on derivatives. FFAs are considered Level 2 items in accordance with the fair value hierarchy.

 

The following table summarizes the location on the balance sheet of the financial assets and liabilities that are carried at fair value on a recurring basis, which comprise our financial derivatives, all of which are considered Level 2 items in accordance with the fair value hierarchy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

March 31, 2019

 

 

 

Current assets

 

Current liabilities

 

Current assets

 

Current liabilities

 

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

 

Forward freight agreements

 

 

1,590,000

 

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

March 31, 2019

 

 

 

Other non-current assets

 

Long-term liabilities

 

Other non-current assets

 

Long-term liabilities

 

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

 

Interest rate swap agreements

 

$

1,033,323

 

$

1,466,329

 

$

6,448,498

 

$

 —

 

 

The effect of derivative instruments within the unaudited interim condensed consolidated statements of operations included herein for the periods presented is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

December 31, 2019

    

December 31, 2018

 

Forward freight agreements—change in fair value

 

Unrealized gain/(loss) on derivatives

 

$

645,000

 

$

 —

 

Interest rate swap—change in fair value

 

Unrealized gain/(loss) on derivatives

 

 

801,395

 

 

(6,669,266)

 

Interest rate swap—realized gain/(loss)

 

Realized gain on derivatives

 

 

449,276

 

 

881,276

 

Gain/(loss) on derivatives, net

 

 

 

$

1,895,671

 

$

(5,787,990)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Nine months ended

 

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

December 31, 2019

    

December 31, 2018

 

Forward freight agreements—change in fair value

 

Unrealized gain/(loss) on derivatives

 

$

1,590,000

 

$

 —

 

Interest rate swap—change in fair value

 

Unrealized gain/(loss) on derivatives

 

 

(6,881,504)

 

 

(3,910,190)

 

Interest rate swap—realized gain/(loss)

 

Realized gain on derivatives

 

 

2,191,417

 

 

2,494,832

 

Gain/(loss) on derivatives, net

 

 

 

$

(3,100,087)

 

$

(1,415,358)

 

 

As of December 31, 2019 and March 31, 2019,  no fair value measurements for assets or liabilities under Level 1 or Level 3 were recognized in the accompanying consolidated balance sheets with the exception of cash and cash equivalents, restricted cash, and securities. We did not have any other assets or liabilities measured at fair value on a non-recurring basis during the three and nine months ended December 31, 2019 and 2018.

 

(d)

Book values and fair values of financial instruments:   In addition to the derivatives that we are required to record at fair value on our balance sheet (see (c) above) and securities that are included in other current assets in our balance sheet that we record at fair value, we have other financial instruments that are carried at historical cost. These financial instruments include trade accounts receivable, amounts due from related parties, cash and cash equivalents, restricted cash, accounts payable, amounts due to related parties and accrued liabilities for which the historical carrying value approximates the fair value due to the short-term nature of these financial instruments. Cash and cash equivalents, restricted cash and securities are considered Level 1 items. We have long-term bank debt for which we believe the carrying value approximates their fair value as the loans bear interest at variable interest rates, being LIBOR, which is observable at commonly quoted intervals for the full terms of the loans, and hence are considered as Level 2 items in accordance with the fair value hierarchy. We also have long-term debt related to the Corsair Japanese Financing, Concorde Japanese Financing, Corvette Japanese Financing, CJNP Japanese Financing, CMNL Japanese Financing, and CNML Japanese Financing (collectively the “Japanese Financings”) that incur interest at a fixed-rate with the initial principal amount amortized to the purchase obligation price of each vessel. The Japanese Financings are considered Level 2 items in accordance with the fair value hierarchy and the fair value of each is based on a discounted cash flow analysis using current observable interest rates. The following table summarizes the carrying value and estimated fair value of the Japanese Financings as of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

March 31, 2019

 

 

    

Carrying Value

    

Fair Value

 

    

Carrying Value

    

Fair Value

 

Corsair Japanese Financing

 

$

44,958,333

 

$

47,063,504

 

 

$

47,395,833

 

$

45,901,900

 

Concorde Japanese Financing

 

 

49,538,462

 

 

52,040,924

 

 

 

51,961,538

 

 

50,176,288

 

Corvette Japanese Financing

 

 

50,076,923

 

 

52,630,327

 

 

 

52,500,000

 

 

50,671,689

 

CJNP Japanese Financing

 

 

19,420,625

 

 

20,712,784

 

 

 

20,506,250

 

 

20,918,881

 

CMNL Japanese Financing

 

 

18,418,899

 

 

19,843,518

 

 

 

19,446,131

 

 

19,862,056

 

CNML Japanese Financing

 

 

20,612,351

 

 

22,236,801

 

 

 

21,666,369

 

 

22,137,090

 

 

v3.19.3.a.u2
Earnings/(Loss) Per Share (EPS)
9 Months Ended
Dec. 31, 2019
Earnings/(Loss) Per Share ("EPS")  
Earnings/(Loss) Per Share ("EPS")

11.  Earnings/(Loss) Per Share (“EPS”)

 

Basic EPS represents net income/(loss) attributable to common shareholders divided by the weighted average number of our common shares outstanding during the measurement period. Our restricted stock shares include rights to receive dividends that are subject to the risk of forfeiture if service requirements are not satisfied, and as a result, these shares are not considered participating securities and are excluded from the basic weighted-average shares outstanding calculation. Diluted EPS represent net income/(loss) attributable to common shareholders divided by the weighted average number of our common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period.

 

The calculations of basic and diluted EPS for the periods presented are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

(In U.S. dollars except share data)

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

$

35,628,912

 

$

(6,218,652)

 

$

82,415,867

 

$

(34,992,330)

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

53,944,991

 

 

54,441,203

 

 

54,380,855

 

 

54,356,060

 

Effect of dilutive restricted stock and restricted stock units

 

231,757

 

 

 —

 

 

234,988

 

 

 —

 

Diluted weighted average number of common shares outstanding

 

54,176,748

 

 

54,441,203

 

 

54,615,843

 

 

54,356,060

 

EPS:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.66

 

$

(0.11)

 

$

1.52

 

$

(0.64)

 

Diluted

$

0.66

 

$

(0.11)

 

$

1.51

 

$

(0.64)

 

 

For the three and nine months ended December 31, 2018, there were 725,685 shares of unvested restricted stock, which were excluded from the calculation of diluted EPS because the effect of their inclusion would be anti-dilutive. There were no anti-dilutive shares of unvested restricted stock excluded from the calculation of diluted EPS for the three and nine months ended December 31, 2019.

v3.19.3.a.u2
Commitments and Contingencies
9 Months Ended
Dec. 31, 2019
Commitments and Contingencies  
Commitments and Contingencies

12.  Commitments and Contingencies

 

Commitments under Contracts for Scrubbers Purchases

 

We had contractual commitments to purchase scrubbers to reduce sulfur emissions as of:

 

 

 

 

 

 

 

 

December 31, 2019

 

Less than one year

 

$

4,218,540

 

Total

 

$

4,218,540

 

 

These amounts only reflect firm commitments for scrubber purchases as of December 31, 2019 and exclude costs related to their installation. The timing of these payments is subject to change as installation times are finalized.

 

Operating Leases

 

Operating lease rent expense was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

Operating lease rent expense

 

$

141,395

 

$

120,010

 

$

391,411

 

$

353,609

 

We had the following commitments as a lessee under operating leases relating to our United States, Greece, United Kingdom, and Denmark offices:

 

 

 

 

 

 

 

 

December 31, 2019