Navios Maritime Partners L.P. (“Navios Partners” or the “Company”)
(NYSE:NMM), an international owner and operator of container and
dry bulk vessels, today reported its financial results for the
second quarter and six months ended June 30, 2016.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “For the second quarter of 2016,
we recorded $44.9 million of revenue and earned $11.8 million of
EBITDA.
Angeliki Frangou continued, “Navios Partners is
a unique platform in the dry sector. Since the beginning of
2016, we have fortified our balance sheet, having reduced our debt
by $44.6 million. As a result, our net debt to book
capitalization is 42.5% and interest coverage is 4.3x. In
addition, we have no significant debt maturities until 2018 and
expect to generate $45.0 million in free cash flow for the
remainder of 2016. We also benefit from annual operating
savings that we enjoy through the economies of scale achieved by
our sponsor, Navios Maritime Holdings Inc.”
Charter Restructuring with HMM
Pursuant to the charter restructuring
documentation executed on July 15, 2016, it has been agreed that
the hire rate of five Container vessels chartered out to Hyundai
Merchant Marine Co., Ltd. (“HMM”) will be reduced by 20%, as
follows:
- With effect from (and including) July 18, 2016 until (and
including) December 31, 2019, hire rate shall be reduced to $24,400
per day pro rata.
- With effect from (and including) January 1, 2020, hire rate
shall be restored to the rate of $30,500 per day pro rata until
redelivery.
In exchange under the charter restructuring
agreement, the Company received:
- $7.7 million principal amount of senior, unsecured notes,
amortizing subject to available cash flows, accruing interest at 3%
per annum payable on maturity in July 2024; and
- 3.7 million freely tradable shares of HMM.
In August 2016, Navios Partners sold the 3.7
million shares of HMM generating net cash proceeds of approximately
$21.3 million.
Sale of MSC Cristina
In June 2016, Navios Partners agreed to sell to
an unrelated third party the MSC Cristina, a 2011 South
Korean-built Container vessel of 13,100 TEU, for a total net sale
price of $125.0 million, with delivery expected by the first
quarter of 2017, subject to signing of definitive
documentation.
Long-Term Cash Flow
Navios Partners has entered into medium to
long-term time charter-out agreements for its vessels with a
remaining average term of 2.4 years. Navios Partners has currently
contracted out 94.9% of its available days for 2016, 55.5% for 2017
and 44.9% for 2018, including index-linked charters, respectively,
expecting to generate revenues of approximately $191.2 million,
$122.3 million and $103.9 million, respectively. The average
expected daily charter-out rate for the fleet is $18,744, $25,526
and $27,200 for 2016, 2017 and 2018, respectively.
Navios Partners has insurance on certain
long-term charter-out contracts of drybulk vessels for credit
default occurring until the end of 2016, through an agreement with
Navios Maritime Holdings Inc., up to a maximum cash payment of
$20.0 million.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of income for the three and six months
ended June 30, 2016 and 2015. The quarterly 2016 and 2015
information was derived from the unaudited condensed consolidated
financial statements for the respective periods. Adjusted EBITDA,
Earnings per Common unit, Adjusted Net Income and Operating Surplus
are non-GAAP financial measures and should not be used in isolation
or substitution for Navios Partners’ results.
| |
Three Month Period Ended June 30,
2016 |
|
Three Month Period Ended June 30,
2015 |
|
Six Month Period Ended June 30,
2016 |
|
Six Month Period Ended June 30,
2015 |
| (in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| Revenue |
$ |
44,877 |
|
|
$ |
56,473 |
|
$ |
90,518 |
|
|
$ |
113,259 |
| Net (loss)/ income |
$ |
(16,807 |
) |
|
$ |
11,355 |
|
$ |
(16,598 |
) |
|
$ |
22,234 |
| Adjusted Net income
(*) |
$ |
386.0 |
|
|
$ |
11,355 |
|
$ |
595.0 |
|
|
$ |
22,234 |
| EBITDA |
$ |
11,804 |
|
|
$ |
38,712 |
|
$ |
39,875 |
|
|
$ |
76,675 |
| Adjusted EBITDA
(*) |
$ |
28,997 |
|
|
$ |
38,712 |
|
$ |
57,068 |
|
|
$ |
76,675 |
| Earnings per Common
unit (basic and diluted) |
$ |
(0.20 |
) |
|
$ |
0.13 |
|
$ |
(0.20 |
) |
|
$ |
0.25 |
| Operating Surplus |
$ |
19,434 |
|
|
$ |
29,320 |
|
$ |
37,718 |
|
|
$ |
57,126 |
| Maintenance and
Replacement Capital expenditure reserve |
$ |
2,975 |
|
|
$ |
3,449 |
|
$ |
5,949 |
|
|
$ |
6,674 |
(*) Adjusted EBITDA and Adjusted Net Income for the three and
six months ended June 30, 2016 have been adjusted to
exclude a $17.2 million impairment loss on one of our
vessels.
Three month periods ended June
30, 2016 and 2015
Time charter and voyage revenues for the three
month period ended June 30, 2016 decreased by
$11.6 million or 20.5% to $44.9 million, as compared to
$56.5 million for the same period in 2015. The decrease was
mainly attributable to the decrease in TCE to $16,005 per day for
the three month period ended June 30, 2016, from $20,679 per
day for the three month period ended June 30, 2015. The
decrease in time charter and voyage revenues was primarily due to
the decline in the freight market during 2016, as compared to the
same period in 2015, and was partially mitigated by an increase in
revenue due to the delivery of the MSC Cristina in the second
quarter of 2015. As a result of the vessel acquisition in April
2015, available days of the fleet increased to 2,821 days for
the three month period ended June 30, 2016, as compared to
2,659 days for the three month period ended June 30,
2015.
EBITDA for the three months ended June 30, 2016
was negatively affected by the accounting effect of a $17.2 million
impairment loss on one of our vessels. Excluding this item,
Adjusted EBITDA decreased by $9.7 million to
$29.0 million for the three month period ended June 30,
2016, as compared to $38.7 million for the same period in 2015. The
decrease in Adjusted EBITDA was primarily due to a: (i) $11.6
million decrease in revenue; (ii) $0.6 million increase in
management fees mainly due to the increased number of vessels;
(iii) $0.7 million increase in general and administrative
expenses; and (iv) $0.5 million increase in time and voyage
charter expenses. The above decrease was partially mitigated
by a $3.6 million increase in other income/ expense, net.
The reserve for estimated maintenance and
replacement capital expenditures for the three month period ended
June 30, 2016 and 2015 was $3.0 million and $3.4 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated Operating Surplus for
the three month period ended June 30, 2016 of
$19.4 million, compared to $29.3 million for the three
month period ended June 30, 2015. 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 months ended June 30,
2016 was negatively affected by the accounting effect of a $17.2
million impairment loss on one of our vessels. Excluding this item,
Adjusted net income for the three months ended June 30, 2016
amounted to $0.4 million compared to $11.4 million for
the three months ended June 30, 2015. The decrease in Adjusted
net income of $11.0 million was due to a: (i) $9.7 million decrease
in adjusted EBITDA; (ii) $0.8 million increase in direct vessel
expenses, comprising of the amortization of dry dock and special
survey costs; and (iii) $0.8 million increase in interest expenses
and finance cost, net. The above decrease was partially mitigated
by a $0.2 million decrease in depreciation and amortization
expense.
Six month periods ended June
30, 2016 and 2015
Time charter and voyage revenues for the six
month period ended June 30, 2016 decreased by
$22.7 million or 20.1% to $90.5 million, as compared to
$113.3 million for the same period in 2015 The decrease was
mainly attributable to the decrease in TCE to $15,764 per day for
the six month period ended June 30, 2016, from $20,248 per day
for the six month period ended June 30, 2015. The decrease in
time charter and voyage revenues was primarily due to the decline
in the freight market during 2016, as compared to the same period
in 2015, and was partially mitigated by an increase in revenue due
to the delivery of the MSC Cristina in the second quarter of 2015.
As a result of the vessel acquisition in April 2015, available days
of the fleet increased to 5,642 days for the six month period
ended June 30, 2016, as compared to 5,431 days for the
six month period ended June 30, 2015.
EBITDA for the six months ended June 30, 2016
was negatively affected by the accounting effect of a $17.2 million
impairment loss on one of our vessels. Excluding this item,
Adjusted EBITDA decreased by $19.6 million to
$57.1 million for the six month period ended June 30,
2016, as compared to $76.7 million for the same period in
2015. The decrease in Adjusted EBITDA was primarily due to a:
(i) $22.7 million decrease in revenue; (ii) $1.9
million increase in management fees due to the increased number of
vessels and the increased daily management fee; (iii) $1.3
million increase in general and administrative expenses; and
(iv) $0.7 million increase in other expenses. The above
decrease was partially mitigated by a: (i) $1.1 million
decrease in time charter and voyage expenses; and (ii) $5.8
million increase in other income.
The reserve for estimated maintenance and
replacement capital expenditures for the six month periods ended
June 30, 2016 and 2015 was $5.9 million and $6.7 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated operating surplus for
the six month period ended June 30, 2016 of
$37.7 million, compared to $57.1 million for the six
month period ended June 30, 2015. 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 months ended June 30,
2016 was negatively affected by the accounting effect of a $17.2
million impairment loss on one of our vessels. Excluding this item,
Adjusted net income for the six month period ended June 30,
2016 amounted to $0.6 million compared to $22.2 million for
the six month period ended June 30, 2015. The decrease in
Adjusted net income of $21.6 million was due to a: (i) $19.6
million decrease in adjusted EBITDA; (ii) $1.7 million increase in
direct vessel expenses, comprising of the amortization of dry dock
and special survey costs; and (iii) $0.5 million increase in
depreciation and amortization expense. The above decrease was
partially mitigated by a: (i) $0.1 million decrease in interest
expense and finance cost, net and (ii) $0.1 million increase in
interest income.
Fleet Employment Profiles
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
and six month periods ended June 30, 2016 and 2015.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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) |
|
| Available Days(1) |
|
|
2,821 |
|
|
|
2,659 |
|
|
|
5,642 |
|
|
|
5,431 |
|
| Operating Days(2) |
|
|
2,805 |
|
|
|
2,659 |
|
|
|
5,625 |
|
|
|
5,428 |
|
| Fleet Utilization(3) |
|
|
99.85 |
% |
|
|
100.0 |
% |
|
|
99.91 |
% |
|
|
100.0 |
% |
| Time Charter Equivalent
(per day) |
|
$ |
16,005 |
|
|
$ |
20,679 |
|
|
$ |
15,764 |
|
|
$ |
20,248 |
|
| Vessels operating at
period end |
|
|
31 |
|
|
|
31 |
|
|
|
31 |
|
|
|
31 |
|
|
|
(1 |
) |
Available days for the fleet represent total calendar days the
vessels were in Navios Partners’ 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 Partners’ 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 |
) |
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. |
Conference Call details:
Navios Partners' management will host a
conference call today, Thursday, August 11, 2016 to discuss the
results for the second quarter and six months ended June 30,
2016.
Call Date/Time: Thursday, August 11, 2016 at 8:30 am ET Call
Title: Navios Partners Q2 2016 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 2661 5706The 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 5706
Slides and audio webcast:
There will also be a live webcast of the
conference call, through the Navios Partners website
(www.navios-mlp.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 Partners’ website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Partners
L.P.
Navios Partners (NYSE:NMM) is a publicly traded
master limited partnership which owns and operates container and
dry cargo vessels. For more information, please visit our website
at www.navios-mlp.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 including Navios
Partners’ 2016 cash flow generation, future contracted revenues,
future distributions and its ability to have a dividend going
forward, opportunities to reinvest cash accretively in a fleet
renewal program or otherwise, potential capital gains, our ability
to take advantage of dislocation in the market and Navios Partners’
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 Partners at the time these statements
were made. Although Navios Partners 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
Partners. 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, uncertainty relating to global trade,
including prices of seaborne commodities and continuing issues
related to seaborne volume and ton miles, our continued ability to
enter into long-term time charters, our ability to maximize the use
of our vessels, expected demand in the dry cargo shipping sector in
general and the demand for our Panamax, Capesize, Ultra-Handymax
and Container vessels in particular, fluctuations in charter rates
for dry cargo carriers and container vessels, the aging of our
fleet and resultant increases in operations costs, the loss of any
customer or charter or vessel, the financial condition of our
customers, changes in the availability and costs of funding due to
conditions in the bank market, capital markets and other factors,
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, general domestic and international political
conditions, competitive factors in the market in which Navios
Partners operates; risks associated with operations outside the
United States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners
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 Partners’
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based. Navios
Partners makes no prediction or statement about the performance of
its common units.
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P. CONDENSED
CONSOLIDATED BALANCE SHEETS(Expressed in thousands of U.S.
Dollars except unit data)
| |
|
|
|
|
|
|
|
|
|
| |
|
|
June 30,2016(unaudited) |
|
|
December 31,2015(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
$ |
25,327 |
|
|
$ |
26,750 |
|
| Restricted cash |
|
|
|
1,572 |
|
|
|
7,789 |
|
| Accounts receivable,
net |
|
|
|
4,644 |
|
|
|
3,999 |
|
| Prepaid expenses and
other current assets |
|
|
|
1,677 |
|
|
|
1,297 |
|
| Total current
assets |
|
|
|
33,220 |
|
|
|
39,835 |
|
| Vessels, net |
|
|
|
1,058,761 |
|
|
|
1,230,049 |
|
| Vessel held for sale |
|
|
|
125,000 |
|
|
|
— |
|
| Deferred dry dock and
special survey costs, net and other long term assets |
|
|
|
21,250 |
|
|
|
22,232 |
|
| Investment in
affiliates |
|
|
|
1,340 |
|
|
|
1,315 |
|
| Loans receivable from
affiliates |
|
|
|
1,971 |
|
|
|
1,521 |
|
| Intangible assets |
|
|
|
46,820 |
|
|
|
55,339 |
|
| Total non-current
assets |
|
|
|
1,255,142 |
|
|
|
1,310,456 |
|
| Total
assets |
|
|
$ |
1,288,362 |
|
|
$ |
1,350,291 |
|
| LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
2,782 |
|
|
$ |
2,706 |
|
| Accrued expenses |
|
|
|
2,072 |
|
|
|
2,516 |
|
| Deferred revenue |
|
|
|
4,855 |
|
|
|
4,290 |
|
| Current portion of
long-term debt, net |
|
|
|
38,512 |
|
|
|
23,336 |
|
| Amounts due to related
parties |
|
|
|
7,352 |
|
|
|
8,680 |
|
| Total current
liabilities |
|
|
|
55,573 |
|
|
|
41,528 |
|
| Long-term debt, net |
|
|
|
516,495 |
|
|
|
574,742 |
|
| Deferred revenue |
|
|
|
677 |
|
|
|
1,806 |
|
| Total non-current
liabilities |
|
|
|
517,172 |
|
|
|
576,548 |
|
| Total
liabilities |
|
|
|
572,745 |
|
|
|
618,076 |
|
| Commitments and
contingencies |
|
|
|
— |
|
|
|
— |
|
| Partners’
capital: |
|
|
|
|
|
|
|
|
|
| Common Unitholders
(83,079,710 units issued and outstanding at June 30, 2016 and
December 31, 2015, respectively) |
|
|
|
711,780 |
|
|
|
728,046 |
|
| General Partner (1,695,509
units issued and outstanding at June 30, 2016 and
December 31, 2015, respectively) |
|
|
|
3,837 |
|
|
|
4,169 |
|
| Total partners’
capital |
|
|
|
715,617 |
|
|
|
732,215 |
|
| Total liabilities
and partners’ capital |
|
|
$ |
1,288,362 |
|
|
$ |
1,350,291 |
|
| |
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (Expressed in thousands of U.S. Dollars except
unit and per unit amounts)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three MonthPeriod EndedJune 30, 2016(unaudited) |
|
|
Three MonthPeriod EndedJune 30, 2015(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2016(unaudited) |
|
Six
MonthPeriod EndedJune 30, 2015(unaudited) |
|
| Time charter and voyage revenues |
|
$ |
|
44,877 |
|
|
|
$ |
|
56,473 |
|
|
|
$ |
|
90,518 |
|
|
$ |
|
113,259 |
|
|
| Time charter and voyage
expenses |
|
|
|
(1,962 |
) |
|
|
|
|
(1,477 |
) |
|
|
|
|
(3,811 |
) |
|
|
|
(4,948 |
) |
|
| Direct vessel
expenses |
|
|
|
(1,526 |
) |
|
|
|
|
(757 |
) |
|
|
|
|
(2,990 |
) |
|
|
|
(1,294 |
) |
|
| Management fees (entirely
through related parties transactions) |
|
|
|
(14,719 |
) |
|
|
|
|
(14,141 |
) |
|
|
|
|
(29,439 |
) |
|
|
|
(27,542 |
) |
|
| General and administrative expenses |
|
|
|
(2,611 |
) |
|
|
|
|
(1,949 |
) |
|
|
|
|
(5,099 |
) |
|
|
|
(3,824 |
) |
|
| Depreciation and
amortization |
|
|
|
(18,809 |
) |
|
|
|
|
(19,045 |
) |
|
|
|
|
(37,614 |
) |
|
|
|
(37,144 |
) |
|
| Impairment loss |
|
|
|
(17,193 |
) |
|
|
|
— |
|
|
|
|
(17,193 |
) |
|
|
— |
|
| Interest expense and
finance cost, net |
|
|
|
(8,369 |
) |
|
|
|
|
(7,601 |
) |
|
|
|
|
(16,033 |
) |
|
|
|
(16,102 |
) |
|
| Interest income |
|
|
|
92 |
|
|
|
|
|
46 |
|
|
|
|
|
164 |
|
|
|
|
99 |
|
|
| Other income/ (expense),
net |
|
|
|
3,413 |
|
|
|
|
|
(194 |
) |
|
|
|
|
4,899 |
|
|
|
|
(270 |
) |
|
| Net (loss)/
income |
|
$ |
|
(16,807 |
) |
|
|
$ |
|
11,355 |
|
|
|
$ |
|
(16,598 |
) |
|
$ |
|
22,234 |
|
|
Earnings per unit:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three MonthPeriod
EndedJune 30, 2016(unaudited) |
|
|
Three MonthPeriod EndedJune 30, 2015(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2016(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2015(unaudited) |
|
| Earnings per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common unit (basic and diluted)
|
|
$ |
|
(0.20 |
) |
|
|
$ |
0.13 |
|
|
$ |
|
(0.20 |
) |
|
|
$ |
0.25 |
|
NAVIOS MARITIME PARTNERS
L.P.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Expressed in thousands of U.S. Dollars)
| |
|
|
|
|
|
|
|
| |
|
Six MonthPeriod
EndedJune 30,2016(unaudited) |
|
|
Six MonthPeriod
EndedJune 30,2015(unaudited) |
| OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
| Net (loss)/ income |
|
$ |
|
(16,598 |
) |
|
|
$ |
|
22,234 |
|
| Adjustments to
reconcile net (loss)/ income to net cash provided
by operating activities: |
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
|
37,614 |
|
|
|
|
|
37,144 |
|
| Impairment loss |
|
|
|
17,193 |
|
|
|
|
— |
| Amortization and write-off
of deferred financing cost and discount |
|
|
|
2,085 |
|
|
|
|
|
2, 149 |
|
| Amortization of deferred
dry dock and special survey costs |
|
|
|
2,990 |
|
|
|
|
|
1,294 |
|
| Equity in earnings of
affiliates, net of dividends received |
|
|
|
(25 |
) |
|
|
|
|
(472 |
) |
| Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
| Net increase in restricted
cash |
|
|
|
170 |
|
|
|
|
— |
| (Increase)/ decrease in
accounts receivable |
|
|
|
(645 |
) |
|
|
|
|
227 |
|
| (Increase)/decrease in
prepaid expenses and other current assets |
|
|
|
(380 |
) |
|
|
|
|
484 |
|
| Decrease in other
long-term assets |
|
|
|
5 |
|
|
|
|
|
7 |
|
| Increase in accounts
payable |
|
|
|
76 |
|
|
|
|
|
513 |
|
| Increase/(decrease) in
accrued expenses |
|
|
|
(444 |
) |
|
|
|
|
617 |
|
| Increase in deferred
revenue |
|
|
|
(564 |
) |
|
|
|
|
(164 |
) |
| Increase/ (decrease) in
amounts due to related parties |
|
|
|
(728 |
) |
|
|
|
|
13,763 |
|
| Payments for dry dock and
special survey costs |
|
|
|
(2,013 |
) |
|
|
|
|
(8,830 |
) |
| Net cash provided
by operating activities |
|
|
|
38,736 |
|
|
|
|
|
68,966 |
|
| INVESTING
ACTIVITIES: |
|
| Deposits for acquisition
of vessels, net of transfers to vessel acquisitions |
|
|
— |
|
|
|
|
(147,830 |
) |
| Loans receivable from
affiliates |
|
|
|
(450 |
) |
|
|
|
|
(346 |
) |
| Net cash used in
investing activities |
|
|
|
(450 |
) |
|
|
|
|
(148,176 |
) |
| FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
| Cash distributions
paid |
|
|
— |
|
|
|
|
(76,193 |
) |
| Net proceeds from issuance
of general partner units |
|
|
— |
|
|
|
|
1,528 |
|
| Proceeds from issuance of
common units, net of offering costs |
|
|
— |
|
|
|
|
72,090 |
|
| Proceeds from long term
debt |
|
|
|
29,000 |
|
|
|
|
|
79,819 |
|
| (Increase)/ decrease in
restricted cash |
|
|
|
6,047 |
|
|
|
|
|
(21,247 |
) |
| Repayment of long-term
debt and payment of principal |
|
|
|
(73,615 |
) |
|
|
|
|
(48,695 |
) |
| Deferred financing
costs |
|
|
|
(1,141 |
) |
|
|
|
— |
| Debt issuance costs |
|
|
— |
|
|
|
|
(746 |
) |
| Net cash used in
financing activities |
|
|
|
(39,709 |
) |
|
|
|
|
6,556 |
|
| Decrease in cash
and cash equivalents |
|
|
|
(1,423 |
) |
|
|
|
|
(72,654 |
) |
| Cash and cash
equivalents, beginning of period |
|
|
|
26,750 |
|
|
|
|
|
99,495 |
|
| Cash and cash
equivalents, end of period |
|
$ |
|
25,327 |
|
|
|
$ |
|
26,841 |
|
| |
|
|
|
|
|
|
|
| Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
| Cash interest paid |
|
$ |
13,406 |
|
|
$ |
12,917 |
EXHIBIT 2
|
Owned Vessels |
|
Type |
|
Built |
|
Capacity(DWT) |
|
| Navios Apollon |
|
Ultra-Handymax |
|
2000 |
|
|
52,073 |
|
| Navios Soleil |
|
Ultra-Handymax |
|
2009 |
|
|
57,337 |
|
| Navios La Paix |
|
Ultra-Handymax |
|
2014 |
|
|
61,485 |
|
| Navios Gemini S |
|
Panamax |
|
1994 |
|
|
68,636 |
|
| Navios Libra II |
|
Panamax |
|
1995 |
|
|
70,136 |
|
| Navios Felicity |
|
Panamax |
|
1997 |
|
|
73,867 |
|
| Navios Galaxy I |
|
Panamax |
|
2001 |
|
|
74,195 |
|
| Navios Hyperion |
|
Panamax |
|
2004 |
|
|
75,707 |
|
| Navios Alegria |
|
Panamax |
|
2004 |
|
|
76,466 |
|
| Navios Orbiter |
|
Panamax |
|
2004 |
|
|
76,602 |
|
| Navios Helios |
|
Panamax |
|
2005 |
|
|
77,075 |
|
| Navios Hope |
|
Panamax |
|
2005 |
|
|
75,397 |
|
| Navios Sun |
|
Panamax |
|
2005 |
|
|
76,619 |
|
| Navios Sagittarius |
|
Panamax |
|
2006 |
|
|
75,756 |
|
| Navios Harmony |
|
Panamax |
|
2006 |
|
|
82,790 |
|
| Navios Fantastiks |
|
Capesize |
|
2005 |
|
|
180,265 |
|
| Navios Aurora II |
|
Capesize |
|
2009 |
|
|
169,031 |
|
| Navios Pollux |
|
Capesize |
|
2009 |
|
|
180,727 |
|
| Navios Fulvia |
|
Capesize |
|
2010 |
|
|
179,263 |
|
| Navios Melodia |
|
Capesize |
|
2010 |
|
|
179,132 |
|
| Navios Luz |
|
Capesize |
|
2010 |
|
|
179,144 |
|
| Navios Buena
Ventura |
|
Capesize |
|
2010 |
|
|
179,259 |
|
| Navios Joy |
|
Capesize |
|
2013 |
|
|
181,389 |
|
|
Container Vessels |
|
Type |
|
Built |
|
|
Capacity(TEU) |
|
| Hyundai Hongkong |
|
Container |
|
2006 |
|
|
6,800 |
|
| Hyundai Singapore |
|
Container |
|
2006 |
|
|
6,800 |
|
| Hyundai Tokyo |
|
Container |
|
2006 |
|
|
6,800 |
|
| Hyundai Shanghai
|
|
Container |
|
2006 |
|
|
6,800 |
|
| Hyundai Busan |
|
Container |
|
2006 |
|
|
6,800 |
|
| YM Utmost |
|
Container |
|
2006 |
|
|
8,204 |
|
| YM Unity |
|
Container |
|
2006 |
|
|
8,204 |
|
| MSC Cristina |
|
Container |
|
2011 |
|
|
13,100 |
|
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net income before interest and
finance costs, before depreciation and amortization and income
taxes. We use EBITDA and Adjusted EBITDA as a liquidity measure and
reconcile EBITDA and Adjusted EBITDA to net cash provided by/(used
in) operating activities, the most comparable U.S. GAAP liquidity
measure. Adjusted 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
Partners believes that EBITDA and Adjusted EBITDA are each the
basis upon which liquidity can be assessed and presents useful
information to investors regarding Navios Partners’ ability to
service and/or incur indebtedness, pay capital expenditures, meet
working capital requirements and make cash distributions. Navios
Partners also believes that EBITDA and Adjusted EBITDA are 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.
Adjusted EBITDA represents EBITDA excluding
certain items, as described under “Earnings Highlights”.
EBITDA and Adjusted EBITDA have limitations as
an analytical tool, and should not be considered in isolation or as
a substitute for the analysis of Navios Partners’ results as
reported under U.S. GAAP. Some of these limitations are: (i) EBITDA
and Adjusted EBITDA do 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 and
Adjusted EBITDA do not reflect any cash requirements for such
capital expenditures. Because of these limitations, EBITDA and
Adjusted EBITDA should not be considered as a principal indicator
of Navios Partners’ performance. Furthermore, our calculation of
EBITDA and Adjusted 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
Partners’ 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 Partners’ business
(including reserve for maintenance and replacement capital
expenditures);
- comply with applicable law, any of Navios Partners’ 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 MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
Three MonthPeriod EndedJune 30, 2015($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2015($
‘000)(unaudited) |
|
| |
Net cash
provided by operating activities |
|
$ |
|
15,206 |
|
|
$ |
41,630 |
|
|
$ |
|
38,736 |
|
|
$ |
|
68,966 |
|
|
| |
Net increase
in operating assets |
|
|
|
816 |
|
|
|
4,081 |
|
|
|
|
2,863 |
|
|
|
|
8,112 |
|
|
| |
Net
increase/(decrease) in operating liabilities |
|
|
|
5,959 |
|
|
|
(14,247 |
) |
|
|
|
1,660 |
|
|
|
|
(14,729 |
) |
|
| |
Net interest
cost |
|
|
|
8,276 |
|
|
|
7,555 |
|
|
|
|
15,869 |
|
|
|
|
16,003 |
|
|
| |
Amortization
and write-off of deferred financing cost |
|
|
|
(1,249 |
) |
|
|
(779 |
) |
|
|
|
(2,085 |
) |
|
|
|
(2,149 |
) |
|
| |
Impairment
loss |
|
|
|
(17,193 |
) |
|
|
— |
|
|
|
|
(17,193 |
) |
|
|
— |
|
| |
Equity in
earnings of affiliates, net of dividends received |
|
|
|
(11 |
) |
|
|
472 |
|
|
|
|
25 |
|
|
|
|
472 |
|
|
| |
EBITDA(1) |
|
$ |
|
11,804 |
|
|
$ |
38,712 |
|
|
$ |
|
39,875 |
|
|
$ |
|
76,675 |
|
|
| |
Impairment
loss |
|
|
|
17,193 |
|
|
|
— |
|
|
|
|
17,193 |
|
|
|
— |
|
| |
Adjusted EBITDA |
|
$ |
|
28,997 |
|
|
$ |
38,712 |
|
|
$ |
|
57,068 |
|
|
$ |
|
76,675 |
|
|
| |
Cash interest
income |
|
|
|
1 |
|
|
|
15 |
|
|
|
|
5 |
|
|
|
|
42 |
|
|
| |
Cash interest
paid |
|
|
|
(6,589 |
) |
|
|
(5,958 |
) |
|
|
|
(13,406 |
) |
|
|
|
(12,917 |
) |
|
| |
Maintenance
and replacement capital expenditures |
|
|
|
(2,975 |
) |
|
|
(3,449 |
) |
|
|
|
(5,949 |
) |
|
|
|
(6,674 |
) |
|
| |
Operating Surplus |
|
$ |
|
19,434 |
|
|
$ |
29,320 |
|
|
$ |
|
37,718 |
|
|
$ |
|
57,126 |
|
|
| |
Cash
distribution paid relating to the first quarter |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
|
(38,097 |
) |
|
| |
Cash
reserves |
|
|
|
(19,434 |
) |
|
|
8,777 |
|
|
|
|
(37,718 |
) |
|
|
|
19,068 |
|
|
| |
Available cash for distribution |
|
$ |
— |
|
$ |
38,097 |
|
|
$ |
— |
|
|
$ |
|
38,097 |
|
|
| (1 |
)
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
Three MonthPeriod EndedJune 30, 2015($
‘000)(unaudited) |
|
Six
MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
Six
MonthPeriod EndedJune 30, 2015($
‘000)(unaudited) |
|
| Net cash
provided by operating activities
|
|
$ |
|
15,206 |
|
|
$ |
41,630 |
|
$ |
|
38,736 |
|
|
$ |
68,966 |
|
| Net cash used in investing
activities |
|
$ |
— |
|
$ |
(133,374 |
) |
$ |
|
(450 |
) |
|
$ |
(148,176 |
) |
| Net cash used in financing
activities |
|
$ |
|
(23,255 |
) |
|
$ |
18,662 |
|
$ |
|
(39,709 |
) |
|
$ |
6,556 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@capitallink.com
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