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
fourth quarter and year ended December 31, 2016.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Partners stated, “I am pleased with the results for 2016, a year of
many challenges. For the full year, Navios Partners reported
revenue of $190.5 million and EBITDA of $76.9 million. For
the fourth quarter, Navios Partners reported revenue of $49.7
million and EBITDA of $23.6 million.”
Angeliki Frangou continued, “We actively managed our liquidity
in 2016, generating about $151 million from the sale of vessels and
securities. We also reduced long-term debt by almost $178
million and increased the collateral value of the Term Loan B by
about $100 million. Overall, we are positioned to take
advantage of a recovery in the dry
sector.”
Debt Repayments -
Deleveraging
In January 2017, following the completion of the sale of the MSC
Cristina, Navios Partners repaid approximately $100.0 million of
bank debt. Proforma for these repayments, net debt/book
capitalization for December 31, 2016, has decreased to 36.5%. In
addition, during 2016, the Company reduced its net debt by $77.8
million.
Completion of Sale of the MSC
Cristina
In January 2017, the Company completed the sale of the MSC
Cristina, a 2011 South Korean-built Container vessel of 13,100 TEU.
The vessel was sold to an unrelated third party for a total net
sale price of $125.0 million. Approximately $100.0 million of the
sale proceeds were used to repay bank
debt.
Sale of the Navios Apollon
In January 2017, Navios Partners agreed to sell the Navios
Apollon, a 2000 Ultra-Handymax vessel of 52,073 dwt to an unrelated
third party, for a total net sale price of $4.8 million. Delivery
is expected by April 2017.
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 2.8 years. Navios Partners has currently contracted out
72.6% of its available days for 2017, 38.2% for 2018 and 20.1% for
2019, including index-linked charters, respectively, expecting to
generate revenues of approximately $111.9 million, $82.4 million
and $54.7 million, respectively. The average expected daily
charter-out rate for the fleet is $19,240, $26,690 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 month periods
and the years ended December 31, 2016 and 2015. The quarterly 2016
and 2015 information was derived from the unaudited condensed
consolidated financial statements for the respective periods.
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.
|
Three Month |
|
|
|
Three Month |
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended |
|
|
|
Period Ended |
|
Year Ended |
|
|
Year Ended |
|
December 31,2016 |
|
|
|
December 31,2015 |
|
December
31,2016 |
|
|
December 31,2015 |
(in $‘000
except per unit data) |
(unaudited) |
|
|
(unaudited) |
|
(unaudited) |
|
|
(unaudited) |
Revenue |
$ |
49,665 |
|
|
$ |
53,314 |
|
$ |
190,524 |
|
|
$ |
223,676 |
Net (loss)/ income |
$ |
(2,088 |
) |
|
$ |
7,807 |
|
$ |
(52,549 |
) |
|
$ |
41,805 |
Adjusted Net
income |
$ |
7,920 (1) |
|
$ |
7,807 |
|
$ |
14,613(2)(3) |
|
$ |
41,805 |
EBITDA |
$ |
23,642 |
|
|
$ |
35,732 |
|
$ |
76,908 |
|
|
$ |
153,279 |
Adjusted EBITDA |
$ |
33,650 (1) |
|
$ |
35,732 |
|
$ |
123,544(2) |
|
$ |
153,279 |
Earnings per Common
unit (basic and diluted) |
$ |
(0.02 |
) |
|
$ |
0.09 |
|
$ |
(0.62 |
) |
|
$ |
0.48 |
Adjusted Earnings
per Common unit (basic and diluted) |
$ |
0.09 (1) |
|
$ |
0.09 |
|
$ |
0.17(2)(3) |
|
$ |
0.48 |
Operating Surplus |
$ |
24,049 |
|
|
$ |
25,175 |
|
$ |
84,958 |
|
|
$ |
112,732 |
Maintenance and
Replacement Capital expenditure reserve |
$ |
2,975 |
|
|
$ |
3,621 |
|
$ |
11,899 |
|
|
$ |
13,811 |
(1) Adjusted EBITDA, Adjusted Net Income and
Adjusted Earnings per Common unit for the three months
ended December 31, 2016 have been adjusted to exclude
a $10.0 million impairment loss on one of our
vessels.
(2) Adjusted EBITDA, Adjusted Net Income and
Adjusted Earnings per Common unit for the year ended December
31, 2016 have been adjusted to exclude a $19.4 million
loss on the sale of the HMM securities and a $27.2
million impairment loss on two of our vessels.
(3) Adjusted Net Income and Adjusted Earnings
per Common unit for the year ended December 31, 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 December
31, 2016 and 2015
Time charter and voyage revenues for the three
month period ended December 31, 2016 decreased by
$3.6 million or 6.8% to $49.7 million, as compared to
$53.3 million for the same period in 2015. The decrease was
mainly attributable to the decrease in TCE to $16,954 per day for
the three month period ended December 31, 2016, from $18,223
per day for the three month period ended December 31, 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.
EBITDA for the three months ended
December 31, 2016 was negatively affected by the accounting
effect of a $10.0 million impairment loss on the sale of the Navios
Apollon. Excluding this item, Adjusted EBITDA decreased by
$2.1 million to $33.6 million for the three month period
ended December 31, 2016, as compared to $35.7 million for the
same period in 2015. The decrease in Adjusted EBITDA was primarily
due to a: (i) $3.6 million decrease in revenue; (ii) $2.7 million
increase in general and administrative expenses; and (iii) $0.4
million increase in management fees. The above decrease was
partially mitigated by a: (i) $0.1 million decrease in
time and voyage charter expenses; (ii) $1.7 million increase in
other income; and (iii) $2.9 million decrease in other
expenses.
The reserve for estimated maintenance and
replacement capital expenditures for the three month periods ended
December 31, 2016 and 2015 were $3.0 million and $3.6 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 December 31, 2016 of
$24.0 million, compared to $25.2 million for the three
month period ended December 31, 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
December 31, 2016 was negatively affected by the accounting
effect of a $10.0 million impairment loss for the Navios Apollon.
Excluding this item, Adjusted net income for the three months ended
December 31, 2016 amounted to $7.9 million compared to
$7.8 million for the three months ended December 31,
2015. The increase in Adjusted net income of $0.1 million was due
to a: (i) $2.2 million decrease in depreciation and amortization
expense; (ii) $0.1 million decrease in interest expenses and
finance cost, net; and (iii) $0.1 million increase in interest
income. The above increase was partially mitigated by a: (i) $2.1
million decrease in adjusted EBITDA; and (ii) $0.2 million increase
in direct vessel expenses, comprising of the amortization of dry
dock and special survey costs.
Year ended December 31, 2016 and
2015
Time charter and voyage revenues for the year
ended December 31, 2016 decreased by $33.2 million or
14.8% to $190.5 million, as compared to $223.7 million
for the same period in 2015. The decrease was mainly attributable
to the decrease in TCE to $16,364 per day for the year ended
December 31, 2016, from $19,739 per day for the year ended
December 31, 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 11,296 days for the year ended December 31,
2016, as compared to 11,051 days for the year ended
December 31, 2015.
EBITDA for the year ended December 31, 2016
was negatively affected by the accounting effect of a $27.2 million
impairment loss on the sale of the MSC Cristina and the Navios
Apollon and a $19.4 million loss on the sale of the HMM securities.
Excluding these items, Adjusted EBITDA decreased by
$29.7 million to $123.5 million for the year ended
December 31, 2016, as compared to $153.3 million for the
same period in 2015. The decrease in Adjusted EBITDA was primarily
due to a: (i) $33.2 million decrease in revenue; (ii)
$2.7 million increase in management fees due to the increased
number of vessels and the increased daily management fee;
(iii) $4.4 million increase in general and administrative
expenses; and (iv) $0.3 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) $9.3 million increase in other income.
The reserve for estimated maintenance and
replacement capital expenditures for the years ended
December 31, 2016 and 2015 were $11.9 million and $13.8
million, respectively (please see Reconciliation of Non-GAAP
Financial Measures in Exhibit 3).
Navios Partners generated an operating surplus
for the year ended December 31, 2016 of $85.0 million,
compared to $112.7 million for the year ended
December 31, 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 year ended December 31, 2016
was negatively affected by the accounting effect of a $27.2 million
impairment loss on the sale of the MSC Cristina and the Navios
Apollon, a $19.4 million loss on the sale of the HMM securities 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 year ended December 31, 2016
amounted to $14.6 million compared to $41.8 million for the
year ended December 31, 2015. The decrease in Adjusted net
income of $27.2 million was due to a: (i) $29.7 million decrease in
adjusted EBITDA; and (ii) $2.3 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)
$4.0 million decrease in depreciation and amortization; (ii) $0.5
decrease in interest expense and finance cost, net and (iii) $0.3
million increase in interest income.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
months and year ended December 31, 2016 and 2015.
|
|
Three Month Period
Ended December 31, 2016 (unaudited) |
|
|
Three Month Period
Ended December 31, 2015 (unaudited) |
|
|
Year Ended December 31, 2016 (unaudited) |
|
|
Year Ended December 31, 2015 (unaudited) |
|
Available Days(1) |
|
|
2,854 |
|
|
|
|
2,852 |
|
|
|
|
11,296 |
|
|
|
|
11,051 |
|
|
Operating Days(2) |
|
|
2,848 |
|
|
|
|
2,839 |
|
|
|
|
11,279 |
|
|
|
|
11,029 |
|
|
Fleet
Utilization(3) |
|
|
99.8 |
% |
|
|
|
99.5 |
% |
|
|
|
99.8 |
% |
|
|
|
99.8 |
% |
|
Time Charter Equivalent
(per day) (4) |
|
$ |
16,954 |
|
|
|
$ |
18,223 |
|
|
|
$ |
16,364 |
|
|
|
$ |
19,739 |
|
|
Vessels operating at
period end |
|
|
32 |
|
|
|
|
31 |
|
|
|
|
32 |
|
|
|
|
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
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. |
|
|
|
Conference Call Details:
Navios Partners' management will host a
conference call today, Tuesday, February 14, 2017 to discuss the
results for the fourth quarter and year ended December 31,
2016.
Call Date/Time: Tuesday, February 14, 2017 at 8:30 am ET Call
Title: Navios Partners Q4 2016 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 5693 1496The 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: 5693 1496
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.
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.
|
EXHIBIT 1 |
NAVIOS MARITIME PARTNERS L.P. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Expressed in thousands of U.S. Dollars except unit
data) |
|
|
|
|
|
|
December 31,2016(unaudited) |
|
December 31,2015(unaudited) |
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash
equivalents |
$ |
17,360 |
|
$ |
26,750 |
Restricted cash |
|
7,728 |
|
|
7,789 |
Accounts receivable,
net |
|
10,022 |
|
|
3,999 |
Amounts due from
related parties |
|
19,639 |
|
|
— |
Prepaid expenses and
other current assets |
|
1,600 |
|
|
1,297 |
Total current
assets |
|
56,349 |
|
|
39,835 |
Vessels, net |
|
1,037,206 |
|
|
1,230,049 |
Vessel held for
sale |
|
125,000 |
|
|
— |
Deferred drydock and
special survey costs, net and other long-term assets |
|
21,282 |
|
|
22,232 |
Investment in
affiliates |
|
1,257 |
|
|
1,315 |
Loans receivable from
affiliates |
|
2,422 |
|
|
1,521 |
Intangible assets |
|
18,952 |
|
|
55,339 |
Notes receivable |
|
6,112 |
|
|
— |
Total
non-current assets |
|
1,212,231 |
|
|
1,310,456 |
Total
assets |
$ |
1,268,580 |
|
$ |
1,350,291 |
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
Current
liabilities |
|
|
|
Accounts payable |
$ |
3,276 |
|
$ |
2,706 |
Accrued expenses |
|
4,445 |
|
|
2,516 |
Deferred revenue |
|
17,198 |
|
|
4,290 |
Current portion of
long-term debt, net |
|
74,031 |
|
|
23,336 |
Amounts due to related
parties |
|
— |
|
|
8,680 |
Total current
liabilities |
|
98,950 |
|
|
41,528 |
Long-term debt,
net |
|
449,745 |
|
|
574,742 |
Amounts due to related
parties |
|
11,105 |
|
|
— |
Deferred revenue |
|
28,571 |
|
|
1,806 |
Total
non-current liabilities |
|
489,421 |
|
|
576,548 |
Total
liabilities |
|
588,371 |
|
|
618,076 |
Commitments and
contingencies |
|
— |
|
|
— |
Partners’
capital: |
|
|
|
Common Unitholders (83,323,911 and 83,079,710 units issued and
outstanding at December 31, 2016 and December 31, 2015,
respectively) |
|
677,081 |
|
|
728,046 |
General Partner (1,700,493 and 1,695,509 units issued and
outstanding at December 31, 2016 and December 31, 2015,
respectively |
|
3,128 |
|
|
4,169 |
Total partners’
capital |
|
680,209 |
|
|
732,215 |
Total
liabilities and partners’ capital |
$ |
1,268,580 |
|
$ |
1,350,291 |
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS L.P. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Expressed in thousands of U.S. Dollars except unit
and per unit data) |
|
|
|
|
|
Three MonthPeriod EndedDecember 31, 2016(unaudited) |
|
|
Three MonthPeriod EndedDecember 31, 2015(unaudited) |
|
|
Year EndedDecember 31, 2016(unaudited) |
|
|
|
Year EndedDecember 31, 2015(unaudited) |
|
|
|
Time charter and voyage
revenues |
|
|
|
$ |
49,665 |
|
|
|
$ |
53,314 |
|
|
|
$ |
190,524 |
|
|
|
|
$ |
223,676 |
|
|
|
Time charter and voyage
expenses |
|
|
|
|
(1,283 |
) |
|
|
|
(1,343 |
) |
|
|
|
(5,673 |
) |
|
|
|
|
(7,199 |
) |
|
|
Direct vessel
expenses |
|
|
|
|
(1,710 |
) |
|
|
|
(1,472 |
) |
|
|
|
(6,381 |
) |
|
|
|
|
(4,043 |
) |
|
|
Management fees
(entirely through related parties transactions) |
|
|
|
|
(14,890 |
) |
|
|
|
(14,481 |
) |
|
|
|
(59,209 |
) |
|
|
|
|
(56,504 |
) |
|
|
General and
administrative expenses |
|
|
|
|
(4,885 |
) |
|
|
|
(2,207 |
) |
|
|
|
(12,351 |
) |
|
|
|
|
(7,931 |
) |
|
|
Depreciation and
amortization |
|
|
|
|
(16,615 |
) |
|
|
|
(18,805 |
) |
|
|
|
(92,370 |
) |
|
|
|
|
(75,933 |
) |
|
|
Vessel impairment
losses |
|
|
|
|
(10,008 |
) |
|
|
|
— |
|
|
|
|
(27,201 |
) |
|
|
|
|
— |
|
|
|
Loss on sale of
securities |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(19,435 |
) |
|
|
|
|
— |
|
|
|
Interest expense and
finance cost, net |
|
|
|
|
(7,606 |
) |
|
|
|
(7,717 |
) |
|
|
|
(31,247 |
) |
|
|
|
|
(31,720 |
) |
|
|
Interest income |
|
|
|
|
201 |
|
|
|
|
69 |
|
|
|
|
541 |
|
|
|
|
|
222 |
|
|
|
Other income |
|
|
|
|
5,258 |
|
|
|
|
3,529 |
|
|
|
|
14,523 |
|
|
|
|
|
5,232 |
|
|
|
Other expense |
|
|
|
|
(215 |
) |
|
|
|
(3,080 |
) |
|
|
|
(4,270 |
) |
|
|
|
|
(3,995 |
) |
|
|
Net (loss)/
income |
|
|
|
$ |
(2,088 |
) |
|
|
$ |
7,807 |
|
|
|
$ |
(52,549 |
) |
|
|
|
$ |
41,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit:
|
Three MonthPeriod
EndedDecember 31, 2016(unaudited) |
|
|
Three MonthPeriod EndedDecember 31, 2015(unaudited) |
|
|
Year EndedDecember 31, 2016 (unaudited) |
|
|
Year EndedDecember 31, 2015
(unaudited) |
|
Earnings per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit (basic and
diluted) |
$ |
(0.02 |
) |
|
|
$ |
0.09 |
|
|
$ |
(0.62 |
) |
|
|
$ |
0.48 |
|
NAVIOS MARITIME PARTNERS L.P. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Expressed in thousands of U.S. Dollars) |
|
|
Year Ended December 31,
2016(unaudited) |
|
Year Ended
December 31, 2015
(unaudited) |
OPERATING
ACTIVITIES |
|
|
|
|
|
Net (loss)/ income |
$ |
(52,549 |
) |
|
$ |
41,805 |
|
Adjustments to
reconcile net (loss)/ income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
92,370 |
|
|
|
75,933 |
|
Vessel impairment
losses |
|
27,201 |
|
|
|
— |
|
Loss on sale of
securities |
|
19,435 |
|
|
|
— |
|
Gain on debt
prepayment |
|
(2,140 |
) |
|
|
— |
|
Non cash accrued
interest income and amortization of deferred revenue |
|
(5,717 |
) |
|
|
— |
|
Amortization and
write-off of deferred financing cost and discount |
|
4,003 |
|
|
|
3,727 |
|
Amortization of
deferred drydock and special survey costs |
|
6,381 |
|
|
|
4,043 |
|
Equity in earnings of
affiliates |
|
59 |
|
|
|
(94 |
) |
Equity compensation
expense |
|
93 |
|
|
|
— |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
Net (increase)/
decrease in restricted cash |
|
(5,286 |
) |
|
|
(426 |
) |
(Increase)/ decrease in
accounts receivable |
|
(6,023 |
) |
|
|
9,279 |
|
(Increase)/ decrease in
prepaid expenses and other current assets |
|
(303 |
) |
|
|
173 |
|
Decrease in other
long-term assets |
|
61 |
|
|
|
20 |
|
Increase/ (decrease) in
accounts payable |
|
570 |
|
|
|
(1,118 |
) |
Increase/ (decrease) in
accrued expenses |
|
1,929 |
|
|
|
(1,107 |
) |
(Decrease)/ increase in
deferred revenue |
|
(1,000 |
) |
|
|
1,786 |
|
Increase in amounts due
to related parties |
|
3,025 |
|
|
|
6,800 |
|
Increase in amounts due
from related parties |
|
(20,089 |
) |
|
|
— |
|
Payments for dry dock
and special survey costs |
|
(5,493 |
) |
|
|
(17,545 |
) |
Net cash
provided by operating activities |
|
56,527 |
|
|
|
123,276 |
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Acquisition of
vessels |
|
(15,341 |
) |
|
|
(147,830 |
) |
Investment in
affiliates |
|
— |
|
|
|
(700 |
) |
Loans receivable from
affiliates |
|
(450 |
) |
|
|
(771 |
) |
Proceeds from sale of
securities |
|
20,842 |
|
|
|
— |
|
Net cash
provided by / (used in) investing activities |
|
5,051 |
|
|
|
(149,301 |
) |
FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Cash distributions
paid |
|
— |
|
|
|
(132,306 |
) |
Net proceeds from
issuance of general partner units |
|
10 |
|
|
|
1,528 |
|
Proceeds from issuance
of common units, net of offering costs |
|
440 |
|
|
|
72,090 |
|
Proceeds from long-term
debt |
|
29,000 |
|
|
|
79,819 |
|
Net decrease/
(increase) in restricted cash |
|
5,347 |
|
|
|
(6,409 |
) |
Repayment of long-term
debt and payment of principal |
|
(104,624 |
) |
|
|
(60,696 |
) |
Deferred financing
cost |
|
(1,141 |
) |
|
|
(746 |
) |
Net cash used
in financing activities |
|
(70,968 |
) |
|
|
(46,720 |
) |
Decrease in
cash and cash equivalents |
|
(9,390 |
) |
|
|
(72,745 |
) |
Cash and cash
equivalents, beginning of period |
|
26,750 |
|
|
|
99,495 |
|
Cash
and cash equivalents, end of period |
$ |
17,360 |
|
|
$ |
26,750 |
|
|
|
|
|
|
|
|
|
EXHIBIT 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity |
|
Owned Drybulk Vessels |
|
Type |
|
Built |
|
(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 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 |
|
Navios Beaufiks |
|
Capesize |
|
2004 |
|
180,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Container
Vessels |
|
|
|
|
|
Capacity |
|
|
|
Type |
|
Built |
|
(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(2) |
|
Container |
|
2011 |
|
13,100 |
|
|
|
|
|
|
|
|
|
(1) The vessel is expected to be delivered by April
2017. |
|
(2) The vessel has been classified as held for sale and
was sold on January 12, 2017. |
|
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. EBITDA and 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 and write-off of deferred finance charges
and other related expenses, (v) provision for losses on accounts
receivable, (vi) equity in earnings of affiliates, net of dividends
received, (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 and (xii)
equity compensation expense. 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 EndedDecember 31, 2016 ($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedDecember 31, 2015 ($
‘000)(unaudited) |
|
|
Year EndedDecember 31, 2016 ($
‘000)(unaudited) |
|
|
Year EndedDecember 31, 2015($
‘000)(unaudited) |
Net cash
provided by operating activities |
|
$ |
21,902 |
|
|
|
$ |
25,268 |
|
|
|
$ |
56,527 |
|
|
|
$ |
123,276 |
|
Net
decrease/ (increase) in operating assets |
|
|
3,269 |
|
|
|
|
(6,745 |
) |
|
|
|
37,133 |
|
|
|
|
8,499 |
|
Net
(decrease)/ increase in operating liabilities |
|
|
(3,085 |
) |
|
|
|
10,298 |
|
|
|
|
(4,524 |
) |
|
|
|
(6,361 |
) |
Net
interest cost |
|
|
7,405 |
|
|
|
|
7,648 |
|
|
|
|
30,706 |
|
|
|
|
31,498 |
|
Amortization and write-off of deferred financing cost |
|
|
(986 |
) |
|
|
|
(786 |
) |
|
|
|
(4,003 |
) |
|
|
|
(3,727 |
) |
Vessel
impairment losses |
|
|
(10,008 |
) |
|
|
|
— |
|
|
|
|
(27,201 |
) |
|
|
|
— |
|
Loss on
sale of securities |
|
|
— |
|
|
|
|
— |
|
|
|
|
(19,435 |
) |
|
|
|
— |
|
Gain on
debt prepayment |
|
|
2,140 |
|
|
|
|
— |
|
|
|
|
2,140 |
|
|
|
|
— |
|
Equity
compensation expense |
|
|
(93 |
) |
|
|
|
— |
|
|
|
|
(93 |
) |
|
|
|
— |
|
Non cash
accrued interest income and amortization of deferred revenue |
|
|
3,151 |
|
|
|
|
— |
|
|
|
|
5,717 |
|
|
|
|
— |
|
Equity in
earnings of affiliates |
|
|
(53 |
) |
|
|
|
49 |
|
|
|
|
(59 |
) |
|
|
|
94 |
|
EBITDA(1) |
|
$ |
23,642 |
|
|
|
$ |
35,732 |
|
|
|
$ |
76,908 |
|
|
|
$ |
153,279 |
|
Vessel
impairment losses |
|
|
10,008 |
|
|
|
|
— |
|
|
|
|
27,201 |
|
|
|
|
— |
|
Loss on
sale of securities |
|
|
— |
|
|
|
|
— |
|
|
|
|
19,435 |
|
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
33,650 |
|
|
|
$ |
35,732 |
|
|
|
$ |
123,544 |
|
|
|
$ |
153,279 |
|
Cash
interest income |
|
|
1 |
|
|
|
|
4 |
|
|
|
|
7 |
|
|
|
|
51 |
|
Cash
interest paid |
|
|
(6,627 |
) |
|
|
|
(6,940 |
) |
|
|
|
(26,694 |
) |
|
|
|
(26,787 |
) |
Maintenance
and replacement capital expenditures |
|
|
(2,975 |
) |
|
|
|
(3,621 |
) |
|
|
|
(11,899 |
) |
|
|
|
(13,811 |
) |
Operating Surplus |
|
$ |
24,049 |
|
|
|
$ |
25,175 |
|
|
|
$ |
84,958 |
|
|
|
$ |
112,732 |
|
Cash
distribution paid relating to the first three quarters of the
year |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(94,208 |
) |
Cash
reserves |
|
|
(24,049 |
) |
|
|
|
(25,175 |
) |
|
|
|
(84,958 |
) |
|
|
|
(18,524 |
) |
Available cash for distribution |
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod EndedDecember 31, 2016 ($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedDecember 31, 2015 ($
‘000)(unaudited) |
|
|
Year EndedDecember 31, 2016 ($
‘000)(unaudited) |
|
|
Year EndedDecember 31, 2015 ($
‘000)(unaudited) |
|
Net cash provided by operating activities |
|
$ |
21,902 |
|
|
|
$ |
25,268 |
|
|
|
$ |
56,527 |
|
|
|
$ |
123,276 |
|
|
Net cash (used in)/ provided by investing activities |
|
$ |
(15,341 |
) |
|
|
$ |
(75 |
) |
|
|
$ |
5,051 |
|
|
|
$ |
(149,301 |
) |
|
Net cash used in financing activities |
|
$ |
(29,780 |
) |
|
|
$ |
(23,584 |
) |
|
|
$ |
(70,968 |
) |
|
|
$ |
(46,720 |
) |
|
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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