Navios Maritime Partners L.P. Reports Financial Results for the First Quarter Ended March 31, 2015
(firmenpresse) - MONACO -- (Marketwired) -- 05/04/15 -- Navios Maritime Partners L.P. (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 first quarter ended March 31, 2015.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, "I am pleased with our results for the quarter. We earned $38.0 million of EBITDA and $10.9 million of net income. We recently announced a quarterly distribution of $0.4425, representing an annual distribution of $1.77 per unit. We remain committed to this annual distribution, at least through 2016, and we have maintained it even during difficult phases of the shipping cycle. We are prepared to increase our distribution when the shipping market stabilizes and the market rewards us, as our current yield of 13.4% is more than two times the yield on the Alerian MLP."
Ms. Frangou continued, "The container segment has become the workhorse of our company. In the past 18 months, we acquired eight container vessels that will generate about $1 billion in revenue, representing 66% of our expected contracted revenue. For 2015, these vessels will generate about 43% of expected EBITDA. In addition, we fixed almost 100% of our open days for dry bulk vessels for 2015, thereby eliminating further spot market volatility. However, the dry bulk segment, where our historical roots are, and which we continue to have material exposure in, offers Navios Partners significant upside when the dry bulk market improves."
The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2015 of $0.4425 per unit. The cash distribution is payable on May 14, 2015 to unitholders of record as of May 13, 2015.
On April 22, 2015, Navios Partners took delivery of the MSC Cristina, a 2011 South Korean-built Container vessel of 13,100 TEU. The vessel is chartered out for 12 years at a rate of $60,275 net per day, with Navios Partners' option to terminate after year seven. The acquisition was financed with cash on its balance sheet and bank debt. Navios Partners entered into a credit facility of $79.8 million, which bears interest at LIBOR plus 275 bps per annum and has an amortization profile of 13.5 years.
On February 26, 2015, Navios Partners secured, for no consideration, an option to acquire a 2012 South Korean-built container vessel of 13,100 TEU from an unrelated third party.
The main terms of the option are as follows:
Acquisition price: $147.8 million
Exercisable by June 2015
Delivery of vessel : Q3 2015
Remaining charter duration at delivery: 12 years (with Navios Partners' option to terminate after year seven)
Charter rate: $60,275 net per day
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of 3.5 years, expected to provide a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 98.4% of its available days for 2015, 58.3% for 2016 and 45.2% for 2017, expecting to generate revenues of approximately $236.9 million, $185.9 million and $166.8 million, respectively. The average expected daily charter-out rate for the fleet is $21,265, $28,108 and $32,633 for 2015, 2016 and 2017, respectively.
Navios Partners has 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 months ended March 31, 2015 and 2014. The quarterly 2015 and 2014 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.
Time charter and voyage revenues for the three month period ended March 31, 2015 decreased by $0.7 million or 1.2% to $56.8 million, as compared to $57.5 million for the same period in 2014. The decrease was mainly attributable to the decrease in TCE to $18,625 per day for the three month period ended March 31, 2015, from $20,785 per day for the three month period ended March 31, 2014. The above decrease in time charter and voyage revenues was partially mitigated by an increase in revenue due to the delivery of the YM Utmost and the YM Unity in the second half of 2014. As a result of the vessel acquisitions, available days of the fleet increased to 2,952 days for the three month period ended March 31, 2015, as compared to 2,668 days for the three month period ended March 31, 2014.
EBITDA for the first quarter of 2014 has been positively affected by the accounting effect of $29.8 million income from the insurance settlement. Excluding this item, Adjusted EBITDA decreased by $1.3 million to $38.0 million for the three month period ended March 31, 2015, as compared to $39.2 million for the same period in 2014. The decrease in Adjusted EBITDA was due to a $0.7 million decrease in revenue, a $1.4 million increase in management fees due to the increased number of vessels and a $0.4 increase in other expense. The above decrease was partially mitigated by a $0.1 million decrease in general and administrative expenses, a $1.0 million decrease in time charter and voyage expenses and a $0.2 million increase in other income.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2015 and 2014 was $3.2 million and $5.9 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, 2015 of $27.6 million, as compared to $56.8 million for the three month period ended March 31, 2014. 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 first quarter of 2014 has been (i) positively affected by the accounting effect of $29.8 million income from the insurance settlement and (ii) negatively impacted by the $22.0 million loss from the non-cash accelerated amortization of the intangible asset relating to one Capesize vessel. Excluding these items, Adjusted Net income for the three months ended March 31, 2015 amounted to $10.9 million compared to $10.6 million for the three months ended March 31, 2014. The increase in Adjusted Net income by $0.3 million was due to a $3.6 million decrease in depreciation and amortization expense partially offset by a $1.3 million decrease in Adjusted EBITDA, a $1.5 million increase in interest expense and finance cost, net and a $0.5 million increase in direct vessel expenses.
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three month periods ended March 31, 2015 and 2014.
Navios Partners' management will host a conference call today, Monday, May 4, 2015 to discuss the results for the first quarter ended March 31, 2015.
Call Date/Time: Monday, May 4, 2015 at 8:30 am ET
Call Title: Navios Partners Q1 2015 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 2282 7826
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: 2282 7826
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, 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 Container vessels 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, 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 wages, 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 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.
Adjusted EBITDA represents EBITDA excluding certain items, as described under "Earnings Highlights".
EBITDA and Adjusted EBITDA are presented because Navios Partners believes that EBITDA and Adjusted EBITDA are 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 and Adjusted EBITDA are "non-GAAP financial measures" 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 and Adjusted EBITDA are frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA and Adjusted 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.
Navios Maritime Partners L.P.
+1 (212) 906 8645
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
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Datum: 04.05.2015 - 10:44 Uhr
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