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
second quarter and six months ended June 30, 2017.
Angeliki Frangou, Chairman and Chief Executive
Officer, stated, “For the second quarter of 2017, Navios Partners
reported Consolidated Revenue of $50.0 million and Consolidated Net
Income of $4.1 million. In addition, Adjusted EBITDA was $32.2
million.”
Angeliki Frangou continued, “Navios Partners is
a unique platform in the dry industry, with about $700 million in
contracted revenue, 84% of which is through charters longer than
three years, and no significant near term debt maturities. As
a result, Navios Partners is renewing and expanding its drybulk
fleet with younger and larger vessels. To date, seven vessels were
agreed to be acquired with an average age of 7.4 years and one
17-year old vessel was sold. Thus, the average age of Navios
Partners’ drybulk fleet improved by 9% -- from 10.4 years to 9.5
years, and the overall size increased by 33% (almost 1 million
deadweight tons). In addition, we participated in the launch
of Navios Maritime Containers Inc., a new vehicle dedicated to
capitalizing on the opportunity within the distressed container
sector by investing $30 million for about a 60% ownership interest
plus warrants for an additional 6.8%.”
Navios Partners
Acquisition of Vessels
In July 2017, Navios Partners agreed to acquire
from an unrelated third party one 2010 Hyundai-built Capesize
vessel of approximately 179,314 dwt, for a purchase price of $26.7
million plus the issuance of 1.0 million common units at a price of
$2.1 per unit. The vessel is expected to be delivered to Navios
Partners' owned fleet in the third quarter of 2017.
In July 2017, Navios Partners agreed to acquire
from a related party one 2009 Tsuneishi Zhoushan-built Handymax
vessel of approximately 58,058 dwt, for a total purchase price of
$13.8 million. The vessel is expected to be delivered to Navios
Partners' owned fleet in the third quarter of 2017. Both
acquisitions are subject to signing of definitive
documentation.
Debt Developments
In June 2017, Navios Partners agreed to an
additional tranche to its existing credit facility for an amount of
$7.0 million with a commercial bank in order to finance the
acquisition of the Navios Prosperity I. The facility matures in the
second quarter of 2020 and bears interest at LIBOR plus 310 bps per
annum.
In June 2017, Navios Partners entered into a new
$32.0 million credit facility with a commercial bank in order to
finance the acquisition of two Capesize vessels, the Navios Ace and
the Navios Sol. The facility matures in the second quarter of 2021
and bears interest at LIBOR plus 300 bps per annum.
Fleet developments
As part of its strategic renewal program of its
drybulk fleet, during 2017 Navios Partners has acquired seven, and
sold one, drybulk vessels. The average age of the vessels acquired
is 7.4 years.
Vessel |
|
Type |
|
Built |
|
DWT |
|
Delivery |
Navios Ace |
|
Capesize |
|
2011 |
|
179,016 |
|
Delivered |
Navios Sol |
|
Capesize |
|
2009 |
|
180,274 |
|
Delivered |
Navios TBN I |
|
Capesize |
|
2010 |
|
178,132 |
|
Q3
2017 |
Navios Prosperity I |
|
Panamax |
|
2007 |
|
75,527 |
|
Delivered |
Navios Libertas |
|
Panamax |
|
2007 |
|
75,511 |
|
Delivered |
Navios TBN II* |
|
Capesize |
|
2010 |
|
179,314 |
|
Q3
2017 |
Navios TBN III* |
|
Handymax |
|
2009 |
|
58,058 |
|
Q3 2017 |
Total |
|
|
|
|
|
925,832 |
|
|
* Subject to signing of definitive
documentation.
Following the above fleet developments, the
average age of the drybulk fleet reduced by approximately 9%, based
on dwt basis. Additionally, Navios Partners increased the total
capacity of the drybulk fleet by approximately 0.9 million
dwt.
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 2.4 years. Navios Partners has currently
contracted out 87.5% of its available days for 2017, 34.3% for 2018
and 16.3% for 2019, including index-linked charters, respectively,
expecting to generate revenues of approximately $147.5 million,
$83.9 million and $54.7 million, respectively. The average expected
daily charter-out rate for the fleet is $15,664, $25,378 and
$24,972 for 2017, 2018 and 2019, respectively.
Navios Maritime Containers
Initial Private Placement
On June 8, 2017, Navios Maritime Containers Inc.
(“Navios Containers”) closed its private placement of 10,057,645
shares at a subscription price of $5.00 per share, resulting in
gross proceeds of $50.3 million. Navios Partners invested $30.0
million and received 59.7% of the equity of Navios Containers.
Navios Partners also received warrants, with a five-year term, for
6.8% of the equity.
Navios Containers registered its shares on the
Norwegian Over-The-Counter Market (N-OTC) on June 12, 2017 under
the ticker “NMCI”.
Fleet Acquisition
Navios Containers used the proceeds of the
private placement to acquire five 4,250 TEU vessels from Navios
Partners for a total purchase price of $64.0 million. The payment
terms included a $24.0 million credit by Navios Partners for a
period of up to 90 days from the purchase date at LIBOR plus 375
bps, of which $14.0 million remained outstanding as of June 30,
2017. These vessels were previously acquired by Navios Partners
from Rickmers Maritime Trust Pte. (“Rickmers Trust”) and are
employed on charters with a net daily charter rate of $26,850 which
expire in 2018 and early 2019.
In addition, Navios Containers acquired all the
rights under the acquisition agreements entered into between Navios
Partners and Rickmers Trust to purchase the remaining nine vessels
in the original 14-vessel container fleet (the “Fleet”) for a
purchase price of $54.0 million plus certain delivery and other
operating costs. As of July 25, 2017, five of these vessels had
been delivered to Navios Containers and the remaining four are
expected to be delivered during August 2017.
Credit Facility
On June 29, 2017, Navios Containers entered into
a loan facility for an amount of $40.0 million with a commercial
bank in order to finance the acquisition of seven container vessels
of the Fleet (including the original five vessels). The facility is
repayable in six consecutive quarterly instalments of $3.8 million
each, plus a balloon payment on the last repayment date. The
facility matures in December 2018 and bears interest at LIBOR plus
385 bps per annum. As of June 30, 2017, the outstanding loan amount
under this facility was $34.3 million and an additional amount of
$3.2 million was drawn in July 2017. The Company has also agreed to
a $21.0 million credit facility with the same commercial bank for
financing of the remaining seven vessels of the Fleet, subject to
signing of definitive documentation.
Fleet Development
Navios Containers currently controls a fleet of
14 vessels, (of which four vessels will be delivered in early
August 2017) totaling 57,100 TEU with an average age of 9.7 years.
As of July 25, 2017, Navios Containers has chartered-out 46.7% of
available days for the remaining six months of 2017, expecting to
generate revenues of approximately $26.0 million. The average
contractual daily charter-out rate for the fleet during this period
is expected to be $23,780.
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 six month
periods ended June 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.
|
|
|
|
|
|
|
|
|
|
|
Three Month |
|
Three Month |
|
|
Six Month |
|
|
Six Month |
|
Period Ended |
|
Period Ended |
|
|
Period Ended |
|
|
Period Ended |
|
June 30,2017 |
|
June 30,2016 |
|
|
June 30,2017 |
|
|
June 30,2016 |
(in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
$ |
50,018 |
|
$ |
44,877 |
|
|
$ |
92,429 |
|
|
$ |
90,518 |
|
Net income/
(loss) |
$ |
4,090 |
|
$ |
(16,807 |
) |
|
$ |
(1,563 |
) |
|
$ |
(16,598 |
) |
Adjusted Net
Income |
$ |
4,560(1) |
|
$ |
386(4) |
|
$ |
5,280(2) |
|
$ |
595(4) |
EBITDA |
$ |
31,745 |
|
$ |
11,804 |
|
|
$ |
54,399 |
|
|
$ |
39,875 |
|
Adjusted EBITDA |
$ |
32,214(1) |
|
$ |
28,997(4) |
|
$ |
58,087(3) |
|
$ |
57,068(4) |
Earnings per Common
unit (basic and diluted) |
$ |
0.03 |
|
$ |
(0.20 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.20 |
) |
Adjusted Earnings per
Common unit (basic and diluted) |
$ |
0.03(1) |
|
$ |
— |
|
|
$ |
0.04(2) |
|
$ |
— |
|
Operating Surplus |
$ |
22,350 |
|
$ |
19,434 |
|
|
$ |
39,917 |
|
|
$ |
37,718 |
|
Maintenance and
Replacement Capital expenditure reserve |
$ |
3,476 |
|
$ |
2,975 |
|
|
$ |
6,740 |
|
|
$ |
5,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings
per Common unit for the three months ended June 30, 2017 have
been adjusted to exclude a $0.5 million equity compensation
expense.
(2) Adjusted Net Income and Adjusted Earnings per Common unit
for the six months ended June 30, 2017 have been adjusted to
exclude a $3.2 million write-off of deferred finance fees and
discount related to the refinancing of the Term Loan B Facility,
$1.5 million allowance for doubtful accounts, $1.3 million
loss related to the disposal of one of our vessels and a $0.9
million equity compensation expense.
(3) Adjusted EBITDA for the six months ended June 30,
2017 has been adjusted to exclude a $1.5
million allowance for doubtful accounts, $1.3 million loss
related to the disposal of one of our vessels and a $0.9 million
equity compensation expense.
(4) Adjusted Net Income and Adjusted EBITDA for each of the
three and six months ended June 30, 2016 have been adjusted to
exclude a $17.2 million impairment loss on one of our vessels.
Three month periods ended June
30, 2017 and 2016
Time charter and voyage revenues from Navios
Partners for the three month period ended June 30, 2017
increased by $2.0 million or 4.5% to $46.9 million, as
compared to $44.9 million for the same period in 2016. The
increase was mainly attributable to the increase in TCE to $16,498
per day for the three month period ended June 30, 2017, from
$16,005 per day for the three month period ended June 30,
2016, due to the increase in the freight market in the second
quarter of 2017, as compared to the same period in 2016. The
available days of the fleet increased to 2,844 days for the
three month period ended June 30, 2017, as compared to
2,821 days for the three month period ended June 30,
2016.
Time charter and voyage revenues from Navios
Containers for the period from April 28, 2017 (date of inception)
to June 30, 2017 amounted to $3.1 million. Available days of the
fleet were 115 days for the period from April 28, 2017 (date of
inception) to June 30, 2017 and TCE for the period amounted to
$26,968.
EBITDA of Navios Partners for the three months
ended June 30, 2017 was negatively affected by the accounting
effect of a $0.5 million equity compensation expense. Excluding
this item, Adjusted EBITDA increased by $1.3 million to $30.3
million for the three months ended June 30, 2017, as compared to
$29.0 million for the same period in 2016. The increase in Adjusted
EBITDA was primarily due to a: (i) $2.0 million increase in
revenue; and (ii) $2.0 million decrease in time charter and voyage
expenses. The above increase was partially mitigated by a: (i) $1.7
million increase in general and administrative expenses; (ii) $0.8
million increase in other expenses; and (iii) $0.2 million decrease
in other income.
EBITDA of Navios Containers was $2.3 million for
the period from April 28, 2017 (date of inception) to June 30,
2017.
The reserve for estimated maintenance and
replacement capital expenditures for the three month periods ended
June 30, 2017 and 2016 was $3.5 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 June 30, 2017 of
$22.4 million, compared to $19.4 million for the three
month period ended June 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
months ended June 30, 2017 was negatively affected by the
accounting effect of a $0.5 million equity compensation expense.
Excluding this item, Adjusted Net Income for the three months ended
June 30, 2017 amounted to $4.1 million compared to
$0.4 million for the three months ended June 30, 2016.
The increase in Adjusted Net Income of $3.7 million was due to a:
(i) $1.3 million increase in adjusted EBITDA; (ii) $1.4 million
decrease in depreciation and amortization expense; (iii) $0.8
million increase in interest income; and (iv) $0.2 million decrease
in interest expense and finance cost, net. The above increase was
partially mitigated by a $0.1 million increase in direct vessel
expenses, comprising of the amortization of dry dock and special
survey costs.
Six month periods ended June 30, 2017
and 2016
Time charter and voyage revenues from Navios
Partners for the six month period ended June 30, 2017
decreased by $1.2 million or 1.3% to $89.3 million, as
compared to $90.5 million for the same period in 2016. The
decrease was mainly attributable to the decrease in TCE to $15,593
per day for the six month period ended June 30, 2017, from
$15,764 per day for the six month period ended June 30, 2016,
mainly due to the sale of the MSC Cristina in January 2017. The
available days of the fleet decreased to 5,639 days for the
six month period ended June 30, 2017, as compared to
5,642 days for the six month period ended June 30,
2016.
Time charter and voyage revenues from Navios
Containers for the period from April 28, 2017 (date of inception)
to June 30, 2017 amounted to $3.1 million. Available days of the
fleet were 115 days for the period from April 28, 2017 (date of
inception) to June 30, 2017 and TCE for the period amounted to
$26,968.
EBITDA of Navios Partners for the six months
ended June 30, 2017 was negatively affected by the accounting
effect of a: (i) $1.5 million allowance for doubtful accounts; (ii)
$1.3 million loss related to the disposal of the MSC Cristina and;
(iii) $0.9 million equity compensation expense. Excluding these
items, Adjusted EBITDA decreased by $0.9 million to $56.2 million
for the six months ended June 30, 2017, as compared to $57.1
million for the same period in 2016. The decrease in Adjusted
EBITDA was primarily due to a: (i) $1.9 million increase in general
and administrative expenses; (ii) $1.2 million decrease in revenue;
(iii) $0.4 million increase in other expenses; and (iv) $0.2
million decrease in other income. The above decrease was partially
mitigated by a: (i) $2.4 million decrease in time charter and
voyage expenses; and (ii) 0.3 million decrease in management
fees.
The reserve for estimated maintenance and
replacement capital expenditures for the six month periods ended
June 30, 2017 and 2016 were $6.7 million and $5.9 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated an operating surplus
for the six month period ended June 30, 2017 of
$39.9 million, compared to $37.7 million for the six
month period ended June 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 six months
ended June 30, 2017 was negatively affected by the accounting
effect of a: (i) $3.2 million write-off of deferred finance fees
and discount related to the refinancing of the Term Loan B
Facility; (ii) $1.5 million allowance for doubtful accounts;
(iii) $1.3 million loss related to the disposal of the MSC
Cristina; and (iv) $0.9 million equity compensation expense.
Excluding these items, Adjusted Net Income for the six months ended
June 30, 2017 amounted to $4.8 million compared to
$0.6 million for the six months ended June 30, 2016. The
increase in Adjusted Net Income of $4.2 million was due to a: (i)
$3.5 million decrease in depreciation and amortization expense;
(ii) $1.2 million increase in interest income; and (iii) $0.7
million decrease in interest expense and finance cost, net. The
above increase was partially mitigated by a: (i) $0.9 million
decrease in Adjusted EBITDA; and (ii) a $0.3 million increase in
direct vessel expenses, comprising of the amortization of dry dock
and special survey costs.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance (including
115 operating days of Navios Containers) for the three and six
month periods ended June 30, 2017 and 2016.
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|
|
|
|
|
|
|
|
|
Three Month Period
Ended June 30, 2017 (unaudited) |
|
|
Three Month Period
Ended June 30, 2016 (unaudited) |
|
|
Six
Month Period Ended June 30, 2017 (unaudited) |
|
|
Six
Month Period Ended June 30, 2016 (unaudited) |
|
Available Days(1) |
|
|
2,959 |
|
|
|
2,821 |
|
|
|
5,754 |
|
|
|
5,642 |
|
Operating Days(2) |
|
|
2,936 |
|
|
|
2,805 |
|
|
|
5,725 |
|
|
|
5,625 |
|
Fleet
Utilization(3) |
|
|
99.20 |
% |
|
|
99.85 |
% |
|
|
99.51 |
% |
|
|
99.91 |
% |
Time Charter Equivalent
(per day) |
|
$ |
16,905 |
|
|
$ |
16,005 |
|
|
$ |
15,820 |
|
|
$ |
15,764 |
|
Vessels operating at
period end |
|
|
37 |
|
|
|
31 |
|
|
|
37 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Available days for the fleet represent total calendar days the
vessels were in Navios Partners’ and Navios
Containers’ 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’ and
Navios Containers’ 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. |
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|
Conference Call Details:
Navios Partners' management will host a
conference call today, Thursday, July 27, 2017 to discuss the
results for the second quarter and six months ended June 30,
2017.
Call Date/Time: Thursday, July 27, 2017 at 8:30 am ET Call
Title: Navios Partners Q2 2017 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 3482 6108
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: 3482 6108
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.
|
|
EXHIBIT 1 |
NAVIOS MARITIME PARTNERS L.P. |
SELECTED BALANCE SHEET DATA |
(Expressed in thousands of U.S. Dollars except unit
data) |
|
|
|
June 30, 2017
(unaudited) |
December 31,
2016 (unaudited) |
ASSETS |
|
|
Cash and cash
equivalents, including restricted cash |
$ |
86,048 |
$ |
25,088 |
Other current
assets |
|
48,046 |
|
31,261 |
Vessels, net |
|
1,083,638 |
|
1,037,206 |
Vessel held for
sale |
|
— |
|
125,000 |
Deposits for vessels
acquisitions |
|
9,904 |
|
— |
Other non-current
assets |
|
61,953 |
|
31,073 |
Intangible assets |
|
37,963 |
|
18,952 |
Total
assets |
$ |
1,327,552 |
$ |
1,268,580 |
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
Other current
liabilities |
$ |
32,469 |
$ |
24,919 |
Current portion of
long-term debt, net |
|
36,170 |
|
74,031 |
Long-term debt,
net |
|
438,847 |
|
449,745 |
Other non-current
liabilities |
|
22,569 |
|
39,676 |
Total partners’
capital |
|
797,497 |
|
680,209 |
Total
liabilities and partners’ capital |
$ |
1,327,552 |
$ |
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 June 30,
2017 (unaudited) |
|
Three Month
Period Ended June 30,
2016 (unaudited) |
|
Six Month
Period Ended June 30,
2017 (unaudited) |
|
Six Month
Period Ended June 30,
2016 (unaudited) |
Time
charter and voyage revenues |
$ |
50,018 |
|
|
$ |
44,877 |
|
|
$ |
92,429 |
|
|
$ |
90,518 |
|
Time
charter and voyage expenses |
|
— |
|
|
|
(1,962 |
) |
|
|
(1,413 |
) |
|
|
(3,811 |
) |
Direct
vessel expenses |
|
(1,631 |
) |
|
|
(1,526 |
) |
|
|
(3,333 |
) |
|
|
(2,990 |
) |
Management
fees (entirely through related parties transactions) |
|
(15,462 |
) |
|
|
(14,719 |
) |
|
|
(29,805 |
) |
|
|
(29,439 |
) |
General and
administrative expenses |
|
(4,865 |
) |
|
|
(2,611 |
) |
|
|
(8,077 |
) |
|
|
(5,099 |
) |
Depreciation and amortization |
|
(18,680 |
) |
|
|
(18,809 |
) |
|
|
(35,455 |
) |
|
|
(37,614 |
) |
Impairment
loss |
|
— |
|
|
|
(17,193 |
) |
|
|
— |
|
|
|
(17,193 |
) |
Interest
expense and finance cost, net |
|
(8,145 |
) |
|
|
(8,369 |
) |
|
|
(18,500 |
) |
|
|
(16,033 |
) |
Interest
income |
|
803 |
|
|
|
92 |
|
|
|
1,326 |
|
|
|
164 |
|
Other
income |
|
2,950 |
|
|
|
3,413 |
|
|
|
6,070 |
|
|
|
4,899 |
|
Other
expense |
|
(543 |
) |
|
|
— |
|
|
|
(4,450 |
) |
|
|
— |
|
Net
income/ (loss) |
$ |
4,445 |
|
|
$ |
(16,807 |
) |
|
$ |
(1,208 |
) |
|
$ |
(16,598 |
) |
Less: Net
income attributable to the noncontrolling interest |
$ |
(355 |
) |
|
$ |
— |
|
|
$ |
(355 |
) |
|
$ |
— |
|
Net
income/ (loss) attributable to Navios Partners unitholders
|
$ |
4,090 |
|
|
$ |
(16,807 |
) |
|
$ |
(1,563 |
) |
|
$ |
(16,598 |
) |
|
|
|
Three Month
Period Ended June 30,
2017 (unaudited) |
|
Three Month
Period Ended June 30,
2016 (unaudited) |
|
Six Month
Period Ended June 30,
2017 (unaudited) |
|
Six Month
Period Ended June 30,
2016 (unaudited) |
Earnings
per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unit
(basic and diluted) |
$ |
0.03 |
|
$ |
(0.20 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS L.P. |
Other Financial Information |
|
|
Six Month Period Ended June 30,
2017 ($’000) (Unaudited) |
|
Six Month Period Ended June 30,
2016 ($’000) (Unaudited) |
|
Net cash provided by
operating activities |
$ |
10,528 |
|
$ |
38,736 |
|
Net cash used in
investing activities |
|
(11,769 |
) |
|
(450 |
) |
Net cash provided by/
(used in) financing activities |
|
63,630 |
|
|
(39,709 |
) |
Increase/
(decrease) in cash and cash equivalents |
$ |
62,389 |
|
$ |
(1,423 |
) |
|
|
|
|
|
|
|
|
|
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 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 |
|
|
|
|
|
|
|
|
|
(1) The vessel was sold on April 21,
2017.
|
Vessels to be delivered |
|
Type |
|
Built |
|
|
Capacity(DWT) |
|
|
|
Delivery Date |
|
Navios TBN I |
|
Capesize |
|
2010 |
|
|
178,132 |
|
|
|
Q3
2017 |
|
Navios TBN II |
|
Capesize |
|
2010 |
|
|
179,314 |
|
|
|
Q3
2017 |
|
Navios TBN III |
|
Handymax |
|
2009 |
|
|
58,058 |
|
|
|
Q3
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Container Vessels |
|
Type |
|
Built |
|
|
Capacity(TEU) |
|
|
Hyundai Hong Kong |
|
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 loss and allowance for doubtful
accounts. 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 earnings of affiliates,
(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 EndedJune 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
|
|
Net cash
provided by operating activities |
|
$ |
12,265 |
|
|
|
$ |
15,206 |
|
|
|
$ |
10,528 |
|
|
|
$ |
38,736 |
|
|
|
|
Net
increase in operating assets |
|
|
13,731 |
|
|
|
|
816 |
|
|
|
|
23,322 |
|
|
|
|
2,863 |
|
|
|
|
Net
(decrease)/increase in operating liabilities |
|
|
(2,253 |
) |
|
|
|
5,959 |
|
|
|
|
7,364 |
|
|
|
|
1,660 |
|
|
|
|
Net
interest cost |
|
|
7,343 |
|
|
|
|
8,276 |
|
|
|
|
17,175 |
|
|
|
|
15,869 |
|
|
|
|
Amortization and write-off of deferred financing cost |
|
|
(1,605 |
) |
|
|
|
(1,249 |
) |
|
|
|
(6,159 |
) |
|
|
|
(2,085 |
) |
|
|
|
Non cash
accrued interest income and amortization of deferredrevenue |
|
|
3,118 |
|
|
|
|
— |
|
|
|
|
6,203 |
|
|
|
|
— |
|
|
|
|
Equity
compensation expense |
|
|
(469 |
) |
|
|
|
— |
|
|
|
|
(933 |
) |
|
|
|
— |
|
|
|
|
Impairment
loss |
|
|
— |
|
|
|
|
(17,193 |
) |
|
|
|
— |
|
|
|
|
(17,193 |
) |
|
|
|
Non cash
accrued interest income from receivable from affiliates
|
|
|
(7 |
) |
|
|
|
— |
|
|
|
|
73 |
|
|
|
|
— |
|
|
|
|
Allowance
for doubtful accounts |
|
|
— |
|
|
|
|
— |
|
|
|
|
(1,495 |
) |
|
|
|
— |
|
|
|
|
Loss on
vessel disposal |
|
|
— |
|
|
|
|
— |
|
|
|
|
(1,260 |
) |
|
|
|
— |
|
|
|
|
Noncontrolling interest |
|
|
(355 |
) |
|
|
|
— |
|
|
|
|
(355 |
) |
|
|
|
— |
|
|
|
|
Equity in
earnings of affiliates, net of dividends received |
|
|
(23 |
) |
|
|
|
(11 |
) |
|
|
|
(64 |
) |
|
|
|
25 |
|
|
|
|
EBITDA(1) |
|
$ |
31,745 |
|
|
|
$ |
11,804 |
|
|
|
$ |
54,399 |
|
|
|
$ |
39,875 |
|
|
|
|
Allowance
for doubtful accounts |
|
|
— |
|
|
|
|
— |
|
|
|
|
1,495 |
|
|
|
|
— |
|
|
|
|
Loss on
vessel disposal |
|
|
— |
|
|
|
|
— |
|
|
|
|
1,260 |
|
|
|
|
— |
|
|
|
|
Equity
compensation expense |
|
|
469 |
|
|
|
|
— |
|
|
|
|
933 |
|
|
|
|
— |
|
|
|
|
|
Impairment
loss |
|
|
— |
|
|
|
|
17,193 |
|
|
|
|
— |
|
|
|
|
17,193 |
|
|
|
|
|
Adjusted EBITDA |
|
$ |
32,214 |
|
|
|
$ |
28,997 |
|
|
|
$ |
58,087 |
|
|
|
$ |
57,068 |
|
|
|
|
|
Cash
interest income |
|
|
270 |
|
|
|
|
1 |
|
|
|
|
371 |
|
|
|
|
5 |
|
|
|
|
|
Cash
interest paid |
|
|
(6,658 |
) |
|
|
|
(6,589 |
) |
|
|
|
(11,801 |
) |
|
|
|
(13,406 |
) |
|
|
|
|
Maintenance
and replacement capital expenditures |
|
|
(3,476 |
) |
|
|
|
(2,975 |
) |
|
|
|
(6,740 |
) |
|
|
|
(5,949 |
) |
|
|
|
|
Operating Surplus |
|
$ |
22,350 |
|
|
|
$ |
19,434 |
|
|
|
$ |
39,917 |
|
|
|
$ |
37,718 |
|
|
|
|
Cash
reserves |
|
|
(22,350 |
) |
|
|
|
(19,434 |
) |
|
|
|
(39,917 |
) |
|
|
|
(37,718 |
) |
|
|
|
|
Available cash for distribution |
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
Three MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2016($
‘000)(unaudited) |
|
|
|
Net cash
provided by operating activities |
|
$ |
12,265 |
|
|
|
$ |
15,206 |
|
|
|
$ |
10,528 |
|
|
|
$ |
38,736 |
|
|
|
|
Net cash
used in investing activities |
|
$ |
(109,814 |
) |
|
|
$ |
— |
|
|
|
$ |
(11,769 |
) |
|
|
$ |
(450 |
) |
|
|
|
Net cash
provided by / (used in) financing activities |
|
$ |
65,649 |
|
|
|
$ |
(23,255 |
) |
|
|
$ |
63,630 |
|
|
|
$ |
(39,709 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Sep 2023 to Sep 2024