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 fourth quarter and year
ended December 31, 2018.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “I am pleased with our
results. Navios Partners reported $139.1 million of
adjusted EBITDA and $36.7 million of adjusted net income for 2018,
of which $31.0 million of adjusted
EBITDA and $5.1 million of adjusted net income
was reported in the fourth quarter of 2018.”
Angeliki Frangou continued,
“NMM owns 38 vessels, and the TCE
rate for our drybulk fleet was 18% higher in
2018 than 2017. We declared a quarterly distribution
of $0.02 cents per unit for the fourth quarter,
representing a current yield of approximately 8.0%.
We also continue
to leverage the weakness in the container
sector through our 33.5% interest in Navios
Containers. Today, Navios Containers owns 30
containerships, trades on NASDAQ and has an enviable balance
sheet and competitive position.”
Returning Capital to
Unitholders
- Unit Repurchase ProgramIn January 2019, the
Board of Directors of Navios Partners authorized a common unit
repurchase program for up to $50.0 million of the Company’s common
units over a two year period. Common unit repurchases will be made
from time to time for cash in open market transactions at
prevailing market prices or in privately negotiated transactions.
The timing and amount of repurchases under the program will be
determined by Navios Partners’ management based upon market
conditions and other factors. Repurchases may be made pursuant to a
program adopted under Rule 10b5-1 under the Securities Exchange Act
of 1934, as amended. The program does not require any minimum
repurchase or any specific number of common units and may be
suspended or reinstated at any time in the Company’s discretion and
without notice. The Board of Directors will review the program
periodically. Repurchases will be subject to restrictions under the
Company’s credit facilities.
- DistributionsCash
Distribution The Board of Directors of Navios
Partners declared a cash distribution for the fourth quarter of
2018 of $0.02 per unit. The cash distribution is payable on
February 14, 2019 to all unitholders of record as of February 11,
2019.$4.2 million Distribution in kindIn December
2018, Navios Partners distributed 855 thousands units of Navios
Maritime Containers L.P. (“Navios Containers”) to the unitholders
of Navios Partners (approximately 2.5% of the outstanding equity).
The amount of the distribution was $4.2 million based on the last
trading price of Navios Containers’ shares in N-OTC as of November
23, 2018. Following this distribution, Navios
Partners owns approximately 33.5% of the equity in Navios
Containers.
Financing Arrangements
- $174.3 million of agreements with four banks for
refinancing of twelve vessels In December 2018,
Navios Partners entered into agreements with four banks, for a
total amount of $174.3 million for refinancing of eight Capesize,
one Panamax and three Ultra-Handymax vessels. The agreements have a
weighted average term of 5.3 years and bear an average interest
rate of LIBOR plus 270 basis points (“bps”) per annum. Amortization
profiles of the four facilities range between 15.2 and 18.0 years
on an age adjusted basis. The above facilities are subject to
signing of definitive documentation.
- Sale and Leaseback TransactionIn December
2018, Navios Partners entered into a $25.0 million sale and
leaseback transaction with unrelated third parties, for the Navios
Fantastiks, a 2005-built Capesize vessel and the Navios Beaufiks, a
2004-built Capesize vessel. The sale and leaseback has an average
term of 5.4 years and an age adjusted amortization profile of
approximately 25 years. The bareboat lease provides an average
daily payment of $5,200 per vessel. This results at an implied
fixed interest rate of 7.6%. Navios Partners has the option to buy
the vessels starting at the end of year three which de-escalates
until maturity to $6.3 million per vessel. The purchase obligation
at maturity of $6.3 million per vessel is lower than the scrap
value of the vessels. This financing structure has no financial
covenants and no loan-to-value requirements.
Fleet Update
- Sale of Navios Felicity and Navios Libra IIIn
December 2018, the Company completed the sale of the Navios
Felicity, a 1997-built Panamax vessel of 73,867 dwt and the Navios
Libra II, a 1995-built Panamax vessel of 70,136 dwt, to unrelated
third parties, for net sale prices of $4.7 million and $4.6
million, respectively. The average age of the two vessels was 23
years. The Company has recognized a book loss from the sale of the
two vessels of $6.5 million, of which $1.2 million has been
included in the fourth quarter of 2018.
- Long-Term Cash FlowNavios Partners has entered
into medium to long-term time charter-out agreements for its
vessels with a remaining average term of approximately 2.2 years.
Navios Partners has currently contracted out 68.1% of its available
days for 2019, 32.9% for 2020 and 21.7% for 2021, including
index-linked charters, expecting to generate revenues (excluding
index-linked charters) of approximately $97.7 million, $82.4
million and $80.8 million, respectively. The average expected daily
charter-out rate for the fleet is $19,826, $27,604 and $27,684 for
2019, 2020 and 2021, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of operations for the three month periods
and years ended December 31, 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 the
year ended December 31, 2017.
|
|
|
|
|
|
|
|
|
Three Month |
|
Three Month |
|
|
|
|
|
Period Ended |
|
Period Ended |
|
Year Ended |
|
Year Ended |
|
December 31,2018 |
|
December
31,2017 |
|
December 31,2018 |
|
December
31,2017 |
(in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
57,542 |
|
|
$ |
59,269 |
|
|
|
$ |
231,361 |
|
|
|
$ |
211,652 |
|
|
Net Income/ (Loss) |
$ |
517 |
|
|
$ |
(22,815 |
) |
|
|
$ |
(13,081 |
) |
|
|
$ |
(14,851 |
) |
|
Adjusted Net
Income |
$ |
5,103 |
(1) |
|
$ |
10,357 |
|
(5) |
|
$ |
36,694 |
|
(3) |
|
$ |
21,781 |
|
(6) |
Net cash provided by
operating activities |
$ |
17,671 |
|
|
$ |
15,935 |
|
|
|
$ |
68,319 |
|
|
|
$ |
53,499 |
|
|
EBITDA |
$ |
26,609 |
|
|
$ |
3,939 |
|
|
|
$ |
89,791 |
|
|
|
$ |
99,344 |
|
|
Adjusted EBITDA |
$ |
30,983 |
(2) |
|
$ |
37,111 |
|
(5) |
|
$ |
139,145 |
|
(4) |
|
$ |
133,059 |
|
(7) |
Loss per Common Unit
(basic and diluted) |
$ |
— |
|
|
$ |
(0.15 |
) |
|
|
$ |
(0.08 |
) |
|
|
$ |
(0.11 |
) |
|
Adjusted Earnings per
Common Unit (basic and diluted) |
$ |
0.03 |
(1) |
|
$ |
0.07 |
|
(5) |
|
$ |
0.22 |
|
(3) |
|
$ |
0.16 |
|
(6) |
Operating Surplus |
$ |
14,819 |
|
|
$ |
25,503 |
|
|
|
$ |
77,853 |
|
|
|
$ |
92,615 |
|
|
Maintenance and
Replacement Capital Expenditure Reserve |
$ |
6,969 |
|
|
$ |
4,058 |
|
|
|
$ |
26,787 |
|
|
|
$ |
14,859 |
|
|
(1) |
|
Adjusted Net Income and
Adjusted Earnings per Common Unit for the three month period ended
December 31, 2018 have been adjusted to exclude a $2.0 million
write down of a guarantee claim receivable, a $1.2 million
impairment loss related to the sale of one of our vessels, a $0.6
million equity compensation expense, a $0.6 million other than
temporary impairment on dividend in kind and a $0.2 million
write-off of deferred finance fees related to a $21.6 million debt
repayment in the fourth quarter of 2018. |
|
|
|
(2) |
|
Adjusted EBITDA for the
three month period ended December 31, 2018 has been adjusted to
exclude a $2.0 million write down of a guarantee claim receivable,
a $1.2 million impairment loss related to the sale of one of our
vessels, a $0.6 million equity compensation expense and a $0.6
million other than temporary impairment on dividend in kind. |
|
|
|
(3) |
|
Adjusted Net Income and
Adjusted Earnings per Common Unit for the year ended December 31,
2018 have been adjusted to exclude a $44.3 million impairment
loss related to the sale of four of our vessels, a $2.5 million
equity compensation expense, a $2.0 million write down of a
guarantee claim receivable, a $0.6 million other than temporary
impairment on dividend in kind and a $0.4 million write-off of
deferred finance fees related to a $20.2 million debt repayment in
the third quarter of 2018 and a $21.6 million debt repayment in the
fourth quarter of 2018. |
|
|
|
(4) |
|
Adjusted EBITDA for the
year ended December 31, 2018 has been adjusted to exclude a $44.3
million impairment loss related to the sale of four of our vessels,
a $2.5 million equity compensation expense, a $2.0 million write
down of a guarantee claim receivable and a $0.6 million other than
temporary impairment on dividend in kind. |
|
|
|
(5) |
|
Adjusted Net Income,
Adjusted EBITDA and Adjusted Earnings per Common Unit for the three
month period ended December 31, 2017 have been adjusted to exclude
a $30.3 million impairment loss on one of our vessels, a $2.4
million impairment loss related to the sale of one of our vessels
and a $0.5 million equity compensation expense. |
|
|
|
(6) |
|
Adjusted Net Income and
Adjusted Earnings per Common Unit for the year ended December 31,
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 $30.3 million impairment
loss on one of our vessels, a $2.4 million impairment loss related
to the sale of one of our vessels, a $1.9 million equity
compensation expense, a $1.5 million allowance for doubtful
accounts, a $1.3 million loss related to the sale of one of our
vessels and a $0.4 million relating to the reactivation costs of
four laid-up vessels of Navios Containers. |
|
|
|
(7) |
|
Adjusted EBITDA for the
year ended December 31, 2017 has been adjusted to exclude a $4.1
million gain on change in control from Navios Containers’
deconsolidation, a $30.3 million impairment loss on one of our
vessels, a $2.4 million impairment loss related to the sale of one
of our vessels, a $1.9 million equity compensation expense, a $1.5
million allowance for doubtful accounts, a $1.3 million loss
related to the sale of one of our vessels and a $0.4 million
relating to the reactivation costs of four laid-up vessels of
Navios Containers. |
|
|
|
Three month periods ended December 31, 2018 and
2017
Time charter and voyage revenues for Navios
Partners for the three month period ended December 31, 2018
decreased by $1.7 million, or 2.9%, to $57.5 million, as
compared to $59.3 million for the same period in 2017. The
decrease in time charter and voyage revenues was mainly
attributable to: (i) the decrease in revenue due to the sales of
the Navios Gemini S in December 2017, the YM Unity and the YM
Utmost in July 2018 and the Navios Felicity and the Navios Libra II
in December 2018; and (ii) the decrease in the time charter
equivalent rate, or TCE rate, to $15,632 per day for the three
month period ended December 31, 2018, from $17,160 per day for the
three month period ended December 31, 2017. That decrease was
partially mitigated by the increase in revenue following the
acquisition of seven vessels in 2017 and five vessels in 2018. The
available days of the fleet increased to 3,469 days for the three
month period ended December 31, 2018, as compared to 3,376
days for the three month period ended December 31, 2017,
mainly due to the increased size of the fleet.
EBITDA of Navios Partners for the three month
period ended December 31, 2018 was negatively affected by the
accounting effect of a: (i) $1.2 million impairment loss on the
sale of the Navios Libra II; (ii) $0.6 million equity compensation
expense; (iii) $0.6 million other than temporary impairment on
dividend in kind; and (iv) $2.0 million write down of a guarantee
claim receivable. EBITDA of Navios Partners for the three month
period ended December 31, 2017 was negatively affected by the
accounting effect of a: (i) $30.3 million impairment loss on the
Navios Hope; (ii) $2.4 million impairment loss on the sale of the
Navios Gemini S; and (iii) $0.5 million equity compensation
expense. Excluding these items, Adjusted EBITDA decreased by $6.1
million to $31.0 million for the three month period ended
December 31, 2018, as compared to $37.1 million for the same
period in 2017. The decrease in Adjusted EBITDA was primarily due
to a: (i) $1.7 million decrease in revenue; (ii) $2.0 million
increase in time charter and voyage expenses; (iii) $0.4 million
increase in management fees; (iv) $0.6 million increase in general
and administrative expenses; (v) $0.6 million increase in other
expenses; and (vi) $0.9 million decrease in equity in net earnings
of affiliated companies.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
December 31, 2018 and 2017 were $7.0 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 December 31, 2018 of
$14.8 million, as compared to $25.5 million for the three
month period ended December 31, 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 December 31, 2018 was negatively affected by the
accounting effect of a: (i) $1.2 million impairment loss on the
sale of the Navios Libra II; (ii) $0.6 million equity compensation
expense; (iii) $0.6 million other than temporary impairment on
dividend in kind; (iv) $0.2 million write-off of deferred finance
fees; and (v) $2.0 million write down of a guarantee claim
receivable. Net Income of Navios Partners for the three month
period ended December 31, 2017 was negatively affected by the
accounting effect of a: (i) $30.3 million impairment loss on the
Navios Hope; (ii) $2.4 million impairment loss on the sale of the
Navios Gemini S; and (iii) $0.5 million equity compensation
expense. Excluding these items, Adjusted Net Income for the three
month period ended December 31, 2018 amounted to $5.1 million
compared to $10.4 million for the three month period ended December
31, 2017. The decrease in Adjusted Net Income of $5.3 million was
due to a: (i) $6.1 million decrease in adjusted EBITDA; and (ii)
$1.3 million increase in interest expense and finance cost, net.
The above decrease was partially mitigated by a: (i) $0.2 million
decrease in direct vessel expenses; (ii) $1.7 million decrease in
depreciation and amortization expense; and (iii) $0.3 million
increase in interest income.
Years ended December 31, 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 year ended December 31, 2018 increased by
$32.1 million, or 16.1%, to $231.4 million, as compared
to $199.3 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 $16,458 per day for the year ended December 31, 2018, from
$16,025 per day for the year ended December 31, 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, the YM Utmost, the Navios Felicity and the Navios
Libra II in 2018. The available days of the fleet increased to
13,448 days for the year ended December 31, 2018, as compared
to 12,193 days for the year ended December 31, 2017, mainly
due to the increased fleet.
EBITDA of Navios Partners for the year ended
December 31, 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) $2.5 million equity compensation
expense; (iv) $2.0 million write down of a guarantee claim
receivable; (v) $1.2 million impairment loss on the sale of the
Navios Libra II; and (vi) $0.6 million other than temporary
impairment on dividend in kind. EBITDA of Navios Partners for the
year ended December 31, 2017 was negatively affected by the
accounting effect of a: (i) $4.1 million gain on change in control
from Navios Containers’ deconsolidation; (ii) $30.3 million
impairment loss on the Navios Hope; (iii) $2.4 million impairment
loss on the sale of the Navios Gemini S; (iv) $1.5 million
allowance for doubtful accounts; (v) $1.3 million loss related to
the sale of the MSC Cristina; and (vi) $1.9 million equity
compensation expense. Excluding these items, Adjusted EBITDA
increased by $12.6 million to $139.1 million for the year ended
December 31, 2018, as compared to $126.6 million for the same
period in 2017. The increase in Adjusted EBITDA was primarily due
to a: (i) $32.1 million increase in revenue; and (ii) $3.7 million
increase in equity in net earnings of affiliated companies. The
above increase was partially mitigated by: (i) a $6.1 million
increase in time charter and voyage expenses; (ii) a $6.3 million
increase in management fees; (iii) a $1.4 million increase in
general and administrative expenses; (iv) a $8.3 million decrease
in other income; and (v) a $1.0 million increase in other
expenses.
The reserves for estimated maintenance and
replacement capital expenditures for the year ended
December 31, 2018 and 2017 were $26.8 million and $14.9
million, respectively (please see “Reconciliation of Non-GAAP
Financial Measures” in Exhibit 3).
Navios Partners generated an operating surplus
for the year ended December 31, 2018 of $77.9 million,
compared to $92.6 million for the year period ended
December 31, 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 year ended
December 31, 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) $2.5 million equity compensation
expense; (iv) $2.0 million write down of a guarantee claim
receivable; (v) $1.2 million impairment loss on the sale of the
Navios Libra II; (vi) $0.6 million other than temporary impairment
on dividend in kind; and (vii) $0.4 million write-off of deferred
finance fees. Net Income of Navios Partners for the year ended
December 31, 2017 was negatively affected by the accounting effect
of a: (i) $4.1 million gain on change in control from Navios
Containers’ deconsolidation; (ii) $30.3 million impairment loss on
the Navios Hope; (iii) $2.4 million impairment loss on the sale of
the Navios Gemini S; (iv) $3.2 million write-off of deferred
finance fees and discount related to the refinancing of the Term
Loan B Facility; (v) $1.5 million allowance for doubtful accounts;
(vi) $1.3 million loss related to the sale of the MSC Cristina; and
(vii) $1.9 million equity compensation expense. Excluding these
items, Adjusted Net Income for the year ended December 31, 2018
amounted to $36.7 million compared to $21.0 million for the year
ended December 31, 2017. The increase in Adjusted Net Income of
$15.7 million was due to: (i) a $12.6 million increase in Adjusted
EBITDA; (ii) a $0.5 million decrease in direct vessel expenses;
(iii) a $9.6 million decrease in depreciation and amortization
expense; and (iv) a $0.9 million increase in interest income. The
above increase was partially mitigated by a $7.9 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
month periods and years ended December 31, 2018 and 2017
(excluding Navios Containers).
|
Three Month Period
EndedDecember 31, 2018 (unaudited) |
|
|
Three Month Period
EndedDecember 31, 2017 (unaudited) |
|
|
Year EndedDecember 31, 2018 (unaudited) |
|
|
Year
EndedDecember 31, 2017 (unaudited) |
|
Available Days(1) |
3,469 |
|
|
|
3,376 |
|
|
|
13,448 |
|
|
|
12,193 |
|
Operating Days(2) |
3,428 |
|
|
|
3,357 |
|
|
|
13,303 |
|
|
|
12,071 |
|
Fleet
Utilization(3) |
98.8 |
% |
|
|
99.4 |
% |
|
|
98.9 |
% |
|
|
99.0 |
% |
Time Charter Equivalent
Combined (per day) (4) |
$ |
15,632 |
|
|
$ |
17,160 |
|
|
$ |
16,458 |
|
|
$ |
16,025 |
|
Time Charter Equivalent
Drybulk (per day) (4) |
$ |
13,326 |
|
|
$ |
13,689 |
|
|
$ |
13,569 |
|
|
$ |
11,505 |
|
Time Charter Equivalent
Containers (per day) (4) |
$ |
30,716 |
|
|
$ |
31,883 |
|
|
$ |
31,302 |
|
|
$ |
31,649 |
|
Vessels operating at
period end |
37 |
|
|
|
36 |
|
|
|
37 |
|
|
|
36 |
|
(1) |
|
Available days for the fleet represent total calendar days the
vessels were in Navios Partners’ possession for the relevant period
after subtracting off-hire days associated with scheduled repairs,
dry dockings or special surveys and ballast days relating to
voyages. The shipping industry uses available days to measure the
number of days in a relevant period during which a vessel is
capable of generating revenues. |
|
|
|
(2) |
|
Operating days are the number of available days in the relevant
period less the aggregate number of days that the vessels are
off-hire due to any reason, including unforeseen circumstances. The
shipping industry uses operating days to measure the aggregate
number of days in a relevant period during which vessels actually
generate revenues. |
|
|
|
(3) |
|
Fleet
utilization is the percentage of time that Navios Partners’ vessels
were available for revenue generating available days, and is
determined by dividing the number of operating days during a
relevant period by the number of available days during that period.
The shipping industry uses fleet utilization to measure efficiency
in finding employment for vessels and minimizing the amount of days
that its vessels are off-hire for reasons other than scheduled
repairs, dry dockings or special surveys. |
|
|
|
(4) |
|
TCE
rate: Time Charter Equivalent rate per day is defined as voyage and
time charter revenues less voyage expenses during a period divided
by the number of available days during the period. The TCE rate per
day is a standard shipping industry performance measure used
primarily to present the actual daily earnings generated by vessels
on various types of charter contracts for the number of available
days of the fleet. |
Conference Call Details:
Navios Partners' management will host a
conference call today, Thursday, January 31, 2019 to discuss the
results for the fourth quarter and year ended December 31,
2018.
Call Date/Time: Thursday, January 31, 2019 at 8:30 am ET Call
Title: Navios Partners Q4 2018 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 578 7986The 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: 578 7986
Slides and audio webcast:
There will also be a live webcast of the
conference call, through the Navios Partners website
(www.navios-mlp.com) under “Investors”. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.
A supplemental slide presentation will be
available on the Navios Partners’ website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Partners
L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a
publicly traded master limited partnership which owns and operates
dry cargo vessels. For more information, please visit our website
at www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events including Navios
Partners’ expected cash flow generation, future contracted
revenues, future distributions and its ability to have a dividend
going forward, opportunities to reinvest cash accretively in a
fleet renewal program or otherwise, potential capital gains, our
ability to take advantage of dislocation in the market and Navios
Partners’ growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further
time charters. Words such as “may”, “expects”, “intends”, “plans”,
“believes”, “anticipates”, “hopes”, “estimates”, and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters.
These forward-looking statements are based on
the information available to, and the expectations and assumptions
deemed reasonable by Navios Partners at the time these statements
were made. Although Navios Partners believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates which are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of Navios Partners. Actual
results may differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to,
uncertainty relating to global trade, including prices of seaborne
commodities and continuing issues related to seaborne volume and
ton miles, our continued ability to enter into long-term time
charters, our ability to maximize the use of our vessels, expected
demand in the dry cargo shipping sector in general and the demand
for our Panamax, Capesize, UltraHandymax 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
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) |
|
|
|
|
December 31,
2018 (unaudited) |
|
December 31,
2017 (unaudited) |
ASSETS |
|
|
Cash and cash
equivalents, including restricted cash |
$ |
61,455 |
|
$ |
29,933 |
Vessels, net |
|
1,043,250 |
|
|
1,099,015 |
Other assets (including
current and non-current) |
|
205,096 |
|
|
168,274 |
Intangible assets |
|
4,332 |
|
|
8,080 |
Total
assets |
$ |
1,314,133 |
|
$ |
1,305,302 |
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
Other current
liabilities |
$ |
25,529 |
|
$ |
27,661 |
Current portion of
long-term borrowings, net |
|
26,804 |
|
|
26,586 |
Long-term borrowings,
net of current portion |
|
480,681 |
|
|
466,877 |
Other non-current
liabilities |
|
4,366 |
|
|
16,468 |
Total partners’
capital |
|
776,753 |
|
|
767,710 |
Total
liabilities and partners’ capital |
$ |
1,314,133 |
|
$ |
1,305,302 |
|
|
|
|
NAVIOS MARITIME PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Expressed in thousands of U.S. Dollars except unit
and per unit data) |
|
|
Three Month Period Ended
December 31, 2018 (unaudited) |
|
Three Month Period Ended
December 31, 2017 (unaudited) |
|
Year Ended December 31, 2018
(unaudited) |
|
Year Ended December 31, 2017
(unaudited) |
Time charter and voyage
revenues |
$ |
57,542 |
|
|
$ |
59,269 |
|
|
$ |
231,361 |
|
|
$ |
211,652 |
|
Time charter and voyage
expenses |
|
(3,319 |
) |
|
|
(1,342 |
) |
|
|
(10,024 |
) |
|
|
(4,158 |
) |
Direct vessel
expenses |
|
(1,495 |
) |
|
|
(1,649 |
) |
|
|
(6,180 |
) |
|
|
(7,172 |
) |
Management fees
(entirely through related parties transactions) |
|
(17,579 |
) |
|
|
(17,221 |
) |
|
|
(68,871 |
) |
|
|
(67,310 |
) |
General and
administrative expenses |
|
(5,924 |
) |
|
|
(5,198 |
) |
|
|
(18,458 |
) |
|
|
(17,163 |
) |
Depreciation and
amortization |
|
(14,519 |
) |
|
|
(16,221 |
) |
|
|
(58,334 |
) |
|
|
(72,760 |
) |
Vessel impairment
losses |
|
(1,226 |
) |
|
|
(32,677 |
) |
|
|
(44,344 |
) |
|
|
(32,677 |
) |
Interest expense and
finance cost, net |
|
(11,380 |
) |
|
|
(9,844 |
) |
|
|
(42,766 |
) |
|
|
(38,225 |
) |
Interest income |
|
1,302 |
|
|
|
961 |
|
|
|
4,408 |
|
|
|
3,277 |
|
Gain on change in
control |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,068 |
|
Other income/
(expense), net |
|
(2,240 |
) |
|
|
300 |
|
|
|
(3,830 |
) |
|
|
4,751 |
|
Equity in net earnings
of affiliated companies |
|
(645 |
) |
|
|
807 |
|
|
|
3,957 |
|
|
|
866 |
|
Net
income/ (loss) |
$ |
517 |
|
|
$ |
(22,815 |
) |
|
$ |
(13,081 |
) |
|
$ |
(14,851 |
) |
Less: Net income
attributable to the noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
(239 |
) |
Net income/
(loss) attributable to Navios Partners unitholders |
$ |
517 |
|
|
$ |
(22,815 |
) |
|
$ |
(13,081 |
) |
|
$ |
(15,090 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per unit:
|
|
Three Month
Period Ended December 31,
2018 (unaudited) |
|
Three Month
Period Ended December 31,
2017 (unaudited) |
|
Year Ended
December 31, 2018
(unaudited) |
|
Year Ended
December 31, 2017
(unaudited) |
Loss per unit: |
|
|
|
|
|
|
|
Common unit (basic and
diluted) |
$ |
— |
|
$ |
(0.15 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS L.P. |
Other Financial Information |
(Expressed in thousands of U.S. Dollars except unit
data) |
|
|
|
|
Year Ended December 31, 2018
(Unaudited) |
|
Year Ended December 31, 2017
(Unaudited) |
Net cash provided by
operating activities |
$ |
68,319 |
|
|
$ |
53,499 |
|
Net cash used in
investing activities |
|
(67,888 |
) |
|
|
(187,211 |
) |
Net cash provided by
financing activities |
|
31,091 |
|
|
|
138,557 |
|
Net increase in
cash, cash equivalents and restricted cash |
$ |
31,522 |
|
|
$ |
4,845 |
|
|
|
|
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
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 |
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 vessel disposal, vessels impairment losses, allowance for
doubtful accounts, reactivation costs, gain on change in control,
other than temporary impairment on dividend in kind and write-down
of a guarantee claim receivable. 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; (xv)
non-cash accrued interest income from receivable from affiliates;
and (xvi) write-down of a guarantee claim receivable. 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);À
- 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 EndedDecember 31, 2018($
‘000)(unaudited) |
|
Three MonthPeriod EndedDecember 31, 2017($
‘000)(unaudited) |
|
Year EndedDecember 31, 2018($
‘000)(unaudited) |
|
|
Year EndedDecember 31, 2017($
‘000)(unaudited) |
Net cash provided by
operating activities |
$ |
17,671 |
|
|
$ |
15,935 |
|
(2) |
|
$ |
68,319 |
|
|
$ |
53,499 |
|
(2) |
Net increase in
operating assets |
|
945 |
|
|
|
9,234 |
|
(2) |
|
|
19,926 |
|
|
|
35,532 |
|
(2) |
Net increase in
operating liabilities |
|
1,132 |
|
|
|
811 |
|
|
|
|
2,542 |
|
|
|
5,033 |
|
|
Net interest cost |
|
10,078 |
|
|
|
8,883 |
|
|
|
|
38,358 |
|
|
|
34,949 |
|
|
Amortization and
write-off of deferred financing cost |
|
(1,933 |
) |
|
|
(1,779 |
) |
|
|
|
(7,258 |
) |
|
|
(9,744 |
) |
|
Non cash accrued
interest income and amortization of deferred revenue |
|
3,158 |
|
|
|
3,154 |
|
|
|
|
12,522 |
|
|
|
12,512 |
|
|
Equity compensation
expense |
|
(588 |
) |
|
|
(495 |
) |
|
|
|
(2,450 |
) |
|
|
(1,904 |
) |
|
Gain on change in
control |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
4,068 |
|
|
Vessels impairment
loss |
|
(1,226 |
) |
|
|
(32,677 |
) |
|
|
|
(44,344 |
) |
|
|
(32,677 |
) |
|
Non cash accrued
interest income from receivable from affiliates |
|
70 |
|
|
|
66 |
|
|
|
|
272 |
|
|
|
204 |
|
|
Allowance for doubtful
accounts |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(1,495 |
) |
|
Loss on vessel
disposal |
|
(53 |
) |
|
|
— |
|
|
|
|
(53 |
) |
|
|
(1,260 |
) |
|
Noncontrolling
interest |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(239 |
) |
|
Write down of guarantee
claim receivable |
|
(2,000 |
) |
|
|
— |
|
|
|
|
(2,000 |
) |
|
|
— |
|
|
Equity in earnings of
affiliates, net of dividends received |
|
(645 |
) |
|
|
807 |
|
|
|
|
3,957 |
|
|
|
866 |
|
|
EBITDA(1) |
$ |
26,609 |
|
|
$ |
3,939 |
|
|
|
$ |
89,791 |
|
|
$ |
99,344 |
|
|
Allowance for doubtful
accounts |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,495 |
|
|
Loss on vessel
disposal |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,260 |
|
|
Equity compensation
expense |
|
588 |
|
|
|
495 |
|
|
|
|
2,450 |
|
|
|
1,904 |
|
|
Reactivation cost |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
447 |
|
|
Gain on change in
control |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(4,068 |
) |
|
Vessels impairment
loss |
|
1,226 |
|
|
|
32,677 |
|
|
|
|
44,344 |
|
|
|
32,677 |
|
|
Other than temporary
impairment on dividend in kind |
|
560 |
|
|
|
— |
|
|
|
|
560 |
|
|
|
— |
|
|
Write down of guarantee
claim receivable |
|
2,000 |
|
|
|
— |
|
|
|
|
2,000 |
|
|
|
— |
|
|
Adjusted
EBITDA |
$ |
30,983 |
|
|
$ |
37,111 |
|
|
|
$ |
139,145 |
|
|
$ |
133,059 |
|
|
Cash interest
income |
|
193 |
|
|
|
235 |
|
|
|
|
739 |
|
|
|
1,045 |
|
|
Cash interest paid |
|
(9,388 |
) |
|
|
(7,785 |
) |
|
|
|
(35,244 |
) |
|
|
(26,630 |
) |
|
Maintenance and
replacement capital expenditures |
|
(6,969 |
) |
|
|
(4,058 |
) |
|
|
|
(26,787 |
) |
|
|
(14,859 |
) |
|
Operating
Surplus |
$ |
14,819 |
|
|
$ |
25,503 |
|
|
|
$ |
77,853 |
|
|
$ |
92,615 |
|
|
Cash distribution paid
relating to the first three quarters of the year |
|
— |
|
|
|
— |
|
|
|
|
(10,261 |
) |
|
|
— |
|
|
Cash reserves |
|
(11,369 |
) |
|
|
(25,503 |
) |
|
|
|
(64,142 |
) |
|
|
(92,615 |
) |
|
Available cash
for distribution |
$ |
3,450 |
|
|
$ |
— |
|
|
|
$ |
3,450 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period Ended
December 31, 2018 (Unaudited) |
|
Three Month Period Ended
December 31, 2017 (Unaudited) |
|
Year Ended December 31, 2018
(Unaudited) |
|
Year Ended December 31, 2017
(Unaudited) |
Net cash provided by
operating activities |
$ |
17,671 |
|
|
$ |
15,935 |
|
|
$ |
68,319 |
|
|
$ |
53,499 |
|
Net cash provided by/
(used in) investing activities |
$ |
5,437 |
|
|
$ |
(7,685 |
) |
|
$ |
(67,888 |
) |
|
$ |
(187,211 |
) |
Net cash (used in)/
provided by financing activities |
$ |
(9,101 |
) |
|
$ |
(9,678 |
) |
|
$ |
31,091 |
|
|
$ |
138,557 |
|
(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 month
period and year ended December 31, 2017. |
Navios Maritime Partners (NYSE:NMM)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Navios Maritime Partners (NYSE:NMM)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024