PIRAEUS, GREECE--(Marketwire -01/26/12)- Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM - News)
- Cash distribution of $0.44 per unit for Q4 2011
- 18.8% increase in quarterly Revenue to $50.5 million
- 15.5% increase in quarterly Operating Surplus to $31.3 million
- 19.9% increase in quarterly EBITDA to $38.6 million
Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM - News), an owner and operator of dry cargo vessels, today reported its financial results for the fourth quarter and the year ended December 31, 2011.
Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "We are pleased with the results of the fourth quarter and full year 2011. We declared a distribution of $0.44 per unit for the fourth quarter, representing an annualized distribution of $1.76 and a current yield of almost 11%."
Ms. Frangou continued, "We built a vibrant MLP, with a strong group of assets generating healthy cash flow. During this past year, we reinforced our operating stability by locking in technical and commercial management services for an additional five years and making accretive acquisitions. We have increased our distributions in the aggregate by 25.7% since our IPO in 2007 and look forward to further growing our cash flows and distributions."
RECENT DEVELOPMENTS
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the fourth quarter of 2011 of $0.44 per unit. The cash distribution is payable on February 14, 2012 to unitholders of record on February 9, 2012.
Navios Apollon Charter Party
Navios Partners has entered into a new charter with a subsidiary of Navios Maritime Holdings Inc. for the Navios Apollon. The term of this charter is approximately two years commencing upon completion of the current charter, at a daily rate of $12,500 net per day for the first year and $13,500 net per day for the second year, plus 50/50 profit sharing based on actual earnings.
Long-Term and Insured Cash Flow
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of approximately four years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 96.6% of its available days for 2012, 79.3% for 2013 and 45.0% for 2014, generating revenues of approximately $192.6 million, $159.3 million and $99.7 million, respectively. The average contractual daily charter-out rate for the fleet is $30,270, $30,597 and $33,744 for 2012, 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels is $13,513 for 2012.
Navios Partners' charter-out contracts are insured for credit default by an AA rated European Union governmental agency.
FINANCIAL HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three month periods and for the years ended December 31, 2011 and 2010. The quarterly and year ended 2011 and 2010 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net income, Adjusted Earnings per Common Unit and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results.
Three Month Three Month
Period ended Period ended Year ended Year ended
(in $ '000 December 31, December 31, December 31, December 31,
except per unit 2011 2010 2011 2010
data) (unaudited) (unaudited) (unaudited) (unaudited)
Revenue $ 50,464 $ 42,489 $ 186,953 $ 143,231
Net income $ 18,661 $ 18,397 $ 65,335 $ 60,511
Adjusted Net
income (1) $ 18,661 $ 18,397 $ 69,314 $ 60,511
EBITDA $ 38,588 $ 32,220 $ 137,790 $ 107,120
Adjusted EBITDA
(1) $ 38,588 $ 32,220 $ 141,769 $ 107,120
Earnings per
Common unit $ 0.35 $ 0.38 $ 1.33 $ 1.51
Adjusted
Earnings per
Common unit(1) $ 0.35 $ 0.38 $ 1.40 $ 1.51
Operating
Surplus $ 31,332 $ 27,050 $ 115,870 $ 87,731
Maintenance and
Replacement
Capital
expenditure
reserve $ 4,828 $ 4,000 $ 18,569 $ 14,669
(1) Adjusted Net income, Adjusted EBITDA and Adjusted Earnings per Common Unit (basic and diluted) for the year ended December 31, 2011, exclude a $4.0 million non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract.
Three month periods ended December 31, 2011 and 2010
Time charter revenues for the three month period ended December 31, 2011 increased by $8.0 million or 18.8% to $50.5 million, as compared to $42.5 million for the same period in 2010. The increase was mainly attributable to the acquisitions of the Navios Melodia and the Navios Fulvia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. As a result of the vessel acquisitions, available days of the fleet increased to 1,647 days for the three month period ended December 31, 2011, as compared to 1,381 days for the three month period ended December 31, 2010. The increase in revenue was partially offset by the decrease of $0.5 million incurred due to scheduled and unscheduled off hires. The time charter equivalent ("TCE") decreased to $30,646 for the three month period ended December 31, 2011, from $30,767 for the three month period ended December 31, 2010.
EBITDA increased by $6.4 million to $38.6 million for the three month period ended December 31, 2011, as compared to $32.2 million for the same period of 2010. The increase in EBITDA was due to an $8.0 million increase in revenue following the acquisitions of the Navios Melodia and the Navios Fulvia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. The above increase was partially offset by a $1.0 million increase in management fees, a $0.6 million increase in time charter 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 December 31, 2011 and 2010 was $4.8 million and $4.0 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 December 31, 2011 of $31.3 million, as compared to $27.1 million for the three month period ended December 31, 2010. 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 December 31, 2011 amounted to $18.7 million compared to $18.4 million for the three months ended December 31, 2010. The increase in net income by $0.3 million was due to a $6.4 million increase in EBITDA partially offset by:(i) a $0.4 million decrease in interest income; (ii) a $1.0 million increase in interest expense and finance cost, net; and (iii) a $4.7 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter and the Navios Luz and the favorable lease terms recognized in relation to these acquisitions.
Years ended December 31, 2011 and 2010
Time charter revenues for the year ended December 31, 2011 increased by $43.8 million or 30.6% to $187.0 million, as compared to $143.2 million for the same period in 2010. The increase was mainly attributable to the acquisition of the Navios Hyperion on January 8, 2010, the Navios Sagittarius on January 12, 2010, the Navios Aurora II on March 18, 2010, the Navios Pollux on May 21, 2010, the Navios Fulvia and the Navios Melodia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. As a result of these vessel acquisitions, available days of the fleet increased to 6,251 days for the year ended December 31, 2011, as compared to 4,879 days for the year ended December 31, 2010. The increase in revenue was partially offset by the decrease of $7.5 million incurred due to unscheduled off hires. The time charter equivalent ("TCE") increased to $29,909 for the year ended December 31, 2011, from $29,358 for the year ended December 31, 2010.
Adjusted EBITDA increased by $34.7 million to $141.8 million for the year ended December 31, 2011, as compared to $107.1 million for the same period of 2010. The increase in Adjusted EBITDA was due to a $43.8 million increase in revenue following the acquisitions of the Navios Hyperion and the Navios Sagittarius in January 2010, the Navios Aurora II in March 2010, the Navios Pollux in May 2010, the Navios Melodia and the Navios Fulvia in November 2010 and the Navios Luz and the Navios Orbiter in May 2011. The above increase was partially offset by a $6.6 million increase in management fees, a $1.4 million increase in time charter expenses and a $1.1 million increase in administrative and other income/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 year ended December 31, 2011 and 2010 was $18.6 million and $14.7 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Partners generated an Operating Surplus for the year ended December 31, 2011 of $115.9 million, as compared to $87.7 million for the year ended December 31, 2010. 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, 2011 amounted to $65.3 million which was negatively impacted by a $4.0 million non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract. Excluding this write-off, Adjusted net income for the year ended December 31, 2011 amounted to $69.3 million compared to $60.5 million for the year ended December 31, 2010. The increase in net income by $8.8 million was due to a $34.7 million increase in Adjusted EBITDA partially offset by: (i) a $2.9 million increase in interest expense and finance cost, net; (ii) a $0.2 million decrease in interest income; and (iii) a $22.8 million increase in depreciation and amortization expense due to the acquisitions of the Navios Sagittarius, the Navios Hyperion, the Navios Aurora II, the Navios Pollux, the Navios Melodia, the Navios Fulvia, the Navios Orbiter and the Navios Luz and the favorable lease terms recognized in relation to these acquisitions.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three month period and the year ended December 31, 2011 and 2010.
Three Month Three Month
Period ended Period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
(unaudited) (unaudited) (unaudited) (unaudited)
-------------- -------------- -------------- --------------
Available
Days (1) 1,647 1,381 6,251 4,879
Operating
Days (2) 1,633 1,378 5,950 4,865
Fleet
Utilization
(3) 99.2% 99.8% 95.2% 99.7%
Time Charter
Equivalent
(per day)
(4) $ 30,646 $ 30,767 $ 29,909 $ 29,358
Vessels
operating at
period end 18 16 18 16
(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 scheduled 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 and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, drydockings or special surveys.
(4) Time Charters Equivalents ("TCE") rates are defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE rate is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet.
Conference Call details:
Navios Partners' management will host a conference call today, Thursday, January 26, 2012 to discuss the results for the fourth quarter and year ended December 31, 2011.
Conference Call details:
Call Date/Time: Thursday, January 26, 2012 at 08:30 am ET
Call Title: Navios Partners Q4 and FY 2011 Financial Results Conference Call
US Dial In: +1.866.394.0817
International Dial In: +1.706.679.9759
Conference ID: 4053 9490
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: 4053 9490
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 by 7:45 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Partners (NYSE: NMM - News) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit our website at www.navios-mlp.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 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. Although the 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 changes in the demand for dry bulk vessels, 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 the Navios Partners' filings with the Securities and Exchange Commission. 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.
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
December 31, December 31,
2011 2010
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 48,078 $ 51,278
Restricted cash 8,468 824
Accounts receivable, net 4,835 936
Prepaid expenses and other current assets 2,177 2,574
------------- -------------
Total current assets 63,558 55,612
------------- -------------
Vessels, net 667,213 612,358
Deferred financing costs, net 2,466 2,582
Other long term assets 106 242
Intangible assets 176,581 170,091
------------- -------------
Total non-current assets 846,366 785,273
------------- -------------
Total assets $ 909,924 $ 840,885
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 2,022 $ 1,076
Accrued expenses 2,986 1,941
Deferred voyage revenue 10,920 10,575
Current portion of long-term debt 36,700 29,200
Amounts due to related parties 4,077 2,633
------------- -------------
Total current liabilities 56,705 45,425
------------- -------------
Long-term debt 289,350 292,300
Unfavorable lease terms -- 665
Deferred voyage revenue 4,230 10,992
------------- -------------
Total non-current liabilities 293,580 303,957
------------- -------------
Total liabilities 350,285 349,382
============= =============
Commitments and contingencies -- --
Partners' capital:
Common Unitholders (46,887,320 and 41,779,404
units issued and outstanding at December 31,
2011 and December 31, 2010, respectively) 729,550 651,965
Subordinated Unitholders (7,621,843 units
issued and outstanding at December 31, 2011
and December 31, 2010) (177,969) (168,229)
General Partner (1,132,843 and 1,028,599 units
issued and outstanding at December 31, 2011
and December 31, 2010, respectively) 1,976 1,685
Subordinated Series A Unitholders (1,000,000
units issued and outstanding at December 31,
2011 and December 31, 2010) 6,082 6,082
------------- -------------
Total Partners' capital 559,639 491,503
------------- -------------
Total liabilities and Partners' capital $ 909,924 $ 840,885
============= =============
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
Period ended Period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
------------- ------------- ------------- -------------
($'000) ($'000) ($'000) ($'000)
(unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Time charter
revenues $ 50,464 $ 42,489 $ 186,953 $ 143,231
Time charter
expenses (3,801) (3,219) (13,473) (12,027)
Direct vessel
expenses (13) (17) (61) (92)
Management fees (6,736) (5,682) (26,343) (19,746)
General and
administrative
expenses (1,387) (1,330) (4,965) (4,303)
Depreciation and
amortization (17,150) (12,499) (63,971) (41,174)
Write-off of
intangible asset -- -- (3,979) --
Interest expense and
finance cost, net (2,830) (1,794) (9,244) (6,360)
Interest income 66 487 821 1,017
Other income 235 -- 272 85
Other expense (187) (38) (675) (120)
------------- ------------- ------------- -------------
Net income $ 18,661 $ 18,397 $ 65,335 $ 60,511
============= ============= ============= =============
Earnings per unit:
Three Month Three Month
Period Period
ended ended Year ended
December December December 31, Year ended
31, 2011 31, 2010 2011 December
(unaudited) (unaudited) (unaudited) 31, 2010
----------- ----------- ------------ -----------
Net income $ 18,661 $ 18,397 $ 65,335 $ 60,511
Earnings attributable to:
Common unit holders 16,411 15,242 60,506 50,823
Subordinated unit holders 1,877 2,781 3,522 8,465
General partner unit
holders 373 374 1,307 1,223
Subordinated Series A
unit holders -- -- -- --
Weighted average units
outstanding (basic and
diluted)
Common unit holders 46,887,320 40,500,038 45,409,807 33,714,905
Subordinated unit holders 7,621,843 7,621,843 7,621,843 7,621,843
General partner unit
holders 1,132,843 1,002,490 1,102,689 864,017
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 $ 0.35 $ 0.38 $ 1.33 $ 1.51
Subordinated unit holders $ 0.25 $ 0.37 $ 0.46 $ 1.11
General partner unit
holders $ 0.33 $ 0.37 $ 1.19 $ 1.42
Subordinated Series A
unit holders $ -- $ -- $ -- $ --
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2011 2010 2009
------------ ------------ ------------
(unaudited)
OPERATING ACTIVITIES
Net income $ 65,335 $ 60,511 $ 34,322
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 63,971 41,174 15,877
Write-off of intangible asset 3,979 -- --
Amortization of deferred financing
cost 530 415 683
Amortization of deferred dry dock
costs 61 92 415
Provision for bad debts -- -- 49
Compensation expense -- -- 6,082
Changes in operating assets and
liabilities:
Increase in restricted cash (2) (2) (822)
Increase in accounts receivable (3,899) (334) (338)
Decrease/(increase) in prepaid
expenses and other current assets 396 (1,797) (406)
Decrease/(increase) in other long
term assets 75 (154) --
Increase/(decrease) in accounts
payable 946 558 (76)
Increase in accrued expenses 1,045 97 182
(Decrease)/increase in deferred
voyage revenue (6,417) (5,211) 24,172
Increase in amounts due to related
parties 1,444 669 425
------------ ------------ ------------
Net cash provided by operating
activities 127,464 96,018 80,565
------------ ------------ ------------
INVESTING ACTIVITIES:
Acquisition of vessels (76,220) (291,591) (23,683)
Acquisition of intangibles (43,780) (156,166) (42,917)
Deposit for vessel acquisitions -- -- (2,500)
------------ ------------ ------------
Net cash used in investing
activities (120,000) (447,757) (69,100)
------------ ------------ ------------
FINANCING ACTIVITIES:
Cash distributions paid (95,499) (72,316) (39,016)
Net proceeds from issuance of
general partner units 2,052 6,150 2,948
Proceeds from issuance of common
units, net of offering costs 86,288 253,871 126,807
Proceeds from long term debt 35,000 139,000 --
(Increase)/decrease in restricted
cash (7,642) 12,500 (12,500)
Repayment of long-term debt and
payment of principal (30,450) (12,500) (40,000)
Debt issuance costs (413) (1,566) (200)
------------ ------------ ------------
Net cash (used in)/provided by
financing activities (10,664) 325,139 38,039
------------ ------------ ------------
(Decrease)/increase in cash and
cash equivalents (3,200) (26,600) 49,504
------------ ------------ ------------
Cash and cash equivalents,
beginning of period 51,278 77,878 28,374
------------ ------------ ------------
Cash and cash equivalents, end of
period $ 48,078 $ 51,278 $ 77,878
============ ============ ============
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ 8,131 $ 5,806 $ 7,590
Issuance of common units to Navios
Holdings related to the
acquisition of Navios Luz and
Navios Orbiter in May 2011 $ 9,960 $ -- $ --
Issuance of common units to Navios
Holdings related to the
acquisition of the Navios Fulvia
and the Navios Melodia in
November 2010 $ -- $ 14,971 $ --
Issuance of common units to Navios
Holdings related to the
acquisition of Navios Aurora II
in March 2010 $ -- $ 20,326 $ --
Issuance of units in connection
with the non-cash compensation
expense related to the relief of
the obligation on Navios Bonavis $ -- $ -- $ 6,082
EXHIBIT 2
Charter
Owned Vessels Type Built Capacity Expiration Charter-Out
(DWT) Date Rate (1)
Ultra-
Navios Apollon(2) Handymax 2000 52,073 March 2012 $ 13,775
March 2013 $ 12,500
March 2014 $ 13,500
Navios Gemini S Panamax 1994 68,636 February 2014 $ 24,225
Navios Libra II Panamax 1995 70,136 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 Hyperion Panamax 2004 75,707 April 2014 $ 37,953
Navios Alegria Panamax 2004 76,466 February 2014 $ 16,984(3)
Navios Orbiter Panamax 2004 76,602 April 2014 $ 38,052
Navios Hope Panamax 2005 75,397 August 2013 $ 17,562
Navios Sagittarius Panamax 2006 75,756 November 2018 $ 26,125
Navios Fantastiks Capesize 2005 180,265 February 2014 $ 36,290
Navios Aurora II Capesize 2009 169,031 November 2019 $ 41,325
Navios Pollux Capesize 2009 180,727 July 2019 $ 42,250
Navios Fulvia Capesize 2010 179,263 September 2015 $ 50,588
Navios Melodia(4) Capesize 2010 179,132 September 2022 $ 29,356(5)
Navios Luz Capesize 2010 179,144 November 2020 $ 29,356(6)
Long-term Chartered-in Vessels
Navios Prosperity (7) Panamax 2007 82,535 July 2012 $ 24,000
Navios Aldebaran (8) Panamax 2008 76,500 March 2013 $ 28,391
(1) 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 new time charter.
(2) New charter for two years at a rate of $12,500 net per day for the first year and $13,500 net per day for the second year plus 50/50 profit sharing based on actual earnings.
(3) Profit sharing 50% above $16,984/ day based on Baltic Exchange Panamax TC Average.
(4) In January 2011, Korea Line Corporation ("KLC") filed for receivership. The charter was affirmed and will be performed by KLC on its original terms, provided that during an interim suspension period the sub-charterer of the Navios Melodia will pay Navios Partners directly.
(5) Profit sharing 50% above $37,500/ day based on Baltic Exchange Capesize TC Average.
(6) Profit sharing 50% above $38,500/ day based on Baltic Exchange Capesize TC Average.
(7) The Navios Prosperity is chartered-in for seven years until June 2014 and we 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.
(8) The Navios Aldebaran is chartered-in for seven years until March 2015 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
EBITDA
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.
Adjusted EBITDA
Adjusted EBITDA represents EBITDA plus the non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract.
EBITDA and Adjusted EBITDA are presented because Navios Partners believes that EBITDA is 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.
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 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
Three Month Three Month
Period ended Period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
($ '000) ($ '000) ($ '000) ($ '000)
(unaudited) (unaudited) (unaudited) (unaudited)
-------------- --------------- -------------- --------------
Net Cash from
Operating
Activities $ 31,331 $ 30,708 $ 127,464 $ 96,018
Net
(decrease)/
increase in
operating
assets (1,005) 110 3,430 2,287
Net decrease
in operating
liabilities 5,634 208 2,982 3,887
Net interest
cost 2,764 1,307 8,423 5,343
Write-off of
intangible
asset -- -- (3,979) --
Deferred
finance
charges (136) (113) (530) (415)
------------- -------------- ------------- --------------
EBITDA(1) $ 38,588 $ 32,220 $ 137,790 107,120
Write-off of
intangible
asset -- -- 3,979 --
------------- -------------- ------------- --------------
Adjusted
EBITDA $ 38,588 $ 32,220 $ 141,769 $ 107,120
Cash interest
income 107 495 801 1,086
Cash interest
paid (2,535) (1,665) (8,131) (5,806)
Maintenance
and
replacement
capital
expenditure
reserve (4,828) (4,000) (18,569) (14,669)
------------- -------------- ------------- --------------
Operating
Surplus(2) $ 31,332 $ 27,050 $ 115,870 $ 87,731
Cash
distribution
paid
relating to
the first
three
quarters of
the year -- -- (73,597) (57,229)
Cash reserves (6,503) (5,149) (17,444) (8,601)
------------- -------------- ------------- --------------
Available
cash for
distribution $ 24,829 $ 21,901 $ 24,829 $ 21,901
(1)
Three Month Three Month
Period ended Period ended Year ended Year ended
December 31, December December December 31,
2011 31, 2010 31, 2011 2010
($ '000) ($ '000) ($ '000) ($ '000)
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ----------- ------------
Net cash provided by
operating activities $ 31,331 $ 30,708 $ 127,464 $ 96,018
Net cash used in
investing activities $ -- $ (162,001) $ (120,000) $ (447,757)
Net cash (used
in)/provided by
financing activities $ (32,754) $ 137,476 $ (10,664) $ 325,139
(2) Excludes expansion capital expenditures.
Investor Relations
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
naviospartners@capitallink.com
There are no comments yet