Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an
international owner and operator of dry cargo vessels, today
reported its financial results for the second quarter and six
months ended June 30, 2018.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “I am pleased with the results
for the second quarter, for which Navios Partners had $34.7 million
of adjusted EBITDA and reported $9.2 million of adjusted net
income. We declared a quarterly distribution of $0.02 per unit for
the second quarter, representing a current yield of approximately
4%.”
Angeliki Frangou continued, “Over the past two
years, we used excess cash flow from operations and financing
activities to renew and expand our fleet to 35 drybulk vessels.
We also leveraged historic weakness in the container sector
by establishing Navios Maritime Containers Inc., a growth vehicle
with 26 containerships. Having taken advantage of these
opportunities, we restored distributions to unitholders in the
first quarter of this year and are seeking to deleverage with
excess cash flow and the contemplated sale of our remaining
containerships. If and when these sales are completed, Navios
Partners will host the drybulk business and Navios Containers will
hold the container business, thereby simplifying our business
structure.”
Drybulk Fleet
- Agreement to acquire two vessels
In July 2018, Navios Partners agreed to acquire
the Navios Sphera, a 2016-built Panamax vessel of 84,872 dwt and
the Navios Mars, a 2016-built Capesize vessel of 181,259 dwt from
its affiliate, Navios Maritime Holdings Inc. for a purchase price
of $79.0 million. These vessels are time chartered out on
index-linked charters until January 2021 and February 2019,
respectively.
The acquisition of the vessels is expected to be
partially financed with a $44.0 million new term loan facility and
the balance with available cash. The loan facility has an
amortization profile of five years, matures in July 2023 and bears
interest at LIBOR plus 290 bps per annum.
The transaction was approved by the Conflicts
Committee of the Board of Directors of Navios Partners.
On June 7, 2018, Navios Partners took
delivery of the Navios Altair I, a 2006-built Panamax vessel of
74,475 dwt, acquired from an unrelated third party for a purchase
price of $11.0 million.
On May 21, 2018, Navios Partners took
delivery of the Navios Symmetry, a 2006-built Panamax vessel of
74,381 dwt, acquired from an unrelated third party, for a purchase
price of $11.0 million.
On May 9, 2018, Navios Partners took
delivery of the Navios Apollon I, a 2005-built Panamax vessel of
87,052 dwt, acquired from an unrelated third party, for a purchase
price of approximately $13.0 million.
Sale of YM Unity and YM
Utmost
On July 2, 2018, Navios Partners sold to its
affiliate, Navios Maritime Containers Inc. (“Navios Containers”)
the YM Unity and the YM Utmost, two 2006-built containerships of
8,204 TEU each, for a sale price of $67.0 million. The loss on sale
of the vessels amounted to $37.9 million and was recognized in the
second quarter of 2018. Navios Partners used a portion of the sale
proceeds to repay $20.2 million of its outstanding debt. As a
result of the sales, the YM Unity and the YM Utmost were released
from security of the Term Loan B Facility. In exchange, four
drybulk vessels and $4.0 million in cash substituted the two
vessels as collateral to the Term Loan B Facility.
Sale of Containerships
On June 11, 2018, Navios Partners agreed to sell
the Hyundai Hongkong, a 2006-built, 6,800 TEU containership to its
affiliate, Navios Containers, for a sale price of approximately
$36.0 million. The vessel is expected to be delivered to Navios
Containers in the third quarter of 2018.
Navios Partners also granted options to Navios
Containers to acquire four additional 2006-built, 6,800 TEU
containerships (the Hyundai Singapore, the Hyundai Busan, the
Hyundai Shanghai and the Hyundai Tokyo) for a purchase price of
$36.0 million per vessel. Each of the four vessels are sister ships
to the Hyundai Hongkong and have the same time charter employment
in place.
All of the acquisitions are subject to certain
conditions, and there can be no assurances that these acquisitions
will occur in whole or in part.
The transaction was approved by the Conflicts
Committee of the Board of Directors of Navios Partners.
Cash Distribution
The Board of Directors of Navios Partners
declared a cash distribution for the second quarter of 2018 of
$0.02 per unit. The cash distribution is payable on August 10, 2018
to all unitholders of record as of August 7, 2018.
Long-Term Cash Flow
Navios Partners has entered into medium to
long-term time charter-out agreements for its vessels with a
remaining average term of approximately 2.0 years. Navios Partners
has currently contracted out 88.8% of its available days for 2018,
35.6% for 2019 and 23.5% for 2020, including index-linked charters,
expecting to generate revenues (excluding index-linked charters) of
approximately $155.8 million, $58.4 million and $65.9 million,
respectively. The average expected daily charter-out rate for the
fleet is $16,109, $22,697 and $29,992 for 2018, 2019 and 2020,
respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of operations for the three and six month
periods ended June 30, 2018 and 2017. The quarterly 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 calculated in
accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”).
As of August 29, 2017, Navios Containers was no
longer consolidated and commenced being accounted for under the
equity method of accounting. As Navios Containers had operations
during the three and six month periods ended June 30, 2017, the
table below includes the impact of Navios Containers in the
consolidated financial results and selected financial data for such
periods.
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Three Month |
|
Three Month |
|
Six Month |
|
Six Month |
|
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
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June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
(in $‘000 except per unit data) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
58,196 |
$ |
50,018 |
$ |
111,248 |
$ |
92,429 |
Net (loss)/ income |
$ |
(29,533) |
$ |
4,090 |
$ |
(24,055) |
$ |
(1,563) |
Adjusted Net Income |
$ |
9,157(1) |
$ |
4,560(3) |
$ |
15,249(4) |
$ |
5,280(6) |
Net cash provided by operating activities |
$ |
24,827 |
$ |
12,264 |
$ |
31,254 |
$ |
10,084 |
EBITDA |
$ |
(3,825) |
$ |
31,745 |
$ |
27,086 |
$ |
54,399 |
Adjusted EBITDA |
$ |
34,656(2) |
$ |
32,214(3) |
$ |
66,181(5) |
$ |
58,087(7) |
(Loss)/ Earnings per Common unit (basic and |
|
|
|
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diluted) |
$ |
(0.18) |
$ |
0.03 |
$ |
(0.15) |
$ |
(0.01) |
Adjusted Earnings per Common unit (basic and
diluted) |
$ |
0.05(1) |
$ |
0.03(3) |
$ |
0.09(4) |
$ |
0.04(6) |
Operating Surplus |
$ |
19,783 |
$ |
22,350 |
$ |
37,243 |
$ |
39,917 |
Maintenance and Replacement Capital |
|
|
|
|
|
|
|
|
expenditure reserve |
$ |
6,357 |
$ |
3,476 |
$ |
12,419 |
$ |
6,740 |
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(1) Adjusted Net Income and Adjusted Earnings per Common unit
for the three month period ended June 30, 2018 have been adjusted
to exclude a $37.9 million impairment loss related to the sale of
two of our vessels, a $0.6 million equity compensation expense and
a $0.2 million write-off of deferred finance fees related to $20.2
million debt repayment in the third quarter of 2018.
(2) Adjusted EBITDA for the three month period ended June 30,
2018 has been adjusted to exclude a $37.9 million impairment
loss related to the sale of two of our vessels and a $0.6 million
equity compensation expense.
(3) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings
per Common unit for the three month period ended June 30, 2017 have
been adjusted to exclude a $0.5 million equity compensation
expense.
(4) Adjusted Net Income and Adjusted Earnings per Common unit
for the six month period ended June 30, 2018 have been adjusted to
exclude a $37.9 million impairment loss related to the sale of two
of our vessels, a $1.2 million equity compensation expense and a
$0.2 million write-off of deferred finance fees related to $20.2
million debt repayment in the third quarter of 2018.
(5) Adjusted EBITDA for the six month period ended June 30, 2018
has been adjusted to exclude a $37.9 million impairment loss
related to the sale of two of our vessels and a $1.2 million equity
compensation expense.
(6) Adjusted Net Income and Adjusted Earnings per Common unit
for the six month period 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, a
$1.5 million allowance for doubtful accounts, a $1.3 million loss
related to the sale of one of our vessels and a $0.9 million equity
compensation expense.
(7) Adjusted EBITDA for the six month period ended June 30, 2017
has been adjusted to exclude a $1.5 million allowance for doubtful
accounts, a $1.3 million loss related to the sale of one of our
vessels and a $0.9 million equity compensation expense.
Three month periods ended June
30, 2018 and 2017
The details below exclude the impact of the
consolidation of Navios Containers for the periods presented as it
is intended to provide investors with a clearer picture of Navios
Partners on a going forward basis. Navios Containers’ effect on
time charter and voyage revenues and EBITDA for the period from
April 28, 2017 (date of inception) to June 30, 2017 was $3.1
million and 2.3 million, respectively.
Time charter and voyage revenues for Navios
Partners for the three month period ended June 30, 2018 increased
by $11.3 million, or 24.0%, to $58.2 million, as compared
to $46.9 million for the same period in 2017. The increase in
time charter and voyage revenues was mainly attributable to: (i)
the increase in revenue following the acquisition of the seven
vessels in 2017 and the three vessels in 2018; and (ii) the
increase in available days of the fleet to 3,366 days for the three
month period ended June 30, 2018, as compared to 2,844 days
for the three month period ended June 30, 2017, mainly due to
the increased fleet. That increase was partially mitigated by the
decrease in revenue due to the sales of the Navios Apollon and the
Navios Gemini S in 2017.
EBITDA of Navios Partners for the three month
period ended June 30, 2018 was negatively affected by the
accounting effect of a: (i) $37.9 million impairment loss on the
sale of the YM Unity and the YM Utmost; and (ii) $0.6 million
equity compensation expense. EBITDA of Navios Partners for the
three month period ended June 30, 2017 was negatively affected by
the accounting effect of a $0.5 million equity compensation
expense. Excluding these items, Adjusted EBITDA increased by $4.4
million to $34.7 million for the three month period ended
June 30, 2018, as compared to $30.3 million for the same
period in 2017. The increase in Adjusted EBITDA was primarily due
to: (i) an $11.3 million increase in revenue; (ii) a $0.3 million
decrease in other expenses; and (iii) a $1.6 million increase in
equity in net earnings of affiliated companies. The above increase
was partially mitigated by a: (i) $2.8 million increase in time
charter and voyage expenses; (ii) $2.6 million increase in
management fees due to the increased fleet; (iii) $0.6 million
increase in general and administrative expenses; and (iv) $2.8
million decrease in other income.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
June 30, 2018 and 2017 were $6.4 million and $3.5 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, 2018 of
$19.8 million, as compared to $22.4 million for the three
month period ended June 30, 2017. Operating Surplus is a non-GAAP
financial measure used by certain investors to assist in evaluating
a partnership’s ability to make quarterly cash distributions
(please see “Reconciliation of Non-GAAP Financial Measures” in
Exhibit 3).
Net Income of Navios Partners for the three
month period ended June 30, 2018 was negatively affected by the
accounting effect of a: (i) $37.9 million impairment loss on the
sale of the YM Unity and the YM Utmost; (ii) $0.6 million equity
compensation expense; and (iii) $0.2 million write-off of deferred
finance fees. Net Income of Navios Partners for the three month
period ended June 30, 2017 was negatively affected by the
accounting effect of a $0.5 million equity compensation expense.
Excluding these items, Adjusted Net Income for the three month
period ended June 30, 2018 amounted to $9.2 million compared to
$4.1 million for the three month period ended June 30, 2017. The
increase in Adjusted Net Income of $5.1 million was due to a: (i)
$4.4 million increase in adjusted EBITDA; (ii) $0.1 million
decrease in direct vessel expenses; (iii) $3.0 million decrease in
depreciation and amortization expense; and (iv) $0.1 million
increase in interest income. The above increase was partially
mitigated by a $2.4 million increase in interest expense and
finance cost, net.
Six month periods ended June 30, 2018
and 2017
The details below exclude the impact of the
consolidation of Navios Containers for the periods presented as it
is intended to provide investors with a clearer picture of Navios
Partners on a going forward basis. Navios Containers’ effect on
time charter and voyage revenues and EBITDA for the period from
April 28, 2017 (date of inception) to June 30, 2017 was $3.1
million and 2.3 million, respectively.
Time charter and voyage revenues for Navios
Partners for the six month period ended June 30, 2018
increased by $21.9 million, or 24.5%, to $111.2 million,
as compared to $89.3 million for the same period in 2017. The
increase in time charter and voyage revenues was mainly
attributable to: (i) the increase in revenue following the
acquisition of the seven vessels in 2017 and the three vessels in
2018; and (ii) the increase in TCE to $16,295 per day for the six
month period ended June 30, 2018, from $15,593 per day for the six
month period ended June 30, 2017 due to the increase in the freight
market. That increase was partially mitigated by the decrease in
revenue due to the sales of the MSC Cristina, the Navios Apollon
and the Navios Gemini S in 2017. The available days of the fleet
increased to 6,552 days for the six month period ended
June 30, 2018, as compared to 5,639 days for the six month
period ended June 30, 2017, mainly due to the increased
fleet.
EBITDA of Navios Partners for the six month
period ended June 30, 2018 was negatively affected by the
accounting effect of a: (i) $37.9 million impairment loss on the
sale of the YM Unity and the YM Utmost; and (ii) $1.2 million
equity compensation expense. EBITDA of Navios Partners for the six
month period 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 sale of the MSC
Cristina and; (iii) $0.9 million equity compensation expense.
Excluding these items, Adjusted EBITDA increased by $10.0 million
to $66.2 million for the six month period ended June 30, 2018, as
compared to $56.2 million for the same period in 2017. The increase
in Adjusted EBITDA was primarily due to a: (i) $21.9 million
increase in revenue; and (ii) $2.7 million increase in equity in
net earnings of affiliated companies. The above increase was
partially mitigated by a: (i) $3.1 million increase in time charter
and voyage expenses; (ii) $5.0 million increase in management fees
due to the increased fleet; (iii) $0.8 million increase in general
and administrative expenses; (iv) $5.3 million decrease in other
income; and (v) $0.4 million increase in other expenses.
The reserves for estimated maintenance and
replacement capital expenditures for the six month periods ended
June 30, 2018 and 2017 were $12.4 million and $6.7 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, 2018 of
$37.2 million, compared to $39.9 million for the six
month period ended June 30, 2017. 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 month
period ended June 30, 2018 was negatively affected by the
accounting effect of a: (i) $37.9 million impairment loss on the
sale of the YM Unity and the YM Utmost; (ii) $1.2 million equity
compensation expense; and (iii) $0.2 million write-off of deferred
finance fees. Net Income of Navios Partners for the six month
period 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 sale of the MSC Cristina;
and (iv) $0.9 million equity compensation expense. Excluding these
items, Adjusted Net Income for the six month period ended June 30,
2018 amounted to $15.2 million compared to $4.8 million for the six
month period ended June 30, 2017. The increase in Adjusted Net
Income of $10.5 million was due to a: (i) $10.0 million increase in
Adjusted EBITDA; (ii) $0.2 million decrease in direct vessel
expenses; (iii) $4.9 million decrease in depreciation and
amortization expense; and (iv) $0.5 million increase in interest
income. The above increase was partially mitigated by a $5.1
million increase in interest expense and finance cost, net.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
and six month periods ended June 30, 2018 and 2017 (including
115 operating days of Navios Containers for the period from April
28, 2017 to June 30, 2017).
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|
Three Month Period
Ended June 30, 2018 (unaudited) |
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|
Three Month Period
Ended June 30, 2017 (unaudited) |
|
|
Six
Month Period Ended June 30, 2018 (unaudited) |
|
|
Six
Month Period Ended June 30, 2017 (unaudited) |
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Available
Days(1) |
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3,366 |
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|
2,959 |
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|
|
6,552 |
|
|
|
5,754 |
|
Operating
Days(2) |
|
|
3,343 |
|
|
|
2,936 |
|
|
|
6,486 |
|
|
|
5,725 |
|
Fleet
Utilization(3) |
|
|
99.34 |
% |
|
|
99.20 |
% |
|
|
98.99 |
% |
|
|
99.51 |
% |
Time
Charter Equivalent Combined (per day) (4) |
$ |
|
16,472 |
|
|
$ |
16,905 |
|
|
$ |
16,295 |
|
|
$ |
15,820 |
|
Time
Charter Equivalent Drybulk (per day) (4) |
$ |
|
12,898 |
|
|
$ |
11,595 |
|
|
$ |
12,592 |
|
|
$ |
10,508 |
|
Time
Charter Equivalent Containers (per day) (4) |
$ |
|
31,779 |
|
|
$ |
31,081 |
|
|
$ |
31,740 |
|
|
$ |
31,617 |
|
Vessels
operating at period end |
|
|
39 |
|
|
|
37 |
|
|
|
39 |
|
|
|
37 |
|
(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 and ballast days
relating to voyages. 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 are 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. |
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|
|
(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, dry dockings 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, Wednesday, August 1, 2018 to discuss the
results for the second quarter and six months ended June 30,
2018.
Call Date/Time: Wednesday, August 1, 2018 at 8:30 am ET Call
Title: Navios Partners Q2 2018 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 959 5876The 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: +1.800.585.8367International Replay Dial In:
+1.404.537.3406 Conference ID: 959 5876
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 Maritime Partners L.P. (NYSE: NMM) is a
publicly traded master limited partnership which owns and operates
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’ 2018 cash flow generation, future contracted revenues,
future distributions, 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 Containerships
in particular, fluctuations in charter rates for dry cargo carriers
and containerships, the aging of our fleet and resultant increases
in operations costs, the loss of any customer or charter or vessel,
the financial condition of our customers, changes in the
availability and costs of funding due to conditions in the bank
market, capital markets and other factors, increases in costs
and expenses, including but not limited to: crew wages,
insurance, provisions, port expenses, lube oil, bunkers, repairs,
maintenance and general and administrative
expenses, the expected cost of, and our ability
to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business,
general domestic and international political conditions,
competitive factors in the market in which Navios Partners
operates; risks associated with operations outside the United
States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners
expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Navios Partners’
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based. Navios
Partners makes no prediction or statement about the performance of
its common units.
Contacts
Navios Maritime Partners L.P.+1 (212) 906
8645Investors@navios-mlp.com
Nicolas BornozisCapital Link, Inc.+1 (212) 661
7566naviospartners@capitallink.com
|
EXHIBIT 1 |
NAVIOS MARITIME PARTNERS
L.P. |
SELECTED BALANCE SHEET
DATA |
(Expressed in thousands of U.S. Dollars
except unit data) |
|
|
|
June 30,
2018 (unaudited) |
|
December 31,
2017 (unaudited) |
ASSETS |
|
|
|
|
|
Cash and
cash equivalents, including restricted cash |
$ |
40,979 |
|
$ |
29,933 |
Vessels,
net |
|
1,005,290 |
|
|
1,099,015 |
Vessels
held for sale |
|
67,000 |
|
|
— |
Other
assets (including current and non-current) |
|
187,993 |
|
|
168,274 |
Intangible
assets |
|
6,048 |
|
|
8,080 |
|
|
|
|
|
|
Total assets |
$ |
1,307,310 |
|
$ |
1,305,302 |
|
|
|
|
|
|
LIABILITIES AND PARTNERS’ CAPITAL |
|
|
|
|
|
Other
current liabilities |
$ |
26,759 |
|
$ |
27,661 |
Current
portion of long-term debt, net |
|
45,012 |
|
|
26,586 |
Long-term
debt, net |
|
449,450 |
|
|
466,877 |
Other
non-current liabilities |
|
10,467 |
|
|
16,468 |
Total
partners’ capital |
|
775,622 |
|
|
767,710 |
|
|
|
|
|
|
Total liabilities and partners’ capital |
$ |
1,307,310 |
|
$ |
1,305,302 |
|
|
|
|
|
|
|
|
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, 2018 (unaudited) |
|
Three Month Period Ended
June 30, 2017 (unaudited) |
|
Six Month Period Ended
June 30, 2018 (unaudited) |
|
Six Month Period Ended
June 30, 2017 (unaudited) |
|
Time
charter and voyage revenues |
$ |
58,196 |
|
$ |
50,018 |
|
$ |
111,248 |
|
$ |
92,429 |
|
Time
charter and voyage expenses |
|
(2,758 |
) |
|
— |
|
|
(4,488 |
) |
|
(1,413 |
) |
Direct
vessel expenses |
|
(1,544 |
) |
|
(1,631 |
) |
|
(3,169 |
) |
|
(3,333 |
) |
Management
fees (entirely through related parties transactions) |
|
(17,381 |
) |
|
(15,462 |
) |
|
(34,072 |
) |
|
(29,805 |
) |
General and
administrative expenses |
|
(5,513 |
) |
|
(4,865 |
) |
|
(9,044 |
) |
|
(8,077 |
) |
Depreciation and amortization |
|
(14,355 |
) |
|
(18,680 |
) |
|
(29,272 |
) |
|
(35,455 |
) |
Vessel
impairment losses |
|
(37,860 |
) |
|
— |
|
|
(37,860 |
) |
|
— |
|
Interest
expense and finance cost, net |
|
(10,794 |
) |
|
(8,145 |
) |
|
(20,647 |
) |
|
(18,500 |
) |
Interest
income |
|
985 |
|
|
803 |
|
|
1,947 |
|
|
1,326 |
|
Other
income |
|
146 |
|
|
2,950 |
|
|
720 |
|
|
6,070 |
|
Other
expense |
|
(269 |
) |
|
(543 |
) |
|
(2,072 |
) |
|
(4,450 |
) |
Equity in
net earnings of affiliated companies |
|
1,614 |
|
|
— |
|
|
2,654 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/ income |
$ |
(29,533 |
) |
$ |
4,445 |
|
$ |
(24,055 |
) |
$ |
(1,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to the noncontrolling interest |
|
— |
|
$ |
(355 |
) |
|
— |
|
$ |
(355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/ income attributable to Navios Partners
unitholders |
$ |
(29,533 |
) |
$ |
4,090 |
|
$ |
(24,055 |
) |
$ |
(1,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit:
|
|
|
|
|
|
|
|
|
|
|
Three Month
Period Ended June 30,
2018 (unaudited) |
|
Three Month
Period Ended June 30,
2017 (unaudited) |
|
Six Month
Period Ended June 30,
2018 (unaudited) |
|
Six Month
Period Ended June 30,
2017 (unaudited) |
|
(Loss)/ earnings per unit: |
|
|
|
|
|
|
|
|
Common unit (basic and diluted) |
$ |
(0.18 |
) |
$ |
0.03 |
|
$ |
(0.15 |
) |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P. |
Other Financial
Information |
(Expressed in thousands of U.S. Dollars
except unit data) |
|
|
|
|
Six Month Period Ended
June 30, 2018 (Unaudited) |
|
Six Month Period Ended
June 30, 2017 (Unaudited) |
|
Net cash
provided by operating activities |
$ |
31,254 |
|
$ |
10,084 |
|
Net cash
used in investing activities |
|
(48,401 |
) |
|
(11,769 |
) |
Net cash
provided by financing activities |
|
28,193 |
|
|
62,645 |
|
|
|
|
|
|
|
|
Net
increase in cash, cash equivalents and restricted
cash |
$ |
11,046 |
|
$ |
60,960 |
|
|
|
|
|
|
|
|
EXHIBIT 2 |
Owned Drybulk Vessels |
|
Type |
Built |
|
Capacity(DWT) |
|
Navios
Soleil |
|
Ultra-Handymax |
2009 |
|
57,337 |
|
Navios La
Paix |
|
Ultra-Handymax |
2014 |
|
61,485 |
|
Navios
Christine B |
|
Ultra-Handymax |
2009 |
|
58,058 |
|
Navios
Libra II |
|
Panamax |
1995 |
|
70,136 |
|
Navios
Felicity |
|
Panamax |
1997 |
|
73,867 |
|
Navios
Galaxy I |
|
Panamax |
2001 |
|
74,195 |
|
Navios
Hyperion |
|
Panamax |
2004 |
|
75,707 |
|
Navios
Alegria |
|
Panamax |
2004 |
|
76,466 |
|
Navios
Orbiter |
|
Panamax |
2004 |
|
76,602 |
|
Navios
Helios |
|
Panamax |
2005 |
|
77,075 |
|
Navios
Hope |
|
Panamax |
2005 |
|
75,397 |
|
Navios
Sun |
|
Panamax |
2005 |
|
76,619 |
|
Navios
Sagittarius |
|
Panamax |
2006 |
|
75,756 |
|
Navios
Harmony |
|
Panamax |
2006 |
|
82,790 |
|
Navios
Prosperity I |
|
Panamax |
2007 |
|
75,527 |
|
Navios
Libertas |
|
Panamax |
2007 |
|
75,511 |
|
Navios
Fantastiks |
|
Capesize |
2005 |
|
180,265 |
|
Navios
Aurora II |
|
Capesize |
2009 |
|
169,031 |
|
Navios
Pollux |
|
Capesize |
2009 |
|
180,727 |
|
Navios
Fulvia |
|
Capesize |
2010 |
|
179,263 |
|
Navios
Melodia |
|
Capesize |
2010 |
|
179,132 |
|
Navios
Luz |
|
Capesize |
2010 |
|
179,144 |
|
Navios
Buena Ventura |
|
Capesize |
2010 |
|
179,259 |
|
Navios
Joy |
|
Capesize |
2013 |
|
181,389 |
|
Navios
Beaufiks |
|
Capesize |
2004 |
|
180,310 |
|
Navios
Ace |
|
Capesize |
2011 |
|
179,016 |
|
Navios
Sol |
|
Capesize |
2009 |
|
180,274 |
|
Navios
Symphony |
|
Capesize |
2010 |
|
178,132 |
|
Navios
Aster |
|
Capesize |
2010 |
|
179,314 |
|
Navios
Altair I |
|
Panamax |
2006 |
|
74,475 |
|
Navios
Symmetry |
|
Panamax |
2006 |
|
74,381 |
|
Navios
Apollon I |
|
Panamax |
2005 |
|
87,052 |
|
|
|
|
|
|
|
|
Vessels to be delivered |
|
Type |
|
Built |
|
|
Capacity(DWT) |
|
Delivery Date |
|
Navios
Sphera |
|
Panamax |
|
2016 |
|
|
84,872 |
|
Q3 2018 |
|
Navios
Mars |
|
Capesize |
|
2016 |
|
|
181,259 |
|
Q3 2018 |
|
Chartered-in vessels to be
delivered |
|
Type |
|
Built |
|
|
Capacity(DWT) |
|
|
Delivery Date |
|
Navios TBN
I |
|
Panamax |
|
2019 |
|
|
81,000 |
|
|
H2 2019 |
|
Owned
Containerships(1) |
|
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 |
|
(1) One of the containerships has agreed to be sold to Navios
Containers. Navios Containers also has the option to acquire the
four remaining containerships.
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net (loss)/ income
attributable to Navios Partners’ unitholders before interest and
finance costs, before depreciation and amortization (including
intangible accelerated amortization) and income taxes. Adjusted
EBITDA represents EBITDA before equity compensation expense, loss
on sale of vessel, impairment losses and allowance for doubtful
accounts, reactivation costs and gain on change in control. Navios
Partners uses Adjusted EBITDA as a liquidity measure and reconcile
EBITDA and Adjusted EBITDA to net cash provided by/(used in)
operating activities, the most comparable U.S. GAAP liquidity
measure. EBITDA in this document is calculated as follows: net cash
provided by/(used in) operating activities adding back, when
applicable and as the case may be, the effect of: (i) net
(increase)/decrease in operating assets; (ii) net
(decrease)/increase in operating liabilities; (iii) net
interest cost; (iv) amortization and write-off of deferred
finance charges and other related expenses; (v) allowance for
doubtful accounts; (vi) equity in net earnings of affiliated
companies; (vii) payments for drydock and special survey
costs; (viii) gain/(loss) on sale of assets/subsidiaries;
(ix) impairment charges; (x) non-cash accrued interest
income and amortization of deferred revenue; (xi) gain/(loss)
on debt repayments; (xii) equity compensation expense; (xiii)
gain on change in control; (xiv) noncontrolling interest; and (xv)
non-cash accrued interest income from receivable from affiliates.
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, 2018($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2018($
‘000)(unaudited) |
|
Six
MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
Net cash provided by operating activities |
|
$ |
24,827 |
|
|
|
$ |
12,264 |
(2) |
|
|
$ |
31,254 |
|
|
$ |
10,084 |
(2) |
Net (increase)/ decrease in operating assets |
|
|
(1,953 |
) |
|
|
|
13,732 |
(2) |
|
|
|
9,803 |
|
|
|
23,766 |
(2) |
Net (decrease)/ increase in operating liabilities |
|
|
(908 |
) |
|
|
|
(2,253 |
) |
|
|
|
1,061 |
|
|
|
7,364 |
|
Net interest cost |
|
|
9,809 |
|
|
|
|
7,343 |
|
|
|
|
18,700 |
|
|
|
17,175 |
|
Amortization and write-off of deferred financing cost |
|
|
(1,921 |
) |
|
|
|
(1,605 |
) |
|
|
|
(3,631 |
) |
|
|
(6,159 |
) |
Non cash accrued interest income and amortization of deferred
revenue |
|
|
3,121 |
|
|
|
|
3,118 |
|
|
|
|
6,208 |
|
|
|
6,203 |
|
Equity compensation expense |
|
|
(621 |
) |
|
|
|
(469 |
) |
|
|
|
(1,235 |
) |
|
|
(933 |
) |
Vessels impairment loss |
|
|
(37,860 |
) |
|
|
|
— |
|
|
|
|
(37,860 |
) |
|
|
— |
|
Non cash accrued interest income from receivable from
affiliates |
|
|
67 |
|
|
|
|
(7 |
) |
|
|
|
132 |
|
|
|
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 |
|
|
1,614 |
|
|
|
|
(23 |
) |
|
|
|
2,654 |
|
|
|
(64 |
) |
EBITDA(1) |
|
$ |
(3,825 |
) |
|
|
$ |
31,745 |
|
|
|
$ |
27,086 |
|
|
$ |
54,399 |
|
Allowance for doubtful accounts |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
1,495 |
|
Loss on vessel disposal |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
1,260 |
|
Equity compensation expense |
|
|
621 |
|
|
|
|
469 |
|
|
|
|
1,235 |
|
|
|
933 |
|
Vessels impairment loss |
|
|
37,860 |
|
|
|
|
— |
|
|
|
|
37,860 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
34,656 |
|
|
|
$ |
32,214 |
|
|
|
$ |
66,181 |
|
|
$ |
58,087 |
|
Cash interest income |
|
|
213 |
|
|
|
|
270 |
|
|
|
|
331 |
|
|
|
371 |
|
Cash interest paid |
|
|
(8,729 |
) |
|
|
|
(6,658 |
) |
|
|
|
(16,850 |
) |
|
|
(11,801 |
) |
Maintenance and replacement capital expenditures |
|
|
(6,357 |
) |
|
|
|
(3,476 |
) |
|
|
|
(12,419 |
) |
|
|
(6,740 |
) |
Operating Surplus |
|
$ |
19,783 |
|
|
|
$ |
22,350 |
|
|
|
$ |
37,243 |
|
|
$ |
39,917 |
|
Cash distribution paid relating to the first quarter |
|
|
— |
|
|
|
|
— |
|
|
|
|
(3,420 |
) |
|
|
— |
|
Cash reserves |
|
|
(16,363 |
) |
|
|
|
(22,350 |
) |
|
|
|
(30,403 |
) |
|
|
(39,917 |
) |
Available cash for distribution |
|
$ |
3,420 |
|
|
|
$ |
— |
|
|
|
$ |
3,420 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthPeriod EndedJune 30, 2018($
‘000)(unaudited) |
|
Three MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
|
|
|
Six
MonthPeriod EndedJune 30, 2018($
‘000)(unaudited) |
|
|
Six
MonthPeriod EndedJune 30, 2017($
‘000)(unaudited) |
|
Net cash
provided by operating activities |
$ |
24,827 |
|
$ |
12,264 |
|
|
|
|
$ |
31,254 |
|
|
$ |
10,084 |
|
Net cash
used in investing activities |
$ |
(34,766 |
) |
$ |
(109,814 |
) |
|
|
|
$ |
(48,401 |
) |
|
$ |
(11,769 |
) |
Net cash
provided by financing activities |
$ |
2,257 |
|
$ |
65,649 |
|
|
|
|
$ |
28,193 |
|
|
$ |
62,645 |
|
(2) The net cash provided by operating activities and net
increase in operating assets presented in this table have been
revised to reflect the adoption of ASU 2016-18, which was effective
beginning the first quarter ended March 31, 2018 and applied
retrospectively to the three and six month periods ended June 30,
2017.
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