• $46.8 million revenue
  • $10.5 million net cash from operating activities
  • $22.7 million adjusted EBITDA
  • $73.5 million Term Loan B prepayment post Q1 2019
  • Returning capital to Unitholders 
    -- $3.4 million cash distribution for Q1 ($0.02 per unit) 
    -- 4.7 million units repurchased

MONACO, May 03, 2019 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2019.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the first quarter of 2019 during which Navios Partners reported $46.8 million of Revenue and $22.7 million of Adjusted EBITDA. For the quarter, we declared a quarterly distribution of $0.02 cents per unit, representing a current yield of approximately 8%.”

Angeliki Frangou continued, “Our results were particularly strong given the weak market backdrop. Charter rates in the drybulk sector were adversely effected by January’s tragic dam collapse in Brazil, which removed a significant amount of iron ore from the longest trading route to China.

Despite this challenging environment, NMM earned a TCE rate of $13,209 per day for its fleet in the first quarter. Also, we have seen material rate improvement since Q1. The current spot rate for capesize vessels of $11,182 has increased about 90% from the average spot rate for the months of February and March.”

Cash Distribution

The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2019 of $0.02 per unit. The cash distribution is payable on May 14, 2019 to all unitholders of record as of May 10, 2019.

Financing Arrangements

On April 5, 2019, Navios Partners completed a $20.0 million sale and leaseback transaction with unrelated third parties, for a 2009-built Capesize vessel. The sale and leaseback transaction has a duration of ten years and an implied fixed interest rate of 6.6%. Navios Partners has the option to buy the vessel starting at the end of year four de-escalating to a $6.3 million obligation at maturity. There are no financial covenants or no loan-to-value requirements in connection with the sale and leaseback transaction.

On April 15, 2019, Navios Partners drew $31.4 million under a new commercial bank facility to refinance two Capesize vessels.

On April 23, 2019, the Navios Galaxy was sold for approximately $6.0 million and released from the Term Loan B collateral package. The sale resulted in an impairment loss of $7.3 million, which was included in the first quarter of 2019.

On May 3, 2019, Navios Partners released one Ultra-Handymax vessel from the Term Loan B collateral package.

Following the above transactions, Navios Partners prepaid $73.5 million to the Term Loan B in order to release five vessels from the collateral package.

Reverse Stock Split

On April 25, 2019, Navios Partners announced that its Board of Directors has approved a 1-for-15 reverse split of its issued and outstanding common units. The reverse split will be effected before the market opens on May 21, 2019. Common units will begin trading on May 21, 2019 on a split-adjusted basis on the New York Stock Exchange, under the same ticker symbol, NMM. Following the reverse split, the Company expects to have approximately 11.1 million common units issued and outstanding.

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 2.2 years. Navios Partners has currently contracted out 84.8% of its available days for 2019, 36.2% for 2020 and 23.4% for 2021, including index-linked charters, expecting to generate revenues (excluding index-linked charters) of approximately $117.2 million, $82.0 million and $80.8 million, respectively. The average contracted daily charter-out rate for the fleet is $15,811, $27,479 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 ended March 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
 
 March 31,
2019
  March 31,
2018

 
(in $‘000 except per unit data)(unaudited)
  (unaudited)
 
Revenue$46,818  $53,052 
Net (Loss)/ Income$(9,523)  $5,478 
Adjusted Net (Loss)/ Income$(2,178)(1) $6,092(2)
Net cash provided by operating activities$10,483  $6,427 
EBITDA$15,313  $30,911 
Adjusted EBITDA$22,658(1) $31,525(2)
Loss/ Earnings per Common Unit (basic and diluted)$(0.06)  $0.03 
Adjusted (Loss)/  Earnings per Common Unit (basic and diluted)$(0.01)(1) $0.04(2)
Operating Surplus$5,702(1) $17,460(2)
Maintenance and Replacement Capital Expenditure Reserve$7,474  $6,062 

(1) Adjusted Net Loss, Adjusted EBITDA and Adjusted Loss per Common Unit for the three month period ended March 31, 2019 have been adjusted to exclude a $7.3 million impairment loss related to the sale of one of our vessels.
(2) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit for the three month period ended March 31, 2018 have been adjusted to exclude a $0.6 million equity compensation expense.

Three month periods ended March 31, 2019 and 2018

Time charter and voyage revenues for the three month period ended March 31, 2019 decreased by $6.2 million, or 11.8%, to $46.8 million, as compared to $53.1 million for the same period in 2018. The decrease in time charter and voyage revenues was mainly attributable to: (i) the decrease in revenue due to the sales of 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 $13,209 per day for the three month period ended March 31, 2019, from $16,108 per day for the three month period ended March 31, 2018. That decrease was partially mitigated by the increase in revenue following the acquisition of five vessels in 2018. The available days of the fleet increased to 3,277 days for the three month period ended March 31, 2019, as compared to 3,186 days for the three month period ended March 31, 2018, mainly due to the increased size of the fleet.

EBITDA for the three month period ended March 31, 2019 was negatively affected by the accounting effect of a $7.3 million impairment loss on the sale of the Navios Galaxy I. EBITDA for the three month period ended March 31, 2018 was negatively affected by the accounting effect of a $0.6 million equity compensation expense. Excluding these items, Adjusted EBITDA decreased by $8.9 million to $22.7 million for the three month period ended March 31, 2019, as compared to $31.5 million for the same period in 2018. The decrease in Adjusted EBITDA was primarily due to a: (i) $6.2 million decrease in revenue; (ii) $1.8 million increase in time charter and voyage expenses; (iii) $1.1 million increase in general and administrative expenses; (iv) $0.4 million decrease in other income; and (vi) $1.0 million decrease in equity in net earnings of affiliated companies. The above decrease was partially mitigated by a: (i) $0.1 million decrease in management fees; and (ii) $1.6 million decrease in other expenses.

The reserves for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2019 and 2018 were $7.5 million and $6.1 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 March 31, 2019 of $5.7 million, as compared to $17.5 million for the three month period ended March 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 Loss for the three month period ended March 31, 2019 was negatively affected by the accounting effect of a $7.3 million impairment loss on the sale of the Navios Galaxy I. Net Income for the three month period ended March 31, 2018 was negatively affected by the accounting effect of a $0.6 million equity compensation expense. Excluding these items, Adjusted Net Loss for the three month period ended March 31, 2019 amounted to $(2.2) million compared to $6.1 million for the three month period ended March 31, 2018. The decrease in Adjusted Net Income of $8.3 million was due to: (i) an $8.9 million decrease in adjusted EBITDA; and (ii) a $1.7 million increase in interest expense and finance cost, net. The above decrease was partially mitigated by a: (i) $1.4 million decrease in depreciation and amortization expense; and (ii) $0.8 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 ended March 31, 2019 and 2018.

  Three Month
 Period Ended
March 31, 2019
 (unaudited)
 Three Month
 Period Ended
March 31, 2018
 (unaudited)
Available Days(1)  3,277  3,186
Operating Days(2)  3,213  3,142
Fleet Utilization(3)  98.0%  98.6%
Time Charter Equivalent Combined (per day) (4) 13,209 $16,108
Time Charter Equivalent Drybulk (per day) (4) 10,457 $12,265
Time Charter Equivalent Containers (per day) (4) 30,501 $31,700
Vessels operating at period end  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 on Monday, May 6, 2019 to discuss the results for the first quarter ended March 31, 2019.

Call Date/Time: Monday, May 6, 2019 at 8:30 am ET
Call Title: Navios Partners Q1 2019 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 3077425

The conference call replay will be available two hours after the live call and remain available for one week at the following numbers:

US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 3077425

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, 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 8645
Investors@navios-mlp.com

Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@capitallink.com

EXHIBIT 1

NAVIOS MARITIME PARTNERS L.P.
SELECTED BALANCE SHEET DATA

(Expressed in thousands of U.S. Dollars except unit data)

 March 31,
2019
(unaudited)
 December 31,
2018
(unaudited)
ASSETS     
Cash and cash equivalents, including restricted cash$50,352 $61,455
Vessels, net 1,025,193  1,043,250
Other assets (including current and non-current) 206,054  205,096
Intangible assets 4,040  4,332
      
Total assets$1,285,639 $1,314,133
      
LIABILITIES AND PARTNERS’ CAPITAL     
Other current liabilities$19,901 $25,529
Current portion of long-term borrowings, net 26,748  26,804
Long-term borrowings, net of current portion 473,928  480,681
Other non-current liabilities 4,161  4,366
Total partners’ capital 760,901  776,753
      
Total liabilities and partners’ capital$1,285,639 $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
March 31, 2019

(unaudited)
 Three Month
Period Ended
March 31, 2018

(unaudited)
 
Time charter and voyage revenues$46,818  $53,052 
Time charter and voyage expenses (3,529)  (1,730)
Direct vessel expenses (1,583)  (1,625)
Management fees (entirely through related parties transactions) (16,610)  (16,691)
General and administrative expenses (4,013)  (3,531)
Depreciation and amortization (13,492)  (14,917)
Vessel impairment losses (7,345)   
Interest expense and finance cost, net (11,514)  (9,853)
Interest income 1,743   962 
Other income 217   574 
Other expense (232)  (1,803)
Equity in net earnings of affiliated companies 17   1,040 
        
Net (loss)/ income$(9,523) $5,478 
        

(Loss)/ Earnings per unit:

 Three Month
Period Ended
March 31, 2019
(unaudited)
  Three Month
Period Ended
March 31, 2018
(unaudited)
 
(Loss)/ Earnings per unit:     
Common unit (basic and diluted)$(0.06) $0.03 


NAVIOS MARITIME PARTNERS L.P.
Other Financial Information

(Expressed in thousands of U.S. Dollars except unit data)

 Three Month 
Period Ended
March 31, 2019
(unaudited)  
 Three Month 
Period Ended
March 31, 2018
(unaudited)  
 
Net cash provided by operating activities$10,483  $6,427 
Net cash used in investing activities (5,375)  (13,635)
Net cash (used in)/ provided by financing activities (16,211)  25,936 
        
(Decrease)/ increase in cash, cash equivalents and restricted cash$(11,103) $18,728 
        

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 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 Libra Panamax 2019 81,000 H2 2019 


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

EXHIBIT 3
Disclosure of Non-GAAP Financial Measures

1. EBITDA and Adjusted EBITDA

EBITDA represents net (loss)/ income 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 and vessel impairment losses. 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 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; and (ix) non-cash accrued interest income from receivable from affiliates. 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);

    -- comply with applicable law, any of Navios Partners’ debt instruments, or other agreements; or  

    -- provide funds for distributions to the unitholders and to the general partner for any one or more of the next four quarters;

  • plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Working capital borrowings are generally borrowings that are made under any revolving credit or similar agreement used solely for working capital purposes or to pay distributions to partners.

Available Cash is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Available cash is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

4. Reconciliation of Non-GAAP Financial Measures

  Three Month
Period Ended
March 31, 2019
($ ‘000)
(unaudited)
  Three Month
Period Ended
March 31, 2018
($ ‘000)
(unaudited)
Net cash provided by operating activities $10,483   $6,427 
Net (decrease)/ increase in operating assets  (1,636)   11,756 
Net decrease in operating liabilities  2,939    1,969 
Net interest cost  9,771    8,891 
Amortization and write-off of deferred financing cost  (1,663)   (1,710)
Non cash accrued interest income and amortization of deferred revenue  3,171    3,087 
Equity compensation expense  (494)   (614)
Vessel impairment losses  (7,345)    
Non cash accrued interest income from receivable from affiliates  70    65 
Equity in earnings of affiliates, net of dividends received  17    1,040 
EBITDA(1) $15,313   $30,911 
Equity compensation expense      614 
Vessel impairment losses  7,345     
Adjusted EBITDA $22,658   $31,525 
Cash interest income  216    118 
Cash interest paid  (9,698)   (8,121)
Maintenance and replacement capital expenditures  (7,474)   (6,062)
Operating Surplus $5,702   $17,460 
Cash reserves  (2,338)   (14,040)
Available cash for distribution $3,364   $3,420 
        

(1)

      
  Three Month 
Period Ended
March 31, 2019
(unaudited)
 
  Three Month 
Period Ended
March 31, 2018
(unaudited)
 
Net cash provided by operating activities$10,483  $6,427 
Net cash used in investing activities$(5,375) $(16,635)
Net cash (used in)/ provided by financing activities$ (16,211) $25,936