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Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: “I am pleased with the results for the third quarter of 2012. Our larger fleet allowed us to increase EBITDA by almost 20% and net income by 33%. We have 21 vessels with an average charter duration of 3.3 years and recently announced a quarterly distribution of $0.4425 per unit with a record date of November 8, 2012. Our annual distribution of $1.77 represents a yield of approximately 11.6%.” Ms. Frangou continued, “We seek to increase distributions, regardless of the underlying market conditions. We have done so through various drop downs and, more recently, we have begun investing through the S&P market. We will continue to do so as opportunities warrant.” RECENT DEVELOPMENTS Cash Distribution The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2012 of $0.4425 per unit. The cash distribution is payable on November 13, 2012 to unitholders of record on November 8, 2012. Vessel Acquisitions On July 24, 2012, Navios Partners acquired from an unrelated third party the Navios Soleil, a 57,337 dwt Ultra-Handymax vessel built in 2009, for a cash purchase price of $20.7 million. On July 27, 2012, Navios Partners acquired from an unrelated third party the Navios Helios, a 77,075 dwt Panamax vessel built in 2005, for a cash purchase price of $20.8 million. Credit Facilities On August 8, 2012, Navios Partners entered into a new credit facility (the “August Facility”) with DVB Bank SE and ABN AMRO Bank N.V, in order to borrow $44.0 million to partially finance the acquisitions of the Navios Buena Ventura, the Navios Soleil and the Navios Helios. The August Facility matures on February 9, 2018and is repayable in 22 equal quarterly installments of $0.9 million each with a final balloon payment of $23.7 million to be repaid on the last repayment date. It bears interest at a rate of LIBOR plus 350 bps. The August Facility also requires compliance with certain financial covenants. On July 31, 2012, Navios Partners entered into a facility agreement (the “Loan Agreement”) with DVB Bank SE and Commerzbank AG for $290.45 million in order to refinance Navios Partners’ two existing facilities consisting of the $260.0 million credit facility, dated November 15, 2007, as amended, and the $35.0 million credit facility dated May 27, 2011. The Loan Agreement matures on November 30, 2017 and is repayable (if the full amount is drawn) in 21 installments in various amounts during the term of the Loan Agreement consisting of $0.6 million (two quarterly installments), $7.9 million (17 quarterly installments) and $12.9 million (two quarterly installments) with a final payment of $128.6 million. It bears interest at a margin ranging from 180 to 205 bps per annum (depending on the loan amount compared to the security value). The Loan Agreement also requires compliance with certain financial covenants. 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 3.3 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 99.3% of its available days for 2012, 83.0% for 2013 and 47.8% for 2014, generating revenues of approximately $202.7 million, $178.0 million and $114.4 million, respectively. The average contractual daily charter-out rate for the fleet is $28,734, $27,987 and $31,219 for 2012, 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels is $13,513 for 2012. Navios Partners has insured its charter-out contracts for credit default through a “AA” rated insurance company in the European Union. FINANCIAL HIGHLIGHTS For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of income for the three and nine month periods ended September 30, 2012 and 2011. The quarterly 2012 and 2011 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results. 
Three month periods ended September 30, 2012 and 2011 Time charter revenues for the three month period ended September 30, 2012 increased by $7.5 million or 15.6% to $55.5 million, as compared to $48.0 million for the same period in 2011. 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 these vessel acquisitions, available days of the fleet increased to 1,882 days for the three month period ended September 30, 2012, as compared to 1,656 days for the three month period ended September 30, 2011. The time charter equivalent (“TCE”) increased to $29,341 for the three month period ended September 30, 2012, from $28,992 for the three month period ended September 30, 2011. EBITDA increased by $7.0 million to $43.0 million for the three month period ended September 30, 2012, as compared to $36.0 million for the same period of 2011. The increase in EBITDA was due mainly to a $7.5 million increase in revenue following 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, a $0.7 million decrease in time charter expenses and a $0.3 million increase in other income/(expense), net. The above increase was partially offset by a $1.4 million increase in management fees and a $0.1 million increase in general and administrative expenses. The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended September 30, 2012 and 2011 was $4.9 million and $4.8 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 September 30, 2012 of $35.6 million, as compared to $29.3 million for the three month period ended September 30, 2011. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3). Net income for the three months ended September 30, 2012 amounted to $22.1 million compared to $16.6 million for the three months ended September 30, 2011. The increase in net income by $5.5 million was due to a $7.0 million increase in EBITDA partially offset by: (i) a $1.3 million increase in depreciation and amortization expense due to the acquisition of the Navios Buena Ventura, and the favorable lease terms recognized in relation to this acquisition and the acquisition of the Navios Soleil and the Navios Helios; and (ii) a $0.1 million decrease in interest income. Nine month periods ended September 30, 2012 and 2011 Time charter revenues for the nine month period ended September 30, 2012 increased by $16.1 million or 11.8% to $152.6 million, as compared to $136.5 million for the same period in 2011. The increase was mainly attributable to the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011, 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 these vessel acquisitions, available days of the fleet increased to 5,088 days for the nine month period ended September 30, 2012, as compared to 4,604 days for the nine month period ended September 30, 2011. TCE increased to $29,513 for the nine month period ended September 30, 2012, from $29,646 for the nine month period ended September 30, 2011. EBITDA increased by $17.0 million to $116.2 million for the nine month period ended September 30, 2012, as compared to $99.2 million for the same period of 2011. The increase in EBITDA was mainly due to: (i) a $16.1 million increase in revenue following the acquisitions of the five vessels at various times until July 2012 the Navios Luz, the Navios Orbiter, the Navios Buena Ventura, the Navios Soleil and the Navios Helios; (ii) a $4.0 million of non-cash charge for the write-off of intangible asset associated with the Navios Apollon charter out contract incurred in the nine month period ended September 30, 2011; and (iii) a $0.8 million increase in other income/ (expense), net. The above increase was partially offset by a $3.4 million increase in management fees, a $0.3 million increase in general and administrative expenses and a $0.2 million increase in time charter expenses. The reserve for estimated maintenance and replacement capital expenditures for the nine month periods ended September 30, 2012 and 2011 was $13.9 million and $13.7 million, respectively (please see Reconciliation of Non- GAAP Financial Measures in Exhibit 3). Navios Partners generated an Operating Surplus for the nine month period ended September 30, 2012 of $94.7 million, as compared to $84.5 million for the nine month period ended September 30, 2011. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3). Net income for the nine months ended September 30, 2012 amounted to $55.8 million compared to $46.7 million for the nine months ended September 30, 2011. The increase in net income by $9.1 million was due to a $17.0 million increase in EBITDA partially offset by: (i) a $6.1 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter, the Navios Luz and the Buena Ventura and the favorable lease terms recognized in relation to these acquisitions and the acquisitions of the Navios Soleil and the Navios Helios; (ii) a $1.2 million increase in interest expense and finance cost, net; and (iii) a $0.6 million decrease in interest income. 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 Navios Maritime Partners L.P. press release |
