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 third quarter and nine month
period ended September 30, 2020.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “I am pleased with our results
for the third quarter of 2020. During the third quarter, Navios
Partners reported adjusted EBITDA of $30.9 million and adjusted net
income of $8.8 million.”
Angeliki Frangou continued, “Drybulk demand in
the first half of 2020 suffered from the global shutdown. However,
fiscal stimulus and other policy measures helped economies heal in
the third quarter. We believe that this healing process continues
as we learn to live within the constraints of the pandemic and as
new purchasing patterns emerge. Looking forward, the economic
outlook for 2021 is favorable as the IMF expects global GDP to grow
by 5.2% and drybulk trade is projected to increase by 3.9%.”
Fleet Developments
- $51.0 million acquisition
of vessels
In September 2020, Navios Partners acquired the
Navios Gem, a 2014-Japanese built Capesize vessel of 181,336 dwt,
and the Navios Victory, a 2014-Japanese built Panamax vessel of
77,095 dwt, from Navios Maritime Holdings Inc. (“Navios Holdings”)
(NYSE:NM). The vessels were acquired for a purchase price of $51.0
million, including working capital adjustments.
-
$12.7 million sale of two
vessels
In October 2020, Navios Partners agreed to sell
the Esperanza N, a 2008-built Containership of 2,007 TEU and the
Navios Soleil, a 2009-built Ultra–Handymax vessel of 57,337 dwt for
net sale prices of $4.6 million and $8.2 million, respectively. The
Company is expected to recognize a book loss from the sale of these
two vessels of approximately $11.7 million, of which $1.8 million
has already been included in the third quarter of 2020. The sales
are expected to be completed by the end of January 2021.
Financing Arrangements
In September 2020, Navios Partners entered into
a new credit facility with a commercial bank for a total amount of
$33.0 million in order to finance the acquisition of the Navios Gem
and the Navios Victory. The credit facility has an amortization
profile of 9.7 years, matures in September 2025 and bears interest
at LIBOR plus 325 bps per annum.
Cash Distribution
The Board of Directors of Navios Partners
declared a cash distribution for the third quarter of 2020 of $0.05
per unit. The cash distribution is payable on November 13, 2020 to
all unitholders of record as of November 9, 2020. The declaration
and payment of any further dividends remain subject to the
discretion of the Board of Directors and will depend on, among
other things, Navios Partners’ cash requirements as measured by
market opportunities and restrictions under its credit agreements
and other debt obligations and such other factors as the Board of
Directors may deem advisable.
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 1.5 years. Navios Partners
has currently contracted out 98.7% of its available days for 2020,
45.5% for 2021 and 18.8% for 2022, including index-linked charters,
expecting to generate revenues (excluding index-linked charters) of
approximately $210.7 million, $98.1 million and $71.9 million,
respectively. The average contracted daily charter-out rate for the
fleet is $12,804, $20,820 and $28,632 for 2020, 2021 and 2022,
respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
condensed consolidated statements of operations for the three and
nine month periods ended September 30, 2020 and 2019. The quarterly
information was derived from the unaudited condensed consolidated
financial statements for the respective periods. Adjusted EBITDA,
Adjusted Earnings/ (Loss) per Common Unit, Adjusted Net Income/
(Loss) 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 |
Nine Month |
Nine Month |
|
Period Ended |
Period Ended |
Period Ended |
Period Ended |
|
September 30,
2020 |
September 30,
2019 |
September 30,
2020 |
September 30,
2019 |
(in $‘000 except per
unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenue |
$ |
64,499 |
|
$ |
63,548 |
|
$ |
157,538 |
|
|
$ |
158,111 |
|
Net Income/ (Loss) |
$ |
6,991 |
|
$ |
16,859 |
|
$ |
(18,374 |
) |
|
$ |
813 |
|
Adjusted Net Income/
(Loss) |
$ |
8,771 |
(1) |
$ |
18,273 |
(2) |
$ |
(2,894 |
) |
(3) |
$ |
14,694 |
(4) |
Net cash provided by operating
activities |
$ |
21,025 |
|
$ |
32,669 |
|
$ |
68,700 |
|
|
$ |
47,095 |
|
EBITDA |
$ |
29,143 |
|
$ |
41,309 |
|
$ |
48,814 |
|
|
$ |
75,321 |
|
Adjusted EBITDA |
$ |
30,923 |
(1) |
$ |
41,309 |
|
$ |
64,294 |
|
(3) |
$ |
86,304 |
(5) |
Earnings/ (Loss) per Common
Unit (basic and diluted) |
$ |
0.63 |
|
$ |
1.54 |
|
$ |
(1.65 |
) |
|
$ |
0.07 |
|
Adjusted Earnings/ (Loss) per
Common Unit (basic and diluted) |
$ |
0.78 |
(1) |
$ |
1.67 |
(2) |
$ |
(0.26 |
) |
(3) |
$ |
1.33 |
(4) |
Operating Surplus |
$ |
16,011 |
|
$ |
25,726 |
|
$ |
19,314 |
|
|
$ |
37,635 |
|
Maintenance and Replacement
Capital Expenditure Reserve |
$ |
9,491 |
|
$ |
7,153 |
|
$ |
26,670 |
|
|
$ |
21,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA, Adjusted Net Income and
Adjusted Earnings per Common Unit for the three month period ended
September 30, 2020 have been adjusted to exclude a $1.8 million
impairment loss related to the sale of one of our vessels.
(2) Adjusted Net Income and Adjusted Earnings
per Common Unit for the three month period ended September 30, 2019
have been adjusted to exclude a $1.4 million write-off of deferred
finance fees and discount related to prepayments of the Term Loan B
Facility in the third quarter of 2019.
(3) Adjusted EBITDA, Adjusted Net Loss and
Adjusted Loss per Common Unit for the nine month period ended
September 30, 2020 have been adjusted to exclude a $6.9 million
loss related to the other-than-temporary impairment recognized in
the Navios Partners’ receivable from Navios Europe II, a $6.8
million impairment loss related to three containerships and a $1.8
million impairment loss relating to the sale of one of our
vessels.
(4) Adjusted Net Income and Adjusted Earnings
per Common Unit for the nine month period ended September 30, 2019
have been adjusted to exclude a $7.3 million impairment loss
related to the sale of one of our vessels, a $3.6 million revision
of the estimated guarantee claim receivable and a $2.9 million
write-off of deferred finance fees and discount related to
prepayments of the Term Loan B Facility.
(5) Adjusted EBITDA for the nine month period
ended September 30, 2019 has been adjusted to exclude a $7.3
million impairment loss related to the sale of one of our vessels
and a $3.6 million revision of the estimated guarantee claim
receivable.
Three month periods
ended September
30,
2020 and
2019
Time charter and voyage revenues for the three
month period ended September 30, 2020 increased by
$1.0 million, or 1.5%, to $64.5 million, as compared to
$63.5 million for the same period in 2019. The increase in
time charter and voyage revenues was mainly attributable to the
increase in the size of our fleet. For the three month period ended
September 30, 2020, the time charter equivalent rate, or TCE rate,
decreased to $13,652 per day, in relation to $18,778 per day which
was for the three month period ended September 30, 2019. The
available days of the fleet increased to 4,499 days for the three
month period ended September 30, 2020, as compared to 3,240 days
for the three month period ended September 30, 2019.
EBITDA for the three month period ended
September 30, 2020 was negatively affected by the accounting
effect of a $1.8 million impairment loss related to the sale of one
of our vessels. Excluding this item, Adjusted EBITDA decreased by
$10.4 million to $30.9 million for the three month period ended
September 30, 2020, as compared to $41.3 million for the same
period in 2019. The decrease in Adjusted EBITDA was primarily due
to a: (i) $0.9 million increase in time charter voyage expenses;
(ii) $7.6 million increase in vessel operating expenses, mainly due
to the increased fleet; (iii) $0.8 million increase in general and
administrative expenses, mainly due to the increased fleet; (iv)
$0.3 million increase in other expenses; and (v) $1.7 million
decrease in equity in net earnings of affiliated companies. The
above decrease was partially mitigated by a: (i) $1.0 million
increase in time charter and voyage revenues; and (ii) $0.1 million
increase in other income.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
September 30, 2020 and 2019 were $9.5 million and $7.2 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 September 30, 2020 of $16.0
million, as compared to $25.7 million for the three month
period ended September 30, 2019. Operating Surplus is a non-GAAP
financial measure used by certain investors to assist in evaluating
a partnership’s ability to make quarterly cash distributions
(please see “Reconciliation of Non-GAAP Financial Measures” in
Exhibit 3).
Net Income for the three month period ended
September 30, 2020 was negatively affected by the accounting
effect of a $1.8 million impairment loss related to the sale of one
of our vessels. Net Income for the three month period ended
September 30, 2019 was negatively affected by the accounting effect
of a $1.4 million write-off of deferred finance fees and discount
related to prepayments of the Term Loan B Facility in the third
quarter of 2019. Excluding these items, Adjusted Net Income for the
three month period ended September 30, 2020 amounted to $8.8
million compared to $18.3 million income for the three month period
ended September 30, 2019. The decrease in Adjusted Net Income of
$9.5 million was due to a: (i) $10.4 million decrease in Adjusted
EBITDA; (ii) $1.0 million increase in direct vessel expenses; (iii)
$1.0 million increase in depreciation and amortization expense; and
(iv) $1.7 million decrease in interest income. The above decrease
was partially mitigated by a $4.6 million decrease in interest
expense and finance cost, net.
Nine month periods
ended September
30, 2020 and
2019
Time charter and voyage revenues for the nine
month period ended September 30, 2020 decreased by $0.6 million, or
0.4%, to $157.5 million, as compared to $158.1 million for the same
period in 2019. The decrease in time charter and voyage revenues
was mainly attributable to the decrease in the TCE rate to $11,917
per day for the nine month period ended September 30, 2020 from
$15,369 per day for the nine month period ended September 30, 2019.
The available days of the fleet increased to 12,625 days for the
nine month period ended September 30, 2020, as compared to 9,720
days for the nine month period ended September 30, 2019, mainly due
to the increase in the size of the fleet.
EBITDA for the nine month period ended
September 30, 2020 was negatively affected by the accounting
effect of a: (i) $6.9 million loss related to the
other-than-temporary impairment recognized in the Navios Partners’
receivable from Navios Europe II; (ii) $6.8 million impairment loss
related to three containerships; and (iii) $1.8 million impairment
loss related to the sale of one of our vessels. EBITDA for the nine
month period ended September 30, 2019 was negatively affected by
the accounting effect of a: (i) $7.3 million impairment loss
related to the sale of one of our vessels; and (ii) $3.6 million
revision of the estimated guarantee claim receivable. Excluding
these items, Adjusted EBITDA decreased by $22.0 million to $64.3
million for the nine month period ended September 30, 2020, as
compared to $86.3 million for the same period in 2019. The decrease
in Adjusted EBITDA was primarily due to (i) a $0.6 million decrease
in time charter and voyage revenues; (ii) an $18.6 million increase
in vessel operating expenses, mainly due to the increased fleet;
(iii) a $1.4 million increase in general and administrative
expenses, mainly due to the increased fleet; (iv) a $2.2 million
increase in other expenses; and (v) a $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 time
charter and voyage expenses; and (ii) $1.6 million increase in
other income.
The reserves for estimated maintenance and
replacement capital expenditures for the nine month periods ended
September 30, 2020 and 2019 were $26.7 million and $21.9 million,
respectively (please see “Reconciliation of Non-GAAP Financial
Measures” in Exhibit 3).
Navios Partners generated an operating surplus
for the nine month period ended September 30, 2020 of
$19.3 million, as compared to $37.6 million for the nine
month period ended September 30, 2019. 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 nine month period ended
September 30, 2020 was negatively affected by the accounting effect
of a: (i) $6.9 million loss related to the other-than-temporary
impairment recognized in the Navios Partners’ receivable from
Navios Europe II; (ii) $6.8 million impairment loss related to
three containerships; and (iii) $1.8 million impairment loss
related to the sale of one of our vessels. Net Income for the nine
month period ended September 30, 2019 was negatively affected by
the accounting effect of a: (i) $7.3 million impairment loss
related to the sale of one of our vessels; (ii) $3.6 million
revision of the estimated guarantee claim receivable; and (iii)
$2.9 million write-off of deferred finance fees and discount
related to prepayments of the Term Loan B Facility in the nine
month period ended September 30, 2019. Excluding these items,
Adjusted Net Loss for the nine month period ended September 30,
2020 amounted to $2.9 million compared to $14.7 million income for
the nine month period ended September 30, 2019. The increase in
Adjusted Net Loss of $17.6 million was due to a: (i) $22.0 million
decrease in adjusted EBITDA; (ii) $2.8 million increase in direct
vessel expenses; (iii) $1.6 million increase in depreciation and
amortization expense; and (iv) $4.9 million decrease in interest
income. The above increase was partially mitigated by a $13.7
million decrease 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 nine month periods ended September 30, 2020 and 2019.
|
|
Three Month Period Ended
September 30, 2020
(unaudited) |
|
Three Month Period Ended
September 30, 2019
(unaudited) |
|
Nine Month Period
Ended
September 30, 2020
(unaudited) |
|
Nine Month Period
Ended
September 30, 2019
(unaudited) |
Available Days(1) |
|
4,499 |
|
|
3,240 |
|
|
12,625 |
|
|
|
9,720 |
|
Operating Days(2) |
|
4,472 |
|
|
3,189 |
|
|
12,465 |
|
|
|
9,586 |
|
Fleet Utilization(3) |
|
99.4 |
% |
|
98.4 |
% |
|
98.7 |
% |
|
|
98.6 |
% |
Time Charter Equivalent Combined
(per day) (4) |
$ |
13,652 |
|
$ |
18,778 |
|
$ |
11,917 |
|
|
$ |
15,369 |
|
Time Charter Equivalent Drybulk
(per day) (4) |
$ |
12,955 |
|
$ |
16,817 |
|
$ |
10,316 |
|
|
$ |
12,880 |
|
Time Charter Equivalent
Containers (per day) (4) |
$ |
16,690 |
|
$ |
30,631 |
|
$ |
17,993 |
|
|
$ |
30,605 |
|
Vessels operating at period
end |
|
53 |
|
|
37 |
|
|
53 |
|
|
|
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. 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. Operating days include ballast
days between voyages. 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 Thursday, November 5, 2020 to discuss the
results for the third quarter and nine month period ended September
30, 2020.
Call Date/Time: Thursday, November 5, 2020 at 8:30 am
ET Call Title: Navios Partners Q3 2020 Financial Results
Conference Call US Dial In: +1.866.394.0817 International
Dial In: +1.706.679.9759 Conference ID: 654 8605
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: 654 8605
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
at www.navios-mlp.com under the "Investors" section at
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, its
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.
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 risks and are based upon a
number of assumptions and estimates that 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, risks relating
to: global and regional economic and political conditions including
the impact of the COVID-19 pandemic and efforts
throughout the world to contain its spread, including effects on
global economic activity, demand for seaborne transportation of the
products we ship, the ability and willingness of charterers to
fulfill their obligations to us and prevailing charter rates,
shipyards performing scrubber installations, drydocking and
repairs, changing vessel crews and availability of financing;
potential disruption of shipping routes due to accidents, diseases,
pandemics, political events, piracy or acts by terrorists,
including the impact of the COVID-19 pandemic and the
ongoing efforts throughout the world to contain it; 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)
|
September
30,
2020(unaudited) |
|
December 31,2019(unaudited) |
ASSETS |
|
|
|
|
Cash and cash equivalents, including restricted cash |
$ |
30,615 |
|
$ |
30,402 |
Other current assets |
|
36,522 |
|
|
45,588 |
Vessels, net |
|
1,122,535 |
|
|
1,062,258 |
Other non-current assets |
|
108,043 |
|
|
115,269 |
Total
assets |
$ |
1,297,715 |
|
$ |
1,253,517 |
LIABILITIES AND PARTNERS’
CAPITAL |
|
|
|
|
|
Other current liabilities |
$ |
72,436 |
|
$ |
20,004 |
Total borrowings, net (including
current and non-current) |
|
505,672 |
|
|
489,028 |
Other non-current
liabilities |
|
14,757 |
|
|
16,466 |
Total partners’ capital |
|
704,850 |
|
|
728,019 |
Total liabilities and
partners’ capital |
$ |
1,297,715 |
|
$ |
1,253,517 |
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS(Expressed in thousands of U.S. Dollars except
unit and per unit data)
|
Three MonthPeriod EndedSeptember 30,
2020(unaudited) |
|
Three MonthPeriod EndedSeptember 30,
2019(unaudited) |
|
|
Nine MonthPeriod EndedSeptember 30,
2020(unaudited) |
|
|
Nine MonthPeriod EndedSeptember 30,
2019(unaudited) |
|
Time charter and voyage revenues |
$ |
64,499 |
|
|
$ |
63,548 |
|
|
$ |
157,538 |
|
|
$ |
158,111 |
|
Time charter and voyage
expenses |
|
(3,609 |
) |
|
|
(2,708 |
) |
|
|
(8,647 |
) |
|
|
(8,721 |
) |
Direct vessel expenses |
|
(2,736 |
) |
|
|
(1,710 |
) |
|
|
(7,670 |
) |
|
|
(4,823 |
) |
Vessel operating expenses
(management fees) |
|
(24,289 |
) |
|
|
(16,695 |
) |
|
|
(68,424 |
) |
|
|
(49,801 |
) |
General and administrative
expenses |
|
(4,716 |
) |
|
|
(3,897 |
) |
|
|
(15,844 |
) |
|
|
(14,425 |
) |
Depreciation and
amortization |
|
(14,153 |
) |
|
|
(13,171 |
) |
|
|
(41,453 |
) |
|
|
(39,903 |
) |
Vessels impairment loss |
|
(1,780 |
) |
|
|
— |
|
|
|
(8,580 |
) |
|
|
(7,345 |
) |
Impairment of receivable in
affiliated company |
|
— |
|
|
|
— |
|
|
|
(6,900 |
) |
|
|
— |
|
Interest expense and finance
cost, net |
|
(5,417 |
) |
|
|
(11,432 |
) |
|
|
(18,636 |
) |
|
|
(35,192 |
) |
Interest income |
|
143 |
|
|
|
1,858 |
|
|
|
514 |
|
|
|
5,392 |
|
Other income |
|
161 |
|
|
|
105 |
|
|
|
2,344 |
|
|
|
696 |
|
Other expense |
|
(730 |
) |
|
|
(403 |
) |
|
|
(3,202 |
) |
|
|
(4,725 |
) |
Equity in net (loss)/ earnings of
affiliated companies |
|
(382 |
) |
|
|
1,364 |
|
|
|
586 |
|
|
|
1,549 |
|
Net
income/ (loss) |
$ |
6,991 |
|
|
$ |
16,859 |
|
|
$ |
(18,374 |
) |
|
$ |
813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/ (loss) per unit:
|
Three MonthPeriod EndedSeptember 30,
2020(unaudited) |
|
Three MonthPeriod EndedSeptember 30,
2019(unaudited) |
|
Nine MonthPeriod EndedSeptember
30, 2020(unaudited) |
|
|
Nine MonthPeriod EndedSeptember 30,
2019(unaudited) |
Earnings/ (loss) per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
Common unit (basic and
diluted) |
$ |
0.63 |
|
$ |
1.54 |
|
$ |
(1.65 |
) |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P.Other
Financial
Information(Expressed in
thousands of U.S. Dollars except unit data)
|
Nine
MonthPeriod
EndedSeptember 30,
2020(unaudited) |
|
Nine Month Period
EndedSeptember 30,
2019(unaudited) |
Net cash provided by operating activities |
$ |
68,700 |
|
|
$ |
47,095 |
|
Net cash used in investing
activities |
|
(78,346 |
) |
|
|
(6,884 |
) |
Net cash provided by/ (used in)
financing activities |
|
9,859 |
|
|
|
(75,671 |
) |
Increase/
(decrease) in
cash, cash equivalents and restricted cash |
$ |
213 |
|
|
$ |
(35,460 |
) |
|
|
|
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 Amaryllis |
|
Ultra-Handymax |
|
2008 |
|
58,735 |
Serenitas N |
|
Ultra-Handymax |
|
2011 |
|
56,644 |
Joie N |
|
Ultra-Handymax |
|
2011 |
|
56,557 |
Navios Hyperion |
|
Panamax |
|
2004 |
|
75,707 |
Navios Alegria |
|
Panamax |
|
2004 |
|
76,466 |
Navios Orbiter |
|
Panamax |
|
2004 |
|
76,602 |
Navios Anthos |
|
Panamax |
|
2004 |
|
75,798 |
Navios Azalea |
|
Panamax |
|
2005 |
|
74,759 |
Navios Camelia |
|
Panamax |
|
2009 |
|
75,162 |
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 |
Copernicus N |
|
Panamax |
|
2010 |
|
93,062 |
Unity N |
|
Panamax |
|
2011 |
|
79,642 |
Odysseus N |
|
Panamax |
|
2011 |
|
79,642 |
Navios Victory |
|
Panamax |
|
2014 |
|
77,095 |
Navios Gem |
|
Capesize |
|
2014 |
|
181,336 |
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 |
|
|
|
|
|
|
|
Bareboat Chartered-in
vessel |
|
Type |
|
Built |
|
Capacity(DWT) |
|
Purchase Option |
Navios
Libra |
|
Panamax |
|
2019 |
|
82,011 |
|
Yes |
|
|
|
|
|
|
|
|
|
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 |
Castor N |
|
Containership |
|
2007 |
|
3,091 |
Esperanza N |
|
Containership |
|
2008 |
|
2,007 |
Harmony N |
|
Containership |
|
2006 |
|
2,824 |
Protostar N |
|
Containership |
|
2007 |
|
2,741 |
Solar N |
|
Containership |
|
2006 |
|
3,398 |
|
|
|
|
|
|
|
Bareboat Chartered-in
vessels to be delivered |
|
Type |
|
Built |
|
Capacity(DWT) |
|
Purchase Option |
TBN1 |
|
Panamax |
|
2021 |
|
81,000 |
|
Yes |
TBN2 |
|
Panamax |
|
2021 |
|
81,000 |
|
Yes |
|
|
|
|
|
|
|
|
|
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 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 increase in operating liabilities; (iii) net
interest cost; (iv) amortization and write-off of deferred
financing cost; (v) equity in net earnings of affiliates, net
of dividends received; (vi) impairment charges;
(vii) non-cash accrued interest income and amortization of
deferred revenue; (viii) equity compensation expense; (ix)
non-cash accrued interest income from receivable from affiliates;
and (x) amortization of operating lease right-of-use asset. 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, non-cash interest income, 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 EndedSeptember 30, 2020($
‘000)(unaudited) |
|
Three MonthPeriod EndedSeptember
30, 2019($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2020($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember 30, 2019($
‘000)(unaudited) |
Net cash provided by operating activities |
$ |
21,025 |
|
|
$ |
32,669 |
|
|
$ |
68,700 |
|
|
$ |
47,095 |
|
Net decrease/ (increase) in
operating assets |
|
11,794 |
|
|
|
(2,058 |
) |
|
|
8,027 |
|
|
|
3,844 |
|
Net increase in operating
liabilities |
|
(6,152 |
) |
|
|
(174 |
) |
|
|
(29,333 |
) |
|
|
(354 |
) |
Net interest cost |
|
5,274 |
|
|
|
9,574 |
|
|
|
18,122 |
|
|
|
29,800 |
|
Amortization and write-off of
deferred financing cost |
|
(552 |
) |
|
|
(2,625 |
) |
|
|
(1,570 |
) |
|
|
(7,258 |
) |
Amortization of operating
lease right-of-use asset |
|
(244 |
) |
|
|
(158 |
) |
|
|
(703 |
) |
|
|
(158 |
) |
Non cash accrued interest income
and amortization of deferred revenue |
|
400 |
|
|
|
3,168 |
|
|
|
1,188 |
|
|
|
9,471 |
|
Equity compensation expense |
|
(240 |
) |
|
|
(524 |
) |
|
|
(723 |
) |
|
|
(1,537 |
) |
Vessels impairment loss |
|
(1,780 |
) |
|
|
— |
|
|
|
(8,580 |
) |
|
|
(7,345 |
) |
Impairment of receivable in
affiliated company |
|
— |
|
|
|
— |
|
|
|
(6,900 |
) |
|
|
— |
|
Non cash accrued interest income
from receivable from affiliates |
|
— |
|
|
|
73 |
|
|
|
— |
|
|
|
214 |
|
Equity in net earnings of
affiliates, net of dividends received |
|
(382 |
) |
|
|
1,364 |
|
|
|
586 |
|
|
|
1,549 |
|
EBITDA(1) |
$ |
29,143 |
|
|
$ |
41,309 |
|
|
$ |
48,814 |
|
|
$ |
75,321 |
|
Revision of estimated guarantee
claim receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,638 |
|
Impairment of receivable in
affiliated company |
|
— |
|
|
|
— |
|
|
|
6,900 |
|
|
|
— |
|
Vessels impairment loss |
|
1,780 |
|
|
|
— |
|
|
|
8,580 |
|
|
|
7,345 |
|
Adjusted
EBITDA |
$ |
30,923 |
|
|
$ |
41,309 |
|
|
$ |
64,294 |
|
|
$ |
86,304 |
|
Cash interest income |
|
37 |
|
|
|
127 |
|
|
|
201 |
|
|
|
499 |
|
Cash interest paid |
|
(5,458 |
) |
|
|
(8,557 |
) |
|
|
(18,511 |
) |
|
|
(27,281 |
) |
Maintenance and replacement
capital expenditures |
|
(9,491 |
) |
|
|
(7,153 |
) |
|
|
(26,670 |
) |
|
|
(21,887 |
) |
Operating
surplus |
$ |
16,011 |
|
|
$ |
25,726 |
|
|
$ |
19,314 |
|
|
$ |
37,635 |
|
Cash distribution paid relating
to the first half |
|
— |
|
|
|
— |
|
|
|
(3,926 |
) |
|
|
(6,728 |
) |
Cash reserves |
|
(15,432 |
) |
|
|
(22,362 |
) |
|
|
(14,809 |
) |
|
|
(27,543 |
) |
Available cash for
distribution |
$ |
579 |
|
|
$ |
3,364 |
|
|
$ |
579 |
|
|
$ |
3,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Period Ended
September 30, 2020
($ ‘000) (unaudited) |
|
|
|
Three Month
Period Ended September
30, 2019 ($ ‘000)
(unaudited) |
|
|
|
Nine Month Period Ended
September 30, 2020
($ ‘000) (unaudited) |
|
|
|
Nine Month Period Ended
September 30, 2019
($ ‘000) (unaudited) |
|
Net cash provided by operating
activities |
$ |
21,025 |
|
|
$ |
32,669 |
|
|
$ |
68,700 |
|
|
$ |
47,095 |
|
Net cash used in investing
activities |
$ |
(38,682 |
) |
|
$ |
(5,248 |
) |
|
$ |
(78,346 |
) |
|
$ |
(6,884 |
) |
Net cash provided by/ (used
in) financing activities |
$ |
18,457 |
|
|
$ |
(36,646 |
) |
|
$ |
9,859 |
|
|
$ |
(75,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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