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, 2016.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “For the third quarter of 2016,
we recorded $50.3 million of revenue and $13.4 million of EBITDA.
Our results were affected by one-time impairment charges on the
sale of shares received in connection with HMM's out-of-court
restructuring. Yet, in a difficult dry bulk and container market,
the Company has materially improved the Term Loan B collateral
package, solidified its balance sheet and added
liquidity.”
Angeliki Frangou continued, “Navios Partners is
a unique platform in the dry sector. Since the beginning of 2016,
we have repaid almost $107 million of debt and
have net debt to book capitalization of 42.9%. In addition, we have
no significant debt maturities until 2018. Under our current
cost structure and with current spot market rates, we expect to
generate about $21 million in free cash flow for the remainder of
2016 and about $84 million in free cash flow for 2017.”
Debt Developments
a. $30.2 million reduction of commercial bank
loans
In November 2016, the Company reduced one of its
commercial bank facilities by $30.2 million through prepayment of
$28.0 million in cash and achieving a $2.2 million benefit to
nominal value. Following the prepayment, six vessels were removed
from the collateral package. The outstanding balance of the
facility is currently $41.8 million and is repayable in the fourth
of quarter of 2017 with a final balloon payment of $31.9
million.
b. $50.5 million additional collateral to the Term Loan
B
In November 2016, Navios Partners provided $50.5
million additional collateral to the Term B Loan consisting of:
a. $37.0 million value of six drybulk vessels transferred from
commercial bank facilities; andb. $13.5 million cash collateral.
The cash collateral will be replaced with a Capesize vessel that is
expected to be delivered within December 2016.
Following the above additions, within 2016,
Navios Partners has increased the collateral package of the Term
Loan B by $99.0 million and $152.5 million from Q1 2015. In
addition, Navios Partners has prepaid $25.0 million during the
first half of 2016.
Fleet Update
In October 2016, Navios Partners agreed to
acquire a 2004 built Capesize vessel, for a total cash
consideration of $15.1 million and paid a deposit of 10% in
November 2016. The vessel is expected to be delivered in the fourth
quarter of 2016. Upon delivery, the vessel will be added as
collateral to the Term Loan B.
Charter developments
On August 31, 2016, one of the Company’s
charterers, Hanjin Shipping Corporation Ltd. (“Hanjin”), filed for
rehabilitation. Navios Partners had two Capesize vessels chartered
to Hanjin at a net rate of $29,356 per day until December 2020. In
September, both vessels were redelivered to Navios Partners’
commercial management and were rechartered to third parties. Navios
is closely monitoring the developments and is proceeding with
claims for the lost revenues.
Long-Term Cash Flow
Navios Partners has entered into medium to
long-term time charter-out agreements for its vessels with a
remaining average term of 2.7 years. Navios Partners has currently
contracted out 99.1% of its available days for 2016, 58.8% for 2017
and 36.9% for 2018, including index-linked charters, respectively,
expecting to generate revenues of approximately $192.2 million,
$103.0 million and $82.4 million, respectively. The average
expected daily charter-out rate for the fleet is $17,614, $23,742
and $26,690 for 2016, 2017 and 2018, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of income for the three and nine months
ended September 30, 2016 and 2015. The quarterly 2016 and 2015
information was derived from the unaudited condensed consolidated
financial statements for the respective periods. Adjusted EBITDA,
Earnings per Common unit, Adjusted Net Income and Operating Surplus
are non-GAAP financial measures and should not be used in isolation
or substitution for Navios Partners’ results.
|
|
|
|
|
|
|
|
|
Three Month |
|
Three Month |
|
Nine Month |
|
Nine Month |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
September
30,2016 |
|
September
30,2015 |
|
September
30,2016 |
|
September
30,2015 |
(in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
50,341 |
|
|
|
$ |
57,103 |
|
|
$ |
140,859 |
|
|
$ |
170,362 |
|
Net (loss)/ income |
$ |
(33,863 |
) |
|
|
$ |
11,764 |
|
|
$ |
(50,460 |
) |
|
$ |
33,998 |
|
Adjusted Net
income |
$ |
6,098 |
|
(1)(3) |
|
$ |
11,764 |
|
|
$ |
6,693(2)(3) |
|
|
$ |
33,998 |
|
EBITDA |
$ |
13,391 |
|
|
|
$ |
40,872 |
|
|
$ |
53,266 |
|
|
$ |
117,547 |
|
Adjusted EBITDA |
$ |
32,826 |
|
(1 |
) |
|
$ |
40,872 |
|
|
$ |
89,894(2) |
|
|
$ |
117,547 |
|
Earnings per Common
unit (basic and diluted) |
$ |
(0.40 |
) |
|
|
$ |
0.14 |
|
|
$ |
(0.60 |
) |
|
$ |
0.39 |
|
Adjusted Earnings
per Common unit (basic and diluted) |
$ |
0.07 |
|
(1)(3) |
|
$ |
0.14 |
|
|
$ |
0.08(2)(3) |
|
|
$ |
0.39 |
|
Operating Surplus |
$ |
23,190 |
|
|
|
$ |
30,431 |
|
|
$ |
60,908 |
|
|
$ |
87,557 |
|
Maintenance and
Replacement Capital expenditure reserve |
$ |
2,975 |
|
|
|
$ |
3,516 |
|
|
$ |
8,924 |
|
|
$ |
10,190 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA, Adjusted Net Income and
Adjusted Earnings per Common unit for the three months
ended September 30, 2016 have been adjusted to exclude
a $19.4 million loss on the disposal of the HMM shares.
(2) Adjusted EBITDA, Adjusted Net Income and
Adjusted Earnings per Common unit for the nine months
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.
(3) Adjusted Net Income and Adjusted Earnings
per Common unit for the three and nine months ended September
30, 2016 do not include 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, 2016 and 2015
Time charter and voyage revenues for the three
month period ended September 30, 2016 decreased by
$6.8 million or 11.8% to $50.3 million, as compared to
$57.1 million for the same period in 2015. The decrease was
mainly attributable to the decrease in TCE to $16,968 per day for
the three month period ended September 30, 2016, from $20,305
per day for the three month period ended September 30, 2015.
The decrease in time charter and voyage revenues was primarily due
to the decline in the freight market during 2016, as compared to
the same period in 2015. The above decrease was partially mitigated
by the increase in available days of the fleet to 2,812 days
for the three month period ended September 30, 2016, as
compared to 2,768 days for the three month period ended
September 30, 2015 mainly due to approximately 84 drydock days
during the third quarter of 2015.
EBITDA for the three months 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 this
item, Adjusted EBITDA decreased by $8.0 million to
$32.9 million for the three month period ended
September 30, 2016, as compared to $40.9 million for the same
period in 2015. The decrease in Adjusted EBITDA was primarily due
to a: (i) $6.8 million decrease in revenue; (ii) $2.5 million
increase in other expense; (iii) $0.5 million increase in general
and administrative expenses; and (iv) $0.4 million increase in
management fees. The above decrease was partially mitigated
by a: (i) $0.3 million decrease in time and voyage
charter expenses; and (ii) $1.7 million increase in other
income.
The reserve for estimated maintenance and
replacement capital expenditures for the three month period ended
September 30, 2016 and 2015 was $3.0 million and $3.5 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated Operating Surplus for
the three month period ended September 30, 2016 of
$23.2 million, compared to $30.4 million for the three
month period ended September 30, 2015. Operating Surplus is a
non-GAAP financial measure used by certain investors to assist in
evaluating a partnership’s ability to make quarterly cash
distributions (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Net income for the three months ended September
30, 2016 was negatively affected by the accounting effect of a
$19.4 million loss on the disposal of the HMM shares and a $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 months ended September 30,
2016 amounted to $6.1 million compared to $11.8 million
for the three months ended September 30, 2015. The decrease in
Adjusted net income of $5.7 million was due to a: (i) $8.0 million
decrease in adjusted EBITDA; and (ii) $0.4 million increase in
direct vessel expenses, comprising of the amortization of dry dock
and special survey costs. The above decrease was partially
mitigated by a: (i) $2.3 million decrease in depreciation and
amortization expense (ii) $0.3 million decrease in interest
expenses and finance cost, net; and (iii) $0.1 million increase in
interest income.
Nine month periods ended September
30, 2016 and 2015
Time charter and voyage revenues for the nine
month period ended September 30, 2016 decreased by
$29.5 million or 17.3% to $140.9 million, as compared to
$170.4 million for the same period in 2015. The decrease was
mainly attributable to the decrease in TCE to $16,165 per day for
the nine month period ended September 30, 2016, from $20,267
per day for the nine month period ended September 30, 2015.
The decrease in time charter and voyage revenues was primarily due
to the decline in the freight market during 2016, as compared to
the same period in 2015, and was partially mitigated by an increase
in revenue due to the delivery of the MSC Cristina in the second
quarter of 2015. As a result of the vessel acquisition in April
2015, available days of the fleet increased to 8,442 days for
the nine month period ended September 30, 2016, as compared to
8,199 days for the nine month period ended September 30,
2015.
EBITDA for the nine months ended September 30,
2016 was negatively affected by the accounting effect of a $17.2
million impairment loss on the sale of the MSC Cristina and a $19.4
million loss on the disposal of the HMM shares. Excluding these
items, Adjusted EBITDA decreased by $27.6 million to
$89.9 million for the nine month period ended
September 30, 2016, as compared to $117.5 million for the
same period in 2015. The decrease in Adjusted EBITDA was primarily
due to a: (i) $29.5 million decrease in revenue; (ii)
$2.3 million increase in management fees due to the increased
number of vessels and the increased daily management fee;
(iii) $1.7 million increase in general and administrative
expenses; and (iv) $3.1 million increase in other expenses.
The above decrease was partially mitigated by a: (i) $1.5
million decrease in time charter and voyage expenses; and
(ii) $7.6 million increase in other income.
The reserve for estimated maintenance and
replacement capital expenditures for the nine month periods ended
September 30, 2016 and 2015 was $8.9 million and $10.2
million, respectively (please see Reconciliation of Non-GAAP
Financial Measures in Exhibit 3).
Navios Partners generated operating surplus for
the nine month period ended Septembers 30, 2016 of
$60.9 million, compared to $87.6 million for the nine
month period ended September 30, 2015. Operating Surplus is a
non-GAAP financial measure used by certain investors to assist in
evaluating a partnership’s ability to make quarterly cash
distributions (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Net income for the nine months ended September
30, 2016 was negatively affected by the accounting effect of a
$17.2 million impairment loss on the sale of the MSC Cristina,
$19.4 million loss on the disposal of the HMM shares and a $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 month period ended
September 30, 2016 amounted to $6.7 million compared to
$34.0 million for the nine month period ended
September 30, 2015. The decrease in Adjusted net income of
$27.3 million was due to a: (i) $27.6 million decrease in adjusted
EBITDA; and (ii) $2.1 million increase in direct vessel expenses,
comprising of the amortization of dry dock and special survey
costs. The above decrease was partially mitigated by a: (i) $1.9
million decrease in depreciation and amortization expense, (ii)
$0.4 decrease in interest expense and finance cost, net and (ii)
$0.2 million increase in interest income.
Fleet Employment Profiles
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
and nine month periods ended September 30, 2016 and 2015.
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|
|
|
|
|
|
|
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) |
Available Days(1) |
|
|
2,812 |
|
|
|
|
2,768 |
|
|
|
|
8,442 |
|
|
|
|
8,199 |
|
Operating Days(2) |
|
|
2,806 |
|
|
|
|
2,762 |
|
|
|
|
8,431 |
|
|
|
|
8,190 |
|
Fleet Utilization(3) |
|
|
99.8 |
% |
|
|
|
99.8 |
% |
|
|
|
99.9 |
% |
|
|
|
99.9 |
% |
Time Charter Equivalent
(per day) |
|
$ |
16,968 |
|
|
|
$ |
20,305 |
|
|
|
$ |
16,165 |
|
|
|
$ |
20,267 |
|
Vessels operating at
period end |
|
|
31 |
|
|
|
|
31 |
|
|
|
|
31 |
|
|
|
|
31 |
|
(1 |
) |
Available days for the fleet represent total calendar days the
vessels were in Navios Partners’ possession for the relevant period
after subtracting off-hire days associated with scheduled repairs,
dry dockings or special surveys. The shipping industry uses
available days to measure the number of days in a relevant period
during which a vessel is capable of generating revenues. |
(2 |
) |
Operating days is the number of available days in the relevant
period less the aggregate number of days that the vessels are
off-hire due to any reason, including unforeseen circumstances. The
shipping industry uses operating days to measure the aggregate
number of days in a relevant period during which vessels actually
generate revenues. |
(3 |
) |
Fleet
utilization is the percentage of time that Navios Partners’ vessels
were available for revenue generating available days, and is
determined by dividing the number of operating days during a
relevant period by the number of available days during that period.
The shipping industry uses fleet utilization to measure efficiency
in finding employment for vessels and minimizing the amount of days
that its vessels are off-hire for reasons other than scheduled
repairs, drydockings or special surveys. |
(4 |
) |
TCE
rates: TCE rates are defined as voyage and time charter revenues
less voyage expenses during a period divided by the number of
available days during the period. The TCE rate is a standard
shipping industry performance measure used primarily to present the
actual daily earnings generated by vessels on various types of
charter contracts for the number of available days of the
fleet. |
|
|
|
Conference Call details:
Navios Partners' management will host a
conference call today, Monday, November 14, 2016 to discuss the
results for the third quarter and nine months ended September 30,
2016.
Call Date/Time: Monday, November 14, 2016 at 8:30 am ET Call
Title: Navios Partners Q3 2016 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 9002 0668The 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: 9002 0668
Slides and audio webcast:
There will also be a live webcast of the
conference call, through the Navios Partners website
(www.navios-mlp.com) under “Investors”. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.
A supplemental slide presentation will be
available on the Navios Partners’ website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Partners
L.P.
Navios Partners (NYSE:NMM) is a publicly traded
master limited partnership which owns and operates container and
dry cargo vessels. For more information, please visit our website
at www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events including Navios
Partners’ 2016 cash flow generation, future contracted revenues,
future distributions and its ability to have a dividend going
forward, opportunities to reinvest cash accretively in a fleet
renewal program or otherwise, potential capital gains, our ability
to take advantage of dislocation in the market and Navios Partners’
growth strategy and measures to implement such strategy; including
expected vessel acquisitions and entering into further time
charters. Words such as “may”, “expects”, “intends”, “plans”,
“believes”, “anticipates”, “hopes”, “estimates”, and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters.
These forward-looking statements are based on
the information available to, and the expectations and assumptions
deemed reasonable by Navios Partners at the time these statements
were made. Although Navios Partners believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown
risks and are based upon a number of assumptions and estimates
which are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of Navios
Partners. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors
that
could cause actual results to differ materially
include, but are not limited to, uncertainty relating to global
trade, including prices of seaborne commodities and continuing
issues related to seaborne volume and ton miles, our continued
ability to enter into long-term time charters, our ability to
maximize the use of our vessels, expected demand in the dry cargo
shipping sector in general and the demand for our Panamax,
Capesize, Ultra-Handymax and Container vessels in particular,
fluctuations in charter rates for dry cargo carriers and container
vessels, the aging of our fleet and resultant increases in
operations costs, the loss of any customer or charter or vessel,
the financial condition of our customers, changes in the
availability and costs of funding due to conditions in the bank
market, capital markets and other factors, increases in costs
and expenses, including but not limited to: crew wages,
insurance, provisions, port expenses, lube oil, bunkers, repairs,
maintenance and general and administrative
expenses, the expected cost of, and our ability
to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business,
general domestic and international political conditions,
competitive factors in the market in which Navios Partners
operates; risks associated with operations outside the United
States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners
expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Navios Partners’
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based. Navios
Partners makes no prediction or statement about the performance of
its common units.
|
EXHIBIT
1 |
NAVIOS
MARITIME PARTNERS L.P. |
Selected
Balance Sheet Data |
(Expressed in
thousands of U.S. Dollars except unit data) |
|
|
|
|
|
|
|
|
|
September 30,2016(unaudited) |
|
December 31,2015(unaudited) |
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash |
|
$ |
42,162 |
|
$ |
34,539 |
Other current
assets |
|
|
33,604 |
|
|
5,296 |
Vessels, net |
|
|
1,045,317 |
|
|
1,230,049 |
Vessel held for sale |
|
|
125,000 |
|
|
— |
Intangible assets |
|
|
22,122 |
|
|
55,339 |
Other non-current
assets |
|
|
32,569 |
|
|
25,068 |
Total
assets |
|
$ |
1,300,774 |
|
$ |
1,350,291 |
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
Other current
liabilities |
|
|
21,833 |
|
|
18,192 |
Current portion of
long-term debt, net |
|
|
42,205 |
|
|
23,336 |
Long-term debt, net |
|
|
512,256 |
|
|
574,742 |
Other non-current
liabilities |
|
|
42,725 |
|
|
1,806 |
Total partners’
capital |
|
|
681,755 |
|
|
732,215 |
Total liabilities
and partners’ capital |
|
$ |
1,300,774 |
|
$ |
1,350,291 |
NAVIOS
MARITIME PARTNERS L.P. |
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(Expressed in
thousands of U.S. Dollars except unit and per unit amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod EndedSeptember 30, 2016(unaudited) |
|
Three MonthPeriod EndedSeptember 30, 2015(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2016(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2015(unaudited) |
Time charter and voyage revenues |
|
$ |
50,341 |
|
|
$ |
57,103 |
|
|
$ |
140,859 |
|
|
$ |
170,362 |
|
Time charter and voyage
expenses |
|
|
(578 |
) |
|
|
(908 |
) |
|
|
(4,389 |
) |
|
|
(5,856 |
) |
Direct vessel
expenses |
|
|
(1,680 |
) |
|
|
(1,278 |
) |
|
|
(4,670 |
) |
|
|
(2,572 |
) |
Management fees (entirely
through related parties transactions) |
|
|
(14,881 |
) |
|
|
(14,481 |
) |
|
|
(44,320 |
) |
|
|
(42,023 |
) |
General and administrative expenses |
|
|
(2,367 |
) |
|
|
(1,900 |
) |
|
|
(7,466 |
) |
|
|
(5,724 |
) |
Depreciation and
amortization |
|
|
(38,142 |
) |
|
|
(19,983 |
) |
|
|
(75,755 |
) |
|
|
(57,127 |
) |
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(17,193 |
) |
|
|
— |
|
Loss on disposal of
shares |
|
|
(19,435 |
) |
|
|
— |
|
|
|
(19,435 |
) |
|
|
— |
|
Interest expense and
finance cost, net |
|
|
(7,608 |
) |
|
|
(7,901 |
) |
|
|
(23,641 |
) |
|
|
(24,003 |
) |
Interest income |
|
|
176 |
|
|
|
54 |
|
|
|
340 |
|
|
|
153 |
|
Other income |
|
|
3,033 |
|
|
|
1,303 |
|
|
|
9,265 |
|
|
|
1,703 |
|
Other expense |
|
|
(2,722 |
) |
|
|
(245 |
) |
|
|
(4,055 |
) |
|
|
(915 |
) |
Net (loss)/
income |
|
$ |
(33,863 |
) |
|
$ |
11,764 |
|
|
$ |
(50,460 |
) |
|
$ |
33,998 |
|
Earnings per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod
EndedSeptember 30, 2016(unaudited) |
|
|
Three MonthPeriod EndedSeptember 30, 2015(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2016(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2015(unaudited) |
Earnings per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit (basic and diluted) |
$ |
|
(0.40 |
) |
|
|
$ |
0.14 |
|
|
$ |
|
(0.60 |
) |
|
|
$ |
0.39 |
NAVIOS
MARITIME PARTNERS L.P. |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Expressed in
thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
Nine MonthPeriod
EndedSeptember 30,2016(unaudited) |
|
Nine MonthPeriod
EndedSeptember 30,2015(unaudited) |
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
Net cash provided
by operating activities |
|
|
34,625 |
|
|
|
97,308 |
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Deposits for acquisition
of vessels, net of transfers to vessel acquisitions |
|
|
— |
|
|
|
(147,830 |
) |
Loans receivable from
affiliates |
|
|
(450 |
) |
|
|
(696 |
) |
Proceeds from sale of
shares |
|
|
20,842 |
|
|
|
— |
|
Net cash provided
by / (used in) investing activities |
|
|
20,392 |
|
|
|
(148,526 |
) |
FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Cash distributions
paid |
|
|
— |
|
|
|
(114,291 |
) |
Net proceeds from issuance
of general partner units |
|
|
— |
|
|
|
1,528 |
|
Proceeds from issuance of
common units, net of offering costs |
|
|
— |
|
|
|
72,090 |
|
Proceeds from long term
debt |
|
|
29,000 |
|
|
|
79,819 |
|
(Increase)/ decrease in
restricted cash |
|
|
6,047 |
|
|
|
(6,841 |
) |
Repayment of long-term
debt and payment of principal |
|
|
(75,094 |
) |
|
|
(54,695 |
) |
Deferred financing
costs |
|
|
(1,141 |
) |
|
|
— |
|
Debt issuance costs |
|
|
— |
|
|
|
(746 |
) |
Net cash used in
financing activities |
|
|
(41,188 |
) |
|
|
(23,136 |
) |
Increase in cash
and cash equivalents |
|
|
13,829 |
|
|
|
(74,354 |
) |
Cash and cash
equivalents, beginning of period |
|
|
26,750 |
|
|
|
99,495 |
|
Cash and cash
equivalents, end of period |
|
$ |
40,579 |
|
|
$ |
25,141 |
|
|
|
|
|
|
|
|
|
|
EXHIBIT 2 |
|
Owned Drybulk Vessels |
|
Type |
|
Built |
|
Capacity (DWT) |
Navios Apollon |
|
Ultra-Handymax |
|
2000 |
|
52,073 |
Navios Soleil |
|
Ultra-Handymax |
|
2009 |
|
57,337 |
Navios La Paix |
|
Ultra-Handymax |
|
2014 |
|
61,485 |
Navios Gemini S |
|
Panamax |
|
1994 |
|
68,636 |
Navios Libra II |
|
Panamax |
|
1995 |
|
70,136 |
Navios Felicity |
|
Panamax |
|
1997 |
|
73,867 |
Navios Galaxy I |
|
Panamax |
|
2001 |
|
74,195 |
Navios Hyperion |
|
Panamax |
|
2004 |
|
75,707 |
Navios Alegria |
|
Panamax |
|
2004 |
|
76,466 |
Navios Orbiter |
|
Panamax |
|
2004 |
|
76,602 |
Navios Helios |
|
Panamax |
|
2005 |
|
77,075 |
Navios Hope |
|
Panamax |
|
2005 |
|
75,397 |
Navios Sun |
|
Panamax |
|
2005 |
|
76,619 |
Navios Sagittarius |
|
Panamax |
|
2006 |
|
75,756 |
Navios Harmony |
|
Panamax |
|
2006 |
|
82,790 |
Navios Fantastiks |
|
Capesize |
|
2005 |
|
180,265 |
Navios Aurora II |
|
Capesize |
|
2009 |
|
169,031 |
Navios Pollux |
|
Capesize |
|
2009 |
|
180,727 |
Navios Fulvia |
|
Capesize |
|
2010 |
|
179,263 |
Navios Melodia |
|
Capesize |
|
2010 |
|
179,132 |
Navios Luz |
|
Capesize |
|
2010 |
|
179,144 |
Navios Buena
Ventura |
|
Capesize |
|
2010 |
|
179,259 |
Navios Joy |
|
Capesize |
|
2013 |
|
181,389 |
Vessel to be
delivered |
|
Type |
|
Built |
|
Capacity(DWT) |
Navios TBN(1) |
|
Capesize |
|
2004 |
|
180,310 |
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 |
MSC Cristina |
|
Container |
|
2011 |
|
13,100 |
(1) The vessel is expected to be delivered in
the fourth quarter of 2016.
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net income before interest and
finance costs, before depreciation and amortization and income
taxes. We use EBITDA and Adjusted EBITDA as a liquidity measure and
reconcile EBITDA and Adjusted EBITDA to net cash provided by/(used
in) operating activities, the most comparable U.S. GAAP liquidity
measure. Adjusted EBITDA in this document is calculated as follows:
net cash provided by/(used in) operating activities adding back,
when applicable and as the case may be, the effect of (i) net
increase/(decrease) in operating assets, (ii) net
(increase)/decrease in operating liabilities, (iii) net interest
cost, (iv) amortization of deferred finance charges and other
related expenses, (v) provision for losses on accounts receivable,
(vi) equity in affiliates, net of dividends received, (vii)
payments for drydock and special survey costs, (viii) gain/(loss)
on sale of assets/subsidiaries, (ix) impairment charges and (x) non
cash accrued interest income and revenue. Navios Partners believes
that EBITDA and Adjusted EBITDA are each the basis upon which
liquidity can be assessed and presents useful information to
investors regarding Navios Partners’ ability to service and/or
incur indebtedness, pay capital expenditures, meet working capital
requirements and make cash distributions. Navios Partners also
believes that EBITDA and Adjusted EBITDA are used: (i) by potential
lenders to evaluate potential transactions; (ii) to evaluate and
price potential acquisition candidates; and (iii) by securities
analysts, investors and other interested parties in the evaluation
of companies in our industry.
Adjusted EBITDA represents EBITDA excluding
certain items, as described under “Earnings Highlights.”
EBITDA and Adjusted EBITDA have limitations as
an analytical tool, and should not be considered in isolation or as
a substitute for the analysis of Navios Partners’ results as
reported under U.S. GAAP. Some of these limitations are: (i) EBITDA
and Adjusted EBITDA do not reflect changes in, or cash requirements
for, working capital needs; and (ii) although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future. EBITDA and
Adjusted EBITDA do not reflect any cash requirements for such
capital expenditures. Because of these limitations, EBITDA and
Adjusted EBITDA should not be considered as a principal indicator
of Navios Partners’ performance. Furthermore, our calculation of
EBITDA and Adjusted EBITDA may not be comparable to that reported
by other companies due to differences in methods of
calculation.
2. Operating Surplus
Operating Surplus represents net income adjusted
for depreciation and amortization expense, non-cash interest
expense and estimated maintenance and replacement capital
expenditures. Maintenance and replacement capital expenditures are
those capital expenditures required to maintain over the long term
the operating capacity of, or the revenue generated by, Navios
Partners’ capital assets.
Operating Surplus is a quantitative measure used
in the publicly-traded partnership investment community to assist
in evaluating a partnership’s ability to make quarterly cash
distributions. Operating Surplus is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
3. Available Cash
Available Cash generally means for each fiscal
quarter, all cash on hand at the end of the quarter:
- less the amount of cash reserves established by the Board of
Directors to
- provide for the proper conduct of Navios Partners’ business
(including reserve for maintenance and replacement capital
expenditures);
- comply with applicable law, any of Navios Partners’ debt
instruments, or other agreements; or
- provide funds for distributions to the unitholders and to the
general partner for any one or more of the next four quarters;
- plus all cash on hand on the date of determination of available
cash for the quarter resulting from working capital borrowings made
after the end of the quarter. Working capital borrowings are
generally borrowings that are made under any revolving credit or
similar agreement used solely for working capital purposes or to
pay distributions to partners.
Available Cash is a quantitative measure used in
the publicly-traded partnership investment community to assist in
evaluating a partnership’s ability to make quarterly cash
distributions. Available cash is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
4. Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
Three MonthPeriod EndedSeptember 30, 2015($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2015($
‘000)(unaudited) |
Net cash provided by/ (used in)
operating activities |
|
$ |
(4,111 |
) |
|
$ |
28,342 |
|
|
$ |
34,625 |
|
|
$ |
97,308 |
|
Net increase
in operating assets |
|
|
31,001 |
|
|
|
7,132 |
|
|
|
33,864 |
|
|
|
15,244 |
|
Net increase
in operating liabilities |
|
|
(3,099 |
) |
|
|
(1,930 |
) |
|
|
(1,439 |
) |
|
|
(16,659 |
) |
Net interest
cost |
|
|
7,432 |
|
|
|
7,847 |
|
|
|
23,301 |
|
|
|
23,850 |
|
Amortization
and write-off of deferred financing cost |
|
|
(932 |
) |
|
|
(792 |
) |
|
|
(3,017 |
) |
|
|
(2,941 |
) |
Impairment
loss |
|
|
— |
|
|
|
— |
|
|
|
(17,193 |
) |
|
|
— |
|
Loss on
disposal of shares |
|
|
(19,435 |
) |
|
|
— |
|
|
|
(19,435 |
) |
|
|
— |
|
Non cash
accrued interest income and revenue |
|
|
2,566 |
|
|
|
— |
|
|
|
2,566 |
|
|
|
— |
|
Equity in
earnings of affiliates, net of dividends received |
|
|
(31 |
) |
|
|
273 |
|
|
|
(6 |
) |
|
|
745 |
|
EBITDA(1) |
|
$ |
13,391 |
|
|
$ |
40,872 |
|
|
$ |
53,266 |
|
|
$ |
117,547 |
|
Impairment
loss |
|
|
— |
|
|
|
— |
|
|
|
17,193 |
|
|
|
— |
|
Loss on
disposal of shares |
|
|
19,435 |
|
|
|
— |
|
|
|
19,435 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
32,826 |
|
|
$ |
40,872 |
|
|
$ |
89,894 |
|
|
$ |
117,547 |
|
Cash interest income |
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
47 |
|
Cash interest
paid |
|
|
(6,661 |
) |
|
|
(6,930 |
) |
|
|
(20,067 |
) |
|
|
(19,847 |
) |
Maintenance and replacement capital
expenditures |
|
|
(2,975 |
) |
|
|
(3,516 |
) |
|
|
(8,924 |
) |
|
|
(10,190 |
) |
Operating Surplus |
|
$ |
23,190 |
|
|
$ |
30,431 |
|
|
$ |
60,908 |
|
|
$ |
87,557 |
|
Cash distribution paid relating to
the third quarter |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(76,194 |
) |
Cash
reserves |
|
|
(23,190 |
) |
|
|
(12,416 |
) |
|
|
(60,908 |
) |
|
|
6,652 |
|
Available cash for distribution |
|
$ |
— |
|
|
$ |
18,015 |
|
|
$ |
— |
|
|
$ |
18,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
Three MonthPeriod EndedSeptember 30, 2015($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2016($
‘000)(unaudited) |
|
|
Nine
MonthPeriod EndedSeptember 30, 2015($
‘000)(unaudited) |
|
Net cash provided by/ (used in)
operating activities |
|
$ |
(4,111 |
) |
|
$ |
28,342 |
|
|
$ |
34,625 |
|
|
$ |
97,308 |
|
|
Net cash provided by/ (used in)
investing activities |
|
$ |
20,842 |
|
|
$ |
(350 |
) |
|
$ |
20,392 |
|
|
$ |
(148,526 |
) |
|
Net cash used in financing
activities |
|
$ |
(1,479 |
) |
|
$ |
(29,692 |
|
|
$ |
(41,188 |
) |
|
$ |
(23,136 |
) |
Contacts
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@capitallink.com
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