News Releases

Navios Maritime Partners L.P.


Reports Financial Results for the Fourth Quarter and the Year Ended December 31, 2009

  • 1.2% increase in distributions to $0.41 per unit for the Q4 2009
  • 35.1% increase in quarterly Operating Surplus to $12.7 million
  • 25.4% increase in quarterly EBITDA to $17.8 million
  • 25% increase in quarterly net income to $11.0 million


  • PIRAEUS, GREECE, January 27, 2010 - Navios Maritime Partners L.P. ("Navios Partners") (NYSE: "NMM"), an owner and operator of dry cargo vessels, reported its financial results for the fourth quarter and the year ended December 31, 2009.

    Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "I am proud of our accomplishments during 2009, which was an uncertain and difficult period. Despite the volatility, we engaged in a number of transactions that created stability at Navios Partners by raising additional equity on an accretive basis to our unit holders, acquiring new vessels, reducing leverage ratios and creating financial flexibility. We also raised distributions during a period where others were suspending or reducing such payments."

    Ms. Frangou continued "We believe that we are positioned to take advantage of opportunities in 2010 as we seek to continue growing Navios Partners."


    RECENT DEVELOPMENTS

    Increase in Cash Distributions The Board of Directors of Navios Partners declared an increase to cash distributions for the fourth quarter of 2009 to $0.41 per unit. This represents an increase of 1.2% from $0.405 per unit in the third quarter of 2009. The distribution is payable on February 11, 2010 to holders of record on February 8, 2010.


    Acquisition of Vessels

    On January 8, 2010, Navios Partners purchased the vessel Navios Hyperion, a 75,707 dwt Panamax vessel built in 2004, for a price of $63.0 million. Navios Hyperion has been chartered out at a net rate of $32,300 per day until February 2010 and a net rate of $37,953 per day until April 2014, at which point the charter will expire. The annual EBITDA is expected to be approximately $11.9 million.

    In December 2009, Navios Partners exercised its option to purchase the Navios Sagittarius for a price of $25.0 million. The vessel, which was chartered in since June 10, 2009, was delivered to Navios Partners on January 12, 2010.

    Following the acquisition of Navios Hyperion and Navios Sagittarius, Navios Partners' operational fleet has 12 drybulk vessels, consisting of one Capesize, ten Panamax vessels and one Ultra-Handymax vessel. The fleet has a total capacity of approximately 1.0 million dwt and an average age of approximately 7.0 years.


    Credit Facility Amendment

    On January 11, 2010, Navios Partners amended its existing credit facility and borrowed an additional $24.0 million to refinance the acquisitions of Navios Apollon and Navios Hyperion and to finance the exercise of the option to acquire Navios Sagittarius. The amended credit facility agreement provided for (a) the prepayment of $12.5 million that took place on January 11, 2010 and (b) a reduced interest rate margin ranging from 1.00% to 1.45% depending on the applicable loan to value ratio. We anticipate that the new interest rate margin would result in interest expense savings for 2010 of approximately $2.1 million.

    After the amendment to the Credit Facility, the loan balance is as follows:

    Balance: December 31, 2009     $195.0
    Prepayment - $12.5 million     (12.5)
    Additional borrowing     24.0
    Balance: January 27, 2010     $206.5


    No further principal payments are required until the first quarter of 2012.

    Completion of Offering of 4,000,000 Common Units

    On November 24, 2009, Navios Partners completed a public offering of 4,000,000 common units at $14.90 per unit and raised gross proceeds of $59.6 million. The net proceeds of the offering, including discount and excluding offering costs of $0.2 million, were $56.8 million. Navios Partners also issued 81,633 additional general partnership units to its general partner in exchange for $1.2 million of net proceeds (the "November Offering").


    Shipmanagement Agreement

    Navios Partners fixed the rate for ship management services of its owned fleet until November 2011 under the existing agreement with Navios Shipmanagement Inc., a subsidiary of Navios Maritime Holdings, Inc. ("Navios Holdings") (NYSE: "NM"). The management fees are (a) $4,500 daily rate per Ultra-Handymax vessel, (b) $4,400 daily rate per Panamax vessel and (c) $5,500 daily rate per Capesize vessel.


    Long Term and Insured Cash Flow

    Navios Partners has entered into long-term time charters-out for all 12 vessels with a remaining average term of 3.9 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 100% for 2010, 83.3% for 2011 and 78% for 2012 generating revenues of approximately $118.4 million, $103.7 million and $98.7 million, respectively. The average contractual daily charter-out rate for the fleet is $27,051, $28,422 and $28,792 for 2010, 2011 and 2012, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2010 and 2011 is $13,456 and $13,513, respectively.

    Navios Partners' charter-out contracts have been insured by an AA+ rated European Union governmental agency.


    FINANCIAL HIGHLIGHTS

    For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statement of operations for the three month periods and the years ended December 31, 2009 and December 31, 2008. The quarterly 2009 and 2008 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 period ended December 31, 2009

    Time charter and voyage revenues for the three month period ended December 31, 2009 increased by $4.0 million, or 18.5%, to $25.6 million as compared to $21.6 million for the same period in 2008. The increase was mainly attributable to the acquisition of the rights to the Navios Sagittarius on June 10, 2009 and the acquisition of Navios Apollon on October 29, 2009.

    EBITDA increased by $3.6 million or 25.4% to $17.8 million for the three month period ended December 31, 2009 as compared to $14.2 million for the same period of 2008. This $3.6 million increase in EBITDA was primarily due to: (a) a $4.0 million increase in revenue following the delivery of Navios Sagittarius in Navios Partners' chartered-in fleet in June 2009 and the acquisition of Navios Apollon in October 2009; (b) a $0.7 million decrease in general and administrative expenses; and (c) a $0.3 decrease in net other expenses. The above favorable variance of $5.0 million was partly offset by a $1.0 million increase in time charter and voyage expenses due to the delivery of Navios Sagittarius in Navios Partners' chartered-in fleet in June 2009 and a $0.4 million increase in management fees due to the acquisition of Navios Apollon.

    The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended December 31, 2009 and 2008 was $2.1 million and $2.7 million, respectively. Expansion capital expenditures for the three month periods ended December 31, 2009 and 2008 was $34.5 million and $0, respectively.

    Navios Partners generated an Operating Surplus for the three month period ended December 31, 2009 of $12.7 million in comparison to $9.4 million for the three month period ended December 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).

    Net income for the three months ended December 31, 2009 amounted to $11.0 million compared to $8.8 million for the three months ended December 31, 2008. The increase in net income by $2.2 million was due to: (a) a $3.6 million increase in EBITDA; (b) a $0.1 million decrease in interest expense and (c) a $0.1 million decrease in direct vessel expenses. This increase of $3.8 million was partly offset by a $1.6 million increase in depreciation and amortization expense due to the acquisition of the rights to the Navios Sagittarius and the acquisition of Navios Apollon.


    Year ended December 31, 2009

    Time charter and voyage revenues for the year ended December 31, 2009 increased by $17.5 million or 23.3% to $92.6 million as compared to $75.1 million for the same period in 2008. The increase was mainly attributable to the delivery of the Navios Aldebaran on March 17, 2008, the acquisition of the Navios Hope on July 1, 2008, both of which were fully operating during the year ended December 31, 2009, the acquisition of the rights to the Navios Sagittarius on June 10, 2009 and the acquisition of Navios Apollon on October 29, 2009.

    EBITDA increased by $14.4 million or 28.7% to $64.5 million for the year ended December 31, 2009 as compared to $50.1 million for the same period of 2008. This $14.4 million increase in EBITDA was primarily due to: (a) a $17.5 million increase in revenue as a result of the increased number of operating days from 2,991 for the year ended December 31, 2008 to 3,552 for the year ended December 31, 2009; (b) a $0.6 million decrease in general and administrative expenses; and (c) a $0.3 million decrease in net other expenses which was partially offset by a $2.3 million increase in time charter and voyage expenses as a result of the increased number of vessels in Navios Partners' chartered-in fleet and a $1.7 million increase in management fees, due to the increase in the number of vessels.

    The reserve for estimated maintenance and replacement capital expenditures for the years ended December 31, 2009 and 2008 was $8.0 million and $9.9 million, respectively. Expansion capital expenditures for the years ended December 31, 2009 and 2008 was $69.1 million and $69.2 million, respectively.

    Navios Partners generated an Operating Surplus for the year ended December 31, 2009 of $47.8 million in comparison to $32.1 million for the year ended December 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).

    Net income for the year ended December 31, 2009 amounted to $34.3 million compared to $28.8 million for the year ended December 31, 2008. The increase in net income by $5.5 million was due to: (a) a $14.4 million increase in EBITDA; and (b) a $1.2 million decrease in interest expense. This increase of $15.6 million was partially offset by: (a) a $4.0 million increase in depreciation and amortization expense due to the acquisition of the Navios Hope on July 1, 2008, which was fully operating during the year ended December 31, 2009, the acquisition of the rights to the Navios Sagittarius and the acquisition of Navios Apollon; and (b) a $6.1 million non-cash compensation 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 month periods ended December 31, 2009 and 2008 and the years ended December 31, 2009 and 2008.





    Conference Call details:

    Navios Partners' management will host a conference call to discuss the results on Wednesday, January 27, 2010, 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 3, 2010 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 webcast of the conference call, through the NAVIOS MARITIME PARTNERS L.P. 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 on the day of the call.

    About Navios Maritime Partners L.P.

    Navios Maritime Partners L.P. (NYSE: NMM), a publicly traded master limited partnership formed by Navios Maritime Holdings Inc (NYSE: NM) is an owner and operator of 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 "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.

    Contacts
    Public & Investor Relations Contact:
    Navios Maritime Partners L.P.
    Investor Relations
    Nicolas Bornozis
    Capital Link, Inc.
    Tel. (212) 661-7566
    E-mail:naviospartners@capitallink.com
















    EXHIBIT 3



    Disclosure of Non-GAAP Financial Measures


    1. EBITDA

    EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. 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.

    EBITDA is presented to provide 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 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:

  • the amount of cash reserves established by the board of directors to:
  • 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