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 29, 2014

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

7 Avenue de Grande Bretagne, Office 11B2

Monte Carlo, MC 98000 Monaco

(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 29, 2014, Navios Maritime Partners L.P. (“Navios Partners”) issued a press release announcing its financial results for the fourth quarter and year ended December 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. 333-192176.


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: February 10, 2014


EXHIBIT INDEX

 

Exhibit No.    Exhibit
99.1    Press Release dated January 29, 2014
EX-99.1

Exhibit 99.1

Navios Maritime Partners L.P.

Reports Financial Results for the Fourth Quarter and

Year Ended December 31, 2013

Net Income:

  $10.1 million in Q4; $59.0 million for the year

EBITDA:

  $35.6 million in Q4; $153.4 million for the year

Operating Surplus:

  $26.1 million in Q4; $125.5 million for the year

Entered container segment

  Delivery of five container vessels in December 2013

Delivery and charter of four Japanese-built drybulk vessels

Dividend of $0.4425 per common unit for Q4

 

 

Monaco, January 29, 2014 – 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 year ended December 31, 2013.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: “Navios Partners previously announced that it was committed to a minimum distribution of $1.77 through 2014 and today extends this through the year 2015. Moreover, as drybulk shipping recovers and the charter rates improve, we will be positioned to increase distributions in the medium term.”

Angeliki Frangou continued, “2013 was a transformational year. During the year, we engaged in a novel financing through the Term Loan B, broadening our access to debt capital, and entered a new businesses line, the container segment, by mitigating market risk through using long-term charters. We also renewed our fleet by opportunistically purchasing four Japanese-built drybulk vessels. As the cycle is turning, our hard work of the past year is evident and we are positioned to reap the benefits.”

RECENT DEVELOPMENTS

Cash Distribution

The Board of Directors of Navios Partners declared a cash distribution for the fourth quarter of 2013 of $0.4425 per unit. The cash distribution is payable on February 14, 2014 to unitholders of record on February 10, 2014.

Add-on to the Term Loan B

On November 1, 2013, Navios Partners completed the issuance of $189.5 million add-on to its existing Term Loan B facility. The add-on to the Term Loan B bears an interest rate of LIBOR +425 basis points and has a five year term maturing in June 2018, with a 1.0% amortization profile. Navios Partners used the net proceeds to partially finance the acquisition of five container vessels.

Vessel deliveries

In January 2014, Navios Partners took delivery of the Navios Sun, a 2005-built Panamax vessel of 76,619 dwt. The

 

1


Navios Sun has been chartered out to a high quality counterparty for 12 to 14 months at a rate of $13,063 net per day.

In January 2014, Navios Partners took delivery of the Navios La Paix, a newbuilding ultra-Handymax vessel of 61,485 dwt. The Navios La Paix has been chartered out to a high quality counterparty for about two years based on the Supramax time charter Index plus 10%, with a minimum rate of $9,500, net per day.

In December 2013, Navios Partners took delivery of the Hyundai Hongkong, the Hyundai Singapore, the Hyundai Tokyo, the Hyundai Shanghai and the Hyundai Busan, all 2006-built container vessels of 6,800 TEU each. All five vessels have been chartered out to an investment grade counterparty for ten years (with Navios Partners’ option to terminate after year seven), at a rate of $30,119 net per day per vessel

In October 2013, Navios Partners took delivery of the Navios Harmony, 2006-built Panamax vessel of 82,790 dwt. The Navios Harmony has been chartered out to a high quality counterparty for four to six months at a rate of $14,725 net per day.

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 3.4 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 74.7% of its available days for 2014, 52.6% for 2015 and 41.5% for 2016, expecting to generate revenues of approximately $197.8 million, $163.5 million and $138.1 million, respectively. The average expected daily charter-out rate for the fleet is $24,233 for 2014, $28,384 for 2015 and $30,324 for 2016. The average daily charter-in rate for the charter-in vessels is $13,513 for 2014.

Navios Partners has insured certain long-term charter-out contracts of drybulk vessels for credit default occurring until the end of 2016, either through a “AA” rated European Union insurance provider up to a maximum cash payment of $120.0 million initially or through a separate agreement with Navios Maritime Holdings Inc. 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 months periods and years ended December 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

December 31,
2013
(unaudited)

     Three Month
Period Ended
December 31,
2012
(unaudited)
    Year Ended
December 31,
2013
(unaudited)
     Year Ended
December 31,
2012
(unaudited)
 

Revenue

   $ 52,146       $ 52,786      $ 198,159       $ 205,435   

Net income

   $ 10,126       $ 40,137   $ 59,006       $ 95,898

EBITDA

   $ 35,629       $ 61,251   $ 153,371       $ 177,443

Earnings per Common unit (basic and diluted)

   $ 0.13       $ 0.65   $ 0.84       $ 1.61

Operating Surplus

   $ 26,093       $ 54,150   $ 125,503       $ 148,879

Maintenance and Replacement Capital expenditure reserve

   $ 4,143       $ 4,942      $ 14,593       $ 18,869   

 

* Positively affected by $22.5 million accounting effect from the restructuring of credit default insurance.

Three month periods ended December 31, 2013 and 2012

Time charter and voyage revenues for the three month period ended December 31, 2013 decreased by $0.6 million

 

2


or 1.2% to $52.1 million, as compared to $52.8 million for the same period in 2012. The decrease in time charter and voyage revenues was due to the decrease in time charter equivalent (“TCE”) to $22,682 for the three month period ended December 31, 2013, from $27,297 for the three month period ended December 31, 2012. The above decrease was partially mitigated by the increase in time charter and voyage revenues due to the acquisitions of the Navios Joy on September 11, 2013, the Navios Harmony on October 11, 2013 and the acquisition of five container vessels in December 2013. As a result of the vessel acquisitions, available days of the fleet increased to 2,216 days for the three month period ended December 31, 2013, as compared to 1,914 days for the three month period ended December 31, 2012.

EBITDA decreased by $25.6 million to $35.6 million for the three month period ended December 31, 2013, as compared to $61.3 million for the same period in 2012. The decrease in EBITDA was mainly due to a $21.9 million decrease in other income due to a $22.5 million accounting effect from the restructuring of credit default insurance in November 2012, a $0.6 million decrease in revenue, a $1.4 million increase in time charter and voyage expenses due to an increase in voyage expenses incurred, a $1.6 million increase in management fees due to the increased number of vessels, and a $0.2 million increase in general and administrative expenses. The above decrease was partially mitigated by a $0.1 million decrease in other expenses.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended December 31, 2013 and 2012 was $4.1 million and $4.9 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 December 31, 2013 of $26.1 million, as compared to $54.2 million for the three month period ended December 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 December 31, 2013 amounted to $10.1 million compared to $40.1 million for the three months ended December 31, 2012. The decrease in net income by $30.0 million was due to a $25.6 million decrease in EBITDA, a $3.7 million increase in interest expense and finance cost, net and a $0.6 million increase in depreciation and amortization expense due to the increased fleet size.

Years ended December 31, 2013 and 2012

Time charter and voyage revenues for the year ended December 31, 2013 decreased by $7.3 million or 3.5% to $198.2 million, as compared to $205.4 million for the same period in 2012. The decrease in time charter and voyage revenues was due to the decrease in time charter equivalent to $24,284 for the year ended December 31, 2013, from $28,907 for the year ended December 31, 2012. The above decrease was partially mitigated by the increase in time charter and voyage revenues due to the acquisitions of the Navios Buena Ventura on June 15, 2012, the Navios Soleil on July 24, 2012, the Navios Helios on July 27, 2012, the Navios Joy on September 11, 2013, the Navios Harmony on October 11, 2013 and the acquisition of five container vessels in December 2013. As a result of the vessel acquisitions, available days of the fleet increased to 7,952 days for the year ended December 31, 2013, as compared to 7,002 days for the year ended December 31, 2012.

EBITDA decreased by approximately $24.1 million to $153.4 million for the year ended December 31, 2013, as compared to $177.4 million for the same period in 2012. The decrease in EBITDA was due to a $7.3 million decrease in revenue, a $2.0 million increase in time charter and voyage expenses due to an increase in voyage expenses incurred, a $4.5 million increase in management fees due to the increased number of vessels, a $0.7 million increase in general and administrative expenses, a $8.9 million decrease in other income and a $0.7 million increase in other expenses.

The reserve for estimated maintenance and replacement capital expenditures for the years ended December 31, 2013 and 2012 was $14.6 million and $18.9 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

 

3


Navios Partners generated an Operating Surplus for the year ended December 31, 2013 of $125.5 million, as compared to $148.9 million for the year ended December 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 year ended December 31, 2013 amounted to $59.0 million compared to $95.9 million for the year ended December 31, 2012. The decrease in net income by $36.9 million was due to a $24.1 million decrease in EBITDA, a $6.9 million increase in interest expense and finance cost, net and a $5.9 million increase in depreciation and amortization expense due to the increased fleet size.

Fleet Employment Profile

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

 

     Three Month
Period Ended
December 31 2013
(unaudited)
    Three Month
Period Ended
December 31, 2012
(unaudited)
    Year Ended
December 31, 2013
(unaudited)
    Year Ended
December 31, 2012

(unaudited)
 

Available Days (1)

     2,216        1,914        7,952        7,002   

Operating Days (2)

     2,195        1,912        7,923        6,984   

Fleet Utilization (3)

     99.0     99.9     99.6     99.8

Time Charter Equivalent (per day) (4)

   $ 22,682      $ 27,297      $ 24,284      $ 28,907   

Vessels operating at period end

     28        21        28        21   

 

(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.

Conference Call details:

Navios Partners’ management will host a conference call today, Wednesday, January 29, 2014 to discuss the results for the fourth quarter and year ended December 31, 2013.

Conference Call details:

Call Date/Time: Wednesday, January 29, 2014 at 08:30 am ET

 

4


Call Title: Navios Partners Q4 2013 Financial Results Conference Call

US Dial In: +1.866.394.0817

International Dial In: +1.706.679.9759

Conference ID: 3139 9304

 

 

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: 3139 9304

 

 

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

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 drybulk 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

Navios Maritime Partners L.P.

+1 (212) 906 8645

Investors@navios-mlp.com

 

5


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)

 

     December 31,
2013
(unaudited)
     December 31,
2012
 

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 35,346       $ 32,132   

Restricted cash

     1,177         29,529   

Accounts receivable, net

     16,298         7,778   

Prepaid expenses and other current assets

     1,663         594   
  

 

 

    

 

 

 

Total current assets

     54,484         70,033   
  

 

 

    

 

 

 

Vessels, net

     1,026,153         721,391   

Deposits for vessels acquisitions

     7,271           

Deferred financing costs, net

     8,463         2,767   

Other long term assets

     94         282   

Loans receivable from related parties

     780           

Intangible assets

     119,405         160,479   

Restricted cash

     33,429           
  

 

 

    

 

 

 

Total non-current assets

     1,195,595         884,919   
  

 

 

    

 

 

 

Total assets

   $ 1,250,079       $ 954,952   
  

 

 

    

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

     

Current liabilities

     

Accounts payable

   $ 3,171       $ 2,090   

Accrued expenses

     3,876         3,599   

Deferred voyage revenue

     2,997         9,112   

Current portion of long-term debt

     5,358         23,727   

Amounts due to related parties

     204         21,748   
  

 

 

    

 

 

 

Total current liabilities

     15,606         60,276   
  

 

 

    

 

 

 

Long-term debt, net of current portion and discount

     527,966         275,982   
  

 

 

    

 

 

 

Total non-current liabilities

     527,966         275,982   
  

 

 

    

 

 

 

Total liabilities

     543,572         336,258   
  

 

 

    

 

 

 

Commitments and contingencies

             

Partners’ capital:

     

Common Unitholders (71,034,163 and 60,109,163 units issued and outstanding at December 31, 2013 and December 31, 2012, respectively)

     702,478         616,604   

General Partner (1,449,681 and 1,226,721 units issued and outstanding at December 31, 2013 and December 31, 2012, respectively)

     4,029         2,090   
  

 

 

    

 

 

 

Total partners’ capital

     706,507         618,694   
  

 

 

    

 

 

 

Total liabilities and partners’ capital

   $ 1,250,079       $ 954,952   
  

 

 

    

 

 

 

 

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,
2013

($ ‘000)
(unaudited)
    Three Month
Period Ended
December 31,
2012

($ ‘000)
(unaudited)
    Year Ended
December 31,
2013

($ ‘000)
(unaudited)
    Year Ended
December 31,
2012

($ ‘000)
 

Time charter and voyage revenues (includes related party revenue of $23,738 and $7,357 for the years ended December 31, 2013 and 2012, respectively)

   $ 52,146      $ 52,786      $ 198,159      $ 205,435   

Time charter and voyage expenses

     (4,386     (3,027 )     (14,943     (12,937

Direct vessel expenses

                          (25

Management fees (entirely through related parties transactions)

     (10,308     (8,680 )     (36,173     (31,689

General and administrative expenses

     (1,853     (1,681 )     (6,305     (5,555

Depreciation and amortization

     (19,273     (18,648 )     (77,505     (71,622

Write-off of intangible asset

                           

Interest expense and finance cost, net

     (6,258     (2,516 )     (16,910     (10,127

Interest income

     28        50        50        229   

Other income

     284        22,196        13,730        22,598   

Other expense

     (254     (343     (1,097     (409
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 10,126      $ 40,137      $ 59,006      $ 95,898   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per unit:

 

     Three Month
Period Ended
December 31,
2013
(unaudited)
     Three Month
Period
Ended
December 31,
2012
(unaudited)
     Year Ended
December 31,
2013
(unaudited)
     Year Ended
December 31,
2012
 

Net income

   $ 10,126       $ 40,137       $ 59,006       $ 95,898   

Earnings per unit:

           

Common unit (basic and diluted)

   $ 0.13       $ 0.65       $ 0.84       $ 1.61   

 

8


NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Year Ended
December 31,
2013
(unaudited)
    Year Ended
December 31,
2012
 

OPERATING ACTIVITIES

    

Net income

   $ 59,006      $ 95,898   

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

    

Depreciation and amortization

     77,505        71,622   

Write-off of intangible asset

              

Amortization and write-off of deferred financing cost

     4,035        787   

Amortization of deferred dry dock costs

            25   

Changes in operating assets and liabilities:

    

Net increase in restricted cash

     (2     (3

Increase in accounts receivable

     (8,520 )     (2,943 )

(Increase)/decrease in prepaid expenses and other current assets

     (1,069     1,583   

(Decrease)/ increase in other long term assets

     188        (202 )

Increase in accounts payable

     1,081        68   

Increase in accrued expenses

     277        613   

Decrease in deferred voyage revenue

     (6,115     (6,038 )

(Decrease)/increase in amounts due to related parties

     (21,544     17,671   
  

 

 

   

 

 

 

Net cash provided by operating activities

     104,842        179,081   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of vessels

     (341,193     (46,307

Acquisition of vessels from related parties

            (42,198

Deposits for acquisition of vessels

     (7,271       

Acquisition of intangibles

              

Acquisition of intangibles from related parties

            (21,193

Loans receivable from related party

     (780       

Increase in restricted cash

     (98,179       

Release of restricted cash for vessel acquisitions

     64,750          
  

 

 

   

 

 

 

Net cash used in investing activities

     (382,673     (109,698
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Cash distributions paid

     (122,382     (106,878 )

Net proceeds from issuance of general partner units

     3,167        1,472   

Proceeds from issuance of common units, net of offering costs

     148,022        68,563   

Proceeds from long term debt

     434,500        44,000   

Net decrease/(increase) in restricted cash

     28,354        (21,058 )

Repayment of long-term debt and payment of principal

     (201,412     (70,340 )

Debt issuance costs

     (9,204     (1,088 )
  

 

 

   

 

 

 

Net cash provided by/(used in) financing activities

     281,045        (85,329 )
  

 

 

   

 

 

 

Increase/(decrease) in cash and cash equivalents

     3,214        (15,946 )
  

 

 

   

 

 

 

Cash and cash equivalents, beginning of period

     32,132        48,078   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 35,346      $ 32,132   
  

 

 

   

 

 

 

 

9


EXHIBIT 2

 

Owned Vessels

  

Type

   Built      Capacity
(DWT)
 

Navios Apollon

   Ultra-Handymax      2000         52,073   

Navios Soleil

   Ultra-Handymax      2009         57,337   

Navios La Paix

   Ultra-Handymax      2014         61,485   

Navios Gemini S

   Panamax      1994         68,636   

Navios Libra II

   Panamax      1995         70,136   

Navios Felicity

   Panamax      1997         73,867   

Navios Galaxy I

   Panamax      2001         74,195   

Navios Helios

   Panamax      2005         77,075   

Navios Hyperion

   Panamax      2004         75,707   

Navios Alegria

   Panamax      2004         76,466   

Navios Orbiter

   Panamax      2004         76,602   

Navios Hope

   Panamax      2005         75,397   

Navios Sagittarius

   Panamax      2006         75,756   

Navios Harmony

   Panamax      2006         82,790   

Navios Sun

   Panamax      2005         76,619   

Navios Fantastiks

   Capesize      2005         180,265   

Navios Aurora II

   Capesize      2009         169,031   

Navios Pollux

   Capesize      2009         180,727   

Navios Fulvia

   Capesize      2010         179,263   

Navios Melodia

   Capesize      2010         179,132   

Navios Luz

   Capesize      2010         179,144   

Navios Buena Ventura

   Capesize      2010         179,259   

Navios Joy

   Capesize      2013         181,389   
Chartered-in Vessels         

Navios Prosperity

   Panamax      2007         82,535   

Navios Aldebaran

   Panamax      2008         76,500   

 

Container Vessels

  

Type

   Built      TEU  

Hyundai Hongkong

   Container      2006         6,800   

Hyundai Singapore

   Container      2006         6,800   

Hyundai Tokyo

   Container      2006         6,800   

Hyundai Shanghai

   Container      2006         6,800   

Hyundai Busan

   Container      2006         6,800   

 

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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.

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
December 31,
2013
($ ‘000)
(unaudited)
    Three Month
Period Ended
December 31,
2012
($ ‘000)
(unaudited)
    Year Ended
December 31,
2013
($ ‘000)
(unaudited)
    Year Ended
December 31,
2012
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 12,936      $ 63,624      $ 104,842      $ 179,081   

Net decrease/(increase) in operating assets

     2,078        (623 )     9,403        1,565   

Net increase/(decrease) in operating liabilities

     15,071        (3,849 )     26,301        (12,314 )

Net interest cost

     6,230        2,466        16,860        9,898   

Amortization and write-off of deferred financing costs

     (686     (367 )     (4,035     (787 )
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

   $ 35,629      $ 61,251      $ 153,371      $ 177,443   

Cash interest income

     24        66        49        262   

Cash interest paid

     (5,417     (2,225 )     (13,324     (9,957 )

Maintenance and replacement capital expenditures

     (4,143     (4,942 )     (14,593     (18,869 )
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Surplus

   $ 26,093      $ 54,150      $ 125,503      $ 148,879   

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

                   (92,445     (82,050 )

Cash reserves

     6,480        (26,587     (485     (39,266 )
  

 

 

   

 

 

   

 

 

   

 

 

 

Available cash for distribution

   $ 32,573      $ 27,563      $ 32,573      $ 27,563   
  

 

 

   

 

 

   

 

 

   

 

 

 

(1)

      
     Three Month
Period Ended
December 31,
2013
($‘000)
(unaudited)
    Three Month
Period Ended
December 31,
2012
($‘000)
(unaudited)
    Year Ended
December 31,
2013
($‘000)
(unaudited)
    Year Ended
December 31,
2012
($‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 12,936      $ 63,624      $ 104,842      $ 179,081   

Net cash used in investing activities

   $ (275,086   $      $ (382,673   $ (109,698 )

Net cash provided by/(used in) financing activities

   $ 151,672      $ (55,157 )   $ 281,045      $ (85,329 )

 

12