Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company")
(NYSE:NM), a global, vertically integrated seaborne shipping and
logistics company, today reported financial results for the second
quarter and six months ended June 30, 2016.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"Navios Holdings had a solid second quarter performance, earning
$31.0 million in EBITDA, which was relatively in line with 2015. We
have $143.2 million of cash as of June 30, 2016 and no material
debt maturities until 2019."
Angeliki Frangou continued: "Our scale provides us with
significant operating leverage. Navios Holdings’ opex is estimated
to be approximately 42% less than the industry average. During the
last twelve months, we have also reduced general and administrative
expenses by approximately 30%, which we expect to reduce further to
a total of 40% by year end. This reduction makes us one of the
lowest cost operators among publicly listed dry bulk shipping
companies."
HIGHLIGHTS
Time Charter Coverage
Navios Holdings controls a fleet of 61 vessels totaling 6.3
million dwt, of which 40 are owned and 21 are chartered-in under
long-term charters (collectively, the "Core Fleet"). Navios
Holdings currently operates 57 vessels (19 Capesize, 18 Panamax, 18
Ultra Handymax and two Handysize vessels) totaling 5.9 million dwt.
The current average age of the operating fleet is 7.8 years.
Additionally, Navios Holdings has four newbuilding charter-in
vessels expected to be delivered at various dates beginning in the
fourth quarter of 2016 until 2017.
As of August 22, 2016, Navios Holdings has chartered-out 86.6%
and 34.2% of available days for the remaining six months of 2016
and for 2017, respectively (including index-linked charters), which
are expected to generate $57.1 million and $20.9 million in base
revenue, respectively. The average daily charter-out base rate for
the Core Fleet is $8,813 and $15,319 for the remaining six months
of 2016 and for 2017, respectively. The average daily charter-in
rate for the active long-term charter-in vessels for the remaining
six months of 2016 is estimated at $12,421.
The above figures do not include the fleet of Navios South
American Logistics Inc. (“Navios Logistics”) and vessels servicing
contracts of affreightment.
Exhibit II provides certain details of the Core Fleet of Navios
Holdings. It does not include the fleet of Navios Logistics.
Earnings Highlights
See Exhibit I under the heading, "Disclosure of Non-GAAP
Financial Measures," for a discussion of EBITDA of Navios Holdings
(including Navios Logistics), and of Navios Logistics (on a
stand-alone basis), and a reconciliation of such measures to the
most comparable measures calculated under U.S. GAAP.
Second Quarter 2016 and 2015 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The second quarter 2016 and 2015 information presented below was
derived from the unaudited condensed consolidated financial
statements for the respective periods.
|
|
Three Month
Period Ended |
|
Three Month
Period Ended |
|
|
June
30, |
|
June
30, |
|
|
2016 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
Revenue |
|
$ |
105,733 |
|
|
$ |
119,839 |
|
Net Loss |
|
$ |
(26,416 |
) |
|
$ |
(24,813 |
) |
Net cash provided by operating activities |
|
$ |
11,197 |
|
|
$ |
2,095 |
|
EBITDA |
|
$ |
31,054 |
|
|
$ |
32,705 |
|
Basic Loss per Share |
|
$ |
(0.29 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
Revenue from dry bulk vessel operations for the three months
ended June 30, 2016 was $47.0 million as compared to $53.6 million
for the same period during 2015. The decrease in dry bulk revenue
was mainly attributable to (i) a decrease in available days of our
fleet by 648 days, mainly due to a decrease in short-term
charter-in and long-term charter-in fleet available days; and (ii)
the decline in the freight market during 2016, as compared to the
same period in 2015.
Revenue from the logistics business was $58.8 million for the
three months ended June 30, 2016 as compared to $66.2 million for
the same period during 2015. The decrease was mainly attributable
to (i) a decrease in sales of products in the liquid terminal, due
to lower volume and lower price of products sold; (ii) a decrease
in products transported in the dry and liquid port terminals; and
(iii) a decrease in the number of available days of the cabotage
fleet.
EBITDA of Navios Holdings for the three months ended June 30,
2016 decreased by $1.6 million to $31.1 million as compared to
$32.7 million for the same period of 2015. The $1.6 million
decrease in EBITDA was primarily due to (i) a $14.1 million
decrease in revenue; and (ii) a $14.6 million decrease in equity in
net earnings from affiliated companies. This overall decrease of
$28.7 million was partially mitigated by (i) a $21.8 million
decrease in time charter, voyage and logistics business expenses;
(ii) a $1.4 million decrease in direct vessel expenses (excluding
the amortization of deferred drydock and special survey costs);
(iii) a $2.4 million decrease in general and administrative
expenses (excluding share-based compensation expenses); (iv) a $0.8
million decrease in other expense, net; and (v) a $0.7 million
decrease in net income attributable to the noncontrolling
interest.
EBITDA of Navios Logistics was $20.7 million for the three month
period ended June 30, 2016 as compared to $22.7 million for the
same period in 2015.
Net Loss of Navios Holdings for the three months ended June 30,
2016 was $26.4 million as compared to $24.8 million for the same
period of 2015. The $1.6 million increase in Net Loss was mainly
due to (i) a decrease in EBITDA by $1.6 million; (ii) a decrease in
income tax benefit of $1.0 million; (iii) an increase in
amortization for deferred drydock and special survey costs of $0.4
million; and (iv) an increase in share-based compensation expense
of $0.1 million. This overall increase was partially mitigated by
(i) a decrease in interest expense and finance cost, net by $1.1
million; and (ii) a decrease in depreciation and amortization by
$0.4 million.
First Half of 2016 and 2015 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The information for the six month period ended June 30, 2016 and
2015 presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Six Month Period
Ended |
|
Six Month Period
Ended |
|
|
June
30, |
|
June
30, |
|
|
2016 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
Revenue |
|
$ |
207,220 |
|
|
$ |
238,119 |
|
Net Loss |
|
$ |
(33,881 |
) |
|
$ |
(51,491 |
) |
Net cash provided by operating activities |
|
$ |
40,137 |
|
|
$ |
1,739 |
|
EBITDA |
|
$ |
76,478 |
|
|
$ |
58,946 |
|
Basic Loss per Share |
|
$ |
(0.39 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
Revenue from dry bulk vessel operations for the six months ended
June 30, 2016 was $93.3 million as compared to $106.8 million for
the same period during 2015. The decrease in drybulk revenue was
mainly attributable to the decline in the freight market during
2016, as compared to the same period in 2015.
Revenue from the logistics business was $114.0 million for the
six months ended June 30, 2016 as compared to $131.3 million for
the same period of 2015. This decrease was mainly attributable to
(i) a decrease in sales of products in the liquid terminal, due to
lower volume and lower price of products sold; (ii) a decrease in
products transported in the dry and liquid port terminals; and
(iii) a decrease in the number of available days of the cabotage
fleet. This overall decrease was partially mitigated by an increase
in dry and liquid cargoes transported in the barge business.
EBITDA of Navios Holdings for the six month period ended June
30, 2016 increased by $17.6 million to $76.5 million as compared to
$58.9 million for the same period of 2015. The $17.6 million
increase in EBITDA was primarily due to (i) a $45.3 million
decrease in time charter, voyage and logistics business expenses;
(ii) a $2.5 million decrease in direct vessel expenses (excluding
the amortization of deferred drydock and special survey costs);
(iii) a $2.9 million decrease in general and administrative
expenses (excluding share-based compensation expenses); and (iv) a
$14.3 million increase in other income, net. This overall increase
of $65.0 million was partially mitigated by (i) a $30.9 million
decrease in revenue; (ii) a $15.5 million decrease in equity in net
earnings from affiliated companies; and (iii) a $1.0 million
increase in net income attributable to the noncontrolling
interest.
EBITDA of Navios Logistics was $41.8 million for the six month
period ended June 30, 2016 as compared to $38.3 million for the
same period in 2015.
Net Loss of Navios Holdings for the six months ended June 30,
2016 was $33.9 million as compared to $51.5 million for the same
period of 2015. The $17.6 million decrease in Net Loss was mainly
due to (i) an increase in EBITDA of $17.6 million; (ii) a decrease
in interest expense and finance cost, net of $1.5 million; and
(iii) a decrease in depreciation and amortization of $1.7 million.
This decrease in Net Loss was partially mitigated by (i) an
increase in income tax expense of $2.3 million; (ii) an increase of
$0.7 million in amortization for deferred drydock and special
survey costs; and (iii) an increase of $0.2 million in share-based
compensation expense.
Fleet Summary Data:
The following table reflects certain key indicators indicative
of the performance of the Navios Holdings' dry bulk operations
(excluding the Navios Logistics fleet) and its fleet performance
for the three and six month periods ended June 30, 2016 and 2015,
respectively.
|
|
Three
Month |
|
Three
Month |
|
Six
Month |
|
Six
Month |
|
|
Period
Ended |
|
Period
Ended |
|
Period
Ended |
|
Period
Ended |
|
|
June
30, |
|
June
30, |
|
June
30, |
|
June
30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
|
5,198 |
|
|
|
5,846 |
|
|
|
11,158 |
|
|
|
11,184 |
|
Operating Days (2) |
|
|
5,181 |
|
|
|
5,793 |
|
|
|
11,037 |
|
|
|
11,077 |
|
Fleet Utilization (3) |
|
|
99.7 |
% |
|
|
99.1 |
% |
|
|
98.9 |
% |
|
|
99.0 |
% |
Equivalent Vessels
(4) |
|
|
57 |
|
|
|
64 |
|
|
|
61 |
|
|
|
62 |
|
TCE (5) |
|
$ |
8,445 |
|
|
$ |
7,457 |
|
|
$ |
7,678 |
|
|
$ |
7,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Available days for the fleet are total calendar days the
vessels were in Navios Holdings' possession for the relevant period
after subtracting off-hire days associated with major repairs,
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 due to any reason, including unforeseen circumstances.
The shipping industry uses operating days to measure the aggregate
number of days in a relevant period during which vessels actually
generate revenues.
(3) Fleet utilization is the percentage of time that Navios
Holdings' 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.
The shipping industry uses fleet utilization to measure a company's
efficiency in finding suitable employment for its vessels.
(4) Equivalent Vessels is defined as the total available days
during a relevant period divided by the number of days of this
period.
(5) Time charter equivalent rate (“TCE”) 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 Holdings will host a conference
call today, August 25, 2016, at 8:30 am ET, at which time Navios
Holdings' senior management will provide highlights and commentary
on earnings results for the second quarter and six months ended
June 30, 2016.
A supplemental slide presentation will be available on the
Navios Holdings website at www.navios.com under the "Investors"
section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Thursday, August 25, 2016, at 8:30 am ET Call
Title: Navios Holdings Q2 2016 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 2750 5133
The conference call replay will be available shortly 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: 27505133
This call will be simultaneously Webcast. The Webcast will be
available on the Navios Holdings website, www.navios.com, under the
"Investors" section. The Webcast will be archived and available at
the same Web address for two weeks following the call.
About Navios Maritime Holdings Inc.
Navios Maritime Holdings Inc. (NYSE:NM) is a global, vertically
integrated seaborne shipping and logistics company focused on the
transport and transshipment of dry bulk commodities including iron
ore, coal and grain. For more information about Navios Holdings
please visit our website: www.navios.com.
About Navios South American Logistics Inc.
Navios South American Logistics Inc. is one of the largest
logistics companies in the Hidrovia region of South America,
focusing on the Hidrovia region river system, the main navigable
river system in the region, and on cabotage trades along the
eastern coast of South America. Navios Logistics serves the storage
and marine transportation needs of its petroleum, agricultural and
mining customers through its port terminals, river barge and
coastal cabotage operations. For more information about Navios
Logistics please visit its website: www.navios-logistics.com.
About Navios Maritime Partners L.P.
Navios Partners (NYSE:NMM) is a publicly traded master limited
partnership which owns and operates container and dry cargo
vessels. For more information, please visit its website at
www.navios-mlp.com.
About Navios Maritime Acquisition
Corporation
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker
vessels focusing on the transportation of petroleum products (clean
and dirty) and bulk liquid chemicals. For more information about
Navios Acquisition, please visit its website:
www.navios-acquisition.com.
About Navios Maritime Midstream Partners
L.P.
Navios Maritime Midstream Partners L.P. (NYSE:NAP) is a publicly
traded master limited partnership which owns and operates crude oil
tankers under long-term employment contracts. For more information,
please visit its website at www.navios-midstream.com.
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 2016 and 2017 cash flow
generation, future contracted revenues, potential capital gains,
our ability to take advantage of dislocation in the market, and
Navios Holdings' growth strategy and measures to implement such
strategy; including expected vessel acquisitions 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. Such statements include
comments regarding expected revenue and time charters. These
forward-looking statements are based on the information available
to, and the expectations and assumptions deemed reasonable by
Navios Holdings at the time these statements were made. Although
Navios Holdings 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 known and unknown risks and are based upon a
number of assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Holdings. 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 uncertainty relating to
global trade, including prices of seaborne commodities and
continuing issues related to seaborne volume and ton miles, our
continued ability to enter into long-term time charters, our
ability to maximize the use of our vessels, expected demand in the
dry cargo shipping sector in general and the demand for our
Panamax, Capesize and UltraHandymax vessels in particular,
fluctuations in charter rates for dry cargo carriers vessels, the
aging of our fleet and resultant increases in operations costs, the
loss of any customer or charter or vessel, the financial condition
of our customers, changes in the availability and costs of funding
due to conditions in the bank market, capital markets and other
factors, increases in costs and expenses, including but not limited
to: crew wages, insurance, provisions, port expenses, lube oil,
bunkers, repairs, maintenance, and general and administrative
expenses, the expected cost of, and our ability to comply with,
governmental regulations and maritime self-regulatory organization
standards, as well as standard regulations imposed by our
charterers applicable to our business, general domestic and
international political conditions, competitive factors in the
market in which Navios Holdings operates; risks associated with
operations outside the United States; and other factors listed from
time to time in Navios Holdings' filings with the Securities and
Exchange Commission, including its Form 20-F’s and Form 6-K’s.
Navios Holdings expressly disclaims any obligations or undertaking
to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Navios
Holdings' expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based. Navios Holdings makes no prediction or statement about the
performance of its common stock.
EXHIBIT
I |
NAVIOS MARITIME
HOLDINGS INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Expressed in
thousands of U.S. dollars — except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Month Period
Ended June 30, 2016 |
|
|
Three
Month Period
Ended June 30, 2015 |
|
|
Six
Month Period
Ended June 30, 2016 |
|
|
Six
Month Period
Ended June 30, 2015 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
|
|
|
$ |
105,733 |
|
|
$ |
119,839 |
|
|
$ |
207,220 |
|
|
$ |
238,119 |
|
Administrative fee revenue
from affiliates |
|
|
|
|
5,463 |
|
|
|
3,882 |
|
|
|
10,945 |
|
|
|
7,804 |
|
Time charter, voyage and
logistics business expenses |
|
|
|
|
(36,095 |
) |
|
|
(57,856 |
) |
|
|
(82,476 |
) |
|
|
(127,790 |
) |
Direct vessel
expenses(1) |
|
|
|
|
(34,685 |
) |
|
|
(35,748 |
) |
|
|
(64,759 |
) |
|
|
(66,565 |
) |
General and administrative
expenses incurred on behalf of affiliates |
|
|
|
|
(5,463 |
) |
|
|
(3,882 |
) |
|
|
(10,945 |
) |
|
|
(7,804 |
) |
General and administrative
expenses(2) |
|
|
|
|
(6,392 |
) |
|
|
(8,668 |
) |
|
|
(12,830 |
) |
|
|
(15,479 |
) |
Depreciation and
amortization |
|
|
|
|
(27,132 |
) |
|
|
(27,479 |
) |
|
|
(46,959 |
) |
|
|
(48,684 |
) |
Interest expense and
finance cost, net |
|
|
|
|
(26,698 |
) |
|
|
(27,838 |
) |
|
|
(54,448 |
) |
|
|
(55,876 |
) |
Other (expense)/income,
net |
|
|
|
|
(2,530 |
) |
|
|
(3,321 |
) |
|
|
9,134 |
|
|
|
(5,235 |
) |
Loss before equity
in net earnings of affiliated companies |
|
|
|
|
(27,799 |
) |
|
|
(41,071 |
) |
|
|
(45,118 |
) |
|
|
(81,510 |
) |
Equity in net earnings of
affiliated companies |
|
|
|
|
3,424 |
|
|
|
17,968 |
|
|
|
16,376 |
|
|
|
31,880 |
|
Loss before
taxes |
|
|
|
$ |
(24,375 |
) |
|
$ |
(23,103 |
) |
|
$ |
(28,742 |
) |
|
$ |
(49,630 |
) |
Income tax
benefit/(expense) |
|
|
|
|
621 |
|
|
|
1,695 |
|
|
|
(424 |
) |
|
|
1,843 |
|
Net
loss |
|
|
|
|
(23,754 |
) |
|
|
(21,408 |
) |
|
|
(29,166 |
) |
|
|
(47,787 |
) |
Less: Net income
attributable to the noncontrolling interest |
|
|
|
|
(2,662 |
) |
|
|
(3,405 |
) |
|
|
(4,715 |
) |
|
|
(3,704 |
) |
Net loss
attributable to Navios Holdings common
stockholders |
|
|
|
$ |
(26,416 |
) |
|
$ |
(24,813 |
) |
|
$ |
(33,881 |
) |
|
$ |
(51,491 |
) |
Loss attributable
to Navios Holdings common stockholders, basic and
diluted |
|
|
|
$ |
(30,387 |
) |
|
$ |
(28,906 |
) |
|
$ |
(41,822 |
) |
|
$ |
(59,657 |
) |
Basic and diluted
net losses per share attributable to Navios Holdings common
stockholders |
|
|
|
$ |
(0.29 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.57 |
) |
Weighted average
number of shares, basic and diluted |
|
|
|
|
106,009,049 |
|
|
|
105,401,820 |
|
|
|
106,022,826 |
|
|
|
105,251,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes expenses of Navios Logistics of $21.4 million and
$22.9 million for the three months ended June 30, 2016 and 2015,
respectively and $38.1 million and $41.0 million for the six months
ended June 30, 2016 and 2015, respectively.
(2) Includes expenses of Navios Logistics of $3.5 million and
$3.9 million for the three months ended June 30, 2016 and 2015,
respectively and $6.8 million and $7.5 million for the six months
ended June 30, 2016 and 2015, respectively.
NAVIOS MARITIME
HOLDINGS INC. |
Other Financial
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2016 |
|
|
December 31,
2015 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
including restricted cash |
|
|
$ |
143,200 |
|
|
$ |
176,892 |
|
Other current assets |
|
|
|
143,766 |
|
|
|
126,067 |
|
Deposits for vessels, port
terminals and other fixed assets |
|
|
|
91,669 |
|
|
|
73,949 |
|
Vessels, port terminal and
other fixed assets, net |
|
|
|
1,868,668 |
|
|
|
1,823,961 |
|
Other noncurrent
assets |
|
|
|
449,578 |
|
|
|
447,151 |
|
Goodwill and other
intangibles |
|
|
|
304,814 |
|
|
|
310,793 |
|
Total
assets |
|
|
$ |
3,001,695 |
|
|
$ |
2,958,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities,
including current portion of long-term debt, net |
|
|
|
245,040 |
|
|
|
226,856 |
|
Senior and ship mortgage
notes, net |
|
|
|
1,352,860 |
|
|
|
1,350,941 |
|
Long-term debt, net of
current portion |
|
|
|
252,520 |
|
|
|
213,423 |
|
Other noncurrent
liabilities |
|
|
|
69,184 |
|
|
|
57,041 |
|
Total stockholders’
equity |
|
|
|
1,082,091 |
|
|
|
1,110,552 |
|
Total liabilities
and stockholders’ equity |
|
|
$ |
3,001,695 |
|
|
$ |
2,958,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Month
Period Ended June 30, 2016 |
|
|
|
Six Month
Period Ended June 30, 2015 |
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
Net cash provided by
operating activities |
|
|
$ |
40,137 |
|
|
$ |
1,739 |
|
Net cash used in
investing activities |
|
|
$ |
(112,319 |
) |
|
$ |
(18,176 |
) |
Net cash provided
by/(used in) financing activities |
|
|
$ |
49,299 |
|
|
$ |
(50,753 |
) |
|
|
|
|
|
|
|
|
|
|
Disclosure of Non-GAAP Financial Measures
EBITDA is a non-U.S. GAAP financial measure and should not be
used in isolation or as substitution for Navios Holdings' results
calculated in accordance with U.S. GAAP.
EBITDA represents net (loss)/income attributable to Navios
Holdings' common stockholders before interest and finance costs,
before depreciation and amortization, before income taxes and
before stock-based compensation. We use EBITDA as a liquidity
measure and reconcile EBITDA to net cash provided by operating
activities, the most comparable U.S. GAAP liquidity measure. EBITDA
is calculated as follows: net cash provided by operating activities
adding back, when applicable and as the case may be, the effect of
(i) net increase/(decrease) in operating assets, (ii) net
(increase)/decrease in operating liabilities, (iii) net interest
cost, (iv) deferred finance charges and other related expenses, (v)
provision for losses on accounts receivable, (vi) equity in
affiliates, net of dividends received, (vii) payments for drydock
and special survey costs, (viii) noncontrolling interest, and (ix)
reclassification to earnings of available–for-sale securities and
impairment charges. Navios Holdings believes that EBITDA is a basis
upon which liquidity can be assessed and represents useful
information to investors regarding Navios Holdings’ ability to
service and/or incur indebtedness, pay capital expenditures, meet
working capital requirements and pay dividends. Navios Holdings
also believes that EBITDA is used (i) by prospective and current
lessors as well as potential lenders to evaluate potential
transactions; (ii) to evaluate and price potential acquisition
candidates; and (iii) by securities analysts, investors and other
interested parties in the evaluation of companies in our
industry.
EBITDA has limitations as an analytical tool, and therefore,
should not be considered in isolation or as a substitute for the
analysis of Navios Holdings’ results as reported under U.S. GAAP.
Some of these limitations are: (i) EBITDA does not reflect changes
in, or cash requirements for, working capital needs; (ii) EBITDA
does not reflect the amounts necessary to service interest or
principal payments on our debt and other financing arrangements;
and (iii) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future. EBITDA does not reflect any cash
requirements for such capital expenditures. Because of these
limitations, among others, EBITDA should not be considered as a
principal indicator of Navios Holdings’ performance. Furthermore,
our calculation of EBITDA may not be comparable to that reported by
other companies due to differences in methods of calculation.
Navios Logistics’ EBITDA is used to measure its operating
performance.
The following tables provide a reconciliation of EBITDA of
Navios Holdings (including Navios Logistics) and EBITDA of Navios
Logistics on a stand-alone basis:
Navios Holdings Reconciliation of EBITDA to Cash from
Operations
|
|
June
30, |
|
|
June
30, |
Three Months
Ended |
|
2016 |
|
|
2015 |
(in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
11,197 |
|
|
|
$ |
2,095 |
|
Net increase/(decrease) in
operating assets |
|
|
447 |
|
|
|
|
(27,570 |
) |
Net (increase)/decrease in
operating liabilities |
|
|
(3,753 |
) |
|
|
|
18,343 |
|
Net interest cost |
|
|
26,698 |
|
|
|
|
27,838 |
|
Deferred finance charges |
|
|
(1,411 |
) |
|
|
|
(1,046 |
) |
Provision for losses on accounts
receivable |
|
|
(43 |
) |
|
|
|
56 |
|
Equity in affiliates, net of
dividends received |
|
|
(783 |
) |
|
|
|
9,109 |
|
Payments for drydock and special
survey |
|
|
1,709 |
|
|
|
|
7,285 |
|
Noncontrolling interest |
|
|
(2,662 |
) |
|
|
|
(3,405 |
) |
Loss on available-for-sale
securities |
|
|
(345 |
) |
|
|
|
— |
|
EBITDA |
|
$ |
31,054 |
|
|
|
$ |
32,705 |
|
|
|
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
|
June
30, |
|
|
June
30, |
Three Months
Ended |
|
2016 |
|
|
2015 |
(in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,362 |
|
|
|
$ |
9,412 |
|
Depreciation and amortization |
|
|
6,387 |
|
|
|
|
6,591 |
|
Amortization of deferred drydock
and special survey costs |
|
|
1,787 |
|
|
|
|
1,752 |
|
Interest expense and finance cost,
net |
|
|
5,829 |
|
|
|
|
6,735 |
|
Income tax benefit |
|
|
(694 |
) |
|
|
|
(1,767 |
) |
EBITDA |
|
$ |
20,671 |
|
|
|
$ |
22,723 |
|
|
|
|
|
|
|
|
|
|
|
Navios Holdings Reconciliation of EBITDA to Cash from
Operations
|
|
June
30, |
|
|
June
30, |
Six
Months Ended |
|
2016 |
|
|
2015 |
(in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
40,137 |
|
|
|
$ |
1,739 |
|
Net increase/(decrease) in
operating assets |
|
|
11,776 |
|
|
|
|
(59,508 |
) |
Net (increase)/decrease in
operating liabilities |
|
|
(33,156 |
) |
|
|
|
36,630 |
|
Net interest cost |
|
|
54,448 |
|
|
|
|
55,876 |
|
Deferred finance charges |
|
|
(2,695 |
) |
|
|
|
(2,155 |
) |
Provision for losses on accounts
receivable |
|
|
(149 |
) |
|
|
|
(10 |
) |
Equity in affiliates, net of
dividends received |
|
|
8,105 |
|
|
|
|
14,162 |
|
Payments for drydock and special
survey |
|
|
3,072 |
|
|
|
|
15,916 |
|
Noncontrolling interest |
|
|
(4,715 |
) |
|
|
|
(3,704 |
) |
Loss on available-for-sale
securities |
|
|
(345 |
) |
|
|
|
— |
|
EBITDA |
|
$ |
76,478 |
|
|
|
$ |
58,946 |
|
|
|
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
|
|
|
|
|
|
|
June
30, |
|
|
June
30, |
Six Months
Ended |
|
2016 |
|
|
2015 |
(in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,036 |
|
|
$ |
|
10,238 |
|
Depreciation and amortization |
|
|
13,061 |
|
|
|
|
13,058 |
|
Amortization of deferred drydock
and special survey costs |
|
|
3,385 |
|
|
|
|
3,463 |
|
Interest expense and finance cost,
net |
|
|
12,033 |
|
|
|
|
13,548 |
|
Income tax expense/(benefit) |
|
|
282 |
|
|
|
|
(1,985 |
) |
EBITDA |
|
$ |
41,797 |
|
|
$ |
|
38,322 |
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT
II |
|
|
|
|
|
|
|
Owned Vessels |
Vessel
Name |
|
Vessel
Type |
|
Year
Built |
|
Deadweight
(in metric tons) |
Navios
Serenity |
|
Handysize |
|
2011 |
|
34,690 |
Navios
Ionian |
|
Ultra
Handymax |
|
2000 |
|
52,067 |
Navios
Horizon |
|
Ultra
Handymax |
|
2001 |
|
50,346 |
Navios
Herakles |
|
Ultra
Handymax |
|
2001 |
|
52,061 |
Navios
Achilles |
|
Ultra
Handymax |
|
2001 |
|
52,063 |
Navios
Vector |
|
Ultra
Handymax |
|
2002 |
|
50,296 |
Navios
Meridian |
|
Ultra
Handymax |
|
2002 |
|
50,316 |
Navios
Mercator |
|
Ultra
Handymax |
|
2002 |
|
53,553 |
Navios
Arc |
|
Ultra
Handymax |
|
2003 |
|
53,514 |
Navios
Hios |
|
Ultra
Handymax |
|
2003 |
|
55,180 |
Navios
Kypros |
|
Ultra
Handymax |
|
2003 |
|
55,222 |
Navios
Astra |
|
Ultra
Handymax |
|
2006 |
|
53,468 |
Navios
Ulysses |
|
Ultra
Handymax |
|
2007 |
|
55,728 |
Navios
Celestial |
|
Ultra
Handymax |
|
2009 |
|
58,063 |
Navios
Vega |
|
Ultra
Handymax |
|
2009 |
|
58,792 |
Navios
Magellan |
|
Panamax |
|
2000 |
|
74,333 |
Navios
Star |
|
Panamax |
|
2002 |
|
76,662 |
Navios
Northern Star |
|
Panamax |
|
2005 |
|
75,395 |
Navios
Amitie |
|
Panamax |
|
2005 |
|
75,395 |
Navios
Taurus |
|
Panamax |
|
2005 |
|
76,596 |
Navios
Asteriks |
|
Panamax |
|
2005 |
|
76,801 |
Navios
Galileo |
|
Panamax |
|
2006 |
|
76,596 |
N
Amalthia |
|
Panamax |
|
2006 |
|
75,318 |
N
Bonanza |
|
Panamax |
|
2006 |
|
76,596 |
Navios
Avior |
|
Panamax |
|
2012 |
|
81,355 |
Navios
Centaurus |
|
Panamax |
|
2012 |
|
81,472 |
Navios
Sphera |
|
Panamax |
|
2016 |
|
84,872 |
Navios
Stellar |
|
Capesize |
|
2009 |
|
169,001 |
Navios
Bonavis |
|
Capesize |
|
2009 |
|
180,022 |
Navios
Happiness |
|
Capesize |
|
2009 |
|
180,022 |
Navios
Phoenix |
|
Capesize |
|
2009 |
|
180,242 |
Navios
Lumen |
|
Capesize |
|
2009 |
|
180,661 |
Navios
Antares |
|
Capesize |
|
2010 |
|
169,059 |
Navios
Etoile |
|
Capesize |
|
2010 |
|
179,234 |
Navios
Bonheur |
|
Capesize |
|
2010 |
|
179,259 |
Navios
Altamira |
|
Capesize |
|
2011 |
|
179,165 |
Navios
Azimuth |
|
Capesize |
|
2011 |
|
179,169 |
Navios
Ray |
|
Capesize |
|
2012 |
|
179,515 |
Navios
Gem |
|
Capesize |
|
2014 |
|
181,336 |
Navios
Mars |
|
Capesize |
|
2016 |
|
181,259 |
|
|
|
|
|
|
|
Long term Chartered-in Fleet in Operation |
|
Vessel Name |
|
Vessel
Type |
|
Year
Built |
|
Deadweight (in metric
tons) |
|
Purchase
Option(1) |
Navios Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
Yes
(2) |
Navios Primavera |
|
Ultra
Handymax |
|
2007 |
|
53,464 |
|
Yes |
Navios Oriana |
|
Ultra
Handymax |
|
2012 |
|
61,442 |
|
Yes |
Navios Mercury |
|
Ultra
Handymax |
|
2013 |
|
61,393 |
|
Yes |
Navios Venus |
|
Ultra
Handymax |
|
2015 |
|
61,339 |
|
Yes |
Navios Aldebaran |
|
Panamax |
|
2008 |
|
76,500 |
|
Yes |
Navios Marco Polo |
|
Panamax |
|
2011 |
|
80,647 |
|
Yes |
Navios Southern Star |
|
Panamax |
|
2013 |
|
82,224 |
|
Yes |
Sea Victory |
|
Panamax |
|
2014 |
|
77,095 |
|
Yes |
Navios Sky |
|
Panamax |
|
2015 |
|
82,056 |
|
Yes |
Navios Amber |
|
Panamax |
|
2015 |
|
80,994 |
|
Yes |
Beaufiks |
|
Capesize |
|
2004 |
|
180,310 |
|
Yes |
King Ore |
|
Capesize |
|
2010 |
|
176,800 |
|
Yes |
Navios Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
Yes |
Navios Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
Yes |
Dream Canary |
|
Capesize |
|
2015 |
|
180,528 |
|
Yes |
Dream Coral |
|
Capesize |
|
2015 |
|
181,249 |
|
Yes |
|
|
|
|
|
|
|
|
|
Long-term Chartered-in Fleet to be Delivered |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel |
|
Delivery |
|
|
Deadweight |
Purchase |
Vessels |
|
Type |
|
Date |
|
|
(in metric
tons) |
Option |
Navios Felix |
|
Capesize |
|
Q4
2016 |
|
|
180,000 |
Yes |
Navios Coral |
|
Panamax |
|
Q4
2016 |
|
|
84,000 |
Yes |
Navios Citrine |
|
Panamax |
|
Q1
2017 |
|
|
81,000 |
Yes |
Navios Dolphin |
|
Panamax |
|
Q1
2017 |
|
|
81,000 |
Yes |
(1) Generally, Navios Holdings may exercise its purchase option
after three to five years of service.
(2) Navios Holdings holds the initial 50% purchase option on the
vessel.
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com
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