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: March 27, 2013

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 March 27, 2013, Navios Maritime Partners L.P. (“Navios Partners”) entered into a supplemental agreement to the facility agreement, dated July 31, 2012, with DVB Bank SE and Commerzbank AG, previously supplemented on December 4, 2012, to revise the lender majority vote requirement and expand the definition of Security Value (the “Second Supplemental Agreement”). The Second Supplemental Agreement is attached as Exhibit 10.1 to this report and is incorporated herein by reference.

On April 25, 2013, Navios Partners issued a press release announcing its financial results for the first quarter ended March 31, 2013. 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, except the second and third paragraph of Exhibit 99.1, which contain certain quotes by the Chairman and Chief Executive Officer of Navios Partners, 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: May 2, 2013


EXHIBIT INDEX

 

Exhibit
No.
   Exhibit
10.1    Supplemental Agreement, dated March 27, 2013, to Facility Agreement for $290.45 million term loan facility, dated July 31, 2012
99.1    Press Release dated April 25, 2013
EX-10.1

Exhibit 10.1

 

From   DVB Bank SE
  Platz der Republik 6
  D-60325
  Frankfurt Am Main
  Germany
To:   Navios Maritime Partners L.P.
  Trust Company Complex
  Ajeltake Road , Ajeltake Island
  Majuro, Marshall Islands, MH96960

27 March 2013

Dear Sirs

 

Re: Loan agreement dated as of 31 July 2012 (as amended and supplemented by a supplemental agreement dated 4 December 2012, the “Loan Agreement”) and made between (1) Navios Maritime Partners L.P. of the Marshall Islands as Borrower, (2) DVB Bank SE and Commerzbank AG as Lenders, (3) DVB Bank SE as Joint-Arranger, Agent and Security Trustee and (4) Commerzbank AG as Joint-Arranger, Payment Agent and, Account Bank

We refer to the Loan Agreement. Terms defined in the Loan Agreement shall have the same meanings when used in this letter.

At your request we hereby agree that, with effect from the date of this letter, the Loan Agreement be amended by:

 

1. deleting in the definition of “Majority Lenders” (a) the words “when there are two Lenders, both of them, and at any time when there are more than two Lenders,” and (b) the figure “75%” and replacing it with “69.99%”; and

 

2. adding at the end of the definition of “Security Value” the words “and (c) cash standing to the credit of the Retention Account (excluding the Retention Amounts) over which there is an Encumbrance as security for the obligations of the Borrower under this Agreement”.

Save for the amendments referred to above, the Loan Agreement and the other Security Documents shall continue in full force and effect.

This letter may be executed in any number of counterparts.

This letter shall be governed by, and construed in accordance with, English law.

Yours faithfully,

 

/s/ Ronan Le Du

RONAN LE DU

for and on behalf of

DVB BANK SE

as Agent


We hereby confirm our acceptance of and our agreement to the terms and conditions of the above letter.

Dated 27 March 2013

 

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU
For and on behalf of
NAVIOS MARITIME PARTNERS L.P.

We on this 27th day of March 2013 hereby confirm and acknowledge that we have read and understood the terms and conditions of the above letter and agree in all respects to the same and confirm that the Security Documents to which we are a party shall remain in full force and effect and shall continue to stand as security for the obligations of the Borrowers under the Loan Agreement and shall, without limitation, secure the Loan.

 

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
NAVIOS MARITIME OPERATING L.L.C.       NAVIOS SHIPMANAGEMENT INC.

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
LIBRA SHIPPING ENTERPRISES       ALEGRIA SHIPPING CORPORATION
CORPORATION      

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
FANTASTIKS SHIPPING CORPORATION       FELICITY SHIPPING CORPORATION

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
GALAXY SHIPPING CORPORATION       GEMINI SHIPPING CORPORATION

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
AURORA SHIPPING ENTERPRISES LTD.       HYPERION ENTERPRISES INC.

 

2


/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
SAGITTARIUS SHIPPING CORPORATION       PALERMO SHIPPING S.A.

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
CHILALI CORP.       SURF MARITIME CO.

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
ALDEBARAN SHIPPING CORPORATION       PROSPERITY SHIPPING CORPORATION

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
CUSTOMIZED DEVELOPMENT S.A.       PANDORA MARINE INC.

/s/ Vasiliki Papaefthymiou

     

/s/ Vasiliki Papaefthymiou

VASILIKI PAPAEFTHYMIOU       VASILIKI PAPAEFTHYMIOU
For and on behalf of       For and on behalf of
KOHYLIA SHIPMANAGEMENT S.A.       ORBITER SHIPPING CORP.

/s/ Vasiliki Papaefthymiou

     
VASILIKI PAPAEFTHYMIOU      
For and on behalf of      
JTC SHIPPING & TRADING LTD      

 

3

EX-99.1

Exhibit 99.1

Navios Maritime Partners L.P.

Reports Financial Results for the First Quarter Ended March 31, 2013

 

   

Cash distribution of $0.4425 per unit for Q1 2013

 

   

4.8% increase in quarterly Revenue to $50.3 million

 

   

5.4% increase in quarterly Operating Surplus to $31.2 million

 

   

Acquisition of four vessels

PIRAEUS, GREECE, April 25, 2013 – Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an owner and operator of dry cargo vessels, today reported its financial results for the first quarter ended March 31, 2013.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: “Navios Partners has become a key player in the dry bulk industry. Consistent performance has enabled us to position our business well in the face of challenging commodities markets. We have found that Navios Partners’ stability and brand is a competitive advantage in dealing with parties who are considering long-term exposure.”

Angeliki Frangou continued, “We have been patiently seeking appropriate vessels for Navios Partners in the open market for a while. As a result of the recent devaluation of the Japanese yen, some of our Japanese partners were able to transact for the first time in a few years. In a relatively short period of time, we acquired four vessels from leading Japanese shipyards with an average age of 3.75 years for $108 million. As a result, two newbuildings and two relatively young vessels will be delivered in the fourth quarter of this year. The flexibility in delivery dates should allow us to employ the vessels at what we expect to be more favorable rates than the current market.”

RECENT DEVELOPMENTS

Cash Distribution

The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2013 of $0.4425 per unit. The cash distribution is payable on May 14, 2013 to unitholders of record on May 10, 2013.

Vessel Acquisitions

Navios Partners has agreed to acquire the following four Japanese-built vessels for a total consideration of $108.0 million.

 

Type

   Year Built    DWT    Delivery

Capesize

   Newbuilding    180,000    Q4 2013

Ultra-Handymax

   Newbuilding    61,000    Q1 2014

Kamsarmax

   2006    82,790    Q4 2013

Panamax

   2005    76,619    Q4 2013

The acquisition of the vessels is expected to be partially financed by 50% bank debt, consistent with its existing credit facilities.

 

1


Credit Facilities

In March 2013, Navios Partners amended the credit facility dated July 2012 and prepaid $50.0 million. The prepayment was applied as follows: $15.0 million to installments due in 2013, $26.8 million to installments due in 2014 and $8.2 million relating to installments due in 2015 and onward. As of March 31, 2013, the outstanding balance was $201.6 million. The facility bears margin ranging from 180 to 205 bps per annum depending on the loan amount compared to the security value.

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 2.8 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 84.8% of its available days for 2013, 40.5% for 2014 and 33.8% for 2015, generating revenues of approximately $173.6 million, $113.8 million and $97.1 million, respectively. The average contractual daily charter-out rate for the fleet is $25,728, $30,766 and $31,452 for 2013, 2014 and 2015, respectively. The average daily charter-in rate for the charter-in vessels is $13,513 for 2013.

We have insured certain of our long-term charter-out contracts until the end of 2016, either through a “AA” rated European Union insurance provider up to a maximum cash payment of $120.0 million or through a separate agreement with Navios Holdings up to a maximum cash payment of $20.0 million.

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 ended March 31, 2013 and 2012. The quarterly 2013 and 2012 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.

 

(in $ ‘000 except per unit data)    Three Month
Period  ended

March 31, 2013
(unaudited)
    Three Month
Period ended
March 31, 2012
(unaudited)
 

Revenue

   $ 50,281      $ 47,987   

Net income

   $ 16,246      $ 16,937   

EBITDA

   $ 37,054      $ 36,785   

Earnings per Common unit (basic and diluted)

     0.24        0.30   

Operating Surplus

   $ 31,215      $ 29,590   

Maintenance and Replacement Capital expenditure reserve

   $ (3,467   $ (4,461

Three month periods ended March 31, 2013 and 2012

Time charter revenues for the three month period ended March 31, 2013 increased by $2.3 million or 4.8% to $50.3 million, as compared to $48.0 million for the same period in 2012. The increase was mainly attributable to the acquisition of the Navios Buena Ventura on June 15, 2012, the acquisition of the Navios Soleil on July 24, 2012 and the acquisition of the Navios Helios on July 27, 2012. As a result of the vessel acquisitions, available days of the fleet increased to 1,890 days for the three month period ended March 31, 2013, as compared to 1,576 days for the three month period ended March 31, 2012. Time charter equivalent (“TCE”) decreased to $26,244 for the three month period ended March 31, 2013, from $29,978 for the three month period ended March 31, 2012.

EBITDA increased by $0.3 million to $37.1 million for the three month period ended March 31, 2013, as compared to $36.8 million for the same period in 2012. The increase in EBITDA was due to a $2.3 million increase in revenue following the acquisitions of the vessels discussed above and a $0.1 million decrease in time charter expenses. The above increase was partially offset by a $1.3 million increase in management fees due to the increased number of vessels, a $0.3 million increase in general and administrative expenses and a $0.5 million decrease in other income.

 

2


The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2013 and 2012 was $3.5 million and $4.5 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Partners generated an Operating Surplus for the three month period ended March 31, 2013 of $31.2 million, as compared to $29.6 million for the three month period ended March 31, 2012. 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 March 31, 2013 amounted to $16.2 million compared to $16.9 million for the three months ended March 31, 2012. The decrease in net income by $0.7 million was due to a $0.3 million increase in EBITDA and a $0.4 million decrease in interest expense and finance cost, net partially off-set by: (i) a $0.1 million decrease in interest income; and (ii) a $1.2 million increase in depreciation and amortization expense due to the acquisitions of the Navios Buena Ventura, the Navios Soleil and the Navios Helios and the favorable lease terms recognized in relation to the Navios Buena Ventura.

Fleet Employment Profile

The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month periods ended March 31, 2013 and 2012.

 

     Three Month
Period ended
March 31,

2013
    Three Month
Period ended
March 31,

2012
 
     (Unaudited)     (Unaudited)  

Available Days (1)

     1,890        1,576   

Operating Days (2)

     1,886        1,574   

Fleet Utilization (3)

     99.81     99.88

Time Charter Equivalent (per day) (4)

   $ 26,244      $ 29,978   

Vessels operating at period end

     21        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.

 

3


Conference Call details:

Navios Partners’ management will host a conference call today, Thursday, April 25, 2013 to discuss the results for the first quarter ended March 31, 2013.

Conference Call details:

Call Date/Time: Thursday, April 25, 2013 at 08:30 am ET

Call Title: Navios Partners Q1 2013 Financial Results Conference Call

US Dial In: +1.866.394.0817

International Dial In: +1.706.679.9759

Conference ID: 3095 8978

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: 3095 8978

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 8:00 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

 

4


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.

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

 

5


EXHIBIT 1

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED BALANCE SHEET

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

 

     March 31,
2013
     December 31,
2012
 
     (unaudited)         

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 73,892       $ 32,132   

Restricted cash

     1,267         29,529   

Accounts receivable, net

     9,018         7,778   

Prepaid expenses and other current assets

     584         594   
  

 

 

    

 

 

 

Total current assets

     84,761         70,033   
  

 

 

    

 

 

 

Vessels, net

     712,592         721,391   

Deferred financing costs, net

     3,531         2,767   

Other long term assets

     58         282   

Intangible assets

     150,867         160,479   
  

 

 

    

 

 

 

Total non-current assets

     867,048         884,919   
  

 

 

    

 

 

 

Total assets

   $ 951,809       $ 954,952   
  

 

 

    

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

     

Current liabilities

     

Accounts payable

   $ 2,369       $ 2,090   

Accrued expenses

     2,471         3,599   

Deferred voyage revenue

     5,239         9,112   

Current portion of long-term debt

     4,700         23,727   

Amounts due to related parties

     21,677         21,748   
  

 

 

    

 

 

 

Total current liabilities

     36,456         60,276   
  

 

 

    

 

 

 

Long-term debt

     239,085         275,982   
  

 

 

    

 

 

 

Total non-current liabilities

     239,085         275,982   
  

 

 

    

 

 

 

Total liabilities

     275,541         336,258   
  

 

 

    

 

 

 

Commitments and contingencies

     —           —     

Partners’ capital:

     

Common Unitholders (65,284,163 and 60,109,163 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively)

     672,958         616,604   

General Partner (1,332,334 and 1,226,721 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively)

     3,310         2,090   

Total partners’ capital

     676,268         618,694   
  

 

 

    

 

 

 

Total liabilities and partners’ capital

   $ 951,809       $ 954,952   
  

 

 

    

 

 

 

 

6


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
March 31,

2013
(unaudited)
    Three Month
Period ended
March 31,

2012
(unaudited)
 

Time charter revenues

   $ 50,281      $ 47,987   

Time charter expenses

     (3,112     (3,215

Direct vessel expenses

     —          (12

Management fees

     (8,491     (7,234

General and administrative expenses

     (1,609     (1,285

Depreciation and amortization

     (18,411     (17,150

Interest expense and finance cost, net

     (2,405     (2,812

Interest income

     8        126   

Other income

     44        558   

Other expense

     (59     (26
  

 

 

   

 

 

 

Net income

   $ 16,246      $ 16,937   
  

 

 

   

 

 

 

Earnings per unit:

 

     Three Month
Period  ended
March 31,
2013
(unaudited)
     Three Month
Period ended
March 31,
2012
(unaudited)
 

Net income

   $ 16,246       $ 16,937   

Earnings attributable to:

     

Common unit holders

     15,472         16,598   

Weighted average units outstanding (basic and diluted):

     

Common unit holders

     63,214,163         54,509,163   

Earnings per unit overall (basic and diluted):

     

Common unit holders

   $ 0.24       $ 0.30   

 

7


NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Three Month
Period Ended
March 31,
2013
(unaudited)
    Three Month
Period Ended
March 31,

2012
(unaudited)
 

OPERATING ACTIVITIES

    

Net income

   $ 16,246      $ 16,937   

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

    

Depreciation and amortization

     18,411        17,150   

Amortization of deferred financing cost

     536        138   

Amortization of deferred dry dock costs

     —          12   

Changes in operating assets and liabilities:

    

Increase in restricted cash

     (1     (1

(Increase)/decrease in accounts receivable

     (1,240     1,187   

Decrease in prepaid expenses and other current assets

     10        1,778   

Decrease/(increase) in other long term assets

     224        (433

Increase/(decrease) in accounts payable

     279        (382

Decrease in accrued expenses

     (1,128     (143

Decrease in deferred voyage revenue

     (3,873     (2,250

(Decrease)/increase in amounts due to related parties

     (71     3,795   
  

 

 

   

 

 

 

Net cash provided by operating activities

     29,393        37,788   
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Cash distributions paid

     (29,936     (24,829 )

Net proceeds from issuance of general partner units

     1,494        —     

Proceeds from issuance of common units, net of offering costs

     69,770        —     

Decrease in restricted cash

     28,263        7,434   

Repayment of long-term debt and payment of principal, net of expenses

     (57,224     (34,975 )
  

 

 

   

 

 

 

Net cash provided by/(used in) financing activities

     12,367        (52,370
  

 

 

   

 

 

 

Increase/(decrease) in cash and cash equivalents

     41,760        (14,582
  

 

 

   

 

 

 

Cash and cash equivalents, beginning of period

     32,132        48,078   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 73,892      $ 33,496   
  

 

 

   

 

 

 

 

8


EXHIBIT 2

 

Owned Vessels    Type    Built    Capacity (DWT)    Charter Expiration
Date
  

Charter-Out

Rate (1)

 

Navios Apollon

   Ultra-Handymax    2000    52,073    February 2014    $ 13,500 (2) 

Navios Soleil

   Ultra-Handymax    2009    57,337    December 2013    $ 8,906   

Navios TBN I(3)

   Ultra-Handymax    2014    61,000    —        —     

Navios Gemini S

   Panamax    1994    68,636    February 2014    $ 24,225   

Navios Libra II

   Panamax    1995    70,136    September 2015    $ 12,000 (2) 

Navios Felicity

   Panamax    1997    73,867    May 2013    $ 26,169   

Navios Galaxy I

   Panamax    2001    74,195    February 2018    $ 21,937   

Navios Helios

   Panamax    2005    77,075    September 2013    $ 9,738   

Navios Hyperion

   Panamax    2004    75,707    April 2014    $ 37,953   

Navios Alegria

   Panamax    2004    76,466    February 2014    $ 16,984 (4)

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 TBN II(5)

   Panamax    2006    82,790    —        —     

Navios TBN III (5)

   Panamax    2005    76,619    —        —     

Navios Fantastiks

   Capesize    2005    180,265    March 2014    $ 14,678   

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(6)

   Capesize    2010    179,132    September 2022    $ 29,356 (7) 

Navios Luz

   Capesize    2010    179,144    November 2020    $ 29,356 (8) 

Navios Buena Ventura

   Capesize    2010    179,259    October 2020    $ 29,356 (8) 

Navios TBN IV (5)

   Capesize    2013    180,000    —        —     

Chartered-in Vessels

              

Navios Prosperity (9)

   Panamax    2007    82,535    June 2013    $ 12,000 (11) 

Navios Aldebaran (10)

   Panamax    2008    76,500    May 2013    $ 14,725   

 

(1) Net time charter-out rate per day (net of commissions).These rates do not include insurance proceeds received upfront in December 2012.
(2) Profit sharing 50% on the actual results above the period rates.
(3) Expected to be delivered in the first quarter of 2014.
(4) Profit sharing 50% above $16,984/ day based on Baltic Exchange Panamax TC Average.
(5) Expected to be delivered in the fourth quarter of 2013.
(6) 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.
(7) Profit sharing 50% above $37,500/ day based on Baltic Exchange Capesize TC Average.
(8) Profit sharing 50% above $38,500/ day based on Baltic Exchange Capesize TC Average.
(9) 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.
(10) 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.
(11) 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.

 

9


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.

EBITDA is 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 is a “non-GAAP financial measure” 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 is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of 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 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.

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.

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 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.

 

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4. Reconciliation of Non-GAAP Financial Measures

 

     Three Month
Period ended
March 31,

2013
($ ‘000)
(unaudited)
    Three Month
Period ended
March 31,

2012
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 29,393      $ 37,788   

Net decrease/(increase) in operating assets

     1,007        (2,531

Net increase/(decrease) in operating liabilities

     4,793        (1,020

Net interest cost

     2,397        2,686   

Amortization of deferred financing cost

     (536     (138
  

 

 

   

 

 

 

EBITDA(1)

   $ 37,054      $ 36,785   

Cash interest income

     9        95   

Cash interest paid

     (2,381     (2,829

Maintenance and replacement capital expenditures

     (3,467     (4,461
  

 

 

   

 

 

 

Operating Surplus

   $ 31,215      $ 29,590   

Cash reserves

     (1,279     (4,761
  

 

 

   

 

 

 

Available cash for distribution

   $ 29,936      $ 24,829   
  

 

 

   

 

 

 

 

(1)     

 

     Three Month
Period ended
March 31, 2013
($ ’000)
(unaudited)
     Three Month
Period ended
March 31, 2012
($ ’000)
(unaudited)
 

Net cash provided by operating activities

   $ 29,393       $ 37,788   

Net cash provided by/(used in) financing activities

   $ 12,367       $ (52,370

 

11