Navios Maritime Partners L.P. Reports Financial Results for the First Quarter Ended March 31, 2013
http://media.marketwire.com/attachments/201104/24306_logo.jpghttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=1010507&ProfileId=051205&sourceType=1PIRAEUS, GREECE -- (Marketwired) -- 04/25/13 -- Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM)
- Cash distribution of $0.4425 per unit for Q1 2013
- 4.8% increase in quarterly Revenue to $50.3 million
- 5.4% increase in quarterly Operating Surplus to $31.2 million
- Acquisition of four vessels
Navios Maritime Partners L.P., an owner and operator of dry cargo vessels, today reported its financial results for the first quarter ended March 31, 2013.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "Navios Partners has become a key player in the dry bulk industry. Consistent performance has enabled us to position our business well in the face of challenging commodities markets. We have found that Navios Partners' stability and brand is a competitive advantage in dealing with parties who are considering long-term exposure."
Angeliki Frangou continued, "We have been patiently seeking appropriate vessels for Navios Partners in the open market for a while. As a result of the recent devaluation of the Japanese yen, some of our Japanese partners were able to transact for the first time in a few years. In a relatively short period of time, we acquired four vessels from leading Japanese shipyards with an average age of 3.75 years for $108 million. As a result, two newbuildings and two relatively young vessels will be delivered in the fourth quarter of this year. The flexibility in delivery dates should allow us to employ the vessels at what we expect to be more favorable rates than the current market."
RECENT DEVELOPMENTS
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2013 of $0.4425 per unit. The cash distribution is payable on May 14, 2013 to unitholders of record on May 10, 2013.
Vessel Acquisitions
Navios Partners has agreed to acquire the following four Japanese-built vessels for a total consideration of $108.0 million.
-------------------------------------------------------------
Type Year Built DWT Delivery
-------------------------------------------------------------
Capesize Newbuilding 180,000 Q4 2013
-------------------------------------------------------------
Ultra-Handymax Newbuilding 61,000 Q1 2014
-------------------------------------------------------------
Kamsarmax 2006 82,790 Q4 2013
-------------------------------------------------------------
Panamax 2005 76,619 Q4 2013
-------------------------------------------------------------
The acquisition of the vessels is expected to be partially financed by 50% bank debt, consistent with its existing credit facilities.
Credit Facilities
In March 2013, Navios Partners amended the credit facility dated July 2012 and prepaid $50.0 million. The prepayment was applied as follows: $15.0 million to installments due in 2013, $26.8 million to installments due in 2014 and $8.2 million relating to installments due in 2015 and onward. As of March 31, 2013, the outstanding balance was $201.6 million. The facility bears margin ranging from 180 to 205 bps per annum depending on the loan amount compared to the security value.
Long-Term and Insured Cash Flow
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of 2.8 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 84.8% of its available days for 2013, 40.5% for 2014 and 33.8% for 2015, generating revenues of approximately $173.6 million, $113.8 million and $97.1 million, respectively. The average contractual daily charter-out rate for the fleet is $25,728, $30,766 and $31,452 for 2013, 2014 and 2015, respectively. The average daily charter-in rate for the charter-in vessels is $13,513 for 2013.
We have insured certain of our long-term charter-out contracts until the end of 2016, either through an "AA" rated European Union insurance provider up to a maximum cash payment of $120.0 million or through a separate agreement with Navios Holdings up to a maximum cash payment of $20.0 million.
FINANCIAL HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three month periods ended March 31, 2013 and 2012. The quarterly 2013 and 2012 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results.
Three Month Three Month
Period ended Period ended
March 31, 2013 March 31, 2012
(in $ '000 except per unit data) (unaudited) (unaudited)
--------------- ---------------
Revenue $ 50,281 $ 47,987
Net income $ 16,246 $ 16,937
EBITDA $ 37,054 $ 36,785
Earnings per Common unit (basic and
diluted) 0.24 0.30
Operating Surplus $ 31,215 $ 29,590
Maintenance and Replacement Capital
expenditure reserve $ (3,467) $ (4,461)
Three month periods ended March 31, 2013 and 2012
Time charter revenues for the three month period ended March 31, 2013 increased by $2.3 million or 4.8% to $50.3 million, as compared to $48.0 million for the same period in 2012. The increase was mainly attributable to the acquisition of the Navios Buena Ventura on June 15, 2012, the acquisition of the Navios Soleil on July 24, 2012 and the acquisition of the Navios Helios on July 27, 2012. As a result of the vessel acquisitions, available days of the fleet increased to 1,890 days for the three month period ended March 31, 2013, as compared to 1,576 days for the three month period ended March 31, 2012. Time charter equivalent ("TCE") decreased to $26,244 for the three month period ended March 31, 2013, from $29,978 for the three month period ended March 31, 2012.
EBITDA increased by $0.3 million to $37.1 million for the three month period ended March 31, 2013, as compared to $36.8 million for the same period in 2012. The increase in EBITDA was due to a $2.3 million increase in revenue following the acquisitions of the vessels discussed above and a $0.1 million decrease in time charter expenses. The above increase was partially offset by a $1.3 million increase in management fees due to the increased number of vessels, a $0.3 million increase in general and administrative expenses and a $0.5 million decrease in other income.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2013 and 2012 was $3.5 million and $4.5 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Partners generated an Operating Surplus for the three month period ended March 31, 2013 of $31.2 million, as compared to $29.6 million for the three month period ended March 31, 2012. 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 months ended March 31, 2013 amounted to $16.2 million compared to $16.9 million for the three months ended March 31, 2012. The decrease in net income by $0.7 million was due to a $0.3 million increase in EBITDA and a $0.4 million decrease in interest expense and finance cost, net partially off-set by: (i) a $0.1 million decrease in interest income; and (ii) a $1.2 million increase in depreciation and amortization expense due to the acquisitions of the Navios Buena Ventura, the Navios Soleil and the Navios Helios and the favorable lease terms recognized in relation to the Navios Buena Ventura.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three month periods ended March 31, 2013 and 2012.
Three Month Three Month
Period ended Period ended
March 31, March 31,
2013 2012
--------------- ---------------
(Unaudited) (Unaudited)
Available Days (1) 1,890 1,576
Operating Days (2) 1,886 1,574
Fleet Utilization (3) 99.81% 99.88%
Time Charter Equivalent (per day) (4) $ 26,244 $ 29,978
Vessels operating at period end 21 18
(1) Available days for the fleet represent total calendar days the vessels
were in our possession for the relevant period after subtracting off-
hire days associated with scheduled repairs, drydockings 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 is 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 our 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, drydockings or special
surveys.
(4) Time Charters Equivalents ("TCE") rates are 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 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, Thursday, April 25, 2013 to discuss the results for the first quarter ended March 31, 2013.
Conference Call details:
Call Date/Time: Thursday, April 25, 2013 at 08:30 am ET
Call Title: Navios Partners Q1 2013 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 3095 8978
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: 3095 8978
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 Partners (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 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. Although the 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 changes in the demand for dry bulk vessels, 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 the Navios Partners' filings with the Securities and Exchange Commission. 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.
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEET
(Expressed in thousands of U.S. Dollars except unit data)
March 31, December 31,
2013 2012
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 73,892 $ 32,132
Restricted cash 1,267 29,529
Accounts receivable, net 9,018 7,778
Prepaid expenses and other current assets 584 594
------------- -------------
Total current assets 84,761 70,033
------------- -------------
Vessels, net 712,592 721,391
Deferred financing costs, net 3,531 2,767
Other long term assets 58 282
Intangible assets 150,867 160,479
------------- -------------
Total non-current assets 867,048 884,919
------------- -------------
Total assets $ 951,809 $ 954,952
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 2,369 $ 2,090
Accrued expenses 2,471 3,599
Deferred voyage revenue 5,239 9,112
Current portion of long-term debt 4,700 23,727
Amounts due to related parties 21,677 21,748
------------- -------------
Total current liabilities 36,456 60,276
------------- -------------
Long-term debt 239,085 275,982
------------- -------------
Total non-current liabilities 239,085 275,982
------------- -------------
Total liabilities 275,541 336,258
============= =============
Commitments and contingencies -- --
Partners' capital:
Common Unitholders (65,284,163 and 60,109,163
units issued and outstanding at March 31, 2013
and December 31, 2012, respectively) 672,958 616,604
General Partner (1,332,334 and 1,226,721 units
issued and outstanding at March 31, 2013 and
December 31, 2012, respectively) 3,310 2,090
------------- -------------
Total partners' capital 676,268 618,694
------------- -------------
Total liabilities and partners' capital $ 951,809 $ 954,952
============= =============
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. Dollars except unit and per unit amounts)
Three Month Three Month
Period ended Period ended
March 31, March 31,
2013 2012
(unaudited) (unaudited)
--------------- ---------------
Time charter revenues $ 50,281 $ 47,987
Time charter expenses (3,112) (3,215)
Direct vessel expenses -- (12)
Management fees (8,491) (7,234)
General and administrative expenses (1,609) (1,285)
Depreciation and amortization (18,411) (17,150)
Interest expense and finance cost, net (2,405) (2,812)
Interest income 8 126
Other income 44 558
Other expense (59) (26)
--------------- ---------------
Net income $ 16,246 $ 16,937
=============== ===============
Earnings per unit:
Three Month Three Month
Period ended Period ended
March 31, March 31,
2013 2012
(unaudited) (unaudited)
-------------- --------------
Net income $ 16,246 $ 16,937
Earnings attributable to:
Common unit holders 15,472 16,598
Weighted average units outstanding (basic and
diluted):
Common unit holders 63,214,163 54,509,163
Earnings per unit overall (basic and diluted):
Common unit holders $ 0.24 $ 0.30
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Three Month Three Month
Period Ended Period Ended
March 31, March 31,
2013 2012
(unaudited) (unaudited)
-------------- --------------
OPERATING ACTIVITIES
Net income $ 16,246 $ 16,937
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 18,411 17,150
Amortization of deferred financing cost 536 138
Amortization of deferred dry dock costs -- 12
Changes in operating assets and liabilities:
Increase in restricted cash (1) (1)
(Increase)/decrease in accounts receivable (1,240) 1,187
Decrease in prepaid expenses and other
current assets 10 1,778
Decrease/(increase) in other long term
assets 224 (433)
Increase/(decrease) in accounts payable 279 (382)
Decrease in accrued expenses (1,128) (143)
Decrease in deferred voyage revenue (3,873) (2,250)
(Decrease)/increase in amounts due to
related parties (71) 3,795
-------------- --------------
Net cash provided by operating activities 29,393 37,788
-------------- --------------
FINANCING ACTIVITIES:
Cash distributions paid (29,936) (24,829)
Net proceeds from issuance of general
partner units 1,494 --
Proceeds from issuance of common units, net
of offering costs 69,770 --
Decrease in restricted cash 28,263 7,434
Repayment of long-term debt and payment of
principal, net of expenses (57,224) (34,975)
-------------- --------------
Net cash provided by/(used in) financing
activities 12,367 (52,370)
-------------- --------------
Increase/(decrease) in cash and cash
equivalents 41,760 (14,582)
-------------- --------------
Cash and cash equivalents, beginning of
period 32,132 48,078
-------------- --------------
Cash and cash equivalents, end of period $ 73,892 $ 33,496
============== ==============
EXHIBIT 2
Charter-
Capacity Charter Out Rate
Owned Vessels Type Built (DWT) Expiration Date (1)
Navios Apollon Ultra-Handymax 2000 52,073 February 2014 $ 13,500(2)
Navios Soleil Ultra-Handymax 2009 57,337 December 2013 $ 8,906
Navios TBN I(3) Ultra-Handymax 2014 61,000 -- --
Navios Gemini S Panamax 1994 68,636 February 2014 $ 24,225
Navios Libra II Panamax 1995 70,136 September 2015 $ 12,000(2)
Navios Felicity Panamax 1997 73,867 May 2013 $ 26,169
Navios Galaxy I Panamax 2001 74,195 February 2018 $ 21,937
Navios Helios Panamax 2005 77,075 September 2013 $ 9,738
Navios Hyperion Panamax 2004 75,707 April 2014 $ 37,953
Navios Alegria Panamax 2004 76,466 February 2014 $ 16,984(4)
Navios Orbiter Panamax 2004 76,602 April 2014 $ 38,052
Navios Hope Panamax 2005 75,397 August 2013 $ 17,562
Navios
Sagittarius Panamax 2006 75,756 November 2018 $ 26,125
Navios TBN II(5) Panamax 2006 82,790 -- --
Navios TBN III
(5) Panamax 2005 76,619 -- --
Navios Fantastiks Capesize 2005 180,265 March 2014 $ 14,678
Navios Aurora II Capesize 2009 169,031 November 2019 $ 41,325
Navios Pollux Capesize 2009 180,727 July 2019 $ 42,250
Navios Fulvia Capesize 2010 179,263 September 2015 $ 50,588
Navios Melodia(6) Capesize 2010 179,132 September 2022 $ 29,356(7)
Navios Luz Capesize 2010 179,144 November 2020 $ 29,356(8)
Navios Buena
Ventura Capesize 2010 179,259 October 2020 $ 29,356(8)
Navios TBN IV (5) Capesize 2013 180,000 -- --
Chartered-in Vessels
Navios Prosperity (9) Panamax 2007 82,535 June 2013 $ 12,000(11)
Navios Aldebaran (10) Panamax 2008 76,500 May 2013 $ 14,725
(1) Net time charter-out rate per day (net of commissions).These rates do not include insurance proceeds received upfront in December 2012.
(2) Profit sharing 50% on the actual results above the period rates.
(3) Expected to be delivered in the first quarter of 2014.
(4) Profit sharing 50% above $16,984/ day based on Baltic Exchange Panamax TC Average.
(5) Expected to be delivered in the fourth quarter of 2013.
(6) In January 2011, Korea Line Corporation ("KLC") filed for receivership. The charter was affirmed and will be performed by KLC on its original terms, provided that during an interim suspension period the sub-charterer pays Navios Partners directly.
(7) Profit sharing 50% above $37,500/ day based on Baltic Exchange Capesize TC Average.
(8) Profit sharing 50% above $38,500/ day based on Baltic Exchange Capesize TC Average.
(9) The Navios Prosperity is chartered-in for seven years until June 2014 and we have options to extend for two one-year periods. We have the option to purchase the vessel after June 2012 at a purchase price that is initially 3.8 billion Yen declining each year by 145 million Yen.
(10) The Navios Aldebaran is chartered-in for seven years until March 2015 and we have options to extend for two one-year periods. We have the option to purchase the vessel after March 2013 at a purchase price that is initially 3.6 billion Yen declining each year by 150 million Yen.
(11) Profit sharing: The owners will receive 100% of the first $1,500 in profits above the base rate and thereafter all profits will be split 50% to each party.
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.
EBITDA is presented because Navios Partners believes that EBITDA is a basis upon which liquidity can be assessed and present useful information to investors regarding Navios Partners' ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. EBITDA is a "non-GAAP financial measure" 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.
While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used 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 and estimated maintenance and replacement capital expenditures. 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 Three Month
Period ended Period ended
March 31, 2013 March 31, 2012
($ '000) ($ '000)
(unaudited) (unaudited)
-------------- --------------
Net cash provided by operating activities $ 29,393 $ 37,788
Net decrease/(increase) in operating assets 1,007 (2,531)
Net increase/(decrease) in operating
liabilities 4,793 (1,020)
Net interest cost 2,397 2,686
Amortization of deferred financing cost (536) (138)
-------------- --------------
EBITDA(1) $ 37,054 $ 36,785
Cash interest income 9 95
Cash interest paid (2,381) (2,829)
Maintenance and replacement capital
expenditures (3,467) (4,461)
-------------- --------------
Operating Surplus $ 31,215 $ 29,590
Cash reserves (1,279) (4,761)
-------------- --------------
Available cash for distribution $ 29,936 $ 24,829
============== ==============
(1)
Three Month Three Month
Period ended Period ended
March 31, 2013 March 31, 2012
($ '000) ($ '000)
(unaudited) (unaudited)
--------------- ---------------
Net cash provided by operating activities $ 29,393 $ 37,788
Net cash provided by/(used in) financing
activities $ 12,367 $ (52,370)
Contacts
Investor Relations Contact:
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
naviospartners@capitallink.com