Navios Maritime Partners L.P. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2021
- Revenue:
- $228.0 million for Q3 2021
- $445.0 million for 9M 2021
- Net cash from operating activities:
- $70.9 million for Q3 2021
- $148.2 million for 9M 2021
- Net Income:
- $162.1 million for Q3 2021
- $398.6 million for 9M 2021
- Adjusted EBITDA:
- $145.2 million for Q3 2021
- $269.8 million for 9M 2021
- Merger with Navios Maritime Acquisition Corporation completed on October 15, 2021
- Entry in crude and product tankers segments
- 163% increase in number of vessels year-to-date
- Secured long-term time charters for 10 containerships
- ~$690 million contracted revenue
- $0.05 per unit cash distribution for Q3 2021
MONACO, Nov. 10, 2021 (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 third quarter and nine month periods ended September 30, 2021.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the third quarter of 2021. During the third quarter of 2021, Navios Partners recorded Revenue of $228.0 million, Adjusted EBITDA of $145.2 million and Net Income of $162.1 million.”
Angeliki Frangou continued, “Navios Partners is one of the largest U.S. publicly-listed shipping companies, operating across three segments, with 15 vessel types, servicing more than 10 end markets. Diversification creates resiliency in our overall business model, enabling us to mitigate individual segment volatility, while also allowing us to leverage each sector’s unique fundamentals. Diversification also creates significant flexibility in chartering, S&P and financing activities.
We have been taking advantage of robust markets through our chartering activity. In our containership segment, we have secured a number of long-term charters and have thus far fixed 88.1% of available containership days for 2022 and developed $1.6 billion in total contracted revenue through 2030. In our dry bulk segment, we continue to benefit from a strong spot market, with most available days exposed to market. We are positioned to fix vessels once attractive period charters are available. Lastly, our tanker segment is benefiting from existing long-term contracts and a materially improving market. We hope that the tanker market continues to strengthen.”
Merger with Navios Maritime Acquisition Corporation
On October 15, 2021, Navios Partners completed its merger (the “Merger”) with Navios Maritime Acquisition Corporation (“Navios Acquisition”). As a result of the Merger, Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding common unit of Navios Acquisition that was held by a unitholder other than Navios Partners, Navios Acquisition and their respective subsidiaries was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result of the Merger, 3,388,226 common units of Navios Partners were issued to former public unitholders of Navios Acquisition. On August 25, 2021, Navios Partners purchased 44.1 million shares of Navios Acquisition, thereby acquiring a controlling interest in Navios Acquisition, and the results of operations of Navios Acquisition are included in Navios Partners' consolidated statements of operations commencing on August 26, 2021.
Fleet Update
On October 29, 2021, Navios Partners completed the sale of the Navios Altair I, a 2006-built Panamax vessel of 74,475 dwt to an unrelated third party for a sale price of $14.0 million.
Following the completion of the Merger, Navios Partners owns and operates a fleet comprised of 54 dry bulk vessels, 43 containerships and 45 tanker vessels.
Financing Update
Navios Partners is in advanced discussions with a commercial bank for a new credit facility of up to $72.7 million for the refinancing of: (i) $20.0 million maturing in December 2021; (ii) $33.2 million maturing in the second and third quarter of 2022; and (iii) $26.7 million maturing in the second quarter of 2024. The new facility is expected to: (i) have an amortization profile of eight years; (ii) mature in the fourth quarter of 2026; and (iii) bear interest at LIBOR plus 2.75% per annum. The transaction is expected to close in the fourth quarter of 2021. No assurance can be provided that the definitive agreement will be executed or that the refinancing will be consummated in whole or in part.
In each of September and October 2021, Navios Partners agreed to enter into a bareboat charter-in agreement for a newbuilding Kamsarmax vessel of approximately 81,000 dwt. The total amount financed for the two vessels is approximately $52.7 million and the implied effective interest rate for each is 4.8% and 4.3%, respectively.
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2021 of $0.05 per unit. The cash distribution is payable on November 12, 2021 to all unitholders of record as of November 8, 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.
Secured Long-term Time Charters for 10 Containerships
Navios Partners has secured new long-term time charters for 10 containerships which are expected to generate approximately $690.0 million contracted revenue.
- Six 5,300 TEU newbuilding containerships, expected to be delivered in 2023 and 2024, have been chartered-out for 60 – 64 months at an average net rate of $37,050 per day.
- Three 4,250 TEU containerships have been chartered-out for 50 – 54 months and one 4,250 TEU containership for 42 – 44 months. The total average net rate for the first 42 – 44 months amounts to $46,536 per day (2.25x the current average contracted net rate of $20,663 for 3.4x duration) and for the remaining period amounts to $31,906 per day.
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 1.6 years. Navios Partners has currently fixed 78.8% of its available days for the fourth quarter of 2021, 42.0% for 2022 and 22.5% for 2023. Navios Partners expects to generate contracted revenues of approximately $215.4 million, $582.0 million and $380.3 million for the fourth quarter of 2021, for 2022 and for 2023, respectively. The average expected daily charter-out rate for the fleet is $23,388, $29,350 and $34,095 for the fourth quarter of 2021, for 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 nine month periods ended September 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”). The results of operations of Navios Maritime Containers L.P. (“Navios Containers”) and Navios Acquisition are included in Navios Partners’ consolidated statements of operations commencing on April 1, 2021 and August 26, 2021, respectively.
| Three Month Period Ended September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | |||||||||||||
| (in $‘000 except per unit data) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Revenue | $ | 227,957 | $ | 64,499 | $ | 445,029 | $ | 157,538 | ||||||||
| Net Income/ (Loss) attributable to Navios Partners’ unitholders | $ | 162,054 | $ | 6,991 | $ | 398,646 | $ | (18,374 | ) | |||||||
| Adjusted Net Income/ (Loss) attributable to Navios Partners’ unitholders | $ | 130,103 | (1) | $ | 8,771 | (2) | $ | 242,314 | (3) | $ | (2,894 | ) | (4) | |||
| Net cash provided by operating activities | $ | 70,904 | $ | 21,025 | $ | 148,153 | $ | 68,700 | ||||||||
| EBITDA | $ | 177,185 | $ | 29,143 | $ | 426,160 | $ | 48,814 | ||||||||
| Adjusted EBITDA | $ | 145,234 | (1) | $ | 30,923 | (2) | $ | 269,828 | (3) | $ | 64,294 | (4) | ||||
| Earnings/ (Loss) attributable to Navios Partners’ unitholders per Common Unit basic | $ | 5.97 | $ | 0.63 | $ | 19.27 | $ | (1.65 | ) | |||||||
| Earnings/ (Loss) attributable to Navios Partners’ Unitholders per Common Unit diluted | $ | 5.95 | $ | 0.63 | $ | 19.19 | $ | (1.65 | ) | |||||||
| Adjusted Earnings/ (Loss) attributable to Navios Partners’ unitholders per Common Unit basic | $ | 4.79 | (1) | $ | 0.78 | (2) | $ | 11.72 | (3) | $ | (0.26 | ) | (4) | |||
| Adjusted Earnings/ (Loss) attributable to Navios Partners’ unitholders per Common Unit diluted | $ | 4.77 | (1) | $ | 0.78 | (2) | $ | 11.67 | (3) | $ | (0.26 | ) | (4) | |||
(1) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings attributable to Navios Partners’ unitholders per Common Unit basic and diluted for the three month period ended September 30, 2021 have been adjusted to exclude a: (i) $30.9 million gain related to the sale of three of our vessels; (ii) $4.0 million bargain purchase gain upon obtaining control over Navios Acquisition; and (iii) $2.9 million of transaction costs in relation to the Merger.
(2) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings attributable to Navios Partners’ unitholders per Common Unit basic and diluted for the three month period ended September 30, 2020 have been adjusted to exclude a $1.8 million impairment loss related to the sale of one of our vessels.
(3) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings attributable to Navios Partners’ unitholders per Common Unit basic and diluted for the nine month period ended September 30, 2021 have been adjusted to exclude: (i) an $80.8 million gain from equity in net earnings of affiliated companies; (ii) a $48.0 million bargain purchase gain upon obtaining control over Navios Containers and Navios Acquisition; (iii) a $30.3 million gain related to the sale of seven of our vessels; and (iv) $2.9 million of transaction costs in relation to the Merger.
(4) Adjusted Net Loss, Adjusted EBITDA and Adjusted Loss attributable to Navios Partners’ unitholders per Common Unit basic and diluted for the nine month period ended September 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; (ii) $6.8 million impairment loss related to three containerships; and (iii) $1.8 million impairment loss relating to the sale of one of our vessels.
Three month periods ended September 30, 2021 and 2020
Time charter and voyage revenues from the dry cargo vessels operations for the three month period ended September 30, 2021 increased by approximately $143.1 million, or 221.9%, to $207.6 million, as compared to $64.5 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 September 30, 2021, TCE rate increased by 90.8% to $26,054 per day, as compared to $13,652 per day for the same period in 2020. The available days of the dry cargo fleet increased by 71.3% to 7,707 days for the three month period ended September 30, 2021, as compared to 4,499 for the same period in 2020 mainly due to the merger with Navios Containers.
Time charter and voyage revenues of Navios Acquisition for the period from August 26, 2021 to September 30, 2021 amounted to $20.4 million.
EBITDA of Navios Partners for the three month period ended September 30, 2021 and 2020 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by approximately $114.3 million to $145.2 million for the three month period ended September 30, 2021, as compared to $30.9 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to a: (i) $163.5 million increase in time charter and voyage revenues; (ii) $3.9 million increase in net income attributable to noncontrolling interest; and (iii) $0.4 million decrease in equity net loss of affiliated companies. The above increase was partially mitigated by a: (i) $29.7 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) $7.9 million increase in time charter and voyage expenses; (iii) $6.6 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (iv) $4.8 million increase in general and administrative expenses, mainly due to the increased fleet; and (v) $4.5 million increase in other expense, net.
Adjusted EBITDA of Navios Acquisition, on a standalone basis, amounted to $5.2 million for the period from August 26, 2021 to September 30, 2021.
Net income attributable to Navios Partners’ unitholders for the three month period ended September 30, 2021 and 2020 was affected by the items described in the table above. Excluding these items, adjusted net income for the three month period ended September 30, 2021 amounted to $130.1 million as compared to $8.8 million for the three month period ended September 30, 2020. The increase in adjusted net income was primarily due to a: (i) $114.3 million increase in Adjusted EBITDA; and (ii) $35.6 million increase in amortization of the unfavorable lease terms recorded in the three month period ended September 30, 2021. The above increase was partially mitigated by a: (i) $17.9 million increase in depreciation and amortization expense; (ii) $9.0 million increase in interest expense and finance cost, net; (iii) $1.6 million increase in amortization for deferred drydock, special survey costs and other capitalized items; and (iv) $0.1 million decrease in interest income.
Adjusted net loss of Navios Acquisition, on a standalone basis, amounted to $9.0 million for the period from August 26, 2021 to September 30, 2021.
Nine month periods ended September 30, 2021 and 2020
Time charter and voyage revenues from the dry cargo vessels operations for the nine month period ended September 30, 2021 increased by approximately $267.1 million, or 169.6%, to $424.6 million, as compared to $157.5 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 TCE rate. For the nine month period ended September 30, 2021, TCE rate increased by 79.6% to $21,398 per day, as compared to $11,917 per day for the same period in 2020. The available days of the fleet increased by 52.1% to 19,201 days for the nine month period ended September 30, 2021, as compared to 12,625 for the same period in 2020 mainly due to the merger with Navios Containers.
Time charter and voyage revenues of Navios Acquisition for the period from August 26, 2021 to September 30, 2021 amounted to $20.4 million.
EBITDA of Navios Partners for the nine month period ended September 30, 2021 and 2020 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $205.5 million to $269.8 million for the nine month period ended September 30, 2021, as compared to $64.3 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to a: (i) $287.5 million increase in time charter and voyage revenues; and (ii) $3.9 million increase in net income attributable to noncontrolling interest. The above increase was partially mitigated by: (i) a $50.3 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) a $11.2 million increase in time charter and voyage expenses; (iii) an $8.9 million increase in general and administrative expenses, mainly due to the increased fleet; (iv) a $7.0 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (v) a $7.9 million increase in other expense, net; and (vi) a $0.6 million decrease in equity in net earnings of affiliated companies.
Adjusted EBITDA of Navios Acquisition, on a standalone basis, amounted to $5.2 million for the period from August 26, 2021 to September 30, 2021.
Net income of Navios Partners for the nine month period ended September 30, 2021 was approximately $398.6 million as compared to $18.4 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 nine month period ended September 30, 2021 amounted to $242.3 million compared to $2.9 million adjusted net loss for the nine month period ended September 30, 2020. The increase in adjusted net income was primarily due to a: (i) $205.5 million increase in Adjusted EBITDA; (ii) $77.6 million increase in the amortization of the unfavorable lease terms recorded in the nine month period ended September 30, 2021; and (iii) $0.4 million increase in interest income. The above increase was partially mitigated by a: (i) $25.8 million increase in depreciation and amortization expense; (ii) $9.0 million increase in interest expense and finance cost, net; and (iii) $3.5 million increase in amortization for deferred drydock, special survey costs and other capitalized items.
Adjusted net loss of Navios Acquisition, on a standalone basis, amounted to $9.0 million for the period from August 26, 2021 to September 30, 2021.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners’ dry cargo and tanker vessels performance for the three and nine month periods ended September 30, 2021 and 2020 (including the Navios Containers’ fleet and Navios Acquisition’s tanker fleet for the period from April 1, 2021 to September 30, 2021 and from August 26, 2021 to September 30, 2021, respectively).
| Three Month Period Ended September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Available Days (1) | 9,027 | 4,499 | 20,521 | 12,625 | |||||||||||
| Operating Days (2) | 8,951 | 4,472 | 20,342 | 12,465 | |||||||||||
| Fleet Utilization (3) | 99.2 | % | 99.4 | % | 99.1 | % | 98.7 | % | |||||||
| Time Charter Equivalent Combined (per day) (4) | $ | 24,447 | $ | 13,652 | $ | 20,991 | $ | 11,917 | |||||||
| Time Charter Equivalent Drybulk (per day) (4) | $ | 28,926 | $ | 12,955 | $ | 21,096 | $ | 10,316 | |||||||
| Time Charter Equivalent Containers (per day) (4) | $ | 22,418 | $ | 16,690 | $ | 21,866 | $ | 17,993 | |||||||
| Time Charter Equivalent Tankers (per day) (4) | $ | 15,066 | — | $ | 15,066 | — | |||||||||
| Vessels operating at period end | 129 | 53 | 129 | 53 | |||||||||||
| (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 Wednesday, November 10, 2021 to discuss the results for the third quarter and nine month periods ended September 30, 2021.
Call Date/Time: Wednesday, November 10, 2021 at 8:30 am ET
Call Title: Navios Partners Q3 2021 Financial Results Conference Call
US Dial In: +1.866.342.8591
International Dial In: +1.203.518.9713
Conference ID: NMMQ321
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. 800-839-5631
International Replay Dial In: +1. 402-220-2558
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 Merger with Navios Acquisition, 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, 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 Panamax, Capesize, Ultra-Handymax, Containerships and Tanker vessels in particular, fluctuations in charter rates for dry bulk vessels, 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 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)
| September 30, 2021 | December 31, 2020 | |||||
| ASSETS | (unaudited) | (audited) | ||||
| Cash and cash equivalents, including restricted cash | $ | 141,180 | $ | 30,728 | ||
| Other current assets | 78,712 | 30,052 | ||||
| Vessels, net | 2,895,298 | 1,041,138 | ||||
| Other non-current assets | 497,510 | 105,351 | ||||
| Total assets | $ | 3,612,700 | $ | 1,207,269 | ||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||
| Other current liabilities | $ | 116,638 | $ | 51,417 | ||
| Total borrowings, net (including current and non-current) | 1,425,231 | 486,857 | ||||
| Loan payable to affiliated company | 33,112 | — | ||||
| Other non-current liabilities | 384,985 | 14,165 | ||||
| Total partners’ capital | 1,652,734 | 654,830 | ||||
| Total liabilities and partners’ capital | $ | 3,612,700 | $ | 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 September 30, 2021 (unaudited) | Three Month Period Ended September 30, 2020 (unaudited) | Nine Month Period Ended September 30, 2021 (unaudited) | Nine Month Period Ended September 30, 2020 (unaudited) | |||||||||||||
| Time charter and voyage revenues | $ | 227,957 | $ | 64,499 | $ | 445,029 | $ | 157,538 | ||||||||
| Time charter and voyage expenses | (11,465 | ) | (3,609 | ) | (19,829 | ) | (8,647 | ) | ||||||||
| Direct vessel expenses | (10,864 | ) | (2,736 | ) | (18,007 | ) | (7,670 | ) | ||||||||
| Vessel operating expenses (management fees entirely through related parties transactions) | (53,952 | ) | (24,289 | ) | (118,685 | ) | (68,424 | ) | ||||||||
| General and administrative expenses | (9,491 | ) | (4,716 | ) | (24,717 | ) | (15,844 | ) | ||||||||
| Depreciation and amortization of intangible assets | (32,102 | ) | (14,153 | ) | (67,309 | ) | (41,453 | ) | ||||||||
| Amortization of unfavorable lease terms | 35,576 | — | 77,602 | — | ||||||||||||
| Gain on sale of vessels | 30,859 | — | 30,348 | — | ||||||||||||
| Vessels impairment loss | — | (1,780 | ) | — | (8,580 | ) | ||||||||||
| Interest expense and finance cost, net | (14,446 | ) | (5,417 | ) | (27,624 | ) | (18,636 | ) | ||||||||
| Interest income | — | 143 | 859 | 514 | ||||||||||||
| Impairment of receivable in affiliated company | — | — | — | (6,900 | ) | |||||||||||
| Other expense, net | (4,969 | ) | (569 | ) | (8,864 | ) | (858 | ) | ||||||||
| Equity in net (loss)/ earnings of affiliated companies | — | (382 | ) | 80,839 | 586 | |||||||||||
| Transaction costs related to Navios Acquisition’s merger | (2,870 | ) | — | (2,870 | ) | — | ||||||||||
| Bargain purchase gain | 3,962 | — | 48,015 | — | ||||||||||||
| Net income/ (loss) | $ | 158,195 | $ | 6,991 | $ | 394,787 | $ | (18,374 | ) | |||||||
| Net income attributable to the noncontrolling interest | 3,859 | — | 3,859 | — | ||||||||||||
| Net income/ (loss) attributable to Navios Partners’ unitholders | $ | 162,054 | $ | 6,991 | $ | 398,646 | $ | (18,374 | ) | |||||||
Earnings/ (loss) per unit:
| Three Month Period Ended September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Earnings/ (loss) attributable to Navios Partners’ unitholders per unit: | |||||||||||||
| Earnings/ (loss) attributable to Navios Partners’ unitholders per common unit, basic | $ | 5.97 | $ | 0.63 | $ | 19.27 | $ | (1.65 | ) | ||||
| Earnings/ (loss) attributable to Navios Partners’ unitholders per common unit, diluted | $ | 5.95 | $ | 0.63 | $ | 19.19 | $ | (1.65 | ) | ||||
NAVIOS MARITIME PARTNERS L.P.
Other Financial Information
(Expressed in thousands of U.S. Dollars except unit data)
| Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net cash provided by operating activities | $ | 148,153 | $ | 68,700 | |||
| Net cash used in investing activities | $ | (103,052 | ) | $ | (78,346 | ) | |
| Net cash provided by financing activities | $ | 65,351 | $ | 9,859 | |||
| Increase in cash, cash equivalents and restricted cash | $ | 110,452 | $ | 213 | |||
EXHIBIT 2
| Owned Drybulk Vessels | Type | Built | Capacity (DWT) | |||
| Serenitas N | Ultra-Handymax | 2011 | 56,644 | |||
| Navios Christine B | Ultra-Handymax | 2009 | 58,058 | |||
| Navios Amaryllis | Ultra-Handymax | 2008 | 58,735 | |||
| Navios La Paix | Ultra-Handymax | 2014 | 61,485 | |||
| Navios Symmetry | Panamax | 2006 | 74,381 | |||
| Navios Camelia | Panamax | 2009 | 75,162 | |||
| Navios Hope | Panamax | 2005 | 75,397 | |||
| Navios Libertas | Panamax | 2007 | 75,511 | |||
| Navios Prosperity I | Panamax | 2007 | 75,527 | |||
| Navios Hyperion | Panamax | 2004 | 75,707 | |||
| Navios Sagittarius | Panamax | 2006 | 75,756 | |||
| Navios Anthos | Panamax | 2004 | 75,798 | |||
| Navios Alegria | Panamax | 2004 | 76,466 | |||
| Navios Orbiter | Panamax | 2004 | 76,602 | |||
| Navios Sun | Panamax | 2005 | 76,619 | |||
| Navios Helios | Panamax | 2005 | 77,075 | |||
| Navios Victory | Panamax | 2014 | 77,095 | |||
| 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 Harmony | Panamax | 2006 | 82,790 | |||
| Navios Sphera | Panamax | 2016 | 84,872 | |||
| Navios Apollon I | Panamax | 2005 | 87,052 | |||
| Copernicus N | Panamax | 2010 | 93,062 | |||
| Navios Aurora II | Capesize | 2009 | 169,031 | |||
| Navios Symphony | Capesize | 2010 | 178,132 | |||
| Navios Ace | Capesize | 2011 | 179,016 | |||
| Navios Melodia | Capesize | 2010 | 179,132 | |||
| Navios Luz | Capesize | 2010 | 179,144 | |||
| Navios Azimuth | Capesize | 2011 | 179,169 | |||
| Navios Buena Ventura | Capesize | 2010 | 179,259 | |||
| Navios Fulvia | Capesize | 2010 | 179,263 | |||
| Navios Aster | Capesize | 2010 | 179,314 | |||
| Navios Ray | Capesize | 2012 | 179,515 | |||
| Navios Bonavis | Capesize | 2009 | 180,022 | |||
| Navios Fantastiks | Capesize | 2005 | 180,265 | |||
| Navios Sol | Capesize | 2009 | 180,274 | |||
| Navios Beaufiks | Capesize | 2004 | 180,310 | |||
| Navios Pollux | Capesize | 2009 | 180,727 | |||
| Navios Mars | Capesize | 2016 | 181,259 | |||
| Navios Gem | Capesize | 2014 | 181,336 | |||
| Navios Joy | Capesize | 2013 | 181,389 | |||
| Navios Koyo | Capesize | 2011 | 181,415 |
| Owned Containerships | Type | Built | Capacity (TEU) | |||
| Spectrum N | Containership | 2009 | 2,546 | |||
| Protostar N | Containership | 2007 | 2,741 | |||
| Fleur N | Containership | 2012 | 2,782 | |||
| Ete N | Containership | 2012 | 2,782 | |||
| Navios Summer | Containership | 2006 | 3,450 | |||
| Matson Oahu | Containership | 2006 | 3,450 | |||
| 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 Devotion | Containership | 2009 | 4,250 | |||
| Navios Destiny | Containership | 2009 | 4,250 | |||
| Navios Lapis | Containership | 2009 | 4,250 | |||
| Navios Tempo | Containership | 2009 | 4,250 | |||
| Navios Dorado | Containership | 2010 | 4,250 | |||
| Navios Felicitas | Containership | 2010 | 4,360 | |||
| Bahamas | Containership | 2010 | 4,360 | |||
| Bermuda | Containership | 2010 | 4,360 | |||
| Navios Miami | Containership | 2009 | 4,563 | |||
| Navios Magnolia | Containership | 2008 | 4,730 | |||
| Navios Jasmine | Containership | 2008 | 4,730 | |||
| Navios Chrysalis | Containership | 2008 | 4,730 | |||
| Navios Nerine | Containership | 2008 | 4,730 | |||
| 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 | |||
| Navios Unison | Containership | 2010 | 10,000 | |||
| Navios Constellation | Containership | 2011 | 10,000 |
| Owned Tanker Vessels | Type | Built | Capacity (DWT) |
| Nave Cosmos | Chemical Tanker | 2010 | 25,130 |
| Nave Polaris | Chemical Tanker | 2011 | 25,145 |
| Perseus N | MR1 Product Tanker | 2009 | 36,264 |
| Star N | MR1 Product Tanker | 2009 | 37,836 |
| Hector N | MR1 Product Tanker | 2008 | 38,402 |
| Nave Dorado | MR2 Product Tanker | 2005 | 47,999 |
| 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 Pyxis | MR2 Product Tanker | 2014 | 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 |
| 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 Orbit | MR2 Product Tanker | 2009 | 50,470 |
| Nave Equator | MR2 Product Tanker | 2009 | 50,542 |
| Bougainville | MR2 Product Tanker | 2013 | 50,626 |
| Nave Equinox | MR2 Product Tanker | 2007 | 50,922 |
| Nave Pulsar | MR2 Product Tanker | 2007 | 50,922 |
| Aurora N | LR1 Product Tanker | 2008 | 63,495 |
| Lumen N | LR1 Product Tanker | 2008 | 63,599 |
| Nave Cetus | LR1 Product Tanker | 2012 | 74,581 |
| Nave Ariadne | LR1 Product Tanker | 2007 | 74,671 |
| Nave Cielo | LR1 Product Tanker | 2007 | 74,671 |
| Nave Rigel | LR1 Product Tanker | 2013 | 74,673 |
| Nave Atropos | LR1 Product Tanker | 2013 | 74,695 |
| Nave Cassiopeia | LR1 Product Tanker | 2012 | 74,711 |
| Nave Andromeda | LR1 Product Tanker | 2011 | 75,000 |
| Nave Estella | LR1 Product Tanker | 2012 | 75,000 |
| Nave Constellation | VLCC | 2010 | 296,988 |
| Nave Universe | VLCC | 2011 | 297,066 |
| Nave Galactic | VLCC | 2009 | 297,168 |
| Nave Spherical | VLCC | 2009 | 297,188 |
| Nave Quasar | VLCC | 2010 | 297,376 |
| Nave Photon | VLCC | 2008 | 297,395 |
| Nave Buena Suerte | VLCC | 2011 | 297,491 |
| Nave Synergy | VLCC | 2010 | 299,973 |
| Bareboat Chartered-in vessels | Type | Built | Capacity (DWT) | Purchase Option | ||||
| Navios Star | Panamax | 2021 | 81,994 | Yes | ||||
| Navios Amitie | Panamax | 2021 | 82,002 | Yes | ||||
| Navios Libra | Panamax | 2019 | 82,011 | Yes | ||||
| Nave Electron | VLCC | 2021 | 313,239 | Yes | ||||
| Baghdad | VLCC | 2020 | 313,433 | 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 | H2 2022 | 180,000 | Yes | ||||
| TBN V | Capesize | H1 2023 | 180,000 | Yes | ||||
| TBN IV | Panamax | H2 2022 | 81,000 | Yes | ||||
| TBN VI | Panamax | H1 2023 | 81,000 | Yes | ||||
| TBN XIV | VLCC | H2 2022 | 310,000 | Yes |
| 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 | Containership | H2 2024 | 5,300 | |||
| TBN XIII | Containership | H2 2024 | 5,300 |
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income/ (Loss) attributable to Navios Partners' unitholders and Adjusted Earnings/ (Loss) attributable to Navios Partners' unitholders 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/ (loss) attributable to Navios Partners’ unitholders 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/ (loss) of affiliated 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 affiliated companies; (x) amortization of operating lease right-of-use asset; (xi) gain/(loss) on sale of assets and bargain purchase gain; and (xii) net income attributable to noncontrolling interest. 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/ (Loss) attributable to Navios Partners’ unitholders by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income/ (Loss) attributable to Navios Partners’ unitholders adjusts net income for the items described above under “Earnings Highlights”. The definition of Adjusted Net Income/ (Loss) attributable to Navios Partners’ unitholders used here may not be comparable to that used by other companies due to differences in methods of calculation. Adjusted Basic Earnings/ (Loss) attributable to Navios Partners’ unitholders per Common Unit is defined as Adjusted Net Income / (Loss) attributable to Navios Partners’ unitholders 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 September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||||||||||||
| ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ||||||||||||||||
| Net cash provided by operating activities | $ | 70,904 | $ | 21,025 | $ | 148,153 | $ | 68,700 | |||||||||||
| Net increase in operating assets | 32,241 | 11,794 | 62,341 | 8,027 | |||||||||||||||
| Net decrease/ (increase) in operating liabilities | 21,540 | (6,152 | ) | 26,789 | (29,333 | ) | |||||||||||||
| Net interest cost | 14,446 | 5,274 | 26,765 | 18,122 | |||||||||||||||
| Amortization and write-off of deferred financing cost | (900 | ) | (552 | ) | (2,468 | ) | (1,570 | ) | |||||||||||
| Amortization of operating lease right-of-use asset | 126 | (244 | ) | 187 | (703 | ) | |||||||||||||
| Non cash accrued interest income and amortization of deferred revenue | 284 | 400 | 1,702 | 1,188 | |||||||||||||||
| Stock-based compensation expense | (136 | ) | (240 | ) | (370 | ) | (723 | ) | |||||||||||
| Gain on sale of vessels | 30,859 | — | 30,348 | — | |||||||||||||||
| Vessels impairment loss | — | (1,780 | ) | — | (8,580 | ) | |||||||||||||
| Bargain purchase gain | 3,962 | — | 48,015 | — | |||||||||||||||
| Impairment of receivable in affiliated company | — | — | — | (6,900 | ) | ||||||||||||||
| Equity in net (loss)/ earnings of affiliated companies | — | (382 | ) | 80,839 | 586 | ||||||||||||||
| Net income attributable to noncontrolling interest | 3,859 | — | 3,859 | — | |||||||||||||||
| EBITDA | $ | 177,185 | $ | 29,143 | $ | 426,160 | $ | 48,814 | |||||||||||
| Equity in net earnings of affiliated companies | — | — | (80,839 | ) | — | ||||||||||||||
| Bargain purchase gain | (3,962 | ) | — | (48,015 | ) | — | |||||||||||||
| Transaction costs related to Navios Acquisition's Merger | 2,870 | — | 2,870 | — | |||||||||||||||
| Gain on sale of vessels | (30,859 | ) | — | (30,348 | ) | — | |||||||||||||
| Impairment of receivable in affiliated company | — | — | — | 6,900 | |||||||||||||||
| Vessels impairment loss | — | 1,780 | — | 8,580 | |||||||||||||||
| Adjusted EBITDA | $ | 145,234 | $ | 30,923 | $ | 269,828 | $ | 64,294 | |||||||||||
| Three Month Period Ended September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | |||||||||||||
| ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | ($ ‘000) (unaudited) | |||||||||||||
| Net cash provided by operating activities | $ | 70,904 | $ | 21,025 | $ | 148,153 | $ | 68,700 | ||||||||
| Net cash provided by/ (used in) investing activities | $ | 30,486 | $ | (38,682 | ) | $ | (103,052 | ) | $ | (78,346 | ) | |||||
| Net cash (used in)/ provided by financing activities | $ | (193,063 | ) | $ | 18,457 | $ | 65,351 | $ | 9,859 | |||||||
Navios Maritime Acquisition Corporation Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
| Period from August 26, 2021 to September 30, 2021 | ||||
| ($ ‘000) (unaudited) | ||||
| Net cash used in operating activities | $ | (5,832 | ) | |
| Net decrease in operating assets | (1,982 | ) | ||
| Net decrease in operating liabilities | 5,168 | |||
| Net interest cost | 6,823 | |||
| Amortization and write-off of deferred financing cost | (311 | ) | ||
| Amortization of operating lease right-of-use asset | 55 | |||
| Stock-based compensation expense | (19 | ) | ||
| EBITDA | $ | 3,902 | ||
| Transaction costs related to Navios Acquisition’s merger | 1,298 | |||
| Adjusted EBITDA | $ | 5,200 | ||
