Navios Maritime Partners L.P. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2015
MONACO -- (Marketwired) -- 07/30/15 -- Navios Maritime Partners L.P. (NYSE: NMM)
- Dividend of $0.4425 per common unit
- Committed to a minimum annualized distribution of $1.77 per common unit through the end of 2016
- Net Income: $11.4 million in Q2; $22.2 million for the six months
- EBITDA: $38.7 million in Q2; $76.7 million for the six months
- Operating Surplus: $29.3 million in Q2; $57.1 million for the six months
- Delivery of one 2011 South Korean-built Container vessel of 13,100 TEU
- Chartered out for 12 years at $60,275 net per day
- 99.0% fixed for 2015
Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an international owner and operator of drybulk and container vessels, today reported its financial results for the second quarter and six months ended June 30, 2015.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated, "I am pleased to announce our results for the quarter. We recorded revenue of $56.5 million, reported $38.7 million of EBITDA and earned $11.4 million of net income. We also announced a quarterly distribution of $0.4425, representing an annual distribution of $1.77 per unit. This annual distribution provides a current yield of about 16.6% about 2.5 times the yield on the Alerian MLP Index."
Angeliki Frangou continued, "In 2013, Navios Partners diversified into the container segment, which today represents about 45% of 2015 EBITDA. However, Navios Partners continues to have material exposure to dry bulk through its 23 dry bulk vessels. We do not believe that the historically low rate environment of the first quarter of 2015 likely will be repeated soon. Indeed, since the first quarter, the BDI has improved by more than 100%, with Capesize spot rates significantly higher. Thus, we expect our dry bulk investments to provide material upside in an improving market."
RECENT DEVELOPMENTS
Cash Distribution The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2015 of $0.4425 per unit. The cash distribution is payable on August 14, 2015 to unitholders of record as of August 13, 2015.
Fleet Update On April 22, 2015, Navios Partners took delivery of the MSC Cristina, a 2011 South Korean-built Container vessel of 13,100 TEU. The vessel is chartered out for 12 years at a rate of $60,275 net per day, with Navios Partners' option to terminate after year seven. The acquisition was financed with cash on its balance sheet and bank debt.
Following the delivery of the MSC Cristina, Navios Partners has 23 drybulk vessels and eight container vessels in the water. An option to acquire a 13,100 TEU Container vessel was not exercised in June 2015.
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 3.3 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 99.0% of its available days for 2015, 63.3% for 2016 and 45.6% for 2017, expecting to generate revenues of approximately $236.5 million, $193.6 million and $167.5 million, respectively. The average expected daily charter-out rate for the fleet is $21,098, $26,966 and $32,427 for 2015, 2016 and 2017, respectively.
Navios Partners has insurance on certain long-term charter-out contracts of drybulk vessels for credit default occurring until the end of 2016, through an agreement with Navios Maritime Holdings Inc., up to a maximum cash payment of $20.0 million.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three and six months ended June 30, 2015 and 2014. The quarterly 2015 and 2014 information was derived from the unaudited condensed consolidated financial statements for the respective periods. Adjusted EBITDA, Adjusted Earnings per Common unit, Adjusted Net income 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 Six Month
Period Period Period
Ended Ended Ended Six Month
June 30, June 30, June 30, Period Ended
(in $'000 except per unit 2015 2014 2015 June 30, 2014
data) (unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- ---------------
Revenue $ 56,473(1) $ 55,178 $113,259(1) $112,676
Net Income $ 11,355(1) $ 29,985 $ 22,234(1) $ 48,346
Adjusted Net Income $ 11,355(1) $ 12,206(2) $ 22,234(1) $ 22,791(3) (4)
EBITDA $ 38,712(1) $ 54,188 $ 76,675(1) $123,203
Adjusted EBITDA $ 38,712(1) $ 36,409(2) $ 76,675(1) $ 75,638(3)
Earnings per Common Unit
(basic and diluted) $ 0.13(1) $ 0.37 $ 0.25(1) $ 0.61
Adjusted Earnings per
Common Unit (basic and
diluted) $ 0.13(1) $ 0.15(2) $ 0.25(1) $ 0.28(3) (4)
Operating Surplus $ 29,320(1) $ 41,920 $ 57,126(1) $ 98,767
Maintenance and
Replacement Capital
Expenditure reserve $ 3,449 $ 5,908 $ 6,674 $ 11,816
(1) Negatively affected by approximately $2.8 million revenue lost due to
drydocks performed in advance.
(2) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common
Unit do not include the accounting effect of the $17.8 million income from
the insurance settlement.
(3) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common
Unit do not include the accounting effect of the $47.6 million income from
the insurance settlement.
(4) Adjusted Net Income and Adjusted Earnings per Common Unit do not include
the $22.0 million loss from the non-cash accelerated amortization of the
intangible asset relating to one Capesize vessel.
Three month periods ended June 30, 2015 and 2014
Time charter and voyage revenues for the three month period ended June 30, 2015 increased by $1.3 million or 2.3% to $56.5 million, as compared to $55.2 million for the same period in 2014. The increase was mainly attributable to the increase in revenue following the delivery the YM Utmost and the YM Unity in the second half of 2014, the delivery of the MSC Cristina on April 22, 2015 and the increase in time charter equivalent ("TCE") to $20,679 for the three month period ended June 30, 2015, from $20,045 for the three month period ended June 30, 2014. The above increase in time charter and voyage revenues was partially mitigated by the decrease in available days of the fleet to 2,659 days for the three month period ended June 30, 2015, as compared to 2,694 days for the three month period ended June 30, 2014, mainly due to approximately 140 drydock days during the second quarter of 2015.
EBITDA for the second quarter of 2014 was positively affected by the accounting effect of $17.8 million income from the insurance settlement. Excluding this item, Adjusted EBITDA increased by $2.3 million to $38.7 million for the three month period ended June 30, 2015, as compared to $36.4 million for the same period in 2014. The increase in Adjusted EBITDA was due to: (i) a $1.3 million increase in revenue; (ii) a $2.2 million decrease in time charter and voyage expenses; (iii) a $0.1 million decrease in general and administrative expenses; and (iv) a $0.7 million decrease in other income/expenses, net. The above increase was partially mitigated by a $1.9 million increase in management fees due to the increased number of vessels.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended June 30, 2015 and 2014 was $3.4 million and $5.9 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 June 30, 2015 of $29.3 million, as compared to $41.9 million for the three month period ended June 30, 2014. 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 second quarter of 2014 was positively affected by the accounting effect of $17.8 million income from the insurance settlement. Excluding these items, Adjusted Net income for the three months ended June 30, 2015 amounted to $11.4 million compared to $12.2 million for the three months ended June 30, 2014. The decrease in Adjusted Net income by $0.9 million was due to: (i) a $2.0 million increase in depreciation and amortization expense; (ii) a $0.5 million increase in interest expense and finance cost, net; and (iii) a $0.6 million increase in direct vessel expenses partially offset by a $2.3 million increase in Adjusted EBITDA.
Six month periods ended June 30, 2015 and 2014
Time charter and voyage revenues for the six month period ended June 30, 2015 increased by $0.6 million or 0.5% to $113.3 million, as compared to $112.7 million for the same period in 2014. The increase was mainly attributable to the increase in revenue following the delivery of the Navios La Paix and the Navios Sun in January 2014, the YM Utmost and the YM Unity in the second half of 2014 and the delivery of the MSC Cristina on April 22, 2015. As a result of the vessel acquisitions, available days of the fleet increased to 5,431 days for the six month period ended June 30, 2015, as compared to 5,363 days for the six month period ended June 30, 2014. The above increase in time charter and voyage revenues was partially mitigated by the decrease in TCE to $20,248 for the six month period ended June 30, 2015, from $20,413 for the six month period ended June 30, 2014, which was primarily due to the decline in the freight market during 2015, as compared to the same period in 2014.
EBITDA for the first half of 2014 was positively affected by the accounting effect of $47.6 million income from the insurance settlement. Excluding this item, Adjusted EBITDA increased by $1.0 million to $76.7 million for the six month period ended June 30, 2015, as compared to $75.6 million for the same period in 2014. The increase in Adjusted EBITDA was due to: (i) a $0.6 million increase in revenue; (ii) a $3.1 million decrease in time charter and voyage expenses; (iii) a $0.2 million decrease in general and administrative expenses; and (iv) a $0.5 million decrease in other income/expense, net. The above increase was partially mitigated by a $3.3 million increase in management fees due to the increased number of vessels.
The reserve for estimated maintenance and replacement capital expenditures for the six month periods ended June 30, 2015 and 2014 was $6.7 million and $11.8 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Partners generated an Operating Surplus for the six month period ended June 30, 2015 of $57.1 million, as compared to $98.8 million for the six month period ended June 30, 2014. 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 first half of 2014 was: (i) positively affected by the accounting effect of $47.6 million income from the insurance settlement; and (ii) negatively impacted by a $22.0 million loss from the non-cash accelerated amortization of an intangible asset relating to one Capesize vessel. Excluding these items, Adjusted Net income for the six months ended June 30, 2015 amounted to $22.2 million compared to $22.8 million for the six months ended June 30, 2014. The decrease in Adjusted Net income by $0.6 million was due to a $2.0 million increase in interest expense and finance cost, net and a $1.1 million increase in direct vessel expenses. The above decrease was partially mitigated by a $1.0 million increase in Adjusted EBITDA and a $1.5 million decrease in depreciation and amortization expense.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three and six month periods ended June 30, 2015 and 2014.
Three Month Three Month Six Month Six Month
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Available Days(1) 2,659 2,694 5,431 5,363
Operating Days(2) 2,659 2,693 5,428 5,359
Fleet Utilization(3) 100.0% 99.9% 100.0% 99.9%
Time Charter Equivalent (per
day) $ 20,679 $ 20,045 $ 20,248 $ 20,413
Vessels operating at period
end 31 30 31 30
(1) Available days for the fleet represent total calendar days the vessels
were in Navios Partners' possession for the relevant period after
subtracting off-hire days associated with scheduled repairs, dry
dockings 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 Navios Partners'
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) TCE rates: 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, July 30, 2015 to discuss the results for the second quarter and six months ended June 30, 2015.
Call Date/Time: Thursday, July 30, 2015 at 8:30 am ET Call Title: Navios Partners Q2 2015 Financial Results Conference Call US Dial In: +1.866.394.0817 International Dial In: +1.706.679.9759 Conference ID: 7509 6616
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: 7509 6616
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 8:00 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Partners (NYSE: NMM) 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, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize, Ultra-Handymax and Container vessels in particular, fluctuations in charter rates for dry cargo carriers and container vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, 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, general domestic and international political conditions, 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)
June 30, December 31,
2015 2014
(unaudited) (unaudited)
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 26,841 $ 99,495
Restricted cash 22,201 954
Accounts receivable, net 13,051 13,278
Prepaid expenses and other current assets 986 1,470
------------ ------------
Total current assets 63,079 115,197
------------ ------------
Vessels, net 1,259,432 1,139,426
Deposits for vessels acquisitions -- 10
Deferred dry dock and special survey costs, net
and other long term assets 16,279 8,750
Investment in affiliates 993 521
Loans receivable from affiliates 1,096 750
Intangible assets 64,745 74,055
------------ ------------
Total non-current assets 1,342,545 1,223,512
------------ ------------
Total assets $ 1,405,624 $ 1,338,709
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable $ 4,337 $ 3,824
Accrued expenses 4,240 3,623
Deferred voyage revenue 4,146 4,310
Current portion of long-term debt, net 20,882 16,435
Amounts due to related parties 15,643 1,880
------------ ------------
Total current liabilities 49,248 30,072
------------ ------------
Long-term debt, net 587,619 559,539
------------ ------------
Total non-current liabilities 587,619 559,539
------------ ------------
Total liabilities 636,867 589,611
------------ ------------
Commitments and contingencies -- --
Partners' capital:
Common Unitholders (83,079,710 and 77,359,163
units issued and outstanding at June 30, 2015 and
December 31, 2014, respectively) 763,284 744,075
General Partner (1,695,509 and 1,578,763 units
issued and outstanding at June 30, 2015 and
December 31, 2014, respectively) 5,473 5,023
------------ ------------
Total partners' capital 768,757 749,098
------------ ------------
Total liabilities and partners' capital $ 1,405,624 $ 1,338,709
============ ============
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 Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Time charter and voyage
revenues $ 56,473 $ 55,178 $ 113,259 $ 112,676
Time charter and voyage
expenses (1,477) (3,640) (4,948) (8,083)
Direct vessel expenses (757) (146) (1,294) (146)
Management fees (14,141) (12,239) (27,542) (24,244)
General and administrative
expenses (1,949) (2,029) (3,824) (3,973)
Depreciation and amortization (19,045) (17,009) (37,144) (60,687)
Interest expense and finance
cost, net (7,601) (7,085) (16,102) (14,114)
Interest income 46 37 99 90
Other income -- 17,875 400 47,915
Other expense (194) (957) (670) (1,088)
---------- ---------- ---------- ----------
Net income $ 11,355 $ 29,985 $ 22,234 $ 48,346
Earnings per unit:
Three Month Three Month Six Month Six Month
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Earnings per unit:
Common unit (basic and
diluted) $ 0.13 $ 0.37 $ 0.25 $ 0.61
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
Six Month Six Month
Period Period
Ended Ended
June 30, June 30,
2015 2014
(unaudited) (unaudited)
------------ ------------
OPERATING ACTIVITIES
Net income $ 22,234 $ 48,346
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 37,144 60,687
Amortization and write-off of deferred financing
cost 2,149 1,505
Amortization of deferred dry dock and special
survey costs 1,294 146
Changes in operating assets and liabilities:
Net decrease in restricted cash -- 2
Decrease in accounts receivable 227 5,307
Decrease in prepaid expenses and other current
assets 484 1,238
Decrease in other long term assets 7 5
Payments for dry dock and special survey costs (8,830) (2,735)
Increase/(decrease) in accounts payable 513 (124)
Increase/(decrease) in accrued expenses 617 (601)
(Decrease)/increase in deferred voyage revenue (164) 159
Increase in amounts due to related parties 13,763 2,462
----------- -----------
Net cash provided by operating activities 69,438 116,397
----------- -----------
INVESTING ACTIVITIES:
Acquisition of vessels (147,830) (36,854)
Investment in affiliates (472) --
Loans receivable from affiliates (346) (303)
Release of restricted cash for vessel acquisitions -- 33,429
----------- -----------
Net cash used in investing activities (148,648) (3,728)
----------- -----------
FINANCING ACTIVITIES:
Cash distributions paid (76,193) (68,047)
Net proceeds from issuance of general partner units 1,528 2,233
Proceeds from issuance of common units, net of
offering costs 72,090 104,499
Proceeds from long term debt 79,819 --
Net increase in restricted cash (21,247) --
Repayment of long-term debt and payment of
principal (48,695) (3,184)
Debt issuance costs (746) --
----------- -----------
Net cash provided by financing activities 6,556 35,501
----------- -----------
(Decrease)/increase in cash and cash equivalents (72,654) 148,170
----------- -----------
Cash and cash equivalents, beginning of period 99,495 35,346
----------- -----------
Cash and cash equivalents, end of period $ 26,841 $ 183,516
=========== ===========
EXHIBIT 2
Owned Vessels Type Built Capacity (DWT)
----------------------- ---------------- ------------ ----------------
Navios Apollon Ultra-Handymax 2000 52,073
Navios Soleil Ultra-Handymax 2009 57,337
Navios La Paix Ultra-Handymax 2014 61,485
Navios Gemini S Panamax 1994 68,636
Navios Libra II Panamax 1995 70,136
Navios Felicity Panamax 1997 73,867
Navios Galaxy I Panamax 2001 74,195
Navios Hyperion Panamax 2004 75,707
Navios Alegria Panamax 2004 76,466
Navios Orbiter Panamax 2004 76,602
Navios Helios Panamax 2005 77,075
Navios Hope Panamax 2005 75,397
Navios Sun Panamax 2005 76,619
Navios Sagittarius Panamax 2006 75,756
Navios Harmony Panamax 2006 82,790
Navios Fantastiks Capesize 2005 180,265
Navios Aurora II Capesize 2009 169,031
Navios Pollux Capesize 2009 180,727
Navios Fulvia Capesize 2010 179,263
Navios Melodia Capesize 2010 179,132
Navios Luz Capesize 2010 179,144
Navios Buena Ventura Capesize 2010 179,259
Navios Joy Capesize 2013 181,389
Capacity
Container Vessels Type Built TEU
----------------------- ---------------- ------------ ----------------
Hyundai Hongkong Container 2006 6,800
Hyundai Singapore Container 2006 6,800
Hyundai Tokyo Container 2006 6,800
Hyundai Shanghai Container 2006 6,800
Hyundai Busan Container 2006 6,800
YM Utmost Container 2006 8,204
YM Unity Container 2006 8,204
MSC Cristina Container 2011 13,100
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
1. EBITDA and Adjusted EBITDA
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.
Adjusted EBITDA represents EBITDA excluding certain items, as described under "Earnings Highlights".
EBITDA and Adjusted EBITDA are presented because Navios Partners believes that EBITDA and Adjusted EBITDA are 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 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 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 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
Three Month Three Month Six Month Six Month
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
($ '000) ($ '000) ($ '000) ($ '000)
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net cash provided by
operating activities $ 42,102 $ 80,113 $ 69,438 $ 116,397
Net decrease /(increase) in
operating assets 4,081 (31,172) 8,112 (3,817)
Net decrease in operating
liabilities (14,247) (1,046) (14,729) (1,896)
Net interest cost 7,555 7,048 16,003 14,024
Amortization and write-off of
deferred financing costs (779) (755) (2,149) (1,505)
---------- ---------- ---------- ----------
EBITDA(1) $ 38,712 $ 54,188 $ 76,675 $ 123,203
Income from the insurance
settlement -- (17,779) -- (47,565)
---------- ---------- ---------- ----------
Adjusted EBITDA $ 38,712 $ 36,409 $ 76,675 $ 75,638
Cash interest income 15 36 42 63
Cash interest paid (5,958) (6,396) (12,917) (12,683)
Maintenance and replacement
capital expenditures (3,449) (5,908) (6,674) (11,816)
Income from the insurance
settlement -- 17,779 -- 47,565
---------- ---------- ---------- ----------
Operating Surplus $ 29,320 $ 41,920 $ 57,126 $ 98,767
Cash distribution paid
relating to the first
quarter -- -- (38,097) (35,474)
Cash reserves 8,777 (6,446) 19,068 (27,819)
---------- ---------- ---------- ----------
Available cash for
distribution $ 38,097 $ 35,474 $ 38,097 $ 35,474
========== ========== ========== ==========
(1)
Three Month Three Month Six Month Six Month
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
($ '000) ($ '000) ($ '000) ($ '000)
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net cash provided by
operating activities $ 42,102 $ 80,113 $ 69,438 $ 116,397
Net cash used in investing
activities $ (133,846) $ (90) $ (148,648) $ (3,728)
Net cash provided by/(used
in) financing activities $ 18,662 $ (37,066) $ 6,556 $ 35,501
Contacts Navios Maritime Partners L.P. +1 (212) 906 8645 [email protected] Nicolas Bornozis Capital Link, Inc. +1 (212) 661 7566 [email protected]
Source: Navios Maritime Partners L.P.