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, 2019.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “I am pleased with the results
for the fourth quarter and full year of 2019. For the fourth
quarter, Navios Partners reported $33.7 million in EBITDA, $12.2
million in Adjusted Net Income and $1.11 in Adjusted Earnings per
Common Unit. For the full year of 2019, Navios Partners reported
$120.0 million in Adjusted EBITDA, $26.9 million in Adjusted Net
Income and $2.43 in Adjusted Earnings per Common Unit.”
Angeliki Frangou continued, “The drybulk market
has been adversely affected by the Chinese New Year and the fear
and uncertainty caused by the global coronavirus outbreak. Because
the situation is too fluid, we are unable to provide any meaningful
indication of the effect on our 2020 activity, but we are closely
monitoring the events.”
Cash Distribution
The Board of Directors of Navios Partners
declared a cash distribution for the fourth quarter of 2019 of
$0.30 per unit. The cash distribution is payable on February 13,
2020 to all unitholders of record as of February 11, 2020.
Acquisition of vessels
On December 14, 2019, Navios Partners took
delivery of five containerships upon the liquidation of Navios
Europe Inc. (“Navios Europe I”).
Navios Partners received approximately $ 49.6
million in satisfaction of the amount payable from Navios Europe I
to Navios Partners. Separately, Navios Partners assumed a $23.5
million loan from a commercial bank, with interest at LIBOR plus
400 basis points (“bps”) and a maturity in September
2020.
On November 25, 2019, Navios Partners entered
into a share purchase agreement for the acquisition of four drybulk
vessels from an entity affiliated with its Chairman and CEO for
$37.0 million (plus working capital adjustments) in a transaction
approved by the Conflicts Committee of the Board of Directors of
Navios Partners. The vessels were delivered to Navios Partners’
owned fleet on December 17, 2019.
The four vessels were financed with a $37.0
million loan from a financial institution with an amortization
profile of ten years, annual interest of LIBOR plus 475 bps, and
maturity in 2022. The loan facility has no capital repayment until
September 2020 and may be prepaid at any time without
penalty.
Agreements for two Bareboat Charter-in
Vessels
On October 18, 2019, Navios Partners agreed to
bareboat charter-in two newbuilding Kamsarmax vessels. Each
vessel has approximately 81,000 dwt and is being bareboat
chartered-in for ten years. Navios Partners has the option to
acquire the vessels after the end of the fourth year for the
remaining period of the bareboat charter. Assuming exercise
of the option at the end of the ten-year period, the implied fixed
interest rate is 4.5%.
The vessels are expected to be delivered in the
first half of 2021.
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 77.1% of its available days for 2020,
33.9% for 2021 and 15.4% for 2022, including index-linked charters,
expecting to generate revenues (excluding index-linked charters) of
approximately $123.4 million, $82.7 million and $71.9 million,
respectively. The average contracted daily charter-out rate for the
fleet is $17,247, $27,397 and $28,637 for 2020, 2021 and 2022,
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, 2019 and 2018. The quarterly
information was derived from the unaudited condensed consolidated
financial statements for the respective periods. Adjusted EBITDA,
Adjusted Earnings per Common Unit, Adjusted Net Income and
Operating Surplus are non-GAAP financial measures and should not be
used in isolation or substitution for Navios Partners’ results
calculated in accordance with U.S. generally accepted accounting
principles (“U.S. GAAP”).
|
Three Month |
Three Month |
|
|
|
Period Ended |
Period Ended |
Year Ended |
Year Ended |
|
December 31,2019 |
December 31, 2018 |
December 31, 2019 |
December 31, 2018 |
(in $‘000 except per
unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenue |
$ |
61,268 |
|
$ |
57,542 |
|
$ |
219,379 |
|
$ |
231,361 |
|
Net (Loss)/ Income |
$ |
(62,947 |
) |
$ |
517 |
|
$ |
(62,134 |
) |
$ |
(13,081 |
) |
Adjusted Net Income |
$ |
12,168 |
(1)(2) |
$ |
5,103 |
(3)(4) |
$ |
26,861 |
(5)(6) |
$ |
36,694 |
(7)(8) |
Net cash provided by operating
activities |
$ |
23,300 |
|
$ |
17,671 |
|
$ |
70,395 |
|
$ |
68,319 |
|
EBITDA |
$ |
(38,202 |
) |
$ |
26,609 |
|
$ |
37,119 |
|
$ |
89,791 |
|
Adjusted EBITDA |
$ |
33,736 |
(1) |
$ |
30,983 |
(3) |
$ |
120,040 |
(5) |
$ |
139,145 |
(7) |
(Loss)/ Income per Common Unit
(basic and diluted) |
$ |
(5.72 |
) |
$ |
0.05 |
|
$ |
(5.62 |
) |
$ |
(1.18 |
) |
Adjusted Earnings per Common
Unit (basic and diluted) |
$ |
1.11 |
(1)(2) |
$ |
0.45 |
(3)(4) |
$ |
2.43 |
(5)(6) |
$ |
3.32 |
(7)(8) |
Operating Surplus |
$ |
21,123 |
|
$ |
14,819 |
|
$ |
58,758 |
|
$ |
77,853 |
|
Maintenance and Replacement
Capital Expenditure Reserve |
$ |
7,152 |
|
$ |
6,969 |
|
$ |
29,039 |
|
|
26,787 |
|
- Adjusted EBITDA, Adjusted Net
Income and Adjusted Earnings per Common Unit for the three month
period ended December 31, 2019 have been adjusted to exclude a
$29.3 million impairment loss related to one of our vessels and a
$42.6 million other than temporary impairment loss (“OTTI”) in
an investment in Navios Maritime Containers L.P. (“Navios
Containers Investment”).
- Adjusted Net Income and Adjusted
Earnings per Common Unit for the three month period ended December
31, 2019 have been adjusted to exclude a $3.2 million write-off of
deferred finance fees and discount related to prepayments of the
Term Loan B Facility in the fourth quarter of 2019.
- Adjusted EBITDA, 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 and a $0.6 million other than
temporary impairment on dividend in kind.
- Adjusted Net Income and Adjusted
Earnings per Common Unit for the three months ended December 31,
2018 have been adjusted to exclude a $0.2 million write-off of
deferred finance fees.
- Adjusted EBITDA, Adjusted Net
Income and Adjusted Earnings per Common Unit for the year ended
December 31, 2019 have been adjusted to exclude a $29.3 million
impairment loss related to one of our vessels, a $42.6 million OTTI
loss in Navios Containers Investment, a $7.3 million impairment
loss related to the sale of one of our vessels and a $3.6 million
revision of the estimated guarantee claim receivable.
- Adjusted Net Income and Adjusted
Earnings per Common Unit for the year ended December 31, 2019 have
been adjusted to exclude a $6.1 million write-off of deferred
finance fees and discount related to prepayments of the Term Loan B
Facility.
- Adjusted EBITDA, 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 and a $0.6 million other than
temporary impairment on dividend in kind.
- Adjusted Net Income and Adjusted
Earnings per Common Unit for the year ended December 31, 2018 have
been adjusted to exclude a $0.4 million write-off of deferred
finance fees.
Three month periods ended December 31,
2019 and 2018
Time charter and voyage revenues for the three
month period ended December 31, 2019 increased by
$3.7 million, or 6.5%, to $61.3 million, as compared to
$57.5 million for the same period in 2018. The increase in
time charter and voyage revenues was mainly attributable to the
increase in the time charter equivalent rate, or TCE rate, to
$16,981 per day for the three month period ended December 31, 2019,
from $15,632 per day for the three month period ended December 31,
2018. The available days of the fleet decreased to 3,450 days for
the three month period ended December 31, 2019, as compared to
3,469 days for the three month period ended December 31, 2018.
EBITDA for the three month period ended December
31, 2019 was negatively affected by the accounting effect of a: (i)
$29.3 million impairment loss on one of our vessels; and (ii) $42.6
million OTTI loss in Navios Containers Investment. EBITDA
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. Excluding these items,
Adjusted EBITDA increased by $2.8 million to $33.7 million for the
three month period ended December 31, 2019, as compared to $31.0
million for the same period in 2018. The increase in Adjusted
EBITDA was primarily due to a: (i) $3.7 million increase in
revenue; (ii) $0.7 million decrease in other expense; and (iii)
$1.1 million increase in equity in net earnings of affiliated
companies. The above decrease was partially mitigated by a: (i)
$0.3 million increase in time charter and voyage expenses; (ii)
$1.2 million increase in general and administrative expenses; (iii)
$0.8 million increase in management fees; and (iv) $0.3 million
decrease in other income.
The reserves for estimated maintenance and
replacement capital expenditures for the three month periods ended
December 31, 2019 and 2018 were $7.2 million and $7.0 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, 2019 of $21.1
million, as compared to $14.8 million for the three month
period ended December 31, 2018. Operating Surplus is a non-GAAP
financial measure used by certain investors to assist in evaluating
a partnership’s ability to make quarterly cash distributions
(please see “Reconciliation of Non-GAAP Financial Measures” in
Exhibit 3).
Net Income for the three month period ended
December 31, 2019 was negatively affected by the accounting effect
of a: (i) $3.2 million write-off of deferred finance fees and
discount related to prepayments of the Term Loan B Facility in the
fourth quarter of 2019; (ii) $29.3 million impairment loss of one
of our vessels; and (iii) $42.6 million OTTI loss in Navios
Containers Investment. Net Income 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. Excluding these
items, Adjusted Net Income for the three month period ended
December 31, 2019 amounted to $12.2 million compared to $5.1
million income for the three month period ended December 31, 2018.
The increase in Adjusted Net Income of $7.1 million was due to a:
(i) $2.8 million increase in Adjusted EBITDA; and (ii) $4.3 million
decrease in interest expense and finance cost, net; and (iii) $1.2
million decrease in depreciation and amortization expense. The
above increase was partially mitigated by a: (i) $0.5 million
decrease in interest income; and (ii) $0.7 million increase in
direct vessel expenses.
Years ended December 31, 2019 and
2018
Time charter and voyage revenues for the year
ended December 31, 2019 decreased by $12.0 million, or 5.2%,
to $219.4 million, as compared to $231.4 million for the same
period in 2018. The decrease in time charter and voyage revenues
was mainly attributable to the decrease in the TCE rate, to $15,791
per day for the year ended December 31, 2019, from $16,458 per day
for the year ended December 31, 2018. The available days of the
fleet decreased to 13,170 days for the year ended December 31,
2019, as compared to 13,448 days for the year ended December 31,
2018.
EBITDA for the year ended December 31, 2019 was
negatively affected by the accounting effect of a: (i) $7.3 million
impairment loss on the sale of the Navios Galaxy I; (ii) $3.6
million revision of the estimated guarantee claim receivable; (iii)
$29.3 million impairment loss on one of our vessels; and (iv) $42.6
million OTTI loss in Navios Containers Investment. EBITDA 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. Excluding these
items, Adjusted EBITDA decreased by $19.1 million to $120.0 million
for the year ended December 31, 2019, as compared to $139.1 million
for the same period in 2018. The decrease in Adjusted EBITDA was
primarily due to a: (i) $12.0 million decrease in revenue; (ii)
$2.3 million increase in time charter and voyage expenses; (iii)
$5.0 million increase in general and administrative expenses; (iv)
$2.0 million decrease in equity in net earnings of affiliated
companies; and (v) $0.5 million decrease in other income. The above
decrease was partially mitigated by a: (i) $0.7 million decrease in
management fees; and (ii) $2.0 million decrease in other
expenses.
The reserves for estimated maintenance and
replacement capital expenditures for the year ended December 31,
2019 and 2018 were $29.0 million and $26.8 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, 2019 of $58.8 million, as
compared to $77.9 million for the year ended December 31,
2018. Operating Surplus is a non-GAAP financial measure used by
certain investors to assist in evaluating a partnership’s ability
to make quarterly cash distributions (please see “Reconciliation of
Non-GAAP Financial Measures” in Exhibit 3).
Net Income for the year ended December 31, 2019
was negatively affected by the accounting effect of a: (i) $7.3
million impairment loss on the sale of the Navios Galaxy I; (ii)
$3.6 million revision of the estimated guarantee claim receivable;
(iii) $6.1 million write-off of deferred finance fees and discount
related to prepayments of the Term Loan B Facility in the year
ended December 31, 2019; (iv) $29.3 million impairment loss on one
of our vessels; and (v) $42.6 million OTTI loss in Navios
Containers Investment. Net Income 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.
Excluding these items, Adjusted Net Income for the year ended
December 31, 2019 amounted to $26.9 million compared to $36.7
million for the year ended December 31, 2018. The decrease in
Adjusted Net Income of $9.8 million was due to a: (i) $19.1 million
decrease in adjusted EBITDA; and (ii) $0.8 million increase in
direct vessel expenses. The above decrease was partially mitigated
by a: (i) $3.2 million decrease in interest expense and finance
cost, net; (ii) $5.1 million decrease in depreciation and
amortization expense; and (iii) $1.8 million increase in interest
income.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
month periods and year ended December 31, 2019 and 2018.
|
Three MonthPeriod
EndedDecember
31,2019(unaudited) |
|
Three Month Period
Ended December
31,2018 (unaudited) |
|
Year Ended December
31,2019 (unaudited) |
|
Year Ended December
31,2018 (unaudited) |
Available Days(1) |
|
3,450 |
|
|
|
3,469 |
|
|
|
13,170 |
|
|
|
13,448 |
|
Operating Days(2) |
|
3,428 |
|
|
|
3,428 |
|
|
|
13,014 |
|
|
|
13,303 |
|
Fleet Utilization(3) |
|
99.4 |
% |
|
|
98.8 |
% |
|
|
98.8 |
% |
|
|
98.9 |
% |
Time Charter Equivalent
Combined (per day) (4) |
$ |
16,981 |
|
|
$ |
15,632 |
|
|
$ |
15,791 |
|
|
$ |
16,458 |
|
Time Charter Equivalent
Drybulk (per day) (4) |
$ |
15,004 |
|
|
$ |
13,326 |
|
|
$ |
13,427 |
|
|
$ |
13,569 |
|
Time Charter Equivalent
Containerships (per day) (4) |
$ |
27,400 |
|
|
$ |
30,716 |
|
|
$ |
29,685 |
|
|
$ |
31,302 |
|
Vessels operating at period
end |
|
46 |
|
|
|
37 |
|
|
|
46 |
|
|
|
37 |
|
- 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.
- 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.
- 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.
- TCE rate: Time Charter Equivalent
rate per day is defined as voyage and time charter revenues less
voyage expenses during a period divided by the number of available
days during the period. The TCE rate per day is a standard shipping
industry performance measure used primarily to present the actual
daily earnings generated by vessels on various types of charter
contracts for the number of available days of the fleet.
Conference Call Details:
Navios Partners' management will host a
conference call on Monday, February 10, 2020 to discuss the results
for the fourth quarter and year ended December 31, 2019.
Call Date/Time: Monday, February 10, 2020 at 8:30 am ET Call
Title: Navios Partners Q4 2019 Financial Results Conference Call US
Dial In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 489 4651
The conference call replay will be available two
hours after the live call and remain available for one week at the
following numbers:
US Replay Dial In: +1.800.585.8367International Replay Dial In:
+1.404.537.3406 Conference ID: 489 4651
Slides and audio webcast:
There will also be a live webcast of the
conference call, through the Navios Partners website
(www.navios-mlp.com) under “Investors”. Participants to the live
webcast should register on the website approximately 10 minutes
prior to the start of the webcast.
A supplemental slide presentation will be
available on the Navios Partners’ website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Partners
L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a
publicly traded master limited partnership which owns and operates
dry cargo vessels. For more information, please visit our website
at www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events including Navios
Partners’ expected cash flow generation, future contracted
revenues, future distributions and its ability to have a dividend
going forward, opportunities to reinvest cash accretively in a
fleet renewal program or otherwise, potential capital gains, its
ability to take advantage of dislocation in the market and Navios
Partners’ growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further
time charters. Words such as “may,” “expects,” “intends,” “plans,”
“believes,” “anticipates,” “hopes,” “estimates,” and variations of
such words and similar expressions are intended to identify
forward-looking statements.
These forward-looking statements are based on
the information available to, and the expectations and assumptions
deemed reasonable by Navios Partners at the time these statements
were made. Although Navios Partners believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve risks and are based upon a
number of assumptions and estimates that are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Partners. Actual results may differ
materially from those expressed or implied by such forward-looking
statements.
Factors that could cause actual results to
differ materially include, but are not limited to, risks relating
to: uncertainty relating to global trade, including prices of
seaborne commodities and continuing issues related to seaborne
volume and ton miles, our continued ability to enter into long-term
time charters, our ability to maximize the use of our vessels,
expected demand in the dry cargo shipping sector in general and the
demand for our Panamax, Capesize, Ultra-Handymax and Containerships
in particular, fluctuations in charter rates for dry cargo carriers
and container vessels, the aging of our fleet and resultant
increases in operations costs, the loss of any customer or charter
or vessel, the financial condition of our customers, changes in the
availability and costs of funding due to conditions in the bank
market, capital markets and other factors, increases in costs and
expenses, including but not limited to: crew, insurance,
provisions, port expenses, lube oil, bunkers, repairs, maintenance
and general and administrative expenses, the expected cost of, and
our ability to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business,
general domestic and international political conditions,
competitive factors in the market in which Navios Partners
operates; risks associated with operations outside the United
States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Navios Partners’ expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based. Navios Partners
makes no prediction or statement about the performance of its
common units.
Contacts
Navios Maritime Partners L.P.+1 (212) 906
8645Investors@navios-mlp.com
Nicolas BornozisCapital Link, Inc.+1 (212) 661
7566naviospartners@capitallink.com
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P. SELECTED
BALANCE SHEET DATA(Expressed in thousands of U.S. Dollars
except unit data)
|
|
|
|
|
December 31, 2019
(unaudited) |
|
December 31,2018 (unaudited)
|
ASSETS |
|
|
|
Cash and cash equivalents, including restricted cash |
$ |
30,402 |
|
$ |
61,455 |
Vessels, net |
1,062,258 |
|
1,043,250 |
Other assets (including
current and non-current) |
157,691 |
|
205,096 |
Intangible assets |
3,166 |
|
4,332 |
Total
assets |
$ |
1,253,517 |
|
$ |
1,314,133 |
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
Other current liabilities |
$ |
20,004 |
|
$ |
25,529 |
Current portion of long-term
borrowings, net |
59,780 |
|
26,804 |
Long-term borrowings, net of
current portion |
429,248 |
|
480,681 |
Other non-current
liabilities |
16,466 |
|
4,366 |
Total partners’ capital |
728,019 |
|
776,753 |
Total liabilities and
partners’ capital |
$ |
1,253,517 |
|
$ |
1,314,133 |
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Expressed in thousands of U.S. Dollars except
unit and per unit data)
|
Three Month Period Ended December 31,2019
(unaudited) |
|
Three MonthPeriod EndedDecember
31,2018(unaudited) |
|
Year EndedDecember 31,2019(unaudited) |
|
Year EndedDecember 31,2018(unaudited) |
Time charter and voyage revenues |
$ |
61,268 |
|
|
$ |
57,542 |
|
|
$ |
219,379 |
|
|
$ |
231,361 |
|
Time charter and voyage
expenses |
(3,610 |
) |
|
(3,319 |
) |
|
(12,331 |
) |
|
(10,024 |
) |
Direct vessel expenses |
(2,162 |
) |
|
(1,495 |
) |
|
(6,985 |
) |
|
(6,180 |
) |
Management fees |
(18,387 |
) |
|
(17,579 |
) |
|
(68,188 |
) |
|
(68,871 |
) |
General and administrative
expenses |
(6,559 |
) |
|
(5,924 |
) |
|
(20,984 |
) |
|
(18,458 |
) |
Depreciation and
amortization |
(13,352 |
) |
|
(14,519 |
) |
|
(53,255 |
) |
|
(58,334 |
) |
Vessel impairment losses |
(29,335 |
) |
|
(1,226 |
) |
|
(36,680 |
) |
|
(44,344 |
) |
Interest expense and finance
cost, net |
(10,062 |
) |
|
(11,380 |
) |
|
(45,254 |
) |
|
(42,766 |
) |
Interest income |
780 |
|
|
1,302 |
|
|
6,172 |
|
|
4,408 |
|
Other income |
357 |
|
|
674 |
|
|
1,053 |
|
|
1,554 |
|
Other expense |
(265 |
) |
|
(2,914 |
) |
|
(4,990 |
) |
|
(5,384 |
) |
Equity in net earnings of
affiliated companies |
(41,620 |
) |
|
(645 |
) |
|
(40,071 |
) |
|
3,957 |
|
Net
(loss)/
income |
$ |
(62,947 |
) |
|
$ |
517 |
|
|
$ |
(62,134 |
) |
|
$ |
(13,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
Earnings per unit:
|
Three MonthPeriod EndedDecember
31,2019(unaudited) |
|
Three MonthPeriod EndedDecember
31,2018(unaudited) |
|
Year EndedDecember 31,2019(unaudited) |
|
Year EndedDecember 31,2018(unaudited) |
|
|
|
|
|
(Loss)/ Earnings per
unit: |
|
|
|
|
Common unit (basic and diluted) |
$ |
(5.72 |
) |
|
$ |
0.05 |
|
|
$ |
(5.62 |
) |
|
$ |
(1.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME PARTNERS
L.P.Other Financial Information(Expressed
in thousands of U.S. Dollars except unit data)
|
Year Ended December 31,2019 (unaudited)
|
|
Year EndedDecember 31,2018(unaudited) |
Net cash provided by operating activities |
$ |
70,395 |
|
|
$ |
68,319 |
|
Net cash
used in investing activities |
|
(17,034 |
) |
|
|
(67,888 |
) |
Net cash
(used in)/ provided by financing activities |
|
(84,414 |
) |
|
|
31,091 |
|
(Decrease)/ increase in cash, cash equivalents and
restricted cash |
$ |
(31,053 |
) |
|
$ |
31,522 |
|
|
|
|
|
|
|
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 |
First I |
|
Ultra-Handymax |
|
2008 |
|
58,735 |
Navios Hyperion |
|
Panamax |
|
2004 |
|
75,707 |
Navios Alegria |
|
Panamax |
|
2004 |
|
76,466 |
Navios Orbiter |
|
Panamax |
|
2004 |
|
76,602 |
Navios Anthos |
|
Panamax |
|
2004 |
|
75,798 |
Three Stars |
|
Panamax |
|
2005 |
|
74,759 |
Camelia |
|
Panamax |
|
2009 |
|
75,162 |
Navios Helios |
|
Panamax |
|
2005 |
|
77,075 |
Navios Hope |
|
Panamax |
|
2005 |
|
75,397 |
Navios Sun |
|
Panamax |
|
2005 |
|
76,619 |
Navios Sagittarius |
|
Panamax |
|
2006 |
|
75,756 |
Navios Harmony |
|
Panamax |
|
2006 |
|
82,790 |
Navios Prosperity I |
|
Panamax |
|
2007 |
|
75,527 |
Navios Libertas |
|
Panamax |
|
2007 |
|
75,511 |
Navios Symmetry |
|
Panamax |
|
2006 |
|
74,381 |
Navios Apollon I |
|
Panamax |
|
2005 |
|
87,052 |
Navios Altair I |
|
Panamax |
|
2006 |
|
74,475 |
Navios Sphera |
|
Panamax |
|
2016 |
|
84,872 |
Navios Fantastiks |
|
Capesize |
|
2005 |
|
180,265 |
Navios Aurora II |
|
Capesize |
|
2009 |
|
169,031 |
Navios Pollux |
|
Capesize |
|
2009 |
|
180,727 |
Navios Fulvia |
|
Capesize |
|
2010 |
|
179,263 |
Navios Melodia |
|
Capesize |
|
2010 |
|
179,132 |
Navios Luz |
|
Capesize |
|
2010 |
|
179,144 |
Navios Buena Ventura |
|
Capesize |
|
2010 |
|
179,259 |
Navios Joy |
|
Capesize |
|
2013 |
|
181,389 |
Navios Beaufiks |
|
Capesize |
|
2004 |
|
180,310 |
Navios Ace |
|
Capesize |
|
2011 |
|
179,016 |
Navios Sol |
|
Capesize |
|
2009 |
|
180,274 |
Navios Symphony |
|
Capesize |
|
2010 |
|
178,132 |
Navios Aster |
|
Capesize |
|
2010 |
|
179,314 |
Navios Mars |
|
Capesize |
|
2016 |
|
181,259 |
Chartered-in vessel |
|
Type |
|
Built |
|
Capacity(DWT) |
|
Purchase Option |
Navios
Libra |
|
Panamax |
|
2019 |
|
82,011 |
|
Yes |
Owned Containerships |
|
Type |
|
Built |
|
Capacity(TEU) |
Hyundai Hongkong |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Singapore |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Tokyo |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Shanghai |
|
Containership |
|
2006 |
|
6,800 |
Hyundai Busan |
|
Containership |
|
2006 |
|
6,800 |
Castor N |
|
Containership |
|
2007 |
|
3,091 |
Esperanza N |
|
Containership |
|
2008 |
|
2,007 |
Harmony N |
|
Containership |
|
2006 |
|
2,824 |
Protostar N |
|
Containership |
|
2007 |
|
2,741 |
Solar N |
|
Containership |
|
2006 |
|
3,398 |
Chartered-in vessels to be delivered |
|
Type |
|
Built |
|
Capacity(DWT) |
|
Purchase Option |
TBN1 |
|
Panamax |
|
2021 |
|
81,000 |
|
Yes |
TBN2 |
|
Panamax |
|
2021 |
|
81,000 |
|
Yes |
|
|
|
|
|
|
|
|
|
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net income/ (loss)
attributable to Navios Partners’ unitholders before interest and
finance costs, before depreciation and amortization (including
intangible accelerated amortization) and income taxes. Adjusted
EBITDA represents EBITDA before impairment losses and revision of
the estimated guarantee claim receivable. Navios Partners uses
Adjusted EBITDA as a liquidity measure and reconcile EBITDA and
Adjusted EBITDA to net cash provided by operating activities, the
most comparable U.S. GAAP liquidity measure. EBITDA in this
document is calculated as follows: net cash provided by operating
activities adding back, when applicable and as the case may be, the
effect of: (i) net decrease/ (increase) in operating assets;
(ii) net (decrease)/ increase in operating liabilities;
(iii) net interest cost; (iv) amortization and write-off
of deferred financing cost; (v) equity in net earnings of
affiliated companies; (vi) impairment charges;
(vii) non-cash accrued interest income and amortization of
deferred revenue; (viii) equity compensation expense; (ix)
non-cash accrued interest income from receivable from
affiliates; and (x) amortization of operating lease
right-of-use asset. Navios Partners believes that EBITDA and
Adjusted EBITDA are each the basis upon which liquidity can be
assessed and presents useful information to investors regarding
Navios Partners’ ability to service and/or incur indebtedness, pay
capital expenditures, meet working capital requirements and make
cash distributions. Navios Partners also believes that EBITDA and
Adjusted EBITDA are used: (i) by potential lenders to evaluate
potential transactions; (ii) to evaluate and price potential
acquisition candidates; and (iii) by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry.
Adjusted EBITDA represents EBITDA excluding
certain items, as described under “Earnings Highlights.”
EBITDA and Adjusted EBITDA have limitations as
an analytical tool, and should not be considered in isolation or as
a substitute for the analysis of Navios Partners’ results as
reported under U.S. GAAP. Some of these limitations are:
(i) EBITDA and Adjusted EBITDA do not reflect changes in, or
cash requirements for, working capital needs; and
(ii) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future. EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such capital expenditures. Because of
these limitations, EBITDA and Adjusted EBITDA should not be
considered as a principal indicator of Navios Partners’
performance. Furthermore, our calculation of EBITDA and Adjusted
EBITDA may not be comparable to that reported by other companies
due to differences in methods of calculation.
2. Operating Surplus
Operating Surplus represents net income adjusted
for depreciation and amortization expense, non-cash interest
expense, 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: º
provide funds for distributions to the unitholders and to the
general partner for any one or more of the next four
quarters; º comply with applicable law, any of
Navios Partners’ debt instruments, or other agreements; or
º provide for the proper conduct of Navios Partners’
business (including reserve for maintenance and replacement capital
expenditures);
- 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
31,2019($
‘000)(unaudited) |
|
Three MonthPeriod EndedDecember
31,2018($
‘000)(unaudited) |
|
Year EndedDecember
31,2019($
‘000)(unaudited) |
|
Year EndedDecember
31,2018($
‘000)(unaudited) |
Net cash provided by operating activities |
|
$ |
23,300 |
|
|
$ |
17,671 |
|
|
$ |
70,395 |
|
|
$ |
68,319 |
|
Net decrease/ (increase) in
operating assets |
|
|
3,587 |
|
|
|
945 |
|
|
|
11,069 |
|
|
|
19,926 |
|
Net (decrease)/ increase in
operating liabilities |
|
|
(2,289 |
) |
|
|
1,132 |
|
|
|
(2,643 |
) |
|
|
2,542 |
|
Net interest cost |
|
|
9,282 |
|
|
|
10,078 |
|
|
|
39,082 |
|
|
|
38,358 |
|
Amortization and write-off of
deferred financing cost |
|
|
(3,658 |
) |
|
|
(1,933 |
) |
|
|
(10,916 |
) |
|
|
(7,258 |
) |
Amortization of operating
lease right-of-use asset |
|
|
(220 |
) |
|
|
— |
|
|
|
(378 |
) |
|
|
— |
|
Non cash accrued interest
income and amortization of deferred revenue |
|
|
3,167 |
|
|
|
3,158 |
|
|
|
12,638 |
|
|
|
12,522 |
|
Equity compensation
expense |
|
|
(481 |
) |
|
|
(588 |
) |
|
|
(2,018 |
) |
|
|
(2,450 |
) |
Vessels impairment loss |
|
|
(29,335 |
) |
|
|
(1,226 |
) |
|
|
(36,680 |
) |
|
|
(44,344 |
) |
Other than Temporary
Impairment loss in NMCI Investment |
|
|
(42,603 |
) |
|
|
— |
|
|
|
(42,603 |
) |
|
|
— |
|
Non cash accrued interest
income from receivable from affiliates |
|
|
65 |
|
|
|
70 |
|
|
|
279 |
|
|
|
272 |
|
Loss on vessel disposal |
|
|
— |
|
|
|
(53 |
) |
|
|
— |
|
|
|
(53 |
) |
Revision of estimated
guarantee claim receivable |
|
|
— |
|
|
|
(2,000 |
) |
|
|
(3,638 |
) |
|
|
(2,000 |
) |
Equity in earnings of
affiliates, net of dividends received |
|
|
983 |
|
|
|
(645 |
) |
|
|
2,532 |
|
|
|
3,957 |
|
EBITDA(1) |
|
$ |
(38,202 |
) |
|
$ |
26,609 |
|
|
$ |
37,119 |
|
|
$ |
89,791 |
|
Equity compensation
expense |
|
|
— |
|
|
|
588 |
|
|
|
— |
|
|
|
2,450 |
|
Other than temporary
impairment on dividend in kind |
|
|
— |
|
|
|
560 |
|
|
|
— |
|
|
|
560 |
|
Revision of estimated
guarantee claim receivable |
|
|
— |
|
|
|
2,000 |
|
|
|
3,638 |
|
|
|
2,000 |
|
Vessels impairment loss |
|
|
29,335 |
|
|
|
1,226 |
|
|
|
36,680 |
|
|
|
44,344 |
|
Other than Temporary
Impairment loss in NMCI Investment |
|
|
42,603 |
|
|
|
— |
|
|
|
42,603 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
33,736 |
|
|
$ |
30,983 |
|
|
$ |
120,040 |
|
|
$ |
139,145 |
|
Cash interest income |
|
|
127 |
|
|
|
193 |
|
|
|
626 |
|
|
|
739 |
|
Cash interest paid |
|
|
(5,588 |
) |
|
|
(9,388 |
) |
|
|
(32,869 |
) |
|
|
(35,244 |
) |
Maintenance and replacement
capital expenditures |
|
|
(7,152 |
) |
|
|
(6,969 |
) |
|
|
(29,039 |
) |
|
|
(26,787 |
) |
Operating
Surplus |
|
$ |
21,123 |
|
|
$ |
14,819 |
|
|
$ |
58,758 |
|
|
$ |
77,853 |
|
Cash distribution paid
relating to the first three quarters |
|
|
— |
|
|
|
— |
|
|
|
(10,092 |
) |
|
|
(10,261 |
) |
Cash reserves |
|
|
(17,758 |
) |
|
|
(11,369 |
) |
|
|
(45,301 |
) |
|
|
(64,142 |
) |
Available cash for
distribution |
|
$ |
3,365 |
|
|
$ |
3,450 |
|
|
$ |
3,365 |
|
|
$ |
3,450 |
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period Ended December 31,2019
(Unaudited) |
|
Three MonthPeriod EndedDecember
31,2018(Unaudited) |
|
Year EndedDecember 31,2019(Unaudited) |
|
Year EndedDecember 31,2018(Unaudited) |
Net cash provided by operating
activities |
$ |
23,300 |
|
|
$ |
17,671 |
|
|
$ |
70,395 |
|
|
$ |
68,319 |
|
Net cash (used in)/ provided
by investing activities |
$ |
(10,150 |
) |
|
$ |
5,437 |
|
|
$ |
(17,034 |
) |
|
$ |
(67,888 |
) |
Net cash (used in)/ provided
by financing activities |
$ |
(8,743 |
) |
|
$ |
(9,101 |
) |
|
$ |
(84,414 |
) |
|
$ |
31,091 |
|
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