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
months ended September 30, 2019.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners, stated, “I am pleased with the strong
financial results for the third quarter of 2019. Navios Partners
reported $41.3 million in EBITDA, $16.9 million in Net Income and
$1.67 in Earnings per Unit. Navios Partners also declared a
quarterly distribution of $0.30 cents per unit, representing a
current yield of approximately 6%.”
Angeliki Frangou continued, “Following the
refinancing of its Term Loan B, Navios Partners has a strong
balance sheet and is competitively positioned in a healthy charter
market. Navios Partners earned a TCE rate of $18,778 per day for
the third quarter, and virtually all of our 37 vessels are on the
water generating revenue.”
Cash Distribution
The Board of Directors of Navios Partners
declared a cash distribution for the third quarter of 2019 of $0.30
per unit. The cash distribution is payable on November 14, 2019 to
all unitholders of record as of November 7, 2019.
Term Loan B Refinancing
In October 2019, Navios Partners fully repaid
its Term Loan B due in September 2020. The outstanding balance of
the Term Loan B at December 31, 2018 was $418.5 million. Navios
Partners funded the refinancing as follows:
- $301.3 million financing from
commercial banks, with an average (a) amortization profile of 7.1
years and (b) annual interest of LIBOR plus 290 bps;
- $49.5 million financing through
sale and leaseback transactions. The sale and leaseback
transactions have an average (a) duration of 9.4 years and (b)
implied interest rate of 6.4%. There are no financial covenants or
loan-to-value requirements in the sale and leaseback transactions;
and
- $67.7 million from cash on the balance sheet.
As a result of the refinancing, Navios Partners
has diversified and extended the maturities of its debt through
2030. Furthermore, there are no debt maturities until the third
quarter of 2021.
Amendment of the Management Agreement
and the Administrative Services Agreement
In August 2019, Navios Partners extended the
duration of its existing management agreement (the “Management
Agreement”) with Navios Ship Management Inc. (the “Manager”) until
January 1, 2025. In addition management fees are fixed for two
years commencing from January 1, 2020 at: (a) $4,450 per day per
Panamax Vessel; (b) $4,350 per day per Ultra-Handymax Vessel; (c)
$5,410 per day per Capesize Vessel; and (d) $6,900 per day per
6,800 TEU Containership. The agreement also provides for a
technical and commercial management fee of $50 per day per vessel
and an annual increase of 3% after January 1, 2022 unless agreed
otherwise. Drydocking expenses are reimbursed at cost for all
vessels.
In August 2019, Navios Partners extended the
duration of its existing administrative services agreement with the
Manager until January 1, 2025, which provide for allocable G&A
costs.
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 96.6% of its available days for 2019,
49.1% for 2020 and 37.9% for 2021, including index-linked charters,
expecting to generate revenues (excluding index-linked charters) of
approximately $183.7 million, $86.3 million and $81.9 million,
respectively. The average contracted daily charter-out rate for the
fleet is $15,171, $26,220 and $28,031 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 and nine month
periods ended September 30, 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 |
Nine Month |
Nine Month |
| |
Period Ended |
Period Ended |
Period Ended |
Period Ended |
| |
September 30,2019 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
| (in $‘000 except per
unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
Revenue |
$ |
63,548 |
|
$ |
62,571 |
|
$ |
158,111 |
|
$ |
173,819 |
|
|
| Net Income/ (Loss) |
$ |
16,859 |
|
$ |
10,457 |
|
$ |
813 |
|
$ |
(13,598 |
) |
|
| Adjusted Net Income |
$ |
18,273 |
(1) |
$ |
16,342 |
(2) |
$ |
14,694 |
(4) |
$ |
31,591 |
|
(5) |
| Net cash provided by operating
activities |
$ |
32,669 |
|
$ |
19,394 |
|
$ |
47,095 |
|
$ |
50,648 |
|
|
| EBITDA |
$ |
41,309 |
|
$ |
36,096 |
|
$ |
75,321 |
|
$ |
63,182 |
|
|
| Adjusted EBITDA |
$ |
41,309 |
|
$ |
41,981 |
(2) |
$ |
86,304 |
(3) |
$ |
108,162 |
|
(6) |
| Earnings/ (Loss) per Common
Unit (basic and diluted) |
$ |
1.54 |
|
$ |
0.93 |
|
$ |
0.07 |
|
$ |
(1.18 |
) |
|
| Adjusted Earnings per Common
Unit (basic and diluted) |
$ |
1.67 |
(1) |
$ |
1.46 |
(2) |
$ |
1.33 |
(4) |
$ |
2.85 |
|
(5) |
| Operating Surplus |
$ |
25,726 |
|
$ |
25,791 |
|
$ |
37,635 |
|
$ |
63,034 |
|
|
| Maintenance and Replacement
Capital Expenditure Reserve |
$ |
7,153 |
|
$ |
7,399 |
|
$ |
21,887 |
|
$ |
19,818 |
|
|
|
(1) |
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. |
|
|
|
|
(2) |
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per
Common Unit for the three month period ended September 30, 2018
have been adjusted to exclude a $5.3 million impairment loss
related to the sale of one of our vessels and a $0.6 million equity
compensation expense. |
|
|
|
|
(3) |
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. |
|
|
|
|
(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 Net Income and Adjusted Earnings per Common Unit for the
nine month period ended September 30, 2018 have been adjusted to
exclude a $43.1 million impairment loss related to the sale of
three of our vessels, a $1.9 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. |
|
|
|
|
(6) |
Adjusted EBITDA for the nine month period ended September 30, 2018
has been adjusted to exclude a $43.1 million impairment loss
related to the sale of three of our vessels and a $1.9 million
equity compensation expense. |
|
|
|
Three month periods ended September 30,
2019 and 2018
Time charter and voyage revenues for the three
month period ended September 30, 2019 increased by
$1.0 million, or 1.6%, to $63.5 million, as compared to
$62.6 million for the same period in 2018. The increase in
time charter and voyage revenues was mainly attributable to the
increase in the time charter equivalent rate, or TCE rate, to
$18,778 per day for the three month period ended September 30,
2019, from $17,606 per day for the three month period ended
September 30, 2018 and the delivery of the Navios Libra in July
2019. That increase was partially mitigated by the decrease in
revenue due to the sale of the Navios Felicity and the Navios Libra
II in December 2018 and the Navios Galaxy I in April 2019. The
available days of the fleet decreased to 3,240 days for the three
month period ended September 30, 2019, as compared to 3,428 days
for the three month period ended September 30, 2018, mainly due to
the decrease of the size of the fleet.
EBITDA for the three month period ended
September 30, 2018 was negatively affected by the accounting effect
of a: (i) $5.3 million impairment loss on the sale of the Navios
Felicity; and (ii) $0.6 million equity compensation expense.
Excluding these items, Adjusted EBITDA decreased by $0.7 million to
$41.3 million for the three month period ended September 30, 2019,
as compared to $42.0 million for the same period in 2018. The
decrease in Adjusted EBITDA was primarily due to a: (i) $0.5
million increase in time charter and voyage expenses; (ii) $1.0
million increase in general and administrative expenses; (iii) $0.6
million decrease in equity in net earnings of affiliated companies
and (iv) $0.1 million decrease in other income. The above decrease
was partially mitigated by a: (i) $1.0 million increase in revenue;
and (ii) $0.5 million decrease in management fees.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
September 30, 2019 and 2018 were $7.2 million and $7.4 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, 2019 of $25.7
million, as compared to $25.8 million for the three month
period ended September 30, 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 Income for the three month period ended
September 30, 2019 was negatively affected by the accounting effect
of a: (i) $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. Net Income of Navios Partners for the three
month period ended September 30, 2018 was negatively affected by
the accounting effect of a: (i) $5.3 million impairment loss on the
sale of the Navios Felicity; and (ii) $0.6 million equity
compensation expense. Excluding these items, Adjusted Net Income
for the three month period ended September 30, 2019 amounted to
$18.3 million compared to $16.3 million income for the three month
period ended September 30, 2018. The increase in Adjusted Net
Income of $1.9 million was due to a: (i) $1.4 million decrease in
depreciation and amortization expense; (ii) $0.7 million increase
in interest income and (iii) a $0.7 million decrease in interest
expense and finance cost, net. The above increase was partially
mitigated by a: (i) 0.7 million decrease in Adjusted EBITDA; and
(ii) $0.2 million increase in direct vessel expenses.
Nine month periods ended September 30,
2019 and 2018
Time charter and voyage revenues for the nine
month period ended September 30, 2019 decreased by
$15.7 million, or 9.0%, to $158.1 million, as compared to
$173.8 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, the Navios Felicity and the Navios Libra II in
December 2018 and the Navios Galaxy I in April 2019; and (ii) the
decrease in the TCE rate, to $15,369 per day for the nine month
period ended September 30, 2019, from $16,745 per day for the nine
month period ended September 30, 2018. That decrease was partially
mitigated by the increase in revenue following the acquisition of
the Navios Mars and the Navios Sphera in August 2018, the Navios
Apollon I, the Navios Prosperity I and the Navios Libertas in June
2018 and the delivery of the Navios Libra in July 2019. The
available days of the fleet decreased to 9,720 days for the nine
month period ended September 30, 2019, as compared to 9,980 days
for the nine month period ended September 30, 2018.
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 on the sale of the Navios Galaxy I;
and (ii) $3.6 million revision of the estimated guarantee claim
receivable. EBITDA for the nine month period ended September 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) $5.3 million impairment loss on the sale of the
Navios Felicity; and (iii) $1.9 million equity compensation
expense. Excluding these items, Adjusted EBITDA decreased by $21.8
million to $86.3 million for the nine month period ended September
30, 2019, as compared to $108.2 million for the same period in
2018. The decrease in Adjusted EBITDA was primarily due to a: (i)
$15.7 million decrease in revenue; (ii) $2.0 million increase in
time charter and voyage expenses; (iii) $3.8 million increase in
general and administrative expenses; (iv) $3.1 million decrease in
equity in net earnings of affiliated companies; and (v) $0.2
million decrease in other income. The above decrease was partially
mitigated by a: (i) $1.5 million decrease in management fees; and
(ii) $1.4 million decrease in other expenses.
The reserves for estimated maintenance and
replacement capital expenditures for the nine month periods ended
September 30, 2019 and 2018 were $21.9 million and $19.8 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, 2019 of
$37.6 million, as compared to $63.0 million for the nine
month period ended September 30, 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 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 on the sale of the Navios
Galaxy I; (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. Net
loss for the nine month period ended September 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) $5.3 million impairment loss on the sale of the Navios
Felicity; (iii) $1.9 million equity compensation expense; and (iv)
$0.2 million write-off of deferred finance fees. Excluding these
items, Adjusted Net Income / Loss for the nine month period ended
September 30, 2019 amounted to $14.7 million compared to $31.6
million for the nine month period ended September 30, 2018. The
decrease in Adjusted Net Income of $16.9 million was due to a: (i)
$21.8 million decrease in adjusted EBITDA; (ii) $1.1 million
increase in interest expense and finance cost, net and (iii) $0.1
million increase in direct vessel expenses. The above decrease was
partially mitigated by a: (i) $3.9 million decrease in depreciation
and amortization expense; and (ii) $2.3 million increase in
interest income.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
and nine month periods ended September 30, 2019 and 2018.
| |
|
|
|
|
|
|
|
| |
Three Month Period
Ended September 30,
2019 (unaudited) |
|
Three Month Period
Ended September 30,
2018 (unaudited) |
|
Nine Month Period
Ended September 30,
2019 (unaudited) |
|
Nine Month Period
Ended September 30,
2018 (unaudited) |
|
Available Days(1) |
|
3,240 |
|
|
3,428 |
|
|
9,720 |
|
|
9,980 |
| Operating Days(2) |
|
3,189 |
|
|
3,389 |
|
|
9,586 |
|
|
9,875 |
| Fleet Utilization(3) |
|
98.4% |
|
|
98.9% |
|
|
98.6% |
|
|
98.9% |
| Time Charter Equivalent Combined
(per day) (4) |
$ |
18,778 |
|
$ |
17,606 |
|
$ |
15,369 |
|
$ |
16,745 |
| Time Charter Equivalent Drybulk
(per day) (4) |
$ |
16,817 |
|
$ |
15,559 |
|
$ |
12,880 |
|
$ |
13,658 |
| Time Charter Equivalent
Containerships (per day) (4) |
$ |
30,631 |
|
$ |
30,687 |
|
$ |
30,605 |
|
$ |
31,458 |
| Vessels operating at period
end |
|
37 |
|
|
39 |
|
|
37 |
|
|
39 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
(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 Thursday, October 31, 2019 to discuss the
results for the third quarter and nine month period ended September
30, 2019.
Call Date/Time: Thursday, October 31, 2019 at 8:30 am ET Call
Title: Navios Partners Q3 2019 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 917 7436
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: 917 7436
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, 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: 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, 2019
(unaudited) |
|
December 31,2018
(unaudited) |
| ASSETS |
|
|
|
|
Cash and cash equivalents, including restricted cash |
$ |
25,995 |
|
$ |
61,455 |
| Vessels, net |
1,002,551 |
|
1,043,250 |
| Other assets (including current
and non-current) |
223,411 |
|
205,096 |
| Intangible assets |
3,457 |
|
4,332 |
| Total
assets |
$ |
1,255,414 |
|
$ |
1,314,133 |
| LIABILITIES AND PARTNERS’
CAPITAL |
|
|
|
| Other current liabilities |
$ |
18,697 |
|
$ |
25,529 |
| Current portion of long-term
borrowings, net |
64,746 |
|
26,804 |
| Long-term borrowings, net of
current portion |
390,519 |
|
480,681 |
| Other non-current
liabilities |
17,026 |
|
4,366 |
| Total partners’ capital |
764,426 |
|
776,753 |
| Total liabilities and
partners’ capital |
$ |
1,255,414 |
|
$ |
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 September 30, 2019
(unaudited) |
|
Three Month Period Ended September 30, 2018
(unaudited) |
|
Nine Month Period Ended September 30, 2019
(unaudited) |
|
Nine Month Period Ended September 30, 2018
(unaudited) |
|
Time charter and voyage revenues |
$ |
63,548 |
|
|
$ |
62,571 |
|
|
$ |
158,111 |
|
|
$ |
173,819 |
|
| Time charter and voyage
expenses |
(2,708 |
) |
|
(2,217 |
) |
|
(8,721 |
) |
|
(6,705 |
) |
| Direct vessel expenses |
(1,710 |
) |
|
(1,516 |
) |
|
(4,823 |
) |
|
(4,685 |
) |
| Management fees |
(16,695 |
) |
|
(17,220 |
) |
|
(49,801 |
) |
|
(51,292 |
) |
| General and administrative
expenses |
(3,897 |
) |
|
(3,490 |
) |
|
(14,425 |
) |
|
(12,534 |
) |
| Depreciation and
amortization |
(13,171 |
) |
|
(14,543 |
) |
|
(39,903 |
) |
|
(43,815 |
) |
| Vessel impairment losses |
— |
|
|
(5,258 |
) |
|
(7,345 |
) |
|
(43,118 |
) |
| Interest expense and finance
cost, net |
(11,432 |
) |
|
(10,739 |
) |
|
(35,192 |
) |
|
(31,386 |
) |
| Interest income |
1,858 |
|
|
1,159 |
|
|
5,392 |
|
|
3,106 |
|
| Other income |
105 |
|
|
160 |
|
|
696 |
|
|
880 |
|
| Other expense |
(403 |
) |
|
(398 |
) |
|
(4,725 |
) |
|
(2,470 |
) |
| Equity in net earnings of
affiliated companies |
1,364 |
|
|
1,948 |
|
|
1,549 |
|
|
4,602 |
|
| Net income/
(loss) |
$ |
16,859 |
|
|
$ |
10,457 |
|
|
$ |
813 |
|
|
$ |
(13,598 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit: |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Month Period Ended September 30, 2019
(unaudited) |
|
Three Month Period Ended September 30, 2018
(unaudited) |
|
Nine Month Period Ended September 30, 2019
(unaudited) |
|
Nine Month Period Ended
September 30, 2018
(unaudited) |
| Earnings/ (loss) per
unit: |
|
|
|
|
|
|
|
|
|
|
|
| Common unit (basic and
diluted) |
$ |
1.54 |
|
|
$ |
0.93 |
|
|
$ |
0.07 |
|
|
$ |
(1.18 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P.Other Financial Information(Expressed
in thousands of U.S. Dollars except unit data)
| |
|
|
|
|
|
| |
Nine month Period Ended September 30, 2019
(unaudited) |
|
Nine month Period Ended September 30, 2018
(unaudited) |
|
Net cash provided by operating activities |
47,095 |
|
|
$ |
50,648 |
|
| Net cash used in investing
activities |
(6,884 |
) |
|
(62,451 |
) |
| Net cash (used in)/ provided by
financing activities |
(75,671 |
) |
|
40,192 |
|
| (Decrease)/ increase in
cash, cash equivalents and restricted cash |
(35,460 |
) |
|
$ |
28,389 |
|
| |
|
|
|
|
|
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 |
|
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 |
| |
|
|
|
|
|
|
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 vessel impairment losses and
revision of the estimated guarantee claim receivable. 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 (increase)/ decrease in
operating assets; (ii) net (decrease)/ increase 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 EndedSeptember
30, 2019($
‘000)(unaudited) |
|
Three MonthPeriod EndedSeptember
30, 2018($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember
30, 2019($
‘000)(unaudited) |
|
Nine
MonthPeriod EndedSeptember
30, 2018($
‘000)(unaudited) |
| Net cash
provided by operating activities |
$ |
32,669 |
|
|
$ |
19,394 |
|
|
$ |
47,095 |
|
|
$ |
50,648 |
|
| Net (increase)/ decrease in
operating assets |
|
(2,058 |
) |
|
|
9,178 |
|
|
|
3,844 |
|
|
|
18,981 |
|
| Net (decrease)/ increase in
operating liabilities |
|
(174 |
) |
|
|
349 |
|
|
|
(354 |
) |
|
|
1,410 |
|
| Net interest cost |
|
9,574 |
|
|
|
9,580 |
|
|
|
29,800 |
|
|
|
28,280 |
|
| Amortization and write-off of deferred financing cost |
|
(2,625 |
) |
|
|
(1,694 |
) |
|
|
(7,258 |
) |
|
|
(5,325 |
) |
| Amortization of operating lease right-of-use asset |
|
(158 |
) |
|
|
— |
|
|
|
(158 |
) |
|
|
— |
|
| Non cash accrued interest income
and amortization of deferred revenue |
|
3,168 |
|
|
|
3,156 |
|
|
|
9,471 |
|
|
|
9,364 |
|
| Equity compensation expense |
|
(524 |
) |
|
|
(627 |
) |
|
|
(1,537 |
) |
|
|
(1,862 |
) |
| Vessels impairment loss |
|
— |
|
|
|
(5,258 |
) |
|
|
(7,345 |
) |
|
|
(43,118 |
) |
| Non cash accrued interest income
from receivable from affiliates |
|
73 |
|
|
|
70 |
|
|
|
214 |
|
|
|
202 |
|
| Equity in earnings of affiliates,
net of dividends received |
|
1,364 |
|
|
|
1,948 |
|
|
|
1,549 |
|
|
|
4,602 |
|
|
EBITDA(1) |
$ |
41,309 |
|
|
$ |
36,096 |
|
|
$ |
75,321 |
|
|
$ |
63,182 |
|
| Revision of estimated guarantee
claim receivable |
|
— |
|
|
|
— |
|
|
|
3,638 |
|
|
|
— |
|
| Equity compensation expense |
|
— |
|
|
|
627 |
|
|
|
— |
|
|
|
1,862 |
|
| Vessels impairment loss |
|
— |
|
|
|
5,258 |
|
|
|
7,345 |
|
|
|
43,118 |
|
| Adjusted
EBITDA |
$ |
41,309 |
|
|
$ |
41,981 |
|
|
$ |
86,304 |
|
|
$ |
108,162 |
|
| Cash interest income |
|
127 |
|
|
|
215 |
|
|
|
499 |
|
|
|
546 |
|
| Cash interest paid |
|
(8,557 |
) |
|
|
(9,006 |
) |
|
|
(27,281 |
) |
|
|
(25,856 |
) |
| Maintenance and replacement
capital expenditures |
|
(7,153 |
) |
|
|
(7,399 |
) |
|
|
(21,887 |
) |
|
|
(19,818 |
) |
| Operating
Surplus |
$ |
25,726 |
|
|
$ |
25,791 |
|
|
$ |
37,635 |
|
|
$ |
63,034 |
|
| Cash distribution paid relating
to the first half |
|
— |
|
|
|
— |
|
|
|
(6,728 |
) |
|
|
(6,840 |
) |
| Cash reserves |
|
(22,362 |
) |
|
|
(22,371 |
) |
|
|
(27,543 |
) |
|
|
(52,774 |
) |
| Available cash for
distribution |
$ |
3,364 |
|
|
$ |
3,420 |
|
|
$ |
3,364 |
|
|
$ |
3,420 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Month Period Ended September 30, 2019
(Unaudited) |
|
Three Month Period Ended September 30, 2018
(Unaudited) |
|
Nine Month Period Ended September 30, 2019
(Unaudited) |
|
Nine Month Period Ended September 30, 2018
(Unaudited) |
| Net
cash provided by operating activities |
$ |
32,669 |
|
|
$ |
19,394 |
|
|
$ |
47,095 |
|
|
$ |
50,648 |
|
| Net cash used in investing
activities |
$ |
(5,248 |
) |
|
$ |
(14,050 |
) |
|
$ |
(6,884 |
) |
|
$ |
(62,451 |
) |
| Net cash (used in)/ provided by
financing activities |
$ |
(36,646 |
) |
|
$ |
11,999 |
|
|
$ |
(75,671 |
) |
|
$ |
40,192 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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