--------------
(unaudited)
Three Month
Period Ended
March 31, 2008
($ '000)
--------------
Time charter and voyage revenue $ 14,320
Time charter and voyage expenses (2,821)
Direct vessel expenses (144)
Management fees (1,820)
General and administrative expenses (496)
Depreciation and amortization (2,764)
Interest expense and finance cost, net (2,473)
Interest income 48
Other expense (3)
--------------
Net income $ 3,847
==============
EBITDA $ 9,180
Operating Surplus $ 7,156
==============
For the three month period ended March 31, 2008, Navios Partners' time
charter revenue amounted to $14.3 million whereas time charter expenses for
the same period were $2.8 million. Other expenses including management fees
and general and administrative expenses amounted to $2.3 million.
EBITDA for the three month period ended March 31, 2008 was $9.2 million
(please see Reconciliation of Non-GAAP Financial Measures).
Reserve for estimated maintenance and replacement capital expenditures for
the three month period ended March 31, 2008 was $2.1 million. Maintenance
and replacement capital expenditures represent expenditures required to
maintain, over the long term the operating capacity of Navios Partners'
capital assets.
Navios Partners generated an operating surplus for the period of $7.2
million. 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).
Depreciation and amortization expense for the period (including
amortization of drydocking and special survey costs presented under direct
vessel expenses) was $2.9 million and interest expense and finance cost
related to the facility agreement of $165.0 million was $2.5 million.
Net income for three month period ended March 31, 2008 was $3.8 million.
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
month period ended March 31, 2008.
==============
Three Month
Period Ended
March 31, 2008
==============
(Unaudited)
Available Days (1) 635
Operating Days (2) 635
Fleet Utilization (3) 100.0%
Time Charter Equivalent (per day) $ 22,565
(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:
As announced, today, at 8:30 am EDT, the Company's management will host a
conference call to discuss the results. 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." In case of any problems with the above numbers, please dial: US Toll Free Dial In: +1866 223 0615 UK Toll Free Dial In: +0800 694 1503 International Dial In: +44 (0) 1452 586 513 Please quote "NAVIOS MLP." A telephonic replay of the conference call will be available until April 29, 2008 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, and then archived 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. ABOUT NAVIOS MARITIME PARTNERS L.P. Navios Maritime Partners L.P. (
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of US Dollars)
December 31, March 31,
2007 2008
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,095 $ 10,363
Restricted cash 797 3,136
Accounts receivable, net 381 528
Prepaid expenses and other current assets 39 46
------------ ------------
Total current assets 11,312 14,073
------------ ------------
Vessels, net 135,976 134,012
Deferred financing costs, net 1,811 1,762
Deferred dry dock and special survey costs, net 1,171 1,027
Favorable lease terms 54,784 53,484
------------ ------------
Total non-current assets 193,742 190,285
------------ ------------
Total assets $ 205,054 $ 204,358
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 570 $ 247
Accrued expenses 1,431 3,816
Deferred voyage revenue 153 698
Amounts due to related parties 4,458 1,044
------------ ------------
Total current liabilities 6,612 5,805
------------ ------------
Long term debt, net of current portion 165,000 165,000
Unfavorable lease terms 6,656 6,156
------------ ------------
Total non-current liabilities 171,656 171,156
------------ ------------
Total liabilities 178,268 176,961
------------ ------------
Commitments and contingencies -- --
------------ ------------
Partners' Capital:
Common Unitholders (10,500,000 units issued
and outstanding at December 31, 2007 and
March 31, 2008) 194,265 196,103
Subordinated Unitholders (7,621,843 units
issued and outstanding at December 31, 2007
and March 31, 2008) (159,759) (160,998)
General Partner (369,834 units issued and
outstanding at December 31, 2007 and March
31, 2008) (7,720) (7,708)
------------ ------------
Total partners' capital 26,786 27,397
------------ ------------
Total liabilities and partners' capital $ 205,054 $ 204,358
============ ============
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of US Dollars except unit and per unit amounts)
Three Month Three Month
Period Ended Period Ended
March 31, 2007 March 31, 2008
-------------- --------------
(unaudited) (unaudited)
Time charter and voyage revenue $ 10,516 $ 14,320
Time charter and voyage expenses (1,003) (2,821)
Direct vessel expenses (1,564) (144)
Management fees - (1,820)
General and administrative expenses (244) (496)
Depreciation and amortization (1,991) (2,764)
Interest expense and finance cost, net (1,281) (2,473)
Interest income - 48
Other income 27 -
Other expense (28) (3)
-------------- --------------
Income before income taxes 4,432 3,847
Deferred income tax 224 -
-------------- --------------
Net income $ 4,656 $ 3,847
============== ==============
Earnings per unit:
Three Month Three Month
Period Ended Period Ended
March 31, 2007 March 31, 2008
-------------- --------------
(unaudited) (unaudited)
Net income $ 4,656 $ 3,847
Earnings per unit:
Common unit (basic and diluted) $ - $ 0.35
Subordinated unit (basic and diluted) $ 0.60 $ 0.01
General partner unit (basic and diluted) $ 0.25 $ 0.21
NAVIOS MARITIME PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US Dollars)
Three Month Three Month
period Ended period Ended
March 31, 2007 March 31, 2008
-------------- --------------
(unaudited) (unaudited)
OPERATING ACTIVITIES
Net income $ 4,656 $ 3,847
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,991 2,764
Amortization and write-off of deferred
financing cost 34 49
Amortization of deferred dry dock costs 129 144
Deferred taxation (224) -
Changes in operating assets and
liabilities:
Increase in restricted cash - (2,339)
Decrease (increase) in accounts receivable 22 (147)
Increase in prepaid expenses and other
current assets (414) (7)
Increase (decrease) in accounts payable 24 (323)
Increase in accrued expenses 861 2,385
Increase in deferred voyage revenue 381 545
Decrease in amounts due to related parties (6,776) (3,414)
Payments for dry dock and special survey
costs (3) -
-------------- --------------
Net cash provided by operating activities 681 3,504
-------------- --------------
FINANCING ACTIVITIES:
Cash distribution paid - (3,236)
Debt issuance costs (681) -
-------------- --------------
Net cash provided by (used in) financing
activities (681) (3,236)
-------------- --------------
Increase in cash and cash equivalents - 268
-------------- --------------
Cash and cash equivalents, beginning of
period - 10,095
-------------- --------------
Cash and cash equivalents, end of period $ - $ 10,363
============== ==============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $ 517 $ -
Non-cash investing and financing
activities:
Contributions by Navios Holdings in the
form of fair value adjustments related to
charter-in contracts (Fantastiks in 2007) $ 33,703 $ -
Original
Charter Original
Expiration Charter
Date/ New Out Rate/
Charter New Charter
Capacity Expiration Out Rate
Owned Vessels Type Built (DWT) Date(1) per day(2)
-------- -------- --------- ------------- ----------
Navios Gemini S Panamax 1994 68,636 February 2009 $ 19,523
February 2014 24,225
Navios Libra II Panamax 1995 70,136 December 2010 23,513
Navios Felicity Panamax 1997 73,867 April 2008/ 9,595
April 2013 26,169
Navios Galaxy I Panamax 2001 74,195 February 2018 21,937
Navios Alegria Panamax 2004 76,466 December 2010 23,594
Owned Vessels to be delivered (1)
Expected
delivery
June
Navios TBN I Capesize 2009 180,000 June 2014 47,400
Navios Aurora (2) Panamax 2005 75,397 August 2008 24,063
August 2013 33,863
Long term Chartered-in Vessels
Navios Prosperity Panamax 2007 82,535 July 2012 24,000
Fantastiks (3) Capesize 2005 180,265 March 2011 32,279
March 2014 36,290
Navios Aldebaran Panamax 2008 76,500 March 2013 28,391
(1) Navios Partners has the option to acquire the capital stock of the
subsidiary that will own Capesize vessel TBN II.
(2) Navios Aurora (to be renamed "Navios Aurora 1") is expected to be
acquired from Navios Holdings on July 1, 2008.
(3) Fantastiks is expected to be delivered into the owned fleet in April
2008 and will be renamed "Navios Fantastiks."
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA
EBITDA: EBITDA represents net income before interest, taxes, depreciation
and amortization. Navios Partners uses EBITDA because Navios Partners
believes that EBITDA is a basis upon which liquidity can be assessed and
because 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. 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 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.
Three Month
Period Ended
March 31, 2008
--------------
Net Income 3,847
Adjustments to net income:
Depreciation and amortization 2,908
Interest expense and finance cost 2,473
Interest income (48)
--------------
EBITDA 9,180
Cash interest income 48
Maintenance and replacement capital expenditures (2,072)
--------------
Operating surplus 7,156
Recommended reserves (684)
--------------
Available cash for distribution 6,472
==============
Contact Information: Contacts Public & Investor Relations Contact: Navios Maritime Partners L.P. Nicolas Bornozis Capital Link, Inc. Tel. (212) 661-7566 E-mail: naviospartners@capitallink.com