47.2% Increase in Quarterly Operating Surplus to $10.6 Million
59.8% Increase in Quarterly EBITDA to $14.7 Million
48.3% Increase in Quarterly Revenues to $21.2 million
Distribution of $0.40 per Unit for the Three Month Period Ended March 31, 2009
(unaudited) (unaudited)
Three Month Three Month
Period Ended Period Ended
March 31, March 31,
2008 2009
($ ‘000) ($ ‘000)
----------- -----------
Time charter and voyage revenue $ 14,320 $ 21,157
Time charter and voyage expenses (2,821) (3,008)
Direct vessel expenses (144) (124)
Management fees (1,820) (2,610)
General and administrative expenses (496) (902)
Depreciation and amortization (2,764) (3,277)
Interest expense and finance cost, net (2,473) (2,425)
Interest income 48 57
Other income - 91
Other expense (3) -
----------- -----------
Net income $ 3,847 $ 8,959
=========== ===========
EBITDA $ 9,180 $ 14,728
Operating Surplus $ 7,156 $ 10,550
=========== ===========
Three month period ended March 31, 2009
For the three month period ended March 31, 2009, Navios Partners time
charter and voyage revenue increased by $6.9 million or 48.2% to $21.2
million as compared to $14.3 million for the same period in 2008. The
increase was mainly attributable to the delivery of Navios Aldebaran on
March 17, 2008 and the acquisition of Navios Hope (ex Navios Aurora I) on
July 1, 2008, both of which were fully operating during the three month
period ended March 31, 2009. Time charter expenses for the three month
period ended March 31, 2009 were $3.0 million and other expenses, including
management fees and general and administrative expenses amounted to $3.4
million.
EBITDA for the three month period ended March 31, 2009 was $14.7 million
(please see Reconciliation of Non-GAAP Financial Measures on Exhibit 3).
EBITDA increased by $5.5 million to $14.7 million for the three month
period ended March 31, 2009 as compared to $9.2 million for the same period
of 2008. This $5.5 million increase in EBITDA was primarily due to: (a) a
$6.8 million increase in revenues as a result of the increased number of
vessels in Navios Partners' fleet and some accelerated payments from the
Navios Hope; and (b) a $0.1 million increase in other income/expense, net.
The above overall favorable variance of $6.9 million was mitigated by: (a)
a $0.2 million increase in time charter and voyage expenses; (b) a $0.8
million increase in management fees due to the increase in the number of
vessels; and (c) a $0.4 million increase in general and administrative
expenses due to the increase in the number of owned and chartered-in
vessels during the three month period ended March 31, 2009, compared to the
same period in 2008.
The increase in the reserve for estimated maintenance and replacement
capital expenditures for the three month period ended March 31, 2009 and
2008 was $2.0 million and $2.1 million, respectively. There were no capital
expenditures for the three month periods ended March 31, 2009 and 2008.
Navios Partners generated an operating surplus for the current period of
$10.6 million in comparison to $7.2 million for the three month period
ended March 31, 2008. 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 $195.0 million of borrowings under Navios Partners' facility
agreement was $2.4 million.
Net income for three months ended March 31, 2009 amounted to $9.0 million
compared to $3.8 million for the three months ended March 31, 2008. The
increase in net income by $5.2 million was due to (a) a $5.5 million
increase in EBITDA; (b) a $0.1 million increase in interest expense; and
(c) a $0.1 million net increase from amortization expense and interest
income. This increase was mitigated by a $0.5 million increase in
depreciation and amortization expense.
Fleet Employment Profile
The following table reflects certain key indicators indicative of the
performance of Navios Partners and its core fleet performance for the three
and nine month periods ended March 31, 2009.
Three Month Three Month
Period Period
ended March ended March
31, 2008 31, 2009
----------- -----------
Available Days (1) 635.0 810.0
Operating Days (2) 635.0 809.6
Fleet Utilization (3) 100.0% 99.95%
Time Charter Equivalent (per day) $ 22,565 $ 26,120
(1) Available days for the fleet represent total calendar days the vessels
were in our possession for the relevant period after subtracting off-hire
days associated with major repairs, drydockings or special surveys. The
shipping industry uses available days to measure the number of days in a
relevant period during which a vessel is capable of generating revenues.
(2) Operating days is the number of available days in the relevant period
less the aggregate number of days that the vessels are off-hire due to any
reason, including unforeseen circumstances. The shipping industry uses
operating days to measure the aggregate number of days in a relevant period
during which vessels actually generate revenues.
(3) Fleet utilization is the percentage of time that our vessels were
available for revenue generating available days, and is determined by
dividing the number of operating days during a relevant period by the
number of available days during that period. The shipping industry uses
fleet utilization to measure efficiency in finding employment for vessels.
Conference Call Details:
As announced on April 24, 2009, Navios Partners' management will host a
conference call to discuss the results this morning, Wednesday, April 29,
2009, at 8:30 am EDT. 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 May 6, 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. ABOUT NAVIOS MARITIME PARTNERS L.P. Navios Maritime Partners L.P. (
EXHIBIT 1
---------
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
December 31, March 31,
2008 2009
----------- -----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 28,374 $ 17,547
Restricted cash - 5,820
Accounts receivable, net 313 778
Prepaid expenses and other current assets 371 111
----------- -----------
Total current assets 29,058 24,256
----------- -----------
Vessels, net 291,340 287,564
Deferred financing costs, net 1,915 2,053
Deferred dry dock and special survey costs, net 594 470
----------- -----------
Total non-current assets 293,849 290,087
----------- -----------
Total assets $ 322,907 $ 314,343
=========== ===========
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable $ 594 $ 877
Accrued expenses 1,662 1,273
Deferred voyage revenue 2,606 8,498
Amounts due to related parties 1,539 4,579
Current portion of long term debt 40,000 -
----------- -----------
Total current liabilities 46,401 15,227
----------- -----------
Long term debt 195,000 195,000
Unfavorable lease terms 4,659 4,160
Deferred voyage revenue - 22,825
----------- -----------
Total non-current liabilities 199,659 221,985
----------- -----------
Total liabilities 246,060 237,212
----------- -----------
Commitments and contingencies - -
Partners’ Capital:
Common Unitholders (13,631,415 units issued and
outstanding at December 31, 2008 and March 31,
2009) 243,639 243,798
Subordinated Unitholders (7,621,843 units
issued and outstanding at December 31, 2008
and March 31, 2009) (160,092) (160,003)
General Partner (433,740 units issued and
outstanding at December 31, 2008 and March 31,
2009) (6,700) (6,664)
----------- -----------
Total partners’ capital 76,847 77,131
----------- -----------
Total liabilities and partners’ capital $ 322,907 $ 314,343
=========== ===========
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. Dollars except unit and per unit amounts)
Three Month Three Month
Period Period
Ended Ended
March 31, March 31,
2008 2009
----------- -----------
(unaudited) (unaudited)
Time charter and voyage revenue $ 14,320 $ 21,157
Time charter and voyage expenses (2,821) (3,008)
Direct vessel expenses (144) (124)
Management fees (1,820) (2,610)
General and administrative expenses (496) (902)
Depreciation and amortization (2,764) (3,277)
Interest expense and finance cost, net (2,473) (2,425)
Interest income 48 57
Other income - 91
Other expense (3) -
----------- -----------
Net income $ 3,847 $ 8,959
=========== ===========
Earnings per unit:
Three Month Three Month
Period Ended Period Ended
March 31, March 31,
2008 2009
----------- -----------
(unaudited) (unaudited)
Net income $ 3,847 $ 8,959
Earnings per unit (see note 13):
Common unit (basic and diluted) $ 0.35 $ 0.41
Subordinated unit (basic and diluted) $ 0.01 $ 0.41
General partner unit (basic and diluted) $ 0.21 $ 0.48
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Three Month Three Month
period Ended period Ended
March 31, March 31,
2008 2009
----------- -----------
(unaudited) (unaudited)
OPERATING ACTIVITIES
Net income $ 3,847 $ 8,959
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,764 3,277
Amortization and write-off of deferred financing
cost 49 62
Amortization of deferred dry dock costs 144 124
Changes in operating assets and liabilities:
Increase in restricted cash (2,339) (820)
Increase in accounts receivable (147) (465)
Increase/ (decrease) in prepaid expenses and
other current assets (7) 260
(Decrease)/ increase in accounts payable (323) 283
Increase/ (decrease) in accrued expenses 2,385 (389)
Increase in deferred voyage revenue 545 28,717
(Decrease)/increase in amounts due to related
parties (3,414) 3,040
----------- -----------
Net cash provided by operating activities 3,504 43,048
----------- -----------
FINANCING ACTIVITIES:
Cash distribution paid (3,236) (8,675)
Increase in restricted cash - (5,000)
Repayment of long term debt and payment of
principal - (40,000)
Debt issuance costs - (200)
----------- -----------
Net cash used in financing activities (3,236) (53,875)
----------- -----------
Increase/ (decrease) in cash and cash equivalents 268 (10,827)
----------- -----------
Cash and cash equivalents, beginning of period 10,095 28,374
----------- -----------
Cash and cash equivalents, end of period $ 10,363 $ 17,547
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest $ - $ 2,278
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
--------------- -------- ---------- ------------ ------------ -----------
February
Navios Gemini S Panamax 1994 68,636 2009 $ 19,523
February
2014 $ 24,225
December
Navios Libra II Panamax 1995 70,136 2010 $ 23,513
Navios Felicity Panamax 1997 73,867 April 2013 $ 26,169
February
Navios Galaxy I Panamax 2001 74,195 2018 $ 21,937
December
Navios Alegria Panamax 2004 76,466 2010 $ 23,750
Navios
Fantastiks Capesize 2005 180,265 March 2011 $ 32,279
March 2014 $ 36,290
February 14,
Navios Hope Panamax 2005 75,397 2009 $ 33,862
April 1,
2009 -
May 18,
2009 $ 8,080
May 18,
2010 $ 10,643
August 2013 $ 16,841
Owned Vessels to be delivered
Expected
delivery
Navios TBN I Capesize June 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
EXHIBIT 3 ---------Disclosure of Non-GAAP Financial Measures 1. EBITDA EBITDA EBITDA represents net income before interest, depreciation and amortization. Navios Partners uses EBITDA because Navios Partners believes that EBITDA is a basis upon which liquidity can be assessed and because Navios Partners believes that EBITDA presents useful information to investors regarding Navios Partners' ability to service and/or incur indebtedness. Navios 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' 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. EBITDA increased by $5.5 million to $14.7 million for the three month period ended March 31, 2009 as compared to $9.2 million for the same period of 2008. This $5.5 million increase in EBITDA was primarily due to: (a) a $6.8 million as a result of the increased number of vessels in Navios Partners' fleet and due to some accelerated payments from the Navios Hope; and (b) a $0.1 million increase in other income/expense, net. The above overall favorable variance of $6.9 million was mitigated by: (a) a $0.2 million increase in time charter and voyage expenses; (b) a $0.8 million increase in management fees due to the increase in the number of vessels; and (c) a $0.4 million increase in general and administrative expenses due to the increase in the number of owned and chartered-in vessels during the three month period ended March 31, 2009, compared to the same period in 2008. 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 Three Month
Period Ended Period Ended
March 31, March 31,
2008 2009
----------- -----------
Net Cash from Operating Activities $ 3,504 $ 43,048
Net increase/(decrease) in operating assets (2,493) 1,025
Net (increase)/decrease in operating liabilities 807 (31,651)
Net interest cost 2,425 2,425
Interest income - (57)
Deferred finance charges (49) (62)
----------- -----------
EBITDA 9,180 14,728
Cash interest income 48 57
Cash interest paid - (2,278)
Maintenance and replacement capital expenditures (2,072) (1,957)
----------- -----------
Operating surplus 7,156 10,550
Cash distribution paid relating to the
first quarter - (8,675)
Recommended reserves accumulated as of beginning
of quarter - 2,127
Recommended reserves held as of quarter end (684) 4,001
----------- -----------
Available cash for distribution $ 6,472 $ 8,003
=========== ===========
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