Navios Maritime Partners L.P. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2015
(firmenpresse) - MONACO -- (Marketwired) -- 11/03/15 -- Navios Maritime Partners L.P. (NYSE: NMM)
Navios Maritime Partners L.P. ("Navios Partners" or the "Company") (NYSE: NMM), an international owner and operator of container and dry bulk vessels, today reported its financial results for the third quarter and nine months ended September 30, 2015 and announced that it declared a quarterly cash distribution per common unit of $0.2125 ($0.85 annualized) payable on November 13, 2015, to unitholders of record as of November 12, 2015.
Since the last quarterly report a number of developments have affected the factors underlying Navios Partners' distributions, including significant uncertainty relating to global trade, with deepening uncertainty about prices of most seaborne commodities and continued questions relating to the outlook on seaborne volumes and ton miles. The Board of Directors ("Board") views these factors as indicating demand concerns and thus approaches the current environment cautiously, particularly when coupled with the continued digestion of the oversupply of dry bulk vessels and a difficult financing market.
Because of the changes that have taken place since last quarter's report, and after an extensive review of our fleet and market conditions, the Board has decided to reset the annual distribution to $0.85 per unit.
Some of the factors considered in calibrating the distribution to the current environment were:
Protecting Navios Partners' stakeholders and generating value in the long term for unitholders
Prolonged weak dry bulk industry fundamentals and outlook
Estimated cash flow from long-term charters on Navios Partners container fleet and certain dry bulk vessels
Adding flexibility and strength to the balance sheet during a difficult market
Opportunity for redeploying cash accretively in a fleet renewal program (particularly in the container sector), or otherwise
Inability to grow as access to capital markets was made difficult due to distribution yield
Yields for peer group in a normalized environment
Navios Partners went public in November of 2007. Since that time, the Company's business model consistently returned capital to unitholders, without cessation or reduction. In total, any unitholder who purchased common units on the IPO date would have received a total of $13.115 per unit in distributions, including the distribution to be paid in November 2015.
In setting the revised distribution, the Board considered, among other things, the existing dry bulk and container market environment, the uncertainty about the outlook and demand drivers supporting these markets and the estimated cash flow from our existing fleet. It was determined that Navios Partners should have the ability to sustain the revised distribution for a five-year period. Given the uncertainties of the market, no assurance can be provided that the estimates will be realized or that this distribution will be capable of being sustained during such five-year period.
Navios Holdings owns common units representing 18.1% of Navios Partners. As a result of the dividend reset, the sponsor will forgo approximately $14.1 million in annual distributions.
As a result of the reset of the distribution, the General Partner will forgo approximately $3.9 million consisting of (1) reduction in the General Partner's pro rata share of total distribution and (2) foregone Incentive Distribution Rights.
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of 3.0 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 99.4% of its available days for 2015, 63.7% for 2016 and 45.6% for 2017, expecting to generate revenues of approximately $234.1 million, $193.9 million and $167.5 million, respectively. The average expected daily charter-out rate for the fleet is $20,799, $26,829 and $32,427 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 and nine months ended September 30, 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 September 30, 2015 increased by $1.8 million or 3.3% to $57.1 million, as compared to $55.3 million for the same period in 2014. The increase was mainly attributable to: (i) the increase in revenue following the delivery of the YM Utmost and the YM Unity in the second half of 2014 and the delivery of the MSC Cristina in April 2015; (ii) the increase in time charter equivalent ("TCE") to $20,305 for the three month period ended September 30, 2015, from $20,009 for the three month period ended September 30, 2014; and (iii) the increase in available days of the fleet to 2,768 days for the three month period ended September 30, 2015, as compared to 2,709 days for the three month period ended September 30, 2014, mainly due to increased fleet, mitigated by approximately 84 drydock days during the third quarter of 2015 and the redelivery of the Navios Aldebaran and the Navios Prosperity in the first quarter of 2015.
EBITDA increased by $3.4 million to $40.9 million for the three month period ended September 30, 2015, as compared to $37.5 million for the same period in 2014. The increase in EBITDA was primarily due to: (i) a $1.8 million increase in revenue; (ii) a $2.7 million decrease in time charter and voyage expenses; and (iii) a $1.1 million increase in other income. The above increase was partially mitigated by a $1.9 million increase in management fees due to the increased number of vessels, a $0.1 million increase in general and administrative expenses and a $0.2 million increase in other expenses.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended September 30, 2015 and 2014 was $3.5 million and $6.0 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, 2015 of $30.4 million, as compared to $25.0 million for the three month period ended September 30, 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 three months ended September 30, 2015 amounted to $11.8 million compared to $13.0 million for the three months ended September 30, 2014. The decrease in net income by $1.3 million was due to: (i) a $2.7 million increase in depreciation and amortization expense mainly due to the increased fleet size; (ii) a $0.9 million increase in interest expense and finance cost, net; and (iii) a $1.1 million increase in direct vessel expenses. The above decrease was partially mitigated by an increase in EBITDA by $3.4 million.
Time charter and voyage revenues for the nine month period ended September 30, 2015 increased by $2.4 million or 1.4% to $170.4 million, as compared to $168.0 million for the same period in 2014. The increase was mainly attributable to: (i) the increase in revenue following the delivery of the Navios La Paix and the Navios Sun in January 2014, the YM Utmost and the YM Unity in the second half of 2014 and the delivery of the MSC Cristina in April 2015; (ii) the increase in TCE to $20,267 for the nine month period ended September 30, 2015, from $20,277 for the nine month period ended September 30, 2014. As a result of the vessel acquisitions, available days of the fleet increased to 8,199 days for the nine month period ended September 30, 2015, as compared to 8,072 days for the same period in 2014.
EBITDA for the first nine months of 2014 was positively affected by the accounting effect of $47.6 million income from the insurance settlement. Excluding this item, Adjusted EBITDA increased by $4.4 million to $117.5 million for the nine month period ended September 30, 2015, as compared to $113.1 million for the same period in 2014. The increase in Adjusted EBITDA was due to: (i) a $2.4 million increase in revenue; (ii) a $5.8 million decrease in time charter and voyage expenses; (iii) a $1.2 million increase in other income; and (iv) a $0.2 million decrease in other expenses. The above increase was partially mitigated by a $5.2 million increase in management fees due to the increased number of vessels.
The reserve for estimated maintenance and replacement capital expenditures for the nine month periods ended September 30, 2015 and 2014 was $10.2 million and $17.8 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, 2015 of $87.6 million, as compared to $123.8 million for the nine month period ended September 30, 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 nine months of 2014 was: (i) positively affected by the accounting effect of $47.6 million income from the insurance settlement; and (ii) negatively impacted by a $22.0 million loss from the non-cash accelerated amortization of an intangible asset relating to one Capesize vessel. Excluding these items, Adjusted Net income for the nine months ended September 30, 2015 amounted to $34.0 million compared to $35.8 million for the nine months ended September 30, 2014. The decrease in Adjusted Net income by $1.8 million was due to a $2.8 million increase in interest expense and finance cost, net, a $2.2 million increase in direct vessel expenses and a $1.1 million increase in depreciation and amortization expense. The above decrease was partially mitigated by a $4.4 million increase in Adjusted EBITDA.
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three and nine month periods ended September 30, 2015 and 2014.
Navios Partners' management will host a conference call today, Tuesday, November 3, 2015 to discuss the results for the third quarter and nine months ended September 30, 2015.
Call Date/Time: Tuesday, November 3, 2015 at 8:30 am ET
Call Title: Navios Partners Q3 2015 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 5665 6629
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: 5665 6629
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 container and 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 including Navios Partners' future distributions and its ability to sustain the revised distribution, opportunities to reinvest cash accretively in a fleet renewal program or otherwise 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 this presentation was 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 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 Navios Partners' filings with the Securities and Exchange Commission, including its Form 20-F's and Form 6-K's. 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.
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: 03.11.2015 - 12:32 Uhr
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