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: July 26, 2012

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

85 Akti Miaouli 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

 

 

 


On July 26, 2012, Navios Maritime Partners L.P. issued a press release announcing its financial results for the second quarter and six months ended June 30, 2012. 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/ Angeliki Frangou

  Angeliki Frangou
  Chief Executive Officer
Date:   August 2, 2012


EXHIBIT INDEX

 

Exhibit

No.

  

Exhibit

99.1    Press Release dated July 26, 2012
Press Release

Exhibit 99.1

Navios Maritime Partners L.P.

Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2012

 

   

Acquisition of three vessels

 

   

Increase in cash distribution to $0.4425 per unit for Q2 2012

 

   

7.4% increase in quarterly Revenue to $49.1 million

 

   

18.2% increase in quarterly EBITDA to $36.4 million

 

   

2.8% increase in quarterly Operating Surplus to $29.5 million

 

   

23.7% increase in quarterly Net Income to $16.7 million

PIRAEUS, GREECE, July 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 second quarter and six months ended June 30, 2012.

Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: “I am pleased with the results for the second quarter of 2012. We increased EBITDA by 18% and net income by almost 24%. We also increased our annual distribution by a penny and announced a quarterly distribution of $0.4425 per unit. The increased distribution represents an annual distribution of $1.77 and a yield of approximately 13%.”

Ms. Frangou continued, “We made an attractive acquisition of three vessels, one of which was a drop down and two of which were directly from the S&P market. With the acquisition of vessels from the S&P market, we have taken the next step in the evolution of Navios Partners. These vessels are relatively young, purchased for prices that we view as attractive today and in the longer term and profitable even at these low charter rates. We believe that these vessels will be able to serve Navios Partners now while also providing the potential for increased distributions in an improved market.”

RECENT DEVELOPMENTS

Increase in Cash Distributions

The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2012 of $0.4425 per unit. This represents an increase of 0.6% from the cash distribution of $0.44 per unit declared in the first quarter of 2012. The cash distribution is payable on August 13, 2012 to unitholders of record on August 8, 2012.

Vessel acquisitions

On June 15, 2012, Navios Partners acquired from Navios Maritime Holdings Inc. (“Navios Holdings”) the Navios Buena Ventura, a 179,259 dwt Capesize vessel built in 2010, for a cash purchase price of $67.5 million. The Navios Buena Ventura has been chartered-out at a net rate of $29,356 per day until October 2020, which Navios Partners expects to contribute an annualized EBITDA of approximately $8.3 million.

On June 29, 2012, Navios Partners entered into an agreement with a third party for the acquisition of the Navios Soleil, a 57,337 dwt Ultra-Handymax vessel built in 2009, for a cash purchase price of $20.7 million. The vessel was delivered on July 24, 2012.

On June 29, 2012, Navios Partners entered into an agreement with a third party for the acquisition of the Navios Helios, a 77,075 dwt Panamax vessel built in 2005, for a cash purchase price of $20.8 million. The vessel is expected to be delivered on July 27, 2012.

The acquisition of the three vessels is being financed with proceeds from the May 2012 offering of 4,600,000 common units and the balance with new bank financing.

 

1


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 3.5 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 99.0% of its available days for 2012, 78.3% for 2013 and 43.1% for 2014, generating revenues of approximately $203.0 million, $174.3 million and $110.2 million, respectively. The average contractual daily charter-out rate for the fleet is $28,862, $29,048 and $33,375 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.

Navios Partners has insured its charter-out contracts for credit default through a “AA” rated insurance company in the E.U.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three and six month periods ended June 30, 2012 and 2011. The quarterly 2012 and 2011 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results.

 

    

Three Month

Period ended

June 30, 2012

   

Three Month

Period ended

June 30, 2011

   

Six Month

Period ended

June 30, 2012

   

Six Month

Period ended

June 30, 2011

 
(in $‘000 except per unit data)    (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenue

   $ 49,122      $ 45,675      $ 97,109      $ 88,479   

Net income

   $ 16,681      $ 13,511      $ 33,618      $ 30,111   

EBITDA

   $ 36,377      $ 30,793      $ 73,162      $ 63,223   

Earnings per Common unit(basic and diluted)

   $ 0.29      $ 0.29      $ 0.59      $ 0.63   

Operating Surplus

   $ 29,497      $ 28,673      $ 59,087      $ 55,196   

Maintenance and Replacement Capital expenditure reserve

   $ (4,525   $ (4,569   $ (8,986   $ (8,912

Three month periods ended June 30, 2012 and 2011

Time charter revenues for the three month period ended June 30, 2012 increased by $3.4 million or 7.4% to $49.1 million, as compared to $45.7 million for the same period in 2011. The increase was mainly attributable to the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and the acquisition of the Navios Buena Ventura on June 15, 2012. As a result of these vessel acquisitions, available days of the fleet increased to 1,654 days for the three month period ended June 30, 2012, as compared to 1,541 days for the three month period ended June 30, 2011. The time charter equivalent (“TCE”) decreased to $29,262 for the three month period ended June 30, 2012, from $29,640 for the three month period ended June 30, 2011.

EBITDA increased by $5.6 million to $36.4 million for the three month period ended June 30, 2012, as compared to $30.8 million for the same period of 2011. The increase in EBITDA was due mainly to a $3.4 million increase in revenue following the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and the acquisition of the Navios Buena Ventura on June 15, 2012 and a $4.0 million of non-cash charge for the write-off of intangible asset associated with the Navios Apollon charter out contract incurred in the three month period ended June 30, 2011. The above increase was partially offset by a $0.8 million increase in management fees, a $0.1 million increase in general and administrative expenses, a $0.7 million increase in time charter expenses and a $0.2 million increase in other income/(expense), net.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended June 30, 2012 and 2011 was $4.5 million and $4.6 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 June 30, 2012 of $29.5 million, as compared to $28.7 million for the three month period ended June 30, 2011. 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 June 30, 2012 amounted to $16.7 million compared to $13.5 million for the three months ended June 30, 2011. The increase in net income by $3.2 million was due to a $5.6 million increase in EBITDA partially offset by: (i) a $1.7 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter, the Navios Luz and the Navios Buena Ventura and the favorable lease terms recognized in relation to these acquisitions; (ii) a $0.4 million increase in interest expense and finance cost, net; and (iii) a $0.3 million decrease in interest income.

Six month periods ended June 30, 2012 and 2011

Time charter revenues for the six month period ended June 30, 2012 increased by $8.6 million or 9.7% to $97.1 million, as compared to $88.5 million for the same period in 2011. The increase was mainly attributable to the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and the acquisition of the Navios Buena Ventura on June 15, 2012. As a result of these vessel acquisitions, available days of the fleet increased to 3,292 days for the six month period ended June 30, 2012, as compared to 2,981 days for the six month period ended June 30, 2011. TCE decreased to $29,614 for the six month period ended June 30, 2012, from $30,013 for the six month period ended June 30, 2011.

EBITDA increased by $10.0 million to $73.2 million for the six month period ended June 30, 2012, as compared to $63.2 million for the same period of 2011. The increase in EBITDA was mainly due to: (i) an $8.6 million increase in revenue following the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and the acquisition of the Navios Buena Ventura on June 15, 2012; (ii) a $4.0 million of non-cash charge for the write-off of intangible asset associated with the Navios Apollon charter out contract incurred in the three month period ended June 30, 2011; and (iii) $0.5 million increase in other income/(expense), net. The above increase was partially offset by a $2.0 million increase in management fees, a $0.2 million increase in general and administrative expenses and a $0.9 million increase in time charter expenses.

The reserve for estimated maintenance and replacement capital expenditures for the six month periods ended June 30, 2012 and 2011 was $9.0 million and $8.9 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Partners generated an Operating Surplus for the six month period ended June 30, 2012 of $59.1 million, as compared to $55.2 million for the six month period ended June 30, 2011. 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 six months ended June 30, 2012 amounted to $33.6 million compared to $30.1 million for the six months ended June 30, 2011. The increase in net income by $3.5 million was due to a $10.0 million increase in EBITDA partially offset by: (i) a $4.8 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter, the Navios Luz and the Buena Ventura and the favorable lease terms recognized in relation to these acquisitions; (ii) a $1.2 million increase in interest expense and finance cost, net; and (iii) a $0.5 million decrease in interest income.

Fleet Employment Profile

The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three and six month periods ended June 30, 2012 and 2011.

 

3


     Three Month
Period ended
June 30, 2012
(unaudited)
    Three Month
Period ended
June 30, 2011
(unaudited)
    Six Month
Period ended
June 30, 2012
(unaudited)
    Six Month
Period ended
June 30, 2011
(unaudited)
 

Available Days (1)

     1,654        1,541        3,292        2,981   

Operating Days (2)

     1,628        1,450        3,202        2,814   

Fleet Utilization (3)

     99.9     94.1     99.9     95.5

Time Charter Equivalent (per day) (4)

   $ 29,262      $ 29,640      $ 29,614      $ 30,013   

Vessels operating at period end

     19        18        19        18   

 

(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, July 26, 2012 to discuss the results for the second quarter and six months ended June 30, 2012.

Conference Call details:

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

Call Title: Navios Partners Q2 2012 Financial Results Conference Call

US Dial In: +1.866.394.0817

International Dial In: +1.706.679.9759

Conference ID: 1091 0461

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: 1091 0461

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 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.

 

5


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 SHEET

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

 

     June 30,
2012
     December 31,
2011
 
     (unaudited)         

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 41,061       $ 48,078   

Restricted cash

     11,165         8,468   

Accounts receivable, net

     4,484         4,835   

Prepaid expenses and other current assets

     404         2,177   
  

 

 

    

 

 

 

Total current assets

     57,114         63,558   
  

 

 

    

 

 

 

Vessels, net

     697,111         667,213   

Deferred financing costs, net

     2,196         2,466   

Other long term assets

     399         106   

Intangible assets

     179,704         176,581   
  

 

 

    

 

 

 

Total non-current assets

     879,410         846,366   
  

 

 

    

 

 

 

Total assets

   $ 936,524       $ 909,924   
  

 

 

    

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

     

Current liabilities

     

Accounts payable

   $ 1,566       $ 2,022   

Accrued expenses

     3,968         2,986   

Deferred voyage revenue

     11,144         10,920   

Current portion of long-term debt

     16,950         36,700   

Amounts due to related parties

     16,960         4,077   
  

 

 

    

 

 

 

Total current liabilities

     50,588         56,705   

Long-term debt

     273,500         289,350   

Deferred voyage revenue

     896         4,230   
  

 

 

    

 

 

 

Total non-current liabilities

     274,396         293,580   
  

 

 

    

 

 

 

Total liabilities

     324,984         350,285   
  

 

 

    

 

 

 

Commitments and contingencies

     —           —     

Partners’ capital:

     

Common Unitholders (60,109,163 and 46,887,320 units issued and outstanding at June 30, 2012 and December 31, 2011, respectively)

     609,180         729,550   

Subordinated Unitholders (0 and 7,621,843 units issued and outstanding at June 30, 2012 and December 31, 2011, respectively)

     —           (177,969

General Partner (1,226,721 units and 1,132,843 issued and outstanding at June 30, 2012 and December 31, 2011, respectively)

     2,360         1,976   

Subordinated Series A Unitholders (0 and 1,000,000 units issued and outstanding at June 30, 2012 and December 31, 2011, respectively)

     —           6,082   
  

 

 

    

 

 

 

Total partners’ capital

     611,540         559,639   
  

 

 

    

 

 

 

Total liabilities and partners’ capital

   $ 936,524       $ 909,924   
  

 

 

    

 

 

 

 

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

June 30, 2012
($ ‘000)
(unaudited)

   

Three Month

Period ended

June 30, 2011

($ ‘000)
(unaudited)

   

Six Month

Period ended

June 30, 2012

($ ‘000)

(unaudited)

   

Six Month

Period ended

June 30, 2011

($ ‘000)

(unaudited)

 

Time charter revenues

   $ 49,122      $ 45,675      $ 97,109      $ 88,479   

Time charter expenses

     (3,923     (3,241     (7,138     (6,192

Direct vessel expenses

     (13     (17     (25     (35

Management fees

     (7,323     (6,466     (14,557     (12,514

General and administrative expenses

     (1,267     (1,209     (2,552     (2,392

Depreciation and amortization

     (17,328     (15,637     (34,478     (29,670

Write-off of intangible asset

     —          (3,979     —          (3,979

Interest expense and finance cost, net

     (2,384     (2,009     (5,196     (4,038

Interest income

     29        381        155        631   

Other (expense)/ income, net

     (232     13        300        (179 )

Net income

   $ 16,681      $ 13,511      $ 33,618      $ 30,111   
Earnings per unit:         
     Three Month
Period ended
June 30, 2012
(unaudited)
    Three Month
Period ended
June 30, 2011
(unaudited)
    Six Month
Period ended
June 30, 2012
(unaudited)
    Six Month
Period ended
June 30, 2011
(unaudited)
 

Net income

   $ 16,681      $ 13,511      $ 33,618      $ 30,111   

Earnings attributable to:

        

Common unit holders

     16,348        13,241        32,946        27,864   

Subordinated unit holders

     —          —          —          1,645   

General partner unit holders

     333        270        672        602   

Subordinated Series A unit holders

     —          —          —          —     

Weighted average units outstanding (basic and diluted)

        

Common unit holders

     57,260,811        46,012,815        55,884,987        43,907,804   

Subordinated unit holders

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

General partner unit holders

     1,188,551        1,114,996        1,160,697        1,072,036   

Subordinated Series A unit holders

     —          1,000,000        —          1,000,000   

Earnings per unit- overall (basic and diluted):

        

Common unit holders

   $ 0.29      $ 0.29      $ 0.59      $ 0.63   

Subordinated unit holders

   $ —        $ —        $ —        $ 0.22   

General partner unit holders

   $ 0.28      $ 0.24      $ 0.58      $ 0.56   

 

8


NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

    

Six Month
Period Ended
June 30,

2012
(unaudited)

   

Six Month

Period Ended
June 30,

2011
(unaudited)

 

OPERATING ACTIVITIES

    

Net income

   $ 33,618      $ 30,111   

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

    

Depreciation and amortization

     34,478        29,670   

Write-off of intangible asset

     —          3,979   

Amortization of deferred financing cost

     272        254   

Amortization of deferred dry dock costs

     25        35   

Changes in operating assets and liabilities:

    

Increase in restricted cash

     (1     (1

Decrease/(increase) in accounts receivable

     351        (2,996

Decrease in prepaid expenses and other current assets

     1,773        289   

(Increase)/decrease in other long term assets

     (318     37   

(Decrease)/increase in accounts payable

     (456     604   

Increase in accrued expenses

     982        443   

Decrease in deferred voyage revenue

     (3,110     (4,257

Increase in amounts due to related parties

     4,883        3,702   

Net cash provided by operating activities

     72,497        61,870   

INVESTING ACTIVITIES:

    

Acquisition of vessels

     (40,820     (76,220

Acquisition of intangibles

     (18,681     (43,780

Net cash used in investing activities

     (59,501     (120,000

FINANCING ACTIVITIES:

    

Cash distributions paid

     (51,752     (45,840

Proceeds from issuance of general partner units

     1,472        2,052   

Proceeds from issuance of common units, net of offering costs

     68,563        86,288   

Proceeds from long term debt

     —          35,000   

Increase in restricted cash

     (2,696     (2,642

Repayment of long-term debt and payment of principal

     (35,600     (14,600

Debt issuance costs

     —          (414

Net cash (used in)/ provided by financing activities

     (20,013     59,844   

(Decrease)/increase in cash and cash equivalents

     (7,017     1,714   

Cash and cash equivalents, beginning of period

     48,078        51,278   

Cash and cash equivalents, end of period

   $ 41,061      $ 52,992   

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

    

Cash paid for interest

   $ 5,277      $ 3,692   

Due to Navios Holdings for the acquisition of Navios Buena Ventura in June 2012

   $ 8,000      $ —     

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

   $ —        $ 9,960   

 

9


EXHIBIT 2

 

Owned Vessels    Type    Built    Capacity
(DWT)
    

Charter Expiration

Date

  

Charter-Out

Rate (1)

 

Navios Apollon

  

Ultra-Handymax

   2000      52,073       February 2013    $ 12,500 (11) 
            February 2014    $ 13,500 (11) 

Navios Soleil

  

Ultra-Handymax

   2009      57,337       November 2012    $ 13,300   

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 (2)

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 (8) 

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(3)

  

Capesize

   2010      179,132       September 2022    $ 29,356 (4) 

Navios Luz

  

Capesize

   2010      179,144       November 2020    $ 29,356 (5) 

Navios Buena Ventura

  

Capesize

   2010      179,259       October 2020    $ 29,356 (5) 

Owned vessels to be delivered

  

Navios Helios(9)

  

Panamax

   2005      77,075       September 2013    $ 9,738   
Long-term Chartered-in Vessels   

Navios Prosperity (6)

  

Panamax

   2007      82,535       June 2013    $ 12,000 (10) 

Navios Aldebaran (7)

  

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) Profit sharing 50% above $16,984/ day based on Baltic Exchange Panamax TC Average.
(3) 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 pays Navios Partners directly.
(4) Profit sharing 50% above $37,500/ day based on Baltic Exchange Capesize TC Average.
(5) Profit sharing 50% above $38,500/ day based on Baltic Exchange Capesize TC Average.
(6) 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.
(7) 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.
(8) Amount represents daily rate of insurance proceeds following the default of the original charterer. The vessel has been rechartered to third parties.
(9) Estimated delivery date July 27, 2012.
(10) Profit sharing: The owners will receive 100% of the first $1,500 in profits above the base rate and thereafter all profits will be split 50% to each party.
(11) Profit sharing 50% on the actual results above the period rates.

 

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EXHIBIT 3

Disclosure of Non-GAAP Financial Measures

1. 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;

 

   

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.

 

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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
June 30, 2012

($ ‘000)
(unaudited)
    Three Month
Period ended
June 30, 2011

($ ‘000)
(unaudited)
    Six Month
Period ended
June 30, 2012

($ ‘000)
(unaudited)
    Six Month
Period ended
June 30, 2011

($ ‘000)
(unaudited)
 

Net Cash from Operating Activities

   $ 34,709      $ 30,597      $ 72,497      $ 61,870   

Net increase/(decrease) in operating assets

     726        955        (1,805     2,671   

Net decrease/(increase) in operating liabilities

     (1,279     1,722        (2,299     (492

Net interest cost

     2,355        1,628        5,041        3,407   

Write-off of intangible asset

     —          (3,979     —          (3,979

Deferred finance charges

     (134     (130     (272     (254
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

   $ 36,377      $ 30,793      $ 73,162      $ 63,223   

Write-off of intangible asset

     —          3,979        —          3,979   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 36,377      $ 34,772      $ 73,162      $ 67,202   

Cash interest income

     93        353        188        598   

Cash interest paid

     (2,448     (1,883     (5,277     (3,692

Maintenance and replacement capital expenditures

     (4,525     (4,569     (8,986     (8,912
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Surplus

   $ 29,497      $ 28,673      $ 59,087      $ 55,196   

Cash distribution paid relating to the first quarter

     —          —          (26,923     (23,939

Cash reserves

     (1,934     (3,844     (4,601     (6,428
  

 

 

   

 

 

   

 

 

   

 

 

 

Available cash for distribution

   $ 27,563      $ 24,829      $ 27,563      $ 24,829   

(1)

        
     Three Month
Period ended
June 30, 2012
($ ‘000)
(unaudited)
    Three Month
Period ended
June 30, 2011
($ ‘000)
(unaudited)
    Six Month
Period ended
June 30, 2012
($ ’00 0)
(unaudited)
    Six Month
Period ended
June 30, 2011
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 34,709      $ 30,597      $ 72,497      $ 61,870   

Net cash used in investing activities

     (59,501     (120,000 )     (59,501     (120,000 )

Net cash provided by/(used in) financing activities

     32,357        89,045        (20,013     59,844   

 

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