-- Revenue of $21.6 million and $75.1 million for the three month period
and the year ended December 31, 2008
-- Operating Surplus of $9.4 million and $32.1 million for the three
month period and the year ended December 31, 2008
-- Distribution of $0.40 per unit for the three month period ended
December 31, 2008
-- $30.5 million accelerated lump sum charter payment receivable in Q1
2009
Navios Maritime Partners L.P. ("Navios Partners" or "Company") (
(unaudited)
Three Month (unaudited)
Period ended Year ended
December 31, December 31,
2008 2008
($ '000) ($ '000)
------------- -------------
Time charter and voyage revenue $ 21,551 $ 75,082
Time charter and voyage expenses (2,797) (11,598)
Direct vessel expenses (145) (578)
Management fees (2,668) (9,275)
General and administrative expenses (1,578) (3,798)
Depreciation and amortization (3,277) (11,865)
Interest expense and finance cost, net (2,117) (9,216)
Interest income 135 301
Other income -- 23
(unaudited)
Three Month (unaudited)
Period ended Year ended
December 31, December 31,
2008 2008
($ '000) ($ '000)
------------- -------------
Other expense (295) (318)
------------- -------------
Net income $ 8,809 28,758
============= =============
EBITDA $ 14,213 $ 50,116
Operating surplus $ 9,420 $ 32,099
Three month period ended December 31, 2008
For three month period ended December 31, 2008, Navios Partners' time
charter revenue amounted to $21.6 million whereas time charter expenses for
the same period were $2.8 million. Other expenses, including management
fees and general and administrative expenses, amounted to $4.2 million.
EBITDA for the three month period ended December 31, 2008 was $14.2 million
(please see Reconciliation of Non-GAAP Financial Measures on Exhibit 3).
The increase in the reserve for estimated maintenance and replacement
capital expenditures for the three month period ended December 31, 2008 was
$2.7 million. Maintenance and replacement capital expenditures represent
expenditures required to maintain, over the long term the operating
capacity of Navios Partners' capital assets.
Navios Partners generated an operating surplus for the period of $9.4
million. Operating surplus is a non-GAAP financial measure used by certain
investors to measure the financial performance of Navios Partners and other
master limited partnerships (please see Reconciliation of Non-GAAP
Financial Measures on Exhibit 3).
Depreciation and amortization expense for the period (including
amortization of drydocking and special survey costs presented under direct
vessel expenses) was $3.4 million and interest expense and finance cost
related to $235.0 million of borrowings under Navios Partners' facility
agreement was $2.1 million.
Net income for three month period ended December 31, 2008 was $8.8 million.
Year ended December 31, 2008
For the year ended December 31, 2008, Navios Partners' time charter revenue
amounted to $75.1 million whereas time charter expenses for the year were
$11.6 million. Other expenses including management fees and general and
administrative expenses amounted to $13.1 million.
EBITDA for the year ended December 31, 2008 was $50.1 million (please see
Reconciliation of Non-GAAP Financial Measures on Exhibit 3).
The increase in the reserve for estimated maintenance and replacement
capital expenditures for the year ended December 31, 2008 was $9.9 million.
Maintenance and replacement capital expenditures represent expenditures
required to maintain, over the long term the operating capacity of Navios
Partners' capital assets.
Navios Partners generated an operating surplus for the period of $32.1
million. Operating surplus is a non-GAAP financial measure used by certain
investors to measure the financial performance of Navios Partners and other
master limited partnerships (please see Reconciliation of Non-GAAP
Financial Measures on Exhibit 3).
Depreciation and amortization expense for the period (including
amortization of drydocking and special survey costs presented under direct
vessel expenses) was $12.4 million and interest expense and finance cost
related to $235.0 million of borrowings under Navios Partners' facility
agreement was $9.2 million.
Net income for the year ended December 31, 2008 was $28.8 million.
Fleet Employment Profile
The following table reflects certain key indicators indicative of the
performance of Navios Partners and its core fleet performance for the
quarter and the year ended December 31, 2008.
Three Month
Period ended Year ended
December 31, December 31,
2008 2008
------------- -------------
(Unaudited) (Unaudited)
Available Days (1) 828 3,019
Operating Days (2) 817 2,991
Fleet Utilization (3) 98.7% 99.1%
Time Charter Equivalent (per day) $ 26,027 $ 24,873
(1) Available days for fleet are total calendar days the vessels were in
our possession for the relevant period after subtracting off-hire days
associated with major repairs, drydockings or special surveys. The
shipping industry uses available days to measure the number of days in
a relevant period during which vessels should be 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 a company's efficiency in finding
suitable employment for its vessels.
Conference Call Details:
As previously announced, Navios Partners' management will host a conference
call to discuss the results today, Thursday, January 29, 2009, at 8:30 am
EST. Participants should dial into the call 10 minutes before the scheduled
time using the following numbers:
US Toll Free Dial In: +1866 819 7111 UK Toll Free Dial In: +0800 953 0329 International Dial In: +44 (0) 1452 542 301 Please quote "NAVIOS MLP."A telephonic replay of the conference call will be available until February 5, 2009 by dialing the following numbers:
US Toll Free Dial In: +1866 247 4222 UK Toll Free Dial In: +0800 953 1533 International Dial In: +44 1452 550 000 Access Code: 33433537#Slides and Audio Webcast There will also be a live, and then archived 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 Maritime Partners L.P. website at www.navios-mlp.com under the "Investors" section at 7:45 am EST. ABOUT NAVIOS MARITIME PARTNERS L.P. Navios Maritime Partners L.P. (
Exhibit 2 displays the "core fleet" employment profile of Navios Partners.
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of US Dollars)
December 31, December 31,
2007 2008
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,095 $ 28,374
Restricted cash 797 --
Accounts receivable, net 381 313
Prepaid expenses and other current assets 39 371
------------- -------------
Total current assets 11,312 29,058
------------- -------------
Vessels, net 135,976 291,340
Deferred financing costs, net 1,811 1,915
Deferred dry dock and special survey costs,
net 1,171 594
Favorable lease terms 54,784 --
------------- -------------
Total non-current assets 193,742 293,849
------------- -------------
Total assets $ 205,054 $ 322,907
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 570 $ 594
Accrued expenses 1,431 1,662
Deferred voyage revenue 153 2,606
Amounts due to related parties 4,458 1,539
Current portion of long term debt - 40,000
------------- -------------
Total current liabilities 6,612 46,401
------------- -------------
Long term debt 165,000 195,000
Unfavorable lease terms 6,656 4,659
------------- -------------
Total non-current liabilities 171,656 199,659
------------- -------------
Total liabilities 178,268 246,060
------------- -------------
Commitments and contingencies -- --
------------- -------------
Partners' capital:
Common Unitholders (10,500,000 and
13,631,415 units issued and outstanding
at December 31, 2007 and December 31,
2008, respectively) 194,265 243,639
Subordinated Unitholders (7,621,843 units
issued and outstanding at December 31,
2007 and December 31, 2008, respectively) (159,759) (160,092)
General Partner (369,834 and 433,740 units
issued and outstanding at December 31,
2007 and December 31, 2008, respectively) (7,720) (6,700)
------------- -------------
Total Partners' capital 26,786 76,847
------------- -------------
Total Liabilities and partners' capital $ 205,054 $ 322,907
============= =============
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of US Dollars except unit and per unit amounts)
Three months ended Year Ended
------------------------ ------------------------
(unaudited) (unaudited) (unaudited)
December 31, December 31, December 31, December 31,
2007 2008 2007 2008
----------- ----------- ----------- -----------
Time charter and voyage
revenue $ 14,078 $ 21,551 $ 50,352 $ 75,082
Time charter and voyage
expenses (2,809) (2,797) (8,352) (11,598)
Direct vessel expenses (968) (145) (5,608) (578)
Management fees (920) (2,668) (920) (9,275)
General and
administrative
expenses (530) (1,578) (1,419) (3,798)
Depreciation and
amortization (2,765) (3,277) (9,375) (11,865)
Interest expense and
finance cost, net (1,823) (2,117) (5,522) (9,216)
Interest income -- 135 -- 301
Other income 30 -- 93 23
Other expense (259) (295) (226) (318)
----------- ----------- ----------- -----------
Income before income
taxes $ 4,034 $ 8,809 19,023 28,758
Deferred income tax -- -- 485 --
----------- ----------- ----------- -----------
Net income/ (loss) $ 4,034 $ 8,809 $ 19,508 $ 28,758
=========== =========== =========== ===========
Earnings per unit:
Three months ended Year Ended
------------------------- -------------------------
(unaudited) (unaudited) (unaudited)
December 31, December 31, December 31, December 31,
2007 2008 2007 2008
------------ ------------ ------------ ------------
Net Income 4,034 8,809 19,508 28,758
Consisting of net
income attributable
to:
Periods from November
16, 2007 to December
31, 2008 1,613 8,809 1,613 28,758
Periods from January 1,
2007 to November 15,
2007 - - 17,895 -
Periods from October 1,
2007 to November 15,
2007 2,421 - -
Earnings per unit
(periods from November
16, 2007 to December
31, 2008)
Common unit (basic and
diluted) $ 0.15 $ 0.41 $ 0.15 $ 1.56
Subordinated unit
(basic and diluted) $ - $ 0.41 $ - $ 1.22
General partner unit
(basic and diluted) $ 0.09 $ 0.43 $ 0.09 $ 1.53
Earnings per unit
(periods from January
1, 2006 to November
15, 2007)
Common unit (basic and
diluted) - - $ - -
Subordinated unit
(basic and diluted) - - $ 2.30 -
General partner unit
(basic and diluted) - - $ 0.97 -
Three months ended Year Ended
------------------------- -------------------------
(unaudited) (unaudited) (unaudited)
December 31, December 31, December 31, December 31,
2007 2008 2007 2008
------------ ------------ ------------ ------------
Earnings per unit
(periods from October
1, 2007 through
November 15, 2007)
Common unit (basic and
diluted) $ - - - -
Subordinated unit
(basic and diluted) $ 0.31 - - -
General partner unit
(basic and diluted) $ 0.13 - - -
Earnings per unit
(periods from October
1, 2007 through
December 31, 2007)
Common unit (basic and
diluted) $ 0.15 - - -
Subordinated unit
(basic and diluted) $ 0.31 - - -
General partner unit
(basic and diluted) $ 0.22 - - -
Earnings per unit
(periods from January
1, 2007 to December
31, 2008)
Common unit (basic and
diluted) - - $ 0.15 $ 1.56
Subordinated unit
(basic and diluted) - - $ 2.30 $ 1.22
General partner unit
(basic and diluted) - - $ 1.06 $ 1.53
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US Dollars)
Year Ended Year Ended
December 31, December 31,
2007 2008
------------- -------------
(unaudited)
OPERATING ACTIVITIES
Net income $ 19,508 $ 28,758
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 9,375 11,865
Amortization and write-off of deferred
financing cost 160 221
Amortization of deferred dry dock costs 608 578
Deferred taxation (485) --
Provision for losses on accounts receivable -- --
Changes in operating assets and liabilities:
(Increase) decrease in restricted cash (797) 797
(Increase) decrease in accounts receivable (249) 68
Decrease (increase) in prepaid expenses and
other current assets 986 (332)
Decrease (increase) in accounts payable (155) 24
Increase in accrued expenses 870 231
(Decrease) increase in deferred voyage
revenue (725) 2,453
Decrease in amounts due to related parties (17,731) (2,919)
Payments for dry dock and special survey
costs (849) --
------------- -------------
Net cash provided by operating activities 10,516 41,744
------------- -------------
INVESTING ACTIVITIES:
Acquisition of vessels -- (69,505)
------------- -------------
Net cash used in investing activities -- (69,505)
------------- -------------
FINANCING ACTIVITIES:
Cash distribution paid -- (24,552)
Proceeds from long term loan 165,000 70,000
Repayment of long term debt and payment of
principal (2,291) --
Proceeds from issuance of common units, net
of offering costs 192,684 --
Proceeds from issuance of general partners
units -- 918
Cash contribution to Navios Holdings (353,300) --
Debt issuance costs (2,514) (326)
------------- -------------
Net cash provided by (used in) financing
activities (421) 46,040
------------- -------------
Increase (decrease) in cash and cash
equivalents 10,095 18,279
------------- -------------
Cash and cash equivalents, beginning of
year/period -- 10,095
------------- -------------
Cash and cash equivalents, end of year/period $ 10,095 $ 28,374
============= =============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $ 3,996 $ 9,022
Non-cash investing and financing activities:
Contributions by Navios Holdings in the form
of fair value adjustments related to
charter-in contract of Fantastiks $ 50,579 --
Contributions from owner (net liability of
business retained by owner) $ 46,413 --
Issuance of common units to Navios Holdings
related to the acquisition of Navios Aurora
I in July 2008 -- $ 44,937
Unamortized portion of favorable lease terms
and purchase option capitalized to fixed
assets related to the acquisition of Navios
Fantastiks -- $ 53,022
EXHIBIT 2
Original
Charter Original
Expiration Charter Out
Date/ New Rate/ New
Charter Charter Out
Capacity Expiration Rate per
Owned Vessels Type Built (DWT) Date day
-------------- --------- --------- --------- -------------- -----------
Navios Gemini S Panamax 1994 68,636 February 2009 $ 19,523
February 2014 24,225
Navios Libra II Panamax 1995 70,136 December 2010 23,513
Navios Felicity Panamax 1997 73,867 April 2013 26,169
Navios Galaxy I Panamax 2001 74,195 February 2018 21,937
Navios Alegria Panamax 2004 76,466 December 2010 23,750
Navios Fantastiks Capesize 2005 180,265 March 2011 32,279
March 2014 36,290
Navios Aurora I Panamax 2005 75,397 February 2009 33,863(1)
April 2009 3,000(1)
April 2010 11,000(1)
September 2013 17,000(1)
Owned Vessels to
be delivered (2)
Expected
delivery
June
Navios TBN I Capesize 2009 180,000 June 2014 47,400
Long term
Chartered-in
Vessels
Navios Prosperity Panamax 2007 82,535 July 2012 24,000
Navios Aldebaran Panamax 2008 76,500 March 2013 28,391
(1) Navios Partners will receive a lump sum payment of approximately
$30.5 million in the first quarter of 2009.
(2) Navios Partners has the option to acquire the capital stock of
the subsidiary that will own TBN II.
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA
EBITDA: EBITDA represents net income before interest, taxes, depreciation
and amortization. Navios Partners uses EBITDA because Navios Partners
believes that EBITDA is a basis upon which liquidity can be assessed and
because EBITDA presents useful information to investors regarding Navios
Partners' ability to service and/or incur indebtedness. Navios Partners
also uses EBITDA: (i) in its credit agreement to measure compliance with
covenants such as interest coverage and debt incurrence; (ii) by
prospective and current lessors as well as potential lenders to evaluate
potential transactions; and (iii) to evaluate and price potential
acquisition candidates.
EBITDA has limitations as an analytical tool, and should not be considered
in isolation or as a substitute for analysis of Navios Partners' results as
reported under US GAAP. Some of these limitations are: (i) EBITDA does 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, and EBITDA does not reflect any cash requirements for such capital
expenditures. Because of these limitations, EBITDA should not be considered
as a principal indicator of Navios Partners' performance.
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 and expansion 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. Expansion
capital expenditures are those capital expenditures that increase 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 as an alternative to net income or any other
indicator of Navios Partners' performance required by accounting principles
generally accepted in the United States.
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 our 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 as an alternative to net income or any other
indicator of Navios Partners' performance required by accounting principles
generally accepted in the United States.
4. Reconciliation of Non-GAAP Financial Measures
Three Month
Period Ended Year Ended
December 31, December 31,
2008 2008
------------- -------------
Net Cash from Operating Activities $ 11,473 $ 41,744
Net increase (decrease) in operating assets 315 (533)
Net decrease in operating liabilities 503 211
Net interest cost 1,982 8,915
Deferred finance charges (60) (221)
------------- -------------
EBITDA 14,213 50,116
Cash interest income 115 281
Cash interest paid (2,166) (9,022)
Expansion capital expenditures - (69,155)
Borrowings to fund expansion capital
expenditures - 69,773
Maintenance and replacement capital
expenditures (2,742) (9,894)
------------- -------------
Operating surplus 9,420 32,099
Cash distribution paid relating to the
first nine months of 2008 - (21,315)
Recommended reserves accumulated as of
January 1, 2008 18 18
Reserves accumulated during the first nine
months of 2008 to be distributed in the
fourth quarter of 2008 1,364 -
Recommended reserves held as of December 31,
2008 (2,127) (2,127)
------------- -------------
Available cash for distribution $ 8,675 $ 8,675
============= =============
Contact Information: Contacts Public & Investor Relations Contact: Navios Maritime Partners L.P. Nicolas Bornozis Capital Link, Inc. Tel. (212) 661-7566 E-mail: naviospartners@capitallink.com