- $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
Navios Maritime Containers, a growth vehicle dedicated to the container sector of the maritime industry, today reported its financial results for the third quarter and nine months ended September 30, 2020.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “The pandemic continues to disrupt businesses all over the world. Given the volatile market environment, I am pleased with our results for the third quarter of 2020. During the third quarter, Navios Containers reported revenue of $26.4 million and EBITDA of $5.8 million.”
Angeliki Frangou continued, “Consumer demand in the first half of 2020 was hurt by the global economic shut down and quarantine measures. However, with the assistance of fiscal stimulus and other policy measures, consumer demand and container trade rebounded throughout the third quarter of 2020 and continues to show strength. This velocity in trade plus new purchasing patterns in the pandemic economy have been big drivers for the current rates, and we expect them to moderate in coming quarters.”
HIGHLIGHTS — RECENT DEVELOPMENTS
Time charter contracts
In October 2020, Navios Containers has entered into five time charter-out contracts with an average term of over a year at a net daily rate of (i) $18,121for two 4,000-5,000 TEU containerships and (ii) $18,022 for three 4,000-5,000 TEU containerships.
Units repurchase program
As of November 2, 2020, Navios Containers had repurchased 2,157,523 common units, at a total cost of approximately $1.8 million.
NASDAQ notification of compliance
On October 15, 2020 Navios Containers received a notice from The Nasdaq Stock Market (“Nasdaq”), that it is once again in compliance with the Nasdaq’s Listing Rules continued listing requirement of maintaining a minimum closing price of $1.00 per share.
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 November 2, 2020, Navios Containers has chartered-out 90.6% and 33.2% of its available days for the remaining three months of 2020 and for the full year 2021, respectively (including index-linked charters). Excluding index-linked charters, Navios Containers has chartered-out 89.5% and 31.5% of its available days for the remaining three months of 2020 and for the full year 2021, respectively, which are expected to generate $28.7 million and $63.7 million in revenue, respectively. The average expected daily contracted charter-out rate for the fleet is $12,024, net and $19,094, net for the remaining three months of 2020 and for the full year 2021, respectively (excluding index-linked charters), and the total expected available days for the remaining three months of 2020 and for the full year 2021, are 2,668 and 10,585 days, respectively.
Earnings Highlights
EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as a substitute for Navios Containers’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
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 U.S. GAAP.
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 September 30, 2020 |
Three Month Period Ended September 30, 2019 |
|||||
| (in thousands of U.S. dollars, except per unit data) | (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 September 30, 2020 was $26.4 million, as compared to $37.0 million for the same period during 2019. The decrease of $10.6 million was mainly due to a decrease in time charter rates partially offset by the increase in the number of available days from 2,646 for the three months ended September 30, 2019, to 2,668 for the three months ended September 30, 2020. Time charter equivalent, or TCE, per day decreased from $13,453 for the three months ended September 30, 2019 to $9,639 for the same period during 2020.
Net Loss for the three months ended September 30, 2020 was $1.1 million compared to $4.1 million Net Income for the same period in 2019. The $5.2 million decrease in Net Income was mainly due to a $10.8 million decrease in EBITDA and a $0.2 million increase in amortization of deferred drydock and special survey costs. This overall increase of $11.0 million was partially offset by a: (i) $4.6 million decrease in depreciation and amortization, relating mainly to the lower amortization of intangible assets; and (ii) $1.2 million decrease in interest expense and finance cost, net.
EBITDA for the three months ended September 30, 2020 decreased by $10.8 million to $5.8 million as compared to $16.6 million for the same period in 2019. The decrease in EBITDA was primarily due to a: (i) $10.6 million decrease in revenue; (ii) $0.6 million increase in vessel operating expenses mainly due to the increase in the number of available days and the vessel operating expenses as per the management agreement; and (iii) $0.4 million decrease in other income, net. This overall decrease of $11.6 million was partially offset by a: (i) $0.7 million decrease in time charter and voyage expenses; and (ii) $0.1 million decrease in general and administrative expenses.
Nine Months Ended September 30, 2020 and 2019 Results
The information for the nine month periods ended September 30, 2020 and 2019 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Nine Month Period Ended September 30, 2020 |
Nine Month Period Ended September 30, 2019 |
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| (in thousands of U.S. dollars, except per unit data) | (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 September 30, 2020 was $95.4 million, as compared to $102.5 million for the same period during 2019. The decrease of $7.1 million was mainly due to a decrease in time charter rates partially offset by the increase in the number of available days from 7,685 for the nine months ended September 30, 2019, to 7,905 for the nine months ended September 30, 2020. TCE per day decreased from $12,768 for the nine months ended September 30, 2019 to $11,352 for the same period during 2020.
Net Income for the nine months ended September 30, 2020 was $1.8 million compared to $4.6 million for the same period in 2019. The $2.8 milliondecrease in Net Income was mainly due to a: (i) $10.7 million decrease in EBITDA; and (ii) $1.2 million increase in amortization of deferred drydock and special survey costs. This overall decrease of $11.9 million was partially offset by a: (i) $7.4 million decrease in depreciation and amortization relating mainly to the lower amortization of intangible assets; and (ii) $1.7 million decrease in interest expense and finance cost, net.
EBITDA for the nine months ended September 30, 2020 decreased by $10.7 million to $30.7 million as compared to $41.4 million for the same period in 2019. The decrease in EBITDA was primarily due to a: (i) $7.1 million decrease in revenue; (ii) $2.9 million increase in vessel operating expenses mainly due to the increase in the number of available days and the vessel operating expenses as per the management agreement; and (iii) $1.3 million increase in time charter and voyage expenses. This overall decrease of $11.3 million was partially offset by a: (i) $0.3 million increase in other income, net; (ii) $0.2 million decrease in general and administrative expenses; and (iii) $0.1 million decrease in other direct vessel expenses.
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 September 30, 2020 and 2019.
| Three Month | Three Month | Nine Month | Nine Month | ||||||||||||
| Period Ended | Period Ended | Period Ended | Period Ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 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. |
