Navios Maritime Midstream Partners L.P. (“Navios Midstream”)
(NYSE:NAP), an owner and operator of tanker vessels, reported its
financial results today for the third quarter and the nine month
period ended September 30, 2016.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Midstream stated: “We are pleased with our
third quarter results, for which we recorded $15.7 million of
EBITDA and $5.5 million of net income. We recently announced a
distribution of $0.4225 per unit, representing an annual
distribution of $1.69 and a current yield of approximately 15% per
unit. Our unit coverage ratio was 1.06x for the quarter.”
Angeliki Frangou continued, “Navios Midstream
extended the fixed fee under the management agreement until
December 2018 with no increase. Operating expenses for commercial
and technical management of the vessels thus remain at $9,500 per
day, about 8% below the industry average. Navios Midstream
also extended, for a two-year period, purchase options for three of
the five vessels, all of which were scheduled to expire in November
of 2016. The commercial terms of the options will remain the
same and Navios Maritime Acquisition Corporation will not be
providing any charter rate backstop. We anticipate that these
options will provide a continued avenue for fleet and distribution
growth.”
RECENT DEVELOPMENTS
Extension of fixed fee period under the Management
Agreement
In October 2016, Navios Midstream amended
its existing management agreement (the “Management Agreement”) with
Navios Tankers Management Inc., a wholly-owned subsidiary of Navios
Maritime Holdings Inc., to extend the fixed fee period for
commercial and technical management services of its fleet,
until December 31, 2018 at the current rate of
$9,500 per day per VLCC, following the expiration of the current
fixed fee period. Dry docking expenses are reimbursed at cost for
all vessels.
Purchase option extended for three VLCCs
Navios Midstream holds options to acquire up to
five VLCCs from Navios Maritime Acquisition Corporation (“Navios
Acquisition”) expiring on November 18, 2016. In October 2016,
Navios Acquisition extended the options of the Nave Buena Suerte,
the Nave Neutrino and the Nave Electron for an additional two-year
period expiring on November 18, 2018. The purchase price will be
equal to the fair market value of each of the three vessels at the
time of the options’ exercise. The extended purchase options do not
include any backstop commitments from Navios Acquisition.
Cash Distribution
The Board of Directors of Navios Midstream
declared a cash distribution for the third quarter of 2016 of
$0.4225 per unit. The cash distribution is payable on
November 10, 2016 to unitholders of record as of
November 8, 2016.
Long – Term Cash Flow and Profit Sharing
Navios Midstream has entered into long-term
charter-out agreements for its vessels, with a remaining average
term of 4.6 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 each of 2016 and 2017
and 99.4% for 2018, including the backstop commitment provided by
Navios Acquisition, expecting to generate revenues of approximately
$94.5 million, $86.6 million and $86.2 million for 2016, 2017 and
2018, respectively. The average expected daily charter-out rate for
the fleet is $43,036, $39,559 and $39,587 for 2016, 2017 and 2018,
respectively.
During the three month period and the nine month
period ended September 30, 2016, Navios Midstream recognized $0.6
million and $4.9 million, respectively, under its profit sharing
arrangements.
Continuous Offering Program
On July 29, 2016, Navios Midstream entered into
a Continuous Offering Program Sales Agreement (the “Sales
Agreement”) with S. Goldman Capital LLC, as sales agent (the
“Agent”), pursuant to which Navios Midstream may issue and sell
from time to time through the Agent common units representing
limited partner interests having an aggregate offering price of up
to $25.0 million. As of September 30, 2016, Navios Midstream
issued 277,103 common units and received net proceeds of $3.4
million after deducting fees and expenses of $0.2 million. In
connection with the issuance of the common units, Navios Midstream
issued 5,655 general partnership units to its general partner in
order to maintain its 2.0% general partner interest. The net
proceeds from the issuance of the general partnership units were
$0.1 million.
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
nine months ended September 30, 2016 and 2015. The quarterly and
nine 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 MonthPeriod endedSeptember 30, 2016(unaudited) |
|
|
Three MonthPeriod endedSeptember 30, 2015(unaudited) |
|
|
Nine MonthPeriod endedSeptember 30, 2016(unaudited) |
|
|
Nine MonthPeriod endedSeptember 30, 2015(unaudited) |
|
Revenue |
|
$ |
22,209 |
|
|
$ |
22,473 |
|
|
$ |
69,053 |
|
|
$ |
57,526 |
|
Net income |
|
|
5,457 |
|
|
|
6,232 |
|
|
|
18,841 |
|
|
|
17,938 |
|
EBITDA |
|
|
15,683 |
|
|
|
16,209 |
|
|
|
49,805 |
|
|
|
42,809 |
|
Earnings per common unit
(basic and diluted) |
|
|
0.26 |
|
|
|
0.30 |
|
|
|
0.91 |
|
|
|
0.89 |
|
Operating Surplus |
|
|
9,331 |
|
|
|
9,737 |
|
|
|
30,602 |
|
|
|
29,460 |
|
Maintenance and
replacement capital expenditure reserve |
|
|
(3,581 |
) |
|
|
(3,591 |
) |
|
|
(10,741 |
) |
|
|
(8,093 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three month periods ended September 30, 2016
and 2015
Revenue for the three month period ended
September 30, 2016 decreased by $0.3 million to $22.2
million, as compared to $22.5 million for the same period in
2015. Time Charter Equivalent (“TCE”) was $40,835 for the three
month period ended September 30, 2016 and $45,432 for the
three month period ended September 30, 2015. The decrease in
TCE was mainly due to the decrease by $1.5 million of profit
sharing recognized in relation to certain charters for the three
month period ended September 30, 2016, as compared to the same
period of 2015.
EBITDA decreased by approximately
$0.5 million to $15.7 million for the three month period
ended September 30, 2016, as compared to $16.2 million
for the same period in 2015. The decrease in EBITDA was due to a:
(a) $0.3 million decrease in revenue; (b) $0.2 million
increase in time charter expenses; and (c) $0.1 million
increase in general and administrative expenses.
The reserve for estimated maintenance and
replacement for capital expenditures for each of the three month
periods ended September 30, 2016 and 2015 was $3.6 million
(please see Reconciliation of Non-GAAP Financial Measures in
Exhibit 3).
Navios Midstream generated an Operating Surplus
for the three month period ended September 30, 2016 of $9.3
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 three month period ended
September 30, 2016 was $5.5 million compared to
$6.2 million for the three month period ended
September 30, 2015. The decrease in net income of
approximately $0.8 million was due to a: (a) $0.5 million decrease
in EBITDA; and (b) $0.4 million increase in direct vessel expenses;
partially mitigated by a $0.1 million increase in interest
income.
Earnings per common unit for the three month
period ended September 30, 2016 were $0.26.
Nine month periods ended September 30, 2016
and 2015
Revenue for the nine month period ended
September 30, 2016 increased by $11.5 million to $69.1
million, as compared to $57.5 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 $0.4 million in
profit sharing recognized in relation to certain charters for the
nine month period ended September 30, 2016, as compared to the
same period of 2015. Time Charter Equivalent (“TCE”) was $43,295
for the nine month period ended September 30, 2016 and $45,917
for the nine month period ended September 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
$7.0 million to $49.8 million for the nine month period
ended September 30, 2016, as compared to $42.8 million
for the same period in 2015. The increase in EBITDA was mainly due
to an $11.5 million increase in revenue. The above increase
was partially mitigated by a: (a) $3.2 million increase in
management fees; (b) $0.6 million increase in general and
administrative expenses; (c) $0.5 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 nine month
periods ended September 30, 2016 and 2015 was $10.7 million
and $8.1 million, respectively (please see Reconciliation of
Non-GAAP Financial Measures in Exhibit 3).
Navios Midstream generated an Operating Surplus
for the nine month period ended September 30, 2016 of $30.6
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 nine month period ended
September 30, 2016 was $18.8 million compared to
$17.9 million for the nine month period ended
September 30, 2015. The increase of approximately $0.9 million
in net income was due to a: (a) $7.0 million increase in EBITDA;
and (b) $0.2 million increase in interest income; partially
mitigated by a: (i) $2.8 million increase in depreciation and
amortization; (ii) $2.0 million increase in interest expenses and
finance cost; and (iii) $1.4 million increase in direct vessel
expenses.
Earnings per common unit for the nine month period ended
September 30, 2016 were $0.91.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Midstream’s core fleet performance for the
three and nine month periods ended September 30, 2016 and 2015.
|
|
Three Month Period ended
September 30, 2016
(unaudited) |
|
Three Month Period ended
September 30, 2015
(unaudited) |
|
|
Nine
Month Period ended
September 30, 2016
(unaudited) |
|
|
Nine
Month Period ended
September 30, 2015
(unaudited) |
|
FLEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days(1) |
|
|
534 |
|
|
489 |
|
|
|
1,568 |
|
|
|
1,239 |
|
Operating days(2) |
|
|
531 |
|
|
488 |
|
|
|
1,562 |
|
|
|
1,238 |
|
Fleet utilization(3) |
|
|
99.6 |
% |
|
99.8 |
% |
|
|
99.6 |
% |
|
|
99.9 |
% |
Vessels operating at
period end |
|
|
6 |
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time Charter Equivalent
per day(4) |
|
$ |
40,835 |
|
$ |
45,432 |
|
|
$ |
43,295 |
|
|
$ |
45,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
Conference Call details:
Navios Midstream's management will host a
conference call today, Wednesday, October 26, 2016 to discuss the
results for the third quarter and nine months ended September 30,
2016.
Conference Call details:
Call Date/Time: Wednesday, October 26, 2016 at 8:30 am ETCall
Title: Navios Midstream Q3 2016 Financial Results Conference Call
US Dial In: +1.866.703.4207 International Dial In: +1.636.692.6440
Conference ID: 8999 8164
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: 8999 8164 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.
EXHIBIT 1
NAVIOS MARITIME
MIDSTREAM PARTNERS L.P. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Expressed in thousands
of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
September 30,2016 |
|
December 31,2015 |
|
ASSETS |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
49,228 |
|
$ |
37,834 |
|
Accounts receivable,
net |
|
|
1,852 |
|
|
5,110 |
|
Prepaid expenses and other
current assets |
|
|
126 |
|
|
112 |
|
Due from related
parties |
|
|
5,206 |
|
|
2,804 |
|
Total current
assets |
|
|
56,412 |
|
|
45,860 |
|
Vessels, net |
|
|
384,000 |
|
|
400,192 |
|
Intangible assets |
|
|
25,986 |
|
|
28,450 |
|
Deferred dry dock and
special survey costs, net |
|
|
11,866 |
|
|
6,066 |
|
Total non-current
assets |
|
|
421,852 |
|
|
434,708 |
|
Total
assets |
|
$ |
478,264 |
|
$ |
480,568 |
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,091 |
|
$ |
412 |
|
Accrued expenses |
|
|
519 |
|
|
654 |
|
Due to related
parties |
|
|
456 |
|
|
438 |
|
Deferred revenue |
|
|
2,494 |
|
|
1,931 |
|
Current portion of
long-term debt, net of deferred finance costs and discount |
|
|
658 |
|
|
643 |
|
Total current
liabilities |
|
|
6,218 |
|
|
4,078 |
|
Long-term debt, net of
deferred finance costs and discount |
|
|
196,678 |
|
|
197,176 |
|
Total non-current
liabilities |
|
|
196,678 |
|
|
197,176 |
|
Total
liabilities |
|
$ |
202,896 |
|
$ |
201,254 |
|
Commitments and
contingencies |
|
|
— |
|
|
— |
|
Total Partners’
capital |
|
|
|
|
|
|
|
Common Unitholders
(9,619,795 units and 9,342,692 units issued and outstanding at
September 30, 2016 and December 31, 2015,
respectively) |
|
|
126,363 |
|
|
126,317 |
|
Subordinated Series A
Unitholders (1,592,920 units issued and outstanding at
September 30, 2016 and December 31, 2015) |
|
|
26,808 |
|
|
27,379 |
|
Subordinated Unitholders
(9,342,692 units issued and outstanding at September 30, 2016
and December 31, 2015) |
|
|
116,811 |
|
|
120,154 |
|
General Partner (419,498
units and 413,843 units issued and outstanding at
September 30, 2016 and December 31, 2015,
respectively) |
|
|
5,386 |
|
|
5,464 |
|
Partners’
capital |
|
|
275,368 |
|
|
279,314 |
|
Total liabilities
and Partners’ capital |
|
$ |
478,264 |
|
$ |
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
September 30, 2016
(unaudited) |
|
|
Three Month Period ended
September 30, 2015
(unaudited) |
|
|
Nine
Month Period ended
September 30, 2016
(unaudited) |
|
|
Nine
Month Period ended
September 30, 2015
(unaudited) |
|
Revenue |
|
$ |
22,209 |
|
|
$ |
22,473 |
|
|
$ |
69,053 |
|
|
$ |
57,526 |
|
Time charter expenses |
|
|
(412 |
) |
|
|
(247 |
) |
|
|
(1,161 |
) |
|
|
(624 |
) |
Direct vessel
expenses |
|
|
(724 |
) |
|
|
(373 |
) |
|
|
(2,312 |
) |
|
|
(951 |
) |
Management fees (entirely
through related party transactions) |
|
|
(5,244 |
) |
|
|
(5,244 |
) |
|
|
(15,618 |
) |
|
|
(12,369 |
) |
General and administrative
expenses |
|
|
(866 |
) |
|
|
(773 |
) |
|
|
(2,416 |
) |
|
|
(1,790 |
) |
Depreciation and
amortization |
|
|
(6,377 |
) |
|
|
(6,366 |
) |
|
|
(19,156 |
) |
|
|
(16,319 |
) |
Interest expenses and
finance cost |
|
|
(3,207 |
) |
|
|
(3,238 |
) |
|
|
(9,647 |
) |
|
|
(7,601 |
) |
Interest income |
|
|
82 |
|
|
|
— |
|
|
|
151 |
|
|
|
— |
|
Other (expense)/ income,
net |
|
|
(4 |
) |
|
|
— |
|
|
|
(53 |
) |
|
|
66 |
|
Net
income |
|
$ |
5,457 |
|
|
$ |
6,232 |
|
|
$ |
18,841 |
|
|
$ |
17,938 |
|
Earnings
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit holders |
|
$ |
2,480 |
|
|
$ |
2,814 |
|
|
$ |
8,523 |
|
|
$ |
8,342 |
|
Subordinated unit holders
Series A |
|
$ |
418 |
|
|
$ |
480 |
|
|
$ |
1,448 |
|
|
$ |
895 |
|
Subordinated unit
holders |
|
$ |
2,455 |
|
|
$ |
2,814 |
|
|
$ |
8,498 |
|
|
$ |
8,342 |
|
General Partner |
|
$ |
104 |
|
|
$ |
124 |
|
|
$ |
372 |
|
|
$ |
359 |
|
Earnings per unit
(basic and diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders: |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.91 |
|
|
$ |
0.89 |
|
Subordinated Series A
unitholders: |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.91 |
|
|
$ |
1.46 |
|
Subordinated
unitholders: |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.91 |
|
|
$ |
0.89 |
|
General Partner: |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.91 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME
MIDSTREAM PARTNERS L.P. |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Expressed in thousands
of U.S. Dollars) |
|
|
|
Nine
Month Period Ended
September 30, 2016
(unaudited) |
|
|
Nine
Month Period Ended
September 30, 2015
(unaudited) |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
18,841 |
|
|
$ |
17,938 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
19,156 |
|
|
|
16,319 |
|
Amortization of deferred
finance fees and bond premium |
|
|
1,056 |
|
|
|
2,321 |
|
Amortization of dry dock
and special survey costs |
|
|
2,312 |
|
|
|
951 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
(Increase)/ decrease in
prepaid expenses and other current assets |
|
|
(14 |
) |
|
|
168 |
|
Payment for
Drydocking |
|
|
(8,113 |
) |
|
|
(5,638 |
) |
Decrease/ (increase) in
accounts receivable |
|
|
3,258 |
|
|
|
(4,717 |
) |
Increase in accounts
payable |
|
|
1,679 |
|
|
|
484 |
|
Decrease in accrued
expenses |
|
|
(135 |
) |
|
|
(1,098 |
) |
(Increase) in due from/ to
related parties |
|
|
(2,384 |
) |
|
|
(2,611 |
) |
Increase/ (decrease) in
deferred revenue |
|
|
563 |
|
|
|
(7 |
) |
Net cash provided
by operating activities |
|
$ |
36,219 |
|
|
$ |
24,110 |
|
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 |
|
|
(1,538 |
) |
|
|
(126,513 |
) |
IPO expenses |
|
|
— |
|
|
|
(3,347 |
) |
Dividend paid |
|
|
(26,295 |
) |
|
|
(20,162 |
) |
Proceeds from issuance of
general partner units |
|
|
75 |
|
|
|
551 |
|
Proceeds from issuance of
common units |
|
|
3,433 |
|
|
|
— |
|
Net cash (used
in)/ provided by financing activities |
|
$ |
(24,325 |
) |
|
$ |
48,610 |
|
Net increase in
cash and cash equivalents |
|
|
11,394 |
|
|
|
468 |
|
Cash and cash
equivalents, beginning of year |
|
$ |
37,834 |
|
|
$ |
30,877 |
|
Cash and cash
equivalents, end of year |
|
$ |
49,228 |
|
|
$ |
31,345 |
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
|
Cash interest paid |
|
$ |
8,613 |
|
|
$ |
5,256 |
|
|
|
|
|
|
|
|
|
|
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) |
|
Expiration
date |
|
Nave
Galactic |
|
VLCC |
|
2009 |
|
|
297,168 |
|
November
18, 2016 |
|
Nave Quasar |
|
VLCC |
|
2010 |
|
|
297,376 |
|
November
18, 2016 |
|
Nave Buena Suerte |
|
VLCC |
|
2011 |
|
|
297,491 |
|
November
18, 2018 |
|
Nave Neutrino |
|
VLCC |
|
2003 |
|
|
298,287 |
|
November
18, 2018 |
|
Nave Electron |
|
VLCC |
|
2002 |
|
|
305,178 |
|
November
18, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Navios Midstream has options, to acquire
up to five VLCCs at fair market value from Navios Acquisition. In
October 2016, Navios Acquisition extended the options for three
vessels as presented in the table above, for an additional two-year
period until November 18, 2018. |
|
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
September 30, 2016 ($
‘000) (unaudited) |
|
|
Three Month Period ended
September 30, 2015 ($
‘000) (unaudited) |
|
|
Nine
Month Period ended
September 30, 2016 ($
‘000) (unaudited) |
|
|
Nine
Month Period ended
September 30, 2015 ($
‘000) (unaudited) |
|
Net cash provided by
operating activities |
|
$ |
16,825 |
|
|
$ |
6,393 |
|
|
$ |
36,219 |
|
|
$ |
24,110 |
|
Net (decrease)/ increase
in operating assets |
|
|
(2,061 |
) |
|
|
7,252 |
|
|
|
4,869 |
|
|
|
10,187 |
|
Net (increase)/
decrease in operating liabilities |
|
|
(1,851 |
) |
|
|
(317 |
) |
|
|
277 |
|
|
|
3,232 |
|
Net interest cost |
|
|
3,125 |
|
|
|
3,238 |
|
|
|
9,496 |
|
|
|
7,601 |
|
Amortization of deferred
finance cost and bond premium |
|
|
(355 |
) |
|
|
(357 |
) |
|
|
(1,056 |
) |
|
|
(2,321 |
) |
EBITDA |
|
$ |
15,683 |
|
|
$ |
16,209 |
|
|
$ |
49,805 |
|
|
$ |
42,809 |
|
Cash interest paid |
|
$ |
(2,853 |
) |
|
$ |
(2,881 |
) |
|
$ |
(8,613 |
) |
|
$ |
(5,256 |
) |
Cash interest income |
|
|
82 |
|
|
|
— |
|
|
|
151 |
|
|
|
— |
|
Maintenance and
replacement capital expenditures |
|
$ |
(3,581 |
) |
|
$ |
(3,591 |
) |
|
$ |
(10,741 |
) |
|
$ |
(8,093 |
) |
Operating
Surplus |
|
$ |
9,331 |
|
|
$ |
9,737 |
|
|
$ |
30,602 |
|
|
$ |
29,460 |
|
Cash distribution paid
relating to the first six months |
|
|
— |
|
|
|
— |
|
|
|
(17,485 |
) |
|
|
(16,401 |
) |
Cash reserves |
|
$ |
(469 |
) |
|
$ |
(995 |
) |
|
$ |
(4,255 |
) |
|
$ |
(4,317 |
) |
Available cash for
distribution |
|
$ |
8,862 |
|
|
$ |
8,742 |
|
|
$ |
8,862 |
|
|
$ |
8,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period ended
September 30, 2016 ($
‘000) (unaudited) |
|
|
Three Month Period ended
September 30, 2015 ($
‘000) (unaudited) |
|
|
Nine
Month Period ended
September 30, 2016 ($
‘000) (unaudited) |
|
|
Nine
Month Period ended
September 30, 2015 ($
‘000) (unaudited) |
|
Net cash provided by
operating activities |
|
$ |
16,825 |
|
|
$ |
6,393 |
|
|
$ |
36,219 |
|
|
$ |
24,110 |
|
Net cash used in investing
activities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(500 |
) |
|
$ |
(72,252 |
) |
Net cash (used in) /
provided by financing activities |
|
$ |
(5,816 |
) |
|
$ |
(9,473 |
) |
|
$ |
(24,325 |
) |
|
$ |
48,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contacts
Navios Maritime Midstream Partners L.P.
+1 (212) 906 8647
Investors@navios-midstream.com
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