Navios Maritime Partners L.P. Reports Financial Results for the First Quarter Ended March 31, 2022
05/10/2022 - 07:02 AM
Revenue: $236.6 million for Q1 2022Net Income: $85.7 million for Q1 2022Net cash from operating activities: EBITDA: $126.1 million for Q1 2022Fleet Update ~ $1.3 billion investment in 22 newbuilding vessels through Q1 2025 ~$2.8 billion in contracted revenue through 2031 MONACO, May 10, 2022 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an international owner and operator of dry cargo and tanker vessels, today reported its financial results for the first quarter ended March 31, 2022.
Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the first quarter of 2022. During the first quarter of 2022, Navios Partners recorded revenue of $236.6 million , EBITDA of $126.1 million and net income of $85.7 million , or $2.78 earnings per common unit.”
Angeliki Frangou continued, “We stand at the crossroads of a war in Ukraine, rising interest rates and a zero-Covid policy in China. There is no crystal ball to understand how this will evolve. In the meantime, governments and companies are quick to act to satisfy their short term needs as they consider long-term policies in light of these uncertainties.”
Angeliki Frangou also stated, “We believe our diversified structure offers the opportunity for continuous accretive growth. As previously announced, this quarter we agreed to acquire four Aframax / LR2 tankers on the back of charter commitments from an investment grade counterparty. These vessels are designed with the latest technology and can carry either crude or products. Through this transaction, we entered a new sub-segment with reduced risk and excellent long-term prospects.”
Fleet Update
Acquisition of four 115,000 dwt Aframax/LR2 Newbuilding vessels in April 2022 In April 2022, Navios Partners agreed to purchase four 115,000 dwt Aframax/LR2 newbuilding vessels for a purchase price of $58.5 million each (plus $4.2 million in additional features). The vessels have been designed with the latest technology to optimize efficiency. They are expected to be delivered into Navios Partners’ fleet during 2024 and the first quarter of 2025. The closing of the transaction is subject to completion of customary documentation.
$185 million Secured Long-term Time Charters for four vessels
Navios Partners has secured new long-term time charters for four vessels which are expected to generate approximately $185 million of contracted revenue.
Two 115,000 dwt Aframax/LR2 newbuilding vessels, expected to be delivered in 2024, have been chartered-out for an average period of 60 months, at a net rate of $25,576 per day. The charterer has an option to extend the charter for a further five one-year options at rates increasing by $1,234 per day each year. In addition, the charterer has the option to charter one or both of the two additional tanker vessels on identical terms. The option can be exercised by mid October 2022. One 310,000 dwt newbuilding VLCC expected to be delivered in second half 2022, has been bareboat chartered-out for an average period of 22 months, at a floating rate on adjusted TD3C-WS with a floor of $22,572 net per day and ceiling of $29,700 net per day. One 4,250 TEU containership has been chartered-out for an average period of 62 months, at an average net rate of $40,743 per day (2.0x the current average contracted net rate of $20,845). Following the above charters, Navios Partners has $2.8 billion in contracted revenue through 2031.
Financing Update
On May 9, 2022, Navios Partners entered into a new credit facility with a commercial bank for a total amount of up to $25.2 million in order to refinance existing indebtedness and for working capital purposes. The credit facility: (i) has an amortization profile of approximately six years; (ii) matures in the second quarter of 2027; and (iii) bears interest at Term Secured Overnight Financing Rate (SOFR) plus credit adjustment spread plus 250 bps per annum.
On March 28, 2022, Navios Partners entered into a new credit facility with a commercial bank for a total amount of up to $55.0 million in order to refinance the existing indebtedness of three of its vessels and for general corporate purposes. The credit facility matures in March 2027 and bears interest at daily cumulative or non-cumulative compounded RFR rate (as defined in the loan agreement) plus 2.25% per annum. On March 31, 2022, the entire amount was drawn under this loan.
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2022 of $0.05 per unit. The cash distribution will be payable on May 12, 2022 to all unitholders of record as of May 9, 2022. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.
Operating Highlights
Navios Partners owns and operates a fleet comprised of 54 dry bulk vessels, 47 containerships and 49 tanker vessels, including three newbuilding Capesize bareboat charter-in vessels expected to be delivered by the second half of 2022, two newbuilding Capesize bareboat charter-in vessels expected to be delivered by the first half of 2023, two newbuilding Panamax vessels expected to be delivered by the second half of 2022 and first half of 2023, one newbuilding VLCC bareboat charter-in vessel expected to be delivered by the second half of 2022, four newbuilding Aframax/LR2 vessels expected to be delivered in 2024 and first half of 2025, ten newbuilding Containerships expected to be delivered by the second half of 2023 and in 2024 and two Containerships agreed to be sold and expected to be delivered in the second half of 2022.
Navios Partners has entered into short, medium and long-term time charter-out agreements for its vessels with a remaining average term of approximately 1.8 years. Navios Partners has currently fixed 55.4% of its available days for the remaining nine months of 2022 and 29.0% for 2023. Navios Partners expects to generate contracted revenues of approximately $563.3 million and $542.7 million for the remaining nine months of 2022 and for 2023, respectively. The average expected daily charter-out rate for the fleet is $28,697 and $38,253 for the remaining nine months of 2022 and for 2023, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled condensed consolidated statements of operations for the three month periods ended March 31, 2022 and 2021. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings per Common Unit basic and diluted and Adjusted Net Income are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Upon completion of the merger (“NMCI Merger”) with Navios Maritime Containers L.P. (“Navios Containers”) on March 31, 2021, beginning from April 1, 2021, and obtaining control over Navios Maritime Acquisition Corporation (“Navios Acquisition”) on August 25, 2021, beginning from August 26, 2021, the results of operations of Navios Containers and Navios Acquisition are included in Navios Partners’ Consolidated Statements of Operations. On October 15, 2021, Navios Partners completed its merger (“NNA Merger”) with Navios Acquisition.
Three Month Period Ended March 31, 2022 Three Month Period Ended March 31, 2021 (unaudited) (in $‘000 except per unit data) (unaudited) Revenue $ 236,617 $ 65,063 Net Income $ 85,665 $ 136,679 Adjusted Net Income $ 85,665 $ 11,787 ( 1 ) Net cash provided by operating activities $ 5,153 $ 16,177 EBITDA $ 126,118 $ 158,551 Adjusted EBITDA $ 126,118 $ 33,659 ( 1 ) Earnings per Common Unit basic $ 2.78 $ 11.78 Earnings per Common Unit diluted $ 2.78 $ 11.69 Adjusted Earnings per Common Unit basic $ 2.78 $ 1.02 ( 1 ) Adjusted Earnings per Common Unit diluted $ 2.78 $ 1.01 ( 1 )
(1) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three month period ended March 31, 2021 have been adjusted to exclude: (i) an $80.8 million gain from equity in net earnings of affiliated companies; and (ii) a $44.1 million bargain purchase gain upon obtaining control over Navios Containers.
Three month periods ended March 31, 2022 and 2021
Time charter and voyage revenues for the three month period ended March 31, 2022 increased by approximately $171.5 million , or 263.4% , to $236.6 million , as compared to $65.1 million for the same period in 2021. The increase in revenue was mainly attributable to the increase in the size of our fleet and to the increase in Time Charter Equivalent (“TCE”) rate. For the three month period ended March 31, 2022, TCE rate increased by 37.4% to $20,386 per day, as compared to $14,836 per day for the same period in 2021. The available days of the fleet increased by 164.1% to 11,228 days for the three month period ended March 31, 2022, as compared to 4,252 for the same period in 2021 mainly due to the NMCI Merger and the NNA Merger.
EBITDA of Navios Partners for the three month periods ended March 31, 2022 and 2021 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by approximately $92.4 million to $126.1 million for the three month period ended March 31, 2022, as compared to $33.7 million for the same period in 2021. The increase in Adjusted EBITDA was primarily due to a: (i) $171.5 million increase in time charter and voyage revenues; and (ii) $0.5 million decrease in loss on sale of vessels. The above increase was partially mitigated by: (i) a $50.2 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) a $14.6 million increase in time charter and voyage expenses; (iii) an $9.0 million increase in general and administrative expenses, mainly due to the increased fleet; (iv) a $4.9 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (v) a $0.9 million increase in other expense, net.
Net income for the three month periods ended March 31, 2022 and 2021 was affected by the items described in the table above. Excluding these items, Adjusted Net Income for the three month period ended March 31, 2022 amounted to $85.7 million as compared to $11.8 million for the three month period ended March 31, 2021. The increase in Adjusted Net Income was primarily due to a: (i) $92.4 million increase in Adjusted EBITDA; and (ii) $21.8 million increase in amortization of the unfavorable lease terms. The above increase was partially mitigated by a: (i) $29.8 million increase in depreciation and amortization expense; (ii) $7.4 million increase in interest expense and finance cost, net; (iii) $3.0 million increase in amortization of deferred drydock, special survey costs and other capitalized items; and (iv) $0.1 million decrease in interest income.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month periods ended March 31, 2022 and 2021 (including the Navios Containers’ fleet and Navios Acquisition’s fleet beginning from April 1, 2021 and August 26, 2021, respectively).
Three Month Period Ended Three Month Period Ended (unaudited) (unaudited) Available Days (1) 11,228 4,252 Operating Days (2) 11,072 4,201 Fleet Utilization (3) 98.6 % 98.8 % TCE Combined (per day) (4) $ 20,386 $ 14,836 TCE Drybulk (per day) (4) $ 19,848 $ 13,050 TCE Containers (per day) (4) $ 27,214 $ 23,794 TCE Tankers (per day) (4) $ 15,345 — Vessels operating at period end 128 79
(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 and ballast days relating to voyages. 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 are 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 generating revenue, 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, dry dockings or special surveys. (4 ) TCE rate: Time Charter Equivalent rate per day is defined as voyage, time charter revenues and bareboat charter-out revenues (grossed up by currently applicable fixed vessel operating expenses) less voyage expenses during a period divided by the number of available days during the period. The TCE rate per day 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 on Tuesday, May 10, 2022 to discuss the results for the first quarter ended March 31, 2022.
Call Date/Time: Tuesday, May 10, 2022 at 8:30 am ET
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: +1.800.839.5635
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 at www.navios-mlp.com under the "Investors" section at 8:00 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is an international owner and operator of dry cargo and tanker vessels. For more information, please visit our website at www.navios-mlp.com .
Forward-Looking Statements
This press release contains and will contain 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, including TCE rates and Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, Navios Partners’ ability to realize the projected advantages of the NNA Merger, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters and Navios Partners’ ability to refinance its debt on attractive terms, or at all. 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.
These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although 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 risks and are based upon a number of assumptions and estimates that 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, risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, wars, diseases, pandemics, political events, piracy or acts by terrorists; uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry and liquid cargo shipping sectors in general and the demand for our dry bulk, containerships and tanker vessels in particular, fluctuations in charter rates for dry bulk, containerships and tanker vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, 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, 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 Navios Partners’ filings with the Securities and Exchange Commission, including its Form 20-Fs and Form 6-Ks. 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. Navios Partners makes no prediction or statement about the performance of its common units.
Contacts
Navios Maritime Partners L.P.Investors@navios-mlp.com
Nicolas Bornozisnaviospartners@capitallink.com EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE SHEET DATA
March 31, 2022 (unaudited) December 31, 2021 (unaudited) ASSETS Cash and cash equivalents, including restricted cash $ 108,196 $ 169,446 Other current assets 100,354 56,894 Vessels, net 2,819,311 2,852,570 Other non-current assets 556,541 544,389 Total assets $ 3,584,402 $ 3,623,299 LIABILITIES AND PARTNERS’ CAPITAL Other current liabilities $ 80,573 $ 140,368 Total borrowings, net (including current and non-current) 1,319,840 1,361,709 Other non-current liabilities 330,098 351,497 Total partners’ capital 1,853,891 1,769,725 Total liabilities and partners’ capital $ 3,584,402 $ 3,623,299
NAVIOS MARITIME PARTNERS L.P. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in thousands of U.S. Dollars except unit and per unit data)
Three Month Period Ended March 31, 2022 (unaudited) Three Month Period Ended March 31, 2021 (unaudited) Time charter and voyage revenues $ 236,617 $ 65,063 Time charter and voyage expenses (17,143 ) (2,495 ) Direct vessel expenses (11,193 ) (3,154 ) Vessel operating expenses (entirely through related parties transactions) (73,172 ) (22,962 ) General and administrative expenses (13,916 ) (4,907 ) Depreciation and amortization of intangible assets (42,866 ) (13,087 ) Amortization of unfavorable lease terms 21,839 — Loss on sale of vessels — (511 ) Interest expense and finance cost, net (13,227 ) (5,844 ) Interest income 2 115 Other expense, net (1,276 ) (431 ) Equity in net earnings of affiliated companies — 80,839 Bargain gain — 44,053 Net income $ 85,665 $ 136,679
Earnings per unit:
Three Month Period Ended March 31, 2022 Three Month Period Ended March 31, 2021 (unaudited) (unaudited) Earnings per unit: Earnings per common unit, basic $ 2.78 $ 11.78 Earnings per common unit, diluted $ 2.78 $ 11.69
NAVIOS MARITIME PARTNERS L.P. Other Financial Information
Three Month Period Ended March 31, 2022 Three Month Period Ended March 31, 2021 (in thousands of U.S. dollars) (unaudited) (unaudited) Net cash provided by operating activities $ 5,153 $ 16,177 Net cash (used in)/ provided by investing activities $ (21,669 ) $ 5,638 Net cash used in financing activities $ (44,734 ) $ (1,163 ) (Decrease)/ increase in cash, cash equivalents and restricted cash $ (61,250 ) $ 20,652
EXHIBIT 2
Owned Drybulk Vessels Type Built Capacity (DWT) Navios Amaryllis Ultra-Handymax 2008 58,735 Navios Christine B Ultra-Handymax 2009 58,058 Serenitas N Ultra-Handymax 2011 56,644 Navios La Paix Ultra-Handymax 2014 61,485 Navios Hyperion Panamax 2004 75,707 Navios Anthos Panamax 2004 75,798 Navios Alegria Panamax 2004 76,466 Navios Orbiter Panamax 2004 76,602 Navios Hope Panamax 2005 75,397 Navios Sun Panamax 2005 76,619 Navios Helios Panamax 2005 77,075 Navios Apollon I Panamax 2005 87,052 Navios Symmetry Panamax 2006 74,381 Navios Sagittarius Panamax 2006 75,756 Navios Harmony Panamax 2006 82,790 Navios Libertas Panamax 2007 75,511 Navios Prosperity I Panamax 2007 75,527 Navios Camelia Panamax 2009 75,162 Copernicus N Panamax 2010 93,062 Unity N Panamax 2011 79,642 Odysseus N Panamax 2011 79,642 Navios Avior Panamax 2012 81,355 Navios Centaurus Panamax 2012 81,472 Navios Victory Panamax 2014 77,095 Navios Sphera Panamax 2016 84,872 Navios Beaufiks Capesize 2004 180,310 Navios Fantastiks Capesize 2005 180,265 Navios Aurora II Capesize 2009 169,031 Navios Bonavis Capesize 2009 180,022 Navios Sol Capesize 2009 180,274 Navios Pollux Capesize 2009 180,727 Navios Symphony Capesize 2010 178,132 Navios Melodia Capesize 2010 179,132 Navios Luz Capesize 2010 179,144 Navios Buena Ventura Capesize 2010 179,259 Navios Fulvia Capesize 2010 179,263 Navios Aster Capesize 2010 179,314 Navios Ace Capesize 2011 179,016 Navios Azimuth Capesize 2011 179,169 Navios Koyo Capesize 2011 181,415 Navios Ray Capesize 2012 179,515 Navios Joy Capesize 2013 181,389 Navios Gem Capesize 2014 181,336 Navios Mars Capesize 2016 181,259
Owned Containerships Type Built Capacity (TEU) Navios Summer Containership 2006 3,450 Matson Oahu Containership 2006 3,450 Hyundai Hongkong Containership 2006 6,800 Hyundai Singapore Containership 2006 6,800 Hyundai Busan Containership 2006 6,800 Hyundai Shanghai Containership 2006 6,800 Hyundai Tokyo Containership 2006 6,800 Navios Utmost(1) Containership 2006 8,204 Navios Unite(1) Containership 2006 8,204 Protostar N Containership 2007 2,741 Navios Spring Containership 2007 3,450 Matson Lanai Containership 2007 4,250 Navios Indigo Containership 2007 4,250 Navios Vermilion Containership 2007 4,250 Navios Verde Containership 2007 4,250 Navios Amarillo Containership 2007 4,250 Navios Azure Containership 2007 4,250 Navios Domino Containership 2008 4,250 Navios Delight Containership 2008 4,250 Navios Magnolia Containership 2008 4,730 Navios Jasmine Containership 2008 4,730 Navios Chrysalis Containership 2008 4,730 Navios Nerine Containership 2008 4,730 Spectrum N Containership 2009 2,546 Navios Devotion Containership 2009 4,250 Navios Destiny Containership 2009 4,250 Navios Lapis Containership 2009 4,250 Navios Tempo Containership 2009 4,250 Navios Miami Containership 2009 4,563 Navios Dorado Containership 2010 4,250 Navios Felicitas Containership 2010 4,360 Bahamas Containership 2010 4,360 Zim Carmel (ex. Bermuda) Containership 2010 4,360 Navios Unison Containership 2010 10,000 Navios Constellation Containership 2011 10,000 Fleur N Containership 2012 2,782 Ete N Containership 2012 2,782
(1) Vessel agreed to be sold.
Owned Tanker Vessels Type Built Capacity (DWT) Nave Cosmos Chemical Tanker 2010 25,130 Nave Polaris Chemical Tanker 2011 25,145 Hector N MR1 Product Tanker 2008 38,402 Perseus N MR1 Product Tanker 2009 36,264 Star N MR1 Product Tanker 2009 37,836 Nave Dorado MR2 Product Tanker 2005 47,999 Nave Equinox MR2 Product Tanker 2007 50,922 Nave Pulsar MR2 Product Tanker 2007 50,922 Nave Orbit MR2 Product Tanker 2009 50,470 Nave Equator MR2 Product Tanker 2009 50,542 Nave Aquila MR2 Product Tanker 2012 49,991 Nave Atria MR2 Product Tanker 2012 49,992 Nave Capella MR2 Product Tanker 2013 49,995 Nave Alderamin MR2 Product Tanker 2013 49,998 Nave Bellatrix MR2 Product Tanker 2013 49,999 Nave Orion MR2 Product Tanker 2013 49,999 Nave Titan MR2 Product Tanker 2013 49,999 Bougainville MR2 Product Tanker 2013 50,626 Nave Pyxis MR2 Product Tanker 2014 49,998 Nave Luminosity MR2 Product Tanker 2014 49,999 Nave Jupiter MR2 Product Tanker 2014 49,999 Nave Velocity MR2 Product Tanker 2015 49,999 Nave Sextans MR2 Product Tanker 2015 49,999 Nave Ariadne LR1 Product Tanker 2007 74,671 Nave Cielo LR1 Product Tanker 2007 74,671 Aurora N LR1 Product Tanker 2008 63,495 Lumen N LR1 Product Tanker 2008 63,599 Nave Andromeda LR1 Product Tanker 2011 75,000 Nave Cetus LR1 Product Tanker 2012 74,581 Nave Cassiopeia LR1 Product Tanker 2012 74,711 Nave Estella LR1 Product Tanker 2012 75,000 Nave Rigel LR1 Product Tanker 2013 74,673 Nave Atropos LR1 Product Tanker 2013 74,695 Nave Photon VLCC 2008 297,395 Nave Galactic VLCC 2009 297,168 Nave Spherical VLCC 2009 297,188 Nave Constellation VLCC 2010 296,988 Nave Quasar VLCC 2010 297,376 Nave Synergy VLCC 2010 299,973 Nave Universe VLCC 2011 297,066 Nave Buena Suerte VLCC 2011 297,491
Bareboat Chartered-in vessels Type Built Capacity (DWT) Purchase Option Navios Libra Panamax 2019 82,011 Yes Navios Star Panamax 2021 81,994 Yes Navios Amitie Panamax 2021 82,002 Yes Baghdad VLCC 2020 313,433 Yes Nave Electron VLCC 2021 313,239 Yes Erbil VLCC 2021 313,486 Yes
Bareboat Chartered-in vessels to be delivered Type Delivery date Capacity (DWT) Purchase Option TBN I Capesize H2 2022 180,000 Yes TBN II Capesize H2 2022 180,000 Yes TBN III Capesize H2 2022 180,000 Yes TBN VII Capesize H1 2023 180,000 Yes TBN V Capesize H1 2023 180,000 Yes TBN XIV VLCC H2 2022 310,000 Yes
Owned to be delivered Type Delivery Date Capacity DWT / (TEU) TBN IV Panamax H2 2022 81,000 TBN VI Panamax H1 2023 81,000 TBN VIII Containership H2 2023 5,300 TBN IX Containership H2 2023 5,300 TBN X Containership H1 2024 5,300 TBN XI Containership H1 2024 5,300 TBN XV Containership H1 2024 5,300 TBN XVI Containership H1 2024 5,300 TBN XII Containership H2 2024 5,300 TBN XIII Containership H2 2024 5,300 TBN XVII Containership H2 2024 5,300 TBN XVIII Containership H2 2024 5,300 TBN XIX Aframax/LR2 H1 2024 115,000 TBN XX Aframax/LR2 H2 2024 115,000 TBN XXI Aframax/LR2 H2 2024 115,000 TBN XXII Aframax/LR2 H1 2025 115,000
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Common Unit, basic and diluted are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/ (loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States.
EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described under “Earnings Highlights”. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/(decrease) in operating assets; (ii) net (increase)/ decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred financing cost; (v) equity in net earnings of affiliated companies; (vi) non-cash accrued interest income and amortization of deferred revenue; (vii) stock-based compensation expense; (viii) amortization of operating lease right-of-use asset; (ix) loss on sale of assets and (x) bargain purchase gain. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
We present Adjusted Net Income by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income adjusts net income for the items described above under “Earnings Highlights”. The definition of Adjusted Net Income used here may not be comparable to that used by other companies due to differences in methods of calculation. Adjusted Basic Earnings per Common Unit is defined as Adjusted Net Income divided by the weighted average number of common units outstanding for each of the periods presented, basic and diluted.
EXHIBIT 4
Navios Maritime Partners L.P. Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
Three Month Period Ended March 31, 2022 Three Month Period Ended March 31, 2021 ($ ‘000) (unaudited) ($ ‘000) (unaudited) Net cash provided by operating activities $ 5,153 $ 16,177 Net increase in operating assets 53,956 16,975 Net decrease/ (increase) in operating liabilities 60,013 (3,441 ) Net interest cost 13,225 5,729 Amortization and write-off of deferred financing cost (1,324 ) (1,290 ) Amortization of operating lease right-of-use asset 211 (255 ) Non-cash accrued interest income and amortization of deferred revenue (5,074 ) 393 Stock-based compensation (42 ) (118 ) Loss on sale of vessels — (511 ) Bargain gain — 44,053 Equity in net earnings of affiliated companies — 80,839 EBITDA $ 126,118 $ 158,551 Equity in net earnings of affiliated companies — (80,839 ) Bargain gain — (44,053 ) Adjusted EBITDA $ 126,118 $ 33,659
Three Month Period Ended March 31, 2022 Three Month Period Ended March 31, 2021 ($ ‘000) (unaudited) ($ ‘000) (unaudited) Net cash provided by operating activities $ 5,153 $ 16,177 Net cash (used in)/ provided by investing activities $ (21,669 ) $ 5,638 Net cash used in financing activities $ (44,734 ) $ (1,163 )
