Navios Containers reports $4.1 million net income for 3Q 2019
Navios Maritime Containers L.P. (“Navios Containers” or the “Company”) (NASDAQ: NMCI), a growth vehicle dedicated to the container sector of the maritime industry, reported its financial results for the third quarter and nine months ended September 30, 2019.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, "I am pleased with the results for the third quarter of 2019. Navios Containers reported $37.0 million of revenue, $16.6 million of EBITDA and $4.1 million of net income. Navios Containers also reported earnings per unit of 12 cents."
Angeliki Frangou continued, "We believe that Navios Containers is well-positioned going into 2020. It enjoys materially improved charter rates, with current market rates having increased by almost 70% since the first quarter of 2019. Navios Containers also benefits from fixed operating costs and attractive financing."
In September 2019, Navios Containers agreed to extend the time charters of the Navios Unison, a 2010-built 10,000 TEU containership, and the Navios Constellation, a 2011-built 10,000 TEU containership, at $27,300 per day net until May 2024. Following such extension, an additional cumulative EBITDA of approximately $30.0 million is expected for both vessels.
Navios Containers owns a fleet of 29 vessels, totaling 142,821 TEU. The current average age of the fleet is 11.3 years (See Exhibit II). As of October 25, 2019, Navios Containers has chartered-out 87.7% and 27.7% of available days for the remainder of 2019 and for 2020, respectively (excluding index-linked charters), which are expected to generate $36.7 million and $57.4 million in revenue, respectively. The average expected daily contracted charter-out rate for the fleet is $15,690 and $19,549 for the remainder of 2019 and for 2020, respectively, and the total expected available days for the remainder of 2019 and for 2020, are 2,668 days and 10,614 days, respectively.
Revenue for the three months ended September 30, 2019 was $37.0 million, as compared to $38.1 million for the same period during 2018. The decrease of $1.1 million was mainly due to the decrease in time charter rates reflecting primarily the expiration of certain legacy time charter contracts, partially offset by the increase in the number of vessels operating during the three months ended September 30, 2019 and the resulting increase in the number of available days from 2,242 for the three months ended September 30, 2018, to 2,646 for the three months ended September 30, 2019. TCE per day declined from $16,518 for the three months ended September 30, 2018 to $13,453 for the same period during 2019, primarily as a result of the expiration of contracts between the two periods.
Net Income for the three months ended September 30, 2019 was $4.1 million compared to $5.4 million for the same period in 2018. The $1.3 million decrease in Net Income was mainly due to a: (i) $2.6 million decrease in EBITDA; (ii) $0.8 million increase in interest expense and finance cost, net related to the financing of new vessels; and (iii) $0.6 million increase in amortization of deferred drydock and special survey costs, in each case, relating to the increase in the size of the fleet. This overall decrease of $4.0 million was partially offset by a $2.7 million decrease in depreciation and amortization expenses, relating mainly to the lower amortization of intangible assets.
EBITDA for the three months ended September 30, 2019 decreased by $2.6 million to $16.6 million as compared to $19.2 million for the same period in 2018. The decrease in EBITDA was primarily due to a: (i) $2.3 million increase in management fees mainly due to the increase of the available days from 2,242 days for the three months ended September 30, 2018, to 2,646 days for the three months ended September 30, 2019; (ii) $1.1 million decrease in revenue; (iii) $0.7 million increase in general and administrative expenses mainly related to the growth in our fleet; (iv) $0.5 million decrease in other income, net; and (v) $0.4 million increase in time charter and voyage expenses. This overall decrease of $5.0 million was partially offset by a $2.4 million decrease in listing transaction related-expenses.
Revenue for the nine months ended September 30, 2019 was $102.5 million, as compared to $99.5 million for the same period during 2018. The increase of $3.0 million was mainly due to the increase in the number of vessels operating during the nine months ended September 30, 2019 and the resulting increase in the number of available days from 6,161 for the nine months ended September 30, 2018, to 7,685 for the nine months ended September 30, 2019, partially offset by the decrease in time charter rates reflecting primarily the expiration of certain legacy time charter contracts. TCE per day declined from $15,733 for the nine months ended September 30, 2018 to $12,768 for the same period during 2019, primarily as a result of the expiration of these contracts between the two periods.
Net Income for the nine months ended September 30, 2019 was $4.6 million compared to $12.9 million for the same period in 2018. The $8.3 million decrease in Net Income was mainly due to a: (i) $10.2 million decrease in EBITDA; (ii) $5.3 million increase in interest expense and finance cost, net related to the financing of new vessels; and (iii) $1.7 million increase in amortization of deferred drydock and special survey costs, in each case, relating to the increase in the size of the fleet. This overall resulting decrease of $17.2 million was partially offset by an $8.9 million decrease in depreciation and amortization expenses, relating mainly to the lower amortization of intangible assets.
EBITDA for the nine months ended September 30, 2019 decreased by $10.2 million to $41.4 million as compared to $51.6 million for the same period in 2018. The decrease in EBITDA was primarily due to a: (i) $10.3 million increase in management fees mainly due to the increase of the available days from 6,161 days for the nine months ended September 30, 2018, to 7,685 days for the nine months ended September 30, 2019; (ii) $ 2.6 million increase in general and administrative expenses mainly related to the growth in our fleet; (iii) $1.8 million increase in time charter and voyage expenses; (iv) $0.7 million decrease in other income, net; and (v) $0.2 million increase in other direct vessel expenses. This overall resulting decrease of $15.6 million was partially offset by a: (i) $3.0 million increase in revenue described above reflecting the growth in the number of vessels operating in the fleet during the period; and (ii) $2.4 million decrease in listing transaction related-expenses.
About Navios Maritime Containers L.P.
Navios Maritime Containers L.P. is a growth-oriented international owner and operator of containerships.