Navios Maritime Partners L.P. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2014
(firmenpresse) - MONACO -- (Marketwired) -- 10/27/14 -- Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM)
Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an international owner and operator of drybulk and container vessels, today reported its financial results for the third quarter and nine months ended September 30, 2014.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated, "I am pleased with the results for the third quarter -- we recorded net income of $13.0 million and EBITDA of $37.5 million. We also recently announced our quarterly distribution of $0.44 and a quarter cent, representing an annual distribution of $1.77 per unit and a current yield of about 10.5%.
Ms. Frangou continued, "We used the prolonged market weakness to strengthen our company. We improved our balance sheet, worked with our sponsor to increase operating efficiency, grew our dry bulk fleet and entered the container industry, where we acquired container vessels with an average charter length of about eight years generating approximately $60.0 million of annual EBITDA. As a result, we are positioned to prosper in the current market and will enjoy the advantages of a more robust market."
The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2014 of $0.4425 per unit. The cash distribution is payable on November 10, 2014 to unitholders of record on November 7, 2014.
On August 29, 2014, Navios Partners acquired from an unrelated third party the YM Utmost, a 2006 South Korean-built Container vessel of 8,204 TEU, for a cash acquisition cost of $59.0 million. The vessel is chartered out for a minimum four years, at $34,266 net per day.
The YM Unity, a 2006 South Korean-built Container vessel of 8,204 TEU is expected to be delivered by October 31, 2014. The vessel will be chartered out for a minimum four years, at $34,266 net per day.
On September 22, 2014, Navios Partners entered into a new credit facility of up to $56.0 million with ABN AMRO Bank N.V to finance a portion of the purchase price payable in connection with the acquisition of the two container vessels. The facility bears interest at LIBOR plus 300 bps per annum and has an amortization profile of 10.2 years.
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of 3.1 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 99.2% of its available days for 2014, 61.3% for 2015 and 42.0% for 2016, expecting to generate revenues of approximately $227.1 million, $186.8 million and $148.2 million, respectively. The average expected daily charter-out rate for the fleet is $20,604, $26,097 and $30,125 for 2014, 2015 and 2016, respectively. The average daily charter-in rate for the charter-in vessels is $13,619 for 2014.
Following the termination of the credit default insurance through its third party insurer, Navios Partners continues to have insurance on certain long-term charter-out contracts of drybulk vessels for credit default occurring until the end of 2016, through an agreement with Navios Maritime Holdings Inc. up to a maximum cash payment of $20.0 million.
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three and nine month periods ended September 30, 2014 and 2013. The quarterly 2014 and 2013 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results.
Time charter and voyage revenues for the three month period ended September 30, 2014 increased by $8.7 million or 18.7% to $55.3 million, as compared to $46.6 million for the same period in 2013. The increase was mainly attributable to the acquisition of the Navios Joy on September 11, 2013, the Navios Harmony on October 11, 2013, the five container vessels in December 2013, the Navios La Paix and the Navios Sun in January 2014 and the YM Utmost in August 2014. As a result of the vessel acquisitions, available days of the fleet increased to 2,709 days for the three month period ended September 30, 2014, as compared to 1,952 days for the three month period ended September 30, 2013. The above increase in time charter and voyage revenues was partially mitigated by the decrease in time charter equivalent ("TCE") to $20,009 for the three month period ended September 30, 2014, from $23,202 for the three month period ended September 30, 2013.
EBITDA increased by $1.8 million to $37.5 million for the three month period ended September 30, 2014, as compared to $35.6 million for the same period in 2013. The increase in EBITDA was due to an $8.7 million increase in revenue, a $0.2 million decrease in time charter and voyage expenses and a $0.3 million decrease in other expense. The above increase was partially mitigated by a $3.8 million increase in management fees due to the increased number of vessels, a $0.4 million increase in general and administrative expenses and a $3.1 million decrease in other income.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended September 30, 2014 and 2013 was $6.0 million and $3.5 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 September 30, 2014 of $25.0 million, as compared to $28.2 million for the three month period ended September 30, 2013. 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 income for the three months ended September 30, 2014 amounted to $13.0 million compared to $13.1 million for the three months ended September 30, 2013. The decrease in net income by $0.1 million was due to a $2.7 million increase in interest expense and finance cost and a $0.2 million increase in direct vessel expenses partially offset by a $1.8 million increase in EBITDA, a $0.9 million decrease in depreciation and amortization expense and a $0.1 million increase in interest income.
Time charter and voyage revenues for the nine month period ended September 30, 2014 increased by $22.0 million or 15.0% to $168.0 million, as compared to $146.0 million for the same period in 2013. The increase was mainly attributable to the acquisition of the Navios Joy on September 11, 2013, the Navios Harmony on October 11, 2013, the five container vessels in December 2013, the Navios La Paix and the Navios Sun in January 2014 and the YM Utmost in August 2014. As a result of the vessel acquisitions, available days of the fleet increased to 8,072 days for the nine month period ended September 30, 2014, as compared to 5,736 days for the nine month period ended September 30, 2013. The above increase in time charter and voyage revenues was partially mitigated by the decrease in TCE to $20,277 for the nine month period ended September 30, 2014, from $24,903 for the nine month period ended September 30, 2013.
EBITDA increased by $42.9 million to $160.7 million for the nine month period ended September 30, 2014, as compared to $117.7 million for the same period in 2013. The increase in EBITDA was due to a $22.0 million increase in revenue and a $34.6 million increase in other income. The above increase was partially mitigated by an $11.0 million increase in management fees due to the increased number of vessels, a $1.1 million increase in time charter and voyage expenses, a $1.3 million increase in general and administrative expenses and a $0.2 million increase in other expense.
The reserve for estimated maintenance and replacement capital expenditures for the nine month periods ended September 30, 2014 and 2013 was $17.8 million and $10.4 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Partners generated an Operating Surplus for the nine month period ended September 30, 2014 of $123.8 million, as compared to $99.4 million for the nine month period ended September 30, 2013. 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 income for the nine months ended September 30, 2014 amounted to $61.4 million compared to $48.9 million for the nine months ended September 30, 2013. The increase in net income by $12.5 million was due to a $42.9 million increase in EBITDA and a $0.2 million increase in interest income, partially offset by a $10.5 million increase in interest expense and finance cost, a $19.7 million increase in depreciation and amortization expense and a $0.4 million increase in direct vessels expenses.
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three and nine month periods ended September 30, 2014 and 2013.
Navios Partners' management will host a conference call today, Monday, October 27, 2014 to discuss the results for the third quarter ended September 30, 2014.
Conference Call details:
Call Date/Time: Monday, October 27, 2014 at 08:30 am ET
Call Title: Navios Partners Q3 2014 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 2327 7538
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: 2327 7538
There will also be a live webcast of the conference call, through the Navios Partners website () 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.
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
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.
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.
EBITDA is presented because Navios Partners believes that EBITDA is a basis upon which liquidity can be assessed and present useful information to investors regarding Navios Partners' ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. 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.
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.
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 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.
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.
(1)
Navios Maritime Partners L.P.
+1 (212) 906 8645
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
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