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, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Midstream, stated, “We are pleased to report $18.5 million of
revenue and net income of $2.0 million for the second quarter of
2017. We also earned $12.4 million of EBITDA for the quarter
and announced a distribution of $0.4225 per unit. Our
quarterly dividend represents an annualized distribution of $1.69
per unit and a current yield of about 16%.”
RECENT DEVELOPMENTS
Cash Distribution
The Board of Directors of Navios Midstream declared a cash
distribution for the second quarter of 2017 of $0.4225 per unit.
The cash distribution is payable on August 11, 2017 to
unitholders of record as of August 8, 2017.
Long–Term Cash Flow
Navios Midstream has entered into long-term
charter-out agreements for its vessels, with a remaining average
term of 3.8 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 2017 and 2018
expecting to generate revenues, including the backstop commitment
provided by Navios Maritime Acquisition Corporation, of
approximately $83.3 million and $86.6 million for 2017 and 2018,
respectively. The average expected daily charter-out rate for the
fleet is $39,522 and $39,559 for 2017 and 2018, respectively.
Continuous Offering Program
Pursuant to the Continuous Offering Program in
place, Navios Midstream issued 336,011 common units during the six
month period ended June 30, 2017 and received net proceeds of
approximately $4.0 million. Pursuant to the issuance of the
common units, Navios Midstream issued 6,858 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 income for the three and six
months ended June 30, 2017 and 2016. The information for the
quarterly and six month periods ended June 30, 2017 and 2016 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.
See Exhibit 3 under the heading, “Disclosure of
Non-GAAP Financial Measures,” for a discussion of EBITDA and
Operating Surplus, and a reconciliation of such measures to the
most comparable measures calculated under U.S. GAAP.
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in $‘000
except per unit data) |
|
Three Month Period ended June 30, 2017 (unaudited) |
|
|
Three Month Period
ended June 30, 2016 (unaudited) |
|
|
Six Month Period ended June 30, 2017 (unaudited) |
|
|
Six Month Period ended June 30, 2016 (unaudited) |
|
Revenue |
|
$ |
18,510 |
|
|
$ |
22,695 |
|
|
$ |
39,610 |
|
|
$ |
46,844 |
|
Net income |
|
|
1,960 |
|
|
|
5,889 |
|
|
|
6,462 |
|
|
|
13,384 |
|
EBITDA |
|
|
12,412 |
|
|
|
16,434 |
|
|
|
27,112 |
|
|
|
34,122 |
|
Earnings per common
unit (basic and diluted) |
|
|
0.10 |
|
|
|
0.28 |
|
|
|
0.30 |
|
|
|
0.65 |
|
Operating Surplus |
|
|
7,048 |
|
|
|
10,000 |
|
|
|
16,517 |
|
|
|
21,271 |
|
Maintenance and
replacement capital expenditure reserve |
|
|
(2,461 |
) |
|
|
(3,580 |
) |
|
|
(4,922 |
) |
|
|
(7,160 |
) |
Three month periods ended June 30, 2017 and
2016
Revenue for the three month period ended
June 30, 2017 decreased by $4.2 million to
$18.5 million, as compared to $22.7 million for the same
period in 2016, mainly due to the lack of profit share as a result
of the prevailing market conditions and certain unscheduled
off-hires among which the prolonged drydock of one of our vessels.
Time Charter Equivalent (“TCE”) was $39,342 for the three month
period ended June 30, 2017 and $45,783 for the three month
period ended June 30, 2016.
EBITDA decreased by $4.0 million to
$12.4 million for the three month period ended June 30,
2017, as compared to $16.4 million for the same period in
2016. The decrease in EBITDA was due to a $4.2 million
decrease in revenue; partially mitigated by a: (i)
$0.1 million decrease in time charter expenses; and
(ii) $0.1 million decrease in general and administrative
expenses.
The reserve for estimated maintenance and
replacement capital expenditures for the three month periods ended
June 30, 2017 and 2016 was $2.5 million and $3.6 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, 2017 of $7.0 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, 2017 was $2.0 million compared to
$5.9 million for the three month period ended June 30,
2016. The decrease in net income of $3.9 million was due to the
$4.0 million decrease in EBITDA.
Earnings per common unit for the three month
period ended June 30, 2017 were $0.10.
Six month periods ended June 30, 2017 and
2016
Revenue for the six month period ended June 30, 2017
decreased by $7.2 million to $39.6 million, as compared to
$46.8 million for the same period in 2016, mainly due to the
lack of profit share as a result of the prevailing market
conditions and certain unscheduled off-hires among which the
prolonged drydock of one of our vessels. TCE was $38,914 for
the six month period ended June 30, 2017 and $44,565 for the
six month period ended June 30, 2016.
EBITDA decreased by approximately $7.0 million to
$27.1 million for the six month period ended June 30,
2017, as compared to $34.1 million for the same period in
2016. The decrease in EBITDA was due to a: (i) $7.2 million
decrease in revenue; and (ii) $0.2 million increase in other
expense. The above decrease was partially mitigated by a: (a) $0.2
million decrease in time charter expenses; (b) $0.2 million
decrease in general and administrative expenses; and (c) $0.1
million decrease in management fees.
The reserve for estimated maintenance and replacement capital
expenditures for the six month period ended June 30, 2017 and
2016 was $4.9 million and $7.2 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, 2017 of $16.5 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, 2017 was
$6.5 million compared to $13.4 million for the six month
period ended June 30, 2016. The decrease of approximately $6.9
million in net income was due to the $7.0 million decrease in
EBITDA.
Earnings per common unit for the six month period ended
June 30, 2017 was $0.30.
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, 2017 and 2016.
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Three MonthPeriod
endedJune 30, 2017(unaudited) |
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|
Three MonthPeriod
endedJune 30, 2016(unaudited) |
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Six
MonthPeriod endedJune 30, 2017(unaudited) |
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Six
MonthPeriod endedJune 30, 2016(unaudited) |
|
FLEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days(1) |
|
|
463 |
|
|
|
488 |
|
|
|
1,003 |
|
|
|
1,034 |
|
Operating days(2) |
|
|
448 |
|
|
|
485 |
|
|
|
985 |
|
|
|
1,030 |
|
Fleet
utilization(3) |
|
|
96.7 |
% |
|
|
99.4 |
% |
|
|
98.2 |
% |
|
|
99.6 |
% |
Vessels operating at
period end |
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
AVERAGE DAILY
RESULTS |
|
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|
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|
|
|
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|
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|
|
|
|
Time Charter Equivalent
per day(4) |
|
$ |
39,342 |
|
|
$ |
45,783 |
|
|
$ |
38,914 |
|
|
$ |
44,565 |
|
(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,
drydock 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, drydock or special surveys. |
|
|
|
(4 |
) |
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, July 26, 2017 to discuss the
results for the second quarter and six months ended June 30,
2017.
Conference Call details:
Call Date/Time: Wednesday, July 26, 2017 at 8:30 am ETCall
Title: Navios Midstream Q2 2017 Financial Results Conference Call
US Dial In: +1.866.703.4207 International Dial In: +1.636.692.6440
Conference ID: 3480 7508
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: 3480 7508
Slides and Audio Webcast:There
will also be a live webcast of the conference call, through 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 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 that 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 U.S.
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) |
|
|
|
June 30,2017(unaudited) |
|
|
December 31,2016 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
35,777 |
|
|
$ |
52,791 |
|
Restricted cash |
|
|
10,000 |
|
|
|
— |
|
Accounts receivable,
net |
|
|
2,117 |
|
|
|
2,264 |
|
Prepaid expenses and
other current assets |
|
|
3,321 |
|
|
|
1,168 |
|
Due from related
parties, short-term |
|
|
8,804 |
|
|
|
4,864 |
|
Total current
assets |
|
|
60,019 |
|
|
|
61,087 |
|
Vessels, net |
|
|
367,332 |
|
|
|
378,444 |
|
Intangible assets |
|
|
23,724 |
|
|
|
25,164 |
|
Deferred drydock and
special survey costs, net |
|
|
12,821 |
|
|
|
11,086 |
|
Due from related
parties, long-term |
|
|
2,565 |
|
|
|
— |
|
Total
non-current assets |
|
|
406,442 |
|
|
|
414,694 |
|
Total
assets |
|
$ |
466,461 |
|
|
$ |
475,781 |
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,086 |
|
|
$ |
2,386 |
|
Accrued expenses |
|
|
742 |
|
|
|
602 |
|
Deferred revenue |
|
|
1,168 |
|
|
|
2,494 |
|
Current portion of
long-term debt, net of deferred finance costs and discount |
|
|
668 |
|
|
|
661 |
|
Total current
liabilities |
|
|
4,664 |
|
|
|
6,143 |
|
Long-term debt, net of
current portion and net of deferred finance costs |
|
|
196,173 |
|
|
|
196,515 |
|
Total
non-current liabilities |
|
|
196,173 |
|
|
|
196,515 |
|
Total
liabilities |
|
$ |
200,837 |
|
|
$ |
202,658 |
|
Commitments and
contingencies |
|
|
— |
|
|
|
— |
|
Total Partners’
capital |
|
|
|
|
|
|
|
|
Common Unitholders
(10,011,806 units and 9,675,795 units issued and outstanding at
June 30, 2017 and December 31, 2016, respectively) |
|
|
124,214 |
|
|
|
125,635 |
|
Subordinated Series A
Unitholders (1,592,920 units issued and outstanding at
June 30, 2017 and at December 31, 2016,
respectively) |
|
|
25,729 |
|
|
|
26,593 |
|
Subordinated
Unitholders (9,342,692 units issued and outstanding at
June 30, 2017 and December 31, 2016, respectively) |
|
|
110,485 |
|
|
|
115,552 |
|
General Partner
(427,499 units and 420,641 units issued and outstanding at
June 30, 2017 and at December 31, 2016,
respectively) |
|
|
5,196 |
|
|
|
5,343 |
|
Partners’
capital |
|
|
265,624 |
|
|
|
273,123 |
|
Total
liabilities and Partners’ capital |
|
$ |
466,461 |
|
|
$ |
475,781 |
|
NAVIOS MARITIME MIDSTREAM PARTNERS
L.P. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
|
(Expressed in thousands of U.S. Dollars, except per
unit amounts) |
|
|
|
Three MonthPeriod
endedJune 30, 2017(unaudited) |
|
|
Three MonthPeriod
endedJune 30, 2016(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2017(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2016(unaudited) |
|
Revenue (includes
related party revenue of $4,075 and $5,231 for the three and six
months ended June 30, 2017, respectively, and $0 for the three
and six months ended June 30, 2016) |
|
$ |
18,510 |
|
|
$ |
22,695 |
|
|
$ |
39,610 |
|
|
$ |
46,844 |
|
Time charter
expenses |
|
|
(284 |
) |
|
|
(338 |
) |
|
|
(569 |
) |
|
|
(749 |
) |
Direct vessel
expenses |
|
|
(995 |
) |
|
|
(952 |
) |
|
|
(1,775 |
) |
|
|
(1,588 |
) |
Management fees
(entirely through related party transactions) |
|
|
(5,187 |
) |
|
|
(5,187 |
) |
|
|
(10,317 |
) |
|
|
(10,374 |
) |
General and
administrative expenses |
|
|
(630 |
) |
|
|
(724 |
) |
|
|
(1,354 |
) |
|
|
(1,550 |
) |
Depreciation and
amortization |
|
|
(6,259 |
) |
|
|
(6,378 |
) |
|
|
(12,552 |
) |
|
|
(12,779 |
) |
Interest income |
|
|
5 |
|
|
|
69 |
|
|
|
11 |
|
|
|
69 |
|
Interest expenses and
finance cost |
|
|
(3,203 |
) |
|
|
(3,284 |
) |
|
|
(6,334 |
) |
|
|
(6,440 |
) |
Other income/
(expense), net |
|
|
3 |
|
|
|
(12 |
) |
|
|
(258 |
) |
|
|
(49 |
) |
Net
income |
|
$ |
1,960 |
|
|
$ |
5,889 |
|
|
$ |
6,462 |
|
|
$ |
13,384 |
|
|
|
|
|
|
Earnings
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit
holders |
|
$ |
918 |
|
|
$ |
2,659 |
|
|
$ |
3,026 |
|
|
$ |
6,043 |
|
Subordinated Series A
unit holders |
|
$ |
146 |
|
|
$ |
453 |
|
|
$ |
482 |
|
|
$ |
1,030 |
|
Subordinated unit
holders |
|
$ |
856 |
|
|
$ |
2,659 |
|
|
$ |
2,827 |
|
|
$ |
6,043 |
|
General Partner |
|
$ |
40 |
|
|
$ |
118 |
|
|
$ |
127 |
|
|
$ |
268 |
|
Earnings per
unit (basic and diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders |
|
$ |
0.10 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.65 |
|
Subordinated Series A
unitholders |
|
$ |
0.10 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.65 |
|
Subordinated
unitholders |
|
$ |
0.10 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.65 |
|
General Partner |
|
$ |
0.10 |
|
|
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.65 |
|
NAVIOS MARITIME MIDSTREAM PARTNERS
L.P. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
(Expressed in thousands of U.S. Dollars) |
|
|
|
Six MonthPeriod
endedJune 30,2017(unaudited) |
|
|
Six MonthPeriod
endedJune 30,2016(unaudited) |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,462 |
|
|
$ |
13,384 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
12,552 |
|
|
|
12,779 |
|
Amortization of
deferred finance fees |
|
|
690 |
|
|
|
701 |
|
Amortization of drydock
and special survey costs |
|
|
1,775 |
|
|
|
1,588 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Increase in prepaid
expenses and other current assets |
|
|
(2,153 |
) |
|
|
(5 |
) |
Payments for
drydocking |
|
|
(3,510 |
) |
|
|
(5,131 |
) |
Decrease / (increase)
in accounts receivable |
|
|
147 |
|
|
|
(1,794 |
) |
Increase in due from
related parties, short-term |
|
|
(3,940 |
) |
|
|
(4,273 |
) |
(Decrease) / increase
in accounts payable |
|
|
(300 |
) |
|
|
1,677 |
|
Increase / (decrease)
in accrued expenses |
|
|
140 |
|
|
|
(95 |
) |
Increase in due from
related parties, long-term |
|
|
(2,565 |
) |
|
|
— |
|
(Decrease) / increase
in deferred revenue |
|
|
(1,326 |
) |
|
|
563 |
|
Net cash
provided by operating activities |
|
$ |
7,972 |
|
|
$ |
19,394 |
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Acquisition of
vessels |
|
|
— |
|
|
|
(500 |
) |
Net cash used
in investing activities |
|
$ |
— |
|
|
$ |
(500 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Loan repayment |
|
|
(1,025 |
) |
|
|
(1,025 |
) |
Dividend paid |
|
|
(18,049 |
) |
|
|
(17,484 |
) |
Proceeds from issuance
of general partner units |
|
|
84 |
|
|
|
— |
|
Proceeds from issuance
of common units |
|
|
4,004 |
|
|
|
— |
|
Increase in restricted
cash |
|
|
(10,000 |
) |
|
|
— |
|
Net cash used
in financing activities |
|
$ |
(24,986 |
) |
|
$ |
(18,509 |
) |
Net (decrease)
/ increase in cash and cash equivalents |
|
|
(17,014 |
) |
|
|
385 |
|
Cash and cash
equivalents, beginning of year |
|
$ |
52,791 |
|
|
$ |
37,834 |
|
Cash and cash
equivalents, end of year |
|
$ |
35,777 |
|
|
$ |
38,219 |
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
|
Cash interest paid |
|
$ |
5,692 |
|
|
$ |
5,760 |
|
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 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 three VLCCs at fair market value from
Navios Maritime Acquisition Corporation 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 U.S. GAAP 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 U.S GAAP or as a measure of
profitability or liquidity.
4. Reconciliation of Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod
endedJune 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod
endedJune 30, 2016($
‘000)(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2017($
‘000)(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2016($
‘000)(unaudited) |
|
Net cash provided by
operating activities |
|
$ |
6,825 |
|
|
$ |
9,464 |
|
|
$ |
7,972 |
|
|
$ |
19,394 |
|
Net increase in
operating assets |
|
|
1,788 |
|
|
|
6,586 |
|
|
|
12,021 |
|
|
|
6,930 |
|
Net (increase) /
decrease in operating liabilities |
|
|
947 |
|
|
|
(2,481 |
) |
|
|
1,486 |
|
|
|
2,128 |
|
Net interest cost |
|
|
3,198 |
|
|
|
3,215 |
|
|
|
6,323 |
|
|
|
6,371 |
|
Amortization of
deferred finance cost and bond premium |
|
|
(346 |
) |
|
|
(350 |
) |
|
|
(690 |
) |
|
|
(701 |
) |
EBITDA |
|
$ |
12,412 |
|
|
$ |
16,434 |
|
|
$ |
27,112 |
|
|
$ |
34,122 |
|
Cash interest paid |
|
$ |
(2,915 |
) |
|
$ |
(2,923 |
) |
|
$ |
(5,692 |
) |
|
$ |
(5,760 |
) |
Cash interest
income |
|
|
12 |
|
|
|
69 |
|
|
|
19 |
|
|
|
69 |
|
Maintenance and
replacement capital expenditures |
|
$ |
(2,461 |
) |
|
$ |
(3,580 |
) |
|
$ |
(4,922 |
) |
|
$ |
(7,160 |
) |
Operating
Surplus |
|
$ |
7,048 |
|
|
$ |
10,000 |
|
|
$ |
16,517 |
|
|
$ |
21,271 |
|
Cash distribution paid
relating to the first six months |
|
|
— |
|
|
|
— |
|
|
|
(9,022 |
) |
|
|
(8,742 |
) |
Cash reserves |
|
$ |
1,983 |
|
|
$ |
(1,189 |
) |
|
$ |
1,536 |
|
|
$ |
(3,718 |
) |
Available cash
for distribution |
|
$ |
9,031 |
|
|
$ |
8,811 |
|
|
$ |
9,031 |
|
|
$ |
8,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod
endedJune 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod
endedJune 30, 2016($
‘000)(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2017($
‘000)(unaudited) |
|
|
Six
MonthPeriod endedJune 30, 2016($
‘000)(unaudited) |
|
Net cash provided by
operating activities |
|
$ |
6,825 |
|
|
$ |
9,464 |
|
|
$ |
7,972 |
|
|
$ |
19,394 |
|
Net cash used in
investing activities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(500 |
) |
Net cash used in
financing activities |
|
$ |
(9,310 |
) |
|
$ |
(9,254 |
) |
|
$ |
(24,986 |
) |
|
$ |
(18,509 |
) |
Investor Relations Contact
Navios Maritime Midstream Partners L.P.
+1 (212) 906 8647
Investors@navios-midstream.com
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