- Revenue:
- $152.0 million for Q2 2021
- $217.1 million for H1 2021
- Net cash from operating activities:
- $61.1 million for Q2 2021
- $77.2 million for H1 2021
- Adjusted EBITDA:
- $90.4 million for Q2 2021
- $124.1 million for H1 2021
- Net Income
- $99.9 million for Q2 2021
- $236.6 million for H1 2021
- ~$615.0 million financing arranged year-to-date
- ~ $124.3 million to refinance 2021 maturities
- No significant maturities until 2023
- Significant fleet expansion
- 81% increase in number of vessels year-to-date
MONACO, July 27, 2021 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an international owner and operator of dry cargo vessels, today reported its financial results for the second quarter and six month period ended June 30, 2021.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the second quarter of 2021. During the second quarter, Navios Partners recorded revenue of $152.0 million and net income of $99.9 million.”
Angeliki Frangou continued, “Navios Partners is a top-10 US publicly listed shipping company with a dry cargo fleet of 98 vessels. Of our fleet, 56% are dry bulk vessels and 44% are containerships. This diversified fleet should not only insulate us from normal industry cyclicality, but create optionality as we leverage fundamentals across sectors and reduce cost of capital. Our balance sheet is also strong, with 27.3% net debt to book capitalization and no near term debt maturities.”
Fleet Update
- Acquisition of six 5,300 TEU Newbuilding Containerships (four plus two on Navios Partners’ option)
In July 2021, Navios Partners agreed to purchase six 5,300 TEU newbuilding containerships (four plus two optional) for a purchase price of $61.6 million each. The vessels are expected to be delivered into Navios Partners’ fleet during the second half of 2023 and 2024.The closing of the transaction is subject to completion of customary documentation.
- Acquisition of one Newbuilding Capesize Vessel
In June 2021, Navios Partners agreed to bareboat charter-in one Japanese newbuilding Capesize vessel from an unrelated third party. The vessel has approximately 180,000 dwt and is being bareboat chartered-in for 10 years. Navios Partners has the option to acquire the vessel starting at the end of year four until the end of the tenth year. The implied acquisition price is approximately $60.0 million and the annual effective interest rate is approximately 4.3%. The vessel is expected to be delivered into Navios Partners’ fleet during the second half of 2022.
- Acquisition of one Newbuilding Kamsarmax Vessel
In June 2021, Navios Partners agreed to acquire from an unrelated third party a newbuilding Kamsarmax vessel for a purchase price of $34.3 million. The vessel has approximately 81,000 dwt and is expected to be delivered into Navios Partners’ fleet during the first half of 2023.
- Acquisition of three Capesize Vessels
In June 2021, Navios Partners agreed to acquire from Navios Maritime Holdings Inc. (“Navios Holdings”) (NYSE:NM) the Navios Azimuth, a 2011-built Capesize vessel of 179,169 dwt, the Navios Ray, a 2012-built Capesize vessel of 179,515 dwt, and the Navios Bonavis, a 2009-built Capesize vessel of 180,022 dwt for an aggregate purchase price of $88.0 million. The Navios Bonavis and the Navios Ray were delivered into Navios Partners’ fleet in June 2021 and the Navios Azimuth was delivered in July 2021. The acquisition of these vessels was approved by the Conflicts Committee of the Board of Directors of Navios Partners.
- Sale of Two Vessels
In July 2021, Navios Partners agreed to sell the Harmony N, a 2006-built Containership of 2,824 TEU, to an unrelated third party for a net sale price of $28.7 million. The sale is expected to be completed during the third quarter of 2021.
In July 2021, Navios Partners agreed to sell the Navios Azalea, a 2005-built Panamax vessel of 74,759 dwt, to an unrelated third party for a net sale price of $12.7 million. The sale is expected to be completed during the third quarter of 2021.
- Current Fleet
Following the above transactions, on a fully delivered basis, our fleet would consist of 98 vessels, 55 dry bulk vessels and 43 containerships with a total capacity of 9.3 million dwt.
Financing Update
In March 2021, Navios Partners entered into a new credit facility with a commercial bank for a total amount of $58.0 million in order to refinance two dry bulk vessels and to finance the acquisition of the Navios Avior and the Navios Centaurus. The credit facility has an amortization profile of 8.8 years, matures in March 2026 and bears interest at LIBOR plus 3.0% per annum.
In January and March 2021, Navios Partners entered into bareboat charter-in agreements for four Japanese newbuilding Capesize vessels. The total implied amount financed for the three vessels is approximately $144.0 million and for the fourth is approximately $48.0 million and the implied effective interest rate is 4.4% and 5.0%, respectively.
In April 2021, Navios Partners entered into a new credit facility with a commercial bank for a total amount of $40.0 million in order to refinance the existing facility of two dry bulk vessels and to finance the acquisition of two containerships. The facility has an amortization profile of seven years, matures in the second quarter of 2025 and bears interest at LIBOR plus 2.85% per annum.
In April 2021, Navios Partners entered into a new credit facility with a commercial bank for a total amount of $8.9 million in order to finance the acquisition of one containership. The facility has an amortization profile of approximately seven years, matures in the fourth quarter of 2024 and bears interest at LIBOR plus 3.0% per annum.
In May 2021, Navios Partners entered into a new credit facility with a commercial bank for a total amount of up to $160.0 million in order to: (i) refinance its existing facility maturing in August 2021; (ii) refinance one dry bulk vessel; and (iii) finance the acquisition of one dry bulk vessel. The new facility has an amortization profile of approximately eight years, matures in the second quarter of 2025 and bears interest at LIBOR plus 3.10% per annum.
In June 2021, Navios Partners entered into a new credit facility with a commercial bank for a total amount of up to $43.0 million, in order to refinance the existing credit facilities of six dry bulk vessels. The facility has an amortization profile of approximately eight years, matures in the second quarter of 2026 and bears interest at LIBOR plus 300 bps per annum.
As discussed above, in June 2021, Navios Partners entered into a bareboat charter-in agreement for one Japanese newbuilding Capesize vessel. The implied amount financed for the vessel is approximately $48.0 million and the implied effective interest rate is 4.3%.
In June 2021, Navios Partners completed an $18.5 million sale and leaseback transaction with an unrelated third party, for a 2012-built Capesize vessel. The sale and leaseback transaction has a duration of nine years and an implied fixed interest rate of approximately 5.8%. Navios Partners has the option to buy the vessel at maturity.
In June 2021, Navios Partners completed a $15.0 million sale and leaseback transaction with an unrelated third party, for a 2009-built Capesize vessel. The sale and leaseback transaction has a duration of six years and an implied fixed interest rate of approximately 6.1%. Navios Partners has the option to buy the vessel at maturity.
In July 2021, Navios Partners agreed to enter into a $15.0 million sale and leaseback transaction with an unrelated third party, for a 2009-built Capesize vessel. The sale and leaseback transaction has a duration of six years and an implied fixed interest rate of approximately 6.1%. Navios Partners has the option to buy the vessel at maturity. The transaction remains subject to completion of definitive documentation and is expected to close in the third quarter of 2021. No assurance can be provided that the transaction will be completed in full or in part.
In July 2021, Navios Partners agreed to enter into a new credit facility with a commercial bank for a total amount of up to $18.0 million in order to finance the acquisition of one dry bulk vessel. The new facility will have an amortization profile of seven years and will mature in the third quarter of 2026 and will bear interest at LIBOR plus 2.85% per annum. The facility remains subject to completion of definitive documentation and is expected to close in the third quarter of 2021. No assurance can be provided that the transaction will be completed in full or in part.
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2021 of $0.05 per unit. The cash distribution is payable on August 12, 2021 to all unitholders of record as of August 9, 2021. 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.
Long-Term Cash Flow
Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of approximately 1.5 years. Navios Partners has currently contracted out 85.8% of its available days for the second half of 2021, 44.0% for 2022 and 25.6% for 2023, including index-linked charters. Excluding index-linked charters, Navios Partners expects to generate revenues of approximately $230.5 million, $349.0 million and $230.7 million, respectively. The average contracted daily charter-out rate for the fleet is $22,919 for the second half of 2021, $30,091 for 2022 and $32,420 for 2023.
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, 2021 and 2020. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings / (Loss) per Common Unit basic and diluted and Adjusted Net Income / (Loss) 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”).
| Three Month Period Ended June 30, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||||||
| (in $‘000 except per unit data) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
| Revenue | $ | 152,009 | $ | 46,549 | $ | 217,072 | $ | 93,039 | ||||
| Net Income / (Loss) | $ | 99,913 | $ | (14,641) | $ | 236,592 | $ | (25,365) | ||||
| Adjusted Net Income/ (loss) | $ | 99,913 | $ | (7,841) | (1) | $ | 111,700 | (2) | $ | (11,665) | (3) | |
| Net cash provided by operating activities | $ | 61,072 | $ | 26,738 | $ | 77,249 | $ | 47,675 | ||||
| EBITDA | $ | 90,424 | $ | 7,490 | $ | 248,975 | $ | 19,671 | ||||
| Adjusted EBITDA | $ | 90,424 | $ | 14,290 | (1) | $ | 124,083 | (2) | $ | 33,371 | (3) | |
| Earnings / (loss) per Common Unit basic | $ | 4.32 | $ | (1.32) | $ | 13.61 | $ | (2.29) | ||||
| Earnings / (loss) per Common Unit Diluted | $ | 4.31 | $ | (1.32) | $ | 13.54 | $ | (2.29) | ||||
| Adjusted Earnings/ (loss) per Common Unit basic | $ | 4.32 | $ | (0.71) | (1) | $ | 6.42 | (2) | $ | (1.05) | (3) | |
| Adjusted Earnings/ (loss) per Common Unit diluted | $ | 4.31 | $ | (0.71) | (1) | $ | 6.39 | (2) | $ | (1.05) | (3) | |
| (1) | Adjusted EBITDA, Adjusted Net Loss and Adjusted Loss per Common Unit basic and diluted for the three month period ended June 30, 2020 have been adjusted to exclude a $6.8 million impairment loss related to three containerships. |
| (2) | Adjusted EBITDA, Adjusted Net Income 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 affiliate companies; and (ii) a $44.1 million bargain purchase gain upon obtaining control over Navios Maritime Containers L.P. |
| (3) | Adjusted EBITDA, Adjusted Net Loss and Adjusted Loss per Common Unit basic and diluted for the six month period ended June 30, 2020 have been adjusted to exclude a (i) $6.9 million loss related to the other-than-temporary impairment recognized in the Navios Partners’ receivable from Navios Europe II; and (ii) $6.8 million impairment loss related to three containerships. |
Three month periods ended June 30, 2021 and 2020
Time charter and voyage revenues of Navios Partners for the three month period ended June 30, 2021 increased by approximately $105.5 million, or 226.6%, to $152.0 million, as compared to $46.5 million for the same period in 2020. 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, 2021, TCE rate increased by 81.2% to $20,296 per day, as compared to $11,202 per day in the same period in 2020. The available days of the fleet increased by 79.7% to 7,242 days for the three month period ended June 30, 2021, as compared to 4,029 in the same period in 2020.
EBITDA of Navios Partners for the three month period ended June 30, 2020 was affected by items described in the table above. Excluding these items, Adjusted EBITDA increased by approximately $76.1 million to $90.4 million for the three month period ended June 30, 2021, as compared to $14.3 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to a: (i) $105.5 million increase in time charter and voyage revenues; and (ii) $0.7 million decrease in equity in net loss of affiliate companies recorded in the second quarter of 2020. The above increase was partially mitigated by: (i) a $19.8 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) a $3.9 million increase in time charter voyage expenses; (iii) a $3.3 million increase in general and administrative expenses, mainly due to the increased fleet; (iv) a $2.8 million increase in other expense, net; and (v) an approximately $0.3 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 three month period ended June 30, 2021 was approximately $99.9 million as compared to $14.6 million net loss for the same period in 2020. Net income for the three month period ended June 30, 2020, was affected by items described in the table above. Excluding these items, adjusted net income for the three month period ended June 30, 2021 amounted to $99.9 million as compared to $7.8 million loss for the three month period ended June 30, 2020. The increase in adjusted net income of approximately $107.8 million was due to: (i) an approximately $76.1 million increase in Adjusted EBITDA; (ii) a $42.0 million income from the amortization of the unfavorable lease terms recorded in the three month period ended June 30, 2021; and (iii) a $0.6 million increase in interest income. The above increase was partially mitigated by: (i) an $8.5 million increase in depreciation and amortization expense; (ii) a $1.4 million increase in amortization for deferred drydock, special survey costs and other capitalized items; and (iii) an approximately $1.0 million increase in interest expense and finance cost.
Six month periods ended June 30, 2021 and 2020
Time charter and voyage revenues of Navios Partners for the six month period ended June 30, 2021 increased by approximately $124.0 million, or 133.3%, to $217.1 million, as compared to $93.0 million for the same period in 2020. 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, 2021, TCE rate increased by 66.8% to $18,276 per day, as compared to $10,957 per day in the same period in 2020. The available days of the fleet increased by 41.4% to 11,494 days for the six month period ended June 30, 2021, as compared to 8,126 in the same period in 2020.
EBITDA of Navios Partners for the six month period ended June 30, 2021 and 2020 was affected by items described in the table above. Excluding these items, Adjusted EBITDA increased by $90.7 million to $124.1 million for the six month period ended June 30, 2021, as compared to $33.4 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to an approximate $124.0 million increase in time charter and voyage revenues. The above increase was partially mitigated by a: (i) $20.6 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) $4.1 million increase in general and administrative expenses, mainly due to the increased fleet; (iii) $3.6 million increase in other expense, net; (iv) $3.3 million increase in time charter voyage expenses; (v) $1.0 million equity in net earnings of affiliate companies, recorded in the first half of 2020; (vi) $0.5 million net loss on sale of vessels; and (vii) $0.2 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, 2021 was approximately $236.6 million as compared to $25.4 million net loss for the same period in 2020. Net income was affected by items described in the table above. Excluding these items, adjusted net income for the six month period ended June 30, 2021 amounted to $111.7 million compared to $11.7 million loss for the six month period ended June 30, 2020. The increase in adjusted net income of approximately $123.4 million was due to a: (i) $90.7 million increase in Adjusted EBITDA; (ii) $42.0 million income from the amortization of the unfavorable lease terms recorded in the six month period ended June 30, 2021; and (iii) $0.5 million increase in interest income. The above increase was partially mitigated by: (i) a $7.9 million increase in depreciation and amortization expense; and (ii) an approximately $1.9 million increase in amortization for deferred drydock, special survey costs and other capitalized items.
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, 2021 and 2020.
| Three Month Period Ended June 30, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Available Days (1) | 7,242 | 4,029 | 11,494 | 8,126 | ||||||||
| Operating Days (2) | 7,190 | 3,998 | 11,391 | 7,993 | ||||||||
| Fleet Utilization (3) | 99.3% | 99.3% | 99.1% | 98.4% | ||||||||
| Time Charter Equivalent Combined (per day) (4) | $ | 20,296 | $ | 11,202 | $ | 18,276 | $ | 10,957 | ||||
| Time Charter Equivalent Drybulk (per day) (4) | $ | 19,736 | $ | 9,421 | $ | 16,516 | $ | 8,826 | ||||
| Time Charter Equivalent Containers (per day) (4) | $ | 20,921 | $ | 17,306 | $ | 21,412 | $ | 18,342 | ||||
| Vessels operating at period end | 87 | 51 | 87 | 51 | ||||||||
| (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 and time charter revenues 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, July 27, 2021 to discuss the results for the second quarter and six month period ended June 30, 2021.
Call Date/Time: Tuesday, July 27, 2021 at 8:30 am ET
Call Title: Navios Partners Q2 2021 Financial Results Conference Call
US Dial In: +1.877.876.9174
International Dial In: +1.785.424.1669
Conference ID: NMMQ221
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. 888-566-0154
International Replay Dial In: +1. 402-220-9182
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 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 including Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to have a dividend 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. 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, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it; 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 cargo shipping sector in general and the demand for our Panamax, Capesize, Ultra-Handymax and Containerships 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, 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 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@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, 2021 | December 31, 2020 | |||||
| ASSETS | (unaudited) | (unaudited) | ||||
| Cash and cash equivalents, including restricted cash | $ | 232,853 | $ | 30,728 | ||
| Other current assets | 49,110 | 30,052 | ||||
| Vessels, net | 1,930,477 | 1,041,138 | ||||
| Other non-current assets | 123,503 | 105,351 | ||||
| Total assets | $ | 2,335,943 | $ | 1,207,269 | ||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||
| Other current liabilities | $ | 52,696 | $ | 51,417 | ||
| Total borrowings, net (including current and non-current) | 795,510 | 486,857 | ||||
| Other non-current liabilities | 225,694 | 14,165 | ||||
| Total partners’ capital | 1,262,043 | 654,830 | ||||
| Total liabilities and partners’ capital | $ | 2,335,943 | $ | 1,207,269 | ||
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, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Time charter and voyage revenues | $ | 152,009 | $ | 46,549 | $ | 217,072 | $ | 93,039 | ||||
| Time charter and voyage expenses | (5,869) | (1,940) | (8,364) | (5,038) | ||||||||
| Direct vessel expenses | (3,989) | (2,385) | (7,143) | (4,934) | ||||||||
| Vessel operating expenses (management fees entirely through related parties transactions) | (41,771) | (21,930) | (64,733) | (44,135) | ||||||||
| General and administrative expenses | (10,319) | (6,983) | (15,226) | (11,128) | ||||||||
| Depreciation and amortization of intangible assets | (22,120) | (13,663) | (35,207) | (27,300) | ||||||||
| Amortization of unfavorable lease terms | 42,026 | — | 42,026 | — | ||||||||
| Loss on sale of vessels | — | — | (511) | — | ||||||||
| Vessels impairment loss | — | (6,800) | — | (6,800) | ||||||||
| Interest expense and finance cost | (7,334) | (6,275) | (13,178) | (13,219) | ||||||||
| Interest income | 744 | 176 | 859 | 371 | ||||||||
| Impairment of receivable in affiliated company | — | — | — | (6,900) | ||||||||
| Other expense, net | (3,464) | (680) | (3,895) | (289) | ||||||||
| Equity in net earnings/(losses) of affiliate companies | — | (710) | 80,839 | 968 | ||||||||
| Bargain purchase gain | — | — | 44,053 | — | ||||||||
| Net income / (loss) | $ | 99,913 | $ | (14,641) | $ | 236,592 | $ | (25,365) | ||||
Earnings/ (loss) per unit:
| Three Month Period Ended June 30, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Earnings / (loss) per unit: | ||||||||||||
| Earnings / (loss) per common unit, basic | $ | 4.32 | $ | (1.32) | $ | 13.61 | $ | (2.29) | ||||
| Earnings / (loss) per common unit, diluted | $ | 4.31 | $ | (1.32) | $ | 13.54 | $ | (2.29) | ||||
NAVIOS MARITIME PARTNERS L.P.
Other Financial Information
(Expressed in thousands of U.S. Dollars except unit data)
| Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||
| Net cash provided by operating activities | $ | 77,249 | $ | 47,675 | ||
| Net cash used in investing activities | $ | (133,538) | $ | (39,664) | ||
| Net cash provided by/ (used in) financing activities | $ | 258,414 | $ | (8,598) | ||
| Increase/ (decrease) in cash, cash equivalents and restricted cash | $ | 202,125 | $ | (587) | ||
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 Azalea (1) | Panamax | 2005 | 74,759 | |||
| 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 Altair I | Panamax | 2006 | 74,475 | |||
| 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 Vessels to be Delivered | Type | Delivery date | Capacity (DWT) /TEU | |||
| TBN IV | Panamax | H2 2022 | 81,000 | |||
| TBN VI | Panamax | H1 2023 | 81,000 |
| Owned Containerships | Type | Built | Capacity (TEU) | |||
| Harmony N (1) | Containership | 2006 | 2,824 | |||
| Navios Summer | Containership | 2006 | 3,450 | |||
| Matson Oahu (ex. Navios Verano) | 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 | Containership | 2006 | 8,204 | |||
| Navios Unite | Containership | 2006 | 8,204 | |||
| Protostar N | Containership | 2007 | 2,741 | |||
| Navios Spring | Containership | 2007 | 3,450 | |||
| Navios Amaranth | 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 Dedication (1) | 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 | |||
| 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 Containerships to be delivered | Type | Delivery Date | Capacity (TEU) | |||
| 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 XII (optional vessel) | Containership | H2 2024 | 5,300 | |||
| TBN XIII (optional vessel) | Containership | H2 2024 | 5,300 |
| 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 |
| 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 | H2 2022 | 180,000 | Yes | ||||
| TBN V | Capesize | H1 2023 | 180,000 | Yes | ||||
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings/ (Loss) 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 (loss)/ income attributable to Navios Partners’ unitholders before interest and finance costs, before 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 reconcile 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 affiliate companies; (vi) impairment charges; (vii) non-cash accrued interest income and amortization of deferred revenue; (viii) stock-based compensation expense; (ix) non-cash accrued interest income from receivable from affiliate companies; (x) amortization of operating lease right-of-use asset; and (xi) gain/(loss) on sale of assets and 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.
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.
EXHIBIT 4
Navios Maritime Partners L.P. Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
| Three Month Period Ended June 30, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | ||||||||||
| ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ||||||||||
| Net cash provided by operating activities | $ | 61,072 | $ | 26,738 | $ | 77,249 | $ | 47,675 | |||||
| Net increase / (decrease) in operating assets | 13,125 | 4,479 | 30,100 | (3,767) | |||||||||
| Net decrease / (increase) in operating liabilities | 8,967 | (21,739) | 5,249 | (23,181) | |||||||||
| Net interest cost | 6,590 | 6,099 | 12,319 | 12,848 | |||||||||
| Amortization and write-off of deferred financing cost | (278) | (499) | (1,568) | (1,018) | |||||||||
| Amortization of operating lease right-of-use asset | 39 | (234) | 61 | (459) | |||||||||
| Non cash accrued interest income and amortization of deferred revenue | 1,025 | 394 | 1,418 | 788 | |||||||||
| Stock-based compensation expense | (116) | (238) | (234) | (483) | |||||||||
| Loss on sale of vessels | — | — | (511) | — | |||||||||
| Vessels impairment loss | — | (6,800) | — | (6,800) | |||||||||
| Bargain purchase gain | — | — | 44,053 | — | |||||||||
| Impairment of receivable in affiliate company | — | — | — | (6,900) | |||||||||
| Equity in net earnings of affiliate companies | — | (710) | 80,839 | 968 | |||||||||
| EBITDA | $ | 90,424 | $ | 7,490 | $ | 248,975 | $ | 19,671 | |||||
| Equity in net earnings of affiliate companies | — | — | (80,839) | — | |||||||||
| Bargain purchase gain | — | — | (44,053) | — | |||||||||
| Impairment of receivable in affiliate company | — | — | — | 6,900 | |||||||||
| Vessels impairment loss | — | 6,800 | — | 6,800 | |||||||||
| Adjusted EBITDA | $ | 90,424 | $ | 14,290 | $ | 124,083 | $ | 33,371 | |||||
| Three Month Period Ended June 30, 2021 | Three Month Period Ended June 30, 2020 | Six Month Period Ended June 30, 2021 | Six Month Period Ended June 30, 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net cash provided by operating activities | $ | 61,072 | $ | 26,738 | $ | 77,249 | $ | 47,675 | ||||||||
| Net cash used in investing activities | $ | (139,176 | ) | $ | (36,327 | ) | $ | (133,538 | ) | $ | (39,664 | ) | ||||
| Net cash provided by / (used in) financing activities | $ | 259,577 | $ | 8,257 | $ | 258,414 | $ | (8,598 | ) | |||||||
