Navios Maritime Partners L.P. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2022
07/28/2022 - 06:33 AM
Revenue: $280.7 million for Q2 2022 $517.3 million for H1 2022 Net Income: $118.2 million for Q2 2022 $203.8 million for H1 2022 Net cash from operating activities: $142.0 million for Q2 2022 $147.2 million for H1 2022 EBITDA: $163.5 million for Q2 2022 $289.6 million for H1 2022 Fleet update YTD $1.3 billion acquisition of vessels $835.0 million acquisition of 36-vessel drybulk fleet $241.2 million acquisition of two newbuilding LNG dual-fuel Containerships $234.0 million acquisition of four newbuilding LR2/Aframax tankers $100.0 million unit repurchase program $0.05 per unit cash distribution for Q2 2022 MONACO, July 28, 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 second quarter and six month period ended June 30, 2022.
Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “We are pleased to report our results for the second quarter of 2022 in which we recorded $280.7 million of revenue and $118.2 million of net income. Net income amounts to $3.84 per common unit for the quarter and $6.62 for the first six months of 2022.”
Angeliki Frangou continued, “We are also pleased with the transaction we announced last night involving the acquisition of a 36-vessel drybulk fleet for $835.0 million. Navios Partners is the second largest US-listed maritime company and the third largest US-listed drybulk company, by number of vessels.”
Angeliki Frangou also stated, “Our board authorized a unit repurchase program for up to $100.0 million. At current prices, this program would cover approximately 17% of the public float. The timing of the repurchases and the exact number of units to be repurchased shall be determined by the Company based on market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. Total return to investors, we believe, is the way to measure our success, and will use this tool as a means of achieving this result for our unitholders.”
Fleet Update
Acquired a 36-Vessel Drybulk Fleet for $835.0 million On July 26, 2022 Navios Partners agreed to acquire a 36-vessel drybulk fleet for a gross purchase price of $835.0 million, including the assumption of $441.6 million of bank liabilities, bareboat obligations and finance leasing obligations, subject to debt and working capital adjustments (the “Transaction”), from Navios Maritime Holdings Inc. (“Navios Holdings”) (NYSE:NM).The fleet consists of 26 owned vessels and 10 chartered-in vessels (all with purchase options) with a total capacity of 3.9 million dwt and an average age of 9.6 years.
Following the completion of the Transaction, Navios Partners will own and operate a fleet comprised of 90 drybulk vessels, 49 containerships and 49 tanker vessels, including 22 newbuilding vessels to be delivered through the first quarter of 2025.
Approvals
The Transaction was negotiated and unanimously approved by the Conflicts Committee of Navios Partners. The Transaction was also unanimously approved by full board of directors of Navios Partners.
Advisors
Jefferies LLC and S. Goldman Advisors LLC served as financial advisors to the Conflicts Committee of Navios Partners. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor.
Acquisition of Two Newbuilding LNG Dual Fuel 7,700 TEU Containerships In June 2022, Navios Partners agreed to purchase two newbuilding liquified natural gas (LNG) dual fuel 7,700 TEU containerships, for an aggregate purchase price of $241.2 million.
The vessels have the ability to operate on either LNG or conventional marine fuels. They are expected to be delivered into the fleet in the fourth quarter of 2024. The closing of the transaction is subject to completion of customary documentation. Navios Partners has been granted a two-month option for two additional LNG dual fuel 7,700 TEU containerships at the same terms, delivering in the second quarter of 2025.
Vessel charters
The two containerships, have been chartered-out for 12 years, at an average net rate of $42,288 per day. The charter agreement provides for de-escalating payments as follows:
Year 1-3 : USD 57,213 net per day Year 4-6 : USD 52,238 net per day Year 7-8 : USD 37,313 net per day Year 9-10 : USD 27,363 net per day Year 11-12 : USD 24,875 net per day The charterer has an option to extend the charter for an additional two years at a net rate of $24,875 per day.
In connection with this transaction, the charterer agreed to amend existing charters on two 6,800 TEU containerships currently expiring in the fourth quarter of 2023. Under the amended terms, the charter period will be extended for seven months at $43,944 net per day. However, if Navios Partners exercises its existing option to extend the charter term for five years (at a net rate of $21,083 per day) the charter period will also be extended for eight- and one-half months at $30,119 net per day.
$100.0 million unit repurchase program
In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $100.0 million of the Company’s common units. Common unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners’ management based upon market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. The program does not require any minimum repurchase or any specific number of common units and may be suspended or reinstated at any time in the Company’s discretion and without notice. The Board of Directors will review the program periodically.
Financing Update
In July 2022, Navios Partners agreed to enter into a new credit facility with a leading European commercial bank for a total amount of up to $86.2 million in order to finance the acquisition of two newbuilding 5,300 TEU containerships. The credit facility: (i) has an amortization profile of approximately 16 years; (ii) matures seven years after the drawdown; and (iii) bears interest at Secured Overnight Financing Rate (“SOFR”) plus 200 bps per annum. The facility remains subject to completion of definitive documentation and is expected to close in the third quarter of 2022.
In June 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 four of its vessels and for general corporate purposes. The credit facility: (i) has an amortization profile of approximately seven years; (ii) matures in the second quarter of 2027; and (iii) bears interest at SOFR plus 225 bps per annum.
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2022 of $0.05 per unit. The cash distribution will be payable on August 12, 2022 to all unitholders of record as of August 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 has entered into short, medium and long-term time charter-out and freight agreements for its vessels with a remaining average term of approximately 1.6 years. Navios Partners has currently fixed 51.3% of its available days for the remaining six months of 2022 and 24.9% for 2023. Navios Partners expects to generate contracted revenue of approximately $427.7 million and $564.6 million for the remaining six months of 2022 and for 2023, respectively. The average expected daily charter-out rate for the fleet is $28,966 and $36,822 for the remaining six 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 and six month periods ended June 30, 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 June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (in $‘000 except per unit data) (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 280,661 $ 152,009 $ 517,278 $ 217,072 Net Income $ 118,160 $ 99,913 $ 203,825 $ 236,592 Adjusted Net Income $ 118,160 $ 99,913 $ 203,825 $ 111,700 (1) Net cash provided by operating activities $ 142,010 $ 61,072 $ 147,163 $ 77,249 EBITDA $ 163,478 $ 90,424 $ 289,596 $ 248,975 Adjusted EBITDA $ 163,478 $ 90,424 $ 289,596 $ 124,083 (1) Earnings per Common Unit basic $ 3.84 $ 4.32 $ 6.62 $ 13.61 Earnings per Common Unit diluted $ 3.83 $ 4.31 $ 6.61 $ 13.54 Adjusted Earnings per Common Unit basic $ 3.84 $ 4.32 $ 6.62 $ 6.42 (1) Adjusted Earnings per Common Unit diluted $ 3.83 $ 4.31 $ 6.61 $ 6.39 (1)
(1) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the six month period ended June 30, 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 gain upon obtaining control over Navios Containers.
Three month periods ended June 30, 2022 and 2021
Time charter and voyage revenues for the three month period ended June 30, 2022 increased by $128.7 million, or 84.7%, to $280.7 million, as compared to $152.0 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 June 30, 2022, the time charter and voyage revenues are affected by $11.8 million relating to the straight line effect of the containerships charters with de-escalating rates. The TCE rate increased by 17.4% to $23,823 per day, as compared to $20,296 per day for the same period in 2021. The available days of the fleet increased by 55.6% to 11,269 days for the three month period ended June 30, 2022, as compared to 7,242 days for the same period in 2021 mainly due to the NMCI Merger and the NNA Merger.
EBITDA for the three month period ended June 30, 2022 amounted to $163.5 million as compared to $90.4 million for the same period in 2021. The increase in EBITDA was primarily due to a: (i) $128.7 million increase in time charter and voyage revenues; and (ii) $2.3 million decrease in other expense, net. The above increase was partially mitigated by a: (i) $32.2 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) $15.8 million increase in time charter and voyage expenses; (iii) $6.0 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (iv) $3.9 million increase in general and administrative expenses, mainly due to the increased fleet.
Net Income for the three month period ended June 30, 2022 amounted to $118.2 million as compared to $99.9 million for the same period in 2021. The increase in Net Income was primarily due to a $73.1 million increase in EBITDA. The above increase was partially mitigated by a: (i) $24.4 million decrease in the amortization of the unfavorable lease terms; (ii) $19.6 million increase in depreciation and amortization expense; (iii) $7.2 million increase in interest expense and finance cost, net; (iv) $2.9 million increase in amortization of deferred drydock, special survey costs and other capitalized items; and (v) $0.7 million decrease in interest income.
Six month periods ended June 30, 2022 and 2021
Time charter and voyage revenues of Navios Partners for the six month period ended June 30, 2022 increased by $300.2 million, or 138.3%, to $517.3 million, as compared to $217.1 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 TCE rate. For the six month period ended June 30, 2022, the time charter and voyage revenues are affected by $16.5 million relating to the straight line effect of the containerships charters with de-escalating rates. The TCE rate increased by 21.0% to $22,107 per day, as compared to $18,276 per day in the same period in 2021. The available days of the fleet increased by 95.7% to 22,497 days for the six month period ended June 30, 2022, as compared to 11,494 days in the same period in 2021.
EBITDA of Navios Partners for the six month period ended June 30, 2022 and 2021 was affected by items described in the table above. Excluding these items, Adjusted EBITDA increased by $165.5 million to $289.6 million for the six month period ended June 30, 2022, as compared to $124.1 million for the same period in 2021. The increase in Adjusted EBITDA was primarily due to a: (i) $300.2 million increase in time charter and voyage revenues; (ii) $1.5 million decrease in other expense, net; and (iii) $0.5 million decrease in net loss on sale of vessels. The above increase was partially mitigated by: (i) an $82.5 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) a $30.5 million increase in time charter voyage expenses; (iii) a $12.9 million increase in general and administrative expenses, mainly due to the increased fleet; and (iv) a $10.8 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).
Net Income of Navios Partners for the six month period ended June 30, 2022 and 2021 was affected by items described in the table above. Excluding these items, adjusted net income for the six month period ended June 30, 2022 amounted to $203.8 million compared to $111.7 million for the six month period ended June 30, 2021. The increase in Adjusted Net Income of $92.1 million was due to a $165.5 million increase in Adjusted EBITDA. The above increase was partially mitigated by a: (i) $49.4 million increase in depreciation and amortization expense; (ii) $14.5 million increase in interest expense and finance cost, net; (iii) $6.0 million increase in amortization for deferred drydock, special survey costs and other capitalized items; (iv) $2.6 million decrease in the amortization of the unfavorable lease terms; and (v) $0.9 million decrease in interest income.
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, 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 June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Available Days (1) 11,269 7,242 22,497 11,494 Operating Days (2) 11,151 7,190 22,223 11,391 Fleet Utilization (3) 99.0% 99.3% 98.8% 99.1% TCE Combined (per day) (4) $ 23,823 $ 20,296 $ 22,107 $ 18,276 TCE Drybulk (per day) (4) $ 24,721 $ 19,736 $ 22,311 $ 16,516 TCE Containers (per day) (4) $ 31,613 $ 20,921 $ 29,417 $ 21,412 TCE Tankers (per day) (4) $ 16,391 $ — $ 15,864 $ — Vessels operating at period end 128 87 128 87
(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 Thursday, July 28, 2022 to discuss the results for the second quarter and six month period ended June 30, 2022.
Call Date/Time: Thursday, July 28, 2022 at 8:30 am ET Call Title: Navios Partners Q2 2022 Financial Results Conference Call US Dial In: +1.800.225.9448 International Dial In: +1.203.518.9708 Conference ID: NMMQ222
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: +1.800.839.3413 International Replay Dial In: +1.402.220.7236
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 completion of the Transaction and ability to realize the projected advantages of the Transaction, TCE rates and Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, 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 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 drybulk, containerships and tanker vessels in particular, fluctuations in charter rates for drybulk, 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. +1 (212) 906 8645Investors@navios-mlp.com
Nicolas Bornozis Capital Link, Inc. +1 (212) 661 7566naviospartners@capitallink.com EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE SHEET DATA (Expressed in thousands of U.S. Dollars except unit data)
June 30, 2022 (unaudited) December 31, 2021 (unaudited) ASSETS Cash and cash equivalents, including restricted cash $ 174,624 $ 169,446 Other current assets 118,106 56,894 Vessels, net 2,786,914 2,852,570 Other non-current assets 599,537 544,389 Total assets $ 3,679,181 $ 3,623,299 LIABILITIES AND PARTNERS’ CAPITAL Other current liabilities $ 88,823 $ 140,368 Total borrowings, net (including current and non-current) 1,287,343 1,361,709 Other non-current liabilities 332,465 351,497 Total partners’ capital 1,970,550 1,769,725 Total liabilities and partners’ capital $ 3,679,181 $ 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 June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Time charter and voyage revenues $ 280,661 $ 152,009 $ 517,278 $ 217,072 Time charter and voyage expenses (21,718 ) (5,869 ) (38,861 ) (8,364 ) Direct vessel expenses (12,920 ) (3,989 ) (24,113 ) (7,143 ) Vessel operating expenses (73,989 ) (41,771 ) (147,161 ) (64,733 ) General and administrative expenses (14,170 ) (10,319 ) (28,086 ) (15,226 ) Depreciation and amortization of intangible assets (41,684 ) (22,120 ) (84,550 ) (35,207 ) Amortization of unfavorable lease terms 17,587 42,026 39,426 42,026 Loss on sale of vessels — — — (511 ) Interest expense and finance cost, net (14,522 ) (7,334 ) (27,749 ) (13,178 ) Interest income 22 744 24 859 Other expense, net (1,107 ) (3,464 ) (2,383 ) (3,895 ) Equity in net earnings of affiliated companies — — — 80,839 Bargain gain — — — 44,053 Net income $ 118,160 $ 99,913 $ 203,825 $ 236,592
Earnings per unit:
Three Month Period Ended June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Earnings per unit: Earnings per common unit, basic $ 3.84 $ 4.32 $ 6.62 $ 13.61 Earnings per common unit, diluted $ 3.83 $ 4.31 $ 6.61 $ 13.54
NAVIOS MARITIME PARTNERS L.P. Other Financial Information (Expressed in thousands of U.S. Dollars except unit data)
Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (in thousands of U.S. dollars) (unaudited) (unaudited) Net cash provided by operating activities $ 147,163 $ 77,249 Net cash used in investing activities $ (61,860 ) $ (133,538 ) Net cash (used in)/ provided by financing activities $ (80,125 ) $ 258,414 Increase in cash, cash equivalents and restricted cash $ 5,178 $ 202,125
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 Primavera Panamax 2022 82,003 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 Zim Baltimore (ex. 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 Charter-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 Nave Celeste VLCC 2022 313,418 Yes
Bareboat Charter-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 VI Capesize H1 2023 180,000 Yes TBN IV Capesize H1 2023 180,000 Yes
Owned to be delivered Type Delivery Date Capacity DWT / (TEU) TBN V Panamax H1 2023 81,000 TBN VII Containership H2 2023 5,300 TBN VIII Containership H2 2023 5,300 TBN XIII Containership H2 2023 5,300 TBN IX Containership H1 2024 5,300 TBN X Containership H1 2024 5,300 TBN XIV Containership H1 2024 5,300 TBN XI Containership H2 2024 5,300 TBN XII Containership H2 2024 5,300 TBN XV Containership H2 2024 5,300 TBN XVI Containership H2 2024 5,300 TBN XXII Containership H2 2024 7,700 TBN XXI Containership H2 2024 7,700 TBN XVII Aframax/LR2 H1 2024 115,000 TBN XVIII Aframax/LR2 H2 2024 115,000 TBN XIX Aframax/LR2 H2 2024 115,000 TBN XX Aframax/LR2 H1 2025 115,000
36-Vessel Drybulk Fleet Acquired
Owned Vessels Type Year Built Capacity DWT Navios Ulysses Ultra Handymax 2007 55,728 Navios Celestial Ultra Handymax 2009 58,063 Navios Vega Ultra Handymax 2009 58,792 Navios Taurus Panamax 2005 76,596 Navios Asteriks Panamax 2005 76,801 N Amalthia Panamax 2006 75,318 Navios Galileo Panamax 2006 76,596 N Bonanza Panamax 2006 76,596 Rainbow N Panamax 2011 79,642 Jupiter N Post-Panamax 2011 93,062 Navios Sky Kamsarmax 2015 82,056 Navios Herakles I Kamsarmax 2019 82,036 Navios Uranus Kamsarmax 2019 81,516 Navios Galaxy II Kamsarmax 2020 81,789 Navios Felicity I Kamsarmax 2020 81,946 Navios Magellan II Kamsarmax 2020 82,037 Navios Stellar Capesize 2009 169,001 Navios Happiness Capesize 2009 180,022 Navios Phoenix Capesize 2009 180,242 Navios Lumen Capesize 2009 180,661 Navios Antares Capesize 2010 169,059 Navios Etoile Capesize 2010 179,234 Navios Bonheur Capesize 2010 179,259 Navios Altamira Capesize 2011 179,165 Navios Canary Capesize 2015 180,528 Navios Corali Capesize 2015 181,249
Chartered-in Fleet with purchase options Type Year Built Capacity (DWT) Purchase Option Navios Lyra Handysize 2012 34,718 Yes Navios Venus Ultra Handymax 2015 61,339 Yes Navios Amber Kamsarmax 2015 80,994 Yes Navios Coral Kamsarmax 2016 84,904 Yes Navios Citrine Kamsarmax 2017 81,626 Yes Navios Dolphin Kamsarmax 2017 81,630 Yes Navios Gemini Kamsarmax 2018 81,704 No(1 ) Navios Horizon I Kamsarmax 2019 81,692 No(1 ) Navios Felix Capesize 2016 181,221 Yes Navios Obeliks Capesize 2012 181,415 Yes
(1) Purchase option in the form of the right of first refusal and profit share on sale of vessel.
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 finance costs and discount; (v) equity in net earnings of affiliated companies; (vi) non-cash amortization of deferred revenue and straight line; (vii) stock-based compensation; (viii) amortization of operating lease assets/ liabilities; (ix) gain/(loss) on sale of assets and (x) bargain 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 June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 ($ ‘000) (unaudited) ($ ‘000) (unaudited) ($ ‘000) (unaudited) ($ ‘000) (unaudited) Net cash provided by operating activities $ 142,010 $ 61,072 $ 147,163 $ 77,249 Net increase in operating assets 34,561 13,125 88,517 30,100 Net (increase)/ decrease in operating liabilities (8,033 ) 8,967 51,980 5,249 Net interest cost 14,500 6,590 27,725 12,319 Amortization and write-off of deferred finance costs and discount (1,353 ) (278 ) (2,677 ) (1,568 ) Amortization of operating lease assets/ liabilities 211 39 422 61 Non-cash amortization of deferred revenue and straight line (18,378 ) 1,025 (23,452 ) 1,418 Stock-based compensation (40 ) (116 ) (82 ) (234 ) Loss on sale of vessels — — — (511 ) Bargain gain — — — 44,053 Equity in net earnings of affiliate companies — — — 80,839 EBITDA $ 163,478 $ 90,424 $ 289,596 $ 248,975 Equity in net earnings of affiliated companies — — — (80,839 ) Bargain gain — — — (44,053 ) Adjusted EBITDA $ 163,478 $ 90,424 $ 289,596 $ 124,083
Three Month Period Ended June 30, 2022 Three Month Period Ended June 30, 2021 Six Month Period Ended June 30, 2022 Six Month Period Ended June 30, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Net cash provided by operating activities $ 142,010 $ 61,072 $ 147,163 $ 77,249 Net cash used in investing activities $ (40,191 ) $ (139,176 ) $ (61,860 ) $ (133,538 ) Net cash (used in) / provided by financing activities $ (35,391 ) $ 259,577 $ (80,125 ) $ 258,414