Navios Maritime Containers L.P. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2020
Revenue
$95.4 million for 9M 2020$26.4 million for Q3 2020
Cash provided by operating activities
$2.6 million for 9M 2020$7.1 million for Q3 2020
EBITDA
$30.7 million for 9M 2020$5.8 million for Q3 2020
Net income/(loss)
$1.8 million for 9M 2020$(1.1) million for Q3 2020
Time charter contracts
- Five containerships fixed at a net daily rate of above
$18,000 for over a year
Debt maturities
- No significant debt maturities until 2023
HIGHLIGHTS -- RECENT DEVELOPMENTS
Time charter contracts
In
Units repurchase program
As of
NASDAQ notification of compliance
On
Fleet Employment
Navios Containers owns a fleet of 29 vessels, totaling 142,821 TEU. The current average age of the fleet is 12.3 years (See Exhibit II). As of
Earnings Highlights
EBITDA is a non-
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA of Navios Containers and a reconciliation of such measure to the most comparable measures calculated under
Third Quarter 2020 and 2019 Results
The third quarter of 2020 and 2019 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
Three Month Period Ended |
Three Month Period Ended |
|||||
(in thousands of |
(unaudited) | (unaudited) | ||||
Revenue | $ | 26,381 | $ | 37,031 | ||
Net (Loss)/Income | $ | (1,070 | ) | $ | 4,071 | |
Net cash provided by operating activities | $ | 7,126 | $ | 14,988 | ||
EBITDA | $ | 5,791 | $ | 16,641 | ||
Net (Loss)/Earnings per common unit (basic and diluted) | $ | (0.03 | ) | $ | 0.12 |
Revenue for the three months ended
Net Loss for the three months ended
EBITDA for the three months ended
Nine Months Ended
The information for the nine month periods ended
Nine Month Period Ended |
Nine Month Period Ended |
||||
(in thousands of |
(unaudited) | (unaudited) | |||
Revenue | $ | 95,432 | $ | 102,541 | |
Net Income | $ | 1,820 | $ | 4,572 | |
Net cash provided by operating activities | $ | 2,621 | $ | 24,309 | |
EBITDA | $ | 30,657 | $ | 41,419 | |
Net Earnings per common unit (basic and diluted) | $ | 0.05 | $ | 0.13 |
Revenue for the nine months ended
Net Income for the nine months ended
EBITDA for the nine months ended
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of the Navios Containers' operations and its fleet performance for the three and nine months ended
Three Month | Three Month | Nine Month | Nine Month | ||||||||||||
Period Ended | Period Ended | Period Ended | Period Ended | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Available Days (1) | 2,668 | 2,646 | 7,905 | 7,685 | |||||||||||
Operating Days (2) | 2,658 | 2,632 | 7,883 | 7,658 | |||||||||||
Fleet Utilization (3) | 99.6 | % | 99.5 | % | 99.7 | % | 99.6 | % | |||||||
Vessels operating at period end | 29 | 29 | 29 | 29 | |||||||||||
TCE (4) | $ | 9,639 | $ | 13,453 | $ | 11,352 | $ | 12,768 |
(1) | Available days for the fleet are total calendar days the vessels were in Navios Containers' possession for the relevant period after subtracting off-hire days associated with scheduled repairs or repairs under guarantee, vessel upgrades, drydocking or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues. |
(2) | Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire. Operating days include ballast days between voyages. |
(3) | Fleet utilization is the percentage of time that Navios Containers' vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. |
(4) | TCE per day is defined as voyage and time charter revenues less voyage expenses during a relevant period divided by the number of available days during the period. |
Conference Call:
As previously announced, Navios Containers will host a conference call on
A supplemental slide presentation will be available on the Navios Containers website at www.navios-containers.com under the "Investors" section by
Conference Call details:
Call Date/Time:
Call Title: Navios Containers Q3 2020 Financial Results Conference Call
US Dial In: +1.866.703.4207
International Dial In: +1.636.692.6440
Conference ID: 827 9439
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: 827 9439
This call will be simultaneously Webcast. The Webcast will be available on the Navios Containers’ website, www.navios-containers.com under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.
About
Forward Looking Statements - Safe Harbor
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, including future contracted revenues and rates, EBITDA, future available days, future financial performance of the fleet, timing of vessel deliveries, vessel acquisitions, financing activities, and Navios Containers' growth strategy and measures to implement such strategy, including future vessel acquisitions and the ability to secure or refinance related financing, the further growth of our containership fleet, 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. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Containers at the time these statements were made. Although Navios Containers 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 risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Containers. 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, risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it; the favorable timing for acquisitions and chartering opportunities in the container shipping sector and Navios Containers’ ability to take advantage of such opportunities; the value of container shipping vessels; Navios Containers’ ability to identify container shipping vessels for acquisition at attractive prices, if at all, including the availability of distressed acquisition opportunities in the container shipping industry; Navios Containers’ ability to execute on a low-cost operating structure; Navios Containers’ ability to achieve a return on investment for and to pay cash distributions to our unitholders or make common unit repurchases from our unitholders; any advantages resulting from Navios Containers’ strategic focus on intermediate-size containerships; Navios Containers’ ability to leverage the scale, experience, reputation and relationships of the
Contact:
+1.212.906.8648
investors@navios-containers.com
EXHIBIT I | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Expressed in thousands of |
|||||||||||||||
Three Month Period Ended September 30, 2020 |
Three Month Period Ended September 30, 2019 |
Nine Month Period Ended September 30, 2020 |
Nine Month Period Ended September 30, 2019 |
||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Revenue | $ | 26,381 | $ | 37,031 | $ | 95,432 | $ | 102,541 | |||||||
Time charter and voyage expenses | (666 | ) | (1,431 | ) | (5,689 | ) | (4,413 | ) | |||||||
Direct vessel expenses | (1,322 | ) | (974 | ) | (3,994 | ) | (2,796 | ) | |||||||
Vessel operating expenses (management fees) | (17,381 | ) | (16,754 | ) | (51,765 | ) | (48,885 | ) | |||||||
General and administrative expenses | (2,481 | ) | (2,623 | ) | (7,576 | ) | (7,687 | ) | |||||||
Depreciation and amortization | (2,582 | ) | (7,229 | ) | (14,017 | ) | (21,402 | ) | |||||||
Interest expense and finance cost, net | (3,053 | ) | (4,367 | ) | (10,983 | ) | (12,851 | ) | |||||||
Other income, net | 34 | 418 | 412 | 65 | |||||||||||
Net (loss)/ income | $ | (1,070 | ) | $ | 4,071 | $ | 1,820 | $ | 4,572 | ||||||
Net (loss)/ earnings per unit, basic and diluted | $ | (0.03 | ) | $ | 0.12 | $ | 0.05 | $ | 0.13 | ||||||
Weighted average number of units, basic and diluted | 34,392,038 | 34,603,100 | 34,532,232 | 34,603,100 | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Expressed in thousands of |
|||||
2020 |
2019 |
||||
(unaudited) | (unaudited) | ||||
ASSETS | |||||
Cash and cash equivalents, including restricted cash | $ | 8,293 | $ | 18,109 | |
Vessels and deferred dry dock and special survey costs, net | 406,902 | 415,143 | |||
Other assets (including current and non-current) | 19,616 | 20,762 | |||
Intangible assets | — | 6,288 | |||
Total assets | $ | 434,811 | $ | 460,302 | |
LIABILITIES AND PARTNERS’ CAPITAL | |||||
Other current liabilities | $ | 4,568 | $ | 24,664 | |
Current portion of long term borrowings, net | 32,590 | 46,733 | |||
Long-term borrowings, net of current portion | 207,636 | 198,925 | |||
Total Partners’ capital | 190,017 | 189,980 | |||
Total liabilities and Partners’ capital | $ | 434,811 | $ | 460,302 | |
Disclosure of Non-GAAP Financial Measures
EBITDA is a “non-
EBITDA represents net income/(loss) attributable to Navios Containers’ common unitholders before interest and finance costs, before depreciation and amortization and before income taxes. Navios Containers uses EBITDA as a liquidity measure and reconciles EBITDA to net cash provided by/(used in) operating activities, the most comparable
EBITDA is presented to provide additional information with respect to the ability of Navios Containers to satisfy its respective obligations, including debt service, capital expenditures, working capital requirements and pay distributions. 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.
EBITDA has limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Containers’ results as reported under
Reconciliation of EBITDA to Cash from Operations | ||||||||||||
Three Month Period Ended (unaudited) |
Three Month Period Ended (unaudited) |
Nine Month Period Ended (unaudited) |
Nine Month Period Ended (unaudited) |
|||||||||
Expressed in thousands of |
||||||||||||
Net cash provided by operating activities | $ | 7,126 | $ | 14,988 | $ | 2,621 | $ | 24,309 | ||||
Net (decrease)/increase in operating assets | (5,106 | ) | (1,259 | ) | (1,703 | ) | 4,969 | |||||
Net decrease /(increase) in operating liabilities | 664 | (3,965 | ) | 16,191 | (5,249 | ) | ||||||
Net interest and finance cost | 3,053 | 4,367 | 10,983 | 12,851 | ||||||||
Amortization and write-off of deferred financing costs | (342 | ) | (424 | ) | (2,009 | ) | (1,569 | ) | ||||
Payments for dry dock and special survey costs | 396 | 2,934 | 4,574 | 6,108 | ||||||||
EBITDA | $ | 5,791 | $ | 16,641 | $ | 30,657 | $ | 41,419 |
Expressed in thousands of |
Three Month Period Ended (unaudited) |
Three Month Period Ended (unaudited) |
Nine Month Period Ended (unaudited) |
Nine Month Period Ended (unaudited) |
||||||||
Net cash provided by operating activities | $ | 7,126 | $ | 14,988 | $ | 2,621 | $ | 24,309 | ||||
Net cash used in investing activities | $ | (5 | ) | $ | (4,251 | ) | $ | (3,212 | ) | $ | (60,898 | ) |
Net cash (used in)/provided by financing activities | $ | (10,184 | ) | $ | (10,443 | ) | $ | (9,225 | ) | $ | 34,846 |
EXHIBIT II | ||||||
Owned Vessels | ||||||
TEU | Year Built |
|||||
Navios Summer (1) | 3,450 | 2006 | ||||
Navios Verano (1) | 3,450 | 2006 | ||||
Navios Spring (1) | 3,450 | 2007 | ||||
Navios Amaranth (1) | 4,250 | 2007 | ||||
Navios Indigo (1) | 4,250 | 2007 | ||||
Navios Vermilion (1) | 4,250 | 2007 | ||||
Navios Verde (1) | 4,250 | 2007 | ||||
Navios Amarillo (1) | 4,250 | 2007 | ||||
Navios Azure (1) | 4,250 | 2007 | ||||
Navios Domino (1) | 4,250 | 2008 | ||||
Navios Delight (1) | 4,250 | 2008 | ||||
Navios Dedication (1) | 4,250 | 2008 | ||||
Navios Devotion (1) | 4,250 | 2009 | ||||
Navios Destiny (1) | 4,250 | 2009 | ||||
Navios Lapis | 4,250 | 2009 | ||||
Navios Tempo | 4,250 | 2009 | ||||
Navios Dorado | 4,250 | 2010 | ||||
Navios Felicitas | 4,360 | 2010 | ||||
4,360 | 2010 | |||||
4,360 | 2010 | |||||
Navios Miami | 4,563 | 2009 | ||||
Navios Magnolia | 4,730 | 2008 | ||||
Navios Jasmine | 4,730 | 2008 | ||||
APL Denver | 4,730 | 2008 | ||||
Navios Nerine | 4,730 | 2008 | ||||
Navios Utmost (1) | 8,204 | 2006 | ||||
Navios Unite (1) | 8,204 | 2006 | ||||
Navios Unison (2) | 10,000 | 2010 | ||||
Navios Constellation (2) | 10,000 | 2011 |
(1) | The vessel is subject to a sale and leaseback transaction for a period of up to five years, at which time Navios Containers has an obligation to purchase the vessel. |
(2) | The vessel is subject to a sale and leaseback transaction for a period of up to seven years, at which time Navios Containers has an obligation to purchase the vessel. |
Source: Navios Maritime Containers L.P.