Navios Maritime Partners L.P., an owner and operator of dry cargo vessels, today reported its financial results for the first quarter ended March 31, 2012. Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "I am pleased with our results for the first quarter of 2012. For the quarter, operating surplus increased by about 12% and net income by about 2%. We recently declared a distribution of $.44 per unit for the quarter, representing an annual distribution of $1.76 and a current yield of 11.2%."
Ms. Frangou continued, "Although the market has been difficult in the past few years, we have been able to increase distributions and believe we will be able to continue increasing distributions by growing our fleet. In addition to drop downs and option exercises we have used in the past, we have vigilantly monitored opportunities in the dry bulk sales and purchase market. Asset values have recently begun to rationalize, and we believe there may be opportunities for Navios Partners in the current sales and purchase market."
RECENT DEVELOPMENTS
Cash Distribution
The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2012 of $0.44 per unit. The cash distribution is payable on May 14, 2012 to unitholders of record on May 10, 2012.
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 3.6 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 96.6% of its available days for 2012, 79.3% for 2013 and 44.7% for 2014, generating revenues of approximately $192.6 million, $159.1 million and $99.5 million, respectively. The average contractual daily charter-out rate for the fleet is $30,266, $30,551 and $33,875 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 European Union insurance company.
Three month periods ended March 31, 2012 and 2011
Time charter revenues for the three month period ended March 31, 2012 increased by $5.2 million or 12.1% to $48.0 million, as compared to $42.8 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. As a result of these vessel acquisitions, available days of the fleet increased to 1,576 days for the three month period ended March 31, 2012, as compared to 1,407 days for the three month period ended March 31, 2011. The increase in revenue was off-set by scheduled off-hires of two owned vessels due to drydocking which resulted in $1.6 million of lost hire. The time charter equivalent ("TCE") decreased to $29,978 for the three month period ended March 31, 2012, from $30,422 for the three month period ended March 31, 2011.
EBITDA increased by $4.4 million to $36.8 million for the three month period ended March 31, 2012, as compared to $32.4 million for the same period of 2011. The increase in EBITDA was due mainly to a $5.2 million increase in revenue following the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and a $0.7 million increase in other income. The above increase was partially off-set by a $1.2 million increase in management fees, a $0.1 million increase in general and administrative expenses and a $0.2 million increase in time charter expenses as a result of the increased number of vessels in Navios Partners' fleet.
The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2012 and 2011 was $4.5 million and $4.3 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, 2012 of $29.6 million, as compared to $26.5 million for the three month period ended March 31, 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 March 31, 2012 amounted to $16.9 million compared to $16.6 million for the three months ended March 31, 2011. The increase in net income by $0.3 million was due to a $4.4 million increase in EBITDA partially off-set by: (i) a $0.1 million decrease in interest income; (ii) a $0.8 million increase in interest expense and finance cost, net; and (iii) a $3.2 million increase in depreciation and amortization expense due to the acquisitions of the Navios Orbiter and the Navios Luz and the favorable lease terms recognized in relation to these acquisitions.
Source: Navios Maritime Partners L.P.