Three Month Three Month Nine Month Nine Month
Period Period Period Period
ended ended ended ended
September September September September
(in $ '000 except per 30, 2010 30, 2009 30, 2010 30, 2009
unit data) (unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Revenues $ 38,074 $ 23,717 $ 100,742 $ 67,028
EBITDA (1) $ 28,967 $ 16,774 $ 74,900 $ 46,691
Net income $ 16,345 $ 10,789 $ 42,114 $ 23,340
Earnings per Common unit
(basic and diluted) 0.38 0.44 1.13 1.08
Operating Surplus $ 23,716 $ 13,124 $ 75,926 $ 35,106
Maintenance and Replacement
Capital expenditure
reserve $ 3,754 $ 1,957 $ 10,670 $ 5,872
(1) EBITDA for the nine month period ended September 30, 2009 represents
net income before interest, depreciation and amortization and before
non-cash consideration for the release of the obligation to acquire the
Navios Bonavis.
Three month periods ended September 30, 2010 and 2009
Time charter and voyage revenues for the three month period ended September
30, 2010 increased by $14.4 million or 60.8% to $38.1 million, as compared
to $23.7 million for the same period in 2009. The increase was mainly
attributable to the acquisitions of the Navios Apollon on October 29, 2009,
the Navios Hyperion on January 8, 2010, the Navios Aurora II on March 18,
2010 and the Navios Pollux on May 21, 2010. As a result of the vessel
acquisitions, available days of the fleet increased to 1,270 days for the
three month period ended September 30, 2010, as compared to 920 days for
the same period in 2009.
EBITDA increased by $12.2 million to $29.0 million for the three month
period ended September 30, 2010 as compared to $16.8 million for the same
period of 2009. This $12.2 million increase in EBITDA was due to: (a) a
$14.4 million increase in revenue as a result of the acquisitions of the
Navios Apollon in October 2009, the Navios Hyperion in January 2010, the
Navios Aurora II in March 2010 and the Navios Pollux in May 2010; and (b) a
$0.7 million decrease in time charter and voyage expenses as a result of
the exercise of the purchase option of the Navios Sagittarius which became
part of the owned fleet on January 12, 2010. The above increase was
mitigated by a $2.5 million increase in management fees and $0.5 million
increase in general and administrative 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 September 30, 2010 and 2009 was $3.8
million and $2.0 million, respectively. Expansion capital expenditures
reserve for the each of the three month periods ended September 30, 2010
and 2009 was $0 (please see Reconciliation of Non-GAAP Financial Measures
on Exhibit 3).
Navios Partners generated an Operating Surplus for the three month period
ended September 30, 2010 of $23.7 million, in comparison with $13.1 million
for the three month period ended September 30, 2009. 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 September 30, 2010 amounted to $16.3
million compared to $10.8 million for the three months ended September 30,
2009. The increase in net income by $5.5 million was due to: (a) a $12.2
million increase in EBITDA; (b) a $0.2 million increase in interest income;
and (c) a $0.1 million decrease in direct vessel expenses. The overall
increase of $12.5 million was partly offset by a $6.8 million increase in
depreciation and amortization expense due to the acquisition of the Navios
Sagittarius, the Navios Apollon, the Navios Hyperion, the Navios Aurora II
and the Navios Pollux and the favorable lease terms recognized in relation
to these acquisitions and a $0.2 million increase in interest expense.
Nine month periods ended September 30, 2010 and 2009
Time charter and voyage revenues for the nine month period ended September
30, 2010 increased by $33.7 million or 50.3% to $100.7 million as compared
to $67.0 million for the same period in 2009. The increase was mainly
attributable to the acquisition of the rights to the Navios Sagittarius in
June 2009 and the acquisition of the Navios Apollon on October 29, 2009,
the Navios Hyperion on January 8, 2010, the Navios Aurora II on March 18,
2010 and the Navios Pollux on May 21, 2010. As a result of the vessels'
acquisitions, available days of the fleet increased to 3,498 days for the
nine month period ended September 30, 2010, as compared to 2,570 days for
the same period in 2009.
EBITDA increased by $28.2 million to $74.9 million for the nine month
period ended September 30, 2010, as compared to $46.7 million for the same
period of 2009. This $28.2 million increase in EBITDA was due to: (a) a
$33.7 million increase in revenue as a result of the acquisition of the
rights to the Navios Sagittarius in June 2009 and the acquisition of the
Navios Apollon in October 2009, the Navios Hyperion in January 2010, the
Navios Aurora II in March 2010 and the Navios Pollux in May 2010; and (b) a
$1.3 million decrease in time charter and voyage expenses as a result of
the exercise of the purchase option of the Navios Sagittarius which became
part of the owned fleet on January 12, 2010. The above increase was
mitigated by: (a) a $6.2 million increase in management fees as a result of
the increased number of vessels in Navios Partners' fleet; and (b) a $0.7
million increase in general and administrative expenses.
The reserve for estimated maintenance and replacement capital expenditures
for the nine month periods ended September 30, 2010 and 2009 was $10.7
million and $5.9 million, respectively. Expansion capital expenditures
reserve for the nine month periods ended September 30, 2010 and 2009 was
$285.8 million and $34.6 million, respectively (please see Reconciliation
of Non-GAAP Financial Measures on Exhibit 3).
Navios Partners generated an Operating Surplus for the nine month period
ended September 30, 2010 of $75.9 million in comparison with $35.1 million
for the nine month period ended September 30, 2009. 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 nine months ended September 30, 2010 amounted to $42.1
million compared to $23.3 million for the nine months ended September 30,
2009. The increase in net income by $18.8 million was due to: (a) a $28.2
million increase in EBITDA; (b) a $6.1 million non-cash compensation
expense incurred during the nine months ended September 30, 2009; (c) a
$1.4 million decrease in interest expense; (d) a $0.4 million increase in
interest income; and (e) a $0.3 million decrease in direct vessel expenses.
The overall increase of $36.4 million was partly offset by a $17.7 million
increase in depreciation and amortization expense due to the acquisition of
the Navios Sagittarius, the Navios Apollon, the Navios Hyperion, the Navios
Aurora II and the Navios Pollux and the favorable lease terms that were
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
and nine month periods ended September 30, 2010 and 2009.
Three Three
Month Month Nine Month Nine Month
Period Period Period Period
ended ended ended ended
September September September September
30, 30, 30, 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
Available Days (1) 1,270 920 3,498 2,570
Operating Days (2) 1,269 920 3,487 2,569
Fleet Utilization (3) 99.9% 100.0% 99.7% 99.9%
Time Charter Equivalent
(per day) $ 29,978 $ 25,779 $ 28,801 $ 26,081
Vessels operating at period
end 14 10 14 10
(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 to discuss the
results today, Wednesday, October 27, 2010, at 8:30 am EDT.
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 November 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 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 at 7:45 am EDT on the day of the call. About Navios Maritime Partners L.P. Navios Partners (
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
September 30, December 31,
2010 2009
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 45,095 $ 77,878
Restricted cash 824 13,322
Accounts receivable, net 927 602
Prepaid expenses and other current assets 2,452 777
------------- -------------
Total current assets 49,298 92,579
------------- -------------
Vessels, net 487,087 299,695
Deferred financing costs, net 2,154 1,431
Other long term assets 279 179
Intangible assets 131,389 40,372
Deposits for vessel acquisitions -- 2,500
------------- -------------
Total non-current assets 620,909 344,177
------------- -------------
Total assets $ 670,207 $ 436,756
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 879 $ 518
Accrued expenses 2,236 1,844
Deferred voyage revenue 8,680 9,025
Amounts due to related parties 2,948 1,964
------------- -------------
Total current liabilities 14,743 13,351
------------- -------------
Long-term debt 271,500 195,000
Unfavorable lease terms 1,165 2,662
Deferred voyage revenue 12,682 17,753
------------- -------------
Total non-current liabilities 285,347 215,415
------------- -------------
Total liabilities 300,090 228,766
------------- -------------
Commitments and contingencies -- --
Partners' capital:
Common Unitholders (34,666,034 and
24,291,815 units issued and outstanding
at September 30, 2010 and December 31,
2009, respectively) 532,557 369,747
Subordinated Unitholders (7,621,843 units
issued and outstanding at September 30,
2010 and December 31, 2009) (167,809) (164,004)
General Partner (883,428 and 671,708 units
issued and outstanding at September 30,
2010 and December 31, 2009, respectively) (713) (3,835)
Subordinated Series A Unitholders
(1,000,000 units issued and outstanding
at September 30, 2010 and December 31,
2009) 6,082 6,082
------------- -------------
Total partners' capital 370,117 207,990
------------- -------------
Total liabilities and partners' capital $ 670,207 $ 436,756
============= =============
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. Dollars except unit and per unit amounts)
Three Month Three Month Nine Month Nine Month
Period Period Period Period
ended ended ended ended
September September September September
30, 30, 30, 30,
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Time charter and voyage
revenues $ 38,074 $ 23,717 $ 100,742 $ 67,028
Time charter and voyage
expenses (2,986) (3,729) (8,808) (10,088)
Direct vessel expenses (18) (117) (75) (365)
Management fees (5,170) (2,668) (14,064) (7,917)
General and
administrative
expenses (966) (542) (2,973) (2,341)
Depreciation and
amortization (10,966) (4,195) (28,675) (10,973)
Interest expense and
finance cost, net (1,862) (1,698) (4,566) (6,045)
Interest income 224 25 530 114
Compensation expense - - - (6,082)
Other income 27 79 85 92
Other expense (12) (83) (82) (83)
----------- ----------- ----------- -----------
Net income $ 16,345 $ 10,789 $ 42,114 $ 23,340
=========== =========== =========== ===========
Earnings per unit:
Three Month Three Month Nine Month Nine Month
Period ended Period ended Period ended Period ended
September September September September
30, 30, 30, 30,
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ------------ ------------
Net income $ 16,345 $ 10,789 $ 42,114 $ 23,340
Earnings attributable
to:
Common unit holders 13,125 7,644 35,581 16,776
Subordinated unit
holders 2,886 2,923 5,684 6,061
General partner unit
holders 334 222 849 503
Subordinated Series
A unit holders -- -- -- --
Weighted average units
outstanding (basic and
diluted)
Common unit holders 34,666,034 17,374,893 31,428,339 15,585,261
Subordinated unit
holders 7,621,843 7,621,843 7,621,843 7,621,843
General partner unit
holders 883,428 530,546 817,352 480,641
Subordinated Series
A unit holders 1,000,000 1,000,000 1,000,000 1,000,000
Earnings per unit-
overall (basic and
diluted):
Common unit holders $ 0.38 $ 0.44 $ 1.13 $ 1.08
Subordinated unit
holders $ 0.38 $ 0.38 $ 0.75 $ 0.80
General partner unit
holders $ 0.38 $ 0.42 $ 1.04 $ 1.05
Subordinated Series
A unit holders $ -- $ -- $ -- $ --
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Nine Month Nine Month
period Ended Period Ended
September 30, September 30,
2010 2009
------------- -------------
(unaudited) (unaudited)
OPERATING ACTIVITIES
Net income $ 42,114 $ 23,340
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 28,675 10,973
Amortization and write-off of deferred
financing cost 302 190
Amortization of deferred dry dock costs 75 365
Compensation expense -- 6,082
Changes in operating assets and liabilities:
Increase in restricted cash (2) (821)
(Increase)/decrease in accounts receivable (325) 80
(Increase)/decrease in prepaid expenses and
other current assets (1,675) 108
Increase in other long term assets (175) --
Increase in accounts payable 361 50
Increase in accrued expenses 392 656
(Decrease)/increase in deferred voyage
revenue (5,416) 24,996
Increase in amounts due to related parties 984 3,580
------------- -------------
Net cash provided by operating activities 65,310 69,599
------------- -------------
INVESTING ACTIVITIES:
Acquisition of vessels (174,591) --
Acquisition of intangibles (111,165) (34,600)
------------- -------------
Net cash used in investing activities (285,756) (34,600)
------------- -------------
FINANCING ACTIVITIES:
Cash distributions paid (51,338) (27,461)
Proceeds from issuance of general partner
units 3,566 1,642
Proceeds from issuance of common units, net
of offering costs 147,460 66,033
Proceeds from long term debt 89,000 --
Decrease/(increase) in restricted cash 12,500 (10,000)
Repayment of long-term debt and payment of
principal (12,500) (40,000)
Debt issuance costs (1,025) (200)
------------- -------------
Net cash provided by/(used in) financing
activities 187,663 (9,986)
------------- -------------
(Decrease)/Increase in cash and cash
equivalents (32,783) 25,013
------------- -------------
Cash and cash equivalents, beginning of
period 77,878 28,374
------------- -------------
Cash and cash equivalents, end of period $ 45,095 $ 53,387
============= =============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $ 4,141 $ 6,020
Issuance of units in connection with the
non-cash compensation expense related to the
relief of the obligation on Navios Bonavis -- $ 6,082
Issuance of common units to Navios Holdings
related to the acquisition of Navios Aurora
II in March 2010 $ 20,325 $ --
============= =============
EXHIBIT 2
Original
Charter Original
Expiration Charter Out
Date/ Rate/New
New Charter Charter Out
Capacity Expiration Rate per day
Owned Vessels Type Built (DWT) Date(1) (2)
Navios Gemini S Panamax 1994 68,636 February 2014 $ 24,225
Navios Libra II Panamax 1995 70,136 November 2010 $ 23,513
November 2012 $ 18,525
Navios Felicity Panamax 1997 73,867 June 2013 $ 26,169
Navios Galaxy I Panamax 2001 74,195 February 2018 $ 21,937
Navios Alegria Panamax 2004 76,466 December 2010 $ 23,750
January 2014 $ 16,984 (3)
Navios
Fantastiks Capesize 2005 180,265 March 2011 $ 32,279
February 2014 $ 36,290
Navios Hope Panamax 2005 75,397 August 2013 $ 17,562
Ultra-Ha-
Navios Apollon ndymax 2000 52,073 November 2012 $ 23,700
Navios
Sagittarius Panamax 2006 75,756 November 2018 $ 26,125
Navios Hyperion Panamax 2004 75,707 April 2014 $ 37,953
Navios Aurora II Capesize 2009 169,031 November 2019 $ 41,325
Navios Pollux Capesize 2009 180,727 July 2019 $ 42,250
Long-term Chartered-in Vessels
Navios Prosperity Panamax 2007 82,535 July 2012 $ 24,000
(4)
Navios Aldebaran Panamax 2008 76,500 March 2013 $ 28,391
(5)
(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) 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.
(5) 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.
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:
-- 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 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
(unaudited) (unaudited) (unaudited) (unaudited)
Three Month Three Month Nine Month Nine Month
Period ended Period ended Period ended Period ended
September September September September
30, 2010 30, 2009 30, 2010 30, 2009
($ '000) ($ '000) ($ '000) ($ '000)
----------- ----------- ----------- -----------
Net Cash from Operating
Activities $ 14,884 $ 12,635 $ 65,310 $ 69,599
Net increase/(decrease)
in operating assets (127) (177) 2,177 633
Net (increase)/decrease
in operating
liabilities 12,671 2,706 3,679 (29,282)
Net interest cost 1,638 1,673 4,036 5,931
Deferred finance
charges (99) (63) (302) (190)
----------- ----------- ----------- -----------
Adjusted EBITDA 28,967 16,774 74,900 46,691
Cash interest income 243 25 512 114
Cash interest paid (1,740) (1,718) (4,141) (6,020)
Expansion capital
expenditures -- -- (285,756) (34,600)
Equity Issuance -- 32,882 151,026 67,675
Borrowings to fund
expansion capital
expenditures -- -- 87,975 --
Release of expansion
capital expenditures
reserve -- (32,882) 62,080 (32,882)
Maintenance and
replacement capital
expenditures (3,754) (1,957) (10,670) (5,872)
----------- ----------- ----------- -----------
Operating Surplus 23,716 13,124 75,926 35,106
Cash distribution paid
relating to the first
half -- -- (36,251) (18,787)
Recommended reserves
accumulated as of
beginning of January 1 4,459 2,126 4,459 2,126
Reserves accumulated
during the first half
distributed in the
third quarter 15,959 3,195 - -
Recommended reserves
held as of quarter end (23,156) (6,890) (23,156) (6,890)
----------- ----------- ----------- -----------
Available cash for
distribution $ 20,978 $ 11,555 $ 20,978 $ 11,555
=========== =========== =========== ===========
(1) EBITDA for the nine month period ended September 30, 2009 represents
net income before interest, depreciation and amortization and before
non-cash consideration for the release of the obligation to acquire the
Navios Bonavis.
Contact Information: Contacts Public Relations: Navios Maritime Partners L.P. Investor Relations Nicolas Bornozis Capital Link, Inc. Tel. (212) 661-7566 E-mail: naviospartners@capitallink.com