FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Dated: January 26, 2012

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

85 AktiMiaouli Street, Piraeus, Greece 185 38

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨             No  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨             No  x

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No  x

If “Yes” is marked, indicate the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


On January 26, 2012, Navios Maritime Partners L.P. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2011. A copy of the press release is furnished as Exhibit 99.1 to this Report and is incorporated herein by reference.

The information contained in this Report is hereby incorporated by reference into the Registration Statement on Form F-3, File No. 333-170284.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

NAVIOS MARITIME PARTNERS L.P.
By:  

/s/ AngelikiFrangou

  AngelikiFrangou
  Chief Executive Officer
Date: January 27, 2012


EXHIBIT INDEX

 

Exhibit

No.

 

Exhibit

99.1   Press Release dated January 26, 2012
Press Release

Exhibit 99.1

Navios Maritime Partners L.P.

Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2011

 

   

Cash distribution of $0.44 per unit for Q4 2011

 

   

18.8% increase in quarterly Revenue to $50.5 million

 

   

15.5% increase in quarterly Operating Surplus to $31.3 million

 

   

19.9% increase in quarterly EBITDA to $38.6 million

PIRAEUS, GREECE, January 26, 2012 – Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an owner and operator of dry cargo vessels, today reported its financial results for the fourth quarter and the year ended December 31, 2011.

Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: “We are pleased with the results of the fourth quarter and full year 2011. We declared a distribution of $0.44 per unit for the fourth quarter, representing an annualized distribution of $1.76 and a current yield of almost 11%.”

Ms. Frangou continued, “We built a vibrant MLP, with a strong group of assets generating healthy cash flow. During this past year, we reinforced our operating stability by locking in technical and commercial management services for an additional five years and making accretive acquisitions. We have increased our distributions in the aggregate by 25.7% since our IPO in 2007 and look forward to further growing our cash flows and distributions.”

RECENT DEVELOPMENTS

Cash Distribution

The Board of Directors of Navios Partners declared a cash distribution for the fourth quarter of 2011 of $0.44 per unit. The cash distribution is payable on February 14, 2012 to unitholders of record on February 9, 2012.

Navios Apollon Charter Party

Navios Partners has entered into a new charter with a subsidiary of Navios Maritime Holdings Inc. for the Navios Apollon. The term of this charter is approximately two years commencing upon completion of the current charter, at a daily rate of $12,500 net per day for the first year and $13,500 net per day for the second year, plus 50/50 profit sharing based on actual earnings.

Long-Term and Insured Cash Flow

Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of approximately four years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 96.6% of its available days for 2012, 79.3% for 2013 and 45.0% for 2014, generating revenues of approximately $192.6 million, $159.3 million and $99.7 million, respectively. The average contractual daily charter-out rate for the fleet is $30,270, $30,597 and $33,744 for 2012, 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels is $13,513 for 2012.

 

1


Navios Partners’ charter-out contracts are insured for credit default by an AA rated European Union governmental agency.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three month periods and for the years ended December 31, 2011 and 2010. The quarterly and year ended 2011 and 2010 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net income, Adjusted Earnings per Common Unit and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results.

 

(in $ ‘000 except per unit data)   

Three Month
Period ended

December 31,
2011

(unaudited)

     Three Month
Period ended
December 31,
2010
(unaudited)
    

Year ended
December 31,
2011

(unaudited)

    

Year ended
December 31,
2010

(unaudited)

 

Revenue

   $ 50,464       $ 42,489       $ 186,953       $ 143,231   

Net income

   $ 18,661       $ 18,397       $ 65,335       $ 60,511   

Adjusted Net income (1)

   $ 18,661       $ 18,397       $ 69,314       $ 60,511   

EBITDA

   $ 38,588       $ 32,220       $ 137,790       $ 107,120   

Adjusted EBITDA (1)

   $ 38,588       $ 32,220       $ 141,769       $ 107,120   

Earnings per Common unit

   $ 0.35       $ 0.38       $ 1.33       $ 1.51   

Adjusted Earnings per Common unit(1)

   $ 0.35       $ 0.38       $ 1.40       $ 1.51   

Operating Surplus

   $ 31,332       $ 27,050       $ 115,870       $ 87,731   

Maintenance and Replacement Capital expenditure reserve

   $ 4,828       $ 4,000       $ 18,569       $ 14,669   

 

(1) Adjusted Net income, Adjusted EBITDA and Adjusted Earnings per Common Unit (basic and diluted) for the year ended December 31, 2011, exclude a $4.0 million non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract.

Three month periods ended December 31, 2011 and 2010

Time charter revenues for the three month period ended December 31, 2011 increased by $8.0 million or 18.8% to $50.5 million, as compared to $42.5 million for the same period in 2010. The increase was mainly attributable to the acquisitions of the Navios Melodia and the Navios Fulvia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. As a result of the vessel acquisitions, available days of the fleet increased to 1,647 days for the three month period ended December 31, 2011, as compared to 1,381 days for the three month period ended December 31, 2010. The increase in revenue was partially offset by the decrease of $0.5 million incurred due to scheduled and unscheduled off hires. The time charter equivalent (“TCE”) decreased to $30,646 for the three month period ended December 31, 2011, from $30,767 for the three month period ended December 31, 2010.

EBITDA increased by $6.4 million to $38.6 million for the three month period ended December 31, 2011, as compared to $32.2 million for the same period of 2010. The increase in EBITDA was due to an $8.0 million increase in revenue following the acquisitions of the Navios Melodia and the Navios Fulvia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. The above increase was partially offset by a $1.0 million increase in management fees, a $0.6 million increase in time charter expenses as a result of the increased number of vessels in Navios Partners’ fleet.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended December 31, 2011 and 2010 was $4.8 million and $4.0 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

 

2


Navios Partners generated an Operating Surplus for the three month period ended December 31, 2011 of $31.3 million, as compared to $27.1 million for the three month period ended December 31, 2010. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Net income for the three months ended December 31, 2011 amounted to $18.7 million compared to $18.4 million for the three months ended December 31, 2010. The increase in net income by $0.3 million was due to a $6.4 million increase in EBITDA partially offset by: (i) a $0.4 million decrease in interest income; (ii) a $1.0 million increase in interest expense and finance cost, net; and (iii) a $4.7 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter and the Navios Luz and the favorable lease terms recognized in relation to these acquisitions.

Years ended December 31, 2011 and 2010

Time charter revenues for the year ended December 31, 2011 increased by $43.8 million or 30.6% to $187.0 million, as compared to $143.2 million for the same period in 2010. The increase was mainly attributable to the acquisition of the Navios Hyperion on January 8, 2010, the Navios Sagittarius on January 12, 2010, the Navios Aurora II on March 18, 2010, the Navios Pollux on May 21, 2010, the Navios Fulvia and the Navios Melodia on November 15, 2010 and the Navios Luz and the Navios Orbiter on May 19, 2011. As a result of these vessel acquisitions, available days of the fleet increased to 6,251 days for the year ended December 31, 2011, as compared to 4,879 days for the year ended December 31, 2010. The increase in revenue was partially offset by the decrease of $7.5 million incurred due to unscheduled off hires. The time charter equivalent (“TCE”) increased to $29,909 for the year ended December 31, 2011, from $29,358 for the year ended December 31, 2010.

Adjusted EBITDA increased by $34.7 million to $141.8 million for the year ended December 31, 2011, as compared to $107.1 million for the same period of 2010. The increase in Adjusted EBITDA was due to a $43.8 million increase in revenue following the acquisitions of the Navios Hyperion and the Navios Sagittarius in January 2010, the Navios Aurora II in March 2010, the Navios Pollux in May 2010, the Navios Melodia and the Navios Fulvia in November 2010 and the Navios Luz and the Navios Orbiter in May 2011. The above increase was partially offset by a $6.6 million increase in management fees, a $1.4 million increase in time charter expenses and a $1.1 million increase in administrative and other income/expenses as a result of the increased number of vessels in Navios Partners’ fleet.

The reserve for estimated maintenance and replacement capital expenditures for the year ended December 31, 2011 and 2010 was $18.6 million and $14.7 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Partners generated an Operating Surplus for the year ended December 31, 2011 of $115.9 million, as compared to $87.7 million for the year ended December 31, 2010. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Net income for the year ended December 31, 2011 amounted to $65.3 million which was negatively impacted by a $4.0 million non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract. Excluding this write-off, Adjusted net income for the year ended December 31, 2011 amounted to $69.3 million compared to $60.5 million for the year ended December 31, 2010. The increase in net income by $8.8 million was due to a $34.7 million increase in Adjusted EBITDA partially offset by: (i) a

 

3


$2.9 million increase in interest expense and finance cost, net; (ii) a $0.2 million decrease in interest income; and (iii) a $22.8 million increase in depreciation and amortization expense due to the acquisitions of the Navios Sagittarius, the Navios Hyperion, the Navios Aurora II, the Navios Pollux, the Navios Melodia, the Navios Fulvia, the Navios Orbiter and the Navios Luz and the favorable lease terms recognized in relation to these acquisitions.

Fleet Employment Profile

The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month period and the year ended December 31, 2011 and 2010.

 

    Three Month
Period ended
December 31, 2011
(unaudited)
    Three Month
Period ended
December 31, 2010
(unaudited)
    Year ended
December 31, 2011
(unaudited)
    Year ended
December 31, 2010
(unaudited)
 

Available Days (1)

    1,647        1,381        6,251        4,879   

Operating Days (2)

    1,633        1,378        5,950        4,865   

Fleet Utilization (3)

    99.2     99.8     95.2     99.7

Time Charter Equivalent (per day) (4)

  $ 30,646      $ 30,767      $ 29,909      $ 29,358   

Vessels operating at period end

    18        16        18        16   

 

(1) Available days for the fleet represent total calendar days the vessels were in our possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues.
(2) Operating days is the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
(3) Fleet utilization is the percentage of time that our vessels were available for revenue generating available days, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure efficiency in finding employment for vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, drydockings or special surveys.
(4) Time Charters Equivalents (“TCE”) rates are defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE rate is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet.

 

4


Conference Call details:

Navios Partners’ management will host a conference call today, Thursday, January 26, 2012 to discuss the results for the fourth quarter and year ended December 31, 2011.

Conference Call details:

Call Date/Time: Thursday, January 26, 2012 at 08:30 am ET

Call Title: Navios Partners Q4 and FY 2011 Financial Results Conference Call

US Dial In: +1.866.394.0817

International Dial In: +1.706.679.9759

Conference ID: 4053 9490

The conference call replay will be available two hours after the live call and remain available for one week at the following numbers:

US Replay Dial In: +1.800.585.8367

International Replay Dial In: +1.404.537.3406

Conference ID: 4053 9490

Slides and audio webcast:

There will also be a live webcast of the conference call, through the Navios Partners website (www.navios-mlp.com) under “Investors”. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A supplemental slide presentation will be available on the Navios Partners website under the “Investors” section by 7:45 am ET on the day of the call.

About Navios Maritime Partners L.P.

Navios Partners (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit our website at www.navios-mlp.com

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Partners’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. Although the Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have

 

5


been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Partners’ filings with the Securities and Exchange Commission. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contacts

Investor Relations Contact:

Navios Maritime Partners L.P.

+1 (212) 906 8645

Investors@navios-mlp.com

Nicolas Bornozis

Capital Link, Inc.

naviospartners@capitallink.com

 

6


EXHIBIT 1

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of U.S. Dollars except unit data)

 

     December 31,
2011
    December 31,
2010
 
     (unaudited)        

ASSETS

    

Current assets

    

Cash and cash equivalents

   $ 48,078      $ 51,278   

Restricted cash

     8,468        824   

Accounts receivable, net

     4,835        936   

Prepaid expenses and other current assets

     2,177        2,574   
  

 

 

   

 

 

 

Total current assets

     63,558        55,612   
  

 

 

   

 

 

 

Vessels, net

     667,213        612,358   

Deferred financing costs, net

     2,466        2,582   

Other long term assets

     106        242   

Intangible assets

     176,581        170,091   
  

 

 

   

 

 

 

Total non-current assets

     846,366        785,273   
  

 

 

   

 

 

 

Total assets

   $ 909,924      $ 840,885   
  

 

 

   

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

    

Current liabilities

    

Accounts payable

   $ 2,022      $ 1,076   

Accrued expenses

     2,986        1,941   

Deferred voyage revenue

     10,920        10,575   

Current portion of long-term debt

     36,700        29,200   

Amounts due to related parties

     4,077        2,633   
  

 

 

   

 

 

 

Total current liabilities

     56,705        45,425   
  

 

 

   

 

 

 

Long-term debt

     289,350        292,300   

Unfavorable lease terms

     —          665   

Deferred voyage revenue

     4,230        10,992   
  

 

 

   

 

 

 

Total non-current liabilities

     293,580        303,957   
  

 

 

   

 

 

 

Total liabilities

     350,285        349,382   
  

 

 

   

 

 

 

Commitments and contingencies

     —          —     

Partners’ capital:

    

Common Unitholders (46,887,320 and 41,779,404 units issued and outstanding at December 31, 2011 and December 31, 2010, respectively)

     729,550        651,965   

Subordinated Unitholders (7,621,843 units issued and outstanding at December 31, 2011 and December 31, 2010)

     (177,969     (168,229

General Partner (1,132,843 and 1,028,599 units issued and outstanding at December 31, 2011 and December 31, 2010, respectively)

     1,976        1,685   

Subordinated Series A Unitholders (1,000,000 units issued and outstanding at December 31, 2011 and December 31, 2010)

     6,082        6,082   
  

 

 

   

 

 

 

Total Partners’ capital

     559,639        491,503   
  

 

 

   

 

 

 

Total liabilities and Partners’ capital

   $ 909,924      $ 840,885   
  

 

 

   

 

 

 

 

7


NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Expressed in thousands of U.S. Dollars except unit and per unit amounts)

 

     Three Month
Period ended
December 31,
2011
    Three Month
Period ended
December 31,
2010
    Year ended
December 31,
2011
    Year ended
December  31,
2010
 
     ($’000)
(unaudited)
    ($’000)
(unaudited)
    ($’000)
(unaudited)
    ($’000)  

Time charter revenues

   $ 50,464      $ 42,489      $ 186,953      $ 143,231   

Time charter expenses

     (3,801     (3,219     (13,473     (12,027

Direct vessel expenses

     (13     (17     (61     (92

Management fees

     (6,736     (5,682     (26,343     (19,746

General and administrative expenses

     (1,387     (1,330     (4,965     (4,303

Depreciation and amortization

     (17,150     (12,499     (63,971     (41,174

Write-off of intangible asset

     —          —          (3,979     —     

Interest expense and finance cost, net

     (2,830     (1,794     (9,244     (6,360

Interest income

     66        487        821        1,017   

Other income

     235        —          272        85   

Other expense

     (187     (38     (675     (120
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 18,661      $ 18,397      $ 65,335      $ 60,511   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per unit:

 

     Three Month
Period ended
December 31, 2011
(unaudited)
     Three Month
Period ended
December 31, 2010
(unaudited)
     Year ended
December 31, 2011
(unaudited)
     Year ended
December 31, 2010
 

Net income

   $ 18,661       $ 18,397       $ 65,335       $ 60,511   

Earnings attributable to:

           

Common unit holders

     16,411         15,242         60,506         50,823   

Subordinated unit holders

     1,877         2,781         3,522         8,465   

General partner unit holders

     373         374         1,307         1,223   

Subordinated Series A unit holders

     —           —           —           —     

Weighted average units outstanding (basic and diluted)

           

Common unit holders

     46,887,320         40,500,038         45,409,807         33,714,905   

Subordinated unit holders

     7,621,843         7,621,843         7,621,843         7,621,843   

General partner unit holders

     1,132,843         1,002,490         1,102,689         864,017   

Subordinated Series A unit holders

     1,000,000         1,000,000         1,000,000         1,000,000   

Earnings per unit- overall (basic and diluted):

           

Common unit holders

   $ 0.35       $ 0.38       $ 1.33       $ 1.51   

Subordinated unit holders

   $ 0.25       $ 0.37       $ 0.46       $ 1.11   

General partner unit holders

   $ 0.33       $ 0.37       $ 1.19       $ 1.42   

Subordinated Series A unit holders

   $ —         $ —         $ —         $ —     

 

8


NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Year Ended
December 31,
2011
    Year Ended
December 31,
2010
    Year Ended
December 31,
2009
 
     (unaudited)              

OPERATING ACTIVITIES

      

Net income

   $ 65,335      $ 60,511      $ 34,322   

Adjustments to reconcile net income to net cash provided by operating activities:

      

Depreciation and amortization

     63,971        41,174        15,877   

Write-off of intangible asset

     3,979        —          —     

Amortization of deferred financing cost

     530        415        683   

Amortization of deferred dry dock costs

     61        92        415   

Provision for bad debts

     —          —          49   

Compensation expense

     —          —          6,082   

Changes in operating assets and liabilities:

      

Increase in restricted cash

     (2     (2     (822

Increase in accounts receivable

     (3,899     (334     (338

Decrease/(increase) in prepaid expenses and other current assets

     396        (1,797     (406

Decrease/(increase) in other long term assets

     75        (154     —     

Increase/(decrease) in accounts payable

     946        558        (76

Increase in accrued expenses

     1,045        97        182   

(Decrease)/increase in deferred voyage revenue

     (6,417     (5,211     24,172   

Increase in amounts due to related parties

     1,444        669        425   
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     127,464        96,018        80,565   
  

 

 

   

 

 

   

 

 

 

INVESTING ACTIVITIES:

      

Acquisition of vessels

     (76,220     (291,591     (23,683

Acquisition of intangibles

     (43,780     (156,166     (42,917

Deposit for vessel acquisitions

     —          —          (2,500
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (120,000     (447,757     (69,100
  

 

 

   

 

 

   

 

 

 

FINANCING ACTIVITIES:

      

Cash distributions paid

     (95,499     (72,316     (39,016

Net proceeds from issuance of general partner units

     2,052        6,150        2,948   

Proceeds from issuance of common units, net of offering costs

     86,288        253,871        126,807   

Proceeds from long term debt

     35,000        139,000        —     

(Increase)/decrease in restricted cash

     (7,642     12,500        (12,500

Repayment of long-term debt and payment of principal

     (30,450     (12,500     (40,000

Debt issuance costs

     (413     (1,566     (200
  

 

 

   

 

 

   

 

 

 

Net cash (used in)/provided by financing activities

     (10,664     325,139        38,039   
  

 

 

   

 

 

   

 

 

 

(Decrease)/increase in cash and cash equivalents

     (3,200     (26,600     49,504   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, beginning of period

     51,278       77,878        28,374   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 48,078     $ 51,278      $ 77,878   
  

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

      

Cash paid for interest

   $ 8,131     $ 5,806      $ 7,590   

Issuance of common units to Navios Holdings related to the acquisition of Navios Luz and Navios Orbiter in May 2011

   $ 9,960     $ —        $ —     

Issuance of common units to Navios Holdings related to the acquisition of the Navios Fulvia and the Navios Melodia in November 2010

   $ —        $ 14,971      $ —     

Issuance of common units to Navios Holdings related to the acquisition of Navios Aurora II in March 2010

   $ —        $ 20,326      $ —     

Issuance of units in connection with the non-cash compensation expense related to the relief of the obligation on Navios Bonavis

   $ —        $ —        $ 6,082   

 

9


EXHIBIT 2

 

Owned Vessels    Type    Built    Capacity
(DWT)
     Charter Expiration
Date
   Charter-Out
Rate (1)
 

Navios Apollon(2)

   Ultra-Handymax    2000      52,073       March 2012    $ 13,775   
            March 2013    $ 12,500   
            March 2014    $ 13,500   

Navios Gemini S

   Panamax    1994      68,636       February 2014    $ 24,225   

Navios Libra II

   Panamax    1995      70,136       November 2012    $ 18,525   

Navios Felicity

   Panamax    1997      73,867       June 2013    $ 26,169   

Navios Galaxy I

   Panamax    2001      74,195       February 2018    $ 21,937   

Navios Hyperion

   Panamax    2004      75,707       April 2014    $ 37,953   

Navios Alegria

   Panamax    2004      76,466       February 2014    $ 16,984 (3)

Navios Orbiter

   Panamax    2004      76,602       April 2014    $ 38,052   

Navios Hope

   Panamax    2005      75,397       August 2013    $ 17,562   

Navios Sagittarius

   Panamax    2006      75,756       November 2018    $ 26,125   

Navios Fantastiks

   Capesize    2005      180,265       February 2014    $ 36,290   

Navios Aurora II

   Capesize    2009      169,031       November 2019    $ 41,325   

Navios Pollux

   Capesize    2009      180,727       July 2019    $ 42,250   

Navios Fulvia

   Capesize    2010      179,263       September 2015    $ 50,588   

Navios Melodia(4)

   Capesize    2010      179,132       September 2022    $ 29,356 (5) 

Navios Luz

   Capesize    2010      179,144       November 2020    $ 29,356 (6) 

 

Long-term Chartered-in Vessels

 

              

Navios Prosperity (7)

   Panamax    2007      82,535       July 2012    $ 24,000   

Navios Aldebaran (8)

   Panamax    2008      76,500       March 2013    $ 28,391   

 

(1) Net time charter-out rate per day (net of commissions). Represents the charter-out rate during the time charter period prior to the time charter expiration date and, if applicable, the charter-out rate under new time charter.
(2) New charter for two years at a rate of $12,500 net per day for the first year and $13,500 net per day for the second year plus 50/50 profit sharing based on actual earnings.
(3) Profit sharing 50% above $16,984/ day based on Baltic Exchange Panamax TC Average.
(4) In January 2011, Korea Line Corporation (“KLC”) filed for receivership. The charter was affirmed and will be performed by KLC on its original terms, provided that during an interim suspension period the sub-charterer of the Navios Melodia will pay Navios Partners directly.
(5) Profit sharing 50% above $37,500/ day based on Baltic Exchange Capesize TC Average.
(6) Profit sharing 50% above $38,500/ day based on Baltic Exchange Capesize TC Average.
(7) The Navios Prosperity is chartered-in for seven years until June 2014 and we have options to extend for two one-year periods. We have the option to purchase the vessel after June 2012 at a purchase price that is initially 3.8 billion Yen declining each year by 145 million Yen.
(8) The Navios Aldebaran is chartered-in for seven years until March 2015 and we have options to extend for two one-year periods. We have the option to purchase the vessel after March 2013 at a purchase price that is initially 3.6 billion Yen declining each year by 150 million Yen.

 

10


EXHIBIT 3

Disclosure of Non-GAAP Financial Measures

EBITDA

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.

Adjusted EBITDA

Adjusted EBITDA represents EBITDA plus the non-cash charge for the write-off of the intangible asset associated with the Navios Apollon charter-out contract.

EBITDA and Adjusted EBITDA are presented because Navios Partners believes that EBITDA is a basis upon which liquidity can be assessed and present useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. EBITDA and Adjusted EBITDA are “non-GAAP financial measures” and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA and Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

2. Operating Surplus

Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense and estimated maintenance and replacement capital expenditures. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.

Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of Navios Partners’ performance required by accounting principles generally accepted in the United States.

3. Available Cash

Available Cash generally means for each fiscal quarter, all cash on hand at the end of the quarter:

 

   

less the amount of cash reserves established by the Board of Directors to:

 

   

provide for the proper conduct of Navios Partners’ business (including reserve for maintenance and replacement capital expenditures);

 

   

comply with applicable law, any of Navios Partners’ debt instruments, or other agreements; or

 

   

provide funds for distributions to the unitholders and to the general partner for any one or more of the next four quarters;

 

11


   

plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Working capital borrowings are generally borrowings that are made under any revolving credit or similar agreement used solely for working capital purposes or to pay distributions to partners.

Available Cash is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Available cash is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of Navios Partners’ performance required by accounting principles generally accepted in the United States.

4. Reconciliation of Non-GAAP Financial Measures

 

     Three Month
Period ended

December 31,
2011
($ ‘000)
(unaudited)
    Three Month
Period ended

December 31,
2010

($ ‘000)
(unaudited)
    Year ended
December 31,
2011

($ ‘000)
(unaudited)
    Year ended
December 31,
2010

($ ‘000)
(unaudited)
 

Net Cash from Operating Activities

   $ 31,331      $ 30,708      $ 127,464      $ 96,018   

Net (decrease)/increase in operating assets

     (1,005     110        3,430        2,287   

Net decrease in operating liabilities

     5,634        208        2,982        3,887   

Net interest cost

     2,764        1,307        8,423        5,343   

Write-off of intangible asset

     —          —          (3,979     —     

Deferred finance charges

     (136     (113     (530     (415
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

   $ 38,588      $ 32,220      $ 137,790      $ 107,120   

Write-off of intangible asset

     —          —          3,979        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 38,588      $ 32,220      $ 141,769      $ 107,120   

Cash interest income

     107        495        801        1,086   

Cash interest paid

     (2,535     (1,665     (8,131     (5,806

Maintenance and replacement capital expenditure reserve

     (4,828     (4,000     (18,569     (14,669
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Surplus(2)

   $ 31,332      $ 27,050      $ 115,870      $ 87,731   

Cash distribution paid relating to the first three quarters of the year

     —          —          (73,597     (57,229

Cash reserves

     (6,503     (5,149     (17,444     (8,601
  

 

 

   

 

 

   

 

 

   

 

 

 

Available cash for distribution

   $ 24,829      $ 21,901      $ 24,829      $ 21,901   

 

(1)

 

     Three Month
Period ended

December 31,
2011

($ ‘000)
(unaudited)
    Three Month
Period ended

December 31,
2010

($ ‘000)
(unaudited)
    Year ended
December 31,
2011

($ ‘000)
(unaudited)
    Year ended
December 31,
2010

($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 31,331      $ 30,708      $ 127,464      $ 96,018   

Net cash used in investing activities

   $ —        $ (162,001   $ (120,000   $ (447,757

Net cash (used in)/provided by financing activities

   $ (32,754   $ 137,476      $ (10,664   $ 325,139   

 

(2) Excludes expansion capital expenditures.

 

12