Navios Maritime CEO Discusses Q3 2010 Results – Earnings Call Transcript
Navios Maritime Holdings, Inc. (
)
Q3 2010 Earnings Call Transcript
October 27, 2010 8:30 am ET
Executives
Nicolas Bornozis – IR, Capital Link Inc.
Angeliki Frangou – Chairman and CEO
– CFO
George Achniotis – EVP, Business Development
Analysts
John Chappell – JP Morgan
Natasha Boyden – Cantor Fitzgerald
Michael Webber – Wells Fargo
Urs Dür – Lazard Capital
Seth Glickenhaus – Glickenhaus & Company
Presentation
Operator
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Navios Maritime Holdings Inc. Q3 2009 Earnings Call Transcript
Thank you for standing by, ladies and gentlemen. And welcome to Navios Maritime Partners conference call on their third quarter and nine months 2010 financial results. We have with us Ms. Angeliki Frangou, Chairman and CEO; Mr.
, Chief Financial Officer; and, Mr. George Achniotis, Executive Vice President for Business Development of the company.
At this time, all participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session. (Operator Instructions) I must advise you that this conference is being recorded today on Wednesday, October the 27th for year 2010. We now pass the floor to Mr. Nicolas Bornozis, President of Capital Link, Investor Relations Advisor to Navios Maritime Partners. Please go ahead, sir.
Nicolas Bornozis
Thank you, and good morning to all of our participants. This is Nicolas Bornozis of Capital Link, Investor Relations Advisor to Navios Maritime Partners LP.
The company released financial results for the third quarter and nine-month period ended September 30, 2010. The press release has been distributed publicly and is also available on the company's Web site under the Investor Relations section at www.navios-mlp.com. On the Web site, in the same section and also under Events, you can access and download the slides used in today's conference call and webcast, and you can also access the webcast itself. You're also welcome to call us at 212-661-7566 or email us at naviospartners@capitallink.com and we will send you the press release and the slides.
Today, in addition to the conference call, there is also a live audio and slides webcast, which can be accessed, as I mentioned, through the company's Web site at www.navios-mlp.com. The webcast will also be available as an archive after the conference call. Please note that the slides are user-controlled. So by clicking on the proper button, you can move to the next or to the previous slide on your own.
Before we proceed with the presentation, I have to take you through the forward-looking statement disclaimer as displayed on slide number two of the presentation. Please note that statements in this presentation and webcast, which are not statements of historical fact, are forward-looking statements. These forward-looking statements are based on information available to and the expectations and assumptions being reasonable to the company at the time this presentation was made. Although the company believes that the assumptions underlying such statements are reasonable, we can give no assurance that they will be attained.
The company undertakes no obligation to update any forward-looking statements, whether as a result of new information or future events unless it's required to do so under the Securities laws. The company makes no prediction or statement about the performance of its common units. A full description of the forward-looking statement disclaimer can be found in the press release and also on slide number two of the presentation. And please be kind enough to take a minute and read through it.
Now, I will turn over the floor to Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Maritime Partners. Please go ahead, Angeliki. Thank you.
Angeliki Frangou
Thank you, Nicolas, and good morning to all of you who's joining us on today's call. I am very pleased with our operating results for the third quarter of 2010. During the quarter, we increased our operating surplus by almost 81%, EBITDA by about 73%, and net income by about 51%.
Our consistent performance has enabled us access to the capital markets. Consequently, we have enjoyed the ability to grow our fleet and profitability. As you can see on slide three, a couple of weeks ago, Navios Partners made approximately $115 million through the sale of a partnership unit. We aim to use these funds to increase cash flow while also engaging our average remaining charter period of 4.3 years and lowering our average fleet age of 6 years.
As an MLP, our focus is growing cash flow by acquiring quality vessels and franchising these vessels and ensuring the charter. Our goal is a creation of doable distribution for our investors. We can also do this by entering into charters with appropriate durations dependent upon our assessment of the market type.
We are pleased to announce that we have chartered out the Navios Libra for two years at an attractive net day rate of $18,525 per day. With this charter, we have eliminated fleet re-chartering risks until the second half of 2012.
As you can see on slide four, since Navios Maritime's IPO in the late 2007, we have increased distribution by more than 20% and our fleet by over 112%. We have been able to do this because of our multiple avenues of growth. We think that we can continue to enjoy the benefit of the Navios Group's global deal flow as we exist to grow our company.
At this point, I would like to turn the call over to Mr. Efstratios Desypris, Navios' partner and Chief Financial Officer, who will take you through the results of the quarter. Efstratios?
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