- Revenue: $62.6 million in Q3; $173.8 million for the nine months
- Net cash from operating activities: $19.4 million in Q3; $50.6 million for the nine months
- Adjusted EBITDA: $42.0 million in Q3; $108.2 million for the nine months
- Distributions to NMM unitholders
– $0.02 per unit cash distribution
– 855,050 units of Navios Maritime Containers Inc. - Long-term charter agreements
– Two Capesize vessels
– Four Panamax vessels
MONACO, Nov. 13, 2018 (GLOBE NEWSWIRE) — 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, 2018.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the third quarter of 2018, for which Navios Partners had $42.0 million of EBITDA and $16.3 million of adjusted net income. We declared a quarterly distribution of $0.02 per unit for the third quarter, representing a current yield of approximately 5.5%.”
Angeliki Frangou continued, “NMM has good liquidity and a strong balance sheet. As of September 30, 2018, we had $58.3 million of cash and total debt of $511.7 million. Our net debt to book capitalization was 35%, representing a 16% reduction compared to the fourth quarter of 2016. We have no committed growth capex and no debt maturities until 2020.”
Distributions
- Distribution of Navios Containers units
Navios Partners announced a distribution of approximately 2.5% of the outstanding equity of Navios Maritime Containers Inc. (“Navios Containers”) to the unitholders of Navios Partners in connection with the proposed listing of Navios Containers on a U.S. stock exchange as set forth in the registration statement on Form F-1, filed with the U.S. Securities and Exchange Commission. Following the distribution, Navios Partners will own approximately 33.5% of the equity in Navios Containers. Approximately 855,050 shares of common equity of Navios Containers will be distributed by Navios Partners to its unitholders, with the actual number of shares of common equity distributed depending on the number of units of Navios Partners that are issued and outstanding on the record date. The record date for the unitholders entitled to the distribution will be November 23, 2018 and the distribution is expected to occur on or about December 3, 2018.
- Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2018 of $0.02 per unit. The cash distribution is payable on November 14, 2018 to all unitholders of record as of November 7, 2018.
Fleet Developments
- Deliveries
On August 31, 2018, Navios Partners took delivery of the Navios Sphera, a 2016-built Panamax vessel of 84,872 dwt and the Navios Mars, a 2016-built Capesize vessel of 181,259 dwt, from its affiliate, Navios Holdings, for an aggregate purchase price of $79.0 million.
- Sale of Navios Felicity and Navios Libra II
In October 2018, Navios Partners agreed to sell the Navios Libra II, a 1995-built Panamax vessel of 70,136 dwt and the Navios Felicity, a 1997-built Panamax vessel of 73,867 dwt, to unrelated third parties, for net sale prices of $4.6 million and $4.7 million, respectively. The Company is expected to recognize a book loss from the sale of the two vessels of approximately $6.6 million, of which $5.3 million has already been included in the third quarter of 2018. The sales are expected to be completed by the end of 2018.
- Charter Agreements
|
| In October 2018, Navios Partners fixed the Navios Fantastiks, a 2005-built Capesize vessel to a long-term charter agreement. The main terms of the agreement include a charter period for approximately 48 to 60 months at a gross charter-out rate of $19,150 ($18,911 net) plus additional $2,740 net per day for 36 months upon scrubber installation. The charter is expected to commence in the first quarter of 2019. |
|
| In September 2018, Navios Partners fixed the Navios Mars, a 2016-built Capesize vessel to a long-term charter agreement. The main terms of the agreement include a charter period for approximately 34 to 40 months at a gross charter-out rate of $23,800 ($22,610 net). The charter is expected to commence in the first quarter of 2019. |
|
| In August 2018, Navios Partners fixed the Navios Sphera, a 2016-built Panamax vessel to a long-term charter agreement. The main terms of the agreement include a charter period of approximately 26 to 29 months at a gross charter-out rate of 123% average BPI 4TC until January 2019 and 120% average BPI 4TC thereafter until the charter expiration. |
|
| In July 2018, Navios Partners fixed the Navios Hope, a 2005-built Panamax vessel to a long-term charter agreement. The main terms of the agreement include a charter period of approximately 25 to 28 months at a gross charter-out rate of 100% average BPI 4TC. |
|
| In July 2018, Navios Partners fixed the Navios Helios, a 2005-built Panamax vessel to a long-term charter agreement. The main terms of the agreement include a charter period of approximately 23 to 26 months at a gross charter-out rate of 100% average BPI 4TC. |
|
| In July 2018, Navios Partners fixed the Navios Sun, a 2005-built Panamax vessel to a long-term charter agreement. The main terms of the agreement include a charter period of approximately 23 to 29 months at a gross charter-out rate of 100% average BPI 4TC. |
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 97.8% of its available days for 2018, 45.8% for 2019 and 31.5% for 2020, including index-linked charters, expecting to generate revenues (excluding index-linked charters) of approximately $196.9 million, $81.8 million and $81.3 million, respectively. The average expected daily charter-out rate for the fleet is $15,942, $22,265 and $27,774 for 2018, 2019 and 2020, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of operations for the three and nine month periods ended September 30, 2018 and 2017. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. Adjusted EBITDA, Adjusted Earnings per Common unit, Adjusted Net Income and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
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, 2018 and 2017. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. Adjusted EBITDA, Adjusted Earnings per Common unit, Adjusted Net Income and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
As of August 29, 2017, Navios Containers was no longer consolidated and commenced being accounted for under the equity method of accounting. As Navios Containers had operations during the three and nine month periods ended September 30, 2017, the table below includes the impact of Navios Containers in the consolidated financial results and selected financial data for such periods.
| Three Month | Three Month | Nine Month | Nine Month | |||||||||||
| Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||
| September 30, 2018 |
September 30, 2017 |
September 30, 2018 |
September 30, 2017 |
|||||||||||
| (in $‘000 except per unit data) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Revenue | $ | 62,571 | $ | 59,954 | $ | 173,819 | $ | 152,383 | ||||||
| Net income/ (loss) | $ | 10,457 | $ | 9,173 | $ | (13,598 | ) | $ | 7,965 | |||||
| Adjusted Net Income | $ | 16,342 | (1) | $ | 6,143 | (4) | $ | 31,591 | (2) | $ | 11,423 | (5) | ||
| Net cash provided by operating activities | $ | 19,394 | $ | 27,480 | $ | 50,648 | $ | 37,564 | ||||||
| EBITDA | $ | 36,096 | $ | 41,006 | $ | 63,182 | $ | 95,405 | ||||||
| Adjusted EBITDA | $ | 41,981 | (1) | $ | 37,859 | (4) | $ | 108,162 | (3) | $ | 95,947 | (6) | ||
| Earnings/ (Loss) per Common unit (basic and diluted) | $ | 0.06 | $ | 0.06 | $ | (0.08 | ) | $ | 0.06 | |||||
| Adjusted Earnings per Common unit (basic and diluted) | $ | 0.10 | (1) | $ | 0.04 | (4) | $ | 0.19 | (2) | $ | 0.09 | (5) | ||
| Operating Surplus | $ | 25,791 | $ | 27,193 | $ | 63,034 | $ | 67,110 | ||||||
| Maintenance and Replacement Capital expenditure reserve | $ | 7,399 | $ | 4,061 | $ | 19,818 | $ | 10,801 | ||||||
(1) Adjusted Net Income, Adjusted EBITDA 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 vessel and a $0.6 million equity compensation expense.
(2) 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.
(3) 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.
(4) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common unit for the three month period ended September 30, 2017 have been adjusted to exclude a $4.1 million gain on change in control from Navios Containers’ deconsolidation, a $0.5 million equity compensation expense and a $0.4 million relating to the reactivation costs of four laid-up vessels of Navios Containers.
(5) Adjusted Net Income and Adjusted Earnings per Common unit for the nine month period ended September 30, 2017 have been adjusted to exclude a $4.1 million gain on change in control from Navios Containers’ deconsolidation, a $3.2 million write-off of deferred finance fees and discount related to the refinancing of the Term Loan B Facility, a $1.5 million allowance for doubtful accounts, a $1.3 million loss related to the disposal of one of our vessels, a $1.4 million equity compensation expense and a $0.4 million relating to the reactivation costs of four laid-up vessels of Navios Containers.
(6) Adjusted EBITDA for the nine month period ended September 30, 2017 has been adjusted to exclude a $4.1 million gain on change in control from Navios Containers’ deconsolidation, a $1.5 million allowance for doubtful accounts, a $1.3 million loss related to the disposal of one of our vessels, a $1.4 million equity compensation expense and a $0.4 million relating to the reactivation costs of four laid-up vessels of Navios Containers.
Three month periods ended September 30, 2018 and 2017
The details below exclude the impact of the consolidation of Navios Containers for the periods presented as it is intended to provide investors with a clearer picture of Navios Partners on a going forward basis. Navios Containers’ effect on time charter and voyage revenues and adjusted EBITDA for the period from July 1, 2017 to August 29, 2017 was $9.3 million and $4.4 million, respectively.
Time charter and voyage revenues for Navios Partners for the three month period ended September 30, 2018 increased by $11.9 million, or 23.4%, to $62.6 million, as compared to $50.7 million for the same period in 2017. The increase in time charter and voyage revenues was mainly attributable to: (i) the increase in revenue following the acquisition of five vessels in 2017 and five vessels in 2018; and (ii) the increase in the time charter equivalent rate, or TCE rate, to $17,606 per day for the three month period ended September 30, 2018, from $15,588 per day for the three month period ended September 30, 2017 due to the increase in the freight market. That increase was partially mitigated by the decrease in revenue due to the sales of the Navios Gemini S in 2017 and the YM Unity and the YM Utmost in 2018. The available days of the fleet increased to 3,428 days for the three month period ended September 30, 2018, as compared to 3,178 days for the three month period ended September 30, 2017, mainly due to the increased size of the fleet.
EBITDA 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. EBITDA of Navios Partners for the three month period ended September 30, 2017 was negatively affected by the accounting effect of a $0.5 million equity compensation expense. Excluding these items, Adjusted EBITDA increased by $8.7 million to $42.0 million for the three month period ended September 30, 2018, as compared to $33.3 million for the same period in 2017. The increase in Adjusted EBITDA was primarily due to: (i) an $11.9 million increase in revenue; and (ii) a $1.9 million increase in equity in net earnings of affiliated companies. The above increase was partially mitigated by a: (i) $1.1 million increase in time charter and voyage expenses; (ii) $0.9 million increase in management fees due to the increased fleet; (iii) $3.0 million decrease in other income; and (iv) $0.1 million increase in other expenses.
The reserves for estimated maintenance and replacement capital expenditures for the three month periods ended September 30, 2018 and 2017 were $7.4 million and $4.1 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 September 30, 2018 of $25.8 million, as compared to $27.2 million for the three month period ended September 30, 2017. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).
Net Income of Navios Partners for the three month period ended 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. Net Income of Navios Partners for the three month period ended September 30, 2017 was negatively affected by the accounting effect of a $0.5 million equity compensation expense. Excluding these items, Adjusted Net Income for the three month period ended September 30, 2018 amounted to $16.3 million compared to $5.9 million for the three month period ended September 30, 2017. The increase in Adjusted Net Income of $10.5 million was due to: (i) an $8.7 million increase in adjusted EBITDA; (ii) a $0.2 million decrease in direct vessel expenses; (iii) a $3.0 million decrease in depreciation and amortization expense; and (iv) a $0.1 million increase in interest income. The above increase was partially mitigated by a $1.4 million increase in interest expense and finance cost, net.
Nine month periods ended September 30, 2018 and 2017
The details below exclude the impact of the consolidation of Navios Containers for the periods presented as it is intended to provide investors with a clearer picture of Navios Partners on a going forward basis. Navios Containers’ effect on time charter and voyage revenues and adjusted EBITDA for the period from April 28, 2017 (date of inception) to August 29, 2017 was $12.4 million and $6.7 million, respectively.
Time charter and voyage revenues for Navios Partners for the nine month period ended September 30, 2018 increased by $33.8 million, or 24.1%, to $173.8 million, as compared to $140.0 million for the same period in 2017. The increase in time charter and voyage revenues was mainly attributable to: (i) the increase in revenue following the acquisition of seven vessels in 2017 and five vessels in 2018; and (ii) the increase in the TCE rate to $16,745 per day for the nine month period ended September 30, 2018, from $15,591 per day for the nine month period ended September 30, 2017 due to the increase in the freight market. That increase was partially mitigated by the decrease in revenue due to the sales of the MSC Cristina, the Navios Apollon and the Navios Gemini S in 2017 and the YM Unity and the YM Utmost in 2018. The available days of the fleet increased to 9,980 days for the nine month period ended September 30, 2018, as compared to 8,817 days for the nine month period ended September 30, 2017, mainly due to the increased fleet.
EBITDA of Navios Partners 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. EBITDA of Navios Partners for the nine month period ended September 30, 2017 was negatively affected by the accounting effect of a: (i) $4.1 million gain on change in control from Navios Containers’ deconsolidation; (ii) $1.5 million allowance for doubtful accounts; (iii) $1.3 million loss related to the sale of the MSC Cristina; and (iv) $1.4 million equity compensation expense. Excluding these items, Adjusted EBITDA increased by $18.7 million to $108.2 million for the nine month period ended September 30, 2018, as compared to $89.5 million for the same period in 2017. The increase in Adjusted EBITDA was primarily due to a: (i) $33.8 million increase in revenue; and (ii) $4.5 million increase in equity in net earnings of affiliated companies. The above increase was partially mitigated by a: (i) $4.1 million increase in time charter and voyage expenses; (ii) $5.9 million increase in management fees due to the increased fleet; (iii) $0.8 million increase in general and administrative expenses; (iv) $8.4 million decrease in other income; and (v) $0.4 million increase in other expenses.
The reserves for estimated maintenance and replacement capital expenditures for the nine month periods ended September 30, 2018 and 2017 were $19.8 million and $10.8 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, 2018 of $63.0 million, compared to $67.1 million for the nine month period ended September 30, 2017. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).
Net Income of Navios Partners for the 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. Net Income of Navios Partners for the nine month period ended September 30, 2017 was negatively affected by the accounting effect of a: (i) $4.1 million gain on change in control from Navios Containers’ deconsolidation; (ii) $3.2 million write-off of deferred finance fees and discount related to the refinancing of the Term Loan B Facility; (iii) $1.5 million allowance for doubtful accounts; (iv) $1.3 million loss related to the sale of the MSC Cristina; and (v) $1.4 million equity compensation expense. Excluding these items, Adjusted Net Income for the nine month period ended September 30, 2018 amounted to $31.6 million compared to $10.6 million for the nine month period ended September 30, 2017. The increase in Adjusted Net Income of $21.0 million was due to: (i) an $18.7 million increase in Adjusted EBITDA; (ii) a $0.4 million decrease in direct vessel expenses; (iii) a $7.8 million decrease in depreciation and amortization expense; and (iv) a $0.6 million increase in interest income. The above increase was partially mitigated by a $6.5 million increase in interest expense and finance cost, net.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three and nine month periods ended September 30, 2018 and 2017 (excluding Navios Containers).
| Three Month Period Ended September 30, 2018 (unaudited) |
Three Month Period Ended September 30, 2017 (unaudited) |
Nine Month Period Ended September 30, 2018 (unaudited) |
Nine Month Period Ended September 30, 2017 (unaudited) |
|||||||||||||
| Available Days(1) | 3,428 | 3,178 | 9,980 | 8,817 | ||||||||||||
| Operating Days(2) | 3,389 | 3,165 | 9,875 | 8,775 | ||||||||||||
| Fleet Utilization(3) | 98.9 | % | 99.6 | % | 98.9 | % | 99.5 | % | ||||||||
| Time Charter Equivalent Combined (per day) (4) | $ | 17,606 | $ | 15,588 | $ | 16,745 | $ | 15,591 | ||||||||
| Time Charter Equivalent Drybulk (per day) (4) | $ | 15,559 | $ | 11,547 | $ | 13,658 | $ | 10,893 | ||||||||
| Time Charter Equivalent Containers (per day) (4) | $ | 30,687 | $ | 31,487 | $ | 31,458 | $ | 31,845 | ||||||||
| Vessels operating at period end | 39 | 37 | 39 | 37 | ||||||||||||
(1) Available days for the fleet represent total calendar days the vessels were in Navios Partners’ possession for the relevant period after subtracting off-hire days associated with scheduled repairs, dry dockings or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues.
(2) Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
(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 today, Tuesday, November 13, 2018 to discuss the results for the third quarter and nine months ended September 30, 2018.
Call Date/Time: Tuesday, November 13, 2018 at 8:30 am ET
Call Title: Navios Partners Q3 2018 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 815 8118
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: 815 8118
Slides and audio webcast:
There will also be a live webcast of the conference call, through the Navios Partners website (www.navios-mlp.com) under “Investors”. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A supplemental slide presentation will be available on the Navios Partners’ website under the “Investors” section by 8:00 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit our website at www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events including Navios Partners’ 2018 cash flow generation, future contracted revenues, future distributions and its ability to have a dividend going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, our ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters.
These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize, Ultra Handymax and Container vessels in particular, fluctuations in charter rates for dry cargo carriers and container vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew, 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 8645
[email protected]
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
[email protected]
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
SELECTED BALANCE SHEET DATA
(Expressed in thousands of U.S. Dollars except unit data)
| September 30, 2018 (unaudited) |
December 31, 2017 (unaudited) |
||||
| ASSETS | |||||
| Cash and cash equivalents, including restricted cash | $ | 58,322 | $ | 29,933 | |
| Vessels, net | 1,065,698 | 1,099,015 | |||
| Other assets (including current and non-current) | 199,571 | 168,274 | |||
| Intangible assets | 5,032 | 8,080 | |||
| Total assets | $ | 1,328,623 | $ | 1,305,302 | |
| LIABILITIES AND PARTNERS’ CAPITAL | |||||
| Other current liabilities | $ | 26,251 | $ | 27,661 | |
| Current portion of long-term debt, net | 27,824 | 26,586 | |||
| Long-term debt, net | 483,845 | 466,877 | |||
| Other non-current liabilities | 7,417 | 16,468 | |||
| Total partners’ capital | 783,286 | 767,710 | |||
| Total liabilities and partners’ capital | $ | 1,328,623 | $ | 1,305,302 | |
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
| Three Month Period Ended September 30, 2018 (unaudited) |
Three Month Period Ended September 30, 2017 (unaudited) |
Nine Month Period Ended September 30, 2018 (unaudited) |
Nine Month Period Ended September 30, 2017 (unaudited) |
|||||||||||||||
| Time charter and voyage revenues | $ | 62,571 | $ | 59,954 | $ | 173,819 | $ | 152,383 | ||||||||||
| Time charter and voyage expenses | (2,217 | ) | (1,402 | ) | (6,705 | ) | (2,815 | ) | ||||||||||
| Direct vessel expenses | (1,516 | ) | (2,190 | ) | (4,685 | ) | (5,523 | ) | ||||||||||
| Management fees (entirely through related parties transactions) | (17,220 | ) | (20,284 | ) | (51,292 | ) | (50,089 | ) | ||||||||||
| General and administrative expenses | (3,490 | ) | (3,888 | ) | (12,534 | ) | (11,965 | ) | ||||||||||
| Depreciation and amortization | (14,543 | ) | (21,083 | ) | (43,815 | ) | (56,538 | ) | ||||||||||
| Vessel impairment losses | (5,258 | ) | — | (43,118 | ) | — | ||||||||||||
| Interest expense and finance cost, net | (10,739 | ) | (9,882 | ) | (31,386 | ) | (28,382 | ) | ||||||||||
| Interest income | 1,159 | 990 | 3,106 | 2,316 | ||||||||||||||
| Gain on change in control | — | 4,068 | — | 4,068 | ||||||||||||||
| Other income | 160 | 3,180 | 880 | 9,250 | ||||||||||||||
| Other expense | (398 | ) | (349 | ) | (2,470 | ) | (4,799 | ) | ||||||||||
| Equity in net earnings of affiliated companies | 1,948 | 59 | 4,602 | 59 | ||||||||||||||
| Net income/ (loss) | $ | 10,457 | $ | 9,173 | $ | (13,598 | ) | $ | 7,965 | |||||||||
| Less: Net loss/ (income) attributable to the noncontrolling interest | — | $ | 116 | — | $ | (239 | ) | |||||||||||
| Net income/ (loss) attributable to Navios Partners unitholders | $ | 10,457 | $ | 9,289 | $ | (13,598 | ) | $ | 7,726 | |||||||||
Earnings per unit:
| Three Month Period Ended September 30, 2018 (unaudited) |
Three Month Period Ended September 30, 2017 (unaudited) |
Nine Month Period Ended September 30, 2018 (unaudited) |
Nine Month Period Ended September 30, 2017 (unaudited) |
|||||||||||||
| Earnings/ (loss) per unit: | ||||||||||||||||
| Common unit (basic and diluted) | $ | 0.06 | $ | 0.06 | $ | (0.08 | ) | $ | 0.06 | |||||||
NAVIOS MARITIME PARTNERS L.P.
Other Financial Information
(Expressed in thousands of U.S. Dollars except unit data)
| Nine Month Period Ended September 30, 2018 (Unaudited) |
Nine Month Period Ended September 30, 2017 (Unaudited) |
||||||
| Net cash provided by operating activities | $ | 50,648 | $ | 37,564 | |||
| Net cash used in investing activities | (62,451 | ) | (179,526 | ) | |||
| Net cash provided by financing activities | 40,192 | 148,235 | |||||
| Net increase in cash, cash equivalents and restricted cash | $ | 28,389 | $ | 6,273 | |||
EXHIBIT 2
| Owned Drybulk Vessels | Type |
Built | Capacity (DWT) |
|||||
| Navios Soleil | Ultra-Handymax | 2009 | 57,337 | |||||
| Navios La Paix | Ultra-Handymax | 2014 | 61,485 | |||||
| Navios Christine B | Ultra-Handymax | 2009 | 58,058 | |||||
| Navios Libra II(1) | Panamax | 1995 | 70,136 | |||||
| Navios Felicity(1) | Panamax | 1997 | 73,867 | |||||
| Navios Galaxy I | Panamax | 2001 | 74,195 | |||||
| Navios Hyperion | Panamax | 2004 | 75,707 | |||||
| Navios Alegria | Panamax | 2004 | 76,466 | |||||
| Navios Orbiter | Panamax | 2004 | 76,602 | |||||
| Navios Helios | Panamax | 2005 | 77,075 | |||||
| Navios Hope | Panamax | 2005 | 75,397 | |||||
| Navios Sun | Panamax | 2005 | 76,619 | |||||
| Navios Sagittarius | Panamax | 2006 | 75,756 | |||||
| Navios Harmony | Panamax | 2006 | 82,790 | |||||
| Navios Prosperity I | Panamax | 2007 | 75,527 | |||||
| Navios Libertas | Panamax | 2007 | 75,511 | |||||
| Navios 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 TBN I | Panamax | 2019 | 81,000 | H2 2019 | |||||||
|
Owned Containerships |
Type | Built |
Capacity (TEU) |
||||||||
| Hyundai Hongkong | Container | 2006 | 6,800 | ||||||||
| Hyundai Singapore | Container | 2006 | 6,800 | ||||||||
| Hyundai Tokyo | Container | 2006 | 6,800 | ||||||||
| Hyundai Shanghai | Container | 2006 | 6,800 | ||||||||
| Hyundai Busan | Container | 2006 | 6,800 | ||||||||
(1) Includes the Navios Libra II and the Navios Felicity expected to be sold by the end of 2018.
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA and Adjusted EBITDA
EBITDA represents net income/ (loss) attributable to Navios Partners’ unitholders before interest and finance costs, before depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA before equity compensation expense, loss on sale of vessel, impairment losses and allowance for doubtful accounts, reactivation costs and gain on change in control. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconcile EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by/(used in) operating activities adding back, when applicable and as the case may be, the effect of: (i) net (increase)/decrease in operating assets; (ii) net (decrease)/increase in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance charges and other related expenses; (v) allowance for doubtful accounts; (vi) equity in net earnings of affiliated companies; (vii) payments for drydock and special survey costs; (viii) gain/(loss) on sale of assets/subsidiaries; (ix) impairment charges; (x) non-cash accrued interest income and amortization of deferred revenue; (xi) gain/(loss) on debt repayments; (xii) equity compensation expense; (xiii) gain on change in control; (xiv) noncontrolling interest; and (xv) non-cash accrued interest income from receivable from affiliates. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Adjusted EBITDA represents EBITDA excluding certain items, as described under “Earnings Highlights.”
EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
2. Operating Surplus
Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense, estimated maintenance and replacement capital expenditures and one-off items. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.
Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
3. Available Cash
Available Cash generally means for each fiscal quarter, all cash on hand at the end of the quarter:
- less the amount of cash reserves established by the Board of Directors to:
• provide for the proper conduct of Navios Partners’ business (including reserve for maintenance and replacement capital expenditures);
• comply with applicable law, any of Navios Partners’ debt instruments, or other agreements; or
• provide funds for distributions to the unitholders and to the general partner for any one or more of the next four quarters;
- plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Working capital borrowings are generally borrowings that are made under any revolving credit or similar agreement used solely for working capital purposes or to pay distributions to partners.
Available Cash is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Available cash is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
4. Reconciliation of Non-GAAP Financial Measures
| Three Month Period Ended September 30, 2018 ($ ‘000) (unaudited) |
Three Month Period Ended September 30, 2017 ($ ‘000) (unaudited) |
Nine Month Period Ended September 30, 2018 ($ ‘000) (unaudited) |
Nine Month Period Ended September 30, 2017 ($ ‘000) (unaudited) |
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| Net cash provided by operating activities | $ | 19,394 | $ | 27,480 | (2) | $ | 50,648 | $ | 37,564 | (2) | |||||||
| Net increase in operating assets | 9,178 | 2,533 | (2) | 18,981 | 26,299 | (2) | |||||||||||
| Net increase/ (decrease) in operating liabilities | 349 | (3,142 | ) | 1,410 | 4,222 | ||||||||||||
| Net interest cost | 9,580 | 8,890 | 28,280 | 26,065 | |||||||||||||
| Amortization and write-off of deferred financing cost | (1,694 | ) | (1,806 | ) | (5,325 | ) | (7,965 | ) | |||||||||
| Non cash accrued interest income and amortization of deferred revenue | 3,156 | 3,153 | 9,364 | 9,357 | |||||||||||||
| Equity compensation expense | (627 | ) | (474 | ) | (1,862 | ) | (1,408 | ) | |||||||||
| Gain on change in control | — | 4,068 | — | 4,068 | |||||||||||||
| Vessels impairment loss | (5,258 | ) | — | (43,118 | ) | — | |||||||||||
| Non cash accrued interest income from receivable from affiliates | 70 | 65 | 202 | 138 | |||||||||||||
| Allowance for doubtful accounts | — | — | — | (1,495 | ) | ||||||||||||
| Loss on vessel disposal | — | — | — | (1,260 | ) | ||||||||||||
| Noncontrolling interest | — | 116 | — | (239 | ) | ||||||||||||
| Equity in earnings of affiliates, net of dividends received | 1,948 | 123 | 4,602 | 59 | |||||||||||||
| EBITDA(1) | $ | 36,096 | $ | 41,006 | $ | 63,182 | $ |
95,405 | |||||||||
| Allowance for doubtful accounts | — | — | — | 1,495 | |||||||||||||
| Loss on vessel disposal | — | — | — | 1,260 | |||||||||||||
| Equity compensation expense | 627 | 474 | 1,862 | 1,408 | |||||||||||||
| Reactivation cost | — | 447 | — | 447 | |||||||||||||
| Gain on change in control | — | (4,068 | ) | — | (4,068 | ) | |||||||||||
| Vessels impairment loss | 5,258 | — | 43,118 | — | |||||||||||||
| Adjusted EBITDA | $ | 41,981 | $ | 37,859 | $ | 108,162 | $ |
95,947 | |||||||||
| Cash interest income | 215 | 439 | 546 | 809 | |||||||||||||
| Cash interest paid | (9,006 | ) | (7,044 | ) | (25,856 | ) | (18,845 | ) | |||||||||
| Maintenance and replacement capital expenditures | (7,399 | ) | (4,061 | ) | (19,818 | ) | (10,801 | ) | |||||||||
| Operating Surplus | $ | 25,791 | $ | 27,193 | $ | 63,034 | $ | 67,110 | |||||||||
| Cash distribution paid relating to the first half | — | — | (6,840 | ) | — | ||||||||||||
| Cash reserves | (22,371 | ) | (27,193 | ) | (52,774 | ) | (67,110 | ) | |||||||||
| Available cash for distribution | $ | 3,420 | $ | — | $ | 3,420 | $ | — | |||||||||
(1)
| Three Month Period Ended September 30, 2018 (Unaudited) |
Three Month Period Ended September 30, 2017 (Unaudited) |
Nine Month Period Ended September 30, 2018 (Unaudited) |
Nine Month Period Ended September 30, 2017 (Unaudited) |
||||||||||
| Net cash provided by operating activities | $ | 19,394 | $ | 27,480 | $ | 50,648 | $ | 37,564 | |||||
| Net cash used in investing activities | $ | (14,050 | ) | $ | (167,757 | ) | $ | (62,451 | ) | $ | (179,526 | ) | |
| Net cash provided by financing activities | $ | 11,999 | $ | 85,590 | $ | 40,192 | $ | 148,235 | |||||
(2) The net cash provided by operating activities and net increase in operating assets presented in this table have been revised to reflect the adoption of ASU 2016-18, which was effective beginning the first quarter ended March 31, 2018 and applied retrospectively to the three and nine month periods ended September 30, 2017.
