Three Month Three Month Six Month Six Month
Period Period Period Period
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
-------- -------- -------- --------
Revenues $ 22,154 $ 17,939 $ 43,311 $ 32,259
EBITDA $ 15,189 $ 12,142 $ 29,917 $ 21,322
Net income $ 3,592 $ 7,155 $ 12,551 $ 11,001
Adjusted Net Income (1) $ 9,674 $ 7,155 $ 18,633 $ 11,001
Earnings per Common unit
(basic and diluted) 0.22 0.39 0.62 0.74
Adjusted Earnings per
common unit (basic and
diluted) (1) 0.41 0.39 0.81 0.74
Operating Surplus $ 11,432 $ 5,909 $ 21,982 $ 13,065
Capital expenditure
reserve $ 1,957 $ 2,338 $ 3,915 $ 4,410
(1) Adjusted for $6.1 million Non-Cash Expense for the release of the
obligation to acquire Navios Bonavis (ex TBN I).
Three month period ended June 30, 2009
Time charter and voyage revenues for the three month period ended June 30,
2009 increased by $4.3 million or 24.0% to $22.2 million as compared to
$17.9 million for the same period in 2008. The increase was mainly
attributable to the acquisition of the Navios Hope on July 1, 2008, which
was operating during the entire three month period ended June 30, 2009 and
the acquisition of the rights to the Navios Sagittarius on June 10, 2009.
EBITDA increased by $3.1 million to $15.2 million for the three month
period ended June 30, 2009 as compared to $12.1 million for the same period
of 2008. This $3.1 million increase in EBITDA was primarily due to a $4.3
million increase in revenue as a result of the increased number of vessels
in Navios Partners' fleet. The above favorable variance of $4.3 million was
mitigated by: (a) a $0.2 million increase in time charter and voyage
expenses; (b) a $0.5 million increase in management fees due to the
increase in the number of vessels; (c) a $0.4 million increase in general
and administrative expenses due to the increase in the number of owned and
chartered-in vessels during the three month period ended June 30, 2009,
compared to the respective period in 2008; and (d) a $0.1 million increase
in net other expense.
The reserve for estimated maintenance and replacement capital expenditures
for the three month period ended June 30, 2009 and 2008 was $2.0 million
and $2.3 million, respectively. Expansion capital expenditures for the
three month period ended June 30, 2009 and 2008 was $34.6 million and $34.2
million, respectively.
Navios Partners generated an Operating Surplus for the three month period
ended June 30, 2009 of $11.4 million in comparison to $5.9 million for the
three month period ended June 30, 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 three months ended June 30, 2009 amounted to $3.6 million
compared to $7.2 million for the three months ended June 30, 2008. The
decrease in net income by $3.6 million was due to (a) a $6.1 million
Non-Cash Expense; and (b) a $1.0 million increase in depreciation and
amortization expense. This decrease was mitigated by (a) a $3.1 million
increase in EBITDA; and (b) a $0.4 million decrease in interest expense.
Six month period ended June 30, 2009
Time charter and voyage revenues for the six month period ended June 30,
2009 increased by $11.0 million or 34.0% to $43.3 million as compared to
$32.3 million for the same period in 2008. The increase was mainly
attributable to the acquisition of the Navios Hope on July 1, 2008, which
was fully operating during the three month period ended June 30, 2009 and
the acquisition of the rights of the Navios Sagittarius on June 10, 2009.
EBITDA increased by $8.6 million to $29.9 million for the six month period
ended June 30, 2009 as compared to $21.3 million for the same period of
2008. This $8.6 million increase in EBITDA was primarily due to the $11.0
million increase in revenue as a result of the increased number of vessels
in Navios Partners' fleet. The above favorable variance of $11.0 million
was mitigated by: (a) a $0.4 million increase in time charter and voyage
expenses; (b) a $1.4 million increase in management fees due to the
increase in the number of vessels; and (c) a $0.8 million increase in
general and administrative expenses due to the increase in the number of
owned and chartered-in vessels during the six month period ended June 30,
2009, compared to the respective period in 2008.
The reserve for estimated maintenance and replacement capital expenditures
for the six month period ended June 30, 2009 and 2008 was $3.9 million and
$4.4 million, respectively. Expansion capital expenditures for the six
month period ended June 30, 2009 and 2008 was $34.6 million and $34.2
million, respectively.
Navios Partners generated an Operating Surplus for the six month period
ended June 30, 2009 of $22.0 million in comparison to $13.1 million for the
six month period ended June 30, 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 six months ended June 30, 2009 amounted to $12.6 million
compared to $11.0 million for the six months ended June 30, 2008. The
increase in net income by $1.6 million was due to (a) $8.6 million increase
in EBITDA; (b) a $0.5 million decrease in interest expense and (c) a $0.1
million net increase other income/expense and interest income. This
increase was mitigated by (a) a $6.1 million Non-Cash Expense; and (b) a
$1.5 million increase in depreciation and amortization 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
and six month periods ended June 30, 2009.
Three Three Six Six
Month Month Month Month
Period Period Period Period
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
Available Days(1) 840 728 1,650 1,363
Operating Days(2) 840 722 1,649 1,356
Fleet Utilization (3) 100% 99.2% 99.9% 99.6%
Time Charter Equivalent (per day) $ 26,373 $ 24,641 $ 26,249 $ 23,674
Vessels operating at period end 10 8 10 8
(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 on Wednesday, July 29, 2009, 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 August 5, 2009 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 EDT on the day of the call. About Navios Maritime Partners L.P. Navios Maritime Partners L.P. (
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
June 30, December 31,
2009 2008
----------- ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 20,481 $ 28,374
Restricted cash 8,321 -
Accounts receivable, net 479 313
Prepaid expenses and other current assets 194 371
----------- ------------
Total current assets 29,475 29,058
----------- ------------
Vessels, net 283,787 291,340
Deferred financing costs, net 1,989 1,915
Deferred dry dock and special survey costs, net 345 594
Intangible assets other than goodwill 34,377 -
----------- ------------
Total non-current assets 320,498 293,849
----------- ------------
Total assets $ 349,973 $ 322,907
=========== ============
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable $ 582 $ 594
Accrued expenses 1,936 1,662
Deferred voyage revenue 8,369 2,606
Amounts due to related parties 6,368 1,539
Current portion of long-term debt - 40,000
----------- ------------
Total current liabilities 17,255 46,401
----------- ------------
Long-term debt 195,000 195,000
Unfavorable lease terms 3,661 4,659
Deferred voyage revenue 21,134 -
----------- ------------
Total non-current liabilities 219,795 199,659
----------- ------------
Total liabilities 237,050 246,060
----------- ------------
Commitments and contingencies - -
Partners' Capital:
Common Unitholders (13,631,415 and 17,131,415
units issued and outstanding at December 31,
2008 and June 30, 2009, respectively) 275,715 243,639
Subordinated Unitholders (7,621,843 units
Issued and outstanding at December 31, 2008
and June 30, 2009) (163,052) (160,092)
General Partner (433,740 and 525,577 units
issued and outstanding at December 31, 2008
and June 30, 2009, respectively) (5,822) (6,700)
Subordinated Series A Unitholders (0 and
1,000,000 units issued and outstanding at
December 31, 2008 and June 30, 2009,
respectively) 6,082 -
----------- ------------
Total partners' capital 112,923 76,847
----------- ------------
Total liabilities and partners' capital $ 349,973 $ 322,907
=========== ============
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 Six Month Six Month
Period ended Period ended Period ended Period ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ------------ ------------
Time charter and voyage
revenues $ 22,154 $ 17,939 $ 43,311 $ 32,259
Time charter and voyage
expenses (3,351) (3,183) (6,359) (6,004)
Direct vessel expenses (124) (145) (248) (289)
Management fees (2,639) (2,119) (5,249) (3,939)
General and
administrative
expenses (897) (507) (1,799) (1,003)
Depreciation and
amortization (3,501) (2,547) (6,778) (5,311)
Interest expense and
finance cost, net (1,922) (2,339) (4,347) (4,812)
Interest income 32 43 89 91
Compensation expense (6,082) - (6,082) -
Other income - 24 13 23
Other expense (78) (11) - (14)
------------ ------------ ------------ ------------
Net income $ 3,592 $ 7,155 $ 12,551 11,001
============ ============ ============ ============
Earnings per unit:
Three Month Three Month Six Month Six Month
Period ended Period ended Period ended Period ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ------------ ------------
Net income $ 3,592 $ 7,155 $ 12,551 $ 11,001
Earnings per unit:
Common unit (basic and
diluted) $ 0.22 $ 0.39 $ 0.62 $ 0.74
Subordinated unit
(basic and diluted) $ - $ 0.39 $ 0.41 $ 0.40
General partner unit
(basic and diluted) $ 0.15 $ 0.39 $ 0.62 $ 0.60
Subordinated Series A
Unitholders (basic and
diluted) $ - $ - $ - $ -
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Six Month Six Month
period Ended period Ended
June 30, 2009 June 30, 2008
------------- -------------
(unaudited) (unaudited)
OPERATING ACTIVITIES
Net income $ 12,551 $ 11,001
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 6,778 5,311
Amortization and write-off of deferred
financing cost 127 101
Amortization of deferred dry dock costs 248 289
Compensation expense (1) 6,082 -
Changes in operating assets and liabilities:
(Increase)/decrease in restricted cash (821) 151
Increase in accounts receivable (166) (356)
(Increase)/ decrease in prepaid expenses and
other current assets 177 (57)
Increase/(decrease) in accounts payable (12) 461
Increase/(decrease) in accrued expenses 274 (123)
Increase in deferred voyage revenue 26,897 777
Increase/ (decrease) in amounts due to
related parties 4,829 (3,654)
------------- -------------
Net cash provided by operating activities 56,964 13,901
------------- -------------
INVESTING ACTIVITIES:
Acquisition of vessels - (34,460)
Acquisition of contracts (34,600) -
Increase in long term assets - (46)
------------- -------------
Net cash used in investing activities (34,600) (34,506)
------------- -------------
FINANCING ACTIVITIES:
Cash distribution paid (17,350) (9,708)
Proceeds from issuance of general partners
units 944 -
Proceeds from issuance of common units 33,849
Proceeds from long term loan - 35,000
Increase in restricted cash (7,500) -
Repayment of long-term debt and payment of
principal (40,000) -
Debt issuance costs (200) -
------------- -------------
Net cash (used in)/provided by financing
activities (30,257) 25,292
------------- -------------
Increase/ (decrease) in cash and cash
equivalents (7,893) 4,687
------------- -------------
Cash and cash equivalents, beginning of
period 28,374 10,095
------------- -------------
Cash and cash equivalents, end of period $ 20,481 $ 14,782
------------- -------------
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ 4,302 $ 4,783
============= =============
Non-cash operating activities
Issuance of units in connection with the Non-Cash Compensation Expense (1)
EXHIBIT 2
Original
Charter Original
Expiration Charter Out
Date / New Rate / New
Charter Charter Out
Capacity Expiration Rate per
Owned Vessels Type Built (DWT) Date (1) day (2)
Navios Gemini S Panamax 1994 68,636 February 2014 $ 24,225
Navios Libra II Panamax 1995 70,136 December 2010 $ 23,513
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
Navios Fantastiks Capesize 2005 180,265 March 2011 $ 32,279
February 2014 $ 36,290
Navios Hope (3) Panamax 2005 75,397 May 18, 2010 $ 10,643
September 2013 $ 16,841
Long-term Chartered-in Vessels
Navios Prosperity (4) Panamax 2007 82,535 July 2012 $ 24,000
Navios Aldebaran (5) Panamax 2008 76,500 March 2013 $ 28,391
Navios Sagittarius (6) Panamax 2006 75,756 November 2018 $ 26,125
(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) Navios Partners received a lump sum charter payment of approximately
$29.6 million for Navios Hope in the first quarter of 2009. This charter
payment was net of expenses and represents an acceleration of a significant
portion of the $56.2 million nominal charter amount. Navios Partners will
receive the entire amount of the original charter through the lump sum
payment and the new charter payments for the remainder of the term of the
original charter (ending in 2013). The rate for the period from April, 1
2009 to August 2013 is as presented in the table above. On February 9,
2009, Navios Aurora I was renamed to the Navios Hope.
(4) 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 ($39.8 million based upon the exchange
rate at June 30, 2009), declining pro rata by 145 million Yen ($1.5 million
based upon the exchange rate at June 30, 2009) per calendar year.
(5) 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 ($37.7 million based upon
the exchange rate at June 30, 2009) declining pro rata by 150 million Yen
($1.6 million based upon the exchange rate at June 30, 2009) per calendar
year.
(6) On June 10, 2009 Navios Partners purchased from Navios Maritime
Holdings Inc. the rights to the Navios Sagittarius, a 2006 Japanese-built
Panamax vessel with a capacity of 75,756 dwt, for a $34.6 million in cash.
The Navios Sagittarius is a chartered-in-vessel, and Navios Partners has an
option to purchase the vessel, beginning December 2009, at a purchase price
that is initially 2.5 billion Japanese Yen ($26.2 million based on the
exchange rate at June 30, 2009), declining each year by 120.0 million
Japanese Yen ($1.3 million based on the exchange rate at June 30, 2009).
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA
EBITDA represents net income before interest, depreciation and amortization
and before non-cash consideration for the release of the obligation to
acquire Navios Bonavis (ex TBN I). Navios Partners uses EBITDA because
Navios Partners believes that EBITDA is a basis upon which liquidity can be
assessed and EBITDA presents useful information to investors regarding
Navios Partners' ability to service and/or incur indebtedness. Navios
Partners also uses EBITDA (i) in its credit agreement to measure compliance
with covenants such as interest coverage and debt incurrence; (ii) by
prospective and current lessors as well as potential lenders to evaluate
potential transactions; and (iii) to evaluate and price potential
acquisition candidates.
EBITDA has limitations as an analytical tool, and should not be considered
in isolation or as a substitute for analysis of Navios Partners' results as
reported under US GAAP. Some of these limitations are: (i) EBITDA does not
reflect changes in, or cash requirements for, working capital needs; and
(ii) although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and EBITDA does not reflect any cash requirements for such capital
expenditures. Because of these limitations, EBITDA should not be considered
as a principal indicator of Navios Partners' performance.
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 our 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 Six Month Six Month
Period ended Period ended Period ended Period ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
($ '000) ($ '000) ($ '000) ($ '000)
----------- ----------- ----------- -----------
Net Cash from Operating
Activities $ 13,916 $ 10,397 $ 56,964 $ 13,901
Net increase/(decrease)
in operating assets (215) (2,231) 810 262
Net increase/(decrease)
in operating
liabilities (337) 1,732 (31,988) 2,539
Net interest cost 1,890 2,296 4,258 4,721
Deferred finance
charges (65) (52) (127) (101)
----------- ----------- ----------- -----------
EBITDA 15,189 12,142 29,917 21,322
Cash interest income 32 43 89 91
Cash interest paid (2,025) (4,783) (4,302) (4,783)
Expansion capital
expenditures (34,600) (34,155) (34,600) (34,155)
Equity Issuance 34,793 - 34,793 -
Borrowings to fund
expansion capital
expenditures - 35,000 - 35,000
Maintenance and
replacement capital
expenditures (1,957) (2,338) (3,915) (4,410)
----------- ----------- ----------- -----------
Operating Surplus 11,432 5,909 21,982 13,065
Cash distribution paid
relating to the first
quarter - - (8,675) (6,472)
Recommended reserves
accumulated as of
beginning of January 1 2,127 18 2,127 18
Reserves accumulated
during the first
quarter distributed in
the second quarter 1,875 684 - -
Recommended reserves
held as of quarter end (5,322) (117) (5,322) (117)
----------- ----------- ----------- -----------
Available cash for
distribution $ 10,112 $ 6,494 $ 10,112 $ 6,494
=========== =========== =========== ===========
Contact Information: 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