Navios Maritime Midstream Partners L.P. (“Navios Midstream”)
(NYSE:NAP), an owner and operator of tanker vessels, reported its
financial results today for the second quarter and the six month
period ended June 30, 2016.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Midstream stated, “We are pleased to report $16.4
million of EBITDA and $5.9 million of net income for the second
quarter of 2016, representing increases of 17.5% and 9.2%,
respectively, over the prior comparable period. We recently
announced a distribution of $0.4225 per unit, representing an
annual distribution of $1.69 per unit and a current yield of
approximately 13%. Our total unit coverage was 1.14x for the
quarter.”
Angeliki Frangou continued, “While the broader
MLP market has appreciated about 11% this year, the market is well
below the 2014 highs. Our financial strength allows us to
maintain our dividend while waiting for the MLP market to recover
further - we have conservative leverage and low operating
costs. In addition, we have fixed virtually all available
days for the next 30 months through 2018.”
RECENT
DEVELOPMENTS
Cash
Distribution
The Board of Directors of Navios Midstream
declared a cash distribution for the second quarter of 2016 of
$0.4225 per unit. The cash distribution is payable on
August 12, 2016 to unitholders of record as of August 10,
2016.
Profit
Share
During the second quarter of 2016, Navios
Midstream benefited from the healthy VLCC spot market and
recognized $2.6 million under its profit sharing arrangements.
Profit share recognized for the six months ended June 30, 2016, was
$4.3 million.
Long – Term Cash
Flow
Navios Midstream has entered into long-term
charter-out agreements for its vessels, with a remaining average
term of 4.8 years, which are expected to provide a stable base of
revenue and distributable cash flow. Navios Midstream has currently
contracted out 100% of its available days for 2016 and 2017 and
99.4% days for 2018, including the backstop commitment provided by
Navios Maritime Acquisition Corporation (“Navios Acquisition”),
expecting to generate revenues of approximately $93.8 million,
$86.6 million and $86.2 million, respectively. The average expected
daily charter-out rate for the fleet is $42,707, $39,559 and
$39,587 for 2016, 2017 and 2018, respectively.
FINANCIAL HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Midstream has compiled
condensed consolidated statements of operations for the three and
six months ended June 30, 2016 and 2015. The quarterly and six
month period 2016 and 2015 information was derived from the
unaudited condensed consolidated financial statements for the
respective periods. EBITDA and Operating Surplus are non-GAAP
financial measures and should not be used in isolation or
substitution for Navios Midstream’s results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in $‘000
except per unit data) |
|
Three Month Period ended June 30, 2016 (unaudited) |
|
Three Month Period
ended June 30, 2015 (unaudited) |
|
Six Month Period ended June 30, 2016 (unaudited) |
|
Six Month Period ended June 30, 2015 (unaudited) |
Revenue |
|
$ |
22,695 |
|
|
$ |
18,350 |
|
|
$ |
46,844 |
|
|
$ |
35,053 |
|
Net income |
|
|
5,889 |
|
|
|
5,394 |
|
|
|
13,384 |
|
|
|
11,706 |
|
EBITDA |
|
|
16,434 |
|
|
|
13,987 |
|
|
|
34,122 |
|
|
|
26,600 |
|
Earnings per common unit
(basic and diluted) |
|
|
0.28 |
|
|
|
0.26 |
|
|
|
0.65 |
|
|
|
0.59 |
|
Operating Surplus |
|
|
10,000 |
|
|
|
10,299 |
|
|
|
21,271 |
|
|
|
19,723 |
|
Maintenance and
replacement capital expenditure reserve |
|
|
(3,580 |
) |
|
|
(2,354 |
) |
|
|
(7,160 |
) |
|
|
(4,502 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three month periods ended June 30, 2016 and
2015
Revenue for the three month period ended June 30, 2016
increased by $4.3 million to $22.7 million, as compared to
$18.4 million for the same period in 2015. The increase was
due to the acquisition of the Nave Celeste and the C. Dream in June
2015 and an increase of $1.2 million in profit sharing recognized
in relation to certain charters for the three month period ended
June 30, 2016, as compared to the same period of 2015. Time
Charter Equivalent (“TCE”) was $45,783 for the three month period
ended June 30, 2016 and $46,545 for the three month period
ended June 30, 2015. The decrease in TCE was due to the lower
average charter rate of the two VLCCs acquired in June 2015,
compared to the existing fleet.
EBITDA increased by approximately $2.4 million to
$16.4 million for the three month period ended June 30,
2016, as compared to $14.0 million for the same period in
2015. The increase in EBITDA was mainly due to a $4.3 million
increase in revenue. The above increase was partially mitigated by
a: (a) $1.5 million increase in management fees due to the two
VLCCs acquired in June 2015; (b) $0.2 million increase in
general and administrative expenses; and (c) $0.1 million
increase in time charter expenses.
The reserve for estimated maintenance and replacement for
capital expenditures for the three month period ended June 30,
2016 and 2015 was $3.6 million and $2.4 million, respectively
(please see Reconciliation of Non-GAAP Financial Measures in
Exhibit 3).
Navios Midstream generated an Operating Surplus for the three
month period ended June 30, 2016 of $10.0 million. Operating
Surplus is a non-GAAP financial measure used by certain investors
to assist in evaluating a partnership’s ability to make quarterly
cash distributions (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Net income for the three month period ended June 30, 2016
was $5.9 million compared to a $5.4 million for the three
month period ended June 30, 2015. The increase in net income
of $0.5 million was due to a: (a) $2.4 million increase in EBITDA;
and (b) $0.1 million increase in interest income; partially
mitigated by a: (i) $1.3 million increase in depreciation and
amortization; and (ii) $0.7 million increase in direct vessel
expenses.
Earnings per common unit for the three month period ended
June 30, 2016 was $0.28.
Six month periods ended June 30, 2016 and
2015
Revenue for the six month period ended June 30, 2016
increased by approximately $11.8 million to $46.8 million, as
compared to $35.1 million for the same period in 2015. The
increase was due to the acquisition of the Nave Celeste and the C.
Dream in June 2015 and an increase of $1.9 million in profit
sharing recognized in relation to certain charters for the six
month period ended June 30, 2016, as compared to the same
period of 2015. Time Charter Equivalent (“TCE”) was $44,565
for the six month period ended June 30, 2016 and $46,234 for
the six month period ended June 30, 2015. The decrease in TCE
was due to the lower average charter rate of the two VLCCs acquired
in June 2015, compared to the existing fleet.
EBITDA increased by approximately $7.5 million to
$34.1 million for the six month period ended June 30,
2016, as compared to $26.6 million for the same period in
2015. The increase in EBITDA was mainly due to an $11.8
million increase in revenue. The above increase was partially
mitigated by a: (a) $3.2 million increase in management fees due to
the two VLCCs acquired in June 2015; (b) $0.5 million increase
in general and administrative expenses; (c) approximately $0.4
million increase in time charter expenses; and (d) $0.1 million
increase in other (expense)/ income, net.
The reserve for estimated maintenance and replacement capital
expenditures for the six month period ended June 30, 2016 and
2015 was $7.2 million and $4.5 million, respectively (please see
Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Midstream generated an Operating Surplus for the six
month period ended June 30, 2016 of $21.3 million. Operating
Surplus is a non-GAAP financial measure used by certain investors
to assist in evaluating a partnership’s ability to make quarterly
cash distributions (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Net income for the six month period ended June 30, 2016 was
$13.4 million compared to $11.7 million for the six month
period ended June 30, 2015. The increase of $1.7 million in
net income was due to a: (a) $7.5 million increase in EBITDA; and
(b) $0.1 million increase in interest income; partially mitigated
by a: (i) $2.1 million increase in interest expenses and finance
cost; (ii) $2.8 million increase in depreciation and amortization;
and (iii) $1.0 million increase in direct vessel
expenses.
Earnings per common unit for the six month period ended
June 30, 2016 was $0.65.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Midstream’s core fleet performance for the
three and six month periods ended June 30, 2016 and 2015.
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Three Month Period ended
June 30, 2016 (unaudited) |
|
Three Month Period ended
June 30, 2015 (unaudited) |
|
Six Month Period ended
June 30, 2016 (unaudited) |
|
Six Month Period ended
June 30, 2015 (unaudited) |
FLEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days(1) |
|
|
488 |
|
|
390 |
|
|
|
|
1,034 |
|
|
750 |
|
Operating days(2) |
|
|
485 |
|
|
390 |
|
|
|
|
1,030 |
|
|
750 |
|
Fleet utilization(3) |
|
|
99.4 |
% |
|
100.0 |
% |
|
|
|
99.6 |
% |
|
100.0 |
% |
Vessels operating at
period end |
|
|
6 |
|
|
6 |
|
|
|
|
6 |
|
|
6 |
|
AVERAGE DAILY
RESULTS |
|
|
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|
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|
|
Time Charter Equivalent
per day(4) |
|
$ |
45,783 |
|
|
46,545 |
|
|
|
$ |
44,565 |
|
|
46,234 |
|
(1 |
) |
Available days for the fleet represent total calendar days the
vessels were in Navios Midstream’s possession for the relevant
period after subtracting off-hire days associated with scheduled
repairs, dry dockings or special surveys. The shipping industry
uses available days to measure the number of days in a relevant
period during which a vessel is capable of generating revenues.
|
(2 |
) |
Operating days is the number of available days in the relevant
period less the aggregate number of days that the vessels are
off-hire due to any reason, including unforeseen circumstances. The
shipping industry uses operating days to measure the aggregate
number of days in a relevant period during which vessels actually
generate revenues. |
(3 |
) |
Fleet
utilization is the percentage of time that Navios Midstream’s
vessels were available for revenue generating available days, and
is determined by dividing the number of operating days during a
relevant period by the number of available days during that period.
The shipping industry uses fleet utilization to measure efficiency
in finding employment for vessels and minimizing the amount of days
that its vessels are off-hire for reasons other than scheduled
repairs, drydockings or special surveys. |
(4 |
) |
Time
Charter Equivalent (“TCE”) rates: TCE rates are defined as voyage
and time charter revenues less voyage expenses during a period
divided by the number of available days during the period. The TCE
rate is a standard shipping industry performance measure used
primarily to present the actual daily earnings generated by vessels
on various types of charter contracts for the number of available
days of the fleet. |
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Conference Call details:
Navios Midstream's management will host a
conference call today, Thursday, July 28, 2016 to discuss the
results for the second quarter and six months ended June 30,
2016.
Conference Call details:
Call Date/Time: Thursday, July 28, 2016 at 08:30
am ETCall Title: Navios Midstream Q2 2016 Financial Results
Conference CallUS Dial In: +1.866.703.4207 International Dial In:
+1.636.692.6440 Conference ID: 2661 4048
The conference call replay will be available two
hours after the live call and remain available for one week at the
following numbers:
US Replay Dial In: +1.800.585.8367 International
Replay Dial In: +1.404.537.3406 Conference ID: 2661 4048
Slides and audio webcast:There will also be a live
webcast of the conference call, through the Navios Midstream’s
website (www.navios-midstream.com) under “Investors”. Participants
to the live webcast should register on the website approximately 10
minutes prior to the start of the webcast.
A supplemental slide presentation will be
available on the Navios Midstream’s website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Midstream Partners
L.P.
Navios Maritime Midstream Partners L.P. is a
publicly traded master limited partnership which owns and operates
crude oil tankers under long-term employment contracts. For more
information, please visit our website at
www.navios-midstream.com.
Forward-Looking Statements
This press release contains forward-looking statements (as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events and expectations, including with respect
to Navios Midstream’s future dividends and Navios Midstream's
growth strategy and measures to implement such strategy; including
expected vessel acquisitions and entering into further time
charters. Words such as "may", "expects", "intends", "plans",
"believes", "anticipates", "hopes", "estimates", and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters. These forward-looking
statements are based on the information available to, and the
expectations and assumptions deemed reasonable by, Navios Midstream
at the time these statements were made. Although Navios Midstream
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Midstream. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the creditworthiness of
our charterers and the ability of our contract counterparties to
fulfill their obligations to us, tanker industry trends, including
charter rates and vessel values and factors affecting vessel supply
and demand, the aging of our vessels and resultant increases in
operation and drydocking costs, the loss of any customer or charter
or vessel, our ability to repay outstanding indebtedness, to obtain
additional financing and to obtain replacement charters for our
vessels, in each case, at commercially acceptable rates or at all,
increases in costs and expenses, including but not limited to: crew
wages, insurance, provisions, port expenses, lube oil, bunkers,
repairs, maintenance and general and administrative expenses, the
expected cost of, and our ability to comply with, governmental
regulations and maritime self-regulatory organization standards, as
well as standard regulations imposed by our charterers applicable
to our business, potential liability from litigation and our vessel
operations, including discharge of pollutants, general domestic and
international political conditions, competitive factors in the
market in which Navios Midstream operates; risks associated with
operations outside the United States; and other factors listed
from time to time in the Navios Midstream's filings with
the Securities and Exchange Commission including its Form
20-Fs and Form 6-Ks. Navios Midstream expressly disclaims any
obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in Navios Midstream's expectations with respect
thereto or any change in events, conditions or circumstances on
which any statement is based. Navios Midstream makes no prediction
or statement about the performance of its common units.
Investor Relations Contacts
Navios Maritime Midstream Partners L.P. +1 (212) 906
8647Investors@navios-midstream.com
EXHIBIT 1
NAVIOS
MARITIME MIDSTREAM PARTNERS L.P.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Expressed in
thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
June 30,2016 |
|
|
December 31,2015 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
38,219 |
|
|
$ |
37,834 |
|
Accounts receivable,
net |
|
|
6,904 |
|
|
|
5,110 |
|
Prepaid expenses and other
current assets |
|
|
117 |
|
|
|
112 |
|
Due from related
parties |
|
|
7,042 |
|
|
|
2,804 |
|
Total current
assets |
|
|
52,282 |
|
|
|
45,860 |
|
Vessels, net |
|
|
389,556 |
|
|
|
400,192 |
|
Intangible assets |
|
|
26,807 |
|
|
|
28,450 |
|
Deferred dry dock and
special survey costs, net |
|
|
9,609 |
|
|
|
6,066 |
|
Total non-current
assets |
|
|
425,972 |
|
|
|
434,708 |
|
Total
assets |
|
$ |
478,254 |
|
|
$ |
480,568 |
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,089 |
|
|
$ |
412 |
|
Accrued expenses |
|
|
559 |
|
|
|
654 |
|
Due to related
parties |
|
|
403 |
|
|
|
438 |
|
Deferred revenue |
|
|
2,494 |
|
|
|
1,931 |
|
Current portion of
long-term debt, net of deferred finance costs and discount |
|
|
654 |
|
|
|
643 |
|
Total current
liabilities |
|
|
6,199 |
|
|
|
4,078 |
|
Long-term debt, net of
deferred finance costs and discount |
|
|
196,841 |
|
|
|
197,176 |
|
Total non-current
liabilities |
|
|
196,841 |
|
|
|
197,176 |
|
Total
liabilities |
|
$ |
203,040 |
|
|
$ |
201,254 |
|
Commitments and
contingencies |
|
|
— |
|
|
|
— |
|
Total Partners’
capital |
|
|
|
|
|
|
|
|
Common Unitholders
(9,342,692 units issued and outstanding at June 30, 2016 and
December 31, 2015) |
|
|
124,466 |
|
|
|
126,317 |
|
Subordinated Series A
Unitholders (1,592,920 units issued and outstanding at
June 30, 2016 and December 31, 2015) |
|
|
27,063 |
|
|
|
27,379 |
|
Subordinated Unitholders
(9,342,692 units issued and outstanding at June 30, 2016 and
December 31, 2015) |
|
|
118,303 |
|
|
|
120,154 |
|
General Partner (413,843
units issued and outstanding at June 30, 2016 and at
December 31, 2015) |
|
|
5,382 |
|
|
|
5,464 |
|
Partners’
capital |
|
|
275,214 |
|
|
|
279,314 |
|
Total liabilities
and Partners’ capital |
|
$ |
478,254 |
|
|
$ |
480,568 |
|
NAVIOS
MARITIME MIDSTREAM PARTNERS L.P. |
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
(Expressed in
thousands of U.S. Dollars, except per unit amounts) |
|
|
|
Three Month Period
ended June 30, 2016 (unaudited) |
|
Three Month Period
ended June 30, 2015 (unaudited) |
|
Six
Month Period ended June 30, 2016 (unaudited) |
|
Six
Month Period ended June 30, 2015 (unaudited) |
Revenue |
|
$ |
22,695 |
|
|
$ |
18,350 |
|
|
$ |
46,844 |
|
|
$ |
35,053 |
|
Time charter expenses |
|
|
(338 |
) |
|
|
(197 |
) |
|
|
(749 |
) |
|
|
(377 |
) |
Direct vessel
expenses |
|
|
(952 |
) |
|
|
(289 |
) |
|
|
(1,588 |
) |
|
|
(578 |
) |
Management fees (entirely
through related party transactions) |
|
|
(5,187 |
) |
|
|
(3,705 |
) |
|
|
(10,374 |
) |
|
|
(7,125 |
) |
General and administrative
expenses |
|
|
(724 |
) |
|
|
(482 |
) |
|
|
(1,550 |
) |
|
|
(1,017 |
) |
Depreciation and
amortization |
|
|
(6,378 |
) |
|
|
(5,076 |
) |
|
|
(12,779 |
) |
|
|
(9,953 |
) |
Interest income |
|
|
69 |
|
|
|
— |
|
|
|
69 |
|
|
|
— |
|
Interest expenses and
finance cost |
|
|
(3,284 |
) |
|
|
(3,228 |
) |
|
|
(6,440 |
) |
|
|
(4,363 |
) |
Other (expense)/ income,
net |
|
|
(12 |
) |
|
|
21 |
|
|
|
(49 |
) |
|
|
66 |
|
Net
income |
|
$ |
5,889 |
|
|
$ |
5,394 |
|
|
$ |
13,384 |
|
|
$ |
11,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit
(basic and diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders: |
|
$ |
0.28 |
|
|
|
0.26 |
|
|
$ |
0.65 |
|
|
|
0.59 |
|
Subordinated Series A
unitholders: |
|
$ |
0.28 |
|
|
|
1.82 |
|
|
$ |
0.65 |
|
|
|
3.63 |
|
Subordinated
unitholders: |
|
$ |
0.28 |
|
|
|
0.26 |
|
|
$ |
0.65 |
|
|
|
0.59 |
|
NAVIOS
MARITIME MIDSTREAM PARTNERS L.P.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Expressed in
thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
Six
Month Period Ended June 30, 2016 (unaudited) |
|
Six
Month Period Ended June 30, 2015 (unaudited) |
Operating
Activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,384 |
|
|
$ |
11,706 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
12,779 |
|
|
|
9,953 |
|
Amortization of deferred
finance fees and bond premium |
|
|
701 |
|
|
|
1,964 |
|
Amortization of dry dock
and special survey costs |
|
|
1,588 |
|
|
|
578 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
(Increase)/ decrease in
prepaid expenses and other current assets |
|
|
(5 |
) |
|
|
129 |
|
Payment for
Drydocking |
|
|
(5,131 |
) |
|
|
(99 |
) |
Increase in accounts
receivable |
|
|
(1,794 |
) |
|
|
(2,965 |
) |
Increase in accounts
payable |
|
|
1,677 |
|
|
|
220 |
|
Decrease in accrued
expenses |
|
|
(95 |
) |
|
|
(135 |
) |
Decrease in due to/ from
related parties |
|
|
(4,273 |
) |
|
|
(4,190 |
) |
Increase in deferred
revenue |
|
|
563 |
|
|
|
556 |
|
Net cash provided
by operating activities |
|
$ |
19,394 |
|
|
$ |
17,717 |
|
Investing
Activities |
|
|
|
|
|
|
|
|
Acquisition of
vessels |
|
|
(500 |
) |
|
|
(72,252 |
) |
Net cash used in
investing activities |
|
$ |
(500 |
) |
|
$ |
(72,252 |
) |
Financing
Activities |
|
|
|
|
|
|
|
|
Proceeds from Long term
debt, net of deferred finance costs and discount |
|
|
— |
|
|
|
198,081 |
|
Loan repayment |
|
|
(1,025 |
) |
|
|
(126,000 |
) |
IPO expenses |
|
|
— |
|
|
|
(2,922 |
) |
Dividend paid |
|
|
(17,484 |
) |
|
|
(11,627 |
) |
Proceeds from issuance of
general partner units |
|
|
— |
|
|
|
551 |
|
Net cash (used
in)/ provided by financing activities |
|
$ |
(18,509 |
) |
|
$ |
58,083 |
|
Net increase in
cash and cash equivalents |
|
|
385 |
|
|
|
3,548 |
|
Cash and cash
equivalents, beginning of year |
|
$ |
37,834 |
|
|
$ |
30,877 |
|
Cash and cash
equivalents, end of year |
|
$ |
38,219 |
|
|
$ |
34,425 |
|
Supplemental disclosures
of cash flow information |
|
|
|
|
|
|
|
|
Cash
interest paid |
|
$ |
5,760 |
|
|
$ |
2,375 |
|
Non-cash financing activities |
|
|
|
|
|
|
|
|
Accrued IPO
expenses |
|
$ |
— |
|
|
$ |
430 |
|
|
|
|
|
|
|
|
|
|
EXHIBIT 2
|
|
|
|
|
|
|
Owned Vessels |
|
Type |
|
Built |
|
Capacity(DWT) |
Shinyo Kieran |
|
VLCC |
|
2011 |
|
|
297,066 |
Shinyo Saowalak |
|
VLCC |
|
2010 |
|
|
298,000 |
Nave Celeste |
|
VLCC |
|
2003 |
|
|
298,717 |
Shinyo Kannika |
|
VLCC |
|
2001 |
|
|
287,175 |
Shinyo Ocean |
|
VLCC |
|
2001 |
|
|
281,395 |
C. Dream |
|
VLCC |
|
2000 |
|
|
298,570 |
Option Vessels(1) |
|
Type |
|
Built |
|
Capacity(DWT) |
Nave Buena Suerte |
|
VLCC |
|
2011 |
|
|
297,491 |
Nave Quasar |
|
VLCC |
|
2010 |
|
|
297,376 |
Nave
Galactic |
|
VLCC |
|
2009 |
|
|
297,168 |
Nave Neutrino |
|
VLCC |
|
2003 |
|
|
298,287 |
Nave Electron |
|
VLCC |
|
2002 |
|
|
305,178 |
|
|
|
|
|
|
|
|
(1) Navios Midstream has options,
exercisable through November 18, 2016, to acquire up to five VLCCs
at fair market value from Navios Maritime Acquisition
Corporation.
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA
EBITDA represents net income before interest and finance costs,
before depreciation and amortization and income taxes. We use
EBITDA as a liquidity measure and reconcile EBITDA to net cash
provided by/(used in) operating activities, the most comparable
U.S. GAAP liquidity measure. EBITDA in this document is calculated
as follows: net cash provided by/(used in) operating activities
adding back, when applicable and as the case may be, the effect of
(i) net increase/(decrease) in operating assets, (ii) net
(increase)/decrease in operating liabilities, (iii) net interest
cost, (iv) amortization of deferred finance charges and other
related expenses, (v) provision for losses on accounts receivable,
(vi) equity in affiliates, net of dividends received, (vii)
payments for drydock and special survey costs, (viii) gain/(loss)
on sale of assets/subsidiaries, and (ix) impairment charges. Navios
Midstream believes that EBITDA is the basis upon which liquidity
can be assessed and presents useful information to investors
regarding Navios Midstream’s ability to service and/or incur
indebtedness, pay capital expenditures, meet working capital
requirements and make cash distributions. Navios Midstream also
believes that EBITDA is used (i) by potential lenders to
evaluate potential transactions; (ii) to evaluate and price
potential acquisition candidates; and (iii) by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry.
EBITDA has limitations as an analytical tool, and should not be
considered in isolation or as a substitute for the analysis of
Navios Midstream’s results as reported under U.S. GAAP. Some of
these limitations are: (i) EBITDA does not reflect changes in, or
cash requirements for, working capital needs; and
(ii) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future. EBITDA does not reflect any cash
requirements for such capital expenditures. As a result of these
limitations, EBITDA should not be considered as a principal
indicator of Navios Midstream’s performance. Furthermore, our
calculation of EBITDA may not be comparable to that reported by
other companies due to differences in methods of calculation.
2. Operating Surplus
Operating Surplus represents net income adjusted
for depreciation and amortization expense, non-cash interest
expense and estimated maintenance and replacement capital
expenditures. Maintenance and replacement capital expenditures are
those capital expenditures required to maintain over the long term
the operating capacity of, or the revenue generated by, Navios
Midstream’s capital assets.
Operating Surplus is a quantitative measure used
in the publicly-traded partnership investment community to assist
in evaluating a partnership’s ability to make quarterly cash
distributions. Operating Surplus is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
3. Available Cash
Available Cash generally means for each fiscal
quarter, all cash on hand at the end of the quarter:
- less the amount of cash reserves established by the Board of
Directors to:
- provide for the proper conduct of Navios Midstream’s business
(including reserve for maintenance and replacement capital
expenditures);
- comply with applicable law, any of Navios Midstream’s debt
instruments, or other agreements; or
- provide funds for distributions to the unitholders and to the
general partner for any one or more of the next four quarters;
- plus all cash on hand on the date of determination of available
cash for the quarter resulting from working capital borrowings made
after the end of the quarter. Working capital borrowings are
generally borrowings that are made under any revolving credit or
similar agreement used solely for working capital purposes or to
pay distributions to partners.
Available Cash is a quantitative measure used in the
publicly-traded partnership investment community to assist in
evaluating a partnership’s ability to make quarterly cash
distributions. Available cash is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
4. Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period ended
June 30, 2016 ($ ‘000) (unaudited) |
|
Three Month Period ended
June 30, 2015 ($ ‘000) (unaudited) |
|
Six Month Period ended
June 30, 2016 ($ ‘000) (unaudited) |
|
Six Month Period ended
June 30, 2015 ($ ‘000) (unaudited) |
Net cash provided by
operating activities |
|
$ |
|
9,464 |
|
|
$ |
8,011 |
|
|
$ |
19,394 |
|
|
$ |
17,717 |
|
Net increase in operating
assets |
|
|
|
6,586 |
|
|
|
1,935 |
|
|
|
6,930 |
|
|
|
2,935 |
|
Net (increase)/ decrease
in operating liabilities |
|
|
|
(2,481 |
) |
|
|
2,654 |
|
|
|
2,128 |
|
|
|
3,549 |
|
Net interest cost |
|
|
|
3,215 |
|
|
|
3,228 |
|
|
|
6,371 |
|
|
|
4,363 |
|
Amortization of deferred
finance cost and bond premium |
|
|
|
(350 |
) |
|
|
(1,841 |
) |
|
|
(701 |
) |
|
|
(1,964 |
) |
|
|
|
|
|
EBITDA |
|
$ |
|
16,434 |
|
|
$ |
13,987 |
|
|
$ |
34,122 |
|
|
$ |
26,600 |
|
|
|
|
|
|
Cash interest paid |
|
$ |
|
(2,923 |
) |
|
$ |
(1,334 |
) |
|
$ |
(5,760 |
) |
|
$ |
(2,375 |
) |
Cash interest income |
|
|
|
69 |
|
|
|
— |
|
|
|
69 |
|
|
|
— |
|
Maintenance and
replacement capital expenditures |
|
$ |
|
(3,580 |
) |
|
$ |
(2,354 |
) |
|
$ |
(7,160 |
) |
|
$ |
(4,502 |
) |
Operating
Surplus |
|
$ |
|
10,000 |
|
|
$ |
10,299 |
|
|
$ |
21,271 |
|
|
$ |
19,723 |
|
Cash distribution paid
relating to the first six months |
|
|
— |
|
|
— |
|
|
|
(8,742 |
) |
|
|
(7,865 |
) |
Cash reserves |
|
$ |
|
(1,258 |
) |
|
$ |
(1,763 |
) |
|
$ |
(3,787 |
) |
|
$ |
(3,322 |
) |
Available cash for
distribution |
|
$ |
|
8,742 |
|
|
$ |
8,536 |
|
|
$ |
8,742 |
|
|
$ |
8,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period ended
June 30, 2016 ($ ‘000) (unaudited) |
|
Three Month Period ended
June 30, 2015 ($ ‘000) (unaudited) |
|
Six Month Period ended
June 30, 2016 ($ ‘000) (unaudited) |
|
Six Month Period ended
June 30, 2015 ($ ‘000) (unaudited) |
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
9,464 |
|
|
$ |
8,011 |
|
|
$ |
19,394 |
|
|
$ |
17,717 |
|
Net cash used in investing
activities |
|
$ |
— |
|
|
$ |
(72,252 |
) |
|
$ |
(500 |
) |
|
$ |
(72,252 |
) |
Net cash (used in)/
provided by financing activities |
|
$ |
(9,254 |
) |
|
$ |
65,935 |
|
|
$ |
(18,509 |
) |
|
$ |
58,083 |
|
Investor Relations Contacts
Navios Maritime Midstream Partners L.P.
+1 (212) 906 8647
Investors@navios-midstream.com
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