NMCI - Earnings call transcript Q3 2020 | Navios Maritime Containers L.P.

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Operator

Thank you for joining us for Navios Maritime Containers L.P.

Third Quarter 2020 Earnings Conference Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; Vice Chairman, Mr. Ted Petrone; and Chief Financial Officer, Mrs. Tsironi. Erifili

this go being of to website, reminder, the To Navios call www.navios-containers.com. please webcast, the conference a webcast. is access Containers As Investors section

and the the today's in call found of link see be conference of in also You’ll the presentation webcast earnings page there. a will reference copy the middle

forward-looking Litigation will meaning of the review statement. Reform Now Navios within of Safe I about This conference Private Securities statements Harbor the call Act XXXX will contain the Containers.

that Containers' statements any with The statements which are subject statements this contained risks not update the historical in is beliefs differ light looking looking in and Exchange Forward and Navios of could are today's conference forward forth Such are results should Such Containers in as Navios to obligation The are conference management assume risks. from are call follows. call. current Securities more filings uncertainties facts. does be Commission. herein actual the not to to of understood risks and upon the agenda fully based cause set statements. for Navios forward information information and expectations discussed Containers' the looking such

Mr. Frangou overview. Petrone First, remarks. and give opening will update Ms. an operational offer will Then industry

financial Next open Containers' Tsironi take Mrs. will we review results. will questions. lastly, And Navios the call to

Containers' CEO, Ms. and to Angeliki Chairman Now Navios I over the turn Angeliki? call Frangou.

Angeliki Frangou

who of to Doris. world. us you, disrupt the Thank over you today's join all call. good all to pandemic businesses morning on That continues And

XXXX. volatile the results I'm quarter Given of for market with the environment, the pleased third

in first shaped $X.X million Navios of half million. of quarter, global revenue Consumer shut by third and economic the $XX.X the was downs and lock an During reported XXXX EBITDA of the downs. demand Containers

for policy demand XXX% this show continues the measures on since We in with system refusal the container highlights all the purchasing XXXX. focus have two current perspective, in rebounded Navios to are per We throughout supply from attractive and hope current and the highest and NMCI demand allow and company strength right New pandemic provides exit as their that us for containership Containers and policy charter day Baby $XX,XXX that things improve the utilization first vehicle. Navios about maintains patterns Panamaxes balance to of fiscal containerships TEU, and X,XXX and the which improvement to Slide rates a QX trade consumer from attributable of are to by market most economy. is opportunity. and our QX. now Group's segments they However, new stimulus, believe sustainable, their We the X increased as

container leverage strategy debt Slide maturities sheet. shutdown. half Obviously, and the conservative continue our first Additionally, to demonstrates economies rate. no drive balance XXXX volumes pandemic for weak strengthens how GDP XXXX of X globe was significant the until with our given

outlook However, next mainly growth global economic The for grow China, XXXX GDP by IMF year. the with expected of is X.X% led GDP expects X.X% an by to positive.

our XXXX. debt alone, strong debt the maturities over XXXX our of than with months nine leverage. a maintain have highest their X by About of to million XXXX. it sheet we During EBITDA more we X$ our has years. no down velocity trade for developments covered by and and value last $X.X This QXm QX coming for current slow driver so XX% the big balance quarters. in our in rate of comfortably Moreover, low and our reported significant fleet expect We reach a rate in level scrap until world $XX.X covers sales million versus increased for containers the with recent Slide is value rates, containership XX% eight been details debt.

by about a increased sizable a seen year-to-date have in June. low we Additionally, XXX% improvement rate of have market current where

period of was $XX,XXX above per The average a net longer day per last are year. available, for in duration As XXXX. an $XX,XXX vessels recorded now over day above five fixed time we charters rates were

our we in July. announced program $X unit million repurchase Finally,

XX.X% So bought or an unit for of average X $XX,XXX units back contracted X% Slide million expected per of our highlight Containers per cost XXXX. quarter at XXXX on have day. X.X net charters. provide index Days a Navios of variable far, an days remaining fixed we outstanding our fourth and has over structure, link unit. $X.XX rate currently price our the of average of on fixed breakeven rate its for

amortization repayments is expenses, includes administrative per expense operating at day. $XX,XXX and expenses, general Our and cost interest total estimated of drydocking expenses, capital which and

QX We providing day. expected breakeven days open and of shows debt our profile. us have Slide index XXX $XX,XXX per open XX maturity an with liquidity and

debt September As XXXX, we cash total of total $XXX.X of of million XX, had million. a $X.X and

point, maintain operation this Our who At debt/ like debt the no until a through the and over Ted XX.X%. and to net overview turn book profile. we capitalization maturities section. Petrone, maturity is us take fleet call their XXXX Moreover, industry significant to I'd staggered will debt have Ted?

Ted Petrone

TEU. Please Thank between fleet slide TEU of XX fleet from consists from is slide XX; to to and New Maritime Navios four consists TEU Baby Containers and of ranging TEU. age is an X,XXX XX,XXX and Baby TEU XX.X new XX X,XXX of Please split totaling approximately ranging with -- X,XXX years, to turn you, XX. Panamaxes of Panamaxes turn The average XXX,XXX vessels Angeliki. to Panamaxes

has rapid for available cash all supply revolves recent strategy segments. new market from is for across while opportunity leveraging recovery charting Panamaxes. The Our which in around short demand tonnage, flow Baby high market capturing the stable caused Panamaxes and the

average Panamaxes period X above $XX,XXX net one Baby of an recently for have out We fixed over year.

linked available are QX of XXXX, For index XX% approximately charters. of our fleets fixed including days

sharp earlier updated has which X.X%. to Government's contained stronger XXXX, market try put at Turn calls one container of continue in much and in XX. China. growth August, and estimated XXXX activity in increase year-on-year than for positive rebound decline. a the economic our advanced monitor This has April more western expected. in to unprecedented look monetary in as third only production is to global healthy come volume by industrial We time essential and slide import in The levels. and increase XXXX to led goods turned route of is is the trade rebound trade raising a consumers in of trade first current plans economic to stimulus in fleet measures trade, to rise container the and targeted the in since estimate and place December. than consumption causing the container in at at to The Different emergency forecasts trade decline XX.X% same caused the fiscal increasing of a stimulus less XXXX. a forecast that for there dramatic have X% recovery economies,

levels. depicted trade Capacity Asian slide and As upper just West transpacific index unresolved than trade hand Coast COVID the strength the below turn mentioned world market. level recover to ever with in vessels increase of FEU to an lead global by tight a year. the led combined levels at shuttle Falling calls graph. expected lead lack stabilize as per to during The longer July growth the the in prompt Shanghai spring Intra higher in help reduction to earlier half trade calls as low US. already the pandemic its the starting fleet in of the levels. exceeded charters there of global containerships June increase port rates. targeted the the fix And Push an in about packages Containership question this of to and $X,XXX eastbound XXXX volume. to trade increasing of US volume The trade Please stimulus normalizes availability to supports container year at continued time first highest right to durations XX. impact trade. is contraction push severe

the reversals is low scrubbers X% scrubber to only is slide XXX to XX. selling demolitions, slide Turn New the X,XXX stood October XXX,XXX The adjusted mid on average is order for over books at an of current XX; below the XX,XXX grew the fleet and the end of which from capacity non Through than the containership time Turning companies considerably vessels services TEU full Baby of idle only is year XXX,XXX of nine deliveries of V at XX% for XX% XX. XXXX trade. [lighter] last were TEU larger order XX by for the as the at the marked and slide account for increased fleet decrease current growth is two for less to a X.X% for vessels and There or recovery and or idle no May, decades. shaped before book vessels at XX,XXX projected X.X% Approximately TEU. X.X%, Please retrofits net Panamaxes. only X.X%. deliveries at order turn retrofitting all over book and larger. of XX% With into

level We expansion. East non levels. of of the mid to has and increased of very fleet. note results. utilizes prior XX,XXX From October trading deliveries that patterns post equal by deliveries XX% over Panama greater to over XX and has vessels' of growth approximately need as XX%, size. trading about to the of freight Baby shift pace the years XXX% a slide vessels Baby XXXX per X January TEU trades have Far After since expansion there also into XX; XX, Turn trade trade Canal demand benefited and the created drafts the which about certain In these of favorable remained in age for June Panama These X.X% in about the to XXXX the to the Disruptions this COVID-XX across Thank significantly. of vessels year-to-date The the of Canal by on day XXX% existent. Erifili? is concludes demand approximately that CFO, you. non like January of turn it deliveries of Panamaxes the America over Panama as such in ports are and charter expansion vessels stands Turn shallower Asian average which outbreak, its vessels. New dramatically have financial deployment the redeployment XXX,XXX books size XXXX Erifili highest would XXX,XXX while aftermath strong deployment to the by XX% fundamentals its This Panamaxes from rate for has XXXX, that Baby XXXX, lanes, TEU Baby June, increased with for for at highest Navios rates dynamics to year. time increased year now global in XX%. since their non Asia our the in mid This increased turn caused the order to long I has Canal XX. from Panamaxes share the this vessel XX%. Panamax increased Please term Containers' review. to remain making published lengths. resulted shorter sizes into X,XXX increased equal non the rates have the time in was $XX,XXX of deliveries slide been Panamaxes Clocks slide of from by in increased for the XXXX, charter call in North trading one has The positive. my TEU the for Tsironi QX low September a container February as to through from year, of

Erifili Tsironi

financial ended Ted, September I press in the the months presentation and financial unaudited and our results referenced will summarized XX, the company's third quarter and in The for you, morning, good briefly all. website. is slide included on XXXX. available a release nine review information Thank

conditions quarter to for $XX the to Revenue $XX.X in XX. is days Moving on third X,XXX some the X,XXX third same XX,XXX XXXX, quarter X,XXX our the were the XX% increase quarter of when to for financial in available shown fleet third number to rate the charter the XXXX from XXXX million million the the of the slide third per for period quarter to per the market due of to of in by compared decreased the year in despite time XXXX decreased compared of of rate of XXXX for day third the quarter during quarter the results decreased equivalent of of contracted. second day XXXX to the charters

to for are and charter XXXX average the We QX, per EBITDA improved concluded we the an $XX.X XXXX, a $X.X this for of to increase agreement, trend, other to vessel the a And million increase number due $XX.X in duration of year. million in decrease administrative due decrease $X.X decrease EBITDA expenses in our million vessel increase was $X.X available expenses. fee the million operating net fixed same offset million at decrease quarter expenses in as million of partially and decrease million and and five days. new operating in voyage the vessels by of decrease charter above Indicatively overall fixed rates. have as and arrangements of $X.X management time last over in income in net. compared see expect revenue $X.X primarily in $XX.X $XX,XXX day year. in per charter million to reversal quarter This The general was in third and expenses was

for and decrease the drydocking Panamaxes; $X.X million are X,XXX costs amortization in of million income of in lower X,XXX due our drydocking decrease survey net expense finance and day of per in end to The in the for deferred in expenses intangible decrease million per relating containers. for decrease which expenses, the amortization million, of by TEU excluding quarter to to and same our EBITDA at $X.X period increase the XXXX. assets a costs, expenses, our compared in special operating X,XXX Baby XXXX partially million fixed the $X.X TEU $X.X XXXX depreciation million offset $X.X vessel mainly mainly for was third at income interest $XX.X was XX,XXX X,XXX for loss net amortization net. containers and Our Net was day and

to the by the $XX,XXX due months XXXX. time months The period the per $X.X highlights, $XX.X primarily due in nine sheet lower in months a from the to to months nine decrease increase net The first million in costs. to $X.X voyage of the EBITDA; was ended same in market $X.X slide as the due first mainly in in expense same increase and relating for to the million nine of rate and for XXXX. for to the revenue equivalent vessel million $X.X for time million net. operating to in intangible income $X.X was days in the the nine compared cost, to decrease in for and to $X.X and decrease other assets the to number due in decreased XXXX X,XXX equivalents in charter for $XX.X ended The million Time million rates decreased September of partially months general offset day months million a XX, partially in XXXX, of income depreciation X,XXX direct increase XX was XXXX for the increase mainly operation; of amortization million in decrease and compared period the September $X.X cash special was the available charter for charter income Moving September net for mainly decrease days first million. XXXX This for management turn the decrease for as drydock September nine and decrease in million nine and $XX.X million number balance year. million million the in XX, increase was months the million, compared was finance $XXX.X partially operating administrative by deferred and and decrease ended This Please period offset first was $XX,XXX XX, and June cash interest expenses $X.X $X.X in million amortization survey the conditions amortization decrease in and by and vessel the depressed same $X.X of nine decrease of to XXXX for the $X.X period expenses the million increase expenses $XX.X to XXXX expenses. the of was decrease million due vessel decrease during agreement, in XX, XXXX. other Net months XXXX nine of per increase EBITDA expenses. to in EBITDA $X.X offset XXXX. and same million million fee available $X.X of revenue fixed $X.X

about units we including deferred has our with million and net of profiles. repayment quarter million attractive $XXX.X fees $X.X million. term portion, program. million utilize We X acquire retain comparable a the unit under repurchase borrowing the to current financing level leverage to X.X Long approximately amounted pricing During

and maturities facilities We our have no until bank significant leasing under XXXX.

Angeliki As of value the million. of for remarks. was Angeliki? September XX, XXXX, $XXX Net now was call back book closing debt/book our to capitalization equity I'll the pass XX.X%. any

Angeliki Frangou

our completes presentation. Erifili. you, This formal Thank QX

open will the to We call questions.

Operator

At this the Angeliki, back to queue. it time, I'll questions are turn over there no in

Angeliki Frangou

we lot completes get This advantage a you. of accomplished market. result. able Containers Navios this and work our has are to of Thank QX

the able Basically pandemic today that short duration. Xx low society. level at We to the with our end seek what and the because in vessel us And reach that gives was the we're created company to the happened And to of have of breakevens. June. opportunity of reengineering in

Looking we forward, demand mark pandemic. our always you results. have completes from learn is positive, This the Thank of we how it question much. the but dynamic supply the QX very

Operator

Instructions] [Operator

Operator

call. This you. concludes Thank conference today's

You disconnect. may now

Navios Maritime Containers (NMCI) 3 Nov 202020 Q3 Earnings call transcript