Balance: December 31, 2009 $195.0
Prepayment - $12.5 million (12.5)
Additional borrowing 24.0
------
Balance: January 27, 2010 $206.5
------
No further principal payments are required until the first quarter of 2012.
Completion of Offering of 4,000,000 Common Units
On November 24, 2009, Navios Partners completed a public offering of
4,000,000 common units at $14.90 per unit and raised gross proceeds of
$59.6 million. The net proceeds of the offering, including discount and
excluding offering costs of $0.2 million, were $56.8 million. Navios
Partners also issued 81,633 additional general partnership units to its
general partner in exchange for $1.2 million of net proceeds (the "November
Offering").
Shipmanagement Agreement
Navios Partners fixed the rate for ship management services of its owned
fleet until November 2011 under the existing agreement with Navios
Shipmanagement Inc., a subsidiary of Navios Maritime Holdings, Inc.
("Navios Holdings") (
Three Month Three Month
Period ended Period ended Year ended
December 31, December 31, December 31, Year ended
2009 2008 2009 December 31,
(unaudited) (unaudited) (unaudited) 2008
($'000) ----------- ----------- ----------- -----------
Revenues $ 25,615 $ 21,551 $ 92,643 $ 75,082
EBITDA (1) $ 17,792 $ 14,213 $ 64,483 $ 50,116
Net income $ 10,982 $ 8,809 $ 34,322 $ 28,758
Earnings per
Common unit
(basic and diluted) 0.39 0.41 1.47 1.56
Operating Surplus $ 12,655 $ 9,420 $ 47,761 $ 32,099
Maintenance and
Replacement Capital
Expenditures $ 2,096 $ 2,742 $ 7,968 $ 9,894
(1) EBITDA for the year ended December 31, 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 period ended December 31, 2009
Time charter and voyage revenues for the three month period ended December
31, 2009 increased by $4.0 million, or 18.5%, to $25.6 million as compared
to $21.6 million for the same period in 2008. The increase was mainly
attributable to the acquisition of the rights to the Navios Sagittarius on
June 10, 2009 and the acquisition of Navios Apollon on October 29, 2009.
EBITDA increased by $3.6 million or 25.4% to $17.8 million for the three
month period ended December 31, 2009 as compared to $14.2 million for the
same period of 2008. This $3.6 million increase in EBITDA was primarily due
to: (a) a $4.0 million increase in revenue following the delivery of Navios
Sagittarius in Navios Partners' chartered-in fleet in June 2009 and the
acquisition of Navios Apollon in October 2009; (b) a $0.7 million decrease
in general and administrative expenses; and (c) a $0.3 decrease in net
other expenses. The above favorable variance of $5.0 million was partly
offset by a $1.0 million increase in time charter and voyage expenses due
to the delivery of Navios Sagittarius in Navios Partners' chartered-in
fleet in June 2009 and a $0.4 million increase in management fees due to
the acquisition of Navios Apollon.
The reserve for estimated maintenance and replacement capital expenditures
for the three month periods ended December 31, 2009 and 2008 was $2.1
million and $2.7 million, respectively. Expansion capital expenditures for
the three month periods ended December 31, 2009 and 2008 was $34.5 million
and $0, respectively.
Navios Partners generated an Operating Surplus for the three month period
ended December 31, 2009 of $12.7 million in comparison to $9.4 million for
the three month period ended December 31, 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 the three months ended December 31, 2009 amounted to
$11.0 million compared to $8.8 million for the three months ended
December 31, 2008. The increase in net income by $2.2 million was due to:
(a) a $3.6 million increase in EBITDA; (b) a $0.1 million decrease in
interest expense and (c) a $0.1 million decrease in direct vessel expenses.
This increase of $3.8 million was partly offset by a $1.6 million increase
in depreciation and amortization expense due to the acquisition of the
rights to the Navios Sagittarius and the acquisition of Navios Apollon.
Year ended December 31, 2009
Time charter and voyage revenues for the year ended December 31, 2009
increased by $17.5 million or 23.3% to $92.6 million as compared to $75.1
million for the same period in 2008. The increase was mainly attributable
to the delivery of the Navios Aldebaran on March 17, 2008, the acquisition
of the Navios Hope on July 1, 2008, both of which were fully operating
during the year ended December 31, 2009, the acquisition of the rights to
the Navios Sagittarius on June 10, 2009 and the acquisition of Navios
Apollon on October 29, 2009.
EBITDA increased by $14.4 million or 28.7% to $64.5 million for the year
ended December 31, 2009 as compared to $50.1 million for the same period of
2008. This $14.4 million increase in EBITDA was primarily due to: (a) a
$17.5 million increase in revenue as a result of the increased number of
operating days from 2,991 for the year ended December 31, 2008 to 3,552 for
the year ended December 31, 2009; (b) a $0.6 million decrease in general
and administrative expenses; and (c) a $0.3 million decrease in net other
expenses which was partially offset by a $2.3 million increase in time
charter and voyage expenses as a result of the increased number of vessels
in Navios Partners' chartered-in fleet and a $1.7 million increase in
management fees, due to the increase in the number of vessels.
The reserve for estimated maintenance and replacement capital expenditures
for the years ended December 31, 2009 and 2008 was $8.0 million and $9.9
million, respectively. Expansion capital expenditures for the years ended
December 31, 2009 and 2008 was $69.1 million and $69.2 million,
respectively.
Navios Partners generated an Operating Surplus for the year ended December
31, 2009 of $47.8 million in comparison to $32.1 million for the year ended
December 31, 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 the year ended December 31, 2009 amounted to $34.3 million
compared to $28.8 million for the year ended December 31, 2008. The
increase in net income by $5.5 million was due to: (a) a $14.4 million
increase in EBITDA; and (b) a $1.2 million decrease in interest expense.
This increase of $15.6 million was partially offset by: (a) a $4.0 million
increase in depreciation and amortization expense due to the acquisition of
the Navios Hope on July 1, 2008, which was fully operating during the year
ended December 31, 2009, the acquisition of the rights to the Navios
Sagittarius and the acquisition of Navios Apollon; and (b) a $6.1 million
non-cash compensation 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
month periods ended December 31, 2009 and 2008 and the years ended December
31, 2009 and 2008.
Three Month Three Month
Period ended Period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Available Days (1) 983 828 3,553 3,019
Operating Days (2) 983 817 3,552 2,991
Fleet Utilization (3) 100% 98.7% 100% 99.1%
Time Charter
Equivalent (per
day) $ 26,046 $ 26,027 $ 26,071 $ 24,873
Vessels operating
at period end 11 9 11 9
(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, January 27, 2010, at 8:30 am EST.
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 February 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 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 EST 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)
December 31, December 31,
2009 2008
--------- ---------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 77,878 $ 28,374
Restricted cash 13,322 -
Accounts receivable, net 602 313
Prepaid expenses and other current assets 777 371
--------- ---------
Total current assets 92,579 29,058
--------- ---------
Vessels, net 299,695 291,340
Deferred financing costs, net 1,431 1,915
Deferred dry dock and special survey costs, net 179 594
Intangible assets other than goodwill 40,372 -
Deposits for vessels acquisitions 2,500 -
--------- ---------
Total non-current assets 344,177 293,849
--------- ---------
Total assets $ 436,756 $ 322,907
========= =========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 518 $ 594
Accrued expenses 1,844 1,662
Deferred voyage revenue 9,025 2,606
Amounts due to related parties 1,964 1,539
Current portion of long-term debt - 40,000
--------- ---------
Total current liabilities 13,351 46,401
--------- ---------
Long-term debt 195,000 195,000
Unfavorable lease terms 2,662 4,659
Deferred voyage revenue 17,753 -
--------- ---------
Total non-current liabilities 215,415 199,659
--------- ---------
Total liabilities 228,766 246,060
--------- ---------
Commitments and contingencies - -
Partners' Capital:
Common Unitholders (24,291,815 and
13,631,415 units issued and outstanding at
December 31, 2009 and December 31, 2008
respectively) 369,747 243,639
Subordinated Unitholders (7,621,843 units issued
and outstanding at December 31, 2009 and
December 31, 2008, respectively) (164,004) (160,092)
General Partner (671,708 and 433,740 units issued
and outstanding at December 31, 2009 and
December 31, 2008, respectively) (3,835) (6,700)
Subordinated Series A Unitholders (1,000,000
and 0 units issued and outstanding at
December 31, 2009 and December 31, 2008,
respectively) 6,082 -
--------- ---------
Total partners' capital 207,990 76,847
--------- ---------
Total liabilities and partners' capital $ 436,756 $ 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
Period ended Period ended Year ended
December 31, December 31, December 31, Year ended
2009 2008 2009 December 31,
(unaudited) (unaudited) (unaudited) 2008
----------- ----------- ----------- -----------
Time charter and
voyage revenues $ 25,615 $ 21,551 $ 92,643 $ 75,082
Time charter and
voyage expenses (3,837) (2,797) (13,925) (11,598)
Direct vessel
expenses (50) (145) (415) (578)
Management fees (3,087) (2,668) (11,004) (9,275)
General and
administrative
expenses (867) (1,578) (3,208) (3,798)
Depreciation and
amortization (4,904) (3,277) (15,877) (11,865)
Interest expense and
finance cost, net (2,003) (2,117) (8,048) (9,216)
Interest income 147 135 261 301
Compensation expense - - (6,082) -
Other income 2 - 94 23
Other expense (34) (295) (117) (318)
----------- ----------- ----------- -----------
Net income $ 10,982 $ 8,809 $ 34,322 $ 28,758
=========== =========== =========== ===========
Earnings per unit:
Three Month Three Month
Period ended Period ended Year ended
December 31, December 31, December 31, Year ended
2009 2008 2009 December 31,
(unaudited) (unaudited) (unaudited) 2008
----------- ----------- ----------- -----------
Net income $ 10,982 $ 8,809 $ 34,322 $ 28,758
Earnings
attributable to:
Common unit holders 8,502 5,530 25,277 18,873
Subordinated unit
holders 2,260 3,092 8,321 9,270
General partner
unit holders 220 187 724 615
Subordinated
Series A unit
holders - - - -
Weighted average units
outstanding (basic
and diluted)
Common unit
holders 21,889,145 13,631,415 17,174,185 12,074,263
Subordinated unit
holders 7,621,843 7,621,843 7,621,843 7,621,843
General partner
unit holders 622,674 433,740 516,441 401,962
Subordinated
Series A unit
holders 1,000,000 - 1,000,000 -
Earnings per unit:
Common unit (basic
and diluted) $ 0.39 $ 0.41 $ 1.47 $ 1.56
Subordinated unit
(basic and diluted) $ 0.30 $ 0.41 $ 1.09 $ 1.22
General partner unit
(basic and diluted) $ 0.35 $ 0.43 $ 1.40 $ 1.53
Subordinated
Series A unit
(basic and diluted) $ - $ - $ - $ -
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Year Ended Year Ended
December 31, December 31,
2009 2008
--------- ---------
(unaudited)
OPERATING ACTIVITIES
Net income $ 34,322 $ 28,758
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 15,877 11,865
Amortization and write-off of deferred
financing cost 683 221
Amortization of deferred dry dock costs 415 578
Provision for bad debts 49 -
Compensation expense 6,082 -
Changes in operating assets and liabilities:
(Increase)/decrease in restricted cash (822) 797
(Increase)/decrease in accounts receivable (338) 68
(Increase) in prepaid expenses and other
current assets (406) (332)
(Decrease)/increase in accounts payable (76) 24
Increase in accrued expenses 182 231
Increase in deferred voyage revenue 24,172 2,453
Increase/(decrease) in amounts due to
related parties 425 (2,919)
--------- ---------
Net cash provided by operating activities 80,565 41,744
--------- ---------
INVESTING ACTIVITIES:
Acquisition of vessels (23,683) (69,505)
Acquisition of intangibles other than goodwill (42,917) -
Deposit for vessel acquisitions (2,500) -
--------- ---------
Net cash used in investing activities (69,100) (69,505)
--------- ---------
FINANCING ACTIVITIES:
Cash distribution paid (39,016) (24,552)
Proceeds from issuance of general partner units 2,948 918
Proceeds from issuance of common units, net of
offering costs 126,807 -
Proceeds from long-term debt - 70,000
Increase in restricted cash (12,500) -
Repayment of long-term debt and payment
of principal (40,000) -
Debt issuance costs (200) (326)
--------- ---------
Net cash (used in)/provided by financing
activities 38,039 46,040
--------- ---------
Increase in cash and cash equivalents 49,504 18,279
--------- ---------
Cash and cash equivalents, beginning of period 28,374 10,095
--------- ---------
Cash and cash equivalents, end of period $ 77,878 $ 28,374
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $ 7,590 $ 9,022
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 I
in July 2008 $ - $ 44,937
Unamortized portion of favorable lease terms
and purchase option capitalized to fixed
assets related to the acquisition of
Navios Fantastiks $ - $ 53,022
========= =========
EXHIBIT 2
Original Original
Charter Charter
Expiration Date/ Out Rate/
New 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 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 Panamax 2005 75,397 May 2010 $10,643
August 2013 $17,562
Navios Apollon Ultra
Handymax 2000 52,073 November 2012 $23,700
Navios Sagittarius Panamax 2006 75,756 November 2018 $26,125
Navios Hyperion Panamax 2006 75,707 February 2010 $32,300
April 2014 $37,953
Long-term Chartered-in Vessels
Navios Prosperity (3) Panamax 2007 82,535 July 2012 $24,000
Navios Aldebaran (4) Panamax 2008 76,500 March 2013 $28,391
(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 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 Japanese Yen declining
pro rata by 145 million Japanese Yen per calendar year.
(4) 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 Japanese
Yen declining pro rata by 150 million Japanese Yen per calendar year.
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 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)
Three Month Three Month (unaudited) (unaudited)
Period ended Period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
($ '000) ($ '000) ($ '000) ($ '000)
----------- ----------- ----------- -----------
Net Cash from
Operating Activities $ 10,966 $ 11,473 $ 80,565 $ 41,744
Net increase/(decrease)
in operating assets 933 315 1,566 (533)
Net (increase)/decrease
in operating
liabilities 4,579 503 (24,703) 211
Provision for bad debts (49) (49)
Net interest cost 1,856 1,982 7,787 8,915
Deferred finance
charges (493) (60) (683) (221)
--------- --------- --------- ---------
EBITDA(1) 17,792 14,213 64,483 50,116
Cash interest income 147 115 261 281
Cash interest paid (1,570) (2,166) (7,590) (9,022)
Expansion capital
expenditures (34,500) - (69,100) (69,155)
Equity Issuance 62,080 - 129,755 -
Borrowings to fund
expansion capital
expenditures - - - 69,773
Expansion capital
expenditures reserve (29,198) - (62,080) -
Maintenance and
replacement capital
expenditures (2,096) (2,742) (7,968) (9,894)
--------- --------- --------- ---------
Operating Surplus 12,655 9,420 47,761 32,099
Cash distribution paid
relating to the first
nine months of 2009
and 2008, respectively - - (30,342) (21,315)
Recommended reserves
accumulated as of
beginning of January 1 2,127 18 2,127 18
Reserves accumulated
during the first nine
months to be distributed
in the fourth quarter 4,764 1,364 - -
Recommended reserves
held as of quarter end (6,147) (2,127) (6,147) (2,127)
--------- --------- --------- ---------
Available cash for
distribution $ 13,399 $ 8,675 $ 13,399 $ 8,675
========= ========= ========= =========
(1) EBITDA for the year ended December 31, 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: 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