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Navios Maritime Partners L.P.
Reports Financial Results for the First Quarter ended March 31, 2011
- Cash Distribution of $0.43 per unit for the first quarter ended March 31, 2011
- 45.6% increase in quarterly Revenues to $42.8 million
- 56.8% increase in quarterly Operating Surplus to $26.5 million
- 52.1% increase in quarterly EBITDA to $32.4 million
PIRAEUS, GREECE, April 20, 2011 - Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an owner and operator of dry cargo vessels, today reported its financial results for the first quarter ended March 31, 2011. NAVIOS MARITIME PARTNERS L.P.
Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "We are pleased to announce a cash distribution of $0.43 per unit. We are also pleased with our recent successful equity offering. The net proceeds will allow us to acquire additional vessels. Through these acquisitions, our objective is to continue to increase our distributions while reducing our leverage. We are mindful that shipping can be cyclical and we work to eliminate the impact of cyclicality on our distributions."
The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2011 of $0.43 per unit. The distribution is payable on May 11, 2011 to holders of record on May 5, 2011.
Completion of Offering of 4,600,000 Common Units Raising $90.5 Million Gross Proceeds
On April 13, 2011, Navios Partners completed a public offering of 4,000,000 common units at $19.68 per unit and raised gross proceeds of approximately $78.7 million to fund its fleet expansion. In connection with the offering on April 11, 2011, the underwriters exercised their overallotment option, resulting in the issuance of 600,000 additional common units, raising additional gross proceeds of $11.8 million. The net proceeds of this offering were approximately $86.1 million. Pursuant to this offering, Navios Partners also issued 93,878 additional general partnership units to its general partner, raising additional net proceeds of $1.8 million.
Long-Term and Insured Cash Flow
Navios Partners has entered into long-term time charter-out agreements for all of its 16 vessels with a remaining average term of 4.3 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 100.0% for 2011, 95.2% for 2012 and 75.1% for 2013, generating revenues of approximately $176.8 million, $170.7 million and $133.9 million, respectively. The average contractual daily charter-out rate for the fleet is $30,270, $30,601 and $32,560 for 2011, 2012 and 2013, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2011 is $13,513.
Navios Partners' charter-out contracts are insured for credit default by an AA+ rated European Union governmental agency.
In January 2011, Korea Line Corporation ("KLC") filed for receivership. The Navios Melodia charter was affirmed and will be performed by KLC on its original terms, provided that during an interim suspension period the sub-charterer of the Navios Melodia will pay us directly. Affirmation of charter has been approved by the South Korean Court.
Following an engine breakdown, the Navios Apollon was off hire in March 2011 and remains off-hire.
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statement of operations for the three month period ended March 31, 2011 and 2010. The quarterly 2011 and 2010 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-US GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results.
Three month periods ended March 31, 2011 and 2010
Time charter and voyage revenues for the three month period ended March 31, 2011 increased by $13.4 million or 45.6% to $42.8 million, as compared to $29.4 million for the same period in 2010.The increase was mainly attributable to the acquisition of the Navios Hyperion on January 8, 2010, the Navios Aurora II on March 18, 2010, the Navios Pollux on May 21, 2010, the Navios Fulvia and the Navios Melodia on November 15, 2010. As a result of the vessel acquisitions, available days of the fleet increased to 1,407 days for the three month period ended March 31, 2011, as compared to 1,081 days for the three month period ended March 31, 2010 and time charter equivalent ("TCE") increased to $30,422 for the three month period ended March 31, 2011, from $27,222 for the respective period in 2010. The increase in revenue was offset by $2.0 million of off-hire due to the scheduled dry dock of one owned and one charter-in vessel of our fleet and the engine breakdown of the Navios Apollon that was off-hire during March 2011.
EBITDA increased by $11.1 million to $32.4 million for the three month period ended March 31, 2011 as compared to $21.3 million for the same period of 2010. The increase in EBITDA was due to a $13.4 million increase in revenue following the acquisitions of the Navios Hyperion and the Navios Sagittarius in January 2010, the Navios Aurora II in March 2010, the Navios Pollux in May 2010 and the Navios Melodia and the Navios Fulvia in November 2010; The above increase was partially offset by a $2.0 million increase in management fees and a $0.3 million increase in administrative and other expenses as a result of the increased number of vessels in Navios Partners' fleet.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2011 and 2010 was $4.3 million and $3.3 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3). Expansion capital expenditures for each of the three month periods ended March 31, 2011 and 2010 was $0 and $175.8 million, respectively.
Navios Partners generated an Operating Surplus for the three month period ended March 31, 2011 of $26.5 million, as compared to $16.9 million for the three month period ended March 31, 2010. 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 in Exhibit 3).
Net income for the three months ended March 31, 2011 amounted to $16.6 million compared to $12.6 million for the three months ended March 31, 2010. The increase in net income by $4.0 million was due to: (a) a $11.1 million increase in EBITDA; and (b) a $0.1 million increase in interest income; partially offset by (i) a $0.8 million increase in interest expense, and (ii) a $6.3 million increase in depreciation and amortization expense due to the acquisition of the Navios Sagittarius, the Navios Hyperion, the Navios Aurora II, the Navios Pollux, the Navios Melodia and the Navios Fulvia and the favorable lease terms recognized in relation to these acquisitions.
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 month period ended March 31, 2011 and 2010.
(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:
Navios Partners' management will host a conference call today, Wednesday, April 20, 2011 to discuss the results for the first quarter ended March 31, 2011.
Conference Call details:
Call Date/Time: Wednesday, April 20, 2011 at 08:30 am ET
Call Title: Navios Partners Q1 2011 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 5989 7289
The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.642.1687
International Replay Dial In: +1.706.645.9291
Conference ID: 5989 7289
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 7:45 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Partners (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 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. Although the 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 changes in the demand for dry bulk vessels, 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 the Navios Partners' filings with the Securities and Exchange Commission. 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.
Investor Relations Contact:
Navios Maritime Partners L.P.
+1 (212) 906 8645
Capital Link, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. Dollars except unit and per unit amounts)
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
(1) Represents the initial expiration date of the time charter and, if applicable, the new time charter expiration date for the vessels with new time charters.
(2) Net time charter-out rate per day (net of commissions). Represents the charter-out rate during the time charter period prior to the time charter expiration date and, if applicable, the charter-out rate under the new time charter.
(3) Profit sharing 50% above $16,984/ day based on Baltic Panamax TC Average.
(4) Following an engine breakdown the vessel was off hire in March 2011 and remains off-hire.
(5) In January 2011, Korea Line Corporation ("KLC") filed for receivership, which is a reorganization under South Korean bankruptcy law. The charter was affirmed and will be performed by KLC on its original terms, provided that during an interim suspension period the sub-charterer of Navios Melodia will pay us directly.
(6) The Navios Prosperity is chartered-in for seven years starting from June 19, 2008 and we will have options to extend for two one-year periods. We have the option to purchase the vessel after June 2012 at a purchase price that is initially 3.8 billion Yen declining each year by 145 million Yen.
(7) The Navios Aldebaran was delivered on March 17, 2008. Navios Aldebaran is chartered-in for seven years and we have options to extend for two one-year periods. We have the option to purchase the vessel after March 2013 at a purchase price that is initially 3.6 billion Yen declining each year by 150 million Yen.
Disclosure of Non-GAAP Financial Measures
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is a "non-GAAP financial measure" 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.
Navios Partners believes EBITDA provides additional information with respect to Navios Partners' ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination of cash distribution. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used 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 and estimated maintenance and replacement 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.
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:
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.
- o 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.
4. Reconciliation of Non-GAAP Financial Measures
|A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014 MAY BE REQUESTED, FREE OF CHARGE, BY CONTACTING:
Navios Maritime Partners L.P.
7, Avenue de Grande Bretagne
MC 98000 Monaco
Tel: (377) 9798-2140
Fax: (377) 9798-2141