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 first quarter ended March
31, 2019.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “I am pleased with the results
for the first quarter of 2019 during
which Navios Partners reported $46.8 million of
Revenue and $22.7 million
of Adjusted EBITDA. For the quarter, we
declared a quarterly distribution of $0.02 cents per
unit, representing a current yield of approximately 8%.”
Angeliki Frangou continued, “Our results were
particularly strong given the weak market backdrop. Charter
rates in the drybulk sector were adversely effected by
January’s tragic dam collapse in Brazil,
which removed a significant amount of iron ore
from the longest trading route to China.
Despite this challenging environment, NMM earned
a TCE rate of $13,209 per day for its fleet in the first
quarter. Also, we have seen material rate improvement since
Q1. The current spot rate for capesize vessels of $11,182 has
increased about 90% from the average spot rate for the months
of February and March.”
Cash Distribution
The Board of Directors of Navios Partners
declared a cash distribution for the first quarter of 2019 of $0.02
per unit. The cash distribution is payable on May 14, 2019 to all
unitholders of record as of May 10, 2019.
Financing Arrangements
On April 5, 2019, Navios Partners completed a
$20.0 million sale and leaseback transaction with unrelated third
parties, for a 2009-built Capesize vessel. The sale and leaseback
transaction has a duration of ten years and an implied fixed
interest rate of 6.6%. Navios Partners has the option to buy the
vessel starting at the end of year four de-escalating to a $6.3
million obligation at maturity. There are no financial covenants or
no loan-to-value requirements in connection with the sale and
leaseback transaction.
On April 15, 2019, Navios Partners drew $31.4
million under a new commercial bank facility to refinance two
Capesize vessels.
On April 23, 2019, the Navios Galaxy was sold
for approximately $6.0 million and released from the Term Loan B
collateral package. The sale resulted in an impairment loss of $7.3
million, which was included in the first quarter of 2019.
On May 3, 2019, Navios Partners released one
Ultra-Handymax vessel from the Term Loan B collateral package.
Following the above transactions, Navios
Partners prepaid $73.5 million to the Term Loan B in order to
release five vessels from the collateral package.
Reverse Stock Split
On April 25, 2019, Navios Partners announced
that its Board of Directors has approved a 1-for-15 reverse split
of its issued and outstanding common units. The reverse split
will be effected before the market opens on May 21, 2019. Common
units will begin trading on May 21, 2019 on a split-adjusted basis
on the New York Stock Exchange, under the same ticker symbol, NMM.
Following the reverse split, the Company expects to have
approximately 11.1 million common units issued and outstanding.
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 2.2 years. Navios Partners
has currently contracted out 84.8% of its available days for 2019,
36.2% for 2020 and 23.4% for 2021, including index-linked charters,
expecting to generate revenues (excluding index-linked charters) of
approximately $117.2 million, $82.0 million and $80.8 million,
respectively. The average contracted daily charter-out rate for the
fleet is $15,811, $27,479 and $27,684 for 2019, 2020 and 2021,
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
ended March 31, 2019 and 2018. 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”).
|
Three Month |
|
|
Three Month |
|
|
Period Ended |
|
|
Period Ended |
|
|
March 31,2019 |
|
|
March 31,2018 |
|
(in $‘000
except per unit data) |
(unaudited) |
|
|
(unaudited) |
|
Revenue |
$ |
46,818 |
|
|
$ |
53,052 |
|
Net (Loss)/ Income |
$ |
(9,523) |
|
|
$ |
5,478 |
|
Adjusted Net (Loss)/
Income |
$ |
(2,178) |
(1) |
|
$ |
6,092 |
(2) |
Net cash provided by
operating activities |
$ |
10,483 |
|
|
$ |
6,427 |
|
EBITDA |
$ |
15,313 |
|
|
$ |
30,911 |
|
Adjusted EBITDA |
$ |
22,658 |
(1) |
|
$ |
31,525 |
(2) |
Loss/ Earnings per
Common Unit (basic and diluted) |
$ |
(0.06) |
|
|
$ |
0.03 |
|
Adjusted (Loss)/
Earnings per Common Unit (basic and diluted) |
$ |
(0.01) |
(1) |
|
$ |
0.04 |
(2) |
Operating Surplus |
$ |
5,702 |
(1) |
|
$ |
17,460 |
(2) |
Maintenance and
Replacement Capital Expenditure Reserve |
$ |
7,474 |
|
|
$ |
6,062 |
|
(1) Adjusted Net Loss, Adjusted EBITDA and Adjusted Loss per
Common Unit for the three month period ended March 31, 2019 have
been adjusted to exclude a $7.3 million impairment loss related to
the sale of one of our vessels. (2) Adjusted Net Income, Adjusted
EBITDA and Adjusted Earnings per Common Unit for the three month
period ended March 31, 2018 have been adjusted to exclude a $0.6
million equity compensation expense.
Three month periods ended March
31, 2019 and 2018
Time charter and voyage revenues for the three
month period ended March 31, 2019 decreased by $6.2 million,
or 11.8%, to $46.8 million, as compared to $53.1 million
for the same period in 2018. The decrease in time charter and
voyage revenues was mainly attributable to: (i) the decrease in
revenue due to the sales of the YM Unity and the YM Utmost in July
2018 and the Navios Felicity and the Navios Libra II in December
2018; and (ii) the decrease in the time charter equivalent rate, or
TCE rate, to $13,209 per day for the three month period ended March
31, 2019, from $16,108 per day for the three month period ended
March 31, 2018. That decrease was partially mitigated by the
increase in revenue following the acquisition of five vessels in
2018. The available days of the fleet increased to 3,277 days for
the three month period ended March 31, 2019, as compared to
3,186 days for the three month period ended March 31, 2018,
mainly due to the increased size of the fleet.
EBITDA for the three month period ended
March 31, 2019 was negatively affected by the accounting
effect of a $7.3 million impairment loss on the sale of the Navios
Galaxy I. EBITDA for the three month period ended March 31, 2018
was negatively affected by the accounting effect of a $0.6 million
equity compensation expense. Excluding these items, Adjusted EBITDA
decreased by $8.9 million to $22.7 million for the three month
period ended March 31, 2019, as compared to $31.5 million for
the same period in 2018. The decrease in Adjusted EBITDA was
primarily due to a: (i) $6.2 million decrease in revenue; (ii) $1.8
million increase in time charter and voyage expenses; (iii) $1.1
million increase in general and administrative expenses; (iv) $0.4
million decrease in other income; and (vi) $1.0 million decrease in
equity in net earnings of affiliated companies. The above decrease
was partially mitigated by a: (i) $0.1 million decrease in
management fees; and (ii) $1.6 million decrease in other
expenses.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
March 31, 2019 and 2018 were $7.5 million and $6.1 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 March 31, 2019 of
$5.7 million, as compared to $17.5 million for the three
month period ended March 31, 2018. 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 Loss for the three month period ended March
31, 2019 was negatively affected by the accounting effect of a $7.3
million impairment loss on the sale of the Navios Galaxy I. Net
Income for the three month period ended March 31, 2018 was
negatively affected by the accounting effect of a $0.6 million
equity compensation expense. Excluding these items, Adjusted Net
Loss for the three month period ended March 31, 2019 amounted to
$(2.2) million compared to $6.1 million for the three month period
ended March 31, 2018. The decrease in Adjusted Net Income of $8.3
million was due to: (i) an $8.9 million decrease in adjusted
EBITDA; and (ii) a $1.7 million increase in interest expense and
finance cost, net. The above decrease was partially mitigated by a:
(i) $1.4 million decrease in depreciation and amortization expense;
and (ii) $0.8 million increase in interest income.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
month periods ended March 31, 2019 and 2018.
|
|
Three Month Period
EndedMarch 31, 2019 (unaudited) |
|
Three Month Period
EndedMarch 31, 2018 (unaudited) |
Available Days(1) |
|
|
3,277 |
|
|
3,186 |
Operating Days(2) |
|
|
3,213 |
|
|
3,142 |
Fleet Utilization(3) |
|
|
98.0% |
|
|
98.6% |
Time Charter Equivalent
Combined (per day) (4) |
|
$ |
13,209 |
|
$ |
16,108 |
Time Charter Equivalent
Drybulk (per day) (4) |
|
$ |
10,457 |
|
$ |
12,265 |
Time Charter Equivalent
Containers (per day) (4) |
|
$ |
30,501 |
|
$ |
31,700 |
Vessels operating at
period end |
|
|
37 |
|
|
36 |
(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. |
|
|
|
(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. |
Conference Call Details:
Navios Partners' management will host a
conference call on Monday, May 6, 2019 to discuss the results for
the first quarter ended March 31, 2019.
Call Date/Time: Monday, May 6, 2019 at 8:30 am ET Call Title:
Navios Partners Q1 2019 Financial Results Conference Call US Dial
In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 3077425
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: +1.800.585.8367International Replay Dial In:
+1.404.537.3406 Conference ID: 3077425
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’ expected 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 Containerships 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, 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)
|
March 31, 2019
(unaudited) |
|
December 31,
2018 (unaudited) |
ASSETS |
|
|
|
|
|
Cash and cash equivalents,
including restricted cash |
$ |
50,352 |
|
$ |
61,455 |
Vessels, net |
|
1,025,193 |
|
|
1,043,250 |
Other assets (including
current and non-current) |
|
206,054 |
|
|
205,096 |
Intangible assets |
|
4,040 |
|
|
4,332 |
|
|
|
|
|
|
Total
assets |
$ |
1,285,639 |
|
$ |
1,314,133 |
|
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
Other current
liabilities |
$ |
19,901 |
|
$ |
25,529 |
Current portion of
long-term borrowings, net |
|
26,748 |
|
|
26,804 |
Long-term borrowings, net
of current portion |
|
473,928 |
|
|
480,681 |
Other non-current
liabilities |
|
4,161 |
|
|
4,366 |
Total partners’
capital |
|
760,901 |
|
|
776,753 |
|
|
|
|
|
|
Total liabilities
and partners’ capital |
$ |
1,285,639 |
|
$ |
1,314,133 |
|
|
|
|
|
|
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 March 31,
2019(unaudited) |
|
Three Month Period Ended March 31,
2018(unaudited) |
|
Time charter and voyage
revenues |
$ |
46,818 |
|
|
$ |
53,052 |
|
Time charter and voyage
expenses |
|
(3,529 |
) |
|
|
(1,730 |
) |
Direct vessel
expenses |
|
(1,583 |
) |
|
|
(1,625 |
) |
Management fees (entirely
through related parties transactions) |
|
(16,610 |
) |
|
|
(16,691 |
) |
General and administrative
expenses |
|
(4,013 |
) |
|
|
(3,531 |
) |
Depreciation and
amortization |
|
(13,492 |
) |
|
|
(14,917 |
) |
Vessel impairment
losses |
|
(7,345 |
) |
|
|
— |
|
Interest expense and
finance cost, net |
|
(11,514 |
) |
|
|
(9,853 |
) |
Interest income |
|
1,743 |
|
|
|
962 |
|
Other income |
|
217 |
|
|
|
574 |
|
Other expense |
|
(232 |
) |
|
|
(1,803 |
) |
Equity in net earnings of
affiliated companies |
|
17 |
|
|
|
1,040 |
|
|
|
|
|
|
|
|
|
Net (loss)/
income |
$ |
(9,523 |
) |
|
$ |
5,478 |
|
|
|
|
|
|
|
|
|
(Loss)/ Earnings per unit:
|
Three Month
Period Ended March 31,
2019 (unaudited) |
|
|
Three Month Period Ended
March 31, 2018(unaudited) |
|
(Loss)/ Earnings per
unit: |
|
|
|
|
|
Common unit (basic and
diluted) |
$ |
(0.06 |
) |
|
$ |
0.03 |
|
NAVIOS MARITIME PARTNERS L.P.Other
Financial Information(Expressed in thousands of U.S.
Dollars except unit data)
|
Three Month Period
Ended March 31, 2019
(unaudited) |
|
Three Month Period
Ended March 31, 2018
(unaudited) |
|
Net cash provided by
operating activities |
$ |
10,483 |
|
|
$ |
6,427 |
|
Net cash used in investing
activities |
|
(5,375 |
) |
|
|
(13,635 |
) |
Net cash (used in)/
provided by financing activities |
|
(16,211 |
) |
|
|
25,936 |
|
|
|
|
|
|
|
|
|
(Decrease)/
increase in cash, cash equivalents and restricted
cash |
$ |
(11,103 |
) |
|
$ |
18,728 |
|
|
|
|
|
|
|
|
|
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 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 Symmetry |
|
Panamax |
|
2006 |
|
74,381 |
Navios Apollon I |
|
Panamax |
|
2005 |
|
87,052 |
Navios Altair I |
|
Panamax |
|
2006 |
|
74,475 |
Navios Sphera |
|
Panamax |
|
2016 |
|
84,872 |
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 Mars |
|
Capesize |
|
2016 |
|
181,259 |
Chartered-in vessel to be delivered |
|
Type |
|
Built |
|
Capacity(DWT) |
|
Delivery Date |
|
Navios Libra |
|
Panamax |
|
2019 |
|
81,000 |
|
H2
2019 |
|
Owned Containerships |
|
Type |
|
Built |
|
Capacity(TEU) |
Hyundai Hongkong |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Singapore |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Tokyo |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Shanghai |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Busan |
|
Containership |
|
2006 |
|
6,800 |
EXHIBIT 3Disclosure 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 and
vessel impairment losses. Navios Partners uses Adjusted EBITDA as a
liquidity measure and reconcile EBITDA and Adjusted EBITDA to net
cash provided by operating activities, the most comparable U.S.
GAAP liquidity measure. EBITDA in this document is calculated as
follows: net cash provided by operating activities adding back,
when applicable and as the case may be, the effect of: (i) net
(decrease)/ increase in operating assets; (ii) net decrease in
operating liabilities; (iii) net interest cost;
(iv) amortization and write-off of deferred financing cost;
(v) equity in net earnings of affiliated companies;
(vi) impairment charges; (vii) non-cash accrued interest
income and amortization of deferred revenue; (viii) equity
compensation expense; and (ix) 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 EndedMarch 31, 2019($
‘000)(unaudited) |
|
|
Three MonthPeriod EndedMarch 31, 2018($
‘000)(unaudited) |
Net cash provided by operating activities |
|
$ |
10,483 |
|
|
|
$ |
6,427 |
|
Net (decrease)/ increase
in operating assets |
|
|
(1,636 |
) |
|
|
|
11,756 |
|
Net decrease in operating
liabilities |
|
|
2,939 |
|
|
|
|
1,969 |
|
Net interest cost |
|
|
9,771 |
|
|
|
|
8,891 |
|
Amortization and write-off of deferred financing
cost |
|
|
(1,663 |
) |
|
|
|
(1,710 |
) |
Non cash accrued interest
income and amortization of deferred revenue |
|
|
3,171 |
|
|
|
|
3,087 |
|
Equity compensation
expense |
|
|
(494 |
) |
|
|
|
(614 |
) |
Vessel impairment
losses |
|
|
(7,345 |
) |
|
|
|
— |
|
Non cash accrued interest
income from receivable from affiliates |
|
|
70 |
|
|
|
|
65 |
|
Equity in earnings of
affiliates, net of dividends received |
|
|
17 |
|
|
|
|
1,040 |
|
EBITDA(1) |
|
$ |
15,313 |
|
|
|
$ |
30,911 |
|
Equity compensation
expense |
|
|
— |
|
|
|
|
614 |
|
Vessel impairment
losses |
|
|
7,345 |
|
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
22,658 |
|
|
|
$ |
31,525 |
|
Cash interest income |
|
|
216 |
|
|
|
|
118 |
|
Cash interest paid |
|
|
(9,698 |
) |
|
|
|
(8,121 |
) |
Maintenance and
replacement capital expenditures |
|
|
(7,474 |
) |
|
|
|
(6,062 |
) |
Operating
Surplus |
|
$ |
5,702 |
|
|
|
$ |
17,460 |
|
Cash reserves |
|
|
(2,338 |
) |
|
|
|
(14,040 |
) |
Available cash for
distribution |
|
$ |
3,364 |
|
|
|
$ |
3,420 |
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
Three Month Period Ended
March 31, 2019 (unaudited) |
|
|
Three Month Period Ended
March 31, 2018 (unaudited) |
Net cash provided by
operating activities |
$ |
10,483 |
|
|
$ |
6,427 |
|
Net cash used in investing
activities |
$ |
(5,375 |
) |
|
$ |
(16,635 |
) |
Net cash (used in)/
provided by financing activities |
$ |
(16,211 |
) |
|
$ |
25,936 |
|
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