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
third quarter and nine months ended September 30, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Partners stated, “I am pleased with our results for the third
quarter of 2017, for which Navios Partners reported revenue of
$60.0 million, EBITDA of $41.0 million and net income of $9.2
million.”
Angeliki Frangou continued, “Navios Partners is expected to
generate significant cash flow, as it has no material near term
debt maturities and low leverage. Consequently, we were able
to renew our drybulk fleet, acquiring seven vessels and selling one
vessel. This increased our fleet by 33%, on a deadweight ton
basis, and reduced the average age of our vessels by
9%.”
Navios Partners
Add-on to the Term Loan B
On August 10, 2017, Navios Partners completed the issuance of a
$53.0 million add-on to its existing Term Loan B facility. The
add-on to the Term Loan B bears an interest rate of LIBOR plus 500
basis points and has a three year term, with a 5.0% amortization
profile. Navios Partners used the net proceeds to partially finance
the acquisition of three vessels, which were contributed to the
collateral package.
Acquisition of Vessels
On September 20, 2017, Navios Partners acquired from an
unrelated third party the Navios Symphony, a 2010-built Capesize
vessel of approximately 178,132 dwt, for an acquisition cost of
approximately $28.0 million.
On August 21, 2017, Navios Partners acquired from an
unrelated third party the Navios Aster, a 2010 Hyundai-built
Capesize vessel of approximately 179,314 dwt, for an acquisition
cost of approximately $28.9 million.
On August 11, 2017, Navios Partners acquired from a related
third party the Navios Christine B, a 2009 Tsuneishi Zhoushan-built
Ultra-Handymax vessel of approximately 58,058 dwt, for an
acquisition cost of approximately $14.0 million.
Renewal of Management Agreement
Navios Partners agreed to extend the duration of its existing
Management Agreement with Navios Shipmanagement Inc. (the
"Manager"), a subsidiary of Navios Maritime Holdings Inc. ("Navios
Holdings"), until December 31, 2022 and to fix the rate for
shipmanagement services of its owned fleet through December 31,
2019. The new management fees, excluding drydocking expenses which
are reimbursed at cost by Navios Partners, will be: (a) $4,225
daily rate per Ultra-Handymax vessel; (b) $4,325 daily rate per
Panamax vessel; (c) $5,250 daily rate per Capesize vessel; (d)
$6,700 daily rate per Container vessel of TEU 6,800; and (e) $7,400
daily rate per Container vessel of more than TEU 8,000.
Navios Containers
Deconsolidation of Navios Maritime Containers Inc.
(“Navios Containers”)
On August 29, 2017, Navios Containers closed a private placement
of 10,000,000 shares at a subscription price of $5.00 per share,
resulting in gross proceeds of $50.0 million. Navios Partners
invested $10.0 million and received 2,000,000 shares. Navios
Partners and Navios Holdings also received warrants, with a
five-year term, for 6.8% and 1.7% of the newly issued equity,
respectively. Following this transaction, Navios Partners had 39.9%
of Navios Container’s equity. As a result, from August 29, 2017,
Navios Containers is considered an affiliate entity and the
investment in Navios Containers is accounted for under the equity
method due to the Company’s significant influence over Navios
Containers.
As of September 30, 2017, Navios Partners held 8,000,000 common
shares and received 39.9% of the equity, and Navios Holdings held
1,000,000 common shares and received 5.0% of the equity of Navios
Containers.
Private Placement
On November 9, 2017, Navios Containers closed a private
placement of 9,090,909 shares at a subscription price of $5.50 per
share, resulting in gross proceeds of approximately $50.0 million.
The net proceeds will be used partially to finance the acquisition
of four 2008-built baby Panamax containerships for an agreed price
of $96.8 million and for general working capital purposes. Navios
Partners invested $10.0 million and received 1,818,182 shares.
Navios Partners also received warrants, with a five-year term, for
6.8% of the newly issued equity. Following this transaction, Navios
Partners will own approximately 33.7% of Navios Container’s
equity.
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 approximately 2.0 years. Navios Partners
has currently contracted out 98.0% of its available days for 2017,
36.1% for 2018 and 16.2% for 2019, including index-linked charters,
respectively, expecting to generate revenues of approximately
$168.8 million, $89.3 million and $54.7 million, respectively. The
average expected daily charter-out rate for the fleet is $14,948,
$21,769 and $24,972 for 2017, 2018 and 2019, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of operations for the three and nine month
periods ended September 30, 2017 and 2016. The quarterly 2017 and
2016 information was derived from the unaudited condensed
consolidated financial statements for the respective periods.
EBITDA, Adjusted EBITDA, Adjusted 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 calculated in accordance with U.S.
GAAP.
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Three Month |
|
Three Month |
|
Nine Month |
|
Nine Month |
| |
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
|
September
30,2017 |
|
September
30,2016 |
|
September
30,2017 |
|
September
30,2016 |
| (in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| Revenue |
$ |
59,954 |
|
$ |
50,341 |
|
$ |
152,383 |
$ |
140,859 |
| Net income/
(loss) |
$ |
9,173 |
|
$ |
(33,863 |
) |
$ |
7,965 |
$ |
(50,460) |
| Adjusted Net
Income |
$ |
6,143(1) |
|
$ |
6,098(4)(6) |
$ |
11,423(2) |
$ |
6,693(5)(6) |
| Net cash provided by/
(used in) operating activities |
$ |
22,377 |
|
$ |
(4,111 |
) |
$ |
37,905 |
$ |
34,625 |
| EBITDA |
$ |
41,006 |
|
$ |
13,391 |
|
$ |
95,405 |
$ |
53,266 |
| Adjusted EBITDA |
$ |
37,859(1) |
|
$ |
32,826(4) |
$ |
95,947(3) |
$ |
89,894(5) |
| Earnings per Common
unit (basic and diluted) |
$ |
0.06 |
|
$ |
(0.40 |
) |
$ |
0.06 |
$ |
(0.60) |
| Adjusted Earnings per
Common unit (basic and diluted) |
$ |
0.04(1) |
|
$ |
0.07(4)(6) |
$ |
0.09(2) |
$ |
0.08(5)(6) |
| Operating Surplus |
$ |
27,193 |
|
$ |
23,190 |
|
$ |
67,110 |
$ |
60,908 |
| Maintenance and
Replacement Capital expenditure reserve |
$ |
4,061 |
|
$ |
2,975 |
|
$ |
10,801 |
$ |
8,924 |
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- Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per
Common unit for the three month period ended September 30,
2017 have been adjusted to exclude a $4.1 million gain on
change in control from Navios Containers’ deconsolidation, a $0.5
million equity compensation expense and a $0.4 million relating to
the reactivation costs of four laid-up vessels of Navios
Containers.
- Adjusted Net Income and Adjusted Earnings per Common unit for
the nine month period ended September 30, 2017 have been
adjusted to exclude, a $4.1 million gain on change in control from
Navios Containers’ deconsolidation, a $3.2 million write-off
of deferred finance fees and discount related to the refinancing of
the Term Loan B Facility, a $1.5 million allowance for
doubtful accounts, a $1.3 million loss related to the disposal of
one of our vessels, a $1.4 million equity compensation expense and
a $0.4 million relating to the reactivation costs of four laid-up
vessels of Navios Containers.
- Adjusted EBITDA for the nine month period ended September 30,
2017 has been adjusted to exclude a $4.1 million gain on
change in control from Navios Containers’ deconsolidation,
a $1.5 million allowance for doubtful accounts, a $1.3
million loss related to the disposal of one of our vessels, a $1.4
million equity compensation expense and a $0.4 million relating to
the reactivation costs of four laid-up vessels of Navios
Containers.
- Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per
Common unit for the three month period ended September 30, 2016
have been adjusted to exclude a $19.4 million loss on the disposal
of the HMM shares.
- Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per
Common unit for the nine month period ended September 30, 2016 have
been adjusted to exclude a $19.4 million loss on the disposal of
the HMM shares and a $17.2 million impairment loss on one of our
vessels.
- Adjusted Net Income and Adjusted Earnings per Common unit for
the three and nine month periods ended September 30, 2016 have been
adjusted to exclude the $20.5 million loss from the non-cash
accelerated amortization of the intangible assets relating to two
vessels.
Three month periods ended September
30, 2017 and 2016
Time charter and voyage revenues from Navios
Partners for the three month period ended September 30, 2017
increased by $0.4 million or 0.7% to $50.7 million, as
compared to $50.3 million for the same period in 2016. The
increase in time charter and voyage revenues was primarily due to:
(i) the increase in revenue following the acquisition of the seven
vessels in 2017; and (ii) the increase in available days of the
fleet to 3,178 days for the three month period ended
September 30, 2017, as compared to 2,812 days for the three
month period ended September 30, 2016, mainly due to the
increased fleet. Time Charter Equivalent rate per day (“TCE”)
decreased to $15,588 per day for the three month period ended
September 30, 2017, from $16,968 per day for the three month
period ended September 30, 2016, mainly due to the sale of the
MSC Cristina in January 2017.
Time charter and voyage revenues from Navios
Containers for the period from July 1, 2017 to August 29, 2017
amounted to $9.3 million. Available days of the fleet were 512 days
for the period from July 1, 2017 to August 29, 2017 and
TCE for the period amounted to $17,623. There were no operations in
the corresponding period in 2016.
EBITDA of Navios Partners for the three month
period ended September 30, 2017 was negatively affected by the
accounting effect of a $0.5 million equity compensation expense.
EBITDA for the three month period ended September 30, 2016 was
negatively affected by the accounting effect of a $19.4 million
loss on the disposal of the HMM shares. Excluding these items,
Adjusted EBITDA increased by $0.5 million to $33.3 million for the
three month period ended September 30, 2017, as compared to
$32.8 million for the same period in 2016. The increase in Adjusted
EBITDA was primarily due to a: (i) $0.4 million increase in
revenue; (ii) $2.4 million decrease in other expenses; (iii) $0.1
million increase in equity in net earnings of affiliated companies;
and (iv) $0.1 million increase in other income. The above increase
was partially mitigated by a: (i) $1.4 million increase in
management fees due to the increased fleet; (ii) $0.6 million
increase in time charter and voyage expenses; and (iii) $0.5
million increase in general and administrative expenses.
EBITDA of Navios Containers for the period from
July 1, 2017 to August 29, 2017 was negatively affected by the
accounting effect of a $0.4 million relating to the reactivation
costs of four laid-up vessels. Excluding this item, Adjusted EBITDA
was $4.4 million for the period from July 1, 2017 to August 29,
2017.
The reserve for estimated maintenance and
replacement capital expenditures for the three month periods ended
September 30, 2017 and 2016 was $4.1 million and $3.0 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated an operating surplus
for the three month period ended September 30, 2017 of
$27.2 million, as compared to $23.2 million for the three
month period ended September 30, 2016. 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 of Navios Partners for the three
month period ended September 30, 2017 was negatively affected
by the accounting effect of a $0.5 million equity compensation
expense. Net income for the three month period ended September 30,
2016 was negatively affected by the accounting effect of a: (i)
$19.4 million loss on the disposal of the HMM shares; and (ii)
$20.5 million loss from the non-cash accelerated amortization of
the intangible assets relating to two vessels. Excluding these
items, Adjusted Net Income for the three month period ended
September 30, 2017 amounted to $5.9 million as compared
to $6.1 million for the three month period ended
September 30, 2016. The decrease in Adjusted Net Income of
$0.2 million was due to a $1.7 million increase in interest expense
and finance cost, net. The above decrease was partially mitigated
by a: (i) $0.9 million increase in interest income; (ii) $0.5
million increase in adjusted EBITDA; and (iii) $0.1 million
decrease in depreciation and amortization expense.
Net income of Navios Containers for the period
from July 1, 2017 to August 29, 2017 was negatively affected by the
accounting effect of $0.4 million relating to the reactivation
costs of four laid-up vessels. Excluding this item, Adjusted Net
Income was $0.2 million for the period from July 1, 2017 to August
29, 2017. There were no operations in the corresponding period in
2016.
Nine month periods ended September 30,
2017 and 2016
Time charter and voyage revenues from Navios
Partners for the nine month period ended September 30, 2017
decreased by $0.8 million or 0.6% to $140.0 million, as
compared to $140.9 million for the same period in 2016. The
decrease in time charter and voyage revenues was primarily due to
the decrease in TCE to $15,591 per day for the nine month period
ended September 30, 2017, from $16,165 per day for the nine
month period ended September 30, 2016, mainly due to the sale
of the MSC Cristina in January 2017. As a result of the vessel
acquisitions, the available days of the fleet increased to
8,817 days for the nine month period ended September 30,
2017, as compared to 8,442 days for the nine month period
ended September 30, 2016.
Time charter and voyage revenues from Navios
Containers for the period from April 28, 2017 (date of inception)
to August 29, 2017 amounted to $12.4 million. Available days of the
fleet were 627 days for the period from April 28, 2017 (date of
inception) to August 29, 2017 and TCE for the period amounted to
$19,338. There were no operations in the corresponding period in
2016.
EBITDA of Navios Partners for the nine month
period ended September 30, 2017 was affected by the accounting
effect of a: (i) $4.1 million gain on change in control from Navios
Containers’ deconsolidation; (ii) $1.5 million allowance for
doubtful accounts; (iii) $1.3 million loss related to the disposal
of the MSC Cristina and; (iv) $1.4 million equity compensation
expense. EBITDA for the nine months ended September 30, 2016 was
negatively affected by the accounting effect of a: (i) $17.2
million impairment loss on the sale of the MSC Cristina; and (ii)
$19.4 million loss on the disposal of the HMM shares. Excluding
these items, Adjusted EBITDA decreased by $0.4 million to $89.5
million for the nine months ended September 30, 2017, as compared
to $89.9 million for the same period in 2016. The decrease in
Adjusted EBITDA was primarily due to a: (i) $0.8 million decrease
in revenue; (ii) $1.1 million increase in management fees due to
the increased fleet; and (iii) $2.4 million increase in general and
administrative expenses. The above decrease was partially mitigated
by a: (i) $2.0 million decrease in other expenses; (ii) $1.8
million decrease in time charter and voyage expenses; and (iii)
$0.1 million increase in equity in net earnings of affiliated
companies.
EBITDA of Navios Containers for the period from
April 28, 2017 (date of inception) to August 29, 2017 was
negatively affected by the accounting effect of $0.4 million
relating to the reactivation costs of four laid-up vessels.
Excluding this item, Adjusted EBITDA was $6.7 million for the
period from April 28, 2017 to August 29, 2017.
The reserve for estimated maintenance and
replacement capital expenditures for the nine month periods ended
September 30, 2017 and 2016 was $10.8 million and $8.9
million, respectively (please see Reconciliation of Non-GAAP
Financial Measures in Exhibit 3).
Navios Partners generated an operating surplus
for the nine month period ended September 30, 2017 of
$67.1 million, as compared to $60.9 million for the nine
month period ended September 30, 2016. 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 of Navios Partners for the nine
months ended September 30, 2017 was affected by the accounting
effect of a: (i) $4.1 million gain on change in control from Navios
Containers’ deconsolidation; (ii) $3.2 million write-off of
deferred finance fees and discount related to the refinancing of
the Term Loan B Facility; (iii) $1.5 million allowance for
doubtful accounts; (iv) $1.3 million loss related to the disposal
of the MSC Cristina; and (v) $1.4 million equity compensation
expense. Net income for the nine months ended September 30, 2016
was negatively affected by the accounting effect of a: (i) $17.2
million impairment loss on the sale of the MSC Cristina; (ii) $19.4
million loss on the disposal of the HMM shares; and (iii) $20.5
million loss from the non-cash accelerated amortization of the
intangible assets relating to two vessels. Excluding these items,
Adjusted Net Income for the nine months ended September 30,
2017 amounted to $10.6 million as compared to
$6.7 million for the nine months ended September 30,
2016. The increase in Adjusted Net Income of $3.9 million was due
to a: (i) $3.6 million decrease in depreciation and amortization
expense; and (ii) $2.2 million increase in interest income. The
above increase was partially mitigated by a: (i) $1.0 million
increase in interest expense and finance cost, net; (ii) $0.4
million decrease in Adjusted EBITDA; and (iii) $0.4 million
increase in direct vessel expenses, comprising of the amortization
of dry dock and special survey costs.
Net income of Navios Containers for the period
from April 28, 2017 (date of inception) to August 29, 2017 was
negatively affected by the accounting effect of $0.4 million
relating to the reactivation costs of four laid-up vessels.
Excluding this item, Adjusted Net Income was $1.0 million for the
period from April 28, 2017 to August 29, 2017. There were no
operations in the corresponding period in 2016.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance (excluding
Navios Containers) for the three and nine month periods ended
September 30, 2017 and 2016.
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Three MonthPeriod
EndedSeptember 30, 2017(unaudited) |
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Three MonthPeriod
EndedSeptember 30, 2016(unaudited) |
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Nine
MonthPeriod EndedSeptember 30, 2017(unaudited) |
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Nine
MonthPeriod EndedSeptember 30, 2016(unaudited) |
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| Available Days(1) |
|
|
3,178 |
|
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|
2,812 |
|
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|
8,817 |
|
|
|
8,442 |
|
| Operating Days(2) |
|
|
3,165 |
|
|
|
2,806 |
|
|
|
8,775 |
|
|
|
8,431 |
|
| Fleet
Utilization(3) |
|
|
99.6 |
% |
|
|
99.8 |
% |
|
|
99.5 |
% |
|
|
99.9 |
% |
| Time Charter Equivalent
(per day) |
|
$ |
15,588 |
|
|
$ |
16,968 |
|
|
$ |
15,591 |
|
|
$ |
16,165 |
|
| Vessels operating at
period end |
|
|
37 |
|
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|
31 |
|
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|
37 |
|
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|
31 |
|
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(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.
|
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(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. |
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(4 |
) |
TCE
rate: Time Charter Equivalent rate per day is 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 per
day is a standard shipping industry performance measure used
primarily to present the actual daily earnings generated by vessels
on various types of charter contracts for the number of available
days of the fleet. |
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Conference Call Details:
Navios Partners' management will host a
conference call today, Tuesday, November 14, 2017 to discuss the
results for the third quarter and nine months ended September 30,
2017.
Call Date/Time: Tuesday, November 14, 2017 at 8:30 am ET Call
Title: Navios Partners Q3 2017 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 9216 2319
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: 9216 2319
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 bulk vessels. For more information, please visit our website at
www.navios-mlp.com.
About Navios Maritime Containers Inc.
Navios Maritime Containers Inc. (N-OTC:NMCI) is
a growth vehicle dedicated to the container sector of the maritime
industry. For more information, please visit its website
at www.navios-containers.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’ 2017 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.
Contacts
Navios Maritime Partners L.P.+1 (212) 906
8645Investors@navios-mlp.com
Nicolas BornozisCapital Link, Inc.+1 (212) 661
7566naviospartners@capitallink.com
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| |
|
EXHIBIT 1 |
| NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE
SHEET DATA(Expressed in thousands of U.S. Dollars except
unit data) |
| |
|
|
|
|
September 30,
2017 (unaudited) |
|
December 31, 2016
(unaudited) |
|
ASSETS |
|
|
| Cash and cash
equivalents, including restricted cash |
$ |
31,361 |
|
$ |
25,088 |
| Other current
assets |
|
46,673 |
|
|
31,261 |
| Vessels, net |
|
1,150,131 |
|
|
1,037,206 |
| Vessel held for
sale |
|
— |
|
|
125,000 |
| Other non-current
assets |
|
101,779 |
|
|
31,073 |
| Intangible assets |
|
9,440 |
|
|
18,952 |
| Total
assets |
$ |
1,339,384 |
|
$ |
1,268,580 |
|
|
|
|
| LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
| Other current
liabilities |
$ |
29,255 |
|
$ |
24,919 |
| Current portion of
long-term debt, net |
|
27,040 |
|
|
74,031 |
| Long-term debt,
net |
|
473,540 |
|
|
449,745 |
| Other non-current
liabilities |
|
19,519 |
|
|
39,676 |
| Total partners’
capital |
|
790,030 |
|
|
680,209 |
| Total
liabilities and partners’ capital |
$ |
1,339,384 |
|
$ |
1,268,580 |
|
|
|
|
|
|
| NAVIOS MARITIME PARTNERS
L.P.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Expressed in thousands of U.S. Dollars except
unit and per unit data) |
| |
|
|
|
|
|
|
Three Month Period Ended
September 30, 2017 (unaudited) |
|
Three Month
Period Ended
September 30, 2016
(unaudited) |
|
Nine Month Period Ended
September 30, 2017 (unaudited) |
|
Nine Month Period Ended
September 30, 2016 (unaudited) |
|
| Time charter and voyage
revenues |
$ |
59,954 |
|
$ |
50,341 |
|
$ |
152,383 |
|
$ |
140,859 |
|
| Time charter and voyage
expenses |
|
(1,402 |
) |
|
(578 |
) |
|
(2,815 |
) |
|
(4,389 |
) |
| Direct vessel
expenses |
|
(2,190 |
) |
|
(1,680 |
) |
|
(5,523 |
) |
|
(4,670 |
) |
| Management fees
(entirely through related partiestransactions) |
|
(20,284 |
) |
|
(14,881 |
) |
|
(50,089 |
) |
|
(44,320 |
) |
| General and
administrative expenses |
|
(3,888 |
) |
|
(2,367 |
) |
|
(11,965 |
) |
|
(7,466 |
) |
| Depreciation and
amortization |
|
(21,083 |
) |
|
(38,142 |
) |
|
(56,538 |
) |
|
(75,755 |
) |
| Vessel impairment
losses |
|
— |
|
|
— |
|
|
— |
|
|
(17,193 |
) |
| Loss on sale of
securities |
|
— |
|
|
(19,435 |
) |
|
— |
|
|
(19,435 |
) |
| Interest expense and
finance cost, net |
|
(9,882 |
) |
|
(7,608 |
) |
|
(28,382 |
) |
|
(23,641 |
) |
| Interest income |
|
990 |
|
|
176 |
|
|
2,316 |
|
|
340 |
|
| Gain on change in
control |
|
4,068 |
|
|
— |
|
|
4,068 |
|
|
— |
|
| Other income |
|
3,180 |
|
|
3,033 |
|
|
9,250 |
|
|
9,265 |
|
| Other expense |
|
(349 |
) |
|
(2,722 |
) |
|
(4,799 |
) |
|
(4,055 |
) |
| Equity in net earnings
of affiliated companies |
|
59 |
|
|
— |
|
|
59 |
|
|
— |
|
|
|
|
|
|
|
| Net income/
(loss) |
$ |
9,173 |
|
$ |
(33,863 |
) |
$ |
7,965 |
|
$ |
(50,460 |
) |
| Less: Net income/
(loss) attributable to thenoncontrolling interest |
$ |
116 |
|
|
— |
|
$ |
(239 |
) |
|
— |
|
|
|
|
|
|
|
| Net income/
(loss) attributable to Navios Partnersunitholders |
$ |
9,289 |
|
$ |
(33,863 |
) |
$ |
7,726 |
|
$ |
(50,460 |
) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Three Month Period Ended
September 30, 2017 (unaudited) |
|
Three Month Period Ended
September 30, 2016 (unaudited) |
|
|
Nine Month Period Ended
September 30, 2017 (unaudited) |
|
Nine Month Period Ended
September 30, 2016 (unaudited) |
|
| Earnings/ (loss) per
unit: |
|
|
|
|
| Common unit (basic and
diluted) |
$ |
0.06 |
|
$ |
(0.40 |
) |
|
$ |
0.06 |
|
$ |
(0.60 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| NAVIOS MARITIME PARTNERS
L.P.Other Financial Information |
| |
|
|
|
|
Nine Month Period Ended
September 30, 2017 ($’000) (Unaudited) |
|
|
Nine Month Period Ended
September 30, 2016 ($’000) (Unaudited) |
|
| Net cash provided by
operating activities |
$ |
37,905 |
|
|
$ |
34,625 |
|
| Net cash (used in)/
provided by investing activities |
|
(179,526 |
) |
|
|
20,392 |
|
| Net cash provided by/
(used in) financing activities |
|
148,942 |
|
|
|
(41,188 |
) |
| Increase in
cash and cash equivalents |
$ |
7,321 |
|
|
$ |
13,829 |
|
|
|
|
|
| |
|
| EXHIBIT 2 |
| |
|
|
Owned Drybulk Vessels |
|
Type |
|
Built |
|
Capacity(DWT) |
|
| Navios Apollon(1) |
|
Ultra-Handymax |
|
2000 |
|
52,073 |
|
| Navios Soleil |
|
Ultra-Handymax |
|
2009 |
|
57,337 |
|
| Navios La Paix |
|
Ultra-Handymax |
|
2014 |
|
61,485 |
|
| Navios Christine B |
|
Ultra-Handymax |
|
2009 |
|
58,058 |
|
| 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 Prosperity
I |
|
Panamax |
|
2007 |
|
75,527 |
|
| Navios Libertas |
|
Panamax |
|
2007 |
|
75,511 |
|
| 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 |
|
| Navios Beaufiks |
|
Capesize |
|
2004 |
|
180,310 |
|
| Navios Ace |
|
Capesize |
|
2011 |
|
179,016 |
|
| Navios Sol |
|
Capesize |
|
2009 |
|
180,274 |
|
| Navios Symphony |
|
Capesize |
|
2010 |
|
178,132 |
|
| Navios Aster |
|
Capesize |
|
2010 |
|
179,314 |
|
| |
|
|
|
|
|
|
|
(1) The vessel was sold on April 21, 2017.
| |
|
|
Owned 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 |
|
| |
|
|
|
|
|
|
|
|
Note: Excludes Navios Containers’ Fleet.
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net income/(loss) attributable
to Navios Partners’ unitholders before interest and finance costs,
before depreciation and amortization (including intangible
accelerated amortization) and income taxes. Adjusted EBITDA
represents EBITDA before equity compensation expense, loss on sale
of vessel, impairment losses and allowance for doubtful accounts,
reactivation costs and gain on change in control. Navios Partners
uses 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. 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
and write-off of deferred finance charges and other related
expenses, (v) allowance for doubtful accounts,
(vi) equity in net earnings of affiliated companies,
(vii) payments for drydock and special survey costs,
(viii) gain/(loss) on sale of assets/subsidiaries,
(ix) impairment charges, (x) non-cash accrued interest
income and amortization of deferred revenue, (xi) gain/(loss)
on debt repayments, (xii) equity compensation expense, (xiii)
gain on change in control and (xiv) noncontrolling interest. 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, estimated maintenance and replacement capital expenditures
and one-off items. 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 EndedSeptember 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2017($
‘000)(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
| |
Net cash
provided by/ (used in) operating activities |
|
$ |
27,377 |
|
|
|
$ |
(4,111 |
) |
|
|
$ |
37,905 |
|
|
|
$ |
34,625 |
|
|
| |
Net
increase in operating assets |
|
|
2,636 |
|
|
|
|
31,001 |
|
|
|
|
25,958 |
|
|
|
|
33,864 |
|
|
| |
Net
(decrease)/ increase in operating liabilities |
|
|
(3,142 |
) |
|
|
|
(3,099 |
) |
|
|
|
4,222 |
|
|
|
|
(1,439 |
) |
|
| |
Net
interest cost |
|
|
8,890 |
|
|
|
|
7,432 |
|
|
|
|
26,065 |
|
|
|
|
23,301 |
|
|
| |
Amortization and write-off of deferred financingcost |
|
|
(1,806 |
) |
|
|
|
(932 |
) |
|
|
|
(7,965 |
) |
|
|
|
(3,017 |
) |
|
| |
Non cash
accrued interest income andamortization of deferred revenue |
|
|
3,153 |
|
|
|
|
— |
|
|
|
|
9,357 |
|
|
|
|
— |
|
|
| |
Equity
compensation expense |
|
|
(474 |
) |
|
|
|
— |
|
|
|
|
(1,408 |
) |
|
|
|
— |
|
|
| |
Gain on
change in control |
|
|
4,068 |
|
|
|
|
— |
|
|
|
|
4,068 |
|
|
|
|
— |
|
|
| |
Vessel
impairment losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(17,193 |
) |
|
| |
Loss on
disposal of shares |
|
|
— |
|
|
|
|
(19,435 |
) |
|
|
|
— |
|
|
|
|
(19,435 |
) |
|
| |
Non cash
accrued interest income fromreceivable from affiliates |
|
|
65 |
|
|
|
|
2,566 |
|
|
|
|
138 |
|
|
|
|
2,566 |
|
|
| |
Allowance
for doubtful accounts |
|
|
— |
|
|
|
|
— |
|
|
|
|
(1,495 |
) |
|
|
|
— |
|
|
| |
Loss on
vessel disposal |
|
|
— |
|
|
|
|
— |
|
|
|
|
(1,260 |
) |
|
|
|
— |
|
|
| |
Noncontrolling interest |
|
|
116 |
|
|
|
|
— |
|
|
|
|
(239 |
) |
|
|
|
— |
|
|
| |
Equity in
net earnings of affiliated companies |
|
|
123 |
|
|
|
|
(31 |
) |
|
|
|
59 |
|
|
|
|
(6 |
) |
|
| |
EBITDA(1) |
|
$ |
41,006 |
|
|
|
$ |
13,391 |
|
|
|
$ |
95,405 |
|
|
|
$ |
53,266 |
|
|
| |
Allowance
for doubtful accounts |
|
|
— |
|
|
|
|
— |
|
|
|
|
1,495 |
|
|
|
|
— |
|
|
| |
Loss on
vessel disposal |
|
|
— |
|
|
|
|
— |
|
|
|
|
1,260 |
|
|
|
|
— |
|
|
| |
Loss on
disposal of shares |
|
|
— |
|
|
|
|
19,435 |
|
|
|
|
— |
|
|
|
|
19,435 |
|
|
| |
Equity
compensation expense |
|
|
474 |
|
|
|
|
— |
|
|
|
|
1,408 |
|
|
|
|
— |
|
|
| |
Reactivation cost |
|
|
447 |
|
|
|
|
— |
|
|
|
|
447 |
|
|
|
|
— |
|
|
| |
Gain on
change in control |
|
|
(4,068 |
) |
|
|
|
— |
|
|
|
|
(4,068 |
) |
|
|
|
— |
|
|
| |
Vessel
impairment losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
17,193 |
|
|
| |
Adjusted EBITDA |
|
$ |
37,859 |
|
|
|
$ |
32,826 |
|
|
|
$ |
95,947 |
|
|
|
$ |
89,894 |
|
|
| |
Cash
interest income |
|
|
439 |
|
|
|
|
— |
|
|
|
|
809 |
|
|
|
|
5 |
|
|
| |
Cash
interest paid |
|
|
(7,044 |
) |
|
|
|
(6,661 |
) |
|
|
|
(18,845 |
) |
|
|
|
(20,067 |
) |
|
| |
Maintenance
and replacement capital expenditures |
|
|
(4,061 |
) |
|
|
|
(2,975 |
) |
|
|
|
(10,801 |
) |
|
|
|
(8,924 |
) |
|
| |
Operating Surplus |
|
$ |
27,193 |
|
|
|
$ |
23,190 |
|
|
|
$ |
67,110 |
|
|
|
$ |
60,908 |
|
|
| |
Cash
reserves |
|
|
(27,193 |
) |
|
|
|
(23,190 |
) |
|
|
|
(67,110 |
) |
|
|
|
(60,908 |
) |
|
| |
Available cash for distribution |
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three MonthPeriod EndedSeptember 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2017($
‘000)(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
| |
Net cash
provided by/ (used in) operating activities |
|
$ |
27,377 |
|
|
$ |
(4,111 |
) |
|
|
$ |
|
|
37,905 |
|
|
$ |
|
34,625 |
|
| |
Net cash
(used in)/ provided by investing activities |
|
$ |
(167,757 |
) |
|
$ |
20,842 |
|
|
|
$ |
|
|
(179,526 |
) |
|
$ |
|
20,392 |
|
| |
Net cash
provided by / (used in) financing activities |
|
$ |
85,312 |
|
|
$ |
(1,479 |
) |
|
|
$ |
|
|
148,942 |
|
|
$ |
|
(41,188 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Apr 2023 to Apr 2024
