Navios Maritime Midstream Partners L.P. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2015

• Net Income: $9.1 million in Q4; $27.1 million for FY
  
• Earnings per Common Unit: $0.44 in Q4; $1.33 for FY
• EBITDA: $19.4 million in Q4; $62.2 million for FY
• Operating Surplus: $12.9 million in Q4; $42.4 million for FY
• Profit sharing: $3.5 million in Q4; $8.0 million for FY
• Quarterly Cash Distribution of $0.4225 per unit; $1.69 per unit annualized
• 1.48x Total Unit Distribution Coverage for the quarter

MONACO, Jan. 27, 2016 (GLOBE NEWSWIRE) -- Navios Maritime Midstream Partners L.P. (“Navios Midstream”) (NYSE:NAP), an owner and operator of tanker vessels, reported its financial results today for the fourth quarter and year ended December 31, 2015. 

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream stated “We are pleased to report net income of $27.1 million, or $1.33 per share, for 2015. Consequently, we announced a quarterly distribution of $0.4225 per unit, to shareholders of record on February 9, 2016. Our distribution coverage ratio is a healthy 1.48x for the quarter.”

Angeliki Frangou continued, “The collapse of oil prices has introduced significant volatility into the general climate. This price decline, generally good for transportation, has far reaching implications that has adversely affected the investment climate. Yet, Navios Midstream is a solid company and has neither any forward growth capex required nor any debt maturity until 2020. Navios Midstream has 100% of its fleet fixed for 2016 and 2017, with upside through profit sharing, which generated $0.39 net income per unit.”

RECENT DEVELOPMENTS

Quarterly Cash Distribution

The Board of Directors of Navios Midstream declared a cash distribution for the fourth quarter of 2015 of $0.4225 per unit. The cash distribution is payable on February 12, 2016 to unitholders of record as of February 9, 2016.

Profit Share

During the fourth quarter of 2015, Navios Midstream benefited from the VLCC spot market and recognized $3.5 million from its profit sharing arrangements. Profit share recognized for the year ended December 31, 2015, was $8.0 million.

Long – Term Cash Flow

Navios Midstream has entered into long-term charter-out agreements for its vessels, with a remaining average term of 5.3 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Midstream has currently contracted out 100% of its available days for 2016 and 2017, expecting to generate revenues of approximately $89.6 million and $86.6 million, respectively. The average expected daily charter-out rate for the fleet is $40,798 and $39,559 for 2016 and 2017, respectively. 

EARNINGS HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Midstream has compiled consolidated statement of operations for the three months and years ended December 31, 2015 and 2014.  The quarterly information for 2015 and 2014 was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Midstream’s results.

Three month periods ended December 31, 2015 and 2014

Revenue for the three month period ended December 31, 2015 increased by $9.8 million to $25.8 million, as compared to $16.0 million for the same period in 2014. Time Charter Equivalent (“TCE”) was $45,940 for the three month period ended December 31, 2015 and $43,005 for the three month period ended December 31, 2014. The increase was due to the acquisition of the Nave Celeste and the C. Dream in June 2015 and due to profit sharing of $3.5 million recognized in the three month period ended December 31, 2015 in relation to certain charters. 

EBITDA increased by $7.5 million to $19.4 million for the three month period ended December 31, 2015, as compared to $11.9 million for the same period in 2014. The increase in EBITDA was due to a $9.8 million increase in revenue. The above increase was partially mitigated by a: (a) $1.7 million increase in management fees; (b) $0.3 million increase in time charter expenses; (c) $0.2 million increase in general and administrative expenses; and (d) $0.1 million decrease in other income.

The reserve for estimated maintenance and replacement capital expenditures for the three month period ended December 31, 2015 was $3.6 million (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Midstream generated an Operating Surplus for the three month period ended December 31, 2015 of $12.9 million. 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 month period ended December 31, 2015 was $9.1 million compared to $2.6 million for the three month period ended December 31, 2014. The increase in net income was due to a: (i) $7.5 million increase in EBITDA; and (ii) $0.9 million decrease in interest expense and finance cost; partially mitigated by a: (a) $1.5 million increase in depreciation and amortization; and (b) $0.4 million increase in direct vessel expenses.

Earnings per common unit for the three month period ended December 31, 2015 was $0.44.

Year ended December 31, 2015 and 2014
Revenue for the year ended December 31, 2015 increased by $19.8 million to $83.4 million, as compared to $63.5 million for the same period in 2014. Time Charter Equivalent (“TCE”) was $45,924 for year ended December 31, 2015 and $42,995 for year ended December 31, 2014. The increase was due to the acquisition of the Nave Celeste and the C. Dream in June 2015 and due to profit sharing of $8.0 million recognized in the year ended December 31, 2015 in relation to certain charters. 

EBITDA increased by $14.8 million to $62.2 million for the year ended December 31, 2015, as compared to $47.4 million for the same period in 2014. The increase in EBITDA was due to a $19.8 million increase in revenue. The above increase was partially mitigated by a: (a) $3.4 million increase in management fees; (b) $1.2 million increase in general and administrative expenses; (c) $0.3 million increase in time charter expenses; and (d) $0.1 million decrease in other income.

The reserve for estimated maintenance and replacement capital expenditures for the year ended December 31, 2015 was $11.7 million (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Midstream generated an Operating Surplus for the year ended December 31, 2015 of $42.4 million. 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 year ended December 31, 2015 was negatively affected by a $1.7 million write-off of deferred finance cost in association with debt prepayment. Excluding that write-off, Adjusted net income for the year ended December 31, 2015 was $28.8 million compared to $1.2 million for the year ended December 31, 2014. The increase in net income was due to a: (i) $14.8 million increase in EBITDA; and (ii) $16.3 million decrease in interest expense and finance cost; partially mitigated by a: (a) $3.2 million increase in depreciation and amortization; and (b) $0.3 million increase in direct vessel expenses.

Earnings per common unit for the year ended December 31, 2015 was $1.33.

Fleet Employment Profile

The following table reflects certain key indicators of Navios Midstream’s core fleet performance for the three months and years ended December 31, 2015 and 2014

Conference Call details:

Navios Midstream's management will host a conference call today, Wednesday, January 27, 2016 to discuss the results for the fourth quarter and year ended December 31, 2015.

Conference Call details:

Call Date/Time: Wednesday, January 27, 2016 at 08:30 am ET
Call Title: Navios Midstream Q4 2015 Financial Results Conference Call
US Dial In: +1.866.703.4207
International Dial In: +1.636.692.6440
Conference ID: 2743 6001

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: 2743 6001

Slides and audio webcast:
There will also be a live webcast of the conference call, through the Navios Midstream’s website (www.navios-midstream.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 Midstream’s website under the "Investors" section by 8:00 am ET on the day of the call.

About Navios Maritime Midstream Partners L.P.

Navios Maritime Midstream Partners L.P. is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit our website at www.navios-midstream.com.

Forward-Looking Statements

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 expectations, including with respect to Navios Midstream’s future dividends and Navios Midstream's 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 Midstream at the time this report was made. Although Navios Midstream 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 Midstream. 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, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and drydocking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, 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, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Midstream operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Midstream's filings with the Securities and Exchange Commission. Navios Midstream 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 Midstream's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Midstream makes no prediction or statement about the performance of its common units.

EXHIBIT 1
   

EXHIBIT 2

(1)     Navios Midstream has options, exercisable through November 18, 2016, to acquire up to five VLCCs at fair market value from Navios Maritime Acquisition Corporation.

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.

EBITDA is presented because Navios Midstream believes that EBITDA is a basis upon which liquidity can be assessed and present useful information to investors regarding Navios Midstream’s ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. 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.

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. 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 Midstream’s 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.

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 Midstream’s business (including reserve for maintenance and replacement capital expenditures);
  
  
• comply with applicable law, any of Navios Midstream’s 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.

4. Reconciliation of Non-GAAP Financial Measures