Navios Maritime Partners L.P. Reports Financial Results for the First Quarter Ended March 31, 2014

Navios Maritime Partners L.P. Reports Financial Results for the First Quarter 
Ended March 31, 2014 
MONACO -- (Marketwired) -- 04/29/14 --  Navios Maritime Partners L.P.
(NYSE: NMM) 


 
--  14.4% increase in quarterly Revenue to $57.5 million
    
    
--  86.3% increase in quarterly EBITDA to $69.0 million
    
    
--  82.1% increase in quarterly Operating Surplus to $56.8 million
    
    
--  $50.0 million cash from termination of third party credit default
    insurance
    
    
--  Dividend of $0.4425 per common unit for Q1

  
Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an
international owner and operator of drybulk and container vessels,
today reported its financial results for the first quarter ended
March 31, 2014.  
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Partners, stated: "I am pleased with our results for this quarter, in
which we achieved EBITDA of $69.0 million and net income of $18.4
million. Our quarterly distribution of $0.4425, represents an annual
distribution of $1.77 per unit and a current yield of 9.4%. Navios
Partners is committed to this distribution through 2015." 
RECENT DEVELOPMENTS  
Cash Distribution  
The Board of Directors of Navios Partners declared a cash
distribution for the first quarter of 2014 of $0.4425 per unit. The
cash distribution is payable on May 13, 2014 to unitholders of record
on May 9, 2014.  
Insurance Settlement
 In March 2014, Navios Partners entered into an
agreement to terminate its credit default insurance with its third
party insurer. As a result of the agreement, Navios Partners will
receive:  


 
--  $50.0 million in cash, as follows:
    --  $31.0 million lump sum compensation from its third party insurer,
        already received in April 2014; and
    --  $19.0 million from the sale of a defaulted counterparty claim.

  
In addition, Navios Partners expects to gain: 


 
--  $9.6 million NPV benefit from the upfront lump sum payment; and
--  $45.1 million maximum benefit by eliminating market mitigation
    obligation.

  
Navios Partners continues to insure certain long-term charter-out
contracts of drybulk vessels for credit default occurring until the
end of 2016, through an agreement with Navios Maritime Holdings Inc.
up to a maximum cash payment of $20.0 million. 
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 3.2 years, providing a stable base of
revenue and distributable cash flow. Navios Partners has currently
contracted out 85.1% of its available days for 2014, 51.8% for 2015
and 38.2% for 2016, expecting to generate revenues of approximately
$205.2 million, $153.5 million and $123.2 million, respectively. The
average expected daily charter-out rate for the fleet is $22,063 for
2014, $27,065 for 2015 and $29,401 for 2016. The average daily
charter-in rate for the charter-in vessels is $13,619 for 2014.  
Following the termination of the credit default insurance through its
third party insurer, Navios Partners continues to insure certain
long-term charter-out contracts of drybulk vessels for credit default
occurring until the end of 2016, through an 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 month periods ended
March 31, 2014 and 2013. The quarterly 2014 and 2013 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      Three Month  
                                             Period Ended     Period Ended  
(in $'000 except per                        March 31, 2014    March 31,2013 
unit data)                                    (unaudited)      (unaudited)  
                                           ---------------- ----------------
Revenue                                    $         57,498 $         50,281
Net income                                 $     18,361 (1) $         16,246
EBITDA                                     $     69,015 (2) $         37,054
Earnings per Common unit (basic and                                         
 diluted)                                  $           0.24 $           0.24
Operating Surplus                          $     56,847 (2) $         31,215
Maintenance and Replacement Capital                                         
 expenditure reserve                       $          5,908 $          3,467

 
(1) Positively affected by the accounting effect of the $29.8 million
insurance settlement and negatively affected by the $22.0 million
non-cash accelerated amortization of the intangible asset relating to
one Capesize vessel. 
 (2) Positively affected by the accounting
effect of the $29.8 million insurance settlement.  
Three month periods ended March 31, 2014 and 2013
 Time charter and
voyage revenues for the three month period ended March 31, 2014
increased by $7.2 million or 14.4% to $57.5 million, as compared to
$50.3 million for the same period in 2013. The increase was mainly
attributable to the acquisitions of the Navios Joy on September 11,
2013, the Navios Harmony on October 11, 2013, the five container
vessels in December 2013, the Navios La Paix and the Navios Sun in
January 2014. As a result of the vessel acquisitions, available days
of the fleet increased to 2,668 days for the three month period ended
March 31, 2014, as compared to 1,890 days for the three month period
ended March 31, 2013. The above increase in time charter and voyage
revenues was partially mitigated by the decrease in time charter
equivalent ("TCE") to $20,785 for the three month period ended March
31, 2014, from $26,244 for the three month period ended March 31,
2013. 
EBITDA increased by $31.9 million to $69.0 million for the three
month period ended March 31, 2014, as compared to $37.1 million for
the same period in 2013. The increase in EBITDA was due to a $7.2
million increase in revenue and a $30.0 million increase in other
income. The above increase was partially mitigated by a $3.5 million
increase in management fees due to the increased number of vessels, a
$1.3 million increase in time charter and voyage expenses, a $0.3
million increase in general and administrative expenses and a $0.1
million increase in other expense. 
The reserve for estimated maintenance and replacement capital
expenditures for the three month periods ended March 31, 2014 and
2013 was $5.9 million and $3.5 million, respectively (please see
Reconciliation of Non-GAAP Financial Measures in Exhibit 3).  
Navios Partners generated operating surplus for the three month
period ended March 31, 2014 of $56.8 million, compared to $31.2
million for the three month period ended March 31, 2013. 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, 2014 amounted to
$18.4 million compared to $16.2 million for the three months ended
March 31, 2013. The increase in net income by $2.1 million was due to
a $31.9 million increase in EBITDA partially mitigated by a $25.3
million increase in depreciation and amortization expense mainly due
to the increased fleet size and the accelerated amortization of the
Navios Pollux favorable lease intangible and a $4.6 million increase
in interest expense and finance cost, net.  
Fleet Employment Profile 
The following table reflects certain key indicators of Navios
Partners' core fleet performance for the three month periods ended
March 31, 2014 and 2013. 


 
                                                                            
                                                                            
                                            Three Month       Three Month   
                                           Period Ended      Period Ended   
                                          March 31, 2014    March 31, 2013  
                                            (unaudited)       (unaudited)   
                                         ----------------  ---------------- 
                                                                            
Available Days (1)                                  2,668             1,890 
Operating Days (2)                                  2,665             1,886 
Fleet Utilization (3)                               99.88%            99.81%
Time Charter Equivalent (per day) (4)    $         20,785  $         26,244 
Vessels operating at period end                        30                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,
Tuesday, April 29, 2014 to discuss the results for the first quarter
ended March 31, 2014.  
Conference Call details:  
Call Date/Time: Tuesday, April 29, 2014 at 08:30 am ET
 Call Title:
Navios Partners Q1 2014 Financial Results Conference Call
 US Dial
In: +1.866.394.0817
 International Dial In: +1.706.679.9759  
Conference ID: 3412 1289 
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: 3412 1289 
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.  


 
                                                                            
                                                                   EXHIBIT 1
                                                                            
                        NAVIOS MARITIME PARTNERS L.P.                       
                    CONDENSED CONSOLIDATED BALANCE SHEET                    
          (Expressed in thousands of U.S. Dollars except unit data)         
                                                                            
                                                   March 31,                
                                                      2014      December 31,
                                                  (Unaudited)       2013    
                                                 ------------- -------------
ASSETS                                                                      
Current assets                                                              
Cash and cash equivalents                        $     140,559 $      35,346
Restricted cash                                          1,176         1,177
Accounts receivable, net                                11,852        16,298
Prepaid expenses and other current assets               33,374         1,663
                                                 ------------- -------------
Total current assets                                   186,961        54,484
                                                 ------------- -------------
                                                                            
Vessels, net                                         1,058,513     1,026,153
Deposits for vessels acquisitions                           --         7,271
Deferred financing costs, net                            7,964         8,463
Other long term assets                                     185            94
Investment in affiliates                                   500           500
Loans receivable from affiliates                           493           280
Intangible assets                                       88,021       119,405
Restricted cash                                             --        33,429
                                                 ------------- -------------
                                                                            
Total non-current assets                             1,155,676     1,195,595
                                                                            
                                                 ------------- -------------
Total assets                                     $   1,342,637 $   1,250,079
                                                 ============= =============
                                                                            
LIABILITIES AND PARTNERS' CAPITAL                                           
Current liabilities                                                         
Accounts payable                                 $       3,610 $       3,171
Accrued expenses                                         3,871         3,876
Deferred voyage revenue                                  2,766         2,997
Current portion of long-term debt                        5,361         5,358
Amounts due to related parties                           1,381           204
                                                 ------------- -------------
Total current liabilities                               16,989        15,606
                                                 ------------- -------------
                                                                            
Long-term debt, net of current portion and                                  
 discount                                              526,621       527,966
                                                 ------------- -------------
Total non-current liabilities                          526,621       527,966
                                                                            
                                                 ------------- -------------
Total liabilities                                      543,610       543,572
                                                 ------------- -------------
                                                                            
Commitments and contingencies                               --            --
Partners' capital:                                                          
Common Unitholders (77,359,163 and 71,034,163                               
 units issued and outstanding at March 31, 2014                             
 and December 31, 2013, respectively)                  793,006       702,478
General Partner (1,578,763 and 1,449,681 units                              
 issued and outstanding at March 31, 2014 and                               
 December 31, 2013, respectively)                        6,021         4,029
                                                 ------------- -------------
Total partners' capital                                799,027       706,507
                                                                            
                                                 ------------- -------------
                                                                            
Total liabilities and partners' capital          $   1,342,637 $   1,250,079
                                                 ============= =============
                                                                            
                                                                            
                                                                            
                        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    Three Month  
                                                Period ended   Period ended 
                                                  March 31,      March 31,  
                                                    2014           2013     
                                                 (unaudited)    (unaudited) 
                                               -------------  ------------- 
Time charter and voyage revenues (includes                                  
 related party revenue of $6,127 and $3,237                                 
 for the three months ended March 31, 2014 and                              
 2013, respectively)                           $      57,498  $      50,281 
Time charter and voyage expenses                      (4,443)        (3,112)
Management fees (entirely through related                                   
 parties transactions)                               (12,005)        (8,491)
General and administrative expenses                   (1,944)        (1,609)
Depreciation and amortization                        (43,678)       (18,411)
Interest expense and finance cost, net                (7,029)        (2,405)
Interest income                                           53              8 
Other income                                          30,040             44 
Other expense                                           (131)           (59)
                                               =============  ============= 
Net income                                     $      18,361  $      16,246 
                                               =============  ============= 

 
Earnings per unit: 


 
                                                                            
                                                 Three Month    Three Month 
                                                 Period ended   Period ended
                                                  March 31,      March 31,  
                                                     2014           2013    
                                                 (unaudited)    (unaudited) 
                                               -------------- --------------
Net income                                     $       18,361 $       16,246
Earnings per unit:                                                          
Common unit (basic and diluted)                $         0.24 $         0.24
                                                                            
                                                                            
                                                                            
                        NAVIOS MARITIME PARTNERS L.P.                       
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS              
                   (Expressed in thousands of U.S. Dollars)                 
                                                                            
                                                Three Month    Three Month  
                                                Period ended   Period ended 
                                                  March 31,      March 31,  
                                                    2014           2013     
                                                 (unaudited)    (unaudited) 
                                               -------------  ------------- 
OPERATING ACTIVITIES                                                        
Net income                                     $      18,361  $      16,246 
Adjustments to reconcile net income to net                                  
 cash provided by operating activities:                                     
Depreciation and amortization                         43,678         18,411 
Amortization and write-off of deferred                                      
 financing cost                                          750            536 
Changes in operating assets and liabilities:                                
Net decrease/(increase) in restricted cash                 1             (1)
Decrease/(increase) in accounts receivable             4,446         (1,240)
(Increase)/decrease in prepaid expenses and                                 
 other current assets                                (31,711)            10 
(Increase)/decrease in other long term assets            (91)           224 
Increase in accounts payable                             439            279 
Decrease in accrued expenses                              (6)        (1,128)
Decrease in deferred voyage revenue                     (231)        (3,873)
Increase/(decrease) in amounts due to related                               
 parties                                                 648            (71)
                                               -------------  ------------- 
Net cash provided by operating activities             36,284         29,393 
                                               -------------  ------------- 
                                                                            
INVESTING ACTIVITIES:                                                       
Acquisition of vessels                               (36,854)            -- 
Loans receivable from affiliates                        (213)            -- 
Release of restricted cash for vessel                                       
 acquisitions                                         33,429             -- 
                                               -------------  ------------- 
Net cash used in investing activities                 (3,638)            -- 
                                               -------------  ------------- 
                                                                            
FINANCING ACTIVITIES:                                                       
Cash distributions paid                              (32,573)       (29,936)
Net proceeds from issuance of general partner                               
 units                                                 2,233          1,494 
Proceeds from issuance of common units, net of                              
 offering costs                                      104,499         69,770 
Net decrease in restricted cash                           --         28,263 
Repayment of long-term debt and payment of                                  
 principal                                            (1,592)       (57,224)
                                               -------------  ------------- 
Net cash provided by financing activities             72,567         12,367 
                                               -------------  ------------- 
Increase in cash and cash equivalents                105,213         41,760 
                                               =============  ============= 
Cash and cash equivalents, beginning of period        35,346         32,132 
                                               -------------  ------------- 
Cash and cash equivalents, end of period       $     140,559  $      73,892 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                                                                   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 Hyperion               Panamax         2004          75,707    
Navios Alegria                Panamax         2004          76,466    
Navios Orbiter                Panamax         2004          76,602    
Navios Helios                 Panamax         2005          77,075    
Navios Hope                   Panamax         2005          75,397    
Navios Sun                    Panamax         2005          76,619    
Navios Sagittarius            Panamax         2006          75,756    
Navios Harmony                Panamax         2006          82,790    
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     
                                                                      
                                                                   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. 
4. Reconciliation of Non-GAAP Financial Measures 


 
                                                                            
                                                Three Month    Three Month  
                                                Period ended   Period ended 
                                                  March 31,      March 31,  
                                                    2014           2013     
                                                   ($'000)        ($'000)   
                                                 (unaudited)    (unaudited) 
                                               -------------  ------------- 
Net cash provided by operating activities      $      36,284  $      29,393 
Net decrease in operating assets                      27,355          1,007 
Net (decrease)/increase in operating                                        
 liabilities                                            (850)         4,793 
Net interest cost                                      6,976          2,397 
Amortization and write-off of deferred                                      
 financing cost                                         (750)          (536)
                                               =============  ============= 
EBITDA(1)                                      $      69,015  $      37,054 
Cash interest income                                      27              9 
Cash interest paid                                    (6,287)        (2,381)
Maintenance and replacement capital                                         
 expenditures                                         (5,908)        (3,467)
                                               =============  ============= 
Operating Surplus                              $      56,847  $      31,215 
Cash reserves                                        (21,373)        (1,279)
                                               =============  ============= 
Available cash for distribution                $      35,474  $      29,936 
                                                                            
                                                                            
                                                                            
 (1)                                                                      
                                                                          
                                              Three Month     Three Month 
                                              Period ended    Period ended
                                                March 31,      March 31,  
                                                  2014            2013    
                                                ($ '000)        ($ '000)  
                                               (unaudited)    (unaudited) 
                                             -------------  --------------
 Net cash provided by operating activities   $      36,284  $       29,393
 Net cash used in investing activities       $      (3,638) $           --
 Net cash provided by financing activities   $      72,567  $       12,367

  
Contacts
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com 
Nicolas Bornozis
Capital Link, Inc.
naviospartners@capitallink.com 
 
 
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